Ilkka-Yhtymä Oyj's Interim Report for Q2/2011

Ilkka-Yhtymä Oyj      Interim Report 1 August 2011, at 3:00 pm

ILKKA-YHTYMÄ OYJ'S INTERIM REPORT FOR Q2/2011

JANUARY-JUNE 2011
- Net sales: EUR 25.3 million (EUR 23.0 million), up 10.3%
- Operating profit: EUR 9.1 million (EUR 6.0 million), up 52.4%
- Operating profit excluding Alma Media Corporation and the other associated
companies amounted to EUR 4.5 million (EUR 3.2 million), up 44.1% 
- Operating profit totalled 36.1% of net sales, or 17.9% excluding Alma Media
and other associated companies (13.7%) 
- Pre-tax profits: EUR 8.8 million (EUR 6.2 million), up 42.9%
- Earnings per share: EUR 0.31 (EUR 0.21)

APRIL-JUNE 2011
- Net sales: EUR 13.2 million (EUR 11.9 million), up 11.1%
- Operating profit: EUR 5.0 million (EUR 3.5 million), up 42.8%
- Operating profit excluding Alma Media Corporation and the other associated
companies amounted to EUR 2.4 million (EUR 1.9 million), up 27.2% 
- Operating profit totalled 37.7% of net sales, or 18.2% excluding Alma Media
and other associated companies (15.9%) 
- Pre-tax profits: EUR 4.6 million (EUR 3.6 million), up 28.7%
- Earnings per share: EUR 0.17 (EUR 0.12)

NET SALES AND PROFIT PERFORMANCE

The Group's consolidated net sales for January-June showed a 10.3% increase.
Net sales came to EUR 25.3 million (EUR 23.0 million in the corresponding
period of the previous year). External net sales from the publishing business
grew by 7.3%. Advertising revenues grew by 10.2% and circulation revenues grew
by 1.5%. External net sales from the printing business grew by 32.7%. The
higher net sales from publishing resulted from a recovery in advertising
volumes, due to, for example, election advertising early in the year. The
growth in net sales for the printing business was caused by new customers,
recovering volumes and price increases due to printing materials. Circulation
income accounted for 38% of consolidated net sales, while advertising income
and printing income represented 46% and 14%, respectively. 

For Q2, net sales grew by 11.1% and totalled EUR 13.2 million (EUR 11.9
million). External net sales from the publishing business grew by 9.0%.
Advertising revenues grew by 13.3%, and circulation revenues grew by 1.4%.
External net sales from the printing business grew by 27.2%. Circulation income
accounted for 37% of consolidated net sales in April-June, while advertising
income and printing income represented 48% and 14%, 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 21.0 million (EUR 20.0
million), up by 5.0% year on year. For April-June, operating expenses amounted
to EUR 10.9 million (EUR 10.1 million), up 8.3%. For January-June, expenses
arising from materials and services increased by 15.0%, particularly due to
growth in printing volumes as well as a rise in the prices of printing
materials and distribution. Personnel expenses for January-June increased by
1.6%. The increases agreed in the industry's collective agreementsfor 2011 will
only come into full effect in the personnel expenses for the entire year. 

The share of the associated companies' result for January-June was EUR 4.6
million (EUR 2.9 million). Consolidated operating profit amounted to EUR 9.1
million (EUR 6.0 million), up by 52.4% year-on-year. The Group's operating
margin was 36.1% (26.1%). Operating profit excluding Alma Media Corporation and
the other associated companies amounted to EUR 4.5 million (EUR 3.2 million),
representing 17.9% (13.7%) of net sales. Operating profit from publishing grew
by EUR 0.9 million, and operating profit from printing grew by EUR 0.5 million.
The considerable rise in operating profit from printing was due to higher
volumes, a modest rise in costs early in the year and the fact that the first
quarter last year included costs for ceasing operation of the Vaasa printing
unit. 

For April-June, the share of the associated companies' result was EUR 2.6
million (EUR 1.6 million). Consolidated operating profit amounted to EUR 5.0
million (EUR 3.5 million). Operating profit increased 42.8% from the
corresponding period. The Group's operating margin was 37.7% (29.4%) in
April-June. Operating profit excluding Alma Media Corporation and the other
associated companies amounted to EUR 2.4 million (EUR 1.9 million),
representing 18.2% (15.9%) of net sales. For the second quarter, operating
profit from publishing grew by EUR 0.6 million. Operating profit from printing
remained at the previous year's level. 

Net financial income for January-June amounted to EUR -0.3 million (EUR 0.2
million). Net gain/loss on shares held for trading was EUR -0.4 million (EUR
0.0 million). Interest expenses excluding the fair value change in derivatives
hedging them totalled EUR 1.3 million (EUR 0.4 million). In order to hedge
against interest rate risk, on 21 December 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, changes in
the market value of the interest rate swap are recognised through profit or
loss. In January-June, the change in the interest rate swap's market value was
EUR 0.3 million to the positive. 

Net financial income for April-June amounted to EUR -0.4 million (EUR 0.1
million). Net gain/loss on shares held for trading was EUR -0.3 million (EUR
-0.1 million). For Q2, interest expenses excluding the fair value change in
derivatives hedging them totalled EUR 0.6 million (EUR 0.2 million). In
April-June, the change in the interest rate swap's market value was EUR 0.4
million to the negative. 

Pre-tax profits for January-June totalled EUR 8.8 million (EUR 6.2 million).
Direct taxes amounted to EUR 0.9 million (EUR 0.7 million), and the Group's net
profit for the period totalled EUR 7.9 million (EUR 5.4 million). The Group's
net profit for the second quarter totalled EUR 4.2 million (EUR 3.1 million). 

BALANCE SHEET AND FINANCING

The consolidated balance sheet total came to EUR 193.7 million (EUR 144.5
million), with EUR 100.0 million (EUR 96.9 million) of equity. On the reporting
date of 30 June 2011, the balance sheet value of the holding in the associated
company Alma Media Corporation was EUR 149.4 million and the market value of
the shares was EUR 151.6 million. 

Interest-bearing liabilities totalled EUR 80.8 million (EUR 35.5 million). The
equity ratio was 52.9% (69.3%), and shareholders' equity per share stood at EUR
3.89 (EUR 3.77). The increase in financial assets for the period totalled EUR
4.2 million (decrease EUR 1.8 million), with liquid assets at the end of the
period totalling EUR 7.2 million (EUR 4.8 million). After the review period,
EUR 3.6 million in interest-bearing loans were repaid in July on an accelerated
basis. EUR 2.4 million of said amount was for loan repayments originally
scheduled for 2012. In order to safeguard long-term financing, Ilkka-Yhtymä has
agreed on the refinancing of the EUR 15.5 million bullet loan originally
maturing in 2013 until 2018. 

Cash flow from operations for the period came to EUR 22.1 million (EUR 10.1
million). Cash flow from operations includes EUR 15.7 million (EUR 6.1 million)
in dividend income from Alma Media Corporation. Cash flow from investments
totalled EUR -3.0 million (EUR -0.8 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 listed on
the Main List of the Helsinki Stock Exchange. At present, the series-II shares
of Ilkka-Yhtymä Oyj are listed on the NASDAQ OMX Helsinki List, in the Consumer
Discretionary sector, the company's market value being classified as Mid Cap.
The series-I shares are listed on the Pre List. 

In January-June, 39,736 series-I shares of Ilkka-Yhtymä Oyj were traded,
accounting for 0.9% of the total number of series-I shares. The total value of
the shares exchanged was EUR 0.4 million. In total, 892,657 series-II shares
were traded, corresponding to 4.2% of the total number of series-II shares. The
total value of the shares traded was EUR 7.4 million. The lowest price at which
series-I shares of Ilkka-Yhtymä Oyj were traded during the period under review
was EUR 9.56, and the highest per-share price was EUR 10.99. The lowest price
at which series-II shares were traded was EUR 6.46 and the highest EUR 8.99.
The market value of the share capital at the closing rate for the reporting
period was EUR 194.6 million. 

RISKS AND RISK MANAGEMENT


It remains difficult to estimate the impacts of both the recovery of the
Finnish economy and the growing uncertainty in the international economy on
media advertising as well as circulation and printing volumes in 2011.
Ilkka-Yhtymä's most significant short-term risks are related to the development
of media advertising as well as circulation and printing volumes, which affect
the industry in general. It is a challenge to forecast how the 9% VAT the new
government imposed on newspaper subscription fees in its government programme
will affect circulation volumes. Other business risks are discussed in more
detail in the 2010 Annual Report. 

The Group's major financial risks include credit risk, 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 2010 Annual Report. 

CORPORATE GOVERNANCE AND THE ANNUAL GENERAL MEETING

On 14 April 2011, 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 0.50 be paid for the year 2010. 

The number of members on the Supervisory Board for 2011 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 2015: Lasse Hautala (Kauhajoki), Perttu
Rinta (Mikkeli), Satu Heikkilä (Helsinki), Ari Rinta-Jouppi (Vähäkyrö) and
Raija Tikkala (Jurva). Minna Sillanpää of Seinäjoki and Jorma Vierula of
Seinäjoki were elected as new members of the Supervisory Board for the term
ending in 2015. 

The AGM decided to raise the remuneration of the Chairman and members of the
Supervisory Board. The Chairman of the Supervisory Board will be paid a monthly
fee of EUR 1,500 and a meeting fee of EUR 400, while other members will be paid
EUR 400 per meeting. 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 Tomi Englund as the principal auditor. It was
decided that the auditors would be reimbursed per the invoice. 

The AGM approved the Board of Directors' proposal on amending the Articles of
Association. The amendments include the following: 
(i)   that Section 5(2), concerning the retirement age of a Supervisory Board
member, be removed; 
(ii) that Section 8(1) be amended by removing the regulations concerning the
retirement age of a member of the Board of Directors and by increasing the
maximum number of Board members to six (6), and Section 8(3), concerning the
quorum for the Board of Directors, be removed; and 
(iii) that Section 11(2), concerning shareholders' initiatives to the General
Meeting, be removed. 

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. 

The proposal by Osakesäästäjien Keskusliitto ry (Shareholders' Association) and
Kari Karpoff to eliminate the Supervisory Board was not approved. 

On 2 May 2011, the Supervisory Board re-elected Seppo Paatelainen and Tapio
Savola, 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. 

FLAGGING ANNOUNCEMENTS

As a result of a share purchase completed on 10 June 2011, Pohjois-Karjalan
Kirjapaino Oyj's holding in Ilkka-Yhtymä Oyj's share capital exceeded 10%.
Holding increased to 10.0039% of the share capital and 2.3914% of the voting
rights. 

EVENTS AFTER THE REPORT PERIOD


After the review period, EUR 3.6 million in interest-bearing loans were repaid
in July on an accelerated basis. EUR 2.4 million of said amount was for loan
repayments originally scheduled for 2012. In order to safeguard long-term
financing, Ilkka-Yhtymä has agreed on the refinancing of the EUR 15.5 million
bullet loan originally maturing in 2013 until 2018. 


OUTLOOK FOR 2011

Due to the growing uncertainty in the international economy, it is challenging
to forecast media advertising as well as circulation and printing volumes in
2011. Media advertising is expected to see further growth in Finland during the
rest of the year. Due to consumer caution and media competition, newspapers'
circulation income is predicted to remain at the previous year's level.
Printing business volumes have decreased permanently in Finland, but there are
tentative signs of growth in the sector. 

Some growth is forecast for the net sales of Ilkka-Yhtymä's printing and
publishing business. 

Group operating profit from Ilkka-Yhtymä's own operations, and operating profit
as a percentage of net sales, excluding the share of Alma Media and other
associated companies, is estimated to grow significantly compared with 2010 in
spite of the rising trend in costs during the rest of the year. In addition,
the year's results will be influenced by upward trends in interest rates,
changes in the market value of interest rate swaps, any trading in securities
and the price performance of securities investments. 

The associated company Alma Media Corporation (29.79%) will have a significant
impact on Group operating profit and profit. 

In the current economic climate, several uncertainty factors remain, related to
the predictability of both net sales and operating 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. 

Since 1 January 2011, the Group has complied with the following new or updated
standards and interpretations: 

- IAS 24 Related Party Disclosures - the revised standard. This revision
clarifies and simplifies the definition of a related party, in particular with
regard to the parties' significant influence and joint control. The revision
has no impact on the interim report. 
- IFRS 32 Financial instruments: Presentation - Classification of Rights
Issues. The amendment concerns the classification of share issues, options and
subscription rights denominated in foreign currencies. In the future, share
issues, options and subscription rights may, under certain conditions, be
classified as equity rather than derivative instruments, as previously. This
amendment has no impact on the interim report. 
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments. The
interpretation addresses certain situations (sometimes referred to as ‘debt for
equity swaps') where an entity renegotiates the terms of a financial liability
and issues an equity instrument to a creditor of the entity to extinguish all
or part of the financial liability. Such swaps are primarily considered as
repayment of debt. The fair value of the financial liability's carrying amount
and of the equity instrument is recognised in profit or loss. This
interpretation has no impact on the interim report. 
- Annual improvements to IFRS and IFRIC (5/2010). These improvements will
chiefly enter into force in 2011. Several minor changes made have no bearing on
the interim report. 

In other respects, the interim report was compiled in compliance with the same
accounting principles as the previous financial reports. The principles and
formulae for the calculation of the indicators, presented on page 53 of the
2010 annual report, remain unchanged. 

The figures in the interim report have been presented unaudited.


CONSOLIDATED INCOME STATEMENT





(EUR 1,000)                4-6/    4-6/  Change    1-6/    1-6/  Change    1-12/
                           2011    2010       %    2011    2010       %     2010
NET SALES                13 180  11 859      11  25 323  22 959      10   46 530
Change in inventories         2      -4     140       9      -5     271       -5
 of finished and                                                                
 unfinished products                                                            
Other operating income      120      97      23     232     220       6      429
Materials and services   -3 853  -3 242      19  -7 530  -6 549      15  -13 108
Employee benefits        -4 609  -4 418       4  -8 932  -8 794       2  -17 183
Depreciation               -775    -804      -4  -1 547  -1 581      -2   -3 182
Other operating costs    -1 661  -1 598       4  -3 014  -3 096      -3   -6 341
Share of associated       2 569   1 593      61   4 604   2 850      62    7 337
 companies' profit                                                              
OPERATING PROFIT          4 972   3 482      43   9 147   6 004      52   14 479
Financial income and       -397      72    -655    -331     163    -303      192
 expenses                                                                       
PROFIT BEFORE TAXES       4 575   3 554      29   8 815   6 167      43   14 670
Income tax                 -328    -420     -22    -895    -736      22   -1 779
PROFIT FOR THE PERIOD     4 247   3 134      36   7 920   5 431      46   12 892
 UNDER REVIEW                                                                   
Earnings per share,        0.17    0.12      36    0.31    0.21      46     0.50
 undiluted (EUR)*)                                                              
The undiluted share      25 665  25 665          25 665  25 665           25 665
 average, adjusted for                                                          
 the share issue (to                                                            
 the nearest                                                                    
 thousand)*)                                                                    



*) There are no factor diluting the figure.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME




(EUR 1,000)                    4-6/   4-6/  Change   1-6/   1-6/  Change   1-12/
                               2011   2010       %   2011   2010       %    2010
PROFIT FOR THE PERIOD UNDER   4 247  3 134      36  7 920  5 431      46  12 892
 REVIEW                                                   
OTHER COMPREHENSIVE INCOME:                                                     
Available-for-sale assets       -11                   -58                    682
Share of associated             -97     78    -225   -119    125    -195     344
 companies' other                                                               
 comprehensive income                                                           
Income tax related to             3                    15                   -203
 components of other                                                            
 comprehensive income                                                           
Other comprehensive income,    -105     78    -236   -162    125    -229     824
 net of tax                                                                     
TOTAL COMPREHENSIVE INCOME    4 141  3 212      29  7 758  5 556      40  13 715
 FOR THE PERIOD                                                                 



CONSOLIDATED BALANCE SHEET




(EUR 1,000)                                  6/2011   6/2010  Change %  12/2010
ASSETS                                                                         
NON-CURRENT ASSETS                                                             
Intangible rights                             1 262    1 212         4    1 284
Goodwill                                        314      314                314
Investment properties                           343      443       -23      390
Property, plant and equipment                14 287   16 281       -12   15 150
Shares in associated companies              149 977  106 192        41  161 248
Available-for-sale assets                    10 969    5 926        85    7 754
Non-current trade and other receivables                   30      -100         
Other tangible assets                           214      214                214
TOTAL NON-CURRENT ASSETS                    177 365  130 613        36  186 354
Current assets                                                                 
Inventories                                     638      547        17      757
Trade and other receivables                   5 043    4 609         9    3 322
Income tax assets                               942    1 174       -20      144
Financial assets at fair value                2 445    2 734       -11    3 412
through profit or loss                                                         
Cash and cash equivalents                     7 224    4 812        50    3 047
TOTAL Current assets                         16 292   13 876        17   10 681
Total assets                                193 657  144 489        34  197 035
SHAREHOLDERS' EQUITY AND LIABILITIES                                           
SHAREHOLDER'S EQUITY                                                           
Share capital                                 6 416    6 416              6 416
Fair value reserve and other reserves        48 959   48 522         1   49 002
Retained earnings                            44 581   41 932         6   49 612
SHAREHOLDER'S EQUITY                         99 956   96 871         3  105 030
NON-CURRENT LIABILITIES                                                        
Deferred tax liability                        1 328    1 362        -3    1 443
Non-current interest-bearing liabilities     76 101   33 204       129   78 465
NON-CURRENT LIABILITIES                      77 429   34 566       124   79 909
CURRENT LIABILITIES                                                            
Current interest-bearing liabilities          4 657    2 273       105    4 545
Accounts payable and other payables          10 416    9 865         6    7 368
Income tax liability                          1 199      914        31      183
CURRENT LIABILITIES                          16 272   13 052        25   12 096
SHAREHOLDERS' EQUITY AND LIABILITIES TOTAL  193 657  144 489        34  197 035



CONSOLIDATED CASH FLOW STATEMENT




(EUR 1,000)                                               1-6/     1-6/    1-12/
                                                          2011     2010     2010
CASH FLOW FROM OPERATIONS                                                       
Profit for the period under review                       7 920    5 431   12 892
Adjustments                                             -2 040     -712   -2 586
Change in working capital                                1 479    1 148     -364
CASH FLOW FROM OPERATIONS                                7 360    5 866    9 942
BEFORE FINANCE AND TAXES                                                        
Interest paid                                             -909     -359     -844
Interest received                                           61       31       63
Dividends received                                      15 935    6 339    6 368
Other financial items                                      470     -523     -750
Direct taxes paid                                         -778   -1 262   -2 128
CASH FLOW FROM OPERATIONS                               22 139   10 092   12 652
CASH FLOW FROM INVESTMENTS                                                      
Investments in tangible and                               -478     -529     -916
intangible assets, net                                                          
Acquisition of shares in associated companies                      -137  -30 487
Other investments, net                                  -3 273     -360   -1 509
Repayments of loan receivables                                       28       58
Dividends received from investments                        789      246      247
CASH FLOW FROM INVESTMENTS                              -2 962     -752  -32 607
CASH FLOW BEFORE FINANCING ITEMS                        19 177    9 339  -19 955
CASH FLOW FROM FINANCING                                                        
Change in current loans                                 -2 273   -2 273         
Change in non-current loans                                               25 261
Dividends paid and other profit distribution           -12 727   -8 903   -8 908
CASH FLOW FROM FINANCING                               -14 999  -11 176   16 353
INCREASE (+) OR DECREASE (-)IN FINANCIAL ASSETS          4 177   -1 837   -3 602
Liquid assets at the beginning of the financial          3 047    6 648    6 648
 period                                                                         
Liquid assets at the end of the financial period         7 224    4 812    3 047



GROUP KEY FIGURES




                                                  6/2011      6/2010     12/2010
Earnings/share (EUR)                                0.31        0.21        0.50
Shareholders' equity/share (EUR)                    3.89        3.77        4.09
Average number of personnel                          339         344         343
Investments (EUR 1,000) *)                         3 902       1 507      53 522
Interest-bearing debt (EUR 1,000)                 80 758      35 477      83 011
Equity ratio, %                                     52.9        69.3        53.8
Adjusted average number of shares during the  25 665 208  25 665 208  25 665 208
 period                                                                         
Adjusted number of shares on the balance      25 665 208  25 665 208  25 665 208
 sheet date                                                                     


*) 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              Share    Fair           Invested   Other  Retain    Total
 shareholders'        capita   value       unrestricted  reserv      ed         
 equity 1-6/2010           l  reserv        equity fund      es  earnin         
                                   e                                 gs         
SHAREHOLDERS' EQUITY   6 416                     48 498      24  45 359  100 298
 1.1.                                                                           
Comprehensive income                                              5 556    5 556
 for the period                                                                 
Dividend                                                         -8 983   -8 983
 distribution                                                                   
TOTAL SHAREHOLDERS'    6 416                     48 498      24  41 932   96 871
 EQUITY 6/2010                                                                  






Change in             Share    Fair           Invested   Other  Retaine    Total
 shareholders'       capita   value       unrestricted  reserv        d         
 equity 1-6/2011          l  reserv        equity fund      es  earning          e                                   s         
SHAREHOLDERS'         6 416     480             48 498      24   49 612  105 030
 EQUITY 1.1.                                                                    
Comprehensive                   -43                               7 801    7 758
 income for the                                                                 
 period                                                                         
Dividend                                                        -12 833  -12 833
 distribution                                                                   
TOTAL SHAREHOLDERS'   6 416     437             48 498      24   44 581   99 956
 EQUITY 6/2011                                                                  



GROUP CONTINGENT LIABILITIES




(EUR 1,000)                                             6/2011  6/2010  12/2010
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                                          89 280  33 633  109 679
Contingent liabilities on behalf of associated company                         
Guarantees                                               2 458            2 458



SEGMENT INFORMATION

NET SALES BY SEGMENT




(EUR 1,000)             4-6/    4-6/  Change %    1-6/    1-6/  Change %   1-12/
                        2011    2010              2011    2010              2010
Publishing                                                                      
External              11 381  10 444         9  21 751  20 268         7  41 252
Inter-segments            28      30        -6      55      79       -31     134
Publishing total      11 409  10 474         9  21 806  20 348         7  41 386
Printing                                                                        
External               1 799   1 414        27   3 571   2 690        33   5 276
Inter-segments         2 140   1 891        13   4 220   3 777        12   7 776
Printing total         3 939   3 305        19   7 791   6 468        20  13 052
Non-allocated                                                                   
External                   1       1       -23       2       1        39       2
Inter-segments           501     488         3   1 003     975         3   1 940
Non-allocated total      502     488         3   1 004     976         3   1 942
Elimination           -2 670  -2 409        11  -5 278  -4 832         9  -9 850
Group net sales       13 180  11 859        11  25 323  22 959        10  46 530
 total                                                                          

OPERATING PROFIT BY SEGMENT 


(EUR 1,000)                4-6/   4-6/  Change %   1-6/   1-6/  Change %   1-12/
                           2011   2010             2011   2010              2010
Publishing                2 279  1 669        37  3 987  3 039        31   6 786
Printing                    396    404        -2    946    448       111   1 177
Associated companies      2 569  1 593        61  4 604  2 850        62   7 337
Non-allocated              -272   -184       -48   -391   -333       -17    -821
Group operating profit    4 972  3 482        43  9 147  6 004        52  14 479
 total                                                                          



ASSETS BY SEGMENT




(EUR 1,000)         1-6/2011  1-6/2010  Change %  1-12/2010
Publishing            15 513    15 050         3     10 318
Printing              12 176    13 522       -10     12 336
Non-allocated        165 968   115 917        43    174 381
Group assets total   193 657   144 489        34    197 035



CHANGES IN PROPERTY, PLANT AND EQUIPMENT




(EUR 1,000)                                        1-6/    1-6/   Change   1-12/
                                                   2011    2010        %    2010
Carrying amount at the beginning of the          15 150  17 218      -12  17 218
 financial period                                                               
Increase                                            451     830      -46   1 055
Decrease                                            -14    -404      -96    -405
Depreciation for the financial period            -1 300  -1 363       -5  -2 719
Carrying amount at the end of the financial      14 287  16 281      -12  15 150
 period                                                                         




RELATED PARTY TRANSACTIONS

The following related party transactions were carried out:




(EUR 1,000)                      6/2011  6/2010  12/2010
Sales of goods and services                             
To associated companies             153     115      322
To other related parties            485     393      909
Purchases of goods and services                         
From associated companies           263     291      532
From other related parties           54      13       13
Trade receivables                                       
From associated companies            23      22       53
From other related parties           60      16       53
Accounts payable                                        
To associated companies              10      15       11


Transactions with related parties are conducted at fair market prices.


Employee benefits to management




(EUR 1,000)                                      6/2011  6/2010  12/2010
Salaries and other short-term employee benefits     402     377      744


The management comprises the Board of Directors, Supervisory Board, Managing
Director and Group Executive Team. The figures stated on the basis of the cash
method do not differ significantly from those based on the accrual method. 




General statement

This report contains certain statements that are estimates based on the
management's best knowledge at the time they were made. For this reason, they
involve a certain amount of inherent risk and uncertainty. The estimates may
change in the event of significant changes in general economic and business
conditions. 

Seinäjoki, 1 August 2011


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