South Korea, Japan, Germany and other industrial nations are investing heavily in hydrogen technology, a complement to batteries, and in many ways a more comprehensive solution for electrification globally. Hydrogen energy is adopted for transportation, industry, stationary heat end power, and for many other areas. Both Sweden and South Korea have technology companies that are in the forefront of this technology development.
The MoU, which is non-binding and has no defined economic value, follows a Joint Development Agreement between Impact Coatings and Hyundai announced on October 30, 2019. The MoU strengthens the relationship between the two companies and holds important symbolic value in light of the strong diplomatic and economic relations between South Korea and Sweden, which celebrate 60 years of progress during 2019.
The signing ceremony took place during the visit to Seoul by the Swedish Prime Minister Stefan Löfven and the Minister for Foreign Trade Anna Hallberg, together with a large delegation of Swedish business leaders. Hyundai was represented by President Young Woon Kong of Hyundai Motor Group Strategy Planning Division, and Vice President Soon Chan Park of Hyundai Motor Fuel Cell Business Group. Attendees from Impact Coatings were Chairman of the Board Mark Shay and VP of Sales Will Wright.
“The partnership between Hyundai and Impact Coatings comes at an important time for hydrogen energy, with governments around the world announcing hydrogen roadmaps and market players competing to take the lead,” said Vice President Soon Chan Park of Hyundai Motor Fuel Cell Business Group. “I believe that the collaboration between our two companies will help vitalize technological exchange between Korea and Sweden.”
“Mirroring the strong ties between Sweden and South Korea over the past sixty years, Impact Coatings and Hyundai are jointly embarking on a journey to develop fuel cell coating and hydrogen energy technology. We are together focused on innovation and the migration to clean energy, not just in our two home countries but around the world,” said Mark Shay, Chairman of Impact Coatings.
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 December 18, 2019, at 11:00 a.m. CET.
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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 SIF Syafiq Johari, appointed by Hyundai Motor Company Torsten Rosell, own representation Mark Shay, Chairman of the Board
The AGM will be held in Linköping on May 14, 2020. The proposals of the nominating committee will be published in the invitation to the AGM and will be made available on the company web site, 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, 2020.
For more information, contact:
Peter Högfeldt, VP Marketing Tel: +46 708 87 44 34
The information was delivered, via the contact person named above, for publication on November 22, 2019, at 11:30 a.m. CET.
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För det fall någon av de tre största aktieägarna väljer att avstå från sin rätt att utse representant i valberedningen, övergår rätten till den aktieägare som därnäst har det största aktieinnehavet. Valberedningen består av:
Kai Tavakka, ordförande, utsedd av Accendo Capital SICAV SIF Syafiq Johari, utsedd av Hyundai Motor Company Torsten Rosell, egen representation Mark Shay, styrelseordförande
Impact Coatings årsstämma kommer att äga rum i Linköping den 14 maj 2020. Valberedningens förslag publiceras i samband med kallelsen till årsstämman samt kommer att finnas tillgängliga på bolagets hemsida, www.impactcoatings.com.
Aktieägare som önskar lämna förslag till valberedningen kan göra det per e-post till investors@impactcoatings.se senast den 1 februari 2020.
För mer information kontakta:
Informationen lämnades, genom ovanstående kontaktpersoners försorg, för offentliggörande den 22 november 2019, kl. 11:30 CET.
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På den extra bolagsstämman beslutades:
Att godkänna den av styrelsen beslutade riktade nyemission till Hyundai Motor Company och Accendo Capital SICAV SIF.
Att utöka antalet styrelseledamöter från fem till sex i enlighet med styrelsens förslag, samt att till ny styrelseledamot välja Dr. Sukhwan Yun.
Att den nya styrelseledamoten ska ha rätt till ett årligt arvode om 180 000 kronor vilket motsvarar det arvode som övriga styrelseledamöter erhåller.
Mark H. Shay, CFA Styrelseordförande Tel. +46 765 96 62 38 eller e-mail: mark@accendofund.com
Denna information är sådan information som Impact Coatings AB (publ) är skyldigt att offentliggöra enligt EUs marknadsmissbruksförordning. Informationen lämnades, genom ovanstående kontaktpersons försorg, för offentliggörande den 22 november 2019, kl. 11:00 CET.
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The extraordinary general meeting decided:
To approve the directed new share issue to Hyundai Motor Company and Accendo Capital SICAV SIF, as resolved by the board of directors.
To increase the number of board members from five to six, as proposed by the board of directors, and to elect Dr. Sukhwan Yun as a new board member.
That the new board member shall be entitled to an annual remuneration of SEK 180 000 corresponding to the remuneration received by other members of the board of directors.
Mark H. Shay, CFA Chairman of the Board Tel. +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 November 22, 2019, at 11:00 a.m. CET.
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Torbjörn Sandberg, CEO Tel: +46 768 43 43 76
Peter Högfeldt, VP Marketing Tel: +46 70 887 44 34
The information was delivered, via the contact persons named above, for publication on November 7, 2019, at 10:00 a.m. CET.
Torbjörn Sandberg, VD Tel: +46 768 43 43 76
Informationen lämnades, genom ovanstående kontaktpersoners försorg, för offentliggörande den 7 november 2019, kl. 10:00 CET.
· Nettoomsättningen uppgick till 3 003 TSEK (3 569) · Rörelseintäkter uppgick till 7 394 TSEK (6 681) · Rörelseresultatet uppgick till -7 878 TSEK (-8 757) · Resultat efter finansnetto uppgick till -7 883 TSEK (-8 759) · Kassaflödet uppgick till -6 479 TSEK (7 037) · Värdet av orderboken för beläggningssystem vid periodens slut uppgick till 2 144 TEUR
FINANSIELL UTVECKLING JANUARI-SEPTEMBER 2019
· Nettoomsättningen uppgick till 28 509 TSEK (12 624) · Rörelseintäkter uppgick till 31 297 TSEK (16 469) · Rörelseresultatet uppgick till -22 383 TSEK (-28 385) · Resultat efter finansnetto uppgick till -22 397 TSEK (-28 406) · Kassaflödet uppgick till -27 577 TSEK (-8 427) · Kassalikviditeten uppgick till 86% (168)
VÄSENTLIGA HÄNDELSER UNDER TREDJE KVARTALET 2019
· Inga väsentliga händelser inträffade under perioden
VÄSENTLIGA HÄNDELSER EFTER PERIODENS SLUT
· Kallelse till extra bolagsstämma den 22 november i Stockholm · Gemensamt utvecklingsavtal tecknat med Hyundai Motor Company · Styrelsen har beslutat om riktad nyemission till Hyundai Motor Company och Accendo Capital, och Hyundai Motor Company nominerar styrelseledamot, båda villkorade av extra bolagsstämmas godkännande
VD-KOMMENTAR
Den 30 oktober gick Impact Coatings och Hyundai Motor Company (”Hyundai”) ut med nyheten att bolagen har tecknat ett gemensamt utvecklingsavtal (“JDA”) kring beläggningsteknik för bränsleceller. Vidare meddelades att Impact Coatings styrelse har beslutat om en riktad nyemission till Hyundai och Accendo Capital till en kurspremie. Hyundai har även nominerat Sukhwan Yun att ingå i Impact Coatings styrelse. Emissionen och val av styrelseledamot förutsätter godkännande av en extra bolagsstämma som kommer att hållas den 22 november 2019 i Stockholm.
Hyundai är en av världens ledande biltillverkare och i framkant gällande utveckling av bränslecellsfordon. Utvecklingsavtalet är ett bevis på att Impact Coatings beläggningslösningar för bränsleceller är världsledande. Elektrifiering av fordonsflottan med vätgas och bränsleceller pågår mycket snabbare i vår omvärld än vad vi märker i Sverige och våra beläggningslösningar behövs nu för utveckling och lågserietillverkning. Avtalet stärker möjligheten att sälja beläggningssystem till Hyundai i framtiden men innebär ingen garanti. De två parterna får under en bestämd tidsperiod exklusivitet på teknik som utvecklas gemensamt inom ramarna för avtalet.
Nyemissionen till Hyundai medför att företaget får en industriell ägare som tillför trovärdighet, industriell kunskap och distributionskanaler som når de snabbt växande globala marknaderna för bränsleceller och fordonsteknologi. Hyundais ägarandel efter den riktade emissionen uppgår till 10,4% och Accendo Capitals ägarandel till 12,0%. Styrelsen ser Accendo Capitals fortsatta aktiva engagemang och kapitalbidrag till Impact Coatings som nödvändiga för bolagets framtida framgång och samarbete med industriella ägaren Hyundai.
För tredje kvartalet landar nettoomsättningen på 3 003 TSEK, vilket inkluderar intäkter från beläggningstjänster, eftermarknadsförsäljning och hyresintäkt från en beläggningsmaskin. Beläggningsmaskinen till Shouhang skeppades i augusti. Installation och redovisning av intäkter förväntas ske under Q4 då kundens lokaler förväntas vara färdigställda.
Ingen ny maskinorder har kommit under perioden och orderingången för beläggningssystem har inte utvecklats som vi har förutspått. Marknadsdynamiken är olika inom olika applikationsområden. Vi ser till exempel ett stort intresse från fordonsindustrin för ett flertal applikationer, men upplever samtidigt att beslutsprocesser tar lång tid p g a flera beslutsnivåer i värdekedjan samt godkännande av komplex ny teknologi. Inom andra områden har åtminstone en förväntad affär skjutits fram där kunden pekar på en osäkerhet kring den tyska konjunkturen.
Även om ordrar dröjer ser vi fortsatt ett starkt intresse för våra erbjudanden i linje med bolagets uttalade strategi. Vi har en pipeline med potentiella systemaffärer, mestadels europeiska företag inom D/M/R-segmenten (dekorativt, metallisering och reflektorer). Marknadsbearbetningen intensifieras i dessa segment.
Inom bränsleceller (FC) har vi en stark tilltro till vårt erbjudande, att våra beläggningar och produktionslösningar bäst uppfyller de krav som ställs för effektiva bränsleceller med lång livslängd. Samarbetet med Hyundai stärker oss i denna uppfattning. Dagens behov inom fordonssegmentet finns huvudsakligen inom utveckling och lågserietillverkning, vilket väl uppfylls av bolagets befintliga produkter och tjänster.
Beläggningsverksamheten har under året fortsatt att utvecklats positivt. Beläggning av bränslecellsplattor utgör en betydande del och vi fortsätter att betrakta beläggningstjänster till bränslecellsmarknaden som ett framtida tillväxtsegment. Vi ser även en ökande intäkt under året från beläggningstjänster inom segmenten dekorativa beläggningar och elektriska kontakter.
Efter mitt tillträde som VD förra året har vi fört samtal med Tokyobaserade Optorun i syfte att utvärdera de distributörs- och leverantörsavtal som slöts mellan bolagen 2017. Vi har gemensamt beslutat att avsluta det formella samarbetet då det som tidigare meddelats inte givit förväntade resultat för någon av parterna. Bolagen har en fortsatt bra relation och vi kan komma att samarbeta i specifika fall framöver. Tills vidare hanteras försäljningen i den ostasiatiska regionen med vår egen personal. Vi stärker också vår närvaro i regionen genom samarbetet med Hyundai, vilket involverar etablering av kontor i Sydkorea.
Inträdet av Hyundai som industriell ägare och samarbetspartner kommer att innebära en ny fas för Impact Coatings, förutsatt att den extra bolagsstämman 22 november godkänner styrelsens beslut. Jag ser fram emot samarbetet och den större tyngd som det kommer att ge bolaget i allt vi företar oss framöver.
Torbjörn Sandberg
FINANSIELL UTVECKLING
Tredje kvartalet 2019 Nettoomsättningen för tredje kvartalet 2019 uppgick till 3 003 TSEK (3 569) vilket inkluderar intäkter från beläggningstjänster, eftermarknadsförsäljning och hyresintäkt från en beläggningsmaskin.
Leveransen av ordern till Beijing Shouhang Resources Saving Co., Ltd. är inte inkluderad i nettoomsättningen eftersom installationen av systemet i Kina har försenats något jämfört med det ursprungliga schemat, men planeras slutföras under det fjärde kvartalet 2019. Impact Coatings har erhållit betalningar som uppgår till 90% av ordervärdet. Det skeppade systemet hade ömsesidigt överenskomna ändringar jämfört med den ursprungliga konfigurationen, och den slutliga betalningen ska därför förhandlas i samband med installationen och slutacceptans (upp till 10% av ordervärdet).
Rörelseintäkterna uppgick till 7 394 TSEK (6 681).
Rörelsekostnaderna ökade till -15 271 TSEK (-15 437). Vi har under tredje kvartalet implementerat ett program för att minska kostnader i linje med vårt effektiviseringsarbete. De största effekterna kommer från restriktiv nyanställning och minskade konsultkostnader inom IT och försäljning och kommer att ha full effekt från oktober. Vi har kunnat dra ner hela kostnadsbasen för löpande kostnader (d v s personalkostnader och övriga externa kostnader) med 10% utan att ha tagit några engångskostnader.
Finansnettot blev -5 TSEK (-2). Resultatet blev -7 883 TSEK (-8 759).
Januari-september 2019
Nettoomsättningen för perioden januari-september 2019 uppgick till 28 509 TSEK och ökade jämfört med föregående år (12 624). Rörelseintäkterna uppgick till 31 297 TSEK (16 469).
Rörelsekostnaderna ökade till -53 680 TSEK (-44 854). Ökningen härleds till råvaror till de tre färdigställda beläggningssystemen, samt högre personalkostnader och högre avskrivningar. Finansnettot blev -14 TSEK (-21). Resultatet blev -22 397 TSEK (-28 406). Någon uppskjuten skattefordran har, i likhet med tidigare finansiella rapporter, inte redovisats.
Finansiell ställning och likviditet Likvida medel uppgick vid periodens slut till 19 092 TSEK (56 959). Räntebärande skulder uppgick vid periodens slut till 0 TSEK (0). Kassalikviditeten uppgick till 86% (168). Kassaflöde från den löpande verksamheten för perioden januari-september 2019 uppgick till -27 405 TSEK (-8 357). Från investeringsverksamheten uppgick kassaflödet till -172 TSEK (0). Kassaflödet från finansieringsverksamheten uppgick till 0 TSEK (-70). Totalt kassaflöde för perioden var -27 577 TSEK (-8 427).
Impact Coatings har erhållit betalning mot en Irrevocable Letter of Credit motsvarande 40% av ordervärdet från Beijing Shouhang Resources Saving Co., Ltd., vilket påverkar kassaflödet positivt under tredje kvartalet. Slutbetalningar från Henan Yuqing Power Co., Ltd. och från den schweiziska klocktillverkaren är också redovisade under tredje kvartalet.
Efter den riktade emissionen till Hyundai och Accendo Capital bedöms bolaget att ha likviditet som behövs åtminstone för de kommande 12 månaderna, förutsatt att den extra bolagsstämman godkänner emissionen.
Orderbok beläggningssystem Värdet på orderboken för beläggningssystem var vid periodens utgång 2 144 TEUR, varav hela ordervärdet för Beijing Shouhang Resources Saving Co., Ltd. fortfarande ingår.
Orderboken för beläggningssystem exkluderar löpande aktivitet kring eftermarknad och beläggningstjänster, men inkluderar avtalade hyresintäkter från beläggningssystem.
HÄNDELSER UNDER TREDJE KVARTALET
Ett beläggningssystem skeppades i början av augusti till Beijing Shouhang Resources Saving Co., Ltd., som är en börsnoterad kinesisk koncern aktiv inom förnybar energiteknik. Affären offentliggjordes i februari 2019 och rör ett INLINECOATER-system för utveckling och produktion av PVD-beläggningar. Planerad installation i Kina har i väntan på att kunden färdigställer sina lokaler skjutits fram något och planeras ske under fjärde kvartalet.
Verksamheten i övrigt har fokuserat på att producera och leverera enligt befintliga systemaffärer, löpande produktion av beläggningstjänster, service av kundmaskiner, samt eftermarknadsförsäljning. Försäljningsarbetet för kommande affärer har fortsatt med hög intensitet och en begränsad grupp har under slutet av perioden varit involverad i diskussionerna med Hyundai som konkretiserats efter periodens slut.
HÄNDELSER EFTER PERIODENS SLUT
Den 30 oktober meddelades att bolaget har tecknat ett gemensamt utvecklingsavtal med Hyundai Motor Company kring beläggningsteknologi för bipolära flödesplattor av metall, en nyckelkomponent för vätgasdrivna bränslecellsfordon.
Den 30 oktober meddelades vidare att styrelsen har beslutat om en riktad nyemission om 5 400 000 aktier till Hyundai Motor Company och 3 857 143 nya aktier till Accendo Capital. Hyundai har nominerat Sukhwan Yun att ingå i Impact Coatings styrelse. Emissionen och val av styrelseledamot förutsätter godkännande av en extra bolagsstämma som kommer att hållas den 22 november 2019 i Stockholm.
REVISORNS GRANSKNING OCH REDOVISNINGSPRINCIPER
Denna delårsrapport har inte varit föremål för revisorns granskning.
KOMMANDE RAPPORTTILLFÄLLEN
Bokslutskommuniké för 2019 14 februari 2020
Delårsrapport första kvartalet 2020 24 april 2020
Bolagsstämma 2020 14 maj 2020
Besök också gärna Redeye Technology Day 2019 i Stockholm den 20 november, där Impact Coatings kommer att presentera bolaget (sänds även via webcast).
Torbjörn Sandberg, VD Tel: 0768-43 43 76
Marie Dhayer Teikmans, CFO Tel: 070-812 71 96
Denna delårsrapport återfinns under www.impactcoatings.com/finansiella-rapporter-arkiv/ på bolagets hemsida.
Denna information är sådan information som Impact Coatings AB (publ) är skyldigt att offentliggöra enligt EU:s marknadsmissbruksförordning. Informationen lämnades, genom ovanstående kontaktpersoners försorg, för offentliggörande den 1 november 2019, kl. 08:00 CET.
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· Net revenue amounted to SEK 3 003 thousand (3 569) · Total income amounted to SEK 7 394 thousand (6 681) · Operating profit amounted to SEK -7 878 thousand (-8 757) · Operating profit after financial items amounted to SEK -7 883 thousand (-8 759) · Cash flow amounted to SEK -6 479 thousand (7 037) · Order backlog at period end amounted to EUR 2 144 thousand
FINANCIAL RESULTS JANUARY-SEPTEMBER 2019
· Net revenue amounted to SEK 28 509 thousand (12 624) · Total income amounted to SEK 31 297 thousand (16 469) · Operating profit amounted to SEK -22 383 thousand (-28 385) · Operating profit after financial items amounted to SEK -22 397 thousand (-28 406) · Cash flow amounted to SEK -27 577 thousand (-8 427) · Equity-to-assets ratio amounted to 86% (168)
SIGNIFICANT EVENTS THIRD QUARTER 2019
· No significant events occurred during the period
SIGNIFICANT EVENTS AFTER THE PERIOD
· Notice convening an extraordinary general meeting of shareholders on 22 November 2019 in Stockholm · Entered into Joint Development Agreement with Hyundai Motor Company · Resolution by the board of directors on directed new share issue to Hyundai Motor Company and Accendo Capital, and nomination of board member by Hyundai, both subject to approval by an EGM
CEO’S COMMENTARY
On October 30, Impact Coatings and Hyundai Motor Company (“Hyundai”) announced that the companies have entered into a Joint Development Agreement (“JDA”) for the development of coating technology for fuel cells. It was also announced that the board of directors of Impact Coatings has resolved on a directed equity issue to Hyundai and Accendo Capital at a price premium. Hyundai has in addition nominated Sukhwan Yun to the Impact Coatings board of directors. The equity issue and board election are subject to approval by an extraordinary general meeting of shareholders to be convened 22 November 2019 in Stockholm.
Hyundai is one of the world’s leading auto manufacturers and at the forefront of fuel cell vehicle development. The JDA is evidence that Impact Coatings has world-leading coating solutions for fuel cells. Vehicle electrification using hydrogen and fuel cells is happening much faster in the rest of the world than what we are aware of in Sweden, and our coating solutions are needed now for development and small series production. The JDA increases the likelihood of our selling coating systems to Hyundai in the future but provides no such guarantee. The two parties have for a fixed period of time exclusivity on the technology developed jointly within the framework of the agreement.
The equity issue to Hyundai gives the company an industrial owner that provides credibility, industrial know-how, and distribution channels that reach the rapidly growing global markets for fuel cells and automotive technology. Hyundai’s ownership stake after the directed issue amounts to 10.4% and Accendo Capital’s stake amounts to 12.0%. The board of directors views Accendo Capital’s continued active engagement and capital investment in Impact Coatings as necessary for the company’s future success and its cooperation with industrial shareholder Hyundai.
Third quarter net sales amounted to SEK 3 003 thousand, which includes revenues from coating services, after-market sales, and rental income from a coating machine. The coating machine for Shouhang was shipped during August. Installation and revenue recognition are anticipated during Q4 when the customer’s premises are expected to be completed.
No new machine orders were received during the period and the order flow for coating systems has not developed as we predicted. The market dynamics vary among different application areas. We see, for example, a strong interest from the auto industry for several different applications, but at the same time experience that decision processes take time due to multiple decision levels in the value chain as well as the approval process of complex new technologies. In other areas, one anticipated order has been delayed due to the customer’s uncertainty about the German economic cycle.
Even if orders take time, we see a continued strong interest in our offerings in line with the company’s stated strategy. We have a pipeline of potential system sales, mostly to European companies in the D/M/R segment (decorative, metallization and reflectors). Market development is being intensified in these segments.
Within fuel cells (FC) we have a strong belief in our offering, and that our coatings and production solutions best meet the requirements for efficient fuel cells with a long life span. The cooperation with Hyundai confirms this view. Current needs within the automotive sector are largely in development and small series production, which the company’s existing products and services fulfil well.
The coating services business has continued its positive development during the year. Coating of fuel cells comprises a significant part of the business and we continue to view coating services in the fuel cells market as a future growth segment. We also see increased revenues during the year from coating services in decorative coatings and electrical contacts.
Since my start as CEO last year, we have held new discussions with Tokyo-based Optorun about the distribution and supply agreement the companies initiated in 2017. We have together decided to end the formal cooperation since it has not, as previously described, yielded the desired results for either party. The companies continue to have a good relationship and it is possible we will work together on specific cases in the future. Until further notice, our own personnel will handle sales in the region. We also strengthen our presence in the region through our cooperation with Hyundai, which will involve establishing an office in South Korea.
Hyundai’s entrance as an industrial owner and development partner heralds the start of a new phase for Impact Coatings, provided the extraordinary general meeting of shareholders approves the board’s decision on November 22. I look forward to the cooperation and the greater strength it will give the company in everything we do in the future.
FINANCIAL RESULTS
Third quarter 2019
Net revenue for the third quarter 2019 amounted to SEK 3 003 thousand (3 569) which includes revenue from Coating services, after sales and lease revenue.
The delivery of the coating system to Beijing Shouhang Resources Saving Co., Ltd. is not included. The installation of the system in China has been somewhat delayed compared to the original schedule but is planned to be finalized during the fourth quarter 2019. Impact Coatings has received payments amounting to 90% of the order value of about SEK 11.2 million. The shipped system had mutually agreed modifications compared to the original configuration, and the final payment is therefore to be negotiated in conjunction with final acceptance (up to 10% of the order value).
Total income amounted to SEK 7 394 thousand (6 681).
Operating expenses amounted to SEK -15 271 thousand (-15 437). During the third quarter, we implemented a cost reduction program in line with our efficiency improvement work. The main effects come from restrictive new hiring and reduced IT and sales consulting costs, with have full effect from October. We have been able to reduce the entire cost base for running costs (i.e., personnel costs and other external costs) by 10% without incurring any one-off costs.
Financial items amounted to SEK -5 thousand (-2). Operating profit after financial items amounted to SEK -7 616 thousand (-8 759).
January-September 2019
Net revenue for the period January-September 2019 amounted to SEK 28 509 thousand and increased compared to the previous year (12 624). Total income amounted to SEK 31 297 thousand (16 469).
Operating expenses amounted to SEK -53 680 thousand (-44 854). The increase is driven by raw materials for the three coating systems delivered, as well as higher personnel costs and depreciation. Financial items amounted to SEK -14 thousand (-21). Operating profit after financial items amounted to SEK -22 397 thousand (-28 406).
A provision for deferred tax assets has, in line with previous financial reporting, not been recognized.
Financial position and liquidity
Cash and liquid assets at period-end amounted to SEK 19 092 thousand (56 959). Interest-bearing debt at period-end amounted to SEK 0 (0). Equity-to-assets ratio amounted to 86% (168).
Cash flow from operations during January-September amounted to SEK -27 405 thousand (-8 357). Cash flow from investments amounted to SEK -172 thousand (0). Cash flow from financing activities amounted to SEK 0 thousand (-70). Total cash flow for the period was SEK -27 577 thousand (-8 427).
Impact Coatings has received payment against an Irrevocable Letter of Credit corresponding to 40% of the order value from Beijing Shouhang Resources Saving Co., Ltd., whose release had a positive effect on cash flow during the third quarter. The final payments from Henan Yuqing Power Co., Ltd. and from the Swiss watch manufacturer are also recognized during the third quarter.
Following the directed share issue to Hyundai and Accendo Capital, the company will have the liquidity needed to continue operations at least for the next 12 months, under the condition that the share issue is approved at the EGM.
Order book coating systems
The value of the order backlog for coating machines was at the end of the period EUR 2 144 thousand, which still includes the whole amount for the order to Beijing Shouhang Resources Saving Co., Ltd.
The order backlog for coating machines excludes recurring activities from after-market sales and coating services, but includes agreed rental income for coating machines.
EVENTS DURING THE THIRD QUARTER
A coating system was shipped in early August to Beijing Shouhang Resources Saving Co., Ltd., a listed Chinese company active in renewable energy technology. The deal was announced in February 2019 and concerns an INLINECOATER system for the development and production of PVD coatings. Planned installation in China is pending the completion of the customer’s premises and is scheduled to take place during the fourth quarter.
The operation has generally focused on producing and delivering existing system orders, continuous production of coating services, maintenance of customer machines, and aftermarket sales. Sales work for upcoming business has continued with high intensity, and a limited group has at the end of the period been involved in the discussions with Hyundai, which has been completed after the end of the period.
EVENTS AFTER PERIOD END
On October 30, it was announced that the company has entered into a Joint Development Agreement with Hyundai Motor Company regarding cooperation in the development of coating technology for metal bipolar plates, a key component of hydrogen fuel cell electric vehicles.
On October 30, it was further announced that the board of directors has resolved on a directed new share issue of 5,400,000 shares to Hyundai Motor Company and 3,857,143 new shares to Accendo Capital. Hyundai has nominated Sukhwan Yun to the board of Impact Coating. The issue and board member election require the approval of an extraordinary general meeting of shareholders, which will be held on November 22, 2019 in Stockholm.
AUDIT AND ACCOUNTING POLICIES
This interim report has not been subject to auditor review.
UPCOMING FINANCIAL EVENTS
Year-end report 2019 14 February 2020
Interim report for the first quarter 2020 24 April 2020
Annual general meeting 2020 14 May 2020
Visit also Redeye Technology Day 2019 in Stockholm on November 20, where Impact Coatings will present the company (also broadcast as a webcast).
Torbjörn Sandberg, CEO Tel: +46 (0)768-43 43 76
Marie Dhayer Teikmans, CFO Tel: +46 (0)70-812 71 96
This interim report can be retrieved at www.impactcoatings.com/finansiella-rapporter-arkiv/ on the company’s website.
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 November 1, 2019, at 8:00 a.m. CET.
Right to attend
Shareholders who wish to attend the EGM shall both be registered in the shareholder registry maintained by Euroclear Sweden AB by Saturday, 16 November 2019 (please note that since the record date is on a Saturday, shareholders must be registered in the share register on Friday, 15 November 2019, at the latest), and notify attendance to the company latest Monday, 18 November 2019 via e-mail to anmalan@impactcoatings.se or post to Impact Coatings AB (publ), Westmansgatan 29G, 582 16 Linköping.
Notification of attendance shall include name, person- or organization number, shareholdings, address, telephone number, and information in the case of representatives. If participation is by proxy, relevant credentials must be submitted before the EGM. Credentials may not be more than one year old unless a longer period of validity (maximum five years) is stated in the credential documentation. If the shareholder represented by proxy is a legal entity, the representative must present proof of registration or other documentation that confirms the signatory’s authority. A proxy form will be available from the company’s website www.impactcoatings.com no later than three weeks prior to the EGM and will be sent to those shareholders who request it and provide their mailing address.
Shareholders that have chosen to register shares with a custodian must, in order to participate in the EGM, temporarily re-register their shares under their own name with Euroclear Sweden AB. Since the record date is on Saturday 16 November 2019, such registration must be effected by Friday 15 November 2019, at the latest. In order for this to occur, a request for such re-registration must reach the custodian well in advance of the date above.
Proposed agenda
Proposals for resolution
Item 7 – Approval of the board of directors’ resolution on a directed share issue
The board of directors proposes that the EGM approves the board of directors’ resolution of October 29, 2019 to issue a maximum of 9 257 143 new shares, entailing an increase in the share capital of not more than SEK 1 157 142,875 with deviation from the shareholders’ preferential rights under the following terms and conditions.
The CEO or any person appointed by the board of directors shall be authorised to make minor adjustments to the resolution above should it be required in conjunction with registration with the Swedish Companies Registration Office or Euroclear Sweden AB.
A resolution in accordance with item 7 requires that shareholders representing no less than two-thirds of the votes cast as well as the shares represented at the EGM approve the resolution.
Item 8 – Resolution of number of board members and election of new board member
The board of directors proposes that the board shall be increased from five members to six members and that Sukhwan Yun, nominated by Hyundai, is elected as a new member of the board of directors.
Sukhwan Yun is a Senior Manager in the Corporate Venture Capital (CVC) Team of Hyundai Motor Company. Previously, he was a Senior Research Engineer at Hyundai’s Fuel Cell Research Lab and was in charge of developing fuel cell electric vehicles (Tucson ix35 and NEXO). Dr. Yun earned B.Sc. and Ph.D. degrees in Chemical Engineering from the Illinois Institute of Technology in Chicago. His doctoral research focused on polymer electrolyte membranes for energy conversion in fuel cell and battery applications. As Senior Manager of CVC, Dr. Yun is responsible for sourcing and executing high-potential investments in the automotive and ancillary industries on behalf of Hyundai and its subsidiary companies. Dr. Yun currently has no corporate board assignments and owns no shares in Impact Coatings.
Item 9 – Resolution on remuneration to the board
Conditional on the EGM electing Sukhwan Yun as a new member of the board of directors in accordance with item 8 above, the board of directors proposes that Sukhwan Yun shall receive an annual remuneration of SEK 180 000 corresponding to the remuneration received by other members of the board of directors.
Available documents
The complete proposals, as well as other documents in accordance with the Swedish Companies Act, will be available on the company’s website www.impactcoatings.com and on the Company’s office at Westmansgatan 29G in Linköping, no later than two weeks prior to the EGM. Copies will be sent to shareholders who so request and provide their mailing address.
______________
Linköping, October 2019 Impact Coatings AB (publ) The board of directors
Mark H. Shay, CFA Chairman Phone: +46 765 96 62 38, or e-mail: mark@accendofund.com
The information was delivered, via the contact person named above, for publication on October 30, 2019, at 00:29 a.m. CET.
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