Annual General Meeting 26 th July 2017 Yverdon-les-Bains, Switzerland 0 company confidential – 2016
Agenda ▪ 2016 Achievements ▪ 2016 Financial Summary ▪ 2016 Disappointments ▪ Solid foundation for growth ▪ Strategic transformation of the business ▪ Outlook 1 1 company confidential – 2017
Leclanché addresses high growth end-markets Utility-scale generation Commercial & industrial eTransport & microgrids battery systems • Commercial, industrial & residential • Micro-grids: renewable integration • Fleets of buses, trains & trams • Solar lighting, medical, telecoms, • Grid stabilization and peak shifting • Ferries and tugboats security & defense • Forklifts, cranes, mining vehicles • Branded consumer (selected markets) 11.3 5.0 12.0 8.0 4.2 6.0 4.0 9.0 6.0 3.0 GWh GWh GWh 6.0 4.0 2.0 1.7 0.9 3.0 2.0 1.8 1.0 0.0 0.0 0.0 2016 2020 2016 2020 2016 2020 Source: Navigant Research 2 2 company confidential – 2017
Leclanché serves different markets with a common technology stack solution designed for higher margins Asset planning & management software Commercial & industrial Utility-scale battery systems generation & eTransport microgrids Solutions delivery as EPC *, including selective financing Leclanché is no longer Systems integration and engineering expertise just an upstream Li-Ion technology provider. Battery management system (BMS) It is one of the most vertically integrated ESS provider in the world! Module design Proprietary Lithium Titanate Third-party battery Proprietary G-NMC * Oxide (LTO) cells for leading cells and other energy cells for energy performance in long-life and storage technologies intensive applications rapid-charge applications *Graphite anode and Nickel-Manganese-Cobalt cathode 3 3 company confidential – 2017 *Engineering Procurement and Construction
2016 Achievements • 56% growth, in line with the guidance given • 16X increase in order intake, currently >85 MWh Orders during the interim results • >450 MWh in Order Pipeline • 2.5x over the year 2014 • 22 MWh of projects under construction Order Book Revenue • Steady-state EBITDA Loss reduced by 54% Secured USD 23M of project finance from compared to 2015 SGEM, a Golden Partner controlled entity • CHF 8M Equity in Marengo project in • Reduced Capex by 35% over previous year Chicago • Loss per share reduced by 28% vs. 2015 • USD 15M construction loan for IESO project in Canada Reduction of loss Project Finance 4 4 company confidential – 2017
Agenda ▪ 2016 Achievements ▪ 2016 Financial Summary ▪ 2016 Disappointments ▪ Solid foundation for growth ▪ Strategic transformation of the business ▪ Outlook 5 5 company confidential – 2017
Annual Results 2016 2016 2015 Comments INCOME STATEMENT kCHF kCHF 1 First two IESO sites in Canada and Marengo project in Sales of goods and services 28 067.1 17 882.5 the US Other income 454.1 325.5 Total income 28 521.2 18 208.0 Raw materials and consumables used -26 162.6 -16 554.1 2 Ful year impact of Belgium July 2015 acquisition + Personnel costs -19 381.2 -14 297.2 Leclanché North America staffing Other operating expenses -10 501.3 -13 384.3 Steady-state loss reduced by 50%, excluding one-time Earnings Before Interest, Tax, Depreciation and Amortization -27 523.9 -26 027.6 investments 3 Impairment of Germany machinery damaged by the Depreciation, amortization and Impairment expenses -6 155.5 -5 795.5 April 2016 fire Operating Loss -33 679.4 -31 823.1 4 Capital raise commissions paid to financial Finance costs -4 091.1 -2 670.2 institutions Finance income - 0.5 Loss before tax for the year -37 770.5 -34 492.8 Income tax 553.4 -1 084.6 Loss for the year -37 217.1 -35 577.4 Net Loss per share -0.87 -1.21 6 6
Annual Results 2016 (Cont’d) 2016 2015 kCHF kCHF ASSETS Non-current assets 16'856.0 27'700.2 1 Damaged machinery write-off impact Current assets 35'613.8 12'562.2 2 CHF 21.5M Trade recevable balance TOTAL ASSETS 52'469.8 40'262.4 EQUITY AND LIABILITIES Share capital 72'005.2 56'854.5 Reserve -3'441.7 - 65'879.1 Accumulated losses -73'899.0 -114'121.8 Total Equity -5'335.5 8'611.8 Convertible Loan 21'814.6 7'563.5 3 ACE/JADE C-Note that expired on 30-Jun-17 Other liability (DBO, DTL...) 11'666.9 - 9'930.8 Borrowings 500.0 1'250.0 4 UBS/Cautionnement Romand Loan 5 Cell raw material + Module assembly + Advances Trade and other payables 23'823.8 12'906.3 from customers 24'323.8 14'156.3 Total Liabilities 57'805.3 31'650.6 TOTAL EQUITY AND LIABILITIES 52'469.8 40'262.4 7 7 company confidential – 2017
Agenda ▪ 2016 Achievements ▪ 2016 Financial Summary ▪ 2016 Disappointments ▪ Solid foundation for growth ▪ Strategic transformation of the business ▪ Outlook 8 8 company confidential – 2017
The ‘rebuilding and renovation work’ underway from 2015 through to 2017 Temporary slowdown in 1H-2017. Work resumed now 9 9 company confidential – 2017
̶ ̶ ̶ Leclanché – historical revenue development Significant restructuring / reorganisation period New management era 50.2 48.9 Discontinuation of legacy activities, e.g. Refocused offering with building momentum and Capacitors (2003) customer traction 43.1 Alkaline batteries (2005) Lead acid batteries (2007) 39.7 37.5 Funding Issues Revenue (CHFm) 31.2 28.5 25.6 18.2 16.3 16.1 15.2 15.1 14.9 13.4 13.3 13.1 10.8 2000A 2001A 2002A 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017F Sources: Bloomberg (2000A-2016A), company information (2017F) 10 10 company confidential – 2017
Leclanché – historical share price performance Management enhanced and Restructuring towards Cooling of market hype and Leclanché rides wave of substantial hype in energy storage sector towards investment made to reposition integration and modern Leclanché financial difficulties 2009/2010 as vertically integrated energy technologies storage solution provider 45 Discontinuation of small-format 2009 capital raise sees speculation by new 40 manufacturing at Itzehoe plant institutional investor, driving up Leclanché’s share price 35 Construction of Willstatt plant in Germany Expansion of lithium-ion production capacity 30 and specialisation in high performance Series of further capital batteries Share price (CHF) raises (discounted) 25 Major capital raise (at a 20 premium) Significant restructuring / reorganisation 15 10 5 Company warns Leclanché acquires production capacity market it is facing for lithium-ion batteries in 2006 liquidity issues 0 Source: Bloomberg as at 25 April 2017 11 company confidential – 2017
2016 Disappointments Impacting Operations in 1H-2017 • Only CHF 11M raised vs. target CHF 30M • Accumulated loss from the past, and the Equity raise from institutional investors delay in raising fresh equity, has led to a • Positive endorsement through entry of technical insolvency situation under Swiss such as Barings and Herald CO725.2 • Primary reasons for the limited success • Needed to negotiate extension of the of the fund raise Convertible Loan provided by ACE and Jade group which fell due on 30 th June • Long history of loss • Low market cap despite so much progress 2017 over past two years • ACE/Jade have accepted to roll-over 47% of their Convertible Loan until 30 th June 2018 • Small float/ Low liquidity in stock trading • Confusing business model/ too many • Golden Partner, the largest shareholder of markets addressed Leclanché, has purchased 53% of the Convertible Loan to ACE/Jade with a 30 th • Successful Due Diligence for a CHF 75M June 2018 maturity Corporate and Project Finance Debt • Business operations nearly frozen in 1H- Facility, but failed to close due to 2017 due to tight liquidity situation insufficient Equity Major Impact Fund Raise 12 company confidential – 2017
Agenda ▪ 2016 Achievements ▪ 2016 Financial Summary ▪ 2016 Disappointments ▪ Solid foundation for growth ▪ Strategic transformation of the business ▪ Outlook 13 13 company confidential – 2017
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