Published: 2009-11-05 08:00:00 CET
Marimekko Oyj
Interim report (Q1 and Q3)
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2009
Marimekko Corporation        INTERIM REPORT                                    

                             5 November 2009 at 9 a.m.                       
  

MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2009    
      

In the January-September period of 2009, the Marimekko Group's net
sales fell by
12% to EUR 51.8 million (EUR 59.0 million). Operating profit
fell to EUR 3.9    
million (EUR 8.1 million). Operating profit without
non-recurring items amounted
to EUR 4.5 million (EUR 8.1 million). Profit
after taxes for the period was EUR 
3.0 million (EUR 6.0 million); earnings
per share were EUR 0.37 (EUR 0.75). Cash
flow from operating activities before
financial items and taxes stood at EUR 6.4
million (EUR 5.5 million). The
full-year estimate for 2009 is unchanged: net    
sales are forecast to
decrease by about 10% from the year 2008 and operating    
result is expected
to decline distinctly.                                       

              
                 1-9/      1-9/     Change,   1-12/              
            
                   2009      2008          %     2008              

Net
sales, EUR 1,000          51,754    59,046      -12.3   81,107             

Exports and income from                                                      
  
 international operations,                                                 
    
 % of net sales                 30.1      29.9                27.0       
      
Operating profit, EUR 1,000    3,938     8,111      -51.5    9,956     
        
Operating profit without                                             
          
 non-recurring items,                                              
            
 EUR 1,000                     4,450     8,111      -45.1   
9,956              
Profit before taxes,                                      
                     
 EUR 1,000                     3,985     8,124     
-51.0    9,964              
Profit for the period,                           
                              
 EUR 1,000                     2,962     6,012 
    -50.7    7,378              
Earnings per share, EUR         0.37     
0.75      -50.7     0.92              
Earnings per share without             
                                        
 non-recurring items, EUR       0.44 
    0.75      -41.3     0.92              
Equity per share, EUR          
3.74      3.75       -0.3     3.92              
Return on equity (ROE), %    
  12.8      26.9                24.2              
Return on investment (ROI),
%   17.3      33.8                32.3              
Equity ratio, %          
      77.8      71.8                78.7              

Mika Ihamuotila,
President and CEO:                                             

“The current
year 2009 has been characterised by challenging market conditions. 
The sharp
decline in consumer demand has reduced Marimekko's sales both in      
Finland
and abroad. The situation varies in different markets, but there are no 
clear
signs of improvement on the horizon so far. In these difficult market    

conditions, positive news comes from Japan where trends have been good;
during  
the period under review, five new Marimekko concept stores were
opened in Japan.
A new concept store was also opened in Copenhagen in July.
After the review     
period, Marimekko has opened its refurbished shop in
Stockholm and a new one in 
Tampere, Finland.                                 
                             

During the current year, we have taken action
to improve the cost structure and 
efficiency of operations in order to adjust
our operations to reduced demand and
slow down the fall in profitability. We
have managed to improve the company's   
cash flow by cutting fixed costs and
enhancing the efficiency of working capital
management; in the
January-September period of 2009, the change in working      
capital was EUR
1.4 million (EUR -3.6 million) and cash flow from operating     
activities
before financial items and taxes amounted to EUR 6.4 million (EUR
5.5
million). We believe that the reorganisation of operations, enhanced
efficiency,
and the actions aimed at cutting fixed costs will increase our
potential for    
growth in the coming years.                                 
                   

Despite the difficult operating environment, we are
confident that Marimekko is 
heading in the right direction, and we will
continue our long-term investment in
product development and
internationalisation.”                                  

All of Marimekko's
stock exchange releases are available on the company's       
website
www.marimekko.com under Investors/Releases.                             

For
additional information, contact:                                           

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

MARIMEKKO CORPORATION                                                  
        
Group Communications                                                 
          

Piia Pakarinen                                                   
              
Tel. +358 9 758 7293                                           
                
Fax +358 9 755 3051                                          
                  
Email: 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 over 40 countries. Products with    
Marimekko designs are also
manufactured under licence in various countries. In  
2008, the company's net
sales amounted to EUR 81.1 million. Exports and         
international
operations accounted for 27.0% of the Group's net sales. The Group
employs
about 400 people. The company's share is quoted on the NASDAQ OMX      

Helsinki Ltd.                                                                
  


MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2009  
        

NET SALES                                                          
            

July-September                                                 
                
In the July-September period of 2009, the Marimekko Group's
net sales fell by   
11.0% to EUR 19,492 thousand (EUR 21,913 thousand). In
Finland, net sales fell  
by 10.1% to EUR 14,183 thousand (EUR 15,776
thousand). The difference in        
relation to the comparison period is
partly due to revenues from a one-off      
promotion in the corresponding
period of the previous year. Exports and income  
from international
operations fell by 13.5%, totalling EUR 5,309 thousand (EUR  
6,137 thousand).
                                                              


January-September                                                          
    
In the January-September period of 2009, the Marimekko Group's net sales
fell by
12.3% to EUR 51,754 thousand (EUR 59,046 thousand). Net sales in
Finland        
decreased by 12.7% to EUR 36,173 thousand (EUR 41,413
thousand). Exports and    
income from international operations fell by 11.6%,
totalling EUR 15,581        
thousand (EUR 17,633 thousand). Exports and
income from international operations
accounted for 30.1% (29.9%) 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 in relation
to the comparison period was also increased by revenues  
from individual
promotions and one-off income from sales of licensed products in
the
corresponding period of the previous year.                                 


The breakdown of the Group's net sales by product line was as follows:
clothing,
41.1%; interior decoration, 40.6%; and bags, 18.3%. Net sales by
market area    
were: Finland, 69.9%; the other Nordic countries, 10.3%; the
rest of Europe,    
7.4%; North America, 4.5%; and other countries (Japan and
other regions outside 
Europe and North America), 7.9%.                       
                        

During the January-September period of 2009, the
sales from Marimekko's own
retail shops in Finland fell by 1.8% compared with
the corresponding period in
2008. 
Sales to retailers in Finland decreased by
23.6%. The sharp fall in sales from  
the comparison period was partly due to
significant one-off orders for          
promotions in the first and third
quarters of 2008.                             

MARKET SITUATION             
                                                  

The recovery of the world
economy seems to have begun, but the economic outlook 
for the near future is
still bleak. Retail sales in Finland are forecast to     
continue to fall
during the rest of the year, and employment is expected to     
decline
sharply. (Confederation of Finnish Industries EK: Economic Review, 9   

October 2009). Consumers' confidence in the Finnish economy has improved, but
  
people feel insecure about their own employment prospects. (Statistics
Finland: 
Consumer Barometer, October 2009). In the January-September period
of 2009, the 
value of retail sales in Finland fell by 3.3% (Statistics
Finland: Retail trade 
quick estimate, September 2009). Retail sales of
clothing (excluding sportswear)
fell by 2.9% (Textile and Fashion Industries
TMA). Sales of womenswear fell by  
2.2%, sales of menswear by 5.2%, and sales
of childrenswear by 2.5%. Sales of   
bags declined by 9.2% and sales of home
textiles by 8.7%. In the January-August 
period of 2009, exports of clothing
(SITC 84) fell by 16% and imports by 7%;    
exports of textiles (SITC 65)
decreased by 24% and imports by 26% (National     
Board of Customs, monthly
review, August 2009).                                 

REVIEWS BY BUSINESS
UNIT                                                        

Clothing       
                                                                
In the
January-September period of 2009, net sales of clothing fell by 9.0% to  
EUR
21,253 thousand (EUR 23,367 thousand). In Japan, extremely vigorous growth 

continued. Sales also increased slightly in the market area referred to as
“the 
rest of Europe”. Sales in Finland fell somewhat. In North America and
the market
area referred to as “the other Nordic countries”, sales declined
significantly. 
Exports and income from international operations accounted for
25.8% of net     
sales of clothing.                                          
                   

Interior decoration                                     
                       
Net sales of interior decoration products fell by
15.2% to EUR 21,029 thousand  
(EUR 24,812 thousand). Good growth continued in
Japan. Sales fell sharply in    
Finland and the other Nordic countries. In
North America and the market area    
referred to as “the rest of Europe”,
sales declined slightly. Exports and income
from international operations
accounted for 33.3% of net sales of interior      
decoration products.       
                                                    

Bags                   
                                                        
Net sales of bags
fell by 12.8% to EUR 9,472 thousand (EUR 10,867 thousand). In 
Japan and in
the market area referred to as “the rest of Europe”, good growth   
continued.
Sales in other export markets and in Finland decreased substantially.
Exports
and income from international operations accounted for 32.8% of net     
sales
of bags.                                                                 


Business-to-business sales                                                 
    
Business-to-business sales fell by 9.2%. The fall was mainly due to
substantial 
deliveries for one-off promotions in the corresponding period in
2008, higher   
than one-off orders for promotions during this year. The
continuing downtrend in
the economy during the current year has also
significantly reduced purchases by 
corporate clients.                        
                                     

Exports and international operations  
                                         
During the review period,
uncertainty about economic conditions continued,      
consumer demand
declined further, and customers were cautious about making      
purchases. In
the January-September period of 2009, Marimekko's exports and     
income from
international operations fell by 11.6% and totalled EUR 15,581      
thousand
(EUR 17,633 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. The
  
major countries for exports were Japan, Sweden, the United States, Denmark
and  
Norway.                                                                 
       

In the market area referred to as “the other Nordic countries”,
sales in all    
product lines decreased considerably. Net sales fell to EUR
5,317 thousand,     
which was 31.9% less than the previous year (EUR 7,809
thousand). In addition to
a decrease in sales volumes, the weakening of the
Swedish krona (by about 20%)  
as well as one-off 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 2.0%  
to EUR 3,843 thousand (EUR
3,767 thousand). Sales of bags showed good growth;   
clothing sales grew
slightly. Sales of interior decoration products fell        
somewhat.        
                                                              

In North
America, net sales fell by 19.7% to EUR 2,309 thousand (EUR 2,877     

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
from the    
comparison period by 29.3%, totalling EUR 4,112 thousand (EUR
3,180 thousand).  
The growth was wholly generated by Japan, where sales of
clothing, in           
particular, increased extremely vigorously. The five
new Marimekko concept      
stores that were opened during the review period
were the main source of growth.
At the end of the period, there were a total
of twenty Marimekko concept stores 
and shop-in-shops in Japan.               
                                     

Licensing                             
                                         
Royalty earnings from sales of
licensed products fell significantly compared    
with the corresponding
period of the previous year. The fall was entirely due to
one-off income from
licensing cooperation with H & M Hennes & Mauritz AB,       
recognised in the
second quarter of 2008. During the review period, royalty     
earnings grew
considerably in the United States and somewhat in Finland.       


Production and sourcing                                                    
    
During the January-September period of 2009, the production volume of the
      
Herttoniemi textile printing factory fell by 26%. This was mostly due
to the    
reduction of inventories and collections. After the old printing
machine was    
taken out of use in June, production capacity has diminished
and is in full use.
Production volumes at the Kitee and Sulkava factories
remained at the same level
as in the corresponding period of the previous
year. Subcontract manufacture of 
some products was reduced and their
production transferred to the company's own 
factories during the period.     
                                              

EARNINGS                     
                                                  

July-September           
                                                      
In the July-September
period of 2009, the Group's operating profit fell by 22.6%
on the comparison
period, amounting to EUR 2,901 thousand (EUR 3,747 thousand). 
Operating
profit includes a non-recurring cost provision of EUR 512 thousand    
related
to personnel reductions resulting from savings and efficiency actions.  
The
cost provision actually made was lower than announced earlier (EUR 800     

thousand), because a larger number than anticipated of the employees
dismissed  
decided to work during the notice period or found other employment
within the   
Group.                                                          
               

Operating profit without non-recurring items stood at EUR
3,413 thousand (EUR   
3,747 thousand). In addition to reduced sales,
profitability was affected by    
revenues from one-off promotions in the
corresponding quarter of 2008, larger   
than in the review period. Increased
lease expenses from shops also had a       
negative impact on profitability.
On the other hand, as a result of efficiency  
enhancements and cost saving
actions, fixed costs declined from the             
corresponding period of
2008.                                                   

Earnings per share
were EUR 0.27 (EUR 0.35).                                   


January-September                                                          
    
In the January-September period of 2009, the Group's operating profit
fell by   
51.5% to EUR 3,938 thousand (EUR 8,111 thousand). Operating profit
as a         
percentage of net sales amounted to 7.6% (13.7%). Operating
profit includes a   
non-recurring cost provision of EUR 512 thousand related
to personnel reductions
resulting from savings and efficiency actions. The
cost provision actually made 
was lower than announced earlier (EUR 800
thousand), because a larger number    
than anticipated of the employees
dismissed decided to work during the notice   
period or found other
employment within the Group.                              

Operating profit
without non-recurring items stood at EUR 4,450 thousand (EUR   
8,111
thousand). Operating profit was affected by a sharp fall in sales. The   

difference in relation to the comparison period was also increased by
revenues  
from individual promotions in the corresponding period of 2008,
larger than in  
the review period, as well as significant one-off income from
sales of licensed 
products. Furthermore, increased lease expenses from shops
had a negative impact
on profitability. On the other hand, savings of about
EUR 300 thousand in fixed 
costs compared with the corresponding period of
2008 were achieved through      
efficiency enhancements and cost saving
actions.                                

Marketing expenses for the period
totalled EUR 2,217 thousand (EUR 2,561        
thousand), representing 4.3%
(4.3%) of net sales. The marketing costs in the    
period were lower than
usual. Full-year marketing expenses are at the same level
as in 2008.         
                                                           

The Group's
depreciation amounted to EUR 1,031 thousand (EUR 983 thousand),    

representing 2.0% (1.7%) of net sales. Net financial income totalled EUR 47  
  
thousand (EUR 13 thousand), or 0.1% (0.0%) of net sales.                   
    

Profit for the period after taxes fell by 50.7% to EUR 2,962 thousand
(EUR 6,012
thousand), representing 5.7% (10.2%) of net sales. Earnings per
share were EUR  
0.37 (EUR 0.75).                                             
                  

INVESTMENTS                                              
                      

The Group's gross investments amounted to EUR 782
thousand (EUR 803 thousand),  
representing 1.5% (1.4%) 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
77.8% at the end of the period (71.8% on 30        
September 2008, 78.7% on
31 December 2008). The ratio of interest-bearing       
liabilities minus
financial assets to shareholders' equity (gearing) was -20.3%,
while it was
-6.2% at the end of the corresponding period in the previous year  
(-18.8% on
31 December 2008).                                                   

At the
end of the period, the Group's financial liabilities stood at EUR 0 (EUR

3,820 thousand). The Group's financial assets at the end of the period
amounted 
to EUR 6,091 thousand (EUR 5,704 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 6,723 (5,967) shareholders  
at the end of the period. Of the
shares, 13.6% were registered in a nominee's   
name and 18.0% were in foreign
ownership. At the end of the period, the number  
of shares owned either
directly or indirectly by members of the Board of        
Directors and the
President of the company was 1,090,093, representing 13.6% 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   
2009     
                                                                      

     
                              Number of        Percentage of              
   
                         shares and votes    holding and votes             


1.  Muotitila Ltd                   1,045,200                13.00         
    
2.  Semerca Investment Ltd            850,377                10.58       
      
3.  ODIN Finland                      414,553                 5.16     
        
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. Foundation for                                 
                            
    Economic Education                 50,000    
            0.62              
11. Mutual Fund Tapiola Finland        50,000  
              0.62              
12. Scanmagnetics Oy                   40,000
                0.49              
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                           
   3,730,758                46.40              
Nominee-registered            
     1,095,852                13.63              
Others                      
       3,213,390                39.97              
Total                     
         8,040,000               100.00              

Flaggings             
                                                         
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              
                                                    
During the review period,
a total of 1,430,520 Marimekko shares were traded,    
representing 17.8% of
the shares outstanding. The total value of Marimekko's    
share turnover was
EUR 13,194,771. The lowest price of the Marimekko share was  
EUR 7.50, the
highest was EUR 11.44, and the average price was EUR 9.57. At the 
end of the
review period, the final price of the share was EUR 10.37. The      

company's market capitalisation on 30 September 2009 was EUR 83,374,800 (EUR 
  
95,676,000 on 30 September 2008, EUR 67,134,000 on 31 December 2008).      
    

PERSONNEL                                                              
        

During the January-September period of 2009, the number of
employees averaged   
408 (410). At the end of the period, the Group employed
403 (409) people, of    
whom 16 (16) worked abroad.                          
                          

RISK MANAGEMENT AND MAJOR RISKS                  
                              

Marimekko's risk management policy and the
major risks to the company's business
operations have been detailed in the
2008 Annual Report and Financial Statements
as well as in the interim report
for the first quarter of 2009. No changes have 
taken place in these risk
factors during the period under review.               

In the near future,
the main risks for Marimekko's business are associated with 
general economic
development and the consequent increased uncertainty in the    
operating
environment. In order to manage the risks, business activity         

monitoring and especially cost management have been enhanced.                
  

RESEARCH AND DEVELOPMENT                                                 
      

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

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 framework
for Marimekko's social responsibility
reporting is provided by the G3 guidelines
of the Global Reporting Initiative
(GRI). Detailed information on environmental 
issues and their reporting can
be found in the 2008 Annual Report.              

MARIMEKKO-OWNED RETAIL
SHOP AND SUBSIDIARY IN THE UNITED KINGDOM                
                    
                                                           
The Marimekko
store in London was acquired from Skandium Ltd on 1 April 2009.   
The store's
operations are administered by Marimekko UK Ltd, a subsidiary      

established 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 to the Board of Directors. The term of      
office for the
Board 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
auditors' 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 COMPANY
MANAGEMENT                                                   

Ms 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. Ms
  
Marja Korkeela, Head of Group Communications and Investor Relations and
member  
of the Management Group, left the company on 31 August 2009.         
          

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. Annual
cost savings of about EUR 1.5 million were being sought by      
various
measures.                                                              


MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD                          
    

Completion of statutory employer-employee negotiations                 
        
On 7 October 2009, Marimekko announced that its Group-wide statutory 
          
employer-employee negotiations concerning the entire Group, begun
in August     
2009, 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 that it needed to fill eight new  
positions; where possible, these
positions would be filled by internal          
transfers. Temporary layoffs
have been rejected for the rest of 2009, but       
certain functions will be
prepared for possible lay-offs until 31 May 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. The annual costs of the 
new positions
are estimated at about EUR 0.4 million. The company announced     
that, in
connection with the personnel reductions, it would make a non-recurring
cost
provision of EUR 0.8 million for the third quarter of 2009. The cost      

provision actually made amounted to EUR 0.5 million, because a larger number 
  
than anticipated of the employees dismissed decided to work during the
notice   
period or found other employment within the Group.                  
           

Changes in company management                                   
               
Ms Mervi Metsänen-Kalliovaara, Marimekko's Sales Director and
a member of its   
Management Group left the company on 7 October 2009. As of
7 October 2009, the  
Marimekko Group's Management Group is composed of Mika
Ihamuotila as Chairman,  
with members Thomas Ekström (finance, control and
investor relations), Malin    
Groop (marketing) Päivi Lonka (international
sales), Niina Nenonen (clothing,   
bags and accessories), Piia Rossi
(company-owned retail stores), and Helinä     
Uotila (production, purchases,
and interior decoration).                        

OUTLOOK FOR THE REMAINDER
OF 2009                                               

Marimekko Corporation
operates in a field where economic trends affect its      
business
activities. The majority of the Group's net sales come from Finland. In
recent
years, however, exports have increasingly been driving Marimekko's net  

sales growth. A significant part of the growth has been attributable to the  
  
acquisition of new customers and the opening of concept stores. In 2008,
the    
Group's earnings and growth in net sales were largely attributable to 
         
significant individual promotional deliveries in Finland and one-off
income from
sales of licensed products.                                       
             

In the first nine months of 2009, Marimekko's net sales
decreased and profit    
fell considerably due to a sharp decline in demand
caused by the economic       
recession. The difficult market situation
continues with no signs of recovery   
yet. The downtrend in trade is expected
to continue during the rest of the year,
and it is still difficult to estimate
the trend in consumer demand. Sales trends
in Marimekko's own retail shops
will have a substantial impact on the Group's   
net sales and earnings in the
final quarter of the year. Deliveries during the  
last quarter of 2009 will
include some one-off items that increase net sales and
improve earnings, but
the value of these items will be smaller than in 2008.    
However, the
decline in sales is expected to slow towards the end of the year,  
compared
with the corresponding period the year before, as sales already fell  

considerably both in Finland and abroad in the last quarter of 2008 as a
result 
of the rapid deterioration in market conditions.                      
         

The full-year estimate for 2009 is unchanged: net sales are
forecast to decrease
by about 10% from the year 2008 and operating result is
expected to decline     
distinctly.                                          
                          

Helsinki, 5 November 2009                        
                              

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 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, 30
June                                

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)             7-9/     7-9/     1-9/     1-9/
     1-12/              
                        2009     2008     2009    
2008       2008              

NET SALES             19,492   21,913   51,754
  59,046     81,107              
Other operating                             
                                   
 income                    4       17     
 35       41        244              
Increase or decrease                    
                                       
 in inventories of                    
                                         
 completed and                      
                                           
 unfinished products   1,163    
-528    1,396    2,036        185              
Raw materials and             
                                                 
 consumables           6,695
   8,749   19,212   25,500     33,597              
Employee benefit          
                                                     
 expenses             
4,349    3,946   13,542   13,154     18,287              
Depreciation        
    334      328    1,031      983      1,324              
Other operating   
                                                             
 expenses       
      4,054    4,632   12,670   13,375     18,372              

OPERATING
PROFIT       2,901    3,747    3,938    8,111      9,956             


Financial income           7       52       60      153        205         
    
Financial expenses        -7      -53      -13     -140       -197       
      
                           0       -1       47       13          8     
        

PROFIT BEFORE TAXES    2,901    3,746    3,985    8,124      9,964 
            

Income taxes             741      971    1,023    2,112     
2,586              

NET INCOME FOR                                          
                       
THE PERIOD             2,160    2,775    2,962   
6,012      7,378              

Distribution of                              
                                  
 net income to equity                      
                                    
 holders of                              
                                      
 the parent company    2,160    2,775  
  2,962   6,012      7,378              

Basic and diluted                  
                                            
 earnings per share              
                                              
 calculated on the             
                                                
 profit attributable         
                                                  
 to equity holders of      
                                                    
 the parent              
                                                      
 company, EUR          
0.27     0.35     0.37     0.75       0.92              


COMPREHENSIVE
CONSOLIDATED INCOME STATEMENT                                     

(EUR
1,000)                   7-9/    7-9/    1-9/    1-9/   1-12/              
  
                           2009    2008    2009    2008    2008             


Net income for the period    2,160   2,775   2,962   6,012   7,378         
    
Other comprehensive income                                               
      
 Change in translation                                                 
        
 difference                    -10      11      -9      14      -5   
          

TOTAL COMPREHENSIVE                                              
              
INCOME FOR THE PERIOD        2,150   2,786   2,953   6,026  
7,373              

Distribution of net income                              
                       
 to equity holders of                                 
                         
 the parent company          2,150   2,786   2,953  
6,026   7,373              


CONSOLIDATED BALANCE SHEET                    
                                 

(EUR 1,000)                  30.9.2009   
30.9.2008     31.12.2008              

ASSETS                               
                                          

NON-CURRENT ASSETS               
                                              
Tangible assets                
 9,739        9,807          9,948              
Intangible assets            
     417          380            458              
Available-for-sale         
                                                    
 financial assets        
          20           20             20              
                       
        10,176       10,207         10,426              

CURRENT ASSETS     
                                                            
Inventories      
              15,548       18,958         17,286              
Trade and other
receivables      6,605        7,309          6,109              
Current tax
assets                 268          220            268              
Cash and
cash equivalents        6,092        5,704          6,112              
      
                         28,513       32,191         29,775             


ASSETS, TOTAL                   38,689       42,398         40,201         
    

SHAREHOLDERS' EQUITY                                                   
        
AND LIABILITIES                                                      
          

EQUITY ATTRIBUTABLE TO EQUITY                                    
              
HOLDERS OF THE PARENT COMPANY                                  
                
Share capital                    8,040        8,040         
8,040              
Translation differences            -11           17       
     -2              
Retained earnings               22,044       22,138     
   23,504              
Shareholders' equity, total     30,073       30,195   
     31,542              

NON-CURRENT LIABILITIES                           
                             
Deferred tax liabilities          688          
712            705              
Financial liabilities               -        
  185              -              
                                  688      
    897            705              

CURRENT LIABILITIES                    
                                        
Trade and other payables        7,928
        7,659          7,751              
Current tax liabilities            
-            12             18              
Financial liabilities            
  -         3,635            185              
                               
7,928        11,306          7,954              

Liabilities, total         
    8,616        12,203          8,659              

SHAREHOLDERS' EQUITY
AND                                                        
LIABILITIES, TOTAL
            38,689        42,398         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)                              1-9/      1-9/      1-12/ 
            
                                         2009      2008      
2008              

CASH FLOW FROM OPERATING ACTIVITIES                      
                      

Net profit for the period               2,962    
6,012      7,378              
Adjustments                                    
                                
 Depreciation according to plan         1,031
      983      1,324              
 Financial income and expenses           
-47       -13         -8              
 Taxes                                 
1,024     2,113      2,586              
Cash flow before change              
                                          
 in working capital                
    4,970     9,095     11,280              

Change in working capital      
        1,403    -3,596       -629              
 Increase (-) / decrease (+)
in current                                         
 non-interest-bearing
trade receivables  -486    -1,793       -574              
 Increase (-) /
decrease (+) in                                                 
 inventories 
                          1,737      -677        995              
 Increase
(-) / decrease (+) in                                                 

current non-interest-bearing                                                  

 liabilities                              152    -1,126     -1,050           
  
Cash flow from operating activities                                        
    
 before financial items and taxes       6,373     5,499     10,651       
      

Paid interest and payments on                                        
          
 other financial expenses                 -14      -132       -200 
            
Interest received                          94       168       
201              
Taxes paid                             -1,085    -2,101    
-2,616              

CASH FLOW FROM OPERATING ACTIVITIES     5,368     3,434
     8,036              

CASH FLOW FROM INVESTING ACTIVITIES                
                            

Investments in tangible                        
                                
 and intangible assets                   -782
     -803     -1,362              

CASH FLOW FROM INVESTING ACTIVITIES     
-782      -803     -1,362              

CASH FLOW FROM FINANCING ACTIVITIES 
                                           

Short-term loans drawn          
           -     4,600      4,600              
Short-term loans repaid       
          -185    -2,100     -5,550              
Long-term loans repaid      
               -      -470       -655              
Dividends paid            
            -4,422    -5,226     -5,226              

CASH FLOW FROM
FINANCING ACTIVITIES    -4,607    -3,196     -6,831              

Change in
cash and cash equivalents       -21      -565       -157              

Cash
and cash equivalents                                                       

at the beginning of the period         6,112     6,269      6,269             

Cash and cash equivalents                                                    
  
 at the end of the period               6,091     5,704      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                  
           14      6,012           6,026              

Dividends paid       
                      -5,226          -5,226              

Shareholders'    
                                                              
 equity        
                                                                
 30 Sept.
2008      8,040            17     22,138          30,195             



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              


KEY INDICATORS                       
                                          

                               
1-9/      1-9/    Change,    1-12/              
                             
  2009      2008          %     2008              

Earnings per share, EUR  
      0.37      0.75      -50.7     0.92              
Equity per share, EUR  
        3.74      3.75       -0.3     3.92              
Share of exports and 
                                                          
 international
operations,                                                      
 % of net
sales                 30.1      29.9                27.0              
Return
on equity (ROE), %       12.8      26.9                24.2             

Return on investment (ROI), %   17.3      33.8                32.3           
  
Equity ratio, %                 77.8      71.8                78.7         
    
Gearing, %                     -20.3      -6.2               -18.8       
      
Gross investments, EUR 1,000     782       803       -2.7    1,362     
        
Gross investments,                                                   
          
 % of net sales                  1.5       1.4                 1.7 
            
Contingent liabilities,                                          
              
 EUR 1,000                     16,828   16,843       -0.1  
17,861              
Average personnel                 408      410       -0.5
     411              
Personnel at the end of                                
                        
 the period                       403      409      
-1.5      414              
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/              
                2009   
2008       %   2009    2008       %   2008              

Finland      
14,183  15,776  -10.1  36,173  41,413  -12.7  59,175              
Other
Nordic                                                                    

countries     2,029   2,561  -20.8   5,317   7,809  -31.9   9,423             

Rest of Europe 1,374   1,316    4.4   3,843   3,767    2.0   4,700           
  
North America    746     964  -22.6   2,309   2,877  -19.7   3,994         
    
Other                                                                    
      
 countries     1,160   1,296  -10.5   4,112   3,180   29.3   3,815     
        
TOTAL         19,492  21,913  -11.0  51,754  59,046  -12.3  81,107   
          

NET SALES BY PRODUCT LINE                                        
              

(EUR 1,000)     7-9/    7-9/ Change,   1-9/    1-9/ Change, 
1-12/              
                2009    2008       %   2009    2008      
%   2008              

Clothing       7,693   8,016   -4.0  21,253  23,367  
-9.0  29,898              
Interior                                           
                            
 decoration    8,091   9,847  -17.8  21,029 
24,812  -15.2  37,747              
Bags           3,708   4,050   -8.4  
9,472  10,867  -12.8  13,462              
TOTAL         19,492  21,913  -11.0
 51,754  59,046  -12.3  81,107              


SEGMENT INFORMATION          
                                                  

(EUR 1,000)            
1-9/2009   1-9/2008  Change, %   1-12/2008              

Marimekko business 
                                                            
 Net sales       
        51,754     59,046      -12.3      81,107              
 Operating
profit          3,938      8,111      -51.5       9,956              
 Assets 
                 38,689     42,398       -8.7      40,201             


QUARTERLY TREND IN NET SALES AND EARNINGS                                  
    

(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              

(EUR 1,000)                 7-9/        4-6/   
    1-3/    10-12/              
                            2008        2008 
      2008      2007              

Net sales                 21,913     
18,539      18,594    22,656              
Operating result           3,747   
   2,540       1,824     3,382              
Earnings per share, EUR     0.35 
      0.23        0.17      0.31
 


marimekko_interim report_q3_2009.pdf