Ad-hoc | 21 August 2013 07:10
Leclanché SA / Key word(s): Half Year Results
21.08.2013 07:10
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press Release
Leclanché SA reports first half-year 2013 financial results
- Consolidated revenues decreased by 6.2% to CHF 7.9 million
- EBITDA for H1 2013: CHF -4.9million in line with guidance
- New Chief Executive and senior management team in place
- Funding secured (subject to shareholder approval at EGM)
- Production line speed issue, identified, corrected and successfully
tested; solution in validation phase
- Product launches for 2014 on schedule
- Unchanged guidance: reduced EBITDA loss in 2013; target break-even in
2015
- Publication of Interim Report
Yverdon-les-Bains, Switzerland, 21 August 2013 - Leclanché S.A. (SIX Swiss
Exchange: LECN), specializing in the production of large-format lithium-ion
cells and energy storage solutions, announced today its unaudited financial
results for the first half-year 2013. Total consolidated revenues reached
CHF 7.9 million for the six months ended 30 June 2013, a 6.2% decrease from
CHF 8.4 million in the same period last year. While revenues from the
distribution and stationary business units declined, revenues from portable
business unit increased from CHF 4.6 million to CHF 5.0 million. Taking
into account the lower revenues and the finance costs arising on the
maturity of the bridge loan that was granted to the Company in November
2012 by Bruellan Corporate Action Fund (Bruellan Loan), the net loss
amounted to CHF 6.5 million versus CHF 5.4 million in same period in 2012.
Financial Overview
Operating loss before interest, tax, depreciation and amortization (EBITDA)
was CHF -4.95 million for the period, compared to CHF -4.45 million for the
same period in 2012. This figure is in line with the previous guidance
which stated that EBITDA loss would not exceed CHF -5.5 million. EBITDA for
the period under review from portable and distribution is CHF0.96 million,
an increase of 98.3%, while the loss from the stationary business is CHF
-3.24 million up by 24.2% due to lower revenues and higher direct costs.
The net loss of CHF 6.5 million also reflects a charge of CHF 0.7 million,
mostly due to the fees arising on the maturity of the Bruellan Loan. At the
end of the period, Leclanché employed 87 full time equivalent (FTE)
employees versus 113 in 2012. The reduced FTE figure reflects, in part, the
reduced working time program implemented in Willstätt between December 11,
2012 and July 31, 2013.
In the first six months of 2013, the company operated under very tight
liquidity conditions and was able to stretch its resources with the support
of Bruellan Corporate Governance Action Fund ('Bruellan'), who provided a
facility extension of CHF 1.5 million to their original loan of EUR 5
million on 21 May 2013. This has since been repaid. As of the end of June
2013, Leclanché had orders in hand of CHF 6.8 million, compared to CHF 9.8
million as of December 2012. The orders are for delivery as of the June 30,
2013 until 2016.
Unchanged Guidance
Overall for 2013, and subject to the continued execution of its turnaround
plan and subject to the receipt of the relevant shareholder approvals
(discussed below), the Company expects that operating losses at EBITDA
level (i.e. before interest, tax, depreciation and amortization deductions)
will be below CHF10 million compared to CHF12.9 million in 2012.
With the funding secured from Precept, and subject to the receipt of the
relevant shareholder approvals, the Company will be able to proceed with
the execution of its turnaround plan and expects to break-even during 2015
at the EDITDA level. However, these projections remain heavily dependent on
a successful launch of the Company's stationary product range and the
continued execution of the turnaround plan.
Leclanché's goal to be among the first movers in Europe in the stationary
storage market - home and industrial - remains intact, provided the company
is able to successfully launch its stationary products and is able to
pursue its product road map.
Key events in 2013
- On July 9, 2013, Leclanché announced it had it signed a Senior Secured
Convertible Loan Agreement for CHF17 million ('Loan Agreement')
maturing in June 2016 from Precept Fund Management SPC on behalf of
Precept Fund Segregated Portfolio ('Precept' or 'Lender'). This
financing has been secured after a long and difficult fund raising
effort.
- On 12 August 2013, Leclanché S.A. also announced the appointment of Mr.
Joseph Mangion as Chief Executive Officer, Mr. Eric Wilkinson as Deputy
Chief Executive Officer and Mr. Andrew Firmston-Williams as Chief
Financial Officer.
- First batches of Leclanché's large-format lithium-ion cells, the 17300
format cells which are manufactured on its new production line in
Willstätt, have been validated and certified.
- The company assembled the first home storage modules (HS3200 modules
with 17300 format cells), which are now in the test phase. These are
expected to be available for commercial launch in Quarter 1, 2014. The
industrial storage systems using the large-format lithium-ion cells
(i.e, 17300 format) will be developed in conjunction with a third party
partner and are expected to be available for commercial launch in the
first half of 2014.
- The company has addressed the speed issue on its new production line,
which related to certain crucial machine components being out of
specification. This has been identified, corrected and successfully
tested. The solution is now in the validation phase and is expected to
be resolved by the end of 2013.
- In addition, the Company made progress in the development of electrodes
using high voltage cathode materials. The development of this next
generation product range follows the Company's product development road
map objectives. However, the ongoing development of this product and
its commercial availability remain uncertain, and the Company makes no
commitment as to if and when this product will be incorporated into
commercial production.
Upcoming events
At its upcoming Extraordinary General Meeting to be held on 26 August 2013
in Yverdon-les-Bains, shareholders will be asked to approve a number of
resolutions in connection with the above mentioned medium term financing of
the company and its restructuring. These resolutions, which the Board of
directors strongly recommends to approve, are outlined in the company's
press release of August 2, 2013. The agenda of the Extraordinary General
Meeting of shareholders can be downloaded at the Company's web site:
http://www.leclanche.eu/img/EGM_Agenda_Leclanche_ENG.pdf
Leclanché S.A. Consolidated Figures for the 1st half-year 2013
in million CHF 2013 2012
[IFRS] 1st half-year 1st half-year
Revenue 7.91 8.43
EBITDA -4.95 -4.45
EBIT -5.88 -5.39
Profit / Loss -6.52 -5.41
At June 30 2013 At June 30 2012
Equity Capital 29.84 40.49
As percentage of total assets 61.4% 79.9 %
Earnings per share -1.16 -1.08
Employees (FTE) 87 113
Publication of interim results
Leclanché SA published today its Interim Report 2013, which is available in
pdf format on the company's web site:
http://www.leclanche.eu/page/financial-reports
Analyst and investor call
Leclanché S.A. will discuss its first half-year 2013 financial results
during a live audio webcast taking place Wednesday, August 21, 2013 at 2:30
PM CET.
The audio webcast, including the slides, will be accessible on the
Leclanché web site and by using the following link:
http://leclanche210813-live.audio-webcast.com
A replay of this teleconference will be made available one hour after the
conference.
Analysts and investors wishing to ask questions during the webcast should
use the following conference-ID: 463 66 82 and one of the dial-in numbers
indicated below:
- Switzerland: + 41 (0) 22-592-73-12
- UK: +44-207-153-2027
About Leclanché
Leclanché's strategy is to become 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
consortiafocusing 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 one 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.
21.08.2013 News transmitted by EQS Schweiz 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
Valor: A1CUUB, 812950
Listed: SIX
End of Announcement EQS Group News-Service
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