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Friday 26 September, 2014

Okmetic Oyj

OKMETIC'S CAPITAL MARKETS DAY: THE COMPANY WILL...

OKMETIC'S CAPITAL MARKETS DAY: THE COMPANY WILL STAY COMMITTED TO SENSOR WAFER BUSINESS, REDEFINING LONG-TERM GROWTH TARGET TO APPLY TO THIS BUSINESS AREA ONLY

OKMETIC OYJ      STOCK EXCHANGE RELEASE    26 SEPTEMBER 2014 AT 8.00 a.m.

OKMETIC'S CAPITAL MARKETS DAY: THE COMPANY WILL STAY COMMITTED TO SENSOR WAFER BUSINESS, REDEFINING LONG-TERM GROWTH TARGET TO APPLY TO THIS BUSINESS AREA ONLY

Okmetic Oyj arranges a Capital Markets Day in Helsinki today, Friday, 26 September 2014, starting at 8.45 a.m. The presentation materials will be available later today on the company's website www.okmetic.com, under Investors/Presentation materials.

Examining Okmetic's financial development since 2005, the company has delivered on its over 10 percent operating profit target, but failed to show top-line growth at 10 percent per annum target level. Looking more closely, core business and area of strategic focus since 2006, demanding sensor wafers, has reached targeted growth in the same period. This development has lifted sensor wafers' share of sales from 34 percent in 2006 to 63 percent in the first half of 2014. Overall market for silicon and Okmetic's semiconductor wafer sales for discrete applications have fluctuated with semiconductor market cycles, growing modestly, at best. Sales of Other business peaked in the same time frame, based on the growth of solar cell industry, but returned to a very low level since 2012.

Over the years, sensor wafer category has been broadened to include also other high-margin products, such as wafers with high resistivity. Highly engineered sensor wafers constitute the core of the company's strategy, and sensor wafers also command a lion's share of past and future capex and R&D activities. Continued growth of sensor wafer business increases Okmetic's relative profitability.

Despite lesser strategic focus and lower margins, semiconductor wafers for discrete components continue to be important for the company's business. There are considerable synergies between sensor and semiconductor wafer businesses, crystal growing and capacity optimization and utilization, to name a few. Growth opportunities in semiconductor wafers are sought within capabilities, but not at the expense of profitability. Sales of Other business, currently close to zero, will be pursued opportunistically. The long-term growth target of 10 percent is, therefore, applicable to sensor wafer business only.
Okmetic's long-term targets are slightly modified 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.

Okmetic's strategy to focus on high-value-added sensor wafers, first articulated in 2006, will remain intact for the next five years. All efforts will be made to sustain market leadership in this fast-growing business area, with multiple interesting high-growth end applications, especially in the automotive industry and consumer electronics.

OKMETIC OYJ

Kai Seikku
President

For further information, please contact:
President Kai Seikku, Okmetic Oyj,
tel. +358 9 5028 0232, email: [email protected]

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.




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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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