Headline
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.
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-March 2023 interim report, published on 26 April 2023:
“In the first quarter of 2023, market activity continued at a good level. Despite growing market uncertainty and a longer decision-making period for new investments due to economic uncertainty and rapidly increasing financing costs, our order intake totaled EUR 56.9 million, which was 4% below the level of the corresponding period in 2022 but 10% above our Q4 order intake. First-quarter net sales were down by 2% to EUR 51.3 million, primarily due to low machine volume in the Automotive business. Profitability was reasonable with comparable EBITA at EUR 3.0 million, corresponding to an EBITA margin of 5.8%. Profitability was impacted by the loss in the Automotive & Display business, which was a result of low volume and production ramp-up in China.
The Services business saw a slow start to the year. Order intake was 2% below the level of the corresponding period in the previous year, mainly due to the lower upgrade order intake than in 2022. The weak upgrade order intake in the latter part of 2022 affected Services’ first-quarter net sales. Daily Services and spare part business grew 9% and 6% respectively.
Ramping up the capabilities for the production of Automotive pre-processing equipment in Tianjin, China continued in line with our plans. The first delivery projects from Tianjin have low profitability as we are still building up the local supply chain. This impacted our first-quarter profitability and this will continue for the second quarter. In addition, we are manufacturing the first flat tempering CHF Solar lines in Tianjin, mainly during the first half of this year.
Growing our business in China is one of our strategic focus areas. Compared to the solar and automotive markets, the development of the architectural market in China has been characterized by uncertainty. Taking place in early May, the China Glass exhibition will be the first post-COVID meeting point for the industry, giving us valuable market insight and offering a great opportunity to meet face-to-face with our customers, with the goal of gaining new business.
Our good progress in sustainability continued. In 2022, we made major progress in reducing our own carbon footprint and we are now ready for the next step: we are committed to setting near-term company-wide emission reduction targets in line with climate science with the Science Based Targets initiative (SBTi). Our commitment to the SBTi challenges us to work together with our suppliers and customers to reduce emissions across the whole glass processing value chain.
In the review period, signs of increasing market uncertainty and more cautious customer behavior have been perceptible. However, the underlying growth drivers for our products and services remain solid and our high order backlog supports our performance in the coming quarters.”
Guidance
GLASTON’S OUTLOOK FOR 2023 REMAINS UNCHANGED
published in the Q1/2023 interim report on 26 April 2023
In 2023, Glaston expects the markets to remain active despite some regional differences. The strong megatrends driving the demand for energy-efficient glass solutions continue to support Glaston’s markets. Europe could however be particularly affected by the slowdown in the architectural market. In the Americas, Glaston expects the demand to continue strong, whereas, in China, the prospects of the architectural market remain uncertain.
In 2023, Glaston continues to focus on the execution of its strategy, which will incur costs and capital expenditure ahead of the effect on revenue growth. Amid geopolitical tensions and increasing uncertainty in the global business environment, the higher-than-normal level of unpredictability is related to customers’ investment decisions.
Glaston entered 2023 with an order backlog 46 % higher than in the previous year, which supports the company’s net sales and profitability development. The Automotive production ramp-up in China continues to have a negative impact on profitability in the second quarter of 2023. Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2023 from the levels reported for 2022. In 2022, Group full-year net sales totaled EUR 213.5 million and comparable EBITA was EUR 13.6 million.
GLASTON’S OUTLOOK FOR 2023
as published in the Financial Statements bulletin on 9 February 2023
In 2023, Glaston expects the overall market activity to remain at a good level despite some regional differences. Although the megatrends support the use of energy-efficient windows, demand in Europe could be affected by the slowdown in the architectural market. In the Americas, Glaston expects the demand to continue strong, whereas in China, the prospects of the architectural market are uncertain.
In 2023, Glaston continues to focus on the execution of its strategy, which will incur costs and capital expenditure ahead of the effect on revenue growth. As supply chain disturbances and geopolitical tensions continue, a higher-than-normal uncertainty is related to the development of economic activity and customers’ investments.
Glaston entered 2023 with an order backlog 46% higher than in the previous year. This provides a strong starting point for 2023 and supports the company’s net sales and profitability development. Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2023 from the levels reported for 2022. As is typical, Glaston expects the first quarter of 2023 to be the weakest of the year, additionally impacted by low upgrade net sales and a higher share of new products. In 2022, Group full-year net sales totaled EUR 213.5 million and comparable EBITA was EUR 13.6 million.
GLASTON SPECIFIES OUTLOOK FOR 2022
(published in the January-September 2022 report on 27 October 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.
(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.)
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.
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.
One of our latest innovations is the tempering process Autopilot, which is based on the same solutions that are used in autonomous passenger cars. Autopilot presages a huge change for the entire glass processing industry, as it minimizes the need for machine operator input and offers process control without parameters.
To support the automatization of the heat treatment processes, in 2022 further development steps were taken in automation by developing new AI-based online measurement devices.
In Insulating Glass Technologies, development focused on finalizing the MULTI’ARRISSER arrissing machine product family. To better match customers’ demand for double-glazing units, the development of an enhanced offering to the sealing robot family with mid-segment sealing machines was initiated.
In automotive, the next-generation pre-processing line CHAMP EVO and MATRIX EVO bending furnace were introduced in the latter part of the year.
In 2022, research and product development expenditure amounted to 4.3 (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
| Time | Company/Industry | Event | Description |
| 1981 | Tamglass Oy | Acquisition | Kyro 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. |
| 1985 | Tecnomen | Acquisition | Kyro expands its electronics business by acquiring Tecnomen, which supplies Tamglass with automation and control systems. The company also operates in the field of telecommunications. |
| 1986 | Glaston forest holdings and local electricity network | Divestment | The company sells its forest holdings to Suomi-Salama and its local electricity distribution network to Oy Nokia Ab. |
| 1995 | Glaston’s forest industry business | Divestment | Kyro sells its forest industry business to Metsä-Serla Oy, amid a major restructuring of the entire sector. |
| 1996 | Cattin Machines | Acquisition | Cattin Machines, a Swiss manufacturer of safety glass machines, is acquired for the Tamglass Group. |
| 2002 | Finton Oy | Acquisition | The Tamglass Group’s glass processing business is supplemented by the balcony glazing manufacturer Finton Oy from Lahti Finland. |
| 2002 | Uniglass Oy | Acquisition | The Tamglass Group’s machine business is supplemented by the flat tempering machine manufacturer Uniglass Oy from Tampere Finland. |
| 2003 | Z. Bavelloni Immobiliare S.p.A. and Glasto Holding B.V. as well as Suomen Lämpölasi Oy | Acquisition | Kyro 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. |
| 2005 | Glaston’s hydropower and district heat distribution businesses | Divestment | At the end of the year, the Group sells its hydropower and district heat distribution businesses. |
| 2007 | Glaston’s Energy Business | Divestment | Kyro sells its energy business area to M-real Oyj. |
| 2007 | A+W Software AG Group | Acquisition | Glaston acquires the German A+W Software Group in July 2007, after which the Business Area, Software Solutions, is formed. |
| 2009 | Tamglass Glass’s insulated and architectural glass processing operations | Divestment | Glaston Corporation’s subsidiary Tamglass Glass Processing Ltd. sells its insulated and architectural glass processing operations to INTERPANE Glass Oy. |
| 2010 | Glass processing operations | Divestment | Glaston’s joint venture, the glass processing company INTERPANE Glass Oy, is sold to Rakla Finland Oy. |
| 2013 | A+W Software GmbH | Divestment | Glaston sells A+W Software to Constellation Software Inc. acting through its Friedman Operating Group. |
| 2014 | Glassrobots | Acquisition | Glaston acquires the industrial property rights to all Glassrobots products. |
| 2015 | Pre-processing machines business | Divestment | Glaston sells 100% of the shares of Glaston Italy S.p.A. to the local management of Glaston Italy S.p.A. |
| 2017 | Pre-processing machines business in USA and Canada | Divestment | Glaston continues as a reseller of Bavelloni’s Pre-Processing machines in Mexico, Brazil and Singapore. |
| 2018 | Tools business | Divestment | Glaston 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. |
| 2019 | Bystronic glass | Acquisition | Glaston acquires Bystronic Maschinen AG and Bystronic Lenhardt GmbH and their subsidiaries (“Bystronic glass”) from Conzzeta Group |