2014-02-17 14:00:00 CET
2014-02-17 14:00:03 CET
REGULATED INFORMATION
Ilkka-Yhtymä Oyj - Financial Statement Release
The Ilkka-Yhtymä Group's Financial Statements for 2013
Ilkka-Yhtymä Oyj Financial Statements Bulletin, 17 February 2014, at 3 p.m.
THE ILKKA-YHTYMÄ GROUP'S FINANCIAL STATEMENTS FOR 2013
FINANCIAL YEAR 2013
- Net sales: EUR 44.9 million (EUR 46.2 million), down 2.7%
- Operating profit from the Group's own operations, excluding Alma Media
Corporation and the other associated companies, amounted to EUR 6.0 million
(EUR 5.9 million), up 1.6%
- Operating margin of the Group's own operations, excluding Alma Media
Corporation and the other associated companies, was 13.4 (12.8).
- The holding in the associated company Alma Media Corporation was written down
by EUR 27 million in the third quarter of 2013. The write-down has no impact on
cash flow.
- Reported operating loss was EUR 16.6 million (EUR 10.9 million) and reported
operating margin -37.0 (-23.5).
- Consolidated earnings per share including earnings of the associated
companies and excluding the write-down EUR 0.34 (EUR 0.31)
- Reported earnings per share EUR -0.71 (EUR -0.55)
- Equity ratio (44.2%) remained good (50.7% in 2012)
- The Board of Directors proposes a per share dividend of EUR 0.10
Q4/2013
- Net sales: EUR 11.7 million (EUR 11.9 million), down 1.4%
- Operating profit from the Group's own operations, excluding Alma Media
Corporation and the other associated companies, amounted to EUR 1.8 million
(EUR 1.6 million), up 14.6%
- Operating margin of the Group's own operations, excluding Alma Media
Corporation and the other associated companies, was 15.7 (13.5)
- Reported operating profit was EUR 1.3 million (following the EUR 22 million
non-recurring write-down on the holding in the associated company Alma Media
Corporation, the Group's reported operating loss was EUR 20.6 million for
Q4/2012) and reported operating margin 10.9 (-173.2).
- Consolidated earnings per share including earnings of the associated
companies and excluding the Q4/2012 write-down EUR 0.02 (EUR 0.03)
- Reported earnings per share EUR 0.02 (EUR -0.83)
MATTI KORKIATUPA, MANAGING DIRECTOR:
“The business environment in the media sector was challenging due to the poor
economic climate and competition driven by digitalisation. The declining
advertising market of the first half of 2013 perked up in the summer, only to
fall again in the second half owing to consumer caution. Media advertising
dropped by 8.1% in all of Finland and by 15.8% in printed newspapers.
Circulation volumes decreased as weak economic growth and advertiser-funded
content accelerated the change of consumer behaviour. Despite the weaker
business environment, the net sales and profitability of our publishing
operations remained reasonable. We were most successful in printing, where the
net sales and profitability of both the rotary and sheet-fed/digital press
remained at a good level, despite the declining overall market.
In the second half of the year, we cut down expenses to adjust our operations
to the lower-than-expected net sales. We will continue to implement our
strategic projects, which are aimed at ensuring the Group's success in the
coming years. We agreed on voluntary cost-saving measures with our employees,
of which the conversion of part of the holiday bonuses to leave had the
greatest economic impact.
Our long-term editorial collaboration with Väli-Suomen Media ended at the close
of 2013. Cooperation with Alma Regional Media began and was gradually expanded
over the course of 2013. Keskipohjanmaa will also join the consortium at the
beginning of 2014. In addition, our editorial collaboration with Kaleva and
Turun Sanomat has been reinforced by editorial staff for international news and
thematic stories.
Experiences from the corporate marketing method revised in early 2013 have been
positive in terms of customer feedback and results. Our multi-channel
advertising sales serve our customers better, and sales results were favourable
in the light of industry results.
The publishing company's largest development projects have been the corporate
marketing sales management system and the product development and marketing
project for digital papers. I-print's greatest investments were made in the
modernisation of its mailing equipment and the deployment of a new digital
printing press.
In the ongoing year, the most important operational change will concern
aligning the editorial board's mode of operation with the new Lännen Media
cooperation network. We have not reached a decision on the format change of our
provincial newspapers, but we are carrying out surveys and preparations for a
potential future change to the tabloid format. We are also working on
increasing the proportion of digital content available for a charge.
The cost-effective and comprehensive delivery of newspapers is becoming
increasingly important following the strategy revision of state-owned Itella
due to declining letter and newspaper volumes. Retaining five-day delivery in
sparsely populated areas is important for the equality of newspapers'
customers.
In order to further improve working atmosphere and the productivity of our
operations, we will continue to invest in employee well-being, competencies and
renewing of working methods, along with equipment and systems to support these.
We have strong faith that the Group will succeed if we emphasise customer
focus, local presence and the related community spirit in our operations. As a
provincial, multi-channel media company, we complement our products and
services through partnerships. We listen with a keen ear to the needs of local
customers and leverage the quality and cost benefits provided by our networked
operations.”
BUSINESS ENVIRONMENT
In its Economic Bulletin of 19 December 2013, the Ministry of Finance projects
GDP contraction of approximately 1.2% in 2013. In 2014, GDP growth is expected
to come in at 0.8%. According to Statistics Finland, the inflation rate reached
1.6% in December, while the average inflation rate for 2013 stood at 1.5%.
The latest consumer survey of Statistics Finland, published in January, shows
that consumer confidence in the economy is higher than a year ago, but slightly
below the long-term average. Private consumption is estimated to have decreased
by 0.6% in 2013. The projected growth for private consumption in 2014 is in the
region of 0.2%.
According to a survey conducted by TNS Gallup Oy and commissioned by the
Finnish Advertising Council, media advertising decreased by 8.1% in 2013.
Advertising in newspapers fell by 15.8%, while advertising in free sheets
decreased by 15.2%. Newspapers and free sheets accounted for 34.7% and 5.4% of
media advertising, respectively. Web media advertising saw an increase of 6.8%,
representing a 19.7% share of media advertising.
GROUP STRUCTURE
The Ilkka-Yhtymä Group is a media group that consists of the parent company
Ilkka-Yhtymä Oyj, the publishing company I-Mediat Oy, as well as the printing
company I-print Oy. The Group also includes two property companies, Kiinteistö
Oy Seinäjoen Koulukatu 10 and Seinäjoen Kassatalo Osakeyhtiö, as well as
Pohjalaismediat Oy. Our main products are the regional newspapers Ilkka and
Pohjalainen, five local newspapers (Viiskunta, Komiat, Järviseutu, Suupohjan
Sanomat and Jurvan Sanomat), two free sheets (Vaasan Ikkuna and
Etelä-Pohjanmaa), including the online and mobile services of these papers, and
I-print Oy's printing and communications services.
The associated companies included in our consolidated financial statements are
Alma Media Corporation, Arena Partners Oy, Väli-Suomen Media Oy and Yrittävä
Suupohja Oy.
CONSOLIDATED NET SALES AND PROFIT PERFORMANCE
Consolidated net sales decreased by 2.7%, amounting to EUR 44,893 thousand (EUR
46,158 thousand in 2012). External net sales from publishing operations
decreased by 5.7%. Advertising revenues fell by 11%, and circulation revenues
remained at the previous year's level. External net sales from the printing
business increased by 18.3%. Circulation income accounted for 43% of
consolidated net sales, while advertising income and printing income
represented 41% and 15%, respectively. Other operating income totalled EUR 392
thousand (EUR 437 thousand).
The Group operating expenses for the financial year amounted to EUR 39,293
thousand (EUR 40,689 thousand), down by 3.4% year-on-year. Expenses arising
from materials and services increased by 3.6%. Personnel expenses decreased by
4.5%. In cooperation with employees, voluntary cost savings measures were
agreed in May 2013, corresponding to approximately one week of holiday pay
leave in 2013. Other operating costs decreased by 4.3%. Depreciation contracted
by 28.8%.
The share of the associated companies' result was EUR -22,630 thousand
following the write-down (EUR -16,774 thousand in 2012). In the third quarter
of 2013 a EUR 27 million write-down has been recorded on the holding in the
associated company Alma Media Corporation as a result of an impairment test
(EUR 22 million in Q4/2012). The write-down has no impact on cash flow.
Operating profit from the Group's own operations, excluding Alma Media
Corporation and the other associated companies, amounted to EUR 5,999 thousand
(EUR 5,906 thousand), representing 13.4% (12.8%) of net sales. Consolidated
operating profit including earnings of the associated companies and excluding
the EUR 27 million (EUR 22 million) write-down was EUR 10,369 thousand (EUR
11,132 thousand). Reported operating loss was EUR 16,631 thousand (EUR 10,868
thousand). Reported operating margin was -37.0 (-23,5).
Net financial expenses amounted to EUR 347 thousand (EUR 2,550 thousand). Net
gain/loss on shares held for trading was EUR 22 thousand (EUR -99 thousand).
Interest expenses excluding the fair value change in derivatives hedging them
totalled EUR 1,789 thousand (EUR 2,184 thousand). In order to hedge against
interest rate risk, in 2010 the company transformed some of its floating-rate
liabilities into fixed-rate liabilities, by means of interest rate swaps. Given
that the Group does not apply hedge accounting, unrealised changes in the
market value of the interest rate swaps are recognised through profit or loss.
For the 2013 financial year, the market value of these interest rate swaps grew
by EUR 734 thousand (in 2012, the market value fell by EUR 920 thousand).
Profit before tax including earnings of the associated companies and excluding
the EUR 27 million (EUR 22 million) write-down was EUR 10,022 thousand (EUR
8,582 thousand) and reported loss before tax was EUR 16,978 thousand (EUR
13,418 thousand). Direct taxes amounted to EUR 1,199 thousand (EUR 669
thousand). Consolidated profit for the period including earnings of the
associated companies and excluding the write-down was EUR 8,822 thousand (EUR
7,913 thousand) and reported loss was EUR 18,178 thousand (EUR 14,087
thousand). Earnings per share including earnings of the associated companies
and excluding the write-down were EUR 0.34 (EUR 0.31) and the reported earnings
per share EUR -0.71 (EUR -0,55).
Q4 NET SALES AND PROFIT PERFORMANCE
In Q4/2013, consolidated net sales totalled EUR 11,707 thousand (EUR 11,877
thousand), down by 1.4%. External net sales from publishing operations
decreased by 5.1%. External net sales from the printing business grew by 23.2%.
Circulation income accounted for 42% of consolidated net sales in
October-December, while advertising income and printing income represented 42%
and 16%, respectively. Other operating income in October-December totalled EUR
97 thousand (EUR 95 thousand).
In Q4, the Group's expenses totalled EUR 9,964 thousand (EUR 10,362 thousand),
down by 3.8%. For October-December 2013, the share of the associated companies'
result was EUR -565 thousand (in October-December 2012, EUR -22,180 thousand
following the EUR 22 million write-down).
In the fourth quarter, operating profit from the Group's own operations,
excluding Alma Media Corporation and the other associated companies, amounted
to EUR 1,838 thousand (EUR 1,604 thousand), representing 15.7% (13.5%) of net
sales. Consolidated operating profit including earnings of the associated
companies was EUR 1,273 thousand (in October-December 2012, EUR 1,424 thousand
excluding the EUR 22 million write-down). Reported operating profit was EUR
1,273 thousand (operating loss EUR 20,576 thousand in October-December 2012).
Reported operating margin was 10.9 (-173.2).
Net financial expenses amounted to EUR 386 thousand (EUR 424 thousand). Net
gain/loss on shares held for trading was EUR -40 thousand (EUR 102 thousand).
Interest expenses excluding the fair value change in derivatives hedging them
totalled EUR 450 thousand (EUR 482 thousand). In October-December 2013, the
market value of interest rate swaps grew by EUR 80 thousand (in
October-December 2012, the market value fell by EUR -65 thousand).
Q4 profit including earnings of the associated companies was EUR 581 thousand
(in October-December 2012, EUR 715 thousand excluding the write-down on the
holding in the associated company) and reported profit was EUR 581 thousand
(loss EUR 21,285 thousand for October-December 2012).
CONSOLIDATED BALANCE SHEET AND FINANCING
The consolidated balance sheet total came to EUR 133,802 thousand (EUR 160,823
thousand), with EUR 58,091 thousand (EUR 80,567 thousand) of equity. In the
third quarter of 2013 a EUR 27 million write-down has been recorded on the
holding in the associated company Alma Media as a result of an impairment test
(EUR 22 million write-down in Q4/2012). The write-down has no impact on cash
flow. On the reporting date of 31 December 2013, the balance sheet value of the
holding in the associated company, Alma Media Corporation, was EUR 102,7
million following the write-down and the market value of the shares was EUR
67.2 million. According to the management's estimate, there is currently no
need for an impairment write-down of this holding.
The Group parent company, Ilkka-Yhtymä Oyj, has recorded a write-down of EUR
49.0 million in the FAS-compliant 2013 separate financial statements. The
write-down is related to the carrying amount of the shares in the associated
company, Alma Media Corporation. The write-down equals the earlier write-downs
made in the Group's IFRS reporting. The FAS-compliant write-down decreases the
parent company's distributable funds. Following the write-down, the parent
company's distributable funds on 31 December 2013 total EUR 53,792 thousand
(EUR 97,691 thousand on 31 December 2012).
At the end of the financial year, interest-bearing liabilities totalled EUR
66,379 thousand (EUR 70,587 thousand on 31 December 2012). Loan maturities of
the company's interest-bearing liabilities range from 3 to 7 years.
In order to hedge against interest rate risk, in 2010, the company transformed
some of its floating-rate liabilities to a fixed rate, by means of interest
rate swaps. Presently, some 45% of the loans in the company's total loan
portfolio have a fixed rate and some 55% a floating rate. These hedging
measures included, the average interest rate for interest-bearing liabilities
on 31 December 2013 came to 2.53%. The loan providers of the loans taken out at
the end of the 2010 financial year have the opportunity to adjust the loan
margin five years after the loans have been drawn. At the end of the 2013
financial year, these loans amounted to EUR 24.7 million.
As at 31 December 2013, the impact of floating-rate interest-bearing
liabilities on profit before taxes would have amounted to -/+ EUR 362 thousand
over the next 12 months, if the interest level increases or decreases by one
percentage point. Of interest-bearing liabilities existing during the 12 months
following the financial year, a total of EUR 5,914 thousand will fall due for
payment.
With regard to liquidity, the year-end current ratio stood at 0.45 (0.47).
Group net gearing was at 108.7% (82.7%) at the end of the financial period.
Equity ratio was at 44.2% (50.7%) and shareholders' equity per share stood at
EUR 2.26 (EUR 3.14). Cash and cash equivalents amounted to EUR 1,980 thousand
(EUR 2,263 thousand). Cash flow from operations totalled EUR 8,502 thousand
(EUR 7,976 thousand). This includes EUR 6.3 million (EUR -1.0 million) from the
Group's own operations as well as EUR 2.2 million (EUR 9.0 million) of dividend
income from Alma Media Corporation. Due to VAT changes, 2012 subscription fees
for the Group's provincial newspapers were exceptionally invoiced in the amount
of EUR 6.6 million in December 2011. Cash flow from investments totalled EUR
-750 thousand (EUR -570 thousand).
PUBLISHING
The Group's publishing segment comprises the publishing company I-Mediat Oy.
During the year, net sales from publishing totalled EUR 38,257 thousand (EUR
40,528 thousand). Net sales from the publishing business decreased by 5.6%.
This fall was caused by the weakening of the advertising market due to the
economic conditions and competition. Advertising revenues fell by 11% and
circulation revenues remained at the previous year's level. Operating profit
from publishing decreased by 9% year-on-year, to EUR 4,594 thousand (EUR 5,046
thousand).
Due to Finland's weak and uncertain economic situation, it is difficult to
forecast media income in 2014. Media advertising is projected to remain almost
unchanged from the previous year, and newspaper circulation income is expected
to fall. Net sales of I-Mediat Oy are expected to remain almost at the same
level as before.
PRINTING
The printing segment comprises the printing house I-print Oy. The segment's net
sales amounted to EUR 13,763 thousand (EUR 13,710 thousand). Net sales remained
at the previous year's level. External net sales from the printing business
increased by EUR 1,052 thousand (18.3%). Operating profit from printing
increased by 32.5% year-on-year, to EUR 1,827 thousand (EUR 1,379 thousand).
In 2014, the market circumstances in the printing business sector will be more
difficult than in 2013, as overcapacity will continue in the Finnish graphics
industry and the total volume in the printed products market will fall. The
rise in raw material and energy costs is expected to be moderate. I-print Oy's
net sales are projected to decrease from the 2013 level.
ASSOCIATED COMPANIES
Ilkka-Yhtymä Group's associated companies are Alma Media Corporation (29.79%),
Arena Partners Oy (37.82%), Väli-Suomen Media Oy (40%) and Yrittävä Suupohja Oy
(38.46%).
Alma Media focuses on publishing operations and digital consumer and corporate
services. Its high-profile newspapers are Aamulehti, Iltalehti and Kauppalehti.
Ilkka-Yhtymä's provincial newspapers Ilkka and Pohjalainen and Alma Media's
regional and local newspaper division Alma Regional Media initiated extensive
operational collaboration on content and development. Ilkka-Yhtymä's publishing
company I-Mediat Oy and Alma Media Kustannus Oy (Alma Media Publishing Ltd)
signed a cooperation agreement on 18 December 2012. The collaboration was
implemented gradually from the beginning of 2013. The collaboration is in full
swing from early 2014. The agreement does not include any issues related to the
ownership of Ilkka-Yhtymä Oyj and Alma Media Corporation.
Arena Partners Oy is a digital business development and production company
jointly owned by five provincial newspaper companies. Arena Partners owns a 35%
share of Alma Mediapartners Oy, which is Alma Media's housing sales, vehicle
and consumer advertising marketplace company operating in Finland. The Arena
Partners Group includes the subsidiary Arena Interactive Oy (65%), focusing on
mobile services, the recruitment agency Uranus Oy (35%) and Adfore Technologies
Oy (11.8%).
Väli-Suomen Media Oy produces a joint Sunday magazine (Sunnuntaisuomalainen)
for the region's newspapers. At the end of 2013, Ilkka-Yhtymä dissociated
itself from the services produced by Väli-Suomen Media. At the beginning of
2014 it will also divest ownership. Yrittävä Suupohja Oy publishes Suupohjan
Seutu, a free sheet distributed in the Suupohja region.
RESEARCH AND DEVELOPMENT EXPENSES
In the Group's publishing business, product development for multiple channels
has been carried out with Arena Partners Oy, its shareholding newspapers and
the Next Media programme of Finnmedia (Federation of the Finnish Media
Industry). Product development has been focused on customer-oriented services
relating to news reporting, transactions and communities. With regard to the
Group's printing business, the focus was on the development of value-added
services and products.
CAPITAL EXPENDITURE
Reported capital expenditure for the year totalled EUR 1,423 thousand, with
printing accounting for EUR 1,022 thousand and publishing for EUR 190 thousand.
ANNUAL GENERAL MEETING, SUPERVISORY BOARD AND BOARD OF DIRECTORS
On 18 April 2013, the Annual General Meeting (AGM) of Ilkka-Yhtymä Oyj approved
the financial statements, discharged the members of the Supervisory Board and
the Board of Directors and the Managing Director from liability and decided
that a per-share dividend of EUR 0.15 be paid for the year 2012.
The number of members on the Supervisory Board for 2013 was confirmed to be 25.
Of the Supervisory Board members whose term had come to an end, the following
were re-elected for the term ending in 2017: Markku Akonniemi (Töysä), Juhani
Hautamäki (Ylivieska), Heikki Järvi-Laturi (Teuva), Petri Latva-Rasku (Tampere)
ja Marja Vettenranta (Laihia). The employee representatives Terhi Ekola (Vaasa)
and Niina Vuolio (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 of the Supervisory Board and the board members at their current
level: the Chairman will receive a retainer of EUR 1,500 per month and a fee of
EUR 400 per meeting, and the board members will be paid a fee of EUR 400 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 Accountant, M.Sc.(Econ.) Harri Pärssinen as the
principal auditor. It was decided that the auditors would be reimbursed per the
invoice.
The AGM authorised the Board of Directors to decide upon a donation to be put
toward charitable causes or similar, totalling, at maximum, EUR 50,000, as well
as to decide upon the recipients, purposes of use, schedules and other terms of
these donations.
On 6 May 2013, the Supervisory Board re-elected Sari Mutka, whose term had come
to an end, to the Board of Directors of Ilkka-Yhtymä Oyj. Lasse Hautala will
continue as 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.
SHARE PERFORMANCE
At the end of 2013, the company's share capital totalled EUR 6,416,302. The
number of shares was 25,665,208, of which 4,304,061 were Series I shares (20
votes per share) and 21,361,147 were Series II shares (1 vote per share).
Shares of both series entitle the holders to the same dividend.
According to the Articles of Association, a single shareholder at a General
Meeting may not use more than one twentieth (1/20) of the entire number of
votes represented in a 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 were listed on the Helsinki Stock
Exchange in 1981 and have remained listed ever since. The Series II shares have
been listed since their issue in 1988, and on 10 June 2002 they were
transferred from the I List of the Helsinki Stock Exchange to the Main List. At
present, the Series II shares of Ilkka-Yhtymä Oyj are listed on the NASDAQ OMX
Helsinki List, in the Consumer Services sector, the company's market value
being classified as Small Cap. The Series I shares are listed on the Pre List.
The number of Series I shares of Ilkka-Yhtymä Oyj traded in 2013 was 52,945,
which represents 1.2% of the series share stock. The trading value of shares
was EUR 0.3 million. The number of Series II shares traded totalled 2,059,508,
which equals 9.6% of the series share stock. Their trading value was EUR 7.0
million. During the report period, the lowest quotation for Ilkka-Yhtymä Oyj's
Series I share was EUR 4.36 and the highest EUR 7.95, while the lowest
quotation for a Series II share was EUR 2.76 and the highest EUR 5.19. At the
period-end closing price, the share capital market value was EUR 81.9 million.
The Board of Directors has an effective authorisation to decide upon a share
issue and/or granting stock options and/or other special rights and upon their
conditions. On 4 November 2010, Ilkka-Yhtymä Oyj purchased 7,250,000 shares in
Alma Media Corporation from Oy Herttaässä Ab. From the share purchase price,
EUR 30 million was paid in cash. In addition, Ilkka-Yhtymä decided to issue
freely negotiable convertible bonds, with a value of EUR 20.0 million, to the
seller. The bond issue decision taken by Ilkka-Yhtymä's Board of Directors is
based on the authorisation granted to it by the AGM on 19 April 2010.
In addition to this, the company has not issued any option rights or other
special rights.
The Board of Directors is not authorised to acquire or sell the company's own
shares.
PERSONNEL
The average number of employees (full-time equivalents) was 321 (336 in 2012).
In the year under review, the Group had, on average, 365 (379) employees with
employment contracts. On 31 December 2013, the Group had 312 full-time
employees (332).
Ilkka-Yhtymä Group's entire personnel has been covered by an incentive scheme
since 2000. According to the Articles of Association, Ilkka-Yhtymä Oyj's
Supervisory Board must include two employee representatives.
In cooperation with employees, voluntary cost savings measures were agreed in
May 2013, corresponding to approximately one week of holiday pay leave in 2013.
In November, the Board of Directors of I-Mediat Oy elected Toni Viljanmaa (MA)
as new editor-in-chief of the newspaper Pohjalainen, to replace the retiring
editor-in-chief Kalle Heiskanen. Mr Viljanmaa took up his post at the beginning
of January 2014.
In December, the Board of Directors of Ilkka-Yhtymä Oyj elected Olli Pirhonen,
M.Sc.(Econ.), as new Group Chief Financial Officer, to replace Paula Anttila.
Mr Pirhonen took up his post at the beginning of February 2014.
ESTIMATED OPERATING RISKS AND UNCERTAINTIES
Ilkka-Yhtymä's most significant short-term risks are related to the development
of media advertising, as well as circulation and printing volumes. In a weak
economic climate, these risks affect the entire sector. In the longer term,
there is a risk of a potential decrease in circulation and advertising volumes,
if consumers choose to switch to competitors' alternative digital services.
Through its holding in Alma Media stock, the company is also exposed to risks
related to Alma Media's profit-making capacity, dividend policy and the price
development of its shares.
Communications industry
The company estimates that the Group's core operations only involve risks
normally associated with the industry, which are increasing due to the changes
taking place in the business environment. Such industry risks are mainly
related to the development of media advertising and content consumption, since
more and more alternatives are being offered to consumers and advertisers. A
prolonged weak economic situation and a slow recovery may have a negative
impact on the consumption of media products and services. Competition in the
industry is being affected by the digitalisation of content and advertising,
the emergence of new distribution channels, growth in advertiser-funded
content, changes in media use and ways of spending time, as well as by the new
operating methods and the actors these are enabling.
Publishing
In the long term, regional demographic and economic developments will have an
impact on provincial and local newspapers' circulation and advertising income.
A healthy circulation coverage percentage, a competitive contact price and
strong relationships with readers are enhancing provincial and local
newspapers' competitiveness in the advertising market. The strong growth seen
in the volumes of online and mobile users has extended the overall reach of
provincial newspapers.
In general, ordinary economic cycles have not had a major impact on local or
provincial newspapers' circulation income. On the other hand, media advertising
volumes reflect changes in economic cycles, competitive situations and the
outlook of advertisers' own industries. Media sales took a downturn in spring
2012, and the trend continued in 2013.
Economic cycles, the regional volume of the advertising market and other
competitive conditions all have an influence on the rate of market entry and
exit of new media, such as free sheets and digital services. Like most other
newspaper groups, Ilkka-Yhtymä has years of experience of its own free sheets
and digital services. High quality and local customer relationships give a
competitive edge.
Due to the consumer behaviour enabled by new technology, some classified
advertisements, such as car, housing and job advertisements, have shifted
online. In response to this development, Ilkka and Pohjalainen are engaged in
collaboration with Arena Partners. Arena Partners Oy has acquired a 35% holding
in the Etuovi.com, Vuokraovi.com and Autotalli.com services displaying housing
and car advertisements. This will enable us to provide the sector's best
services to customers. New players in the market include international search
engine and other companies.
In order to face the challenges posed by changing reading habits among young
people and the growing volumes of online content available for consumers free
of charge, Ilkka-Yhtymä Group is providing its provincial newspapers' premium
online and mobile services for the benefit of the region's consumers. In line
with the allied Arena Partners' strategy, the aim is for these services to
become the leading place for digital news, services, transactions and commerce
for consumers, communities and companies in our operating provinces.
Graphics
The aggressive price competition in Finland's printing sector is continuing.
Developments in circulation and advertising volumes are reflected in the
numbers of pages in newspapers, while general economic trends are affecting the
use of other advertising media. Exports to the Nordic countries are dependent
not only on market conditions, but also on the development of exchange rates.
The availability of newsprint has been good and price developments in recent
years have been moderate, in spite of large annual pricing fluctuations and the
fact that the paper industry has downsized its capacity. Pricing pressures will
increase in the future, since the paper industry's capacity cuts were intended
to safeguard future profitability. I-print Oy has prepared for both
availability and price risks by spreading purchases among suppliers and through
joint procurement with Alma Media Corporation's, Keskisuomalainen Oyj's and
Kaleva Oy's printing houses.
Newspaper distribution has been outsourced to Itella Oyj. The short-term risks
in delivery operations mainly concern price developments. The price risk
depends on the pay development of deliverers, competition between delivery
companies and the reform of the Postal Services Act. In the longer term, the
availability of distribution services as well as the related price risks will
increase.
Financial risks
The Group is exposed to an interest-rate risk and a risk associated with share
prices. The Group's interest-rate risk consists of changes in market interest
rates applied in the loan portfolio. The company follows an interest-rate
management policy confirmed by the Board of Directors. With respect to
interest-rate risk management, the goal is to reduce the volatility of interest
expenses in order to keep interest expenses, and the associated risk that they
will grow, at an acceptable level. Interest-rate risk is managed by selecting
both fixed and floating interest rates in loans, and using interest-rate fixing
periods. If necessary, in order to hedge against interest-rate risk, the
company can rely on interest rate swaps, interest rate options and their
combinations. The Group's loan arrangements and hedging against interest-rate
risk have been described in further detail above, under ‘Consolidated balance
sheet and financing'. The company's loan arrangements involve ordinary
collaterals and no special covenants.
In its operations, the Group is exposed to price risks arising from the
volatility of market prices of quoted shares. In order to ensure the
availability and flexibility of financing, the Group has available credit
limits. On 31 December 2013, unused credit limits totalled EUR 13 million (On
31 December 2012, EUR 13 million).
EVENTS AFTER THE FINANCIAL YEAR
In February 2014, I-Mediat Oy, a subsidiary of Ilkka-Yhtymä Oyj, and five other
newspaper publishers (Keski-Pohjanmaan Kirjapaino Oyj, Alma Media Kustannus Oy,
Kaleva Oy, Hämeen Sanomat Oy, and Turun Sanomat Oy) signed a letter of intent,
which will act as the basis for plans to significantly strengthen and expand
their current journalistic collaboration.
The newspapers Ilkka, Pohjalainen, Keskipohjanmaa, Aamulehti, Satakunnan Kansa,
Lapin Kansa, Kainuun Sanomat, Pohjolan Sanomat, Kaleva, Hämeen Sanomat, Forssan
Lehti, and Turun Sanomat are planning to establish during 2014 an editorial
undertaking called Lännen Media. The new company would produce shared content
for all the newspapers.
In the event of the collaboration becoming reality, Lännen Media Oy would
provide its 12 stakeholder newspapers with news items on national politics and
the economy as well as social issues. Furthermore, Lännen Media would produce
foreign news, weekend supplement material, themed content and national online
news items for the use of its stakeholder newspapers.
Lännen Media would act as a joint editorial house, with journalists located
around Finland. Because it would produce ready-to-publish shared content, each
individual newspaper would be free to dedicate its resources to boosting local
content and service. The joint editorial house would comprise around 40
journalists.
At the same time, the stakeholder newspapers in Lännen Media would intensify
their cooperation in other journalistic content, collaborating in design,
product development and training. Lännen Media's principal goal would be to
accelerate product development in the field of digital content.
THE BOARD'S PROPOSAL ON PROFIT SHARING
The Board of Directors proposes to the Annual General Meeting of 24 April 2014
that a per-share dividend of EUR 0.10 be paid for the financial year 2013,
representing a total dividend payment of EUR 2,566,520.80. Dividends will be
distributed to those who are listed on the record day, 29 April 2014, as
shareholders in the Ilkka-Yhtymä Oyj's list of shareholders, maintained at
Euroclear Finland Oy. Dividend payments are issued on 7 May 2014. On 31
December 2013, the parent company's distributable funds amounted to EUR
53,792,075.63.
No substantial changes have taken place in the company's financial position
since the end of the financial year. In the view of the Board of Directors, the
proposed dividends do not jeopardise the company's liquidity.
Ilkka-Yhtymä Oyj practises an active dividend policy and aims to distribute at
least half of its consolidated annual income as dividend payments. However,
dividend distribution is affected not only by the earnings trend, but also by
the Group's financial standing, the financing required for profitable growth
and the company's future outlook and development needs.
PROSPECTS FOR 2014
In the current economic climate, forecasting net sales in the media sector and,
in particular, media advertising spending involves major uncertainties. Media
advertising is expected to remain roughly at the previous year's level and, due
to caution among consumers as well as competition in the media market,
newspaper circulation income is forecast to shrink. Printing business volumes
have shrunk in Finland and the trend is expected to continue in 2014.
The net sales of Ilkka-Yhtymä Group are estimated to remain almost at the 2013
level.
Group operating profit from Ilkka-Yhtymä's own operations, excluding the share
of Alma Media's and other associated companies' results, are expected to
decline from the 2013 level.
The associated company Alma Media Corporation (Group ownership 29.79%) will
have a significant impact on Group operating profit and profit.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2013 2012 % 2013 2012 %
NET SALES 11 707 11 877 -1 44 893 46 158 -3
Change in inventories of -2 -6 73 6
finished and unfinished
products
Other operating income 97 95 2 392 437 -10
Materials and services -3 661 -3 454 6 -14 484 -13 980 4
Employee benefits -4 274 -4 608 -7 -17 020 -17 824 -5
Depreciation -519 -679 -24 -2 078 -2 918 -29
Other operating costs -1 511 -1 622 -7 -5 711 -5 966 -4
Share of associated -565 -22 180 97 -22 630 -16 774 -35
companies' profit *)
OPERATING PROFIT/ LOSS 1 273 -20 576 106 -16 631 -10 868 -53
Financial income and expenses -386 -424 9 -347 -2 550 86
PROFIT/ LOSS BEFORE TAX 887 -21 000 104 -16 978 -13 418 -27
Income tax -306 -285 7 -1 199 -669 79
PROFIT/ LOSS FOR THE PERIOD 581 -21 285 103 -18 178 -14 087 -29
UNDER REVIEW
Earnings per share, undiluted 0.02 -0.83 103 -0.71 -0.55 -29
(EUR)**)
The undiluted share average 25 665 25 665 25 665 25 665
(to the nearest thousand)**)
*) Includes non-recurring write-down on the holding in the associated company
Alma Media Corporation, Q3/2013: EUR 27 million, Q4/2012: EUR 22 million.
**) There are no factor diluting the figure.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(EUR 1,000) 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2013 2012 % 2013 2012 %
PROFIT/ LOSS FOR THE PERIOD 581 -21 285 103 -18 178 -14 087 -29
UNDER REVIEW
OTHER COMPREHENSIVE INCOME:
Items that may be
reclassified subsequently to
profit or loss:
Available-for-sale assets 2 -3 178
Share of associated -235 -72 -228 -342 100 -440
companies' other
comprehensive income
Income tax related to 12 11 1 1405
components of other
comprehensive income
Other comprehensive income, -223 -72 -210 -328 98 -434
net of tax
TOTAL COMPREHENSIVE INCOME 358 -21 357 102 -18 506 -13 989 -32
FOR THE PERIOD
SEGMENT INFORMATION
NET SALES BY SEGMENT
(EUR 1,000) 10-12/ 10-12/ Change % 1-12/ 1-12/ Change %
2013 2012 2013 2012
Publishing
External 9 809 10 336 -5 38 098 40 414 -6
Inter-segments 44 25 76 159 113 40
Publishing total 9 853 10 360 -5 38 257 40 528 -6
Printing
External 1 898 1 541 23 6 795 5 743 18
Inter-segments 1 773 2 022 -12 6 968 7 967 -13
Printing total 3 671 3 563 3 13 763 13 710
Non-allocated
Inter-segments 568 538 6 2 269 2 139 6
Non-allocated total 568 538 6 2 269 2 139 6
Elimination -2 385 -2 585 -8 -9 395 -10 219 -8
Group net sales total 11 707 11 877 -1 44 893 46 158 -3
OPERATING PROFIT/ LOSS BY SEGMENT
(EUR 1,000) 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2013 2012 % 2013 2012 %
Publishing 1 339 1 440 -7 4 594 5 046 -9
Printing 573 367 56 1 827 1 379 33
Associated companies -565 -22 180 97 -22 630 -16 774 -35
Non-allocated -74 -203 64 -422 -519 19
Group operating profit/ 1 273 -20 576 106 -16 631 -10 868 -53
loss total
ASSETS BY SEGMENT
(EUR 1,000) 12/2013 12/2012 Change %
Publishing 9 252 13 477 -31
Printing 8 788 9 831 -11
Non-allocated 115 762 137 516 -16
Group assets total 133 802 160 823 -17
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 12/2013 12/2012 Change %
ASSETS
NON-CURRENT ASSETS
Intangible rights 789 1 008 -22
Goodwill 314 314
Investment properties 182 233 -22
Property, plant and equipment 11 459 11 862 -3
Shares in associated companies 103 492 128 796 -20
Available-for-sale assets 10 668 10 723 -1
Other tangible assets 214 214
TOTAL NON-CURRENT ASSETS 127 118 153 151 -17
Current assets
Inventories 483 647 -25
Trade and other receivables 2 866 2 950 -3
Income tax assets 96 118 -19
Financial assets at fair value 1 259 1 695 -26
through profit or loss
Cash and cash equivalents 1 980 2 263 -12
TOTAL Current assets 6 684 7 673 -13
Total assets 133 802 160 823 -17
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDER'S EQUITY
Share capital 6 416 6 416
Invested unrestricted equity fund and other reserves 48 635 48 621
Retained earnings 3 040 25 529 -88
SHAREHOLDER'S EQUITY 58 091 80 567 -28
NON-CURRENT LIABILITIES
Deferred tax liability 216 23 831
Non-current interest-bearing liabilities 60 432 63 954 -6
Non-current interest-free liabilities 88 102 -13
NON-CURRENT LIABILITIES 60 736 64 079 -5
CURRENT LIABILITIES
Current interest-bearing liabilities 5 947 6 633 -10
Accounts payable and other payables 8 768 9 390 -7
Income tax liability 260 155 68
CURRENT LIABILITIES 14 975 16 177 -7
SHAREHOLDERS' EQUITY AND LIABILITIES TOTAL 133 802 160 823 -17
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1-12/ 1-12/
2013 2012
CASH FLOW FROM OPERATIONS
Profit/ loss for the period under review -18 178 -14 087
Adjustments 26 229 22 867
Change in working capital 408 -6 732
CASH FLOW FROM OPERATIONS 8 459 2 048
BEFORE FINANCE AND TAXES
Interest paid -1 749 -2 235
Interest received 35 46
Dividends received 2 344 9 117
Other financial items 333 -53
Direct taxes paid -920 -947
CASH FLOW FROM OPERATIONS 8 502 7 976
CASH FLOW FROM INVESTMENTS
Investments in tangible and -1 398 -1 083
intangible assets, net
Other investments, net 121 -16
Dividends received from investments 528 529
CASH FLOW FROM INVESTMENTS -750 -570
CASH FLOW BEFORE FINANCING ITEMS 7 753 7 406
CASH FLOW FROM FINANCING
Change in current loans -4 217 -3 925
Change in non-current loans -1 964
Dividends paid and other profit distribution -3 818 -10 180
CASH FLOW FROM FINANCING -8 035 -16 069
INCREASE (+) OR DECREASE (-)IN FINANCIAL ASSETS -282 -8 663
Liquid assets at the beginning of the financial period 2 263 10 926
Liquid assets at the end of the financial period 1 980 2 263
KEY FIGURES
2013 2012
Net sales, Meur 44.9 46.2
change % -2.7 -7.6
Operating profit/ loss, Meur -16.6 -10.9
% of net sales -37.0 -23.5
Profit/ loss before tax, Meur -17.0 -13.4
% of net sales -37.8 -29.1
Profit/ loss for the financial period, Meur -18.2 -14.1
% of net sales -40.5 -30.5
Return on equity (ROE), % -26.2 -15.2
Return on investment (ROI), % -11.6 -6.2
Equity ratio, % 44.2 50.7
Net gearing, % 108.7 82.7
Gross capital expenditure, Meur *) 1.4 1.3
% of net sales 3.2 2.8
Balance sheet total, Meur 133.8 160.8
Current ratio 0.45 0.47
Average no. of employees 321 336
Earnings per share (EPS), eur -0.71 -0.55
Cash flow from operations per share, eur 0.33 0.31
Shareholders' equity per share, eur 2.26 3.14
Dividend per share (Series I), eur **) 0.10 0.15
Dividend per share (Series II), eur **) 0.10 0.15
Dividend per earnings (Series I), % neg. neg.
Dividend per earnings (Series II), % neg. neg.
Effective dividend yield (Series I), % 2.1 2.1
Effective dividend yield (Series II), % 3.5 3.1
Price per earnings (P/E) (Series I) neg. neg.
Price per earnings (P/E) (Series II) neg. neg.
Market capitalisation, Meur 81.9 133.1
Average number of shares during the financial period 25 665 208 25 665 208
Number of shares at the end on the financial period 25 665 208 25 665 208
*) Includes investments in tangible and intangible assets and shares in
associated companies and in available-for-sale financial assets (shares).
**) 2013: Proposal of the Board of Directors
CONSOLIDATED NET SALES AND PROFIT BY QUARTER
(EUR 1,000) Q1/ 2013 Q2/ 2013 Q3/ 2013 Q4/ 2013
NET SALES 10 987 11 585 10 614 11 707
OPERATING PROFIT/ LOSS 2 258 3 859 -24 022 1 273
PROFIT/ LOSS FOR THE PERIOD UNDER REVIEW 1 927 3 982 -24 668 581
(EUR 1,000) Q1/ 2012 Q2/ 2012 Q3/ 2012 Q4/ 2012
NET SALES 11 763 11 734 10 785 11 877
OPERATING PROFIT/ LOSS 3 385 2 566 3 757 -20 576
PROFIT/ LOSS FOR THE PERIOD UNDER REVIEW 2 449 1 852 2 897 -21 285
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY (EUR 1,000)
Change in Share Fair Invested Other Retaine Total
shareholders' capita value unrestricted reserv d
equity 1-12/ 2012 l reserv equity fund es earning
e s
SHAREHOLDERS' 6 416 101 48 498 24 49 401 104 440
EQUITY 1.1.
Comprehensive -2 -13 987 -13 989
income for the
period
Dividend -10 266 -10 266
distribution
Share of associated 382 382
company changes
TOTAL SHAREHOLDERS' 6 416 99 48 498 24 25 529 80 567
EQUITY 12/2012
Change in Share Fair Invested Other Retaine Total
shareholders' capita value unrestricted reserv d
equity 1-12/ 2013 l reserv equity fund es earning
e s
SHAREHOLDERS' 6 416 99 48 498 24 25 529 80 567
EQUITY 1.1.
Other change in -53 -53
shareholders'
equity
Comprehensive 14 -18 519 -18 506
income for the
period
Dividend -3 850 -3 850
distribution
Share of associated -68 -68
company changes
TOTAL SHAREHOLDERS' 6 416 113 48 498 24 3 040 58 091
EQUITY 12/2013
GROUP CONTINGENT LIABILITIES
(EUR 1,000) 12/2013 12/2012
Collateral pledged for own commitments
Mortgages on company assets 1 245 1 245
Mortgages on real estate 8 801 8 801
Pledged shares 49 680 65 730
Contingent liabilities on behalf of associated company
Guarantees 4 059 4 096
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
(EUR 1,000) 1-12/ 1-12/ Change % 2013 2012
Carrying amount at the beginning of the financial 11 862 13 481 -12
period
Increase 1 266 838 51
Depreciation for the financial period -1 670 -2 456 -32
Carrying amount at the end of the financial period 11 459 11 862 -3
RELATED PARTY TRANSACTIONS
Ilkka-Yhtymä Group's related parties include associated companies, members of
the Board of Directors, members of the Supervisory Board, the Managing Director
and the Group Executive Team.
THE FOLLOWING RELATED PARTY TRANSACTIONS WERE CARRIED OUT:
(EUR 1,000) 12/2013 12/2012
Sales of goods and services
To associated companies 261 288
To other related parties 860 823
Purchases of goods and services
From associated companies 464 463
From other related parties 29 5
Trade receivables
From associated companies 48 13
From other related parties 61 47
Accounts payable
To associated companies 16 4
Transactions with related parties are conducted at fair market prices.
EMPLOYEE BENEFITS TO MANAGEMENT
(EUR 1,000) 12/2013 12/2012
Salaries and other short-term employee benefits 989 936
Management comprises the Board of Directors, Supervisory Board, Managing
Director and Group Executive Team. The stated figures based on the cash method
do not differ significantly from those based on the accrual method.
FAIR VALUE HIERARCHY OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES MEASURED AT
FAIR VALUE
Fair value at end of period
(EUR 1,000) 12/2013 Level 1 Level 2 Level 3
ASSETS MEASURED AT FAIR VALUE
Financial assets at fair value through 1 259 1 259
profit or loss
Available-for-sale financial assets 9 249 9 249
TOTAL 10 507 1 259 9 249
LIABILITIES MEASURED AT FAIR VALUE
Interest rate swaps 1 701 1 701
TOTAL 1 701 1 701
Fair value at end of period
(EUR 1,000) 12/2012 Level 1 Level 2 Level 3
ASSETS MEASURED AT FAIR VALUE
Financial assets at fair value through 1 695 1 695
profit or loss
Available-for-sale financial assets 9 229 9 229
TOTAL 10 924 1 695 9 229
LIABILITIES MEASURED AT FAIR VALUE
Interest rate swaps 2 435 2 435
TOTAL 2 435 2 435
Available-for-sale assets also include EUR 1,419 thousand for unlisted shares
(EUR 1,495 thousand in 2012), which are measured at cost since no reliable fair
value was available for them.
At Level 1 of the hierarchy, fair value is based on quoted prices (unadjusted)
in active markets for identical assets or liabilities.
At Level 2, the instruments' fair value is based on inputs other than quoted
prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
At Level 3, the instruments' fair value is based on inputs for the asset or
liability that are not based on observable market data.
AUDITED CIRCULATION OF NEWSPAPERS FOR 2013
Ilkka 48 863
Pohjalainen 22 355
Jurvan Sanomat 2 043
Järviseutu 5 086
Komiat 6 355
Suupohjan Sanomat 3 907
Viiskunta 5 603
Vaasan Ikkuna (delivery) 50 314
Etelä-Pohjanmaa (delivery) 46 800
Drafting principles
This financial statements bulletin, issued by Ilkka-Yhtymä Group, was prepared
in accordance with the requirements of the IAS 34 Interim Financial Reporting
standard.
Since 1 January 2013, the Group has complied with the following new or updated
standards and interpretations:
- IAS 1 Presentation of Financial Statements (effective for annual periods
beginning on or after 1 July 2012). The key change is the requirement for the
separate presentation of items of other comprehensive income depending on
whether they will possibly be reclassified to profit or loss in the future if
specific conditions are met.
- IFRS 13 Fair Value Measurement (effective for annual periods beginning on or
after 1 January 2013). The standard will increase consistency and comparability
by providing an exact definition of fair value and by combining in the same
standard requirements for fair value measurement and the necessary disclosures.
The requirements do not extend the use of the fair value model, but they
provide guidance on how it should be applied when its use is allowed or when it
is required by another standard. The standard will increase the number of
disclosures.
- Amendment to IFRS 7 Financial Instruments: Disclosures (effective for annual
periods beginning on or after 1 January 2013). The amendment clarifies the
disclosure requirements for offsetting financial assets and liabilities on the
balance sheet, as well as for master netting arrangements or similar
agreements. The amendment will have no material impact on the consolidated
financial statements.
- Annual Improvements to IFRSs 2009-2011, May 2012 (effective for annual
periods beginning on or after 1 January 2013). The amendments apply to IFRS 1,
IAS 1, IAS 16, IAS 32 and IAS 34. The amendments will have no material impact
on the consolidated financial statements.
As regards other parts and issues, the same drafting principles have been
applied to the financial statements bulletin as used in the previous financial
statements on 31 December 2012. Moreover, the calculation formulas and
principles for indicators also remain unchanged.
The figures in the financial statements bulletin are unaudited.
PROPOSALS TO THE ANNUAL GENERAL MEETING
The Board of Directors proposes to the Annual General Meeting of 24 April 2014
that a per-share dividend of EUR 0.10 be paid for the financial year 2013,
representing a total dividend payment of EUR 2,566,520.80. Dividends will be
distributed to those who are listed on the record day, 29 April 2014, as
shareholders in the Ilkka-Yhtymä Oyj's list of shareholders, maintained at
Euroclear Finland Oy. Dividend payments are issued on 7 May 2014. On 31
December 2013, the parent company's distributable funds amounted to EUR
53,792,075.63.
AUTHORISATION TO DONATE
The Board of Directors proposes to the AGM that the Board of Directors be
authorised to decide upon a donation, totalling a maximum of EUR 50,000, to be
made towards charitable causes or similar, and that the Board of Directors be
authorised to decide upon the recipients, purposes of use, schedules and other
terms of these donations.
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.
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
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