Glaston Oyj · OMXHEX:GLA1V
Glaston Oyj — Q2 2024 Earnings Presentation
26 slides from Glaston Oyj's earnings presentation, Aug 9, 2024
Slide 1: Glaston Q2/2024: Profitability supported by the service business, markets still challenging
Glaston Q2/2024: Profitability supported by the service business, markets still challenging August 9, 2024 Antti Kaunonen, Interim CEO Päivi Lindqvist, CFO
Slide 2: Content
Content • Q2/2024 highlights • Market review • Financial development • Outlook 2024
Slide 3: Q2/2024 in brief
Q2/2024 IN BRIEF
Slide 4: Q2 2024 in brief
Q2 2024 in brief • In H1/2024, the Lost-Time-Injury-Frequency Rate was 2.6 (10.1) and the number of accidents was 2 (8) • The market environment continued to be challenging • The Architectural glass market remained slow however the tempering market picked up from Q1 • The good demand for pre-process
Slide 5: Market environment in Q2
Market environment in Q2 EMEA Americas APAC • The overall slowdown in the • For Architectural, market activity • For Architectural, the glass market Architectural market continued improved. Demand among commercial continued to be soft • Demand for tempering equipment glass processors continued at a
Slide 6: Glaston plans to transfer all pre-processing production from Switzerland to China
Glaston plans to transfer all pre-processing production from Switzerland to China • The mobility glass segment’s growth is fastest in Asia while being modest in other regions • The aim of the plan is to streamline Glaston’s global production capabilities further, adjust capacity to meet customer dem
Slide 7: Sustainability
Sustainability • In H1/2024, the Lost-Time-Injury-Frequency Rate was 2.6 (10.1) and the number of accidents was 2 (8) • The 2023 carbon footprint calculations were finalized. Around 99% of Glaston’s emissions are generated in the company’s value chain (Scope 3). The most significant sources of emiss
Slide 8: Financial development
FINANCIAL DEVELOPMENT
Slide 9: Challenging market continued to impact order intake
Challenging market continued to impact order intake Group orders received, MEUR and yoy% H1 2024 orders received by product area, MEUR and yoy% -26% 21.0 Q3 2022 included one 31 MEUR order of which 5% 19 MEUR was cancelled 37.7 in Q2 2023. -16% 25.8 110.5 -12% -20% 96.8 11.8 86.2 -5% 11% -39% -6% Ar
Slide 10: Decline in architectural technologies drove down the Group net sales in Q2
Decline in architectural technologies drove down the Group net sales in Q2 Group net sales, MEUR and yoy% H1 2024 net sales by product area, MEUR and yoy% 110.0 90.0 -31% 19.5 4% 36.7 70.0 8% -1% 50.0 106.5 105.7 34.7 52% 16.5 3% 0% 9% 30.0 59.8 12% -10% 55.2 59.7 55.8 53.5 51.3 53.5 49.9 Architectu
Slide 11: Strong growth in APAC, Americas and EMEA declining
Strong growth in APAC, Americas and EMEA declining H1 2024 net sales by region MEUR, yoy% and share of total EMEA 46% 32% 48.9 MEUR Americas -10% 22% 33.9 MEUR -11% APAC 22.9 MEUR +60% 11 Half-Year Financial Report 2024 August 9, 2024
Slide 12: Q2 comparable EBITA almost at 2023 level, EBITA% up
Q2 comparable EBITA almost at 2023 level, EBITA% up EBITA EBITA% 10.0 9.0 7.6 % 7.3 % 7.0 % 8.0 6.5 % 6.6 % 6.6 % 6.2 % 6.4 % 6.0 % 5.8 % 7.0 6.0 5.1 % 5.0 4.0 7% 3.0 6.4 6.9 9% -2% 58% 18% -3% 2.0 4.2 4.6 3.5 3.4 3.9 3.6 3.3 1.0 2.5 3.0 0.0 H1 2023 H1 2024 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3
Slide 13: Reporting segments
REPORTING SEGMENTS
Slide 14: Architecture – Good profitability despite low net sales
Architecture – Good profitability despite low net sales • Machine orders were down by 15% Q2 vs Q2 H1 H1 o Tempering and Laminating Technologies orders up MEUR 2024 2023* 2024 2023* yoy and recovered strongly from the very low Q1 level Order intake 40.1 -8.0% 74.9 -12.5% o Order intake for Insulatin
Slide 15: Mobility, Display & Solar – profitability still modest and supported by higher volume
Mobility, Display & Solar – profitability still modest and supported by higher volume • Order intake up 2%. Machine orders flat. Services +8% Q2 vs Q2 H1 H1 MEUR • Pre-processing technologies orders were down globally. 2024 2023* 2024 2023* China was up yoy but not at the high levels of previous qua
Slide 16: Cash flow and gearing burdened by working capital increase and capital return in Q2
Cash flow and gearing burdened by working capital increase and capital return in Q2 Quaterly operating cash flow, MEUR 20.0 13.8 15.0 9.3 10.0 8.2 6.0 5.0 4.4 5.0 0.0 0.1 0.9 1.4 0.0 -5.0 -10.0 -6.2 -4.0 -6.8 -15.0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 20
Slide 17: Outlook
OUTLOOK 2024
Slide 18: Glaston specifies outlook for 2024
Glaston specifies outlook for 2024 Glaston Corporation specifies its outlook and estimates that its net sales will stay at the same level as in 2023. Comparable EBITA is estimated to amount to EUR 14.5−16.0 million. The net sales growth is curbed by the delayed market recovery whereas the planned st
Slide 19: Questions
QUESTIONS
Slide 20: Toni Laaksonen
Toni Laaksonen Glaston’s new President & CEO as of August 12, 2024
Slide 21: Financial reports in 2024
Financial reports in 2024 Interim report January-September 2024, on Wednesday, 30 October 2024
Slide 22: 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 23: Thank you!
> www.glaston.net Thank you! IR-contact: pia.posio@glaston.net
Slide 24: Appendix
APPENDIX
Slide 25: 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 Jun-24 Mar-24 100 # of starts in thousand Index (100=2021) 1,500 +3% +2% MoM 80 MoM 1,000 -5% YoY 60 -5% YoY 40 500
Slide 26: APAC architectural and Mobility & 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 Jun-24 Jun-24 250 4 +21% Mo