Glaston Corporation publishes pro forma quarterly financial information related to the acquisition of Bystronic glass

Glaston Corporation          Stock Exchange Release       7 August 2019 at 12.30
EET
Glaston Corporation publishes unaudited pro forma financial information per
quarter for the year 2018 and for the first quarter of 2019.
The pro forma financial information is presented for illustrative purposes in
order to reflect the hypothetical impact of the acquisition of Bystronic
glass to the Company’s results of operations, if it had taken place as of 1
January 2018. The pro forma information is presented separately for group level
and for the segments.
On 1 April 2019, Glaston Corporation completed the acquisition of Swiss-German
based globally operating Bystronic glass, a company offering high-end machinery,
systems and services for the processing of glass. Bystronic glass is
consolidated as part of Glaston Corporation as of 1 April 2019 and consequently,
the Company has two reporting segments: Glaston and Bystronic glass. In
addition, the company will report net sales, order intake and order book for
Heat Treatment Technologies, Bystronic Glass Technologies, Emerging Technologies
(combining Emerging Technologies of the Glaston segment and Bystronic glass
display business), Services (combining the service sales of the heat treatment
services in the Glaston segment and Services & Spare Parts in the Bystronic
glass segment) and Other product areas as of 1 April 2019.
Additional information on the basis of presentation of the pro forma financial
information is included in Glaston’s Rights Issue Prospectus, dated 29 May 2019.
The Finnish language prospectus is available on the company’s website.
In the following tables unaudited pro forma financial information for the group
as well as for the segments for the first quarter of 2019 and each of the
quarters in 2018 are presented.
Glaston is applying the new leasing standard ‘IFRS 16 leases’ fully
retrospectively from 1 January 2019 and has restated the comparable figures
accordingly for 2018.

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

GLASTON GROUP
GLASTON AND BYSTRONIC GLASS PRO FORMA 2018

  CONDENSED STATEMENT OF PROFIT OR
  LOSS
  EUR million                              1      10       7       4       1
                                      -3/201  -12/20  -9/201  -6/201  -3/201
                                           9      18       8       8       8

  Net sales                             44.3    44.9    47.3    55.4    54.2
  Other operating income                 0.6     0.4    0.,4     1.2     0.2
  Expenses                             -41.8   -45.8   -43.4   -51.5   -49.6
  Depreciation, amortization and        -1.7    -1.8    -1.6    -1.6    -1.6
  impairment
  Depreciation of right-of-use          -0.6    -0.6    -0.6    -0.7    -0.6
  assets
  Operating profit                       0,8    -2.9     2.0     2.8     2.5
  Financial items, net                  -0.3    -0.7    -0.8    -0.6    -0.6
  Interest expenses on lease            -0.1    -0.1    -0.1    -0.2    -0.2
  liabilities
  Result before income taxes             0.3    -3.8     1.1     2.1     1.7
  Income taxes                          -0.7     0.7    -0.2     0.0    -0.8
  Profit / loss for the period          -0.3    -3.0     0.9     2.1     1.0

  Number of shares, average,           51302   51302   51302   51302    5130
  adjusted with share issue                                                2
  (1.000)(1
  Earnings per share, EUR             -0.005  -0.059   0.017   0.042   0.019

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

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

+++-----------+-------+---------+-----------+-----------+---------+-------+
|In EUR       |Glaston|Bystronic|  Pro forma|  Pro forma|Pro forma|Glaston|
|million      |   IFRS|    glass|-adjustment|-adjustment|   adjust|    Pro|
|             |       |     IFRS|           |           |    -ment|  Forma|
|             |       |         |    PPA(2  |  Bystronic|Financing|   IFRS|
|             |       |         |           |    loans  |  costs  |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|             |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Net sales    |  101.1|    100.7|           |           |         |  201.8|
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Other        |    2.2|      0.3|           |           |         |    2.6|
|operating    |       |         |           |           |         |       |
|income       |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Changes in   |   -1.7|      7.3|       -0.4|           |         |    5.3|
|inventories  |       |         |           |           |         |       |
|of finished  |       |         |           |           |         |       |
|goods and    |       |         |           |           |         |       |
|work in      |       |         |           |           |         |       |
|progress     |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Own work     |    0.3|      0.0|           |           |         |    0.3|
|capitalized  |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Materials    |  -49.2|    -46.3|           |           |         |  -95.5|
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Personnel    |  -23.4|    -36.4|           |           |         |  -59.7|
|expenses     |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Other        |  -20.8|    -20.3|           |           |         |  -41.1|
|operating    |       |         |           |           |         |       |
|expenses     |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Depreciation,|   -3.0|     -1.2|       -2.4|           |         |   -6.6|
|amortization |       |         |           |           |         |       |
|and          |       |         |           |           |         |       |
|impairment   |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Depreciation |   -1.8|     -0.7|           |           |         |   -2.6|
|of right-of  |       |         |           |           |         |       |
|-use asset   |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Operating    |    3.8|      3.3|       -2.8|           |         |    4.4|
|result       |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Financial    |    0.1|      0.1|           |           |         |    0,3|
|income       |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Financial    |   -0.8|     -0.4|           |        0.2|     -2.0|   -3.0|
|expenses     |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Net financial|   -0.7|     -0.2|           |        0.2|     -2.0|   -2.7|
|items        |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Interest     |   -0.5|     -0.1|           |           |         |   -0.6|
|expenses on  |       |         |           |           |         |       |
|lease        |       |         |           |           |         |       |
|liabilities  |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Profit/loss  |    2.6|      3.0|       -2.8|        0.2|     -2.0|    1.1|
|before income|       |         |           |           |         |       |
|tax          |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Income tax   |   -0.7|     -0.6|        0.6|           |      0.4|   -0.2|
|expense      |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Profit/loss  |    1.9|      2.5|       -2.1|        0.2|     -1.6|    0.9|
|for the      |       |         |           |           |         |       |
|period       |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|             |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Attributable |   -0.2|         |           |           |         |   -0.2|
|to non       |       |         |           |           |         |       |
|-controlling |       |         |           |           |         |       |
|interest     |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Attributable |    2.1|      2.5|       -2.1|        0.2|     -1.6|    1.0|
|to owners of |       |         |           |           |         |       |
|the parent   |       |         |           |           |         |       |
+++-----------+-------+---------+-----------+-----------+---------+-------+
|Total        |    1.9|      2.5|       -2.1|        0.2|     -1.6|    0.9|
+++-----------+-------+---------+-----------+-----------+---------+-------+

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

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

Related deferred               5.9
tax liablity

COMPARABLE EBITDA, EBITA AND
OPERATING RESULT (EBIT)
Items affecting comparability
EUR million                                               4-6/ 2018   1-3/
                                          10  7-9/ 2018               2018
                                 1-3/   -12/
                                 2019   2018
Restucturings and disposals of   -0.8   -1.8       -0.3         0.0   -0.2
property, plant and equipment
Items affecting comparability    -0.8   -1.8       -0.3         0.0   -0.2

Comparable EBITDA
EUR million                      1-3/     10       7-9/        4-6/   1-3/
                                 2019   -12/       2018        2018   2018
                                        2018
Operating result (EBIT)           0.8   -2.9        2.0         2.8    2.5
Depreciation and amortization     2.3    2.4        2.3         2.2    2.3
EBITDA                            3.1   -0.5        4.3         5.0    4.8
Items affecting comparability     0.8    1.8        0.3         0.0    0.2
Comparable EBITDA                 3.9    1.3        4.6         5.0    5.0
% of net sales                  8.8 %  2.9 %      9.8 %       9.1 %  9.1 %

Comparable EBITA
EUR million                      1-3/              7-9/        4-6/   1-3/
                                 2019     10      2018         2018   2018
                                        -12/
                                        2018
Operating result (EBIT)           0.8   -2.9        2.0         2.8    2.5
Amortization and purchase         1.2    1.2        1.2         1.2    1.2
price allocation
EBITA                             2.0   -1.7        3.2         4.0    3.7
Items affecting comparability     0.8    1.8        0.3         0.0    0.2
Comparable EBITA                  2.8    0.1        3.5         4.0    3.9
% of net sales                  6.4 %  0.2 %      7.5 %       7.2 %  7.1 %

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

SEGMENT INFORMATION

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

The reportable segment applies Glaston Group's accounting and measurement
principles. Glaston follows the same commercial terms in transactions between
the segment as with third parties. The reportable segment consists of operating
segments, which have been aggregated in accordance with the criteria of IFRS
8.12.

Operating segments have been aggregated, when the nature of the products and
services is similar, the nature of the production process is similar, as well as
the type or class of customers. Glaston’s and Bystronic glass’s business
consists of the manufacture and sale of glass processing machines as well as the
service operations for these machines. There is a high level of integration
between machines and maintenance. Product development as well as sales and
distribution are shared functions, serving both business areas. Their customers
are the same, as is their market development, which is linked to the general
development of the global market. Also the methods to distribute products or to
provide services are similar.

GLASTON
EUR million       1-3/2019  10-12/2018  7-9/2018  4-6/2018  1-3/2018
Comparable             0.5         3.0       1.6       1.4       1.6
EBITA
% of net sales       2.5 %      10.9 %     6.8 %     5.4 %     6.3 %

Net sales             20.8        27.8      23.0      25.6      24.8
Comparable             0.0         2.6       1.1       0.9       1.1
EBIT
Comparable           0.2 %       9.2 %     4.7 %     3.6 %     4.4 %
EBIT-%
Items                 -0.8        -1.3      -0.3      -0.0      -0.2
affecting
comparability
Operating             -0.8         1.2       0.7       0.9       0.9
result EBIT
% of net sales       -3.8%        4.5%      3.2%      3.6%      3.8%

BYSTRONIC
GLASS
EUR million       1-3/2019  10-12/2018  7-9/2018  4-6/2018  1-3/2018
Comparable             2.3        -2.9       2.0       2.6       2.3
EBITA
% of net sales        9.8%      -17.2%      8.1%      8.7%      7.8%

Net sales             23.6        17.1      24.4      29.8      29.4
Comparable             1.6        -3.7       1.3       1.9       1.6
EBIT
Comparable            6.7%      -21.5%      5.2%      6.4%      5.4%
EBIT-%
Items                    -        -0,5         -         -         -
affecting
comparability
Operating              1.6        -4.2       1.3       1.9       1.6
result EBIT
% of net sales        6.7%      -24.6%      5.2%      6.4%      5.4%

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

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

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

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

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

For further information, please contact:
CFO Päivi Lindqvist , tel. +358 10 500 500
Vice President, IR, Communications and Marketing Joséphine Mickwitz, tel. +358
10 500 5070
Glaston Corporation
Glaston is the glass processing industry’s innovative technology leader
supplying equipment, services and solutions to the architectural, automotive,
solar and appliance industries. The company also supports the development of
emerging technologies integrating intelligence to glass.
As of April 2019, Bystronic glass is part of Glaston Group. Together we are
committed to providing our clients with both the best know-how and the latest
technologies in glass processing, with the purpose of building a better tomorrow
through safer, smarter, and more energy efficient glass solutions. We operate
globally with manufacturing, services and sales offices in 12 countries.
Glaston’s shares (GLA1V) are listed on Nasdaq Helsinki Ltd.

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


                 

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