Interim Report January – September 2018

Increased order intake and acquisition of I-Window generate a strong tender base

Third quarter of 2018

  •  Net sales for the period amounted to SEK 0.0 (3.3) million and earnings to SEK -12.5 (-13.5) million, which corresponds to earnings per share of SEK -0.30 (-0.58).  
  •  Cash and cash equivalents on September 30 amounted to SEK 12.5 million. 
  •  In August, the assets of I-window International AB were acquired to broaden the product portfolio and strengthen the sales organization.
  •  Order intake amounted to SEK 10 million during the quarter. Total tender base, including the acquisition of I-window, amounts to over SEK 100 million on the reporting date.
  •  Significantly increased customer interest in the Company’s products.
  •  Christer Simrén took over as the new Chairman of the Board on August 30.

Events after the end of the period

  • The Board of Directors has intensified its work to secure the company’s long-term financial position. A short-term debt financing of SEK 12 million has been agreed with external investors.


20182017201720162017
SEK millionJul-SepJul-SepJan-SepJan-SepJan-Dec
Net sales0,03,34,46,16,9
EBITDA-10,8-12,0-46,0-32,7-51,0
Net income-12,5-13,5-50,5-37,4-57,2
EPS before dilution, SEK-0,30-0,58-1,29-1,95-3,17
EPS after dilution, SEK-0,30-0,58-1,29-1,95-3,17
Cash and cash equivalents at end of the period12,556,712,556,738,5


ChromoGenics offers dynamic glass with controllable heat- and light transmission. The company’s unique technology ConverLight® provides sustainable solar control for increased indoor comfort and energy efficiency. ConverLight® also contributes to Green Building certifications. In 2016 the company started commercial sales to real estate projects in Scandinavia.

ChromoGenics is located in Uppsala, Sweden, and the technology is derived from the world leading research center at Ångström Laboratory at Uppsala University. The plant has been partly financed by a conditional loan from the Swedish Energy Agency. ChromoGenics share (CHRO) is listed on Nasdaq First North Stockholm with G&W Fondkommission as Certified Adviser. http://www.chromogenics.com 

“The hot summer and increased focus on global warming strengthen the demand for our products. The acquisition of
I-Window has broadened the product portfolio and strengthened the sales organization. We are starting to see the results!”
 

Comments from the CEO

We acquired I-Window this quarter to expand our product portfolio and strengthen our sales organization. The products in both companies complement each other very well and we see good development opportunities for common products. Overall, the business will increase growth within the company and make us more complete in our offer. The agreement is made through an earn-out model, which gives us a common strong focus on the future. 

During the quarter, we have signed orders totaling approximately SEK 10 million, and we are currently in the final negotiations for a number of projects that have a high probability of being realized into orders. 

I stress that ConverLight® and I-Window resolve a highly relevant problem, which means our timing is impeccable. This has been clearly demonstrated by the hot summer that settled across the Nordic region this year. 

During the quarter we have had a close dialogue with our customers regarding earlier challenges in establishing the business that resulted in replacement deliveries. We have identified and rectified the errors, and our tests show 100% reliability after the measures. We are taking our responsibility and will continue to maintain a close dialogue with our customers, but replacement deliveries are weighing heavily on the company’s finances. At the end of September, the company had made provisions of approximately SEK 8 million, but it cannot be ruled out that the costs can be higher. 

We have entered into a short-term loan financing of SEK 12 million to give time to the intensified work to secure the company’s long-term financial position. The action plan and its estimated annual savings of SEK 7 million will have an impact starting in Q4 2018, with the full outcome in the spring of 2019. 

During the quarter, we received our first order to deliver ConverLight dynamic glass to a residential project in Uppsala, where Åke Sundvall is building tenant-owned apartments. ConverLight was selected because of the project’s focus on innovative architecture featuring large glass sections to enable unobstructed views and a comfortable indoor environment. Because the investment cost was comparable to alternative solutions, such as external solar protection through the installation of awnings and curtains, which obstruct the view and require maintenance, the choice fell naturally to ConverLight. 

Christer Simrén has taken over as Chairman of the Board of Directors. He has worked in the process industry for a long time and has previously held the role of COO at BillerudKorsnäs. Our CFO, Susanne Andersson, has announced her resignation to take another external assignment, but remains in the role during the notice period. Recruitment process for finding a new CFO has been initiated.

The five-year vision of achieving annual deliveries of 100,000 sqm of ConverLight® remains. We are working methodically to achieve this goal and taking the actions necessary to gradually upscale sales and production.  

Jerker Lundgren, CEO
 

For more information, please contact:

Jerker Lundgren, CEO
Susanne Andersson, CFO & Head of Communications
Tel: +46 (0)18 430 0430
info@chromogenics.com
Certified Adviser: G&W Fondkommission

This information constitutes such information that ChromoGenics AB (publ) is obligated to disclose in accordance with the EU Market Abuse Regulation. The information was submitted by the above-mentioned contact persons for publication on October 26, 2018, at 08:30 CET.

Every care has been taken in the translation of this document. In the event of discrepancies, the Swedish original will supersede the English translation.


About ChromoGenics

ChromoGenics offers dynamic glass with controllable heat- and light transmission. The company’s unique technology ConverLight®provides sustainable solar control for increased indoor comfort and energy efficiency. ConverLight®also contributes to Green Building certifications. In 2016 the company started commercial sales to real estate projects in Scandinavia.

ChromoGenics is located in Uppsala, Sweden, and the technology is derived from the world leading research center at Ångström Laboratory at Uppsala University. The plant has been partly financed by a conditional loan from the Swedish Energy Agency. ChromoGenics share (CHRO) is listed on Nasdaq First North Stockholm with G&W Fondkommission as Certified Adviser. http://www.chromogenics.com

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