2010-10-27 12:00:00 CEST
2010-10-27 12:00:04 CEST
REGULATED INFORMATION
Glaston Oyj Abp - Interim report (Q1 and Q3)
Glaston Corporation Interim Report 1 January-30 September 2010
Glaston Corporation Interim Report 27.10.2010 at 13.00 Glaston Corporation Interim Report 1 January-30 September 2010 - Orders received in January-September totalled EUR 108.6 (107.4) million. Orders received in the third quarter totalled EUR 39.0 (35.2) million, 11% up on the corresponding period last year. - Glaston's order book on 30 September 2010 was EUR 40.7 (40.9) million. - Consolidated net sales in January-September were EUR 111.8 (115.9) million. - The operating result in January-September was a loss of EUR 7.3 (26.9 loss) million, i.e. -6.6 (-23.2)% of net sales. The third quarter operating result was a loss of EUR 2.8 (7.4 loss) million. - Return on capital employed (ROCE) was -8.3 (-18.8)%. - Earnings per share in January-September were EUR -0.17 (-0.34) and third-quarter earnings per share were EUR -0.07 (-0.11). - Glaston expects that 2010 net sales will be at the 2009 level and that the operating result will improve significantly. President & CEO Arto Metsänen: No significant changes took place in Glaston's operating environment in the third quarter. The Asian and South American markets continued to develop well. In Europe demand remained weak, but signs of a cautious recovery of the market were perceptible. The market situation in North America continued to be weak. The improvement of our operating result is an indication of the effectiveness of our adjustment and cost-saving measures, because in this we have received no support from the market. The operating result remains unsatisfactory, however, and we will purposefully continue measures to improve profitability. The company is also considering additional adjustment measures, which if implemented may lead to personnel reductions and give rise to non-recurring costs in the final quarter. Possible measures will be communicated in due course. The glass industry's most important fair (Glasstec), which took place at the end of September, exceeded our expectations in terms of its activity. The fair gave a good picture of the development of the market and future trends. At the fair, we launched seven new products, including the Glaston Tamglass RC200 and FC500 flat tempering machines, both equipped with the latest technology. Markets In Asia and South America, the positive development of the glass processing machine market continued during the third quarter. In Europe and North America, demand remained weak, but signs of a pick-up in the market were perceptible in the third quarter. Of Glaston's customer segments, the automotive industry and solar energy manufacturers were more active during the third quarter. In the solar energy segment, customers showed interest in glass processing with PV (photovoltaic) technology. Machines Positive development in the Asian and South American markets continued in the third quarter. In the EMEA area, demand continued on a low level, apart from a few country-specific exceptions. Customers' unsatisfactory profitability during the early part of the year and the continued unfavourable situation in the financial markets prolonged investment decisions, which particularly affected Heat Treatment machine orders. At the end of the review period, however, an increase in activity was evident and some customers initiated investment projects which were previously on hold. In South America, the APAC area and the Middle East, increasing utilisation rates of glass processing machines combined with higher yield requirements sought from machines increased demand for tools. In the last week of the third quarter, the Machines segment launched a number of new products at the Glasstec Fair. Two new flat tempering machines were launched at the fair: the Glaston Tamglass FC500, equipped with a patented energy-saving heating system, for high quality Low-E glass tempering, and the Glaston Tamglass RC200, which combines excellent quality with a competitive price. The machines are equipped with the new online iControL control and automation system, which represents the latest technology, combining ease of use as well as production efficiency and reliability. In addition, Glaston presented a revamped range of flat tempering machines, with a new product identity and names. Pre-processing machine customers were introduced to Glaston Stock, a concept that combines machines, tools and extended warranty offering customers added value as security to keep their operation costs at a planned level. At the end of September, Glaston entered into a strategic cooperation with the Finnish company Beneq Oy. The unique product concept Beneq-Glaston TFC2000 system for the production of TCO (transparent conductive oxide) coated solar panel (PV) glass, jointly developed by the companies, was launched at the Glasstec Fair. In January-September, the Machines segment's net sales totalled EUR 71.4 (70.6) million. Services The recovery of the Services segment market continued in the third quarter. In Asia and North America, demand for upgrade products picked up in the review period. The market recovery was also evident in the segment's number of new orders, which grew slightly compared with earlier quarters of the year. In the review period, the Services segment launched a number of new products, all connected with improving the quality of the end product and expanding the features and raising the capacity of machines. The iLooK online quality measurement system, presented at the Glasstec Fair, received a very positive reception. Other new products were the Vortex Pro convection system, which enables a higher production capacity and the manufacture of better quality glass, a blower monitoring system and automatic malfunction reporting by e-mail and text message. In January-September, the Services segment's net sales were EUR 23.3 million (in 2009 EUR 29.5 million, including Tamglass Glass Processing's share of EUR 5.3 million). Software Solutions The operational priority of the Software Solutions segment in the third quarter was the Glasstec Fair. Glass production automation, chosen as the main topic for the fair, was of great interest to fair visitors, as were the automation products AWFactory, Panorama and DynOpt. Third-quarter new orders, boosted by Glasstec, were 39% higher than in the corresponding period the previous year. Orders received in the third quarter totalled EUR 6.1 (4.4) million. Particularly towards the end of the review period, there were signs that customers' willingness to invest was returning. In January-September, the Software Solutions segment's net sales totalled EUR 18.1 (17.7) million. Orders received Glaston's orders received in the review period totalled EUR 108.6 (107.4) million. Of orders received, the Machines segment accounted for 64%, the Services segment 20% and the Software Solutions segment 16%. Orders received in the third quarter totalled EUR 39.0 (35.2) million, 11% up on the corresponding period last year. Order book Glaston's order book on 30 September 2010 was EUR 40.7 (40.9) million. Of the order book, the Machines segment accounted for EUR 34.7 million, the Services segment for EUR 1.9 million and the Software Solutions segment for EUR 4.0 million. -------------------------------------------------------------------------------- | Order book, EUR million | 30.9.2010 | 30.9.2009 | -------------------------------------------------------------------------------- | Machines | 34.7 | 35.8 | -------------------------------------------------------------------------------- | Services | 1.9 | 1.6 | -------------------------------------------------------------------------------- | Software Solutions | 4.0 | 3.5 | -------------------------------------------------------------------------------- | Total | 40.7 | 40.9 | -------------------------------------------------------------------------------- Net sales and operating result Net sales for the review period totalled EUR 111.8 (115.9) million. The Machines segment's net sales in January-September were EUR 71.4 (70.6) million, the Services segment's net sales EUR 23.3 million (in 2009 EUR 29.5 million, of which Tamglass Glass Processing's share EUR 5.3 million) and the Software Solutions segment's net sales EUR 18.1 (17.7) million. Third-quarter net sales were EUR 31.9 (31.5) million and distributed across the business segments as follows: Machines EUR 18.5 (17.3) million, Services EUR 7.8 (9.1) million and Software Solutions EUR 6.1 (5.8) million. -------------------------------------------------------------------------------- | Net sales, EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Machines | 71.4 | 70.6 | 92.5 | -------------------------------------------------------------------------------- | Services | 23.3 | 29.5 | 37.7 | -------------------------------------------------------------------------------- | Software Solutions | 18.1 | 17.7 | 23.9 | -------------------------------------------------------------------------------- | Other and internal sales | -1.0 | -1.9 | -2.4 | -------------------------------------------------------------------------------- | Total | 111.8 | 115.9 | 151.8 | -------------------------------------------------------------------------------- The operating result in January-September was a loss of EUR 7.3 (26.9 loss) million, i.e. -6.6 (-23.2)% of net sales. The operating result for the comparison year includes non-recurring items totalling EUR 4.3 million. Realised cost-savings had a positive impact on the result. The 2010 operating result is adversely affected by the EUR 1.2 million operating loss of Tamglass Glass Processing and the 2009 operating result by a corresponding EUR 3.3 million operating loss. Of the January-September operating loss, excluding non-recurring items, the Machines segment accounted for EUR -5.8 (-14.7) million, the Services segment for EUR 2.1 (-2.0) million and the Software Solutions segment for EUR 1.4 (0.6) million. The Services segment figures include Tamglass Glass Processing. The third-quarter operating loss was EUR 2.8 (7.4) million, of which the Machines segment accounted for EUR -2.6 (-4.9) million, the Services segment for EUR 0.6 (-0.1) million and the Software Solutions segment for EUR 0.2 (0.5) million. -------------------------------------------------------------------------------- | Operating result, EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Machines | -5.8 | -14.7 | -22.4 | -------------------------------------------------------------------------------- | Services | 2.1 | -2.0 | -2.4 | -------------------------------------------------------------------------------- | Software Solutions | 1.4 | 0.6 | 0.4 | -------------------------------------------------------------------------------- | Other and eliminations | -5.1 | -6.5 | -9.3 | -------------------------------------------------------------------------------- | Operating result, excluding | -7.3 | -22.6 | -33.6 | | non-recurring items | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | -4.3 | -21.6 | -------------------------------------------------------------------------------- | Operating result | -7.3 | -26.9 | -55.3 | -------------------------------------------------------------------------------- The loss for the review period was EUR 13.2 (26.8 loss) million, and the loss for the third quarter was EUR 5.4 (8.7 loss) million. Return on capital employed was -8.3 (-18.8)% and earnings per share were EUR -0.17 (-0.34). Earnings per share in July-September were EUR -0.07 (-0.11). Balance sheet, cash flow and financing At the end of the review period, the balance sheet total was EUR 215.1 (251.5) million. The equity attributable to owners of the parent was EUR 57.5 (95.8) million, i.e. EUR 0.73 (1.22) per share. The equity ratio on 30 September 2010 was 28.9 (40.4)%. Return on equity in January-September was -27.7 (-32.5)%. Cash flow from operating activities, excluding the change in working capital, was EUR -11.2 (-25.1) million in the review period. The most significant reasons for the negative cash flow from operating activities were the settling of provisions recognised in 2009 and financial items, such as the payment of convertible bond interest. The change in working capital was EUR -6.3 (20.5) million. Cash flow from investments was EUR -2.2 (-6.7) million. Cash flow from financing activities in January-September was EUR 15.0 (18.9) million. A EUR 6.3 million convertible bond was issued in February. The terms of the convertible bond are similar to those of the convertible bond issued in June 2009. The Group's liquid funds at the end of the review period totalled EUR 12.2 (19.2) million. Interest-bearing net debt totalled EUR 80.2 (67.6) million and net gearing was 138.7 (70.3)%. At the end of the third quarter, the company's loan covenants, EBITDA and net gearing would not have met the limits originally agreed in Glaston's revolving credit facility agreement. Glaston has, however, agreed with its financial institutions that the covenant terms of the revolving credit facility agreement will not be applied, and negotiations with the financial institutions on the renewal of existing financing agreements are ongoing. The company aims to reach a long-term financing solution with financial institutions by the end of January 2011. Efficiency programme The efficiency improvement measures initiated in 2008 and the extensive adjustment programme to reorganise operations initiated in 2009 were completed for the most part during the first half of 2010. The most significant adjustment measures were directed at Europe, where the number of personnel has been reduced by 186 during the year (Finland -43, and the rest of Europe -143). Measures such as temporary lay-offs continued in Finland and Italy during the third quarter to adjust production capacity to correspond with demand. The project to simplify the sales and service organisation and to expand the reseller network was continued. Measures were most strongly directed at the EMEA area. Capital expenditure, depreciation and amortisation Glaston's gross capital expenditure totalled EUR 3.2 (7.4) million. In the review period, there were no significant individual investments. Investments were mainly capitalized development expenditure. During the review period, depreciation, amortisation and impairment losses on intangible assets and property, plant and equipment totalled EUR 5.9 (7.5) million, of which impairment losses were EUR 0.3 (1.2) million. Organisation and personnel On 30 September 2010, Glaston Corporation had a total of 997 (1,244) employees. Of the Group's employees, 18% worked in Finland and 47% elsewhere in the EMEA area, 21% in Asia and 14% in the Americas. The average number of employees was 1,046 (1,392). Share-based incentive scheme On 9 June 2010, the Board of Directors decided on a new share-based incentive scheme for management. The scheme has one performance period covering 2010 and 2011, with the performance criterion being the development of the Group's operating profit. Any bonus will be paid after the result for 2011 is published in spring 2012. Through the scheme, a maximum of approximately 2.5 million Glaston shares can be distributed. Any income taxes and other statutory payments arising from the payment of the bonus will be deducted from the gross number of shares before their distribution. During the performance period, the target group for the share-based incentive scheme will consist of a maximum of 12 people. Shares and share prices Glaston Corporation's paid and registered share capital on 30 September 2010 was EUR 12.7 million and the number of issued shares totalled 79,350,000. The company has one series of share. At the end of the review period, the company held 788,582 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 126,173. Every share that the company does not hold itself entitles its owner to one vote at the Annual General Meeting. The share has no nominal value. The counter book value of each share is EUR 0.16. On 30 September 2010, the market capitalisation of the company's shares, treasury shares excluded, was EUR 100.6 (97.4) million. During the first nine months of the year, a total of around 9.2 million of the company's shares were traded, representing 11.7% of the average number of shares. The lowest price paid for a share was EUR 1.05 and the highest price EUR 1.65. The volume-weighted average price of shares traded during January-September was EUR 1.28. The closing price on 30 September 2010 was EUR 1.28. Decisions of the Annual General Meeting The Annual General Meeting of Glaston Corporation was held in Helsinki on 13 April 2010. The Annual General Meeting approved the financial statements and consolidated financial statements for 2009 and released the Board of Directors and the President & CEO from liability for the financial year 1 January-31 December 2009. The Annual General Meeting approved the proposal of the Board of Directors that no dividend be distributed for the financial year 2009. The Annual General Meeting confirmed the re-election of the following members of the Board of Directors for a year-long term of office: Claus von Bonsdorff, Klaus Cawén, Jan Lång, Carl-Johan Rosenbröijer, Christer Sumelius and Andreas Tallberg. In addition, Teuvo Salminen was elected as a new member of the Board. The Annual General Meeting decided to maintain the Chairman of the Board's annual remuneration at EUR 40,000 and the Deputy Chairman's annual remuneration at EUR 30,000. It was also decided to maintain the annual remuneration of the other Members of the Board at EUR 20,000. The Annual General Meeting elected as auditor Public Accountants Ernst & Young, with the responsible auditor being Harri Pärssinen, APA. The Annual General Meeting approved an amendment to Article 11 of the Articles of Association that the notice to attend a General Meeting be published no later than three weeks prior to the General Meeting, however at the latest nine days before the record date of the General Meeting. At its organising meeting on 13 April 2010, Glaston's 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. Authorisations given by the Annual General Meeting The Annual General Meeting also authorised the Board of Directors to decide on the issue of new shares and/or the conveyance of the own shares held by the company. By virtue of the authorisation, the Board of Directors is entitled to decide on the issuance of a maximum of 6,800,000 new shares and on the conveyance of a maximum of 6,800,000 own shares held by the company. However, the total number of shares to be issued and/or conveyed may not exceed 6,800,000 shares. The new shares may be issued and own shares held by the company may be conveyed either against payment or without payment. The new shares may be issued and/or own shares held by the company conveyed to the company's shareholders in proportion to their existing shareholdings in the company, or by means of a directed share issue, waiving the pre-emptive subscription right of the shareholders, if there is a weighty reason for the company to do so, such as the shares are to be used to improve the capital structure of the company or as consideration in future acquisitions or other arrangements that are part of the company's business or as part of company's or its subsidiaries' incentive schemes. Shares can be issued or conveyed without payment in exception to the pre-emptive subscription right of shareholders only if there is an especially weighty financial reason for the company to do so, taking the interests of all shareholders into account. The Board of Directors may decide on a share issue without payment also to the company itself. A decision regarding a share issue to the company itself cannot be made such that the total number of shares held jointly by the company or its subsidiaries would exceed one tenth of all shares of the company. The subscription price of new shares issued and the consideration paid for the conveyance of the company's own shares shall be credited to the reserve for invested unrestricted equity. By virtue of the share issue authorisation, the Board of Directors shall decide on other matters relating to the issuing and conveyance of shares. The share issue authorisation is valid until the end of the 2012 Annual General Meeting. The Board of Directors has no other authorisations. Uncertainties and risks in the near future Despite the cautious recovery of the world economy, Glaston's development in the near future is still uncertain. Of Glaston's markets, the EMEA area and North America remain quiet. The contracted market has also led to an oversupply of customers' production capacity. Despite the gradual pick-up in the economy, difficulties related to customers' financing arrangements limit investment opportunities. This affects major machinery investments in particular, and orders may be postponed. Customers' financial situations also impact the collection of receivables and credit losses. As IAS 36 Impairment of Assets standard has changed it affects the allocation of goodwill in Glaston. Previously goodwill was 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, however, be larger than an operating segment before it is aggregated to be a part of a reportable segment. For this reason the goodwill allocated to the Machines reportable segment is being re-allocated to the operating segments within the reportable segment. In preparing its January - September interim report Glaston has detected indications of a possible impairment of goodwill in the operating segments within the Machines reportable segment. For this reason Glaston has started impairment testing of the goodwill related to the Machines segment. The results of the tests will be reported when the testing is finalized. Glaston prepares the annual impairment testing of goodwill relating to the other reportable segments according to the normal timetable during the fourth quarter. Outlook A modest recovery in Glaston's market is expected during 2010. The positive development is expected to continue in Asia, particularly in the Chinese market. Demand is also expected to remain good in South America. Despite the slight pick-up in the European market, the glass processing machine market, apart from for a few country-specific exceptions, remains subdued and recovery in Europe has been slower than expected. In 2010 the priority for developing operations is improving profitability. The cornerstones of Glaston's operations remain the architectural glass segment and the solar energy market. We will continue purposefully to strengthen our position in China and elsewhere in Asia. Published efficiency measures are proceeding as planned. The company is also considering additional adjustment measures, which if implemented may lead to personnel reductions and give rise to non-recurring costs in the final quarter. We expect that 2010 net sales will be at the 2009 level and that the operating result will improve significantly. Helsinki, 27 October 2010 Glaston Corporation Board of Directors For further information, please contact: Arto Metsänen, President&CEO Phone: +358 10 500 500 Sender: Glaston Corporation Agneta Selroos Corporate Communications and IR Manager Phone: +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 most extensive 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 software. Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki, Mid Cap List. Distribution: OMX, key media, www.glaston.net GLASTON CORPORATION CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 30 SEPTEMBER 2010 These interim financial statements are not audited. As a result of rounding differences, the figures presented in the tables may not add up to the total. CONSOLIDATED STATEMENT OF FINANCIAL POSITION -------------------------------------------------------------------------------- | EUR million | 30.9.2010 | 30.9.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Assets | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Goodwill | 58.4 | 66.2 | 58.4 | -------------------------------------------------------------------------------- | Other intangible assets | 18.8 | 23.7 | 19.7 | -------------------------------------------------------------------------------- | Property, plant and equipment | 22.1 | 27.1 | 24.7 | -------------------------------------------------------------------------------- | Investments in joint ventures and | 0.0 | 0.8 | 0.4 | | associates | | | | -------------------------------------------------------------------------------- | Available-for-sale assets | 0.3 | 0.3 | 0.3 | -------------------------------------------------------------------------------- | Loan receivables | 4.2 | 5.8 | 5.9 | -------------------------------------------------------------------------------- | Deferred tax assets | 9.3 | 9.9 | 8.5 | -------------------------------------------------------------------------------- | Total non-current assets | 113.2 | 134.0 | 117.9 | -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 36.5 | 38.0 | 37.4 | -------------------------------------------------------------------------------- | Receivables | | | | -------------------------------------------------------------------------------- | Trade and other receivables | 49.8 | 56.3 | 52.2 | -------------------------------------------------------------------------------- | Assets for current tax | 3.4 | 4.1 | 3.6 | -------------------------------------------------------------------------------- | Total receivables | 53.2 | 60.3 | 55.8 | -------------------------------------------------------------------------------- | Cash equivalents | 12.2 | 19.2 | 15.6 | -------------------------------------------------------------------------------- | Total current assets | 101.9 | 117.5 | 108.8 | -------------------------------------------------------------------------------- | Total assets | 215.1 | 251.5 | 226.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 30.9.2010 | 30.9.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Equity and liabilities | | | | -------------------------------------------------------------------------------- | Equity | | | | -------------------------------------------------------------------------------- | Share capital | 12.7 | 12.7 | 12.7 | -------------------------------------------------------------------------------- | Share premium account | 25.3 | 25.3 | 25.3 | -------------------------------------------------------------------------------- | Other reserves | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Reserve for invested unrestricted | 0.1 | 0.2 | 0.2 | | equity | | | | -------------------------------------------------------------------------------- | Treasury shares | -3.3 | -3.5 | -3.5 | -------------------------------------------------------------------------------- | Fair value reserve | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Retained earnings and exchange | 35.9 | 87.9 | 87.9 | | differences | | | | -------------------------------------------------------------------------------- | Net result attributable to owners of | -13.2 | -26.8 | -53.6 | | the parent | | | | -------------------------------------------------------------------------------- | Equity attributable to owners of the | 57.5 | 95.8 | 69.0 | | parent | | | | -------------------------------------------------------------------------------- | Non-controlling interest | 0.3 | 0.4 | 0.3 | -------------------------------------------------------------------------------- | Total equity | 57.8 | 96.2 | 69.4 | -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Convertible bond | 26.0 | 19.8 | 20.1 | -------------------------------------------------------------------------------- | Non-current interest-bearing | 4.2 | 17.1 | 4.7 | | liabilities | | | | -------------------------------------------------------------------------------- | Non-current interest-free liabilities | 5.0 | 6.5 | 7.3 | | and provisions | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 5.0 | 8.5 | 6.6 | -------------------------------------------------------------------------------- | Total non-current liabilities | 40.2 | 51.9 | 38.8 | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Current interest-bearing liabilities | 62.3 | 49.9 | 54.4 | -------------------------------------------------------------------------------- | Current provisions | 4.9 | 4.0 | 9.8 | -------------------------------------------------------------------------------- | Trade and other payables | 48.3 | 48.1 | 53.2 | -------------------------------------------------------------------------------- | Liabilities for current tax | 1.6 | 1.5 | 1.0 | -------------------------------------------------------------------------------- | Total current liabilities | 117.0 | 103.4 | 118.5 | -------------------------------------------------------------------------------- | Total liabilities | 157.2 | 155.3 | 157.3 | -------------------------------------------------------------------------------- | Total equity and liabilities | 215.1 | 251.5 | 226.7 | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED INCOME STATEMENT -------------------------------------------------------------------------------- | EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 31.9 | 31.5 | 111.8 | 115.9 | 151.8 | -------------------------------------------------------------------------------- | Other operating income | 0.2 | 0.4 | 0.5 | 0.9 | 1.1 | -------------------------------------------------------------------------------- | Expenses | -33.0 | -36.4 | -113.2 | -135.2 | -185.8 | -------------------------------------------------------------------------------- | Share of associates and | 0.0 | -0.7 | -0.4 | -1.1 | -1.5 | | joint ventures' result | | | | | | -------------------------------------------------------------------------------- | Depreciation, amortization | -2.0 | -2.3 | -5.9 | -7.5 | -20.9 | | and impairment | | | | | | -------------------------------------------------------------------------------- | Operating profit / loss | -2.8 | -7.4 | -7.3 | -26.9 | -55.3 | -------------------------------------------------------------------------------- | Financial items, net | -2.9 | -0.9 | -5.9 | -1.7 | -2.3 | -------------------------------------------------------------------------------- | Result before income taxes | -5.7 | -8.4 | -13.3 | -28.6 | -57.6 | -------------------------------------------------------------------------------- | Income taxes | 0.3 | -0.3 | 0.0 | 1.8 | 4.0 | -------------------------------------------------------------------------------- | Profit / loss for the | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 | | period | | | | | | -------------------------------------------------------------------------------- | Attributable to: | | | | | | -------------------------------------------------------------------------------- | Owners of the parent | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 | -------------------------------------------------------------------------------- | Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Total | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, EUR, | -0.07 | -0.11 | -0.17 | -0.34 | -0.68 | | basic | | | | | | -------------------------------------------------------------------------------- | Earnings per share, EUR, | -0.07 | -0.11 | -0.17 | -0.34 | -0.68 | | diluted | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit / loss, | -8.9 | -23.6 | -6.6 | -23.2 | -36.4 | | as % of net sales | | | | | | -------------------------------------------------------------------------------- | Profit / loss for the | -17.0 | -27.6 | -11.8 | -23.1 | -35.3 | | period, as % of net sales | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-recurring items | - | - | - | -4.3 | -21.6 | | included in operating | | | | | | | profit / loss | | | | | | -------------------------------------------------------------------------------- | Operating profit / loss, | -2.8 | -7.4 | -7.3 | -22.6 | -33.6 | | non-recurring items | | | | | | | excluded | | | | | | -------------------------------------------------------------------------------- | Operating profit / loss, | -17.0 | -23.6 | -11.8 | -19.5 | -22.2 | | non-recurring items | | | | | | | excluded, as % of net | | | | | | | sales | | | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME -------------------------------------------------------------------------------- | | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit / loss for the | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 | | period | | | | | | -------------------------------------------------------------------------------- | Other comprehensive income | | | | | | -------------------------------------------------------------------------------- | Total exchange differences | -1.1 | -0.6 | 0.7 | -0.7 | -0.7 | | on translating foreign | | | | | | | operations | | | | | | -------------------------------------------------------------------------------- | Fair value changes of | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | available-for-sale assets | | | | | | -------------------------------------------------------------------------------- | Income tax on other | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | comprehensive income | | | | | | -------------------------------------------------------------------------------- | Other comprehensive income | -1.0 | -0.6 | 0.7 | -0.7 | -0.7 | | for the reporting period, | | | | | | | net of tax | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive income | -6.5 | -9.3 | -12.5 | -27.5 | -54.4 | | for the reporting period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | | -------------------------------------------------------------------------------- | Owners of the parent | -6.4 | -9.3 | -12.5 | -27.5 | -54.3 | -------------------------------------------------------------------------------- | Non-controlling interest | -0.1 | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Total comprehensive income | -6.5 | -9.3 | -12.5 | -27.5 | -54.4 | | for the reporting period | | | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS -------------------------------------------------------------------------------- | EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Cash flows from operating activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow before change in net | -11.2 | -25.1 | -29.8 | | working capital | | | | -------------------------------------------------------------------------------- | Change in net working capital | -6.3 | 20.5 | 28.6 | -------------------------------------------------------------------------------- | Net cash flow from operating | -17.5 | -4.6 | -1.2 | | activities | | | | -------------------------------------------------------------------------------- | Cash flow from investing activities | | | | -------------------------------------------------------------------------------- | Business combinations | 0.0 | -0.5 | -0.5 | -------------------------------------------------------------------------------- | Other purchases of non-current assets | -3.0 | -5.4 | -6.5 | -------------------------------------------------------------------------------- | Investment in joint ventures | -0.2 | -2.0 | -2.0 | -------------------------------------------------------------------------------- | Proceeds from sale of joint ventures | 0.4 | - | - | -------------------------------------------------------------------------------- | Other | - | 0.1 | 0.1 | -------------------------------------------------------------------------------- | Proceeds from sale of other | 0.6 | 1.2 | 1.4 | | non-current assets | | | | -------------------------------------------------------------------------------- | Net cash flow from investing | -2.2 | -6.7 | -7.5 | | activities | | | | -------------------------------------------------------------------------------- | Cash flow before financing | -19.7 | -11.2 | -8.7 | -------------------------------------------------------------------------------- | Cash flow from financing activities | | | | -------------------------------------------------------------------------------- | Increase in non-current liabilities | 6.2 | 23.8 | 23.8 | -------------------------------------------------------------------------------- | Decrease in non-current liabilities | -0.6 | -3.1 | -11.9 | -------------------------------------------------------------------------------- | Changes in short-term liabilities | 8.1 | 0.9 | 3.2 | | (increase + / decrease -) | | | | -------------------------------------------------------------------------------- | Dividends paid | - | -3.9 | -3.9 | -------------------------------------------------------------------------------- | Other financing | 1.4 | 1.2 | 1.2 | -------------------------------------------------------------------------------- | Net cash flow from financing | 15.0 | 18.9 | 12.3 | | activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Effect of exchange rate changes | 1.3 | 0.0 | 0.4 | -------------------------------------------------------------------------------- | Net change in cash and cash | -3.4 | 7.6 | 4.0 | | equivalents | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at the | 15.6 | 11.5 | 11.5 | | beginning of period | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at the end | 12.2 | 19.2 | 15.6 | | of period | | | | -------------------------------------------------------------------------------- | Net change in cash and cash | -3.4 | 7.6 | 4.0 | | equivalents | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN EQUITY -------------------------------------------------------------------------------- | EUR million | Share | Share | Other | Reserve | Treasury | Fair | | | capita | premiu | reserves | for | shares | value | | | l | m | | invested | | reserve | | | | accoun | | unrestr. | | | | | | 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 | - | - | - | -------------------------------------------------------------------------------- | Other changes | - | - | - | 0.0 | 0.0 | - | | in treasury | | | | | | | | shares | | | | | | | -------------------------------------------------------------------------------- | Equity at 30 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 | | September, 2009 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | Share | Share | Other | Reserve | Treasury | Fair | | | capital | premium | reserves | for | shares | value | | | | account | | invested | | reserv | | | | | | unrestr. | | e | | | | | | equity | | | -------------------------------------------------------------------------------- | Equity at 1 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 | | January, 2010 | | | | | | | -------------------------------------------------------------------------------- | Total | - | - | - | - | - | 0.0 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Disposal of | - | - | - | -0.1 | 0.2 | - | | treasury | | | | | | | | shares | | | | | | | -------------------------------------------------------------------------------- | Other changes | - | - | - | - | - | - | -------------------------------------------------------------------------------- | Tax effect of | - | - | - | 0.0 | - | - | | net income | | | | | | | | recognized | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Equity at 30 | 12.7 | 25.3 | 0.0 | 0.1 | -3.3 | 0.0 | | September, | | | | | | | | 2010 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | Retained | Exchange | Equity | Non-control | Total | | | earnings | diff. | attrib. to | ling | equity | | | | | owners of | interest | | | | | | the parent | | | -------------------------------------------------------------------------------- | Equity at 1 | 89.6 | -0.5 | 123.7 | 0.1 | 123.8 | | January, 2009 | | | | | | -------------------------------------------------------------------------------- | Total | -26.8 | -0.7 | -27.5 | 0.0 | -27.5 | | comprehensive | | | | | | | income for the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Other changes in | 0.0 | - | 0.0 | 0.3 | 0.4 | | non-controlling | | | | | | | interest | | | | | | -------------------------------------------------------------------------------- | Other changes | - | - | 0.0 | - | 0.0 | -------------------------------------------------------------------------------- | Share-based | 0.0 | - | 0.0 | - | 0.0 | | incentive plan | | | | | | -------------------------------------------------------------------------------- | Share-based | 0.0 | - | 0.0 | - | 0.0 | | incentive plan, | | | | | | | tax effect | | | | | | -------------------------------------------------------------------------------- | Equity part of | 3.4 | - | 3.4 | - | 3.4 | | convertible bond | | | | | | -------------------------------------------------------------------------------- | Dividends paid | -3.9 | - | -3.9 | - | -3.9 | -------------------------------------------------------------------------------- | Equity at 30 | 62.4 | -1.2 | 95.8 | 0.4 | 96.2 | | September, 2009 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | Retained | Exchange | Equity | Non-control | Total | | | earnings | diff. | attrib. to | ling | equity | | | | | owners of | interest | | | | | | the parent | | | -------------------------------------------------------------------------------- | Equity at 1 | 35.6 | -1.3 | 69.0 | 0.3 | 69.4 | | January, 2010 | | | | | | -------------------------------------------------------------------------------- | Total | -13.2 | 0.7 | -12.5 | 0.0 | -12.5 | | comprehensive | | | | | | | income for the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Disposal of | - | - | 0.1 | - | 0.1 | | treasury shares | | | | | | -------------------------------------------------------------------------------- | Other changes | 0.0 | - | 0.0 | - | 0.0 | -------------------------------------------------------------------------------- | Tax effect of | - | - | 0.0 | - | 0.0 | | 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 | 0.8 | - | 0.8 | - | 0.8 | | convertible | | | | | | | bond | | | | | | -------------------------------------------------------------------------------- | Equity at 30 | 23.3 | -0.6 | 57.5 | 0.3 | 57.8 | | September, 2010 | | | | | | -------------------------------------------------------------------------------- KEY RATIOS -------------------------------------------------------------------------------- | | 30.9.2010 | 30.9.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | EBITDA, as % of net sales (1 | -1.2 | -16.7 | -22.7 | -------------------------------------------------------------------------------- | Operating profit / loss (EBIT), as % | -6.6 | -23.2 | -36.4 | | of net sales | | | | -------------------------------------------------------------------------------- | Net result, as % of net sales | -11.8 | -23.1 | -35.3 | -------------------------------------------------------------------------------- | Gross capital expenditure, EUR million | 3.2 | 7.4 | 8.5 | -------------------------------------------------------------------------------- | Gross capital expenditure, as % of net | 2.8 | 6.4 | 5.6 | | sales | | | | -------------------------------------------------------------------------------- | Equity ratio, % | 28.9 | 40.4 | 33.1 | -------------------------------------------------------------------------------- | Gearing, % | 159.8 | 90.3 | 114.3 | -------------------------------------------------------------------------------- | Net gearing, % | 138.7 | 70.3 | 91.9 | -------------------------------------------------------------------------------- | Net interest-bearing debt, EUR million | 80.2 | 67.6 | 63.7 | -------------------------------------------------------------------------------- | Capital employed, end of period, EUR | 150.2 | 183.0 | 148.6 | | million | | | | -------------------------------------------------------------------------------- | Return on equity, %, annualized | -27.7 | -32.5 | -55.5 | -------------------------------------------------------------------------------- | Return on capital employed, %, | -8.3 | -18.8 | -32.1 | | annualized | | | | -------------------------------------------------------------------------------- | Number of personnel, average | 1,046 | 1,392 | 1,344 | -------------------------------------------------------------------------------- | Number of personnel, end of period | 997 | 1,244 | 1,160 | -------------------------------------------------------------------------------- (1 EBITDA = Operating profit / loss + depreciation, amortization and impairment. -------------------------------------------------------------------------------- | PER SHARE DATA | | | | -------------------------------------------------------------------------------- | | 30.9.2010 | 30.9.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Number of shares, end of period, | 78,561 | 78,511 | 78,511 | | treasury shares excluded (1,000) | | | | -------------------------------------------------------------------------------- | Number of shares, average, treasury | 78,516 | 78,526 | 78,522 | | shares excluded (1,000) | | | | -------------------------------------------------------------------------------- | Number of shares, dilution effect of | 100 624 | 86 569 | 89 143 | | the convertible bond taken into | | | | | account, average, treasury shares | | | | | excluded (1,000) | | | | -------------------------------------------------------------------------------- | EPS, basic, EUR | -0.17 | -0.34 | -0.68 | -------------------------------------------------------------------------------- | EPS, diluted, EUR | -0.17 | -0.34 | -0.68 | -------------------------------------------------------------------------------- | Equity attributable to owners of the | 0.73 | 1.22 | 0.88 | | parent per share, EUR | | | | -------------------------------------------------------------------------------- | Price per earnings per share (P/E) | -7.6 | -3.6 | -1.6 | | ratio | | | | -------------------------------------------------------------------------------- | Price per equity attributable to | 1.75 | 1.02 | 1.23 | | owners of the parent per share | | | | -------------------------------------------------------------------------------- | Market capitalization, EUR million | 100.6 | 97.4 | 84.8 | -------------------------------------------------------------------------------- | Share turnover, % (number of shares | 11.7 | 7.0 | 9.0 | | traded, % of the average number of | | | | | shares) | | | | -------------------------------------------------------------------------------- | Number of shares traded, (1,000) | 9,175 | 5,465 | 7,033 | -------------------------------------------------------------------------------- | Closing price of the share, EUR | 1.28 | 1.24 | 1.08 | -------------------------------------------------------------------------------- | Highest quoted price, EUR | 1.65 | 1.44 | 1.44 | -------------------------------------------------------------------------------- | Lowest quoted price, EUR | 1.05 | 0.92 | 0.92 | -------------------------------------------------------------------------------- | Volume-weighted average quoted price, | 1.28 | 1.20 | 1.18 | | EUR | | | | -------------------------------------------------------------------------------- DEFINITIONS OF KEY RATIOS Financial ratios EBITDA = Profit / loss before depreciation, amortization and impairment, share of joint ventures' and associates' results included Operating profit (EBIT) = Profit / loss after depreciation, amortization and impairment, share of joint ventures' and associates' results included Cash and cash equivalents = Cash + other financial assets Net interest-bearing debt = Interest-bearing liabilities - cash and cash equivalents Financial expenses = Interest expenses of financial liabilities + fees of financing arrangements + foreign currency differences of financial liabilities Equity ratio, % = Equity (Equity attributable to owners of the parent + non-controlling interest) x 100 / Total assets - advance payments received Gearing, % = Interest-bearing liabilities x 100 / Equity (Equity attributable to owners of the parent + non-controlling interest) Net gearing, % = Net interest-bearing debt x 100 / Equity (Equity attributable to owners of the parent + non-controlling interest) Return on investments, % (ROCE) = Profit / loss before taxes + financial expenses x 100 / Equity + interest-bearing liabilities (average of 1 January and end of the reporting period) Return on equity, % (ROE)= Profit / loss for the reporting period x 100 / Equity (Equity attributable to owners of the parent + non-controlling interest) (average of 1 January and end of the reporting period) Per share data Earnings per share (EPS) = Net result attributable to owners of the parent / Adjusted average number of shares Diluted earnings per share = Net result attributable to owners of the parent adjusted with the result effect of convertible bond / Adjusted average number of shares, dilution effect of the convertible bond taken into account Equity attributable to owners of the parent per share = Equity attributable to owners of the parent at end of the period / Adjusted number of shares at end of the period Average trading price = Shares traded (EUR) / Shares traded (volume) Price per earnings per share (P/E) = Share price at end of the period / Earnings per share (EPS) Price per equity per share = Share price at period end / Equity attributable to owners of the parent per share Share turnover = The proportion of number of shares traded during the period to average number of shares Market capitalization = Number of shares at end of the period x share price at end of the period Number of shares at period end = Number of issued shares - treasury shares ACCOUNTING POLICIES The consolidated interim financial statements of Glaston Group are prepared in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting as approved by the European Union. They do not include all of the information required for full annual financial statements. The accounting principles applied in these interim financial statements are the same as those applied by Glaston in its consolidated financial statements as at and for the year ended 31 December, 2009, with the exception of the following new or revised or amended standards and interpretations which have been applied from 1 January, 2010: - IFRS 3 (revised) Business Combinations - Amendments to IAS 27 Consolidated and Separate Financial Statements. - IFRS 2 Share-based Payments - Group Cash-settled Share-based Payment Transactions In addition, Glaston applies the annual Improvements to IFRSs issued in April 2009. In accordance with the revised IFRS 3 standard all acquisition-related costs arising from the business combinations made after 1 January 2010 are recognized in profit or loss and not capitalized as a part of the purchase consideration, as previously were done. In addition, all consideration transferred in the business combination are measured at the acquisition-date fair value, and liabilities classified as contingent consideration are subsequently measured at fair value with any resulting gain or loss recognized in profit or loss. For each business combination it is possible to choose, whether the non-controlling interest is measured at fair value or as the non-controlling interest's proportionate share of the acquiree's net assets. This choice has an effect on the goodwill arising from the business combination. In accordance with the revised IAS 27 standard, the effects of the transactions made with non-controlling interests are recognized in equity, if there is no change in control. These transactions do not result in goodwill or gains or losses. If the control is lost, the possible remaining ownership share is measured at fair value and the resulting gain or loss is recognized in profit or loss. Also, in accordance with the revised standard, total comprehensive income is attributed also to non-controlling interest even if this would result in the non-controlling interest having a deficit balance. The change of IAS 36 Impairment of Assets included in the annual improvements of IFRSs changes the allocation of goodwill in Glaston. Goodwill has been allocated to reportable segments aggregated from operating segments. According to the change in the standard, the unit to which the goodwill can be allocated cannot be larger than an operating segment before it is aggregated to be a part of a reportable segment. Other new or amended standards or interpretations applicable from 1 January, 2010 are not material for Glaston Group. DIVESTMENTS Glaston's joint venture, the glass processing company INTERPANE Glass Oy, was sold to Rakla Finland Oy on 9 April, 2010. INTERPANE Glass Oy began its operations on 1st April, 2009 and was owned jointly by A A A Glass & Design Finland Oy and a subsidiary of Glaston Corporation. The shareholders of INTERPANE Glass agreed on rearranging their ownership, and as a result of the agreement 100 percent of the shares in INTERPANE Glass Oy were sold to Rakla Finland Oy. After the rearrangement transaction, Glaston still holds a EUR 4 million secured loan receivable in INTERPANE Glass Oy. The result effect of the rearrangement transaction, approximately EUR -2.6 million, has been recognized in Glaston's result in financial expenses, thus the rearrangement transaction has no effect on Glaston's operating result. SEGMENT INFORMATION The reportable segments of Glaston are Machines, Services and Software Solutions. The reportable segments apply Glaston Group's accounting and measurement principles. Glaston follows the same commercial terms in transactions between segments as with third parties. The reportable segments consist of operating segments, which have been aggregated in accordance with the criteria of IFRS 8.12. Operating segments have been aggregated, when the nature of the products and services is similar, the nature of the production process is similar, as well as the type or class of customers. Also the methods to distribute products or to provide services are similar. The reportable Machines segment consists of Glaston's operating segments manufacturing glass processing machines and related tools. The Machines segment includes manufacturing and sale of glass tempering, bending and laminating machines sold under Tamglass and Uniglass brands, glass pre-processing machines sold under the Bavelloni brand as well as manufacturing and sale of tools. The sale of tools was transferred to Machines segment from Services segment during the first quarter. Comparison information has been restated accordingly. Services segment includes maintenance and service of glass processing machines, machine upgrades and sale of spare parts. Services segment also provided service to a customer by operating of glass processing factory in Akaa, Finland, on behalf of the customer. Glaston has decided to cease the operations at the glass processing factory. Software Solutions segment's product offering, sold under the Albat+Wirsam brand, covers enterprise resource planning systems for the glass industry, software for window and door glass manufacturers, and software for glass processor's integrated line solutions. The unallocated operating result consists of head office operations of the Group and unallocated share of joint venture's result. -------------------------------------------------------------------------------- | Machines | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | External sales | 18.5 | 17.2 | 71.4 | 70.2 | 92.0 | -------------------------------------------------------------------------------- | Intersegment sales | 0.0 | 0.0 | 0.0 | 0.5 | 0.6 | -------------------------------------------------------------------------------- | Net sales | 18.5 | 17.3 | 71.4 | 70.6 | 92.5 | -------------------------------------------------------------------------------- | EBIT excluding | -2.6 | -4.9 | -5.8 | -14.7 | -22.4 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | -14.0 | -28.2 | -8.1 | -20.8 | -24.2 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | - | - | -3.8 | -15.9 | -------------------------------------------------------------------------------- | EBIT | -2.6 | -4.9 | -5.8 | -18.5 | -38.3 | -------------------------------------------------------------------------------- | EBIT-% | -14.0 | -28.2 | -8.1 | -26.2 | -41.4 | -------------------------------------------------------------------------------- | Net working capital | | | 35.5 | 42.4 | 34.4 | -------------------------------------------------------------------------------- | Number of personnel, | | | 626 | 802 | 778 | | average | | | | | | -------------------------------------------------------------------------------- | Number of personnel, end | | | 600 | 726 | 688 | | of period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Services | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | External sales | 7.3 | 8.4 | 22.4 | 28.0 | 35.9 | -------------------------------------------------------------------------------- | Intersegment sales | 0.4 | 0.7 | 0.9 | 1.5 | 1.9 | -------------------------------------------------------------------------------- | Net sales | 7.8 | 9.1 | 23.3 | 29.5 | 37.7 | -------------------------------------------------------------------------------- | EBIT excluding | 0.6 | -0.1 | 2.1 | -2.0 | -2.4 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | 7.8 | -1.1 | 8.9 | -6.7 | -6.4 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | - | - | -0.3 | -2.8 | -------------------------------------------------------------------------------- | EBIT | 0.6 | -0.1 | 2.1 | -2.2 | -5.2 | -------------------------------------------------------------------------------- | EBIT-% | 7.8 | -1.1 | 8.9 | -7.6 | -13.7 | -------------------------------------------------------------------------------- | Net working capital | | | 8.0 | 10.8 | 9.8 | -------------------------------------------------------------------------------- | Number of personnel, | | | 176 | 310 | 291 | | average | | | | | | -------------------------------------------------------------------------------- | Number of personnel, end | | | 163 | 253 | 215 | | of period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Software Solutions | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | External sales | 6.0 | 5.8 | 18.1 | 17.7 | 23.9 | -------------------------------------------------------------------------------- | Intersegment sales | 0.1 | 0.0 | 0.1 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Net sales | 6.1 | 5.8 | 18.1 | 17.7 | 23.9 | -------------------------------------------------------------------------------- | Share of associates' and | 0.0 | - | 0,0 | - | 0.0 | | joint ventures' results | | | | | | -------------------------------------------------------------------------------- | EBIT excluding | 0.2 | 0.5 | 1.4 | 0.6 | 0.4 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | 4.0 | 7.7 | 7.8 | 3.4 | 1.7 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | - | - | -0.3 | -1.7 | -------------------------------------------------------------------------------- | EBIT | 0.2 | 0.5 | 1.4 | 0.3 | -1.3 | -------------------------------------------------------------------------------- | EBIT-% | 4.0 | 7.7 | 7.8 | 1.9 | -5.5 | -------------------------------------------------------------------------------- | Net working capital | | | 6.9 | 6.6 | 5.8 | -------------------------------------------------------------------------------- | Number of personnel, | | | 220 | 239 | 248 | | average | | | | | | -------------------------------------------------------------------------------- | Number of personnel, end | | | 215 | 252 | 234 | | of period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Glaston Group | | | | | | -------------------------------------------------------------------------------- | EUR million | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | 18.5 | 17.3 | 71.4 | 70.6 | 92.5 | -------------------------------------------------------------------------------- | Services | 7.8 | 9.1 | 23.3 | 29.5 | 37.7 | -------------------------------------------------------------------------------- | Software Solutions | 6.1 | 5.8 | 18.1 | 17.7 | 23.9 | -------------------------------------------------------------------------------- | Other and intersegment | -0.5 | -0.7 | -1.0 | -1.9 | -2.4 | | sales | | | | | | -------------------------------------------------------------------------------- | Glaston Group total | 31.9 | 31.5 | 111.8 | 115.9 | 151.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBIT | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | -2.6 | -4.9 | -5.8 | -14.7 | -22.4 | -------------------------------------------------------------------------------- | Services | 0.6 | -0.1 | 2.1 | -2.0 | -2.4 | -------------------------------------------------------------------------------- | Software Solutions | 0.2 | 0.5 | 1.4 | 0.6 | 0.4 | -------------------------------------------------------------------------------- | Other and eliminations | -1.1 | -2.9 | -5.1 | -6.5 | -9.3 | -------------------------------------------------------------------------------- | EBIT excluding | -2.8 | -7.4 | -7.3 | -22.6 | -33.6 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Non-recurring items | - | - | - | -4.3 | -21.6 | -------------------------------------------------------------------------------- | EBIT | -2.8 | -7.4 | -7.3 | -26.9 | -55.3 | -------------------------------------------------------------------------------- | Net financial items | -2.9 | -0.9 | -5.9 | -1.7 | -2.3 | -------------------------------------------------------------------------------- | Result before income taxes | -5.7 | -8.4 | -13.3 | -28.6 | -57.6 | | and non-controlling | | | | | | | interest | | | | | | -------------------------------------------------------------------------------- | Income taxes | 0.3 | -0.3 | 0.0 | 1.8 | 4.0 | -------------------------------------------------------------------------------- | Result | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 | -------------------------------------------------------------------------------- | Number of personnel, | | | 1,046 | 1,392 | 1,344 | | average | | | | | | -------------------------------------------------------------------------------- | Number of personnel, end | | | 997 | 1,244 | 1,160 | | of period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segment assets | 30.09.2010 | 30.09.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Machines | 57.9 | 60.5 | 58.0 | -------------------------------------------------------------------------------- | Services | 11.1 | 13.6 | 13.9 | -------------------------------------------------------------------------------- | Software Solutions | 7.2 | 7.2 | 6.5 | -------------------------------------------------------------------------------- | Other | 0.0 | 0.1 | 0.2 | -------------------------------------------------------------------------------- | Total segment assets | 76.2 | 81.5 | 78.7 | -------------------------------------------------------------------------------- | Other assets | 138.9 | 170.0 | 147.9 | -------------------------------------------------------------------------------- | Total assets | 215.1 | 251.5 | 226.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segment liabilities | 30.09.2010 | 30.09.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Machines | 22.3 | 18.0 | 23.7 | -------------------------------------------------------------------------------- | Services | 3.1 | 2.8 | 4.1 | -------------------------------------------------------------------------------- | Software Solutions | 0.3 | 0.7 | 0.7 | -------------------------------------------------------------------------------- | Other | 0.3 | 0.2 | 0.2 | -------------------------------------------------------------------------------- | Total segment liabilities | 26.1 | 21.8 | 28.7 | -------------------------------------------------------------------------------- | Other liabilities | 131.2 | 133.5 | 128.6 | -------------------------------------------------------------------------------- | Total liabilities | 157.2 | 155.3 | 157.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net working capital | 30.09.2010 | 30.09.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Machines | 35.5 | 42.4 | 34.4 | -------------------------------------------------------------------------------- | Services | 8.0 | 10.8 | 9.8 | -------------------------------------------------------------------------------- | Software Solutions | 6.9 | 6.6 | 5.8 | -------------------------------------------------------------------------------- | Other | -0.3 | -0.1 | 0.0 | -------------------------------------------------------------------------------- | Total Glaston Group | 50.1 | 59.6 | 50.0 | -------------------------------------------------------------------------------- In segment reporting net working capital consists of inventory, external trade receivables and trade payables and advances received. Order intake relating to Software Solutions segment was restated in the second quarter so that it currently includes, in addition to license orders, also the software maintenance order intake. -------------------------------------------------------------------------------- | Order intake | | | | -------------------------------------------------------------------------------- | EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Machines | 69.3 | 68.7 | 98.8 | -------------------------------------------------------------------------------- | Services | 21.8 | 24.1 | 32.6 | -------------------------------------------------------------------------------- | Software Solutions | 17.5 | 14.7 | 20.2 | -------------------------------------------------------------------------------- | Total Glaston Group | 108.6 | 107.4 | 151.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales by geographical areas | | | -------------------------------------------------------------------------------- | EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | EMEA | 59.5 | 71.0 | 90.7 | -------------------------------------------------------------------------------- | Asia | 24.0 | 17.7 | 24.7 | -------------------------------------------------------------------------------- | America | 28.3 | 27.2 | 36.4 | -------------------------------------------------------------------------------- | Total | 111.8 | 115.9 | 151.8 | -------------------------------------------------------------------------------- QUARTERLY NET SALES, OPERATING RESULT, ORDER INTAKE AND ORDER BOOK -------------------------------------------------------------------------------- | Machines | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 7-9/ | 4-6/ | 1-3 | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2010 | / | 2009 | 2009 | 2009 | 2009 | | | | | 201 | | | | | | | | | 0 | | | | | -------------------------------------------------------------------------------- | External | 18.5 | 28.5 | 24. | 21.8 | 17.2 | 30.1 | 22.8 | | sales | | | 3 | | | | | -------------------------------------------------------------------------------- | Intersegment | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | -0.3 | 0.7 | | sales | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 18.5 | 28.5 | 24. | 21.9 | 17.3 | 29.8 | 23.6 | | | | | 3 | | | | | -------------------------------------------------------------------------------- | EBIT | -2.6 | -1.7 | -1. | -7.7 | -4.9 | -4.6 | -5.3 | | excluding | | | 5 | | | | | | non-recurring | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | -14. | -5.9 | -6. | -35.0 | -28.2 | -15.4 | -22.3 | | non-recurring | 0 | | 1 | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- | Non-recurring | - | - | - | -12.1 | - | -3.8 | - | | items | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -2.6 | -1.7 | -1. | -19.8 | -4.9 | -8.4 | -5.3 | | | | | 5 | | | | | -------------------------------------------------------------------------------- | EBIT-% | -14. | -5.9 | -6. | -90.5 | -28.2 | -28.1 | -22.3 | | | 0 | | 1 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Services | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | External sales | 7.3 | 7.0 | 8.0 | 7.9 | 8.4 | 9.2 | 10.4 | -------------------------------------------------------------------------------- | Intersegment | 0.4 | 0.2 | 0.2 | 0.4 | 0.7 | 0.6 | 0.3 | | sales | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 7.8 | 7.3 | 8.2 | 8.2 | 9.1 | 9.7 | 10.7 | -------------------------------------------------------------------------------- | EBIT excluding | 0.6 | 0.5 | 1.0 | -0.5 | -0.1 | -0.2 | -1.7 | | non-recurring | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | 7.8 | 6.6 | 12.1 | -5.5 | -1.1 | -1.7 | -16.0 | | non-recurring | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- | Non-recurring | - | - | - | -2.5 | - | -0.3 | - | | items | | | | | | | | -------------------------------------------------------------------------------- | EBIT | 0.6 | 0.5 | 1.0 | -2.9 | -0.1 | -0.4 | -1.7 | -------------------------------------------------------------------------------- | EBIT-% | 7.8 | 6.6 | 12.1 | -35.6 | -1.1 | -4.5 | -16.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Software | | | | | | | | | Solutions | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | External sales | 6.0 | 6.0 | 6.0 | 6.3 | 5.8 | 5.9 | 6.0 | -------------------------------------------------------------------------------- | Intersegment | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | sales | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 6.1 | 6.0 | 6.1 | 6.3 | 5.8 | 5.9 | 6.0 | -------------------------------------------------------------------------------- | Share of | 0.0 | - | - | 0.0 | 0.0 | 0.0 | 0.0 | | associates' and | | | | | | | | | joint ventures' | | | | | | | | | results | | | | | | | | -------------------------------------------------------------------------------- | EBIT excluding | 0.2 | 0.5 | 0.7 | -0.2 | 0.5 | 0.5 | -0.4 | | non-recurring | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- | EBIT-%, excl. | 4.0 | 7.8 | 11.7 | -2.9 | 7.7 | 8.7 | -6.0 | | non-recurring | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- | Non-recurring | - | - | - | -1.5 | - | -0.3 | - | | items | | | | | | | | -------------------------------------------------------------------------------- | EBIT | 0.2 | 0.5 | 0.7 | -1.6 | 0.5 | 0.2 | -0.4 | -------------------------------------------------------------------------------- | EBIT-% | 4.0 | 7.8 | 11.7 | -26.2 | 7.7 | 4.1 | -6.0 | -------------------------------------------------------------------------------- Net sales -------------------------------------------------------------------------------- | EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | 18.5 | 28.5 | 24.3 | 21.9 | 17.3 | 29.8 | 23.6 | -------------------------------------------------------------------------------- | Services | 7.8 | 7.3 | 8.2 | 8.2 | 9.1 | 9.7 | 10.7 | -------------------------------------------------------------------------------- | Software | 6.1 | 6.0 | 6.1 | 6.3 | 5.8 | 5.9 | 6.0 | | Solutions | | | | | | | | -------------------------------------------------------------------------------- | Other and | -0.5 | -0.2 | -0.2 | -0.6 | -0.7 | -0.2 | -1.0 | | intersegment | | | | | | | | | sales | | | | | | | | -------------------------------------------------------------------------------- | Glaston Group | 31.9 | 41.5 | 38.4 | 35.8 | 31.5 | 45.2 | 39.2 | | total | | | | | | | | -------------------------------------------------------------------------------- EBIT -------------------------------------------------------------------------------- | EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | -2.6 | -1.7 | -1.5 | -7.7 | -4.9 | -4.6 | -5.3 | -------------------------------------------------------------------------------- | Services | 0.6 | 0.5 | 1.0 | -0.5 | -0.1 | -0.2 | -1.7 | -------------------------------------------------------------------------------- | Software | 0.2 | 0.5 | 0.7 | -0.2 | 0.5 | 0.5 | -0.4 | | Solutions | | | | | | | | -------------------------------------------------------------------------------- | Other and | -1.1 | -2.1 | -1.9 | -2.7 | -2.9 | -1.9 | -1.6 | | eliminations | | | | | | | | -------------------------------------------------------------------------------- | EBIT excluding | -2.8 | -2.8 | -1.7 | -11.0 | -7.4 | -6.2 | -9.0 | | non-recurring | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- | Non-recurring | - | - | - | -17.3 | - | -4.3 | - | | items | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -2.8 | -2.8 | -1.7 | -28.4 | -7.4 | -10.5 | -9.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order intake | | | | | | | | -------------------------------------------------------------------------------- | EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | 25.3 | 23.8 | 20.3 | 30.1 | 23.0 | 30.0 | 15.7 | -------------------------------------------------------------------------------- | Services | 7.7 | 7.4 | 6.7 | 8.5 | 7.8 | 7.6 | 8.7 | -------------------------------------------------------------------------------- | Software | 6.1 | 5.5 | 5.9 | 5.5 | 4.4 | 5.2 | 5.1 | | Solutions | | | | | | | | -------------------------------------------------------------------------------- | Total Glaston | 39.0 | 36.7 | 32.9 | 44.1 | 35.2 | 42.8 | 29.5 | | Group | | | | | | | | -------------------------------------------------------------------------------- Order book -------------------------------------------------------------------------------- | EUR million | 30.9. | 30.6. | 31.3. | 31.12. | 30.9. | 30.6. | 31.3. | | | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | Machines | 34.7 | 25.6 | 32.4 | 39.8 | 35.8 | 30.8 | 38.2 | -------------------------------------------------------------------------------- | Services | 1.9 | 0.9 | 0.7 | 1.6 | 1.6 | 2.3 | 4.0 | -------------------------------------------------------------------------------- | Software | 4.0 | 3.7 | 3.8 | 4.1 | 3.5 | 4.0 | 3.7 | | Solutions | | | | | | | | -------------------------------------------------------------------------------- | Total Glaston | 40.7 | 30.2 | 36.9 | 45.5 | 40.9 | 37.1 | 45.9 | | Group | | | | | | | | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | EUR million | 30.9.2010 | 30.9.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Mortgages and pledges | | | | -------------------------------------------------------------------------------- | On own behalf | 158.1 | 0.2 | 130.8 | -------------------------------------------------------------------------------- | Guarantees | | | | -------------------------------------------------------------------------------- | On own behalf | 0.8 | 0.7 | 0.6 | -------------------------------------------------------------------------------- | On behalf of others | 0.1 | 0.1 | 0.1 | -------------------------------------------------------------------------------- | Lease obligations | 12.0 | 14.7 | 13.4 | -------------------------------------------------------------------------------- | Repurchase obligations | 0.2 | 0.3 | 0.2 | -------------------------------------------------------------------------------- | Other obligation on own behalf | 0.0 | 0.1 | - | -------------------------------------------------------------------------------- | Capital commitments in relation to | - | 0.7 | 0.7 | | interests in joint ventures | | | | -------------------------------------------------------------------------------- Glaston Group has international operations and can be a defendant or plaintiff in a number of legal proceedings incidental to those operations. The Group does not expect the outcome of any unmentioned legal proceedings currently pending, either individually or in the aggregate, to have material adverse effect upon the Group's consolidated financial position or results of operations. DERIVATIVE INSTRUMENTS -------------------------------------------------------------------------------- | EUR million | 30.9.2010 | | 30.9.200 | | 31.12.200 | | | | | | 9 | | 9 | | -------------------------------------------------------------------------------- | | Nominal | Fair | Nominal | Fair | Nominal | Fair | | | value | value | value | value | value | value | -------------------------------------------------------------------------------- | Currency | | | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Currency | 2.6 | 0.1 | 2.7 | 0.0 | 2.6 | -0.1 | | forwards | | | | | | | -------------------------------------------------------------------------------- | Commodity | | | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Electricity | 0.6 | 0.1 | - | - | - | - | | forwards | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Derivative instruments are used only for hedging purposes. Nominal values of derivative instruments do not necessarily correspond with the actual cash flows between the counterparties and do not therefore give a fair view of the risk position of the Group. The fair values are based on market valuation on the date of reporting. PROPERTY, PLANT AND EQUIPMENT -------------------------------------------------------------------------------- | EUR million | | | | -------------------------------------------------------------------------------- | Changes in property, plant and | 1-9/2010 | 1-9/2009 | 1-12/2009 | | equipment | | | | -------------------------------------------------------------------------------- | Carrying amount at beginning of the | 24.7 | 35.0 | 35.0 | | period | | | | -------------------------------------------------------------------------------- | Additions | 0.5 | 1.2 | 1.2 | -------------------------------------------------------------------------------- | Disposals | -0.4 | -5.3 | -6.2 | -------------------------------------------------------------------------------- | Depreciation and amortization | -2.6 | -3.1 | -4.1 | -------------------------------------------------------------------------------- | Impairment losses and reversals of | -0.2 | -1.0 | -1.2 | | impairment losses | | | | -------------------------------------------------------------------------------- | Reclassification and other changes | -0.3 | 0.5 | -0.1 | -------------------------------------------------------------------------------- | Exchange differences | 0.4 | -0.1 | 0.0 | -------------------------------------------------------------------------------- | Carrying amount at end of the | 22.1 | 27.1 | 24.7 | | period | | | | -------------------------------------------------------------------------------- At the end of the review period, Glaston Group did not have contractual commitments to acquire property, plant and equipment. SHAREHOLDER INFORMATION Largest shareholders 30 September, 2010 -------------------------------------------------------------------------------- | | Shareholder | Number of | % of shares and | | | | shares | votes | -------------------------------------------------------------------------------- | 1 | GWS Trade Oy | 13,446,700 | 17.0 | -------------------------------------------------------------------------------- | 2 | Oy G.W.Sohlberg Ab | 12,819,400 | 16.2 | -------------------------------------------------------------------------------- | 3 | Sumelius Birgit | 3,644,200 | 4.6 | -------------------------------------------------------------------------------- | 4 | Fondita Nordic Micro Cap | 2,350,000 | 3.0 | | | Investment Fund | | | -------------------------------------------------------------------------------- | 5 | Oy Investsum Ab | 1,820,000 | 2.3 | -------------------------------------------------------------------------------- | 6 | Suutarinen Helena Estate | 1,802,400 | 2.3 | -------------------------------------------------------------------------------- | 7 | Von Christierson Charlie | 1,600,000 | 2.0 | -------------------------------------------------------------------------------- | 8 | Investment Fund Aktia Capital | 1,484,650 | 1.9 | -------------------------------------------------------------------------------- | 9 | Sumelius Bjarne Henning | 1,225,936 | 1.6 | -------------------------------------------------------------------------------- | 10 | Sumelius-Koljonen Barbro | 1,206,875 | 1.5 | -------------------------------------------------------------------------------- | 11 | Sumelius-Fogelholm Birgitta | 1,014,000 | 1.3 | | | Christin | | | -------------------------------------------------------------------------------- | 12 | Sumelius Bertil Christer | 803,800 | 1.0 | -------------------------------------------------------------------------------- | 13 | Huber Karin | 800,800 | 1.0 | -------------------------------------------------------------------------------- | 14 | Evli Alexander Management Oy | 788,582 | 1.0 | -------------------------------------------------------------------------------- | 15 | ABN Amro Small Cap Mutual Fund | 670,000 | 0.8 | -------------------------------------------------------------------------------- | 16 | Fontell Niilo Armas | 640,700 | 0.8 | -------------------------------------------------------------------------------- | 17 | Nordea Life Assurance Finland Ltd. | 635,207 | 0.8 | -------------------------------------------------------------------------------- | 18 | Pihkala-Vlassis Anna Marja | 615,520 | 0.8 | -------------------------------------------------------------------------------- | 19 | Paloheimo Arvi Martin-Brand | 510,000 | 0.6 | -------------------------------------------------------------------------------- | 20 | Special Investment Fund EQ | 500,000 | 0.6 | | | Pikkujättiläiset | | | -------------------------------------------------------------------------------- | | Total 20 largest shareholders | 48,378,770 | 61.0 | -------------------------------------------------------------------------------- | | Other shareholders | 30,896,030 | 38.9 | -------------------------------------------------------------------------------- | | Not in the book-entry securities | 75,200 | 0.1 | | | system (joint account) | | | -------------------------------------------------------------------------------- | | Total | 79,350,000 | 100.0 | -------------------------------------------------------------------------------- | | Treasury shares | -788,582 | 1.0 | -------------------------------------------------------------------------------- | | Total excluding treasury shares | 78,561,418 | | -------------------------------------------------------------------------------- RELATED PARTY TRANSACTIONS Glaston Group's related parties include the parent, subsidiaries, associates and joint ventures. Related parties also include the members of the Board of Directors and the Group's Executive Management Group, the CEO and their family members. Glaston follows the same commercial terms in transactions with associates and joint ventures and other related parties as with third parties. During the review period Glaston's related party transactions included leasing of premises to a joint venture. In addition, the Group has leased premises from companies owned by individuals belonging to the management. The lease payments were in January - September EUR 0.5 (0.5) million. During the review period there were no other related party transactions whose terms would differ from the terms in transactions with third parties than what has been described in section “Transactions with joint ventures and associates”. Share-based payments The Board of Directors of Glaston Corporation decided in June, 2010, a new share-based incentive plan to form a part of the long-term incentive and commitment program for the top management of Glaston. The share-based incentive plan offers the participants a possibility to earn Glaston's shares as remuneration for achieving established earning criteria. The plan has one earning period covering the years 2010 and 2011, and the earnings criteria is the development of the consolidated operating profit of Glaston. A possible award shall be paid after the release of the 2011 financial statements in spring 2012. An aggregate gross maximum number of Glaston shares granted under the plan is approximately 2.5 million shares. Income taxes and other statutory costs arising from the award will be deducted from the gross number of shares before share delivery. In accordance with the terms of the CEO's share-based incentive plan, Glaston's CEO Arto Metsänen received in September 50 000 shares in Glaston Corporation. The fair value of the shares was 65 500 EUR. The shares cannot be transferred further within two years from the reward payment date. The expenses arising from Glaston's share-based incentive plans were EUR 0.2 (0.2) million during the review period. Transactions with joint ventures and associates Glaston had leased property to the joint venture during the review period in January - April. The shares in INTERPANE Glass Oy were sold to Rakla Finland Oy on 9 April, 2010. As a part of the ownership arrangement, Glaston waived its rights to EUR 3.3 million of the loan granted to INTERPANE Glass Oy. The result effect of the waiver of the loan is included in the appr. EUR 2.6 million financial expense booked from the arrangement. Glaston did not have transactions with the associate. -------------------------------------------------------------------------------- | Transactions with joint ventures and joint venture balances | -------------------------------------------------------------------------------- INTERPANE Glass Oy was Glaston's joint venture during 31 March, 2009 - 9 April, 2010. -------------------------------------------------------------------------------- | EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 | -------------------------------------------------------------------------------- | Sales to joint ventures | - | - | 0.0 | -------------------------------------------------------------------------------- | Other operating income from joint | 0.1 | 0.2 | 0.3 | | ventures | | | | -------------------------------------------------------------------------------- | Interest income from joint ventures | 0.1 | 0.2 | 0.3 | -------------------------------------------------------------------------------- | Other financial expenses | -3.3 | - | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Receivables and liabilities with | 1-9/2010 | 1-9/2009 | 1-12/2009 | | joint ventures | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current receivables | - | 0.7 | 1.2 | -------------------------------------------------------------------------------- | Non-current loan receivables | - | 5.8 | 5.9 | -------------------------------------------------------------------------------- | Trade payables | - | 0.0 | 0.1 | --------------------------------------------------------------------------------
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