Glaston January-December 2016 10 February 2017 Glaston Corporation - - PowerPoint PPT Presentation

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Glaston January-December 2016 10 February 2017 Glaston Corporation - - PowerPoint PPT Presentation

Jun 13, 2023 142 likes •323 views

Glaston January-December 2016 10 February 2017 Glaston Corporation Q4 in brief In the final quarter of the year, a clear pick- Orders received: up took place in the operating environment EUR 33.6 million, +39% Machine orders

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SLIDE 1

Glaston January-December 2016

10 February 2017

Glaston Corporation

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SLIDE 2

2

Q4 in brief

  • In the final quarter of the year, a clear pick-

up took place in the operating environment

  • Machine orders increased 68% compared to

the previous year

  • Some 35% of the whole year’s upgrade and

modernisation orders were received during the final quarter

  • Increased net sales and cost-saving

measures contributed to the improvement in the operating result

  • Cash flow from operating activities was

strong

Glaston Corporation

Orders received: EUR 33.6 million, +39% Net sales: EUR 35.1 million, +8% Comparable EBIT: EUR 2.7 million, +384% Order book: EUR 45.6 million, +18%

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3

2016 in brief

  • Broad uncertainty in the markets
  • Clear pick-up in the final quarter
  • Net sales fell short of the previous year;

comparable operating result was adversely affected by lower net sales and challenges associated with some customer projects

  • Cost-saving measures especially in Brazil,

China and Finland

  • Total impact of more than EUR 1.5 million on

the 2017 result

  • New strategy for 2016─2018
  • Glaston invests in emerging technologies;

the Board of Directors proposes that no return of capital be distributed

Glaston Corporation

Orders received: EUR 112.9 million, +5% Net sales: EUR 107.1 million, -13% Comparable EBIT: EUR 2.8 million, -55% Order book: EUR 45.6 million, +18%

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4

Operating environment

  • North America and the EMEA area remained

the largest markets

  • In the EMEA area, the number of new orders grew by

53% compared with the previous quarter

  • In the North American market, customers’ decision-

making slowed in the latter part of the year

  • In South America, the market continued to

be quiet

  • Outside Brazil a slight pick-up was seen towards the

end of the year

  • In the Asian market area, development

varied from country to country

  • In Australia and New Zealand, good development

continued

  • The Southeast Asia machine market was quiet, with the

exception of Vietnam

  • The Chinese market continued to be subdued

20 40 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016

Orders received, M€ Net sales, M€

Glaston Corporation

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5

Emerging Technologies

  • In the beginning of 2017 Glaston established the Glaston Emerging

Technologies unit

  • The unit offers consulting and planning services for smart glass and

energy glass production as well as solar energy applications. The unit will also sell, supply and service the machines and equipment required for production

  • In the Californian nanotechnology project Glaston is acting as the product

developer, designer, manufacturer and seller of production lines. The prototype line was completed during the end of year 2016

  • As the technology leader in its industry Glaston is engaged in discussions with

several potential partners on the development of new glass technologies

Glaston Corporation

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Digitalisation and IoT

Glaston Insight

  • In autumn, Glaston launched as the first in

its field a service, which enables remote real-time monitoring of production. The service works on a mobile device as well as with an online connection

  • Glaston Insight provides information on,

among other things, energy consumption, utilisation rate, quality, and maintenance needs

  • The service is available for all machines that

have an iControL system

Glaston Corporation

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7

Q4 net sales

Up +8% compared to last year

20.1 31.1 21.9 36.6 26.3 30.1 34.3 32.6 29.4 22.1 20.5 35.1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016

Glaston Corporation

M€

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8

Q4 comparable EBIT

Due to large number of deliveries good earnings development

  • 0,4

1.8 1.1 3.0 1.2 1.7 2.5 0.6 0.7

  • 0.4
  • 0.3

2.7

  • 2%

6% 5% 8% 5% 6% 7% 2% 2%

  • 2%
  • 1%

8%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016

EBIT, M€ EBIT%

Glaston Corporation

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9

Order book

18% higher than previous year

Glaston Corporation

39.0 32.7 41.7 56.0 52.8 56.0 47.8 38.5 34.5 40.9 46.0 45.6

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 M€

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10

Machines Q4

  • Markets picking up
  • Strong order intake: EUR 22.4 million
  • Net sales grew 24% to EUR 24.1 million
  • Efficiency measures completed
  • Factory in Brazil closed
  • Glaston strengthened its market position

due to the new FC™ and RC™ flat tempering lines

20 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016

Orders received, M€ Net sales, M€

Glaston Corporation

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11

Services Q4

  • Services’ markets picked up in the final

quarter

  • Good order intake; some 35% of the whole

year’s upgrade and modernisation orders were received during the final quarter

  • The order book grew by 57% compared to

the previous year

  • Net sales down 13%
  • Net sales were adversely affected by low

deliveries of modernisation products and pre- processing machines

10 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016

Orders received, M€ Net sales, M€

Glaston Corporation

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12

Net sales by region

Asia growing throughout the year, EMEA turned to positive in Q4

48.0 42.4 57.2 43.7 18.2 21.0 123.4 107.1 1-12/2015 1-12/2016

EMEA Americas Asia

M€

Glaston Corporation

M€

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Cash flow from operating activities

Strong cash flow from operating activities due to the good result and a reduction in working capital

0.2

  • 1.5

2.0 15.9

  • 3.3
  • 2.3

2.0 0.6

  • 1.8

2.0 4.3 8.9

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016

Glaston Corporation

M€

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Net debt

Strong cash flow resulted in negative net debt

57.7 8.6

  • 5.0
  • 1.2

6.1 5.2 7.4 10.9 11.4 7.7

  • 0.6

2012 2013 2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016

Glaston Corporation

M€

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Outlook

  • A higher order book than the previous year, positive market

development and the cost-saving measures undertaken create good conditions for the development of operations in 2017.

  • For the first quarter, a relatively small number of deliveries are

scheduled, as a result of which the comparable operating result for the period is expected to be lower than the corresponding period a year earlier.

  • Glaston expects the full-year comparable operating result to improve

from 2016. (In 2016 the comparable operating result was EUR 2.8 million.)

Glaston Corporation

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16

Glaston Corporation

  • A hotel and office building located in Beijing,

scheduled to be completed in 2018

  • 528 meters tall with 108-storeys
  • Upon completion will be the tallest building in

Beijing

  • Glaston’s customer SYP Group (Shanghai Yaohua

Pilkington Glass Group Co., Ltd) delivers the facade Low-E coated insulating glasses

  • The special glasses are processed with Glaston’s

technology

China Zun