Tulikivi Corporation will arrange a briefing for analysts and press regarding its financial statements for 2010 and its long-term plans, on Thursday 17 February, 2011 at 11.00 a.m. at the Ravintola Sipuli restaurant at the address Kanavaranta 7, Helsinki.
Participants will be able to take a look at Tulikivi’s new sauna heaters before the start of the event.
Due to the arrangements at the premises, we would request that you register in advance by 4.00 p.m. on 14 February, 2011 at kaisa.toivanen@tulikivi.fi or by telephone, +358 (0)207 636 251.
See you there!
TULIKIVI CORPORATION Heikki Vauhkonen Managing Director
– Tulikivi Corporation, FIN-83900 Juuka, Finland, tel. +358 (0)207 636 000, www.tulikivi.com – Managing Director Heikki Vauhkonen
NASDAQ OMX Helsinki Ltd, main media
Tulikivi comprises the Tulikivi Corporation, which is a listed family enterprise, and its subsidiaries. Tulikivi is the world’s largest manufacturer of heat-retaining fireplaces. Tulikivi has four product groups: Fireplaces, Saunas, Interior & Design and Utility Ceramics. Tulikivi and its customers value wellbeing, interior design and the benefits of bioenergy. Tulikivi’s net sales are slightly under EUR 60 million, of which exports account for about half. Tulikivi employs approximately 500 people.
Tulikivi Corporation’s Corporate Governance Statement for 2010 is enclosed and it can be viewed on the company’s website, at www.tulikivi.com > Investors > Corporate Governance and Management.
TULIKIVI CORPORATION
Heikki Vauhkonen Managing Director
– Tulikivi Corporation, FI-83900 Juuka, Finland, tel. +358 207 636 000, www.tulikivi.com – Managing Director Heikki Vauhkonen
Corporate Governance Statement 2011
NASDAQ OMX Helsinki Ltd, Central Media
Tulikivi Corporation is a stock-exchange listed family business and the world’s largest producer of heat-retaining fireplaces. The Group is known for its Tulikivi soapstone fireplaces and natural stone products, and the Kermansavi fireplaces and utility ceramics. The Group is also expanding its sauna business by launching a wide selection of electric and wood-fired sauna heaters. The Group’s net sales are approximately EUR 56 million, of which exports account for about half. The Group has six production plants and employs about 500 people. www.tulikivi.com
- The Tulikivi Group’s fourth-quarter net sales were EUR 16.6 million (EUR 15.6 million, 10-12/2009), the operating profit was EUR 0.8 (0.3) million and the result before taxes was EUR 0.7 (0.2) million. - In 2010, the net sales of the Tulikivi Group amounted to EUR 55.9 million (EUR 53.1 million in 2009), the operating result was EUR -0.3 (-2.4) million and the result before taxes EUR -1.0 (-3.3) million. Earnings per share amounted to EUR -0.02 (-0.06). - Year-end order books were at EUR 6.3 (4.8) million. - Cash flow from operating activities before investments was EUR 2.9 (3.7) million. - Future outlook: With growing sales and improved cost efficiency, the consolidated net sales are expected to be up from the previous year and the operating result is expected to improve significantly in 2011. - The Board will propose to the Annual General Meeting that a dividend of EUR 0.0250 per share on Series A shares and EUR 0.0233 per share on Series K shares will be paid.
New procedure for publishing releases From now on Tulikivi Corporation will publish its financial statement releases and interim reports as stock exchange releases with contain the information included in the releases and reports that is likely to have a material impact on the value of the share. The full-length financial statement release which contains a descriptive section and tables section will be attached to the stock exchange release. It will be available on the company´s website at www.tulikivi.com. The new procedure is based on the amendment to the Financial Supervisory Authority´s standard 5.2b.
Key financial ratios
Managing Director Heikki Vauhkonen “In 2010 Tulikivi operated in a divided business environment. While demand increased in Finland and the surrounding areas, the situation was more challenging in the traditional export market in Central Europe. During the year, demand for products with a lower profit margin was higher than expected. The results for the last three quarters were in the black but not sufficient enough to turn the loss of the first quarter into profit.
However, Tulikivi strengthened its foothold in the domestic fireplace market. Distribution efficiency has been increased, and the new Green products have been well received. Owing to an increase in new construction and a rise in the consumer energy price, the outlook on demand is good for the new year. Moreover, several new Tulikivi Service Points have been established, and a distribution agreement on fireplace products was made with the S Group. New points of sales will be an excellent addition to Tulikivi’s existing distribution network.
Demand in Central Europe was clearly lower than expected in 2010. Consumer uncertainty reduced the number of investment decisions. Despite the positive development in sales in the surrounding areas, total fireplace exports remained below the level of 2009. The outlook on export demand for 2011 is better than a year ago, thanks to consumers’ improved investment appetite and an increase in housing construction. We have been able to expand our distribution network, and the new design fireplaces have been well received in the market. The export of ceramic fireplaces is anticipated to grow in the Baltic countries and Russia.
The demand for lining stone products rose significantly last year. This was supported by the good situation in the fireplace markets in Sweden and Norway and the increase in the popularity of soapstone-lined fireplaces in the Central European markets and the improved market position of Tulikivi as a supplier of lining stone products. The outlook on demand for the next few months is also good.
The result for natural stone products was decreased by weak demand for building stones and deliveries being postponed until 2011.
In the autumn, the sauna business focused on the development of new products. Sales of the first new Tulikivi sauna heaters will be launched during the first quarter of 2011.
The measures of the centralisation and profitability programme that was started in 2009 were completed during 2010. Similar measures to boost cost efficiency will also be explored in future. The goal of the ERP project started at the turn of the year is to streamline and intensify Tulikivi’s business processes in order to achieve substantial savings while increasing net sales. A new system provided by IFS Oy is well-suited for a networked business model and will replace the two systems currently used.
As a whole, the outlook on demand in all business areas is more positive than before. The increase in net sales will further enhance Tulikivi's profitability.”
Net sales and result The 2010 net sales of the Tulikivi Group totalled EUR 55.9 million (EUR 53.1 million in 2009). The net sales of the Fireplaces Segment amounted to EUR 50.8 (47.8) million, and those of the Natural Stone Segment were EUR 5.1 (5.3) million.
Net sales in Finland totalled EUR 29.2 (25.9) million or 52.3 (48.9) per cent. Exports accounted for EUR 26.7 (27.2.) million of the net sales. The principal export countries were France, Sweden and Germany. The export of lining stones increased, but Fireplace exports did not perform as anticipated. The consolidated operating result was EUR -0.3 (-2.4) million. The Fireplaces Segment’s operating profit was EUR 2.2 (-0.2) million, while the operating result for the Natural Stone Products Segment was a loss of EUR -0.5 (-0.3) million, and the expenses under “Other items´” were EUR -2.0 (-1.9) million. The profit target of Fireplaces Segment was not reached as demand focused on products with a lower profit margin. During the fourth-quarter non-recurring expenses of EUR 0.1 million had a negative effect on profit resulting from the dismantling of the production machinery at Kuhmo. The programme of profitability and centralisation measures launched in 2009 was completed during the first half of 2010. Most of the targets set for the programme, such as relative cost savings, were achieved. The result for natural stone products was decreased by weak demand for building stones and deliveries being postponed until 2011. The consolidated result before taxes was EUR -1.0 (-3.3) million and comprehensive income was EUR -0.7 (-2.4) million. The consolidated return on investment was -0.1 (-4.3) per cent. Earnings per share amounted to EUR -0.02 (-0.06).
Tulikivi Group´s fourth-quarter net sales were EUR 16,6 million (EUR 15,6 million in 10-12/2009), the operating profit was EUR 0,8 (0,3) million and the profit before taxes EUR 0,7 (0,2) million.
Financing and investments Cash flow from operating activities before investments was EUR 2.9 (3.7) million. Working capital increased by EUR 0.9 million in the period and came to EUR 7.2 (6.3) million. Interest-bearing debt was EUR 25.3 (24.7) million and net financial expenses were EUR 0.7 (0.9) million.
The Group´s investments in production, quarrying and development came to total of EUR 3.4 (2.1) million. Major investments made during the year comprised the conversion and replacement investments made in fireplace production, development projects and the opening of new quarries and quarrying sites.
Personnel The Group employed an average of 404 (417) people during the financial year and 497 (484) at the end of the year. Of these employees, 426 (406) were employed by the Fireplaces Segment, 48 (52) by the Natural Stone Products Segment and 23 (26) in activities not allocated to a segment. In all, 96.4 per cent of the employment relationships were permanent and 3.6 per cent were temporary. Salaries and bonuses during the review period totalled EUR 15.7 (15.9) million.
Near-term risks .
The Group’s near-term risks are unexpected negative fluctuations in certain market areas. The renewal of the enterprise resource planning system is being launched. A schedule and cost risk is often associated with such projects.
Future outlook In Finland, the demand outlook for fireplace products are good as a result of increasing new construction and rising consumer energy prices. In exports, the revival in new construction and increasing consumer confidence will increase the demand for fireplaces during the financial year. The demand for lining stone products will remain good.
New and innovative solutions in sauna and fireplace products and expanding distribution network will all increase net sales.
With growing sales and improved cost efficiency, the consolidated net sales are expected to be up from the previous year and the operating result is expected to improve significantly in 2011.
Order books at the end of the year amounted to EUR 6.3 (4.8) million.
The Board’s proposal for the distribution of profits The parent company’s distributable equity amounts to EUR 10 116 thousand made up of EUR 7334 thousand in the reserve for invested unrestricted equity and EUR 2 782 thousand of equity distributable as dividends. The results for the year made up EUR -1010 thousand of the distributable equity. The Board will propose to the Annual General Meeting that the distributable equity be used as follows: - Dividend distribution EUR 0.0250/share for Series A shares EUR 0.0233/share for Series K shares in total approximately EUR 909 thousand. - EUR 9207 thousand will be retained in equity.
It is the Board's opinion that the proposed distribution of profits will not endanger the company's solvency.
Board of Directors Matti Virtaala Chairman of the Board
Distribution: NASDAQ OMX Helsinki Ltd Central Media www.tulikivi.com
Additional information: Tulikivi Corporation, 83900 Juuka, tel. +358-207-636 000, www.tulikivi.com - Chairman of the Board of Directors Matti Virtaala - Managing Director Heikki Vauhkonen
Enclosure: Tulikivi Corportion´s Financial Statement Release Jan-Dec 2010
An annual Summary of Tulikivi Corporation´s stock exchange releases 2010 is available on company´s web-site at the address www.tulikivi.com/news/Annual_summary_2010.
Some of the information included in the releases and announcements might be out of date.
Tulikivi Corporation, 83900 Juuka, tel. +358 207 636 000, www.tulikivi.com – Financing Director Arja Lehikoinen
Tulikivi Corporation, known for its heat-retaining fireplaces and interior design stone products, is expanding its saunas business by launching a new and innovative range of sauna stoves.
At the end of the year, Tulikivi will launch a sauna stove collection based on new innovations and 21st-century design. The collection consists of both electric and wood-fired sauna stoves, and the design and technical solutions are based on a novel use of soapstone and ceramic material in sauna stoves.
The comprehensive range of high-quality electric and wood-fired sauna stoves will fit well in Tulikivi’s product selection alongside its fireplaces and interior design stone products, both on the Finnish market and in export markets. The most interesting export markets will be Russia, the Baltic countries and Scandinavia. In Finland, sales and customer service can make efficient use of Tulikivi’s own distribution network. The company has 35 Tulikivi Showrooms and 70 Tulikivi Service Points in Finland.
Tulikivi has appointed Christian Kraft, an engineer by training, as director of its Saunas Business. He has more than ten years’ experience heading sales and marketing in the sauna business.
It is estimated that 150 000 sauna stoves are sold in Finland each year. Half of these are wood-fired and half are electric stoves.
By focusing strongly on new customer segments and product groups, Tulikivi aims to expand its net sales. The company is looking to achieve organic growth of more than ten per cent annually.
NASDAQ OMX Helsinki Ltd Main media www.tulikivi.com
Tulikivi Corporation, 83900 Juuka, www.tulikivi.com Matti Virtaala, Chairman of the Board of Directors, +358 207 636 666 Heikki Vauhkonen, Managing Director, +358 207 636 555
Tulikivi Corporation is a stock-exchange listed family business and the world’s largest producer of heat-retaining fireplaces. The Group is known for its Tulikivi soapstone fireplaces and natural stone products, and the Kermansavi fireplaces and utility ceramics. The Group’s net sales are approximately EUR 53 million, of which exports account for about half. The Group has six production plants and employs about 500 people. http://www.tulikivi.com
- Tulikivi Group’s third-quarter net sales were EUR 13.9 million (Q3/2009: EUR 13.5 million), the operating profit was EUR 0.2 (0.6) million and the profit before taxes was EUR 0.1 (0.4) million. - The Group’s net sales for January-September were EUR 39.3 million (Jan-Sep/2009: EUR 37.5 million), the operating result was EUR -1.1 (-2.7) million and the result before taxes was EUR -1.6 (- 3.5) million. - Earnings per share amounted to EUR -0.03 (-0.08) in January- September and EUR 0.00 (0.01) in the third quarter. - Cash flow from operating activities was EUR -1.0 (-0.6) million. - Order books at the end of September stood at EUR 7.8 (6.0) million. -The Group’s fourth-quarter net sales are expected to be up and profitability to improve, but the 2010 result before taxes may remain slightly in the red.
Managing Director’s comments:
“In the third quarter, domestic sales of fireplaces performed very well. The situation in the market was good and our new products have been well received, and in the early autumn we also focused on promoting these products. Thanks to the various measures taken, the market share of Tulikivi products in Finland increased in the early part of the year.
“Lining stone sales were also good in the early autumn, and order books are strong to the end of the year.
“Fireplace exports in the January-September period were lower than expected, and the market environment in Central Europe is still challenging.
Third-quarter profitability was adversely affected by the early- season marketing measures of the new products and by the less favourable composition of sales in relation to a year earlier. The strong order books will enable an improvement in net sales and profitability in the final part of the year.”
Segment reporting
The Group’s operating segments are the Fireplaces Business and the Natural Stone Products Business. The Fireplaces Business includes soapstone and ceramic fireplaces sold under the Tulikivi and Kermansavi brands and their accessories, and utility ceramics and fireplace lining stones. The Natural Stone Products Business includes interior decoration stone products for households and stone deliveries to construction sites. Expenses not allocated to segments are included under ‘Other items’, which also includes financial expenses and taxes. Expenses not allocated to segments include expenses of the Group administration and expenses pertaining to financial administration. The segment reporting has been adjusted by allocating to the operating segments the data and personnel administration expenses previously included under expenses not allocated to segments. The comparison figures have been changed accordingly.
Net sales and result
The Group’s net sales for January-September were EUR 39.3 million (Jan-Sep/2009: EUR 37.5 million). The net sales of the Fireplaces Business were EUR 35.3 (33.4) million and of the Natural Stone Products Business EUR 4.0 (4.1) million.
Net sales in Finland accounted for EUR 20.8 (18.6) million, or 53.0 (49.6) per cent, of total net sales. Exports amounted to EUR 18.5 (18.9) million in net sales. The principal export countries were France, Sweden and Germany. Fireplace exports did not perform as well as expected due to the lower level of demand.
The Group’s consolidated operating result was EUR -1.1 (-2.7) million. The consolidated operating result for the Fireplaces Business was EUR 0.6 (-1.2) million and for the Natural Stone Products Business EUR -0.3 (-0.1) million. The expenses under ‘Other items’ came to EUR -1.4 (-1.4) million. The result for the Fireplaces Business was adversely affected by the marketing measures undertaken during the third quarter and by the focus of demand on lower margin products. The consolidated result before taxes was EUR -1.6 (-3.5) million, and the net result for the period was EUR -1.2 (-2.8) million. Earnings per share amounted to EUR -0.03 (-0.08).
The Group’s third-quarter net sales were EUR 13.9 (EUR 13.5) million, consolidated operating profit EUR 0.2 (0.6) million and profit before taxes EUR 0.1 (0.4) million. Earnings per share amounted to EUR 0.00 (0.01).
Financing and investments
Cash flow from operating activities before investments was EUR - 1.0 (-0.6) million. Working capital increased by EUR 3.1 (1.0) million in January-September and came to EUR 9.5 million (EUR 9.1 million on 30 September 2009). Interest-bearing debt was EUR 25.8 (22.7) million and consolidated net financial expenses were EUR 0.6 (0.8) million. The equity ratio was 36.9 (40.8) per cent. The ratio of interest-bearing net debt to equity, or gearing, was 82.9 (77.4) per cent. The current ratio was 1.8 (1.7). Equity per share was EUR 0.59 (0.63).
The Group has a solid financial position. At the end of September the Group’s cash assets were EUR 7.8 (4.7) million and unused credit limits amounted to EUR 4.0 (9.0) million. A total of EUR 12.5 (15.6) million of the Group’s liability financing is under covenants connected with the Group’s solvency and profitability.
The Group’s investments in production, quarrying and development were EUR 2.0 (1.5) million in January-September. Research and development costs were EUR 1.4 (1.0) million, i.e. 3.4 (2.6) per cent of net sales. EUR 0.3 (0.2) million of this was capitalised in the balance sheet.
Product development focused on productisation of the Tulikivi Green products and an interior design fireplace collection and other new products. These products will complement and expand the uses of fireplaces in household heating. Other major development projects include development of the Group’s processes and renewal of the enterprise resource planning system.
Personnel
The Group employed an average of 389 (419) people during the report period. Salaries and bonuses totalled EUR 11.2 (11.6) million.
The Tulikivi Group has an incentive plan that includes a share- based incentive plan for the Managing Director and key personnel and an incentive pay scheme for all personnel. The share-based plan, introduced in 2008, comprises three earning periods, which are the calendar years 2008, 2009 and 2010. The bonus is determined on the basis of the Group’s result after financial items and the cash flow from operating activities after investments. A maximum total of about 360 000 Series A shares and a cash payment corresponding to the value of the shares can be paid as rewards on the basis of the entire share-based incentive plan. The maximum share reward for 2010 is 218 750 Series A shares and a cash payment corresponding to the value of the shares. The Managing Director’s proportion of this share reward is a maximum of 50 000 shares. The incentive pay scheme is based on the Group’s result and on the improvement in productivity, and the Managing Director and key personnel also have personal targets in addition to this.
Decisions of the Annual General Meeting
Tulikivi Corporation’s Annual General Meeting, held on 14 April 2010, resolved to pay a dividend of EUR 0.0250 on Series A shares and EUR 0.0233 on Series K shares. The dividend payout date was 26 April 2010. The other decisions of the general meeting are presented in the separate release published on the date of the meeting.
Transfer of the funds of the share premium account to the reserve for invested unrestricted equity
As decided by the Annual General Meeting held on 14 April 2010, the share premium account, which is part of the equity, has been reduced by transferring all the funds in the share premium account on the balance sheet as of 31 December 2009, i.e. EUR 7 334 116.06 in total, to the reserve for invested unrestricted equity.
The National Board of Patents and Registration of Finland issued a public notice on 6 May 2010 regarding the transfer of the funds in the share premium account to the reserve for invested unrestricted equity. By the due date for creditors, which was 19 August 2010, none of the creditors had opposed the reduction of the share premium account.
Treasury shares
The company did not purchase or assign any of its own shares during the report period. At the end of the period, the total number of Tulikivi shares held by company was 124 200 Series A shares, which corresponds to 0.3 per cent of the company’s share capital and 0.1 per cent of all voting rights.
Risks and uncertainties
The Group’s near-term risks are mainly associated with the increased uncertainty among consumers and the effect of this on consumers’ building and fireplace projects.
The risks and the means of preventing and controlling them are presented in more detail in section 38 of the notes to the financial statements in the 2009 Annual Report.
Future outlook
The growth in private house building in Finland means that the demand for Tulikivi products will continue to be strong. The demand for lining stone products will also continue to be good. In Central Europe the overall demand for fireplaces has fallen below earlier levels. Growth in net sales will be aided by the Tulikivi Green products and the new interior design fireplaces launched during the report period.
The Group’s fourth-quarter net sales are expected to be up and profitability to improve. However, as a result of export demand focusing on products with a lower profit margin, the 2010 result before taxes may remain slightly in the red.
The order books at the end of the report period amounted to EUR 7.8 million (EUR 6.0 million on 30 September 2009 and EUR 4.8 million on 31 December 2009).
Strategy
The revised strategy put in place in the Group at the beginning of the report period covers all key operating and financial targets to the end of 2015. Under the strategy, the company’s organic growth target for the next few years is an annual growth of over 10 per cent. The target for profit before taxes is to reach 10 per cent of net sales over the next five years. The target for return on equity is to exceed 20 per cent. Corporate acquisitions in support of the strategy are also possible.
INTERIM REPORT January – September 2010, SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME MEUR 1-9/ 1-9/ Change, 1-12/ 7-9/ 7-9/ Change 2010 2009 % 2009 2010 2009 %
Sales 39.3 37.5 4.7 53.1 13.9 13.5 2.8 Other operating income 0.4 0.5 0.6 0.2 0.1 Increase/decrease in inventories in finished goods and in work in progress 0.2 -1.0 -1.0 -1.0 -0.4 Production for own use 0.3 0.2 0.3 0.1 0.0 Raw materials and consumables 8.0 7.1 10.2 2.3 2.4 External services 6.3 5.3 7.6 2.3 1.9 Personnel expenses 14.0 14.7 20.0 4.3 4.2 Depreciation 3.5 4.2 5.5 1.2 1.3 Other operating expenses 9.4 8.6 12.1 2.9 2.8
Operating profit/ loss -1.1 -2.7 61.1 -2.4 0.2 0.6 -66.8 Percentage of sales -2.7 -7.3 -4.5 1.5 4.7 Finance income 0.2 0.1 0.2 0.0 0.0 Finance expense -0.8 -0.9 -1.1 -0.2 -0.3 Share of the profit of associated company 0.0 0.0 0.0 0.0 0.0
Profit before tax -1.6 -3.5 53.5 -3.3 0.1 0.4 -80.0 Percentage of sales -4.2 -9.4 -6.2 0.6 2.9 Change in deferred tax 0.4 0.7 1.0 0.0 -0.1
Profit/loss for the period -1.2 -2.8 56.1 -2.4 0.1 0.3 -65.1
Other comprehensive income Interest rate swaps 0.0 0.0 0.0 0.0 0.0 Translation differences 0.0 0.0 0.0 0.0 0.0
Total comprehensive income for the period -1.2 -2.9 58.3 -2.4 0.1 0.2 -66.1
Earnings per share attributable to the equity holders of the parent company, EUR basic and diluted -0.03 -0.08 56.6 -0.06 0.00 0.01 -75.0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION MEUR 09/2010 09/2009 12/2009 ASSETS Non-current assets Property, plant and equipment Land 1.0 1.0 1.0 Buildings 7.1 7.6 7.4 Machinery and equipment 6.9 8.8 8.1 Other tangible assets 1.0 1.1 1.1 Intangible assets Goodwill 4.2 4.2 4.2 Other intangible assets 10.6 10.5 10.6 Investment properties 0.2 0.2 0.2 Available-for-sale investments 0.1 0.1 0.1 Receivables Deferred tax assets 1.8 1.5 1.6 Total non-current assets 32.9 35.0 34.3
Current assets Inventories 10.6 10.4 10.2 Trade receivables 6.5 6.1 4.1 Current income tax receivables 0.1 0.1 0.3 Other receivables 0.9 0.9 0.9 Cash and cash equivalents 7.8 4.7 10.6 Total current assets 25.9 22.2 26.1 Total assets 58.8 57.2 60.4
EQUITY AND LIABILITIES Equity Share capital 6.3 6.3 6.3 Share premium fund - 7.4 7.4 Treasury shares -0.1 -0.1 -0.1 Translation difference 0.0 -0.1 -0.1 Revaluation reserve -0.1 -0.1 -0.1 Invested unrestricted equity 7.4 Retained earnings 8.2 9.9 10.4 Total equity 21.7 23.3 23.8 Non-current liabilities Deferred income tax liabilities 1.7 1.9 1.9 Provisions 1.0 0.9 1.0 Interest-bearing debt 20.1 18.0 19.9 Other debt 0.1 0.1 Total non-current liabilities 22.9 20.8 22.9 Current liabilities Trade and other payables 8.4 8.1 8.7 Current income tax liabilities 0.0 0.0 Current provisions 0.2 0.3 0.2 Short-term interest-bearing debt 5.6 4.7 4.8 Total current liabilities 14.2 13.1 13.7 Total liabilities 37.1 33.9 36.6 Total equity and liabilities 58.8 57.2 60.4
CONSOLIDATED STATEMENT OF CASH FLOWS 01-09/ 01-09/ 01-12/ MEUR 2010 2009 2009
Cash flows from operating activities Profit/loss for the period -1.2 -2.8 -2.4 Adjustments: Non-cash transactions 3.5 4.1 5.5 Interest expenses and interest income and taxes 0.2 0.1 0.0 Change in working capital -3.1 -1.0 1.8 Interest paid and received and taxes paid -0.4 -1.0 -1.2 Net cash flow from operating activities -1.0 -0.6 3.7
Cash flows from investing activities Investment in property, plant and equipment and intangible assets -2.0 -1.5 -2.0 Grants received for investments and sales of property, plant and equipment 0.1 0.2 0.2 Net cash flow from investing activities -1.9 -1.3 -1.8
Cash flows from financing activities Proceeds from non-current and current borrowings 5.0 5.1 Repayment of non-current and current borrowings -4.0 -4.0 -7.0 Dividends paid and treasury shares -0.9 -1.1 -1.1 Net cash flow from financing activities 0.1 -5.1 -3.0
Change in cash and cash equivalents -2.8 -7.0 -1.1
Cash and cash equivalents at beginning of period 10.6 11.7 11.7 Cash and cash equivalents at end of period 7.8 4.7 10.6
STATEMENT OF CHANGES IN EQUITY MEUR Share Share Trans- SWOP Re- Trea- Re- Total capital pre- lation valua- sury tained mium- diff. tion share earn- fund re- ings Equity serve
Jan. 1, 2010 6.3 7.4 -0.1 - -0.1 -0.1 10.4 23.8 Dividends paid and treasury shares -0.9 -0.9 Total comprehensive income for the period 0.1 -1.2 -1.1 Fund transaction -7.4 7.4 0.0 Equity Sept. 30, 2010 6.3 0.0 0.0 7.4 -0.1 -0.1 8.2 21.7
Equity Jan. 1, 2009 6.3 7.4 0.0 -0.1 -0.1 13.7 27.2 Dividends paid and treasury shares -1.0 -1.0 Total comprehensive income for the period -0.1 -2.8 -2.9 Equity Sept 30, 2009 6.3 7.4 -0.1 - -0.1 -0.1 9.9 23.3
SEGMENT REPORTING 1-9/ 1-9/ 1-12 / MEUR 2010 2009 2009 Operating segments Sales 39.3 37.5 53.1 Fireplaces 35.3 33.4 47.8 Natural Stone Products 4.0 4.1 5.3
Operating profit/loss -1.1 -2.7 -2.4 Fireplaces 0.6 -1.2 -0.2 Natural Stone Products -0.3 -0.1 -0.3 Other items -1.4 -1.4 -1.9
OPERATING SEGMENTS QUARTERLY Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ 2010 2010 2010 2009 2009 2009 2009 Operating segments Sales 13.9 14.7 10.7 15.6 13.5 13.0 11.0 Fireplaces 12.8 13.0 9.5 14.4 12.4 11.4 9.6 Natural Stone Products 1.1 1.7 1.2 1.2 1.1 1.6 1.4
Operating profit/loss 0.2 0.4 -1.7 0.3 0.6 -0.6 -2.7 Fireplaces 0.9 0.8 -1.1 1.0 1.2 -0.2 -2.2 Natural Stone Products -0.2 0.1 -0.2 -0.2 0.0 0.0 -0.1 Other items -0.5 -0.5 -0.4 -0.5 -0.6 -0.4 -0.4
ASSETS AND LIABILITIES BY SEGMENT ON SEPT. 30, 2010 Fire- Natural Other Total places Stone items Products Assets by segment 46.9 4.1 7.8 58.8 Liabilities by Segment 8.2 0.7 28.2 37.1 Investments 1.5 0.0 0.4 1.9 Depreciation and amortisation expenses 3.1 0.2 0.2 3.5
KEY FINANCIAL RATIOS AND SHARE RATIOS 1-9/10 1-9/09 7-9/10 7-9/09 1-12/09
Earnings per share, EUR -0.03 -0.08 0.00 0.01 -0.06 Equity per share, EUR 0.59 0.63 0.59 0.63 0.64 Return on equity, % -7.2 -14.8 0.4 4.5 -9.2 Return on investments, % -2.5 -6.9 0.5 5.6 -4.3 Equity ratio, % 36.9 40.8 39.4 Net indebtness ratio, % 82.9 77.4 59.4 Current ratio 1.8 1.7 1.9 Gross investments, MEUR 2.0 1.5 2.1 Gross investments, % of sales 5.0 4.0 4.0 Research and development costs, MEUR 1.4 1.0 1.6 %/sales 3.4 2.6 3.1 Outstanding orders (30 Sept), MEUR 7.8 6.1 4.8 Average number of staff 389 419 417
Rate development of shares, EUR Lowest share price, EUR 1.07 0.67 0.67 Highest share price, EUR 1.79 1.30 1.30 Average share price, EUR 1.38 0.94 0.96 Closing price, EUR 1.29 1.00 1.06
Market capitalization at the end of period, 1000 EUR 47 755.5 37 019.8 39 241.0 (Supposing that the market price of the K-share is the same as that of the A-share) Number of shares traded, (1000 pcs) 3 037.0 3 030.7 3 959.0 % of total amount of A-shares 11.1 11.0 14.4 Number of shares average 37019770 37025021 37019770 37019770 37023708 Number of shares 30 Sept. 37019770 37019770 37019770 37019770 37019970
NOTES TO THE CONSOLIDATED FINANCIALS STATEMENTS This financial statement release has been prepared in accordance with the IAS 34 Interim Financial Reporting standard.
In preparing of this interim report, Tulikivi has applied same accounting policies as in the 2009 financial statements, with the exception of the following new/amended standards that the group has adopted as from January 1, 2010:
- Revised IFRS 3 Business combinations (effective as of 1 July 2009). The revised standard includes several significant changes. - Amendments to IAS 27 Consolidated and separate financial statements (effective as of 1 July 2009). The amended standard affects accounting for step acquisitions and divestments. - Amendment to IAS 39 Financial Instruments: Recognition and Measurement - Eligible hedged items (effective as of 1 July 2009) - IFRIC 17 Distributions of Non-cash Assets to Owners (effective as of 1 July 2009) - IFRIC 18 Transfers of assets from customers (effective as of 1 July 2009) - Improvements to IFRSs (April 2009, mainly effective as of 1 January 2010). - Amendments to IFRS 2 Share-based Payment – Intra-group cash- settled share-based payment transaction (effective as of 1 January 2010).
The Group’s view is that the adoption of the standards and interpretations mentioned above will not have any significant effect on the financial statements of 2010 reporting period. The adaptation of the revised IFRS 3 would affect the financial statements of Tulikivi Group in 2010, should a transaction during the financial period meet the definition of a business combination.
The key performance ratios and share ratios are calculated using the same methods as for the consolidated financial statements for 2009. The calculations rules can be found in the 2009 annual report, page 76.
Income taxes EUR million 01-09/10 01-09/09 01-12/09 Taxes for the current and previous reporting periods 0.0 -0.1 0.1 Deferred taxes 0.4 0.8 0.9 Total 0.4 0.7 1.0
Collaterals given EUR million 9/10 9/09 12/09 Loans from credit institutions and other long term debts and loan guarantees, with related mortgages and pledges 24.2 18.4 21.9 Mortgages granted and collaterals pledged 29.7 28.6 28.2 Other given guarantees and pledges on behalf of own liabilities 0.7 0.5 0.8 Derivatives Interest rate swaps Nominal value 6.5 8.2 7.3 Fair value -0.2 -0.3 -0.3 Foreign exchange forward contracts Nominal value 0.1 - 0.1 Fair value - - The fair value of derivatives is the gain or loss for closing the contract based on market rates at the balance sheet date.
Changes in tangible assets are classified as follows: 1-9/10 1-9/09 1-12/09 Acquisition costs 1.0 0.9 1.1 Proceeds from sale -0.0 0.0 -0.1 Total 1.0 0.9 1.0
Provisions The Group’s non-current provisions are an environmental provision of EUR 0.6 million and a warranty provision of EUR 0.4 million. Current provisions include the latter part of in 2009 recognized restructuring provision of EUR 0.2 million.
Non-current provisions are itemized in greater detail in notes 26. Provisions and 34. Contingent liabilities in the consolidated financial statements in Annual Report 2009. Contingent liabilities have not changed after the end of the financial period.
Share capital Share capital by share series
Number of % of % of Share, shares shares voting EUR of rights share capital K shares (10 votes) 9 540 000 25.7 77.6 1 621 800 A shares (1 vote) 27 603 970 74.3 22.4 4 692 675 Total Sept 30, 2010 37 143 970 100.0 100.0 6 314 475
There have been no changes in Tulikivi Corporation´s share capital during the period. According to the articles of association the dividend paid for Series A shares shall be 0.0017 EUR higher than the dividend paid on Series K shares. The Series A share is listed on the NASDAQ OMX Helsinki Ltd. No flagging notifications were made to the company during the review period.
Board authorizations The Annual General Meeting of April 14, 2010 authorized the Board of Directors to acquire the company’s own shares. A maximum of 2 760 397 Series A shares in the company and 954 000 Series K shares in the company can be bought back. The authorization is valid until the Annual General Meeting 2011.
The Board of Directors has further an authorization to decide on share issues and the conveyance of the company’s own shares in the possession of the company. New shares can be issued or own shares held by the company conveyed amounting to a maximum of 5 520 794 Series A shares and 1 908 000 Series K shares. The authorization is valid until the Annual General Meeting 2011.
The number of the shares in the company´s possession at the end of period was 124 000 series A shares.
Related party transactions The following transactions with related parties took place: EUR 1000 9/10 9/09 12/09 Sales to associated companies 4 7 7 Purchases from associated companies 133 117 148
Sales to related parties 12 24 30
Leases from related parties 83 83 109
Receivables from the related parties 0 12 0
Transactions with other related parties Tulikivi Corporation is a founder member of the Finnish Stone Research Foundation. The company has leased offices and storages from the property owned by the Foundation and North Karelia Educational Federation of Municipalities. The rent paid for these facilities was EUR 99 thousand (98 thousand) in the period. The rent corresponds with the market rents. The service charges from the Foundation were EUR 7 (39) thousand and rent charges on land EUR 2 (2) thousand. Outstanding receivables from the Foundation amounted EUR 0 (12) thousand.
Key management compensation EUR 1000 9/10 9/09 12/09 Salaries and other short-term employee benefits of the Board of Directors and Managing Directors 354 347 479 Other long term employee benefits 66 51 83
Largest shareholders on September 30, 2010 Name of shareholder Shares Pro- portion of total vote
Vauhkonen Reijo 4 186 827 24.3 % Vauhkonen Heikki 3 014 724 24.1 % Elo Eliisa 2 957 020 5.9 % Virtaala Matti 2 429 887 12.6 % Mutual Pension Insurance Ilmarinen 1 902 380 1.5 % Mutanen Susanna 1 643 800 7.2 % Vauhkonen Mikko 782 310 3.5 % Paatero Ilkka 718 430 0.6 % Nuutinen Tarja 674 540 3.5 % Investment Fond Phoebus 585 690 0.5 % Other shareholders 18 248 362 16.3 %
The information in the interim report is unaudited.
The companies included in the Group are the parent company Tulikivi Corporation, Kivia Oy, AWL-Marmori Oy, Tulikivi U.S. Inc. and OOO Tulikivi. Group companies include also The New Alberene Stone Company, Inc., which is dormant. The parent company has a fixed place of business in Germany, Tulikivi Oyj Niederlassung Deutschland. The Group has interests in associated companies Stone Pole Oy, Leppävirran Matkailukeskus Oy and Rakentamisen MALL Oy.
Additional information: Tulikivi Corporation, 83900 Juuka, www.tulikivi.com - Chairman of the Board of Directors Matti Virtaala, +358 207 636 666 - Managing Director Heikki Vauhkonen, +358 207 636 555
The Group’s net sales are improving, cost efficiency is continuing to grow and results turned positive in the second quarter. However, as a result of export demand focusing on products with a lower profit margin, the 2010 result before taxes for may remain slightly in the red. The future outlook previously forecast that the result before taxes for the year would be positive.
Tulikivi will publish its interim report for January-September on Wednesday 20 October, according to the original timetable.
NASDAQ OMX Helsinki Ltd Central Media www.tulikivi.com
Tulikivi Corporation, 83900 Juuka, www.tulikivi.com – Chairman of the Board Matti Virtaala, tel. 0207 636 666 – Managing Director Heikki Vauhkonen, tel. 0207 636 555
Tulikivi Corporation´s Financial Statements Release for 2010 will be published on February 10, 2011. Annual Report will come out on Tulikivi’s website week 11. Annual General meeting will be held on April 14, 2011.
The following interim reports will be published in 2011: – January – March April 21 – January – June August 4 – January – September October 20
- The Tulikivi Group’s second-quarter net sales were EUR 14.7 million (EUR 13.0 million, 4-6/2009), the operating profit was EUR 0.5 (-0.7) million and the result before taxes was EUR 0.2 (-0.9) million. - The Group’s net sales during the report period were EUR 25.4 million (EUR 24.0 million, 1-6/2009), the operating profit was EUR -1.3 (-3.4) million and the result before taxes was EUR -1.7 (- 3.9) million. - Earnings per share amounted to EUR -0.04 (-0.08) in the report period and EUR 0.00 (-0.02) in the second quarter. - Cash flow from operating activities was EUR -2.1 (-1.4) million. - Order books at the end of the period were at EUR 6.7 (6.5) million. - With the company’s recovering sales and improved cost efficiency, the full-year net sales are expected to be up from the previous year and the result for the year is expected to be in the black.
“With new building recovering in the second quarter, demand has improved significantly in Finland and the neighbouring regions. Demand for lining stone products also increased. In Central Europe, consumers’ reluctance to make major investment decisions is having an impact on the sales of fireplaces.
“The Group’s net sales will grow in the autumn as a result of normal seasonal variation and the recovery in the construction sector both in Finland and neighbouring regions, and sales will also be boosted by new products launched during the first half of the year. Furthermore, higher energy taxation in Finland will motivate consumers to invest in saving energy. The company’s centralisation and productivity improvement programme will continue to improve profitability in the latter half of the year.”
The Group’s operating segments are the Fireplaces Business and the Natural Stone Products Business. The Fireplaces Business includes soapstone and ceramic fireplaces sold under the Tulikivi and Kermansavi brands and their accessories, and utility ceramics and fireplace lining stones. The Natural Stone Products Business includes interior decoration stone products for households and stone deliveries to construction sites. Expenses not allocated to a segment are included under ‘Other items’, which also includes financial expenses and taxes. Expenses not allocated to a segment include expenses of the Group administration and expenses pertaining to financial administration. The segment reporting has been adjusted by allocating to the operating segments the data and personnel administration expenses, which were previously included in expenses not allocated to a segment. The comparison data has been changed accordingly.
The Group’s net sales during the report period were EUR 25.4 million (EUR 24.0 million, 1-6/2009). The net sales of the Fireplaces Business were EUR 22.5 (21.0) million and of the Natural Stone Products Business EUR 2.9 (3.0) million.
Net sales in Finland accounted for EUR 13.3 (12.1) million, or 52.2 (50.5) per cent, of total net sales. Exports amounted to EUR 12.1 (11.9) million in net sales. The principal export countries were France, Sweden and Germany. Export growth was held back by the uncertainty affecting consumer decisions in the principal markets.
The Group’s operating profit was EUR -1.3 (-3.4) million. In accordance with the Group’s segment reporting, the operating profit for the Fireplaces Business was EUR -0.3 (-2.4) million and for the Natural Stone Products Business EUR -0.1 (-0.1) million. The expenses under ‘Other items’ were EUR -0.9 (-0.9) million. The consolidated result before taxes was EUR -1.7 (-3.9) million, and the net result was EUR -1.3 (-3.1) million. Earnings per share amounted to EUR -0.04 (-0.08).
The Group’s second-quarter net sales were EUR 14.7 million (EUR 13.0 million, 4-6/2009) and profit before taxes was EUR 0.2 (-0.9) million. Earnings per share amounted to EUR 0.00 (-0.02).
The Group’s programme of profitability and centralisation measures launched in 2009 has been completed and the objectives mainly met.
Cash flow from operating activities before investments was EUR - 2.1 (-1.4) million. Working capital increased by EUR 3.0 million in the period and came to EUR 9.4 million (EUR 8.9 million on 30 June 2009). Interest-bearing debt was EUR 26.7 (23.3) million and consolidated net financial expenses were EUR 0.5 (0.6) million. The equity ratio was 35.8 per cent (39.6 per cent on 30 June 2009). The ratio of interest-bearing net debt to equity, or gearing, was 84.4 (79.3) per cent. The current ratio was 1.8 (1.6). Equity per share was EUR 0.58 (0.62).
The Group has a solid financial position. At the end of the report period, the Group’s cash assets were EUR 8.4 (4.9) million and unused credit limits amounted to EUR 1.0 (4.0) million.
The Group’s investments in production, quarrying and development were EUR 1.2 (0.9) million in the report period. Research and development costs were EUR 0.9 (0.7) million, i.e. 3.6 (2.7) per cent of net sales. EUR 0.2 (0.2) million of this was capitalised in the balance sheet.
Product development focused on productisation of the Tulikivi Green products and an interior design fireplace collection and other new products. These products will complement and expand the uses of fireplaces in household heating. Other large development projects include development of the Group’s processes and up- dating of the enterprise resource planning system.
The Group employed an average of 374 (393) people during the report period. Salaries and bonuses during the report period totalled EUR 7.8 (8.3) million.
The Tulikivi Group has an incentive plan that includes a share- based incentive plan for the Managing Director and key personnel and an incentive pay scheme for all personnel.
The share-based plan, introduced in 2008, comprises three earning periods, which are the calendar years 2008, 2009 and 2010. The bonus is determined on the basis of the Group’s result after financial items and the cash flow from operating activities after investments. A maximum total of about 360 000 Series A shares and a cash payment corresponding to the value of the shares can be paid as rewards on the basis of the entire share-based incentive plan. The maximum share reward for 2010 is 218 750 A shares and a cash payment corresponding to the value of the shares. The Managing Director’s share of the share reward is a maximum of 50 000 shares.
The incentive pay scheme is based on the Group’s result and on the improvement in productivity, and the Managing Director and key personnel also have personal targets in addition to this.
Annual General Meeting
Tulikivi Corporation’s Annual General Meeting, held on 14 April 2010, resolved to pay a dividend of EUR 0.0250 on Series A shares and EUR 0.0233 on Series K shares. The dividend payout date was 26 April 2010. The other decisions of the general meeting can be found in the separate release published in the date of the meeting.
The decision of the Annual General Meeting taken on 14 April 2010 to transfer the funds of the share premium account to the reserve for invested unrestricted equity has been entered in the Trade Register and was announced on 6 May 2010. The due date for debtors is 19 August 2010.
As decided by the Annual General Meeting, the share premium account (part of the equity) on the company’s balance sheet as of 31 December 2009 will be reduced by EUR 7 334 116.06, by transferring all the funds in the share premium account on the balance sheet as of 31 December 2009 to the reserve for invested unrestricted equity.
The increase in private house building in Finland will improve the demand for Tulikivi products. Exports of lining stone products will continue at a good level. In Central Europe the demand for fireplaces varies by country but is expected to remain lower than before as a whole. New products will improve the company’s net sales during the second half of the year.
With the company’s recovering sales and improved cost efficiency, the full-year consolidated net sales are expected to be up from the previous year and the 2010 result before taxes is expected to be positive.
The order books at the end of the report period amounted to EUR 6.7 million (EUR 6.5 million on 30 June 2009 and EUR 4.8 million on 31 December 2009).
The revised strategy put in place in the Group at the beginning of the report period covers all key operating and financial targets to the end of 2015. Under the strategy, the company’s organic growth target is an annual growth of over 10 per cent, and the target for profit before taxes is 10 per cent of net sales over the next five years. The target for return on equity is to exceed 20 per cent. Corporate acquisitions in support of the strategy are also possible.
INTERIM REPORT January – June 2010, SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME MEUR 1-6/ 1-6/ Change, 1-12/ 4-6/ 4-6/ Change 2010 2009 % 2009 2010 2009 %
Sales 25.4 24.0 5.9 53.1 14.7 13.0 13.3 Other operating income 0.3 0.4 0.6 0.2 0.3 Increase/decrease in inventories in finished goods and in work in progress 1.1 -0.6 -1.0 1.1 -0.1 Production for own use 0.1 0.2 0.3 0.0 0.1 Raw materials and consumables 5.6 4.7 10.2 3.4 2.6 External services 4.0 3.4 7.6 2.5 1.9 Personnel expenses 9.7 10.6 20.0 5.3 5.2 Depreciation 2.4 2.8 5.5 1.2 1.6 Other operating expenses 6.5 5.9 12.1 3.1 2.8
Operating profit/ loss -1.3 -3.4 62.2 -2.4 0.5 -0.7 160.7 Percentage of sales -5.0 -14.0 -4.5 3.1 -4.9 Finance income 0.1 0.1 0.2 0.1 0.0 Finance expense -0.6 -0.7 -1.1 -0.3 -0.3 Share of the profit of associated company 0.0 0.0 0.0 0.0 0.0
Profit before tax -1.7 -3.9 56.1 -3.3 0.2 -0.9 122.0 Percentage of sales -6.8 -16.3 -6.2 1.3 -6.8 Direct taxes 0.4 0.9 1.0 0.0 0.2
Profit/loss for the period -1.3 -3.1 56.9 -2.4 0.2 -0.7 135.1
Other comprehensive income Interest rate swaps 0.0 0.0 0.0 0.0 0.0 Translation differences 0.0 0.0 0.0 -0.1 0.0
Total comprehensive income for the period -1.3 -3.1 56.8 -2.4 0.1 -0.7 111.6
Earnings per share attributable to the equity holders of the parent company, EUR basic and diluted -0.04 -0.08 56.8-0.06 0.00 -0.02 121.1
CONSOLIDATED STATEMENT OF FINANCIAL POSITION MEUR 06/2010 06/2009 12/2009 ASSETS Non-current assets Property, plant and equipment Land 1.0 1.0 1.0 Buildings 7.2 7.7 7.4 Machinery and equipment 7.2 9.1 8.1 Other tangible assets 1.0 1.1 1.1 Intangible assets Goodwill 4.2 4.3 4.2 Other intangible assets 10.6 10.7 10.6 Investment properties 0.2 0.2 0.2 Available-for-sale investments 0.1 0.1 0.1 Receivables Deferred tax assets 1.9 1.7 1.6 Total non-current assets 33.4 35.9 34.3
Current assets Inventories 11.1 10.9 10.2 Trade receivables 6.4 5.4 4.1 Current income tax receivables 0.1 0.2 0.3 Other receivables 1.1 1.0 0.9 Cash and cash equivalents 8.4 4.9 10.6 Total current assets 27.1 22.4 26.1 Total assets 60.5 58.3 60.4
EQUITY AND LIABILITIES Equity Share capital 6.3 6.3 6.3 Share premium fund 7.4 7.4 7.4 Treasury shares -0.1 -0.1 -0.1 Translation difference 0.0 0.0 -0.1 Revaluation reserve -0.1 -0.1 -0.1 Retained earnings 8.2 9.6 10.4 Total equity 21.6 23.1 23.8 Non-current liabilities Deferred income tax liabilities 1.8 1.9 1.0 Provisions 1.0 0.9 1.9 Interest-bearing debt 21.1 18.3 19.9 Other debt 0.1 0.1 Total non-current liabilities 24.0 21.1 22.9 Current liabilities Trade and other payables 9.1 8.7 8.7 Current income tax liabilities 0.0 Current provisions 0.2 0.5 0.2 Short-term interest-bearing debt 5.6 4.9 4.8 Total current liabilities 14.9 14.1 13.7 Total liabilities 38.9 35.2 36.6 Total equity and liabilities 60.5 58.3 60.4
CONSOLIDATED STATEMENT OF CASH FLOWS 01-06/ 01-06/ 01-12/ MEUR 2010 2009 2009
Cash flows from operating activities Profit for the period -1.3 -3.1 -2.4 Adjustments: Non-cash transactions 2.5 2.8 5.5 Interest expenses and interest income and taxes 0.0 -0.3 0.0 Change in working capital -3.0 0.0 1.8 Interest paid and received and taxes paid -0.3 -0.8 -1.2 Net cash flow from operating activities -2.1 -1.4 3.7
Cash flows from investing activities Investment in property, plant and equipment and intangible assets -1.3 -0.9 -2.0 Grants received for investments and sales of property, plant and equipment 0.1 0.1 0.2 Net cash flow from investing activities -1.2 -0.8 -1.8
Cash flows from financing activities Proceeds from non-current and current borrowings 5.0 5.1 Repayment of non-current and current borrowings -3.0 -3.5 -7.0 Dividends paid and treasury shares -0.9 -1.1 -1.1 Net cash flow from financing activities 1.1 -4.6 -3.0
Change in cash and cash equivalents -2.2 -6.8 -1.1
Cash and cash equivalents at beginning of period 10.6 11.7 11.7 Cash and cash equivalents at end of period 8.4 4.9 10.6
STATEMENT OF CHANGES IN EQUITY MEUR Share Share Trans- Revalu- Trea- Re- Total capital premium lation ation sury tained fund diff. re- share earn- serve ings Equity Jan. 1, 2010 6.3 7.4 -0.1 -0.1 -0.1 10.4 23.8 Dividends paid and treasury shares -0.9 -0.9 Total comprehensive income for the period 0.1 -1.3 -1.2 Equity June 30, 2010 6.3 7.4 0.0 -0.1 -0.1 8.2 21.6
Equity Jan. 1, 2009 6.3 7.4 0.0 -0.1 -0.1 13.7 27.2 Total comprehensive income for the period 0.0 -1.0 -1.0 Dividends -3.1 -3.1 Equity June 30, 2009 6.3 7.4 0.0 -0.1 -0.1 9.6 23.1
SEGMENT REPORTING 1-6/ 1-6/ 1-12 MEUR 2010 2009 2009 Operating segments Sales 25.4 24.0 53.1 Fireplaces 22.5 21.0 47.8 Natural Stone Products 2.9 3.0 5.3 Other items - - -
Operating profit/loss -1.3 -3.4 -2.4 Fireplaces -0.3 -2.4 -0.2 Natural Stone Products -0.1 -0.1 -0.3 Other items -0.9 -0.9 -1.9
OPERATING SEGMENTS QUARTERLY Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ 2010 2010 2009 2009 2009 2009 Operating segments Sales 14.7 10.7 15.6 13.5 13.0 11.0 Fireplaces 13.0 9.5 14.4 12.4 11.4 9.6 Natural Stone Products 1.7 1.2 1.2 1.1 1.6 1.4 Other items - - - - - -
Operating profit/loss 0.4 -1.7 0.3 0.7 -0.7 -2.7 Fireplaces 0.8 -1.1 1.0 1.2 -0.2 -2.2 Natural Stone Products 0.1 -0.2 -0.2 0.0 0.0 -0.1 Other items -0.5 -0.4 -0.5 -0.5 -0.5 -0.4
ASSETS AND LIABILITIES BY SEGMENT ON JUNE 30, 2010 Fire- Natural Other Total places Stone items Products Assets by segment 45.1 4.2 11.2 60.5 Liabilities by Segment 8.5 0.9 29.4 38.8 Investments 1.0 0.0 0.2 1.2 Depreciation and amortisation expenses 2.1 0.1 0.2 2.4
KEY FINANCIAL RATIOS AND SHARE RATIOS 1-6/10 1-6/09 4-6/10 4-6/09 1-12/09
Earnings per share, EUR -0.04 -0.08 0,00 -0.02 -0.06 Equity per share, EUR 0.58 0.62 0.58 0.62 0.64 Return on equity, % -11.7 -24.4 2.7 -12.1 -9.2 Return on investments, % -4.7 -12.9 4.3 -3.6 -4.3 Equity ratio, % 35.8 39.6 39.4 Net indebtness ratio, % 84.4 79.3 59.4 Current ratio 1.8 1.6 1.9 Gross investments, MEUR 1.2 0.9 2.1 Gross investments, % of sales 4.8 3.8 4.0 Research and development costs, MEUR 0.9 0.7 1.6 %/sales 3.6 2.7 3.1 Outstanding orders (30 June), MEUR 6.7 6.5 4.8 Average number of staff 374 393 417
Rate development of shares, EUR Lowest share price, EUR 1.07 0.67 0.67 Highest share price, EUR 1.79 1.30 1.30 Average share price, EUR 1.38 0.83 0.96 Closing price, EUR 1.35 0.90 1.06
Market capitalization at the end of period, 1000 EUR 49 976.7 33 317.8 39 241.0 (Supposing that the market price of the K-share is the same as that of the A-share) Number of shares traded, (1000 pcs) 2 342.5 1 349.7 3 959.0 % of total amount of A-shares 8.5 4.9 14.4 Number of shares average 37019770 37027647 37019770 37011603 37023708 Number of shares 30 June 37019770 37019770 37019770 37019770 37019770
Income taxes EUR million 01-06/10 01-06/09 01-12/09 Taxes for the current and previous reporting periods 0.0 0.0 0.1 Deferred taxes 0.4 0.9 0.9 Total 0.4 0.9 1.0
Collaterals given EUR million 6/10 6/09 12/09 Loans from credit institutions and other long term debts and loan guarantees, with related mortgages and pledges 24.8 22.4 21.9 Mortgages granted and collaterals pledged 29.3 25.1 28.2 Other given guarantees and pledges on behalf of own liabilities 0.8 0.5 0.8 Derivatives Interest rate swaps Nominal value 6.5 11.9 7.3 Fair value -0.2 -0.3 -0.3 Foreign exchange forward contracts Nominal value 0.2 - 0.1 Fair value 0.0 0.0 The fair value of derivatives is the gain or loss for closing the contract based on market rates at the balance sheet date.
Changes in tangible assets are classified as follows: 6/10 6/09 12/09 Acquisition costs 0.6 0.9 1.1 Proceeds from sale 0.0 0.0 -0.1 Total 0.6 0.9 1.0
Number of % of % of Share, shares shares voting EUR of rights share capital K shares (10 votes) 9 540 000 25.7 77.6 1 621 800 A shares (1 vote) 27 603 970 74.3 22.4 4 692 675 Total June 30, 2010 37 143 970 100.0 100.0 6 314 475
There have been no changes in Tulikivi Corporation´s share capital during the period. According to the articles of association the dividend paid for Series A shares shall be 0.0017 EUR higher than the dividend paid on Series K shares. The Series A share is listed on the NASDAQ OMX Helsinki Ltd. No flagging notifications were made to the company during the review period. The number of the shares in the company´s possession at the end of the period was 124 200 series A shares.
Related party transactions The following transactions with related parties took place: EUR 1000 6/10 6/09 12/09 Sales to associated companies 6 7 Purchases from associated companies 94 85 148
Sales to related parties 12
Leases from related parties 54 56 109
Receivables from the related parties - - 1 Debts to the related parties 2
Transactions with other related parties Tulikivi Corporation is a founder member of the Finnish Stone Research Foundation. The company has leased offices and storages from the property owned by the Foundation and North Karelia Educational Federation of Municipalities. The rent paid for these facilities was EUR 66 thousand (65 thousand) in the period. The rent corresponds with the market rents. The service charges from the Foundation were EUR 2 thousand.
EUR 1000 6/10 6/09 12/09 Salaries and other short-term employee benefits of the Board of Directors and Managing Directors 213 274 479 Other long term employee benefits 32 32 61
Largest shareholders on June 30, 2010 Name of shareholder Shares Pro- portion of total vote
- The Tulikivi Group´s sales amounted to EUR 10.7 million (EUR 11.0 million, 01-03/2009). - The Group´s result before taxes was EUR -1.9 (-3.0) million. Earnings per share were EUR -0.04 (-0.06). - Cash flow from operating activities before investments was EUR - 2.4 (-1.0) million. - Order books were EUR 8.2 (6.6 on 31 March 2009) million on 31 March. - The Group’s recovering sales and improved cost efficiency, are expected to improve net sales on the previous year, and the result for the year is expected to be positive.
Managing Director’s comments: “During the first quarter, there was a positive development in demand in Finland. In addition to the demand in Finland, the export of lining stone products also increased. Net sales from the export of fireplaces were reduced by the lower demand in Central Europe. A colder-than-normal winter slowed the completion of building projects and delayed deliveries, which lowered net sales at the beginning of the year.
In February we launched our first new interior design fireplaces and the Tulikivi Green products at the international fireplace exhibition in Europe. The products were very well received. Deliveries to consumers will start during the second half of the year.
On the annual level the positive development that started last year is continuing. Over the next few months, sales are expected to be on a clearly higher level than at the beginning of the year.”
Segment reporting The Group’s operating segments have been the Fireplaces Segment and the Natural Stone Products Segment. The Fireplaces Segment includes soapstone and ceramic fireplaces sold under the Tulikivi and Kermansavi brands, their accessories, utility ceramics and fireplace lining stones. The Natural Stone Products Segment includes interior design stone products for households and stone deliveries to construction sites. Expenses not allocated to a segment are recognised under ‘Other items’, which also include financial costs and taxes. Since the beginning of 2010 segment reporting has been defined by allocating data and personnel administration expenses, which were previously included in expenses not allocated to a segment, to the relevant operating segments. The comparison information has been changed accordingly.
The 2009 net sales of the Tulikivi Group totalled EUR 10.7 million (EUR 11.0 million in January – March 2009). The net sales of the Fireplaces Business amounted to EUR 9.5 (9.6) million, and those of the Natural Stone Business were EUR 1.2 (1.4) million. Construction activity was lower than normal in the Group’s main market areas during the winter months due to the exceptionally cold weather and this lowered the Group’s net sales.
Exports accounted for EUR 5.4 (5.6) million, or 50.1 (50.6) per cent, of total sales. The largest markets for the Group’s exports were Sweden and France. Sales in Finland totalled EUR 5.3 (5.4).
At the operating profit level, the Group posted a loss of EUR -1.7 (-2.7) million. In accordance with the Group’s segment reporting, the Fireplaces Business had an operating result of EUR -1.1 (-2.2) million, and the Natural Stone Products Business an operating result of EUR -0.2 (-0.1) million, while other items’ expenses were EUR 0.4 (0.4) million.
The Group’s result before taxes was EUR -1.9 (-3.0) million and net result was EUR -1.4 (-2.4) million. Earnings per share were EUR -0.04 (-0.06).
Financing and investments Cash flow from operating activities before investments was EUR - 2.4 (-1.0) million. At the end of the reporting period, the Group’s cash and other liquid assets were EUR 9.0 (9.6) million, and the total of undrawn credit facilities and unused credit limits amounted to EUR 3 million. The equity ratio was 37.3 per cent (37.4 per cent on 31 March, 2009). The ratio of interest- bearing net debt to equity, or gearing, was 76.5 (69.4) per cent. The current ratio was 2.0 (1.6). Financial income was EUR 0.1 (0.1)million and financial expenses EUR 0.3 (0.4) million. The equity per share amounted to EUR 0.60 (0.64).
The Group’s investments in production, quarrying and development were EUR 0.7 (0.5) million. Research and development costs were EUR 0.5 (0.4) million, i.e. 4.2 (3.4) per cent of net sales. EUR 0.1 (0.1) million of this amount was capitalised in the balance sheet. Product development focused on the productisation of the Tulikivi Green products and interior design fireplace that will be launched for consumers in the autumn. Other large development projects include the development of the Group's processes and renewal of the enterprise resource planning system. The aim is to intensify operations and to implement the Group-wide information system.
Personnel The Group employed an average of 361 (399) people during the reporting period. Salaries and bonuses totalled EUR 3.5 (4.2) million during the period.
Tulikivi Corporation has an incentive plan which includes a share- based incentive plan for the Managing Director and key personnel of the company and an incentive pay scheme for all personnel. The share-based incentive plan launched in 2008 includes three earning periods which are the calendar years 2008, 2009 and 2010. Under the plan, the bonus is determined on the basis of the Group’s result after financial items and the cash flow from operating activities after investments. A maximum total of about 360 000 Series A shares and a cash payment corresponding to the value of the shares can be paid as rewards on the basis of the entire share-based incentive plan. In 2010 the bonus can amount to a maximum of 218 750 Tulikivi Corporation Series A shares and a cash payment corresponding to the value of the shares. A maximum of 50 000 A shares of this can go to the Managing Director. The incentive pay scheme is based on of the Group´s result and on the improvement of productivity. The Managing Director and key persons also have personal targets in addition to this.
Treasury shares The company did not purchase or assign any of its own shares during the period. At the end of the period the company held a total of 124 200 of its own A series shares which corresponds to 0.3 per cent of the company’s share capital and 0.1 per cent of all voting rights.
Risks and uncertainties The Group’s near-term risks are mainly associated with the increased uncertainty among consumers and the effect of this on consumers’ building and fireplace projects. The risks and the means of preventing and controlling them are presented in more detail in section 38 of the notes to the financial statements in the 2009 Annual Report.
Events following the end of the reporting period Resolutions of the Annual General Meeting Dividends Tulikivi Corporation´s Annual General Meeting, held on 14 April 2010, resolved to pay a dividend of EUR 0.0250 on Series A shares and EUR 0.0233 on Series K shares. The dividend will be paid out on April 26, 2010.
Board of Directors, Managing Director and auditors Tulikivi Corporation’s Annual General Meeting elected the following members o the Board of Directors of the parent company and domestic business subsidiaries: Bishop Ambrosius, Juhani Erma, Olli Pohjanvirta, Markku Rönkkö, Maarit Toivanen-Koivisto, Heikki Vauhkonen and Matti Virtaala. The Board of Directors elected Matti Virtaala as Chairman from amongst its members. The auditor is KPMG Oy Ab, Authorized Public Accountants, from Helsinki.
Amendment of the Articles of Association An amendment of the first paragraph of Section 8 (Notice of meeting) of the Articles of Association was adopted as proposed by the Board.
Authorisation to repurchase the company’s own shares The Annual General Meeting authorised the Board to acquire the company’s own shares as proposed by the Board. More information about the authorisation in Notes to this interim report.
Authorisation to decide on share issues and on transfer of the company’s own shares in the possession of the company and the right to issue special rights which give entitlement to shares as defined in Chapter 10, section 1, of the Limited Liability Companies Act The Annual General Meeting authorised the Board of Directors to decide on issuing new shares and the transfer of the company’s own shares in the possession of the company as proposed by the Board. The authorization also includes the right to issue special rights, as defined in Chapter 10, section 1, of the Limited Liability Companies Act, which entitle to subscribe for shares against payment or by setting off the receivable. More information about the authorisation in Notes to this interim report.
The transfer the Funds of the Share Premium Account to the Reserve for Invested Unrestricted Equity As proposed by the Board, the Annual General Meeting decided that the share premium account on the company’s balance sheet as of 31 December 2009 will be reduced by EUR 7,334,116.06, by transferring all the funds in the share premium account on the balance sheet as of 31 December 2009 to the reserve for invested unrestricted equity.
Future outlook Private house building along with the demand of fireplaces has increased in Finland and this positive development is expected to continue. Sales of lining stone products have clearly risen, but sales of fireplaces are yet to increase in Central Europe. New products will improve the company’s net sales during the second half of the year. Adjustment measures will be continued in the Group, with layoffs where necessary.
With the company’s recovering sales and improved cost efficiency, the full-year net sales are expected to be up from the previous year and the result is expected to be positive.
The order books at the end of the review period amounted to EUR 8.2 (6.6 on 31 March 2009 and 4.8 on 31 December 2009) million.
INTERIM REPORT January – March 2010, SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME EUR million 01-03/ 01-03/ Change, 01-12/ 2010 2009 % 2009
Sales 10.7 11.0 -2.0 53.1 Other operating income 0.1 0.1 0.6 Increase/decrease in inventories in finished goods and in work in progress 0.0 -0.5 -1.0 Production for own use 0.1 0.1 0.3 Raw materials and consumables 2.2 2.1 10.2 External services 1.6 1.5 7.6 Personnel expenses 4.4 5.4 20.0 Depreciation and amortisation 1.2 1.3 5.5 Other operating expenses 3.4 3.1 12.1
Operating profit/loss -1.7 -2.7 36.5 -2.4 Percentage of sales -16.0 -24.7 -4.5 Finance income 0.1 0.1 0.2 Finance expense -0.2 -0.4 -1.1 Share of the profit of associated company 0.0 0.0 0.0
Profit before tax -1.9 -3.0 36.8 -3.3 Percentage of sales -17.8 -27.7 -6.2 Income tax expenses 0.4 0.7 1.0
Profit/loss for the period -1.5 -2.4 37.5 -2.4
Other comprehensive income Interest rate swaps 0.0 0.0 0.0 Translation differences 0.1 0.0 0.0
Total comprehensive income for the period -1.4 -2.4 42.1 -2.4
Earnings per share attributable to the equity holders of the parent company, EUR basic and diluted -0.04 -0.06 33.3 -0.06
CONSOLIDATED STATEMENT OF FINANCIAL POSITION EUR million 03/10 03/09 12/09 ASSETS Non-current assets Property, plant and equipment Land 1.0 1.0 1.0 Buildings 7.3 7.9 7.4 Machinery and equipment 7.7 9.8 8.1 Other tangible assets 1.0 1.2 1.1 Intangible assets Goodwill 4.2 4.3 4.2 Other intangible assets 10.7 11.1 10.6 Investment properties 0.2 0.2 0.2 Available-for-sale investments 0.1 0.1 0.1 Receivables Deferred tax assets 2.0 1.5 1.6 Total non-current assets 34.2 37.1 34.3
Current assets Inventories 10.2 11.2 10.2 Trade receivables 4.9 4.6 4.1 Current income tax receivables 0.5 0.2 0.3 Other receivables 1.1 1.0 0.9 Cash and other liquid assets 9.0 0.6 10.6 Total current assets 25.7 26.6 26.1 Total assets 59.9 63.7 60.4
EQUITY AND LIABILITIES Equity Share capital 6.3 6.3 6.3 Share premium fund 7.4 7.4 7.4 Treasury shares -0.1 -0.1 -0.1 Translation difference 0.0 0.0 -0.1 Revaluation reserve -0.1 -0.1 -0.1 Retained earnings 8.8 10.3 10.4 Total equity 22.3 23.8 23.8 Non-current liabilities Deferred income tax liabilities 1.8 2.0 1.9 Provisions 1.0 0.9 1.0 Financial liabilities 21.6 20.8 19.9 Other debt 0.1 0.0 0.1 Total non-current liabilities 24.5 23.7 22.9 Current liabilities Trade and other payables 8.3 9.8 8.7 Current income tax liabilities 0.0 0.1 0.0 Current provisions 0.2 1.0 0.2 Current financial liabilities 4.6 5.3 4.8 Total current liabilities 13.1 16.2 13.7 Total liabilities 37.6 39.9 36.6 Total equity and liabilities 59.9 63.7 60.4
CONSOLIDATED STATEMENT OF CASH FLOWS EUR million 01-03/ 01-03/ 01-12/ 2010 2009 2009 Cash flows from operating activities Profit for the period -1.5 -2.4 -2.4 Adjustments: Non-cash transactions 1.2 1.3 5.5 Interest expenses and interest income and income taxes -0.2 -0.3 0.0 Change in working capital -1.6 0.7 1.8 Interest paid and received and taxes paid -0.3 -0.3 -1.2 Net cash flow from operating activities -2.4 -1.0 3.7
Cash flows from investing activities Investment in property, plant and equipment and intangible assets -0.7 -0.4 -2.0 Grants received for investments and sales of property, plant and equipment 0.1 0.2 Net cash flow from investing activities -0.6 -0.4 -1.8
Cash flows from financing activities Loans taken 3.0 5.1 Repayment of loans -1.6 -0.6 -7.0 Dividends paid and treasury shares -0.1 -1.1 Net cash flow from financing activities -1.4 -0.7 -3.0
Change in cash and cash equivalents -1.6 -2.1 1.1
Cash and cash equivalents at beginning of period 10.6 11.7 11.7
Cash and cash equivalents at end of period 9.0 9.6 10.6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY EUR million Share Share Trans- Revalu- Trea- Re- Total capital premium lation ation sury tained fund diff. reserve shares earnings
Equity January 1, 2010 6.3 7.4 -0.1 -0.1 -0.1 10.4 23.8 Total comprehensive income for the period 0.1 -1.5 -1.4 Equity March 31. 2010 6.3 7.4 0.0 -0.1 -0.1 8.9 22.3
Equity January 1, 2009 6.3 7.4 0.0 -0.1 -0.1 13.7 27.2 Dividends paid and treasury shares 0.0 -1.0 -1.0 Total comprehensive income for the period -2.4 -2.4 Equity March 31, 2009 6.3 7.4 0.0 -0.1 -0.1 10.3 23.8
SEGMENT REPORTING Operating segments EUR million 01-03/ 01-03/ 01-12/ 2010 2009 2009 Sales 10.7 11.0 53.1 Fireplaces 9.5 9.6 47.8 Natural Stone Products 1.2 1.4 5.3
Operating profit/loss -1.7 -2.7 -2.4 Fireplaces -1.1 -2.2 -0.2 Natural Stone Products -0.2 -0.1 -0.3 Other items -0.4 -0.4 -1.9
OPERATING SEGMENTS QUARTERLY EUR million Q1/ Q4/ Q3/ Q2/ Q1/ 2010 2009 2009 2009 2009
Sales 10.7 15.6 13.5 13.0 11.0 Fireplaces 9.5 14.4 12.4 11.4 9.6 Natural stone products 1.2 1.2 1.1 1.6 1.4
Operating profit/loss -1.7 0.3 0.7 -0.7 -2.7 Fireplaces -1.1 1.0 1.2 -0.2 -2.2 Natural stone products -0.2 -0.2 0.0 0.0 -0.1 Other items -0.4 -0.5 -0.5 -0.5 -0.4
ASSETS AND LIABILITIES BY SEGMENT ON MARCH 31, 2010 Fire- Natural Other Total places stone items products Assets by segment 43.8 4.2 11.9 59.9 Liabilities by segment 8.0 0.7 28.9 37.6 Investments 0.6 0.0 0.1 0.7 Depreciation and amortisation expenses 1.0 0.1 0.1 1.2
KEY FINANCIAL RATIOS AND SHARE RATIOS 3/10 3/09 12/09 07
Earnings per share, EUR -0.04 -0.06 -0.06 Equity per share, EUR 0.60 0.64 0.64 Return on equity, % -25.6 -37.0 -9.2 Return on investments, % -13.8 -20.1 -4.3 Equity ratio, % 37.3 37.4 39.4 Net indebtness ratio, % 76.5 69.4 59.4 Current ratio 2.0 1.6 1.9 Gross investments, EUR million 0.7 0.5 2.1 Gross investments, % of sales 6.5 4.6 4.0 Research and development costs, EUR million 0.5 0.4 1.6 %/sales 4.2 3.4 3.1 Outstanding orders (31.March), EUR million 8.2 6.6 4.8 Average number of staff 361 399 417
Rate development of shares, EUR Lowest share price, EUR 1.07 0.67 0.67 Highest share price, EUR 1.38 0.85 1.30 Average share price, EUR 1.25 0.73 0.96 Closing price, EUR 1.35 0.70 1.06
Market capitalization at the end of period, 1000 EUR 49977 25907 39241 (Supposing that the market price of the K-share is the same as that of the A-share) Number of shares traded, (1000 pcs) 1167 673 3959 % of total amount of A-shares 4.2 2.5 14.4 Number of shares average 37019770 37043690 37023708 Number of shares at the end of period 37019770 37009970 37019770
Income taxes EUR million 01-03/10 01-03/09 01-12/09 Taxes for the current and previous reporting periods -0.1 0.1 Deferred taxes 0.4 0.7 0.6 Total 0.4 0.6 0.7
Collaterals given EUR million 3/10 3/09 12/09 Loans from credit institutions and other long term debts and loan guarantees, with related mortgages and pledges 22.7 20.7 20.9 Mortgages granted and collaterals pledged 28.0 25.1 28.6 Other given guarantees and pledges on behalf of own liabilities 0.9 0.5 0.5 Derivatives Interest rate swaps Nominal value 7.1 12.8 7.3 Fair value -0.3 -0.3 -0.3 Foreign exchange forward contracts Nominal value 0.2 - 0.1 Fair value The fair value of derivatives is the gain or loss for closing the contract based on market rates at the balance sheet date.
Provisions are itemized in greater detail in notes 26. Provisions and 34. Contingent liabilities in the consolidated financial statements in Annual Report 2009. Contingent liabilities have not changed after the end of the financial period.
Changes in tangible assets are classified as follows: 3/10 3/09 12/09 Acquisition costs 0.2 0.2 1.1 Proceeds from sale -0.1 Total 0.2 0.2 1.0
Number of % of % of Share, shares shares voting EUR of rights share capital K shares (10 votes) 9 540 000 25.7 77.6 1 621 800 A shares (1 vote) 27 603 970 74.3 22.4 4 692 675 Total March 31, 2010 37 143 970 100.0 100.0 6 314 475
Related party transactions The following transactions with related parties took place: EUR 1000 3/10 3/09 12/09 Sales to associated companies - 5 7 Purchases from associated ompanies 63 44 148
Leases from related parties 27 32 109 Receivables from the related parties 12 1 Debts to the related parties 2
Transactions with other related parties Tulikivi Corporation is a founder member of the Finnish Stone Research Foundation. The company has leased offices and storages from the property owned by the Foundation and North Karelia Educational Federation of Municipalities. The rent paid for these facilities was EUR 33 thousand (32 thousand) in the period. The rent corresponds with the market rents.
Largest shareholders on March 31, 2010 Name of shareholder Shares Pro- portion of total vote
Vauhkonen Reijo 4 186 827 24.3 % Vauhkonen Heikki 3 010 974 24.1 % Elo Eliisa 2 957 020 5.9 % Virtaala Matti 2 957 020 12.6 % Mutual Pension Insurance Ilmarinen 1 902 380 1.5 % Mutanen Susanna 1 643 800 7.2 % Vauhkonen Mikko 782 310 3.5 % Paatero Ilkka 718 430 0.6 % Nuutinen Tarja 674 540 3.5 % Investment Fond Phoebus 585 690 0.5 % Other shareholders (incl. treasury shares) 18 255 862 16.3 %