2011-02-10 10:00:00 CET
2011-02-10 10:01:15 CET
REGULATED INFORMATION
Okmetic Oyj - Financial Statement Release
OKMETIC'S FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2010
OKMETIC OYJ STOCK EXCHANGE RELEASE 10 FEBRUARY 2011 AT 11.00 A.M.
OKMETIC'S FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2010
Unless otherwise stated, figures in parenthesis refer to the corresponding
period in the previous year.
January-December 2010:
- The net sales amounted to 80.9 (54.4) million euro, up 48.8%.
- Operating profit was 9.8 (0.3) million euro corresponding to 12.1% of net
sales.
- Earnings per share for the period were 0.60 (-0.03) euro.
- The net cash flow from operations amounted to 16.6 (6.3) million euro.
- The board of directors will propose to the annual general meeting that a
dividend of 0.30 euro per share will be distributed for the financial year 2010.
October-December 2010:
- The net sales amounted to 23.1 (13.8) million euro, up 67.0%.
- Operating profit was 2.8 (-0.2) million euro corresponding to 12.0% of net
sales.
- Earnings per share for the period were 0.13 (-0.02) euro.
- The net cash flow from operations amounted to 6.7 (1.9) million euro.
PROJECTIONS FOR THE NEAR FUTURE
In 2011, customer industries are estimated to continue their growth in all of
Okmetic's main product groups. However, the forecasts are moderate so far.
The development of sensor wafer demand in 2011 is expected to be more stable
than that of semiconductor wafers. The growth estimate for sensor wafers in the
current year is also a little higher than for semiconductor wafers. Technology
sales are emphasised in solar crystal sales, and are intrinsically quite even
over the course of the year.
The net sales and operating profit in the first half of 2011 are estimated to
exceed the level of the corresponding period in 2010. Reaching these estimates
means that the current positive market situation must not see any significant
changes at the beginning of the year.
PRESIDENT KAI SEIKKU:"The pace of the semiconductor industry slowed towards the end of the year in
accordance with normal seasonal fluctuation. Okmetic's order backlog enabled the
level of production volumes in the third quarter to carry on into the final
quarter of the year. Net sales in the last quarter include 1.7 million euro of
low-margin polysilicon sales. This can be seen as growth of technology sales'
relative share of net sales in comparison with the corresponding period in the
previous year.
Semiconductor contract manufacture based on the fab lite operating model
remained on an upward curve throughout the financial year. Production volumes of
SOI wafers that climbed month-by-month reached a record level in December. The
concentration of in-house production on crystal growing and demanding sensor
wafers will also continue within the next few years as the demand is increasing.
The continuing development of productivity and production capacity is important
for ensuring strong market position.
The lower relative profitability in the last quarter in comparison to the third
quarter resulted not only from the aforementioned polysilicon trading, but also
from needs for spare parts and maintenance principally caused by significantly
increased production volumes, fair value changes in currency- and electronic
hedging and small non-recurrent items. On the other hand, the price level of
silicon wafers that recovered during the year was also stable at the end of the
year.
The increase in the order backlog has normalised from the market overheating
that occurred in the second and third quarters of 2010. In this respect, the
market outlook has also normalised, i.e. is a little shorter than a year ago.
The published forecasts for customer industries for 2011 are cautiously
optimistic."
KEY FIGURES
1,000 euro 1.10.- 1.10.- 1.1.- 1.1.- 1.1.-
31.12.10 31.12.09 31.12.10 31.12.09 31.12.08
Net sales 23,072 13,812 80,907 54,361 67,867
Operating
profit
before
depreciation
(EBITDA) 4,369 1,546 16,482 7,206 15,517
Operating
profit/loss 2,758 -197 9,801 270 8,476
% of net sales 12.0 -1.4 12.1 0.5 12.5
Profit/loss for
the period 2,146 -344 9,952 -513 5,825
Earnings per
share,euro
(basic) 0.13 -0.02 0.60 -0.03 0.34
Net cash flow
from operating
activities 6,730 1,858 16,594 6,315 13,177
Net interest-
bearing
liabilities -18,047 -4,770 -18,047 -4,770 -586
Average number
of personnel
during the period 340 330 345 337 364
REVIEW OF JANUARY-DECEMBER 2010
MARKETS
Customer industries sensor, semiconductor, and solar cell industries
Sensor industry
In 2010, the sale value of sensor industry increased by 18 percent to 7.1
billion US dollars. The development in sensor sales has been influenced by the
increased use of micro sensors in many consumer electronics products. Sensor
shipment volumes increased clearly during the second half of the year. The sale
value of sensor industry in 2011 is expected to grow 9.5 percent compared to the
previous year. In terms of volume, the sensor shipments will rise to a record
high level. (IHS, iSuppli)
Certain silicon-based microelectromechanical (MEMS) products within the sensor
segment have higher growth rates than the others. The shipment volumes of
gyroscopes experienced especially strong growth. Also, the demand of pressure
sensors, accelerometers, microphones, and micromechanical filters increased.
Silicon-on-insulator (SOI) technology is a good example of a rapidly growing
sensor manufacturing technology. Okmetic is amongst the pioneering suppliers who
provide these products and services to the sensor industry.
Semiconductor industry
The strong phase of growth in the semiconductor industry that began in the
second half of 2009 levelled off in October-December 2010. The slump in monthly
invoicing that was evident in the latter months of the year indicates that the
semiconductor market is returning to a typical level of seasonal fluctuation
(iSuppli). Of all the sectors of the semiconductor industry, in particular the
growth in the sales of computers slowed down in October-December. At the
beginning of 2010, their sales were very strong. (iSuppli, Gartner, IDC) In
October-November, the monthly sales average of semiconductors remained at a
level of over 26 billion US dollars. The semiconductor sales of 2010 reached a
record level of 298 billion US dollars. (SIA)
The halt in growth that took place at the end of the year is expected to be
temporary. Signs of a new recovery are already evident, and demand is expected
to be directed particularly towards mobile electronics applications such as
smart phones and tablet computers. (Semiconductor Intelligence, iSuppli) The
growth estimate for the semiconductor industry's sales in 2011 is between 4 and
10 percent. (WSTS, S&P, ICInsights, Gartner). It is expected that the growth
rate will remain approximately at the same level until year 2012 (iSuppli,
ICInsights, WSTS).
Solar cell industry
The industry's shipments (GW) approximately doubled compared to the previous
year. Europe continued to be the greatest market area. Demand is forecasted to
remain strong at the beginning of 2011. Capacity investments continue to grow
throughout the solar cell industry's value chain. (IMS Research)
Governmental decisions on subsidies have still a significant impact on the solar
cell industry. This brings certain uncertainty to the future development of the
market.
Silicon wafer industry
According to the report published in February 2011 by SMG, the group of silicon
wafer suppliers in SEMI, the volume of wafer shipments in the silicon wafer
industry in 2010 soared up 40 percent compared to the shipment volumes in 2009
reaching a new record level. The accumulated net sales rose 45 percent to 9.7
billion US dollars from 6.7 billion US dollars in the previous year. Similar to
semiconductor market, silicon wafer market is estimated to grow moderately in
2011.
In 2010, Okmetic's wafer shipments grew volume-wise slightly more than in the
markets (44%), but when measured in euro, the net sales grew clearly more than
in the markets (76%). In line with its strategy, Okmetic succeeded in increasing
particularly the sales of its high added value products.
Okmetic's central customer segments 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 know-how. Okmetic supplies primarily 150mm and 200mm
wafers. The sensor/MEMS industry is Okmetic's central growth area. The MEMS
market grows as the 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, developing applications of the medical and well-being
industries as well as industrial process controlling.
FINANCIAL DEVELOPMENT IN OCTOBER-DECEMBER
Okmetic's net sales increased by 67.0 percent compared to October-December 2009
and amounted to 23.1 (13.8) million euro. In October-December 2010, the
operating profit was 2.8 (-0.2) million euro corresponding to 12.0 percent of
net sales. The development of the group's net cash flow from operating
activities remained strong and amounted to 6.7 (1.9) million euro in October-
December.
SALES
In 2010, Okmetic's net sales increased by 48.8 percent (decreased by 19.9%),
amounting to 80.9 (54.4) million euro. The semiconductor industry grew around
30 percent in 2010, which contributed to increase in net sales. Okmetic's market
share grew in the product areas which are important to the company.
Sales per customer area
1.10.- 1.10.- 1.1.- 1.1.- 1.1.-
31.12.10 31.12.09 31.12.10 31.12.09 31.12.08
Sensors 41% 42% 43% 41% 37%
Semiconductors 40% 43% 42% 31% 38%
Technology 18% 15% 15% 28% 25%
In 2010, the sensor wafer sales increased clearly compared to the previous year.
Within sensor wafers, the rise in production volumes of the strategically
important SOI wafers was particularly positive. The use of sensors and the
products' requirement level are expected to continue growing. Sensor
applications are increasing in the automotive industry, and also particularly in
consumer electronics products like smart phones, cameras, games consoles, and
other mobile devices.
Sales of semiconductor wafers increased particularly strongly during 2010 after
the collapse in demand that took place in 2009.
The shipment volumes of these wafers increased and the prices rose due to strong
semiconductor market. Towards the end of the year, the growth of demand
stabilised, and in the future growth expectations are more moderate.
In 2010, technology sales had a relatively smaller role than in previous years
and its net sales consisted of crystal sales.
Sales per market area
1.10.- 1.10.- 1.1.- 1.1.- 1.1.-
31.12.10 31.12.09 31.12.10 31.12.09 31.12.08
North America 41% 41% 43% 37% 39%
Europe 22% 30% 25% 33% 33%
Asia 37% 29% 32% 30% 28%
In 2010, Okmetic's sales increased in all market areas. The proportion of Europe
of the total net sales decreased.
PROFITABILITY
In financial year 2010, Okmetic group's operating profit was 9.8 (0.3) million
euro. The operating profit accounted for 12.1 (0.5) percent of net sales. The
profit for the period amounted to 10.0 (-0.5) million euro. Earnings per share
were 0.60 (-0.03) euro.
FINANCING
The group's financial situation is good. The net cash flow from operations
amounted to 16.6 (6.3) million euro in 2010.
In April, the group prematurely repaid 1.2 million euro worth of installments
towards its long-term interest-bearing loans. The group's liabilities amounted
to 1.0 (2.5) million euro at the end of the year.
At the end of the year, cash and cash equivalents amounted to 14.0 (7.3) million
euro. In addition to this, the company had 5.0 million euro worth of investments
in fixed-income funds. On 31 December 2010, the company's cash and cash
equivalents exceeded the interest-bearing liabilities by 18.0 million euro (on
31 December 2009 cash and cash equivalents were 4.8 million euro higher than
interest-bearing liabilities).
Return on equity amounted to 18.6 (-1.0) percent. At the end of the year, the
group's equity ratio was 76.6 (78.9) percent. Equity per share was 3.49 (2.89)
euro.
INVESTMENTS
In 2010, Okmetic's capital expenditure amounted to 2.2 (1.7) million euro. Most
of the investments were allocated to increasing the production capacity of
sensor wafers and to normal maintenance investments.
PRODUCT DEVELOPMENT
In 2010, the company expensed 2.1 (2.1) million euro in long-term product
development projects. Product development costs accounted for 2.6 (3.9) percent
of net sales. Product development costs have not been capitalised.
In 2010, Okmetic's development work focused on SOI wafers with new additional
features and on other further processed wafers as well as on improving the
production processes.
Okmetic engaged in several strategic research projects with customers, research
institutes, and other partners and participated both in national technology
programmes funded by Tekes, the leading Finnish funding agency for technology
and innovation, and international EU-funded programmes.
Okmetic's research and development work increases its technological expertise
and competitiveness. Research and development focuses on developing new products
and improving the features and the production process performance of the
existing products, which aims at extending the products' life cycle.
PERSONNEL
The significance of the personnel as a factor contributing to Okmetic's success
has been recognised in company strategy, and is emphasised in the values of the
company and in its human resources and quality policies.
On average, Okmetic employed 345 people in 2010 (2009: 337 and 2008: 364). At
the end of the year, 305 of the group's employees worked in Finland, 35 in the
US, and two in Japan.
Women accounted for 27 (29) percent and men 73 (71) percent of the personnel.
White-collar employees accounted for 36 (40) percent and blue-collar employees
for 64 (60) percent. The average age of Okmetic's employees was 42 (41) years
and the average length of employment was 10.3 (9.6) years.
Salaries and bonuses are based on the level of skills required in each position
throughout the organisation. In 2010, salaries and bonuses amounted to 19.8
million euro (2009: 15.9 million euro and 2008: 18.0 million euro) including
1.3 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. Monthly
targets are set for the blue-collar employees' productivity, and the resulting
bonuses are paid once a month. White-collar employees are paid bonuses according
to group level targets. 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 annual income depending on the personnel group.
ENVIRONMENTAL ISSUES
Okmetic recognises the environmental risks associated with its business. The
company devises both a universal risk management plan and plans for individual
processes. Ecologically sustainable operations boost 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 business in line with continuous improvement
principles. Planning of preventive measures is fundamental to managing
environmental risks.
Okmetic keeps an eye on environmental legislation development both in Finland
and internationally, and adjusts its business to meet the latest regulations.
For example, 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 and ISO 14001 certified quality and
environmental systems, and the company's plants have been built with
environmental considerations in mind. Okmetic expects its most important
subcontractors and suppliers to comply with the ISO 9001 and ISO 14001
certifications.
Okmetic recognises that the use of its main raw material, polysilicon, has an
important environmental impact. The company does not produce essential volumes
of emissions or waste, and the resulting costs are not significant from a
business point of view. On a day-to-day level, Okmetic strives to use materials,
water, and electricity as efficiently as possible. The company strives to
recycle arising waste.
Okmetic had no major environmental non-conformities in 2010. The acceptable
emission limit values set for waste water treatment were exceeded on two
occasions. In these instances the recorded values were nevertheless only just
over the acceptable limits and corrective actions were implemented expediently.
Okmetic's environmental management system was found to meet the requirements of
the company's demanding international customers. The company is not subject to
emissions trading regulations.
The key figures on environmental protection at the Vantaa plant in 2010 are as
follows:
Energy consumption (GWh): electricity 34.2 (29.1), district heating 3.1 (2.5)
Water consumption (tm3): water 558 (485), waste water 477 (365).
Waste volumes (t): hazardous waste 187 (125), landfill waste 170 (68), recycled
waste 244 (177).
BUSINESS RISKS
Okmetic's silicon wafer sales are targeted at the sensor and semiconductor
producers in 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.
Irregular income recognition of significant technology projects in technology
sales causes considerable variation in the results of the review periods. In
recent times, however, technology sales have developed towards crystal sales,
and this leads to a more even net sales development than before.
The success of the sales strategy hinges on trouble-free manufacturing.
Okmetic's share of the global silicon wafer market is around one percent and the
market prices have a notable effect on the price development of Okmetic's
products. The majority of sales are conducted in US dollars. The Japanese yen is
another notable trading currency. Despite hedging, the company remains exposed
to exchange rate fluctuations.
Great volumes of electricity are used in Okmetic's production. Despite hedging,
the company is also exposed to fluctuations in the price of electricity.
SHARES AND SHAREHOLDERS
On 31 December 2010, Okmetic Oyj's paid-up share capital, as entered in the
Finnish Trade Register, was 11,821,250.00 euro. The share capital is divided
into 17,287,500 shares. The number of shares rose by 400,000 with the directed
share issue entered into the Finnish Trade Register on 4 March 2010.
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 2010
Shares, Share,
pcs %
Ilmarinen Mutual Pension
Insurance Company 1,651,626 9.6
Mandatum Life Insurance
Company 800,000 4.6
The State Pension Fund 600,000 3.5
Etra-Invest Oy Ab 500,000 2.9
Veritas Pension
Insurance Company 490,000 2.9
Varma Mutual Pension
Insurance Company 477,175 2.8
Okmetic Management Oy 400,000 2.3
OP-Suomi Arvo Equity Fund 390,000 2.3
Sijoitusrahasto
Taaleritehdas Arvo
Markka Osake 375,000 2.2
Nordea Nordic Small
Cap Fund 351,500 2.0
Foreign investors and
nominee accounts held by
custodian banks 2,559,467 14.8
Others 8,687,632 50.3
Total 17,287,500 100.0
Shareholders by group on
31 Dec 2010
Shares, Share,
pcs %
Corporations 3,242,780 18.8
Financial and insurance
institutions 2,544,232 14.7
Public organisations 3,523,676 20.4
Non-profit organisations 345,328 2.0
Households 5,072,017 29.3
Foreign investors and
nominee accounts held by
custodian banks 2,559,467 14.8
Total 17,287,500 100.0
Distribution of shareholding on
31 Dec 2010
% of
Number of % of Shares, share
Shares, pcs shareholders shareholders pcs capital
1-100 554 12.0 41,988 0.2
101-500 1,955 42.2 592,412 3.4
501-1,000 914 19.7 765,186 4.4
1,001-5,000 951 20.5 2,166,957 12.5
5,001-10,000 141 3.0 1,063,209 6.2
10,001-50,000 86 1.9 1,736,382 10.0
50,001-100,000 4 0.1 287,675 1.7
100,001-500,000 19 0.4 5,292,591 30.6
500,001- 4 0.1 5,341,100 30.9
Total 4,628 100.0 17,287,500 100.0
SHARE PRICE DEVELOPMENT AND TRADING
A total of 14.0 (4.3) million shares were traded between 1 January and 31
December 2010, representing 81.4 (25.6) percent of the share total of 17.3
million. The lowest quotation of the year was 2.98 (1.81) euro, and the highest
5.70 (3.20) euro, with the average being 4.22 (2.54) euro per share. The closing
quotation for the year was 5.29 (3.20) euro. At the end of the year, the market
capitalisation amounted to 91.5 (54.0) million euro.
Okmetic is listed on the Small Cap list of NASDAQ OMX Helsinki Ltd under the
trading code OKM1V. According to the Global Industry Classification Standard
(GICS), which the exchange uses, Okmetic Oyj is listed under the Information
Technology sector. The company's website can be found at www.okmetic.com.
DISCLOSURE OF HOLDINGS
On 30 November 2010, the total holdings that Outokumpu Oyj had in the company
lowered from 15.65 percent to 0.00 percent. Outokumpu Oyj owned previously
2,705,000 shares and now it owns 0 shares in Okmetic Oyj.
On 3 September 2010, the total holdings that OP-Suomi Arvo Equity Fund, a mutual
investment fund governed by OP Fund Management Company Ltd, which is a
subsidiary of OP Bank Group Central Cooperative, had in the company lowered to
800,000 shares. This corrensponds to 4.63 percent of Okmetic's share capital and
voting rights.
Due to Okmetic's share issue the total holdings of foreign Accendo Capital Sicav
Sif lowered on 4 March 2010 to 14.81 percent of Okmetic's share capital and
voting rights.
OWN SHARES
On 11 February 2010, the board of directors decided on a purchase scheme of the
company's own shares, based on the authorisation given at the extraordinary
general meeting on 6 November 2008. It was decided that the aggregate number of
shares repurchased will not be more than 280,000. The repurchase started at
Nasdaq OMX Helsinki on 18 February 2010 and ended on 6 April 2010. A total of
203,244 shares were purchased, which is approximately 1.2 percent of Okmetic's
all shares and votes. A total amount of 668,007 euro was used to purchase
shares, making the average rate for acquired shares 3.29 euro.
The repurchased shares may be used in developing the company's capital
structure, as compensation in possible corporate acquisitions or in other
business arrangements, as part of the company's incentive scheme or transferred
or cancelled in other ways.
OTHER EVENTS IN THE FINANCIAL YEAR
The District Court of Helsinki acquitted President Kai Seikku in a trial, in
which Seikku was charged with aggravated abuse of insider information. The
charge was related to Seikku's actions while he was still working for his
previous employer. The prosecutor appealed the decision in January 2011.
EVENTS AFTER THE END OF THE FINANCIAL YEAR
On 20 January 2011, the board of directors decided on furnace investments worth
of 3.3 million euro. The investment increases Okmetic's crystal growing
capacity.
At the same meeting, the board of directors confirmed the payments for 2010
based on the executive management group's share reward programme of 2010-2011.
Based on the authorisation given by the extraordinary general meeting on 6
November 2008, the board of directors decided to transfer some of the company's
own shares to the participants of the share reward programme without payment.
The number of transferred shares is approximately 135,000. It is estimated that
the shares will be transferred on 11 February 2011.
MANAGEMENT AND AUDITOR
In 2010, Okmetic's board of directors comprised of Henri Österlund as the
chairman, Karri Kaitue as the vice chairman until 7 April 2010, Esa Lager as the
vice chairman since 7 April 2010, and Tapani Järvinen, Hannu Martola, and Pekka
Salmi as members of the board.
Kai Seikku has been acting as the President of Okmetic Oyj since 25 January
2010. Deputy to the President, Executive Vice President, Customers and Markets,
Mikko Montonen handled the duties of President 27 October 2009 - 24 January
2010.
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, 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 auditors are 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 2010, the parent
company's distributable earnings amount to 24.2 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 0.30 euro per share for 2010, which,
based on the 17,287,500 shares registered on 10 February 2011, amount to 5.2
million euro.
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 31 DECEMBER 2010
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 2009 except for the
effect of changes required by the adoption of the new or revised standards and
interpretations effective in 2010. Of these the most relevant are:
-IFRS 3 (revised), Business Combinations.
-IAS 27 (revised), Consolidated and Separate Financial Statements.
The management's view is that the adoption of the standards and interpretations
mentioned above has no significant effect on the figures presented for the
reporting period.
Okmetic Management Oy, founded and owned by Okmetic's top management, has been
added into the consolidated financial statements due to the shareholders'
agreement signed between Okmetic Management Oy and Okmetic Oyj.
The share-based incentive schemes, which were implemented in 2010, are accounted
for in accordance with IFRS 2, Share-based Payment -standard. The benefits
granted through these arrangements are measured at fair value at the grant date
and recognised as an expense over the vesting period.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1,000 euro 1.10.- 1.10.- 1.1.- 1.1.-
31.12.10 31.12.09 31.12.10 31.12.09
Net sales 23,072 13,812 80,907 54,361
Cost of sales -17,783 -12,602 -62,274 -47,883
Gross profit 5,288 1,210 18,633 6,478
Other income
and expenses -2,530 -1,407 -8,832 -6,208
Operating
profit/loss 2,758 -197 9,801 270
Financial income
and expenses 213 1 10 -860
Profit/loss
before tax 2,972 -196 9,811 -590
Income tax -826 -148 141 77
Profit/loss
for the
period 2,146 -344 9,952 -513
Other
comprehensive
income:
Translation
differences 118 73 624 -220
Total
comprehensive
income for
the period 2,264 -271 10,576 -733
Profit/loss for
the period
attributable
to:
Equity holders
of the parent
company 2,146 -344 9,952 -513
Total
comprehensive
income
attributable
to:
Equity holders
of the parent
company 2,264 -271 10,576 -733
Basic earnings
per share,
euro 0.13 -0.02 0.60 -0.03
Diluted
earnings per
share, euro 0.12 -0.02 0.58 -0.03
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro 31 Dec, 31 Dec,
2010 2009
Assets
Non-current assets
Property, plant, and
equipment 29,069 33,174
Other receivables 2,441 3,398
Total non-current
assets 31,510 36,572
Current assets
Inventories 9,987 7,164
Receivables 15,674 10,950
Financial assets
at fair value
through profit
or loss 5,004 -
Cash and cash
equivalents 14,043 7,307
Total current assets 44,708 25,422
Total assets 76,217 61,994
Equity and liabilities
Equity
Equity attributable to
equity holders of the
parent company
Share capital 11,821 11,821
Other equity 46,420 36,921
Total equity 58,242 48,742
Liabilities
Non-current liabilities 1,245 3,143
Current liabilities 16,730 10,109
Total liabilities 17,976 13,252
Total equity and
liabilities 76,217 61,994
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro 1 Jan- 1 Jan-
31 Dec, 2010 31 Dec, 2009
Cash flows from operating
activities:
Profit/loss before tax 9,811 -590
Adjustments 6,795 7,183
Change in working
capital 210 289
Financial items -279 -567
Tax paid 58 -1
Net cash from operating
activities 16,594 6,315
Cash flows from investing
activities:
Purchases of property,
plant, and equipment -2,173 -1,694
Proceeds from sale of
property, plant, and
equipment - 641
Investments in fixed-
income funds -5,000 -
Net cash used in
investing activities -7,173 -1,053
Cash flows from financing
activities:
Repayments of long-term
borrowings -1,500 -14,823
Payments of finance lease
liabilities -39 -117
Share issue 1,200 -
Repurchase of own shares -1,868 -
Dividends paid -834 -844
Net cash used in financing
activities -3,041 -15,784
Increase(+) /
decrease(-) in cash and
cash equivalents 6,381 -10,523
Exchange rate changes 355 -145
Cash and cash
equivalents at
the beginning
of the period 7,307 17,975
Cash and cash
equivalents at
the end of the
period 14,043 7,307
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to equity holders of parent company
Share Share Reserve Trans- Retained Total
capital pre- for in- lation earnings
mium vested differ-
1,000 euro unre- ences
stricted
equity
Balance at
31 Dec,
2009 11,821 20,045 - 415 16,461 48,742
Profit/loss
for the
period 9,952 9,952
Translation
differences 624 624
Total
comprehen-
sive income
for the
period 624 9,952 10,576
Share issue 1,200 1,200
Repurchase
of own
shares -1,868 -1,868
Share-
based
incentive
schemes 426 426
Dividend
distribution -834 -834
Balance at
31 Dec,
2010 11,821 20,045 1,200 1,039 24,137 58,242
Balance at
31 Dec, 2008 11,821 20,115 - 635 17,818 50,389
Profit/loss
for the
period -513 -513
Translation
differences -220 -220
Total
comprehen-
sive income
for the
period -220 -513 -733
Dividend
distribution -844 -844
Equity
component of
convertible
loan notes -70 -70
Balance at
31 Dec,
2009 11,821 20,045 - 415 16,461 48,742
CHANGES IN PROPERTY, PLANT, AND EQUIPMENT
1,000 euro 1 Jan- 1 Jan-
31 Dec, 31 Dec,
2010 2009
Carrying amount at the
beginning of the period 33,174 38,848
Additions 2,232 1,448
Disposals -74 -
Depreciation -6,681 -6,936
Exchange differences 419 -187
Carrying amount at the
end of the period 29,069 33,174
CHANGES IN FINANCIAL LIABILITIES
1,000 euro 1 Jan- 1 Jan-
31 Dec, 31 Dec,
2010 2009
Carrying amount
at the beginning
of the period 2,538 17,389
Repayment of loans from
financial institutions -1,499 -13,806
Repayments of subordinated loans - -928
Changes in finance lease
liabilities -39 -117
Carrying amount at the end of
the period 1,000 2,538
DIVIDENS PAID
In April 2010, the company distributed a dividend of 0.8 million euro of the
profit accrued in 2009, representing a 0.05 euro dividend per share.
In April 2009, a dividend of 0.8 million euro of the profit accrued in 2008 was
distributed, representing a 0.05 euro dividend per share.
COMMITMENTS AND CONTINGENCIES
1,000 euro 1 Jan- 1 Jan-
31 Dec, 31 Dec,
2010 2009
Loans secured with collaterals 1,000 2,500
Collaterals 8,073 8,073
Off-balance sheet lease
commitments 245 83
Capital commitments 2,190 111
Nominal values of
derivative contracts
Currency options, call 15,244 -
Currency options, put 18,034 -
Currency forward
agreements - 1,385
Electricity derivatives 2,038 2,520
Interest rate swaps - 6,429
Fair values of derivative
contracts
Currency options, call 184 -
Currency options, put -595 -
Currency forward
agreements - -4
Electricity derivatives 544 -258
Interest rate swaps - -49
The contract price of the derivatives has been used as the nominal value of the
underlying asset. Derivative contracts are for hedging.
RELATED PARTY TRANSACTIONS
In January-December, the compensation of top management and the executive
management group amounted to 2,815,000 euro (1,497,000 euro). In 2010,
employment benefits included share reward programme costs, which amounted to
1,275,000 euro.
Okmetic Management Oy, owned by Okmetic's top management, and one of its
founders have been granted a loan of 0.9 million euro by Okmetic Oyj.
KEY FIGURES SHOWING FINANCIAL PERFORMANCE
1,000 euro 1 Jan- 1 Jan-
31 Dec, 31 Dec,
2010 2009
Net sales 80,907 54,361
Change in net sales
compared to the previous
year's period, % 48.8 -19.9
Export and foreign
operations share of
net sales, % 95.8 95.4
Operating profit before
depreciation (EBITDA) 16,482 7,206
% of net sales 20.4 13.3
Operating profit 9,801 270
% of net sales 12.1 0.5
Profit/loss before tax 9,811 -590
% of net sales 12.1 -1.1
Return on equity, % 18.6 -1.0
Return on investment, % 18.2 0.0
Non-interest-bearing
liabilities 16,976 10,715
Net interest-bearing
liabilities -18,047 -4,770
Net gearing ratio, % -31.0 -9.8
Equity ratio, % 76.6 78.9
Capital expenditure 2,232 1,448
% of net sales 2.8 2.7
Depreciation 6,681 6,936
Research and development
expenditure 1) 2,110 2,134
% of net sales 2.6 3.9
Average number of personnel
during the period 345 337
Personnel at the end of the
period 342 327
1) Research and development expenditure has been presented in gross figures and
only long-term projects based on research program have been taken into account.
KEY FIGURES PER SHARE
Euro 31 Dec, 31 Dec,
2010 2009
Earnings per
share, basic 0.60 -0.03
Earnings per
share, diluted 0.58 -0.03
Equity per share 3.49 2.89
Dividend per share 0.30 0.05
Dividends/earnings, % 51.7 -164.7
Effective dividend
yield, % 5.7 1.6
Price/earnings(P/E) 8.9 -105.4
Share performance
(1 Jan-)
Average trading price 4.22 2.54
Lowest trading price 2.98 1.81
Highest trading price 5.70 3.20
Trading price
at the end of
the period 5.29 3.20
Market capitalisation
at the end of the
period, 1,000 euro 91,451 54,040
Trading volume
(1 Jan-)
Trading volume,
transactions,
1,000 pcs 14,009 4,316
In relation to weighted
average number of
shares, % 81.4 25.6
Trading volume,
1,000 euro 59,124 10,957
The weighted average
number of shares during
the period under review
adjusted by the share
issue, 1,000 pcs 17,220 16,888
The number of shares at
the end of the period
adjusted by the share
issue, 1,000 pcs 17,288 16,888
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 10-12/10 7-9/10 4-6/10 1-3/10
Net sales 23,072 21,626 19,688 16,521
Compared to previous
quarter, % 6.7 9.8 19.2 19.6
Compared to corresponding
period last year, % 67.0 77.7 45.4 11.3
Operating profit 2,758 3,891 2,467 684
% of net sales 12.0 18.0 12.5 4.1
Profit before tax 2,972 2,934 2,987 918
% of net sales 12.9 13.6 15.2 5.6
Net cash flow generated
from:
Operating activities 6,730 5,573 1,874 2,417
Investing activities -6,536 -547 -66 -23
Financing activities -3 -5 -2,406 -627
Increase/decrease in cash
and cash equivalents 191 5,021 -599 1,767
Personnel at the
end of the period 342 340 373 329
1,000 euro 10-12/09 7-9/09 4-6/09 1-3/09
Net sales 13,812 12,171 13,538 14,841
Compared to previous
quarter, % 13.5 -10.1 -8.8 -5.8
Compared to corresponding
period last year, % -12.3 -32.7 -20.3 -12.9
Operating profit/loss -197 -748 688 527
% of net sales -1.4 -6.1 5.1 3.6
Profit/loss before tax -196 -1,257 46 818
% of net sales -1.4 -10.3 0.3 5.5
Net cash flow generated
from:
Operating activities 1,858 192 4,761 -496
Investing activities -28 -87 -786 -152
Financing activities -11,821 -22 -3,905 -37
Increase/decrease in cash
and cash equivalents -9,991 83 70 -685
Personnel at the end of
the period 327 335 343 338
DEFINITIONS OF KEY FINANCIAL FIGURES
Operating profit before depreciation = Operating profit + depreciation
(EBITDA)
Return on equity, % (ROE) = Profit/loss for the period from
continuing operations x 100/
------------------------------------------
Equity(Average for the period)
Return on investment, % (ROI) = (Profit/loss before tax + interest and
other financial expenses) x 100/
------------------------------------------
Balance sheet total - non-interest
bearing liabilities(average for the
period)
Equity ratio, % = Equity x 100/
------------------------------------------
Balance sheet total - advances received
Net 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 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 Thursday, 10
February 2010 at 2.00 p.m. at Okmetic's head office, Piitie 2, 01510 Vantaa. The
result will be presented by President Kai Seikku. 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 2011
Interim report 1-3/2011 (1Q) 27 April 2011
Interim report 1-6/2011 (2Q) 26 July 2011
Interim report 1-9/2011 (3Q) 25 October 2011
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#1487551]
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