Okmetic Oyj Interim report 1 January - 30 September 2015: Good profitability and cash flow in slowing market
(Thomson Reuters ONE) -
OKMETIC OYJ INTERIM REPORT 22 OCTOBER 2015 AT 8.00 A.M.
OKMETIC OYJ INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2015: GOOD PROFITABILITY AND
CASH FLOW IN SLOWING MARKET
JULY-SEPTEMBER IN BRIEF
* Net sales amounted to 20.8 (19.3) million euro, up 7.8 (5.9) %.
* Sensor wafer deliveries amounted to 13.0 (11.2) million euro, up 15.8 (4.3)
%.
* Semiconductor wafer deliveries amounted to 7.9 (7.3) million euro, up 8.3 (-
3.1) %.
* Operating profit was 3.5 (2.8) million euro, corresponding to 17.0% (14.3%)
of net sales.
* Profit for the period was 2.7 (2.2) million euro.
* Basic earnings per share was 0.16 (0.13) euro.
* Net cash flow from operations amounted to 4.8 (3.6) million euro.
JANUARY-SEPTEMBER IN BRIEF
* Net sales amounted to 64.5 (55.4) million euro, up 16.4 (7.2) %.
* Sensor wafer deliveries amounted to 43.0 (34.2) million euro, up 25.7 (12.3)
%.
* Semiconductor wafer deliveries amounted to 22.0 (20.5) million euro, up 7.0
(-3.8) %.
* Operating profit was 9.4 (4.8) million euro, corresponding to 14.5% (8.7%)
of net sales.
* Profit for the period was 7.0 (3.7) million euro.
* Basic earnings per share was 0.42 (0.22) euro.
* Net cash flow from operations amounted to 9.3 (6.2) million euro.
Unless otherwise stated, figures in parenthesis refer to the corresponding
period of the previous year.
SHORT-TERM OUTLOOK
Demand for semiconductors in 2015 is anticipated to remain flat or fall slightly
from the previous year's level. The final quarter is expected to be weaker than
the rest of the year. The decline in the value of the silicon wafer market is
believed to have stopped. When measured in surface area, the market is at a
record high.
Demand for Okmetic's sensor wafers and other special wafers included in the
sensor wafer category is expected to maintain its sustained growth in 2015.
These wafers have more stable demand and price level than semiconductor wafers,
which are more sensitive to economic fluctuations and also come under greater
price pressure. Demand was at its highest in the beginning of the year, and in
line with the normal seasonal fluctuation, the last quarter of the year is
expected to be weaker than the rest of the year.
FINANCIAL GUIDANCE FOR 2015
The company retains its existing guidance, according to which net sales and
operating profit in 2015 are estimated to clearly exceed the level of 2014.
PRESIDENT KAI SEIKKU:
"Demand for silicon wafers slowed down in the third quarter. The value of the
wafer business in comparable currencies remained close to the level of 2014.
Okmetic's sensor wafer demand continued strong concerning both wafers used for
sensor applications and other high value-added silicon wafers. Growth in the
value of sensor wafer deliveries slowed in the third quarter, but was still at a
good 15.8 percent level against the comparison period. In terms of net sales,
the third quarter fell short of the previous two quarters. This is not in
keeping with normal seasonal fluctuation and points to slowing growth in
Okmetic's customer industries in the second half of the year.
The latest forecasts for the semiconductor market as a whole suggest that growth
will level off in 2015 for the first time since 2012. At its worst, the demand
for semiconductors is estimated to decline by approximately one percent, driven
in particular by slowing sales in the PC and smart phone markets. For automotive
and other industrial electronics applications, changes in demand are expected to
be more moderate. The rest of the year is going to be a time of softer demand
also for Okmetic, although the strongest fluctuations are taking place outside
the company's target markets.
The value of deliveries saw strong growth both in the third quarter and in
January-September in North America, which has regained its position as the
biggest market area for Okmetic. The value of deliveries in Europe fell year-on-
year, whereas Asia saw healthy growth in deliveries. Demand has been
particularly brisk in North America on the back of new and bigger customer
accounts, but the market area has also benefited from the strengthening of the
US dollar over the course of the year.
In the third quarter, Okmetic's operating profit (17.0% of net sales) was at a
very good level thanks to a favourable product mix and slightly lower cost level
than in the previous quarters of 2015. As a result of the strong operating
profit, net cash flow from operating activities (4.8 million euro) for the
quarter exceeded that for the entire first half of the year.
Okmetic revised its long-term financial targets and customer segments in
connection with the company's Capital Markets Day on 2 October. The new customer
segments are Sensor wafers and Discrete&Analog wafers (D&A wafers). The Sensor
wafer segment includes silicon wafers used for MEMS and other sensor
applications. The D&A wafer segment consists of high resistivity wafers and high
voltage SOI wafers currently included in Sensor wafer category as well as of
other semiconductor wafers. The changes come into force from the beginning of
2016. The deliveries of high resistivity wafers used in RF applications have
surged during this year, with continued growth expected in the next few years.
The new revised customer segments better reflect the company's business dynamics
and the kind of segmentation its customers use."
KEY FIGURES
1,000 euro 1 Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec,
2015 2014 2015 2014 2014
Net sales 20,820 19,320 64,500 55,425 74,104
Operating profit before
depreciation (EBITDA) 5,165 4,420 14,266 9,745 12,985
Operating profit 3,540 2,757 9,378 4,822 6,401
% of net sales 17.0 14.3 14.5 8.7 8.6
Profit for the period 2,665 2,219 7,044 3,749 4,832
Basic earnings per share, euro
0.16 0.13 0.42 0.22 0.29
Net cash flow from
operating activities 4,761 3,644 9,317 6,209 12,478
Net interest-bearing
liabilities 959 4,174 959 4,174 -1,110
Equity ratio, % 70.9 70.6 70.9 70.6 70.5
Average number of
personnel during
the period 406 379 397 371 370
MARKETS
Customer industries sensor and semiconductor industries
Sensor industry
In 2015, the sales value in the sensor industry is estimated to grow by 6-11
percent, and an annual growth rate of 7-17 percent is expected for the next few
years. In terms of volume, sensor deliveries are likely to clearly rise to a
record level in 2015. The sensor wafer sales have been spurred by the
proliferation of mobile devices in particular. (IC Insights, IHS, Semico, Yole)
Certain silicon-based microelectromechanical (MEMS) products within the sensor
segment have higher sales growth than the others. As a result of the increasing
amount of sensors in mobile devices, the demand for e.g. pressure sensors and
microphones has surged. 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
Sales in the semiconductor industry saw a decline in the third quarter of 2015.
Semiconductor industry's sales for the first eight months of 2015 were, however,
nearly four percent higher than in the corresponding period last year (SIA). The
last quarter of the year is expected to be weaker than the rest of the year, and
growth estimates for 2015 have been revised downwards. Growth of -1 to +2
percent in terms of value is forecast for 2015 (Gartner, IC Insights, VLSI,
WSTS). Sales are estimated to be around 338 billion US dollars (Gartner) and
volume growth approximately six percent (IC Insights). The market is slowing
down as a result of seasonal fluctuations, exchange rate effects, stagnant smart
phone and tablet markets as well as developments in world economy, and China in
particular, that are affecting the automotive industry and consumption in
general.
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 eight
percent in the first half of the year compared the corresponding period in 2014
were at a record-high level. According to the company's own estimate, the
silicon wafer market reflects the seasonal fluctuations in the semiconductor
market and declines slightly in the last quarter of the year. The decline in the
market value measured in US dollars is estimated to have stopped. A growth of
1-3 percent in surface area is estimated for the silicon wafer market for the
years 2015-2017 (SEMI).
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 has been a key growth area for Okmetic for a long time.
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 as well as analog circuits. 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. Okmetic has launched new products for
these areas.
SALES
In January-September, Okmetic's net sales amounted to 64.5 (55.4) million euro.
Net sales grew by 16.4 (7.2) percent from the corresponding period last year,
especially due to strong demand for sensor wafers and strengthening of US
dollar. In the third quarter, net sales amounted to 20.8 (19.3) million euro and
increased by 7.8 (5.9) percent from the corresponding period in 2014. Okmetic's
market share remained stable in the product groups important to the company.
Silicon wafer net sales growth with comparable US dollar exchange rate was 3.4
percent in January-September and 0.7 percent in July-September.
As of 1 January 2015, Okmetic has reported the value of deliveries in euros
instead of percentage shares. In addition, Other business is reported under
semiconductor wafer deliveries. These reporting changes are explained more in
detail in the interim report published on 29 April 2015.
As of financial year starting on 1 January 2016, the company will report the net
sales of its new customer segments, Sensor wafers and Discrete&Analog wafers
(D&A wafers), instead of value of deliveries.
Value of deliveries per customer area
1,000 euro 1 Jul- 1Jul- 1 Jan- 1Jan- 1Jan-
30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec,
2015 2014 2015 2014 2014
Sensor wafers 1) 12,998 11,225 43,040 34,231 46,119
Semiconductor wafers 7,878 7,272 21,984 20,537 27,001
Total 20,876 18,497 65,024 54,768 73,120
1) The category sensor wafers includes all high value-added special wafers.
Demand for sensor wafers continued at a good level in the third quarter. In
January-September, the value of sensor wafer deliveries grew by 25.7 (12.3)
percent from the comparison period last year. The continued growth in production
and delivery volumes of the strategically important SOI wafers was particularly
positive.
The value of semiconductor wafer deliveries grew by 7.0 (decreased by 3.8)
percent in January-September from the comparison period last year.
Value of deliveries per market area
1,000 euro 1Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec,
2015 2014 2015 2014 2014
North America 9,388 6,911 29,579 20,676 27,799
Europe 6,867 7,812 21,670 22,426 29,554
Asia 4,621 3,774 13,775 11,666 15,767
Total 20,876 18,497 65,024 54,768 73,120
Both in January-September and in July-September, the value of deliveries showed
strong growth in North America. In Europe, the value of deliveries decreased
compared to the figures in the corresponding period last year. In Asia, which is
of strategic importance, demand continued to grow both in January-September and
July-September.
PROFITABILITY
July-September
In July-September, Okmetic's operating profit amounted to 3.5 (2.8) million
euro, corresponding to 17.0 (14.3) percent of net sales. The operating profit
was improved by a lower cost level than in the previous quarters as well as a
favourable product mix. Profit for the period was 2.7 (2.2) million euro. Basic
earnings per share was 0.16 (0.13) euro. Diluted earnings per share was 0.16
(0.13) euro.
January-September
Okmetic's operating profit for January-September amounted to 9.4 (4.8) million
euro, corresponding to 14.5 (8.7) percent of net sales. Operating profit was
improved 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 7.0 (3.7) million euro. Basic earnings per share was 0.42 (0.22)
euro. Diluted earnings per share was 0.42 (0.22) euro.
FINANCING
The company's financial position is solid. In January-September, net cash flow
from operations amounted to 9.3 (6.2) million euro.
The company's interest-bearing liabilities amounted to 11.9 (14.5) million euro
on 30 September 2015. At the end of the period, cash and cash equivalents
amounted to 10.9 (10.3) million euro. The company's net interest-bearing
liabilities amounted to 1.0 (4.2) million euro on 30 September 2015. The company
has ensured liquidity with credit facilities of 6.0 million euro. On 30
September 2015, the credit facilities were fully unused (as well as on 30
September 2014).
Return on equity was 14.7 (8.4) percent. Return on investment was 16.3 (9.1)
percent. The company's equity ratio was 70.9 (70.6) percent. Equity per share
amounted to 3.78 (3.69) euro.
CAPITAL EXPENDITURE
In January-September, capital expenditure amounted to 4.5 (2.5) million euro.
The investments focused mainly on increasing capacity and capability of SOI and
200 mm wafers.
In May, the board of directors of Okmetic Oyj approved investments of 8.4
million euro in total in 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-September, the company expensed 1.9 (1.8) million euro in product
development projects, corresponding to 2.9 (3.2) percent of net sales. Product
development costs have not been capitalised.
In January-September, focus areas in Okmetic's product development projects
included process development of 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 397 (371) people in January-September. At the end of
the period, Okmetic employed 384 (363) people, of which 336 worked in Finland,
42 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 is 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 September 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 September 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 566,207 3.3
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
Kaleva Mutual Insurance Company 212,700 1.2
Foreign investors and nominee accounts
held by custodian banks 3,246,838 18.8
Other 8,444,010 48.8
Total 17,287,500 100.0
SHARE PRICE PERFORMANCE AND TRADING
A total of 4.2 (2.8) million shares were traded between 1 January and 30
September 2015, representing 24.5 (16.1) 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 6.34 (4.67) euro. The closing quotation of the period on 30 September
2015 was 7.08 (4.95) euro. At the end of the period, the market capitalisation
amounted to 122.4 (85.6) million euro.
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.
EVENTS AFTER THE INTERIM PERIOD
Okmetic announced of the revision of its customer segmentation as well as new
long-term financial targets in its Capital Markets Day on 2 October 2015.
The company's new customer segments are Sensor wafers and Discrete&Analog (D&A
wafers). The revised customer segmentation facilitates the company's positioning
in the semiconductor industry's value chain and better reflects the company's
business focus. The Sensor wafer segment includes silicon wafers used for MEMS
and other sensor applications. The D&A wafer segment consists of high
resistivity wafers and high voltage SOI wafers currently included in Sensor
wafers as well as of other semiconductor wafers. As a result of these changes,
Okmetic has two growing customer segments that are equal in size. New customer
segmentation will be applied in financial reporting as of financial year
starting on 1 January 2016. At the same time, the company will start reporting
net sales of the two customer segments instead of the value of deliveries.
Following the changes in customer segmentation, Okmetic's long-term financial
targets change as well. As of financial year starting on 1 January 2016, they
will be as follows:
* Organic growth of net sales 5-10 percent per annum (currently organic growth
of sensor wafer business at 10 percent per annum or more)
* Operating profit 10-15 percent of net sales (currently operating profit 10
percent of net sales or more)
CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 30 SEPTEMBER 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 Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec,
2015 2014 2015 2014 2014
Net sales 20,820 19,320 64,500 55,425 74,104
Cost of sales -14,451 -14,942 -46,763 -44,098 -58,909
Gross profit 6,369 4,378 17,737 11,327 15,195
Other income and
expenses -2,829 -1,621 -8,359 -6,505 -8,794
Operating profit 3,540 2,757 9,378 4,822 6,401
Financial income and
expenses -64 49 -214 -28 -350
Profit before tax 3,477 2,806 9,164 4,794 6,051
Income tax -812 -587 -2,119 -1,045 -1,219
Profit for the period 2,665 2,219 7,044 3,749 4,832
Other comprehensive
income:
Items that may be
reclassified to profit or
loss in subsequent
periods
Cash flow hedges 3 16 -4 17 -11
Translation differences -6 557 616 566 891
Other comprehensive
income for the period,
net of tax -2 573 612 584 880
Total comprehensive
income for the period 2,663 2,792 7,657 4,333 5,712
Profit for the period
attributable to:
Equity holders of the
parent company 2,665 2,219 7,044 3,749 4,832
Total comprehensive
income attributable to:
Equity holders of the
parent company 2,663 2,792 7,657 4,333 5,712
Basic earnings per
share, euro 0.16 0.13 0.42 0.22 0.29
Diluted earnings per
share, euro 0.16 0.13 0.42 0.22 0.29
CONDENSED CONSOLIDATED BALANCE SHEET
1,000 euro 30 Sep, 30 Sep, 31 Dec,
2015 2014 2014
Assets
Non-current assets
Property, plant and equipment 42,712 42,864 2,538
Intangible assets 411 740 657
Other receivables 525 732 794
Total non-current assets 43,648 44,335 43,990
Current assets
Inventories 18,750 17,748 17,890
Receivables 16,994 16,440 14,347
Cash and cash equivalents 10,938 10,279 14,436
Total current assets 46,682 44,467 46,672
Total assets 90,329 88,802 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 52,026 50,398 51,805
Total equity 63,847 62,219 63,627
Liabilities
Non-current liabilities 12,156 13,407 13,561
Current liabilities 14,327 13,175 13,475
Total liabilities 26,483 26,583 27,036
Total equity and liabilities 90,329 88,802 90,662
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1,000 euro 1 Jan- 1 Jan- 1 Jan-
30 Sep, 30 Sep, 31 Dec,
2015 2014 2014
Cash flows from operating
activities:
Profit before tax 9,164 4,794 6,051
Adjustments 5,307 4,399 6,494
Change in working capital -3,817 -2,697 352
Financial items -608 -357 -486
Tax paid -729 70 67
Net cash from
operating activities 9,317 6,209 12,478
Cash flows from investing
activities:
Purchases of property, plant
and equipment -4,278 -3,335 -4,345
Proceeds from sale of property,
plant and equipment - 696 710
Net cash used in
investing activities -4,278 -2,639 -3,635
Cash flows from financing
activities:
Proceeds from long-term
borrowings 1,000 5,000 5,000
Proceeds from short-term
borrowings - 4,000 4,000
Payments of long-term
borrowings -2,000 -2,000 -3,000
Payments of short-term
borrowings - -4,024 -4,024
Payments of finance
lease liabilities -475 -437 -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 -9,067 1,230 50
Increase (+) / decrease (-) in
cash and cash equivalents -4,028 4,799 8,893
Exchange rate changes 530 266 329
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 10,938 10,279 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 7,044 7,044
Other com-
prehensive
income,
net of tax:
Cash flow
hedges -4 -4
Translation
differences 616 616
Total com-
prehensive
income for
the period 612 7,044 7,657
Share-based
payments 155 155
Dividend
distribution -7,592 -7,592
Balance at
30 Sep, 2015 11,821 20,045 753 3,248 27,980 63,847
Balance at
31 Dec, 2013 11,821 20,045 3 1,756 23,647 57,273
Profit for
the period 3,749 3,749
Other com-
prehensive
income,
net of tax:
Cash flow
hedges 17 17
Translation
differences 566 566
Total com-
prehensive
income for
the period 584 3,749 4,333
Share issue 750 750
Share-based
payments 221 221
Acquisition of
non-
controlling
interest -357 -357
Balance at
30 Sep, 2014 11,821 20,045 753 2,339 27,260 62,219
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 Sep, 30 Sep, 31 Dec,
2015 2014 2014
Carrying amount at the beginning
of the period 42,538 45,295 45,295
Additions 4,548 2,465 3,627
Disposals - -501 -520
Depreciation -4,613 -4,678 -6,257
Exchange differences 240 283 393
Carrying amount at the end of
the period 42,712 42,864 42,538
COMMITMENTS AND CONTINGENCIES
1,000 euro 30 Sep, 30 Sep, 31 Dec,
2015 2014 2014
Loans, secured with collaterals 6,000 8,000 7,000
Collaterals 15,110 17,128 15,110
Off-balance sheet
lease commitments 285 308 308
Capital commitments 7,979 1,902 2,689
Nominal values of
derivative contracts
Currency options, call 1,091 226 1,193
Currency options, put - - -
Currency forward agreements 3,956 1,631 3,979
Electricity derivatives 534 1,270 1,076
Fair values of
derivative contracts
Currency options, call 30 0 6
Currency options, put - - -
Currency forward agreements -9 -77 -85
Electricity derivatives -220 -205 -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 Sep, 2015 30 Sep, 2014
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial assets
Derivative financial
instruments - 60 - 13 0 -
Financial liabilities
Derivative financial
instruments 220 39 - 218 77 -
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 Sep, 30 Sep, 31 Dec,
2015 2014 2014
Net sales 64,500 55,425 74,104
Change in net sales compared to
the previous year's period, % 16.4 7.2 8.2
Export and foreign operations
share of net sales, % 91.4 91.2 90.7
Operating profit before
depreciation (EBITDA) 14,266 9,745 12,985
% of net sales 22.1 17.6 17.5
Operating profit 9,378 4,822 6,401
% of net sales 14.5 8.7 8.6
Profit before tax 9,164 4,794 6,051
% of net sales 14.2 8.6 8.2
Return on equity, % 14.7 8.4 8.0
Return on investment, % 16.3 9.1 8.7
Non-interest-bearing liabilities 14,586 12,129 13,710
Net interest-bearing liabilities 959 4,174 -1,110
Net gearing ratio, % 1.5 6.7 -1.7
Equity ratio, % 70.9 70.6 70.5
Capital expenditure 4,548 2,465 3,627
% of net sales 7.1 4.4 4.9
Depreciation 4,888 4,923 6,584
Research and development
expenditure 1,889 1,801 2,472
% of net sales 2.9 3.2 3.3
Average number of personnel
during the period 397 371 370
Personnel at the end of the
period 384 363 367
KEY FIGURES PER SHARE
Euro 30 Sep, 30 Sep, 31 Dec,
2015 2014 2014
Basic earnings per share 0.42 0.22 0.29
Diluted earnings per share 0.42 0.22 0.29
Equity per share 3.78 3.69 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 6.34 4.67 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 7.08 4.95 4.83
Market capitalisation at the
end of the period, 1,000 euro 122,396 85,573 83,499
Trading volume (1 Jan-)
Trading volume,
transactions, 1,000 pcs 4,231 2,784 3,778
In relation to weighted
average number of shares, % 24.5 16.1 21.9
Trading volume, 1,000 euro 26,814 13,048 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 20,820 22,068 21,612
Compared to previous quarter % -5.7 2.1 15.7
Compared to corresponding
period last year, % 7.8 18.0 24.2
Operating profit 3,540 2,914 2,923
% of net sales 17.0 13.2 13.5
Profit before tax 3,477 2,906 2,781
% of net sales 16.7 13.2 12.9
Net cash flow generated from:
Operating activities 4,761 3,660 896
Investing activities -1,913 -625 -1,740
Financing activities -1,159 -2,687 -5,221
Increase/decrease in cash
and cash equivalents 1,688 348 -6,064
Personnel at the end of the period 384 426 375
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 the = Number of shares at 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 future estimates and forecasts in this interim report are based on the
company management's current knowledge. Actual events and results may differ
from the estimates presented here.
INTERIM REPORT BRIEFING
A briefing for investors, analysts and media will take place today, Thursday 22
October at 8.30 a.m. in Helsinki Stock Exchange building, Fabianinkatu 14,
Helsinki (2nd floor, entrance via Nasdaq's reception). The result will be
presented by President Kai Seikku.
OKMETIC OYJ
Board of directors
For further information, please contact:
President Kai Seikku, Okmetic Oyj,
tel. +358 5028 0232, email: kai.seikku(at)okmetic.com
Senior Vice President, Finance, IT and Communications Juha Jaatinen, Okmetic
Oyj,
tel. +358 9 5028 0286, email: juha.jaatinen(at)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.
Okmetic Q3 2015 Interim Report:
http://hugin.info/132025/R/1960509/714701.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Okmetic Oyj via GlobeNewswire
[HUG#1960509]
Unternehmensinformation / Kurzprofil:
Datum: 22.10.2015 - 07:00 Uhr
Sprache: Deutsch
News-ID 428647
Anzahl Zeichen: 53551
contact information:
Town:
Vantaa
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"Okmetic Oyj Interim report 1 January - 30 September 2015: Good profitability and cash flow in slowing market"
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Okmetic Oyj (Nachricht senden)
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