2011-03-01 13:00:00 CET
2011-03-01 13:00:09 CET
REGLAMENTUOJAMA INFORMACIJA
Glaston Oyj Abp - Financial Statement Release
Glaston Corporation Financial Statements 1 January - 31 December 2010
Helsinki, Finland, 2011-03-01 13:00 CET (GLOBE NEWSWIRE) -- GLASTON CORPORATION
FINANCIAL STATEMENTS 1.3.2011 14.00
Glaston Corporation Financial Statements 1 January - 31 December 2010
- Orders received in January-December totalled EUR 148.3 (151.5) million.
Orders received in the fourth quarter totalled UR 39.7 (44.1) million.
- Glaston's order book on 31 December 2010 was EUR 42.1 (45.5) million.
- Consolidated net sales in January-December were EUR 149.4 (151.8) million.
Final quarter net sales were EUR 37.7 (35.8) million.
- The operating result in January-December was a loss of EUR 24.9 (55.3 loss)
million, i.e. -16.7 (-36.4)% of net sales.
- The operating result in January-December, excluding non-recurring items, was
a loss of EUR 11.3 (33.6 loss) million, i.e. -7.5 (-22.2)% of net sales. The
final quarter operating result, excluding non-recurring items, was a loss of
EUR 3.9 (11.0 loss) million, i.e. -10.5 (-30.8)% of net sales.
- Non-recurring items in 2010 totalled EUR -13.7 (-21.6) million and they were
recognised in the final quarter.
- Return on capital employed (ROCE) was -19.0 (-32.1)%.
- Earnings per share in January-December were EUR -0.41 (-0.68) and
fourth-quarter earnings per share were EUR -0.24 (-0.34).
- The Board of Directors proposes to the Annual General Meeting that no
dividend be distributed.
- Glaston expects that 2011 net sales will be at least at the 2010 level and
that the operating result will return to a positive trend.
President & CEO Arto Metsänen:
2010 was challenging for Glaston. Demand for our products remained at a low
level and the company's profitability was very weak. Our operating year was
marked by extensive efficiency measures to reverse the trend in profitability.
Despite the subdued market, our net sales remained at the previous year's
level. Our operating result clearly improved, which shows that our adjustment
and efficiency measures are working.
Our most important goal for 2011 is a clear improvement in operational
profitability. During 2010, due to the substantial measures implemented, our
organisation has adjusted to the present market situation, and the foundation
has been laid for profitable operations. The financing package signed at the
end of February has safeguarded the company's long-term funding. Now we can
focus on growing our business and serving our customers.
Markets
In demand for glass processing machines, cautious signs of a pick-up in the
market were evident during 2010. Glaston's markets developed unevenly. Demand
continued to be active in Asia and South America. In North America, faint signs
of a recovery were perceptible in the latter part of the year. In Europe, the
market situation continued to be challenging.
Machines
2010 remained challenging for the Machines segment, even though signs of
recovery were evident in certain markets.
Financial market instability and overcapacity among glass processors continued
to impact customers' investment decisions in Europe and North America. In
Europe, the market situation continued to be weak throughout the year, but in
the North American market faints signs of recovery were perceptible in the
final quarter. Demand continued to be active throughout the year in Asia and
South America. In Asia, the automotive and construction industries' need for
glass increased.
Demand for solar energy solutions picked up. This customer segment became
highly active in the latter part of the year, as demand shifted to Asia, and to
China in particular. The unique TFC 2000 machine line, developed by Glaston and
the Finnish company Beneq Oy for the production of thin-film coated solar panel
glass was well received in the market.
During the year, the product offering was strengthened by three new flat
tempering machines and two new cutting lines.
In 2010 improving profitability was the main focus in the development of the
Machines segment's business. Efficiency and adjustment measures continued and
were directed mainly at Finland and Italy. Production costs were lowered by
enhancing sourcing efficiency and by increasing production in China. The
adjustment measures also resulted in personnel reductions and at the end of
2010 the segment had 577 employees (2009 688).
Orders received in the Machines segment totalled EUR 96.2 (98.8) million in
2010. In January-December, the Machines segment's net sales totalled EUR 95.0
(92.5) million.
Services
In 2010 the Services segment market recovered after faltering the previous
year. The number of new service contracts rose, and in Asia and North America
demand for upgrade products picked up.
In 2010 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 real-time quality measurement system for flat tempering machines was
launched in the autumn and it was very well received a by the customers. 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.
Orders received in the Services segment totalled EUR 29.8 (32.6) million in
2010. In January-December, the Services segment's net sales were EUR 32.0
million (in 2009 EUR 37.7 million, including Tamglass Glass Processing's share
of EUR 5.8 million). Operational profitability improved as a result of internal
efficiency measures, product range adjustments and area-specific marketing
measures. At the end of 2010 the segment had 149 employees (2009 215).
Software Solutions
In 2010 demand in the Software Solutions segment picked up in Central Europe,
but fell slightly in North America and Asia.
In mature markets, investments were directed at modernising production
processes towards a higher degree of automation, shorter delivery times and
greater flexibility. In developing markets, such as Eastern Europe, Asia and
the Pacific region, systems in a more standard form fulfiled customers' needs.
The AWFactory and Panorama products, intended for managing line control
systems, were developed further and new features added to the systems.
The Software Solutions segment adjusted its operations to the market situation
and at the end of the year the segment had 214 (234) employees.
Orders received in the Software Solutions segment totalled EUR 22.3 (20.2)
million in 2010. In January-December, the Software Solutions segment's net
sales totalled EUR 23.9 (23.9) million.
Orders received
Glaston's orders received during the financial year totalled EUR 148.3 (151.5)
million. Of orders received, the Machines segment accounted for 65%, the
Services segment 20% and the Software Solutions segment 15%.
Orders received during the final quarter of the year totalled EUR 39.7 (44.1)
million.
Order book
Glaston's order book on 31 December 2010 was EUR 42.1 (45.5) million. Of the
order book, the Machines segment accounted for EUR 37.4 (39.8) million, the
Services segment EUR 1.2 (1.6) million and Software Solutions segment EUR 3.5
(4.1) million.
Order book, EUR million 31.12.2010 31.12.2009 Change, %
----------------------------------------------------------
Machines 37.4 39.8 -6.0%
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Services 1.2 1.6 -25.0%
----------------------------------------------------------
Software Solutions 3.5 4.1 -14.6%
----------------------------------------------------------
Total 42.1 45.5 -7.5%
----------------------------------------------------------
Net sales and operating result
Glaston's net sales in January-December totalled EUR 149.4 (151.8) million. The
Machines segment's net sales in the review period were EUR 95.0 (92.5) million,
the Services segment's net sales EUR 32.0 (37.7) million and the Software
Solutions segment's net sales EUR 23.9 (23.9) million.
Final quarter net sales were EUR 37.7 (35.8) million. Final quarter net sales
were distributed across the business segments as follows: Machines EUR 23.6
(21.9) million, Services EUR 8.8 (8.2) million and Software Solutions EUR 5.8
(6.3) million.
Net sales, EUR million 2010 2009
--------------------------------------
Machines 95.0 92.5
--------------------------------------
Services 32.0 37.7
--------------------------------------
Software Solutions 23.9 23.9
--------------------------------------
Other and internal sales -1.5 -2.4
--------------------------------------
Total 149.4 151.8
--------------------------------------
The operating result, excluding non-recurring items, was a loss of EUR 11.3
(33.6 loss) million, i.e. -7.5 (-22.2)% of net sales. The operating result for
the final quarter, excluding non-recurring items, was a loss of EUR 3.9 (11.0
loss) million.
The operating result was a loss of EUR 24.9 (55.3 loss) million. Non-recurring
items in 2010 totalled EUR -13.7 (-21.6) million and they were recognised in
the final quarter. Non-recurring items in 2010 consisted of impairment losses
on goodwill and intangible and tangible assets and cancellations thereof (EUR
-6.4 million net), personnel and other expenses resulting from structural
changes (EUR -5.5 million), and inventory expense recognitions resulting from
changes in the product portfolio (EUR -2.2 million). In addition, non-recurring
items include EUR 0.4 million from the cancellation of provisions made in
previous years.
The Machines segment's operating result in January-December was a loss of EUR
20.4 (38.3 loss) million and in the final quarter a loss of EUR 14.7 (19.8
loss) million. The 2010 operating result, excluding non-recurring items, was a
loss of 8.5 (22.4 loss) million and in the final quarter a loss of EUR 2.7 (7.7
loss) million.
The Services segment's operating result in January-December was a profit of EUR
1.1 (5.2 loss) million and in the final quarter a loss of EUR 1.0 (2.9 loss)
million. The segment's operating result for the year, excluding non-recurring
items, was a profit of EUR 3.3 (2.4 loss) million and in the final quarter a
profit of EUR 1.2 (0.5 loss) million. The Services segment's operating result
is adversely affected by the EUR 2.1 million operating loss (4.2 loss) of
Tamglass Glass Processing.
The Software Solutions segment's operating result in January-December was a
profit of EUR 1.5 (1.3 loss) million and in the final quarter a profit of EUR
0.1 (1.6 loss) million. The segment's operating result for 2010, excluding
non-recurring items, was a profit of EUR 1.1 (0.4 profit) million and in the
final quarter a loss of EUR 0.3 (0.2 loss) million.
Operating result, EUR million 1-12/2010 1-12/2009
---------------------------------------------------------------------
Machines -8.5 -22.4
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Services 3.3 -2.4
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Software Solutions 1.1 0.4
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Other and eliminations -7.1 -9.3
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Total -11.3 -33.6
---------------------------------------------------------------------
Non-recurring items -13.7 -21.6
---------------------------------------------------------------------
Operating result, including non-recurring items -24.9 -55.3
---------------------------------------------------------------------
The loss for the review period was EUR 32.0 (53.6 loss) million and in the
final quarter the loss was EUR 18.8 (26.8 loss) million. In January-December,
the return on capital employed (ROCE) was -19.0 (-32.1)%. Earnings per share in
January-December were EUR -0.41 (-0.68) and fourth-quarter earnings per share
were EUR -0.24 (-0.34).
Financial position, cash flow and financing
At the end of the review period, the consolidated asset total was EUR 194.9
(226.7) million. The equity attributable to the owners of the parent was EUR
39.1 (69.0) million, i.e. EUR 0.50 (0.88) per share. The equity ratio on 31
December 2010 was 22.1 (33.1)%.
Return on equity in January-December was -58.7 (-55.5)%.
Cash flow from operating activities, excluding the change in working capital,
was EUR -13.7 (-29.8) 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 2.7 (28.6)
million. Cash flow from investments was EUR -3.5 (-7.5) million. Cash flow from
financing activities in January-December was EUR 11.9 (12.3) 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 15.7
(15.6) million. Interest-bearing net debt totalled EUR 74.6 (63.7) million and
net gearing was 189.0 (91.9)%.
At end of the third quarter of 2010, the company's loan covenants, operating
margin and net gearing would not have met the limits originally agreed in
Glaston's revolving credit facility agreement. Glaston agreed, however, with
its financial institutions that the covenant terms of the revolving credit
facility agreement will not be applied. Negotiations with the financial
institutions on the renewal of existing financing agreements negotiations were
completed before the financial statements were authorized for issue. Glaston's
financing package was published in a Stock Exchange Release on 25 February 2011
and the content is described in the section “Events after the review period” of
this release.
Adjustment measures
In 2010 Glaston implemented extensive adjustment measures worldwide, with the
focus being mainly on Europe. 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.
In December 2010, Glaston initiated negotiations on adjustment measures aimed
at improving the profitability of the Machines segment. The most extensive
adjustments were directed at Italy, where negotiations on the reduction of
around 40 jobs will be completed during the first quarter of 2011. Measures
directed at Finland were completed during the review period, and as a result of
the negotiation process around 25 employees were made redundant. During the
final quarter of 2010, personnel reductions were also made in the European area
organisation, in which the expansion of a distributor- and agent-based
operating model led to the termination of around 25 employment relationships.
During 2010 the number of personnel in Europe has been reduced by 240 (-48 in
Finland, -192 in the rest of Europe). The Group had substantial temporary
lay-off programmes under way in Finland and Italy during the year.
Research and product development
Glaston's research and product development expenditure in 2010 totalled EUR 9.8
(13.6) million, i.e. 6.6 (8.9)% of net sales. In product development, most
attention was focused on improving the user friendliness of products as well as
on production efficiency and reliability, and end-product quality.
During the year, Glaston launched onto the market a number of product
solutions, of which the most significant were the Tamglass FC500 and Tamglass
RC200 flat tempering machines, Tamglass Power Control, directed at the South
American LowE glass market, the iControL control and automation system, the
iLooK online quality measurement system and the Vortex Pro convention system.
As the focus of the market shifted to Asia, Glaston moved manufacturing of
glass cutting machines from Italy to its Tianjin factory in China. Production
of the Bavelloni ProCut and Bavelloni Dragon cutting lines, directed at the
Asian market, was initiated in the spring.
In autumn 2010, Glaston entered into a cooperation agreement with the Finnish
company Beneq Oy and launched onto the market the unique Beneq-Glaston TFC 2000
machine line, developed jointly by the companies, for the production of
transparent conducting oxide (TCO) solar panel (PV) glass.
Product development in the Software Solutions segment focused on the
development of additional features for AWFactory and Panorama products.
Capital expenditure, depreciation and amortisation
Glaston's gross capital expenditure totalled EUR 4.6 (8.5) million. The most
significant investments in 2010 were in product development.
During 2010 depreciation and amortisation of property, plant and equipment
totalled EUR 7.5 (8.4) million. In addition, recognitions of impairment losses
and cancellations of earlier impairment losses totalled EUR 7.0 (12.5) million
net, of which goodwill accounted for EUR 5.8 (7.8) million.
Changes in the company's management
Tapio Engström was appointed Chief Financial Officer as of 1 July 2010, Pekka
Huuhka Senior Vice President, Supply Chain as of 1 August 2010, and Tapani
Lankinen Senior Vice President, Human Resources as of 1 October 2010. All are
members of Glaston's Executive Management Group. Frank Chengdong Zhang, General
Manager, Asia, was appointed member of the Executive Management Group as of 1
September 2010.
Organisation and personnel
During 2010, measures to adjust personnel numbers to the changed market
situation continued. In Europe, the number of personnel declined significantly
(-240) and was directed mainly at Finland, Italy and the European area
organisation. In Asia, human resources were strengthened (+52). Most of the new
personnel work in production roles, but the product development and procurement
organisations were also strengthened.
To standardise the organisation and operating practices, Glaston's values, "The
Glaston Way”, were launched during the year.
On 31 December 2010, Glaston Corporation had a total of 957 (1,160) employees.
Of the Group's employees, 19% worked in Finland and 44% elsewhere in the EMEA
area, 23% in Asia and 14% in the Americas. The average number of employees was
1,028 (1,344).
Group structural changes in 2010
The US company Glaston North America, Inc. was merged with Glaston America Ltd.
and the Brazilian company Brazil Glaston Brazil Ltda was merged with Z.
Bavelloni South America Ltda in January. The Japanese company Glaston Japan,
Inc. was dissolved in March and the Chinese company Glaston Shanghai Co. Ltd.
was merged with Glaston Management (Shanghai) Co. Ltd. in June.
The German company Albat+Wirsam Software AG changed its name to Albat+Wirsam
Software GmbH, and Tamglass EMA Sales Ltd. Oy changed its name to Glaston
International Oy.
Albat+Wirsam Software GmbH founded a branch in Spain.
Environment
Glaston strives to promote sustainable development both in terms of the
products and services it offers to its customers and in its own operations.
Even though Glaston's own production activity does not, in principle,
significantly load the environment, the company even so continually develops
its processes to take the principles of sustainable development still better
into account. In terms of the products it manufactures, Glaston's objective is
to make glass processing machines as energy-efficient as possible. The life
cycle of a glass processing machine is long, on average around 20 years. The
design of Glaston's machines takes into account the machines' entire life
cycle, and they are built to withstand continuous use at high production
capacities. Special attention is also paid to the machines' energy use. During
the review period, Glaston launched the Tamglass FC500 tempering line, which in
terms of its energy efficiency is around 30% higher and in terms of energy
glass tempering capacity up to 40% higher than a traditional tempering line.
Shares and share prices
Glaston Corporation's paid and registered share capital on 31 December 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 financial year, 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.
During 2010, a total of 15,419,409 of the company's shares were traded,
representing approximately 20% of the average number of shares. The lowest
price paid for a share was EUR 0.80 and the highest price EUR 1.65. The
volume-weighted average price of shares traded during January-December was EUR
1.17. The closing price on 31 December 2009 was EUR 1.13.
On 31 December 2010, the market capitalisation of the company's shares,
treasury shares excluded, was EUR 88.8 (84.8) million. The equity per share
attributable to owners of the parent was EUR 0.50 (0.88).
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.
On the basis of the scheme, a maximum total gross number 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. The target group for the scheme
will consist during the performance period of at most 12 people.
In addition to the above-mentioned incentive scheme, the President & CEO of
Glaston Corporation has a separate share bonus arrangement, on the basis of
which he was awarded a total of 50,000 Glaston Corporation shares on 3
September 2010.
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 ending 31 December 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 of Glaston Corporation 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 the
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.
Events after the review period
Senior Vice President, Machines and member of the Executive Management Group
left Glaston on 1 February 2011. No new Senior Vice President, Machines will be
appointed; the business area will report directly to the President & CEO.
Glaston signed on 25 february 2011 the financing package to provide
approximately EUR 84 million to refinance its current short-term syndicated
loan facility, to increase its financial flexibility and to strengthening its
equity. The financing package comprised of the following elements:
EUR 73.7 million was provided in the form of secured senior debt from Pohjola
Bank plc, Nordea Bank Finland Plc, Pohjola Bank plc and Sampo Bank plc. The
syndicated loan facility has a maturity of three years and the loan agreement
includes typical financial covenants. Payment of dividend will be conditional
on net financial debt to EBITDA ratio of less than 2.75. These restrictions do
not apply to statutory dividends. Glaston's largest shareholders Oy
G.W.Sohlberg Ab and GWS Trade Oy have also separately agreed not to claim
minority dividends as regulated in Chapter 13 Section 7 of the Finnish
Companies Act.
Ápproximately EUR 6 million was provided by issuing new shares in Glaston and
EUR 4.0 million in junior debt with maturity of three years.
The Board of Directors of Glaston resolved by virtue of the authorization
granted by the Annual General Meeting on 13 April 2010 to conduct a directed
share issue and offered a maximum number of 6.8 million new shares for
subscription against payment to experienced and professional Finnish investors.
The share issue in its entirety was underwritten. Among others, Varma Mutual
Pension Insurance Company ("Varma") and Finnish Industry Investment Ltd.
provided undertakings to the Company to subscribe for the shares.
The subscription price for each share issued in the directed issue is the trade
volume-weighted average price of the Glaston share less 4.9 per cent for a time
period of five days preceding the payment date. New shares issued in the
directed share issue will be registered in the Trade Register on or about 4
March 2011 and trading in the Main market of NASDAQ OMX Helsinki Ltd will
commence on or about 7 March 2011.
Glaston also entered into agreement with Varma and Finnish Industry Investment
Ltd. on conversion of Glaston Convertible Loan held by them into shares in
Glaston with the conversion rate EUR 1.30 determined in the terms and
conditions of the Convertible Loan. Thus the amount of the Convertible Loan
held by Varma, EUR 9.0 million, and Finnish Industry Investment, EUR 6.25
million, in total EUR 15.25 million, was converted into 11,730,768 shares in
Glaston. To compensate Varma and Finnish Industry Investment Ltd. for the
difference of conversion rate and recent share price trading level, Glaston
agreed to provide the investors 21 cents per share as additional consideration.
This offer will be extended to all Convertible Loan investors. The total issued
amount of Convertible Loan was EUR 30 million.
The converted amount of the convertible bond was recorded in reserve for
invested unrestricted equity. In accordance with IAS 32, the compensation to
Varma and Finnish Industry Investment Ltd related to the conversion of the bond
will result in approximately EUR 2.5 million financial expense. However, the
expense has no effect on Glaston's equity.
The Board of Directors intends to propose the Annual General Meeting to be held
on 5 April 2011 to authorise the Board of Directors to issue new shares. As a
part of contemplated authorisation, the new shares may be issued without
payment for the purpose of aforementioned compensation for the Convertible Loan
investors. Glaston's largest shareholders Oy G.W.Sohlberg Ab and GWS Trade Oy
have separately agreed that they will support the proposal of the share issue
without payment at the Annual General Meeting.
Uncertainties and risks in the near future
During the last couple of years, the glass processing market has fundamentally
changed, with the focus of activity shifting to emerging market areas. Led by
China, the Asian market is growing strongly, as is the South American market,
with Brazil acting as the engine of growth. Glaston has strengthened its
presence in these markets. The shift of the focus of business activity to the
emerging markets requires the management of risks associated with these areas.
These include, for example, political and economic instability as well as
issues relating to product rights.
In North America and in Europe, the market has developed unevenly, with
substantial differences between areas. Quiet markets have led to overcapacity
and, in addition, customers' difficulties relating to finance arrangements may
further restrict customers' investment opportunities. In certain markets
uncertainty is still evident and the risk of the postponement of orders and of
the cancellation of orders already confirmed still exists, if perhaps on a
diminished level.
The underlying nature of the sector is expected to remain unchanged, however,
so development in the coming years is expected to be positive compared with
2010. If the recovery of the sector is delayed further or slows, this will have
a negative effect on Glaston's result. The shift of the geographical focus of
activity to areas of higher economic growth will, however, dampen the economic
effects of a possibly slower recovery in Western Europe.
Glaston's 2010 result includes an impairment loss on goodwill of EUR 5.8
million. If the recovery of the sector is delayed, it is possible that
Glaston's recoverable amounts will, despite the savings arising from efficiency
measures, be insufficient to cover the carrying amounts of assets, particularly
goodwill. If this happens, it will be necessary to recognise an impairment
loss, which, when implemented, will weaken the result and equity.
General business risks and risk management are outlined in more detail in
Glaston's 2010 Annual Report 2010 and on the company's website www.glaston.net.
Board of Directors' proposal on the distribution of profits
The distributable funds of Glaston Corporation, the parent of Glaston Group,
are EUR 43,370,581, of which EUR 4,370,565 represents the loss for the
financial year.
The Board of Directors proposes to the Annual General Meeting that no dividend
be distributed from the result for the year nor from retained earnings. EUR
43,370,581 will be left in distributable funds.
Outlook
A modest recovery in Glaston's market is expected during 2011. In Asia and
particularly in China, demand is expected to grow strongly. In South America,
demand was on a high level in 2010 and this positive development is expected to
continue. In the North American market, cautious signs of recovery were evident
in the final quarter of 2010, and modest growth in demand is expected in 2011.
In Europe and the Middle East, the market continues to be challenging.
The cornerstones of Glaston's operations remain the architectural glass segment
and the solar energy market. The automotive industry, which has recovered
rapidly, also presents growth opportunities. Asia, particularly China, has a
strongly developing solar energy market and we expect demand for solar energy
projects to be robust. We will continue purposefully to strengthen our position
in China and elsewhere in Asia.
In 2011 the business development priorities will be profitability improvement
and the completion of adjustment measures, whose positive effect on the result
will be realised towards the end of the year.
We expect that 2011 net sales will be at least at the 2010 level and that the
operating result will return to a positive trend.
Helsinki, 1 March 2011
Glaston Corporation
Board of Directors
For further information, please contact:
Arto Metsänen, President and CEO, phone +358 10 500 6100
Tapio Engström, CFO, phone +358 10 500 6419
Glaston Corporation
Glaston Corporation is an international glass technology company and a pioneer
in glass processing technology. Its product range and service network are the
widest in the industry. Glaston's notable brands are Bavelloni in
pre-processing machines and tools, Tamglass and Uniglass in safety glass
machines, and Albat+Wirsam in glass industry software.
Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki, Small Cap List.
Distribution: NASDAQ OMX, KEY media, www.glaston.net
GLASTON CORPORATION
CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 31 DECEMBER 2010
These condensed financial statements are audited. Auditor's report has been
given on 1 March, 2011. Quarterly information and interim reports are not
audited.
As a result of rounding differences, the figures presented in the tables may
not add up to the total.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 31.12.2010 31.12.2009
Assets
Non-current assets
Goodwill 52.6 58.4
Other intangible assets 18.8 19.7
Property, plant and equipment 19.5 24.7
Investments in joint ventures and associates 0.0 0.4
Available-for-sale assets 0.3 0.3
Loan receivables 4.5 5.9
Deferred tax assets 8.9 8.5
-------------------------------------------------------------------------------
Total non-current assets 104.6 117.9
Current assets
Inventories 27.9 37.4
Receivables
Trade and other receivables 43.1 52.2
Assets for current tax 0.8 3.6
-------------------------------------------------------------------------------
Total receivables 43.9 55.8
Cash equivalents 15.7 15.6
Assets held for sale 2.8 -
Total current assets 90.3 108.8
-------------------------------------------------------------------------------
Total assets 194.9 226.7
31.12.2010 31.12.2009
Equity and liabilities
Equity
Share capital 12.7 12.7
Share premium account 25.3 25.3
Other reserves 0.0 0.0
Reserve for invested unrestricted equity 0.1 0.2
Treasury shares -3.3 -3.5
Fair value reserve 0.0 0.0
Retained earnings and exchange differences 36.3 87.9
Net result attributable to owners of the parent -31.9 -53.6
-------------------------------------------------------------------------------
Equity attributable to owners of the parent 39.1 69.0
Non-controlling interest 0.3 0.3
-------------------------------------------------------------------------------
Total equity 39.5 69.4
-------------------------------------------------------------------------------
Non-current liabilities
Convertible bond 26.2 20.1
Non-current interest-bearing liabilities 0.0 4.7
Non-current interest-free liabilities and provisions 4.3 7.3
Deferred tax liabilities 4.7 6.6
-------------------------------------------------------------------------------
Total non-current liabilities 35.2 38.8
Current liabilities
Current interest-bearing liabilities 61.4 54.4
Current provisions 7.0 9.8
Trade and other payables 48.2 53.2
Liabilities for current tax 0.8 1.0
Liabilities related to non-current assets held for sale 2.8 -
Total current liabilities 120.2 118.5
-------------------------------------------------------------------------------
Total liabilities 155.4 157.3
-------------------------------------------------------------------------------
Total equity and liabilities 194.9 226.7
CONDENSED CONSOLIDATED INCOME STATEMENT
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
Net sales 37.7 35.8 149.4 151.8
Other operating income 0.4 0.2 0.9 1.1
Expenses -47.0 -50.6 -160.3 -185.8
Share of associates and joint ventures' result 0.0 -0.5 -0.4 -1.5
Depreciation, amortization and impairment -8.6 -13.3 -14.5 -20.9
--------------------------------------------------------------------------------
Operating profit / loss -17.6 -28.4 -24.9 -55.3
Financial items, net -1.0 -0.7 -6.9 -2.3
--------------------------------------------------------------------------------
Result before income taxes -18.5 -29.0 -31.8 -57.6
Income taxes -0.2 2.2 -0.2 4.0
--------------------------------------------------------------------------------
Profit / loss for the period -18.8 -26.8 -32.0 -53.6
--------------------------------------------------------------------------------
Attributable to:
Owners of the parent -18.7 -26.8 -31.9 -53.6
Non-controlling interest 0.0 0.0 0.0 0.0
Total -18.8 -26.8 -32.0 -53.6
--------------------------------------------------------------------------------
Earnings per share, EUR, basic -0.24 -0.34 -0.41 -0.68
Earnings per share, EUR, diluted -0.24 -0.34 -0.41 -0.68
Operating profit / loss, as % of net sales -46.7 -79.2 -16.7 -36.4
Profit / loss for the period, as % of net sales -49.8 -74.9 -21.4 -35.3
Non-recurring items included in operating profit -13.7 -17.3 -13.7 -21.6
/ loss
Operating profit / loss, non-recurring items -3.9 -11.0 -11.3 -33.6
excluded
Operating profit / loss, non-recurring items -10.5 -30.8 -7.5 -22.2
excluded, as % of net sales
CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME
10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
Profit / loss for the period -18.8 -26.8 -32.0 -53.6
Other comprehensive income
Total exchange differences on translating foreign 0.3 0.0 1.0 -0.7
operations
Fair value changes of available-for-sale assets 0.0 0.0 0.0 0.0
Income tax on other comprehensive income 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Other comprehensive income for the reporting 0.3 0.0 1.0 -0.7
period, net of tax
--------------------------------------------------------------------------------
Total comprehensive income for the reporting -18.4 -26.9 -30.9 -54.4
period
--------------------------------------------------------------------------------
Attributable to
Owners of the parent -18.4 -26.8 -30.9 -54.3
Non-controlling interest 0.0 -0.1 0.0 0.0
Total comprehensive income for the reporting -18.4 -26.9 -30.9 -54.4
period
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million 1-12/2010 1-12/2009
Cash flows from operating activities
Cash flow before change in net working capital -13.7 -29.8
Change in net working capital 2.7 28.6
--------------------------------------------------------------------------------
Net cash flow from operating activities -11.0 -1.2
Cash flow from investing activities
Business combinations 0.0 -0.5
Other purchases of non-current assets -4.4 -6.5
Investment in joint ventures -0.2 -2.0
Proceeds from sale of joint ventures 0.4 -
Other - 0.1
Proceeds from sale of other non-current assets 0.7 1.4
--------------------------------------------------------------------------------
Net cash flow from investing activities -3.5 -7.5
--------------------------------------------------------------------------------
Cash flow before financing -14.5 -8.7
Cash flow from financing activities
Increase in non-current liabilities 6.2 23.8
Decrease in non-current liabilities -1.2 -11.9
Changes in loan receivables (increase - / decrease +) -0.1 -
Changes in short-term liabilities (increase + / decrease 5.5 3.2
-)
Dividends paid - -3.9
Other financing 1.4 1.2
--------------------------------------------------------------------------------
Net cash flow from financing activities 11.9 12.3
--------------------------------------------------------------------------------
Effect of exchange rate changes 2.7 0.4
Net change in cash and cash equivalents 0.1 4.0
Cash and cash equivalents at the beginning of period 15.6 11.5
Cash and cash equivalents at the end of period 15.7 15.6
--------------------------------------------------------------------------------
Net change in cash and cash equivalents 0.1 4.0
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million Share Share Other Reserve for Treasur Fair
capita premium reserve invested y value
l account s unrestr. equity shares reserve
---------------------------------------------------------------
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 in - - - 0.0 0.0 -
treasury shares
--------------------------------------------------------------------------------
Equity at 31 12.7 25.3 0.0 0.2 -3.5 0.0
December, 2009
--------------------------------------------------------------------------------
Share Share Other Reserve for Treasur Fair
capita premium reserve invested y value
l account s unrestr. equity shares reserve
---------------------------------------------------------------
Equity at 1 12.7 25.3 0.0 0.2 -3.5 0.0
January, 2010
--------------------------------------------------------------------------------
Total - - 0.0 - - 0.0
comprehensive
income for the
period
--------------------------------------------------------------------------------
Share-based - - - -0.1 0.2 -
incentive plan
--------------------------------------------------------------------------------
Share-based - - - 0.0 - -
incentive plan,
tax effect
--------------------------------------------------------------------------------
Equity at 31 12.7 25.3 0.0 0.1 -3.3 0.0
December, 2010
--------------------------------------------------------------------------------
Retained Exchange Equity attributable Non-contro Total earnings differenc to owners of the lling equity
es parent interest
-------------------------------------------------------------
Equity at 1 89.6 -0.5 123.7 0.0 123.8
January, 2009
--------------------------------------------------------------------------------
Total -53.6 -0.7 -54.3 0.0 -54.4
comprehensive
income for the
period
--------------------------------------------------------------------------------
Other changes in 0.1 - 0.1 0.3 0.4
non-controlling
interest
--------------------------------------------------------------------------------
Other changes in - - - - -
treasury shares
--------------------------------------------------------------------------------
Other changes 0.0 - - - -
--------------------------------------------------------------------------------
Share-based 0.1 - 0.1 - 0.1
incentive plan
--------------------------------------------------------------------------------
Share-based 0.0 - 0.0 - 0.0
incentive plan,
tax effect
--------------------------------------------------------------------------------
Equity part of 3.4 - 3.4 - 3.4
convertible bond
--------------------------------------------------------------------------------
Reversal of unpaid 0.0 - 0.0 - 0.0
dividends
--------------------------------------------------------------------------------
Dividends paid -3.9 - -3.9 - -3.9
--------------------------------------------------------------------------------
Equity at 31 35.6 -1.3 69.0 0.3 69.4
December, 2009
--------------------------------------------------------------------------------
Retained Exchange Equity attributable Non-contro Total
earnings differenc to owners of the lling equity
es parent interest
-------------------------------------------------------------
Equity at 1 35.6 -1.3 69.0 0.3 69.4
January, 2010
--------------------------------------------------------------------------------
Total -31.9 1.0 -30.9 0.0 -30.9
comprehensive
income for the
period
--------------------------------------------------------------------------------
Share-based 0.2 - 0.3 - 0.3
incentive plan
--------------------------------------------------------------------------------
Share-based -0.1 - 0.0 - 0.0
incentive plan,
tax effect
--------------------------------------------------------------------------------
Equity part of 0.8 - 0.8 - 0.8
convertible bond
--------------------------------------------------------------------------------
Equity at 31 4.6 -0.3 39.1 0.3 39.5
December, 2010
--------------------------------------------------------------------------------
KEY RATIOS
31.12.2010 31.12.2009
EBITDA, as % of net sales (1 -6.9 -22.7
Operating profit / loss (EBIT), as % of net sales -16.7 -36.4
Net result, as % of net sales -21.4 -35.3
Gross capital expenditure, EUR million 4.6 8.5
Gross capital expenditure, as % of net sales 3.1 5.6
Equity ratio, % 22.1 33.1
Gearing, % 228.6 114.3
Net gearing, % 189.0 91.9
Net interest-bearing debt, EUR million 74.6 63.7
Capital employed, end of period, EUR million 129.7 148.6
Return on equity, % -58.7 -55.5
Return on capital employed, % -19.0 -32.1
Number of personnel, average 1,028 1,344
Number of personnel, end of period 957 1,160
(1 EBITDA = Operating profit / loss + depreciation, amortization and impairment.
PER SHARE DATA
31.12.2010 31.12.2009
Number of shares, end of period, treasury shares 78,561 78,511
excluded (1,000)
Number of shares, average, treasury shares excluded 78,527 78,522
(1,000)
Number of shares, dilution effect of the convertible 100,880 89,143
bond taken into account, average, treasury shares
excluded (1,000)
EPS, basic, EUR -0.41 -0.68
EPS, diluted, EUR -0.41 -0.68
Equity attributable to owners of the parent per share, 0.50 0.88
EUR
Price per earnings per share (P/E) ratio -2.8 -1.6
Price per equity attributable to owners of the parent 2.27 1.23
per share
Market capitalization, EUR million 88.8 84.8
Share turnover, % (number of shares traded, % of the 19.6 9.0
average number of shares)
Number of shares traded, (1,000) 15,419 7,033
Closing price of the share, EUR 1.13 1.08
Highest quoted price, EUR 1.65 1.44
Lowest quoted price, EUR 0.80 0.92
Volume-weighted average quoted price, EUR 1.17 1.18
DEFINITIONS OF KEY RATIOS
Financial ratios
EBITDA = Profit / loss before depreciation, amortization and impairment, share
of joint ventures' and associates' results included
Operating result (EBIT)= Profit / loss after depreciation, amortization and
impairment, share of joint ventures' and associates' results included
Operating result (EBIT) excluding non-recurring items = Profit / loss after
depreciation, amortization and impairment, share of joint ventures' and
associates' results included, non-recurring items excluded
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)
Non-recurring items = mainly items arising from restructuring and structural
changes. They can include expenses arising from personnel reduction, product
portfolio rationalization, changes in production structure and from reduction
of offices. Impairment loss of goodwill is also included in non-recurring
items. Non-recurring items are recognized in profit or loss in the income or
expense category where they belong by their nature and they are included in
operating result. In its key ratios Glaston presents also operating result
excluding non-recurring items. If a non-recurring expense is reversed for
example due to changes in circumstances, the reversal is also included in
non-recurring items. In addition, exceptionally large gains or losses from
disposals of property, plant and equipment and intangible assets as well as
capital gains or losses arising from group restructuring are included in
non-recurring items.
Per share data
Earnings per share (EPS) = Net result attributable to owners of the parent /
Adjusted average number of shares
Diluted earnings per share = Net result attributable to owners of the parent
adjusted with the result effect of convertible bond / Adjusted average number
of shares, dilution effect of the convertible bond taken into account
Equity attributable to owners of the parent per share = Equity attributable to
owners of the parent at end of the period / Adjusted number of shares at end of
the period
Average trading price = Shares traded (EUR) / Shares traded (volume)
Price per earnings per share (P/E) = Share price at end of the period /
Earnings per share (EPS)
Price per equity per share = Share price at period end / Equity attributable to
owners of the parent per share
Share turnover = The proportion of number of shares traded during the period to
average number of shares
Market capitalization = Number of shares at end of the period x share price at
end of the period
Number of shares at period end = Number of issued shares - treasury shares
ACCOUNTING POLICIES
The consolidated financial statements of Glaston Group are prepared in
accordance with International Financial Reporting Standards (IFRS), including
International Accounting Standards (IAS) and Interpretations issued by the
International Financial Reporting Interpretations Committee (SIC and IFRIC).
International Financial Reporting Standards are standards and their
interpretations adopted in accordance with the procedure laid down in
regulation (EC) No 1606/2002 of the European Parliament and of the Council. The
Notes to the Financial Statements are also in accordance with the Finnish
Accounting Act and Ordinance and the Finnish Companies' Act.
These condensed consolidated financial statements have been prepared in
accordance with International Financial Reporting Standard IAS 34 Interim
Reporting as approved by the European Union. They do not include all the
information required for full annual financial statements. The accounting
principles applied in these condensed consolidated financial statements are the
same as those applied by Glaston in its consolidated financial statements as at
and for the year ended 31 December, 2009, with the exception of the following
new or revised or amended standards and interpretations which have been applied
from 1 January, 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 has applied 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 has been done. In addition, all consideration transferred in the
business combination is 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 will be measured at fair value or as the non-controlling interest's
proportionate share of the acquiree's net assets. This choice affects 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 will result
in the non-controlling interest having a deficit balance.
The change of IAS 36 Impairment of Assets included in the annual improvements
of IFRSs changed 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 be larger than an operating segment before it is aggregated to be a part
of a reportable segment.
Other new or amended standards or interpretations applicable from 1 January,
2010 are not material for Glaston Group.
Glaston will apply the following new or revised or amended standards and
interpretations from 1 January, 2011:
- IAS 24 (revised) Related Party Disclosures
- Amendments to IAS 32 Financial Instruments: Presentation - Classification of
Rights Issues
- Amendment to IFRIC 14 IAS 19 Prepayments of a Minimum Funding Requirement
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
IAS 24 (revised) Related Party Disclosures standard shall be applied for annual
periods beginning on or after 1 January, 2011. The application is
retrospective.
Amendments to IAS 32 Financial Instruments: Presentation - Classification of
Rights Issues shall be applied for annual periods beginning on or after 1
February, 2010.
Amendment to IFRIC 14 IAS 19 Prepayments of a Minimum Funding Requirement shall
be applied for annual periods beginning on or after 1 January, 2011. The
application is retrospective.
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments shall be
applied for annual periods beginning on or after 1 July, 2010.
In addition, Glaston will apply the annual Improvements to IFRSs issued in May
2010. These will affect mainly the disclosure information in Glaston's
consolidated financial statements. These improvements shall be mainly applied
for annual periods beginning on or after 1 January, 2011.
The change of IFRS 3 Business Combinations included in the annual improvements
of IFRSs changes the measurement of non-controlling interest. For each business
combination it is possible to choose, whether the non-controlling interest will
be measured at fair value or as the non-controlling interest's proportionate
share of the acquiree's net assets. This choice affects the goodwill arising
from the business combination. In accordance with the improvement, the choice
is possible only for the non-controlling interests in the acquiree that are
present ownership interests and entitle their holders to a proportionate share
of the entity's net assets in the event of liquidation. All other components of
non-controlling interests, such as options, are measured at their
acquisition-date fair value.
Other new or amended standards or interpretations applicable from 1 January,
2011 are not material for Glaston Group.
Glaston will apply the following new or revised or amended standards and
interpretations from 1 January, 2012, if EU has approved them:
- Amendment to IFRS 7 Financial Instruments: Disclosures - Transfers of
Financial Assets
The amendment shall be applied for annual periods beginning on or after 1 July,
2011. The amendment increases the disclosure requirements of transfers and
derecognition of financial assets. The amendment does not have material effect
on Glaston's consolidated financial statements.
Glaston will apply the following new or revised or amended standards and
interpretations from 1 January, 2013, if EU has approved them:
- IFRS 9 Financial Instruments, Part 1
- Amendment to IFRS 9 Financial Instruments - Additions to Accounting for
Financial Liabilities
The standards shall be applied for annual periods beginning on or after 1 July,
2013. IFRS 9 shall be applied retrospectively.
In accordance with the new IFRS 9 standard, financial assets, which are debt
instruments, are measured after initial measurement at either amortized cost or
fair value on the basis of the entity's business model for managing the
financial assets and the contractual cash flows characteristics of the
financial asset. Financial assets, which are equity instruments, are measured
at fair value after initial measurement. Fair value changes of equity
instruments are recognized in other comprehensive income, if the entity has
elected to present the changes at fair value through other comprehensive
income.
Financial liabilities are subsequently measured at amortized cost or at fair
value through profit or loss. If the entity recognizes the liability at fair
value through profit or loss, the fair value changes arising from changes in
the liability's credit risk are recognized in other comprehensive income and
they will not be reclassified to profit or loss.
The new IFRS 9 standard is estimated to not to have any material effect of
Glaston's financial statements.
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 10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
--------------------------------------------------------------------------------
External sales 23.5 21.8 94.9 92.0
Intersegment sales 0.1 0.1 0.1 0.6
--------------------------------------------------------------------------------
Net sales 23.6 21.9 95.0 92.5
EBIT excluding non-recurring items -2.7 -7.7 -8.5 -22.4
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items -11.5 -35.0 -8.9 -24.2
Non-recurring items -12.0 -12.1 -12.0 -15.9
--------------------------------------------------------------------------------
EBIT -14.7 -19.8 -20.4 -38.3
EBIT-% -62.1 -90.5 -21.5 -41.4
Net working capital 24.2 34.4
--------------------------------------------------------------------------------
Number of personnel, average 616 778
Number of personnel, end of period 577 688
--------------------------------------------------------------------------------
Services
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
--------------------------------------------------------------------------------
External sales 8.3 7.9 30.7 35.9
Intersegment sales 0.5 0.4 1.4 1.9
--------------------------------------------------------------------------------
Net sales 8.8 8.2 32.0 37.7
EBIT excluding non-recurring items 1.2 -0.5 3.3 -2.4
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 13.3 -5.5 10.1 -6.4
Non-recurring items -2.2 -2.5 -2.2 -2.8
--------------------------------------------------------------------------------
EBIT -1.0 -2.9 1.1 -5.2
EBIT-% -11.3 -35.7 3.4 -13.7
Net working capital 6.9 9.8
--------------------------------------------------------------------------------
Number of personnel, average 171 291
Number of personnel, end of period 149 215
--------------------------------------------------------------------------------
Software Solutions
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
--------------------------------------------------------------------------------
External sales 5.8 6.3 23.9 23.9
Intersegment sales -0.1 0.0 0.0 0.0
--------------------------------------------------------------------------------
Net sales 5.8 6.3 23.9 23.9
Share of associates' and joint ventures' results - - 0.0 0.0
EBIT excluding non-recurring items -0.3 -0.2 1.1 0.4
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items -5.9 -2.9 4.5 1.7
Non-recurring items 0.5 -1.5 0.5 -1.7
--------------------------------------------------------------------------------
EBIT 0.1 -1.6 1.5 -1.3
EBIT-% 2.2 -26.2 6.4 -5.5
Net working capital 4.5 5.8
--------------------------------------------------------------------------------
Number of personnel, average 219 248
Number of personnel, end of period 214 234
--------------------------------------------------------------------------------
Glaston Group
EUR million
Net sales 10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
--------------------------------------------------------------------------------
Machines 23.6 21.9 95.0 92.5
Services 8.8 8.2 32.0 37.7
Software Solutions 5.8 6.3 23.9 23.9
Other and intersegment sales -0.5 -0.6 -1.5 -2.4
Glaston Group total 37.7 35.8 149.4 151.8
--------------------------------------------------------------------------------
EBIT 10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
--------------------------------------------------------------------------------
Machines -2.7 -7.7 -8.5 -22.4
Services 1.2 -0.5 3.3 -2.4
Software Solutions -0.3 -0.2 1.1 0.4
Other and eliminations -2.1 -2.7 -7.1 -9.3
EBIT excluding non-recurring items -3.9 -11.0 -11.3 -33.6
--------------------------------------------------------------------------------
Non-recurring items -13.7 -17.3 -13.7 -21.6
EBIT -17.6 -28.4 -24.9 -55.3
--------------------------------------------------------------------------------
Net financial items -1.0 -0.7 -6.9 -2.3
--------------------------------------------------------------------------------
Result before income taxes and non-controlling -18.5 -29.0 -31.8 -57.6
interest
Income taxes -0.2 2.2 -0.2 4.0
Result -18.8 -26.8 -32.0 -53.6
--------------------------------------------------------------------------------
Number of personnel, average 1,028 1,344
Number of personnel, end of period 957 1,160
--------------------------------------------------------------------------------
The non-recurring items of 2010 consist of impairment losses and reversals of
impairment losses recognized of goodwill and intangible and tangible assets
(net amount EUR -6.4 million), personnel and other expenses arising from
restructuring program (EUR -5.5 million) as well as impairment losses of
inventory arising from restructuring related product portfolio changes (EUR
-2.2 million). In addition, the non-recurring items include reversals of
provisions made in previous years (EUR 0.4 million).
The non-recurring items of 2009 consist mainly of impairment losses recognized
of goodwill and intangible assets (EUR 10.9 million), expenses arising from
merging business areas (EUR 3.3 million) and restructuring programs initiated
during the latter part of 2009 (EUR 7.6 million). In addition, the
non-recurring items include reversals of provisions made in 2008 (EUR 1.1
million).
Segment assets 31.12.2010 31.12.2009
-------------------------------------------------
Machines 46.5 58.0
Services 10.1 13.9
Software Solutions 5.2 6.5
Other 0.0 0.2
Total segment assets 61.8 78.7
-------------------------------------------------
Other assets 133.1 147.9
Total assets 194.9 226.7
-------------------------------------------------
Segment liabilities 31.12.2010 31.12.2009
-------------------------------------------------
Machines 22.3 23.7
Services 3.2 4.1
Software Solutions 0.7 0.7
Other 0.3 0.2
Total segment liabilities 26.5 28.7
-------------------------------------------------
Other liabilities 129.0 128.6
Total liabilities 155.4 157.3
-------------------------------------------------
Net working capital 31.12.2010 31.12.2009
-------------------------------------------------
Machines 24.2 34.4
Services 6.9 9.8
Software Solutions 4.5 5.8
Other -0.2 0.0
Total Glaston Group 35.4 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 1-12/2010 1-12/2009
-----------------------------------------
Machines 96.2 98.8
Services 29.8 32.6
Software Solutions 22.3 20.2
Total Glaston Group 148.3 151.5
-----------------------------------------
Net sales by geographical areas
EUR million 1-12/2010 1-12/2009
-----------------------------------------
EMEA 75.3 90.7
Asia 35.2 24.7
America 39.0 36.4
Total 149.4 151.8
-----------------------------------------
QUARTERLY NET SALES, OPERATING RESULT, ORDER INTAKE AND ORDER BOOK
Machines
EUR million 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
External sales 23.5 18.5 28.5 24.3 21.8 17.2 30.1 22.8
Intersegment sales 0.1 0.0 0.0 0.0 0.1 0.0 -0.3 0.7
--------------------------------------------------------------------------------
Net sales 23.6 18.5 28.5 24.3 21.9 17.3 29.8 23.6
EBIT excluding -2.7 -2.6 -1.7 -1.5 -7.7 -4.9 -4.6 -5.3
non-recurring items
--------------------------------------------------------------------------------
EBIT-%, excl. -11.5 -14.0 -5.9 -6.1 -35.0 -28.2 -15.4 -22.3
non-recurring items
Non-recurring items -12.0 - - - -12.1 - -3.8 -
-------------------------
EBIT -14.7 -2.6 -1.7 -1.5 -19.8 -4.9 -8.4 -5.3
--------------------------------------------------------------------------------
EBIT-% -62.1 -14.0 -5.9 -6.1 -90.5 -28.2 -28.1 -22.3
--------------------------------------------------------------------------------
Services
EUR million 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
External sales 8.3 7.3 7.0 8.0 7.9 8.4 9.2 10.4
Intersegment sales 0.5 0.4 0.2 0.2 0.4 0.7 0.6 0.3
--------------------------------------------------------------------------------
Net sales 8.8 7.8 7.3 8.2 8.2 9.1 9.7 10.7
EBIT excluding 1.2 0.6 0.5 1.0 -0.5 -0.1 -0.2 -1.7
non-recurring items
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring 13.3 7.8 6.6 12.1 -5.5 -1.1 -1.7 -16.0
items
Non-recurring items -2.2 - - - -2.5 - -0.3 -
----------------------------
EBIT -1.0 0.6 0.5 1.0 -2.9 -0.1 -0.4 -1.7
--------------------------------------------------------------------------------
EBIT-% -11.3 7.8 6.6 12.1 -35.6 -1.1 -4.5 -16.0
--------------------------------------------------------------------------------
Software Solutions
EUR million 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
External sales 5.8 6.0 6.0 6.0 6.3 5.8 5.9 6.0
Intersegment sales -0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------Net sales 5.8 6.1 6.0 6.1 6.3 5.8 5.9 6.0
Share of associates' and - 0.0 - - 0.0 0.0 0.0 0.0
joint ventures' results
EBIT excluding -0.3 0.2 0.5 0.7 -0.2 0.5 0.5 -0.4
non-recurring items
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring -5.9 4.0 7.8 11.7 -2.9 7.7 8.7 -6.0
items
Non-recurring items 0.5 - - - -1.5 - -0.3 -
----------------------------
EBIT 0.1 0.2 0.5 0.7 -1.6 0.5 0.2 -0.4
--------------------------------------------------------------------------------
EBIT-% 2.2 4.0 7.8 11.7 -26.2 7.7 4.1 -6.0
--------------------------------------------------------------------------------
Net sales
EUR million 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
Machines 23.6 18.5 28.5 24.3 21.9 17.3 29.8 23.6
Services 8.8 7.8 7.3 8.2 8.2 9.1 9.7 10.7
Software Solutions 5.8 6.1 6.0 6.1 6.3 5.8 5.9 6.0
Other and intersegment -0.5 -0.5 -0.2 -0.2 -0.6 -0.7 -0.2 -1.0
sales
Glaston Group total 37.7 31.9 41.5 38.4 35.8 31.5 45.2 39.2
--------------------------------------------------------------------------------
EBIT
EUR million 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
Machines -2.7 -2.6 -1.7 -1.5 -7.7 -4.9 -4.6 -5.3
Services 1.2 0.6 0.5 1.0 -0.5 -0.1 -0.2 -1.7
Software Solutions -0.3 0.2 0.5 0.7 -0.2 0.5 0.5 -0.4
Other and eliminations -2.1 -1.1 -2.1 -1.9 -2.7 -2.9 -1.9 -1.6
EBIT excluding -3.9 -2.8 -2.8 -1.7 -11.0 -7.4 -6.2 -9.0
non-recurring items
--------------------------------------------------------------------------------
Non-recurring items -13.7 - - - -17.3 - -4.3 -
---------------------------------------------------------
EBIT -17.6 -2.8 -2.8 -1.7 -28.4 -7.4 -10.5 -9.0
--------------------------------------------------------------------------------
Order book 31.12. 30.9. 30.6. 31.3. 31.12. 30.9. 30.6. 31.3.
2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
Machines 37.4 34.7 25.6 32.4 39.8 35.8 30.8 38.2
Services 1.2 1.9 0.9 0.7 1.6 1.6 2.3 4.0
Software Solutions 3.5 4.0 3.7 3.8 4.1 3.5 4.0 3.7
-----------------------
Total Glaston Group 42.1 40.7 30.2 36.9 45.5 40.9 37.1 45.9
--------------------------------------------------------------------------------
Order intake
EUR million 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2010 2010 2010 2010 2009 2009 2009 2009
-----------------------------------------------------------------------
Machines 26.8 25.3 23.8 20.3 30.1 23.0 30.0 15.7
Services 8.0 7.7 7.4 6.7 8.5 7.8 7.6 8.7
Software Solutions 4.8 6.1 5.5 5.9 5.5 4.4 5.2 5.1
Total Glaston Group 39.7 39.0 36.7 32.9 44.1 35.2 42.8 29.5
-----------------------------------------------------------------------
CONTINGENT LIABILITIES
EUR million 31.12.2010 31.12.2009
Mortgages and pledges
On own behalf 274.6 130.8
On behalf of others 0.1 0.0
Guarantees
On own behalf 0.7 0.6
On behalf of others 0.2 0.1
Lease obligations 10.7 13.4
Repurchase obligations 0.2 0.2
Other obligation on own behalf 0.0 -
Capital commitments in relation to interests in joint - 0.7
ventures
Glaston Group has international operations and can be a defendant or plaintiff
in a number of legal proceedings incidental to those operations. The Group does
not expect the outcome of any unmentioned legal proceedings currently pending,
either individually or in the aggregate, to have material adverse effect upon
the Group's consolidated financial position or results of operations.
DERIVATIVE INSTRUMENTS
EUR million 31.12.2010 31.12.2009
Nominal value Fair value Nominal value Fair value
Currency derivatives
Currency forwards 0.4 0.1 2.6 -0.1
Commodity derivatives
Electricity forwards 0.3 0.2 - -
Derivative instruments are used only for hedging purposes. Nominalvalues of
derivative instruments do not necessarily correspond withthe 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
Changes in property, plant and equipment 1-12/2010 1-12/2009
Carrying amount at beginning of the period 24.7 35.0
--------------------------------------------------------------------------
Additions 0.9 1.2
Disposals -0.4 -6.2
Depreciation and amortization -3.4 -4.1
Impairment losses and reversals of impairment losses -1.2 -1.2
Reclassification and other changes -1.5 -0.1
Exchange differences 0.5 0.0
Carrying amount at end of the period 19.5 24.7
--------------------------------------------------------------------------
At the end of 2010, Glaston's contractual commitments for the acquisition of
property, plant and equipment were EUR 0.0 million. At the end of 2009, Glaston
did not have of contractual commitments for the acquisition of property, plant
and equipment.
SHAREHOLDER INFORMATION
Largest shareholders 31 December, 2010
Number of % of
shares shares
Shareholder and votes
GWS Trade Oy 13,446,700 28.02%
Oy G.W.Sohlberg Ab 12,819,400 26.71%
Sumelius Birgit 3,644,200 7.59%
Fondita Nordic Micro Cap Investment Fund 2,350,000 4.90%
Oy Investsum Ab 1,820,000 3.79%
Suutarinen Helena Estate 1,802,400 3.76%
Von Christierson Charlie 1,600,000 3.33%
Sumelius Bjarne Henning 1,225,936 2.55%
Sumelius-Koljonen Barbro 1,206,375 2.51%
Sumelius-Fogelholm Birgitta Christin 1,014,000 2.11%
Nordea Pro Finland Fund 900,000 1.88%
Sumelius Bertil Christer 803,800 1.67%
Huber Karin 800,800 1.67%
Nordea Life Assurance Finland Ltd 800,000 1.67%
Investment Fund Aktia Capital 734,574 1.53%
Evli Alexander Management Oy 658,582 1.37%
Fontell Niilo Armas 624,700 1.30%
Pihkala-Vlassis Anna Marja 615,520 1.28%
Oy Cacava Ab 600,000 1.25%
Fennia Life Insurance Company Ltd. 525,000 1.09%
--------------------------------------------------------------------------------
Total 20 largest shareholders 47,991,987 60.48%
Other shareholders 31,282,813 39.42%
Not in the book-entry securities system (in joint 75,200 0.09%
account)
--------------------------------------------------------------------------------
Total 79,350,000 100.00%
--------------------------------------------------------------------------------
Treasury shares -788,582 0.99%
---------------------------------------------------- -----------
Total excluding treasury shares 78,561,418
-----------------
Ownership distribution 31 December, 2010
Shares % of shares and
total votes
Corporations 32,613,782 41.1%
Financial and insurance corporations 6,366,564 8.0%
Non-profit institutions 1,413,376 1.8%
Households 33,877,017 42.7%
Foreign countries 4,029,568 5.1%
General government 104,200 0.1%
--------------------------------------------------------------------------------
Total 78,404,507 98.8%
Nominee registered 870,293 1.1%
Total 79,274,800 99.9%
--------------------------------------------------------------------------------
Not in the book-entry securities system (in 75,200 0.1%
joint account)
Total 79,350,000 100.0%
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
Glaston Group's related parties include the parent, subsidiaries, associates
and joint ventures. Related parties also include the members of the Board of
Directors and the Group's Executive Management Group, the CEO and their family
members.
Glaston follows the same commercial terms in transactions with associates and
joint ventures and other related parties as with third parties. During the
review period Glaston's related party transactions included leasing of premises
to a joint venture. In addition, the Group has leased premises from companies
owned by individuals belonging to the management. The lease payments were in
January - December EUR 0.6 (0.6) million. During the review period there were
no 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”.
Management remuneration
Remuneration of the Board of Directors
2010 2009
EUR annual meeting annual meeting
fee fee fee fee
Andreas Tallberg, Chairman of the Board 40,000 5,600 40,000 8,000
of Directors
Christer Sumelius, Deputy Chairman of 30,000 3,000 30,000 5,000
the Board of Directors
Claus von Bonsdorff 20,000 3,500 20,000 5,000
Klaus Cawén 20,000 3,000 20,000 5,000
Carl-Johan Rosenbröijer 20,000 3,500 20,000 5,000
Jan Lång 20,000 3,500 20,000 4,500
Teuvo Salminen (* 15,000 500 - -
Mikael Mäkinen (** - - 5,000 1,000
Total 165,000 22,600 155,000 33,500
--------------------------------------------------------------------------------
(* Member of the Board of Directors from 14 April, 2010(** Member of the Board
of Directors from 11 March, 2008 until 17 March, 2009
Remuneration of the Executive Management Group
2010 2009
EUR
CEO Arto Metsänen (*
Salaries 316,920 105,580
Share-based incentive plans, settled in cash 70,312 -
Share-based incentive plans, settled in shares, value of 65,500 -
shares
--------------------------------------------------------------------------------
Total 452,732 105,580
--------------------------------------------------------------------------------
Fringe benefits 19,080 6,420
--------------------------------------------------------------------------------
Total 471,812 112,000
--------------------------------------------------------------------------------
Compulsory pension payments (Finnish TyEL or similar plan) 54,768 6,048
Voluntary pension payments 61,844 -
(* from 1 September, 2009
Other members of the Executive Management Group
Salaries 1,140,288 1,155,624
Compensations for termination of employment 327,161 425,036
Bonuses 44,819 124,322
--------------------------------------------------------------------------------
Total 1,512,268 1,704,982
--------------------------------------------------------------------------------
Fringe benefits 81,058 74,573
--------------------------------------------------------------------------------
Total 1,593,326 1,779,555
--------------------------------------------------------------------------------
Compulsory pension payments (Finnish TyEL or similar plan) 163,143 132,802
Voluntary pension payments 20,515 3,000
Share-based payments
The Board of Directors of Glaston Corporation decided in June, 2010, on 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 criterion 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 0.5
(0.3) 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. INTERPANE Glass Oy was
Glaston's joint venture during 31 March, 2009 - 9 April, 2010. Glaston did not
have transactions with the associate.
Transactions with joint ventures and joint venture balances
2010 (* 2009
Sales to joint venture - 12
Rental income from joint venture 96 276
Interest income from joint venture 104 295
Other financial expenses -3,300 -
(* For the period 1 January - 31 March, 2010
2010 2009
Non-current receivables - 5,935
Current receivables - 1,218
Current liabilities - 87
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