Glaston Oyj · OMXHEX:GLA1V
Glaston Oyj — Investor Day (November 2018)
15 slides from Glaston Oyj's investor day presentation, Nov 9, 2018
Slide 1: Glaston Capital Markets Day 2018
Glaston Capital Markets Day 2018 9.11.2018 9/11/2018 GLASTON CMD 2018
Slide 2: Financials in a nutshell
Financials in a nutshell CFO, Päivi Lindqvist 9/11/2018 GLASTON CMD 2018 2
Slide 3: Annual net sales 2012-2018
Annual net sales 2012-2018 122,2 124,5 123,4 125 115,6 19,2 107,1 109,7 32,5 103,0 34,4 100 15,6 17,0 10,8 42,7 75 13 % 50 5% 104,2 -13 % 4% -2 % 20 % 92,1 90,2 94,1 92,2 -2 % 87,8 73,0 25 0 2012 2013 2014 2015 2016 2017 09/2018 L12M HT Technologies, ET & Services Pre-Processing, Tools & Other 2012-
Slide 4: Annual net sales 2012-2018
Annual net sales 2012-2018 125 100 75 13 % 50 5% 104,2 -13 % 4% -2 % 20 % 92,1 90,2 94,1 92,2 -2 % 87,8 73,0 25 0 2012 2013 2014 2015 2016 2017 09/2018 L12M HT Technologies, ET & Services 2012-2016 figures as they were reported 2017 & 2018 according to IFRS15 9/11/2018 GLASTON CMD 2018
Slide 5: Annual EBIT and EBIT% 2012-2018
Annual EBIT and EBIT% 2012-2018 8 6,0 % 4,9 % 4,6 % 5,0 % 6 3,9 % 4,1 % 4,0 % 2,6 % 3,0 % 4 1,7 % 2,0 % 6,1 4,9 5,0 2 4,2 1,0 % 2,8 2,1 0,0 % 0 -1,0 % -3,4 -2,0 % -2 -3,0 % -2,9 % MEUR -4 -4,0 % *) *) *) *) **) **) 2012 2013 2014 2015 2016 **) 2017 09/2018 L12M EBIT EBIT% *) EBIT before extraordinar
Slide 6: Annual ROCE% 2012-2018
Annual ROCE% 2012-2018 15 10 5 9,8 10,0 9,2 7,9 6,0 4,6 0 -5 -12,6 -10 -15 2012 2013 2014 2015 *) 2016 2017 09/2018 *) Continuing operations 9/11/2018 GLASTON CMD 2018
Slide 7: End of 2017 balance sheet
End of 2017 balance sheet Cash Debt 12,4 13,3 Goodwill Equity 30,6 37,1 Fixed assets 17,9 Working capital Working capital 44,3 33,0 MEUR 6,6 0,9 -11,3 Assets Liabilities NWC Net assets (excl. Net debt goodwill) 9/11/2018 GLASTON CMD 2018
Slide 8: Typical machine delivery project
Typical machine delivery project ▪ Project revenue recognized using POC method Revenue and cost Month 7 Month 9 Installation Acceptance Month 1 start ▪ Accrued cost compared to budget determine the Down payment Month 6 100% Order recorded Delivery 90% percentage of completion Project start 80% 85% ▪
Slide 9: Cash flow seasonality
Cash flow seasonality 10 8,9 8 7,3 6 4,3 4 2,0 5,2 2,0 2 4,8 4,6 2,2 -1,2 1,3 -0,7 0 -2,2 -2,0 -2 -3,4 -1,8 -4,4 -2,2 -5,9 -4 -3,8 -6,6 -6 MEUR -8 -7,4 -10 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Change in net working capital Net cash flow from operati
Slide 10: Our financial targets published in 2016 remain unchanged
Our financial targets published in 2016 remain unchanged • Annual growth of net sales exceeding market growth (CAGR) • Comparable operating margin (EBIT) above 8% at the end of the period • Return on capital employed (ROCE) of more than 20% at the end of the period • In addition, Glaston seeks growt
Slide 11: Strategic targets
Strategic targets Annual net sales growth to exceed market growth • Higher than market Services growth driving Glaston growth above market • Upside potential from Emerging Technologies • Flat glass demand growth expected at 4.3% annually Upside Upside potential potential > Market ~Market growth grow
Slide 12: Strategic targets
Strategic targets EBIT margin to exceed 8% and ROCE% to exceed 20% • Profitability boosted by increased share of higher margin Services business and gross margin improvement in Heat Treatment Technologies as well as fixed cost growth clearly below net sales growth • Emerging Technologies margin high
Slide 13: Dividend policy
Dividend policy 30-50% of the comparable earnings per share • High number of shares (193.6 million) and earnings volatility have lead to inconsistent profit distribution • Glaston is exploring the possibility of reducing the number of shares by a reverse split with the objective to • increase intere
Slide 14: 2019 reporting changes
2019 reporting changes • IFRS 16 – Leases to be introduced from the beginning of 2019 • The standard removes the distinction between finance and operating leases • All leases will be recorded on the balance sheet as assets and liabilities at the discounted value of the lease payments • Rent expense
Slide 15: Our financial targets published in 2016 remain unchanged
Our financial targets published in 2016 remain unchanged • Annual growth of net sales exceeding market growth (CAGR) • Comparable operating margin (EBIT) above 8% at the end of the period • Return on capital employed (ROCE) of more than 20% at the end of the period • In addition, Glaston seeks growt