Ilkka-Yhtymä Oyj's Interim Report for Q3/2011

Ilkka-Yhtymä Oyj      Interim Report 7 November 2011, at 2:00 pm

ILKKA-YHTYMÄ OYJ'S INTERIM REPORT FOR Q3/2011

JANUARY-SEPTEMBER 2011
- Net sales: EUR 37.0 million (EUR 33.9 million), up 9.0%
- Operating profit: EUR 15.0 million (EUR 9.8 million), up 52.6%
- Operating profit excluding Alma Media Corporation and the other associated
companies amounted to EUR 6.8 million (EUR 5.0 million), up 35.0% 
- Operating profit totalled 40.5% of net sales, or 18.4% excluding Alma Media
and other associated companies (14.8%) 
- Pre-tax profits: EUR 12.1 million (EUR 10.0 million), up 21.2%
- Earnings per share: EUR 0.44 (EUR 0.34)

JULY-SEPTEMBER 2011
- Net sales: EUR 11.6 million (EUR 11.0 million), up 6.2%
- Operating profit: EUR 5.8 million (EUR 3.8 million), up 53.0%
- Operating profit excluding Alma Media Corporation and the other associated
companies amounted to EUR 2.3 million (EUR 1.9 million), up 19.7% 
- Operating profit totalled 50.2% of net sales, or 19.3% excluding Alma Media
and other associated companies (17.1%) 
- Pre-tax profits: EUR 3.3 million (EUR 3.8 million), down 13.7%
- Earnings per share: EUR 0.13 (EUR 0.13)

NET SALES AND PROFIT PERFORMANCE

The Group's consolidated net sales for January-September showed a 9.0%
increase. Net sales came to EUR 37.0 million (EUR 33.9 million in the
corresponding period of the previous year). External net sales from the
publishing business grew by 6.0%. Advertising revenues grew by 7.8% and
circulation revenues grew by 1.3%. External net sales from the printing
business grew by 33.5%.  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 39% of consolidated net sales,
while advertising income and printing income represented 46% and 13%,
respectively. 

For Q3, net sales grew by 6.2% and totalled EUR 11.6 million (EUR 11.0
million). External net sales from the publishing business grew by 3.2%.
Advertising revenues grew by 2.8%, and circulation revenues grew by 0.8%.
External net sales from the printing business grew by 35.6%. Circulation income
accounted for 42% of consolidated net sales in July-September, while
advertising income and printing income represented 44% 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 30.5 million (EUR 29.2
million), up by 4.5% year on year. For July-September, operating expenses
amounted to EUR 9.5 million (EUR 9.2 million), up 3.5%. For January-September,
expenses arising from materials and services increased by 14.1%, particularly
due to growth in printing volumes as well as a rise in the prices of printing
materials and distribution. Personnel expenses for January-September increased
by 1.7%. The increases agreed in the industry's collective agreements for 2011
will only impact in full on the personnel expenses for the year end. 

The share of the associated companies' result for January-September was EUR 8.2
million (EUR 4.8 million). Consolidated operating profit amounted to EUR 15.0
million (EUR 9.8 million), up by 52.6% year-on-year. The Group's operating
margin was 40.5% (28.9%). Operating profit excluding Alma Media Corporation and
the other associated companies amounted to EUR 6.8 million (EUR 5.0 million),
representing 18.4% (14.8%) of net sales. Operating profit from publishing grew
by EUR 1.1 million, and operating profit from printing grew by EUR 0.8 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 July-September, the share of the associated companies' result was EUR 3.6
million (EUR 1.9 million). Consolidated operating profit amounted to EUR 5.8
million (EUR 3.8 million). Operating profit increased 53.0% from the
corresponding period. The Group's operating margin was 50.2% (34.8%) in
July-September. Operating profit excluding Alma Media Corporation and the other
associated companies amounted to EUR 2.3 million (EUR 1.9 million),
representing 19.3% (17.1%) of net sales. For the third quarter, operating
profit from publishing grew by EUR 0.1 million, and operating profit from
printing grew by EUR 0.3 million. 

Net financial expenses for January-September amounted to EUR 2.9 million (net
financial income in the corresponding period of the previous year EUR 0.2
million). Net gain/loss on shares held for trading was EUR -0.9 million (EUR
0.2 million). Interest expenses excluding the fair value change in derivatives
hedging them totalled EUR 1.9 million (EUR 0.5 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, unrealised
changes in the market value of the interest rate swaps are recognised through
profit or loss. In January-September, the market value of these interest rate
swaps fell by EUR 1.0 million. 

Net financial expenses for July-September amounted to EUR 2.5 million (net
financial income in the corresponding period of the previous year EUR 0.03
million). Net gain/loss on shares held for trading was EUR -0.5 million (EUR
0.2 million). For Q3, interest expenses excluding the fair value change in
derivatives hedging them totalled EUR 0.6 million (EUR 0.2 million).  In
July-September, the market value of interest rate swaps fell by EUR 1.4
million. 

Pre-tax profits for January-September totalled EUR 12.1 million (EUR 10.0
million). Direct taxes amounted to EUR 0.8 million (EUR 1.2 million), and the
Group's net profit for the period totalled EUR 11.3 million (EUR 8.8 million).
The Group's net profit for the third quarter totalled EUR 3.4 million (EUR 3.3
million). 

BALANCE SHEET AND FINANCING

The consolidated balance sheet total came to EUR 193.7 million (EUR 147.5
million), with EUR 102.9 million (EUR 100.3 million) of equity. On the
reporting date of 30 September 2011, the balance sheet value of the holding in
the associated company Alma Media Corporation was EUR 152.8 million and the
market value of the shares was EUR 136.3 million. According to the management's
estimate, write-down in this holding is unnecessary. 

Interest-bearing liabilities totalled EUR 77.5 million (EUR 35.5 million). The
equity ratio was 54.3% (70.0%), and shareholders' equity per share stood at EUR
4.01 (EUR 3.91). The increase in financial assets for the period totalled EUR
2.1 million (decrease EUR 0.9 million), with liquid assets at the end of the
period totalling EUR 5.2 million (EUR 5.8 million). 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 its long-term financing, Ilkka-Yhtymä has renewed the EUR
15.5 million bullet loan originally maturing in 2013, to 2018. 

Cash flow from operations for the period came to EUR 24.1 million (EUR 11.7
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 -3.5 million (EUR -1.4 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-September, 53,703 series-I shares of Ilkka-Yhtymä Oyj were traded,
accounting for 1.2% of the total number of series-I shares. The total value of
the shares exchanged was EUR 0.5 million. In total, 1,147,029 series-II shares
were traded, corresponding to 5.4% of the total number of series-II shares. The
total value of the shares traded was EUR 9.1 million. The lowest price at which
series-I shares of Ilkka-Yhtymä Oyj were traded during the period under review
was EUR 8.90, and the highest per-share price was EUR 11.69. The lowest price
at which series-II shares were traded was EUR 5.95 and the highest EUR 8.99.
The market value of the share capital at the closing rate for the reporting
period was EUR 176.0 million. 

RISKS AND RISK MANAGEMENT


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. The negative impacts of the increasing uncertainty in
both the international and Finland's economy on 2011 media advertising are
difficult to assess. Moreover, it is difficult to evaluate the impacts of the 9
per cent value-added tax, imposed on newspapers' subscription fees by the 2012
budget proposal, on circulation and printing volumes. Other operating 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. 

BUSINESS ARRANGEMENTS IN ASSOCIATED COMPANIES

Arena Interactive Oy, a subsidiary of Ilkka-Yhtymä Oyj's associated companies
Arena Partners Oy (37.82%) and Alma Media Oyj (29.8%), purchased the entire
capital stock of Steam Communications Oy on 9 September 2011. Both Arena
Interactive and Steam Communications specialise in the development and
production of mobile services, and message communication. 

Arena Partners Oy, an associated company of Ilkka-Yhtymä Oyj (37.82%) acquired
36.16% of Uranus Konsultointi Oy on 4 October 2011. Uranus is engaged in two
business sectors: matching experts with employers (www.uranus.fi) and managing
the recruitment process (www.laura.fi). Uranus is also a member of the world's
leading international electronic recruitment network, The Network
(www.the-network.com), providing its services in Finland. 

OUTLOOK FOR 2011

Increasing uncertainty in international economy makes the assessment of media
advertising in Finland in 2011 challenging. However, media advertising is
forecast to remain at the previous year's level during the final months of the
year. Due to consumer caution and media competition, newspapers' circulation
income is also predicted to remain at the previous year's level. Printing
business volumes have decreased permanently in Finland. 

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 interest rate trends, 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 (Group ownership 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

Ilkka-Yhtymä Group's interim report has been prepared in compliance with the
recognition and measurement principles of IFRS, but not in compliance with all
IAS 34 requirements. 

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)              7-9/    7-9/  Change     1-9/     1-9/  Change    1-12/
                         2011    2010       %     2011     2010       %     2010
NET SALES              11 650  10 970       6   36 973   33 929       9   46 530
Change in inventories      12       9      26       21        4     428       -5
 of finished and                                                                
 unfinished products                                                            
Other operating           111     100      10      343      321       7      429
 income                                                                         
Materials and          -3 531  -3 142      12  -11 061   -9 691      14  -13 108
 services                                                       
Employee benefits      -3 924  -3 843       2  -12 855  -12 637       2  -17 183
Depreciation             -780    -803      -3   -2 327   -2 385      -2   -3 182
Other operating costs  -1 287  -1 411      -9   -4 300   -4 507      -5   -6 341
Share of associated     3 593   1 939      85    8 197    4 789      71    7 337
 companies' profit                                                              
OPERATING PROFIT        5 844   3 819      53   14 990    9 822      53   14 479
Financial income and   -2 522      29   -8883   -2 853      192   -1587      192
 expenses                                                                       
PROFIT BEFORE TAXES     3 322   3 847     -14   12 137   10 014      21   14 670
Income tax                 70    -498    -114     -825   -1 234     -33   -1 779
PROFIT FOR THE PERIOD   3 391   3 350       1   11 312    8 780      29   12 892
 UNDER REVIEW                                                                   
Earnings per share,      0.13    0.13       1     0.44     0.34      29     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)                   7-9/   7-9/  Change    1-9/   1-9/  Change   1-12/
                              2011   2010       %    2011   2010       %    2010
PROFIT FOR THE PERIOD UNDER  3 391  3 350       1  11 312  8 780      29  12 892
 REVIEW                                                             
OTHER COMPREHENSIVE INCOME:                                                     
Available-for-sale assets     -458                   -516                    682
Share of associated            -84    116    -173    -203    241    -184     344
 companies' other                                                               
 comprehensive income                                                           
Income tax related to          119                    134                   -203
 components of other                                                            
 comprehensive income                                                           
Other comprehensive income,   -423    116    -467    -585    241    -343     824
 net of tax                                                                     
TOTAL COMPREHENSIVE INCOME   2 968  3 465     -14  10 726  9 021      19  13 715
 FOR THE PERIOD                                                                 



SEGMENT INFORMATION




Group net sales (EUR      7-9/    7-9/   Change    1-9/    1-9/   Change   1-12/
 1,000)                   2011    2010        %    2011    2010        %    2010
Publishing              10 305   9 988        3  32 110  30 335        6  41 386
Printing                 3 438   2 930       17  11 229   9 398       19  13 052
Non-allocated              501     487        3   1 505   1 463        3   1 942
Net sales between       -2 594  -2 436        6  -7 872  -7 267        8  -9 850
 segments                                                                       
Group net sales total   11 650  10 970        6  36 973  33 929        9  46 530



Group operating profit      7-9/   7-9/   Change    1-9/   1-9/   Change   1-12/
 (EUR 1,000)                2011   2010        %    2011   2010        %    2010
Publishing                 1 843  1 725        7   5 830  4 763       22   6 786
Printing                     515    237      117   1 461    685      113   1 177
Associated companies       3 593  1 939       85   8 197  4 789       71   7 337
Non-allocated               -107    -82      -31    -498   -415      -20    -821
Group operating profit     5 844  3 819       53  14 990  9 822       53  14 479
 total                                                                          




CONSOLIDATED BALANCE SHEET




(EUR 1,000)                                  9/2011   9/2010  Change %  12/2010
ASSETS                                                                         
NON-CURRENT ASSETS                                                             
Intangible rights                             1 228    1 150         7    1 284
Goodwill                                        314      314                314
Investment properties                           319      417       -23      390
Property, plant and equipment                13 994   15 665       -11   15 150
Shares in associated companies              153 485  108 246        42  161 248
Available-for-sale assets                    10 683    6 371        68    7 754
Other tangible assets                           214      214                214
TOTAL NON-CURRENT ASSETS                    180 237  132 377        36  186 354
Current assets                                                                 
Inventories                                     606      621        -2      757
Trade and other receivables                   4 162    4 266        -2    3 322
Income tax assets                             1 639    1 617         1      144
Financial assets at fair value                1 926    2 849       -32    3 412
through profit or loss                                                         
Cash and cash equivalents                     5 160    5 772       -11    3 047
TOTAL Current assets                         13 494   15 125       -11   10 681
Total assets                                193 731  147 502        31  197 035
SHAREHOLDERS' EQUITY AND LIABILITIES                                           
SHAREHOLDER'S EQUITY                                                           
Share capital                                 6 416    6 416              6 416
Fair value reserve and other reserves        48 620   48 522         0   49 002
Retained earnings                            47 888   45 398         5   49 612
SHAREHOLDER'S EQUITY                        102 924  100 336         3  105 030
NON-CURRENT LIABILITIES                                                        
Deferred tax liability                          722    1 309       -45    1 443
Non-current interest-bearing liabilities     76 457   33 204       130   78 465
Non-current interest-free liabilities           129                            
NON-CURRENT LIABILITIES                      77 308   34 513       124   79 909
CURRENT LIABILITIES                                                            
Current interest-bearing liabilities          1 088    2 273       -52    4 545
Accounts payable and other payables          10 658    8 922        19    7 368
Income tax liability                          1 754    1 459        20      183
CURRENT LIABILITIES                          13 499   12 653         7   12 096
SHAREHOLDERS' EQUITY AND LIABILITIES TOTAL  193 731  147 502        31  197 035



CONSOLIDATED CASH FLOW STATEMENT




(EUR 1,000)                                               1-9/     1-9/    1-12/
                                                          2011     2010     2010
CASH FLOW FROM OPERATIONS                                                       
Profit for the period under review                      11 312    8 780   12 892
Adjustments                                             -2 225   -1 379   -2 586
Change in working capital                                1 147      470     -364
CASH FLOW FROM OPERATIONS                               10 234    7 872    9 942
BEFORE FINANCE AND TAXES                                                        
Interest paid                                           -1 106     -359     -844
Interest received                                           84       43       63
Dividends received                                      15 935    6 339    6 368
Other financial items                                      337     -528     -750
Direct taxes paid                                       -1 337   -1 711   -2 128
CASH FLOW FROM OPERATIONS                               24 147   11 656   12 652
CASH FLOW FROM INVESTMENTS                                                      
Investments in tangible and                               -625     -714     -916
intangible assets, net                                                          
Acquisition of shares in associated companies                      -137  -30 487
Other investments, net                                  -3 445     -808   -1 509
Repayments of loan receivables                                       58       58
Dividends received from investments                        613      247      247
CASH FLOW FROM INVESTMENTS                              -3 457   -1 354  -32 607
CASH FLOW BEFORE FINANCING ITEMS                        20 690   10 302  -19 955
CASH FLOW FROM FINANCING                                                        
Change in current loans                                 -5 850   -2 273         
Change in non-current loans                                               25 261
Dividends paid and other profit distribution           -12 727   -8 905   -8 908
CASH FLOW FROM FINANCING                               -18 577  -11 177   16 353
INCREASE (+) OR DECREASE (-)IN FINANCIAL ASSETS          2 114     -876   -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         5 160    5 772    3 047



GROUP KEY FIGURES




                                                  9/2011      9/2010     12/2010
Earnings/share (EUR)                                0.44        0.34        0.50
Shareholders' equity/share (EUR)                    4.01        3.91        4.09
Average number of personnel                          345         347         343
Investments (EUR 1,000) *)                         4 257       2 057      53 522
Interest-bearing debt (EUR 1,000)                 77 545      35 477      83 011
Equity ratio, %                                     54.3        70.0        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  1-9/2010          l  reserv        equity fund      es  earnin         
                                   e                                 gs         
SHAREHOLDERS' EQUITY   6 416                     48 498      24  45 359  100 298
 1.1.                                                                           
Comprehensive income                                              9 021    9 021
 for the period                                                                 
Dividend                                                         -8 983   -8 983
 distribution                                                                   
TOTAL SHAREHOLDERS'    6 416                     48 498      24  45 398  100 336
 EQUITY 9/2010                                                                  






Change in             Share    Fair           Invested   Other  Retaine    Total
 shareholders'       capita   value       unrestricted  reserv        d         
 equity  1-9/2011         l  reserv        equity fund      es  earning         
                                  e                                   s         
SHAREHOLDERS'         6 416     480             48 498      24   49 612  105 030
 EQUITY 1.1.                                                                    
Comprehensive                  -382                              11 108   10 726
 income for the                                                                 
 period                                                                         
Dividend                                                        -12 833  -12 833
 distribution                                                                   
TOTAL SHAREHOLDERS'   6 416      98             48 498      24   47 888  102 924
 EQUITY 9/2011                     



GROUP CONTINGENT LIABILITIES




(EUR 1,000)                                             9/2011  9/2010  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                                          80 272  36 156  109 679
Contingent liabilities on behalf of associated company                         
Guarantees                                               2 767   2 458    2 458








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, 7 November 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