Ad-hoc | 5 March 2013 07:40
Leclanché SA / Key word(s): Final Results
05.03.2013 07:40
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press Release
Leclanché SA reports 2012 financial results
- Total revenues of CHF 16.1 million, up 20%
- 150 energy storage modules in the market
- Net loss of CHF 15.2 million
- Implementation of cash preservation measures and turnaround plan
- Publication of Annual Report 2012
Yverdon-les-Bains, March 5, 2013 - Leclanché S.A. (SIX Swiss Exchange:
LECN), a Swiss company specialized in the production of large-format
lithium-ion cells, announced today its financial results for the year 2012
and also provided a strategic business update. Total consolidated revenues
increased to CHF 16.1 million, up 20.1% compared to CHF 13.4 million in
2011, mainly due to a 177% increase of its business of large-format
lithium-ion cells and systems.
The net loss amounted to CHF 15.2 million in 2012, compared with CHF 11.6
million in 2011. The higher than anticipated loss was mainly due to delays
in the ramp up of the new production line of one production step and in the
development of Leclanché's home storage modules, resulting in a lower than
anticipated order intake. In view of the resulting liquidity issue,
Leclanché took cash preservation measures, obtained a bridge loan and is
now implementing a Turnaround Plan. Based on current cash flow forecasts,
Leclanché believes that it will be able to meet all of its obligations
until April, 2013. To cover its short and medium funding needs, Leclanché
is actively investigating different options with the support of its
financial advisor, Kepler Corporate Finance.
Leclanché's Turnaround Plan aims to achieve 5 key objectives: reducing
costs by streamlining the organisation, strengthening key management
functions, particularly in sales and production, applying a stronger focus
on 'go to market' processes for Leclanché's Lithium-ion storage systems,
establishing key alliances to accelerate the market capture for Leclanché's
products and maximizing the contribution from existing businesses.
The Board of Directors and the management believe that the successful
implementation of these various measures, including the financing effort,
will allow Leclanché to overcome its current difficulties and take
advantage of the upcoming market opportunities.
Strategy
Leclanché's strategy is to expand its position as one of the leading
European lithium-ion cell producers and solution providers for lithium-ion
energy storage systems for the storage of renewable energy in Europe. The
company's initial strategic priority is on stationary home residential
electric energy storage applications and on expanding into the stationary
industrial and grid electricity storage markets.
Leclanché remains fully convinced that it has the right technology and
products to address the energy storage market. This market, which is still
at an early stage so far, is expected to evolve soon into a major market
opportunity worth several hundred millions Euros, if not billions. Energy
storage is a necessity to effectively use solar and wind energy.
For this upcoming market opportunity, Leclanché has developed a unique cell
technology with a number of differentiating factors: built in safety
element with a flexible ceramic separator, high calendar life and
competitive, highly automated, production process. The 150 modules already
delivered so far have met customer expectations and contribute to the
further validation of the Leclanché Lithium Ion storage technology.
Key developments in 2012
- Commissioned its large production line for Lithium Ion cells in
Willstätt Germany. The total investment of CHF 20 million in machinery
resulted in one of the most modern production lines. The ramp up
process started mid-2012. First batches of cells have been produced and
are in validation tests.
- Capital Increase with total gross proceeds of CHF 28 million in new
shares and CHF 4 million in warrants. This funding was largely used for
payments of the machinery, the investment into the development of the
storage modules as well as for increasing our market presence.
- Launch of the home storage module HS 3200 at the Intersolar in Munich.
This new module incorporates already the large cells produced on the
new production line. The module has a capacity of 3.2 kWh and can be
stacked up to 12.8 kWh. The module enables an increase in self
consumption of the own produced solar energy.
- Production of cells for more than 150 storage modules for industrial
application sold by Leclanché and our partner ads-tec. These cells have
been produced in the company's pilot line and delivered throughout the
year to ads-tec for the assembly of the modules. These modules are now
in the field and working in pilot installations of solar, wind and
utility.
- First delivery of test systems to Schüco, a leading solar modules
company in Germany.
- Successfully passed the BATSO safety test performed by the German TüV.
It confirms Leclanché's strategic priority to build one of the safest
Lithium Ion cells in the market, a key issue for high energy density
cells.
- Leclanché's patented lithium ion technology received a further
validation as it won the Global Cleantech Cluster Association (GCCA)
2012 award in the 'Energy Storage' category. The GCCA Award assesses
the most promising later stage companies across the globe and selects
the Top 10 winners in each category from an original pool of 4500
eligible companies represented by the GCCA's 46 member clusters,
including swisscleantech.
- Entered into a government funded research program together with
Siemens, ZSW and Südchemie for the development of next generation cells
for special storage applications.
- Leclanché GmbH, obtained a EUR 5 million/CHF 6 million bridge loan from
Bruellan Corporate Governance Action Fund to cover its short term
funding needs. The loan, with an extended maturity until end of June
2013, is secured with assets of Leclanché GmbH.
Subsequent events in 2013
- Leclanché and Schüco signed a new co-operation contract for Lithium Ion
storage systems. Leclanché will design and produce storage systems to
address the solar market today already developed by Schüco, who will
leverage its significant marketing and sales force to promote the
Leclanche storage products. Development cost will be shared by both
companies. The first systems are expected to be shipped to end users in
2014.
- The Board of directors appointed Talisman Infrastructure Ventures LLP
(TIV) to work with the management to lead a turnaround process for
Leclanche SA.
Financial highlights
Total consolidated revenues reached CHF 16.1 million in 2012, an increase
of 20.1% compared to CHF 13.4 million in 2011. Revenues of Leclanché's
large-format lithium-ion cells and storage systems, including grants,
reached CHF 3.5 million, an increase of 177% compared with CHF 1.3 million
in 2011. Leclanché's portable business reached CHF 8.8 million, an increase
of 10.9%. As anticipated, the distribution business declined by 10.2% to
CHF 3.8 million.
The net loss reached CHF 15.2 million in 2012, compared with CHF 11.6
million in 2011. This was largely due to the installation and ramp up cost
of the new business as well as delays in the ramp up of the new production
line and in the development of Leclanché's home storage modules, as well as
a lower than anticipated order intake. Diluted earnings per share were CHF
-2.82 compared with CHF -3.58 in 2011. Headcount increased slightly to 57
in Yverdon and 66 in Willstätt, to a total of 117 full time employees (FTE)
in 2012 compared to 113 in 2011.
The company believes that the bridge loan will enable Leclanché SA and
Leclanché GmbH to pursue their activities until the end of April 2013.
The orders in hand have been adjusted downwards and represent today CHF 9.8
million for all business units, compared with CHF 29.8 million one year
ago. This revised order intake takes into account orders already delivered
in 2012 and reflects as well changes in the new contract with Schüco,
announced in February 2013.
Annual Report 2012 and Annual Shareholders Meeting
Leclanché published today its Annual Report 2012, which can be downloaded
on the company's web site. The company's Annual Shareholders Meeting will
take place in Yverdon on April 3, 2013.
Outlook
Leclanché' s current outlook focusses on three priorities: cover its medium
term funding needs, finalize the ramp-up of its new production unit by
solving some technical issue with one of the sophisticated machines on the
new production line, accelerate the market capture for its products by
ensuring the company's products are market ready and, at the same time,
maximize the contribution from existing businesses.
Regarding its funding need, no definitive solution has been secured at this
stage. There is accordingly a significant uncertainty with respect to the
going concern assumption, particularly in relation to the certainty and
timing of future financing
From an operational point of view, Leclanché expects to have its cells
validated during Q2 2013. Home storage modules are expected to be available
as prototypes in Q2/Q3 2013. As soon as the modules are validated with the
CE marking, Leclanché will deliver them to its B2B customers for field
tests. These tests may take several months. Only after their completion,
can Leclanché expect significant orders. The company is notably already
been approached by several potential customers for industrial storage,
especially where a high cycle rate is necessary. In addition, the German
government is discussing a subsidy program for storage of Euro 50 million
for 2013, from which the company expects to benefit.
Leclanché expects gradual progress in its operational plan. Since the
Lithium Ion storage technology is an emerging and new market and because of
the uncertainty of some government regulation, it might not be
straightforward. However the company remains confident that its unique
technology will enable it to take advantage of this large market
opportunity.
Analyst and investor meeting
Leclanché S.A. will discuss its full-year 2012 financial results and
achievements during an analyst and investor meeting taking place today,
Tuesday, March 5th, 2013 at the Storchen Zürich, Weinplatz 2, 8001 Zürich.
In addition, a live audio webcast of the meeting will be accessible on the
Leclanché web site: www.leclanché.com. A replay of this teleconference will
be made available one hour after the conference.
Analysts and media wishing to ask questions during the conference are
invited to call at 14:15 CET (13:15 GMT/ 9:15 EST) using the following
conference-ID: 4605014 and dial-in numbers:
- Europe: +41 (0) 22 592 73 12
- UK: +44-207-153-2027
- USA: +1-480-629-9673
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
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.
Consolidated income statement for the year ended December 31, 2012
31.12.2012 31.12.2011
KCHF KCHF
Sales of goods and services 12'907.0 12'183.0
Other income 3'222.8 1'207.7
Total income 16'129.8 13'390.7
Raw materials and consumables used -10'283.7 - 6'198.1
Personnel costs -10'765.0 -9'989.3
Depreciation and amortization expense -1'909.0 -1'812.5
Other operating expenses -7'859.9 -6'991.0
Finance costs -235.2 -18.6
Finance income 7.5 23.4
Loss before tax for the year -14'915.4 -11'595.4
Income tax 0.0 0.0
Loss for the year -14'915.4 -11'595.4
Earnings per share (CHF)
- basic -2.82 -3.58
- diluted -2.82 -3.58
Consolidated balance sheet at December 31, 2012
31.12.2012 31.12.2011
KCHF KCHF
ASSETS
Non-current assets 33'932.4 17'537.4
Property, plant equipment 4'397.1 4'640.8
Intangible assets 249.9 250.4
Other financial assets 38'579.5 22'428.6
Current assets
Inventories 4'710.6 4'217.6
Trade and other receivables 4'917.6 4'092.8
Cash and cash equivalents 3'936.2 2'617.2
13'564.4 10'927.6
TOTAL ASSETS 52'143.9 33'356.2
EQUITY AND LIABILITIES
Share capital 28'150.7 16'179.2
Share premium 47'178.0 32'365.2
Accumulated value for share-based payment 983.8 556.8
Other reserves 16'800.6 16'800.6
Translation reserve -2'280.3 -1'970.7
Actuarial loss on post-employment benefit obligations -14'176.5 -14'527.0
Accumulated losses -41'667.5 -26'752.1
Total Equity 34'988.9 22'652.0
Non-current liabilities 70.0 90
Provisions 5'268.3 5'656.9
Defined benefit pension liability 5'338.3 5'746.9
Current liabilities
Provisions 130.0 20.0
Borrowings 6'243.4 0.0
Derivative financial instruments 0.0 37.0
Trade and other payables 5'443.3 4'900.3
11'816.7 4'957.3
Total Liabilities 17'155.0 10'704.2
TOTAL EQUITY AND LIABILITIES 52'143.9 33'356.2
Consolidated statement of cash flows for the year ended December 31, 2012
31.12.2012 31.12.2011
KCHF KCHF
Operating activities
Loss before tax -14'915.4 -11'595.4
Non cash adjustments:
Depreciation of property, plant and equipment 1'122.3 1'157.1
Amortization of intangible assets 786.7 655.4
Non-realized foreign exchange differences -335.5 -902.8
Recognized expense for stock option plan 427.0 299.0
Interest expense 234.7 17.6
Interest income -7.5 -23.4
Movement in provisions 90.0 -18.8
Employer's contribution to defined benefit plan -374.4 -399.6
Pension cost 336.3 279.8
Working capital adjustments:
In/Decrease in trade and other receivables -824.8 -603.9
In/Decrease in inventories -493.0 -544.1
In/Decrease in trade and other payables 506.1 -122.3
Net cash flows used in operating activities -13'447.4 -11'801.4
Investing activities
Purchase of property, plant and equipment -17'494.9 -13'663.7
Investment in other financial assets 0.5 -0.8
Capitalized development expenses -565.4 -277.4
Interest received 7.5 23.4
Net cash used in investing activities -18'052.4 -13'918.5
Financing activities 23'171.4 -
Net proceeds from share capital increase 3'612.8
Net proceeds from warrants exercised - -258.0
Net proceeds from borrowings 6'038.5
Interest paid -29.9 -17.6
Net cash from/ (used in) financing activities 32'792.9 -275.6
Increase / Decrease in cash and cash equivalent 1'293.0 -25'995.5
Cash and cash equivalent at 1 January 2'617.2 28'640.8
Cash and cash equivalent at 31 December 3'936.2 2'617.2
Effect of exchange rate changes -25.9 28.1
Variation 1'293.0 -25'995.5
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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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