ANNUAL REPORT 2011 REGISTRATION DOCUMENT - Saft

More documents

Recommendations

Info

5 Earnings COMMENTS ON THE 2011 FINANCIAL YEAR by division 5.2 EARNINGS BY DIVISION The following table shows changes in revenue and EBITDA margin by division. Revenues (€m) 112 / SAFT - ANNUAL REPORT 2011 Financial year 2011 Financial year 2010 Change (%) Restated EBITDA (€m) EBITDA margin (%) Revenues (€m) Restated EBITDA (€m) EBITDA margin (%) IBG (1) 350.2 7.5% 53.3 15.2% 331.1 54.2 16.4% SBG 271.1 6.7% 64.4 23.8% 260.0 59.2 22.8% Other (2) - - (5.5) n.s. - (3.5) n.s TOTAL 621.3 7.1% 112.2 18.1% 591.1 109.9 18.6% Data provided at actual exchange rates, except for the change in revenue, which is at constant exchange rates. (1) EBITDA of the IBG division is restated to exclude the impact of the Li-ion production facility in Jacksonville, representing an EBITDA contribution of €(9.6) million in 2011 and €(1.5) million in 2010. (2) The “Other” cost centre includes the cost of corporate support services, i.e. primarily IT, research, corporate management, fi nance and administration. In 2011, it furthermore includes a non-recurring upfront royalty payment of €7.4 million booked as a result of the agreement to end the joint venture with Johnson Controls. This revenue is excluded from the data in the above table. Changes in consolidated revenue by market segment are shown below: 2011 2010 Change at constant exchange rates Stationary back-up power applications 168.5 140.5 22.7% Transportation (aviation and rail) 126.8 126.0 1.7% Small nickel batteries 54.9 64.6 (13.9)% TOTAL IBG 350.2 331.1 7.5% Civil activities 188.6 164.3 17.6% Defence activities 82.5 95.7 (12.0)% TOTAL SBG 271.1 260.0 6.7% 5.2.1 INDUSTRIAL BATTERY GROUP (IBG) At €350.2 million, IBG division sales increased 7.5% at constant exchange rates over the fi nancial year. At current exchange rates, sales increased 5.7% compared to the 2010 fi nancial year. This strong performance refl ects growth across all its various markets, except for the small nickel batteries market. As in 2010, this growth was mainly driven by the Stationary back-up power applications batteries market, which generated revenue of €168.6 million, an annual progression of close to 23% at constant exchange rates. The business grew in all regions, with the strongest performance being seen in Asia/ Oceania and Middle East/Africa. The industrial infrastructure back-up battery segment played a major part in this performance, in particular sales to the (1) Excluding sales to Johnson Controls-Saft. oil sector and to the electricity production, transmission and distribution sectors. As for the telecommunications networks market, the number two market for the division’s stationary applications, growth was slower, but still strong, with notably a sharp increase in the North American market. Overall, the proportion of the division’s revenue generated from stationary applications rose markedly, going from 44% of the division’s (1) sales in 2010 to 49% in 2011. After what was generally a slack 2010, transportation markets (aviation and rail) posted growth in 2011, with revenue (1) up 3.0% at constant exchange rates compared to the 2010 fi nancial year. Within this business, the aviation sector, which had been one of the fi rst to see a return to growth in Q1 2010, continued to grow by over 5% in 2011, almost in line with the growth in global traffi c.
5 COMMENTS ON THE 2011 FINANCIAL YEAR Earnings by division Following a year of contraction in 2010, the rail market was very slightly positive in 2011. Although with contrasting developments occuring across different regions, growth was primarily seen in European and Middle-Eastern markets. In 2011, transportation markets (1) accounted for 35% of the division’s revenue (1) , compared to 36% in 2010. Sales to small nickel battery markets which had enjoyed a 16.6% surge in the 2010 fi nancial year, fell back 13.9% in 2011 in what was a very competitive market. This decline in sales was strongest in North America and had a broadly similar impact on the professional electronics and emergency lighting markets. In 2011, these markets accounted for 16% of revenue at the IBG division (1) , compared to 20% in 2010. In terms of profi tability, the 2011 fi nancial year saw a 120 basis point decline in the division’s EBITDA margin, the latter being calculated, excluding the negative €9.6 million contribution from the new Li-ion facility in Jacksonville (compared to a negative €1.5 million contribution in 2010), at 15.2% of revenue in 2011 versus 16.4% in 2010. This reduction was mainly due to the gross margin being driven down by the twin impact of higher nickel purchasing costs and a broadly negative exchange rate effect. Over the past three fi nancial years, the price of nickel has risen sharply on the London Metal Exchange. The average price per ton of nickel thus rose from US$14,655 in 2009 to US$21,809 in 2010 and most recently US$22,894 in 2011, representing an increase of 56% over two fi nancial years. In line with the hedging policy adopted to protect the profi tability of a large portion of IBG division’s order book, the division’s estimated needs for the fi rst half of 2012 were already 60% hedged by the end of the 2011 fi nancial year. As far as possible, Saft will continue to apply the strategy of making forward purchases for part of the division’s requirements at a price consistent with that to be charged to customers in respect of the orders they have placed with IBG. Continuing the work undertaken in 2009, the division intensifi ed its sales and marketing efforts in renewable energy storage markets, strengthening the teams assigned to these markets. Accordingly, from a commercial standpoint and with regard to the development of new markets, the 2011 fi nancial year saw a large number of successes, and in particular: � the signing of new contracts to supply energy storage systems designed i) to manage electricity production, (1) Excluding sales to Johnson Controls-Saft. transmission and distribution networks, and ii) for community and residential energy storage applications. These successes were achieved both in the US and in Europe. Total orders for energy storage systems received in 2011 represent about 10MWh capacity; � the supply of lithium-ion battery prototypes designed to provide on-board power for the new generation of electric forklift trucks presented by the Linde and Still brands of the European market leader Kion at the intralogistics trade show in Hannover; � in the rail sector, the development of the fi rst Li-ion batteries for two leading equipment makers in this market; � the launch of the Evolion® line of lithium-ion high-energy batteries for telecommunications applications, with high demand for batteries for completion of tests by customers; � in the fi eld of mobility, the signing of a production agreement with Peugeot Scooters to supply lithium-ion batteries for the new zero-emissions scooter “e-Vivacity” that is scheduled to be launched in 2012. The IBG division’s traditional technologies and markets also saw a large number of successes, in particular in Asia in the rail sector. Thus, two major contracts were signed with the two leading Chinese manufacturers CNR and CSR, respectively for the supply of back-up batteries for the “West Island” metro line in Hong Kong (contract with CNR) and the supply of batteries for 38 railcars for Malaysia (contract with CSR). The division’s industrial investments and capitalised Research and Development expenditure totalled €56.2 million in 2011, compared to €66.2 million in 2010 and €12.5 million in 2009. The largest single investment represented a gross amount of €40.3 million (US$56.1 million), excluding a €20.4 million (US$28.4 million) subsidy, and was for the new Li-ion facility in Jacksonville, which is described below. 5.2.2 SPECIALTY BATTERY GROUP (SBG) At €271.1 million, revenue at the Specialty Battery Group division recorded a sharp 6.7% increase at constant exchange rates after growth of 4.0% in 2010, despite a decline in military markets. At current exchange rates, sales were up 4.3% year-on-year. This growth came from civil activities where revenue was up 17.6% at constant exchange rates after an 18.7% increase in 2010. In the metering and smart metering systems market, the strongest growth came from European markets and China. Other markets with strong growth in 2011 were the medical equipment market as well as the oil drilling market. SAFT - ANNUAL REPORT 2011 / 113
Page 1 and 2:
THE FUTURE COMES FROM EXPERIENCE AN
Page 3 and 4:
5 COMMENTS ON THE 2011 FINANCIAL YE
Page 5 and 6:
19 SITES WORLDWIDE 16 MANUFACTURING
Page 7 and 8:
FRANçOIS LINCk MARkETING MANAGER N
Page 9 and 10:
What vision for lithium-ion? ANNE D
Page 11 and 12:
What vision for renewable energy st
Page 13 and 14:
What vision for the environment? CL
Page 15 and 16:
OVERVIEW 2011 MESSAGE FROM THE CHAI
Page 17 and 18:
“I am convinced the company’s p
Page 19 and 20:
Limassol Moscow Port Washington Val
Page 21 and 22:
JUNE ENERGY STORAGE FOR SEPTA The S
Page 23 and 24:
EBITDA (in e million) 110.0 406.6 1
Page 25 and 26:
35 30 25 20 STOCk MARkET INFORMATIO
Page 27 and 28:
MANAGEMENT COMMITTEE Saft’s Manag
Page 29 and 30:
ACTIVITIES INDUSTRIAL BATTERY GROUP
Page 31 and 32:
ACTIVITIES INDUSTRIAL BATTERY GROUP
Page 33 and 34:
“The role of batteries for teleco
Page 35 and 36:
Saft launched the SRM+ compact solu
Page 37 and 38:
ACTIVITIES SPECIALTY BATTERY GROUP
Page 39 and 40:
“The company is strongly penetrat
Page 41 and 42:
THE EXPERT EXPLAINS Each battery sy
Page 43 and 44:
COMMITMENTS RESEARCH & DEVELOPMENT
Page 45 and 46:
INNOVATION & COMMITMENTS RESEARCH &
Page 47 and 48:
This is a very important next step
Page 49 and 50:
INNOVATION & COMMITMENTS SUSTAINABL
Page 51 and 52:
kEY EVENT Saft policy is to fully c
Page 53 and 54:
FINANCIAL REPORT RISK FACTORS 53 SU
Page 55 and 56:
RISK FACTORS 2.1 Risks related to t
Page 57 and 58:
technologies, while maintaining a f
Page 59 and 60:
of expertise and affect the Group
Page 61 and 62:
2.5 MARKET RISKS 2.5.1 RAW MATERIAL
Page 63 and 64: RISK FACTORS 2 Risks related to the
Page 65 and 66: 2.8 INSURANCE The Group has a polic
Page 67 and 68: SUSTAINABLE DEVELOPMENT 3 3.1 Envir
Page 69 and 70: 3.1 ENVIRONMENTAL RESPONSIBILITY Fo
Page 71 and 72: Type and amount of waste generated
Page 73 and 74: 3.1.10 RESOURCE CONSERVATION Sustai
Page 75 and 76: 3.2.3 HUMAN RESOURCE MANAGEMENT The
Page 77 and 78: 3.3 CORPORATE SOCIAL RESPONSIBILITY
Page 79 and 80: III. CONCLUSION Moderate assurance
Page 81 and 82: CORPORATE GOVERNANCE 4 4.1 Manageme
Page 83 and 84: A short presentation of each Manage
Page 85 and 86: You will fi nd hereafter a short re
Page 87 and 88: The members of the Committees are:
Page 89 and 90: CORPORATE GOVERNANCE 4 Remuneration
Page 93 and 94: No stock options were awarded to em
Page 97 and 98: During the 2011 fi nancial year, th
Page 99 and 100: In the course of its meetings, the
Page 101 and 102: The Chairman of the Management Boar
Page 103 and 104: The control environment is subject
Page 105 and 106: eceives the consistent accounting a
Page 107 and 108: Other information 4 CORPORATE GOVER
Page 109 and 110: 4.5.2 DUTIES AND RESPONSIBILITIES O
Page 111 and 112: COMMENTS ON THE 2011 FINANCIAL YEAR
Page 113: 5 COMMENTS ON THE 2011 FINANCIAL YE
Page 117 and 118: 5.2.4 OTHER ACTIVITIES 5 COMMENTS O
Page 119 and 120: 5 COMMENTS ON THE 2011 FINANCIAL YE
Page 125 and 126: 2011 CONSOLIDATED FINANCIAL STATEME
Page 127 and 128: LIABILITIES 6 2011 CONSOLIDATED FIN
Page 129 and 130: 6 2011 CONSOLIDATED FINANCIAL STATE
Page 145 and 146: Risk management 6 2011 CONSOLIDATED
Page 153 and 154: Balance sheet by business segment A
Page 157 and 158: NOTE 8 GOODWILL 6 2011 CONSOLIDATED
Page 165 and 166:
17.2 PUBLIC GRANTS RELATED TO RESUL
Page 167 and 168:
6 2011 CONSOLIDATED FINANCIAL STATE
Page 169 and 170:
6 Notes 2011 CONSOLIDATED FINANCIAL
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
6 Statutory 2011 CONSOLIDATED FINAN
Page 187 and 188:
7 Balance PARENT COMPANY CERTIFIED
Page 189 and 190:
7 PARENT COMPANY CERTIFIED FINANCIA
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
INFORMATION ABOUT THE COMPANY AND I
Page 199 and 200:
8 INFORMATION ABOUT THE COMPANY AND
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
ANNUAL GENERAL MEETING 9.1 Overview
Page 211 and 212:
ANNUAL GENERAL MEETING 9 Statutory
Page 213 and 214:
3. Services Agreement Type of agree
Page 215 and 216:
ADDITIONAL INFORMATION 10 10.1 Docu
Page 217 and 218:
ADDITIONAL INFORMATION10 Offi cers
Page 219 and 220:
ADDITIONAL INFORMATION10 registrati
Page 221 and 222:
ADDITIONAL INFORMATION10 Annual fi
Page 223 and 224:
ADDITIONAL INFORMATION10 Cross-refe
Page 225 and 226:
The information contained in the ma
show all

ANNUAL REPORT 2011 REGISTRATION DOCUMENT - Saft

Create successful ePaper yourself

Delete template?

Save as template?