OKMETIC OYJ INTERIM REPORT 24 APRIL 2014 AT 8.00 A.M.
INTERIM REPORT 1 JANUARY - 31 MARCH 2014: NET SALES GROWING, STRONG DEMAND
ESPECIALLY FOR SENSOR WAFERS
Unless otherwise stated, figures in parenthesis refer to the corresponding
period in the previous year.
JANUARY-MARCH IN BRIEF:
* Net sales amounted to 17.4 (16.4) million euro, up 6.1%.
* Silicon wafer shipments amounted to 17.5 (15.5) million euro, up 13.0%.
* Operating profit was 0.9 (1.4) million euro, corresponding to 5.3% (8.4%) of
net sales.
* Profit for the period was 0.6 (1.2) million euro.
* Basic earnings per share was 0.04 (0.07) euro.
* Net cash flow from operations amounted to 0.6 (0.8) million euro.
SHORT-TERM OUTLOOK
The demand for semiconductors is expected to grow in year 2014. Also for the
silicon wafer market, volume growth is expected in 2014. However, the average
price level of wafers as well as the total value of the silicon wafer market is
expected to further decline.
Demand for Okmetic's sensor wafers is estimated to grow from the previous year,
and the sales and price levels of sensor wafers are expected to be fairly stable
throughout the year. Prices of semiconductor wafers are hit by the weakened
Japanese yen. 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 were up compared to the corresponding period last year. The
development of net sales was particularly positive in high value-added sensor
wafers, with a more than 17-percent rise in shipments from the corresponding
period in year 2013. Sensor wafers already accounted for 63 percent of net sales
for the quarter. Shipment volumes in semiconductor wafers were also up. Other
business accounted for only a marginal share of net sales in the first quarter.
Operating profit fell in comparison to the first quarter of 2013. Comparable
profitability in silicon wafers however improved. In the reporting period,
operating profit was negatively impacted by non-operating IFRS items, which in
the same period of last year had a significant positive impact on profit
performance. Moreover, Other business sales in the first and second quarters of
2013 included substantial income from polysilicon trading. This year, the
polysilicon trading, made for purposes of working capital management, is likely
to take place in the second and third quarters of 2014. Tentatively, the company
does not foresee a significant need for this kind of inventory adjustment
anymore in the fiscal year of 2015.
Strong demand and good margins in sensor wafers improved profitability in the
silicon wafer business. Semiconductor wafer sales also showed growth, but, as
anticipated, the sales margin fell clearly short of the average for 2013 due to
the lower price level. The Allen plant was loss-making at the beginning of the
year due to demand and inventory, and this further weighed on the quarterly
operating profit.
The healthy demand of the first quarter looks set to continue in the second and
third quarters. Okmetic is enjoying strong growth in sensor wafers, thanks to
investments made over a number of years. In the beginning of the year, the
company set a record in SOI wafer sales. As anticipated, there was also strong
growth in the share of 200-millimetre wafers in key customer segments during the
reporting period. To support this development, new in-house capacity for the
production of 200-millimetre wafers will be added in the second quarter.
In semiconductor wafer sales, Okmetic focuses on discrete and power
semiconductors where it possesses a high level of expertise and long-standing
client relationships. The current price level for these wafers is challenging,
but long-term prospects are promising. The applications for electric and hybrid
vehicles (e-mobility) and green energy will require semiconductor components for
power management, current control and energy saving. In addition to its focus on
sensor wafers, Okmetic will continue its commitment to serving the discrete and
power semiconductor industries by investing in product development and
production technology."
KEY FIGURES
1,000 euro 1 Jan- 1 Jan- 1 Jan- 1 Jan-
31 Mar 31 Mar 31 Dec 31 Dec
2014 2013 2013 2012
Net sales 17,405 16,403 68,516 83,074
Operating
profit
before
depreciation
(EBITDA) 2,546 2,725 10,905 13,864
Operating
profit 928 1,373 5,031 8,018
% of net sales 5.3 8.4 7.3 9.7
Profit for
the period 641 1,218 3,842 5,089
Basic earnings
per share,
euro 0.04 0.07 0.23 0.31
Net cash flow
from operating
activities 632 811 9,726 9,425
Net interest-
bearing
liabilities 8,898 2,003 6,530 -1,688
Equity ratio,% 68.4 67.3 68.2 72.2
Average number of personnel
during the period
355 358 363 368
MARKETS
Customer industries
Sensor industry
The sales value of sensor industry increased by 5.8 percent in 2013 compared to
the previous year. 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 7 percent, and annual growth of
5-13 percent is forecasted for the next few years. In terms of volume, sensor
shipments are likely to clearly rise to a new record in year 2014 too. (IHS,
Yole)
Semiconductor industry
The global semiconductor industry's sales in US dollars reached a new record in
the last quarter of 2013. For the whole year 2013, the sales were 4.2 percent
higher than in the previous year, and exceeded for the first time 300 billion US
dollars (303.5 billion USD, SIA). The prices of memory circuits turned into
growth, which had a positive impact on the market.
The sales volumes in January and February were clearly higher than in 2013 (+10%
on average), but according to the seasonal fluctuation typical of the industry,
monthly sales were approximately five percent lower than in November 2013
(SEMI).
The semiconductor market is expected to continue to grow moderately during
2014. The growth estimates for the whole year settle between 3 and 7 percent
(WSTS, Cowan, Digitimes, ICInsights), and the growth is expected to continue
also in the following years (IDC). Faster sales growth than market average is
forecasted for discrete and power semiconductors, which are important to Okmetic
(IC Insights, Infiniti Research).
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 in 2013 calculated in
square inches was 0.4 percent larger than in 2012. The total value of the
silicon wafer market in US dollars kept decreasing in 2013 due to declined
average sales prices and weakening of the Japanese yen. The volume of silicon
wafer shipments in January-February 2014 followed the trend in semiconductor
sales and exceeded the level of the corresponding period in 2013 (SMG).
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
discrete and power semiconductor production. 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-March, Okmetic's net sales amounted to 17.4 (16.4) million euro. Net
sales increased by 6.1 percent (decrease of 13.2%) compared to the corresponding
period last year, due to strong demand for sensor wafers. Okmetic's market share
remained stable in product groups important to the company, and sales improved
towards the end of the first quarter.
Sales per customer area
1 Jan- 1 Jan- 1 Jan- 1 Jan-
31 Mar 31 Mar, 31 Dec 31 Dec,
2014 2013 2013 2012
Sensor wafers 63% 60% 59% 47%
Semiconductor wafers 35% 37% 37% 38%
Other business 2% 3% 4% 15%
The demand for sensor wafers was very strong in January-March, and the value of
shipments was 17.5 percent higher than in the corresponding period last year.
Especially the demand for the strategically important SOI wafers was at a good
level. The demand for sensor wafers is estimated to remain solid throughout the
year 2014.
The semiconductor industry's demand shows signs of recovery, and the
semiconductor wafer sales as well grew in the first quarter. The value of
shipments in January-March was 5.6 percent higher than in the corresponding
period last year.
The value of Other business shipments amounted to 0.3 (0.6) million euro in
January-March.
Sales per market area
1 Jan- 1 Jan- 1 Jan- 1 Jan-
31 Mar, 31 Mar, 31 Dec, 31 Dec,
2014 2013 2013 2012
North America 37% 39% 42% 37%
Europe 40% 36% 40% 27%
Asia 23% 25% 18% 35%
In the first quarter, Okmetic's sales in Europe showed strong growth. Also in
North America the sales performed well. Sales in Asia were at the same level as
in the first quarter of 2013.
PROFITABILITY
January-March
In January-March, Okmetic's operating profit amounted to 0.9 (1.4) million euro,
corresponding to 5.3 (8.4) percent of net sales. The Allen plant had a negative
stand-alone result in January-February, which had a significant effect on the
group's operating profit, as did clearly higher depreciations than in the
comparison period. In addition, IFRS entries and polysilicon trading income in
2013 explain the difference to the comparison period.
Profit for the period was 0.6 (1.2) million euro. Basic earnings per share was
0.04 (0.07) euro. Diluted earnings per share was 0.04 (0.07) euro.
FINANCING
The company's financial position is solid. In January-March, net cash flow from
operations amounted to 0.6 (0.8) million euro. Changes in working capital tied
up in operations weakened net cash flow from operations by 2.0 (2.6) million
euro.
On 31 March 2014, the company's interest-bearing liabilities amounted to 12.6
(15.9) million euro.
At the end of the period, the cash and cash equivalents amounted to 3.7 (13.9)
million euro. On 31 March 2014, the company's net interest-bearing liabilities
amounted to 8.9 million euro (2.0 million euro on 31 March 2013). The increase
in net interest-bearing liabilities is due to the five-year loan agreement of
10 million euro, signed in January 2013. The loan is used for investments and
general corporate purposes. The group has ensured liquidity with committed
credit facilities of 6.0 million euro. On 31 March 2014, two million euro of the
committed credit facilities was in use.
Return on equity amounted to 4.4 (7.8) percent. The company's equity ratio was
68.4 (67.3) percent. Equity per share was 3.46 (3.80) euro.
INVESTMENTS
In January-March, Okmetic's capital expenditure amounted to 1.1 (2.6) million
euro. The investments in the first quarter were mainly made for increasing
capacity for 200mm wafers at the Vantaa plant.
PRODUCT DEVELOPMENT
In January-March, the company expensed 0.7 (0.6) million euro in product
development projects, corresponding to 3.9 (3.9) 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 products as well as developing crystal growing to
enhance capability in high and low resistivity products.
PERSONNEL
In January-March, Okmetic employed on average 355 (358) people. At the end of
the period, Okmetic employed 354 (354) people, of which 310 worked in Finland,
38 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 2015. Since
the price level of the solar cell market has dropped, the validity of long-term
polysilicon 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 with 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 are conducted in US dollars. Despite
hedging, the company remains exposed to exchange rate fluctuations.
Substantial volumes 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 31 March 2014, Okmetic Oyj's paid-up share capital, as entered in the Finnish
Trade Register, was 11,821,250.00 euro. The number of shares was 17,287,500. The
shares have no nominal value attached. Each share entitles its holder to one
vote at general meetings. The company has one class of shares. The company's
shares are included in the Finnish book-entry securities system.
Major shareholders on
31 March 2014
Shares, Share,
pcs %
Ilmarinen Mutual Pension
Insurance Company 1,549,985 9.0
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 *) 432,204 2.5
Etra-Invest Oy Ab 400,000 2.3
Investment Fund
Taaleritehdas Arvo Markka
Osake 225,100 1.3
Kaleva Mutual Pension Insurance Company 212,700 1.2
Foreign investors and
nominee accounts held by
custodian banks 2,898,603 16.8
Other 8,292,923 48.0
Total 17,287,500 100.0
*) of which 400,000 shares through Okmetic Management Oy
SHARE PRICE PERFORMANCE AND TRADING
A total of 1.1 (1.0) million shares were traded between 1 January and 31 March
2014, representing 6.4 (5.8) 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 (4.33 euro), and the highest 5.25 (5.15) euro, with the average being
4.75 (4.71) euro. The closing quotation for the period on 31 March 2014 was
4.55 (4.53) euro. At the end of the period, the market capitalisation amounted
to 78.7 (78.3) 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 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, which
was 4.9969 euro. Total value of the deal was 749,535 euro. The decision to
transfer company's own shares was based on authorization of the Board of
Directors given by the annual general meeting on 10 April 2013.
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. All the
shares were issued to the members of the executive management group in deviation
from the shareholders' pre-emptive rights (directed share issue). The rewards of
the share reward programme were paid in Okmetic shares and in a monetary amount
covering taxes. The directed share issue without payment was executed in full as
there was no consideration related to the issue.
At the end of the reporting period Okmetic held 432,204 (209,406) own shares, of
which 400 000 shares through Okmetic Management Oy. The number of own shares
corresponds to 2.5 (1.2) percent of Okmetic's all shares and votes.
More information relating to own shares and directed share issues can be found
on the company website www.okmetic.com > Investors > Share information > Own
shares.
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 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. There were no
shareholders of Okmetic Management Oy in the Board of Directors of Okmetic Oyj.
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.
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, 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, Senior Vice President, Customer Support, was appointed Senior
Vice President, Products from 7 April 2014.
EVENTS AFTER THE END OF THE INTERIM PERIOD
Annual general meeting on 9 April 2014
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. The annual general meeting decided, in
accordance with the proposal of the board of directors that no dividend shall be
distributed for the financial year 2013. Moreover, the general meeting approved
the proposal of the board of directors to authorise the board of directors 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 will 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 new board member until the end of the next annual
general meeting. 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 have been disclosed in a stock exchange release published on 9
April 2014.
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 31 MARCH 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 IFRS
standards and IFRIC 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 Jan- 1 Jan- 1 Jan-
31 Mar, 31 Mar, 31 Dec,
2014 2013 2013
Net sales 17,405 16,403 68,516
Cost of sales -14,072 -13,118 -54,918
Gross profit 3,333 3,285 13,598
Other income
and expenses -2,405 -1,911 -8,567
Operating 928 1,373 5,031
profit
Financial
income and
expenses -36 -97 -630
Profit before
tax 892 1,277 4,401
Income tax -251 -58 -559
Profit for
the period 641 1,218 3,842
Other
comprehensive
income:
Items that may
be
reclassified
to profit or
loss in
subsequent
periods
Cash flow
hedges -20 -47 -58
Translation
differences -3 316 -60
Other
comprehensive
income for the
period, net of
tax -23 269 -118
Total
comprehensive
income for
the period 618 1,487 3,724
Profit for the
period
attributable
to:
Equity holders
of the parent
company 641 1,218 3,842
Total
comprehensive
income
attributable
to:
Equity holders
of the parent
company 618 1,487 3,724
Basic earnings
per share,
euro 0.04 0.07 0.23
Diluted
earnings per
share, euro 0.04 0.07 0.22
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro 31 Mar, 31 Mar, 31 Dec,
2014 2013 2013
Assets
Non-current assets
Property, plant and
equipment 44,827 44,819 45,295
Intangible assets 881 739 897
Other receivables 1,420 2,712 1,419
Total non-current
assets 47,128 48,270 47,611
Current assets
Inventories 17,898 15,760 16,634
Receivables 16,826 16,371 14,572
Cash and cash 3,748 13,859 5,214
equivalents
Total current
assets 38,472 45,990 36,420
Total assets 85,600 94,260 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 46,507 51,605 45,451
Total equity 58,328 63,426 57,273
Liabilities
Non-current
liabilities 9,540 12,950 10,533
Current liabilities 17,731 17,884 16,226
Total liabilities 27,271 30,834 26,759
Total equity and
liabilities 85,600 94,260 84,031
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro 1 Jan- 1 Jan- 1 Jan-
31 Mar, 31 Mar, 31 Dec,
2014 2013 2013
Cash flows from operating
activities:
Profit before tax 892 1,277 4,401
Adjustments 1,705 1,223 6,566
Change in working capital -1,954 -2,626 -2,091
Financial items -77 -13 -126
Tax paid 67 950 976
Net cash from
operating activities 632 811 9,726
Cash flows from investing
activities:
Purchases of property,
plant and equipment -1,637 -4,131 -9,089
Net cash used in
investing activities -1,637 -4,131 -9,089
Cash flows from financing
activities:
Proceeds from long-
term borrowings - 10,000 10,000
Proceeds from short-
term borrowings 4,000 23 1,024
Payments of long-term borrowings
-1,000 - -1,000
Payments of short-
term borrowings -2,024 - -4,043
Payments of finance
lease liabilities -138 -109 -478
Other items 36 - 10
Dividends paid -578 - -6,763
Capital repayment - - -1,169
Management
arrangement's
dissolvement -768 - -
Net cash used in
financing activities -472 9,904 -2,419
Increase (+) /
decrease (-) in cash
and cash equivalents -1,477 6,585 -1,782
Exchange rate changes 11 -14 -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 3,748 13,859 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 in- re- earnings
mium vested serves
1,000 euro unre- 1)
stricted
equity
Balance at
31 Dec, 2013 11,821 20,045 3 1,756 23,647 57,273
Profit for
the period 641 641
Other com-
prehensive
income, net
of tax:
Cash flow
hedges -20 -20
Translation
differences -3 -3
Total com-
prehensive
income for
the period -23 641 618
Share issue 750 750
Share-based
payments 45 45
Acquisition
of non-
controlling
interest -357 -357
Balance at
31 Mar, 2014 11,821 20,045 753 1,732 23,977 58,328
Balance at
31 Dec, 2012 11,821 20,045 1,200 1,874 26,919 61,860
Profit for
the period 1,218 1,218
Other com-
prehensive
income, net
of tax:
Cash flow
hedges -47 -47
Translation
differences 316 316
Total com-
prehensive
income for
the period 269 1,218 1,487
Share-based
payments 80 80
Balance at
31 Mar, 2013 11,821 20,045 1,200 2,143 28,217 63,426
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-
31 Mar, 31 Mar, 31 Dec,
2014 2013 2013
Carrying amount
at the beginning
of the period 45,295 43,433 43,433
Additions 1,068 2,569 7,648
Disposals - - -9
Depreciation -1,538 -1,302 -5,623
Exchange differences 2 119 -154
Carrying amount
at the end of
the period 44,827 44,819 45,295
COMMITMENTS AND CONTINGENCIES
1,000 euro 31 Mar, 31 Mar, 31 Dec,
2014 2013 2013
Loans, secured with
collaterals 9,000 11,000 10,000
Collaterals 17,128 21,164 17,128
Off-balance sheet
lease commitments 395 453 395
Capital commitments 1,293 2,376 1,910
Nominal values of
derivative contracts
Currency
forward
agreements 1,963 769 1,144
Currency options,
call 646 895 948
Currency options,
put 72 - 182
Electricity
derivatives 1,657 2,434 1,847
Fair values of
derivative contracts
Currency forward agreements
5 -11 20
Currency options, call 4 2 12
Currency options, put -1 - -1
Electricity
derivatives -420 -199 -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 31 Mar, 2014 31 Mar, 2013
Level Level Level Level Level Level
1 2 3 1 2 3
Financial
assets
Derivative
financial
instruments - 107 - - 31 -
Financial
liabilities
Derivative
financial
instruments - 519 - - 240 -
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 the 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-
31 Mar, 31 Mar, 31 Dec,
2014 2013 2013
Net sales 17,405 16,403 68,516
Change in net sales
compared to the previous
year's period, % 6.1 -13.2 -17.5
Export and foreign
operations share
of net sales, % 88.3 92.5 91.8
Operating profit before
depreciation (EBITDA) 2,546 2,725 10,905
% of net sales 14.6 16.6 15.9
Operating profit 928 1,373 5,031
% of net sales 5.3 8.4 7.3
Profit before tax 892 1,277 4,401
% of net sales 5.1 7.8 6.4
Return on equity, % 4.4 7.8 6.4
Return on investment, % 5.4 6.6 6.7
Non-interest-bearing
liabilities 14,625 14,972 15,014
Net interest-bearing
liabilities 8,898 2,003 6,530
Net gearing ratio, % 15.3 3.2 11.4
Equity ratio, % 68.4 67.3 68.2
Capital expenditure 1,068 2,569 7,648
% of net sales 6.1 15.7 11.2
Depreciation 1,618 1,352 5,874
Research and development
expenditure 672 644 2,779
% of net sales 3.9 3.9 4.1
Average number of
personnel during 355 358 363
the period
Personnel at the
end of the period 354 354 355
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 31 Mar, 31 Mar, 31 Dec,
2014 2013 2013
Basic earnings
per share 0.04 0.07 0.23
Diluted earnings
per share 0.04 0.07 0.22
Equity per share 3.46 3.80 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 4.75 4.71 4.92
Lowest trading price 4.38 4.33 4.25
Highest trading price 5.25 5.15 5.66
Trading price at the
end of the period 4.55 4.53 4.82
Market capitalisation
at the end of the
period, 1,000 euro 78,658 78,312 83,326
Trading volume (1 Jan-)
Trading volume,
transactions, 1,000 pcs 1,105 1,004 3,382
In relation to weighted
average number of
shares, % 6.4 5.8 19.6
Trading volume,
1,000 euro 5,286 4,732 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 17,405
Compared to previous
quarter, % 3.4
Compared to corresponding
period last year, % 6.1
Operating profit 928
% of net sales 5.3
Profit before tax 892
% of net sales 5.1
Net cash flow generated
from:
Operating activities 632
Investing activities -1,637
Financing activities -472
Increase/decrease in cash
and cash equivalents -1,477
Personnel at the end
of the period 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.
NEWS CONFERENCE
A briefing for analysts, investors and media will take place on Thursday, 24
April 2014 at 8.30 a.m. in Helsinki Stock Exchange building, Fabianinkatu 14,
Helsinki, (entrance via NASDAQ OMX's reception, 2(nd) floor). In the event,
Okmetic's President Kai Seikku will present the group's performance in Q1 2014.
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 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#1779246]
OKMETIC OYJ INTERIM REPORT 1 JANUARY-31 MARCH 2014: NET SALES GROWING, STRONG DEMAND ESPECIALLY FOR SENSOR WAFERS
| Source: Okmetic Oyj
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