Slide 1: Half-year financial report January-June 2021
Half-year financial report January-June 2021 Glaston Corporation Record high quarterly order intake in Q2 Revised strategy with financial and new non-financial targets
Slide 2: Content
Content • Q2/2021 highlights • CEO review • Financial development • Specified outlook 2021 • Revised strategy 2021-2025
Slide 3: Q2 / 2021 Highlights
April-June 2021 Q2 / 2021 HIGHLIGHTS
Slide 4: Q2 2021 highlights
Q2 2021 highlights • Q2 orders received were up +175% compared to the same period in 2020 (+48% compared to Q2/2019) o Q2: EUR 65.9 (24.0) million (Q2/2019: 44.5) • Net sales for the second quarter decreased -12% o Q2: EUR 43.3 (48.9) million • Comparable EBITA margin improved o Q2: EUR 2.4 (2.3) mi
Slide 5: Architectural market Q2
Architectural market Q2 EMEA Americas Asia • Good market activity both in new machine and • In North America, the stable market recovery • In China, the strong market recovery for upgrade investments. insulating glass lines continued with continued, driven by the residential glass sector, in • The r
Slide 6: Automotive market Q2
Automotive market Q2 • Automotive production faced difficulties due to component shortages. • The general market sentiment was positive as automotive sales are increasing and production started to recover towards the end of the quarter, with increased investment activity in the market for new machin
Slide 7: Glaston Segments Q2 2021 in brief
Glaston Segments Q2 2021 in brief Heat Treatment Insulating Glass Automotive & Display • Market recovery in the Heat Treatment • Insulating Glass machine orders were • Demand picked up during Q2, yet Automotive segment continued, customers resumed their received from all market areas, and. e.g. prod
Slide 8: Financial Development
FINANCIAL DEVELOPMENT
Slide 9: Record-high order intake, +48% compared with Q2 2019
Record-high order intake, +48% compared with Q2 2019 Group orders received, M€ and yoy% H1 2021 orders received by product area, M€ and yoy% 35 % 72 % 34,3 32,1 63 % 214 % 113,2 7,5 73 % 38,9 175 % 69,6 65,9 -27 % 6% 3% 49,2 52,1 Heat Treatment Technologies 44,5 45,6 45,6 33,3 47,2 -46 % Insulating
Slide 10: Net sales declined, strong comparison quarter
Net sales declined, strong comparison quarter Group net sales, M€ and yoy% H1 2021 net sales by product area, M€ and yoy% -14 % 20,1 13 % 31,3 -41 % -23 % 5,1 28,0 95,9 -13 % 83,7 58,4 -16 % -34 % Heat Treatment Technologies 54,5 35,9 -12 % 47,3 46,9 48,9 -19 % -14 % 40,4 43,3 Insulating Glass Techn
Slide 11: All regions declined in net sales
All regions declined in net sales H1 2021 net sales by region M€, yoy% and share of total EMEA 44.7 MEUR 53% -11% 27% Americas 22.9 MEUR 19% -16% APAC 16.1 MEUR -11% 11 Glaston Corporation 5 August 2021 Half-year financial report January-June 2021
Slide 12: Comparable EBITA stable, margin improved
Comparable EBITA stable, margin improved EBITA, M€ and yoy% EBITA% 6,2 % 5,7 % 5,3 % 5,4 % 5,5 % 5,2 % 5,1 % 4,8 % 4,6 % 4,3 % 3,6 % 1% 4,4 4,4 3,6 3,1 -35 % -16 % 2% 1% 2,5 2,3 2,1 2,4 2,0 -58 % 2,1 1,3 H1 2020 H1 2021 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 12 Glast
Slide 13: Glaston Segments
Glaston Segments Heat Treatment Insulating Glass Automotive & Display 13 Glaston Corporation 5 August 2021 Half-year financial report January-June 2021
Slide 14: Heat Treatment
Heat Treatment
Slide 15: Heat Treatment – Return to growth
Heat Treatment – Return to growth • Order intake continued strong even MEUR H1 Chg* Q2 Chg* exceeding the levels of the past two quarters 2021 2021 • Net sales turned to growth in Q2 2021 as Order intake 47.2 +66% 24.4 +180% order intake recovery started to have an Order backlog 46.1 +56% impact Net
Slide 16: Insulating Glass
Insulating Glass
Slide 17: Insulating Glass – Temporary weakness
Insulating Glass – Temporary weakness • Order intake reached new records boosted MEUR H1 Chg* Q2 Chg* by strong market and execution of cross- 2021 2021 sales opportunities Order intake 50.5 +55% 30.9 +170% • Operational growth but decline in net sales. Order backlog 35.7 +127% The comparison period
Slide 18: Automotive & Display
Automotive & Display
Slide 19: Automotive & Display – Exceptionally high margin
Automotive & Display – Exceptionally high margin • Market picked up and order intake improved MEUR H1 Chg* Q2 Chg* again – the level is historically still modest 2021 2021 • Operational growth but decline in net sales. Order intake 15.1 +93% 10.3 +186% The comparison period benefited from Order bac
Slide 20: Strong order intake boosted cash flow and reduced gearing
Strong order intake boosted cash flow and reduced gearing Net debt, M€ Net gearing, % 55% 55% 53% 54% 52% 51% 52% 49% 49% 45% 42% 38% 32% 17% 43,8 41,0 33,0 37,2 37,4 37,2 33,6 28,4 17,7 18,1 19,3 21,4 13,9 8,4 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q
Slide 21: Outlook 2021
OUTLOOK 2021
Slide 22: Glaston's specified outlook for 2021
Glaston’s specified outlook for 2021 • Based on the high number of orders received since the fourth quarter of 2020, Glaston Corporation estimates that its net sales will improve in 2021 from the level reported for 2020. • Glaston specifies its outlook for comparable EBITA, which is estimated to inc
Slide 23: Glaston Corporation revised strategy for 2021-2025
Glaston Corporation revised strategy for 2021-2025
Slide 24: Glaston's revised strategy
Glaston’s revised strategy • Key objectives: reaching clearly improved organic growth and profitability based on strategic initiatives and the expected market growth • The strategy roadmap execution for 2021-2025 builds on: 1. Glaston’s business area-specific strategic initiatives 2. Group-wide corn
Slide 25: Addressable market growth in 2021-2025
Addressable market growth in 2021-2025 Glaston’s addressable equipment market: • Expected to grow by more than 5 % annually, on average, during 2021- CAGR > 5% 2025* • The growth rate of the addressable equipment market exceeds that of the global flat glass market, which is expected to grow 3-4 % an
Slide 26: Glaston ambition by 2025
Glaston ambition by 2025 NET SALES EBITA ROCE Financial Targets* 10% 16% Annual average clearly exceeding the addressable equipment market growth Net Promoter Lost Time Employee CO2 Non-financial Targets* Score Accidents Engagement Emissions > 40 0 > 75 -50% Business Area-specific Must-win initiativ
Slide 27: Strategic roadmap 2021-2025: Business Area-specific Must-win highlights
Strategic roadmap 2021-2025: Business Area-specific Must-win highlights Insulating Glass Technologies Automotive & Display Technologies • Reduced energy consumption of • Selected applications buildings driving demand • Commercializing product portfolio • Strengthen position and broaden • Automotive
Slide 28: Strategic roadmap 2021-2025: Glaston Cornerstones initiatives enabling business growth
Strategic roadmap 2021-2025: Glaston Cornerstones initiatives enabling business growth 1. Innovate with customers to win 2. Lead digital transformation 3. Empower Glastonians to thrive 4. Elevate sustainability & continuous improvement 5. Master global sourcing & manufacturing 28 Glaston Corporation
Slide 29: Questions
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Slide 30: Financial reports in 2021
Financial reports in 2021 Interim report January-September 2021 Thursday, 28 October 2021 Capital Markets Day 2021 Thursday, 26 August 2021 www.glaston.net/CMD2021
Slide 31: Forward-looking statements disclaimer
This half year financial report provides future prospects involving risk and uncertainty factors, and other factors as a result of which the performance, operation, or achievements of Glaston may substantially deviate from the estimates. Forward-looking statements relating to future prospects are su
Slide 32: Thank you!
> www.glaston.net Thank you! IR-contact: pia.posio@glaston.net