An independent accounting investigation of the period January 2016-June 2018, conducted by PWC at the request of the Impact Coatings board of directors, has reached the preliminary conclusion that a substantial portion of travel-related and out-of-pocket expense reimbursement claims by former CEO Henrik Ljungcrantz are not business-related and/or lack required supporting documentation.
An analysis by a separate and independent firm has found similar improper handling of expenses during 2012-2015. Periods prior to 2012 have not been considered. Henrik Ljungcrantz was CEO of Impact Coatings during the period 2002-2014, and again during the period May 2017-May 2018.
Pending further investigation and based on preliminary data, it is reasonable to expect approximately SEK 1-3 million in improper expense reimbursements to be confirmed for the period 2012-2018, plus approximately SEK 1 million in costs for the investigation itself, all of which the company will seek to recover.
The board of directors has, after meeting with Henrik Ljungcrantz today, resolved to terminate his employment with immediate effect. He will after today not receive further severance payments described in the company’s 27 May 2018 announcement.
The board of directors will submit the final investigation report with supporting documentation to the Swedish Economic Crime Authority.
The board of directors will during the coming weeks call shareholders to an extraordinary general meeting whose purpose will be the replacement of the company auditor.
The company will file corrective documentation with the Swedish Tax Agency to adjust value added tax (VAT) amounts and corporate expenses for the relevant time periods. Relevant income statement and balance sheet adjustments will be communicated in conjunction with Q3 2018 financial reporting or as soon as is practical.
“Impact Coatings employees and company leadership must adhere to the highest ethical standards and abide by company expense reporting and reimbursement policies, as well as applicable law. The board of directors is following the ongoing investigation closely and will do its utmost to recover on behalf of shareholders any capital that has been improperly paid out, as well as the costs associated with the investigation and necessary corrective actions. The board and management are now fully focused on continuing Impact Coatings’ journey toward industrialization and sustainable commercial success,” said Mark Shay, Chairman.
For more information, contact:Mark H. Shay, CFAChairman of the BoardTel: +46 765 96 62 38 or e-mail: mark@accendofund.com
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 24 July 2018, 12:20 pm.
———————————————————————————
The ordered coating machine will be integrated into a fully automatic production cell for injection molding and metallization of plastic components. The companies have an existing development cooperation. A production cell at Varioplast, with a coating machine from Impact Coatings, produces components for Volkswagen since 2014.
“It is very encouraging that Varioplast has chosen to order an additional coating machine from us,” said Petter Carlfjord, Sales Director at Impact Coatings. “It shows both that the customer is satisfied with us as a supplier and that our integrated production concept for injection molding and metallization of plastic components is successful.”
Delivery of the coating machine is planned for the beginning of 2019.
For more information contact:Peter Högfeldt, VP Marketing+46 708 87 44 34peter.hogfeldt@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 person named above, for publication on July 13, 2018, at 1:00 p.m. CET.
———————————————————–
China Hydrogen Energy
In October 2016, CHE entered into a commercial agreement with Impact Coatings for the purchase of 10 INLINECOATER™FC machines. CHE paid a deposit of EUR 240 000 in November 2016.
As reported in a press release dated September 25, 2017, CHE had communicated a delay to the order, due to a delay in the construction of its first production facility. Impact Coatings, as described in the Q1 report and in the materials presented at the 2018 Annual General Meeting, assessed the CHE order as still viable based on periodic discussions with the customer. The primary reason given to Impact Coatings for the delay was the ongoing discussions between CHE and a possible acquirer of a majority stake in CHE.
Impact Coatings conducted an on-location management review in China during July to assess the situation and to determine the viability of the agreement.
The conclusion of the review is that the most prudent and realistic approach is to treat the order as no longer valid.
Huaqing Power Technology
In October 2017, Impact Coatings received an order from Huaqing for six INLINECOATER™FC machines to be delivered during 2018 and 2019, in pairs over the course of three deliveries.
Huaqing communicated a delay to Impact Coatings, which was described in a press release dated January 31, 2018. In good faith, Impact Coatings attempted to support Huaqing in moving forward with its overall fuel cell program development, with the intention of securing the conditions for order fulfillment, even if delayed.
The Impact Coatings on-location evaluation described above also verified the historical development of the Huaqing relationship and assessed the likelihood of order completion based on current facts.
The conclusion of the analysis is that the most prudent and realistic approach is to treat the order as no longer valid.
Financial statement effects
Two machines have been produced in connection with the above orders and carried at cost as accrued revenue, with a combined value of SEK 15 158 000. One unit will be used in Coating Services production for fuel cell customers. The other unit will be booked at cost to finished goods inventory and will be available for sale.
The Coating Services machine will be reclassified as a production asset with a value of SEK 7 579 000. Future revenues and profit generated using the production machine, as well as its carrying value, will be recognized per customary accounting rules.
The second machine allocated for future sale in the fuel cell production industry will be reclassified as finished goods inventory with a value of SEK 7 579 000. If the machine is sold for more than this value, revenue and profit will be recognized. If the machine is sold for less than this value, or if the company determines that an impairment is justified in the future, a loss will be recognized.
During 2016 and 2017, SEK 15 158 000 has been recognized as revenue for the two machines combined, reflecting cost to Impact Coatings and no profit. Because the bookings are equivalent to operating income (revenue) from capitalized production for own account, there will be no restatement of recognized revenue for these periods.
Since both machines have been booked at cost with no profit recognition, and as they are both deemed current with respect to market activity and commercial demands, no write-down or other value impairment is currently planned.
The described reclassifications have no effect on cash flow.
The financial effects described above have been reviewed by the company’s auditor and will be included in the Q3 2018 financial report and September 30, 2018 balance sheet.
Impact Coatings remains committed to advancing the fuel cell industry in China and globally.
For more information, contact:Torbjörn Sandberg, CEOTel: +46 768 43 43 76 or e-mail: torbjorn.sandberg@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 person named above, for publication on July 12, 2018, at 2:00 p.m. CET.
—————————————————————-
Impact Coatings has entered into an agreement with Redeye AB regarding the role of Certified Adviser. Redeye AB will be Certified Adviser from 1 July 2018. Until then, Remium will continue as Certified Adviser to the company.
For more information contact:Anders Nilsson, CFO+46 702 59 28 76anders.nilsson@impactcoatings.se
————————————————————-
In accordance with previous communications, Impact Coatings has delivered an INLINECOATER™M coating machine to the Chinese company Xin Point. Delivery was via air freight and the machine has been handed over to the customer in the Guangdong province in southern China. The coating machine, previously called InlineCoater™ 500, was ordered by Xin Point in October 2017 and will be used to produce decorative plastic components for the automotive industry. The customer has issued payment at delivery in accordance with the contract. Final acceptance and final payment will take place after installation of the equipment.
For more information, contact:Peter Högfeldt, VP MarketingTel: +46-13-35 95 01 or e-mail: peter.hogfeldt@impactcoatings.se
—————————————————————————————-
Torbjörn Sandberg who starts 28 May 2018 has been CEO for, among others, Sensys Gatso Group AB (publ), Birdstep Technology ASA (publ), Netadmin Systems, and ServiceFactory.
“Tobjörn Sandberg has achieved significant results in companies through both growth and restructuring. Torbjörn Sandberg has expertise in organizational development, business processes, sales strategy and capital markets. We welcome Torbjörn Sandberg and his leadership, which will secure the next phase in Impact Coatings’ development,” said Mark Shay, Chairman of the Board.
The target is to recruit a permanent CEO during this calendar year.
“I am pleased to join Impact Coatings during this important phase in the company’s journey from technology innovator to industrial supplier of world-class coating solutions for fuel cells, reflectors, radar emblems, and consumer products,” said Torbjörn Sandberg, continuing:
“The company has a strong team in Linköping, Japan and China. We can quickly establish sales and customer service continuity, as well as tune the organization to achieve the company’s significant potential.”
Impact Coatings founder and CEO Henrik Ljungcrantz is leaving the company on 27 May 2018 in accordance with his employment agreement. The agreed notice period and severance pay duration amount to 12 months.
“Dr. Ljungcrantz has pioneered PVD coating technology whose process and end-products contribute to a cleaner and more sustainable environment. For example, Ceramic MAXPHASE coating for metal bipolar plates in fuel cells has the potential to be a must-have component for industrial-scale fuel cell stack production. The board therefore wishes to thank Dr. Ljungcrantz for his unique and lasting contributions to Impact Coatings,” said Mark Shay.
“Our coating solutions are highly regarded across multiple industry segments. They are under evaluation or already in production at some of the world’s leading automotive suppliers, auto OEM’s, and consumer products companies,” said Mark Shay.
For more information, contact:
Mark H. Shay, CFAChairman of the BoardTel: +46 765 96 62 38 or e-mail: mark@accendofund.com
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 27 May 2018, 9:00 p.m. CET.
——————————————————————————
The AGM decided, among other items:
To approve the 2017 income statement and balance sheet as proposed by the board of directors.
To allocate the annual result according to the board of directors’ proposal, meaning that unrestricted shareholders’ equity of SEK 80 152 310.18 is carried forward.
Release from liability the board of directors and CEO.
A board of directors was elected comprising Mark Shay (Chairman), Jan-Eric Sundgren, Chrisian Sahlén, Lars-Gunnar Skötte and Tanja Vainio.
The nominating committee’s proposal of a new procedure for constituting the next nominating committee was approved.
Decision on new phrasing in the articles of incorporation § 8 where time of day regarding registration date is removed.
Decision on new phrasing in the articles of incorporation § 9, Annual general meeting as well as other shareholder meetings can in addition to Linköping be held in Stockholm.
Grant the board of directors authority to decide on the repurchase and transfer of company shares.
Grant the board of directors authority to decide on issuance of equity and/or options and/or convertible instruments.
Grant the board of directors authority to make minor adjustments regarding decisions of the AGM in conjunction with registration at the Swedish corporate registry (Bolagsverket) and Euroclear Sweden AB.
For more information, please contact:Henrik Ljungcrantz, CEOTel. +46-706-63 55 80, or e-mail henrik.ljungcrantz@impactcoatings.se.
———————————————————-
· Coating production to Michelin’s fuel cell manufacturing · Delayed delivery to Huaqing Power Technology (China)
FINANCIAL RESULTS FIRST QUARTER 2018
· Net sales amounted to SEK 7 141 thousand (18 451) · Operating profit amounted to SEK -6 102 thousand (-404) · Net income after financial items amounted to SEK -6 121 thousand (-406) · Cash flow amounted to SEK -3 766 thousand (-12 159) · Equity-to-assets ratio amounted to 88,9% (69,3)
CEO’S COMMENTARY
During the period, we have continued working on our intensified efforts primarily in the Chinese fuel cells market, but also in greater Asia, Europe and North America.
We see a continued strong interest in our offering and we receive increasing evidence that we have the best fuel cell coating on the market. This is based on verifications we receive from auto manufacturers that test our coatings.
Important European order Interest is greatest in the Chinese market and it is there things are moving quickest. We see, however, an increased interest even in the European market, highlighted by the order from Michelin regarding production of Ceramic MAXPHASE™-coatings on fuel cell plates for their fuel cell manufacturing. The Michelin order is small but important, giving us tailwinds in discussions with other players in Europe as well as Asia.
We also see a high interest from the European auto industry for our coating systems for vehicle reflectors.
Long lead times It takes time, however, for discussions and verifications to become concrete business deals. International auto manufacturers have lead times of five to seven years from the start of a new model development program to the start of production. In the Chinese market the time is shorter, but it involves in any case a couple of years.
The market suffers at times from long lead times to produce newly constructed metal plates for fuel cells, i.e., the plates that we coat. It can take four to twelve months from drawing board to delivery. Several producers of metal plates are addressing this problem and are working to reduce the lead times.
With respect to China, it has been relatively calm during the beginning of the year. It is normally difficult to close deals in China during the start of the year. The Chinese New Year falls in the middle of our first quarter, and causes a calm period both before and after.
Due to the above factors, we have not been able to report any larger order during the quarter. As we reported in January, we have even received certain delays to the delivery of coating systems to the Chinese fuel cell manufacturer Huaqing Power Technology.
Clearer business approach During the start of the year, we have worked on creating a clearer business approach with respect to our customers, to avoid negative surprises in new markets.
The approach entails that orders are not considered valid until pre-payment has been made, a Letter of Credit is issued, or the payment in some other way has been secured. Orders shall include only those coating systems meant for delivery near-term and for which customers have verified payment through pre-payment or where the payment is otherwise secured.
Demo center and sales initiatives During the period, we have begun our initiatives on marketing and sales, including development of a demo center.
The planned work toward creating a representative demo center in Linköping has begun. We are building two machines, one to demonstrate coating of fuel cell plates and one for vehicle reflectors. The machines can also be delivered to customers in the event a fast turnaround is needed.
We have during the period strengthened the marketability of our offering and begun recruiting personnel to strengthen our sales capability. We have even streamlined our branding strategy and henceforth will market all of our coating machines under the product family name INLINECOATER™ and our coating processes under the product family name MAXPHASE™.
Our partner and distributor Optorun is intensifying its work to achieve the goals of our agreement. The Japanese company has during the quarter initiated a recruiting process to further strengthen the sales team and thereby increase sales of our coating systems.
With these actions and activities in place, we see a bright future ahead.
Linköping 2018-04-20Henrik Ljungcrantz, CEO Impact Coatings
Net sales during the period amounted to SEK 7 141 thousand (18 451). Operating expenses amounted to SEK -13 243 thousand (18 855). Operating profit before depreciation and other operating expenses amounted to SEK -6 102 thousand (-404). Operating profit before tax amounted to SEK -6 121 thousand (-406). Cash flow amounted to SEK -3 766 thousand (-12 159).
As in previous years’ reporting, no provision for deferred tax assets has been made.
Financial position and liquidityLiquid assets amounted to SEK 61 620 thousand (9 988) at the end of the period. Work in progress not yet invoiced (accrued revenue) amounted to SEK 12 983 thousand (10 280) at the end of the period. Corresponding invoiced, not completed revenue (deferred revenue) amounted to SEK 9 778 thousand (1 842).
Equity-to-assets ratio amounted to 88,9% (69,3).
Cash flow from operations during the period amounted to SEK -3 696 thousand (-12 159).
Cash flow from financing amounted to SEK -70 thousand (0). Total cash flow for the period was SEK -3 766 thousand (-12 159).
SALES AND MARKET
In conjunction with the fuel cell conference FC Expo held in Tokyo in February, we launched INLINECOATER™FC for the Asian market. The coating system is significantly improved in terms of productivity and is optimized for coating fuel cell plates in volume production. The launch will continue during the Hannover Messe to be held 23-27 April 2018.
The cooperation with Optorun continues with work ongoing for existing as well as new potential customers. With support from Impact Coatings in Sweden, customer offerings are being shaped that meet market demands of advanced coating systems.
During the recent quarter, Optorun has started the recruiting process to further strengthen the sales team in order to intensify sales of Impact Coatings coating systems, and achieve the agreed goals in the cooperation agreement. Optorun has recently completed a successful IPO and is now listed on the Japanese stock exchange.
Below we describe the status in the market segments where Impact Coatings is primarily focusing: Fuel Cells and Reflectors. The company also is working actively in Metallization/Decorative coatings and Electrical contacts.
As a step toward focusing the marketing of coating systems and coatings, partly new product names were launched during the quarter. All of the company’s coating systems now fall under the product family name INLINECOATER™.
Fuel cellsHuaqing Power Technology has had to delay their start of production. As announced earlier via press release, this implies the delivery of the agreed coating system is pushed forward.
China Hydrogen Energy, to which our deliveries have been delayed, is in negotiations with a larger player that is planning to take a majority ownership stake in the company. These negotiations are ongoing, and when they are complete a new timeplan for production and delivery of Impact Coatings coating systems will be agreed.
Telos Auto, with which Impact Coatings has a cooperation agreement, is planning to migrate to metal fuel cell plates. Impact Coatings is now coating plates from Telos Auto on a testing basis for verification of Ceramic MAXPHASE™ in their fuel cell system.
Impact Coatings has delivered coated plates in accordance with a disclosed order to a leading East Asian auto manufacturer. The time plan is aggressive and all parties involved are working together to evaluate the coating as quickly as possible.
Fuel cell production for Michelin has started at Impact Coatings’ facility in Linköping. The work comprises the starting phase of a process through which Michelin will be able to deliver its first fuel cell system to customers. Volumes are expected to increase over time.
Symbio FCell has also received coatings from Impact Coatings during the period.
The number of potential customers has increased following the FC Expo in Tokyo, which is the world’s largest fuel cell conference. At the moment, we are following up contacts with prospective customers through their visiting Impact Coatings in Linköping, and production for evaluation of coatings is starting. Several of these potential customers need scalable production lines for coatings within the near future.
Reflectors Impact Coatings sees a continued increasing interest from the automotive industry in our coating system for reflectors. Above all, the possibility of integrating Impact Coatings’ system in the production flow is generating interest. The company is negotiating with several reflector producers, which in turn deliver to auto manufacturers.
Impact Coatings has during the period developed a new application regarding coating of radar emblems. Radar emblems are a fundamental component in an application that is integrated in cars to increase safety through avoidance of pedestrians, obstacles, or other vehicles. The radar is placed behind the emblem in the car’s grill and the emblem therefore needs to have a special transparent coating. Impact Coatings has a competitive technology to coat radar emblems, and the market and customers are principally the same as for reflectors.
RESEARCH & DEVELOPMENT
Impact Coatings’ strategy is to be the leading player in its chosen segments. R&D is therefore a priority.
We continue therefore our work with improving the efficiency of the coatings required for delivering world-leading niche products. Additional projects have therefore commenced to develop the next generation of coatings and coating systems.
Impact Coatings’ development work is also focusing on supporting the manufacturing and ”productification” of the coating machines. There is also an emphasis on supporting the sales organization through focused development and testing within the prioritized market segments, Reflectors and Fuel Cells.
PRODUCTION
The coating operations that take place in Impact Coatings’ facilities in Linköping have an increased responsibility now to support sales of coating systems. It is a clear advantage to be able to deliver customer samples quickly and with high quality, support the customer’s development and deliver pre-production smaller series, not least within the Fuel Cells market segment.
The company also continues to develop pure subcontracting services in the different market segments. Coating of fuel cell plates is now the largest application and is expected to increase during 2018 and 2019. Among others, production of coatings of fuel cell plates for Michelin has started during the quarter.
The coating machine being produced for Borit NV and developed under the EuroStar project Pro-FC will be ready for testing during April. The machine will first run at Impact Coatings’ facilities to tune the coating processes. Afterwards, we expect the machine to be moved to Borit’s own production environment during the third quarter this year.
Production of the coating machine for Xin Point is proceeding according to plan and will in June be shipped from Sweden to Xin Point in China.
Production of two demonstration machines has begun.
Linköping 2018-04-20 Henrik LjungcrantzCEO
AUDITOR’S REVIEW AND ACCOUNTING PRINCIPLES
This interim report has not been subject to auditor review.
UPCOMING FINANCIAL EVENTS
Annual general meeting: 17 May 2018
Interim report for the second quarter 2018: 17 August 2018
Interim report for the third quarter 2018: 26 October 2018
Year-end report for 2018: 15 February 2019
For more information contact: Henrik Ljungcrantz, CEO Tel: +46 70-663 55 80
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 20 April 2018, 08:00 CET.
———————————————————————————————-
FINANCIAL RESULTS FOURTH QUARTER 2017
· Net sales amounted to SEK 2 220 thousand (9 480) · Operating profit amount to SEK -11 095 thousand (-2 316) · Profit after net financial items amounted to SEK -10 581 thousand (-2 944) · Cash flow amounted to SEK 63 180 thousand (-4 452) · Equity-to-assets ratio amounted to 85,4 % (66,6)
SIGNIFICANT EVENTS AFTER PERIOD-END
· Delayed delivery to Chinese Huaqing Power Technology · First production order for Ceramic MAXPHASE™-coatings for fuel cell plates from French Michelin’s fuel cell manufacturing
The past year has been eventful for Impact Coatings both in terms of new business and agreements primarily in Asia, but also with respect to the company’s development in order to develop and manage a growing market.
I December, we completed a capital increase that provided ca SEK 109,4 million before issuance costs. The company’s liquidity is thefore good and the capital will be used to finance our intensified efforts primarily in the fuel cell market in China but also greater Asia, Europe, and North America.
Through the capital increase, Impact Coatings welcomed a new main shareholder in Accendo Capital, a Luxembourg-registered equities fund that invests in listed small cap companies and takes an active owner role. Accendo has a strong track record of long-term investments since its inception in 2008.
This, in combination with growth in the interest for Impact Coatings and our offering, help us believe in a bright future. Our strategic focus on coatings for fuel cell plates and the fact that we have a competitive offering have been demonstrated through our order agreements.
Strong market for fuel cells and reflectorsThe market for fuel cells in China is growing quickly following the Chinese governemtns support to companies and local authorities that produce heavier hydrogen-powered vehicles such as busses and light trucks. We are in contact with many players in China that have either already established production facilities for fuel cells, or are in the process of building such plants.
China continues to be a strong market, but during late 2017 we also saw an increasing interest in Europe. The interest is tied to our coating technology for fuel cell plates, but above all in our market vertical Reflectors. Our breakthrough order with Iskra Mehanizmi (Slovenia) has become a reference case that is gaining recognition. Interest in the coating system within the automotive industry has therefore increased and we are now in discussions with a couple of Tier 1 suppliers that are currently evaluating our coatings.
Development costs affect profitsThough the interest in our offering is significant and we periodically sign orders, it takes time before revenues from new orders show in our financial results. That, in combination with costs we have absorbed for shifting to a more industrialized production to meet increased demand, have impacted profit during the year.
Delays and deliveriesDeliveries to some of our largest customers in China have been subject to delays. This has tied up capital, which has had a negative effect on liquidity.
With respect to our order in the fuel cell market in China from autumn 2016 – a binding agreement with China Hydrogen Energy (CHE) worth over SEK 100 million for the delivery of eight to ten coating machines over three years – there are delays. CHE has informed us that the construction of their first production facility has been delayed and therefore shift the first deliveries from us to 2018.
Similar conditions apply with respect to the order of six coating machines from the Chinese fuel cell manufacturer Huaqing Power Technology, from October 2017, with a total order value of SEK 50 million and deliveries planned for 2018 and 2019. As Huaqing is not ready with other parts of its production line, the deliveries of the first two coating machines, which were planned for the first quarter of the year, have been pushed back.
Work with our first order under the distribution agreement with Japanese Optorun continues as planned. The order, which represents a breakthrough on the Chinese market for the market vertical Metallization, is for a coating machine for the Chinese supplier to the automotive industry, Xin Point, with an order value of SEK 8 million for delivery during 2018.
Important partners for local presenceDuring the year, we have strengthened our presence in Asia and hired our first local sales representative in China, who started at the beginning of September and now is driving sales activities on the fast-growing Chinese market.
Cooperating with Optorun is an important step forward for us on the Asian market. We are actively working to find additional local partners as local presence is important to build up this market. An example of this work is the order we received from Xin Point.
Outsourced manufacturingTo meet the increasing demand for our coating technology, we have during the year invested in industrializing and modularizing the production process. This has generated costs during 2017, but means that we have created an effective and more flexible production where we, among other things, can leverage sub-suppliers in a completely different way to increase quickly our production capacity. We will in addition begin producing sub-components at sub-suppliers during 2018 to speed up deliveries to the Asian market.
Linköping 2018-02-16
Henrik Ljungcrantz CEO Impact Coatings
Fourth quarter 2017
Net sales amounted to SEK 2 220 thousand (9 480). Operating costs amounted to SEK -13 826 thousand (-12 424). Operating profit before depreciation and other operating costs amounted to SEK -11 095 thousand (-2 316). Profit before tax amounted to SEK -10 581 thousand (-2 944). Cash flow amounted to SEK 63 180 thousand (-4 452).
Full year 2017
Net sales amounted to SEK 30 418 thousand (32 997). Operating costs increased to SEK -60 529 thousand (-39 910). Net financial items amounted to SEK 224 thousand (-5). Net income amounted to SEK -29 887 thousand (-6 917). Cash flow amounted to SEK 43 238 thousand (20 192) for the full year. The equity-to-assets ratio as of year-end was 85,4 % (66,6).
Capitalized development costs amounted to SEK 4 151 thousand (2 077).
Provisions for deferred tax assets, as in prior years’ accounting, have not been made.
Financial position and liquidity
Liquid assets at year-end amounted to SEK 65 386 thousand (22 147). Accrued revenues amounted to SEK 7,4 million (2,8) at year-end. Corresponding deferred revenues amounted to SEK 9,8 million (10,3).
Interest-bearing debt at year-end amounted to SEK 2 061 thousand (0). The equity-to-assets ratio amounted to 85,4 % (66,6).
Cash flow from operations during 2017 amounted to SEK -43 802 thousand (-7 383).
Cash flow from investment activities amounted to SEK -7 628 thousand (-1 998). Cash flow from financing activities amounted to SEK 84 668 thousand (29 572). Total cash flow for the year was SEK 43 238 (20 192).
The status in Impact Coatings’ market verticals is described in more detail below. Impact Coatings’ primary focus is on Fuel Cells and Reflectors, but the company is also actively working in the Electrical Contacts and Metallization/Decorative Coatings segments.
Fuel Cells
Electrification of the vehicle fleet is happening quickly. In our part of the world the change is mainly centered around battery-powered electric vehicles and hybrids. Nearly all auto manufacturers, above all those in Asia, are also developing hydrogen-powered electric cars that use fuel cells. Serial-produced fuel cell vehicles from Toyota, Honda, and Hyundai and prototype vehicles from other manufacturers are on the streets. Hyrdrogen-powered electric vehicles have many advantages, for example fast fueling and long range. The hydrogen car can more than battery-driven vehicles be used in the same way as today’s cars.
Impact Coatings has achieved a unique position in the fuel cell industry, above all for motor vehicles. In order to be inexpensive, metal bipolar plates are used in the fuel cells. Impact Coatings’ fuel cell coating – Ceramic MAXPHASE™- and a cost-effective coating technology best meet the automotive industry’s requirements of these critical components in the fuel cell. This has opened doors for the company at most of the world’s auto manufacturers. Ceramic MAXPHASE™ is now being evaluated for many of the cars that will be produced at the beginning of the next decade.
At the same time, plants are being built today in China for production of fuel cells, primarily for busses and light trucks. The Chinese government has in its five-year plan identified hydrogen fuel cells as a priority to help reduce air pollution in cities. The government is therefore financing a rapid build-up of fuel cell production and subsidizes hydrogen-powered busses, for example.
The developments in China give Impact Coatings substantial opportunity near-term to sell coating machines, with associated after-market. The company has so far signed agreements with China Hydrogen Energy (CHE) and Huaqing Power Technology regarding machines for coating fuel cells as well as delivery of coatings for the development of Telos Auto’s fuel cell system.
China is investing heavily in fuel cells, which has created fertile ground for many new local companies. The rapid growth is largely tied to the government and local authorities investing in the sector. As a consequence, we have noticed that projects can be delayed while these investments are pending. This has affected our machine deliveries, which have been delayed as a result.
Reflectors
Lighting in modern cars is becoming more and more advanced, and the number of lights has increased quickly. Headlamps today are advanced systems, often with moving parts. Inside the cabin, light is generated from hidden sources. Common to many of these lights is that they include reflectors formed of plastic with reflective metallic coatings. There are some thousands of PVD-systems active in the automotive industry used to metallize light reflectors, but they are too few and poorly equipped for the many small reflectors now demanded by auto manufacturers.
Impact Coatings’ coating system INLINECOATER™ R with accompanying reflective coating is optimal for automated production of today’s many small vehicle reflectors. A first system delivery, where PVD was integrated with plastic injection molding of vehicle reflectors, was to Iskra Mehanismi (Slovenia) during June 2017. With this reference case behind us, marketing in the Reflectors segment has intensified during 2017, which has led to several ongoing business prospects. As a next step, we will approach also the Asian and American automotive industries.
Electrical Contacts
Within the market vertical Electrical Contacts, the company offers coatings and production solutions for different types of electrical connectors. Primarily two coatings are marketed, Ultra MAXPHASE™ for extreme environments and Silver MAXPHASE™, which can replace gold plating on contacts. Sales in both segments are today primarily generated as services using the company’s own facilities.
Impact Coatings’ offering in the market vertical Metallization is similar to that in Reflectors. The company’s PVD system for metallization is integrated with plastic injection molding for cost-effective production of metallized plastic parts. The products are often decorative components for the auto industry. The company has delivered several systems to automotive components manufacturers in Europe, among them German A. Maier Präzision GmbH, delivered during Q1 2017.
2017 also saw a breakthrough in the Asian market. Chinese Xin Point, a supplier of automotive components with customers in Asia and North America, ordered one INLINECOATER™ system for metalllization of decorative plastic components. The coating machine will, among other things, be used for so-called seed layers, where the coating replaces the hazardous (to health and the environment) use of hexavalent chromium to coat plastic.
The phasing out of hexavalent chromium, also called hex-chrome or chromium-6, from manufacturing is driving the transition from wet chemistry plating of plastics to, among other methods, PVD-metallization.
Many of the PVD systems that Impact Coatings has delivered historically are used for decorative coatings of metal for various high-quality consumer products, for example eyeglasses and watches. Ongoing business prospects show a continued interest in the unique wear-resistant colored coatings and cost-effective production solutions that Impact Coatings offers.
Impact Coatings’ activities in research projects together with Uppsala University and Linköping University continue, specifically within material science with the FunMat project. The project should lead to increased understanding and knowledge of metal materials, pre-treatments and coating processes during fuel cell manufacturing.
Completion of a newly developed coating system, as part of the EuroStar project Pro-FC, has progressed during the latter part of the year.
During the period, focus has been on ramping up new machines, both with respect to the machines’ processing and quality. Factors such as productivity, efficiency, and reliability have been in focus. Testing and feedback have been an important part of the efforts. Coating targets and consumable materials have become more efficient.
We have made plans for how the company shall progress further in the different focus areas.
Comprehensive work has been performed during the year with respect to productification and modularization of the coating machines to facilitate more efficient production and outsourcing of production, in order to increase more flexibility in the production process.
Two INLINECOATER™ FC machines for fuel cell customers were produced during the autumn. One became ready for delivery during January 2018 and the other will be ready in March 2018.
The new coating system for fuel cell plates that will be delivered to Borit NV and that has been developed under the EuroStar project Pro-FC, has been delayed a few months and is expected to be finished during the spring 2018. In parallel, one INLINECOATER™ for metallization of plastic is being produced for Chinese Xin Point.
The organization for maintenance and support of customer machines changed during the year and was given a clearer focus, at the same time a review of the company’s after-market offering continued.
Coating on a subcontracting basis was done primarily for fuel cell customers, as well as in med tech, decorative coatings, and electromagnetic shielding.
The introduction of a new quality assurance system according to the automotive industry’s IATF 16949 standard for the whole company has progressed during the year and is now fully adopted into production for fuel cell coatings. Measurement of key metrics continues for one year before the certification process can begin, which is planned for 2018.
As Huaqing is not ready with the other parts of its production line, the delivery of the first two coating machines, which should have occurred during the first quarter this year, has been pushed back.
A first production order for the Ceramic MAXPHASE coating has been received from tire and automotive components manufacturer Michelin for SEK 0,2 million. The coating service will be provided from Impact Coatings’ facilities in Linköping, Sweden. The company has previously delivered coatings for Michelin’s fuel cell development. Demand from Michelin and the expected delivery volumes are expected to increase successively during 2018 and 2019 as production of fuel cells increases.
Linköping, Sweden 2018-02-16
Henrik LjungcrantzCEO
For more information, contact Henrik Ljungcrantz, tel. +46 70 663 55 80.
This year-end report has not been subject to review by the auditor.
Annual General Meeting 2018: 17 May 2018
Report for the first quarter 2018: 20 April 2018
Report for the second quarter 2018: 17 August 2018
Report for the third quarter 2018: 26 October 2018
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 16 February 2018, 08:00 CET.
———————————————————————–
· Value of initial order SEK 0.2M
· Important order in the European fuel cells market
Impact Coatings, which develops and sells world-leading technology for PVD-coatings of fuel cell plates and vehicle reflectors, has received its first production order for Ceramic MAXPHASE™ coatings from Michelin.
The French tire and auto components manufacturer is in a build-up phase in its fuel cell manufacturing initiative. Michelin manufactures fuel cell systems for trucks, busses, and automobiles and has selected coatings from Impact Coatings for its production.
Impact Coatings has previously delivered coatings for Michelin’s fuel cell development. Demand and delivered volumes are now expected to increase gradually during 2018 and 2019 while production of fuel cells increases.
A first order for Ceramic MAXPHASE coatings has been received for SEK 0.2M. The coating service will take place at Impact Coatings’ facilities in Linköping, Sweden.
”The cooperation with Michelin is very positive and an important sign that the European fuel cell market is ramping up. Michelin has approved and qualified our coating and is of the view that it has the best performance to increase fuel cell system efficiency,” said Impact Coatings CEO Henrik Ljungcrantz.
For more information, contact:Henrik Ljungcrantz, CEOTel: +46-70-663 55 80 or e-mail: henrik.ljungcrantz@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 person named above, for publication on 12 February 2018, 08:00 CET.
——————————————————
We use cookies to improve your user experience and to collect information about your visit. You can read more about our cookies and change your settings here. Read more
Cookies save information about how you use the website, data that can be reused. Read more
Necessary for the website to function.
Read more
These cookies are necessary for our website to function and therefore cannot be turned off. They are used, for example, when you set personal preferences, log in or fill out a form. You can set your browser to block or warn you about these cookies, but some parts of the website will not work then.
close-cookie-bar
wants-ec-cookies
wants-fc-cookies
wants-mc-cookies
wants-ac-cookies
For some features on our website.
These cookies make it possible to provide improved functionality and customization on our website. If you do not allow these cookies, some functions may not work correctly.
viewedOuibounceModal
Measures user patterns and creates statistics.
These cookies allow us to count the number of visits and traffic sources so that we can measure and improve our website. The information these cookies collect is completely anonymous. If you do not allow these cookies, we will not know when you have visited our website.
_ga_LWPJB5WV5Z
_ga
__hssc
__hssrc
__hstc
hubspotutk
_cfuvid