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

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 increased 68% compared to the previous year Net sales: • Some 35% of the whole year’s upgrade and EUR 35.1 million, +8% modernisation orders were received during the final quarter Comparable EBIT: • Increased net sales and cost-saving measures contributed to the improvement in EUR 2.7 million, +384% the operating result • Order book: Cash flow from operating activities was Glaston Corporation strong EUR 45.6 million, +18% 2

2016 in brief • Broad uncertainty in the markets Orders received: o Clear pick-up in the final quarter EUR 112.9 million, +5% • Net sales fell short of the previous year; comparable operating result was adversely affected by lower net sales and challenges Net sales: associated with some customer projects EUR 107.1 million, -13% • Cost-saving measures especially in Brazil, China and Finland Comparable EBIT: o Total impact of more than EUR 1.5 million on the 2017 result EUR 2.8 million, -55% • New strategy for 2016─2018 • Order book: Glaston invests in emerging technologies; Glaston Corporation the Board of Directors proposes that no EUR 45.6 million, +18% return of capital be distributed 3

Operating environment • North America and the EMEA area remained 60 the largest markets o In the EMEA area, the number of new orders grew by 53% compared with the previous quarter In the North American market, customers’ decision - o 40 making slowed in the latter part of the year • In South America, the market continued to be quiet o Outside Brazil a slight pick-up was seen towards the 20 end of the year • In the Asian market area, development varied from country to country o 0 In Australia and New Zealand, good development continued Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Glaston Corporation o The Southeast Asia machine market was quiet, with the 2014 2015 2016 exception of Vietnam Orders received, M€ Net sales, M€ o The Chinese market continued to be subdued 4

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 Glaston Corporation several potential partners on the development of new glass technologies 5

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 Glaston Corporation • The service is available for all machines that have an iControL system 6

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 Glaston Corporation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 M€ 7

Q4 comparable EBIT Due to large number of deliveries good earnings development 8% 8% 7% 6% 6% 5% 5% 2% 2% 1.8 3.0 1.2 1.7 2.5 0.6 0.7 2.7 1.1 -0.3 -0,4 -0.4 -1% -2% -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Glaston Corporation 2014 2015 2016 EBIT, M€ EBIT% 8

Order book 18% higher than previous year 56.0 56.0 52.8 47.8 46.0 45.6 41.7 40.9 39.0 38.5 34.5 32.7 Glaston Corporation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 M€ 9

Machines Q4 • Markets picking up 40 • Strong order intake: EUR 22.4 million • Net sales grew 24% to EUR 24.1 million • Efficiency measures completed 20 o Factory in Brazil closed • Glaston strengthened its market position due to the new FC™ and RC™ flat 0 tempering lines Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Glaston Corporation 2014 2015 2016 Orders received, M€ Net sales, M€ 10

Services Q4 20 • 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 10 • The order book grew by 57% compared to the previous year • Net sales down 13% o Net sales were adversely affected by low 0 deliveries of modernisation products and pre- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 processing machines Glaston Corporation 2014 2015 2016 Orders received, M€ Net sales, M€ 11

Net sales by region Asia growing throughout the year, EMEA turned to positive in Q4 123.4 107.1 18.2 21.0 57.2 43.7 48.0 42.4 Glaston Corporation 1-12/2015 1-12/2016 M€ M€ EMEA Americas Asia 12

Cash flow from operating activities Strong cash flow from operating activities due to the good result and a reduction in working capital 0.2 2.0 15.9 2.0 0.6 2.0 4.3 8.9 -1.5 -1.8 -3.3 -2.3 Glaston Corporation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 M€ 13

Net debt Strong cash flow resulted in negative net debt 57.7 11.4 10.9 8.6 7.4 7.7 6.1 5.2 Glaston Corporation M€ -5.0 -1.2 -0.6 2012 2013 2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 14

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 Glaston Corporation from 2016. (In 2016 the comparable operating result was EUR 2.8 million.) 15

China Zun • 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 Glaston Corporation technology 16