2010-02-11 12:00:00 CET
2010-02-11 12:03:31 CET
REGULATED INFORMATION
Okmetic Oyj - Financial Statement Release
OKMETIC´S FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2009
OKMETIC OY STOCK EXCHANGE RELEASE 11 FEBRUARY 2010 AT 1 P.M.
OKMETIC´S FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2009
The net sales for the financial year amounted to 54.4 million euro (67.9 million
euro) and profit/loss for the period was -0.5 million euro (5.8 million euro).
Earnings per share were -0.03 euro (0.34 euro).
KEY FIGURES
1,000 euro 1.10.- 1.10.- 1.1.- 1.1.- 1.1.-
31.12.09 31.12.08 31.12.09 31.12.08 31.12.07
Net sales 13,812 15,751 54,361 67,867 64,652
Operating profit
before
depreciation
(EBITDA) 1,546 2,877 7,206 15,517 15,216
Operating
profit/loss -197 1,108 270 8,476 7,121
% of net sales -1.4 7.0 0.5 12.5 11.0
Profit/loss for
the period -344 -1,117 -513 5,825 5,305
Earnings per
share, euro -0.02 -0.07 -0.03 0.34 0.31
Net cash flow
from operating
activities 1,858 2,878 6,315 13,177 8,305
Net interest-
bearing
liabilities -4,770 -586 -4,770 -586 8,952
Average number of
personnel during
the period 330 366 337 364 362
REVIEW IN BRIEF
- Net sales in January-December 2009 were 54.4 million euro (67.9 million euro)
and in the last quarter 13.8 million euro (15.8 million euro).
- Okmetic´s sensor wafer sales in January-December 2009 remained slightly behind
the previous year´s level. The proportion of sensor wafer sales of Okmetic´s
total sales grew. After a drop in the first quarter, semiconductor wafer sales
were on the rise throughout the latter part of the year. However, the total
semiconductor wafer sales were clearly lower than in 2008. Okmetic´s technology
sales remained slightly behind the level of 2008.
- Profit/loss for the period was -0.5 million euro (5.8 million euro). In the
last quarter the loss for the period was -0.3 million euro (-1.1 million euro).
- Non-recurring items weakened the profit for the period by 0.3 million euro.
The result of the last quarter included compensation of 0.4 million euro for
terminated employment contracts.
- As a result of the personnel negotiations the number of the clerical workers
was reduced by approximately 20 persons in the last quarter of the year.
- Earnings per share in 2009 were -0.03 euro (0.34 euro).
- The net cash flow from operations in January-December 2009 amounted to 6.3
million euro (13.2 million euro) and in the last quarter to 1.9 million euro
(2.9 million euro).
- At the end of the period, the company´s cash and cash equivalents exceeded the
interest-bearing liabilities by 4.8 million euro (0.6 million euro).
- In December, the company prematurely repaid 10 million euro worth of
installments towards its long-term interest-bearing loans.
- At the end of the year Okmetic has agreed on two significant silicon mono
crystal sales contracts for year 2010, which total to 12 million euro.
- M.Sc. (Econ.) Kai Seikku was appointed Okmetic´s President on 25 January
2010. He started his work at Okmetic immediately.
- On 25 January 2010, the board of directors decided on a directed share issue
of 400,000 shares to the company founded by top management. This company was
allocated a 0.8 million euro loan for the purchase of the shares.
- On 11 February 2010, the board of directors has decided to repurchase no more
than 280,000 company´s own shares. The repurchase of own shares will start on
18 February 2010 at the earliest and it will end on 6 May 2010 at the latest.
- On 11 February 2010, the board of directors decided on executive management
group´s share-based incentive program for 2010 and 2011.
- On 11 February 2010, the board of directors has approved of 3.5 million euro
investment in expansion of silicon-on-insulator (SOI) wafer production.
- On 11 February 2010, the board of directors has decided to propose to the
annual general meeting that the board of directors should be granted the
authorisation to decide on the issuance of 3.4 million shares and on the
repurchase of around 1.7 million of the company´s own shares.
- On 11 February 2010, the board of directors has decided to propose to the
annual general meeting that a dividend of 0.05 euro per share be paid for
financial year 2009.
- Net sales for the first half of 2010 are expected to amount to around 30
million euro. Operating profit and net cash flow from operating activities are
estimated to be clearly positive.
MARKETS
Customer industries sensor, semiconductor and solar energy industries
Sensor industry
The shipments in the sensor industry increased in volume by 10 percent, but the
sales value in US dollars decreased by 8.6 percent. The development in sensor
sales has been influenced by the increased use of micro sensors in many consumer
electronics products. It is estimated that the sensor shipment volumes have
continued to increase in the last quarter. The value in sensor sales in 2010 is
expected to reach at least the 2008 level. In terms of quantity, the sensor
shipments will rise to a record high level. (iSuppli)
Several microelectromechanical (MEMS) products are currently being developed
within the sensor segment and they have higher growth rates than other sensors.
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
At the beginning of 2009, the semiconductor industry experienced its strongest
fall in demand so far. The demand grew as the year proceeded and, towards the
end of the year, monthly sales value rose to the level of previous years. The
decline in annual sales in the semiconductor industry in US dollars was around
10 percent compared to the previous year. (IC Insights)
In 2010, sales in the semiconductor industry are generally estimated to grow
over 10 percent. If these estimations become reality, the sales in the
semiconductor industry will surpass last year´s level.
Solar energy industry
The strong growth in the solar energy industry came to an end. The total output
of the panels sold in 2009 was 6,37 GW. This is five percent more than in 2008.
In addition to the general economic situation, the demand in the field fell due
to the diminishing financial support by governments to solar cell produced
electricity. In the last quarter of the year the solar energy industry continued
to rise from the low point of the beginning of the year. (Solarbuzz)
The demand and the utilisation rate of plants in the solar energy industry have
gradually improved. The price level continues to be low. This creates cost
pressure for the whole industry and the level of new investments is estimated to
stay low. Governmental decisions on subsidies have a significant impact on the
solar energy industry. This brings certain insecurity to the development of the
market.
Silicon wafer industry
The market development of the silicon wafer industry is monitored in terms of
surface area. According to the report published in November by SMG, the group of
silicon wafer suppliers in SEMI, the volume of wafer shipments in the silicon
wafer industry in the third quarter soared up to 1,972 million square inches,
which was 17 percent higher than the shipment volume in the previous quarter.
These shipment volumes in the third quarter were 13 percent below the volume of
the corresponding time period in 2008. Over the last part of the year, the
silicon wafer markets are estimated to have returned to the average level of
2008.
The demand volume for silicon wafers follows the shipment volumes of customer
industry, so the volumes in silicon wafer industry are also expected to continue
its recovery. Along with the increase in the semiconductor and sensor
industries, the demand in the silicon wafer market will most likely remain at
the good level in the early part of 2010.
Okmetic
Okmetic´s sales of sensor wafers have remained strong despite the market
situation. Sales of semiconductor wafers decreased significantly due to the
general decline in demand at the beginning of 2009. The semiconductor wafer
sales, however, rapidly recovered along with the markets towards the end of the
year. In a challenging market situation of 2009 Okmetic succeeded to increase
its market share in the product areas which are important to the company.
Negotiations for new technology sales contracts were continued.
PROJECTIONS FOR THE NEAR FUTURE
Okmetic specialises in the manufacture of demanding sensor wafers. The leading
position as the supplier of advanced sensor wafers creates a sound basis for the
company and growth potential when the wafer industry is returning to a growth
track. This is expected to happen this year. Semiconductor wafer shipments are
expected to continue to grow at the beginning of the year 2010. As previously
announced, around 12 million euro silicon mono crystal sales, which is included
in technology sales, have already been agreed with customers.
Net sales for the first half of 2010 are expected to amount to around 30 million
euro. Operating profit and net cash flow from operating activities are estimated
to be clearly positive.
EVENTS AFTER THE END OF THE FINANCIAL YEAR
M.Sc. (Econ.) Kai Seikku was appointed Okmetic´s President on 25 January 2010.
He started his work at Okmetic immediately.
On 25 January 2010, the board of directors decided on a directed share issue of
400,000 shares at the share price of three euro to the company founded by the
top management in relation to the incentive scheme aimed at this group. Okmetic
granted a loan of 0.8 million euro to the company for the purchase of the
shares.
On 11 February 2010, the board of directors has 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. The aggregate number of shares repurchased
will not be more than 280,000. The repurchase will start on 18 February 2010 at
the earliest and it will end on 6 May 2010 at the latest.
On 11 February 2010, the board of directors decided on a share-based incentive
scheme for the executive management group for the years 2010 and 2011 as a part
of the groups´s incentive and engagement scheme. The shares potentially assigned
as bonuses will be the company´s own shares repurchased in the stock market, so
that the incentive scheme does not have a weakening impact on the number of
shares.
On 11 February 2010, the board of directors has approved of 3.5 million euro
investment in expansion of silicon-on-insulator (SOI) wafer production. The
investment reinforces Okmetic´s position as the sensor wafer market leader.
Board of directors´ proposals to the annual general meeting to be held on
Wednesday, 7 April 2010:
The board´s authorisation to decide on new issues and other share entitlements
has been presented in this financial statement release under the section
´Authorisation of the board of directors to increase share capital´.
The board proposes that company´s auditors will be PricewaterhouseCoopers Oy,
Authorised Public Accountants, which has appointed Mikko Nieminen, Authorised
Public Accountant, to act as the principal auditor.
The board proposes that a dividend of 0.05 euro per share be paid for financial
year 2009.
SALES
Okmetic´s net sales in 2009 decreased by 19.9 percent from the previous year
(increased by 5.0%), amounting to 54.4 million euro (67.9 million euro). The
global transitional period in the economy and the following general
deterioration of the market situation, starting at the end of 2008, caused the
drop in the net sales. Okmetic´s market share grew in the product areas which
are important to the company. The drop in the net sales was considerably smaller
than in the field in general.
Sales per customer area
1.10.- 1.10.- 1.1.- 1.1.- 1.1.-
31.12.09 31.12.08 31.12.09 31.12.08 31.12.07
Sensors 42% 41% 41% 37% 34%
Semiconductors 43% 36% 31% 38% 56%
Technology 15% 23% 28% 25% 10%
Sensor wafer sales remained slightly behind the previous year. The proportion of
sensor wafer sales of Okmetic´s total sales grew. The use of sensors and
products´ requirements are believed to continue their growth. Sensor
applications are becoming more popular in automotive industry and especially in
consumer electronics products such as mobile phones, cameras, game consoles and
other portable devices.
The overall weak economic situation affected especially semiconductor wafer
sales. Due to strong competition the shipment volumes and sales prices of these
wafers continued to drop in line with the previous year. Semiconductor wafer
sales were still increasing after the low point in the first quarter of 2009.
The revenue recognition of the technology project in technology sales, which
started in 2007, was finalised. The most significant entries of the project had
already been posted in previous years. Technology sales remained slightly behind
the 2008 level. The company has agreed on two significant silicon mono crystal
sales contracts for year 2010, which total to 12 million euro.
Net sales per market area
1.10.- 1.10.- 1.1.- 1.1.- 1.1.-
31.12.09 31.12.08 31.12.09 31.12.08 31.12.07
North America 41% 42% 37% 39% 48%
Europe 30% 30% 33% 33% 32%
Asia 29% 29% 30% 28% 20%
Traditionally Okmetic has strong market positions in the North America and
Europe. The proportion of Asia of the total net sales continued to increase in
2009, reflecting the general change of focus in global economy.
PROFITABILITY
In 2009, Okmetic group´s operating profit was 0.3 million euro (8.5 million
euro). The operating profit accounted for 0.5 (12.5%) percent of net sales. The
loss for the period amounted to 0.5 million euro (profit 5.8 million euro).
Earnings per share were -0.03 euro (0.34 euro).
The group adjusted the costs and work force over the entire year to the
prevailing market situation. The company´s entire personnel were temporarily
laid off from one to six weeks in spring 2009. At the end of the year
approximately 20 clerical workers were given notice. At the same time, it was
decided that approximately 20 manual workers would be laid off until further
notice. However, the lay-offs were cancelled as the demand clearly recovered at
the turn of the year. Okmetic´s President left the company in October. The
changes in employments caused an additional cost of 0.4 million euro in the last
quarter and of 0.9 million euro in the financial year. The sale of fixed assets
boosted the profit for the period by 0.2 million euro in the first quarter of
the year. Earnings of 0.4 million euro were posted relating to the electricity
hedging.
Okmetic´s Oyj´s loan to its subsidiary Okmetic Inc., which was recorded as a net
investment until 2006, has resulted in an exchange loss recognised in the
translation differences under equity. At the beginning of 2009, the remaining
loss amounted to 1.1 million euro (1.3 million euro). The loan has been recorded
as a regular liability since 2006. The subsidiary has not repaid installments
towards the loan during 2009. The remaining 1.1 million euro of the exchange
loss will be expensed proportioned to the loan repayments.
FINANCING
The group´s financial situation is good. The net cash flow from operations
amounted to 6.3 million euro (13.2 million euro).
The group´s interest-bearing liabilities amounted to 2.5 million euro at the end
of the year (17.4 million euro). In December, the company prematurely repaid 10
million euro worth of installments towards its long-term interest-bearing loans.
In June, the last 0.9 million euro installment of the subordinated loans was
repaid.
At the end of the year, cash and cash equivalents amounted to 7.3 million euro
(18.0 million euro). On 31 December 2009, the group´s cash and cash equivalents
exceeded the interest-bearing liabilities by 4.8 million euro (on 31 December
2008 liabilities were 0.6 million higher than cash and cash equivalents).
Return on equity amounted to -1.0 percent (12.1% positive). The group´s equity
ratio strengthened, amounting to 78.9 percent (62.8%). Equity per share was
2.89 euro (2.98 euro).
INVESTMENTS
In 2009, Okmetic´s capital expenditure amounted to 1.7 million euro (2.6 million
euro). The majority of the capital expenditure focused on increasing the
company´s sensor wafer production capacity and on regular maintenance.
PRODUCT DEVELOPMENT
The company expensed 2.1 million euro (2.3 million euro) in long-term product
development projects in 2009. Product development costs accounted for 3.9
percent (3.3%) of net sales. Product development costs have not been
capitalised.
Okmetic´s research and development efforts are geared towards increasing 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.
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. In 2009 Okmetic launched
a new CAP-wafer and extended the performance of SOI product family and 200 mm
sensor products.
PERSONNEL
The personnel´s expertise and well-being are Okmetic´s strengths as well as
preconditions for the realisation of the company´s strategy and success in the
long term. The commitment to Okmetic by its personnel is demonstrated by the
improvement of several operational results, the low absence rate and lively
participation in the initiative scheme despite the adjustment actions affecting
the personnel in the financial year.
On average, Okmetic employed 337 people in 2009 (2008: 364 and 2007: 362). At
the end of the year, 296 of the group´s employees worked in Finland, 28 in the
US and three in Japan. As a result of the personnel negotiations the number of
the clerical workers was reduced by approximately 20 persons in the last quarter
of the year.
Twenty-nine percent (29%) of the personnel were women and seventy-one percent
(71%) were men. Clerical workers accounted for forty percent (36%) and manual
workers for sixty percent (64%). The average age of Okmetic´s employees was 41
(41) and the average length of employment was 9.6 (8.5) years.
Salaries and bonuses are based on the level of skills required in each position
throughout the organisation. Salaries and bonuses amounted to 15.9 million euro
(2008: 18.0 million euro and 2007: 18.1 million euro). The company´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 manual workers' productivity, and the resulting bonuses
are paid once a month. Clerical workers and management are paid bonuses
according to targets relating to the group's profitability, financial situation
and operative performance. The bonuses payable for meeting the group's financial
targets account for 6 - 15 percent of the employees' annual income, at the most,
depending on the personnel group. Operative targets are set individually from
managerial level upwards. Any bonuses paid as a result of meeting these can
account for no more than 6-15 percent of the managers' annual income. Based on
the results achieved in 2009, bonuses were paid only to the employees.
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 also factored into the
further development of products and business in line with continuous improvement
principles. Planning preventive measures is fundamental to managing
environmental risks.
Okmetic keeps an eye on developments in environmental legislation both in
Finland and internationally, and adjusts its business to meet the latest
regulations. For example, Okmetic follows the chemicals regulations of the
European Union (REACH) and all Okmetic´s products meet the requirements set in
the RoHS-directive.
Okmetic has ISO 9001:2000, 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 9001:2000- 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 2009. 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 measures 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 2009 are as
follows:
Energy consumption (GWh): electricity 29.1 (28.6), district heating 2.5 (2.2)
Water consumption (tm3): water 485 (520), waste water 365 (450)
Waste volumes (t): hazardous waste 125 (230), landfill waste 68 (57), recycled
waste 177 (190).
BUSINESS RISKS
The 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. Irregular
income recognition of significant technology projects in technology sales causes
considerable variation in the results of the review periods. The success of the
sales strategy hinges on trouble-free contract manufacturing.
Okmetic's share of the global silicon wafer market is around one percent and the
market prices have a notable effect on the price development of 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
vulnerable to exchange rate fluctuations.
Great volumes of electricity are used in Okmetic's production. Despite hedging,
the company is also vulnerable to fluctuations in the price of electricity.
SHARES AND SHAREHOLDERS
On 31 December 2009, 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 16,887,500 shares. 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 2009
Shares, pcs Share, %
Outokumpu Oyj 2,705,000 16.0
Ilmarinen Mutual Pension Insurance Company 1,533,626 9.1
OP-Suomi Arvo Equity Fund 1,185,401 7.0
Mandatum Life Insurance Company 800,000 4.7
Etra Invest Oy Ab 500,000 3.0
The State Pension Fund 500,000 3.0
Varma Mutual Pension Insurance Company 477,175 2.8
Arvo Finland Value Fund 400,000 2.4
Carnegie Share Fund 333,639 2.0
Finnish Industrial Investment Ltd. 320,750 1.9
Foreign investors and nominee accounts held by custodian
banks 3,885,372 23.0
Others 4,246,537 25.1
Total 16,887,500 100.0
Shareholders by group on 31 Dec 2009
Shares, pcs Share, %
Corporations 4,288,222 25.4
Financial and insurance institutions 2,457,669 14.6
Public organisations 2,537,001 15.0
Non-profit organisations 262,197 1.5
Households 3,457,039 20.5
Foreign investors and nominee accounts held by custodian
banks 3,885,372 23.0
Total 16,887,500 100.0
Distribution of shareholding on 31 Dec
2009
Number of % of Shares, % of share
Shares, pcs shareholders shareholders pcs capital
1-100 369 11.6 29,570 0.2
101-500 1,364 43.0 417,608 2.5
501-1,000 615 19.4 528,018 3.1
1,001-10,000 750 23.7 2,224,286 13.2
10,001-100,000 61 1.9 1,408,352 8.3
100,001-1,000,000 9 0.3 3,573,725 21.2
Over 1,000,000 4 0.1 8,705,941 51.5
Total 3,172 100.0 16,887,500 100.0
SHARE PRICE DEVELOPMENT AND TRADING
A total of 4.3 million shares (8.4 million shares) were traded between 1 January
and 31 December 2009, representing 25.6 percent (49.5%) of the share total of
16.9 million. The lowest quotation of the year was 1.81 euro (2.15 euro) and the
highest 3.20 euro per share (3.14 euro), with the average being 2.54 euro (2.63
euro). The closing quotation for the year was 3.20 euro (2.40 euro). At the end
of the year, the market capitalisation amounted to 54.0 million euro (40.5
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<http://www.okmetic.com/>.
OWN SHARES
The company has not repurchased any of its own shares.
On 11 February 2010, the board of directors has 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. The aggregate number of shares repurchased
will not be more than 280,000. The repurchase will start on 18 February 2010 at
the earliest and it will end on 6 May 2010 at the latest.
THE BOARD OF DIRECTORS´AUTHORISATION TO DECIDE ON THE REPURCHASE AND/OR THE
ACCEPTANCE AS PLEDGE OF THE COMPANY´S OWN SHARES
The shareholders participating in the extraordinary general meeting held on 6
November 2008 accepted the board of directors' proposal regarding the board's
authorisation to repurchase the company's own shares as follows:
The aggregate number of shares repurchased on the basis of the authorisation
cannot exceed 1,688,750 shares, which represents 10 percent of all the shares of
the company. The company and its subsidiaries together cannot at any time own
more than 10 percent of all of the company's registered shares.
Only unrestricted shareholders' equity can be used to repurchase the company's
own shares under the authorisation. Own shares can be repurchased at a price
determined by public trading on the day of repurchase or at another market-based
price.
The board of directors decides the method of repurchasing the company's own
shares as well as the other terms and conditions. Derivatives, for example, can
be used in the repurchase. Shares can be repurchased independently of the
shareholders' proportional share holdings (private placement). The authorisation
will remain in force until the annual general meeting of spring 2010 and in any
case not past 6 May 2010.
On 11 February 2010, the board of directors has decided to propose to the annual
general meeting, which is to be held on 7 April 2010, that a similar
authorisation for the repurchase and/or acceptance as pledge of the company´s
own shares should be granted to the board of directors until the annual general
meeting of spring 2011, but in any case not past 7 October 2011.
The authorisation shall cancel the authorisation granted at the extraordinary
general meeting of 6 November 2008 regarding the repurchase of the company´s own
shares.
THE BOARD OF DIRECTORS´ AUTHORISATION TO DECIDE ON TRANSFERRING RIGHTS TO THE
COMPANY´S OWN SHARES
The shareholders participating in the extraordinary general meeting held on 6
November 2008 accepted the board of directors' proposal regarding the board's
authorisation to transfer rights to the company's own shares as follows:
The aggregate number of rights transferred on the basis of the authorisation
cannot exceed 1,688,750 shares, which represents 10 percent of all the shares of
the company.
The board of directors has the authority to decide on all the terms and
conditions of the share issues. The authorisation is limited to transferring
rights to the company's own shares as held by the company. The share issue can
be carried out as a private placement. The board of directors can also cancel
any shares it has repurchased. The authorisation will remain in force until
further notice, although in any case not past 30 June 2013.
AUTHORISATION OF THE BOARD OF DIRECTORS TO INCREASE SHARE CAPITAL
On 11 February 2010, the board of directors decided to propose at the annual
general meeting to be held on 7 April 2010 that the board should be granted the
authority to decide on new issues and share entitlements according to the first
paragraph of section 10 of the Finnish Companies Act as follows:
The aggregate number of shares issued on the basis of the authorisation cannot
exceed 3,377,500 shares, which represents approximately 20 percent of all the
shares of the company.
The board of directors has the authority to decide on all the terms and
conditions concerning the issue of shares and other share entitlements. The
authorisation relates to the issuance of new shares. Issuance of shares and
other share entitlements can be carried out as a directed issue.
The authorisation is effective until the following annual general meeting of
shareholders and shall not cancel the authorisation granted at the extraordinary
general meeting of 6 November 2008 regarding the transfer of the company´s own
shares.
The board of directors was granted similar authorisations at the annual general
meetings held on 3 April 2008 and 2 April 2009.
On 25 January 2010, the board of directors has directed, in accordance with the
authorisation granted on 2 April 2009, a share issue of 400,000 new shares to
the company owned by the President and Deputy to the President.
CONVERTIBLE BONDS AND OPTION PROGRAMMES
Okmetic has no convertible bonds or option programmes at the moment.
MANAGEMENT AND AUDITOR
In 2009, Okmetic´s board of directors was made up of Henri Österlund as the
chairman, Karri Kaitue as the deputy chairman, 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, Sales, Mikko Montonen
handled the duties of President 27 October 2009 - 24 January 2010. Antti
Rasilo, M. Sc (Tech.) acted as the President until 27 October 2009.
In addition to the president, the group´s executive management group comprises
Tapio Jämsä, Senior Vice President, Sourcing; Jaakko Montonen, Senior Vice
President, Production; Mikko Montonen, Executive Vice President, Sales and
Deputy to the President; Esko Sipilä, Senior Vice President, Finance; Markku
Tilli, Senior Vice President, Research; Markus Virtanen, Senior Vice President,
Human Resources; and Anna-Riikka Vuorikari-Antikainen, Senior Vice President,
Product Development.
The company´s auditors are PricewaterhouseCoopers Oy, Authorised Public
Accountants, with Markku Marjomaa, Authorised Public Accountant, acting as the
principal auditor.
THE BOARD OF DIRECTORS´ PROPOSAL REGARDING DIVIDEND DISTRIBUTION
According to the financial statements dated 31 December 2009, the parent
company´s distributable earnings amount to 15,971,251.05 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 pay a dividend of 0.05 euro per share for 2009, which, based on
the 16,887,500 shares registered on 11 February 2010 and 400,000 shares
registered in the directed share issue on 25 January 2010, amount to 864,375.00
euro.
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 31 DECEMBER 2009
ACCOUNTING POLICIES
This financial statement release has been prepared in accordance with IAS 34,
Interim Financial Reporting.
In preparing this financial statement release, Okmetic has followed the same
accounting policies as in the financial statements for 2008 except that the
company has adopted the following new or revised standards as of 1 January 2009:
- IAS 1 (Revised), Presentation of Financial Statements. The revised standard
affects the way the income statement and the statement of changes in equity are
presented.
- IFRS 8, Operating Segments. The standard does not affect the information
presented for segments, because the segment data provided by the group have
always been based on the group's internal reporting structure.
- IFRS 7 (Amendment), Enhancing Disclosures on Financial Instruments. The
amendment requires enhanced disclosures about fair value measurement and
liquidity risk.
- IAS 1 (Amendment), Current Assets and Current Liabilities. As a result of the
amendment the group reclassified derivatives in held for trading category as
non-current in case they mature after 12 months and the group does not hold them
primarily for trading purposes.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1,000 euro 1.10.- 1.10.- 1.1.- 1.1.-
31.12.09 31.12.08 31.12.09 31.12.08
Net sales 13,812 15,751 54,361 67,867
Cost of sales -12,602 -11,545 -47,883 -50,687
Gross profit 1,210 4,206 6,478 17,180
Other income and
expenses -1,407 -3,097 -6,208 -8,704
Operating profit/loss -197 1,108 270 8,476
Financial income and
expenses 1 -2,432 -860 -2,900
Profit/loss before tax -196 -1,323 -590 5,576
Income tax -148 206 77 248
Profit/loss for the
period -344 -1,117 -513 5,825
Other comprehensive income:
Translation
differences 73 196 -220 560
Available-for-sale
financial assets - 1,013 - 114
Other comprehensive
income for the period,
net of tax 73 1,210 -220 674
Total comprehensive
income for the period -271 93 -733 6,499
Profit/loss for theperiod attributable to:
Equity holders of the
parent company -344 -1,117 -513 5,825
Total comprehensive income attributable
to:
Equity holders of the
parent company -271 93 -733 6,499
Basic and diluted
earnings per share,
euro -0.02 -0.07 -0.03 0.34
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro Dec 31, Dec 31,
2009 2008
Assets
Non-current assets
Property, plant and equipment 33,174 38,848
Other receivables 3,398 4,619
Total non-current assets 36,572 43,468
Current assets
Inventories 7,164 10,753
Receivables 10,950 9,289
Cash and cash equivalents 7,307 17,975
Total current assets 25,422 38,016
Total assets 61,994 81,484
Equity and liabilities
Equity
Equity attributable to equity holders of the parent company
Share capital 11,821 11,821
Other equity 36,921 38,568
Total equity 48,742 50,389
Liabilities
Non-current liabilities 3,143 14,027
Current liabilities 10,109 17,068
Total liabilities 13,252 31,095
Total equity and liabilities 61,994 81,484
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro Jan 1- Jan 1-
Dec 31, 2009 Dec 31, 2008
Cash flows from operating activities:
Profit/loss before tax -590 5,576
Adjustments 7,183 11,272
Change in working capital 289 -2,935
Interest received 245 424
Interest paid and other financial
items -812 -1,135
Tax paid -1 -26
Net cash from operating activities 6,315 13,177
Cash flows from investing activities:
Proceeds from investing activities 641 469
Capital expenditure -1,694 -2,646
Net cash used in investing
activities -1,053 -2,177
Cash flows from financing activities:
Repayments of long-term borrowings -14,823 -4,748
Payments of finance lease
liabilities -117 -198
Dividends paid -844 -1,689
Net cash used in financing
activities -15,784 -6,634
Increase(+) / decrease(-) in cash
and cash equivalents -10,523 4,365
Exchange rate changes -145 301
Cash and cash equivalents at the
beginning of the period 17,975 13,308
Cash and cash equivalents at the
end of the period 7,307 17,975
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to equity holders of parent company
1,000 euro Share Share Trans-lation Fair Retained Total
capi-tal pre-mium diffe-rences value earnings equity
re-serve
Balance at
31 Dec 2008 11,821 20,115 635 - 17,818 50,389
Total
Comprehensive
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
Balance at
31 Dec 2007 11,821 20,185 75 -114 13,682 45,649
Total
Comprehensive
e income for
the period
560 114 5,825 6,499
Dividend
distribution -1,689 -1,689
Equity
component of
convertible
loan notes -70 -70
Balance at
31 Dec 2008 11,821 20,115 635 - 17,818 50,389
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
1,000 euro Jan 1- Jan 1-
Dec 31, 2009 Dec 31, 2008
Carrying amount at the beginning of
the period 38,848 43,355
Additions 1,448 2,773
Disposals - -537
Depreciation -6,936 -7,041
Exchange differences -187 298
Carrying amount at the end of the period 33,174 38,848
CHANGES IN FINANCIAL LIABILITIES
1,000 euro Jan 1- Jan 1-
Dec 31, 2009 Dec 31, 2008
Carrying amount at the beginning of
the period 17,389 22,259
Proceeds of loans from financial
institutions - 999
Repayments of loans from financial
institutions -13,806 -4,744
Repayments of subordinated loans -928 -928
Changes in finance lease
liabilities -117 -198
Carrying amount at the end of the 1
period 2,538 7,389
DIVIDENDS PAID
In April, the company distributed a dividend of 0.8 million euro of the profit
accrued in 2008, representing a 0.05 euro dividend per share.
COMMITMENTS AND CONTINGENCIES
1,000 euro Dec 31, 2009 Dec 31, 2008
Loans secured with collaterals 2,500 13,333
Collaterals 8,073 24,964
Off-balance sheet lease commitments 83 165
Capital commitments 111 574
Nominal values of derivative contracts
Currency forward agreements 1,385 -
Electricity derivatives 2,520 2,961
Interest rate swaps 6,429 -
Fair values of derivative contracts
Currency forward agreements -4 -
Electricity derivatives -258 -540
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
Top management compensation during the period under review amounted to
1,497,000 euro (1,506,000 euro).
KEY FIGURES SHOWING FINANCIAL PERFORMANCE
1,000 euro Jan 1- Jan 1-
Dec 31, 2009 Dec 31, 2008
Net sales 54,361 67,867
Change in net sales compared to
the previous year´s period, % -19.9 5.0
Export and foreign operations
share of net sales, % 95.4 95.6
Operating profit before
depreciation (EBITDA) 7,206 15,517
% of net sales 13.3 22.9
Operating profit 270 8,476
% of net sales 0.5 12.5
Profit/loss before tax -590 5,576
% of net sales -1.1 8.2
Return on equity, % -1.0 12.1
Return on investment, % 0.0 9.9
Non-interest-bearing liabilities 10,715 13,707
Net interest-bearing liabilities -4,770 -586
Net gearing ratio, % -9.8 -1.2
Equity ratio, % 78.9 62.8
Capital expenditure 1,448 2,773
% of net sales 2.7 4.1
Depreciation 6,936 7,041
Research and development
expenditure 1) 2,134 2,261
% of net sales 3.9 3.3
Average number of personnel during
the period 337 364
Personnel at the end of the period 327 363
1) Research and development expenditure has been presented in gross figures and
only long-term projects based on research program have been taken into account.
KEY FIGURES PER SHARE
Euro Dec 31 2009 Dec 31 2008
Earnings per share basic and
diluted -0.03 0.34
Equity per share 2.89 2.98
Dividend per share 0.05 0.05
Dividends/earnings, % -164.7 14.5
Effective dividend yield, % 1.6 2.1
Price/earnings (P/E) -105.4 7.0
Share price performance (Jan 1-)
Average trading price 2.54 2.63
Lowest trading price 1.81 2.15
Highest trading price 3.20 3.14
Trading price at the end of the
period 3.20 2.40
Market capitalisation at the end of the period, 1,000
euro 54,040 40,530
Trading volume (Jan 1-)
Trading volume, transactions 4,316,320 8,355,374
In relation to weighted average
number of shares, % 25.6 49.5
Trading volume, euro 10,957,275 22,002,739
The weighted average number of
shares during the period under
review adjusted by the share issue 16,887,500 16,887,500
The number of shares at the end of
the period adjusted by the share
issue 16,887,500 16,887,500
QUARTERLY KEY FIGURES
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
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
10-12/08 7-9/08 4-6/08 1-3/08
Net sales 15,751 18,090 16,992 17,034
Compared to previous
quarter % -12.9 6.5 -0.2 7.9
Operating profit 1,108 2,089 2,737 2,542
% of net sales 7.0 11.5 16.1 14.9
Profit/loss before tax -1,323 2,683 2,582 1,634
% of net sales -8.4 14.8 15.2 9.6
Net cash flow generated
from:
Operating activities 2,878 4,522 3,495 2,281
Investing activities -716 -289 -841 -331
Financing activities -1,912 -48 -4,616 -58
Increase/decrease in cash
and cash equivalents 250 4,185 -1,962 1,892
Personnel at the end of the
period 363 361 370 359
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 the equity holders of the parent
company/
-----------------------------------------
Adjusted weighted average number of
shares in issue during the period
Equity per share = Equity attributable to the equity
holders of the parent company/
-----------------------------------------
Adjusted number of shares at the end of
the period
Dividend per share = Dividend for the period/
-----------------------------------------
Adjusted number of shares at the end of
the period
Effective dividend yield, % = Dividend per share x 100/ -----------------------------------------
Trading price at the end of the period
Price/earnings ratio (P/E) = Last adjusted trading price at the end
of the period/
-----------------------------------------
Earnings per share
Average trading price = Total traded amount in euro/
-----------------------------------------
Adjusted number of shares traded during
the period
Market capitalisation at the end of = Number of shares at the end of the
the period period x trading price at the end of
the period
Trading volume = Number of shares traded during the
period/
-----------------------------------------
Weighted average number of shares
during the period
All figures of the financial tables are rounded, and consequently the sum of
individual figures can deviate from the presented sum figure.
In the written report, the figures in parenthesis refer to the corresponding
period in the previous year.
The future estimates and forecasts in this financial statement release are based
on company management´s current knowledge. Actual events and results may differ
from the estimates presented here.
OKMETIC OYJ
Board of directors
For further information, please contact:
President Kai Seikku, Okmetic Oyj,
tel. +358 9 5028 0232, email: kai.seikku@okmetic.com
Senior Vice President, Finance Esko Sipilä, Okmetic Oyj,
tel. +358 9 5028 0286, email: esko.sipila@okmetic.com
Distribution:
NASDAQ OMX Helsinki
Principal media
www.okmetic.com <http://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.
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