Transcript Ei dian otsikkoa

Fireplace Business, Finland
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Single-family housing construction and
renovation continued at an active pace
The fireplace market grew 3-5% in Finland
Tulikivi’s fireplace sales in Finland grew 12%
Growth came from Kivia Oy
The Group preserved its market position
Tulikivi market share -1%, Kivia market share
+1%
Focusing on Tulikivi: Mittakivi brand dropped
at the beginning of 2005
New manufacturers and importers appear; the
market is becoming “Europeanized”
Aggressive new players (e.g. Vuoluerkkeri) with
good reputations in the fireplace market
Fireplace Business, Germany
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The focus of the German fireplace market has
shifted to cheaper products
Distribution channels changing
Hardware store channel gains in importance
Many fireplace stores are in financial difficulty
Sales fell 15%
Importance of German fireplace market in
fireplace exports fell to 30%, and to 17% of all
exports
Tulikivi needs to revamp its distribution channel
strategy
Two-step import model has come to the end of the
road
Goal to significantly increase reseller network
Fireplace Business, other countries
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Fireplace exports grew 10% (not counting Germany)
Increases: Russia 36%, France 23%, Belgium 22%,
Switzerland 18%, Norway 18%, USA & Canada 7%,
Estonia +5%, Italy +2%,
Decreases: Germany -15%, Sweden -10%,
Austria -6%
Russia is a new focus area
New law in France subsidizes funds for heat-retaining
fireplace purchases by 35% of the purchase price (list
of qualifying products in preparation)
Belgian importer has worked with its eye on the long
term
New growth in Switzerland after a decline
Last year’s boom in Sweden and Norway (fueled by
high electricity prices) has not continued
Fireplace Business, Russia
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Focus of investment on exports
Tulikivi organization is in good shape (market
trailblazer, delivery process, products)
Operations are in the start-up stage and a reseller
network is actively being built
Focus on St. Petersburg and Moscow, resellers in
other big cities
Target groups:
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Building firms and building supply businesses
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Makers of traditional log houses
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Wealthy private homebuilders and their
architects
Market research has been done in Moscow, St.
Petersburg and Karelia
Tulikivi name recognition in its business area is in
the 40-50% range, among contractors and designers
10-20%
Fireplace Business, lining stone
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Soapstone is a highly sought-after material
for heater lining in central Europe and
Scandinavia
Tulikivi market share is over 50%
Growth is approximately 15%
This area is a significant part of Tulikivi’s
business
Profitability is equivalent to the average for
the fireplace business
Tulikivi has strengths in quality, delivery
record, and handling difficult tooling jobs as
well as in service
Customers are the top manufacturers in
Europe, for example Nibe and Hark
Fireplace Business, Kivia Oy
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Net sales EUR 3.0 million, result
clearly in the black
Approximately 25 staff
Tulikivi becoming an owner has
helped the reputation of the company
and its products
Manufactures products under the
Kivia brand and new products such
as Salla for the Tulikivi brand
Successful test quarrying at
Juurikkaniemi
Architectural Stone Business
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Net sales EUR 6.3 million (8.3), on target with goal
Income EUR -0.1 million (-0.9); last six months slightly
positive
Unprofitable functions pruned from contract work
Fixed costs -40%
Interior decoration stone business as a share of net sales
is approximately 50% (30%, 2003)
Result of the interior decoration stone business is in the
black
Total market for interior decoration stones is
approximately EUR 15 million and is growing >15 per
cent annually.
Tough price competition in deliveries to construction
sites. The arrival of Chinese stone in Finland has
intensified the struggle for contracts.
Development projects
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Research & development expenditures EUR 1.5 million (1.3)
New product generation, “On Stone’s Terms” project
Assessment of the use of small blocks, decision on an
investment in a small stone sawing line at the beginning of
2005
Changing over to the use of stone from a new quarry
Change in finishing procedures in October
Choice of stones by test viewing, further development
Coaching for the Tulikivi Way of Working
Launching and certification of quality systems for customized
product factory and lining stones
Investments
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Investments EUR 3.9 million (2.9)
Test quarrying in Kuhmo
Preparations for quarrying in Koskela
Test drilling
Quarrying equipment
Contouring
Finishing
Soapstone reserves
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Foundation of Tulikivi business
Company controls an approximately 65-year supply in
 Juuka
 Suomussalmi
 Kuhmo
 Paltamo
Long-term investment of about EUR 500 000 per year
in prospecting
 Drilling 3000-5000 running metres
 Test quarrying
 Stone testing