SFC Energy AG: Preliminary 2010 figures in line with expectation - very strong fourth quarter

SFC Energy AG / Key word(s): Preliminary Results

26.01.2011 / 07:44



- Sales of approx. 13.3 million EUR: growth of 14% over 2009

- Gross margin increased to approx. 30% (2009: 27.3%)

- Growth in industry and defense markets demonstrates success as a system supplier

- Very strong Q4 creates platform for continued sustainable growth in 2011

Brunnthal/Munch, Germany, January 26, 2011 - SFC Energy AG announces preliminary unaudited figures for the 2010 fiscal year. The Group achieved total sales of approx. 13.3 million EUR (2009: 11.7 million EUR) - an increase of 14%. This sales growth was mainly driven by positive developments in the industry and defense markets. Whilst sales to the leisure sector stabilized at a little above 2009 levels.

Preliminary gross profit increased from 3.2 million EUR in 2009 to approx. 4.0 million EUR in 2010, improving the gross margin from 27.3% in 2009 to approx. 30%. EBIT 2010 was approx. minus 4.5 million EUR which was similar to 2009 due to increased investment in sales and marketing, most notably in the US, and the new production and R&D facilities in Brunnthal, Munich. The preliminary result after tax was minus 4.1 million EUR (2009: minus 3.8 million EUR).

Performance was especially positive in the fourth quarter of 2010: SFC generated sales of approx. 4.5 million EUR (Q4/09: 3.2 million EUR) and EBIT was approx. minus 0.4 million EUR (Q4/09: minus 1.2 million EUR). Preliminary EBITDA in the fourth quarter 2010 amounted to minus 0.1 million EUR (Q4/09: minus 1.0 million EUR).

In 2010, the total number of fuel cell systems sold declined to 3,900 (2009: 4,272), largely due to a reduction of the stocklevels at dealers in the leisure market. Other than growth in the industry and defense markets further improvement in product and price mix drove the overall growth in revenue. Incoming orders in 2010 amounted to 13.1 million EUR. The order backlog at December 31, 2010 was 3.2 million EUR (December 31, 2009: 3.4 million EUR).

Sales increases in the industry and defense segments - especially the order received from the German Federal Army in the third quarter - have validated SFC's strategy of supplying a complete turnkey power solution to the customer. The German Army ordered SFC system solutions consisting of the portable JENNY fuel cell, the SFC Power Manager, a hybrid battery, a solar panel as well as relevant accessories. SFC has thus moved from a development partner to a product/system supplier. For the first time the fuel cell has been established as a key component in the equipment of an active defense organization.

For 2011 sales growth is expected to be similar to that achieved in 2010 with the defense and industry/mobility markets providing most of the improvement. In the leisure market the Group expects to see stable sales in the leisure markets, with some growth provided by the Canadian market launch. The first quarter may again suffer from destocking in the leisure sector, but by further focussing on integrated energy solutions and on strategic partnerships in key markets, SFC expects 2011 to see improvement in EBIT and cash flow and to make significant steps towards break-even.

SFC's audited financial statements 2010 will be published on March 25, 2011.

About SFC Energy AG

SFC Energy AG (www.sfc.com) is market leader in fuel cell technologies for mobile and off-grid power applications serving the leisure, industrial and defense markets. As one of Germany's technology pioneers, SFC has won numerous innovation awards. SFC has alliances with leading companies in a wide range of industries. Unlike most other fuel cell manufacturers, who are in the research and development phase or run subsidized demonstration projects, SFC has successfully shipped more than 20,000 fully commercial products to industrial and private end users for more than five years, and has created a convenient fuel cartridge supply infrastructure. SFC is DIN ISO 9001:2000 certified. SFC is based in Brunnthal, Germany, and has a U.S. sales and technical service office in Atlanta. SFC Energy AG is listed at the Deutsche Boerse Prime Standard (WKN 756857).

SFC Investor Relations:
Barbara von Frankenberg
Head of IR and PR
SFC Energy AG
Eugen-Sänger-Ring 7
D-85649 Brunnthal
Tel. +49 89 673 592-378
Fax. +49 89 673 592-169
Email: barbara.frankenberg@sfc.com

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