CEO’S COMMENTARY

Impact Coatings had a good order intake for coating systems during the first half of the year – in terms of orders the strongest start to the year in the company’s history. Our sales organization has handled the corona pandemic’s challenges and closed several well-advanced system deals. The order backlog for systems was roughly EUR 3.8 million as of the period end.

We have won important orders within strategic business segments. During the second quarter, we signed an order agreement with automotive component supplier HELLA for the delivery of a coating system for radomes – radar-transparent automotive emblems – which form part of a vehicle safety system.

In June, Hyundai Motor Company ordered a coating system for fuel cells – a result of the Joint Development Agreement (JDA) signed during 2019, when Hyundai also became a shareholder in Impact Coatings. The establishment of a local office in South Korea for development and sales – also a part of the JDA – has been prepared pending eased travel restrictions. In the meantime, development work together with Hyundai has proceeded remotely.

The development of a hydrogen society with fuel cells has received substantial media attention during the summer. First, Germany adopted an aggressive national hydrogen strategy, which was followed by a hydrogen strategy for the broader EU, in which the European Commission estimates substantial industry investments in renewable hydrogen. Even the Swedish government, finally, has decided to create a strategic plan for hydrogen. In South Korea, where our partner Hyundai is active, hydrogen-based mobility is an important part of the “Korea New Deal,” which president Moon Jae-in has proposed to help lift the country from the corona crisis through investment. Hyundai has in conjunction with this proposal presented plans for the development of next-generation, more durable fuel cells, and an aggressive rollout of both heavy and light fuel cell vehicles.

The company’s operating loss for the first half of 2020 improved somewhat from 2019 as a result of cost savings, despite the lower revenues. No coating system was shipped during the first six months of 2020, commensurate with the order development of 2019. By comparison, two system deliveries were completed during H1 2019.

Revenues for Q2 2020 include SEK 2,151 thousand from an advance payment by China Hydrogen Energy for a system order in 2016 that Impact Coatings in 2018 declared no longer valid. In connection with the order being declared no longer valid, the company communicated that we aimed to retain the advance payment to cover costs. Following a legal review, the advance that was previously booked as a liability has during Q2 2020 been recognized as income, a positive conclusion to the situation.

An additional positive development connected to China is the agreement we have entered into with the technology and service provider NET, which will represent Impact Coatings in China for system maintenance, first-line support, and the distribution of consumable materials and spare parts. Offering local service in this potentially significant market is important for both existing customers and for future sales.

The strong system order backlog, in spite of COVID-19, means we have had a full utilization during H1 2020. The pandemic has not adversely affected our projects for delivery, but continued restrictions during the autumn can affect our ability to install systems at customer premises according to plan. Minor supply chain disruptions have been handled and we continue to closely monitor the situation. As for many other export companies, COVID-19 impedes sales work, which affects our pipeline for future system sales. Even aftermarket service and the Coating Services segments are affected to some degree by travel restrictions and customers’ closed factories.

During the coming months, we will focus fully on producing and delivering the coating systems on order, and on intensifying the development efforts with Hyundai and other customers. Provided the world continues to open up, there is a continued high potential in our sales pipeline and we view favorably market developments in, above all, fuel cells and metallization of plastic including radomes and other automotive components. We are preparing ourselves for a busy second half of the year.

Torbjörn Sandberg

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

For more information contact:

Torbjörn Sandberg, CEO
Tel: +46 (0)768-43 43 76

Marie Dhayer Teikmans, CFO
Tel: +46 (0)70-812 71 96

E-mail: investors@impactcoatings.se

The information was delivered, via the contact persons named above, for publication on August 18, 2020, at 08:00 a.m. CEST.

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IMPACT COATINGS AB - INTERIM REPORT APRIL-JUNE 2020

For more information contact:

Marie Dhayer Teikmans, CFO
+46 708 12 71 96

E-mail: investors@impactcoatings.se

The information was delivered, via the contact person named above, for publication on June 22, 2020, at 3:30 p.m. CEST.

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For more information contact:

Torbjörn Sandberg, CEO
+46 768 43 43 76

Peter Högfeldt, VP Marketing
+46 708 87 44 34

E-mail: investors@impactcoatings.se

Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact persons named above, for publication on June 10, 2020, at 12:50 p.m. CEST.

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HELLA Saturnus Slovenija is a member of the international HELLA Group and one of the largest Slovenian exporters. The company is a supplier to the global automotive industry.

For more information contact:

Torbjörn Sandberg, CEO
+46 768 43 43 76

Peter Högfeldt, VP Marketing
+46 708 87 44 34

E-mail: investors@impactcoatings.se

Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact persons named above, for publication on May 25, 2020, at 11:15 a.m. CEST.

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Among other items, the AGM decided:

To approve the income statement and balance sheet for 2019 as proposed by the board of directors.

To allocate the annual result according to the board’s proposal, in which the unrestricted capital, including the annual result, of SEK 81,504,641, is carried forward.

That the board of directors and CEO Torbjörn Sandberg were granted release from liability.

That Mark Shay, Christian Sahlén, Lars-Gunnar Skötte, Tanja Vainio, and Sukhwan Yun were re-elected to the board of directors, that Göran Malm was elected as a new member of the board, and that Mark Shay was re-elected to be 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.

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 Registra-tion Office and Euroclear Sweden AB.

For more information, contact:

Mark H. Shay, CFA
Chairman of the Board
Tel. +46 765 96 62 38 or e-mail: mark@accendofund.com

The information was delivered, via the contact person named above, for publication on May 14, 2020, at 3:00 p.m. CEST.

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The CEO presentation to the AGM and other AGM documents are now available on the company’s website, www.impactcoatings.com/arsstamma-2020/. The AGM bulletin will be sent after the close of the meeting.

CEO Torbjörn Sandberg will also be presenting at Redeye Growth Day on June 2, which this year will be a web event. The presentation will be streamed on Redeye’s website, www.redeye.se, where the program for the day will also be published.

For more information contact:

Torbjörn Sandberg, CEO
+46 768 43 43 76

Peter Högfeldt, VP Marketing
+46 708 87 44 34

E-mail: investors@impactcoatings.se

The information was delivered, via the contact persons named above, for publication on May 14, 2020, at 08:00 a.m. CEST.

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CEO’S COMMENTARY

Impact Coatings had a good first quarter. We signed two agreements for system deliveries, one with Zanini Auto Group in Spain and one with a German supplier of precision tools to the global textile industry.

The order from Zanini is the company’s first in a new, exciting area with strong expected growth: radomes – radar-transparent emblems that cover vehicle radar. The application is driven by the autonomous vehicle trend, with many components requiring cost-effective technology for metallization of plastic. A related area is plastic antennas for vehicles, IoT and 5G, where several manufacturers are developing new solutions. Radomes and antennas comprise a new business opportunity within the segment metallization on plastic, a stable pillar and complement to our unique offerings in fuel cells.

The order from the German textile industry supplier shows the breadth of our application areas, while at the same time the interest in our technology is always based on quality, flexibility and cost efficiency. 

The global outbreak of COVID-19 during the first quarter affects everything and everyone, including Impact Coatings. We are following the recommendations of the Swedish Public Health Authority and the Ministry of Foreign Affairs, which affect how we interact with customers, suppliers and other partners. We have strict rules that stipulate, among other things, that employees with symptoms may not come to the office, restrictions on internal and external travel, and are very restrictive when it comes to external visits. We encourage employees to work from home when possible. The Annual General Meeting on May 14 will take place as planned, but in a very limited form and with an expected low attendance to minimize the risk of spread of infection.

Our overall view is that Impact Coatings’ business continues relatively unhindered. The two mentioned system orders give us a satisfactory utilization in system manufacturing. We also do not see any current disruption in material flows from our suppliers. On the other hand, aftermarket sales to system customers and the coating services operation are somewhat affected by closed factories in some European countries.

Sales and development work with customers continues with some delay. East Asian companies, both in China and our development partner Hyundai in South Korea, have opened their operations after several weeks of closure. As we await travel restrictions to be lifted, the collaboration with Hyundai continues at a distance. Many companies in Europe are still completely closed and sales focus is on those that are still running. We are now seeing signs towards the end of April that some European companies are slowly resuming production and commercial activity, which is positive, but we expect travel restrictions within Europe for a while still.

The situation with COVID-19 is a challenge for our world and all industrial companies. I am proud of how Impact Coatings continues to deliver for our customers and shareholders during this difficult time, while also protecting our employees and business partners.

Torbjörn Sandberg
 

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

For more information contact:

Torbjörn Sandberg, CEO
Tel: +46 (0)768-43 43 76

Marie Dhayer Teikmans, CFO
Tel: +46 (0)70-812 71 96

E-mail: investors@impactcoatings.se

The information was delivered, via the contact persons named above, for publication on April 24, 2020, at 08:00 a.m. CEST.

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IMPACT COATINGS AB - INTERIM REPORT JANUARY-MARCH 2020

Impact Coatings’ annual report for 2019 (in Swedish) is attached, and is available for download from the company’s website at www.impactcoatings.com/finansiella-rapporter-arkiv/.

For more information contact: 

Torbjörn Sandberg, CEO
Tel: +46 768 43 43 76 

Marie Dhayer Teikmans, CFO
Tel: +46 70 812 71 96

E-mail: investors@impactcoatings.se

The information was delivered, via the contact persons named above, for publication on April 16, 2020, at 10:00 a.m. CEST.

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Impact Coatings AB Årsredovisning för 2019

The German customer is a globally present provider of precision tools for the textile industry. The company has a total turnover of EUR 671 million.

For more information contact:

Torbjörn Sandberg, CEO
+46 768 43 43 76

Peter Högfeldt, VP Marketing
+46 708 87 44 34

E-mail: investors@impactcoatings.se
 

Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact persons named above, for publication on March 18, 2020, at 3:00 p.m. CET.

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In the Balance sheet (page 7), Machines and technical equipment (2019-12-31) should be 11 018 TSEK, Total Long term assets (2019-12-31) should be 20 574 TSEK, and Total assets (2019-12-31) should be 114 213 TSEK.

Machines and technical equipment (2018-12-31) should be 13 103 TSEK, Total Long term assets (2018-12-31) should be 23 904 TSEK, and Total assets (2018-12-31) should be 97 111 TSEK. 

The corrected year-end report 2019 is included as an appendix to this press release and can be retrieved on the company’s website at www.impactcoatings.com/finansiella-rapporter-arkiv/.

For more information contact:

Torbjörn Sandberg, CEO
Tel: +46 (0)768-43 43 76

Marie Dhayer Teikmans, CFO
Tel: +46 (0)70-812 71 96

E-mail: investors@impactcoatings.se

The information was delivered, via the contact persons named above, for publication on March 13, 2020, at 2:00 p.m. CET.

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IMPACT COATINGS AB - YEAR-END REPORT 2019