SATISFACTORY THIRD QUARTER BUT FOURTH QUARTER WILL BE CHALLENGING

“A number of factors drove our better-than-expected performance in Q3 2015. However, the resulting benefit is expected to be offset by a significantly lower level of activity in Q4, in which we are seeing ad-justed customer forecasts indicating weaker demand for power components, mainly as a consequence of economic developments in China. . Kalle Hvidt Nielsen, CEO

| Source: Cemat A/S Cemat A/S

TOPSIL SEMICONDUCTOR MATERIALS A/S

Announcement No. 12-15

Interim report, Q3 2015

Three months ended 30 September 2015

Highlights of the quarter

  • Topsil’s net revenue was up by 25% from DKK 65.8 million in Q3 2014 to DKK 82.2 million in Q3 2015. The now settled complaint case contributed to the good performance, as did earlier invoicing of sales expected in Q4. 
  • The contribution ratio was 43.1% in Q3, representing a year-on-year decline of 3.1 percentage points. The contribution ratio was adversely affected by the product mix, running-in and scale-up costs in connection with 8” production and remelt sales of DKK 3.3 million close to cost. 
  • EBITDA was a profit of DKK 12.2 million, equivalent to an EBITDA margin of 14.8% in Q3 2015.  In the same period of last year, EBITDA was a loss of DKK 3.8 million. 
  • Cash flows from operating activities were an inflow of DKK 3.6 million in Q3 2015. Cash flows from operating activities for the nine months ended 30 September 2015 were an inflow of DKK 6.2 million against an outflow of DKK 5.2 million in the year-earlier period, the change being driven mainly by the improvement in operating profit. Cash flows for investing activities were an outflow of DKK 2.4 million in Q3 and DKK 7.1 million in the nine months ended 30 September 2015. 
  • Topsil concluded an agreement on financial compensation from the sub-supplier in connection with the customer complaint case from 2014. The compensation amount agreed was DKK 4.2 million higher than the recognised receivable.
     
  • Topsil’s updated strategy will be announced in Q1 2016.

Outlook for 2015

The guidance range for 2015 is narrowed to revenue growth from 0-5% to 2-5% and EBITDA in the lower range of DKK 14-24 million.

The good performance in Q3 in part reflected timing differences, as revenue expected in Q4 was recognised in Q3. Moreover, several customers have reduced their forecasts, primarily as a result of the economic developments in China.

 

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

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Attachments

12-15 - Q3 2015 UK.pdf