OKMETIC OYJ INTERIM REPORT 1 JANUARY-31 MARCH 2014: NET SALES GROWING, STRONG DEMAND ESPECIALLY FOR SENSOR WAFERS

OKMETIC OYJ      INTERIM REPORT            24 APRIL 2014 AT 8.00 A.M.

INTERIM REPORT 1 JANUARY - 31 MARCH 2014: NET SALES GROWING, STRONG DEMAND ESPECIALLY FOR SENSOR WAFERS

Unless otherwise stated, figures in parenthesis refer to the corresponding period in the previous year.

JANUARY-MARCH IN BRIEF:

Net sales amounted to 17.4 (16.4) million euro, up 6.1%.Silicon wafer shipments amounted to 17.5 (15.5) million euro, up 13.0%. Operating profit was 0.9 (1.4) million euro, corresponding to 5.3% (8.4%) of net sales.Profit for the period was 0.6 (1.2) million euro.Basic earnings per share was 0.04 (0.07) euro.Net cash flow from operations amounted to 0.6 (0.8) million euro.

SHORT-TERM OUTLOOK

The demand for semiconductors is expected to grow in year 2014. Also for the silicon wafer market, volume growth is expected in 2014. However, the average price level of wafers as well as the total value of the silicon wafer market is expected to further decline.

Demand for Okmetic's sensor wafers is estimated to grow from the previous year, and the sales and price levels of sensor wafers are expected to be fairly stable throughout the year. Prices of semiconductor wafers are hit by the weakened Japanese yen. However, the demand is expected to pick up compared to 2013. In accordance with normal seasonal fluctuation, the demand for semiconductor wafers is strongest in the second and third quarters of the year. Other business sales are not expected to materially differ from the low level of year 2013.

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:

"Net sales were up compared to the corresponding period last year. The development of net sales was particularly positive in high value-added sensor wafers, with a more than 17-percent rise in shipments from the corresponding period in year 2013. Sensor wafers already accounted for 63 percent of net sales for the quarter. Shipment volumes in semiconductor wafers were also up. Other business accounted for only a marginal share of net sales in the first quarter.

Operating profit fell in comparison to the first quarter of 2013. Comparable profitability in silicon wafers however improved. In the reporting period, operating profit was negatively impacted by non-operating IFRS items, which in the same period of last year had a significant positive impact on profit performance. Moreover, Other business sales in the first and second quarters of 2013 included substantial income from polysilicon trading. This year, the polysilicon trading, made for purposes of working capital management, is likely to take place in the second and third quarters of 2014. Tentatively, the company does not foresee a significant need for this kind of inventory adjustment anymore in the fiscal year of 2015.

Strong demand and good margins in sensor wafers improved profitability in the silicon wafer business. Semiconductor wafer sales also showed growth, but, as anticipated, the sales margin fell clearly short of the average for 2013 due to the lower price level. The Allen plant was loss-making at the beginning of the year due to demand and inventory, and this further weighed on the quarterly operating profit.

The healthy demand of the first quarter looks set to continue in the second and third quarters. Okmetic is enjoying strong growth in sensor wafers, thanks to investments made over a number of years. In the beginning of the year, the company set a record in SOI wafer sales. As anticipated, there was also strong growth in the share of 200-millimetre wafers in key customer segments during the reporting period. To support this development, new in-house capacity for the production of 200-millimetre wafers will be added in the second quarter.

In semiconductor wafer sales, Okmetic focuses on discrete and power semiconductors where it possesses a high level of expertise and long-standing client relationships. The current price level for these wafers is challenging, but long-term prospects are promising. The applications for electric and hybrid vehicles (e-mobility) and green energy will require semiconductor components for power management, current control and energy saving. In addition to its focus on sensor wafers, Okmetic will continue its commitment to serving the discrete and power semiconductor industries by investing in product development and production technology."

KEY FIGURES

1,000 euro 1 Jan-
31 Mar
2014
1 Jan-
31 Mar
2013
1 Jan-
31 Dec
2013 1 Jan-
31 Dec
2012 Net sales 17,405 16,403 68,516 83,074 Operating
profit
before
depreciation
(EBITDA)



2,546



2,725



10,905



13,864 Operating
profit
928
1,373
5,031
8,018   % of net sales 5.3 8.4 7.3 9.7 Profit for
the period
641
1,218
3,842
5,089 Basic earnings
per share,
euro

0.04

0.07

0.23

0.31 Net cash flow
from operating
activities

632

811

9,726

9,425 Net interest-
bearing
liabilities

8,898

2,003

6,530

-1,688 Equity ratio,% 68.4 67.3 68.2 72.2 Average number of personnel
during the period


355


358


363


368

MARKETS

Customer industries

Sensor industry

The sales value of sensor industry increased by 5.8 percent in 2013 compared to the previous year. The increasing use of micro sensors in many consumer electronics products has accelerated sensor sales growth. In 2014, the sales value of sensor industry is estimated to grow by 7 percent, and annual growth of 5-13 percent is forecasted for the next few years. In terms of volume, sensor shipments are likely to clearly rise to a new record in year 2014 too. (IHS, Yole)

Semiconductor industry

The global semiconductor industry's sales in US dollars reached a new record in the last quarter of 2013. For the whole year 2013, the sales were 4.2 percent higher than in the previous year, and exceeded for the first time 300 billion US dollars (303.5 billion USD, SIA). The prices of memory circuits turned into growth, which had a positive impact on the market.
The sales volumes in January and February were clearly higher than in 2013 (+10% on average), but according to the seasonal fluctuation typical of the industry, monthly sales were approximately five percent lower than in November 2013 (SEMI).

The semiconductor market is expected to continue to grow moderately during 2014. The growth estimates for the whole year settle between 3 and 7 percent (WSTS, Cowan, Digitimes, ICInsights), and the growth is expected to continue also in the following years (IDC). Faster sales growth than market average is forecasted for discrete and power semiconductors, which are important to Okmetic (IC Insights, Infiniti Research).

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 in 2013 calculated in square inches was 0.4 percent larger than in 2012. The total value of the silicon wafer market in US dollars kept decreasing in 2013 due to declined average sales prices and weakening of the Japanese yen. The volume of silicon wafer shipments in January-February 2014 followed the trend in semiconductor sales and exceeded the level of the corresponding period in 2013 (SMG).

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 silicon wafers for discrete and power semiconductor production. 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 January-March, Okmetic's net sales amounted to 17.4 (16.4) million euro. Net sales increased by 6.1 percent (decrease of 13.2%) compared to the corresponding period last year, due to strong demand for sensor wafers. Okmetic's market share remained stable in product groups important to the company, and sales improved towards the end of the first quarter.

Sales per customer area

1 Jan-
31 Mar
2014 1 Jan-
31 Mar,
 2013 1 Jan-
31 Dec
2013 1 Jan-
31 Dec,
 2012 Sensor wafers 63% 60% 59% 47% Semiconductor wafers 35% 37% 37% 38% Other business 2% 3% 4% 15%

The demand for sensor wafers was very strong in January-March, and the value of shipments was 17.5 percent higher than in the corresponding period last year. Especially the demand for the strategically important SOI wafers was at a good level. The demand for sensor wafers is estimated to remain solid throughout the year 2014.

The semiconductor industry's demand shows signs of recovery, and the semiconductor wafer sales as well grew in the first quarter. The value of shipments in January-March was 5.6 percent higher than in the corresponding period last year.

The value of Other business shipments amounted to 0.3 (0.6) million euro in January-March.

Sales per market area

1 Jan-
31 Mar,
2014 1 Jan-
31 Mar,
 2013 1 Jan-
31 Dec,
2013 1 Jan-
31 Dec,
2012 North America 37% 39% 42% 37% Europe 40% 36% 40% 27% Asia 23% 25% 18% 35%

In the first quarter, Okmetic's sales in Europe showed strong growth. Also in North America the sales performed well. Sales in Asia were at the same level as in the first quarter of 2013.

PROFITABILITY

January-March

In January-March, Okmetic's operating profit amounted to 0.9 (1.4) million euro, corresponding to 5.3 (8.4) percent of net sales. The Allen plant had a negative stand-alone result in January-February, which had a significant effect on the group's operating profit, as did clearly higher depreciations than in the comparison period. In addition, IFRS entries and polysilicon trading income in 2013 explain the difference to the comparison period.
Profit for the period was 0.6 (1.2) million euro. Basic earnings per share was 0.04 (0.07) euro. Diluted earnings per share was 0.04 (0.07) euro.

FINANCING

The company's financial position is solid. In January-March, net cash flow from operations amounted to 0.6 (0.8) million euro. Changes in working capital tied up in operations weakened net cash flow from operations by 2.0 (2.6) million euro.

On 31 March 2014, the company's interest-bearing liabilities amounted to 12.6 (15.9) million euro.

At the end of the period, the cash and cash equivalents amounted to 3.7 (13.9) million euro. On 31 March 2014, the company's net interest-bearing liabilities amounted to 8.9 million euro (2.0 million euro on 31 March 2013). The increase in net interest-bearing liabilities is due to the five-year loan agreement of 10 million euro, signed in January 2013. The loan is used for investments and general corporate purposes. The group has ensured liquidity with committed credit facilities of 6.0 million euro. On 31 March 2014, two million euro of the committed credit facilities was in use.

Return on equity amounted to 4.4 (7.8) percent. The company's equity ratio was 68.4 (67.3) percent. Equity per share was 3.46 (3.80) euro.

INVESTMENTS

In January-March, Okmetic's capital expenditure amounted to 1.1 (2.6) million euro. The investments in the first quarter were mainly made for increasing capacity for 200mm wafers at the Vantaa plant.

PRODUCT DEVELOPMENT

In January-March, the company expensed 0.7 (0.6) million euro in product development projects, corresponding to 3.9 (3.9) 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 products as well as developing crystal growing to enhance capability in high and low resistivity products.

PERSONNEL

In January-March, Okmetic employed on average 355 (358) people. At the end of the period, Okmetic employed 354 (354) people, of which 310 worked in Finland, 38 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 2015. Since the price level of the solar cell market has dropped, the validity of long-term polysilicon 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 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 are conducted in US dollars. Despite hedging, 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 31 March 2014, 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
31 March 2014     Shares,
pcs Share,
% Ilmarinen Mutual Pension
Insurance Company
1,549,985
9.0 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 *) 432,204 2.5 Etra-Invest Oy Ab  400,000 2.3 Investment Fund
Taaleritehdas Arvo Markka
Osake

225,100

1.3 Kaleva Mutual Pension Insurance Company 212,700 1.2 Foreign investors and
nominee accounts held by
custodian banks

2,898,603

16.8 Other 8,292,923 48.0 Total 17,287,500 100.0    

*) of which 400,000 shares through Okmetic Management Oy

SHARE PRICE PERFORMANCE AND TRADING

A total of 1.1 (1.0) million shares were traded between 1 January and 31 March 2014, representing 6.4 (5.8) 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 (4.33 euro), and the highest 5.25 (5.15) euro, with the average being 4.75 (4.71) euro. The closing quotation for the period on 31 March 2014 was 4.55 (4.53) euro. At the end of the period, the market capitalisation amounted to 78.7 (78.3) 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 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, which was 4.9969 euro. Total value of the deal was 749,535 euro. The decision to transfer company's own shares was based on authorization of the Board of Directors given by the annual general meeting on 10 April 2013.

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. All the shares were issued to the members of the executive management group in deviation from the shareholders' pre-emptive rights (directed share issue). The rewards of the share reward programme were paid in Okmetic shares and in a monetary amount covering taxes. The directed share issue without payment was executed in full as there was no consideration related to the issue.

At the end of the reporting period Okmetic held 432,204 (209,406) own shares, of which 400 000 shares through Okmetic Management Oy. The number of own shares corresponds to 2.5 (1.2) percent of Okmetic's all shares and votes.

More information relating to own shares and directed share issues can be found on the company website www.okmetic.com > Investors > Share information > Own shares.

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 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. There were no shareholders of Okmetic Management Oy in the Board of Directors of Okmetic Oyj. 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.

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, 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, Senior Vice President, Customer Support, was appointed Senior Vice President, Products from 7 April 2014.

EVENTS AFTER THE END OF THE INTERIM PERIOD

Annual general meeting on 9 April 2014

Okmetic Oyj's annual general meeting, which was held on 9 April 2014, adopted the annual accounts and the consolidated annual accounts for 2013 and discharged the company's management from liability. The annual general meeting decided, in accordance with the proposal of the board of directors that no dividend shall be distributed for the financial year 2013. Moreover, the general meeting approved the proposal of the board of directors to authorise the board of directors to decide on the repurchase and/or the acceptance as pledge of the company's own shares as well as on the issuance of shares, the transfer of the company's own shares, and the issuance of special rights entitling to shares.

It was decided that there will be five members on the company's board of directors. Mr. Hannu Martola, Ms. Mervi Paulasto-Kröckel, Mr. Mikko Puolakka, and Mr. Henri Österlund were re-elected as members of the board of directors and Mr. Jan Lång was elected as new board member until the end of the next annual general meeting. The board of directors elected Henri Österlund as its chairman and Jan Lång as its vice chairman in its organising meeting held immediately after the annual general meeting.

Authorised Public Accountant PricewaterhouseCoopers Oy was elected as auditor, with APA Mikko Nieminen having the principal responsibility.

Authorisations given to the board of directors and other decisions of the annual general meeting have been disclosed in a stock exchange release published on 9 April 2014.

CONDENSED FINANCIAL STATEMENTS AND TABLES 1 JANUARY - 31 MARCH 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 IFRS standards and IFRIC 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 Jan-
31 Mar,
2014 1 Jan-
31 Mar,
2013 1 Jan-
31 Dec,
2013 Net sales 17,405 16,403 68,516 Cost of sales -14,072 -13,118 -54,918 Gross profit 3,333 3,285 13,598 Other income
and expenses
-2,405
-1,911
-8,567 Operating
profit 928 1,373 5,031 Financial
income and
expenses

-36

-97

-630 Profit before
tax
892
1,277
4,401 Income tax -251 -58 -559 Profit for
the period
641
1,218
3,842 Other
comprehensive
income: Items that may
be
reclassified
to profit or
loss in
subsequent
periods Cash flow
hedges
-20
-47
-58 Translation
differences
-3
316
-60 Other
comprehensive
income for the
period, net of
tax



-23



269



-118 Total
comprehensive
income for
the period


618


1,487


3,724 Profit for the
period
attributable
to: Equity holders
of the parent
company

641

1,218

3,842 Total
comprehensive
income
attributable
to: Equity holders
of the parent
company

618

1,487

3,724 Basic earnings
per share,
euro

0.04

0.07

0.23 Diluted
earnings per
share, euro

0.04

0.07

0.22

CONDENSED CONSOLIDATED BALANCE SHEET

1,000 euro 31 Mar,
2014 31 Mar,
2013 31 Dec,
2013 Assets Non-current assets Property, plant and
equipment
44,827
44,819
45,295 Intangible assets 881 739 897 Other receivables 1,420 2,712 1,419 Total non-current
assets
47,128
48,270
47,611 Current assets Inventories 17,898 15,760 16,634 Receivables 16,826 16,371 14,572 Cash and cash
equivalents 3,748 13,859 5,214 Total current
assets
38,472
45,990
36,420 Total assets 85,600 94,260 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 46,507 51,605 45,451 Total equity 58,328 63,426 57,273 Liabilities Non-current
liabilities
9,540
12,950
10,533 Current liabilities 17,731 17,884 16,226 Total liabilities 27,271 30,834 26,759 Total equity and
liabilities
85,600
94,260
84,031

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

1,000 euro 1 Jan-
31 Mar,
2014 1 Jan-
31 Mar,
2013 1 Jan-
31 Dec,
2013 Cash flows from operating
activities: Profit before tax 892 1,277 4,401 Adjustments 1,705 1,223 6,566 Change in working capital -1,954 -2,626 -2,091 Financial items -77 -13 -126 Tax paid 67 950 976 Net cash from
operating activities
632
811
9,726 Cash flows from investing
activities: Purchases of property,
plant and equipment
-1,637
-4,131
-9,089 Net cash used in
investing activities
-1,637
-4,131
-9,089 Cash flows from financing
activities: Proceeds from long-
term borrowings
-
10,000
10,000 Proceeds from short-
term borrowings
4,000
23
1,024 Payments of long-term borrowings
-1,000
-
-1,000 Payments of short-
term borrowings

-2,024




-

-4,043 Payments of finance
lease liabilities
-138
-109
-478 Other items 36 - 10 Dividends paid -578 - -6,763 Capital repayment - - -1,169 Management
arrangement's
dissolvement

-768

-

- Net cash used in
financing activities
-472
9,904
-2,419 Increase (+) /
decrease (-) in cash
and cash equivalents

-1,477

6,585

-1,782 Exchange rate changes 11 -14 -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


3,748


13,859


5,214

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Equity attributable to equity holders of parent company


1,000 euro Share
capital Share
pre-
mium Reserve
for in-
vested
unre-
stricted
equity Other
re-
serves
 1) Retained
earnings Total Balance at
31 Dec, 2013
11,821
20,045
3
1,756
23,647
57,273 Profit for
the period
641
641 Other com-
prehensive
income, net
of tax: Cash flow
hedges
-20
-20 Translation
differences
-3
-3 Total com-
prehensive
income for
the period


-23


641


618 Share issue 750 750 Share-based
payments
45
45 Acquisition
of non-
controlling
interest


-357


-357 Balance at
31 Mar, 2014
11,821
20,045
753
1,732
23,977
58,328 Balance at
31 Dec, 2012
11,821
20,045
1,200
1,874
26,919
61,860 Profit for
the period
1,218
1,218 Other com-
prehensive
income, net
of tax: Cash flow
hedges
-47
-47 Translation
differences
316
316 Total com-
prehensive
income for
the period


269


1,218


1,487 Share-based
payments
80
80 Balance at
31 Mar, 2013
11,821
20,045
1,200
2,143
28,217
63,426

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-
31 Mar,
2014 1 Jan-
31 Mar,
2013 1 Jan-
31 Dec,
2013 Carrying amount
at the beginning
of the period

45,295

43,433

43,433 Additions 1,068 2,569 7,648 Disposals - - -9 Depreciation -1,538 -1,302 -5,623 Exchange differences 2 119 -154 Carrying amount
at the end of
the period

44,827

44,819

45,295

COMMITMENTS AND CONTINGENCIES

1,000 euro 31 Mar,
2014 31 Mar,
2013 31 Dec,
2013 Loans, secured with
collaterals
9,000
11,000
10,000 Collaterals 17,128 21,164 17,128 Off-balance sheet
lease commitments
395
453
395 Capital commitments 1,293 2,376 1,910 Nominal values of
derivative contracts Currency
forward
agreements

1,963

769

1,144 Currency options,
call
646
895
948 Currency options,
put
72
-
182 Electricity
derivatives
1,657
2,434
1,847
Fair values of
derivative contracts Currency forward agreements
5
-11
20 Currency options, call 4 2 12 Currency options, put
Electricity -1 - -1 derivatives -420 -199 -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 31 Mar, 2014 31 Mar, 2013   Level
 1 Level
 2 Level
 3 Level
 1 Level
 2 Level
 3 Financial
assets        Derivative
financial
instruments
-
107
-
-
31
-         Financial
liabilities        Derivative
financial
instruments
-
519
-
-
240
-

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 the 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-
31 Mar,
2014 1 Jan-
31 Mar,
2013 1 Jan-
31 Dec,
2013 Net sales 17,405 16,403 68,516 Change in net sales
compared to the previous
year's period, %

6.1

-13.2

-17.5 Export and foreign
operations share
of net sales, %

88.3

92.5

91.8 Operating profit before
depreciation (EBITDA)
2,546
2,725
10,905     % of net sales 14.6 16.6 15.9 Operating profit 928 1,373 5,031     % of net sales 5.3 8.4 7.3 Profit before tax 892 1,277 4,401     % of net sales 5.1 7.8 6.4 Return on equity, % 4.4 7.8 6.4 Return on investment, % 5.4 6.6 6.7 Non-interest-bearing
liabilities
14,625
14,972
15,014 Net interest-bearing
liabilities
8,898
2,003
6,530 Net gearing ratio, % 15.3 3.2 11.4 Equity ratio, % 68.4 67.3 68.2 Capital expenditure 1,068 2,569 7,648     % of net sales 6.1 15.7 11.2 Depreciation 1,618 1,352 5,874 Research and development
expenditure
672
644
2,779     % of net sales 3.9 3.9 4.1 Average number of
personnel during
the period
355
358
363 Personnel at the
end of the period
354
354
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 31 Mar,
2014 31 Mar,
2013 31 Dec,
2013 Basic earnings
per share
0.04
0.07
0.23 Diluted earnings
per share
0.04
0.07
0.22 Equity per share 3.46 3.80 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 4.75 4.71 4.92 Lowest trading price 4.38 4.33 4.25 Highest trading price 5.25 5.15 5.66 Trading price at the
end of the period
4.55
4.53
4.82 Market capitalisation
at the end of the
period, 1,000 euro

78,658

78,312

83,326 Trading volume (1 Jan-) Trading volume,
transactions, 1,000 pcs
1,105
1,004
3,382 In relation to weighted
average number of
shares, %

6.4

5.8

19.6 Trading volume,
1,000 euro
5,286
4,732
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/
2014 7-9/
2014 4-6/
2014 1-3/
2014 Net sales 17,405   Compared to previous
  quarter, %
3.4   Compared to corresponding
  period last year, %
6.1 Operating profit 928   % of net sales 5.3 Profit before tax 892   % of net sales 5.1 Net cash flow generated
from:
Operating activities

632 Investing activities -1,637 Financing activities -472 Increase/decrease in cash
and cash equivalents
-1,477 Personnel at the end
of the period
354
1,000 euro 10-12/
2013 7-9/
2013 4-6/
2013 1-3/
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 depreciation (EBITDA) = Operating profit + depreciation 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 period = Number of shares at the end of the 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.

NEWS CONFERENCE

A briefing for analysts, investors and media will take place on Thursday, 24 April 2014 at 8.30 a.m. in Helsinki Stock Exchange building, Fabianinkatu 14, Helsinki, (entrance via NASDAQ OMX's reception, 2nd floor). In the event, Okmetic's President Kai Seikku will present the group's performance in Q1 2014. Welcome!

OKMETIC OYJ

Board of directors

For further information, please contact:

President Kai Seikku, Okmetic Oyj,
tel. +358 5028 0232, email: kai.seikku@okmetic.com

Senior Vice President, Finance, IT, and Communications
Juha Jaatinen, Okmetic Oyj, tel. +358 9 5028 0286,
email: juha.jaatinen@okmetic.com

Distribution:
NASDAQ OMX 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 OMX Helsinki under the code OKM1V. For more information on the company, please visit our website at www.okmetic.com.

Okmetic_Interim_Report_Q114


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Okmetic Oyj via Globenewswire
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