2009-08-03 13:00:00 CEST
2009-08-03 13:00:02 CEST
REGULATED INFORMATION
Ilkka-Yhtymä Oyj - Interim report (Q1 and Q3)
Ilkka-Yhtymä Oyj's Interim Report for Q2/2009
Ilkka-Yhtymä Oyj Interim Report 3 August 2009, at 2:00pm ILKKA-YHTYMÄ OYJ'S INTERIM REPORT FOR Q2/2009 JANUARY-JUNE 2009 - Net sales: EUR 24.6 million (EUR 27.6 million), down 10.9% - Operating profit: EUR 4.2 million (EUR 5.4 million), down 22.5% - Operating profit: 16.9% of net sales (19.5%) - Pre-tax profit: EUR 7.0 million (EUR 12.0 million), down 41.1% - Earnings per share: EUR 0.41 (EUR 0.74) APRIL-JUNE 2009 - Net sales: EUR 12.6 million (EUR 14.2 million), down 11.2% - Operating profit: EUR 2.4 million (EUR 2.6 million), down 9.4% - Operating profit: 18.8% of net sales (18.4%) - Pre-tax profit: EUR 3.3 million (EUR 2.5 million), up 32.1% - Earnings per share: EUR 0.17 (EUR 0.14) NET SALES AND DEVELOPMENT OF RESULTS The Group's consolidated net sales for January-June showed a 10.9% decline. Net sales came to EUR 24.6 million (EUR 27.6 million in the corresponding period of the previous year). External net sales from the publishing business fell by 11.0%. Advertising revenues fell 19.4%, while circulation revenues grew by 2.2%. External net sales from the printing business fell by 10.3%. Circulation income accounted for 38% of consolidated net sales, while advertising income and printing income represented 42% and 19%, respectively. For Q2, net sales fell by 11.2% and totalled EUR 12.6 million (EUR 14.2 million). External net sales from the publishing business fell by 9.9%, and advertising revenues fell by 17.7%. Circulation revenues, by contrast, grew by 3.0%. External net sales from the printing business fell by 16.5%. Circulation income accounted for 38% of consolidated net sales in April-June, while advertising income and printing income represented 43% and 19%, respectively. Other operating income in January-June totalled EUR 0.2 million (EUR 0.4 million) and in April-June EUR 0.1 million (EUR 0.1 million). Operating expenses for January-June amounted to EUR 20.6 million (EUR 22.7 million), down by 8.9% year on year. For April-June, operating expenses amounted to EUR 10.3 million (EUR 11.7 million), down 11.8%. Not counting depreciation included in the operating expenses, all other expenses were reduced during the reporting period and in the second quarter. As a result of co-determination negotiations conducted in Ilkka-Yhtymä Group in March, arrangements concerning holiday pay were negotiated with the staff. The arrangements are expected to bring savings of approximately EUR 1 million, with a single cost reduction of EUR 0.6 million being recorded in personnel costs during Q1 and EUR 0.2 million during Q2. The rest of the cost savings will be recorded by 31 March 2010. Other operating costs decreased as a result of measures taken to enhance business efficiency. Consolidated operating profit for the period under review came to EUR 4.2 million (EUR 5.4 million), accounting for 16.9 per cent (19.5 per cent) of net sales. The operating profit for publishing fell by EUR 1.7 million (35.9%) and, that for printing business increased by EUR 0.1 million (5,1%). Operating profit for the second quarter came to EUR 2.4 million (EUR 2.6 million), accounting for 18.8 per cent (18.4 per cent) of net sales. In the second quarter, the operating profit for publishing operations fell by EUR 0.7 million (31.1%). The operating profit for printing increased by EUR 0.2 million (23.5%). Net financial income for January-June amounted to EUR 2.9 million (EUR 6.6 million), with financial assets at fair value through profit or loss accounting for EUR 0.5 million (a negative EUR 0.4 million) and available-for-sale assets for EUR 2.7 million (EUR 7.2 million). Gains from available-for-sale financial assets include EUR 2.3 million (EUR 6.9 million) in dividend income from Alma Media Corporation. Interest expenses totalled EUR 0.5 million (EUR 0.6 million). Net financial income for April-June amounted to EUR 0.9 million (EUR 0.2 million to the negative), financial assets at fair value through profit or loss accounting for EUR 0.5 million of this (EUR 0.1 million of the loss) and available-for-sale assets for EUR 0.3 million (EUR 0.3 million). Interest expenses for April-June amounted to EUR 0.2 million (EUR 0.5 million). The associated companies' share in the result for January-June was EUR 0.02 million (EUR 0.04 million). Pre-tax profits totalled EUR 7.0 million (EUR 12.0 million). Direct taxes amounted to EUR 1.1 million (EUR 1.1 million), and the Group's net profit for the period totalled EUR 5.9 million (EUR 10.9 million). The Group's net profit for the second quarter totalled EUR 2.5 million (EUR 2.0 million). BALANCE SHEET AND FINANCING The consolidated balance sheet total came to EUR 76.2 million (EUR 109.4 million), with EUR 23.9 million (EUR 49.6 million) of equity. The fair value reserve decreased by EUR 29.9 million year on year. At the start of 2009, the value of the fair value reserve had decreased by EUR 0.7 million, because of the decrease in the value of Alma Media shares. The number of Alma Media shares held by Ilkka-Yhtymä Group at the end of June 2009 was 7,718,991. The total purchase price was EUR 69.7 million, and the shares' value, based on a 30 June share price of EUR 4.86, was EUR 37.5 million. Interest-bearing liabilities at the end of the reporting period came to EUR 40.0 million (EUR 46.0 million). The equity ratio was 33.5 per cent (47.5 per cent). Liquid assets totalled EUR 3.9 million (EUR 3.7 million). The cash flow of operations for the review period totalled EUR 7.6 million (EUR 7.9 million), while the investment cash flow came to EUR 1.9 million (a negative EUR 48.1 million). SHARES The series-I shares of Ilkka-Yhtymä Oyj were listed on the Helsinki Stock Exchange in 1981 and have been listed ever since. The series-II shares have been listed since their issue in 1988, and on 10 June 2002 they were listed on the Main List of the Helsinki Stock Exchange. At present, the series-II shares of Ilkka-Yhtymä Oyj are listed on the NASDAQ OMX Helsinki List, in the Consumer Discretionary sector, the company's market value being classified as Mid Cap. The series-I shares are listed on the Pre List. In January-June, 37,014 series-I shares of Ilkka-Yhtymä Oyj were traded, accounting for 0.9 per cent of the total number of series-I shares. The total value of the shares exchanged was EUR 0.3 million. In total, 194,880 series-II shares were traded, corresponding to 1.9 per cent of the total number of series‑II shares. The total value of the shares traded was EUR 1.5 million. The lowest price at which series-I shares of Ilkka-Yhtymä Oyj were traded during the period under review was EUR 7.45, and the highest per-share price was EUR 11.49. The lowest price at which series-II shares were traded was EUR 6.80 and the highest EUR 8.56. The market value of the share capital at the closing rate for the reporting period was EUR 103.4 million. PERSONNEL The Group had an average of 370 (387) employees during the period. Pohjalainen Chief Editor Markku Mantila took up the position of chief editor at Kaleva in March 2009. Arno Ahosniemi, M.Soc.Sc. (age 31), from Brussels, was appointed as the new editor-in-chief of Pohjalainen. Ahosniemi joined Vaasa Oy in June 2009. Owing to the changed market situation, employee co-determination negotiations have been conducted within Ilkka-Yhtymä Group as a result of reduced volumes in advertising sales and the printing business. These negotiations started on 12 March 2009 and were concluded on 2 April 2009. The negotiations resulted in an arrangement concerning holiday pay, which was agreed upon with the staff. The negotiations conducted in the Group's sheet and newsprint company, I-print Oy, resulted in an arrangement concerning holiday pay and the redundancy of six employees for production reasons. These arrangements are expected to yield cost savings of approximately EUR 1 million, with a single cost reduction of EUR 0.6 million being recorded in personnel costs during Q1 and approximately EUR 0.2 million in Q2. The rest of the cost savings will be recorded by 31 March 2010. A development plan was launched in the spring of 2009 to prepare Ilkka-Yhtymä Group for the worsening market situation caused by the extended recession. At its meeting of 25 May 2009, the Ilkka-Yhtymä Oyj Board of Directors decided to consolidate the Group's publishing operations, which are currently being carried out in three different companies, in one company, whose principal offices will be in Vaasa and Seinäjoki, as of the beginning of 2010. This change emphasises the role of the various newspaper brands - Ilkka and Pohjalainen, as well as local papers and free sheets - in their respective areas of circulation. This decision is related to the Group's ongoing development programme for 2010-2011. The aim of this change is to safeguard the profitability and competitiveness of the Group's multi-channel newspapers and the printing operations. The Group's publishing operations will be developed in a customer-oriented manner through increased efficiency of internal processes, via networking, and through adaptation of systems and structures to support these operations. CORPORATE GOVERNANCE AND THE ANNUAL GENERAL MEETING On 27 April 2009, the Annual General Meeting of Ilkka-Yhtymä Oyj approved the financial statements, discharged the managing director and the members of the Supervisory Board and Board of Directors from liability, and decided that a per‑share dividend of EUR 0.30 shall be paid for the 2008 financial year. In accordance with Chapter 13, Section 6, Paragraph 2 of the Finnish Limited Liability Companies Act, the Annual General Meeting authorised the Board to decide upon the distribution of additional dividends of a maximum of EUR 0.20 per share. The total dividend for the 2008 financial year under this authorisation may be no more than EUR 0.50 per share. The authorisation includes a right for the Board of Directors to decide upon all other conditions pertaining to the distribution of dividends. The authorisation will be valid until the next ordinary annual general meeting of shareholders. The number of members of the Supervisory Board for 2009 was confirmed to be 27. Of the Supervisory Board members whose term had come to an end, the following were re-elected for the term ending in 2013: Markku Akonniemi of Töysä, Alpo Joensuu of Kuortane, Heikki Järvi-Laturi of Teuva, Petri Latva-Rasku from Tampere, and Marja Vettenranta of Laihia. Ylivieska's Juhani Hautamäki and employee representatives Petri Taipale and Seija Peitso (both of Seinäjoki) were elected as new members of the Supervisory Board. At the Annual General Meeting, it was decided to maintain the payments made to the chairman and other members of the Supervisory Board at their current level: the chairman will receive a retainer of EUR 1,000 per month and a fee of EUR 350 per meeting, and the other members will be paid a fee of EUR 350 per meeting attended. The board members' travel expenses are reimbursed in accordance with the current maximum level specified by the tax authorities. Ernst & Young Oy, Authorised Public Accountants, was elected as the auditor, with authorised public accountants Tomi Englund and Marja Huhtala as the chief auditors. Authorised public accountants Päivi Virtanen and Johanna Winqvist‑Ilkka were elected as deputy auditors. It was decided that the auditors would be reimbursed per their invoice. The Annual General Meeting decided that the Group's 31 December 2008 reserve fund is to be reduced by EUR 12,837,354.95. The amount of the reduction will be transferred to the invested non-restricted equity fund. After the reduction, the reserve fund's value will amount to zero. The reduction of the reserve fund requires a notice and registration procedure per Chapter 14, paragraphs 3-5 of the Finnish Limited Liability Companies Act. On 25 May 2009, the Supervisory Board re-elected Sari Mutka, whose term had come to an end, to the Board of Directors of Ilkka-Yhtymä Oyj. Heikki Kuoppamäki will continue as the chairman of the Supervisory Board, while Perttu Rinta will continue as vice-chairman. At its membership meeting, the Board of Directors re‑elected Seppo Paatelainen as its chairman, while Timo Aukia will continue as vice-chairman. RISKS AND RISK MANAGEMENT The general economic uncertainty and recession continue to affect volumes in the media advertising and printing business more than in 2008. Apart from the actual decline in media advertising, no other significant risks are predicted in the near future for the publishing and printing business. Other business risks are discussed in more detail in the 2008 Annual Report. I-print Oy and HSS Media Oy have a long-term printing contract that entered into force on 1 January 2000 and will expire on 31 December 2009. In April 2009, HSS Media announced that the printing of its newspapers will be transferred to a joint venture of Keski-Pohjanmaan Kirjapaino Oyj and HSS Media. The new printing establishment will be located in Kokkola and will commence operations after mid‑2010, in accordance with the participants' notification. I-print Oy and HSS Media Oy are negotiating extension of their current printing contract to the summer of 2010. After this, maintaining the current utilisation rate of the printing capacity at I-print's printing press in Vaasa, the main facility where the newspapers of HSS-Media are printed, will be challenging. Thus far in the term of the contract, HSS-Media's newspapers have accounted for around 10% of I‑print Oy's annual net sales. The Group has EUR 40.0 million in interest-bearing loans, EUR 37.7 million of which are long-term. The interest rate risk is controlled by taking out both fixed-rate and floating-rate loans. On 30 June 2009, the interest on 26% of the loans was fixed-rate and on 74% was floating-rate. The loans' maturity ranges from four to six years. A change of one percentage point in the interest rate would affect the Group's financial expenses by EUR 0.3 million. The number of Alma Media shares held by Ilkka-Yhtymä Group at the end of June 2009 was 7,718,991. The purchase price totalled EUR 69.7 million, and the value, based on a share price of EUR 4.86 (30 June), was EUR 37.5 million. The valuation loss on shares (EUR 32.2 million) has been recorded in shareholders' equity under the fair value reserve. Were the value of these shares to change by 20 per cent, the change in equity would equal EUR 7.5 million. EVENTS AFTER THE REPORTING PERIOD ILKKA-YHTYMÄ OYJ AGREED ON INCREASING ITS HOLDING IN ALMA MEDIA CORPORATION, CALLED AN EXTRAORDINARY GENERAL MEETING, AND PLANNED A SHARE ISSUE OF UP TO EUR 40 MILLION TO CURRENT SHAREHOLDERS On 1 July 2009, Ilkka-Yhtymä Oyj (hereinafter ‘Ilkka-Yhtymä' or ‘the Company') signed a conditional agreement with Skandinaviska Enskilda Banken AB (publ.)'s Helsinki branch regarding the purchase of an aggregate of 7,500,000 shares in Alma Media Corporation (hereinafter ‘Alma Media') at a per‑share price of EUR 4.75. Said shares (hereinafter ‘Shares') correspond to 10.05 per cent of Alma Media's shares and votes. The purchase of Alma Media shares agreed on is conditional upon approval by the Ilkka-Yhtymä Extraordinary General Meeting (EGM) to be held on 10 August 2009 of an authorisation to issue new shares in the company in connection with the refinancing, as well as certain technical amendments to the Company's Articles of Association. Upon fulfilment of the conditions, the purchase of the shares will be executed immediately following the EGM, through the OMX Nordic Exchange Helsinki. Should the condition not be met, the option for purchase of the shares will expire. A separate announcement of the execution of the purchase will be released after the EGM. Further, the agreement includes certain additional conditions related to the time between the signing and execution of the agreement for the purchase of shares, including the condition that in the event that, during said period, a third party makes an offer to all Alma Media shareholders to purchase all of the shares in Alma Media Corporation for a price substantially higher than the purchase price agreed on for the Shares and provided also that certain other conditions agreed upon by the parties are fulfilled, the purchase of shares may be withdrawn on certain agreed conditions. In such a case, however, Ilkka-Yhtymä will always receive compensation at least for costs related to the execution of the transaction and the associated financing arrangements. On 1 July 2009, the Ilkka-Yhtymä Board of Directors approved the transaction and decided to make the above-mentioned proposals to the EGM. The Supervisory Board of the Company has decided to convene an Extraordinary General Meeting on 10 August 2009. The notice of the EGM was published in a stock exchange release on 10 July 2009. The proposals of the Board of Directors are available in their entirety in Finnish on Ilkka-Yhtymä's Web site (www.ilkka-yhtyma.fi > Sijoittajat > Yhtiökokous > Ylimääräinen yhtiökokous 2009). Shareholders representing approximately 25 per cent of Ilkka-Yhtymä's shares and approximately 30 per cent of votes (approximately 30 per cent of series-I shares and votes and approximately 20 per cent of series-II shares and votes) have announced that they support the board's proposals. Upon completion of the purchase, Ilkka-Yhtymä's holdings in Alma Media will increase from the present 10.35 per cent to 20.40 per cent, making it the largest individual owner of Alma Media. The agreed increase in holdings supports the execution of Ilkka-Yhtymä's growth strategy. Ilkka-Yhtymä's objective is to be a long-term owner of Alma Media while participating in the development of the company's future operations. If the share transaction materialises as agreed, Alma Media will become an associated company of Ilkka-Yhtymä and will be incorporated into its consolidated financial statements as an associated company as of the effective date of the deal. In the interim report for Q2/2009, the fair value reserve under shareholders' equity includes EUR 32.2 million of valuation losses for Alma Media shares. Upon completion of the agreed purchase, the change in the value of the Alma Media shares owned by Ilkka-Yhtymä will be recorded as a non‑recurring item through profit or loss in the interim report for Q3/2009, after which the change in value will be reported through profit or loss on the basis of a fair value test in accordance with the International Financial Reporting Standards (IFRS). As of the interim report for the third quarter, Ilkka-Yhtymä's share of Alma Media's profit will be reported in Ilkka-Yhtymä's profit. According to the current understanding of the Board of Directors, this non‑recurring write-down will not jeopardise the Company's dividend payment ability. The intended share transaction will be financed on a temporary basis through a debt-financing-type loan arrangement. If the EGM of Ilkka-Yhtymä approves the board's proposals and the transaction materialises, the Board of Directors, under the EGM's authorisation, shall act on its intention to carry out a share issue of up to EUR 40 million directed at the Company's shareholders with a full subscription guarantee. In this share issue, new series-II shares of the Company would be offered in accordance with Section 2 of the Articles of Association so that current holders of series-I and series-II shares will have a pre-emptive right to subscribe for the new shares. The Company intends to use the funds collected through the planned share issue to repay the short-term loans taken out to finance the purchase of Alma Media shares as well as to strengthen the Company's capital structure. The Company intends to carry out the share issue in the autumn of 2009. Ilmarinen Mutual Pension Insurance Company, Tapiola General Mutual Insurance Company, and certain other shareholders together representing approximately 13 per cent of Ilkka-Yhtymä's shares have committed to subscribing for their pro rata share of the new series-II shares available for subscription upon realisation of the share issue. Furthermore, Nordea Bank Finland Plc, Ilmarinen Mutual Pension Insurance Company, and Tapiola General Mutual Insurance Company have committed to subscribe for any new series-II shares that have not been subscribed for upon actualisation of the share issue, in accordance with normal terms. In all cases, Ilmarinen Mutual Pension Insurance Company's share of Ilkka-Yhtymä's shares and votes will remain under 10 per cent. Nordea Corporate Finance will act as a financial adviser to Ilkka-Yhtymä and as the lead manager of the planned share issue. FLAGGING ANNOUNCEMENTS As a result of a share purchase completed on 14 July 2009, Keskisuomalainen Oyj's holding of Ilkka-Yhtymä Oyj share capital increased to 5.4378 per cent of share capital and 0.8269 per cent of voting rights. OUTLOOK FOR 2009 Forecasting the impact of the recession on media advertising and circulation and on printing volumes in 2009 continues to be difficult. In 2009, media advertising will decline in Finland as a result of the recession. In spite of consumer wariness, newspapers' circulation income is predicted to enjoy slight growth due to price increases. Printing volumes have fallen as reduced media advertising leads to reductions in numbers of pages. Alongside printing volumes decreasing, the competition will become even more intense. The net sales of Ilkka-Yhtymä Group will decrease as the recession cuts demand for publishing and printing services. Operating profit, in absolute terms and as a percentage of net sales, is expected to drop significantly despite the rationalisation measures under way. The year's results will depend on the operating profit and on the dividend income from available-for-sale financial assets, interest rate trends, trading in securities, and the price performance of securities investments. The result for the full year will be significantly weaker than that for 2008. If the conditional share transaction materialises in line with the agreement signed on 1 July 2009, Alma Media will become an associated company of Ilkka‑Yhtymä and will be covered by its consolidated financial statements as an associated company as of the effective date of the deal. In the interim report for Q2/2009, the fair value reserve under shareholders' equity includes EUR 32.2 million of valuation losses in Alma Media shares. Upon completion of the agreed purchase, the change in value of the Alma Media shares owned by Ilkka‑Yhtymä will be recorded as a non-recurring item through profit or loss in the interim report for Q3/2009, after which the change in value will be reported through profit or loss on the basis of a fair value test in accordance with the International Financial Reporting Standards. As of the interim report for the third quarter, Ilkka-Yhtymä's share of Alma Media's profit will be reported in Ilkka-Yhtymä's profit. SUMMARY OF FINANCIAL STATEMENTS AND NOTES Reporting This interim report, issued by Ilkka-Yhtymä Group, was prepared in accordance with the requirements of the IAS 34 Interim Financial Reporting standard. The Group has since 1 January 2009 complied with the following new or updated standards: - IFRS 8 Operating Segments. The Group's operating segments continue to be Publishing and Printing. From 1 January 2009, assets allocated to the segments and associated income were changed to correspond with internal reporting, in accordance with IFRS 8. Following the change, certain properties will no longer be allocated to operating segments; instead, they shall be assigned to the non‑allocated group. The 2008 reference data for segment information have been corrected to match the new accounting principles. - IAS 1 Presentation of Financial Statements. The changes will have an impact on the way the income statement and the changes in shareholders' equity have been presented. - IAS 23 Borrowing Costs. The change has no impact on the interim report. In other respects, the interim report was compiled in compliance with the same accounting principles as the previous financial reports. The principles and formulae for calculation of the indicators, presented on page 63 of the 2008 annual report, remain unchanged. The figures in the interim report have been presented unaudited. CONSOLIDATED INCOME STATEMENT -------------------------------------------------------------------------------- | (EUR 1,000) | 4-6/ | 4-6/ | Change | 1-6/ | 1-6/ | Change | 1-12/ | | | 2009 | 2008 | | 2009 | 2008 | | 2008 | -------------------------------------------------------------------------------- | NET SALES | 12 616 | 14 209 | -11 % | 24 621 | 27 632 | -11 % | 55 384 | -------------------------------------------------------------------------------- | Change in | -23 | -4 | 486 % | -8 | -1 | 765 % | -1 | | inventories | | | | | | | | | of finished | | | | | | | | | and | | | | | | | | | unfinished | | | | | | | | | products | | | | | | | | -------------------------------------------------------------------------------- | Other | 99 | 109 | -9 % | 194 | 403 | -52 % | 626 | | operating | | | | | | | | | income | | | | | | | | -------------------------------------------------------------------------------- | Materials | -3 899 | -4 303 | -9 % | -7 809 | -8 318 | -6 % | -17 082 | | and services | | | | | | | | -------------------------------------------------------------------------------- | Employee | -4 190 | -4 700 | -11 % | -8 334 | -9 360 | -11 % | -18 016 | | benefits | | | | | | | | -------------------------------------------------------------------------------- | Depreciation | -793 | -712 | 11 % | -1 601 | -1 417 | 13 % | -2 961 | -------------------------------------------------------------------------------- | Other | -1 439 | -1 983 | -27 % | -2 895 | -3 565 | -19 % | -7 221 | | operating | | | | | | | | | costs | | | | | | | | -------------------------------------------------------------------------------- | OPERATING | 2 371 | 2 616 | -9 % | 4 168 | 5 375 | -22 % | 10 728 | | PROFIT | | | | | | | | -------------------------------------------------------------------------------- | Financial | 883 | -177 | 599 % | 2 856 | 6 553 | -56 % | 4 840 | | income and | | | | | | | | | expenses | | | | | | | | -------------------------------------------------------------------------------- | Share of | 11 | 33 | -67 % | 24 | 42 | -43 % | 48 | | associated | | | | | | | | | companies' | | | | | | | | | profit | | | | | | | | -------------------------------------------------------------------------------- | PROFIT | 3 266 | 2 473 | 32 % | 7 048 | 11 971 | -41 % | 15 616 | | BEFORE TAXES | | | | | | | | -------------------------------------------------------------------------------- | Income tax | -729 | -492 | 48 % | -1 103 | -1 113 | -1 % | -2 086 | -------------------------------------------------------------------------------- | PROFIT FOR | 2 537 | 1 981 | 28 % | 5 946 | 10 858 | -45 % | 13 530 | | THE PERIOD | | | | | | | | | UNDER REVIEW | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | 0.17 | 0.14 | 28 % | 0.41 | 0.74 | -45 % | 0.92 | | share, | | | | | | | | | undiluted | | | | | | | | | (EUR)*) | | | | | | | | -------------------------------------------------------------------------------- *) There are no factor diluting the figure. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME -------------------------------------------------------------------------------- | (EUR 1,000) | 4-6/ | 4-6/ | Change | 1-6/ | 1-6/ | Change | 1-12/ | | | 2009 | 2008 | | 2009 | 2008 | | 2008 | -------------------------------------------------------------------------------- | PROFIT FOR | 2 537 | 1 981 | 28 % | 5 946 | 10 858 | -45 % | 13 530 | | THE PERIOD | | | | | | | | | UNDER REVIEW | | | | | | | | -------------------------------------------------------------------------------- | OTHER | | | | | | | | | COMPREHENSIV | | | | | | | | | E INCOME: | | | | | | | | -------------------------------------------------------------------------------- | Available-fo | -2 856 | 785 | -464 % | -695 | -14 186 | -95 % | -42 562 | | r-sale | | | | | | | | | assets | | | | | | | | -------------------------------------------------------------------------------- | Income tax | | -204 | -100 % | | 3 688 | -100 % | 2 874 | | related to | | | | | | | | | components | | | | | | | | | of other | | | | | | | | | comprehensiv | | | | | | | | | e income | | | | | | | | -------------------------------------------------------------------------------- | Other | -2 856 | 581 | -592 % | -695 | -10 498 | -93 % | -39 688 | | comprehensiv | | | | | | | | | e income, | | | | | | | | | net of tax | | | | | | | | -------------------------------------------------------------------------------- | TOTAL | -319 | 2 562 | -112 % | 5 251 | 360 | 1358 % | -26 158 | | COMPREHENSIV | | | | | | | | | E INCOME FOR | | | | | | | | | THE PERIOD | | | | | | | | -------------------------------------------------------------------------------- Shares in Alma Media, 10.3% owned for longer than one year; a tax claim has not been recorded for the period. CONSOLIDATED BALANCE SHEET -------------------------------------------------------------------------------- | (EUR 1,000) | 6/2009 | 6/2008 | Change | 12/2008 | -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | | -------------------------------------------------------------------------------- | Intangible rights | 898 | 723 | 24 % | 723 | -------------------------------------------------------------------------------- | Goodwill | 314 | 314 | | 314 | -------------------------------------------------------------------------------- | Investment property | 477 | 589 | -19 % | 531 | -------------------------------------------------------------------------------- | Property, plant and equipment | 18 546 | 20 395 | -9 % | 19 805 | -------------------------------------------------------------------------------- | Shares in associated companies | 558 | 528 | 6 % | 533 | -------------------------------------------------------------------------------- | Available-for-sale assets | 42 722 | 73 069 | -42 % | 43 316 | -------------------------------------------------------------------------------- | Non-current trade and other | 58 | 39 | 49 % | 39 | | receivables | | | | | -------------------------------------------------------------------------------- | Other tangible assets | 214 | 214 | | 213 | -------------------------------------------------------------------------------- | Deferred tax asset | | 815 | | | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 63 787 | 96 685 | -34 % | 65 476 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Inventories | 874 | 793 | 10 % | 930 | -------------------------------------------------------------------------------- | Trade and other receivables | 4 563 | 4 910 | -7 % | 3 287 | -------------------------------------------------------------------------------- | Income tax assets | 941 | 1 700 | -45 % | 2 030 | -------------------------------------------------------------------------------- | Financial assets at fair value | 2 216 | 1 611 | 38 % | 2 285 | | through profit or loss | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | 3 857 | 3 683 | 5 % | 2 321 | -------------------------------------------------------------------------------- | TOTAL Current assets | 12 451 | 12 696 | -2 % | 10 852 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total assets | 76 238 | 109 381 | -30 % | 76 328 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND | | | | | | LIABILITIES | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDER'S EQUITY | | | | | -------------------------------------------------------------------------------- | Share capital | 3 666 | 3 666 | | 3 666 | -------------------------------------------------------------------------------- | Fair value reserve and other | -19 342 | 10 543 | -283 % | -18 647 | | reserves | | | | | -------------------------------------------------------------------------------- | Retained earnings | 39 610 | 35 392 | 12 % | 38 064 | -------------------------------------------------------------------------------- | SHAREHOLDER'S EQUITY | 23 934 | 49 601 | -52 % | 23 083 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | | | -------------------------------------------------------------------------------- | Deferred tax liability | 1 643 | 1 702 | -3 % | 1 758 | -------------------------------------------------------------------------------- | Non-current interest-bearing | 37 749 | 40 022 | -6 % | 37 749 | | liabilities | | | | | -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | 39 392 | 41 724 | -6 % | 39 508 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | | | -------------------------------------------------------------------------------- | Current interest-bearing | 2 273 | 5 978 | -62 % | 5 858 | | liabilities | | | | | -------------------------------------------------------------------------------- | Accounts payable and other | 9 641 | 10 590 | -9 % | 7 734 | | payables | | | | | -------------------------------------------------------------------------------- | Income tax liability | 997 | 1 488 | -33 % | 146 | -------------------------------------------------------------------------------- | CURRENT LIABILITIES | 12 911 | 18 056 | -28 % | 13 738 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND | 76 238 | 109 381 | -30 % | 76 328 | | LIABILITIES TOTAL | | | | | -------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW STATEMENT -------------------------------------------------------------------------------- | (EUR 1,000) | 1-6/ | 1-6/ | 1-12/ | | | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- | CASH FLOW FROM OPERATIONS | | | | -------------------------------------------------------------------------------- | Profit for the period under review | 5 946 | 10 858 | 13 530 | -------------------------------------------------------------------------------- | Adjustments | -183 | -4 410 | -181 | -------------------------------------------------------------------------------- | Change in working capital | 1 071 | 1 674 | -126 | -------------------------------------------------------------------------------- | CASH FLOW FROM OPERATIONS | 6 833 | 8 122 | 13 223 | | BEFORE FINANCE AND TAXES | | | | -------------------------------------------------------------------------------- | Financial income and expenses | 41 | 2 215 | 1 138 | -------------------------------------------------------------------------------- | Direct taxes paid | 722 | -2 418 | -5 006 | -------------------------------------------------------------------------------- | CASH FLOW FROM OPERATIONS | 7 596 | 7 919 | 9 355 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM INVESTMENTS | | | | -------------------------------------------------------------------------------- | Investments in tangible and | -668 | -2 603 | -3 242 | | intangible assets, net | | | | -------------------------------------------------------------------------------- | Other investments, net | -101 | -52 588 | -52 593 | -------------------------------------------------------------------------------- | Dividends received from investments | 2 661 | 7 129 | 7 237 | -------------------------------------------------------------------------------- | CASH FLOW FROM INVESTMENTS | 1 873 | -48 062 | -48 598 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW BEFORE FINANCING ITEMS | 9 470 | -40 144 | -39 243 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM FINANCING | | | | -------------------------------------------------------------------------------- | Change in current loans | -3 585 | 5 978 | 2 000 | -------------------------------------------------------------------------------- | Change in non-current loans | | 40 022 | 41 607 | -------------------------------------------------------------------------------- | Dividends paid and other profit | -4 348 | -14 569 | -14 440 | | distribution | | | | -------------------------------------------------------------------------------- | CASH FLOW FROM FINANCING | -7 933 | 31 431 | 29 167 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INCREASE (+) OR DECREASE (-)IN | 1 537 | -8 713 | -10 075 | | FINANCIAL ASSETS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid assets at the beginning of the | 2 321 | 12 396 | 12 396 | | financial period | | | | -------------------------------------------------------------------------------- | Liquid assets at the end of the | 3 857 | 3 683 | 2 321 | | financial period | | | | -------------------------------------------------------------------------------- GROUP KEY FIGURES -------------------------------------------------------------------------------- | | 6/2009 | 6/2008 | 12/2008 | -------------------------------------------------------------------------------- | Earnings/share (EUR) | 0.41 | 0.74 | 0.92 | -------------------------------------------------------------------------------- | Shareholders' equity/share (EUR) | 1.63 | 3.38 | 1.57 | -------------------------------------------------------------------------------- | Average number of personnel | 370 | 387 | 393 | -------------------------------------------------------------------------------- | Investments (EUR 1,000) *) | 564 | 55 476 | 56 348 | -------------------------------------------------------------------------------- | Interest-bearing debt (EUR | 40 022 | 46 000 | 43 607 | | 1,000) | | | | -------------------------------------------------------------------------------- | Equity ratio, % | 33.5 | 47.5 | 30.9 | -------------------------------------------------------------------------------- *) Investment in tangible and intangible assets and available-for-sale assets (shares). Taxes included in the income statement are taxes corresponding to the result for the period under review. STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY (EUR 1,000) -------------------------------------------------------------------------------- | Change in | Share | Fair | Other | Retained | Total | | shareholders' | capital | value | reserves | earnings | | | equity 1-6/2008 | | reserve | | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | 3 666 | 8 179 | 12 862 | 39 199 | 63 907 | | EQUITY 1.1. | | | | | | -------------------------------------------------------------------------------- | Comprehensive | | -10 498 | | 10 858 | 360 | | income for the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | -14 666 | -14 666 | | distribution | | | | | | -------------------------------------------------------------------------------- | TOTAL | 3 666 | -2 319 | 12 862 | 35 392 | 49 601 | | SHAREHOLDERS' | | | | | | | EQUITY 6/2008 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in | Share | Fair | Other | Retained | Total | | shareholders' | capital | value | reserves | earnings | | | equity 1-6/2009 | | reserve | | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | 3 666 | -31 509 | 12 862 | 38 064 | 23 083 | | EQUITY 1.1. | | | | | | -------------------------------------------------------------------------------- | Comprehensive | | -695 | | 5 946 | 5 251 | | income for the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | -4 400 | -4 400 | | distribution | | | | | | -------------------------------------------------------------------------------- | TOTAL | 3 666 | -32 204 | 12 862 | 39 610 | 23 934 | | SHAREHOLDERS' | | | | | | | EQUITY 6/2009 | | | | | | -------------------------------------------------------------------------------- GROUP CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | (EUR 1,000) | 6/2009 | 6/2008 | 12/2008 | -------------------------------------------------------------------------------- | Collateral pledged for own | | | | | commitments | | | | -------------------------------------------------------------------------------- | Mortgages on company assets | 1 245 | 1 245 | 1 245 | -------------------------------------------------------------------------------- | Mortgages on real estate | 8 801 | 7 201 | 8 801 | -------------------------------------------------------------------------------- | Pledged shares | 25 540 | 45 300 | 26 013 | -------------------------------------------------------------------------------- SEGMENT INFORMATION The Group has changed its segment reporting as of 1 January 2009. Again, the Group's operating segments continue to be Publishing and Printing. From 1 January 2009, the allocation of assets to segments and associated income was changed to correspond with the internal reporting, per IFRS 8. Following the change, certain properties will no longer be allocated to specific operating segments. They shall instead be associated with the non-allocated group. The 2008 reference data for segment information have been corrected in accordance with the new accounting principles. NET SALES BY SEGMENT -------------------------------------------------------------------------------- | (EUR 1,000) | 4-6/ | 4-6/ | Chang | 1-6/ | 1-6/ | Chang | 1-12/ | | | 2009 | 2008 | e | 2009 | 2008 | e | 2008 | -------------------------------------------------------------------------------- | Publishing | | | | | | | | -------------------------------------------------------------------------------- | External | 10 201 | 11 318 | -10 % | 19 838 | 22 301 | -11 % | 44 493 | -------------------------------------------------------------------------------- | Inter-segments | 46 | 43 | 7 % | 72 | 80 | -11 % | 155 | -------------------------------------------------------------------------------- | Publishing | 10 247 | 11 361 | -10 % | 19 909 | 22 381 | -11 % | 44 648 | | total | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Printing | | | | | | | | -------------------------------------------------------------------------------- | External | 2 414 | 2 889 | -16 % | 4 782 | 5 330 | -10 % | 10 887 | -------------------------------------------------------------------------------- | Inter-segments | 2 256 | 2 354 | -4 % | 4 409 | 4 610 | -4 % | 9 294 | -------------------------------------------------------------------------------- | Printing total | 4 670 | 5 243 | -11 % | 9 191 | 9 940 | -8 % | 20 181 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-allocated | | | | | | | | -------------------------------------------------------------------------------- | External | 1 | 1 | -9 % | 1 | 1 | -6 % | 3 | -------------------------------------------------------------------------------- | Inter-segments | 754 | 689 | 9 % | 1 509 | 1 377 | 10 % | 2 770 | -------------------------------------------------------------------------------- | Non-allocated | 755 | 690 | 9 % | 1 510 | 1 378 | 10 % | 2 774 | | total | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Elimination | -3 057 | -3 086 | -1 % | -5 989 | -6 067 | -1 % | -12 219 | -------------------------------------------------------------------------------- | Group net | 12 616 | 14 209 | -11 % | 24 621 | 27 632 | -11 % | 55 384 | | sales total | | | | | | | | -------------------------------------------------------------------------------- OPERATING PROFIT BY SEGMENT -------------------------------------------------------------------------------- | (EUR 1,000) | 4-6/ | 4-6/ | Chang | 1-6/ | 1-6/ | Chang | 1-12/ | | | 2009 | 2008 | e | 2009 | 2008 | e | 2008 | -------------------------------------------------------------------------------- | Publishing | 1 625 | 2 358 | -31 % | 2 961 | 4 621 | -36 % | 8 976 | -------------------------------------------------------------------------------- | Printing | 954 | 772 | 24 % | 1 446 | 1 375 | 5 % | 2 580 | -------------------------------------------------------------------------------- | Non-allocated | -207 | -514 | 60 % | -239 | -621 | 62 % | -827 | -------------------------------------------------------------------------------- | Group | 2 371 | 2 616 | -9 % | 4 168 | 5 375 | -22 % | 10 728 | | operating | | | | | | | | | profit total | | | | | | | | -------------------------------------------------------------------------------- ASSETS BY SEGMENT -------------------------------------------------------------------------------- | (EUR 1,000) | 6/2009 | 6/2008 | Change | 12/2008 | -------------------------------------------------------------------------------- | Publishing | 13 983 | 16 276 | -14 % | 9 148 | -------------------------------------------------------------------------------- | Printing | 16 497 | 19 660 | -16 % | 19 320 | -------------------------------------------------------------------------------- | Non-allocated | 45 758 | 73 444 | -38 % | 47 861 | -------------------------------------------------------------------------------- | Group assets total | 76 238 | 109 381 | -30 % | 76 328 | -------------------------------------------------------------------------------- CHANGES IN PROPERTY, PLANT AND EQUIPMENT -------------------------------------------------------------------------------- | (EUR 1,000) | 1-6/ | 1-6/ | Change | 1-12/ | | | 2009 | 2008 | | 2008 | -------------------------------------------------------------------------------- | Carrying amount at the | 19 805 | 19 537 | 1 % | 19 537 | | beginning of the financial | | | | | | period | | | | | -------------------------------------------------------------------------------- | Increase | 179 | 2 213 | -92 % | 2 974 | -------------------------------------------------------------------------------- | Decrease | -1 | -71 | -99 % | -91 | -------------------------------------------------------------------------------- | Depreciation for the | -1 438 | -1 278 | 13 % | -2 659 | | financial period | | | | | -------------------------------------------------------------------------------- | Transfers between items | | -6 | | 44 | -------------------------------------------------------------------------------- | Carrying amount at the end | 18 546 | 20 395 | -9 % | 19 805 | | of the financial period | | | | | -------------------------------------------------------------------------------- RELATED PARTY TRANSACTIONS The following related party transactions were carried out: -------------------------------------------------------------------------------- | (EUR 1,000) | 6/2009 | 6/2008 | 12/2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales of goods and services | | | | -------------------------------------------------------------------------------- | To associated companies | 115 | 108 | 203 | -------------------------------------------------------------------------------- | To other related parties | 322 | 433 | 796 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Purchases of goods and services | | | | -------------------------------------------------------------------------------- | From associated companies | 292 | 246 | 454 | -------------------------------------------------------------------------------- | From other related parties | | | 1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current trade and other | | | | | receivables | | | | -------------------------------------------------------------------------------- | Loan receivables from associated | 28 | 39 | 39 | | companies | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Trade receivables | | | | -------------------------------------------------------------------------------- | From associated companies | 16 | 14 | 9 | -------------------------------------------------------------------------------- | From other related parties | 62 | 62 | 43 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Accounts payable | | | | -------------------------------------------------------------------------------- | To associated companies | | 2 | 12 | -------------------------------------------------------------------------------- Transactions with related parties are conducted at fair market prices. Employee benefits to management -------------------------------------------------------------------------------- | (EUR 1,000) | 6/2009 | 6/2008 | 12/2008 | -------------------------------------------------------------------------------- | Salaries and other short-term | 418 | 449 | 827 | | employee benefits | | | | -------------------------------------------------------------------------------- The management comprises the Board of Directors, Supervisory Board, managing director, and Group Executive Team. The figures stated on the basis of the cash method do not differ significantly from those based on the accrual method. General statement This report contains certain statements that are estimates based on the management's best knowledge at the time they were made. For this reason, they involve a certain amount of inherent risk and uncertainty. The estimates may change in the event of significant changes in general economic and business conditions. Seinäjoki, 3 August 2009 ILKKA-YHTYMÄ OYJ Board of Directors Matti Korkiatupa Managing Director For more information: Matti Korkiatupa, Managing Director, Ilkka-Yhtymä Oyj Tel. +358 (0)500-162 015 DISTRIBUTION NASDAQ OMX Helsinki The main media www.ilkka-yhtyma.fi This stock exchange release is not an offer of securities for sale in the United States or in any EEA Member State. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Ilkka-Yhtymä Oyj has not registered, and does not intend to register, any portion of the offering in the United States and does not intend to conduct a public offering of shares in the United States. Any offer of securities to the public that may be deemed to be made pursuant to this stock exchange release in any EEA member state that has implemented the Prospectus Directive is only addressed to qualified investors in that member state within the meaning of the Prospectus Directive or otherwise on the basis of the exemptions pursuant to the Directive 2003/1/EC concerning the obligation to publish a prospectus.
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