Annual general meeting 7 April President s review Kai Seikku

Transcription

1 Annual general meeting 7 April 2016 President s review Kai Seikku

2 Agenda Okmetic in brief Markets Financial statements 2015

3 Tailored silicon wafers for demanding customers Okmetic supplies customer-tailored silicon wafers for sensor and semiconductor industries (customer segments in financial year 2015). Key figures 2015 Net sales Operating profit* 84.5 million euro 13.0% of net sales Okmetic s customer segments are Sensor wafers and Discrete&Analog wafers (D&A wafers) as of Personnel 394 * Without non-recurring restructuring costs Okmetic is leading sensor wafer manufacturer and technology partner.

4 Global operations Finland: HQ, a plant, sales, technical support North America: Sales office, technical support, sales representatives Asia: Sales offices in Japan and Hong Kong, sales representatives in China, Korea, Malaysia, Singapore and Taiwan. Technical support in Japan and China.

5 North America the largest market area due to exchange rate development Value of deliveries per market area 2015 Europe 33% North America 49% Asia 21%

6 In the future two segments equal in size Value of deliveries 2015 (old segments) Value of deliveries 2015 (new segments) Sensor wafers 65% Semiconductor wafers 35% Sensor wafers 51% D&A wafers 49%

7 Supply chain Vantaa plant, Finland Crystal growing Sensor wafers Demanding D&A wafers Further wafer processing (SOI) Allen plant, Texas, USA Further wafer processing (EPI) Sold on 31 March 2016 Fab lite capacity, Japan and China

8 Okmetic s product offering takes advantage of technology growth trends Technology advancing on a broad front provides a growth market well into the foreseeable future 25-year focus on sensor wafers and other high-performance wafer technologies sets Okmetic apart Wafer technologies developed for sensor industry ripe for adoption in other applications

9 Markets

10 Okmetic is early in the long electronics value chain E.g. automotive, consumer electronics, IoT, healthcare, process industry Polycrystalline supplier Silicon wafer supplier 7 BUSD (Foundry) Semiconductor producer 341 BUSD (System supplier) End product producer 1.49 Trillion USD

11 The growth of MEMS market important for the sensor industry is estimated to continue Source: IHS, Q3 2015

12 Silicon wafer market s performance weak in terms of value Wafer deliveries MUSD MSI Surface area (million square inches)

13 Due to semiconductor industry s stagnant development in the 2010 s Source: Semiconductor Industry Association

14 Okmetic s success is based on selected segments and products Estimate on market value 2016, 341 BUSD Sensors Okmetic operates in three areas of the whole semiconductor market: Discrete semiconductors Sensors Analog circuits Micro circuits Logic circuits Memory circuits Optoelectronics Market value 2016 (estimate): 9 BUSD Discrete semiconductors Market value 2016 (estimate): 19 BUSD Analog circuits Market value 2016 (estimate): 47 BUSD Source: World Semiconductor Trade Statistics WSTS, Q4 2015

15 Financial statements 2015

16 2015 in brief Net sales (84.5 million euro) reached a record high, driven by commercial success and positive exchange rate movements. Okmetic was able to increase the average prices of its own silicon wafers by 10 percent. Operating profit without non-recurring costs improved by over 70 percent to 11.0 million euro. Net cash flow from operating activities (14.7 million euro) was very strong. The semiconductor market and the demand for silicon wafers decelerated notably in the second half of the year. Volumes of Okmetic's deliveries remained high up until November when customers began to reduce their inventory levels.

17 Key figures ,000 euro Change Y/Y, % Net sales 84,540 74, % Operating profit without nonrecurring restructuring costs 10,972 6, % % of net sales 13.0% 8.6% Operating profit 7,718 6, % % of net sales 9.1 % 8.6% Profit for the period 4,832 4, % Net cash flow from operating activities 14,716 12, %

18 Capital structure and return on investment Equity ratio, % Net gearing ratio, % ROI, % ROE, % CAPEX, 1,000 euro 10,834 3,627 7,648 % of net sales Earnings per share, euro Equity per share, euro

19 Consolidated balance sheet: Assets 1,000 euro 31 Dec Dec 2014 Assets Non-current assets Property, plant and equipment 46,532 42,538 Intangible assets Deferred tax assets Other receivables Total non-current assets 47,025 43,990 Current assets Inventories 17,478 17,890 Trade and other receivables 16,156 14,347 Cash and cash equivalents 9,468 14,436 Total current assets 43,102 46,672 Total assets 90,127 90,662

20 Consolidated balance sheet: Equity and liabilities 1,000 euro 31 Dec Dec 2014 Equity Equity attributable to equity holders of the parent company Share capital 11,821 11,821 Share premium 20,045 20,045 Reserve for invested unrestricted equity Hedge reserve Translation differences 3,514 2,754 Retained earnings 16,741 23,539 Profit for the period 4,832 4,832 Total equity 57,608 63,627 1,000 euro 31 Dec Dec 2014 Liabilities Non-current liabilities Borrowings 9,001 10,706 Deferred tax liabilities 2,970 2,692 Other liabilities ,004 13,561 Current liabilities Borrowings 2,750 2,619 Current income tax liabilities 1, Provisions Trade and other payables 15,549 10,383 20,514 13,475 Total equity and liabilities 32,519 27,036 Total equity and liabilities 90,127 90,662

21 Million euro Net sales, operating profit and net cash flow from operating activities in Net sales Operating profit Net cash flow from operating activities 5 0 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015

22 Euro 2.75 euro per share distributed for shareholders in 2010 s* 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00-0,10 Additional dividend of 0.15 euro Additional dividend of 0.19 euro Dividend of 0.25 euro paid in December 2015 Dividend of 0.15 euro paid in April 2015 Dividend of 0.30 euro paid in Capital January 2015 repayment of 0.07 euro The board of directors proposes to the annual general meeting that a dividend of 0.65 euro per share will be paid for the financial year 2015 (total of 11.0 million euro). Osakekohtainen Basic earnings per tulos share (laimentamaton) Osingot Dividends ja pääoman and capital palautukset repayments * Dividends, capital repayments and purchases of own shares

23 Financial guidance for 2016 In 2016, the net sales are estimated to decline from the level of 2015 and operating profit without non-recurring items to exceed the level of Guidance for net sales was changed due to the sale of the Allen production facility announced on 1 April 2016.

24 2010 s has been a time of strong development Long-term strategy enhanced and implemented faster Significant investments in sensor wafer business and organic growth with new products Multiplying of investments in the 2010 s The average silicon wafer price premium up from 25% to 102% in six years Significant structural changes Phasing out of solar business as a result of plummeted price level Phasing out of epi business for good due to weakened outlook and overcapacity in the field Vantaan plant expansion, start-up of 200 mm volume production and building of separate SOI production facility

25 The company has been succesful in demanding circumstances Okmetic s share among top performers in the stock exchange If the annual general meeting decides to accept the proposed dividend, 2.75 euro per share has been distributed as dividends, capital repayments and purchases of own shares If the Tender Offer is accepted, annual TSR (Total Shareholder Return) for the ongoing decade is around 25%, which would be top 5 level in OMXH The company has swam upstream: net sales of silicon wafer industry has declined around 30% in the same time period. The industry is facing challenging years also at the end of the decade.

26 Thank you!