FINANCIAL MANAGEMENT – COMPANY PRESENTATION RITA KATTILAKOSKI, MA4N0207

AGENDA  INTRODUCTION  HISTORY  PRODUCTS  FINANCES

INTRODUCTION Finnish design firm Based in Helsinki Known for its original prints and colours Products sold in 40 countries More than 140 stores around the world Key markets: Northern Europe, North America, and the Asia-Pacific region 500 employees Public company Founded by Armi Ratia and Riitta Immonen

HISTORY Founded in 1951 Artist friends were asked to apply graphic designs to textiles Garments were first showcased in upscale department store – store display manager Giorgio Armani First introduced in the USA – Jacqueline Kennedy bought eight dresses which she wore througout the 1960´s presidential campaign By 1965, company employed over 400 people Products from fabrics to toys, dinnerware In 1985, company sold to Amer-yhtymä

HISTORY In the beginning of 90´s faced financial problems  almost faced bankruptcy  Company sold to Kirsti Paakkanen, who introduced new business models Publicity through series Sex and the City – clothing and tablecloths with Marimekko prints In 2005, revenue had quadrupled since Paakkanen purchased the company In 2007, New CEO – Mika Ihamuotila In 2007, began to open individually owned Marimekko Concept Stores in the USA and Canada

Products

Net Sales

Financial Situation Share quoted on NASDAQ OMX Helsinki Ltd. Listed in Number of shares 8,089,610

Financial Situation

The results for 2014 were improved in difficult market conditions  Reorganisations and cost savings implemented in Finland and the United States in 2013 and 2014, nonrecurring promotions in Finland, and increased licensing income Operating profit for the comparison year was weakened by write-downs on the tangible assets of the company-owned stores in Beverly Hills, Boston and Oslo In 2014, drop in consumer confidence In 2014, Marimekko continued to invest in growth while focusing on enhancing the operations of its stores, on improving the overall profitability of its business, and on creating even more attractive design and products

Financial Situation

Future The general uncertainty in the global economy is forecast to continue, and this may impact consumers’ purchasing behavior The situation has remained difficult in retailing in Finland, which is particularly important for Marimekko as its domestic market, and this trend appears to be continuing A downturn in purchasing power, and rising unemployment  Marimekko’s retail sales expectations for 2015 are affected Although, sales might be boosted, because new stores were opened in 2014 Most of the investments on building new retail facilities as well as improving data systems supporting business operations

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