Ilkka-Yhtymä Oyj Interim Report 4 November 2013, at 3:00pm
ILKKA-YHTYMÄ OYJ'S INTERIM REPORT FOR Q3/2013
JANUARY-SEPTEMBER 2013
- Net sales: EUR 33.2 million (EUR 34.3 million), down 3.2%
- Operating profit from the Group's own operations, excluding Alma Media
Corporation and the other associated companies, amounted to EUR 4.2 million
(EUR 4.3 million), down 3.3%
- Operating margin of the Group's own operations, excluding Alma Media
Corporation and the other associated companies, was 12.5 (12.6).
- The holding in the associated company Alma Media Corporation was written down
by EUR 27 million. The write-down has no impact on cash flow.
- Reported operating loss was EUR 17.9 million (operating profit EUR 9.7
million for January-September 2012) and reported operating margin -54 (28.3).
- Consolidated earnings per share including earnings of the associated
companies and excluding the write-down EUR 0.32 (EUR 0.28)
- Reported earnings per share EUR -0.73 (EUR 0.28)
- Equity ratio (43.2%) remained good (55.9% Q3/2012)
JULY-SEPTEMBER 2013
- Net sales: EUR 10.6 million (EUR 10.8 million), down 1.6%
- Operating profit from the Group's own operations, excluding Alma Media
Corporation and the other associated companies, amounted to EUR 1.8 million
(EUR 1.4 million), up 25.6%
- Operating margin of the Group's own operations, excluding Alma Media
Corporation and the other associated companies, was 16.6 (13.0).
- Following the EUR 27 million non-recurring write-down on the holding in the
associated company Alma Media Corporation, the Group's reported operating loss
was EUR 24 million (operating profit EUR 3.8 million for July-September 2012)
and reported operating margin -226.3 (34.8).
- Consolidated earnings per share including earnings of the associated
companies and excluding the write-down EUR 0.09 (EUR 0.11)
- Reported earnings per share EUR -0.96 (EUR 0.11)
BUSINESS ENVIRONMENT
According to the Economic Survey of the Ministry of Finance released on 16
September 2013, Finnish GDP will contract by 0.5% in 2013 and begin to grow in
2014.
In media monitored by TNS Ad Intelligence, advertising decreased by 4.8% in
September and 9.2% in January-September compared to the corresponding period
last year. In January-September, advertising in traditional newspapers fell by
16.2%.
NET SALES AND PROFIT PERFORMANCE
The Group's consolidated net sales for January-September showed a 3.2% decline
compared to the corresponding period of the previous year. Net sales came to
EUR 33.2 million (EUR 34.3 million). External net sales from the publishing
business fell by 6.0%. Advertising revenues fell by 10.6% and circulation
revenues fell by 1.2%. The decline in the net sales of the publishing business
was caused by the weakening of the advertising market due to the economic
conditions and competition. External net sales from the printing business
increased by 16.5%. Circulation income accounted for 44% of consolidated net
sales, while advertising income and printing income represented 41% and 15%,
respectively.
For Q3, net sales decreased by 1.6% and totalled EUR 10.6 million (EUR 10.8
million). External net sales from the publishing business fell by 3.6%.
Advertising revenues fell by 4.8%, and circulation revenues fell by 3.0%.
External net sales from the printing business increased by 14.7%. Circulation
income accounted for 46% of consolidated net sales in July-September, while
advertising income and printing income represented 41% and 13%, 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 29.3 million (EUR 30.3
million), down by 3.3% year on year. For July-September, operating expenses
amounted to EUR 9.0 million (EUR 9.5 million), down 5.7%. For
January-September, expenses arising from materials and services increased by
2.8%. Personnel expenses decreased by 3.6%. In cooperation with employees,
voluntary cost savings measures were agreed in May 2013, corresponding to
approximately one week of holiday pay leave in 2013. Other operating costs
decreased by 3.3%. Depreciation contracted by 30.4%.
The share of the associated companies' result for January-September was EUR
-22.1 million following the write-down (EUR 5.4 million in January-September
2012). A EUR 27 million write-down has been recorded on the holding in the
associated company Alma Media Corporation as a result of an impairment test.
The write-down has no impact on cash flow.
For January-September, operating profit from the Group's own operations,
excluding Alma Media Corporation and the other associated companies, amounted
to EUR 4.2 million (EUR 4.3 million), representing 12.5% (12.6%) of net sales.
Consolidated operating profit including earnings of the associated companies
and excluding the EUR 27 million write-down was EUR 9.1 million (EUR 9.7
million). Reported operating loss was EUR 17.9 million (operating profit EUR
9.7 million in January-September 2012). Reported operating margin was -54
(28.3). Operating profit from publishing fell by EUR 0.4 million, and operating
profit from printing grew by EUR 0.2 million.
For July-September, the share of the associated companies' result was EUR -25.8
million following the write-down (EUR 2.4 million in July-September 2012). For
July-September, operating profit from the Group's own operations, excluding
Alma Media Corporation and the other associated companies, amounted to EUR 1.8
million (EUR 1.4 million), representing 16.6% (13.0%) of net sales.
Consolidated operating profit including earnings of the associated companies
and excluding the EUR 27 million write-down was EUR 3.0 million (EUR 3.8
million). Reported operating loss was EUR 24 million (operating profit EUR 3.8
million in July-September 2012). Reported operating margin was -226.3 (34.8).
For the third quarter, operating profit from publishing grew by EUR 0.2
million, and operating profit from printing grew by EUR 0.05 million.
Net financial income for January-September amounted to EUR 0.04 million (net
financial expenses in the corresponding period of the previous year EUR 2.1
million). Net gain/loss on shares held for trading was EUR 0.1 million (EUR
-0.2 million). Interest expenses excluding the fair value change in derivatives
hedging them totalled EUR 1.3 million (EUR 1.7 million). In order to hedge
against interest rate risk, in 2010 the company transformed some of its
floating-rate liabilities into fixed-rate liabilities, by means of interest
rate swaps. Given that the Group does not apply hedge accounting, unrealised
changes in the market value of the interest rate swaps are recognised through
profit or loss. In January-September 2013, the market value of these interest
rate swaps grew by EUR 0.7 million (in January-September 2012, the market value
fell by EUR 0.9 million).
Net financial expenses for July-September amounted to EUR 0.3 million (EUR 0.7
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 0.5 million). In July-September
2013, the market value of interest rate swaps grew by EUR 0.05 million (in
July-September 2012, the market value fell by EUR 0.2 million).
Profit before tax for January-September including earnings of the associated
companies and excluding the EUR 27 million write-down was EUR 9.1 million (EUR
7.6 million) and reported loss before tax was EUR 17.9 million (profit before
tax EUR 7.6 million for January-September 2012). Direct taxes amounted to EUR
0.9 million (EUR 0.4 million). Consolidated profit for the period including
earnings of the associated companies and excluding the write-down was EUR 8.2
million (EUR 7.2 million) and reported loss was EUR 18.8 million (profit EUR
7.2 million for January-September 2012). Q3 profit including earnings of the
associated companies and excluding the write-down was EUR 2.3 million (EUR 2.9
million) and reported loss was EUR 24.7 million (profit EUR 2.9 million for
July-September 2012).
BALANCE SHEET AND FINANCING
The consolidated balance sheet total came to EUR 138.4 million (EUR 185.9
million), with EUR 57.9 million (EUR 101.5 million) of equity. A EUR 27 million
write-down has been recorded on the holding in the associated company Alma
Media Corporation as a result of an impairment test. The write-down has no
impact on cash flow. On the reporting date of 30 September 2013, the balance
sheet value of the holding in the associated company, Alma Media Corporation,
was EUR 103.5 million following the write-down and the market value of the
shares was EUR 71.3 million.
Interest-bearing liabilities totalled EUR 68.1 million (EUR 71.3 million). The
equity ratio was 43.2 per cent (55.9%), and shareholders' equity per share was
EUR 2.25 (EUR 3.96). The increase in financial assets for January-September
totalled EUR 1.2 million (in January-September 2012, the decrease in financial
assets EUR 8.5 million), with liquid assets at the end of the period totalling
EUR 3.4 million (Q3/2012: EUR 2.4 million).
Cash flow from operations for the period came to EUR 8.1 million (EUR 7.0
million). This includes EUR 5.9 million (EUR -2.0 million) from the Group's own
operations as well as EUR 2.2 million (EUR 9.0 million) of dividend income from
Alma Media Corporation. Due to VAT changes, 2012 subscription fees for the
Group's provincial newspapers were exceptionally invoiced in the amount of EUR
6.6 million in December 2011. Cash flow from investments totalled EUR -0.7
million (EUR -0.2 million).
SHARE PERFORMANCE
The Series I shares of Ilkka-Yhtymä Oyj were listed on the Helsinki Stock
Exchange in 1981 and have remained listed ever since. The Series II shares have
been listed since their issue in 1988, and on 10 June 2002 they were
transferred from the I List of the Helsinki Stock Exchange to the Main List. At
present, the Series II shares of Ilkka-Yhtymä Oyj are listed on the NASDAQ OMX
Helsinki List, in the Consumer Services sector, the company's market value
being classified as Mid Cap. The Series I shares are listed on the Pre List.
In January-September, 39,197 series-I shares of Ilkka-Yhtymä Oyj were traded,
accounting for 0.9 per cent of the total number of series-I shares. The total
value of the shares traded was EUR 0.2 million. In total, 1,365,917 series-II
shares were traded, corresponding to 6.4 per cent of the total number of series
II shares. The total value of the shares traded was EUR 4.9 million. The lowest
price at which series-I shares of Ilkka-Yhtymä Oyj were traded during the
period under review was EUR 4.36, and the highest per-share price was EUR 7.95.
The lowest price at which series-II shares were traded was EUR 2.76 and the
highest EUR 5.19. The market value of the share capital at the closing rate for
the reporting period was EUR 92.3 million.
RISKS AND RISK MANAGEMENT
In the current economic climate, major uncertainties are associated with the
predictability of both net sales and operating profit. Ilkka-Yhtymä's most
significant short-term risks are related to the development of media
advertising, in particular, as well as circulation and printing volumes, which
affect the industry in general. Other risks associated with the Group's own
operations and its holding in associated company Alma Media Corporation are
described in more detail in the Annual Report 2012.
The Group's major financial risks include credit risk of the Group's operative
business, the risk associated with the price of shares held for trading,
liquidity risk and the risk of changes in market interest rates applied to the
loan portfolio. In order to hedge against interest rate risk, on 21 December
2010 the company transformed some of its floating-rate liabilities to a fixed
rate, by means of interest rate swaps. Given that the Group does not apply
hedge accounting, changes in the market value of the interest rate swap are
recognised through profit and loss. Other financial risks are discussed in more
detail in the 2012 Annual Report.
CORPORATE GOVERNANCE AND THE ANNUAL GENERAL MEETING
On 18 April 2013, the Annual General Meeting (AGM) of Ilkka-Yhtymä Oyj approved
the financial statements, discharged the members of the Supervisory Board and
the Board of Directors and the Managing Director from liability and decided
that a per-share dividend of EUR 0.15 be paid for the year 2012.
The number of members on the Supervisory Board for 2013 was confirmed to be 25.
Of the Supervisory Board members whose term had come to an end, the following
were re-elected for the term ending in 2017: Markku Akonniemi (Töysä), Juhani
Hautamäki (Ylivieska), Heikki Järvi-Laturi (Teuva), Petri Latva-Rasku (Tampere)
ja Marja Vettenranta (Laihia). The employee representatives Terhi Ekola (Vaasa)
and Niina Vuolio (Seinäjoki) were elected as new members of the Supervisory
Board.
At the Annual General Meeting it was decided to maintain the payments made to
the Chairman of the Supervisory Board and the board members at their current
level: the Chairman will receive a retainer of EUR 1,500 per month and a fee of
EUR 400 per meeting, and the board members will be paid a fee of EUR 400 per
meeting attended. The board members' travel expenses are reimbursed in
accordance with the current maximum level specified by the tax authorities.
Ernst & Young Oy, Authorised Public Accountants, was elected as the auditor,
with Authorised Public Accountant, M.Sc.(Econ.) Harri Pärssinen as the
principal auditor. It was decided that the auditors would be reimbursed per the
invoice.
The AGM authorised the Board of Directors to decide upon a donation to be put
toward charitable causes or similar, totalling, at maximum, EUR 50,000, as well
as to decide upon the recipients, purposes of use, schedules and other terms of
these donations.
On 6 May 2013, the Supervisory Board re-elected Sari Mutka, whose term had come
to an end, to the Board of Directors of Ilkka-Yhtymä Oyj. Lasse Hautala will
continue as chairman of the Supervisory Board, while Perttu Rinta will continue
as vice-chairman. At its membership meeting, the Board of Directors re-elected
Seppo Paatelainen as its chairman, while Timo Aukia will continue as
vice-chairman.
OUTLOOK FOR 2013
In the current economic climate, forecasting net sales in the media sector and,
in particular, media advertising spending involves major uncertainties. Due to
consumer caution, VAT on circulation revenues and media competition,
newspapers' circulation revenues will decrease in 2013. Printing business
volumes have declined permanently in Finland and the prospects for growth in
the sector are weak.
Advertising in Finland has been weaker than expected, particularly in the first
quarter.
The net sales of Ilkka-Yhtymä Group are estimated to decline slightly from the
2012 level.
Group operating profit from Ilkka-Yhtymä's own operations, and operating profit
as a percentage of net sales, excluding the share of Alma Media's and other
associated companies' results, are expected to decline from the 2012 level. In
addition, the year's results will depend on interest-rate trends, the price
performance of securities investments, and changes in the value of the
associated companies.
The associated company Alma Media Corporation (Group ownership 29.79%) will
have a significant impact on Group operating profit and profit.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
DRAFTING PRINCIPLES
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.
The interim report has been prepared according to the same principles as the
2012 financial statements. New or revised IFRS standards and IFRIC
interpretations that become effective in 2013 have also been complied with, as
specified in the 2012 financial statements. These changes have not affected the
reported figures. The principles and formulae for the calculation of the
indicators, presented on page 61 of the 2012 annual report, remain unchanged.
The figures in the interim report have been presented unaudited.
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2013 2012 % 2013 2012 % 2012
NET SALES 10 614 10 785 -2 33 186 34 281 -3 46 158
Change in 2 -18 112 8 6 35
inventories of
finished and
unfinished products
Other operating 102 133 -24 296 342 -14 437
income
Materials and -3 460 -3 429 1 -10 823 -10 527 3 -13 980
services
Employee benefits -3 782 -4 057 -7 -12 746 -13 215 -4 -17 824
Depreciation -525 -732 -28 -1 559 -2 239 -30 -2 918
Other operating -1 188 -1 277 -7 -4 200 -4 345 -3 -5 966
costs
Share of associated -25 784 2 353 -1196 -22 064 5 405 -508 -16 774
companies' profit
*)
OPERATING PROFIT/ -24 022 3 757 -739 -17 904 9 708 -284 -10 868
LOSS
Financial income and -284 -686 59 38 -2 126 102 -2 550
expenses
PROFIT/ LOSS BEFORE -24 306 3 071 -891 -17 866 7 582 -336 -13 418
TAX
Income tax -362 -174 108 -893 -384 133 -669
PROFIT/ LOSS FOR THE -24 668 2 897 -951 -18 759 7 198 -361 -14 087
PERIOD UNDER REVIEW
Earnings per share, -0.96 0.11 -951 -0.73 0.28 -361 -0.55
undiluted (EUR)**)
The undiluted share 25 665 25 665 25 665 25 665 25 665
average (to the
nearest
thousand)**)
*) Includes non-recurring write-down on the holding in the associated company
Alma Media Corporation, 1-12/2012: EUR 22 million, 1-9/2013: EUR 27 million.
**) There are no factor diluting the figure.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(EUR 1,000) 7-9/ 7-9/ Chang 1-9/ 1-9/ Change 1-12/ 2013 2012 e 2013 2012 % 2012
%
PROFIT/ LOSS FOR THE -24 668 2 897 -951 -18 759 7 198 -361 -14 087
PERIOD UNDER REVIEW
OTHER COMPREHENSIVE
INCOME:
Items that may be
reclassified
subsequently to profit
or loss:
Available-for-sale -1 2 -3 184 -3
assets
Share of associated 48 45 7 -106 172 -162 100
companies' other
comprehensive income
Income tax related to -1 1 -184 1
components of other
comprehensive income
Other comprehensive 48 44 9 -105 170 -162 98
income, net of tax
TOTAL COMPREHENSIVE -24 620 2 941 -937 -18 864 7 368 -356 -13 989
INCOME FOR THE PERIOD
SEGMENT INFORMATION
GROUP NET SALES
(EUR 1,000) 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2013 2012 % 2013 2012 % 2012
Publishing 9 268 9 608 -4 % 28 404 30 167 -6 % 40 528
Printing 3 078 3 144 -2 % 10 091 10 147 -1 % 13 710
Non-allocated 567 534 6 % 1 701 1 602 6 % 2 139
Net sales between -2 299 -2 502 -8 % -7 010 -7 635 -8 % -10 219
segments
Total 10 614 10 785 -2 % 33 186 34 281 -3 % 46 158
GROUP OPERATING PROFIT/ LOSS
(EUR 1,000) 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2013 2012 % 2013 2012 % 2012
Publishing 1 263 1 044 21 3 256 3 607 -10 5 046
Printing 408 358 14 1 254 1 012 24 1 379
Associated companies -25 784 2 353 -1196 -22 064 5 405 -508 -16 774
Non-allocated 92 2 4305 -349 -316 -10 -519
Total -24 022 3 757 -739 -17 904 9 708 -284 -10 868
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 9/2013 9/2012 Change 12/2012
%
ASSETS
NON-CURRENT ASSETS
Intangible rights 857 1 029 -17 1 008
Goodwill 314 314 314
Investment properties 195 245 -20 233
Property, plant and equipment 11 812 12 039 -2 11 862
Shares in associated companies 104 360 150 665 -31 128 796
Available-for-sale assets 10 668 10 861 -2 10 723
Other tangible assets 214 214 214
TOTAL NON-CURRENT ASSETS 128 421 175 368 -27 153 151
Current assets
Inventories 549 622 -12 647
Trade and other receivables 3 698 4 225 -12 2 950
Income tax assets 997 1 620 -38 118
Financial assets at fair value 1 306 1 603 -19 1 695
through profit or loss
Cash and cash equivalents 3 434 2 412 42 2 263
TOTAL Current assets 9 984 10 482 -5 7 673
Total assets 138 405 185 850 -26 160 823
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDER'S EQUITY
Share capital 6 416 6 416 6 416
Invested unrestricted equity fund and other 48 623 48 621 48 621
reserves
Retained earnings 2 814 46 505 -94 25 529
SHAREHOLDER'S EQUITY 57 853 101 542 -43 80 567
NON-CURRENT LIABILITIES
Deferred tax liability 152 112 36 23
Non-current interest-bearing liabilities 66 365 70 577 -6 63 954
Non-current interest-free liabilities 102 115 -12 102
NON-CURRENT LIABILITIES 66 620 70 805 -6 64 079
CURRENT LIABILITIES
Current interest-bearing liabilities 1 773 695 155 6 633
Accounts payable and other payables 11 219 11 831 -5 9 390
Income tax liability 941 977 -4 155
CURRENT LIABILITIES 13 932 13 504 3 16 177
SHAREHOLDERS' EQUITY AND LIABILITIES TOTAL 138 405 185 850 -26 160 823
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1-9/ 1-9/ 1-12/
2013 2012 2012
CASH FLOW FROM OPERATIONS
Profit/ loss for the period under review -18 759 7 198 -14 087
Adjustments 24 457 -697 22 867
Change in working capital 1 427 -6 295 -6 732
CASH FLOW FROM OPERATIONS 7 125 205 2 048
BEFORE FINANCE AND TAXES
Interest paid -846 -1 009 -2 235
Interest received 25 35 46
Dividends received 2 337 9 107 9 117
Other financial items 344 -41 -53
Direct taxes paid -858 -1 253 -947
CASH FLOW FROM OPERATIONS 8 127 7 044 7 976
CASH FLOW FROM INVESTMENTS
Investments in tangible and -1 313 -541 -1 083
intangible assets, net
Other investments, net 121 -150 -16
Dividends received from investments 507 515 529
CASH FLOW FROM INVESTMENTS -686 -176 -570
CASH FLOW BEFORE FINANCING ITEMS 7 441 6 868 7 406
CASH FLOW FROM FINANCING
Change in current loans -2 452 -3 238 -3 925
Change in non-current loans -1 964 -1 964
Dividends paid and other profit distribution -3 818 -10 180 -10 180
CASH FLOW FROM FINANCING -6 270 -15 382 -16 069
INCREASE (+) OR DECREASE (-)IN FINANCIAL ASSETS 1 171 -8 514 -8 663
Liquid assets at the beginning of the financial 2 263 10 926 10 926
period
Liquid assets at the end of the financial period 3 434 2 412 2 263
KEY FIGURES
9/2013 9/2012 12/2012
Earnings/share (EUR) -0.73 0.28 -0.55
Shareholders' equity/share (EUR) 2.25 3.96 3.14
Average number of personnel 325 339 336
Investments (EUR 1,000) *) 1 338 806 1 311
Interest-bearing debt (EUR 1,000) 68 138 71 272 70 587
Equity ratio, % 43.2 55.9 50.7
Average number of shares during the 25 665 208 25 665 208 25 665 208
financial period
Number of shares at the end on the financial 25 665 208 25 665 208 25 665 208
period
*) 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 Retaine Total
shareholders' capita value unrestricted reserv d
equity 1-9/ 2012 l reserv equity fund es earning
e s
SHAREHOLDERS' 6 416 101 48 498 24 49 401 104 440
EQUITY 1.1.
Comprehensive -2 7 370 7 368
income for the
period
Dividend -10 266 -10 266
distribution
TOTAL SHAREHOLDERS' 6 416 99 48 498 24 46 505 101 542
EQUITY 9/ 2012
Change in Share Fair Invested Other Retaine Total
shareholders' capita value unrestricted reserv d
equity 1-9/ 2013 l reserv equity fund es earning
e s
SHAREHOLDERS' 6 416 99 48 498 24 25 529 80 567
EQUITY 1.1.
Comprehensive 2 -18 865 -18 864
income for the
period
Dividend -3 850 -3 850
distribution
TOTAL SHAREHOLDERS' 6 416 101 48 498 24 2 814 57 853
EQUITY 9/ 2013
GROUP CONTINGENT LIABILITIES
(EUR 1,000) 9/2013 9/2012 12/2012
Collateral pledged for own commitments
Mortgages on company assets 1 245 1 245 1 245
Mortgages on real estate 8 801 8 801 8 801
Pledged shares 45 795 64 377 65 730
Contingent liabilities on behalf of associated company
Guarantees 4 059 4 182 4 096
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
(EUR 1,000) 1-9/ 1-9/ Change 1-12/
2013 2012 % 2012
Carrying amount at the beginning of the 11 862 13 481 -12 13 481
financial period
Increase 1 199 448 167 838
Depreciation for the financial period -1 248 -1 890 -34 -2 456
Carrying amount at the end of the financial 11 812 12 039 -2 11 862
period
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) 9/2013 9/2012 12/2012
Sales of goods and services
To associated companies 189 207 288
To other related parties 669 614 823
Purchases of goods and services
From associated companies 379 387 463
From other related parties 29 2 5
Trade receivables
From associated companies 22 15 13
From other related parties 73 107 47
Accounts payable
To associated companies 22 8 4
Transactions with related parties are conducted at fair market prices.
EMPLOYEE BENEFITS TO MANAGEMENT
(EUR 1,000) 9/2013 9/2012 12/2012
Salaries and other short-term employee benefits 748 710 936
Management comprises the Board of Directors, Supervisory Board, Managing
Director and Group Executive Team. The stated figures based on the cash method
do not differ significantly from those based on the accrual method.
FAIR VALUE HIERARCHY OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES MEASURED AT
FAIR VALUE
Fair value at end of period
(EUR 1,000) 9/2013 Level 1 Level 2 Level 3
ASSETS MEASURED AT FAIR VALUE
Financial assets at fair value through profit 1 306 1 306
or loss
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 1,419 thousand for unlisted shares,
which are measured at cost since no reliable fair value was available for them.
At Level 1 of the hierarchy, fair value is based on quoted prices (unadjusted)
in active markets for identical assets or liabilities.
At Level 2, the instruments' fair value is based on inputs other than quoted
prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
At Level 3, the instruments' fair value is based on inputs for the asset or
liability that are not based on observable market data.
General statement
This report contains certain statements that are estimates based on the
management's best knowledge at the time they were made. For this reason, they
involve a certain amount of inherent risk and uncertainty. The estimates may
change in the event of significant changes in general economic and business
conditions.
ILKKA-YHTYMÄ OYJ
Board of Directors
Matti Korkiatupa
Managing Director
For more information:
Matti Korkiatupa, Managing Director, Ilkka-Yhtymä Oyj
Tel. +358 (0)500 162 015
DISTRIBUTION
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www.ilkka-yhtyma.fi