Ilkka-Yhtymä Oyj Interim Report 3 November 2014, at 3:00pm
ILKKA-YHTYMÄ OYJ’S INTERIM REPORT 1 JAN.-30 SEP. 2014
JANUARY-SEPTEMBER 2014
- Net sales: EUR 30.8 million (EUR 33.2 million)
- Total expenses decreased by 4.6%
- Operating profit from the Group's own operations, excluding Alma Media Corporation and the other associated companies, amounted to EUR 3.2 million (EUR 4.2 million)
- Operating margin of the Group's own operations, excluding Alma Media Corporation and the other associated companies, was 10.3 (12.5).
- Reported operating profit was EUR 6.3 million (operating loss EUR 17.9 million). The operating loss in the comparative period included the EUR 27 million write-down on the holding in the associated company Alma Media Corporation.
- Reported operating margin 20.6 (-54.0)
- Reported earnings per share EUR 0.26 (EUR -0.73)
- Eguity ratio 46.6% remained at a good level
- Net gearing 81.1% (109.6%)
JULY-SEPTEMBER 2014
- Net sales: EUR 9.9 million (EUR 10.6 million)
- Operating profit from the Group's own operations, excluding Alma Media Corporation and the other associated companies, amounted to EUR 1.3 million (EUR 1.8 million)
- Operating margin of the Group's own operations, excluding Alma Media Corporation and the other associated companies, was 13.0 (16.6).
- Reported operating profit was EUR 2.6 million (operating loss EUR 24.0 million). The operating loss in the comparative period included the EUR 27 million write-down on the holding in the associated company Alma Media Corporation.
- Reported operating margin 26.4 (-226.3)
- Reported earnings per share EUR 0.14 (EUR -0.96)
- Financial income and expenses EUR 1.4 million (EUR -0.3 million)
NET SALES AND PROFIT PERFORMANCE
The Group’s consolidated net sales for January–September showed a 7.1% decline. Net sales came to EUR 30.8 million (EUR 33.2 million). External net sales from the publishing business fell by 5.1%. Advertising revenues fell by 9.5% and circulation revenues by 0.9%. The decrease in net sales from the publishing business was mainly caused by a weaker advertising market. External net sales from the printing business declined by 18.5% due to tough competition and the weaker market. Circulation income accounted for 47% of consolidated net sales, while advertising income and printing income represented 40% and 13%, respectively.
For Q3, net sales decreased by 6.6% and totalled EUR 9.9 million (EUR 10.6 million). External net sales from the publishing business fell by 5.7%. Advertising revenues fell by 11.8% and circulation revenues by 0.4%. External net sales from the printing business decreased by 12.1%. Circulation income accounted for 49% of consolidated net sales in July–September, while advertising income and printing income represented 38% and 12%, respectively.
Other operating income in January–September totalled EUR 0.3 million (EUR 0.3 million) and in July–September EUR 0.1 million (EUR 0.1 million).
Operating expenses for January–September amounted to EUR 28.0 million (EUR 29.3 million), down by 4.6% year on year. For July–September, operating expenses amounted to EUR 8.7 million (EUR 9.0 million), down 2.6%. For January–September, expenses arising from materials and services decreased by 7.6%. Personnel expenses remained at the previous year’s level. Other operating costs decreased by 8.8%. Depreciation contracted by 8.3%.
For January–September, the share of the associated companies’ result was EUR 3.2 million (in January–September 2013, EUR -22.1 million following the EUR 27 million write-down on the holding in the associated company Alma Media Corporation). Operating profit from the Group's own operations, excluding Alma Media Corporation and the other associated companies, amounted to EUR 3.2 million (EUR 4.2 million), representing 10.3% (12.5%) of net sales. Reported operating profit was EUR 6.3 million (operating loss EUR 17.9 million in January–September 2013). Reported operating margin was 20.6 (-54.0). Operating profit from publishing fell by EUR 1.0 million, and operating profit from printing fell by EUR 0.1 million.
For July–September, the share of the associated companies’ result was EUR 1.3 million (in July–September 2013, EUR -25.8 million following the EUR 27 million write-down). Operating profit from the Group's own operations, excluding Alma Media Corporation and the other associated companies, amounted to EUR 1.3 million (EUR 1.8 million), representing 13.0% (16.6%) of net sales. Reported operating profit was EUR 2.6 million (operating loss EUR 24.0 million in July–September 2013). Reported operating margin was 26.4 (-226.3). For the third quarter, operating profit from publishing fell by EUR 0.4 million, and operating profit from printing grew by EUR 0.04 million.
Net financial income for January–September amounted to EUR 1.2 million (EUR 0.04 million). Net gain/loss on shares held for trading was EUR -0.1 million (EUR 0.1 million). Interest expenses excluding the fair value change in derivatives hedging them totalled EUR 1.3 million (EUR 1.3 million). In order to hedge against interest rate risk, the company has 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–September 2014, the market value of these interest rate swaps fell by EUR 0.1 million (in January–September 2013, the market value grew by EUR 0.7 million). Financial income for the period includes a capital gain of EUR 2 million from the sale of Anvia Oyj’s shares.
Net financial income for July–September amounted to EUR 1.4 million (net financial expenses in the corresponding period of the previous year EUR 0.3 million). Net gain/loss on shares held for trading was EUR -0.1 million (EUR 0.1 million). Interest expenses excluding the fair value change in derivatives hedging them totalled EUR 0.4 million (EUR 0.4 million). In July–September 2014, the market value of interest rate swaps fell by EUR 0.1 million (in July–September 2013, the market value grew by EUR 0.05 million). Financial income for the period includes a capital gain of EUR 2 million from the sale of Anvia Oyj’s shares.
Pre-tax profits for January-September totalled EUR 7.6 million (pre-tax loss EUR 17.9 million for January-September 2013). Direct taxes amounted to EUR 0.8 million (EUR 0.9 million), and consolidated profit for the period totalled EUR 6.8 million (loss EUR 18.8 million). The consolidated profit for the third quarter totalled EUR 3.5 million (loss EUR 24.7 million).
BALANCE SHEET AND FINANCING
The consolidated balance sheet total came to EUR 138.1 million (EUR 138.4 million), with EUR 62.3 million (EUR 57.9 million) of equity. On the reporting date of 30 September 2014, the balance sheet value of the holding in the associated company Alma Media Corporation was EUR 103.4 million and the market value of the shares was EUR 69.5 million. According to the management’s estimate, write-down in this holding is unnecessary.
Interest-bearing liabilities totalled EUR 64.0 million (EUR 68.1 million). The equity ratio was 46.6 per cent (43.2%), and shareholders’ equity per share was EUR 2.43 (EUR 2.25). The increase in financial assets for the period totalled EUR 10.5 million (EUR 1.2 million), with liquid assets at the end of the period totalling EUR 12.5 million (EUR 3.4 million). At the end of the period, Group's net gearing was 81.1 per cent (109.6%).
For January–September, cash flow from operations came to EUR 3.5 million (EUR 8.1 million). Cash flow from operations for January–September 2013 includes EUR 5.9 million from the Group’s own operations as well as EUR 2.2 million of dividend income from Alma Media Corporation. Cash flow from investments for January–September amounted to EUR 11.9 million (EUR -0.7 million), including repayment of capital from Alma Media Corporation in the amount of EUR 2.2 million and EUR 9.5 million proceeds from the sale of Anvia Oyj’s shares.
ILKKA-YHTYMÄ SOLD ITS ANVIA OYJ SHARES TO ELISA CORPORATION
Ilkka-Yhtymä Oyj and its subsidiaries I-Mediat Oy and I-print Oy sold all of their Anvia Oyj shares to Elisa Corporation on 28 August 2014. The shares were sold for EUR 9.5 million, and Ilkka-Yhtymä Group recorded a capital gain of approximately EUR 2 million for the sale.
NEWSPAPERS TO COLLABORATE MORE CLOSELY THROUGH LÄNNEN MEDIA
On 23 June 2014, Ilkka-Yhtymä Oyj's subsidiary I-Mediat Oy and five other Finnish newspaper publishers signed a co-operation agreement to establish Lännen Media Oy, a company that will produce content for 12 provincial newspapers in western and northern Finland.
By the end of 2014, the Lännen Media newspapers will set up a nationwide editorial staff of 40 people to produce content for printed newspapers as well as digital, online and mobile channels.
The shared editorial staff will produce nationwide Finnish and international news content, timely articles to shed light on the facts behind the news, weekend supplement material, daily theme pages and nationwide online news.
The founding newspapers behind Lännen Media include Ilkka-Yhtymä's newspapers Ilkka and Pohjalainen, Alma Media's newspapers Aamulehti, Satakunnan Kansa, Lapin Kansa, Kainuun Sanomat and Pohjolan Sanomat as well as Kaleva, Turun Sanomat, Keskipohjanmaa, Hämeen Sanomat and Forssan Lehti, which is part of the same company.
The Lännen Media newspapers reach almost two million Finns (1,980,000). The combined circulation of the printed newspapers is 516,375 copies (FABC Audit 2013) and they are read by 1.28 million readers.
ILKKA-YHTYMÄ'S NEWSPAPERS TO BE PARTLY DISTRIBUTED BY HSS MEDIA
Ilkka-Yhtymä Oyj's subsidiary I-Mediat Oy has started distribution co-operation with HSS Media in the Swedish-speaking coastal regions of Ostrobothnia.
As from 1 June 2014, I-Mediat Oy's provincial newspapers Pohjalainen and Ilkka gradually started using the distribution services of HSS Media in the Swedish-speaking municipalities of Ostrobothnia, with the exception of Vaasa and Mustasaari. In Vaasa and parts of Mustasaari, the newspapers will still be distributed by Itella in the early hours.
PERSONNEL
The Group had an average of 317 (325) employees during the period.
On 6 May 2014, Ilkka-Yhtymä announced that it would start adaptation measures in order to safeguard profitability. As part of these measures, the company launched negotiations concerning all personnel in line with the Act on Co-operation within Undertakings.
As the outcome of these negotiations, personnel savings will largely be achieved through temporary layoffs of all employees. The savings correspond to layoffs of around one week during the second half of 2014. As a result of voluntary retirement and the part-time employment and redundancies agreed upon in the codetermination negotiations, Ilkka-Yhtymä will permanently reduce its full-time employees by about 10. These personnel savings, coupled with other adaptation measures, will yield the targeted cost-savings of EUR 0.6 million in 2014.
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 Small Cap. The Series I shares are listed on the Pre List.
In January–September, 65,837 series-I shares of Ilkka-Yhtymä Oyj were traded, accounting for 1.5 per cent of the total number of series-I shares. The total value of the shares exchanged was EUR 0.2 million. In total, 1,939,416 series-II shares were traded, corresponding to 9.1 per cent of the total number of series II shares. The total value of the shares traded was EUR 4.8 million. The lowest price at which series-I shares of Ilkka-Yhtymä Oyj were traded during the period under review was EUR 2.90, and the highest per-share price was EUR 4.98. The lowest price at which series-II shares were traded was EUR 2.11 and the highest EUR 3.05. The market value of the share capital at the closing rate for the reporting period was EUR 58.4 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 2013.
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, the company has 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 2013 Annual Report.
CORPORATE GOVERNANCE AND THE ANNUAL GENERAL MEETING
On 24 April 2014, 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 0.10 be paid for the year 2013.
The number of members on the Supervisory Board for 2014 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 2018: Kari Aukia, Sami Eerola, Jari Eklund, Johanna Kankaanpää, Yrjö Kopra, Juha Mikkilä and Sami Talso.
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.
At its meeting on 5 May 2014, the Supervisory Board re-elected Esa Lager and Riitta Viitala to the Board of Directors of Ilkka-Yhtymä Oyj when their terms of service had come to an end. Seppo Paatelainen announced that he would step down from the Board. Markku Hautanen, M.Sc. (Econ.), CEO of the Skaala Group, was elected as his replacement for the remainder of the term (ending in 2015). 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 elected Timo Aukia as its chairman and Esa Lager as its vice-chairman. The Board of Directors of Ilkka-Yhtymä Oyj now has the following membership: chairman Timo Aukia, vice-chairman Esa Lager, members Markku Hautanen, Sari Mutka, Tapio Savola, and Riitta Viitala.
OUTLOOK FOR 2014
In the current economic climate, forecasting net sales in the media sector and, in particular, media advertising spending involves major uncertainties. Owing to consumer caution and competition between media, advertising spending and newspapers’ circulation income are expected to fall short from the previous year’s level. 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 decline from 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
DRAFTING PRINCIPLES
Ilkka-Yhtymä Group's interim report 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 2013 financial statements. New or revised IFRS standards and IFRIC interpretations that become effective in 2014 have also been complied with, as specified in the 2013 financial statements. These changes have not affected the reported figures. The principles and formulae for the calculation of the indicators, presented on page 63 of the 2013 annual report, remain unchanged.
All the figures in the interim report are rounded, so the sum of separate figures may differ from that presented in the report.
The figures in the interim report have been presented unaudited.
CONSOLIDATED INCOME STATEMENT
| (EUR 1,000) |
7-9/ 2014 |
7-9/ 2013 |
Change % |
1-9/ 2014 |
1-9/ 2013 |
Change % |
1-12/ 2013 |
| NET SALES | 9 918 | 10 614 | -7 | 30 838 | 33 186 | -7 | 44 893 |
| Change in inventories of finished and unfinished products | 3 | 2 | 26 | 2 | 8 | -76 | 6 |
| Other operating income | 83 | 102 | -18 | 300 | 296 | 2 | 392 |
| Materials and services | -3 296 | -3 460 | -5 | -9 996 | -10 823 | -8 | -14 484 |
| Employee benefits | -3 758 | -3 782 | -1 | -12 722 | -12 746 | -17 020 | |
| Depreciation | -461 | -525 | -12 | -1 430 | -1 559 | -8 | -2 078 |
| Other operating costs | -1 204 | -1 188 | 1 | -3 829 | -4 200 | -9 | -5 711 |
| Share of associated companies’ profit *) | 1 337 | -25 784 | 105 | 3 173 | -22 064 | 114 | -22 630 |
| OPERATING PROFIT/ LOSS | 2 622 | -24 022 | 111 | 6 337 | -17 904 | 135 | -16 631 |
| Financial income and expenses | 1 416 | -284 | 598 | 1 219 | 38 | 3082 | -347 |
| PROFIT/ LOSS BEFORE TAX | 4 038 | -24 306 | 117 | 7 556 | -17 866 | 142 | -16 978 |
| Income tax | -526 | -362 | 45 | -766 | -893 | -14 | -1 199 |
| PROFIT/ LOSS FOR THE PERIOD UNDER REVIEW | 3 512 | -24 668 | 114 | 6 790 | -18 759 | 136 | -18 178 |
| Earnings per share, undiluted (EUR)**) | 0.14 | -0.96 | 114 | 0.26 | -0.73 | 136 | -0.71 |
| The undiluted share average (to the nearest thousand)**) | 25 665 | 25 665 | 25 665 | 25 665 | 25 665 |
*) 2013: Includes the EUR 27 million non-recurring write-down on the holding in the associated company Alma Media Corporation (Q3/2013).
**) There are no factor diluting the figure.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| (EUR 1,000) |
7-9/ 2014 |
7-9/ 2013 |
Change % |
1-9/ 2014 |
1-9/ 2013 |
Change % |
1-12/ 2013 |
|
| PROFIT/ LOSS FOR THE PERIOD UNDER REVIEW | 3 512 | -24 668 | 114 | 6 790 | -18 759 | 136 | -18 178 | |
| OTHER COMPREHENSIVE INCOME: | ||||||||
| Items that may be reclassified subsequently to profit or loss: | ||||||||
| Available-for-sale assets | ||||||||
| Measured at fair value | -14 | -26 | 2 | -1295 | 2 | |||
| Transferred to the income statement | 124 | 126 | ||||||
| Share of associated companies' other comprehensive income | 87 | 48 | 83 | -130 | -106 | -22 | -342 | |
| Income tax related to components of other comprehensive income | -22 | -20 | -1 | -3679 | 11 | |||
| Other comprehensive income, net of tax | 176 | 48 | 268 | -50 | -105 | 53 | -328 | |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 3 688 | -24 620 | 115 | 6 740 | -18 864 | 136 | -18 506 | |
SEGMENT INFORMATION
NET SALES BY SEGMENT
| (EUR 1,000) |
7-9/ 2014 |
7-9/ 2013 |
Change % |
1-9/ 2014 |
1-9/ 2013 |
Change % |
1-12/ 2013 |
| Publishing | |||||||
| External | 8 708 | 9 237 | -6 | 26 848 | 28 289 | -5 | 38 098 |
| Inter-segments | 17 | 31 | -45 | 63 | 115 | -45 | 159 |
| Publishing total | 8 725 | 9 268 | -6 | 26 912 | 28 404 | -5 | 38 257 |
| Printing | |||||||
| External | 1 210 | 1 377 | -12 | 3 990 | 4 897 | -19 | 6 795 |
| Inter-segments | 1 675 | 1 701 | -2 | 5 064 | 5 195 | -3 | 6 968 |
| Printing total | 2 885 | 3 078 | -6 | 9 053 | 10 091 | -10 | 13 763 |
| Non-allocated | |||||||
| Inter-segments | 560 | 567 | -1 | 1 680 | 1 701 | -1 | 2 269 |
| Non-allocated total | 560 | 567 | -1 | 1 680 | 1 701 | -1 | 2 269 |
| Elimination | -2 252 | -2 299 | -2 | -6 807 | -7 010 | -3 | -9 395 |
| Group net sales total | 9 918 | 10 614 | -7 | 30 838 | 33 186 | -7 | 44 893 |
OPERATING PROFIT/ LOSS BY SEGMENT
| (EUR 1,000) |
7-9/ 2014 |
7-9/ 2013 |
Change % |
1-9/ 2014 |
1-9/ 2013 |
Change % |
1-12/ 2013 |
| Publishing | 830 | 1 263 | -34 | 2 250 | 3 256 | -31 | 4 594 |
| Printing | 452 | 408 | 11 | 1 192 | 1 254 | -5 | 1 827 |
| Associated companies | 1 337 | -25 784 | 105 | 3 173 | -22 064 | 114 | -22 630 |
| Non-allocated | 3 | 92 | -97 | -278 | -349 | 20 | -422 |
| Group operating profit/ loss total | 2 622 | -24 022 | 111 | 6 337 | -17 904 | 135 | -16 631 |
ASSETS BY SEGMENT
| (EUR 1,000) | 9/2014 | 9/2013 |
Change % |
12/2013 |
| Publishing | 15 157 | 14 000 | 8 | 9 252 |
| Printing | 9 783 | 9 612 | 2 | 8 788 |
| Non-allocated | 113 202 | 114 793 | -1 | 115 762 |
| Group assets total | 138 143 | 138 405 | 133 802 |
CONSOLIDATED BALANCE SHEET
| (EUR 1,000) | 9/2014 | 9/2013 |
Change % |
12/2013 |
| ASSETS | ||||
| NON-CURRENT ASSETS | ||||
| Intangible rights | 606 | 857 | -29 | 789 |
| Goodwill | 314 | 314 | 314 | |
| Investment properties | 156 | 195 | -20 | 182 |
| Property, plant and equipment | 10 521 | 11 812 | -11 | 11 459 |
| Shares in associated companies | 104 207 | 104 360 | 103 492 | |
| Available-for-sale assets | 2 952 | 10 668 | -72 | 10 668 |
| Non-current trade and other receivables | 567 | |||
| Other tangible assets | 214 | 214 | 214 | |
| TOTAL NON-CURRENT ASSETS | 119 537 | 128 421 | -7 | 127 118 |
| Current assets | ||||
| Inventories | 547 | 549 | 483 | |
| Trade and other receivables | 4 059 | 3 698 | 10 | 2 866 |
| Income tax assets | 442 | 997 | -56 | 96 |
|
Financial assets at fair value through profit or loss |
1 092 | 1 306 | -16 | 1 259 |
| Cash and cash equivalents | 12 466 | 3 434 | 263 | 1 980 |
| TOTAL Current assets | 18 605 | 9 984 | 86 | 6 684 |
| Total assets | 138 143 | 138 405 | 133 802 | |
| SHAREHOLDERS’ EQUITY AND LIABILITIES | ||||
| SHAREHOLDER’S EQUITY | ||||
| Share capital | 6 416 | 6 416 | 6 416 | |
| Invested unrestricted equity fund and other reserves | 48 715 | 48 623 | 48 635 | |
| Retained earnings | 7 133 | 2 814 | 153 | 3 040 |
| SHAREHOLDER’S EQUITY | 62 265 | 57 853 | 8 | 58 091 |
| NON-CURRENT LIABILITIES | ||||
| Deferred tax liability | 145 | 152 | -5 | 216 |
| Non-current interest-bearing liabilities | 61 654 | 66 365 | -7 | 60 432 |
| Non-current interest-free liabilities | 88 | 102 | -13 | 88 |
| NON-CURRENT LIABILITIES | 61 887 | 66 620 | -7 | 60 736 |
| CURRENT LIABILITIES | ||||
| Current interest-bearing liabilities | 2 369 | 1 773 | 34 | 5 947 |
| Accounts payable and other payables | 11 032 | 11 219 | -2 | 8 768 |
| Income tax liability | 590 | 941 | -37 | 260 |
| CURRENT LIABILITIES | 13 991 | 13 932 | 14 975 | |
| SHAREHOLDERS’ EQUITY AND LIABILITIES TOTAL | 138 143 | 138 405 | 133 802 |
CONSOLIDATED CASH FLOW STATEMENT
| (EUR 1,000) |
1-9/ 2014 |
1-9/ 2013 |
1-12/ 2013 |
| CASH FLOW FROM OPERATIONS | |||
| Profit/ loss for the period under review | 6 790 | -18 759 | -18 178 |
| Adjustments | -2 244 | 24 457 | 26 229 |
| Change in working capital | 548 | 1 427 | 408 |
|
CASH FLOW FROM OPERATIONS BEFORE FINANCE AND TAXES |
5 094 | 7 125 | 8 459 |
| Interest paid | -807 | -846 | -1 749 |
| Interest received | 22 | 25 | 35 |
| Dividends received | 55 | 2 337 | 2 344 |
| Other financial items | -33 | 344 | 333 |
| Direct taxes paid | -874 | -858 | -920 |
| CASH FLOW FROM OPERATIONS | 3 456 | 8 127 | 8 502 |
| CASH FLOW FROM INVESTMENTS | |||
|
Investments in tangible and intangible assets, net |
-254 | -1 313 | -1 398 |
| Capital repayment received | 2 249 | ||
| Other investments | -29 | -18 | -18 |
| Proceeds from sale of other investments | 10 056 | 138 | 138 |
| Granted loans | -567 | ||
| Dividends received from investments | 484 | 507 | 528 |
| CASH FLOW FROM INVESTMENTS | 11 938 | -686 | -750 |
| CASH FLOW BEFORE FINANCING ITEMS | 15 395 | 7 441 | 7 753 |
| CASH FLOW FROM FINANCING | |||
| Change in current loans | -2 361 | -2 452 | -4 217 |
| Dividends paid and other profit distribution | -2 548 | -3 818 | -3 818 |
| CASH FLOW FROM FINANCING | -4 909 | -6 270 | -8 035 |
| INCREASE (+) OR DECREASE (-)IN FINANCIAL ASSETS | 10 486 | 1 171 | -282 |
| Liquid assets at the beginning of the financial period | 1 980 | 2 263 | 2 263 |
| Liquid assets at the end of the financial period | 12 466 | 3 434 | 1 980 |
KEY FIGURES
| 9/2014 | 9/2013 | 12/2013 | |
| Earnings/share (EUR) | 0.26 | -0.73 | -0.71 |
| Shareholders' equity/share (EUR) | 2.43 | 2.25 | 2.26 |
| Average number of personnel | 317 | 325 | 321 |
| Investments (EUR 1,000) *) | 315 | 1 338 | 1 423 |
| Interest-bearing debt (EUR 1,000) | 64 023 | 68 138 | 66 379 |
| Equity ratio, % | 46.6 | 43.2 | 44.2 |
| Net gearing, % | 81.1 | 109.6 | 108.7 |
| 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 1-9/ 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 | -18 865 | -18 864 | |||
| Dividend distribution | -3 850 | -3 850 | ||||
| TOTAL SHAREHOLDERS’ EQUITY 9/ 2013 | 6 416 | 101 | 48 498 | 24 | 2 814 | 57 853 |
| Change in shareholders’ equity 1-9/ 2014 |
Share capital |
Fair value reserve |
Invested unrestricted equity fund |
Other reserves |
Retained earnings |
Total |
| SHAREHOLDERS’ EQUITY 1.1. | 6 416 | 113 | 48 498 | 24 | 3 040 | 58 091 |
| Comprehensive income for the period | 80 | 6 660 | 6 740 | |||
| Dividend distribution | -2 567 | -2 567 | ||||
| SHAREHOLDERS’ EQUITY 9/ 2014 | 6 416 | 193 | 48 498 | 24 | 7 133 | 62 265 |
GROUP CONTINGENT LIABILITIES
| (EUR 1,000) | 9/2014 | 9/2013 | 12/2013 |
| 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 | 56 733 | 45 795 | 49 680 |
| Contingent liabilities on behalf of associated company | |||
| Guarantees | 4 010 | 4 059 | 4 059 |
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
| (EUR 1,000) |
1-9/ 2014 |
1-9/ 2013 |
Change % |
1-12/ 2013 |
| Carrying amount at the beginning of the financial period | 11 459 | 11 862 | -3 | 11 862 |
| Increase | 224 | 1 199 | -81 | 1 266 |
| Decrease | -4 | |||
| Depreciation for the financial period | -1 157 | -1 248 | -7 | -1 670 |
| Carrying amount at the end of the financial period | 10 521 | 11 812 | -11 | 11 459 |
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) | 9/2014 | 9/2013 | 12/2013 |
| Sales of goods and services | |||
| To associated companies | 194 | 189 | 261 |
| To other related parties | 625 | 669 | 860 |
| Purchases of goods and services | |||
| From associated companies | 328 | 379 | 464 |
| From other related parties | 4 | 29 | 29 |
| Non-current loan receivables from associated companies | 567 | ||
| Trade and other receivables | |||
| From associated companies | 31 | 22 | 48 |
| From other related parties | 31 | 73 | 61 |
| Accounts payable | |||
| To associated companies | 57 | 22 | 16 |
Transactions with related parties are conducted at fair market prices.
EMPLOYEE BENEFITS TO MANAGEMENT
| (EUR 1,000) | 9/2014 | 9/2013 | 12/2013 |
| Salaries and other short-term employee benefits | 782 | 748 | 989 |
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) | 9/2014 | Level 1 | Level 2 | Level 3 |
| ASSETS MEASURED AT FAIR VALUE | ||||
| Financial assets at fair value through profit or loss | 1 092 | 1 092 | ||
| Available-for-sale financial assets | 1 532 | 1 532 | ||
| TOTAL | 2 623 | 1 092 | 1 532 | |
| LIABILITIES MEASURED AT FAIR VALUE | ||||
| Interest rate swaps | 1 834 | 1 834 | ||
| TOTAL | 1 834 | 1 834 | ||
| Fair value at end of period | ||||
| (EUR 1,000) | 9/2013 | Level 1 | Level 2 | Level 3 |
| ASSETS MEASURED AT FAIR VALUE | ||||
| Financial assets at fair value through profit or loss | 1 306 | 1 306 | ||
| Available-for-sale financial assets | 9 248 | 9 248 | ||
| TOTAL | 10 554 | 1 306 | 9 248 | |
| LIABILITIES MEASURED AT FAIR VALUE | ||||
| Interest rate swaps | 1 781 | 1 781 | ||
| TOTAL | 1 781 | 1 781 | ||
Available-for-sale assets also include EUR 1,420 thousand for unlisted shares (EUR 1,419 thousand in 9/2013), 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