Slide 1: Strong EBITA margin in third quarter, net sales up 29%
28 October 2021 Glaston Corporation Strong EBITA margin in third quarter, net sales up 29%margin
Slide 2: Content
Content • Q3/2021 highlights • Market review • Financial development • Outlook 2021 • Strategy 2021-2025
Slide 3: Q3 / 2021 Highlights
Q3 / 2021 HIGHLIGHTS Interim Report January-September 2021
Slide 4: Q3 2021 highlights
Q3 2021 highlights • Order intake increased by 36% to EUR 45.4 (33.3) million o Q3/2019 order intake was EUR 45.6 million • Net sales for the third quarter were EUR 46.4 (35.9) million, up 29% • Comparable EBITA margin improved significantly o Q3: 3.2 (1.3) million, i.e. 6.9 (3.6)% of net sales o th
Slide 5: Architectural market Q3
Architectural market Q3 EMEA Americas Asia • Good market activity continued • In North America, market recovery continued at a • In China, the market continued to perform • The positive development in the architectural good level well even though a slight slowdown was market increased demand for Hea
Slide 6: Automotive market Q3
Automotive market Q3 • Automotive production continued to face difficulties due to component shortages • The general market sentiment continues to be positive as the development in the automotive end market has a better outlook • Increasing activity in the automotive display market • Increasing inte
Slide 7: Glaston Segments Q3 2021 in brief
Glaston Segments Q3 2021 in brief Heat Treatment Insulating Glass Automotive & Display • Market recovery in the Heat Treatment • In the EMEA area demand was strong, in • Positive market development continued in segment continued strong North America market recovery continued. Q3, even though automot
Slide 8: Financial Development
FINANCIAL DEVELOPMENT
Slide 9: Solid order intake performance in all businesses, 36% growth in Q3
Solid order intake performance in all businesses, 36% growth in Q3 Group orders received, M€ and yoy% 9M 2021 orders received by product area, M€ and yoy% 108 % 28 % 44,1 50,5 251 % 54 % 10,7 158,5 37 % 52,5 102,9 6% Heat Treatment Technologies 52,1 175 % 65,9 Insulating Glass Technologies 3% 36 % 4
Slide 10: Net sales turned to 29% growth after 4 declining quarters
Net sales turned to 29% growth after 4 declining quarters Group net sales, M€ and yoy% 9M 2021 net sales by product area, M€ and yoy% 5% 33,2 20 % 49,2 -1 % 131,8 130,1 -35 % -14 % 7,4 41,4 29 % Heat Treatment Technologies 54,5 -19 % -14 % -12 % 47,3 46,9 48,9 -34 % 46,4 38,3 40,4 43,3 Insulating Gl
Slide 11: Americas and APAC returned to growth
Americas and APAC returned to growth 9M 2021 net sales by region M€, yoy% and share of total EMEA 67.0 MEUR 51% -10% 30% Americas 39.5 MEUR 18% +12% APAC 23.6 MEUR +5% 11 Interim Report January-September 2021
Slide 12: Record-high quarterly EBITA margin in Q3
Record-high quarterly EBITA margin in Q3 EBITA, M€ and yoy% EBITA% 6,9 % 5,9 % 5,7 % 5,4 % 5,5 % 5,2 % 5,1 % 4,8 % 4,3 % 4,3 % 3,6 % 34 % 7,6 5,7 145 % 3,1 -69 % 1% 3,2 2,5 -16 % 2% 2,0 2,3 -58 % 2,4 2,1 2,1 1,3 9M 2020 9M 2021 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Slide 13: Heat Treatment
Heat Treatment
Slide 14: Heat Treatment – Driving Group profit improvement with strong margin
Heat Treatment – Driving Group profit improvement with strong margin • Good order intake for seasonally low quarter MEUR 9M Chg* Q3 Chg* • Higher previous quarters’ order intake 2021 2021 boosting net sales further Order intake 65.5 +82% 18.3 +141% • EBITA and EBITA margin improved Order backlog 41
Slide 15: Insulating Glass
Insulating Glass
Slide 16: Insulating Glass – Back to growth and margin up from Q2
Insulating Glass – Back to growth and margin up from Q2 • Market continued performing well but due to MEUR 9M Chg* Q3 Chg* timing orders fell slightly short of the strong 2021 2021 Q3 2020 Order intake 69.8 +29% 19.3 -11% • Growing order backlog now showing also Order backlog 37.4 +98% as growth in
Slide 17: Automotive & Display
Automotive & Display
Slide 18: Automotive & Display – Back to break-even
Automotive & Display – Back to break-even • Market continues to be active. Order intake MEUR 9M Chg* Q3 Chg* reduced from previous quarter but was 2021 2021 clearly higher than Q3 2020 Order intake 22.6 +94% 7.5 +96% • Net sales on same level as Q3 2020. Order backlog 7.2 +250% Revenue very dependen
Slide 19: After strong Q2, working capital grew and lead to a slight increase in gearing
After strong Q2, working capital grew and lead to a slight increase in gearing Net debt, M€ Net gearing, % 55% 55% 53% 54% 52% 51% 52% 49% 49% 45% 42% 38% 32% 34% 43,8 41,0 17% 37,2 37,4 37,2 33,0 33,6 28,4 19,3 21,4 23,0 17,7 18,1 13,9 8,4 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4
Slide 20: Outlook 2021
OUTLOOK 2021
Slide 21: Glaston's outlook for 2021
Glaston’s outlook for 2021 • Based on the high order intake since the fourth quarter of 2020, Glaston Corporation estimates that its net sales in 2021 will improve from the level reported for 2020 and comparable EBITA will increase to EUR 10.5−12.5 million. • In 2020, Group net sales totaled EUR 170
Slide 22: Glaston Corporation strategy for 2021-2025
Glaston Corporation strategy for 2021-2025
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23 [Presentation name] [dd Month, yyyy]
Slide 24: Financial targets 2021−2025
Financial targets 2021−2025 • Annual average net sales growth (CAGR) clearly exceeding the addressable equipment market growth of more than 5%1) • Comparable operating margin (EBITA) of 10% at the end of the strategy period 2) • Comparable return on capital employed (ROCE) of 16% at the end of the s
Slide 25: Non-financial strategic targets 2021−2025
Non-financial strategic targets 2021−2025 • Customer satisfaction score (Net Promoter Score, NPS) above 40 • Group-wide safety target measured as zero lost time accidents (LTA) • Employee Engagement target above 75 (out of 100) • Glaston’s CO2 emissions (scope 1+2)4) in relation to net sales down by
Slide 26: Questions
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Slide 27: Financial reports in 2022
Financial reports in 2022 Financial Statement Bulletin 2021 14 February 2022 Interim report January-March 2022 28 April 2022 Half year financial report January-June 2022 4 August 2022 Interim report January-September 2022 27 October 2022
Slide 28: Forward-looking statements disclaimer
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 29: Thank you!
> www.glaston.net Thank you! IR-contact: pia.posio@glaston.net 29 Interim Report January-September 2021