SFC Energy AG — Earnings Release 2009

Jul 30, 2009

News Details

Corporate | 30 July 2009 08:01

SFC Smart Fuel Cell publishes half-year report for 2009

SFC Smart Fuel Cell AG / Half Year Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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• As expected, H1/09 sales down 30.9% from H1/08 mainly driven by program
  delays in the defense market
• Slight revenue increase of 3,2% in all segments other than defense
  market
• Q2/09 sales in the A-Series segment up at EUR2,473k - plus 87.2% from
  Q2/08
• Gross margin improved to 23.8% in H1/09 versus 20.6% in H1/08
• Daimler AG ordered EFOY fuel cells for use as auxiliary power units in
  special-purpose vehicles
• U.S. Army awarded the anticipated follow-up order to SFC and DuPont
  early in Q3/09

Brunnthal, July 30, 2009 - SFC Smart Fuel Cell AG, technology and market
leader for mobile and off-grid power solutions based on fuel cells,
generated sales of EUR5,666k in the first half of 2009, versus EUR8,203k in
the first half of 2008, which corresponds to a decrease of 30.9%.
Second-quarter sales amounted to EUR2,793k, compared with EUR3,597k in
Q2/08 (minus 22.4%). The main revenue decrease occurred in the defense
market, as orders for joint development agreements were postponed again in
the second quarter. Extreme consumer reticence continues to dominate the
volume market leisure but SFC, with sales down 10.5%, performed far better
than the industry as a whole, which suffered a 24.2% drop in registrations
for recreational vehicles in Europe and 19.1% in Germany. The company
posted a 24.8% growth in the industry market despite general hesitation
towards capital expenditures on the customer side. Revenues in all segments
but the defense market increased by 3.2% in the first half of 2009 in
comparison to previous year. In the second quarter the increase reached
73.9% due to growth in industry and mobility markets.

A total of 2,182 EFOY units were sold in the first six months of 2009, a
decrease of 11.7% (H1/08: 2,472 units). Again, a decrease in the leisure
market is partly offset by growth in the industry and mobility markets.

Despite the lower sales volume, gross margin for the reporting period
climbed to 23.8% (H1/08: 20.6%) mainly due to continued product cost
reduction efforts. Gross margin for Q2/09 was at 29.3% (Q2/08: 22.9%).
Along with lower revenues, H1/09 EBIT fell to minus EUR2,378k, following
minus EUR1,360k in the first half of 2008 (minus 74.9%). Second-quarter
EBIT was at minus EUR1,203k (Q2/08: minus EUR949k). Net loss amounted to
minus EUR1,915k for the first half (H1/08: minus EUR272k) and to minus
EUR1,042k for Q2/09 (Q2/08: minus EUR419k).

Cash and cash equivalents increased to EUR43,059k as of June 30, 2009
(March 31, 2009: EUR42,470k). Strict working capital management practices,
grants for development projects and tax refunds led to positive cash flow
in the second quarter.

Early in July 2009, the U.S. Army awarded the anticipated order to DuPont
and SFC regarding further development of the portable M25 fuel cell as a
compact, lightweight and wearable power supply for soldiers. 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 energy supply solutions for the Armed Forces.

Another highlight of the second quarter was Daimler AG's decision to sign a
contract with SFC for the delivery of EFOY fuel cells. EFOY Pro 1600
systems will be installed as auxiliary power units (APU's) in Mercedes-Benz
Sprinter vans sold for professional use. As a result, there will be roughly
400 utility vehicles with an EFOY fuel cell on Germany's roads by the end
of the year.

The Management Board formulated a cost-saving program in response to the
current macroeconomic risks and lack of market transparency, reflecting the
appropriate degree of caution. Several components of this program were
already implemented in the second quarter. This initiative will result in
significant savings across the entire organization. In some departments,
reduced work hours were introduced in June, enabling the company to have
maximum flexibility in capacity utilization.

For the 2009 business year the Management Board continues to aim for growth
in the market for industrial applications. 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.
The results of the first half reflect ongoing delays in the award of
defense contracts, and an expansion of business in the leisure market
especially in the second quarter. The Management Board expects to stabilize
sales in the leisure market, but offsetting the negative trend in the
defense market seems unlikely, despite the recent major defense award. The
current cost-saving program should contribute to stabilizing the operating
result (EBIT) at its 2008 level.

The half-year report of SFC Smart Fuel Cell AG is available for download at
www.sfc.com.

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

30.07.2009 Financial News transmitted by DGAP

Language: English
Issuer: 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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