Glaston Capital Markets Day /11/2018 GLASTON CMD 2018

Transcription

1 Glaston Capital Markets Day

2 Financials in a nutshell CFO, Päivi Lindqvist 2

3 Annual net sales ,6 42,7 122,2 34,4 124,5 123,4 32,5 19,2 107,1 17,0 109,7 15,6 103,0 10, % 73,0 20 % 87,8 5 % 92,1 13 % 104,2-13 % 90,2 4 % 94,1-2 % 92, /2018 L12M figures as they were reported HT Technologies, ET & Services Pre-Processing, Tools & Other 2017 & 2018 according to IFRS15

4 Annual net sales % 73,0 20 % 87,8 5 % 92,1 13 % 104,2-13 % 90,2 4 % 94,1-2 % 92, /2018 L12M figures as they were reported HT Technologies, ET & Services 2017 & 2018 according to IFRS15

5 MEUR Annual EBIT and EBIT% ,0 % 6 3,9 % 4,9 % 4,6 % 4,1 % 5,0 % 4,0 % 4 2 1,7 % 2,1 4,9 6,1 2,6 % 2,8 5,0 4,2 3,0 % 2,0 % 1,0 % 0,0 % 0-1,0 % -2-3,4-2,0 % -2,9 % -3,0 % -4 *) *) *) *) /2018 L12M **) **) **) -4,0 % EBIT EBIT% *) EBIT before extraordinary items **) Comparable 9/11/2018 EBIT GLASTON CMD 2018

6 Annual ROCE% ,8 7,9 10,0 4,6 9,2 6, , *) /2018 *) Continuing operations

7 MEUR End of 2017 balance sheet Cash 12,4 Debt 13,3 Goodwill 30,6 Equity 37,1 Fixed assets 17,9 Working capital 33,0 Working capital 44,3-11,3 6,6 0,9 Assets Liabilities NWC Net assets (excl. goodwill) Net debt

8 Typical machine delivery project Project revenue recognized using POC method Accrued cost compared to budget determine the percentage of completion Cost budgets reviewed monthly Majority of costs incur 1-2 months before delivery Majority of project costs are components from external suppliers Typically positive cash flow througout the project Month 1 Down payment Order recorded Project start 0% 0% 0% Revenue and cost 10% Month 6 Delivery 30% Month Cumulative revenue Cash flow 80% Month 7 Installation start 85% Cumulative cost 90% Month 9 Acceptance 100% Warranty Other Design 100% Installation 75% 50% Assembly 25% 0% -25% Components -50% -75% Month Assumed 30% project margin Cumulative cash in Cumulative cash out Net cumulative cash

9 MEUR Cash flow seasonality 10 8,9 8 7,3 6 4, ,4-1,8 2,0 2,2 4,8 4,6-4,4-3,8-2,2-2,2-1,2-5,9 5,2-6,6 2,0 1,3-0,7-2, ,4-10 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Change in net working capital Net cash flow from operating activities 2017 & 2018 according to IFRS15

10 Our financial targets published in 2016 remain unchanged Annual growth of net sales exceeding market growth (CAGR) Comparable operating margin (EBIT) above 8% at the end of the period Return on capital employed (ROCE) of more than 20% at the end of the period In addition, Glaston seeks growth by exploring M&A opportunities, especially in the glass processing industry equipment, services and software areas 10

11 Strategic targets Annual net sales growth to exceed market growth Higher than market Services growth driving Glaston growth above market Upside potential from Emerging Technologies Flat glass demand growth expected at 4.3% annually Upside potential ~15M ~ ~Market growth growth > Market ~Market growth growth 110 M 4.6%

12 Strategic targets EBIT margin to exceed 8% and ROCE% to exceed 20% Profitability boosted by increased share of higher margin Services business and gross margin improvement in Heat Treatment Technologies as well as fixed cost growth clearly below net sales growth Emerging Technologies margin higher than Group average Thanks to light balance sheet, EBIT is the main driver for ROCE% improvement 4.6% 2017 HT margin 12

13 Dividend policy 30-50% of the comparable earnings per share High number of shares (193.6 million) and earnings volatility have lead to inconsistent profit distribution Glaston is exploring the possibility of reducing the number of shares by a reverse split with the objective to increase interest in the company s share and improve conditions for share trading increase flexibility in connection to potential return of capital Reverse split is subject to a decision by Glaston s General Meeting Dividend/capital return per share and Earnings per share ,02 0,01 0,01 0,02 0,007 0,006 0,01 0,01 0, ,005-0,01-0, Dividend per share Earnings per share 13

14 2019 reporting changes IFRS 16 Leases to be introduced from the beginning of 2019 The standard removes the distinction between finance and operating leases All leases will be recorded on the balance sheet as assets and liabilities at the discounted value of the lease payments Rent expense will be replaced with depreciation and interest expenses EBITDA will increase (rent expenses will disappear) EBIT will increase but less than EBITDA (rent expenses replaced by depreciation) Gearing will increase (interest bearing debt will increase) ROCE% will change (financial expenses will increase, interest bearing debt will increase) Potential impacts on strategic targets will be considered when restatements finalized Glaston will announce restated 2018 financials before Q publication 14

15 Our financial targets published in 2016 remain unchanged Annual growth of net sales exceeding market growth (CAGR) Comparable operating margin (EBIT) above 8% at the end of the period Return on capital employed (ROCE) of more than 20% at the end of the period In addition, Glaston seeks growth by exploring M&A opportunities, especially in the glass processing industry equipment, services and software areas 15