Strategy, Financial Targets and Non-Financial Targets

Glaston’s Board of Directors has approved a revised strategy with key objectives for 2021–2025. The key objectives are clearly improved organic growth and profitability, based on Glaston’s own strategic initiatives and the expected market growth.

Glaston’s addressable glass processing equipment market is expected to grow by more than 5% annually, on average, during the strategy period, and Glaston’s ambition is to clearly exceed this market growth. Strategic must-win development initiatives securing net sales growth and improved profitability have been identified in all Glaston’s business areas and the services business. These initiatives are supported by Group-wide cornerstone initiatives that target improved commercial and operational excellence.

Glaston’s core technologies and lifecycle solutions continue to be at the center of its strategy and Glaston aims to take market share in all its business areas. As the frontrunner in its industry, Glaston plans to increase its investments in innovation and development. Glaston is also continuing its commitment to leading the industry’s digital transformation. Profitability improvement is supported by net sales growth, an optimal product offering, as well as productivity improvements.

Along with its strategy, Glaston has set a new vision, which is to ‘lead the global glass processing industry forward with innovative technologies and lifecycle solutions’. The company’s purpose continues to be ‘build a better tomorrow through safer, smarter and more energy-efficient glass solutions’.

As glass processing technologies continue to be a fragmented industry, Glaston is maintaining an interest in participating in industry consolidation.

Listen to CEO Anders Dahlblom’s presentation at the CMD.

Link to CMD recordings and materials.

Glaston’s new financial targets for the strategy period 2021–2025 are:

Annual average net sales growth (CAGR) clearly exceeding the addressable equipment market growth of more than 5% (1
Comparable operating margin (EBITA) of 10% at the end of the strategy period (2
Comparable return on capital employed (ROCE) of 16% at the end of the strategy period (3

As glass processing technologies continue to be a fragmented industry, Glaston is maintaining an interest in participating in industry consolidation.

Addressing the company’s focus on sustainability, in addition to its financial targets, Glaston has set new non-financial strategic targets:

  • Customer satisfaction score (Net Promoter Score, NPS) above 40
  • Group-wide safety target measured as zero lost time accidents (LTA)
  • Employee Engagement target above 75 (out of 100)
  • Glaston’s CO2 emissions (Scope 1 + 2)(4 in relation to net sales down by 50% from the 2020 level. In 2020, greenhouse gas emissions were 2,777 tons of CO2 with net sales of EUR 170.1 million.
1) Glaston estimate, in euros. Glaston’s addressable equipment market is expected to grow on average by more than 5% annually during 2021–2025. The growth rate of the addressable equipment market is expected to exceed that of the global flat glass market, which is expected to grow 3–4 % annually in 2021−2025, according to Grand View Research, 2021.
Glaston’s product portfolio is targeting those end-use areas of flat glass that are growing faster than average (e.g. insulating glass). The addressable equipment market also includes the customers’ replacement investments after the operational life of machinery. During 2021−2025, replacement investments will be further derived from productivity gains, especially through automation, as well as technology and regulatory changes. Also, inflation explains part of the difference between volume-based and euro-based market estimates.
2) Calculation of key ratio: Comparable EBITA: Operating result before amortization, impairment of intangible assets and purchase price allocation +/- items affecting comparability
3) Calculation of key ratio: Comparable return on capital employed, % (Comparable ROCE): (Profit/loss before taxes + amortization of purchase price allocations +/- items affecting comparability + financial expenses x 100)/Equity + interest-bearing liabilities, average as of 1 January and end of the reporting period
4) Scope 1 emissions: direct greenhouse gas (GHG) emissions that occur from sources that are controlled or owned by Glaston (e.g., emissions associated with fuel oil, diesel and natural gas).
Scope 2 emissions: indirect GHG emissions associated with the purchase of electricity, heat, and cooling.

President & CEO's Review

President & CEO Anders Dahlblom in the January-September 2022 interim report, published on 27 October 2022: 

“Amid increasing uncertainty in the global business environment, the majority of Glaston’s markets continued to perform well in the third quarter, and we set a new clear record in order intake at EUR 86.2 (45.4) million. In particular, one order valued at EUR 31 million significantly contributed to the outcome. That said, even without this order, the quarterly order intake exceeded our historical quarterly average. Third-quarter net sales growth slowed down from previous quarters as component shortages continued to burden our operations. The Insulating Glass and Automotive & Display segments achieved good year-on-year development, whereas Heat Treatment’s net sales declined. Third-quarter comparable EBITA was EUR 2.5 million, with a slightly lower margin than previous quarters as net sales did not reach the same level.

Market activity for the Services business remained positive with daily flow services continuing strong in all regions. As customers’ machine utilization was high and machines were regularly maintained for consistent performance, spare parts saw solid growth. In addition, field services grew as most countries have eased their COVID-19 travel restrictions. Despite continued component shortages and long delivery times, Services net sales in the third quarter increased by 8%.

The supply chain situation remained challenging and a rapid turn for the better is not in sight. Our efforts to manage the situation have increased, which means resources are tied up as additional work and re-planning are carried out on a daily basis ultimately impacting negatively on efficiency and costs.

During the quarter, we continued our good progress with strategy implementation. Taking full advantage of our diverse offering, we were able to close the above-mentioned EUR 31 million deal when our customer decided to expand the existing cooperation within tempering technologies into insulating glass. Our strategic focus to grow our business in China is the foundation of our plan to establish the production of Automotive pre-processing equipment for standard products at the factory in Tianjin. Since the announcement of the plan in June, we have made a strong entry into the Automotive market by securing orders for a standard pre-processing line. With shipments scheduled for 2023, these Automotive lines will be the first to be delivered from Tianjin.

Another strategic step was also taken in the third quarter as we entered the market of tempering technologies for solar panel production in China with the CHF Solar line, a new flat tempering line for solar panel tempering. In September, we had our first win for this new concept as we signed a contract for five lines with a Chinese customer, who already operates close to 20 Glaston insulating glass lines.

During the review period, our markets remained healthy despite the increasing overall global economic uncertainty and this has resulted in a good order intake for the quarter and also the full year 2022.”

Guidance

GLASTON SPECIFIES OUTLOOK FOR 2022

In the third quarter, overall demand in most of Glaston’s markets remained strong, which indicates good development for machines and services businesses for the coming quarters. Glaston began 2022 with a solid order backlog. The strong order intake in January−September further supports Glaston’s 2022 full-year net sales and profitability development. Costs and capital expenditure related to the execution of the updated Group strategy, announced in August 2021, will occur ahead of the effect on revenue growth.

Contrary to the overall strong market demand, inflation, energy cost increases, raw material prices, and the slowdown in economic growth are causing hesitation among some customers in their investment decisions. Supply chain disturbances are expected to continue, which means higher than normal uncertainty over Glaston’s short-term net sales and profitability development. Despite an improved situation, the impact of the COVID-19 pandemic cannot be fully ruled out, especially in China.

Taking into account the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2022 from the levels reported for 2021 and comparable EBITA will increase to EUR 12−14 million. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.

(Previous outlook: Despite the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2022 from the levels reported for 2021 and specifies its outlook for comparable EBITA, which is estimated to increase to EUR 12−15 million. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.)

Previous Outlooks

GLASTON SPECIFIES OUTLOOK FOR 2022
(published in the half-year January-June 2022 report on 4 August 2022)

During the first half of 2022, the overall demand in most of Glaston’s markets remained strong, indicating good development for machines and services businesses. In 2022, Glaston’s net sales and profitability development are supported by the solid order backlog at the beginning of the year as well as healthy order intake during the first half of 2022. Costs and capital expenditure related to the execution of the refined Group strategy, announced in August 2021, will occur ahead of the effect on revenue growth.

Currently, higher than usual uncertainty is related to the development of global economic activity and customers’ investments. The uncertainty is driven by, in particular, the supply chain disturbances, which have become a longer-term challenge, and the Russian attack on Ukraine with its implications for energy and raw material prices. The impacts of the still ongoing COVID-19 pandemic add to the uncertainty, especially in China.

Despite the the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2022 from the levels reported for 2021 and specifies its outlook for comparable EBITA, which is estimated to increase to EUR 12−15 million. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.

(Previous outlook: Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2022 from the levels reported for 2021.)

GLASTON’S OUTLOOK FOR 2022
(published in the January-March Interim Report 27 April 2022)

In 2021, Glaston’s markets saw a strong recovery and growth. This positive development continued in the first quarter of 2022, indicating good development for both machines and services business. Glaston started the year with a 48% higher order backlog than in 2021, which supports Glaston’s net sales and profitability development. In 2022, Glaston is focusing on the execution of its strategy, which will incur costs and capital expenditure ahead of the effect on revenue growth.

Currently, higher than normal uncertainty is related to the development of economic activity and customers’ investments. The uncertainty is driven by several simultaneous factors, such as the supply chain disturbances that have become a longer-term challenge, the Russian invasion of Ukraine with its implications on energy and raw material prices, and the still ongoing COVID-19 pandemic.

Despite the prevailing uncertainties, Glaston Corporation expects market development to continue to be positive and estimates that its net sales and comparable EBITA will improve in 2022 from the levels reported for 2021. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.

GLASTON’S OUTLOOK FOR 2022
(as published in the Financial Statements on 14 February 2022)

In 2021, Glaston’s markets saw a continued recovery and strong growth. We expect positive development to continue in 2022 with good progress for both machines and services business. At the start of 2022, our order backlog was 48% higher than the previous year providing a strong starting point for 2022 and supporting Glaston’s net sales and profitability development. In 2022, Glaston will focus on the execution of its strategy which will incur costs and capital expenditure ahead of the effect on revenue growth. As the COVID-19 pandemic continues and supply chain disturbances have become a longer-term challenge, a higher than normal uncertainty is related to the development of economic activity and customers’ investments.

Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2022 from the levels reported for 2021. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.

GLASTON’S OUTLOOK FOR 2021 REMAINS UNCHANGED
as published in the Q3 2021 interim report, 28 October 2021

From January−September, orders received saw a healthy recovery, indicating positive development for both the machines and services business throughout 2021. As anticipated, after the record high second-quarter order intake, order intake returned to pre-COVID-19 levels in the third quarter.

Glaston expects the heat treatment and insulating glass technology markets to continue to perform well during the rest of the year. In the short term, demand for automotive glass processing technology has shown some recovery but remains volatile due to structural changes and supply chain driven challenges in the market. Generally, there is higher than normal level of uncertainty associated with the outlook due to increased component prices and delivery times.

Based on the high order intake since the fourth quarter of 2020, Glaston Corporation estimates that its net sales in 2021 will improve from the level reported for 2020 and comparable EBITA will increase to EUR 10.5−12.5 million. In 2020, Group net sales totaled EUR 170.1 million and comparable EBITA was EUR 7.7 million.

Glaston’s outlook as published in the January-June 2021 half year financial report published on 5 August 2021:

The strong recovery in orders received in the first half of 2021 indicates positive development for both the machines and services business throughout 2021. The low order backlog at the start of 2021 (20% lower compared to the previous year) impacted Glaston’s January–June 2021 net sales and comparable operating profit. Moreover, the second half of 2021 will benefit from the strong order intake development seen in the first half of the year.

Glaston expects the heat treatment and insulating glass technology markets to continue to perform well. However, order intake for the rest of the year is expected to return to pre-COVID-19 levels after the record high second quarter. In the short-term demand for automotive glass processing technology shows recovery but remains uncertain due to structural changes and supply chain driven challenges in the market. There is higher than normal uncertainty connected to the outlook due to increasing component pricing and delivery times, as well as potential ongoing travel restrictions.

Based on the high order intake since the fourth quarter of 2020, Glaston Corporation estimates that its net sales in 2021 will improve from the level reported for 2020 and specifies its outlook for comparable EBITA, which is estimated to increase to EUR 10.5−12.5 million. In 2020, Group net sales totaled EUR 170.1 million and comparable EBITA was EUR 7.7 million.

(Previous outlook: Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2021 from the levels reported for 2020.)

Glaston’s outlook as published in the Q1 2021 interim report published on 29 April 2021:
The strong recovery in orders received in the fourth quarter of 2020 and its continuation in the first quarter of 2021 indicate positive development for both the machines and services business throughout 2021. Glaston started 2021 with a 20% lower order backlog than the previous year, impacting net sales and comparable operating profit for the first half of 2021. The second half of 2021 will benefit from the order intake recovery. Glaston expects the heat treatment and insulating glass technology markets to perform well, but visibility continues to be shorter than normal due to the COVID-19 pandemic and its implications on economic activity, investments and travel restrictions. The demand for automotive glass processing technology is volatile and uncertain due to COVID-19, structural changes in the market and automotive supply chain disruptions.

Based on the expected continued positive market development, Glaston Corporation estimates, that its net sales and comparable EBITA will improve in 2021 from the levels reported for 2020. In 2020, Group net sales totaled EUR 170.1 million and comparable EBITA was EUR 7.7 million.

GLASTON’S OUTLOOK FOR 2021
published on 9 February 2021:

The strong recovery in orders received towards the end of 2020 and continued positive market environment during the first weeks of 2021 indicate positive development for both the machines and services business throughout 2021. However, reflecting the lower order intake in 2020 compared to the previous year, Glaston will start 2021 with a 20% lower order backlog than the previous year. This will impact on Glaston’s net sales and comparable operating profit for the first half of 2021. The uncertainty related to the pace and extent of market recovery continues to be higher than normal due to the COVID-19 pandemic and its implications on economic activity, investments and travel restrictions.

Based on the expected continued market recovery, Glaston Corporation estimates, that its net sales and comparable EBITA will improve in 2021 from the levels reported for 2020. In 2020, Group net sales totaled EUR 170.1 million and comparable EBITA was EUR 7.7 million.

Business Operations

Glaston Corporation develops, manufactures, sells and services glass processing machines, equipment, and technology to glass processors who provide glass products for different needs. Main customers are glass processors in the architectural glass, automotive and display glass, and solar energy equipment.  

Our operations are divided into three business areas: Glaston Heat Treatment, Glaston Insulating Glass and Glaston Automotive & Display. The business areas also form the company’s three reporting segments in which Services are included.

Glaston Heat Treatment 

Glaston offers a wide and technically advanced range of glass heat treatment machinery, services, upgrades and modernizations as well as spare parts for flat tempering, bending, bending-tempering and laminating lines.

Glaston is the most known tempering line manufacturer in the market and the fastest growing manufacturer of laminating lines. We differentiate ourselves in the market through industry-leading know-how to provide our customers with the most innovative technology and the lowest operating costs.

More information about our products is available in the Offering section.

Glaston Insulating Glass 

In insulating glass technologies, Glaston offers tailor-made and flexible solutions to meet the most demanding customer needs. We have a more than 25 years experience as a leader in «warm edge» technology and inventor of the TPS® spacer system.

Energy efficiency and the need to improve the energy performance of buildings is gaining more importance in the market and drives the demand for insulating glass.

Please click to see our Offering.

Glaston Automotive & Display 

Glaston is the leading supplier for pre-processing solutions for automotive glass with a >40% market share.

We offer standardized and tailor-made solutions for the processing of automotive and display glass from the raw glass to the final product.

In the automotive industry, the use of glass is increasing in the exterior and the interior and new functionalities and glass types like thin glass increase processing complexity and quality requirements.

Research and Development

Glaston is a frontrunner in its field, and known in the glass industry for its technology leadership and high quality. Our position is particularly strong in developing technologically demanding products. Glaston carries out product development in close cooperation with its customers and partners, such as research institutes, universities and other higher education institutions.

The most advanced glass processing machines developed by Glaston have risen to the status of standards in many countries. We hold patents for all of our key solutions.

At the forefront of product develop­ment are new digital and IoT-based products that facilitate the transition to fully automated glass processing.

In 2021, we continued to strongly focus on the development towards fully automated lines in insulating glass and heat treatment technologies, as well as automotive and display technologies. Significant steps towards developing a fully automated tempering line were taken during the early part of 2021 when Glaston completed the first part of the strategically significant FC series tempering machine order.

New glass technologies and glass products providing added value are increas­ingly entering the market, and the energy-saving potential of smart glass products, for example, is boosting demand for them. Glaston provides engineering and consulting services for the production of smart glass and energy glass windows as well as for solar energy applications.

In 2021, Glaston ramped up its research and product development efforts and aligned them with the updated strategy’s cornerstone initiative Innovate with customers to win. The initiative focuses on strengthening Glaston’s role as a technology leader through the seamless integration of customer understanding, joint and more rapid innovation and development work.

In 2021, research and product development expenditure amounted to 3.8 (3.8)% of net sales.

More information about our major technology innovations here.

Why invest in Glaston

  • Global megatrends support demand for Glaston’s products
  • Glaston’s addressable glass processing equipment market is expected to grow by more than 5% annually, on average, during the strategy period, and Glaston’s ambition is to clearly exceed this market growth*)
            *) Source: Glaston’s etimate
  • Long history of developing glass processing equipment
  • Technology leadership based on continuous, customer-oriented product development, enabling us to consistently bring to the market more advanced technology to meet customers’ changing needs
  • At the heart of product development is digitalisation, which facilitates the shift towards automatic glass processing

As the innovative frontrunner in its industry, Glaston’s ambition is to continue being the leader in developing the industry towards a more sustainable future. The majority of Glaston’s business is targeted at the architectural customer segment in which the company’s products provide key technologies for improving energy efficiency and the safety of buildings.

Mergers and Acquisitions

TimeCompany/IndustryEventDescription
1981Tamglass OyAcquisitionKyro acquires the entire share stock of Tamglass Oy, founded in 1970. Exports already account for 93 % of Tamglass’ net sales of FIM 54.7 million and the company has 148 employees. Kyro becomes a diversified company.
1985TecnomenAcquisitionKyro expands its electronics business by acquiring Tecnomen, which supplies Tamglass with automation and control systems. The company also operates in the field of telecommunications.
1986Glaston forest holdings and local electricity networkDivestmentThe company sells its forest holdings to Suomi-Salama and its local electricity distribution network to Oy Nokia Ab.
1995Glaston’s forest industry businessDivestmentKyro sells its forest industry business to Metsä-Serla Oy, amid a major restructuring of the entire sector.
1996Cattin MachinesAcquisitionCattin Machines, a Swiss manufacturer of safety glass machines, is acquired for the Tamglass Group.
2002Finton OyAcquisitionThe Tamglass Group’s glass processing business is supplemented by the balcony glazing manufacturer Finton Oy from Lahti Finland.
2002Uniglass OyAcquisitionThe Tamglass Group’s machine business is supplemented by the flat tempering machine manufacturer Uniglass Oy from Tampere Finland.
2003Z. Bavelloni Immobiliare S.p.A. and Glasto Holding B.V. as well as Suomen Lämpölasi OyAcquisitionKyro acquires Italian Z. Bavelloni Immobiliare S.p.A’s and Dutch Glasto Holding B.V’s all share as well as a majority shareholding in Suomen Lämpölasi Oy. Glaston Technologies, consisting of Tamglass and Bavelloni, becomes the world’s largest comprehensive supplier of glass processing machines, and its glass processing product range becomes the biggest in Finland.
2005Glaston’s hydropower and district heat distribution businessesDivestmentAt the end of the year, the Group sells its hydropower and district heat distribution businesses.
2007Glaston’s Energy BusinessDivestmentKyro sells its energy business area to M-real Oyj.
2007A+W Software AG GroupAcquisitionGlaston acquires the German A+W Software Group in July 2007, after which the Business Area, Software Solutions, is formed.
2009Tamglass Glass’s insulated and architectural glass processing operationsDivestmentGlaston Corporation’s subsidiary Tamglass Glass Processing Ltd. sells its insulated and architectural glass processing operations to INTERPANE Glass Oy.
2010Glass processing operationsDivestmentGlaston’s joint venture, the glass processing company INTERPANE Glass Oy, is sold to Rakla Finland Oy.
2013A+W Software GmbHDivestmentGlaston sells A+W Software to Constellation Software Inc. acting through its Friedman Operating Group.
2014GlassrobotsAcquisitionGlaston acquires the industrial property rights to all Glassrobots products.
2015Pre-processing machines businessDivestmentGlaston sells 100% of the shares of Glaston Italy S.p.A. to the local management of Glaston Italy S.p.A.
2017Pre-processing machines business in USA and CanadaDivestmentGlaston continues as a reseller of Bavelloni’s Pre-Processing machines in Mexico, Brazil and Singapore.
2018Tools businessDivestmentGlaston sells its Tools business to Italian Bavelloni S.p.A. The sale is carried out through a share deal of Glaston Tools S.r.l in Italy.
2019Bystronic glassAcquisitionGlaston acquires Bystronic Maschinen AG and Bystronic Lenhardt GmbH and their subsidiaries (“Bystronic glass”) from Conzzeta Group