Glaston Oyj · OMXHEX:GLA1V
Glaston Oyj — Q1 2024 Earnings Presentation
25 slides from Glaston Oyj's earnings presentation, May 3, 2024
Slide 1: Glaston Q1/2024: Net sales and comparable EBITA improved, markets remained challenging
Glaston Q1/2024: Net sales and comparable EBITA improved, markets remained challenging May 3, 2024 Antti Kaunonen, Interim CEO Päivi Lindqvist, CFO
Slide 2: Content
Content • Q1/2024 highlights • Market review • Financial development • Outlook 2024
Slide 3: Q1/2024 in brief
Q1/2024 IN BRIEF
Slide 4: Q1 2024 in brief
Q1 2024 in brief • Good first quarter despite the challenging market environment • The Architectural glass markets continued to slow down • The good demand for pre-processing technologies in China continued • Order intake was down 18% year-on-year mainly due to lower orders in tempering and pre-proc
Slide 5: Market environment in Q1
Market environment in Q1 EMEA Americas APAC • The overall slowdown in the • For Architectural, market activity was • For Architectural, the glass market Architectural market continued with slow continued to be soft increasing uncertainty in Europe mainly • Demand among residential glass • In China,
Slide 6: Strategy
Strategy • New medium-term (3−5 years) timeframe for achieving the strategic targets • The net sales and ROCE targets slightly updated o Glaston expects annual average growth to exceed the addressable equipment markets’ growth o The updated target for comparable return on capital employed (ROCE) is
Slide 7: Financial development
FINANCIAL DEVELOPMENT
Slide 8: New orders down by 18% compared to Q1 2023
New orders down by 18% compared to Q1 2023 Group orders received, MEUR and yoy% Q1 2024 orders received by product area, MEUR and yoy% Q3 2022 included -69% one 31 MEUR order of which 19 3,8 MEUR was cancelled in Q2 2% 2023. 18,9 3% 16,9 -29% 86,2 6,8 -4% 11% 59,0 -5% -39% 56,2 56,9 57,6 -18% 51,7 5
Slide 9: Net sales grew strongly in Insulating Glass and Mobility, Display & Solar technologies
Net sales grew strongly in Insulating Glass and Mobility, Display & Solar technologies Group net sales, MEUR and yoy% Q1 2024 net sales by product area, 70,0 MEUR and yoy% 60,0 -32% 10,2 -1% 50,0 17,8 40,0 35% 131% 20,0 30,0 0% 59,8 3% 12% 9% 8,5 -2% 59,7 53,5 55,2 53,5 55,8 52,3 51,3 47,9 20,0 Arch
Slide 10: Net sales grew in EMEA and especially APAC, Americas flat
Net sales grew in EMEA and especially APAC, Americas flat Q1 2024 net sales by region MEUR, yoy% and share of total EMEA 27.3 MEUR 49% 33% Americas +8% 18% 18.5 MEUR +0% APAC 10.1 MEUR +34% 10 January−March 2024 May 3, 2024
Slide 11: Comparable EBITA and EBITA% improved from Q1 2023
Comparable EBITA and EBITA% improved from Q1 2023 EBITA EBITA% 7,0 7,6 % 6,0 7,3 % 7,0 % 6,6 % 6,6 % 6,2 % 6,4 % 5,0 5,8 % 5,1 % 4,0 3,0 9% 58% 4,6 18% 2,0 4,2 -14% -2% 3,5 3,5 3,9 3,6 3,0 3,4 1,0 2,5 - Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 11 January−March 2024 May
Slide 12: Reporting segments
REPORTING SEGMENTS
Slide 13: Architecture – market slowdown continued
Architecture – market slowdown continued • Machine orders were down by 28% o Tempering and Laminating Technologies Q1 vs Q1 FY MEUR impacted the most by market uncertainty 2024 2023* 2023 o Despite slower market situation good order Order intake 34.7 -17.2% 165.8 intake for Insulating Glass machines
Slide 14: Mobility, Display & Solar – strong volume growth
Mobility, Display & Solar – strong volume growth • Order intake down 21%. Good level of orders for Q1 vs Q1 FY China pre-processing equipment, elsewhere quiet MEUR 2024 2023* 2023 • Strong net sales improvement, +57% from the low Order intake 11.6 -20.5% 53.5 level in Q1 2023 Order backlog 20.1 30.7
Slide 15: Negative operating cash flow due to seasonality and lower order intake
Negative operating cash flow due to seasonality and lower order intake Quaterly operating cash flow, MEUR 15 13,1 7,7 8,7 10 6,6 5,5 4,4 3,8 5 0,3 0,8 0 -5 -0,5 -0,5 -10 -6,8 -7,5 -15 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net debt, ME
Slide 16: Outlook
OUTLOOK 2023
Slide 17: Glaston's outlook remains unchanged
Glaston’s outlook remains unchanged Glaston started the year with a lower order backlog than the previous year. However, given the expected slowly improving market activity during the year, Glaston Corporation estimates that its net sales and comparable EBITA will stay at the same level or increase
Slide 18: Questions
QUESTIONS
Slide 19: Financial reports in 2024
Financial reports in 2024 Half-year financial report January-June 2024, on Friday, 9 August 2024 Interim report January-September 2024, on Wednesday, 30 October 2024
Slide 20: Forward-looking statements
This interim 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 subject to ris
Slide 21: Thank you!
> www.glaston.net Thank you! IR-contact: pia.posio@glaston.net
Slide 22: Appendix
APPENDIX
Slide 23: Architecture Americas and EMEA: US and EU architectural end-market indicators
Architecture Americas and EMEA US and EU architectural end-market indicators US housing starts annualized rate EU residential building permits in sqm Monthly 3-month average 2 000 120 Mar-24 Dec-23 100 # of starts in thousand Index (100=2021) 1 500 -15% 2% MoM 80 MoM 1 000 -4% YoY 60 -13% YoY 40 500
Slide 24: Architecture APAC and Mobility, Display, and Solar end-market indicators
Architecture APAC and Mobility, Display, and Solar APAC architectural and Mobility & Solar end-market indicators China newly started real estate construction China motor vehicle production Monthly 3-month average Million sqm useful floor space 300 5 Million motor vehicles Mar-24 Mar-24 250 4 -17% Mo
Slide 25: New order highlights
New order highlights • The TPS® technology continued to gain traction. Orders received for the first COMFORT TPS® Insulating Glass line and first VARIO TPS® line for thin quadruple Insulating Glass units (ultra-thin glass) • Based on the good experience with repeatability and reliable quality result