– 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.

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.

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.

TULIKIVI CORPORATION

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 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.

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.

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.

TULIKIVI CORPORATION

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