FOCUS NOW ON OPTIMISING AND SELLING THE PROPERTY PORTFOLIO

CEMAT A/S
Interim report, Q2 2016
1 January-30 June 2016 

HIGHLIGHTS OF THE QUARTER

• On 17 June, the sale of Topsil's silicon business to GlobalWafers was approved at an extraordinary general meeting, and the listed company Topsil Semiconductor Materials A/S with the remaining activities changed its name to Cemat A/S.
   
• The sale was completed as of 1 July, and in immediate continuation of the divestment, the costs of Cemat were adjusted by measures including severance agreements with the members of the Management Board and by reducing the number of members of the Board of Directors. 
   
• The consideration amounted to DKK 355 million on a debt-free basis, and after completion of the transaction, repayment of bank debt and the adjustment of the cost level, the company expects to have excess liquidity allowing for DKK 120 million to be returned to the shareholders of Cemat.
   
• As the transaction was not completed until in Q3 2016, this H1 report must be divided into continuing and discontinued operations. 
   
• EBITDA from the property business was DKK 1.9 million in Q2 2016 (Q2 2015: DKK 1.7 million). 
   
• A profit of DKK 33.6 million was posted for Q2 2016 and a loss of DKK 58.8 million for H1 2016, of which DKK 33 million was attributable to release from a supplier contract and DKK 7.1 million to impairment of the assets of the silicon business. 

OUTLOOK FOR for 2016

• Revenue for Cemat A/S is expected to amount to DKK 36 million in 2016, assuming that the Polish silicon business (Topsil GlobalWafers) stays on as a tenant throughout 2016 and purchases utilities (hydrogen, power, water, etc.) from Cemat'70 at the same level as previously.
   
• EBITDA generated by the Polish property business (Cemat'70) is expected to be around DKK 6 million. The costs of Cemat A/S will be significantly higher than expected in the coming years as the restructuring took place in the middle of the year. 
   
• For the year as a whole, EBITDA is expected to amount to a loss of DKK 15 million, impacted by restructuring costs of approximately DKK 12 million. In this estimate, the operating costs of Cemat A/S before restructuring costs are expected to be DKK 9 million, which, as described in announcement 28/16 of 3 August 2016, is expected to be reduced to approximately DKK 2 million in the coming years.

The guidance is based on an exchange rate of DKK 170/PLN 100.

The full text of the announcement is attached in PDF.

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.

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

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Vedhæftede filer:

30-16 Q2 2016-eng.pdf