Glaston Oyj : Q1/2024 presentation

May 3, 2024

Antti Kaunonen, Interim CEO

Päivi Lindqvist, CFO

Content

• Q1/2024 highlights
• Market review
• Financial development
• Outlook 2024

Q1/2024

IN BRIEF

Q1 2024 in brief

• Good first quarter despite the challenging market environment
• The Architectural glass markets continued to slow down
• The good demand for pre-processing technologies in China continued
• Order intake was down 18% year-on-year mainly due to lower orders in tempering and pre-processing technologies
• Net sales were up 9% to EUR 55.8 million
• Comparable EBITA improved and was EUR 3.6 million, EBITA margin 6.4%
• New CEO appointed: Toni Laaksonen expected to join by end of September

4

January−March 2024

May 3, 2024

Market environment in Q1

EMEA		Americas		APAC

• The overall slowdown in the

Architectural market continued with increasing uncertainty in Europe mainly due to higher financing costs. The customers' lower machinery utilization also affected investments

• The Automotive market continued to

be slow

• In Services markets, steady demand for spare parts and field services

• For Architectural, market activity was

slow

• Demand among residential glassprocessors slowed down, whereas

demand among commercial glass processors continued at a good level

• Positivemarket traction for Insulating Glass Technologies
• For Automotive, the market saw a slow

start to the year

• For Services, demand was modest

• For Architectural, the glass market continued to be soft
• In China, low demand for tempering

andlaminating equipment whereas demand for high-end Insulating Glass

Technologies was strong

• For Automotive, and China mainly, the

move to electric vehicles supported market growth

• In Services, demand for upgrades improved compared to the previous quarter

5

January−March 2024

May 3, 2024

Strategy

• New medium-term (3−5 years) timeframe for achieving the strategic targets
• The net sales and ROCE targets slightly updated
  o Glaston expects annual average growth to exceed the addressable equipment markets' growth
  o The updated target for comparable return on capital employed (ROCE) is above 16%
• The target for the comparable operating margin (EBITA) of 10% unchanged
• No major changes for the Must-win projects and Cornerstone initiatives
• No lost-time accidents in Q1

6

January−March 2024

May 3, 2024

FINANCIAL DEVELOPMENT

New orders down by 18% compared to Q1 2023

Group orders received, MEUR and yoy%

Q3 2022 included one 31 MEUR order of which 19 MEUR was cancelled in Q2 2023.

				86,2
	59,0				-4%		-5%		-39%	11%
		56,2		56,9			57,6	-18%
		51,7		53,6		52,2
											46,6

Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024

8

January−March 2024

May 3, 2024

Q1 2024 orders received by product area,

MEUR and yoy%

-69%

3,8

2%

18,9

3%

16,9

-29%

6,8

Architectural Tempering and Laminating Technologies

Insulating Glass Technologies

Mobility, Display and Solar Technologies

Services

Unallocated and eliminations

Net sales grew strongly in Insulating Glass and Mobility, Display & Solar technologies

		Group net sales, MEUR and yoy%			Q1 2024 net sales by product area,
70,0								MEUR and yoy%
60,0									-32%
								-1%	10,2
50,0								17,8
40,0
									35%
						0%		131%	20,0
30,0				3%	12%	9%	8,5
	59,8		59,7
		-2%
	53,5	55,2	55,8
52,3		53,5
	51,3
47,9
20,0
								Architectural Tempering and Laminating Technologies
10,0								Insulating Glass Technologies
							Mobility, Display and Solar Technologies
								Services
0,0								Unallocated and eliminations
Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
9	January−March 2024				May 3, 2024

Net sales grew in EMEA and especially APAC, Americas flat

Q1 2024 net sales by region MEUR, yoy% and share of total

	EMEA	49%
33%	27.3 MEUR

Americas	+8%
18%
18.5 MEUR
+0%	APAC
	10.1 MEUR
	+34%

10

January−March 2024

May 3, 2024