OKMETIC OYJ STOCK EXCHANGE RELEASE
25 JULY 2013AT 8.00 A.M.INTERIM REPORT 1 JANUARY - 30 JUNE 2013: DEMAND FOR SENSOR WAFERS AND DISCIPLINED COST MANAGEMENT GENERATED GOOD PROFITABILITY IN AN UNCERTAIN MARKET Unless otherwise stated, figures in parenthesis refer to the corresponding period in the previous year. APRIL-JUNE IN BRIEF: * Net sales amounted to 17.0 (22.5) million euro, down 24.2%. * Silicon wafer shipments amounted to 16.9 (18.6) million euro, down 8.8%. * Operating profit was 2.0 (2.5) million euro, corresponding to 11.6% (11.2%) of net sales. * Profit for the period was 1.4 (2.1) million euro. * Basic earnings per share was 0.08 (0.12) euro. * Net cash flow from operations amounted to 0.5 (2.6) million euro. JANUARY-JUNE IN BRIEF: * Net sales amounted to 33.4 (41.4) million euro, down 19.2%. * Silicon wafer shipments amounted to 32.4 (33.8) million euro, down 4.1%. * Operating profit was 3.3 (4.0) million euro, corresponding to 10.0% (9.8%) of net sales. * Profit for the period was 2.6 (2.8) million euro. * Basic earnings per share was 0.15 (0.17) euro. * Net cash flow from operations amounted to 1.3 (1.7) million euro. SHORT-TERM OUTLOOK In 2013, the semiconductor industry's demand is estimated to grow again, and the sensor industry is forecast to continue on its growth track. However, growth estimates for semiconductors have been revised downwards during the year due to the slowing PC market as well as weakening demand for smartphones. The demand for sensor wafers manufactured by Okmeticis estimated to be fairly stable throughout 2013. Due to normal seasonal fluctuation, the demand for semiconductor wafers is slower in the early part of the year. After the slower- than-anticipated first half, the demand is likely to really pick up as late as in the third quarter. Okmeticstrives to outgrow the market in its core business as a manufacturer of demanding silicon wafers. Technology sales, instead, have contracted significantly as a result of the plummeted price level in the solar cell industry. This causes a structural change in the company's business. In 2013, the company's business will mainly consist of silicon wafer sales. However, the forecast growth of silicon wafer sales will not fully compensate for the steep decline in technology sales. Hence, the company's net sales will decrease in 2013. Technology sales are reported under the title Other business as of 1 January 2013due to their diminished weight and varying content. The company retains its existing guidance, according to which net sales and operating profit for 2013 are estimated to remain under the level of 2012. PRESIDENT KAI SEIKKU: " Okmetic'snet sales grew only slightly from the first quarter. The sales in the company's key focus area, demanding sensor wafers, grew in the second quarter compared to both the beginning of the year and comparison period last year. Also the semiconductor wafer sales grew from the first quarter, but remained clearly below the level reached in the second quarter of last year. The market is slowed down by, among other things, the steeper-than-anticipated decline in demand for PCs, as well as weakening of the strongest growth in the smartphone market. Especially the Japanese market has been soft this year.