FINANCIAL RESULTS FULL YEAR 2021

• Net sales amounted to SEK 57,198 thousand (39,515)
• Change of work in progress amounted to SEK -5,357 thousand (14,175) 
• Total revenue amounted to SEK 54,549 thousand (54,355)
• Operating profit amounted to SEK -32,083 thousand (-22,970)
• Operating profit after financial items amounted to SEK -32,092 thousand (-22,975)
• Cash flow amounted to SEK 79,835 thousand (-29,153)
• Liquidity ratio amounted to 1,124% (343)
• Order backlog for coating systems at period end amounted to EUR 0 thousand (1,645)
• No dividend is proposed

FINANCIAL RESULTS FOURTH QUARTER 2021

• Net sales amounted to SEK 28,642 thousand (20,044)
• Change of work in progress amounted to SEK -5,347 thousand (8,929) 
• Total revenue amounted to SEK 25,055 thousand (29,078)
• Operating profit amounted to SEK -187 thousand (-5,243)
• Operating profit after financial items amounted to SEK -188 thousand (-5,246)
• Cash flow amounted to SEK -8,602 thousand (-6,553)

SIGNIFICANT EVENTS FOURTH QUARTER 2021

• No significant events1) occurred during the period

SIGNIFICANT EVENTS AFTER THE PERIOD

• No significant events1) have occurred after the end of the period

1) Significant events refer to events that comprise insider information and shall be made public via press release.

CEO’s COMMENTARY

2021 marked the highest-ever levels of annual sales and total revenues for Impact Coatings. Both system sales and Coating Services contributed strongly. We delivered according to plan all coating systems on order during the fourth quarter of the year and Coating Services generated sharply higher sales over the full year. The operating result reflects the offensive strategic initiatives that the company started in 2021.

As we enter 2022, we see a continued strong order inflow for Coating Services, while irregularity in new system orders has resulted in a momentarily empty order book. One explanation is component shortages in the automotive industry affecting forecasting and delaying new projects. Several system sales discussions are in progress, and we are during this period using production resources for assembly of coating systems for internal use to help the company expand in multiple dimensions.

Impact Coatings has established a clear strategic direction to meet the real market needs in the hydrogen and fuel cell sector. It involves an increased focus on our services offering and capitalizing on the company’s globally unique expertise within coating technology. In parallel, we are developing the next generation, larger coating system for fuel cell plates and are preparing for the production of a greater number of systems for our own Coating Services facilities and for customers around the world.

The transition away from combustion engines is driving the development of the fuel cell industry. The value chain is forming, where new players and long-time automotive industrial companies will find their roles and evaluate various technical solutions. Despite aggressive volume forecasts, many companies are therefore waiting to initiate capital investments and are focusing to a great degree on buying services. Impact Coatings’ ability to deliver both Coating Services and production technology for high-volume manufacturing – while at the same time being a development partner that makes a difference for fuel cell system performance – makes the company a unique and influential supplier. The services market also gives the company an opportunity to ally itself with strategic customers already during their development stage.

We see the demand for Coating Services both in the consistently increasing order inflow and in our ongoing discussions with customers about their future needs. The fourth quarter was another strong quarter for Coating Services, although with somewhat lower sequential sales vs. the third quarter, largely due to production delays among certain customers. Sales for Coating Services over the full year amounted to SEK 11,386 thousand, an increase of 61% vs. 2020. To meet the market demand for Coating Services, we will increase the capacity both in Linköping and through geographic expansion, where the implementation of a first coating center in China has started with estimated commissioning in the second half of 2022.

In Linköping, coating operations for fuel cell plates are moving to new premises and will become automated. The new production hall, which will also serve as a demo center for potential customers, is expected to be completed during the first quarter of 2022. Here, we also assemble the first unit of our next generation coating system – a machine type that can be used both in our own facilities and delivered to customers for high-volume production.

During the fourth quarter, we completed the final delivery and invoicing of three coating systems. Symbio received the first production machine for fuel cell coatings in Europe. We also delivered two coating systems for metallization of radomes for automotive radar applications, to HELLA MINTH in China and to the HELLA Group’s subsidiary in Slovenia, which received its second Impact Coatings system in less than a year.

We continue to develop system technology and coating processes for hydrogen fuel cells as well as for automotive safety. Much of the development is driven independently, but an increasing part is also conducted in cooperation with strategic partners and customers.

Impact Coatings’ Seoul office has been up and running for just over a year now. The joint development with Hyundai continues, with daily interaction between our technical expert on-site and Hyundai’s R&D department. The INLINECOATER R&D system that we delivered to Hyundai during spring 2021 is invaluable for ongoing development activities within both fuel cells and electrolysis. Being on location in Korea with both technical expertise and sales personnel makes possible our establishment in Hyundai’s value chain and gives rise to productive relationships there and with other customers in the region.

We are also building a team and a professional structure for growth. At the start of the new year, our German colleague Stefan Dreger started as President EMEA, Hydrogen Solutions. Stefan comes to us most recently from the automotive giant Robert Bosch GmbH, where he worked as Senior Sales Manager in the hydrogen solutions business area. Since November 2021, Bengt Rosengren has been our new VP Operations, with 30 years of industrial experience from a range of companies including Ericsson. Stefan and Bengt will be important for Impact Coatings’ development, and I extend to them both a warm welcome.

Impact Coatings turns 25 during 2022. Although we remain a young company with our best years ahead of us, we have established a unique position in industry as a PVD coatings specialist offering materials, processes and production technology tailored to our customers’ needs. Our expertise in growing application areas, such as hydrogen fuel cells, electrolysis, and automotive safety, will drive innovation and the transformation to a safe and sustainable society during 2022 and for many years to come.

Torbjörn Sandberg, CEO 

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