Glaston Oyj · OMXHEX:GLA1V
Glaston Oyj — Glaston Oyj Abp — Q2 2019 Earnings Presentation
20 slides from Glaston Oyj's earnings presentation, August 2019
Slide 1: Glaston Oyj Abp Half-year review 1 Jan.–30 June 2019
Glaston Oyj Abp Half-year review 1 Jan.–30 June 2019 CEO Arto Metsänen & CFO Päivi Lindqvist Glaston Corporation Q2 and 1-6/2019
Slide 2: Q2 – busy quarter
Q2 – busy quarter ▶First quarter of integration. ▶Updated strategy and financial targets. ▶Rights issue a success. ▶In June Glaston arranged the biggest international conference in the glass industry, the Glass Performance Days, with more than 1,000 participants from around the world, as well as the
Slide 3: Glaston’s strategy and financial targets 2018–2021
Glaston’s strategy and financial targets 2018–2021 Strategic themes Growth in Core New growth opportunities Services Joint business model • Global market leader in core • Leveraging new market • Leveraging large combined • Target to support the businesses potential in mid-segment installed base Grou
Slide 4: Synergies from several sources
Synergies from several sources Revenue synergies Cost synergies Other benefits Larger Comprehen- Opportunity Knowledge Cross-selling Optimization of company sive services to create Decrease in Innovation and best of new sales, marketing size with equipment from one integrated manufacturing cost and
Slide 5: Integration progress during the quarter in brief
Integration progress during the quarter in brief ▶First quarter of integration. ▶New Executive Management Group appointed. ▶Strategy and financial targets updated. ▶Sales and services organizations combined and management structures created. ▶Decision regarding combining offices made, to be implemen
Slide 6: Operating environment
Operating environment Architectural glass ▪ The market uncertainty and trade policy tensions continued to slow down decision making regarding heat treatment machines in the EMEA region and China. ▪ Good demand in the US. ▪ Insulating glass equipment good in all regions, and is expected to continue a
Slide 7: Examples of orders received
Examples of orders received Glaston segment EMEA ▪ Several machine and upgrade orders from the UK, Slovenia, Russia and Finland. AMERICAS ▪ First Fusion type Jumbo FC-machine sold to the US markets. The largest machine so far sold by Glaston to the US market. ▪ Several ProL Zone and iControl control
Slide 8: Examples of orders received
Examples of orders received Bystronic glass segment EMEA ▪ Bystronic glass received several orders from the area, including one of the largest insulating glass lines ever made by Bystronic glass, a B'JUMBO insulating glass line order from Maxividro, a Portuguese glass processor. In addition, several
Slide 9: Financial development
Financial development Glaston Corporation Q2 and 1-6/2019
Slide 10: Orders received and orderbook (pro forma)
Orders received and orderbook (pro forma) Orders received by product area ▶April–June 2019 orders received totaled 44.5 (pro forma 52.8) MEUR. 1,5 ▶ Heat Treatment Technologies –product area orders decreased. 9,5 ▶ Bystronic glass decreased slightly. Demand for insulating glass machines was strong i
Slide 11: Net sales development
Net sales development Pro forma Net sales, M€ Pro forma Pro forma Pro forma Pro forma Pro forma 120,0 Net sales, M€ 4–6/2019 4–6/2018 1–6/2019 1–6/2018 2018 Glaston 23,8 25,6 44,6 50,3 101,1 100,0 Bystronic glass 34,6 29,8 58,1 59,2 100,7 Glaston Group 58,4 55,4 102,8 109,6 201,8 80,0 60,0 40,0 20,0
Slide 12: Net sales distribution
Net sales distribution Net sales by reporting segment Net sales by region Q2/19 Net sales by product area Q2/19 (MEUR) Q2/19 (pro forma, MEUR) 1,0 25 % 14,9 17,1 35 % 23,8 34,6 3,1 40 % 22,4 Glaston Bystronic glass Americas EMEA APAC Heat Treatment Technologies Bystronic glass Technologies Emerging
Slide 13: EBITA and profitability
EBITA and profitability Pro forma EBITA, M€, Pro forma EBITA, % Pro Pro Pro Pro 9,0 Comparable forma forma forma forma 8,0 EBITA, M€ 4–6/19 4–6/18 1–6/19 1–6/18 2018 6,3% EBIT 0,4 2,8 1,2 5,3 4,4 7,0 Items affecting 2,1 0,0 2,9 0,2 2,3 6,0 Comparable EBIT 2,5 2,8 4,1 5,5 6,7 5,0 6,2% Depreciation of
Slide 14: Glaston Group profitability development
Glaston Group profitability development HT Tech. HT Services GLA BYGL margin Margin Fixed costs revenue & volume recognition NB! The picture is for illustrative purposes Glaston Corporation Q2 and 1-6/2019
Slide 15: Items affecting comparability
Items affecting comparability Items affecting Total comparability Q1/19 Q2/19 1-6/19 2019-2021 Integration costs - 1,6 1,6 7-8 MEUR Transaction costs with 0,8 0,5 1,3 approx. 3 MEUR EBIT impact Total 0,8 2,1 2,9 One time financing costs with earnings impact related to refinancing arrangements - 0,9
Slide 16: Glaston segment
Glaston segment Glaston segment’s second quarter in brief: • Market uncertainty and trade policy tensions continued to slow down decision-making on heat treatment machines in the EMEA area and China. In North America, the market continued to be at a good level. • Development of net sales and profita
Slide 17: Bystronic glass segment
Bystronic glass segment Bystronic glass segment’s second quarter in brief: • Good activity in the insulating glass market, automotive glass market quiet. • Net sales and profitability impacted by number of project revenue recognitions. Pro forma Pro forma Pro forma Pro forma KEY FIGURES, MEUR 4–6/19
Slide 18: Net debt and cash flow
Net debt and cash flow Net debt MEUR and net gearing [%] 100,0 54% 55% • At the end of June the 51% 90,0 48% company had the 80,0 38% rights issue proceeds 70,0 in bank. 32M€ bridge 60,0 loan paid at beginning 50,0 17% of July. 40,0 • Q2 operating cash flow (-5,4 MEUR) 30,0 20,0 10,0 burdened by 0,0
Slide 19: Glaston’s outlook for 2019
Glaston’s outlook for 2019 ▪ Glaston Corporation expects 2019 comparable pro forma EBITA to be at the 2018 level or slightly improve (2018 comparable pro forma EBITA EUR 11.5 million). As the integration process is at an early stage, more uncertainty than usual is associated with the outlook and the
Slide 20: Thank you!
Glaston Group’s 3rd quarter financial report will be published on 28 October 2019 IR contact: Joséphine Mickwitz Tel.: +358 10 500 5070 Mobile: +358 400 784889 josephine.mickwitz[at]glaston.net Thank you! Glaston Oyj Abp Q2 ja 1-6/2019