Okmetic's Capital Markets Day: Okmetic renews customer segmentation to better reflect the company's strategic focus on high value-added products and updates long-term financial targets

OKMETIC OYJ        STOCK EXCHANGE RELEASE   2 OCTOBER 2015         AT 8.00 A.M.

OKMETIC'S CAPITAL MARKETS DAY: Okmetic RENEWS CUSTOMER SEGMENTATION TO BETTER REFLECT THE COMPANY'S STRATEGIC FOCUS ON HIGH VALUE-ADDED PRODUCTS AND UPDATES LONG-TERM FINANCIAL TARGETS

Okmetic Oyj arranges a Capital Markets Day in Helsinki today, Friday, 2 October 2015, starting at 8.45 a.m. The presentation materials will be available today on the company's website www.okmetic.com, under Investors/Presentation materials.

In line with its strategy, Okmetic has focused on high value-added silicon wafers since 2006. The current customer segments are Sensor wafers and Semiconductor wafers. The Sensor wafer segment also includes silicon wafers delivered to other customer areas. The importance of wafer deliveries to other customer areas has increased as Okmetic has managed to develop products for new market areas as a result of long-term R&D efforts. This is why the company needed to redefine its customer segmentation.

Okmetic supplies silicon wafers to be used in the manufacture of sensors as well as discrete semiconductors and analog circuits. Based on these market areas, the new customer segments are Sensor wafers and Discrete&Analog wafers (D&A wafers). The revised customer segmentation facilitates the company's positioning in the semiconductor industry's value chain and better reflects the company's business focus.

The Sensor wafer segment includes silicon wafers used for MEMS and other sensor applications. The D&A wafer segment consists of high resistivity wafers and high voltage SOI wafers currently included in Sensor wafers as well as of other semiconductor wafers. As a result of these changes, Okmetic has two growing customer segments that are equal in size. New customer segmentation will be applied in financial reporting as of 1 January 2016. At the same time, the company will start reporting net sales of the two customer segments instead of the value of deliveries.     

The growing areas of the electronics industry, mobile smart devices, automotive applications, smart homes and environments, the Internet of Things, applications for health care and industrial processes continue to see steady growth, and this is driving demand for Okmetic's products. The company will continue to focus on and invest in technologies that serve both of its customer segments: 200 mm wafers, SOI production technology and crystal growing, which enables the manufacture of high and low resistivity products.

Both customer segments are expected to grow over the next five years. Growth is sought with new products to new and existing customers. Of all market areas, Asia's relative share of sales is expected to grow fastest. Okmetic estimates all three market areas, Asia, Europe and North America, to account for an equal share of sales in 2020. 

OKMETIC'S LONG-TERM FINANCIAL TARGETS REVISED

Following the changes in customer segmentation, Okmetic updates its long-term financial targets. As of 1 January 2016, they will be as follows:

- Organic growth of net sales 5-10 percent per annum (currently organic growth of sensor wafer business at 10 percent per annum or more)
- Operating profit 10-15 percent of net sales (currently operating profit 10 percent of net sales or more)

The 5-10 percent organic growth target for net sales now extends to the entire business instead of the earlier target covering only the Sensor wafer segment. The new growth target exceeds the company's historical annual growth rate as well as the annual growth rate forecasted for the entire silicon wafer industry. The raise of operating profit target to 10-15 percent of net sales reflects the company's increasing shift towards high value-added wafers across its entire business.

OKMETIC OYJ

Kai Seikku
President

For further information, please contact:

President Kai Seikku, Okmetic Oyj,
tel. +358 9 5028 0232, email: kai.seikku@okmetic.com

Okmetic is a technology company which supplies tailor-made silicon wafers for sensor and semiconductor industries. 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 Helsinki under the code OKM1V. For more information on the company, please visit our website at www.okmetic.com.