Corporate Presentation
January 2017
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
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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.
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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
company confidential – 2016
Who we are
Leclanché at-a-glance
We are experts in energy
storage, with a focus on
strategic growth markets
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 deliver fully-integrated solutions to address the highest
growth market segments including delivery of energy storage-as-a-service and enabling
despatchable renewable power
We have capabilities 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 highperformance, infrastructure-grade, sustainable, safe, efficient and cost effective energy storage
solutions, demonstrating the turn-key delivery of complex projects
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 have proprietary, marketleading 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 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
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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**
> 450MWh pipeline
of identified and expected projects through 2018*, with
85MWh backlog of deliveries due in 2017
> 75% revenue growth
expected in 2017, following on from preliminary
revenue growth of approximately 60% in 2016
> 150 FTEs
including 50 engineers (5 PhDs),
with 20 in software development,
operating from offices located in
Switzerland, Germany and Belgium
> 100 patents
granted or filed covering our
proprietary Lithium-ion technology,
our manufacturing processes and our
systems expertise
> CHF 150 million
total invested and committed by shareholders
since June 2010
> 100 years
company history, with rich heritage as one of
the oldest battery manufacturers in the world
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*Please
company confidential – 2016
refer to page 32 for more information on our pipeline. **Source : Navigant Research.
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
>450MWh pipeline of identified and expected projects through 2018**, with 85MWh backlog of
deliveries due in 2017; preliminary revenue growth of c.60% in 2016 with >75% growth expected in 2017
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 32 for more information on our pipeline.
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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
company confidential – 2016
The global Li-Ion energy storage market is growing rapidly, driven
by utility-scale generation and the electrification of transport
Global Lithium-Ion battery installed capacity by application
GWh
80
75.5
The Li-ion market for
stationary and industrial
mobility applications is
forecast to grow 37%
annually to 75.5GWh by
2025
70
60
Buses, Trucks and Materials
Handling Vehicles
58.3
Residential Energy Storage
50
45.5
40
36.0
Commerical & Industrial
Buildings
28.9
30
21.4
20
Microgrids
15.7
11.9
7.5
10
Utility-Scale
4.4
0
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Source: Navigant Research
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company confidential – 2016
We have a sharpened focus on high growth end-markets
44% CAGR to $18 billion in 2020
Utility-scale generation
& microgrids
• Micro-grids: renewable integration
• Grid stabilisation and peak shifting
Commercial & industrial
battery systems
eTransport
• Commercial and industrial, including forklifts
and automated guided vehicles (AGVs)
• Fleets of buses, trains & trams
• Ferries and tugboats
• Residential storage, solar lighting, medical,
telecoms, security & defence
• Cranes, mining vehicles
• Branded consumer (selected markets)
5.0
8.0
3.0
2.0
0.9
6.0
3.0
0.0
2020
4.0
2.0
1.8
0.0
2016
6.0
6.0
GWh
9.0
GWh
GWh
4.0
1.0
11.3
12.0
4.2
1.7
0.0
2016
2020
2016
2020
Source: Navigant Research.
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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
company confidential – 2016
Our common technology stack is applicable
across multiple markets
Asset planning & management software
Commercial & industrial
battery systems
Utility-scale
generation &
microgrids
Common, modular ‘building
block’ technology – with
capabilities to integrate all
storage technologies
Solutions delivery, including financing & EPC*
Systems integration and engineering expertise
Our systems integration
business is cell chemistry
agnostic and encompasses
other evolving energy
storage technologies
Proprietary Lithium Titanate
Oxide (LTO) cells for leading
performance in long-life and
rapid-charge applications
(sole manufacturer in Europe)
eTransport
Battery management system (BMS)
Module design
Proprietary G-NMC**
cells for energy
intensive applications
Third party battery
cells and other energy
storage technologies
(including 3rd party
sourcing)
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*Engineering, Procurement & Construction.
**Graphite anode and Nickel-Manganese-Cobalt cathode.
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
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eTransport
company confidential – 2016
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)
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 cases
Power intensive, long lasting, rapid
response
Energy intensive, low- or micro- cycle,
bulk storage
Example
applications
• Electric buses, e.g. Brugge
• Behind-the-meter stationary
• Electric ferries
• Grid stability, e.g. IESO Ontario
Integrated 3rd Party Technologies
Examples could include:
 Other battery chemistries (Ni-MH,
Ni-Cd, PbA, Li-ion)
 Hydrogen fuel cells
 Vanadium redox / redox flow
batteries
 Ultracapacitors
• Hybrid solutions for grid
The vast majority of applications use our technology…
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…but we remain flexible to integrate
*Current production performance. Leclanché continues to drive to higher
energy density cells with a development roadmap targeting a 15%
increase to 185Wh/kg in 2H 2017 and >200Wh/kg in 2H 2018
company confidential – 2016
We have invested in complementary technologies & partnerships
to enhance our customer solutions offering & delivery capabilities
Strategic acquisitions and partnerships to increase downstream capabilities for enhanced customer solutions
May-15
Jul-15
Oct-16
Strategic partnership with Visedo
Acquisition of storage developer
Trineuron
Project financing partnership
 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
Jan-15
 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
 Joint R&D activities
Strategic partnership/cooperation
 Partnership with Swiss Green
Electricity Management (‘SGEM’) to
finance projects
 Global platform relationship where
Leclanché is acting as an EPC and
OEM
 First financing announced for 20MW
/ 10MWh Marengo project in North
America
Today
May-15
Aug-15
Strategic cooperation with
Litarion
Acquisition of IP rights from ADStec
 Cooperation announced with
Litarion for the supply of
Graphite and NMC electrodes to
be incorporated into Leclanché’s
Li-Ion cells and systems
Acquisition
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14
 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
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
Risk reduction through commitment to
double-digit percentage annual cost
reductions, aiming to beat competitors’
ASP reductions
Battery Module
Move to lighter, scalable and
cost-competitive modules
Multiple ongoing R&D programs
delivering cost reductions to drive
competitiveness
Battery management systems (BMS)
Single platform across multiple market
applications, with apps for bespoke solutions
Universal platform and standardised
designs where possible; customisation
delivered through software and
integration
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)
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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
 Accredited with international standards for quality management (ISO9001:2015)
and environmental management (ISO14001:2015)
 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
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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
company confidential – 2016
We are building a diverse global customer base
following international demand
Sweden
Finland
The Netherlands
Belgium
Canada
Secured projects plus pipeline
Denmark
Estonia
France
Pipeline only
Czech Republic
USA
Azores/Portugal
Italy
Turkey
Cuba
Switzerland
Barbados
China
UAE
Burma
Saudi Arabia
Singapore
Peru
India
Germany
Sri Lanka
Our secured projects and pipeline* together encompass
over 40 customer engagements across 20+ countries
*Please refer to page 32 for some further information on our pipeline.
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company confidential – 2016
We are growing our pipeline, with substantial
momentum over the past 12 months
Customer traction with project wins across each of our segments
May-15 – European largest
Hybrid power plan, Azores
island, Portugal
Jun-15 – World’s
largest electric
Ferry
Dec-16 – 33MWh
stationary storage
project in Germany
Jul-15 – Autonomous
guided vehicles (AGVs),
Belgium
Jan-16 – World’s
largest grid
ancillary services
project (53MWh),
Canada
Aug-15 – Solar street
lighting, Saudi Arabia
Jan-15
Jan-16
Jul-15 – Stephan
Louis joins as CSO
Aug-15 – Jacques Boppe
joins as VP Corporate
Development
Feb-16 – Hubert
Angleys joins as CFO
Apr-16 – Bryan
Urban joins as EVP
North America
Jun-16 – Stationary
storage for PJM Services
(the largest wholesale
power market in the US),
Chicago USA
Our awarded and
expected projects*
total >450MWh
across 15+ project
deliveries through
2018
*See
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page 32 for more information.
company confidential – 2016
Customer case studies: utility-scale and microgrid
storage applications
Ontario IESO / grid ancillary services
École polytechnique fédérale de Lausanne
Location:
System:
COD:
Lausanne, Switzerland
500kWh LTO BESS
Sep-2015
Location:
System:
Target COD:
• Turnkey BESS for ancillary services, solar PV solar
integration, peak shaving, load management and fast
frequency response
• Fast frequency response for grid reserve /
voltage control services
• 15 years performance warranty by Leclanché on
its G-NMC batteries
• 10 years performance warranty by Leclanché on its LTO
batteries
• Partners include Deltro Energy (electrical and
civil work and PCS) and Greensmith (EMS);
Leclanché providing development Capital and
arranging Swiss Export Credit (SERV)
• Largely co-financed by the Canton of Vaud
Cremzow – primary control reserve
Location:
System:
Target COD:
Ontario, Canada
53MWh G-NMC BESS
Q1-2017 (under construction)
Graciosa energy island / micro-grid
North Germany
22MW / 33MWh BESS
Q4-2017
Location:
System:
COD:
• Turnkey BESS to provide grid frequency control via the
German primary control reserve (PCR) market
Graciosa, Azores Islands, Portugal
3.2MWh LTO BESS
Dec-2015
• 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
• 10 years performance warranty by Leclanché on its BESS
• 2-MW capacity being built by Leclanché as a first phase,
on the basis of Build-Own-Operate-Transfer
• Increase in proportion of renewable generation
used from 15% to 65% of annual consumption
• Exclusivity agreement signed with Major European utility
for implementing the second phase (20MW)
• 20 years performance warranty by Leclanché on
its LTO batteries
• Project partner and DSO: ENERTRAG AG
• Project management and EMS by Younicos,
financing provided by local grants and
Leclanché’s shareholder, Recharge
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company confidential – 2016
Customer case studies: eTransportation
applications
Brugge eBus
Location:
System:
COD:
ÆRØ Ferry Project
Brugge, Belgium
38kWh LTO
Oct-2015
Location:
System:
Target COD:
• First wirelessly charged fully electric buses to
enter public operation in Belgium
• 56m x 12m public eFerry to replace one of the
diesel-powered ferries on route between
Denmark mainland and Ӕrø Island.
• Three VanHool A308E buses equipped with an
LTO battery delivered by Leclanché.
• Will be largest electric ferry in the world with
planned energy savings up to 50% and major
emission reductions
• Project partners included VanHool, De Lijn
(Belgian bus operator) and Bombardier
• Full electric drivetrain provided in partnership
with Visedo
VTT eBus
Location:
System:
COD:
Espoo, Finland
55kWh LTO
Feb-2016
Denmark
4.2MWh G-NMC
Jun-2017
BB Green
Location:
System:
COD:
e b u s
Sweden
200kWh LTO
Q2-2016
• Battery system and integrated BMS for
demonstrator fully electric high speed
commuter ferry
• 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.
• LTO technology means batteries may be fully
charged in as little as 10 minutes
• Full electric drivetrain provided in partnership
with Visedo
• Battery capacity divided into two identical
battery packs for redundancy
• Ferry fully constructed and awaiting deployment
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company confidential – 2016
Customer case studies: eTransport,
commercial and industrial applications
Auto-guided oceanography submarine
Automated guided vehicles (AGVs)
Location:
System:
COD:
•
•
Billund, Denmark
40kWh LTO
Q4-2016
Location:
System:
COD:
Belgium
14.4kWh Third Party G-NMC
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)
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
• Design, testing and all certifications completed,
production underway
charging and remote management software
– Low ecological footprint given favourable battery chemistry and Leclanché’s other
‘green’ credentials
Off-grid street lighting
Off-grid residential storage
Location:
System:
COD:
Island, Sri Lanka
130 kWh, G-NMC
Nov-2015
Location:
System:
COD:
Saudi Arabia
3x700Wh LTO modules
Oct-2015
•
Economical residential storage solution
delivered for a small island in the north of Sri
Lanka
•
In March 2015 Leclanché delivered 200 battery
modules for the project, certified to CE and UN38
safety standards
•
4 battery banks, five 6.7kWh each
•
•
7 year warranty with design life of more than
>5,000 cycles
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
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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
company confidential – 2016
We have demonstrated differentiation
relative to our competitors
Storage
MultiEPC & project
Module, BMS
Balance sheet
solutions as % chemistry cell
systems
pack & rack
strength
of business
capabilities
integration
Segment focus for:
Electric
utilities
Commerical,
Passenger
industrial and
vehicles (EVs)
eTransport
China
Korea 1
Japan 1
Europe
Korea 2
Japan 2
USA
Japan 3
Source: Management.
Strong position
Weak position
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company confidential – 2016
Our transformation into a leading utility-scale energy storage
systems integrator has been publicly recognised
The Navigant Research Leaderboard: utility-scale stationary storage – Published 3Q 2016
FOLLOWERS
CHALLENGERS
CONTENDERS
LEADERS
AES Energy
Storage
NEC Energy
Solutions
RES
S&C Electric
Siemens
LG CNS
Invenergy
GE Energy
ABB
Younicos Storage
Leclanché
NextEra Energy
Resources
Execution
Greensmith
Leclanché is competing
favourably against
companies many
times its size
Doosan Grid Tech
(1Energy Systems)
Strategy
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Source: Navigant Research
company confidential – 2016
Our IP portfolio of patents protects our proprietary LTO
technology and water-based processing methods
 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
Coverage area
IP Coverage
# of patent
families
Patent
family
# patents
granted
Patent
granted
# patents
filed
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
(1) Further separator patents are filed under our Fraunhofer license.
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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
company confidential – 2016
Group organisational structure
Executive Committee
Chief Executive Officer
Anil Srivastava
Innovation Board
Regional functions
Worldwide functions
North America
Bryan Urban, EVP
Product Delivery
Pierre Blanc, CTIO
Finance
Hubert Angleys, CFO
Human Resources
Nathalie-Claire Altherr
EU & RoW
[External to be hired]
(Interim Anil Srivastava)
Customer
Projects Delivery
Fabrizio Marzolini, EVP
Legal
[External to be hired]
Marketing &
Communications
Florent Gaillard
Corporate functions
APAC
[External to be hired]
(Interim Heiko Ross)
Systems R&D
Stefan Louis, SVP
Quality
Health & Safety
Yann Beaufils
Distribution
Sofia Vichot
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company confidential – 2016
Who we are
Recently awarded
“Best CEO in the
energy storage
industry” European
CEO Awards 2016
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 AlcatelLucent
• Masters degree from the National Institute of Technology (IIT) in
India and Executive MBA from the Wharton School of Business
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
Hubert Angleys, Chief Financial Officer
• Joined February 2016
• Formerly CEO and CFO of Metalor, a Swiss corporation with multibillion dollar revenues
• Previously CFO of ALCOA Europe - Geneva and SICPA Group Lausanne
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 MBA
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
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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
company confidential – 2016
We have a large addressable market
supporting our growth opportunity
Estimated market size
Implied market share in 2020
2016
2020
~1%
~5%
~10%
GWh
0.9
4.2
0.04
0.2
0.4
$m
1,200
3,700
40
190
370
GWh
1.8
11.3
0.1
0.6
1.1
$m
2,300
12,600
130
630
1,300
GWh
1.7
6.0
0.1
0.3
0.6
$m
700
1,800
20
90
180
GWh
4.4
21.4
0.2
1.1
2.1
$m
4,300
18,100
180
910
1,810
Utility-scale generation & microgrids
Commercial and industrial systems
eTransport
Total
Implied Leclanché revenue opportunity
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 contracts
already awarded and our pipeline of expected projects*
Awarded and expected
projects
Battery
type
Stationary 1
Market
Segment
Size
(MWh)
Target
Delivery
G/NMC
3
2017
Certification unit; testing underway
eTransport 1 (Ferry)
G/NMC
4
2017
Project awarded; under construction
Stationary 4
G/NMC
10
2017
Project awarded; construction expected to start in Q1-2017
eTransport 2 (Bus)
LTO
5
2017
Term sheet signed Q4-2015; Quality Certification testing completed awaiting purchase order
Stationary 5
G/NMC
41
2017
Project awarded; financing underway
Stationary 6
G/NMC
30
2017
Exclusivity agreement signed with major European utility;
construction scheduled to begin in Q2-2017
eTransport 3 (Ferry)
LTO
4
2018
Project under development
eTransport 4 (Bus)
LTO
14
2018
Project under development
Stationary 7
G/NMC
10
2017/2018
Project under development
Stationary 8
G/NMC
15
2018
Project under development
Stationary 9
TBA
150
2018
Project under PPA discussion
Stationary 10
LTO
50
2017/18
Short-listed for the first phase of 9MWh
Stationary 11
TBA
80
2017/18
Project under development
Stationary 12
G/NMC
30
2018
Project under development
Stationary 13
G/NMC
6
2018
Project under development
Commercial & Industrial 1
G/NMC
2
2018
Project under development
Commercial & Industrial 2
G/NMC
6
2018
Project under development
Total
Pipeline Status (as of January 2017)
462
32
32
*Execution on the pipeline assumes sourcing of required capital, as referenced in Leclanché’s press release
dated 13th April 2016. The Company is exploring various means to raise this capital including corporate
debt, IP licensing fees, off- balance sheet project finance and equity.
company confidential – 2016
We see a positive correlation between
production volume and gross margin
Cumulative gross margin increase as production volume scales*
Gross margin %
 Analysis based on internal
management estimates shows
cumulative gross margin
crossing above 25% at
c.100MWh production and
above 30% at c.400MWh
36%
34%
32%
30%
 Production assumes a mixture
of in-house and planned
outsourced manufacturing
28%
26%
 Pricing assumes cell and
module ASPs reducing by 3-5%
annually from current market
levels
24%
22%
20%
18%
0
100
200
300
400
500
600
700
800
900
1,000
 This is indicative, without
reference to time period, and
not intended as a forecast
Cell and module production (MWh)
*Gross margin calculated using internal management estimates for cell and module production
(including different ASPs and volumes assumed for different chemistries and applications).
33
33
company confidential – 2016
Leclanché has delivered
significant growth in 2016
FYE December 31
CHF millions
65% y-o-y
revenue growth
in H1 2016, plus a
record order
in-take of 75MWh
for delivery
through H1 2017
H1 2015
H1 2016
(unaudited)
MWh delivered
FY2014A
FY2015A
FY2016E
(Preliminary)
n/a
5
30
Total revenue
Growth (y-o-y) %
3.4
5.8
65%
10.8
18.2
69%
>28
~60%
Gross profit
Gross margin %
0.9
25%
1.5
25%
2.8
26%
1.7
9%
-
Personnel costs
Other operating costs
EBITDA
(5.9)
(3.9)
(8.9)
(9.6)
(4.8)
(12.9)
(12.4)
(7.4)
(16.9)
(14.3)
(13.4)
(26.0)
-
Depreciation & amortization
EBIT
(2.4)
(11.4)
(2.7)
(15.6)
(4.6)
(21.5)
(5.8)
(31.8)
-
Interest
Income tax
Net loss
(1.3)
1.4
(11.3)
(1.8)
0.1
(17.3)
(1.9)
(23.4)
(2.7)
(1.1)
(35.6)
-
34
34
Delivery of
30MWh in 2016
Solid revenue
growth of approx.
60% in 2016,
faster than our
addressable
market
company confidential – 2016
Summary balance sheet
Pro forma impact of August 2016 private placement;
CHF 11.1m new equity and CHF 4.1m debt conversion
FYE December 31
H1 2016
(Unaudited)
Pro forma
impact
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
2.1
11.0
9.2
22.3
+11.1
Property, plant and equipment
Intangible assets
Other financial assets
Total non-current assets
13.6
8.5
2.7
24.8
CHF millions
Total assets
47.0
FYE 31 December
H1 2016
(Unaudited)
Pro forma
impact
Accounts payable
Current portion of long-term debt
Other current liabilities
Total current liabilities
12.7
0.8
24.1
37.5
-4.1
33.4
Long-term debt
Pension & other
Total non-current liabilities
0.5
10.9
11.4
CHF millions
33.4
Common stock and paid in capital
Retained earnings and other
Total equity
58.1
Total equity and liabilities
74.6
(76.5)
(1.9)
+15.2
47.0
58.1
13.3
Note: Totals may not sum exactly due to rounding
35
35
company confidential – 2016
Our achievements have positioned us well for
sustainable and profitable growth
Working reference projects in each of our addressable market segments
─ We have achieved this milestone within 18-months of the launch of our growth plan, with case studies across stationary,
electric bus, electric ferry, plus other commercial & industrial application
Higher retained margins through a comprehensive vertically integrated energy storage system (ESS) offering
─ Our wide scope can cover late-stage project development through to system delivery, including a range of battery
systems, power conversion systems and energy management software
─ Notably battery cells are only 30-40% of a large ESS implementation; the rest is electronics, controls, software and
balance-of-plant (e.g. civil works)
Structured access to project finance has been achieved through our newly established global partnership
with SGEM to systematically finance our projects around the world and reduce our capital intensity
─ Independent company with objective to build portfolio of high quality energy storage projects
─ Strong corporate governance and management team
Supply chain flexibility for growth – We have established a cost effective and flexible supply chain with
capacity to deliver record volumes of up to 45MWh of ESS in 2016, up from 5MWh in 2015, growing to
100MWh in 2017
─ We have flexibility to choose between proprietary batteries or use those of third party suppliers
36
36
company confidential – 2016
We continue to benefit from consistent backing
from new and existing shareholders
Indicative pro forma fully diluted shareholding
Shareholders have continued to support us with capital at
increasing valuations, reflecting our progress
(48m shares outstanding, plus conversion of debt)
CHF/Share
3%
2%
14%
3.00
25%
2.86
CHF 11m
4%
2.41
2.50
2.20
12%
1.90
2.00
24%
16%
1.50
CHF 20m
2.68
CHF 6.9m
CHF 8m
CHF 13m
1.50
Golden Partner Group
ACE & Company
(advisor to Golden Partner Fund
SICAV, AVIA SICAV, Bright Cap SICAV)
(after conversion of outstanding
convertible loans into equity)
Logistable Group
Bruellan
Recharge
ADS-TEC GmbH
CHF 17m
1.00
Precept
(Jul-13)
Institutional investors
Recharge
(Dec-14)
Recharge
Facility B
(Dec-14)
December
2015 raise
ACE Facility C August Private
(Mar-16)
Placement
2016
Denotes capital raised
(includes Herald IM, Baring AM, Kleinwort
Benson Investors and Shamir Capital)
(Either equity or debt that is convertible into equity)
Others and free float
Strong shareholder support demonstrates conviction
for Leclanché’s ability to execute
37
37
company confidential – 2016
Our funding is being completed drawing upon a
combination of capital sources
 Limited equity dilution for current shareholders
 Management are working to optimize funding ‘mix’, drawing upon a combination of:
Structured access to project finance – Swiss Green Electricity Management SA (SGEM); other project finance sources
being developed to augment SGEM
Corporate debt including working capital funding; several term sheets are currently under consideration and negotiation
with debt providers offering up to US$ 80m in secured and off-balance sheet financing
Equity, only on favourable terms – from long term institutional investors (including our existing shareholders); CHF 11.1m
of new equity issued in August 2016, with CHF 4.1m early conversion of debt into equity by existing shareholders
Strategic alliances – Funding and reduced capital requirements from strategic alliances (e.g, the recently announced
agreement with Narada Power), including benefits from technology transfer, joint development and possible
manufacturing partnerships (also to provide augmented resources for our China market opportunity)
In aggregate we expect these ongoing initiatives to fully fund
our current business plan
38
38
company confidential – 2016
We recently announced our strategic global
alliance with Narada Power of China
 Leclanché and leading global battery manufacturer Zhejiang Narada Power Source Co Ltd
(Shenzen Stock Exchange) signed a strategic global alliance on 21st November 2016
 We will support Narada with technology transfer to achieve low-cost, scale manufacturing of our proprietary highcycling and fast-charging lithium titanate (LTO) and high energy density graphite nickel manganese cobalt (G-NMC)
battery storage technologies
 Narada will manufacture both G-NMC and LTO cells at its facilities in Hangzhou, China, including the opening of its
new ~2.5 GWh fabrication facility in 2017
─ This will complement manufacturing at our Willstätt Germany and Yverdon-les-Bains Switzerland sites
─ Provides scale and more competitive costings to achieve best-in-class global pricing to meet the needs of multiple end-markets –
including stationary, microgrid, C&I and electric vehicle applications
 Leveraging the fast-charging and high-cycle capabilities of LTO technology, the alliance will aggressively pursue
significant market share in China, the largest electric bus market in the world ($4bn estimated size – Navigant Research)
 Narada will make an equity investment in Leclanché alongside licensing for technology transfer; more details will be
disclosed upon signature of definitive agreements, expected during Q1 2017
The strategic alliance is a strong endorsement for our technology and business,
enabling us to accelerate our growth as one of the world’s leading independent
energy storage solutions groups
39
39
company confidential – 2016
We have a strong growth plan
for 2017 and beyond
 >85MWh volume in 2017 equating to >75% revenue growth – noting that in 2016 our 30+MWh
volume has generated over CHF 28m revenues (preliminary)
─ 6 contracted projects and backlog totalling 85MWh
─ In discussions on a further 350+MWh across several opportunities, of which up to 50MWh has the potential to
convert in 2017 providing some buffer for the current backlog (i.e incremental to 85MWh) plus support for 2018
─ Our eBus opportunity is substantial, but we have only assumed one quarter of recognized revenue
in 2017
 We are continuing to drive margins, so expect some improvements from volume and efficiency gains
 We maintain our expectation of breakeven EBITDA profitability above 100MWh production, currently
envisaged in 2018 (or before)
 Growth targets are subject to:
─ Secured funding for our business plan (see page 38)
─ Sufficient supply chain capacity for cells and modules (including sourcing from 3 rd party suppliers)
 We maintain our focus on capital efficiency and limiting shareholder dilution
as we fund our growth
40
40
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
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 in a range of forms including corporate debt, growth equity, strategic joint ventures and off-balance
sheet project financing – recognizing that access to capital is critical to support the Company’s ongoing operations and continued growth
• Leclanché has confirmed orders of ~85MWh, which represent part of a wider pipeline of awarded and expected projects which provide
visibility of growth through 2017 and 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
• Leclanché’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
• Large project performance guarantees could be 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; breakeven profitability is expected at >100MWh production
• The Company is finalizing licensing agreements for its cell technology and partnership on its upstream cell manufacturing and remains
committed to integrating other upstream technologies to achieve optimal system designs for its customers
42
42
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 shares:
− The Company has limited liquidity and may not have sufficient capital to continue as a going concern
− Leclanché may be unable to:
•
•
•
raise additional capital (debt, project finance, equity, etc)
become profitable or achieve positive cash flow
implement its strategic plans for growth
−
The Company could be subject to liquidation if it fails to take appropriate remedial action
−
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 the confidence of its customers, partners and suppliers, among others
−
The Company 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, including joint ventures for the China market
−
Leclanché has a limited number of customers and operates in limited geographical areas
−
There is arguably substantial overcapacity in the battery manufacturing sector
−
The Company could be exposed to:
• warranty and guaranty claims
• product liability claims
• environmental claims
• tax risks
• intellectual property risks
• litigation risks
43
43
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
44
44
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 infrastructuregrade
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 bestin-class storage solutions for 21st century applications.
45
45
company confidential – 2016
company confidential – 2016