Leclanche Sa · SIX:LECN
Leclanche Sa — Shareholder Meeting (June 2021)
50 slides from Leclanche Sa's shareholder meeting presentation, Jun 30, 2021
Slide 1: Annual General Meeting of Leclanché S.A. Shareholders
Annual General Meeting of Leclanché S.A. Shareholders 30th June 2021 © Leclanché SA 2021 - Slide 1
Slide 2: Agenda
Business Operations Update Going Forward: 2021 & beyond 2020 Financial Summary Slide 2 AGENDA
Slide 3: Leclanche At-a-Glance
Leclanche At-a-Glance …Enabling electrification… … an undeniable market opportunity… …captured by the best player in the space Trains/ Locomotives Fully integrated 200+ Patents battery system 9 years of Global shift to vehicle producer knowhow in large- electrification and Cells • Packs • Maritime S
Slide 4: Vertical Integration Enables Greater Customization, Market Penetration & Margin Advantage
Vertical Integration Enables Greater Customization, Market penetration & Margin Advantage Unique R&D and design capabilities across the complete battery system Leclanché Vertical Integration Enables Control of the Full Process Formulation with Lithium-ion Cells Modules Electronics Battery Packs EMS*
Slide 5: Trusted Customer Partnerships based on comprehensive offer
Trusted Customer Partnerships based on comprehensive offer Broad-based strategic customers across the global battery value chain Existing & Long-term Strategic Partnerships with Leading OEM Customers Marine Customers Ground Transport Customers Stationary Storage Customers Fast EV Charging Infrastruc
Slide 6: Highest Level of Certifications, Safe & Reliable Performance
Highest Level of Certifications, Safe & Reliable Performance Corporate Certifications Industry Certifications • ISO 9001:2015 • Marine type approvals Quality management System • ISO 14001:2015 Environmental management System • ISO 45001:2018 Occupational health and safety management system • Railway
Slide 7: eTransport Solutions: winning strategic customers worldwide
eTransport Solutions: winning strategic customers worldwide eMarine Successes in 2020 ► Leclanché has delivered & commissioned 7 vessel battery systems in 2020 with a combined capacity of nearly 30MWh ► Vessels have been commissioned in shipyards around the world such as China, Romania, Norway & Sco
Slide 8: eTransport Solutions: winning strategic customers worldwide
eTransport Solutions: winning strategic customers worldwide eGround Transport Successes in 2020 ► Leclanché has developed a best in class flexible, modular product range INT-39, 53 & 105 to address multiple target markets ► Products operating in long life applications generating recurring long-term
Slide 9: eMarine looking forward
eTransport eTransportSolutions: Solutions:winning winningstrategic strategiccustomers customersworldwide worldwide eMarine looking forward ► Reduce customer TCO through unmatched cell performance and deploy differentiated profitable digital IoT services ► Gain market share by leveraging experiences
Slide 10: eGround 2021 looking forward
eTransport Solutions: winning strategic customers worldwide eGround 2021 looking forward ► Leclanché secured purchase order with Canadian Pacific Rail for Hybrid locomotives ► Won the first 5 of 50< battery systems for French rail retrofit project. Exponential growth in the rail & locomotive market
Slide 11: Stationary Storage Solutions: growth momentum built on strong credentials
Stationary Storage Solutions: growth momentum built on strong Credentials • 150 MWh installed, 76GWh of annual energy throughput • Leading Energy Management Software (EMS)- enabling revenue stacking and extended battery life management • Multi-platform design, integration, end-to-end solution with L
Slide 12: Green Power Plants: Solar/Wind + Storage Microgrid
Green Power Plants: Solar/ Wind + Storage Microgrid Displacing Fossil Fuels For Electricity Generation ► Dispatchable green electricity- as & when needed- solving the demand & generation gap ► Leclanché’ proven design and experience of commissioning one of the first Battery-based Energy Storage Syst
Slide 13: EV-Charging
EV-Charging Enabling Fast and Ultra-Fast EV Charging ► Average Charger Power is set to increase 4-fold from 75kW to 300kW by 2030 ► Avoiding massive cost and delay in upgrading Grid infrastructure ► Accelerating and enabling Green Mobility ► Leclanché' offer covers all forms of Transport, including
Slide 14: Utility-scale
Utility-scale More dispatch of Renewable energies in the Grid ► Grid Ancillary Services ► Replacing Gas Peakers ► Addressing Power-to-Gas demand to generate and store Green Hydrogen ► Saving wastage from ‘curtailment’ ► Leclanché has strong install base of more than 150MWh around the world CONFIDENT
Slide 15: Leclanché Stationary Storage Solutions enabling ESaaS
Leclanché Stationary Storage Solutions enabling ESaaS SOFTWARE Leclanché Energy Management System (LEMS) Control READILY APPLIED TO ALL MARKETS HARDWARE Advanced Battery Solution (LeBlockTM) - Cost Competitive - Fully Integrated - Scalable - FAST Deployment CONFIDENTIAL © Leclanché SA 2020 - Slide 1
Slide 16: Modular and scalable concept
► Modular and scalable concept ► Plug & Play: easy to interconnect ► Simplified logistic ► Fast installation on site ► Integrated Battery Auxiliaries ► Reduced Carbon Footprint ► Optimized LCOE CONFIDENTIAL © Leclanché SA 2020 - Slide 16
Slide 17: Different Blocks to build LeBlock
Different Blocks to build LeBlock™ CONFIDENTIAL © Leclanché SA 2020 - Slide 17
Slide 18: Agenda
Business Operations Update Going Forward: 2021 & beyond 2020 Financial Summary Slide 18 AGENDA
Slide 19: Key priorities: 2021 & beyond
Key priorities: 2021 & beyond 1 Putting the investment and loss in perspective 2 Strategic customers and USD 0.5 billion product pipeline de-risk profitable growth 3 Competitive Cost-base de-risk profitable growth 4 Strategic expansion into Automotive sector to gain scale and long term competitivity
Slide 20: Putting the investments and loss in perspective (1 of 2)
1 Putting the investments and loss in perspective (1 of 2) It is a Scale-Business Increased turnover level to break-even is driven by significant reduction in Average Selling Price over past five years ► 2020 volume-weighted battery pack price has fallen by 53% over 2016-2020(1) ► Leclanché estimate
Slide 21: Putting the investments and loss in perspective (2 of 2)
1 Putting the investments and loss in perspective (2 of 2) It is a Scale-Business ► Leclanché has invested ca. CHF 110 million in R & D, Engineering, Capex, M & A ► Delay in reaching the critical-scale: inability to fully funding the three-year’s business plan in one-go. Annual funding agreements wi
Slide 22: Key priorities: 2021 & beyond
Key priorities: 2021 & beyond 1 Putting the investment and loss in perspective 2 Strategic customers and USD 0.5 billion product pipeline de-risk profitable growth 3 Competitive Cost-base de-risk profitable growth 4 Strategic expansion into Automotive sector to gain scale and long term competitivity
Slide 23: Robust Growth founded on USD 0.5 billion of Contracted Revenue
2 Robust Growth founded on USD 0.5 billion of Contracted Revenue Our USD 3.1 billion product pipeline is bolstered by established key customer relationships Strong Pipeline of Opportunities USD 3,138 M USD 562 M eTran: USD 2,107 M | Stat: USD 1,031 M eTran: USD 347 M | Stat: USD 215 M Total Contract
Slide 24: Key priorities: 2021 & beyond
Key priorities: 2021 & beyond 1 Putting the investment and loss in perspective 2 Strategic customers and USD 0.5 billion product pipeline de-risk profitable growth 3 Competitive Cost-base de-risk profitable growth 4 Strategic expansion into Automotive sector to gain scale and long term competitivity
Slide 25: Competitive Cost-base: effect of large scale manufacturing
3 Competitive Cost-base: CHF 110 million invested during past five year in R & D, Engineering, Industrialization, and Certifications Umlaut AG (leading engineering consultancy firm) mandated to review the cost structures of cell manufacturing when moving to large volumes: ► Deep analysis covering te
Slide 26: Competitive cost-base driven by increasing energy density of cells
Competitive cost-base driven by increasing energy density of cells Technology Leadership Materials with lower carbon footprint and energy-saving Lithium Cells- ready to enter the automotive sector processing steps will make the batteries more sustainable ► Development driven by sustainability in mat
Slide 27: Competitive cost-base driven by next generation battery module design
Competitive cost-base driven by next generation battery module design and production processes Technology Leadership Modules-crucial building block to design a wide range of solutions for electric vehicles FSS ► Production - Designed for high volumes ► Energy density (Wh/kg) - 15 to 20% improvement
Slide 28: Competitive cost-base driven by industry leading battery management system
Competitive cost-base driven by industry leading battery management system Technology Leadership Leclanché battery management system (BMS) and internet of things (IOT) platform Hardware Software User interface In-house software platform for Master battery and energy management takes the batteries in
Slide 29: Competitive cost-base driven by Smart Energy Management Software Architecture
Competitive cost-base driven by Smart Energy Management Software Architecture Technology Leadership Energy Management System Black Start Islanding Self Consumption Grid Battery charging optimization forming Carbon emission reduction ► Smart Energy Management Solar drives the Energy Transmission PV ►
Slide 30: Competitive cost-base driven by large-scale production processes and capacity
Competitive cost-base driven by large-scale production processes and capacity Industrial Capacity Ramp-up Cells ► Existing line installed in 2012, which a capacity of up to 1 million cells per year. ► Initial line was designed to be extended within existing buildings. Capacity expansion ► Brown fiel
Slide 31: Competitive cost-base driven by large-scale production: Modules
Competitive cost-base driven by large-scale production processes and capacity Industrial Capacity Ramp-up Modules ► Introduction of a new production line for the latest generation of modules for transport applications. 6x the capacity (up to 0.5 GWh/year) and further expandable. ► Designed in a simu
Slide 32: Competitive cost-base driven by 80% shared technology stack
Competitive cost-base driven by 80% shared technology stack while serving multiple markets Industrial Capacity Ramp-up Packs & Racks Industrial scale ► Close to 80% of the content of packs and racks are common technology. and highly automated ► The assembly of packs and racks is a low production aut
Slide 33: Key priorities: 2021 & beyond
Key priorities: 2021 & beyond 1 Putting the investment and loss in perspective 2 Strategic customers and USD 0.5 billion product pipeline de-risk profitable growth 3 Competitive Cost-base de-risk profitable growth 4 Strategic expansion into Automotive sector to gain scale and long term competitivity
Slide 34: Expansion into Passenger EVs, Reaching Competitive-Scale
4 Expansion into Passenger EVs, Reaching Competitive-Scale Entry led by proven technology leadership ► Almost doubles future addressable market with massive potential. ► Adds substantial scale to procurement activities reducing overall product costs for our other eTransport verticals. Automotive Mar
Slide 35: Key Takeaways
Key Takeaways 1 Strategic customers and product pipeline de-risk profitable growth 2 Competitive Cost-base de-risk profitable growth 3 Ongoing capital raise led by a US Investment Bank based to fully fund Business plan through to EBITDA breakeven in 2023 4 Significant opportunities to monetize the v
Slide 36: Thank You
Thank You Leclanché is on a clear path to deliver profitable growth. www.leclanche.com Slide 36
Slide 37: Proven, Proprietary & Vertically Integrated Battery Systems
Proven, Proprietary & Vertically Integrated Battery Systems Leclanché Battery Technology – Main Attributes Energy Density (Wh/kg) Charging Time Cycle Life Safety $$$ Total Cost of Ownership Typical Application Energy Density Cycle Life Charging Time High Power LTO 75 Wh/kg 20,000 10 mins Introduced
Slide 38: Hydrogen fuel cells complementary with Leclanché battery systems
Proven, Proprietary & Vertically Integrated Battery Systems Hydrogen fuel cells are an ideal and complimentary technology with Leclanché battery systems Leclanché is already actively working on multiple hybrid fuel cell projects Marine Rail Truck Hyseas III, Scotland Canadian Pacific Railways, Canad
Slide 39: Building Caribbean's largest Green Power Plant in St. Kitts
Building Caribbean's largest Green Power Plant: Solar+Storage Microgrid project in St. Kitts Experience to quickly conduct network and grid studies for a variety of applications Rich set controls and monitoring functionalities in Energy Management Software (EMS) Know-how and simulation tools to adeq
Slide 40: St Kitts – the largest Solar + Storage project in the Caribbean
St Kitts – the largest Solar + Storage project in the Caribbean St Kitts prime minister Timothy Harris and Leclanché Bryan Urban at the groundbreaking December 15, 2020 ➢ Solar PV 30 MW peak / 45 MWh ➢ 30% of the Island’s baseload ➢ USD 70 million capitalization / 20-year PPA © Leclanché SA 2020 - S
Slide 41: Agenda
Business Operations Update Going Forward: 2021 & beyond 2020 Financial Summary Slide 41 AGENDA
Slide 42: 2020 Financial Summary
2020 Financial Summary Continued strong customer wins Continued investment support from the majority shareholder Company’s strategy in eTransport fully validated For further details, please see the Annual Report 2020 on Company’s website. Slide 42 Strong growth momentum
Slide 43: 2020 Financial Results
2020 Financial Results ► Consolidated total income for the financial year 2020 was CHF 23.9 million, up 46% from CHF 16.3 million in 2019 ► Net loss, although lower than in 2019, remains high and will remain so until the Company reaches the scale required to become profitable again ► Record producti
Slide 44: 2020 Financial Results
2020 Financial Results P & L (in KCHF) 2020 2019 2020 revenue up 46% from CHF 16.3 million in 2019 Total income 23,854 16,314 Raw materials and consumables used -36,100 -31,783 Personnel costs -32,174 -26,579 2020 EBITDA loss was Other operating expenses -16,542 -16,256 CHF (61.0) million compared N
Slide 45: 2020 Financial Results: Balance Sheet
2020 Financial Results 31 December 2020 Balance Sheet (in kCHF) 31/12/2020 31/12/2019 ASSETS Non-current assets 41,734 32,725 Current assets 31,501 40,365 TOTAL ASSETS 73,234 73,090 EQUITY AND LIABILITIES Share capital 26,007 15,382 Reserve 46,359 3,291 Accumulated losses -93,884 -31,398 TOTAL EQUIT
Slide 46: Funding + Balance Sheet Restructuring Update
2020 Financial Results Funding + Balance Sheet Restructuring Update ► Majority shareholder has undertaken to continue support the Company in the following ways: • Conversion of debt into equity of CHF 33.8m in March 2021 • Additional conversion of debt into equity of CHF 29.7m in September 2021 • In
Slide 47: Funding + Balance Sheet Restructuring Update (Cont'd)
2020 Financial Results Funding + Balance Sheet Restructuring Update (Cont’d) Going forward: ► Leclanché has engaged BTIG, a US-based investment bank, to raise the capital required to deploy its growth plan until 2025 ► This fundraising will dilute our current majority shareholder who has agreed in p
Slide 48: 2020 Financial Results
2020 Financial Results ► Despite adverse financial conditions, aggravated by the impact of the pandemic, we continued to lay the foundations for a leading company in the field of energy storage ► Solid and sustainable development of the e-Transport business with a strong customer endorsement, confir
Slide 49: Disclaimer
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,
Slide 50: Leclanché Energy Storage Solutions
Lecianché Energy Storage Solutions : “ple Ze a Oye AiFe =| foe tr 7 oul me BS CTI} HEnEED HERE STATIONARY e-TRANSPORT SPECIALTY BATTERY SOLUTIONS SOLUTIONS SYSTEMS