Interim report Q1, three months ended 31 March 2014

INCREASED LEVEL OF ACTIVITY IN JAPAN AND CHINA "We continue to execute Topsil's strategy. Our revenue grew by almost 4% year on year in Q1, and we increased our level of activity in Japan and China in order to strengthen our market position. Prices on the power market remained squeezed. Our efficiency efforts are bearing fruit, and that had a positive impact on Q1 earnings." Kalle Hvidt Nielsen, CEO

| Source: Cemat A/S


  • Revenue totalled DKK 73.4 million in Q1, up from DKK 70.7 million in Q1 2013 (+3.7%). 
  • The contribution margin was 48.7%, against 49.6% in the year-earlier period and 46.3% for 2013 as a whole. The year-on-year improvement was due to a number of production efficiencies, which were partly offset by increased price pressure.
  • Other external costs and staff costs were DKK 32.5 million, up from DKK 31.7 million in Q1 2013. This marginal increase in the cost base related to a number of new production staff that were hired to handle a growing production volume. Interim costs in the region of DKK 1 million were incurred in the quarter in relation to moving production and to production at two locations in Frederikssund.
  • Operating profit before depreciation and amortisation (EBITDA) was DKK 3.3 million in Q1 2014 against DKK 3.4 million in Q1 2013, bringing the EBITDA margin to 4.4% against 4.8% in the year-earlier period.
  • Working capital increased by DKK 7.3 million in Q1 and was DKK 147.4 million as at 31 March 2014. The increase mainly represented an increase in trade receivables and an increase in inventories that was partly caused by a change in the transport procedures for incoming raw materials.
  • Cash flows from operating activities were an outflow of DKK 10.4 million in Q1 2014 against an outflow of DKK 1.4 million in Q1 2013. The cash flow from investing activities was an outflow of DKK 4.8 million. 
  • At the beginning of the year, Topsil signed a sales and market development agreement with a Japanese partner for the strategically important Japanese market.
  • In April, framework agreements were signed with two large Chinese customers. The agreements concern the supply of silicon for energy infrastructure projects and for transportation purposes from 2014 to 2017.



The Group retains its guidance for the full year. Topsil expects revenue for 2014 to be on a level with 2013, which was favourably affected by one-time orders in Q2 for about DKK 10 million. For 2014, EBITDA is expected, as a minimum, to be unchanged from the 2013 level, as efficiency improvements and cost reductions in production and the supply chain are expected to compensate for the lower prices.


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

The announcement is attached in PDF.


         Please direct any questions regarding this announcement to the Company's CEO and CFO through Ms. Christina Fris Bjørling, Communications Manager, tel.: +45 2152 1011,