Impact Coatings AB (publ)

Hello and welcome to today's webcast where Impact Coatings will present its financial results for the third quarter of 2026. Joining us today are CEO Jonas Nilsson and CFO Lena Åberg. At the end of the call we will have a Q&A, so you are welcome to submit questions using the form located to the right of the webcast. If you are calling in and want to ask a question, please press star 9 to raise your hand and star 6 to unmute your line when you have been handed the word. With that said, I will hand over to you Jonas and Lena, please go ahead.

Hi everyone and welcome to this presentation of the third quarter report. Today I am at the Hydrogen Technology World Expo in Hamburg. I'm here mainly to talk to our customers, the customers of the customers and prospective customers that are here. So let us hope that the Wi-Fi is with us today. Here is the agenda for today's webcast. We will start with highlights and business momentum for Q3 and one of the highlights is of course that we have a positive net income for the quarter. Our CFO Lina Åberg will take us through the financials. Then summary and outlook and the Q&A session at the end. As I said, I'm in Germany now and last week I was in Asia also to meet customers. I had lunch at the port of Ningbo with the chairman of a company that supplies hydrogen fuel cell system for trucks. Ningbo is in China. I was also given a tour of their test center and their exhibition center. Until now they have been buying their fuel cell stacks from external suppliers, but they are now preparing to manufacture their own. So the harbour in Ningbo is the world's largest port by total cargo tonnage. And it is said that the Chinese authorities use satellites to monitor CO2 emissions. And that is one of the reasons why hydrogen powered trucks are used in area. There are three hydrogen refueling station near the port and seven across the city. The hydrogen is a byproduct of the nearby industry and the company I visited they have their own pipeline which the chairman showed me and buys the hydrogen for 25 Chinese yuan per kilogram. And that is actually cheaper than diesel in Sweden. But what really struck me was how proud the chairman was when he told that the company had delivered 613 vehicles, many of which had been operating around the clock for several years. And this was before we looked at the fuel cell stacks. When we got to them, we could point out that they came from a manufacturer that actually uses our coating. So without realizing it, he had been telling us about the performance of fuel cell systems that use our coating. And of course, that was very useful information for me. We were not discussing laboratory tests or theoretical performance. We were talking about real vehicles operating in real commercial applications year after year with our coatings. So back to highlights for Q3. Order intake was moderate with 9.5 million SEK. We do have a steady inflow of new paying customers, more than 70 since we started monitoring this three years ago, 11 previous quarter and five this quarter. We had decent net sales of 27.5 million, mainly from machine sales to HA wave, but also delivery of coatings, services, orders and aftermarket. Plus 9 million net sales of recovered metals. This totals 36.5 million in net sales. And the net income for the quarter was positive both with and without the sales of recovered metals. So here are some pictures. On the top left picture you see the IC500 for antenna coatings installed in the production hall of HJ Wave. I think you have already seen it on LinkedIn. If not, start following Impact Coatings on LinkedIn and you will get some regular updates that are not at press release level. Actually, I was in Korea last week and I was talking to Mr. Yoo, the CEO of HAWAVE. He was happy and he was proud of the company he had built. And of course, he also talked about his expansion plans. Another thing you have already seen on LinkedIn is the factory acceptance test of the machine that was shipped to Denmark, actually shipped yesterday. To the left, you see our Nils who has played a central role in all our deliveries to Lindbergh. Then you see Nils Mikkelsen, head of PVD at Lindbergh. And then we have Petter and Daniel, our COO. So, order intake for the third quarter was moderate, but now in Q4 we got an order for an IC2000 from a research institute in Romania. This is interesting from several aspects. Firstly, we won in competition with two of our main competitors. Secondly, we talk a lot about using the same machine type all the way from prototyping to series production. This is possible through our unique design of our machines. Others, they use batch coaters for prototyping and then transfer the process to huge linear inline coaters. We make the prototyping in the real machine. We start production in the real machine. We ramp up in the real machine and add more machines as the volumes grow. And this is of course ideal for volatile markets. Looking at some of the big linear inline coaters on the market, they consume four times the floor space. They are four times as expensive and also they have four times the throughput. So our concept is better for volatile markets because you can add machines when the demand increases. I forgot to mention redundancy, but I think you get the point about this text. We can take next slide. So, well, on this slide, my colleagues has gone a bit bananas with AI, but what we want to illustrate is that we have five regions now selected for the four year long hydrogen pilot program in China. As I told in the beginning, I was in Shanghai last week for customer meetings. It doesn't look like the picture, but the main message is that the Chinese market starts moving again. Right now, we are running one shift production in our coating service center in Shanghai. And actually, I tried to invite our whole team for dinner last Thursday, but they had to work overtime to get ready with that day's production. So unfortunately, we had to cancel. At the last quarterly presentation, you got a guided tour in our coating service center in Linköping by Peter. The center in Shanghai, it's a little bit more advanced with more automation. We have a fully automated cleaning line with 12 stations for detergent cleaning, ultrasonic cleaning, drying of the plates. They are actually dried with heat and vacuum to get all of the moisture out of the inner channels of the bipolar plates. After cleaning they go to coating and there is a robot loading our IC2000 which we call Vilma who do the coating. And as some of you might know, all our machines, they have names. Dependent on size of the plates and type of coating, Wilma is capable of 8,000 bipolar plates per day. As long as someone gives her a bit of care and changes her so-called targets, which is the raw material between the shifts. After coating we have a fully automated visual inspection system and the last station is laser marking and packing. There is a movie clip from our Shanghai Coating Service Center on our homepage so I recommend you to go to our homepage and have a look at that movie clip. Right now, we can handle the production in Shanghai with one shift and some overtime, as I mentioned, but I'm looking forward to go back to full two shift production. In Sweden, we don't have the same degree of automation as in China, but we have more machines and we do a lot of customer samples. This quarter we welcomed five new paying customers and the start of the customer journey is typically to deliver paid samples. In Sweden we also run serious production of coatings of earrings. We do coatings of components for the Swedish company Exegere. We do coatings for pulse measuring devices to make them sweat resistant. and also some other special applications. But in terms of money, coatings for PEM electrolyzers is the biggest business at our coating service center in Linköping. And it's mainly for the European and the North American market. Energy is our focus area and especially SOFC. SOFC development and customer samples for solid oxide fuel cells are mainly done in Sweden, although the market is focused on Asia. That leads us to new customers. So in total we added five new paying customers during the third quarter, which is along the target of approximately two per month. In total we have added 18 new paying customers this year. Looking at the picture, it might seem a little low with only one new SOFC customer. But to put it into perspective, the SOFC companies, they are quite big. And we have delivered samples to four of the top five in this market. Given their size they are also thorough in testing and what we see is longer evaluation and qualification cycles in the SOFC market compared to the PEM market. So with that I leave the word to Lena who will guide us through all the figures in the report.

Yes, maybe, maybe not all. Thank you, Jonas. Maybe not all the figures, but the main parts anyway. So we will start looking at net sales. As Jonas mentioned, group net sales for the third quarter increase amounted to 36.5 million compared to 15.2 million last year. and it comprised of coating systems sales of 16.6 million, coating services of 17.8 million and aftermarket sales of 2.1 million. But as Jonas mentioned, coating services net sales includes recycled metal sales of 9.0 million compared to 1.4 million last year. And the subsidiary in China accounted for 1.7 million of the group net sales. And gross margin for the quarter was 56% equal to Q3 2025. If we look at group net sales from January to September, it amounted to 58.9 million compared to 31.5 million. And coating services net sales includes recycled metal sales of a total of 13.8 million compared to 1.8 last year. The subsidiary in China accounted for 4.4 million of the group net sales. And the gross margin was 58% so far this year compared to 52% last year. If we look at the main costs for the quarter in the chart, personnel costs decreased 3.3 million to 9.4 million compared to 12.7 million in Q3 2025. And it shows the continued effect from the cost reductions. The full-time equivalents by the end of the quarter was 43 compared to 54 last year. And the bottom chart shows the quarterly development of EBITDIA and EBIT, where the group, as mentioned, reported a positive, both EBITDIA and EBIT and net income. So the EBIT was 3.8 million and net income 3.6 compared to minus 12.1 last year. And if we look at the year-to-date figures, January to September, personal cost decreased to 34.2 million compared to 43.8 million. Again, reflecting the implemented cost reductions. And the average number of full-time equivalents for the year so far was 45 compared to 61. Operating loss January to September was minus 20.3 million compared to minus 41.9 million. If we look at the quarterly development of the main parts of the balance sheet, there are small changes in fixed assets compared to the year end. Even though we have depreciations and they were larger than investments, but there are on the other hand increase due to some currency effects from the subsidiary in China. Inventories have increased so far this year, mainly in work in progress, but we have now in Q4 delivered another machine. Short-term receivables have increased mainly from prepaid costs and accrued revenue. And total liabilities, which for Q3 2026 is only short-term liabilities, have increased mainly in accounts payables. And cash ending balance was 14.1 million compared to 37.4 at the year end 2025, but with less changes from Q1 2026. And we will move on to look at cash flow. So if we Look in the chart, we can see that cash flow from operations before change in working capital was positive, 6.0 million. And cash flow from operations amounted to minus 4.0. Looking at the year-to-date figures, January to September, cash flow from operations before change in working capital was minus 14.0. compared to minus 34.8. And the improvement of approximately 20 million is a mixture from the increased sales, improved margin and lower costs, especially personal costs. Cash flow from operations amounted to minus 20.7 million compared to minus 36.1. And there is a low level of investments, minus 1.8 million. Looking at cash flow from financing activities, it amounted to minus 1.0 million. In Q1, the parent company repaid a short-term loan of 5 million SEK. And in Q3, a new short-term loan of 4 million SEK was raised. The corresponding period of the previous year included new borrowings in the subsidiary in China of 23.2 million. So total cash flow for January to September amounted to minus 23.5 million compared to minus 19.6 last year. And at the end of the period, the group's cash amounted to 14.1 million compared to 12.9 in September last year. And with that, I leave the word back to you, Jonas, for the summary.