KAUKOMARKKINAT 1997 CONTENTS

The Kaukomarkkinat Group 2

President’s Review 3

Financial Trends, 1993-97 4

Kaukomarkkinat Group Organization 1998 5

The Transforming East-West Market 6

Efficient Global Organization 8

Leading International Brands -adidas 10

Citizen - Number One in the Market 12

Panasonic – Human Electronics 14

Panasonic – the Professional’s Choice 16

Branded Products that Combine Style and Quality 18 Kaukomarkkinat Oy´s head office is in Espoo, near Helsinki. Established in Leipurien Tukku – a Food Industry Expert 20 1947, Kaukomarkkinat is a leading Finnish trading house and an expert in Leipurien Tukku – a Leading Supplier of Bakery Machinery 22 the global market. We specialize in international trade, imports, exports and Addresses 24 wholesale business.

Kaukomarkkinat Oy P.O.Box 40, Kutojantie 4 FIN-02631 Espoo, Finland Phone +358 9 5211 Fax +358 9 521 6641 e-mail: [email protected] THE KAUKOMARKKINAT GROUP

Kaukomarkkinat Oy Supervisory Board 1997 President, CEO Chairman: Eero Kinnunen Kari Ansio Vice Chairman: Timo Karake Jouko Tuunainen Management Board Matti Honkala Kari Ansio, President Matti Halmesmäki Hannu Närhi, Senior Executive Vice President Jari-Pekka Lehmuskoski, Senior Vice President Sakari Laine, Senior Vice President, Logistics and Finance Markku Keinonen, Senior Vice President, Legal Affairs Juha Koskenseppä, Senior Vice President, Personnel Jukka Forsström, Senior Vice President, until 31.3.1998 Jussi Neuvo, Senior Vice President, from 1.4.1998

The Group in Brief 1995 1996 1997

Total sales, FIM million 3,902.7 4,159.6 3,151.4

Net sales, FIM million 3,033.9 3,664.6 2,647.9

Profit before extraordinary items, FIM million 58.3 65.8 73.3 FIM million Balance sheet total, FIM million 1,485.4 1,266.2 806.4

Solvency ratio,% 20.1 27.0 46.3

Personnel at year-end 743 734 721 PRESIDENT’S REVIEW

The Kaukomarkkinat Group’s business once again made positive progress in 1997. The priority areas in domestic trade included importing and the wholesale of leading international brands such as adidas sporting goods, Citizen and Panasonic electronic produts. The Group’s main fields of business also included importing industrial electronics and trading in raw materials for food and semimanufactures as well as machinery and equipment for bakeries and institutional kitchens. In international trade and exports, the main market areas were Russia, the Baltic states, Poland and China. Trade with areas close to Finland, such as the Baltic states and the St Petersburg area, grew in importance.

The Group’s total sales and net sales The Panasonic-brand products made machinery and equipment for the were at a lower level than the by our biggest principal, Matsushita paper industry, healthcare products, previous year’s figures. This was due Electric Ltd of , strengthened and trade in stone materials for the to the ending of our almost 10 years their position particularly in the data building and monument industry. The of handling Panasonic exports to monitor business. Trade in Panasonic biggest and most successful of our Russia in April, when our principal set audio and video equipment for branch offices outside Finland was up a subsidiary of its own to handle professional applications and once again Poland, where more than what has become one of the biggest deliveries of industrial electronics also 40 local personnel skilled in various market areas for consumer grew substantially. On the other hand, fields of trade work under Finnish electronics in Europe. In this respect it trade in Panasonic consumer management. is understandable that our principal electronic did not advance as transferred Panasonic export expected, in spite of numerous top Taken as a whole the trend in the business into its own hands, even ratings in magazine tests, largely due Kaukomarkkinat Group was good, as though the fall in volume it has to exceptionally heavy competition on we reached a new record in net profit caused will be difficult to replace. price between different distribution from operations for the second year However, it is gratifying to report that channels. running. This must be considered a the net sales of the Group’s other good achievement, especially in view lines of business made healthy Leipurien Tukku’s business of the loss of Panasonic exports. progress, growing at a rate of 13%, operations for bakeries and which was well ahead of the overall institutional kitchens continued to I would like to thank all our customers trend in the market. make good progress and extra and principals as well as our growth was sought also in the Baltic employees for the excellent work we Domestic trade was given a boost by states and the St Petersburg have done together. Customer a continuing positive trend in economic zone, where we satisfaction, principal satisfaction, and consumer demand. The biggest established a subsidiary for job satisfaction for our personnel are growth came from adidas sporting developing local business activities. fundamental conditions for our goods, whose increase in sales success in the years ahead. We will amounted to no less than 53%. This In Russian trade, a major part of our continue to devote our efforts to meant a considerable strengthening business was the procurement of raw further develop these important of adidas’ market leadership in materials both for Finnish and for matters. Our aim is to achieve Finland, where it has already enjoyed foreign industry. In exports, consumer continuing and profitable growth for one of the best market shares by goods grew in importance, but we our business and that of our partners. international comparisons for some also continued our efforts to expand years. The same position is also held sales of various project deliveries and by Citizen watches, which once again industrial condition monitoring achieved growth in sales substantially systems. above the overall market growth in this line of business. We also did well In China trade, we strengthened our in the Swedish market, where we local sourcing expertise. The best have represented Citizen watches growth in export deliveries was of Kari Ansio since 1981. President, CEO KAUKOMARKKINAT GROUP 1993 – 1997

Financial trends 1993 1994 1995 1996 1997

Total sales, FIM million 2,545.3 3,022.0 3,902.7 4,159.6 3,151.4

Net sales, FIM million 1,745.6 1,987.9 3,033.9 3,664.6 2,647.9

Profit before extraordinary items, FIM million 32.0 15.8 58.3 65.8 73.3

Balance sheet total, FIM million 814.1 958.7 1,485.4 1,266.2 806.4

Liquid assets, FIM million 78.4 43.5 65.3 12.4 20.5

Gross margin, % 16.8 14.0 11.2 9.7 13.9

Operating profit before depreciation, % 4.1 2.3 2.6 2.4 3.8

Quick ratio 0.66 0.44 0.26 0.46 0.98

Current ratio 1.52 1.33 1.16 1.50 2.01

Solvency ratio, % 36.4 31.7 20.1 27.0 46.3

Return on investment, % 11.0 6.3 13.2 12.6 12.9

Return on equity, % 10.8 5.6 20.9 17.2 16.4

Investments, FIM million 19.6 17.5 24.8 22.2 24.7

Personnel at year-end 712 716 743 734 721

Formulas for Key Indicators

Quick ratio = Financial assets Current liabilities

Current ratio = Financial assets + inventories Current liabilities

Solvency ratio % = Shareholders’ equity + minority interest x 100 Balance sheet total

Return on = Profit before extraordinary items + interest expenses + other expenses of financing x 100 investment % Balance sheet total - non-interest-bearing debts (average for year)

Return = Profit before extraordinary items - direct taxes x 100 on equity % Shareholders’ equity + minority interest (average for year) KAUKOMARKKINAT GROUP ORGANIZATION 1998

Corporate Administration and Business Divisions

Kari Ansio, President, CEO Kauko East-West Trade Jussi Neuvo, Senior Vice President Sakari Laine, Senior Vice President • East-West trade • Economy • Transit • Finance • Oil products • Logistics • Trade with China • Internal auditing • Kauko-Metex • Data administration • Lubricants Juha Koskenseppä, Senior Vice President • Japan exports • Personnel Panasonic Divisions • Corporate services Jari-Pekka Lehmuskoski, Senior Vice President • Insurance • Real estate • Consumer electronics • Professional electronics Markku Keinonen, Senior Vice President • Industrial electronics • Contracts • Photo • Legal affairs Leipurien Tukku • Corporate Secretary Hannu Närhi, Senior Executive Vice President Kauko Branded Goods • LT-Tukku Oy Hannu Närhi, Senior Executive Vice President • LT-Kone Oy • Virsu Oy • Leitok Oy • Optics • Watches • Kauko Time AB

Hannu Närhi, Sakari Laine, Kari Ansio, Jari-Pekka Lehmuskoski, Juha Koskenseppä, Markku Keinonen, Jussi Neuvo THE TRANSFORMING EAST-WEST MARKET

Kauko East-West concentrates its We deliver Russian and other CIS Tank storage services in Hamina efforts on providing excellent service origin plastic raw materials and We provide our foreign and domestic in order to ensure full satisfaction to chemicals for the Finnish industry as customers with economical and customers and principals. well as for third countries. reliable transit solutions through Furthermore we can offer counter- Finland for products originating from Network of offices in Russia purchase services. the petrochemical and chemical Under the varying conditions of East- industries from CIS and in particular West trade, it is essential to respond Oil trading Russia. Our storage facility of 26 promptly to the constantly changing Rapid price fluctuations are tanks is located in Hamina, only operating conditions, client groups characteristic for the oil business. about 40 km from the Russian and market situations. A strong All efforts are put in the work for border, having a combined volume of presence on the market is an sourcing and purchasing of almost 100,000 m3. In Hamina we essential part of trading today, as is feedstocks, intermediates and final handle heavy and light oil products maintaining a maximum of direct products for the petrochemical as well as many liquid chemicals. contacts with both the manufacturers industry. The operations benefit from Our palette of services includes inert and end users. our accumulated trading know-how gas blanketing, heating of heavy oil and sourcing skills, with emphasis on products and various chemicals, and Our representative offices in Moscow, risk management. other operations that facilitate safe, St Petersburg, Ufa and Petrozavodsk, cost efficient handling throughout the as well as our wide network of sales Trade with third countries year. agents around the CIS are continuously monitoring the market We constantly develop our trade and acting accordingly. Long between Russia and third countries. traditions still count in trading with To facilitate the trade we also Russia and the other CIS states. Our arrange financing and handle company’s experience in East-West counter-purchase obligations. trade and our valuable business Industrial lubrication and connections assure a successful maintenance cooperation. We employ about 40 East-West trade professionals, all For transport and industry our fluent in Russian. Lubricants Department supplies high performance lubricants which also Growing exports reduce the environmental impact. As We supply technical components and an integral part of our operations we systems for various branches of offer training, technical consulting, industry in the CIS. We sell machinery analysis and measurement services and equipment for the forest and in order to ensure reliable lubrication. wood-processing industry as well as This combined maintenance service condition monitoring systems for the provides our customers with a pulp, paper, oil, gas and chemical notable advantage. industries. We are also active in the rapidly growing construction industry, supplying turnkey construction projects, construction materials and, for example, glass processing machines.

Our expanding product line includes fittings, textiles, clothing, leisure products, electronics, various consumer goods and foodstuff.

Imports for industry The main emphasis in imports is still on raw materials. From Russia and the Baltic states we import pulpwood for the forest industry, sawn timber and veneer logs. We also supply pulp from Russia to Finland and third countries.

EFFICIENT GLOBAL ORGANIZATION

Trade with China Central Europe and the Balkans made a good start in the sales of industrial chemicals, raw materials Kaukomarkkinat, a pioneer in evolving Poland is the most important and consumables. China trade, has 45 years experience individual market area where Metex is in import and export business with established as agent and importer of Waste water treatment China. Our offices in Beijing, technical products. We represent Shanghai and Guangzhou have 20 some of the world’s leading In Poland, Metex is also specialised in local employees, all specialists in their manufacturers of machinery, waste water treatment process own fields. equipment and chemicals for the solutions, in cooperation with our forest industry. German partner Hans Huber GmbH, We export machinery and equipment representing state-of-the-art to China for the mechanical and We have done well as an importer technology in this field. Finnish chemical wood-processing industries and distributor of machinery and aerators, pipes and pumps complete and for environmental protection. equipment for electrical engineering our product range. The wide variety of products we sell as well as a successful supplier of includes also medical equipment, airfield lighting and security systems. Food trade industrial filters, production lines for We are also an important supplier of In Poland Metex is an important the stone and construction material raw materials for the glass and exporter of food, particularly frozen industry, consumables and chemicals ceramics industry. berries and vegetables, fruit for the pulp and paper industry, stone concentrates, and apples to the for the monuments and building In Germany we specialise in demanding markets of Western and industry, special steels for reconditioning, upgrading and world- Northern Europe. shipbuilding, and pulp and paper. Our wide sales of roll grinding machines. supply sources are, beside Finland, We also sell complete metal surface- We are also taking the first steps to also other European countries. finishing lines. market Zimbabwean exotic fruits and fresh vegetables in the Nordic Our import comprises of clothing, Our office in Hungary markets countries. leather goods, footwear, electronics, machinery and centres for cutting and household items, food and raw processing sheet metal, electrical and materials for the food industry. forest industry products and powder coatings for metal industry. Our local market know-how supports direct purchases by Finnish importers In the Czech Republic and Slovakia from Chinese manufacturers. We also we sell consumables for the process procure from other Asian countries industry, market storage systems and such as Vietnam and Bangladesh. are building a position as importer of electrical instruments and equipment. During ten years on the Japanese market we have established our In the Balkan countries we are mainly position as a supplier of stone for the concentrating on marketing of monuments and building industry. We machinery and equipment for the export granite, log houses, building mechanical and chemical wood- materials and sawn timber to Japan. processing industry.

Metex firmly established in Southeast Asia and Africa marketing of technical products In Southeast Asia we operate in Metex has an own organisation in Singapore also covering neighbouring Central-Eastern Europe with countries like Indonesia and subsidiaries operating in Poland, Malaysia. We are specialised in Germany, Hungary, the Czech supplying high-grade sheet metal, Republic and Slovakia, specialising in profiles, pressure vessel components importing and marketing of technical and specialised products to the products. Metex also has shipbuilding industry and to project representative offices in Bulgaria, contractors for the petrochemical and Romania, Singapore and Zimbabwe. energy industries.

Even though our principals have In Southern Africa we operate in traditionally been top Finnish Zimbabwe, where we have companies, the share of Western and participated in the development of Central European principals has energy management and mechanical grown substantially. wood-processing. We have also

LEADING INTERNATIONAL BRANDED GOODS

In the import trade, Kaukomarkkinat adidas. They know that the New Feet You Wear™ Oy specializes in the import and company’s product development barefoot technology marketing in Finland of leading works tirelessly to manufacture better An excellent example of adidas’ international branded goods. The and better products. Since equipment product development is the Feet You branded products we represent are plays a decisive role in today’s top Wear™ shoes, which follow the the best in their field, products of the competition, a great deal of attention natural contours of the foot and give highest quality, in which consumers is paid to selecting precisely the right excellent feel for the playing and can place their trust when selecting equipment. All the selections are running surfaces, thus enhancing sporting and leisure goods, watches made after careful evaluation and balance and boosting performance. and home electronics as well as testing. It’s no wonder that adidas is This new technology is another great optical and photographic products. the leading brand name among top leap forwards in sport from adidas. Our best-known branded goods are athletes. adidas, Citizen, Panasonic, Polaroid, A nationwide network of dealers Rodenstock, Silhouette, and The success achieved by adidas is As an importer, we have paid special Yashica. based in large measure on its guiding attention to ensuring that there is an principle of offering those who keep fit extensive network of retailers of our Through our long-term, systematic for their own satisfaction the same number one brand in sporting and work, we have created a solid quality equipment as top athletes leisure goods - adidas - throughout foundation for our cooperation with have opted for. Lifestyle and fashion Finland. international producers of branded are also significant parts of the adidas products. An important link that philosophy. But when all is said and As the distributors of adidas complements this cooperation is our done, the important thing is to products, we have selected maximum dealer network in Finland. They are produce, for all sports lovers - from coverage through specialist sporting the leaders in their respective fields, the fitness enthusiast to the most goods shops and department stores as are the branded goods demanding competitive athlete - the as well as the sporting goods Kaukomarkkinat represents. Absolute same uncompromisingly developed departments of supermarkets. These trust and long-term cooperation with and crafted sports equipment. are points of sale where discerning the different parties involved in the consumers in search of international trade are the foundation upon which branded goods can conveniently find we build our operations. We shall famous adidas products. continue to do so in the future. adidas - three famous stripes On the sporting goods market, adidas and its symbol - the three stripes - are a concept. The importing and marketing of adidas products is handled by our subsidiary Virsu Oy, which specializes in the sporting goods trade.

The adidas pioneering tradition in the sporting goods field goes back to the 1920s, when the German shoemaker Adi Dassler made his first training shoes, thus actually creating the entire sports goods trade. This was the beginning of the adidas success story as the world’s best-known brand of sporting goods.

Today adidas and its three stripes are a combination that is known, recognized and respected everywhere people are involved in sports, exercise, competitions or general fitness. Top names go with adidas Since the days of Olympic gold medallists Jesse Owens (Berlin 1936) and Emil Zatopek (Helsinki 1952), the sporting elite have placed their trust in

CITIZEN - NUMBER ONE IN THE WATCH MARKET

Kaukomarkkinat Oy is one of Citizen - the trailblazer in watch A wide network of dealers Finland’s leading importers and fashion guarantees success marketers of watches and clocks. When choosing a Citizen, the Finnish The Citizen success story in Finland Our main representation is Citizen, consumer can be sure that his or her would not have been possible without the world’s largest manufacturer of watch is the best, not only in quality a high-class network of dealers. We watches. but also in elegance. Citizen is a have carefully built up an excellent 30 years of cooperation in Finland trendsetter in watch styles. It points and extensive network which serves the way to a style that is noticed and consumers professionally and reliably We have handled the followed. The comprehensive range in satisfying all watch requirements. distributorship in Finland with has something for every taste, a success since 1966. During these timepiece that will complement each In addition to watches, our Watch years, Finns have bought more than individual’s personal style. and Clock Department’s wide and three million Citizen watches. attractive range includes various The first in Europe to achieve The Citizen collection is extensive. It alarm, table and wall clocks. offers everything from the most market leadership A satisfied customer also after elegant designer models to the very the sale Thanks to our effective marketing latest high-tech multifunction work, Finland was the first country in watches. The servicing and spare parts service all of Europe in which Citizen for watches and clocks is handled by The world’s most sophisticated achieved market leadership. This a centralized facility at our Head watch technology breakthrough took place in the mid- Office in Espoo. The trained experts 1970s. Citizen is the market leader Citizen is at the forefront of product who work there are responsible for for watches in Finland by a clear development. An example of this is seeing to it that the watches and margin. This is proved by consumer the new Citizen Eco-Drive range of clocks brought in for servicing are surveys showing that today 37 per watches. Eco-Drive watches are handled in a flexible and professional cent of all Finns have Citizen watches powered by a photocell which manner. Our aim in every situation is on their wrists. charges up an environmentally to do things in a way that guarantees Responsibility for the Swedish friendly titanium-lithium-ion battery. continuing customer satisfaction after market too When fully charged, the battery can the watch is bought. power the watch for up to 2 - 6 Our company’s exceptional success months. in marketing Citizen on the Finnish market has not gone unnoticed in The Citizen Aqualand range is the Japan either. Cooperation with our broadest selection of diver’s watches Japanese principal is close and fruitful on the market. The features of the and we are continually enhancing it. Hyper Aqualand watch record data The esteem and trust are mutual. on the dive that can be later Citizen has put Kaukomarkkinat in downloaded direct into a PC and charge of marketing its watches in displayed on-screen or printed out. Sweden too, where we have handled the marketing of Citizen watches The Citizen group also includes the through our own subsidiary since Adec range of watches, whose 1981. competitiveness comes from its Striking a karate blow economical prices and its Citizen- in watch marketing backed quality. Citizen’s breakthrough on the Finnish market began with an attention- getting and original campaign featuring a karate blow - with a Citizen watch on the wrist. This legendary success story started with a TV advertisement that people still remember. Riding on the popularity of this campaign, the Japanese watch brand won Finnish hearts thanks to its reliability and strength.

PANASONIC - HUMAN ELECTRONICS

Our Japanese principal Matsushita Visual products are test winners Healthy and easy cooking Electric Industrial Co. Ltd. is the Matsushita is the world’s biggest In our White Line product group, world’s leading manufacturer of manufacturer of television sets. The Panasonic offers the widest available consumer electronics. Its product Quintrix picture tube of the wide range of easy-to-use automatic and range includes televisions, video Panasonic range of TVs makes them grill microwave ovens. The Panasonic equipment, stereos, personal stereos, characteristically unbeatable for their Bread Bakery has won many awards in-car entertainment systems, sharp picture and natural colours, in tests and is the undisputed market microwave ovens, bread bakeries, superb audio reproduction and leader. batteries, shavers, keyboard convenient remote control features. All instruments, computers, dictating Nicam stereo models have the unique Lightweight cleaning power machines, CD-ROM drives, GSM Panasonic 8-bit mechanism. In its mobile telephones, cameras, copiers, Panasonic vacuum cleaners are light home video equipment Panasonic is a fax machines, and telephone and efficient. They have won praise trailblazer in ease of use. answering machines. Kaukomarkkinat especially for their up to sevenfold Programming is made easy with Oy has a long-standing and solid filtering of the exhaust air, which cuts ShowView and PDC codes. business relationship with Matsushita, down the dust content of indoor air Panasonic TVs and videos have come for whom we have distributed the by 99.9%. out on top in tests both in Finland and Panasonic and Technics trademarks abroad. in Finland for more than 25 years. Digital World by Panasonic Creative fun with a video camera Panasonic is a trailblazer in Looking to the future harnessing digital technology. In Panasonic’s compact VHS-C The number of staff Matsushita 1997 we were the first on the market camcorders embody unique new dedicates to research and to launch a DVD player based on the digital technology and an image development tells you something video and audio technology of the stabilizer that eliminates jumpy about its commitment to the future: future. Our range of models also footage due to camera shake when some 27,000 engineers and scientists includes three DV format shooting. The Panasonic VHS work exclusively on developing new camcorders. camcorder is the clear market leader technologies and equipment to aid in Finland. people everywhere in the world. The company devotes some USD 6 billion Fun and enjoyment for music a year to R&D. Matsushita holds lovers some 46,000 patents. The name of Matsushita is also on a large number Panasonic in-car equipment, portable of patents for digital technology. radio-cassette players and personal stereos mean CD-quality music Customer satisfaction through reproduction anywhere you go. With lasting cooperation Technics hi-fi equipment you can build a concert hall or a home cinema. The partners we have chosen are the Technics keyboard instruments and country’s leading distributors, who pianos are for everyone from the rely on the Matsushita products we beginner to the professional musician. deal in. The names of Panasonic and Technics are found nationwide in the Hot and cold at an affordable price retail outlets of the Expert and Musta Pörssi chains as well as in other Panasonic is also the world’s leading shops. manufacturer of air-conditioning equipment. A hot new product is the We have a strong field sales air heat pump, which can save up to organization and we continually invest 50% in heating costs. In the heat of in training our dealers and supporting summer the same appliance keeps the marketing effort. We constantly the indoor air cool and fresh. aim to enhance our cooperation with our distributors. Up-to-date, interesting information on our products can also be found on the Panasonic web site at http://www.serveri.net/panasonic. Plaÿ Shop Panasonic chain now has five retail outlets in the following towns: Helsinki, Turku, Tampere, Jyväskylä and Salo.

PANASONIC - THE PROFESSIONAL’S CHOICE

Leading office automation and In the near future DVCPRO users will instruments as well as measuring and telecommunication technology be able to use the new ISDN and testing systems. ATM data communications networks Our range is comprehensive. It to transmit their visual material from Servicing guarantees customer includes GSM mobile phones, the filming site to the processing satisfaction cordless phones, telephone systems, studio regardless of distance. fax machines, photocopiers, copying Our Panasonic Service Centre has whiteboards, printers, monitors, CD- centralized responsibility for the after- ROM drives and other computer Sophisticated equipment for sales marketing of professional and peripherals as well as laptop surveillance and guarding home electronics equipment as well computers. For years Panasonic has been the as for the delivery of spare parts and The range of GSM phones has the market leader in surveillance video supplies. right choice for everyone from systems in Finland. We are able to ordinary consumers to discerning offer complete system packages for XtoX Visual Meeting - a new business users. ISDN telephone banks, post offices, retailers and dimension in presentation systems are suitable for wired phone industry. There is equipment for both Technology is developing rapidly - networks, and the KX-T900 range of area surveillance and industrial especially in telecommunication, in cordless phones has held market process control. Our specialist which our subsidiary Xenex Oy has leadership for years. products, such as microcameras, developed for the market the XtoX The elite of fax machines are can be used to solve many different system. Designed for local use in represented by the plain-paper laser monitoring problems. The new Super conference rooms and for and bubble-jet models intended Dynamic cameras developed by videoconferencing, XtoX is excellent mainly for professional work and the Panasonic now permit surveillance in for business meetings, teaching and multifunction faxes for personal use, tough backlit situations that for telemedicine applications. Based often combining the functions of a previously could not be filmed. on a core of Finnish technology, fax, phone, answering machine and Panasonic’s time-lapse VTRs are the Xenex added Panasonic monitor and copier. most extensive range on the market. camera technology to facilitate the Our range of computer peripherals use of a broad spectrum of meeting from Panasonic, the world’s leading facilities. Videoconferencing no longer monitor manufacturer, includes not Electronics for industrial requires special rooms exclusively for only 15-21 inch monitors but also customers the purpose. XtoX is based on laser and dot-matrix printers as well Our deliveries to Finnish industrial international standards and supports as -based multifunction customers include Matsushita both an optional ISDN network and devices. Other data products include electronics products, components, LAN/ATM networks. laptop computers and portable batteries, production automation CD-ROM drives. machinery, and measuring The Panasonic range also embraces artificial-intelligence copiers capable of producing 13-50 copies per minute and copying whiteboards for convenience at meetings.

Brilliance in professional video systems Panasonic is Finland’s leading brand for professional audio and video equipment. We supply video equipment ranging up to systems for broadcasting corporations. The DVCPRO format developed by Panasonic has been chosen by the world’s leading TV companies as well as the Finnish Broadcasting Company and Channel 4 in Finland. The International Olympic Committee also selected it as the production format for the year 2000 Olympics in Sydney. The product range covers camcorders and desktop tape players, as well as portable editors and portable tape players that combine the worlds of computer and video.

BRANDED PRODUCTS THAT COMBINE STYLE AND QUALITY

Better vision wide range of lens materials, include printing equipment. Our long-term a new entrant, polycarbonate. Other partnership with the principals forms an Our optical business unit, based in new items of equipment are the enduring foundation for good customer the Varisto district of Vantaa, has Rodenstock RX-520 refractometer, relations. We have imported Yashica maintained a strong position as a the NCT 400 tonometer and the cameras, for example, since 1956. manufacturer and distributor in Ecoline vision testing unit. Finland. Our range embraces all eye Panasonic batteries - for optics products and the supply Success in Finland’s demanding applications consists of unchallenged top neighbouring areas products and brand names. Our main In addition to the widest range of product groups are frames, lenses, In Estonia we have achieved market batteries on the market, the new, contact lens products, binoculars, leadership in spectacles lens environmentally friendly Panasonic sunglasses and eye-test equipment. wholesaling. Plastic and glass lenses alkaline battery produces the energy are manufactured in Estonia. needed for the digital equipment of Silhouette, Titan, Neon, adidas... tomorrow - today. Panasonic batteries - Leitok Oy - fashion in everyday tested and proven the best. Silhouette of Austria has been the clothes best-known brand of frames in Panasonic shavers - the Formula Finland for years, and our own Titan Leitok Oy specializes in casual wear. One of shaving frames have become the market- Round the world we purchase and leading titanium range. Our Neon commission low-cost clothing which Panasonic is the first manufacturer in frame range, made for us in Italy, also has the style, fabrics, colours and the world to fit its shavers with linear has a strong foothold. The adidas sizes that are right for the Finnish motors enabling the blade to make frames and sunglasses that we sell to consumer. We keep a close watch 12,000 passes per minute, ensuring a Finnish opticians represent sporty on international fashion and quickly smooth and fast shave. It can be rinsed and high-quality design. adapt it to our casual wear. Our own with water and it is used with foam, trademarks include Alaska, Bellboy, unique features of Panasonic. Safe and familiar Polaroid One Step Up, Soft Under, One Sky, Arctic, and Second Image. Polaroid is the leading brand for sunglasses in Finland. Polaroid Yashica, Contax, , sunglasses protect the wearer Panasonic, Hama, KIS, Metz against UV radiation and provide good visibility even on water - free Our strength in photography is based from glare. on a broad range of cameras, lenses, batteries, accessories and All about contact lenses photographic development and We offer contact lens users lenses and related products based on the top expertise in the field. Acuvue disposable and monthly replacement lenses are doing particularly well in gaining market share dynamically.

Swarovski binoculars and telescopes have won a leading position among birdwatchers.

Supreme quality in lens technology Almost one Finn in three who wears spectacles uses lenses made by our subsidiary Kauko-Silhu at its optical facility, where the professional staff are skilled in every stage of lens production. Our main principal is Rodenstock of Germany, one of the world’s leading manufacturers of eyewear.

Unique new instruments The Weco 3D edging instrument is capable of finishing the edges of a

LEIPURIEN TUKKU - A FOOD INDUSTRY EXPERT

Leipurien Tukku has served Finland’s questions concerning trade in alcoholic beverages. We have our own bakers for 78 years. In this time it has ingredients. The members of Bako wine cellar from which we engage in achieved dominance as a supplier of Europa also take part in promoting wholesale business in alcoholic ingredients, machinery and equipment. sales of bakery products through a beverages. Operations have been expanded into regular exchange of experience and the rest of the food industry and information on the trends in baking in We represent leading international and institutional kitchens. each country. Finnish producers: Wines: LT-Tukku Oy - the bakery trade’s Supplier of choice to the Saint Triffon, Balcan Crest, La specialized wholesaler processed food and meat industry Chablisienne, Undurraga, Papillon, Olivier Leflaive, Sancerre Frank Millet, The product range of LT-Tukku In a short time, LT-Tukku Oy’s meat Zenato. includes all the ingredients and product and processed food industry packaging supplies bakers need, unit has become a major supplier of Gourmet products: including a range of frozen foods. The ingredients, additives and raw Affco New Zealand, Gelavi S.A., Finnish and imported ingredients sold materials for the Finnish food industry. Tillmans-Hof, Intermondo, S.A.R.L. Les under the Leipurin (Baker’s) trademark In partnership with our leading Finnish Charmilles, Scanegg. guarantee the customer high quality at and foreign principals and the other a competitive price. We are the agents departments at LT-Tukku, we are able Leipurien Tukku in the Baltic states in Finland for leading manufacturers in to provide our customers with a and St Petersburg the field: complete range of high-quality We are an important supplier of goods products. Anglia Oils Limited, Aromatic AB, to the Estonian bakery and food industry and to restaurants. We Martin Braun KG, Carma AG, Cerestar In addition to our highly competitive Scandinavia A/S, Dragbaek provide a comprehensive range of products, our comprehensive services products, efficient logistics, and Margarinefabrik A/S, Frucaps, Grands also include technology consultancy, Moulins de Paris, Ireks GmbH, training & product presentation customer training and collaboration on services. We are exploring the Norlander Food AB, Sonneveld B.V. In product development on the basis of addition to these, we are able to offer opportunities for sales in the other our customers’ needs, to ensure their Baltic states. our customers a broad selection of satisfaction. convenience goods. We have registered a sales office in St We are the Finnish agents for the Petersburg and we sell raw materials LT-Tukku has a nationwide sales following international specialists: for bakeries in the city and organization. The field sales network is Cerestar Scandinavia A/S, Euricom neighbouring areas. supported by an efficient telesales S.P.A., Elliot Packaging Industries, operation. Fast and regular deliveries Griffith Laboratories B.V., Hellasnet M create the basis for successful & A Karatzis S.A., Imwiedex B.V., cooperation between the baker and Oskuda GmbH, Lactovit GmbH, LT-Tukku. Loders Croklaan B.V., Carl J. Nielsen & Son A/S, Krehalon Synclair In addition to a wide range of quality Packaging B.V., vanHesse B.V., products, we also offer our customers Raadvad A/S, Tochcello/Japan, Volk a useful array of peripheral services. Enterprises Inc. Our customer-centred product development service, our courses Kauko-Gourmet - quality, savoury which have won wide acclaim, and the treats for restaurants and trips we arrange for study and trade institutional kitchens fairs, help bakeries to enhance their skills and product ranges for their own Kauko-Gourmet’s range of products customers. Our own product embraces specialist meat products, consultants and those of our principals frozen fruit and berries, egg-based bring in the latest information on products and seasonal products that what’s happening round the world, add variety to the Finnish restaurant providing services of high standard for culture. Kaukomarkkinat Oy has acted our clients. Our pilot bakery in Espoo is as agents for wines for more than 25 a guarantee of our high-quality and years. The well-known, high-quality efficient services for today and the Bulgarian red and white wines have years ahead. now been gathered together under the brand name Saint Triffon. The symbol Our membership of Bako Europa, the on the label is the golden wine-horn of community of leading European bakery Dionysus, a Bulgarian national treasure suppliers, offers us opportunities for that dates back to 400 B.C. Our sales mutual trading as well as an inter- programme also includes Chilean, national interchange of information on French, Italian and South African

LEIPURIEN TUKKU - A LEADING SUPPLIER OF BAKERY MACHINERY

LT-Kone Oy supplies the bakery and Machinery and equipment for Smooth service food-processing industry with institutional kitchens Our reputation as a dependable machinery, equipment and production The delivery programme of LT-Kone supplier is also based on our after- lines that are manufactured either by Oy also includes equipment for sales service. LT-Kone Oy’s strengths its own Group companies or else institutional kitchens and pizza ovens. are its expert installation, imported. We manufacture bakery Operations are mainly centred on the commissioning and servicing personnel machinery and equipment at the products of the Hobart Corporation, as well as its fast spare parts deliveries. Saario factory in Hausjärvi. We are the world’s largest manufacturer of We keep more than 5,000 spare part Finland’s leading supplier of kitchen equipment. For restaurants items in stock, and in conjunction with machinery and equipment to the and institutional kitchens, we offer our principals we provide regular bakery industry and we are a major preprocessing equipment, training for our service organization supplier of equipment to other combination ovens, steam cookers, throughout the country. branches of the food processing various refrigerated and deep-freeze industry and to institutional kitchens. storage facilities, dishwashers and LT-Kone in the Baltic states automatic dishwashing systems. Our product range includes all the We have expanded operations into the machinery and equipment needed by Baltic states. Tallinn-based Leipurien LT-Kone’s Institutional Kitchen small, medium-sized and industrial- Tukku A/S in Estonia has a Department has launched a scale bakeries - from flour silos to comprehensive range of baking and dishwasher control system on the packing machines. We also offer institutional kitchen equipment in its market. The system permits fittings for minibakeries as well as a sales programme with which to supply considerable savings in water and wide and constantly growing range of the growing markets of the Baltic rim. energy consumption in tunnel baking supplies. Our principals are dishwashers. The patented device is among the world’s leading LT-Kone in St Petersburg called ICS (Intelligent Control System) manufacturers in their fields: and LT-Kone is the sole authorized For the successful start-up of our seller. The system has been very exports to Russia, we have established Hobart Corporation, warmly received and it has good a new office in St Petersburg. The BV Machinefabrik Houdijk, prospects in other parts of Europe as range provided by the St Petersburg Eurofours S.A., well. office includes a comprehensive Klöckner Hänsel Tevopharm B.V., selection of bakery and institutional Lillnord A/S, kitchen products as well as baking Mondomix Howden B.V., Rheon process consultancy. Automatic Machinery Co Ltd, Sancassiano S.p.A., Seewer AG, Sveba-Dahlen AB, Werner & Pfleiderer GmbH.

Customized in-house manufacturing LT-Kone Oy’s Saario plant designs and manufactures high-quality special machinery and production automation equipment for the bakery and preprocessed food industry. Design work and product development are carried out in close cooperation with customers. There are many patented solutions. LT-Kone’s growth strategy is based on expanding its market area and on exports in its own special areas of expertise. Examples of this are the development of industrial bread production lines, loading equipment and leavening chests.

ADDRESSES

Finland Own sales offices and subsidiaries abroad

HEAD OFFICE

Kaukomarkkinat Oy Bulgaria Hungary KAUKOMARKKINAT OY/ P.O.Box 40, Kutojantie 4 METEX Representative Office METEX HUNGARIA KFT. XENA LTD. FIN-02631 Espoo Simeonovsko Shose 57 Kecskeméti utca 4 Ul. Krasnova 1, off. 434 Phone +358 9 5211 1126 Sofia 1053 Budapest 614039 Perm Fax +358 9 521 6641 Phone +359 2 962 5242 Phone +36 1 266 6494 Phone/Fax +7 3422 306 944 Telex 124469 kauko fi 962 5347 117 4005 640 628 Cable kauko helsinki Phone/Fax +359 2 962 5348 Fax +36 1 266 6493 +359 88 504 900 Singapore Leipurien Tukku Oy Poland METEX Representative Office LT-Kone Oy P.R. China KAUKO METEX LTD 6001 Beach Road LT-Tukku Oy KAUKOMARKKINAT OY METEX HUBER LTD 17-03 Golden Mile Tower P.O.Box 127, Kutojantie 4 Representative Office METEX FOOD LTD Singapore 199589 FIN-02631 Espoo Room 750, 7th floor Ul. Kredytowa 3 Phone +65 295 5110 Phone +358 9 521 70 Hongkong Macau Centre 00-056 Warsaw +65 9634 4360 Fax +358 9 521 2121 Dongsi Shitiao Lijiaoqiao Phone +48 22 826 9011 Fax +65 295 5113 Telex 124469 kauko fi Beijing 100027 +48 391 21 364 Phone +86 10 6501 4273 Fax +48 22 826 5819 Slovak Republic Leitok Oy 6501 4293 +48 391 23 422 METEX (Slovensko) s.r.o P.O.Box 62, Kutojantie 4 6501 2288 Telex 816405 Sliascka 1 FIN-02631 Espoo Fax +86 10 6501 4275 83 102 Bratislava Phone +358 9 521 77 Telex 210528 kauko cn METEX HUBER LTD Phone +421 7 5046 101 Fax +358 9 521 2120 Ul. Aleksandry 25/167 Fax +421 7 5046 103 KAUKOMARKKINAT OY 30-837 Krakow Metex Corporation Representative Office Phone +48 12 578 102 Sweden P.O.Box 47, Kutojantie 4 Room 2411, 24th Floor, KAUKO TIME AB FIN-02631 Espoo South Tower Rumania Smidesvägen 10-12, Solna Phone +358 9 521 789 Guangzhou World Trade Centre METEX Representative Office Box 1385 Fax +358 9 521 6615 No. 371-375 Huanshi Dong Road c/o S.C. Decagon S.A. S-171 27 Solna Telex 124521 metex fi Guangzhou 510060 Dtr. 11 Junie, nr. 66 Phone +46 8 280 300 Phone +86 20 8778 0918 Bucharest Fax +46 8 627 0093 Xenex Oy Fax +86 20 8778 7708 Phone +40 1 335 0469 P.O.Box 61, Kutojantie 4 Fax +40 1 337 1927 Zimbabwe FIN-02631 Espoo KAUKOMARKKINAT OY Ms. Yrsa Lindholm Phone +358 9 521 785 Representative Office Russia P.O.Box 5300 Fax +358 9 521 5444 Room 504, West Tower KAUKOMARKKINAT OY Harare Sun Plaza Representative Office Phone +263 4 757 741 88 Xian Xia Road Kursovoj pereulok 9, kv 2 752 931 OTHER DOMESTIC Shanghai 200335 119034 Moscow 750 498 OFFICES Phone +86 21 6270 0640/1/2 Phone +7 095 564 8401/2/3/4 Fax +263 4 757 744 Fax +86 21 6270 0872 Fax +7 095 564 8447 Telex 26109 fintra zw Kaukomarkkinat Oy 564 8497 Optical Department Czech Republic P.O.Box 54, METEX CZ KAUKOMARKKINAT OY Martinkyläntie 54 Vinohradská 89/90 Representative Office FIN-01721 Vantaa 130 00 Prague 3 Torzhkovskaya 5, Off. 503 Phone +358 9 852 9959 Phone +420 2 7173 2181 197342 St. Petersburg Fax +358 9 852 99573 +420 603 460 649 Phone/Fax +7 812 242 0018 Fax +420 2 6731 1126 +7 812 325 2634 Kaukomarkkinat Oy Transit Tank Farm Estonia LEIPURIEN TUKKU LRS OOO Öljysatamantie 7 FOCUS EESTI A/S Torzhkovskaya 5 FIN-49460 Hamina Punane tn. 61 197342 St. Petersburg Phone +358 5 230 3330 EEOO36 Tallinn Phone +7 812 327 4378 Fax +358 5 230 3360 Phone +372 6 324 335 Phone/Fax +7 812 242 0042 Fax +372 6 321 735 Kauko-Silhu Oy KAUKOMARKKINAT OY P.O.Box 102, LEIPURIEN TUKKU AS Representative Office Martinkyläntie 54 Betooni 6 Ul. Andropova, 2/24 FIN-01721 Vantaa EEOO14 Tallinn 185035 Petrozavodsk Phone +358 9 852 991 Phone +372 6 201 485/6 Karelia Fax +358 9 854 3053 Fax +372 6 201 487 Phone +7 814 27 75988 Phone/fax+7 814 27 74964 LT-Kone Oy Germany +358 13 677 622 Saario Factory METEX (Deutschland) GmbH Telex 165146 cauco ru Itätie 6 Industriepark Nord FIN-12240 Hikiä 04610 Meuselwitz KAUKOMARKKINAT OY Phone +358 19 768 451 Phone +49 3448 82 616 Representative Office Fax +358 19 768 006 82 610 Ul. K. Marksa 67, kv. 74, +49 172 901 3726 450015 Ufa 1998 Virsu Oy Fax +49 3448 82 612 P.O.Box 8, 450078 Ufa, P.O.Box 32, Orapihlajatie 33 Bashkiria ISO 9002

FIN-00321 Helsinki METEX (Deutschland) GmbH Phone +7 347 902 8295 Phone +358 9 521 333 Büro Dresden Fax/Phone +7 347 2 503 382 Fax +358 9 521 3380 Bertolt-Brecht-Allee 24 01309 Dresden Phone +49 351 3199 3240 +49 172 717 2815 Lönnberg F.G. Fax +49 351 3199 3241 24 P.O.Box 40, Kutojantie 4 FIN-02631 Espoo, Finland Cable kauko helsinki Telex 124469 kauko fi Fax +358 9 521 6641 Phone +358 9 5211