Published: 2010-11-04 08:00:00 CET
Marimekko Oyj
Interim report (Q1 and Q3)
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2010
Marimekko Corporation        INTERIM REPORT                                    

                             4 November 2010 at 9 a.m.                       
  

MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2010    
      

In the January-September period of 2010, the Marimekko Group's net
sales fell   
slightly; operating profit improved clearly. Net sales fell by
1.0% to EUR 51.2 
million (EUR 51.8 million). The decrease was partly
attributable to an extensive
price-led promotion organised in Finland in the
first quarter of 2009 to reduce 
inventories. In addition, in 2009, net sales
for the corresponding period       
included higher revenues from individual
promotions than this year. Operating   
profit increased by 51.9% to EUR 6.0
million (EUR 3.9 million). Profit after    
taxes for the period was EUR 4.4
million (EUR 3.0 million) and earnings per     
share were EUR 0.55
(EUR 0.37).                                                 

Due to
better-than-expected average sales margin and cost development, the     

company revised its operating profit estimate for 2010 on 25 October 2010.   
  
Operating profit is expected to be better than in 2009. Operating profit is
also
expected to be slightly better than the 2009 operating profit excluding  
      
non-recurring items. Operating profit for 2009 included a EUR 0.5
million       
non-recurring cost related to personnel cuts. The net sales
estimate remains    
unchanged. Net sales for 2010 are expected to be
approximately at the same level
as in 2009.                                   
                                 

                                1-9/     
1-9/    Change,    1-12/              
                                2010   
  2009          %     2009              

Net sales, EUR 1,000         
51,223    51,754       -1.0   72,473              
Operating profit, EUR 1,000
   5,981     3,938       51.9    6,291              
Profit before taxes      
                                                      
 EUR 1,000             
       5,969     3,985       49.8    6,354              
Profit for the
period,                                                          
 EUR 1,000  
                  4,421     2,962       49.3    4,701              
Earnings
per share, EUR         0.55      0.37                0.59              
Equity
per share, EUR           4.06      3.74        8.6     3.96              
Cash
flow from operating                                                        

activities, EUR 1,000           922     5,368               9,941             

Return on equity (ROE), %       18.3      12.8                14.8           
  
Return on investment (ROI), %   24.8      17.3                20.1         
    
Equity ratio, %                 80.4      77.8                77.7       
      

Mika Ihamuotila, President and CEO:                                  
          

”The Group's net sales for the January-September period of 2010
were nearly at  
the level of the comparison period. The trend in Marimekko's
profitability      
during the review period was quite positive, even slightly
better than expected.
Operating profit improved by 51.9%, reaching EUR 6.0
million. The measures taken
in 2009 to enhance operational efficiency and the
continuous development of     
business operations are bearing fruit. An
increase in average sales margin has a
major impact on profitability. The rise
in sales margin is partly due to the    
fact that, during the current year,
we have carried out fewer price-led         
promotions than last year. A
favourable trend in expenses also contributed to   
the improvement in
profitability. Earnings for the period were boosted by lower 
operating and
marketing expenses compared to the same period the year before.   
Full-year
marketing expenses are expected to be at the same level as in 2009.   

The
international projects in the USA, Northern Europe and East Asia, announced

in August, have progressed according to plan. A Marimekko shop-in-shop in
Crate 
and Barrel's Soho store in New York and South Korea's first Marimekko
store,    
located in Seoul, opened in mid—October. New retail shops of our
own will open  
in Berlin and Malmö in November. Our operations are developing
in the right     
direction, and we are making steady progress in line with
our chosen strategy.  
It should be borne in mind, however, that the
investments made especially in    
developing the product range and in opening
new stores and distribution channels
depressed earnings in the second and
third quarters. These investments will     
continue to have an impact on the
Group's earnings for the remainder of the     
year. The company's earnings
trend is likely to be adversely affected by the    
investments required for
internationalisation, which I feel are justified in the
long run, as well as,
at least in the shorter term, the steep rise in cotton    
prices."           
                                                            

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                                                   
        

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 decoration textiles, bags, and     
other accessories. Marimekko
products are sold in about 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         
international sales
accounted for 27.3%. The Group employs approximately 370    
people. The
company's share is quoted on NASDAQ OMX Helsinki Ltd.              


MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2010      
    

MARKET SITUATION                                                       
        

In early autumn, economic growth accelerated in Finland and the
rest of Europe. 
A strong recovery was seen in the Finnish economy during the
summer. Economic   
growth in the United States has slowed down, which is
considered a bad sign. US 
consumer confidence has at no point risen to the
European level; the direction  
of the country's economic development depends
on domestic demand and employment 
trends. Economic growth also slowed down in
Japan. (Confederation of Finnish    
Industries EK: Economic Review, 17
September 2010) In Finland, retail sales     
expectations are positive, and
sales are anticipated to pick up somewhat towards
Christmas. (Confederation of
Finnish Industries EK: Business Confidence         
Indicators, October 2010).
From January to September 2010, the value of retail  
sales in Finland
increased by 2.9% (Statistics Finland: Retail trade turnover   
2010,
September, quick estimate). In the January-August period of 2010, retail 

sales of clothing (excluding sportswear) grew by 3.2% (Textile and Fashion   
  
Industries TMA). Sales of womenswear rose by 2.7%, sales of menswear by
5.6%,   
and sales of childrenswear by 1.3%. Sales of bags grew by 2.5%. From
January to 
August 2010, exports of clothing (SITC 84) fell by 5% and imports
rose by 1%;   
exports of textiles (SITC 65) decreased by 7%, while imports
grew by 16%        
(National Board of Customs, monthly review, August 2010). 
                     

NET SALES                                             
                         

July-September                                    
                             
In the July-September period of 2010, the
Marimekko Group's net sales decreased 
by 0.1% to EUR 19,468 thousand (EUR
19,492 thousand). Sales in Finland fell by  
2.5% to EUR 13,828 thousand (EUR
14,183 thousand). The difference in relation to
the comparison period is due
to revenues from a one-off promotion in the        
corresponding period of
the previous year. International sales increased by 6.2%
to EUR 5,640 thousand
(EUR 5,309 thousand). The growth was generated by the     
delivery of initial
inventories to two new retailer-owned Marimekko stores.    


January-September                                                          
    
In the January-September period of 2010, the Marimekko Group's net sales 
      
decreased by 1.0% to EUR 51,223 thousand (EUR 51,754 thousand). Net
sales in    
Finland fell by 2.1% to EUR 35,426 thousand (EUR 36,173
thousand). The decline  
was partly attributable to an extensive price-led
promotion organised in the    
first quarter of 2009 to reduce inventories. In
addition, in 2009, net sales for
the corresponding period included higher
revenues from individual promotions    
than this year. International sales
increased by 1.4% to EUR 15,797 thousand    
(EUR 15,581 thousand). The growth
was generated by the delivery of initial      
inventories to two new
retailer-owned Marimekko stores in the third quarter. The
share of
international sales in the Group's net sales amounted to 30.8% (30.1%).

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

39.8%, interior decoration 42.8%, and bags 17.4%. Net sales by market area
were:
Finland 69.1%, the other Nordic countries 10.4%, the rest of Europe
7.5%, North 
America 5.0%, and other countries (Japan and other regions
outside Europe and   
North America) 8.0%.                                    
                       

BUSINESS UNIT REVIEWS                               
                           

Clothing                                        
                               
In the January-September period of 2010, net
sales of clothing fell by 4.1% to  
EUR 20,376 thousand (EUR 21,253 thousand).
Sales decreased in Finland and the   
market area referred to as "the rest of
Europe", while other market areas saw   
growth in sales. International sales
accounted for 26.1% of net sales of        
clothing.                         
                                             

Interior decoration           
                                                 
Net sales of interior
decoration products increased by 4.2% to EUR 21,906       
thousand
(EUR 21,029 thousand). Almost all of the growth came from North America
and
the market areas referred to as “the rest of Europe” and “other countries”.

In Finland and the other Nordic countries, sales increased slightly.         
  
International sales accounted for 35.4% of net sales of interior decoration
    
products.                                                                
      

Bags                                                                 
          
Net sales of bags fell by 5.6% to EUR 8,941 thousand (EUR 9,472
thousand). Sales
increased in North America and the market area referred to as
“the rest of      
Europe”. In other market areas, sales decreased.
International sales accounted  
for 30.6% of net sales of bags.               
                                 

Sales in Finland                          
                                     
In the January-September period of 2010,
Marimekko's retail sales, i.e. sales by
Marimekko's own retail shops in
Finland, fell by 3.7%. Domestic wholesale sales 
decreased by 1.9%. The
decline in retail sales was partly due to changes in     
sales areas in the
Helsinki shops. Both retail and wholesale sales in Finland   
were adversely
affected by the extensive price-led promotion organised in the   
first
quarter of 2009 to reduce inventories.                                   


International sales                                                        
    
In the January-September period of 2010, Marimekko's international sales 
      
(previously "exports and international operations") increased by 1.4%
to EUR    
15,797 thousand (EUR 15,581 thousand). The growth was generated by
the delivery 
of initial inventories to two new retailer-owned Marimekko
stores in the third  
quarter. Net sales in North America rose by 10.3% to
EUR 2,546 thousand         
(EUR 2,309 thousand). Sales in other export
markets were at the same level as in
the comparison period. In the market area
referred to as “the other Nordic      
countries”, net sales amounted to EUR
5,315 thousand (EUR 5,317 thousand), in   
the rest of Europe to EUR 3,830
thousand (EUR 3,843 thousand), and in the market
area referred to as “other
countries” to EUR 4,106 thousand (EUR 4,112          
thousand). The largest
export countries were Japan, Sweden, the United States,  
Denmark and Norway. 
                                                           

Licensing       
                                                               
Royalty
earnings from sales of licensed products increased markedly. The       

majority of the growth came from the Unites States and Japan.                
  

Production                                                               
      
During the January-September period of 2010, the output of the
Herttoniemi      
textile printing factory increased by 1.1%. The production
volume of the Sulkava
factory decreased somewhat compared with the
corresponding period of the        
previous year. The output of the Kitee
factory declined substantially as a      
result of changes to the production
structure implemented in 2009.              

EARNINGS                       
                                                

July-September             
                                                    
In the July-September
period of 2010, the Group's operating profit increased by 
43.7% from the
comparison period to EUR 4,170 thousand (EUR 2,901 thousand).    
Earnings per
share were EUR 0.38 (EUR 0.27). Operating profit for the          

corresponding period in 2009 included a EUR 0.5 million non-recurring cost   
  
related to personnel cuts. Earnings for the period were boosted by an
increase  
in average sales margin, lower operating expenses and higher
royalty income.    
During the current year, revenues generated from one-off
promotions were lower  
than in the corresponding period of the previous year,
which weakened earnings. 

January-September                                 
                             
In the January-September period of 2010, the
Group's operating profit increased 
by 51.9% to EUR 5,981 thousand (EUR 3,938
thousand). Operating profit as a      
percentage of net sales was 11.7%
(7.6%). Marketing expenses for the period     
amounted to EUR 1,882 thousand
(EUR 2,217 thousand), representing 3.7% (4.3 %)  
of the Group's net sales.   
                                                   

Earnings for the period
were boosted by an increase in average sales margin as  
well as the fact that
operating and marketing expenses were lower and royalty   
income was higher
than in the comparison period. Full-year marketing expenses   
are expected to
be at the same level as in 2009. Investments in product         
development
and building up the company's international distribution network, on
the other
hand, weighed down earnings. During the current year, revenues       

generated from one-off promotions were lower than in the corresponding period
of
the previous year, which also weakened earnings.                           
    

The Group's depreciation amounted to EUR 1,108 thousand (EUR 1,031
thousand),   
representing 2.2% (2.0%) of net sales. Net financial expenses
totalled EUR 12   
thousand (net financial income of EUR 47 thousand), or
0.02% (0.1%) of net      
sales.                                              
                           

Profit for the period after taxes stood at EUR
4,421 thousand (EUR 2,962        
thousand), representing 8.6% (5.7%) of net
sales. Earnings per share were       
EUR 0.55 (EUR 0 37).                    
                                       

INVESTMENTS                         
                                           

The Group's gross investments
amounted to EUR 689 thousand (EUR 782 thousand),  
representing 1.3% (1.5%) of
net sales. The majority of investments were directed
at acquisitions and
updates of information systems.                             

EQUITY RATIO
AND FINANCING                                                      

The
Group's equity ratio was 80.4% at the end of the period (77.8% on 30       

September 2009, 77.7% on 31 December 2009). The ratio of interest-bearing    
  
liabilities minus financial assets to shareholders' equity (gearing) was
-21.0%,
while it was -20.3% at the end of the corresponding period in the
previous year 
(-32.2% on 31 December 2009).                                  
                

At the end of the period, the Group's financial liabilities
stood at EUR 0 (EUR 
0). The Group's financial assets at the end of the period
amounted to EUR 6,860 
thousand (EUR 6,092 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 6,676 (6,723) shareholders  
at the end of
the period. Of the shares, 14.5% were registered in a nominee's   
name and
15.8% were in foreign ownership. The number of shares owned either    

directly or indirectly by members of the Board of Directors and the President
of
the company was 1,086,440, 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
30 September   
2010                                                          
                 

                                       Number of       
Percentage              
                                      shares and     
  of holding              
                                           votes   
     and votes              

1.  Muotitila Ltd                     1,045,200
             13.00              
2.  Semerca Investment Ltd             
850,377              10.58              
3.  ODIN Finland                     
  403,218               4.98              
4.  Varma Mutual Employment        
                                            
    Pension Insurance Company    
      385,920               4.80              
5.  Nordea Nordic Small Cap
Fund        269,204               3.35              
6.  Ilmarinen Mutual
Pension                                                    
    Insurance
Company                   265,419               3.30              
7.  Veritas
Pension Insurance Company   220,000               2.74              
8. 
Sairanen Seppo                       71,379               0.89             

9.  Mutual Fund Tapiola Finland          58,555               0.73           
  
10. Foundation for Economic Education    50,000               0.62         
    
11. Scanmagnetics Oy                     40,000               0.50       
      
12. Fromond Elsa                         37,000               0.46     
        
13. Haapanala Auvo                       35,000               0.43   
          
14. Westerberg Olof                      33,600               0.42 
            
15. Karvonen Eero                        27,900              
0.34              
Total                                 3,789,772            
 47.14              
Nominee-registered                    1,167,358          
   14.52              
Others                                3,082,870        
     38.34              
Total                                 8,040,000      
      100.00              

Flaggings                                        
                              
SEB Asset Management S.A.'s share of Marimekko
Corporation's share capital and  
voting rights rose to 5.13%, or 412,259
shares, as a result of a transaction    
concluded on 5 February 2010.        
                                          

SEB Asset Management S.A.'s share
of Marimekko Corporation's share capital and  
voting rights declined to
0.00%, or 0 shares, due to a stock loan on 15 April   
2010 and increased back
to 5.13%, or 412,259 shares, when the stock loan ended  
on 28 April 2010.    
                                                          

The combined
share of Marimekko Corporation's share capital and voting rights   
held by
organisations controlled by Credit Suisse Group AG rose to 5.60%, or   

450,000 shares, as a result of a transaction concluded on 20 April 2010.
After  
the transaction, Credit Suisse Securities (Europe) Ltd owned 400,000
Marimekko  
shares and Credit Suisse Securities (USA) LLC owned 50,000 shares.
The total    
share of Marimekko Corporation's share capital and voting rights
held by the    
aforementioned organisations controlled by Credit Suisse Group
AG decreased to  
less than 5.00% as a result of a transaction concluded on 23
April 2010.        
                                                          
                     
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 730,312 Marimekko shares were traded,      
representing 9.1% of the shares
outstanding. The total value of Marimekko's     
share turnover was
EUR 8,129,599. The lowest share price was EUR 10.00, the     
highest was
EUR 13.29 and the average share price during the period was        

EUR 11.19. At the end of the period, the closing price of the share was      
  
EUR 11.28. The company's market capitalisation on 30 September 2010 was    
    
EUR 90,691,200 (EUR 83,374,800 on 30 September 2009, EUR 82,812,000 on 31
      
December 2009).                                                        
        

PERSONNEL                                                          
            

During the January-September period of 2010, the number of
employees averaged   
372 (408. At the end of the period, the Group employed
378 (403) people, of whom
18 (16) worked abroad.                              
                           

CHANGES IN THE COMPANY'S MANAGEMENT             
                               

Minna Kemell-Kutvonen commenced on 1 July
2010 as Creative Director of all of   
the Marimekko Group's product lines and
a member of the Management Group. Piia  
Rossi, Director for Marimekko's own
retail shops in Finland and member of the   
Management Group, resigned on 16
August 2010. Päivi Lonka was appointed Sales   
Director for the Group,
responsible for sales and shops, as of 16 August 2010.  
The appointed persons
have also previously held management positions in the     
company.           
                                                            

RISK MANAGEMENT
AND MAJOR RISKS                                                 

Marimekko's
risk management and key risks related to its business are described 
in the
2009 Annual Report and Financial Statements Bulletin. No major changes   
have
occurred in the general risk factors since the review presented in the    

report of the Board of Directors on 2 February 2010. The particular risks in
the
near future are associated with the development of consumers' purchasing  
     
behaviour.                                                              
       

In addition, the company will closely monitor the near-term trend in
cotton     
prices. The risks related to changes in raw material prices are
explained in the
2009 Annual Report and Financial Statements Bulletin. A
variety of raw materials
are used to manufacture Marimekko's products, the
most important being cotton.  
So far, the price increase of cotton has not
had an effect on the companys's    
earnings. The risks related to raw
material price fluctuations are diminished by
taking the fluctuations into
account in product pricing. If the price of cotton 
remains at its present
high level or rises further and if the company fails to  
pass the increased
raw material costs on to selling prices, the company's       
earnings may be
affected.                                                       

The
management and monitoring of change and ensuring sufficient core expertise,

as well as monitoring the trend in cotton prices and any action required are 
  
emphasised in near term risk management.                                   
    

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.              
Environmental, health and safety issues
are reported in the 2009 Annual Report. 
The framework for reporting is
provided by the G3 guidelines of the Global      
Reporting Initiative (GRI). 
                                                   

DECISIONS OF THE ANNUAL
GENERAL MEETING                                         

The decisions of
Marimekko Corporation's Annual General Meeting are reported in 
the stock
exchange release dated 15 April 2010 as well as in the interims       
reports
published on 6 May 2010 and 12 August 2010.                            


MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD                          
    

Changes in the company's management                                    
        
After the retirement of Helinä Uotila, Director for Marimekko's
production,     
purchases and interior decoration line, on 1 November 2010,
all three of the    
company's product lines are managed by one Product
Director, Niina Nenonen. She 
was previously in charge of the company's
clothing and bags product lines. The  
organisational changes implemented in
2010 aim to improve consistency in design 
across the different product lines,
enhance efficiency in production and        
sourcing, and develop product
assortment planning to better respond to the needs
of different distribution
channels. As of 1 November 2010, the Marimekko Group's
Management Group
comprises Mika Ihamuotila as the Chair and Thomas Ekström      
(finance and
administration), Malin Groop (marketing), Minna Kemell-Kutvonen    
(design),
Päivi Lonka (sales), and Niina Nenonen (product lines).              


International projects                                                     
    
On 12 August 2010, Marimekko announced that it will carry out significant
      
international projects during the remainder of 2010.                   
        

In the United States, a subsidiary, Marimekko North America LLC,
was established
in October 2010 to manage and develop the local operations in
collaboration with
the brand management firm C2Group. The renowned home
furnishings retailer Crate 
and Barrel opened a Marimekko shop-in-shop in its
Soho store in New York in     
mid-October. Marimekko and Crate and Barrel are
also exploring further          
opportunities for collaboration, including
additional US shop-in-shops and      
ecommerce. Marimekko's long-term goal is
to expand the distribution of its      
products in the United States through
high-end department and specialty stores  
as well as by increasing the number
of Marimekko stores.                        

The first Marimekko concept
store in South Korea was opened in Seoul in         
mid-October. The store is
owned by I.D. Look Co., Ltd., a subsidiary of         
Marimekko's Japanese
distributor Look Inc. In November 2010, Marimekko will open
its own retail
shops in Berlin and Malmö.                                       

OUTLOOK
FOR THE REMAINDER OF 2010                                              


Marimekko Corporation operates in a field where economic trends affect its 
    
business activities. In the January-September period of 2010, net sales  
      
decreased slightly, while operating profit improved clearly. Earnings
for the   
period were boosted by an increase in average sales margin as well
as the fact  
that operating and marketing expenses were lower and royalty
income was higher  
than in the comparison period. Full-year marketing
expenses are expected to be  
at the same level as in 2009. Investments in
product development and building up
the company's international distribution
network, on the other hand, weighed    
down earnings. During the current
year, revenues generated from one-off         
promotions were lower than in
the corresponding period of the previous year,    
which also weakened
earnings                                                    

The majority of
the Group's net sales are generated in Finland. In recent years,
however,
international sales have increasingly been driving Marimekko's net     
sales
growth. During 2010, international sales are estimated to grow slightly.  
In
2009, the Group's net sales and earnings included significant revenues      

generated from individual promotions. This year, similar revenues that
increase 
net sales and improve earnings are estimated to be lower. In the
second and     
third quarters, earnings were depressed by additional
investments in product    
development and building up the company's
international distribution network.   
These investments will continue to have
an impact on the Group's earnings for   
the remainder of the year.           
                                          

The company revised its operating
profit estimate for 2010 on 25 October 2010   
due to better-than-expected
average sales margin and cost development. Operating
profit is expected to be
better than in 2009. Operating profit is also expected 
to be slightly better
than the 2009 operating profit excluding non-recurring    
items. Operating
profit for 2009 included a EUR 0.5 million non-recurring cost  
related to
personnel cuts.                                                      

The
net sales estimate provided in the interim review on 12 August 2010 remains

unchanged. Net sales for 2010 are expected to be approximately at the same
level
as in 2009.                                                             
       

Due to the seasonality of Marimekko's business, the major portion of
the        
company's net sales and earnings are traditionally generated
during the last two
quarters of the year. In the last quarter, a significant
share of sales is      
accounted for by retail sales.                        
                         

Helsinki, 4 November 2010                         
                             

MARIMEKKO CORPORATION                         
                                 
Board of Directors                          
                                   
Information presented in the interim
report has not been audited.               

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 interim report was prepared in accordance with IAS 34:
Interim Financial   
Reporting. The same accounting principles were applied as
in the 2009 financial 
statements. The new or amended standards and
interpretations that have become   
effective in 2010 and whose contents are
presented in the financial statements  
for 2009 have had no effect on the
information in the interim report.           

FORMULAS FOR THE KEY FIGURES  
                                                 

Earnings per share (EPS),
EUR:                                                  
(Profit before taxes -
income taxes) / Number of shares (average for the        
financial period)   
                                                           

Equity per
share, EUR:                                                         

Shareholders' equity / Number of shares, 30 September                        
  

Return on equity (ROE), %:                                               
      
(Profit before taxes - income taxes) X 100 / Shareholders' equity
(average for  
the financial period)                                          
                

Return on investment (ROI), %:                             
                    
(Profit before taxes + 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)    
        7-9/     7-9/     1-9/     1-9/      1-12/              
             
          2010     2009     2010     2009       2009              

NET SALES
            19,468   19,492   51,223   51,754     72,473              
Other
operating                                                                 

income                    3        4       13       35         41             

Increase or decrease                                                         
  
 in inventories of                                                         
    
 completed and                                                           
      
 unfinished products     -42    1,163   -1,072    1,396     -2,135     
        
Raw materials and                                                    
          
 consumables           7,051    6,695   19,860   19,212     26,890 
            
Employee benefit                                                 
              
 expenses              3,786    4,349   12,459   13,542    
18,202              
Depreciation             385      334    1,108    1,031  
   1,394              
Other operating                                        
                        
 expenses              4,121    4,054   12,900  
12,670     17,602              

OPERATING PROFIT       4,170    2,901   
5,981    3,938      6,291              

Financial income           3       
7        9       60         86              
Financial expenses       -40     
 -7      -21      -13        -23              
                         -37   
    0      -12       47         63              

PROFIT BEFORE TAXES   
4,133    2,901    5,969    3,985      6,354              

Income taxes      
    1,075      741    1,548    1,023      1,653              

NET INCOME FOR
                                                                 
THE PERIOD  
          3,058    2,160    4,421    2,962      4,701             


Distribution of                                                            
    
 net income to equity                                                    
      
 holders of                                                            
        
 the parent company    3,058    2,160    4,421    2,962      4,701   
          

Basic and diluted                                                
              
 earnings per share                                            
                
 calculated on the                                           
                  
 profit attributable                                       
                    
 to equity holders of                                    
                      
 the parent                                            
                        
 company, EUR           0.38     0.27     0.55    
0.37       0.59              

COMPREHENSIVE CONSOLIDATED INCOME STATEMENT   
                                 

(EUR 1,000)                   7-9/    7-9/
   1-9/    1-9/   1-12/              
                              2010   
2009    2010    2009    2009              

Net income for the period   
3,058   2,160   4,421   2,962   4,701              
Other comprehensive income
                                                     
 Change in translation  
                                                       
 difference           
         -4     -10      -5      -9       4              

COMPREHENSIVE     
                                                             
INCOME FOR THE
PERIOD        3,054   2,150   4,416   2,953   4,705             


Distribution of net income                                                 
    
 to equity holders of                                                    
      
 the parent company          3,054   2,150   4,416   2,953   4,705     
        

CONSOLIDATED BALANCE SHEET                                         
            

(EUR 1,000)                  30.9.2010    30.9.2009    
31.12.2009              

ASSETS                                             
                            

NON-CURRENT ASSETS                             
                                
Tangible assets                  9,184       
9,739          9,805              
Intangible assets                  619     
    417            409              
Available-for-sale                       
                                      
 financial assets                   12 
         20             20              
                                
9,815       10,176         10,234              

CURRENT ASSETS              
                                                   
Inventories               
     16,708       15,548         15,229              
Trade and other
receivables      7,188        6,605          5,241              
Current tax
assets                  18          268             18              
Cash and
cash equivalents        6,860        6,092         10,245              
      
                         30,774       28,513         30,733             


ASSETS, TOTAL                   40,589       38,689         40,967         
    

SHAREHOLDERS' EQUITY                                                   
        
AND LIABILITIES                                                      
          

EQUITY ATTRIBUTABLE TO EQUITY                                    
              
HOLDERS OF THE PARENT COMPANY                                  
                
Share capital                    8,040        8,040         
8,040              
Translation differences             -3          -11       
      2              
Retained earnings               24,586       22,044     
   23,783              
Shareholders' equity, total     32,623       30,073   
     31,825              

NON-CURRENT LIABILITIES                           
                             
Deferred tax liabilities           692         
688            683              

CURRENT LIABILITIES                        
                                    
Trade and other payables         7,274   
    7,928          7,874              
Current tax liabilities              - 
          -            585              
                                
7,274        7,928          8,459              

Liabilities, total          
    7,966        8,616          9,142              

SHAREHOLDERS' EQUITY AND
                                                       
LIABILITIES, TOTAL    
         40,589       38,689         40,967              

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/      1-9/      1-12/     
        
                                         2010      2009       2009   
          

CASH FLOW FROM OPERATING ACTIVITIES                              
              

Net profit for the period               4,421     2,962     
4,701              
Adjustments                                               
                     
 Depreciation according to plan         1,108     1,031 
    1,394              
 Financial income and expenses             12      
-47        -63              
 Taxes                                  1,548    
1,024      1,653              
Cash flow before change                        
                                
 in working capital                     7,089
    4,970      7,685              

Change in working capital             
-3,670     1,403      2,997              
 Increase (-) / decrease (+) in     
                                           
 current non-interest-bearing     
                                             
 trade receivables              
      -1,594      -486        834              
 Increase (-) / decrease (+)
in                                                 
  inventories             
            -1,479     1,737      2,055              
 Increase (-) / decrease
(+) in                                                 
  current
non-interest-bearing                                                  
 
liabilities                            -597       152        108             

Cash flow from operating activities                                          
  
 before financial items and taxes       3,419     6,373     10,682         
    

Paid interest and payments on                                          
        
 other financial expenses                 -21       -14        -24   
          
Interest received                           9        94        120 
            
Taxes paid                             -2,485    -1,085      
-837              

CASH FLOW FROM OPERATING ACTIVITIES       922     5,368  
   9,941              

CASH FLOW FROM INVESTING ACTIVITIES                  
                          

Investments in tangible                          
                              
 and intangible assets                   -689  
   -782     -1,202              

CASH FLOW FROM INVESTING ACTIVITIES     
-689      -782     -1,202              

CASH FLOW FROM FINANCING ACTIVITIES 
                                           

Short-term loans repaid         
           -      -185       -185              
Dividends paid                
        -3,618    -4,422     -4,422              

CASH FLOW FROM FINANCING
ACTIVITIES    -3,618    -4,607     -4,607              

Change in cash and
cash equivalents    -3,385       -21      4,133              

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

at the end of the period               6,860     6,091     10,245             


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. 2009        8,040        
   -2     23,504          31,542              

Comprehensive                
                                                  
 income for the            
                                                    
 period                  
           -9      2,962           2,953              

Dividends paid       
                      -4,422          -4,422              

Shareholders'    
                                                              
 equity        
                                                                
 30 Sept.
2009     8,040            -11     22,044          30,073             



Shareholders'                                                            
      
 equity                                                                
        
 1 Jan. 2010       8,040              2     23,783          31,825   
          

Comprehensive                                                    
              
 income for the                                                
                
 period                              -5      4,421          
4,416              

Dividends paid                              -3,618      
   -3,618              

Shareholders'                                       
                           
 equity                                           
                             
 30 Sept. 2010     8,040             -3    
24,586          32,623              

KEY INDICATORS                         
                                        

                               
1-9/      1-9/    Change,    1-12/              
                             
  2010      2009          %     2009              

Earnings per share, EUR  
      0.55      0.37       48.6     0.59              
Equity per share, EUR  
        4.06      3.74        8.6     3.96              
Return on equity
(ROE), %       18.3      12.8                14.8              
Return on
investment (ROI), %   24.8      17.3                20.1              
Equity
ratio, %                 80.4      77.8                77.7             

Gearing, %                     -21.0     -20.3               -32.2           
  
Gross investments, EUR 1,000     689       782      -11.9    1,202         
    
Gross investments,                                                       
      
 % of net sales                  1.3       1.5                 1.7     
        
Contingent liabilities,                                              
          
 EUR 1,000                      9,142   16,828      -45.7   11,306 
            
Average personnel                 372      408       -8.8     
400              
Personnel at the end of                                     
                   
 the period                       378      403       -6.2 
    370              
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              

NET SALES BY MARKET AREA                      
                                 

(EUR 1,000)     7-9/    7-9/ Change,  
1-9/    1-9/ Change,  1-12/              
                2010    2009       %
  2010    2009       %   2009              

Finland       13,828  14,183  
-2.5  35,426  36,173   -2.1  52,711              
Other Nordic                
                                                   
 countries     1,881  
2,029   -7.3   5,315   5,317    0.0   7,042              
Rest of Europe 1,382
  1,374    0.6   3,830   3,843   -0.3   4,821              
North America   
935     746   25.3   2,546   2,309   10.3   3,003              
Other         
                                                                 
 countries  
  1,442   1,160   24.3   4,106   4,112   -0.1   4,896              
TOTAL     
   19,468  19,492   -0.1  51,223  51,754   -1.0  72,473              

NET
SALES BY PRODUCT LINE                                                      


(EUR 1,000)     7-9/    7-9/ Change,   1-9/    1-9/ Change,  1-12/         
    
                2010    2009       %   2010    2009       %   2009       
      

Clothing       7,434   7,693   -3.4  20,376  21,253   -4.1  27,466   
          
Interior                                                           
            
 decoration    8,281   8,091    2.3  21,906  21,029    4.2 
32,687              
Bags           3,753   3,708    1.2   8,941   9,472  
-5.6  12,320              
TOTAL         19,468  19,492   -0.1  51,223  51,754
  -1.0  72,473              

SEGMENT INFORMATION                            
                                

(EUR 1,000)             1-9/2010   1-9/2009
 Change, %   1-12/2009              

Marimekko business                     
                                        
 Net sales                51,223    
51,754       -1.0      72,473              
 Operating profit          5,981  
   3,938       51.9       6,291              
 Assets                   40,569
    38,689        4.9      40,967              

QUARTERLY TREND IN NET SALES
AND EARNINGS                                       

(EUR 1,000)             
   7-9/        4-6/        1-3/    10-12/              
                      
     2010        2010        2010      2009              

Net sales         
       19,468      15,747      16,008    20,719              
Operating result
          4,170         588       1,223     2,353              
Earnings per
share, EUR     0.38        0.05        0.12      0.22              

(EUR
1,000)                 7-9/        4-6/        1-3/    10-12/              
  
                         2009        2009        2009      2008             


Net sales                 19,492      15,999      16,263    22,061         
    
Operating result           2,901       1,058         -21     1,845       
      
Earnings per share, EUR     0.27        0.10        0.00      0.17
 


marimekko_interim report_q3_2010.pdf