Impact Coatings is pleased to announce that Stefan Dreger has joined the company in the new role of President EMEA, Hydrogen Solutions. Stefan’s responsibilities will encompass sales leadership and business development with a clear goal to accelerate Impact Coatings’ revenue growth within the Fuel Cell and Electrolysis segments in the EMEA region. Focus will be to further expand the company’s customer base and execute a partner strategy, as well as contribute to the company’s marketing and business strategies. Stefan comes to Impact Coatings from Robert Bosch GmbH, where his most recent role was Senior Sales Manager for Hydrogen Solutions.

Stefan brings more than ten years of sales, strategic marketing, and business development experience to Impact Coatings, with four of those years in the fuel cell ecosystem. Prior to joining Impact Coatings, he gained expertise in growing and leading cross functional international acquisition & project teams. Stefan is a graduate of Hochschule Ulm/Neu-Ulm with a diploma in Industrial Engineering.

“Stefan is an outstanding addition to Impact Coatings, as he brings deep experience from the automotive industry and knows what it takes to deliver customer success. As Impact Coatings continues its rapid growth and focus across the EMEA region, we expect Stefan’s sales and leadership skills, and his background in building strong customer relationships, to accelerate Impact Coatings’ growth. We are thrilled to have him on board,” said Torbjörn Sandberg, CEO.

“I am excited to join Impact Coatings and look forward to working with our talented teams to continue to build on the solid foundation developed over the past decades. From my perspective, Impact Coatings is perfectly positioned to help customers transform their business towards clean and sustainable solutions, not least in the automotive industry. I look forward to helping Impact Coatings accelerate towards its future goals,” said Stefan Dreger, newly appointed President EMEA, Hydrogen Solutions at Impact Coatings.

As of November 15, Bengt Rosengren has been appointed Vice President Operations at Impact Coatings. Bengt has 30 years of international experience and has a proven track record in production, sales, project management, business strategy and business development. He has worked for Ericsson, Sensys Gatso Group and Arriva Sweden.

Bengt will be based in Linköping and report to CEO Torbjörn Sandberg. Henrik Åkeson, who previously managed operations, has left Impact Coatings to pursue new opportunities. We wish Henrik the very best and thank him for four great years with the company.

“Henrik has been instrumental in transforming Impact Coatings into an industrialized and commercialized company and has contributed to some of the most important milestones we have achieved. Thanks to the fact that Bengt has worked as a consultant for Impact Coatings in 2018, before stepping into the role as VP Operations, he had a head start and has picked up from Henrik from day one. We are happy to have Bengt and his international experience and expertise onboard for this next leg of our commercial journey,” said Torbjörn Sandberg, CEO.

“I’m excited to join Impact Coatings. Since I have worked with the company previously, I know the capacity of the people working here, and of the solutions that we provide. I am also excited to be part of the accelerating journey to transition society towards a safe and sustainable future with the help of Impact Coatings’ environmentally friendly PVD coating technologies. It’s a privilege to join both a great team and a great cause,” said Bengt Rosengren, new VP Operations.

Just one week after Bengt Rosengren’s appointment, Impact Coatings decided to further increase in-house production capacity in Linköping. The premises are, as of the beginning of December, being upgraded to increase efficiency and capacity with an automated production line ready for operation in 2022.

“To meet customer demand, we are increasing our Coating Services capacity and adding system assembly space to our Linköping site. The timing could not be better with Bengt starting his new role,” said Torbjörn Sandberg.

FINANCIAL RESULTS THIRD QUARTER 2021

• Net sales amounted to SEK 4,043 thousand (9,432)
• Change of work in progress amounted to SEK 8,433 thousand (-687)
• Total revenue amounted to SEK 12,554 thousand (8,976)
• Operating profit amounted to SEK -9,202 thousand (-5,539)
• Operating profit after financial items amounted to SEK -9,206 thousand (-5,539)
• Cash flow amounted to SEK -18,444 thousand (-15,450)
• Liquidity ratio amounted to 577% (301)
• Order backlog at period end amounted to EUR 2,570 thousand (3,025)

FINANCIAL RESULTS JANUARY-SEPTEMBER 2021

• Net sales amounted to SEK 28,556 thousand (19,471)
• Change of work in progress amounted to SEK -10 thousand (5,246)
• Total revenue amounted to SEK 29,494 thousand (25,277)
• Operating profit amounted to SEK -31,896 thousand (-17,727)
• Operating profit after financial items amounted to SEK -31,903 thousand (-17,730)
• Cash flow amounted to SEK 88,437 thousand (-22,600)
• Liquidity ratio amounted to 577% (301)

SIGNIFICANT EVENTS SECOND QUARTER 2021

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

SIGNIFICANT EVENTS AFTER THE PERIOD

• No significant events have occurred after the end of the period

CEO’s COMMENTARY

The highlight of the period was a system order from Symbio, the first European system order and a sign of strength in the fuel cell segment. Symbio is, since 2019, a joint venture owned equally by the French automotive industry giants Faurecia and Michelin, with the stated goal of together becoming a global leader in hydrogen-powered mobility.

Michelin had already initiated development work with Impact Coatings when they in 2014 first invested in Symbio. The fuel cell manufacturer has since then been a key customer of our Coating Services business and we have seen significantly increasing volumes over the past year. Their decision to invest now in their first own coating system and in-house production is in line with our own strategy for helping customers grow and validates the technical performance and cost advantages of our solution.

Three system deliveries are planned for the fourth quarter: to Symbio in France, to HELLA in Slovenia, and to HELLA MINTH in China. The latter machine is now planned to be shipped from Linköping during October-November, a few weeks later than initially planned.

During the year, we have expanded our customer base within Coating Services in line with our strategy, which has contributed to continuously improving sales. Despite the summer holiday period for both our own team and our customers, during the third quarter Coating Services generated nearly the same revenue as in the previous quarter. Revenues for the year-to-date period already exceed full year 2020 revenues, and sales appear strong for the remainder of the year. As mentioned in the previous quarterly report, we will install an industrial robot in Coating Services to achieve higher production efficiency and increased competence in automation. The automated production cell for fuel cell coatings is expected to be complete at the start of next year.

During the period, we participated in two exhibitions related to hydrogen and fuel cells, in South Korea and Germany – two countries with fast-growing industrial hydrogen ecosystems and where Impact Coatings is located and is strengthening our presence. The recruiting process is complete for the President – EMEA role with a base in Germany and sales to the European hydrogen industry as the primary focus. Our new colleague will join the company January 1 and will be further introduced at that time.

I attended the conference and industry exhibition “f-cell” in Stuttgart during September, and in conjunction also met with customers and development partners in Central Europe. Our ability to now visit customers and welcome them to Linköping is a significant and welcome change. The activity level at our facilities and in industry generally is at an entirely different level now compared to during the pandemic.

The ongoing global wave of national hydrogen strategies and the enormous, planned investments in green hydrogen production, storage, and transport, are impressive dynamics of our market. There is an emerging global consensus that electrification using hydrogen is a necessary complement to electrical grids and battery technologies.

At the same time, the market for producers of fuel cell plates and fuel cell systems is, with periods of both acceleration and delays. Application development with evolving requirements is ongoing in parallel with the expansion of production capacity. System manufacturers, above all, are willing to work closely with suppliers during the buildup of this new industry. Impact Coatings’ strength is that today and in line with our core strategy for the future, we can supply production solutions for the hydrogen and fuel cell industries that are both cost-effective and flexible.

By offering clean coating technology, coating systems and services that support innovation and the transformation to a safe and sustainable society, Impact Coatings is a company that makes a difference.

Torbjörn Sandberg, CEO

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

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.