Business
Glaston Oyj : Annual Review 2025
Glaston Oyj : Annual Review
About this update from Glaston Oyj
Annual Review 2025 Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 2 Table of Contents President and CEO's review 3 Corporate governance statement 2025 7 Remuneration report for governing bodies 2025 18 The board of directors' review 2025 25 Sustainability statement 2025 44 Consolidated financial statements 98 Consolidated statement of profit or loss 99 Consolidated statement of Comprehensive income 100 Consolidated statement of financial position 101 Consolidated statement of changes in equity 102 Consolidated statement of cash flows 104 Supplemental information for statement of cash flows 105 General accounting policies 106 Parent company financial statements 177 Income statement of the parent company (FAS) 177 Balance sheet of the parent company (FAS) 178 Parent company cash flow statement (FAS) 179 Notes to parent company financial statements (FAS) 180 Auditor's report 190 Assurance Report on the Sustainability Report (translation) 194 Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 3 From the President & CEO In 2025, investment conditions in our primary markets, Architecture and Mobility, were challenging. In this market environment, we maintained a strong focus on disciplined execution, effective cost management, and carefully selected growth opportunities. Due to global economic unpredictability and prolonged investment hesitation, our full-year order intake was down by 13%, which also affected net sales development. For the full year, net sales of EUR 208.8 million were recorded. The lower volume affected profitability development. However, supported by our cost control measures, comparable EBITA was EUR 14.0 million. To ensure profitable performance amid sustained low market activity, we launched a program in August to improve our efficiency and reduce costs. We sharpened our organizational model, clarified accountabilities, adapted our structure and ways of working to increase our efficiency in the prevailing market. Strict cost control measures are in place, and cost discipline is now better embedded in our operating model. Despite the challenges we currently face, I view this moment as an opportunity to develop the company to be more resilient and position Glaston for improved performance when market conditions begin to recover. As we aim for sustainable growth, our Services business is key, and we expect it to be an important growth and profitability driver across market cycles. Addressing new markets Expanding our addressable market is another central pillar of our growth agenda. Launched to the market in October, our second brand Uniglass is a concrete example of how we are expanding into new market segments and addressing customers with differentiated value propositions. Currently, Uniglass' offering covers tempering and insulating technologies, and the digital and scalable sales model enables fast and transparent interaction with customers. High employee engagement Safety at work and employee engagement are among our strategic targets. Our group-wide safety target is zero accidents. In 2025, our lost time injury frequency rate LTIFR was 5.8 (5.7), indicating that continued systematic safety work is required. Our employee engagement level scored to an all-time high of 78, exceeding our target of 75. This is a strong result and shows the resilience and commitment within our teams, even during challenging times. In 2025, we made significant improvements in topics related to workload balance and Diversity, Equity and Inclusion, DEI. Technology forerunner Glaston has a long tradition as a technology frontrunner. In 2025, we continued to build on this legacy, focusing on projects and innovations to automate our core products. We introduced the latest version of the Autopilot, which offers a fully automated tempering process for variable mixed production. Glaston's strategic targets and execution Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 4 Targets medium-term (3-5 years), emission targets by 2032 2025 2024 2023 2022 Annual average net sales exceeding the addressable equipment markets growth -4% -1% +3% +17% Comparable EBITA 10% 6.7% 7.0% 6.8% 6.4% Comparable ROCE above 16% 11.3% 12.6% 12.7% 10.5% Net Promoter Score above 40 37 64 62 53 Lost Time Accidents zero, measured by LTIFR 5.8 5.7 6.3 3.9 Employee engagement rate above 75 (out of 100) 78 76 70 70 GHG emissions reduction targets: Reduce absolute scope 1 and 2 GHG emissions by 50.4% by 2032, compared to the 2022 base year 1,498t CO 2 e 1,539 tCO 2 e 1,238 tCO 2 e 1,491 tCO 2 e Reduce the scope 3 GHG emission by 58.1% per square meter of sold machine processing capacity by FY2032, compared to the FY2022 base year (emission intensity) 0.00022 tCO 2 e/m 2 0.00017 tCO 2 e/m 2 0.00036 tCO 2 e/m 2 0.00043 tCO 2 /m 2 The new automatic trimming system, Autotrim, helps increase capacity and reduce manual labor in the laminating process by automating a typically manual step. In insulating glass technologies, demand for the ULTRA TPS ® line for triple TPS ® insulating glass units with ultra-thin center glass, developed well. Further, the MUNTIN'MASTER, an automatic muntin positioning station for TPS ® insulating glass units, repre- sents an important step towards fully automated production. Creating customer value Innovation is at the core of how we create value to our customers. By deepening our customer understanding, we not only enhance the customer experience but also strengthen the competitiveness of our own operations. Customer driven innovation is what enables us to anticipate future needs and differentiate our offering. By integrating lifecycle thinking, continuous innovation, and energy efficient technologies across our portfolio, we are building a strong foundation for long term, profitable, and sustainable growth. 2025 was a turbulent year, and I want to extend my sincere thanks to Glaston's team for their hard work and dedication throughout the year. I would also like to thank our customers, shareholders, and all our stakeholders for your continuous trust and support. We are clear about our direction, and confident in our ability to build strong performance going forward. Miika Äppelqvist President & CEO Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 5 Employees per region 31.12.2025, %, (FTE) Received orders by product area, € million Finland 25% Germany 38% Other EMEA 7% 2025 2024 177.4 202.7 Asia 24% Americas 6% Architecture Tempering and Laminating Technologies Insulating Glass Technologies Mobility, Display & Solar Service Unallocated and eliminations Net sales per region, % Order book, € million EMEA 45% Americas 31% APAC 24% 2025 61.3 2024 Architecture Mobility, Display & Solar 98.2 Comparable EBITA, € million 2025 2024 14.0 15.3 Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 6 Governance Corporate Governance Statement 2025 7 Remuneration Report for Governing Bodies 2025 18 Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 7 Corporate Governance Statement 2025 Glaston Corporation's administration and management are based on the Company's Articles of Association, the Finnish Companies Act and Securities Markets Act, and the rules and guidelines of Nasdaq Helsinki Ltd. In addition, Glaston complies with the Finnish Corporate Governance Code 2025 (also the "Corporate Governance Code"), which is publicly available at https://www.cgfinland.fi . This statement has been approved by the Company's Board of Directors BOARD OF DIRECTORS Business Functions Business Functions Business Functions Administration, Group functions CEO EXECUTIVE LEADERSHIP TEAM Audit Committee People and Remuneration Committee GENERAL MEETING OF SHAREHOLDERS Shareholders Governance model December 31, 2025 Auditor Internal Audit (also the "Board"). The Corporate Governance Statement is issued as a separate report and is published together with the financial statements, the Report of the Board of Directors and the Remuneration Report on the Company's website at https://glaston.net/governance/ . The information is also included in the Annual Review 2025. Shareholders' Nomination Board Internal control Risk Management Financial Reporting Duties and Responsibilities of Governing Bodies The General Meeting of Shareholders, the Board of Directors and the President & CEO, whose duties are determined mainly in accordance with the Finnish Companies Act, are responsible for the management of Glaston Group. The General Meeting of Shareholders elects the Board of Directors and the Auditors. The Board of Directors appoints the President & CEO, who is responsible for the Com-pany's daily operational management. The President & CEO is supported by the Executive Leadership Team. Board of Directors The Board of Directors is responsible for the appropriate arrangement of the Company's administration and operations. The Board of Directors consists of a minimum of five and a maximum of nine members elected by a General Meeting of Shareholders. The term of office of Members of the Board of Directors expires at the end of the next Annual General Meeting that follows their election. Under Recommendation 10 of the Corporate Governance Code, a majority of Members of the Board of Directors shall be independent of the Company, and at least two Members who are independent of the Company shall also be independent of the Company's significant shareholders. The shareholders' Nomination Board prepares proposals on the nomination and remuneration of Members of the Board of Directors to be dealt with by a General Meeting of Shareholders. The notice to attend an Annual General Meeting shall include a proposal on the composition of the Board of Directors. The personal information of the candidates shall be published on Glaston's website in connection with the notice to attend an Annual General Meeting. The Board of Directors shall elect from among its members a Chair and a Deputy Chair to serve for one year at a time. The Board of Directors has a quorum if more than half of its members are present at the meeting. The Board of Directors' tasks and responsibilities are determined by the Company's Articles of Association, the Finnish Companies Act and other Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 8 legislation and regulations. It is the responsibility of the Board of Directors to further the interests of the Company and all of its shareholders. The main duties and operating principles of the Board of Directors are defined in the board charter approved by the Board. It is the Board's duty to prepare the matters to be dealt with by a General Meeting and to ensure that the decisions made by a General Meeting are appropriately implemented. It is also the Board's task to ensure the appropriate arrangement of the control of the Company's accounts and finances. In addition, the Board directs and supervises the Company's executive leadership, appoints and dismisses the President & CEO and decides on the President & CEO's employment and other benefits. In addition, the Chair of the Board approves the salary and other benefits of the Executive Leadership Team. The Board approves the Executive Leadership Team's charter. The Board of Directors also decides on far-reaching and fundamentally important issues affecting the Group. Such issues are the Group's strategy, approving the Group's action plans and monitoring their implementation, monitoring the Group's financial development, acquisitions and the Group's operating structure, significant capital expenditures, internal control systems and risk management, key organizational issues and incentive schemes. The Board of Directors is also responsible for monitoring the reporting process of the financial statements, the financial and sustainability reporting processes and the efficiency of the Company's internal control, internal auditing, and risk management systems pertaining to the financial and sustainability reporting processes, monitoring the statutory audit of the financial statements and consolidated financial statements, monitoring the assurance of the sustainability statement, evaluating the independence of the statutory auditor or audit firm, particularly with respect to the provision of services unrelated to the audit, and preparing a proposal for resolution on the election of the auditor and assurance provider of the sustainability statement. The Board of Directors also regularly evaluates its own actions and working practices. Meetings of the Board of Directors are generally held in Helsinki. The Board of Directors also visits the Group's other operating locations and hold meetings there. The Board of Directors may also hold on-line meet- ings. The Board of Directors meets according to a timetable agreed in advance, generally approximately 10 times per year and additionally, if necessary. The Company's President & CEO and Chief Financial Officer generally attend the meetings of the Board. The Company's General Counsel acts as Secretary to the Board. If necessary, such as in connection with the handling of strategy or the annual plan, other Members of the Executive Leadership Team may also attend Board meetings. The Auditor attends all Audit Committee meetings and at least one Board meeting per year. Board of Directors in 2025 At the Annual General Meeting, held on April 16, 2025, the Members of the Board of Directors Veli-Matti Reinikkala, Sebastian Bondestam, Antti Kaunonen, Arja Talma, Tero Telaranta and Michael Willome were re-elected as members of the Board of Directors, and Tina Wu was elected as a new member of the Board of Directors. The Board of Directors was elected for a term of office ending at the closing of the next Annual General Meeting. In 2025, Veli-Matti Reinikkala served as Chair of the Board, and Sebastian Bondestam as Deputy Chair. In 2025, the Board evaluated its performance and procedures through a self-evaluation questionnaire. The evaluation, encompassed among other things, the diversity of the Board, the quality of the Board and committee work, and information sharing between the Board and the management. The board discussed and analyzed the evaluation results. Improvement proposals were agreed upon based on these discussions. In 2025, key themes on the Board's agenda were the recruitment of the new CEO, the approval and follow-up of the cost saving program, the finalization of the pre-processing equipment production transfer from Switzerland to China as well as review of the company's updated strategy. Diversity of the Board of Directors The Board has a diversity policy. According to the policy, when planning the composition of the Board, the Shareholder's Nomination Board takes into account the needs and development stages of the compa-ny's businesses as well as the areas of expertise required by the Board. Diversity ensures that the Board's overall competence profile effectively supports Glaston's current and future business development as well as the achievement of its strategic objectives. Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 9 Board diversity is examined from various perspectives. For Glaston, essential factors include complementary expertise among members, education and experience from different professions and industries, businesses at various stages of development, and leadership, as well as the personal qualities of the members. Diversity is further supported by experience in an international operating environment, expertise in the company's industry and stage of development, as well as consideration of age and gender distribution. Both genders must be represented on Glaston's Board of Directors. In 2025, the board had seven members of which two were female (ca. 29 percent) and five were male (ca. 71 percent). Board members brought together diverse professional experience and educational backgrounds, particularly in engineering and economics. The members of Glaston's Board hold, or have previously held, management and board positions in both listed and unlisted companies across sectors relevant to Glaston's business. The board also reflects diversity in background, with members born across three decades and three different nationalities represented. Glaston's objective is to achieve a more balanced gender distribution of the Board. To reach this goal, the Nomination Board seeks to ensure that representatives of both genders are involved in the search and evaluation process for new Board members. Independence of Members of the Board According to an independence assessment performed by the Company's Board of Directors, all of the Members of the Board were independent of the Company. Board Members Tero Telaranta and Sebastian Bondestam are dependent on a significant shareholder of the Company, Ahlstrom Capital B.V., whose ownership was 26.39% on December 31, 2025. The Members of the Board have no conflicts of interest between the duties they have in the Company and their private interests. As the secretary to the Board of Directors served General Counsel Kaisa Latva until July 31, 2025, and as of September 15, 2025, General Counsel Minna Toiviainen. The CV details of the members of the Board are available on the company website. The remuneration of the Board is described in the Remuneration Report 2025. Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 10 Members of the Board of Directors on December 31, 2025 Gender Member of the Board Female (F)/ Male (M) Member since Independence Year of birth Share ownership on December 31, 2025 Education Main occupation Veli-Matti Reinikkala M 2020, Chair of Independent of 1957 653,218 shares eMBA, Non- Board Professional the Board the company executive and of significant Director shareholders Sebastian Bondestam M 2018, Deputy Independent of the 1962 58,638 shares M.Sc.(Eng.) Georg Fischer, Head of Chair of the company, dependent BU Infrastructure Board on a significant shareholders Antti Kaunonen M 2018 Independent of 1959 99,940 shares D.SC.(Tech), Board member and the company MBA Advisor and of significant shareholders Arja Talma F 2021 Independent of 1962 36,937 shares M.Sc. (Econ.), Board Professional the company eMBA and of significant shareholders Tero Telaranta M 2017 Independent of the 1971 37,125 shares M.Sc.(Eng.), A.Ahlström Oy, Senior company, dependent M.Sc.(Econ.) Advisor on a significant shareholder Michael Willome M 2020 Independent of 1966 no shares lic. oec HSG, Synthomer Plc, Group the company M.A. Chief Executive Officer and of significant shareholders Tina Wu F 2025 Independent of 1974 no shares B.Sc. DuPont, Global Vice the company Economics, President & General and of significant MBA Manager, Adhesives & shareholders Fluids, Multibase and Tedlar Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 11 Meeting attendance of Members of the Board 2025 In 2025, Glaston's Board of Directors convened 13 times. The meeting attendance features of the internal control and risk management systems associated holder of the Company. As of April 16, 2025, the composition of the Audit Veli-Matti Reinikkala Sebastian Bondestam Antti Kaunonen Sarlotta Narjus 1) Arja Talma Tero Telaranta Michael Willome Tina Wu 2) 13/13 12/13 13/13 3/3 13/13 13/13 13/13 10/10 4/4 4/4 4/4 2/2 6/6 6/6 4/4 4/4 is reported in the table below. 1) Until April 16, 2025 2) As of April 16, 2025 Board meetings Audit Committee People and Remuneration Committee with the financial reporting process, monitors the statutory audit of the financial statements and the consolidated financial statements, monitors the assurance of the sustainability reporting, evaluates the independence of the statutory audit firm and prepares a proposal for the election and remuneration of the auditor and sustainability report assurance provider. Other duties include evaluating compliance with laws, regulations and corporate practices, overseeing significant litigation concerning Group Committee was the following: Arja Talma served as Chair, and Tero Telaranta and Tina Wu as members of the Audit Committee. In 2025, the Audit Committee met six times. The meeting attendance is reported in the table to the left. In 2025, the Committee focused on regular reviews of financial reporting, audit and risk management. In addition, the committdde closely followed the finalization of the sustainability statement. Committees of the Board of Directors Glaston's Board of Directors has two committees: the Audit Committee and the People and Remuneration Committee. The Board of Directors appoints the members and chairs of the committees, taking into account the expertise and experience required for the duties of the committees. The members of the committees are appointed for the term of office of the Board of Directors. The committees are preparatory bodies of the Board of Directors and do not have their own decision-making power. Audit Committee The Audit Committee assists the Board of Directors by preparing matters within the competence of the Board of Directors. The Committee reports to the Board of Directors on matters discussed and measures taken at least four times a year and makes proposals to the Board for decision-making, if necessary. The Board of Directors specifies the duties of the Audit Committee in a charter confirmed by the Board of Directors. The Audit Committee oversees the financial and sustainability reporting processes and monitors the effectiveness of internal control, internal audit and risk management systems. In addition, the Committee reviews the description of the main companies, and performing any other duties assigned to the Committee by the Board of Directors. The Audit Committee carries out a self-evaluation of its work annually, and the Chair of the Committee reports the results to the Board of Directors. Audit Committee in 2025 Until the Annual General Meeting on April 16, 2025, Arja Talma served as Chair, and Sarlotta Narjus and Tero Telaranta as members of the Audit Committee. The members of the Audit Committee were independent of the Company. Tero Telaranta is dependent on a significant share- People and Remuneration Committee The People and Remuneration Committee assists the Board of Directors by preparing matters within the competence of the Board of Directors. The Board of Directors is responsible for the duties it assigns to the Committee. The Board of Directors specifies the duties of the People and Remuneration Committee in a charter confirmed by the Board of Directors. Key duties of the Committee include preparing the remuneration policy and remuneration report for the Board and the Annual General Meeting, preparing salaries and other benefits of Glas-ton's CEO and other members of the Executive Leadership Team, preparing Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 12 the nomination of the CEO and other members of the Executive Leadership Team and their successors, and preparing proposals for Glaston's short-and long-term incentive schemes as well as monitoring the company's key personnel's successor and development plan. In addition, the Committee's duties include carrying out all other duties assigned to the Committee by the Board of Directors. The People and Remuneration Committee convenes at the invitation of the Chair, as necessary and at least twice a year. The Members of the Board of Directors and the CEO have the right to attend the meetings of the Committee. The People and Remuneration Committee regularly carries out self-evaluation of its work, and the Chair of the Committee reports the results to the Board of Directors. People and Remuneration Committee in 2025 Until the Annual General Meeting on April 16, 2025, Veli-Matti Reinikkala served as Chair, and Sebastian Bondestam, Antti Kaunonen and Michael Willome as members of the People and Remuneration Committee. After the Annual General Meeting, Veli-Matti Reinikkala contin- ued as Chair, with Sebastian Bondestam, Antti Kaunonen and Michael Willome as members of the committee. The members of the People and Remuneration Committee were independent of the Company. Sebastian Bondestam is dependent on a significant shareholder of the Company. In 2025, the People and Remuneration Committee met four times. The meeting attendance is reported in the table on page 11. On the Committee's agenda were the incentive program for top management and the outcome of the same, top management review and remuneration as well as a talent review follow-up. In accordance with its duties, the Committee also prepared the selection and appointment of Glaston's new President & CEO. In addition, the Committee prepared the remuneration report for the governing bodies. Shareholders' Nomination Board The Nomination Board's task is to prepare and present annually for the Annual General Meeting and, if necessary, for an Extraordinary General Meeting, a proposal concerning the number of Members of the Board of Directors, a proposal on the identities of the Members of the Board, and a proposal on the remuneration of the Members of the Board. An additional task of the Nomination Board is to seek candidates as potential Members of the Board of Directors. In its activities, the Nomination Board complies with current legislation, stock exchange rules applicable to the Company, and the Corporate Governance Code. The Nomination Board consists of four (4) members, all of whom are appointed by the Company's four largest shareholders, who appoint one member each. The Chair of the Com-pany's Board of Directors serves as an advisory member of the Nomination Board. The Company's largest shareholders entitled to appoint members to the Nomination Board are determined annually on the basis of the registered holdings in the company's shareholder register held by Euroclear Finland Ltd on the first working day in September of the year in question. The Nomination Board elects a Chair from among its members. The Nomination Board is established to serve until a General Meeting of Shareholders decides otherwise. The members of the Nomination Board are appointed annually and the term of office of the members expires when new members are appointed to the Board. The members of the Nomination Board shall be independent of the company, and no person belonging to the Company's executive leadership shall be a member of the Nomination Board. The Nomination Board shall submit its proposals to the Company's Board of Directors annually by the end of January preceding the Annual General Meeting. Proposals for an Extraordinary General Meeting shall be submitted to the Company's Board of Directors so that they can be included in the notice to attend the meeting. A decision of the Nomination Board shall be the opinion of a majority of the members of Nomination Board. If the votes are tied, then the Chair's vote shall be decisive. If the votes are tied in the election of the Chair, the member candidate for Chair nominated by the shareholder who had the largest number of shares when the Nomination Board was established shall be elected as Chair. A report on the activities of the Nomination Board shall be presented at the Annual General Meeting and published on the Company's website. Shareholders' Nomination Board 2025 Until August 31, 2025, the Shareholders' Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 13 Nomination Board comprised of Jyrki Vainionpää (Chair), as the representative nominated by Ahlstrom Capital B.V., Jaakko Kurikka as the representative nominated by Hymy Lahtinen Oy, Pekka Pajamo as the representative nominated by Varma Mutual Pension Insurance Company, and Esko Torsti as the representative nominated by llmarinen Mutual Pension Insurance Company. In accordance with its charter, the Nomination Board prepared its proposal concerning the Board composition and remuneration for the AGM 2025, and the AGM resolved in accordance with the proposal. Based on ownership on September 1, 2025, the Shareholders' Nomination Board comprised of Jyrki Vainionpää, as the representative nominated by Ahlstrom Capital B.V., Jaakko Kurikka, as the representative nominated by Hymy Lahtinen Oy, Pekka Pajamo, as the representative nominated by Varma Mutual Pension Insurance Company, and Esko Torsti, as the representative nominated by llmarinen Mutual Pension Insurance Company. Veli-Matti Reinikkala, Chair of the Glaston Corporation's Board of Directors, served as an advisory member of the Nomination Board. In its organizing meeting on September 24, 2025, the Nomination Board elected Jyrki Vainionpää amongst its members as the Chair. The Board met three times during 2025, and the average attendance of members was 100%. No fees were paid to the members of the Nomination Board. President & CEO The President & CEO handles the operational management of the Company in accordance with instructions issued by the Board of Directors. He is responsible to the Board of Directors for fulfilling the targets, plans and goals that the Board sets. The President & CEO is responsible for ensuring that the Company's accounting is in compliance with the law and that financial management has been arranged in a reliable manner. The President & CEO is supported by the Executive Leadership Team. On February 17, 2025, Glaston announced that President & CEO Toni Laaksonen had submitted his resignation from his position as the President & CEO of Glaston Corporation to join another company. On May 14, 2025, Glaston announced the appointment of Miika Äppelqvist as the new CEO & President of the company and he assumed his duties on June 1, 2025. Executive Leadership Team The Chair of the Company's Board of Directors appoints, on the proposal of the President & CEO, the Members of the Executive Leadership Team and confirms their remuneration and other contractual terms. The Company's President & CEO acts as the Chair of the Executive Leadership Team. The Executive Leadership Team handles the Group's and business function's strategy issues, capital expenditure, financial development, product policy, Group structure and control systems, and supervises the Company's operations. The Members of the Executive Leadership Team report to the President & CEO and assist him in implementing the Company's strategy, operational planning and management, and in reporting the development of business operations. The Executive Leadership Team meets under the direction of the President & CEO. In 2025, the composition of the Executive Leadership Team was the following: CEO Toni Laaksonen (until May 31, 2025), President & CEO Miika Äppelqvist (as of June 1, 2025), CSO Sasu Koivumäki (until May 9, 2025), EVP Sales & Service Americas Joe Butler (as of May 6, 2025), EVP Sales & Services EMEA & APAC Kimmo Kuusela (as of May 6, 2025), SVP People & Culture Riikka Laitasalo, General Counsel Kaisa Latva (until July 31, 2025), General Counsel Minna Toiviainen (as of September 15, 2025), CFO Päivi Lindqvist (until February 28, 2025), CFO Magnus Sjöblom (as of March 1, 2025), EVP Solutions & Operations Jens Mayr (as of July 1, 2025) EVP Services Robert Jenks (as of April 1, 2025). The Executive Leadership Team convened 11 times in 2025. Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 14 Executive Leadership Team on December 31, 2025 Gender Area of responsibility Member since Year of birth Female (F)/ Male (M) Education Share ownership on 31.12.2025* ) Miika Äppelqvist President & CEO Chair of the Executive Leadership Team as of June 1, 2025. Employed by the company since 2013. Member of the Executive Leadership Team since 2020 Other members of the Executive Leadership Team 1981 M M.Sc, Industrial engineering and management 13,666 shares Joe Butler EVP Sales & Service, Americas Employed by the company since 2021. Member of the Executive leadership Team as of May 6, 2025 1975 M B.Sc, Physics 1,702 shares Robert Jenks EVP Services Employed by the company and 1979 M M.Sc. (Business No shares Member of the Executive Leadership Administration), B.Sc. Team as of April 1, 2025 (Production & Operations Management) Kimmo Kuusela EVP Sales & Service, Employed by the company since 2005. 1980 M B.Eng, Automation Engineer 7,473 shares EMEA & APAC Member of the Executive Leadership Team Technology. as of May 6, 2025 Riikka Laitasalo SVP People & Culture Employed by the company and Member 1979 F M.Sc. (Econ.) No shares of the Executive Leadership Team since August 2023 Jens Mayr EVP Solutions & Employed by the company since 2019 and 1974 M M.Sc. Business Administration 5,931 shares Operations Member of the Executive Leadership Team as of July 1, 2025 Magnus Sjöblom Chief Financial Officer Employed by the company since 2022 and 1974 M M.Sc. (Econ.) No shares Member of the Executive Leadership Team as of March 1, 2025 Minna Toiviainen General Counsel Employed by the company and Member 1979 F Master of Laws, M.Sc. (Econ. No shares of the Executive Leadership Team since and Business Adm.) September 15, 2025 *) Share ownership includes also the ownership of Glaston Corporation shares by the entities controlled by the person in question. Remuneration of the CEO & President and the Executive Leadership Team is described in the Remuneration Report 2025 and on the company's website. Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 15 Main Features of Internal Control and Risk Management Pertaining to the Financial Reporting Process Internal control is an essential part of the Company's administration and management. Its aim is to ensure that the Group's operations are efficient, productive and reliable and that legislation and other regulations are complied with. The Group has specified Group-wide principles for the main areas of its operations that form the basis for internal control. The Group's internal control systems serve to provide reasonable assurance that the financial reports published by the Group give reasonably correct information about the Group's financial position. The Board of Directors and the President & CEO are responsible for arranging internal control. A report covering the Group's financial situation is supplied monthly to the Board of Directors. The Group's internal control is decentralized to different Group functions, which supervise compliance with instructions approved by the Board of Directors within their areas of responsibility. The Group's financial management and operational control are supported and coordinated by the Group Finance and controller network. The Group's financial reporting process complies with the Group's operating guidelines and standards relating to financial reporting. The interpretation and application of financial reporting standards has been concentrated in the Group Finance organization, which maintains operating guidelines and standards relating to financial reporting and is responsible for internal communication relating to them. The Group Finance organization also supervises compliance with these guidelines and standards. The Group's Finance organization regularly monitors the reporting of the Group's units and addresses deviations perceived in reporting and, if necessary, performs either its own separate internal control auditing or commissions the internal control auditing from external experts. Control of reporting and forecasting processes is based on the Group's reporting principles, which are determined and centrally maintained by the Group Finance's organization. The principles are applied consistently throughout the Group and a consist- ent Group reporting system is in place. In 2025, internal audit was performed by an outsourced service provider. Risk Management Risk management is an essential part of Glaston's management and control system. The purpose of risk management is to ensure the identification, management and monitoring of risks relating to business targets and operations. Risk management principles and operating practices have been specified in a risk management policy approved by the Company's Board of Directors. The principle guiding Glaston's risk management is the continuous, systematic and appropriate development and implementation of the risk management process, with the objective being the comprehensive recognition and appropriate management of risks. Glaston's risk management focuses on the risks relating to business opportunities and on risks that threaten the achievement of Group objectives in a changing operating environment. From the perspective of risk management, the Company has divided risks into four different groups: strategic risks, operational risks, financial risks and hazard risks. Risks relating to property, business interruption as well as liability arising from the Group's operations have been covered by appropriate insurances. Management of financial risks is the responsibility of the Group Treasury in the Group's parent company. Glaston's risk management policy includes guidelines relating to the Group's risk management. Risk management policy also specifies the risk management processes and responsibilities. Glaston's risk management consists of the following stages: risk recognition, risk assessment, risk treatment, risk reporting and communication, and control of risk management activities and processes. As part of the risk management process, the most significant risks and their possible impacts are reported to the Company's management and the Board of Directors regularly, based on which management and the Board are able to determine the level of risk that the Company's business functions are potentially ready to accept in each situation or at a certain time. It is the duty of Glaston's Board of Directors to supervise the implementation of risk management and to assess the adequacy and appropriateness of the risk management process and of risk management activities. In practice, risk management consists of appropriately specified tasks, operating practices and tools, which have been adapted to Glaston's business functions and Group-level Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 16 management systems. Risk management is the responsibility of the EVP of each Business Function and the head of Group-level function. Risk recognition is in practice the responsibility of every Glaston employee. The Group Legal function is responsible for guidelines, support, control and monitoring of risk management measures. In addition, the function consolidates Business Function and Group-level risks. The Group Legal function reports on risk management issues to the President & CEO and the Executive Leadership Team and assesses in collaboration with them any changes in the probabilities or the impacts of identified risks and in the level of their management. The Group Legal function also reports the results of risk management processes to the Board of Directors. Business Function and Group-level risk management is included in the annual Group-wide risk management process. The process can also always be initiated when required if substantial strategic changes requiring the initiation of the risk management process take place in a certain function. The management of each function identifies and assesses its operational risks and specifies risk management measures by which an acceptable level of risk can be achieved. Utilizing the risk management process, risks are systematically identified and assessed in each Business Function and at Group level. In addition, at each level actions are specified to achieve an acceptable risk level. Risks are consolidated at Group level. Action plans are prepared at each level of operations to ensure risks remain at an acceptable level. The Group's risks are covered in more detail in the Report of the Board of Directors on page 34. The management and organization of the Group's financial risks are presented in more detail in Note 5.4 of the consolidated financial statements on page 157. Information and Communications An effective internal control system requires sufficient, timely and reliable information to enable management to assess the achievement of the company's goals. There is a need for both financial and other information on the Company's internal and external events and activities. Employees have the opportunity to report, also through a whistleblowing channel, any questionable activity they observe. All external communications are handled in accordance with the Group's Disclosure policy. Auditing The Company has one Auditor, which must be an auditing firm authorized by the Finnish Patent and Registration Office. The Annual General Meeting elects the Auditor to audit the accounts for the financial year, and the Auditor's duties cease at the close of the subsequent Annual General Meeting. It is the Auditor's duty to audit the consolidated and parent company financial statements and accounting as well as the parent company's governance, and to give reasonable assurance that the financial statements as a whole are free from material misstatement. The Company's Auditor presents the audit report required by law to the Compa-ny's shareholders in connection with the annual financial statements and reports regularly to the Board of Directors. The Auditor, in addition to fulfilling general competency requirements, must also comply with certain legal independence requirements guaranteeing the execution of an independent and reliable audit. Audit 2025 At the 2025 Annual General Meeting, the accounting firm KPMG Oy Ab was re-elected as the Company's Auditor. The auditor with principal responsibility was Lotta Nurminen APA. Auditing units representing KPMG have served as the auditors of the Company's subsidiaries in most operating countries. In 2025, the Group's auditing costs totaled EUR 337 thousand, of which KPMG received EUR 304 thousand. In addition, auditing units belonging to KPMG have provided legal statements to a total value of EUR 53 thousand and other advice to Group companies to a total value of EUR 104 thousand. KPMG Oy Ab also carried out the assurance of the Company's sustainability reporting for the financial year 2025. Principles for Related Party Transactions Glaston complies with legislation concerning related party transactions and, in accordance with legislation and the Corporate Governance Code, ensures that requirements related to monitoring, assessing, decision-mak-ing and disclosure of related party transactions are complied with. Glaston's Board of Directors monitors and assesses the transactions of the Company and its related parties. Glaston has defined the parties that are related to the Company, and Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 17 Glaston's Communications Department maintains a list of individuals and legal persons who are considered to be related parties. Glaston maintains up-to-date guidelines on related party regulation and the monitoring thereof. Glaston may enter into transactions with its related parties as long as the transactions are part of Glas-ton's ordinary business operations and made on ordinary commercial terms and conditions. In such situations, Glaston's internal guidelines and decision-making processes are complied with. Related party transactions that deviate from Glaston's normal business operations or are not made on ordinary commercial terms are decided on by Glaston's Board of Directors, respecting provisions on disqualification. Related party transactions are regularly monitored in Glaston's finance function. Management personnel belonging to Glaston's related parties are obliged to notify Glaston's Related Party Administration without undue delay about related party transactions or planned related party transactions that they become aware of. Potential conflicts of interest are monitored through internal controls. Results of the monitoring of related party transactions are reported regularly to the Audit Committee of the Board of Directors. Glaston reports on related party transactions yearly in its financial statements. Related party transactions which are material to shareholders, and which deviate from normal business or are not made according to ordinary commercial terms and conditions are published in accordance with the Securities Market Act and the rules of Nasdaq Helsinki Ltd. Insider Administration In addition to the statutory insider regulations, Glaston complies with the insider guidelines of Nasdaq Helsinki Ltd as well as the internal guidelines adopted by Glaston at any given time. In accordance with the EU's Market Abuse Regulation, Glaston prepares and maintains a list of persons discharging managerial responsibilities as well as persons and entities closely associated with them. In Glaston Corporation, the persons discharging managerial responsibilities are the Members of the Board of Directors, the President & CEO, and the Chief Financial Officer. At least once a year, Glaston checks the information of persons discharging managerial responsibilities that have a duty to declare as well as persons and entities closely associated with them. Glaston reports the securities transactions of persons discharging managerial responsibilities and their related parties in accordance with the Market Abuse Regulation. Glaston does not maintain an insider list relating to permanent insiders. During the preparation of significant projects and events, the Company maintains project- and event-specific lists of insiders. Insiders are given a written statement of their inclusion in an insider register as well as guidelines on insider obligations. The Company's persons discharging managerial responsibilities, persons serving in certain key positions and persons participating in the preparation of financial reports must not trade in the Company's financial instruments during the 30-day period before the publication of interim reports and financial statement releases. With respect to project-spe-cific insiders, trading in the Company's financial instruments is prohibited until the cancellation or publication of the project. The Company's insider administration, its implementation and supervision are the responsibility of Group Legal function and the Communications Department. Glaston's General Counsel is responsible for the Company's insider issues. The Company's Communications Department is responsible for maintaining the list of insiders and for overseeing the restriction on trading and duty to declare. Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 18 Remuneration Report for Governing Bodies 2025 Introduction This Remuneration Report for the financial year 2025 (the "Remuner-ation Report") describes the remuneration for Governing Bodies of Glaston Corporation ("Glaston" or the "Company") as required by the Finnish Securities Market Act (746/2012, as amended), the Finnish Companies Act (624/2006, as amended) and the Finnish Corporate Governance Code 2025 (the "CG Code") issued by the Securities Markets Association. In addition to aforementioned, Glaston complies with other legal provisions concerning listed companies, Glas-ton's Articles of Association and the rules and guidelines issued by Nasdaq Helsinki Ltd. The Remuneration Report presents information on the remuneration of the Board of Directors and the President and CEO for the financial year 2025 and has been approved by the Board of Directors (also the "Board") of Glaston. The principles, decision-making processes, and practices for the remuneration of the Board of Directors and the President and CEO are set forth in the Remuneration Policy of Glaston (the "Remuneration Policy"). The Remuneration Policy and further information about remuneration is available at Glaston website: https://www.glaston.net/investors . The remuneration principles in Glaston are designed to attract and retain the Company's management persons who possess relevant skills, industry knowledge and experience to oversee the Company's achievement of its performance and strategy goals with emphasis on long-term shareholder value creation. The structure of the total remuneration is to be aligned with the long-term value of Glaston, the business strategy, financial results as well as the employee's contribution. Remuneration is based on predetermined and measurable performance and result criteria. The remuneration principles support the strategy of Glaston. The remuneration of the Board and the President and CEO follows the Remuneration Policy framework and principles. No temporary deviations from the policy have taken place during the financial year 2025. Further, no clawbacks of the remuneration have taken place during the said financial year 2025. The Company announced on 17 February 2025 that Toni Laaksonen had submitted a resignation from his position as the CEO of Glaston Corporation to join another company. Miika Äppelqvist was appointed as the new CEO of Glaston Corporation on May 14, 2025, and he took up the position on June 1, 2025. Development of remuneration in relation to the financial development of the Company This section presents the trend of remuneration of the President and CEO, and the Board, the average employee remuneration and company performance for the financial years 2021−2025. In addition, the section presents the remuneration of the Deputy CEO until July 31, 2024, as the Deputy CEO position was removed from the Company as of 1 August 2024. In accordance with the Remuneration Policy, part of the remuneration payable to the President and CEO may consist of short-term and long-term incentives. Criteria of such incentive plans are linked to the Company's performance (pay-for-performance) and thus incentive plans of Glaston ensure that the remuneration drives the best interest of the Company. With respect to the remuneration development for the financial years 2021-2025, the following shall be noted: Glaston is a global company and the remuneration levels vary significantly in markets where Glaston operates. Nevertheless, it is considered most transparent to compare the remuneration of the governing bodies with the remuneration of employees globally on group level. Thus, the figures on average employee remuneration below are based on data for all Glaston employees globally. Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 19 Glaston's revised strategy was announced in 2021. The execution has proceeded according to plans with no major structural changes since the acquisition of Bystronic glass in 2019. In the 2021−2023 period, only minor adjustment measures have been implemented. In 2024, the closure of production in Switzerland was announced and the transfer of all pre-processing equipment production from Switzerland to China was completed in 2025. Due to the weaker demand environment, actions to improve efficiency and reduce costs were taken in 2025. As of November 2025, temporary lay-offs have been Remuneration development implemented in Finland and as of December 2025 short time work in Germany. In the 2021−2025 period, Glaston's financial performance has been relatively stable despite the markets being more challenging in the 2023−2025 period. In 2022, strong development was noted, which was reflected in the CEO remuneration. In addition, as the company's CEO has changed twice in the 2021−2025 period, 2022 was the only year with full-year remuneration for only one person. Due to the nature of the Board's duties and responsibilities, the remuneration of the Board includes fixed remuneration only. Key financial metrics EUR 1000 2021 2022 2023 2024 2025 Net sales 182,662 213,520 219,708 217,945 208,846 Comparable operating result (EBIT) 6,569 9,917 11,418 11,020 9,487 Comparable EBITA 11,098 13,624 14,869 15,261 14,019 1 Remuneration for Anders Dahlblom. 2 Remuneration for Anders Dahlblom until 15 November 2023. 3 Remuneration for Toni Laaksonen from the period 12 August to 31 December 2024. 4 Remuneration for Toni Laaksonen from the period 1 January to 31 May 2025 and for Miika Äppelqvist from the period 1 June to 31 December 2025. 5 Deputy CEO's remuneration presented here for 2021-2024 is excluding reimbursement of costs EUR 2021 2022 2023 2024 2025 Annual remuneration of the Board 353,700 345,900 365,700 376,100 383,200 Annual remuneration of the President and CEO 330,622 1 644,244 472,977 2 116,129 3 368,292 4 Annual remuneration of the Deputy CEO 5 337,574 378,192 367,872 224,846 6 35,879 7 Annual remuneration of the Acting President and CEO 43,772 8 206,839 9 40,320 10 Average salary development 11 66,500 70,500 72,000 72,000 68,239 and expenses paid directly to third parties based on the expatriate agreement. Deputy CEO's role has been removed as of August 1, 2024. 6 Deputy CEO's remuneration from the period 1 January to 31 July 2024. The reimbursement of costs and expenses paid directly to third parties during this period amounting to in total EUR 54,995. Total remuneration thus amounting to EUR 279,841. Deputy CEO role was removed as of August 1, 2024 7 The Deputy CEO, who served in the role from 1 January to 31 July 2024, received short term incentive (STI) remuneration of EUR 26,208 and long term incentive (LTI) remuneration of EUR 9,671. The remuneration was paid in 2025. 8 Remuneration from period 15 November to 31 December 2023 to Interim CEO Antti Kaunonen. 9 Remuneration from period 1 January 2024 to 11 August 2024 to Interim CEO Antti Kaunonen. Excluding remuneration to Kaunonen as a member of the Board. 10 Interim CEO Antti Kaunonen received short term incentive (STI) remuneration of EUR 40,320 for the period from 1 January 2024 to 11 August 2024. The remuneration was paid in 2025. 11 Average salary development at Glaston is calculated by dividing salaries and rewards by the average number of employees during the financial year. Amounts do not include employer's social security costs. Glaston 2025 Governance Board of Directors' Review Financial Review Glaston Annual Review 2025 20 Remuneration of the Board of Directors The 2025 Annual General Meeting resolved that an annual fee of EUR 74,000 shall be paid to the Chair of the Board, EUR 45,000 to the Deputy Chair and EUR 35,000 to other Members of the Board. Further, the 2025 Annual General Meeting resolved that a member of the Board may choose to receive the annual fixed remuneration partly in company shares and partly in cash so that approximately 40% of the annual fixed remuneration is paid in Glaston Corporation's shares. The number of shares forming the above remuneration portion, which would be payable in shares, will be determined based on the share value in the stock exchange trading maintained by Nasdaq Helsinki Ltd, calculated as the trade volume weighted average quotation of the share during the one-month period immediately following the date on which the interim report of Janu- ary-March 2025 of the Company is published. A meeting fee of EUR 800 shall be paid to the Chair for meetings held in the Chair's home country and EUR 1,500 for meetings held elsewhere, and EUR 500 shall be paid to the other Members of the Board for meetings held in their home country and EUR 1,000 for meetings held elsewhere. Half of the normal fee shall be paid for a board meeting held per capsulam. In addition, it was decided that Board members shall be paid travel and accommodation expenses and other direct expenses arising from board work pursuant to the Company's normal practice. Furthermore, the members of the Audit and People and Remuneration Committees shall be paid a meeting fee of EUR 500 for each meeting attended in the home country of the respective member and EUR 1,000 for each meeting attended elsewhere. In addition to the meeting fee, the Chair of the Audit Committee shall be paid an annual fee of EUR 10,000 and the Chair of the People and Remuneration Committee shall be paid an annual fee of EUR 7,500. The members of the Board do not participate in any incentive plans. All the payments to the members of the Board during the financial year 2025 were in compliance with the Remuneration Policy.