Glaston Corporation          Stock Exchange Release       7 August 2019 at 12.30 EET

Glaston Corporation publishes unaudited pro forma financial information per quarter for the year 2018 and for the first quarter of 2019. 

The pro forma financial information is presented for illustrative purposes in order to reflect the hypothetical impact of the acquisition of Bystronic glass to the Company’s results of operations, if it had taken place as of 1 January 2018. The pro forma information is presented separately for group level and for the segments.

On 1 April 2019, Glaston Corporation completed the acquisition of Swiss-German based globally operating Bystronic glass, a company offering high-end machinery, systems and services for the processing of glass. Bystronic glass is consolidated as part of Glaston Corporation as of 1 April 2019 and consequently, the Company has two reporting segments: Glaston and Bystronic glass. In addition, the company will report net sales, order intake and order book for Heat Treatment Technologies, Bystronic Glass Technologies, Emerging Technologies (combining Emerging Technologies of the Glaston segment and Bystronic glass display business), Services (combining the service sales of the heat treatment services in the Glaston segment and Services & Spare Parts in the Bystronic glass segment) and Other product areas as of 1 April 2019.

Additional information on the basis of presentation of the pro forma financial information is included in Glaston’s Rights Issue Prospectus, dated 29 May 2019. The Finnish language prospectus is available on the company’s website.

In the following tables unaudited pro forma financial information for the group as well as for the segments for the first quarter of 2019 and each of the quarters in 2018 are presented.

Glaston is applying the new leasing standard ‘IFRS 16 leases’ fully retrospectively from 1 January 2019 and has restated the comparable figures accordingly for 2018.

Glaston’s half year financial report will be published on August 8, 2019 at 1 pm local time.

GLASTON GROUP
GLASTON AND BYSTRONIC GLASS PRO FORMA 2018

CONDENSED STATEMENT OF PROFIT OR LOSS
EUR million
 1-3/2019
 10-12/2018		  7-9/2018
 4-6/2018
 1-3/2018
Net sales 44.3 44.9 47.3 55.4 54.2
Other operating income 0.6 0.4 0.,4 1.2 0.2
Expenses -41.8 -45.8 -43.4 -51.5 -49.6
Depreciation, amortization and impairment -1.7 -1.8 -1.6 -1.6 -1.6
Depreciation of right-of-use assets -0.6 -0.6 -0.6 -0.7 -0.6
Operating profit 0,8 -2.9 2.0 2.8 2.5
Financial items, net -0.3 -0.7 -0.8 -0.6 -0.6
Interest expenses on lease liabilities -0.1 -0.1 -0.1 -0.2 -0.2
Result before income taxes 0.3 -3.8 1.1 2.1 1.7
Income taxes -0.7 0.7 -0.2 0.0 -0.8
Profit / loss for the period -0.3 -3.0 0.9 2.1 1.0
Number of shares, average, adjusted with share issue   (1.000)(1 51302 51302 51302 51302   51302
Earnings per share, EUR -0.005 -0.059 0.017 0.042 0.019

(1 Reverse share split was implemented on 1 March 2019. Rights issue was implemented during the second quarter in 2019. The number of shares and the share price for the comparative period has been restated accordingly.

Unaudited Pro Forma Statement of Profit or Loss for the year ended 31 December 2018

In EUR million Glaston IFRS

 		 Bystronic glass IFRS

 		 Pro forma -adjustment PPA(2   Pro forma -adjustment Bystronic loans   Pro forma adjust-ment Financing costs   Glaston Pro Forma IFRS

 
Net sales 101.1 100.7 201.8
Other operating income 2.2 0.3 2.6
Changes in inventories of finished goods and work in progress -1.7 7.3 -0.4 5.3
Own work capitalized 0.3 0.0 0.3
Materials -49.2 -46.3 -95.5
Personnel expenses -23.4 -36.4 -59.7
Other operating expenses -20.8 -20.3 -41.1
Depreciation, amortization and impairment -3.0 -1.2 -2.4 -6.6
Depreciation of right-of-use asset -1.8 -0.7 -2.6
Operating result 3.8 3.3 -2.8 4.4
Financial income 0.1 0.1 0,3
Financial expenses -0.8 -0.4 0.2 -2.0 -3.0
Net financial items -0.7 -0.2 0.2 -2.0 -2.7
Interest expenses on lease liabilities -0.5 -0.1 -0.6
Profit/loss before income tax 2.6 3.0 -2.8 0.2 -2.0 1.1
Income tax expense -0.7 -0.6 0.6 0.4 -0.2
Profit/loss for the period 1.9 2.5 -2.1 0.2 -1.6 0.9
         
Attributable to non-controlling interest -0.2 -0.2
Attributable to owners of the parent 2.1 2.5 -2.1 0.2 -1.6 1.0
Total 1.9 2.5 -2.1 0.2 -1.6 0.9

(2 in Glaston’s Rights Issue Prospectus,published on 29 May in 2019 the preliminary costs from purchase price allocation was EUR 3.9 million/year. Fair values have been revised and updated costs from purchase price allocation is EUR 2.8 million/year. 

PRELIMINARY FAIR VALUE ADJUSTMENTS
Fair value adjustments EUR million Estimated useful life(years) Depreciation/
amortization /year
EUR million
Buildings 4.8 20 0.2
Land 5.4 N/A -
Trademark 3.1 3 1.0
Customer relationships 11.4 10 1.1
Inventory 0.7 2 0.4
Total 25.4 2.8
Related deferred tax liablity 5.9


COMPARABLE EBITDA, EBITA AND OPERATING RESULT (EBIT)
Items affecting comparability
EUR million  

    
1-3/ 2019		  
10-12/ 2018		     
7-9/ 2018
 4-6/ 2018		  1-3/
2018
Restucturings and disposals of property, plant and equipment -0.8 -1.8 -0.3 0.0 -0.2
Items affecting comparability -0.8 -1.8 -0.3 0.0 -0.2
Comparable EBITDA
EUR million 1-3/
2019		 10-12/
2018		 7-9/
2018		 4-6/
2018		 1-3/
2018
Operating result (EBIT) 0.8 -2.9 2.0 2.8 2.5
Depreciation and amortization 2.3 2.4 2.3 2.2 2.3
EBITDA 3.1 -0.5 4.3 5.0 4.8
Items affecting comparability 0.8 1.8 0.3 0.0 0.2
Comparable EBITDA 3.9 1.3 4.6 5.0 5.0
% of net sales 8.8 % 2.9 % 9.8 % 9.1 % 9.1 %
Comparable EBITA
EUR million 1-3/
 2019		   
10-12/
2018		 7-9/
2018 		 4-6/
2018		 1-3/
 2018
Operating result (EBIT) 0.8 -2.9 2.0 2.8 2.5
Amortization and purchase price allocation 1.2 1.2 1.2 1.2 1.2
EBITA 2.0 -1.7 3.2 4.0 3.7
Items affecting comparability 0.8 1.8 0.3 0.0 0.2
Comparable EBITA 2.8 0.1 3.5 4.0 3.9
% of net sales 6.4 % 0.2 % 7.5 % 7.2 % 7.1 %


Comparable result EBIT
EUR million 1-3/2019 10-12/2018 7-9/2018 4-6/2018 1-3/2018
Operating result (EBIT) 0,8 -2,9 2,0 2,8 2,5
Items affecting comparability 0,8 1,8 0,3 0,0 0,2
Comparable EBIT 1,6 -1,1 2,4 2,8 2,7
% of net sales 3,6 % -2,4 % 5,0 % 5,1 % 4,9 %

SEGMENT INFORMATION


Reportable segments in Glaston Group are Glaston and Bystronic glass from 1. April 2019.

The reportable segment applies Glaston Group's accounting and measurement principles. Glaston follows the same commercial terms in transactions between the segment as with third parties. The reportable segment consists 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. Glaston’s and Bystronic glass’s business consists of the manufacture and sale of glass processing machines as well as the service operations for these machines. There is a high level of integration between machines and maintenance. Product development as well as sales and distribution are shared functions, serving both business areas. Their customers are the same, as is their market development, which is linked to the general development of the global market. Also the methods to distribute products or to provide services are similar.

GLASTON
EUR million 1-3/2019 10-12/2018 7-9/2018 4-6/2018 1-3/2018
Comparable EBITA 0.5 3.0 1.6 1.4 1.6
% of net sales 2.5 % 10.9 % 6.8 % 5.4 % 6.3 %
Net sales 20.8 27.8 23.0 25.6 24.8
Comparable EBIT 0.0 2.6 1.1 0.9 1.1
Comparable EBIT-% 0.2 % 9.2 % 4.7 % 3.6 % 4.4 %
Items affecting comparability -0.8 -1.3 -0.3 -0.0 -0.2
Operating result EBIT -0.8 1.2 0.7 0.9 0.9
% of net sales -3.8% 4.5% 3.2% 3.6% 3.8%


BYSTRONIC GLASS
EUR million 1-3/2019 10-12/2018 7-9/2018 4-6/2018 1-3/2018
Comparable EBITA 2.3 -2.9 2.0 2.6 2.3
% of net sales 9.8% -17.2% 8.1% 8.7% 7.8%
Net sales 23.6 17.1 24.4 29.8 29.4
Comparable EBIT 1.6 -3.7 1.3 1.9 1.6
Comparable EBIT-% 6.7% -21.5% 5.2% 6.4% 5.4%
Items affecting comparability - -0,5 - - -
Operating result EBIT 1.6 -4.2 1.3 1.9 1.6
% of net sales 6.7% -24.6% 5.2% 6.4% 5.4%


Net sales by geographical areas
milj. euroa 1-3/2019 10-12/2018 7-9/2018 4-6/2018 1-3/2018
Americas 12.4 12.9 11.2 11.5 10.3
EMEA 22.9 24.2 29.4 30.7 27.9
APAC 9.0 7.7 6.7 13.2 16.0
Total Glaston Group 44.3 44.9 47.3 55.4 54.2


Order intake
EUR million 1-3/2019 10-12/2018 7-9/2018 4-6/2018 1-3/2018
Glaston          22.9          33.9          21.7          25.4          26.5
Bystronic glass          22.4          29.5          22.6          27.4          29.7
Total Glaston Group          45.3          63.4          44.2          52.8          56.2


Order book
EUR million 31.3.2019 31.12.2018 30.9.2018 30.6.2018 31.3.2018
Glaston          42.8          38.2          36.3          37.3          36.0
Bystronic glass          61.4          61.7          48.1          49.7          52.7
Total Glaston Group        104.2          99.9          84.5          87.0          88.8


Net sales by product type
EUR million 1-3/2019 10-12/2018 7-9/2018 4-6/2018 1-3/2018
Heat Treatment Technologies          12.4          17.3         14.4          17.2          16.0
Bystronic Glass Technologies          13.6            7.2          17.0          20.8          19.9
Emerging Technologies            0.0 -0.0 -2.6            0.1            0.6
Services          17.2          17.9          16.1          14.3          15.5
Other and intersegment sales            1.1            2.5            2.5            3.1            2.2
Total Glaston Group          44.3          44.9          47.3          55.4          54.2


Order intake by product type
EUR million 1-3/2019 10-12/2018 7-9/2018 4-6/2018 1-3/2018
Heat Treatment Technologies 13.5 26.6 12.7 16.4 18.0
Bystronic Glass Technologies 12.4 19.4 12.2 18.1 20.5
Emerging Technologies 0.6 - - - -
Services 17.4 15.2 17.3 15.8 15.9
Other 1.3 2.2 2.1 2.6 2.0
Total Glaston Group 45.3 63.4 44.2 52.8 56.2
Order book by product type
EUR million 31.3.2019 31.12.2018 30.9.2018 30.6.2018 31.3.2018
Heat Treatment Technologies 38.9 35.2 30.6 32.5 31.1
Bystronic Glass Technologies 56.6 57.0 43.4 47.7 50.7
Emerging Technologies 5.6 5.1 5.1 2.5 3.0
Services 2.7 2.6 5.1 4.0 3.3
Other 0.4 0.1 0.3 0.3 0.7
Total Glaston Group 104.2 99.9 84.5 87.0 88.8

For further information, please contact:
CFO Päivi Lindqvist , tel. +358 10 500 500
Vice President, IR, Communications and Marketing Joséphine Mickwitz, tel. +358 10 500 5070

Glaston Corporation

Glaston is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural, automotive, solar and appliance industries. The company also supports the development of emerging technologies integrating intelligence to glass.

As of April 2019, Bystronic glass is part of Glaston Group. Together we are committed to providing our clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. We operate globally with manufacturing, services and sales offices in 12 countries. Glaston’s shares (GLA1V) are listed on Nasdaq Helsinki Ltd.  

Distrubution: Nasdaq Helsinki, key media, www.glaston.net

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