Cemat — Earnings Release 2014

Mar 24, 2015

"The past year was tough for Topsil. A complaint from a major customer in the
second quarter had an adverse impact on our financial results and claimed many
resources for the investigation process. The case has now been clarified, and
in early 2015 an agreement was made with the customer affected regarding
replacement deliveries and new sales.
2015 will be an exciting year in which we will continue our efforts to position
Topsil in the medium-voltage segment, intensify sales of our new 150 mm and 200
mm Float Zone generations and, not least, we will reap the benefits of having
gathered our Danish production at our new plant."
Kalle Hvidt Nielsen, CEO

                                                     Announcement no. 3/2015
                                         Company reg. (CVR) no.: 24 93 28 18
                                                               24 March 2015

HIGHLIGHTS OF THE YEAR

-- Revenue was DKK 272.3 million in 2014 (2013: DKK 312.1 million), a 13%
decline.

-- The contribution ratio was 48.1% in 2014, a year-on-year improvement of 1.8
percentage point. The improvement in the contribution ratio was mainly
driven by the underlying sales mix and production improvements; however,
this was partly offset by increased price pressure.

-- EBITDA was a loss of DKK 9.4 million in 2014 (2013: a profit of DKK 21.0
million). The lower EBITDA was mainly a consequence of the complaint case
and one-off costs, partly for the transfer of production to Topsil's new
production facility in Frederikssund, Denmark, and partly for changes in
sales management.

-- It is estimated that the complaint case reduced EBITDA by approximately DKK
30 million.

-- Working capital was DKK 118.6 million at 31 December 2014 (2013: DKK 140.1
million). The DKK 21.5 million reduction was partly the result of a decline
in trade receivables by DKK 12.5 million and the focus on accelerating the
collection of receivables.

-- Topsil generated a cash outflow from operating activities of DKK 6.3
million in 2014 (2013: a cash inflow of DKK 18.3 million). The cash flow
from operating activities was adversely affected by the unsatisfactory
results.

-- 2014 was a year with many positive results in terms of product launches,
optimisation of production, and new important framework agreements on the
Asian market. The growth platform was strengthened and, in the coming
three-year strategy period, efforts will be even more focused on efficiency
improvements and on a less complex business approach. Moreover, we will
investigate the possibilities of forming strategic partnerships to
strengthen our supply chain and sales efforts.

OUTLOOK FOR 2015

In 2015, we expect revenue growth of around 0-5% and an EBITDA of 10-20 million
kr.

Based on the strategic growth initiatives, the positive trend in the market and
a gradual resumption of deliveries to the customer affected by the complaint,
Topsil expects revenue to grow in 2015. The highest growth rates are expected
in Asia, especially in the market for silicon products for the medium-voltage
segment (FZ-PFZ).

The underlying volume growth will be somewhat higher, but prices are expected
to remain squeezed as the surplus capacity in the market continues. However,
the lower selling prices are expected to be offset by efficiency improvements
and cost reductions.

Med venlig hilsen / Best regards

Topsil Semiconductor Materials A/S

Jens Borelli-Kjær Kalle Hvidt Nielsen

Chairman CEO

Please note that this translation is provided for convenience only. The Danish
version shall prevail in case of discrepancies.

     Any queries regarding this company announcement may be addressed to

the company's CEO through Susanne Hesselkjær, Executive Secretary, tel.: +45
2926 6752

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