Glaston January-June 2017 10 August 2017 Q2 in brief In the second - - PowerPoint PPT Presentation

Glaston January-June 2017

10 August 2017

Q2 in brief

▪ In the second quarter, the glass processing

market became more active to some extent

▪ New orders grew by 23% compared to the

previous quarter

▪ The order book was on the same level as last year ▪ Due to an increased number of deliveries, net

sales grew by 32%

▪ The comparable operating result improved

significantly

▪ Negotiations on the sale of the pre-processing

business in the USA and Canada were completed

Orders received: EUR 26.6 million, -7%*) Net sales: EUR 29.1 million, +32%*) Comparable operating result: EUR 1.4 million (EUR -0.4 million) Order book: EUR 41.2 million, +1%

*) when the sale of the pre-processing business in the USA and Canada are taken into account orders received were down -3% down and net sales up +35%

▪ In the EMEA area, overall market development was

good

▪

Decision-making slow in many countries, especially in Eastern Europe

▪

Growing demand in Central and Southern Europe ▪ In the Asian market, development was positive, but

varied from region to region

▪

In Australia and New Zealand markets remained good

▪

In China, the first signs of a pick-up in construction were perceptible ▪ The North American market slowed and

customers’ pruchasing decisions were delayed

▪ In the South American market, there were a slight

recovery from a very low level

Operating environment

20 40 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017

Orders received, M€ Net sales, M€

4

Q2 net sales

Up +32%*)

20.1 31.1 21.9 36.6 26.3 30.1 34.3 32.6 29.4 22.1 20.5 35.1 22.8 29.1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017

M€

*) Net sales were up 35%, if sales of the pre-processing business in the USA and Canada are taken into account

5

Q2 comparable operating result

Growth in net sales improved the result

• 0.4

1.8 1.1 3.0 1.2 1.7 2.5 0.6 0.7

• 0.4
• 0.3

2.7 0,0 1.4

• 2%

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

• 2%
• 1%

8% 0% 5%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017

EBIT, M€ EBIT%

6

Order book at the previous year’s level

39.0 32.7 41.7 56.0 52.8 56.0 47.8 38.5 34.5 40.9 46.0 45.6 45.1 41.2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017

M€

▪ In the second quarter, the Machines business

market was more active

▪ In the EMEA area, decision-making was slow in

many countries, but overall market development was stable

▪ The North American market levelled of. The South

American market picked up marginally

▪ In the Asian market area, development was

positive, but varied from region to region

▪ Order intake was EUR 15.1 million. The largest

• rders were received from the USA, New Zealand

and Australia

▪ Net sales totalled EUR 18.2 million, up 40% from

the corresponding period of the previous year

Machines Q2

20 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017

Orders received, M€ Net sales, M€

▪ A cautiously positive development of the Services

business market was evident

▪ The development of the EMEA area was double-

edged: on the one hand, Glaston received a high number of orders; on the other hand, significant slowdown in some countries

▪ The North American market continued to be

• challenging. In South America, the market

continued to be slow

▪ The markets in Asia picked up. Glaston closed a

few large modernisation deals

▪ The market for modernisation products picked up.

During Q2 the number of new projects nearly doubled compared with the first quarter

▪ Net sales were 13% up and totalled EUR 11.2

million

Services Q2

10 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017

Orders received, M€ Net sales, M€

19.6 25.3 11.5 7.4 20.4 19.3 10 20 30 40 50 60 EMEA Asia Americas

51.5 52.0

Net sales by area

EMEA net sales up +29%

1-6/2016 M€ 1-6/2017 M€

10

Cash flow from operating activities

Advance payments related to orders declined

0.2

• 1.5

2.0 15.9

• 3.3
• 2.3

2.0 0.6

• 1.8

2.0 4.3 8.9

• 3.8
• 2.2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017

M€

11

Net debt

Increased due to the growth in working capital

57.7 8.6

• 5.0
• 1.2

6.1 5.2 7.4 10.9 11.4 7.7

• 0.6

3.0 5.9

2012 2013 2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017

M€

12

Shareholders

Ahlström Capital acquired G.W.Sohlberg’s shares

30 June 2017 Numb mber ers of shares es % of shares es and voting ng rights Chang nge e May ->Ju June ne Ac Invest Eight B.V. 33,931,442 17.52 + 33,931,442 Hymy Lahtinen Oy 23,400,000 12.08 OP-Finland Small Firms Fund 13,918,323 7.19 +8,750,000 (+169,3%) Etera Mutual Pension Insurance Company 13,843,878 7.15

• 8,750,000 (-38,73%)

Varma Mutual Pension Insurance Company 12,786,643 6.60 Evli Finnish Small Cap Fund 9,732,139 5.02

• 58,000 (-0.59%)

Päivikki and Sakari Sohlberg Foundation 3,965,600 2.05 Hulkko Juha Olavi 3,530,000 1.82 320,000 (+9.97%) Oy Investsum Ab 3,358,000 1.73 Kirkon eläkerahasto 3,142,600 1.62 Total number of shareholders Q2/2017: 5,578 Q2/2016: 5,947

Outlook

▪ Good order book at start of the year, positive market development and the cost-saving measures undertaken create good conditions for the development of operations in 2017. ▪ We expect the full-year comparable operating result to improve from

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

Emerging technologies

15

Functional glass

Varsinainen yhtiökokous 2017

▪ Function ional al glass can, for example, ple, increase the livin ving g comfort t and safety y of both buildi ldings gs and users ▪ Adapt pts to its envir ironm nment nt ▪ Saves or generates ates energy gy ▪ Colle

• llect

cts information mation abou

• ut

t its surrou

• undin

ndings

16

▪ Glaston is actively seeking new business

• pportunities in emerging glass technologies

▪ The Emerging Technologies unit is involved in active discussions on solar energy solutions, demanding architectural solutions and automotive industry innovations ▪ Glaston’s partner, Heliotrope Technologies, is developing for the market a new electrochromic smart glass technology that regulates the heat and light transmissivity of glass precisely and quickly

The smart glass potential is huge

The global smart glass market was valued at USD 2,805 05.7 .7 million ion in 2016 6 and is expected to reach USD 9,983 83.0 .0 million ion by 2025, growing at a CAGR GR of 15.2% 2% from m 2017 to 2025

Source: Glass Magazine, National Glass Association, The Glass Association, IEEE, Hoover’s, Company Annual Reports, and Grand View Research

2136 2446 2806 3224 3710 4271 4925 5683 6561 7565 8694 9983

2000 4000 6000 8000 10000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 North America Europe Asia Pacific Latin America MEA

17

Daylighting & Glare control Privacy Room darkening Daylighting & Glare control Daylighting & Glare control Glare control

Source: Heliotrope Technologies

New smart glass technology

Heliotrope Technologies

▪ The competitive advantage of this new technology over solutions already on the market is significantly lower production costs and aesthetic qualities in terms of the colour and haze of the glass

El Elimi iminate Glare re Maxim ximize ze Day Dayligh ght Red educ uce Hea eat t Load El Elimi iminate Blin inds and Shades es

▪

In connection with the Glaston-organised Glass Performance Days conference a glass industry startup event was held for the first time

▪

The aim of the event is to accelerate the development of the sector and introduce new innovations to investors

▪

660 660 GPD D parti rtici cipants pants

▪

290 290 First st time me parti rticipa pants nts

▪

62 62 Step ep Cha hang nge parti rtici cipa pants ts

▪

35 35 Step ep Cha hang nge start rtup ups

▪

28 28 Start rtup up exhibi hibitors

• rs

▪

26 26 Indu dustry stry exhibito tors rs

▪

24 24 Pitchi ching teams ms

▪

13 13 Ment ntors

• rs

▪

12 12 Investor vestors

Step Change – first glass industry startup

event

www.glaston.net