Saft Groupe SA. Full year results Paris, February 18 th, 2014

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1 Saft Groupe SA Full year results 2013 Paris, February 18 th, 2014

2 2 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.

3 3 Agenda 1. Group performance Divisional performance 3. Financial review 4. Market potential for Li-ion batteries 5. Outlook

4 1. Group performance

5 Highlights Full year results in line with targets 624,2m sales, up 7.5% Strong recovery in sales and profitability in H2 Li-ion sales confirm growth trend Sales increased by > 30% Significant success in Indian telecom market Increased visibility on future sales Strong commercial successes in nickel batteries during the year

6 6 Summary 2013 performance m (1) YoY growth Sales (2) % EBITDA (9.6)% Net income from continuing operations Net profit/(loss) from discontinued operations (0.7)% (5.2) (7.3) 28.2% Net Income % EPS ( per share) % (1) Restated to apply revised IAS 19 accounting standard on pensions and excluding 5.2m non recurring sales to JCI. (2) At current exchange rates except for YoY sales growth which is at constant exchange rates.

7 H2 2013: return to strong sales growth m H Growth (1) H Growth (1) FY sales 2013 Growth (1) IBG % % % SBG (9.1)% (2.4)% (5.8)% Total (1.0)% % % Solid Q4 2013, sales up 12.3% 28.1% growth in industrial battery sales SBG sales down 7.3% (1) All sales growth at constant exchange rates. 7

8 8 Strong sales growth in Asia % 2% 14% 18% 14% 33% 32% 20% 33% 32% Europe North America Asia/Oceania Middle East and Africa South America

9 9 Growing Li-ion and nickel sales Sales 14 % +31% 18% 18% -7,7% 34% 30% 4% 4% 4% +7% 48% 48% Lithium-ion Primary lithium Others Nickel

10 More diversified lithium-ion sales Total sales: 112m (1) Sales growth 2013: > 30% +1% 6% 13% 9% 16% 15% +8% +232% 39% 60% -8% 42% Civil Electronics Transportation Stationary Space and Defence (1) At actual exchange rates. 10

11 11 EBITDA : Strong recovery in profitability in H2 Industrial Battery Group Specialty Battery Group 70.4m 33.7m 38.8m 59.1m Strong positive impact from H2 volumes Improved performance of Li-ion operations Higher development costs to P&L Profitability in line with historical trend despite lower sales FX impacted profitability

12 12 2. Divisional performance

13 13 Industrial Battery Group Strong market share gains for industrial batteries % / 17.7% (2) Stationary (1) 220.6m Growth driver was the telecom market Nickel batteries in US Evolion Li-ion batteries in India Follow-on order received for Q1/Q deliveries Industrial standby sales growth in line with market ESS sales down due to contract delays > 10m contracts booked during last three months 60% 367.9M % 37% % / 8.9% (2) Transportation (1) 137.3m Excellent growth in the rail market in Asia and North America Strong H2 sales growth in the aviation market in the US Strong OEM and US military sales (1) Excluding 9.9m of sales of electrodes to Arts Energy (2) Growth by segment: Constant exchange rates / Actual rates

14 14 Specialty Battery Group A challenging year with lower volumes + 0.3% / (1.7)% (1) Civil Electronics 158.5m Sales growth in H2 Chinese metering demand remains high Weakness in 2013 was in North America Expanded client base New applications - Ecall 63% 256.3M -5,8% - 5.8% 37% (14.3)% / (15.8)% (1) Space and Defence 97.9m Reduced demand for radio and torpedo batteries Continuing to win projects for Li-ion systems Strong space sales in H2 with project pipeline remaining solid (1) Growth by segment: Constant exchange rates / Actual rates

15 3. Detailed financial review 15

16 EBITDA in line with guidance m 2013 Reported 2012 Restated (1) Sales Gross profit Operating costs (116.3) (105.6) EBIT Depreciation/amortisation EBITDA (1) Restated to apply revised IAS 19 accounting standard on pensions and excluding 5.2m non recurring sales to JCI. 16

17 H1 to H2 2013 EBITDA bridge 70,0 60,0 50,0 8.9 4.4 6.7 (0.

0 30,0 20,0 10,0 - H1 2013 IBG nickel volumes & mix SBG

17 17 H1 to H EBITDA bridge 70,0 60,0 50, (0.6) (0.3) (1.2) (5.4) , ,0 20,0 10,0 - H IBG nickel volumes & mix SBG volumes & mix Li-ion Sales operations & marketing R&D costs FX impacts Other costs H2 2013

18 Increase in net income and EPS m Restated (1) EBIT Other operating income / (expense) 6.6 (0.5) Operating profit Net finance costs (10.5) (12.6) Share of profit / (loss) of associates (2) Income tax expense from continuing operations (10.4) (15.5) Net profit/(loss) from continuing operations Net profit/(loss) from discontinued operations (5.2) (7.3) Net income EPS ( per share) Saft to propose a 4% increase in dividend at 0.78 per share. (1) Restated to apply revised IAS 19 accounting standard on pensions and excluding 5.2m non recurring sales to JCI. (2) Saft s 50% share in ASB net income. 18

19 Solid operational cash flow m Net cash provided by operating activities Net cash used in investing activities (56.9) (53.5) Net cash generated by/(used in) financing activities 1.8 (152.3) Net cash generated by/(used in) continuing operations Net cash generated by/(used in) by discontinued operations (0.9) (150.3) (8.4) 0.0 Net increase/ (decrease) in cash (9.3) (150.3) Cash at end of period Free cash flow 16.6 (1) 11.9 (1) Before capital transactions, i.e. acquisition for 8.5m of Nersac Li-ion production unit. 19

20 20 A strong financial situation m Gross financial debt Net financial debt Net debt to EBITDA ratio 1.18 (1) 0.98 (1) (1) Calculated as per contractual terms Two years extension of bank debt maturity agreed. Credit margin on bank debt reduced by 15 bps.

21 21 4. Market potential for Li-ion batteries Industrial market Renewable energy storage Industrial and commercial vehicles

GWh Li-ion, automotive, GWh Li-ion, consumer, GWh 35 9 15 40 15 30

22 22 Vision of the industrial market potential Total LIB ESS Market (1) Global Li-ion battery market, GWh Li-ion, industrial / others, GWh Li-ion, automotive, GWh Li-ion, consumer, GWh Source : Avicenne (1) Excludes vehicles/consumer

3 6 2015 2020 2025 Source: Roland Berger, Avicenne,

23 23 Composite view on Li-ion potential in Renewable Energy Storage Market ESS - Li-ion battery market, GWh Source: Roland Berger, Avicenne, Boston Consulting Group Short term 75% market in North America

24 24 Legislative and political support US FERC 755 ruling on frequency regulation California Storage Law AB 2514 :1.3GW by 2020 Europe Focus on Energy Storage in EU position papers 200m for ESS - Horizon 2020 Germany Italy Japan Korea 50m /yr subsidies for PV self consumption storage 2014/15 75MW Terna projects US$ 210m subsidy program launched Overall storage plan targets 2 GW by 2020 US$ 280m project funding

Industrial and commercial EV and HEV vehicle market (1) (by volume) 1 765K 2% 22% 740K 1 000K 10% 24% 17% 33% 76% 66% 51% 2012 2015 2020 Source

25 Industrial and commercial EV and HEV vehicle market (1) (by volume) 1 765K 2% 22% 740K 1 000K 10% 24% 17% 33% 76% 66% 51% Source Frost&Sullivan Roland Berger Id Tech Ex Forklift trucks Off-road industrial vehicles incl. GSE Buses & trucks (1) Excludes passenger cars and car derived vans. 25

26 5. Outlook 26

27 27 Strong growth trend to continue in m FY 2013 Guidance (1) Sales EBITDA Growth expected in both divisions in 2014 H1 sales growth will be stronger than H2 Li-ion to represent >20% of sales in 2014 (1) Guidance at constant exchange rates.

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