tulikivi corporation s financial statements 2009 future ... · market share • consumers’...
TRANSCRIPT
14.04.2010Managing
Director
Heikki Vauhkonen
Tulikivi Corporation’s
financial
statements
2009Future
outlook 2010
Tulikivi in 2015
Turnover
53.1
66.5
-20.1
Operating
profit
-2.4
3.2
-173,5
% of turnover
-4.5
4.9
Profit
before
taxes
-3.3
2.1
-260,8
% of turnover
-6.2
3.1
Profit
for the year
-2.4
1.4
-265,1
01-12/2009 01-12/2008
Change, %
Summary
of consolidated
income
statement
EUR million
Earnings
per share, EUR
-0.06
0.04
Equity
per share, EUR
0.64
0.73
Solvency
ratio, %
39.4
41.2
Current ratio 1.9
2.0
Order
book, (31.12), EUR million
4.8
4.9
Gross
investments, EUR million
2.1
2.9
Gross
investments/turnover, %
4.0
4.4
Average
personnel
417
526
12/2009
12/2008
Number
of shares
average
37023708
37128494
Number
of shares
31.12
37019770
37069970
Key figures
12/2009
12/2008
AssetsTotal
non-current
assets
34.3
37.2
Total
current assets
26.1
28.9
Total
assets
60.4
66.1
Liabilities
and shareholders’ equity
Capital stock
6.3
6.3
Other
shareholders´ capital
17.4
20.9
Total
non-current
liabilities
22.9
24.6
Total
current liabilities
13.7
14.3
Total
liabilities
and shareholders’ equity
60.4
66.1
EUR million
Consolidated
balance
sheet
2009
2008Cash
flow
from
operating
activities
Profit
for the financial
year
-2.4 1.4
Net
cash
flow
from
operating
activities
3.7 7.6
Net
cash
used
in investing
activities
-1.8
-3.1
Net
cash
flow
from
financing
activities-3.0 3.4
Cash
and cash
equivalents
at end
offinancial
year
10.6
11.7
EUR million
Consolidated
cash
flow
statement
Turnover by country 2009Finland
France
Germany
Belgium
Sweden
Russia
Austria
USA
Switzerland
Italy
Others
Denmark
Other
countries:
Estonia, Ukraine, Norway, Lithuania, The Netherlands, Romania, Spain, Bulgaria, Slovenia
Finland
• Markets
are
estimated
to have
declined
by
some 20 per cent
annually, in terms
of units
sold
• Tulikivi and Kermansavi maintained
their
market share
• Consumers’ interest
in fireplaces
picked
up
during the summer
• Fireplaces
must
have
the CE mark
as of 1.1.2011 (one-year
transition
period)
• More
international actors
have
entered
the Finnish
fireplace
market
in recent
years
• Increased
competition• New product
groups
available
for
consumers
Finland
• The development
of Tulikivi’s
own
distribution
channel
has
been
continued according
to plan
• Currently
40 Tulikivi Showrooms
and 60 Tulikivi Service Points
• High-quality, professional
service
is our
distribution
channel’s key competitive
edge
• The Tulikivi academy in co-operation
with
the North Karjala Educational Federation of Municipalities
(Pohjois-Karjalan Koulutuskuntayhtymä)
• Some
20 Tulikivi Showroom
entrepreneurs
and salespersonswill
take
part
in a pilot
group
tailored
for Tulikivi
• Tulikivi Tailor
program
online
since
September
Exports
• Due
to the financial
crisis, demand
collapsed
in the Baltic
countries and Russia
• Exceptionally
large
differences
in the performance
of fireplace market
areas
last
year
• In France, fireplace
demand
has
been
increased
by
an energy efficiency
subsidy
granted
by
the government: consumers
may
be
compensated
for up
to 40% of the value
of a purchased
product
in taxation
• In France, importers
have
invested
in new exhibitions
Exports• In Germany, Belgium, Austria, and Switzerland, demand
has
been
steady, although
in the autumn
it
was
weaker
• Small-scale
wood
combustion
is an important
tool in battle
against
climate
change
also
in the USA,
where
purchasers
of fireplaces
can
receive
a USD 1500 tax
rebate
for the purchase
• In Germany, the authorities
have
issued increasingly
tight
emissions
regulations
for
fireplaces
to reduce
particle
emissions
Lining
stones
• Demand
for lining
stones
contracted
along
with
the markets
in general
• In 2009, additional
resources
focused
on sales and cost
calculation – our
competitiveness
has
improved
• Customer
base
expanded
from
the stove’s
lining
stones
also
to other
components
• Focusing
lining
stone
production
at Suomussalmi has
improved efficiency
of operations, thus
improving
our
price
competitiveness
Natural
stone
products
• Market conditions
have
been
challenging throughout
the year
• Focus
still
strongly
on developing
interior decoration
stones
sales and overall
service
• Major kitchen
chains
as customers
• Satisfactory
amount
of individual
sites, hardly
any
larger
apartment
blocks
or
hotels
• Mosaic products
currently
being
developed
• Using
natural
stones
in fireplaces
Production
• 2009 especially
challenging
for fireplace
production• Production
volume
declined
substantially
• Adjustment
measures
and projects
to develop
operations were
also
carried
out at the same
time
• An 8% annual
increase
in productivity
was
achieved, which
was reflected
in profitability, especially
in the autumn
• In the autumn, the sales margin
rose
to a higher
level
than
that of the previous
year
• Lining
stone
production
focused
at Suomussalmi• Revised
production
bonus supports
productivity
performance
Production
• New working
hour
models
introduced• Frequency
of occupational
accidents
has
decreased
substantially
• Sick
leave
absences
have
decreased
substantially
from
previous years’ level
• Insurance
class
of pension
contributions
has
dropped
by
several classes
• Personnel
committed
to development
work
with
revamped
initiative activity
Production
• Test
quarrying
commenced
at the Vaaralampi mining
patent
in Juuka after
extensive
preparations
• Quality
of raw
material
in line
with
our expectations
• Use
of small
stone
in production
has
been further
enhanced
• Reduces
need
for new quarry investments
• Investment
needs
moderate
in the future
Future
outlook
• In Finland private
house
building
and fireplace
demand
picked
up last
autumn• Positive
development
is expected
to continue
• The trough
in demand
in Russia
and the Baltic
countries
is behind us
• In Central
Europe, stove
lining
stone
sales have
increased significantly, but
securing
a market
for fireplaces
continues
to be
a
challenge
Future
outlook
• New products
will
increase
the company’s
turnoverin the second
half
of the year
• We
will
continue
adjustment
measures, withlayoffs
where
necessary
• As a result
of recovering
sales and improved
cost- effectiveness, full-year
net
sales are
expected
to increase
from
the previous
year, and the result
is expected
to turn
positive during
the financial
year
Tulikivi in 2015
• Tulikivi Group specialises
in fireplaces
and heating
equipment
that
produce
radiant
heat, and in household
natural
stone products
• Our
customers
value
the environmental- friendliness
and aesthetic
beauty of our
products, the comfort
they
generate
and the benefits
of wood
heating
• Tulikivi is a versatile
company
that
values its
customers, entrepreneurship
and fair
play
Operating
environment
• Bioenergy
use
is increasing
for ecological
and financial
reasons
• Energy
independence
is valued
• Products’ aesthetic
beauty and practicality
appeals
to consumers
• Well-being
and housing
comfort
are
core
values
for consumers
• A lot
of time
is spent
at home: people
want
to ensure
that
their
homes are
well-equipped
and comfortable
• Fireplace
regulation
is tightening
in the EU, number
of producers
declining
Product
groups
• Grouped
in a customer-oriented
way
• Grouping
provides
new marketing
and product
development
opportunities
• Significantly
inreases
the number
of potential
customers
• Part
of Tulikivi’s
product
strategy
renewed, with
Hannu Kähönen (Creadesign
Oy) as
design manager
• Three
groups:
• Tulikivi Heating
& Environment
• Tulikivi Interior
& Design
• Tulikivi Cooking
Tulikivi Heating
& Environment
• Builders
and renovators
in rural
areas
and population
centres
as customers
• Also
for leisure
dwellings
• Customers
interested
in
environmental-friendliness, energy
efficiency, cost-efficiency, comfortable
heat
• Heat-retaining
Tulikivi and Kermansavi
fireplaces
and bakeovens
• On sale
in all
market
areas
• We
will
increase
the proportion of
various
natural
stone
surfaces
in the
range
Tulikivi Heating
& Environment
• Making
use
of one’s
own
wood
which costs
nothing
is important
for
consumers
• 3-10 cubic
metres
of wood
are
burnt per year
• Tulikivi Green products: water
heating, pellet burning
and stove
control
system
• International launch
at Progetto Fuoco
fair, Verona
• Products
available
as of April
2010
Cleaner
combustion
with
pellets
Fireplace’s emissions and efficiency, measured
in accordance with EN 15250
Pahta /Cm = 1575 kg
Limit value (AUT)
Efficiency [%] 90,4 > 78 %
CO [mg/MJ] 705 < 1100
NOx [mg/MJ] 69 < 150
OGC [mg/MJ] 21 < 80
•High-quality
pellets
burn cleanly
– ash
accounts
for approximately0.5% of the fuel’s weight.• Heat
value
of the pellets
is approximately
15% higher
than
that
of dry
firewood.• High-quality
pellets
are
a fuel
of uniform
quality.
Tulikivi-GreenP10
Pellets: 15 dm3
≈
9.5 kg ≈
45 kWh
Corresponds
to birch: 45 kWh ≈
11 kg
• The ceramic
combustion
chamber
ensures
a sufficiently
high
combustion
temperature
• In the initial
stage
of combustion, the combustion
air is directed
on top of the pellet bed
as secondary
air
• In the final stage of combustion, the primary air pushes through the pellet bed → efficient
and complete
burning
of all
pellets
is ensured
• No moving
parts
Tulikivi-GreenP10
= primary
air
= secondary
air
Simple
and ingenious
pellet system
for Tulikivi fireplaces
Tulikivi-GreenC10
Intelligent
fireplace
1 adjust
the combustion
air volume
to the correct
level
of the stage
of the fire2 instruct
the user
during
the use
of the fireplace
3 indicate
the heat-retention
status of the fireplace
4 operate 24/7
Tulikivi fireplaces
may
be
fitted
with
a control
system
which
will
→ Cleaner
combustion
and easier
use
Tulikivi-GreenW10
At the heart
of the system
is a Tulikivi fireplace
equipped
with
a heat
exchanger
The rest
of the heat
radiates
into the room.
The fire
is lit
normally.
The heat
is first
collected
in the inner
core
of the fireplace
Some
of the heat
is transferred
to the circulation
water
via a heat
exchanger
between
the inner
core
and the outer
shell.
1
4
2
3
Tulikivi-GreenW10
System
for heating
and hot
water
With
a Tulikivi-GreenW10
heating
system, much
of the heat
can
be
produced
ecologically
using
bioenergy. Perfect
for construction
of low-energy
housing.
Tulikivi Interior
& Design
• For customers
living
in towns
or
the suburbs
who
are
building
or
renovating
their
home
• Customers
interested
in aesthetic
design,
durability, comfortable
heat
and the
environment
• Interior
decoration
fireplaces
under
theTulikivi
and Kermansavi brands, with
natural
stone
and ceramics
as surface
materials
• Sales: all
market
areas
• International launch:
Progetto
Fuoco
fair, Verona
• September
2010 entire
range
launched: 8-
10 fireplaces
Tulikivi Interior
& Design
Designer: Hannu Kähönen, Creadesign
Oy
Tulikivi Interior
& Design
Designer: Hannu Kähönen, Creadesign
Oy
Tulikivi Interior
& Design
• For customers
living
in towns
or
the suburbs
who
are
building
or
renovating their
home
• Customers
interested
in aesthetic
design, durability
and the environment
• Tulikivi interior
decoration stones
• Sales: Finland
Tulikivi Cooking
• For customers
living
in towns
or the countryside who
love
cooking
and/or
are
owners
of fireplaces
• Customers
interested
in cooking, practicality
and durability
• Tulikivi and Kermansavi bakeovens and stoves, Kermansavi utility
ceramics
• Main market
area
is Finland
Procedures
• Focus
is on finished
consumer
products
• Also
provide
consumers
with
tailor- made
solutions
• Lining
stones
through
B-to-B
deals: customers
are
important
European
heating-appliance
manufacturers
• Building
stones
through
B-to-B
deals: sales in Finland and Scandinavia
• Significant
share
of tabletops
through B-to-B
deals:
sold
in Finland
Key measures
• To systematically
focus
on customer
needs
and development
of the operating
environment
• To launch
new product
groups
through
own
product development
work
and acquisitions
• To extend
our
operations
to new market
areas
and new customer
groups
• To make
product
management easier
by
modulation
of products and by
updating
the IT system
• To primarily
provide
electronic
services
to dealers
and customers
• To network
with
the leading
companies
in the sector
• To improve
profitability
through
a continuous
development
and learning
approach
Financial
targets
for 2015
• Return
on investment
over
20%
• Organic
growth
for the coming
years
of over
10%
• Possible
acquisitions
to support
company
strategy
• Profitability
target: profit
before
taxes
will
be
10% of net
sales
Strategy
targets
• New strategy
broadens
customer
potential:
• More
possibilities
for growth
in main export
areas
• Retain
Finland’s market share
• Reduce
dependence
on an individual
market
area
or customer
group
• More
stable
growth
• Fluctuations
in net
sales reduced
• More
targeted
product
development
and marketing
• Increase
customer
focus
• Concentrate
on the needs
of a specific
customer group
Strategy
targets
• Utilise
strengths:
• Distribution
channels
• Brands
• Design expertise
• Stone and ceramics
expertise
• Combustion
technology
• Increase
speed
of development
operations
Tulikivi Oyj83900 JUUKAPuh. 0207 636 000www.tulikivi.com
THANK YOU!