Marimekko Corporation INTERIM REPORT
5 November 2008 at 8.30 a.m.
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2008
NET SALES AND EARNINGS RISE AS PREDICTED
In the January-September period of 2008, the Marimekko Group's net sales rose by
8% to EUR 59.0 million (EUR 54.6 million). Operating profit improved by 14% to
EUR 8.1 million (EUR 7.1 million). Profit after taxes for the period grew by 15%
to EUR 6.0 million (EUR 5.2 million). Earnings per share rose to EUR 0.75 (EUR
0.65). Deliveries for individual promotions in Finland and one-off income from
sales of licensed products had a favourable impact on net sales growth and
earnings. The full-year estimate is unchanged: in 2008, net sales growth and the
Group's relative profitability are expected to remain at the same level as in
2007.
1-9/ 1-9/ Change, 1-12/
2008 2007 % 2007
Net sales, EUR 1,000 59,046 54,608 8.1 77,264
Exports and income from
international operations,
% of net sales 29.9 28.0 26.5
Operating profit, EUR 1,000 8,111 7,105 14.2 10,487
Profit before taxes,
EUR 1,000 8,124 7,067 15.0 10,442
Profit for the period,
EUR 1,000 6,012 5,231 14.9 7,717
Earnings per share, EUR 0.75 0.65 14.9 0.96
Equity per share, EUR 3.75 3.35 12.2 3.66
Return on equity (ROE), % 26.9 25.9 27.4
Return on investment (ROI), % 33.8 31.5 35.0
Equity ratio, % 71.8 68.1 72.7
All of Marimekko's stock exchange releases are available on the company's
website www.marimekko.com under Investors/Releases.
For additional information, contact:
Mika Ihamuotila, President and CEO, tel. +358 9 758 71
Thomas Ekström, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Group Communications
Marja Korkeela
Tel. +358 9 758 7238
Fax +358 9 759 1676
Email: marja.korkeela@marimekko.fi
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Principal media
Marimekko's website www.marimekko.com
Marimekko is a leading Finnish textile and clothing design company that was
established in 1951. The company designs, manufactures and markets high-quality
clothing, interior decoration textiles, bags and other accessories under the
Marimekko brand, both in Finland and abroad. Marimekko products are also
manufactured under license in various countries. In 2007, the company's net
sales amounted to EUR 77.3 million. Exports and income from international
operations accounted for 26.5% of the Group's net sales. The Group employs about
400 people. The company's share is quoted on the NASDAQ OMX Helsinki Ltd. For
further information, visit www.marimekko.com.
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2008
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance with IAS 34:
Interim Financial Reporting and applying the same accounting policy as for the
2007 financial statements. The information presented in this interim report is
unaudited.
NET SALES
July - September
In the July-September period of 2008, the Marimekko Group's net sales rose by
5.9%, amounting to EUR 21,913 thousand (EUR 20,699 thousand). Net sales in
Finland rose by 6.1% to EUR 15,776 thousand (EUR 14,876 thousand). A significant
part of the growth was generated by an individual promotional delivery. Exports
and income from international operations rose by 5.4% and totalled EUR 6,137
thousand (EUR 5,823 thousand). Growth was notably slower than in the
corresponding period of the previous year.
January - September
In the January-September period of 2008, the Marimekko Group's net sales rose by
8.1%, amounting to EUR 59,046 thousand (EUR 54,608 thousand). Net sales in
Finland grew by 5.3% to EUR 41,413 thousand (EUR 39,319 thousand). The growth
was mainly generated by individual promotional deliveries. Exports and income
from international operations rose by 15.3% and totalled EUR 17,633 thousand
(EUR 15,289 thousand). Exports and income from international operations
accounted for 29.9% (28.0%) of the Group's net sales.
The breakdown of the Group's net sales by product line was as follows: clothing,
39.6%; interior decoration, 42.0%; and bags, 18.4%. Net sales by market area
were: Finland, 70.1%; the other Nordic countries, 13.2%; the rest of Europe,
6.4%; North America, 4.9%; and other countries (Japan and other regions outside
Europe and North America), 5.4%.
During the review period, sales in Marimekko's own retail stores in Finland rose
by 2.5% (0.1%). Sales to retailers in Finland did not change year-on-year.
MARKET SITUATION
The international economic outlook weakened at an accelerating rate during the
third quarter, and economic growth slowed down globally. Finland also
experienced a distinct slowdown of growth compared with the early part of the
year, which has caused a notable drop in both industry and consumer confidence
indicators. In the January-September period of 2008, the value of retail sales
in Finland grew by 7.1% (Statistics Finland: Retail trade quick estimate,
September 2008). Retail sales of clothing grew by 1.4%. Sales of womenswear were
up 1.2% and childrenswear 3.3%. Sales of menswear were at the same level as a
year ago. Sales of bags grew by 8.9%, while sales of home textiles were down
0.5% (Textile and Fashion Industries TMA). In the January-August period of 2008,
exports of clothing (SITC 84) decreased by 3%; imports rose by 3%. Exports of
textiles (SITC 65) grew by 0.5%, while imports fell by 5% (National Board of
Customs, monthly review, August/2008).
REVIEWS BY BUSINESS UNIT
Clothing
In the January-September period of 2008, net sales of clothing rose by 2.0%,
amounting to EUR 23,367 thousand (EUR 22,900 thousand). A fall was seen in sales
in Finland. International sales development varied greatly by country. Vigorous
growth was registered in the market area referred to as “other Nordic
countries”. This growth was boosted in the second quarter by substantial one-off
royalty income from licensing co-operation between Marimekko and H & M Hennes &
Mauritz AB. Rapid growth was also seen in the market area referred to as “other
countries”. The opening of new Marimekko concept stores in Japan contributed to
the favourable development. Year-on-year sales in the United States did not
change, but sales clearly fell in the market area referred to as “the rest of
Europe”. Exports and income from international operations accounted for 29.2% of
net sales of clothing.
Interior decoration
Net sales of interior decoration products rose by 7.0% to EUR 24,812 thousand
(EUR 23,194 thousand). The majority of the growth seen in Finland was generated
by deliveries for individual promotions. International growth was clearly more
sluggish than a year ago except in Japan, where growth was vigorous. To some
extent, the year-on-year growth of the interior decoration product line was
slowed down by lower income from sales of licensed products, both in Finland and
abroad. Exports and income from international operations accounted for 30.8% of
net sales of interior decoration products.
Bags
Net sales of bags rose by 27.6% to EUR 10,867 thousand (EUR 8,514 thousand).
Growth picked up both in Finland and the export market. In Finland, sales were
boosted by a substantial delivery for a one-off promotional campaign. Vigorous
growth was seen in all export markets except North America, which experienced a
fall in sales. The greatest relative growth in sales of bags was seen in the
market areas referred to as “other countries” and “the rest of Europe”. Exports
and income from international operations accounted for 29.1% of net sales of
bags.
Business-to-business sales
Business-to-business sales (former “business gifts and contract sales”) rose by
53.9%. The growth was generated by an individual delivery for a promotional
campaign.
Exports and international operations
Exports and income from international operations rose by 15.3% and totalled EUR
17,633 thousand (EUR 15,289 thousand). Growth continued in all the main markets,
but towards the end of the period, a distinct slowdown was seen in many
countries. The major countries for exports were Sweden, Japan, the United
States, Denmark, Norway and Germany.
In the market area referred to as “the other Nordic countries”, net sales rose
by 21.6% to EUR 7,809 thousand (EUR 6,423 thousand). Sales of clothing and bags
grew substantially, while sales of interior decoration products slowed down
clearly, remaining at the same level as in the comparison period. One-off income
generated in the second quarter by licensing co-operation with H & M Hennes &
Mauritz AB had a significant impact on the growth seen in sales of clothing.
In the market area referred to as “the rest of Europe”, net sales rose by 1.6%
to EUR 3,767 thousand (EUR 3,708 thousand). Sales of bags continued to grow
briskly. Sales of interior decoration products increased slightly, but sales of
clothing fell.
A distinct slowdown of sales growth was seen in North America. Net sales rose by
2.1% to EUR 2,877 thousand (EUR 2,817 thousand). Sales of interior decoration
products and clothing increased slightly, but bag sales experienced a notable
fall.
In the market area referred to as “other countries”, net sales rose by 35.8% to
EUR 3,180 thousand (EUR 2,341 thousand). Vigorous sales growth was seen in all
product lines. Growth was boosted by the opening of new concept stores in
Sapporo, Sendai and Osaka in Japan. At the end of the period, there were a total
of thirteen Marimekko concept stores and shop-in-shops in Japan.
Licensing
Royalty earnings from sales of licensed products rose substantially during the
period. This growth was wholly generated during the second quarter through
royalty income from co-operation with the Swedish company H & M Hennes & Mauritz
AB. In other countries, royalty earnings clearly fell.
Production
During the review period, the production volume of the Herttoniemi textile
printing factory decreased by 5%. This was due to a reduction in the amount of
clothing and bag materials printed in the company's own factory. At the Sulkava
and Kitee factories, production was at the same level as last year.
EARNINGS
July - September
In the July-September period, the Group's operating profit fell by 5.5% on the
comparison period, amounting to EUR 3,747 thousand (EUR 3,965 thousand).
Earnings per share were down to EUR 0.35 (EUR 0.36). Earnings for the period
were hampered by the slowdown of sales growth and increased operating
expenditure.
January - September
In the January-September period of 2008, the Group's operating profit improved
by 14.2% to EUR 8,111 thousand (EUR 7,105 thousand). Operating profit as a
percentage of net sales was 13.7% (13.0%). Marketing expenses for the period
totalled EUR 2,561 thousand (EUR 2,945 thousand), representing 4.3% (5.4%) of
net sales.
The Group's depreciation amounted to EUR 983 thousand (EUR 982 thousand),
representing 1.7% (1.8%) of net sales. Net financial income totalled EUR 13
thousand (net financial expenses: EUR 38 thousand), representing 0.0% (0.1%) of
net sales.
Profit for the period after taxes rose by 14.9% to EUR 6,012 thousand (EUR 5,231
thousand), representing 10.2% (9.6%) of net sales. Earnings per share improved
to EUR 0.75 (EUR 0.65).
In addition to growth in exports, earnings for the period were improved by sales
growth generated by individual promotions in Finland, substantial one-off income
from sales of licensed products, and reduced marketing expenses. Earnings trends
were weakened by increased operating expenses.
INVESTMENTS
The Group's gross investments amounted to EUR 803 thousand (EUR 1,164 thousand),
representing 1.4% (2.1%) of net sales. The major investments included
renovations of the Herttoniemi property, the construction of the store opened in
Turku at the end of August 2008, and acquisition of information management
systems and equipment.
EQUITY RATIO AND FINANCING
Equity ratio was 71.8% at the end of the period (68.1% at 30 September 2007,
72.7% at 31 December 2007). The ratio of interest-bearing liabilities minus
financial assets to shareholders' equity (gearing) was -6.2%, while it was 5.8%
at the end of the corresponding period in 2007 (-15.2% at 31 December 2007).
At the end of the period, the Group's financial liabilities stood at EUR 3,820
thousand (EUR 4,711 thousand). The Group's financing from operations was EUR
6,995 thousand (EUR 6,213 thousand). The Group's financial assets at the end of
the period amounted to EUR 5,704 thousand (EUR 3,147 thousand).
SHARES AND SHARE PRICE TREND
Share capital
At the end of the period, the company's fully paid-up share capital, as recorded
in the Trade Register, amounted to EUR 8,040,000, and the number of shares
totalled 8,040,000.
Shareholdings
According to the book-entry register, Marimekko had 5,967 (5,277) shareholders
at the end of the period. Of the shares, 16.3% were registered in a nominee's
name and 14.8% were in foreign ownership. At the end of the period, the number
of shares owned either directly or indirectly by members of the Board of
Directors and the President of the company was 1,071,089, representing 13.3% of
the total share capital and - taking into account the voting authorisation
granted by Workidea Oy to Muotitila Ltd on 31 October 2007 - 23.3% of the votes
conferred by the company's shares.
The largest shareholders according to the book-entry register on 30 September
2008
Percentage of holding and votes
1. Muotitila Ltd 13.00 *)23.00
2. Fautor S.P.R.L. 10,58 10,58
3. Workidea Oy 10.00 *)0.00
4. ODIN Finland 4.14 4.14
5. Evli Select Fund 1.87 1.87
6. Varma Mutual Employment
Pension Insurance Company 1.34 1.34
7. Ilmarinen Mutual
Pension Insurance Company 0.89 0.89
8. Foundation for
Economic Education 0.62 0.62
9. Miettinen Kari 0.60 0.60
10. Scanmagnetics Oy 0.50 0.50
11. Mutual Fund Tapiola Finland 0.44 0.44
12. Fromond Elsa 0.40 0.40
13. Westerberg Olof 0.37 0.37
14. Karvonen Eero 0.35 0.35
15. Mäki Uolevi 0.34 0.34
Total 45.44 45.44
Nominee-registered 16.34 16.34
Others 38.22 38.22
Total 100.00 100.00
*)Taking into account the voting authorisation granted by Workidea Oy to
Muotitila Ltd on 31 October 2007. Detailed information on the authorisation was
given in the section “Share and Shareholders/Flagging notifications” in
Marimekko's 2007 Annual Report.
Flaggings
Morgan Stanley & Co Incorporated's share of Marimekko Corporation's share
capital and voting rights rose to 5.44%, or 438,083 shares, as a result of a
transaction made on 7 April 2008; and then fell to 0.90%, or 73,083 shares, as a
result of a transaction made on 9 April 2008.
Authorisations
At the end of the review period, the Board of Directors had no valid
authorisations to carry out share issues or issue convertible bonds or bonds
with warrants, or to acquire or surrender Marimekko shares.
Share trading
During the review period, a total of 1,026,776 Marimekko shares were traded,
representing 12.8% of the shares outstanding. The total value of Marimekko's
share turnover was EUR 14,635,869. The lowest price of the Marimekko share was
EUR 11.45, the highest was EUR 18.20, and the average price was EUR 14.23. At
the end of the review period, the final price of the share was EUR 11.90. The
company's market capitalisation on 30 September 2008 was EUR 95,676,000 (EUR
113,042,400 on 30 September 2007, EUR 146,328,000 on 31 December 2007).
PERSONNEL
The number of Marimekko's personnel increased by 2.0% in the January-September
period of 2008. During the period, the number of employees averaged 410 (402).
At the end of the period, the Group employed 409 (406) people, of whom 16 (16)
worked abroad.
CHANGES IN THE COMPANY'S MANAGEMENT
On 1 February 2008, Mika Ihamuotila, Ph.D. (Econ.), became the company's new
president and the following were appointed to the company's Management Group:
Mika Ihamuotila as Chairman with members Thomas Ekström (Chief Financial
Officer), Marja Korkeela (Group communications and investor relations), Päivi
Lonka (exports and licensing sales), Sirpa Loukamo (clothing and accessories),
Mervi Metsänen-Kalliovaara (domestic wholesale, business-to-business sales,
sales development), Piia Rossi (company-owned retail stores), Kirsi Räikkönen
(brand and marketing communications) and Helinä Uotila (production, purchases,
and interior decoration). On 1 August 2008, Niina Nenonen joined the Management
Group and assumed responsibility for the company's clothing portfolio and its
profitability. She continues the work of Sirpa Loukamo, who retired on 1
September 2008.
RISK MANAGEMENT AND MAJOR RISKS
Marimekko's risk management policy and the major risks to the company's business
operations have been detailed in the 2007 Annual Report. During the review
period, uncertainties affecting Marimekko's operating environment increased
because of the rapid weakening of the international economic outlook. Otherwise,
no notable changes in the risks have occurred.
RESEARCH AND DEVELOPMENT
The company's product planning and development costs arise from the design of
collections. Design costs are recorded in expenses.
ENVIRONMENT
Responsibility for the environment and nature is an integral aspect of
Marimekko's business. The co-operation agreements require Marimekko's
subcontractors and other partners to commit themselves to shouldering their
environmental responsibilities. In environmental matters, the company's business
supervision is largely based on legislation and other regulations. Marimekko's
production processes do not generate any waste that is classified as hazardous
waste or detrimental to health. The environmental impacts of production and
other business operations are monitored regularly by testing the materials used
in the products and improving the production processes and methods. During the
financial year 2008, Marimekko has continued the project launched at the end of
2007 to establish a corporate social responsibility management system.
DECISIONS OF THE ANNUAL GENERAL MEETING
Marimekko Corporation's Annual General Meeting, held on 3 April 2008, adopted
the company's financial statements for 2007, discharged the President and
members of the Board from liability and approved the Board of Directors'
proposal for payment of a dividend for 2007 of EUR 0.65 per share, totalling
EUR 5,226,000.00. The record date was 8 April 2008 and the dividend payout date
15 April 2008.
The Annual General Meeting resolved that the company's Board of Directors shall
have five (5) members. Tarja Pääkkönen was re-elected to the Board of Directors.
Ami Hasan, Mika Ihamuotila, Joakim Karske and Pekka Lundmark were elected as new
members. At its organisation meeting held after the Annual General Meeting, the
Board of Directors elected Pekka Lundmark as Chairman and Mika Ihamuotila as
Vice Chairman of the Board. The Board of Directors' term of office runs until
the end of the next Annual General Meeting.
The Annual General Meeting also resolved that the remuneration to the Chairman
of the Board will be EUR 20,000 per year and the remuneration to each one of the
other Board members will be EUR 15,000 per year. In addition, the Annual General
Meeting resolved that the President of Marimekko Corporation will not receive
remuneration for being a member of the Board.
The Annual General Meeting elected PricewaterhouseCoopers Ltd, Authorised Public
Accountants, as the company's auditor, with Kim Karhu, Authorised Public
Accountant, as chief auditor. It was decided that the auditor's fee will be paid
according to invoice.
DISAGREEMENTS CONCERNING UNIKKO TRADEMARK
In a stock exchange release dated 2 July 2008, Marimekko announced that Dolce &
Gabbana S.r.l. and Dolce & Gabbana Industria S.p.A. had submitted an application
to the Office for Harmonisation in the Internal Market (OHIM) for a declaration
of invalidity concerning Marimekko's red figure mark Unikko in classes 24
(Textiles and textile goods) and 25 (Clothing and headgear). During the spring
and summer of 2008, as part of the regular supervision and protection of its
intellectual property rights, Marimekko reacted to Dolce & Gabbana's use of a
floral pattern in certain Dolce & Gabbana products. Marimekko had not authorised
the said use and took action in Germany to terminate such use. On the basis of
Marimekko's application, the District Court of Hamburg imposed a sales and
marketing injunction on certain Dolce & Gabbana products in Germany.
MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD
Flagging
ODIN Forvaltning AS's share of Marimekko Corporation's share capital and voting
rights rose to 5.14%, or 413,253 shares, as a result of a transaction concluded
on 9 October 2008.
Settlement agreement concerning Unikko trademark
In a stock exchange release dated 14 October 2008, Marimekko announced that
Marimekko Corporation, Dolce & Gabbana S.r.l. and Dolce & Gabbana Industria
S.p.A. had signed a settlement agreement concerning the Unikko trademark
dispute, referred to in Marimekko's stock exchange release dated 2 July 2008.
The parties agreed on the handling of already manufactured products and the fee
to be paid to Marimekko. The parties further agreed that they will withdraw all
the legal proceedings concerning the matter, including the invalidity
proceedings at the Office for Harmonisation in the Internal Market (OHIM)
against Marimekko's Unikko trademark.
OUTLOOK FOR THE REMAINDER OF 2008
Marimekko racks up its strongest earnings and net sales growth in the last two
quarters of the financial year. In recent years, exports have increasingly been
driving Marimekko's net sales growth. In Marimekko's field of industry, changes
in the business climate are reflected in consumption demand.
Because of the rapid weakening of the international economic outlook,
Marimekko's business growth outlook is accompanied with a higher level of
uncertainty than before, both in Finland and the export market. This was already
evidenced in the third quarter by slower growth in the number of incoming
orders.
Nevertheless, based on current business estimates, the forecast for 2008 remains
unchanged: the Group's net sales growth and relative profitability for 2008 are
expected to remain at 2007 levels. Growth and earnings trends for the remainder
of 2008 will be supported by a substantial promotional delivery in Finland and
the opening of two new Marimekko concept stores in Japan. Sales trends in
Marimekko's own retail stores will have a substantial impact on the Group's net
sales and earnings in the final quarter of the year. Because of the
uncertainties in the business environment resulting from the weaker economic
outlook, sales trends for the last quarter are difficult to predict.
Helsinki, 5 November 2008
MARIMEKKO CORPORATION
Board of Directors
GENERAL CLAUSE
This interim report contains forward-looking statements that are based on the
factors and assumptions currently available to Marimekko's management as well as
on the company's current decisions and plans. Forward-looking statements contain
assumptions that are subject to uncertainties. Actual results may therefore
deviate substantially from these assumptions. Uncertainty factors include
changes in general economic trends, the market situation, competition, currency
exchange rates and the company's own business operations.
APPENDICES TO THE INTERIM REPORT
Consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key indicators
Consolidated net sales by market area and product line
Segment information
Quarterly trend in net sales and earnings
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
NET SALES 21,913 20,699 59,046 54,608 77,264
Other operating
income 17 21 41 56 74
Increase or decrease
in inventories of
completed and
unfinished products -528 204 2,036 1,128 642
Raw materials and
consumables 8,749 8,625 25,500 22,670 31,626
Employee benefit
expenses 3,946 3,745 13,154 11,985 16,799
Depreciation 328 327 983 982 1,338
Other operating
expenses 4,632 4,262 13,375 13,050 17,730
OPERATING PROFIT 3,747 3,965 8,111 7,105 10,487
Financial income 52 34 153 116 153
Financial expenses -53 -68 -140 -154 -198
-1 -34 13 -38 -45
PROFIT BEFORE TAXES 3,746 3,931 8,124 7,067 10,442
Income taxes 971 1,019 2,112 1,836 2,725
NET PROFIT FOR
THE PERIOD 2,775 2,912 6,012 5,231 7,717
Distribution
To equity holders of
the parent company 2,775 2,912 6,012 5,231 7,717
Basic and diluted
earnings per share
calculated on the
profit attributable
to equity holders of
the parent
company, EUR 0.35 0.36 0.75 0.65 0.96
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 30.9.2008 30.9.2007 31.12.2007
ASSETS
NON-CURRENT ASSETS
Tangible assets 9,807 10,242 9,956
Intangible assets 380 279 411
Available-for-sale
investments 20 20 20
10,207 10,541 10,387
CURRENT ASSETS
Inventories 18,958 17,785 18,281
Trade and other
receivables 7,309 7,771 5,533
Current tax assets 220 325 220
Cash and cash equivalents 5,704 3,147 6,269
32,191 29,028 30,303
ASSETS, TOTAL 42,398 39,569 40,690
SHAREHOLDERS' EQUITY
AND LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT COMPANY
Share capital 8,040 8,040 8,040
Translation differences 17 3 3
Retained earnings 22,138 18,866 21,352
Shareholders' equity, total 30,195 26,909 29,395
NON-CURRENT LIABILITIES
Deferred tax liabilities 712 644 676
Financial liabilities 185 370 185
897 1,014 861
CURRENT LIABILITIES
Trade and other payables 7,659 7,305 8,810
Current tax liabilities 12 - 18
Financial liabilities 3,635 4,341 1,606
11,306 11,646 10,434
Liabilities, total 12,203 12,660 11,295
SHAREHOLDERS' EQUITY AND
LIABILITIES, TOTAL 42,398 39,569 40,690
The Group has no liabilities resulting from derivative contracts, and there are
no outstanding guarantees or any other contingent liabilities which have been
granted on behalf of the management of the company or its shareholders.
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1-9/2008 1-9/2007 1-12/2007
CASH FLOW FROM OPERATING
ACTIVITIES
Net profit for the period 6,012 5,231 7,717
Adjustments
Depreciation according to plan 983 982 1,338
Financial income and expenses -13 38 45
Taxes 2,113 1,836 2,725
Cash flow before change
in working capital 9,095 8,087 11,825
Change in working capital -3,596 -4,098 -598
Cash flow from operating
activities before
financial items and taxes 5,499 3,989 11,227
Paid interest and payments
on other financial expenses -132 -141 -207
Interest received 168 141 150
Taxes paid -2,101 -2,309 -3,094
CASH FLOW FROM
OPERATING ACTIVITIES 3,434 1,679 8,076
CASH FLOW FROM
INVESTING ACTIVITIES
Investments in tangible
and intangible assets -803 -1,164 -1,519
CASH FLOW FROM
INVESTING ACTIVITIES -803 -1,164 -1,519
CASH FLOW FROM
FINANCING ACTIVITIES
Short-term loans drawn 4,600 4,000 4,150
Short-term loans repaid -2,100 -1,400 -4,000
Long-term loans repaid -470 -471 -941
Finance leasing debts paid - -60 -60
Dividends paid -5,226 -5,226 -5,226
CASH FLOW FROM
FINANCING ACTIVITIES -3,196 -3,157 -6,077
Change in cash and
cash equivalents -565 -2,642 480
Cash and cash equivalents
at the beginning of the period 6,269 5,789 5,789
Cash and cash equivalents
at the end of the period 5,704 3,147 6,269
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Equity attributable to equity holders of the parent company
(EUR 1,000) Shareholders'
Share Translation Retained equity,
capital differences earnings total
Shareholders'
equity
1 Jan. 2007 8,040 18,861 26,901
Translation
differences 3 3
Net profit for
the period 5,231 5,231
Dividends paid -5,226 -5,226
Shareholders'
equity
30 Sept. 2007 8,040 3 18,866 26,909
Shareholders'
equity
1 Jan. 2008 8,040 3 21,352 29,395
Translation
differences 14 14
Net profit for
the period 6,012 6,012
Dividends paid -5,226 -5,226
Shareholders'
equity
30 Sept. 2008 8,040 17 22,138 30,195
KEY INDICATORS
1-9/ 1-9/ Change, % 1-12/
2008 2007 2007
Earnings per share, EUR 0.75 0.65 14.9 0.96
Equity per share, EUR 3.75 3.35 12.2 3.66
Share of exports and
international operations,
% of net sales 29.9 28.0 26.5
Return on equity (ROE), % 26.9 25.9 27.4
Return on investment
(ROI), % 33.8 31.5 35.0
Equity ratio, % 71.8 68.1 72.7
Gross investments,
EUR 1,000 803 1,164 -30.9 1,365
Gross investments,
% of net sales 1.4 2.1 1.8
Contingent liabilities,
EUR 1,000 16,843 13,957 20.7 18,710
Average personnel 410 402 2.0 405
Personnel at the end
of the period 409 406 0.7 411
Number of shares
at the end of
the period (1,000) 8,040 8,040 8,040
Number of shares
outstanding,
average (1,000) 8,040 8,040 8,040
Earnings per share (EPS), EUR:
(Profit before extraordinary items - taxes (excl. of taxes on extraordinary
items)) / Number of shares (average for the financial period)
Equity per share, EUR:
Shareholders' equity / Number of shares, 30 Sept.
Return on equity (ROE), %:
(Profit before extraordinary items - taxes (excl. of taxes on extraordinary
items)) X 100 / Shareholders' equity (average for the financial period)
Return on investment (ROI), %:
(Profit before extraordinary items + interest and other financial expenses) X
100 / (Balance sheet total - non-interest-bearing liabilities (average for the
financial period))
Equity ratio, %:
Shareholders' equity X 100 / (Balance sheet total - advances received)
Gearing, %:
Interest-bearing net debt X 100 / Shareholders' equity
NET SALES BY MARKET AREA AND PRODUCT LINE
BY MARKET AREA, JULY-SEPTEMBER
(EUR 1,000) 7-9/2008 7-9/2007 Change, % 1-12/2007
Finland 15,776 14,876 6.1 56,826
Other Nordic countries 2,561 2,558 0.1 8,581
Rest of Europe 1,316 1,284 2.5 4,725
North America 964 1,104 -12.7 4,067
Other countries 1,296 877 47.8 3,065
TOTAL 21,913 20,699 5.9 77,264
BY PRODUCT LINE, JULY-SEPTEMBER
(EUR 1,000) 7-9/2008 7-9/2007 Change, % 1-12/2007
Clothing 8,016 7,797 2.8 30,036
Interior decoration 9,847 9,367 5.1 35,813
Bags 4,050 3,534 14.6 11,415
TOTAL 21,913 20,699 5.9 77,264
BY MARKET AREA, JANUARY-SEPTEMBER
(EUR 1,000) 1-9/2008 1-9/2007 Change, % 1-12/2007
Finland 41,413 39,319 5.3 56,826
Other Nordic countries 7,809 6,423 21.6 8,581
Rest of Europe 3,767 3,708 1.6 4,725
North America 2,877 2,817 2.1 4,067
Other countries 3,180 2,341 35.8 3,065
TOTAL 59,046 54,608 8.1 77,264
BY PRODUCT LINE, JANUARY-SEPTEMBER
(EUR 1,000) 1-9/2008 1-9/2007 Change, % 1-12/2007
Clothing 23,367 22,900 2.0 30,036
Interior decoration 24,812 23,194 7.0 35,813
Bags 10,867 8,514 27.6 11,415
TOTAL 59,046 54,608 8.1 77,264
SEGMENT INFORMATION
(EUR 1,000) 1-9/2008 1-9/2007 Change, % 1-12/2007
Net sales
Finland 41,413 39,319 5.3 56,826
Other countries 17,633 15,289 15.3 20,438
Total 59,046 54,608 8.1 77,264
Assets
Finland 42,108 37,709 39,094
Other countries 2,056 1,860 2,469
Eliminations -1,766 -1,804 -873
Total 42,398 39,569 40,690
Investments
Finland 803 1,102 1,303
Other countries - 62 62
Total 803 1,164 1,365
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/
2008 2008 2008 2007
Net sales 21,913 18,539 18,594 22,656
Operating profit 3,747 2,540 1,824 3,382
Earnings per share, EUR 0.35 0.23 0.17 0.31
(EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/
2007 2007 2007 2006
Net sales 20,699 16,997 16,912 20,142
Operating profit 3,965 1,643 1,497 3,776
Earnings per share, EUR 0.36 0.15 0.14 0.35
