2012 - Saft

Saft Groupe SA
Half year results 2012
Paris, July 25th, 2012
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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
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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
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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
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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
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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
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Saft Groupe SA – Half year results 2012
2. Financial review
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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
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Saft Groupe SA – Half year results 2012
(29.8)
6.9
3. Li-ion business development
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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
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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
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Saft Groupe SA – Half year results 2012
4. Strategic developments
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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
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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
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Saft Groupe SA – Half year results 2012
5. Outlook
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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
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Saft Groupe SA – Half year results 2012
Appendices
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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
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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