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OKMETIC'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2014: STRONG THIRD QUARTER DUE TO SOLID DEMAND FOR SENSOR WAFERS(Thomson Reuters ONE Via Acquire Media NewsEdge) OKMETIC OYJ STOCK EXCHANGE RELEASE 23 OCTOBER 2014 AT 8.00 A.M. INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2014: STRONG THIRD QUARTER DUE TO SOLID DEMAND FOR SENSOR WAFERS Unless otherwise stated, figures in parenthesis refer to the corresponding period in the previous year. JULY-SEPTEMBER IN BRIEF: - Net sales amounted to 19.3 (18.2) million euro, up 5.9%. - Silicon wafer shipments amounted to 17.5 (17.8) million euro, down 1.3%. - Operating profit was 2.8 (1.4) million euro, corresponding to 14.3% (7.8%) of net sales. - Profit for the period was 2.2 (0.8) million euro. - Basic earnings per share was 0.13 (0.05) euro. - Net cash flow from operations amounted to 3.6 (3.5) million euro. JANUARY-SEPTEMBER IN BRIEF: - Net sales amounted to 55.4 (51.7) million euro, up 7.2%. - Silicon wafer shipments amounted to 52.9 (50.2) million euro, up 5.4%. - Operating profit was 4.8 (4.8) million euro, corresponding to 8.7% (9.2%) of net sales. - Profit for the period was 3.7 (3.4) million euro. - Basic earnings per share was 0.22 (0.20) euro. - Net cash flow from operations amounted to 6.2 (4.8) million euro. SHORT-TERM OUTLOOK The demand for semiconductors is expected to grow in 2014. Also for the silicon wafer market, growth is expected in 2014. Following the growth in shipment volumes, the long decline in the value of the silicon wafer market is anticipated to end this year. The demand for Okmetic's demanding sensor wafers is estimated to grow year-on- year in 2014, and the price level is expected to remain fairly stable. Prices of semiconductor wafers are being hit by the weakened Japanese yen, as the Japanese manufacturers hold a significant stake of the silicon wafer market. However, the demand is expected to pick up somewhat in 2014 compared to 2013. Other business sales are not expected to materially differ from the low level of year 2013. In the fourth quarter, the demand for silicon wafers is expected to be lower than in the second and third quarters of the year, in accordance with normal seasonal fluctuation. The company retains its existing guidance, according to which net sales and operating profit in 2014 are estimated to exceed the level of year 2013. PRESIDENT KAI SEIKKU: "The strong sales trend of strategically important sensor wafers continued in January-September, as the shipments grew by 12.3 percent from the comparison period. The demand for sensor wafers was particularly strong in Europe. Sales grew in all of the company's main market areas excluding Japan. Sensor wafer development has been in line with the long-term growth target as redefined in the Capital Markets Day at the end of September. In contrast, the demand for semiconductor wafers has clearly been weaker in 2014 in relation to the corresponding period last year. The third quarter is traditionally the peak demand season for Okmetic's products. Operating profit, 2.8 million euro, strengthened notably in July- September both quarter-on-quarter (1.1 million euro in Q2 2014) and year-on-year (1.4 million euro in Q3 2013). The increase in profitability was driven by the sales of high value added products that is growing in line with Okmetic's strategy. In the third quarter, also the strengthening of the US dollar as well as non-operational income in the United States (0.3 million euro) improved operating profit. Operating profit in the third quarter of last year was burdened by non-operational items (0.6 million euro). When assessing profitability of the business it is worth noticing that depreciation grew by 0.7 million euro in January-September. Operating profit before depreciation was 9.7 (9.0) million euro in January-September. Net cash flow from operating activities, 6.2 million euro, was at a good level in January-September considering the extra polysilicon inventory tied up in working capital. The company's working capital is up as a result of a higher raw material inventory, which has grown due to the polysilicon purchasing contracts. With the growing of solar crystals based on own raw material now ended, this inventory is being released. A reduction in working capital is not expected until the expiration of the long-term contracts at the end of 2015. The ongoing annual contract negotiations as well as new customerships and customer qualifications indicate a continuing positive trend in sensor wafers for next year. Meanwhile, in semiconductor wafers, prices will remain under pressure." 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 2014 2013 2014 2013 2013 Net sales 19,320 18,242 55,425 51,680 68,516 Operating profit before depreciation (EBITDA) 4,420 2,921 9,745 9,024 10,905 Operating profit 2,757 1,423 4,822 4,768 5,031 % of net sales 14.3 7.8 8.7 9.2 7.3 Profit for the period 2,219 816 3,749 3,395 3,842 Basic earnings per share, euro 0.13 0.05 0.22 0.20 0.23 Net cash flow from operating activities 3,644 3,481 6,209 4,811 9,726 Net interest- bearing liabilities 4,174 6,196 4,174 6,196 6,530 Equity ratio, % 70.6 70.5 70.6 70.5 68.2 Average number of personnel during the period 379 369 371 366 363 MARKETS Customer industries sensor and semiconductor industry Sensor industry The increasing use of micro sensors in many consumer electronics and automotive industry products has accelerated sensor sales growth. In 2014, the sale value of sensor industry is estimated to grow by 6-11 percent. In terms of volume, sensor shipments are likely to clearly reach a new record in 2014, too. (IHS, Yole) Semiconductor industry In the third quarter of 2014, the sales of the global semiconductor industry in US dollars continued to grow. In January to August, the sales grew by 10 percent from the corresponding period last year (SIA). For the whole year 2014, the growth estimates have settled between 6.5 and 9.8 percent (WSTS, Gartner, Cowan). Almost all product areas contributed to continued semiconductor sales growth, especially tablet computers (SIA, Gartner). Silicon wafer market According to the report of 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 calculated in square inches grew by 10 percent year-on-year in the first half of 2014. For the whole year 2014, SEMI forecasts 7 percent growth, which would break the record in the yearly volume of silicon wafer shipments. Following the growth in shipment volumes, the long decline in the value of the silicon wafer market in US dollars is expected to end this year. The key customer areas for Okmetic in the silicon wafer market In line with its strategy, Okmetic seeks niches in the silicon wafer market, where growth exceeds market average and in which the company has special expertise. Okmetic supplies primarily 150mm and 200mm wafers. The sensor/MEMS industry is a key growth area for Okmetic. MEMS market grows as portable consumer products, automotive electronics, and industrial process control increase. In the semiconductor market, Okmetic's growth areas include discrete and power semiconductors. In these wafer markets, areas for growth include, among others, components used in the production of renewable energy, increasing automotive electronics, portable consumer products, as well as different solutions related to power supply and efficiency improvement. SALES In the third quarter, net sales grew by 5.9 percent year-on-year and amounted to 19.3 (18.2) million euro. In January-September, net sales grew by 7.2 percent from the comparison period and amounted to 55.4 (51.7) million euro. Sensor wafer shipments increased whereas semiconductor wafer shipments diminished from last year in both periods. There have been no significant changes in the market positions of Okmetic in the product groups important to the company. Sales per customer area 1 Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan- 30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec, 2014 2013 2014 2013 2013 Sensor wafers 61% 59% 63% 59% 59% Semiconductor wafers 34% 38% 34% 38% 37% Other business 5% 3% 3% 3% 4% The value of sensor wafer shipments grew by 12.3 percent year-on-year in January-September. In the same period, the value of semiconductor wafer shipments declined by 5.3 percent. In the third quarter, semiconductor wafer shipments were, however, bigger than in the first and second quarters. The value of Other business shipments amounted to 1.9 (1.7) million euro in January-September. Sales per market area 1 Jul- 1 Jul- 1 Jan- 1 Jan- 1 Jan- 30 Sep, 30 Sep, 30 Sep, 30 Sep, 31 Dec, 2014 2013 2014 2013 2013 North America 37% 43% 38% 41% 42% Europe 42% 41% 41% 40% 40% Asia 21% 16% 21% 19% 18% Regionally, most sales originated in Europe and North America. PROFITABILITY July-September Okmetic's operating profit amounted to 2.8 (1.4) million euro, i.e. 14.3 (7.8) percent of net sales in July-September. The operating profit was favourably impacted by the strengthening of the US dollar, the sale of a redundant lot at the Allen production site, 0.2 million euro, as well as insurance claims paid out to the Allen plant, 0.1 million euro. In the comparison period, operating profit was reduced by non-operational items (0.6 million euro). Profit for the period amounted to 2.2 (0.8) million euro. Basic earnings per share was 0.13 (0.05) euro. Diluted earnings per share was 0.13 (0.05) euro. January-September In January-September, Okmetic's operating profit amounted to 4.8 (4.8) million euro, i.e. 8.7 (9.2) percent of net sales. Profit for the period amounted to 3.7 (3.4) million euro. Basic earnings per share was 0.22 (0.20) euro. Diluted earnings per share was 0.22 (0.20) euro. FINANCING The company's financial position is solid. In January-September, net cash flow from operations amounted to 6.2 (4.8) million euro. The changes in working capital tied up in operations weakened cash flow from operations by 2.7 (5.0) million euro. On 30 September 2014, the company's interest-bearing liabilities amounted to 14.5 (11.8) million euro. Okmetic issued a multi-issuer bond in June, due to which interest-bearing liabilities increased by five million euro. The maturity of the multi-issuer bond is five years. The financing is used for investments and general corporate purposes. At the end of the reporting period, cash and cash equivalents amounted to 10.3 (5.6) million euro. On 30 September 2014, the company's net debt was 4.2 million euro (on 30 September 2013, net debt amounted to 6.2 million euro). The group has ensured liquidity with committed credit facilities of 6.0 million euro. On 30 September 2014, the committed credit facilities were fully unused (as well as on 30 September 2013). Return on equity amounted to 8.4 (7.4) percent. The company's equity ratio was 70.6 (70.5) percent. Equity per share was 3.69 (3.67) euro. INVESTMENTS In January-September, Okmetic's capital expenditure amounted to 2.5 (5.8) million euro. The investments were mainly for increasing capacity of 200mm wafers at the Vantaa plant. PRODUCT DEVELOPMENT The company expensed 1.8 (1.9) million euro in product development projects in January-September, corresponding to 3.2 (3.6) percent of net sales. Product development costs have not been capitalised. Emphasis in product development was on engineered products. Focus areas include broadening the SOI product family, improving capability in 200mm wafers as well as developing crystal growing to enhance capability in high and low resistivity products. PERSONNEL On average, Okmetic employed 371 (366) people in January-September. At the end of the period, Okmetic had 363 (356) employees, of which 318 worked in Finland, 39 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 business risks and uncertainties. Okmetic's business is confronted by risks, which may arise from the company's operations or changes in its operating environment. Risks that, if materialized, 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 the end of 2015. Since the price level of the solar cell market has dropped, the validity of long-term polysilicon purchase contracts typical of the industry may cause a price risk. Okmetic's share of the global silicon wafer market is around one percent, and the market prices have a notable effect on the price development of Okmetic's products. The company has considerable pricing power only in 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, the company remains exposed to exchange rate fluctuations. Substantial amounts 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 2014, Okmetic Oyj's paid-up share capital, as entered in the Finnish Trade Register, was 11,821,250 euro. The number of shares was 17,287,500. The shares have no nominal value attached. Each share entitles to one vote at general meetings. The company has one class of shares. The company's shares are included in the Finnish book-entry system. Major shareholders on 30 September 2014 Shares, Share, pcs % Ilmarinen Mutual Pension Insurance Company 1,004,985 5.8 Oy Ingman Finance Ab 870,000 5.0 Mandatum Life Insurance Company Limited 800,000 4.6 The State Pension Fund 600,000 3.5 Nordea Nordic Small Cap Fund 528,810 3.1 Varma Mutual Pension Insurance Company 477,175 2.8 Okmetic Oyj *) 416,763 2.4 Etra-Invest Oy Ab 400,000 2.3 Investment Fund Taaleritehdas Arvo Markka Osake 300,100 1.7 Nordea Finland Small Cap Fund 250,095 1.5 Foreign investors and nominee accounts held by custodian banks 2,876,684 16.6 Other 8,762,888 50.7 Total 17,287,500 100.0 *)Of Okmetic Oyj's shares, 400,000 pcs are owned through Okmetic Management Oy. SHARE PRICE PERFORMANCE AND TRADING A total of 2.8 (2.2) million shares were traded between 1 January and 30 September 2014, representing 16.1 (12.9) percent of the weighted average of share total of 17.3 (17.3) million during the period. The lowest quotation during the period was 4.38 (4.25) euro, and the highest 5.25 (5.55) euro, with the average trading price being 4.67 (4.78) euro. The closing quotation for the period was 4.95 (5.31) euro. At the end of the period, the market capitalisation amounted to 85.6 (91.8) million euro. OWN SHARES AND DIRECTED SHARE ISSUES In a directed share issue on 16 January 2014, Okmetic Oyj transferred a total of 150,000 own shares held by the company to President Kai Seikku (140,000 shares) and Deputy to the President of that time, Mikko Montonen (10,000 shares). Subscription price per share was determined using the average trading price of the company's share weighted by trading volume in NASDAQ OMX Helsinki Oy on 16 January 2014, and was 4.9969 euro. On 13 February 2014, Okmetic Oyj's board of directors announced of its decision to transfer a total of 11,919 own shares held by the company as a part of the company's share-based incentive scheme for the executive management group, of which the company gave a stock exchange release on 12 February 2013. According to the decision of the annual general meeting, Okmetic Oyj transferred a total of 15,441 shares to the board members as payment of the annual remuneration on 9 May 2014. At the end of the reporting period Okmetic held 416 763 (194 123) own shares, of which 400 000 shares through Okmetic Management Oy. The number of own shares corresponds to approximately 2.4 (1.1) percent of all Okmetic shares and votes. OTHER EVENTS IN THE INTERIM PERIOD On 15 January 2014, the board of directors decided to dissolve the ownership arrangement of Okmetic Management Oy, owned by President Kai Seikku and Deputy to the President of that time, Mikko Montonen, with an arrangement in which Okmetic Oyj acquired the entire share capital of Okmetic Management Oy. Also 400,000 shares of Okmetic Oyj were transferred to the group via Okmetic Management Oy, as well as a loan receivable of Okmetic Oyj from Okmetic Management Oy. The value of the arrangement for the part of shares owned by Okmetic Management Oy was determined using the average trading price weighted by trading volume of the company's share in NASDAQ OMX Helsinki Oy on 16 January 2014, 4.9969 euro. There were no shareholders of Okmetic Management Oy in the board of directors of Okmetic Oyj. Mikko Montonen, Executive Vice President, Customers and Markets, Deputy to the President, resigned from Okmetic on 26 February 2014 to assume a new position with another company. Mr. Montonen's management responsibilities at Okmetic ended on 6 April 2014. Anna-Riikka Vuorikari-Antikainen, then Senior Vice President, Products, was appointed Senior Vice President, Customers and Markets from 7 April 2014. Ms. Vuorikari-Antikainen is also responsible for customer support. Atte Haapalinna, then Senior Vice President, Customer Support, was appointed Senior Vice President, Products from 7 April 2014. In connection with Okmetic's Capital Markets Day on 26 September 2014, the company modified its long-term targets slightly as: - Organic growth of sensor wafer business at 10 percent per annum or more - Operating profit to account for 10 percent of net sales or more This implies no explicit growth target for sales of other type of wafers, or Other business. CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 30 SEPTEMBER 2014 (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 2013 except for the effect of changes required by the adoption of certain new or revised standards and interpretations as of 1 January 2014, which have been described in financial statements 2013. 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, 2014 2013 2014 2013 2013 Net sales 19,320 18,242 55,425 51,680 68,516 Cost of sales -14,942 -14,594 -44,098 -40,536 -54,918 Gross profit 4,378 3,648 11,327 11,144 13,598 Other income and expenses -1,621 -2,225 -6,505 -6,376 -8,567 Operating profit 2,757 1,423 4,822 4,768 5,031 Financial income and expenses 49 -143 -28 -399 -630 Profit before tax 2,806 1,280 4,794 4,369 4,401 Income tax -587 -464 -1,045 -974 -559 Profit for the period 2,219 816 3,749 3,395 3,842 Other comprehensive income: Items that may be reclassified to profit or loss in subsequent periods Cash flow hedges 16 100 17 -17 -58 Translation differences 557 -323 566 -27 -60 Other comprehensive income for the period, net of tax 573 -224 584 -44 -118 Total comprehensive income for the period 2,792 591 4,333 3,351 3,724 Profit for the period attributable to: Equity holders of the parent company 2,219 816 3,749 3,395 3,842 Total comprehensive income attributable to: Equity holders of the parent company 2,792 591 4,333 3,351 3,724 Basic earnings per share, euro 0.13 0.05 0.22 0.20 0.23 Diluted earnings per share, euro 0.13 0.05 0.22 0.20 0.22 CONDENSED CONSOLIDATED BALANCE SHEET 1,000 euro 30 Sep, 30 Sep, 31 Dec, 2014 2013 2013 Assets Non-current assets Property, plant and equipment 42,864 45,038 45,295 Intangible assets 740 888 897 Other receivables 732 2,020 1,419 Total non-current assets 44,335 47,945 47,611 Current assets Inventories 17,748 17,893 16,634 Receivables 16,440 15,432 14,572 Cash and cash equivalents 10,279 5,617 5,214 Total current assets 44,467 38,941 36,420 Total assets 88,802 86,886 84,031 Equity and liabilities Equity Equity attributable to equity holders of the parent company Share capital 11,821 11,821 11,821 Other equity 50,398 49,398 45,451 Total equity 62,219 61,219 57,273 Liabilities Non-current liabilities 13,407 12,804 10,533 Current liabilities 13,175 12,863 16,226 Total liabilities 26,583 25,667 26,759 Total equity and liabilities 88,802 86,886 84,031 CONDENSED CONSOLIDATED CASH FLOW STATEMENT 1,000 euro 1 Jan- 1 Jan- 1 Jan- 30 Sep, 30 Sep, 31 Dec, 2014 2013 2013 Cash flows from operating activities: Profit before tax 4,794 4,369 4,401 Adjustments 4,399 4,591 6,566 Change in working capital -2,697 -5,000 -2,091 Financial items -357 -121 -126 Tax paid 70 972 976 Net cash from operating activities 6,209 4,811 9,726 Cash flows from investing activities: Purchases of property, plant and equipment -3,335 -7,784 -9,089 Proceeds from sale of property, plant and equipment 696 - - Net cash used in investing activities -2,639 -7,784 -9,089 Cash flows from financing activities: Proceeds from long- term borrowings 5,000 10,000 10,000 Proceeds of short-term borrowings 4,000 24 1,024 Payments of long-term borrowings -2,000 -1,000 -1,000 Payments of short-term borrowings -4,024 -3,043 -4,043 Payments of finance lease liabilities -437 -349 -478 Other items 36 10 10 Dividends paid -578 -4,170 -6,763 Capital repayment - - -1,169 Share issue 750 - - Acquisition of Okmetic Management Oy's share capital -1,516 - - Net cash used in financing activities 1,230 1,473 -2,419 Increase (+) / decrease (-) in cash and cash equivalents 4,799 -1,500 -1,782 Exchange rate changes 266 -171 -292 Cash and cash equivalents at the beginning of the period 5,214 7,288 7,288 Cash and cash equivalents at the end of the period 10,279 5,617 5,214 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Equity attributable to equity holders of parent company Share Share Reserve Other Retained Total capital pre-mium for invested reserves earnings un-restricted 1) 1,000 euro equity 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 Trans- lation differ- ences 566 566 Total com- prehensive income for the period 584 3,749 4,333 Share issue 750 750 Share- based payments 221 221 Acquisi- tion of non- control- ling interest -357 -357 Balance at 30 Sep, 2014 11,821 20,045 753 2,339 27,260 62,219 Balance at 31 Dec, 2012 11,821 20,045 1,200 1,874 26,919 61,860 Profit for the period 3,395 3,395 Other com- prehensive income, net of tax: Cash flow hedges -17 -17 Trans- lation differ- ences -27 -27 Total com- prehensive income for the period -44 3,395 3,351 Share- based payments 178 178 Dividends distribut- ed -4,170 -4,170 Balance at 30 Sep, 2013 11,821 20,045 1,200 1,830 26,323 61,219 1)"Other reserves" contains hedge reserve and translation differences. Acquisition of shares of Okmetic Management Oy is treated as acquisition of non- controlling interest. CHANGES IN PROPERTY, PLANT AND EQUIPMENT 1,000 euro 1 Jan- 1 Jan- 1 Jan- 30 Sep, 30 Sep, 31 Dec, 2014 2013 2013 Carrying amount at the beginning of the period 45,295 43,433 43,433 Additions 2,465 5,777 7,648 Disposals -501 -9 -9 Depreciation -4,678 -4,080 -5,623 Exchange differences 283 -83 -154 Carrying amount at the end of the period 42,864 45,038 45,295 COMMITMENTS AND CONTINGENCIES 1,000 euro 30 Sep, 30 Sep, 31 Dec, 2014 2013 2013 Loans secured with collaterals 8,000 10,000 10,000 Collaterals 17,128 17,128 17,128 Off-balance sheet lease commitments 308 380 395 Capital commitments 1,902 2,112 1,910 Nominal values of derivative contracts Currency options, call 226 - 948 Currency options, put - - 182 Currency forward agreements 1,631 903 1,144 Electricity derivatives 1,270 2,117 1,847 Fair values of derivative contracts Currency options, call 0 - 12 Currency options, put - - -1 Currency forward agreements -77 15 20 Electricity derivatives -205 -173 -350 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, 2014 30 Sep, 2013 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Derivative financial instruments - 13 - - 38 - Financial liabilities Derivative financial instruments - 296 - - 196 - Fair value estimation The group's financial instruments that are measured at fair value comprise derivatives used for hedging and held for trading, and they are classified on hierarchy level 2. Fair values of level 2 instruments are based on other data than quoted prices in active markets, but on data from which the asset is observable, either directly (i.e. price) or indirectly (i.e. derived from the prices). Fair value determination The fair values of currency derivatives are determined by using mark-to-market method at the reporting date. The fair values of electricity derivatives are determined on the basis of market quotations and contract prices of the instruments at the reporting date. KEY FIGURES SHOWING FINANCIAL PERFORMANCE 1,000 euro 1 Jan- 1 Jan- 1 Jan- 30 Sep, 30 Sep, 31 Dec, 2014 2013 2013 Net sales 55,425 51,680 68,516 Change in net sales compared to the previous year's period, % 7.2 -17.2 -17.5 Export and foreign operations share of net sales, % 91.2 91.2 91.8 Operating profit before depreciation (EBITDA) 9,745 9,024 10,905 % of net sales 17.6 17.5 15.9 Operating profit 4,822 4,768 5,031 % of net sales 8.7 9.2 7.3 Profit before tax 4,794 4,369 4,401 % of net sales 8.6 8.5 6.4 Return on equity, % 8.4 7.4 6.4 Return on investment, % 9.1 8.6 6.7 Non-interest-bearing liabilities 12,129 13,855 15,014 Net interest-bearing liabilities 4,174 6,196 6,530 Net gearing ratio, % 6.7 10.1 11.4 Equity ratio, % 70.6 70.5 68.2 Capital expenditure 2,465 5,777 7,648 % of net sales 4.4 11.2 11.2 Depreciation 4,923 4,256 5,874 Research and development expenditure 1,801 1,876 2,779 % of net sales 3.2 3.6 4.1 Average number of personnel during the period 371 366 363 Personnel at the end of the period 363 356 355 KEY FIGURES PER SHARE When calculating equity per share, Okmetic's own shares and Okmetic shares owned by Okmetic Management Oy are deducted from the total number of shares. Euro 30 Sep, 30 Sep, 31 Dec, 2014 2013 2013 Basic earnings per share 0.22 0.20 0.23 Diluted earnings per share 0.22 0.20 0.22 Equity per share 3.69 3.67 3.43 Capital repayment per share - - 0.07 Dividend per share - - - Dividends/earnings, % - - - Effective dividend yield, % - - - Price/earnings(P/E) - - 20.9 Share performance (1.1.-) Average trading price 4.67 4.78 4.92 Lowest trading price 4.38 4.25 4.25 Highest trading price 5.25 5.55 5.66 Trading price at the end of the period 4.95 5.31 4.82 Market capitalisation at the end of the period, 1,000 euro 85,573 91,797 83,326 Trading volume, transactions, 1,000 pcs 2,784 2,223 3,382 In relation to weighted average number of shares, % 16.1 12.9 19.6 Trading volume, 1,000 euro 13,048 10,620 16,647 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 QUARTERLY KEY FIGURES 1,000 euro 10-12/ 7-9/ 4-6/ 1-3/ 2014 2014 2014 2014 Net sales 19,320 18,700 17,405 Compared to previous quarter, % 3.3 7.4 3.4 Compared to corresponding period last year, % 5.9 9.8 6.1 Operating profit 2,757 1,137 928 % of net sales 14.3 6.1 5.3 Profit before tax 2,806 1,096 892 % of net sales 14.5 5.9 5.1 Net cash flow generated from: Operating activities 3,644 1,932 632 Investing activities 261 -1,263 -1,637 Financing activities -3,157 4,859 -472 Increase/decrease in cash and cash equivalents 748 5,528 -1,477 Personnel at the end of the period 363 393 354 1,000 euro 10-12/ 7-9/ 4-6/ 1-3/ 2013 2013 2013 2013 Net sales 16,837 18,242 17,035 16,403 Compared to previous quarter, % -7.7 7.1 3.9 -20.7 Compared to corresponding period last year, % -18.6 -13.2 -24.2 -13.2 Operating profit 263 1,423 1,971 1,373 % of net sales 1.6 7.8 11.6 8.4 Profit before tax 32 1,280 1,812 1,277 % of net sales 0.2 7.0 10.6 7.8 Net cash flow generated from: Operating activities 4,915 3,481 519 811 Investing activities -1,304 -1,687 -1,966 -4,131 Financing activities -3,892 -1,155 -7,276 9,904 Increase/decrease in cash and cash equivalents -281 639 -8,724 6,585 Personnel at the end of the period 355 356 379 354 DEFINITIONS OF KEY FINANCIAL FIGURES Operating profit before = Operating profit + depreciation depreciation (EBITDA) Return on equity (ROE), % = Profit/loss for the period x 100/ ----------------------------------------- Equity(Average for the period) Return on investment (ROI), % = (Profit/loss before tax + interest and other financial expenses) x 100/ ----------------------------------------- Balance sheet total - non-interest bearing liabilities(average for the period) Equity ratio, % = Equity x 100/ ----------------------------------------- Balance sheet total - advances received Net interest-bearing liabilities = Interest-bearing liabilities - cash and cash equivalents Net gearing ratio, % = (Interest-bearing liabilities - cash and cash equivalents) x 100/ ----------------------------------------- Equity Earnings per share = Profit/loss for the period attributable to equity holders of the parent company/ ----------------------------------------- Adjusted weighted average number of shares in issue during the period Equity per share = Equity attributable to equity holders of the parent company/ ----------------------------------------- Adjusted number of shares at the end of the period Dividend per share = Dividend for the period/ ----------------------------------------- Adjusted number of shares at the end of the period Effective dividend yield, % = Dividend per share x 100/ ----------------------------------------- Trading price at the end of the period Price/earnings ratio (P/E) = Last adjusted trading price at the end of the period/ ----------------------------------------- Earnings per share Average trading price = Total traded amount in euro/ ----------------------------------------- Adjusted number of shares traded during the period Market capitalisation at the end of = Number of shares at the end of the the period period x trading price at the end of the period Trading volume = Number of shares traded during the period/ ----------------------------------------- Weighted average number of shares during the period All figures of the financial tables are rounded, and consequently the sum of individual figures can deviate from the presented sum figure. The future estimates and forecasts in this 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 at Bank Meeting Point, Unioninkatu 20, Helsinki (2nd floor) today Thursday, 23 October 2014 at 8.30 a.m. The result will be presented by President Kai Seikku. Welcome! OKMETIC OYJ Board of directors For further information, please contact: President Kai Seikku, Okmetic Oyj, tel. +358 5028 0232, email: [email protected] Senior Vice President, Finance, IT and Communications Juha Jaatinen, Okmetic Oyj, tel. +358 9 5028 0286, email: [email protected] Distribution: Nasdaq Helsinki Principal media www.okmetic.com OKMETIC IN BRIEF 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 Helsinki under the code OKM1V. For more information on the company, please visit our website at www.okmetic.com. Okmetic interim report Q3 2014: http://hugin.info/132025/R/1864809/654605.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#1864809] |