SFC Energy AG: Preliminary figures confirmed by audited consolidated financial statements - Further growth in 2011 lead by industry and defense markets


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

25.03.2011 / 07:46

- 14.1% sales growth in 2010 to EUR 13,330k, with strong fourth quarter 2010

- Gross margin increased to 30.3% (2009: 27.3%) due to growth in product sales and despite raw material cost increases

Brunnthal/Munich, Germany, March 25, 2011 - The final figures in the audited consolidated financial statements of SFC Energy AG, technology and market leader in mobile and remote power solutions based on fuel cells, have confirmed the preliminary figures released on January 26, 2011. As announced, sales of EUR 13,330k were 14.1% up on the previous year (2009: EUR 11,687k). This growth is a result of increased sales in all product categories. It reflects a slight leisure market recovery, the growing acceptance of SFC fuel cells in the industry markets, and the defense markets' rising interest in SFC's system solutions.

Significant sales increases of 49.7% in the industry market and of 76.9% in the defense markets, as well as modest growth of 5.2% in the leisure market were the core growth drivers. In the project based market of mobile auxiliary power systems (APU) no follow-up project could be realized, due to a lack of public stimulus programs.

The total number of A-series and C-series fuel cell systems sold in 2010 declined to 3,900 (2009: 4.272) units, largely due to an intentional reduction in the stock levels at dealers in the leisure market. The sales effects described above as well as a positive shift in the product and price mix towards more powerful systems and the successful positioning of the EFOY 2200 and EFOY Pro 2200 systems contributed to an A-series sales increase of 2.9% to EUR 9.628k (2009: EUR 9.355k) though. C-series sales almost tripled to EUR 1,089k (2009: EUR 388k). Power Manager sales rose from EUR 136k in 2009 to EUR 794k in the 2010 business year.

Thanks to these sales effects and additional cost improvements, gross profit in 2010 increased by 26.5% to EUR 4,042k (2009: EUR 3,194k). Accordingly, gross margin in 2010 grew to 30.3% (2009: 27.3%).

Incoming orders in 2010 amounted to EUR 13,068k (2009: EUR 13.384k). The order backlog at December 31, 2010 was EUR 3,150k (31.12.2009: EUR 3,412k).

As announced, SFC's 2010 EBIT of minus EUR 4,510k was at the previous year's level (2009: minus EUR 4,507k) due to increased investment in the establishment of the US operation, and the new production and R&D facilities in Brunnthal/Munich, Germany. The result after tax in 2010 decreased by 8.9% to minus EUR 4,123k (2009: minus EUR 3,785k). This difference compared to last year is caused almost exclusively by lower interest rates in 2010.

Cash and cash equivalents (freely available) at December 31, 2010, came to EUR 33,560k (December 31, 2009: EUR 40,544k). The increased net cash flow used in operating activities resulted mainly from lower tax refunds and higher net working capital.

At December 31, 2010, the equity ratio was at a strong 90.1%.

As of December 31, 2010, SFC Energy AG had 97 permanent employees (December 31, 2009: 91 permanent employees).

Sales increases in the industry and defense markets - especially the order received from the German Federal Army in the third quarter - have validated SFC's strategy of supplying complete turnkey power solutions to the customers. The German Army ordered SFC system solutions consisting of the portable JENNY fuel cell, the SFC Power Manager, a hybrid battery engineered to match the system, a solar panel as well as relevant accessories. With the delivery of this energy network SFC has moved from development partner to 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 organic sales growth is expected to be similar to that achieved in 2010 with the defense and industry markets providing most of the improvement. In the leisure market management expects to see stable sales in the European markets and some growth provided by the Canadian market launch. The first quarter has suffered from the planned destocking at dealers in the leisure sector but this has been offset by growth in industry and defense markets and overall the quarter will be similar to the first quarter of 2010. The growth for 2011 shall be generated by strategic partnerships as well as further focus on integrated energy solutions. Sales growth combined with further action to reduce product costs will be the basis for significant improvements in EBIT and cash flow resulting into concrete steps towards break even. Also, selective acquisitions that can accelerate the Company's progress will be considered on an opportunistic basis.

The annual report of SFC Energy AG is available for download at www.sfc.com.

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 the U.S. 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: [email protected]



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116960  25.03.2011