Okmetic Q4 & 2015 financial results · Okmetic Q4 & 2015 financial results Kai Seikku President 4...

Okmetic Q4 & 2015

financial results

Kai Seikku President 4 February 2016

Strong financial year, net sales on

a record level

Summary

Okmetic’s business in Q4 and January-December 2015

Financial performance overview

Markets

Outlook

/ Kai Seikku / 4 February 2016 2

Summary

• 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.

• In relation to the wind-down of the EPI plant in Allen, Texas, 3.3 million euro was entered as non-recurring restructuring costs for the final quarter.

• Sensor wafer deliveries saw strong growth (18.9 percent) in 2015.

• Semiconductor wafers also showed strong growth (9.6 percent), but, in relative terms, the growth was slower than in sensor wafers.

• 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.


Okmetic’s business in Q4 and

January-December 2015


Q4 2015

• Net sales amounted to 20.0 (18.7) million euro, up 7.3 (10.9) %.

• Sensor wafer deliveries amounted to 11.8 (11.9) million euro, down 0.6 (up 16.8) %.

• Semiconductor wafer deliveries amounted to 7.6 (6.5) million euro, up 17.8 (down 5.4) %.

• Operating profit without non-recurring costs was 1.6 million euro corresponding to 8.0% of net sales.

• Operating profit/loss was -1.7 (1.6) million euro, corresponding to -8.3 (8.5) % of net sales. Operating loss includes non-recurring restructuring costs of 3.3 million euro related to the US-based epi plant wind-down announced on 9 December 2015.

• Profit/loss for the period was -2.2 (1.1) million euro.

• Basic earnings per share was -0.13 (0.06) euro.

• Net cash flow from operations amounted to 5.4 (6.3) million euro.


Full year 2015 performance

• Net sales amounted to 84.5 (74.1) million euro, up 14.1 (8.2) %.

• Sensor wafer deliveries amounted to 54.9 (46.1) million euro, up 18.9 (13.5) %.

• Semiconductor wafer deliveries amounted to 29.6 (27.0) million euro, up 9.6 (down 4.2) %.

• Operating profit without non-recurring costs was 11.0 million euro corresponding to 13.0% of net sales.

• Operating profit was 7.7 (6.4) million euro corresponding to 9.1 (8.6) % of net sales. Operating profit includes non-recurring restructuring costs of 3.3 million euro related to the US-based epi plant wind-down announced on 9 December 2015.

• Profit for the period was 4.8 (4.8) million euro.

• Basic earnings per share was 0.29 (0.29) euro.

• Net cash flow from operations amounted to 14.7 (12.5) million euro.


Sensor wafers account for 65% of deliveries,

North America biggest in sales

7 / Kai Seikku / 4 February 2016

65 %

35 % 33 %

45 %

21 %

1,000 euro 2015 2014

North America 38,366 27,799

Europe 28,275 29,554

Asia

Total

17,817

84,458

15,767

73,120

Value of deliveries per market area Value of deliveries per customer area

1,000 euro 2015 2014

Sensor wafers 54,857 46,119

Semic. wafers

Total

29,601

84,458

27,001

73,120

As of 1 January 2016, Okmetic’s customer segments are Sensor wafers and

Discrete&Analog wafers (D&A wafers).

Q4 2015 figures


1,000 euro Q4/2015 Q4/2014

Change

Y/Y, % Q3/2015

Change

Q/Q, %

Net sales 20,040 18,679 7.3% 20,820 -3.7%

Operating profit without non-

recurring restructuring costs 1,595 1,579 1,0% 3,540 -54,9%

% of net sales 8.0% 8.5% 17.0%

Operating profit -1,660 1,579 -205.1% 3,540 -146.9%

% of net sales -8.3% 8.5% 17.0%

Profit for the period -2,212 1,083 -304.2% 2,665 -183.0%

Net cash flow from operating

activities 5,399 6,270 -13.9% 4,761 13.4%

Full year 2015 figures


1,000 euro 2015 2014

Change

Y/Y, %

Net sales 84,540 74,104 14.1%

Operating profit without non-

recurring restructuring costs

10,972 6,401 71.4%

% of net sales 13.0% 8.6%

Operating profit 7,718 6,401 20.6%

% of net sales 9.1 % 8.6%

Profit for the period 4,832 4,832 0.0%

Net cash flow from operating

activities 14,716 12,478 17.9%

Capital structure and return on investment


2015 2014 2013

Equity ratio, % 64.0 70.5 68.2

Net gearing ratio, % 4.0 -1.7 11.4

ROI, % 10.4 8.7 6.7

ROE, % 14.7 8.0 6.4

CAPEX, 1,000 euro 10,834 3,627 7,648

% of net sales 12.8 4.9 11.2

Earnings per share, euro 0.29 0.29 0.23

Equity per share, euro 3.41 3.77 3.43

Financial performance

overview


Quarterly net sales


0

5

10

15

20

25

1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015

Millio

n e

uro

Value of deliveries per customer area


As of 1 January 2015, Other business is reported under Semiconductor wafer deliveries. This change is due to the considerable diminishing of Other business.

As of 1 January 2016, Okmetic’s customer segments are Sensor wafers and Discrete&Analog wafers (D&A wafers).

0

2

4

6

8

10

12

14

16

18

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Millio

n e

uro

Sensor wafers

Semiconductor wafers

Other business

Operating profit per quarter


0

1

2

3

4

5

1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015

Millio

n e

uro

Q4 2015:

Operating profit without

non-recurring costs

Operating profit

including non-recurring

costs

Net sales, operating profit and net cash flow


0

5

10

15

20

25

1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015

Millio

n e

uro

Net sales

Operating profit

Net cash flow from operating activities

Q4 2015:


non-recurring costs

Operating profit


costs

49,822

63,694 64,652 67,867

54,361

80,907 83,186 83,074

68,516

74,104

84,540

0,580

9,877 7,121 8,619

0,185

10,421 11,817 8,018

5,031 6,401

10,972

0

10

20

30

40

50

60

70

80

90

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Millio

n e

uro

Net sales

Operating profit

Net sales and operating profit


2015:


non-recurring costs

Operating profit


costs 7,718

-0,10

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

2007 2008 2009 2010 2011 2012 2013 2014

eu

ro

Basic earnings per share Dividends and capital repayments

Earnings per share and dividends


Additional

dividend

0.15 euro

Additional

dividend

0.19 euro

Capital

repayment

0.07 euro

Dividend paid in

January 2015,

0.30 euro

Dividend paid

in April 2015,

0.15 euro

Dividend paid

in December

2015, 0.25

euro The board of directors

proposes to the

annual general

meeting that a

dividend of 0.45 euro

per share will be paid

for the financial year

2015 (total of 7.6

million euro).

Markets


Global semiconductor billings 2000-2015


Source:

Semiconductor Industry Association

Quarterly silicon wafer shipments 2000-Q3 2015


Source: SEMI

Market estimates for the near future

• Market growth of the semiconductor industry for the whole year 2015 was approximately one percent compared to the previous year (IC Insights, SIA, VLSI,

WSTS). Growth for 2016 is projected at an average of three percent in terms of value, with sales estimated at around 341 billion US dollars (VLSI, WSTS).

• In 2015, the sales value in the sensor industry is estimated to have grown by slightly below 10 percent, and an annual growth rate of 10 percent is expected for the next few years. In terms of volume, sensor deliveries are likely to clearly rise to a record level in 2016.

• The discrete market is estimated to grow around one percent in 2016 and around four percents in 2017 (WSTS).

• Analog circuits market is estimated to grow around three percents in 2016 and around four percents in 2017 (WSTS).

• An annual growth of 1-3 percent in surface area is estimated for the silicon wafer market for the years 2015-2017 (SEMI).


Outlook


Short-term outlook

• Demand for Okmetic's advanced sensor wafers is expected to

remain on a growth track in 2016.

• The D&A market is anticipated to see moderate growth in 2016, with

different applications for the Internet of Things serving as the major

growth drivers.

• The market slowed in December 2015 and is quieter than usual in

early 2016, particularly due to forecasts of lacklustre smartphone

sales and the ensuing inventory adjustments across the entire value

chain. Demand is expected to pick up again from the second quarter

onwards.


Financial guidance for 2016

• In 2016, net sales and operating profit without non-recurring costs

are estimated to exceed the level of 2015.


Changes as of 1 January

2016


New customer segments to better describe revised

strategy for high-performance wafers


Sensor

wafers

Semi-

conductor

wafers

Sensor

wafers

Discrete

&

Analog

wafers

Old customer segments New customer segments (2016→)

2015:

65% • Focus on high-performance

wafers

• Revised customer segments give

more accurate picture of the field

we operate in as new market

areas have emerged

• Two customer segments with

more even profitability

• New financial targets to cover

the whole business

2015:

35%

~50%

~50%

How have customer segments changed?


Sensor

wafers

Semi-

conductor

wafers

Sensor

wafers

Discrete

&

Analog

wafers

Old customer segments New customer segments (2016→)

• Only wafers for MEMS

and other sensor

applications (e.g.

DSP, MEMS SOI,

SSP used in surface

MEMS)

• Semiconductor wafers

• High resistivity wafers

• HV SOI wafers used

in power applications

• Other business

• Only wafers for MEMS and other sensor

applications (e.g. DSP, MEMS SOI, SSP used in

surface MEMS)

• High resistivity wafers

• HV SOI wafers used in power applications

• Semiconductor wafers

• Other business

2015:

65%

2015:

35%

~50%

~50%

Long-term financial targets revised


Organic growth of sensor wafer business at 10 percent per annum or more

Operating profit 10 percent of net sales or more

Old targets

(set 9/2014) Organic growth of net sales at 5-10 percent per annum

Operating profit 10-15 percent of net sales

Revised targets

as of 1 Jan 2016

• As of 1 January 2016 Okmetic will report customer segments’ net sales instead of the value of deliveries.

Thank you!

Okmetic Q4 & 2015 financial results · Okmetic Q4 & 2015 financial results Kai Seikku President 4...

Documents

Transcript of Okmetic Q4 & 2015 financial results · Okmetic Q4 & 2015 financial results Kai Seikku President 4...