Cemat — Earnings Release 2012

Mar 20, 2013

No. 02/13

ON THE RIGHT TRACK IN A YEAR OF CHALLENGING MARKETS

FINANCIAL RESULTS

-- Revenue DKK 289.6 million (Expectations: DKK 260-280 million)
-- EBITDA DKK 12.8 million (Expectations: DKK 5-15 million)
-- The cost reduction programmes launched in 2011 continued in 2012, taking
full effect during the year and resulted in overall cost reductions of DKK
20 million compared to the year before.
-- Management considers the financial results to be unsatisfactory.

MARKET

-- Topsil’s primary market, the power market, developed negatively in 2012
compared to 2011, particularly H2 and within the high and very high voltage
segments.
-- In the long term, the industry – and Topsil – remain to expect market
trends to be favourable because the underlying trends remain the same.

NEW STRATEGY “EXECUTING ON OPPORTUNITIES” 2013-2015

“Executing on Opportunities” 2013-2015 is based on plans for growth made
between 2010 and 2012. The intention is for Topsil to considerably strengthen
its position on the power market. The strategy includes for key points:

-- To increase focus on the type of products expected to show the highest
growth rates in the coming years, especially the PFZ products.
-- To reinforce the market position in Japan and China, both being
strategically important markets.
-- To enhance wafer production efficiency.
-- To secure an improved cash flow.

IMPROVED EXECUTION IN 2012 CONSTITUTING THE 2013 PLATFORM

Improving its ability to execute projects within the expected time and
financial framework is an important prerequisite for Topsil’s strategy. This
means specifically:

-- Topsil intensified the sales efforts on key markets in 2012 and expect
during 2013 to be able to announce a streamlined sales organisation Japan,
considered to be the world’s largest float zone market.
-- Topsil submitted the first samples of the new next generation
larger-diameter wafers (200mm) for customer qualification end of year,
according to plan. The new products, however, are not expected to
significantly improve performance in 2013, due to the length of the
qualification process.
-- Topsil installed a number of new machines at the new plant, a pre-condition
for producing the first test material for customer qualification at the
turn of the year. The company expects production of silicon to take place
at its two facilities in Frederikssund, Denmark, throughout 2013 and for
production at its old facilities to cease in 2014.
-- Topsil’s
quality management system was significantly upgraded during the year, and
TS16949 certification in Denmark was obtained, facilitating access to the
strategically important automotive market.

-- Topsil renewed an agreement with its bankers at the end of year, involving
extension of existing facilities and a DKK 55 million temporary credit
facility commitment.

EXPECTATIONS FOR 2013

Following a relative drop in market value from 2011 to 2012, the silicon
industry expects the market to recover slightly in 2013 (Gartner, WSTS, SEMI),
due to an increasing number of infrastructure projects which are expected to
materialise primarily in the second half of 2013. Topsil’s customers confirm
this picture.

Based on the above, Topsil expects to generate revenue for 2013 at least in
line with revenue for 2012.

Topsil expects a more efficient wafer production to help improve the Company’s
earnings for 2013, but it will be partly offset by the costs relating to
temporary parallel production lines in two locations in Frederikssund, Denmark,
customer qualification of the new plant and the relocation to the new
facilities. Overall, the Company expects that EBITDA in 2013 will at least be
in line with EBITDA for 2012.

These expectations are based on exchange rates of DKK 600/USD 100 and DKK
180/PLN 100.

Please note that the annual report for 2012 is available electronically (as
pdf) only.

     Any queries regarding this stock exchange announcement may be

addressed to the company's CEO: Christina Fris Bjørling, Communications, tel.:
+45 2152 1011