2013-08-08 12:00:00 CEST
2013-08-08 12:00:06 CEST
REGULATED INFORMATION
Glaston Oyj Abp - Interim report (Q1 and Q3)
Glaston Interim Report 1 January – 30 June 2013
Helsinki, Finland, 2013-08-08 12:00 CEST (GLOBE NEWSWIRE) -- Glaston
Corporation INTERIM REPORT 8
August 2013 at 13.00
Continuing Operations January-June 2013 compared with January-June 2012
(comparison year figures have been restated)
Glaston Interim Report 1 January - 30 June 2013
-- Orders received in January-June totalled EUR 55.8 (56.4) million.
Orders received in the second quarter were EUR 26.9 (28.2) million.
-- The order book on 30 June 2013 was EUR 33.8 (34.1) million.
-- Consolidated net sales in January-June totalled EUR 60.1 (58.7) million.
Second-quarter net sales were EUR 33.7 (28.5) million.
-- EBITDA was EUR 6.8 (-0.8) million, i.e. 11.2 (-1.3)% of net sales.
-- The operating result, excluding non-recurring items, in January-June was a
profit of EUR 0.7 (3.5 loss) million, i.e. 1.2 (-5.9)% of net sales.
The second-quarter operating result, excluding non-recurring items, was a
profit of EUR 1.1 (2.7 loss) million.
-- The operating result in January-June was a profit of EUR 4.5 (6.5 loss)
million, i.e. 7.4 (-11.0)% of net sales.
The second-quarter operating result was a profit of EUR 1.1 (2.7 loss)
million.
-- Continuing Operations' return on capital employed (ROCE) was 16.8 (-10.2)%.
-- Continuing Operations' January-June earnings per share were EUR 0.03
(-0.09).
Continuing and Discontinued Operations' earnings per share totalled EUR
0.03 (-0.08).
-- Glaston's interest-bearing net debt totalled EUR 12.3 (55.6) million.
-- Glaston adjusts its outlook and expects 2013 net sales to be on the 2012
level and both the EBIT excluding non-recurring items and EBIT to be
positive.
Adjustment to outlook for 2013
Glaston adjusts its outlook for 2013. We expect 2013 net sales to be on the
2012 level and both the EBIT excluding non-recurring items and EBIT to be
positive. (Earlier forecast: Glaston expects 2013 net sales to be on the 2012
level and EBIT to be positive.)
President & CEO Arto Metsänen:
“Despite market uncertainty, Glaston's second quarter went according to our
expectations.
Glaston's net sales in the review period totalled EUR 60.1 million, slightly
higher than the previous year. Glaston's machine sales in Asia exceeded
expectations. The North American market was rather buoyant. In the EMEA area,
our sales were at the previous year's level, with the focus of orders being in
the Central Europe and in the United Kingdom. In the Middle Eastern market,
there was clear growth in activity, but the political uncertainty has slowed
decision-making. We expect the positive development of the heat treatment
machine market to continue also during the latter part of the year.
With respect to the Services segment, it is notable that, after a challenging
first quarter, sales picked up in the second quarter and the segment's
operating profit rose by 20% compared with the previous year.
Now that our financial position has been strengthened, Glaston's main goal for
2013 is a positive operating result. The January-June operating result,
excluding non-recurring items, was EUR 0.7 million. The second-quarter
operating result, excluding non-recurring items, was a profit of EUR 1.1
million, with the comparison figure being a EUR 2.7 million loss. I am
particularly satisfied that the impact of the adjustment programme implemented
at the end of last year is now fully realised in the result.”
Markets
In the second quarter of 2013, a cautiously positive development of Glaston's
markets was evident. The recovery of the North American market continued,
boosted by a pick-up in the construction industry. Stable development of the
South American market continued. The EMEA area, which is Glaston's biggest
market area, remained challenging, as in previous review periods.
Machines
The Machines segment's first part of the year went to according to plan with
respect to heat treatment machines. The market for pre-processing machines
continued to be challenging as price competition intensifies.
In the second quarter, the pick-up in the heat treatment machine market
continued and positive development was evident in North America and Asia. For
pre-processing machines, demand in South America and in the EMEA area was on a
good level. In North America and in Asia, demand for pre-processing machines
was weaker.
The second quarter saw the launch of the technologically advanced GlastonAir™
flat tempering machine, in which glass is supported by hot air instead of
rollers. The main advantage of air flotation is uniform support, which
facilitates the tempering of glass as thin as 2 mm without compromising optical
quality. Another new product launch was IriControL™ technology, with which
glass processors can measure and minimise so-called anisotropic phenomena in
tempered glass. Both products, which were presented at the China Glass Fair in
Beijing and in connection with the Glass Performance Days Conference in
Finland, were positively received by customers. With respect to the GlastonAir™
technology, interest was stimulated not only by the tempering of 2 mm glass,
but also by low energy consumption in the tempering of thicker glasses and the
high optical quality of the tempered glass.
In the second quarter, Glaston closed a deal worth around EUR 2.2 million for
two flat tempering furnaces, a Glaston CHF™ and a Glaston CCS900™ , with the
Chinese company Xianning CSG Glass Co. Ltd. The orders are a follow-up to sales
of several CCS™ and CHF™ flat tempering furnaces installed during the last five
years. A deal valued at around EUR 4.8 million was also closed with the
Columbian company Tecnoglass for four Glaston FC500™ flat tempering machines.
These machines will be delivered to the customer during 2013. The orders were
distributed across the first- and second-quarter order books.
In January-June, the Machines segment's net sales totalled EUR 45.5 (43.6)
million. The operating result, excluding non-recurring items, was a profit of
EUR 0.7 (2.6 loss) million. Second-quarter net sales totalled EUR 26.4 (21.7)
million and the operating result, excluding non-recurring items, was a profit
of EUR 1.0 (1.7 loss) million.
Services
The Services segment's early part of the year passed on a challenging note,
particularly with respect to spare parts sales for heat treatment machines. In
the second quarter, particularly in North America, demand for upgrade products
also slowed down. This was reflected in the upgrade products' second-quarter
order intake, as demand shifted towards sales of new machines. The company's
market position remained strong, however. Sales of maintenance work on heat
treatment machines developed according to expectations during the first part of
the year.
In spare parts sales for pre-processing machines, very aggressive price
competition continued. Despite this, Glaston succeeded in increasing spare
parts sales for pre-processing machines in the EMEA area and in Asia.
The most significant deals were modernisations of old tempering machines in
Japan, Saudi Arabia and Hungary. In upgrade products, demand was focused
particularly on energy-saving upgrades.
In January-June, the Services segment's net sales totalled EUR 14.7 (15.6)
million and the operating profit, excluding non-recurring items, was EUR 2.4
(2.7) million. Second-quarter net sales totalled EUR 7.0 (7.0) million and the
operating profit, excluding non-recurring items, was EUR 1.2 (1.0) million.
Significant asset sales during the review period
Glaston completed the sale of its Software Solutions business area in the first
quarter. The sales price was approximately EUR 18 million of which a portion is
contingent. The result of Glaston's Discontinued Operations in 2013 includes
the result of the Software Solutions business area for the period 1 January-31
January 2013 as well as the 2013 result on the sale of the business area. The
Discontinued Operations' result for January-June 2013 after income taxes was
EUR 0.0 million.
During the first quarter, Glaston also completed the sale and leaseback of the
Tampere factory property complex in Finland. The sale resulted in a
non-recurring capital gain of EUR 3.8 million.
Continuing Operations' orders received and order book
Glaston's order intake during the first six months of the year totalled EUR
55.8 (56.4) million. Of orders received, the Machines segment accounted for 75%
and the Services segment 25%.
Orders received during the second quarter of the year totalled EUR 26.9 (28.2)
million.
Glaston's order book on 30 June 2013 was EUR 33.8 (34.1) million. Of the order
book, the Machines segment accounted for EUR 32.2 million and the Services
segment for EUR 1.6 million.
Order book, EUR million 30.6.2013 30.6.2012
---------------------------------------------
Machines 32.2 30.8
---------------------------------------------
Services 1.6 3.3
---------------------------------------------
Total 33.8 34.1
---------------------------------------------
Continuing Operations' net sales, operating result and result
Net sales for the review period totalled EUR 60.1 (58.7) million. The Machines
segment's net sales in the first half of the year were EUR 45.5 (43.6) million
and the Services segment's net sales were EUR 14.7 (15.6) million.
April-June net sales totalled EUR 33.7 (28.5) million. The Machines segment's
net sales in the second quarter were EUR 26.4 (21.7) million and the Services
segment's net sales were EUR 7.0 (7.0) million.
Net sales, EUR million 1-6/2013 1-6/2012 1-12/2012
-------------------------------------------------------
Machines 45.5 43.6 84.7
-------------------------------------------------------
Services 14.7 15.6 32.3
-------------------------------------------------------
Other and internal sales -0.1 -0.5 -1.4
-------------------------------------------------------
Total 60.1 58.7 115.6
-------------------------------------------------------
The operating result, excluding non-recurring items, in January-June was a
profit of EUR 0.7 (3.5 loss) million, i.e. 1.2 (-5.9)% of net sales. The
Machines segment's operating result, excluding non-recurring items, in
January-June was a profit of EUR 0.7 (2.6 loss) million and the Services
segment's operating result, excluding non-recurring items, was a profit of EUR
2.4 (2.7) million. Of the non-recurring items totalling EUR 3.8 million
recognised in the first quarter of the year, the most significant was a capital
gain of EUR 3.8 million from the sale of the Tampere property complex. A
goodwill impairment loss of EUR 3.0 million directed at Pre-processing
operating segment, which belongs to the Machines segment, was recognised as a
non-recurring item in the first quarter of 2012.
The second-quarter operating result, excluding non-recurring items, was a
profit of EUR 1.1 (2.7 loss) million, i.e. 3.2 (-9.6)%. The Machines segment's
operating result, excluding non-recurring items, in April-June was a profit of
EUR 1.0 (1.7 loss) million and the Services segment's operating result,
excluding non-recurring items, was a profit of EUR 1.2 (1.0) million.
EBIT, EUR million 1-6/2013 1-6/2012 1-12/2012
--------------------------------------------------------------
Machines 0.7 -2.6 -2.6
--------------------------------------------------------------
Services 2.4 2.7 5.9
--------------------------------------------------------------
Other and eliminations -2.3 -3.6 -6.7
--------------------------------------------------------------
EBIT, excl. non-recurring items 0.7 -3.5 -3.4
--------------------------------------------------------------
Non-recurring items 3.8 -3.0 -5.4
--------------------------------------------------------------
EBIT, Continuing Operations 4.5 -6.5 -8.8
--------------------------------------------------------------
During the first quarter, Glaston repurchased convertible bonds with a nominal
value EUR 2 million at a price below the nominal value. This repurchase yielded
financial income of EUR 0.9 million. Similarly, during the first quarter, the
remaining convertible bond and debenture bond with accrued interest were used
as payment in a share issue (conversion issue). As the subscription price of
the conversion issue was higher than the fair value of the share at the time of
subscription, financial income of EUR 1.9 million arose to Glaston in
connection with the conversion issue. These financial income items had no
impact on cash flow. The Group's net financial items in January-June were EUR
0.9 (-3.4) million. In the second quarter net financial items were EUR -1.4
(-1.9) million of which a significant part was exchange rate losses deriving
from Brazilian reais denominated financial items..
Continuing Operations' result in January-June was a profit of EUR 4.3 (9.9
loss) million, and in the second quarter a loss of EUR 0.4 (4.9 loss) million.
The result, after the result of Discontinued Operations, was a profit of EUR
4.3 (9.3 loss) million. Return on capital employed (ROCE) for Continuing
Operations in January-June was 16.8 (-10.2)%. Return on capital employed was
17.0 (-8.9)%.
Earnings per share
Continuing Operations' earnings per share in the review period were EUR 0.03
(-0.09) and Discontinued Operations' earnings per share were EUR 0.00 (0.01),
i.e. a total of EUR 0.03 (-0.08).
Financial position, cash flow and financing
In the first quarter, the Group implemented extensive measures to strengthen
the company's financial position. These measures included a share issue, the
conversion of convertible and debenture bonds into shares by using them as
payment in the conversion issue, a new long-term financing agreement, the
completion of the sale of the Software Solutions segment, and the sale and
leaseback of the Tampere factory property complex.
In February 2013, Glaston signed a new long-term financing agreement. The
financing agreement is for three years and it is valid until 31 January 2016.
The covenants in use are interest cover, net debt/EBITDA, cash and cash
equivalents, and gross capital expenditure. The covenants will be monitored,
depending on the covenant, monthly, quarterly, semi-annually or annually. With
respect to the interest cover covenant, the first monitoring date is after the
first quarter of 2014.
The Group's liquid funds at the end of the review period totalled EUR 14.2
(11.1) million. Interest-bearing net debt totalled EUR 12.3 (55.6) million and
net gearing was 22.8 (126.3)%; net gearing was 188.4% on 31 December 2012.
The share issues executed during the first quarter improved Glaston's equity
ratio significantly. The equity ratio was 46.5 (27.7)% on 30 June 2013, and was
21.6% on 31 December 2012.
At the end of June, the consolidated asset total was EUR 130.2 (172.3) million.
The equity attributable to owners of the parent was EUR 53.4 (43.7) million.
The share issue-adjusted equity per share was EUR 0.28 (0.39). Return on equity
in January-June was 20.5 (-38.4)%.
Cash flow from the operating activities of Continuing and Discontinued
operations, before the change in working capital, was EUR 3.0 (0.6) million in
January-June. The change in working capital was EUR -1.3 (-3.0) million. Cash
flow from investing activities was EUR 23.5 (-3.0) million. Cash flow from
investing activities was influenced by proceeds from the sales of the Software
Solutions segment and the Tampere factory property, a total of EUR 25.4
million. Cash flow from financing activities in January-June was EUR -21.7
(-1.9) million.
Capital expenditure, depreciation and amortisation
The gross capital expenditure of Glaston's Continuing and Discontinued
Operations totalled EUR 1.7 (3.0) million. Continuing Operations' capital
expenditure totalled EUR 1.4 million. In the review period, there were no
significant individual investments; the most significant investments were in
product development.
Depreciation and amortisation of Continuing Operations on property, plant and
equipment and on intangible assets totalled EUR 2.3 (2.7) million. A EUR 3.0
million goodwill impairment loss, directed at the Pre-processing operating
segment, which belongs to the Machines segment, was recognised in the first
quarter of 2012.
Employees
Glaston's Continuing Operations had a total of 592 (630) employees on 30 June
2013. Of the Group's employees, 22% worked in Finland and 28% elsewhere in the
EMEA area, 34% in Asia and 15% in the Americas. In the review period, the
average number of employees was 595 (837).
Extraordinary Annual General Meeting 2013 and issuances of shares
The Extraordinary General Meeting held on 12 February 2013 authorised the Board
of Directors to decide on one or more issuances of shares. At its meeting on 28
February 2013, Glaston's Board of Directors decided, based on the
authorisations granted by the Extraordinary General Meeting held on 12 February
2013 and by the Annual General Meeting held on 5 April 2011, to execute a share
issue by offering a maximum of 50,000,000 new shares for subscription by the
public, in derogation of the pre-emptive subscription right of shareholders, at
the subscription price of EUR 0.20 per share. Furthermore, the Board of
Directors decided, based on the authorisation granted by the Extraordinary
General Meeting held on 12 February 2013, to execute a share issue directed at
the holders of the convertible bond issued by Glaston in 2009 and the debenture
bond issued by Glaston in 2011. This conversion issue offered a maximum of
38,119,700 new shares in the company for subscription by the holders of the
convertible bond 2009 and debenture bond 2011, in derogation of the pre-emptive
subscription right of shareholders. The conversion issue was executed as a
private placement arrangement to the holders of the bonds. The subscription
price of the new shares offered in the conversion issue was EUR 0.30 per share.
On 11 March 2013, Glaston's Board of Directors approved the subscriptions of
50,000,000 issued shares made in the share issue and the subscriptions of
38,119,700 new shares made in the conversion issue. As a result of the share
issue and the conversion issue, the number of the company's shares increased by
88,119,700 shares to 193,708,336 shares. The new shares were entered in the
Trade Register on 27 March 2013. The total subscriptions of the share issue and
the conversion issue were approximately EUR 21.4 million.
Annual General Meeting 2013
The Annual General Meeting of Glaston Corporation was held in Helsinki on 17
April 2013. The Annual General Meeting adopted the financial statements and
consolidated financial statements for the period 1 January - 31 December 2012.
In accordance with the proposal of the Board of Directors, the Annual General
Meeting resolved that no dividend be distributed for the financial year ending
31 December 2012.
The Annual General Meeting discharged the Members of the Board of Directors and
the President & CEO from liability for the financial year 1 January - 31
December 2012.
The number of the Members of the Board of Directors was resolved to be six. The
Annual General Meeting decided to re-elect Claus von Bonsdorff, Anu Hämäläinen,
Teuvo Salminen, Christer Sumelius, Pekka Vauramo and Andreas Tallberg as
Members of the Board of Directors for the following term ending at the closing
of the next Annual General Meeting. After the Annual General Meeting, the Board
of Directors elected Andreas Tallberg as Chairman of the Board and Christer
Sumelius as Deputy Chairman of the Board.
The Annual General Meeting resolved that the annual remuneration payable to
Members of the Board of Directors shall remain unchanged. The Chairman of the
Board shall be paid EUR 40,000, the Deputy Chairman EUR 30,000 and the other
Members of the Board EUR 20,000.
The Annual General Meeting elected as auditor Public Accountants Ernst & Young
Oy, with Authorised Public Accountant Harri Pärssinen as the responsible
auditor.
The Annual General Meeting authorised the Board of Directors to decide on the
issuance of shares as well as the issuance of options and other rights granting
entitlement to shares. The authorisation covers a maximum of 20,000,000 shares.
The authorisation does not exclude the Board of Directors' right to decide on a
directed issue. It was proposed that the authorisation be used for executing or
financing arrangements important from the company's point of view, such as
business arrangements or investments, or for other such purposes determined by
the Board of Directors in which a weighty financial reason would exist for
issuing shares, options or other rights granting entitlement to shares and
possibly directing a share issue.
The Board of Directors is authorised to resolve on all other terms and
conditions of the issuance of shares, options and other rights entitling to
shares as referred to in Chapter 10 of the Companies Act, including the payment
period, grounds for the determination of the subscription price and the
subscription price or allocation of shares, options or other rights without
payment or that the subscription price may be paid besides in cash also by
other assets either partially or entirely. The authorisation is valid until 30
June 2014 and it invalidates earlier authorisations.
The Annual General Meeting resolved to establish a permanent Nomination Board
consisting of shareholders or representatives of shareholders to prepare and
present for the next Annual General Meeting and, if necessary, to an
Extraordinary General Meeting, proposals concerning the number and identities
of the members of the Board of Directors and the remuneration of the Board of
Directors. In addition, the task of the Nomination Board is to seek candidates
as potential board members. The Nomination Board consists of four members, all
of which shall be appointed by the company's four largest shareholders, who
shall appoint one member each. The Chairman of the company's Board of Directors
shall serve as an advisory member of the Nomination Board.
The company's largest shareholders entitled to appoint members to the
Nomination Board shall be determined on the basis of the registered holdings in
the company's shareholder register held by Euroclear Finland Ltd as of the
first working day in September in the year concerned. The Chairman of the Board
of Directors shall request each of the four largest shareholders to appoint one
member to the Nomination Board. In the event that a shareholder does not wish
to exercise his or her right to appoint a representative, it shall pass to the
next-largest shareholder who would not otherwise be entitled to appoint a
member to the Nomination Board.
The Nomination Board shall elect a Chairman from among its members. The
Chairman of the Board of Directors shall convene the first meeting of the
Nomination Board and the Nomination Board's Chairman shall be responsible for
convening subsequent meetings. The Nomination Board shall deliver its proposal,
which will be included in the notice to the Annual General Meeting, to the
Company's Board of Directors by the end of January preceding the next Annual
General Meeting.
Shares and share prices
Glaston Corporation's paid and registered share capital on 30 June 2013 was EUR
12.7 million and the number of issued and registered shares totalled
193,708,336. The company has one series of share. At the end of June, the
company held 788,582 of the company's own shares (treasury shares),
corresponding to 0.41% of the total number of issued and registered shares and
votes. The counter book value of treasury shares is EUR 51,685.
Every share that the company does not hold itself entitles its owner to one
vote at a General Meeting of Shareholders. The share has no nominal value. The
counter book value of each registered share is EUR 0.07.
During the first six months of the year, a total of around 15 million of the
company's shares were traded, i.e. around 9.9% of the average number of
registered shares. The lowest price paid for a share was EUR 0.22 and the
highest price EUR 0.38. The volume-weighted average price of shares traded in
January-June was EUR 0.29. The closing price on 30 June 2013 was EUR 0.33.
On 30 June 2013, the market capitalisation of the company's registered shares,
treasury shares excluded, was EUR 63.7 (28.3) million. The share issue-adjusted
equity per share attributable to owners of the parent was EUR 0.28 (0.39).
Uncertainties and risks in the near future
Glaston's business environment remains challenging. Low economic growth and
uncertainty in the financial markets may affect the timing of large machine
orders. The general economic uncertainty continues to affect customers'
investment activity.
Global economic uncertainty and its impact on development of the sector have
been taken into account in the short-term forecasts. If the recovery of the
sector is delayed further or slows, this will have a negative effect on future
cash flows.
Glaston performs annual goodwill impairment testing during the final quarter of
the year. In addition, goodwill impairment testing is performed if there are
indications of impairment. Due to prolonged market uncertainty, it is possible
that Glaston's recoverable amounts will be insufficient to cover the carrying
amounts of assets, particularly goodwill. If this happens, it will be necessary
to recognise an impairment loss, which, when implemented, will weaken the
result and equity.
Glaston has recognized in total approximately EUR 3.8 million of loan, interest
and trade receivables from a counterparty, whose financial situation is
challenging. Glaston monitors the situation of the counterparty continuously,
and if needed, recognizes an impairment loss of the receivables.
General business risks and risk management are outlined in more detail in
Glaston's 2012 Annual Report and on the company's website www.glaston.net.
Outlook
We expect that the cautious pick-up in the market will continue in the second
half of the year. In North America, the recovery of the construction industry
has continued and the market outlook is more positive than in 2012. We expect
that the cautiously positive development in Asia will continue, supported by a
slightly higher order intake. Stable development in South America is expected
to continue. In Europe, the market will continue to be challenging.
As a result of economic uncertainty and overcapacity, the market for new glass
processing machines will remain challenging. A recovery in demand for heat
treatment machines was perceptible in the second quarter and we expect this
positive trend to continue in the second half of the year.
The Group's financial position improved significantly in the first quarter of
2013. Due to the measures implemented, the company has good prospects for
business development. We will continue our investments in product development
and in the further development of glass processing lifecycle services.
Glaston adjusts its outlook for 2013. We expect 2013 net sales to be on the
2012 level and both the EBIT excluding non-recurring items and EBIT to be
positive. (Earlier forecast: Glaston expects 2013 net sales to be on the 2012
level and EBIT to be positive.)
Helsinki, 8 August 2013
Glaston Corporation
Board of Directors
For further information, please contact:
President & CEO Arto Metsänen, tel. +358 10 500 6100
CFO Sasu Koivumäki, tel. +358 10 500 500
Sender:
Agneta Selroos
Director, Communications and MarketingGlaston Corporation
Tel. +358 10 500 6105
Glaston Corporation
Glaston is a global company developing glass processing technology for
architectural, solar, appliance and automotive applications. Our product
portfolio ranges from pre-processing and safety glass machines to services. We
are dedicated to our customers' continued success and provide services for all
glass processing needs with a lifecycle-long commitment in mind. For more
information, please visit www.glaston.net. Glaston's share (GLA1V) is listed on
the NASDAQ OMX Helsinki Small Cap List.
Distribution: NASDAQ OMX, key media, www.glaston.net
GLASTON CORPORATION
CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 30 JUNE 2013
These interim financial statements are not audited. As a result of rounding
differences, the figures presented in the tables may not add up to the total.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
restated restated restated
EUR million 30.6.2013 30.6.2012 31.12.2012 1.1.2012
Assets
Non-current assets
Goodwill 36.8 49.6 36.8 52.6
Other intangible assets 9.7 18.1 10.7 18.2
Property, plant and equipment 7.4 17.8 7.3 18.7
Investments in associates - 0.1 - 0.0
Available-for-sale assets 0.3 0.3 0.3 0.3
Loan receivables 1.8 4.5 1.8 4.4
Deferred tax assets 5.7 6.9 6.7 6.9
--------------------------------------------------------------------------------
Total non-current assets 61.9 97.3 63.8 101.2
Current assets
Inventories 23.4 27.5 21.8 25.2
Receivables
Trade and other receivables 30.0 35.7 31.2 40.8
Assets for current tax 0.8 0.7 0.9 1.3
--------------------------------------------------------------------------------
Total receivables 30.8 36.4 32.0 42.1
Cash equivalents 14.2 11.1 10.6 18.6
Assets held for sale - - 29.8 -
Total current assets 68.4 75.0 94.2 86.0
--------------------------------------------------------------------------------
Total assets 130.2 172.3 158.0 187.2
================================================================================
restated restated restated
30.6.2013 30.6.2012 31.12.2012 1.1.2012
Equity and liabilities
Equity
Share capital 12.7 12.7 12.7 12.7
Share premium account 25.3 25.3 25.3 25.3
Other restricted equity reserves 0.1 0.0 0.0 0.0
Reserve for invested unrestricted 47.4 26.8 26.8 26.8
equity
Treasury shares -3.3 -3.3 -3.3 -3.3
Fair value reserve 0.0 0.0 0.0 0.0
Other unrestricted equity reserves 0.1 - 0.1 -
Retained earnings and exchange -33.1 -8.5 -8.9 -8.9
differences
Net result attributable to owners of 4.3 -9.3 -22.4 -
the parent
--------------------------------------------------------------------------------
Equity attributable to owners of the 53.4 43.7 30.3 52.6
parent
Non-controlling interest 0.3 0.3 0.3 0.3
--------------------------------------------------------------------------------
Total equity 53.7 44.0 30.6 53.0
--------------------------------------------------------------------------------
Non-current liabilities
Convertible bond - 8.1 8.2 7.9
Non-current interest-bearing 12.9 34.1 4.1 37.7
liabilities
Non-current interest-free 3.5 2.4 2.6 2.2
liabilities and provisions
Deferred tax liabilities 1.0 3.0 1.3 3.5
--------------------------------------------------------------------------------
Total non-current liabilities 17.3 47.7 16.2 51.4
Current liabilities
Current interest-bearing liabilities 13.6 24.6 56.2 22.6
Current provisions 1.9 4.1 3.5 4.1
Trade and other payables 43.3 51.6 46.4 55.3
Liabilities for current tax 0.4 0.3 0.3 0.7
Liabilities related to assets held - - 4.7 -
for sale
Total current liabilities 59.2 80.6 111.2 82.8
--------------------------------------------------------------------------------
Total liabilities 76.5 128.2 127.4 134.2
--------------------------------------------------------------------------------
Total equity and liabilities 130.2 172.3 158.0 187.2
================================================================================
CONDENSED STATEMENT OF PROFIT OR LOSS
restat restat restat
ed ed ed
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
Net sales 33.7 28.5 60.1 58.7 115.6
Other operating income 0.2 0.2 4.1 0.4 1.1
Expenses -31.7 -30.1 -57.4 -59.9 -117.1
Depreciation, amortization and impairment -1.1 -1.3 -2.3 -5.7 -8.4
--------------------------------------------------------------------------------
Operating result 1.1 -2.7 4.5 -6.5 -8.8
Financial items, net -1.4 -1.9 0.9 -3.4 -8.6
--------------------------------------------------------------------------------
Result before income taxes -0.3 -4.6 5.4 -9.9 -17.4
Income taxes -0.1 -0.3 -1.1 0.0 -0.8
--------------------------------------------------------------------------------
Profit / loss for the period from -0.4 -4.9 4.3 -9.9 -18.2
continuing operations
--------------------------------------------------------------------------------
Profit / loss after tax for the period 0.0 0.9 0.0 0.6 -4.2
from discontinued operations
--------------------------------------------------------------------------------
Profit / loss for the period -0.4 -4.0 4.3 -9.3 -22.4
================================================================================
Attributable to:
Owners of the parent -0.3 -3.9 4.3 -9.3 -22.4
Non-controlling interest 0.0 0.0 0.0 0.0 0.0
Total -0.4 -4.0 4.3 -9.3 -22.4
================================================================================
Earnings per share, EUR, continuing -0.01 -0.04 0.03 -0.09 -0.16
operations
Earnings per share, EUR, discontinued 0.00 0.01 0.00 0.01 -0.04
operations
Earnings per share, EUR, basic and diluted -0.01 -0.03 0.03 -0.08 -0.20
--------------------------------------------------------------------------------
Operating result, continuing operations , 3.2 -9.6 7.4 -11.0 -7.6
as % of net sales
Profit / loss for the period, continuing -1.1 -17.2 7.1 -16.9 -15.8
operations , as % of net sales
Profit / loss for the period, as % of net -1.0 -13.9 7.2 -15.8 -19.4
sales
Non-recurring items included in operating 0.0 - 3.8 -3.0 -5.4
result, continuing operations
Operating result, non-recurring items 1.1 -2.7 0.7 -3.5 -3.4
excluded, continuing operations
Operating result, continuing operations, 3.2 -9.6 1.2 -5.9 -2.9
non-recurring items excluded, as % of net
sales
CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME
restat restat restat
ed ed ed
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
Profit / loss for the period -0.4 -4.0 4.3 -9.3 -22.4
Other comprehensive income that will be
reclassified subsequently to profit or
loss:
Exchange differences on translating foreign 0.4 0.6 0.4 0.3 0.2
operations
Fair value changes of available-for-sale 0.0 0.0 0.0 0.0 0.0
assets
Income tax on other comprehensive income 0.0 0.0 0.0 0.0 0.0
Other comprehensive income that will not be
reclassified subsequently to profit or
loss:
Exchange differences on actuarial gains and 0.0 0.0 0.0 0.0 0.0
losses arising from defined benefit plans
Actuarial gains and losses arising from 0.0 0.0 0.0 0.0 -0.2
defined benefit plans
Income tax on other actuarial gains and 0.0 0.0 0.0 0.0 0.1
losses arising from defined benefit plans
Other comprehensive income for the reporting 0.4 0.6 0.4 0.3 0.0
period, net of tax
--------------------------------------------------------------------------------
Total comprehensive income for the reporting 0.0 -3.3 4.7 -9.0 -22.4
period
--------------------------------------------------------------------------------
Attributable to:
Owners of the parent 0.0 -3.3 4.7 -8.9 -22.3
Non-controlling interest 0.0 0.0 0.0 0.0 0.0
Total comprehensive income for the reporting 0.0 -3.3 4.7 -9.0 -22.4
period
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million restated restated
1-6/2013 1-6/2012 1-12/2012
Cash flows from operating activities
Cash flow before change in net working capital 3.0 0.6 1.1
Change in net working capital -1.3 -3.0 -2.3
--------------------------------------------------------------------------------
Net cash flow from operating activities 1.7 -2.4 -1.1
Cash flow from investing activities
Business combinations - - -0.1
Other purchases of non-current assets -1.7 -3.0 -5.6
Proceeds from sale of business 12.9 - -
Proceeds from sale of assets held for sale 12.4 - -
Proceeds from sale of other non-current assets 0.0 0.0 0.2
--------------------------------------------------------------------------------
Net cash flow from investing activities 23.5 -3.0 -5.5
--------------------------------------------------------------------------------
Cash flow before financing 25.3 -5.4 -6.6
Cash flow from financing activities
Share issue, net 9.1 - -
Increase in non-current liabilities 14.7 - 0.1
Decrease in non-current liabilities -43.4 -1.5 -1.6
Changes in loan receivables (increase - / 0.1 0.0 0.1
decrease +)
Increase in short-term liabilities 23.7 4.7 11.2
Decrease in short-term liabilities -25.9 -5.1 -10.3
--------------------------------------------------------------------------------
Net cash flow from financing activities -21.7 -1.9 -0.5
--------------------------------------------------------------------------------
Effect of exchange rate changes -0.3 -0.3 -0.6
Net change in cash and cash equivalents 3.3 -7.5 -7.7
================================================================================
Cash and cash equivalents at the beginning of 10.9 18.6 18.6
period
Cash and cash equivalents at the end of period 14.2 11.1 10.9
--------------------------------------------------------------------------------
Net change in cash and cash equivalents 3.3 -7.5 -7.7
================================================================================
Cash flows include also cash flows arising from discontinued operations.
Proceeds from divestment of businesses:
EUR million
Purchase consideration received in cash 15.5
Expenses related to the sale, paid in 2013 -1.1
Cash and cash equivalents of divested subsidiaries -1.6
--------------------------------------------------------
Net cash flow 12.9
--------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million Share Share Other Reser Treas Fair
capital premi restr ve ury value
um . for share reserv
accou equit inves s e
nt y ted
reser unres
ves t. equit
y
--------------------------------------------
Equity at 1 January, 2012, restated 12.7 25.3 0.0 26.8 -3.3 0.0
--------------------------------------------------------------------------------
Total comprehensive income for the - - 0.0 - - 0.0
period
Reclassification - - 0.0 - - -
Equity at 30 June, 2012, restated 12.7 25.3 0.0 26.8 -3.3 0.0
================================================================================
EUR million Share Share Other Reser Treas Fair
capital premi restr ve ury value
um . for share reserv
accou equit inves s e
nt y ted
reser unres
ves t.
equit
y
--------------------------------------------
Equity at 1 January, 2013, restated 12.7 25.3 0.0 26.8 -3.3 0.0
--------------------------------------------------------------------------------
Total comprehensive income for the - - 0.0 - - 0.0
period
Reclassification - - 0.1 - - -
Share issue less of costs - - - 9.1 - -
Share issue paid with convertible - - - 11.4 - -
and debenture bonds
Equity at 30 June, 2013 12.7 25.3 0.0 47.4 -3.3 0.0
================================================================================
EUR million Other Retai Excha Equit Non-c Total
unrestr ned nge y ontr. equity
. earni diff. attr. inter
equity ngs to est
reserve owner
s s of
the
paren
t
--------------------------------------------
Equity at 1 January, 2012, restated - -8.6 -0.3 52.6 0.3 53.0
--------------------------------------------------------------------------------
Total comprehensive income for the - -9.3 0.3 -8.9 0.0 -9.0
period
Reclassification 0.1 -0.1 - 0.0 - 0.0
Share-based incentive plan - 0.0 - 0.0 - 0.0
Share-based incentive plan, tax - 0.0 - 0.0 - 0.0
effect
Equity at 30 June, 2012, restated 0.1 -17.9 0.1 43.7 0.3 44.0
================================================================================
EUR million Other Retai Excha Equit Non-c Total
unrestr ned nge y ontr. equity
. earni diff. attri inter
equity ngs b. to est
reserve owner
s s of
the
paren
t
--------------------------------------------
Equity at 1 January, 2013, restated 0.1 -31.2 -0.1 30.3 0.3 30.6
--------------------------------------------------------------------------------
Total comprehensive income for the - 4.3 0.4 4.7 0.0 4.7
period
Reclassification - -0.1 - 0.0 - 0.0
Share-based incentive plan - 0.1 - 0.1 - 0.1
Share-based incentive plan, tax - 0.0 - 0.0 - 0.0
effect
Share issue less of costs - - - 9.1 - 9.1
Share issue paid with convertible - -0.4 - 11.0 - 11.0
and debenture bonds
Result effect of the conversion - -1.9 - -1.9 - -1.9
issue
----------------
Equity at 30 June, 2013 0.1 -29.1 0.3 53.4 0.3 53.7
================================================================================
During the first quarter Glaston had two share issues. A EUR 10 million share
issue was directed to the public and another share issue was directed to the
holders of the convertible bond and the debenture bond. In this conversion
issue the principals as well as accrued interest, in total EUR 11.4 million,
were used as payment for the shares. Both share issues were recognized in
reserve for invested unrestricted equity. The expenses arising from the share
issue, in total EUR 0.9 million, have been deducted from the reserve for
invested unrestricted equity.
FINANCIAL ITEMS
During the first quarter Glaston purchased back convertible bonds with a
nominal value of EUR 2 million. The price paid for the bonds was less than the
nominal value which resulted in a EUR 0.9 million financial income
In addition, during the first quarter the remaining convertible bonds with
accrued interest as well as debenture bond with accrued interest were used as
payment in a share issue (conversion issue). As the conversion price was higher
than the fair value of the share at the time of conversion, a financial income
of EUR 1.9 million was recognized.
Neither of the financial income affected cash flow.
KEY RATIOS
restate restated
d
30.6.13 30.6.12 31.12.12
EBITDA, as % of net sales (1 11.2 -1.3 -0.3
Operating result (EBIT), as % of net sales 7.4 -11.0 -7.6
Profit / loss for the period, as % of net sales 7.1 -16.9 -15.8
Gross capital expenditure, continuing and 1.7 3.0 5.6
discontinued operations, EUR million
Gross capital expenditure, as % of net sales of 3.2 4.4 4.1
continuing and discontinued operations
Equity ratio, % 46.5 27.7 21.6
Gearing, % 49.2 151.6 224.0
Net gearing, % 22.8 126.3 188.4
Net interest-bearing debt, EUR million 12.3 55.6 57.7
Capital employed, end of period, EUR million 80.1 110.8 99.2
Return on equity, %, annualized 20.5 -38.4 -53.6
Return on capital employed, %, annualized 17.0 -8.9 -12.6
Return on capital employed, continuing operations 16.8 -10.2 -9.4
%, annualized
Number of personnel, average 595 837 820
Number of personnel, continuing operations , end of 592 630 602
period
Number of personnel, discontinued operations, end of - 183 175
period
Number of personnel, end of period 592 813 776
(1 EBITDA = Operating result + depreciation, amortization and impairment
(2 Assets held for sale and related liabilities are included in calculation of
the key ratio
PER SHARE DATA restate restated
d
30.6.13 30.6.12 31.12.12
Number of registered shares, end of period, treasury 192,920 104,800 104,800
shares excluded (1,000)
Number of shares issued, end of period, adjusted 192,920 113,241 113,241
with share issue, treasury shares excluded (1,000)
Number of shares, average, adjusted with share 155,061 113,241 113,241
issue, treasury shares excluded (1,000)
Number of shares, dilution effect of the convertible 155,061 120,514 120,514
bond taken into account, average, adjusted with
share issue, treasury shares excluded (1,000) ('
EPS, continuing operations , basic and diluted, 0.03 -0.09 -0.16
adjusted with share issue, EUR
EPS, Discontinued Operations, basic and diluted, 0.00 0.01 -0.04
adjusted with share issue, EUR
EPS, total, basic and diluted, adjusted with share 0.03 -0.08 -0.20
issue, EUR
Adjusted equity attributable to owners of the parent 0.28 0.39 0.27
per share, EUR
Price per adjusted earnings per share (P/E) ratio 11.8 -3.3 -1.3
Price per adjusted equity attributable to owners of 1.19 0.70 0.97
the parent per share
Market capitalization of registered shares, EUR 63.7 28.3 27.2
million
Share turnover, % (number of shares traded, % of the 9.9 10.6 16.9
average registered number of shares)
Number of shares traded, (1,000) 15,014 11,132 17,736
Closing price of the share, EUR 0.33 0.27 0.26
Highest quoted price, EUR 0.38 0.74 0.74
Lowest quoted price, EUR 0.22 0.24 0.23
Volume-weighted average quoted price, EUR 0.29 0.46 0.39
DEFINITIONS OF KEY RATIOS
Definitions of key ratios are presented in 2012 financial statements as well as
in January - March 2013 interim report.
ACCOUNTING PRINCIPLES
The consolidated interim financial statements of Glaston Group are prepared in
accordance with International Financial Reporting Standard IAS 34 Interim
Financial Reporting as approved by the European Union. They do not include all
of the information required for full annual financial statements.
The accounting principles applied in these interim financial statements are the
same as those applied by Glaston in its consolidated financial statements as at
and for the year ended 31 December, 2012, with the exception that some new or
revised or amended standards and interpretations have been applied from 1
January, 2013. These amended standards and interpretations are presented in
2012 financial statements as well as in January - March 2013 interim report.
RESTATEMENT OF PRIOR REPORTING PERIODS
Revised IAS 19 Employee benefits standard has been applied retrospectively. The
effects of the revised standard on consolidated statement of financial position
are presented in the table below. The effects on consolidated statement of
profit or loss were not material. The effects on Glaston's statement of profit
or loss of 2012 are presented in the table below. The restatement did not
affect the result of discontinued operations. The restatement of defined
benefit pension and other defined long-term employee benefit liabilities
affected mainly the Machines segment.
Glaston recognizes interest expenses arising from defined benefit plans in
financial items.
Restatement of statement of financial position
EUR million restated
30.6.2012 restate 30.6.2012
ment
Equity attributable to owners of the parent 44.2 -0.2 44.0
Defined benefit pension and other defined 1.0 0.2 1.3
long-term employee benefit liabilities
Deferred tax liabilities 3.0 -0.1 3.0
restated
31.12.2012 restate 31.12.2012
ment
Equity attributable to owners of the parent 30.9 -0.3 30.6
Defined benefit pension and other defined 0.9 0.4 1.4
long-term employee benefit liabilities
Laskennalliset verovelat 1.5 -0.1 1.3
restated
1.1.2012 restate 1.1.2012
ment
Equity attributable to owners of the parent 53.2 -0.2 53.0
Defined benefit pension and other defined 1.1 0.2 1.3
long-term employee benefit liabilities
Deferred tax liabilities 3.6 -0.1 3.5
Restatement of statement of profit or loss
restated
1-12/2012 restatement 1-12/2012
Expenses -117.1 0.0 -117.1
------------------------------------------------------------------
Operating result -8.8 0.0 -8.8
Financial items -8.6 0.0 -8.6
Income taxes -0.8 0.0 -0.8
------------------------------------------------------------------
Result of continuing operations -18.3 0.0 -18.2
------------------------------------------------------------------
SEGMENT INFORMATION
The reportable segments of Glaston are Machines and Services. Software
Solutions segment, which has previously belonged to reportable segments is
presented as discontinued operations. Glaston follows the same commercial terms
in transactions between segments as with third parties.
The reportable segments consist of operating segments, which have been
aggregated in accordance with the criteria of IFRS 8.12. Operating segments
have been aggregated, when the nature of the products and services is similar,
the nature of the production process is similar, as well as the type or class
of customers. Also the methods to distribute products or to provide services
are similar.
The reportable Machines segment consists of Glaston's operating segments
manufacturing glass processing machines and related tools. The Machines segment
includes manufacturing and sale of glass tempering, bending and laminating
machines, glass pre-processing machines as well as sale and manufacturing of
tools
Services segment includes maintenance and service of glass processing machines
and sale of spare parts and upgrades.
The unallocated operating result consists of head office operations of the
Group.
The non-recurring items of January - June 2013, in total EUR 3.8 million
positive, consist mainly of the gain from the sale of Tampere real estate.
Other non-recurring items are adjustments made to restructuring costs initially
recognized in 2012.
The non-recurring items of January - December 2012 consist of goodwill
impairment loss (EUR 3.0 million), goodwill impairment loss arising from
measurement of disposal group classified as held for sale at fair value less
costs to sell (EUR 5.2 million, in result of discontinued operations) and
personnel and other costs arising from restructuring (EUR 2.9 million, of which
EUR 0.5 million in result of discontinued operations).
Segment assets include external trade receivables and inventory, and segment
liabilities include external trade payables and advance payments received. In
addition, segment assets and liabilities include business related prepayments
and accruals as well as other business related receivables and liabilities.
Segment assets and liabilities do not include loan receivables, prepayments and
receivables related to financial items, interest-bearing liabilities, accruals
and liabilities related to financial items, income and deferred tax assets and
liabilities nor cash and cash equivalents.
Continuing operations
Machines
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
External sales 26.4 21.7 45.5 43.6 84.7
Intersegment sales 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Net sales 26.4 21.7 45.5 43.6 84.7
EBIT excluding non-recurring items 1.0 -1.7 0.7 -2.6 -2.6
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 4.0 -7.8 1.5 -5.9 -3.1
Non-recurring items 0.0 - 0.0 -3.0 -4.7
--------------------------------------------------------------------------------
EBIT 1.1 -1.7 0.7 -5.6 -7.3
EBIT-% 4.0 -7.8 1.5 -12.8 -8.6
Net working capital 29.1 43.7 30.0
--------------------------------------------------------------------------------
Number of personnel, average 452 507 492
Number of personnel, end of period 449 489 461
--------------------------------------------------------------------------------
Services
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
External sales 6.7 6.7 14.0 15.0 30.8
Intersegment sales 0.3 0.3 0.7 0.5 1.5
--------------------------------------------------------------------------------
Net sales 7.0 7.0 14.7 15.6 32.3
EBIT excluding non-recurring items 1.2 1.0 2.4 2.7 5.9
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 16.7 13.7 16.1 17.4 18.3
Non-recurring items - - 0.0 - -0.1
--------------------------------------------------------------------------------
EBIT 1.2 1.0 2.4 2.7 5.8
EBIT-% 16.7 13.7 16.1 17.4 18.0
Net working capital 23.4 22.0 23.1
--------------------------------------------------------------------------------
Number of personnel, average 133 128 129
Number of personnel, end of period 130 128 130
--------------------------------------------------------------------------------
Glaston Group
Net sales
-------------------------------------------------
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
Machines 26.4 21.7 45.5 43.6 84.7
Services 7.0 7.0 14.7 15.6 32.3
Other and intersegment sales 0.3 -0.3 -0.1 -0.5 -1.4
Glaston Group total 33.7 28.5 60.1 58.7 115.6
--------------------------------------------------------------------------------
EBIT
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
Machines 1.0 -1.7 0.7 -2.6 -2.6
Services 1.2 1.0 2.4 2.7 5.9
Other and eliminations -1.2 -2.0 -2.3 -3.6 -6.7
EBIT excluding non-recurring items 1.1 -2.7 0.7 -3.5 -3.4
--------------------------------------------------------------------------------
Non-recurring items 0.0 - 3.8 -3.0 -5.4
EBIT, continuing operations 1.1 -2.7 4.5 -6.5 -8.8
--------------------------------------------------------------------------------
Net financial items -1.4 -1.9 0.9 -3.4 -8.6
--------------------------------------------------------------------------------
Result before income taxes from continuing -0.3 -4.6 5.4 -9.9 -17.4
operations
Income taxes from continuing operations -0.1 -0.3 -1.1 0.0 -0.8
Result from continuing operations -0.4 -4.9 4.3 -9.9 -18.2
--------------------------------------------------------------------------------
Net discontinued operations 0.0 0.9 0.0 0.6 -4.2
Net result -0.4 -4.0 4.3 -9.3 -22.4
--------------------------------------------------------------------------------
Number of personnel, average 595 647 634
Number of personnel, end of period 592 630 602
--------------------------------------------------------------------------------
Segment assets
---------------------------------------------
EUR million 30.6.2013 30.6.2012 31.12.2012
------------------------------------------------------------------------------
Machines 70.2 88.5 73.4
Services 29.0 28.4 29.0
Total segments 99.2 116.9 102.4
------------------------------------------------------------------------------
Unallocated and eliminations and adjustments 5.4 4.8 2.8
Total segment assets 104.6 121.7 105.2
------------------------------------------------------------------------------
Other assets 25.7 50.6 52.8
Total assets 130.2 172.3 158.0
------------------------------------------------------------------------------
Segment liabilities
---------------------------------------------
EUR million 30.6.2013 30.6.2012 31.12.2012
------------------------------------------------------------------------------
Machines 41.1 44.8 43.4
Services 5.6 6.4 6.0
Total segments 46.7 51.2 49.4
------------------------------------------------------------------------------
Unallocated and eliminations and adjustments 1.9 2.2 2.3
Total segment liabilities 48.7 53.4 51.7
------------------------------------------------------------------------------
Other liabilities 27.9 74.8 75.6
Total liabilities 76.5 128.2 127.4
------------------------------------------------------------------------------
Net working capital
---------------------------------------------
EUR million 30.6.2013 30.6.2012 31.12.2012
------------------------------------------------------------------------------
Machines 29.1 43.7 30.0
Services 23.4 22.0 23.1
Total segments 52.5 65.7 53.0
------------------------------------------------------------------------------
Unallocated and eliminations and adjustments 3.4 2.7 0.5
Total Glaston Group 55.9 68.3 53.5
------------------------------------------------------------------------------
Order intake (continuing operations)
EUR million 1-6/2013 1-6/2012 1-12/2012
-------------------------------------------------------------------
Machines 41.6 39.8 86.3
Services 14.1 16.7 31.8
Total Glaston Group 55.8 56.4 118.1
-------------------------------------------------------------------
Net sales by geographical areas (continuing operations)
EUR million 1-6/2013 1-6/2012 1-12/2012
-------------------------------------------------------------------
EMEA 24.6 24.6 48.2
Asia 13.9 15.2 25.4
America 21.6 18.9 42.0
Total 60.1 58.7 115.6
-------------------------------------------------------------------
QUARTERLY NET SALES, OPERATING RESULT, ORDER INTAKE AND ORDER BOOK
Continuing operations
Machines
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2013 2013 2012 2012 2012 2012
-------------------------------------------------------------------------
External sales 26.4 19.1 22.7 18.4 21.7 21.9
Intersegment sales 0.0 0.0 0.0 0.0 0.0 0.0
-------------------------------------------------------------------------
Net sales 26.4 19.1 22.7 18.4 21.7 21.9
EBIT excluding non-recurring items 1.0 -0.4 0.5 -0.5 -1.7 -0.9
-------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 4.0 -1.9 2.1 -2.5 -7.8 -4.1
Non-recurring items 0.0 0.0 -1.8 0.0 - -3.0
-----------------------------------
EBIT 1.1 -0.4 -1.3 -0.5 -1.7 -3.9
-------------------------------------------------------------------------
EBIT-% 4.0 -2.0 -5.7 -2.5 -7.8 -17.7
-------------------------------------------------------------------------
Services
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2013 2013 2012 2012 2012 2012
-------------------------------------------------------------------------
External sales 6.7 7.2 9.5 6.3 6.7 8.3
Intersegment sales 0.3 0.5 0.3 0.6 0.3 0.2
-------------------------------------------------------------------------
Net sales 7.0 7.7 9.9 6.8 7.0 8.5
EBIT excluding non-recurring items 1.2 1.2 2.0 1.2 1.0 1.7
-------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 16.7 15.6 19.9 18.1 13.7 20.5
Non-recurring items - 0.0 -0.1 - - -
-----------------------------------
EBIT 1.2 1.2 1.9 1.2 1.0 1.7
-------------------------------------------------------------------------
EBIT-% 16.7 15.6 18.8 18.1 13.7 20.5
-------------------------------------------------------------------------
Net sales
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2013 2013 2012 2012 2012 2012
-------------------------------------------------------------------------
Machines 26.4 19.1 22.7 18.4 21.7 21.9
Services 7.0 7.7 9.9 6.8 7.0 8.5
Other and intersegment sales 0.3 -0.4 -0.3 -0.6 -0.3 -0.2
Glaston Group total 33.7 26.4 32.3 24.6 28.5 30.2
-------------------------------------------------------------------------
EBIT
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2013 2013 2012 2012 2012 2012
-------------------------------------------------------------------------
Machines 1.0 -0.4 0.5 -0.5 -1.7 -0.9
Services 1.2 1.2 2.0 1.2 1.0 1.7
Other and eliminations -1.2 -1.2 -1.9 -1.2 -2.0 -1.6
EBIT excluding non-recurring items 1.1 -0.4 0.5 -0.4 -2.7 -0.7
-------------------------------------------------------------------------
Non-recurring items 0.0 3.7 -2.4 - - -3.0
--------------------------------------
EBIT 1.1 3.4 -1.9 -0.4 -2.7 -3.7
-------------------------------------------------------------------------
Order book (continuing operations)
-----------------------------------------------------------------
EUR million 30.6. 31.3. 31.12. 30.9. 30.6. 31.3.
2013 2013 2012 2012 2012 2012
-----------------------------------------------------------------
Machines 32.2 37.8 33.1 31.3 30.8 34.2
Services 1.6 1.6 1.1 4.0 3.3 1.1
Total Glaston Group 33.8 39.4 34.2 35.3 34.1 35.2
-----------------------------------------------------------------
Order intake (continuing operations)
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2013 2013 2012 2012 2012 2012
-----------------------------------------------------------------
Machines 20.3 21.4 25.5 21.1 19.1 20.7
Services 6.7 7.5 7.9 7.3 9.1 7.6
Total Glaston Group 26.9 28.8 33.3 28.4 28.2 28.3
-----------------------------------------------------------------
Discontinued Operations and Assets and Liabilities of Disposal Group Classified
as Held for Sale
Glaston announced in October 2012 that it was negotiating of sale of Software
Solutions business area. Glaston published in November 2012 that it has signed
a binding contract of the sale of the business area. The closing of the sale
took place on 4 February, 2013. The result of Software Solutions business area
as well as the result from the sale transaction is presented as profit / loss
for the period from continuing operations.
Revenue, expenses and result of discontinued operations
EUR million 1-6/20 1-6/20 1-12/20
13 12 12
Revenue 1.8 10.5 21.0
Expenses -1.2 -9.8 -19.2
--------------------------------------------------------------------------------
Gross profit 0.5 0.7 1.7
Finance costs, net 0.0 0.0 0.0
Impairment loss recognized on the remeasurement to fair - - -5.2
value less cost to sell
--------------------------------------------------------------------------------
Profit / loss before tax from discontinued operations 0.5 0.7 -3.5
Current income tax -0.1 -0.1 -0.7
Income tax related to measurement to fair value less - - -
costs to sell
Loss from disposal of discontinued operations -0.4 - -
Profit / loss from discontinued operations 0.0 0.6 -4.2
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Profit / loss from discontinued operations in 2012 include EUR 5.2 million
goodwill impairment loss. The goodwill impairment loss arises from measurement
of net assets held for sale to fair value less costs to sell.
Assets and liabilities of disposal group classified as held for sale
Assets and liabilities of disposal groups at 31, December 2012 included, in
addition to assets and liabilities related to discontinued operations, also the
real estate in Tampere, Finland, which Glaston had classified as non-current
asset held for sale. The sale and leaseback transaction took place at the end
of March 2013. The lease agreement arising from the transaction will be an
operating lease.
30.6.2013 30.6.2012 31.12.2012
Assets
Goodwill - - 7.6
Other intangible assets - - 7.3
Tangible assets - - 9.6
Investments in associates - - 0.1
Available-for-sale assets - - 0.0
Deferred tax asset - - 0.0
Inventories - - 0.0
Assets for current tax - - 0.0
Trade and other receivables - - 5.0
Cash equivalents - - 0.3
Assets classified as held for sale - - 29.8
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Liabilites
Deferred tax liability - - 1.8
Non-current interest-free liabilities and - - 0.1
provisions
Current provisions - - 0.4
Current interest-bearing liabilities - - 0.0
Trade and other payables - - 2.1
Liabilities for current tax - - 0.2
Liabilities related to assets held for sale - - 4.7
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Net cash flows of discontinued operations
EUR million
1-6/2013 1-6/2012 1-12/2012
Operating 1.0 1.7 2.8
Investing -0.3 -1.5 -3.1
Financing 0.0 0.0 0.0
Net cash flow 0.7 0.2 -0.3
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CONTINGENT LIABILITIES
EUR million 30.6.2013 30.6.2012 31.12.2012
Mortgages and pledges
On own behalf 295.0 488.4 470.8
On behalf of others 0.1 0.1 0.1
Guarantees
On own behalf 3.4 0.8 0.4
On behalf of others 0.0 0.0 0.0
Lease obligations 19.5 8.4 7.2
Other obligation on own behalf - 0.6 0.5
Mortgages and pledges include EUR 89.4 million shares in group companies and
EUR 37.9 million receivables from group companies.
Glaston Group has international operations and can be a defendant or plaintiff
in a number of legal proceedings incidental to those operations. The Group does
not expect the outcome of any unmentioned legal proceedings currently pending,
either individually or in the aggregate, to have material adverse effect upon
the Group's consolidated financial position or results of operations.
DERIVATIVE INSTRUMENTS
EUR million 30.6.2013 30.6.2012 31.12.2012
Nominal Fair Nominal Fair Nominal Fair
value value value value value value
Commodity
derivatives
Electricity 0.4 0.0 0.2 0.0 0.3 0.0
forwards
Derivative instruments are used only for hedging purposes. Nominalvalues of
derivative instruments do not necessarily correspond with the actual cash flows
between the counterparties and do not therefore give a fair view of the risk
position of the Group. The fair values are based on market valuation on the
date of reporting. PROPERTY, PLANT AND EQUIPMENT
EUR million
Changes in property, plant and equipment 1-6/13 1-6/12 1-12/12
Carrying amount at beginning of the period 7.3 18.7 18.7
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Additions 0.7 0.3 0.6
Disposals 0.0 0.0 -0.1
Depreciation -0.7 -1.2 -2.2
Impairment losses and reversals of impairment losses 0.0 - -
Reclassification and other changes -0.7 - 0.0
Transfer to / from assets held for sale 0.7 - -9.7
Exchange differences 0.0 0.0 -0.1
Carrying amount at end of the period 7.4 17.8 7.3
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At the end of June 2013 or 2012 Glaston did not have of contractual commitments
for the acquisition of property, plant and equipment.
SHAREHOLDER INFORMATION
20 largest shareholders 30 June, 2013
Shareholder Number of % of shares and
shares votes
1 Etera Mutual Pension Insurance Company 27,144,277 14.01
2 Varma Mutual Pension Insurance Company 17,331,643 8.95
3 Suomen Teollisuussijoitus Oy 16,601,371 8.57
4 GWS Trade Oy 13,446,700 6.94
5 Oy G.W.Sohlberg Ab 12,819,400 6.62
6 Yleisradio Pension Foundation 10,481,369 5.41
7 Hymy Lahtinen Oy 10,238,250 5.29
8 Päivikki and Sakari Sohlberg Foundation 5,065,600 2.62
9 Oy Investsum Ab 3,480,000 1.80
10 Sumelius Bjarne Henning 2,436,504 1.26
11 Investment Fund Danske Invest Suomi 2,244,114 1.16
Kasvuosake
12 Investment Fund Säästöpankki Pienyhtiöt 2,107,860 1.09
13 Sumelius-Fogelholm Birgitta Christina 1,994,734 1.03
14 Von Christierson Charlie 1,600,000 0.83
15 Metsänen Arto Juhani 1,500,000 0.77
16 Oy Cacava Ab 1,500,000 0.77
17 Oy Nissala Ab 1,500,000 0.77
18 Sumelius Bertil Christer 1,398,533 0.72
19 Sumelius-Koljonen Barbro 1,350,238 0.70
20 Ehrnrooth Helene Margareta 1,350,000 0.70
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20 largest shareholders total 135,590,593 70.0
Nominee registered shareholders 76,791 0.04
Other shares 58,040,952 29.96
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Total 193,708,336 100.00
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RELATED PARTY TRANSACTIONS
Glaston Group's related parties include the parent and subsidiaries. Related
parties also include the members of the Board of Directors and the Group's
Executive Management Group, the CEO and their family members. Also the
shareholders, which have significant influence in Glaston through shareholding,
are consider to be related parties, as well as the companies controlled by
these shareholders.
Glaston follows the same commercial terms in transactions with related parties
as with third parties.
Glaston had rented premises from companies owned by individuals belonging to
the management. The rents paid correspond with the local level of rents. The
related party connection ceased at 30 November, 2012. The lease payments were
in January - June 2012 EUR 0.3 million.
During the review period there were no related party transactions whose terms
would differ from the terms in transactions with third parties.
Share-based payment plan
The Board of Directors of Glaston Corporation approved on 7 February 2013, a
new share-based incentive plan for the Group key employees. This share-based
incentive plan has been described in more detail in January - March 2013
interim report.
FINANCIAL INSTRUMENTS AT FAIR VALUE
Financial instruments at fair value include derivatives. Other financial
instruments at fair value through profit or loss can include mainly Glaston's
current investments, which are classified as held for trading, i.e. which have
been acquired or incurred principally for the purpose of selling them in the
near future. Also available-for-sale financial assets are measured at fair
value.
Fair values of publicly traded derivatives are calculated based on quoted market
rates at the end of the reporting period (fair value hierarchy, level 1). All
Glaston's derivatives are publicly traded.
Listed investments are measured at the market price at the end of the reporting
period (fair value hierarchy, level 2). Investments, for which fair values
cannot be measured reliably, such as unlisted equities, are reported at cost or
at cost less impairment (fair value hierarchy, level 3).
Fair value measurement hierarchy:
Level 1 = quoted prices in active markets
Level 2 = other than quoted prices included within Level 1 that are observable
either directly or indirectly
Level 3 = not based on observable market data, fair value equals cost or cost
less impairment
During the reporting period there were no transfers between levels 1 and 2 of
the fair value hierarchy.
During the reporting period there were no changes in the valuation techniques of
levels 2 or 3 of the fair value hierarchy.
Fair value hierarchy, level 3, changes during the reporting period
EUR million 2013 2012
1 January 0.3 0.3
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Impairment - -
Transfers - -
30 June 0.3 0.3
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Financial instruments measured at fair value and included in level 3 of fair
value hierarchy had no effect on the profit or loss of the reporting period or
on other comprehensive income. These financial instruments are not measured at
fair value on recurring basis.
Fair value hierarchy, fair values
EUR million
30.6.2013 30.6.2012 31.12.2012
Available-for-sale shares
Level 1 0.1 0.1 0.1
Level 3 0.2 0.3 0.2
0.3 0.3 0.3
Derivatives
Level 2 0.0 0.0 0.0
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