Glaston Oyj Abp - Interim report (Q1 and Q3)

Glaston's interim report January─March 2024: Net sales and comparable EBITA improved, markets remained challenging

GLASTON CORPORATION              INTERIM REPORT            3.5.2024 AT 8.30

This release is a summary of Glaston Corporation's Interim Report for
January−March 2024. The complete report is attached to this release as a pdf
-file. The release is also available on the company's website at the address
www.glaston.net.

JANUARY─MARCH 2024 IN BRIEF

  · Orders received totaled EUR 46.6 (56.9) million.
  · Net sales totaled EUR 55.8 (51.3) million.
  · Comparable EBITA was EUR 3.6 (3.0) million, i.e. 6.4 (5.8)% of net sales.
  · The operating result (EBIT) was EUR 1.9 (1.9) million.
  · The comparable earnings per share were EUR 0.019 (0.019).

GLASTON'S OUTLOOK FOR 2024 REMAINS UNCHANGED

The cautious development in the architectural glass processing equipment markets
continued in the first quarter of the year. Despite the slow start, Glaston
expects the architectural glass processing equipment markets to start recovering
at some point in 2024. For mobility glass processing equipment, the positive
development in China is expected to continue. Amid global economic uncertainty
and increased geopolitical tensions, higher-than-normal uncertainty exists
concerning customers' decision-making.

Glaston started the year with a lower order backlog than the previous year.
However, given the expected slowly improving market activity during the year,
Glaston Corporation estimates that its net sales and comparable EBITA will stay
at the same level or increase slightly in 2024 from the levels reported for
2023. In 2023, Group net sales totaled EUR 219.7 million and comparable EBITA
was EUR 14.9 million.

INTERIM CEO ANTTI KAUNONEN:

“We had a good first quarter despite the challenging market environment.
Glaston's markets saw a cautious start to the year. Demand for tempering and
laminating equipment continued to soften, whereas demand for insulating glass
technologies, supported by climate-related drivers, was stable. The good demand
for pre-processing technologies in China continued.

Glaston's order intake was down 18% year-on-year. In addition to the sluggish
market, the timing of some projects also affected the outcome. The order intake
for tempering and laminating technologies and for mobility, display, and solar
technologies fell compared to the comparison period. Despite the softer market,
the order intake for insulating glass technologies increased slightly. Services'
order intake also had a small increase. The geographical breakdown of the order
intake was not typical for Glaston as APAC, driven primarily by China, for the
first time emerged as the largest region followed by EMEA and the Americas.

First-quarter net sales were up 9% to EUR 55.8 million, primarily due to the
good order intake for pre-processing equipment in China in the second half of
2023. Comparable EBITA improved and was EUR 3.6 million. The higher volume in
Mobility, Display, and Solar was the main contributor to the outcome.

Due to the significant changes in the global economy and Glaston's addressable
markets starting to soften in 2023, we announced in February that the timeframe
for achieving our strategic targets had been adjusted from 2025 to the medium
-term (3−5 years). The net sales and ROCE targets were also slightly updated. We
expect annual average net sales growth to exceed the addressable equipment
market growth and the target for comparable return on capital employed (ROCE) is
above 16%. The target for comparable operating margin (EBITA) of 10% remained
unchanged. It is very clear to us that these targets cannot be met through
machine sales alone and the role of the Services business is crucial in reaching
the operating margin target. We continue to develop our service portfolio and
the capabilities of the global service network.

Currently, activity in the Architectural market has slowed down. We have already
initiated cost-saving actions and will take further measures according to the
situation. Glaston has a broad and versatile product and services portfolio, and
our markets consist of many different market areas and countries, which provides
stability. Our ongoing product development will increase our competitive
position, and the industry trends, especially automation and the focus on energy
-efficient glass products will support our strategic direction.

Safety continued to be a key focus area. In the January−March period, no lost
time accidents were reported. However, zero accidents do not automatically mean
operations are completely safe. We must continue to further develop the safety
culture and e.g. be more observant of near-misses and unsafe conditions. This
also applies to activities outside Glaston's premises, such as employees working
at customers' sites.

The recruitment process to hire the company's new CEO was completed in the
quarter and Toni Laaksonen was appointed as Glaston's new President and CEO. He
will take up his new position at the latest at the end of September 2024. We
warmly welcome Toni to Glaston!”

GLASTON GROUP'S KEY FIGURES

[]
MEUR                            1-3/2024  1-3/2023    Change%  1-12/2023
Orders received                     46.6      56.9     -18.0%      220.3
of which service operations         18.9      18.5       2.2%       74.4
of which service operations, %     40.5%     32.5%                 33.8%
Order book at end of period        101.4     139.0     -27.1%      106.5
Net sales                           55.8      51.3       8.8%      219.7
of which service operations         17.8      18.0      -1.2%       76.0
of which service operations, %     31.8%     35.0%                 34.6%
EBITDA                               4.1       3.7      10.1%       15.7
Items affecting comparability        0.6       0.3      69.2%        3.3
[(1]
Comparable EBITDA                    4.6       4.0      15.0%       19.0
Comparable EBITDA, %                8.3%      7.8%                  8.7%
Comparable EBITA                     3.6       3.0      18.5%       14.9
Comparable EBITA, %                 6.4%      5.8%                  6.8%
Operating result (EBIT)              1.9       1.9       1.9%        8.1
Profit/loss for the period           0.8       1.1     -21.5%        5.0
Comparable earnings per share,     0.019     0.019      -2.5%      0.104
EUR
Cash flow from operating            -7.5      -0.5  -1,515.0%       13.8
activities
Return on capital employed         10.4%      7.3%                  8.1%
(ROCE), %, (annualized)
Comparable return on capital       12.3%      8.9%                 12.7%
employed (ROCE), %,
(annualized)
Equity ratio, %                    44.9%     45.6%                 45.2%
Net gearing, %                     28.1%     23.2%                 15.8%
Number of employees at end of        800       800      0.0 %        802
period

 1. + cost, - income

PRESS MEETING

Interim CEO Antti Kaunonen and CFO Päivi Lindqvist will present the financial
result to analysts, investors and media representatives today at 11:00 (Finnish
time) in English.

The audiocast can be accessed through the link: https://glaston.videosync.fi/q1
-2024/register. An on-demand version of the presentation will be available on
the company's website later during the same day.


For further information, please contact:
Interim CEO Antti Kaunonen, tel. +358 10 500 500
Chief Financial Officer Päivi Lindqvist, tel. +358 10 500 500

GLASTON CORPORATION
Pia Posio
VP, Communications, Marketing and IR
Tel. +358 10 500 5076

Glaston in brief
Glaston is the glass processing industry's innovative technology leader
supplying equipment, services and solutions to the architectural, mobility,
display and solar industries. The company also supports the development of new
technologies integrating intelligence to glass.

Glaston is committed to providing its clients with both the best know-how and
the latest technologies in glass processing, with the purpose of building a
better tomorrow through safer, smarter, and more energy efficient glass
solutions. Glaston operates globally with manufacturing, services and sales
offices in nine countries and its shares (GLA1V) are listed on Nasdaq Helsinki
Ltd.

Distribution: Nasdaq Helsinki Ltd, key media, www.glaston.net.

Attachments:

05011639.pdf