corporate presentation - leclanché · company confidential –2017 • micro-grids: renewable...

company confidential – 2016

Corporate PresentationSeptember 2017

2company confidential – 2016

Disclaimer

This presentation has been prepared by Leclanché S.A. (the “Company”) solely for informational purposes.

None of the Company or any of its directors, officers, partners, employees, agents, affiliates or advisers nor any other person makes any representation or warranty of any

sort as to, and no reliance should be placed on, the accuracy, completeness, fairness or reasonableness of the information or the opinions contained in this presentation or

in any other document or information made available in connection with this presentation. No person shall have any right of action against the Company or any of its

directors, officers, partners, employees, agents, affiliates or advisers or any other person in relation to the accuracy or completeness of any such information or for any

loss, however arising, from any use of this presentation or its contents or otherwise arising in connection with this presentation.

This presentation contains non-IFRS measures (including certain ratios and key performance indicators, such as MWh, or megawatt hour, which means a unit of energy

equal to 1MW of power being applied continuously for one hour, which the Company uses to illustrate its overall production as demonstrated through the electrical

energy storage capacity of its battery systems). These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of

the Company’s results as reported under IFRS.

This presentation contains statements that constitute forward-looking statements relating to the business, financial performance and results of the Company and the

industry in which the Company operates. Such forward looking statements in this presentation are for illustrative purposes only. These statements may be identified by

words such as “expectation”, “belief”, “estimate”, “plan”, “target”, “forecast”, “pipeline”, and similar expressions or the negative thereof; by the forward-looking nature of

discussions of strategy, plans or intentions; or by their context. All statements regarding the future are subject to inherent risks and uncertainties, and various factors could

cause actual future results, performance or events to differ materially from those described or implied in these statements. Such forward-looking statements are based on

numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Further,

certain forward-looking statements are based upon assumptions of future events that may not prove to be accurate, and neither the Company nor any other person

accepts any responsibility for the accuracy of the opinions expressed in this presentation or the underlying assumptions. Past performance is not an indication of future

results and should not be taken as a representation that trends or activities underlying past performance will continue in the future. The forward-looking statements in this

presentation speak only as at the date of this presentation, and the Company expressly disclaims any obligation or undertaking to release any updates or revisions to these

forward-looking statements to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any

statement is based after the date of this presentation or to update or to keep current any other information contained in this presentation or to provide any additional

information in relation to such forward-looking statements.

This presentation does not constitute, and should not be construed as, an offer to sell or issue securities or otherwise constitute an invitation, inducement, solicitation or

recommendation to any person to purchase, underwrite, subscribe for or otherwise acquire securities in the Company or any of its affiliates or constitute an inducement to

enter into investment activity in any jurisdiction.


Who we are

Market opportunity

Products, services & technology roadmap

Customers & case studies

Competitive advantage and IP

Organisation / execution platform

Financial Summary

Strategic Challenges and Risk Factors


Who we areLeclanché at-a-glance

We are experts in energy storage, with a focus on strategic growth markets

We have over 100 years of energy storage expertise with full solution capabilities including development, design, systems integration and management software for a wide array of storage and hybrid power configurations. We deliver fully-integrated solutions to address the highest growth market segments including delivery of energy storage-as-a-service and enabling despatchable renewable power

We have capabilities to deliver complete customer solutions

Our customer references across both stationary and transportation applications have been validated by industry-leading implementations and innovations in market segments ranging from utility-scale power generation/microgrids and grid services to mass eTransport (e.g. eFerry and eBus) and commercial & industrial battery systems. Our focus is providing customers with high-performance, infrastructure-grade, sustainable, safe, efficient and cost effective energy storage solutions, demonstrating the turn-key delivery of complex projects

We can integrate any battery chemistry with our software and systems

Our advanced battery management system, energy management software and cloud-based assetmanagement software enables us to optimise solutions for an array of end-customer use cases. We are system integrators and our integration business encompasses in-house and externally sourced battery chemistries as well as other energy storage technologies, such as fuel cells

We have proprietary, market-leading cell technology

Our proprietary Lithium cell technologies are protected by more than 100 patents granted or filed and provides market-leading charging speed, cycle/calendar life and thermal stability for lowest lifetime cost and world class performance

We bring quality European engineering to global markets

We have a heritage and culture of high quality design engineering and renowned Swiss precision, which feeds into efficient manufacturing and production through our global partners for growing markets worldwide. Our team includes 50 engineers (5 PhDs), with 20 in software development

We power clean, intelligent energy for the future

We are investing in our intelligent software, systems integration and power controls to deliver best-in-class storage solutions for 21st century applications


Key business highlights

Large, growing, strategic market

• c.$18bn annual market in 2020, with target segment growth rates from 37-58% through 2025*

Strong technology differentiation, IP, software and design know-how

• Strategically important IP enabling longer battery life, critical software and integration tools

• >USD150M invested in Research and Development over ten years

EBITDA breakeven in late 2018/ 1H2019, expected 4X increase in market cap by 2020

• >700MWh pipeline of awarded and expected projects, with 110MWh backlog through 2018**

• Transformative agreements in eTransport sector underway leading to >200MWh annual volume in 2019 onward

Industry leading Business Model

• Vertically integrated with strong ‘downstream’ capabilities leading greater margin

• Prudent mix of recurring annuity eTransport business and projects-based Stationary Storage Business

• Only ‘independent pure play Energy Storage Technology’ vendor of scale in Europe and North America

Proven execution track record

• Working references in all target markets

• >70MW/ 55MWh of projects under construction

• World class team with >150 years combined executive experience and proven track record

*Source: Navigant Research. **Please refer to page 34 for more information on our pipeline.


Who we are

Market opportunity





Financial Summary



The global Li-Ion energy storage market is growing rapidly, driven

by utility-scale generation and the electrification of transport

Source: Navigant Research

4.4

7.5

11.9

15.7

21.4

28.9

36.0

45.5

58.3

75.5

0

10

20

30

40

50

60

70

80

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

GWh

Global Lithium-Ion battery installed capacity by application

Buses, Trucks and MaterialsHandling Vehicles

Residential Energy Storage

Commerical & IndustrialBuildings

Microgrids

Utility-Scale

The Li-ion market for stationary and industrial mobility applications is forecast to grow 37% annually to 75.5GWh by 2025


• Micro-grids: renewable integration

• Grid stabilization and peak shifting

We have a sharpened focus on high growth end-markets 44% CAGR to $18 billion in 2020

• Commercial and industrial, including forklifts and automated guided vehicles (AGVs)

• Residential storage, solar lighting, medical, telecoms, security & defense

• Branded consumer (selected markets)

Source: Navigant Research.

• Fleets of buses, trains & trams

• Ferries and tugboats

• Cranes, mining vehicles

0.9

4.2

0.0

1.0

2.0

3.0

4.0

5.0

2016 2020

1.8

11.3

0.0

3.0

6.0

9.0

12.0

2016 2020

1.7

6.0

0.0

2.0

4.0

6.0

8.0

2016 2020

GW

h

GW

h

GW

h

Utility-scale generation & microgrids

Commercial & industrial battery systems

eTransport


Who we are

Market opportunity





Financial Summary



Applications: Utility-Scale Generation and Micro Grids

•T&D deferral

•Peaker substitution

•Arbitrage

•Frequency regulation

•Voltage & reactive power regulation

•Ramp rate control

•Black start

•Grid congestion relief

Grid services

•Diesel displacement

•Island operation

•Ramp rate control

•Hybrid generation control

Micro grid

•Independence

•Power availability

•Hybrid generation control

Off grid

•Aggregation of decentralized sources

•Peak delivery

•Load-aware power generation

•Arbitrage

•Energy trading

•Remote control

Virtual Power Plant

•Demand response

•Load shifting

•Demand charge reduction

Demand management

•Self-consumption

•Back-up / UPS

•Energy cost management

•Smart Grid integration

•Vehicle to Grid

Residential ESS


Applications: Transportation

• 12V Lithium-ion SLI

• Micro-hybrid

eMobility

• Bus

• Delivery Vehicles and Trucks

• eTaxi

• Mining

eMobility Pro

• eFerry

• Hybrid

eMarine

• Traction

• Accessory

• Backup

Rail

• w/wo storage

• Stationary

• Mobile

Charging Infrastructure

• AGV

• Fork lift truck

• Tuggers

Material handling


Our common technology stack is applicable across multiple markets

Module design

Battery management system (BMS)

Systems integration and engineering expertise

Solutions delivery, including financing & EPC*

Proprietary Lithium Titanate Oxide (LTO) cells for leading performance in long-life and

rapid-charge applications(sole manufacturer in Europe)

Proprietary G-NMC** cells for energy

intensive applications(including 3rd party

sourcing)

eTransportUtility-scale

generation & microgrids

Commercial & industrial battery systems

Asset planning & management software

*Engineering, Procurement & Construction.**Graphite anode and Nickel-Manganese-Cobalt cathode.

Third party battery cells and other energy storage technologies

Common, modular ‘building block’ technology – with

capabilities to integrate all storage technologies

Our systems integration business is cell chemistry

agnostic and encompasses other evolving energy storage technologies


Cycle life 15,000 @ 100% DoD>20,000 @ 80% DoD

4,500 @ 100% DoD8,000 @ 80% DoD

Lifetime & warranty

Up to 20 years Up to 10 years

Charge time to 90% SoC

Less than 15 minutes (4C) 1 hour (1C)

Charge acceptance

Symmetrical to discharge (max. c-rate 5 to 20)

Asymmetrical to discharge (max. c-rate 1)

Energy density

70 Wh / kg 185* Wh / kg

Temperaturerange

-20°C to +55°C 0°C to +45°C

Safety Superior ceramic cell technology Superior ceramic cell technology

Ideal use cases Power intensive, long lasting, rapid response

Energy intensive, low- or micro- cycle, bulk storage

Example applications

• Electric buses, e.g. Brugge

• Electric ferries

• Hybrid solutions for grid

• Behind-the-meter stationary

• Grid stability, e.g. IESO Ontario

We deploy our proprietary LTO and G-NMC cells yet remain flexible to

incorporate all third party technologies for selected solutions

Lithium Titanate Oxide (LTO) Lithium Graphite/NMC (G-NMC) Integrated 3rd Party Technologies

The vast majority of applications use our technology… …but we remain flexible to integrate

Examples could include:

▪ Other battery chemistries (Ni-MH, Ni-Cd, PbA, Li-ion)

▪ Hydrogen fuel cells

▪ Vanadium redox / redox flow batteries

▪ Ultracapacitors

*Current production performance. Leclanché continues to drive to higher energy density cells with a development roadmap targeting a 15% increase to >200Wh/kg in 2H 2018


Solutions for transport – mobility applications

▪

▪

▪

47 standard modules configurations

8...33 cells

Plastic frames and aluminium plate for optimal thermal performance

Compression mat and bolts

Temperature sensors

Protection foil for high insulation resistance

Current busbars allowing multiple configurations up to 8p

▪

▪

▪

▪

▪ Integrated measurement electronics


Stationary Storage Systems

Battery Module Battery System Energy System Energy Cluster

Cells

+ ControllerModule + Rack740V / DC

+ more Modules


Grid-tied Stationary Storage Systems


Europe’s largest producer of Lithium Cells: from powders to complete

energy storage solution

Ste

p 1

Electrode manufacturing

Different for each cell technology

Ste

p 2

Cell manufacturing

Set cell format, independent from cell chemistry

Ste

p 3

Module manufacturing

For set cell format, module assembly

LTO/NCA: In production since 2012 on the cell coating line in Willstätt.

Has been in production on pilot line since 2009.

G/NMC: Based on technology from Evonik Industries and used by

Daimler since 2010. Used in +12’000 E-Smarts that are on the streets since

2012. Technology transferred and being manufactured from powders in

Willstaett.

Single cell format, manufactured independently from cell chemistries. Cell production line for this A4 cell format has been operational since

Q3 2012.Rolls of electrodes are introduced at

beginning of process, so that cell assembly (stacking process) is

decoupled from electrode manufacturing.

Module designs for both stationary and mobile products. All mechanical

designs and BMS managed by Leclanché. New production lines for stationary and mobile modules being implemented in Yverdon throughout

2016.


Full Value Chain In-house R & D and Production

Lithium Titanate and G/NMC Cells

Systems R & D and Module Assembly in Leclanché SA, SwitzerlandCell R & D and Production in

Leclanché GmbH, Germany

Transport and Stationary Systems


We are a market leader in sustainable battery solutions

▪ The first global Li-Ion battery producer with a water-based cell production process

─ In contrast to the chemical solvents, which have to be subsequently recycled or burnt, which are used by our peers in conventional industrial coating

▪ We are a member of the Swiss Inobat Interest Organization for the disposal of batteries and began with the recycling of batteries as early as 60 years ago

▪ Protection of the environment is given high priority in every phase of our product life cycle:

─ saving resources by reduction of waste in manufacturing

─ separation technology in all areas of chemical processing

─ gas and water treatment through to systematic recycling and recovery of raw materials

▪ Accredited with international standards for quality management (ISO9001:2015) and environmental management (ISO14001:2015)

▪ Our high quality production, combined with the benefits that energy storage brings to integrating renewables and emission-free transportation, provides us with amongst the cleanest credentials in our commitment to sustainability


Who we are

Market opportunity





Financial Summary



We are growing our pipeline, with substantial momentum over the past 18 months

Jun-15 – World’s largest electric Ferry

Jan-15

Aug-15 – Solar street lighting, Saudi Arabia

Jan-16 – World’s largest grid ancillary services project (53MWh), Canada

Feb-16 – Hubert Angleys joins as CFO

Jul-15 – Autonomous guided vehicles (AGVs), Belgium

Our awarded and

expected projects*

total >700MWh

across 15+ project

deliveries through

2018

Jul-15 – Stephan Louis joins as CSO

Aug-15 – Jacques Boppe joins as VP Corporate Development

Jan-16

Customer traction with project wins across each of our segments

May-15 – European largest Hybrid power plan, Azores island, Portugal

Jun-16 – Stationary storage for PJM Services (the largest wholesale power market in the US), Chicago USA

Apr-16 – Bryan Urban joins as EVP North America

Dec-16 – 33MWh stationary storage project in Germany

July 17- Fast-Charging Stations Along Trans-Canada Highway


Customer case studies: utility-scale and microgrid storage applications

• Micro-grid supplying power for 4,500 inhabitants; turnkey solution for energy storage plant and distribution management integrating solar PV, wind park and diesel genset technologies

• Increase in proportion of renewable generation used from 15% to 65% of annual consumption

• 20 years performance warranty by Leclanché on its LTO batteries

• Project management and EMS by Younicos, financing provided by local grants and Leclanché’s shareholder, Recharge

Location: Graciosa, Azores Islands, Portugal

System: 3.2MWh LTO BESS

COD: Dec-2015

École polytechnique fédérale de Lausanne Ontario IESO / grid ancillary services

Graciosa energy island / micro-grid

• Fast frequency response for grid reserve / voltage control services

• 15 years performance warranty by Leclanché on its G-NMC batteries

• Partners include Deltro Energy (electrical and civil work and PCS) and Greensmith (EMS); Leclanché providing development Capital and arranging Swiss Export Credit (SERV)

Location: Ontario, Canada

System: 53MWh G-NMC BESS

Target COD: Q3-2017 (under construction)

• Turnkey BESS for ancillary services, solar PV solar integration, peak shaving, load management and fast frequency response

• 10 years performance warranty by Leclanché on its LTO batteries

• Largely co-financed by the Canton of Vaud

Location: Lausanne, Switzerland

System: 500kWh LTO BESS

COD: Sep-2015

Cremzow – primary control reserve

Location: North Germany

System: 22MW / 33MWh BESS

Target COD: Q4’17 to Q1’18

• Turnkey BESS to provide grid frequency control via the German primary control reserve (PCR) market

• 10 years performance warranty by Leclanché on its BESS

• 2-MW capacity being built by Leclanché as a first phase, on the basis of Build-Own-Operate-Transfer

• Exclusivity agreement signed with Major European utility for implementing the second phase (20MW)

• Project partner and DSO: ENERTRAG AG


Customer case studies: eTransportation applications

Location: Denmark

System: 4.2MWh G-NMC

Target COD: Jun-2017

b u seLocation: Espoo, Finland

System: 55kWh LTO

COD: Feb-2016

Location: Brugge, Belgium

System: 38kWh LTO

COD: Oct-2015

• First wirelessly charged fully electric buses to enter public operation in Belgium

• Three VanHool A308E buses equipped with an LTO battery delivered by Leclanché.

• Project partners included VanHool, De Lijn (Belgian bus operator) and Bombardier

Brugge eBus

VTT eBus

• Ranked #1 in TransDev energy consumption test, which included several European and Chinese bus designs; eBus achieved as low as 0.7 kWh/km consumption vs typical consumption of 1.1-1.3 kWh/km.

• Full electric drivetrain provided in partnership with Visedo

ÆRØ Ferry Project

• 56m x 12m public eFerry to replace one of the diesel-powered ferries on route between Denmark mainland and Ӕrø Island.

• Will be largest electric ferry in the world with planned energy savings up to 50% and major emission reductions

• Full electric drivetrain provided in partnership with Visedo

BB Green

Location: Sweden

System: 200kWh LTO

COD: Q2-2016

• Battery system and integrated BMS for demonstrator fully electric high speed commuter ferry

• LTO technology means batteries may be fully charged in as little as 10 minutes

• Battery capacity divided into two identical battery packs for redundancy

• Ferry fully constructed and awaiting deployment


Customer case studies: commercial and industrial applications

Automated guided vehicles (AGVs)

Off-grid residential storage Off-grid street lighting

• Globally renowned toy and entertainment brand chose Leclanché to replace their fleet of 27 NiCd-powered warehouse AGV’s

• Leclanché was chosen over competing solutions for:

– Lowest total cost of ownership with guaranteed 80% residual capacity after 7 years

– Greater autonomy and operational flexibility from better efficiency, ultra-fast charging and remote management software

– Low ecological footprint given favourable battery chemistry and Leclanché’s other ‘green’ credentials

• In March 2015 Leclanché delivered 200 battery modules for the project, certified to CE and UN38 safety standards

• Each module consists of 10 A4 LTO cells and is supported by a 10-year performance warranty

• Fully integrated design, specified with capacity for two full consecutive nights of autonomy, heat resistant (to over 50°C) and maintenance-free

Location: Saudi Arabia

System: 3x700Wh LTO modules

COD: Oct-2015

Location: Billund, Denmark

System: 40kWh LTO

COD: Q4-2016

Location: Island, Sri Lanka

System: 130 kWh, G-NMC

COD: Nov-2015

• Economical residential storage solution delivered for a small island in the north of Sri Lanka

• 4 battery banks, five 6.7kWh each

• 7 year warranty with design life of more than >5,000 cycles

Auto-guided oceanography submarine

Location: Belgium

System: 14.4kWh Third Party G-NMC

COD: Q4-2016

• Advanced design constraints to provide enough energy within limited physical envelope and able to resist to huge pressure and mechanical constraints (for diving depths over 300 metres)

• Design, testing and all certifications completed, production underway


Who we are

Market opportunity





Financial Summary



AES Energy Storage

RES

S&C ElectricSiemens

NEC Energy Solutions

Greensmith

LG CNSInvenergy

GE Energy Storage

ABBYounicos

NextEra Energy Resources

Leclanché

Doosan Grid Tech (1Energy Systems)E

xec

uti

on

Strategy

LEADERSFOLLOWERS CHALLENGERS CONTENDERS

The Navigant Research Leaderboard: utility-scale stationary storage – Published 3Q 2016

Source: Navigant Research

Our transformation into a leading utility-scale energy storage

systems integrator has been publicly recognised

Leclanché is competing favourably against companies many

times its size


Our innovation and cost reduction roadmap is in line with the market prices

Source: Bloomberg New Energy Finance

Utility Scale Energy Storage Costs 2015-2024 USD/kWh nameplate capacity for 1kW/ 1hWh Battery System


Our IP portfolio of patents protects our proprietary LTO technology and water-based processing methods

IP Coverage Patent family Patent granted In filing status

LTO specific 5 35 5

Manufacturing process 3 37 30

Separator technology(1) 1 - 5

System/module integration 2 - 3

11 72 43

Coverage area # patents granted # patents filed# of patent families

(1) Further separator patents are filed under our Fraunhofer license.

▪ We have built up a broad portfolio of IP to safeguard our business

▪ We continue to secure our technology with patents as an on-going part of our strategy


Who we are

Market opportunity





Financial Summary



Group organisational structure

Chief Executive OfficerAnil Srivastava

Regional functions Worldwide functions Corporate functions

Executive Committee

EU & RoW[External to be hired]

(Interim Anil Srivastava)

North AmericaBryan Urban, EVP

APAC[External to be hired](Interim Heiko Ross)

Customer Projects Delivery

Fabrizio Marzolini, EVP

Product DeliveryPierre Blanc, CTIO

Marketing & CommunicationsFlorent Gaillard

Human ResourcesNathalie-Claire Altherr

FinanceHubert Angleys, CFO

Legal[External to be hired]

Quality Health & Safety

Yann Beaufils

Innovation Board

Systems R&DStefan Louis, SVP

DistributionSofia Vichot


Who we are

Anil Srivastava, Chief Executive Officer

• Joined June 2014; former CEO of Areva Renewables

• Previously CEO of a large offshore German wind company and senior executive positions in companies such as TomTom group and Alcatel-Lucent

• Masters degree from the National Institute of Technology (IIT) in India and Executive MBA from the Wharton School of Business

Fabrizio Marzolini, Executive Vice President - Customer Projects Delivery

• Joined 1994; over two decades experience in integrating and managing battery technologies and systems for a variety of applications, with background in military-grade energy equipment

• Degree in electrical engineering and an executive MBA

Hubert Angleys, Chief Financial Officer

• Joined February 2016

• Formerly CEO and CFO of Metalor, a Swiss corporation with multi-billion dollar revenues

• Previously CFO of ALCOA Europe - Geneva and SICPA Group -Lausanne

Pierre Blanc, Chief Technology Information Officer

• Joined 2000

• Responsible for the development and manufacturing of battery cells of major brands such as Varta, Energizer, Panasonic and Enersys

• BA Moderatorship Chemistry from Trinity College Dublin

Stefan Louis, Senior Vice President – Systems Research & Development

• Joined 2015

• Previously at Trineuron, division of Emrol, acquired by Leclanché in 2015

• MSc in Electronics

Bryan Urban, Executive Vice President – North America

• Joined Board in 2013, EVP since 2016

• Over 25 years of energy development, finance and operation experience gained worked with Silverton Capital, Panda Energy International and Arthur Andersen

• BS from Indiana University and CPA

Recently awarded “Best CEO in the energy storage industry” European CEO Awards 2016


32

Reinforcing the focus and execution capabilities, new organization announcement by Q4-2017

1. Capital Lite: Product Supply Co

2. Opex-optimized organizational structure

3. Unlock the “Value” by market segment: dedicated Business Units focused on Stationary Storage Solution and eTransport

4. Strategic options under consideration for the legacy businesses (Portable, Distribution and Home storage)

Product Supply Division

• Retain ownership of Cell IP; Cell R & D and Production; Module Design

and in-house Module Assembly

• Long-term Master Supply Agreements with committed minimum per

annum volume, initially with Commercial Business Units (BU)

Stationary Storage BU

• 95 MWh Backlog

• In-house EMS and Systems

Integration capabilities

• Turnkey EPC business model,

with strategic partnerships with

‘Owner and Operators’ of ESS

assets

• Project Sales / Liquidity Events

• Secure access to >USD 100M

Project Finance Pool: build on

significant progress in Project

Finance

• Includes C & I and EV Chargers

eTransport BU

• Framework agreements

covering more than 150 MWh

of Battery Pack shipments

from 2019

• In-house BMS and Drive Train

Packaged solution and

integration

• Sales, Marketing and After

Sales Service to and through

OEMs in the automotive sector

• Structured access to Lease/

Rental Financing for Battery

Pack leasing


Who we are

Market opportunity





Financial Summary



We expect to see strong growth through 2020 driven by contracts already awarded and diversified pipeline of expected projects

Legacy Specialty Battery System Business not included

Awarded and expected projects Size (MWh)Target Delivery (MWh)

Market Pipeline Status (as of September 2017)2017 2018 2019

Cremzow, Germany 33 21 12 -Certification unit (Pilot); testing underwayMain site; exclusivity agreement signed with a major European utility; construction expected to start in Q4-2017

Stationary 1 34 - 14 0 Project awarded

IESO 3 to 6 41 - 41 - Project awarded; financing to be launched after IESO 1 and 2 is commissioned by Dec 2017

Stationary 2 80 - 20 60 Project under PPA discussion

NRCAN Trans Canada Highway 2 - 2 - Project awarded

Fastned (Netherlands and London) 6 - 6 10 Project under development

Stationary 3 20 8 12 20 Project awarded for the first phase of 8 MWh

Stationary 4 80 - 80 - RfP submitted

Stationary 5 300 - - 50 Project under development; Expression of interest submitted. Technical short-listing

Utility total 596 29 187 160

C&I 1 4 4 6 - Project awarded

C&I 2 >100 - 15 25 Project under development in Nigeria and India

Others 20 - - 20 Offers submitted in Senegal. South Africa and India. Pilot site under installation for toll plaza application in India

C&I total >124 4 21 45

eTransport 1 (AGVs) >225 - 25 50 Technical approval obtained; Test phase in Q1'18 and award by Q3'18. Multi year supply agreement

eTransport 2 (Bus, Scooter and Taxi) >750 - 30 200 Technical approval obtained; Purchase Order for Pilot phase awarded; Field trial in Q2'18 to confirm 30 MWh in 2H'18. Total framework agreement of >200 MWh from 2019 onward

eFerry (Ærø/EU Project) 4 4 - - Project awarded; under construction

eTransport 3 (Ferry) 6 - 6 24 Project under price negotiation

eTransport total >985 4 61 274

Grand total 1,705 37 269 479


Implied P & L, based on reasonable conversion of the Order pipeline

2017 2018 2019 2017 2018 2019 2017 2018 2019Utility 16 704 100 606 66 170 3 341 23 139 15 219 1 670 13 079 8 602

C&I3 2 428 11 928 24 255 243 2 982 6 064 0 1 789 3 638

eTransport 1 600 18 500 112 692 432 4 625 28 173 272 2 775 16 904

Company 20 732 131 034 203 117 4 016 30 746 49 456 1 942 17 643 29 144

Comments

2 EBITDA based on Leclanché estimate with OPEX at 25% of the revenue, variable opex of 40%3 Including EMS acquisition and engineering cost for product development

1 Average price as per Bloomberg New Energy Finance for Utility and C&I

Leclanché internal revenue estimate for eTransport

Revenue [kUSD]1 Gross Margin [kUSD] EBITDA [kUSD]2

➢ Legacy Specialty Battery System Business not included. Possible cushion upside of average

CHF8M in revenue.

➢ Implied EBITDA represented here excludes planned investment in Production Capex, upgrade of

IT Systems.

➢ eTransport becomes significant part of the business from 2019 onward.

➢ Growing C & I business, along with eTransport, underpins sustainable profitable growth.


Our growth aspirations are rather conservative

Utility-scale generation & microgrids

GWh 0.9 4.2 0.04 0.2 0.4

$m 1,200 3,700 40 190 370

Commercial and industrial systems

GWh 1.8 11.3 0.1 0.6 1.1

$m 2,300 12,600 130 630 1,300

eTransport

GWh 1.7 6.0 0.1 0.3 0.6

$m 700 1,800 20 90 180

Total GWh 4.4 21.4 0.2 1.1 2.1

Implied Leclanché revenue opportunity $m 4,300 18,100 180 910 1,810

Estimated market size Implied market share in 2020

2016 2020 ~1% ~5% ~10%

Note: Numbers have been rounded and therefore may not sum exactly to totals shown.Source: Navigant Research.


29.1%

11.0%

6.6% 5.1%

4.7%

43.5%

Golden Partner Group

Bruellan

Logistable Group

ACE & Company

Baring AM

Others and free float

We continue to benefit from consistent backing from new and existing shareholders

Shareholding structure (49m shares outstanding)

Golden Partner represents various Funds: SICAV, SA SPF, AVIA SICAV, Finexis, Bright Cap SICAV, CGI Enercap)

In addition, CHF 11m of convertible loan outstanding (jointly held by ACE & Cie and Logistable Group)

38

Funding Plan through to EBITDA positive in late 2018

Existing shareholders are providing continuous support to Company’s growth plan

• Golden Partner has invested an additional CHF 27.5M in July 2017

• Bruellan and ACE continue to back Leclanché funding needs

Launch a Rights Offering in October 2017

• Seek to raise CHF 40M

• Rights Issue 65% underwritten by major shareholders on pro rata basis

Launch a dual listing in Q2-2018

• Preferred in North America

• Final decision made by mid-October 2017

Off-balance sheet Project Finance Facility of >USD200M under negotiation


Solid order book, pipeline and agreements underpin a profitable and sustainable growth

Despite funding related constraints in 1H-2017, no major contracts have been lost

▪ Subject to timely completion of the planned funding, the outlook for 2018 is robust

▪ EBITDA breakeven in late 2018/ early 2019

Major breakthrough possible in eTransport business

▪ Framework agreements signed underpin more than 150 MWh or USD 45M revenue per year the year 2019

▪ Joint Development Agreement with Skoda Electric, a world leading Automotive Integrator

Envisage continued success in non-recourse project finance for Stationary Storage

▪ Advanced Term Sheets in place for both IESO, Canada and Marengo, USA projects covering Equity and Debt

▪ Exclusivity agreement with a leading European Utility for Cremzow project in Germany

Partnership with large Commercial and Industrial ( C & I) customers underway

▪ C & I product launch in Q4’17


Working reference projects in each of our addressable market segments

─ We have achieved this milestone within 18-months of the launch of our growth plan, with case studies across stationary, electric bus, electric ferry, plus other commercial & industrial application

Higher retained margins through a comprehensive vertically integrated energy storage system (ESS) offering

─ Our wide scope can cover late-stage project development through to system delivery, including a range of battery systems, power conversion systems and energy management software

─ Pending acquisition of Energy Management Software (EMS) will add 3.5% points to the Gross Margin in Stationary Storage Business

Structured access to project finance shall be achieved through a global partnership with a large Infrastructure Fund to systematically finance our projects around the world and reduce our capital intensity

─ US$200M Facility

─ More than 700MWh of project Pipeline, with confirmed 110MWh order book

Supply chain flexibility for growth – We have established a cost effective and flexible supply chain with capacity to deliver

record volumes of up to 50MWh of ESS in 2017, up from 5MWh in 2015, growing to >100MWh in 2017

Reinforced organization operational from Jan 2018

─ Senior Managers to convert their Bonus into Company Shares until the EBITDA breakeven

Solid execution track record underpin a profitable and sustainable growth


Who we are

Market opportunity





Financial Summary



We are actively working to mitigate key strategic challengesacross our business

Perceived challenge Mitigation effort

Sustainability of high double-digit revenue growth

• Leclanché is working to secure capital in a range of forms including corporate debt, growth equity, strategic joint ventures and off-balance sheet project financing – recognizing that access to capital is critical to support the Company’s ongoing operations and continued growth

• Leclanché has confirmed orders of ~95MWh, which represent part of a wider pipeline of awarded and expected projects which provide visibility of growth through 2017 and 2018

‘Lumpy’ project-related revenue creatingunpredictable earnings profile

• While Leclanché’s near-term order book is currently oriented toward utility-scale and microgrid projects, the Company has also won exemplar projects in eTransport, including electric buses and ferries. Following a process of certification and homologation, Leclanché’s solutions become ‘designed-in’, creating a barrier to entry and positioning the Company for multi-year contracts impacting growth in 2018 and beyond

• This will diversify the Company’s business away from stationary project-related revenue and towards 7 to 15+ year repeat ‘unit sales’ business in eTransport and selected Commercial & Industrial applications, for which the Company’s LTO technology is ideally suited

Perception of overlybroad market focus

• Leclanché’s solution architecture is modular. It has 80% common system design elements across its three end market segments – from cell module manufacturing through integrated software for power management systems and drive train / inverters. This strategy of common design enables the Company to target multiple fast-growing market segments with a competitive cost base

• Also encompassed in this strategy is the Company’s focus on developing a common charging infrastructure across all three of its end markets. This is a substantial market opportunity as the convergence between stationary and mobility businesses occurs

Competition and margin pressure

• Notwithstanding considerable competition in a highly fragmented marketplace the Company is competing favorably

• Current R&D programs in system and cell design are delivering a planned double digit cost reduction per annum, together with ongoing significant improvements in cell performance

• The Company’s cost reduction efforts, integrated solution offering and scale can drive increased margins

Risks related toEPC business

• Leclanché deploys its solutions into projects with relatively short construction periods (typically <6 months), with a high management focus on recycling capital

• Large project performance guarantees could be backed by the Swiss Export Credit Agency (SERV) and are non-recourse to Leclanché

• In addition, the Company carries separate insurance to cover standard product warranties and corporate matters

Sufficient working capital and resourcesto sustainably compete in cell manufacturing

• In-house cell manufacturing capacity is being limited to 1.3 million cells annually (+30% from current levels) with G-NMC cell production increasingly outsourced and a focus on in-house manufacturing of LTO; breakeven profitability is expected at >100MWh production

• The Company is finalizing licensing agreements for its cell technology and partnership on its upstream cell manufacturing and remains committed to integrating other upstream technologies to achieve optimal system designs for its customers


Note on risk factors

Shareholders and prospective investors should be aware of the of the following factors, any of which could have a material adverse effect on Leclanché’s business, financial condition, results of operations and prospects, and accordingly the value of Leclanché shares:

− The Company has limited liquidity and may not have sufficient capital to continue as a going concern

− Leclanché may be unable to:

• raise additional capital (debt, project finance, equity, etc)

• become profitable or achieve positive cash flow

• implement its strategic plans for growth

− The Company could be subject to liquidation if it fails to take appropriate remedial action

− Success will depend on the ability to offer more cost effective products and improve existing battery technology

− Leclanché must be able to establish and maintain the confidence of its customers, partners and suppliers, among others

− The Company may fail to develop successful products and solutions

− Leclanché is subject to the risk of uncertain global economic conditions

− Partnerships and collaborations may not be successful, including joint ventures for the China market

− Leclanché has a limited number of customers and operates in limited geographical areas

− There is arguably substantial overcapacity in the battery manufacturing sector

− The Company could be exposed to:

• warranty and guaranty claims

• product liability claims

• environmental claims

• tax risks

• intellectual property risks

• litigation risks


We operate with integrityCompany code of conduct

▪ Ethics: honest and ethical business, wherever we operate in the world

▪ Confidentiality: integrity in all dealings with potential, current and past customers, suppliers and associates, both in terms of normal commercial confidentiality

▪ Duty of care: conform with relevant law and avoid causing adverse effect on the human rights of people in the organizations we deal with, the wider environment and society at large

▪ Conflict of interest: perform duties in accordance with the best interests of Leclanché and not for private or personal advantage

▪ Relationships with customers and suppliers: avoid personal dealings with contractual counterparties of the Company that could influence or create the impression of influencing their decisions on behalf of the Company

▪ Gifts, Entertainment, and Favors: not accept gifts or preferential treatment that could influence business dealings or assessments

▪ Pricing: competitive pricing throughout with generally no arbitrary discounts

▪ Intellectual property (IP) and moral rights: retain moral rights and ownership of IP that we create and in turn respect our customers’ IP rights

▪ Quality assurance: maintained through constant ongoing review and reports with our customers

▪ Professional conduct: professionalism, integrity and objectivity in judgement to protect theinterests of our customers

▪ Equality and discrimination: decisions, actions or recommendations never influenced byissues of gender, race, creed, color, age or personal disability


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Contact information:Hubert AngleysCFOPhone: +41 24 424 65 00Email: [email protected]

www.leclanche.com

mailto:[email protected]

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