1 / 45

Juha Sivonen February 7, 2007

Tulikivi Corporation. Juha Sivonen February 7, 2007. Briefing on February 7, 2007 at 9:00. Welcome Financial Statements 2006 Managing Director’s review Tulikivi’s policies. Financial Statements 2006.

sagerl
Télécharger la présentation

Juha Sivonen February 7, 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tulikivi Corporation Juha Sivonen February 7, 2007

  2. Briefing on February 7, 2007 at 9:00 • Welcome • Financial Statements 2006 • Managing Director’s review • Tulikivi’s policies

  3. Financial Statements 2006 • In 2006, the Tulikivi Group’s sales increased by 40.1 per cent to EUR 82.1 million (EUR 58.6 million in 2005). • The Group’s profit before taxes rose by 28.6% to EUR 7.8 (6.1) million. • Cash flow from operating activities before investments was EUR 12.0 (10.5) million. • The order book at the turn of the year amounted to EUR 10.4 (9.2) million. • The new factory started up in November as planned.

  4. Fourth-quarter earnings were affected by: • Distribution channel change in Finland MEUR 0.3. • Recognition of environmental provisions MEUR 0.2. • Start-up expenses for the new factory. • Launch of the new product generation.

  5. Consolidated Income Statement, Summary MEUR 01-12/2006 01-12/2005 Change, % Sales 82.1 58.6 40.1 Operating profit 8.2 6.3 30.9 Percentage of sales 10.0 10.7 Profit before taxes 7.8 6.1 28.6 Percentage of sales 9.510.3 Profit for the year 5.7 4.4 31.1

  6. Segment Information 2006 2005 MEURMEUR Sales 82,1 58,6 Soapstone Fireplaces 61,3 52,2 Natural Stone Products 7,3 6,4 Ceramic Products 13,5 MEUR MEUROperating profit 8,2 6,3 Soapstone Fireplaces 9,8 8,8 Natural Stone Products 0,3 0,2 Ceramic Products 1,2 The Group’s unallocated expenses -3,1 -2,7

  7. Key Figures 12/2006 12/2005 Order book (Dec. 31), MEUR 10.4 9.2 Gross investments, MEUR 24.1 4.8 Gross investments, % of sales 29.4 8.1 Average number of staff 664 514 Earnings per share, EUR 0.16 0.12 Equity per share, EUR 0.83 0.70 Return on investment, % 21.7 20.7 Equity ratio, % 46.4 63.0 Gearing, % 40.9 -3.1 Current ratio 1.5 1.6 Average number of shares 3678475536425540 Number of shares, Dec. 31 3714397036425540

  8. Consolidated Balance Sheet MEUR 12/2006 12/2005 Assets Non-current assets 40.2 22.0 Inventories 10.6 7.0 Other current assets 15.4 11.6 Total assets 66.2 40.6 Equity and liabilities Shareholders’ equity 30.7 25.5 Non-current liabilities 18.7 3.3 Current liabilities 16.8 11.8 Total equity and liabilities 66.2 40.6

  9. Consolidated Cash Flow Statement MEUR 2006 2005 Cash flows from operating activities Profit for the period 5,7 4,4 Net cash flow from operating activities 12,0 10,5 Net cash flow from investing activities -20,1 -4,1 Net cash flow from financing activities8,9 -7,4 Cash and cash equivalents at end of period 4,9 4,1

  10. Outlook For the Future • The positive trend in the economy and brisk construction will continue in Tulikivi’s main market areas and demand for fireplace products is expected to remain solid. • Consolidated sales and earnings will develop favourably at the annual level. • The start-up of the new factory and the new distribution channel in Finland will burden the earnings trend in the first part of the year.

  11. Managing Director’s Review

  12. 80 70 60 50 40 30 20 10 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Sales Finland Exports

  13. Sales By Country 2006 Finland • Sales in Finland MEUR 40.2 (27.9) • 48.9% (47.6%) of sales • Sales from exports MEUR 41.9 (30.7) • 51.1% (52.4%) of sales

  14. Finland, Fireplaces • The Finnish fireplace market grows by 2-3% a year. • Tulikivi’s growth -8%, Kermansavi’s +20%, resulting in slight overall growth. • The distribution channel change at the beginning of the year is a measure in line with strategy. • Market shares for materials: Soapstone 20%, Ceramic 20%, Brick/Tile 40%, Metal 15%, Other 5% (RTS). • Tulikivi’s market share is approx. 17%, Kermansavi’s approx. 12% (RTS).

  15. Tulikivi Showrooms • Currently 35 showrooms • Target 45

  16. Sales By Country 2006 Finland Germany • Growth in fireplace sales in Germany approx. 25%. • Distribution channel development continued. • Almost 50 retailers. • Rising economic and confidence indicators. • VAT increase at the turn of the year.

  17. Sales By Country 2006 Finland Germany Sweden • No growth in fireplace sales in Sweden. • Distribution channel overhaul in 2006. • One of Tulikivi’s major lining stone customers is Swedish company Nibe.

  18. Sales By Country 2006 Finland Germany Sweden France • Over 50% increase in fireplace sales in France. • Distribution working well. • State tax incentives begun in 2005 to continue for the moment.

  19. Sales By Country 2006 Finland Germany Sweden France Belgium • Approx. 20% growth in fireplace sales. • Belgium is a “heater country”. • Long-term efforts by the importer has generated continual growth.

  20. Sales By Country 2006 Finland Germany Sweden France Belgium Denmark • Sales to Denmark consist of lining stones. • Four major customers.

  21. Sales By Country 2006 Finland Germany Sweden France Belgium Denmark USA • Approx. 15% increase in fireplace sales. • Includes USA & Canada. • Steady and profitable growth with trusted partners in cooperation. • High average price on products.

  22. Sales By Country 2006 Finland Germany Sweden France Belgium Denmark USA Estonia • Over 50% sales growth in Estonia. • Tulikivi holds a strong position in a small market. • Operations extended to cover the entire Baltic region.

  23. Sales By Country 2006 Finland Germany Sweden France Belgium Denmark USA Estonia Austria • Approx. 20% increase in fireplace sales in Austria. • Long-term efforts by importer. • Strong tradition for heat-retaining fireplaces.

  24. Sales By Country 2006 Finland Germany Sweden France Belgium Denmark USA Estonia Austria Russia • Fireplace sales rose by 50% in Russia and its surrounding areas (Ukraine, Kazakstan).

  25. Russia and its surrounding areas • Focal area for exports. • Operational focal point building up the distribution channel. • Focal areas St. Petersburg, Moscow and other metropolis/cities. • Target groups: • Construction companies • Log house manufacturers • Wealthy homebuilders and their architects

  26. Sales By Country 2006 Finland Germany Sweden France Belgium Denmark USA Estonia Austria Russia Switzerland • Slight growth in fireplace sales in Switzerland. • Distribution channel project begun with long-term importer (approx. 20 years). • Strong tradition for heat-retaining fireplaces.

  27. Sales By Country 2006 Finland Germany Sweden France Belgium Denmark USA Estonia Austria Russia • Sales growth of over 10% in Italy. • Long-term efforts by importer. • Focal point northern Italy. Switzerland Italy

  28. Sales By Country 2006 Finland Germany Sweden France Belgium Denmark USA Estonia Austria Russia Other countries: The Netherlands, Ukraine, Latvia, Lithuania, Norway, Luxembourg, Hungary, Kazakhstan. Switzerland Italy Others

  29. Natural Stone Products • Sales MEUR 7.3 (6.6). • Operating profit MEUR 0.3 (0.2). • A one-third growth in interior decoration stones, which now account for approx. 70% of sales. • Tulikivi is the market leader in interior decoration stones in Finland. • The total interior decoration stone market in Finland is over MEUR 15 and the market is growing at over 15 per cent a year. • The focus will remain on interior decoration stones and consumer customers. • Productization and distribution channel enhancement. • Stone deliveries to building sites in addition.

  30. Lining Stones • Soapstone is an extremely popular lining material for heaters in Central Europe and Scandinavia. • Brisk sales growth. • Tulikivi’s market share over 50%. • Represents a significant proportion of the Soapstone Fireplaces’ business. • Profitability corresponds to the Soapstone Fireplaces’ average. • Tulikivi’s strengths lie in high quality, reliable delivery, service and demanding processing. • Top European manufacturers as customers, including Swedish company Nibe and German company Hark.

  31. Ceramic Products • The integration of Kermansavi has progressed according to plan. • Profitability trends meet calculations done at the acquisition stage. • In segment reporting , ceramic fireplaces will be included under the Fireplace business from the start of 2007. • Utility ceramics will be developed within profitability limits.

  32. New Collection • The collection has been enthusiastically received. • Demand exceeds production capacity. • New combustion technology, new doors. • New structural concept. • Design professionals. • “The best product on the market”. The Fine Particle Forum awarded Tulikivi Corporation the 2006 Fine Particle Achievement of the Year. Tulikivi has devoted efforts towards cleaner combustion technology that helps reduce emissions from small-scale burning of wood. Tulikivi has therefore improved air quality. The Fine Particle Achievement of the Year award was presented for the first time in 2006.

  33. Investments in Production • The new factory was finished at record-breaking speed and was inaugurated on November 2, 2006. • Manufactures the new collection. • Uses mainly small blocks as raw material. • Production start-up has not progressed according to plan. The target levels will be reached early in the year. • Modern techniques in stone processing have brought challenges.

  34. Tulikivi’s Policies

  35. To Index Tulikivi’s Mission Business concept Business areas To bring warmth and comfort to your home with high-quality branded products that sit well with your interior décor. Fireplaces Natural Stone Products • Environmental impacts are taken into consideration in the design and manufacture of products. • Tulikivi must continually rack up good earnings, allowing investors to enjoy competitive dividends and increasing share value, and allowing employees to rest assured that their jobs are secure. What’s more, their own earnings are linked to the company’s financial result.

  36. To Index Tulikivi’s Values • Entrepreneurship • Courage • Satisfied customers • Fair play

  37. To Index Tulikivi’s Shareholder Policy • Whatever we do, we think about productivity and growth. • Steady share appreciation and yield. • We take the environment into consideration in our operations. • We foster our corporate image. • We develop branded products and seek to be distinctive. The company pays a dividend of about half of its annual result, maintaining an equity ratio of at least 40 per cent.

  38. To Index Tulikivi’s Vision For 2009 • In selected market areas, Tulikivi is the leading company specialised in branded heating products and natural stone products for the home. • Globally bolstering its leading position in soapstone products and raw material reserves. • Expanding into new product groups and new markets as the markets develop.

  39. To Index Economic Target – 5-Year Period • Annual organic growth of over 5%. • Growth through acquisitions. • Improvement of earnings level by 2 percentage points • per annum. • Production technology and quarrying • efficiency. • Cost-effectiveness and product policies • Economical use of raw materials • Capital management • Increasing inventory turnover • Retaining the current level of investments Over 20 % return on capital

  40. To Index Strategic Policies 2007 – 2009 1. We grow organically by over 5% a year, and also through acquisitions. 2. Our target for return on investments is over 20%. We improve relative profitability by 2 percentage points per year. 3. We bolster the Tulikivi brand. 4. We systematically expand into new customer groups and markets and boost marketing effectiveness through segmentation. 5. We further develop our leading, customer-focused product design, technology and service concept.

  41. To Index Strategic Policies 2007 – 2009 6. We expand and hone the efficiency of our cooperation and distribution network. 7. We improve competitiveness by optimizing production structure, improving our quality and manufacturing technology, and developing efficiency in productivity and sourcing. 8. We increase value added and optimize yield from our production processes. 9. We bolster our position in managing soapstone reserves. 10. We ensure that our personnel and partners are committed to carrying through our objectives.

  42. To Index The Factors Behind Tulikivi’s Success • Product concepts: • Innovative product development • High-quality, environmentally friendly • products • Satisfied customers • Company and brand • Well-known brands • Solid financial position • Good reputation • Networks: • Commitment to Tulikivi • Family businesses as retailers • Partners in cooperation • Tulikivi installers • Attitude and expertise: • Pioneering attitude • Expert and motivated personnel • Corporate culture and values • Raw material reserves: • The properties of soapstone • Sufficient stone reserves

  43. Key Measures For the Near Future • Completion of the distribution channel change in Finland. • Expansion of the distribution network in Germany. • Outlays on marketing and expanding distribution channels in Russia. • Honing the new production concept, expanding the manufacture of new models. • Global stone surveys. • Further development of Tulikivi’s interior decoration stone concept and distribution.

  44. To Index Trends • The price of energy is rising and the use of bioenergy is increasing, as is uncertainty over energy distribution. • Environmental protection is gaining growing importance, emissions regulations are becoming stricter. • In construction, increasing attention is being paid to lifecycle thinking and there is a growing appreciation for natural materials. • People are focusing more on home comforts, interior decorating and their living environments. • Customers are buying products that come as ready packages and the amount of work they put into the process is decreasing.

  45. Thank you! Tulikivi Corporation 83900 JUUKA Tel. +358 (0) 207 636 000 www.tulikivi.com

More Related