OKMETIC OYJ INTERIM REPORT 28 APRIL 2009 AT 1.00 PM
OKMETIC INTERIM REPORT 1 JANUARY - 31 MARCH 2009
Okmetic is a technology company that supplies customised silicon wafers for the
sensor and semiconductor industries and sells its technological expertise to the
solar energy industry. During the period under review, the company's net sales
amounted to 14.8 million euro (17.0 million euro). Profit for the period was 1.0
million euro (1.6 million euro). Earnings per share were 0.06 euro per share
(0.10 euro per share).
REVIEW IN BRIEF
- Net sales amounted to 14.8 million euro (17.0 million euro).
- Operating margin was 2.2 million euro (4.3 million euro).
- Operating profit was 0.5 million euro (2.5 million euro).
- Profit for the period was 1.0 million euro (1.6 million euro).
- Earnings per share were 0.06 euro per share (0.10 euro per share).
- Net cash flow from operations amounted to -0.5 million euro (2.3 million
euro).
- At the end of the period, the company´s cash and cash equivalents exceeded the
interest-bearing liabilities by 0.06 million euro (7.1 million euro lower).
- Sales of sensor wafers are on a par with 2008 levels, while sales of
semiconductor wafers have fallen substantially. Technology sales progressed
well.
- Net sales for the first half of the year 2009 are expected to amount
to around
29 million euro and operating profit around 1 million euro. Cash flow from
operating activities is estimated to be clearly positive.
- Majority of the company´s personnel in Finland are temporarily laid off from
one to six weeks in February-June 2009. Other costs will be adjusted to the
prevailing market situation.
KEY FIGURES
--------------------------------------------------------------------------------
| 1,000 euro | 1.1.-31 | 1.1.- | 1.1.- | 1.1.- | 1.1.- |
| | .3.09 | 31.3.08 | 31.12.08 | 31.12.07 | 31.12.06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 14,841 | 17,034 | 67,867 | 64,652 | 63,694 |
--------------------------------------------------------------------------------
| Operating margin | 2,241 | 4,312 | 15,517 | 15,216 | 18,363 |
--------------------------------------------------------------------------------
| Operating profit | 527 | 2,542 | 8,476 | 7,121 | 9,877 |
--------------------------------------------------------------------------------
| % net sales | 3.6 | 14.9 | 12.5 | 11.0 | 15.5 |
--------------------------------------------------------------------------------
| Profit for the | 1,001 | 1,640 | 5,825 | 5,305 | 6,886 |
| period | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.06 | 0.10 | 0.34 | 0.31 | 0.41 |
| euro | | | | | |
--------------------------------------------------------------------------------
| Net cash flow from | -496 | 2,281 | 13,177 | 8,305 | 17,945 |
| operating activities | | | | | |
--------------------------------------------------------------------------------
| Net gearing | -56 | 7,106 | -586 | 8,952 | 12,547 |
--------------------------------------------------------------------------------
| Average number of | 341 | 355 | 364 | 362 | 360 |
| personnel during the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
MARKETS
Customer industries
The global economy was undergoing a difficult period in early 2009, which had
repercussions on the industries supplied by Okmetic. The sensor market had
stopped growing by the end of 2008 and a moderate fall in demand was experienced
in the first months of 2009. The market situation in the semiconductor industry
was extremely weak in the first part of the year, leading to a notable fall in
sales of semiconductors compared to the previous year.
Silicon wafer industry
The difficult market situation for semiconductors also affected the demand for
silicon wafers. Production chain inventory levels were reduced. As a
consequence, deliveries of all semiconductor wafers fell significantly in the
first months of 2009 compared to the corresponding period a year ago.
Okmetic
Okmetic´s sales of sensor wafers remained at the same level as a year ago,
despite the difficult market situation. A significant fall was seen in sales of
semiconductor wafers as a result of the global market situation. Despite the
challenging market situation, Okmetic once again succeeded in increasing its
market share for the product groups that are crucial to the company. Okmetic´s
technology sales progressed well.
PROJECTIONS FOR THE NEAR FUTURE
FIRST HALF OF 2009
Silicon wafer industry
The general consensus in the industry is that the silicon wafer market reached
its lowest point in the first quarter. The market situation is expected to
remain poor in the second quarter. However, sensor and semiconductor
manufacturers have now started to replenish their wafer stocks in preparation
for partial normalisation of demand. This has brought about a gradual recovery
in wafer demand, although the second quarter delivery figures will still remain
significantly below 2008 levels.
Okmetic
Okmetic held co-determination redundancy talks with its personnel at the
beginning of the year and made the decision to lay off staff temporarily due to
the poor market situation, particularly in the semiconductor industry. The
lay-offs affect most of the company's 300-strong personnel in Finland. The
lay-offs are taking place between February and June. Depending on job
description, individuals will be laid off for between one and six weeks. The
United States subsidiary will take similar measures to adjust to lower demand.
The entire group will also adjust other costs to the existing market situation.
Net sales for the first half of 2009 are expected to amount to around 29 million
euro and operating profit around 1 million euro. Cash flow from operating
activities is estimated to be clearly positive.
YEAR 2009
Customer industries
In the sensor industry, growing demand is predicted at least for mobile phone
sensors, angular rate sensors used in driving systems and microphones, which are
all based on silicon-based MEMS technology. By the end of the year, annual
average sensor sales are expected to reach 2008 levels (Yole).
Total sales of semiconductors are expected to decrease significantly from 2008
levels. The demand for semiconductors will remain weak in the first half of the
year but in the second half, some growth is projected in comparison with the
first half. (IC Insights)
Growth forecasts for the solar energy industry in 2009 are strongly divided.
Uncertainty has been created by the general economic situation combined with
Spain's decision to restrict its support for the solar panel industry.
Silicon wafer industry
Total silicon wafer deliveries globally are projected to remain well below 2008
levels in 2009. All wafer types are affected. In sensor wafers, the demand for
SOI wafers is expected to continue to increase. In semiconductor wafers,
oversupply may lead to pressure on pricing.
SALES
Okmetic's net sales decreased by 12.9 percent from the previous year (declined
by 1.7%), amounting to 14.8 million euro (17.0 million euro). Decreasing net
sales at the end of 2008 followed on from the drastic downturn in the market
situation in the semiconductor industry in particular. The company´s share of
its customers´ wafer sourcing continued to increase.
Net sales per customer area
--------------------------------------------------------------------------------
| | 1.1.-31.3.09 | 1.1.- 31.3.08 | 1.1.- 31.12.08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sensor wafers | 38% | 34% | 37% |
--------------------------------------------------------------------------------
| Semiconductor wafers | 18% | 43% | 38% |
--------------------------------------------------------------------------------
| Technology | 44% | 23% | 25% |
--------------------------------------------------------------------------------
Okmetic's performance in the sensor market developed according to objectives.
The use of sensors is expected to continue its increase. Sensor applications are
rapidly becoming more popular in cameras and other consumer electronics
products, for example, in addition to the automotive industry and other
traditional applications.
The drop in the share of semiconductor sales is due to the weak market
situation. The most typical uses of semiconductor wafers include consumer
electronics, information technology, telecommunications and the automotive
industry.
Technology sales progressed well. Technology sales comprise not just
manufacturing technology but also crystal sales and occasional polysilicon
recycling. The fluctuations in sales volume percentages per customer area and
market area are due to the nature of technology sales and irregular income
recognition schedule.
Net sales per market area
--------------------------------------------------------------------------------
| | 1.1.-31.3.09 | 1.1.- 31.3.08 | 1.1.- 31.12.08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| North America | 36% | 40% | 39% |
--------------------------------------------------------------------------------
| Europe | 39% | 42% | 33% |
--------------------------------------------------------------------------------
| Asia | 25% | 18% | 28% |
--------------------------------------------------------------------------------
The exchange rates of the US dollar and Japanese yen against the euro have an
effect on the way net sales are distributed between different market areas.
PFOFITABILITY
Okmetic group´s profit for the period was 1.0 million euro (1.6 million euro).
Earnings per share amounted to 0.06 euro (0.10 euro). The company's profits were
burdened by the low operating rate resulting from the market situation in
semiconductor wafers. Profits are also suffering as a result of the lower
recycling price received for silicon in the current market situation.
FINANCING AND INVESTMENTS
The group´s financial situation is good. The group´s cash and cash equivalents
exceeded the interest-bearing liabilities by 0.06 million euro. The net cash
flow from operating activities amounted to -0.5 million euro (2.3 million euro).
The cash flow from operating activities in 2009 will be significantly burdened
by the massive repayment of accounts payable in the first months of the year.
A total of 0.8 million euro was invested in refurbishing production equipment.
The company made a profit of 0.6 million euro from the sale of used machinery.
In April, the company distributed a dividend of 0.8 million euro of the profit
accrued in 2008.
At the end of the period, cash and cash equivalents amounted to 17.4 million
euro (15.1 million euro). Return on equity amounted to 7.9 percent (14.2%). The
group´s equity ratio strengthened, amounting to 65.4 percent (57.4%).
Shareholders´ equity per share amounted to 3.06 euro (2.76 euro).
PRODUCT DEVELOPMENT
The company invested 0.6 million euro (0.5 million euro) in long-term product
development projects during the financial period. Product development accounted
for 3.9 percent (3.0%) of the net sales. Okmetic engaged in several strategic
research projects. R&D work focused on sensor wafers which are important to
Okmetic.
PERSONNEL
On average, Okmetic employed 341 people (355). At the end of the period, 304 of
the group's employees worked in Finland, 31 in the US and three in Japan.
BUSINESS RISKS
Okmetic's silicon wafer sales are targeted at the sensor and semiconductor
industries, which are affected by the global market situation. 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
significantly more stable and sales of sensor wafers are developing favourably.
The success of the sales strategy hinges on trouble-free contract manufacturing.
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 the company's
products. The majority of sales are conducted in US dollars. The Japanese yen is
another notable trading currency. Despite hedging, the company remains exposed
to exchange rate fluctuations.
Great volumes of electricity are used in Okmetic's production. The massive
electricity hedging measures will have an impact on the result for the period if
the price of electricity changes significantly.
SHARE PRICE DEVELOPMENT AND TRADING
A total of 1.1 million shares (2.2 million shares) were traded between 1 January
and 31 March 2009, representing 6.6 percent (12.8%) of the share total of 16.9
million. The lowest quotation of the period was 1.81 euro (2.20 euro) and the
highest was 2.98 euro per share (3.14 euro), with an average of 2.16 euro (2.63
euro). The closing quotation for the period was 2.00 euro (2.48 euro). The total
market value of the share capital amounted to 33.8 million euro at the end of
the financial period (41.9 million euro).
OWN SHARES
The company has not redeemed its own shares.
AUTHORISATION OF THE BOARD OF DIRECTORS TO DECIDE ON REPURCHASING THE COMPANY´S
OWN SHARES
The extraordinary general meeting held on 6 November 2008 authorised the board
of directors to decide on repurchasing the company's own shares as follows. The
aggregate number of shares repurchased on the basis of the authorisation cannot
exceed 1,688,750 shares, which represents 10 percent of all the shares of the
company.
Only unrestricted shareholders' equity can be used to repurchase the company's
own shares under the authorisation. Own shares can be repurchased at a price
determined by public trading on the day of repurchase or at another market-based
price. The authorisation will remain in force until the annual general meeting
of spring 2010, although in any case not past 6 May 2010.
AUTHORISATION OF THE BOARD OF DIRECTORS TO DECIDE ON TRANSFERRING RIGHTS TO THE
COMPANY´S OWN SHARES
The extraordinary general meeting held on 6 November 2008 authorised the board
of directors to decide on transferring rights to the company's own shares as
follows. The aggregate number of rights transferred on the basis of the
authorisation cannot exceed 1,688,750 shares, which represents 10 percent of all
the shares of the company. The authorisation will remain in force until further
notice, although in any case not past 30 June 2013.
AUTHORITY OF THE BOARD OF DIRECTORS TO INCREASE SHARE CAPITAL
The annual general meeting held on 2 April 2009 authorised the board of
directors to decide on increasing the company´s share capital. The aggregate
number of shares issued on the basis of the authorisation cannot exceed
3,377,500 shares, which represents approximately 20 percent of all the shares of
the company.
The board of directors was authorised to decide on all the terms and conditions
concerning the issue of shares and other share entitlements. The authorisation
relates to the issuance of new shares. Issuance of shares and other share
entitlements can be carried out as a directed issue. The authorisation is
effective until the following annual general meeting.
The board has not take advantage of the authorisations by 28 April 2009.
CONVERTIBLE BONDS AND OPTION PROGRAMMES
Okmetic has no convertible bonds or option programmes at the moment.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING AND ORGANISATION OF THE BOARD OF
DIRECTORS
Okmetic´s annual general meeting, which was held on 2 April 2009, adopted the
financial statements for 2008 and discharged the members of the board of
directors and the president from liability. It was decided to distribute a
dividend of 0.05 euro per share for the year 2008. The dividend was paid on
Thursday, 16 April 2009. Moreover, the annual general meeting approved of the
board of directors' proposal regarding the board's rights to increase share
capital.
It was decided that there would be five members on the company's board of
directors. Karri Kaitue, Tapani Järvinen, Pekka Salmi and Henri Österlund were
re-elected as members of the board of directors until the end of the next annual
general meeting, and Hannu Martola, CEO of Detection Technology Oy, was elected
as a new member. The board of directors elected Henri Österlund as its chairman
and Karri Kaitue as its deputy chairman in its organisation meeting held
immediately after the annual general meeting. The annual general meeting
confirmed the current annual fees to the members of the board of directors as
follows: chairman 34,800 euro, deputy chairman 26,100 euro, and other board
members 17,400 euro.
Authorised Public Accountant PricewaterhouseCoopers Oy was elected as auditor,
with APA Markku Marjomaa having the principal responsibility. The fee for the
auditor will be paid according to reasonable invoice.
The proposal by the board of directors to authorise the board to increase share
capital as set out above was ratified at the annual general meeting.
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 31 MARCH 2009 (unaudited)
These interim financial statements have been prepared in accordance with IAS 34
standard.
In preparing these interim financial statements, Okmetic has followed the same
accounting policies as in the financial statements for 2008 except that the
company has adopted the following new or revised standards as of 1 January 2009:
- IAS 1, Presentation of Financial Statements - amendment
- IFRS 8, Operating Segments
The amendment to IAS 1 affects the way the income statement and changes in
shareholders' equity are presented. The amendment to IFRS 8 does not affect the
information presented for individual segments, because the segment data provided
by the group have always been based on the group's internal reporting structure.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
| 1,000 euro | Jan 1- | Jan 1- | Jan 1- |
| | Mar 31, | Mar 31, | Dec 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 14,841 | 17,034 | 67,867 |
--------------------------------------------------------------------------------
| Cost of sales | -12,420 | -12,571 | -50,687 |
--------------------------------------------------------------------------------
| Gross profit | 2,421 | 4,462 | 17,180 |
--------------------------------------------------------------------------------
| Other income and expenses | -1,894 | -1,920 | -8,704 |
--------------------------------------------------------------------------------
| Operating profit | 527 | 2,542 | 8,476 |
--------------------------------------------------------------------------------
| Financial income and expenses | 291 | -908 | -2,900 |
--------------------------------------------------------------------------------
| Profit before tax | 818 | 1,634 | 5,576 |
--------------------------------------------------------------------------------
| Income tax | 184 | 5 | 248 |
--------------------------------------------------------------------------------
| Profit for the period | 1,001 | 1,640 | 5,825 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income: | | | |
--------------------------------------------------------------------------------
| Translation differences | 246 | -358 | 560 |
--------------------------------------------------------------------------------
| Available for sale financial assets | - | -321 | 114 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income for the | 246 | -679 | 674 |
| year, net of tax | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income for the | 1,247 | 961 | 6,499 |
| year | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period attributable | | | |
| to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 1,001 | 1,640 | 5,825 |
| company | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | | | |
| attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 1,247 | 961 | 6,499 |
| company | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic and diluted earnings per | 0.06 | 0.10 | 0.34 |
| share, euro | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| 1,000 euro | Mar 31, | Mar 31, | Dec 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 38,480 | 41,396 | 38,848 |
--------------------------------------------------------------------------------
| Available-for-sale financial assets | - | 2,119 | - |
--------------------------------------------------------------------------------
| Other receivables | 4,650 | 5,161 | 4,619 |
--------------------------------------------------------------------------------
| Total non-current assets | 43,130 | 48,676 | 43,468 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 8,504 | 7,892 | 10,753 |
--------------------------------------------------------------------------------
| Receivables | 10,085 | 10,143 | 9,289 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 17,410 | 15,097 | 17,975 |
--------------------------------------------------------------------------------
| Total current assets | 35,999 | 33,132 | 38,016 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 79,129 | 81,808 | 81,484 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity | | | |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital | 11,821 | 11,821 | 11,821 |
--------------------------------------------------------------------------------
| Other equity | 39,815 | 34,789 | 38,568 |
--------------------------------------------------------------------------------
| Total equity | 51,637 | 46,610 | 50,389 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 13,854 | 18,566 | 14,027 |
--------------------------------------------------------------------------------
| Current liabilities | 13,638 | 16,632 | 17,068 |
--------------------------------------------------------------------------------
| Total liabilities | 27,492 | 35,198 | 31,095 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 79,129 | 81,808 | 81,484 |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| 1,000 euro | Jan 1- | Jan 1- | Jan 1- |
| | Mar 31, | Mar 31, | Dec 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from operating | | | |
| activities: | | | |
--------------------------------------------------------------------------------
| Profit before tax | 818 | 1,634 | 5,576 |
--------------------------------------------------------------------------------
| Adjustments | 1,454 | 2,797 | 11,272 |
--------------------------------------------------------------------------------
| Change in working capital | -2,960 | -1,928 | -2,935 |
--------------------------------------------------------------------------------
| Interest received | 83 | 113 | 424 |
--------------------------------------------------------------------------------
| Interest paid and other financial | 110 | -326 | -1,135 |
| items | | | |
--------------------------------------------------------------------------------
| Tax paid | - | -9 | -26 |
--------------------------------------------------------------------------------
| Net cash from operating activities | -496 | 2,281 | 13,177 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from investing | | | |
| activities: | | | |
--------------------------------------------------------------------------------
| Proceeds from investing activities | 641 | - | 469 |
--------------------------------------------------------------------------------
| Capital expenditure | -793 | -331 | -2,646 |
--------------------------------------------------------------------------------
| Net cash used in investing | -152 | -331 | -2,177 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing | | | |
| activities: | | | |
--------------------------------------------------------------------------------
| Repayments of long-term borrowings | - | - | -4,748 |
--------------------------------------------------------------------------------
| Payments of finance lease | -37 | -58 | -198 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | - | - | -1,689 |
--------------------------------------------------------------------------------
| Net cash used in financing | -37 | -58 | -6,634 |
| activities | | | |
--------------------------------------------------------------------------------
| Increase (+) / decrease (-) | -685 | 1,892 | 4,365 |
| in cash and cash equivalents | | | |
--------------------------------------------------------------------------------
| Exchange rate changes | 121 | -103 | 301 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 17,975 | 13,308 | 13,308 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 17,410 | 15,097 | 17,975 |
| end of the period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
| | Equity attributable to equity holders of parent company |
--------------------------------------------------------------------------------
| 1,000 euro | Share | Share | Transla | Fair | Retained | Total |
| | capital | premium | tion | value | earnings | equity |
| | | | differ- | reserve | | |
| | | | rences | | | |
--------------------------------------------------------------------------------
| Balance at | 11,821 | 20,115 | 635 | - | 17,818 | 50,389 |
| 31 Dec 2008 | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 246 | - | 1,001 | 1,247 |
| comprehensiv | | | | | | |
| e income for | | | | | | |
| the year | | | | | | |
--------------------------------------------------------------------------------
| Balance at | 11,821 | 20,115 | 881 | - | 18,819 | 51,637 |
| 31 Mar 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 11,821 | 20,185 | 75 | -114 | 13,682 | 45,649 |
| 31 Dec 2007 | | | | | | |
--------------------------------------------------------------------------------
| Total | | | -358 | -321 | 1,640 | 961 |
| comprehensiv | | | | | | |
| e income for | | | | | | |
| the year | | | | | | |
--------------------------------------------------------------------------------
| Balance at | 11,821 | 20,185 | -283 | -435 | 15,321 | 46,610 |
| 31 Mar 2008 | | | | | | |
--------------------------------------------------------------------------------
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
--------------------------------------------------------------------------------
| 1,000 euro | Jan 1 - | Jan 1 - | Jan 1 - |
| | Mar 31, | Mar 31, | Dec 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Carrying amount at the | 38,848 | 43,355 | 43,355 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Additions | 1,046 | 225 | 2,773 |
--------------------------------------------------------------------------------
| Disposals | - | - | -537 |
--------------------------------------------------------------------------------
| Depreciation and | -1,713 | -1,770 | -7,041 |
| impairments | | | |
--------------------------------------------------------------------------------
| Exchange differences | 299 | -414 | 298 |
--------------------------------------------------------------------------------
| Carrying amount at the end | 38,480 | 41,396 | 38,848 |
| of the period | | | |
--------------------------------------------------------------------------------
CHANGES IN FINANCIAL LIABILITIES
--------------------------------------------------------------------------------
| 1,000 euro | Jan 1- | Jan 1- | Jan 1 - |
| | Mar 31, | Mar 31, 2008 | Dec 31, |
| | 2009 | | 2008 |
--------------------------------------------------------------------------------
| Carrying amount at the beginning | 17,389 | 22,259 | 22,259 |
| of the period | | | |
--------------------------------------------------------------------------------
| Proceeds of loans from financial | - | - | 999 |
| institutions | | | |
--------------------------------------------------------------------------------
| Repayments of loans from financial | - | - | -4,744 |
| institutions | | | |
--------------------------------------------------------------------------------
| Repayments of subordinated loans | - | - | -928 |
--------------------------------------------------------------------------------
| Changes in finance lease | -35 | -56 | -198 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Carrying amount at the end of the | 17,354 | 22,203 | 17,389 |
| period | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| 1,000 euro | Mar 31, | Mar 31, | Dec 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans secured with collaterals | 13,333 | 15,667 | 13,333 |
--------------------------------------------------------------------------------
| Collaterals | 24,964 | 29,001 | 24,964 |
--------------------------------------------------------------------------------
| Off-balance sheet lease commitments | 129 | 222 | 165 |
--------------------------------------------------------------------------------
| Capital commitments | 259 | - | 574 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Currency forward agreements | 1,952 | - | - |
--------------------------------------------------------------------------------
| Currency options, call | - | 2,787 | - |
--------------------------------------------------------------------------------
| Electricity derivatives | 2,859 | 2,144 | 2,961 |
--------------------------------------------------------------------------------
| Interest rate swaps | 7,071 | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of derivative contracts | | | |
--------------------------------------------------------------------------------
| Currency forward agreements | 73 | - | - |
--------------------------------------------------------------------------------
| Currency options, call | - | 251 | - |
--------------------------------------------------------------------------------
| Electricity derivatives | -808 | 168 | -540 |
--------------------------------------------------------------------------------
| Interest rate swaps | -23 | - | - |
--------------------------------------------------------------------------------
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 300
thousand euro (381 thousand euro).
KEY FIGURES SHOWING FINANCIAL PERFORMANCE
--------------------------------------------------------------------------------
| 1,000 euro | Jan 1- | Jan 1- | Jan 1- |
| | Mar 31, | Mar 31, | Dec 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 14,841 | 17,034 | 67,867 |
--------------------------------------------------------------------------------
| Change in net sales compared to the | -12.9 | -1.7 | 5.0 |
| previous year´s period, % | | | |
--------------------------------------------------------------------------------
| Export and foreign operations | 95.5 | 95.9 | 95.6 |
| share of net sales, % | | | |
--------------------------------------------------------------------------------
| Operating margin | 2,241 | 4,312 | 15,517 |
--------------------------------------------------------------------------------
| % of net sales | 15.1 | 25.3 | 22.9 |
--------------------------------------------------------------------------------
| Operating profit | 527 | 2,542 | 8,476 |
--------------------------------------------------------------------------------
| % of net sales | 3.6 | 14.9 | 12.5 |
--------------------------------------------------------------------------------
| Profit before tax | 818 | 1,634 | 5,576 |
--------------------------------------------------------------------------------
| % of net sales | 5.5 | 9.6 | 8.2 |
--------------------------------------------------------------------------------
| Return on equity, % | 7.9 | 14.2 | 12.1 |
--------------------------------------------------------------------------------
| Return on investment, % | 6.1 | 12.9 | 9.9 |
--------------------------------------------------------------------------------
| Non-interest bearing liabilities | 10,138 | 12,995 | 13,707 |
--------------------------------------------------------------------------------
| Net gearing ratio, % | -0.1 | 15.2 | -1.2 |
--------------------------------------------------------------------------------
| Equity ratio, % | 65.4 | 57.4 | 62.8 |
--------------------------------------------------------------------------------
| Capital expenditure | 1,046 | 225 | 2,773 |
--------------------------------------------------------------------------------
| % of net sales | 7.0 | 1.3 | 4.1 |
--------------------------------------------------------------------------------
| Depreciation | 1,713 | 1,770 | 7,041 |
--------------------------------------------------------------------------------
| Research and development | 574 | 507 | 2,261 |
| expenditure 1) | | | |
--------------------------------------------------------------------------------
| % of net sales | 3.9 | 3.0 | 3.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of personnel during | 341 | 355 | 364 |
| the period | | | |
--------------------------------------------------------------------------------
| Personnel at the end of the period | 338 | 359 | 363 |
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
| Euro | Mar 31, | Mar 31, | Dec 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share basic and | 0.06 | 0.10 | 0.34 |
| diluted | | | |
--------------------------------------------------------------------------------
| Equity per share | 3.06 | 2.76 | 2.98 |
--------------------------------------------------------------------------------
| Dividend per share | - | - | 0.05 |
--------------------------------------------------------------------------------
| Dividends/earnings, % | - | - | 14.5 |
--------------------------------------------------------------------------------
| Effective dividend yield, % | - | - | 2.1 |
--------------------------------------------------------------------------------
| Price/earnings (P/E) | 33.7 | 25.5 | 7.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share price performance (Jan 1 -) | | | |
--------------------------------------------------------------------------------
| Average trading price | 2.16 | 2.63 | 2.63 |
--------------------------------------------------------------------------------
| Lowest trading price | 1.81 | 2.20 | 2.15 |
--------------------------------------------------------------------------------
| Highest trading price | 2.98 | 3.14 | 3.14 |
--------------------------------------------------------------------------------
| Trading price at the end of the | 2.00 | 2.48 | 2.40 |
| period | | | |
--------------------------------------------------------------------------------
| Market capitalisation at the end of | 33,775 | 41,881 | 40,530 |
| the period, 1 000 euro | | | |
--------------------------------------------------------------------------------
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| Trading volume (Jan 1 -) | | | |
--------------------------------------------------------------------------------
| Trading volume, transactions | 1,122,059 | 2,164,907 | 8,355,374 |
--------------------------------------------------------------------------------
| In relation to weighted average | 6.6 | 12.8 | 49.5 |
| number of shares, % | | | |
--------------------------------------------------------------------------------
| Trading volume, euro | 2,426,463 | 5,689,188 | 22,002,739 |
--------------------------------------------------------------------------------
| The weighted average number of | 16,887,500 | 16,887,500 | 16,887,500 |
| shares during the period under | | | |
| review adjusted by the share issue | | | |
--------------------------------------------------------------------------------
| The number of shares at the end of | 16,887,500 | 16,887,500 | 16,887,500 |
| the period adjusted by the share | | | |
| issue | | | |
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QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| | 10-12/09 | 7-9/09 | 4-6/09 | 1-3/09 |
--------------------------------------------------------------------------------
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| Net sales | | | | 14,841 |
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| Compared to previous quarter % | | | | -5.8 |
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| Operating profit | | | | 527 |
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| % of net sales | | | | 3.6 |
--------------------------------------------------------------------------------
| Profit before tax | | | | 818 |
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| % of net sales | | | | 5.5 |
--------------------------------------------------------------------------------
| Net cash flow generated from: | | | | |
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| Operating activities | | | | -496 |
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| Investing activities | | | | -152 |
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| Financing activities | | | | -37 |
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| Increase/decrease in cash and | | | | -685 |
| cash equivalents | | | | |
--------------------------------------------------------------------------------
| Personnel at the end of the | | | | 338 |
| period | | | | |
--------------------------------------------------------------------------------
| | 10-12/08 | 7-9/08 | 4-6/08 | 1-3/08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 15,751 | 18,090 | 16,992 | 17,034 |
--------------------------------------------------------------------------------
| Compared to previous quarter % | -12.9 | 6.5 | -0.2 | 7.9 |
--------------------------------------------------------------------------------
| Operating profit | 1,108 | 2,089 | 2,737 | 2,542 |
--------------------------------------------------------------------------------
| % of net sales | 7.0 | 11.5 | 16.1 | 14.9 |
--------------------------------------------------------------------------------
| Profit before tax | -1,323 | 2,683 | 2,582 | 1,634 |
--------------------------------------------------------------------------------
| % of net sales | -8.4 | 14.8 | 15.2 | 9.6 |
--------------------------------------------------------------------------------
| Net cash flow generated from: | 2,878 | 4,522 | 3,495 | 2,281 |
| Operating activities | | | | |
--------------------------------------------------------------------------------
| Investing activities | -716 | -289 | -841 | -331 |
--------------------------------------------------------------------------------
| Financing activities | -1,912 | -48 | -4,616 | -58 |
--------------------------------------------------------------------------------
| Increase/decrease in cash and | 250 | 4,185 | -1,962 | 1,892 |
| cash equivalents | | | | |
--------------------------------------------------------------------------------
| Personnel at the end of the | 363 | 361 | 370 | 359 |
| period | | | | |
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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, % | = | 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 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 | = | 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 in this interim report bulletin are based on
company management´s current knowledge. Actual events and results may differ
from the estimates presented here.
OKMETIC OYJ
Board of directors
For further information, please contact:
President Antti Rasilo, Okmetic Oyj
tel. +358 40 746 1351, email: antti.rasilo@okmetic.com
Senior Vice President, Finance Esko Sipilä, Okmetic Oyj,
tel. +358 9 5028 0286, email: esko.sipila@okmetic.com
Distribution:
NASDAQ OMX Helsinki
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 to the
solar energy industry. 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.
