Saft Groupe SA Reports Quarterly Financial Information for the First Quarter of 2010

PARIS, April 29, 2010 /PRNewswire-FirstCall/ -- Saft, leader in the design, development and manufacture of high-end batteries for industry and defence, announces its sales for the first quarter of 2010.

                                 Sales highlights

    - Q1 2010 sales were EUR135.6m, a reduction YoY of 6.9% as reported and
      6% at constant exchange rates.
    - Q1 sales in line with management expectations.
    - Continued recovery seen in the markets impacted by the recession of
      2009.
    - Full year sales and profitability guidance is confirmed.

John Searle, Chairman of the Management Board, commented:

"Overall I am satisfied with the Q1 sales which were in line with our expectations when building the 2010 guidance."

"The recovery in the level of demand in our non project civil business continues and I believe that this now represents a real recovery in underlying demand and not simply the end of destocking. The activities which were the most affected by the recession have shown impressive growth, most notably our small nickel battery and civil lithium businesses."

"The sales of our more project orientated businesses were lower in Q1. Our late cycle, industrial standby power business, has yet to return to growth and our military activities will not generate the growth performance seen in 2009. Nevertheless I do expect growth in Q2 and in the coming quarters."

    "Finally, I can confirm that our 2010 guidance is unchanged."
    TURNOVER (EUR millions, at actual exchange rates)
    First quarter 2010

                    Q1 2010       Q1 2009          Growth / (decline)
                                                at actual      at constant
                                              exchange rates  exchange rates
    IBG                77.2          79.6          (3.0)%         (1.9)%
    SBG                58.4          66.0         (11.4)%        (10.9)%
    Total              135.6         145.6         (6.9)%         (6.0)%

The average exchange rate in Q1 2010 was EUR1 to $1.38 (compared with EUR1 to $1.30 in Q1 2009).

There was no change in perimeter between Q1 2009 and Q1 2010.

Sales for the quarter ending 31st March 2010 were EUR135.6m, a reduction of 6.9% as reported and 6.0% at constant exchange rates.

Industrial Battery Group (IBG)

Based on the new perimeter effective since the 1st July 2009, the sales in Q1 totalled EUR77.2m, a reduction of 3.0% YoY at actual exchange rates and 1.9% at constant rates.

During the quarter, the telecom back-up power activity saw good growth helped by increasing sales of our new range of product to a growing number of customers. In addition, the aviation market has seen an inflexion, recording slight growth after 6 negative quarters, building on the trend seen during Q4 2009.

The other traditional IBG activities recorded reduced sales during the quarter. The industrial standby power business continues to be impacted by low bookings during 2009 and a challenging comparable from Q1 2009. The rail segments suffered from the uneven project deliveries following a strong Q4 2009. These activities are expected to recover in the coming months.

Finally, the small nickel battery activity (ex. RBS) recorded very strong growth, notably from the professional electronics markets. This activity was the most severely affected by the crisis in 2009 and was the first activity to show signs of recovery in H2 2009.

Specialty Battery Group (SBG)

Sales during Q1 were EUR58.4m, a YoY reduction of 11.4% at actual exchange rates and 10.9% at constant rates.

The civil lithium electronics business recorded YoY growth in the quarter after having seen sharp reductions in demand in Q2/Q3 2009.

In contrast, the military and space markets reported reduced YoY sales in the quarter due to unfavourable project timing and a challenging basis of comparison. Again, these activities will have a stronger performance in the coming quarters.

Johnson Controls-Saft

Johnson Controls-Saft started production of Li-ion batteries for its second customer, BMW, during Q1 at its plant in Nersac, France.

A development contract with Bergstrom for auxiliary batteries for "no-idle" system was announced during the quarter. This will be the first business for Johnson Controls-Saft in the heavy goods vehicle segment and builds on the successes announced during 2009.

The project to create a new site in Michigan State is progressing as planned.

Jacksonville project

The project is progressing as planned. The official groundbreaking ceremony took place on March 15th.

This plant will build Li-ion batteries, in particular for the renewable energy storage market. Opportunities continue to develop well in this market and Saft is confident of initial successes this year.

    Financial calendar 2010

    Annual shareholders' meeting                              9 June 2010
    2010 Q2 turnover and half year earnings                   28 July 2010
    2010 Q3 turnover                                        3 November 2010

IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS

Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, objectives or results of operation. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Saft's plans and objectives to differ materially from those expressed or implied in the forward looking statements.

About Saft

Saft (Euronext: Saft) is a world specialist in the design and manufacture of high-tech batteries for industry. Saft batteries are used in high performance applications, such as industrial infrastructure and processes, transportation, space and defence. Saft is the world's leading manufacturer of nickel batteries for industrial applications and of primary lithium batteries for a wide range of end markets. The group is also the European leader for specialised advanced technologies for the defence and space industries and world leader in lithium-ion satellite batteries. Saft is also delivering its lithium-ion technology to the emerging applications of clean vehicles and renewable energy storage. With approximately 4,000 employees worldwide, Saft is present in 18 countries. Its 15 manufacturing sites and extensive sales network enable the group to serve its customers worldwide. Saft is listed in the SBF 120 index on the Paris Stock Market.

    For more information, visit Saft at http://www.saftbatteries.com

    SAFT
    Jill Ledger, Corporate Communications and Investor Relations Director
    Tel: +33-1-49-93-17-77, [email protected]

    FINANCIAL DYNAMICS
    Stephanie BIA, Tel: +33-1-47-03-68-16, [email protected]

    Yannick DUVERGE, Tel: +33-1-47-03-68-10,
    [email protected]

    Clement BENETREAU, Tel: +33-1-47-03-68-12,
    [email protected]

SOURCE Saft