As resolved by the AGM, the nomination committee of Impact Coatings shall comprise three members representing the company’s largest shareholders in terms of votes, together with the Chairman of the Board as an adjunct member.

If any of the three largest shareholders decides not to exercise the right to appoint a representative on the nomination committee, the right is passed on to the next largest shareholder.

The nomination committee consists of:

   Kai Tavakka, Chairman, appointed by Accendo Capital SICAV RAIF
   Syafiq Johari, appointed by Hyundai Motor Company
   Torsten Rosell, appointed by Hans Österberg
   Mark Shay, Chairman of the Board, adjunct member

The AGM will be held in Linköping on May 18, 2022. The proposals of the nominating committee will be published in the invitation to the AGM and will be made available on the company website, www.impactcoatings.com.

Shareholders who wish to submit proposals to the nomination committee may do so via e-mail to investors@impactcoatings.se no later than February 1, 2022.

Impact Coatings CEO Torbjörn Sandberg will present at the Pareto Securities’ Renewable Energy & Cleantech Conference today, October 13. The full-day online event will feature presentations by Scandinavian companies in the rapidly growing renewable energy and cleantech sectors.

The conference is accessible only to registered clients of Pareto Securities, but the presentation material from Impact Coatings is now available on the company’s website via the link https://impactcoatings.com/presentationer-dokument-en/.

As mentioned in the Impact Coatings Q2 2021 interim report, the Board of Directors decided to extend the subscription period of the AGM-approved 2021/2024 employee warrant program per the program’s conditions. As of the interim report publication date August 20, 2021, the program remained open. Warrant subscription proceeds in the amount of SEK 118,000 were disclosed in the Q2 2021 financial statements. The warrant program was closed on August 27, 2021. Additional warrant subscription proceeds in the amount of SEK 107,600 were received during the period July 1 – August 27, 2021.

FINANCIAL RESULTS SECOND QUARTER 2021

● Net sales amounted to SEK 14,308 thousand (5,016)
● Change of work in progress amounted to SEK -3,208 thousand (4,377)
● Total revenue amounted to SEK 11,586 thousand (9,726)
● Operating profit amounted to SEK -11,216 thousand (-6,305)
● Operating profit after financial items amounted to SEK -11,219 thousand (-6,305)
● Cash flow amounted to SEK -16,099 thousand (-2,299)
● Liquidity ratio amounted to 650% (282)
● Order backlog at period end amounted to EUR 1,456 thousand (3,765)

FINANCIAL RESULTS JANUARY-JUNE 2021

● Net sales amounted to SEK 24,513 thousand (10,039)
● Change of work in progress amounted to SEK -8,444 thousand (5,933)
● Total revenue amounted to SEK 16,941 thousand (16,301)
● Operating profit amounted to SEK -22,694 thousand (-12,188)
● Operating profit after financial items amounted to SEK -22,697 thousand (-12,190)
● Cash flow amounted to SEK 106,882 thousand (-7,150)
● Liquidity ratio amounted to 650% (282)

SIGNIFICANT EVENTS SECOND QUARTER 2021

● Coating system order for radomes from HELLA Saturnus Slovenija (Slovenia)
● Delivery and final acceptance of coating system for fuel cell development for Hyundai (South Korea)

SIGNIFICANT EVENTS AFTER THE PERIOD

● Coating system order for fuel cells from Symbio (France)

CEO’S COMMENTARY

Impact Coatings continued its strategic progress during the second quarter. We have continued proving our ability to deliver and that we are continuously maturing as an industrial company. This is reflected not least by a follow-on order received during the quarter in the field of automotive safety – the third system order in less than a year connected to the global automotive supplier HELLA.

The Coating Services business in Linköping, which is an important part of the sales process for future coating systems, has maintained a high activity level and closed yet another quarter with significantly increased revenues. During the second half of the year, we will be investing in increased production capacity and automation, with the planned addition of a robot. Beyond increased efficiency, this will improve our ability to help customers with their own production automation.

Despite the ongoing pandemic, we delivered and obtained final acceptance during the second quarter of a coating system for fuel cell development from our development partner Hyundai in Korea.

Joint development work with Hyundai in coating technology for fuel cells and related hydrogen applications continues, and we have in parallel enhanced our presence in Korea through cooperation with a local business partner. With our own Korean office as a base, we are working together with our local partner to establish Impact Coatings broadly in the Korean market, where there are several relevant customers in both hydrogen and automotive safety applications.

After the period end, we received a system order from the French fuel cell system manufacturer Symbio – our first European fuel cell system order and a recognition of our strong offering in the segment. Generally, we see that European and North American companies within hydrogen and fuel cell-related areas are advancing their positions, with several large automotive suppliers driving progress.

During the past year, we have intensified our relations within the European and North American fuel cell industries. To further strengthen our presence, this spring we engaged Robert Mamazza as President – North America. Recruiting of a President – EMEA is ongoing, and the position will initially focus on the company’s positioning and sales in the European fuel cell industry. In May, Anette Therén joined the company as VP Marketing & Communications with the goal of implementing a more structured and customer-oriented communications strategy.

Our development team is working intensively on our next generation coating system designed to meet the increasing capacity demands of the fuel cell industry. Development will enhance our ability to adjust fuel cell coatings for specific technical requirements, and to provide delivery models that meet companies’ differing stages of development.

Within automotive safety we are in constant dialog with companies about coating solutions for radomes and cost-effective antenna coatings for automotive radar. The past year’s three system orders related to the HELLA Group were all for coating of radar emblems, or radomes. The German automotive industry group is a leading global supplier of automotive lighting and electronics, where radar and radar emblems are examples of products within the field of automotive safety. We are committed to delivering innovative, cost-effective production technology to our existing strategic customers, and we see a growing business potential within the whole automotive safety segment.

With some trepidation, markets are opening up in Europe and around the world, allowing travel and in-person meetings. At present, it looks like industry exhibitions and other planned events will take place during the autumn. I sincerely hope the momentum continues as I am personally looking forward to meeting IRL – in real life customers, partners, and other industrial players in the coming months, as well as Impact Coatings shareholders.

Torbjörn Sandberg, CEO

The full report is attached, and can be retrieved on the company’s website at www.impactcoatings.com/finansiella-rapporter-arkiv/.

Impact Coatings has received an order for an INLINECOATER™FC system from the fuel cell system manufacturer Symbio. The value of the system order is approximately EUR 1 million. Final delivery of the system is planned to the fourth quarter of 2021.

As mentioned in the first quarter financial report, Carina Höglund has been appointed VP Coating Services and joined the management team during the first quarter of 2021. Carina holds a Ph.D. in Thin Film Physics from Linköping University and joined impact Coatings as Senior Technology Expert in 2019. Carina and her team will develop and expand Impact Coatings’ Coating Services offering in close collaboration with customers and our R&D team.

In early May 2021, Anette Therén, with a background in the cleantech and innovation sectors, joined Impact Coating’s management team as VP Marketing & Communications. Peter Högfeldt, previously VP Marketing, has transitioned to a new role as VP Business Development & Investor Relations with a focus on strategic partnerships and investor relations.

Will Wright, previously VP Sales with responsibility for fuel cell business development and based in Seoul, Korea since late 2020, has left Impact Coatings at the end of March 2021 to pursue other activities. We thank Will for his contributions during his time with the company.

To strengthen our position in Korea, Impact Coatings has engaged Asian business development consultancy Intralink. Intralink’s Nils Meesterburrie, based in Seoul, has been appointed Sales Director, Korea and is now responsible for the Hyundai partnership as well as growth in the Korean market.
 
Robert Mamazza, with a Ph.D. in Electrical Engineering from the University of South Florida and extensive experience in PVD thin film coatings from, among others, Oerlikon, has been appointed President, North America as of April 2021. Robert will develop our go-to-market strategy and has commercial delivery responsibility for important fuel cell and automotive safety customers in the U.S. and Canada.

Our next step in strengthening the organization is currently focused on recruiting a President for the EMEA region, based in Germany.

“The strengthened management team will help Impact Coatings extend the reach and capabilities of our global sales team and develop new strategic partnerships that will help us meet the most rigorous demands of our industrial customers. We also intend to implement a more structured and customer-centric approach to our marketing communications to further enhance our market position,” said Torbjörn Sandberg, CEO.

Among other items, the AGM decided:
 
To approve the income statement and balance sheet for 2020, as proposed by the Board of Directors.
 
To allocate the annual result according to the Board’s proposal.
 
That the Board of Directors and CEO Torbjörn Sandberg were granted release from liability.
 
To elect Mark Shay, Christian Sahlén, Sukhwan Yun, Göran Malm and Per Wassén to the Board of Directors, and to re-elect Mark Shay as Chairman of the Board.
 
That remuneration of SEK 180,000 shall be paid to the Board’s ordinary members and remuneration of SEK 300,000 shall be paid to the Chairman of the Board, with no additional remuneration for committee work.
 
That Öhrlings PricewaterhouseCoopers AB (”PwC”), with lead auditor Johan Palmgren, is elected company auditor.
 
That the procedure for constituting the next Nomination Committee was approved.
 
To approve the Board’s proposal to introduce a warrant-based incentive program for employees.
 
To reject the Nomination Committee’s proposal to introduce a warrant-based incentive program for certain Board members.
 
That the Board of Directors is granted a mandate to decide on the issuance of shares and/or options and/or convertible securities.
 
That the Board of Directors is granted a mandate to make minor corrections to decisions taken at the annual general meeting as related to registration with the Swedish Companies Registration Office and Euroclear Sweden AB.

Accendo Capital SICAV RAIF, which owns 6,816,016 shares in Impact Coatings, corresponding to 12.04% of shares outstanding, submitted its duly filled ballot, voting in favor of all company proposals. Due to an administrative error at the custodian bank, the votes are not included in the official vote count, but are provided here for informational purposes. Including the votes in the official vote count would not alter the voting outcome as reported.

FINANCIAL RESULTS FIRST QUARTER 2021

• Net sales amounted to SEK 10,205 thousand (5,023)
• Change of work in progress amounted to SEK -5,236 thousand (1,555)
• Total revenue amounted to SEK 5,355 thousand (6,574)
• Operating profit amounted to SEK -11,478 thousand (-5,883)
• Operating profit after financial items amounted to SEK -11,479 thousand (-5,885)
• Cash flow amounted to SEK 122,980 thousand (-4,851)
• Liquidity ratio amounted to 673% (523)
• Order backlog at period end amounted to EUR 1,685 thousand (2,120)

 SIGNIFICANT EVENTS FIRST QUARTER 2021

• Coating system order for radomes from HELLA MINTH Jiaxing Automotive Parts Co., Ltd. (China)
• Directed share issue to Swedish and international institutional investors, with proceeds to the company of approximately SEK 120 million before deduction of transaction costs

 SIGNIFICANT EVENTS AFTER THE PERIOD

• Coating system order for radomes from HELLA Saturnus Slovenija (Slovenia)

 
CEO’s COMMENTARY

Impact Coatings is in an exciting period of expansion, during which we are advancing our product offerings, how we approach our markets, and our industrial presence − especially within hydrogen, fuel cells, and automotive safety.
 
I have in previous reports discussed our focus on sales and internationalization. Last year, we opened new sales offices in Italy and South Korea, and our sales director for the important Chinese market is since the end of 2020 located in China (previously in Sweden). We turn our attention now toward additional markets with significant players in both the hydrogen-related and automotive industries. We are working currently on establishing Impact Coatings in North America, and we see as the next natural step a local presence in Germany.
 
We are intensifying our activities within the Fuel Cells segment, including of course our joint development with Hyundai, and we are investing in both process improvements and the development of a next generation coating system to meet customers’ future volume needs. The development machine that Hyundai ordered during 2020 is in place at Hyundai’s facilities in South Korea. Delays in customs clearance in combination with shifting quarantine regulations, however, have prevented us from completing the delivery on-site and final delivery is now planned for the second quarter this year.
 
We see an increased need for cost-effective coating solutions for critical components within automotive safety, where we have a growing group of reference customers. During the first quarter and just after its end, we received two additional orders for coating systems for radar-transparent emblems for automotive radar. Both orders are from companies connected to the German HELLA Group, which is a world-leading supplier to the automotive industry in this segment.
 
We offer and are developing further a broad range of products and services. Beyond selling coating systems, we can offer machine rental or leasing contracts, as well as service and support agreements. Within Coating Services, we can serve and support our customers all the way from R&D through pre-series production and initial volume production. Thereafter, customers can realize significant cost benefits by investing in a coating system for their own in-house production. Looking ahead, we see the expansion of Coating Services closer to or on customer premises as a logical development.
 
Coating Services reported its highest ever annual revenue during 2020 and has continued at a good level during this year’s first quarter. Starting with this quarterly report, we will report Coating Services revenue. We should expect that portions of Coating Services sales can at times shift over to system sales when a customer decides to purchase their own coating system, which is entirely in line with our objectives. In connection with the development and potential in the Coating Services offering, I have during the first quarter welcomed Carina Höglund, PhD, to the management team as VP Coating Services. Carina and her team combine deep technical expertise with a focus on customers’ specific requirements and effective process work.
 
The directed share issue in February, which generated SEK 120 million in proceeds to the company before transaction costs, provides the means to accelerate the expansion we have started. The share issue also demonstrates the confidence that institutional investors, both in Sweden and abroad, have in our coating expertise, our product offerings, and the potential of global megatrends such as hydrogen energy, automotive safety, and sustainable industry. I welcome all our new shareholders and send regards to those of you who have long been with us as owners. Together, we have many exciting years of innovation and growth ahead of us.
 
Torbjörn Sandberg, CEO
 

The full report is attached, and can be retrieved on the company’s website at www.impactcoatings.com/finansiella-rapporter-arkiv/.

Impact Coatings’ annual report for 2020 (in Swedish) is attached, and is available for download from the company’s website at www.impactcoatings.com/finansiella-rapporter-arkiv/.