Cemat — Report Publication Announcement 2015

Mar 31, 2016

“We have now taken stock of the 2013-2015 strategy period. The efficiency
measures implemented have helped us to achieve important milestones, but we
still need to further streamline our business in order to bolster earnings.
Therefore, we have decided to restructure our operations, terminate loss-making
activities and enter into strategic partnerships to further strengthen our
business.
These measures gave rise to substantial impairment losses in 2015, and our 2016
results will be adversely affected by non-recurring costs. So even though we
met our revenue and earnings guidance for 2015, the DKK 90.1 million loss for
the year was not satisfactory”.
Kalle Hvidt Nielsen, CEO

                                            Company announcement no. 1/ 2016
                                                        CVR no.: 24 93 28 18
                                                               31 March 2016

TOPSIL SEMICONDUCTOR MATERIALS A/S
Annual Report 2015

HIGHLIGHTS OF THE YEAR

-- Revenue was up 5% to DKK 287.3 million in 2015, while, according to Yole
Développement, the market declined by 9%.
-- The contribution ratio was 47.6% in 2015, a year-on-year decline of half a
percentage point. The lower contribution ratio was partly due to the sale
of a quantity of remelt at close to cost and the running-in and scale-up
costs related to 200 mm production. Adjusted for this, the contribution
ratio increased relative to 2014.
-- EBITDA came to DKK 17.6 million, compared with a loss of DKK 9.4 million in
2014.
-- Topsil generated a cash inflow from operating activities of DKK 7.0 million
in 2015, compared with an outflow of DKK 6.3 million in 2014. Cash flows
were boosted by higher earnings and prepayments from a customer.
-- Consolidated goodwill was written down by DKK 17 million and the assets in
the Polish subsidiary by DKK 48 million.
-- During the current 2016-2020 strategy period, activities will be further
streamlined through the restructuring of loss-making operations and the
formation of strategic partnerships. The target is to grow revenue by an
average 5% p.a. during the strategy period and to increase the EBITDA
margin from 6% in 2015 to 15-20% in 2020.

OUTLOOK FOR 2016
The recently launched strategy will create a stronger platform for future
operations and thus help boost earnings from 2017. The strategic measures
include:

-- Measures to grow sales of FZ and EPI products.
-- Release from a burdensome raw materials contract and concurrent signing of
a new contract on up-to-date market terms.
-- Restructuring of loss-making operations and continued optimisation and
streamlining of production.

Most of these strategic measures will be implemented already in 2016, and
results for the current year will be impacted by this.

In 2016, Topsil expects to generate revenue in line with the 2015 level and
EBITDA before strategy-related costs of DKK 15-25 million. Strategy measures
are expected to impact EBITDA by DKK 65 million, taking EBITDA after strategic
measures to a loss of DKK 40-50 million.

Non-recurring costs mainly include costs relating to being released from
existing raw materials contracts, a write-down of inventories to reflect the
new sourcing prices and costs associated with the strategic restructuring of
loss-making operations. Around one third of the non-recurring costs will have
no cash effect.

Any queries regarding this company announcement may be addressed to the
company's CEO through Susanne Hesselkjær, Executive Secretary, tel. +45 2926
6752.

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

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