Leclanché SA: Publishes its Annual Report 2023 and Non-financial ESG Report

Leclanché SA / Key word(s): Annual Results/Sustainability
Leclanché SA: Publishes its Annual Report 2023 and Non-financial ESG Report

31-May-2024 / 22:57 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

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Ad hoc announcement pursuant to Art. 53 LR

Leclanché Publishes its Annual Report 2023 and Non-financial ESG Report

  * Audited results are in line with unaudited preliminary results published
    on April 30, 2024.

  * In 2023, Leclanché achieved a consolidated income of CHF 18.7 million,
    with customer revenue reaching CHF 17.2 million, increasing from CHF 7.8
    million in the first half of the year.

  * Net loss has decreased to CHF 70.5 million, a 18% improvement from the
    CHF 85.6 million loss reported on December 31, 2022.

  * On June 26, 2023, the Company increased its capital by converting CHF
    66.7 million of debt into equity. Principal investors have also
    committed to convert CHF 85.7 million of debt and interest (accumulated
    up to May 31, 2024), subject to shareholder approval. The Company is
    engaged in advanced discussions with third parties regarding equity
    financing.

  * The Company's balance sheet improved from CHF 90.8 million in 2022 to
    CHF 106.1 million in 2023.The Company has a strong business plan for the
    next five years backed with a growing pipeline driven by its three main
    markets: marine, railways and special road vehicles.

  * The Company published its first non-financial report illustrating its
    commitment to environmental stewardship, aligned with circular economy
    and future restrictions on PFAS. The Company has also achieved Article 9
    compliance under the European SFDR, making it eligible for investment by
    ESG-focused funds due to its adherence to stringent environmental and
    sustainability standards.

YVERDON-LES-BAINS, Switzerland, May 31, 2024 - Leclanché SA (SIX: LECN), one
of the world's leading manufacturers of industrial heavy-duty batteries,
today announces its results for the full year ending December 31, 2023 and
informs that further financial strengthening measures were undertaken.

Summary of 2023 Financials:

In 2023, Leclanché had a consolidated income of CHF 18.7 million, with
customer revenue reaching CHF 17.2 million, a significant increase from CHF
7.8 million reported in the year's first half. Despite a 4% reduction in
customer revenue compared to the previous year, growth in a challenging
market shows the Company's ability to drive performance in adverse
conditions. The operating loss of CHF (65.7) million, compared to CHF (65.8)
million in 2022, highlights Leclanché's effective cost management.

The acquisition of the remaining 40% of Leclanché (Saint Kitts) Energy
Holdings Limited and its subsequent consolidation into the Leclanché Group
contributed an additional CHF 6.4 million in financial income. It positions
the Company for future growth and delivering long-term value to its
stakeholders.

A modest revenue decline was recognised under IFRS compared to 2022. CHF 2.8
million in net deferred revenues on the Balance Sheet represent additional
invoiced amounts to customers yet to be recognised as revenue. This
showcases Leclanché's prudent financial management and lays the groundwork
for future growth.

The Company's net loss has decreased to CHF 70.5 million, marking a 18%
improvement from the CHF 85.6 million loss reported on December 31, 2022.

The Company has demonstrated financial stability with a robust balance sheet
of CHF 106.1 million as of December 31, 2023, improving from CHF 90.8
million as of December 31, 2022.

Leclanché S.A increased its capital by converting CHF 66.7 million of debt
into equity on June 26, 2023. This crucial step is vital to the Company's
efforts to enhance its financial stability. Leclanché is actively engaged in
advanced discussions with third parties regarding equity financing and has
received strong support from its leading investors, who have committed to
subordinating and subsequently converting CHF 85.3 million of debt and
interest, accumulated up to May 31, 2024, subject to shareholder approval,
to address the negative equity situation of CHF (7.0) million as of December
31, 2023, and to facilitate ongoing discussions with third parties.

Business Update:

Leclanché has made strategic investments in manufacturing, R&D, and
engineering. These efforts have expanded the Company's customer base.
Management's focus on cash flow and working capital has led to initiatives
that enhance Leclanché's financial position, such as optimising client
payments, securing growth financing, and refining cost strategies. These
efforts have yielded cost improvements across materials, components, and
processes, positioning the company for increased sales volumes and
reinforcing its financial stability.

Leclanche has successfully met the stringent requirements for investment by
funds focused on Environmental, Social, and Governance (ESG) objectives, as
stipulated by the European Sustainable Finance Disclosure Regulation (SFDR).
Achieving this classification signifies Leclanché's strong adherence to
rigorous environmental and sustainability standards. Notably, Leclanché is
among the limited number of companies worldwide that are Article 9
compliant, making it eligible for investment by these specialised ESG funds.

In 2023, Leclanché demonstrated its unwavering commitment to sustainability
by completing key strategic enhancements. These included transforming its
speciality business unit into the fully-owned subsidiary Leclanché SBS SA
and establishing Leclanché Technologies SA. This new subsidiary consolidates
all intellectual property rights and patents, facilitating the revaluation
of these assets within an IP box, effective January 1, 2024. Additionally,
Leclanché reorganised its involvement in a major solar and storage project
in St. Kitts through Leclanché St Kitts Energy Holding Ltd., becoming the
sole owner of this special purpose company. All contracts and agreements for
the St. Kitts project, the largest in the Caribbean, are finalised. This
project will combine solar and storage to meet a substantial part of the
island's energy needs sustainably.

Leclanché has also strengthened its value proposition by introducing
PFAS-Free and Niobium Oxide Cells. As Europe plans to restrict PFAS (per and
poly-fluoroalkyl substances) due to environmental concerns, many suppliers
in the battery industry will face significant challenges. However, Leclanché
is exceptionally well-prepared, having used a water-based binder process in
cell production for over 13 years. The company attracts strong interest from
industrial players, including automotive OEMs, for its innovative
water-based electrode manufacturing and PFAS-free technology. Leclanché will
supply various partners with lithium-ion cells that are entirely PFAS-free,
with the first samples scheduled for delivery in the coming weeks.
Additionally, Leclanché is in advanced discussions with major industrial
players regarding licensing agreements for this cutting-edge technology,
positioning itself as a leader in sustainable battery technology ready to
meet the evolving market demands.

Leclanché has also seen increased business development activities and
significant business wins in the marine, rail, and specialised vehicle
markets. The Stationary business has achieved market acceptance of its newly
launched product, LeBlockTM, resulting in increased demand.

On the operational side, Leclanché is expanding its production footprint by
relocating and expanding its pack assembly facilities in Germany. The
company has observed a growing number of customer and project wins, leading
to a significant increase in the order book and validating the market for
Leclanché's products and solutions.

Leclanché SA's Board is confident in the company's potential to generate
shareholder value and foster sustained growth.

Sustainability report:

Leclanché is pleased to present its first sustainability report for the year
2023. This comprehensive document not only details how Leclanché integrates
sustainability into its governance but also shares critical performance
indicators, including greenhouse gas emissions. It further elaborates on the
initiatives implemented to reduce the environmental footprint associated
with its battery technologies. This underscores Leclanché's proactive
alignment with new regulations on sustainable reporting, such as the
European Battery Regulation, the circular economy, and future restrictions
on PFAS. By integrating sustainability into its reporting framework,
Leclanché demonstrates a commitment to environmental stewardship, instilling
confidence in regulatory bodies.

Pierre Blanc, Group CEO of Leclanché said: "Despite the challenges of 2023,
our team's resilience and our unwavering commitment to innovation and
customer satisfaction have kept us on track. We remain confident in our
strategic direction, optimistic about the future, and are experiencing
strong growth in our pipelines. Our sustainable production processes and
integrated European production provide a unique market position.

We deeply appreciate our investors for their continued support and trust. In
2023, our revenues were in line with those of 2022, and we saw strong growth
in firm orders, particularly in our key E-Mobility market segments.
Leclanché SA is dedicated to growth and innovation, creating a robust
foundation for future opportunities".

For more information, write to info@leclanche.com or visit www.leclanche.com.

Full financials as well as sustainability report can be accessed on
https://www.leclanche.com/financial-reports/.

About Leclanché

Leclanché is a world leading provider of low-carbon footprint energy storage
solutions based on lithium-ion cell technology. Established in 1909 in
Yverdon-les-Bains, Switzerland, Leclanché's history and heritage is rooted
in battery and energy storage innovation. The company's Swiss culture for
precision and quality, together with its production facilities in Germany,
make Leclanché the partner of choice for companies seeking the very best in
battery performance and who are pioneering positive changes in how energy is
produced, distributed and consumed around the world. Leclanché is organised
into three business units: energy storage solutions, e-Mobility solutions
and specialty battery systems. The company currently employs over 350 people
with representative offices in eight countries around the world. Leclanché
is listed on the Swiss Stock Exchange (SIX: LECN). SIX Swiss Exchange :
ticker symbol LECN | ISIN CH 011 030 311 9

Disclaimer

This press release contains certain forward-looking statements relating to
Leclanché's business, which can be identified by terminology such as
"strategic", "proposes", "to introduce", "will", "planned", "expected",
"commitment", "expects", "set", "preparing", "plans", "estimates", "aims",
"would", "potential", "awaiting", "estimated", "proposal", or similar
expressions, or by expressed or implied discussions regarding the ramp up of
Leclanché's production capacity, potential applications for existing
products, or regarding potential future revenues from any such products, or
potential future sales or earnings of Leclanché or any of its business
units. You should not place undue reliance on these statements. Such
forward-looking statements reflect the current views of Leclanché regarding
future events, and involve known and unknown risks, uncertainties and other
factors that may cause actual results to be materially different from any
future results, performance or achievements expressed or implied by such
statements. There can be no guarantee that Leclanché's products will achieve
any particular revenue levels. Nor can there be any guarantee that
Leclanché, or any of the business units, will achieve any particular
financial results.

Contacts

Media contacts:

   Switzerland / Europe: Thierry Meyer T:    Germany: Christoph Miller T:
   +41 (0) 79785 35 81 E-mail:               +49 (0) 711 947 670 E-mail:
   (1)tme@dynamicsgroup.ch  1.               (1)leclanche@sympra.de  1.
   mailto:tme@dynamicsgoup.ch                mailto:leclanche@sympra.de
     Investor contacts: Pasquale Foglia /
     Pierre Blanc T: +41 (0) 24 424 65 00
                                  E-mail:
    (1)invest.leclanche@leclanche.com  1.
    mailto:invest.leclanche@leclanche.com

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End of Inside Information

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   Language:       English
   Company:        Leclanché SA
                   Av. des Sports 42
                   1400 Yverdon-les-Bains
                   Switzerland
   Phone:          +41 (24) 424 65-00
   Fax:            +41 (24) 424 65-20
   E-mail:         investors@leclanche.com
   Internet:       www.leclanche.com
   ISIN:           CH0110303119, CH0016271550
   Valor:          A1CUUB, 812950
   Listed:         SIX Swiss Exchange
   EQS News ID:    1915841

End of Announcement EQS News Service
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1915841 31-May-2024 CET/CEST