2010-05-04 12:00:00 CEST
2010-05-04 12:00:04 CEST
REGULATED INFORMATION
Glaston Oyj Abp - Interim report (Q1 and Q3)
Glaston Interim Report 1 January-31 March 2010
GLASTON CORPORATION INTERIM REPORT 4 May 2010 at 13.00 Glaston Interim Report 1 January - 31 March 2010 -Orders received in January-March totalled EUR 29.4 (26.8) million. -Glaston's order book on 31 March 2010 stood at EUR 36.9 (45.9) million. -Consolidated net sales in January-March totalled EUR 38.4 (39.2) million. -The operating result in January-March was a loss of EUR 1.7 (9.0 loss) million,i.e. -4.4 (-22.9)% of net sales. -Return on capital employed (ROCE) was -9.9 (-17.1)% -January-March earnings per share were EUR -0.06 (-0.10) million -Glaston's outlook for 2010 is unchanged. Due to efficiency measures already implemented, Glaston started 2010 on a better foundation and expects 2010 net sales to be at least at the 2009 level and the operating result to improve significantly. President & CEO Arto Metsänen: “After a very difficult year, it is positive to observe that the market decline has stopped and that a cautious recovery is under way. Demand in Asia grew in the first quarter according to expectations and the positive development in the South American market continued. In Europe and North America demand was at the same level as last year. The cost savings generated by implemented efficiency measures had a positive impact on the first quarter result. Measures to adjust to the market situation will be purposefully continued.” Reporting segments Glaston's reporting segments are Machines, Services and Software Solutions. In the first quarter, tool sales were transferred from the Services segment to the Machines segment. Comparison data have been adjusted. Markets The cautious recovery of the market continued during the first quarter but was geographically uneven. In South America and China the positive development continued, but the European and North American markets remained subdued. Solar energy glass demand rose slightly. Machines In the review period, demand in Europe and in North America continued to be weak. In Europe, uncertainty about economic development still influenced customers' investment decisions. Market instability was particularly evident in the number of new orders for Heat Treatment machines. The positive development of the South American market continued on a good level due to sustained demand. In Asia, and particularly in China,the market picked up. This was boosted by a pick-up in construction as well as increased use of laminated glass. A limited recovery was evident in demand for solar energy glass solutions, and during the review period Glaston received a number of larger orders for solar energy glass grinding machines. To improve product management, three product line organisations were established in the Machines segment: Heat Treatment, Pre-processing and Tools. At the same time, tools were transferred completely from the Services segment to the Machines segment. The transfer of cutting technology from Italy to China proceeded in the review period and a new cutting line was launched onto the Asian market. Sourcing from low-cost countries was expanded and the sourcing organisation in China was strengthened. In January-March, the Machines segment's net sales totalled EUR 24.3 (23.6) million. Services During the first quarter, slight signs of recovery were perceptible in the Services segment market. The European and North American markets, however, remained subdued. Sales of spare parts grew compared with the corresponding period of the previous year, with other product groups being on the same level as 2009. Despite the challenging market situation, demand for Glaston Care service contracts stayed at the level of last year. In the review period, the Services segment developed new upgrade products and focused on improving the profitability of upgrade products. In response to the increasing role of the Chinese market, the Services segment established a spare parts Delivery Center in connection with the Tianjin factory. In the review period, Tamglass Glass Processing Oy's solar energy glass manufacturing in Akaa ended and the personnel, a total of 15 people, were made redundant. The Akaa factory manufactured mirrors intended for solar energy production as a service activity on behalf of one customer. In January-March, the Services segment's net sales totalled EUR 8.2 (10.7) million. Software Solutions In the first quarter, the Software Solutions market followed the general market trend. Software Solutions' main market area, i.e. the EMEA area, has not shown signs of recovery. In the Asian and South American markets demand picked up slightly. In the United States, demand continued to be at a low level. Due to low demand, measures to boost sales will play a key role in future. The order book is at the level of the previous year, closely reflecting the prevailing market situation. The Panorama and AWFactory products, intended to manage integrated line control systems, were delivered to selected customers. These new-generation software systems enable a higher degree of automation and better work-flow integration, supporting Glaston's position as the leading supplier in the sector. In January-March, the Software Solutions segment's net sales totalled EUR 6.1 (6.0) million. Orders received Glaston's orders received during the first quarter totalled EUR 29.4 (26.8) million. Of orders received, the Machines segment accounted for 69%, Services 23% and Software Solutions 8%. Order book Glaston's order book on 31 March 2010 was EUR 36.9 (45.9) million. Of the order book, the Machines business area accounted for EUR 32.4 million, Services for EUR 0.7 million and Software Solutions for EUR 3.8 million. -------------------------------------------------------------------------------- | Order book, EUR million | 31.3.2010 | 31.3.2009 | -------------------------------------------------------------------------------- | Machines | 32.4 | 38.2 | -------------------------------------------------------------------------------- | Services: | 0.7 | 4.0 | -------------------------------------------------------------------------------- | Software Solutions | 3.8 | 3.7 | -------------------------------------------------------------------------------- | Total | 36.9 | 45.9 | -------------------------------------------------------------------------------- Net sales and operating result Net sales for the review period were EUR 38.4 (39.2) million. Of first-quarter net sales, the Machines segment accounted for EUR 24.3 (23.6) million, Services EUR 8.2 (10.7) million and Software Solutions EUR 6.1 (6.0) million. -------------------------------------------------------------------------------- | Net sales, EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Machines | 24.3 | 23.6 | 92.5 | -------------------------------------------------------------------------------- | Services | 8.2 | 10.7 | 37.7 | -------------------------------------------------------------------------------- | Software Solutions | 6.1 | 6.0 | 23.9 | -------------------------------------------------------------------------------- | Parent company, elim. | -0.2 | -1.0 | -2.4 | -------------------------------------------------------------------------------- | Total | 38.4 | 39.2 | 151.8 | -------------------------------------------------------------------------------- Implemented cost savings had a positive impact on the first-quarter result. The operating result in January-March was a loss of EUR 1.7 (9.0 loss) million, i.e. -4.4 (-22.9)% of net sales. Of the first-quarter operating result, the Machines segment accounted for EUR -1.5 (-5.3) million, Services EUR 1.0 (-1.7) million and Software Solutions EUR 0.7 (-0.4) million. First-quarter financial items include a EUR -2.7 million expense item connected with the INTERPANE Glass Oy ownership arrangement implemented on 9 April 2010. The result for the review period was a loss of EUR 4.4 million (8.1 loss). Return on capital employed was -9.9 (-17.1)% and earnings per share were EUR -0.06 (-0.10). Efficiency programme The efficiency programme proceeded according to plan in the review period. Production capacity adjustment measures in Italy and Finland continued. Most of the personnel reductions have already been implemented since the beginning of the year, with the remainder to be completed during 2010. Temporary lay-offs continued in Italy and Finland. The assembly plant located in Rovello Porro, Italy was closed in the review period and operations transferred to Bregnano. Material sourcing was enhanced at every factory by increasing purchases from low-cost countries. The sourcing organisation in China was strengthened. In the review period, a project to simplify the EMEA area sales organisation was initiated. Financing The Group's financial position remained good. A EUR 6.3 million convertible bond issued on 18 February 2010 influenced the Group's financial position. The terms of the convertible bond conditions are similar to the those of the convertible bond issued in June 2009. Cash flow from operating activities, excluding the change in working capital, was negative, EUR -3.2 (-8.1) million, in the review period. The most significant reason for the negative cash flow from operating activities was restructuring expenses recognised in 2009 but paid in the review period. The change in working capital was EUR -3.5 (4.4) million. Cash flow from investments was EUR -0.7 (-2.9) million. Cash flow from financing activities in January-March was EUR 5.5 (3.2) million. The equity ratio on 31 March 2010 was 32.1 (44.3)%. The Group's liquid funds at the end of the review period totalled EUR 15.3 (8.8) million. Interest-bearing net debt totalled EUR 67.7 (66.2) million and net gearing was 102.0 (58.7)%. In liquidity management, Glaston mainly utilises a committed revolving credit facility. The revolving credit facility was renewed in November 2009. The size of the new revolving credit facility is EUR 74 million, of which EUR 31 million was in use at the end of March. Capital expenditure, depreciation and amortisation Glaston's gross capital expenditure totalled EUR 0.8 (4.1) million. In the review period, there were no significant individual investments. In the review period, depreciation and amortisation of intangible assets and property, plant and equipment totalled EUR 1.8 (2.2) million. In addition, impairment losses of EUR 0.1 (0.4) million on intangible assets and property, plant and equipment were recognised in the review period. Personnel On 31 March 2010, Glaston Corporation had a total of 1,072 (1,532) employees. Of the Group's employees, 19% worked in Finland and 50% elsewhere in the EMEA area, 17% in Asia and 13% in the Americas. The average number of employees was 1,080 (1,542). Shares and share prices Glaston Corporation's paid and registered share capital on 31 March 2010 was EUR 12.7 million and the number of issued shares totalled 79,350,000. The company has one series of share. At the end of March, the company held 838,582 of the company's own shares (treasury shares), corresponding to 1% of the total number of issued shares and votes. The counter book value of treasury shares is EUR 134,173. Every share that the company does not hold itself entitles its owner to one vote at the Annual General Meeting. The share has no nominal value. The counter book value of each share is EUR 0.16. On 31 March 2010, the market capitalisation of the company's shares, treasury shares excluded, was EUR 113.1 (74.6) million. During the first quarter of the year, a total of around 5.8 million of the company's shares were traded, i.e. around 7% of the average number of shares. The lowest price paid for a share was EUR 1.05 and the highest price EUR 1.65. The weighted average price of shares traded during January-March was EUR 1.21. The closing price on 31 March 2010 was EUR 1.44. The equity per share attributable to the owners of the parent was EUR 0.84 (1.43). Events after the review period A Glaston Corporation joint venture, the glass processing company INTERPANE Glass Oy, was sold to Rakla Finland Oy on 9 April 2010. The impact of the ownership arrangement on the result, around EUR -2.7 million, has been recognised as a financial item in the first-quarter result. Decisions of the Annual General Meeting The Annual General Meeting of Glaston Corporation was held in Helsinki on 13 April 2010. The Annual General Meeting approved the financial statements and consolidated financial statements for 2009 and released the Board of Directors and the President & CEO from liability for the accounting period 1 January-31 December 2009. The Annual General Meeting approved a proposal of the Board of Directors that no dividend be distributed for the financial year 2009. The Annual General Meeting confirmed the re-election of the following Members of the Board of Directors for a year-long term of office: Claus von Bonsdorff, Klaus Cawén, Jan Lång, Carl-Johan Rosenbröijer, Christer Sumelius and Andreas Tallberg. In addition, Teuvo Salminen was elected as a new Member of the Board. The Annual General Meeting decided to maintain the Chairman of the Board's annual remuneration at EUR 40,000 and the Deputy Chairman's annual remuneration at EUR 30,000. It was also decided to maintain the annual remuneration of the other Members of the Board at EUR 20,000. The Annual General Meeting elected as auditor Public Accountants Ernst & Young, with the responsible auditor being Authorised Public Accountant Harri Pärssinen. The Annual General Meeting approved an amendment to Article 11 of the Articles of Association that the notice to attend a General Meeting be published no later than three (3) weeks prior to the General Meeting, however at the latest nine (9) days before the record date of the General Meeting. Authorisations given by the Annual General Meeting The Annual General Meeting also authorised the Board of Directors to decide on the issue of new shares and/or the conveyance of the own shares held by the Company. By virtue of the authorisation, the Board of Directors is entitled to decide on the issuance of a maximum of 6,800,000 new shares and on the conveyance of a maximum of 6,800,000 own shares held by the Company. However, the total number of shares to be issued and/or conveyed may not exceed 6,800,000 shares. The new shares may be issued and own shares held by the company may be conveyed either against payment or without payment. The new shares may be issued and/or own shares held by the Company conveyed to the Company's shareholders in proportion to their existing shareholdings in the Company, or by means of a directed share issue, waiving the pre-emptive subscription right of the shareholders, if there is a weighty reason for the Company to do so, such as the shares are to be used to improve the capital structure of the Company or as consideration in future acquisitions or other arrangements that are part of the Company's business or as part of Company's or its subsidiaries' incentive schemes. Shares can be issued or conveyed without payment in exception to the pre-emptive subscription right of shareholders only if there is an especially weighty financial reason for the company to do so, taking the interests of all shareholders into account. The Board of Directors may decide on a share issue without payment also to the company itself. A decision regarding a share issue to the Company itself cannot be made such that the total number of shares held jointly by the Company or its subsidiaries would exceed one tenth of all shares of the Company. The subscription price of new shares issued and the consideration paid for the conveyance of the Company's own shares shall be credited to the reserve for invested unrestricted equity. By virtue of the share issue authorisation, the Board of Directors shall decide on other matters relating to the issuing and conveyance of shares. The share issue authorisation is valid until the end of the 2012 Annual General Meeting. The Board of Directors has no other authorisations. Organising meeting of the Board of Directors At its organising meeting, the Board of Directors elected Andreas Tallberg to continue as the Chairman of the Board and Christer Sumelius to continue as the Deputy Chairman of the Board. Uncertainties in the near future Glaston's uncertainties and risks in the near future are to a large extent linked to the development of the world economy. Due to the recession, Glaston's markets have contracted and the company's main market areas (EMEA, North America) have recovered more slowly than other markets. The subdued market has also led to underutilization of glass processors' production capacity. Despite a gradual pick-up in the economy, difficulties related to customers' financing arrangements may limit investment opportunities further, in which case orders may be postponed and those already confirmed may be cancelled. Customers' financial situation also impacts on the collection of receivables and on credit losses. If the recovery of the sector is delayed, it is possible that Glaston's recoverable amounts will, despite the savings arising from efficiency measures, 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. Outlook A limited and modest recovery in Glaston's market is expected during 2010. At the end of 2009. a recovery was already perceptible in Asia and demand is expected to grow, particularly in the Chinese market. In South America, demand remained good during 2009 and the positive trend has continued in the early part of this year. Demand for solar energy projects is also expected to develop positively during the year. In 2010 the priorities for developing operations are improving profitability and completing the adjustment measures initiated in 2009. The cornerstones of our operations remain the architectural glass segment and the solar energy market. We will continue purposefully to strengthen our position in China and elsewhere in Asia. Due to the efficiency measures performed, Glaston started 2010 on a better foundation. We expect that 2010 net sales will be at least at the 2009 level and that the operating result will significantly improve. Helsinki, 4 May 2010 Glaston Corporation Board of Directors For further information, please contact: CEP&President Arto Metsänen, phone: +358 10 500 500 Sender: Glaston Corporation Agneta Selroos IR and Corporate Communications Manager Tel. +358 10 500 6105 Glaston Corporation Glaston Corporation is an international glass technology company. Glaston is the global market leader in glass processing machines, and a comprehensive One-Stop-Partner supplier to its customers. Its product range and service network are the widest in the industry. Glaston's well-known brands are Bavelloni in pre-processing machines and tools, Tamglass and Uniglass in safety glass machines, and Albat+Wirsam in glass industry software. Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki Mid Cap List. Distribution: OMX, media, www.glaston.net GLASTON CORPORATION CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 31 MARCH 2010 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 -------------------------------------------------------------------------------- | EUR million | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Assets | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Goodwill | 58.4 | 66.2 | 58.4 | -------------------------------------------------------------------------------- | Other intangible assets | 19.3 | 23.5 | 19.7 | -------------------------------------------------------------------------------- | Property, plant and equipment | 23.7 | 29.7 | 24.7 | -------------------------------------------------------------------------------- | Investments in joint ventures and | 0.0 | 1.8 | 0.4 | | associates | | | | -------------------------------------------------------------------------------- | Available-for-sale assets | 0.3 | 0.3 | 0.3 | -------------------------------------------------------------------------------- | Loan receivables | 3.2 | 5.4 | 5.9 | -------------------------------------------------------------------------------- | Deferred tax assets | 9.0 | 9.0 | 8.5 | -------------------------------------------------------------------------------- | Total non-current assets | 114.0 | 135.8 | 117.9 | -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 37.2 | 51.9 | 37.4 | -------------------------------------------------------------------------------- | Receivables | | | | -------------------------------------------------------------------------------- | Trade and other receivables | 54.2 | 70.2 | 52.2 | -------------------------------------------------------------------------------- | Assets for current tax | 3.6 | 3.4 | 3.6 | -------------------------------------------------------------------------------- | Total receivables | 57.8 | 73.6 | 55.8 | -------------------------------------------------------------------------------- | Cash equivalents | 15.3 | 8.8 | 15.6 | -------------------------------------------------------------------------------- | Total current assets | 110.3 | 134.4 | 108.8 | -------------------------------------------------------------------------------- | Total assets | 224.3 | 270.2 | 226.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Equity and liabilities | | | | -------------------------------------------------------------------------------- | Equity | | | | -------------------------------------------------------------------------------- | Share capital | 12.7 | 12.7 | 12.7 | -------------------------------------------------------------------------------- | Share premium account | 25.3 | 25.3 | 25.3 | -------------------------------------------------------------------------------- | Other reserves | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Reserve for invested unrestricted | 0.2 | 0.2 | 0.2 | | equity | | | | -------------------------------------------------------------------------------- | Treasury shares | -3.5 | -3.5 | -3.5 | -------------------------------------------------------------------------------- | Fair value reserve | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Retained earnings and exchange | 35.7 | 85.8 | 87.9 | | differences | | | | -------------------------------------------------------------------------------- | Net result attributable to owners | -4.4 | -8.1 | -53.6 | | of the parent | | | | -------------------------------------------------------------------------------- | Equity attributable to owners of | 66.1 | 112.4 | 69.0 | | the parent | | | | -------------------------------------------------------------------------------- | Non-controlling interest | 0.3 | 0.4 | 0.3 | -------------------------------------------------------------------------------- | Total equity | 66.4 | 112.8 | 69.4 | -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Convertible bond | 25.5 | - | 20.1 | -------------------------------------------------------------------------------- | Non-current interest-bearing | 4.6 | 16.3 | 4.7 | | liabilities | | | | -------------------------------------------------------------------------------- | Non-current interest-free | 6.3 | 7.6 | 7.3 | | liabilities and provisions | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 5.3 | 8.5 | 6.6 | -------------------------------------------------------------------------------- | Total non-current liabilities | 41.8 | 32.4 | 38.8 | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Current interest-bearing | 52.8 | 58.7 | 54.4 | | liabilities | | | | -------------------------------------------------------------------------------- | Current provisions | 6.9 | 8.9 | 9.8 | -------------------------------------------------------------------------------- | Trade and other payables | 54.2 | 56.4 | 53.2 | -------------------------------------------------------------------------------- | Liabilities for current tax | 2.2 | 1.0 | 1.0 | -------------------------------------------------------------------------------- | Total current liabilities | 116.1 | 125.0 | 118.5 | -------------------------------------------------------------------------------- | Total liabilities | 157.9 | 157.4 | 157.3 | -------------------------------------------------------------------------------- | Total equity and liabilities | 224.3 | 270.2 | 226.7 | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED INCOME STATEMENT -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 38.4 | 39.2 | 151.8 | -------------------------------------------------------------------------------- | Other operating income | 0.1 | 0.4 | 1.1 | -------------------------------------------------------------------------------- | Expenses | -37.8 | -46.0 | -185.8 | -------------------------------------------------------------------------------- | Share of associates and joint | -0.5 | - | -1.5 | | ventures' result | | | | -------------------------------------------------------------------------------- | Depreciation, amortization and | -1.9 | -2.6 | -20.9 | | impairment | | | | -------------------------------------------------------------------------------- | Operating profit / loss | -1.7 | -9.0 | -55.3 | -------------------------------------------------------------------------------- | Financial items, net | -3.1 | 0.0 | -2.3 | -------------------------------------------------------------------------------- | Result before income taxes | -4.8 | -9.0 | -57.6 | -------------------------------------------------------------------------------- | Income taxes | 0.4 | 0.9 | 4.0 | -------------------------------------------------------------------------------- | Profit / loss for the period | -4.4 | -8.1 | -53.6 | -------------------------------------------------------------------------------- | Attributable to: | | | | -------------------------------------------------------------------------------- | Owners of the parent | -4.4 | -8.1 | -53.6 | -------------------------------------------------------------------------------- | Non-controlling interests | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Total | -4.4 | -8.1 | -53.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, EUR, basic | -0.06 | -0.10 | -0.68 | -------------------------------------------------------------------------------- | Earnings per share, EUR, diluted | -0.06 | -0.10 | -0.68 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit / loss, as % of | -4.4 | -22.9 | -36.4 | | net sales | | | | -------------------------------------------------------------------------------- | Profit / loss for the period, as % | -11.4 | -20.6 | -35.3 | | of net sales | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-recurring items included in | - | - | -21.6 | | operating profit / loss | | | | -------------------------------------------------------------------------------- | Operating profit / loss, | -1.7 | -9.0 | -33.6 | | non-recurring items excluded | | | | -------------------------------------------------------------------------------- | Operating profit / loss, | -4.4 | -22.9 | -22.2 | | non-recurring items excluded, as % | | | | | of net sales | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit / loss for the period | -4.4 | -8.1 | -53.6 | -------------------------------------------------------------------------------- | Other comprehensive income | | | | -------------------------------------------------------------------------------- | Total exchange differences on | 0.7 | 0.6 | -0.7 | | translating foreign operations | | | | -------------------------------------------------------------------------------- | Fair value changes of | 0.0 | 0.0 | 0.0 | | available-for-sale assets | | | | -------------------------------------------------------------------------------- | Other changes | - | 0.0 | - | -------------------------------------------------------------------------------- | Income tax on other comprehensive | 0.0 | 0.0 | 0.0 | | income | | | | -------------------------------------------------------------------------------- | Other comprehensive income for the | 0.7 | 0.6 | -0.7 | | reporting period, net of tax | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive income for the | -3.7 | -7.4 | -54.4 | | reporting period | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | -------------------------------------------------------------------------------- | Owners of the parent | -3.7 | -7.4 | -54.3 | -------------------------------------------------------------------------------- | Non-controlling interest | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Total comprehensive income for the | -3.7 | -7.4 | -54.4 | | reporting period | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from operating | | | | | activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow before change in net | -3.2 | -8.1 | -29.8 | | working capital | | | | -------------------------------------------------------------------------------- | Change in net working capital | -3.5 | 4.4 | 28.6 | -------------------------------------------------------------------------------- | Net cash flow from operating | -6.7 | -3.8 | -1.2 | | activities | | | | -------------------------------------------------------------------------------- | Cash flow from investing activities | | | | -------------------------------------------------------------------------------- | Business combinations | 0.0 | - | -0.5 | -------------------------------------------------------------------------------- | Other purchases of non-current | -0.8 | -2.3 | -6.5 | | assets | | | | -------------------------------------------------------------------------------- | Investment in joint ventures | - | -1.8 | -2.0 | -------------------------------------------------------------------------------- | Other | - | 0.1 | 0.1 | -------------------------------------------------------------------------------- | Proceeds from sale of non-current | 0.0 | 1.0 | 1.4 | | assets | | | | -------------------------------------------------------------------------------- | Net cash flow from investing | -0.7 | -2.9 | -7.5 | | activities | | | | -------------------------------------------------------------------------------- | Cash flow before financing | -7.4 | -6.7 | -8.7 | -------------------------------------------------------------------------------- | Cash flow from financing activities | | | | -------------------------------------------------------------------------------- | Increase in non-current liabilities | 6.2 | - | 23.8 | -------------------------------------------------------------------------------- | Decrease in non-current liabilities | -0.1 | - | -11.9 | -------------------------------------------------------------------------------- | Changes in short-term liabilities | -2.0 | 5.6 | 3.2 | | (increase + / decrease -) | | | | -------------------------------------------------------------------------------- | Dividends paid | - | -3.6 | -3.9 | -------------------------------------------------------------------------------- | Other financing | 1.4 | 1.2 | 1.2 | -------------------------------------------------------------------------------- | Net cash flow from financing | 5.5 | 3.2 | 12.3 | | activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Effect of exchange rate changes | 1.6 | 0.8 | 0.4 | -------------------------------------------------------------------------------- | Net change in cash and cash | -0.3 | -2.7 | 4.0 | | equivalents | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at the | 15.6 | 11.5 | 11.5 | | beginning of period | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at the | 15.3 | 8.8 | 15.6 | | end of period | | | | -------------------------------------------------------------------------------- | Net change in cash and cash | -0.3 | -2.7 | 4.0 | | equivalents | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN EQUITY -------------------------------------------------------------------------------- | EUR million | Share | Share | Other | Reserve | Treasury | Fair | | | capital | premiu | reserves | for | shares | value | | | | m | | inv. | | reserve | | | | accoun | | unrest. | | | | | | t | | equity | | | -------------------------------------------------------------------------------- | Equity at 1 | 12.7 | 25.3 | - | 0.2 | -3.5 | 0.0 | | January, 2009 | | | | | | | -------------------------------------------------------------------------------- | Total | - | - | 0.0 | - | - | 0.0 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Other changes | - | - | - | 0.0 | 0.0 | - | | in treasury | | | | | | | | shares | | | | | | | -------------------------------------------------------------------------------- | Equity at 31 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 | | March, 2009 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Share | Share | Other | Reserve | Treasury | Fair | | | capital | premiu | reserve | for inv. | shares | value | | | | m | s | unrest. | | reserve | | | | accoun | | equity | | | | | | t | | | | | -------------------------------------------------------------------------------- | Equity at 1 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 | | January, 2010 | | | | | | | -------------------------------------------------------------------------------- | Total | - | - | - | - | - | 0.0 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Equity at 31 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 | | March, 2010 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Retained | Exchange | Equity | Non-control | Total | | | earnings | diff. | attrib.to | ling | equity | | | | | owners of | interest | | | | | | the parent | | | -------------------------------------------------------------------------------- | Equity at 1 | 89.6 | -0.5 | 123.7 | 0.0 | 123.8 | | January, 2009 | | | | | | -------------------------------------------------------------------------------- | Total | -8.1 | 0.6 | -7.4 | 0.0 | -7.4 | | comprehensive | | | | | | | income for the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Other changes in | - | - | - | 0.4 | 0.4 | | non-controlling | | | | | | | interest | | | | | | -------------------------------------------------------------------------------- | Other changes in | - | - | - | - | - | | treasury shares | | | | | | -------------------------------------------------------------------------------- | Share-based | 0.0 | - | 0.0 | - | 0.0 | | incentive plan | | | | | | -------------------------------------------------------------------------------- | Share-based | 0.0 | - | 0.0 | - | 0.0 | | incentive plan, | | | | | | | tax effect | | | | | | -------------------------------------------------------------------------------- | Dividends paid | -3.9 | - | -3.9 | - | -3.9 | -------------------------------------------------------------------------------- | Equity at 31 | 77.6 | 0.1 | 112.4 | 0.4 | 112.8 | | March, 2009 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Retained | Exchange | Equity | Non-control | Total | | | earnings | diff. | attrib. to | ling | equity | | | | | owners of | interest | | | | | | the parent | | | -------------------------------------------------------------------------------- | Equity at 1 | 35.6 | -1.3 | 69.0 | 0.3 | 69.4 | | January, 2010 | | | | | | -------------------------------------------------------------------------------- | Total | -4.4 | 0.6 | -3.7 | 0.0 | -3.7 | | comprehensive | | | | | | | income for the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Share-based | 0.0 | - | 0.0 | - | 0.0 | | incentive plan | | | | | | -------------------------------------------------------------------------------- | Share-based | 0.0 | - | 0.0 | - | 0.0 | | incentive plan, | | | | | | | tax effect | | | | | | -------------------------------------------------------------------------------- | Equity part of | 0.8 | - | 0.8 | - | 0.8 | | convertible | | | | | | | bond | | | | | | -------------------------------------------------------------------------------- | Equity at 31 | 32.0 | -0.6 | 66.1 | 0.3 | 66.4 | | March, 2010 | | | | | | -------------------------------------------------------------------------------- KEY RATIOS -------------------------------------------------------------------------------- | | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBITDA, as % of net sales (1 | 0.6 | -16.2 | -22.7 | -------------------------------------------------------------------------------- | Operating profit / loss (EBIT), as | -4.4 | -22.9 | -36.4 | | % of net sales | | | | -------------------------------------------------------------------------------- | Net result, as % of net sales | -11.4 | -20.6 | -35.3 | -------------------------------------------------------------------------------- | Gross capital expenditure, EUR | 0.8 | 4.1 | 8.5 | | million | | | | -------------------------------------------------------------------------------- | Gross capital expenditure, as % of | 2.0 | 10.4 | 5.6 | | net sales | | | | -------------------------------------------------------------------------------- | Equity ratio, % | 32.1 | 44.3 | 33.1 | -------------------------------------------------------------------------------- | Gearing, % | 125.0 | 66.5 | 114.3 | -------------------------------------------------------------------------------- | Net gearing, % | 102.0 | 58.7 | 91.9 | -------------------------------------------------------------------------------- | Net interest-bearing debt, EUR | 67.7 | 66.2 | 63.7 | | million | | | | -------------------------------------------------------------------------------- | Capital employed, end of period, | 149.4 | 187.8 | 148.6 | | EUR million | | | | -------------------------------------------------------------------------------- | Return on equity, %, annualized | -25.8 | -27.3 | -55.5 | -------------------------------------------------------------------------------- | Return on capital employed, %, | -9.9 | -17.1 | -32.1 | | annualized | | | | -------------------------------------------------------------------------------- | Number of personnel, average | 1,080 | 1,542 | 1,344 | -------------------------------------------------------------------------------- | Number of personnel, end of period | 1,072 | 1,532 | 1,160 | -------------------------------------------------------------------------------- (1 EBITDA = Operating profit / loss + depreciation, amortization and impairment. -------------------------------------------------------------------------------- | PER SHARE DATA | | | | -------------------------------------------------------------------------------- | | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Number of shares, end of period, | 78,511 | 78,536 | 78,511 | | treasury shares excluded (1,000) | | | | -------------------------------------------------------------------------------- | Number of shares, average, treasury | 78,511 | 78,536 | 78,522 | | shares excluded (1,000) | | | | -------------------------------------------------------------------------------- | Number of shares, dilution effect of | 98,650 | 78,536 | 89,143 | | the convertible bond taken into | | | | | account, average, treasury shares | | | | | excluded (1,000) | | | | -------------------------------------------------------------------------------- | EPS, basic, EUR | -0.06 | -0.10 | -0.68 | -------------------------------------------------------------------------------- | EPS, diluted, EUR | -0.06 | -0.10 | -0.68 | -------------------------------------------------------------------------------- | Equity attributable to owners of the | 0.84 | 1.43 | 0.88 | | parent per share, EUR | | | | -------------------------------------------------------------------------------- | Price per earnings per share (P/E) | -25.8 | -9.2 | -1.6 | | ratio | | | | -------------------------------------------------------------------------------- | Price per equity attributable to | 1.71 | 0.66 | 1.23 | | owners of the parent per share | | | | -------------------------------------------------------------------------------- | Market capitalization, EUR million | 113.1 | 74.6 | 84.8 | -------------------------------------------------------------------------------- | Share turnover, % (number of shares | 7.4 | 2.8 | 9.0 | | traded, % of the average number of | | | | | shares) | | | | -------------------------------------------------------------------------------- | Number of shares traded, (1,000) | 5,826 | 2,193 | 7,033 | -------------------------------------------------------------------------------- | Closing price of the share, EUR | 1.44 | 0.95 | 1.08 | -------------------------------------------------------------------------------- | Highest quoted price, EUR | 1.65 | 1.15 | 1.44 | -------------------------------------------------------------------------------- | Lowest quoted price, EUR | 1.05 | 0.92 | 0.92 | -------------------------------------------------------------------------------- | Volume-weighted average quoted price, | 1.21 | 1.15 | 1.18 | | EUR | | | | -------------------------------------------------------------------------------- DEFINITIONS OF KEY RATIOS Financial ratios EBITDA = Profit / loss before depreciation, amortization and impairment, share of joint ventures' and associates' results included Operating profit (EBIT) = Profit / loss after depreciation, amortization and impairment, share of joint ventures' and associates' results included Cash and cash equivalents = Cash + other financial assets Net interest-bearing debt = Interest-bearing liabilities - cash and cash equivalents Financial expenses = Interest expenses of financial liabilities + fees of financing arrangements + foreign currency differences of financial liabilities Equity ratio, % = Equity (Equity attributable to owners of the parent + non-controlling interest) x 100 / Total assets - advance payments received Gearing, % = Interest-bearing liabilities x 100 / Equity (Equity attributable to owners of the parent + non-controlling interest) Net gearing, % = Net interest-bearing debt x 100 / Equity (Equity attributable to owners of the parent + non-controlling interest) Return on investments, % (ROCE) = Profit / loss before taxes + financial expenses x 100 / Equity + interest-bearing liabilities (average of 1 January and end of the reporting period) Return on equity, % (ROE)= Profit / loss for the reporting period x 100 / Equity (Equity attributable to owners of the parent + non-controlling interest) (average of 1 January and end of the reporting period) Per share data Earnings per share (EPS) = Net result attributable to owners of the parent / Adjusted average number of shares Diluted earnings per share = Net result attributable to owners of the parent adjusted with the result effect of convertible bond / Adjusted average number of shares, dilution effect of the convertible bond taken into account Equity attributable to owners of the parent per share = Equity attributable to owners of the parent at end of the period / Adjusted number of shares at end of the period Average trading price = Shares traded (EUR) / Shares traded (volume) Price per earnings per share (P/E) = Share price at end of the period / Earnings per share (EPS) Price per equity per share = Share price at period end / Equity attributable to owners of the parent per share Share turnover = The proportion of number of shares traded during the period to average number of shares Market capitalization = Number of shares at end of the period x share price at end of the period Number of shares at period end = Number of issued shares - treasury shares ACCOUNTING POLICIES 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, 2009, with the exception of the following new or revised or amended standards and interpretations which have been applied from 1 January, 2010: - IFRS 3 (revised) Business Combinations - Amendments to IAS 27 Consolidated and Separate Financial Statements. - IFRS 2 Share-based Payments - Group Cash-settled Share-based Payment Transactions In addition, Glaston applies the annual Improvements to IFRSs issued in April 2009. In accordance with the revised IFRS 3 standard all acquisition-related costs arising from the business combinations made after 1 January 2010 are recognized in profit or loss and not capitalized as a part of the purchase consideration, as previously were done. In addition, all consideration transferred in the business combination are measured at the acquisition-date fair value, and liabilities classified as contingent consideration are subsequently measured at fair value with any resulting gain or loss recognized in profit or loss. For each business combination it is possible to choose, whether the non-controlling interest is measured at fair value or as the non-controlling interest's proportionate share of the acquiree's net assets. This choice has an effect on the goodwill arising from the business combination. In accordance with the revised IAS 27 standard, the effects of the transactions made with non-controlling interests are recognized in equity, if there is no change in control. These transactions do not result in goodwill or gains or losses. If the control is lost, the possible remaining ownership share is measured at fair value and the resulting gain or loss is recognized in profit or loss. Also, in accordance with the revised standard, total comprehensive income is attributed also to non-controlling interest even if this would result in the non-controlling interest having a deficit balance. The change of IAS 36 Impairment of Assets included in the annual improvements of IFRSs changes the allocation of goodwill in Glaston. Goodwill has been allocated to reportable segments aggregated from operating segments. According to the change in the standard, the unit to which the goodwill can be allocated cannot be larger than an operating segment before it is aggregated to be a part of a reportable segment. Other new or amended standards or interpretations applicable from 1 January, 2010 are not material for Glaston Group. DIVESTMENTS Glaston's joint venture, the glass processing company INTERPANE Glass Oy, was sold to Rakla Finland Oy on 9 April, 2010. INTERPANE Glass Oy began its operations on 1st April, 2009 and was owned jointly by A A A Glass & Design Finland Oy and a subsidiary of Glaston Corporation. The shareholders of INTERPANE Glass agreed on rearranging their ownership, and as a result of the agreement 100 percent of the shares in INTERPANE Glass Oy were sold to Rakla Finland Oy. After the rearrangement transaction, Glaston still holds a EUR 4 million secured loan receivable in INTERPANE Glass Oy. The result effect of the rearrangement transaction, approximately EUR -2.7 million, has been recognized in Glaston's first quarter result in financial expenses, thus the rearrangement transaction has no effect on Glaston's operating result. SEGMENT INFORMATION The reportable segments of Glaston are Machines, Services and Software Solutions. The reportable segments apply Glaston Group's accounting and measurement principles. 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 sold under Tamglass and Uniglass brands, glass pre-processing machines sold under the Bavelloni brand as well as manufacturing and sale of tools. The sale of tools was transferred to Machines segment from Services segment during the first quarter. Comparison information has been restated accordingly. Services segment includes maintenance and service of glass processing machines, machine upgrades and sale of spare parts. Services segment also provided service to a customer by operating of glass processing factory in Akaa, Finland, on behalf of the customer. Glaston has decided to cease the operations at the glass processing factory. Software Solutions segment's product offering, sold under the Albat+Wirsam brand, covers enterprise resource planning systems for the glass industry, software for window and door glass manufacturers, and software for glass processor's integrated line solutions. The unallocated operating result consists of head office operations of the Group and unallocated share of joint venture's result. -------------------------------------------------------------------------------- | Machines | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | External sales | 24.3 | 22.8 | 92.0 | -------------------------------------------------------------------------------- | Intersegment sales | 0.0 | 0.7 | 0.6 | -------------------------------------------------------------------------------- | Net sales | 24.3 | 23.6 | 92.5 | -------------------------------------------------------------------------------- | EBIT excluding non-recurring | -1.5 | -5.3 | -22.4 | | items | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. non-recurring | -6.1 | -22.3 | -24.2 | | items | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | - | -15.9 | -------------------------------------------------------------------------------- | EBIT | -1.5 | -5.3 | -38.3 | -------------------------------------------------------------------------------- | EBIT-% | -6.1 | -22.3 | -41.4 | -------------------------------------------------------------------------------- | Net working capital | 34.8 | 59.4 | 34.4 | -------------------------------------------------------------------------------- | Number of personnel, average | 640 | 872 | 778 | -------------------------------------------------------------------------------- | Number of personnel, end of | 645 | 864 | 688 | | period | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Services | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | External sales | 8.0 | 10.4 | 35.9 | -------------------------------------------------------------------------------- | Intersegment sales | 0.2 | 0.3 | 1.9 | -------------------------------------------------------------------------------- | Net sales | 8.2 | 10.7 | 37.7 | -------------------------------------------------------------------------------- | EBIT excluding non-recurring | 1.0 | -1.7 | -2.4 | | items | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. non-recurring | 12.1 | -16.0 | -6.4 | | items | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | - | -2.8 | -------------------------------------------------------------------------------- | EBIT | 1.0 | -1.7 | -5.2 | -------------------------------------------------------------------------------- | EBIT-% | 12.1 | -16.0 | -13.7 | -------------------------------------------------------------------------------- | Net working capital | 10.3 | 16.2 | 9.8 | -------------------------------------------------------------------------------- | Number of personnel, average | 192 | 387 | 291 | -------------------------------------------------------------------------------- | Number of personnel, end of | 182 | 387 | 215 | | period | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Software Solutions | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | External sales | 6.0 | 6.0 | 23.9 | -------------------------------------------------------------------------------- | Intersegment sales | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Net sales | 6.1 | 6.0 | 23.9 | -------------------------------------------------------------------------------- | Share of associates' and joint | - | - | 0.0 | | ventures' results | | | | -------------------------------------------------------------------------------- | EBIT excluding non-recurring | 0.7 | -0.4 | 0.4 | | items | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. non-recurring | 11.7 | -6.0 | 1.7 | | items | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | - | -1.7 | -------------------------------------------------------------------------------- | EBIT | 0.7 | -0.4 | -1.3 | -------------------------------------------------------------------------------- | EBIT-% | 11.7 | -6.0 | -5.5 | -------------------------------------------------------------------------------- | Net working capital | 7.5 | 7.1 | 5.8 | -------------------------------------------------------------------------------- | Number of personnel, average | 223 | 256 | 248 | -------------------------------------------------------------------------------- | Number of personnel, end of | 222 | 253 | 234 | | period | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Glaston Group | | | | -------------------------------------------------------------------------------- | Net sales | | | | -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Machines | 24.3 | 23.6 | 92.5 | -------------------------------------------------------------------------------- | Services | 8.2 | 10.7 | 37.7 | -------------------------------------------------------------------------------- | Software Solutions | 6.1 | 6.0 | 23.9 | -------------------------------------------------------------------------------- | Other and intersegment sales | -0.2 | -1.0 | -2.4 | -------------------------------------------------------------------------------- | Glaston Group total | 38.4 | 39.2 | 151.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBIT | | | | -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Machines | -1.5 | -5.3 | -22.4 | -------------------------------------------------------------------------------- | Services | 1.0 | -1.7 | -2.4 | -------------------------------------------------------------------------------- | Software Solutions | 0.7 | -0.4 | 0.4 | -------------------------------------------------------------------------------- | Other and eliminations | -1.9 | -1.6 | -9.3 | -------------------------------------------------------------------------------- | EBIT excluding non-recurring | -1.7 | -9.0 | -33.6 | | items | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | - | -21.6 | -------------------------------------------------------------------------------- | EBIT | -1.7 | -9.0 | -55.3 | -------------------------------------------------------------------------------- | Net financial items | -3.1 | 0.0 | -2.3 | -------------------------------------------------------------------------------- | Result before income taxes and | -4.8 | -9.0 | -57.6 | | non-controlling interest | | | | -------------------------------------------------------------------------------- | Income taxes | 0.4 | 0.9 | 4.0 | -------------------------------------------------------------------------------- | Result | -4.4 | -8.1 | -53.6 | -------------------------------------------------------------------------------- | Number of personnel, average | 1,080 | 1,542 | 1,344 | -------------------------------------------------------------------------------- | Number of personnel, end of | 1,072 | 1,532 | 1,160 | | period | | | | -------------------------------------------------------------------------------- Segment assets -------------------------------------------------------------------------------- | EUR million | 31.03.2010 | 31.03.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Machines | 60.2 | 82.0 | 58.0 | -------------------------------------------------------------------------------- | Services | 12.9 | 18.8 | 13.9 | -------------------------------------------------------------------------------- | Software Solutions | 7.9 | 8.1 | 6.5 | -------------------------------------------------------------------------------- | Other | 0.4 | 0.0 | 0.2 | -------------------------------------------------------------------------------- | Total segment assets | 81.4 | 108.9 | 78.7 | -------------------------------------------------------------------------------- | Other assets | 142.9 | 161.3 | 147.9 | -------------------------------------------------------------------------------- | Total assets | 224.3 | 270.2 | 226.7 | -------------------------------------------------------------------------------- | Segment liabilities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 31.03.2010 | 31.03.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Machines | 25.4 | 22.6 | 23.7 | -------------------------------------------------------------------------------- | Services | 2.6 | 2.6 | 4.1 | -------------------------------------------------------------------------------- | Software Solutions | 0.4 | 1.0 | 0.7 | -------------------------------------------------------------------------------- | Other | 0.2 | 0.5 | 0.2 | -------------------------------------------------------------------------------- | Total segment Liabilities | 28.7 | 26.7 | 28.7 | -------------------------------------------------------------------------------- | Other liabilities | 129.2 | 130.7 | 128.6 | -------------------------------------------------------------------------------- | Total liabilities | 157.9 | 157.4 | 157.3 | -------------------------------------------------------------------------------- | Net working capital | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 31.03.2010 | 31.03.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Machines | 34.8 | 59.4 | 34.4 | -------------------------------------------------------------------------------- | Services | 10.3 | 16.2 | 9.8 | -------------------------------------------------------------------------------- | Software Solutions | 7.5 | 7.1 | 5.8 | -------------------------------------------------------------------------------- | Other | 0.2 | -0.5 | 0.0 | -------------------------------------------------------------------------------- | Total Glaston Group | 52.8 | 82.2 | 50.0 | -------------------------------------------------------------------------------- In segment reporting net working capital consists of inventory, external trade receivables and trade payables and advances received. -------------------------------------------------------------------------------- | Order intake | | | | -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Machines | 20.3 | 15.7 | 98.8 | -------------------------------------------------------------------------------- | Services | 6.7 | 8.7 | 32.6 | -------------------------------------------------------------------------------- | Software Solutions | 2.4 | 2.4 | 10.6 | -------------------------------------------------------------------------------- | Total Glaston Group | 29.4 | 26.8 | 141.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales by geographical areas | -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | EMEA | 20.5 | 25.5 | 91.7 | -------------------------------------------------------------------------------- | Asia | 9.2 | 4.8 | 23.7 | -------------------------------------------------------------------------------- | America | 8.7 | 8.9 | 36.4 | -------------------------------------------------------------------------------- | Total | 38.4 | 39.2 | 151.8 | -------------------------------------------------------------------------------- NET SALES, OPERATING RESULT AND ORDER BOOK BY QUARTER -------------------------------------------------------------------------------- | Machines | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | External sales | 24.3 | 21.8 | 17.2 | 30.1 | 22.8 | -------------------------------------------------------------------------------- | Intersegment sales | 0.0 | 0.1 | 0.0 | -0.3 | 0.7 | -------------------------------------------------------------------------------- | Net sales | 24.3 | 21.9 | 17.3 | 29.8 | 23.6 | -------------------------------------------------------------------------------- | EBIT excluding | -1.5 | -7.7 | -4.9 | -4.6 | -5.3 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | -6.1 | -35.0 | -28.2 | -15.4 | -22.3 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | -12.1 | - | -3.8 | - | -------------------------------------------------------------------------------- | EBIT | -1.5 | -19.8 | -4.9 | -8.4 | -5.3 | -------------------------------------------------------------------------------- | EBIT-% | -6.1 | -90.5 | -28.2 | -28.1 | -22.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Services | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | External sales | 8.0 | 7.9 | 8.4 | 9.2 | 10.4 | -------------------------------------------------------------------------------- | Intersegment sales | 0.2 | 0.4 | 0.7 | 0.6 | 0.3 | -------------------------------------------------------------------------------- | Net sales | 8.2 | 8.2 | 9.1 | 9.7 | 10.7 | -------------------------------------------------------------------------------- | EBIT excluding | 1.0 | -0.5 | -0.1 | -0.2 | -1.7 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | 12.1 | -5.5 | -1.1 | -1.7 | -16.0 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | -2.5 | - | -0.3 | - | -------------------------------------------------------------------------------- | EBIT | 1.0 | -2.9 | -0.1 | -0.4 | -1.7 | -------------------------------------------------------------------------------- | EBIT-% | 12.1 | -35.6 | -1.1 | -4.5 | -16.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Software Solutions | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | External sales | 6.0 | 6.3 | 5.8 | 5.9 | 6.0 | -------------------------------------------------------------------------------- | Intersegment sales | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Net sales | 6.1 | 6.3 | 5.8 | 5.9 | 6.0 | -------------------------------------------------------------------------------- | Share of associates' | - | 0.0 | 0.0 | - | - | | and joint ventures' | | | | | | | results | | | | | | -------------------------------------------------------------------------------- | EBIT excluding | 0.7 | -0.2 | 0.5 | 0.5 | -0.4 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | 11.7 | -2.9 | 7.7 | 8.7 | -6.0 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | -1.5 | - | -0.3 | - | -------------------------------------------------------------------------------- | EBIT | 0.7 | -1.6 | 0.5 | 0.2 | -0.4 | -------------------------------------------------------------------------------- | EBIT-% | 11.7 | -26.2 | 7.7 | 4.1 | -6.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | | | | | | -------------------------------------------------------------------------------- | EUR million | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | 24.3 | 21.9 | 17.3 | 29.8 | 23.6 | -------------------------------------------------------------------------------- | Services | 8.2 | 8.2 | 9.1 | 9.7 | 10.7 | -------------------------------------------------------------------------------- | Software Solutions | 6.1 | 6.3 | 5.8 | 5.9 | 6.0 | -------------------------------------------------------------------------------- | Other and intersegment | -0.2 | -0.6 | -0.7 | -0.2 | -1.0 | | sales | | | | | | -------------------------------------------------------------------------------- | Glaston Group total | 38.4 | 35.8 | 31.5 | 45.2 | 39.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBIT | | | | | | -------------------------------------------------------------------------------- | EUR million | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | -1.5 | -7.7 | -4.9 | -4.6 | -5.3 | -------------------------------------------------------------------------------- | Services | 1.0 | -0.5 | -0.1 | -0.2 | -1.7 | -------------------------------------------------------------------------------- | Software Solutions | 0.7 | -0.2 | 0.5 | 0.5 | -0.4 | -------------------------------------------------------------------------------- | Other and eliminations | -1.9 | -2.7 | -2.9 | -1.9 | -1.6 | -------------------------------------------------------------------------------- | EBIT excluding | -1.7 | -11.0 | -7.4 | -6.2 | -9.0 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | -17.3 | - | -4.3 | - | -------------------------------------------------------------------------------- | EBIT | -1.7 | -28.4 | -7.4 | -10.5 | -9.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book | | | | | | -------------------------------------------------------------------------------- | EUR million | 31.3. | 31.12. | 30.9. | 30.6. | 31.3. | | | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | 32.4 | 39.8 | 35.8 | 30.8 | 38.2 | -------------------------------------------------------------------------------- | Services | 0.7 | 1.6 | 1.6 | 2.3 | 4.0 | -------------------------------------------------------------------------------- | Software Solutions | 3.8 | 4.1 | 3.5 | 4.0 | 3.7 | -------------------------------------------------------------------------------- | Total Glaston Group | 36.9 | 45.5 | 40.9 | 37.1 | 45.9 | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | EUR million | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Mortgages and pledges | | | | -------------------------------------------------------------------------------- | On own behalf | 130.8 | 0.2 | 130.8 | -------------------------------------------------------------------------------- | Guarantees | | | | -------------------------------------------------------------------------------- | On own behalf | 0.5 | 0.4 | 0.6 | -------------------------------------------------------------------------------- | On behalf of others | 0.1 | 0.1 | 0.1 | -------------------------------------------------------------------------------- | Lease obligations | 13.6 | 17.9 | 13.4 | -------------------------------------------------------------------------------- | Repurchase obligations | 0.3 | 0.4 | 0.2 | -------------------------------------------------------------------------------- | Other obligation on own behalf | - | 0.2 | - | -------------------------------------------------------------------------------- | Capital commitments in relation to | 0.6 | 1.0 | 0.7 | | interests in joint ventures | | | | -------------------------------------------------------------------------------- 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 | 31.3.20 | | 31.3.200 | | 31.12.200 | | | | 10 | | 9 | | 9 | | -------------------------------------------------------------------------------- | | Nominal | Fair | Nominal | Fair | Nominal | Fair | | | value | value | value | value | value | value | -------------------------------------------------------------------------------- | Currency | | | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Currency forwards | 1.7 | -0.1 | 5.7 | 0.0 | 2.6 | -0.1 | -------------------------------------------------------------------------------- | Commodity | | | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Electricity | 0.5 | 0.1 | - | - | - | - | | forwards | | | | | | | -------------------------------------------------------------------------------- Derivative instruments are used only for hedging purposes. Nominal values 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 | 1-3/2010 | 1-3/2009 | 1-12/2009 | | equipment | | | | -------------------------------------------------------------------------------- | Carrying amount at beginning of the | 24.7 | 35.0 | 35.0 | | period | | | | -------------------------------------------------------------------------------- | Additions | 0.1 | 0.6 | 1.2 | -------------------------------------------------------------------------------- | Disposals | 0.0 | -5.1 | -6.2 | -------------------------------------------------------------------------------- | Depreciation and amortization | -0.8 | -1.2 | -4.1 | -------------------------------------------------------------------------------- | Impairment losses and reversals of | 0.0 | -0.2 | -1.2 | | impairment losses | | | | -------------------------------------------------------------------------------- | Reclassification and other changes | -0.5 | 0.3 | -0.1 | -------------------------------------------------------------------------------- | Exchange differences | 0.3 | 0.2 | 0.0 | -------------------------------------------------------------------------------- | Carrying amount at end of the period | 23.7 | 29.7 | 24.7 | -------------------------------------------------------------------------------- At the end of the review period, Glaston Group did not have contractual commitments to acquire property, plant and equipment. SHAREHOLDER INFORMATION -------------------------------------------------------------------------------- | | Shareholder | Number of | % of | | | | shares | shares and | | | | | votes | -------------------------------------------------------------------------------- | 1 | GWS Trade Oy | 13,446,700 | 17.0 | -------------------------------------------------------------------------------- | 2 | Oy G.W.Sohlberg Ab | 12,819,400 | 16.2 | -------------------------------------------------------------------------------- | 3 | Sumelius Birgit | 3,644,200 | 4.6 | -------------------------------------------------------------------------------- | 4 | Fondita Nordic Micro Cap Investment Fund | 2,325,000 | 2.9 | -------------------------------------------------------------------------------- | 5 | Oy Investsum Ab | 1,820,000 | 2.3 | -------------------------------------------------------------------------------- | 6 | Suutarinen Helena Estate | 1,802,400 | 2.3 | -------------------------------------------------------------------------------- | 7 | Von Christierson Charlie | 1,600,000 | 2.0 | -------------------------------------------------------------------------------- | 8 | Investment Fund Aktia Capital | 1,484,650 | 1.9 | -------------------------------------------------------------------------------- | 9 | Sumelius Bjarne Henning | 1,304,840 | 1.6 | -------------------------------------------------------------------------------- | 10 | Sumelius-Koljonen Barbro | 1,206,875 | 1.5 | -------------------------------------------------------------------------------- | 11 | Sumelius-Fogelholm Birgitta Christina | 1,014,000 | 1.3 | -------------------------------------------------------------------------------- | 12 | Evli Alexander Management Oy | 838,582 | 1.1 | -------------------------------------------------------------------------------- | 13 | Sumelius Bertil Christer | 803,800 | 1.0 | -------------------------------------------------------------------------------- | 14 | Huber Karin | 800,800 | 1.0 | -------------------------------------------------------------------------------- | 15 | ABN Amro Small Cap Mutual Fund | 735,000 | 0.9 | -------------------------------------------------------------------------------- | 16 | Fontell Niilo Armas | 640,700 | 0.8 | -------------------------------------------------------------------------------- | 17 | Nordea Life Assurance Finland Ltd | 635,207 | 0.8 | -------------------------------------------------------------------------------- | 18 | Pihkala-Vlassis Anna Marja | 615,520 | 0.8 | -------------------------------------------------------------------------------- | 19 | Special Investment Fund Eq | 600,000 | 0.8 | | | Pikkujättiläiset | | | -------------------------------------------------------------------------------- | 20 | Mariatorp Oy | 550,000 | 0.7 | -------------------------------------------------------------------------------- | Total 20 largest shareholders | 48,687,674 | 61.4 | -------------------------------------------------------------------------------- | Other shareholders | 30,587,126 | 38.5 | -------------------------------------------------------------------------------- | Not in the book-entry securities system (joint | 75,200 | 0.1 | | account) | | | -------------------------------------------------------------------------------- | Total | 79,350,000 | 100.0 | -------------------------------------------------------------------------------- | Treasury shares | -838,582 | 1.1 | -------------------------------------------------------------------------------- | Total excluding treasury shares | 78,511,418 | | -------------------------------------------------------------------------------- RELATED PARTY TRANSACTIONS Glaston Group's related parties include the parent, subsidiaries, associates and joint ventures. Related parties also include the members of the Board of Directors and the Group's Executive Management Group, the CEO and their family members. Glaston follows the same commercial terms in transactions with associates and joint ventures and other related parties as with third parties. During the review period Glaston's related party transactions included leasing of premises to a joint venture. In addition, the Group has leased premises from companies owned by individuals belonging to the management. The lease payments were in January - March EUR 0.2(0.2) million. During the review period there were no related party transactions whose terms would differ from the terms in transactions with third parties. Transactions with joint ventures and associates Glaston has leased property to the joint venture during the review period. In addition, Glaston has an interest-bearing loan receivable from INTERPANE Glass Oy, as well as other receivables. The shares in INTERPANE Glass Oy were sold to Rakla Finland Oy on 9 April, 2010. In January - March 2009 Glaston had no transactions with joint ventures. INTERPANE Glass Oy became Glaston's joint venture on 31 March, 2009. Glaston did not have transactions with the associate. -------------------------------------------------------------------------------- | Transactions with joint ventures | | | | | EUR million | | | | -------------------------------------------------------------------------------- | | 1-3/2010 | 1-3/2009 | 1-12/2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales to joint ventures | - | - | 0.0 | -------------------------------------------------------------------------------- | Other operating income from joint | 0.1 | - | 0.3 | | ventures | | | | -------------------------------------------------------------------------------- | Interest income from joint ventures | 0.1 | - | 0.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Receivables and liabilities to joint | 1-3/2010 | 1-3/2009 | 1-12/2009 | | ventures | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current receivables | 1.6 | - | 1.2 | -------------------------------------------------------------------------------- | Non-current loan receivables | 3.2 | 7.1 | 5.9 | -------------------------------------------------------------------------------- | Trade payables | 0.0 | - | 0.1 | --------------------------------------------------------------------------------
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