Cemat — Regulatory Filings 2012

Aug 29, 2012

No 12/12

NASDAQ OMX Copenhagen

Nikolaj Plads 6
DK-1067 Copenhagen K

                                                              29 August 2012

COMPANY ANNOUNCEMENT NO. 12/12

Topsil launches its new “Executing on Opportunities” strategy for 2013-2015

Topsil is launching its new “Executing on Opportunities” strategy for the
period covering 2013 to 2015. The strategy will focus on creating shareholder
value and improving liquidity primarily through full exploitation of
investments in equipment, technology and buildings already made.

The strategy is based on four main themes:

-- Strengthening the company's market position in the high and medium-voltage
segments (PFZ)
-- Expanding Topsil’s position in Japan and China.
-- Securing an improved cash flows
-- Enhancing wafer production efficiency

New strategy in continuation of the ”Seizing the Opportunity” strategy,
2010-2012

The ”Executing on Opportunities” 2013-2015 strategy is a natural continuation
of ”Seizing the Opportunity” 2010-2012, which was a proactive growth strategy
based on expectations of continued very favourable market conditions in the
short and long term.

The “Seizing the Opportunity” strategy involved major investments in expanding
and upgrading the company's production capacity, building a new
state-of-the-art plant and acquiring new equipment. Topsil's growth
expectations were, however, not met in the short term since its primary market,
the power market, has proved particularly challenging since mid-2011 especially
in the sectors, in which Topsil has a large market share (NTD).

Despite current market conditions, Topsil maintains its expectations for
demographic growth and growing prosperity, implying increasing demand for
energy, which again will turn Topsil's market into a growth market.

”Executing on Opportunities” is therefore based on a low visibility market and
– in essence – builds on investments already made. Applying a niche focus, the
strategy aims to balance its proactive market activities with a strengthening
of the company's future competitiveness by enhancing efficiency.

As a result of the current low market visibility, Topsil will not provide any
guidance for revenue and EBITDA covering the overall strategy period.

Strengthening the company's market position in the high and medium-voltage
segments (PFZ)

With the newly launched technically improved products to high and
medium-voltage segments (PFZ silicon products) and new 200 mm (8-inch) silicon
wafers, Topsil intends to strengthen its position in the power market for high
and medium-voltage segments in the coming years.

Expanding geographically – focus on Japan and China.

During the strategy period, Topsil will particularly focus on expanding its
position in Japan, since the country accounts for an estimated 35% of the
global FZ market and Topsil's current market share in Japan is limited.

Furthermore, Topsil aims to strengthen its position in the strategically
important Chinese market by providing support locally to Chinese customers
currently being served out of the company's headquarters in Frederikssund,
Denmark.

Improving cash flows

During the strategy period, Topsil will work to exploit the potential inherent
in already made investments and reduce its working capital. Consequently,
investments are expected to be lower than depreciation charges in the period.
Furthermore, focus will be on reducing working capital and increasing cash
flows from operations.

Enhancing wafer production efficiency

As a result of investments made during the previous strategy period, from 2010
to 2012, Topsil has optimum technical conditions for future-proofing its
production, although it is still important that Topsil makes considerable
production efficiency enhancements to improve its competitive strength. Topsil
will therefore improve its raw materials utilisation rate and enhance
efficiency in all parts of the production chain and across locations.

Targets for the strategy period

The objective of the strategy is for Topsil to increase its market share on the
power market through notable growth in the high and medium-voltage segments
(PFZ) and by strengthening its market position in Japan and China in the period
from 2013 to 2015.

Through the implementation of comprehensive improvements and efficiency
enhancements of its production, the company will aim to reduce the average
variable cost per wafer by a minimum of 15% during the strategy period.

With the level of investments expected to be lower than the level of
depreciation charges and while focusing on reducing the company's working
capital, Topsil expects cash conversion in excess of 100% during the period.
Cash conversion is defined as (cash flow from operations and cash flow from
investments) / (profit/loss after tax).

The increased cash flow is expected to be used to comply with the company's
dividend policy and to reduce the company's bank debt. Going forward, it is
company dividend policy to have a pay-out ratio of about one third of the
profit for the year after tax, with due consideration, however, of the capital
structure, investment requirements and investment opportunities. As announced
in the company's Annual Report 2011, Topsil does not expect to distribute
dividends in respect of the financial year 2012 due to relocation to the new
plant.

Best regards
Topsil Semiconductor Materials A/S

Jens Borelli-Kjær Kalle Hvidt Nielsen
Chairman of the Board CEO

Further information

Any queries regarding this stock exchange announcement may be addressed to the
company's CEO through: Christina Fris Bjørling, Communications, tel.: +45 2152
1011.

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