Published: 2010-02-03 08:45:00 CET
Marimekko Oyj
Financial Statement Release
MARIMEKKO CORPORATION'S FINANCIAL STATEMENT BULLETIN, 1 January - 31 December 2009
Marimekko Corporation        FINANCIAL STATEMENT BULLETIN                      

                             3 February 2010 at 9 a.m.                       
  

MARIMEKKO CORPORATION'S FINANCIAL STATEMENT BULLETIN,                    
      
1 January - 31 December 2009                                           
        

In 2009, the Marimekko Group's net sales fell by 10.7% to EUR 72.5
million      
(EUR 81.1 million). Operating profit fell to EUR 6.3 million
(EUR 10.0 million).
Operating profit without non-recurring items amounted to
EUR 6.8 million        
(EUR 10.0 million). Profit after taxes for the
financial year was EUR 4.7       
million (EUR 7.4 million) and earnings per
share were EUR 0.59 (EUR 0.92). Cash 
flow from operating activities was
EUR 9.9 million (EUR 8.0 million). The Board 
of Directors will propose to the
Annual General Meeting that a dividend of      
EUR 0.45 (EUR 0.55) per share
be paid for 2009. The Marimekko Group's net sales 
and operating profit for
2010 are expected to be approximately at the same level
as in 2009.           
                                                         

                  
                      1-12/     1-12/   Change,              
                
                         2009     2008          %              

Net sales,
EUR 1,000                    72,473    81,107     -10.7              
Share of
exports and international                                              

operations, % of net sales               27.3      27.0                       

Operating profit, EUR 1,000              6,291     9,956     -36.8           
  
Operating profit without                                                   
    
 non-recurring items, EUR 1,000          6,803     9,956     -31.7       
      
Profit before taxes, EUR 1,000           6,354     9,964     -36.2     
        
Profit for the financial year,                                       
          
 EUR 1,000                               4,701     7,378     -36.3 
            
Earnings per share, EUR                   0.59      0.92    
-35.9              
Equity per share, EUR                     3.96      3.92  
    1.0              
Return on equity (ROE), %                 14.8      24.2
                       
Return on investment (ROI), %             20.1     
32.3                        
Equity ratio, %                           77.7   
  78.7                        

Mika Ihamuotila, President and CEO:          
                                  

“The year 2009 was exceptionally
challenging for the industry and for Marimekko 
as well. The sharp decline in
consumer demand decreased our sales both in       
Finland and abroad.
However, we managed to achieve passable earnings and a      
strong cash flow.
In the last quarter of 2009, our operating result improved    
clearly on the
previous year. Full-year earnings were adversely affected by    

non-recurring expenses related to personnel reductions and the fact that
royalty
income and revenues from promotions were lower than the year before.
We adjusted
our operations to the reduced demand, and the decrease in
profitability slowed  
down. We are confident that the implemented
reorganisation of functions and     
enhanced efficiency of operations will
improve our chances for growth in the    
coming years.                       
                                           

Despite the difficult market
conditions, we purposefully guided the company     
forward in the direction
set by our long-term strategy. In 2009, six new        
Marimekko concept
stores opened abroad: five in Japan and one in Copenhagen,    
Denmark.
Marimekko acquired the ownership of the London concept store in April. 
The
Marimekko shops in Stockholm and the Helsinki-Vantaa airport were          

refurbished and expanded, and one of the two Tampere shops moved to new      
  
premises. We complemented our collections with new product categories, and 
    
successfully launched new products where our own product design is
combined with
Marimekko's renowned, powerful patterns.                        
               

Some weak signs of a turn for the better are visible, but we
expect the market  
conditions to remain challenging this year as well.
Nevertheless, we will       
continue our long-term input into product
development and building international
growth. In geographical terms, we will
mainly focus on countries where our brand
is already well-known. We are also
planning to explore some new market areas. I 
would like to thank our loyal
customers for the support we have received and our
staff for doing an
excellent job in extremely challenging market conditions.”   
                
                                                               
Financial
calendar 2010                                                         
The
Annual Report for 2009 will be published in week 12. The Annual General    

Meeting will be held on Thursday, 15 April 2010 at 2 p.m. The following
interim 
reports will be published in 2010: January to March, on Thursday 6
May 2010 at  
9 a.m.; January to June, on Thursday 12 August 2010 at 9 a.m.;
and January to   
September, on Thursday 4 November 2010 at 9 a.m.            
                   

Annual summary 2009 and releases                        
                       
A summary of Marimekko's stock exchange releases and
other significant releases 
published during the financial year 2009 is 
available on the company's website 
at www.marimekko.com, in the section
Investors/Financial Releases/Summary of    
Significant Releases. All of the
company's stock exchange releases are available
in the section
Investors/Releases.                                              

For
additional information, please contact:                                    

Mika Ihamuotila, President and CEO, tel. +358 9 758 71                       
  
Thomas Ekström, CFO, tel. +358 9 758 7261                                  
    

MARIMEKKO CORPORATION                                                  
        
Group Communications                                                 
          

Piia Pakarinen                                                   
              
Tel. +358 9 758 7293                                           
                
Fax +358 9 755 3051                                          
                  
E-mail: piia.pakarinen@marimekko.fi                        
                    

DISTRIBUTION:                                          
                        
NASDAQ OMX Helsinki Ltd                              
                          
Principal media                                    
                            
Marimekko's website www.marimekko.com            
                              

Marimekko, established in 1951, is a leading
Finnish textile and clothing design
company renowned for its original prints
and colours. The company designs and   
manufactures high-quality clothing,
interior textiles, bags and other           
accessories. Marimekko products
are sold in over 40 countries. Products with    
Marimekko designs are also
manufactured under licence in various countries. In  
2009, the company's net
sales amounted to EUR 72.5 million, of which exports and
international
operations accounted for 27.3%. The Group employs about 370       
people. The
company's share is quoted on the NASDAQ OMX Helsinki Ltd.          



MARIMEKKO CORPORATION'S FINANCIAL STATEMENT BULLETIN,                    
      
1 January - 31 December 2009                                           
        

MARKET SITUATION                                                   
            

The first signs of a change in the world economy were seen
towards the end of   
2009. In Finland, the outlook for the whole economy was
still cautious, but an  
end to the downtrend and an upward turn in retail
sales were visible.           
(Confederation of Finnish Industries EK: 
Business Tendency Survey, November    
2009 and Economic Review, 21 January
2010). Consumers' confidence in the Finnish
economy was stronger than average
in January, but people still felt insecure    
about their own employment
prospects. (Statistics Finland: Consumer Barometer,  
January 2010). In 2009,
the value of retail sales in Finland fell by 2.6%       
(Statistics Finland:
Retail trade quick estimate, December 2009). From January  
to November 2009,
retail sales of clothing (excluding sportswear) fell by 2.6%  
(Textile and
Fashion Industries TMA). Sales of womenswear fell by 1.8%, sales of
menswear
by 5.0%, and sales of childrenswear by 1.2%. Sales of bags decreased by
10.0%.
In the January-November period of 2009, exports of clothing (SITC 84)    
fell
by 17% and imports by 10%; exports of textiles (SITC 65) declined by 24%  

and imports by 23% (National Board of Customs, monthly review, November
2009).  

NET SALES                                                          
            

Financial year 2009                                            
                
In 2009, the Marimekko Group's net sales decreased by 10.7%
to EUR 72,473       
thousand (EUR 81,107 thousand). Net sales in Finland fell
by 10.9% to EUR 52,711
thousand (EUR 59,175 thousand). Exports and income from
international operations
declined by 9.9%, totalling EUR 19,762 thousand (EUR
21,932 thousand). Exports  
and income from international operations accounted
for 27.3% (27.0%) of the     
Group's net sales. The fall in net sales was
largely due to a slowdown in demand
caused by weak market conditions.
Wholesale sales both in Finland and abroad    
were especially affected by the
slowdown. The difference to the comparison      
period was also increased by
income from sales of licensed products and revenues
from individual promotions
that were larger in 2008 than in the year under      
review. The six new
concept stores that opened during the year increased        
wholesale sales
abroad.                                                         

The
breakdown of the Group's net sales by product line was as follows: clothing

37.9%, interior decoration 45.1%, and bags 17.0%. Net sales by market area
were:
Finland 72.7%, the other Nordic countries 9.7%, the rest of Europe 6.7%,
North  
America 4.1%, and other countries (Japan and other regions outside
Europe and   
North America) 6.8%.                                            
               

In 2009, sales by Marimekko's own retail shops in Finland
fell by 1.4% compared 
with 2008. Sales to retailers in Finland declined by
13.9%; the decrease was    
partly attributable to significant deliveries for
promotions in 2008, larger    
than orders for promotions during the year
under review.                        

4Q of 2009                            
                                         
In the October-December period of
2009, the Marimekko Group's net sales fell by 
6.1% to EUR 20,719 thousand
(EUR 22,061 thousand). In Finland, net sales        
declined by 6.9% to EUR
16,538 thousand (EUR 17,762 thousand). Deliveries for   
promotions were at
the level of the previous year. Exports and income from      
international
operations fell by 2.7%, totalling EUR 4,181 thousand (EUR 4,299  
thousand).
The six new concept stores that opened during the year increased     
foreign
wholesale sales for the period.                                        


REVIEWS BY BUSINESS UNIT                                                   
    

Clothing                                                               
        
In 2009, net sales of clothing decreased by 8.1% to EUR 27,466
thousand         
(EUR 29,898 thousand). Japan showed vigorous growth, and
sales also increased   
slightly in the market area referred to as “the rest
of Europe”. In Finland,    
sales fell somewhat. Sales decreased notably in
North America and in the market 
area referred to as “the other Nordic
countries”, where the fall was partly     
attributable to the significant
income from sales of licensed products that was 
recognised in the second
quarter of 2008. Exports and income from international 
operations accounted
for 23.1% of net sales of clothing.                        

Interior
decoration                                                             
Net
sales of interior decoration products fell by 13.4% to EUR 32,687 thousand 

(EUR 37,747 thousand). Sales in Japan grew, while other export markets and   
  
Finland registered a decline in sales. In Finland, the decrease was partly
due  
to the fact that revenues from individual promotions were larger in 2008
than in
the year under review. Exports and income from international
operations         
accounted for 29.5% of net sales of interior decoration
products.               

Bags                                               
                            
Net sales of bags fell by 8.5% to EUR 12,320
thousand (EUR 13,462 thousand).    
Sales grew well in Japan and the market
area referred to as “the rest of        
Europe”. In North America and the
market area referred to as “the other Nordic  
countries”, sales declined
substantially. Sales in Finland fell somewhat; the   
decrease was almost
entirely attributable to income from a significant promotion
in 2008. Exports
and income from international operations accounted for 30.7% of
net sales of
bags.                                                             


Business-to-business sales                                                 
    
Business-to-business sales fell by 51.2%. The decrease was partly due to 
      
significant deliveries for promotions in 2008, larger than orders for
promotions
during the year under review. In addition, the poor economic
conditions in 2009 
significantly reduced purchases by corporate customers.   
                     

Exports and international operations                  
                         
Uncertain economic conditions prevailed in 2009.
Consumer demand decreased, and 
customers were cautious about making
purchases. A slight recovery was           
perceptible towards the end of the
year, but the hoped-for turn for the better  
was not realised. In 2009,
Marimekko's exports and income from international    
operations decreased by
9.9%, totalling EUR 19,762 thousand (EUR 21,932         
thousand). Sales
trends varied greatly by country. Japan showed vigorous growth,
while sales
increased slightly in the market area referred to as “the rest of   
Europe”.
In other export markets, sales fell markedly. The major countries for 

exports were Japan, Sweden, the United States, Denmark and Germany.          
  

In the market area referred to as “the other Nordic countries”, sales in
all    
product lines decreased considerably. Net sales fell to EUR 7,042
thousand,     
which was 25.3% less than the previous year (EUR 9,423
thousand). In addition to
a decrease in sales volumes, the weakening of the
Swedish krona (by about 20%)  
as well as significant income generated from
sales of licensed products in the  
second quarter of 2008 contributed to the
fall in net sales.                    

In the market area referred to as
“the rest of Europe”, net sales rose by 2.6%  
to EUR 4,821 thousand (EUR
4,700 thousand). Sales of bags showed good growth;   
clothing sales grew
slightly. Sales of interior decoration products fell        
somewhat. The
growth in net sales was attributable to the transfer of the       
Marimekko
shop in London to Marimekko's ownership.                              

In
North America, net sales fell by 24.8% to EUR 3,003 thousand (EUR 3,994     

thousand). Bag and clothing sales declined very sharply; sales of interior   
  
decoration products fell slightly.                                         
    

In the market area referred to as “other countries”, net sales rose by
28.3% to 
EUR 4,896 thousand (EUR 3,815 thousand). The growth was generated by
Japan,     
mainly by the five new concept stores opened during the year.
Sales of clothing 
and bags, in particular, grew extremely vigorously. At the
end of the year,     
there were a total of twenty Marimekko concept stores
and shop-in-shops in      
Japan.                                             
                            

Licensing                                      
                                
Royalty earnings from sales of licensed
products fell considerably during 2009. 
The fall was mainly due to
significant income from licensing cooperation with H 
& M Hennes & Mauritz AB,
recognised in the second quarter of 2008. Royalty      
earnings grew somewhat
in Finland and fell slightly in the United States.       

Production and
sourcing                                                         
The output
of the Herttoniemi textile printing factory decreased by 21% in 2009.
This was
due to the reduction of inventories and a decrease in sales. After the 
old
printing machine was taken out of use in June, production capacity         

diminished and was in full use. To ensure employment, subcontract manufacture
of
some products was reduced and their production transferred to the Kitee and
    
Sulkava factories. The changes to the production structure and the
personnel    
reductions implemented during the last quarter of the year
improved the         
competitiveness of Marimekko's own production units and
the profitability of    
operations. In 2009, the production volume of the
Sulkava factory was at the    
same level as in the previous year; the output
of the Kitee factory fell        
slightly.                                   
                                   

EARNINGS                                
                                       

Financial year 2009                 
                                           
In 2009, the Group's operating
profit fell by 36.8% to EUR 6,291 thousand       
(EUR 9,956 thousand).
Operating profit as a percentage of net sales amounted to 
8.7% (12.3%).
Operating profit includes a non-recurring expense of EUR 512      
thousand
related to personnel reductions resulting from savings and efficiency 

actions. Operating profit without non-recurring items stood at EUR 6,803     
  
thousand (EUR 9,956 thousand).                                             
    

Operating profit was decreased by a sharp decline in sales. The
difference to   
the comparison period was also increased by significant
income from sales of    
licensed products in the previous year and the fact
that revenues from          
individual promotions were larger in 2008 than in
the year under review.        
Furthermore, increased lease expenses from
shops had a negative impact on       
profitability. On the other hand,
savings of about EUR 600 thousand in fixed    
costs were achieved through
efficiency enhancements and various savings actions.

The Group's marketing
expenses for the year totalled EUR 3,137 thousand         
(EUR 3,398
thousand), representing 4.3% (4.2%) of net sales.                    

The
Group's depreciation amounted to EUR 1,394 thousand (EUR 1,324 thousand),  

representing 1.9% (1.6%) of net sales. Net financial income totalled EUR 63  
  
thousand (EUR 8 thousand), or 0.1% (0.0%) of net sales.                    
    

Profit after taxes for the financial year decreased by 36.3% to EUR
4,701       
thousand (EUR 7,378 thousand), representing 6.5% (9.1%) of net
sales. Earnings  
per share were EUR 0.59 (EUR 0.92).                         
                   

4Q of 2009                                              
                       
In the October-December period of 2009, the Marimekko
Group's operating profit  
grew by 27.5% on the comparison period, amounting
to EUR 2,353 thousand         
(EUR 1,845 thousand). Revenues from promotions
were at the same level as in the 
previous year. As a result of efficiency
enhancement actions and various savings
measures, costs declined from the
corresponding period of 2008. Earnings were   
also improved due to the fact
that, in the last quarter of 2008, the rapid      
decline in market
conditions was already visible as a sharp fall in sales in    
Finland and
abroad. Earnings per share were EUR 0.22 (EUR 0.17).               


INVESTMENTS                                                                
    

The Group's gross investments amounted to EUR 1,202 thousand (EUR 1,362
        
thousand), representing 1.7% (1.7%) of net sales. The majority of
investments   
were directed at the refurbishment of shops and the renovation
of the           
Herttoniemi facilities.                                     
                   

EQUITY RATIO AND FINANCING                              
                       

The Group's equity ratio was 77.7% at the end of the
period (78.7% on           
31 December 2008). The ratio of interest-bearing
liabilities minus financial    
assets to shareholders' equity (gearing)
was -32.2%, while it was -18.8% at the 
end of the previous year.             
                                         

At the end of the year, the
Group's financial liabilities stood at EUR 0        
(EUR 185 thousand). The
Group's financial assets at the end of the financial    
year amounted to EUR
10,245 thousand (EUR 6,112 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 6,716
(6,351) shareholders  
at the end of the period. Of the shares, 13.8% were
registered in a nominee's   
name and 18.0% were in foreign ownership. At the
end of 2009, the number of     
shares owned either directly or indirectly by
members of the Board of Directors 
and the President of the company was
1,087,340, representing 13.5% of the total 
share capital and of the votes
conferred by the company's shares.               

The largest shareholders
according to the book-entry register on 31 December    
2009                  
                                                         
                    
                 Number of      Percentage of              
                  
                  shares and        holding and              
                
                         votes              votes              

1. 
Muotitila Ltd                     1,045,200              13.00             

2.  Semerca Investment Ltd              850,377              10.58           
  
3.  ODIN Finland                        406,284               5.05         
    
4.  Varma Mutual Employment                                              
      
    Pension Insurance Company           385,920               4.80     
        
5.  Ilmarinen Mutual                                                 
          
    Pension Insurance Company           265,419               3.30 
            
6.  Veritas Pension Insurance Company   220,000              
2.74              
7.  Nordea Nordenfonden                 173,506            
  2.16              
8.  Sairanen Seppo                       71,379          
    0.89              
9.  Nacawi Ab                            60,300        
      0.75              
10. Mutual Fund Tapiola Finland          57,455      
        0.71              
11. Foundation for Economic Education    50,000    
          0.62              
12. Scanmagnetics Oy                     40,000  
            0.50              
13. Nordea Nordic Small Cap Fund         38,904
              0.48              
14. Haapanala Auvo                      
33,000               0.41              
15. Fromond Elsa                      
  32,200               0.40              
Total                               
 3,729,944              46.39              
Nominee-registered                
   1,105,593              13.75              
Others                          
     3,204,463              39.86              
Total                         
       8,040,000             100.00              

Flaggings                 
                                                     
The share of Workidea
Oy, a company controlled by Kirsti Paakkanen, of Marimekko
Corporation's share
capital and voting rights decreased to 0.00%, or 0 shares,  
as a result of a
transaction made on 8 January 2009.                            

As a result
of a transaction made on 8 April 2009, Barclays Capital Securities  
Limited's
share of Marimekko Corporation's share capital and voting rights rose 
to
6.09%, or 490,00 shares; and then fell to 0.00%, or 0 shares, as a result of

a transaction made on 14 April 2009.                                         
  

Fautor S.P.R.L's share of Marimekko Corporation's share capital and
voting      
rights fell to 0.00%, or 0 shares, as a result of a transaction
concluded on    
18 June 2009. Semerca Investments S.A.'s share of Marimekko
Corporation's share 
capital and voting rights rose to 10.58%, or 850,377
shares, as a result of a   
transaction concluded on 18 June 2009. According
to Marimekko Corporation's     
knowledge, Semerca Investments S.A. is the
parent company of Fautor S.P.R.L.    

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              
                                                    
In 2009, a total of
1,620,304 Marimekko shares were traded, representing 20.2%  
of the shares
outstanding. The total value of Marimekko's share turnover was   

EUR 15,104,869. The lowest price of the Marimekko share was EUR 7.50, the    
  
highest was EUR 11.44, and the average price was EUR 9.70. At the end of
the    
year, the final price of the share was EUR 10.30. The company's market
         
capitalisation on 31 December 2009 was EUR 82,812,000
(EUR 67,134,000 on        
31 December 2008).                                 
                            

PERSONNEL                                      
                                

In 2009, the number of employees averaged
400 (411). At the end of the year, the
Group employed 370 (414) people, of
whom 17 (16) worked abroad.                 

RISK MANAGEMENT AND MAJOR RISKS
                                                

Risk management is an
integral element of the company's management and          
decision-making
process, covering all of the Group's functions. Risk           

identification builds on Marimekko's strategic and operational objectives.
The  
company's Board of Directors has confirmed the principles,
responsibilities and 
organisation of risk management. The Board of Directors
also monitors the       
success of risk management. According to its risk
management principles,        
Marimekko classifies its risks as strategic,
operational, economic and accident 
risks. Risk reporting is part of the
company's regular reporting.               
                                  
                                             
The risk factors described below
may have a harmful impact on the company's     
shareholder value, business,
or financial standing. However, other risks which  
Marimekko is currently not
aware of or which are not currently considered major,
may become significant
in the future.                                           
                    
                                                           
Key strategic
risks assessed by Marimekko are associated with the general       
economic
development and the consequent increased uncertainty in the operating 

environment. Trends in the world economy affect consumers' purchasing
behaviour 
and buying power in all of the company's market areas. The decline
in consumer  
demand has affected sales trends, which has an adverse impact on
the company's  
growth and earnings outlook. Marimekko is going through a
phase of intensive    
change and the company has a number of development
projects in progress. In     
2009, the company's functions were reorganised
and the efficiency of its        
operations was enhanced. There were
personnel changes in Marimekko's executive  
management, as well as in areas
of core expertise with key significance to the  
company's business. The
company's ability to develop and commercialise new      
products that meet
consumers' expectations has an impact on the company's sales 
and
profitability. The management and monitoring of change and ensuring        

sufficient core expertise are emphasised in risk management.                 
  
                                                                           
    
Among the company's operational risks, the key factor is the operational 
      
reliability of procurement and logistics processes. The share of
in-house       
production has diminished, and Marimekko uses subcontractors
to an increasing   
extent. Therefore, the company's dependence on the supply
chain has increased.  
Any delays or disturbances in supply may have a
temporary harmful impact on     
business. In 2009, the company conducted a
procurement process risk analysis    
aimed at identifying key risk areas from
the perspective of the efficiency of   
operations, the correctness of
financial reporting, compliance with laws and    
regulations, and prevention
of malpractice. Control points and responsibilities 
were determined in order
to take notice of any realisation of risks and to take 
preventive action.
Risks are managed by improving the disturbance tolerance of  
the procurement
process and by training purchasing staff. The company is        
continuously
developing the availability of key products and alternative       

procurement channels, the operational efficiency of procurement, the
competence 
of the purchasing staff and the comprehensiveness and
functionality of          
reporting.                                         
                            
                                                 
                              
Among the company's financial risks, those
related to the structure of sales,   
the price trends for factors of
production, customers' liquidity and changes in 
exchange rates may have an
impact on the company's financial status. A number of
raw materials are used
to manufacture Marimekko products, the most important    
being cotton. Sudden
changes in the prices of raw materials may have an impact  
on the company's
earnings. The company protects itself against credit risks     
related to
trade receivables by continuously monitoring its customers' credit   
limits,
credit history and financial situation. Credit risks are also reduced by
means
of advance payments, bank guarantees and letters of credit. In 2009, no  

significant changes took place in credit losses or the customers' payment    
  
behaviour. The company's main invoicing and purchasing currency is the
euro. The
other significant invoicing currencies are the Swedish krona and the
US dollar. 
Marimekko protects itself against foreign currency risks of sales
by taking     
exchange rate fluctuations into account when pricing its
products. In 2009,     
changes in exchange rates did not have any material
effect on the company's     
business. In 2009, Marimekko identified and
assessed risk areas related to the  
Group's financial reporting process, in
particular. Control objectives and      
Group-level control points were
defined for the risks identified. In order to   
avoid the realisation of
risks, the company has enhanced the effectiveness of   
business activity
monitoring and especially that of cost management.            
               
                                                                
The company
strives to minimise its accident risks by means of labour protection
and
security training, as well as operating procedures concerning work and     

working methods. Group companies have taken out policies to insure their     
  
personnel, assets and operations. The scope, insurance value and excess
amount  
of the policies are reviewed annually with the insurance companies.  
          

RESEARCH AND DEVELOPMENT                                         
              

Marimekko's product planning and development costs arise from
the design of     
collections. Design costs are recorded in expenses.        
                    

THE ENVIRONMENT, HEALTH AND SAFETY                     
                        

Responsibility for the environment and nature is an
integral aspect of          
Marimekko's business. In environmental matters,
the company's business          
supervision is largely based on legislation
and other regulations. The          
Herttoniemi textile printing factory has
a valid environmental permit and the   
production operations comply with its
terms. Marimekko's production processes do
not generate any waste that is
classified as hazardous or detrimental to health.
In the interest of
monitoring the environmental impact of production and other  
business
operations, the company develops its operating models and conducts    

regular tests on the materials used in the products. Cooperation agreements  
  
require Marimekko's subcontractors and other partners to commit themselves
to   
shouldering their environmental responsibilities. The company seeks to
save     
energy by developing its production methods, investing in
energy-efficient      
machinery and equipment, and monitoring energy
consumption.                     

In 2009, Marimekko continued the long-term
development of a corporate social    
responsibility management system. The
company has chosen procurement, design,   
production and quality control,
warehousing, distribution and logistics as the  
key areas for the next few
years. Marimekko's Annual Report contains a more     
extensive report on
environmental, health and safety issues. A summary is also  
included in each
interim report. The Group applies the Global Reporting         
Initiative
(GRI) reporting framework's G3 guidelines.                           

A
SUBSIDIARY AND A COMPANY-OWNED SHOP IN GREAT BRITAIN                         


The business of the Marimekko shop in London was acquired from Skandium Ltd
on  
1 April 2009. The shop's operations are managed by Marimekko UK Ltd, a   
      
subsidiary established in the United Kingdom at the end of March 2009. 
        

DECISIONS OF THE ANNUAL GENERAL MEETING                            
            

Marimekko Corporation's Annual General Meeting, held on 8 April
2009, adopted   
the company's financial statements for 2008 and discharged
the President and    
members of the Board from liability. The Annual General
Meeting approved the    
Board of Directors' proposal for a dividend payment
of EUR 0.55 per share for   
the 2008 financial year, totalling EUR
4,422,000.00. The dividend payout record 
date was 15 April 2009, and the
dividend payout date 22 April 2009.             

The Annual General Meeting
confirmed that the company's Board of Directors shall
have five (5) members.
Ami Hasan, Mika Ihamuotila, Joakim Karske, Pekka         
Lundmark, and Tarja
Pääkkönen were re-elected as members of the Board of        
Directors. The
term of office for the Board of Directors runs until the end of  
the next
Annual General Meeting. 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 Annual General Meeting re-elected PricewaterhouseCoopers Oy,
Authorised     
Public Accountants, as the company's regular auditor, with Kim
Karhu, Authorised
Public Accountant, as chief auditor. It was decided that the
auditor's fee would
be paid as per invoice.                                   
                     

Amendment of the Articles of Association              
                         
The Annual General Meeting approved the Board of
Directors' proposal to amend   
the Articles 3, 4, 5, 6, 8, 9, 11, 12 and 13
of Marimekko Corporation's Articles
of Association. The amendments have been
detailed in the Notice of the Annual   
General Meeting published on 16 March
2009. The Articles of Association approved
at the Annual General Meeting are
appended to the stock exchange release dated 8
April 2009.                    
                                                

CHANGES IN THE COMPANY'S
MANAGEMENT                                             

Malin Groop,
Marimekko's Marketing Manager, was appointed as the Group's        
Marketing
Director and member of the Management Group as of 1 August 2009.
Marja
Korkeela, Head of Group Communications and Investor Relations and member
of the 
Management Group, left the company on 31 August 2009. Mervi           
         
Metsänen-Kalliovaara, Marimekko's Sales Director and member of the
Management   
Group, left the company on 7 October 2009. As of 7 October 2009,
the Marimekko  
Group's Management Group comprised Mika Ihamuotila as Chairman
and Thomas       
Ekström (finance, administration and investor relations),
Malin Groop           
(marketing), Päivi Lonka (international sales), Niina
Nenonen (clothing, bags   
and accessories), Piia Rossi (company-owned retail
shops in Finland), and Helinä
Uotila (production, purchases and interior
decoration) as members.              

EFFICIENCY ENHANCEMENT AND STATUTORY
EMPLOYER-EMPLOYEE NEGOTIATIONS REGARDING   
OPERATIONS IN FINLAND             
                                             

On 13 August 2009, Marimekko
announced the start of Group-wide statutory        
employer-employee
negotiations regarding possible temporary lay-offs and a      
permanent
reduction in the number of employees in Finland. The maximum number
of
permanent reductions was not expected to exceed 35 employees. The aim of
the    
negotiations was to adapt the company's cost structure to the rapidly 
         
deteriorating market situation and improve the company's ability to
develop its 
operations as well as safeguard the conditions for the stable
development of the
company.                                                   
                    

On 7 October 2009, Marimekko announced that its
Group-wide statutory            
employer-employee negotiations had been
completed. The company stated that      
reorganisation of functions and
rationalisation of operations would result in   
the elimination of 35
positions. In addition, the company announced a need to   
fill eight new
positions; as far as possible, these positions would be filled by
internal
transfers. The annual costs of the new positions were estimated at     
about
EUR 0.4 million. Temporary layoffs were rejected for the rest of 2009, but
the
decision was made to prepare for them in certain functions until 31 May    

2010. Subsequently, temporary lay-offs were also rejected for the spring of  
  
2010. The personnel cutbacks and other measures to be taken are expected to
    
bring annual cost savings of approximately EUR 1.5 million in total. In  
      
connection with the personnel reductions, the company recognised a
non-recurring
cost provision of EUR 0.5 million in the third quarter of 2009. 
               

THE BOARD OF DIRECTORS' PROPOSAL FOR THE DIVIDEND FOR THE
2009 FINANCIAL YEAR   

A dividend of EUR 0.55 per share was paid for 2008 to
a total of EUR 4,422,000. 
The Board of Directors will propose to the Annual
General Meeting that a        
dividend of EUR 0.45 per share be paid for
2009. The proposed dividends         
represent 76.3% of the Group's earnings
per share for the financial year. On    
31 December 2009, the parent
company's distributable funds amounted to          
EUR 19,982,129. The Board
will propose 20 April 2010 as the dividend record     
date, and 27 April 2010
as the dividend payout date.                            

OUTLOOK FOR 2010   
                                                            

Marimekko
Corporation operates in a field where economic trends affect its     

business activities. In the last quarter of 2009, some positive signs were   
  
visible in the trend in Marimekko's sales. However, challenging market     
    
conditions are anticipated to continue in 2010.                          
      

The majority of the Group's net sales are generated in Finland. In
recent years,
however, exports have increasingly been driving Marimekko's net
sales growth. In
2009, a clearly positive sales trend was seen only in Japan,
where a significant
part of growth was based on new concept store openings. In
2010, Marimekko's    
exports are estimated to grow slightly. In 2009, the
Group's net sales and      
earnings included significant revenues generated
from individual promotions. In 
2010, similar revenues that increase net sales
and improve earnings are         
estimated to be lower.                      
                                   

The Marimekko Group's net sales and
operating profit for 2010 are expected to be
approximately at the same level
as in 2009.                                     

Helsinki, 3 February 2010  
                                                    

MARIMEKKO CORPORATION  
                                                        
Board of Directors   
                                                          

Information
presented in the financial statement bulletin is unaudited.        


APPENDICES                                                                 
    
Accounting principles                                                    
      
Consolidated income statement and comprehensive 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            
                          

Accounting principles                            
                              
This financial statement bulletin has been
prepared in accordance with IAS 34:  
Interim Financial Reporting and applying
the same accounting policy as for the  
2008 financial statements. In
addition, on 1 January 2009 the Group adopted the 
following new or amended
standards published by the IASB in 2008:               

IAS 1 standard
(amended)                                                        
In
accordance with the amended IAS 1 standard, Marimekko Corporation presents  

both the consolidated and comprehensive consolidated income statements.      
  

IFRS 8                                                                   
      
The operational segment reported by the Marimekko Group is the
Marimekko        
business.                                                   
                   

FORMULAS FOR THE KEY FIGURES                            
                       

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, 31 December                            

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                          

CONSOLIDATED INCOME STATEMENT
                                                  

(EUR 1,000)              
       10-12/   10-12/    1-12/    1-12/              
                       
           2009     2008     2009     2008              

NET SALES          
             20,719   22,061   72,473   81,107              
Other operating
income                6      203       41      244              
Increase or
decrease in                                                         

inventories of completed                                                      

 and unfinished products            739   -1,851    2,135      185           
  
Raw materials and consumables     7,678    8,097   26,890   33,597         
    
Employee benefit expenses         4,660    5,133   18,202   18,287       
      
Depreciation                        363      341    1,394    1,324     
        
Other operating expenses          4,932    4,997   17,602   18,372   
          

OPERATING PROFIT                  2,353    1,845    6,291   
9,956              

Financial income                     26       52      
86      205              
Financial expenses                  -10      -57    
 -23     -197              
                                     16       -5  
    63        8              

PROFIT BEFORE TAXES               2,369   
1,840    6,354    9,964              

Income taxes                       
630      474    1,653    2,586              

NET INCOME FOR THE PERIOD      
  1,739    1,366    4,701    7,378              

Distribution of net income
to                                                   
 equity holders of the
parent                                                   
 company            
             1,739    1,366    4,701    7,378              

Basic and
diluted earnings                                                      
 per
share calculated on the                                                    

profit attributable to equity                                                 

 holders of the parent                                                       
  
 company, EUR                      0.22     0.17     0.59     0.92         
    


COMPREHENSIVE CONSOLIDATED INCOME STATEMENT                          
          
                                                                   
            
(EUR 1,000)                      10-12/   10-12/     1-12/  
1-12/              
                                   2009     2008      2009
   2008              

Net income for the period         1,739    1,366    
4,701   7,378              
Other comprehensive income                        
                             
  Change in translation                         
                               
  difference                         13     
-19         4      -5              

TOTAL COMPREHENSIVE                     
                                       
INCOME FOR THE PERIOD            
1,752    1,347     4,705   7,373              

Distribution of net income   
                                                  
 to equity holders of      
                                                    
 the parent company      
        1,752    1,347     4,705   7,373              


CONSOLIDATED
BALANCE SHEET                                                      

(EUR
1,000)                                 31.12.2009  31.12.2008             


ASSETS                                                                     
    

NON-CURRENT ASSETS                                                     
        
Tangible assets                                  9,805       9,948   
          
Intangible assets                                  409         458 
            
Available-for-sale financial assets                 20         
20              
                                                10,234     
10,426              

CURRENT ASSETS                                         
                        
Inventories                                    
15,229      17,286              
Trade and other receivables                  
   5,241       6,109              
Current tax assets                         
        18         268              
Cash and cash equivalents                
      10,245       6,112              
                                       
        30,733      29,775              

ASSETS, TOTAL                      
            40,967      40,201              

SHAREHOLDERS' EQUITY AND
LIABILITIES                                            

EQUITY ATTRIBUTABLE
TO EQUITY HOLDERS                                           
OF THE PARENT
COMPANY                                                           
Share
capital                                    8,040       8,040             

Translation differences                              2          -2           
  
Retained earnings                               23,783      23,504         
    
Shareholders' equity, total                     31,825      31,542       
      

NON-CURRENT LIABILITIES                                              
          
Deferred tax liabilities                           683         705 
            
Financial liabilities                                -          
-              
                                                   683        
705              

CURRENT LIABILITIES                                       
                     
Trade and other payables                         7,874  
    7,751              
Current tax liabilities                            585
         18              
Financial liabilities                               
-         185              
                                                
8,459       7,954              

Liabilities, total                          
    9,142       8,659              

SHAREHOLDERS' EQUITY AND LIABILITIES,
TOTAL     40,967      40,201              

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)                                       2009        2008             


CASH FLOW FROM OPERATING ACTIVITIES                                        
    

Net profit for the period                        4,701       7,378     
        
Adjustments                                                          
          
 Depreciation according to plan                  1,394       1,324 
            
 Financial income and expenses                     -63         
-8              
 Taxes                                           1,653      
2,586              
Cash flow before change in working capital       7,685    
 11,280              

Change in working capital                             
                         
 Increase (-) / decrease (+) in current             
                           
  non-interest-bearing trade receivables          
834        -574              
 Increase (-) / decrease (+) in inventories     
2,055         995              
 Increase (-) / decrease in current           
                                 
  non-interest-bearing liabilities          
      108      -1,050              
Cash flow from operating activities before
                                     
 financial items and taxes              
       10,682      10,651              

Paid interest and payments          
                                           
 on other operational financial
expenses           -24        -200              
Interest received            
                     120         201              
Taxes paid                 
                      -837      -2,616              

CASH FLOW FROM
OPERATING ACTIVITIES              9,941       8,036              

CASH FLOW
FROM INVESTING ACTIVITIES                                            


Investments in tangible                                                    
    
 and intangible assets                          -1,202      -1,362       
      

CASH FLOW FROM INVESTING ACTIVITIES             -1,202      -1,362   
          

CASH FLOW FROM FINANCING ACTIVITIES                              
              

Short-term loans drawn                               -      
4,600              
Short-term loans repaid                           -185    
 -5,550              
Long-term loans repaid                               -  
     -655              
Dividends paid                                  -4,422
     -5,226              

CASH FLOW FROM FINANCING ACTIVITIES            
-4,607      -6,831              

Change in cash and cash equivalents        
     4,133        -157              

Cash and cash equivalents              
                                        
 at the beginning of the period      
           6,112                          
      6,269                        
                                            
Cash and cash equivalents        
                                              
 at the end of the period      
                10,245                          
      6,112                  
                                                  


CONSOLIDATED STATEMENT
OF CHANGES IN SHAREHOLDERS' EQUITY                       

(EUR 1,000)       
                                                             

       Equity
attributable to equity holders of the parent company              

         
                                           Shareholders'              
       
            Share   Translation   Retained         equity,              
     
            capital   differences   earnings           total             


Shareholders'                                                              
    
 equity                                                                  
      
 1 Jan. 2008        8,040             3     21,352          29,395     
        

Comprehensive                                                      
            
 income for the                                                  
              
 period                              -5      7,378          
7,373              

Dividends paid                              -5,226      
   -5,226              

Shareholders'                                       
                           
 equity                                           
                             
 31 Dec. 2008       8,040            -2    
23,504          31,542              


Shareholders'                        
                                          
 equity                            
                                            
 1 Jan. 2009        8,040        
    -2    23,504          31,542              

Comprehensive                
                                                  
 income for the            
                                                    
 period                  
             4     4,701           4,705              

Dividends paid       
                      -4,422          -4,422              

Shareholders'    
                                                              
 equity        
                                                                
 31 Dec. 2009
       8,040             2    23,783          31,825              

KEY
INDICATORS                                                                  
 
                                    2009        2008   Change, %             


Earnings per share, EUR               0.59        0.92       -35.9         
    
Equity per share, EUR                 3.96        3.92         1.0       
      
Share of exports and income from                                       
        
 international operations,                                           
          
 % of net sales                       27.3        27.0             
            
Return on equity (ROE), %             14.8        24.2           
              
Return on investment (ROI), %         20.1        32.3         
                
Equity ratio, %                       77.7        78.7       
                  
Gearing, %                           -32.2       -18.8     
                    
Gross investments, EUR 1,000         1,202       1,362   
   -11.8              
Gross investments, % of net sales      1.7         1.7 
                        
Contingent liabilities, EUR 1,000   11,819     
17,861       -33.8              
Average personnel                      400   
     411        -2.7              
Personnel at the end of the period     370 
       414       -10.6              
Number of shares at the end              
                                      
 of the period (1,000)              
8,040       8,040                          
Number of shares outstanding,     
                                             
 average (1,000)                
    8,040       8,040                          

NET SALES BY MARKET AREA    
                                                   

(EUR 1,000)       
10-12/   10-12/ Change,   1-12/   1-12/ Change,              
                
    2009     2008       %    2009    2008       %              

Finland     
      16,538   17,762    -6.9  52,711  59,175   -10.9              
Other
Nordic                                                                   

countries           1,725    1,614     6.9   7,042   9,423   -25.3           
  
Rest of Europe        978      933     4.8   4,821   4,700     2.6         
    
North America         694    1,117   -37.9   3,003   3,994   -24.8       
      
Other countries       784      635    23.5   4,896   3,815    28.3     
        
TOTAL              20,719   22,061    -6.1  72,473  81,107   -10.7   
          


NET SALES BY PRODUCT LINE                                      
                

(EUR 1,000)        10-12/  10-12/  Change,   1-12/   1-12/
Change,              
                     2009    2008        %    2009   
2008       %              

Clothing            6,213   6,531     -4.9 
27,466  29,898    -8.1              
Interior                                 
                                      
decoration         11,658  12,935    
-9.9  32,687  37,747   -13.4              
Bags                2,848   2,595  
   9.7  12,320  13,462    -8.5              
TOTAL              20,719  22,061
    -6.1  72,473  81,107   -10.7              


SEGMENT INFORMATION        
                                                    

(EUR 1,000)            
              2009        2008   Change, %              

Marimekko business 
                                                            
 Net sales       
                  72,473      81,107       -10.7              
 Operating
result                    6,291       9,956       -36.8              
 Assets 
                           40,967      40,201         1.9             



QUARTERLY TREND IN NET SALES AND EARNINGS                                
      

(EUR 1,000)                10-12/       7-9/       4-6/       1-3/   
          
                             2009       2009       2009       2009 
            

Net sales                  20,719     19,492     15,999    
16,263              
Operating result            2,353      2,901      1,058  
     -21              
Earnings per share, EUR      0.22       0.27       0.10
      0.00              

(EUR 1,000)                10-12/       7-9/      
4-6/       1-3/              
                             2008       2008    
  2008       2008              

Net sales                  22,061     21,913
    18,539     18,594              
Operating result            1,845     
3,747      2,540      1,824              
Earnings per share, EUR      0.17   
   0.35       0.23       0.17
 


marimekko_financial statements_2009.pdf