Slide 1: Glaston Q4: Good profitability development in fourth quarter ends historical year
Glaston Q4: Good profitability development in fourth quarter ends historical year Glaston Corporation Q4- and full-year 2019 review President and CEO Arto Metsänen & CFO Päivi Lindqvist Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma figures. 1
Slide 2: 2019 in brief: Historic year
2019 in brief: Historic year ▪ The largest acquisition in the company's history was completed in the spring. The size of the company doubled. ▪ New, updated strategy and financial targets. ▪ In June, Glaston hosted Glass Performance Days, the largest international conference in the glass industry, a
Slide 3: Q4/2019: market environment and development
Q4/2019: market environment and development ▪ Challenges in Heat Treatment continued, especially in the EMEA area, but demand picked up towards the end of the year. ▪ Orders for the Glaston segment increased by approximately 40% from the previous low quarters but declined significantly from the live
Slide 4: Glaston Emerging Technologies
Glaston Emerging Technologies We look for new promising technologies and pioneering companies to develop and commercialize new glass innovations in all our customer segments. Architectural Solar Automotive Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro for
Slide 5: Emerging Technologies in Architecture
Emerging Technologies in Architecture Dynamic Glass with electrochromic technology Connectivity Source: www.pcmag.com We develop smart glass solution for masses in Heliotrope partnership, and in addition We work with solutions to solve the offer custom-designed laminating lines for other smart-glass
Slide 6: Emerging Technologies in Solar
Emerging Technologies in Solar Michigan State University, Richard Lunt Vesa Jääskö, Aalto University, GPD Building integrated photovoltaic …or it can be in a glass with (BIPV) painted surface All glass surfaces can be energy sources. Power source can be fully transparent…. Glaston Corporation Q4 and
Slide 7: Emerging Technologies in Automotive
Emerging Technologies in Automotive Source: www.byton.com/m-byte-concept We help the automotive industry to We help to bring displays improve their impact durability into car interior, including shapes Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma f
Slide 8: Bystronic Glass' integration
Bystronic Glass’ integration Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma figures. 8
Slide 9: Integration measures in the fourth quarter
Integration measures in the fourth quarter ▪ Success in cross-selling. ▪ Merging of overlapping operations continued. ▪ personnel reductions in, for example China, and in various operations of the company, such as sales and ICT. ▪ Cooperation agreement between Bystronic glass and HEGLA terminated in
Slide 10: Next steps in integration: new organizational structure
Next steps in integration : new organizational structure to drive growth and support the development of One Glaston Business areas What changes: • Glaston and Bystronic glass Glaston Heat Glaston Insulating Glaston businesses are Treatment Glass Automotive & divided into 3 Technologies Technologies
Slide 11: Next steps in integration
Next steps in integration ▪ The integration of the Bystronic glass brand with Glaston started at the beginning of 2020, with the aim of discontinuing its use by the end of 2020. ▪ The integration of ICT, CRM tools and digital services continues. Glaston Corporation Q4 and 1–12/2019 Please Note! All
Slide 12: Green Deal and environmental issues a hot topic in the glass industry
Green Deal and environmental issues a hot topic in the glass industry 12 Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma figures.
Slide 13: Glaston has identified its material CR-themes and defined a corporate responsibility agenda
Glaston has identified its material CR-themes and defined a corporate responsibility agenda for the company RESPONSIBLE (OWN) OPERATIONS RESPONSIBLE PARTNER Human resources Customer • Health & safety and risk prevention • User experience and customer satisfaction • Competencies and skills, developme
Slide 14: Financial development
Financial development Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma figures. 14
Slide 15: Glaston Group orders received
Glaston Group orders received Q4/19 orders received decreased from the lively Q4/18 Glasstec Orders received by product area quarter. Q4/19 (MEUR) 70 63,4 0,5 60 56,2 52,8 49,2 50 16,3 44,2 45,3 44,5 45,6 15,8 40 30 2,4 20 14,2 10 0 Heat Treatment Technologies Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/
Slide 16: Quarterly orders received by segment
Quarterly orders received by segment Glaston Bystronic glass 70,0 Pro forma Pro forma Pro forma Orders received pro forma, M€ Actual 10–12/19 10–12/18 Change % 1–12/19 1–12/18 Change % 60,0 29,5 Glaston 26,0 34,0 -24 % 85,7 107,6 -20 % Bystronic glass 23,2 29,5 -21 % 98,9 109,1 -9 % 29,7 50,0 27,4 G
Slide 17: Glaston Group's order book
Glaston Group’s order book Order book by product area 31 December 2019 120 0,7 1,8 104,2 99,9 3,9 100 88,8 87,0 84,5 78,9 79,1 79,5 80 31,2 60 41,8 40 20 0 Heat Treatment Technologies 03/18 06/18 09/18 12/18 03/19 06/19 09/19 12/19 Bystronic glass Technologies Order book at the end of the period, ME
Slide 18: Q4/19 net sales grew 5% on comparison period
Q4/19 net sales grew 5% on comparison period Net sales by product area Q4/19 (pro forma, MEUR) 70 0,0 60 58,4 54,2 55,4 54,5 13,4 50 47,3 47,3 44,9 44,3 16,9 40 30 20 2,3 14,7 10 0 Heat Treatment Technologies Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Bystronic glass Technologies Net sales, MEU
Slide 19: Quarterly net sales by segment
Quarterly net sales by segment 70,0 Pro forma Pro forma Pro forma Net Sales pro forma, M€ Actual 10–12/19 10–12/18 Change % 1–12/19 1–12/18 Change % 60,0 Glaston 21,3 27,8 -23 % 88,6 101,1 -12 % 34,6 Bystronic glass 26,0 17,1 52 % 116,0 100,7 15 % 50,0 29,4 29,8 31,9 Glaston Group 47,3 44,9 5% 204,6
Slide 20: Geographical distribution of net sales Q4/2019
Geographical distribution of net sales Q4/2019 China share of 40% 1-12/19 net sales EMEA less than 10%. 19,1 MEUR 25% 34% APAC Americas 12,0 MEUR 16,1 MEUR EMEA Americas APAC 20%(19%) 204.6 41% MEUR (54%) 36% (27%) 1-12/201920(1-12/18 in brackets) Glaston Corporation Q4 and 1–12/2019 Please Note! Al
Slide 21: Result and profitability
Result and profitability Comparable EBITA, MEUR 6,0 Pro forma Actual Pro forma Pro forma Pro forma 6,4 % 6,2 % 5,7 % 5,2 % Comparable EBITA, 5,0 EUR million 10–12/19 10–12/18 1–12/19 1–12/18 Glaston -0.1 3.0 1.6 7.6 Bystronic glass 2.5 -2.9 10.5 3.9 4,0 Total 2.5 0.1 12.1 11.5 3,0 2,0 1,0 • Glaston
Slide 22: Glaston Group's profitability development
Glaston Group’s profitability development Growth Pleae note! The picture is for illustrative purposes only Decrease EBITA HT Tech. BYGL Tech Services Change in fixed Divestments EBITA Q4/18 volume & volume & volume & costs (GLA & and other Q4/19 margin margin margin BYGL) Glaston Corporation Q4 and
Slide 23: Items affecting profitability
Items affecting profitability EBIT impact Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma figures. 23
Slide 24: Strong operational cash flow, net gearing decreased significantly
Strong operational cash flow, net gearing decreased significantly Net debt MEUR and net gearing [%] 100,0 54% 55% 53% 51% 90,0 48% 45% 80,0 38% 70,0 60,0 50,0 17% 40,0 30,0 20,0 10,0 0,0 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Cash, M€ Debt, M€ Net debt, M€ Net gearing% Quarterly operative cash flow
Slide 25: Near-term uncertainties and outlook
Near-term uncertainties and outlook Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma figures. 25
Slide 26: Uncertainties and factors affecting near future development
Uncertainties and factors affecting near future development ▪ In the fourth quarter of 2019 uncertainty continued, particularly in the European heat treatment machines market, but a slight recovery in demand was already apparent. ▪ Demand for insulating glass machines has continued to be good in all
Slide 27: Glaston's outlook for 2020
Glaston’s outlook for 2020 ▪ Glaston expects that 2020 comparable EBITA will improve from the 2019 level (2019 comparable pro forma EBITA EUR 12.1 million). Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma figures. 27
Slide 28: Board of directors' proposal on the distribution of profits
Board of directors’ proposal on the distribution of profits ▪ The Board of Directors proposes that, based on the balance sheet adopted for 2019, a return of capital of EUR 1,685,798 (1,157,067) be distributed, which is EUR 0.02 ((0.014 share-adjusted) per share. ▪ The return of capital will be paid
Slide 29: Thank you!
THANK YOU! GLASTON’s ANNUAL REPORT WILL BE PUBLISHED DURING WEEK 11. AGM arranged 2 April 2020 IR-contacts: Josephine.Mickwitz@glaston.net Glaston Corporation Q4 and 1–12/2019 Please Note! All figures in this presentation are pro forma figures. 29