2015-07-23 07:00:00 CEST
2015-07-23 07:00:49 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Okmetic Oyj - Interim report (Q1 and Q3)
Okmetic Oyj interim report 1 January - 30 June 2015: Strong development continued in the second quarter
OKMETIC OYJ INTERIM REPORT 23 JULY 2015 AT 8.00 A.M.
OKMETIC OYJ INTERIM REPORT 1 JANUARY - 30 JUNE 2015: STRONG DEVELOPMENT
CONTINUED IN THE SECOND QUARTER
APRIL-JUNE IN BRIEF
* Net sales amounted to 22.1 (18.7) million euro, up 18.0%.
* Silicon wafer net sales growth with comparable USD exchange rate was 5.8%.
* Sensor wafer deliveries amounted to 16.2 (11.7) million euro, up 38.0%.
* Semiconductor wafer deliveries amounted to 7.4 (6.8) million euro, up 9.0%.
* Operating profit was 2.9 (1.1) million euro, corresponding to 13.2% (6.1%)
of net sales.
* Profit for the period was 2.2 (0.9) million euro.
* Basic earnings per share was 0.13 (0.05) euro.
* Net cash flow from operations amounted to 3.7 (1.9) million euro.
JANUARY-JUNE IN BRIEF
* Net sales amounted to 43.7 (36.1) million euro, up 21.0%.
* Silicon wafer net sales growth with comparable USD exchange rate was 4.7%.
* Sensor wafer deliveries amounted to 30.0 (23.0) million euro, up 30.6%.
* Semiconductor wafer deliveries amounted to 14.3 (13.3) million euro, up
8.0%.
* Operating profit was 5.8 (2.1) million euro, corresponding to 13.4% (5.7%)
of net sales.
* Profit for the period was 4.4 (1.5) million euro.
* Basic earnings per share was 0.26 (0.09) euro.
* Net cash flow from operations amounted to 4.6 (2.6) million euro.
Unless otherwise stated, figures in parenthesis refer to the corresponding
period in the previous year.
SHORT-TERM OUTLOOK
The demand for semiconductors is expected to continue on growth track also in
2015, although according to most market forecasts the growth has slowed down
from that seen in 2014. Growth estimates for semiconductors have lately been
revised downwards due to slowdown of demand in the second quarter. The silicon
wafer market is anticipated to remain slightly below the previous year's level
in terms of value, with a further decline in average prices likely to be
compensated by volume growth.
Demand for Okmetic's sensor wafers and other special wafers included in the
sensor wafer category is expected to maintain sustained growth in 2015. The
demand and price level for these wafers are more stable than those for
semiconductor wafers, which are more sensitive to economic fluctuations and also
come under greater price pressure. The demand is anticipated to have been
strongest in the beginning of the year and, according to the normal seasonal
fluctuation, probably also in the third quarter.
FINANCIAL GUIDANCE FOR 2015
The company retains its existing guidance, which was revised on 14 April 2015:
Net sales and operating profit for 2015 are estimated to clearly exceed the
level of 2014.
PRESIDENT KAI SEIKKU:"The high demand in early 2015 carried over into the second quarter. Net sales
were up by 18.0 percent year-on-year, and the sensor wafer business in
particular saw strong growth. Following the record-high first quarter, the value
of sensor wafer deliveries (16.2 million euro) reached another record in April-
June, again on the back of the strengthened US dollar. The value of sensor wafer
deliveries increased by as much as 38 percent against the comparison period.
The value of silicon wafer deliveries (23.1 million euro) reached an all-time
high for the company in the second quarter as Other business, reported under
semiconductor wafer deliveries, only amounted to 0.4 million euro. North America
continued to show the strongest growth, driven by high demand and favourableexchange rate development. The market area's share of net sales increased to
upwards of 45 percent in the first half of the year.
To meet the increasing demand, Okmetic needs to invest in its production
capacity and capabilities, and in new products. In May, Okmetic's board of
directors approved investments of 8.4 million euro at the Vantaa production
plant. These investments will be targeted at the manufacture of 200 mm silicon
wafers - a high-growth area for Okmetic - as well as the production and
capability of more advanced SOI wafers, and they are expected to translate into
production during 2016. During the first half of the year, the company also
increased the number of blue-collar employees in order to remove bottlenecks.
Okmetic's operating profit before depreciation (EBITDA, 9.1 million euro, up
71%) and operating profit (5.8 million euro, up 183%) saw strong growth in the
first half when compared to the same period last year. The operating profit
(13.4% of net sales) was clearly above the company's long-term target of 10
percent. Costs remained at the anticipated level even with the slight increase
in maintenance costs for production due to the high volumes.
Okmetic has for many years successfully fought the trend of declining prices in
the silicon wafer market. To be able to divert from mainstream prices requires,
above all, a continuous focus on the development and commercialisation of
advanced specialty products. Sustained efforts in these areas are increasingly
shifting the sales mix to higher value-added products. As an evidence of the
success of this strategy, the average prices of silicon wafers delivered by
Okmetic in the second quarter were up by four percent from the corresponding
period last year. Sensor wafers including special wafers are key to the
profitability of the company, and their share of net sales is expected to grow
further."
KEY FIGURES
1,000 euro 1 Apr- 1 Apr- 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Jun, 30 Jun, 31 Dec,
2015 2014 2015 2014 2014
Net sales 22,068 18,700 43,680 36,105 74,104
Operating profit before depreciation
(EBITDA) 4,556 2,779 9,101 5,325 12,985
Operating profit 2,914 1,137 5,837 2,065 6,401
% of net sales 13.2 6.1 13.4 5.7 8.6
Profit for the period 2,215 890 4,380 1,531 4,832
Basic earnings per share, euro
0.13 0.05 0.26 0.09 0.29
Net cash flow from operating
activities 3,660 1,932 4,556 2,565 12,478
Net interest-bearing liabilities
3,826 8,160 3,826 8,160 -1,110
Equity ratio, % 67.9 66.6 67.9 66.6 70.5
Average number of personnel during the
period
412 382 392 368 370
MARKETS
Customer industries sensor and semiconductor industries
Sensor industry
The sales value of sensor industry kept growing during the first half of 2015.
Above all, the increasing use of mobile applications has accelerated sensor
sales growth. In 2015, the sales value of sensor industry is estimated to grow
by 6-11 percent, and annual growth of 7-17 percent is forecasted for the next
few years. In terms of volume, sensor shipments are likely to clearly rise to a
new record in 2015. (IHS, Yole, IC Insights, Semico)
Certain silicon-based microelectromechanical (MEMS) products within the sensor
segment have higher sales growth than the others. The increasing amount of
sensors in mobile devices has significantly accelerated the demand for e.g.
pressure sensors and microphones. Silicon-on-insulator (SOI) technology is
increasingly used in the manufacture of these products, among others. Okmetic is
a pioneering supplier of SOI wafers for the sensor industry.
Semiconductor industry
In January-April, the semiconductor industry's sales in US dollars exceeded the
comparison period of last year by seven percent, but fell short of the level in
the second half of 2014. In May, semiconductor industry sales grew by five
percent from May 2014. (SIA)
The semiconductor market is expected to grow 2-5 percent during 2015, and growth
is expected to continue in 2016 (WSTS, Gartner, IHS). Due to seasonal
fluctuation, fourth quarter is expected to be weaker than the rest of the year.
Silicon wafer market
According to the estimate published 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 grew by 3.4
percent in the first quarter compared the the previous quarter and reached a
quarterly record-high. SEMI has not yet published its figures for the second
quarter. In 2015-2017, the surface area is estimated to grow by 3-5 percent
annually (Infiniti Research, SEMI). The total value of the silicon wafer market
in 2015 is expected to remain somewhat lower than in 2014.
The key customer areas for Okmetic in the silicon wafer market
In line with its strategy, Okmetic seeks niches in the silicon wafer market,
where growth exceeds market average and in which the company has special
expertise. Okmetic supplies primarily 150 mm and 200 mm wafers. The sensor/MEMS
industry is a key growth area for Okmetic. The use of sensors and their
requirement level are expected to keep growing owing to proliferation of sensor
applications in the automotive industry, industrial process control and in
portable devices like smart phones, cameras, game consoles, and wearable
electronics. In the future, a central growth driver for the sensor industry will
be the Internet of Things, which will utilise sensor-produced data in
communication between devices.
In the semiconductor market, Okmetic's growth areas include wafers for the
production of discrete and power semiconductors. In these wafer markets, areas
for growth include, among others, components used in the production of renewable
energy, increasing automotive electronics, electric cars, portable consumer
products, as well as different solutions related to power supply and efficiency
improvement. In these areas Okmetic has launched new products.
SALES
In January-June, Okmetic's net sales amounted to 43.7 (36.1) million euro. Net
sales grew by 21.0 (8.0) percent from the corresponding period last year,
especially due to strong demand for sensor wafers and strengthening of US
dollar. In the second quarter, net sales increased by 18.0 percent from the same
period in 2014. Okmetic's market share remained stable in the product groups
important to the company.
Silicon wafer net sales growth with comparable USD exchange rate was 4.7 percent
in January-June and 5.8 percent in April-June compared to the corresponding
period last year.
The US dollar has strengthened significantly in relation to euro, which is why
the company reports also silicon wafer net sales growth with comparable exchange
rate in this interim report. In Okmetic's view, this represents better the
operative development of the silicon wafer business. Unlike in the interim
report for the first quarter, net sales growth with comparable USD exchange rate
has been calculated without exchange rate differences in trade receivables, and
containing only the company's core business, sales of silicon wafers. In April-
June, the share of Other business was minor, only 0.4 million euro.
As of 1 January 2015, Okmetic reports the value of deliveries in euro amounts
instead of percentage shares. In addition, Other business is reported under
semiconductor wafer deliveries. These reporting changes were explained more in
detail in the interim report published on 29 April 2015.
Value of deliveries per customer area
1,000 euro 1 Apr- 1 Apr- 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Jun, 30 Jun, 31 Dec, 2015 2014 2015 2014 2014
Sensor wafers 1) 16,167 11,712 30,042 23,006 46,119
Semiconductor wafers 7,366 6,759 14,320 13,265 27,001
Total 23,533 18,471 44,362 36,271 73,120
1) The category sensor wafers includes all high value-added special wafers.
Demand for sensor wafers was strong in the second quarter. In January-June, the
value of sensor wafer deliveries grew by 30.6 percent from the comparison period
last year. The continued strong growth in production and delivery volumes of the
strategically important SOI wafers was particularly positive.
The value of semiconductor wafer deliveries grew by 8.0 percent in January-June
from the comparison period last year.
Value of deliveries per market area
1,000 euro 1 Apr- 1 Apr- 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Jun, 30 Jun, 31 Dec,
2015 2014 2015 2014 2014
North America 10,730 7,142 20,191 13,765 27,799
Europe 7,467 7,476 14,803 14,614 29,554
Asia 5,336 3,853 9,368 7,892 15,767
Total 23,533 18,471 44,362 36,271 73,120
Both in January-June and in April-June, the value of deliveries showed strong
growth in North America, especially due to continued very strong demand for
sensor wafers and favourable development of the US dollar. In Europe, the demand
for sensor wafers grew, but the value of semiconductor wafer deliveries
decreased. In Asia, which is of strategic importance, both sensor and
semiconductor wafers saw growth in demand.
PROFITABILITY
April-June
In April-June, Okmetic's operating profit amounted to 2.9 (1.1) million euro,
corresponding to 13.2 (6.1) percent of net sales. Profit for the period was 2.2
(0.9) million euro. Basic earnings per share was 0.13 (0.05) euro. Diluted
earnings per share was 0.13 (0.05) euro. The operating profit includes an
impairment of 0.2 million euro on trade receivables from previous financial
year.
January-June
Okmetic's operating profit for the first half amounted to 5.8 (2.1) million
euro, corresponding to 13.4 (5.7) percent of net sales. Improvement in operating
profit was due to strong sales growth in sensor wafers and SOI wafers in
particular, as well as strengthening of US dollar compared to euro.
Profit for the period was 4.4 (1.5) million euro. Basic earnings per share was
0.26 (0.09) euro. Diluted earnings per share was 0.26 (0.08) euro.
FINANCING
The company's financial position is solid. In January-June, net cash flow from
operations amounted to 4.6 (2.6) million euro.
The company's interest-bearing liabilities amounted to 13.1 (17.5) million euro
on 30 June 2015. At the end of the period, cash and cash equivalents amounted to
9.2 (9.3) million euro. The company's net interest-bearing liabilities amounted
to 3.8 (8.2) million euro. The company has ensured liquidity with committed
credit facilities of 6.0 million euro. On 30 June 2015, the committed credit
facilities were unused. (On 30 June 2014, 2.0 million euro of the committed
credit facilities was in use.)
Return on equity was 14.0 (5.2) percent. Return on investment was 15.4 (5.7)
percent. The company's equity ratio was 67.9 (66.6) percent. Equity per share
amounted to 3.62 (3.52) euro.
CAPITAL EXPENDITURE
In January-June, capital expenditure amounted to 3.1 (2.0) million euro. The
investments mainly focused on increasing capacity and capability for SOI and
200 mm wafers.
In May, the board of directors of Okmetic Oyj approved investments of 8.4
million euro in total at the Vantaa plant. The investments are targeted at the
manufacture of 200 mm silicon wafers as well as production and capability of
more advanced SOI wafers. The investments are scheduled for productional use
during 2016. Okmetic published a stock exchange release concerning the
investment decision on 28 May 2015.
PRODUCT DEVELOPMENT
In January-June, the company expensed 1.4 (1.2) million euro in product
development projects, corresponding to 3.2 (3.5) percent of net sales. Product
development costs have not been capitalised.
In the first half of 2015, focus areas in Okmetic's product development projects
included process development for sophisticated C-SOI wafers, development of SOI
products enabling new application areas and deployment of processes to improve
productivity. The product development organisation was strengthened through
recruitment of additional people for these projects.
PERSONNEL
Okmetic employed on average 392 (368) people in January-June. At the end of the
period, Okmetic employed 426 (393) people, of which 377 worked in Finland, 43 in
the US, five in Japan, and one in Hong Kong.
BUSINESS RISKS
There have been no significant changes in the company's near future risks and
uncertainties. However, changes in macro economy may indirectly have an
influence also on Okmetic's business.
Okmetic's business is confronted by risks, which may arise from the company's
operations or changes in its operating environment. Risks that, if materialised,
can have an adverse effect on the company's operations and valuation are
described below.
Okmetic's silicon wafer sales are targeted at the sensor and semiconductor
producers in the electronics industry. The demand for semiconductor wafers is
sensitive to economic fluctuations, and changes in the market situation can be
sudden and dramatic. The demand for sensor wafers is more stable. The
proliferation of sensors in consumer electronics applications may, however,
increase the susceptibility of this market too to economic fluctuations.
Okmetic has existing polysilicon purchasing obligations partly until 2016. Due
to the purchasing obligations, the company's net working capital will remain at
a high level relative to the size of the operation far into 2016.
Okmetic's share of the global silicon wafer market is around one percent, and
market prices have a notable effect on the price development of the company's
products. The company has considerable pricing power only with its own special
products. The pricing of other wafers is largely based on global market price.
Okmetic operates globally, and therefore the company's business is affected by
risks due to exchange rate fluctuations, consisting of cash flows from purchases
and sales. A significant part of sales are conducted in US dollars. Despite
hedging of the forecasted open currency position, 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 30 June 2015, 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
30 June 2015
Shares, Share,
pcs %
Ilmarinen Mutual Pension Insurance
Company 1,004,985 5.8
Ingman Finance Oy Ab 900,000 5.2
Mandatum Life Insurance Company
Limited 800,000 4.6
The State Pension Fund 600,000 3.5
Nordea Nordic Small Cap Fund 516,677 3.0
Varma Mutual Pension Insurance
Company 477,175 2.8
Okmetic Oyj 406,129 2.3
Etra-Invest Oy Ab 400,000 2.3
Investment fund Taaleritehdas Mikro
Markka 229,456 1.3
Investment fund Taaleritehdas Arvo
Markka Osake 227,397 1.3
Foreign investors and nominee accounts
held by custodian banks 3,202,714 18.5
Other 8,522,967 49.3
Total 17,287,500 100.0
SHARE PRICE PERFORMANCE AND TRADING
A total of 3.4 (2.1) million shares were traded between 1 January and 30 June
2015, representing 19.9 (12.4) percent of the weighted average of share total of
17.3 (17.3) million during the period. The lowest quotation during the period
was 4.80 (4.38 euro), the highest 7.70 (5.25) euro, and the average 6.19 (4.68)
euro. The closing quotation of the period on 30 June 2015 was 7.05 (4.60) euro.
At the end of the period, the market capitalisation amounted to 121.9 (79.5)
million euro.
DIVIDENDS PAID
In April 2015, the company paid a dividend of 0.15 euro per share (2.5 million
euro in total) for the year 2014. The dividend was paid on 23 April 2015.
Including the dividend paid in January 2015, 0.30 euro per share, the company
has paid a total of 0.45 euro dividend per share in 2015 (7.6 million in total).
In 2014, the company paid no dividend.
OWN SHARES AND DIRECTED SHARE ISSUES
According to the decision of the annual general meeting, Okmetic Oyj transferred
a total of 10,634 own shares to the board members as payment of the annual
remuneration on 20 May 2015.
At the end of the reporting period, Okmetic held 406,129 (416,763) own shares
corresponding to approximately 2.3 (2.4) percent of all Okmetic shares and
votes.
OTHER EVENTS IN THE INTERIM PERIOD
An extraordinary general meeting took place on 12 January 2015. The
extraordinary general meeting decided, in accordance with the proposal of the
board of directors, to distribute a dividend of 0.30 euro per share (5.1 million
euro in total). The payment of the dividend took place on 21 January 2015.
On 14 April 2015, Okmetic announced a revision of its guidance on net sales and
operating profit for 2015. According to the current guidance, net sales and
operating profit for 2015 are estimated to clearly exceed the level of 2014.
Annual general meeting on 14 April 2015
Okmetic Oyj's annual general meeting on 14 April 2015 adopted the annual
accounts and the consolidated annual accounts for 2014 and discharged the
company's management from liability. The annual general meeting decided to
distribute a dividend of 0.15 euro per share for the financial year 2014 (2.5
million euro in total). The dividend was paid on 23 April 2015.
The general meeting decided, in accordance with the board's proposal, to
authorise the board of directors to decide at its discretion on payment of
dividend should the company's financial situation permit this. The additional
dividend paid on the basis of the authorisation, summing up all possible
separate decisions on dividend payment, may amount up to a maximum of 0.60 euro
per share and 10,200,000 euro in total. The annual general meeting also ratified
the board's proposal to authorise the board to decide on repurchase and/or
acceptance as pledge of the company's own shares as well as on issuance of
shares, transfer of the company's own shares, and issuance of special rights
entitling to shares.
The annual general meeting confirmed that the company's board of directors
consists of five members. Mr. Jan Lång, Mr. Hannu Martola, Mr. Mikko Puolakka
and Mr. Henri Österlund were re-elected as members of the board of directors and
Ms. Riitta Mynttinen was elected as a new board member until the end of the next
annual general meeting. The board of directors elected Jan Lång as chairman and
Henri Österlund as vice chairman in its organising meeting held immediately
after the annual general meeting.
Authorised Public Accountant PricewaterhouseCoopers Oy was re-elected as
auditor, with APA Mikko Nieminen as principal auditor.
A stock exchange release on the decisions of the annual general meeting and
authorisations given to the board of directors was published on 14 April 2015.
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 30 JUNE 2015 (unaudited)
ACCOUNTING POLICIES
These interim financial statements have been prepared in accordance with IAS
34, Interim Financial Reporting.
In preparing these interim financial statements, Okmetic has followed the same
accounting policies as in the financial statements for 2014 except for the
effect of changes required by the adoption of certain new or revised standards
and interpretations as of 1 January 2015, which have been described in financial
statements 2014. The adoption of the new and revised standards and
interpretations has not had an effect on the figures presented from the
reporting period.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1,000 euro 1 Apr- 1 Apr- 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 30 Jun, 30 Jun, 31 Dec,
2015 2014 2015 2014 2014
Net sales 22,068 18,700 43,680 36,105 74,104
Cost of sales -16,434 -15,084 -32,312 -29,156 -58,909
Gross profit 5,634 3,616 11,368 6,949 15,195
Other income and
expenses -2,720 -2,479 -5,531 -4,884 -8,794
Operating profit 2,914 1,137 5,837 2,065 6,401
Financial income and
expenses -8 -41 -150 -77 -350
Profit before tax 2,906 1,096 5,687 1,988 6,051
Income tax -691 -207 -1,308 -457 -1,219
Profit for the period 2,215 890 4,380 1,531 4,832
Other comprehensive
income:
Items that may be
reclassified to profit or
loss in subsequent
periods
Cash flow hedges -5 21 -7 1 -11
Translation differences -295 13 622 9 891
Other comprehensive
income for the period,
net of tax -300 34 614 11 880
Total comprehensive
income for the period 1,915 924 4,994 1,541 5,712
Profit for the period
attributable to:
Equity holders of the
parent company 2,215 890 4,380 1,531 4,832
Total comprehensive
income attributable to:
Equity holders of the
parent company 1,915 924 4,994 1,541 5,712
Basic earnings per
share, euro 0.13 0.05 0.26 0.09 0.29
Diluted earnings per
share, euro 0.13 0.05 0.26 0.08 0.29
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro 30 Jun, 30 Jun, 31 Dec,
2015 2014 2014
Assets
Non-current assets
Property, plant and equipment 42,797 44,183 42,538
Intangible assets 493 822 657
Other receivables 615 1,031 794
Total non-current assets 43,905 46,036 43,990
Current assets
Inventories 17,867 17,811 17,890
Receivables 19,424 16,679 14,347
Cash and cash equivalents 9,231 9,320 14,436
Total current assets 46,521 43,809 46,672
Total assets 90,426 89,845 90,662
Equity and liabilities
Equity
Equity attributable to equity
holders of the parent company
Share capital 11,821 11,821 11,821
Other equity 49,337 47,566 51,805
Total equity 61,158 59,387 63,627
Liabilities
Non-current liabilities 13,253 14,441 13,561
Current liabilities 16,016 16,017 13,475
Total liabilities 29,269 30,458 27,036
Total equity and liabilities 90,426 89,845 90,662
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 31 Dec,
2015 2014 2014
Cash flows from operating
activities:
Profit before tax 5,687 1,988 6,051
Adjustments 3,528 3,308 6,494
Change in working capital -3,650 -2,687 352
Financial items -551 -111 -486
Tax paid -458 67 67
Net cash from
operating activities 4,556 2,565 12,478
Cash flows from investing
activities:
Purchases of property, plant
and equipment -2,365 -2,901 -4,345
Proceeds from sale of property,
plant and equipment - - 710
Net cash used in
investing activities -2,365 -2,901 -3,635
Cash flows from financing
activities:
Proceeds from long-term
borrowings 1,000 5,000 5,000
Proceeds of short-term
borrowings - 4,000 4,000
Payments of long-term
borrowings -1,000 -1,000 -3,000
Payments of short-term
borrowings - -2,024 -4,024
Payments of finance
lease liabilities -316 -280 -595
Other items - 36 36
Dividends paid -7,592 -578 -578
Share issue - 750 750
Acquisition of Okmetic
Management Oy's share capital - -1,516 -1,539
Net cash used in
financing activities -7,908 4,387 50
Increase (+) / decrease (-) in
cash and cash equivalents -5,717 4,051 8,893
Exchange rate changes 512 54 329
Cash and cash equivalents at
the beginning of the period 14,436 5,214 5,214
Cash and cash equivalents at
the end of the period 9,231 9,320 14,436
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to equity holders of parent
company
Share Share Reserve Other Retained Total
capital premium for invested reserves earnings
unrestricted 1)
1,000 euro equity
Balance at
31 Dec, 2014 11,821 20,045 753 2,636 28,372 63,627
Profit for
the period 4,380 4,380
Other com-
prehensive
income,
net of tax:
Cash flow
hedges -7 -7
Translation
differences 622 622
Total com-
prehensive
income for
the period 614 4,380 4,994
Share-based
payments 129 129
Dividend
distribution -7,592 -7,592
Balance at
30 Jun, 2015 11,821 20,045 753 3,250 25,288 61,158
Balance at
31 Dec, 2013 11,821 20,045 3 1,756 23,647 57,273
Profit for
the period 1,531 1,531
Other com-
prehensive
income,
net of tax:
Cash flow
hedges 1 1
Translation
differences 9 9
Total com-
prehensive
income for
the period 11 1,531 1,541
Share issue 750 750
Share-based
payments 180 180
Acquisition of
non-
controlling
interest -357 -357
Balance at
30 Jun, 2014 11,821 20,045 753 1,766 25,001 59,387
1)"Other reserves" contains hedge reserve and translation differences.
Acquisition of shares of Okmetic Management Oy is treated as acquisition of non-
controlling interest. Okmetic Management Oy was merged in the parent company on
30 November 2014.
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
1,000 euro 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 31 Dec,
2015 2014 2014
Carrying amount at the beginning
of the period 42,538 45,295 45,295
Additions 3,116 1,955 3,627
Disposals - - -520
Depreciation -3,099 -3,098 -6,257
Exchange differences 242 32 393
Carrying amount at the end of
the period 42,797 44,183 42,538
COMMITMENTS AND CONTINGENCIES
1,000 euro 30 Jun, 30 Jun, 31 Dec,
2015 2014 2014
Loans, secured with collaterals 7,000 9,000 7,000
Collaterals 15,110 17,128 15,110
Off-balance sheet
lease commitments 328 344 308
Capital commitments 3,881 1,762 2,689
Nominal values of
derivative contracts
Currency options, call 1,088 436 1,193
Currency options, put - 142 -
Currency forward agreements 4,461 1,416 3,979
Electricity derivatives 717 1,465 1,076
Fair values of
derivative contracts
Currency options, call 38 3 6
Currency options, put - -4 -
Currency forward agreements -10 -12 -85
Electricity derivatives -249 -294 -244
The contract price of the derivatives has been used as the nominal value of the
underlying asset.
HIERARCHY LEVELS OF DERIVATIVE CONTRACTS MEASURED AT FAIR VALUE
1,000 euro 30 Jun, 2015 30 Jun, 2014
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial assets
Derivative financial
instruments - 85 - 60 3 -
Financial liabilities
Derivative financial
instruments 249 57 - 354 16 -
Fair value estimation
The group's financial instruments that are measured at fair value comprise
derivatives used for hedging and held for trading.
Fair values of level 1 instruments are based on quoted prices (unadjusted) in
active markets for identical assets or liabilities.
Fair values of level 2 instruments are based on other data than quoted prices in
active markets, but on the data from which the asset or liability is observable,
either directly (i.e. price) or indirectly (i.e. derived from the prices).
Electricity derivatives are classified as level 1, currency derivatives as level
2.
Fair value determination
The fair values of electricity derivatives are based on quoted market prices.
The fair values of currency forwards and options are determined on the basis of
market and contract prices of the agreements at the reporting date by applying
commonly used valuation techniques.
KEY FIGURES SHOWING FINANCIAL PERFORMANCE
1,000 euro 1 Jan- 1 Jan- 1 Jan-
30 Jun, 30 Jun, 31 Dec,
2015 2014 2014
Net sales 43,680 36,105 74,104
Change in net sales compared to
the previous year's period, % 21.0 8.0 8.2
Export and foreign operations
share of net sales, % 91.1 91.7 90.7
Operating profit before
depreciation (EBITDA) 9,101 5,325 12,985
% of net sales 20.8 14.7 17.5
Operating profit 5,837 2,065 6,401
% of net sales 13.4 5.7 8.6
Profit before tax 5,687 1,988 6,051
% of net sales 13.0 5.5 8.2
Return on equity, % 14.0 5.2 8.0
Return on investment, % 15.4 5.7 8.7
Non-interest-bearing liabilities 16,212 12,978 13,710
Net interest-bearing liabilities 3,826 8,160 -1,110
Net gearing ratio, % 6.3 13.7 -1.7
Equity ratio, % 67.9 66.6 70.5
Capital expenditure 3,116 1,955 3,627
% of net sales 7.1 5.4 4.9
Depreciation 3,264 3,260 6,584
Research and development
expenditure 1,406 1,249 2,472
% of net sales 3.2 3.5 3.3
Average number of personnel
during the period 392 368 370
Personnel at the end of the
period 426 393 367
KEY FIGURES PER SHARE
Euro 30 Jun, 30 Jun, 31 Dec,
2015 2014 2014
Basic earnings
per share 0.26 0.09 0.29
Diluted earnings per share 0.26 0.08 0.29
Equity per share 3.62 3.52 3.77
Dividend per share 1) - - 0.45
Dividends/earnings, % - - 155.2
Effective dividend yield, % - - 9.3
Price/earnings(P/E) - - 16.8
Share performance (1 Jan-)
Average trading price 6.19 4.68 4.68
Lowest trading price 4.80 4.38 4.28
Highest trading price 7.70 5.25 5.25
Trading price at the
end of the period 7.05 4.60 4.83
Market capitalisation at the
end of the period, 1,000 euro 121,877 79,522 83,499
Trading volume (1 Jan-)
Trading volume,
transactions, 1,000 pcs 3,445 2,139 3,778
In relation to weighted
average number of shares, % 19.9 12.4 21.9
Trading volume, 1,000 euro 21,319 10,050 17,704
The weighted average number
of shares during the period
under review adjusted by the
share issue, 1,000 pcs 17,288 17,288 17,288
The number of shares at the
end of the period adjusted by
the share issue, 1,000 pcs 17,288 17,288 17,288
When calculating equity per share, Okmetic's own shares and the Okmetic shares
owned by Okmetic Management Oy are deducted from the total number of shares.
Okmetic Management Oy was merged in the parent company on 30 November 2014.
1) The figure for 2014 contains the dividend distributed in January 2015, 0.30
euro per share and the dividend distributed in April 2015, 0.15 euro per share.
QUARTERLY KEY FIGURES
1,000 euro 10-12/ 7-9/ 4-6/ 1-3/
2015 2015 2015 2015
Net sales 22,068 21,612
Compared to previous quarter % 2.1 15.7
Compared to corresponding
period last year, % 18.0 24.2
Operating profit 2,914 2,923
% of net sales 13.2 13.5
Profit before tax 2,906 2,781
% of net sales 13.2 12.9
Net cash flow generated from:
Operating activities 3,660 896
Investing activities -625 -1,740
Financing activities -2,687 -5,221
Increase/decrease in cash
and cash equivalents 348 -6,064
Personnel at the end of the period 426 375
1,000 euro 10-12/ 7-9/ 4-6/ 1-3/
2014 2014 2014 2014
Net sales 18,679 19,320 18,700 17,405
Compared to previous quarter % -3.3 3.3 7.4 3.4
Compared to corresponding
period last year, % 10.9 5.9 9.8 6.1
Operating profit 1,579 2,757 1,137 928
% of net sales 8.5 14.3 6.1 5.3
Profit before tax 1,257 2,806 1,096 892
% of net sales 6.7 14.5 5.9 5.1
Net cash flow generated from:
Operating activities 6,270 3,644 1,932 632
Investing activities -996 261 -1,263 -1,637
Financing activities -1,180 -3,157 4,859 -472
Increase/decrease in cash
and cash equivalents 4,093 748 5,528 -1,477
Personnel at the end of the period 367 363 393 354
DEFINITIONS OF KEY FINANCIAL FIGURES
Value of deliveries = Net sales excluding currency exchange
rate differences in accounts receivable
and including inventory shipped to
customers on consignment during the
period, for which no net sales are
recognised at the time of shipping.
Operating profit before = Operating profit + depreciation
depreciation (EBITDA)
Return on equity (ROE), % = Profit/loss for the period x 100/
-----------------------------------------
Equity(average for the period)
Return on investment (ROI), % = (Profit/loss before tax + interest and
other financial expenses) x 100/
-----------------------------------------
Balance sheet total - non-interest
bearing liabilities(average for the
period)
Equity ratio, % = Equity x 100/
-----------------------------------------
Balance sheet total - advances received
Net interest-bearing liabilities = Interest-bearing liabilities - cash and
cash equivalents
Net gearing ratio, % = (Interest-bearing liabilities - cash and
cash equivalents) x 100/
-----------------------------------------
Equity
Earnings per share = Profit/loss for the period attributable to equity holders of the parent
company/
-----------------------------------------
Adjusted weighted average number of
shares in issue during the period
Equity per share = Equity attributable to equity holders of
the parent company/
-----------------------------------------
Adjusted number of shares at the end of
the period
Dividend per share = Dividend for the period/
-----------------------------------------
Adjusted number of shares at the end of
the period
Effective dividend yield, % = Dividend per share x 100/
-----------------------------------------
Trading price at the end of the period
Price/earnings ratio (P/E) = Last adjusted trading price at the end
of the period/
-----------------------------------------
Earnings per share
Average trading price = Total traded amount in euro/
-----------------------------------------
Adjusted number of shares traded during
the period
Market capitalisation at the end of = Number of shares at the end of the
the period period x trading price at the end of the
period
Trading volume = Number of shares traded during the period/
-----------------------------------------
Weighted average number of shares during
the period
All figures of the financial tables are rounded, and consequently the sum of
individual figures can deviate from the presented sum figure.
The future estimates and forecasts in this financial statements release are
based on the company management's current knowledge. Actual events and results
may differ from the estimates presented here.
INTERIM REPORT 1 JANUARY- 30 SEPTEMBER 2015
Okmetic will publish its third quarter results on 22 October 2015.
OKMETIC OYJ
Board of directors
For further information, please contact:
President Kai Seikku, Okmetic Oyj,
tel. +358 5028 0232, email: kai.seikku@okmetic.com
Senior Vice President, Finance, IT and Communications Juha Jaatinen, Okmetic
Oyj,
tel. +358 9 5028 0286, email: juha.jaatinen@okmetic.com
Okmetic is a technology company which supplies tailor-made silicon wafers for
sensor and semiconductor industries. 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 Helsinki under the code OKM1V. For more
information on the company, please visit our website at www.okmetic.com.
[HUG#1940500]
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