management presentation - leclanché · management presentation july 2016 . 2 company confidential...
TRANSCRIPT
2 company confidential – 2016
Disclaimer
This presentation has been prepared by Leclanché S.A. (the “Company”) solely for informational purposes.
None of the Company or any of its directors, officers, partners, employees, agents, affiliates or advisers nor any other person makes any representation or warranty of any
sort as to, and no reliance should be placed on, the accuracy, completeness, fairness or reasonableness of the information or the opinions contained in this presentation or
in any other document or information made available in connection with this presentation. No person shall have any right of action against the Company or any of its
directors, officers, partners, employees, agents, affiliates or advisers or any other person in relation to the accuracy or completeness of any such information or for any
loss, however arising, from any use of this presentation or its contents or otherwise arising in connection with this presentation.
This presentation contains non-IFRS measures (including certain ratios and key performance indicators, such as MWh, or megawatt hour, which means a unit of energy
equal to 1MW of power being applied continuously for one hour, which the Company uses to illustrate its overall production as demonstrated through the electrical
energy storage capacity of its battery systems). These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of
the Company’s results as reported under IFRS.
This presentation contains statements that constitute forward-looking statements relating to the business, financial performance and results of the Company and the
industry in which the Company operates. Such forward looking statements in this presentation are for illustrative purposes only. These statements may be identified by
words such as “expectation”, “belief”, “estimate”, “plan”, “target”, “forecast”, “pipeline”, and similar expressions or the negative thereof; by the forward-looking nature of
discussions of strategy, plans or intentions; or by their context. All statements regarding the future are subject to inherent risks and uncertainties, and various factors could
cause actual future results, performance or events to differ materially from those described or implied in these statements. Such forward-looking statements are based on
numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Further,
certain forward-looking statements are based upon assumptions of future events that may not prove to be accurate, and neither the Company nor any other person
accepts any responsibility for the accuracy of the opinions expressed in this presentation or the underlying assumptions. Past performance is not an indication of future
results and should not be taken as a representation that trends or activities underlying past performance will continue in the future. The forward-looking statements in this
presentation speak only as at the date of this presentation, and the Company expressly disclaims any obligation or undertaking to release any updates or revisions to these
forward-looking statements to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any
statement is based after the date of this presentation or to update or to keep current any other information contained in this presentation or to provide any additional
information in relation to such forward-looking statements.
This presentation does not constitute, and should not be construed as, an offer to sell or issue securities or otherwise constitute an invitation, inducement, solicitation or
recommendation to any person to purchase, underwrite, subscribe for or otherwise acquire securities in the Company or any of its affiliates or constitute an inducement to
enter into investment activity in any jurisdiction.
company confidential – 2016
Who we are
Market opportunity
Products, services & technology roadmap
Customers & case studies
Competitive advantage and IP
Organisation / execution platform
Financial Summary
Strategic Challenges and Risk Factors
4 4 company confidential – 2016
Who we are Leclanché at-a-glance
We are experts in energy storage
We have over 100 years of energy storage expertise with full solution capabilities including development, design, systems integration and management software for a wide array of storage and hybrid power configurations
We have the capability to deliver complete customer solutions
Our customer references across both stationary and transportation applications have been validated by industry-leading implementations and innovations in market segments ranging from utility-scale power generation/microgrids and grid services to mass eTransport (e.g. eFerry and eBus) and commercial & industrial battery systems. Our focus is providing customers with high-performance, infrastructure-grade, sustainable, safe, efficient and cost effective energy storage solutions, demonstrating the turn-key delivery of complex projects
We have proprietary, market-leading cell technology
Our proprietary Lithium Titanate Oxide (LTO) cell technology is protected by more than 100 patents granted or filed and provides market-leading charging speed, cycle/calendar life and thermal stability for lowest lifetime cost and world class performance
We can integrate any battery chemistry with our software and systems
Our advanced battery management system and cloud-based asset management software enables us to optimise solutions for an array of end-customer use cases. We are system integrators and our integration business encompasses in-house and externally sourced battery chemistries as well as other energy storage technologies, such as fuel cells
We bring quality European engineering to global markets
We have a heritage and culture of high quality design engineering and renowned Swiss precision, which feeds into efficient manufacturing and production through our global partners for growing markets worldwide. Our team includes 50 engineers (5 PhDs), with 20 in software development
We power clean, intelligent energy for the future
We are investing in our intelligent software, systems integration and power controls to deliver best-in-class storage solutions for 21st century applications
5 company confidential – 2016
Leclanché in numbers
$18 billion forecasted market size for Li-Ion energy storage for stationary, commercial & industrial and mass eTransport applications in 2020 **
> 150 FTEs including 50 engineers (5 PhDs), with 20 in software development, operating from offices located in Switzerland, Germany and Belgium
> 100 years company history, with rich heritage as one of the oldest battery manufacturers in the world
100+ MWh opportunity through 2017 from identified projects in advanced stages of our pipeline*
100% growth revenue growth target for 2016
> 100 patents granted or filed covering our proprietary Lithium-ion technology, our manufacturing processes and our systems expertise > CHF 135 million
total invested and committed by shareholders since June 2010
*Please refer to page 31 for more information on our pipeline. **Source : Navigant Research.
6 company confidential – 2016
Key investment highlights
Large, growing, strategic market
c.$18bn annual market in 2020, with target segment growth rates from 37-58% through 2025*
Strong technology differentiation, IP, software and design know-how
Strategically important IP enabling longer battery life, critical software and integration tools
Solid international pipeline with good momentum
100+MWh pipeline** with international customers supporting target 100% revenue growth in 2016
Vertically integrated with strong ‘downstream’ capabilities in emerging sector
Track record and expertise in project delivery to de-risk opportunity pipeline
Enhanced management to deliver on growth
Team now has >150 years combined executive experience and proven track record
*Source: Navigant Research. **Please refer to page 31 for more information on our pipeline.
company confidential – 2016
Who we are
Market opportunity
Products, services & technology roadmap
Customers & case studies
Competitive advantage and IP
Organisation / execution platform
Financial Summary
Strategic Challenges and Risk Factors
8 8 company confidential – 2016
The global Li-Ion energy storage market is growing rapidly, driven by utility-scale generation and the electrification of transport
Source: Navigant Research
4.4 7.5
11.9
15.7
21.4
28.9
36.0
45.5
58.3
75.5
0
10
20
30
40
50
60
70
80
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
GWh
Global Lithium-Ion battery installed capacity by application
Buses, Trucks and Materials HandlingVehicles
Residential Energy Storage
Commerical & Industrial Buildings
Microgrids
Utility-Scale
The Li-ion market for stationary and industrial mobility applications is forecast to grow 37% annually to 75.5GWh by 2025
9 9 company confidential – 2016
• Micro-grids: renewable integration
• Grid stabilisation and peak shifting
We have a sharpened focus on high growth end-markets 44% CAGR to $18 billion in 2020
• Commercial, industrial & residential
• Solar lighting, medical, telecoms, security & defence
• Branded consumer (selected markets)
Source: Navigant Research.
• Fleets of buses, trains & trams
• Ferries and tugboats
• Forklifts, cranes, mining vehicles
0.9
4.2
0.0
1.0
2.0
3.0
4.0
5.0
2016 2020
1.8
11.3
0.0
3.0
6.0
9.0
12.0
2016 2020
1.7
6.0
0.0
2.0
4.0
6.0
8.0
2016 2020
GW
h
GW
h
GW
h
Utility-scale generation & microgrids
Commercial & industrial battery systems
eTransport
company confidential – 2016
Who we are
Market opportunity
Products, services & technology roadmap
Customers & case studies
Competitive advantage and IP
Organisation / execution platform
Financial Summary
Strategic Challenges and Risk Factors
11 11 company confidential – 2016
Our common technology stack is applicable across multiple markets
Module design
Battery management system (BMS)
Systems integration and engineering expertise
Solutions delivery, including financing & EPC*
Proprietary Lithium Titanate Oxide (LTO) cells for leading performance in long-life and
rapid-charge applications
Proprietary G-NMC** cells for energy
intensive applications
eTransport Utility-scale generation
& microgrids
Commercial & industrial battery systems
Asset planning & management software
*Engineering, Procurement & Construction. **Graphite anode and Nickel-Manganese-Cobalt cathode.
Third party battery cells and other energy storage technologies
Common, modular ‘building block’ technology – with
capabilities to integrate all storage technologies
Our systems integration business is cell chemistry
agnostic and encompasses other evolving energy storage technologies
12 12 company confidential – 2016
We leverage our in-house capabilities and top quality partners to provide the right solution for each customer application
Utility-scale generation & microgrids
Commercial & industrial battery systems
eTransport
13 13 company confidential – 2016
Cycle life 15,000 @ 100% DoD >20,000 @ 80% DoD
4,500 @ 100% DoD 8,000 @ 80% DoD
Lifetime & warranty
Up to 20 years Up to 10 years
Charge time to 90% SoC
Less than 15 minutes (4C) 1 hour (1C)
Charge acceptance
Symmetrical to discharge (max. c-rate 5 to 20)
Asymmetrical to discharge (max. c-rate 1)
Energy density
70 Wh / kg 160 Wh / kg
Temperature range
-20°C to +55°C 0°C to +45°C
Safety Superior ceramic cell technology Superior ceramic cell technology
Ideal use case • Power intensive applications
• Long lasting applications
• Applications needing rapid response
• Grid stability projects
• Energy intensive applications
• Low- or micro- cycle applications
• Bulk storage or weight critical applications
• Renewable energy integration projects
We deploy our proprietary LTO and G-NMC cells yet remain flexible to incorporate all third party technologies for selected solutions
Lithium Titanate Oxide (LTO) Lithium Graphite/NMC (G-NMC) Integrated 3rd Party Technologies
The vast majority of applications use our technology… …but we remain flexible to integrate
Examples could include:
Other battery chemistries (Ni-MH, Ni-Cd, PbA, Li-ion)
Hydrogen fuel cells
Vanadium redox / redox flow batteries
Ultracapacitors
14 14 company confidential – 2016
We continue to invest in complementary technologies to enhance our customer solutions offering & delivery capabilities
Jan-15 Dec-15
Jul-15 Acquisition of storage developer Trineuron
Solution integration and customer base in eTransport applications, e.g. electric buses, ferries and AGVs (automated guided vehicles)
New system development centre including
additional 10 engineers from Trineuron
May-15 Strategic partnership with Visedo
Strategic partnership for marketing, selling and developing Visedo’s electric drive trains with Leclanché’s battery systems
Provision of a ”one-stop-shop for electric power trains” – an integrated solution to maximize performance and reduce lead times
Joint R&D activities
Aug-15 Acquisition of IP rights from ADStec
Leclanché acquired the non-exclusive usage right to employ special battery technology designed by ads-tec, primarily for stationary applications
Ads-tec offers solutions for the energy management of hybrid energy systems, a central cloud solution, as well as complex storage systems for commercial and industrial applications
May-15 Strategic cooperation with Litarion
Cooperation announced with Litarion for the supply of Graphite and NMC electrodes to be incorporated into Leclanché’s Li-Ion cells and systems
Acquisition
Strategic partnership/cooperation
Summary of recent transactions to increase downstream capabilities for enhanced customer solutions
15 15 company confidential – 2016
To accelerate growth, we are making substantial investments in software, controls and integration tools
2016 2018
Battery Cell Innovation to improve price-performance
Battery Module Move to lighter, scalable and cost-competitive modules
Pack & rack Standardised to enable efficient systems integration
Cloud software & services Enables fleet/asset management
Long-term recurring service revenues from next-generation cloud release
System integration & EPC Integration with drive lines, inverters & energy management systems
Industry leading system efficiency to reduce total cost of ownership (TCO)
Battery management systems (BMS) Single platform across multiple market applications, with apps for bespoke solutions
Risk reduction through commitment to double-digit percentage annual cost reductions, aiming to beat competitors’ ASP reductions Multiple ongoing R&D programs delivering cost reductions to drive competitiveness Universal platform and standardised designs where possible; customisation delivered through software and integration
16 16 company confidential – 2016
We are a market leader in sustainable battery solutions
The first global Li-Ion battery producer with a water-based cell production process
─ In contrast to the chemical solvents, which have to be subsequently recycled or burnt, which are used by our peers in conventional industrial coating
We are a member of the Swiss Inobat Interest Organization for the disposal of batteries and began with the recycling of batteries as early as 60 years ago
Protection of the environment is given high priority in every phase of our product life cycle:
─ saving resources by reduction of waste in manufacturing
─ separation technology in all areas of chemical processing
─ gas and water treatment through to systematic recycling and recovery of raw materials
ISO9001:2015 with ISO14001 underway
Our high quality production, combined with the benefits that energy storage brings to integrating renewables and emission-free transportation, provides us with amongst the cleanest credentials in our commitment to sustainability
company confidential – 2016
Who we are
Market opportunity
Products, services & technology roadmap
Customers & case studies
Competitive advantage and IP
Organisation / execution platform
Financial Summary
Strategic Challenges and Risk Factors
18 18 company confidential – 2016
We are building a diverse global customer base following international demand
Secured projects and pipeline
Pipeline only
Our secured projects and pipeline* encompass over 40 projects in 19 countries
eTransport China
eTransport Haryana, India
4 projects (utility / eTransport) Sweden
Commercial & industrial Switzerland
Commercial & industrial Saudi Arabia
Commerical & industrial Sri Lanka
5 projects (eTransport) Spain
eTransport Denmark
11 projects (utility / commercial & industrial / eTransport) Germany
eTransport Czech Republic
eTransport Poland
eTransport San Francisco, USA
eTransport Tuscaloosa, USA
Utility Canada
2 projects (utility) Azores/Portugal
2 projects (eTransport) France
2 projects (eTransport) Norway
2 projects (utility) United Kingdom
eTransport Holland
4 projects (utility / eTransport) Finland
*Please refer to page 31 for some further information on our pipeline.
19 19 company confidential – 2016
We are growing our pipeline, with substantial momentum over the past 12 months
Jun-15 – World’s largest electric Ferry
Jan-15
Aug-15 – Solar street lighting, Saudi Arabia
Jan-16 – World’s largest grid ancillary services project (53 MWh), Canada
Feb-16 – New CFO
Jul-15 – Autonomous guided vehicles (AGVs), Belgium
Our awarded and
expected projects*
total >100 MWh
across 10+ project
deliveries through
2017
Jul-15 – New CSO
Aug-15 – New VP Corporate Development
Jan-16
Customer traction with project wins across each of our segments
May-15 – European largest Hybrid power plan, Azores island, Portugal
*See page 31 for more information.
20 20 company confidential – 2016
Customer case studies: utility-scale and microgrid storage applications
• Micro-grid supplying power for 4,500 inhabitants; turnkey solution for energy storage plant and distribution management integrating solar PV, wind park and diesel genset technologies
• Increase in proportion of renewable generation used from 15% to 65% of annual consumption
• 20 years performance warranty by Leclanché on its LTO batteries
• Project management and EMS by Younicos, financing provided by local grants and Leclanché’s shareholder, Recharge
Location: Graciosa, Azores Islands, Portugal
System: 3.2MWh LTO BESS
COD: Dec-2015
École polytechnique fédérale de Lausanne Ontario IESO / grid ancillary services
Graciosa energy island / micro-grid
• Fast frequency response for grid reserve / voltage control services
• 15 years performance warranty by Leclanché on its G-NMC batteries
• Partners include Deltro Energy (electrical and civil work and PCS) and Greensmith (EMS); Leclanché providing development Capital and arranging Swiss Export Credit (SERV)
Location: Ontario, Canada
System: 53MWh G-NMC BESS
Target COD: Q1-2017 (under construction)
• Turnkey BESS for ancillary services, solar PV solar integration, peak shaving, load management and fast frequency response
• 10 years performance warranty by Leclanché on its LTO batteries
• Largely co-financed by the Canton of Vaud
Location: Lausanne, Switzerland
System: 500kWh LTO BESS
COD: Sep-2015
Bamboo Sprout – primary control reserve
Location: North Germany
System: 33MWh BESS
Target COD: Q4-2016 (under construction)
• Turnkey BESS to provide grid frequency control via the German primary control reserve (PCR) market
• 10 years performance warranty by Leclanché on its BESS
• 2-MW capacity being built by Leclanché on the basis of Build-Own-Operate-Transfer- while the Company is actively seeking long term strategic owners of this Asset
• Project partner and DSO: ENERTRAG AG
21 21 company confidential – 2016
Customer case studies: eTransportation applications
Location: Denmark
System: 4.2MWh G-NMC
Target COD: Jun-2017
b u s e Location: Espoo, Finland
System: 55kWh LTO
COD: Feb-2016
Location: Brugge, Belgium
System: 38kWh LTO
COD: Oct-2015
• First wirelessly charged fully electric buses to enter public operation in Belgium
• Three VanHool A308E buses equipped with an LTO battery delivered by Leclanché.
• Project partners included VanHool, De Lijn (Belgian bus operator) and Bombardier
Brugge eBus
VTT eBus
• Ranked #1 in TransDev energy consumption test, which included several European and Chinese bus designs; eBus achieved as low as 0.7 kWh/km consumption vs typical consumption of 1.1-1.3 kWh/km.
• Full electric drivetrain provided in partnership with Visedo
ÆRØ Ferry Project
• 56m x 12m public eFerry to replace one of the diesel-powered ferries on route between Denmark mainland and Ӕrø Island.
• Will be largest electric ferry in the world with planned energy savings up to 50% and major emission reductions
• Full electric drivetrain provided in partnership with Visedo
BB Green
Location: Sweden
System: 200kWh LTO
COD: Q2-2016
• Battery system and integrated BMS for demonstrator fully electric high speed commuter ferry
• LTO technology means batteries may be fully charged in as little as 10 minutes
• Battery capacity divided into two identical battery packs for redundancy
• Ferry fully constructed and awaiting deployment
22 22 company confidential – 2016
Customer case studies: eTransport, commercial and industrial applications
Automated guided vehicles (AGVs)
Off-grid residential storage Off-grid street lighting
• Globally renowned toy and entertainment brand chose Leclanché to replace their fleet of 27 NiCd-powered warehouse AGV’s
• Leclanché was chosen over competing solutions for:
– Lowest total cost of ownership with guaranteed 80% residual capacity after 7 years
– Greater autonomy and operational flexibility from better efficiency, ultra-fast charging and remote management software
– Low ecological footprint given favourable battery chemistry and Leclanché’s other ‘green’ credentials
• In March 2015 Leclanché delivered 200 battery modules for the project, certified to CE and UN38 safety standards
• Each module consists of 10 A4 LTO cells and is supported by a 10-year performance warranty
• Fully integrated design, specified with capacity for two full consecutive nights of autonomy, heat resistant (to over 50°C) and maintenance-free
Location: Saudi Arabia
System: 3x700Wh LTO modules
COD: Oct-2015
Location: Billund, Denmark
System: 40kWh LTO
Target COD: Q4-2016
Location: Island, Sri Lanka
System: 130 kWh, G-NMC
COD: Nov-2015
• Economical residential storage solution delivered for a small island in the north of Sri Lanka
• 4 battery banks, five 6.7kWh each
• 7 year warranty with design life of more than >5,000 cycles
Auto-guided oceanography submarine
Location: Belgium
System: 14.4kWh Third Party G-NMC
Target COD: Q4-2016
• Advanced design constraints to provide enough energy within limited physical envelope and able to resist to huge pressure and mechanical constraints (for diving depths over 300 metres)
• Design, testing and all certifications completed, production underway
company confidential – 2016
Who we are
Market opportunity
Products, services & technology roadmap
Customers & case studies
Competitive advantage and IP
Organisation / execution platform
Financial Summary
Strategic Challenges and Risk Factors
24 24 company confidential – 2016
We have demonstrated differentiation relative to our competitors
Storage solutions as %
of business
Multi-chemistry cell
capabilities
Module, BMS pack & rack
EPC & project systems
integration
Balance sheet strength
Segment focus for:
Electric utilities
Commerical, industrial and
eTransport
Passenger vehicles (EVs)
Strong position
Weak position
China
Korea 1
Japan 1
Europe
Korea 2
Japan 2
USA
Japan 3
Source: Management.
25 25 company confidential – 2016
Our IP portfolio of patents protects our proprietary LTO technology and water-based processing methods
IP Coverage Patent family Patent granted In filing status
LTO specific 5 35 5
Manufacturing process 3 37 30
Separator technology(1) 1 - 5
System/module integration 2 - 3
11 72 43
Coverage area # patents granted # patents filed # of patent families
(1) Further separator patents are filed under our Fraunhofer license.
We have built up a broad portfolio of IP to safeguard our business
We continue to secure our technology with patents as an on-going part of our strategy
company confidential – 2016
Who we are
Market opportunity
Products, services & technology roadmap
Customers & case studies
Competitive advantage and IP
Organisation / execution platform
Financial Summary
Strategic Challenges and Risk Factors
27 27 company confidential – 2016
Organisational chart New group structure introduced in July 2016
Chief Executive Officer Anil Srivastava
Regional functions Worldwide functions Corporate functions
Executive Committee
EU & RoW [External to be hired]
(Interim Anil Srivastava)
North America Bryan Urban, EVP
APAC Jacques Boppe, SVP
Customer Projects Delivery
Fabrizio Marzolini, EVP
Product Delivery Pierre Blanc, CTIO
Marketing & Communications Florent Gaillard
Human Resources Nathalie-Claire Altherr
Finance Hubert Angleys, CFO
Legal [External to be hired]
Quality Health & Safety
Yann Beaufils
Innovation Board
Systems R&D Stefan Louis, SVP
Distribution & Home Storage
Thierry Perronnet, MD
28 28 company confidential – 2016
Who we are
Anil Srivastava, Chief Executive Officer
• Joined June 2014; former CEO of Areva Renewables
• Previously CEO of a large offshore German wind company and senior executive positions in companies such as TomTom group and Alcatel-Lucent
• Masters degree from the National Institute of Technology in India (IIT) and Executive MBA from the Wharton School of Business
Fabrizio Marzolini, Executive Vice President - Customer Projects Delivery
• Joined 1994; over two decades experience in integrating and managing battery technologies and systems for a variety of applications, with background in military-grade energy equipment
• Degree in electrical engineering and an executive Master of Business Administration (MBA)
Hubert Angleys, Chief Financial Officer
• Joined February 2016
• Formerly CEO and CFO of Metalor, a Swiss corporation with multi-billion dollar revenues
• Previously CFO of ALCOA Europe - Geneva and SICPA Group - Lausanne
Pierre Blanc, Chief Technology Information Officer
• Joined 2000
• Responsible for the development and manufacturing of battery cells of major brands such as Varta, Energizer, Panasonic and Enersys
• BA Moderatorship Chemistry from Trinity College Dublin
Stefan Louis, Senior Vice President – Systems Research & Development
• Joined 2015
• Previously at Trineuron, division of Emrol, acquired by Leclanché in 2015
• MSc in Electronics
Thierry Perronnet, Managing Director - Distribution & Home Storage
• Joined 2013
• Previously Marketing Director with Eastman Kodak for the EMEA region and developer of a business in data storage and photographic products that was spun off from 3M
Bryan Urban, Executive Vice President – North America
• Joined Board in 2013, EVP since 2016
• Over 25 years of energy development, finance and operation experience gained worked with Silverton Capital, Panda Energy International and Arthur Andersen
• BS from Indiana University and CPA
Jacques Boppe, Senior Vice President - APAC
• Joined 2015; former co-founder of Bogga Wind Power
• Previous private equity and investment experience with GWIT, China Renaissance Partners and Credit Suisse
• MBA from INSEAD, MPhil University of Cambridge and MSc Ecole polytechnique fédérale de Lausanne
company confidential – 2016
Who we are
Market opportunity
Products, services & technology roadmap
Customers & case studies
Competitive advantage and IP
Organisation / execution platform
Financial Summary
Strategic Challenges and Risk Factors
30 30 company confidential – 2016
We have a large addressable market supporting our growth opportunity
Utility-scale generation & microgrids
GWh 0.9 4.2 0.04 0.2 0.4
$m 1,200 3,700 40 190 370
Commercial and industrial systems
GWh 1.8 11.3 0.1 0.6 1.1
$m 2,300 12,600 130 630 1,300
eTransport
GWh 1.7 6.0 0.1 0.3 0.6
$m 700 1,800 20 90 180
Total GWh 4.4 21.4 0.2 1.1 2.1
Implied Leclanché revenue opportunity $m 4,300 18,100 180 910 1,810
Estimated market size Implied market share in 2020
2016 2020 ~1% ~5% ~10%
Note: Numbers have been rounded and therefore may not sum exactly to totals shown. Source: Navigant Research.
31 31 company confidential – 2016
We expect to see strong growth through 2017 driven by our pipeline of awarded and expected projects*
Awarded and expected projects
Battery type
Market Segment
Size (MWh)
Target Delivery
Pipeline Status (as of 14 July 2016)
Stationary 1 G/NMC 2 2016 Short listed for supply contract; Final decision expected Q3-2016
Stationary 2 G/NMC 12 2016 Project awarded; Under construction
eTransport 1 (Ferry) G/NMC 4 2016 Project awarded; Under construction
Stationary 3 TBA 10 2016 Project awarded; Construction expected to start in Q3-2016
Stationary 4 TBA 10 2016 Project awarded; Construction expected to start in Q3-2016
eTransport 2 (Bus) LTO 5 2017 Term sheet signed Q4-2015; Certification testing underway
Stationary 5 G/NMC 41 2017 Project awarded
Stationary 6 G/NMC 33 2017 Short listed for supply contract; Final decision expected Q3-2016
eTransport 3 (Ferry) LTO 4 2017 Multiple discussions underway
Stationary 7 TBA 10 2017 Project under development
Stationary 8 TBA 10 2017 Project under development
Total 141
*Execution on the pipeline assumes sourcing of up to CHF 50 million, as referenced in Leclanché’s press release dated 13th April 2016. The Company is exploring various means to raise this capital including equity, off- balance sheet project finance and licensing some of its technologies.
32 32 company confidential – 2016
We see a positive correlation between production volume and gross margin
Analysis based on internal management estimates shows cumulative gross margin crossing above 25% at c.100 MWh production and above 30% at c.400 MWh
Production assumes a mixture of in-house and planned outsourced manufacturing
Pricing assumes cell and module ASPs reducing by 3-5% annually from current market levels
This is indicative, without reference to time period, and not intended as a forecast
*Gross margin calculated using internal management estimates for cell and module production (including different ASPs and volumes assumed for different chemistries and applications).
*
18%
20%
22%
24%
26%
28%
30%
32%
34%
36%
0 100 200 300 400 500 600 700 800 900 1,000
Gross margin %
Cell and module production (MWh)
Cumulative gross margin increase as production volume scales
33 33 company confidential – 2016
Summary income statement and announced guidance
FYE December 31 2014A 2015A 2016 guidance
CHF millions from management
MWh delivered na 5 30
Total revenue 10.8 18.2 36
Growth % na 69% 100%
Gross profit 2.8 1.7 *
Gross margin % 26% 9% *
Personnel costs (12.4) (14.3) *
Other operating expenses (7.4) (13.4) *
EBITDA (16.9) (26.0) (13)
Depreciation & amortization (4.6) (5.8) *
EBIT (21.5) (31.8) *
Interest (1.9) (2.7) *
Income tax - (1.1) *
Net loss (23.4) (35.6) *
Doubling revenue in 2016
Plan to deliver 30MWh in 2016
34 34 company confidential – 2016
Summary balance sheet
FYE 31 December 2015A
CHF millions
Accounts payable 6.0
Current portion of long-term debt 0.8
Other current liabilities 6.9
Total current liabilities 13.7
Long-term debt 8.1
Pension & other 9.9
Total non-current liabilities 18.0
Common stock and paid in capital 129.8
Retained earnings and other (121.2)
Total equity 8.6
Total equity and liabilities 40.3
FYE December 31 2015A
CHF millions
Cash and cash equivalents 3.5
Trade and other receivables 4.7
Inventories 4.4
Total current assets 12.6
Property, plant and equipment 17.8
Intangible assets 9.6
Other financial assets 0.3
Total non-current assets 27.7
Total assets 40.3
35 35 company confidential – 2016
Consistent backing from new and existing shareholders
We benefit from supportive shareholders; ACE, Recharge, Bruellan and Logistable together have put in CHF 50+ million since 2013
Additionally, Recharge has provided CHF millions in off-balance-sheet project financing support for an array of customer solutions integrating Leclanché’s technology, such as projects in Graciosa Island, Canada and Saudi Arabia
Shareholders have continued to support us with capital at increasing valuations reflecting our progress
1.50
1.90
2.20
2.41
2.86
1.00
1.50
2.00
2.50
3.00
Precept(Jul-13)
Recharge(Dec-14)
RechargeFacility B(Dec-14)
December2015 raise
ACE Facility C(Mar-16)
CHF/Share
CHF 17m
CHF 13m
CHF 8m
CHF 6.9m
CHF 20m
Denotes capital raised
Indicative shareholding - Pro Forma for conversion of outstanding convertible loans
20%
16%
9%
9% 6%
6%
35%
ACE & Company
Golden Partner
Bruellan
Logistable Group
Bright Cap SICAV
Recharge
Others / Free float
(Either equity or debt that is convertible into equity)
company confidential – 2016
Who we are
Market opportunity
Products, services & technology roadmap
Customers & case studies
Competitive advantage and IP
Organisation / execution platform
Financial Summary
Strategic Challenges and Risk Factors
37 37 company confidential – 2016
We are actively working to mitigate key strategic challenges across our business
Perceived challenge Mitigation effort
Sustainability of high double-digit revenue growth
• Leclanché is working to secure capital – both growth capital and diverse sources of off-balance sheet project financing – recognizing that access to capital is critical to support the Company’s ongoing operations and continued growth
• Leclanché has an order backlog of ~CHF 40 million, which represents part of a wider pipeline of awarded and expected projects totaling 141 MWh in customer contracts, which provides visibility of growth into 2017-2018
‘Lumpy’ project-related revenue creating unpredictable earnings profile
• While Leclanché’s near-term order book is currently oriented toward utility-scale and microgrid projects, the Company has also won exemplar projects in eTransport, including electric buses and ferries. Following a process of certification and homologation, Leclanché’s solutions become ‘designed-in’, creating a barrier to entry and positioning the Company for multi-year contracts impacting growth in 2018 and beyond
• This will diversify the Company’s business away from stationary project-related revenue and towards 7 to 15+ year repeat ‘unit sales’ business in eTransport and selected Commercial & Industrial applications, for which the Company’s LTO technology is ideally suited
Perception of overly broad market focus
• Leclanche’s solution architecture is modular. It has 80% common system design elements across its three end market segments – from cell module manufacturing through integrated software for power management systems and drive train / inverters. This strategy of common design enables the Company to target multiple fast-growing market segments with a competitive cost base
• Also encompassed in this strategy is the Company’s focus on developing a common charging infrastructure across all three of its end markets. This is a substantial market opportunity as the convergence between stationary and mobility businesses occurs
Competition and margin pressure
• Notwithstanding considerable competition in a highly fragmented marketplace the Company is competing favorably
• Current R&D programs in system and cell design are delivering a planned double digit cost reduction per annum, together with ongoing significant improvements in cell performance
• The Company’s cost reduction efforts, integrated solution offering and scale can drive increased margins
Risks related to EPC business
• Leclanché deploys its solutions into projects with relatively short construction periods (typically <6 months), with a high management focus on recycling capital and reducing warranty exposure
• Large project performance guarantees are backed by The Swiss Export Credit Agency (SERV) and are non-recourse to Leclanché
• In addition, the Company carries separate insurance to cover standard product warranties and corporate matters
Sufficient working capital and resources to sustainably compete in cell manufacturing
• In-house cell manufacturing capacity is being limited to 1.3 million cells annually (+30% from current levels) with G-NMC cell production increasingly outsourced and a focus on in-house manufacturing of LTO
• The Company is actively reviewing opportunities to license its cell technology and partner on its upstream cell manufacturing and remains committed to integrating other upstream technologies to achieve optimal system designs for its customers
38 38 company confidential – 2016
Note on risk factors
Shareholders and prospective investors should be aware of the of the following factors, any of which could have a material adverse effect on Leclanché’s business, financial condition, results of operations and prospects, and accordingly the value of Leclanché’s shares:
− Leclanché has limited liquidity and may not have sufficient capital to continue as a going concern
− Leclanché may be unable to raise additional capital
− Leclanché could be subject to liquidation if it fails to take appropriate remedial action
− Leclanché may be unable to become profitable or achieve positive cash flow
− Leclanché may be unable to implement its strategic plans for growth
− Success will depend on the ability to offer more cost effective products and improve existing battery technology
− Leclanché must be able to establish and maintain confidence of its customers, partners and suppliers, among others
− Leclanché may fail to develop successful products and solutions
− Leclanché is subject to the risk of uncertain global economic conditions
− Partnerships and collaborations may not be successful
− Leclanché has limited number of customers and operates in limited geographical areas
− There is substantial overcapacity in the sector
− Leclanché could be exposed to warranty and guaranty claims
− Leclanché could be exposed to product liability claims
− Leclanché could be exposed to environmental claims
− Leclanché could be exposed to tax risks
− Leclanché could be exposed to intellectual property risks
− Leclanché could be exposed to litigation risks
39 39 company confidential – 2016
We operate with integrity Company code of conduct
Ethics: honest and ethical business, wherever we operate in the world
Confidentiality: integrity in all dealings with potential, current and past customers, suppliers and associates, both in terms of normal commercial confidentiality
Duty of care: conform with relevant law and avoid causing adverse effect on the human rights of people in the organizations we deal with, the wider environment and society at large
Conflict of interest: perform duties in accordance with the best interests of Leclanché and not for private or personal advantage
Relationships with customers and suppliers: avoid personal dealings with contractual counterparties of the Company that could influence or create the impression of influencing their decisions on behalf of the Company
Gifts, Entertainment, and Favors: not accept gifts or preferential treatment that could influence business dealings or assessments
Pricing: competitive pricing throughout with generally no arbitrary discounts
Intellectual property (IP) and moral rights: retain moral rights and ownership of IP that we create and in turn respect our customers’ IP rights
Quality assurance: maintained through constant ongoing review and reports with our customers
Professional conduct: professionalism, integrity and objectivity in judgement to protect the interests of our customers
Equality and discrimination: decisions, actions or recommendations never influenced by issues of gender, race, creed, color, age or personal disability
40 40 company confidential – 2016
Our focus leverages our heritage of precision engineering for best-in-class customer solutions
We benefit from over 100 years of energy storage expertise with full solution capabilities including development, design, systems integration and management software for a wide array of storage and hybrid power configurations, with the know-how to integrate for a broad range of infrastructure-grade industrial and commercial stationary and transport applications.
Our focus is to provide customers with sustainable, safe, efficient and cost-effective energy storage solutions. Our experience integrating a diversity of battery chemistries enables us to deliver, whatever the application. We’ve demonstrated our capabilities across targeted end-markets and applications, integrating our proprietary long-duration battery cells, our high energy density cells, as well as an array of third party energy storage technologies.
We are investing in our intelligent software, systems integration and power controls to deliver best-in-class storage solutions for 21st century applications.