SFC Energy AG publishes nine-month figures - strong Q4 2014 expected

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

06.11.2014 / 08:00

SFC Energy AG - Corporate News - ISIN DE0007568578

SFC Energy AG publishes nine-month figures - strong Q4 2014 expected

SFC Energy AG / Key word(s): quarterly results

- Revenues up 81 % in the first nine months of 2014 to EUR 37.3 million (9M/2013: EUR 20.6 million)

- Underlying EBITDA in the first nine months of 2014 improved to EUR -1.3 million (9M/2013: EUR -1.9 million)

- Order book of EUR 14.6 million at end of September up around 39 % over previous year

- Outlook: Strong fourth quarter 2014 expected

Brunnthal/Munich, November 6, 2014 -SFC Energy AG (ISIN: DE0007568578), a leading international supplier of fuel cell based hybrid-power supply solutions, has continued on its growth course in the first nine months of 2014 - despite usual seasonal weakness in the third quarter. In the period from January to September 2014, the company generated revenues of EUR 37.3 million. This represents an 81 % increase in revenues over the prior year's figure of EUR 20.6 million. The revenue increase is primarily attributable to the encouraging performance in the Oil & Gas segment. The company's order backlog stood at EUR 14.6 million at the end of September, 39 % higher than the prior year and higher than the previous quarter (EUR 13.7 million), which gives management great confidence for the future.

Dr. Peter Podesser, CEO of SFC Energy AG, comments: "The high number of new orders is a direct result of our enhanced sales and marketing efforts in the Industry and Oil & Gas segments. Particularly encouraging is the fact that all three segments-Oil & Gas, Security & Industry and Consumer - increased their order backlog by a double-digit percentage."

The customary seasonal weakness of the third quarter affected all three segments this year. This phenomenon hit the Security & Industry segment particularly hard with two key projects being postponed, which will now be realized in the last quarter of the year. Third quarter revenues of EUR 11.2 million were significantly above the previous year's figure of EUR 7.0 million, driven in particular by the increasing successes in the Oil & Gas segment. In addition, the signs of increased spending and a lasting recovery in the defense sector are gaining momentum.

Overall, the encouraging order backlog at September 30 and the traditionally strong business in all market segments at year-end will provide the basis for a very strong final quarter of 2014.

An important milestone and a highlight in the third quarter was the presentation of the company's new EFOY GO! platform at all the major caravanning trade fairs throughout Europe. This "mobile power outlet," which is based on pioneering lithium battery technology, is the portable expansion of the innovative power supply solutions for end-users. Weighing only 5 kg, the light, portable power supply in a sturdy, compact box is intended for new market segments in the consumer and outdoor Market areas. In combination with an EFOY fuel cell the company sees enormous market opportunities in the area of emissions-free emergency home power supply when networks are unstable or in the wake of (natural) disasters-a market that is experiencing massive growth, particularly in the United States and Japan. The company expects new momentum from these new products as early as next year, with significant contributions to revenues beginning in 2016.

Financial Highlights

- Gross profit rose by 61.3% in the first nine months of 2014 to EUR10.8 million
(9M 2013: EUR6.7 million).

- Underlying EBITDA for the first nine months of 2014 of EUR -1.3 million was above the figure for the same period last year (9M/2013: EUR -1.9 million)

- Underlying EBIT improved in the first nine months of 2014 to EUR -2.4 million (9M/2013: EUR -3.3 million); in the third quarter of 2014 underlying EBIT stood at EUR -1.2 million (Q3/2013: EUR -1.7 million)

- At the end of the third quarter of 2014, SFC Energy had 246 permanent employees (September 30, 2013: 259)

New management board member

Since September 1, Steffen Schneider has enhanced the management of SFC Energy as new CFO. Mr. Schneider is an expert in international finance and capital markets and has assisted SFC Energy for several years as a financial advisor, being responsible among other things, for driving the acquisition projects for SFC Energy. In 2007 Mr. Schneider, in his then position as Director and Co-Head of Corporate Finance at Citigroup in Frankfurt, led the project team for the successful IPO of SFC Energy. Together with SFC's CEO, Dr. Peter Podesser, Mr. Schneider will be a key player in furthering the growth of the company's active international capital market strategy.



Dr. Peter Podesser, CEO of SFC Energy AG: "In addition to planned growth in our core markets, we will continue to tap attractive growth opportunities for new applications, with our ongoing innovation and our comprehensive product pipeline. Particularly in the field of back-up and emergency power supply, we see considerable market potential. Through the stronger weighting of the Oil & Gas business, we have succeeded in reducing SFC Energy's dependence on economic fluctuations in the Consumer segment and the high volatility in the Defense sector, thereby making it easier for us to plan for the future with greater certainty."

Based on the high order backlog and the traditional year-end business with government customers and in the Oil & Gas sector, Management maintains its expectation of a strong fourth quarter. In terms of guidance revenues for 2014 are still expected to be between EUR 55 and 60 million, but most likely toward the lower end of this range. In addition, the company expects to break even on an underlying EBITDA basis. These expectations are based on an exchange rate of 1.40 between the Canadian dollar and the euro for the sales and earnings of the Canadian operations. Current projects, particularly in the Oil & Gas and Security sector, provide solid visibility for continued rapid growth in 2015.


Key figures
in million EUR
9M/2014 9M/2013 Q3/2014 Q3/2013
Sales 37.33 20.58 11.16 7.00
Gross profit 10.83 6.72 3.16 1.97
Gross margin 29.0% 32.6% 28.3% 28.2%
EBITDA -2.14 -2.00 -1.08 -1.23
EBITDA underlying -1.26 -1.86 -0.77 -1.17
EBITDA margin underlying -3.4% -9.1% -6.9% -16.7%
EBIT -4.18 -3.59 -1.75 -1.86
EBIT underlying -2.45 -3.30 -1.15 -1.65
EBIT margin underlying -6.6% -16.0% -10.3% -23.6%
Net result -4.52 -3.60 -1.84 -1.84
Order backlog 14.56 10.49 - -


- When calculating sales revenue and earnings for Canadian operations, the Management Board assumed an exchange rate of around 1.48 between the Canadian dollar and the euro.

- Underlying EBITDA and EBIT do not include non-recurring effects in connection with the acquisition of the Oil and Gas business in 2013.


Detailed financial information

The complete nine-month report of SFC Energy AG can be downloaded from the Company's website at http://www.sfc.com/en/investors/financial-reports.

SFC Investor Relations:

SFC Energy AG
Eugen-Sänger-Ring 7
D-85649 Brunnthal
Tel. +49 89 673 592 378
Fax. +49 89 673 592 369
Email: [email protected]
Web: www.sfc.com

CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Tel. +49 89 89827227
Email: [email protected]

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