Half-year results 2015

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1 Half-year results 2015

2 Agenda 1 Q2 sales & H1 results highlights 2 Detailed financial review 3 Outlook 2

3 Q2 sales and H1 results 1 highlights 3

4 Introduction and H highlights First impressions from the Chairman of the Management Board. Continuous positive momentum in civil electronics and transportation markets. Industrial standby orders and sales impacted by oil project cancellations and postponements. Lower Li-ion sales as expected due to telecom and ESS. Strong increase in Group profitability. Good control of capital employed. 4

5 Q2 sales growth impacted by challenging comparables in telecom and low ESS business Growth % Growth % m Q At current exchange rates At constant exchange rates H At current exchange rates At constant exchange rates IBG (0.9)% (12.2)% % (3.9)% SBG % 9.7% % 7.5% TOTAL % (4.3)% % 0.4% Strong order intake of lithium-ion telecom batteries. Renewal of two LTAs with leading space OEMs. 5

6 Strong increase in profitability despite weak Li-ion activity m H H restated (2) YoY growth Sales (1) % EBITDA (3) % EBITDA margin in % (3) 15.5% 14.9% 60 b.p Operating profit % Net income % EPS ( per share) % (1) At actual exchange rates, except sales growth which is at constant exchange rates. (2) Restated to comply with IFRIC 21 accounting interpretation on the timing of recognition of levies. (3) EBITDA / EBITDA margin before change in accounting for levies is 58.9m and 15.9% respectively of sales in H and 50.7m and 15.4% of sales in H

7 Industrial Battery Group Contrasting sales performance per market 55% 122.7m (1) of IBG sales 91.7m (1) 42% of IBG sales Stationary Sales growth Actual rates (2.2)% Constant rates (13.8)% 220.9m (3.9)% Transportation Sales growth Actual rates 24.1% Constant rates 13.1% Industrial standby Sales growth and order intake impacted by challenging oil market Telecom Excellent sales of nickel batteries in the US Li-ion batteries: low sales in H1 but key growth driver for H2 ESS Weak sales and order intake in a both soft and competitive market Aviation Growth driven by sales of Li-ion batteries Rail Continued growth above global market trend Vehicles Strong sales growth: development contracts Formula 1 (1) Excluding 6.5m of sales of battery components (3% of IBG sales). 7

8 Specialty Battery Group Strong sales growth driven by civil electronics and space markets 108.3m 72% of SBG sales 41.6m 28% of SBG sales Civil Electronics Space and Defence Sales growth Actual rates 26.7% Constant rates 13.4% 149.9m +7.5% Sales growth Actual rates 6.4% Constant rates (5.1)% Metering activities in Europe and China are main growth drivers Most civil electronics niche markets growing Weak oil drilling market Defence Traditional defence markets stabilising Lower Li-ion sales for new programmes Space Large deliveries of GEO satellite batteries in H1 8

9 Increased EBITDA in both divisions Industrial Battery Group Specialty Battery Group EBITDA EBITDA margin 22.7m 11.0% 23.7m 10.7% EBITDA EBITDA margin 29.8m 23.9% 38.3m 25.5% +4.3% +28.4% Positive FX impact offset by losses from Li-ion production units Negative impact of nickel costs Stronger profitability coming equally from increased volumes and positive FX impact 9

10 2 Detailed financial review 10

11 Profitability driven by favourable exchange rates 6 months ended 30 June m restated (1) Sales Cost of Sales (260.0) (237.2) Gross profit Gross profit margin % 29.9% 28.1% Operating costs (2) (72.6) (63.0) EBIT Depreciation and amortization EBITDA (3) EBITDA margin % (3) 15.5% 14.9% (1) Restated to comply with IFRIC 21 accounting interpretation on the timing of recognition of levies. (2) Sales, marketing, G&A, R&D costs: 50% of YoY increase in operating costs due to impact of foreign exchange. (3) EBITDA / EBITDA margin before change in accounting for levies: 58.9m and 15.9% of sales in H and 50.7m and 15.4% of sales in H

12 Net income growth of 45% m months ended 30 June 2014 restated (1) EBIT Other operating and restructuring income / (expense) 0.1 (0.5) Operating profit Net finance costs (1.8) (2.8) Share of profit / (loss) of associates (ASB group) Income tax expense (7.2) (6.2) Net income EPS (1) Restated to comply with IFRIC 21 accounting interpretation on the timing of recognition of levies. 12

13 Good control of capital employed and robust cash flow 6 months ended June 30 m Net cash provided by operating activities before changes in working capital Changes in working capital (8.2) (11.2) Purchase of intangible assets (2.0) (3.1) Purchase of property, plant and equipment (14.3) (14.3) Other Net cash used in investing activities (16.0) (17.2) Net proceeds from capital increases Dividend paid (10.0) (9.8) Others Net cash generated from/(used in) financing activities 6.0 (7.4) Net increase/(decrease) in cash Cash at start of period Effect of foreign exchange rates changes 7.2 (0.1) Cash at end of period Free cash flow

14 3 Outlook 14

15 2015 targets confirmed Based on first-half achievements and current backlog, Saft confirms its 2015 targets for: Sales growth 5% at constant exchange rates EBITDA margin 15.8%. On-going strategic and operational review: Growth and differentiation Excellence in execution Financial impact Update in November 15

16 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. 16

Saft Groupe SA Full year results 2014

Saft Groupe SA Full year results 2014 Paris, February 18 th, 2015 Disclaimer This document contains certain forward-looking statements relating to the business, financial performance and results of the