OKMETIC OYJ STOCK EXCHANGE RELEASE 23 OCTOBER 2014 AT 8.00 A.M.
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2014: STRONG THIRD QUARTER DUE TO SOLID
DEMAND FOR SENSOR WAFERS
Unless otherwise stated, figures in parenthesis refer to the corresponding
period in the previous year.
JULY-SEPTEMBER IN BRIEF:
- Net sales amounted to 19.3 (18.2) million euro, up 5.9%.
- Silicon wafer shipments amounted to 17.5 (17.8) million euro, down 1.3%.
- Operating profit was 2.8 (1.4) million euro, corresponding to 14.3% (7.8%) of
net sales.
- Profit for the period was 2.2 (0.8) million euro.
- Basic earnings per share was 0.13 (0.05) euro.
- Net cash flow from operations amounted to 3.6 (3.5) million euro.
JANUARY-SEPTEMBER IN BRIEF:
- Net sales amounted to 55.4 (51.7) million euro, up 7.2%.
- Silicon wafer shipments amounted to 52.9 (50.2) million euro, up 5.4%.
- Operating profit was 4.8 (4.8) million euro, corresponding to 8.7% (9.2%) of
net sales.
- Profit for the period was 3.7 (3.4) million euro.
- Basic earnings per share was 0.22 (0.20) euro.
- Net cash flow from operations amounted to 6.2 (4.8) million euro.
SHORT-TERM OUTLOOK
The demand for semiconductors is expected to grow in 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 demanding sensor wafers is estimated to grow year-on-
year in 2014, and the price level 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 somewhat in 2014 compared to 2013.
Other business sales are not expected to materially differ from the low level of
year 2013.
In the fourth quarter, the demand for silicon wafers is expected to be lower
than in the second and third quarters of the year, in accordance with normal
seasonal fluctuation.
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:
"The strong sales trend of strategically important sensor wafers continued in
January-September, as the shipments grew by 12.3 percent from the comparison
period. The demand for sensor wafers was particularly strong in Europe. Sales
grew in all of the company's main market areas excluding Japan. Sensor wafer
development has been in line with the long-term growth target as redefined in
the Capital Markets Day at the end of September. In contrast, the demand for
semiconductor wafers has clearly been weaker in 2014 in relation to the
corresponding period last year.
The third quarter is traditionally the peak demand season for Okmetic's
products. Operating profit, 2.8 million euro, strengthened notably in July-
September both quarter-on-quarter (1.1 million euro in Q2 2014) and year-on-year
(1.4 million euro in Q3 2013). The increase in profitability was driven by the
sales of high value added products that is growing in line with Okmetic's
strategy. In the third quarter, also the strengthening of the US dollar as well
as non-operational income in the United States (0.3 million euro) improved
operating profit. Operating profit in the third quarter of last year was
burdened by non-operational items (0.6 million euro).
When assessing profitability of the business it is worth noticing that
depreciation grew by 0.7 million euro in January-September. Operating profit
before depreciation was 9.7 (9.0) million euro in January-September. Net cash
flow from operating activities, 6.2 million euro, was at a good level in
January-September considering the extra polysilicon inventory tied up in working
capital. The company's working capital is up as a result of a higher raw
material inventory, which has grown due to the polysilicon purchasing contracts.
With the growing of solar crystals based on own raw material now ended, this
inventory is being released. A reduction in working capital is not expected
until the expiration of the long-term contracts at the end of 2015.
The ongoing annual contract negotiations as well as new customerships and
customer qualifications indicate a continuing positive trend in sensor wafers
for next year. Meanwhile, in semiconductor wafers, prices will remain under
pressure."
KEY FIGURES
1,000 euro 1 Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec
2014 2013 2014 2013 2013
Net sales 19,320 18,242 55,425 51,680 68,516
Operating profit
before
depreciation
(EBITDA) 4,420 2,921 9,745 9,024 10,905
Operating profit 2,757 1,423 4,822 4,768 5,031
% of net sales 14.3 7.8 8.7 9.2 7.3
Profit for
the period 2,219 816 3,749 3,395 3,842
Basic earnings
per share,
euro 0.13 0.05 0.22 0.20 0.23
Net cash flow
from operating
activities 3,644 3,481 6,209 4,811 9,726
Net interest-
bearing
liabilities 4,174 6,196 4,174 6,196 6,530
Equity ratio, % 70.6 70.5 70.6 70.5 68.2
Average number
of personnel
during the period 379 369 371 366 363
MARKETS
Customer industries sensor and semiconductor industry
Sensor industry
The increasing use of micro sensors in many consumer electronics and automotive
industry products has accelerated sensor sales growth. In 2014, the sale value
of sensor industry is estimated to grow by 6-11 percent. In terms of volume,
sensor shipments are likely to clearly reach a new record in 2014, too. (IHS,
Yole)
Semiconductor industry
In the third quarter of 2014, the sales of the global semiconductor industry in
US dollars continued to grow. In January to August, the sales grew by 10 percent
from the corresponding period last year (SIA). For the whole year 2014, the
growth estimates have settled between 6.5 and 9.8 percent (WSTS, Gartner,
Cowan). Almost all product areas contributed to continued semiconductor sales
growth, especially tablet computers (SIA, Gartner).
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 10 percent year-on-year in the first half of 2014. For the whole
year 2014, SEMI forecasts 7 percent growth, which would break the record in the
yearly volume of silicon wafer shipments. 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 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 the third quarter, net sales grew by 5.9 percent year-on-year and amounted to
19.3 (18.2) million euro. In January-September, net sales grew by 7.2 percent
from the comparison period and amounted to 55.4 (51.7) million euro. Sensor
wafer shipments increased whereas semiconductor wafer shipments diminished from
last year in both periods. There have been no significant changes in the market
positions of Okmetic in the product groups important to the company.
Sales per customer area
1 Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec,
2014 2013 2014 2013 2013
Sensor wafers 61% 59% 63% 59% 59%
Semiconductor
wafers 34% 38% 34% 38% 37%
Other business 5% 3% 3% 3% 4%
The value of sensor wafer shipments grew by 12.3 percent year-on-year in
January-September. In the same period, the value of semiconductor wafer
shipments declined by 5.3 percent. In the third quarter, semiconductor wafer
shipments were, however, bigger than in the first and second quarters.
The value of Other business shipments amounted to 1.9 (1.7) million euro in
January-September.
Sales per market area
1 Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec,
2014 2013 2014 2013 2013
North America 37% 43% 38% 41% 42%
Europe 42% 41% 41% 40% 40%
Asia 21% 16% 21% 19% 18%
Regionally, most sales originated in Europe and North America.
PROFITABILITY
July-September
Okmetic's operating profit amounted to 2.8 (1.4) million euro, i.e. 14.3 (7.8)
percent of net sales in July-September.
The operating profit was favourably impacted by the strengthening of the US
dollar, the sale of a redundant lot at the Allen production site, 0.2 million
euro, as well as insurance claims paid out to the Allen plant, 0.1 million euro.
In the comparison period, operating profit was reduced by non-operational items
(0.6 million euro).
Profit for the period amounted to 2.2 (0.8) million euro. Basic earnings per
share was 0.13 (0.05) euro. Diluted earnings per share was 0.13 (0.05) euro.
January-September
In January-September, Okmetic's operating profit amounted to 4.8 (4.8) million
euro, i.e. 8.7 (9.2) percent of net sales. Profit for the period amounted to
3.7 (3.4) million euro. Basic earnings per share was 0.22 (0.20) euro. Diluted
earnings per share was 0.22 (0.20) euro.
FINANCING
The company's financial position is solid. In January-September, net cash flow
from operations amounted to 6.2 (4.8) million euro. The changes in working
capital tied up in operations weakened cash flow from operations by 2.7 (5.0)
million euro.
On 30 September 2014, the company's interest-bearing liabilities amounted to
14.5 (11.8) million euro. Okmetic issued a multi-issuer bond in June, due to
which interest-bearing liabilities increased 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 10.3
(5.6) million euro. On 30 September 2014, the company's net debt was 4.2 million
euro (on 30 September 2013, net debt amounted to 6.2 million euro).
The group has ensured liquidity with committed credit facilities of 6.0 million
euro. On 30 September 2014, the committed credit facilities were fully unused
(as well as on 30 September 2013).
Return on equity amounted to 8.4 (7.4) percent. The company's equity ratio was
70.6 (70.5) percent. Equity per share was 3.69 (3.67) euro.
INVESTMENTS
In January-September, Okmetic's capital expenditure amounted to 2.5 (5.8)
million euro. The investments were mainly for increasing capacity of 200mm
wafers at the Vantaa plant.
PRODUCT DEVELOPMENT
The company expensed 1.8 (1.9) million euro in product development projects in
January-September, corresponding to 3.2 (3.6) 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 371 (366) people in January-September. At the end
of the period, Okmetic had 363 (356) employees, of which 318 worked in Finland,
39 in the US, five in Japan, and one in Hong Kong.
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 September 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 September 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 2,876,684 16.6
Other 8,762,888 50.7
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 2.8 (2.2) million shares were traded between 1 January and 30
September 2014, representing 16.1 (12.9) 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 (5.55) euro, with
the average trading price being 4.67 (4.78) euro. The closing quotation for the
period was 4.95 (5.31) euro. At the end of the period, the market capitalisation
amounted to 85.6 (91.8) 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, of
which 400 000 shares through Okmetic Management Oy. The number of own shares
corresponds 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.
In connection with Okmetic's Capital Markets Day on 26 September 2014, the
company modified its long-term targets slightly as:
- Organic growth of sensor wafer business at 10 percent per annum or more
- Operating profit to account for 10 percent of net sales or more
This implies no explicit growth target for sales of other type of wafers, or
Other business.
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 30 SEPTEMBER 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 Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec,
2014 2013 2014 2013 2013
Net sales 19,320 18,242 55,425 51,680 68,516
Cost of sales -14,942 -14,594 -44,098 -40,536 -54,918
Gross profit 4,378 3,648 11,327 11,144 13,598
Other income
and expenses -1,621 -2,225 -6,505 -6,376 -8,567
Operating
profit 2,757 1,423 4,822 4,768 5,031
Financial
income and
expenses 49 -143 -28 -399 -630
Profit before
tax 2,806 1,280 4,794 4,369 4,401
Income tax -587 -464 -1,045 -974 -559
Profit for
the period 2,219 816 3,749 3,395 3,842
Other
comprehensive
income:
Items that may
be
reclassified
to profit or
loss in
subsequent
periods
Cash flow
hedges 16 100 17 -17 -58
Translation
differences 557 -323 566 -27 -60
Other
comprehensive
income for the
period, net of
tax 573 -224 584 -44 -118
Total
comprehensive
income for the
period 2,792 591 4,333 3,351 3,724
Profit for the
period
attributable
to:
Equity holders
of the parent
company 2,219 816 3,749 3,395 3,842
Total
comprehensive
income
attributable
to:
Equity holders
of the parent
company 2,792 591 4,333 3,351 3,724
Basic earnings
per share,
euro 0.13 0.05 0.22 0.20 0.23
Diluted
earnings per
share, euro 0.13 0.05 0.22 0.20 0.22
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro 30 Sep, 30 Sep, 31 Dec,
2014 2013 2013
Assets
Non-current assets
Property, plant and
equipment 42,864 45,038 45,295
Intangible assets 740 888 897
Other receivables 732 2,020 1,419
Total non-current
assets 44,335 47,945 47,611
Current assets
Inventories 17,748 17,893 16,634
Receivables 16,440 15,432 14,572
Cash and cash
equivalents 10,279 5,617 5,214
Total current
assets 44,467 38,941 36,420
Total assets 88,802 86,886 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 50,398 49,398 45,451
Total equity 62,219 61,219 57,273
Liabilities
Non-current
liabilities 13,407 12,804 10,533
Current liabilities 13,175 12,863 16,226
Total liabilities 26,583 25,667 26,759
Total equity and
liabilities 88,802 86,886 84,031
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 31 Dec,
2014 2013 2013
Cash flows from operating
activities:
Profit before tax 4,794 4,369 4,401
Adjustments 4,399 4,591 6,566
Change in working capital -2,697 -5,000 -2,091
Financial items -357 -121 -126
Tax paid 70 972 976
Net cash from
operating activities 6,209 4,811 9,726
Cash flows from investing
activities:
Purchases of property,
plant and equipment -3,335 -7,784 -9,089
Proceeds from sale of
property, plant and
equipment 696 - -
Net cash used in
investing activities -2,639 -7,784 -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 24 1,024
Payments of long-term
borrowings -2,000 -1,000 -1,000
Payments of short-term
borrowings -4,024 -3,043 -4,043
Payments of finance
lease liabilities -437 -349 -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 1,230 1,473 -2,419
Increase (+) /
decrease (-) in cash
and cash equivalents 4,799 -1,500 -1,782
Exchange rate changes 266 -171 -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 10,279 5,617 5,214
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to equity holders of parent company
Share Share Reserve Other Retained Total
capital pre-mium for invested reserves earnings
un-restricted 1)
1,000 euro equity
Balance at
31 Dec,
2013 11,821 20,045 3 1,756 23,647 57,273
Profit for
the period 3,749 3,749
Other com-
prehensive
income,
net of
tax:
Cash flow
hedges 17 17
Trans-
lation
differ-
ences 566 566
Total com-
prehensive
income for
the period 584 3,749 4,333
Share
issue 750 750
Share-
based
payments 221 221
Acquisi-
tion of
non-
control-
ling
interest -357 -357
Balance at
30 Sep,
2014 11,821 20,045 753 2,339 27,260 62,219
Balance at
31 Dec,
2012 11,821 20,045 1,200 1,874 26,919 61,860
Profit for
the period 3,395 3,395
Other com-
prehensive
income,
net
of tax:
Cash flow
hedges -17 -17
Trans-
lation
differ-
ences -27 -27
Total com-
prehensive
income for
the period -44 3,395 3,351
Share-
based
payments 178 178
Dividends
distribut-
ed -4,170 -4,170
Balance at
30 Sep,
2013 11,821 20,045 1,200 1,830 26,323 61,219
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 Sep, 30 Sep, 31 Dec,
2014 2013 2013
Carrying amount
at the beginning
of the period 45,295 43,433 43,433
Additions 2,465 5,777 7,648
Disposals -501 -9 -9
Depreciation -4,678 -4,080 -5,623
Exchange differences 283 -83 -154
Carrying amount
at the end of
the period 42,864 45,038 45,295
COMMITMENTS AND CONTINGENCIES
1,000 euro 30 Sep, 30 Sep, 31 Dec,
2014 2013 2013
Loans secured with
collaterals 8,000 10,000 10,000
Collaterals 17,128 17,128 17,128
Off-balance sheet
lease commitments 308 380 395
Capital commitments 1,902 2,112 1,910
Nominal values of
derivative contracts
Currency options, call 226 - 948
Currency options, put - - 182
Currency forward
agreements 1,631 903 1,144
Electricity derivatives 1,270 2,117 1,847
Fair values of
derivative contracts
Currency options, call 0 - 12
Currency options, put - - -1
Currency forward
agreements -77 15 20
Electricity derivatives -205 -173 -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 euro 30 Sep, 2014 30 Sep, 2013
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial
assets
Derivative
financial
instruments - 13 - - 38 -
Financial
liabilities
Derivative
financial
instruments - 296 - - 196 -
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 euro 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 31 Dec,
2014 2013 2013
Net sales 55,425 51,680 68,516
Change in net sales
compared to the previous
year's period, % 7.2 -17.2 -17.5
Export and foreign
operations share
of net sales, % 91.2 91.2 91.8
Operating profit before
depreciation (EBITDA) 9,745 9,024 10,905
% of net sales 17.6 17.5 15.9
Operating profit 4,822 4,768 5,031
% of net sales 8.7 9.2 7.3
Profit before tax 4,794 4,369 4,401
% of net sales 8.6 8.5 6.4
Return on equity, % 8.4 7.4 6.4
Return on investment, % 9.1 8.6 6.7
Non-interest-bearing
liabilities 12,129 13,855 15,014
Net interest-bearing
liabilities 4,174 6,196 6,530
Net gearing ratio, % 6.7 10.1 11.4
Equity ratio, % 70.6 70.5 68.2
Capital expenditure 2,465 5,777 7,648
% of net sales 4.4 11.2 11.2
Depreciation 4,923 4,256 5,874
Research and development
expenditure 1,801 1,876 2,779
% of net sales 3.2 3.6 4.1
Average number of
personnel during
the period 371 366 363
Personnel at the
end of the period 363 356 355
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 Sep, 30 Sep, 31 Dec,
2014 2013 2013
Basic earnings
per share 0.22 0.20 0.23
Diluted earnings
per share 0.22 0.20 0.22
Equity per share 3.69 3.67 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 4.67 4.78 4.92
Lowest trading price 4.38 4.25 4.25
Highest trading price 5.25 5.55 5.66
Trading price at the
end of the period 4.95 5.31 4.82
Market capitalisation
at the end of the
period, 1,000 euro 85,573 91,797 83,326
Trading volume,
transactions, 1,000 pcs 2,784 2,223 3,382
In relation to weighted
average number of
shares, % 16.1 12.9 19.6
Trading volume,
1,000 euro 13,048 10,620 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 19,320 18,700 17,405
Compared to previous
quarter, % 3.3 7.4 3.4
Compared to corresponding
period last year, % 5.9 9.8 6.1
Operating profit 2,757 1,137 928
% of net sales 14.3 6.1 5.3
Profit before tax 2,806 1,096 892
% of net sales 14.5 5.9 5.1
Net cash flow generated
from:
Operating activities 3,644 1,932 632
Investing activities 261 -1,263 -1,637
Financing activities -3,157 4,859 -472
Increase/decrease in cash
and cash equivalents 748 5,528 -1,477
Personnel at the end
of the period 363 393 354
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
of the period 355 356 379 354
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.
INTERIM REPORT BRIEFING
A briefing for investors, analysts and media will take place at Bank Meeting
Point, Unioninkatu 20, Helsinki (2nd floor) today Thursday, 23 October 2014 at
8.30 a.m. The result will be presented by President Kai Seikku. Welcome!
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 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 Helsinki under the code OKM1V. For more information
on the company, please visit our website at www.okmetic.com.
[HUG#1864809]
OKMETIC'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2014: STRONG THIRD QUARTER DUE TO SOLID DEMAND FOR SENSOR WAFERS
| Source: Okmetic Oyj
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