Impact Coatings (IMPC) investor relations material

Strategic direction and market focus

• Shifting short- and medium-term strategy to prioritize power generation via solid oxide fuel cells (SOFC), targeting the rapidly growing demand from AI data centers and off-grid power needs, including data centers powered by natural gas.

• Maintaining strong positions in fuel cell and electrolyzer markets, with continued support for hydrogen customers and leveraging SOFC learnings to improve hydrogen solutions.

• Active collaborations with Ceres (UK) and HD Hydrogen (Korea), two leading global SOFC power market players, providing access to global licensees and market opportunities.

• Flexible business model enables both machine sales and coating services, lowering customer entry barriers and supporting growth across energy, automotive, electronics, and luxury goods markets.

• Expansion in China has led to significant revenue growth, with the region now representing a major share of total turnover and a robust push-pull strategy with end customers.

Financial guidance and operational efficiency

• Achieved SEK 110 million in sales in 2024, with cost-saving initiatives and efficiency improvements expected to result in positive EBITDA at current sales mix.

• Coating services revenue is forecasted to exceed 2025 levels in 2026, with strong order intake from North America, Europe, and China, and net sales for 2026 projected to grow year-over-year.

• System sales have been challenging due to postponed investments, but machine sales are expected to rebound in all four major markets in 2026: Energy, Automotive, Electronics, and Luxury Goods.

• Cost reductions include staff cuts, local sourcing, and redesigning purchasing functions, targeting over 15% reduction in COGS and break-even at lower volumes.

• No immediate need for major investments; current facilities can double machine output with minor upgrades.

Technology and product development

• InlineCoater platform supports high-volume, high-quality coatings for flat components, adaptable for both existing and new applications.

• Introduction of iridium oxide PVD coatings for PEM electrolyzers reduces iridium usage by an order of magnitude, lowering costs and increasing competitiveness.

• SOFC coatings are critical for stack longevity and system economics, with the company’s technology offering a competitive advantage over pre-coated steel solutions.

• Exploring new verticals such as semiconductors, heat exchangers, and defense, leveraging expertise in advanced coatings for flat objects.

• Operates production facilities in Sweden and China, serving global markets in energy, automotive, and electronics.