Cemat — Interim / Quarterly Report 2016

May 31, 2016

TOPSIL SEMICONDUCTOR MATERIALS A/S
Interim report, Q1 2016
1 January–31 March 2016

Topsil’s Board of Directors has signed an agreement to sell Topsil’s silicon
business to GlobalWafers at a price of DKK 320 million. The agreement is
subject to approval by the shareholders at the extraordinary general meeting to
be held on 17 June 2016.

Over the past few years, Topsil has been seriously challenged by negative
market developments, too expensive and too comprehensive long-term raw
materials contracts and the failure of some of our sub-suppliers to meet our
quality standards. Thanks to our efforts during the past few years to
strengthen Topsil’s position within highly specialised float zone wafers for
the power market, several major bidders have found our silicon business
attractive despite our poor financial performance.

By becoming part of one of the leading players in the business, Topsil is
taking a necessary step towards improving our competitive strength. The move
will significantly reinforce our negotiating position in respect of major
customers and suppliers, and GlobalWafers possesses the wafering technology
that has previously caused us problems due to the failure of a sub-supplier to
live up to our quality standards.

                                          Kalle Hvidt Nielsen, CEO

Q1 HIGHLIGHTS

-- On 20 May 2016, the Board of Directors signed a conditional agreement to
sell Topsil’s silicon business to GlobalWafers for DKK 320 million on a
debt-free basis.

-- The selling price cannot yet be finally determined, being subject to
specific factors, including the outcome of a patent dispute, a calculation
of the value of Topsil’s inventories and the revenue of Topsil’s silicon
business for the six months ending 30 June 2016. In a worst case
assumption, this is believed to involve a possible reduction of the selling
price in the order of 10%.

-- Considering the transaction to be in the interests of shareholders,
employees and other stakeholders, Topsil’s Board of Directors recommends
that the Company’s shareholders approve the sale of the silicon business.

-- If the sale is approved by the extraordinary general meeting to be held on
17 June 2016, Management will take steps to significantly trim the
continuing business, which will comprise a Danish listed holding company,
whose only activity will be the Polish property business, which is
currently being prepared for sale.

-- On completion of the transaction and repayment of its bank debt, payment of
transaction costs and management changes, the listed company is expected to
have at its disposal excess liquidity in the net amount of approximately
DKK 110 million, equal to DKK 0.21 per share. The Board of Directors
recommends that most of these cash funds be distributed to the company’s
shareholders in the third quarter of 2016.

-- As a result of the conditional agreement to sell Topsil’s silicon business,
our reporting is to be divided into continuing and discontinued operations.

-- Topsil reported a loss of DKK 92.5 million for the first quarter of 2016,
of which DKK 88.0 million can be attributed to depreciation, amortisation
and impairment of the assets of the silicon business in accordance with the
anticipated selling price of the silicon activities.

OUTLOOK FOR 2016

Our expectations are based on the assumption that the sale of Topsil’s silicon
business is approved by the extraordinary general meeting to be held on 17 June
2016.

If the divestment is completed effective 1 January 2016, revenue is therefore
expected to amount to DKK 36 million, assuming that under the new ownership the
Polish silicon business stays on as a tenant throughout 2016 and purchases
utilities (hydrogen, power, water, etc.) from the property company in the same
amounts as previously.

The divestment of the silicon business is expected to be finalised in the third
quarter of 2016, following which steps will be taken to significantly trim the
Danish listed holding company.

For the year as a whole, EBITDA is expected to amount to a loss of DKK 10-15
million, impacted by restructuring costs in the region of DKK 11 million.

If the sale of the silicon business falls through, sales efforts are expected
to impact adversely on EBITDA.

Moreover, in order to implement its strategy and create additional value for
its shareholders, Topsil will, the Board of Directors believes, require a
significant capital contribution if the sale is not completed.

The full text of the announcement is attached in PDF.

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

Please direct any questions regarding this announcement to CEO Kalle Hvidt
Nielsen or CFO Jesper Bodeholt through Susanne Hesselkjær, Executive Secretary,
tel.: +45 2926 6752.

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