Interim Report

Interim Report 01-03/2003


Net sales of Tulikivi Group during the reporting period amounted
to EUR 11.9 million (EUR 12.7 million in January-March 2002).
Profit before extraordinary items and taxes totaled EUR 0.3 (0.8)
million. Earnings per share amounted to EUR 0.11 (0.34), and
shareholders´equity per share to EUR 13.32 (13.60).

Net sales and profit

During the reporting period, Tulikivi Group net sales amounted to
EUR 11.9 (12.7) million. The heater business net sales were EUR
9.7 (10.1) million and building stone business net sales amounted
to EUR 2.2 (2.6) million. The proportion of export of the net
sales was EUR 5.0 (7.1) million, i.e. 41.7 (55.8)per cent. The
domestic net sales were EUR 6.9 (5.6) million.

The profit before extraordinary items was EUR 0.3 (0.8) million.
The profit before extraordinary items for the Group’s heater
business totaled EUR 0.5 (0.6) million. The result of the Group’s
heater business improved in comparison with the previous year. The
result of the Group´s heater business in 2002 included a gain on
the sale of shares of EUR 0.2 million. The result of the Group’s
architectural stone business totaled EUR 0.2 (0.2) million.
Earnings per share amounted to EUR 0.11 (0.34). As income taxes
have been reported taxes relating to the group companies´ profit
for the reporting period.

Financing and investments

The Group’s financing position is good. Cash flow from operating
activities before investments amounted to EUR 0.6 (0.5) million.
The solvency ratio was 55.6 (56.1 per cent at the end of March
2002). The current ratio was 1.9 (1.3). The shareholders´equity
amounted to EUR 13.32 (13.60). The dividend to be distributed
from the previous year has been deducted from the shareholders’

The Group’s investments in fixed assets amounted to EUR 0.4 (1.7)
million. The investments consisted mainly of replacement

Price development and trade volume of the A share

During the current reporting period a total of 31,816 Tulikivi
Corporation A shares were traded at the Helsinki Stock Exchange,
representing EUR 0.6 million. The highest trading price of the
share was EUR 22.30 and the lowest EUR 17.49. The closing rate of
the reporting period was EUR 18.90.

Decisions reached by the annual general meeting of Tulikivi

Dividend distribution and administrative bodies

The annual general meeting of Tulikivi Corporation was held on 11
April 2003. The annual general meeting decided to follow the Board
of Directors’ proposal for paying dividend; EUR 1.05 per A share
and EUR 1.00 per K share. The total amount of dividend payable is
EUR 1.9 million.

The following members were elected to the Board of Directors of
the parent company and operating subsidiaries: bishop Ambrosius,
Juhani Erma, Eero Makkonen, Aimo Paukkonen, Heikki Vauhkonen,
Reijo Vauhkonen and Matti Virtaala. The Board of Directors
selected Matti Virtaala as chairman and Reijo Vauhkonen as vice-
chairman of the Board. PricewaterhouseCoopers Oy, authorized
public accountants, was selected as the auditor.

Authorization to buy and relinquish own shares

The annual general meeting granted the Board of Directors the
authorization to acquire the company’s own shares.
Own shares are acquired for the development of the company’s
capital structure and to be used as a means of payment in
acquisitions and other structural arrangements. The manner and
scope of these transactions is at the discretion of the Board of
Directors. The annual general meeting granted the Board of
Directors the authorization to relinquish the company´s own shares
respectively. The shares can be relinquished as compensation in
business and company acquisitions or used in other structural
arrangements over which the Board of Directors has complete
discretion. In addition, the Board of Directors is allowed to make
decisions over the sale of company’s own A-shares through public
trading at the Helsinki Stock Exchange to secure funds for future
company acquisitions or investments. The Board of Directors can
also propose the acquired shares to be void by decreasing the
capital stock. No more than a total of 67,213 company A shares and
no more than a total of 23,850 company K shares shall be acquired.
The company A shares are acquired through public trading at the
Helsinki Stock Exchange and the company K shares ordinarily in

proportion of the ownership of the shareholders by making a
purchase offer to the K shareholders.

Future prospects

The net sales and the profit of the group are expected to increase
for the whole financial year when compared to the prior year.

ME 01-03/ 01-03/ Change, 01-12/
2003 2002 % 2002

Net sales 11.9 12.7 -6.3 52.5
Change in inventories of
finished products 0.1 0.9 0.4
Production for own use 0.2 0.7
Other operating income 0.1 0.1 0.6

Materials and external charges 3.6 3.9 15.3
Personnel expenses 4.6 5.3 19.5
Depreciation and value adjustments 0.9 1.0 4.3
Other operating expenses 2.7 3.0 11.9

Operating profit 0.3 0.7 -57.1 3.2
% of net sales 2.5 5.5 6.1

Financial income and expenses 0.1 0.1

Profit before extraordinary items 0.3 0.8 -62.5 3.3
% of net sales 2.5 6.5 6.3

Income taxes 0.1 0.2 1.0

Profit for the period 0.2 0.6 -66.7 2.3

03/2003 03/2002 12/2002
Non-current assets 20.6 23.4 21.2
Current assets
Inventories 6.5 7.1 6.3
Other current assets 17.0 13.6 15.6

Liabilities and shareholders´equity
Capital stock 6.2 6.2 6.2
Other shareholders´equity 18.1 18.6 19.8
Non-current liabilities 7.4 3.9 7.4
Current liabilities 12.4 15.4 9.7
Total assets/liabilities 44.1 44.1 43.1
CASH FLOW STATEMENT 01-03/ 01-03/ 01-12/
2003 2002 2002
Profit before extraordinary items 0.3 0.8 3.3
Depreciation and other adjustments 0.9 0.9 4.1
Change in net working capital -0.3 -0.7 -0.8
Financial items and taxes -0.3 -0.5 -1.3
Cash flow from operating activities 0.6 0.5 5.3

Investments in fixed assets -0.4 -1.7 -4.3
Proceeds from sale of fixed assets
and other changes in fixed assets 0.3 0.4
Net cash used in investing
activities -0.4 -1.4 -3.9

Cash flow before financing
activities 0.2 -1.0 1.4

Acquistion of own shares -0.2
Long-term borrowing 7.8
Repayment of long-term loans -0.2 -0.1 -4.2
Dividends paid -2.7
Net cash flow from financing
activities -0.2 -0.1 0.7

Net increase (+)/decrease (-)
in cash and cash equivalents 0 -1.0 2.1

Cash and cash equivalents at the
beginning of the period 7.2 5.1 5.1
Cash and cash equivalents at the
end of the period 7.2 4.0 7.2

03/2003 03/2002 12/2002
Order stock (March 31), ME 6.9 7.2 3.9
Gross investments, ME 0.4 1.7 3.9
Gross investments/net sales, % 3.4 13.5 7.4
Average number of staff 518 619 578
Number of staff at the end of
period 540 612 562

Earnings per share, Euro 0.11 0.34 1.35
Equity/share, Euro 13.32 13.60 14.25
Solvency ratio, % 55.6 56.1 61.5
Gearing, % 3.3 6.6 3.9
Current ratio 1.9 1.3 2.3
Average number of shares 1821277 1799724 1798671
Number of outstanding shares
at the end of period 1821277 1799724 1821277

03/2003 03/2002 12/2002
Loans from credit institutions
and other non-current liabilities
for which mortgages have been given 5.2 4.2 5.3
Given mortgages 6.7 6.5 6.7
Other mortgages and pledges given
on behalf of own liabilities 1.3 0.9 1.3

Environmental commitments
On the basis of mining act and environmental legislation Tulikivi
Corporation has landscaping commitments. The amount of the
commitments can not at the time being be reliably estimated.

Off-balance sheet financial instruments
The significance of off-balance sheet financial instruments is

The interim report has not been audited.

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


Board of directors

Distribution: The Helsinki Stock Exchange
Central Media

Additional information: Tulikivi Corporation, 83900 Juuka, tel.
+358-13-68 11 11,
– Chairman of the Board of Directors Matti Virtaala
– Vice Chairman of the Board of Directors Reijo Vauhkonen
– Managing Director Juha Sivonen