CEO Michael Stadi talks about FOM Technologies

Could you provide a brief introduction about yourself and FOM Technologies?

– My name is Michael Stadi and I’m the CEO of FOM Technologies. I have an economic and financial background spending about half of my career in the financial sector and the other half of my career, I have been leading and scaling technology companies. I joined FOM in 2017 as CEO and listed the company on Nasdaq First North in 2020.

FOM Technologies, founded in 2012 and headquartered in Copenhagen, Denmark, specializes in designing and manufacturing of advanced machines used for material research. The technology is called slot-die coating. These machines enable researchers, scientists, and professionals to develop and commercialize next-generation functional materials. Slot-die coating is a precise method for depositing liquid onto substrates, offering uniformity and efficiency across various applications. FOM Technologies' product portfolio includes roll-based, sheet-based, and roll-to-roll machines, catering to both entry-level and highly advanced users like world leading academic customers to fortune 500 customers. Our equipment is utilized in a variety of industries such as Solar, Batteries, Fuel-cells, Super capacitors, Medtech and Defense.

What are the main products of FOM Technologies, and do you have many recurring customers?

– FOM Technologies specializes in the design and manufacture of advanced material science equipment, offering a range of products tailored to various application needs:

Roll-Based Machines:

• Entry-Level: FOM nanoRC – A lightweight, cost-efficient system ideal for testing slot-die coating on flexible substrates.
• Intermediate-Level: FOM arcRC – Designed for researchers transitioning from spin coating, suitable for applications like perovskite photovoltaics and OLEDs. Advanced-Level: FOM sigmaR2R – A lab-size roll-to-roll slot-die coating machine with components like unwind, rewind, and a 2-zone oven.
• Compact ModuloR2R: Engineered for precision and efficiency, suitable for battery electrodes, fuel-cell membranes, and flexible solar cells.

Sheet-Based Machines:

• Entry-Level: FOM scalarSC – Facilitates precise coating on substrates up to A4 size.
• Intermediate-Level: FOM vectorSC – Offers enhanced control for coating processes on various substrate materials.
• Advanced-Level: FOM alphaSC – Provides automated, high-precision coating capabilities for complex applications.

15-20% of FOM’s customers are recurring customers, purchasing same level of equipment or more advanced equipment. These collaborations indicate a level of trust and satisfaction that may lead to ongoing partnerships. The company is building a service organisation to leverage recurring revenue.

You recently published your annual report. What achievements from 2024 are you most proud of?

– In 2024, FOM Technologies achieved several significant milestones that underscore our strategic growth and innovation:

Expansion into the U.S. Market: The company established a sales subsidiary in the United States, enhancing its presence and facilitating direct engagement with clients in North America.

Supply Chain Integration: FOM Technologies acquired a production company in Sweden, streamlining its supply chain and bolstering manufacturing capabilities.

Advancements in Artificial Intelligence: Collaborating with the University of Washington and Argonne National Laboratory, the company secured funding from Washington State’s Clean Energy Fund to develop AI and machine learning technologies aimed at enhancing manufacturing processes for batteries, fuel cells, and thin-film solar applications.

Strategic Partnerships: FOM Technologies received orders from leading global companies, including a high-tech firm specializing in lighting solutions and optical technologies, indicating the industry's trust in its advanced slot-die coating equipment for research and development in areas like micro-LED devices.

These accomplishments reflect FOM Technologies' commitment to global expansion, technological innovation, and fostering collaborations within the high-tech industry.

After several years of rapid growth, your net revenue decreased significantly last year. What were the main reasons behind this change?

– In 2024, FOM Technologies experienced a significant decrease in net revenue compared to the record year of 2023. This decline was attributed to the following two key factors:

Slow solar market: The solar industry in the western world has been suffering due to increased Chinese competition. That has impacted our revenue for 2024.

Slow energy harvesting market: In 2022 and 2023 the interest in batteries and fuel-cells exploded. That slowed significantly due to the collapse of Northvolt among our European battery players. The strong slow-down within this sector has impacted total income of FOM Technologies in 2024.

Despite these challenges, FOM Technologies' total revenue and EBITDA remained within the financial guidance published in August 2024. However, management considered the year's results unsatisfactory due to the lower activity and negative EBITDA compared to the record financial year 2023.

United States has been an important market for FOM Technologies. Which other markets or product segments do you see significant growth potential in over the coming years?

– FOM Technologies is a “born global” company, with only insignificant income in Denmark. Beyond the United States, FOM Technologies has identified several markets and product segments with significant growth potential in the coming years:

European Union and Asia: The company has been actively engaging with clients in these regions, reflecting a strategic focus on expanding our global footprint.

Energy Harvesting sector: FOM Technologies operates in the market for material research within Energy Harvesting (Solar). The company's technology is instrumental in advancing research and development in solar energy and battery technologies, positioning it to capitalize on the increasing demand for sustainable energy solutions.

Battery Industry: The global push towards electrification and energy storage solutions has heightened the need for advanced battery technologies. FOM Technologies' equipment supports research and development in this sector, offering substantial growth opportunities.

By focusing on these markets and segments, FOM Technologies aims to leverage its expertise in slot-die coating technology to drive future growth and innovation.

Can you share any insights into industry trends or technological advancements that you believe will impact FOM Technologies in the future?

– FOM Technologies operates within the dynamic field material research, involving several industry trends, technological advancements and application fields that could significantly influence its trajectory:

Market Growth and Diversification

Expanding Slot-Die Coating Market: The slot-die coating system market is projected to grow in the future. This growth is driven by increasing applications across industries such as electronics, solar energy, energy storage, super capacitors, highlighting the rising demand for precision coating techniques that ensure uniformity and efficiency.

Technological Innovations

Solution-Based Methods: Techniques such as spin-coating and inkjet printing provide cost-effective solutions for producing flexible electronics. Slot-die coating stands out in this category by offering scalable and uniform thin-film deposition, making it suitable for high-throughput manufacturing processes.

By staying attuned to these trends and continuously innovating, FOM Technologies can strengthen its position in the evolving thin-film deposition landscape, catering to the growing demand for advanced coating solutions across various high-tech industries.

Where do you envision FOM Technologies in five years?

Over the next five years, FOM Technologies envision to solidify our position among one of the leading companies within slot-die coating technology enabling material science. This we will achieve through the following strategic initiatives:

Global Expansion

U.S. Market Penetration: Following the establishment of a U.S. sales subsidiary in 2024, the company aims to deepen its presence in North America by fostering direct client relationships and expanding its market share.

European and Asian Markets: FOM Technologies plans to strengthen its footprint in Europe and Asia, leveraging existing relationships, distributors and exploring new partnerships to drive growth in these regions.

Product and Technology Innovation

Diversified Product Portfolio: The company intends to broaden its range of slot-die coating machines, catering to both existing applications but also towards the up-scaling towards production in corporations.

New application fields: Recognizing the growing importance of material research, FOM Technologies is committed to supporting innovations in new application fields focusing on material science and research.

Financial Growth

Revenue Targets: Building upon the financial guidance for 2025, which projects total income between DKK 40 million and DKK 60 million, the company aims for consistent revenue growth by capitalizing on expanding markets and technological advancements.

Profitability focus: FOM Technologies is dedicated to achieving sustainable profitability by optimizing operations, enhancing supply chain integration, and investing strategically in research and development.

Industry Leadership

Market Positioning: With the slot-die coating system market projected to grow significantly, FOM Technologies seeks to maintain and develop into one of the players with market-leading position by delivering high-quality, innovative solutions that meet the evolving needs of various industries.

By executing these strategies, FOM Technologies aspires to be at the forefront of technological innovation and market expansion in the slot-die coating industry over the next five years.