energy management solutions for a clean energy · highly focused business model with 3 business...

Energy management solutions for a clean energy future Annual General Meeting 6 June 2018Yverdon-les-Bains, Switzerland

What we said in 2017

and what we have

delivered

The opportunity is now-

delivering on our

strategy

2018 and 2019 outlook

Agenda

What we said and what we have delivered

Financials

Resumed strong growth

CHF 40-50 million revenue expected in 2018

100% improvement of EBITDA as % of Revenue in 2018.

On track to be

EBITDA positive by 2020

Revenue decline due to late funding received in late Q3 2017

EBITDA breakeven by 2019 delayed due to

late funding received in late Q3 2017

What we said and what we have delivered 4

Annual results 2017


2017 (kCHF) 2016 (kCHF)

Total Income 18,023.2 28,521.2 Decrease in revenue due to funding delays

Raw materials and consumables user -15,705.0 -26,162.6

Personnel costs -17,907.1 -19,381.2 Natural attrition + elimination of few positions

Other operating expenses -16,236.1 -11,366.1

EBITDA -31,825.0 -28,388.7

Depreciation, amortization and Impairment expenses

-4,232.2 -6,155.5 Write-off impact of the Willstätt formation tower

Operating Loss -36,057.2 -34,544.2

Finance costs -2,579.1 -3,226.3 Partial conversion of Facility B/C

Finance income 118.5

Loss before tax for the year -38,517.8 -37,770.5

Income tax 50.1 553.4

Loss for the year -38,467.7 -37,217.1


31/12/2017 (kCHF) 31/12/2016 (kCHF)

Assets

Non-current assets 16,622.5 16,856.0

Current assets 52,146.9 35,613.8 Increase in advances to suppliers and inventories

Total Assets 68,769.4 52,469.8

Equity and Liabilities

Share capital 104,523.8 72,005.2

Reserve 8,638.8 -3,441.7

Accumulated losses -102,195.2 -73,899.0

Total Equity 10,967.4 -5,335.5

Convertible Loan 22,658.9 21,814.6 Facility B/C/D1/D2

Borrowings 3,465.1 500.0 Short-term loan from Finexis and UBS

Other liabilities 11,074.9 11,602.6 Pension liabilities, deferred tax and other liabilities

Trade and other payables 20,603.1 23,888.1

35,143.1 35,990.7

Total Liabilities 57,802.0 57,805.3

Total Equity and Liabilities 68,769.4 52,469.8

Annual results 2017

On track to hit milestone of

100 MWh of stationary storage

projects in operation by 2018

On track to secure Master Supply Agreements in

eTransport business underpinning more than 150

MWh of recurring annual deliveries from 2019

onward

Awarded projects total > 300 MWh*

for deliveries through 2019

Qualified pipeline total > 1000 MWh

Highly focused business model with 3 business units:

• Stationary Storage Solutions

• E-Transport

• Specialty Battery Systems


* Awarded means Leclanché selected, but Purchase order confirmation subject to certain conditions such as; successful pilot testing/ project finance.

Pipeline means Leclanché technically short-listed, but still in competition.

Resume growth

Stationary eTransport

Strong order book in Stationary

Enel Green Power, Germany

ENERTAG, Germany

SWB Bremen, Germany

NRStor, Canada

Canadian Solar, Canada


50 MWh of confirmed new orders underpin the outlook for CHF 40-50 million revenue in 2018

Cremzow storage plant, Brandenburg, Germany:

Delivering a 34 MWh battery storage in partnership with ENEL

Green Power and ENERTRAG – 2 MW / 3.1 MWh pilot in operation

Q2 2018. Full project in operation in Q4 2018

IESO Basin 1 & 2, Ontario, Canada:

Delivering a 13.8 MWh battery storage system for grid ancillary

services. Basin 1 will be operational in Q2 2018 and Basin 2 in Q3

2018


Stationary Projects

SWB Bremen, Germany:

Delivering a hybrid storage system with a 15 MWh battery coupled with

a heating system to provide frequency regulation services to Germany’s

Primary Control Reserve (PCR) market. In operation by Q4 2018

Marengo, Illinois, USA:

Delivering a 19.5 MWh battery storage system for frequency regulation.

The complete storage solution will provide regulation ancillary services in

the PJM market, considered the most advanced market globally. In

operation by Q4 2018


Stationary Projects

S4 Energy, Almelo, Netherlands:

Delivering a 2.8 MWh battery storage system for Fast

Frequency Restoration markets in the Netherlands. In

operation 2Q 2018

NRStor C&I, Toronto, Canada:

Delivering a 4.9 MWh battery storage system to industrial

customer for demand charge mgmt (first C&I installation

in NA). In operation 3Q 2018


Stationary Projects

Canadian Solar Ellwood Project, Ottawa, Canada: Delivering a

4.1 MWh battery storage system for Grid Ancillary services on

IESO. In operation by 3Q 2018

EV Charging TransCanada Highway, Canada:

Delivering battery-based EV Charging systems for 3400 km of

the TCH in Canada – 4.5 MWh. First units in operation by July

2018


Stationary Projects

Major breakthroughs withMaster Supply Agreements

in eTransport

Skoda Electric, Europe

E-ferry, Denmark

Electric Vehicle Systems Integrator, India


Multi year annuity recurring contracts add up to more than 150MWh

revenues from 2019

E-ferry, Denmark:

E-ferry is the world’s largest fully electric ferry. Funded by the

EU, the ferry connects the island of Aero to the mainland. The

E-ferry will hold the biggest battery capacity seen on board a

vessel to date. Delivering 4.2 MWh of GNMC Cells-based

battery packs. In operation by Q3 2018

Skoda Electric, Czech Republic:

Joint development and supply agreement signed in July 2017.

Skoda Electric expect to sell 500 buses, leading to 125MWh

over the 4 year contract.


eTransport Programmes

Electric Vehicle Systems Integrator, India:

To be announced: a multi-year Master Supply Agreement to

deliver annual volume of battery modules and packs in the

range of 90 to 150 MWh pending on completion of successful

trials. Strategic entry in one of the largest electric vehicle

market in the world, helping India reduce CO2 emissions and

harmful NOx pollution in its densely populated cities

ZAPINAMO, UK:

Supplying fast charging LTO cells-based battery packs. Currently

on trial at London's Heathrow airport. In operation since April

2018


eTransport Programmes

Specialty Battery Systems

Automated Guided Vehicles (AGV)

Home energy storage

Artificial intelligence applications


Battery Systems for a Connected World

AGV: Balyo and Oceaneering leading systems integrator:

Supplying fast charging batteries, chargers and docking stations. The AGV

battery business represent a strong opportunity to position the LTO

technology. The AGV revenue doubled in 2017

ECA:

Supplying li-ion batteries for de-mining robots. Applications are unmaned

submarine and land robots



Armasuisse:

Delivering of SE135, SE235 and SE138 batteries. The batteries are

supplied to Swiss Army to be operated with telecommunication

devices. Leclanché has also delivered the prototypes to replace

the chargers and the batteries for the IMFS equipment

Home storage:

10 successful field tests done with our Powerpack. LOI signed with

HELION Solar for 100 installations in 2018



The opportunity is now–delivering on our strategy

Our Vision

22

Energy-as-Service

• Multi-battery systems architecture with in-house software and systems integration

• Rich set of applications delivered • >100MW / 100MWh of projects delivered/ under

construction

Renewable

integration

• In-house technology and knowhow to custom design Lithium cells for optimum performance around the world

• Battery packs delivered for eMarine in Europe; eBus in Europe and India; eAuto Rickshaw in India

Electrification of

transport

• In-house Fast Charging LTO Technology• Specialty battery packs delivered for robots deployed in

warehousing, medical, submarine applications

Robotics and

autonomous

vehicles

Convergence of Electricity and Transport markets

• Fast EV Charging stations• Cloud management• Data mining & analytics• Dynamic service level

agreements

The opportunity is now – delivering on our strategy

23

Improve margins and increase capital efficiency:

• EMS acquisition

• Strong roadmap for cell energy density and cost reduction to be on par

with the Asian market leaders by 2019/ 2020

Organisational Efficiency:

• Strategic Business Units

• Enhanced focus and investment on Health and Safety

• Key Performance Indicators benchmarked to industry norms

Solidifying Profitable Growth


Accretive Acquisition

24

Binding agreement to acquire full suite of

advanced Energy Management Software

Company based in the USA

Expected to increase margin of Stationary

Storage Solutions by

• an average of 3.5% percentage points or an

average 20% for a typical project

Virtual Battery

Battery modules+

BMS BMS

DC link

Slave interface

Inverter

Inverter interface

Energy Manager

EMS

Modbus/TCP based master interface to control the storage

system

UFMS Control UFMS Analyzer

UFMS Gateway

EMS A

Site 1

EMS B

Site 2

EMS C

Site 3

EMS D

Site 4

UFMS Gateway

UFMS Gateway

UFMS Gateway

UFMS

Leclanché Control System Software package provides flexibility across multiple applications and captures key product margins


25

Strong roadmap for cell energy density and cost reduction to be on par

with the Asian market leaders by 2019/ 2020

Cell production factory utilization going from 10% in 2017 to 20% in 2018

and approximately 80% in 2019

Planned Joint Ventures in India and China to provide Giga-scale

procurement volume

Module manufacturing in Yverdon going from 1 shift in first half 2018, and

moving to 2/ 3 more shifts late 2018 and early 2019. Recruited 20 people in

Yverdon over last six months.

Increase Capital Efficiency


26

50% of cost reduction planned in

the coming 2 years

38% of energy increase per cell while

maintaining the same level of

performance

100%93%

83%

68%

50%

0%

20%

40%

60%

80%

100%

120%

2017 H1 - 2018 H2 - 2018 2019 2020

Price decrease roadmap of GNMC cells


Increase Capital Efficiency

Our Leadership Team

27

Anil Srivastava CEO

Hubert AngleysCFO & COO

Corporate Services

Bryan Urban EVP

Stationary Storage Solutions

Stefan Louis EVP

eTransport Solutions

Fabrizio MarzoliniEVP


Pierre Blanc CTIO

Product Delivery

Finance

HR

Sales Ops

Quality & EHSS

Global Customer Services

IT

MarCom

Product Management

EPC: Procurement

FEED, Project Finance

EMS Development

EMEA / Americas / APAC:

Sales. EPC: Engineering,

Construction, PM, O&M

Product Management

Engineering


Sales

Project Management,

Integration

Homologation & Testing

Business Development

Engineering


Sales

Project Management

Cell R&D

Cell Production

Module Production

Supply Chain

BMS & Software Development

Pack Assembly


Key Performance Indicators

1.5XIncrease in Revenue

per employee in 2018

28

100%+

increase in Gross

Margin per employee

in 2018

50%improvement in Opex

as % of the Revenue

100%improvement of

EBITDA as % of the

Revenue in 2018


Organisational Efficiency

CHF75M secured corporate funding to deliver business plan until 2020

Further funding plans to finance margin accretive technology acquisitions and to accelerate growth by growing market share in Europe, Asia and North America

29The opportunity is now – delivering on our strategy

Fully Funding the Business Plan

Secured and Planned Funding

Secured new CHF75M corporate funding

In total, over CHF 100 million since July 2017

Non-binding term sheet with a strategic investor to

increase the current corporate funding to between

CHF100M- CHF125M to support >2x year-over-year growth

through 2017-2019

CHF 50 million facility to finance acquisitions and joint

ventures with ROFO right

30The opportunity is now – delivering on our strategy

Fully Funding the Business Plan

2018 and 2019 Outlook

Leclanché market opportunities

32

Stationary eTransport

Grid Ancillary Services

C&I Storage Solutions

Micro-grid Systems

PV Solar + Storage

Community Storage

EV Charging Stations

Electric Buses

Electric Ferries

Warehouse Equipment

Industrial Marine

Fleet Trucks

Light Vehicles

Renewable

Energy

Integration

Utility-Grid

Services

Grid-tied Microgrid

Island Microgrid

Utility T&D

Reliability

EV’s

E-Truck

E-Bus

Off-Road

Equip

EV Fast-Charging

Material Handling

E-MarineE-Train

Addressing a market over 15GWh and growing at 37% CAGR


Capitalising on our uniqueness

Unique integrated technology from cell design to megawatt delivery with in-house software and systems integration

33

Business model and USPs

• We are at the heart of the convergence of the electrification of transport and the

distribution networks

• Entirely focused on delivering and managing energy storage solutions

• We are independent, flexible and can manufacture at small scale for trials

• We combine the cultures of German engineering and Swiss precision and quality


34

Revenue growth drivers

• High revenue, but lumpy project based,

Stationary Storage business

• Higher margin and recurring annuity

revenue from eTransport business

• High margin, few-of-a-kind products,

Specialty Battery Systems business

• Working references, proven track record

in all 3 businesses

Profit drivers

• Make and Buy choices through multi-battery systems

architecture with in-house software and integration for

Stationary and Specialty Battery Systems

• 100% in-house cells, systems and software for eTransport

business

• Competitive upstream manufacturing business with high

utilisation, and planned access to Giga-scale procurement

volumes

• Optimal organisation and Opex benchmarked to the industry

norms

Growth drivers


2018 and 2019 Outlook 35

Double revenue in 2018 and 2019

CHF 40-50min 2018, CHF 100-125m in 2019

EBITDA positiveby 2020, 50% loss reduction in 2018

Increase corporate funding

CHF 100-125mtargeted by the end of 2018

Strengthen profit drivers

Enhance customer trust through

completion of 100MWh projects in

Operation in 2018

Increase revenue mix towards higher

margin eTransport and Specialty

Battery Systems

Reduce cost through access to

Gigawatthours-scale procurement in

the planned JVs

Financial Outlook

We would like to thank our customers, shareholders, suppliers and employees for their continued support

energy management solutions for a clean energy · highly focused business model with 3 business...

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