Vuosikertomus Interim Report 2015...adjusted operating margin of the Group’s own operations was 10.1 (12.9) • Net financial items were EUR -65 thousand (EUR -876 thou-sand), of

Vuosikertomus 2015

Interim Report1 Jan.–30 Sep. 2016

2 | Interim Report 1 Jan.–30 Sep. 2016

JANUARY–SEPTEMBER 2016

• Net sales: EUR 29,386 thousand (EUR 30,460 thousand)• Operating profit: EUR 5,728 thousand (EUR 7,699 thousand)• Adjusted operating profit from the Group’s own operations

amounted to EUR 2,262 thousand (EUR 3,209 thousand)• Operating profit was 19.5% (25.3%) of net sales and the

adjusted operating margin of the Group’s own operations was 7.7 (10.5)

• Net financial items were EUR -1,556 thousand (EUR -775 thousand), of which the change in the market value of interest rate swaps accounted for EUR -1,162 thousand (EUR +13 thousand).

• Profit before tax: EUR 4,172 thousand (EUR 6,923 thousand)• Earnings per share: EUR 0.16 (EUR 0.24)• Net gearing was 62.4% (66.0%) and eguity ratio 54.8% (52.6%)

JULY–SEPTEMBER 2016

• Net sales: EUR 9,469 thousand (EUR 9,748 thousand)• Operating profit: EUR 2,504 thousand (EUR 3,658 thousand)• Adjusted operating profit from the Group’s own operations

amounted to EUR 958 thousand (EUR 1,261 thousand)• Operating profit was 26.4% (37.5%) of net sales and the

adjusted operating margin of the Group’s own operations was 10.1 (12.9)

• Net financial items were EUR -65 thousand (EUR -876 thou-sand), of which the change in the market value of interest rate swaps accounted for EUR -73 thousand (EUR -393 thousand).

• Profit before tax: EUR 2,439 thousand (EUR 2,782 thousand)• Earnings per share: EUR 0.09 (EUR 0.10)

KEY FIGURES

EUR 1,000 7–9/2016 7–9/2015 1–9/2016 1–9/2015 1–12/2015

Net sales 9 469 9 748 29 386 30 460 41 172

Operating profit 2 504 3 658 5 728 7 699 8 998

Profit before tax 2 439 2 782 4 172 6 923 4 479

Earnings per share, (EUR) 0.09 0.10 0.16 0.24 0.14

Operating profit includes the share of associated companies’ profit and other adjusted items:Share of associated companies’ profit 1 546 976 3 466 3 068 3 012

Capital gain on sale of the real estate company 1 421 1 421 1 421

Adjusted operating profit from 958 1 261 2 262 3 209 4 565 the Group’s own operations

NET SALES AND PROFIT PERFORMANCE

The Group’s consolidated net sales for January–September showed a 3.5% decline. Net sales came to EUR 29,386 thou-sand (EUR 30,460 thousand). External net sales from the pub-lishing business fell by 2.3%. Advertising revenues fell by 4.6% and content revenues fell by 1.0%. The decrease in net sales from the publishing business was mainly caused by the income from parliamentary election advertisements included in the comparative figure for 2015. External net sales from the print-ing business fell by 10.7%. Content income accounted for 48% of consolidated net sales, while advertising income and printing income represented 38% and 13%, respectively.

For Q3, net sales decreased by 2.9% and totalled EUR 9,469 thousand (EUR 9,748 thousand). External net sales from the

publishing business fell by 1.1%. Advertising revenues fell by 0.6% and content revenues fell by 1.5%. External net sales from the printing business fell by 13.4%. Content income accounted for 51% of consolidated net sales, while advertising income and printing income represented 36% and 13%, respectively.

Other operating income in January–September totalled EUR 160 thousand (EUR 1,722 thousand) and in July–September EUR 44 thousand (EUR 1,493 thousand). Other operating income for the third quarter of 2015 includes a capital gain of EUR 1,421 thou-sand from the sale of the property company’s shares.

Operating expenses for January–September amounted to EUR 27,291 thousand (EUR 27,555 thousand), down by 1.0% year on year. For July–September, operating expenses amounted to

Ilkka-Yhtymä Oyj́ s Interim Report 1 January–30 September 2016

| 3 Interim Report 1 Jan.–30 Sep. 2016

EUR 8,563 thousand (EUR 8,567 thousand). For January–Sep-tember, expenses arising from materials and services increased by 2.7%. Personnel expenses decreased by 1.6%. Other operat-ing costs decreased by 4.9%. Depreciation decreased by 12.0%.

The share of the associated companies’ result for January–Sep-tember was EUR 3,466 thousand (EUR 3,068 thousand). Con-solidated operating profit amounted to EUR 5,728 thousand (EUR 7,699 thousand), down by 25.6 per cent year-on-year. The Group’s operating margin was 19.5 per cent (25.3%). Adjusted operating profit from the Group’s own operations amounted to EUR 2,262 thousand (EUR 3,209 thousand), representing 7.7% (10.5%) of net sales. Operating profit from publishing fell by EUR 539 thousand, and operating profit from printing fell by EUR 383 thousand.

For July–September, the share of the associated companies’ re-sult was EUR 1,546 thousand (EUR 976 thousand). Consolidated operating profit amounted to EUR 2,504 thousand (EUR 3,658 thousand), down by 31.5 per cent year-on-year. The Group’s op-erating margin was 26.4% (37.5%) in July–September. Adjusted operating profit from the Group’s own operations amounted to EUR 958 thousand (EUR 1,261 thousand), representing 10.1% (12.9%) of net sales. For the third quarter, operating profit from publishing fell by EUR 163 thousand, and operating profit from printing fell by EUR 115 thousand.

Net financial items for January–September amounted to EUR -1,556 thousand (EUR -775 thousand). Interest expenses ex-cluding the fair value change in derivatives hedging them to-talled EUR 922 thousand (EUR 1,004 thousand). In order to hedge against interest rate risk, the company has transformed some of its floating-rate liabilities into fixed-rate liabilities, by means of interest rate swaps. Given that the Group does not ap-ply hedge accounting, unrealised changes in the market value of the interest rate swaps are recognised through profit or loss. In January–September 2016, the change in the market value of these interest rate swaps amounted to EUR -1,162 thousand (EUR +13 thousand). Net gain/loss on shares held for trading was EUR 388 thousand (EUR -44 thousand).

Net financial items for July–September amounted to EUR -65 thousand (EUR -876 thousand). For the third quarter, interest expenses excluding the fair value change in derivatives hedging them totalled EUR 314 thousand (EUR 341 thousand). In July–September 2016, the change in the market value of interest rate swaps was EUR -73 thousand (EUR -393 thousand). Net gain/loss on shares held for trading was EUR 306 thousand (EUR -156 thousand).

Profit before tax for January-September totalled EUR 4,172 thousand (EUR 6,923 thousand) and the Group’s profit for the period totalled EUR 4,051 thousand (EUR 6,276 thousand). The Group’s profit for the third quarter totalled EUR 2,258 thousand (EUR 2,510 thousand).

BALANCE SHEET AND FINANCING

The consolidated balance sheet total came to EUR 127,051 thousand (EUR 134,113 thousand), with EUR 67,378 thousand

(EUR 68,348 thousand) of equity. On the reporting date of 30 September 2016, the balance sheet value of the holding in the associated company Alma Media Corporation was EUR 102,211 thousand and the market value of the shares was EUR 108,419 thousand.

Interest-bearing liabilities totalled EUR 47,791 thousand (EUR 54,588 thousand). The equity ratio was 54.8 per cent (52.6%), and shareholders’ equity per share was EUR 2.63 (EUR 2.66). The decrease in financial assets for the period totalled EUR 2,179 thousand (the increase in financial assets in the corre-sponding period of the previous year EUR 2,964 thousand), with liquid assets at the end of the period totalling EUR 4,321 thou-sand (EUR 8,497 thousand).

Cash flow from operations for the period came to EUR 2,712 thousand (EUR 3,761 thousand). Cash flow from investments totalled EUR 2,065 thousand (EUR 4,102 thousand), including capital repayment from Alma Media Corporation in the amount of EUR 2,699 thousand (EUR 2,699 thousand). Cash flow from investments for the comparison period includes EUR 1,651 thousand of proceeds from the sale of the property company’s shares.

In June, Ilkka-Yhtymä concluded two new five-year loan agree-ments, preparing for the repayment of a EUR 20 million convert-ible bond that would mature in November. The loan agreements totalled EUR 25 million, and were meant to partially replace ex-isting loan agreements. After the reporting period, Ilkka-Yhtymä has drawn down the remainder of the loans, EUR 20 million in all, and repaid in full the EUR 20 million convertible bond that matured on 5 November 2016.

PERSONNEL

The Group had an average of 298 (303) employees during the period.

Ilkka-Yhtymä announced on 29 February 2016 that it would in-itiate negotiations at its printing house I-print Oy in accordance with the Act on Co-operation within Undertakings. The negoti-ations concerned the production personnel of I-print Oy’s news-paper printing press. The objective was to adjust the operations and the amount of personnel to the reduced volumes. The ne-gotiations affected the production personnel of the newspaper printing press, excluding service staff, 26 persons in all.

As a result of the negotiations, one person retired and three per-sons will be made redundant. Additionally, part of the personnel will be laid off for up to 38 working days per person and some full-time jobs will be turned into part-time jobs.

SHARE PERFORMANCE

The Series I shares of Ilkka-Yhtymä Oyj were listed on the Hel-sinki 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


Helsinki List, in the Consumer Services sector, the company’s market value being classified as Small Cap. The Series I shares are listed on the Pre List.

In January–September, 126,342 series-I shares of Ilkka-Yhtymä Oyj were traded, accounting for 2.9 per cent of the total number of series-I shares. The total value of the shares exchanged was EUR 333 thousand. In total, 2,496,375 series-II shares were traded, corresponding to 11.7 per cent of the total number of series II shares. The total value of the shares traded was EUR 5,652 thousand. The lowest price at which series-I shares of Ilk-ka-Yhtymä Oyj were traded during the period under review was EUR 2.20, and the highest per-share price was EUR 3.57. The lowest price at which series-II shares were traded was EUR 1.87 and the highest EUR 3.05. The market value of the share capi-tal at the closing rate for the reporting period was EUR 72,990 thousand.

RISKS AND RISK MANAGEMENT

In the current economic climate, the forecasting of both net sales and operating profit involve uncertainties. Ilkka-Yhtymä’s most significant short-term risks are related to the develop-ment of media advertising, in particular, as well as circulation and printing volumes, which affect the industry in general. The risks in the industry are due to its digitalisation and the contin-uing poor economic conditions. 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 An-nual Report 2015.

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, the risk of changes in market interest rates ap-plied to the loan portfolio and liquidity risk. In order to hedge against interest rate risk, the company has transformed some of its floating-rate liabilities to a fixed rate, by means of interest rate swaps. Given that the Group does not apply hedge account-ing, changes in the market value of the interest rate swap are recognised through profit and loss. Other financial risks are dis-cussed in more detail in the 2015 Annual Report.

CORPORATE GOVERNANCE AND THE ANNUAL GENERAL MEETING

On 20 April 2016, the Annual General Meeting (AGM) of Ilk-ka-Yhtymä Oyj approved the financial statements, discharged the members of the Supervisory Board and the Board of Direc-tors and the Managing Director from liability and decided that a per-share dividend of EUR 0.10 be paid for the year 2015.

The number of members on the Supervisory Board for 2016 was confirmed to be 23. Of the Supervisory Board members whose term had come to an end, the following were re-elected for the term ending in 2020: Vesa-Pekka Kangaskorpi, Kimmo Simberg and Jyrki Viitala. Raimo Puustinen, Managing Director, Pohjois-Karjalan Kirjapaino Oyj, was elected as a new member for the term ending in 2020.

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 re-ceive 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 do-nation 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 9 May 2016, the Supervisory Board re-elected Timo Aukia, 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. Minna Sillanpää was elected vice-chairman of the Supervisory Board.

At its membership meeting, the Board of Directors re-elected Timo Aukia as its chairman, while Esa Lager will continue as vice-chairman. The Board of Directors of Ilkka-Yhtymä Oyj now has the following membership: chairman Timo Aukia, vice-chair-man Esa Lager, members Markku Hautanen, Sari Mutka, Tapio Savola, and Riitta Viitala.

EVENTS AFTER THE REPORTING PERIOD

After the reporting period, Ilkka-Yhtymä has repaid in full the EUR 20 million convertible bond that matured on 5 November 2016.

OUTLOOK FOR 2016

In the current uncertain economic climate and competitive en-vironment, forecasting net sales in the newspaper business involves still major uncertainties. The overall media advertising market in Finland is estimated to remain roughly unchanged from the previous year, while circulation income is predicted to fall slightly. In the beginning of the year, printing business volumes decreased and delivery costs rose more than expected.

The net sales of Ilkka-Yhtymä Group are estimated to decline from the 2015 level. Adjusted operating profit from the Group’s own operations is expected to decline clearly from the 2015 level.

The associated company Alma Media Corporation (Group owner-ship 27.30%) will have a significant impact on Group operating profit and profit.


DRAFTING PRINCIPLES

Ilkka-Yhtymä Group’s interim report was prepared in accordance with the requirements of the IAS 34 Interim Financial Reporting standard.

The interim report has been prepared according to the same prin-ciples as the 2015 financial statements. Annual improvements to IFRS and IFRIC interpretations (Annual Improvements 2012–2014) that become effective in 2016 have also been complied with. These changes have not affected the reported figures.

Ilkka-Yhtymä has adopted the Guidelines on Alternative Per-formance Measures published by the European Securities and Markets Authority (ESMA). In addition to operating profit, Ilk-ka-Yhtymä reports adjusted operating profit from the Group’s own operations, with a view to describing the development of the Group’s actual operations and improving the comparability of the operating profit indicator between periods. The indicator in question is essentially the same as the previously used indica-tor Operating profit from the Group’s own operations, excluding non-recurring items and the share of Alma Media’s and other as-sociated companies’ results. Adjusted operating profit from the Group’s own operations is determined by adjusting the operating

profit shown on the income statement with the share of the as-sociated companies’ profit and other adjusted items. Examples of these other adjusted items include capital gains and losses from the sale of operations or assets, impairment, the costs of discontinuing significant operations and the costs arising from the reorganisation of operations. Items that have affected the adjusted operating profit from the Group’s own operations in the periods under review and comparative periods are listed in the table of key figures of the interim report.

The company also publishes certain other commonly used key figures, which can mainly be derived from the income state-ment and balance sheet. In the view of the company, the key figures presented clarify the picture of the company’s results and financial position given on the income statement and bal-ance sheet. The principles and formulae for the calculation of the indicators, presented on page 63 of the 2015 Annual Re-port, remain unchanged.

All the figures in the interim report are rounded, so the sum of separate figures may differ from that presented in the report.

The figures in the interim report have been presented unau-dited.

CONSOLIDATED INCOME STATEMENT

EUR 1,000 7–9/2016 7–9/2015 Change 1–9/2016 1–9/2015 Change 1–12/2015

NET SALES 9 469 9 748 -3 % 29 386 30 460 -4 % 41 172

Change in inventories of finished and unfinished products 8 7 10 % 8 3 134 % 1

Other operating income 44 1 493 -97 % 160 1 722 -91 % 1 763

Materials and services -3 331 -3 269 2 % -10 298 -10 027 3 % -13 418

Employee benefits -3 700 -3 704 0 % -12 208 -12 402 -2 % -16 548

Depreciation -354 -409 -14 % -1 093 -1 243 -12 % -1 653

Other operating costs -1 178 -1 184 0 % -3 692 -3 884 -5 % -5 331

Share of associated companies’ profit 1 546 976 58 % 3 466 3 068 13 % 3 012

OPERATING PROFIT/ LOSS 2 504 3 658 -32 % 5 728 7 699 -26 % 8 998

Financial income and expenses *) -65 -876 93 % -1 556 -775 -101 % -4 519

PROFIT/ LOSS BEFORE TAX 2 439 2 782 -12 % 4 172 6 923 -40 % 4 479

Income tax -181 -272 -33 % -120 -647 -81 % -872

PROFIT/ LOSS FOR THE PERIOD UNDER REVIEW 2 258 2 510 -10 % 4 051 6 276 -35 % 3 607

Earnings per share, undiluted (EUR) **) 0.09 0.10 -10 % 0.16 0.24 -35 % 0.14

The undiluted share average (to the nearest thousand) **) 25 665 25 665 25 665 25 665 25 665

*) As a result of the dilution of ownership in the associated company Alma Media Corporation, a loss of EUR 3,533 thousand was recorded in the financial expenses for Q4/2015.

**) There are no factor diluting the figure.

Summary of financial statements and notes


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


PROFIT/ LOSS FOR THE PERIOD UNDER REVIEW 2 258 2 510 -10 % 4 051 6 276 -35 % 3 607

Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Available-for-sale assets

Measured at fair value -2 -1 -200 % 3 -100 % 4Transferred to the income statement -18 -18 -8 -122 % -8

Share of associated companies’ other comprehensive income -25 -57 57 % -128 162 -179 % 517Income tax related to components of other comprehensive income 4 4 3 13 % 3Other comprehensive income, net of tax -41 -57 29 % -143 160 -189 % 516

Total comprehensive income for the period 2 217 2 452 -10 % 3 909 6 436 -39 % 4 123

SEGMENT INFORMATION


NET SALES BY SEGMENTPublishingExternal 8 254 8 345 -1 % 25 487 26 092 -2 % 35 123Inter-segments 20 18 10 % 75 72 4 % 95Publishing total 8 274 8 363 -1 % 25 562 26 164 2 % 35 218

PrintingExternal 1 215 1 403 -13 % 3 899 4 368 -11 % 6 048Inter-segments 1 418 1 538 -8 % 4 331 4 688 -8 % 6 273Printing total 2 633 2 941 -10 % 8 230 9 056 -9 % 12 321

Non-allocatedInter-segments 539 545 -1 % 1 594 1 645 -3 % 2 199Non-allocated total 539 545 -1 % 1 594 1 645 -3 % 2 200

Elimination -1 977 -2 101 -6 % -6 000 -6 405 -6 % -8 567Group net sales total 9 469 9 748 -3 % 29 386 30 460 -4 % 41 172


OPERATING PROFIT/ LOSS BY SEGMENTPublishing 565 728 -22 % 1 740 2 278 -24 % 3 238Printing 328 443 -26 % 692 1 075 -36 % 1 543Associated companies 1 546 976 58 % 3 466 3 068 13 % 3 012Non-allocated 65 1 510 -96 % -170 1 277 -113 % 1 205Group operating profit/ loss total 2 504 3 658 -32 % 5 728 7 699 -26 % 8 998

EUR 1,000 9/2016 9/2015 Change 12/2015

ASSETS BY SEGMENTPublishing 11 659 12 134 -4 % 9 882Printing 8 543 9 757 -12 % 9 257Non-allocated 106 848 112 222 -5 % 108 042Group assets total 127 051 134 113 -5 % 127 181


CONSOLIDATED BALANCE SHEET

EUR 1,000 9/2016 9/2015 Change 12/2015

ASSETS

NON-CURRENT ASSETS

Intangible rights 645 674 -4 % 674

Goodwill 314 314 0 % 314

Investment properties 63 63 0 % 63

Property, plant and equipment 8 455 9 052 -7 % 8 825

Shares in associated companies 103 240 105 826 -2 % 102 608

Available-for-sale assets 2 969 2 921 2 % 2 922

Non-current trade and other receivables 567 567 0 % 567

Other tangible assets 214 214 0 % 214

Deferred tax asset 98

Non-current assets 116 566 119 632 -3 % 116 188

CURRENT ASSETS

Inventories 623 590 6 % 614

Trade and other receivables 3 620 3 693 -2 % 2 787

Income tax assets 518 706 -27 % 36

Financial assets at fair value through profit or loss 1 402 996 41 % 1 057

Cash and cash equivalents 4 321 8 497 -49 % 6 500

Current assets 10 484 14 482 -28 % 10 993

ASSETS 127 051 134 113 -5 % 127 181

SHAREHOLDERS’ EQUITY AND LIABILITIES

SHAREHOLDER’S EQUITY

Share capital 6 416 6 416 0 % 6 416

Invested unrestricted equity fund

and other reserves 48 676 48 690 0 % 48 691

Retained earnings 12 285 13 242 -7 % 10 928

Shareholder’s equity 67 378 68 348 -1 % 66 035

NON-CURRENT LIABILITIES

Deferred tax liability 208 -100 % 194

Non-current interest-bearing liabilities 27 532 54 579 -50 % 31 943

Non-current interest-free liabilities 61 75 -18 % 61

Non-current liabilities 27 593 54 861 -50 % 32 199

CURRENT LIABILITIES

Current interest-bearing liabilities 20 259 9 232 015 % 20 286

Accounts payable and other payable 11 401 10 222 12 % 8 309

Income tax liability 420 672 -37 % 352

Current liabilities 32 081 10 904 194 % 28 947

SHAREHOLDERS’ EQUITY AND LIABILITIES 127 051 134 113 -5 % 127 181


CONSOLIDATED CASH FLOW STATEMENT

EUR 1,000 1–9/2016 1–9/2015 1–12/ 2015

CASH FLOW FROM OPERATIONS

Profit/ loss for the period under review 4 051 6 276 3 607

Adjustments -733 -1 839 2 592

Change in working capital 783 853 62

Cash flow from operations before finance and taxes 4 101 5 289 6 262

Interest paid -574 -601 -1 255

Interest received 41 40 50

Dividends received 50 66 66

Other financial items -84 -33 -33

Direct taxes paid -823 -1 000 -889

Cash flow from operations 2 712 3 761 4 201

CASH FLOW FROM INVESTMENTS

Investments in tangible and intangible assets, net -690 -406 -590

Disposal of subsidiaries 1 651 1 748

Capital repayment received 2 699 2 699 2 699

Other investments -66

Proceeds from sale of other investments 33 67 68

Dividends received from investments 89 92 95

Cash flow from investments 2 065 4 102 4 019

Cash flow before financing items 4 777 7 864 8 220

CASH FLOW FROM FINANCING

Change in current loans -2 353 -2 353

Change in non-current loans -4 412 -2 353

Dividends paid and other profit distribution -2 545 -2 547 -2 547

Cash flow from financing -6 957 -4 900 -7 253

Increase (+) or decrease (-) in financial assets -2 179 2 964 967

LIQUID ASSETS AT THE BEGINNING OF THE FINANCIAL PERIOD 6 500 5 534 5 534

LIQUID ASSETS AT THE END OF THE FINANCIAL PERIOD 4 321 8 497 6 500

GROUP KEY FIGURES

9/2016 9/2015 12/2015

Earnings/share (EUR) 0.16 0.24 0.14

Shareholders’ equity/share (EUR) 2.63 2.66 2.57

Average number of personnel 298 303 299

Investments (EUR 1,000) *) 760 383 584

Interest-bearing debt (EUR 1,000) 47 791 54 588 52 229

Equity ratio, % 54.8 52.6 52.9

Net gearing, % 62.4 66.0 67.6

Average number of shares during the financial period 25 665 208 25 665 208 25 665 208

Number of shares at the end on the financial period 25 665 208 25 665 208 25 665 208

*) Includes investments in tangible and intangible assets and shares in associated companies and in available-for-sale financial assets.Taxes included in the income statement are taxes corresponding to the profit for the period under review.


STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY

EUR 1,000

CHANGE IN SHAREHOLDERS’ EQUITY 1–9/2015

Shareholders’ equity 1.1. 6 416 194 48 498 24 9 371 64 503

Comprehensive income for the period -2 6 438 6 436

Dividend distribution -2 567 -2 567

Changes in ownership interests in subsidiaries -24 -24

SHAREHOLDERS’ EQUITY 9/2015 6 416 192 48 498 13 242 68 348

EUR 1,000

CHANGE IN SHAREHOLDERS’ EQUITY 1–9/2016

Shareholders’ equity 1.1. 6 416 193 48 498 10 928 66 035

Comprehensive income for the period -15 3 924 3 909

Dividend distribution -2 567 -2 567

SHAREHOLDERS’ EQUITY 9/2016 6 416 178 48 498 12 285 67 378

GROUP CONTINGENT LIABILITIES

EUR 1,000 9/2016 9/2015 12/2015

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 101 019 47 369 55 081

CONTINGENT LIABILITIES ON BEHALF OF ASSOCIATED COMPANY

Guarantees 3 961 3 961 3 961

CHANGES IN PROPERTY, PLANT AND EQUIPMENT

EUR 1,000 1–9/2016 1–9/2015 Change 1–12/2015

Carrying amount at the beginning of the financial period 8 825 10 230 -14 % 10 230

Increase 577 285 103 % 410

Decrease -261 -100 % -261

Depreciation for the financial period -947 -1 055 -10 % -1 408

Transfers between items -147 100 % -147

Carrying amount at the end of the financial period 8 455 9 052 -7 % 8 825

Sharecapital

Fairvalue

reserve


Retainedearnings Total

Total

Otherreserves

Sharecapital

Fairvalue

reserve


Otherreserves


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 1–9/2016 1–9/2015 1–12/2015

SALES OF GOODS AND SERVICES

To associated companies 261 187 258

To other related parties 518 625 921

PURCHASES OF GOODS AND SERVICES

From associated companies 166 194 256

From other related parties 5 2 37

NON-CURRENT LOAN RECEIVABLES FROM ASSOCIATED COMPANIES 567 567 567

TRADE AND OTHER RECEIVABLES

From associated companies 77 35 68

From other related parties 57 69 75

ACCOUNTS PAYABLE

To associated companies 32 21 24

Transactions with related parties are conducted at fair market prices.

EMPLOYEE BENEFITS TO MANAGEMENT

EUR 1,000 1–9/2016 1–9/2015 1–12/2015

Salaries and other short-term employee benefits 907 751 1 026

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 9/2016 Level 1 Level 2 Level 3

Assets measured at fair value

Financial assets at fair value through profit or loss 1 402 1 402

Available-for-sale financial assets 1 549 1 549

Total 2 951 1 402 1 549

Liabilities measured at fair value

Interest rate swaps 2 968 2 968

Total 2 968 2 968

Fair value at end of period

EUR 1,000 9/2015 Level 1 Level 2 Level 3

Assets measured at fair value

Financial assets at fair value through profit or loss 996 996

Available-for-sale financial assets 1 501 1 501

Total 2 497 996 1 501

Liabilities measured at fair value

Interest rate swaps 1 791 1 791

Total 1 791 1 791

Available-for-sale assets also include EUR 1,420 thousand for unlisted shares (EUR 1,420 thousand in 9/2015), 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 KorkiatupaManaging Director

Koulukatu 10, P.O. Box 60, FIN-60101 Seinäjoki | Tel. +358 6 247 7100 | www.ilkka-yhtyma.fi

Vuosikertomus Interim Report 2015...adjusted operating margin of the Group’s own operations was 10.1 (12.9) • Net financial items were EUR -65 thousand (EUR -876 thou-sand), of

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