Glaston Corporation Financial Statements 1 January - 31 December 2009
GLASTON CORPORATION Financial Statements Review 10.2.2010 at 13.00
Glaston Corporation Financial Statements 1 January - 31 December 2009
- Orders received in January-December totalled EUR 141.9 (230.5) million. Orders
received in the fourth quarter totalled EUR 41.6 (44.6) million. The volume of
orders received grew 26% compared with the previous quarter.
- Glaston's order book on 31 December 2009 stood at EUR 45.5 (62.5) million.
- Consolidated net sales totalled EUR 151.8 (270.4) million. Final quarter net
sales totalled EUR 35.8 (68.9) million.
- The operating result was a loss of EUR 55.3 (6.1 loss) million, i.e. -36.4
(-2.3)% of net sales
- The operating result excluding non-recurring items was a loss of EUR 33.6 (6.2
profit) million, i.e. -22.2 (+2.3)% of net sales. The final quarter operating
result was a loss of EUR 11.0 (0.3 loss) million, i.e. -30.8 (-0.4)% of net
sales.
- Non-recurring items of EUR -21.6 (-12.3) million were recognised for the full
year, and EUR -17.3 (-12.3) million in the final quarter.
- Return on capital employed (ROCE) was -32.1 (-2.3)%.
- Earnings per share were EUR -0.68 (-0.12), of which the final quarter
contribution was EUR -0.34 (-0.16).
- The Board of Directors proposes to the Annual General Meeting that no dividend
be distributed.
- Due to efficiency measures already implemented, Glaston
starts 2010 on a better foundation and expects 2010 net sales to be at least at
the 2009 level and the operating result to significantly improve.
President & CEO Arto Metsänen:
2009 was very difficult for Glaston due to the economic recession. Demand for
glass processing machines was at an exceptionally low level and net sales
declined sharply.
The emphasis of machines was on sales of single machines. Demand for more
extensive deliveries and solar energy investments was weak and projects were
postponed to a later date. In a difficult market situation, the Services segment
performed relatively well, however.
During 2009 efficiency measures initiated in late 2008 were continued. In
addition to these an extensive adjustment programme was initiated in the final
quarter of 2009 and the employee negotiations were completed by the end of
December. We will adjust our production capacity, optimise our product range and
simplify the structure of our sales organisation. The agreed measures will cut
Glaston's workforce at most by around 400 employees.
Thanks to the efficiency measures performed, we begin 2010 on a better
foundation. Our current production structure provides us with a good starting
point. We are strengthening our production in China and are investing in
developing both technical and sourcing expertise. In the early part of the 2010,
the emphasis will be on completing the efficiency improvement programme.
New segment information
On 22 April 2009, Glaston announced that it was changing its organisation, and
the reportable segments are now Machines, Services and Software Solutions.
The Pre-processing and Heat Treatment business areas have been combined to form
the Machines segment. At the same time, maintenance and service business was
separated from machine operations into its own Services segment.
The Machines segment comprises tempering, bending and laminating machines sold
under the Tamglass and Uniglass brands, glass pre-processing machines sold under
the Bavelloni brand, and tool manufacturing. The Services segment consists of
glass processing machine maintenance and service activity, sales of spare parts
and tools, and the operation of the glass processing factory in Akaa, Finland,
as a service activity on behalf of a customer. The Software Solutions segment
includes enterprise resource planning systems for the glass industry and sold
under the Albat+Wirsam brand.
The geographical areas reported quarterly are, EMEAI (Europe, Middle East,
Africa, India, Pakistan and Bangladesh), Asia and America.
Markets
In 2009 the economic recession strongly influenced demand for glass processing
machines and the market situation was extremely difficult throughout the year.
Glaston's markets in different countries developed unevenly during the year. As
the European, Middle Eastern and North American weakened further, positive
development was perceptible in the South American and Chinese.
Machines
Despite a weakening of demand, the Machines segment maintained its market
position in 2009. Owing to the challenging market situation, price competition
intensified during the year, particularly with respect to Asian competitors.
Demand for glass processing machines weakened significantly in all market areas,
except for South America, where demand remained high throughout the year. In
Central Europe, demand in the German market stood out positively from the rest
of the EMEAI area. At the end of 2009, a gradual recovery of the market was also
evident in the Asian and Australian markets. Particularly in the Chinese market,
recovery of the architectural glass segment was accelerated by local stimulus
measures initiated during the year.
Demand for solar energy glass solutions weakened as customers postponed
decision-making on projects due to economic uncertainty and financial market
instability. Demand for comprehensive (One-Stop-Partner) deliveries was very low
and the emphasis on machine sales was on single machines.
In 2009 efficiency improvement played a key role in developing the operations of
the Machines segment. An efficiency programme initiated in 2008 continued and,
additionally, new cost-cutting programmes were launched, which included
significant personnel reductions in Finland and Italy. Moreover, the product
portfolio was rationalised and machine production location arrangements effected
by transferring the focus of production and sourcing more towards China. The
measures were more extensive on the pre-processing technology.
Orders received in the Machines segment totalled EUR 88.5 (144.4) million in
2009. January-December net sales totalled EUR 82.2 (168.5) million.
Services
In 2009 the Services segment's strongest market areas were Germany, Brazil,
Australia and New Zealand. In the EMEAI area demand for maintenance services and
upgrades slowed down except for Germany and the UK. The Middle East was quieter
than expected. Demand in the APAC area declined, except for Australia and New
Zealand. In the United States demand was subdued.
The economic recession negatively impacted customer demand, particularly in the
solar energy, architectural and automotive glass segments. Lower utilisation
rates of glass processing machines reduced the need for spare parts. The
outsourcing trend initiated in previous years came to a halt.
Although market demand weakened, even so the volume of the Services segment's
service contracts and maintenance work grew and demand for training services
clearly increased. Demand for spare parts fell significantly, however. There was
greater emphasis on machine modernisations as glass processors focused on
machine upgrades instead of new investments. The modernisations were related to
energy-saving, automation systems and technology upgrades. At the end of the
year, there was also increased demand for modernisation related to boosting
performance and improving the quality of architectural glass.
In 2009 the significance of geographical areas and operating close to the
customer was highlighted. Orivesi upgrade production was transferred to Tampere
and the integration of Uniglass machine maintenance into the rest of the service
organisation was completed. A servicing point for Bavelloni machines was
established in the Middle East and a new distribution centre set up in
Cinnaminson, USA.
Orders received in the Services segment totalled EUR 42.8 (72.3) million in
2009. January-December net sales totalled EUR 48.1 (76.0) million.
Software Solutions
In 2009 Software Solutions improved its market position in
Europe due to strong demand from medium-sized companies. Although demand among
international operators generally declined, medium-sized companies invested
strongly in renewing their production processes towards a higher degree of
automation, greater flexibility and shorter delivery times.
The Software Solutions segment did not lose market share, even though the market
was at a standstill or weakened outside Europe. A factor driving demand in 2009
was the segment's ability to deliver highly integrated software solutions that
facilitate increased automation of glass processing.
The Software Solutions segment succeeded in adjusting operations to correspond
with shrinking markets by strengthening product management and implementation
structures and processes as well as by prioritising customer orientation.
In 2009 a more prominent role was given to CAD and line control systems in the
product range. The Software Solutions segment developed customised product
applications for the Asian market. New-generation software systems developed for
the window industry facilitated better integration of work flow. The Panorama
and AWFactory products launched in 2008 and intended to manage integrated line
control systems were delivered to selected customers as pilot projects during
the year.
Orders received in the Software Solutions segment totalled EUR 10.6 (13.9)
million in 2009. January-December net sales totalled EUR 23.9 (28.2) million.
Orders received
Glaston's orders received during the financial year totalled EUR 141.9 (230.5)
million. Of orders received, the Machines segment accounted for 62.4%, Services
30.2% and Software Solutions 7.4%.
Orders received during the final quarter totalled EUR 41.6 (44.6) million.
Order book
Glaston's order book on 31 December 2009 was EUR 45.5 (62.5) million. Of the
order book, the Machines segment accounted for EUR 39.8 (47.3) million, Services
EUR 1.6 (11.6) million and Software Solutions EUR 4.1 (3.5) million.
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| Order book, EUR | 31.12.2009 | 31.12.2008 | Change, % |
| million | | | |
--------------------------------------------------------------------------------
| Machines | 39.8 | 47.3 | -16% |
--------------------------------------------------------------------------------
| Services | 1.6 | 11.6 | -86% |
--------------------------------------------------------------------------------
| Software | 4.1 | 3.5 | 17% |
| Solutions | | | |
--------------------------------------------------------------------------------
| Total | 45.5 | 62.5 | -27% |
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Net sales and operating profit
Glaston's January-December net sales totalled EUR 151.8 (270.4) million. Of the
net sales, the Machines segment accounted for EUR 82.2 (168.5) million, Services
EUR 48.1 (76.0) million and Software Solutions EUR 23.9 (28.2) million.
Final quarter net sales totalled EUR 35.8 (68.9) million. Of the final quarter
net sales, the Machines segment accounted for EUR 19.1 (43.9) million, Services
EUR 11.0 (19.2) million and Software Solutions EUR 6.3 (6.6) million.
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| Net sales, EUR million | 2009 | 2008 |
--------------------------------------------------------------------------------
| Machines | 82.2 | 168.5 |
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| Services | 48.1 | 76.0 |
--------------------------------------------------------------------------------
| Software Solutions | 23.9 | 28.2 |
--------------------------------------------------------------------------------
| Parent company, elim. | -2.4 | -2.2 |
--------------------------------------------------------------------------------
| Total | 151.8 | 270.4 |
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The operating result, excluding non-recurring items, was a loss of EUR 33.6 (6.2
profit) million, i.e. -22.2 (+2.3)% of net sales. The operating result for the
final quarter, excluding non-recurring items, was a loss of EUR 11.0 (0.3 loss)
million.
The operating result was a loss of EUR 55.3 (6.1 loss) million. Non-recurring
items of EUR - 21.6 (-12.3) million were recognised for the full year.
Non-recurring items totalling EUR -17.3 (-12.3) million were recognised in the
final quarter. 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).
The Machines segment's operating result in January-December was a loss of
EUR 38.8 (4.4 loss) million and in the final quarter a loss of EUR 20.4 (9.1
loss) million. The 2009 operating result, excluding non-recurring items, was a
loss of 22.9 (5.1 profit) million and in the final quarter a loss of EUR -8.3
(0.4 profit) million.
The strong decline in sales weakened the profitability of the Machines segment,
and the substantial cost-cutting and adjustment measures were insufficient to
balance sharply falling net sales. In addition, intense price competition
affected market prices, weakening the profitability of both the Machines segment
and the entire sector.
The Services segment's operating result in January-December was a loss of
EUR 4.7 (2.7 profit) million and in the final quarter a loss of EUR 2.3 (1.3
loss) million. The segment's operating result, excluding non-recurring items,
was a loss of EUR 1.9 (4.9 profit) million for the full year and a profit of
EUR 0.2 (1.0 profit) million in the final quarter. The Services result was
heavily burdened by Tamglass Glass Processing's operating loss of EUR 4.6 (6.3
loss) million.
The Software Solutions segment's operating result in January-December was a loss
of EUR 1.3 (3.2 profit) million and in the final quarter a loss of EUR 1.6 (0.4
loss) million. The segment's operating result, excluding non-recurring items,
was a profit of EUR 0.4 (3.7 profit) million for the full year and a loss of
EUR 0.2 (0.1 profit) million in the final quarter.
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| Operating result, excluding | 1-12/2009 | 1-12/2008 |
| non-recurring items EUR million | | |
--------------------------------------------------------------------------------
| Machines | -22.9 | 5.1 |
--------------------------------------------------------------------------------
| Services | -1.9 | 4.9 |
--------------------------------------------------------------------------------
| Software Solutions | 0.4 | 3.7 |
--------------------------------------------------------------------------------
| Parent company, elim. | -9.3 | -7.6 |
--------------------------------------------------------------------------------
| Total | -33.6 | 6.2 |
--------------------------------------------------------------------------------
| Non-recurring items | -21.6 | -12.3 |
--------------------------------------------------------------------------------
| Operating result after | -55.3 | -6.1 |
| non-recurring items | | |
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The result for the financial year was a loss of EUR 53.6 (9.2 loss) million.
Return on capital employed (ROCE) was -32.1 (-2.3)%. Earnings per share were EUR
-0.68 (-0.12) Fourth-quarter earnings per share were EUR -0.34 (-0.16).
Finance and cash flow
The Group's financial position remained reasonable. The Group's financial
position was affected mainly by changes in working capital and cash flow from
operating activities as well as by a convertible bond (EUR 23.8 million) issued
in June.
Cash flow from operating activities was negative EUR -1.2 million, of which
change in net working capital was EUR +28.6 million. Cash flow from investments
was EUR -7.5 (-13.4) million. Cash flow from financing activities in
January-December was EUR +12.3 (+37.8) million, including dividends paid in the
review period of EUR 3.9 (7.8) million.
The equity ratio on 31 December 2009 was 33.1 (45.8)%.
The Group's liquid funds on 31 December 2009 totalled EUR
15.6 (11.5) million. Interest-bearing net debt totalled EUR 63.7 (57.9) million
and net gearing was 91.9 (46.8)%. In the liquidity management, Glaston mainly
utilises a committed revolving credit facility. The revolving credit facility
was renewed in November 2009. At the end of 2009, the size of the new revolving
credit facility was EUR 74 million, of which EUR 42 million was in use at the
end of 2009. The revolving credit facility includes covenant terms and other
commitments which are linked to consolidated key figures. If the covenant terms
are not fulfilled, negotiations with the lenders will be initiated. These
negotiations may lead to notice of termination of financial agreements. The
terms of agreement also include restrictions on the payment of dividends. Based
on the restrictions dividend distribution is conditional on Glaston's net
gearing such that net gearing before and after a possible dividend payment does
not exceed 80%.
Efficiency programme
To improve profitability and adjust operations to the market situation,
efficiency measures were initiated throughout the Group in September 2008, and
these measures were continued during 2009.
In addition to the efficiency measures under way, Glaston announced in April
that it would change its structure to improve profitability. The Pre-processing
and Heat Treatment business areas were combined to form the Machines segment.
The Machines segment's new global organisation was appointed and was active by
June 2009. The operational restructuring proceeded in the autumn, focusing on
completing integration and further improving profitability, developing the
global production structure, enhancing sourcing activity and streamlining the
product portfolio.
Operational efficiency was enhanced by adjusting production, and the production
unit located in Mexico was closed in March. The factory located in Cinnaminson,
USA was closed in December 2009 and production of tempering machines
manufactured in the USA was transferred to Finland and China.
In autumn 2009, Glaston initiated a programme to develop spare parts and tool
operations as well as logistics, and inventories in Mexico and Greensboro were
transferred to Cinnaminson, USA. In the Services business, cost-cutting and
operational adjustment measures continued. A unit manufacturing upgrade products
in Orivesi, Finland was closed.
The Group had substantial temporary lay-off programmes under way in Finland and
Italy during the year. Working time was shortened in Germany and the USA.
In October Glaston announced an extensive adjustment programme to reorganise its
operations. The employee negotiations related to the programme were completed
during December and included, among other things, production capacity adjustment
measures, product range optimisation, and simplification of the sales structure.
The need to cut jobs amounts at most to around 400. The programme's annual
additional savings are around EUR 12 million and they will be implemented mainly
in the first half of 2010. The non-recurring costs arising from the planned
measures amount to EUR 7.6 million and they have been recognised in the final
quarter of 2009. Most of these non-recurring costs will impact cash flow in
2010.
The planned cost savings from the efficiency measures total around EUR 30
million. Related non-recurring costs totalled EUR 11.4 million for 2009, of
which EUR 7.6 million were related to the efficiency programme initiated in
autumn, and the rest to the efficiency programme launched in spring 2009, which
was realized at only EUR 3.8 million instead of the previously estimated amount.
Research and product development
Research and product development expenditure in 2009 totalled EUR 13.6 (14.4)
million, representing 8.9 (5.3)% of net sales.
Due to the difficult market situation and intensified competition, product
development focused during the year on developing features of machines already
on the market to allow the addition of new functionalities to machines delivered
earlier. Moreover, the localisation of products to correspond with the
requirements of the Chinese market continued.
During the year, Glaston launched a number of new heat treatment technology
machines, such as the Tamglass ProE MAGNUM+ 3396 and 33120 machines, the
Tamglass Syncrobend and the Tamglass Compact. The Tamglass ProE MAGNUM+ is the
market's largest flat tempering machine and the Tamglass Compact is a basic flat
tempering machine for smaller glass sizes. The Tamglass Syncrobend is a
high-capacity machine intended for the tempering of double-curved glass. The
machine can handle rapid changes of glass type and variable series sizes,
offering good capability for flexible manufacturing of many types of glass. In
addition to these, the cutting product range was supplemented by a machine for
cutting laminated and coated glass. The CNC product range was also expanded with
a new type of machine.
The product development priority in the Software Solutions segment was the
further development of products and, among other things, the refining of product
variations for the Asian market.
During 2009 Glaston's product development operating practices were enhanced.
Product development of the former Pre-processing and Heat Treatment business
areas was centralised into the Machines segment. In addition, the Uniglass
product portfolio was also incorporated into the product development of the
Machines segment. As a consequence of the closure of the factory in the USA,
production and development of the CHF product range was transferred to China and
Finland.
Capital expenditure, depreciation and amortisation
Glaston's gross capital
expenditure totalled EUR 8.5 (18.4) million. The most significant capital
expenditure during 2009 was related to the ERP project as well as to a joint
venture founded in connection with the sale of the glass processing operations.
During the financial year, depreciation and amortisation of intangible assets
and property, plant and equipment totalled EUR 8.4 (8.7) million. In addition,
impairment losses totalled EUR 12.5 (2.6) million, of which goodwill accounted
for EUR 7.8 million.
Group structural changes
As part of an efficiency programme initiated in 2008, operations of Uniglass
Engineering Oy were transferred to Glaston's factory in Tampere, Finland.
Operations at the Uniglass factory in Ylöjärvi, Finland, ended on 31 March 2009.
Glaston's subsidiary Tamglass Glass Processing Ltd. sold its insulation and
architectural glass processing operations to INTERPANE Glass Oy in March.
INTERPANE Glass Oy is a Glaston joint venture. As of 1 April 2009, Glaston's
glass processing operations consist only of solar reflector production at Akaa,
Finland, as a service activity on behalf of a customer.
The Pre-processing and Heat Treatment business areas were merged in April to
form the Machines segment. To boost sales of tools and ensure synergy benefits
in spare parts sales and deliveries, tool sales were transferred during the
third quarter from the Machines segment to the Services segment, with
manufacturing and development of tools remaining in the Machines segment.
Glaston's two companies in Mexico were merged in the second quarter, Glaston UK
Ltd and Albat+Wirsam Software Ltd in the UK at the beginning of the third
quarter, and Albat+ Wirsam Software AG and Cantor Software GmbH in Germany at
the beginning of September. In Italy, Glaston Italy S.p.A. and DiaPol S.r.l.
were merged in December.
Changes in the company's management
Henrik Reims was appointed Senior Vice President Sales and Marketing as of
1 April 2009, Topi Saarenhovi Senior Vice President of the Machines segment as
of 22 April 2009 and Manne Tiensuu Glaston's Senior Vice President, Human
Resources as of 15 May 2009. Arto Metsänen M.Sc.(Eng.) was appointed on 5 August
2009 as the company's new President & CEO, and he started in his position on
1 September 2009.
Personnel
Glaston initiated negotiations to adjust human resources significantly to the
weakened market situation in late 2008. Substantial temporary lay-offs in
Finland and Italy were initiated in late 2008 and in early 2009 and continued
during the year. It was decided in March to temporarily lay off all Glaston
Finland Oy personnel, excluding maintenance staff, a total around 200 people,
for 10-18 weeks, and the lay-offs continued in autumn 2009. In Italy 25% of
personnel, i.e. 100 people, have been regularly temporarily laid off since
December 2008. A shortening of working time was agreed in Germany and the USA.
In October 2009, Glaston initiated an extensive adjustment programme covering
the entire Glaston personnel worldwide. The most substantial adjustment measures
were directed at Italy, where it was agreed to cut around 140 jobs, and in
Finland, where 50 employees were made redundant in December 2009 following
negotiations.
On 31 December 2009, Glaston had a total of 1,160 (1,541) employees. Of the
Group's employees, 20% worked in Finland and 53% elsewhere in the EMEAI area,
15% in Asia and 13% in the Americas. The average number of employees was 1,344
(1,519).
Environment
Glaston aims to be as environmentally friendly as possible in its
operations. Glaston is continually developing its processes in order to take the
principles of sustainable development better into account. As a rule, Glaston's
own production operations do not, however, load the environment significantly.
In product development, paying due attention to energy efficiency occupies a key
role and the goal is to make glass processing machines as energy-efficient as
possible.
The glass processing machines manufactured by Glaston have long lifetimes, and
the entire life cycle of a machine is taken into account in its design. Glass
processing machines are developed and manufactured to withstand constant use at
high production capacities. The modernisation of a machine with new technical
features will extend the life of the machine and will, for example, reduce
energy consumption in glass processing.
Glaston pays special attention to the recyclability of machine materials,
particularly with respect to components susceptible to wear and tear and thus
often changed.
Environmental problems and discussion of climate change have increased demand
for products that have a positive impact on the environment. Besides other types
of glass, the machines manufactured by Glaston are also used to produce energy
glass, which reduces buildings' energy consumption, as well as glass used in
applications that produce solar energy.
Risks and risk management
Glaston operates globally and changes in the development of the world economy
directly affect the Group's operations and risks. The Board of Directors of
Glaston Corporation is responsible for the Group's risk management policy and
supervises its implementation. The President and CEO and the Executive
Management Group, reporting to the Board of Directors, are responsible for risk
management operating practices, implementation and monitoring.
The development of comprehensive risk management is a Group-level responsibility
in accordance with risk management operating instructions. The business areas
and units are responsible for recognising, managing and reporting risks
associated with their own operations. The Group Treasury handles centrally the
management of the Group's financial risks in accordance with a treasury policy
approved by and within the restrictions issued by the Board of Directors.
A strategic risk for Glaston is above all the possible arrival on the market of
a competing machine technology, which would require Glaston to make considerable
product development investments. Moreover, loss of the Group's market shares,
particularly in the most strongly emerging markets (Asia, the Middle East) is a
strategic risk. Implementing the Group's strategy may require company
acquisitions, the possible failure of which would affect financial performance
and Glaston's risk profile.
Glaston's most significant operational risks include management of large
customer projects, the availability and price development of components,
management of the subcontractor network, and the availability and permanence of
personnel. Glaston is developing its information systems and despite careful
planning, temporary disruptions to operations might be associated with the
introduction stages.
Financial risks connected with operations, such as foreign exchange, interest
rate, financing and counterparty risks and, particularly in the last year,
credit loss and liquidity risks have grown. The nature of international business
means that the Group has risks arising from fluctuations in foreign exchange
rates. Changes in interest rates represent an interest rate risk. Credit and
counterparty risk arises from risk associated with the payment period granted to
customers. The liquidity risk comes from the fact that the Group's negotiated
credit facilities are insufficient to cover the financial needs of the business.
Financial risks and their management are explained in more detail in the
consolidated financial statements.
In protecting against possible accident risk, worldwide insurance programmes
covering all companies are used, in addition to preventive risk management
measures. The coverage of these programmes is regularly reviewed as part of
overall risk management.
Shares and share prices
Glaston Corporation's paid and registered share capital
on 31 December 2009 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 838,582 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 134,173.
During 2009, some 28,789 of the company's own shares, transferred in 2008 to key
individuals on the basis of the share-based incentive scheme, were returned to
Glaston Corporation, as the terms for the performance period of the incentive
scheme were not fulfilled.
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. Each share has a
counter book value of EUR 0.16.
During 2009, a total of 7,032,751 of the company's shares were traded,
representing around 9% of the average number of shares. The lowest price paid
for a share was EUR 0.92 and the highest price EUR 1.44. The volume-weighted
average price of shares traded during the financial year was EUR 1.18. The
closing price on 31 December 2009 was EUR 1.08.
On 31 December 2009, the market capitalisation of the company's shares, treasury
shares excluded, was EUR 84.8 (71.5) million. The equity per share attributable
to the owners of the parent was EUR 0.88 (1.58).
Share-based incentive schemes
On 9 May 2007, Glaston's Board of Directors
decided on a share-based incentive scheme for the Glaston Group's key
individuals. The scheme has three one-year performance periods, namely the
calendar years 2007, 2008 and 2009. The scheme will be settled in 2008, 2009 and
2010 in shares and cash. The proportion to be paid in cash is intended to cover
taxes and tax-related costs arising to key personnel from the bonus. Shares
cannot be disposed of within two years of the bonus being awarded.
The bonus from the incentive scheme for the 2009 performance period was based on
growth of the Group's operating profit and a reduction of net working capital.
If the targets set for the performance criteria of the incentive scheme for the
years 2007-2009 are achieved in full, a maximum of 652,500 shares, namely
217,000 shares per year, will be given as bonus from the scheme, and cash paid
will be at most the amount needed for the taxes and tax-related costs arising to
key individuals from the bonus at the time the bonus is paid.
Due to Glaston's weak financial performance, Glaston's Board of Directors
decided that no return on the incentive scheme will be paid for the 2009 reward
period.
In addition to the above mentioned share-based payment plan, the CEO of Glaston
Corporation has a separate share-based payment incentive plan. According to the
plan, the CEO will receive 50,000 shares in Glaston Corporation one year after
the date when his employment in Glaston began.
Decisions of the Annual General Meeting
The Annual General Meeting of Glaston
Corporation was held in Helsinki on 17 March 2009. The Annual General Meeting
approved the financial statements and consolidated financial statements for 2008
and released the President and CEO and the Board of Directors from liability for
the financial period 1 January-31 December 2008.
The Annual General Meeting approved a dividend of EUR 0.05 per share.
The Annual General Meeting confirmed that the following will continue on 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. 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 remuneration of
the other Members of the Board at EUR 20,000 euros per year. The 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.
The Annual General Meeting re-elected as auditor the authorised public
accounting firm KPMG Oy Ab, with the responsible auditor being Sixten Nyman APA.
Annual General Meeting approved amendments to the Articles 2, 11 and 12 of the
Articles of Association 2.
Authorisations given by the Annual General Meeting
The 2009 Annual General Meeting of Glaston Corporation authorised the Board of
Directors to decide on the acquisition of the company's own shares up to a
maximum of 7,000,000 shares. The authorisation is valid for 18 months from the
decision of the Annual General Meeting.
The Annual General Meeting also 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 such that, in exemption to the pre-emptive subscription right of
shareholders, a maximum of 7,800,000 new shares can be issued and a maximum of
7,800,000 own shares held by the company can be conveyed, but such that the
total number of shares to be issued and/or conveyed does not exceed 7,800,000.
The latter authorisation is not, however, valid on the date of these financial
statements.
Decisions of the Extraordinary Meeting of Shareholders
An Extraordinary meeting of Shareholders of Glaston Corporation, held on 8 June
2009, authorised the
Board of Directors to decide of the issuing of shares and the issuing of special
rights granting entitlement to shares, referred to in Chapter 10 Section 1 of
the Companies Act.
The number of shares to be issued under the authorisation may not exceed a total
of 25,000,000 shares. If all shares that may be issued under the authorisation
were issued, the number of shares issued would correspond to approximately 24%
of all the shares in the company.
The Board of Directors shall decide on the conditions of the issuing of shares
and of special rights granting entitlement to shares. The authorisation concerns
both the issuing of new shares as well as the conveyance of treasury shares. The
issuing of shares and of special rights granting entitlement to shares may be
carried out in exception to shareholders' pre-emptive rights.
The authorisation is effective until the next Annual General Meeting, however at
the latest until 30 June 2010, and it cancels the authorisation to decide on the
issuing of shares given by the Annual General Meeting on 17 March 2009.
Convertible bond
On 16 June 2009, the Board of Directors decided, based on the authorisation
granted by the Extraordinary Meeting of Shareholders, to issue a convertible
bond up to a maximum principal of EUR 30,000,000, divided into negotiable
promissory notes of nominal value EUR 50,000. The bonds were issued in exception
to the shareholders' pre-emptive subscription rights to investors selected by
the Board of Directors. The bond was subscribed to a total of EUR 23,750,000 and
the Board of Directors approved the subscriptions on 17 June 2009. The bonds
strengthen the company's financial position, optimise the capital structure and
facilitate investments. The terms and conditions of the convertible bond were
presented in a stock exchange release dated 16 June 2009. On 28 September 2009 a
total of 475 subscribed promissory notes were accepted for public trading on the
official list of Nasdaq OMX Helsinki Ltd.
Board of Directors' proposal for the distribution of profits
The distributable funds of Glaston Corporation, the parent of Glaston Group,
are EUR 47,632,812, of which EUR -4,577,977 represents the net 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 and from retained earnings.
EUR 47,632,812 would be left in distributable funds.
Events after the review period
Juha Liettyä B.Sc. (Eng.) was appointed as SVP of
Glaston's Services segment of 2 January 2010. Liettyä has been employed by the
company since 1986.
Uncertainties in the near future
Glaston's uncertainties and risks in the near
future are to a large extent linked to the development of the world economy. A
significant proportion of the uncertainties are beyond the company management's
control.
Due to the economic recession Glaston's market has decreased. The subdued market
has also led to overcapacity. In addition, difficulties related to customers'
financing arrangements may limit investment opportunities, in which case orders
may be postponed and those already confirmed may be cancelled. Customers'
financial situation also impacts on the collection of receivables and on credit
losses.
Raw material prices have levelled off and subcontracting capacity problems have
nearly disappeared. Subcontractors' adjustment measures to the prevailing market
situation may influence Glaston's operations.
Glaston recognised an impairment loss on goodwill of EUR 7.8 million in the 2009
result. If the international economic crisis is prolonged and the recovery of
the sector 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.
Outlook
A limited and modest recovery in Glaston's market is expected during
2010. A market recovery was already perceptible at the end of 2009 in Asia,
particularly in China. In South America demand was good throughout 2009 and this
possible trend is expected to continue. Demand for solar energy projects is also
expected to develop positively.
The priorities for operational development in 2010 are improving profitability
and completing the adjustment measures initiated in 2009. The cornerstones of
our operations will remain the architectural glass segments and the solar energy
market. We will continue purposefully to strengthen our position in China and
elsewhere in Asia.
Due to the efficiency measures performed, Glaston starts 2010 on a better
foundation. It is expected that 2010 net sales will be at least at the 2009
level and that the operating result will significantly improve.
Helsinki, 10 February 2010
Glaston Corporation
Board of Directors
Sender:
Glaston Corporation
Agneta Selroos
IR and Communications Manager
Tel. +358 10 500 6105
Glaston Corporation
Glaston Corporation is an international glass technology company. Glaston is the
global market leader in glass processing machines, and a comprehensive
One-Stop-Partner supplier to its customers. Its product range and service
network are the widest in the industry. Glaston's well-known 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 quoted on the NASDAQ OMX Helsinki Mid Cap List.
www.glaston.net
GLASTON CORPORATION
CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 31 DECEMBER 2009
These condensed financial statements are audited. Auditor's report has been
given on 10 February, 2010. 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 | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Assets | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Goodwill | 58.4 | 66.2 |
--------------------------------------------------------------------------------
| Other intangible assets | 19.7 | 22.5 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 24.7 | 35.0 |
--------------------------------------------------------------------------------
| Investments in joint ventures and associates | 0.4 | 0.9 |
--------------------------------------------------------------------------------
| Available-for-sale assets | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Loan receivables | 5.9 | - |
--------------------------------------------------------------------------------
| Deferred tax assets | 8.5 | 7.9 |
--------------------------------------------------------------------------------
| Total non-current assets | 117.9 | 132.9 |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | 37.4 | 53.9 |
--------------------------------------------------------------------------------
| Receivables | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 52.2 | 83.3 |
--------------------------------------------------------------------------------
| Assets for current tax | 3.6 | 4.4 |
--------------------------------------------------------------------------------
| Total receivables | 55.8 | 87.6 |
--------------------------------------------------------------------------------
| Cash equivalents | 15.6 | 11.5 |
--------------------------------------------------------------------------------
| Total current assets | 108.8 | 153.1 |
--------------------------------------------------------------------------------
| Total assets | 226.7 | 285.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Equity and liabilities | | |
--------------------------------------------------------------------------------
| Equity | | |
--------------------------------------------------------------------------------
| Share capital | 12.7 | 12.7 |
--------------------------------------------------------------------------------
| Share premium account | 25.3 | 25.3 |
--------------------------------------------------------------------------------
| Other reserves | 0.0 | - |
--------------------------------------------------------------------------------
| Reserve for invested unrestricted equity | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Treasury shares | -3.5 | -3.5 |
--------------------------------------------------------------------------------
| Fair value reserve | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Retained earnings and exchange differences | 87.9 | 98.2 |
--------------------------------------------------------------------------------
| Net result attributable to owners of the | -53.6 | -9.1 |
| parent | | |
--------------------------------------------------------------------------------
| Equity attributable to owners of the parent | 69.0 | 123.7 |
--------------------------------------------------------------------------------
| Non-controlling interest | 0.3 | 0.0 |
--------------------------------------------------------------------------------
| Total equity | 69.4 | 123.8 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Convertible bond | 20.1 | - |
--------------------------------------------------------------------------------
| Non-current interest-bearing liabilities | 4.7 | 16.4 |
--------------------------------------------------------------------------------
| Non-current interest-free liabilities and | 7.3 | 8.0 |
| provisions | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 6.6 | 8.4 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 38.8 | 32.9 |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | 54.4 | 53.0 |
--------------------------------------------------------------------------------
| Current provisions | 9.8 | 10.6 |
--------------------------------------------------------------------------------
| Trade and other payables | 53.2 | 63.8 |
--------------------------------------------------------------------------------
| Liabilities for current tax | 1.0 | 1.9 |
--------------------------------------------------------------------------------
| Total current liabilities | 118.5 | 129.3 |
--------------------------------------------------------------------------------
| Total liabilities | 157.3 | 162.2 |
--------------------------------------------------------------------------------
| Total equity and liabilities | 226.7 | 285.9 |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 35.8 | 68.9 | 151.8 | 270.4 |
--------------------------------------------------------------------------------
| Other operating income | 0.2 | 0.0 | 1.1 | 0.4 |
--------------------------------------------------------------------------------
| Expenses | -50.6 | -76.9 | -185.8 | -265.8 |
--------------------------------------------------------------------------------
| Share of associates and | -0.5 | 0.0 | -1.5 | 0.0 |
| joint ventures' result | | | | |
--------------------------------------------------------------------------------
| Depreciation, amortization | -13.3 | -4.7 | -20.9 | -11.2 |
| and impairment | | | | |
--------------------------------------------------------------------------------
| Operating profit / loss | -28.4 | -12.6 | -55.3 | -6.1 |
--------------------------------------------------------------------------------
| Gains from assets held for | - | 0.0 | - | 0.1 |
| sale | | | | |
--------------------------------------------------------------------------------
| Other financial items, net | -0.7 | -2.2 | -2.3 | -2.1 |
--------------------------------------------------------------------------------
| Result before income taxes | -29.0 | -14.8 | -57.6 | -8.1 |
--------------------------------------------------------------------------------
| Income taxes | 2.2 | 2.5 | 4.0 | -1.1 |
--------------------------------------------------------------------------------
| Profit / loss for the period | -26.8 | -12.3 | -53.6 | -9.2 |
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Non-controlling interests | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Owners of the parent | -26.8 | -12.3 | -53.6 | -9.1 |
--------------------------------------------------------------------------------
| Total | -26.8 | -12.3 | -53.6 | -9.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR, | -0.34 | -0.16 | -0.68 | -0.12 |
| basic | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | -0.34 | -0.16 | -0.68 | -0.12 |
| diluted | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit / loss, as | -79.2 | -18.3 | -36.4 | -2.3 |
| % of net sales | | | | |
--------------------------------------------------------------------------------
| Profit / loss for the | -74.9 | -17.8 | -35.3 | -3.4 |
| period, as % of net sales | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-recurring items included | -17.3 | -12.3 | -21.6 | -12.3 |
| in operating profit / loss | | | | |
--------------------------------------------------------------------------------
| Operating profit / loss, | -11.0 | -0.3 | -33.6 | 6.2 |
| non-recurring items excluded | | | | |
--------------------------------------------------------------------------------
| Operating profit / loss, | -30.8 | -0.4 | -22.2 | 2.3 |
| non-recurring items | | | | |
| excluded, as % of net sales | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME
--------------------------------------------------------------------------------
| | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit / loss for the period | -26.8 | -12.3 | -53.6 | -9.2 |
--------------------------------------------------------------------------------
| Other comprehensive income | | | | |
--------------------------------------------------------------------------------
| Total exchange differences on | 0.1 | 0.1 | -0.7 | 0.7 |
| translating foreign operations | | | | |
--------------------------------------------------------------------------------
| Fair value changes of | - | 0.0 | - | 0.0 |
| effective cash flow hedges | | | | |
| reclassified in profit or loss | | | | |
--------------------------------------------------------------------------------
| Fair value changes of | 0.0 | 0.0 | 0.0 | 0.0 |
| available-for-sale assets | | | | |
--------------------------------------------------------------------------------
| Other reclassifications | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Income tax on other | 0.0 | 0.0 | 0.0 | 0.0 |
| comprehensive income | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income for | 0.0 | 0.0 | -0.7 | 0.7 |
| the reporting period, net of | | | | |
| tax | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income for | -26.9 | -12.2 | -54.4 | -8.5 |
| the reporting period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | |
--------------------------------------------------------------------------------
| Non-controlling interest | -0.1 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Owners of the parent | -26.8 | -12.2 | -54.3 | -8.5 |
--------------------------------------------------------------------------------
| Total comprehensive income for | -26.9 | -12.2 | -54.4 | -8.5 |
| the reporting period | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Cash flows from operating activities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in net working | -29.8 | 7.2 |
| capital | | |
--------------------------------------------------------------------------------
| Change in net working capital | 28.6 | -30.4 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | -1.2 | -23.3 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| Business combinations | -0.5 | 0.7 |
--------------------------------------------------------------------------------
| Other purchases of non-current assets | -6.5 | -14.5 |
--------------------------------------------------------------------------------
| Investment in joint ventures | -2.0 | - |
--------------------------------------------------------------------------------
| Other | 0.1 | - |
--------------------------------------------------------------------------------
| Proceeds from sale of non-current assets | 1.4 | 0.4 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -7.5 | -13.4 |
--------------------------------------------------------------------------------
| Cash flow before financing | -8.7 | -36.7 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| Increase in non-current liabilities | 23.8 | 17.5 |
--------------------------------------------------------------------------------
| Decrease in non-current liabilities | -11.9 | - |
--------------------------------------------------------------------------------
| Changes in non-current loan receivables | - | 0.3 |
| (increase - / decrease +) | | |
--------------------------------------------------------------------------------
| Increase in short-term financing | 142.4 | 395.1 |
--------------------------------------------------------------------------------
| Decrease in short-term financing | -139.3 | -367.3 |
--------------------------------------------------------------------------------
| Dividends paid | -3.9 | -7.8 |
--------------------------------------------------------------------------------
| Other financing | 1.2 | 0.0 |
--------------------------------------------------------------------------------
| Net cash used in financing activities | 12.3 | 37.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect of exchange rate changes | 0.4 | -1.0 |
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents | 4.0 | 0.1 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the beginning of | 11.5 | 11.4 |
| period | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end of | 15.6 | 11.5 |
| period | | |
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents | 4.0 | 0.1 |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
| EUR million | Share | Share | Other | Reserve | Treasury | Fair |
| | capita | premium | reserves | for | shares | value |
| | l | account | | invested | | re-ser |
| | | | | unrestr. | | ve |
| | | | | equity | | |
--------------------------------------------------------------------------------
| Equity at 1 | 12.7 | 25.3 | - | 0.3 | -3.9 | - |
| January, 2008 | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | - | - | 0.0 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Disposal of | - | - | - | -0.1 | 0.4 | - |
| treasury shares | | | | | | |
--------------------------------------------------------------------------------
| Tax effect of | - | - | - | 0.0 | - | - |
| net income | | | | | | |
| recognized | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Equity at 31 | 12.7 | 25.3 | - | 0.2 | -3.5 | 0.0 |
| December, 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Share | Other | Reserve | Treasury | Fair |
| | capital | premiu | reserves | for | shares | value |
| | | m | | invested | | reserve |
| | | accoun | | unrest. | | |
| | | t | | equity | | |
--------------------------------------------------------------------------------
| 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 | 0.0 | - |
| in treasury | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Other changes | - | - | 0.0 | - | - | - |
--------------------------------------------------------------------------------
| Tax effect of | - | - | - | - | - | - |
| net income | | | | | | |
| recognized | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Equity at 31 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 |
| December, 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Hedging | Retaine | Exch. | Equity | Non-contr | Total |
| | reserve | d | differ | attrib. | . | equity |
| | | earning | -ences | to | interest | |
| | | s | | owners | | |
| | | | | of the | | |
| | | | | parent | | |
--------------------------------------------------------------------------------
| Equity at 1 | 0.0 | 106.8 | -1.2 | 139.9 | 0.0 | 139.9 |
| January, 2008 | | | | | | |
--------------------------------------------------------------------------------
| Total | 0.0 | -9.2 | 0.7 | -8.5 | 0.0 | -8.5 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Disposal of | - | - | - | 0.3 | - | 0.3 |
| treasury | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Tax effect of | - | - | - | 0.0 | - | 0.0 |
| net income | | | | | | |
| recognized | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | -0.2 | - | -0.2 | - | -0.2 |
| incentive plan | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | 0.0 | - | 0.0 | - | 0.0 |
| incentive | | | | | | |
| plan, tax | | | | | | |
| effect | | | | | | |
--------------------------------------------------------------------------------
| Reversal of | - | 0.0 | - | 0.0 | - | 0.0 |
| unpaid | | | | | | |
| dividends | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | - | -7.8 | - | -7.8 | - | -7.8 |
--------------------------------------------------------------------------------
| Equity at 31 | 0.0 | 89.6 | -0.5 | 123.7 | 0.1 | 123.8 |
| December, 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Hedging | Retaine | Exch. | Equity | Non-cont | Total |
| | reserve | d | differ- | attrib. | r. | equity |
| | | earning | ences | to | interest | |
| | | s | | owners | | |
| | | | | of the | | |
| | | | | parent | | |
--------------------------------------------------------------------------------
| 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 | - | 0.1 | - | 0.1 | 0.3 | 0.4 |
| in | | | | | | |
| non-controllin | | | | | | |
| g interest | | | | | | |
--------------------------------------------------------------------------------
| Other changes | - | - | - | - | - | - |
| in treasury | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Other changes | - | 0.0 | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Tax effect of | - | - | - | - | - | - |
| net income | | | | | | |
| recognized | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| 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 | - | 0.0 | - | 0.0 | - | 0.0 |
| unpaid | | | | | | |
| dividends | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | - | -3.9 | - | -3.9 | - | -3.9 |
--------------------------------------------------------------------------------
| Equity at 31 | - | 35.6 | -1.3 | 69.0 | 0.3 | 69.4 |
| December, 2009 | | | | | | |
--------------------------------------------------------------------------------
KEY RATIOS
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA, as % of net sales (1 | -22.7 | 1.9 | |
--------------------------------------------------------------------------------
| Operating profit / loss (EBIT), as % | -36.4 | -2.3 | |
| of net sales | | | |
--------------------------------------------------------------------------------
| Net result, as % of net sales | -35.3 | -3.4 | |
--------------------------------------------------------------------------------
| Gross capital expenditure, EUR | 8.5 | 18.4 | |
| million | | | |
--------------------------------------------------------------------------------
| Gross capital expenditure, as % of | 5.6 | 6.8 | |
| net sales | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 33.1 | 45.8 | |
--------------------------------------------------------------------------------
| Gearing, % | 114.3 | 56.1 | |
--------------------------------------------------------------------------------
| Net gearing, % | 91.9 | 46.8 | |
--------------------------------------------------------------------------------
| Net interest-bearing debt, EUR | 63.7 | 57.9 | |
| million | | | |
--------------------------------------------------------------------------------
| Capital employed, end of period, EUR | 148.6 | 193.2 | |
| million | | | |
--------------------------------------------------------------------------------
| Return on equity, %, annualized | -55.5 | -7.0 | |
--------------------------------------------------------------------------------
| Return on capital employed, %, | -32.1 | -2.3 | |
| annualized | | | |
--------------------------------------------------------------------------------
| Number of personnel, average | 1,344 | 1,519 | |
--------------------------------------------------------------------------------
| Number of personnel, end of period | 1,160 | 1,541 | |
--------------------------------------------------------------------------------
(1 EBITDA = Operating profit / loss + depreciation, amortization and impairment.
--------------------------------------------------------------------------------
| PER SHARE DATA | | | |
--------------------------------------------------------------------------------
| | | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| | Number of shares, end of period, treasury | 78,511 | 78,540 |
| | shares excluded (1,000) | | |
--------------------------------------------------------------------------------
| | Number of shares, average, treasury shares | 78,522 | 78,507 |
| | excluded (1,000) | | |
--------------------------------------------------------------------------------
| | Number of shares, diluted by the convertible | 89,143 | - |
| | bond, average, treasury shares excluded | | |
| | (1,000) | | |
--------------------------------------------------------------------------------
| | EPS, basic, EUR | -0.68 | -0.12 |
--------------------------------------------------------------------------------
| | EPS, diluted, EUR | -0.68 | -0.12 |
--------------------------------------------------------------------------------
| | Equity attributable to owners of the parent | 0.88 | 1.58 |
| | per share, EUR | | |
--------------------------------------------------------------------------------
| | Dividend per share, EUR (* | 0.00 | 0.05 |
--------------------------------------------------------------------------------
| | Dividend payout ratio, % | - | -43.0 |
--------------------------------------------------------------------------------
| | Dividend yield | - | 5.5 |
--------------------------------------------------------------------------------
| | Price per earnings per share (P/E) ratio | -1.6 | -7.8 |
--------------------------------------------------------------------------------
| | Price per equity attributable to owners of | 1.23 | 0.58 |
| | the parent per share | | |
--------------------------------------------------------------------------------
| | Market capitalization, EUR million | 84.8 | 71.5 |
--------------------------------------------------------------------------------
| | Share turnover, % (number of shares traded, | 9.0 | 5.1 |
| | % of the average number of shares) | | |
--------------------------------------------------------------------------------
| | Number of shares traded, (1,000) | 7,033 | 3,965 |
--------------------------------------------------------------------------------
| | Closing price of the share, EUR | 1.08 | 0.91 |
--------------------------------------------------------------------------------
| | Highest quoted price, EUR | 1.44 | 3.33 |
--------------------------------------------------------------------------------
| | Lowest quoted price, EUR | 0.92 | 0.87 |
--------------------------------------------------------------------------------
| | Volume-weighted average quoted price, EUR | 1.18 | 2.07 |
--------------------------------------------------------------------------------
(* 2009: The proposal of the Board of Directors.
DEFINITIONS OF KEY RATIOS
Financial ratios
EBITDA = Profit / loss before depreciation, amortization and impairment, share
of joint ventures' and associates' results included
Operating profit (EBIT) = Profit / loss after depreciation, amortization and
impairment, share of joint ventures' and associates' results included
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)
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, 2009:
- IAS 23 (revised) Borrowing Costs
- IFRS 8 Operating Segments
- Amendments to IAS 32 Financial Instruments: Presentation and IAS 1
Presentation of Financial Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation
- Amendment to IAS 39 Financial Instruments: Recognition and Measurement -
Eligible Hedged Items
- Amendments to IFRS 7 Financial Instruments: Disclosures - Improving
Disclosures about Financial Instruments
- Amendments to IFRIC 9 and IAS 39: Embedded Derivatives
In addition, Glaston applies the annual Improvements to IFRSs issued in May
2008.
Applying IFRS 8 did not have any material effect on the financial information of
Glaston.
Applying revised IAS Borrowing Costs changed Glaston's accounting principles
from 1 January, 2009. From that date on the borrowing costs that are directly
attributable to the acquisition, construction or production of a qualifying
asset are capitalized to the acquisition cost of the asset. The capitalization
applies mainly to property, plant and equipment and intangible assets.
Other new or amended standards or interpretations applicable from 1 January,
2009 are not material for Glaston Group.
Glaston will apply the following new or revised or amended standards and
interpretations 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 will apply 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 will be
recognized in profit or loss and not capitalized as a part of the purchase
consideration, as currently is done. In addition, all consideration transferred
in the business combination will be measured at the acquisition-date fair value,
and liabilities classified as contingent consideration will subsequently be
measured at fair value with any resulting gain or loss recognized in profit or
loss. For each business combination it will be 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 will have an effect on 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 will be recognized in equity, if there is no
change in control. These transactions will not result in goodwill or gains or
losses. If the control is lost, the possible remaining ownership share will be
measured at fair value and the resulting gain or loss will be recognized in
profit or loss. Also, in accordance with the revised standard, total
comprehensive income will be 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 will change the allocation of goodwill in Glaston. Currently goodwill is
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
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments can have an
effect on Glaston's result, if Glaston's convertible bond is converted to equity
instruments.
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, 2013:
- IFRS 9 Financial Instruments
DIVESTMENTS
Glaston's subsidiary Tamglass Glass Processing Ltd. sold in March its
insulated and architectural glass processing operations to INTERPANE Glass Oy.
INTERPANE Glass Oy began its operations on 1 April, 2009. The divested
operations had net sales of approximately EUR 14 million in 2008 and 93
employees at the end of March. The personnel were transferred to INTERPANE Glass
Oy.
The transaction was an asset deal, consisting of, among others, tangible assets
and inventory. The deal was financed mainly through vendor financing given by
Glaston. Glaston has also invested EUR 2.0 million in the equity of INTERPANE
Glass Oy. In addition, Glaston is committed to invest additional EUR 0.7 million
in INTERPANE's equity. Also the other party of the transaction is committed to
make additional investments in INTERPANE's equity.
INTERPANE Glass Oy is a company owned jointly by Georg F. Hesselbach through his
company A A A Glass & Design Finland Oy, and a subsidiary of Glaston
Corporation. The shareholders of INTERPANE Glass Oy have entered into a
shareholders' agreement which incorporates put and call options enabling the
shareholders to rearrange their ownership shares in the company in the future.
INTERPANE Glass Oy is a joint venture of Glaston, and it is consolidated in
Glaston's consolidated financial statements using the equity method.
CHANGES IN JOINT VENTURES
The Chinese company Glaston Tools (Sanhe) Co., Ltd. was consolidated in 2008 as
a joint venture using the equity method and not as a subsidiary despite of the
70 per cent ownership of Glaston, because Glaston was not considered to have
control of the company. From 1 January, 2009, Glaston Tools (Sanhe) Co., Ltd.
has been consolidated as a subsidiary as Glaston has gained control of the
company. There have not been changes in the ownership of the company.
INTERPANE Glass Oy became a joint venture of Glaston on 31 March, 2009.
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 tools manufacturing.
Services segment includes maintenance and service of glass processing machines,
sale of spare parts and tools. Services segment also provides service to a
customer by operating of glass processing factory in Akaa, Finland, on behalf of
the customer.
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 in 2009 also unallocated share of joint venture's result.
Glaston's chief operating decision maker is the CEO of Glaston Corporation, with
the help of the Group's Executive Management Group. The segment information
reported to the the chief operating decision maker includes segment revenue (net
sales), operating result, orders received and order book as well as operative
net working capital. Operative net working capital includes external trade
receivables, inventory, external trade payables and advance payments
received.
--------------------------------------------------------------------------------
| Machines | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| External sales | 19.0 | 43.7 | 81.7 | 167.6 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.1 | 0.3 | 0.6 | 0.9 |
--------------------------------------------------------------------------------
| Net sales | 19.1 | 43.9 | 82.2 | 168.5 |
--------------------------------------------------------------------------------
| Share of associates' and joint | - | 0.0 | - | 0.0 |
| ventures' results | | | | |
--------------------------------------------------------------------------------
| EBIT excluding non-recurring | -8.3 | 0.4 | -22.9 | 5.1 |
| items | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. non-recurring items | -43.2 | 0.8 | -27.9 | 3.0 |
--------------------------------------------------------------------------------
| Non-recurring items | -12.1 | -9.5 | -15.9 | -9.5 |
--------------------------------------------------------------------------------
| EBIT | -20.4 | -9.1 | -38.8 | -4.4 |
--------------------------------------------------------------------------------
| EBIT-% | -106.7 | -20.7 | -47.2 | -2.6 |
--------------------------------------------------------------------------------
| Net working capital | | | 29.9 | 64.1 |
--------------------------------------------------------------------------------
| Number of personnel, average | | | 759 | 804 |
--------------------------------------------------------------------------------
| Number of personnel, end of | | | 674 | 841 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Services | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| External sales | 10.6 | 18.7 | 46.2 | 74.8 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.4 | 0.5 | 1.9 | 1.2 |
--------------------------------------------------------------------------------
| Net sales | 11.0 | 19.2 | 48.1 | 76.0 |
--------------------------------------------------------------------------------
| EBIT excluding non-recurring | 0.2 | 1.0 | -1.9 | 4.9 |
| items | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. non-recurring | 1.5 | 5.1 | -4.0 | 6.5 |
| items | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | -2.5 | -2.2 | -2.8 | -2.2 |
--------------------------------------------------------------------------------
| EBIT | -2.3 | -1.3 | -4.7 | 2.7 |
--------------------------------------------------------------------------------
| EBIT-% | -21.2 | -6.5 | -9.7 | 3.5 |
--------------------------------------------------------------------------------
| Net working capital | | | 14.3 | 22.7 |
--------------------------------------------------------------------------------
| Number of personnel, average | | | 310 | 434 |
--------------------------------------------------------------------------------
| Number of personnel, end of | | | 228 | 414 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Software Solutions | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| External sales | 6.3 | 6.6 | 23.9 | 28.1 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net sales | 6.3 | 6.6 | 23.9 | 28.2 |
--------------------------------------------------------------------------------
| Share of associates' and joint | 0.0 | 0.0 | 0.0 | 0.0 |
| ventures' results | | | | |
--------------------------------------------------------------------------------
| EBIT excluding non-recurring | -0.2 | 0.1 | 0.4 | 3.7 |
| items | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. non-recurring | -2.9 | 1.8 | 1.7 | 13.3 |
| items | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | -1.5 | -0.6 | -1.7 | -0.6 |
--------------------------------------------------------------------------------
| EBIT | -1.6 | -0.4 | -1.3 | 3.2 |
--------------------------------------------------------------------------------
| EBIT-% | -26.2 | -6.5 | -5.5 | 11.3 |
--------------------------------------------------------------------------------
| Net working capital | | | 5.8 | 5.8 |
--------------------------------------------------------------------------------
| Number of personnel, average | | | 247 | 255 |
--------------------------------------------------------------------------------
| Number of personnel, end of | | | 234 | 261 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Glaston Group | | | | |
--------------------------------------------------------------------------------
| EUR million | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Machines | 19.1 | 43.9 | 82.2 | 168.5 |
--------------------------------------------------------------------------------
| Services | 11.0 | 19.2 | 48.1 | 76.0 |
--------------------------------------------------------------------------------
| Software Solutions | 6.3 | 6.6 | 23.9 | 28.2 |
--------------------------------------------------------------------------------
| Other and intersegment sales | -0.6 | -0.8 | -2.4 | -2.2 |
--------------------------------------------------------------------------------
| Glaston Group total | 35.8 | 68.9 | 151.8 | 270.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT | | | | |
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Machines | -8.3 | 0.4 | -22.9 | 5.1 |
--------------------------------------------------------------------------------
| Services | 0.2 | 1.0 | -1.9 | 4.9 |
--------------------------------------------------------------------------------
| Software Solutions | -0.2 | 0.1 | 0.4 | 3.7 |
--------------------------------------------------------------------------------
| Other and eliminations | -2.7 | -1.8 | -9.3 | -7.6 |
--------------------------------------------------------------------------------
| EBIT excluding non-recurring | -11.0 | -0.3 | -33.6 | 6.2 |
| items | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | -17.3 | -12.3 | -21.6 | -12.3 |
--------------------------------------------------------------------------------
| EBIT | -28.4 | -12.6 | -55.3 | -6.1 |
--------------------------------------------------------------------------------
| Net financial items | -0.7 | -2.2 | -2.3 | -2.0 |
--------------------------------------------------------------------------------
| Result before income taxes and | -29.0 | -14.8 | -57.6 | -8.1 |
| non-controlling interest | | | | |
--------------------------------------------------------------------------------
| Income taxes | 2.2 | 2.5 | 4.0 | -1.1 |
--------------------------------------------------------------------------------
| Result | -26.8 | -12.3 | -53.6 | -9.2 |
--------------------------------------------------------------------------------
| Number of personnel, average | | | 1,344 | 1,519 |
--------------------------------------------------------------------------------
| Number of personnel, end of | | | 1,160 | 1,541 |
| period | | | | |
--------------------------------------------------------------------------------
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).
Non-recurring items of 2008, in total EUR 12.3 million, consist of expenses
arising from rationalization measures as well as non-recurring costs for
agreements and doubtful receivables from previous years. In addition, the
non-recurring items include impairment losses of assets.
--------------------------------------------------------------------------------
| Segment assets | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Machines | 53.5 | 90.9 |
--------------------------------------------------------------------------------
| Services | 18.4 | 25.4 |
--------------------------------------------------------------------------------
| Software Solutions | 6.5 | 7.0 |
--------------------------------------------------------------------------------
| Other | 0.2 | 0.0 |
--------------------------------------------------------------------------------
| Total segment assets | 78.7 | 123.3 |
--------------------------------------------------------------------------------
| Other assets | 147.9 | 162.6 |
--------------------------------------------------------------------------------
| Total assets | 226.7 | 285.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment liabilities | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Machines | 23.6 | 26.8 |
--------------------------------------------------------------------------------
| Services | 4.1 | 2.7 |
--------------------------------------------------------------------------------
| Software Solutions | 0.7 | 1.2 |
--------------------------------------------------------------------------------
| Other | 0.2 | 0.4 |
--------------------------------------------------------------------------------
| Total segment liabilities | 28.7 | 31.2 |
--------------------------------------------------------------------------------
| Other liabilities | 128.6 | 131.0 |
--------------------------------------------------------------------------------
| Total liabilities | 157.3 | 162.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net working capital | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Machines | 29.9 | 64.1 |
--------------------------------------------------------------------------------
| Services | 14.3 | 22.7 |
--------------------------------------------------------------------------------
| Software Solutions | 5.8 | 5.8 |
--------------------------------------------------------------------------------
| Other | 0.0 | -0.4 |
--------------------------------------------------------------------------------
| Total Glaston Group | 50.0 | 92.1 |
--------------------------------------------------------------------------------
In segment reporting net working capital consists of inventory, external trade
receivables and trade payables and advances received.
Order intake has been restated to include also order intake of the tools
business.
--------------------------------------------------------------------------------
| Order intake | | |
--------------------------------------------------------------------------------
| EUR million | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Machines | 88.5 | 144.4 |
--------------------------------------------------------------------------------
| Services | 42.8 | 72.3 |
--------------------------------------------------------------------------------
| Software Solutions | 10.6 | 13.9 |
--------------------------------------------------------------------------------
| Total Glaston Group | 141.9 | 230.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by geographical areas | | |
--------------------------------------------------------------------------------
| | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| EMEA | 104.8 | 178.0 |
--------------------------------------------------------------------------------
| Asia | 14.2 | 36.5 |
--------------------------------------------------------------------------------
| America | 32.7 | 56.0 |
--------------------------------------------------------------------------------
| Total | 151.8 | 270.4 |
--------------------------------------------------------------------------------
NET SALES, OPERATING RESULT AND ORDER BOOK BY QUARTER
EUR million
--------------------------------------------------------------------------------
| Machines | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| External | 19.0 | 14.7 | 27.4 | 20.5 | 43.7 | 38.0 | 46.3 | 39.6 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Intersegment | 0.1 | 0.0 | -0.3 | 0.7 | 0.3 | 0.2 | 0.3 | 0.2 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 19.1 | 14.7 | 27.1 | 21.2 | 43.9 | 38.2 | 46.6 | 39.7 |
--------------------------------------------------------------------------------
| Share of | - | - | - | - | 0.0 | 0.0 | 0.0 | 0.0 |
| associates' | | | | | | | | |
| and joint | | | | | | | | |
| ventures' | | | | | | | | |
| results | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -8.3 | -4.9 | -4.5 | -5.2 | 0.4 | -0.4 | 3.1 | 2.0 |
| excluding | | | | | | | | |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | -43.2 | -33. | -16.7 | -24.7 | 0.8 | -1.0 | 6.7 | 5.0 |
| non-recurring | | 1 | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | -12.1 | - | -3.8 | - | -9.5 | - | - | - |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -20.4 | -4.9 | -8.3 | -5.2 | -9.1 | -0.4 | 3.1 | 2.0 |
--------------------------------------------------------------------------------
| EBIT-% | -106.7 | -33. | -30.6 | -24.7 | -20.7 | -1.0 | 6.7 | 5.0 |
| | | 1 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Services | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| External sales | 10.6 | 11.0 | 11.9 | 12.8 | 18.7 | 20.0 | 19.9 | 16.2 |
--------------------------------------------------------------------------------
| Intersegment | 0.4 | 0.7 | 0.6 | 0.3 | 0.5 | 0.2 | 0.3 | 0.1 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 11.0 | 11.6 | 12.4 | 13.0 | 19.2 | 20.2 | 20.2 | 16.4 |
--------------------------------------------------------------------------------
| EBIT excluding | 0.2 | -0.1 | -0.2 | -1.7 | 1.0 | 2.0 | 1.4 | 0.5 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | 1.5 | -0.8 | -2.0 | -13. | 5.1 | 10.0 | 7.2 | 2.9 |
| non-recurring | | | | 3 | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | -2.5 | - | -0.3 | - | -2.2 | - | - | - |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -2.3 | -0.1 | -0.5 | -1.7 | -1.3 | 2.0 | 1.4 | 0.5 |
--------------------------------------------------------------------------------
| EBIT-% | -21.2 | -0.8 | -4.1 | -13. | -6.5 | 10.0 | 7.2 | 2.9 |
| | | | | 3 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Software | | | | | | | | |
| Solutions | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12 | 7-9/ | 4-6/ | 1-3/ |
| | 2009 | 2009 | 2009 | 2009 | / | 2008 | 2008 | 2008 |
| | | | | | 2008 | | | |
--------------------------------------------------------------------------------
| External sales | 6.3 | 5.8 | 5.9 | 6.0 | 6.6 | 7.8 | 6.4 | 7.3 |
--------------------------------------------------------------------------------
| Intersegment | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 6.3 | 5.8 | 5.9 | 6.0 | 6.6 | 7.8 | 6.4 | 7.3 |
--------------------------------------------------------------------------------
| Share of | 0.0 | 0.0 | - | - | 0.0 | - | - | - |
| associates' and | | | | | | | | |
| joint ventures' | | | | | | | | |
| results | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT excluding | -0.2 | 0.5 | 0.5 | -0.4 | 0.1 | 1.4 | 1.2 | 1.0 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | -2.9 | 7.7 | 8.7 | -6.0 | 1.8 | 18.1 | 19.3 | 13.2 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | -1.5 | - | -0.3 | - | -0.6 | - | - | - |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -1.6 | 0.5 | 0.2 | -0.4 | -0.4 | 1.4 | 1.2 | 1.0 |
--------------------------------------------------------------------------------
| EBIT-% | -26.2 | 7.7 | 4.1 | -6.0 | -6.5 | 18.1 | 19.3 | 13.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Machines | 19.1 | 14.7 | 27.1 | 21.2 | 43.9 | 38.2 | 46.6 | 39.7 |
--------------------------------------------------------------------------------
| Services | 11.0 | 11.6 | 12.4 | 13.0 | 19.2 | 20.2 | 20.2 | 16.4 |
--------------------------------------------------------------------------------
| Software | 6.3 | 5.8 | 5.9 | 6.0 | 6.6 | 7.8 | 6.4 | 7.3 |
| Solutions | | | | | | | | |
--------------------------------------------------------------------------------
| Other and | -0.6 | -0.7 | -0.2 | -1.0 | -0.8 | -0.4 | -0.6 | -0.4 |
| intersegmen | | | | | | | | |
| t sales | | | | | | | | |
--------------------------------------------------------------------------------
| Glaston | 35.8 | 31.5 | 45.2 | 39.2 | 68.9 | 65.8 | 72.6 | 63.1 |
| Group total | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Machines | -8.3 | -4.9 | -4.5 | -5.2 | 0.4 | -0.4 | 3.1 | 2.0 |
--------------------------------------------------------------------------------
| Services | 0.2 | -0.1 | -0.2 | -1.7 | 1.0 | 2.0 | 1.4 | 0.5 |
--------------------------------------------------------------------------------
| Software | -0.2 | 0.5 | 0.5 | -0.4 | 0.1 | 1.4 | 1.2 | 1.0 |
| Solutions | | | | | | | | |
--------------------------------------------------------------------------------
| Other and | -2.7 | -2.9 | -1.9 | -1.6 | -1.8 | -2.0 | -2.0 | -1.8 |
| elimination | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -11.0 | -7.4 | -6.2 | -9.0 | -0.3 | 1.1 | 3.8 | 1.6 |
| excluding | | | | | | | | |
| non-recurri | | | | | | | | |
| ng items | | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurri | -17.3 | - | -4.3 | - | -12.3 | - | - | - |
| ng items | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -28.4 | -7.4 | -10.5 | -9.0 | -12.6 | 1.1 | 3.8 | 1.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book | 31.12 | 30.9 | 30.6. | 31.3. | 31.12 | 30.9. | 30.6. | 31.3. |
| | . | . | 2009 | 2009 | . | 2008 | 2008 | 2008 |
| | 2009 | 2009 | | | 2008 | | | |
--------------------------------------------------------------------------------
| Machines | 39.8 | 35.8 | 30.8 | 38.2 | 47.3 | 64.8 | 78.0 | 79.8 |
--------------------------------------------------------------------------------
| Services | 1.6 | 1.6 | 2.3 | 4.0 | 11.6 | 15.0 | 16.2 | 7.5 |
--------------------------------------------------------------------------------
| Software | 4.1 | 3.5 | 4.0 | 3.7 | 3.5 | 4.5 | 6.0 | 9.5 |
| Solutions | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 45.5 | 40.9 | 37.1 | 45.9 | 62.5 | 84.4 | 100.3 | 96.9 |
| Glaston | | | | | | | | |
| Group | | | | | | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Mortgages and pledges | | |
--------------------------------------------------------------------------------
| On own behalf | 130.8 | 0.2 |
--------------------------------------------------------------------------------
| Guarantees | | |
--------------------------------------------------------------------------------
| On own behalf | 0.6 | 0.8 |
--------------------------------------------------------------------------------
| On behalf of others | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Lease obligations | 13.4 | 19.0 |
--------------------------------------------------------------------------------
| Repurchase obligations | 0.2 | 0.8 |
--------------------------------------------------------------------------------
| Capital commitments in relation to interests | 0.7 | - |
| in joint ventures | | |
--------------------------------------------------------------------------------
A customer of the US subsidiary Glaston USA, Inc. had made a claim of
approximately USD 22 million due to a sale of a machine in 2004. The arbitration
proceeding initiated by the customer against the US subsidiary Glaston USA, Inc.
was concluded in April. Majority of the customer's claim were denied. The matter
has no material effect on Glaston's 2009 result, because it was included in 2008
result as a non-recurring item. but the compensation paid by Glaston has
affected Glaston's cash flow.
The Group recognized a tax refund of approximately EUR 2 million in 2006 after
having received an affirmative decision according to which the expenses arising
from the management incentive scheme of the Group are deductible in taxation.
The tax authorities of the Tax Office for Major Corporations appealed against
the decision to the Administrative Court of Helsinki. Administrative Court of
Helsinki decided the case on Glaston's favour in January 2009. The decision is
final, since no appeal was made.
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 | 31.12.200 | | 31.12.2008 | |
| | 9 | | | |
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| | Nominal | Fair | Nominal | Fair value |
| | value | value | value | |
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| Currency derivatives | | | | |
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| Currency forwards | 2.6 | -0.1 | 6.2 | -0.1 |
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Derivative instruments are used only for hedging purposes. Nominal
values of derivative instruments do not necessarily correspond with
the 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
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| EUR million | | |
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| Changes in property, plant and equipment | 1-12/2009 | 1-12/2008 |
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| Carrying amount at beginning of the period | 35.0 | 32.5 |
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| Additions | 1.2 | 11.4 |
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| Disposals | -6.2 | -0.2 |
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| Depreciation and amortization | -4.1 | -4.8 |
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| Impairment losses and reversals of | -1.2 | -0.8 |
| impairment losses | | |
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| Reclassification and other changes | -0.1 | -3.3 |
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| Exchange differences | 0.0 | 0.3 |
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| Carrying amount at end of the period | 24.7 | 35.0 |
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At the end of the review period, Glaston Group did not have contractual
commitments to acquire property, plant and equipment.
SHAREHOLDER INFORMATION
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| | Largest shareholders 31 December, 2009 | |
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| | | Number of | % of |
| | | shares | shares |
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| | Shareholder | | and |
| | | | votes |
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| 1 | GWS Trade Oy | 13,446,700 | 16.95 |
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| 2 | Oy G.W.Sohlberg Ab | 12,819,400 | 16.16 |
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| 3 | Sumelius Birgit | 3,642,600 | 4.59 |
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| 4 | Society of Swedish Literature in Finland | 2,245,000 | 2.83 |
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| 5 | Investsum Oy | 1,820,000 | 2.29 |
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| 6 | Suutarinen Helena Kuolinpesä | 1,802,400 | 2.27 |
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| 7 | Von Christierson Charlie | 1,600,000 | 2.02 |
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| 8 | Investment fund Aktia Capital | 1,484,650 | 1.87 |
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| 9 | Sumelius Bjarne Henning | 1,374,840 | 1.73 |
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| 10 | Sumelius-Koljonen Barbro | 1,206,875 | 1.52 |
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| | Total 10 largest shareholders | 41,442,465 | 52.23 |
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| | Other shareholders | 37,832,335 | 47.77 |
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| | Not in the book-entry securities system | 75,200 | 0.00 |
| | (in joint account) | | |
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| | Total | 79,350,000 | 100.00 |
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| | Treasury shares | -838,582 | 1.06 |
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| | Total excluding treasury shares | 78,511,418 | |
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| Ownership distribution 31 December, 2009 |
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| | Shares total | % of shares |
| | | and votes |
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| Corporations | 33,058,556 | 41.7% |
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| Financial and insurance corporations | 2,525,347 | 3.2% |
--------------------------------------------------------------------------------
| Non-profit institutions | 3,711,275 | 4.7% |
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| Households | 34,584,294 | 43.6% |
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| Foreign countries | 4,432,961 | 5.6% |
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| General government | 242,161 | 0.3% |
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| Total | 78,554,594 | 99.0% |
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| Nominee registered | 720,206 | 0.9% |
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| Total | 79,274,800 | 99.9% |
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| Not in the book-entry securities system (in | 75,200 | 0.1% |
| joint account) | | |
--------------------------------------------------------------------------------
| Total | 79,350,000 | 100.0% |
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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 related party transactions whose terms
would differ from the terms in transactions with third parties.
Management remuneration
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| Remuneration of the Board of Directors | | 2008 | |
| 2009 | | | |
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| EUR | annual | meeting | annual fee | meeting |
| | fee | fee | | fee |
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| Andreas Tallberg, Chairman | 40,000 | 8,000 | 40,000 | 7,200 |
| of the Board of Directors | | | | |
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| Christer Sumelius, Deputy | 30,000 | 5,000 | 30,000 | 4,500 |
| Chairman of the Board of | | | | |
| Directors | | | | |
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| Claus von Bonsdorff | 20,000 | 5,000 | 20,000 | 4,500 |
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| Klaus Cawén | 20,000 | 5,000 | 20,000 | 4,500 |
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| Carl-Johan Rosenbröijer | 20,000 | 5,000 | 20,000 | 4,500 |
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| Mikael Mäkinen (* | 5,000 | 1,000 | 15,000 | 3,000 |
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| Jan Lång (** | 20,000 | 4,500 | 15,000 | 3,000 |
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| Jan Hasselblatt (*** | - | - | 5,000 | 1,500 |
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| Total | 155,000 | 33,500 | 165,000 | 32,700 |
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| | | | | |
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| (* Member of the Board of Directors from 11 March, 2008 until 17 March, |
| 2009 |
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| (** Member of the Board of Directors from 11 March, 2008 |
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| (*** Member of the Board of Directors until 11 March, 2008 |
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| | | | | |
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--------------------------------------------------------------------------------
| | | 2009 | 2008 | |
--------------------------------------------------------------------------------
| | EUR | | | |
--------------------------------------------------------------------------------
| | CEO Arto Metsänen (* | | | |
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| | Salaries | 105,580 | - | |
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| | Bonuses | - | - | |
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| | Total | 105,580 | - | |
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| | Fringe benefits | 6,420 | - | |
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| | Total | 112,000 | - | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Compulsory pension payments | 6,048 | - | |
| | (Finnish TyEL or similar plan) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | (* from 1 September, 2009 | | | |
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EUR
--------------------------------------------------------------------------------
| CEO Mika Seitovirta (* | | |
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| Salaries | 272,024 | 442,014 |
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| Compensation for termination of employment | 525,000 | - |
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| Share-based incentive plans, settled in cash | - | 74,204 |
--------------------------------------------------------------------------------
| Share-based incentive plans, settled in shares, | - | 61,391 |
| value of shares | | |
--------------------------------------------------------------------------------
| Bonuses | 33,171 | 87,930 |
--------------------------------------------------------------------------------
| Total | 830,195 | 665,539 |
--------------------------------------------------------------------------------
| Fringe benefits | 3,846 | 2,420 |
--------------------------------------------------------------------------------
| Total | 834,041 | 667,959 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Compulsory pension payments (Finnish TyEL or | 13,289 | 16,439 |
| similar plan) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (* until 5 August, 2009 | | |
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| Other members of the Executive Management Group | |
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| Salaries | 1,155,624 | 1,176,370 |
--------------------------------------------------------------------------------
| Compensations for termination of | 425,036 | - |
| employment | | |
--------------------------------------------------------------------------------
| Share-based incentive plans, settled in | - | 137,395 |
| cash | | |
--------------------------------------------------------------------------------
| Share-based incentive plans, settled in | - | 102,319 |
| shares, value of shares | | |
--------------------------------------------------------------------------------
| Bonuses | 124,322 | 298,237 |
--------------------------------------------------------------------------------
| Total | 1,704,982 | 1,714,321 |
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| Fringe benefits | 74,573 | 70,804 |
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| Total | 1,779,555 | 1,785,125 |
--------------------------------------------------------------------------------
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| Compulsory pension payments (Finnish | 132,802 | 137,193 |
| TyEL or similar plan) | | |
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Share-based incentive plan
The expenses, personnel costs included, were in 2009 EUR 0.3 (0.3) million. In
2009, no shares were surrendered based on the share-based incentive plan.
Transactions with joint ventures and associates
Glaston has leased property to the joint venture in 2009. In January - December
2009 or 2008 Glaston had no other material transactions with the joint venture.
Glaston did not have transactions with the associate.
EUR million
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| Transactions with joint ventures | | |
--------------------------------------------------------------------------------
| | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
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| Sales to joint venture | 0.0 | 0.0 |
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| Rental income from joint venture | 0.3 | - |
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| Interest income from joint venture | 0.3 | - |
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| | 1-12/2009 | 1-12/2008 |
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| Receivables from and liabilities to joint | | |
| ventures | | |
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| Current receivables | 1.2 | 0.0 |
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| Non-current loan receivables | 5.9 | - |
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| Trade payables | 0.1 | - |
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