Glaston Oyj · OMXHEX:GLA1V
Glaston Oyj — Q4 2022 Earnings Presentation
26 slides from Glaston Oyj's earnings presentation, Feb 9, 2023
Slide 1: Strong profit and cash flow in the final quarter
9 February 2023 Anders Dahlblom, CEO Päivi Lindqvist, CFO Strong profit and cash flow in the final quarter
Slide 2: Content
Content Q4/2022 highlights and key figures Strategy and sustainability Financial development Outlook 2023
Slide 3: Q4 2022 highlights
Q4 2022 highlights • Continued strong demand for Glaston’s products and services • Good quarter for Services business with strong growth in spare parts and field services • Net sales and profitability increased • Strategy execution proceeding in line with plans • Good progress in sustainability, CO2
Slide 4: Key Figures
Key Figures MEUR 10-12/2022 10-12/2021 Change% 1-12/2022 1-12/2021 Change% Order intake 51.7 59.1 -12.5% 253.0 216.2 17.0% Order backlog 138.3 94.8 45.8% 138.3 94.8 45.8% Net sales 59.8 52.6 13.8% 213.5 182.7 16.9% Comparable EBITA 4.2 3.5 20.6% 13.6 11.1 22.8% EBITA% 7.0% 6.6% 6.4% 6.1% 9 February
Slide 5: Market environment in Q4
Market environment in Q4 EMEA Americas APAC • For Insulating Glass, the strongest • For Insulating Glass, demand picked • In China, the architectural market market, although a weaker quarter in up slowed down order intake • For Heat Treatment, good demand • For Insulating Glass, demand for • For Hea
Slide 6: Strategy execution proceeding as planned
Strategy execution proceeding as planned • New offering development making progress, research and product development expenditure increased to 4.3% (3.8%) of net sales • Glaston entered the market of tempering technologies for solar panel production with a new product launch. Five solar lines will b
Slide 7: Strategic targets 2021–2025: performance in 2022
Strategic targets 2021–2025: performance in 2022 Financial targets 2022 2021 Annual average net sales clearly exceeding the +17% +7% addressable equipment market growth EBITA 10% 6.4% 6.1% ROCE 16% 10.5% 6.1% Non-financial targets 2022 2021 Net Promoter Score ˃40 53 - Lost Time Accidents zero, LTIFR
Slide 8: Sustainability highlights
Sustainability highlights • Group safety awareness continues to improve • Glaston’s first emission reduction target was achieved in 2022 o investments in energy efficiency in manufacturing operations and increasing the share of renewable electricity • Currently, Glaston working on setting a new emis
Slide 9: Financial development
FINANCIAL DEVELOPMENT
Slide 10: Q4 orders declined after record-high Q3, full-year +17%
Q4 orders declined after record-high Q3, full-year +17% Group orders received, MEUR and yoy% FY 2022 orders received by product area, MEUR and yoy% 7% 10 % 72,5 66,0 -14 % 14,3 17 % 253,0 41 % 216,2 99,3 90 % Heat Treatment Technologies 13 % 25 % -13 % 86,2 Insulating Glass Technologies -13 % 64,5 5
Slide 11: Net sales caught-up from weaker Q3, full-year +17%
Net sales caught-up from weaker Q3, full-year +17% Group net sales, MEUR and yoy% FY 2022 net sales by product area, MEUR and yoy% 16 % 55,7 14 % 76,4 83 % 9% 17 % 21,1 63,1 213,5 182,7 Heat Treatment Technologies Insulating Glass Technologies 37 % 29 % 24 % 14 % 3% Automotive & Display Technologies
Slide 12: All regions growing over 10% year-on-year
All regions growing over 10% year-on-year 12m 2022 net sales by region MEUR, EMEA yoy% and share of total 112.2 MEUR 53% +17% 29% Americas 60.9 MEUR 19% +10% APAC 40.4 MEUR +28% 12 January-December 2022 9 February 2023
Slide 13: EBITA margin reached first time 7% in Q4
EBITA margin reached first time 7% in Q4 EBITA EBITA% 6,9 % 7,0 % 16,0 6,6 % 6,6 % 6,6 % 6,4 % 6,1 % 14,0 5,4 % 5,5 % 5,1 % 5,1 % 12,0 10,0 8,0 23 % 6,0 13,6 11,1 4,0 68 % 68 % 48 % 21 % 2,0 -23 % 4,2 2,1 2,1 2,4 3,2 3,5 3,5 3,5 0,0 2,5 FY 2021 FY 2022 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 14: Reporting segments
Reporting segments
Slide 15: Heat Treatment – step-up in volume & margins
Heat Treatment – step-up in volume & margins Q4 2022 MEUR FY 2022 Chg* Q4 Chg* • Strong demand in the final quarter, orders up 8% 2022 • Q4 net sales recovered back to a good level Order intake 95.1 6.9% 25.4 8.0% • Strong growth in spares and field service boosted Order backlog 54.1 18.5% 54.1 18.5
Slide 16: Insulating Glass – excellent end of the year again
Insulating Glass – excellent end of the year again Q4 2022 MEUR FY 2022 Chg* Q4 Chg* • Q4 order intake was down 23% mainly due to weaker 2022 EMEA after record-high Q3 Order intake 126.6 33.3% 19.4 -22.9% • Excellent project execution leading to high net sales and +10% growth Order backlog 78.7 104.
Slide 17: Automotive & Display – mix impacts weakened profitability
Automotive & Display – mix impacts weakened profitability Q4 2022 MEUR FY 2022 Chg* Q4 Chg* • Very low machine orders as customers postponed 2022 decisions, services strong +52% against weak Order intake 30.4 -2.4% 6.6 -34.2% comparison • Machines with 87% net sales growth on the back of Order backl
Slide 18: Excellent operating cash flow, gearing down to 19%
Excellent operating cash flow, gearing down to 19% Quarterly operating cash flow, MEUR 8,8 7,7 8,7 5,7 6,6 5,5 3,5 4,4 3,8 1,8 0,6 -0,3 -0,5 -3,1 -5,4 -6,8 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Net debt, M€ Net
Slide 19: Continued progress in EPS and capital return
Continued progress in EPS and capital return Comparable EPS, € Capital return per share, € 0,07 0,05 0,04 0,03 0,02 0,01 2020 2021 2022* 19 January-December 2022 9 February 2023 * Capital return is the proposal by the Board of Directors
Slide 20: Glaston taxonomy alignment 2022
Glaston taxonomy alignment 2022 • Glaston’s businesses enabling climate change mitigation are: In 2022 taxonomy o Insulating glass technologies and related services, which aligned businesses enable energy efficiency of buildings 43% of total net sales o Glass processing technologies and related serv
Slide 21: Outlook
OUTLOOK 2023
Slide 22: Outlook 2023
Outlook 2023 Glaston entered 2023 with an order backlog 46% higher than in the previous year. This provides a strong starting point for 2023 and supports the company’s net sales and profitability development. Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2023
Slide 23: Questions
QUESTIONS
Slide 24: Financial reports in 2023
Financial reports in 2023 Interim report January-March 2023, on 26 April 2023 Half year financial report January-June 2023, on 1 August 2023 Interim report January-September 2023, on 26 October 2023
Slide 25: 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 26: Thank you!
> www.glaston.net Thank you! IR-contact: pia.posio@glaston.net 26 January-December 2022 9 February 2023