Interim Report January – June 2018

Launch of action plan with focus on process quality and growth

Q2 2018

  • Net sales for the period amounted to SEK 2.5 (1.7) million.
  • Earnings for the period amounted to SEK -16.7 (-10.5) million, which corresponds to earnings per share of SEK -0.40 (-0.46). During the quarter, a provision was made for SEK 4.4 million related to additional challenges in establishing new business, including replacement deliveries. Total provisions in the balance sheet amount to SEK 7.3 million.
  • Cash and cash equivalents as at June 30 amounted to SEK 29.4 million.
  • The Board of Directors has intensified the work to secure the company’s long-term financial position.
  • Jerker Lundgren took over as the new CEO on May 1.
  • Launch of action plan, including a cost savings program of SEK 7 million yearly.
  • ChromoGenics received its first reference order from Vasakronan, which was delivered during the quarter.
  • Vinnova awarded a grant for the “Smart Multifunctional Glass” project that is being led by RISE, Research Institutes of Sweden, and is a partnership including ChromoGenics, Inwido Sverige AB, Hancap AB, Solibro Research AB, Vasakronan AB and Volvo Personvagnar AB.
  • ChromoGenics has reinforced the sales initiatives in Norway.

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. www.chromogenics.com 

“My first impression – the market is showing strong interest in dynamic glass! We identified and addressed additional challenges to establishing the business. We launched an action plan with a focus on improved product and process quality. We restructured the sales process and modified the customer focus.”  


Comments from the CEO

I have had very intense and interesting months since starting on May 1. There is a lot to take in and a lot has changed.  

I can confirm that there is considerable interest in dynamic glass and ConverLight®. This interest can be found at all levels of the glass and construction industry – and globally. However, like with all new products, there is a trust barrier to overcome. We will therefore take a more active role and work more closely with our customers in Scandinavia to learn but also to create an understanding and the right expectation. We will focus more on energy savings as a whole and create simplicity in our interaction with customers. Only during June we have increased the number of leads significantly and reached closer to deals in a few interesting projects. 

I have also noted that ConverLight® resolves a highly relevant problem, and its timing is impeccable. This has been clearly demonstrated by the hot summer in the Nordic region this year. 

Unfortunately, one of my first impressions has also been that we have faced additional challenges establishing the business, which results in replacement deliveries that burdens the company’s finances. Commercializing a new technology takes time, but we have identified and rectified the errors and our tests show 100% reliability after the measures. We are taking responsibility and maintaining a close dialogue with our customers. This has burdened earnings during the quarter through additional provisions of SEK 4.4 million. 

As a result of these challenges, we are launching an action plan to achieve yearly savings of SEK 7 million. The savings are related to staffing, improved product and process quality and renegotiated supplier agreements and are expected to gradually go into effect during the fall of 2018 and be fully realized in the spring of 2019. 

We are proud to have been awarded a grant from Vinnova for the “Improved Performance for Electrochromic Foils” innovation project and to be part of the “Smart Multifunctional Glass” project to which Vinnova has also awarded a grant. This project is led by Research Institutes of Sweden (RISE).  

During the quarter, ChromoGenics delivered glass for skylights to AB Uppsala Kommuns Industrihus (IHUS). This order also entails retrofit construction work. The project is interesting since ConverLight® will be installed in one of two identical buildings, and the energy efficiency and indoor comfort of both buildings will be measured starting in the late summer. This will be a fantastic reference where we will be able to show that our product makes a difference. 

I look forward with a certain degree of humility to the task of leading the company into the next phase of its growth journey with a continued focus on innovative and sustainable customer solutions. There is a high level of activity in the office and out at our customers. The team we have assembled is committed and working hard to establish the platform of the future. 

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 


Contact:
Jerker Lundgren, CEO 
Susanne Andersson, CFO & Head of Communications
Tel: +46 18 430 0430
E-mail: 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 July 20, 2018, at 8:30 a.m. 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. www.chromogenics.com

Tags:

About Us

ChromoGenics is a leader in dynamic glass with controllable heat- and light transmission. The company’s unique electrochromic technology ConverLight™, provides sustainable solar control with increased indoor comfort and energy efficiency. In 2016 the company started commercial sales to real estate projects in Scandinavia.