Tulikivi Corporation FINANCIAL STATEMENT STOCK EXCHANGE RELEASE
FIN-83900 Juuka February 5 2003 at 8.30 a.m. 1(5)

In 2002, Tulikivi Group’s net sales amounted to EUR 52.5 million
(EUR 58.7 million in 2001). The Group’s profit before
extraordinary items was EUR 3.3 (6.5) million. The Board of
Directors’ dividend distribution proposal to the Annual General
Meeting is a dividend of EUR 1.05 per share for A-shares and EUR
1.00 per share for K-shares.

Net sales
The Group’s net sales amounted to EUR 52.5 million (EUR 58.7
million in 2001). The decrease in net sales was mainly due to the
decline in exports to Germany and the architectural stone
business.
The demand for heaters picked up during the last quarter of 2002,
but on an annual level remained lower than during the previous
financial year. The net sales of the Group’s heater business
amounted to EUR 42.3 (46.9) million. Growth areas included France,
the United States, Russia and Estonia. The net sales of Tulikivi’s
fireplace lining stone business grew in comparison to the previous
financial year.
The net sales of the Group’s architectural stone business amounted
to EUR 10.2 (11.8) million.
Exports accounted for EUR 26.3 (31.9) million, or 50.1 (54.3)
percent of the Group’s net sales. The most important export
countries were Germany, Sweden and Denmark. Domestic net sales
amounted to EUR 26.2 (26.8) million.

Financial result
The Group’s profit before extraordinary items was EUR 3.3 (6.5)
million.
The profit of the Group’s heater business operations amounted to
EUR 3.4 (6.3) million.
The financial result of Tulikivi’s architectural stone business
amounted to EUR -0.1 (0.2) million.
Return on capital employed stood at 10.9 (22.6) percent. Earnings
per share amounted to EUR 1.35 (2.56).

Cash flow and financing
The Group’s financial position remained good. The cash flow from
operating activities before investments was EUR 5.3 (6.5) million.
Own capital investment ratio was 1.5 (1.0). The current ratio was
2.3 (1.6), while the solvency ratio was 61.5 (63.5) percent. The
ratio between net debt and shareholders’ equity, or gearing, was
3.9 (2.5) percent. Shareholders´ equity per share amounted to EUR
14.25 (14.75).

2(5)
Investments and development activities
The Group’s gross investments amounted to EUR 3.9 (6.4) million.
The focus of the development activities was on designing the new
product range and the new light-weight fireplace models. The
Group’s development expenses amounted to EUR 1,3(1.4) million. The
most important investments consisted of investments in production
machinery, stone supply research and opening of the quarries.

Repurchase and disposal of company´s own shares
By virtue of the authorization given to the board of directors by
the Annual General Meeting, Tulikivi Corporation acquired 10,028
company A-shares in 2002. The total value of the transactions
amounted to EUR 0.2 million.
Tulikivi Corporation disposed of the aforementioned shares as well
as 21,553 A-shares acquired in 2000, in other words a total of
31,581 shares, as partial payment of the purchase price of the
business acquisition made in 2000. The value of these shares at
the time of the disposal was EUR 0.6 million. The combined nominal
value of the shares amounted to EUR 0.1 million. Their relative
share of the company’s share capital was 1.7 percent and their
share of the combined voting rights of all the company´s shares
was 0.5 percent. After the transaction, the company no longer
holds its own shares.

Personnel
During the reporting period, the Group employed an average of 578
(558) persons. At the close of the reporting period, the Group’s
personnel numbered 562 (614) persons. Of these employees, 467
(507) worked in the heater business and 95 (107) in the
architectural stone business.

Board of Directors, Managing Director and Auditors
At the Annual General Meeting of the Tulikivi Corporation, held on
4 April 2002, Bishop Ambrosius, Mr. Juhani Erma, Mr. Eero
Makkonen, Mr. Aimo Paukkonen, Mr. Heikki Vauhkonen, Mr. Reijo
Vauhkonen and Mr. Matti Virtaala were elected to serve on the
Board of Directors. The Board of Directors appointed Mr. Reijo
Vauhkonen as its Chairman and Mr. Matti Virtaala as its Vice-
Chairman.
The Managing Director of Tulikivi Corporation is Mr. Juha Sivonen.
The auditors are PricewaterhouseCoopers Oy, Authorized Public
Accountants.

Quotation and trading of the A-share
In 2002, a total of 262,560 Tulikivi Corporation´s A-shares were
traded on the Helsinki Exchanges to a combined exchange value of
EUR 5.4 million.

3(5)
Dividend
The Board of Directors will propose to the Annual General Meeting
to be convened on 11 April 2003 that a dividend of EUR 1.05 per
share for A-series shares and EUR 1.00 per share for K-series
shares be paid. The proposed dividend represents an effective
dividend yield of 5.3 percent for A-series shares.

Changes in the Group structure during 2003
The Tulikivi Group’s subsidiaries which are involved in the
Group’s heater business operations, Mittakivi Oy, Kiantastone Oy
and Tulipuu Oy, were merged with the parent company, Tulikivi
Corporation, effective 2 January 2003.
In its meeting held on 5 February 2003, the Board of Directors of
Tulikivi Corporation decided that Tulikivi Rakennuskivet Oy, the
subsidiary company involved in the architectural stone business,
will be merged with the parent company Tulikivi Corporation. The
objective of this merger is to gain synergy advantages from the
heater business and architectural stone business, and to improve
customer service.

Outlook for the future
We expect the domestic demand within the heater business to grow.
The demand situation within the European export markets is still
uncertain. We expect the demand within the architectural stone
business to remain stable.

CONSOLIDATED INCOME STATEMENT
Me
1-12/02 1-12/01 Change, %

Net sales 52.5 58.7 -10.6
Operating profit 3.2 6.6 -51.5
% of net sales 6.1 11.2

Profit before extraordinary items 3.3 6.5 -49.2
% of net sales 6.3 11.1

Profit before taxes 3.3 6.5 -49.2
Profit for the year 2.3 4.6 -50.0

4(5)
CONSOLIDATED BALANCE SHEET

Me 12/02 12/01
Assets
Fixed assets and other non-current
investments
Intangible assets 4.1 4.7
Tangible assets 17.0 17.7
Investments
Own shares – 0.3
Other investments 0.1 0.1
Current assets
Inventories 6.3 5.7
Receivables 8.4 10.0
Cash in hand and at banks 7.2 5.2

Liabilities and shareholders´equity
Shareholders´equity
Capital stock 6.2 6.2
Other shareholders´ equity 19.8 20.7
Non-current liabilities 7.4 3.9
Current liabilities 9.7 12.9
Total assets/liabilities and
Shareholders´equity 43.1 43.7

KEY RATIOS DESCRIBING ECONOMIC DEVELOPMENT
AND KEY INDICATORS PER SHARE

12/02 12/01
Order stock (31.12.), Me 3.9 6.4
Gross investments, Me 3.9 6.7
Investments/net sales, % 7.4 11.4
Average number of staff 578 558
Number of staff at the end of period 562 614
Earnings per share, euro 1.35 2.56
Equity per share, euro 14.25 14.75
Solvency ratio, % 61.5 63.5
Return on capital, % 10.9 22.6
Gearing, % 3.9 2.5
Current ratio 2.3 1.6
Average number of shares 1797017 1788414
Number of outstanding shares
on December 31 1821277 1799724

5(5)

GIVEN GUARANTEES, CONTINGENT LIABILITIES
AND OTHER COMMITMENTS
Me 12/02 12/01
Loans from credit institutions and
other non-current liabilities
for which mortgages have been given 5.3 4.2
Given mortgages 6.1 6.6
Other mortgages and pledges 1.1 0.7
Mortgages and pledges given for
third parties 0.1
The significance of off-balance sheet financial instruments is
minor.
Environmental commitments: On the basis of mining act and
environmental legislation Tulikivi Corporation has landscaping
commitments which will have to be fullfilled at the time of
closing the quarry. As the amount of the commitments can not yet
be reliably estimated they have not been accounted for in the
financial statements.

The audit has not yet been performed.

The companies included in the Group are the parent company
Tulikivi Corporation, Mittakivi Oy, Kiantastone Oy, Tulipuu Oy,
Tulikivi U.S., Inc., Tulikivi Rakennuskivet Oy and its subsidiary
AWL Marmori Oy. Group companies include also dormant companies
Tulikivi Vertriebs GmbH and The New Alberene Stone Company, Inc.

TULIKIVI CORPORATION

Board of Directors

Distribution: The Helsinki Stock Exchange
Central Media

Additional information: Tulikivi Oyj, FIN-83900 Juuka, tel. +358-
13-681 111,www.tulikivi.com
– Chairman of the Board Reijo Vauhkonen
– Managing Director Juha Sivonen