OKMETIC OYJ INTERIM REPORT 24 JULY 2014 AT 8.00 A.M.
INTERIM REPORT 1 JANUARY - 30 JUNE 2014: STRONG DEMAND FOR SENSOR WAFERS
GENERATED GOOD NET SALES GROWTH IN THE SECOND QUARTER
Unless otherwise stated, figures in parenthesis refer to the corresponding
period in the previous year.
APRIL-JUNE IN BRIEF:
* Net sales amounted to 18.7 (17.0) million euro, up 9.8%.
* Silicon wafer shipments amounted to 17.9 (16.9) million euro, up 5.6%.
* Operating profit was 1.1 (2.0) million euro, corresponding to 6.1% (11.6%)
of net sales.
* Profit for the period was 0.9 (1.4) million euro.
* Basic earnings per share was 0.05 (0.08) euro.
* Net cash flow from operations amounted to 1.9 (0.5) million euro.
JANUARY-JUNE IN BRIEF:
* Net sales amounted to 36.1 (33.4) million euro, up 8.0%.
* Silicon wafer shipments amounted to 35.4 (32.4) million euro, up 9.1%.
* Operating profit was 2.1 (3.3) million euro, corresponding to 5.7% (10.0%)
of net sales.
* Profit for the period was 1.5 (2.6) million euro.
* Basic earnings per share was 0.09 (0.15) euro.
* Net cash flow from operations amounted to 2.6 (1.3) million euro.
SHORT-TERM OUTLOOK
The demand for semiconductors is expected to grow in year 2014. Also for the
silicon wafer market, growth is expected in 2014. Following the growth in
shipment volumes, the long decline in the value of the silicon wafer market is
anticipated to end this year.
The demand for Okmetic's sensor and special wafers is estimated to grow year-
over-year also during the second half of 2014.The price level of demanding
sensor wafers is expected to remain fairly stable.
Prices of semiconductor wafers are being hit by the weakened Japanese yen, as
the Japanese manufacturers hold a significant stake of the silicon wafer market.
However, the demand is expected to pick up compared to 2013. In accordance with
normal seasonal fluctuation, the demand for semiconductor wafers is strongest in
the second and third quarters of the year.
Other business sales are not expected to materially differ from the low level of
year 2013.
The company retains its existing guidance, according to which net sales and
operating profit in 2014 are estimated to exceed the level of year 2013.
PRESIDENT KAI SEIKKU:
"Net sales in the second quarter were up by almost 10 percent compared to the
corresponding period last year, as the positive sales trend continued in
strategically important wafers used mainly in advanced sensor applications. The
value of shipments of these high value-added specialty products increased by
almost 17 percent in the first half of the year, with SOI wafer sales reaching a
record high. In contrast, sales of semiconductor wafers were down slightly due
to a more fierce price competition.
Despite the increase in comparable profitability in silicon wafers, Okmetic's
operating profit in January-June fell in comparison to 2013. Nearly half a
million euro of the decrease in operating profit was accounted by changes in
non-operating IFRS items compared to the corresponding period last year. The
margin of polysilicon trading, reported under Other business, fell by slightly
over a million euro from the first half of 2013. In addition, the profitability
of the Allen plant was 0.3 million euro weaker than in the first half of 2013,
due partly to inventory write-downs and equipment break-downs.
Okmetic's second-half result is expected to improve year-over-year.
Fixed costs were tightly managed. The company's working capital is being
burdened by long-term polysilicon purchase contracts related to the solar cell
business, where the operating conditions have changed. The expiration of these
contracts at the end of 2015 will allow a reduction in working capital.
Roles within Okmetic's executive management group were rotated at the beginning
of April, and the members with new positions have assumed their new roles and
responsibilities. The company now has a leaner executive management group,
reduced in size by one member with the goal of assigning more clearly defined
responsibilities and enhancing the flow of information within the organisation.
Consolidation in the silicon wafer industry looks set to continue at an even
faster pace as a result of the challenging market conditions. The industry has
recently seen announcements of reductions in production capacity as well as of
restructuring. Okmetic continues to follow its long-term strategy of focusing on
high value-added 150 to 200 millimetre wafers."
KEY FIGURES
1,000 euro 1 Apr- 1 Apr- 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Jun, 30 Jun, 31 Dec,
2014 2013 2014 2013 2013
Net sales 18,700 17,035 36,105 33,438 68,516
Operating profit
before
depreciation
(EBITDA) 2,779 3,378 5,325 6,103 10,905
Operating profit 1,137 1,971 2,065 3,345 5,031
% of net sales 6.1 11.6 5.7 10.0 7.3
Profit for
the period 890 1,361 1,531 2,579 3,842
Basic earnings
per share,
euro 0.05 0.08 0.09 0.15 0.23
Net cash flow
from operating
activities 1,932 519 2,565 1,330 9,726
Net interest-
bearing
liabilities 8,160 7,788 8,160 7,788 6,530
Equity ratio, % 66.6 69.7 66.6 69.7 68.2
Average number
of personnel
during the period 382 372 368 365 363
MARKETS
Customer industries sensor and semiconductor industry
Sensor industry
The increasing use of micro sensors in many consumer electronics products has
accelerated sensor sales growth. In 2014, the sales value of sensor industry is
estimated to grow by 5-11 percent, and annual growth of 6-13 percent is
forecasted for the next few years. In terms of volume, sensor shipments are
likely to clearly reach a new record in year 2014 too. (IHS, Yole)
Semiconductor industry
In January-May, the sales of the global semiconductor industry in US dollars
grew by 10 percent from the corresponding period last year (SIA). For the whole
year 2014, the growth estimates settle between 6.5 and 10 percent (WSTS,
Semiconductor Intelligence, Cowan).
Growth estimates for year 2015 settle between 3 and 9 percent (WSTS,
Semiconductor Intelligence, Cowan, Digitimes, ICInsights), and the growth of the
semiconductor market is expected to continue also in the following years (WSTS,
IDC).
Silicon wafer market
According to the report of SMG, the group of silicon wafer suppliers in SEMI (a
global umbrella organisation for semiconductor materials and equipment
industry), the surface area of silicon wafer shipments calculated in square
inches grew by 11 percent year-over-year in the first quarter of 2014. SMG has
not yet published its second quarter figures. According to Okmetic's own
estimate, the growth in the second quarter was at the same level as in the
beginning of the year. Following the growth in shipment volumes, the long
decline in the value of the silicon wafer market in US dollars is expected to
end this year.
The key customer areas for Okmetic in the silicon wafer market
In line with its strategy, Okmetic seeks niches in the silicon wafer market,
where growth exceeds market average and in which the company has special
expertise. Okmetic supplies primarily 150mm and 200mm wafers. The sensor/MEMS
industry is a key growth area for Okmetic. MEMS market grows as portable
consumer products, automotive electronics, and industrial process control
increase.
In the semiconductor market, Okmetic's growth areas include silicon wafers for
the production of discrete and power semiconductors. In these wafer markets,
areas for growth include, among others, components used in the production of
renewable energy, increasing automotive electronics, portable consumer products,
as well as different solutions related to power supply and efficiency
improvement.
SALES
In January-June, Okmetic's net sales amounted to 36.1 (33.4) million euro. Net
sales were up by 8.0% (down 19.2%) from the comparison period due to strong
demand for sensor wafers. Net sales in the second quarter grew by 9.8 percent
year-over-year and 7.4% from the first quarter. Okmetic's market share remained
stable in product groups important to the company.
Sales per customer area
1 Apr- 1 Apr- 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Jun, 30 Jun, 31 Dec,
2014 2013 2014 2013 2013
Sensor wafers 64% 58% 63% 59% 59%
Semiconductor
wafers 33% 39% 34% 38% 37%
Other business 3% 3% 3% 3% 4%
Sound demand for sensor wafers continued, and the value of sensor wafer
shipments grew by 16.7% percent in January-June from the corresponding period
last year. Strong demand for the strategically important SOI wafers continued.
The demand for sensor wafers is estimated to continue solid throughout the year
2014.
In January-June, the shipments of semiconductor wafers declined by 2.7 percent
from the comparison period last year, as the good sales trend in the first
quarter did not continue in the second quarter. However, the demand for
semiconductor wafers is estimated to improve in the third quarter because of the
seasonal fluctuation typical of the industry.
The value of Other business shipments was 0.9 (1.1) million euro in January-
June.
Sales per market area
1 Apr- 1 Apr- 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Jun, 30 Jun, 31 Dec,
2014 2013 2014 2013 2013
North America 39% 41% 38% 40% 42%
Europe 40% 42% 40% 39% 40%
Asia 21% 17% 22% 21% 18%
During the first half of the year, sales in Asia were up clearly due to
excellent second quarter sales. Also in Europe sales continued to grow. Sales in
North America grew only somewhat in January-June.
PROFITABILITY
April-June
In April-June, Okmetic's operating profit amounted to 1.1 (2.0) million euro,
i.e. 6.1 (11.6) percent of net sales. Profit for the period amounted to 0.9
(1.4) million euro. Basic earnings per share was 0.05 (0.08) euro. Diluted
earnings per share was 0.05 (0.08) euro.
January-June
In January-June, Okmetic's operating profit amounted to 2.1 (3.3) million euro,
i.e. 5.7 (10.0) percent of net sales. The profitability of the Allen plant was
0.3 million euro weaker than in the first half of 2013, due partly to inventory
write-downs and equipment break-downs. The margin of polysilicon trading,
reported under Other business, fell by slightly over a million euro from the
first half of 2013. In addition, nearly half a million euro of the decrease in
operating profit was accounted by changes in IFRS items compared to the
corresponding period last year.
Profit for the period amounted to 1.5 (2.6) million euro. Basic earnings per
share was 0.09 (0.15) euro. Diluted earnings per share was 0.08 (0.15) euro.
FINANCING
The company's financial position is solid.In January-June, net cash flow from
operations amounted to 2.6 (1.3) million euro. The changes in working capital
tied up inoperations weakened cash flow from operations by 2.7 (7.0) million
euro.
On 30 June 2014, the company's interest-bearing liabilities amounted to 17.5
(12.8) million euro. Okmetic issued a multi-issuer bond in June, which increased
interest-bearing liabilities by five million euro. The maturity of the multi-
issuer bond is five years. The financing is used for investments and general
corporate purposes.
At the end of the reporting period, cash and cash equivalents amounted to 9.3
(5.0) million euro. On 30 June 2014, the company's net debt was 8.2 million euro
(on 30 June 2013,net debt amounted to 7.8 million euro).
The group has ensured liquidity with committed credit facilities of 6.0 million
euro. On 30 June 2014, 2.0 million euro of the committed credit facilities was
in use. (On 30 June 2013, the committed credit facilities were fully unused.)
Return on equity amounted to 5.2 (8.4) percent. The company's equity ratio was
66.6 (69.7) percent. Equity per share was 3.52 (3.63) euro.
INVESTMENTS
In January-June, Okmetic's capital expenditure amounted to 2.0 (4.1) million
euro. The investments were mainly for increasing capacity for 200 mm wafers at
the Vantaa plant.
PRODUCT DEVELOPMENT
In January-June, the company expensed 1.2 (1.2) million euro in product
development projects, corresponding to 3.5 (3.5) percent of net sales. Product
development costs have not been capitalised. Emphasis in product development was
on engineered products. Focus areas include broadening the SOI product family,
improving capability in 200mm wafers as well as developing crystal growing to
enhance capability in high and low resistivity products.
PERSONNEL
On average, Okmetic employed 368 (365) people in January-June. At the end of the
period, Okmetic had 393 (379) employees, of which 348 worked in Finland, 39 in
the US, five in Japan, and one in Hong Kong.
CORPORATE GOVERNANCE
Okmetic Oyj's annual general meeting, which was held on 9 April 2014, adopted
the annual accounts and the consolidated annual accounts for 2013 and discharged
the company's management from liability. It was decided that no dividend shall
be distributed for the financial year 2013. In addition, the annual general
meeting authorised the board to decide on the repurchase and/or the acceptance
as pledge of the company's own shares as well as on the issuance of shares, the
transfer of the company's own shares, and the issuance of special rights
entitling to shares.
It was decided that there would be five members on the company's board of
directors. Mr. Hannu Martola, Ms. Mervi Paulasto-Kröckel, Mr. Mikko Puolakka and
Mr. Henri Österlund were re-elected as members of the board of directors, and
Mr. Jan Lång was elected as a new member of the board. The board of directors
elected Henri Österlund as its chairman and Jan Lång as its vice chairman in its
organising meeting held immediately after the annual general meeting.
Authorised Public Accountant PricewaterhouseCoopers Oy was elected as auditor,
with APA Mikko Nieminen having the principal responsibility.
Authorisations given to the board of directors and other decisions of the annual
general meeting were disclosed in a stock exchange release published on 9 April
2014.
BUSINESS RISKS
There have been no significant changes in the company's near future business
risks and uncertainties.
Okmetic's business is confronted by risks, which may arise from the company's
operations or changes in its operating environment. Risks that, if materialized,
can have an adverse effect on the company's operations and valuation are
described below.
Okmetic's silicon wafer sales are targeted at the sensor and semiconductor
producers in the electronics industry. 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. The
proliferation of sensors in consumer electronics applications may, however,
increase the susceptibility of this market too to economic fluctuations.
Okmetic has existing polysilicon purchasing obligations partly until the end of
2015. Since the price level of the solar cell market has dropped, the validity
of long-term polysilicon purchase contracts typical of the industry may cause a
price risk.
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 company has considerable pricing power only in its own special
products. The pricing of other wafers is largely based on global market price.
Okmetic operates globally, and therefore the company's business is affected by
risks due to exchange rate fluctuations, consisting of cash flows from purchases
and sales. A significant part of sales is conducted in US dollars. Despite
hedging, the company remains exposed to exchange rate fluctuations.
Substantial amounts of electricity are used in Okmetic's production. Despite
hedging, the company is exposed to fluctuations in the price of electricity.
SHARES AND SHAREHOLDERS
On 30 June 2014, Okmetic Oyj's paid-up share capital, as entered in the Finnish
Trade Register, was 11,821,250 euro. The number of shares was 17,287,500. The
shares have no nominal value attached. Each share entitles to one vote at
general meetings. The company has one class of shares. The company's shares are
included in the Finnish book-entry system.
Major shareholders on
30 June 2014
Shares, Share,
pcs %
Ilmarinen Mutual Pension
Insurance Company 1,004,985 5.8
Oy Ingman Finance Ab 870,000 5.0
Mandatum Life Insurance
Company Limited 800,000 4.6
The State Pension Fund 600,000 3.5
Nordea Nordic Small
Cap Fund 528,810 3.1
Varma Mutual Pension
Insurance Company 477,175 2.8
Okmetic Oyj *) 416,763 2.4
Etra-Invest Oy Ab 400,000 2.3
Investment Fund
Taaleritehdas Arvo Markka Osake 300,100 1.7
Nordea Finland Small Cap Fund 250,095 1.5
Foreign investors and
nominee accounts held by
custodian banks 2,885,195 16.7
Other 8,754,377 50.6
Total 17,287,500 100.0
*)Of Okmetic Oyj's shares, 400,000 pcs are owned through Okmetic Management Oy.
SHARE PRICE PERFORMANCE AND TRADING
A total of 2.1 (1.6) million shares were traded between 1 January and 30 June
2014, representing 12.4 (9.3) percent of the weighted average of share total of
17.3 (17.3) million during the period. The lowest quotation during the period
was 4.38 (4.25) euro, and the highest 5.25 (5.15) euro, with the average trading
price being 4.68 (4.67) euro. The closing quotation for the period on 30 June
2013 was 4.60 (4.70) euro. At the end of the period, the market capitalisation
amounted to 79.5 (81.3) million euro.
OWN SHARES AND DIRECTED SHARE ISSUES
In a directed share issue on 16 January 2014, Okmetic Oyj transferred a total of
150,000 own shares held by the company to President Kai Seikku (140,000 shares)
and Deputy to the President of that time, Mikko Montonen (10,000 shares).
Subscription price per share was determined using the average trading price of
the company's share weighted by trading volume in NASDAQ OMX Helsinki Oy on 16
January 2014, and was 4.9969 euro.
On 13 February 2014, Okmetic Oyj's board of directors announced of its decision
to transfer a total of 11,919 own shares held by the company as a part of the
company's share-based incentive scheme for the executive management group, of
which the company gave a stock exchange release on 12 February 2013.
According to the decision of the annual general meeting, Okmetic Oyj transferred
a total of 15,441 shares to the board members as payment of the annual
remuneration on 9 May 2014.
At the end of the reporting period Okmetic held 416 763 (194 123) own shares,
corresponding to approximately 2.4 (1.1) percent of all Okmetic shares and
votes.
OTHER EVENTS IN THE INTERIM PERIOD
On 15 January 2014, the board of directors decided to dissolve the ownership
arrangement of Okmetic Management Oy, owned by President Kai Seikku and Deputy
to the President of that time, Mikko Montonen, with an arrangement in which
Okmetic Oyj acquired the entire share capital of Okmetic Management Oy. Also
400,000 shares of Okmetic Oyj were transferred to the group via Okmetic
Management Oy, as well as a loan receivable of Okmetic Oyj from Okmetic
Management Oy. The value of the arrangement for the part of shares owned by
Okmetic Management Oy was determined using the average trading price weighted by
trading volume of the company's share in NASDAQ OMX Helsinki Oy on 16 January
2014, 4.9969 euro. There were no shareholders of Okmetic Management Oy in the
board of directors of Okmetic Oyj.
Mikko Montonen, Executive Vice President, Customers and Markets, Deputy to the
President, resigned from Okmetic on 26 February 2014 to assume a new position
with another company. Mr. Montonen's management responsibilities at Okmetic
ended on 6 April 2014.
Anna-Riikka Vuorikari-Antikainen, then Senior Vice President, Products, was
appointed Senior Vice President, Customers and Markets from 7 April 2014. Ms.
Vuorikari-Antikainen is also responsible for customer support.
Atte Haapalinna, then Senior Vice President, Customer Support, was appointed
Senior Vice President, Products from 7 April 2014.
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 30 JUNE 2014 (unaudited)
ACCOUNTING POLICIES
These interim financial statements have been prepared in accordance with IAS
34, Interim Financial Reporting.
In preparing these interim financial statements, Okmetic has followed the same
accounting policies as in the financial statements for 2013 except for the
effect of changes required by the adoption of certain new or revised standards
and interpretations as of 1 January 2014, which have been described in financial
statements 2013. The adoption of the new and revised standards and
interpretations has not had an effect on the figures presented from the
reporting period.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1,000 euro 1 Apr- 1 Apr- 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Jun, 30 Jun, 31 Dec,
2014 2013 2014 2013 2013
Net sales 18,700 17,035 36,105 33,438 68,516
Cost of sales -15,084 -12,824 -29,156 -25,942 -54,918
Gross profit 3,616 4,211 6,949 7,496 13,598
Other income
and expenses -2,479 -2,240 -4,884 -4,151 -8,567
Operating
profit 1,137 1,971 2,065 3,345 5,031
Financial
income and
expenses -41 -159 -77 -256 -630
Profit before
tax 1,096 1,812 1,988 3,089 4,401
Income tax -207 -450 -457 -509 -559
Profit for
the period 890 1,361 1,531 2,579 3,842
Other
comprehensive
income:
Items that may
be reclassified
to profit or
loss in
subsequent
periods
Cash flow
hedges 21 -69 1 -116 -58
Translation
differences 13 -20 9 296 -60
Other
comprehensive
income for the
period, net of
tax 34 -89 11 180 -118
Total
comprehensive
income for the period
924 1,273 1,541 2,760 3,724
Profit for the
period
attributable
to:
Equity holders 890 1,361 1,531 2,579 3,842
of the parent
company
Total
comprehensive
income
attributable
to:
Equity holders
of the parent
company 924 1,273 1,541 2,760 3,724
Basic earnings
per share,
euro 0.05 0.08 0.09 0.15 0.23
Diluted
earnings per
share, euro 0.05 0.08 0.08 0.15 0.22
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro 30 Jun, 2014 30 Jun, 2013 31 Dec,
2013
Assets
Non-current assets
Property, plant and
equipment 44,183 44,950 45,295
Intangible assets 822 817 897
Other receivables 1,031 2,415 1,419
Total non-current
assets 46,036 48,182 47,611
Current assets
Inventories 17,811 17,663 16,634
Receivables 16,679 16,123 14,572
Cash and cash 9,320 5,034 5,214
equivalents
Total current
assets 43,809 38,820 36,420
Total assets 89,845 87,002 84,031
Equity and liabilities
Equity
Equity attributable
to equity holders of
the parent company
Share capital 11,821 11,821 11,821
Other equity 47,566 48,810 45,451
Total equity 59,387 60,631 57,273
Liabilities
Non-current
liabilities 14,441 13,154 10,533
Current liabilities 16,017 13,217 16,226
Total liabilities 30,458 26,371 26,759
Total equity and
liabilities 89,845 87,002 84,031
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 31 Dec,
2014 2013 2013
Cash flows from operating
activities:
Profit before tax 1,988 3,089 4,401
Adjustments 3,308 4,243 6,566
Change in working capital -2,687 -6,951 -2,091
Financial items -111 -40 -126
Tax paid 67 990 976
Net cash from
operating activities 2,565 1,330 9,726
Cash flows from investing
activities:
Purchases of property,
plant and equipment -2,901 -6,098 -9,089
Net cash used in
investing activities -2,901 -6,098 -9,089
Cash flows from financing
activities:
Proceeds from long-
term borrowings 5,000 10,000 10,000
Proceeds of short term borrowings
4,000 23 1,024
Payments of long-term
borrowings -1,000 - -1,000
Payments of short term
borrowings -2,024 -3,000 -4,043
Payments of finance
lease liabilities -280 -225 -478
Other items 36 10 10
Dividends paid -578 -4,170 -6,763
Capital repayment - - -1,169
Share issue 750 - -
Acquisition of Okmetic
Management Oy's share
capital -1,516 - -
Net cash used in
financing activities 4,387 2,628 -2,419
Increase (+) /
decrease (-) in cash
and cash equivalents 4,051 -2,139 -1,782
Exchange rate changes 54 -115 -292
Cash and cash
equivalents at
the beginning
of the period 5,214 7,288 7,288
Cash and cash
equivalents at
the end of the
period 9,320 5,034 5,214
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to equity holders of parent company
Share Share Reserve Other Retained Total
capital pre- for invested re- earnings
mium un-restricted serves
1,000 euro equity 1)
Balance at
31 Dec, 2013
11,821 20,045 3 1,756 23,647 57,273
Profit for
the period 1,531 1,531
Other com-
prehensive
income, net
of tax:
Cash flow
hedges 1 1
Translation
differences 9 9
Total com-
prehensive
income for
the period 11 1,531 1,541
Share issue
750 750
Share-based
payments
180 180
Acquisition
of non-
controlling
interest -357 -357
Balance at
30 Jun, 2014
11,821 20,045 753 1,766 25,001 59,387
Balance at
31 Dec, 2012
11,821 20,045 1,200 1,874 26,919 61,860
Profit for
the period 2,579 2,579
Other com-
prehensive
income, net
of tax:
Cash flow
hedges -116 -116
Translation
differences 296 296
Total com-
prehensive
income for
the period 180 2,579 2,760
Share-based
payments
181 181
Dividends
distributed -4,170 -4,170
Balance at
30 Jun, 2013
11,821 20,045 1,200 2,054 25,510 60,631
1)"Other reserves" contains hedge reserve and translation differences.
Acquisition of shares of Okmetic Management Oy is treated as acquisition of non-
controlling interest.
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
1,000 euro 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Dec,
2014 2013 2013
Carrying amount
at the beginning
of the period 45,295 43,433 43,433
Additions 1,955 4,135 7,648
Disposals - - -9
Depreciation -3,098 -2,632 -5,623
Exchange differences 32 14 -154
Carrying amount
at the end of
the period 44,183 44,950 45,295
COMMITMENTS AND CONTINGENCIES
1,000 euro 30 Jun, 30 Jun, 31 Dec,
2014 2013 2013
Loans, secured with
collaterals 9,000 11,000 10,000
Collaterals 17,128 17,128 17,128
Off-balance sheet
lease commitments 344 433 395
Capital commitments 1,762 3,412 1,910
Nominal values of
derivative contracts
Currency options,
call 436 228 948
Currency options,
put 142 228 182
Currency forward
agreements 1,416 690 1,144
Electricity derivatives 1,465 2,304 1,847
Fair values of
derivative contracts
Currency options, call 3 1 12
Currency options, put -4 -1 -1
Currency forward agreements
-12 2 20
Electricity derivatives -294 -326 -350
The contract price of the derivatives has been used as the nominal value of the
underlying asset.
HIERARCHY LEVELS OF DERIVATIVE CONTRACTS MEASURED AT FAIR VALUE
1,000 euroa 30 Jun, 2014 30 Jun, 2013
Level Level Level Level Level Level
1 2 3 1 2 3
Financial
assets
Derivative
financial
instruments - 60 - - 72 -
Financial
liabilities
Derivative
financial
instruments - 367 - - 396 -
Fair value estimation
The group's financial instruments that are measured at fair value comprise
derivatives used for hedging and held for trading, and they are classified on
hierarchy level 2.
Fair values of level 2 instruments are based on other data than quoted prices in
active markets, but on data from which the asset is observable, either directly
(i.e. price) or indirectly (i.e. derived from the prices).
Fair value determination
The fair values of currency derivatives are determined by using mark-to-market
method at the reporting date.
The fair values of electricity derivatives are determined on the basis of market
quotations and contract prices of the instruments at the reporting date.
KEY FIGURES SHOWING FINANCIAL PERFORMANCE
1,000 euroa 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 31 Dec,
2014 2013 2013
Net sales 36,105 33,438 68,516
Change in net sales
compared to the previous
year's period, % 8.0 -19.2 -17.5
Export and foreign
operations share
of net sales, % 91.7 91.3 91.8
Operating profit before
depreciation (EBITDA) 5,325 6,103 10,905
% of net sales 14.7 18.3 15.9
Operating profit 2,065 3,345 5,031
% of net sales 5.7 10.0 7.3
Profit before tax 1,988 3,089 4,401
% of net sales 5.5 9.2 6.4
Return on equity, % 5.2 8.4 6.4
Return on investment, % 5.7 8.6 6.7
Non-interest-bearing
liabilities 12,978 13,550 15,014
Net interest-bearing
liabilities 8,160 7,788 6,530
Net gearing ratio, % 13.7 12.8 11.4
Equity ratio, % 66.6 69.7 68.2
Capital expenditure 1,955 4,135 7,648
% of net sales 5.4 12.4 11.2
Depreciation 3,260 2,758 5,874
Research and development
expenditure 1,249 1,155 2,779
% of net sales 3.5 3.5 4.1
Average number of
personnel during 368 365 363
the period
Personnel at the
end of the period 393 379 355
KEY FIGURES PER SHARE
When calculating equity per share, Okmetic's own shares and Okmetic shares owned
by Okmetic Management Oy are deducted from the total number of shares.
Euro 30 Jun, 30 Jun, 31 Dec,
2014 2013 2013
Basic earnings
per share 0.09 0.15 0.23
Diluted earnings
per share 0.08 0.15 0.22
Equity per share 3.52 3.63 3.43
Capital repayment per share
- - 0.07
Dividend per share - - -
Dividends/earnings, % - - -
Effective dividend
yield, % - - -
Price/earnings(P/E) - - 20.9
Share performance
(1.1.-)
Average trading price 4.68 4.67 4.92
Lowest trading price 4.38 4.25 4.25
Highest trading price 5.25 5.15 5.66
Trading price at the
end of the period 4.60 4.70 4.82
Market capitalisation
at the end of the
period, 1,000 euro 79,522 81,251 83,326
Trading volume (1 Jan-)
Trading volume,
transactions, 1,000 pcs 2,139 1,611 3,382
In relation to weighted
average number of
shares, % 12.4 9.3 19.6
Trading volume,
1,000 euro 10,050 7,526 16,647
The weighted average
number of shares during
the period under review
adjusted by the share
issue, 1,000 pcs 17,288 17,288 17,288
The number of shares at
the end of the period
adjusted by the share
issue, 1,000 pcs 17,288 17,288 17,288
QUARTERLY KEY FIGURES
1,000 euro 10-12/ 7-9/ 4-6/ 1-3/
2014 2014 2014 2014
Net sales 18,700 17,405
Compared to previous
quarter, % 7.4 3.4
Compared to corresponding
period last year, % 9.8 6.1
Operating profit 1,137 928
% of net sales 6.1 5.3
Profit before tax 1,096 892
% of net sales 5.9 5.1
Net cash flow generated
from:
Operating activities 1,932 632
Investing activities -1,263 -1,637
Financing activities 4,859 -472
Increase/decrease in cash
and cash equivalents 5,528 -1,477
Personnel at the end
of the period 393 354
1,000 euro 10-12/ 7-9/ 4-6/ 1-3/
2013 2013 2013 2013
Net sales 16,837 18,242 17,035 16,403
Compared to previous
quarter, % -7.7 7.1 3.9 -20.7
Compared to corresponding
period last year, % -18.6 -13.2 -24.2 -13.2
Operating profit 263 1,423 1,971 1,373
% of net sales 1.6 7.8 11.6 8.4
Profit before tax 32 1,280 1,812 1,277
% of net sales 0.2 7.0 10.6 7.8
Net cash flow generated
from:
Operating activities 4,915 3,481 519 811
Investing activities -1,304 -1,687 -1,966 -4,131
Financing activities -3,892 -1,155 -7,276 9,904
Increase/decrease in cash
and cash equivalents -281 639 -8,724 6,585
Personnel at the end 355 356 379 354
of the period
DEFINITIONS OF KEY FINANCIAL FIGURES
Operating profit before = Operating profit + depreciation
depreciation (EBITDA)
Return on equity (ROE), % = Profit/loss for the period 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, % = Equity x 100/
-----------------------------------------
Balance sheet total - advances received
Net interest-bearing liabilities = Interest-bearing liabilities - cash and
cash equivalents
Net gearing ratio, % = (Interest-bearing liabilities - cash and
cash equivalents) x 100/
-----------------------------------------
Equity
Earnings per share = Profit/loss for the period attributable
to equity holders of the parent
company/
-----------------------------------------
Adjusted weighted average number of
shares in issue during the period
Equity per share = Equity attributable to 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
Effective dividend yield, % = Dividend per share x 100/
-----------------------------------------
Trading price 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 end of = Number of shares at the end of the
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 future estimates and forecasts in this interim report are based on the
company management's current knowledge. Actual events and results may differ
from the estimates presented here.
OKMETIC'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2014
Okmetic will publish its third quarter results on 23 October 2014.
OKMETIC OYJ
Board of directors
For further information, please contact:
President Kai Seikku, Okmetic Oyj,
tel. +358 5028 0232, email: kai.seikku@okmetic.com
Senior Vice President, Finance, IT, and Communications
Juha Jaatinen, Okmetic Oyj, tel. +358 9 5028 0286,
email: juha.jaatinen@okmetic.com
Distribution:
NASDAQ OMX Helsinki
Principal media
www.okmetic.com
OKMETIC IN BRIEF
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 NASDAQ OMX Helsinki under the code OKM1V. For more
information on the company, please visit our website at www.okmetic.com.
[HUG#1835276]
OKMETIC OYJ'S INTERIM REPORT 1 JANUARY-30 JUNE 2014: STRONG DEMAND FOR SENSOR WAFERS GENERATED GOOD NET SALES GROWTH IN THE SECOND QUARTER
| Source: Okmetic Oyj
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