Okmetic Company Presentation February 2016
Tailor-made silicon wafers for the manufacture of sensors, discrete semiconductors and analog circuits Okmetic supplies tailor-made silicon wafers for sensor and semiconductor industries. Key figures 2015 Net sales 84.5 million euro As of 1 January 2016 Okmetic s customer segments are Sensor wafers and Discrete&Analog wafers (D&A wafers). Operating profit Personnel 394 9.1% of net sales Okmetic is the world s leading supplier of sensor wafers and an esteemed technological partner. 2 / Okmetic Communications / February 2016
Milestones 2015 Capacity expansion for 200 mm silicon wafers and advanced SOI wafers started 2012 Wafering line capacity expansion started 2011 Sales office in Hong Kong opened 2011 SOI capacity expansion started by extending the Vantaa plant 2009 Sensor business capacity expansion started 2006 Sales office Okmetic K.K. founded in Japan 2004 Okmetic fab lite strategy introduced 2001 SOI wafer volume production started 2000 Okmetic listed on the Helsinki Stock Exchange (today Nasdaq Helsinki) 1999 Okmetic Inc. starts the production of epi wafers at Texas plant 1997 Start of new crystal and wafer plant in Vantaa, Finland 1987 Okmetic starts industrial production of silicon wafers in Espoo, Finland 1985 Foundation of Okmetic Oy, a joint venture of Nokia and Outokumpu 3 / Okmetic Communications / February 2016
Okmetic is early in the electronics value chain E.g. automotive, consumer electronics, IoT, healthcare, process industry Polycrystalline supplier Silicon wafer supplier 8 BUSD (Foundry) Semiconductor producer 341 BUSD (System supplier) End product producer 1,49 Trillion USD 4 / Okmetic Communications / February 2016
Okmetic targets the niche markets of the semiconductor industry with high-performance wafers Sensor industry Market 9 billion USD Okmetic is the market leader Discrete&Analog industry Market 64 billion USD Okmetic is a valued and reliable supplier 5 / Okmetic Communications / February 2016
Sensors, discrete semiconductors and analog circuits can be found in many products around us Okmetic s silicon wafers are used for the manufacture of sensors, discrete semiconductors and analog circuits. Automotive Consumer electronics Medical instrumentation Process control 6 / Okmetic Communications / February 2016
Examples of automotive sensors Tank / Tire pressure On board diagnostics Microphones / Displays Communication Inertial sensors Airbag and stability control Angular rate Navigation, Tilt, Chassis Pressure sensor Vehicle dynamics, crash detection Mass air flow sensor Air intake Angular rate sensor Roll over 7 / Okmetic Communications / February 2016
Okmetic s products SOI (Silicon-On-Insulator) wafers, large product family DSP (double side polished) wafers SSP (single side polished) wafers High resistivity wafers up to and beyond 5 kohm-cm Low resistivity wafers below 1 mohm-cm Large portfolio of different crystal materials with different dopants and orientations Complete set of 100-200 mm wafers for sensor, discrete semiconductor and analog circuits markets 8 / Okmetic Communications / February 2016
Okmetic worldwide Finland: HQ, a plant, sales, customer support North America: Sales, customer support, sales representatives Asia: Sales offices in Japan and Hong Kong, sales representatives in China, Korea, Malaysia, Singapore and Taiwan. Customer support in Japan and China. 9 / Okmetic Communications / February 2016
Okmetic s supply chain Vantaa plant, Finland Crystal growth Sensor wafers Silicon wafers used in the manufacture of discrete semiconductors and analog circuits (D&A wafers) Advanced wafers (SOI) Fab lite capacity, Japan and China Both sensor wafers and D&A wafers 10 / Okmetic Communications / February 2016
Okmetic s strengths Crystal growing High-performance wafer manufacturing Agile supply chain Customer relations Okmetic is the market leader in silicon-based solutions in its chosen market segments as well as a technological pioneer. 11 / Okmetic Communications / February 2016
Fab lite model important part of Okmetic s production strategy already since 2004 Okmetic manages the customership We take care of order-delivery process We are responsible for the quality of wafers Shipments sent directly to the customer All quality and environmental certificates 12 / Okmetic Communications / February 2016
Quality and environmental issues are under special attention Okmetic has all relevant quality and environmental certificates (ISO 9001, TS 16949, ISO 14001) Okmetic complies with industry s tight regulation (REACH, RoHS directive and the GADSL) Quality and environment certification is required also from our subcontractors (ISO 9001, ISO 14001) Improvements are driven by Six Sigma and Lean manufacturing tools ISO 9001:2008 TS 16949:2009 ISO 14001:2004 13 / Okmetic Communications / February 2016
Competent and motivated personnel Okmetic invests in personnel s training, development and well-being at work Okmetic aims at creating a dynamic, open and innovative work environment for its personnel All personnel groups are within the scope of incentive schemes Personnel s competence is strong and internationally competitive Production personnel have studied the basis of chemical technology 14 / Okmetic Communications / February 2016
Okmetic s mission Okmetic s silicon wafers are part of a further processing chain producing end products that improve human interaction and quality of life. We produce solutions that enhance our customers competitiveness and profitability. The applications in which our silicon wafers are used include wellness, transportation, safety, communications and environmental technologies. 15 / Okmetic Communications / February 2016
Okmetic s values Customer orientation Continuous improvement Profitability Know-how Co-operation We are the best partner for customers. 16 / Okmetic Communications / February 2016
Sensor wafers account for 65% of deliveries, North America biggest in sales Value of deliveries per market area Value of deliveries per customer area 21 % 45 % 33 % 35 % 65 % 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 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). 17 / Okmetic Communications / February 2016
Key figures 1,000 euro 2015 2014 2013 Net sales 84,540 74,104 68,516 Operating profit before depreciation (EBITDA) 15,115 12,985 10,905 Operating profit without non-recurring restructuring costs 10,972 6,401 5,031 % of net sales 13.0 8.6 7.3 Operating profit 7,718 6,401 5,031 % of net sales 9.1 8.6 7.3 Profit for the period 4,832 4,832 3,842 Basic earnings per share, euro 0.29 0.29 0.23 Net cash flow from operating activities 14,716 12,478 9,726 Net interest-bearing liabilities 2,283-1,110 6,530 Equity ratio, % 64.0 70.5 68.2 Average number of personnel during the period 394 370 363 18 / Okmetic Communications / February 2016
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 19 / Okmetic Communications / February 2016
Major shareholders on 31 December 2015 Shares, pcs Share, % Ilmarinen Mutual Pension Insurance Company 1,004,985 5.81 Oy Ingman Finance Ab 900,000 5.21 Mandatum Life Insurance Company Ltd. 800,000 4.63 The State Pension Fund 600,000 3.47 Nordea Nordic Small Cap Fund 565,820 3.27 Varma Mutual Pension Insurance Company 477,175 2.76 Okmetic Oyj 406,129 2.35 Oy Etra Invest Ab 400,000 2.31 Taaleritehdas Mikro Markka Fund 229,456 1.33 Kaleva Mutual Insurance Company 212,700 1.23 10 largest shareholders total 5,596,265 32.37 Nominee registered 3,232,165 18.70 Other shares 8,459,070 48.93 Total 17,287,500 100.00 20 / Okmetic Communications / February 2016
Board of directors Jan Lång, chairman M.Sc. (Econ.) Vice chairman of the board 2014-, chairman of the board 2015- Henri Österlund, vice chairman M.Sc. (Econ.) Accendo Capital fund, founding partner Member of the board 2008-, chairman of the board 2009-2014, vice chairman of the board 2015- Hannu Martola M.Sc. (Tech.), emba President and CEO of Detection Technology Oyj Member of the board 2009- Riitta Mynttinen Chemical Engineer (B.Sc.), emba Member of the board 2015- Mikko Puolakka M.Sc. (Econ.) Member of the board 2012-21 / Okmetic Communications / February 2016
Executive management group Nearly 100 years of experience with silicon wafers Kai Seikku, President With Okmetic since 2010 Atte Haapalinna, Senior Vice President With Okmetic since 1998 Responsible for product portfolio and product development Jaakko Montonen, Senior Vice President With Okmetic since 1994 Responsible for supply chain, contract manufacturing and sourcing Juha Jaatinen, Senior Vice President With Okmetic since 2010 Responsible for finance and accounting, IT and communications Markus Virtanen, Senior Vice President With Okmetic since 1999 Responsible for human resources, quality and environment Anna-Riikka Vuorikari-Antikainen, Senior Vice President With Okmetic since 1992 Responsible for customers and markets 22 / Okmetic Communications / February 2016
Top ten in silicon wafers 1. Shin-Etsu Handotai Japan 2. Sumco Japan 3. Siltronic Germany 4. SunEdison (former MEMC Electronic Materials) United States 5. LG Siltron South Korea 6. Sino-American Silicon Products Taiwan 7. Wafer Works Taiwan 8. OKMETIC Finland 9. Episil Taiwan 10. Topsil Denmark Source: Gartner 23 / Okmetic Communications / February 2016
Okmetic today and tomorrow Market and technology leader in the sensor wafer market Global sales network and customer support Co-operates with leading research institutions Develops its operational processes Offers attractive jobs Boosts shareholder value Leading sensor manufacturers in USA, Europe and Asia are Okmetic s satisfied customers. 24 / Okmetic Communications / February 2016
Contact us www.okmetic.com sales@okmetic.com communications@okmetic.com Okmetic Oyj P.O.Box 44, FI-01301 Vantaa, Finland Piitie 2, FI-01510 Vantaa, Finland Telephone +358 9 502 800 Fax +358 9 5028 0500 Okmetic Inc. 301 Ridgemont Drive, Allen, TX 75002, USA Telephone +1 972 747 8600 Fax +1 972 747 8611 Okmetic K.K. Sunrise Mita 8F 3-16-12, Shiba Minato-ku, Tokyo 105-0014 Japan Telephone +81 3 3798 1400 Fax +81 3 3798 1402 Okmetic Ltd. Level 3 A, Causeway Corner 18 Percival Street, Causeway Bay, Hong Kong Telephone +852 3656 7858 Fax +358 9 5028 0200 25 / Okmetic Communications / February 2016