2013-02-12 07:00:00 CET
2013-02-12 07:01:24 CET
REGULATED INFORMATION
Okmetic Oyj - Financial Statement Release
FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2012: OKMETIC'S WAFER SALES GREW IN DIFFICULT MARKET CIRCUMSTANCES
OKMETIC OYJ STOCK EXCHANGE RELEASE 12 FEBRUARY 2013 AT 8.00 A.M.
FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2012: OKMETIC'S WAFER SALES
GREW IN DIFFICULT MARKET CIRCUMSTANCES
Unless otherwise stated, figures in parenthesis refer to the corresponding
period of the previous year.
JANUARY-DECEMBER IN BRIEF:
* Net sales amounted to 83.1 (83.2) million euro, down 0.1%.
* Net sales of silicon wafers amounted to 70.9 (67.3) million euro, up 5.4%.
* Operating profit was 8.0 (11.8) million euro corresponding to 9.7% of net
sales.
* Profit for the period was 5.1 (10.2) million euro.
* Basic earnings per share was 0.31 (0.61) euro.
* Net cash flow from operations amounted to 9.4 (11.7) million euro.
* The board of directors proposes to the annual general meeting that a
dividend of 0.25 euro per share will be distributed for the financial year
2012.
OCTOBER-DECEMBER IN BRIEF:
* Net sales amounted to 20.7 (18.1) million euro, up 14.1%.
* Operating profit was 1.0 (2.3) million euro corresponding to 4.9% of net
sales.
* Profit for the period was 0.2 (2.0) million euro.
* Basic earnings per share was 0.01 (0.12) euro.
* Net cash flow from operations amounted to 3.6 (5.4) million euro.
PROJECTIONS FOR THE NEAR FUTURE
In 2013, the demand for semiconductors is estimated to take an upward turn again
and the sensor technology is forecasted to continue on its growth track.
The demand for sensor wafers manufactured by Okmetic is estimated to be fairly
stable throughout 2013. DDuDue to normal seasonal fluctuation, the demand for
semiconductor wafers will be slower in the beginning of the year and is likely
to pick up in the second quarter.
Okmetic strives to grow faster than the markets in its core business as a
manufacturer of demanding silicon wafers in the current financial year as well.
The significant contracting of technology sales due to the solar cell industry's
plummeted price level means restructuring in the company's business, which will
largely consist of silicon wafer sales in 2013. Nevertheless, the forecasted
growth of silicon wafer sales will not fully compensate for the steep decline in
technology sales, which is why the company's net sales will decrease in 2013.
Technology sales will be reported under the title "Other business" as of 1
January 2013 due to its diminished importance.
The net sales and operating profit for the whole year 2013 are estimated to
remain under the level of 2012. In the first quarter, the operating profit is
estimated to be weaker than in 2012 due to the decline of technology sales and
seasonal fluctuation of silicon wafer sales. The demand for silicon wafers is
estimated to strengthen clearly in the second quarter.
PRESIDENT KAI SEIKKU:"Okmetic's growth and profitability were clearly at a better level than those of
the rest of the silicon wafer market in 2012 as well. Challenges in the industry
are characterised by the fact that in 2012, the surface area of silicon wafers
delivered globally remained at the 2011 level, but the value of the shipments
declined by around 15 percent according to estimates. Under these circumstances,
the clear growth of the silicon wafer business in 2012 was a great
accomplishment, indication of which is Okmetic's market share rising to a record
level at the end of 2012.
The reduced profitability in the last quarter was due to the increasingly
difficult market situation in the solar cell industry, lowered demand for epi
wafers, and non-recurring expense items. Despite the challenges in the end of
the year, the operating profit for the entire year was close to the long-term
profitability objective. In the last quarter, silicon wafer sales rose to a
considerably higher level than in the comparison period.
Long-term investments into the development and production of demanding sensor
wafers continued throughout 2012. The investment programme published in 2011,
which aims at the increase of SOI wafer production capacity, proceeded as
planned, and Okmetic has readiness to increase its capacity gradually, following
the increase in market demand.
In 2012, the company's silicon wafer sales saw the strongest growth in Asia, and
the wafer sales are estimated to continue to grow in this strategic investment
area of the company. Despite this, the relative share of sales in Asia will
decline in the current year because the technology sales, which have in recent
years been directed to Asia, are waning.
The company focuses on growth in its core business as a manufacturer of silicon
wafers, but the decline in technology sales, forecasted for the current year,
will weigh the net sales under the 2012 level. Okmetic's long-term strategy to
grow as a manufacturer of demanding sensor wafers remains unchanged."
KEY FIGURES
1,000 euro 1 Oct- 1 Oct- 1 Jan- 1 Jan- 1 Jan-
31 Dec, 31 Dec, 31 Dec, 31 Dec, 31 Dec,
2012 2011 2012 2011 2010
Net sales 20,685 18,134 83,074 83,186 80,907
Operating
profit
before
depreciation
(EBITDA) 2,409 3,848 13,864 18,069 17,102
Operating
profit 1,007 2,338 8,018 11,817 10,421
% of net sales 4.9 12.9 9.7 14.2 12.9
Profit for
the period 211 1,988 5,089 10,235 9,952
Basic earnings
per share,
euro 0.01 0.12 0.31 0.61 0.60
Net cash flow
from operating
activities 3,565 5,431 9,425 11,691 16,594
Net interest-
bearing
liabilities -1,688 -10,257 -1,688 -10,257 -18,047
Equity ratio, % 72.2 78.9 72.2 78.9 76.6
Average number
of personnel
during the period 364 351 368 363 345
MARKETS
Customer industries sensor, semiconductor, and solar cell industries
Sensor industry
According to different estimates, the sale value of sensor industry increased by
approximately 6-11 percent in 2012 compared to the previous year. The
development of sensor sales has been positively influenced by the increased use
of micro sensors in many consumer electronics products. In 2013, the sale value
of sensor industry is estimated to increase by 8-11 percent compared to 2012. In
terms of volume, the sensor shipments are likely to clearly rise to a record
level in 2013. In the near future, the sale value of sensor industry is
estimated to grow 8-13 percent annually. (IHS, Yole)
Certain silicon-based microelectromechanical (MEMS) products within the sensor
segment have higher sales growth rates than the others. The shipment volumes of
silicon-based microphones experienced especially strong growth in 2012 (IHS).
Also, the demand for pressure sensors, accelerometers, gyroscopes, and
micromechanical filters increased. Silicon-on-insulator (SOI) technology is
increasingly used, among others, in the manufacture of these products. Okmetic
is amongst the pioneering suppliers who provide SOI wafers to the sensor
industry.
Semiconductor industry
The semiconductor industry's sales in US dollars started to grow during the last
quarter of 2012 and, according to estimates, exceeded both the level of the
third quarter and the corresponding period in 2011 (IHS, SIA). Despite the
growth in the fourth quarter, the estimates for the sales of the whole year
remain below the level of 2011 on average. The estimates for the sale
development in 2012 settle now at a level of -3 and +1 percent of annual growth.
The sales are forecasted to be 298-304 billion US dollars in 2012. (Gartner, IC
Insights, IDC, IHS)
The semiconductor industry is estimated to return to a clear growth track during
the first half of 2013 (IHS, SIA). A group of growing applications directed
especially to consumer markets, such as 4G phones and tablet computers, play a
key role in the growth of semiconductors. A growth of 5-8 percent is predicted
for the whole semiconductor market in 2013. (Gartner, IDC, IHS) During 2013, the
growth rate of power semiconductors is estimated to exceed the semiconductor
market average (Yole). In the market important to Okmetic, semiconductors for
automotive electronics, for example, the outlook is more positive than the
market average (IDC).
Solar cell industry
The market is estimated to have exceeded the level of 30GW in 2012. The growth
was fuelled by China, the United States, and Japan while the demand in Europe
was weaker. (IHS)
The industry is going through a strong restructuring boosted by significant
decline of prices.
Silicon wafer market
According to the estimate published in December by 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 2012 calculated in square inches is estimated to equal the previous year's
surface area. The surface area is estimated to grow around 6 percent in
2013-2015 (Infiniti Research, SEMI).
Okmetic's central customer areas in the silicon wafer market
In line with its strategy, Okmetic seeks for special areas of the entire silicon
wafer market that have greater growth rates than the market average and in which
the company has special expertise. Okmetic supplies primarily 150mm and 200mm
wafers. The sensor/MEMS industry is Okmetic's central growth area. The 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. The growth areas of these markets are i.a. 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 2012, Okmetic's net sales decreased by 0.1 (increased by 2.8) percent from
the previous year amounting to 83.1 (83.2) million euro. Semiconductor and
sensor wafer sales grew in 2012. Instead, sales to the solar cell industry
decreased significantly.
Sales per customer area
1 Oct- 1 Oct- 1 Jan- 1 Jan- 1 Jan-
31 Dec, 31 Dec, 31 Dec, 31 Dec, 31 Dec,
2012 2011 2012 2011 2010
Sensors 53% 54% 47% 46% 43%
Semiconductors 34% 30% 38% 35% 42%
Technology 13% 16% 15% 19% 15%
In 2012, the sensor wafer sales grew compared to the previous year. The demand
for sensor wafers was at a good level especially in the second half of the year.
The rise in production and shipment volumes of the strategically important SOI
wafers was particularly positive. The use of sensors and their requirement level
are expected to continue growing. Sensor applications are increasing in the
automotive industry, and also especially in consumer electronics products like
smartphones, cameras, game consoles, and other mobile devices.
The semiconductor wafer sales grew in 2012. The strong demand for semiconductor
wafers that began in the end of the first quarter continued until the end of the
third quarter. In the last quarter, the sales declined slightly in line with the
business cycles typical of the industry.
In 2012, technology sales decreased clearly and its net sales consisted mainly
of solar crystal shipments.
Sales per market area
1 Oct- 1 Oct- 1 Jan- 1 Jan- 1 Jan-
31 Dec, 31 Dec, 31 Dec, 31 Dec, 31 Dec,
2012 2011 2012 2011 2010
North America 33% 43% 37% 37% 43%
Europe 30% 31% 27% 30% 25%
Asia 36% 27% 35% 33% 32%
In 2012, Okmetic's sales increased in Asia, North American sales remained at the
same level as last year, and European sales decreased slightly.
PROFITABILITY
January-December
In January-December, Okmetic's operating profit was 8.0 (11.8) million euro. The
operating profit accounted for 9.7 (14.2) percent of net sales. Profit for the
period was 5.1 (10.2) million euro. Basic earnings per share was 0.31 (0.61)
euro. Diluted earnings per share was 0.30 (0.59) euro.
October-December
In October-December, Okmetic's operating profit was 1.0 (2.3) million euro. The
operating profit accounted for 4.9 (12.9) percent of net sales. Profit for the
period was 0.2 (2.0) million euro. The October-December result was reduced by
the considerably weakened profitability of technology sales consisting of solar
crystals, as well as the significant decline of epi wafer demand towards the end
of the year, which is why the result of the Allen production plant showed a loss
in the last quarter. In addition, the profit was weighed down by the
unfavourable changes of exchange rates as well as non-recurring expense items.
Basic earnings per share was 0.01 (0.12) euro. Diluted earnings per share was
0.01 (0.12) euro.
FINANCING
The company's financial situation is good. In 2012, net cash flow from
operations amounted to 9.4 (11.7) million euro.
On 31 December 2012, the company's interest-bearing liabilities amounted to 5.6
(1.0) million euro.
At the end of 2012, cash and cash equivalents amounted to 7.3 (11.3) million
euro. On 31 December 2012, the company's cash and cash equivalents exceeded the
interest-bearing liabilities by 1.7 million euro (on 31 December 2011, cash and
cash equivalents were 10.3 million euro higher than interest-bearing
liabilities).
Return on equity amounted to 8.3 (17.2) percent. At the end of the year, the
company's equity ratio was 72.2 (78.9) percent. Equity per share was 3.72 (3.68)
euro.
INVESTMENTS
In 2012, Okmetic's capital expenditure amounted to 14.3 (12.0) million euro.
The investments concerned mainly the board's decision in April 2011 to increase
SOI wafer production capacity by extending the Vantaa plant. The around 30
million euro investment programme includes the plant extension and different
kinds of production equipment. In addition, the company invested in
debottlenecking and automatisation of wafer production lines.
PRODUCT DEVELOPMENT
In 2012, the company expensed 2.3 (2.4) million euro in product development
projects. Product development costs accounted for 2.8 (2.9) percent of the net
sales. The product development costs have not been capitalised.
In 2012, the company focused, in particular, on products used in the manufacture
of MEMS sensors and power management circuits by expanding the SOI product
family and increasing and developing the production capacity of the 200mm SOI
and SSP wafers. Among other things, Okmetic introduced an L-SOI wafer containing
a very low resistivity SOI layer, as well as very thin and thick 200mm SSP
wafers manufactured with new production technologies. The new SOI line and new
equipment helped increase the performance and production capacity of SOI wafers
already in the current production facilities.
Okmetic also improved the capability of its crystal growth method, which makes
it possible to grow crystals with higher and lower resistivity than before. This
has increased the amount of crystal materials and expanded the product range
offered to the manufacturers of MEMS sensors and power management circuits even
further.
In 2012, Okmetic continued its long-term research of silicon materials with
Finnish and foreign universities and research institutions and participated in
several national and EU-funded technology projects. The company collaborated,
among others, with the VTT Technical Research Centre of Finland, Aalto
University, and Fraunhofer Institute as well as participated in member events of
sensor and semiconductor associations. During 2012, Okmetic also started co-
operation with the Institute of Microelectronics in Singapore. In Finland,
Okmetic was a founding member in the MemsCat - Innovation Catalyst & Ecosystems
Based on Microsystems cluster.
PERSONNEL
Competent, motivated, and content personnel are a prerequisite for Okmetic's
growth and success. This is described in the values as well as in the human
resources and quality policies of the company.
On average, Okmetic employed 368 (363) people in 2012. At the end of the year,
Okmetic employed 364 (350) people of which 322 worked in Finland, 37 in the US,
four in Japan, and one in Hong Kong.
Women accounted for 26 (26) percent and men 74 (74) percent of the personnel.
White-collar employees accounted for 36 (36) percent and blue-collar employees
for 64 (64) percent of the personnel. The average age of Okmetic's employees was
43 (43) years and the average length of employment was 10.9 (10.9) years.
Salaries and bonuses are based on the level of skills required in each position
throughout the organisation. In 2012, salaries and bonuses amounted to 21.4
(20.7) million euro including 0.5 (1.2) million euro expenses of the share
reward schemes. The group's parent company complies with the collective labour
agreements of the Technology Industries of Finland.
All employee groups at Okmetic are eligible for an incentive scheme. The blue-
collar employees' possible production bonuses are paid monthly according to the
achievement of set targets. White-collar employees are subject to a profit-
sharing scheme, which is based on annual targets set by the board of directors
relating to the group's profitability, financial situation, and operative
performance. Bonuses for meeting the targets are calculated as a percentage of
the employees' annual income. The bonuses account for no more than 12-20 percent
of the annual income depending on the personnel group.
ENVIRONMENTAL ISSUES
Okmetic recognises the environmental risks associated with its operations. The
company devises both a universal risk management plan and plans for individual
processes. Ecologically sustainable operations support Okmetic's competitiveness
and profitability.
Measures devised for eliminating environmental risks are integrated to Okmetic's
operational processes. Environmental considerations are factored into the
development of products and operations in line with the continuous improvement
principles. Planning of preventive measures is fundamental part of environmental
risk management.
Okmetic keeps an eye on environmental legislation development both in Finland
and internationally, and adjusts its operations to meet the regulations.
In 2012, a document management system was implemented in order to develop
quality and environmental issues. In October 2012, Okmetic left an application
for the renewal of the Vantaa plant's environmental permit, as scheduled.
Okmetic's environmental programme had three objectives in 2012: Registration of
silicon according to REACH regulation, making the use of polysilicon more
effective, and reducing the number of printers. The objectives of the
environmental programme were reached.
Okmetic follows the chemical regulations of the European Union (REACH) and all
Okmetic's products meet the requirements set in the RoHS-directive.
Okmetic has ISO 9001:2008, TS 16949:2009, and ISO 14001:2004 certified quality
and environmental systems both at Vantaa and Allen plants. Okmetic expects its
most important subcontractors and suppliers to comply with the ISO 9001 and ISO
14001 certifications.
Okmetic had no major environmental non-conformities in 2012. Okmetic's
environmental management methods were found to match the high requirement level
of international customer companies. The company is not subject to emissions
trading regulations.
The consumption of energy, the use of polysilicon, the amount of acid waste as
well as the consumption of water and chemicals have been assessed to have a
significant environmental impact. The development of these factors is monitored
regularly.
The key figures on environmental protection at the Vantaa plant in 2012 are as
follows:
Energy consumption (GWh): electricity 31.9 (32.9), district heating 2.5 (2.7).
Water consumption (tm3): water 563 (560), waste water 473 (474).
Waste volumes (t): hazardous waste 346 (264), landfill waste 0 (0), recycled
waste 314 (299).
BUSINESS RISKS
Despite the prolonged euro crisis, there have been no significant changes in the
company's near future business risks and uncertainties.
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.
Technology sales have in recent years been mainly crystal sales to the solar
cell industry. 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 only has considerable pricing power with its own special
products. The pricing of other wafers is mainly 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 the cash flows of
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 December 2012, 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 Dec 2012
Shares, Share,
pcs %
Ilmarinen Mutual Pension
Insurance Company 1,549,985 9.0
Oy Ingman Finance Ab 835,000 4.8
Mandatum Life Insurance
Company Limited 800,000 4.6
The State Pension Fund 600,000 3.5
Varma Mutual Pension
Insurance Company 477,175 2.8
Etra-Invest Oy Ab 400,000 2.3
Okmetic Management Oy 400,000 2.3
Nordea Nordic Small
Cap Fund 370,660 2.1
Okmetic Oyj 227,946 1.3
Sijoitusrahasto Taaleritehdas Arvo Markka Osake 225,100 1.3
Foreign investors and
nominee accounts held by
custodian banks 2,912,462 16.8
Others 8,489,172 49.1
Total 17,287,500 100.0
Shareholders by group
on 31 Dec 2012
Shares, Share,
pcs %
Corporations 3,421,672 19.8
Financial and insurance
institutions 1,650,993 9.6
Public organisations 2,824,314 16.3
Non-profit organisations 129,317 0.7
Households 6,348,742 36.7
Foreign investors and
nominee accounts held by
custodian banks 2,912,462 16.8
Total 17,287,500 100.0
Distribution of shareholdings
on 31 Dec 2012
% of
Shares, Number of % of Shares, share
pcs shareholders shareholders pcs capital
1-100 1,335 17.3 96,233 0.6
101-500 3,580 46.4 1,045,817 6.0
501-1,000 1,409 18.3 1,153,445 6.7
1,001-5,000 1,178 15.3 2,524,966 14.6
5,001-10,000 115 1.5 841,833 4.9
10,001-50,000 78 1.0 1,700,346 9.8
50,001-100,000 4 0.1 284,954 1.6
100,001-500,000 11 0.1 2,998,416 17.3
500,001- 5 0.1 6,641,490 38.4
Total 7,715 100.0 17,287,500 100.0
SHARE PRICE DEVELOPMENT AND TRADING
A total of 3.3 (10.9) million shares were traded between 1 January and 31
December 2012, representing 19.3 (63.1) percent of the weighted average of share
total of 17.3 (17.3) million during the period. The lowest quotation of the
reporting period was 4.21 (3.50) euro, and the highest 6.01 (6.65) euro, with
the average being 5.25 (5.48) euro. The closing quotation for the period was
5.02 (4.92) euro. At the end of the period, the market capitalisation amounted
to 86.8 (85.1) million euro.
Okmetic is listed on the Small Cap list of NASDAQ OMX Helsinki Ltd. under the
trading code OKM1V. According to the International Classification Benchmark
(ICB), which the exchange uses, Okmetic Oyj is listed under the Technology
Industry. The company website can be found at www.okmetic.com.
OWN SHARES AND DIRECTED SHARE ISSUES
On 8 February 2012, Okmetic's board of directors decided on a transfer of
56,033 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 has
given a stock exchange release on 11 February 2010. 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 the taxes.
In line with the decisions of the annual general meeting, Okmetic Oyj
transferred 13,597 shares to the board members as payment of the 2012 annual
remuneration on 10 May 2012.
At the end of the year, the company held a total of 227,946 (297,576) shares,
which is approximately 1.3 (1.7) percent of Okmetic's all shares and votes.
OTHER EVENTS IN THE FINANCIAL YEAR
The company Kiinteistö Oy Piitalot which was part of Okmetic group merged with
Okmetic Oyj on 1 January 2012. Its assets and liabilities were transferred to
Okmetic Oyj.
Okmetic's board of directors decided on 8 February 2012 on the share reward
programme for the executive management group for 2012 as a part of the company's
incentive and commitment plan. The purpose of the programme is to commit and
incentivise the executive management group to grow the shareholder value in the
long run. The possible rewards of the share reward programme will be paid in
Okmetic shares and in a monetary amount covering the taxes in accordance with
reaching the targets that have been set. The amount of the rewards corresponds
to a maximum of 150,000 shares. In addition, a monetary amount covering the
taxes will be paid.
In December 2012, the company's board of directors decided to extend the
ownership arrangement, originally planned approximately for a three-year period,
of Okmetic Management Oy, owned by Kai Seikku, President, and Mikko Montonen,
Executive Vice President, Customers and Markets, by a maximum of one year. The
company will be dissolved by means of a merger or another method no later than
in the beginning of 2014.
EVENTS AFTER THE END OF THE FINANCIAL YEAR
Okmetic announced in January that the company has signed a five-year loan
agreement for 10 million euro. The loan is used for the earlier announced
investments and for the general corporate purposes.
On 11 February 2013, the company's board of directors decided to change the
sales reporting of the company's business areas so that in the future technology
business is reported under the title "Other business". The reason behind this
decision is the clearly diminished role of technology sales in Okmetic's
business due to the solar cell industry's plummeted price level. The sales
reporting according to the new structure will start from the interim report of
the first quarter of 2013.
MANAGEMENT AND AUDITOR
In 2012, Okmetic's board of directors comprised Henri Österlund as the chairman,
Tapani Järvinen as the vice chairman, and members of the board Hannu Martola,
Mervi Paulasto-Kröckel as well as Pekka Salmi until 12 April 2012 and Mikko
Puolakka since 12 April 2012.
Kai Seikku acts as the President of Okmetic Oyj and Mikko Montonen, Executive
Vice President, Customers and Markets acts as the Deputy to the President.
In addition to the president, the group's executive management group includes
Mikko Montonen, Executive Vice President, Customers and Markets and Deputy to
the President; Petri Antola, Senior Vice President, Technology Projects and
Solar Materials; Juha Jaatinen, Senior Vice President, Finance, IT, and
Communications; Jaakko Montonen, Senior Vice President, Supply Chain; Markku
Tilli, Senior Vice President, Research; Markus Virtanen, Senior Vice President,
Human Resources, Quality, and Environment; and Anna-Riikka Vuorikari-Antikainen,
Senior Vice President, Products.
The company's auditor is PricewaterhouseCoopers Oy, Authorised Public
Accountants, with Mikko Nieminen, Authorised Public Accountant, acting as the
principal auditor.
THE BOARD OF DIRECTORS' PROPOSAL REGARDING DIVIDEND DISTRIBUTION
According to the financial statements dated on 31 December 2012, the parent
company's distributable earnings amount to 26.7 million euro. No significant
changes have taken place in the company's financial position after the end of
the financial year.
The board of directors of Okmetic Oyj proposes to the annual general meeting
that Okmetic Oyj distributes a dividend of 0.25 euro per share for 2012, which,
based on the 17,287,500 shares registered on 11 February 2013, amount to 4.3
million euro.
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 31 DECEMBER 2012 (audited)
ACCOUNTING POLICIES
This financial statements release has been prepared in accordance with IAS 34,
Interim Financial Reporting.
In preparing this financial statements release, Okmetic has followed the same
accounting policies as in the financial statements for 2011 except for the
effect of changes required by the adoption of the following new or revised
standards and interpretations as of 1 January 2012:
-IFRS 7 (amendment), Financial instruments: Disclosures - Derecognition.
-IAS 12 (amendment), Income Taxes - Deferred Tax.
The adoption of the aforementioned 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 Oct- 1 Oct- 1 Jan- 1 Jan-
31 Dec, 31 Dec, 31 Dec, 31 Dec,
2012 2011 2012 2011
Net sales 20,685 18,134 83,074 83,186
Cost of sales -17,017 -13,388 -65,995 -61,876
Gross profit 3,668 4,746 17,079 21,310
Other income
and expenses -2,661 -2,408 -9,061 -9,493
Operating
profit 1,007 2,338 8,018 11,817
Financial
income and
expenses -245 101 -418 -479
Profit before
tax 762 2,439 7,600 11,339
Income tax -550 -451 -2,510 -1,104
Profit for
the period 211 1,988 5,089 10,235
Other
comprehensive
income:
Cash flow
hedges 8 -144 128 -177
Translation
differences 458 469 76 808
Other
comprehensive
income for the
period, net of
tax 467 326 204 631
Total
comprehensive
income for
the period 678 2,313 5,293 10,866
Profit for the
period
attributable
to:
Equity holders
of the parent
company 211 1,988 5,089 10,235
Total
comprehensive
income
attributable
to:
Equity holders
of the parent
company 678 2,313 5,293 10,866
Basic earnings
per share,
euro 0.01 0.12 0.31 0.61
Diluted
earnings per
share, euro 0.01 0.12 0.30 0.59
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro 31 Dec, 31 Dec,
2012 2011
Assets
Non-current assets
Intangible assets 636 -
Property, plant and
equipment 43,433 34,887
Other receivables 3,089 3,255
Total non-current
assets 47,159 38,142
Current assets
Inventories 13,526 13,114
Receivables 17,796 15,374
Cash and cash
equivalents 7,288 11,257
Total current
assets 38,610 39,745
Total assets 85,769 77,887
Equity and liabilities
Equity
Equity attributable
to equity holders of
the parent company
Share capital 11,821 11,821
Other equity 50,038 49,151
Total equity 61,860 60,973
Liabilities
Non-current
liabilities 5,314 2,968
Current liabilities 18,595 13,946
Total liabilities 23,909 16,914
Total equity and
liabilities 85,769 77,887
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro 1 Jan- 1 Jan-
31 Dec, 31 Dec,
2012 2011
Cash flows from operating
activities:
Profit before tax 7,600 11,339
Adjustments 6,482 7,575
Change in working capital -1,124 -6,782
Financial items -47 -401
Tax paid -3,486 -39
Net cash from
operating activities 9,425 11,691
Cash flows from investing
activities:
Purchases of property,
plant and equipment -10,983 -11,319
Investments in fixed
income funds - 5,016
Net cash used in
investing activities -10,983 -6,302
Cash flows from financing
activities:
Proceeds from short-
term borrowings 3,043 -
Payments of finance
lease liabilities -264 -
Other items 10 -
Repurchase of own shares - -1,147
Dividends paid -4,862 -7,331
Net cash used in
financing activities -2,072 -8,478
Increase (+) /
decrease (-) in cash
and cash equivalents -3,631 -3,089
Exchange rate changes -338 304
Cash and cash
equivalents at
the beginning
of the period 11,257 14,043
Cash and cash
equivalents at
the end of the
period 7,288 11,257
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, 2011 11,821 20,045 1,200 1,670 26,238 60,973
Profit for
the period 5,089 5,089
Other com-
prehensive
income, net
of tax:
Cash flow
hedges 128 128
Translation
differences 76 76
Total com-
prehensive
income for
the period 204 5,089 5,293
Share-based
payments 255 255
Dividend
distribution -4,661 -4,661
Balance at
31 Dec, 2012 11,821 20,045 1,200 1,874 26,919 61,860
Balance at
31 Dec, 2010 11,821 20,045 1,200 1,039 24,137 58,242
Profit for
the period 10,235 10,235
Other com-
prehensive
income, net
of tax:
Cash flow
hedges -177 -177
Translation
differences 808 808
Total com-
prehensive
income for
the period 631 10,235 10,866
Repurchase
of own
shares -1,147 -1,147
Share-based
payments 544 544
Dividend
distribution -7,531 -7,531
Balance at
31 Dec, 2011 11,821 20,045 1,200 1,670 26,238 60,973
1)"Other reserves" contains hedge reserve and translation differences.
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
1,000 euro 1 Jan- 1 Jan-
31 Dec, 31 Dec,
2012 2011
Carrying amount
at the beginning
of the period 34,887 29,069
Additions 14,342 11,992
Disposals - -
Depreciation -5,739 -6,252
Exchange differences -56 78
Carrying amount
at the end of
the period 43,433 34,887
DIVIDENDS PAID
In April 2012, the company distributed a dividend of 4.8 million euro of the
profit accrued in 2011 (including the 0.1 million euro dividend paid for Okmetic
Management Oy). The dividend was 0.28 euro per share.
In April 2011, the company distributed a dividend of 5.2 million euro of the
profit accrued in 2010 (including the 0.1 million euro dividend paid for Okmetic
Management Oy). The dividend was 0.30 euro per share.
In December 2011, the company distributed an additional dividend of 2.5 million
euro (including the 0.1 million euro dividend paid for Okmetic Management Oy).
The dividend was 0.15 euro per share.
COMMITMENTS AND CONTINGENCIES
1,000 euro 31 Dec, 31 Dec,
2012 2011
Loans, secured with
collaterals 1,000 1,000
Collaterals 8,073 8,073
Off-balance sheet
lease commitments 451 426
Capital commitments 5,499 5,424
Nominal values of
derivative contracts
Currency options,
call - 652
Currency options,
put - 652
Currency forward
agreements 1,462 154
Electricity
derivatives 2,489 2,173
Fair values of
derivative contracts
Currency options,
call - 0
Currency options,
put - -81
Currency forward
agreements 21 1
Electricity
derivatives -227 -330
The contract price of the derivatives has been used as the nominal value of the
underlying asset.
RELATED PARTY TRANSACTIONS
In January-December, the compensation of the executive management group and
board of directors amounted to 1,915,939 (2,751,000) euro. The compensation
includes share-based payments and the board of directors' remuneration paid as
shares 524,464 (1,370,000) euro.
KEY FIGURES SHOWING FINANCIAL PERFORMANCE
1,000 euro 1 Jan- 1 Jan-
31 Dec, 31 Dec,
2012 2011
Net sales 83,074 83,186
Change in net sales
compared to the previous
year's period, % -0.1 2.8
Export and foreign
operations share
of net sales, % 94.4 94.4
Operating profit before
depreciation (EBITDA) 13,864 18,069
% of net sales 16.7 21.7
Operating profit 8,018 11,817
% of net sales 9.7 14.2
Profit before tax 7,600 11,339
% of net sales 9.1 13.6
Return on equity, % 8.3 17.2
Return on investment, % 11.8 18.7
Non-interest-bearing
liabilities 18,309 15,914
Net interest-bearing
liabilities -1,688 -10,257
Net gearing ratio, % -2.7 -16.8
Equity ratio, % 72.2 78.9
Capital expenditure 14,342 11,992
% of net sales 17.3 14.4
Depreciation 5,846 6,252
Research and development
expenditure 2,331 2,382
% of net sales 2.8 2.9
Average number of
personnel during
the period 368 363
Personnel at the
end of the period 364 350
KEY FIGURES PER SHARE
Euro 31 Dec, 31 Dec,
2012 2011
Basic earnings
per share 0.31 0.61
Diluted earnings
per share 0.30 0.59
Equity per share 3.72 3.68
Dividend per share 0.25 0.28
Dividends/earnings, % 80.6 45.8
Effective dividend
yield, % 5.0 5.7
Price/earnings(P/E) 16.2 8.0
Share performance
(1.1.-)
Average trading price 5.25 5.48
Lowest trading price 4.21 3.50
Highest trading price 6.01 6.65
Trading price at the
end of the period 5.02 4.92
Market capitalisation
at the end of the
period, 1,000 euro 86,783 85,055
Trading volume (1 Jan-)
Trading volume,
transactions, 1,000 pcs 3,330 10,907
In relation to weighted
average number of
shares, % 19.3 63.1
Trading volume,
1,000 euro 17,496 59,650
The weighted average
number of shares during
the period under review
adjusted by the share
issue, 1,000 pcs 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
When calculating earnings per share (EPS) and equity, Okmetic's own shares in
its possession and Okmetic's shares owned by Okmetic Management Oy are deducted
from the amount of shares.
QUARTERLY KEY FIGURES
1,000 euro 10-12/ 7-9/ 4-6/ 1-3/
2012 2012 2012 2012
Net sales 20,685 21,017 22,469 18,902
Compared to previous
quarter, % -1.6 -6.5 18.9 4.2
Compared to corresponding
period last year, % 14.1 -1.1 3.3 -14.3
Operating profit 1,007 2,970 2,506 1,535
% of net sales 4.9 14.1 11.2 8.1
Profit before tax 762 2,873 2,736 1,229
% of net sales 3.7 13.7 12.2 6.5
Net cash flow generated
from:
Operating activities 3,565 4,209 2,616 -966
Investing activities -2,650 -3,057 -2,652 -2,624
Financing activities -91 -288 -1,493 -201
Increase/decrease in cash
and cash equivalents 825 864 -1,529 -3,791
Personnel at the end
of the period 364 365 390 352
1,000 euro 10-12/ 7-9/ 4-6/ 1-3/
2011 2011 2011 2011
Net sales 18,134 21,250 21,747 22,055
Compared to previous
quarter, % -14.7 -2.3 -1.4 -4.4
Compared to corresponding
period last year, % -21.4 -1.7 10.5 33.5
Operating profit 2,338 4,045 2,606 2,828
% of net sales 12.9 19.0 12.0 12.8
Profit before tax 2,439 4,117 2,487 2,296
% of net sales 13.4 19.4 11.4 10.4
Net cash flow generated
from:
Operating activities 5,431 2,094 5,503 -1,337
Investing activities -4,332 -1,100 1,035 -1,905
Financing activities -2,771 -664 -5,043 -
Increase/decrease in cash
and cash equivalents -1,672 330 1,495 -3,243
Personnel at the end
of the period 350 350 389 351
DEFINITIONS OF KEY FINANCIAL FIGURES
Operating profit before depreciation = Operating profit + 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 period
the 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 financial statements release are
based on the company management's current knowledge. Actual events and results
may differ from the estimates presented here.
PRESS CONFERENCE
A press conference for the media and analysts will be held on Tuesday, 12
February 2013 at 8.30 a.m. at Helsinki World Trade Center, Aleksanterinkatu 17,
second floor, Helsinki. In the conference, Okmetic's President Kai Seikku will
present the group's development in 2012 and prospects for 2013. The press
conference will be held in Finnish.
We ask participants to kindly give advance notice of their attendance by email
to communications@okmetic.com or by telephone to +358 9 5028 0406/Marika
Mäntymaa.
FINANCIAL RELEASES IN 2013
Interim report 1-3/2013 (1Q) 25 April 2013
Interim report 1-6/2013 (2Q) 25 July 2013
Interim report 1-9/2013 (3Q) 24 October 2013
OKMETIC OYJ
Board of directors
For further information, please contact:
President Kai Seikku, Okmetic Oyj,
tel. +358 400 200 288, 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
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 cell 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.
[HUG#1677214]
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