MAIN EVENTS IN 2011
Topsil’s overall revenue amounted to DKK 367.4 million in 2011, equal to a 19.5% decline compared with 2010. Revenue was in line with the most recently announced expectations.
EBITDA amounted to DKK 35.1 million in 2011, compared with DKK 102.0 million in 2010, corresponding to an EBITDA margin of 9.6% against 22.3% in 2010. EBITDA was in line with the most recently announced expectations.
EBIT was DKK 6.0 million in 2011 against DKK 89.0 million in 2010, equivalent to an EBIT margin of 1.6% against 19.5% the year before.
Profit/(loss) before tax for 2011 came to DKK (3.3) million, which was DKK 85.1 million lower than in 2010. The loss for the year after tax was DKK (6.8) million against profit of DKK 63.0 million in 2010.
The revenue reduction was primarily owing to an unexpected, market-driven slowdown in the NTD area in mid 2011, which was particularly pronounced in the transport area, in which Topsil has a large market share, and an increasingly competitive market. At the same time, the introduction of a new improved product for the medium-voltage segment was prolonged due to a longer than expected customer qualification process.
During the second half of the year, Topsil's production was affected by inconsistent quality of raw materials for NTD production from one of Topsil's suppliers, resulting in a lower rate of utilisation and a longer production process. Topsil signed an agreement with the supplier at the end of the year, addressing the problem technically and commercially going forward.
Topsil continued to focus on developing new products, and the work to produce the next generation of FZ silicon with a larger diameter progressed during the year.
At the opening of the year, Topsil signed an agreement for the purchase of a plot for the construction of a new silicon plant at the newly parcelled Copenhagen Cleantech Park in the municipality of Frederikssund. The main part of the plant was completed during 2011 according to plan, which involves an overall investment of almost DKK 200 million, of which more than 50% was recognised in 2011 and the year before.
To adjust the cost level, Topsil cut costs in a number of areas, including by reducing the Group's headcount by 10%. The impact of this cost reduction programme will continue in 2012.
After the end of the financial period, Topsil acquired an additional 25% of the property company Cemat'70 S.A., bringing the Group's ownership interest to 78%. The acquisition of additional shares secures Topsil full right of disposal and the right to sell all or part of the property.
At the end of October, CEO Keld Lindegaard Andersen resigned and his successor, Kalle Hvidt Nielsen, took up the position as CEO on 1 January 2012.
Despite the unsatisfactory trend during the year, the Group has adequate cash flows and capital resources to implement the planned investment programme.
In line with expectations, the financial results for the year were considerably down compared to the year before, and Management considers the performance unsatisfactory.
EXPECTATIONS FOR 2012
Topsil will commence relocating production to the new plant, which will be a highlighting event of the year. At the same time, the market is only expected to gradually recover during the second half.
For 2012, Topsil expects revenue to decline by 5-10% relative to 2011. This expectation is based on the assumption of a fall of about 25% in the first half of the year followed by minor growth in the second half of the year.
EBITDA is expected to be approximately DKK 40-50 million against DKK 35 million in 2011. The implemented cost reductions will provide full-year effect in 2012, albeit moderately offset by the costs for operating in two locations in Denmark.
These expectations are based on exchange rates of DKK 550/USD 100 and DKK 190/PLN 100.
Please note that the annual report for 2011 is available electronically (as pdf) only.
Applications to this announcement to
Christina Fris Bjørling, communications, phone +45 2152 1011
