Strategy
GLASTON HAS REVISED ITS STRATEGY AND UPDATED ITS FINANCIAL TARGETS AND PUBLISHED NEW 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.
The strategy was presented in more detail in the CMD 2021.
Glaston Strategy 2021-2025 in brief
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.