Slide 1: Glaston H1 2023: Second-quarter order intake and profitability holding up
Glaston H1 2023: Second-quarter order intake and profitability holding up 1 August 2023 Anders Dahlblom, CEO Päivi Lindqvist, CFO
Slide 2: Content
Content • Q2/2023 highlights • Market review • Financial development • Outlook 2023
Slide 3: Q2/2023 Highlights
Q2/2023 HIGHLIGHTS
Slide 4: Q2 2023 highlights
Q2 2023 highlights • Market activity in the architectural glass segment slowed down, however, good order intake in Heat Treatment business. Insulating Glass order intake under pressure • Strong growth in Automotive order intake, up 32% • Second-quarter net sales up by 3% mainly due to good developme
Slide 5: Key Figures
Key Figures MEUR 4–6/2023 4–6/2022 Change% 1–6/2023 1–6/2022 Change% 1–12/2022 Order intake 53.6 56.2 -4.6% 110.5 115.2 -4.1% 253.0 Order backlog*) 115.2 106.0 8.7% 115.2 106.0 8.7% 138.3 Net sales 55.2 53.5 3.3% 106.5 105.8 0.7% 213.5 Comparable 3.4 3.5 -2.5% 6.4 7.0 -8.1% 13.6 EBITA EBITA% 6.2% 6.
Slide 6: Market environment in Q2
Market environment in Q2 EMEA AMERICAS APAC • Mainly due to the slowdown in the • For Insulating Glass, demand • China: residential markets especially in remained slow o Demand for architectural Europe, the markets for • For Heat Treatment, good glass continued to be soft Insulating Glass and Heat d
Slide 7: Strategy implementation
Strategy implementation • In order to accelerate the implementation of the strategy and to better serve the customers, Glaston plans to reorganize its structure • The reorganization supports Glaston to reach the 10% comparable EBITA margin financial target by 2025 • As of October 1, 2023, the plan i
Slide 8: Sustainability
Sustainability • In H1/2023, the Lost-Time-Injury-Frequency Rate was 10.1 (Rolling 12 month: 6.3, FY2022:3.9) and the number of accidents was 8 (4) • Indirect Scope 3 emissions for 2022 were calculated and totaled 684,150 (287,348) tCO2e. Around 99.8% of all emissions related to Glaston's activities
Slide 9: Financial development
FINANCIAL DEVELOPMENT
Slide 10: Fairly good order intake in softening market thanks to Heat Treatment and Automotive Technologies
Fairly good order intake in softening market thanks to Heat Treatment and Automotive Technologies Group orders received, MEUR and yoy% H1 2023 orders received by product area, MEUR and yoy% 0% -5% 29,5 35,9 -4% 51% -20% 115,2 110,5 13,6 30,8 90% 86,2 64,5 -13% -13% -4% -5% 59,1 59,0 56,2 56,9 53,6 5
Slide 11: Net sales grew 3% driven by the Insulating Glass segment
Net sales grew 3% driven by the Insulating Glass segment Group net sales, MEUR and yoy% H1 2023 net sales by product area, 110,0 MEUR and yoy% 90,0 -3% -3% 30,8 35,1 70,0 1% 50,0 105,8 106,5 -15% 8,3 9% 32,3 30,0 14% 3% 24% -2% 3% 59,8 55,2 52,6 52,3 53,5 51,3 43,3 46,4 47,9 Heat Treatment Technolog
Slide 12: Americas continues strong, EMEA returned to growth in Q2, China driving down APAC
Americas continues strong, EMEA returned to growth in Q2, China driving down APAC H1 2023 net sales by region MEUR, yoy% and share of total EMEA 54.3 MEUR 51% 36% -3% Americas 38.0 MEUR 13% +33% APAC 14.3 MEUR -33% 12 Half Year Financial Report 2023 1 August 2023
Slide 13: Reasonably good profitability, Automotive & Display reached break-even
Reasonably good profitability, Automotive & Display reached break-even EBITA EBITA% 6,9 % 7,0 % 8,0 6,6 % 6,6 % 6,6 % 6,6 % 6,0 % 6,2 % 7,0 5,8 % 5,5 % 5,1 % 6,0 5,0 4,0 -8% 3,0 7,0 6,4 21% 2,0 48% 4,2 -2% 3,5 3,5 3,5 -23% -14% 3,4 3,2 1,0 2,4 2,5 3,0 0,0 H1 2022 H1 2023 Q2 2021 Q3 2021 Q4 2021 Q1 2
Slide 14: Reporting segments
Reporting segments
Slide 15: Heat Treatment – good orders and margin progress in machines supported performance
Heat Treatment – good orders and margin progress in machines supported performance • 14% increase in machines orders. Services’ vs Q2 vs H1 order intake was down 23% due to lower MEUR Q2 2023 H1 2023 2022* 2022* upgrades orders Order intake 23.7 +1% 42.8 -7% • Net sales decreased by 11%, mainly due
Slide 16: Insulating Glass – strong net sales and profit performance, orders under pressure
Insulating Glass – strong net sales and profit performance, orders under pressure • Reflecting a softer market in Europe, which is MEUR Q2 2023 vs Q2 H1 2023 vs H1 clearly the strongest market for IG, machines 2022* 2022* orders declined 28%. Services orders grew Order intake 21.8 -18% 45.3 -13% 8%
Slide 17: Automotive & Display – gradual progress according to plans
Automotive & Display – gradual progress according to plans • Machine orders more than doubled from very vs Q2 vs H1 MEUR Q2 2023 H1 2023 weak comparison period, services orders 2022* 2022* declined 9% Order intake 7.8 +32% 21.8 +30% • With improving order intake, machines net sales Order backlog 8.8
Slide 18: Working capital increase consumed cash, capital return and debt repayment 5.4 million euros in Q2
Working capital increase consumed cash, capital return and debt repayment 5.4 million euros in Q2 Quaterly operating cash flow, MEUR 7,7 8,7 6,6 5,5 3,5 4,4 3,8 0,6 0,3 -0,3 -0,5 -0,5 -6,8 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net deb
Slide 19: Outlook 2023
OUTLOOK 2023
Slide 20: Glaston specifies outlook for 2023
Glaston specifies outlook for 2023 Glaston’s 2023 net sales and profitability development continue to be supported by the healthy order backlog. Despite the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2023 from the levels reported for 2022, and specifi
Slide 21: Questions
QUESTIONS eeing it through aston \
Slide 22: Financial reports in 2023
Financial reports in 2023 Interim report January-September 2023, on 26 October 2023
Slide 23: Forward-looking statements
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 24: Thank you!
> www.glaston.net Thank you! IR-contact: pia.posio@glaston.net