Saft Groupe SA Reports Fourth Quarter and Full Year 2008 Sales

PARIS, January 30 /PRNewswire-FirstCall/ — Saft, leader in the design,
development and manufacture of high-end batteries for industry and defence,
announces its sales for the fourth quarter and the year ended 31 December
2008.

                                Sales highlights

     - Q4 2008 sales up by 0.7% YoY at EUR163.1m at constant exchange rates:

       - IBG (2.8)%
       - SBG +7.6%
       - RBS (7.6)%

    - Full year 2008 sales up by 4.9% YoY at EUR609.4m, at constant exchange
      rates:

       - IBG +6.8%
       - SBG +6.7%
       - RBS (6.8)%

    - Q4 2008 sales as reported are up by 2.1% YoY and by 1.5% YoY during
      full year 2008.

John Searle, Chairman of the Management Board, commented:

“Saft is still showing sales growth during Q4 2008 but at a lower rate
than seen in previous quarters. As anticipated, the top line growth driver
during the quarter was the SBG Division, with a continued recovery in the
military activities. The IBG Division saw a sharper slowdown in the telecom
market than had been expected, whilst the performance of the RBS Division
reflects the impact of falling nickel costs on selling prices.

The overall growth at 4.9% YoY at constant rates was a good performance
in the changing economic conditions, with our two main divisions performing
equally well.

I can confirm that I expect the EBITDA margin for the full year 2008 to
be in line with guidance reconfirmed in November 2008.

During the last 3 months, Saft has announced further successes with its
exciting emerging opportunities, notably the renewable energy project with
ABB and a new production contract for Johnson Controls-Saft in the hybrid
commercial vehicle market in the US with Azure. Deliveries of Li-ion
batteries to Azure will begin in 2010.”

    TURNOVER (EUR millions, under IFRS)

    Fourth quarter

    Period           Q4 2008     Q4 2007         Growth / decline

    Exchange rate  Actual 2008 Actual 2007   at actual     at constant
                                          exchange rates exchange rates

    IBG               75.9        77.8         (2.4)%         (2.8)%
    SBG               68.2        61.8         10.4%           7.6%
    RBS               19.0        20.2         (6.1)%         (7.6)%
    Total            163.1       159.8          2.1%           0.7%

The average exchange rate in Q4 2008 was EUR1 to $1.32 (compared with
EUR1 to $1.45 in Q4 2007).

There was no change in perimeter between Q4 2007 and Q4 2008.

Q4 2008 sales of EUR163.1m were up 2.1% as reported and up 0.7% at
constant exchange rates, compared with Q4 2007.

    Year ended 31 December 2008

    Period           FY 2008     FY 2007         Growth / decline

    Exchange rate  Actual 2008 Actual 2007   at actual     at constant
                                          exchange rates exchange rates

    IBG               292.1       282.4         3.4%           6.8%
    SBG               240.8       234.7         2.6%           6.7%
    RBS                76.5        83.4        (8.3)%         (6.8)%
    Total             609.4       600.5         1.5%           4.9%

The average exchange rate for 2008 was EUR1 to $1.47 (compared with EUR1
to $1.37 during 2007).

There was no change in perimeter between 2007 and 2008.

Sales for the year ended 31 December 2008 of EUR609.4m were up 1.5% as
reported and up 4.9% at constant exchange rates, compared with 2007.

Industrial Battery Group (IBG)

In the final quarter of 2008, IBG sales decreased by 2.4% YoY as reported
to EUR75.9m, and by 2.8% YoY at constant exchange rates.

There was a contrasting performance between markets during Q4 2008. Sales
of industrial standby batteries continued to grow strongly, with the telecom
and aviation markets being weaker. Sales to a key telecom customer reduced
very sharply during the quarter and the expected slower demand in the
aviation after-market was compounded by airlines and distributors destocking.

For the full year 2008, IBG sales increased by 3.5% YoY as reported to
EUR292.2m, and by 6.8% YoY at constant exchange rates.

The nickel hedging position was unchanged during Q4 2008, as the Division
has 70% of its 2009 needs hedged.

Specialty Battery Group (SBG)

The Division had quarterly sales growth of 10.4% YoY as reported to
EUR68.2m, which equated to an increase of 7.6% YoY at constant exchange rates.

During the quarter, the main growth driver was the military activities
which registered strong quarterly growth. Initial sales were made to the US
Army under the new multi-year contract coupled with large deliveries of
Li-ion batteries to the Indian Army. Additionally, output of silver batteries
was at record levels.

For the full year 2008, SBG sales increased by 2.6% YoY as reported to
EUR240.8m, and by 6.7% YoY at constant exchange rates.

Rechargeable Battery Systems (RBS)

During the quarter, RBS sales decreased by 6.1% YoY as reported to
EUR19.0m, and decreased by 7.6% YoY at constant exchange rates.

As in earlier quarters, sales were impacted by falling nickel prices
which averaged $10.5k/t during Q4 2008 compared with $18.9k/t during Q3 2008.
The indexing of prices again accounted for almost all of the decrease in
sales in the quarter, with only a very small reduction in volumes of
approximately 1% being recorded.

For the full year 2008, sales decreased by 8.3% YoY as reported to
EUR76.5m, and by 6.8% YoY at constant exchange rates. The emergency lighting
market remains challenging but the Division remains focused on benefitting
from reduced competition during 2009.

    Financial calendar 2009

    2008 earnings release                        19 February 2009
    2009 Q1 turnover                             29 April 2009
    2009 Q2 turnover and half year earnings      29 July 2009
    2009 Q3 turnover                             2 November 2009

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-cadmium 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. 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

    Press and Investor Contacts:

    SAFT
    Jill LEDGER, Corporate Communications and Investor Relations Director
    Tel.: +33-1-49-93-17-77, jill.ledger@saftbatteries.com

    FD
    Valéry LEPINETTE, Tel.: +33-1-47-03-68-62: valery.lepinette@fd.com
    Yannick DUVERGÃ"°, Tel.: +33-1-47-03-68-10, yannick.duverge@fd.com
    Clément BENETREAU, Tel.: +33-1-47-03-68-12, clement.benetreau@fd.com

SOURCE Saft