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Annual General Meeting ‒ May 14, 2020
Annual General Meeting ‒ May 14, 2020
”The evolution towards a hydrogen society is moving faster than we expected just a year ago.”
Torbjörn Sandberg CEO, Impact Coatings AB
CEO Presentation Annual General Meeting May 14, 2020 Annual - - PowerPoint PPT Presentation
CEO Presentation Annual General Meeting May 14, 2020 Annual - - PowerPoint PPT Presentation
CEO Presentation Annual General Meeting May 14, 2020 Annual General Meeting May 14, 2020 The evolution towards a hydrogen society is moving faster than we expected just a year ago. Torbjrn Sandberg CEO, Impact Coatings AB Annual
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Annual General Meeting ‒ May 14, 2020
▪ Positioning among fuel cell industry leaders ▪ Joint Development Agreement (JDA) with Hyundai ▪ First customer delivery of INLINECOATER™FC ▪ Record-high net revenue of SEK 49 million ▪ Shipment of four coating systems (whereof one final acceptance in January 2020) ▪ System order from Beijing Shouhang Resources Saving Co., Ltd. ▪ System order from Scandinavian eyewear manufacturer ▪ Order flow did not reach expectations, but strong sales pipeline remains ▪ Directed equity issue to Hyundai and Accendo Capital provided gross liquidity SEK 65 million
MoU signing in Seoul, December 18
2019 in brief
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Annual General Meeting ‒ May 14, 2020
Q1 2020
▪ System order from Zanini Auto Group (Spain) for radomes – radar-transparent emblems ▪ System order from German supplier of precision tools to the global textile industry ▪ Order book at period-end for planned delivery 2020: EUR 2.1 million COVID-19 implications ▪ Following recommendations of the Swedish Public Health Authority and Ministry of Foreign Affairs ▪ System manufacturing largely unaffected, Q1 orders provide satisfactory utilization ▪ Aftermarket sales and Coating Services somewhat affected by closed customer factories ▪ Joint-development work with partner Hyundai delayed by South Korea closure and travel restrictions ▪ Sales and marketing activities delayed due to closed customers and travel restrictions
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Annual General Meeting ‒ May 14, 2020
Supplier of world-class PVD technology for environmentally friendly surface coatings in growing business areas. Many customers are active in the automotive industry, and the company is strategically positioned in the international market for hydrogen-powered fuel cell vehicles.
Impact Coatings AB
▪ Founded: 1997 ▪ Head office: Linköping, Sweden ▪ Employees: 32 ▪ Listed on Nasdaq Stockholm, First North Growth Market (IMPC)
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Annual General Meeting ‒ May 14, 2020
PVD (physical vapor deposition)
▪ Thin film vacuum coating technology ▪ Environmentally-friendly, replacing wet coating processes ▪ Wide and growing industrial use ▪ Unlimited range of materials and coating properties
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Annual General Meeting ‒ May 14, 2020
Coating equipment
▪ INLINECOATER™ – high coating quality, versatility, quick and easy maintenance, and possibility to integrate into production flows
System solutions
▪ Equipment, coating technology, coating materials, and after sales ▪ MAXPHASE™ – proprietary coatings for electrical applications, e.g., fuel cells and electrical connectors
World-class PVD products and services
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Annual General Meeting ‒ May 14, 2020
World-class PVD products and services
Coating Services
▪ Full-service in-house coating operation ▪ Customers within fuel cells, decorative, electrical contacts, medical technology, and
- ther application areas
▪ Complements sales of equipment and system solutions ▪ Supports R&D, prototype and pilot production for fuel cell customers
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Annual General Meeting ‒ May 14, 2020
Company strategy: We aim to build a solid business within DMR today, with a large future potential in fuel cells
“Build stable core
business in DMR today”
Decorative (D) Metallization (M) Reflectors (R)
Impact Coatings’ proven competitiveness Low High “Invest in fuel cells for the future” Time to multi-system sales
Fuel cells (FC)
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Annual General Meeting ‒ May 14, 2020
Decorative, Metallization and Reflectors (DMR)
Decorative coatings
▪ System solutions for superior quality, color consistency and scratch resistance for metal consumer products (eyewear, watches, etc.) ▪ Strong track-record, and preferred supplier status, at leading European manufacturers of high-quality products with own brands
Plastic metallization and reflector coatings
▪ Cost-efficient production solutions for metallized plastic ▪ Integrating PVD equipment with plastic injection molding in compact automated production cells ▪ European and Chinese automotive component suppliers using Impact Coatings’ solutions
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Annual General Meeting ‒ May 14, 2020
Radomes and antennas – emerging metallization applications
New potential high-volume business opportunities driven by safety and autonomous driving systems. Impact Coatings’ plastic metallization solutions provide outstanding cost-efficiency and quality control.
Radomes
▪ Radar transparent emblems/covers for vehicle radar, e.g. for ADAS – advance driver assistance systems ▪ Important system order from Zanini Auto Group (Spain) for radomes in Q1 2020
Plastic antennas
▪ Automotive, IoT and 5G ▪ Several component suppliers developing new plastic antenna solutions
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Annual General Meeting ‒ May 14, 2020
Fuel Cells (FC)
▪ Coating solutions provider for metal bipolar plates, a key component in hydrogen fuel cells ▪ Ceramic MAXPHASE™ - durable performance and low cost for LT-PEMFC used for fuel cell electric vehicles Independent third-party performance verification by ZBT GmbH completed Q1 2020 ▪ INLINECOATER™FC equipment ▪ Coating Services for R&D and pre-series production
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Annual General Meeting ‒ May 14, 2020
FC market driven by heavy transportation
▪ Accelerated evolution of a hydrogen society driven by large industrial countries (Japan, South Korea, China, Germany) ▪ European Commission initiated Clean Hydrogen Alliance, to promote green hydrogen production in Europe ▪ Aggressive production plans for FC vehicles by many OEMs, primarily for heavy transportation (trucks, busses)
Impact Coatings’ market
▪ Automotive OEMs and FC suppliers – development and volume production solutions for new vehicle platforms ▪ Automotive and other FC niche applications – faster introduction ▪ Strategy to work with FC industry leaders and companies with sound finances and management
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Annual General Meeting ‒ May 14, 2020
Hyundai: new major shareholder and development partner
Press releases October 30, 2019
"
Hyundai aims to produce 700,000 fuel-cell systems annually by 2030 including 500,000 units for FCEVs
Hyundai Motor Group’s FCEV Vision 2030 (December 2018)
Headquarters in Seoul, South Korea One of the world’s five largest automotive manufacturers Sold more than 4.5 million vehicles globally in 2018 More than 110,000 employees worldwide At the forefront of hydrogen fuel cell electric vehicle (FCEV) development. Hyundai Motor Group:
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Annual General Meeting ‒ May 14, 2020
Joint Development Agreement (JDA) with Hyundai
Automotive and fuel cell industry leadership World class PVD coating expertise
Establish office in South Korea, focused
- n development, and sales to Asian market
We will develop leading coating technology for metal bipolar plates for FCEV
H2
Sales coordination and automotive industry credibility when approaching other customers
A mutually beneficial development agreement
Mutual time-limited exclusivity on new technology that we develop together
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Annual General Meeting ‒ May 14, 2020
Equity investment from Hyundai and Accendo Capital
Directed share issue end of 2019
▪ SEK 38 million gross proceeds, 10.4% post-transaction ownership ▪
- Dr. Sukhwan Yun elected to the board of directors
▪ Industrial owner that adds credibility, industrial know-how, and distribution channels ▪ SEK 27 million gross proceeds, 12.0% post-transaction ownership ▪ Largest owner since December 2017 (pre-transaction: 5.6% ownership) ▪ Dedicated long-term financial owner
" "
Accendo Capital continues to demonstrate its long- term commitment and is instrumental in the company’s strategic progress and strong governance
Torbjörn Sandberg, CEO, Impact Coatings
Our investment in these innovative companies will reduce the production cost of FCEVs…
Youngcho Chi, President and Chief Innovation Officer, Hyundai Motor Group
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Annual General Meeting ‒ May 14, 2020
Financial results 2019 and Q1 2020
Financials (SEK thousands) Q1 2020 Q1 2019 FY 2019 FY 2018 FY 2017 Net revenue 5 023 2 947 49 084 20 194 25 014 Total income 6 574 6 452 39 366 30 609 30 418 Operating profit (EBIT)
- 5 883
- 10 320
- 26 368
- 37 568
- 30 111
Net income
- 5 885
- 10 323
- 26 387
- 37 593
- 29 887
Cash flow from operations
- 4 851
- 8 685
- 31 781
- 13 320
- 43 802
Cash and liquid assets 73 934 37 984 78 785 46 669 65 386 Interest bearing debt 2 061 Shareholder equity 96 120 54 001 102 005 64 324 101 987
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Annual General Meeting ‒ May 14, 2020