2020

18.05.2020 – Leclanché S.A.

Leclanché announces its unaudited 2019 key figures

Leclanché SA / Key word(s): Interim Report/Annual Results
Leclanché announces its unaudited 2019 key figures

18-May-2020 / 06:55 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Leclanché announces its unaudited 2019 key figures

YVERDON-LES-BAINS, Switzerland, May 18th, 2020 - In its decision of April
29th,
2020, SIX Exchange Regulation AG had approved an extension of the
publication deadline of Leclanché's 2019 annual report until June 15th,
2020, and had requested Leclanché (SIX: LECN), one of the world's leading
providers of energy storage solutions, to publish its 2019 key figures until
May 18th, 2020.

Unaudited consolidated income for the financial year 2019 were CHF 16.3
million, down from CHF 48.7 million in 2018; the unaudited EBITDA loss for
the year was CHF (58.9) million compared to CHF (39.1) million in 2018; the
unaudited 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) the decision by Leclanché to build
this project under a "Build-Own-Operate" (BOO) business model, which has
resulted in no revenue recognition for the period as required under IFRS
accounting rules, (iii) 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 of Willstätt in Germany.
While the above-mentioned reasons had a negative impact on 2019 revenues of
approximately CHF 50 million, the decision to build projects such as St.
Kitts under a BOO model, aims at providing long-term profitability
improvements from 2022 onwards.

The unaudited 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 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 announced
on May 4th, 2020 that it had addressed this over-indebtedness situation by
obtaining a subordination of CHF 29.8 million of the debt provided by FEFAM
[1], Leclanché's majority shareholder, and that it was in active
negotiations to obtain commitments from other potential investors.

Anil Srivastava, CEO of Leclanché said: "The technical nature of the revenue
shift from 2019 doesn't affect our business fundamentals. It is also
important to note that no projects have been lost and the revenue not
recognized in 2019 will be recognized in 2020. The combined order book,
excluding St. Kitts project, now exceeds CHF 90 million, for delivery over
the years 2020 to 2021.

After reviewing the return on investments in the Stationary Storage business
over the last few years, the Company has taken the profound decision to
create a "Build-Own-Operate" projects business line for selected stationary
projects which have long-term Power Purchase Agreements (PPA) and/or Offtake
Agreements with local customers. This change will add significant positive
EBITDA to the Company's financial results for many years from the operation
of the PPA Projects. The first project we will build under this new model
will be in St. Kitts and Nevis.

In the electric transport segment, we have already signed multi-year
agreements with international partners, notably in India with a major
automotive integrator, in Europe with Bombardier and another strategic rail
customer, with Skoda Electric in the field of electric buses and with
Kongsberg Maritime and other renowned shipyards. Moving beyond the trial and
test phases, this market is growing substantially worldwide as governments
are setting increasingly clear guidelines to steer the industry towards
green technologies.

A detailed letter to the shareholders shall be published shortly covering
further details of the "Build-Own-Operate" business model, the strategic
reorganization announced on September 26th, 2019 and funding of the business
plan."

The Company remains confident that it will be able to publish its full 2019
annual report before or on June 15th, 2020.

For more information, write to info@leclanche.com or visit www.leclanche.com.

* * * * *

About Leclanché
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

Disclaimer
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.

   Contacts
   Media contacts:
   Switzerland/Europe/global:       North America:
   Thierry Meyer T: +41 (0) 79      Rick Anderson T: +1-718-986-1596 Henry
   785 35 81 E-mail:                Feintuch T: +1-212-808-4901 E-mail:
   [1]tme@dynamicsgroup.ch  1.      [1]leclanche@feintuchpr.com  1.
   mailto:tme@dynamicsgroup.ch      mailto:leclanche@feintuchpr.com
   Germany: Christoph Miller T:     Investor Contacts: Anil Srivastava /
   +49 (0) 711 947 670 E-mail:      Hubert Angleys T: +41 (0) 24 424 65 00
   [1]christoph.miller@sympra.de    E-mail:
   1.                               [1]invest.leclanche@leclanche.com  1.
   mailto:christoph.miller@sympr    mailto:invest.leclanche@leclanche.com
   a.de
[1] 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".


---------------------------------------------------------------------------

End of ad hoc announcement

---------------------------------------------------------------------------

close