Ad-hoc | 5 November 2012 07:14
Leclanché SA / Key word(s): Interim Report
05.11.2012 07:14
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press Release
Leclanché SA provides a mid-period business update
- Ramp-up of new production line and order intake slower than planned
- Revised guidance for 2012 and adoption of cash preservation measures
- Investigating options to raise additional funds
- First energy storage solutions have met customer expectations
Yverdon-les-Bains, 5 November 2012 - Leclanché S.A. (SIX Swiss Exchange:
LECN), specialized in the production of large-format lithium-ion cells and
energy storage solutions, today gave an update on the development of its
business. During the third quarter of 2012, Leclanché's business suffered
from a slower ramp-up of the new production line as well as a delay in the
roll-out of its home storage modules and experienced a lower than
anticipated order intake. As a result, Leclanché is revising its 2012
guidance and taking cash preservation measures. On the other hand, the
first storage systems delivered so far have met customer expectations and
contribute to the further validation of the Leclanché Lithium Ion storage
technology.
The slower ramp-up of the new production line is due to a speed issue in
one of the production steps. The machine supplier is currently working on
the issue with a team of specialists and is aiming to attain the specified
quality and speed at the latest by the end of the year. Accordingly, the
number of cells produced so far is significantly below the planned
quantities, even though several batches of the cell could be processed in
automatic mode through the whole process chain.
At the same time, Leclanché experienced a lower than anticipated order
intake, for three different reasons: delays in the implementation of
industrial storage projects currently in discussion and awaiting client
confirmation; delays in the development of specific modules for home
storage applications with our partners; a slower than anticipated general
market uptake for home storage solutions. This last factor could lead our
partner Schüco to revise the ordered quantities.
Leclanché might therefore have to adjust the amount of its orders in hand
and is revising its 2012 guidance. Despite an increase in revenues expected
this year - particularly in the Lithium Ion Technology unit - the net loss
in 2012 will now be higher than last year. Cash at the end of October 2012
represented CHF 2.9 million, which in the absence of new funds being
raised, would allow for normal operations to continue until approximately
mid-December 2012.
The Board of Directors and Management of Leclanché are monitoring the
situation very closely and have initiated numerous contacts with potential
industrial partners and investors to secure additional financing. While
some of the negotiations were and still are encouraging, no definitive
support has been secured at this date.
Therefore, while continuing very actively to work on the closing of any
financing transaction, Leclanché has decided to put in place cash
preservation measures immediately, especially by introducing reduced shifts
and working hours.
Leclanché will provide timely updates on the development of its business.
Business highlights for the third quarter
In the area of Lithium Ion Technology Leclanché delivered cells for storage
racks for an autonomous village, and storage racks for a wind energy
project and for a utility have been completed and will be delivered within
the next few weeks. Leclanché and its partner ads-tec sold over 150 HS Pro
modules so far for industrial storage applications. These modules integrate
the Leclanché Lithium Ion Titanate cells.
The collaboration with Nedap to address the energy storage market with
'PowerRouter' and the Leclanché Lithium Ion Technology is on-going. Both
companies expect to have compatibility and market readiness by first half
of 2013.
In order to broaden distribution in the home storage market Leclanché is
currently setting up an additional market approach in collaboration with
Talesun, a leading Chinese solar panel manufacturer. This additional market
offering should be in place as of January 2013.
About Leclanché
Leclanché's strategy is to expand its position as one of the leading
lithium-ion cell producers and solution providers for renewable energy
storage systems in Europe. Its strategic priorities are stationary home
electrical energy storage applications and expansion into the stationary
industrial and grid electricity storage markets. Through participation in
research consortia focusing on hybrid and E-mobility applications,
Leclanché is positioned to take advantage of new market opportunities.
Through a unique, patented ceramic separator technology and focus on
lithium-titanate technology, Leclanché manufactures large-format
lithium-ion cells, optimized for safety and cycle-life, in a fully
automated production process. The newly installed production line will have
an annual capacity of 1 million cells or 76 MWh.
Leclanché was founded in 1909 in Yverdon-les-Bains. Through the integration
of a spin-off from the Fraunhofer-Gesellschaft in 2006, the company evolved
from a traditional battery manufacturer to become a leading developer and
manufacturer of lithium-ion cells in Europe. Leclanché currently employs
120 staff and is listed on the SIX Swiss Exchange (LECN). The company has
its headquarters in Yverdon-les-Bains (Switzerland) and production
facilities in Willstätt (Germany).
www.leclanche.eu
Media contact:
Christophe Lamps, Dynamics Group S.A.: Telephone: +41 79 476 26 87,
cla@dynamicsgroup.ch
Contact for German media:
Markus Wieser, CNC AG: Telephone: +49 89 599 458 114,
markus.wieser@cnc-communications.com
Disclaimer
This press release contains certain forward-looking statements relating to
Leclanché's business, which can be identified by terminology such as
'strategic', 'proposes', 'to introduce', 'will', 'planned', 'expected',
'commitment', 'expects', 'set', 'preparing', 'plans', 'estimates', 'aims',
'would', 'potential', 'awaiting', 'estimated', 'proposal', or similar
expressions, or by expressed or implied discussions regarding the ramp up
of Leclanché's production capacity, potential applications for existing
products, or regarding potential future revenues from any such products, or
potential future sales or earnings of Leclanché or any of its business
units. You should not place undue reliance on these statements. Such
forward-looking statements reflect the current views of Leclanché regarding
future events, and involve known and unknown risks, uncertainties and other
factors that may cause actual results to be materially different from any
future results, performance or achievements expressed or implied by such
statements. There can be no guarantee that Leclanché's products will
achieve any particular revenue levels. Nor can there be any guarantee that
Leclanché, or any of the business units, will achieve any particular
financial results.
05.11.2012 News transmitted by EquityStory AG.
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Language: English
Company: Leclanché SA
Av. des Sports 42
1400 Yverdon-les-Bains
Switzerland
Phone: +41 (24) 424 65-00
Fax: +41 (24) 424 65-20
E-mail: investors@leclanche.com
Internet: www.leclanche.com
ISIN: CH0110303119, CH0016271550
Swiss Security Number: A1CUUB, 812950
Listed: SIX
End of Announcement EquityStory News-Service
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