CHARTING OUR COURSE FOR THE NEXT FIVE YEARS

“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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Attachments

Topsil_AR15_UK_web.pdf