2008-10-30 12:30:36 CET
2008-10-30 12:31:35 CET
REGULATED INFORMATION
Okmetic Oyj - Interim report (Q1 and Q3)
OKMETIC INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2008
OKMETIC OYJ INTERIM REPORT 30 OCTOBER 2008 AT 1.30 P.M. OKMETIC INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2008 Okmetic is a technology company that supplies customised silicon wafers to the sensor and semiconductor industries and also sells its technological expertise. During the period under review, Okmetic's net sales amounted to 52.1 million euro (48.9 million euro). Profit for the period was 6.9 million euro (4.8 million euro). Earnings per share amounted to 0.41 euro (0.28 euro). REVIEW IN BRIEF - Net sales amounted to 52.1 million euro (48.9 million euro). - Profit for the period amounted to 6.9 million euro (4.8 million euro). - Earnings per share amounted to 0.41 euro (0.28 euro). - The equity ratio strengthened, amounting to 61.8 percent (57.1%). - Net cash flow from operating activities amounted to 10.3 million euro (3.6 million euro). - Periodic revenue from technology sales causes significant variations in the interim results. - Net sales for financial year 2008 are expected to amount to around 69 million euro and operating profit is expected to account for around 14 percent of net sales. KEY FIGURES -------------------------------------------------------------------------------- | 1,000 euro | 1.1.- | 1.1.- | 1.1.- | 1.1.- | 1.1.- | | | 30.9.08 | 30.9.07 | 31.12.07 | 31.12.06 | 31.12.05 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 52,116 | 48,862 | 64,652 | 63,694 | 49,822 | -------------------------------------------------------------------------------- | Operating | 7,368 | 6,140 | 7,121 | 9,877 | 580 | | profit | | | | | | -------------------------------------------------------------------------------- | % of net | 14.1 | 12.6 | 11.0 | 15.5 | 1.2 | | sales | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.41 | 0.28 | 0.31 | 0.41 | -0.10 | | share, euro | | | | | | -------------------------------------------------------------------------------- | Net cash from | 10,299 | 3,570 | 8,305 | 17,945 | 3,125 | | operating | | | | | | | activities | | | | | | -------------------------------------------------------------------------------- | Return on | 19.3 | 15.2 | 12.4 | 18.6 | -5.1 | | equity, % | | | | | | -------------------------------------------------------------------------------- | Gearing, % | 3.6 | 30.6 | 19.6 | 31.3 | 99.5 | -------------------------------------------------------------------------------- | Equity ratio, % | 61.8 | 57.1 | 55.3 | 51.1 | 41.1 | -------------------------------------------------------------------------------- | Average number | 363 | 362 | 362 | 360 | 359 | | of personnel | | | | | | | during the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- PROJECTIONS FOR THE NEAR FUTURE Okmetic's product selection comprises wafers with diameters of 100, 125, 150 and 200 mm, which are always made to each customer's detailed specifications. According to its strategy, Okmetic specialises in the manufacture of demanding sensor wafers and is the global market leader and a pioneer in technological development in this respect. The company's customers use sensor wafers as platforms for sensors that include automotive, aviation and medical as well as consumer electronics applications. Within the automotive industry, which represents the biggest market for microsensors, the most significant growth potential can be found in angular rate sensors which are used in driving systems. Tyre pressure sensors for cars are also becoming more popular. New, rapidly growing consumer electronics applications include silicon-based MEMS sensors and silicon microphones which are used in games, cameras and mobile phones. Medication administration systems and printer heads built on SOI wafers are also on the increase. Altogether, the sensor industry is expected to grow at a rate of more than ten percent per year in the long term. In the short term, however, growth is likely to fall short of ten percent per year. (Yole, IC Insights, SIA) Okmetic's semiconductor wafers are typically used in consumer electronics as well as in telecommunications and automotive applications, for example. The recent financial market turmoil has also impacted the semiconductor industry, and customers are now striving to keep their stocks as low as possible. The average sale prices of semiconductors are forecasted to fall towards the end of 2008. This is expected to result in the annual growth rate of semiconductor sales coming in at under five percent. In terms of volume, semiconductor shipments have been forecasted to grow by nine percent this year. (IC Insights) In addition to silicon wafers, Okmetic also sells its expertise in manufacturing technology for the solar cell industry in particular. Okmetic's order book for the rest of the year looks stable. The global financial market trend has weakened the visibility of the industry and the company for the rest of the year and for 2009. The company expects net sales for 2008 to amount to around 69 million euro and for profit to account for around 14 percent of net sales. EVENTS AFTER THE PERIOD OKMETIC TO CONVENE AN EXTRAORDINARY GENERAL MEETING The board of directors of Okmetic Oyj has convened an extraordinary general meeting on Thursday 6 November 2008 at 8.30 a.m. The meeting will be held in the Seutula conference room in Okmetic's head office at Piitie 2 in Koivuhaka, Vantaa, Finland. The agenda for the meeting will include: 1. Appointing a new member of the board of directors Okmetic Oyj's shareholders Outokumpu Oyj and Accendo Capital, which together hold approximately 31.8 percent of the company's shares and the associated votes, have announced that they will be putting forward a proposal at the extraordinary general meeting for an additional member to be appointed to join the current five members of the company's board of directors and for the new member to be remunerated proportionally to the length of his term of office as per the decision of the annual general meeting of 3 April 2008. The shareholders in question propose that the new member be Henri Österlund, M.Sc. (Economics and Business Administration), who has agreed to the appointment. Mr Österlund is the managing director of Accendo Capital Partners Oy. 2. The board of directors' authorisation to decide on repurchasing the company's own shares The board of directors will be putting forward a proposal at the extraordinary general meeting for the company's board of directors to be authorised to decide on repurchasing 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 can decide 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 (directed repurchase). The board of directors proposes that the authorisation remain in force until the annual general meeting of spring 2010, however, until no later than 6 May 2010. 3. The board of directors' authorisation to decide on transferring rights to the company's own shares The board of directors will be putting forward a proposal at the extraordinary general meeting for the company's board of directors to be authorised to decide on share issues for transferring 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 will be authorised to decide on all the terms and conditions of the share issues. The authorisation will be limited to transferring rights to the company's own shares as held by the company. The share issue can be carried out as a directed issue. The board of directors may also decide to cancel the repurchased shares. The authorisation will be effective until further notice, however, until no later than 30 June 2013. Moreover, the authorisation cannot override the authorisation granted at the annual general meeting of 3 April 2008 regarding share issues. MARKETS The market situation in the customer industry has remained moderate throughout the period under review. As is typical in manufacture of micromechanical sensors, the growth rate has also been steadier than in the semiconductor industry this year. The increased popularity of automotive sensors and sensor-based consumer applications has compensated for the effect that the declining order book - as regards the automotive industry - has had on sensor manufacture. Growth within the semiconductor industry has demonstrated the usual variation between products during the early part of the year. The third quarter of the year has seen the publication of reports on excess capacity in semiconductor plants. Despite this, overall sales in the semiconductor industry have grown around five percent during the first eight months of the year compared to the corresponding period of the previous year (SIA, WSTS). Volume-wise, semiconductor sales have been increasing slightly faster. The shipment volumes of the wafer sizes that Okmetic supplies have dropped by a few percent during the early part of the year compared to the corresponding period of the previous year. SALES The group's net sales amounted to 52.1 million euro (48.9 million euro). Net sales per customer segment -------------------------------------------------------------------------------- | | 2008 | (2007) | | | from beginning of year | (on average) | -------------------------------------------------------------------------------- | Sensors | 36% | (34%) | -------------------------------------------------------------------------------- | Semiconductors | 39% | (56%) | -------------------------------------------------------------------------------- | Technology | 25% | (10%) | -------------------------------------------------------------------------------- Okmetic's sensor wafer sales have grown and developed on target. Demand for semiconductor wafers has shown signs of weakening during the period under review. Technology sales encompass not just the sale of Okmetic's technological expertise but also crystals and occasionally the recycling of raw material and silicon waste. The fact that revenues from transferring manufacturing expertise are recorded in several instalments and also that the significant periodic fluctuation in other technology sales both cause significant variation in the percentage of net sales that technology sales represent periodically, both in terms of different customer segments and different market areas. Revenues from technology sales have played a significant role during the current year. Net sales per market area -------------------------------------------------------------------------------- | | 2008 | (2007) | | | from beginning of year | (on average) | -------------------------------------------------------------------------------- | North America | 38% | (48%) | -------------------------------------------------------------------------------- | Europe | 34% | (32%) | -------------------------------------------------------------------------------- | Asia | 28% | (20%) | -------------------------------------------------------------------------------- The exchange rate fluctuations of the main currencies of each market area as well as their respective sales structures considerably affect the relative shares of different market areas. PROFIT Okmetic group's profit was 6.9 million euro (4.8 million euro). Earnings per share amounted to 0.41 euro (0.28 euro). The group's hedging efforts generated a loss of 0.5 million euro during the most recent quarter, which weakened the profit of 0.7 million euro from hedging efforts recorded in the previous interim result. Periodic revenue from technology sales causes significant variations in the interim results. Revenues from technology sales have a considerable impact on the figures for 2008. FINANCING AND INVESTMENTS The group's financial situation is good. Net cash flow from operating activities amounted to 10.3 million euro (3.6 million euro). The value added tax liabilities and receivables resulting from an internal business acquisition that was concluded in Finland at the turn of the year have been paid during the period under review. In April, the company distributed a dividend of 31.8 percent, i.e. 1.7 million euro, of the profit accrued in 2007, representing a 0.10 euro dividend per share. The group's investments amounted to 1.9 million euro (4.4 million euro). Okmetic reported in September that it intends to invest six million euro in its sensor wafer production during 2009. The investment is part of the company's strategic development programme that aims to double sensor wafer sales from the current 25 million to 50 million euro in four years. Reaching this goal requires 15 million euro of total investments as well as investments in product development. The projected growth would make sensor wafers Okmetic's biggest product segment. At the end of the period, cash and cash equivalents amounted to 17.5 million euro (9.8 million euro). Return on equity amounted to 19.3 percent (15.2%). The group's equity ratio strengthened, amounting to 61.8 percent (57.1%). Equity per share amounted to 2.98 euro (2.58 euro). PRODUCT DEVELOPMENT Product development accounted for 3.2 percent (2.9%) of Okmetic's net sales. Product development efforts have targeted SOI sensor wafers in particular. PERSONNEL The average number of employees at Okmetic was 363 (362). At the end of the period, 313 of these were located in Finland, 45 in the US and three in Japan. BUSINESS RISKS The majority of Okmetic's sales are concluded in US dollars and a relatively small proportion in Japanese yen. The value of both currencies has changed significantly relative to the euro since the beginning of the year. The recent strengthening of the dollar and the yen relative to the euro improves the group's profit-making ability. Despite hedging, the company remains vulnerable to exchange rate fluctuations. Any prolongation of the current global economic crisis and the associated low level of consumer demand will significantly compromise the company's possibilities of continuing to make good profit. Okmetic Oyj has a 13.2 percent shareholding in a Swedish company, Norstel AB, which is currently under development. The holding involves a business risk associated with developing enterprises. The change in the value of the holding has been translated into a change in equity. SHARE PRICE DEVELOPMENT, TRADING AND NOTIFICATIONS A total of 7.1 million shares (10.4 million shares) were traded between 1 January and 30 September 2008, representing 42.2 percent (61.7%) of the share total of 16.9 million. The lowest quotation of the period was 2.20 euro (3.00 euro) and the highest was 3.14 euro per share (4.67 euro), with an average of 2.66 euro (4.01 euro). The closing quotation of the period was 3.00 euro (3.43 euro). The market capitalisation of Okmetic's shares amounted to 50.7 million euro (57.9 million euro) at the end of the period. Ilmarinen Mutual Pension Insurance Company (business identity code 0107638-1) increased its holding of Okmetic's shares and voting rights on 15 October 2008 to 1,149,300 shares, which represents 6.81 percent of the company's share capital. Accendo Capital SICAV investment fund (Luxembourg) increased its holding of Okmetic's shares and voting rights on 18 September 2008 to 2,663,810 shares, which represents 15.77 percent of the company's share capital. CCM Master Qualified Fund, Ltd. decreased its holding of Okmetic's shares and voting rights on 18 September 2008 to 3.02 percent. OWN SHARES The company has not repurchased its own shares and the board of directors has not been authorised to repurchase or transfer rights to the company's own shares. The board of directors has announced that it will be putting forward a proposal at the extraordinary general meeting whereby the company's board of directors would be authorised to repurchase and transfer rights to the company's own shares as described under ‘Events after the period' above. OPTIONS The company has no options on issue at the moment. BOARD OF DIRECTORS' AUTHORISATION TO INCREASE SHARE CAPITAL The annual general meeting held on 3 April 2008 authorised the board of directors to decide on new issues, options and other share entitlements according to the first paragraph of section 10 of the Finnish Companies Act. The aggregate number of shares issued on the basis of the authorisation may not exceed 3,377,500 shares, which represents approximately 20 percent of all the shares of the company. The board of directors is authorised to decide on all the terms and conditions concerning the issue of shares, options and other share entitlements. Issuing shares, options and other share entitlements can be carried out as a private placement. The authorisation is effective until the following annual general meeting of shareholders. Vantaa, 30 October 2008 Board of directors ABRIDGED FINANCIAL STATEMENTS AND TABLES 1.1. - 30.9.2008 (unaudited) ACCOUNTING PRINCIPLES These interim financial statements have been prepared in accordance with the IAS 34 standard. In preparing these interim financial statements, Okmetic has followed the same accounting policies as in the financial statements for 2007 except for the effect of changes required by the adoption of the following new standards, interpretations or revisions to published standards adopted on 1 January 2008: IFRIC 11, IFRS 2 - Group and treasury share transactions provides guidance on whether share-based transactions involving treasury shares or involving group entities should be accounted for as equity-settled or cash-settled payment transactions in the stand-alone accounts of the parent and group companies. This interpretation does not have any impact on the group's financial statements. In addition, the group has adopted the following amendment to the standards, which has been issued in 2008: IAS 39 (Amendment) and IFRS 7 (Amendment), Reclassification of financial assets permits an entity to reclassify non-derivative financial assets out of the held for trading category and from the available-for-sale category in particular circumstances and with certain criteria. In case of reclassification, additional disclosures are required. The amendment is effective from 1 July 2008. CONDENSED CONSOLIDATED INCOME STATEMENT -------------------------------------------------------------------------------- | 1,000 euro | 1.7.- | 1.7.- | 1.1.- | 1.1.- | 1.1.- | | | 30.9.08 | 30.9.07 | 30.9.08 | 30.9.07 | 31.12.07 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 18,090 | 15,927 | 52,116 | 48,862 | 64,652 | -------------------------------------------------------------------------------- | Cost of sales | -13,627 | -11,660 | -39,141 | -37,760 | -50,967 | -------------------------------------------------------------------------------- | Gross profit | 4,463 | 4,267 | 12,974 | 11,102 | 13,685 | -------------------------------------------------------------------------------- | Other income | -2,374 | -1,466 | -5,606 | -4,962 | -6,564 | | and expenses | | | | | | -------------------------------------------------------------------------------- | Operating | 2,089 | 2,801 | 7,368 | 6,140 | 7,121 | | profit | | | | | | -------------------------------------------------------------------------------- | Financial | 595 | -573 | -468 | -1,379 | -1,906 | | income and | | | | | | | expenses | | | | | | -------------------------------------------------------------------------------- | Profit before | 2,683 | 2,228 | 6,900 | 4,761 | 5,215 | | tax | | | | | | -------------------------------------------------------------------------------- | Income tax | 186 | -99 | 42 | -5 | 90 | -------------------------------------------------------------------------------- | Profit for | 2,870 | 2,129 | 6,942 | 4,757 | 5,305 | | the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Basic and | 0.17 | 0.12 | 0.41 | 0.28 | 0.31 | | diluted | | | | | | | earnings per | | | | | | | share, euro | | | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET -------------------------------------------------------------------------------- | 1,000 euro | September 30, | September 30, | December 31, | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Property, plant and | 40,163 | 45,206 | 43,355 | | equipment | | | | -------------------------------------------------------------------------------- | Available-for-sale | 1,541 | 678 | 2,431 | | financial assets | | | | -------------------------------------------------------------------------------- | Other receivables | 5,388 | 2,788 | 2,731 | -------------------------------------------------------------------------------- | Total non-current | 47,092 | 48,672 | 48,517 | | assets | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 7,617 | 7,043 | 6,399 | -------------------------------------------------------------------------------- | Receivables | 10,105 | 10,684 | 14,439 | -------------------------------------------------------------------------------- | Cash and cash | 17,493 | 9,826 | 13,308 | | equivalents | | | | -------------------------------------------------------------------------------- | Total current assets | 35,215 | 27,553 | 34,147 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total assets | 82,307 | 76,226 | 82,664 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity and | | | | | liabilities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | | -------------------------------------------------------------------------------- | Share capital | 11,821 | 11,821 | 11,821 | -------------------------------------------------------------------------------- | Other equity | 38,475 | 31,678 | 33,828 | -------------------------------------------------------------------------------- | Total equity | 50,296 | 43,499 | 45,649 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | -------------------------------------------------------------------------------- | Non-current | 15,504 | 21,625 | 17,716 | | liabilities | | | | -------------------------------------------------------------------------------- | Current liabilities | 16,506 | 11,101 | 19,299 | -------------------------------------------------------------------------------- | Total liabilities | 32,010 | 32,726 | 37,014 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and | 82,307 | 76,226 | 82,664 | | liabilities | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED CASH FLOW STATEMENT -------------------------------------------------------------------------------- | 1,000 euro | January 1 - | January 1 - | January 1 - | | | September 30, | September 30, | December 31, | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from operating activities: | | | -------------------------------------------------------------------------------- | Profit before tax | 6,900 | 4,761 | 5,215 | -------------------------------------------------------------------------------- | Adjustments | 5,678 | 7,425 | 9,826 | -------------------------------------------------------------------------------- | Change in working | -1,902 | -4,717 | -2,235 | | capital | | | | -------------------------------------------------------------------------------- | Interest received | 322 | 306 | 394 | -------------------------------------------------------------------------------- | Interest paid and | -674 | -4,144 | -4,805 | | other financial | | | | | items | | | | -------------------------------------------------------------------------------- | Tax paid | -24 | -61 | -90 | -------------------------------------------------------------------------------- | Net cash from | 10,299 | 3,570 | 8,305 | | operating activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investing activities: | | | -------------------------------------------------------------------------------- | Proceeds from | 21 | 1,305 | 498 | | investing activities | | | | -------------------------------------------------------------------------------- | Capital expenditure | -1,482 | -5,330 | -4,809 | -------------------------------------------------------------------------------- | Net cash used in | -1,461 | -4,025 | -4,311 | | investing activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from financing activities: | | | -------------------------------------------------------------------------------- | Repayments of | -2,873 | -20,665 | -21,540 | | long-term borrowings | | | | -------------------------------------------------------------------------------- | Proceeds of | - | 18,000 | 18,000 | | long-term borrowings | | | | -------------------------------------------------------------------------------- | Payments of finance | -161 | -157 | -213 | | lease liabilities | | | | -------------------------------------------------------------------------------- | Dividends paid | -1,689 | - | - | -------------------------------------------------------------------------------- | Net cash used in | -4,723 | -2,822 | -3,754 | | financing activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Increase (+) / | 4,115 | -3,277 | 241 | | decrease (-) in cash | | | | | and cash equivalents | | | | -------------------------------------------------------------------------------- | Exchange rate | 70 | -81 | -117 | | changes | | | | -------------------------------------------------------------------------------- | Cash and cash | 13,308 | 13,184 | 13,184 | | equivalents at the | | | | | beginning of the | | | | | period | | | | -------------------------------------------------------------------------------- | Cash and cash | 17,493 | 9,826 | 13,308 | | equivalents at the | | | | | end of the period | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN EQUITY -------------------------------------------------------------------------------- | 1,000 euro | Share | Share | Trans-l | Fair | Retained | Total | | | capital | premium | ation | value | earnings | equity | | | | | differ- | reserve | | | | | | | ences | | | | -------------------------------------------------------------------------------- | Balance at | 11,821 | 20,186 | 75 | -114 | 13,682 | 45,649 | | 1 Jan 2008 | | | | | | | -------------------------------------------------------------------------------- | Available-f | | | | | | | | or-sale | | | | | | | | financial | | | | | | | | assets: | | | | | | | -------------------------------------------------------------------------------- | Fair value | | | | -900 | | -900 | | gains/losse | | | | | | | | s | | | | | | | | recognised | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Translation | | | 184 | | | 184 | | differences | | | | | | | -------------------------------------------------------------------------------- | Transfer to | | | 180 | | | 180 | | income | | | | | | | | statement | | | | | | | -------------------------------------------------------------------------------- | Equity | | -70 | | | | -70 | | component | | | | | | | | of | | | | | | | | convertible | | | | | | | | loan notes | | | | | | | -------------------------------------------------------------------------------- | Net income | - | -70 | 364 | -900 | - | -606 | | recognised | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Profit/loss | | | | | 6,942 | 6,942 | | for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Total | - | -70 | 364 | -900 | 6,942 | 6,336 | | recognised | | | | | | | | income and | | | | | | | | expenses | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | -1,689 | -1,689 | | distributio | | | | | | | | n | | | | | | | -------------------------------------------------------------------------------- | Balance at | 11,821 | 20,115 | 438 | -1,013 | 18,935 | 50,296 | | 30 Sep 2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at | 11,821 | 20,256 | 669 | -1,042 | 8,376 | 40,080 | | 1 Jan 2007 | | | | | | | -------------------------------------------------------------------------------- | Available-f | | | | | | | | or-sale | | | | | | | | financial | | | | | | | | assets: | | | | | | | -------------------------------------------------------------------------------- | Fair value | | | | -824 | | -824 | | gains/losse | | | | | | | | s | | | | | | | | recognised | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Translation | | | -504 | | | -504 | | differences | | | | | | | -------------------------------------------------------------------------------- | Transfer to | | | 60 | | | 60 | | income | | | | | | | | statement | | | | | | | -------------------------------------------------------------------------------- | Equity | | -70 | | | | -70 | | component | | | | | | | | of | | | | | | | | convertible | | | | | | | | loan notes | | | | | | | -------------------------------------------------------------------------------- | Net income | - | -70 | -444 | -824 | - | -1,338 | | recognised | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Profit/loss | | | | | 4,757 | 4,757 | | for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Total | - | -70 | -444 | -824 | 4,757 | 3,419 | | recognised | | | | | | | | income and | | | | | | | | expenses | | | | | | | -------------------------------------------------------------------------------- | Balance at | 11,821 | 20,185 | 225 | -1,866 | 13,133 | 43,499 | | 30 Sep 2007 | | | | | | | -------------------------------------------------------------------------------- CHANGES IN PROPERTY, PLANT AND EQUIPMENT -------------------------------------------------------------------------------- | 1,000 euro | January 1 - | January 1 - | January 1 - | | | September 30, | September 30, | December 31, | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Carrying amount | 43,355 | 47,821 | 47,821 | | at | | | | | the beginning of the | | | | | period | | | | -------------------------------------------------------------------------------- | Additions | 1,948 | 4,446 | 4,816 | -------------------------------------------------------------------------------- | Disposals | - | -530 | -521 | -------------------------------------------------------------------------------- | Depreciation | -5,272 | -6,077 | -8,102 | | and impairments | | | | -------------------------------------------------------------------------------- | Exchange differences | 133 | -453 | -659 | -------------------------------------------------------------------------------- | Carrying amount | 40,163 | 45,206 | 43,355 | | at the end of | | | | | the period | | | | -------------------------------------------------------------------------------- CHANGES IN INTEREST-BEARING LIABILITIES -------------------------------------------------------------------------------- | 1,000 euro | January 1 - | January 1 - | January 1 - | | | September 30, | September 30, | December 31, | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Carrying amount | 22,259 | 25,731 | 25,731 | | at the beginning of | | | | | the period | | | | -------------------------------------------------------------------------------- | Proceeds of loans | - | 17,974 | 17,974 | | from financial | | | | | institutions | | | | -------------------------------------------------------------------------------- | Repayments of loans | -1,870 | -15,960 | -16,833 | | from financial | | | | | institutions | | | | -------------------------------------------------------------------------------- | Repayments of | -928 | -4,591 | -4,591 | | sub-ordinated loans | | | | -------------------------------------------------------------------------------- | Changes in finance | -161 | -15 | -21 | | lease liabilities | | | | -------------------------------------------------------------------------------- | Carrying amount | 19,300 | 23,138 | 22,259 | | at the end of | | | | | the period | | | | -------------------------------------------------------------------------------- DIVIDENDS PAID In April, the company distributed a dividend of 31.8 percent, i.e. 1.7 million euro, of the profit accrued in 2007, representing a 0.10 euro dividend per share. COMMITMENTS AND CONTINGENCIES -------------------------------------------------------------------------------- | 1,000 euro | September 30, | September 30, | December 31, | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Loans secured | 14,500 | 17,500 | 15,667 | | with | | | | | collaterals | | | | -------------------------------------------------------------------------------- | Collaterals | 29,001 | 34,046 | 29,001 | -------------------------------------------------------------------------------- | Off-balance sheet | 260 | 217 | 238 | | lease commitments | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Nominal values | | | | | of | | | | | derivative contracts | | | | -------------------------------------------------------------------------------- | Currency forward | 1,344 | 3,000 | - | | agreements | | | | -------------------------------------------------------------------------------- | Currency options, | 689 | - | 3,484 | | call | | | | -------------------------------------------------------------------------------- | Currency options, | 345 | - | - | | put | | | | -------------------------------------------------------------------------------- | Electricity | 2,609 | 2,174 | 2,383 | | derivatives | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | | | of | | | | | derivative contracts | | | | -------------------------------------------------------------------------------- | Currency forward | -49 | 154 | - | | agreements | | | | -------------------------------------------------------------------------------- | Currency options, | 15 | - | 119 | | call | | | | -------------------------------------------------------------------------------- | Currency options, | -11 | - | - | | put | | | | -------------------------------------------------------------------------------- | Electricity | 522 | 232 | 419 | | derivatives | | | | -------------------------------------------------------------------------------- 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 Key management compensation during the period under review amounted to 1,152,000 euro (1,014,000 euro). KEY FIGURES SHOWING FINANCIAL PERFORMANCE -------------------------------------------------------------------------------- | | January 1 - | January 1 - | January 1 - | | | September 30, | September 30, | December 31, | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 52,116 | 48,862 | 64,652 | -------------------------------------------------------------------------------- | Change in net sales | 6.7 | 2.5 | 1.5 | | compared | | | | | to the | | | | | previous year's | | | | | period, % | | | | -------------------------------------------------------------------------------- | Export and foreign | 95.4 | 94.3 | 93.0 | | operations share of | | | | | net sales, % | | | | -------------------------------------------------------------------------------- | Operating profit | 7,368 | 6,140 | 7,121 | -------------------------------------------------------------------------------- | % of net sales | 14.1 | 12.6 | 11.0 | -------------------------------------------------------------------------------- | Profit before tax | 6,900 | 4,761 | 5,215 | -------------------------------------------------------------------------------- | % of net sales | 13.2 | 9.7 | 8.1 | -------------------------------------------------------------------------------- | Return on equity, % | 19.3 | 15.2 | 12.4 | -------------------------------------------------------------------------------- | Return on | 15.5 | 12.7 | 10.8 | | investment, % | | | | -------------------------------------------------------------------------------- | Non-interest bearing | 12,710 | 9,588 | 14,755 | | liabilities | | | | -------------------------------------------------------------------------------- | Gearing, % | 3.6 | 30.6 | 19.6 | -------------------------------------------------------------------------------- | Equity ratio, % | 61.8 | 57.1 | 55.3 | -------------------------------------------------------------------------------- | Capital expenditure | 1,948 | 4,446 | 4,816 | -------------------------------------------------------------------------------- | % of net sales | 3.7 | 9.1 | 7.4 | -------------------------------------------------------------------------------- | Depreciation | 5,272 | 6,077 | 8,095 | -------------------------------------------------------------------------------- | Research and | 1,645 | 1,432 | 1,854 | | development | | | | | expenditure 1) | | | | -------------------------------------------------------------------------------- | % of net sales | 3.2 | 2.9 | 2.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of | 363 | 362 | 362 | | personnel during the | | | | | period | | | | -------------------------------------------------------------------------------- | Personnel at the end | 361 | 356 | 357 | | of the period | | | | -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- | | September 30, | September 30, | December 31, | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share | 0.41 | 0.28 | 0.31 | | basic and diluted, | | | | | euro | | | | -------------------------------------------------------------------------------- | Equity per share, | 2.98 | 2.58 | 2.70 | | euro | | | | -------------------------------------------------------------------------------- | Dividend per share, | - | - | 0.10 | | euro | | | | -------------------------------------------------------------------------------- | Dividend/earnings, % | - | - | 31.8 | -------------------------------------------------------------------------------- | Effective dividend | - | - | 3.3 | | yield, % | | | | -------------------------------------------------------------------------------- | Price/earnings (P/E) | 7.3 | 12.2 | 9.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share price development | | | | (Jan 1-) | | | -------------------------------------------------------------------------------- | Average trading | 2.65 | 4.01 | 3.87 | | price | | | | -------------------------------------------------------------------------------- | Lowest trading price | 2.20 | 3.00 | 2.54 | -------------------------------------------------------------------------------- | Highest trading | 3.14 | 4.67 | 4.67 | | price | | | | -------------------------------------------------------------------------------- | Trading price at the | 3.00 | 3.43 | 3.03 | | end of the period | | | | -------------------------------------------------------------------------------- | Market | 50,663 | 57,924 | 51,169 | | capitalisation at | | | | | the end of the | | | | | period, 1,000 euro | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Trading volume (Jan 1-) | | | -------------------------------------------------------------------------------- | Trading volume, | 7,129,877 | 10,419,055 | 13,175,961 | | transactions | | | | -------------------------------------------------------------------------------- | In relation to | 42.2 | 61.7 | 78.0 | | weighted average | | | | | number of shares, % | | | | -------------------------------------------------------------------------------- | Trading volume, euro | 18,877,311 | 41,800,470 | 51,002,491 | -------------------------------------------------------------------------------- | The weighted average | 16,887,500 | 16,887,500 | 16,887,500 | | number of shares | | | | | during the period | | | | | under review | | | | | adjusted by the | | | | | share issue | | | | -------------------------------------------------------------------------------- | The number of shares | 16,887,500 | 16,887,500 | 16,887,500 | | at the end of the | | | | | period adjusted by | | | | | the share issue | | | | -------------------------------------------------------------------------------- QUARTERLY KEY FIGURES -------------------------------------------------------------------------------- | | 10-12/08 | 7-9/08 | 4-6/08 | 1-3/08 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | | 18,090 | 16,992 | 17,034 | -------------------------------------------------------------------------------- | Compared to previous | | 6.5 | -0.2 | 7.9 | | quarter, % | | | | | -------------------------------------------------------------------------------- | Operating profit | | 2,089 | 2,737 | 2,542 | -------------------------------------------------------------------------------- | % of net sales | | 11.5 | 16.1 | 14.9 | -------------------------------------------------------------------------------- | Profit before tax | | 2,683 | 2,582 | 1,634 | -------------------------------------------------------------------------------- | % of net sales | | 14.8 | 15.2 | 9.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net cash flow generated from: | | | | -------------------------------------------------------------------------------- | Operating activities | | 4,522 | 3,495 | 2,281 | -------------------------------------------------------------------------------- | Investing activities | | -289 | -841 | -331 | -------------------------------------------------------------------------------- | Financing activities | | -48 | -4,616 | -58 | -------------------------------------------------------------------------------- | Increase/decrease in cash and | | 4,185 | -1,962 | 1,892 | | cash equivalents | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at the end of | | 361 | 370 | 359 | | the | | | | | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 10-12/07 | 7-9/07 | 4-6/07 | 1-3/07 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 15,790 | 15,927 | 15,613 | 17,322 | -------------------------------------------------------------------------------- | Compared to previous | -0.9 | 2.0 | -9.9 | 8.2 | | quarter, % | | | | | -------------------------------------------------------------------------------- | Operating profit | 981 | 2,801 | 662 | 2,677 | -------------------------------------------------------------------------------- | % of net sales | 6.2 | 17.6 | 4.2 | 15.5 | -------------------------------------------------------------------------------- | Profit before tax | 454 | 2,229 | 207 | 2,326 | -------------------------------------------------------------------------------- | % of net sales | 2.9 | 14.0 | 1.3 | 13.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net cash flow generated from: | | | | -------------------------------------------------------------------------------- | Operating activities | 4,735 | 2,357 | -414 | 1,628 | -------------------------------------------------------------------------------- | Investing activities | -285 | -593 | -1,582 | -1,850 | -------------------------------------------------------------------------------- | Financing activities | -931 | -58 | -3,582 | 817 | -------------------------------------------------------------------------------- | Increase/decrease in cash and | 3,518 | 1,706 | -5,578 | 595 | | cash equivalents | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at the end of | 357 | 356 | 369 | 360 | | the period | | | | | -------------------------------------------------------------------------------- DEFINITIONS OF KEY FINANCIAL FIGURES -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 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, % | = | Total equity x 100 | -------------------------------------------------------------------------------- | | | Balance sheet total - advances | | | | received | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gearing, % | = | (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 | = | Number of shares at the end of the | | end of 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 figures are unaudited. In the written report, the figures in parenthesis refer to the corresponding period in the previous year. The future estimates and forecasts presented in this report are based on company management's current knowledge. Actual events and results may differ from the estimates presented here. OKMETIC OYJ Antti Rasilo President For further information, please contact: President Antti Rasilo, Okmetic Oyj, tel. +358 40 746 1351, email: antti.rasilo@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 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. 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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