Leclanché Poised For Significant Growth 2018
- Near tenfold increase in MWh delivered over 5 MWh in 2015;
- Order backlog target for the year 2017 increased to 85 MWh;
- Signed a breakthrough investment partnership with independent owner & operator of energy storage assets to develop and finance projects globally;
- Four new major institutional investors participated in the successful completion of CHF 11.1 million first-round of the capital raise;
- Completed organizational transformation into a vertically integrated energy storage system (ESS) solutions provider;
- Full 2016 yearly revenues forecasted to grow by 55% above 2015;
- EBITDA breakeven in 2018 or sooner.
The Company has delivered significant growth in the first half of the year:
- Growth in revenue, 65% year-over-year.
- Growth in order-intake with an unprecedented 75 MWh order backlog for delivery from Q4 2016 through 1H 2017.
- A 30-fold increase in confirmed projects with the Company securing 145 MWh of Energy Storage Systems (ESS) business, comprising of 75 MWh of confirmed projects and a further qualified pipeline of 70 MWh projects.
- Current portfolio of projects sets the foundation for the Company's long-term growth in different market segments, and diversified geographies as exemplified by the creation of project teams in USA and soon India.
Growth Figures in Context
Full year 2016 revenues will be approximately CHF 28 million, which is an increase of 55% over 2015. The difference between this and the 100% planned uplift under the Growth Plan is largely attributable to (i) a delay in financial closing of the IESO Canadian Project implying a delay in shipping of goods and (ii) a fire at the Company's cell manufacturing facility in Germany.
"The delay in financial closing of our Canadian IESO project was unfortunate, but we have lost no business and this revenue will be recognized in H1 2017," Srivastava explained. "We are positioned at an inflection point to execute on our growth, and to manage a broader and more stable project pipeline from a position of financial strength rather than being reliant on individual projects."
Leclanché is on track to achieve EBITDA breakeven in 2018 or sooner, and confirm as communicated during the AGM held on 4 May 2016 that the breakeven-volume is approximately 100 MWh of delivery and commissioning on an annualized basis.
"We are very pleased to report that the Company has achieved a major milestone in that we now have working reference projects in all of our addressable markets. This has been achieved within 18-months of the launch of the Growth Plan, and can be used to demonstrate our ability to execute on time and under budget," Srivastava declared.
Utility-scale generation and micro grid applications - forecast to grow 48% annually to 4.2 GWh1.
- In January 2016, Leclanché announced securing one of the largest grid ancillary services projects in the world. The IESO project, a 120 MW / 53 MWh Energy Storage Solution, is under construction. The Company is on track to commission the first site by Q4 2016
- In June 2016, Leclanché was selected in the USA, as the turnkey EPC contractor for a 20 MW / 10 MWh project, with an option to add an additional 20 MW / 10 MWh project. The project should be announced in the course of the month.
- The Company has submitted bids around the world for more than 100 MWh worth of additional projects.
Commercial & industrial battery systems "“ forecast to grow 48% annually to 11.3 GWh1
- The Specialized Battery Systems business, core of Leclanché's commercial & industrial business, won significant contracts in this period.
a) 2 major projects won to supply Battery Pack for Automated Guided Vehicles (AGVs) used in respective warehouses of two Global Multi-National companies.
b) 2 big tenders of CHF 2 million and CHF 3 million with ArmaSuisse on the development of Ni-Mh batteries for radio telecommunication systems.
c) A 5-year contract has been signed with ECA, a submarine and terrestrial drone manufacturer, for â‚¬400K annually.
eTransport (including buses, ferries, forklifts, trains and industrial material handling) "“ forecast to grow 37% annually to 6 GWh1.
- In May 2016, Leclanché announced the launch of BB Green the "the world's fastest 100% electric commuter vessel". Leclanché supplied a 200 kWh LTO energy storage system enabling it to operate at high speed for over 30 minutes with a 14 nautical mile (26 km) range. At each stop, it benefits from ultra-fast charging for 15-20 minutes.
- Leclanché LTO cells-based module is undergoing quality certification testing in Beijing, China. Upon successful testing, it will open access to the electric bus market in China.
Jim Atack, chairman added: "The board of directors wish to thank Anil Srivastava, the CEO, and his team for the excellent results in the first half of the year. The Company is on course to deliver sustained growth and aims to achieve EBITDA breakeven in 2018 or sooner. The Company is increasingly recognized as the preferred provider of industrial-scale energy storage systems for the European and North American markets."
"We sincerely thank our shareholders, suppliers and employees for their support, trust and dedication. I am excited about the solid foundation on which our growth is built," Anil Srivastava concluded.