SFC Energy AG — Earnings Release 2009

Oct 29, 2009

News Details

Corporate | 29 October 2009 08:30

SFC Smart Fuel Cell AG publishes nine months’ report for 2009

SFC Smart Fuel Cell AG / Quarter Results

29.10.2009

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The issuer / publisher is solely responsible for the content of this announcement.

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• Q3/09 sales at EUR2,810k - plus 24.9% from Q3/08 (EUR2,249k) - strong
  sales growth in industry and mobility markets

• 9M/09 sales within expectations at EUR8,476k, down 18.9% from 9M/08
  (EUR10,453k)

• Gross margin strongly improved: Q3/09: 32.9% vs. 3.2% in Q3/08; 9M/09:
  26.8% vs. 16.9% in 9M/08

• U.S. Army awarded expected follow-on order to SFC and DuPont in early
  Q3/09

Brunnthal, October 29, 2009 - SFC Smart Fuel Cell AG, technology and market
leader for mobile and off-grid power solutions based on fuel cells,
generated sales of EUR2,810k in Q3/09, versus EUR2,249k in Q3/08, which
corresponds to an increase of 24.9%. In the first nine months of 2009 sales
amounted to EUR8,476k, compared with EUR10,453k in the first nine months of
2008 (minus 18.9%). The main revenue decrease occurred in the defense
market, combined with continued consumer reticence in the leisure market.
But SFC, with sales down 16.1% in that market, again performed better than
the industry, which suffered a 24.1% (H1/09) drop in registrations for
recreational vehicles in Europe and 53% (H1/09) production decline in
Germany. Despite a slow down in investment decision SFC posted a remarkable
59.5% sales growth in the industry market. In the mobility market all
orders from Daimler and VW for on-board power supply for special purpose
vehicles were shipped. Thus, with EUR723k, the mobility segment supported
the sales growth in Q3.

In Q3/09, the number of A-Series fuel cells sold increased to 941 units
(Q3/08: 919 units). In the first nine months of 2009, 3,137 fuel cell
systems were shipped (9M/08: 3,391 units, minus 7.5%). A decrease in units
shipped to the leisure market was partly compensated by growth in the
industry and mobility markets. Driven by favourable pricing and product mix
changes, A-Series revenue was increased by 7.9% to EUR6,769k (9M/08:
EUR6,273).

In Q3/09, gross margin improved to 32.9% (Q3/08: 3.2%), whereas a one-off
effect in the defense segment has to be considered. Also the 9M/09 gross
margin was remarkably improved to 26.8% (9M/08: 16.9%) - despite the lower
sales volume. This proves the success of the continued product cost
reductions. In Q3/09 EBIT also improved to minus EUR893k (Q3/08: minus
EUR2,412k). EBIT margin came out at minus 31.8% (Q3/08: minus 107.2%). For
the first nine months of 2009, an EBIT improvement to minus EUR3,271k was
achieved (9M/08: minus EUR3,772k), which corresponds to an EBIT margin of
minus 38.6% (9M/08: minus 36.1%). 9M/09 net loss amounted to minus
EUR2,668k (9M/08: minus EUR2,126k). In Q3/09, net loss improved by 59.4% to
minus EUR753k (Q3/08: minus EUR1,854k).

Cash and cash equivalents amounted to EUR42,056k as of September 30, 2009
(June 30, 2009: EUR43,059k).

These results also demonstrate the first successes of the cost-saving
program which is running since this year's second quarter. In response to
the current macroeconomic risks and lack of market transparency, and
reflecting the appropriate degree of caution, the Management Board will
continue to work on the cost-saving program also in the fourth quarter.
This initiative will result in reasonable savings across the entire
organization.

In early July 2009, the U.S. Army awarded an order to DuPont and SFC for
the further development of portable fuel cells. SFC's share of the project
amounts to roughly two million U.S. dollars. With this project, SFC and
DuPont continue their long-standing, successful cooperation to develop
portable power supply solutions for the Armed Forces.

For the 2009 business year the Management Board continues to aim for growth
in the industry market. An important strategic goal is to broaden SFC's
sales base in order to make the company less dependent on the distinctive
seasonal and economic fluctuations of the leisure market. A double-digit
growth rate in the industry market as well as the successful market entry
into the new segment of special purpose vehicles confirm initial success in
implementation of this strategy. However, this growth cannot compensate for
the delays in the award of defense contracts and the fluctuations in the
leisure market yet. Despite this short fall in sales revenues, continued
improvement of our product margins and the ongoing cost-saving program
should enable an operating result (EBIT) approx. at its 2008 level.

The nine months' report of SFC Smart Fuel Cell AG is available for download
at www.sfc.com.

About SFC Smart Fuel Cell AG

SFC Smart Fuel Cell 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 shipped more than 15,000 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 Investor Relations:

Barbara von Frankenberg
Head of Investor Relations and Public Relations
SFC Smart Fuel Cell AG
Eugen-Sänger-Ring 4
D-85649 Brunnthal
Tel. +49 89 673 592-378
Fax +49 89 673 592-169
E-mail: barbara.frankenberg@sfc.com
Web: www.sfc.com

29.10.2009 Financial News transmitted by DGAP

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Language: English
Company: SFC Smart Fuel Cell AG
Eugen-Saenger-Ring 4
85649 Brunnthal
Deutschland
Phone: +49 (89) 673 592 - 100
Fax: +49 (89) 673 592 - 169
E-mail: info@sfc.com
Internet: www.sfc.com
ISIN: DE0007568578
WKN: 756857
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart

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