Glaston Oyj · OMXHEX:GLA1V
Glaston Oyj — H1 2020 Earnings Presentation
19 slides from Glaston Oyj's earnings presentation, Aug 6, 2020
Slide 1: Half-Year Financial Report 1 January – 30 June 2020
GLASTON CORPORATION’S HALF-YEAR FINANCIAL REPORT 1 JANUARY – 30 JUNE 2020: COVID-19 PANDEMIC IMPACTED ORDERS AND NET SALES, TIMELY COST-SAVINGS SUPPORTED HEALTHY COMPARABLE EBITA 6.8.2020 Acting President and CEO Sasu Koivumäki & CFO Päivi Lindqvist VERTAILULUVUT PRO FORMA1
Slide 2: Forward-looking statements
This half year financial report provides estimates on 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 pros
Slide 3: Q2/20 in brief
Q2/20 in brief ▪ Orders received EUR 24.0 (44.5) million ▪ Net sales EUR 48.9 (58.4) million ▪ Comparable EBITA EUR 2.3 (3.6) million, i.e. 4.8 (6.2)% of net sales ▪ Order book EUR 49.1 (78.9) million at end of June ▪ Cash flow from operating activities EUR -0.3 (-5.4) million GLASTON CORPORATION 6.
Slide 4: COVID-19 impacts and mitigating uncertainties
COVID-19 IMPACTS AND MITIGATING UNCERTAINTIES ▪ All production operations maintained throughout the pandemic. ▪ Orders received declined significantly, market activity clearly picked up towards end of the quarter. ▪ The majority of trade fairs, including the entire industry’s most important bi-annua
Slide 5: Operating environment Q2/2020 – Architectural glass
ARCHITECTURAL GLASS OPERATING ENVIRONMENT Q2/2020 In the second quarter the COVID-19 pandemic changed the market situation significantly from the stable first quarter AMERICAS EMEA CHINA AND REST OF ASIA • In North America market activity • General market uncertainty, • In China market activity reco
Slide 6: Operating environment Q2/2020 – Automotive glass
AUTOMOTIVE GLASS OPERATING ENVIRONMENT Q2/2020 The already fragile investment-intensive automotive industry is facing an economic crisis due to COVID-19. • The low activity level in the automotive glass market continued in the second quarter. During the peak of the first COVID-19-wave, production ac
Slide 7: Segment development Q2 in brief
SEGMENT DEVELOPMENT Q2 IN BRIEF Heat Treatment Automotive and Emerging ▪ Orders received declined sharply due to the uncertainty in the market. Technologies ▪ Net sales impacted by postponements of deliveries and low services ▪ The automotive glass market was subdued volume actions. and customer ope
Slide 8: Customer operations picking up
CUSTOMER OPERATIONS PICKING UP Heat Treatment machines March-April Source: Glaston database GLASTON CORPORATION 6.8.2020 Half-year financial report 1 January – 30 June 2020 VERTAILULUVUT PRO FORMA8 8
Slide 9: Integration
INTEGRATION ▪ In 2020, integration has continued but due to the uncertainty caused by the coronavirus, certain long- term integration projects, i.e. integration of ERP systems) are postponed ▪ Annual cost savings from all measures undertaken since the acquisition are estimated to reach close to EUR
Slide 10: Financial development January-June 2020
FINANCIAL DEVELOPMENT JANUARY-JUNE 2020 GLASTON CORPORATION 6.8.2020 Half-year financial report 1 January – 30 June 2020 VERTAILULUVUT PRO FORMA10 2019 AND Q1/20 COMP. FIGURES PRO FORMA 10
Slide 11: Orders received
Orders received Group orders received Orders received by product area Q2/20 (MEUR) 70 63,4 60 56,2 0,2 (1,5) 52,8 5,4 (9,5) 49,2 50 44,2 45,3 44,5 45,6 45,6 9,9 (17,9) 40 30 24,0 6,7 (14,9) 1,7 (0,7) 20 10 Heat Treatment Technologies 0 Insulating Glass Technologies Q1/18 Q2/18 Q3/18 Q4/18Q1/19 Q2/19
Slide 12: Group order book at the end of the period
Group order book at the end of the period Group order book Order book by product area 30 June 2020 (MEUR) 120 104,2 99,9 100 1,8 (3,1) 88,8 87,0 5,2 (20,4) 84,5 78,9 79,1 79,5 76,4 80 60 26,2 (26,9) 49,1 15,7 (27,9) 40 20 Heat Treatment Technologies 0 Insulating Glass Technologies 03/18 06/18 09/18
Slide 13: Q2/20 net sales at reasonable level compared to peaking Q2/19
Q2/20 net sales at reasonable level compared to peaking Q2/19 Net Sales by product area 70 58,4 60 -0,2 (0,7) 54,2 55,4 54,5 11,2 10,7 (14,9) (17,1) 48,9 50 47,3 47,3 46,9 44,9 44,3 40 7,9 (8,3) 30 19,4 (17.4) 20 10 Heat Treatment Technologies Insulating Glass Technologies 0 Q1/18 Q2/18 Q3/18 Q4/18Q
Slide 14: Geographical distribution of net sales Q2/2020
Geographical distribution of net sales Q2/2020 EMEA 19,5% 20,4% 29.4 MEUR 60,1% APAC Americas 9.5 MEUR 10.0 MEUR (54 %) (27 %) GLASTON CORPORATION 6.8.2020 Half-year financial report 1 January – 30 June 2020 VERTAILULUVUT PRO FORMA14 2019 AND Q1/20 COMP. FIGURES PRO FORMA 14
Slide 15: Quarterly net sales by segment
Quarterly net sales by segment 70,0 The segment net sales totaled EUR 48.9 (58.4) million 60,0 • HT net sales decreased by 33%, 12,3 mainly due to lower preceding 50,0 11,2 quarters’ order intake and a 4,3 9,7 clear decline in spare parts and 40,0 11,9 22,9 21,4 8,5 22,4 field service revenue. The 2
Slide 16: Comparable EBITA by segment
Comparable EBITA by segment Comparable EBITA EUR Q2/20 2.3 (3.6) million. 4,0 Profitability development Q2/20 3,0 1,0 2,4 1,2 1,6 Fixed 0,6 2,0 Segment Machines Services costs 2,4 2,0 1,4 0,7 HT 1,0 1,3 IG 1,2 0,7 0,7 0,6 0,0 -0,2 0,1 Auto & ET -0,3 -1,1 -1,0 -2,0 Q3/19 Q4/19 Q1/19 Q1/20 Q2/19 Q2/20
Slide 17: Net debt and cash flow
Net debt and cash flow Debt, net debt [M€] and gearing [%] 100,0 54% 55% 53% 51% 51% 52% • Cash and cash 90,0 48% 45% equivalents were 80,0 38% EUR 20.6 million at 70,0 the end of the 60,0 period. • Committed revolving 50,0 17% credit facilities 40,0 enable further 30,0 financing of EUR 7.5 million
Slide 18: Glaston's outlook for 2020 unchanged
GLASTON’S OUTLOOK FOR 2020 UNCHANGED ▪ Glaston Corporation estimates that comparable EBITA for 2020 will decline from the 2019 level. ▪ The company’s current assessment is that the market will recover gradually and that third- and fourth-quarter orders will improve from the second quarter but stay b
Slide 19: Thank you!
THANK YOU! IR-contact: Josephine.Mickwitz@glaston.net VERTAILULUVUT PRO FORMA19