Slide 1: Glaston Q4 2023: Steady improvement in profitability throughout 2023
Glaston Q4 2023: Steady improvement in profitability throughout 2023 February 15, 2024 Antti Kaunonen, Interim CEO Päivi Lindqvist, CFO
Slide 2: Content
Content Q4/2023 highlights Market review Financial development Outlook 2024 Strategic targets
Slide 3: Q4 and Full-Year 2023 in Brief
Q4 AND FULL-YEAR 2023 IN BRIEF
Slide 4: Q4 2023 in brief
Q4 2023 in brief • The Architectural glass markets continued to slow down • In the Mobility, Display & Solar markets, activity in the Mobility markets picked up while the display market saw no major changes • Due to the good order intake development in the MDS segment, order intake was up 11% • Net
Slide 5: Full-year 2023 in brief
Full-year 2023 in brief • The Architectural markets slowed down. In the Mobility, Display & Solar markets, demand for automotive glass equipment developed favorably, particularly in China • Order intake was down 13% reflecting the slowdown in the Architectural market • Net sales totaled EUR 219.7 mi
Slide 6: Strategic targets - performance in 2023
Strategic targets - performance in 2023 Financial targets 2023 2022 2021 Annual average net sales clearly exceeding the +3% +17% +7% addressable equipment market growth Comparable EBITA 10% 6.8% 6.4% 6.1% Comparable ROCE 16% 12.7% 10.5% 6.1% Non-financial targets 2023 2022 2021 Net Promoter Score ˃4
Slide 7: Market environment in Q4
Market environment in Q4 EMEA AMERICAS APAC • An overall slowdown was noted in • For Architectural, Americas was • In China, demand for the Architectural market with the most active market and the architectural glass continued to increased uncertainty in Europe commercial markets continued to be sof
Slide 8: Strategy execution
Strategy execution • To accelerate strategy implementation and to better serve the customers, Glaston reorganized its structure • The transfer of basic capabilities and knowledge sharing for the production of Automotive pre- processing equipment in Tianjin, China was completed • The transition to lo
Slide 9: Sustainability highlights
Sustainability highlights • Glaston continued to reduce the carbon footprint of its own operations • Glaston submitted a new emissions reduction target to the SBTi*) covering the upstream and downstream value chain • Glaston conducted a Double Materiality Assessment as introduced as part of the EU’s
Slide 10: Financial Development
FINANCIAL DEVELOPMENT
Slide 11: Good level of new orders in Q4, up by 11% yoy
Good level of new orders in Q4, up by 11% yoy Group orders received, MEUR and yoy% FY 2023 orders received by product area, MEUR and yoy% -25% 41,7 3% Q3 2022 included 74,4 one 31 MEUR order of which 19 MEUR was cancelled in Q2 2023. FY 2023 yoy -30% change adjusted for 69,1 the cancellation -6% 39%
Slide 12: Net sales flat against high comparison figure
Net sales flat against high comparison figure Group net sales, MEUR and yoy% FY 2023 net sales by product area, MEUR and yoy% 110,0 90,0 3% -1% 53,3 76,0 70,0 3% 213,5 219,7 50,0 7% -1% 24,7 67,2 30,0 14% 3% 0% -2% 12% 59,8 55,2 59,7 52,6 52,3 53,5 51,3 53,5 47,9 Architechtural Tempering and Laminat
Slide 13: Americas strong growth region in 2023, APAC declined
Americas strong growth region in 2023, APAC declined FY2023 net sales by region MEUR, yoy% and share of total EMEA 33% 113.4 MEUR 52% Americas +1% 15% 72.4 MEUR +19% APAC 33.9 MEUR -16% 13 January-December 2023 February 15, 2024
Slide 14: Steady progress in profitability every quarter in 2023
Steady progress in profitability every quarter in 2023 14 January-December 2023 February 15, 2024
Slide 15: Reporting Segments
REPORTING SEGMENTS
Slide 16: Architecture – strong profitability
Architecture – strong profitability • Machine orders were down by 13% vs Q4 vs FY MEUR Q4 2023 FY 2023 o Tempering and Laminating Technologies 2022* 2022* heavily impacted by market uncertainty Order intake 38.3 -4% 165.8 -22% whereas positive development for Insulating Glass Technologies Order back
Slide 17: Mobility, Display & Solar – strong growth in orders, EBITA at break-even
Mobility, Display & Solar – strong growth in orders, EBITA continued at break-even • Strong order intake growth, +69%, driven by Q4 vs Q4 FY vs FY MEUR strong demand in China 2023 2022* 2023 2022* • Net sales on same level as in the comparison Order intake 19.0 +69% 53.5 +31% period Order backlog -
Slide 18: Very strong operating cash flow as usual in Q4
Very strong operating cash flow as usual in Q4 Quaterly operating cash flow, MEUR 13,1 7,7 8,7 6,6 5,5 3,5 4,4 3,8 0,6 0,3 0,8 -0,5 -0,5 -6,8 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net debt, MEUR Net gearing, % 54% 49% 42% 34%
Slide 19: Continued progress in EPS and capital return
Continued progress in EPS and capital return Comparable EPS, € Capital return per share, € 0,10 0,07 0,05 0,05 0,04 0,03 0,02 0,01 2020 2021 2022 2023* 19 January-December 2023 February 15, 2024 * Capital return is the proposal by the Board of Directors
Slide 20: Glaston EU taxonomy alignment 2023
Glaston EU taxonomy alignment 2023 • Glaston’s businesses enabling climate change mitigation are: In 2023, taxonomy aligned businesses o Insulating glass technologies and related services, which 46 (43)% of total net sales enable energy efficiency of buildings 34 (28)% of Capex and 25 (28)% of Opex
Slide 21: Outlook 2024
OUTLOOK 2024
Slide 22: Glaston's outlook for 2024
Glaston’s outlook for 2024 Glaston starts the year with a lower order backlog than the previous year. However, given the expected improving market activity during the year, Glaston Corporation estimates that its net sales and comparable EBITA will stay at the same level or increase slightly in 2024
Slide 23: Revised Strategic Targets
REVISED STRATEGIC TARGETS
Slide 24: Megatrends accelerating Glaston's business
Megatrends accelerating Glaston’s business Urbanization Climate Economical Embedded Social & change & technology sustainability rise of & political megacities resource reality Automation Human rights scarcity Regulation China economy Robotics Responsibility Environmental Circular economy awareness G
Slide 25: Glaston's addressable equipment market
Glaston’s addressable equipment market* • The architectural glass processing equipment market is expected to gradually recover from -6 % in 2023 back to approximately 5% during 2025-2026 2021 2022 2023 2024 2025 2026 2027 • The mobility, display and solar glass processing equipment market is expecte
Slide 26: Glaston's medium-term strategic targets
Glaston’s medium-term strategic targets* Comparable Comparable NET SALES Annual average exceeding EBITA ROCE the addressable equipment markets growth 10% > 16% Net Promoter Lost Time Employee GHG Score Accidents Engagement Emissions > 40 0 > 75 -50% -58% Scope 3 intensity per square Absolute scope 1
Slide 27: Strategy focus areas
Strategy focus areas Glaston strategic initiatives ➢ Strengthening commercial excellence within technology leadership ➢ Glaston plans to continue to invest in product development at similar levels as in 2023 (4.2 % of net sales) ➢ Review the need to expand the production capacity of Insulating Glass
Slide 28: Comparable EBITA drivers in medium-term (3-5 years)
Comparable EBITA drivers in medium-term (3-5 years) ~10% + Fixed cost leverage + Automation & Innovation efficiency 6.8 % - Cost inflation - Growth resourcing + Sourcing benefits + Operational efficiency + Higher services share - Cost inflation - Pricing for market share gains - Mix within Services
Slide 29: Questions
QUESTIONS eeing it through aston \
Slide 30: Financial reports in 2024
Financial reports in 2024 Interim report January-March 2024, on Friday, 3 May 2024 Half year financial report 2024, on Friday, 9 August 2024 Interim report January-September 2024, on Wednesday, 30 October 2024
Slide 31: This Q4/2023 financial report provides future prospects involving risk and uncertainty factors, and other
This Q4/2023 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 subj
Slide 32: Thank you!
> www.glaston.net Thank you! IR-contact: pia.posio@glaston.net
Slide 33: Appendix
Appendix
Slide 34: Key Figures
Key Figures MEUR 10–12/2023 10–12/2022 Change% 1–12/2023 1–12/2022 Change% Order intake 57.6 51.7 11.4% 220.3 253.0 -12.9% Order backlog*) 106.5 138.3 -23.0% 106.5 138.3 -23.0% Net sales 59.7 59.8 -0.2% 219.7 231.5 2.9% Comparable EBITA 4.6 4.2 9.0% 14.9 13.6 9.1% EBITA% 7.6% 7.0% 9.2% 6.8% 6.4% 6.1
Slide 35: Glaston Services portfolios
Glaston Services portfolios MDS 14% Upgrades IG AD 15% Upgrades IG 70% 13% 12% HT HT Field Field services services AD MDS HT HT IG IG 70% 69% 67% Spare AD HT Spare MDS HT parts parts IG IG 4% Other 5% Other 2020 2023 Total revenue 58.1 MEUR Total revenue 76 MEUR 35 January-December 2023 February 15,
Slide 36: Equipment market view
Equipment market view Architectural Market – Regional view ~5% ~25% >5% Architecture <5% ~15% Insulating Americas EMEA APAC Tempering and laminating 130 MEUR* 180 MEUR* 230 MEUR* Rest +3%* +0%* ~15% +4%* Market size 2022*, Growth % 2023-2027*, Market share 2022** Mobility, Display & Solar Market – G
Slide 37: US and EU architectural end-market indicators
Index (100=2000) # of starts in thousand 37 50 0 100 150 200 250 1.000 1.500 2.000 2.500 0 500 2005 2006 2006 2007 2008 2008 Source: FRED 2009 2010 2010 2011 2012 2012 2013 2014 2014 Source: Dodge construction network 2015 2016 2016 2017 US housing starts 2018 2018 Dodge momentum index 2019 Architec
Slide 38: APAC and Mobility, Display & Solar end-market indicators
Architecture APAC and Mobility, Display & Solar APAC architectural end-market Mobility & Solar end-market indicators indicators China newly started real estate construction Global light vehicle production Million sqm useful floor space 2.500 100 Millions of light vehicles 2.000 80 1.500 60 1.000 40
Slide 39: Glaston's strategic targets
Glaston’s strategic targets Targets medium-term (3-5 years), emission targets by 2032 2023 2022 2021 Annual average net sales exceeding the addressable equipment +3% +17% +7% markets growth Comparable EBITA 10% 6.8% 6.4% 6.1% Comparable ROCE above 16% 12.7% 10.5% 6.1% Net Promoter Score above 40 62