YVERDON LES BAINS, Switzerland, 28 September 2018: Leclanché SA (SIX: LECN), one of the world’s leading energy storage solution companies, today announced its interim results for the half year ending 30 June 2018.
Leclanché’s revenues have more than doubled year-on-year to CHF 22.3 million from CHF 10.6 million in the six months to 30 June 2018, in line with the Company’s previously stated estimate of doubling revenues for the year 2018.
Excluding exceptional items, EBITDA losses for the period have reduced on a like-for-like basis as a percentage of revenues.
(in million CHF)
Normalised EBITDA Margin
Normalised EBITDA Margin
We expect the year-end EBITDA loss to reduce as a percentage of revenue. Most of the large projects under construction should be completed or close to be completed by end of the year and will contribute to the improvement of Company’s year-end profitability.
In the same period, the related inventories increased from CHF 12.3 million to CHF 23.1 million reflecting the growth in demand for Leclanché’s energy storage solutions and the scale of the
projects under construction.
Other operating expenses increased due to one-off costs. Personnel costs increased by 10% reflecting the recruitment of over 45 people to increase production and deliver the large scale projects that the Company is delivering.
Anil Srivastava, CEO of Leclanché, said: “In the first half of 2018, we launched the JV with Exide Industries, completed the EMS acquisition, have consolidated our debt, and secured a financing programme which will take us to being EBITDA positive in 2020. This places us in a strong position to capitalise on the tremendous opportunities in the fast-growing markets of eTransport and Stationary Energy Storage Solutions.
2018 is a year of transition for Leclanché as we deliver on our stated growth strategy. Thanks to the significant investments made in the past three years under the Growth Plan announced in 2015, the Leclanché team is now demonstrating its solid ability to deliver large-scale landmark projects.
We are on track to hit the milestone of 100 MWh of stationary storage projects in operation by end 2018, and completing tests for Electric Bus Battery Packs in India with Sun Mobility, a
leading Electric Vehicle Systems Integrator in India and in Europe with Skoda Electric.
We have been awarded projects which total over 300 MWh for deliveries through to 2019, including Master Supply Agreements in the eTransport Business that envisage more than 150 MWh of recurring annual deliveries. We are particularly encouraged by the rapid electrification trend in the marine market and we are expecting multiple project wins in the near term in this market segment.
We confirm our guidance to double our turnover for the year.
We have recruited key individuals, in particular leaders from the automotive industry, who will ensure that we deliver our projects and mitigate the obvious execution risks during this important phase of growth for Leclanché. Our solid order book and qualified pipeline of projects, underpin our confidence for 2019 and beyond. We have never been in better commercial and operational position than now.”
In the first half of 2018, Leclanché secured a significant financing programme which fully funds the business plan through to 2020 when the Company expects to be EBITDA positive.
FEFAM2, the Company’s largest shareholder, has committed a total of CHF 75 million of corporate funding and an additional CHF 50 million M&A facility to finance acquisitions and joint ventures in e-Transport and Stationary grid-based storage markets. To date, CHF 7.6 million have been drawn down from the M&A facility to finance the JV with Exide Industries in India and the EMS acquisition. In June 2018, Leclanché also converted CHF 16.5 million of its debt into equity after FEFAM received approval from the Swiss Takeover Board to convert that amount into equity. Leclanché and FEFAM are also finalising arrangements to convert a further CHF 53.4 million by Q1 2019, subject to approval by the Swiss Takeover Board.
This conversion will reduce the Company’s current debt by 75% and go a very large way towards addressing any going concern risks raised in section 5 of the Interim Condensed Financial Statements 2018. In July 2018, Leclanché began simplifying its debt structure and consolidate its debt with FEFAM, which has recently committed to extend the maturity of its debt to 31 March 2020.
This funding programme strengthened Leclanché’s balance sheet and gives the Company enough financial firepower to deliver the large scale projects currently underway and take full advantage of the opportunities in the fast growing markets of eTransport and Stationary Energy Storage Solutions.
FEFAM means: AM INVESTMENT SCA, SICAV-SIF – Liquid Assets Sub-Fund, together with FINEXIS EQUITY FUND – Renewable Energy Sub-Fund, FINEXIS EQUITY FUND – Multi Asset Strategy Sub-Fund, FINEXIS EQUITY FUND – E Money Strategies Sub-Fund (also called Energy Storage Invest) and, all these funds being in aggregate the main shareholder of Leclanché, hereunder referred to as “FEFAM”.
Stationary Storage Business Unit
eTransport Business Unit
For further details, please refer to the 2018 interim report which is available in pdf format on
the Company website: http://www.Leclanché.com/investor-relations/financial-reportspublications/interim-reports/
Headquartered in Switzerland, Leclanché SA is a leading provider of high-quality energy storage solutions designed to accelerate our progress towards a clean energy future. Leclanché’s history and heritage is rooted in over 100 years of battery and energy storage innovation and the Company is a trusted provider of energy storage solutions globally. This coupled with the Company’s culture of German engineering and Swiss precision and quality, continues to make Leclanché the partner of choice for both disruptors, established companies and governments who are pioneering positive changes in how energy is produced, distributed and consumed around the world. The energy transition is being driven primarily by changes in the management of our electricity networks and the electrification of transport, and these two end markets form the backbone of our strategy and business model. Leclanché is at the heart of the convergence of the electrification of transport and the changes in the distribution network. Leclanché is the only listed pure play energy storage company in the world, organised along three business units: stationary storage solutions, e-Transport solutions and specialty batteries systems. Leclanché is listed on the Swiss Stock Exchange (SIX: LECN).
SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9
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.
Media Switzerland /Europe:
T: +41 (0) 79 785 35 81
Media North America:
Henry Feintuch / Ashley Blas
T: +1-914-548-6924 / +1-509-494-4053
T: +49 (0) 711 947 670
Anil Srivastava / Hubert Angleys
T: +41 (0) 24 424 65 00