1. No category

Saft strategy
Bruno Dathis
Investor day – Jacksonville, November 2014
Agenda
1. Saft today
2. Favorable business environment
3. Saft is well positioned to benefit from industry growth
4. Saft’s business strategy
5. 2015-2018 ambitions
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Investor day – Jacksonville, November 2014
1. Saft today
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Investor day – Jacksonville, November 2014
Saft, a solid and resilient platform for the future
 A leading presence across diversified end-markets
 Large and diversified customer base
 Large portfolio of technologies & products
 A clear positioning in the competitive landscape
 A well-balanced activity per application, technology and region
 An international industrial footprint & a strong commercial network
 Strong capital structure & high profitability across the business cycle
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Investor day – Jacksonville, November 2014
One business in diversified end-markets
 Sales 2013: €624.2m
Transportation
Aviation
Rail
Industrial vehicles
Civil electronics
59%
41%
Stationary back-up power
Industrial standby
Telecom networks
Energy storage systems
Industrial Battery Group (IBG)
Specialty Battery Group (SBG)
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Investor day – Jacksonville, November 2014
Space & Defence
Space
Military lithium
Traditional defence
New defence systems
A leader in industrial and specialty batteries
Leading market positions
Unique customer base
 1 in industrial nickel-based batteries
for aircraft, rail, standby power
 1 in primary lithium batteries for
electronics and defence industries
 1 in satellite and launcher batteries
 Leading supplier of Li-ion batteries
for ESS and telecom markets
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Investor day – Jacksonville, November 2014
ITRON
Saft, a solid and resilient platform for the future
 A leading presence across diversified end-markets
 Large and diversified customer base
 Large portfolio of technologies & products
 A clear positioning in the competitive landscape
 A well-balanced activity per application, technology and region
 An international industrial footprint & a strong commercial network
 Strong capital structure & high profitability across the business cycle
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Investor day – Jacksonville, November 2014
A well balanced activity
Diversified applications
Transportation
Stationary
Civil electronics
Space & defense
16%
22%
2013 sales by technology
Nickel
Lithium-ion
Primary lithium
Others
8
14% 2%
30,0%
48,3%
Investor day – Jacksonville, November 2014
Europe
North America
Asia/Oceania
Middle East and Africa
3,8%
25%
37%
2013 sales by region
17,9%
20%
32%
32%
Saft, a solid and resilient platform for the future
 A leading presence across diversified end-markets
 Large and diversified customer base
 Large portfolio of technologies & products
 A clear positioning in the competitive landscape
 A well-balanced activity per application, technology and region
 An international industrial footprint & a strong commercial network
 Strong capital structure & high profitability across the business cycle
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Investor day – Jacksonville, November 2014
Extending international footprint
to include emerging economies
 14 manufacturing facilities and 30 sales offices
in the Americas, EMEA and Asia
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Investor day – Jacksonville, November 2014
Saft, a solid and resilient platform for the future
 A leading presence across diversified end-markets
 Large and diversified customer base
 Large portfolio of technologies & products
 A clear positioning in the competitive landscape
 A well-balanced activity per application, technology and region
 An international industrial footprint & a strong commercial network
 Strong capital structure & high profitability across the business cycle
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Investor day – Jacksonville, November 2014
2. Favorable business environment
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Investor day – Jacksonville, November 2014
Market environment
Numerous factors supporting growth
Resource
scarcity
Energy efficiency
Emerging markets
Regulations
Infrastructure
needs
Mobility
Communications
Security & safety
Smart
applications
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Investorsday – Jacksonville, November 2014
Machine
to
Machine
Big data
Internet of
things
Growth across all technologies
Avicenne Energy – Batteries 2014, Nice
 Highest growth is Lithium-ion
 Li-ion: 2003/2013 CAGR of
14% per year in value*
 Industrial Ni-Cd is growing
 Worldwide Primary lithium
market growing at 6.6%
per year over 2010-2016**
* Avicenne Energy,Sept. 2014
** Frost & Sullivan
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Investorsday – Jacksonville, November 2014
Strong growth potential for Saft’s targeted
new Li-ion markets
Total LIB ESS Market(1)
 Demand for lithium-type ESS
applications will grow by 35%
(in volume) annually on average
between 2015 and 2020*
 New Li-ion applications:
UPS, telecom, forklifts, medical,
residential and grid ESS: CAGR>15%
over 2010-2025 period.**
* Roland Berger, Oct.2013
** Avicenne Energy, Sept. 2014
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Investor day – Jacksonville, November 2014
(1) Excludes vehicles/consumer
Illustration of diversity of growth opportunities
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Investorsday – Jacksonville, November 2014
3. Saft is well positioned to benefit
from industry growth
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Investor day – Jacksonville, November 2014
Our innovation is commercially driven
 A chemistry portfolio for the right answer to customer application requirements

Nickel, Primary lithium, Lithium-ion
 Large portfolio of products + tailored products for clients
 Cost competitiveness



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Limited range of standard cells
Standard modules – building block approach
Large and highly automated manufacturing capabilities
Investor day – Jacksonville, November 2014
Integrated expertise for the benefit of customers
Cell design
Electrochemistry
Battery system
design & engineering
Cell manufacturing
Maintenance
and servicing
Modules and battery
systems assembly
 Enhance interactions with customers to facilitate and optimize their own product
development
 We have made the clear choice to sell Li-ion battery systems, not cells
 Innovation for added value
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Investor day – Jacksonville, November 2014
Strong relationship with customers facilitates
cross-fertilizion of our end-markets
 Identification of new trends and development of new ideas from client relationship
 Our larger customers operate in multi-application market segments, fostering
innovation cross-fertilisation:


Telecommunication networks:
4G, Wifi, DPCO, data centers, ….
Energy storage:
PV, Solar, T&D, Community Energy Storage, smart buildings, residential storage
 A unique positioning in both civil and military markets and applications
 Pulsing innovation from niche to mainstream markets:



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Space
Formula 1
Military
Investor day – Jacksonville, November 2014
Operational excellence at every step of the process
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Research & Development
Saft supply chain
•High quality resources
•Continuous investment
for innovation
• Over 450 engineers and
technicians
• 9 to 10% of revenue in
R&D
•Cross-functional
organization
•Worldwide sourcing with
global players
•Access to best/advanced
materials
•Prices competitiveness
monitoring
•Costs reduction
roadmaps
Investor day – Jacksonville, November 2014
Manufacturing
excellence
Strong sales &
distribution network
•Lean manufacturing
•Quality organization
•Saft World Class Program
•10+ years Li-ion
manufacturing
•Environmental
consciousness
•Enlarge Saft network in
Emerging countries
•Dedicated teams to
address specific markets
4. Saft’s business strategy
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Investor day – Jacksonville, November 2014
Focused growth strategy
 Continue to grow sales for traditional technologies in existing markets
 Geographical expansion in emerging countries
 Market share gains by leveraging leading positioning and branding
 Support customers for technology upgrades
 Consider new applications for existing products
 Create additional growth poles with Li-ion technology
 Entering growing emerging applications & markets where Saft can provide high value
 Focus on product performance and cost competitiveness
 New revenue stream through servicing
 Opportunistic approach on add-on acquisitions / partnerships
 Niche markets in traditional technologies
 Geographical expansion
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Investor day – Jacksonville, November 2014