2007-02-19 11:02:20 CET
2007-02-19 11:02:20 CET
REGULATED INFORMATION
Ilkka-Yhtymä Oyj - Financial Statement Release
THE ILKKA-YHTYMÄ GROUP'S FINANCIAL STATEMENTS FOR 2006
THE ILKKA-YHTYMÄ GROUP'S FINANCIAL STATEMENTS FOR 2006
Ilkka Yhtymä Group's consolidated net sales amounted to EUR 52,670 thousand (EUR
53,932 thousand in 2005), while operating profit increased to EUR 9,703 thousand
(EUR 9,521 thousand) and the operating margin was 18.4 per cent (17.7 per cent).
Profit before taxes came to EUR 19,535 thousand (EUR 12,477 thousand). Return on
investment (ROI) was 36.0% (28.9%) and Return on equity (ROE) 31.7% (21.3%).
Earnings per share were EUR 1.17 and equity per share amounted to EUR 4.14. The
Board of Directors proposes a per share dividend of EUR 0.60, together with an
additional payment of EUR 0.30 per share due to capital gains from the sale of
Savon Mediat Oy's shares, making dividend payments account for 77.2 per cent of
the Group's profit.
MATTI KORKIATUPA, CEO:
“We are very satisfied with our achievements during this busy, centenary year,
when the Group and its newspapers gained significant amounts of positive
exposure and we achieved a record profit.
Dozens of the centenary events organised for our customers, including the
premiere of the folk opera, ‘Lakeuksien Lukko', based on the novel by Ilkka's
former Chief Editor Artturi Leinonen, proved to be successful.
We targeted our product development investments at the reinforcement of our
papers' multi-channel products and services. We reformed the online and mobile
services of our provincial, town and local papers as well as the visual identity
of local and town papers. As of the beginning of 2007, we introduced the paper,
‘Periskooppi', distributed between town papers to over 94,000 households. We
made an agreement on the earlier distribution of our provincial papers in rural
areas, which will be gradually realised during 2007.
The Group's net sales decreased by 2 per cent due to the divestment of
unprofitable export of printed material. However, the profitability of our
printing operations remained healthy, owing to the measures taken to enhance
production efficiency. Net sales from publishing increased by 2 per cent, media
sales rising by 2.3 per cent and circulation sales by 1.3 per cent.
Profitability saw a favourable development in the last quarter as media sales
improved by 4 per cent and non-recurring centenary expenses diminished. During
the entire financial year, the profitability of core operations improved and our
operating margin edged up to 18.4 per cent.
In terms of investment levels, the financial year was favourable. Despite the
growth in interest rates, share prices saw a positive development. We increased
our holding in Alma Media Oyj and, at the turn of the year, divested our holding
in Savon Mediat Oy.
Prospects for the beginning of the year are positive; consumer purchasing power
will grow and growth in expenses will remain moderate. The re-establishment of
commerce and services in our region will also reinforce our media sales
opportunities. Our relationships with printing customers are based on annual
agreements and, according to these, no significant changes in volumes are in
prospect. At the beginning of the year, our financial income will enjoy a rise
due to the increase in dividend income.”
OPERATING ENVIRONMENT
Finland's GDP is estimated to have grown slightly over five per cent in 2006,
much more rapid growth than the eurozone average. This rise in GDP was in part
due to the previous year's low level, which was largely influenced by production
downtime in the forest industry. Chiefly, this growth was induced by export and
domestic demand. Export grew by slightly over ten per cent and private
consumption by four per cent. The economy and employment in the provinces of
Southern Ostrobothnia and Ostrobothnia developed favourably, which was reflected
in Ilkka Yhtymä's business.
According to TNS Gallup Adex, media advertising increased by 3 per cent in 2006,
with newspaper advertising up by 2.5 and town paper advertising up by 2 per
cent. Job advertising increased by 18 per cent. Newspapers accounted for 47.8
and town papers for 5.6 per cent of total media advertising.
GROUP STRUCTURE
The Ilkka-Yhtymä Group comprises the parent company Ilkka-Yhtymä Oyj, and the
publishing companies Sanomalehti Ilkka Oy, Vaasa Oy and Pohjanmaan Lähisanomat
Oy. The Group also includes the sheet and newspaper printing company I-print Oy,
the real estate companies Kiinteistö Oy Seinäjoen Koulukatu 10 and Seinäjoen
Kassatalo Osakeyhtiö, and I-Mediat Oy. The main products of the Group's
companies involved in the publishing business are the newspapers Ilkka and
Pohjalainen. Other publications include the local newspapers Härmät, Jurvan
Sanomat, Järviseutu, Suupohjan Sanomat, Viiskunta and the town papers
Etelä-Pohjanmaa and Vaasan Ikkuna.
The consolidated financial statements include the results of the associated
companies Savon Mediat Oy, Arena Partners Oy, Väli-Suomen Media Oy and Yrittävä
Suupohja Oy. Ilkka-Yhtymä Oyj sold its 25.6 per cent holding in Savon Mediat Oy
to Keskisuomalainen Oyj on 29 December 2006.
GROUP FINANCIAL PERFORMANCE
Consolidated net sales amounted to EUR 52,670 thousand (EUR 53,932 thousand in
2005). External net sales from publishing operations increased by EUR 971
thousand (2.3 per cent), but external net sales from the printing business
declined by EUR 2,228 thousand (18.0 per cent) due to fiercer competition in
export markets. Other operating income totalled EUR 488 thousand (EUR 377
thousand), including approximately EUR 60 thousand in capital gains from the
sale of fixed-assets.
The Group's operating expenses for the period totalled EUR 43,415 thousand (EUR
44,788 thousand), a decrease of 3.1 per cent. The operating expenses of the
printing business declined due to diminishing volumes. Operating expenses of the
publishing business were up due to slight growth in net sales, non-recurring
centenary expenses and higher cost levels. Personnel costs decreased by 0.4 per
cent. Personnel expenses include staff profit-sharing remuneration. Other
operating expenses increased by 4.9 per cent year on year chiefly due to the
above-mentioned centenary expenses. Depreciation, included in operating
expenses, amounted to EUR 3,265 thousand (EUR 3,361 thousand in 2005).
Consolidated operating profit totalled EUR 9,703 thousand (EUR 9,521 thousand),
up by 1.9 per cent year-on-year. The operating margin was 18.4 per cent (17.7).
Net financial income came to EUR 8,002 thousand (EUR 1,909 thousand), including
the Group's capital gains (EUR 7,412 thousand) from the sale of a holding in an
associated company. The share of the associated companies' result was
EUR 1,831 thousand (EUR 1,047 thousand). Pre-tax profit totalled EUR 19,535
thousand (EUR 12,477 thousand). Direct taxes amounted to EUR 2,431 thousand (EUR
2,738 thousand). The Group's net profit for the period totalled EUR 17,104
thousand, showing growth of 75.6 per cent from the previous year.
The consolidated balance sheet total increased to EUR 78,463 thousand (EUR
58,438 thousand) while shareholders' equity was EUR 60,768 thousand (EUR 47,003
thousand). The fair value reserve grew by EUR 4,483 thousand over the year.
Interest-bearing liabilities totalled EUR 6,063 thousand (EUR 189 thousand).
Earnings per share amounted to EUR 1.17 (EUR 0.66) and equity per share was EUR
4.14 (EUR 3.20).
PUBLISHING
The Group's publishing operations segment comprises the publishing companies
Sanomalehti Ilkka Oy, Vaasa Oy, and Pohjanmaan Lähisanomat Oy. The segment's net
sales for the financial year totalled EUR 42,614 thousand (EUR 41,664 thousand),
boosted by growth in both subscriptions and advertising net sales. Net sales of
the provincial newspaper companies Sanomalehti Ilkka Oy and Vaasa Oy showed an
increase, while those of Pohjanmaan Lähisanomat Oy, a local newspaper company,
decreased slightly.
Operating profit from publishing operations remained at the previous year's high
level, totalling EUR 8,100 thousand (EUR 8,089 thousand).
PRINTING
The printing segment comprises the printing house I-print Oy. The segment's net
sales fell to EUR 20,569 thousand (EUR 22,725 thousand), due to fiercer
competition in export sales.
Operating profit from printing increased by 13.1 per cent year-on-year,
totalling EUR 2,819 thousand (EUR 2,492 thousand).
Q4/2006 NET SALES AND OPERATING RESULTS
Net sales for October to December 2006 came to EUR 13,933 thousand (EUR 13,733
thousand). Growth occurred mainly in net sales based on publishing.
Q4 expenses totalled EUR 11,522 thousand (EUR 11,602 thousand). Operating profit
totalled EUR 2,586 thousand (EUR 2,238 thousand).
Net financial income was EUR 7,531 thousand (EUR 90 thousand), including the
Group's capital gains (EUR 7,412 thousand) from the sale of a holding in an
associated company. The share of profit generated by the associated companies
was EUR 384 thousand.
Q4 pre-tax profit totalled EUR 10,501 thousand (EUR 2,639 thousand).
FINANCIAL POSITION AND CAPITAL EXPENDITURE
Reported capital expenditure totalled EUR 22,529 thousand, with printing
accounting for EUR 1,601 thousand, and publishing for EUR 333 thousand. In 2006,
EUR 20,409 thousand was spent on available-for-sale assets.
The Group's liquidity remained solid throughout the year. The current ratio was
2.80 (1.81) at the end of the financial period. Based on the consolidated
balance sheet, equity ratio was 79.0 (82.6) per cent. Liquid assets were EUR
14,626 thousand (EUR 7,331 thousand). Reported cash flow from business
operations totalled EUR 10,797 thousand (EUR 15,529 thousand). Cash flow from
investments was EUR -1,612 thousand (EUR -2,246 thousand), mainly comprising an
investment in Alma Media shares and the sale of a holding in an associated
company.
ANNUAL GENERAL MEETING, SUPERVISORY BOARD AND BOARD OF DIRECTORS
The Annual General Meeting (AGM) of 20 April 2006 approved the financial
statements, discharged the members of the Supervisory Board and the Board of
Directors as well as the CEO of any liability, and decided to distribute a
dividend of EUR 0.53 per share (adjusted for the bonus issue).
The AGM authorised the Board of Directors to decide, within twelve months from
the date of the meeting, on increasing share capital as opposed to the
shareholders' subscription privileges, if required, by a maximum of EUR 651,793
and/or issuing convertible bonds and/or stock options.
The AGM decided to increase the company's share capital by means of a bonus
issue of shares from EUR 3,259,074 to EUR 3,666,458.25 by transferring the sum
of EUR 165,583.05 from the share premium fund and EUR 241,801.20 from the
reserve fund to the share capital.
Under the bonus issue, one (1) new Series I share was issued for eight (8)
existing Series I shares and one (1) new Series II share for eight (8) existing
Series II shares, i.e. a total of 478,229 new Series I shares at a nominal value
of 0.25 euros per share and 1,151,308 new Series II shares at a nominal value of
0.25 euros per share. After the bonus issue, the new share total is 14,665,833
(4,304,061 Series I shares and 10,361,772 Series II shares).
The share capital increase was entered in the Trade Register on 25 April 2006.
The new shares have been traded in the Helsinki Stock Exchange together with the
old shares since 26 April 2006.
Of the members of the Supervisory Board whose term of service had come to an
end, the AGM re-elected the following: Jari Eklund Helsinki, Ossi Jäkärä Vaasa,
Yrjö Kopra Helsinki, Juha Mikkilä Kurikka and Sari Mutka Helsinki. Kari Aukia
Vaasa, Mari Kiviniemi Helsinki and Sakari Kivisaari Helsinki were elected as new
members of the Supervisory Board.
Ernst & Young Oy, Authorised Public Accountants, with Tomi Englund, Authorised
Public Accountant and Pekka Kiljunen, Authorised Public Accountant, were elected
as principal auditors. Päivi Virtanen, Authorised Public Accountant, and Johanna
Winqvist-Ilkka, Authorised Public Accountant, were elected as deputy auditors.
At its meeting on 20 May 2006, the Supervisory Board of Ilkka-Yhtymä Oyj
re-elected Lasse Hautala to the Board of Directors of Ilkka-Yhtymä Oyj. At its
membership meeting, the Board of Directors re-elected Veikko Heikkilä as its
Chairman. Other members of the Board in 2006 were Jaakko Aukia (Vice Chairman),
Seppo Paatelainen and Tapio Savola. Jaakko Rintala will continue as the Chairman
of the Supervisory Board.
SHARE PERFORMANCE
At the end of 2006, the company's share capital totalled EUR 3,666,458. The
number of shares was 14,665,833, of which 4,304,061 were Series I shares
(20 votes per share) and 10,361,772 were Series II shares (1 vote per share).
Shares of both series entitle the holders to the same dividend. The nominal
value of the company share is EUR 0.25.
According to the Articles of Association, no-one at a General Meeting may use,
on behalf of him/herself or by proxy, a total number of votes exceeding
one-twentieth (1/20) of the number of votes presented at the meeting.
The transfer of Series I shares is restricted by an approval clause. According
to this clause, Series I shares cannot be transferred to another holder without
the approval of the Board of Directors.
The Series I shares of Ilkka-Yhtymä Oyj have been listed on the Helsinki Stock
Exchange since 1981. 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. On 2 October 2006, the quotation of Series II shares was
transferred to the OMX Nordic List, to the Nordic Mid Cap group and Consumer
Discretionary sector, and that of Series I shares was moved to the Pre List.
The number of Series I shares of Ilkka-Yhtymä Oyj traded in 2006 was 68,841 (not
adjusted for the bonus issue: 66,205), which is 2 per cent of series share
stock. The trading value of shares was EUR 0.8 million. The number of Series II
shares traded totalled 3,037,245 (not adjusted for the bonus issue: 2,848,292),
which equals 29 per cent of the series share stock. Their trading value was EUR
32.0 million. During the report period, the lowest quotation for Ilkka-Yhtymä
Oyj's Series I share was EUR 9.78 and the highest EUR 14.13, while the lowest
quotation for a Series II share was EUR 8.70 and the highest EUR 12.17. At the
period-end closing price, the share capital market value was EUR 168.3 million.
The company did not issue stock options or convertible bonds. The Board of
Directors has an effective authorisation to increase share capital by a maximum
of EUR 651,793 and/or to issue convertible bonds/stock options. The company is
not authorised to buy back or transfer its own shares.
DIVIDEND
Based on a decision by the AGM, Ilkka-Yhtymä Oyj distributed a per-share
dividend of EUR 0.53 for the year 2005 (adjusted for the bonus issue). In
addition, the AGM decided to increase the company's share capital based on the
bonus issue, executed by issuing one bonus share for each eight existing shares.
The Board of Directors proposes to the AGM of 16 April 2007 that a per share
dividend of EUR 0.60 be distributed for 2006, together with an additional
payment of EUR 0.30 per share due to capital gains from the sale of Savon Mediat
Oy's shares, i.e. a dividend payment of EUR 13,199,249.70. The Group distributes
77.2 per cent of its profit in dividends.
Ilkka-Yhtymä Oyj practices an active dividend policy and aims to distribute at
least half of its consolidated annual income as dividend payments, taking into
consideration the financing required for profitable growth and the company's
future outlook.
EVENTS AFTER THE FINANCIAL YEAR
Väli-Suomen Media and TS-Yhtymä will launch a shared news and financial news
department in Helsinki on 1 April 2007.
PROSPECTS FOR 2007
Media advertising is expected to show moderate growth in Finland due to
increasing consumer spending, while printing volumes are likely to remain almost
unchanged and competition will remain tough.
Ilkka-Yhtymä Group expects slight growth in its consolidated net sales as net
sales of publishing improve.
Operating profit and operating profit as a percentage of net sales are expected
to remain at the healthy levels of 2006. The profit for the entire financial
year will presumably fall, since the financial income of the comparison year
2006 includes significant non-recurring capital gains from the sale of an
associated company and the proportion of the sold associated company's result
entered in the books for that year. Profit is affected by securities trading
volumes and the price performance of securities investments as well as dividends
from available-for-sale assets and potential sales gains or losses on
available-for-sale assets.
SEGMENT INFORMATION
--------------------------------------------------------------------------------
| Group net sales | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change |
| (EUR 1,000) | 2006 | 2005 | | 2006 | 2005 | |
--------------------------------------------------------------------------------
| Publishing | 11 264 | 10 942 | 3 % | 42 614 | 41 664 | 2 % |
--------------------------------------------------------------------------------
| Printing | 5 311 | 5 514 | -4 % | 20 569 | 22 725 | -9 % |
--------------------------------------------------------------------------------
| Non-allocated | 516 | 508 | 2 % | 2 072 | 2 002 | 3 % |
--------------------------------------------------------------------------------
| Net sales | -3 157 | -3 231 | -2 % | -12 586 | -12 459 | 1 % |
| between segments | | | | | | |
--------------------------------------------------------------------------------
| Total | 13 933 | 13 733 | 1 % | 52 670 | 53 932 | -2 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group operating | 10-12/ | 10-12/ | Chang | 1-12/ | 1-12/ | Change |
| profit (EUR | 2006 | 2005 | e | 2006 | 2005 | |
| 1,000) | | | | | | |
--------------------------------------------------------------------------------
| Publishing | 2 359 | 1 990 | 19 % | 8 100 | 8 089 | 0 % |
--------------------------------------------------------------------------------
| Printing | 547 | 576 | -5 % | 2 819 | 2 492 | 13 % |
--------------------------------------------------------------------------------
| Non-allocated | -320 | -327 | -2 % | -1 215 | -1 058 | 15 % |
--------------------------------------------------------------------------------
| Operating profit between | | | -1 | -1 | |
| segments | | | | | |
--------------------------------------------------------------------------------
| Total | 2 586 | 2 238 | 16 % | 9 703 | 9 521 | 2 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP NET SALES BY MARKET AREA (EUR 1,000) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-12/2006 | 1-12/2005 | Change | |
--------------------------------------------------------------------------------
| Finland | 52 449 | 50 222 | 4.4 % | |
--------------------------------------------------------------------------------
| Other Nordic countries | 220 | 3 711 | -94.1 % | |
--------------------------------------------------------------------------------
| Total | 52 670 | 53 932 | -2.3 % | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP INCOME STATEMENT (EUR 1,000) | 1-12/2006 | 1-12/2005 | Change |
--------------------------------------------------------------------------------
| NET SALES | 52 670 | 53 932 | -2.3 % |
--------------------------------------------------------------------------------
| Increase (+) or decrease (-) in stocks | 2 | -43 | -104.0 % |
| of finished products | | | |
--------------------------------------------------------------------------------
| Other operating income | 448 | 377 | 18.9 % |
--------------------------------------------------------------------------------
| Materials and services | -15 834 | -17 317 | -8.6 % |
--------------------------------------------------------------------------------
| Employee benefits | -17 494 | -17 558 | -0.4 % |
--------------------------------------------------------------------------------
| Depreciation | -3 265 | -3 361 | -2.9 % |
--------------------------------------------------------------------------------
| Other operating costs | -6 825 | -6 509 | 4.9 % |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 9 703 | 9 521 | 1.9 % |
--------------------------------------------------------------------------------
| Financial income and expenses | 8 002 | 1 909 | 319.2 % |
--------------------------------------------------------------------------------
| Share of associated companies' profit | 1 831 | 1 047 | 74.9 % |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 19 535 | 12 477 | 56.6 % |
--------------------------------------------------------------------------------
| Taxes | -2 431 | -2 738 | -11.2 % |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD UNDER REVIEW | 17 104 | 9 739 | 75.6 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP BALANCE SHEET (EUR 1,000) | | | |
--------------------------------------------------------------------------------
| Assets | 12/2006 | 12/2005 | Change |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible assets | 500 | 346 | 44.5 % |
--------------------------------------------------------------------------------
| Investment property | 749 | 852 | -12.0 % |
--------------------------------------------------------------------------------
| Tangible assets | 19 706 | 21 171 | -6.9 % |
--------------------------------------------------------------------------------
| Shares in associated companies | 458 | 10 046 | -95.4 % |
--------------------------------------------------------------------------------
| Available-for-sale assets | 35 558 | 10 521 | 238.0 % |
--------------------------------------------------------------------------------
| Long-term trade receivables and other | 39 | 39 | 0.0 % |
| receivables | | | |
--------------------------------------------------------------------------------
| Other tangible assets | 214 | 227 | -5.9 % |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 57 224 | 43 202 | 32.5 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 890 | 827 | 7.6 % |
--------------------------------------------------------------------------------
| Trade and other receivables | 3 602 | 3 856 | -6.6 % |
--------------------------------------------------------------------------------
| Income tax assets | 435 | 571 | -23.9 % |
--------------------------------------------------------------------------------
| Other financial assets at fair value | 1 687 | 2 650 | -36.4 % |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Cash and bank deposits | 14 626 | 7 331 | 99.5 % |
--------------------------------------------------------------------------------
| TOTAL Current assets | 21 240 | 15 236 | 39.4 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 78 463 | 58 438 | 34.3 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES | 12/2006 | 12/2005 | Change |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDER'S EQUITY | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | 3 666 | 3 259 | 12.5 % |
--------------------------------------------------------------------------------
| Issue premium fund | | 166 | -100.0 % |
--------------------------------------------------------------------------------
| Fair value reserve and other reserves | 18 402 | 14 161 | 30.0 % |
--------------------------------------------------------------------------------
| Retained earnings | 38 700 | 29 418 | 31.6 % |
--------------------------------------------------------------------------------
| SHAREHOLDER'S EQUITY | 60 768 | 47 003 | 29.3 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 4 101 | 2 971 | 38.0 % |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 6 000 | 63 | 9413.2 % |
| liabilities | | | |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | 10 101 | 3 034 | 232.9 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | 63 | 126 | -50.0 % |
--------------------------------------------------------------------------------
| Accounts payable and other payables | 7 528 | 7 484 | 0.6 % |
--------------------------------------------------------------------------------
| Income tax liabilities | 2 | 791 | -99.7 % |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | 7 594 | 8 401 | -9.6 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES | 78 463 | 58 438 | 34.3 % |
| TOTAL | | | |
--------------------------------------------------------------------------------
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| GROUP CASH FLOW STATEMENT (EUR 1,000) | | |
--------------------------------------------------------------------------------
| | 2006 | 2005 |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATIONS | | |
--------------------------------------------------------------------------------
| Profit for the period under review | 17 104 | 9 739 |
--------------------------------------------------------------------------------
| Adjustments | -4 174 | 3 104 |
--------------------------------------------------------------------------------
| Change in working capital | 132 | 770 |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATIONS | | |
--------------------------------------------------------------------------------
| BEFORE FINANCE AND TAXES | 13 062 | 13 613 |
--------------------------------------------------------------------------------
| Financial income and expenses | 1 263 | 3 980 |
--------------------------------------------------------------------------------
| Direct taxes paid | -3 528 | -2 064 |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATIONS | 10 797 | 15 529 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTMENTS | | |
--------------------------------------------------------------------------------
| Investments in tangible and | | |
--------------------------------------------------------------------------------
| intangible assets, net | -1 795 | -1 144 |
--------------------------------------------------------------------------------
| Sold and acquired associated companies | 18 198 | |
--------------------------------------------------------------------------------
| Other investments, net | -18 983 | -3 136 |
--------------------------------------------------------------------------------
| Repayment of loan receivables (+) | | 1 277 |
--------------------------------------------------------------------------------
| Dividends received from investments | 968 | 757 |
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTMENTS | -1 612 | -2 246 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW BEFORE FINANCING ITEMS | 9 185 | 13 283 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | | |
--------------------------------------------------------------------------------
| Change in current loans | | -2 000 |
--------------------------------------------------------------------------------
| Change in non-current loans | 5 874 | -126 |
--------------------------------------------------------------------------------
| Dividends paid and other profit | -7 764 | -7 734 |
| distribution | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | -1 890 | -9 860 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCREASE (+) OR DECREASE (-) | | |
--------------------------------------------------------------------------------
| IN FINANCIAL ASSETS | 7 295 | 3 423 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets at the beginning of the | | |
--------------------------------------------------------------------------------
| financial period | 7 331 | 3 908 |
--------------------------------------------------------------------------------
| Liquid assets at the end of the | | |
--------------------------------------------------------------------------------
| financial period | 14 626 | 7 331 |
--------------------------------------------------------------------------------
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| GROUP KEY FIGURES 2005-2006 | |
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| Key figures indicating financial development | |
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| | 2006 | 2005 |
--------------------------------------------------------------------------------
| Net sales, Meur | 52.7 | 53.9 |
--------------------------------------------------------------------------------
| - change % | -2.3 | 0.1 |
--------------------------------------------------------------------------------
| Operating profit, Meur | 9.7 | 9.5 |
--------------------------------------------------------------------------------
| - % of net sales | 18.4 | 17.7 |
--------------------------------------------------------------------------------
| Profit before taxes, Meur | 19.5 | 12.5 |
--------------------------------------------------------------------------------
| - % of net sales | 37.1 | 23.1 |
--------------------------------------------------------------------------------
| Result for the financial period, Meur | 17.1 | 9.7 |
--------------------------------------------------------------------------------
| - % of net sales | 32.5 | 18.1 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | 31.7 | 21.3 |
--------------------------------------------------------------------------------
| Return on investment (ROI), % | 36.0 | 28.9 |
--------------------------------------------------------------------------------
| Equity ratio, % | 79.0 | 82.6 |
--------------------------------------------------------------------------------
| Gearing, % | -16.9 | -20.8 |
--------------------------------------------------------------------------------
| Gross capital expenditure, Meur *) | 22.5 | 6.8 |
--------------------------------------------------------------------------------
| - % of net sales | 42.8 | 12.6 |
--------------------------------------------------------------------------------
| Balance sheet total, Meur | 78.5 | 58.4 |
--------------------------------------------------------------------------------
| Current ratio | 2.80 | 1.81 |
--------------------------------------------------------------------------------
| Average no. of employees | 399 | 410 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Investment in tangible and intangible assets and available-for-sale | |
| assets (shares) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Per-share ratios | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2006 | 2005 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), eur | 1.17 | 0.66 |
--------------------------------------------------------------------------------
| Shareholders' equity per share, eur | 4.14 | 3.20 |
--------------------------------------------------------------------------------
| Dividend per share (Series I), eur | 0.90 | 0.53 |
--------------------------------------------------------------------------------
| Dividend per share (Series II), eur | 0.90 | 0.53 |
--------------------------------------------------------------------------------
| Nominal dividend EUR/share (Series I and | 0.90 *) | 0.53 |
| Series II) | | |
--------------------------------------------------------------------------------
| Dividend per earnings (Series I), % | 77.2 | 80.3 |
--------------------------------------------------------------------------------
| Dividend per earnings (Series II), % | 77.2 | 80.3 |
--------------------------------------------------------------------------------
| Effective dividend yield (Series I), % | 7.5 | 4.8 |
--------------------------------------------------------------------------------
| Effective dividend yield (Series II), % | 8.0 | 5.5 |
--------------------------------------------------------------------------------
| Price per earnings (P/E) (Series I) | 10.3 | 16.8 |
--------------------------------------------------------------------------------
| Price per earnings (P/E) (Series II) | 9.7 | 14.7 |
--------------------------------------------------------------------------------
| Adjusted price development of shares | | |
--------------------------------------------------------------------------------
| average price (Series I), eur | 11.83 | 9.55 |
--------------------------------------------------------------------------------
| average price (Series II), eur | 10.54 | 8.48 |
--------------------------------------------------------------------------------
| lowest price (Series I), eur | 9.78 | 7.24 |
--------------------------------------------------------------------------------
| lowest price (Series II), eur | 8.70 | 6.67 |
--------------------------------------------------------------------------------
| highest price (Series I), eur | 14.13 | 12.18 |
--------------------------------------------------------------------------------
| highest price (Series II), eur | 12.17 | 10.04 |
--------------------------------------------------------------------------------
| price at end of period (Series I), eur | 12.00 | 11.18 |
--------------------------------------------------------------------------------
| price at end of period (Series II), eur | 11.26 | 9.73 |
--------------------------------------------------------------------------------
| Market capitalisation, Meur | 168.3 | 148.4 |
--------------------------------------------------------------------------------
| Shares traded (Series I), number of shares | 68 841 | 84 797 |
--------------------------------------------------------------------------------
| - % of total number of shares | 1.6 | 2.0 |
--------------------------------------------------------------------------------
| Shares traded (Series II), number of shares | 3 037 245 | 1 999 686 |
--------------------------------------------------------------------------------
| - % of total number of shares | 29.3 | 19.3 |
--------------------------------------------------------------------------------
| Weighted average of adjusted numbers of | | |
--------------------------------------------------------------------------------
| shares during the financial period | 14 665 833 | 14 665 833 |
--------------------------------------------------------------------------------
| Adjusted number of shares at the end of | | |
--------------------------------------------------------------------------------
| the financial period | 14 665 833 | 14 665 833 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Proposal of the Board of Directors | | |
--------------------------------------------------------------------------------
| The figures have been adjusted to take | | |
| account of the bonus issue. | | |
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CONSOLIDATED NET SALES AND PROFIT BY QUARTER (EUR 1,000)
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| | Q1/ 2006 | Q2/ 2006 | Q3/ 2006 | Q4/ 2006 |
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--------------------------------------------------------------------------------
| NET SALES | 12 894 | 13 407 | 12 434 | 13 933 |
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| OPERATING PROFIT | 2 060 | 2 447 | 2 610 | 2 586 |
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| PROFIT FOR THE PERIOD UNDER | 2 480 | 1 868 | 2 964 | 9 792 |
| REVIEW | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Q1/ 2005 | Q2/ 2005 | Q3/ 2005 | Q4/ 2005 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 13 323 | 14 294 | 12 582 | 13 733 |
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| OPERATING PROFIT | 2 226 | 2 728 | 2 329 | 2 238 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD UNDER | 2 868 | 2 580 | 2 264 | 2 026 |
| REVIEW | | | | |
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| GROUP'S CONTINGENT LIABILITIES (EUR 1,000) | |
--------------------------------------------------------------------------------
| | 12/2006 | 12/2005 |
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| Collateral given for own debt | | |
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| Loans secured with mortgages | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 6 063 | 189 |
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| Given mortgages on property | 4 017 | 2 017 |
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| Given mortgages on company assets | 168 | 168 |
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| Mortgages total | 4 185 | 2 185 |
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| On behalf of others | | |
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| Guarantees | 16 | 16 |
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| Minimum lease payments on the basis of other | | |
| non-cancellable leases | | |
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| Not later than 1 year | 107 | 117 |
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| Later than 1 year and not later than 5 years | 214 | 321 |
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| Total | 321 | 438 |
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| STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |
| (EUR 1,000) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | Share | Share | Fair | Other | Retaine | Total |
| shareholders' | capital | issue | value | reserves | d | |
| equity | | premi | reserve | | earning | |
| 1-12/2005 | | um | | | s | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 3 259 | 166 | 385 | 13 103 | 27 500 | 44 413 |
| EQUITY | | | | | | |
| 1.1.2005 | | | | | | |
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| Available-for-sale | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Net fair | | | 1 328 | | | 1 328 |
| value gains | | | | | | |
--------------------------------------------------------------------------------
| Reclassified | | | -419 | | | -419 |
| and reported | | | | | | |
| in net profit | | | | | | |
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| Share of | | | -236 | | | -236 |
| deferred | | | | | | |
| taxes | | | | | | |
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| Net fair | | | 672 | | | 672 |
| value gains | | | | | | |
| added to | | | | | | |
| shareholders' | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | 9 739 | 9 739 |
| profit/loss | | | | | | |
--------------------------------------------------------------------------------
| Total profits | | | 672 | | 9 739 | 10 411 |
| and losses | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -7 822 | -7 822 |
| payment | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 3 259 | 166 | 1 057 | 13 103 | 29 418 | 47 003 |
| EQUITY TOTAL | | | | | | |
| 31.12.2005 | | | | | | |
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--------------------------------------------------------------------------------
| Change in | Share | Share | Fair | Other | Retaine | Total |
| shareholders' | capita | issue | value | reserves | d | |
| equity | l | premiu | reserve | | earning | |
| 1-12/2006 | | m | | | s | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 3 259 | 166 | 1 057 | 13 103 | 29 418 | 47 003 |
| EQUITY | | | | | | |
| 1.1.2006 | | | | | | |
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| Available-for- | | | | | | |
| sale assets | | | | | | |
--------------------------------------------------------------------------------
| Net fair value | | | 6 058 | | | 6 058 |
| gains | | | | | | |
--------------------------------------------------------------------------------
| Share of | | | -1 575 | | | -1 575 |
| deferred taxes | | | | | | |
--------------------------------------------------------------------------------
| Transfers | 407 | -166 | | -242 | | |
| between items | | | | | | |
--------------------------------------------------------------------------------
| Net fair value | 407 | -166 | 4 483 | -242 | | 4 483 |
| gains added to | | | | | | |
| shareholders' | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | 17 104 | 17 104 |
| profit/loss | | | | | | |
--------------------------------------------------------------------------------
| Total profits | 407 | -166 | 4 483 | -242 | 17 104 | 21 587 |
| and losses | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -7 822 | -7 822 |
| payment | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 3 666 | | 5 540 | 12 862 | 38 700 | 60 768 |
| EQUITY TOTAL | | | | | | |
| 31.12.2006 | | | | | | |
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| Official circulation volumes of newspapers | |
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| Ilkka | 55 277 |
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| Pohjalainen | 29 565 |
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| Härmät | 3 920 |
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| Jurvan Sanomat | 2 372 |
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| Järviseutu | 6 046 |
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| Suupohjan Sanomat | 4 465 |
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| Viiskunta | 6 667 |
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| Vaasan Ikkuna (delivery) | 53 800 |
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| Etelä-Pohjanmaa (delivery) | 41 500 |
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The financial statements have been prepared in accordance with the recognition
and measurement principles of the International Financial Reporting Standards
(IFRS), and applying the IAS and IFRS standards as well as SIC and IFRIC
interpretations in force as of 31 December 2006.
The above accounts are unaudited.
PROPOSALS TO THE ANNUAL GENERAL MEETING
The Board of Directors proposes to the AGM of 16 April 2007 that a per share
dividend of EUR 0.60 be distributed for 2006, together with an additional
payment of EUR 0.30 per share due to capital gains from the sale of Savon Mediat
Oy's shares.
PROPOSAL ON AUTHORISATION TO THE BOARD
The Board of Directors of Ilkka-Yhtymä Oyj proposes to the AGM of 16 April 2007
that the Board of Directors be authorised to decide upon a share issue and/or
granting stock options and/or other special rights and upon their conditions.
The proposed maximum number of Series II shares issued is 4,300,000,
corresponding to 29.32 per cent of the company's current shares.
The authorisation would include the right to issue shares and/or stock options
and/or other special rights as distinct from the shareholders' pre-emptive
rights, under conditions prescribed by law, and the right to decide upon a free
issue to the company itself.
The authorisation would be valid for three years from the date of the decision
of the AGM.
Seinäjoki, 19 February 2007
ILKKA-YHTYMÄ OYJ
Board of Directors
Matti Korkiatupa
Managing Director
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