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2010-02-10 12:00:00 CET 2010-02-10 12:00:09 CET REGULATED INFORMATION Glaston Oyj Abp - Financial Statement ReleaseGlaston Corporation Financial Statements 1 January - 31 December 2009GLASTON CORPORATION Financial Statements Review 10.2.2010 at 13.00 Glaston Corporation Financial Statements 1 January - 31 December 2009 - Orders received in January-December totalled EUR 141.9 (230.5) million. Orders received in the fourth quarter totalled EUR 41.6 (44.6) million. The volume of orders received grew 26% compared with the previous quarter. - Glaston's order book on 31 December 2009 stood at EUR 45.5 (62.5) million. - Consolidated net sales totalled EUR 151.8 (270.4) million. Final quarter net sales totalled EUR 35.8 (68.9) million. - The operating result was a loss of EUR 55.3 (6.1 loss) million, i.e. -36.4 (-2.3)% of net sales - The operating result excluding non-recurring items was a loss of EUR 33.6 (6.2 profit) million, i.e. -22.2 (+2.3)% of net sales. The final quarter operating result was a loss of EUR 11.0 (0.3 loss) million, i.e. -30.8 (-0.4)% of net sales. - Non-recurring items of EUR -21.6 (-12.3) million were recognised for the full year, and EUR -17.3 (-12.3) million in the final quarter. - Return on capital employed (ROCE) was -32.1 (-2.3)%. - Earnings per share were EUR -0.68 (-0.12), of which the final quarter contribution was EUR -0.34 (-0.16). - The Board of Directors proposes to the Annual General Meeting that no dividend be distributed. - Due to efficiency measures already implemented, Glaston starts 2010 on a better foundation and expects 2010 net sales to be at least at the 2009 level and the operating result to significantly improve. President & CEO Arto Metsänen: 2009 was very difficult for Glaston due to the economic recession. Demand for glass processing machines was at an exceptionally low level and net sales declined sharply. The emphasis of machines was on sales of single machines. Demand for more extensive deliveries and solar energy investments was weak and projects were postponed to a later date. In a difficult market situation, the Services segment performed relatively well, however. During 2009 efficiency measures initiated in late 2008 were continued. In addition to these an extensive adjustment programme was initiated in the final quarter of 2009 and the employee negotiations were completed by the end of December. We will adjust our production capacity, optimise our product range and simplify the structure of our sales organisation. The agreed measures will cut Glaston's workforce at most by around 400 employees. Thanks to the efficiency measures performed, we begin 2010 on a better foundation. Our current production structure provides us with a good starting point. We are strengthening our production in China and are investing in developing both technical and sourcing expertise. In the early part of the 2010, the emphasis will be on completing the efficiency improvement programme. New segment information On 22 April 2009, Glaston announced that it was changing its organisation, and the reportable segments are now Machines, Services and Software Solutions. The Pre-processing and Heat Treatment business areas have been combined to form the Machines segment. At the same time, maintenance and service business was separated from machine operations into its own Services segment. The Machines segment comprises tempering, bending and laminating machines sold under the Tamglass and Uniglass brands, glass pre-processing machines sold under the Bavelloni brand, and tool manufacturing. The Services segment consists of glass processing machine maintenance and service activity, sales of spare parts and tools, and the operation of the glass processing factory in Akaa, Finland, as a service activity on behalf of a customer. The Software Solutions segment includes enterprise resource planning systems for the glass industry and sold under the Albat+Wirsam brand. The geographical areas reported quarterly are, EMEAI (Europe, Middle East, Africa, India, Pakistan and Bangladesh), Asia and America. Markets In 2009 the economic recession strongly influenced demand for glass processing machines and the market situation was extremely difficult throughout the year. Glaston's markets in different countries developed unevenly during the year. As the European, Middle Eastern and North American weakened further, positive development was perceptible in the South American and Chinese. Machines Despite a weakening of demand, the Machines segment maintained its market position in 2009. Owing to the challenging market situation, price competition intensified during the year, particularly with respect to Asian competitors. Demand for glass processing machines weakened significantly in all market areas, except for South America, where demand remained high throughout the year. In Central Europe, demand in the German market stood out positively from the rest of the EMEAI area. At the end of 2009, a gradual recovery of the market was also evident in the Asian and Australian markets. Particularly in the Chinese market, recovery of the architectural glass segment was accelerated by local stimulus measures initiated during the year. Demand for solar energy glass solutions weakened as customers postponed decision-making on projects due to economic uncertainty and financial market instability. Demand for comprehensive (One-Stop-Partner) deliveries was very low and the emphasis on machine sales was on single machines. In 2009 efficiency improvement played a key role in developing the operations of the Machines segment. An efficiency programme initiated in 2008 continued and, additionally, new cost-cutting programmes were launched, which included significant personnel reductions in Finland and Italy. Moreover, the product portfolio was rationalised and machine production location arrangements effected by transferring the focus of production and sourcing more towards China. The measures were more extensive on the pre-processing technology. Orders received in the Machines segment totalled EUR 88.5 (144.4) million in 2009. January-December net sales totalled EUR 82.2 (168.5) million. Services In 2009 the Services segment's strongest market areas were Germany, Brazil, Australia and New Zealand. In the EMEAI area demand for maintenance services and upgrades slowed down except for Germany and the UK. The Middle East was quieter than expected. Demand in the APAC area declined, except for Australia and New Zealand. In the United States demand was subdued. The economic recession negatively impacted customer demand, particularly in the solar energy, architectural and automotive glass segments. Lower utilisation rates of glass processing machines reduced the need for spare parts. The outsourcing trend initiated in previous years came to a halt. Although market demand weakened, even so the volume of the Services segment's service contracts and maintenance work grew and demand for training services clearly increased. Demand for spare parts fell significantly, however. There was greater emphasis on machine modernisations as glass processors focused on machine upgrades instead of new investments. The modernisations were related to energy-saving, automation systems and technology upgrades. At the end of the year, there was also increased demand for modernisation related to boosting performance and improving the quality of architectural glass. In 2009 the significance of geographical areas and operating close to the customer was highlighted. Orivesi upgrade production was transferred to Tampere and the integration of Uniglass machine maintenance into the rest of the service organisation was completed. A servicing point for Bavelloni machines was established in the Middle East and a new distribution centre set up in Cinnaminson, USA. Orders received in the Services segment totalled EUR 42.8 (72.3) million in 2009. January-December net sales totalled EUR 48.1 (76.0) million. Software Solutions In 2009 Software Solutions improved its market position in Europe due to strong demand from medium-sized companies. Although demand among international operators generally declined, medium-sized companies invested strongly in renewing their production processes towards a higher degree of automation, greater flexibility and shorter delivery times. The Software Solutions segment did not lose market share, even though the market was at a standstill or weakened outside Europe. A factor driving demand in 2009 was the segment's ability to deliver highly integrated software solutions that facilitate increased automation of glass processing. The Software Solutions segment succeeded in adjusting operations to correspond with shrinking markets by strengthening product management and implementation structures and processes as well as by prioritising customer orientation. In 2009 a more prominent role was given to CAD and line control systems in the product range. The Software Solutions segment developed customised product applications for the Asian market. New-generation software systems developed for the window industry facilitated better integration of work flow. The Panorama and AWFactory products launched in 2008 and intended to manage integrated line control systems were delivered to selected customers as pilot projects during the year. Orders received in the Software Solutions segment totalled EUR 10.6 (13.9) million in 2009. January-December net sales totalled EUR 23.9 (28.2) million. Orders received Glaston's orders received during the financial year totalled EUR 141.9 (230.5) million. Of orders received, the Machines segment accounted for 62.4%, Services 30.2% and Software Solutions 7.4%. Orders received during the final quarter totalled EUR 41.6 (44.6) million. Order book Glaston's order book on 31 December 2009 was EUR 45.5 (62.5) million. Of the order book, the Machines segment accounted for EUR 39.8 (47.3) million, Services EUR 1.6 (11.6) million and Software Solutions EUR 4.1 (3.5) million. -------------------------------------------------------------------------------- | Order book, EUR | 31.12.2009 | 31.12.2008 | Change, % | | million | | | | -------------------------------------------------------------------------------- | Machines | 39.8 | 47.3 | -16% | -------------------------------------------------------------------------------- | Services | 1.6 | 11.6 | -86% | -------------------------------------------------------------------------------- | Software | 4.1 | 3.5 | 17% | | Solutions | | | | -------------------------------------------------------------------------------- | Total | 45.5 | 62.5 | -27% | -------------------------------------------------------------------------------- Net sales and operating profit Glaston's January-December net sales totalled EUR 151.8 (270.4) million. Of the net sales, the Machines segment accounted for EUR 82.2 (168.5) million, Services EUR 48.1 (76.0) million and Software Solutions EUR 23.9 (28.2) million. Final quarter net sales totalled EUR 35.8 (68.9) million. Of the final quarter net sales, the Machines segment accounted for EUR 19.1 (43.9) million, Services EUR 11.0 (19.2) million and Software Solutions EUR 6.3 (6.6) million. -------------------------------------------------------------------------------- | Net sales, EUR million | 2009 | 2008 | -------------------------------------------------------------------------------- | Machines | 82.2 | 168.5 | -------------------------------------------------------------------------------- | Services | 48.1 | 76.0 | -------------------------------------------------------------------------------- | Software Solutions | 23.9 | 28.2 | -------------------------------------------------------------------------------- | Parent company, elim. | -2.4 | -2.2 | -------------------------------------------------------------------------------- | Total | 151.8 | 270.4 | -------------------------------------------------------------------------------- The operating result, excluding non-recurring items, was a loss of EUR 33.6 (6.2 profit) million, i.e. -22.2 (+2.3)% of net sales. The operating result for the final quarter, excluding non-recurring items, was a loss of EUR 11.0 (0.3 loss) million. The operating result was a loss of EUR 55.3 (6.1 loss) million. Non-recurring items of EUR - 21.6 (-12.3) million were recognised for the full year. Non-recurring items totalling EUR -17.3 (-12.3) million were recognised in the final quarter. The non-recurring items of 2009 consist mainly of impairment losses recognized of goodwill and intangible assets (EUR 10.9 million), expenses arising from merging business areas (EUR 3.3 million) and restructuring programs initiated during the latter part of 2009 (EUR 7.6 million). In addition, the non-recurring items include reversals of provisions made in 2008 (EUR 1.1 million). The Machines segment's operating result in January-December was a loss of EUR 38.8 (4.4 loss) million and in the final quarter a loss of EUR 20.4 (9.1 loss) million. The 2009 operating result, excluding non-recurring items, was a loss of 22.9 (5.1 profit) million and in the final quarter a loss of EUR -8.3 (0.4 profit) million. The strong decline in sales weakened the profitability of the Machines segment, and the substantial cost-cutting and adjustment measures were insufficient to balance sharply falling net sales. In addition, intense price competition affected market prices, weakening the profitability of both the Machines segment and the entire sector. The Services segment's operating result in January-December was a loss of EUR 4.7 (2.7 profit) million and in the final quarter a loss of EUR 2.3 (1.3 loss) million. The segment's operating result, excluding non-recurring items, was a loss of EUR 1.9 (4.9 profit) million for the full year and a profit of EUR 0.2 (1.0 profit) million in the final quarter. The Services result was heavily burdened by Tamglass Glass Processing's operating loss of EUR 4.6 (6.3 loss) million. The Software Solutions segment's operating result in January-December was a loss of EUR 1.3 (3.2 profit) million and in the final quarter a loss of EUR 1.6 (0.4 loss) million. The segment's operating result, excluding non-recurring items, was a profit of EUR 0.4 (3.7 profit) million for the full year and a loss of EUR 0.2 (0.1 profit) million in the final quarter. -------------------------------------------------------------------------------- | Operating result, excluding | 1-12/2009 | 1-12/2008 | | non-recurring items EUR million | | | -------------------------------------------------------------------------------- | Machines | -22.9 | 5.1 | -------------------------------------------------------------------------------- | Services | -1.9 | 4.9 | -------------------------------------------------------------------------------- | Software Solutions | 0.4 | 3.7 | -------------------------------------------------------------------------------- | Parent company, elim. | -9.3 | -7.6 | -------------------------------------------------------------------------------- | Total | -33.6 | 6.2 | -------------------------------------------------------------------------------- | Non-recurring items | -21.6 | -12.3 | -------------------------------------------------------------------------------- | Operating result after | -55.3 | -6.1 | | non-recurring items | | | -------------------------------------------------------------------------------- The result for the financial year was a loss of EUR 53.6 (9.2 loss) million. Return on capital employed (ROCE) was -32.1 (-2.3)%. Earnings per share were EUR -0.68 (-0.12) Fourth-quarter earnings per share were EUR -0.34 (-0.16). Finance and cash flow The Group's financial position remained reasonable. The Group's financial position was affected mainly by changes in working capital and cash flow from operating activities as well as by a convertible bond (EUR 23.8 million) issued in June. Cash flow from operating activities was negative EUR -1.2 million, of which change in net working capital was EUR +28.6 million. Cash flow from investments was EUR -7.5 (-13.4) million. Cash flow from financing activities in January-December was EUR +12.3 (+37.8) million, including dividends paid in the review period of EUR 3.9 (7.8) million. The equity ratio on 31 December 2009 was 33.1 (45.8)%. The Group's liquid funds on 31 December 2009 totalled EUR 15.6 (11.5) million. Interest-bearing net debt totalled EUR 63.7 (57.9) million and net gearing was 91.9 (46.8)%. In the liquidity management, Glaston mainly utilises a committed revolving credit facility. The revolving credit facility was renewed in November 2009. At the end of 2009, the size of the new revolving credit facility was EUR 74 million, of which EUR 42 million was in use at the end of 2009. The revolving credit facility includes covenant terms and other commitments which are linked to consolidated key figures. If the covenant terms are not fulfilled, negotiations with the lenders will be initiated. These negotiations may lead to notice of termination of financial agreements. The terms of agreement also include restrictions on the payment of dividends. Based on the restrictions dividend distribution is conditional on Glaston's net gearing such that net gearing before and after a possible dividend payment does not exceed 80%. Efficiency programme To improve profitability and adjust operations to the market situation, efficiency measures were initiated throughout the Group in September 2008, and these measures were continued during 2009. In addition to the efficiency measures under way, Glaston announced in April that it would change its structure to improve profitability. The Pre-processing and Heat Treatment business areas were combined to form the Machines segment. The Machines segment's new global organisation was appointed and was active by June 2009. The operational restructuring proceeded in the autumn, focusing on completing integration and further improving profitability, developing the global production structure, enhancing sourcing activity and streamlining the product portfolio. Operational efficiency was enhanced by adjusting production, and the production unit located in Mexico was closed in March. The factory located in Cinnaminson, USA was closed in December 2009 and production of tempering machines manufactured in the USA was transferred to Finland and China. In autumn 2009, Glaston initiated a programme to develop spare parts and tool operations as well as logistics, and inventories in Mexico and Greensboro were transferred to Cinnaminson, USA. In the Services business, cost-cutting and operational adjustment measures continued. A unit manufacturing upgrade products in Orivesi, Finland was closed. The Group had substantial temporary lay-off programmes under way in Finland and Italy during the year. Working time was shortened in Germany and the USA. In October Glaston announced an extensive adjustment programme to reorganise its operations. The employee negotiations related to the programme were completed during December and included, among other things, production capacity adjustment measures, product range optimisation, and simplification of the sales structure. The need to cut jobs amounts at most to around 400. The programme's annual additional savings are around EUR 12 million and they will be implemented mainly in the first half of 2010. The non-recurring costs arising from the planned measures amount to EUR 7.6 million and they have been recognised in the final quarter of 2009. Most of these non-recurring costs will impact cash flow in 2010. The planned cost savings from the efficiency measures total around EUR 30 million. Related non-recurring costs totalled EUR 11.4 million for 2009, of which EUR 7.6 million were related to the efficiency programme initiated in autumn, and the rest to the efficiency programme launched in spring 2009, which was realized at only EUR 3.8 million instead of the previously estimated amount. Research and product development Research and product development expenditure in 2009 totalled EUR 13.6 (14.4) million, representing 8.9 (5.3)% of net sales. Due to the difficult market situation and intensified competition, product development focused during the year on developing features of machines already on the market to allow the addition of new functionalities to machines delivered earlier. Moreover, the localisation of products to correspond with the requirements of the Chinese market continued. During the year, Glaston launched a number of new heat treatment technology machines, such as the Tamglass ProE MAGNUM+ 3396 and 33120 machines, the Tamglass Syncrobend and the Tamglass Compact. The Tamglass ProE MAGNUM+ is the market's largest flat tempering machine and the Tamglass Compact is a basic flat tempering machine for smaller glass sizes. The Tamglass Syncrobend is a high-capacity machine intended for the tempering of double-curved glass. The machine can handle rapid changes of glass type and variable series sizes, offering good capability for flexible manufacturing of many types of glass. In addition to these, the cutting product range was supplemented by a machine for cutting laminated and coated glass. The CNC product range was also expanded with a new type of machine. The product development priority in the Software Solutions segment was the further development of products and, among other things, the refining of product variations for the Asian market. During 2009 Glaston's product development operating practices were enhanced. Product development of the former Pre-processing and Heat Treatment business areas was centralised into the Machines segment. In addition, the Uniglass product portfolio was also incorporated into the product development of the Machines segment. As a consequence of the closure of the factory in the USA, production and development of the CHF product range was transferred to China and Finland. Capital expenditure, depreciation and amortisation Glaston's gross capital expenditure totalled EUR 8.5 (18.4) million. The most significant capital expenditure during 2009 was related to the ERP project as well as to a joint venture founded in connection with the sale of the glass processing operations. During the financial year, depreciation and amortisation of intangible assets and property, plant and equipment totalled EUR 8.4 (8.7) million. In addition, impairment losses totalled EUR 12.5 (2.6) million, of which goodwill accounted for EUR 7.8 million. Group structural changes As part of an efficiency programme initiated in 2008, operations of Uniglass Engineering Oy were transferred to Glaston's factory in Tampere, Finland. Operations at the Uniglass factory in Ylöjärvi, Finland, ended on 31 March 2009. Glaston's subsidiary Tamglass Glass Processing Ltd. sold its insulation and architectural glass processing operations to INTERPANE Glass Oy in March. INTERPANE Glass Oy is a Glaston joint venture. As of 1 April 2009, Glaston's glass processing operations consist only of solar reflector production at Akaa, Finland, as a service activity on behalf of a customer. The Pre-processing and Heat Treatment business areas were merged in April to form the Machines segment. To boost sales of tools and ensure synergy benefits in spare parts sales and deliveries, tool sales were transferred during the third quarter from the Machines segment to the Services segment, with manufacturing and development of tools remaining in the Machines segment. Glaston's two companies in Mexico were merged in the second quarter, Glaston UK Ltd and Albat+Wirsam Software Ltd in the UK at the beginning of the third quarter, and Albat+ Wirsam Software AG and Cantor Software GmbH in Germany at the beginning of September. In Italy, Glaston Italy S.p.A. and DiaPol S.r.l. were merged in December. Changes in the company's management Henrik Reims was appointed Senior Vice President Sales and Marketing as of 1 April 2009, Topi Saarenhovi Senior Vice President of the Machines segment as of 22 April 2009 and Manne Tiensuu Glaston's Senior Vice President, Human Resources as of 15 May 2009. Arto Metsänen M.Sc.(Eng.) was appointed on 5 August 2009 as the company's new President & CEO, and he started in his position on 1 September 2009. Personnel Glaston initiated negotiations to adjust human resources significantly to the weakened market situation in late 2008. Substantial temporary lay-offs in Finland and Italy were initiated in late 2008 and in early 2009 and continued during the year. It was decided in March to temporarily lay off all Glaston Finland Oy personnel, excluding maintenance staff, a total around 200 people, for 10-18 weeks, and the lay-offs continued in autumn 2009. In Italy 25% of personnel, i.e. 100 people, have been regularly temporarily laid off since December 2008. A shortening of working time was agreed in Germany and the USA. In October 2009, Glaston initiated an extensive adjustment programme covering the entire Glaston personnel worldwide. The most substantial adjustment measures were directed at Italy, where it was agreed to cut around 140 jobs, and in Finland, where 50 employees were made redundant in December 2009 following negotiations. On 31 December 2009, Glaston had a total of 1,160 (1,541) employees. Of the Group's employees, 20% worked in Finland and 53% elsewhere in the EMEAI area, 15% in Asia and 13% in the Americas. The average number of employees was 1,344 (1,519). Environment Glaston aims to be as environmentally friendly as possible in its operations. Glaston is continually developing its processes in order to take the principles of sustainable development better into account. As a rule, Glaston's own production operations do not, however, load the environment significantly. In product development, paying due attention to energy efficiency occupies a key role and the goal is to make glass processing machines as energy-efficient as possible. The glass processing machines manufactured by Glaston have long lifetimes, and the entire life cycle of a machine is taken into account in its design. Glass processing machines are developed and manufactured to withstand constant use at high production capacities. The modernisation of a machine with new technical features will extend the life of the machine and will, for example, reduce energy consumption in glass processing. Glaston pays special attention to the recyclability of machine materials, particularly with respect to components susceptible to wear and tear and thus often changed. Environmental problems and discussion of climate change have increased demand for products that have a positive impact on the environment. Besides other types of glass, the machines manufactured by Glaston are also used to produce energy glass, which reduces buildings' energy consumption, as well as glass used in applications that produce solar energy. Risks and risk management Glaston operates globally and changes in the development of the world economy directly affect the Group's operations and risks. The Board of Directors of Glaston Corporation is responsible for the Group's risk management policy and supervises its implementation. The President and CEO and the Executive Management Group, reporting to the Board of Directors, are responsible for risk management operating practices, implementation and monitoring. The development of comprehensive risk management is a Group-level responsibility in accordance with risk management operating instructions. The business areas and units are responsible for recognising, managing and reporting risks associated with their own operations. The Group Treasury handles centrally the management of the Group's financial risks in accordance with a treasury policy approved by and within the restrictions issued by the Board of Directors. A strategic risk for Glaston is above all the possible arrival on the market of a competing machine technology, which would require Glaston to make considerable product development investments. Moreover, loss of the Group's market shares, particularly in the most strongly emerging markets (Asia, the Middle East) is a strategic risk. Implementing the Group's strategy may require company acquisitions, the possible failure of which would affect financial performance and Glaston's risk profile. Glaston's most significant operational risks include management of large customer projects, the availability and price development of components, management of the subcontractor network, and the availability and permanence of personnel. Glaston is developing its information systems and despite careful planning, temporary disruptions to operations might be associated with the introduction stages. Financial risks connected with operations, such as foreign exchange, interest rate, financing and counterparty risks and, particularly in the last year, credit loss and liquidity risks have grown. The nature of international business means that the Group has risks arising from fluctuations in foreign exchange rates. Changes in interest rates represent an interest rate risk. Credit and counterparty risk arises from risk associated with the payment period granted to customers. The liquidity risk comes from the fact that the Group's negotiated credit facilities are insufficient to cover the financial needs of the business. Financial risks and their management are explained in more detail in the consolidated financial statements. In protecting against possible accident risk, worldwide insurance programmes covering all companies are used, in addition to preventive risk management measures. The coverage of these programmes is regularly reviewed as part of overall risk management. Shares and share prices Glaston Corporation's paid and registered share capital on 31 December 2009 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 the financial year, 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. During 2009, some 28,789 of the company's own shares, transferred in 2008 to key individuals on the basis of the share-based incentive scheme, were returned to Glaston Corporation, as the terms for the performance period of the incentive scheme were not fulfilled. 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. Each share has a counter book value of EUR 0.16. During 2009, a total of 7,032,751 of the company's shares were traded, representing around 9% of the average number of shares. The lowest price paid for a share was EUR 0.92 and the highest price EUR 1.44. The volume-weighted average price of shares traded during the financial year was EUR 1.18. The closing price on 31 December 2009 was EUR 1.08. On 31 December 2009, the market capitalisation of the company's shares, treasury shares excluded, was EUR 84.8 (71.5) million. The equity per share attributable to the owners of the parent was EUR 0.88 (1.58). Share-based incentive schemes On 9 May 2007, Glaston's Board of Directors decided on a share-based incentive scheme for the Glaston Group's key individuals. The scheme has three one-year performance periods, namely the calendar years 2007, 2008 and 2009. The scheme will be settled in 2008, 2009 and 2010 in shares and cash. The proportion to be paid in cash is intended to cover taxes and tax-related costs arising to key personnel from the bonus. Shares cannot be disposed of within two years of the bonus being awarded. The bonus from the incentive scheme for the 2009 performance period was based on growth of the Group's operating profit and a reduction of net working capital. If the targets set for the performance criteria of the incentive scheme for the years 2007-2009 are achieved in full, a maximum of 652,500 shares, namely 217,000 shares per year, will be given as bonus from the scheme, and cash paid will be at most the amount needed for the taxes and tax-related costs arising to key individuals from the bonus at the time the bonus is paid. Due to Glaston's weak financial performance, Glaston's Board of Directors decided that no return on the incentive scheme will be paid for the 2009 reward period. In addition to the above mentioned share-based payment plan, the CEO of Glaston Corporation has a separate share-based payment incentive plan. According to the plan, the CEO will receive 50,000 shares in Glaston Corporation one year after the date when his employment in Glaston began. Decisions of the Annual General Meeting The Annual General Meeting of Glaston Corporation was held in Helsinki on 17 March 2009. The Annual General Meeting approved the financial statements and consolidated financial statements for 2008 and released the President and CEO and the Board of Directors from liability for the financial period 1 January-31 December 2008. The Annual General Meeting approved a dividend of EUR 0.05 per share. The Annual General Meeting confirmed that the following will continue on 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. 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 remuneration of the other Members of the Board at EUR 20,000 euros per year. 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. The Annual General Meeting re-elected as auditor the authorised public accounting firm KPMG Oy Ab, with the responsible auditor being Sixten Nyman APA. Annual General Meeting approved amendments to the Articles 2, 11 and 12 of the Articles of Association 2. Authorisations given by the Annual General Meeting The 2009 Annual General Meeting of Glaston Corporation authorised the Board of Directors to decide on the acquisition of the company's own shares up to a maximum of 7,000,000 shares. The authorisation is valid for 18 months from the decision of 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 such that, in exemption to the pre-emptive subscription right of shareholders, a maximum of 7,800,000 new shares can be issued and a maximum of 7,800,000 own shares held by the company can be conveyed, but such that the total number of shares to be issued and/or conveyed does not exceed 7,800,000. The latter authorisation is not, however, valid on the date of these financial statements. Decisions of the Extraordinary Meeting of Shareholders An Extraordinary meeting of Shareholders of Glaston Corporation, held on 8 June 2009, authorised the Board of Directors to decide of the issuing of shares and the issuing of special rights granting entitlement to shares, referred to in Chapter 10 Section 1 of the Companies Act. The number of shares to be issued under the authorisation may not exceed a total of 25,000,000 shares. If all shares that may be issued under the authorisation were issued, the number of shares issued would correspond to approximately 24% of all the shares in the company. The Board of Directors shall decide on the conditions of the issuing of shares and of special rights granting entitlement to shares. The authorisation concerns both the issuing of new shares as well as the conveyance of treasury shares. The issuing of shares and of special rights granting entitlement to shares may be carried out in exception to shareholders' pre-emptive rights. The authorisation is effective until the next Annual General Meeting, however at the latest until 30 June 2010, and it cancels the authorisation to decide on the issuing of shares given by the Annual General Meeting on 17 March 2009. Convertible bond On 16 June 2009, the Board of Directors decided, based on the authorisation granted by the Extraordinary Meeting of Shareholders, to issue a convertible bond up to a maximum principal of EUR 30,000,000, divided into negotiable promissory notes of nominal value EUR 50,000. The bonds were issued in exception to the shareholders' pre-emptive subscription rights to investors selected by the Board of Directors. The bond was subscribed to a total of EUR 23,750,000 and the Board of Directors approved the subscriptions on 17 June 2009. The bonds strengthen the company's financial position, optimise the capital structure and facilitate investments. The terms and conditions of the convertible bond were presented in a stock exchange release dated 16 June 2009. On 28 September 2009 a total of 475 subscribed promissory notes were accepted for public trading on the official list of Nasdaq OMX Helsinki Ltd. Board of Directors' proposal for the distribution of profits The distributable funds of Glaston Corporation, the parent of Glaston Group, are EUR 47,632,812, of which EUR -4,577,977 represents the net loss for the financial year. The Board of Directors proposes to the Annual General Meeting that no dividend be distributed from the result for the year and from retained earnings. EUR 47,632,812 would be left in distributable funds. Events after the review period Juha Liettyä B.Sc. (Eng.) was appointed as SVP of Glaston's Services segment of 2 January 2010. Liettyä has been employed by the company since 1986. 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. A significant proportion of the uncertainties are beyond the company management's control. Due to the economic recession Glaston's market has decreased. The subdued market has also led to overcapacity. In addition, difficulties related to customers' financing arrangements may limit investment opportunities, 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. Raw material prices have levelled off and subcontracting capacity problems have nearly disappeared. Subcontractors' adjustment measures to the prevailing market situation may influence Glaston's operations. Glaston recognised an impairment loss on goodwill of EUR 7.8 million in the 2009 result. If the international economic crisis is prolonged and the recovery of the sector 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. A market recovery was already perceptible at the end of 2009 in Asia, particularly in China. In South America demand was good throughout 2009 and this possible trend is expected to continue. Demand for solar energy projects is also expected to develop positively. The priorities for operational development in 2010 are improving profitability and completing the adjustment measures initiated in 2009. The cornerstones of our operations will remain the architectural glass segments 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 starts 2010 on a better foundation. It is expected that 2010 net sales will be at least at the 2009 level and that the operating result will significantly improve. Helsinki, 10 February 2010 Glaston Corporation Board of Directors Sender: Glaston Corporation Agneta Selroos IR and 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 quoted on the NASDAQ OMX Helsinki Mid Cap List. www.glaston.net GLASTON CORPORATION CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 31 DECEMBER 2009 These condensed financial statements are audited. Auditor's report has been given on 10 February, 2010. Quarterly information and interim reports 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 | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Assets | | | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Goodwill | 58.4 | 66.2 | -------------------------------------------------------------------------------- | Other intangible assets | 19.7 | 22.5 | -------------------------------------------------------------------------------- | Property, plant and equipment | 24.7 | 35.0 | -------------------------------------------------------------------------------- | Investments in joint ventures and associates | 0.4 | 0.9 | -------------------------------------------------------------------------------- | Available-for-sale assets | 0.3 | 0.3 | -------------------------------------------------------------------------------- | Loan receivables | 5.9 | - | -------------------------------------------------------------------------------- | Deferred tax assets | 8.5 | 7.9 | -------------------------------------------------------------------------------- | Total non-current assets | 117.9 | 132.9 | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Inventories | 37.4 | 53.9 | -------------------------------------------------------------------------------- | Receivables | | | -------------------------------------------------------------------------------- | Trade and other receivables | 52.2 | 83.3 | -------------------------------------------------------------------------------- | Assets for current tax | 3.6 | 4.4 | -------------------------------------------------------------------------------- | Total receivables | 55.8 | 87.6 | -------------------------------------------------------------------------------- | Cash equivalents | 15.6 | 11.5 | -------------------------------------------------------------------------------- | Total current assets | 108.8 | 153.1 | -------------------------------------------------------------------------------- | Total assets | 226.7 | 285.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Equity and liabilities | | | -------------------------------------------------------------------------------- | Equity | | | -------------------------------------------------------------------------------- | Share capital | 12.7 | 12.7 | -------------------------------------------------------------------------------- | Share premium account | 25.3 | 25.3 | -------------------------------------------------------------------------------- | Other reserves | 0.0 | - | -------------------------------------------------------------------------------- | Reserve for invested unrestricted equity | 0.2 | 0.2 | -------------------------------------------------------------------------------- | Treasury shares | -3.5 | -3.5 | -------------------------------------------------------------------------------- | Fair value reserve | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Retained earnings and exchange differences | 87.9 | 98.2 | -------------------------------------------------------------------------------- | Net result attributable to owners of the | -53.6 | -9.1 | | parent | | | -------------------------------------------------------------------------------- | Equity attributable to owners of the parent | 69.0 | 123.7 | -------------------------------------------------------------------------------- | Non-controlling interest | 0.3 | 0.0 | -------------------------------------------------------------------------------- | Total equity | 69.4 | 123.8 | -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Convertible bond | 20.1 | - | -------------------------------------------------------------------------------- | Non-current interest-bearing liabilities | 4.7 | 16.4 | -------------------------------------------------------------------------------- | Non-current interest-free liabilities and | 7.3 | 8.0 | | provisions | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 6.6 | 8.4 | -------------------------------------------------------------------------------- | Total non-current liabilities | 38.8 | 32.9 | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Current interest-bearing liabilities | 54.4 | 53.0 | -------------------------------------------------------------------------------- | Current provisions | 9.8 | 10.6 | -------------------------------------------------------------------------------- | Trade and other payables | 53.2 | 63.8 | -------------------------------------------------------------------------------- | Liabilities for current tax | 1.0 | 1.9 | -------------------------------------------------------------------------------- | Total current liabilities | 118.5 | 129.3 | -------------------------------------------------------------------------------- | Total liabilities | 157.3 | 162.2 | -------------------------------------------------------------------------------- | Total equity and liabilities | 226.7 | 285.9 | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED INCOME STATEMENT -------------------------------------------------------------------------------- | EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 35.8 | 68.9 | 151.8 | 270.4 | -------------------------------------------------------------------------------- | Other operating income | 0.2 | 0.0 | 1.1 | 0.4 | -------------------------------------------------------------------------------- | Expenses | -50.6 | -76.9 | -185.8 | -265.8 | -------------------------------------------------------------------------------- | Share of associates and | -0.5 | 0.0 | -1.5 | 0.0 | | joint ventures' result | | | | | -------------------------------------------------------------------------------- | Depreciation, amortization | -13.3 | -4.7 | -20.9 | -11.2 | | and impairment | | | | | -------------------------------------------------------------------------------- | Operating profit / loss | -28.4 | -12.6 | -55.3 | -6.1 | -------------------------------------------------------------------------------- | Gains from assets held for | - | 0.0 | - | 0.1 | | sale | | | | | -------------------------------------------------------------------------------- | Other financial items, net | -0.7 | -2.2 | -2.3 | -2.1 | -------------------------------------------------------------------------------- | Result before income taxes | -29.0 | -14.8 | -57.6 | -8.1 | -------------------------------------------------------------------------------- | Income taxes | 2.2 | 2.5 | 4.0 | -1.1 | -------------------------------------------------------------------------------- | Profit / loss for the period | -26.8 | -12.3 | -53.6 | -9.2 | -------------------------------------------------------------------------------- | Attributable to: | | | | | -------------------------------------------------------------------------------- | Non-controlling interests | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Owners of the parent | -26.8 | -12.3 | -53.6 | -9.1 | -------------------------------------------------------------------------------- | Total | -26.8 | -12.3 | -53.6 | -9.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, EUR, | -0.34 | -0.16 | -0.68 | -0.12 | | basic | | | | | -------------------------------------------------------------------------------- | Earnings per share, EUR, | -0.34 | -0.16 | -0.68 | -0.12 | | diluted | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit / loss, as | -79.2 | -18.3 | -36.4 | -2.3 | | % of net sales | | | | | -------------------------------------------------------------------------------- | Profit / loss for the | -74.9 | -17.8 | -35.3 | -3.4 | | period, as % of net sales | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-recurring items included | -17.3 | -12.3 | -21.6 | -12.3 | | in operating profit / loss | | | | | -------------------------------------------------------------------------------- | Operating profit / loss, | -11.0 | -0.3 | -33.6 | 6.2 | | non-recurring items excluded | | | | | -------------------------------------------------------------------------------- | Operating profit / loss, | -30.8 | -0.4 | -22.2 | 2.3 | | non-recurring items | | | | | | excluded, as % of net sales | | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | 1-12/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit / loss for the period | -26.8 | -12.3 | -53.6 | -9.2 | -------------------------------------------------------------------------------- | Other comprehensive income | | | | | -------------------------------------------------------------------------------- | Total exchange differences on | 0.1 | 0.1 | -0.7 | 0.7 | | translating foreign operations | | | | | -------------------------------------------------------------------------------- | Fair value changes of | - | 0.0 | - | 0.0 | | effective cash flow hedges | | | | | | reclassified in profit or loss | | | | | -------------------------------------------------------------------------------- | Fair value changes of | 0.0 | 0.0 | 0.0 | 0.0 | | available-for-sale assets | | | | | -------------------------------------------------------------------------------- | Other reclassifications | - | 0.0 | - | 0.0 | -------------------------------------------------------------------------------- | Income tax on other | 0.0 | 0.0 | 0.0 | 0.0 | | comprehensive income | | | | | -------------------------------------------------------------------------------- | Other comprehensive income for | 0.0 | 0.0 | -0.7 | 0.7 | | the reporting period, net of | | | | | | tax | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive income for | -26.9 | -12.2 | -54.4 | -8.5 | | the reporting period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | -------------------------------------------------------------------------------- | Non-controlling interest | -0.1 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Owners of the parent | -26.8 | -12.2 | -54.3 | -8.5 | -------------------------------------------------------------------------------- | Total comprehensive income for | -26.9 | -12.2 | -54.4 | -8.5 | | the reporting period | | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | Cash flows from operating activities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow before change in net working | -29.8 | 7.2 | | capital | | | -------------------------------------------------------------------------------- | Change in net working capital | 28.6 | -30.4 | -------------------------------------------------------------------------------- | Net cash flow from operating activities | -1.2 | -23.3 | -------------------------------------------------------------------------------- | Cash flow from investing activities | | | -------------------------------------------------------------------------------- | Business combinations | -0.5 | 0.7 | -------------------------------------------------------------------------------- | Other purchases of non-current assets | -6.5 | -14.5 | -------------------------------------------------------------------------------- | Investment in joint ventures | -2.0 | - | -------------------------------------------------------------------------------- | Other | 0.1 | - | -------------------------------------------------------------------------------- | Proceeds from sale of non-current assets | 1.4 | 0.4 | -------------------------------------------------------------------------------- | Net cash used in investing activities | -7.5 | -13.4 | -------------------------------------------------------------------------------- | Cash flow before financing | -8.7 | -36.7 | -------------------------------------------------------------------------------- | Cash flow from financing activities | | | -------------------------------------------------------------------------------- | Increase in non-current liabilities | 23.8 | 17.5 | -------------------------------------------------------------------------------- | Decrease in non-current liabilities | -11.9 | - | -------------------------------------------------------------------------------- | Changes in non-current loan receivables | - | 0.3 | | (increase - / decrease +) | | | -------------------------------------------------------------------------------- | Increase in short-term financing | 142.4 | 395.1 | -------------------------------------------------------------------------------- | Decrease in short-term financing | -139.3 | -367.3 | -------------------------------------------------------------------------------- | Dividends paid | -3.9 | -7.8 | -------------------------------------------------------------------------------- | Other financing | 1.2 | 0.0 | -------------------------------------------------------------------------------- | Net cash used in financing activities | 12.3 | 37.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Effect of exchange rate changes | 0.4 | -1.0 | -------------------------------------------------------------------------------- | Net change in cash and cash equivalents | 4.0 | 0.1 | -------------------------------------------------------------------------------- | Cash and cash equivalents at the beginning of | 11.5 | 11.4 | | period | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at the end of | 15.6 | 11.5 | | period | | | -------------------------------------------------------------------------------- | Net change in cash and cash equivalents | 4.0 | 0.1 | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN EQUITY -------------------------------------------------------------------------------- | EUR million | Share | Share | Other | Reserve | Treasury | Fair | | | capita | premium | reserves | for | shares | value | | | l | account | | invested | | re-ser | | | | | | unrestr. | | ve | | | | | | equity | | | -------------------------------------------------------------------------------- | Equity at 1 | 12.7 | 25.3 | - | 0.3 | -3.9 | - | | January, 2008 | | | | | | | -------------------------------------------------------------------------------- | Total | - | - | - | - | - | 0.0 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Disposal of | - | - | - | -0.1 | 0.4 | - | | treasury shares | | | | | | | -------------------------------------------------------------------------------- | Tax effect of | - | - | - | 0.0 | - | - | | net income | | | | | | | | recognized | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Equity at 31 | 12.7 | 25.3 | - | 0.2 | -3.5 | 0.0 | | December, 2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Share | Share | Other | Reserve | Treasury | Fair | | | capital | premiu | reserves | for | shares | value | | | | m | | invested | | reserve | | | | accoun | | unrest. | | | | | | t | | equity | | | -------------------------------------------------------------------------------- | Equity at 1 | 12.7 | 25.3 | - | 0.2 | -3.5 | 0.0 | | January, 2009 | | | | | | | -------------------------------------------------------------------------------- | Total | - | - | - | - | - | 0.0 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Other changes | - | - | - | 0.0 | 0.0 | - | | in treasury | | | | | | | | shares | | | | | | | -------------------------------------------------------------------------------- | Other changes | - | - | 0.0 | - | - | - | -------------------------------------------------------------------------------- | Tax effect of | - | - | - | - | - | - | | net income | | | | | | | | recognized | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Equity at 31 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 | | December, 2009 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Hedging | Retaine | Exch. | Equity | Non-contr | Total | | | reserve | d | differ | attrib. | . | equity | | | | earning | -ences | to | interest | | | | | s | | owners | | | | | | | | of the | | | | | | | | parent | | | -------------------------------------------------------------------------------- | Equity at 1 | 0.0 | 106.8 | -1.2 | 139.9 | 0.0 | 139.9 | | January, 2008 | | | | | | | -------------------------------------------------------------------------------- | Total | 0.0 | -9.2 | 0.7 | -8.5 | 0.0 | -8.5 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Disposal of | - | - | - | 0.3 | - | 0.3 | | treasury | | | | | | | | shares | | | | | | | -------------------------------------------------------------------------------- | Tax effect of | - | - | - | 0.0 | - | 0.0 | | net income | | | | | | | | recognized | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Share-based | - | -0.2 | - | -0.2 | - | -0.2 | | incentive plan | | | | | | | -------------------------------------------------------------------------------- | Share-based | - | 0.0 | - | 0.0 | - | 0.0 | | incentive | | | | | | | | plan, tax | | | | | | | | effect | | | | | | | -------------------------------------------------------------------------------- | Reversal of | - | 0.0 | - | 0.0 | - | 0.0 | | unpaid | | | | | | | | dividends | | | | | | | -------------------------------------------------------------------------------- | Dividends paid | - | -7.8 | - | -7.8 | - | -7.8 | -------------------------------------------------------------------------------- | Equity at 31 | 0.0 | 89.6 | -0.5 | 123.7 | 0.1 | 123.8 | | December, 2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Hedging | Retaine | Exch. | Equity | Non-cont | Total | | | reserve | d | differ- | attrib. | r. | equity | | | | earning | ences | to | interest | | | | | s | | owners | | | | | | | | of the | | | | | | | | parent | | | -------------------------------------------------------------------------------- | Equity at 1 | - | 89.6 | -0.5 | 123.7 | 0.0 | 123.8 | | January, 2009 | | | | | | | -------------------------------------------------------------------------------- | Total | - | -53.6 | -0.7 | -54.3 | 0.0 | -54.4 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Other changes | - | 0.1 | - | 0.1 | 0.3 | 0.4 | | in | | | | | | | | non-controllin | | | | | | | | g interest | | | | | | | -------------------------------------------------------------------------------- | Other changes | - | - | - | - | - | - | | in treasury | | | | | | | | shares | | | | | | | -------------------------------------------------------------------------------- | Other changes | - | 0.0 | - | 0.0 | - | 0.0 | -------------------------------------------------------------------------------- | Tax effect of | - | - | - | - | - | - | | net income | | | | | | | | recognized | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Share-based | - | 0.1 | - | 0.1 | - | 0.1 | | incentive plan | | | | | | | -------------------------------------------------------------------------------- | Share-based | - | 0.0 | - | 0.0 | - | 0.0 | | incentive | | | | | | | | plan, tax | | | | | | | | effect | | | | | | | -------------------------------------------------------------------------------- | Equity part of | - | 3.4 | - | 3.4 | - | 3.4 | | convertible | | | | | | | | bond | | | | | | | -------------------------------------------------------------------------------- | Reversal of | - | 0.0 | - | 0.0 | - | 0.0 | | unpaid | | | | | | | | dividends | | | | | | | -------------------------------------------------------------------------------- | Dividends paid | - | -3.9 | - | -3.9 | - | -3.9 | -------------------------------------------------------------------------------- | Equity at 31 | - | 35.6 | -1.3 | 69.0 | 0.3 | 69.4 | | December, 2009 | | | | | | | -------------------------------------------------------------------------------- KEY RATIOS -------------------------------------------------------------------------------- | | 31.12.2009 | 31.12.2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBITDA, as % of net sales (1 | -22.7 | 1.9 | | -------------------------------------------------------------------------------- | Operating profit / loss (EBIT), as % | -36.4 | -2.3 | | | of net sales | | | | -------------------------------------------------------------------------------- | Net result, as % of net sales | -35.3 | -3.4 | | -------------------------------------------------------------------------------- | Gross capital expenditure, EUR | 8.5 | 18.4 | | | million | | | | -------------------------------------------------------------------------------- | Gross capital expenditure, as % of | 5.6 | 6.8 | | | net sales | | | | -------------------------------------------------------------------------------- | Equity ratio, % | 33.1 | 45.8 | | -------------------------------------------------------------------------------- | Gearing, % | 114.3 | 56.1 | | -------------------------------------------------------------------------------- | Net gearing, % | 91.9 | 46.8 | | -------------------------------------------------------------------------------- | Net interest-bearing debt, EUR | 63.7 | 57.9 | | | million | | | | -------------------------------------------------------------------------------- | Capital employed, end of period, EUR | 148.6 | 193.2 | | | million | | | | -------------------------------------------------------------------------------- | Return on equity, %, annualized | -55.5 | -7.0 | | -------------------------------------------------------------------------------- | Return on capital employed, %, | -32.1 | -2.3 | | | annualized | | | | -------------------------------------------------------------------------------- | Number of personnel, average | 1,344 | 1,519 | | -------------------------------------------------------------------------------- | Number of personnel, end of period | 1,160 | 1,541 | | -------------------------------------------------------------------------------- (1 EBITDA = Operating profit / loss + depreciation, amortization and impairment. -------------------------------------------------------------------------------- | PER SHARE DATA | | | | -------------------------------------------------------------------------------- | | | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | | Number of shares, end of period, treasury | 78,511 | 78,540 | | | shares excluded (1,000) | | | -------------------------------------------------------------------------------- | | Number of shares, average, treasury shares | 78,522 | 78,507 | | | excluded (1,000) | | | -------------------------------------------------------------------------------- | | Number of shares, diluted by the convertible | 89,143 | - | | | bond, average, treasury shares excluded | | | | | (1,000) | | | -------------------------------------------------------------------------------- | | EPS, basic, EUR | -0.68 | -0.12 | -------------------------------------------------------------------------------- | | EPS, diluted, EUR | -0.68 | -0.12 | -------------------------------------------------------------------------------- | | Equity attributable to owners of the parent | 0.88 | 1.58 | | | per share, EUR | | | -------------------------------------------------------------------------------- | | Dividend per share, EUR (* | 0.00 | 0.05 | -------------------------------------------------------------------------------- | | Dividend payout ratio, % | - | -43.0 | -------------------------------------------------------------------------------- | | Dividend yield | - | 5.5 | -------------------------------------------------------------------------------- | | Price per earnings per share (P/E) ratio | -1.6 | -7.8 | -------------------------------------------------------------------------------- | | Price per equity attributable to owners of | 1.23 | 0.58 | | | the parent per share | | | -------------------------------------------------------------------------------- | | Market capitalization, EUR million | 84.8 | 71.5 | -------------------------------------------------------------------------------- | | Share turnover, % (number of shares traded, | 9.0 | 5.1 | | | % of the average number of shares) | | | -------------------------------------------------------------------------------- | | Number of shares traded, (1,000) | 7,033 | 3,965 | -------------------------------------------------------------------------------- | | Closing price of the share, EUR | 1.08 | 0.91 | -------------------------------------------------------------------------------- | | Highest quoted price, EUR | 1.44 | 3.33 | -------------------------------------------------------------------------------- | | Lowest quoted price, EUR | 0.92 | 0.87 | -------------------------------------------------------------------------------- | | Volume-weighted average quoted price, EUR | 1.18 | 2.07 | -------------------------------------------------------------------------------- (* 2009: The proposal of the Board of Directors. 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 financial statements of Glaston Group are prepared in accordance with International Financial Reporting Standards (IFRS), including International Accounting Standards (IAS) and Interpretations issued by the International Financial Reporting Interpretations Committee (SIC and IFRIC). International Financial Reporting Standards are standards and their interpretations adopted in accordance with the procedure laid down in regulation (EC) No 1606/2002 of the European Parliament and of the Council. The Notes to the Financial Statements are also in accordance with the Finnish Accounting Act and Ordinance and the Finnish Companies' Act. These condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standard IAS 34 Interim Reporting as approved by the European Union. They do not include all the information required for full annual financial statements. The accounting principles applied in these condensed consolidated 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, 2009: - IAS 23 (revised) Borrowing Costs - IFRS 8 Operating Segments - Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation - Amendment to IAS 39 Financial Instruments: Recognition and Measurement - Eligible Hedged Items - Amendments to IFRS 7 Financial Instruments: Disclosures - Improving Disclosures about Financial Instruments - Amendments to IFRIC 9 and IAS 39: Embedded Derivatives In addition, Glaston applies the annual Improvements to IFRSs issued in May 2008. Applying IFRS 8 did not have any material effect on the financial information of Glaston. Applying revised IAS Borrowing Costs changed Glaston's accounting principles from 1 January, 2009. From that date on the borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized to the acquisition cost of the asset. The capitalization applies mainly to property, plant and equipment and intangible assets. Other new or amended standards or interpretations applicable from 1 January, 2009 are not material for Glaston Group. Glaston will apply the following new or revised or amended standards and interpretations 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 will apply 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 will be recognized in profit or loss and not capitalized as a part of the purchase consideration, as currently is done. In addition, all consideration transferred in the business combination will be measured at the acquisition-date fair value, and liabilities classified as contingent consideration will subsequently be measured at fair value with any resulting gain or loss recognized in profit or loss. For each business combination it will be possible to choose, whether the non-controlling interest will be measured at fair value or as the non-controlling interest's proportionate share of the acquiree's net assets. This choice will have 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 will be recognized in equity, if there is no change in control. These transactions will not result in goodwill or gains or losses. If the control is lost, the possible remaining ownership share will be measured at fair value and the resulting gain or loss will be recognized in profit or loss. Also, in accordance with the revised standard, total comprehensive income will be attributed also to non-controlling interest even if this will 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 will change the allocation of goodwill in Glaston. Currently goodwill is 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. Glaston will apply the following new or revised or amended standards and interpretations from 1 January, 2011: - IAS 24 (revised) Related Party Disclosures - Amendments to IAS 32 Financial Instruments: Presentation - Classification of Rights Issues - Amendment to IFRIC 14 IAS 19 Prepayments of a Minimum Funding Requirement - IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments can have an effect on Glaston's result, if Glaston's convertible bond is converted to equity instruments. Other new or amended standards or interpretations applicable from 1 January, 2011 are not material for Glaston Group. Glaston will apply the following new or revised or amended standards and interpretations from 1 January, 2013: - IFRS 9 Financial Instruments DIVESTMENTS Glaston's subsidiary Tamglass Glass Processing Ltd. sold in March its insulated and architectural glass processing operations to INTERPANE Glass Oy. INTERPANE Glass Oy began its operations on 1 April, 2009. The divested operations had net sales of approximately EUR 14 million in 2008 and 93 employees at the end of March. The personnel were transferred to INTERPANE Glass Oy. The transaction was an asset deal, consisting of, among others, tangible assets and inventory. The deal was financed mainly through vendor financing given by Glaston. Glaston has also invested EUR 2.0 million in the equity of INTERPANE Glass Oy. In addition, Glaston is committed to invest additional EUR 0.7 million in INTERPANE's equity. Also the other party of the transaction is committed to make additional investments in INTERPANE's equity. INTERPANE Glass Oy is a company owned jointly by Georg F. Hesselbach through his company A A A Glass & Design Finland Oy, and a subsidiary of Glaston Corporation. The shareholders of INTERPANE Glass Oy have entered into a shareholders' agreement which incorporates put and call options enabling the shareholders to rearrange their ownership shares in the company in the future. INTERPANE Glass Oy is a joint venture of Glaston, and it is consolidated in Glaston's consolidated financial statements using the equity method. CHANGES IN JOINT VENTURES The Chinese company Glaston Tools (Sanhe) Co., Ltd. was consolidated in 2008 as a joint venture using the equity method and not as a subsidiary despite of the 70 per cent ownership of Glaston, because Glaston was not considered to have control of the company. From 1 January, 2009, Glaston Tools (Sanhe) Co., Ltd. has been consolidated as a subsidiary as Glaston has gained control of the company. There have not been changes in the ownership of the company. INTERPANE Glass Oy became a joint venture of Glaston on 31 March, 2009. 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 tools manufacturing. Services segment includes maintenance and service of glass processing machines, sale of spare parts and tools. Services segment also provides service to a customer by operating of glass processing factory in Akaa, Finland, on behalf of the customer. 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 in 2009 also unallocated share of joint venture's result. Glaston's chief operating decision maker is the CEO of Glaston Corporation, with the help of the Group's Executive Management Group. The segment information reported to the the chief operating decision maker includes segment revenue (net sales), operating result, orders received and order book as well as operative net working capital. Operative net working capital includes external trade receivables, inventory, external trade payables and advance payments received. -------------------------------------------------------------------------------- | Machines | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- | External sales | 19.0 | 43.7 | 81.7 | 167.6 | -------------------------------------------------------------------------------- | Intersegment sales | 0.1 | 0.3 | 0.6 | 0.9 | -------------------------------------------------------------------------------- | Net sales | 19.1 | 43.9 | 82.2 | 168.5 | -------------------------------------------------------------------------------- | Share of associates' and joint | - | 0.0 | - | 0.0 | | ventures' results | | | | | -------------------------------------------------------------------------------- | EBIT excluding non-recurring | -8.3 | 0.4 | -22.9 | 5.1 | | items | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. non-recurring items | -43.2 | 0.8 | -27.9 | 3.0 | -------------------------------------------------------------------------------- | Non-recurring items | -12.1 | -9.5 | -15.9 | -9.5 | -------------------------------------------------------------------------------- | EBIT | -20.4 | -9.1 | -38.8 | -4.4 | -------------------------------------------------------------------------------- | EBIT-% | -106.7 | -20.7 | -47.2 | -2.6 | -------------------------------------------------------------------------------- | Net working capital | | | 29.9 | 64.1 | -------------------------------------------------------------------------------- | Number of personnel, average | | | 759 | 804 | -------------------------------------------------------------------------------- | Number of personnel, end of | | | 674 | 841 | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Services | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- | External sales | 10.6 | 18.7 | 46.2 | 74.8 | -------------------------------------------------------------------------------- | Intersegment sales | 0.4 | 0.5 | 1.9 | 1.2 | -------------------------------------------------------------------------------- | Net sales | 11.0 | 19.2 | 48.1 | 76.0 | -------------------------------------------------------------------------------- | EBIT excluding non-recurring | 0.2 | 1.0 | -1.9 | 4.9 | | items | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. non-recurring | 1.5 | 5.1 | -4.0 | 6.5 | | items | | | | | -------------------------------------------------------------------------------- | Non-recurring items | -2.5 | -2.2 | -2.8 | -2.2 | -------------------------------------------------------------------------------- | EBIT | -2.3 | -1.3 | -4.7 | 2.7 | -------------------------------------------------------------------------------- | EBIT-% | -21.2 | -6.5 | -9.7 | 3.5 | -------------------------------------------------------------------------------- | Net working capital | | | 14.3 | 22.7 | -------------------------------------------------------------------------------- | Number of personnel, average | | | 310 | 434 | -------------------------------------------------------------------------------- | Number of personnel, end of | | | 228 | 414 | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Software Solutions | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- | External sales | 6.3 | 6.6 | 23.9 | 28.1 | -------------------------------------------------------------------------------- | Intersegment sales | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Net sales | 6.3 | 6.6 | 23.9 | 28.2 | -------------------------------------------------------------------------------- | Share of associates' and joint | 0.0 | 0.0 | 0.0 | 0.0 | | ventures' results | | | | | -------------------------------------------------------------------------------- | EBIT excluding non-recurring | -0.2 | 0.1 | 0.4 | 3.7 | | items | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. non-recurring | -2.9 | 1.8 | 1.7 | 13.3 | | items | | | | | -------------------------------------------------------------------------------- | Non-recurring items | -1.5 | -0.6 | -1.7 | -0.6 | -------------------------------------------------------------------------------- | EBIT | -1.6 | -0.4 | -1.3 | 3.2 | -------------------------------------------------------------------------------- | EBIT-% | -26.2 | -6.5 | -5.5 | 11.3 | -------------------------------------------------------------------------------- | Net working capital | | | 5.8 | 5.8 | -------------------------------------------------------------------------------- | Number of personnel, average | | | 247 | 255 | -------------------------------------------------------------------------------- | Number of personnel, end of | | | 234 | 261 | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Glaston Group | | | | | -------------------------------------------------------------------------------- | EUR million | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 10-12/ | 10-12/ | 1-12/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- | Machines | 19.1 | 43.9 | 82.2 | 168.5 | -------------------------------------------------------------------------------- | Services | 11.0 | 19.2 | 48.1 | 76.0 | -------------------------------------------------------------------------------- | Software Solutions | 6.3 | 6.6 | 23.9 | 28.2 | -------------------------------------------------------------------------------- | Other and intersegment sales | -0.6 | -0.8 | -2.4 | -2.2 | -------------------------------------------------------------------------------- | Glaston Group total | 35.8 | 68.9 | 151.8 | 270.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBIT | | | | | -------------------------------------------------------------------------------- | EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- | Machines | -8.3 | 0.4 | -22.9 | 5.1 | -------------------------------------------------------------------------------- | Services | 0.2 | 1.0 | -1.9 | 4.9 | -------------------------------------------------------------------------------- | Software Solutions | -0.2 | 0.1 | 0.4 | 3.7 | -------------------------------------------------------------------------------- | Other and eliminations | -2.7 | -1.8 | -9.3 | -7.6 | -------------------------------------------------------------------------------- | EBIT excluding non-recurring | -11.0 | -0.3 | -33.6 | 6.2 | | items | | | | | -------------------------------------------------------------------------------- | Non-recurring items | -17.3 | -12.3 | -21.6 | -12.3 | -------------------------------------------------------------------------------- | EBIT | -28.4 | -12.6 | -55.3 | -6.1 | -------------------------------------------------------------------------------- | Net financial items | -0.7 | -2.2 | -2.3 | -2.0 | -------------------------------------------------------------------------------- | Result before income taxes and | -29.0 | -14.8 | -57.6 | -8.1 | | non-controlling interest | | | | | -------------------------------------------------------------------------------- | Income taxes | 2.2 | 2.5 | 4.0 | -1.1 | -------------------------------------------------------------------------------- | Result | -26.8 | -12.3 | -53.6 | -9.2 | -------------------------------------------------------------------------------- | Number of personnel, average | | | 1,344 | 1,519 | -------------------------------------------------------------------------------- | Number of personnel, end of | | | 1,160 | 1,541 | | period | | | | | -------------------------------------------------------------------------------- The non-recurring items of 2009 consist mainly of impairment losses recognized of goodwill and intangible assets (EUR 10.9 million), expenses arising from merging business areas (EUR 3.3 million) and restructuring programs initiated during the latter part of 2009 (EUR 7.6 million). In addition, the non-recurring items include reversals of provisions made in 2008 (EUR 1.1 million). Non-recurring items of 2008, in total EUR 12.3 million, consist of expenses arising from rationalization measures as well as non-recurring costs for agreements and doubtful receivables from previous years. In addition, the non-recurring items include impairment losses of assets. -------------------------------------------------------------------------------- | Segment assets | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Machines | 53.5 | 90.9 | -------------------------------------------------------------------------------- | Services | 18.4 | 25.4 | -------------------------------------------------------------------------------- | Software Solutions | 6.5 | 7.0 | -------------------------------------------------------------------------------- | Other | 0.2 | 0.0 | -------------------------------------------------------------------------------- | Total segment assets | 78.7 | 123.3 | -------------------------------------------------------------------------------- | Other assets | 147.9 | 162.6 | -------------------------------------------------------------------------------- | Total assets | 226.7 | 285.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segment liabilities | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Machines | 23.6 | 26.8 | -------------------------------------------------------------------------------- | Services | 4.1 | 2.7 | -------------------------------------------------------------------------------- | Software Solutions | 0.7 | 1.2 | -------------------------------------------------------------------------------- | Other | 0.2 | 0.4 | -------------------------------------------------------------------------------- | Total segment liabilities | 28.7 | 31.2 | -------------------------------------------------------------------------------- | Other liabilities | 128.6 | 131.0 | -------------------------------------------------------------------------------- | Total liabilities | 157.3 | 162.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net working capital | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Machines | 29.9 | 64.1 | -------------------------------------------------------------------------------- | Services | 14.3 | 22.7 | -------------------------------------------------------------------------------- | Software Solutions | 5.8 | 5.8 | -------------------------------------------------------------------------------- | Other | 0.0 | -0.4 | -------------------------------------------------------------------------------- | Total Glaston Group | 50.0 | 92.1 | -------------------------------------------------------------------------------- In segment reporting net working capital consists of inventory, external trade receivables and trade payables and advances received. Order intake has been restated to include also order intake of the tools business. -------------------------------------------------------------------------------- | Order intake | | | -------------------------------------------------------------------------------- | EUR million | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | Machines | 88.5 | 144.4 | -------------------------------------------------------------------------------- | Services | 42.8 | 72.3 | -------------------------------------------------------------------------------- | Software Solutions | 10.6 | 13.9 | -------------------------------------------------------------------------------- | Total Glaston Group | 141.9 | 230.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales by geographical areas | | | -------------------------------------------------------------------------------- | | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | EMEA | 104.8 | 178.0 | -------------------------------------------------------------------------------- | Asia | 14.2 | 36.5 | -------------------------------------------------------------------------------- | America | 32.7 | 56.0 | -------------------------------------------------------------------------------- | Total | 151.8 | 270.4 | -------------------------------------------------------------------------------- NET SALES, OPERATING RESULT AND ORDER BOOK BY QUARTER EUR million -------------------------------------------------------------------------------- | Machines | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- | External | 19.0 | 14.7 | 27.4 | 20.5 | 43.7 | 38.0 | 46.3 | 39.6 | | sales | | | | | | | | | -------------------------------------------------------------------------------- | Intersegment | 0.1 | 0.0 | -0.3 | 0.7 | 0.3 | 0.2 | 0.3 | 0.2 | | sales | | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 19.1 | 14.7 | 27.1 | 21.2 | 43.9 | 38.2 | 46.6 | 39.7 | -------------------------------------------------------------------------------- | Share of | - | - | - | - | 0.0 | 0.0 | 0.0 | 0.0 | | associates' | | | | | | | | | | and joint | | | | | | | | | | ventures' | | | | | | | | | | results | | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -8.3 | -4.9 | -4.5 | -5.2 | 0.4 | -0.4 | 3.1 | 2.0 | | excluding | | | | | | | | | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | -43.2 | -33. | -16.7 | -24.7 | 0.8 | -1.0 | 6.7 | 5.0 | | non-recurring | | 1 | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Non-recurring | -12.1 | - | -3.8 | - | -9.5 | - | - | - | | items | | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -20.4 | -4.9 | -8.3 | -5.2 | -9.1 | -0.4 | 3.1 | 2.0 | -------------------------------------------------------------------------------- | EBIT-% | -106.7 | -33. | -30.6 | -24.7 | -20.7 | -1.0 | 6.7 | 5.0 | | | | 1 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Services | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- | External sales | 10.6 | 11.0 | 11.9 | 12.8 | 18.7 | 20.0 | 19.9 | 16.2 | -------------------------------------------------------------------------------- | Intersegment | 0.4 | 0.7 | 0.6 | 0.3 | 0.5 | 0.2 | 0.3 | 0.1 | | sales | | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 11.0 | 11.6 | 12.4 | 13.0 | 19.2 | 20.2 | 20.2 | 16.4 | -------------------------------------------------------------------------------- | EBIT excluding | 0.2 | -0.1 | -0.2 | -1.7 | 1.0 | 2.0 | 1.4 | 0.5 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | 1.5 | -0.8 | -2.0 | -13. | 5.1 | 10.0 | 7.2 | 2.9 | | non-recurring | | | | 3 | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Non-recurring | -2.5 | - | -0.3 | - | -2.2 | - | - | - | | items | | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -2.3 | -0.1 | -0.5 | -1.7 | -1.3 | 2.0 | 1.4 | 0.5 | -------------------------------------------------------------------------------- | EBIT-% | -21.2 | -0.8 | -4.1 | -13. | -6.5 | 10.0 | 7.2 | 2.9 | | | | | | 3 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Software | | | | | | | | | | Solutions | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12 | 7-9/ | 4-6/ | 1-3/ | | | 2009 | 2009 | 2009 | 2009 | / | 2008 | 2008 | 2008 | | | | | | | 2008 | | | | -------------------------------------------------------------------------------- | External sales | 6.3 | 5.8 | 5.9 | 6.0 | 6.6 | 7.8 | 6.4 | 7.3 | -------------------------------------------------------------------------------- | Intersegment | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | sales | | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 6.3 | 5.8 | 5.9 | 6.0 | 6.6 | 7.8 | 6.4 | 7.3 | -------------------------------------------------------------------------------- | Share of | 0.0 | 0.0 | - | - | 0.0 | - | - | - | | associates' and | | | | | | | | | | joint ventures' | | | | | | | | | | results | | | | | | | | | -------------------------------------------------------------------------------- | EBIT excluding | -0.2 | 0.5 | 0.5 | -0.4 | 0.1 | 1.4 | 1.2 | 1.0 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | -2.9 | 7.7 | 8.7 | -6.0 | 1.8 | 18.1 | 19.3 | 13.2 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Non-recurring | -1.5 | - | -0.3 | - | -0.6 | - | - | - | | items | | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -1.6 | 0.5 | 0.2 | -0.4 | -0.4 | 1.4 | 1.2 | 1.0 | -------------------------------------------------------------------------------- | EBIT-% | -26.2 | 7.7 | 4.1 | -6.0 | -6.5 | 18.1 | 19.3 | 13.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- | Machines | 19.1 | 14.7 | 27.1 | 21.2 | 43.9 | 38.2 | 46.6 | 39.7 | -------------------------------------------------------------------------------- | Services | 11.0 | 11.6 | 12.4 | 13.0 | 19.2 | 20.2 | 20.2 | 16.4 | -------------------------------------------------------------------------------- | Software | 6.3 | 5.8 | 5.9 | 6.0 | 6.6 | 7.8 | 6.4 | 7.3 | | Solutions | | | | | | | | | -------------------------------------------------------------------------------- | Other and | -0.6 | -0.7 | -0.2 | -1.0 | -0.8 | -0.4 | -0.6 | -0.4 | | intersegmen | | | | | | | | | | t sales | | | | | | | | | -------------------------------------------------------------------------------- | Glaston | 35.8 | 31.5 | 45.2 | 39.2 | 68.9 | 65.8 | 72.6 | 63.1 | | Group total | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBIT | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- | Machines | -8.3 | -4.9 | -4.5 | -5.2 | 0.4 | -0.4 | 3.1 | 2.0 | -------------------------------------------------------------------------------- | Services | 0.2 | -0.1 | -0.2 | -1.7 | 1.0 | 2.0 | 1.4 | 0.5 | -------------------------------------------------------------------------------- | Software | -0.2 | 0.5 | 0.5 | -0.4 | 0.1 | 1.4 | 1.2 | 1.0 | | Solutions | | | | | | | | | -------------------------------------------------------------------------------- | Other and | -2.7 | -2.9 | -1.9 | -1.6 | -1.8 | -2.0 | -2.0 | -1.8 | | elimination | | | | | | | | | | s | | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -11.0 | -7.4 | -6.2 | -9.0 | -0.3 | 1.1 | 3.8 | 1.6 | | excluding | | | | | | | | | | non-recurri | | | | | | | | | | ng items | | | | | | | | | -------------------------------------------------------------------------------- | Non-recurri | -17.3 | - | -4.3 | - | -12.3 | - | - | - | | ng items | | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -28.4 | -7.4 | -10.5 | -9.0 | -12.6 | 1.1 | 3.8 | 1.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book | 31.12 | 30.9 | 30.6. | 31.3. | 31.12 | 30.9. | 30.6. | 31.3. | | | . | . | 2009 | 2009 | . | 2008 | 2008 | 2008 | | | 2009 | 2009 | | | 2008 | | | | -------------------------------------------------------------------------------- | Machines | 39.8 | 35.8 | 30.8 | 38.2 | 47.3 | 64.8 | 78.0 | 79.8 | -------------------------------------------------------------------------------- | Services | 1.6 | 1.6 | 2.3 | 4.0 | 11.6 | 15.0 | 16.2 | 7.5 | -------------------------------------------------------------------------------- | Software | 4.1 | 3.5 | 4.0 | 3.7 | 3.5 | 4.5 | 6.0 | 9.5 | | Solutions | | | | | | | | | -------------------------------------------------------------------------------- | Total | 45.5 | 40.9 | 37.1 | 45.9 | 62.5 | 84.4 | 100.3 | 96.9 | | Glaston | | | | | | | | | | Group | | | | | | | | | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Mortgages and pledges | | | -------------------------------------------------------------------------------- | On own behalf | 130.8 | 0.2 | -------------------------------------------------------------------------------- | Guarantees | | | -------------------------------------------------------------------------------- | On own behalf | 0.6 | 0.8 | -------------------------------------------------------------------------------- | On behalf of others | 0.1 | 0.1 | -------------------------------------------------------------------------------- | Lease obligations | 13.4 | 19.0 | -------------------------------------------------------------------------------- | Repurchase obligations | 0.2 | 0.8 | -------------------------------------------------------------------------------- | Capital commitments in relation to interests | 0.7 | - | | in joint ventures | | | -------------------------------------------------------------------------------- A customer of the US subsidiary Glaston USA, Inc. had made a claim of approximately USD 22 million due to a sale of a machine in 2004. The arbitration proceeding initiated by the customer against the US subsidiary Glaston USA, Inc. was concluded in April. Majority of the customer's claim were denied. The matter has no material effect on Glaston's 2009 result, because it was included in 2008 result as a non-recurring item. but the compensation paid by Glaston has affected Glaston's cash flow. The Group recognized a tax refund of approximately EUR 2 million in 2006 after having received an affirmative decision according to which the expenses arising from the management incentive scheme of the Group are deductible in taxation. The tax authorities of the Tax Office for Major Corporations appealed against the decision to the Administrative Court of Helsinki. Administrative Court of Helsinki decided the case on Glaston's favour in January 2009. The decision is final, since no appeal was made. 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 | 31.12.200 | | 31.12.2008 | | | | 9 | | | | -------------------------------------------------------------------------------- | | Nominal | Fair | Nominal | Fair value | | | value | value | value | | -------------------------------------------------------------------------------- | Currency derivatives | | | | | -------------------------------------------------------------------------------- | Currency forwards | 2.6 | -0.1 | 6.2 | -0.1 | -------------------------------------------------------------------------------- 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 equipment | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | Carrying amount at beginning of the period | 35.0 | 32.5 | -------------------------------------------------------------------------------- | Additions | 1.2 | 11.4 | -------------------------------------------------------------------------------- | Disposals | -6.2 | -0.2 | -------------------------------------------------------------------------------- | Depreciation and amortization | -4.1 | -4.8 | -------------------------------------------------------------------------------- | Impairment losses and reversals of | -1.2 | -0.8 | | impairment losses | | | -------------------------------------------------------------------------------- | Reclassification and other changes | -0.1 | -3.3 | -------------------------------------------------------------------------------- | Exchange differences | 0.0 | 0.3 | -------------------------------------------------------------------------------- | Carrying amount at end of the period | 24.7 | 35.0 | -------------------------------------------------------------------------------- At the end of the review period, Glaston Group did not have contractual commitments to acquire property, plant and equipment. SHAREHOLDER INFORMATION -------------------------------------------------------------------------------- | | Largest shareholders 31 December, 2009 | | -------------------------------------------------------------------------------- | | | Number of | % of | | | | shares | shares | -------------------------------------------------------------------------------- | | Shareholder | | and | | | | | votes | -------------------------------------------------------------------------------- | 1 | GWS Trade Oy | 13,446,700 | 16.95 | -------------------------------------------------------------------------------- | 2 | Oy G.W.Sohlberg Ab | 12,819,400 | 16.16 | -------------------------------------------------------------------------------- | 3 | Sumelius Birgit | 3,642,600 | 4.59 | -------------------------------------------------------------------------------- | 4 | Society of Swedish Literature in Finland | 2,245,000 | 2.83 | -------------------------------------------------------------------------------- | 5 | Investsum Oy | 1,820,000 | 2.29 | -------------------------------------------------------------------------------- | 6 | Suutarinen Helena Kuolinpesä | 1,802,400 | 2.27 | -------------------------------------------------------------------------------- | 7 | Von Christierson Charlie | 1,600,000 | 2.02 | -------------------------------------------------------------------------------- | 8 | Investment fund Aktia Capital | 1,484,650 | 1.87 | -------------------------------------------------------------------------------- | 9 | Sumelius Bjarne Henning | 1,374,840 | 1.73 | -------------------------------------------------------------------------------- | 10 | Sumelius-Koljonen Barbro | 1,206,875 | 1.52 | -------------------------------------------------------------------------------- | | Total 10 largest shareholders | 41,442,465 | 52.23 | -------------------------------------------------------------------------------- | | Other shareholders | 37,832,335 | 47.77 | -------------------------------------------------------------------------------- | | Not in the book-entry securities system | 75,200 | 0.00 | | | (in joint account) | | | -------------------------------------------------------------------------------- | | Total | 79,350,000 | 100.00 | -------------------------------------------------------------------------------- | | Treasury shares | -838,582 | 1.06 | -------------------------------------------------------------------------------- | | Total excluding treasury shares | 78,511,418 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Ownership distribution 31 December, 2009 | -------------------------------------------------------------------------------- | | Shares total | % of shares | | | | and votes | -------------------------------------------------------------------------------- | Corporations | 33,058,556 | 41.7% | -------------------------------------------------------------------------------- | Financial and insurance corporations | 2,525,347 | 3.2% | -------------------------------------------------------------------------------- | Non-profit institutions | 3,711,275 | 4.7% | -------------------------------------------------------------------------------- | Households | 34,584,294 | 43.6% | -------------------------------------------------------------------------------- | Foreign countries | 4,432,961 | 5.6% | -------------------------------------------------------------------------------- | General government | 242,161 | 0.3% | -------------------------------------------------------------------------------- | Total | 78,554,594 | 99.0% | -------------------------------------------------------------------------------- | Nominee registered | 720,206 | 0.9% | -------------------------------------------------------------------------------- | Total | 79,274,800 | 99.9% | -------------------------------------------------------------------------------- | Not in the book-entry securities system (in | 75,200 | 0.1% | | joint account) | | | -------------------------------------------------------------------------------- | Total | 79,350,000 | 100.0% | -------------------------------------------------------------------------------- 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 - December EUR 0.6 (0.6) million. During the review period there were no related party transactions whose terms would differ from the terms in transactions with third parties. Management remuneration -------------------------------------------------------------------------------- | Remuneration of the Board of Directors | | 2008 | | | 2009 | | | | -------------------------------------------------------------------------------- | EUR | annual | meeting | annual fee | meeting | | | fee | fee | | fee | -------------------------------------------------------------------------------- | Andreas Tallberg, Chairman | 40,000 | 8,000 | 40,000 | 7,200 | | of the Board of Directors | | | | | -------------------------------------------------------------------------------- | Christer Sumelius, Deputy | 30,000 | 5,000 | 30,000 | 4,500 | | Chairman of the Board of | | | | | | Directors | | | | | -------------------------------------------------------------------------------- | Claus von Bonsdorff | 20,000 | 5,000 | 20,000 | 4,500 | -------------------------------------------------------------------------------- | Klaus Cawén | 20,000 | 5,000 | 20,000 | 4,500 | -------------------------------------------------------------------------------- | Carl-Johan Rosenbröijer | 20,000 | 5,000 | 20,000 | 4,500 | -------------------------------------------------------------------------------- | Mikael Mäkinen (* | 5,000 | 1,000 | 15,000 | 3,000 | -------------------------------------------------------------------------------- | Jan Lång (** | 20,000 | 4,500 | 15,000 | 3,000 | -------------------------------------------------------------------------------- | Jan Hasselblatt (*** | - | - | 5,000 | 1,500 | -------------------------------------------------------------------------------- | Total | 155,000 | 33,500 | 165,000 | 32,700 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | (* Member of the Board of Directors from 11 March, 2008 until 17 March, | | 2009 | -------------------------------------------------------------------------------- | (** Member of the Board of Directors from 11 March, 2008 | -------------------------------------------------------------------------------- | (*** Member of the Board of Directors until 11 March, 2008 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 2009 | 2008 | | -------------------------------------------------------------------------------- | | EUR | | | | -------------------------------------------------------------------------------- | | CEO Arto Metsänen (* | | | | -------------------------------------------------------------------------------- | | Salaries | 105,580 | - | | -------------------------------------------------------------------------------- | | Bonuses | - | - | | -------------------------------------------------------------------------------- | | Total | 105,580 | - | | -------------------------------------------------------------------------------- | | Fringe benefits | 6,420 | - | | -------------------------------------------------------------------------------- | | Total | 112,000 | - | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Compulsory pension payments | 6,048 | - | | | | (Finnish TyEL or similar plan) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | (* from 1 September, 2009 | | | | -------------------------------------------------------------------------------- EUR -------------------------------------------------------------------------------- | CEO Mika Seitovirta (* | | | -------------------------------------------------------------------------------- | Salaries | 272,024 | 442,014 | -------------------------------------------------------------------------------- | Compensation for termination of employment | 525,000 | - | -------------------------------------------------------------------------------- | Share-based incentive plans, settled in cash | - | 74,204 | -------------------------------------------------------------------------------- | Share-based incentive plans, settled in shares, | - | 61,391 | | value of shares | | | -------------------------------------------------------------------------------- | Bonuses | 33,171 | 87,930 | -------------------------------------------------------------------------------- | Total | 830,195 | 665,539 | -------------------------------------------------------------------------------- | Fringe benefits | 3,846 | 2,420 | -------------------------------------------------------------------------------- | Total | 834,041 | 667,959 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Compulsory pension payments (Finnish TyEL or | 13,289 | 16,439 | | similar plan) | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (* until 5 August, 2009 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other members of the Executive Management Group | | -------------------------------------------------------------------------------- | Salaries | 1,155,624 | 1,176,370 | -------------------------------------------------------------------------------- | Compensations for termination of | 425,036 | - | | employment | | | -------------------------------------------------------------------------------- | Share-based incentive plans, settled in | - | 137,395 | | cash | | | -------------------------------------------------------------------------------- | Share-based incentive plans, settled in | - | 102,319 | | shares, value of shares | | | -------------------------------------------------------------------------------- | Bonuses | 124,322 | 298,237 | -------------------------------------------------------------------------------- | Total | 1,704,982 | 1,714,321 | -------------------------------------------------------------------------------- | Fringe benefits | 74,573 | 70,804 | -------------------------------------------------------------------------------- | Total | 1,779,555 | 1,785,125 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Compulsory pension payments (Finnish | 132,802 | 137,193 | | TyEL or similar plan) | | | -------------------------------------------------------------------------------- Share-based incentive plan The expenses, personnel costs included, were in 2009 EUR 0.3 (0.3) million. In 2009, no shares were surrendered based on the share-based incentive plan. Transactions with joint ventures and associates Glaston has leased property to the joint venture in 2009. In January - December 2009 or 2008 Glaston had no other material transactions with the joint venture. Glaston did not have transactions with the associate. EUR million -------------------------------------------------------------------------------- | Transactions with joint ventures | | | -------------------------------------------------------------------------------- | | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales to joint venture | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Rental income from joint venture | 0.3 | - | -------------------------------------------------------------------------------- | Interest income from joint venture | 0.3 | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | Receivables from and liabilities to joint | | | | ventures | | | -------------------------------------------------------------------------------- | Current receivables | 1.2 | 0.0 | -------------------------------------------------------------------------------- | Non-current loan receivables | 5.9 | - | -------------------------------------------------------------------------------- | Trade payables | 0.1 | - | -------------------------------------------------------------------------------- |
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