Tikkurila as an investment
A leading player in its region
- We are a leading Nordic paint industry professional in our chosen focus markets. The most important markets are Russia, Sweden, Finland and Poland, which account for approximately 80 percent of the Group’s revenue.
- We are the market leader in decorative paints in Russia, Sweden, Finland, and the Baltic countries. Tikkurila relies on strong brands, sustainable products which support the life cycle philosophy as well as on providing expert services to its customers. Strong brands and market leadership are the company’s key competitive advantages.
- We focus on premium paints, which are manufactured in eight production units in six countries. The highest production capacity is located in Russia, where the company has been operating since the 1970s.
- Our customers comprise consumers, professionals and the industry. More than 80 percent of the Group’s revenue is generated by the sales of decorative paints. Furthermore, we serves customers in the wood and metal industries. Our operations are largely based on consumer business as well as renovation and repair, which greatly reduces the company’s sensitivity to economic fluctuations.
Solid financial position
- Strong balance sheet and stable profitability over business cycles
Stable dividend flow: For 2010-2016, historical dividends have corresponded to 69–88% of the operative net income. For 2017, the dividend corresponded to approximately 182 percent of the 2017 net income, excluding items affecting comparability, net of tax. For 2018, the dividend corresponded to approximately 100 percent of the 2018 net income, excluding items affecting comparability, net of tax.
- 2010 EUR 0.70 per share
- 2011 EUR 0.73 per share
- 2012 EUR 0.76 per share
- 2013 EUR 0.80 per share
- 2014 EUR 0.80 per share
- 2015 EUR 0.80 per share
- 2016 EUR 0.80 per share
- 2017 EUR 0.80 per share
- 2018 EUR 0.33 per share
Tikkurila's long-term financial targets
- Revenue: Tikkurila aims for faster than market growth
- Relative profitability: Adjusted operating profit margin over 12 percent
- Return on capital: Operative return on capital employed (ROCE) over 20 percent
- Balance Sheet structure: Gearing less than 70 percent
Paint market is growing
The growth in paint consumption has historically correlated with an increase in the standard of living. The market in Western Europe is relatively mature and there the paint consumption per capita is 8–15 liters. In Central Eastern Europe as well as in the CIS countries, the current decorative paint consumption per capita is significantly lower than in Western Europe. In Russia, for instance, the per capita paint consumption is some 6 liters. The consumption is expected to pick up in Central Eastern Europe and the CIS area as the standard of living increases. Moreover, the improving standard of living in the emerging economies is expected to increase the relative share on higher quality and price category paints.
Increasing demand for premium and medium products
The paints produced and sold in Western Europe are almost exclusively medium or premium products. Economy products have traditionally been popular in Russia, other CIS countries and Central Eastern Europe. The preferences regarding the quality of paint will change towards medium and premium products in the long-term as the standard of living improves in the emerging economies.
Megatrends provide opportunities: Nordic quality from the start to finish
Tikkurila is a pioneer of sustainable painting, surface treatment, and use of colors, and we do it responsibly. We drive sustainable beauty, well-being of people, and longer life of surfaces through our work and products, by using the limited resources of nature and society in a sustainable manner.
For decades, Tikkurila has persistently developed and promoted high-quality and user-friendly surface treatment solutions that are safe for both people and the environment.
Our operations have wide-ranging impacts on society and the environment. Through high-quality products and services and our professional expertise, we protect the environment, enhance the sustainability of building stock and infrastructure, and make spaces more beautiful, thus having a positive impact on the living environment and people’s well-being.
Sustainability customer promises
We drive our portfolio towards maximized performance with minimum environmental impact.
We drive at better resource efficiency with quality, safety and durability on top of our minds.
We are a responsible and active partner in our communities.