experience the future with pvd coatings...with pvd coatings ceo’s presentation annual general...

Annual General Meeting ‒ May 15, 2019

Experience the futurewith PVD coatings

CEO’s presentation

Annual General Meeting of Shareholders

Impact Coatings AB (publ)

May 15, 2019


Impact Coatings in brief

▪ Industrial technology supplier with 20+ years of experience in delivering

PVD thin film coating solutions

▪ We provide PVD systems, services, and after sales

▪ "IMPC" share listed on Nasdaq First North Stockholm with

market value ~SEK 225 million (May 2019)


Key business drivers

A sustainable world Global demand for luxury &

lifestyle products

New technologies and

applications

Fuel cells, eyewear, watches, and a wide range of other products

require durable, cost-efficient and environmentally friendly surfaces.

Green technology Design & Fashion New Technologies


Products and services

PVD systems

▪ Machines (INLINECOATER™)▪ Coatings (e.g. MAXPHASE™)▪ Production line integration▪ Knowhow and licenses

Services

▪ Coatings Services▪ R&D support▪ Coating development

After sales

▪ Maintenance▪ Support▪ Consumables & spare parts


Impact Coatings, a PVD company

INLINECOATER™


Traditional box coater

PVD system

1

3

2LL Pump Top view

Short cycle and high-quality PVD

INLINECOATER™

small chamber and short cycle PVD

Side view Side view

LL - loadlock


Applications

(D) (M)

(R)

(FC)


Note: For illustrative purposes, not indicative of who we work with.

Applications: Eyewear, watches & accessories

Customers: Eyewear manufactures, watchmakers, and

other suppliers in the fashion & design industry. Often

owners of own brands.

Drivers: Quality, flexibility, specific colors

Impact Coatings position:

▪ Offers higher coating consistency and production

flexibility with INLINECOATER™

▪ Strong reference cases, 11 installations

Market potential:

▪ Large existing market segment

▪ Customers typically not cost sensitive

Decorative (D)


Plastic metallization (M) and reflectors (R)

Applications: Decorative components, emerging

technologies, automotive lighting reflectors

Customers: Automotive Tier 2, Tier 3, etc.

Drivers: Production technology, low cost per part,

production uptime

Impact Coatings position:

▪ Offers cost efficient production technology

▪ Strong reference cases, 10 installations

▪ Small player, many competitors

Market potential:

▪ Large existing and growing market segment

▪ Automation trend

▪ Emerging technologies


Fuel cells (FC)

Applications: Metal bipolar plates for hydrogen fuel cells

Customers: Automotive OEMs, automotive Tier 1-2, and other

fuel cell industry leaders

Drivers: Energy efficiency, durability, low cost per part

Impact Coatings offering & position:

▪ Ceramic MAXPHASE™ coating for LT-PEM bipolar plates

▪ INLINECOATER™ system for production and efficient R&D

▪ Coating service for R&D and initial production

▪ Well established knowledge center for fuel cell PVD coatings

▪ Advocate for post-coating production flow

▪ First FC coating system delivery April 2019

Market potential:

▪ Competitive solutions for today´s FC market

▪ Good potential to be part of tomorrow’s FCEV volume market


Company strategy: We aim to build a solid business within

D/M/R today, with a large future potential in fuel cells

“Build stable core

business in DMR today”

Decorative

Metallization

Reflectors

Impact

Coatings’ p

roven

com

petitiveness

Lo

wH

igh

“Invest in fuel cells for the future”

Time to multi-system sales


Full year 2018 and Q1 2019


2018 Transformation to industrial company

4 focus areas

1 Technological leadership → Deliveries in all focus segments passed 6 months

2 Commercial discipline → Financially sound customers, secured payments

3 Structured sales process → Predicted net revenue 2019 to increase significantly

4 World class manufacturing and quality → COGS and delivery times reduced, ISO 9001:2015

→ Goal to create a self-financing and growing industrial company

Industrial companyInnovation company

Achievements


Significant events 2018

▪ Torbjörn Sandberg appointed acting CEO May 26, and CEO October 5

▪ Accounting investigation against former CEO Henrik Ljungcrantz

▪ Updated strategy presented with Q2 report

▪ PwC appointed new auditor at Extraordinary General Meeting

▪ Change of Certified Adviser to Redeye AB

▪ PVD system order from Varioplast Konrad Däbritz GmbH

▪ PVD system order from Swiss watch manufacturer

▪ PVD system order from Henen Yuqing Power Co., Ltd.

▪ Previous orders from China Hydrogen Energy (2016) and Huaquing Power Technology (2017)

declared no longer valid


Significant events Q1 2019

▪ Order for PVD system from Beijing Shouhang Resources Saving Co., Ltd.

▪ Order for PVD system from a Scandinavian eyewear manufacturer

▪ Marie Dhayer Teikmans appointed new CFO

Significant events after the period

▪ Delivery of coating system to Henan Yuqing Power Co., Ltd.

▪ Delivery of coating system to a Swiss watch manufacturer


Financial results Q1 2019 and Full year 2018

Financials (SEK thousands) Q1 2019 Q1 2018 FY 2018 FY 2017

Net revenue 2 947 6 443 20 194 25 014

Total income 6 452 7 141 30 609 30 418

Gross margin (%) 54 58 37 23

Operating profit (EBIT) -10 320 -6 101 -37 568 -30 111

Net income -10 323 -6 121 -37 593 -29 887

Cash flow from operations -8 685 -3 696 -13 319 -43 801

Cash and liquid assets 37 984 61 619 46 669 65 386

Interest bearing debt 0 0 0 2 061

Shareholder equity 54 001 95 796 64 324 101 987


▪ Order book end Q1: EUR 4 059 thousands

(services and after sales not included)

▪ Two coating systems delivered in April

Order book and deliveries

Coating system order book for

delivery in 2019

Swiss watch manufacturer,

INLINECOATER™D

Henan Yuqing Power Co.,

Ltd., INLINECOATER™FC

Beijing Shouhang

Resources Saving Co., Ltd.,

INLINECOATER™

Scandinavian eyewear

manufacturer, INLINECOATER™D

Coating system deliveries Q2

Outlook 2019

▪ We have a good potential for delivering business

moving forward, even though timing is unclear

▪ We see that D/M/R – just as our strategy is

formulated – will deliver results in a shorter time

frame compared to Fuel Cells

Annual General Meeting ‒ May 15, 2019Annual General Meeting ‒ May 15, 2019

Summary

▪ To date four PVD coating systems for 2019 delivery shows commercial

discipline and trust from demanding customers

▪ Stable, repeat customers and high growth potential within Decorative,

Metallization, and Reflector (D/M/R) applications

▪ For the future, a high-performance fuel cell coating solutions

that addresses the needs of a global transport industry in transformation

▪ After 20+ years of innovation and development, Impact Coatings

is making progress toward becoming a profitable industrial company.

experience the future with pvd coatings...with pvd coatings ceo’s presentation annual general...

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