OKMETIC OYJ STOCK EXCHANGE RELEASE 1 MARCH 2007 AT 9.50 A.M. 1(19)
OKMETIC'S FINANCIAL STATEMENTS 2006
Okmetic is a technology company that manufactures and carries out
further processing on high-quality silicon wafers for the sensor and
semiconductor industries. The company also sells technology. In 2006,
Okmetic's net sales amounted to 63.7 million euro (49.8 million euro).
Profit from continuing operations amounted to 6.9 million euro (-1.7
million euro). Profitability has developed positively and according to
plan.
YEAR IN BRIEF
- Annual net sales amounted to 63.7 million euro (49.8 million euro).
- The demand for Okmetic's silicon wafers has been strong.
- Sales to sensor customers developed as planned.
- In summer 2006, Okmetic sold its crystal growth technology to
NorSun, a Norwegian solar energy enterprise.
- The decommissioned production facility in Espoo was sold in
December.
- Profit from continuing operations amounted to 6.9 million euro (-1.7
million euro).
- Profit for the period amounted to 6.9 million euro (60,000 euro).
- In the last quarter of the year, profit before tax amounted to 1.8
million euro (0.2 million euro).
- Okmetic's equity ratio strengthened, amounting to 51.1 percent
(41.1%).
- The Board of Directors' proposal for the Annual General Meeting is
that the distributable earnings be retained in equity.
KEY FINANCIAL FIGURES
1,000 euro 1.10.- 1.10.- 1.1.- 1.1.- 1.1.-
31.12.06 31.12.05 31.12.06 31.12.05 31.12.04
Net sales 16,007 13,994 63,694 49,822 54,524
Operating profit/loss 3,339 810 9,877 580
-5,735
% of net sales 20.9 5.8 15.5 1.2 -10.5
Earnings per share from
continuing operations, euro 0.12 0.00 0.41 -0.10 -0.50
Net cash from operating
activities 4,863 3,430 17,945 3,125 3,655
Return on equity, % 18.6 -5.1 -22.2
Gearing, % 31.3 99.5 116.9
Equity ratio, % 51.1 41.1 36.9
Average number of personnel
during the period 360 359 446
PROJECTIONS FOR THE NEAR FUTURE
The sensor industry is growing at a faster rate than the semiconductor
industry. Over the last five years, the global sales of sensors have
increased at a rate of one and a half times that of micro circuits on
average. This trend is expected to continue in 2007. While the growth
in the semiconductor industry is expected to come close to ten percent
in 2007, SIA's estimates foresee growth of around 13 percent in the
sensor market. The majority of sensors that are fabricated on silicon
wafers are built using MEMS technology. The sensor types that are most
significant to Okmetic are pressure sensors and accelerometers.
2
Okmetic's goal on the sensor market is to focus on products and
services the demand for which is expected to grow at a considerably
faster rate than the demand for other products and services in
general.
For the semiconductor industry, 2007 is expected to represent the kind
of phase in the economic cycle where growth figures hover in the
region of long-term averages. The decline in the average sale price of
semiconductors is expected to be considerably less dramatic in 2007
than it was in 2006. In fact, the decline is even forecasted to stop
altogether, and consequently shipment volumes of components are
expected to increase at approximately the same rate as invoicing in
2007, in other words, around ten percent. (SIA, WSTS, Gartner, IC
Insights)
Demand for silicon wafers will grow in a similar way to the shipment
volumes of the customer industries. According to prevailing forecasts,
the total volume of wafer shipments will increase by about ten percent
in 2007. Demand for sensor wafers is expected to increase slightly
faster.
Overall, demand for Okmetic's products remained high throughout 2006.
Moreover, demand has stayed strong in the first months of 2007. Only a
moderate increase is expected in the price level of wafers, despite
the increase in the price of the raw material. The company estimates
that in the first six months of 2007, net sales and profitability will
amount to around the same as they did in the corresponding period of
the previous year.
BOARD OF DIRECTORS' PROPOSALS FOR THE ANNUAL GENERAL MEETING
The Board of Directors' proposals for the Annual General Meeting
scheduled for Thursday, 29 March 2007 are as follows:
The Board's proposal regarding its own powers to decide on new issues
and other share entitlements will be presented further down in the
document, under Authorisation of the Board of Directors to increase
share capital.
The Board of Directors proposes that the Annual General Meeting decide
to amend the Articles of Association of the company. The proposed
amendments are mainly due to the new Finnish Companies Act, which
entered into force on 1 September 2006, and are mainly of a technical
nature.
The main content of the proposed amendments is as follows:
- Section 3 concerning the maximum and minimum share capital of the
company is removed as redundant.
- The first paragraph of section 4 concerning the absence of par value
of the shares is removed as redundant.
- Section 5 concerning the record date procedure of the book-entry
system is removed as redundant.
- Section 8 concerning the right to sign in the name of the company is
amended to correspond to the wording of the Companies Act.
- Section 12 concerning the invitations to Annual General Meetings is
Amended to the effect that the invitation can be delivered no
earlier than three months prior to the Annual General Meeting
instead of the current two months.
3
- Section 13 concerning the Annual General Meeting of shareholders is
amended to correspond to the amended legislation.
- The numbering of the sections in the Articles of Association is
amended to correspond to the above.
STRATEGY AND SEGMENT REPORTING
The core of Okmetic's strategy is to produce solutions for the
technological needs of its chosen customers in the sensor and
semiconductor industries. The Group's primary segment reporting format
is based on a single business segment, since the risks and
profitability associated with the company's strategic product segments
do not differ considerably from each other.
The company's sales are assessed both on the basis of geographical
market areas and the three chosen customer segments: sensor customers,
semiconductor customers and technology customers. These are dealt with
as individual sectors in Okmetic's strategy, which is based on
specialisation.
In 2006, the company detailed its strategy especially in terms of
sensors, and set clear targets for sensor wafer activities for the
next few years. Okmetic is the world's leading supplier of sensor
wafers and aims to strengthen this position.
MARKETS
The electronics industry enjoyed better than average growth in 2006.
The sensor market grew by almost 20 percent. The volume of
semiconductor shipments also increased around 20 percent over the
year. The prices of semiconductors, however, fell as a result of
fierce competition, and dollar-denominated semiconductor sales only
grew by nine percent.
The volume of silicon wafer shipments increased significantly in all
product segments and in all market areas in 2006. In terms of surface
area, global growth in shipment volumes amounted to 20 percent in
comparison with the previous year.
SALES
Okmetic's 28-percent increase in net sales exceeded the overall growth
pace of the market, and the company increased its contribution to its
customers' wafer supply. Demand for polycrystalline silicon, the
principal raw material of silicon wafers, exceeded supply and its
price increased. Major wafer manufacturers focused more and more on
the large 200 mm and 300 mm wafers, which also contributed to
Okmetic's ability to increase its net sales in the 100 - 150 mm size
range, although the wafers' sale prices remained at the previous
year's level. The Group's net sales grew by 27.9 percent compared to
the previous year (decrease of 8.6%) and amounted to 63.7 million euro
(49.8 million euro).
Sales per customer segment
2006 (2005)
Sensors 34% (36%)
Semiconductors 59% (54%)
Technology 7% (10%)
4
Okmetic's performance in the sensor market developed according to
objectives. Sensor wafers are used in the automotive, aeronautical and
pharmaceutical industries, for example, as well as in consumer
applications.
Thanks to the positive economic trend in the semiconductor market,
semiconductor sales grew faster than sensor sales. The most typical
uses of semiconductor wafers include consumer electronics, information
technology, telecommunications and the automotive industry.
In 2006, Okmetic expanded its business into a new business segment in
accordance with the company's revised strategy. Technology sales
comprise the sales of both manufacturing technology and crystals.
Net sales per market area
2006 (2005)
North America 55% (46%)
Europe 28% (37%)
Asia 17% (17%)
PROFITABILITY
In 2006, Okmetic Group recorded a profit of 6.9 million euro (60,000
euro). Profit from the Group's continuing operations amounted to 6.9
million euro (-1.7 million euro). Earnings per share from continuing
operations were 0.41 euro (-0.10 euro).
The structural change that Okmetic underwent in 2004 and 2005 in order
to ensure long-term profitability combined with the associated
development measures contributed significantly to the company's good
profitability in 2006. The 0.4 million dollar compensation payment
awarded to a client towards the end of the year hurt the profits.
Okmetic Oyj's loan to Okmetic Inc, which has previously been recorded
as a net investment, has resulted in a 2.5 million euro loss due to
exchange differences. This loss has been recorded in the translation
differences under equity in the consolidated financial statements, and
the loan is now recorded as a normal liability. As a result, 1.1
million euro of the exchange loss, which corresponds to the loan
repayment, has been recorded under financial expenses in the
consolidated income statement for 2006. The remaining 1.4 million euro
of the exchange loss will be expensed according to the same principle
in the future, proportioned to the loan repayments.
FINANCING
The Group's financial situation is good. The net cash flow from
operations amounted to 17.9 million euro (3.1 million euro). The cash
flow was particularly boosted by good profitability and the level of
trade payables that has normalised since the end of the previous year,
as well as by the increase in prepayments received.
Due to the decline in the availability of polycrystalline silicon,
stocks fell and around 2.0 million euro was freed as a result. Half of
the amount was used to repay a loan that was taken out to finance the
polysilicon stocks. The previous 2.0 million euro loan, which matured
at the end of 2006, was paid off and a new 1.0 million euro loan was
taken out at the beginning of 2007.
5
In December, Okmetic sold its decommissioned production facility in
Espoo and some of the plant's old machinery. The sale price was 4.8
million euro and the sales profit of just over one million was entered
into the books for 2006.
In summer 2006, Okmetic sold its crystal growth technology to NorSun,
a Norwegian solar energy enterprise. The deal is worth around 15
million euro over a period of three years.
According to the agreement with NorSun AS, Okmetic will increase its
crystal growth capacity at the Vantaa plant. NorSun will fund the
additional production machinery, and Okmetic will pay for the building
work required for extending the plant. Okmetic will then begin to grow
crystals on behalf of NorSun.
The total investment in the Vantaa plant extension will amount to
around 10 million euro, and Okmetic's share of the investments will be
worth around 2.7 million euro. The project will require the input of
around 20 Okmetic employees. Construction work relating to the project
began in Vantaa in July. In 2006, investments associated with the
project amounted to 0.3 million euro. The companies aim to conclude
negotiations on the details of the agreement during March.
The remaining 1.4 million euro of the Group's gross investments of 1.7
million euro in 2006 related to normal replacement investments.
The Group revised its syndicated bank facility in November. According
to the loan agreement, Okmetic's credit facility was divided into a
long-term 10.0 million euro loan and a 6.0 million euro credit
facility. According to the terms and conditions of the new syndicated
loan, repayments of subordinated loans can resume once the new loan
has been reduced to four million euro.
During the year, Okmetic paid back a total of 12.4 million euro worth
of loans. Of this, normal loan repayments accounted for 4.9 million
euro (2005: 5.2 million euro). In addition, the company paid off the
aforementioned 2.0 million euro loan on polysilicon stocks and reduced
the credit facility by 5.5 million euro.
The company plans to pay the 3.1 million euro worth of interest on
subordinated loans, which is recorded under liabilities, during spring
2007. The company's goal is to get to a situation where repayments can
be made on subordinated loans as well.
At the end of the year, cash and cash equivalents amounted to 13.2
million euro (4.5 million euro). Return on equity amounted to 18.6
percent (-5.1%). The Group's equity ratio strengthened and amounted to
51.1 percent (41.1%). Shareholders' equity per share was 2.37 euro
(2.01 euro).
PRODUCT DEVELOPMENT
Product development accounted for 2.7 percent of Okmetic's net sales
(2.9%). Okmetic engaged in several strategic research projects with
clients, research institutes and other partners. Several new products
and new versions of existing products were introduced during the year.
6
The development of new SOI versions continued in sensor wafers, and
preparations for the customer industries' adoption of 200 mm wafers
got underway. Yields were improved and the consumption of raw
materials curbed through developing production machinery and internal
processes.
PERSONNEL
The level of expertise demonstrated by Okmetic's personnel is globally
competitive. Competent, multi-talented employees are a prerequisite
for achieving Okmetic's strategic goals and ensuring long-term
success. Systematic development of the personnel's competencies is an
inherent part of Okmetic's strategy. The company's personnel policy
also supports the pursuit of Okmetic's strategic objectives.
In 2006, the average number of personnel at Okmetic was 360 (2005: 359
and 2004: 446). The number of employees in production was increased to
meet the increase in sales volumes.
At the end of the year, 318 employees worked in Finland, 46 in the US
and one in Japan.
Thirty-two percent of the personnel were women and sixty-eight percent
were men. Clerical workers accounted for 34 percent of the personnel
and manual workers for 66 percent. The average age of the personnel
was 40 and the average length of employment was eight years.
Okmetic systematically develops the skills of all its personnel groups
as well as their operating procedures and occupational welfare. On
average, each employee spent 2.5 days in training. In 2006, the
company launched a training programme for the management, which will
continue in 2007. The first modules of the programme dealt with
strategic planning and finance.
Performance reviews are a regular exercise at Okmetic. A new concept
was adopted in 2006. Eighty-seven percent of the planned performance
reviews were conducted.
The remuneration of Okmetic's employees is based on the level of
difficulty of the tasks of each personnel group. Wages and salaries
amounted to 17.6 million euro (2005: 15.7 million euro and 2004: 19.9
million euro). In some cases, a collective labour agreement determines
the remuneration payable for specific positions. The Group's parent
company complies with the collective labour agreements of the
Technology Industries of Finland.
All employee groups at Okmetic are eligible for an incentive scheme.
Monthly targets are set for the manual workers' productivity, and the
resulting bonuses are awarded once a month. Clerical workers are
subject to a profit-sharing scheme, which is based on annual targets
relating to profitability, finance and development of the company's
operations. Operative targets are set individually from managerial
level upwards. The Group achieved all of its profitability and finance-
related targets in 2006. Operative targets were also met successfully.
7
The working atmosphere at Okmetic has remained at the level of the
previous year. A personnel survey showed that Okmetic's employees are
competent and motivated by their work, that they strive to ensure
Okmetic's good performance and that they work well together as a team.
The steering effect of the strategy and teamwork were also in line
with the goals. In 2005, Okmetic invested heavily in developing its
employees' competencies, which showed in the 2006 survey as an
improvement in working atmosphere. Seventy-two percent of Okmetic's
employees took part in the survey.
ENVIRONMENTAL ISSUES
At Okmetic, environmental issues are inherent in the very construction
of the plants. The company has been awarded the ISO9001:2000, TS16949
and ISO14001 quality and environmental certificates. The most notable
subcontractors and suppliers also have ISO14001 certification.
Okmetic has identified the use of silicon material and the consumption
of electricity and water as significant environmental issues. The
volumes of emissions and waste are not significant, and environmental
costs do not impinge on Okmetic's business. Thanks to development
projects carried out during 2006, Okmetic has managed to make its use
of silicon material more efficient, which has now created conditions
for continuing the so-far-successful sustainable development in
projects scheduled for 2007 as well.
Concentrating all of Okmetic's activities in Finland to Vantaa in 2005
helped to reduce the consumption of electricity and water in Finland,
and the plant consequently applied for a new environmental permit. The
permit was renewed in 2006.
Okmetic has identified the environmental risks relating to its
business and taken measures to control them. The company continuously
follows the evolution of environmental laws and requirements and
adjusts its business accordingly. Okmetic also abides by the new EU
chemicals legislation (REACH). No serious environmental issues
occurred at Okmetic's plants in 2006.
Acceptable emission limit values were exceeded on five occasions in
relation to waste water treatment. The excess values were only
slightly over the acceptable limits and corrective measures were
implemented expediently. Okmetic's plants are not subject to emission
trading.
Okmetic does not publish a separate environmental report in addition
to the Annual Report.
The key figures on environmental protection at the Vantaa plant in
2006 are as follows:
Energy consumption (GWh): electricity 25.2, district heating 3.2
Water consumption (tm3): water 480, waste water 450
Waste volumes (t): hazardous waste 220, landfill waste 65, recycled
waste 140.
8
BUSINESS RISKS
The Group's silicon wafer sales are targeted at the sensor and
semiconductor industries. The demand for semiconductor wafers is
sensitive to economic fluctuations and changes in the market situation
can be sudden and dramatic. The demand for sensor wafers is more
stable.
Okmetic is the market leader in sensor wafers and they account for a
significant proportion of the company's sales. Maintaining the market
leader position and continuing to develop sensor wafers in
collaboration with clients require larger than average investment from
Okmetic.
Okmetic's share of the global silicon wafer market is around one
percent and the market prices have a notable effect on the price
development of Okmetic's products. The majority of sales are conducted
in US dollars. Despite hedging, the company is vulnerable to exchange
rate fluctuations.
Demand for polycrystalline silicon, the raw material of silicon
wafers, exceeded supply in 2006, reducing its availability and
increasing its price. Okmetic expects availability to remain low and
the price to continue to rise. Moreover, the suppliers of polysilicon
are expected to start demanding prepayments more and more often.
Okmetic has secured access to the raw material through long-term
purchase agreements. The availability of polysilicon may become an
issue if the market situation changes, and it may be that the company
will have to tie up even more resources to secure its availability.
Great volumes of electricity are used in Okmetic's production. Despite
hedging, the company is also vulnerable to fluctuations in the price
of electricity. The production process also consumes a lot of water,
but its availability and price are not expected to cause a problem to
business.
At the end of the year, the Group's interest-bearing liabilities
amounted to 25.7 million euro (38.3 million euro). Unpaid subordinated
loans amounted to 6.6 million euro at the end of the year. The company
has been unable to make the capital and interest repayments of
subordinated loans in the absence of distributable funds. Loans from
financial institutions amounted to 19.1 million euro at the end of the
year (31.4 million euro). Loan repayments amounted to a total of 12.4
million euro in 2006 (5.2 million euro). Although the amount of debt
has gone down significantly, interest rate fluctuations still have an
impact on the company's financial performance.
Okmetic's production activities are capital-intensive, and also
largely labour-intensive. Some of the processes are highly technical
and the raw materials are subject to special permits. Any downtime in
production represents a significant risk to profitability. Okmetic
aims to protect itself against these risks by regularly inspecting its
production plants together with the relevant officials and its
insurance provider and by organising emergency drills to prepare for
accidents. The company has extensive, regularly revised accident
insurance cover.
9
SHARE PRICE DEVELOPMENT AND TRADING
A total of 16.5 million shares (5.9 million shares) were traded
between 1 January and 31 December 2006, representing 97.7 percent
(34.7%) of the share total of 16.9 million. The lowest quotation of
the year was 1.80 euro (1.65 euro) and the highest 3.75 euro per share
(3.14 euro per share), with the average being 3.11 euro (2.09 euro).
The closing quotation for the year was 3.69 euro (1.78 euro). At the
end of the year, the market value of the entire share capital amounted
to 62.3 million euro (30.1 million euro).
The high trading volume is largely due to the share dealings of major
shareholders who sold their holdings to several different buyers
simultaneously in spring 2006.
Okmetic is listed on the Nordic Small Cap list of the Helsinki Stock
Exchange under the trading code OKM1V. According to the Global
Industry Classification Standard (GICS), which the Helsinki Stock
Exchange uses, Okmetic Oyj is listed under the Information Technology
sector.
OWN SHARES
The company has not repurchased its own shares and the Board of
Directors has not been authorised to repurchase or convey the
company's own shares.
AUTHORISATION OF THE BOARD OF DIRECTORS TO INCREASE SHARE CAPITAL
On 28 February 2007 the Board of Directors decided to propose at the
Annual General Meeting to be held on Thursday, 29 March 2007 that the
Board of Directors be granted the authority to decide on new issues,
stock options and other share entitlements according to the first
paragraph of section 10 of the Finnish Companies Act as follows:
The aggregate number of shares issued on the basis of the
authorisation may not exceed 3,377,500 shares, which represents
approximately 20 percent of all the shares of the company.
The Board of Directors is authorised to decide on all the terms and
conditions concerning the issue of shares and other share
entitlements. The authorisation relates to the issuance of new shares.
Issuance of shares and other share entitlements can be carried out as
a directed issue.
The authorisation is effective until the following Annual General
Meeting of shareholders, however no later than until 29 March 2008.
The Board of Directors was granted similar authorisations at the
Annual General Meetings held on 24 March 2005 and 11 March 2006. The
Board had not taken advantage of its powers by 28 February 2007.
Convertible bonds
Okmetic has no convertible subordinated loans at the moment.
10
At an Extraordinary General Meeting held on 28 June 1999, the
shareholders decided to issue a convertible subordinated bond of
3,363,757.76 euro (then FIM 19,999,995.40) and offer it for
subscription to the shareholders registered in the company's Share
Register on 28 June 1999 so that the shareholders were entitled to
subscribe for one bond valued at FIM 8,605.85 for every 10.483219
shares owned. A total of 2,096 bonds were subscribed at 3,033,750.54
euro (then FIM 18,037,861.60). The conversion ratio was 1:8.60585
whereupon a maximum of 2,096 shares could be subscribed under the
bonds. Due to changes resulting from the increase in the total number
of shares and the adoption of the euro between 2000 and 2006 the
company's share capital has been allowed to increase by no more than
366,800 euro as a result of all bonds issued at the same time being
converted, which corresponds to about 3.28 percent of the company's
total share capital and votes. The number of shares would have been
able to increase by no more than 524,000 if all the bonds were
converted.
One of the shareholders used their right of conversion on 30 June
2001. The amount of the converted bond was 39,079.80 euro and the
number of shares involved was 6,750.
The right of conversion expired on 30 June 2006.
MANAGEMENT AND AUDITOR
In 2006, Okmetic's Board of Directors was made up of Mikko J. Aro as
the chairman, Karri Kaitue as the deputy chairman and Esa Lager, Pekka
Paasikivi and Pekka Salmi as members of the Board.
Antti Rasilo, M.Sc. (Tech.) has been acting as the President of
Okmetic Oyj since 1 January 2003. In addition to the President, the
Group's Executive Management Group comprises Timo Koljonen, Senior
Vice President, Production; Jaakko Montonen, Senior Vice President,
Product Development; Mikko Montonen, Senior Vice President, Sales and
Marketing; Esko Sipilä, Senior Vice President, Finance, IT and
Communications; Markku Tilli, Senior Vice President, Research; Markus
Virtanen, Vice President, Human Resources; and Anna-Riikka Vuorikari-
Antikainen, Senior Vice President, Sensor Business Development.
The company's auditors are PricewaterhouseCoopers Oy, Authorised
Public Accountants, with Markku Marjomaa, Authorised Public
Accountant, acting as the principal auditor.
THE BOARD OF DIRECTORS' PROPOSAL REGARDING MEASURES CONCERNING
RETAINED EARNINGS
According to the financial statements dated 31 December 2006,
Okmetic's distributable earnings amount to 5,734,093.35 euro. The
earnings consist of profit from the financial year 2006.
The Board of Directors' proposal for the Annual General Meeting is
that the distributable earnings be retained in equity.
Vantaa, 28 February 2007
Board of Directors
11
FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31, 2006 (unaudited)
These financial statements have been prepared in accordance with the
recognition and measurement principles of the International Financial
Reporting Standards (IFRS).
CONDENSED CONSOLIDATED INCOME STATEMENT
1,000 euro 1.10.- 1.10.- 1.1.- 1.1.-
31.12.06 31.12.05 31.12.06 31.12.05
Continuing operations
Net sales 16,007 13,994 63,694 49,822
Cost of sales -11,437 -11,540 -48,165 -43,906
Gross profit 4,570 2,453 15,529 5,915
Other income
and expenses -1,231 -1,643 -5,652 -5,335
Operating profit/loss 3,339 810 9,877 580
Financial income and
expenses -1,565 -566 -3,198 -2,141
Profit/loss
before taxes 1,774 242 6,679 -1,561
Income taxes 1) 206 -143 206 -143
Profit/loss for the
period from continuing
operations 1,980 101 6,885 -1,704
Profit/loss for the
period from discontinued
operations - - - 1,764
Profit/loss for
the period 1,980 101 6,885 60
Continuing operations:
Basic and diluted
earnings per share 0.12 0.00 0.41 -0.10
Discontinued operations:
Basic and diluted
earnings per share - 0.00 - 0.10
All operations:
Basic and diluted
earnings per share 0.12 0.00 0.41 0.00
1) The estimated income taxes for the period January 1 - December 31,
2006 include the tax loss carry-forwards of the Group companies.
12
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro December 31, December 31,
2006 2005
Assets
Non-current assets
Property, plant and
equipment 47,821 58,629
Available-for-sale
financial assets 1,502 2,214
Other receivables 123 238
Total non-current assets 49,446 61,081
Current assets
Inventories 7,915 7,946
Receivables 9,036 9,301
Cash and cash equivalents 13,184 4,452
Total current assets 30,135 21,699
Total assets 79,581 82,779
Equity and liabilities
Equity
Share capital 11,821 11,821
Other equity 28,259 22,165
Total equity 40,080 33,987
Liabilities
Non-current liabilities 21,294 16,390
Current liabilities 18,206 32,403
Total liabilities 39,501 48,793
Total equity and liabilities 79,581 82,779
13
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro January 1- January 1-
December 31, December 31,
2006 2005
Cash flows from operating activities:
Profit/loss before taxes 6,679 -1,561
Adjustments 10,259 10,001
Change in working capital 2,652 -3,325
Interest and dividends received 172 70
Interest paid and other
financial items -1,818 -2,060
Net cash from
operating activities 17,945 3,125
Cash flows from investing activities:
Proceeds from investing
activities 4,777 1,894
Capital expenditure -1,203 -660
Net cash used in
investing activities 3,574 1,234
Cash flows from financing activities:
Payments of long-term
borrowings -6,916 -4,681
Proceeds of long-term
borrowings 10,000 -
Payments of finance lease
liabilities -343 -322
Payments of short-term
borrowings -15,500 -500
Other financing cash flow - 20
Net cash used in
financing activities -12,759 -5,483
Increase (+) / decrease (-)
in cash and cash equivalents 8,760 -1,124
Exchange rate changes -27 61
14
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
1,000 euro
Share Share Trans- Fair Re- Total
capital premium lation value tained equity
differ- reserve earnings
ences
Balance at
Jan 1, 2005 11,821 71,266 -806 7 -49,580 32,709
Available-for-sale
financial assets:
Fair value gains/
losses recognised
directly in equity -346 -346
Taxes on fair value
gains/losses recognised
directly in equity -1 -1
Translation differences 1,565
1,565
Losses offset from previous
financial years -34,865 34,865 0
Net income recognised
directly in equity - -34,865 1,565 -348 34,865 1,218
Profit/loss for
the period 60 60
Total recognised
income and expenses - -34,865 1,565 -348 34,925 1,278
Balance at
Dec 31, 2005 11,821 36,401 759 -340 -14,655 33,987
Available-for-sale
financial assets:
Fair value gains/
losses recognised
directly in equity -691 -691
Transfer to
income statement -15 -15
Taxes on fair value
gains/losses recognised
directly in equity 4 4
Translation differences 595
595
Transfer to
income statement 505 505
Losses offset from previous
financial years -16,145 16,145 0
Net income recognised
directly in equity - -16,145 -90 -702 16,145 -792
Profit/loss for
the period 6,885 6,885
Total recognised
income and expenses - -16,145 -90 -702 23,031 6,094
Balance at
Dec 31, 2006 11,821 20,256 669 -1,042 8,376 40,081
15
COMMITMENTS AND CONTINGENCIES
1,000 euro December 31, December 31,
2006 2005
Loans secured by
mortgages or pledges 18,870 31,110
Mortgages 30,610 44,233
Other pledges 8,908 8,908
Off-balance sheet
lease commitments 322 420
Nominal values of derivative contracts
Currency forward agreements 3,355 2,530
Currency options, call - 810
Currency options, put - 810
Interest-rate swap contracts - 9,345
Electricity derivatives 2,580 882
Fair values of derivative contracts
Currency forward agreements 117 0
Currency options, call - 0
Currency options, put - -37
Interest rate swap contracts - -52
Electricity derivatives 80 328
The contract price of the derivatives has been used as the nominal
value of the underlying asset. Derivative contracts are held for
hedging.
16
KEY FIGURES SHOWING FINANCIAL PERFORMANCE
January 1- January 1-
December 31, December 31,
2006 2005
Net sales 63,694 49,822
Change in net sales compared
to the previous year's period, % 27.8 -8.6
Export and foreign operations
share of net sales, % 95.7 95.6
Operating profit/loss 9,877 580
% of net sales 15.5 1.2
Profit/loss before taxes
from continuing operations 6,679 -1,561
% of net sales 10.5 -3.1
Return on equity, % 18.6 -5.1
Return on investment, % 14.2 0.8
Non-interest bearing
liabilities 13,770 10,514
Gearing, % 31.3 99.5
Equity ratio, % 51.1 41.1
Capital expenditure 1,671 713
% of net sales 2.6 1.4
Depreciations 8,486 8,610
Research and development
expenditure 1) 1,731 1,424
% of net sales 2.7 2.9
Average personnel
during the period 360 359
Personnel at the end
of the period 365 338
1) Research and development expenditure has been presented in gross
figures and only long-term projects based on research program have
been taken into account.
17
KEY FIGURES PER SHARE
December 31, December 31,
2006 2005
Continuing operations:
Earnings per share
basic and diluted, euro 0.41 -0.10
All operations:
Earnings per share
basic and diluted, euro 0.41 0.00
Equity per share, euro 2.37 2.01
Dividend per share, euro 0.00 0.00
Dividend/earnings, % - -
Price/earnings (P/E) 9.3 501.0
Share price performance (Jan 1 -)
Average trading price 3.11 2.09
Lowest trading price 1.80 1.65
Highest trading price 3.75 3.14
Trading price at the end
of the period 3.69 1.78
Market capitalisation at the
end of the period, 1,000 euro 62,315 30,060
Trading volume (Jan 1 -)
Trading volume,
transactions 16,500,162 5,851,792
In relation to weighted
average number of shares, % 97.7 34.7
Trading volume, euro 51,312,696 12,220,981
The weighted average number
of shares during the period
under review adjusted by
the share issue 16,887,500 16,887,500
The number of shares at
the end of the period
adjusted by the share issue 16,887,500 16,887,500
Adjusted average number of
shares during the period
including the dilution due
to convertible loans
and options 16,887,500 16,887,500
Adjusted average number of
shares at the end of the
period including the dilution
due to convertible loans
and options 16,887,500 16,887,500
18
QUARTERLY KEY FIGURES FROM CONTINUING OPERATIONS 1)
10-12/2006 7-9/2006 4-6/2006 1-3/2006
Net sales 16,008 15,903 15,872 15,912
Compared to
previous quarter, % 0.7 0.2 -0.3 13.7
Operating profit/loss 3,339 2,690 1,142 2,706
% of the sales 20.9 16.9 7.2 17.0
Profit/loss before taxes 1,774 2,338 407 2,161
% of net sales 11.1 14.7 2.6 13.6
Net cash flow generated from:
Operating activities 4,863 5,694 3,431 3,957
Investing activities 3,996 -84 -329 -9
Financing activities -3,190 -2,968 -5,017 -1,584
Increase/decrease in cash
and cash equivalents 5,669 2,641 -1,915 2,364
Personnel at the end
of the period 365 368 379 337
10-12/2005 7-9/2005 4-6/2005 1-3/2005
Net sales 13,994 11,541 11,904 12,383
Compared to
previous quarter, % 21.3 -3.1 -3.9 -9.7
Operating profit/loss 810 1,372 -1,076 -526
% of net sales 5.8 11.9 -9.0 -4.2
Profit/loss before taxes 242 769 -1,624 -950
% of net sales 1.7 6.7 -13.6 -7.7
Net cash flow generated from:
Operating activities 3,430 -433 88 40
Investing activities -385 359 -182 1,439
Financing activities -1,725 332 -2,945 -1,144
Increase/decrease in cash
and cash equivalents 1,320 258 -3,039 335
Personnel at the end
of the period 338 338 387 356
1) Cash flows represent all operations.
All figures of the financial tables are rounded, and consequently the
sum of individual figures can deviate from the presented sum figure.
The figures are unaudited. In the written report, the figures in
parenthesis refer to the corresponding period in the previous year.
OKMETIC OYJ
Antti Rasilo
President
19
For further information, please contact:
President Antti Rasilo, Okmetic Oyj,
Tel. +358 9 5028 0232, email: antti.rasilo@okmetic.com
Senior Vice President, Finance Esko Sipilä, Okmetic Oyj,
Tel. +358 9 5028 0286, email: esko.sipila@okmetic.com
Distribution:
Helsinki exchanges
Principal media
IN BRIEF
Okmetic - take it higher
Okmetic is a technology company that manufactures and carries out
further processing on high-quality silicon wafers for the sensor and
semiconductor industries. The company also sells technology. Okmetic's
wafers are part of a further processing chain, which produced end
products that improve human interaction and quality of life.
Okmetic's products are based on innovative product development, an
efficient production process and a strong partner network. The company
offers its customers solutions that enhance their competitiveness and
profitability.
Okmetic has plants in Vantaa, Finland and in Allen, Texas in North
America. The company is quoted on the Helsinki Stock Exchange (Nordic
Small Cap list: OKM1V). More information about the company can be
found at www.okmetic.com.