Glaston Oyj · OMXHEX:GLA1V
Glaston Oyj — Q3 2020 Earnings Presentation
20 slides from Glaston Oyj's earnings presentation, Oct 27, 2020
Slide 1: Q3/20 interim report January–September 2020
Glaston Corporation 27.10.2020 Q3/20 interim report POSITIVE DEVELOPMENT IN INSULATING GLASS TECHNOLOGIES, HEAT TREATMENT TECHNOLOGIES AND SERVICES SLOWER THAN EXPECTED January–September 2020
Slide 2: Forward-looking statements disclaimer
This third quarter 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
Slide 3: Q3/20 in brief
Q3/20 in brief • Orders received EUR 33.3 (45.6) million o +39% from Q2/20, -27% from Q3/19 • Net sales EUR 35.9 (54.5) million • Comparable EBITA EUR 1.3 (3.1) million, i.e. 3.6 (5.7)% of net sales • Cash flow from operating activities EUR 0.6 (5.7) million 3 Glaston Corporation 27.10.2020 Q3/20 in
Slide 4: Operating environment Q3/2020: Architectural glass
ARCHITECTURAL GLASS OPERATING ENVIRONMENT Q3/2020 EMEA • Market uncertainty remains high and varies significantly CHINA AND REST OF ASIA AMERICAS by country • Continued recovery with • Slow recovery started • In Germany, market strong competition • COVID-19 still impacts the development positive and
Slide 5: Operating environment Q3/2020: Automotive glass
AUTOMOTIVE GLASS OPERATING ENVIRONMENT Q3/2020 • The automotive services market normalized in Europe, but the new equipment market was very slow due to overcapacity as a result of lower demand and high investments in previous years. In the APAC region automotive production was back to the previous y
Slide 6: Segment development Q3 in brief: Heat Treatment
SEGMENT DEVELOPMENT Q3 IN BRIEF Heat Treatment (HT) • Development slower than expected, weak order intake development. • Net sales impacted by low order intake in previous quarter, earlier postponements of deliveries and low services volume. • Further measures starting to adapt the Heat Treatment ca
Slide 7: Segment development Q3 in brief: Insulating Glass
SEGMENT DEVELOPMENT Q3 IN BRIEF Insulating Glass (IG) • Orders received grew 3% and comprised several important orders. The European Insulating glass equipment market normalized, Asia and Americas were still impacted by the pandemic and some recovery was seen in North America. • Insulating Glass equ
Slide 8: Segment development Q3 in brief: Automotive & ET
SEGMENT DEVELOPMENT Q3 IN BRIEF Automotive & ET (AET) • The automotive production restarted all over the world in the third quarter, and some increase in demand from the second quarter, particularly for services, was seen. • The low activity in Emerging Technologies market continued due to current m
Slide 9: Customer operations at good level
CUSTOMER OPERATIONS AT GOOD LEVEL Heat Treatment machines 9 Glaston Corporation 27.10.2020 Q3/20 interim report January–September 2020 Source: Glaston database
Slide 10: Focus on continuous development of core technology portfolio and R&D
Focus on continuous development of our core technology portfolio and R&D • Strong focus on product development in core product portfolio and R&D, among others: o New IG Upgrade Service portfolio introduced o Cup wheel technology for glass edge arrissing of architectural glass o Development of fully
Slide 11: Financial development
FINANCIAL DEVELOPMENT
Slide 12: Orders received grew clearly from the low Q2/20
Orders received grew clearly from the low Q2/20 (M€) Group orders received Orders received by product area Q3/20 (M€) 70 63,4 60 56,2 52,8 2,5 49,2 50 45,3 44,5 45,6 45,6 44,2 40 14,2 33,3 30 15,7 24,0 0,7 20 10 Heat Treatment Technologies Insulating Glass Technologies Auto & ET Services 0 Unallocat
Slide 13: Order book
Order book (M€) Group order book at the end of the period Order book by product area 30 September 2020 (MEUR) 120 30.09.19 (M€) 104,2 99,9 HT Tech 29,5 100 IG Tech 28,3 88,8 87,0 3,30,2 Auto & ET Tech 15,2 84,5 Services 4,7 78,9 79,1 79,5 76,4 3,6 80 Unall. & elim. 1,4 Total 79,1 21,8 60 49,1 47,8 4
Slide 14: Q3/20 net sales
Q3/20 net sales (M€) Group Net Sales Net Sales by product area 70 Q3/2020 (M€) 60 58,4 (M€) 54,2 55,4 Q3/19 54,5 HT Tech 13.2 48,9 IG Tech 15.4 50 47,3 47,3 46,9 44,9 44,3 -0,2 Auto & ET Tech 6.7 Services 17.6 8,6 40 Unall. & elim. 1.6 35,9 Total 54.5 13,3 30 20 2,6 11,8 10 0 Q1/18 Q2/18Q3/18Q4/18Q1
Slide 15: Geographical distribution of net sales Q3/2020
Geographical distribution of net sales Q3/2020 EMEA 23.7 MEUR 66% 21% Americas 13% 7.7 MEUR APAC 4.5 MEUR 15 Glaston Corporation 27.10.2020 Q3/20 interim report January–September 2020
Slide 16: Quarterly net sales by segment
Quarterly net sales by segment (M€) • The Heat Treatment segment’s net sales decreased by 37% mainly due 70,0 to the lower preceding quarters’ machines and upgrades order intake 60,0 and a clear decline in spare parts and field service revenue. 50,0 12,3 11,2 • Net sales in the Insulating Glass 4,3
Slide 17: Quarterly EBITA development by segment
Quarterly EBITA development by segment (M€) 4,0 • Third quarter profitability was clearly impacted by low sales volumes both in 3,0 1,0 new equipment and Services in the Heat 2,4 1,2 1,6 Treatment and Automotive & ET 0,6 2,0 2,4 segments. 2,0 0,7 1,4 • Although sales volumes were lower, 1,0 1,2 prof
Slide 18: Net debt and cash flow
Net debt and cash flow Debt, net debt [M€] and gearing [%] Only 2018 - restated for IFRS16 Operating cash flow by quarter [M€] January– Glaston Corporation 27.10.2020 Q3/20 interim 18 September report 2020
Slide 19: Glaston's outlook for 2020 remains unchanged
GLASTON’S OUTLOOK FOR 2020 REMAINS UNCHANGED • Glaston Corporation estimates that comparable EBITA for 2020 will decline from the 2019 level • The company’s current assessment is that fourth-quarter orders will improve from the third quarter but remain below the previous year’s levels • The lower th
Slide 20: Thank you!
> www.glaston.net Thank you! 20 Glaston Corporation 27.10.2020 Q3/20 interim report January–September 2020