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

Transcription

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

2 Agenda What we said in 2017 and what we have delivered The opportunity is nowdelivering on our strategy 2018 and 2019 outlook

3 What we said and what we have delivered

4 Financials Resumed strong growth CHF million revenue expected in 2018 On track to be EBITDA positive by % improvement of EBITDA as % of Revenue in Revenue decline due to late funding received in late Q EBITDA breakeven by 2019 delayed due to late funding received in late Q What we said and what we have delivered 4

5 Annual 2017 (kchf) 2016 (kchf) results 2017 Total Income 18, ,521.2 Decrease in revenue due to funding delays Raw materials and consumables user -15, ,162.6 Personnel costs -17, ,381.2 Natural attrition + elimination of few positions Other operating expenses -16, ,366.1 EBITDA -31, ,388.7 Depreciation, amortization and Impairment expenses -4, ,155.5 Write-off impact of the Willstätt formation tower Operating Loss -36, ,544.2 Finance costs -2, ,226.3 Partial conversion of Facility B/C Finance income Loss before tax for the year -38, ,770.5 Income tax Loss for the year -38, ,217.1 What we said and what we have delivered 5

6 Annual 31/12/2017 (kchf) 31/12/2016 (kchf) results 2017 Assets Non-current assets 16, ,856.0 Current assets 52, ,613.8 Increase in advances to suppliers and inventories Total Assets 68, ,469.8 Equity and Liabilities Share capital 104, ,005.2 Reserve 8, ,441.7 Accumulated losses -102, ,899.0 Total Equity 10, ,335.5 Convertible Loan 22, ,814.6 Facility B/C/D1/D2 Borrowings 3, Short-term loan from Finexis and UBS Other liabilities 11, ,602.6 Pension liabilities, deferred tax and other liabilities Trade and other payables 20, , , ,990.7 Total Liabilities 57, ,805.3 Total Equity and Liabilities 68, ,469.8 What we said and what we have delivered 6

7 Resume growth Stationary On track to hit milestone of 100 MWh of stationary storage projects in operation by 2018 etransport 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. What we said and what we have delivered 7

8 Strong order book in Stationary 50 MWh of confirmed new orders underpin the outlook for CHF million revenue in 2018 Enel Green Power, Germany ENERTAG, Germany SWB Bremen, Germany NRStor, Canada Canadian Solar, Canada What we said and what we have delivered 8

9 Stationary Projects 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 Q Full project in operation in Q IESO Basin 1 & 2, Ontario, Canada: Delivering a 13.8 MWh battery storage system for grid ancillary services. Basin 1 will be operational in Q and Basin 2 in Q What we said and what we have delivered 9

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11 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 Q 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 Q What we said and what we have delivered 11

12 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 What we said and what we have delivered 12

13 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 What we said and what we have delivered 13

14 Major breakthroughs with Master Supply Agreements in etransport Multi year annuity recurring contracts add up to more than 150MWh revenues from 2019 Skoda Electric, Europe E-ferry, Denmark Electric Vehicle Systems Integrator, India What we said and what we have delivered 14

15 etransport Programmes 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 Q Skoda Electric, Czech Republic: Joint development and supply agreement signed in July Skoda Electric expect to sell 500 buses, leading to 125MWh over the 4 year contract. What we said and what we have delivered 15

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17 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 What we said and what we have delivered 17

18 Battery Systems for a Connected World Specialty Battery Systems Automated Guided Vehicles (AGV) Home energy storage Artificial intelligence applications What we said and what we have delivered 18

19 Specialty Battery Systems 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 What we said and what we have delivered 19

20 Specialty Battery Systems 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 What we said and what we have delivered 20

21 The opportunity is now delivering on our strategy

22 Our Vision Energy-as-Service Renewable integration Electrification of transport Multi-battery systems architecture with in-house software and systems integration Rich set of applications delivered >100MW / 100MWh of projects delivered/ under construction 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 Convergence of Electricity and Transport markets Fast EV Charging stations Cloud management Data mining & analytics Dynamic service level agreements Robotics and autonomous vehicles In-house Fast Charging LTO Technology Specialty battery packs delivered for robots deployed in warehousing, medical, submarine applications The opportunity is now delivering on our strategy 22

23 Solidifying Profitable Growth 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 The opportunity is now delivering on our strategy 23

24 Accretive Acquisition 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 Leclanché Control System Software package provides flexibility across multiple applications and captures key product margins Virtual Battery Battery modules+ Slave interface Energy Manager UFMS Control UFMS UFMS Analyzer DC link BMS BMS Inverter Inverter interface EMS Modbus/TCP based master interface to control the storage system UFMS Gateway EMS A UFMS Gateway EMS B UFMS Gateway EMS C UFMS Gateway EMS D Site 1 Site 2 Site 3 Site 4 The opportunity is now delivering on our strategy 24

25 Increase Capital Efficiency 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 Recruited 20 people in Yverdon over last six months. The opportunity is now delivering on our strategy 25

26 Increase Capital Efficiency 50% Price decrease roadmap of GNMC cells of cost reduction planned in 120% the coming 2 years 100% 100% 93% 80% 83% 38% of energy increase per cell while maintaining the same level of performance 60% 40% 20% 0% 2017 H H % 50% The opportunity is now delivering on our strategy 26

27 Our Leadership Team Anil Srivastava CEO Hubert Angleys Bryan Urban Stefan Louis Fabrizio Marzolini Pierre Blanc CFO & COO EVP EVP EVP CTIO Corporate Services Stationary Storage Solutions etransport Solutions Specialty Battery Systems Product Delivery Finance Product Management Product Management Business Development Cell R&D HR EPC: Procurement Engineering Engineering Cell Production Sales Ops FEED, Project Finance Module Production EMS Development EMEA / Americas / APAC: EMEA / Americas / APAC: Supply Chain Quality & EHSS Sales Sales BMS & Software Development Global Customer Services EMEA / Americas / APAC: Project Management, Project Management Pack Assembly IT Sales. EPC: Engineering, Integration MarCom Construction, PM, O&M Homologation & Testing The opportunity is now delivering on our strategy 27

28 Organisational Efficiency Key Performance Indicators 1.5X 100% + 50% 100% Increase in Revenue increase in Gross improvement in Opex improvement of per employee in 2018 Margin per employee as % of the Revenue EBITDA as % of the in 2018 Revenue in 2018 The opportunity is now delivering on our strategy 28

29 Fully Funding the Business Plan 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 The opportunity is now delivering on our strategy 29

30 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 CHF 50 million facility to finance acquisitions and joint ventures with ROFO right The opportunity is now delivering on our strategy 30

31 2018 and 2019 Outlook

32 Leclanché market Addressing a market over 15GWh and growing at 37% CAGR opportunities 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 Utility-Grid Services Island Microgrid EV Fast-Charging Integration Grid-tied Microgrid Utility T&D Reliability E-Truck E-Train E-Bus Off-Road Equip Material Handling E-Marine EV s 2018 and 2019 Outlook 32

33 Capitalising on our uniqueness Unique integrated technology from cell design to megawatt delivery with in-house software and systems integration 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 2018 and 2019 Outlook 33

34 Growth drivers Revenue growth drivers Profit 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 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 2018 and 2019 Outlook 34

35 Financial Outlook Double revenue in 2018 and 2019 CHF 40-50m in 2018, CHF m in 2019 Increase corporate funding CHF m targeted by the end of 2018 EBITDA positive by 2020, 50% loss reduction in 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 2018 and 2019 Outlook 35

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