Glaston Interim Report 1 January - 30 June 2010
Glaston Corporation INTERIM REPORT 24 August 2010 at 13.00
Glaston Interim Report 1 January - 30 June 2010
-Orders received in January-June totalled EUR 69.6 (72.3) million.
-Glaston's order book on 30 June 2010 stood at EUR 30.2 (37.1) million.
-Consolidated net sales in January-June totalled EUR 79.9 (84.4) million.
-The operating result in January-June was a loss of EUR 4.5 (19.5 loss)
million, i.e. -5.6 (-23.1)% of net sales.
-Return on capital employed (ROCE) was -7.3 (-19.7)%.
-January-June earnings per share were EUR -0.10 (-0.23).
-In 2010, the net sales is expected to be at the 2009 level(the earlier
estimate: the net sales at least at the 2009 level). The operating result is
expected to improve significantly in comparison to last year.
President & CEO Arto Metsänen:
The cautious recovery of the market continued in the second quarter of the year,
in particular in Asia and South America. In Europe and North America, in the
traditional main markets for Glaston, the market remains subdued and recovery is
slower than expected.
Positive development in Asia continued. Pre-processing machines were launched in
the Asian market in the spring and were well received and the Heat Treatment
orders received in the second quarter came mainly from China. We expect the
sales to develop positively during the rest of the year, too.
Published efficiency measures have proceeded on schedule, and most of them were
completed in the first half of the year. Profitability improvements continue. As
demand is still weak in the EMEA region, production adjustments in Italy and
Finland continue through temporary lay-offs. The sales organisation structure
will be streamlined as well.
Markets
The positive development of the Glaston market continued in China and South
America in the second quarter. The subtle pick-up in the European economy in the
second quarter did not show in the glass processing machinery market. In North
America, demand continued to be low. The cautious recovery of the solar energy
glass demand continued in the second quarter.
Machines
In the second quarter, the demand in Europe and North America continued to be
weak. However, towards the end of the review period, the North American market
showed positive signs of increased customer activity. In Europe, the customers'
willingness to invest was still modest. This led to the postponement of any
major investment decisions, which influenced the number of new orders for Heat
Treatment machines, in particular.
Positive development in the South American market continued. The new flat
tempering machine, Tamglass Power Control, was launched and well received on the
Glass South America fair. The fair boosted tool sales as well.
In Asia, demand continued to improve in the second quarter. In China, the main
event of the review period was the China Glass fair, organised in Beijing in
June, where the Pre-processing product line launched two new cutting lines: the
Bavelloni Dragon cutting line, aimed in particular for the Chinese market, and
in the lower price range, the Bavelloni ProCut cutting line. The Indian market
started to pick up in the second quarter which was reflected in increased
customer contacts.
To improve sales efficiency in the EMEA area, the sales organisation was
reorganised during the review period. Instead of the earlier geographical
division, the new structure in the EMEA sales organisation is based on product
lines (Heat Treatment, Pre-processing, Tools).
The development of global sourcing continued and the sourcing organisation in
China was further strengthened.
In January-June, the Machines segment's net sales totalled EUR 52.9 (53.4)
million.
Services
Recovery continued in the Services segment market in the second quarter, with
North Asia propelling the growth. A few fairly notable upgrade product deals
were closed both in North America and in the Pacific area during the second
quarter. In the EMEA area, demand for spare parts picked up in the review
period.
In the review period, the Services segment launched a new affordable upgrade
package for control systems, which got a positive response in the market. Demand
grew in upgrade products related to the quality control of end products as well.
Other new products included automatic malfunction notifications via e-mail and
SMS, a blower monitoring devise and the new Vortex ProTM convection control
system enabling increased capacity and improved glass quality.
In January-June, the Services segment's net sales totalled EUR 15.5 (20.4,
including EUR 2.4 million of Tamglass Glass Processing sales) million.
Software Solutions
In the second quarter, the Software Solutions segment market was stable. In
Europe, demand picked up during the quarter and in the Asian and South American
markets positive development continued.
Both the order book and the orders received are at the level of the same period
in the previous year. The measures for improving sales are continued.
In January-June, the Software Solutions segment's net sales totalled EUR 12.0
(11.8) million.
Orders received
Glaston's orders received during the first six months of the year totalled EUR
69.6 (72.3) million. Of orders received, the Machines segment accounted for 63%,
Software Solutions for 16% and Services for 20%.
Order book
Glaston's order book on 30 June 2010 was EUR 30.2 (37.1) million. Of the order
book, the Machines segment accounted for EUR 25.6 million, Services for EUR 0.9
million and Software Solutions for EUR 3.7 million.
--------------------------------------------------------------------------------
| Order book, EUR million | 30 June 2010 | 30 June 2009 |
--------------------------------------------------------------------------------
| Machines | 25.6 | 30.8 |
--------------------------------------------------------------------------------
| Services | 0.9 | 2.3 |
--------------------------------------------------------------------------------
| Software Solutions | 3.7 | 4.0 |
--------------------------------------------------------------------------------
| Total | 30.2 | 37.1 |
--------------------------------------------------------------------------------
Net sales and operating result
Net sales for the review period were EUR 79.9 (84.4) million. Of net sales in
the first half of the year, the Machines segment accounted for EUR 52.9 (53.4)
million, Services for EUR 15.5 (20.4 in 2009, of which Tamglass Glass Processing
accounted for EUR 4.2 million) million and Software Solutions for EUR 12.0
(11.8) million.
--------------------------------------------------------------------------------
| Net sales, EUR million | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Machines | 52.9 | 53.4 | 92.5 |
--------------------------------------------------------------------------------
| Services | 15.5 | 20.4 | 37.7 |
--------------------------------------------------------------------------------
| Software Solutions | 12.0 | 11.8 | 23.9 |
--------------------------------------------------------------------------------
| Parent company, elim. | -0.4 | -1.2 | -2.4 |
--------------------------------------------------------------------------------
| Total | 79.9 | 84.4 | 151.8 |
--------------------------------------------------------------------------------
Net sales in the second quarter were EUR 41.5 (45.2) million, of which the
Machines segment accounted for EUR 28.5 (29.8) million, Services for EUR 7.3
(9.7) million and Software Solutions for EUR 6.0 (5.9) million.
The operating result in January-June was a loss of EUR 4.5 (19.5 loss) million,
i.e. -5.6 (-23.1)% of net sales. The improvement in the operating result was
mainly achieved through implemented cost savings. The operating result of the
comparison year includes EUR 4.3 million of non-recurring items. Of the
operating result in the first half of the year (excluding non-recurring items),
the Machines segment accounted for EUR -3.2 (-9.9) million and Services for EUR
1.5 (-1.9) million. The 2010 figure for the Services segment is affected by the
operating loss from Tamglass Glass Processing, EUR 0.5 million, and the 2009
figure by a loss of EUR 2.6 million. The Software Solutions segment operating
profit was EUR 1.2 (0.1) million.
The operating result for the second quarter was a loss of EUR 2.8 (10.5 loss)
million. The figure for the second quarter of 2009 includes non-recurring items
amounting to EUR -4.3 million. Of the second quarter operating result (excluding
non-recurring items), the Machines segment accounted for EUR -1.7 (-4.6)
million, Services for EUR 0.5 (-0.2) million and Software Solutions for EUR 0.5
(0.5) million.
The result for the review period was a loss of EUR 7.8 (18.1 loss) million and
for the second quarter a loss of EUR 3.4 (10.0 loss) million. Return on capital
employed was EUR -7.3 (-19.7)% and earnings per share were EUR -0.10 (-0.23).
For the second quarter, the earnings per share were EUR -0.04 (-0.13).
Statement of financial position, cash flow and financing
At the end of thereview period, the Group's statement of financial position
totalled EUR 224.5 (263.9) million. The equity attributable to the owners of
the parent was EUR
63.7 (105.0) million, i.e. EUR 0.81 (1.34) per share. The equity ratio on 30
June 2010 was 30.8 (41.9)%.
Return on equity in January-June was -23.3 (-31.6)%.
Cash flow from operating activities, excluding the change in working capital,
was negative, EUR -8.7 (-17.6) million, in the review period. The most
significant reasons for the negative cash flow from operating activities,
excluding the change in working capital, were the settling of provisions
recognised in 2009 and financial items, such as the payment of convertible bond
interest. The change in working capital was EUR -5.5 (15.2) million. Cash flow
from investments was EUR -1.4 (-5.4) million. Cash flow from financing
activities in January-June was EUR 10.8 (17.6) million.
The Group's financial position remained reasonable. A EUR 6.3 million
convertible bond issued in February influenced the Group's financial position.
The terms of the convertible bond are similar to those of the convertible bond
issued in June 2009.
The Group's liquid funds at the end of the review period totalled EUR 14.8
(21.4) million. Interest-bearing net debt totalled EUR 74.0 (63.9) million and
net gearing was 115.4 (60.6)%. In liquidity management Glaston mainly utilises
a committed revolving credit facility. The size of the revolving credit facility
is EUR 74 million, of which approximately EUR 47 million was in use at the end
of June.
Efficiency programme
The efficiency improvement measures started in 2008 and the extensive efficiency
programme launched in October 2009 for reorganising operations were completed
for the most part during the first half of 2010. In the second half of the year,
the measures for adjusting production capacity in line with demand in Finland
and Italy will continue. The project to simplify the sales organisation
structure will also be continued.
Capital expenditure, depreciation and amortisation
Glaston's gross capital expenditure totalled EUR 2.1 (6.2) million. In the
review period, there were no significant individual investments.
In the review period, depreciation, amortisation and impairment losses of
intangible assets and property, plant and equipment totalled EUR 4.0 (5.2)
million.
Organisation and personnel
Tapio Engström was appointed Glaston's Chief Financial Officer as of 1 July 2010
and Pekka Huuhka was appointed Senior Vice President, Supply Chain as of 1
August 2010.
On 30 June 2010, Glaston Corporation had a total of 1,032 (1,331) employees. Of
the Group's employees, 18% worked in Finland and 50% elsewhere in the EMEA area,
19% in Asia and 13% in the Americas. The average number of employees was 1,065
(1,453).
Shares and share prices
Glaston Corporation's paid and registered share capital
on 30 June 2010 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 June, 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.
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. The counter book
value of each share is EUR 0.16.
On 30 June 2010, the market capitalisation of the company's shares, treasury
shares excluded, was EUR 98.9 (83.2) million. During the first six months of the
year, a total of around 8.1 million of the company's shares were traded, i.e.
around 10% of the average number of shares. The lowest price paid for a share
was EUR 1.05 and the highest price EUR 1.65. The weighted average price of
shares traded during January-June was EUR 1.27. The closing price on 30 June
2010 was EUR 1.26.
Share based incentive scheme
The Board of Directors made a decision about a new
share based incentive scheme for the management on 9 June 2010. The scheme
consists of one earning period, comprised of the years 2010 and 2011, and the
earning criterion is the development of operating profit. The reward, if any,
will be paid after the results for 2011 are published in spring 2012.
Through the scheme, approximately 2.5 million Glaston shares (at maximum) can be
distributed. Any income taxes and other statutory fees incurred by the reward
payment will be deducted from the gross share amount before distribution of the
shares.
In the earning period, the target group of the scheme can contain 11 persons at
maximum.
Events after the review period
Tapani Lankinen has been appointed Glaston's Senior Vice
President, Human Resources as of 1 October 2010.
Decisions of the Annual General Meeting
The Annual General Meeting of GlastonCorporation was held in Helsinki on 13
April 2010. The Annual General Meeting approved the financial statements and
consolidated financial statements for 2009 and discharged the Board of
Directors and the President & CEO from liability for the financial year 1
January- 31 December 2009.
The Annual General Meeting approved the proposal of the Board of Directors that
no dividend be distributed for the financial year 2009.
The Annual General Meeting confirmed the re-election of the following members of
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. In addition, Teuvo Salminen was elected as a new member of the Board.
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 annual remuneration of the
other Members of the Board at EUR 20,000.
The Annual General Meeting elected as auditor Public Accountants Ernst & Young
Oy, the responsible auditor being Authorised Public Accountant Harri Pärssinen.
The Annual General Meeting approved an amendment to Article 11 of the Articles
of Association that the notice to attend a General Meeting be published no later
than three weeks prior to the General Meeting, however at the latest nine days
before the record date of the General Meeting.
Authorisations given by 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. By virtue of the authorisation, the Board of Directors is entitled to
decide on the issuance of a maximum of 6,800,000 new shares and on the
conveyance of a maximum of 6,800,000 own shares held by the company. However,
the total number of shares to be issued and/or conveyed may not exceed 6,800,000
shares. The new shares may be issued and own shares held by the company may be
conveyed either against payment or without payment.
The new shares may be issued and/or own shares held by the company conveyed to
the company's shareholders in proportion to their existing shareholdings in the
company, or by means of a directed share issue, waiving the pre-emptive
subscription right of the shareholders, if there is a weighty reason for the
company to do so, such as the shares are to be used to improve the capital
structure of the company or as consideration in future acquisitions or other
arrangements that are part of the company's business or as part of company's or
its subsidiaries' incentive schemes.
Shares can be issued or conveyed without payment in exception to the pre-emptive
subscription right of shareholders only if there is an especially weighty
financial reason for the company to do so, taking the interests of all
shareholders into account.
The Board of Directors may decide on a share issue without payment also to the
company itself. A decision regarding a share issue to the company itself cannot
be made such that the total number of shares held jointly by the company or its
subsidiaries would exceed one tenth of all shares of the company.
The subscription price of new shares issued and the consideration paid for the
conveyance of the company's own shares shall be credited to the reserve for
invested unrestricted equity.
By virtue of the share issue authorisation, the Board of Directors shall decide
on other matters relating to the issuing and conveyance of shares. The share
issue authorisation is valid until the end of the 2012 Annual General Meeting.
The Board of Directors has no other authorisations.
Organising meeting of the Board of Directors
At its organising meeting on 13 April 2010, the Board of Directors elected
Andreas Tallberg to continue as the Chairman of the Board and Christer Sumelius
to continue as the Deputy Chariman of the Board.
Uncertainties in the near future
Despite the cautious recovery of the world economy, there are still
uncertainties in relation to Glaston's development in the near future.
Glaston's main markets (EMEA, North America) are still subdued and contracted
markets have also led to an oversupply of customers' production capacity.
Despite the gradual pick-up in the economy, difficulties related to customers'
financing arrangements limit investment opportunities. This affects major
machinery investments in particular, and orders may be postponed further and
those already confirmed may be cancelled. Customers' financial situations also
impact the collection of receivables and credit losses.
If the recovery of the sector is 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 modest recovery in Glaston's market is expected during 2010. We expect
the positive development to continue in Asia, particularly in the Chinese
market. We also expect that in South America demand remains good. Despite the
subtle pick-up in the European economy, the glass processing machinery market is
still subdued except for a few country-specific exceptions.
In 2010, the priority for developing operations is improving profitability. The
cornerstones of Glaston's operations remain the architectural glass segment and
the solar energy market. We will continue to purposefully strengthen our
position in China and elsewhere in Asia.
The published efficiency measures proceeds as planned. We expect that 2010 net
sales will be at the 2009 level (the earlier estimate: the net sales at least at
the 2009 level) and that the operating result will significantly improve.
Helsinki, 24 August 2010
Glaston Corporation
Board of Directors
For further information, please contact: President & CEO Arto Metsänen, phone:
+358 10 500 6100
Sender:
Agneta Selroos
IR and Corporate Communications Manager
Glaston Corporation
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 Software in glass industry software.
Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki Mid Cap List.
www.glaston.net
Distribution: NASDAQ OMX, media, www.glaston.net
GLASTON CORPORATION
CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 30 JUNE 2010
These interim financial statements 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 | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 58.4 | 66.2 | 58.4 |
--------------------------------------------------------------------------------
| Other intangible assets | 19.3 | 23.6 | 19.7 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 23.1 | 28.5 | 24.7 |
--------------------------------------------------------------------------------
| Investments in joint ventures and | 0.0 | 1.4 | 0.4 |
| associates | | | |
--------------------------------------------------------------------------------
| Available-for-sale assets | 0.3 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Loan receivables | 4.2 | 5.4 | 5.9 |
--------------------------------------------------------------------------------
| Deferred tax assets | 9.0 | 9.8 | 8.5 |
--------------------------------------------------------------------------------
| Total non-current assets | 114.3 | 135.2 | 117.9 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 37.2 | 41.3 | 37.4 |
--------------------------------------------------------------------------------
| Receivables | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 54.5 | 62.1 | 52.2 |
--------------------------------------------------------------------------------
| Assets for current tax | 3.8 | 4.0 | 3.6 |
--------------------------------------------------------------------------------
| Total receivables | 58.2 | 66.1 | 55.8 |
--------------------------------------------------------------------------------
| Cash equivalents | 14.8 | 21.4 | 15.6 |
--------------------------------------------------------------------------------
| Total current assets | 110.2 | 128.7 | 108.8 |
--------------------------------------------------------------------------------
| Total assets | 224.5 | 263.9 | 226.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Equity and liabilities | | | |
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Share capital | 12.7 | 12.7 | 12.7 |
--------------------------------------------------------------------------------
| Share premium account | 25.3 | 25.3 | 25.3 |
--------------------------------------------------------------------------------
| Other reserves | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Reserve for invested unrestricted | 0.2 | 0.2 | 0.2 |
| equity | | | |
--------------------------------------------------------------------------------
| Treasury shares | -3.5 | -3.5 | -3.5 |
--------------------------------------------------------------------------------
| Fair value reserve | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Retained earnings and exchange | 36.8 | 88.4 | 87.9 |
| differences | | | |
--------------------------------------------------------------------------------
| Net result attributable to owners | -7.8 | -18.1 | -53.6 |
| of the parent | | | |
--------------------------------------------------------------------------------
| Equity attributable to owners of | 63.7 | 105.0 | 69.0 |
| the parent | | | |
--------------------------------------------------------------------------------
| Non-controlling interest | 0.4 | 0.4 | 0.3 |
--------------------------------------------------------------------------------
| Total equity | 64.1 | 105.4 | 69.4 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Convertible bond | 25.7 | 19.8 | 20.1 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 4.2 | 13.1 | 4.7 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-current interest-free | 5.6 | 7.4 | 7.3 |
| liabilities and provisions | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 5.0 | 8.7 | 6.6 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 40.5 | 49.0 | 38.8 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 58.8 | 52.3 | 54.4 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Current provisions | 5.7 | 6.2 | 9.8 |
--------------------------------------------------------------------------------
| Trade and other payables | 52.5 | 49.9 | 53.2 |
--------------------------------------------------------------------------------
| Liabilities for current tax | 2.9 | 1.1 | 1.0 |
--------------------------------------------------------------------------------
| Total current liabilities | 119.8 | 109.5 | 118.5 |
--------------------------------------------------------------------------------
| Total liabilities | 160.4 | 158.5 | 157.3 |
--------------------------------------------------------------------------------
| Total equity and liabilities | 224.5 | 263.9 | 226.7 |
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CONDENSED CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 41.5 | 45.2 | 79.9 | 84.4 | 151.8 |
--------------------------------------------------------------------------------
| Other operating | 0.2 | 0.1 | 0.3 | 0.5 | 1.1 |
| income | | | | | |
--------------------------------------------------------------------------------
| Expenses | -42.5 | -52.8 | -80.3 | -98.8 | -185.8 |
--------------------------------------------------------------------------------
| Share of associates | - | -0.4 | -0.5 | -0.4 | -1.5 |
| and joint ventures' | | | | | |
| result | | | | | |
--------------------------------------------------------------------------------
| Depreciation. | -2.1 | -2.6 | -4.0 | -5.2 | -20.9 |
| amortization and | | | | | |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating profit / | -2.8 | -10.5 | -4.5 | -19.5 | -55.3 |
| loss | | | | | |
--------------------------------------------------------------------------------
| Financial items. net | 0.1 | -0.7 | -3.1 | -0.8 | -2.3 |
--------------------------------------------------------------------------------
| Result before income | -2.8 | -11.3 | -7.6 | -20.3 | -57.6 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -0.6 | 1.2 | -0.2 | 2.1 | 4.0 |
--------------------------------------------------------------------------------
| Profit / loss for the | -3.4 | -10.0 | -7.8 | -18.1 | -53.6 |
| period | | | | | |
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Owners of the parent | -3.4 | -10.0 | -7.8 | -18.1 | -53.6 |
--------------------------------------------------------------------------------
| Non-controlling | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| interest | | | | | |
--------------------------------------------------------------------------------
| Total | -3.4 | -10.0 | -7.8 | -18.1 | -53.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | -0.04 | -0.13 | -0.10 | -0.23 | -0.68 |
| EUR, basic | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | -0.04 | -0.13 | -0.10 | -0.23 | -0.68 |
| EUR, diluted | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit / | -6.8 | -23.3 | -5.6 | -23.1 | -36.4 |
| loss, as % of net | | | | | |
| sales | | | | | |
--------------------------------------------------------------------------------
| Profit / loss for the | -8.2 | -22.2 | -9.7 | -21.4 | -35.3 |
| period, as % of net | | | | | |
| sales | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-recurring items | - | -4.3 | - | -4.3 | -21.6 |
| included in operating | | | | | |
| profit / loss | | | | | |
--------------------------------------------------------------------------------
| Operating profit / | -2.8 | -6.2 | -4.5 | -15.2 | -33.6 |
| loss, non-recurring | | | | | |
| items excluded | | | | | |
--------------------------------------------------------------------------------
| Operating profit / | -8.2 | -13.7 | -9.7 | -18.0 | -22.2 |
| loss, non-recurring | | | | | |
| items excluded, as % | | | | | |
| of net sales | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit / loss for the | -3.4 | -10.0 | -7.8 | -18.1 | -53.6 |
| period | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Total exchange differences | 1.1 | -0.8 | 1.8 | -0.1 | -0.7 |
| on translating foreign | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Fair value changes of | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| available-for-sale assets | | | | | |
--------------------------------------------------------------------------------
| Income tax on other | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income | 1.1 | -0.8 | 1.8 | -0.1 | -0.7 |
| for the reporting period, | | | | | |
| net of tax | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | -2.3 | -10.8 | -6.0 | -18.2 | -54.4 |
| for the reporting period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Owners of the parent | -2.4 | -10.8 | -6.1 | -18.2 | -54.3 |
--------------------------------------------------------------------------------
| Non-controlling interest | 0.1 | 0.0 | 0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total comprehensive income | -2.3 | -10.8 | -6.0 | -18.2 | -54.4 |
| for the reporting period | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
--------------------------------------------------------------------------------
| EUR million | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Cash flows from operating | | | |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in net | -8.7 | -17.6 | -29.8 |
| working capital | | | |
--------------------------------------------------------------------------------
| Change in net working capital | -5.5 | 15.2 | 28.6 |
--------------------------------------------------------------------------------
| Net cash flow from operating | -14.2 | -2.4 | -1.2 |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Business combinations | 0.0 | -0.5 | -0.5 |
--------------------------------------------------------------------------------
| Other purchases of non-current | -1.9 | -4.5 | -6.5 |
| assets | | | |
--------------------------------------------------------------------------------
| Investment in joint ventures | -0.2 | -1.8 | -2.0 |
--------------------------------------------------------------------------------
| Proceeds from sale of joint | 0.4 | - | - |
| ventures | | | |
--------------------------------------------------------------------------------
| Other | - | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Proceeds from sale of other | 0.4 | 1.2 | 1.4 |
| non-current assets | | | |
--------------------------------------------------------------------------------
| Net cash flow from investing | -1.4 | -5.4 | -7.5 |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow before financing | -15.6 | -7.8 | -8.7 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Increase in non-current liabilities | 6.2 | 23.8 | 23.8 |
--------------------------------------------------------------------------------
| Decrease in non-current liabilities | -0.5 | -2.7 | -11.9 |
--------------------------------------------------------------------------------
| Changes in short-term liabilities | 3.8 | -0.8 | 3.2 |
| (increase + / decrease -) | | | |
--------------------------------------------------------------------------------
| Dividends paid | - | -3.9 | -3.9 |
--------------------------------------------------------------------------------
| Other financing | 1.4 | 1.2 | 1.2 |
--------------------------------------------------------------------------------
| Net cash flow from financing | 10.8 | 17.6 | 12.3 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect of exchange rate changes | 4.0 | 0.1 | 0.4 |
--------------------------------------------------------------------------------
| Net change in cash and cash | -0.8 | 9.8 | 4.0 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 15.6 | 11.5 | 11.5 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 14.8 | 21.4 | 15.6 |
| end of period | | | |
--------------------------------------------------------------------------------
| Net change in cash and cash | -0.8 | 9.8 | 4.0 |
| equivalents | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
| EUR million | Share | Share | Other | Reserve | Treasury | Fair |
| | capita | premiu | reserves | for | shares | value |
| | l | 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 | - | - | - |
--------------------------------------------------------------------------------
| Other changes | - | - | - | 0.0 | 0.0 | - |
| in treasury | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 |
| June, 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Share | Other | Reserve | Treasury | Fair |
| | capital | premiu | reserve | for | shares | value |
| | | m | s | invested | | reserve |
| | | accoun | | unrest. | | |
| | | t | | equity | | |
--------------------------------------------------------------------------------
| Equity at 1 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 |
| January, 2010 | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | - | - | 0.0 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 |
| June, 2010 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Retained | Exchange | Equity | Non-contro | Total |
| | earnings | diff. | attributabl | lling | equity |
| | | | e to owners | interest | |
| | | | of the | | |
| | | | parent | | |
--------------------------------------------------------------------------------
| Equity at 1 | 89.6 | -0.5 | 123.7 | 0.1 | 123.8 |
| January, 2009 | | | | | |
--------------------------------------------------------------------------------
| Total | -18.1 | -0.1 | -18.2 | 0.0 | -18.2 |
| comprehensive | | | | | |
| income for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Other changes | - | - | - | 0.4 | 0.4 |
| in | | | | | |
| non-controllin | | | | | |
| g interest | | | | | |
--------------------------------------------------------------------------------
| Other changes | 0.0 | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Share-based | 0.0 | - | 0.0 | - | 0.0 |
| 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 | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -3.9 | - | -3.9 | - | -3.9 |
--------------------------------------------------------------------------------
| Equity at 30 | 71.0 | -0.7 | 105.0 | 0.4 | 105.4 |
| June, 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | Retained | Exchange | Equity | Non-control | Total |
| | earnings | diff. | attributabl | ling | equity |
| | | | e to owners | interest | |
| | | | of the | | |
| | | | parent | | |
--------------------------------------------------------------------------------
| Equity at 1 | 35.6 | -1.3 | 69.0 | 0.3 | 69.4 |
| January, 2010 | | | | | |
--------------------------------------------------------------------------------
| Total | -7.8 | 1.7 | -6.1 | 0.1 | -6.0 |
| comprehensive | | | | | |
| income for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Share-based | 0.0 | - | 0.0 | - | 0.0 |
| incentive plan | | | | | |
--------------------------------------------------------------------------------
| Share-based | 0.0 | - | 0.0 | - | 0.0 |
| incentive | | | | | |
| plan, tax | | | | | |
| effect | | | | | |
--------------------------------------------------------------------------------
| Equity part of | 0.8 | - | 0.8 | - | 0.8 |
| convertible | | | | | |
| bond | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 28.6 | 0.4 | 63.7 | 0.4 | 64.1 |
| June, 2010 | | | | | |
--------------------------------------------------------------------------------
KEY RATIOS
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA, as % of net sales (1 | -0.7 | -16.9 | -22.7 |
--------------------------------------------------------------------------------
| Operating profit / loss (EBIT), as | -5.6 | -23.1 | -36.4 |
| % of net sales | | | |
--------------------------------------------------------------------------------
| Net result, as % of net sales | -9.7 | -21.4 | -35.3 |
--------------------------------------------------------------------------------
| Gross capital expenditure, EUR | 2.1 | 6.2 | 8.5 |
| million | | | |
--------------------------------------------------------------------------------
| Gross capital expenditure, as % of | 2.6 | 7.3 | 5.6 |
| net sales | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 30.8 | 41.9 | 33.1 |
--------------------------------------------------------------------------------
| Gearing, % | 138.4 | 80.9 | 114.3 |
--------------------------------------------------------------------------------
| Net gearing, % | 115.4 | 60.6 | 91.9 |
--------------------------------------------------------------------------------
| Net interest-bearing debt, EUR | 74.0 | 63.9 | 63.7 |
| million | | | |
--------------------------------------------------------------------------------
| Capital employed, end of period, | 152.9 | 190.7 | 148.6 |
| EUR million | | | |
--------------------------------------------------------------------------------
| Return on equity, %, annualized | -23.3 | -31.6 | -55.5 |
--------------------------------------------------------------------------------
| Return on capital employed, %, | -7.3 | -19.7 | -32.1 |
| annualized | | | |
--------------------------------------------------------------------------------
| Number of personnel, average | 1,065 | 1,453 | 1,344 |
--------------------------------------------------------------------------------
| Number of personnel, end of period | 1,032 | 1,331 | 1,160 |
--------------------------------------------------------------------------------
(1 EBITDA = Operating profit / loss + depreciation, amortization and impairment.
--------------------------------------------------------------------------------
| PER SHARE DATA | | | |
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Number of shares, end of period, | 78,511 | 78,511 | 78,511 |
| treasury shares excluded (1,000) | | | |
--------------------------------------------------------------------------------
| Number of shares, average, treasury | 78,511 | 78,533 | 78,522 |
| shares excluded (1,000) | | | |
--------------------------------------------------------------------------------
| Number of shares, dilution effect of | 100,127 | 81,379 | 89,143 |
| the convertible bond taken into | | | |
| account, average, treasury shares | | | |
| excluded (1,000) | | | |
--------------------------------------------------------------------------------
| EPS, basic, EUR | -0.10 | -0.23 | -0.68 |
--------------------------------------------------------------------------------
| EPS, diluted, EUR | -0.10 | -0.23 | -0.68 |
--------------------------------------------------------------------------------
| Equity attributable to owners of the | 0.81 | 1.34 | 0.88 |
| parent per share, EUR | | | |
--------------------------------------------------------------------------------
| Price per earnings per share (P/E) | -12.7 | -4.6 | -1.6 |
| ratio | | | |
--------------------------------------------------------------------------------
| Price per equity attributable to | 1.55 | 0.79 | 1.23 |
| owners of the parent per share | | | |
--------------------------------------------------------------------------------
| Market capitalization, EUR million | 98.9 | 83.2 | 84.8 |
--------------------------------------------------------------------------------
| Share turnover, % (number of shares | 10.4 | 5.0 | 9.0 |
| traded, % of the average number of | | | |
| shares) | | | |
--------------------------------------------------------------------------------
| Number of shares traded, (1,000) | 8,131 | 3,921 | 7,033 |
--------------------------------------------------------------------------------
| Closing price of the share, EUR | 1.26 | 1.06 | 1.08 |
--------------------------------------------------------------------------------
| Highest quoted price, EUR | 1.65 | 1.44 | 1.44 |
--------------------------------------------------------------------------------
| Lowest quoted price, EUR | 1.05 | 0.92 | 0.92 |
--------------------------------------------------------------------------------
| Volume-weighted average quoted | 1.27 | 1.18 | 1.18 |
| price, EUR | | | |
--------------------------------------------------------------------------------
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 interim financial statements of Glaston Group are prepared in
accordance with International Financial Reporting Standard IAS 34 Interim
Financial Reporting as approved by the European Union. They do not include all
of the information required for full annual financial statements.
The accounting principles applied in these interim 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, 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 applies 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 are recognized
in profit or loss and not capitalized as a part of the purchase consideration,
as previously were done. In addition, all consideration transferred in the
business combination are measured at the acquisition-date fair value, and
liabilities classified as contingent consideration are subsequently measured at
fair value with any resulting gain or loss recognized in profit or loss. For
each business combination it is possible to choose, whether the non-controlling
interest is measured at fair value or as the non-controlling interest's
proportionate share of the acquiree's net assets. This choice has 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 are recognized in equity, if there is no
change in control. These transactions do not result in goodwill or gains or
losses. If the control is lost, the possible remaining ownership share is
measured at fair value and the resulting gain or loss is recognized in profit or
loss. Also, in accordance with the revised standard, total comprehensive income
is attributed also to non-controlling interest even if this would 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 changes the allocation of goodwill in Glaston. Goodwill has been 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.
DIVESTMENTS
Glaston's joint venture, the glass processing company INTERPANE Glass Oy, was
sold to Rakla Finland Oy on 9 April, 2010.
INTERPANE Glass Oy began its operations on 1st April, 2009 and was owned jointly
by A A A Glass & Design Finland Oy and a subsidiary of Glaston Corporation. The
shareholders of INTERPANE Glass agreed on rearranging their ownership, and as a
result of the agreement 100 percent of the shares in INTERPANE Glass Oy were
sold to Rakla Finland Oy. After the rearrangement transaction, Glaston still
holds a EUR 4 million secured loan receivable in INTERPANE Glass Oy.
The result
effect of the rearrangement transaction, approximately EUR -2.7 million, was
recognized in Glaston's first quarter result in financial expenses, thus the
rearrangement transaction has no effect on Glaston's operating result.
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 manufacturing and sale of tools. The
sale of tools was transferred to Machines segment from Services segment during
the first quarter. Comparison information has been restated accordingly.
Services segment includes maintenance and service of glass processing machines,
machine upgrades and sale of spare parts. Services segment also provided service
to a customer by operating of glass processing factory in Akaa, Finland, on
behalf of the customer. Glaston has decided to cease the operations at the glass
processing factory.
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 unallocated share of joint venture's result.
--------------------------------------------------------------------------------
| Machines | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 28,5 | 30,1 | 52,9 | 53,0 | 92,0 |
--------------------------------------------------------------------------------
| Intersegment sales | 0,0 | -0,3 | 0,0 | 0,4 | 0,6 |
--------------------------------------------------------------------------------
| Net sales | 28,5 | 29,8 | 52,9 | 53,4 | 92,5 |
--------------------------------------------------------------------------------
| EBIT excluding non-recurring | -1,7 | -4,6 | -3,2 | -9,9 | -22,4 |
| items | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. non-recurring | -5,9 | -15,4 | -6,0 | -18,5 | -24,2 |
| items | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | -3,8 | - | -3,8 | -15,9 |
--------------------------------------------------------------------------------
| EBIT | -1,7 | -8,4 | -3,2 | -13,6 | -38,3 |
--------------------------------------------------------------------------------
| EBIT-% | -5,9 | -28,1 | -6,0 | -25,6 | -41,4 |
--------------------------------------------------------------------------------
| Net working capital | | | 35,5 | 50,4 | 34,4 |
--------------------------------------------------------------------------------
| Number of personnel, average | | | 637 | 832 | 778 |
--------------------------------------------------------------------------------
| Number of personnel, end of | | | 619 | 768 | 688 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Services | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 7,0 | 9,2 | 15,0 | 19,6 | 35,9 |
--------------------------------------------------------------------------------
| Intersegment sales | 0,2 | 0,6 | 0,4 | 0,8 | 1,9 |
--------------------------------------------------------------------------------
| Net sales | 7,3 | 9,7 | 15,5 | 20,4 | 37,7 |
--------------------------------------------------------------------------------
| EBIT excluding non-recurring | 0,5 | -0,2 | 1,5 | -1,9 | -2,4 |
| items | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. non-recurring | 6,6 | -1,7 | 9,5 | -9,2 | -6,4 |
| items | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | -0,3 | - | -0,3 | -2,8 |
--------------------------------------------------------------------------------
| EBIT | 0,5 | -0,4 | 1,5 | -2,1 | -5,2 |
--------------------------------------------------------------------------------
| EBIT-% | 6,6 | -4,5 | 9,5 | -10,5 | -13,7 |
--------------------------------------------------------------------------------
| Net working capital | | | 8,2 | 13,2 | 9,8 |
--------------------------------------------------------------------------------
| Number of personnel, average | | | 183 | 335 | 291 |
--------------------------------------------------------------------------------
| Number of personnel, end of | | | 170 | 277 | 215 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Software Solutions | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 6.0 | 5.9 | 12.0 | 11.8 | 23.9 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net sales | 6.0 | 5.9 | 12.0 | 11.8 | 23.9 |
--------------------------------------------------------------------------------
| Share of associates' and | - | - | - | - | 0.0 |
| joint ventures' results | | | | | |
--------------------------------------------------------------------------------
| EBIT excluding non-recurring | 0.5 | 0.5 | 1.2 | 0.1 | 0.4 |
| items | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. non-recurring | 7.8 | 8.7 | 9.7 | 1.3 | 1.7 |
| items | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | -0.3 | - | -0.3 | -1.7 |
--------------------------------------------------------------------------------
| EBIT | 0.5 | 0.2 | 1.2 | -0.1 | -1.3 |
--------------------------------------------------------------------------------
| EBIT-% | 7.8 | 4.1 | 9.7 | -1.0 | -5.5 |
--------------------------------------------------------------------------------
| Net working capital | | | 6.7 | 6.3 | 5.8 |
--------------------------------------------------------------------------------
| Number of personnel, average | | | 222 | 258 | 248 |
--------------------------------------------------------------------------------
| Number of personnel, end of | | | 220 | 258 | 234 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Glaston Group | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | | |
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | 28.5 | 29.8 | 52.9 | 53.4 | 92.5 |
--------------------------------------------------------------------------------
| Services | 7.3 | 9.7 | 15.5 | 20.4 | 37.7 |
--------------------------------------------------------------------------------
| Software Solutions | 6.0 | 5.9 | 12.0 | 11.8 | 23.9 |
--------------------------------------------------------------------------------
| Other and intersegment sales | -0.2 | -0.2 | -0.4 | -1.2 | -2.4 |
--------------------------------------------------------------------------------
| Glaston Group total | 41.5 | 45.2 | 79.9 | 84.4 | 151.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT | | | | | |
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | -1.7 | -4.6 | -3.2 | -9.9 | -22.4 |
--------------------------------------------------------------------------------
| Services | 0.5 | -0.2 | 1.5 | -1.9 | -2.4 |
--------------------------------------------------------------------------------
| Software Solutions | 0.5 | 0.5 | 1.2 | 0.1 | 0.4 |
--------------------------------------------------------------------------------
| Other and eliminations | -2.1 | -1.9 | -4.0 | -3.6 | -9.3 |
--------------------------------------------------------------------------------
| EBIT excluding non-recurring | -2.8 | -6.2 | -4.5 | -15.2 | -33.6 |
| items | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | -4.3 | - | -4.3 | -21.6 |
--------------------------------------------------------------------------------
| EBIT | -2.8 | -10.5 | -4.5 | -19.5 | -55.3 |
--------------------------------------------------------------------------------
| Net financial items | 0.1 | -0.7 | -3.1 | -0.8 | -2.3 |
--------------------------------------------------------------------------------
| Result before income taxes | -2.8 | -11.3 | -7.6 | -20.3 | -57.6 |
| and non-controlling interest | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -0.6 | 1.2 | -0.2 | 2.1 | 4.0 |
--------------------------------------------------------------------------------
| Result | -3.4 | -10.0 | -7.8 | -18.1 | -53.6 |
--------------------------------------------------------------------------------
| Number of personnel, average | | | 1,065 | 1,453 | 1,344 |
--------------------------------------------------------------------------------
| Number of personnel, end of | | | 1,032 | 1,331 | 1,160 |
| period | | | | | |
--------------------------------------------------------------------------------
Segment assets
--------------------------------------------------------------------------------
| EUR million | 30.06.2010 | 30.06.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Machines | 62.9 | 67.2 | 58.0 |
--------------------------------------------------------------------------------
| Services | 11.3 | 16.5 | 13.9 |
--------------------------------------------------------------------------------
| Software Solutions | 7.1 | 7.0 | 6.5 |
--------------------------------------------------------------------------------
| Other | 0.0 | 0.0 | 0.2 |
--------------------------------------------------------------------------------
| Total segment assets | 81.3 | 90.7 | 78.7 |
--------------------------------------------------------------------------------
| Other assets | 143.2 | 173.2 | 147.9 |
--------------------------------------------------------------------------------
| Total assets | 224.5 | 263.9 | 226.7 |
--------------------------------------------------------------------------------
| Segment liabilities | | | |
--------------------------------------------------------------------------------
| EUR million | 30.06.2010 | 30.06.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Machines | 27.4 | 16.8 | 23.7 |
--------------------------------------------------------------------------------
| Services | 3.1 | 3.3 | 4.1 |
--------------------------------------------------------------------------------
| Software Solutions | 0.4 | 0.8 | 0.7 |
--------------------------------------------------------------------------------
| Other | 0.1 | 0.6 | 0.2 |
--------------------------------------------------------------------------------
| Total segment liabilities | 31.0 | 21.5 | 28.7 |
--------------------------------------------------------------------------------
| Other liabilities | 129.3 | 137.0 | 128.6 |
--------------------------------------------------------------------------------
| Total liabilities | 160.4 | 158.5 | 157.3 |
--------------------------------------------------------------------------------
| Net working capital | | | |
--------------------------------------------------------------------------------
| EUR million | 30.06.2010 | 30.06.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Machines | 35.5 | 50.4 | 34.4 |
--------------------------------------------------------------------------------
| Services | 8.2 | 13.2 | 9.8 |
--------------------------------------------------------------------------------
| Software Solutions | 6.7 | 6.3 | 5.8 |
--------------------------------------------------------------------------------
| Other | -0.1 | -0.6 | 0.0 |
--------------------------------------------------------------------------------
| Total Glaston Group | 50.3 | 69.2 | 50.0 |
--------------------------------------------------------------------------------
In segment reporting net working capital consists of inventory, external trade
receivables and trade payables and advances received.
Order intake relating to Software Solutions segment has been restated so that it
currently includes, in addition to license orders, also the software maintenance
order intake.
--------------------------------------------------------------------------------
| Order intake | | | |
--------------------------------------------------------------------------------
| EUR million | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Machines | 44.1 | 45.7 | 98.8 |
--------------------------------------------------------------------------------
| Services | 14.1 | 16.3 | 32.6 |
--------------------------------------------------------------------------------
| Software Solutions | 11.4 | 10.3 | 20.2 |
--------------------------------------------------------------------------------
| Total Glaston Group | 69.6 | 72.3 | 151.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by geographical areas | | | |
--------------------------------------------------------------------------------
| EUR million | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| EMEA | 43.2 | 52.9 | 90.7 |
--------------------------------------------------------------------------------
| Asia | 18.3 | 11.9 | 24.7 |
--------------------------------------------------------------------------------
| America | 18.4 | 19.7 | 36.4 |
--------------------------------------------------------------------------------
| Total | 79.9 | 84.4 | 151.8 |
--------------------------------------------------------------------------------
QUARTERLY NET SALES, OPERATING RESULT AND ORDER BOOK
--------------------------------------------------------------------------------
| Machines | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 28.5 | 24.3 | 21.8 | 17.2 | 30.1 | 22.8 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.0 | 0.0 | 0.1 | 0.0 | -0.3 | 0.7 |
--------------------------------------------------------------------------------
| Net sales | 28.5 | 24.3 | 21.9 | 17.3 | 29.8 | 23.6 |
--------------------------------------------------------------------------------
| Share of | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| associates' and | | | | | | |
| joint ventures' | | | | | | |
| results | | | | | | |
--------------------------------------------------------------------------------
| EBIT excluding | -1.7 | -1.5 | -7.7 | -4.9 | -4.6 | -5.3 |
| non-recurring | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | -5.9 | -6.1 | -35.0 | -28.2 | -15.4 | -22.3 |
| non-recurring | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | - | - | -12.1 | - | -3.8 | - |
| items | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -1.7 | -1.5 | -19.8 | -4.9 | -8.4 | -5.3 |
--------------------------------------------------------------------------------
| EBIT-% | -5.9 | -6.1 | -90.5 | -28.2 | -28.1 | -22.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Services | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 7.0 | 8.0 | 7.9 | 8.4 | 9.2 | 10.4 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.2 | 0.2 | 0.4 | 0.7 | 0.6 | 0.3 |
--------------------------------------------------------------------------------
| Net sales | 7.3 | 8.2 | 8.2 | 9.1 | 9.7 | 10.7 |
--------------------------------------------------------------------------------
| EBIT excluding | 0.5 | 1.0 | -0.5 | -0.1 | -0.2 | -1.7 |
| non-recurring | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | 6.6 | 12.1 | -5.5 | -1.1 | -1.7 | -16.0 |
| non-recurring | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | - | - | -2.5 | - | -0.3 | - |
| items | | | | | | |
--------------------------------------------------------------------------------
| EBIT | 0.5 | 1.0 | -2.9 | -0.1 | -0.4 | -1.7 |
--------------------------------------------------------------------------------
| EBIT-% | 6.6 | 12.1 | -35.6 | -1.1 | -4.5 | -16.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Software Solutions | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 6.0 | 6.0 | 6.3 | 5.8 | 5.9 | 6.0 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net sales | 6.0 | 6.1 | 6.3 | 5.8 | 5.9 | 6.0 |
--------------------------------------------------------------------------------
| Share of | - | - | 0.0 | 0.0 | 0.0 | 0.0 |
| associates' and | | | | | | |
| joint ventures' | | | | | | |
| results | | | | | | |
--------------------------------------------------------------------------------
| EBIT excluding | 0.5 | 0.7 | -0.2 | 0.5 | 0.5 | -0.4 |
| non-recurring | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | 7.8 | 11.7 | -2.9 | 7.7 | 8.7 | -6.0 |
| non-recurring | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | - | - | -1.5 | - | -0.3 | - |
| items | | | | | | |
--------------------------------------------------------------------------------
| EBIT | 0.5 | 0.7 | -1.6 | 0.5 | 0.2 | -0.4 |
--------------------------------------------------------------------------------
| EBIT-% | 7.8 | 11.7 | -26.2 | 7.7 | 4.1 | -6.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | | | |
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | 28.5 | 24.3 | 21.9 | 17.3 | 29.8 | 23.6 |
--------------------------------------------------------------------------------
| Services | 7.3 | 8.2 | 8.2 | 9.1 | 9.7 | 10.7 |
--------------------------------------------------------------------------------
| Software Solutions | 6.0 | 6.1 | 6.3 | 5.8 | 5.9 | 6.0 |
--------------------------------------------------------------------------------
| Other and | -0.2 | -0.2 | -0.6 | -0.7 | -0.2 | -1.0 |
| intersegment sales | | | | | | |
--------------------------------------------------------------------------------
| Glaston Group | 41.5 | 38.4 | 35.8 | 31.5 | 45.2 | 39.2 |
| total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT | | | | | | |
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | -1.7 | -1.5 | -7.7 | -4.9 | -4.6 | -5.3 |
--------------------------------------------------------------------------------
| Services | 0.5 | 1.0 | -0.5 | -0.1 | -0.2 | -1.7 |
--------------------------------------------------------------------------------
| Software Solutions | 0.5 | 0.7 | -0.2 | 0.5 | 0.5 | -0.4 |
--------------------------------------------------------------------------------
| Other and | -2.1 | -1.9 | -2.7 | -2.9 | -1.9 | -1.6 |
| eliminations | | | | | | |
--------------------------------------------------------------------------------
| EBIT excluding | -2.8 | -1.7 | -11.0 | -7.4 | -6.2 | -9.0 |
| non-recurring | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | - | - | -17.3 | - | -4.3 | - |
| items | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -2.8 | -1.7 | -28.4 | -7.4 | -10.5 | -9.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book | | | | | | |
--------------------------------------------------------------------------------
| EUR million | 30.6. | 31.3. | 31.12. | 30.9. | 30.6. | 31.3. |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | 25.6 | 32.4 | 39.8 | 35.8 | 30.8 | 38.2 |
--------------------------------------------------------------------------------
| Services | 0.9 | 0.7 | 1.6 | 1.6 | 2.3 | 4.0 |
--------------------------------------------------------------------------------
| Software Solutions | 3.7 | 3.8 | 4.1 | 3.5 | 4.0 | 3.7 |
--------------------------------------------------------------------------------
| Total Glaston | 30.2 | 36.9 | 45.5 | 40.9 | 37.1 | 45.9 |
| Group | | | | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| EUR million | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Mortgages and pledges | | | |
--------------------------------------------------------------------------------
| On own behalf | 130.8 | 0.2 | 130.8 |
--------------------------------------------------------------------------------
| Guarantees | | | |
--------------------------------------------------------------------------------
| On own behalf | 0.5 | 0.7 | 0.6 |
--------------------------------------------------------------------------------
| On behalf of others | 0.1 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Lease obligations | 12.1 | 16.4 | 13.4 |
--------------------------------------------------------------------------------
| Repurchase obligations | 0.3 | 0.4 | 0.2 |
--------------------------------------------------------------------------------
| Other obligation on own behalf | 0.0 | 0.1 | - |
--------------------------------------------------------------------------------
| Capital commitments in relation to | - | 1.0 | 0.7 |
| interests in joint ventures | | | |
--------------------------------------------------------------------------------
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 | 30.6.2010 | | 30.6.200 | | 31.12.2009 | |
| | | | 9 | | | |
--------------------------------------------------------------------------------
| | Nominal | Fair | Nominal | Fair | Nominal | Fair |
| | value | value | value | value | value | value |
--------------------------------------------------------------------------------
| Currency | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Currency | 2.9 | -0.2 | 2.1 | 0.1 | 2.6 | -0.1 |
| forwards | | | | | | |
--------------------------------------------------------------------------------
| Commodity | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Electricity | 0.6 | 0.2 | - | - | - | - |
| forwards | | | | | | |
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
| EUR million | | | |
--------------------------------------------------------------------------------
| Changes in property, plant and | 1-6/2010 | 1-6/2009 | 1-12/2009 |
| equipment | | | |
--------------------------------------------------------------------------------
| Carrying amount at beginning of the | 24.7 | 35.0 | 35.0 |
| period | | | |
--------------------------------------------------------------------------------
| Additions | 0.3 | 1.0 | 1.2 |
--------------------------------------------------------------------------------
| Disposals | -0.3 | -5.4 | -6.2 |
--------------------------------------------------------------------------------
| Depreciation and amortization | -1.8 | -2.2 | -4.1 |
--------------------------------------------------------------------------------
| Impairment losses and reversals of | -0.2 | -0.2 | -1.2 |
| impairment losses | | | |
--------------------------------------------------------------------------------
| Reclassification and other changes | -0.5 | 0.3 | -0.1 |
--------------------------------------------------------------------------------
| Exchange differences | 0.8 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Carrying amount at end of the period | 23.1 | 28.5 | 24.7 |
--------------------------------------------------------------------------------
At the end of the review period, Glaston Group did not have contractual
commitments to acquire property, plant and equipment.
SHAREHOLDER INFORMATION
Largest shareholders 30 June, 2010
--------------------------------------------------------------------------------
| | Shareholder | Number of | % of |
| | | shares | shares and |
| | | | votes |
--------------------------------------------------------------------------------
| 1 | GWS Trade Oy | 13 446 700 | 17.0 |
--------------------------------------------------------------------------------
| 2 | Oy G.W.Sohlberg Ab | 12 819 400 | 16.2 |
--------------------------------------------------------------------------------
| 3 | Sumelius Birgit | 3 644 200 | 4.6 |
--------------------------------------------------------------------------------
| 4 | Fondita Nordic Micro Cap Investment Fund | 2 350 000 | 3.0 |
--------------------------------------------------------------------------------
| 5 | Oy Investsum Ab | 1 820 000 | 2.3 |
--------------------------------------------------------------------------------
| 6 | Suutarinen Helena Estate | 1 802 400 | 2.3 |
--------------------------------------------------------------------------------
| 7 | Von Christierson Charlie | 1 600 000 | 2.0 |
--------------------------------------------------------------------------------
| 8 | Investment Fund Aktia Capital | 1 484 650 | 1.9 |
--------------------------------------------------------------------------------
| 9 | Sumelius Bjarne Henning | 1 254 840 | 1.6 |
--------------------------------------------------------------------------------
| 10 | Sumelius-Koljonen Barbro | 1 206 875 | 1.5 |
--------------------------------------------------------------------------------
| 11 | Sumelius-Fogelholm Birgitta Christina | 1 014 000 | 1.3 |
--------------------------------------------------------------------------------
| 12 | Evli Alexander Management Oy | 838 582 | 1.1 |
--------------------------------------------------------------------------------
| 13 | Sumelius Bertil Christer | 803 800 | 1.0 |
--------------------------------------------------------------------------------
| 14 | Huber Karin | 800 800 | 1.0 |
--------------------------------------------------------------------------------
| 15 | Investment Fund Alfred Berg Small Cap | 700 000 | 0.9 |
| | Finland | | |
--------------------------------------------------------------------------------
| 16 | Fontell Niilo Armas | 640 700 | 0.8 |
--------------------------------------------------------------------------------
| 17 | Nordea Life Assurance Finland Ltd | 635 207 | 0.8 |
--------------------------------------------------------------------------------
| 18 | Pihkala-Vlassis Anna Marja | 615 520 | 0.8 |
--------------------------------------------------------------------------------
| 19 | Paloheimo Arvi Martin-Brand | 510 000 | 0.6 |
--------------------------------------------------------------------------------
| 20 | Special Investment Fund EQ | 500 000 | 0.6 |
| | Pikkujättiläiset | | |
--------------------------------------------------------------------------------
| Total 20 largest shareholders | 48 487 674 | 61.4 |
--------------------------------------------------------------------------------
| Other shareholders | 30 787 126 | 38.5 |
--------------------------------------------------------------------------------
| Not in the book-entry securities system (joint | 75,200 | 0.1 |
| account) | | |
--------------------------------------------------------------------------------
| Total | 79,350,000 | 100.0 |
--------------------------------------------------------------------------------
| Treasury shares | -838,582 | 1.1 |
--------------------------------------------------------------------------------
| Total excluding treasury shares | 78,511,418 | |
--------------------------------------------------------------------------------
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 - June EUR 0.3(0.3) million.
During the review period there were no other related party transactions whose
terms would differ from the terms in transactions with third parties than what
has been described in section “Transactions with joint ventures and associates”.
Share-based payments
The Board of Directors of Glaston Corporation decided in June, 2010, a new
share-based incentive plan to form a part of the long-term incentive and
commitment program for the top management of Glaston.
The share-based incentive plan offers the participants a possibility to earn
Glaston's shares as remuneration for achieving established earning criteria. The
plan has one earning period covering the years 2010 and 2011, and the earnings
criteria is the development of the consolidated operating profit of Glaston. A
possible award shall be paid after the release of the 2011 financial statements
in spring 2012.
An aggregate gross maximum number of Glaston shares granted under the plan is
approximately 2.5 million shares. Income taxes and other statutory costs arising
from the award will be deducted from the gross number of shares before share
delivery.
The expenses arising from Glaston's share-based incentive plans were EUR 0.1
(0.1) million during the review period.
Transactions with joint ventures and associates
Glaston had leased property to the joint venture during the review period.
The shares in INTERPANE Glass Oy were sold to Rakla Finland Oy on 9 April, 2010.
As a part of the ownership arrangement, Glaston waived its rights to EUR 3.3
million of the loan granted to INTERPANE Glass Oy. The result effect of the
waiver of the loan is included in the EUR 2.7 million financial expense booked
from the arrangement in the first quarter.
Glaston did not have transactions with the associate.
--------------------------------------------------------------------------------
| Transactions with joint ventures and joint venture balances |
--------------------------------------------------------------------------------
INTERPANE Glass Oy was Glaston's joint venture during 31 March, 2009 - 9 April,
2010.
--------------------------------------------------------------------------------
| EUR million | 1-6/ | 1-6/ | 1-12/ |
| Transcations | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Sales to joint ventures | - | - | 0.0 |
--------------------------------------------------------------------------------
| Other operating income from joint | 0.1 | 0.1 | 0.3 |
| ventures | | | |
--------------------------------------------------------------------------------
| Interest income from joint ventures | 0.1 | 0.1 | 0.3 |
--------------------------------------------------------------------------------
| Other financial expenses | -3.3 | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Receivables and liabilities | | | |
--------------------------------------------------------------------------------
| Current receivables | - | 0.4 | 1.2 |
--------------------------------------------------------------------------------
| Non-current loan receivables | - | 5.4 | 5.9 |
--------------------------------------------------------------------------------
| Trade payables | - | 0.0 | 0.1 |
--------------------------------------------------------------------------------
