May 14, 2020 › wp-content › uploads › 2020 › ... · Fuel Cells (FC) Coating solutions...
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CEO Presentation Annual General Meeting May 14, 2020
Transcript of May 14, 2020 › wp-content › uploads › 2020 › ... · Fuel Cells (FC) Coating solutions...
Annual General Meeting ‒ May 14, 2020
CEO Presentation
Annual General MeetingMay 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 SandbergCEO, Impact Coatings AB
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
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
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)
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
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
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
other application areas
▪ Complements sales of equipment and system
solutions
▪ Supports R&D, prototype and pilot production
for fuel cell customers
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’ p
roven
com
petitiveness
Lo
wH
igh
“Invest in fuel cells for the future”
Time to multi-system sales
Fuel cells (FC)
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
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
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
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
Annual General Meeting ‒ May 14, 2020
Hyundai: new major shareholder and development partnerPress 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:
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 on development, and sales to Asian market
We will develop leading coating technologyfor metal bipolar plates for FCEVH2
Sales coordination and automotive industry credibility when approaching other customers
A mutually beneficial
development agreementMutual time-limited exclusivity on new technology that we develop together
Annual General Meeting ‒ May 14, 2020
Equity investment from Hyundai and Accendo CapitalDirected 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
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 0 0 0 0 2 061
Shareholder equity 96 120 54 001 102 005 64 324 101 987
Annual General Meeting ‒ May 14, 2020
Summary
▪ World-class PVD products and services in growing business areas
▪ Continued strategic focus on DMR – radomes and antennas new potential volume areas
▪ Well-positioned for the quickly evolving hydrogen and FC market
▪ Hyundai key development partner in FC coating solutions
▪ Strong, long-term shareholders Accendo Capital (12%) and Hyundai Motor Company (10%)
▪ 2019: record-high net revenue of SEK 49 million with work ongoing to improve order flow
▪ Q1 2020: important radome system order from Zanini Auto Group, and system order from
German textile industry supplier
▪ Limited COVID-19 effects for the company so far
