Sales up by 14.1% as reported and by 3.9% at constant

Sales up by 14.1% as reported and by 3.9% at constant exchange
rates in the third quarter of 2015.
Paris, October 22, 2015 – Saft, leader in the design, development and manufacture of
advanced technology batteries for industry, announces its revenue for the third quarter ended
30 September 2015.
Key figures

Third-quarter revenue totalled €178.9 million, an increase of 14.1% as reported
and 3.9% at constant exchange rates.

Over the first nine months of the year, revenue totalled €549.7 million, an
increase of 12.9% as reported and 1.5% at constant exchange rates.
Outlook

A slowdown in sales is expected in the fourth quarter in several markets,
particularly in the oil and gas and energy storage markets (ESS).

Full-year revenue is now expected to show slight growth at constant exchange
rates, and an EBITDA margin around 14.5% is anticipated.
Ghislain Lescuyer, Chairman of the Management Board, said: “In the third quarter sales grew
by 14.1% as reported. Sales during the period were mainly driven by our civil electronics
activities and by industrial standby and telecommunication networks. The growth in these last
two segments is nevertheless below our expectations, due to a slowdown in demand in the
oil sector affecting sales of batteries for industrial standby applications and delays in
deliveries of batteries for telecom networks.
In this context and in a market environment that has become more challenging for some of
our activities and geographical areas, we now anticipate limited growth in 2015 sales at
constant exchange rates and an EBITDA margin of around 14.5% of full-year sales.
As announced last July, I will present an update of our strategic priorities on the 16th of
November, together with a set of initiatives for operational transformation as well as our
medium term objectives.”
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Third-quarter and nine-month revenue, by division
Q3 2015
(€ million)
Change
in %
YTD as of 30 Sept. 2015
(€ million)
Change
in %
Q3 2015
Q3 2014
At current
exchange
rates
At constant
exchange
rates
Total as of
30 Sept.
2015
Total as of
30 Sept.
2014
At current
exchange
rates
At constant
exchange
rates
IBG
107.8
92.5
16.5%
6.3%
328.7
298.0
10.3%
(0.8)%
SBG
71.1
64.3
10.6%
0.5%
221.0
188.9
17.0%
5.2%
Total
178.9
156.8
14.1%
3.9%
549.7
486.9
12.9%
1.5%
Revenue is expressed at current exchange rates.
The average euro/dollar exchange rate was €1 for $1.11 in Q3 2015, compared with €1 for $1.35 in Q3 2014. In the nine
months to 30 September 2015, the average rate was €1 for $1.11, compared with €1 for $1.33 in the nine months to 30
September 2014.
Industrial Battery Group (IBG)
Third-quarter revenue totalled €107.8 million, an increase of 16.5% as reported and 6.3% at
constant exchange rates.
Stationary applications
Revenue from batteries for stationary backup applications and energy storage systems
increased by 15.0% at constant exchange rates.
Sales of batteries for industrial standby applications continued to grow in the third quarter,
despite the greater-than-expected negative impact of declining demand in the oil sector.
Telecommunication networks market revenue rose sharply compared with the same period of
2014, driven by high sales of lithium-ion batteries in India. However, deliveries of batteries for
telecom networks were below expectations in both lithium-ion and nickel technologies due on
the one hand to difficulties in the supply chain and in production, currently being resolved,
and on the other hand to delays in certain projects in the United States.
Lastly, sales of Li-ion batteries for energy storage (ESS market) increased sharply compared
with the third quarter of 2014, although their contribution remained small in value.
Transportation
Transportation markets experienced a decrease of 3.5% in revenue at constant exchange
rates in the third quarter. This stemmed from a sharp decline in sales in the industrial
vehicles segment, while sales in the aviation and rail markets continued to rise over the
quarter, albeit at a moderate pace.
Specialty Battery Group (SBG)
At €71.1 million, the SBG division’s revenue was up 10.6% as reported and 0.5% at constant
exchange rates.
Civil electronics
Revenue grew by 4.2% at constant exchange rates in the civil electronics markets. The
slowdown in the growth of this segment relative to the first half year of 2015 resulted mainly
from the fact that production capacity was not sufficient for us to fully meet the increased
demand for certain products.
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Space & defence
The space and defence markets recorded a 7.8% decline in overall revenue, attributable
primarily to the drop in sales of primary lithium batteries for portable military equipment, but
also, to a lesser extent, to slower trading in the space segment.
Outlook for 2015
The outlook in the fourth quarter of weaker demand for nickel batteries for stationary backup
applications and lower sales of lithium-ion batteries for energy storage systems (ESS market)
leads the Group to now expect limited growth in sales for 2015 at constant exchange rates,
and an EBITDA margin around 14.5% of annual sales.
2015/2016 financial calendar
Update of strategic priorities
16 November 2015
2015 revenue and earnings
18 February 2016
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS
Certain statements contained herein are forward-looking statements including, but not limited to,
statements that are predictions of or indicate future events, trends, plans, objectives or results of
operations. Undue reliance should not be placed on such statements because, by their nature, they
are subject to known and unknown risks and uncertainties, and can be affected by other factors that
could cause actual results and Saft’s plans and objectives to differ materially from those expressed or
implied in the forward looking statements.
About Saft
Saft (Euronext: Saft) is a world leading designer and manufacturer of advanced technology batteries
for industry. The Group is the world’s leading manufacturer of nickel batteries and primary lithium
batteries for the industrial infrastructure and processes, transportation, civil and military electronics
markets. Saft is the world leader in space and defence batteries with its Li-ion technologies which are
also deployed in the energy storage, transportation and telecommunication network markets. More
than 4,000 employees in 18 countries, 14 manufacturing sites and an extensive sales network all
contribute to accelerating the Group’s growth for the future.
Saft batteries. Designed for industry.
www.saftbatteries.com
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Press contacts:
Saft
Jill Ledger, Corporate Communications and Institutional Relations Director
Tel.: +33 1 49 93 17 77, [email protected]
Vannara Huot, Investors Relations Manager
Tel.: +33 1 49 93 17 10, [email protected]
Brunswick
Naomie Rozenbaum, Tel.: +33 1 53 96 83 94
Benoît Grange, Tel.: +33 1 53 96 83 89
Guillaume Le Tarnec, Tel.: +33 1 53 96 83 73
E-mail: [email protected]
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