2012 - Saft
Transcription
2012 - Saft
Saft Groupe SA Half year results 2012 Paris, July 25th, 2012 Disclaimer This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements, including assumptions, opinions and views of the Company or cited from third-party sources, contained in this presentation are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated development. Neither the Company nor any of its parent or subsidiary undertakings or any such person’s officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of its parent or subsidiary undertakings or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. This presentation is directed, in the United Kingdom, only at investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), high net worth entities, or persons falling within Article 49(2) of the Order or, in the United States, only at "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933, as amended. The information contained in this presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for or purchase the securities discussed herein in any jurisdiction. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or commitment whatsoever. 2 Saft Groupe SA – Half year results 2012 Agenda 1. Half year 2012 highlights 2. Financial Review 3. Li-ion business development 4. Strategic developments 5. Outlook 3 Saft Groupe SA – Half year results 2012 1. Half year 2012 highlights 4 Saft Groupe SA – Half year results 2012 Q2 2012 Challenging markets offset by positive FX Growth % €m Q2 2011 At current exchange rates At constant exchange rates IBG 91.7 89.9 1.9% (2.9)% SBG 74.2 71.0 4.5% (1.5)% 165.9 160.9 3.0% (2.3)% 314.8 311.6 1.0% (2.5)% H1 sales 5 Q2 2012 Saft Groupe SA – Half year results 2012 H1 2012 Profitability impacted by Jacksonville start-up costs 6 months ended 30 June €m 2012 2011 Sales* 314.8 311.6 (2.5)% 50.3 54.5 (7.7)% 16.0% 17.5% Net income 20.0 15.8 EPS (€ per share) 0.79 0.62 EBITDA (as reported) EBITDA margin * At actual exchange rates, except for sales growth which is at constant exchange rates 6 % Growth Saft Groupe SA – Half year results 2012 26.6% Industrial Battery Group Progress in ESS market partly offset slowdown in SNB H1 2012 H1 2011 Sales* €m Sales* growth% EBITDA €m EBITDA margin% Sales* €m EBITDA €m EBITDA margin% 176.1 (3.7)% 16.4 9.3% 177.6 25.3 14.2% Growth by segment* 2011 2012 3.2% (1.1)% 82.0 87.9 66.2 (25.2)% 65.8 29.4 Stationary back-up power (incl. ESS) Transportation * Sales in million Euros at actual exchange rates, sales growth at constant exchange rates 7 Saft Groupe SA – Half year results 2012 22.4 Small nickel batteries Industrial Battery Group Standby Sales growth driven by Energy Storage market Flat sales of nickel standby power batteries following very strong growth in 2011 Growth in US, Asia and M.E.A, Europe weaker Transportation Sales in line with 2011 but stronger order intake Small nickel batteries Strong decline in H1 sales to lessen in H2 Nickel surcharge negative impact on H1 2012 sales of (4)% Profitability Impacted by higher than expected loss from Jacksonville (€7.5m incremental loss YoY) Impact of lower sales offset by some nickel and FX tailwinds Jacksonville €8.6m Li-ion sales linked to Jacksonville (2.7% of H1 2012 sales) Initial low manufacturing efficiency and high start-up costs H2 loss will be significantly reduced 8 Saft Groupe SA – Half year results 2012 Specialty Battery Group Record profitability H1 2012 H1 2011 Sales* €m Sales* growth% EBITDA €m EBITDA margin% Sales* €m EBITDA €m EBITDA margin% 138.7 (1.0)% 35.7 25.7% 134.0 32.2 24.0% Growth by segment* 2011 (0.2)% 2012 (2.8)% 99.2 95.2 39.5 38.8 Civil Military * Sales in million Euros at actual exchange rates, sales growth at constant exchange rates 9 Saft Groupe SA – Half year results 2012 Specialty Battery Group Civil activities Weaker market has reduced civil electronics sales US metering activity growing, slowdown in China Growth momentum in space activity continues Flat sales in the US, Europe and Asia weaker Military activities Stronger project based business, Li-ion and underwater systems Limited slowdown in recurring business Profitability At record level, due to a stronger US dollar 10 Saft Groupe SA – Half year results 2012 2. Financial review 11 Saft Groupe SA – Half year results 2012 Increased profitability of traditional activities offset by Jacksonville losses 6 months ended 30 June €m 2012 2011 Sales 314.8 311.6 Cost of Sales (226.9) Gross profit 87.9 93.9 Gross profit margin % 27.9% 30.1% Operating costs* (55.1) (54.4) EBIT 32.8 39.5 Depreciation and amortization 17.5 15.0 EBITDA 50.3 54.5 16.0% 17.5% EBITDA margin % * Sales, marketing, G&A, R&D costs 12 (217.7) Saft Groupe SA – Half year results 2012 Strong increase in net income 6 months ended 30 June 2012 2011 EBIT 32.8 39.5 Other operating and restructuring income / expenses (0.1) (0.3) Operating profit 32.7 39.2 Net finance costs (4.9) (6.9) €m Share of profit / (loss) of associates (ASB group) 0.8 Income tax expense from continuing operations (8.4) (9.0) Net profit from continuing operations 20.0 24.1 Net profit / (loss) from discontinued operations Net income 13 0.6 Saft Groupe SA – Half year results 2012 20.0 (8.3) 15.8 Net debt evolution Net debt at Operating Change in Dec 31,2011 cash flow * working capital Capex (gross) DoE grant Dividend Others Net debt at June 30, 2012 (43.1) (4.8) (121.7) - (50,0) (23.3) (100,0) (69.6) 42.0 (150,0) (200,0) (250,0) * After interest and income tax 14 Saft Groupe SA – Half year results 2012 (29.8) 6.9 3. Li-ion business development 15 Saft Groupe SA – Half year results 2012 Summary of progress Saft selected for 10 MWh of Energy Storage Systems during Q2 – mainly in Europe No reduction in number of ESS opportunities Combination of grid scale projects and residential systems Europe and US both active Telecom 18 operators currently testing our Li-ion product Defense Saft awarded Ground Combat Vehicle Li-ion development program by BAe Systems Jacksonville 2nd production line to start production of SLFP® (Iron phosphate) cells in Q3 16 Saft Groupe SA – Half year results 2012 Rail trackside energy project, Philadelphia An attractive financial return Septa transportation authority objective to reduce energy intensity and GHG emissions. Saft Intensium Max20 battery system used to store braking energy from suburban trains. Optimized use of excess stored energy through sale back to grid. Septa multiple economic benefits: Supply savings Market revenues for : • “Demand/response” service • Frequency regulation service Simple payback : 3 to 5 years 17 Saft Groupe SA – Half year results 2012 4. Strategic developments 18 Saft Groupe SA – Half year results 2012 Strategic developments (1/2) Decision taken to initiate sale process of small nickel battery business Non strategic markets for Saft Saft to focus effort and resources on higher value-added products and markets Sale process to be launched end of July Strategic Li-ion cell production activity at Nersac to be retained Automotive Decision to address three specific markets: • Buses and commercial vehicles (HEV and EV) • “Affordable” micro-hybrids (small low voltage batteries for passenger cars) • Limited series and competition vehicles Additional sales anticipated from 2014 19 Saft Groupe SA – Half year results 2012 Strategic developments (2/2) Russia Saft to create a subsidiary in Russia in H2 to address IBG markets Rail market seen as first target including local added value assembly South-Africa Multi-year agreement signed with local partner Alkaline Batteries to assemble standby power batteries for the local electricity utility 20 Saft Groupe SA – Half year results 2012 5. Outlook 21 Saft Groupe SA – Half year results 2012 More challenging market conditions impact 2012 sales growth 2012 €m FY 2011 H1 2012 Sales growth* 7.1% (2.5)% EBITDA margin 16.5% 16.0% Initial Guidance 5% 16.5-17.0% Revised Guidance 2% unchanged Sales linked to Jacksonville will exceed initial objective of 2,5% of sales * Sales growth rates at constant exchange rates 22 Saft Groupe SA – Half year results 2012 Appendices 23 Saft Groupe SA – Half year results 2012 The Saft Group in H1 2012 - Key figures Industrial standby Telecommunication Defence Space Specialty Battery Group €138.7m 44% H1 2012 €314.8m Industrial Battery Group €176.1m 56% Rechargeable nickel and lithium-based batteries for demanding industrial applications. High performance primary and rechargeable lithium and silver batteries for the electronics, defence and space industries. Clean energy storage Aviation Metering and Professional Electronics Emergency Lighting Rail and Mass Transit Joint-Ventures: - ASB Group Thermal batteries Equity accounted 24 Saft Groupe SA – Half year results 2012 Statement of cash flows 6 months ended 30 June €m 2012 2011 Net cash provided by operating activities Purchase of intangible assets Purchase of property, plant and equipment Other Net cash used in investing activities 18.7 (5.0) (25.1) 0.3 (29.8) 27.4 (3.7) (39.4) (43.1) Net proceeds from Capital increases 25 - 2.3 Bank debt reduction Grants related to assets Dividend paid Others (119.1) 6.9 (43.1) (0.2) 15.2 (17.6) (0.6) Net cash generated from/(used in) financing activities (155.5) (0.7) Net increase/(decrease) in cash from continuing operations Net increase/(decrease) in cash from discontinued operations Cash at start of period Exchange gains / (losses) Cash at end of period (166.6) 267.2 (1.4) 99.2 (16.4) (22.9) 194.6 (3.6) 151.7 Saft Groupe SA – Half year results 2012