YEARBOOK 2011

2011 1

Colour and joie de vivre – 60 years of timeless beauty for everyday life

Marimekko is a Finnish textile and acquired over decades, with its values has been done with accompanying joy clothing design company. The core of and legends, is an inexhaustible trea- and occasionally a little sadness. Always its business is the design and manufac- sure from which it is good to draw cour- together. ture of timeless and individual, practi- age and the strength for renewal, even Marimekko celebrated its 60th anni- cal and beautiful consumer goods. The today. The meaning of Marimekko de- versary with a variety of events in Fin- array of Marimekko design embraces sign is to create aesthetic experiences land and the company’s main markets household products ranging from fur- for every moment in life. abroad. Thank you to all Marimekko’s nishing fabrics to tableware as well as In 2011, 60 rich years of life with beloved and faithful friends around the clothing, bags and other accessories for Marimekko were behind us. Those world for the rewarding path we have people of all ages. years have seen increasingly astonish- walked together. The journey contin- When Marimekko was founded in ing turns, stories engendered by strong ues towards new shared experiences, 1951, the unparalleled patterns and and colourful personalities, breathtak- thousands and yet thousands more of colours of its printed fabrics gave it a ing dreams – fulfilled or not – successes them… strong and unique identity. A heritage and near misses. A great deal of work

CONTENTS

1 ...... Marimekko 60 years! © Marimekko 2 ...... From the CEO Corporation, Puusepänkatu 4, 00880 Helsinki, 4 ...... Our values Finland Tel. +358 9 75 871 6 ...... Design for everyday life info@marimekko.fi www.marimekko.com 10 ...... Highlights of 2011

Cover: Helsinki- 14 ...... Vision, goals and strategy Helsingfors pattern designed by Per-Olof 16 ...... 2011 in figures Nyström to celebrate the Helsinki 1952 20 ...... Responsibility at Marimekko Summer Olympics. The print was put back into produc- 28 ...... Personnel tion for 2012 when Helsinki is at the heart 30 ...... Stakeholder groups of international design debate. 32 ...... Marimekko Village Image by Kati Rapia. 2 FROM THE CEO YEARBOOK

From left: Lynn Shanahan (Mari mekko North America, President), Mika Ihamuotila (President and CEO) and Minna Kemell- Kutvonen (Creative Director) celebrating the opening of the flagship store in New York. From the CEO

“Marimekko makes the world a little better by encouraging people to be themselves and to find beauty in a perfectly ordinary weekday.”

Marimekko celebrated its 60th anni- output capacity of our textile printing East Asia is one of the focus areas versary in 2011. Marimekko’s message factory in Finland, against the prevail- of our international business. In all, about everyday beauty and an unpre- ing trend in our sector. We did this there are now 22 Marimekko stores in tentious attitude to life has carried for several reasons. Printed fabrics are Japan and South Korea, which did real- superbly from decade to decade, and Mari mekko’s soul, and we want them to ly well last year in spite of the fact that I believe that today it is actually more continue to be made in close coopera- retailing in Japan was otherwise close current than ever. We live in a world in tion between design and production. to paralysis due to a variety of reasons. which I feel that people become remote Besides this, the fact that the design- Our sales in the Asia-Pacific region from their real selves and, in the midst ers work near to the place where the grew by a whopping 49%. Encouraged of all the rush, they forget what in the fabrics are printed is enormously useful partly by this trend, this year we will end really matters. We look for happi- in all product development. It is also open the first Marimekko store in China ness in something faraway, although easier to focus on ethical aspects of pro- together with a new partner. The aim you can find it most reliably close by, duction in a plant of our own. These as- is to open a total of 15 stores in China’s in everyday life. Marimekko is usually pects are of increasingly great interest largest cities by the end of 2016. seen in terms of aesthetic and practi- to consumers, so I am convinced that Stimulated by large investments in cal products, but I think Marimekko is maintaining profitable in-house produc- stores, our international sales were up first and foremost about thinking and tion will have a significant impact on by 26% in 2011. In all, the Marimekko attitude. I daresay – even at the risk of the appreciation and attractiveness of Group’s net sales grew by 6%. Our oper- being considered an idealist – that the our brand. ating profit declined, as expected, to more people adopt the Marimekko-style Our network of stores was rein- EUR 3.5 million, mostly due to changes unpretentious attitude to life, the better forced in 2011 by a considerable in the distribution network in line with the world will be. amount relative to our size. In the our distribution strategy, a reduction The theme of our anniversary year course of the year, a total of 17 new, in price-driven promotions, and the was “Why not together?”. We wanted inspirational Marimekko stores were sizable investments we have made in to inspire people to meet each other opened, eight of which were company- internationalisation. and to do things together. I believe that owned. The most important of these was I am optimistic for 2012. We expect much more of this, too, is needed in our own flagship store on Fifth Avenue our net sales to grow strongly and our today’s world. The theme was visible in New York, which achieved success operating profit at least to double. We in the course of the year at events of beyond our expectations. The American have every prospect of success in our the greatest variety around the world, home furnishings retailer Crate and efforts to expand boldly into new areas ranging from exhibitions to discussions. Barrel opened a total of six Marimekko and new cities: we have creative and Enthused by the theme, we arranged, shop-in-shops in its department stores, enthusiastic personnel, an excellent among other events, an ambitious de- including ones in Los Angeles, San product range and store concept, and sign competition aimed at students of Francisco and Chicago. It is our inten- a uniquely attractive brand. Dynamic the world’s leading schools of design, tion to expand the number of company- expansion requires patience of the as well as a unique, close-to-nature owned stores in the United States; in company and its shareholders, but I am fashion show in connection with Tokyo 2012, our target is to open one to three convinced that this will be fruitful for Fashion Week. new stores. In Europe, new stores were Marimekko in the long term. For us, 2011 was a year of sever- opened during 2011 in London, Stock- al very large investments which were holm, Oslo, Copenhagen, and of course important to our future. We tripled the our home country, Finland. Mika Ihamuotila 2011 FROM THE CEO 3 4 OUR VALUES YEARBOOK

Our new values guide us in our daily work

Leadership at Marimekko is based on shared values, the principles that we hold to be important and in which we believe in our everyday work. We have carefully chosen six basic values which inspire and motivate us, guide our choices and help us to achieve our vision. We set the values in the same way as we do everything else – together.

MARIMEKKO SPIRIT to paint with bolder strokes. We at a prerequisite to boldness and crea- Marimekko boldly and directly say what tivity. At Marimekko, we get on with LIVING, NOT PRETENDING we’re thinking, even when our opinions things instead of messing with mere differ. Straight talk achieves much more intentions. There is no point in drawing People should always be them- than is commonly thought. up fine plans if ordinary work is not re- selves, living their own lives and not spected or done properly. The best way playacting for others. We at Mari mekko COMMON SENSE is to get right to work, together. have always sought – and found – the keys to a beautiful everyday life. We Marimekko creates clear products COURAGE, EVEN AT THE RISK OF want to taste the authentic flavour of that do the job rather than complicated FAILURE life, thus finding joy and intensity for and fancy goods. People don’t want to the working day. Once in a while it’s be surrounded by anything unneces- What in the end do you lose if you good to ask if this tastes good or is sary. At Marimekko, we work like the take a step out into something new and there perhaps some off-flavour. Follow- company belonged to all of us. You unknown? At Marimekko you can – and ing fashion and pointless ingratiation need to reach for the heights, but plain should – be bold. Without courage there should be avoided. Usually, you should common sense has to be applied often is no creativity. We accept human fail- just boldly follow your own internal rather than occasionally. Empty wish- ures. It helps to be brave if you don’t beacon. ful thinking should not be cultivated at take things too seriously – and espe- work – or in life. cially not yourself. We develop Mari- FAIRNESS TO EVERYONE AND mekko with a long-term view, because EVERYTHING GETTING THINGS DONE – TOGETHER we want to build something unique and meaningful, even if we have to pay for We at Marimekko are always fair It’s always much nicer to be togeth- it in the short term. This kind of long to everyone and everything. We create er, in good company. Together you can perspective is far too rare in the world products that bring people joy for a long handle the biggest challenges. There’s today. But it lays the foundations for time and cause the minimum of envi- a saying in Finland – “we don’t leave courage – if it doesn’t actually compel it. ronmental impacts. For us, our word is our buddies behind” – and this spirit is our bond, and we also expect the same needed more widely in the world. Doing JOY of all our partners. In an atmosphere things together cultivates an atmo- of fairness, you can have the courage sphere of openness and trust, which is Need we say more? 2011 OUR VALUES 5 6 DESIGN FOR EVERYDAY LIFE YEARBOOK

Emotionally inspired

I joined Marimekko in 1992. Back emotions: joy, calm, relaxed, ener- then there were still designers who had getic, or even silent and brooding. It worked with Armi Ratia in the com- is this desire to combine seemingly pany. Her legacy lived on in them, and contradictory emotions that makes they actively shared this “quiet knowl- Marimekko distinct in today’s world. edge” with me. In fact, my career at When we work with designers, Marimekko has been wonderfully var- we’re always interested in under- ied. I started off as a sales assistant at standing their choice of colourways our flagship store in Helsinki, and then for seasonal collections. Most design- worked my way up to become Mari- ers have an emotional sense of what’s mekko’s Creative Director. This breadth right for each season. Still, we encour- of experience has helped me under- age them to explore new ways of stand the essence of Marimekko – its thinking and approaches to colours. absence of definition, its unexpected- For instance, Kristina Isola has an ness, its permissiveness, its humanity. amazing sensitivity for colours. Over Marimekko is also incredibly Finn- the years she has designed numerous ish. It expresses East and West, the patterns for Marimekko and worked meeting point between two cultures. on her mother’s, Maija Isola’s, print From Scandinavia comes clarity and legacy. I tell our young designers that functionality – from the East emotion finding your own sensitivity requires and prolific decorativeness. Of course, patience and perseverance. each designer also brings a unique, How we name prints is also ex- personal vision to Marimekko. I think ceptional. In the 50s and 60s, the de- one reason why we have retained our signers used to spend an entire week enigmatic essence and appeal is that away from the office to work on the Marimekko combines many contra- names of the new prints in each sea- dictory elements and gives room for sonal collection. Even now our design imagination. work is never formulaic. At times it’s Most important, Marimekko is al- emotional, even crazy, but never dull. ways about strong emotions. Our pas- I am proud to be a part of a creative sion for bright colours and bold black- process that feels like Marimekko. and-white contrasts is unmistakable. And we use silent tones and muted hues to bring out subtle contrasts. Every Minna Kemell-Kutvonen, day we work with the entire gamut of Creative Director 2011 DESIGN FOR EVERYDAY LIFE 7 8 DESIGN FOR EVERYDAY LIFE YEARBOOK

Thoughts of our designers

AINO-MAIJA METSOLA, constructed. Instead, they can be even communicate the present and, to a cer- PRINT DESIGNER: sketchy and rough at times. I think this tain degree, the future as well. These attitude makes us bold and distinct. images have elements of colour, but I’m If I had to define one aspect of more interested in their atmosphere. Marimekko design, it would be that it’s JENNI TUOMINEN, I want them to comment on how sea- much more important to be interesting PRINT DESIGNER: sonal change affects our everyday life. than to try hard to be fashionable. In a When I choose patterns, I want the way, Marimekko is free to explore itself. My designs draw inspiration from textile prints to communicate a unique I was recently inspired by a story nature and animals. I love children’s feeling. You also need to respect the written by a young woman. She posted books and I am a huge fan of Japanese original print pattern. They are like on the Marimekko Tribe website a story aesthetics. I also like to explore flea human beings – you can’t cut them of her moving to a new city and felt markets. Their treasures and little de- to pieces. So when I design a piece to sad about the move. She bought a fab- tails inspire me. A while ago, I designed showcase a certain print, I avoid chang- ric print I designed named Juhannus- a print based on an interesting piece of ing the print too much. taika and described how it brought pavement that I saw in Porvoo, a little happiness to her new home. I find this town near Helsinki. Everyday life in- MAIJA LOUEKARI, story very inspiring and encouraging spires me most when it comes to choos- PRINT DESIGNER: in moments when I feel down in my ing colours. For example, the lively own work. She described how the print colour scheme for the Laivakoira print I want to bring some happiness to was more than a fabric or decorative came from an interesting tea package people’s homes with my patterns and element, and that her whole life was that I saw in a grocery store. colours. I feel designing prints is more captured in the print. This story made I enjoy the good feeling that peo- than illustrating – I’m free to tell stories me feel that I had succeeded in making ple get from my work. I want to delight through my prints. For example, with something important. people and awaken their inner child. my HO-HOI! and Kaiku designs (2004), The idea behind the joyful animal char- I wanted to introduce a sense of out- NOORA NIINIKOSKI, acters of Halihali, this spring’s print door into the interior of homes. HEAD OF FASHION DESIGN: novelty, was based on my research into During the dark winter months, I Northern-American totems. The names often walk by my neighbour’s home I’m always looking for new design of my prints are very descriptive – Hali- and see my Siirtolapuutarha print hang- approaches. I want to achieve a feeling hali is Finnish for “hug-hug”. When de- ing in the window. It is rewarding to of effortlessness by getting a balance signing duvet covers using the Halihali see your design become part of some- between control and out-of-control. print, I wanted people to feel like some- one’s everyday life. I’ve even seen peo- Looseness and fun should be in the de- body was hugging them. ple make pants, skirts and blouses from sign. You never want to be too strict or my prints. In my opinion, that’s wonder- rigid in your thinking. MIKA PIIRAINEN, fully Marimekko. Marimekko has a lot in common FASHION DESIGNER: with folklore and outsider artists. We are always looking for a relaxed human I’m always exploring the here and feeling and high artistic values. Our now. When I’m working on a collec- designs are never overly planned or tion, I build up a series of images that 2011 DESIGN FOR EVERYDAY LIFE 9 10 HIGHLIGHTS OF 2011 YEARBOOK

Marimekko’s 60th anniversary was filled with joyous events Photo: Converse

THE THEME FOR THE of almost four decades in Finland and Helsinki when the Unikko hot-air bal- ANNIVERSARY YEAR WAS for his valuable work in raising the pro- loon made its maiden flight. In honour “WHY NOT TOGETHER?” file of Finnish design abroad, especially of its anniversary, Marimekko also took in the country of his birth, Japan. the show on tour to five other cities. In March, Marimekko launched, During the Milan International Fur- At the end of June, restaurant together with the Aalto University niture Fair in April, Marimekko show- Strindberg opened a Marimekko café School of Art and Design, the Why Not cased the results of a project carried in cooperation with Marimekko on Together? design competition for stu- out in concert with its Facebook fans: Pohjoisesplanadi in Helsinki. dents of the world’s leading schools of items created by fans using Marimekko In August, personnel and retailers design. The competition included three fabrics and videos of a joint workshop were celebrating Marimekko’s 60th an- categories: products for everyday life, of fans and Marimekko staff. At the be- niversary. The highlight of the evening actions and events, and services. The ginning of June, Marimekko attended was a fashion show: people glowing on winners were announced in September. the DMY International Design Festival the stage were dressed in Marimekko Berlin, where visitors were offered treasures from different decades. things to do together and an exchange At the September Habitare fair in of ideas in Marimekko workshops de- Helsinki, Marimekko unveiled the lat- voted to the seasons of the year. est member of its In Good Company In April, a book by Mari Savio product family, the Loistava candle- and Kati Rapia entitled Surrur – Make holder designed by Harri Koskinen, as your own Marimekko was published in part of an installation made of colour- Finnish and English. The book presents ful Folding Fabrics furnishings. Out- the thoughts of seven Marimekko de- side Finland, Marimekko participated signers and products conjured by them in interior decoration and fashion fairs Helsinki Design Museum held a from Marimekko fabrics. Patterns and during the year in cities including broad-spectrum Marimekko exhibi- instructions are included in the book. London, Berlin, Paris, Copenhagen and tion from mid-March till the end of Stockholm. May. This was entitled Marimekko – A During the year, a total of three col- Whole Life: 60 Years of Colours, Stripes lections were launched in partnership and Shapes. During the summer, the between Converse and Marimekko. The exhibition was staged in Vaasa and in first Converse Ɔ Marimekko range of the autumn in Pietarsaari. The Design sneakers hit the shops around the world Museum’s Marimekko retrospective, in February and immediately attracted which has been touring the world since enormous attention. 2003, was staged in six different cities The spring and summer 2012 in Norway; the year-long tour ended in clothing collection was showcased to March 2012. the media and other guests in Octo- Fujiwo Ishimoto, who has designed ber, first in Tokyo and then in Helsinki. some 400 fabric prints for Marimekko, Marimekko’s traditional summer The theme of the show – Moments of was awarded the Pro Finlandia medal show in Helsinki’s Esplanadi Park was Life in Helsinki – was expressed with by the President of Finland in March. held in May, exactly 60 years since the a shallow water tank as a catwalk and The medal was awarded to Ishimoto in first ever Marimekko show. As evening background videos with warm, natural recognition of his distinguished career fell, a familiar pattern drifted over imagery offering glimpses of spring 2011 HIGHLIGHTS OF 2011 11

Spring 2012 collection premiered in Japan, in conjunction with Tokyo Fashion Week.

and summer atmospheres. Marimekko held the year’s first show for guests in Helsinki at the end of March. At the beginning of December, the unveiling was held of a portrait by artist Marjatta Tapiola of Marimekko’s previ- ous CEO, Kirsti Paakkanen.

At our 60th anniversary cele- Photo: Pasi Salminen bration, the guests were dressed in Marimekko treasures from different decades. 12 HIGHLIGHTS OF 2011 YEARBOOK Photo: Neilson Barnard Photo: Neilson Barnard Photo: The NASDAQ OMX Photo: The NASDAQ OMX Stock Market, Inc.

MARIMEKKO’S BOLD COLOURS AND PATTERNS SPREAD OUT OVER THE UNITED STATES

In 2011, a total of 17 new Mari- mekko stores and shop-in-shops were opened. Seven of these were in the United States. The most important open- ing was that of the company’s own flag- ship store on the corner of Fifth Avenue and Broadway in New York, which was given an excellent reception. During the opening week, Mari mekko also intro- duced itself to a large audience of inves- tors and financial media representatives in the Closing Bell ceremony at New York’s NASDAQ. Photo: Neilson Barnard

In April and May, the home furnish- ings retailer Crate and Barrel opened four Marimekko shop-in-shops, in New York, Chicago, Los Angeles and San Francisco, as well as a section specialis- ing in Marimekko products in its online store. Two more Marimekko shops were opened at Crate and Barrel stores in Boston and Miami in September and October. Marimekko also opened its own online store in the United States at the beginning of July. 2011 HIGHLIGHTS OF 2011 13 Photo: Toni Rosvall Photo: Toni

Elle Interiör chose the Vattenblänk pattern designed by Astrid Sylwan as the fabric of the year 2011 in Sweden.

Academician Vuokko Eskolin- Nurmesniemi starts up the new printing machine.

MORE NEW STORES OUTPUT CAPACITY AT THE TEXTILE PRINTING FACTORY Marimekko’s flagship store on TRIPLES Helsinki’s Pohjoisesplanadi was given a total makeover and moved to new In October, Marimekko’s textile premises in February. In November, printing factory took delivery of a new Marimekko opened a new store on printing machine and its output capac-

Uudenmaankatu in Helsinki’s Design ity was tripled at the same time. New Photo: Amanda Hestehave District. At the turn of October-Novem- screen-making equipment came online ber, Marimekko-owned stores were in January 2012. The new printing ma- opened at the Jumbo mall in Vantaa chine uses rotary printing technology, and the Iso Omena mall in Espoo. Mari- and it is considerably faster than the mekko’s store in Vaasa moved into flat screen printing machine acquired in larger premises in June. In Lahti, a new 2004. The flat screen printing machine retailer-owned Marimekko store was can be used to print larger and more Copenhagen Airport opened at the beginning of November. technically demanding patterns. At the beginning of March, Japan’s 21st Marimekko store was opened. It is in Sasebo in the west of Japan. Marimekko’s expansion in Scan- dinavia continued with the opening of company-owned stores in Copenhagen, Stockholm and Oslo in the second half of the year. Photo: Even Knudsen

Majorstuen, Oslo

In December, the second company- owned store in London was opened in the world’s first pop-up mall, Boxpark Shoreditch. The unique concept of the mall brought together a clutch of differ- ent brands in a previously unheard-of manner. 14 VISION, GOALS AND STRATEGY YEARBOOK

Vision, goals and strategy

Asia-Pacific region. In the long run, FINANCIAL GOALS ”Our vision is to be the Marimekko’s objective in North America world’s most admired pattern is to expand the distribution of its prod- ucts through high-end department and SECURING PROFITABLE GROWTH designer and one of the most specialty stores as well as by increas- fascinating design brands.” ing the number of Marimekko stores. š Annual growth in consolidated net sales over 10% In 2012, the aim is to open 1 to 3 š Operating profit as a percentage of net sales 10% š Return on equity (ROE) over 15% company-owned stores in the United š Equity ratio 60% Marimekko’s strengths are the States. The Asia-Pacific region became uniqueness and inherent interest of the Marimekko’s second-biggest market brand, the diversity of the patterns, and in 2011. The excellent trend in sales A STEADY DIVIDEND POLICY the originality of the design idiom. The built confidence in growing interest in company has a long-term international the company’s products in this mar- š The intention is to pay a yearly dividend growth strategy; its goal is to grow and ket area. At the beginning of 2012, š Percentage of earnings per share allocated to dividends at least 50% succeed in the international arena as Marimekko signed a partnership con- a Finnish design company that has a tract with a Hong Kong-based company strong identity. In business develop- who specialises in retailing a range of ment, the focus is on controlled organic fashion and lifestyle brands. The inten- growth in Finland and selected interna- tion of the partnership is to open 15 tional markets. The geographical areas Mari mekko stores in China by the end of emphasis are the regions in which of 2016. the Marimekko brand is already known Every effort is made to boost the or where there is a growing interest in brand’s value through the long-term Marimekko’s design idiom and brand. development of product, store and dis- The key markets are Northern tribution concepts. Another aim is to Europe, North America and the maintain good solvency and liquidity in all market conditions.

ATTAINMENT OF FINANCIAL GOALS

2011 2010 2009 2008 2007 Annual trend in net sales, % 5.7 1.1 –10.7 5.0 8.2

Operating profit as a percentage of net sales, % 4.6 11.1 8.7 12.3 13.6

Return on equity (ROE), % 8.4 18.4 14.8 24.2 27.4

Equity ratio, % 67.2 78.8 77.7 78.7 72.7

Dividend per share, EUR 0.55 0.55 0.45 0.55 0.65

Dividend per profit, % 157.1 72.8 76.3 59.9 67.7 2011 VISION, GOALS AND STRATEGY 15

THE CORNERSTONES OF THE STRATEGY Unique Marimekko spririt and Long-term international growth Unique design and a strong Product assortment based on corporate culture that empha- strategy with a focus on brand a lifestyle concept sises creativity and internal Marimekko stores entrepreneurship

The brand is built to be more in- Growth is sought with new cus- Geographically, the focus is on ar- Leadership is based on shared val- ternational and the profile is raised tomer groups and with product eas in which the Marimekko brand ues which inspire and motivate per- with the help of Marimekko’s innovations. All products must be is already known or where there is sonnel, guide decision-making and unique and fascinating design. functional and timeless. a natural demand. help achieve the company’s vision.

Marimekko’s skills as an expert in The extent of the lifestyle concept Awareness of Marimekko is raised A creative corporate culture that colours and patterns are accentu- will be utilised in launching new mainly through PR in earned emphasises creativity and internal ated more clearly as a factor of product categories. and digital media by utilising the entrepreneurship is encouraged. differentiation. strength of the brand. PR plays The share of in-house product a strategic role especially when the Expertise required particularly High-quality and innovative de- design in the collections will be company is establishing itself in in the internationalisation of the sign expertise is maintained and stepped up and it will be integrated new markets. company will be reinforced. enhanced as a factor boosting better with Marimekko’s strong ex- competitiveness. pertise in patterns. A flagship store will be opened in Operational efficiency will be im- the most important markets. The proved along with systematic work- An unpretentious attitude to life The number of accessories and flagships carry all of Marimekko’s ing and coordination in all business and the fascinating history of the small utensils in the ranges will be product lines and serve as a show- areas. company are a significant part of increased to enhance profitability. case to the buyers of major depart- the brand. ment stores, for example. A job satisfaction survey will be More attention will be paid to prod- carried out annually. uct coordination when building the The distribution network will be collections. expanded in a controlled manner by opening new company-owned In-house production has a central stores, retailer-owned Marimekko role in product development. stores and shop-in-shops.

Selective co-branding and More profitable retail store and licensing. distribution concepts will be built, which will reinforce the brand’s competitiveness and attractiveness in the different distribution channels.

E-commerce and selected other dis- tribution will increase sales and im- prove the availability of products. 16 2011 IN FIGURES YEARBOOK

2011 in figures

MARIMEKKO

š Design company established in 1951. NET SALES BY MARKET AREA š Three product lines: clothing, interior decora- tion, bags. š Three manufacturing plants in Finland: a textile (EUR 1,000) 2011 2010* Change, % printing factory, a sewing factory, and a bag Finland 49,807 51,277 –2.9 factory. š Net sales of EUR 77 million and brand sales1 Scandinavia 7,518 7,045 6.7 of Marimekko products worldwide of approxi- Central and Southern Europe 6,691 5,248 27.5 mately EUR 170 million. š The number of Marimekko stores and shop-in- North America 4,960 4,020 23.4 shops2 totalled 90 at the year end. The com- Asia-Pacific 8,466 5,707 48.3 pany’s own retail stores numbered 37. š The key markets are North America, Northern Total 77,442 73,297 5.7 Europe and the Asia-Pacific region. š Marimekko products are sold in approximately * Due to adjustments made in internal sales reporting structures, the previously reported sales figures by market area have changed. 40 countries. š Subsidiaries in Germany, Sweden, the United Kingdom and the United States. š Personnel of 434.

Net sales by market area 2011 Brand sales by market area 2011 Number of stores by market area 2011

1 1 1 2 2 2 3 3 3 4 4 4 5 5 5

1 Finland 64% 1 Finland 52% 1 Finland, 42 2 Scandinavia 10% 2 Scandinavia 8% 2 Scandinavia, 10 3 Central and Southern Europe 9% 3 Central and Southern Europe 8% 3 Central and Southern Europe, 5 4 North America 6% 4 North America 11% 4 North America, 11 5 Asia-Pacific 11% 5 Asia-Pacific 21% 5 Asia-Pacific, 22

1 Estimated sales of Marimekko products at consumer prices. Brand sales are calculated by adding together the company’s own retail sales and the estimated retail value of Marimekko products sold by other retailers. The estimate, based on Marimekko’s actual wholesale sales to these retailers, is unofficial and does not include VAT. This key figure is not audited.

2 Includes the company’s own retail stores, retailer-owned Marimekko stores and shop-in-shops with an area exceeding 30 sqm. 2011 2011 IN FIGURES 17

Number of international Marimekko stores 2007–2011

60

50

40

30

20

10 2007 2008 2009 2010 2011 0

Scandinavia Central and Southern Europe

North America Asia-Pacific

BRAND SALES OF MARIMEKKO PRODUCTS BY MARKET AREA

(EUR 1,000) 2011 2010 Change, % Finland 88,557 82,477 7.4

Scandinavia 13,139 13,283 –1.1

Central and Southern Europe 13,551 11,338 19.5

North America 18,119 18,902 –4.1

Asia-Pacific 35,191 23,717 48.4

Total 168,557 149,717 12.6

Trend in net sales and operating profit 2007–2011 Trend in international sales 2007–2011

100 24 24% 30 42 42%

20 20% 35 35% 80 25

16 16% 20 28 28% 60

12 12% 15 21 21% 40 8 8% 10 14 14%

20 4 4% 5 7 7% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 0 0 0% 0 0 0%

Net sales, EUR million International sales, EUR million Operating profit, % of net sales International sales, % of net sales 18 2011 IN FIGURES YEARBOOK

MAJOR EVENTS IN MAIN MARKET AREAS

NORTH AMERICA NORTHERN EUROPE THE ASIA-PACIFIC REGION

š A flagship store opened in New York š Company-owned stores were opened in š Due to strong sales growth, the Asia-Pacific in October. Stockholm, Oslo, Copenhagen and London. region became Marimekko’s second-biggest š Crate and Barrel opened six Marimekko shop- š Five new stores were opened in Finland. market. There are 21 retailer-owned Marimekko in-shops and in its stores. š Marimekko’s headquarters and three manufac- stores in Japan and one in Seoul, South Korea. š Marimekko’s online store opened in July. turing plants are located in Finland. š In 2012, the company is going to enter the š Two subsidiaries were established in Chinese market. the United States.

KEY FIGURES 2011 2010 Change, % Net sales, EUR 1,000 77,442 73,297 5.7 Do you need more information? Operating profit, EUR 1,000 3,528 8,169 –56.8 Comprehensive information about % of net sales 4.6 11.1 Marimekko’s business develop- Profit before taxes, EUR 1,000 3,715 8,223 –54.8 ment can be found in a separate report, Financial Statements 2011. % of net sales 4.8 11.2 You can read and order the report Net profit for the financial year, EUR 1,000 2,826 6,072 –53.5 on our website % of net sales 3.6 8.3 company.marimekko.com Earnings per share, EUR 0.35 0.76 –53.9 under Releases / Annual Reports. Equity per share, EUR 4.06 4.26 –4.7 Dividend per share, EUR 0.55 0.55 Return on equity (ROE), % 8.4 18.4 Return on investment (ROI), % 11.4 25.0 Equity ratio, % 67.2 78.8 Share of international sales, % of net sales 35.7 30.0* Personnel at year-end 434 388 11.9

*Due to adjustments made in internal sales reporting structures, the previously reported sales figures by market area have changed. 2011 2011 IN FIGURES 19 20 RESPONSIBILITY AT MARIMEKKO YEARBOOK

Responsibility at Marimekko

Good design, in-house production, and responsible procurement all play significant roles in responsible operations.

The interest of stakeholder groups, Embedding responsibility profound- ”I especially enjoy when especially consumers and the media, in ly into the Marimekko strategy is key in people wear a Marimekko responsibility issues, ecological prod- securing sustainable development. Just ucts, and supply chains keeps becom- like in other companies, Mari mekko’s piece almost down to the ing stronger. According to a survey operations are guided by the mega- last thread. It means that you carried out in 2011, Marimekko’s loyal trends of responsibility. customers are somewhat ready to make have a special relationship a personal effort to promote more ethi- RESPONSIBILITY MANAGEMENT with the item.” cal products by paying a higher price for the products, for example. Some of The target set for Marimekko’s Mika Piirainen, designer the respondents did not, however, have social responsibility involves making enough knowledge about the ecological responsibility, that is based on side of Marimekko products. Responsi- shared values and objectives, an in- bility-related communications were tegral part of all operations. Mari- Design is at the core of Mari- enhanced, and the company launched mekko’s aim is to continuously mekko’s business. The choices made in a new responsibility section on its web- develop its social responsibility design and product development signifi- site in the summer of 2011. Durability is management system. In the coming cantly affect the environmental impact essential in measuring how ecological years, the company will focus par- of the product lifecycle. Timelessness, a product is. When cared for correctly, ticularly on developing responsible quality, and functionality are the corner- Marimekko products bring pleasure to design and procurement. stones of responsible design. their users for a long time. As the company’s product port- Marimekko’s steering group for folio grows, production requires more social responsibility has five members. subcontractors, which means that the The group’s task is to evaluate how well portion of external producers in the the objectives previously set for social supply chain increases. This is why, responsibility have been achieved, to in the future, Marimekko will increas- set new objectives, and to monitor proj- ingly pay attention to its supply chain Marimekko stores and websites ects that promote social responsibility. management and monitoring. Mari- guide customers to take special The business units and functions mekko has a quality manual in use that care of their Marimekko products, of the company are each responsible sets the requirements for the suppliers as approximately two thirds of the for their own responsibility, monitoring, and helps the company to secure high environmental impact of the whole collecting information, and reporting. product quality and responsible ways of lifecycle of a consumer textile arti- Especially designers, communications, operation throughout the supply chain. cle occur during its use. quality control, and procurement carry Marimekko is committed to allocating important roles in actualising corporate more effort to the auditing of its suppli- responsibility. All of these functions ers. In addition to improving transpar- are represented in the steering group. ency, audits create opportunities to Implementation is coordinated by the develop the supply chain. company’s corporate responsibility manager. 2011 RESPONSIBILITY AT MARIMEKKO 21 22 RESPONSIBILITY AT MARIMEKKO YEARBOOK

INTERNAL AND EXTERNAL resist wear. Testing is also done to en- ECOLOGICAL MATERIALS COMMITMENTS STEER sure that products that do not meet MARIMEKKO’S OPERATIONS Marimekko’s quality requirements are As part of its research on responsi- not allowed in commercial production. ble product development, Mari mekko Marimekko’s operations are steered by The most important certificate for has started to review the fibre dis- the following commitments: the materials used in Marimekko’s prod- tributions of its collections. In 2011, šInternational Labour Organisation’s ucts is the Öko-Tex standard, which Marimekko classified most of the fi- (ILO) agreements that define the ba- by research guarantees that a product bre materials in use according to the sic rights of employment does not contain substances harmful to MADE-BY benchmark on a scale from šUN Global Compact initiative humans or nature. Marimekko bed linen A to E, in which the fibres belonging to šMarimekko Code of Conduct and terry-cloth products, nearly all fab- the classes A to C are defined as eco- šBusiness Social Compliance Initiative rics printed in Herttoniemi, and several logical. MADE-BY’s fibre benchmark (BSCI) Code of Conduct clothing materials and knits have been covers the phases from the origin of a granted the Öko-Tex certificate. These raw material until spinning. Unclassi- DESIGN certificates are on the Öko-Tex standard fied fibres include the fibres of whose levels of I or II. impact there is not yet reliable enough Design is at the core of Mari- In its operations, Marimekko also information available. mekko’s business and one of its most follows the Registration, Evaluation, Marimekko’s objective is to in- important focus areas of responsibil- Authorisation and Restriction of Chemi- crease the share of ecological materials ity. The choices made in design and cals (REACH) regulation set by the EU in to 20% by the year 2015. Setting these product development affect the envi- 2007. Under this regulation, Marimekko objectives – and achieving them – is a ronmental impact of the product life- is defined as an industrial downstream challenge, however, as many factors cycle. A well-designed, timeless and user, who has no obligation to register affect the material distribution of the functional, quality product brings joy its products. In its print production in collections. For each product, it is nec- to its user for a long time and is thus Herttoniemi, Marimekko only uses pre- essary to also consider its possibilities a sustainable choice. registered chemicals. As an importer of of commercial success, which is why objects from outside the EU, Marimekko all ideas for ecological materials do not In 2011, Marimekko continued is by particular terms obliged to report to make it to production. Some ecological its research on responsible product the European Chemicals Agency (ECHA) materials only allow a limited number develop ment that is looking to find out and downstream users if any product of colours or do not meet Marimekko’s the environmental impact of different imported by it contains a certain amount strict quality criteria, for example. materials as well as to answer some of any substance of very high concern. It is important to set targets even questions about product lifecycles. After Consumers are entitled to know what if all targets cannot always be reached. knowing the impact of the whole life- chemicals are contained in a product. The share of ecological materials in the cycle of each product, Marimekko can collections grows along with the target- better recognise the phases where the setting. Marimekko products are made environmental footprint of a product can of many raw materials, of which cot- best be influenced. ton is the most important. Its produc- Marimekko actively tries to reduce ”My mother wanted to buy tion chain is varied, complex and hard the environmental burden caused by quality clothes for her four chil- to trace. Some of Marimekko cotton production by choosing more ecologi- products meet the requirements of the cal materials, for example. In addition, dren, and the shirts were often Global Organic Textile Standard (GOTS). the durability of its products is system- passed down from one sibling In addition to these organic cotton atically being tested in the company’s items, the selection also includes eco- own test laboratory. The purpose of to the other. So they had to be cotton products. Eco cotton has been testing is to make sure, for example, durable and well made.” grown without pesticides or fertilisers that the care instructions of Marimekko harmful to nature. Moreover, its produc- products help to prolong the life of the Maija Louekari, designer tion process has been certified and all products and that the chosen materials origins can be traced. 2011 VASTUULLISUUS MARIMEKOSSA 23

Each Marimekko product has been designed in Finland

”For us, there is no clear boundary where design ends and production takes over. It is this continuity in de- sign and production that has helped make Marimekko unique and consis- tent over the past sixty years. What’s vital here is the special relationship between the designer and our in- house production teams. Many com- panies just take the freelance design- er’s idea into production and leave it at that. No relationship is established, and the designers never see what happens to their work again. We are constantly experimenting with new materials and printing techniques, but the human hand of our designers will always be a part of Marimekko.”

Petri Juslin, Artwork Studio Manager 24 RESPONSIBILITY AT MARIMEKKO YEARBOOK

INDICATORS OF ENVIRONMENTAL RESPONSIBILITY 2011 2010 2009 Power consumption1, MWh 2,305 1,482 2,275 Heating energy consumption2, MWh 2,696 3,147 2,4363 Natural gas consumption2, MWh 4,373 3,878 4,121 Water consumption2, m3 32,270 16,395 28,501

1Applies to the Herttoniemi textile printing factory and property and the Kitee and Sulkava factories. 2Applies to the Herttoniemi textile printing factory and property. 3Previously mistakenly reported 2,392 MWh.

Marimekko actively participates The investment was also intended to offices and to increase the environmen- in cooperation projects with the aim of prepare for higher future demand and tal awareness of staff. In all of its own minimising its environmental impact. to expand possibilities for product premises, Marimekko aims to use elec- In 2011, Marimekko took part in a pilot development. tricity of which as much as possible has project to do a rough lifecycle analysis Marimekko’s long-term objective been produced by renewable energy. for certain Marimekko bags produced is to reduce the generation of waste In 2011, green electricity accounted for in different places of different materi- and leftover materials in both design approximately 60% of the total power als. The study aimed to gain an under- and production. The testing and quality consumption of the company’s own standing of which process phases cause control of products and materials will premises. The company aims to save the biggest environmental impact and also be further systematised. The com- energy in its operations by develop- what this impact is. The research part pany aims to improve the management ing its production methods, by invest- of the lifecycle analyses was provided of the whole order-delivery chain and ing in energy-efficient machinery and by Tampere University of Technology. to further increase the transparency of devices, and by monitoring its energy The project was mainly financed by the its supply chain through, for example, consumption. Finnish Funding Agency for Technol- membership of BSCI. Marimekko is living through a pe- ogy and Innovation TEKES. riod of strong internationalisation. The MARIMEKKO OPERATES WITH growth of recent years has demanded IN-HOUSE PRODUCTION CONSIDERATION FOR THE several expansions and renovations in ENVIRONMENT the Marimekko house in Helsinki. These LONG-TERM DEVELOPMENT NEEDS have had an impact on the environmen- Taking care of the environment is tal footprint of the premises. In 2011, Marimekko owns three production one of the basic pillars of Marimekko’s the Marimekko house went through facilities that are all located in Finland. operations. The most important consid- extensive renovations which, among In-house fabric printing creates a sig- erations for the company are related other things, substantially increased the nificant competitive advantage. The to energy and water consumption and amount of mixed waste. The renova- company considers maintaining its waste. A significant part of Mari mekko’s tions will continue during 2012. It is own, profitable production in Finland environmental monitoring is based on also likely that the new printing ma- important now and in the future. Mari- legislation and other regulations by chine and the related increase in the mekko believes that in-house produc- authorities. Strong growth phase pre- metres printed will cause the compa- tion will support the company’s product sents a challenge to controlling the ny’s water consumption to rise in the development and role as a forerunner in company’s environmental footprint, as future. The washing machine used in pattern design. the consumption of materials and en- the printing factory will be renewed in At the end of 2011, Marimekko ergy increases along with the growing the coming years. A new machine will invested in a new printing machine production. use less water than the one currently that tripled the output capacity of the The Marimekko head office in in use. textile printing factory in Helsinki. The Herttoniemi, Helsinki, is a Green Office Waste from Marimekko production additional capacity is being deployed building certified by WWF Finland. At is properly managed and sorted. The gradually. In 2011, Marimekko printed the end of 2011, the company’s office amount of mixed waste is minimised by 1.5 million metres of fabric (1.1 mil- staff numbered 164, which represented recycling. The generation, recycling, and lion metres in 2010). The added ca- 38% of the whole personnel. The objec- sorting of waste are followed through pacity helped shorten delivery times tive of the Green Office programme is operational reports and statistics. and improved production efficiency. to reduce the environmental burden of Packaging materials are reused 2011 RESPONSIBILITY AT MARIMEKKO 25

Geographical breakdown of manufacturing

1 2

1 EU countries 81% 2 Non-EU countries 19%

Manufacturing for products sold in 2011 according to Marimekko’s main countries for manufacturing were Finland 36%, the Baltic the country of origin was divided as follows: countries 32% and Portugal 11%. Outside the EU, the biggest manufacturing EU countries 81%, non-EU countries 19%. countries were Thailand and China.

according to the related EU directive. country. However, the share of suppli- is complex, which is why the company Ecological considerations play an im- ers from developing areas has slowly cannot fully guarantee that the operat- portant role in the design of Mari mekko grown. Introducing new products and ing models of all suppliers in its supply product packaging. The company’s materials to the collections has widened chain completely meet the require- agreements with suppliers and other Marimekko’s supplier network. Many of ments set by Marimekko. Improving collaborators require that the part- the suppliers used by the company are the transparency of the supply chain is ners are committed to environmental long-term partners, and no less than one of the focus points of responsibil- responsibility. 70% of the subcontracted products are ity at Marimekko. Challenges related made by the 25 biggest suppliers. to ecology and ethics are considered a RESPONSIBLE PROCUREMENT The goal of procurement is to find common cause in the industry, so no the most competent maker for each company needs to work on them alone In addition to in-house produc- product. Many products require special anymore. tion, Marimekko items are manufac- manufacturing skills that the company tured by subcontractors in Finland lacks or that are not available in Finland Certificates and standards guide the and abroad. Guaranteeing an ethical or the neighbouring area. Production operations chain of suppliers is based on the quantities, costs, delivery times, and transparency of the supply chain. quality requirements also influence the Marimekko aims to use certified Marimekko belongs to an organisation procurement decisions. Corporate re- suppliers with valid international or working to develop the transparency sponsibility is another aspect consid- industry-relevant standards or certi- and ethics of supply chains. ered in the decision-making. New part- ficates. These include the ISO 9000 ners are required to commit themselves and ISO 14000 standards, the Social Marimekko’s business model is to the shared Marimekko way of work- Account ability SA 8000 standard, and challenging with regard to the supply ing from the beginning of cooperation. the Öko-Tex Standard 100 certificate. chain. Considering the size of the com- All Marimekko products are la- Cooperation agreements between pany, the range of Marimekko products belled with the country of origin in Marimekko and its subcontractors re- is very wide, including household items order to increase production transpar- quire the parties to follow the basic rules from furnishing fabrics to tableware as ency. Of the products sold in 2011, 81% of the ILO and to operate in accordance well as clothing, bags and other acces- were made in EU countries and 19% in with internationally recognised social sories. For each product, its maker is non-EU countries. The biggest manufac- and ethical norms. always primarily chosen according to turing countries were Finland 36%, the the best expertise. Seasonal collections Baltic countries 32%, and Portugal 11%. BSCI membership and other initiatives four times a year have an impact on the Outside the EU, the biggest manufactur- turnover of suppliers, as new products ing countries were Thailand and China. Marimekko became a member of often require new expertise. the Business Social Compliance Initia- DEVELOPING A TRANSPARENT tive (BSCI) in November 2011, where- UTILISING A COMPETENT SUPPLIER SUPPLY CHAIN TOGETHER WITH THE upon the company’s operating princi- NETWORK INDUSTRY ples were updated and new targets were set for factory audits. The objective is to Marimekko products are made Globalisation will increasingly in- cooperatively streamline the auditing by subcontractors both in and outside fluence Marimekko’s business, con- process and achieve synergy benefits Finland. Most of the products manu- stantly placing new demands on the for the members by combining audit factured abroad are made in an EU operations. Marimekko’s supply chain visits. BSCI strives to promote social 26 RESPONSIBILITY AT MARIMEKKO YEARBOOK

KEY FIGURES, SUPPLY CHAIN 2011 2010 2009 ISO 14000 certified suppliers 18 15 17 SA 8000 certified suppliers 4 7 7 BSCI audited suppliers 6 6 5

responsibility and to improve working In the long term, Marimekko aims to ensure product quality and safety. conditions in the global supply chain. to increase the transparency of its sup- The company’s long-term objective is to BSCI is a European business-driven ply chain and to expand the review of make sure that all of its suppliers sign initiative which performs audits of sup- the chain beyond suppliers. Marimekko’s operating principles and pliers in risk countries. The definition of In 2011, Marimekko added the commit themselves to improving work- risk countries is based on the UN Human BSCI Code of Conduct to its purchase ing conditions in their factories. Development Index and the Corruption agreements. The Code is based on the Marimekko is also involved in Perception Index of Transparency Inter- ILO agreements, the OECD Guidelines the Nordic Initiative Clean and Ethical national. The initiative has been signed for Multinational Enterprises, the UN (NICE) coordinated by the Nordic by more than 700 companies. Global Compact Principles, and the UN Fashion Association. Participation is Marimekko has been focusing ef- Declaration of Human Rights. The pur- considered important for the company forts on the management of its supply chase agreements also require that sup- in order to obtain more information and chain for some time already, but the pliers are committed to environmental exchange views on corporate responsi- BSCI membership has provided new responsibility bility with the rest of the industry. tools for monitoring the chain. Work As part of developing its procure- started in 2011 with a review of the sup- ment process, Marimekko also partici- plier base; the first supplier audits will GOALS OF BSCI CODE OF CONDUCT pates in the multidisciplinary GlobeNet be carried out in 2013. Factory audits research initiative started in 2009 by will be performed in risk countries and š Freedom of association and the right to collec- Nordic universities and companies. the results will be reported in the BSCI tive bargaining are respected. This research investigates, among other š No discrimination is practised. database for all members. Marimekko things, the impact of changes in the busi- š Child labour is prohibited. also aims to improve working conditions š Legal minimum and/or industry standards ness environment on the supply network. in the factories in cooperation with BSCI, wages are paid. for example through training. Supplier š Working hours are compliant with national laws turnover is a challenge to systematic and do not exceed 48 hours regular + 12 hours monitoring. Marimekko’s product range overtime in a week. š There is no forced labour and disciplinary changes seasonally, and production sites measures. may change accordingly. š The workplace is safe and healthy. BSCI members are required to in- š The environment is respected. Would you like to know more? clude in the BSCI process those suppli- š There is a policy for social accountability. ers in risk countries who represent one š There is an anti-bribery and anti-corruption Our website company.marimekko.com third of all purchases. The most signifi- policy. will provide you with straightforward cant BSCI risk countries in Marimekko’s and practical information about our supply chain are Thailand, China, and corporate responsibility. India. However, 81% (83) of the Mari- In addition to purchase agree- mekko products are made in EU coun- ments, Marimekko’s quality manual pro- tries, which are not on the risk list. vides guidance to suppliers and helps 2011 RESPONSIBILITY AT MARIMEKKO 27 28 PERSONNEL YEARBOOK

Personnel

At Marimekko, we have always believed in being genuine, fair and coura- geous, and in the power of working together. Marimekko personnel are skilled, creative, and very committed. These ingredients create a strong corporate culture and a good team spirit, which are important pillars in the company’s strategy. The Marimekko spirit, incorporating the com- pany’s values, guides and inspires the staff in their daily work.

INTERNATIONALISATION qualification in sales continued with a OFFERS BOTH POSSIBILITIES new group of participants starting in the AND CHALLENGES autumn. Efforts were also focused dur- ”There is an incredible ing the year on IT and language training, creative atmosphere at Marimekko is experiencing a pe- with the aim of promoting even smooth- riod of strong growth, which calls for er handling of duties in an international Mari mekko. It affects every- more and more expertise in interna- business environment. A year-long one: the design teams, the tional business. Employees in different training programme for managers was positions will have increased opportuni- launched in 2012. The goal is to define people working in produc- ties to work in a multicultural environ- what Marimekko leadership is as well tion, the artwork studio team, ment and develop their competencies. as to improve managerial skills and the marketing, and sales.” Internationalisation is reflected in the consistency of work quality. All this aims growing number of employees, and at ensuring that every Marimekko em- more and more Marimekko personnel ployee feels well at work every day. Pirkko Heikkilä, are working outside Finland. In 2011, Design Manager for Marimekko’s the number of the group’s person- STRONG CONFIDENCE IN THE Interior Design nel increased by 11.9%. At the end of MANAGEMENT’S VISIONS AND the year, Marimekko had 434 (388) THE FUTURE OF THE COMPANY employees, of whom 63 (26) worked abroad. The number of personnel was In autumn 2011, the annual job boosted in particular by the expansion satisfaction survey had an excellent of the country organisation’s operations response rate of 88%. The overall re- in the United States, the opening of a sults were very positive. According to company-owned flagship store in New the survey, the personnel’s confidence York, and the growth of the store net- in the management’s visions and the work in Northern Europe. future of the company is at an excep- tionally high level compared to other WELLBEING AT WORK IS service-production organisations (norm ENHANCED AS A SYSTEMATIC for comparison). The internal image of WHOLE the organisation was also highly posi- tive; four out of five Marimekko employ- Wellbeing at work is a multidimen- ees were prepared to recommend the sional whole, each part of which affects company as an employer. Most room the workplace atmosphere and the abil- for improvement was found in inter-unit ity of each employee to succeed in their cooperation and in managerial skills. job. In 2011, Marimekko focused special Marimekko conducts a job satisfaction effort on developing HR processes and survey every year. The results are re- tools, streamlining recruitment meth- viewed by the managers together with ods, and supporting the work of man- their staff and taken into account when agers. Extensive training leading to a making unit development plans. 2011 PERSONNEL 29

KEY FIGURES, PERSONNEL 2011 2010 2009 Average number of employees 402 376 400 Salaried 301 265 275 Non-salaried 101 111 125 Personnel at the end of the year 434 388 370 Personnel turnover rate, number of employees New 106 58 29 Leaving 60 36 67 Retired 5 4 7 Joining turnover rate, % 24.4 15.0 7.8 Leaving turnover rate, % 13.8 10.3 20.0 Average age of employees, years 40 41 41 Employees Women, % 88.2 90.5 91.1 Men, % 11.8 9.5 8.9 Members of the Board of Directors Women, % 16.7 20.0 20.0 Men, % 83.3 80.0 80.0 Members of the Management Group Women, % 66.7 66.7 71.4 Men, % 33.3 33.3 28.6 Sick leave absences1, % 3.8 4.8 8.9 Healthcare expenses/person2, EUR 472 392 352 Training expenses/person3, EUR 333 407 339

1 Calculated on theoretical regular working hours. 2 Includes investments in preventive healthcare and medical care; applies to Marimekko personnel in Finland. 3 Excluding salaries paid for training days; applies to Marimekko personnel in Finland. 30 STAKEHOLDER GROUPS YEARBOOK

Stakeholder groups

Stakeholder groups continue to become more and more interested in responsibility issues and the ecological acceptability of products.

IDENTIFYING STAKEHOLDER regarded as more responsible by the reporting verified by a third party. In the GROUPS’ EXPECTATIONS personnel than by loyal customers. Ac- near future, Marimekko will concentrate cording to the survey, both the person- on improving its data collection systems. In 2011, Marimekko conducted nel and loyal customers are interested a survey to examine the attitudes of in more reasonable consumption. The SUPPORT FOR LOCAL its customers and personnel towards survey was carried out by Kausaali Oy. COMMUNITIES corporate responsibility. The survey consisted of questionnaires to three STAKEHOLDER Marimekko participates in selected groups: loyal customers, personnel, COMMUNICATIONS charity projects. In 2011, the company and early adopters. The loyal-customer supported the victims of the Japanese survey aimed to identify changes in Even though stakeholders in the earthquakes by producing a special consumer behaviour as well as the aforementioned survey clearly indicat- run of Unikko-patterned fabric bags. changes needed in Marimekko’s cur- ed that the importance of sustainabil- All proceeds from the sales of the bags rent corporate responsibility. The pur- ity issues increases in the future, more were donated to Japan through the pose of the early-adopter survey was to than 40% were not able to assess how Red Cross. Marimekko also participated gain an understanding of the responsi- ecological Marimekko products are. For in supporting the Aalto University bility requirements of future customers. this reason, the company considers it and the peer student activities of the The survey of Marimekko’s personnel very important to intensify its consumer Mannerheim League for Child Welfare was carried out to determine the pre- communications. In 2011, Marimekko in Finland. paredness of the organisation to adopt launched a new corporate website that responsible practices. presents consumer-friendly information ECONOMIC IMPACT FOR According to the survey, stake- on responsibility and how to enhance the STAKEHOLDERS holders expect Marimekko to integrate ecological performance of a product with responsibility into its operations and proper use and care. Achieving a good financial result assume responsibility for the whole pro- It is important to provide information by responsible means is of increas- duction chain. Transparency and trace- on the care and cleaning of products be- ing importance to all of the company’s ability of information were considered cause proper care helps to maximise the stakeholders. Responsible practices particularly important. life of a product. According to relevant help secure the company’s competi- The stakeholders were also asked research, two thirds of the emissions and tiveness and long-term profitability. By their views on the concept of quality. energy consumption that are generated keeping its finances on a sound footing, It was understood to encompass all during the lifecycle of consumer textiles Marimekko is able to provide steady aspects of responsibility, including are produced during the use of a product returns to its shareholders and fulfil its ecological and ethical acceptability, – mainly during maintenance and clean- obligations as a responsible company sustainability, economy, and transpar- ing. Consumers thus play an important and employer. ency. Loyal customers in particular role in ensuring the ecological sustain- Marimekko’s operations generate emphasised product safety as well as ability of products. economic wellbeing for many stake- knowledge of the product’s origin and Marimekko continuously develops holder groups in Finland as well as in the whole value chain. These factors its corporate responsibility reporting. At other countries. The company’s opera- were believed to increasingly impact the moment, the company does not con- tions also have an indirect employment purchase decisions. Marimekko was sider it relevant to have its responsibility impact. 2011 Stakeholder groups 31

Key figures, financial responsibility 2011 2010 2009 Net sales, EUR 1,000 77,442 73,297 72,473 Profit before taxes, EUR 1,000 3,715 8,223 6,354 Dividends paid, EUR 1,000 4,422 4,422 3,618 Gross investments, EUR 1,000 9,220 1,519 1,202 Equity ratio, % 67.2 78.8 77.7 Salaries, wages and bonuses paid, EUR 1,000 16,413 14,126 15,026 Payroll taxes and social security contributions, 7,354 7,159 6,823 EUR 1,000 Income taxes, EUR 1,000 889 2,151 1,653 Purchases from suppliers, EUR 1,000 49,908 43,759 40,795

RESPONSIBILITY AT MARIMEKKO IN THE FUTURE: STAKEHOLDER EXPECTATIONS AND THEIR IMPORTANCE

Marimekko products are non-toxic and safe for children.

100% Marimekko’s design and production Something else. processes can be traced. 80%

60% Marimekko participates in Marimekko has an active role 40% charity work. in Finnish society. 20%

0% Marimekko does not pollute We can trust that Marimekko the environment. always uses materials that are considered the best for humans and the environment.

We can trust that Marimekko does not waste natural resources. Marimekko is a responsible and supportive employer. Marimekko takes environmental considerations into account in all its activities.

All Loyal customers Personnel

Source: Survey by Kausaali Oy in 2011. 32 MARIMEKKO VILLAGE YEARBOOK

What is Marimekko Village?

In 1962 Armi Ratia, the founder Now, 50 years later, Marimekko of Marimekko, defined Marimekko as brings to life the Marimekko Village of “a cultural phenomenon guiding the today. It focuses on emotional quality quality of living”. She spent time in the of life as a key theme. The Village is social circles associated with Aarno realised on many levels in Marimekko Ruusuvuori’s architecture firm and spaces, numerous events as well as in a was inspired by Marshall McLuhan’s virtual space that can be found at idea of the “global village”. From there www.marimekko.com/marimekkovillage. she started building a utopia called It brings together people and doing, Marikylä (“Mari Village”), whose aim thinking and aesthetics. was no less than to house the staffs and to function as a laboratory for product design and to develop new ways of life.

www.facebook.com/ marimekkoglobal - www.twitter.com/ marimekkousa - www.youtube.com/ marimekkovideo - www.weibo.com/marimekkoofficial www.marimekko.com