Published: 2010-11-04 08:00:00 CET
Marimekko Corporation - 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