Saft Groupe SA reports fourth quarter and full year 2006 sales

Transcription

1 FOR IMMEDIATE RELEASE Saft Groupe SA reports fourth quarter and full year 2006 sales Paris, 15 th February Saft, leader in the design, development and manufacture of high-end batteries for industry and defence, announces its sales for the fourth quarter and the year ended 31 December Sales highlights Q sales up 6.6%, compared with Q4 2005* Q year-on-year* growth by product line: o SBG +0.3% (+9.0% excluding US Army) o IBG +8.6% o RBS +23.7% Full year 2006 sales of 560.2m: o Above original guidance of 540m - 550m and revised guidance of 550m +1% o Down only 7.1m (-1.3%) compared with full year 2005*, despite c. 35m fall in sales to the US Army (*) All comparisons with 2005 are at constant perimeter and constant exchange rates John Searle, Chairman of the Management Board, commented: Saft s Q4 sales were very good and I am pleased to announce year-on-year sales growth of 6.6% in Q after several quarters of decline related to reduced demand from the US Army and strategic decisions taken in our RBS division to exit low margin telecom and consumer markets. Most of our markets remained strong during the quarter enabling Saft to exceed its revised sales guidance, despite an unfavourable US$/ exchange rate. These stronger Q4 sales, coupled with tight cost control, have helped the group offset the consequences of the nickel price exceeding $30,000 per tonne in the quarter. I therefore expect to announce that Saft has met its EBIDTA 1 and EBIT 2 guidance for 2006, when our full year results are released on 15 th March. 1 EBIDTA defined as net income from operations, before depreciation, amortisation, restructuring costs and other income and expenses. 2 EBIT defined as net income from operations, before restructuring costs and other operating income and expenses.

2 TURNOVER ( millions, under IFRS) Fourth quarter At actual exchange rates Period Q Q Growth / decline, Perimeter As reported As reported as reported (i.e., including AMCO- (i.e., including Saft India Ltd and ASB/MSB) excluding ASB/MSB) SBG (8.0%) IBG % RBS % Total % At constant exchange rates* and constant perimeter Period Q Q Growth / decline, Perimeter Excluding AMCO- Excluding ASB/MSB at constant perimeter Saft India Ltd and and at constant excluding ASB/MSB exchange rates SBG % IBG % RBS % Total % (*) The average exchange rate in Q was 1: $1.29 (compared with 1 : $1.19 in Q4 2005). Q sales of 148.2m were up 1.8% as reported and up 6.6% at constant exchange rates and constant perimeter, compared with Q

3 Year ended 31 December 2006 At actual exchange rates Period FY 2006 FY 2005 Growth / decline, Perimeter As reported As reported as reported (i.e., including AMCO- (i.e., including Saft India Ltd and ASB/MSB) excluding ASB/MSB) SBG (9.1%) IBG % RBS (3.0%) Total (2.7%) At constant exchange rates* and constant perimeter Period FY 2006 FY 2005 Growth / decline, Perimeter Excluding AMCO- Excluding ASB/MSB at constant perimeter Saft India Ltd and and at constant excluding ASB/MSB exchange rates SBG (5.3%) IBG % RBS (2.9%) Total (1.3%) (*) The average exchange rate in 2006 was 1: $1.255 (compared with 1 : $1.244 in YTD September 2005). Sales for the year ended 31 December 2006 of 560.2m were down 2.7% as reported and down 1.3% at constant exchange rates and constant perimeter, compared with As previously indicated, there have been two changes in perimeter between 2005 and 2006: 1. As announced on 15 th February 2006, Saft has acquired a controlling 51% stake in an Indian industrial NiCd battery manufacturer, AMCO-Saft India Ltd, effective from 1 January This acquired business contributed incremental revenues of 0.7m in Q4 2006, and 2.2m in full year 2006, reported within IBG. 2. There has been a change in accounting principle regarding the ASB/MSB joint venture, which is now accounted for under the equity method. This joint venture was proportionately consolidated in 2005 and contributed revenues of 3.2m in Q4 2005, and 9.6m in full year 2005, reported within SBG. Specialty Battery Group In the fourth quarter, SBG sales were down by 8.0% as reported to 65.2m, but up by 0.3% at constant exchange rates and constant perimeter, compared with Q After a year-onyear sales decline for 4 consecutive quarters due to the US Army over-stocking, this was a strong performance as the prior year comparison was challenging. This 0.2m increase at constant exchange rates and constant perimeter comprised the expected fall in sales to the US Army, offset by net growth of approximately 9% across other segments, with good performances from other Military Lithium customers and New Defence Systems.

4 For the full year 2006, SBG sales were down by 9.1% as reported to 240.5m, and by 5.3% at constant exchange rates and constant perimeter, compared with This 13.5m fall at constant exchange rates and constant perimeter comprised the previously announced reduced sales to the US Army, partly offset by net growth of approximately 10% across other segments, all of which continue to perform well. The decline in sales to the US Army in 2006 was in line with expectations, with full year sales being marginally below the expected 20m due to the decline in the US$, and a December delivery being delayed due to a supplier issue. Industrial Battery Group In the fourth quarter, IBG sales increased by 7.9% as reported to 61.6m and by 8.6% at constant exchange rates and constant perimeter, compared with Q We estimate that c. 0.5m of this sales increase was due to nickel-related price increases. Sales were particularly good in the Industrial Standby segment, including the fulfilment of a number of large contracts in the oil and gas industry. For the full year 2006, IBG sales increased by 4.8% as reported to 238.7m and by 3.9% at constant exchange rates and constant perimeter, compared with Sales in the Telecom and Industrial Standby segments were strong, offsetting a small fall in the Railways segment, which had exceptional growth in Rechargeable Battery Systems In the fourth quarter, RBS sales grew by 21.6% as reported to 21.4m and by 23.7% at constant exchange rates, compared with Q We estimate that c. 0.9m of this sales increase was due to nickel-related price surcharges. Both the Emergency Lighting and Professional Electronics segments had a strong quarter, showing double-digit growth in comparison with Q4 2005, which was exceptionally poor. In the full year 2006, RBS sales fell by 3.0% as reported to 81.0m and by 2.9% at constant exchange rates, compared with Both the Emergency Lighting and Professional Electronics segments showed modest year-on-year growth, but this was insufficient to compensate for the fall in sales in the non-strategic telecom and consumer segment. Saft will provide guidance for 2007 at the time of its 2006 earnings release on 15 th March 2007.

5 Financial calendar turnover + Q4 turnover 15 February Earnings release 15 March Q1 turnover 15 May 2007 General Assembly 6 June Q2 turnover 2007 Half year turnover 26 July Half year earnings 31 August Q3 turnover 15 November 2007

6 IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, objectives or results of operation. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Saft s plans and objectives to differ materially from those expressed or implied in the forward looking statements. About Saft Saft (Euronext: SAFT) is a world specialist in the design and manufacture of high-tech batteries for industry. Saft batteries are used in high performance applications such as industrial infrastructure and processes, transportation, space and defence. Saft is the world s leading manufacturer of nickelcadmium batteries for industrial applications and of primary lithium batteries for a wide range of end markets. The group is also the European leader for specialised advanced technologies for the defence and space industries. With approximately 3,800 employees worldwide, Saft is present in 18 countries. Its 18 manufacturing sites and extensive sales network enable the group to serve its customers worldwide. For more information, visit Saft at Press and Investor Contacts: Saft Jill LEDGER, Corporate Communications and Investor Relations Director Tel.: , jill.ledger@saftbatteries.com FINANCIAL DYNAMICS Elodie MARCHAND, Tel.: : elodie.marchand@fd.com Valéry LEPINETTE, Tél.: : valery.lepinette@fd.com