Net sales up, better operating result and significantly stronger order books

Tulikivi Oyj

TULIKIVI CORPORATION INTERIM REPORT MAY 6, 2022 AT 1:00 PM

– Tulikivi Group net sales in the first quarter amounted to €8.4 million (€6.5 million, 1–3/2021).

– The operating profit of the Tulikivi Group in the first quarter amounted to 0.3 (0.0) million euros and the pre-tax profit was 0.2 (-0.2) million euros.

– Net cash flow from operating activities in the first quarter amounted to 0.7 (0.1) million euros.

– Order books amounted to 10.5 (5.2) million euros at the end of the period under review.

– The feasibility study for the Tulikivi talc project in Suomussalmi is progressing.

– Future outlook: Revenue is expected to increase in 2022 and comparable operating income is expected to improve compared to 2021.

Main financial ratios

1-3/22

1-3/21

Switch, %

1-12/21

Sales, MEUR

8.4

6.5

29.8%

33.5

Operating profit/loss, MEUR

0.3

0.0

1921.4%

2.7

Operating profit/loss without impairment, MEUR

0.3

0.0

1921.4%

2.7

Profit before tax, MEUR

0.2

-0.2

212.1%

2.1

Total comprehensive income for the period, MEUR

0.1

-0.2

183.3%

1.7

Earnings per share, in euros

0.00

0.00

0.03

Net cash flow from operating activities, MEUR

0.7

0.1

3.0

Equity ratio, %

29.9

24.0

29.4

Net debt ratio, %

137.1

186.3

142.9

Return on investment, %

5.7

0.3

12.6

Comments from Heikki Vauhkonen, Managing Director:

The company’s order intake increased by 39% in the first quarter and amounted to 12.2 (8.8) million euros. Demand for Tulikivi stoves has been exceptionally strong in Central Europe. The sharp rise in heating energy prices and the uncertainty surrounding energy availability and security of supply to the home have increased consumer interest in purchasing alternative heating systems, such as a chimney. In addition, the Covid-19 pandemic has increased consumer interest in renovation, holiday homes and low-rise housing, both in Finland and in exporting countries, which has had a positive impact on demand. in all product groups.

The sales growth is also explained by a long-term work to improve online sales, an updated concept of home renovations and the rationalization of distribution channels in certain export markets. The company’s order books increased significantly and amounted to €10.5 (5.2) million at the end of the reporting period.

Profitability has improved despite continued strong price increases for steel, purchased components and energy in recent months, driven by higher net sales, price increases and efficient productivity. The company’s profitability is also supported by the fact that its operations rely to a large extent on the use of its own soapstone reserves in Finland.

The ceramic color options introduced in the Karelia collection at the end of last year, as well as a Kermansavi collection based on 80% recycled materials, have been well received in the market. The new ceramic designs, which meet the ecodesign requirements that came into force on January 1, 2022, strengthen Tulikivi’s market position in Finland and expand the potential customer base in export markets.

In the first quarter, Tulikivi made progress on its feasibility study for the Suomussalmi talc project, the objective of which is to further refine the project’s economic, environmental and mining plans for industrial operations. Rock mechanics studies were also carried out in the first quarter to refine the ore study on the Haaponen deposit and for the EIA (environmental impact study) procedure.

TULIKIVI CORPORATION

board of directors

Breakdown: Nasdaq Helsinki

Key media

www.tulikivi.com

Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)207 636 555

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