Ilkka-Yhtymä Oyj Interim Report 27 October 2008, at 1.00 p.m.
ILKKA-YHTYMÄ OYJ'S INTERIM REPORT FOR Q3/2008
The Group's consolidated net sales for the report period totalled EUR 40.9
million (EUR 40.1 million), up by 2.2 per cent year-on-year. Earnings per share
were EUR 0.85 (EUR 0.82) and shareholders' equity per share EUR 3.28 (EUR 4.26).
Consolidated operating profit came to EUR 8.1 million (EUR 9.0 million). Pre-tax
profits amounted to EUR 14.1 million (EUR 15.1 million) and net profit for the
period EUR 12.4 million (EUR 12.0 million).
Net Sales and Development of Results
The Group's consolidated net sales increased during January-September by 2.2 per
cent year-on-year, amounting to EUR 40.9 million (EUR 40.1 million in the
reference period in 2007). Net sales for Q3 increased by 3.9 per cent. In the
January-September period, external net sales from publishing grew by 1.9 per
cent and, during the third quarter, by 2.3 per cent. In the January-September
period, external net sales from the printing business grew by 3.3 per cent.
July-September saw an 11.1 per cent increase in external net sales from the
printing business. Other operating income for January-September totalled EUR 0.5
million (EUR 0.4 million).
Operating expenses for January-September amounted to EUR 33.3 million
(EUR 31.5 million), up by 5.8 per cent year-on-year. This increase was
attributable to outsourced services, staff costs and other business costs. Staff
costs increased partially due to investments in e-business and the Vaasa Housing
Fair. During the third quarter, costs increased by 8.2 per cent as a result of
growth in staff costs, printing sales volumes and other business costs,
including non-recurring items. Depreciation included in the operating expenses
for the period amounted to EUR 2.1 million (EUR 2.4 million).
Consolidated operating profit for the report period came to EUR 8.1 million (EUR
9.0 million), accounting for 19.8 per cent (22.5 per cent) of net sales. The
operating profit for publishing remained at the previous year's level, but that
of the printing business decreased, partially due to the transfer of the layout
operations of the Ilkka and Etelä-Pohjanmaa newspapers from printing to
publishing. Consolidated operating profit for the third quarter came to EUR 2.7
million (EUR 3.0 million), accounting for 20.6 per cent (23.8 per cent) of net
sales.
In March, Ilkka-Yhtymä Oyj purchased 5,255,200 shares of Alma Media Corporation
at a purchase price of EUR 51.8 million. Following the purchase, Ilkka-Yhtymä
Oyj's shareholding in Alma Media Corporation increased from 3.3 per cent to 10.3
per cent. Ilkka-Yhtymä Oyj shall endeavour to act as a long-term owner in Alma
Media and participate in the development of its future operations.
Net financial income for January-September amounted to EUR 5.9 million (EUR 6.1
million), financial assets at fair value through profit or loss accounting for
EUR -0.5 million (EUR 0.4 million) and available-for-sale assets for EUR 7.2
million (EUR 5.0 million). Gains from available-for-sale financial assets for
the report period include EUR 6.9 million (EUR 1.6 million) in dividend income
from Alma Media Corporation. Gains from available-for-sale financial assets for
January-September 2007 include EUR 3.2 million in capital gains from sales of
Alma Media Corporation shares.
The share of associated companies' profit totalled EUR 0.07 million (EUR 0.06
million). Pre-tax profits amounted to EUR 14.1 million (EUR 15.1 million). Tax
totalled EUR 1.7 million (EUR 3.1 million) and the profit for the report period
EUR 12.4 million (EUR 12.0 million).
Balance Sheet and Financing
The consolidated balance sheet total came to EUR 105.4 million (EUR 78.4
million), with EUR 48.1 million (EUR 62.4 million) of equity. The fair value
reserve decreased by EUR 13.8 million year-on-year and by EUR 13.6 million from
the beginning of 2008. The amount of interest-bearing liabilities at the end of
the report period amounted to EUR 43.5 million (EUR 0.0 million). Equity ratio
was 47.5 per cent (84.0 per cent). Liquid assets totalled EUR 3.3 million (EUR
14.0 million).
The cash flow of operations for the report period totalled EUR 10.0 million (EUR
8.4 million), while the investment cash flow came to EUR -48.2 million (EUR 10.2
million).
Pohjanmaan Lähisanomat Acquires the Business of the Kauhava Newspaper
On 31 May 2008, Pohjanmaan Lähisanomat Oy, part of the Ilkka-Yhtymä Group,
purchased the business operations of the Kauhava newspaper. Three local
newspapers are currently published in the area of the future City of Kauhava:
Kauhava, Härmät and Järviseudun Sanomat. As of 1 January 2009, the Härmät and
Kauhava newspapers, both published by Pohjanmaan Lähisanomat Oy, will be
combined to form Komiat, the initial circulation of which will be over 8,000
papers.
Shares
The Series II shares of Ilkka-Yhtymä Oyj are listed on the NASDAQ OMX Helsinki
List, Consumer Discretionary sector, the company's market value being classified
as Mid Cap. The Series I shares are listed on the Pre List.
During January-September, 205,093 Series I shares of Ilkka-Yhtymä Oyj were
traded, comprising 4.8 per cent of the total number of Series I shares. The
total value of the exchanged shares was EUR 2.6 million. A total of 1,496,749
series II shares were traded, comprising 14.4 per cent of the total number of
Series II shares. The total value of traded shares was EUR 16.6 million. The
lowest price at which Series I shares of Ilkka-Yhtymä Oyj were traded during the
report period was EUR 10.75, and the highest EUR 13.45. The lowest price at
which Series II shares were traded was EUR 9.99 and the highest EUR 12.40. The
market value of the share capital at the closing rate of the report period was
EUR 155.3 million.
Risks and Risk Management
No major near-term risks are evident in the publishing and printing businesses,
except for a potential decline in media advertising. A satisfying conclusion was
reached in the journalists' collective bargaining for the period 1 October
2008-30 April 2011. Other business risks are discussed in more detail in the
Annual Report for 2007.
The Group has EUR 43.5 million of interest-bearing loans, EUR 40 million of
which are long-term. Some of the loans are fixed-rate, some variable-rate.
The market value of publicly quoted available-for-sale financial assets on 30
September 2008 was EUR 63.7 million. Were this value to change by 5 per cent,
the change in equity would equal EUR 2.4 million.
Corporate Governance and the Annual General Meeting
On 14 April 2008, the Annual General Meeting 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 1.00 shall be paid for the year 2007.
The number of members on the Supervisory Board for 2008 was confirmed to be 28.
The following new members were elected onto the Supervisory Board to replace
members who resigned mid-term for the rest of their terms: Anne Katajamäki,
Seinäjoki (term ends in 2011), Sami Talso, Mustasaari (2010), Sami Eerola, Nurmo
(2010) and Johanna Kankaanpää, Ähtäri (2010). Of the Supervisory Board members
whose term had come to an end, the following were re-elected for the term ending
in 2012: Vesa-Pekka Kangaskorpi, Jyväskylä, Jarmo Rinta-Jouppi, Seinäjoki, Matti
Ritamäki, Lapua, Kimmo Simberg, Seinäjoki and Jyrki Viitala, Seinäjoki.
Ernst & Young Oy, Authorised Public Accountants, was elected the auditor, with
Authorised Public Accountants Tomi Englund and Pekka Kiljunen as the main
auditor. Authorised Public Accountants Päivi Virtanen and Johanna Winqvist-Ilkka
were elected deputy auditors.
The AGM decided to amend Sections 5(1), 7 and 9(1) of the Articles of
Association. The minimum number of Supervisory Board Members was amended to 20
and the maximum number to 30 in Section 5(1) of the Articles of Association,
while Sections 7 and 9(1) were amended to conform to the new Limited Liability
Companies Act, i.e. the Board of Directors will elect the Managing Director.
On 26 May 2008, the Supervisory Board re-elected Timo Aukia, whose term had come
to an end, to the Board of Directors of Ilkka-Yhtymä Oyj. Heikki Kuoppamäki was
elected as the 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
its Vice Chairman.
Events after the report period
In October, I-print Oy put into use an additional press unit for the newspaper
printing press, enabling a higher total page number for Ilkka-Yhtymä's
provincial papers as well as enhanced supplement options.
OUTLOOK FOR 2008
The predictability of the operating environment is challenging due to the
present economic turmoil caused by the financial markets.
Towards the end of the year, growth in media advertising is expected to come to
a standstill while printing business volumes are likely to remain almost
unchanged in Finland.
The net sales of Ilkka-Yhtymä Group for 2008 are anticipated to grow slightly
alongside publishing net sales. Operating profit and operating profit as a
percentage of net sales are forecast to decrease slightly from the healthy
levels of 2007.
The profit for the entire financial year will be affected by the increase in
interest expenses as well as securities trading volumes and the price
performance of securities investments. Despite these factors and the downturn in
the general economic situation, the profit for the entire financial year is
anticipated to come close to the 2007 levels.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
--------------------------------------------------------------------------------
| GROUP INCOME | 7-9/ | 7-9/ | Chang | 1-9/ | 1-9/ | Chang | 1-12/ |
| STATEMENT | 2008 | 2007 | e | 2008 | 2007 | e | 2007 |
| (EUR 1,000) | | | | | | | |
--------------------------------------------------------------------------------
| NET SALES | 13 309 | 12 811 | 4 % | 40 941 | 40 058 | 2 % | 54 885 |
--------------------------------------------------------------------------------
| Change in | 10 | 3 | 188 % | 9 | 20 | -55 % | 12 |
| inventories | | | | | | | |
| of finished | | | | | | | |
| and | | | | | | | |
| unfinished | | | | | | | |
| products | | | | | | | |
--------------------------------------------------------------------------------
| Other | 95 | 100 | -5 % | 498 | 427 | 17 % | 560 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Materials | -4 146 | -3 811 | 9 % | -12 463 | -11 977 | 4 % | -16 514 |
| and services | | | | | | | |
--------------------------------------------------------------------------------
| Employee | -4 099 | -3 909 | 5 % | -13 459 | -12 490 | 8 % | -17 415 |
| benefits | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -725 | -784 | -8 % | -2 142 | -2 382 | -10 % | -3 141 |
--------------------------------------------------------------------------------
| Other | -1 703 | -1 364 | 25 % | -5 268 | -4 648 | 13 % | -6 597 |
| operating | | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 2 741 | 3 046 | -10 % | 8 116 | 9 009 | -10 % | 11 790 |
| PROFIT | | | | | | | |
--------------------------------------------------------------------------------
| Financial | -626 | 361 | -274 | 5 928 | 6 064 | -2 % | 5 570 |
| income and | | | % | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Share of | 26 | 32 | -21 % | 68 | 57 | 19 % | 28 |
| associated | | | | | | | |
| companies' | | | | | | | |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| PROFIT | 2 141 | 3 439 | -38 % | 14 112 | 15 130 | -7 % | 17 388 |
| BEFORE TAXES | | | | | | | |
--------------------------------------------------------------------------------
| Income tax | -570 | -876 | -35 % | -1 683 | -3 089 | -46 % | -3 689 |
--------------------------------------------------------------------------------
| PROFIT FOR | 1 571 | 2 563 | -39 % | 12 429 | 12 041 | 3 % | 13 699 |
| THE PERIOD | | | | | | | |
| UNDER REVIEW | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.11 | 0.17 | -39 % | 0.85 | 0.82 | 3 % | 0.93 |
| share, | | | | | | | |
| undiluted | | | | | | | |
| (EUR)*) | | | | | | | |
--------------------------------------------------------------------------------
*) There are no factor diluting the figure.
SEGMENT INFORMATION
--------------------------------------------------------------------------------
| Group net | 7-9/ | 7-9/ | Chang | 1-9/ | 1-9/ | Chang | 1-12/ |
| sales (EUR | 2008 | 2007 | e | 2008 | 2007 | e | 2007 |
| 1,000) | | | | | | | |
--------------------------------------------------------------------------------
| Publishing | 10 833 | 10 574 | 2 % | 33 214 | 32 630 | 2 % | 44 428 |
--------------------------------------------------------------------------------
| Printing | 4 830 | 4 845 | 0 % | 14 770 | 15 370 | -4 % | 21 169 |
--------------------------------------------------------------------------------
| Non-allocated | 686 | 538 | 27 % | 2 064 | 1 620 | 27 % | 2 150 |
--------------------------------------------------------------------------------
| Net sales | -3 039 | -3 147 | -3 % | -9 107 | -9 563 | -5 % | -12 862 |
| between | | | | | | | |
| segments | | | | | | | |
--------------------------------------------------------------------------------
| Total | 13 309 | 12 811 | 4 % | 40 941 | 40 058 | 2 % | 54 885 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group | 7-9/ | 7-9/ | Chang | 1-9/ | 1-9/ | Chang | 1-12/ |
| operating | 2008 | 2007 | e | 2008 | 2007 | e | 2007 |
| profit (EUR | | | | | | | |
| 1,000) | | | | | | | |
--------------------------------------------------------------------------------
| Publishing | 2 216 | 2 244 | -1 % | 7 024 | 7 051 | 0 % | 9 507 |
--------------------------------------------------------------------------------
| Printing | 709 | 936 | -24 % | 2 079 | 2 691 | -23 % | 3 475 |
--------------------------------------------------------------------------------
| Non-allocated | -184 | -134 | 38 % | -986 | -733 | 35 % | -1 190 |
--------------------------------------------------------------------------------
| Operating | | | | -1 | -1 | 0 % | -1 |
| profit between | | | | | | | |
| segments | | | | | | | |
--------------------------------------------------------------------------------
| Total | 2 741 | 3 046 | -10 % | 8 116 | 9 009 | -10 % | 11 790 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP BALANCE SHEET (EUR 1,000) | |
--------------------------------------------------------------------------------
| | 9/2008 | 9/2007 | Change | 12/2007 |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | | |
--------------------------------------------------------------------------------
| Intangible rights | 727 | 413 | 76 % | 439 |
--------------------------------------------------------------------------------
| Goodwill | 314 | | | |
--------------------------------------------------------------------------------
| Investment property | 561 | 672 | -17 % | 646 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 19 911 | 18 109 | 10 % | 19 537 |
--------------------------------------------------------------------------------
| Shares in associated companies | 554 | 515 | 8 % | 486 |
--------------------------------------------------------------------------------
| Available-for-sale assets | 68 814 | 33 663 | 104 % | 34 666 |
--------------------------------------------------------------------------------
| Non-current trade and other | 39 | 39 | | 39 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other tangible assets | 214 | 214 | | 214 |
--------------------------------------------------------------------------------
| Deferred tax asset | 1 904 | | | |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 93 038 | 53 624 | 74 % | 56 027 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 885 | 951 | -7 % | 714 |
--------------------------------------------------------------------------------
| Trade and other receivables | 4 118 | 4 979 | -17 % | 3 997 |
--------------------------------------------------------------------------------
| Income tax assets | 2 523 | 1 338 | 89 % | 31 |
--------------------------------------------------------------------------------
| Financial assets at fair value | 1 547 | 3 559 | -57 % | 4 345 |
| through profit or loss | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 3 314 | 13 982 | -76 % | 12 396 |
--------------------------------------------------------------------------------
| TOTAL Current assets | 12 387 | 24 809 | -50 % | 21 482 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 105 425 | 78 433 | 34 % | 77 509 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | | |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDER'S EQUITY | | | | |
--------------------------------------------------------------------------------
| Share capital | 3 666 | 3 666 | | 3 666 |
--------------------------------------------------------------------------------
| Fair value reserve and other | 7 442 | 21 218 | -65 % | 21 041 |
| reserves | | | | |
--------------------------------------------------------------------------------
| Retained earnings | 36 963 | 37 542 | -2 % | 39 199 |
--------------------------------------------------------------------------------
| SHAREHOLDER'S EQUITY | 48 071 | 62 426 | -23 % | 63 907 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 1 639 | 4 886 | -66 % | 4 692 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 40 022 | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | 41 661 | 4 886 | 753 % | 4 692 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 3 478 | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 9 987 | 8 775 | 14 % | 7 903 |
| payables | | | | |
--------------------------------------------------------------------------------
| Income tax liability | 2 228 | 2 346 | -5 % | 1 008 |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | 15 692 | 11 121 | 41 % | 8 911 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 105 425 | 78 433 | 34 % | 77 509 |
| LIABILITIES TOTAL | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP CASH FLOW STATEMENT (EUR 1,000) |
--------------------------------------------------------------------------------
| | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATIONS | | | |
--------------------------------------------------------------------------------
| Profit for the period under review | 12 429 | 12 041 | 13 699 |
--------------------------------------------------------------------------------
| Adjustments | -2 515 | -775 | 1 109 |
--------------------------------------------------------------------------------
| Change in working capital | 1 044 | 454 | 257 |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATIONS | | | |
--------------------------------------------------------------------------------
| BEFORE FINANCE AND TAXES | 10 958 | 11 720 | 15 065 |
--------------------------------------------------------------------------------
| Financial income and expenses | 2 207 | -1 476 | -2 206 |
--------------------------------------------------------------------------------
| Direct taxes paid | -3 134 | -1 854 | -2 617 |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATIONS | 10 032 | 8 391 | 10 242 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTMENTS | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | -2 821 | -494 | -2 685 |
| intangible assets, net | | | |
--------------------------------------------------------------------------------
| Other investments, net | -52 590 | 9 002 | 7 759 |
--------------------------------------------------------------------------------
| Dividends received from investments | 7 236 | 1 737 | 1 738 |
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTMENTS | -48 175 | 10 245 | 6 813 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW BEFORE FINANCING ITEMS | -38 143 | 18 636 | 17 055 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | | | |
--------------------------------------------------------------------------------
| Change in current loans | 3 478 | -63 | -63 |
--------------------------------------------------------------------------------
| Change in non-current loans | 40 022 | -6 000 | -6 000 |
--------------------------------------------------------------------------------
| Dividends paid and other profit | -14 439 | -13 216 | -13 221 |
| distribution | | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | 29 061 | -19 279 | -19 285 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCREASE (+) OR DECREASE (-)IN | -9 082 | -644 | -2 230 |
| FINANCIAL ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets at the beginning of the | 12 396 | 14 626 | 14 626 |
| financial period | | | |
--------------------------------------------------------------------------------
| Liquid assets at the end of the | 3 314 | 13 982 | 12 396 |
| financial period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY FIGURES | |
--------------------------------------------------------------------------------
| | 9/2008 | 9/2007 | 12/2007 |
--------------------------------------------------------------------------------
| Earnings/share (EUR) | 0.85 | 0.82 | 0.93 |
--------------------------------------------------------------------------------
| Shareholders' equity/share (EUR) | 3.28 | 4.26 | 4.36 |
--------------------------------------------------------------------------------
| Average number of personnel | 398 | 393 | 388 |
--------------------------------------------------------------------------------
| Investments (EUR 1 000) *) | 55 697 | 1 848 | 5 283 |
--------------------------------------------------------------------------------
| Interest-bearing debt (EUR 1 | 43 500 | - | - |
| 000) | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 47.5 | 84.0 | 84.2 |
--------------------------------------------------------------------------------
*) Investment in tangible and intangible assets and available-for-sale assets
(shares).
Taxes included in the income statement are taxes corresponding to the result for
the period under review.
--------------------------------------------------------------------------------
| CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY (EUR 1,000) |
--------------------------------------------------------------------------------
| Change in | Share | Fair | Other | Retained | Total |
| shareholders' | capital | value | reserves | earnings | |
| equity 1-9/2007 | | reserve | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 3 666 | 5 540 | 12 862 | 38 700 | 60 768 |
| EQUITY 1.1. | | | | | |
--------------------------------------------------------------------------------
| Available-for-sal | | | | | |
| e | | | | | |
| financial assets: | | | | | |
--------------------------------------------------------------------------------
| Gain/loss on fair | | 6 200 | | | 6 200 |
| valuation | | | | | |
--------------------------------------------------------------------------------
| Amount | | -2 394 | | | -2 394 |
| transferred to | | | | | |
| income statement | | | | | |
--------------------------------------------------------------------------------
| Share of deferred | | -990 | | | -990 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Net gains and | | 2 816 | | | 2 816 |
| losses recognised | | | | | |
| in equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | 12 041 | 12 041 |
| period | | | | | |
--------------------------------------------------------------------------------
| Total gains and | | 2 816 | | 12 041 | 14 857 |
| losses | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | -13 199 | -13 199 |
| distribution | | | | | |
--------------------------------------------------------------------------------
| TOTAL | 3 666 | 8 357 | 12 862 | 37 542 | 62 426 |
| SHAREHOLDERS' | | | | | |
| EQUITY 9/2007 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | Share | Fair | Other | Retained | Total |
| shareholders' | capital | value | reserves | earnings | |
| equity 1-9/2008 | | reserve | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 3 666 | 8 179 | 12 862 | 39 199 | 63 907 |
| EQUITY 1.1. | | | | | |
--------------------------------------------------------------------------------
| Available-for-sal | | | | | |
| e | | | | | |
| financial assets: | | | | | |
--------------------------------------------------------------------------------
| Gain/loss on fair | | -18 376 | | | -18 376 |
| valuation | | | | | |
--------------------------------------------------------------------------------
| Share of deferred | | 4 778 | | | 4 778 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Net gains and | | -13 599 | | | -13 599 |
| losses recognised | | | | | |
| in equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | 12 429 | 12 429 |
| period | | | | | |
--------------------------------------------------------------------------------
| Total gains and | | -13 599 | | 12 429 | -1 170 |
| losses | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | -14 666 | -14 666 |
| distribution | | | | | |
--------------------------------------------------------------------------------
| TOTAL | 3 666 | -5 419 | 12 862 | 36 963 | 48 071 |
| SHAREHOLDERS' | | | | | |
| EQUITY 9/2008 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP CONTINGENT LIABILITIES (EUR 1,000) |
--------------------------------------------------------------------------------
| | 9/2008 | 9/2007 | 12/2007 |
--------------------------------------------------------------------------------
| Collateral pledged for own | | | |
| commitments | | | |
--------------------------------------------------------------------------------
| Mortgages on company assets | 1 245 | 168 | 168 |
--------------------------------------------------------------------------------
| Mortgages on real estate | 8 801 | 4 017 | 4 017 |
--------------------------------------------------------------------------------
| Pledged shares | 42 567 | | |
--------------------------------------------------------------------------------
| On behalf of others | | | |
--------------------------------------------------------------------------------
| Guarantees | | 16 | 16 |
--------------------------------------------------------------------------------
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. In preparing this interim report, the same standards have
been used as when preparing the previous financial statements. The figures have
not been audited.
Seinäjoki 27 October 2008
ILKKA-YHTYMÄ OYJ
Board of Directors
Matti Korkiatupa
Managing Director
For more information:
Matti Korkiatupa, Managing Director, Ilkka-Yhtymä Oyj
Tel. +358 500-162 015
DISTRIBUTION
Helsinki Stock Exchange
The main media
www.ilkka-yhtyma.fi