OKMETIC OYJ INTERIM REPORT 29 APRIL 2008 12.00 P.M. 1(17)
OKMETIC INTERIM REPORT 1.1. - 31.3.2008
Okmetic is a technology company that supplies customised silicon wafers for the
sensor and semiconductor industries and sells its technological expertise.
During the period under review, the company's net sales amounted to 17.0 million
euro (17.3 million euro). Profit for the period was 1.6 million euro (2.4
million euro).
REVIEW IN BRIEF
- Net sales amounted to 17.0 million euro (17.3 million euro).
- Profit for the period amounted to 1.6 million euro (2.4 million euro).
- The equity ratio strengthened, amounting to 57.4 percent (51.2%).
- US dollar exchange rate developments and the cost of the main raw
material
influenced the result and financial estimates.
- Periodic revenue from technology sales caused significant variations
in the
interim results.
- Net sales for the first half of the year 2008 are expected to amount
to
around 34 million euro and operating profit is expected to account
for around
12 percent of net sales.
KEY FIGURES
--------------------------------------------------------------------------------
| 1,000 euro | 1.1.- | 1.1.- | 1.1.- | 1.1.- | 1.1.- |
| | 31.3.08 | 31.3.07 | 31.12.07 | 31.12.06 | 31.12.05 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 17,034 | 17,322 | 64,652 | 63,694 | 49,822 |
--------------------------------------------------------------------------------
| Operating | 2,542 | 2,677 | 7,121 | 9,877 | 580 |
| profit | | | | | |
--------------------------------------------------------------------------------
| % of net | 14.9 | 15.5 | 11.0 | 15.5 | 1.2 |
| sales | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.10 | 0.14 | 0.31 | 0.41 | -0.10 |
| share, euro | | | | | |
--------------------------------------------------------------------------------
| Net cash from | 2,281 | 1,628 | 8,305 | 17,945 | 3,125 |
| operating | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| Return on | 14.2 | 23.5 | 12.4 | 18.6 | -5.1 |
| equity, % | | | | | |
--------------------------------------------------------------------------------
| Net gearing | 15.2 | 30.5 | 19.6 | 31.3 | 99.5 |
| ratio, % | | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 57.4 | 51.2 | 55.3 | 51.1 | 41.1 |
--------------------------------------------------------------------------------
| Average number | 355 | 360 | 362 | 360 | 359 |
| of personnel | | | | | |
| during the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
PROJECTIONS FOR THE NEAR FUTURE
Okmetic supplies sensor wafers for a variety of applications. Demand for sensors
is expected to grow by 12-16 percent this year (Yole, IC Insights). In addition
to the traditional sensor segments, new micro-electromechanical sensor products
are being introduced onto the market, the demand for which is anticipated to
exceed the standard growth level of the industry.
Market growth within the semiconductor industry is expected to remain below ten
percent this year (SIA, WSTS, Gartner, IC Insights).
According to the prevailing industry forecasts, the total volume of silicon
wafer supplies is expected to grow by nearly ten percent in 2008. The growth
will be most prominent in wafers with a 300 mm diameter. Market growth in
relation to smaller wafer sizes is expected to be low and to be realised only in
the latter part of the year. Demand for sensor wafers is expected to increase
(IC Insights).
Net sales for the first half of 2008 are expected to amount to around 34 million
euro and operating profit is expected to account for around 12 percent of net
sales.
MARKETS
Growth within the sensor industry remained steady in the early part of the year.
Demand for micro-mechanical sensors increased reasonably well. Semiconductor
sales were comparable to the corresponding period in the previous year (SIA,
WSTS).
The growth in the demand for silicon wafers has mostly affected large, 300 mm
wafer sizes. Demand for smaller, 100-200 mm semiconductor wafers, which are
important for Okmetic, fell slightly below the levels of the corresponding
period in the previous year, according to the prevailing market forecasts.
SALES
The group's net sales amounted to 17.0 million euro (17.3 million euro).
Net sales per customer segment
--------------------------------------------------------------------------------
| | 2008 | (2007) |
| | from beginning of year | (on average) |
--------------------------------------------------------------------------------
| Sensors | 34% | (34%) |
--------------------------------------------------------------------------------
| Semiconductors | 43% | (56%) |
--------------------------------------------------------------------------------
| Technology | 23% | (10%) |
--------------------------------------------------------------------------------
Technology sales, in addition to our own expert manufacturing services, also
include crystal sales. The fact that revenues from manufacturing expertise sales
are recorded in periodic instalments, and also the fluctuations with respect to
the volume of crystal sales, cause clear variations in the percentage of net
sales per customer group and market area during each quarter.
Sales by Okmetic to the sensor market increased and developed on target. Sensor
wafers are used in the automotive, aviation and medical industries, for example,
as well as in consumer applications. As a sensor wafer supplier, Okmetic is the
global market leader.
Sales of semiconductor wafers decreased slightly. Typically, semiconductor
wafers are used in consumer electronics, telecommunications and automotive
applications. Demand for semiconductor wafers experienced a decline in the early
part of the year. The position is expected to improve in the latter half of the
year.
Net sales per market area
--------------------------------------------------------------------------------
| | 2008 | (2007) |
| | from beginning of year | (on average) |
--------------------------------------------------------------------------------
| North America | 40% | (48 %) |
--------------------------------------------------------------------------------
| Europe | 42% | (32 %) |
--------------------------------------------------------------------------------
| Asia | 18% | (20 %) |
--------------------------------------------------------------------------------
Fluctuations in the principal invoice currency of each operating area had a
significant effect on the various market area segments.
PROFIT
Okmetic group's profit for the period was 1.6 million euro (2.4 million euro).
Earnings per share amounted to 0.10 euro (0.14 euro).
The fact that revenues from technology sales are recorded in periodic
instalments caused significant variations in the interim results.
FINANCE AND INVESTMENT
The group's financial situation is good. Its net cash flow from operating
activities amounted to 2.3 million euro (1.6 million euro). The value added tax
liabilities and receivables resulting from an internal business acquisition that
was concluded in Finland at the turn of the year have been paid.
The group's investment costs amounted to 0.3 million euro.
At the end of the financial period, cash and cash equivalents amounted to 15.1
million euro (13.8 million euro). Return on equity amounted to 14.2 percent
(23.5%). The group's equity ratio strengthened, amounting to 57.4 percent
(51.2%). Shareholders' equity per share amounted to 2.76 euro (2.49 euro).
PRODUCT DEVELOPMENT
Product development accounted for 3.0 percent (2.7%) of the net sales of
Okmetic.
PERSONNEL
The number of employees at Okmetic averaged 355 (360) of whom, at the end of the
financial period, 310 were located in Finland, 46 in the USA and three in Japan.
OPERATIONAL RISKS
The majority of Okmetic's sales are concluded in US dollars, and a relatively
small proportion in Japanese yen. The US dollar has fallen significantly since
the start of the year. Despite hedging, the company remains vulnerable to
exchange rate fluctuations.
The demand for polycrystalline silicon, the principal raw material of silicon
wafers, has exceeded supply since 2006, thereby reducing its availability and
increasing the cost. The company anticipates that, throughout 2008, this
availability will continue at a low level, and the price will remain high. The
company has secured access to the raw material through long-term purchase
agreements.
The semiconductor market operates in cycles. This cyclical effect is currently
at a low, and the demand for semiconductors is reduced. Demand is anticipated to
increase towards the end of the year.
Technology sales, due to the sales structure, vary significantly during
different periods.
SHARE PRICE DEVELOPMENT AND TRADING
A total of 2.2 million shares (3.2 million shares) were traded in the period
1.1. - 31.3.2008, representing 12.8 percent (18.9%) of the total shares of 16.9
million. The lowest quotation of the period was 2.20 euro (3.34 euro) and the
highest was 3.14 euro per share (4.38 euro), with an average of 2.63 euro (3.88
euro). The closing quotation for the period was 2.48 euro (3.85 euro). The total
market value of the share capital amounted to 41.9 million euro (65.0 million
euro) at the end of the financial period.
OWN SHARES
The company has not redeemed its own shares and the board of directors has not
been authorised to redeem or surrender the company's own shares.
OPTIONS
The company has not issued any option rights.
AUTHORITY OF THE BOARD OF DIRECTORS TO INCREASE SHARE CAPITAL
The annual general meeting held on 3.4.2008 authorised the board of directors to
decide on share issue, share option rights or any other share entitlement
pursuant to paragraph 1(10) of the Finnish Companies Act. 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 the total number of shares
of the company. The board of directors is authorised to decide upon any terms
and conditions concerning the issue of shares or share options or any other
share entitlement. The issue of shares or option rights or any other share
entitlement may be effected as a directed issue. The authorisation will be
effective until the following annual general meeting of shareholders.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING OF OKMETIC OYJ AND ORGANISATION OF THE
BOARD OF DIRECTORS
The annual general meeting of Okmetic Oyj, held on 3.4.2008, ratified the
corporate accounts for 2007, and indemnified the board of directors and the
managing director of the company in that respect. It was decided to distribute a
dividend of 0.10 euro per share for the year 2007. The dividend was paid on
Thursday, 17.4.2008. Further, the annual general meeting carried the proposal by
the board of directors for the share issue authority to be granted to the board
of directors.
The board of directors will consist of five members. The following were
re-elected as board members until the end of the next annual general meeting:
Mikko J. Aro, Karri Kaitue and Pekka Salmi. The managing director of Outotec
Oyj, Tapani Järvinen, and the managing director of Tecnomen Oyj, Jarmo Niemi,
were appointed as new members. At the organisational meeting held immediately
following the annual general meeting, the board of directors appointed Mikko J.
Aro as chairman, and Karri Kaitue as deputy chairman. At the annual general
meeting, the current annual fees payable to the board members for their
appointment period were confirmed as follows: chairman 34,800 euro, deputy
chairman 26,100 euro and other members 17,400 euro.
Authorised Public Accountants PricewaterhouseCoopers Oy were appointed as
auditors, with the principal auditor being Markku Marjomaa, Authorised Public
Accountant. Payment to auditors will be effected in accordance with their
invoice.
The proposal by the board of directors to authorise the board of directors to
increase share capital as set out above was ratified at the annual general
meeting.
Vantaa, 29.4.2008
Board of directors
FINANCIAL STATEMENTS 1.1. - 31.3.2008 (unaudited)
ACCOUNTING PRINCIPLES
These interim financial statements have been prepared in accordance with the IAS
34 standard.
In preparing these interim financial statements, Okmetic has followed the same
accounting policies as in the financial statements for 2007 except for the
effect of changes required by the adoption of the following new standards,
interpretations or revisions to published standards adopted on 1 January 2008:
- IFRIC 11, IFRS 2 - Group and treasury share transactions' provides guidance on
whether share-based transactions involving treasury shares or involving group
entities should be accounted for as equity settled or cash-settled share-based
payment transactions in the stand-alone accounts of the parent and group
companies. This interpretation does not have any impact on the group's financial
statements.
CONDENSED CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| 1,000 euro | 1.1.- | 1.1.- 31.3.07 | 1.1.- |
| | 31.3.08 | | 31.12.07 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 17,034 | 17,322 | 64,652 |
--------------------------------------------------------------------------------
| Cost of sales | -12,571 | -12,658 | -50,967 |
--------------------------------------------------------------------------------
| Gross profit | 4,462 | 4,665 | 13,685 |
--------------------------------------------------------------------------------
| Other income and expenses | -1,920 | -1,988 | -6,564 |
--------------------------------------------------------------------------------
| Operating profit | 2,542 | 2,677 | 7,121 |
--------------------------------------------------------------------------------
| Financial income and expenses | -908 | -351 | -1,906 |
--------------------------------------------------------------------------------
| Profit before taxes | 1,634 | 2,326 | 5,215 |
--------------------------------------------------------------------------------
| Income taxes 1) | 5 | 90 | 90 |
--------------------------------------------------------------------------------
| Profit for the period | 1,640 | 2,416 | 5,305 |
--------------------------------------------------------------------------------
| Basic and diluted earnings per | 0.10 | 0.14 | 0.31 |
| share | | | |
--------------------------------------------------------------------------------
In addition to deferred tax assets and liabilities, the estimated income taxes
for the period of 2008 include the tax loss carry-forwards of the group
companies.
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| 1,000 euro | March 31, | March 31, | December 31, |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 41,396 | 47,927 | 43,355 |
--------------------------------------------------------------------------------
| Available-for-sale financial | 2,119 | 1,159 | 2,431 |
| assets | | | |
--------------------------------------------------------------------------------
| Other receivables | 5,161 | 1,233 | 2,731 |
--------------------------------------------------------------------------------
| Total non-current assets | 48,676 | 50,319 | 48,517 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 7,892 | 7,930 | 6,399 |
--------------------------------------------------------------------------------
| Receivables | 10,143 | 10,224 | 14,439 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 15,097 | 13,767 | 13,308 |
--------------------------------------------------------------------------------
| Total current assets | 33,132 | 31,921 | 34,147 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 81,808 | 82,240 | 82,664 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Share capital | 11,821 | 11,821 | 11,821 |
--------------------------------------------------------------------------------
| Other equity | 34,789 | 30,250 | 33,828 |
--------------------------------------------------------------------------------
| Total equity | 46,610 | 42,071 | 45,649 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 18,566 | 22,168 | 17,716 |
--------------------------------------------------------------------------------
| Current liabilities | 16,632 | 18,001 | 19,299 |
--------------------------------------------------------------------------------
| Total liabilities | 35,198 | 40,169 | 37,014 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 81,808 | 82,240 | 82,664 |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| 1,000 euro | January 1 - | January 1 - | January 1 - |
| | March 31, | March 31, 2007 | December 31, |
| | 2008 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from operating | | | |
| activities: | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 1,634 | 2,326 | 5,215 |
--------------------------------------------------------------------------------
| Adjustments | 2,797 | 2,589 | 9,826 |
--------------------------------------------------------------------------------
| Change in working capital | -1,928 | -3,227 | -2,235 |
--------------------------------------------------------------------------------
| Interest received | 113 | 103 | 394 |
--------------------------------------------------------------------------------
| Interest paid and other | -326 | -103 | -4,805 |
| financial items | | | |
--------------------------------------------------------------------------------
| Taxes paid | -9 | -60 | -90 |
--------------------------------------------------------------------------------
| Net cash from operating | 2,281 | 1,628 | 8,305 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from investing | | | |
| activities: | | | |
--------------------------------------------------------------------------------
| Proceeds from investing | - | 60 | 498 |
| activities | | | |
--------------------------------------------------------------------------------
| Capital expenditure | -331 | -1,910 | -4,809 |
--------------------------------------------------------------------------------
| Net cash used in | -331 | -1,850 | -4,311 |
| investing activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing | | | |
| activities: | | | |
--------------------------------------------------------------------------------
| Repayments of long-term | - | -135 | -21,540 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Proceeds of long-term | - | 1,000 | 18,000 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Payments of finance lease | -58 | -48 | -213 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Net cash used in | -58 | 817 | -3,754 |
| financing activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (+) / decrease | 1,892 | 595 | 241 |
| (-) in cash and cash | | | |
| equivalents | | | |
--------------------------------------------------------------------------------
| Exchange rate changes | -103 | -12 | -117 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 13,308 | 13,184 | 13,184 |
| at the beginning of the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 15,097 | 13,767 | 13,308 |
| at the end of the period | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
| 1,000 euro | Share | Share | Trans-l | Fair | Retained | Total |
| | capital | premium | ation | value | earnings | equity |
| | | | differ- | reserve | | |
| | | | ences | | | |
--------------------------------------------------------------------------------
| Balance at | 11,821 | 20,186 | 75 | -114 | 13,682 | 45,649 |
| 1 Jan, 2008 | | | | | | |
--------------------------------------------------------------------------------
| Available-f | | | | | | |
| or-sale | | | | | | |
| financial | | | | | | |
| assets: | | | | | | |
--------------------------------------------------------------------------------
| Fair value | | | | -321 | | -321 |
| gains/losse | | | | | | |
| s | | | | | | |
| recognised | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | -418 | | | -418 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Transfer to | | | 60 | | | 60 |
| income | | | | | | |
| statement | | | | | | |
--------------------------------------------------------------------------------
| Net income | - | - | -358 | -321 | - | -679 |
| recognised | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | | | | | 1,640 | 1,640 |
| for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | -358 | -321 | 1,640 | 961 |
| recognis-ed | | | | | | |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Balance at | 11,821 | 20,186 | -283 | -435 | 15,321 | 46,610 |
| 31 Mar 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 11,821 | 20,256 | 669 | -1,042 | 8,376 | 40,080 |
| 1 Jan 2007 | | | | | | |
--------------------------------------------------------------------------------
| Available-f | | | | | | |
| or-sales | | | | | | |
| financial | | | | | | |
| assets: | | | | | | |
--------------------------------------------------------------------------------
| Fair value | | | | -343 | | -343 |
| gains/losse | | | | | | |
| s | | | | | | |
| recognised | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | -82 | | | -82 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Net income | - | - | -82 | -343 | - | -425 |
| recognised | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | | | | | 2,416 | 2,416 |
| for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | -82 | -343 | 2,416 | 1,990 |
| recognis-ed | | | | | | |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Balance at | 11,821 | 20,256 | 587 | -1,385 | 10,792 | 42,071 |
| 31 Mar 2007 | | | | | | |
--------------------------------------------------------------------------------
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
--------------------------------------------------------------------------------
| 1,000 euro | January 1 - | January 1 - | January 1 - |
| | March 31, | March 31, 2007 | December 31, |
| | 2008 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Carrying amount at the | 43,355 | 47,821 | 47,821 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Additions | 225 | 2,216 | 4,816 |
--------------------------------------------------------------------------------
| Disposals | - | - | -521 |
--------------------------------------------------------------------------------
| Depreciation and | -1,770 | -2,038 | -8,102 |
| impairments | | | |
--------------------------------------------------------------------------------
| Exchange differences | -414 | -73 | -659 |
--------------------------------------------------------------------------------
| Carrying amount at the | 41,396 | 47,927 | 43,355 |
| end of the period | | | |
--------------------------------------------------------------------------------
CHANGES IN INTEREST-BEARING LIABILITIES
--------------------------------------------------------------------------------
| 1,000 euro | January 1 - | January 1 - | January 1 - |
| | March 31, | March 31, 2007 | December 31, |
| | 2008 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Carrying amount at the | 22,259 | 25,731 | 25,731 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Proceeds of loans from | - | 999 | 17,974 |
| financial institutions | | | |
--------------------------------------------------------------------------------
| Repayments of loans from | - | -128 | -16,833 |
| financial institutions | | | |
--------------------------------------------------------------------------------
| Repayments of | - | - | -4,591 |
| sub-ordinated loans | | | |
--------------------------------------------------------------------------------
| Changes in finance lease | -56 | -17 | -21 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Carrying amount at the | 22,203 | 26 585 | 22,259 |
| end of the period | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| 1,000 euro | March 31, | March 31, | December 31, |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans secured by mortgages or | 15,667 | 19,735 | 15,667 |
| pledges | | | |
--------------------------------------------------------------------------------
| Mortgages | 29,001 | 25,565 | 29,001 |
--------------------------------------------------------------------------------
| Other pledges | - | 8,908 | - |
--------------------------------------------------------------------------------
| Off-balance sheet lease | 222 | 287 | 238 |
| commitments | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Currency forward agreements | - | 789 | - |
--------------------------------------------------------------------------------
| Currency options, call | 2,787 | - | 3,484 |
--------------------------------------------------------------------------------
| Electricity derivatives | 2,144 | 2,610 | 2,383 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Currency forward agreements | - | 39 | - |
--------------------------------------------------------------------------------
| Currency options, call | 251 | - | 119 |
--------------------------------------------------------------------------------
| Electricity derivatives | 168 | -41 | 419 |
--------------------------------------------------------------------------------
The contract price of the derivatives has been used as the nominal value of the
underlying asset. Derivative contracts are for hedging.
RELATED PARTY TRANSACTIONS
Key management compensation during the period under review amounted to 381,000
euro (335,000 euro).
KEY FIGURES SHOWING FINANCIAL PERFORMANCE
--------------------------------------------------------------------------------
| | January 1 - | January 1 - | January 1 - |
| | March 31, | March 31, 2007 | December 31, |
| | 2008 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 17,034 | 17,322 | 64,652 |
--------------------------------------------------------------------------------
| Change in net sales | -1.7 | 8.9 | 1.5 |
| compared to the pre-vious | | | |
| year's period, % | | | |
--------------------------------------------------------------------------------
| Export and foreign | 90.0 | 94.9 | 93.0 |
| operations share of net | | | |
| sales, % | | | |
--------------------------------------------------------------------------------
| Operating profit | 2,542 | 2,677 | 7,121 |
--------------------------------------------------------------------------------
| % of net sales | 14.9 | 15.5 | 11.0 |
--------------------------------------------------------------------------------
| Profit before taxes | 1,634 | 2,326 | 5,215 |
--------------------------------------------------------------------------------
| % of net sales | 9.6 | 13.4 | 8.1 |
--------------------------------------------------------------------------------
| Return on equity, % | 14.2 | 23.5 | 12.4 |
--------------------------------------------------------------------------------
| Return on investment, % | 12.9 | 16.6 | 10.8 |
--------------------------------------------------------------------------------
| Non-interest bearing | 12,995 | 13,584 | 14,755 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Net gearing ratio, % | 15.2 | 30.5 | 19.6 |
--------------------------------------------------------------------------------
| Equity ratio, % | 57.4 | 51.2 | 55.3 |
--------------------------------------------------------------------------------
| Capital expenditure | 225 | 2,216 | 4,816 |
--------------------------------------------------------------------------------
| % of net sales | 1.3 | 12.8 | 7.4 |
--------------------------------------------------------------------------------
| Depreciation | 1,770 | 2,038 | 8,095 |
--------------------------------------------------------------------------------
| Research and develop-ment | 507 | 466 | 1,854 |
| expenditure 1) | | | |
--------------------------------------------------------------------------------
| % of net sales | 3.0 | 2.7 | 2.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | 355 | 360 | 362 |
| personnel during | | | |
| the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Personnel at the end of | 359 | 360 | 357 |
| the period | | | |
--------------------------------------------------------------------------------
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.
KEY FIGURES PER SHARE
--------------------------------------------------------------------------------
| | March 31, | March 31, | December 31, |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share basic and | 0.10 | 0.14 | 0.31 |
| diluted, euro | | | |
--------------------------------------------------------------------------------
| Equity per share, euro | 2.76 | 2.49 | 2.70 |
--------------------------------------------------------------------------------
| Dividend per share, euro | - | - | 0.10 |
--------------------------------------------------------------------------------
| Dividend/earnings, % | - | - | 31.8 |
--------------------------------------------------------------------------------
| Price/earnings (P/E) | 25.5 | 28.0 | 9.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share price development (Jan | | | |
| 1 -) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average trading price | 2.63 | 3.88 | 3.87 |
--------------------------------------------------------------------------------
| Lowest trading price | 2.20 | 3.34 | 2.54 |
--------------------------------------------------------------------------------
| Highest trading price | 3.14 | 4.38 | 4.67 |
--------------------------------------------------------------------------------
| Trading price at the end of | 2.48 | 3.85 | 3.03 |
| the period | | | |
--------------------------------------------------------------------------------
| Market capitalisation at the | 41,881 | 65,017 | 51,169 |
| end of the period, 1,000 | | | |
| euro | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading volume (Jan 1 -) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading volume, transactions | 2,164,907 | 3,193,947 | 13,175,961 |
--------------------------------------------------------------------------------
| In relation to weighted | 12.8 | 18.9 | 78.0 |
| average number of | | | |
| shares, % | | | |
--------------------------------------------------------------------------------
| Trading volume, euro | 5,689,188 | 12,400,841 | 51,002,491 |
--------------------------------------------------------------------------------
| The weighted average number | 16,887,500 | 16,887,500 | 16,887,500 |
| of shares during the period | | | |
| under review adjusted by the | | | |
| share issue | | | |
--------------------------------------------------------------------------------
| The number of shares at the | 16,887,500 | 16,887,500 | 16,887,500 |
| end of the period adjusted | | | |
| by the share issue | | | |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| | 10-12/08 | 7-9/08 | 4-6/08 | 1-3/08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | 17,034 |
--------------------------------------------------------------------------------
| Compared to previous | | | | 7.9 |
| quarter, % | | | | |
--------------------------------------------------------------------------------
| Operating profit | | | | 2,542 |
--------------------------------------------------------------------------------
| % of net sales | | | | 14.9 |
--------------------------------------------------------------------------------
| Profit before taxes | | | | 1,634 |
--------------------------------------------------------------------------------
| % of net sales | | | | 9.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash flow generated from: | | | |
--------------------------------------------------------------------------------
| Operating activities | | | | 2,281 |
--------------------------------------------------------------------------------
| Investing activities | | | | -331 |
--------------------------------------------------------------------------------
| Financing activities | | | | -58 |
--------------------------------------------------------------------------------
| Increase/decrease in cash and | | | | 1,892 |
| cash equivalents | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at the end of | | | | 359 |
| the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 10-12/07 | 7-9/07 | 4-6/07 | 1-3/07 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 15,790 | 15,927 | 15,613 | 17,322 |
--------------------------------------------------------------------------------
| Compared to previous | -0.9 | 2.0 | -9.9 | 8.2 |
| quarter, % | | | | |
--------------------------------------------------------------------------------
| Operating profit | 981 | 2,801 | 662 | 2,677 |
--------------------------------------------------------------------------------
| % of net sales | 6.2 | 17.6 | 4.2 | 15.5 |
--------------------------------------------------------------------------------
| Profit before taxes | 454 | 2,229 | 207 | 2,326 |
--------------------------------------------------------------------------------
| % of net sales | 2.9 | 14.0 | 1.3 | 13.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash flow generated from: | | | | |
--------------------------------------------------------------------------------
| Operating activities | 4,735 | 2,357 | -414 | 1,628 |
--------------------------------------------------------------------------------
| Investing activities | -285 | -593 | -1,582 | -1,850 |
--------------------------------------------------------------------------------
| Financing activities | -931 | -58 | -3,582 | 817 |
--------------------------------------------------------------------------------
| Increase/decrease in cash and | 3,518 | 1,706 | -5,578 | 595 |
| cash equivalents | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at the end of the | 357 | 356 | 369 | 360 |
| period | | | | |
--------------------------------------------------------------------------------
DEFINITIONS OF KEY FINANCIAL FIGURES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % (ROE) | = | Profit/loss for the period from |
| | | continuing operations x 100 |
--------------------------------------------------------------------------------
| | | Equity (average for the period) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment, % (ROI) | = | (Profit/loss before tax + interest |
| | | and other financial expenses) x 100 |
--------------------------------------------------------------------------------
| | | Balance sheet total - non-interest |
| | | bearing liabilities (average for the |
| | | period) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, % | = | Total equity x 100 |
--------------------------------------------------------------------------------
| | | Balance sheet total - advances |
| | | received |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net gearing ratio, % | = | (Interest-bearing liabilities - cash |
| | | and cash equivalents) x 100 |
--------------------------------------------------------------------------------
| | | Equity |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | = | Profit/loss for the period |
| | | attributable to the equity holders of |
| | | the parent company |
--------------------------------------------------------------------------------
| | | Adjusted weighted average number of |
| | | shares in issue during the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share | = | Equity attributable to the equity |
| | | holders of the parent company |
--------------------------------------------------------------------------------
| | | Adjusted number of shares at the end |
| | | of the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend per share | = | Dividend for the period |
--------------------------------------------------------------------------------
| | | Adjusted number of shares at the end |
| | | of the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Price/earnings ratio (P/E) | = | Last adjusted trading price at the |
| | | end of the period |
--------------------------------------------------------------------------------
| | | Earnings per share |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average trading price | = | Total traded amount in euro |
--------------------------------------------------------------------------------
| | | Adjusted number of shares traded |
| | | during the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market capitalisation at the | = | Number of shares at the end of the |
| end of the period | | period x trading price at the end of |
| | | the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading volume | = | Number of shares traded during the |
| | | period |
--------------------------------------------------------------------------------
| | | Weighted average number of shares |
| | | during the period |
--------------------------------------------------------------------------------
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.
The future estimates and forecasts presented in this report are based on company
management's current knowledge. Actual events and results may differ from the
estimates presented here.
OKMETIC OYJ
Antti Rasilo
President
For further information, please contact:
President Antti Rasilo, Okmetic Oyj,
tel. +358 40 746 1351, email: antti.rasilo@okmetic.com
Senior Vice President Esko Sipilä, Okmetic Oyj,
tel. +358 9 5028 0286, email: esko.sipila@okmetic.com
Distribution:
OMX Nordic Exchange
Principal media
www.okmetic.com
OKMETIC IN BRIEF
Take it higher
Okmetic is a technology company which supplies tailor-made silicon wafers for
sensor and semiconductor industries and sells its technological expertise.
Okmetic provides its customers with solutions that boost their competitiveness
and profitability.
Okmetic's silicon wafers are part of a further processing chain that produces
end products that improve human interaction and quality of life. Okmetic's
products are based on high-tech expertise that generates added value for
customers, innovative product development and an extremely efficient production
process.
Okmetic has a global customer base and sales network, production plants in
Finland and the US and contract manufacturers in Japan and China.
Okmetic's shares are listed on OMX's Nordic Stock Exchange under the code OKM1V.
For more information on the company, please visit our website at
www.okmetic.com.
