Ilkka-Yhtymä Oyj's Interim Report for Q2/2013


Ilkka-Yhtymä Oyj      Interim Report 5 August 2013, at 3:00pm

ILKKA-YHTYMÄ OYJ’S INTERIM REPORT FOR Q2/2013

JANUARY-JUNE 2013
- Net sales: EUR 22.6 million (EUR 23.5 million), down 3.9%
- Operating profit: EUR 6.1 million (EUR 6.0 million), up 2.8%
- Operating profit excluding Alma Media Corporation and the other associated companies amounted to EUR 2.4 million (EUR 2.9 million), down 17.3%
- Operating profit totalled 27.1% of net sales, or 10.6% excluding Alma Media and other associated companies (12.3%)
- Pre-tax profits: EUR 6.4 million (EUR 4.5 million), up 42.8%
- Earnings per share: EUR 0.23 (EUR 0.17)

APRIL-JUNE 2013

- Net sales: EUR 11.6 million (Q2/2012: EUR 11.7 million), down 1.3%
- Operating profit: EUR 3.9 million (EUR 2.6 million), up 50.4%
- Operating profit excluding Alma Media Corporation and the other associated companies amounted to EUR 1.5 million (EUR 1.3 million), up 15.8%
- Operating profit totalled 33.3% of net sales, or 13.3% excluding Alma Media and other associated companies (11.3%)
- Pre-tax profits: EUR 4.3 million (EUR 1.9 million), up 134.1%
- Earnings per share: EUR 0.16 (EUR 0.07)


BUSINESS ENVIRONMENT

In its Economic Bulletin of 19 June 2013, the Ministry of Finance forecast GDP contraction of 0.4% for 2013.

In media monitored by TNS Ad Intelligence, advertising decreased by 8.4% in June and 10.5% in January–June compared to the corresponding period last year. In January–June, advertising in traditional newspapers fell by 17.3%.

NET SALES AND PROFIT PERFORMANCE

The Group’s consolidated net sales for January–June showed a 3.9% decline compared to the corresponding period of the previous year. Net sales came to EUR 22.6 million (EUR 23.5 million). External net sales from the publishing business fell by 7.0%. Advertising revenues fell by 13% and circulation revenues fell by 0.2%. The decrease in net sales from the publishing business was caused by a weaker advertising market. External net sales from the printing business increased by 17.3%. Circulation income accounted for 43% of consolidated net sales, while advertising income and printing income represented 42% and 16%, respectively.


For Q2, net sales decreased by 1.3% and totalled EUR 11.6 million (EUR 11.7 million). External net sales from the publishing business fell by 5.4%. Advertising revenues fell by 11.2%, and circulation revenues increased by 1.5%. External net sales from the printing business increased by 27.0%. Circulation income accounted for 42% of consolidated net sales in April–June, while advertising income and printing income represented 42% and 17%, respectively.

Other operating income in January–June totalled EUR 0.2 million (EUR 0.2 million) and in April–June EUR 0.1 million (EUR 0.1 million).

Operating expenses for January–June amounted to EUR 20.4 million (EUR 20.8 million), down by 2.2% year on year. For April–June, operating expenses amounted to EUR 10.1 million (EUR 10.5 million), down 3.5%. For January–June, expenses arising from materials and services increased by 3.7%. Personnel expenses decreased by 2.1%. 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 1.8%. Depreciation contracted by 31.3%.

The share of the associated companies’ result
for January–June was EUR 3.7 million (EUR 3.1 million). Consolidated operating profit amounted to EUR 6.1 million (EUR 6,0 million), up by 2.8 per cent year-on-year. The Group’s operating margin was 27.1 per cent (25.3%). Operating profit excluding Alma Media Corporation and the other associated companies amounted to EUR 2.4 million (EUR 2.9 million), representing 10.6% (12.3%) of net sales. Operating profit from publishing fell by EUR 0.6 million, and operating profit from printing grew by EUR 0.2 million.  

For April–June, the share of the associated companies’ result was EUR 2.3 million (EUR 1.2 million). Consolidated operating profit amounted to EUR 3.9 million (EUR 2.6 million). Operating profit increased 50.4% from the corresponding period. The Group’s operating margin was 33.3% (21.9%) in April–June. Operating profit excluding Alma Media Corporation and the other associated companies amounted to EUR 1.5 million (EUR 1.3 million), representing 13.3% (11.3%) of net sales. For the second quarter, operating profit from publishing remained roughly the same in euro terms as in the previous year. Operating profit from printing grew by EUR 0.2 million.

Net financial income for January–June amounted to EUR 0.3 million (net financial expenses in the corresponding period of the previous year EUR 1.4 million). Net gain/loss on shares held for trading was EUR -0.04 million (EUR -0.3 million). Interest expenses excluding the fair value change in derivatives hedging them totalled EUR 0.9 million (EUR 1.2 million). 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. In January–June 2013, the market value of these interest rate swaps grew by EUR 0.6 million (in January–June 2012, the market value fell by EUR 0.6 million).

Net financial income for April–June amounted to EUR 0.5 million (net financial expenses in the corresponding period of the previous year EUR 0.7 million). Net gain/loss on shares held for trading was EUR -0.03 million (EUR -0.4 million). Interest expenses excluding the fair value change in derivatives hedging them totalled EUR 0.4 million (EUR 0.5 million). In April–June 2013, the market value of interest rate swaps grew by EUR 0.4 million (in April–June 2012, the market value fell by EUR 0.3 million).

Pre-tax profits for January-June totalled EUR 6.4 million (EUR 4.5 million). Direct taxes amounted to EUR 0.5 million (EUR 0.2 million), and the Group's net profit for the period totalled EUR 5.9 million (EUR 4.3 million). The Group's net profit for the second quarter totalled EUR 4.0 million (EUR 1.9 million).

BALANCE SHEET AND FINANCING

The consolidated balance sheet total came to EUR 164.2 million (EUR 183.6 million), with EUR 82.5 million (EUR 98.6 million) of equity. On the reporting date of 30 June 2013, the balance sheet value of the holding in the associated company Alma Media Corporation was EUR 128.8 million and the market value of the shares was EUR 58.2 million. According to the management’s estimate, there is currently no need for an impairment write-down of this holding.


Interest-bearing liabilities totalled EUR 68.1 million (EUR 71.3 million). The equity ratio was 51.8 per cent (55.2%), and shareholders’ equity per share stood at EUR 3.21 (EUR 3.84). The decrease in financial assets for the first half of the year totalled EUR 0.4 million (EUR 8.9 million), with liquid assets at the end of the period totalling EUR 1.8 million (Q2/2012: EUR 2.0 million).

Cash flow from operations for the period came to EUR 6.1 million (EUR 6.4 million). This includes EUR 3.9 million (EUR -2.6 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 -0.3 million (EUR 0.1 million).

SHARE PERFORMANCE

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 Mid Cap. The Series I shares are listed on the Pre List.

In January–June, 30,469 series-I shares of Ilkka-Yhtymä Oyj were traded, accounting for 0.7 per cent of the total number of series-I shares. The total value of the shares traded was EUR 0.2 million. In total, 1,011,875 series-II shares were traded, corresponding to 4.7 per cent of the total number of series II shares. The total value of the shares traded was EUR 3.8 million. The lowest price at which series-I shares of Ilkka-Yhtymä Oyj were traded during the period under review was EUR 4.51, and the highest per-share price was EUR 7.95. The lowest price at which series-II shares were traded was EUR 2.76 and the highest EUR 5.19. The market value of the share capital at the closing rate for the reporting period was EUR 87.3 million.

RISKS AND RISK MANAGEMENT

In the current economic climate, major uncertainties are associated with the predictability of both net sales and operating profit.
Ilkka-Yhtymä’s most significant short-term risks are related to the development of media advertising, in particular, as well as circulation and printing volumes, which affect the industry in general. Other risks associated with the Group's own operations and its holding in associated company Alma Media Corporation are described in more detail in the Annual Report 2012.

The Group’s major financial risks include credit risk of the Group’s operative business, the risk associated with the price of shares held for trading, liquidity risk and the risk of changes in market interest rates applied to the loan portfolio. In order to hedge against interest rate risk, on 21 December 2010 the company transformed some of its floating-rate liabilities to a fixed rate, by means of interest rate swaps. Given that the Group does not apply hedge accounting, changes in the market value of the interest rate swap are recognised through profit and loss. Other financial risks are discussed in more detail in the 2012 Annual Report.


CORPORATE GOVERNANCE AND THE ANNUAL GENERAL MEETING

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.


OUTLOOK FOR 2013

In the current economic climate, forecasting net sales in the media sector and, in particular, media advertising spending involves major uncertainties. Due to consumer caution, VAT on circulation revenues and media competition, newspapers’ circulation revenues are predicted to decrease. Printing business volumes have declined permanently in Finland and the prospects for growth in the sector are weak.

Advertising in Finland was weaker than expected in the first half of the year.

The net sales of Ilkka-Yhtymä Group are estimated to decline slightly from the 2012 level.

Group operating profit from Ilkka-Yhtymä’s own operations, and operating profit as a percentage of net sales, excluding the share of Alma Media’s and other associated companies’ results, are expected to decline from the 2012 level. In addition, the year’s results will depend on interest-rate trends, the price performance of securities investments, and changes in the value of the associated companies.

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

DRAFTING PRINCIPLES

This interim report, issued by Ilkka-Yhtymä Group, was prepared in accordance with the requirements of the IAS 34 Interim Financial Reporting standard.

The interim report has been prepared according to the same principles as the 2012 financial statements. New or revised IFRS standards and IFRIC interpretations that become effective in 2013 have also been complied with, as specified in the 2012 financial statements. These changes have not affected the reported figures. The principles and formulae for the calculation of the indicators, presented on page 61 of the 2012 annual report, remain unchanged.

The figures in the interim report have been presented unaudited.


CONSOLIDATED INCOME STATEMENT



(EUR 1,000) 4-6/
2013
4-6/
2012
Change
%
1-6/
2013
1-6/
2012
Change
%
1-12/
2012
NET SALES 11 585 11 734 -1 22 572 23 496 -4 46 158
Change in inventories of finished and unfinished products 1 14 -94 6 24 -77  
Other operating income 101 100 1 194 209 -7 437
Materials and services -3 755 -3 522 7 -7 362 -7 098 4 -13 980
Employee benefits -4 403 -4 588 -4 -8 963 -9 158 -2 -17 824
Depreciation -511 -749 -32 -1 035 -1 507 -31 -2 918
Other operating costs -1 481 -1 660 -11 -3 012 -3 068 -2 -5 966
Share of associated companies’ profit *) 2 322 1 239 87 3 720 3 052 22 -16 774
OPERATING PROFIT/ LOSS 3 859 2 566 50 6 118 5 951 3 -10 868
Financial income and expenses 485 -711 168 323 -1 440 122 -2 550
PROFIT/ LOSS BEFORE TAX 4 344 1 856 134 6 440 4 511 43 -13 418
Income tax -361 -4 9178 -532 -210 153 -669
PROFIT/ LOSS FOR THE PERIOD UNDER REVIEW 3 982 1 852 115 5 909 4 300 37 -14 087
               
Earnings per share, undiluted (EUR)**) 0.16 0.07 115 0.23 0.17 37 -0.55
The undiluted share average (to the nearest thousand)**) 25 665 25 665   25 665 25 665   25 665


*) 1-12/2012: Includes the EUR 22 million non-recurring write-down on the holding in the associated company Alma Media Corporation.
**) There are no factor diluting the figure.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

(EUR 1,000) 4-6/
2013
4-6/
2012
Change
%
1-6/
2013
1-6/
2012
Change
%
1-12/
2012
PROFIT/ LOSS FOR THE PERIOD UNDER REVIEW 3 982 1 852 115 5 909 4 300 37 -14 087
OTHER COMPREHENSIVE INCOME:              
Items that may be reclassified subsequently to profit or loss:              
Available-for-sale assets   -1   2 -1 256 -3
Share of associated companies' other comprehensive income -239 -31 -679 -154 128 -221 100
Income tax related to components of other comprehensive income             1
Other comprehensive income, net of tax -239 -31 -661 -152 127 -221 98
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 3 744 1 820 106 5 756 4 427 30 -13 989
                 



CONSOLIDATED BALANCE SHEET
 

(EUR 1,000) 6/2013 6/2012 Change % 12/2012
         
ASSETS        
         
NON-CURRENT ASSETS        
Intangible rights 927 1 062 -13 1 008
Goodwill 314 314   314
Investment properties 208 258 -19 233
Property, plant and equipment 12 114 12 551 -3 11 862
Shares in associated companies 130 097 148 268 -12 128 796
Available-for-sale assets 10 668 10 762 -1 10 723
Other tangible assets 214 214   214
TOTAL NON-CURRENT ASSETS 154 541 173 429 -11 153 151
         
Current assets        
Inventories 593 661 -10 647
Trade and other receivables 4 692 4 770 -2 2 950
Income tax assets 900 1 148 -22 118
Financial assets at fair value
through profit or loss
1 583 1 542 3 1 695
Cash and cash equivalents 1 842 2 041 -10 2 263
TOTAL Current assets 9 610 10 162 -5 7 673
         
Total assets 164 150 183 590 -11 160 823
         
SHAREHOLDERS’ EQUITY AND LIABILITIES        
         
SHAREHOLDER’S EQUITY        
Share capital 6 416 6 416   6 416
Invested unrestricted equity fund and other reserves 48 623 48 622   48 621
Retained earnings 27 434 43 563 -37 25 529
SHAREHOLDER’S EQUITY 82 473 98 601 -16 80 567
         
NON-CURRENT LIABILITIES        
Deferred tax liability 148 233 -37 23
Non-current interest-bearing liabilities 66 359 70 567 -6 63 954
Non-current interest-free liabilities 102 115 -12 102
NON-CURRENT LIABILITIES 66 608 70 916 -6 64 079
         
CURRENT LIABILITIES        
Current interest-bearing liabilities 1 781 703 153 6 633
Accounts payable and other payables 12 737 12 682   9 390
Income tax liability 551 688 -20 155
CURRENT LIABILITIES 15 069 14 073 7 16 177
         
SHAREHOLDERS’ EQUITY AND LIABILITIES TOTAL 164 150 183 590 -11 160 823



CONSOLIDATED CASH FLOW STATEMENT
 

(EUR 1,000)  1-6/
2013
1-6/
2012
 1-12/
2012
CASH FLOW FROM OPERATIONS      
Profit/ loss for the period under review 5 909 4 300 -14 087
Adjustments -2 484 90 22 867
Change in working capital 1 783 -5 498 -6 732
CASH FLOW FROM OPERATIONS
BEFORE FINANCE AND TAXES
5 208 -1 108 2 048
Interest paid -620 -782 -2 235
Interest received 17 21 46
Dividends received 2 321 9 107 9 117
Other financial items -23 -29 -53
Direct taxes paid -793 -775 -947
CASH FLOW FROM OPERATIONS 6 110 6 435 7 976
       
CASH FLOW FROM INVESTMENTS      
Investments in tangible and
intangible assets, net
-888 -400 -1 083
Other investments, net 121 -49 -16
Dividends received from investments 506 511 529
CASH FLOW FROM INVESTMENTS -261 62 -570
       
CASH FLOW BEFORE FINANCING ITEMS 5 849 6 497 7 406
       
CASH FLOW FROM FINANCING      
Change in current loans -2 452 -3 238 -3 925
Change in non-current loans   -1 964 -1 964
Dividends paid and other profit distribution -3 817 -10 179 -10 180
CASH FLOW FROM FINANCING -6 270 -15 382 -16 069
       
INCREASE (+) OR DECREASE (-)IN FINANCIAL ASSETS -421 -8 885 -8 663
       
Liquid assets at the beginning of the  financial period 2 263 10 926 10 926
Liquid assets at the end of the financial period 1 842 2 041 2 263



KEY FIGURES
 

  6/2013 6/2012 12/2012
Earnings/share (EUR) 0.23 0.17 -0.55
Shareholders' equity/share (EUR) 3.21 3.84 3.14
Average number of personnel 322 335 336
Investments (EUR 1,000) *) 1 197 531 1 311
Interest-bearing debt (EUR 1,000) 68 139 71 270 70 587
Equity ratio, % 51.8 55.2 50.7
Average number of shares during the financial period 25 665 208 25 665 208 25 665 208
Number of shares at the end on the financial period 25 665 208 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.

Taxes included in the income statement are taxes corresponding to the profit for the period under review.


STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY (EUR 1,000)
 

Change in shareholders’ equity 1-6/ 2012 Share
capital
Fair
value
reserve
Invested unrestricted  equity fund Other
reserves
Retained
earnings
Total
SHAREHOLDERS’ EQUITY 1.1. 6 416 101 48 498 24 49 401 104 440
Comprehensive income for the period   -1     4 428 4 427
Dividend distribution         -10 266 -10 266
TOTAL SHAREHOLDERS’ EQUITY 6/ 2012 6 416 100 48 498 24 43 563 98 601


 

Change in shareholders’ equity 1-6/ 2013 Share
capital
Fair
value
reserve
Invested unrestricted  equity fund Other
reserves
Retained
earnings
Total
SHAREHOLDERS’ EQUITY 1.1. 6 416 99 48 498 24 25 529 80 567
Comprehensive income for the period   2     5 755 5 756
Dividend distribution         -3 850 -3 850
TOTAL SHAREHOLDERS’ EQUITY 6/ 2013 6 416 101 48 498 24 27 434 82 473



GROUP CONTINGENT LIABILITIES
 

(EUR 1,000) 6/2013 6/2012 12/2012
Collateral pledged for own commitments      
Mortgages on company assets 1 245 1 245 1 245
Mortgages on real estate 8 801 8 801 8 801
Pledged shares 37 416 68 218 65 730
       
Contingent liabilities on behalf of associated company      
Guarantees 4 059 4 182 4 096



SEGMENT INFORMATION

NET SALES BY SEGMENT
 

(EUR 1,000) 4-6/
2013
4-6/
2012
Change % 1-6/
2013
1-6/
2012
Change % 1-12/
2012
Publishing              
External 9 664 10 221 -5 19 052 20 495 -7 40 414
Inter-segments 47 34 40 84 64 30 113
Publishing total 9 711 10 255 -5 19 136 20 559 -7 40 528
               
Printing              
External 1 921 1 512 27 3 520 3 002 17 5 743
Inter-segments 1 720 1 967 -13 3 494 4 001 -13 7 967
Printing total 3 641 3 479 5 7 014 7 003   13 710
               
Non-allocated              
Inter-segments 567 534 6 1 134 1 068 6 2 139
Non-allocated total 567 534 6 1 134 1 068 6 2 139
               
Elimination -2 334 -2 535 -8 -4 712 -5 133 -8 -10 219
Group net sales total 11 585 11 734 -1 22 572 23 496 -4 46 158
OPERATING PROFIT/ LOSS BY SEGMENT 
(EUR 1,000) 4-6/
2013
4-6/
2012
Change % 1-6/
2013
1-6/
2012
Change % 1-12/
2012
Publishing 1 215 1 207 1 1 993 2 563 -22 5 046
Printing 529 312 69 846 654 29 1 379
Associated companies 2 322 1 239 87 3 720 3 052 22 -16 774
Non-allocated -207 -192 -8 -440 -318 -38 -519
Group operating profit/ loss total 3 859 2 566 50 6 118 5 951 3 -10 868



ASSETS BY SEGMENT
 

(EUR 1,000) 6/2013 6/2012 Change % 12/2012
Publishing 13 781 14 498 -5 13 477
Printing 9 723 10 857 -10 9 831
Non-allocated 140 646 158 236 -11 137 516
Group assets total 164 150 183 590 -11 160 823



CHANGES IN PROPERTY, PLANT AND EQUIPMENT
 

(1000 eur) 1-6/
2013
1-6/
2012
Change % 1-12/
2012
Carrying amount at the beginning of the financial period 11 862 13 481 -12 13 481
Increase 1 078 339 218 838
Depreciation for the financial period -826 -1 269 -35 -2 456
Carrying amount at the end of the financial period 12 114 12 551 -3 11 862




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) 6/2013 6/2012 12/2012
       
Sales of goods and services      
To associated companies 129 171 288
To other related parties 450 406 823
       
Purchases of goods and services      
From associated companies 264 279 463
From other related parties 2 2 5
       
Trade receivables      
From associated companies 24 22 13
From other related parties 99 48 47
       
Accounts payable      
To associated companies 14 45 4


Transactions with related parties are conducted at fair market prices.


EMPLOYEE BENEFITS TO MANAGEMENT
 

(EUR 1,000) 6/2013 6/2012 12/2012
Salaries and other short-term employee benefits 516 490 936


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) 6/2013 Level 1 Level 2 Level 3
ASSETS MEASURED AT FAIR VALUE        
Financial assets at fair value through profit or loss 1 583 1 583    
Available-for-sale financial assets 9 248   9 248  
TOTAL 10 832 1 583 9 248  
         
LIABILITIES MEASURED AT FAIR VALUE        
Interest rate swaps 1 827   1 827  
TOTAL 1 827   1 827  


Available-for-sale assets also include EUR 1,419 thousand for unlisted shares, 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.



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

DISTRIBUTION
NASDAQ OMX Helsinki
The main media
www.ilkka-yhtyma.fi

 

 

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