The shareholders of Tulikivi Corporation are invited to the Annual General Meeting to be held on 17 April 2008 at 12.00 at the Kivikylä auditorium in Nunnanlahti, Juuka.
The following matters will be dealt with by the Annual General Meeting: 1. Matters belonging to the Annual General Meeting according to Article 10 of the Articles of Association and Chapter 5 Article 3 of the Companies’ Act. 2. Proposal concerning the composition of the Board of Directors
The nomination committee proposes to the Annual General Meeting that Juhani Erma, Risto Jääskeläinen (Bishop Ambrosius), Maarit Toivanen-Koivisto, Eero Makkonen, Heikki Vauhkonen, Reijo Vauhkonen and Matti Virtaala as members of the Board of Directors for the new term.
3. Proposal concerning auditor
The Board of Directors proposes to the Annual General Meeting that the audit firm KPMG Oy Ab is elected as auditor of the company with authorised public accountant Ari Eskelinen as the responsible auditor.
4. Proposal to distribute dividends
The Board of Directors proposes to the Annual General Meeting that 0.0450 euros/share is paid as dividend to the A-series shares and that 0.0433 euros/share is paid as dividend to the K-series shares. The dividend payment resolved by the Annual General Meeting is to be paid to shareholders who, on the record date for dividend payment, are registered in the share register of the company kept by the Finnish Central Securities Depository. The record date for the dividend payment is 22 April 2008. The Board of Directors proposes to the Annual General Meeting that the dividend is paid on 29 April 2008.
5. Proposal by the Board of Directors to authorise the Board of Directors to decide upon the repurchase of own shares
The Board of Directors proposes to the Annual General Meeting that the Annual General Meeting would resolve to authorise the Board of Directors to decide on the repurchase of the company’s own shares under the following terms:
a) The company’s shares are to be acquired in order to develop the company’s capital structure and to be used as consideration in acquisitions or other structural arrangements in a manner determined by the Board of Directors. In addition, the shares may be acquired for the use in share-based incentive arrangements, for payment of share-based remuneration or otherwise to be transferred or cancelled.
b) A maximum number of 2 760 397 of the A-series shares and 954 000 of the K-series shares of the company may be repurchased.
c) Shares will be acquired in the following manner:
(i) The company’s A-series shares will be acquired through public trading at the OMX Nordic Exchange Helsinki in accordance with the decision of the Board of Directors and by deviating from the ownership share of the shareholders, at the price set at the OMX Nordic Exchange Helsinki and in accordance with its rules;
(ii) The company’s K-series shares will be acquired in proportion to shares owned by the shareholders by making an offer to the owners of the K-series shares with the following terms: the price paid for the K-series shares corresponds to the weighted average price paid in the executed transactions in the public trading of the A-series shares at the OMX Nordic Exchange Helsinki during the two week period preceding the signing date of the offer. In case the company has not managed to acquire the number of K-series shares set out in the resolution by the General Meeting, the Board of Directors may acquire the missing amount from those owners of the K-series shares willing to sell more than their proportional share of the shares to be acquired. In case more shares are offered for sale than the number to be purchased, the Board of Directors will decide, having regard to the ownership share of the sellers and the number of shares offered for sale, how the number shares to be purchased is to be allocated among the shareholders offering shares for repurchase.
d) The repurchase of the shares will be carried out with funds available for distribution of profits and the acquisition will reduce the equity available for distribution.
e) The authorisation to repurchase shares is in force until the Annual General Meeting to be held in 2009, however, not for a longer period than 18 months as of the resolution by the General Meeting.
f) All other issues related to the repurchase of shares are decided by the Board of Directors of the Company.
6. Proposal by the Board of Directors to authorise the Board of Directors to decide upon an issue of shares and a transfer of the company’s own shares in possession of the company and a right to issue special rights entitling to shares as defined in Chapter 10 Article 1 of the Companies’ Act.
The Board of Directors proposes to the Annual General Meeting that the Annual General Meeting would resolve to authorise the board of directors to decide upon an issue of new shares or a transfer of the company’s own shares in the possession of the company. The new shares or the company’s own shares in possession of the company may be issued against payment or free of charge to all shareholders in accordance with their proportional ownership of the company’s shares or by deviating from the shareholders’ pre-emptive subscription right provided there is a weighty financial reason from the company’s point of view for the deviation. A share issue free of charge may deviate from the shareholders’ pre-emptive subscription right only if there is a particularly weighty reason from the point of view of the company and all its shareholders.
New shares may be issued in the following amounts: a total of no more than 5 520 794 A-series shares and no more than 1 908 000 K-series shares. The company’s own shares in the company’s possession may be issued in the following amounts: a total of no more than 5 520 794 A-series shares and no more than 1 908 000 K-series shares.
In addition the authorisation would include a right to issue cost-free shares to the company, provided that the number of shares issued to the company would not exceed one tenth (1/10) of all shares of the company. When calculating this number, the number of shares held by the company as well as those held by its subsidiaries must be accounted for as set out in Chapter 15, Section 11, paragraph 1 of the Companies’ Act.
The authorisation also includes the right to issue special rights, as defined in Chapter 10, Section 1 of the Companies’ Act, which entitle to subscribe for new shares or acquire shares in the possession of the company against payment. The payment may be made in cash or by setting off the subscriber’s receivable against the company as payment for the share subscription or acquisition.
The Board of Directors is entitled to decide upon other issues related to the share issues.
The authorisation to repurchase shares is in force until the Annual General Meeting to be held in 2009.
Disclosure of the documents
The annual accounts of the company and the proposals made to the General Meeting are available for inspection by the shareholders as of 17 March 2008 at the company’s head office at Nunnanlahti and on the Internet homepage of the company at the address www.tulikivi.com. Copies of the documents will be sent to shareholders upon request. The annual report will be sent by mail to all shareholders.
Right to participate and advance notification
Shareholders who have at the latest on 7 April 2008 been registered as shareholders in the share register of the company maintained by the Central Securities Depository are entitled to attend the General Meeting.
A shareholder who wishes to attend at the General Meeting shall notify the company in advance thereof at the latest on 7 April 2008. The notification should be made either by phone to Kaisa Toivanen, number 0207 636 251, by e-mail to the address kaisa.toivanen@tulikivi.fi or by mail to the address Tulikivi Corporation / yhtiökokous, 83900 Juuka. Any powers of attorney should be presented in connection with the advance notification.
In Juuka 6 March 2008
TULIKIVI CORPORATION BOARD OF DIRECTORS
An annual Summary of Tulikivi Corporation´s stock exchange releases and announcements 2007 is available on company´s web-site at the address www.tulikivi.com/Investors/Releases/Annual summary 2007
Some of the information included in the releases and announcements might be out of date.
TULIKIVI CORPORATION
Heikki Vauhkonen Managing Director
Distribution: OMX Nordic Exchange in Helsinki Central media www.tulikivi.com
For additional information: Tulikivi Corporation, 83900 Juuka, tel. +358 207 636 000, www.tulikivi.com – Financing Director Arja Lehikoinen
The Board of Directors of Tulikivi Corporation has decided that the Annual General Meeting will be held on April, 17 at 12:00 in Juuka. The Annual General Meeting will handle the issues pertaining to the Annual General Meeting and in addition:
-Authorisation to the Board of Directors to decide on acquisition of the company’s own shares amounting to the maximum number of 2,760,397 series A shares and 954,000 series K shares.
-Authorisation to the Board of Directors to decide on issues of new shares and conveyance of the company’s own shares in its possession and granting special rights that give entitlement to shares as set forth in the Companies Act, Chapter 10, Article 1. The maximum number of new series A shares that can be issued is 5,520,794 and the maximum number of series K shares that can be issued is 1,908,000. The maximum number of own shares that can be conveyed equals the number of new shares that can be issued. The authorisation can also be used for settling the company’s own share-based payments.
The Board of Directors will later decide about the notice of the Annual General Meeting and the proposals of the Board of Directors to the Annual General Meeting will be published later.
Tulikivi Corporation
The Board of Directors
– The Tulikivi Group´s sales were EUR 69,9 million in 2007 (EUR 82,1 million year 2006). – The Group´s profit before taxes was EUR 0,2 (7,8) million. – Cash flow from operating activities before investments was EUR 2,5 (12,0) million. – The order backlog at the end of the year totalled EUR 6.9 (10.4) million.
Changes in segment reporting and Group structure As of January 1, 2007, the Group’s business segments are the Fireplaces Business, Natural Stone Products Business and Other Operations. The Fireplaces Business includes soapstone and ceramic fireplaces, and also stone lining for heaters. The Natural Stone Products Business includes interior decoration stone products for households and stone deliveries to construction sites. Other Operations includes expenses that are not allocated to the Group’s business functions, tax and financial expenses, as well as sales of ceramic utensils and the expenses of this business. Kermansavi Oy merged with Tulikivi Corporation as at December 31, 2007.
Sales and result The Group’s sales amounted to EUR 69.9 million (EUR 82.1 million in 2006). The Fireplaces Business posted sales of EUR 59.7 (72.0) million, the Natural Stone Products Business sales of EUR 7.4 (7.3) million and Other Operations sales of EUR 2.8 (2.8) million. The Group´s comparable sales, excluding sales of ceramic fireplaces and utensils in Q1 amounted to EUR 66.2 million.
Sales in Finland accounted for EUR 38.3 (40.2) million, representing 54.8 (48.9) per cent of the Group´s total sales. Exports accounted for EUR 31.6 (41.9) million. The largest countries for exports were Sweden, Germany and France.
The Group’s operating profit was EUR 1.0 (8.2) million. The Fireplaces Business had an operating profit of EUR 4.4 (11.0) million, the Natural Stone Products Business an operating profit of EUR 0.4 (0.3) million and Other Operations an operating loss of EUR –3.8 (-3.1) million. The result for Fireplaces Business was burdened by the decrease in general demand for fireplaces resulting in drop in sales, additional costs incurred by the introduction of the domestic distribution channel and the start-up of the new factory, and non-recurring costs amounting to EUR 0.7 million incurred in adjusting the production to the prevailing demand. The result of the Other operations includes the loss of ceramic utensils sales, EUR 0.8 million, comprising non-recurring expenses amounting to EUR 0.3 million.
Consolidated profit before taxes was EUR 0.2 (7.8) million. Profit for the year was EUR 0.4 million. The Group´s return on investment was 2.5 (21.7) per cent. Earnings per share amounted to EUR 0.01 (0.16).
Cash flow and financing The Group’s financial position remained good. Cash flow from operating activities before investments amounted to EUR 2.5 (12.0) million. Current ratio was 1.6 (1.5). The equity ratio was 43.9 (46.4) per cent. The ratio of interest-bearing net debt to equity, or gearing, was 64.7 (40.9) per cent. Equity per share amounted to EUR 0.74 (EUR 0.83). Finance income during the reporting period amounted to EUR 0.2 million and financial expenses to EUR 1.0 million.
Investments and development activities The Group’s investments totaled EUR 5.7 (24.1) million. The major investments during the reporting period were assigned for production, quarrying machines, opening new quarries and introduction of new distribution channel.
R&D expenditure totalled EUR 1.6 (1.8) million which is in comparison to sales 2.3 (2.2) per cent. In development activities the focus was on developing combustion techniques for fireplaces. The soapstone reserves were explored in addition to Finland also in the Russian part of Karelia.
Personnel The Group employed an average of 682 people during the reporting period (664) and at the end of the reporting period 693 (765). Of the personnel, 549 were employed by Fireplaces, 54 by Natural Stone Products and 90 by Other Operations. 97.3 per cent of the employment relationships were permanent and 2.7 per cent temporary. Salaries and bonuses during the financial year totalled EUR 21.2 (22.3) million. Occupational safety has developed well. The number of work accidents per one hundred thousand working hours was 0.04 (0.06). The number of personnel was adjusted to meet the group´s objectives.
As a result for the co-operation negotiations which ended in January 2008 67 persons were terminated and 26 persons were laid off until further notice. A provision for restructuring costs amounting to EUR 0.7 million was recognised in the financial statements.
Decisions made by Annual General Meeting held on April 13, 2007 Dividend distribution Tulikivi Corporation´s Annual General Meeting decided on April 13, 2007 to pay dividend EUR 0.090 per A share and 0.088 per K share.
Board of Directors, managing director and auditors At Tulikivi Corporation’s Annual General Meeting held on April 13, 2007, the following members were elected to the Board of Directors: Bishop Ambrosius, Juhani Erma, Eero Makkonen, Maarit Toivanen-Koivisto, Heikki Vauhkonen, Reijo Vauhkonen and Matti Virtaala. From amongst its members, the Board of Directors elected Matti Virtaala chairman. Juha Sivonen acted as managing director for Tulikivi Corporation until May 28, 2007 when he was preceded by Heikki Vauhkonen.
The firm of authorized public accountants KPMG Oy Ab is the company’s auditor.
Authorization to acquire company’s own shares The Board of Directors has an authorization 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 2008.
The Board of Directors has an authorization to decide on share issues and the conveyance of the company’s own shares in the possession of the company and the granting of special rights that give entitlement to shares as set forth in Chapter 10, Article 1 of the Companies Act.
The Annual General Meeting authorized the Board of Directors to decide on issuing new shares and the conveyance of own shares in the company’s possession. 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 also includes the right to issue special rights, as defined in Chapter 10, Article 1 of the Companies Act, entitling the right holder to subscribe for shares against payment or by setting off the receivable.
Changes in the articles of association The articles of association for Tulikivi Corporation were changed so that they are in accordance with the new Companies Act.
Significant risks related to business operations The Group´s risks are divided into strategic and operational risks, damage, casualty and loss risks and financial risks. The risk analysis and risk management are part of strategic planning process which is conducted regularly on an annual basis. In the assessment of risks, their probability and impacts are taken into account. The risk management strives to ensure that the risks affecting Tulikivi Group´s business activities are identified and managed as effectively as possible, in order to achieve Group´s strategic and economic objectives.
Environmental obligations Tulikivi´s environmental strategy aims towards systematic progress in environmental efforts in the specified areas. All of Tulikivi Corporation´s quarries have the environmental permits required. In addition the Group has pending renewal processes for environmental permits. The Group operates in line with environmental permits and complies with the requirements of the authorities and environmental protection.
The company bears its responsibilities for the environmental impacts of its operations. On the basis of the Mining Act and environmental legislation, the Tulikivi Group has landscaping obligations that must met when operating the quarries and after quarries and plants are eventually shut down. The Group´s operations do not burden the environment with hazardous or poisonous substances.
The Group is neither party to judicial or administrative procedures concerning environmental issues nor is it aware of any environmental risks that would have a significant effect on its financial position.
Future Outlook The new domestic distribution channel works more effectively. The demand for fireplaces is developing in a different way in European countries. This is reflected especially in demand for lining stones. The sales of the Group is expected to remain on the same level as in 2007 but the result is anticipated to improve significantly.
The Board´s dividend proposal The parent company´s distributable equity amounts to EUR 7 504 thousand, of which the profit for the period accounts for EUR 46 thousand. The Board will propose to the Annual General Meeting that the distributable equity be used as follows:
Dividend payout: EUR 0.0450/share on Series A shares EUR 0.0433/share on Series K shares To a total of EUR 1 655 thousand
Retained in equity 5 849 thousand. No significant changes have taken place in the company´s financial position after the end of the financial year. The company´s liquidity is good and in the view of the Board of Directors the proposed dividend payout does not jeopardize the company´s solvency.
CONSOLIDATED INCOME STATEMENT MEUR 01-12/ 01-12/ Change 10-12/ 10-12/Change 2007 2006 % 2007 2006 %
Sales 69.9 82.1 -14.9 16.8 24.5 -31.3 Other operating income 0.6 0.6 0.1 0.1 Increase/decrease in inventories in finished goods and in work in progress 2.1 -0.3 0.0 -0.1 Production for own use 1.1 1.0 0.2 0.3 Raw materials and consumables 14.2 14.4 3.4 4.5 External services 11.1 10.5 2.9 3.3 Personnel expenses 27.1 28.7 7.0 8.5 Depreciation and amortisation 5.7 5.2 1.3 1.5 Other operating expenses 14.7 16.3 3.3 4.5
Operating profit 1.0 8.2 -88.3 -0.7 2.5 -127.0 Percentage of sales 1.4 10.0 -4.0 10.2 Finance costs (net) -0.8 -0.4 -0.2 0.0 Share of the profit of associated companies 0.0 0.0 0.0 0.0
Profit before tax 0.2 7.8 -97.9 -0.9 2.4 -137.8 Percentage of sales 0.2 9.5 -5.5 9.9 Income taxes 0.2 -2.1 0.5 -0.7
Profit for the year 0.4 5.7 -93.7 -0.4 1.7 -123.8
Earnings per share attributable to the equity holders of the parent company, EUR basic and diluted 0.01 0.16
CONSOLIDATED BALANCE SHEET MEUR 12/07 12/06 ASSETS Non-current assets Property, plant and equipment Land 1.1 0.9 Buildings 8.6 8.9 Machinery and equipment 12.7 13.8 Other tangible assets 1.4 1.2 Intangible assets Goodwill 4.3 4.3 Other intangible assets 11.1 10.5 Investment properties 0.2 0.2 Available-for-sale investments 0.1 0.1 Receivables Deferred tax assets 1.0 0.6 Total non-current assets 40.5 40.5
Current assets Inventories 12.7 10.6 Trade receivables 5.3 8.5 Current income tax receivables 0.1 0.0 Other receivables 0.5 2.0 Cash and cash equivalents 3.8 4.9 Total current assets 22.4 26.0 Total assets 62.8 66.5
EQUITY AND LIABILITIES Equity Share capital 6.3 6.3 Share premium fund 7.4 7.4 Translation difference -0.1 Retained earnings 14.0 17.0 Total equity 27.6 30.7 Non-current liabilities Deferred income tax liabilities 2.3 3.1 Provisions 0.9 0.8 Interest-bearing debt 17.7 14.7 Other debt 0.3 0.4 Total non-current liabilities 21.2 19.0 Current liabilities Trade and other payables 9.4 13.7 Current income tax liabilities 0.1 0.4 Current provisions 0.7 Current interest-bearing debt 3.8 2.7 Total current liabilities 14.0 16.8 Total liabilities 35.2 35.8 Total equity and liabilities 62.8 66.5
CONSOLIDATED CASH FLOW STATEMENT MEUR 01-12/ 01-12/ 2007 2006 Cash flows from operating activities Profit for the period 0.4 5.7 Adjustments: Non-cash transactions 5.5 5.1 Interest expenses and interest income and income taxes 0.6 2.5 Change in working capital -1.8 0.8 Interest paid and received and taxes paid -2.2 -2.1 Net cash flow from operating activities 2.5 12.0 Cash flows from investing activities Acquisition of subsidiaries -11.0 Investment in property, plant and equipment and intangible assets -5.7 -10.1 Grants received for investments and sales of property, plant and equipment 1.4 1.0 Net cash flow from investing activities -4.3 -20.1
Cash flows from financing activities Non-current and current loans taken 8.5 15.3 Repayment of non-current loans -4.4 -3.8 Dividends paid -3.4 -2.6 Net cash flow from financing activities 0.7 8.9
Change in cash and cash equivalents -1.1 0.8
Cash and cash equivalents at beginning of period 4.9 4.1
Cash and cash equivalents at end of period 3.8 4.9
KEY FINANCIAL RATIOS AND SHARE RATIOS 12/07 12/06 Order backlog (Dec. 31), MEUR 6.9 10.4 Gross investment, MEUR 5.7 24.1 Gross investment, % of sales 8.1 29.4 Average number of personnel 682 664
Earnings per share, EUR 0.01 0.16 Equity per share, EUR 0.74 0.83 Return on investment, % 2.5 21.7 Equity ratio, % 43.9 46.4 Gearing, % 64.7 40.9 Current ratio 1.6 1.5
Number of shares, average 37143970 36784755 Number of shares Dec. 31, 2007 37143970 37143970
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY MEUR Share Share Trans- Re- Total capital premium lation tained fund diff.earnings
Equity January 1, 2007 6.3 7.4 0.0 17.0 30.7 Translation differences -0.1 -0.1 Contributions -0.1 -0.1 Profit for the year 0.4 0.4 Dividends -3.3 -3.3 Equity Dec.31, 2007 6.3 7.4 -0.1 14.0 27.6
Equity January 1, 2006 6.2 5.4 0.0 13.9 25.5 Translation differences 0.0 0.0 Contributions -0.1 -0.1 Profit for the year 5.7 5.7 Dividends -2.5 -2.5 Share issue 0.1 2.0 2.1 Equity Dec. 31, 2006 6.3 7.4 0.0 17.0 30.7
SEGMENT REPORTING 01-12/ 01-12/ MEUR 2007 2006 Sales 69.9 82.1 Fireplaces Business 59.7 72.0 Natural Stone Products Business 7.4 7.3 Other Operations 2.8 2.8
Operating profit 1.0 8.2 Fireplaces Business 4.4 11.0 Natural Stone Products Business 0.4 0.3 Other Operations -3.8 -3.1
BUSINESS SEGMENTS QUARTERLY MEUR Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ 2007 2007 2007 2007 2006 2006 2006 2006
Sales 16.8 16.5 17.4 19.2 24.4 20.5 20.9 16.3 Fireplaces Business 14.4 13.9 14.7 16.7 21.5 17.8 18.1 14.6 Natural Stone Products Business 1.7 1.7 2.1 1.9 1.8 1.7 2.1 1.7 Other Operations 0.7 0.9 0.6 0.6 1.1 1.0 0.7
Operating profit -0.6 0.3 0.6 0.7 2.4 2.4 1.7 1.7 Fireplaces Business 0.8 0.8 1.4 1.4 3.2 2.8 2.7 2.3 Natural Stone Products Business 0.0 0.1 0.2 0.1 0.0 0.2 0.0 0.1 Other Operations -1.4 -0.6 -1.0 -0.8 -0.8 -0.6 -1.0 -0.7
This financial statement bulletin is prepared in accordance with IAS 34 Interim Financial Reporting. Tulikivi has applied same accounting principles and calculation methods as for the consolidated financial statements for 2006 with the exception to the following new or revised standards adopted as from January 1, 2007: – IFRS 7 Financial Instruments: Disclosures – Amendment of IAS 1, Presentation of Financial Statements – Capital disclosures The adoption of these standards mainly affects the notes to consolidated financial statements. The interpretations effective as from January 1,2007 did not have an impact on the consolidated financial statements.
The Group applies the unit of production method for the depreciation of new quarries instead of the previously used straight-line depreciation method. The change in the depreciation method decreased the depreciation in 2007 by EUR 0.4 million compared to the depreciation method applied previously. Other minor changes in accounting methods applied resulted in a decrease in profit of EUR 0.2 million.
The key performance ratios and share ratios are calculated using the same methods as for the consolidated financial statements for 2006. The formulas can be found in the 2006 annual report, page 64.
Use of estimates When preparing the financial statements certain assumptions and estimates regarding future have to be made. The outcomes might differ from these assumptions and estimates. In addition judgements have to be made in the application of accounting principles. The estimates affect the amounts of assets and liabilities at the balance sheet date, reporting of contingent liabilities and income and expenses for the reporting period. Estimates are used i.a. when determining realisability of certain assets, useful lives of property, plant and equipment and intangible assets, income taxes, provisions and impairment of goodwill.
Business combinations
On the basis of additional information gained during the reporting period, the accounting for the acquisition of the shares in Kermansavi Oy in 2006, was adjusted by increasing environmental provisions by EUR 0.2 million, reversing an unjustified revaluation of EUR 0.05 million and increasing the amount of deferred tax liabilities recognized with EUR 0.1 million. Due to these adjustments, the related goodwill increased with EUR 0.3 million, and amounted to EUR 3.6 million on December 31, 2007. The comparative information for 2006 has been restated.
Income taxes MEUR 1-12/07 1-12/06 Taxes for the current and previous reporting periods -1.1 2.1 Deferred taxes 1.3 0 Total 0.2 2.1
Collaterals given MEUR 12/2007 12/2006 Mortages granted and collaterals pledged 26.3 29.8 Derivatives Interest rate swaps Nominal value 7.4 8.3 Fair value 0.1 0.1 The fair value of derivatives is the gain or loss for closing the contract based on market rates at the balance sheet date.
Environmental and warranty provisions MEUR Environ- Warranty mental provisions provisions Provisions, Jan. 1, 2007 0.6 0.4 Increase in provisions 0.1 0.4 Effect of discounting -0.3 Used provisions 0 -0.3 Provisions, Dec. 31, 2007 0.4 0.5
Environmental and warranty provisions are included in non-current provisions. In 2007 a restructuring provision of EUR 0.7 million has been recognised and it is included in current provisions.
The contingent liabilities include contingent part of Kivia Oy’s purchase consideration (0.3 MEUR) that has been recognised in other non- current liabilities in the consolidated financial statements. In addition the Group has landscaping obligations in accordance with the Mining Act and environmental legislation, which have to be fulfilled during the related operations and when closing the quarries. The cost for monitoring the environment after the closure of the quarries and the part of the landscaping obligation that can be reliably measured have been taken into account when recognising the environmental provisions. The covering works for banking areas of the quarries is based on the long-term quarrying plan according to which the surface material of new quarries opened is utilised. No provision is recognised for this covering, as this landscaping work is not expected to increase the costs of normal quarrying operations. 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 Dec.31, 2007 37 143 970 100.0 100.0 6 314 475
There have been no changes in Tulikivi Corporation´s share capital. According to the articles of association for the dividend paid for Series A shares shall be 0.0017 EUR higher than the dividend paid on Series K shares. Each Series K shares confers 10 votes at a general meeting, while each Series A shares confers one vote. The Series A share is listed on the OMX Nordic Exchange in Helsinki and its trading code is TULAV.
Rate development and exchange of Series A shares During the reporting period, 5.4 million shares were traded, with the value of share turnover being EUR 14.5 million. The highest rating for the share was EUR 3.75 and the lowest was EUR 1.53. The closing rate for the period was EUR 1.56.
Related party transactions
12/2007 12/2006 Sales of goods and services -sales of goods and services to associated companies 2 5
Purchases of goods and services -purchases of goods and services from associated companies 86 171
Transactions with key management – leases from related parties 105 103 – leases to related parties 0 2
Transactions with other related parties Tulikivi Corporation is a founder member of the Finnish Stone Research Foundation. In 2007 the company has donated EUR 70 thousand (in 2006 EUR 50 thousand) for the 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 124 462 in 2007 (EUR 123 640 in 2006). The rent corresponds with the market rents. The sales of services to foundation were EUR 33 551 in 2007 (EUR 37 740 in 2006). The foundation did not provide services to the Group during the reporting period (EUR 30 000 year 2006).
Largest shareholders on December 31, 2007 Name of shareholder Shares Proportion of total
Vauhkonen Reijo 4 140 179 24.2 % Vauhkonen Heikki 2 999 739 24.1 % Elo Eliisa 2 957 020 5.9 % Virtaala Matti 2 417 152 12.6 % Mutual Pension Insurance Company Ilmarinen 1 902 380 1.5 % Mutanen Susanna 1 643 800 7.2 % Vauhkonen Mikko 797 700 3.6 % Paatero Ilkka 718 430 0.6 % Nuutinen Tarja 674 540 3.5 % Investment Fund Phoebus 608 140 0.5 % Other shareholders 18 284 890 16.3 %
The Financial Statements have not yet been audited.
The companies included in the Group are the parent company Tulikivi Corporation and the subsidiaries Kermansavi Oy (merged with the parent company as at December 31, 2007), Kivia Oy, AWL- Marmori Oy, Tulikivi U.S. Inc. and OOO Tulikivi. Group companies include also Uuni Vertriebs GmbH (former Tulikivi Vertriebs GmbH) and The New Alberene Stone Company, Inc., which are 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 and Leppävirran Matkailukeskus Oy.
Board of Directors Matti Virtaala, Chairman of the Board
Distribution: OMX Nordic Exchange in Helsinki 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
The codetermination negotiations initiated at the Tulikivi Group in the autumn were concluded today. The negotiations were carried out to downsize personnel in line with prevailing market demand.
The negotiations settled on 67 redundancies, 10 of them clerical employees. In addition, 26 employees will be laid off for the time being. In relative terms, the most substantial personnel cuts were carried out in the lining stone and utility ceramics businesses.
The manufacture of the company’s soapstone fireplaces will be centralized at the Juuka plants. Natural attrition and the ending of temporary contracts will further decrease the company’s personnel count to about 600 (765 employees on 31 December 2006).
The Group’s sales in 2007 amounted to about EUR 70 million (EUR 82.1 million in 2006). The total cost of the reorganization of functions is about EUR 1 million, which will be booked as a provision in the 2007 financial statements. The company’s result for 2007 will be weak. The financial statement bulletin will be published on 6 February 2008.
Additional information: Tulikivi Corporation, 83900 Juuka, tel. +358 207 636 000, www.tulikivi.com – Managing Director Heikki Vauhkonen
Tulikivi Corporation´s and Kermansavi Oy’s Boards of Directors decided on June 29, 2007 to merge Kermansavi Oy into Tulikivi Corporation by absorption. The implementation of the merger was registered on December 31, 2007. The merger aims to clarify the Group structure.
Heikki Vauhkonen, Managing Director
Additional information: Tulikivi Corporation, 83900 Juuka, tel. +358-207-636 000, www.tulikivi.com – Managing Director Heikki Vauhkonen
Tulikivi Corporation´s Financial Statements Release for 2007 will be published on February 6, 2008. Annual Report will come out week 12. Annual General meeting will be held on April 17, 2008. The following interim reports will be published in 2008: - January - March April 17 - January - June July 22 - January - September Oct, 21 The releases are published in Finnish and English. After publication, they can be read on the company´s Internet site, www.tulikivi.com. TULIKIVI CORPORATION Heikki Vauhkonen Managing Director
Distribution
OMX Nordic Exchange in Helsinki Central Media
Tulikivi Group expands co-determination negotiations today to cut the number of personnel by 70 in the Group. The Group’s operations will be adjusted in line with demand and profitability targets.
The need to downsize the personnel will affect both workers and clerical employees throughout the Group. There is particular need to reduce the number of employees in the utility ceramics business and lining stone business. The negotiations concern Tulikivi Group’s operations in Juuka, Suomussalmi, Espoo, Helsinki, Taivassalo, Kuhmo and Heinävesi.
A listed family company, Tulikivi Corporation and its subsidiaries form the Tulikivi Group, the world’s largest manufacturer of heat- retaining fireplaces. The Group is known for its Tulikivi soapstone fireplaces and natural stone products as well as its Kermansavi tiled stoves and utility ceramics. The Group’s revenue amounts to over EUR 80 million, about half of which is accounted for by exports. The Group owns seven production plants and employs about 700 people. www.tulikivi.com
For additional information, contact: Tulikivi Corporation´s Managing Director Heikki Vauhkonen, tel. +358 207 636 555
– The Tulikivi Group’s sales were EUR 53.1 (57.7) million. – The Group’s profit before taxes was EUR 1.1 (5.4) million. – The order book amounted to EUR 7.9 (12.4) million at the end of the period. – Demand for fireplace products was lower than expected, especially in Germany.
Sales and result The Group’s sales amounted to EUR 53.1 million (EUR 57.7 million in the January-September period of 2006). The Fireplaces Business posted sales of EUR 45.3 (50.5) million, the Natural Stone Products Business sales of EUR 5.7 (5.5) million and Other Operations sales of EUR 2.1 (1.7) million. The comparable sales of the Fireplaces Business – that is, exclusive of ceramic fireplace sales in Q1 – amounted to EUR 41.6 million.
The share of sales accounted for by Finland was EUR 28.8 (28.6) million, representing 54.3 (49.6) per cent. Exports accounted for EUR 24.3 (29.1) million. The largest countries for exports were Germany and France.
The Group’s operating profit was EUR 1.6 (5.8) million. The Fireplaces Business had an operating profit of EUR 3.6 (7.8) million, the Natural Stone Products Business an operating profit of EUR 0.4 (0.3) million and Other Operations an operating loss of EUR 2.4 (2.3) million.
Consolidated profit before taxes was EUR 1.1 (5.4) million. Earnings per share amounted to EUR 0.02 (0.11).
Demand for fireplace products has been lower than expected in Tulikivi’s main market areas. The shortfall has primarily occurred in exports, although demand in Finland was also down on the previous year. A dramatic fall in demand for fireplaces in Germany impacted on both fireplace and lining stone exports. The uncertain operations of the new plant have also caused additional costs.
Financing and investments The Group’s financial position is good. The Group’s working capital increased by EUR 5.4 million during the review period, mainly due to a decline in trade payables and accrued liabilities. Due to growth in working capital, cash flow from operating activities before investments became negative, amounting to EUR -1.1 (6.1) million. The Group’s net financial expenses totaled EUR 0.5 (0.4) million.
The equity ratio was 42.1 per cent (44.9 per cent at September 30, 2006). The ratio of interest-bearing net debt to shareholders’ equity, or gearing, was 76.9 (56.8) per cent. Current ratio was 2.0 (1.8). Shareholders’ equity per share amounted to EUR 0.76 (0.78).
The Group’s investments totaled EUR 4.2 (19.5) million during the report period. The major investments during the review period were earmarked for production and quarrying machines, opening new quarries and the distribution channel overhaul.
Annual General Meeting Dividend payout Tulikivi Corporation’s Annual General Meeting held on April 13, 2007, resolved to pay a dividend of EUR 0.090 on Series A shares and EUR 0.088 on Series K shares.
Administrative bodies Bishop Ambrosius, Mr. Juhani Erma, Mr. Eero Makkonen, Mrs. Maarit Toivanen-Koivisto, Mr. Heikki Vauhkonen, Mr. Reijo Vauhkonen and Mr. Matti Virtaala were elected as members of the Board of Directors of the parent company and its business subsidiaries. From amongst its members, the Board elected Mr. Matti Virtaala as chairman and Mr. Heikki Vauhkonen as vice chairman. The firm of independent public accountants KPMG Oy Ab of Helsinki was elected as the auditor.
Authorization to acquire the company’s own shares The Annual General Meeting authorized the Board of Directors to acquire the company’s own shares in accordance with the Board’s proposal. A maximum of 2 760 397 Series A shares in the company and 954 000 Series K shares in the company will be bought back.
Authorization to decide on share issues and the conveyance of the company’s own shares in the possession of the company and the granting of special rights that give entitlement to shares as set forth in Chapter 10, Article 1 of the Companies Act The Annual General Meeting authorized the Board of Directors to decide on issuing new shares and the conveyance of own shares in the company’s possession. New shares can be issued or own shares held by the company conveyed as follows: a maximum of 5 520 794 Series A shares and 1 908 000 Series K shares.
Amendments to the Articles of Association The company’s Articles of Association were amended to conform to the new Companies Act.
Managing director Mr. Heikki Vauhkonen was appointed as Tulikivi Corporation’s managing director as of May 28, 2007. Mr. Juha Sivonen was appointed as the head of the Fireplaces Business, also effective as of May 28, 2007.
Merger of Kermansavi Oy into its parent company The Boards of Directors of Tulikivi Corporation and Kermansavi Oy decided to merge Kermansavi Oy into Tulikivi Corporation by means of an absorption merger, as set out in the merger plan signed on June 29, 2007. The merger plan was registered in the Trade Register on July 27, 2007. The merger aims to clarify the Group structure. The planned registration date for consummation of the merger is December 31, 2007.
Risks and uncertainties The Group’s risks are divided into strategic and operational risks,damage, casualty and loss risks, and financial risks. For an in-depth report on risks and their management, see the 2006 Annual Report. The risks have not changed significantly after the publication of the Annual Report.
The Group’s near-term risks and uncertainties are related to trends in demand in the main market areas and also on the adaptation of costs to match product sales.
Outlook for the future Total demand for fireplace products in Tulikivi’s main market areas is lower than last year. Sales in Finland have improved with the increased efficiency of the new distribution channel. The Group’s sales are estimated to remain about 10 per cent below those of the previous year. Co-determination negotiations have been held at the Group and the cost level will be adjusted to fit current volumes. Full-year earnings are forecast to be satisfactory at most.
Changes in segment reporting As of January 1, 2007, the Group’s business segments are the Fireplaces Business, Natural Stone Products Business and Other Operations. The Fireplaces Business includes soapstone and ceramic fireplaces, and also stone lining for heaters. The Natural Stone Products Business includes interior decoration stone products for households and stone deliveries to construction sites. Other Operations includes expenses that have not been allocated to the Group’s business functions, tax and financial expenses, as well as sales of ceramic utensils and the expenses of this business.
CONSOLIDATED INCOME STATEMENT MEUR 1-9/ 1-9/Change, 1-12/ 7-9/ 7-9/Change 2007 2006 % 2006 2007 2006%
Sales 53.1 57.7 -8.0 82.1 16.5 20.5 -19.7 Other operating income 0.4 0.5 0.6 0.2 0.2 Increase/decrease in inventories in finished goods and in work in progress 2.2 -0.3 -0.3 0.0 -0.2 Production for own use 0.9 0.7 1.0 0.4 0.2 Raw materials and consumables 10.8 9.8 14.4 3.4 3.5 External services 8.2 7.2 10.5 3.1 3.0 Personnel expenses 20.1 20.2 28.7 5.6 6.6 Depreciation and amortisation 4.5 3.7 5.2 1.5 1.4 Other operating expenses 11.4 11.9 16.3 3.2 4.1
Operating profit 1.6 5.8 -71.5 8.2 0.3 2.3 -85.8 Percentage of sales 3.1 10.0 10.0 2.0 11.3 Finance costs -net -0.5 -0.4 -0.4 -0.3 -0.2 Share of the profit of associated company 0.0 0.0 0.0 0.0 0.0
Profit before income Tax 1.1 5.4 -79.9 7.8 0.0 2.1 -99.6 Percentage of sales 2.0 9.3 9.5 0.0 10.3 Income tax expenses -0.3 1.4 -2.1 0.0 0.5
Profit for the period 0.8 4.0 -80.5 5.7 0.0 1.6 -99.0
Earnings per share attributable to the equity holders of the parent company, EUR basic and diluted 0.02 0.11 0.16
CONSOLIDATED BALANCE SHEET MEUR 9/07 9/06 12/06 ASSETS Non-current assets Property, plant and equipment Land 1.1 0.9 0.9 Buildings 8.7 9.0 9.0 Machinery and equipment 12.9 11.9 13.7 Other tangible assets 1.4 0.7 1.2 Prepayments 0.2 1.9 0.1 Intangible assets Goodwill 4.3 3.9 4.0 Other intangible assets 10.8 10.3 10.5 Investment properties 0.2 0.2 0.2 Available-for-sale investments 0.1 0.1 0.1 Receivables Deferred tax assets 0.6 0.5 0.5 Total non-current assets 40.3 39.4 40.2
Current assets Inventories 12.9 10.6 10.6 Trade receivables 7.9 10.7 8.5 Current income tax receivables 0.5 0.0 Other receivables 2.0 1.5 2.0 Cash and cash equivalents 3.2 2.4 4.9 Total current assets 26.5 25.2 26.0 Total assets 66.8 64.6 66.2
EQUITY AND LIABILITIES Equity 6.3 6.3 6.3 Share capital 7.4 7.4 7.4 Retained earnings 14.4 15.3 17.0 Total equity 28.1 29.0 30.7 Non-current liabilities Deferred income tax liabilities 3.0 2.8 3.0 Provisions 0.8 0.4 0.6 Interest-bearing debt 21.0 17.9 14.7 Other debt 0.4 0.4 0.4 Total non-current liabilities 25.2 21.5 18.7 Current liabilities Trade and other payables 9.7 12.9 13.7 Current income tax liabilities 0.0 0.3 0.4 Short-term interest-bearing debt 3.8 0.9 2.7 Total current liabilities 13.5 14.1 16.8 Total liabilities 38.7 35.6 35.5 Total equity and liabilities 66.8 64.6 66.2
CONSOLIDATED CASH FLOW STATEMENT MEUR 1-9/ 1-9/ 1-12/ 2007 2006 2006 Cash flows from operating activities Profit for the period 0.8 4.0 5.7
Adjustments: Non-cash transactions 4.4 3.6 5.1 Interest expenses and income and taxes 0.8 1.8 2.5 Change in working capital -5.4 -1.8 0.8 Interest paid and received and taxes paid -1.7 -1.4 -2.1 Net cash flow from operating activities -1.1 6.1 12.0
Cash flows from investing activities Acquistion of subsidiaries less cash and cash equivalents at the time of acquistion -10.6 -11.0 Investment in property, plant and equipment and intangible assets -4.7 -8.2 -10.1 Grants received for investments and sales of property, plant and equipment 0.2 0.7 1.0 Net cash flow from investing activities -4.5 -18.1 -20.1
Cash flows from financing activities Proceed from borrowings 8.9 15.4 15.3 Repayment of borrowings -1.6 -2.5 -3.8 Dividends paid -3.4 -2.6 -2.6 Net cash flow from financing activities 3.9 10.3 8.9
Change in cash and cash equivalents -1.7 -1.7 0.8
Cash and cash equivalents at beginning of period 4.9 4.1 4.1 Cash and cash equivalents at end of period 3.2 2.4 4.9
STATEMENT OF CHANGES IN EQUITY MEUR Share Share Trans- Retained Total capital prenium lation earnings fund diff.
Equity 1 January 2007 6.3 7.4 0.0 17.0 30.7 Translation differences 0.0 0.0 Contributions -0.1 -0.1 Profit for the period 0.8 0.8 Dividends paid -3.3 -3.3 Equity 30 Sept, 2007 6.3 7.4 0.0 14.4 28.1
Equity 1 January 2006 6.2 5.4 0.0 13.9 25.5 Translation differences 0.0 0.0 Contributions -0.1 -0.1 Profit for the period 4.0 4.0 Dividends paid -2.5 -2.5 Share issue 0.1 2.0 2.1 Equity 30 Sept, 2006 6.3 7.4 0.0 15.3 29.0
BUSINESS SEGMENTS 1-9/ 1-9/ 1-12/ MEUR 2007 2006 2006 Sales 53.1 57.7 82.1 Fireplaces business 45.3 50.5 72.0 Natural stone products business 5.7 5.5 7.3 Other operations 2.1 1.7 2.8
Operating profit 1.6 5.8 8.2 Fireplaces business 3.6 7.8 11.0 Natural stone products business 0.4 0.3 0.3 Other operations -2.4 -2.3 -3.1
BUSINESS SEGMENTS QUARTERLY MEUR Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ 2007 2007 2007 2006 2006 2006 2006
Sales 16.5 17.4 19.2 24.4 20.5 20.9 16.3 Fireplaces business 13.9 14.7 16.7 21.5 17.8 18.1 14.6 Natural stone products business 1.7 2.1 1.9 1.8 1.7 2.1 1.7 Other operations 0.9 0.6 0.6 1.1 1.0 0.7
Operating profit 0.3 0.6 0.7 2.4 2.4 1.7 1.7 Fireplaces business 0.8 1.4 1.4 3.2 2.8 2.7 2.3 Natural stone products business 0.1 0.2 0.1 0.0 0.2 0.0 0.1 Other operations -0.6 -1.0 -0.8 -0.8 -0.6 -1.0 -0.7
KEY FINANCIAL RATIOS AND SHARE RATIOS 9/07 9/06 12/2006 Outstanding orders (30 September), MEUR 7.9 12.4 10.4 Gross investment, MEUR 4.2 19.5 24.1 Gross investment, % of sales 8.0 33.8 29.4 Average number of staff 713 632 664
Earnings per share, EUR 0.02 0.11 0.16 Equity per share, EUR 0.76 0.78 0.83 Equity ratio, % 42.1 44.9 46.4 Gearing, % 76.9 56.8 49.0 Current ratio 2.0 1.8 1.6
Number of shares average 37143970 36667648 36784755 Number of shares 30 September 37143970 37143970 37143970
NOTES TO THE INTERIM REPORT
This interim report has been prepared in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. In preparing of this interim report, Tulikivi has applied same accounting policies as in the 2006 financial statements, with the exception of the following new/amended standards that the group has adopted as from January 1, 2007: – IFRIC 11, IFRS 2 Group and Treasury Share Transactions – IFRIC 10, Interim Financial Reporting and Impairment – IFRS 7 Financial Instruments: Disclosures – IAS 1 (Amendment) Presentation of Financial Statements: Capital Disclosures
The changes have no material effect on Tulikivi’s interim report.
The key figures presented in the Interim Report have been calculated using the same formulas as the latest financial statements. The formulas can be found on page 64 of the 2006 Annual Report.
Business Combinations
On the basis of additional information gained during the review period, the accounting for the acquisition of the shares in Kermansavi Oy in 2006, was adjusted by adding environmental provisions of EUR 0.2 million to provisions and supplementing the amount of deferred tax liabilities recognized with EUR 0.1 million. Due to these changes, goodwill grew by about EUR 0.3 million, and amounted to EUR 3.6 million on September 30, 2007.
Income taxes 1-9/07 1-9/06 1-12/06
Taxes for the current and previous financial periods 0.4 1.5 2.1 Deferred taxes -0.1 -0.1 0.0 Total 0.3 1.4 2.1
Collateral and securities given And other commitments MEUR 9/2007 9/2006 12/ 2006 Loans from credit institutions and other non-current liabilities, secured by mortgages and pledges 21.8 19.2 17.4 Mortgages and pledges given 25.8 28.3 27.7 Other mortgages and pledges given by the company on its own behalf 2.2 1.7 2.1 Derivatives Interest rate swaps; nominal value 8.3 8.3 8.3 Interest rate swaps; fair value 0.1 0.0 0.1
Environmental and warranty provisions Environmental Warranty EUR million provisions provisions Provisions, Jan. 1, 2007 0.2 0.4 Increase in provisions 0.2 0.0 Provisions, Sept. 30, 2007 0.4 0.4
Provisions and obligations are itemized in the notes to the 2006 consolidated financial statements under notes 25. Provisions and 33. Other contingent liabilities.
Share capital by share series Number % of % of Share, of 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 37 143 970 100.0 100.0 6 314 475
Rate development and exchange of Series A shares Tulikivi Corporation´s Series A share is quoted on the OMX Nordic Exchange in Helsinki in the Nordic List´s Small Cap category. During the report period, 3 691 753 shares were traded, with the value of share turnover being EUR 11.1 million. The highest rating for the share was EUR 3.75 and the lowest was EUR 2.33. The closing rate for the period was EUR 2.34.
Related party transactions 9/2007 9/2006 Sales of goods and services -sales of goods and services to associated companies 2 3
Purchases of goods and services -purchases of goods and services from associated companies 36 103
Transactions with key management – leases from related parties 79 78 – leases to related parties 0 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 92 730. 42 in January – September 2007 (EUR 92 730.42 in January –September 2006). The rent corresponds to the market level of rents. The service charges by Tulikivi Corporation were EUR 28 187.56 in January – September 2007 (EUR 34 077.19 in January – September 2006). The company has EUR 15 995.85 in accounts receivables from the Foundation at September 30, 2007 (EUR 426.05 at September 30, 2006).
Largest shareholders on 30 September 2007 Name of shareholder Shares Proportion of total vote Vauhkonen Reijo 4 152 179 24.2 % Vauhkonen Heikki 2 999 739 24.1 % Elo Eliisa 2 957 020 5.9 % Virtaala Matti 2 417 152 12.6 % Mutual Pension Insurance Company Ilmarinen 1 902 380 1.5 % Mutanen Susanna 1 643 800 7.2 % Vauhkonen Mikko 797 700 3.6 % Paatero Ilkka 718 430 0.6 % Nuutinen Tarja 674 540 3.5 % Investment Fund Phoebus 560 440 0.5 % Other shareholders 18 320 590 16.3 %
The interim report has not been audited.
The companies included in the Group are the parent company Tulikivi Corporation and subsidiaries Kermansavi Oy, Kivia Oy, AWL- Marmori Oy, Tulikivi U.S. Inc. and OOO Tulikivi. Group companies include also Uuni Vertriebs GmbH (former Tulikivi Vertriebs GmbH) and The New Alberene Stone Company, Inc., which are dormant. Parent company has a fixed place of business in Germany, Tulikivi Oyj Niederlassung Deutschland. The Group has associated companies Stone Pole Oy and Leppävirran Matkailukeskus Oy.
Board of directors Matti Virtaala, Chairman of the Board
Tulikivi Corporation has concluded the codetermination negotiations that were carried out in order to balance out fluctuations in demand affecting the company’s soapstone production. The negotiations concerned Tulikivi Corporation’s soapstone production and quarrying.
The negotiations settled on layoffs at Tulikivi Corporation’s plants and quarry in Juuka. The layoffs will last 2-4 weeks and are scheduled for the period from October to January.
The primary cause of the variations in demand that led to the codetermination negotiations is the sedateness of the German market, which is evident in the decline in exports of both fireplaces and lining stones.
A listed family company, Tulikivi Corporation and its subsidiaries form the Tulikivi Group, the world’s largest manufacturer of heat-retaining fireplaces. The Group is known for its Tulikivi soapstone fireplaces and natural stone products as well as its Kermansavi tiled stoves and utility ceramics. The Group’s revenue amounts to over EUR 80 million, about half of which is accounted for by exports. The Group owns seven production plants and employs more than 700 people.
Distribution: Helsinki Stock Exchange and Central Media www.tulikivi.com
Additional information: Managing Director Heikki Vauhkonen, tel. +358 207 636 555