Cemat — Earnings Release 2014

Aug 26, 2014

"Our financial performance in Q2 was not satisfactory. There was a significant
adverse impact from the pending customer complaint. The technical investigation
into the complaint is nearing its conclusion, and shipment of replacement
wafers has begun. We have obtained qualification of our new 200 mm float zone
silicon wafers by a large, potential automotive customer in Japan and have
recently shipped the next version, 150 mm float zone products, to several
customers for qualification.” Kalle Hvidt Nielsen, CEO

Highlights of the quarter

-- The technical investigation
into the complaint is nearing its conclusion.
Shipment of the first replacement wafers to the customer was begun after
the end of the reporting period.

-- Topsil's revenue was DKK 65.3 million in Q2 2014 against DKK 87.3 million
in Q2 2013. Revenue was adversely affected by the customer complaint, which
has had the effect that a large customer chose to temporarily suspend all
silicon supplies from Topsil. Q2 2013 was positively affected by silicon
sales to a number of one-off projects.

-- The contribution margin was 42.3% in Q2 2014 against 48.7% in Q2 2013. The
contribution margin was adversely affected by the decline in sales, changes
in the sales mix and extra irradiation expenditure.

-- Other external costs and staff costs totalled DKK 32.7 million, up from DKK
30.9 million in Q2 2013. The increase mainly related to additional
production staff and costs related to the establishment and operation of a
sales office in Japan.

-- EBITDA was a loss of DKK 5.0 million in Q2 2014 against a profit of DKK
11.6 million in Q2 2013.

-- Working capital stood at DKK 136.1 million at 30 June 2014, representing a
reduction of DKK 19.5 million compared to 30 June 2013.
-- Cash flows from operating activities were an inflow of DKK 7.3 million in
Q2 2014 against an outflow of DKK 9.1 million in the year-earlier period.
The cash flows for investing activities were DKK 2.6 million, which was a
reduction of DKK 3.4 million compared to Q2 2013.

-- Next-generation float zone silicon wafers (200 mm) were qualified by a
large potential automotive customer in Japan. Test wafers of the next
version, 150 mm float zone silicon wafers, were submitted for customer
qualification.

-- After the end of the period, a change of sales management was announced.

-- Topsil signed an agreement with its principal bankers.

Outlook for 2014

Topsil's guidance is unchanged from the profit warning of 3 July 2014 of
revenue in the range of DKK 270-290 million and EBITDA in the range of DKK 0-10
million.

This announcement has been prepared in a Danish-language and an
English-language version. In the event of any discrepancies, the Danish version
shall prevail.

The announcement is attached in PDF.

     Please direct any questions regarding this announcement to the

Company's CEO and CFO through Ms. Christina Fris Bjørling, Communications
Manager, tel.: +45 2152 1011, cfb@topsil.com.
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