Leclanché continues growth and secures new industry projects

In total, Leclanché made a loss of CHF -4.74 million in the first half of 2010, which can mainly be attributed to the ramp-up of the company’s manufacturing activities that were continued in this period. The focus on the production of large format lithium ion cells requires continued investments in the fields of human resources, marketing and distribution, as well as research and development. The closing of Leclanché’s plant in Itzehoe had an additional one-time effect on the company’s cost base, but will contribute to a higher profitability in the future.

As of the end of June 2010, Leclanché had orders in hand of CHF 7.20 million, of which CHF 4.51 million were derived from the Business Unit Integration and CHF 2.69 million from the Business Unit Cell Production.

Projects and Partnerships: The success of Leclanché’s activities is reflected in several projects and partnerships, which have been secured in the first half of 2010. For example, Leclanché was chosen as supplier of large format lithium ion cells to the EU- funded venture „Web2Energy“, a project to establish an intelligent electricity network through the installation of communication links to power producers, grid terminals and consumers in the supply area Darmstadt. Leclanché’s high performance cells facilitate the storage of high levels of power within the electricity grid and their use for „Web2Energy“ is a prime example of the company’s potential to make grid stabilisation more resilient, efficient and economic. It is the first test application under real-life conditions in Germany. Dr. Ulrich Ehmes, Chief Executive Officer of Leclanché SA, says: „The decisive projects and partnerships, as well as Leclanché’s growth in revenue stand for the success of the company’s strategy. We expect our production of large format lithium ion cells to add to further revenue growth in the second half of 2010.“

Outlook: The prospective growth will require Leclanché to take an investment decision for a manufacturing line with a total capacity of up to 2 million cells by the end of 2010. In order to finance this further expansion of the company’s production facilities, the Board of Directors intends to raise up to CHF 80 million and to conduct a capital increase in the fourth quarter of 2010 by issuing up to 2.2 million new shares. The pre- emptive rights of the shareholders will be maintained. All new shares shall be placed at market. New shares, for which no pre-emptive rights have been exercised, will be offered to investors. The largest shareholder, EnergyGroup Holding, has indicated that it does not intend to make use of its pre-emptive rights. The new shares will be issued from the company’s existing authorised share capital, as well as by way of an ordinary capital increase. The ordinary capital increase will be presented to Leclanché’s shareholders for approval at an extraordinary General Assembly to be held on 22 October 2010. The capital increase is expected to be completed by mid November 2010. Credit Suisse has been mandated as sole bookrunner for the rights offering.

Contact
Markus Wieser CNC AG T.: +49 89 599 458 0 markus.wieser@cnc-communications.com