Leclanché announces its full year 2019 financial results and provides key financial updates
Strategic Reorganization underway, in partnership with Eneris Group, sets a clear path to deliver profitable growth
- Audited results in line with the unaudited results published on 18th May 2020;
- Strong support from Company’s largest shareholder FEFAM through a commitment to convert CHF 50.9 million of its debt into Equity;
- Fully funded business plan thanks to the Loan Agreement with Eneris Group for up to CHF 43 million for working capital;
- Worldwide business wins with combined order book exceeding CHF 90 million for delivery over years 2020 to 2021- excluding the St. Kitts project;
- Build-Own-Operate (BOO) model for St. Kitts project shall add profitable growth for 20 years and further strengthen the assets in the balance sheet of the Company.
YVERDON-LES-BAINS, Switzerland, June 5th 2020 – Leclanché SA (SIX: LECN), one of the world’s leading energy storage companies, today announces its results for the full year ending 31 December 2019 and provides further financial strengthening measures.
Anil Srivastava, CEO of Leclanché said: “We thank our largest shareholder FEFAM for confirming its commitment to convert CHF 50.9 million of its debt into equity well-before the maturity in December 2021. It allows the Company to save significant cash from interest payments and materially strengthens its balance sheet.
To launch the highly profitable Build-Own-Operate (“BOO”) business line, the St. Kitts project has been moved from a traditional turnkey EPC contract to BOO model. While Leclanché will still build the project as an EPC contractor, there will not be any revenue recognition as an EPC contractor under the BOO model. This accounting requirement will lead to a reduction of more than CHF 55 million revenue in 2020. This technical shift shall be more than offset with an average revenue recognition of circa CHF 9 million per year and a positive EBITDA of more than CHF 5 million per year for a period of 20 years under the signed Power Purchase Agreement with SKELEC, St. Kitt’s Electrical Utility. Other projects will follow each year adding recurrent positive EBITDA.”
Consolidated revenues for fiscal year 2019 were CHF 16.3 million, down from CHF 48.7 million in 2018; the EBITDA loss for the year amounts to CHF (67.9) compared to a loss of CHF (39.1) million the previous year; the net loss for the year was CHF (83.4) million compared to CHF (50.7) million in 2018.
The decrease in revenues in 2019 is mainly due to (i) delays in funding of the St. Kitts and Nevis project, (ii) delays in the financing of growth capital, which affected the completion of several projects and investments in an increase in production capacity at Leclanché’s cell facility in Willstätt, Germany. The above-mentioned reasons had a negative impact on 2019 revenues of approximately CHF 50 million.
The balance sheet total amounted to CHF 73.1 million compared to CHF 87.3 million in 2018, this decline stemming essentially from a reduction in other receivables, contracts assets and cash and cash equivalents. In addition, Leclanché SA, the Swiss legal entity, was in a negative equity situation as of December 31st, 2019 in the amount of CHF 2.1 million. Leclanché addressed this over-indebtedness situation by obtaining a subordination of CHF 29.8 million of the debt provided by FEFAM , Leclanché’s majority shareholder, which has subsequently committed to convert into equity CHF 50.9 million of the same debt.
Anil Srivastava, CEO of Leclanché said: “ We thank all our shareholders for their significant and patient investments since late 2006 in developing our Energy Storage Business based on in-house Lithium Cells and Systems.
The economic uncertainties remain high because of the COVID-19 virus. While following the local health advisories in all countries we operate, we had to reduce the production for the past few months. Thus far, we have not had any order postponement or cancellation. We shall take all prudent measures as the situation evolves.”
Notwithstanding the challenges due to Covid-19, we are confident that the Company is on a clear path to deliver sustainable profitable growth thanks to:
- The access to nearly 1 GWh capacity planned in Germany by Q1 2022 and a further 1.4 GWh by end-2024 in Poland from the recently announced partnership agreement with Eneris Group;
- With the introduction of the new G-NMC 60Ah cells, 210 Wh/kg and 420 Wh/liter, in production from April of this year, Leclanché has secured its position among the best in the industry in terms of energy density and cycle lifetime. These new cells, combined with next-generation M3 Modules to be operational in early 2021, results in the cost per kWh being reduced by more than 25% over 2018-2019 pricing levels. With three shifts of continuous production planned in Q4 2020, the Company is set to deliver positive Gross Margin in its eTransport business.
For further details, please refer to the full 2019 annual report which is accessible on the Company’s web site.
For more information, write to email@example.com or visit www.leclanche.com.
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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:
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Anil Srivastava / Hubert Angleys
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 FEFAM means: AM INVESTMENT SCA, SICAV-SIF – Illiquid 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”.