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2013-02-12 07:00:00 CET 2013-02-12 07:01:24 CET REGULATED INFORMATION Okmetic Oyj - Financial Statement ReleaseFINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2012: OKMETIC'S WAFER SALES GREW IN DIFFICULT MARKET CIRCUMSTANCESOKMETIC 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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