Glaston as an Investment


Factsheet

Investors » Glaston as an Investment » Factsheet


Strategy and Financial Targets

Investors » Glaston as an Investment » Strategy and Financial Targets

In March 2016, Glaston’s Board of Directors confirmed the company’s new strategic priorities and financial targets for the period 2016–2018. Glaston is moving to a new strategic phase. The cornerstones are growth, technology leadership and the industry’s best customer experience.

Glaston aims to be its industry’s leading pioneer, whose identifying characteristics are technology leadership and high quality. Glaston’s core expertise is in flat tempering technology. In this segment, our global market share is slightly under 40% *). Through its continuous product development and regularly renewed product offering, Glaston will further strengthen its position and competitiveness in the market as well as in new machine sales and services. The growth target will be supported by growing demand for architectural glass.

To support its core business, Glaston will seek growth opportunities not only in flat tempering technology but also in other safety glass groups, such as bending, tempering-bending and laminating. Innovative glass technologies and digitalisation will bring significant new business opportunities to Glaston.

New glass technology solutions enables Glaston to expand business opportunities into new segments and areas. Glaston has made a strategic investment in a California company specialising in the development of smart glass.

An extensive and increasing installed machine base creates the foundation for growth in services.

Glaston Corporation’s Board of Directors has confirmed financial targets for Glaston Corporation
Glaston expects the glass machine market to grow at around 3-5% per year up to 2018.

Glaston’s financial objectives for the period 2016–2018 are:
– Annual growth of net sales exceeding market growth (CAGR)
– Comparable operating profit 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


President & CEO’s Review

Investors » Glaston as an Investment » President & CEO’s Review

President & CEO Arto Metsänen in the Interim Report on 26 April 2017:
“In the first quarter, the glass processing market was quiet and the number of new orders was relatively low. The large number of orders in the final quarter of the previous year also affected the order intake in the early part of the year. In addition, as customers’ decision-making times lengthened, a number of service and machine deals were postponed in the first quarter until the current quarter.

Due to the low number of deliveries, January-March net sales were low and totalled EUR 22.8 million. The comparable operating result was EUR 0.0 (0.7) million. The order book was at a good level, EUR 45.1 million, up 31% from the corresponding period of the previous year. This creates a good foundation for rest of the year.

The anticipated quiet first quarter does not change our assessment of the year as a whole. Conditions for operational development and profitable growth are good. Our short-term focus is on new orders and ensuring a first-class customer experience.

As a pioneer in our field, we want to be involved in developing the glass technologies of the future. In emerging glass technologies, we are actively seeking new business opportunities, because we expect this market to grow strongly in the next few years. To support our growth objective, we established the Emerging Technologies unit in January. This brings clarity to our operating model and distinguishes us from our competitors. Our investment in a Californian nanotechnology company is part of the Emerging Technologies unit’s activities. In the nanotechnology project, the development work of a pilot line progressed. In addition to this project, we are actively engaged in discussions with a number of companies on the development of new glass technologies and their practical application.”



Guidance

Investors » Glaston as an Investment » Guidance

Outlook

As in Glaston’s January-March 2017 Interim Report, published on 26 April 2017:

In the first quarter of 2017, the glass processing market was quiet, as anticipated. The prolonged uncertainty in the global economy and increasing political tensions in some regions will impact customers’ willingness to invest, and decision-making times have lengthened. There are no visible signs of a permanent change in the market, however. We expect that positive market development will still continue.

A higher order book than the previous year, positive market development and the cost-saving measures undertaken create good conditions for the development of operations in 2017. We expect the full-year comparable operating result to improve from 2016. (In 2016 the comparable operating result was EUR 2.8 million.)

 

Previous Outlooks

As in Glaston’s Financial Statements release, published on 10 February 2017:

The development of the glass processing market was positive at the end of 2016. There are currently no signs of a weakening of the market, and positive development is expected to continue. Despite good demand, customers are often taking longer to make their investment decisions due to the uncertain global economy and political developments.

A higher order book than the previous year, positive market development and the cost-saving measures undertaken create good conditions for the development of operations in 2017. For the first quarter, a relatively small number of deliveries are scheduled, as a result of which the comparable operating result for the period is expected to be lower than the corresponding period a year earlier.

Glaston expects the full-year comparable operating result to improve from 2016. (In 2016 the comparable operating result was EUR 2.8 million.)

As in Glaston’s January-September 2016 Interim report, published on 31 October 2016:
In the final quarter of the year, the glass processing market is expected to develop positively and new machine orders to grow markedly compared with the third quarter.

The good second-quarter order intake and the large number of deliveries scheduled for the fourth quarter will increase net sales considerably in the latter part of the year compared with previous quarters. The savings measures undertaken will also have a positive impact on the result.

Glaston revised its outlook on 4 August 2016. Glaston expects 2016 net sales to be approximately EUR 105–110 million and the comparable operating profit to be approximately EUR 2–4 million. (In 2015 net sales were EUR 123.4 million and comparable operating profit was EUR 6.1 million).

As in Glaston’s January – June 2016 Half Year Financial Report, published on 9 August 2016:

In the second half of the year, the glass processing market is expected to remain challenging as economic uncertainty continues.

In Europe, a deterioration of the economic outlook and increased instability in the operating environment will be reflected in customers’ investment decisions. Despite this, Central and Eastern Europe offer growth opportunities. We expect stable development in the North American market. In South America, the market will remain quiet, particularly in Brazil. In the Asian market, we expect cautious growth.

Glaston expects 2016 net sales to be approximately EUR 105 – 110 million and the comparable operating profit to be approximately EUR 2 – 4 million. (In 2015 net sales were EUR 123.4 million and comparable operating profit was EUR 6.1 million).

As in Glaston’s Interim report Q1/2016, published on 28 April 2016:
Glaston still expects the overall market to develop on a cautiously positive note. The North American market and the EMEA area are expected to develop positively. We expect the Asian markets to remain stable at their current level. In China, market activity continues to be low. In South America, market continues to be subdued, particularly in Brazil.

In the heat treatment machines market, no significant changes are anticipated, and we expect demand for heat treatment machines to remain at the previous year’s level. The outlook for the services market continues to be cautiously positive.

Glaston’s outlook remains unchanged. Due to the subdued market situation and the reduced order book, we expect 2016 net sales to be slightly below the 2015 level. We expect the operating profit, excluding non-recurring items, to be at the 2015 level. (In 2015 net sales were EUR 123.4 million and comparable operating profit, excluding non-recurring items, was EUR 6.1 million).

 

As in Glaston’s Financial Statement Bulletin 2015, published on 11 February 2016: OUTLOOK
In the final quarter of 2015, signs of caution appeared in Glaston’s markets. Looking at 2016, we expect the overall market to develop positively but cautiously.

We expect the North American market to continue to develop well also in 2016. We expect the EMEA area to develop positively. In Asia, we expect the Chinese market to remain stable at its current level, and we expect growth in the Pacific area.

The heat treatment machines market will continue to be reasonably subdued. We expect that demand for new heat treatment machines will be weaker than the previous year during the early part of the year. Despite a challenging market outlook, Glaston’s position in the market is good. Our wide product range corresponds excellently with customers’ needs. As the technology leader, we will continue our goal-oriented development work, in which digitalisation and new technologies will present new business opportunities.

The outlook for the services market is cautiously positive. Our growth objectives are supported by Glaston’s strong market position, comprehensive service network and up-to-date product range.

Due to the subdued market situation and reduced order book, we expect 2016 net sales to be slightly below the 2015 level. We expect the operating profit, excluding non-recurring items, to be at the 2015 level. (In 2015 net sales were EUR 123.4 million and operating profit, excluding non-recurring items, was EUR 6.1 million).

As in Glaston’s Interim report Q3/2015, published on 26 October 2015: Outlook unchanged

We continue to expect that Glaston’s markets will grow moderately in 2015. In sales of new machines, we expect good development to continue in the EMEA area and in North America. Economic uncertainty in the EMEA area as well as its local political tensions might, however, reduce customers’ willingness to invest.

The very subdued Asian market showed signs of recovery in July-September and we expect the favourable development to continue in the latter part of the year. We expect demand in the South American market to remain subdued in the fourth quarter. In the services market, we expect growth to continue in all product groups and particularly in upgrades.

Glaston expects that Continuing Operations’ 2015 net sales and comparable operating profit, excluding non-recurring items, will exceed the level of 2014 (in 2014 net sales were EUR 109.7 million and comparable operating profit, excluding non-recurring items, was EUR 5.5 million).

As in Glaston’s Interim report Q2/2015, published on 6 August 2015: OUTLOOK
We expect Glaston’s markets to grow moderately in 2015. In sales of new machines, we expect good development to continue in the EMEA area and in North America. We expect the South American and Asian markets to remain at their present level in the short term. In the services market, we expect the good development to continue during the latter part of the year and particularly so with respect to upgrades.

At the heart of Glaston’s strategy is profitable growth. Glaston’s expertise is strongest in heat treatment technology and service business, on which we can now fully focus our resources. We consider growth conditions to be good in these product groups.

Glaston revises its business outlook for 2015. Glaston expects that Continuing Operations’ 2015 net sales and comparable operating profit, excluding non-recurring items, will exceed the level of 2014 (in 2014 net sales were EUR 109.7 million and comparable operating profit, excluding non-recurring items, was EUR 5.5 million).

Previous outlook: Glaston expects that 2015 net sales and operating profit, excluding non-recurring items, will exceed the level of 2014 (in 2014, net sales were EUR 124.5 million and operating profit, excluding non-recurring items, was EUR 4.9 million).


Business Operations

Investors » Glaston as an Investment » Business Operations

Glaston’s operations are divided into the Machines and Services business areas. Our products and services are mainly oriented towards the construction, appliance, automotive and solar industries.

Glaston’s Machines business’ product portfolio covers a wide and technologically advanced range of glass processing machines for the flat tempering, bending, bending-tempering and laminating of glass.

Flat tempering machines are the most significant product group. The FC500™ tempering line was the leading product in terms of sales in year 2016, and its share of total sales is growing further.

A strong market position, broad product portfolio, strong customer relations and diverse development work will take the Machines business forward in the direction shown by the Glaston’s strategy.

In 2016 the Machines’ net sales totalled EUR 67.4 million.

Glaston’s Services business provides glass processing machine maintenance services, machine upgrades and modernisations, spare parts, and the tools required in glass working. The Services business’ remote monitoring and diagnostics services as well as training and consulting help customers improve the efficiency of their processes.

Glaston’s offering ensures uninterrupted production capacity for our customers and efficient usage throughout a machine’s lifecycle. Our comprehensive service network is one of the most important factors in our competitiveness.

In 2016 Services’ net sales totalled EUR 41.8 million.


Research and Development

Investors » Glaston as an Investment » Research and Development

Our technology leadership means that we focus on customer-oriented product development and on operational development in all market conditions.

Our product development is guided by the development of solutions requiring deeper technological expertise and by new business opportunities presented by digitalisation. To move the industry forward, we have established in our product development a special department focused on automation and digitalisation. Glaston Showroom, the technology centre we founded in Tampere in 2015, is taking our technology leadership forward and boosting our operational vitality.

In 2015 we invested in a US nanotechnology company, and close cooperation with them and other leading pioneers of the sector is inspiring us to seek and develop new approaches to glass processing.

For Glaston, it has always been important to develop high-quality and advanced glass processing machines, which have achieved the status of standards in many countries. We hold patents for all of our significant solutions. In 2016 R&D expenditure was approximately 1.6% of net sales.

New business opportunities

  • Innovative glass technologies and digitalisation will bring significant new business opportunities.
  • New glass technologies will facilitate expansion into new areas » investment in Californian nanotechnology company specialised in developing intelligent glass.
  • Utilisation of opportunities brought by digitalisation. Glaston will develop smart machines and services.

Why invest in Glaston

Investors » Glaston as an Investment » Why invest in Glaston

Glaston’s core expertise is in flat tempering technology. The company’s goal is to strengthen further its strong position and competitiveness through continuous product development and a regularly renewed product offering. The growth target is supported by growing demand for architectural glass. To support its core business, Glaston will seek growth opportunities not only in flat tempering technology but also in other safety glass product groups, such as bending, tempering-bending and laminating.

Glaston expects the glass machine market to grow at 3-5% per year up to 2018.

Growth factors:

Construction growth is driven by:

  • Urbanisation, safety; legislation, regulations and instructions
  • Environmental factors » growing demand for energy-saving glass and new types of glass
  • Design » use of glass in buildings is increasing, and particularly use of special glass

Automotive industry growth is driven by:

  • Increasing number of vehicles, particularly in developing countries
  • Design
    • Relative share of glass is growing, particularly special glass
    • Use of thin glass, lighter vehicles

Solar energy industry growth is driven by:

  • Growing environmental awareness
    • Investments in renewable energy sources
  • Costs
  • Paris climate agreement 2015
  • Favourable regulatory environment
  • We hold patents for all of our significant solutions
  • In 2016 R&D expenditure was approximately 2% of net sales
  • Innovative glass technologies and digitalisation will bring significant new business opportunities
  • New glass technologies will facilitate expansion into new areas » investment in Californian nanotechnology company
  • Utilisation of opportunities brought by digitalisation. Glaston will develop intelligent machines and services
  • Glaston is present worldwide; machine production in Finland and China and more than 20 sales and service points
  • Glaston has a strong position in the service market. Our service network and offering are the sector’s widest and distinguish us from our competitors

Financial targets 2016–2018

  • Annual growth of net sales exceeding market growth
  • Operating margin (EBIT) > 8%
  • Return on capital employed ROCE > 20%

Mergers and Acquisitions

Investors » Glaston as an Investment » Mergers and Acquisitions

TimeCompany/IndustryEventDescription
1981Tamglass OyAcquisitionKyro acquires the entire share stock of Tamglass Oy, founded in 1970. Exports already account for 93 % of Tamglass’ net sales of FIM 54.7 million and the company has 148 employees. Kyro becomes a diversified company.
1985TecnomenAcquisitionKyro expands its electronics business by acquiring Tecnomen, which supplies Tamglass with automation and control systems. The company also operates in the field of telecommunications.
1986Glaston forest holdings and local electricity networkDivestmentThe company sells its forest holdings to Suomi-Salama and its local electricity distribution network to Oy Nokia Ab.
1995Glaston’s forest industry businessDivestmentKyro sells its forest industry business to Metsä-Serla Oy, amid a major restructuring of the entire sector.
1996Cattin MachinesAcquisitionCattin Machines, a Swiss manufacturer of safety glass machines, is acquired for the Tamglass Group.
2002Finton OyAcquisitionThe Tamglass Group’s glass processing business is supplemented by the balcony glazing manufacturer Finton Oy from Lahti Finland.
2002Uniglass OyAcquisitionThe Tamglass Group’s machine business is supplemented by the flat tempering machine manufacturer Uniglass Oy from Tampere Finland.
2003Z. Bavelloni Immobiliare S.p.A. and Glasto Holding B.V. as well as Suomen Lämpölasi OyAcquisitionKyro acquires Italian Z. Bavelloni Immobiliare S.p.A’s and Dutch Glasto Holding B.V’s all share as well as a majority shareholding in Suomen Lämpölasi Oy. Glaston Technologies, consisting of Tamglass and Bavelloni, becomes the world’s largest comprehensive supplier of glass processing machines, and its glass processing product range becomes the biggest in Finland.
2005Glaston’s hydropower and district heat distribution businessesDivestmentAt the end of the year, the Group sells its hydropower and district heat distribution businesses.
2007Glaston’s Energy BusinessDivestmentKyro sells its energy business area to M-real Oyj.
2007A+W Software AG GroupAcquisitionGlaston acquires the German A+W Software Group in July 2007, after which the Business Area, Software Solutions, is formed.
2009Tamglass Glass’s insulated and architectural glass processing operationsDivestmentGlaston Corporation’s subsidiary Tamglass Glass Processing Ltd. sells its insulated and architectural glass processing operations to INTERPANE Glass Oy.
2010Glass processing operationsDivestmentGlaston’s joint venture, the glass processing company INTERPANE Glass Oy, is sold to Rakla Finland Oy.
2013A+W Software GmbHDivestmentGlaston sells A+W Software to Constellation Software Inc. acting through its Friedman Operating Group.
2014GlassrobotsAcquisitionGlaston acquires the industrial property rights to all Glassrobots products.
2015Pre-processing machines businessDivestmentGlaston sells 100% of the shares of Glaston Italy S.p.A. to the local management of Glaston Italy S.p.A.

Market Information


Operational Environment

Investors » Market Information » Operational Environment

Glaston operates in glass processing machine markets worldwide and serves glass processors by delivering machines, tools and related services. Although demand for processed glass is fairly uniform worldwide, demand for machines varies both geographically and between business areas.

Operational environment in 2016
As Glaston entered 2016, broad uncertainty was evident in the glass processing market. A significant change for the better was seen only in the last quarter of the year, when a pick-up was perceptible, particularly in the EMEA area. In the North American market, customers’ decision-making slowed in the latter part of the year in both the USA and Mexico. The market situation remained reasonably good, however. In South America, the market continued to be quiet. In the Asian market area, development varied from country to country. The market in China is still on a downward trend, but in many other countries development has been positive.


Market

Investors » Market Information » Market

Glaston has divided its market areas into EMEA, America, and Asia. The EMEA area has traditionally been a strong market for Glaston and in 2016, it generated approximately 40% of Glaston’s net sales. In 2016 Americas’ share of the company’s total revenue was approximately 41% and Asia’s share 19%.

In 2016, North America and the EMEA area remained the largest markets for Glaston’s Machines business. A change took place in the North American market in the second half, when customers’ decision-making times lengthened. Competition intensified as Chinese operators strengthened their presence in the market. The South American market continued to be quiet, but outside Brazil a slight pick-up was seen towards the end of the year.

In the EMEA area, particularly in Eastern Europe and in Italy, the market developed positively. In some countries, customers’ investments were boosted by tax breaks on investments.

In the Asian market, Glaston’s success varied from area to area. Due to its competitive product offering and increased presence, Glaston achieved a leading position in the Australian and New Zealand tempering machine markets following a number of quieter years. Overall, the Southeast Asia machine market was quiet, with the exception of Vietnam. In China, customers’ activity increased in the second part of the year.

In 2016 broad uncertainty was evident in the Services business market, with demand remaining subdued with the exception of the final quarter. The strongest areas for business continued to be North America and the EMEA area. The South American market remained quiet, although indications of a recovery were perceptible in automotive business. In the Asia market area, there was positive development in Australia, New Zealand and Southeast Asia. The service market in China remained quiet.

There were fewer large modernisation and upgrade projects than the previous year. In Australia and New Zealand, active new machine business slowed sales of upgrade products. Excluding the final quarter, demand for modernisation products remained subdued in the EMEA area. In North America, the machine investments of earlier years impacted sales of upgrade products, and modernisation of the machine stock will become due only after a few years.

Service and spare parts sales for heat treatment machines remained at a high level. In terms of numbers, there were more deals than the previous year, but the average size of single orders fell slightly. The strongest sales areas continued to be North America and the EMEA area.


Growth Drivers

Investors » Market Information » Growth Drivers


Competitors

Investors » Market Information » Competitors

The glass technology market is still fragmented and Glaston has many competitors. However, due to the challenging market situation, consolidation has accelerated in recent years.

In the Machines business area, Glaston is one of the world’s leading operators. In this business area, Glaston is able to offer its customers the widest product range and service offering on the market.

In the Services business area, Glaston’s customer service network is the sector’s most extensive both geographically and in terms of personnel. There are more than 20 service locations. In addition, the service range provided by the Services business is the most comprehensive in the sector. Glaston’s comprehensive Glaston Care service agreements distinguish Glaston from its competitors. Maintenance services are available for every stage of the life cycle of products.

Share and Shareholders


Share Tools

Investors » Share and Shareholders » Share Tools


Share Capital

Investors » Share and Shareholders » Share Capital

Glaston has one class of shares and each share that is not owned by the company entitles its holder to one vote at the Annual General Meeting and to an equal amount of dividend. The Glaston share does not hold nominal value. The company’s shares are registered in the book-entry system.

The table summarizes Glaston’s share capital and changes that have occurred since 2001.

Registration DateChange in the Number of Shares Change in Share Capital, EURNumber of Shares Share Capital, EUR
27 March 2013+88,119,700193,708,33612,696,000
6 May 2011+3,092,501105,588,63612,696,000
4 April 2011+4,615,367102,496,13712,696,000
4 March 2011+18,530,76897,880,76812,696,000
31 Dec. 201079,350,00012,696,000
31 Dec. 200979,350,00012,696,000
31 Dec. 200879,350,00012,696,000
31 Dec. 200779,350,00012,696,000
31 Dec. 200679,350,00012,696,000
31 Dec. 200579,350,00012,696,000
31 Dec. 200479,350,00012,696,000
25 Nov. 2004+ 39,675,000+ 6,348,00079,350,00012,696,000
31 Dec. 200339,675,0006,348,000
31 Dec. 200239,675,0006,348,000
31 Dec. 200139,675,0006,348,000

Authorisations

Investors » Share and shareholders » Authorisations

Glaston Corporation’s Annual General Meeting on 4 April 2017 authorised the Board of Directors to decide on the issuance of shares as well as the issuance of options and other rights granting entitlement to shares. The authorisation covers a maximum of 20,000,000 shares.

The authorisation does not exclude the Board of Directors’ right to decide on a directed issue. It was proposed that the authorisation be used for executing or financing arrangements important from the company’s point of view, such as business arrangements or investments, or for other such purposes determined by the Board of Directors in which a weighty financial reason would exist for issuing shares, options or other rights granting entitlement to shares and possibly directing a share issue.

The Board of Directors is authorised to resolve on all other terms and conditions of the issuance of shares, options and other rights entitling to shares as referred to in Chapter 10 of the Companies Act, including the payment period, grounds for the determination of the subscription price and the subscription price or allocation of shares, options or other rights without payment or that the subscription price may be paid besides in cash also with other assets either partially or entirely. The authorisation is valid until 30 June 2018 and it invalidates earlier authorisations.


Analysts

Investors » Share and shareholders » Analysts

According to our information the analysts listed below prepare investment analyses on Glaston. The analysts do so on their own initiative. Glaston takes no responsibility for the opinions expressed by analysts.

Inderes Oy
Juha Kinnunen
040 778 1368
juha.kinnunen[at]inderes.com

Pohjola Pankki Oyj 
Pekka Spolander
010 252 4351
pekka.spolander[at]pohjola.fi


Shareholders

Investors » Share and Shareholders » Shareholders

At the end of December 2016, the company held 788,582 of the company’s own shares (treasury shares), corresponding to 0.75 percent of the total number of issued shares and votes.

Acquisition and disposal of treasury shares

20162015 2014  2013 20122011
 Treasury shares 1 January, shares788,582 788,582 788,582 788,582 788,582 788,582
 Surrendered during the year, shares
 Treasury shares 31 December, shares788,582 788,582 788,582 788,582 788,582788,582

Shareholders of listed companies have an obligation to notify both the Financial Supervisory Authority (FSA) and the listed company of changes in their holdings. Listed companies have an obligation to publicly disclose the shareholder’s notification.

Under the provisions of the Securities Markets Act, changes in holdings must be disclosed when the holding reaches, exceeds or falls below 5, 10, 15, 20, 25, 30, 50 or 66.7 (2/3) per cent of the voting rights or the numbers of shares of the company.

Notifications of changes in holdings must be made without undue delay by fax to +358 10 500 6515 or by email to agneta.selroos[at]glaston.net.

Please find more information on the Financial Supervisory Authority’s web page.

Notifications

26 October 2015: Oy G.W. Sohlberg Ab’s holding of Glaston Corporation’s total number of shares and votes has risen above 15%. Stock exchange release

16 October 2015: The holding of Evli Pankki Oyj and its subsidiaries and companies it controls of Glaston Pankki Oyj owns 365,000 shares, i.e. 0.19%, and companies it controls own 9,586,960 shares, i.e. 4.95% (Evli Alexander Management Oy 788,582 shares, i.e. 0.41%, and Mutual Fund Evli Finnish Small Cap 8,798,378, i.e. 4.54%). Stock exchange release

31 March 2015: The holding of Jeppe Lahtinen and Hymy Lahtinen Oy, which is controlled by Jeppe Lahtinen, of Glaston Corporation’s total number of shares and voting rights has risen above 10%. Stock exchange release

10 March 2015: Hymy Lahtinen Oy’s holding of Glaston Corporation’s total number of shares and voting rights has risen above 10%. Stock exchange release

27 January 2015: Finnish Industry Investment Ltd’s holding of Glaston Corporation’s total number of shares and votes has fallen below 5%. Stock exchange release


Transactions of managers

Investors » Share and Shareholders » Transactions of managers

Notification of Managers’ and their closely associated persons’ transactions at Glaston Corporation as of July 3, 2016

Glaston Corporation Managers and their closely associated persons referred to in the Market Abuse Regulation ((EU) No 596/2014, ”MAR”) are requested to follow the below instructions for notifying transactions as of 3 July 2016:

Glaston Corporation recommends Managers and their closely associated persons to give their notification promptly to Glaston and the FIN-FSA and at the latest within three (3) business days after the transaction.

Instructions for filling the transaction notification form

1. Fill in the form

  • The form is available here
  • Details for the form
Glaston Corporation LEI code743700V3I7CLI3DJ8L62
Trading symbol of Glaston shareGLA1V
ISIN code of Glaston shareFI0009010219
Notification referenceWill generate automatically on the form

2. Send the form you have filled in as email attachment to Glaston and FIN-FSA as soon as possible.

  • Do not send the form by post due to short notification timetable three (3) working days.
  • Sending to the Financial Supervisory Authority:               
  • Sending to Glaston Corporation:
    • Send the form as an email attachment to trading(at)glaston.net
    • Please also add your phone number to the email message so that we can contact you if Glaston has questions about the notification.
    • In case of any problems, please contact agneta.selroos(at)glaston.net or taina.tirkkonen(at)glaston.net.

Glaston will publish the notification as a stock exchange release without delay after the notification has been received.

More information on the regulation of transactions made by the Managers and their closely associated persons is available on FSA web pages.

Governance

Glaston Corporation’s administration and management are based on the Company’s Articles of Association, the Finnish Companies Act and Securities Markets Act, and the rules of NASDAQ Helsinki Stock Exchange. In addition, Glaston complies with the Finnish Corporate Governance Code 2015 issued by the Finnish Securities Market Association. The Code is publicly available at the address www.cgfinland.fi. In addition, operations are guided by Glaston’s own operating principles and policies, and the company’s values.

The Corporate Governance Statement 2016 is presented as a separate report and was disclosed together with the annual report and the financial statements.


Board of Directors

Investors » Governance » Board of Directors

Independent of the company. Managing Director of Oy G.W.Sohlberg Ab, a significant shareholder of the company. Born 1963, M.Sc.(Econ.). Chairman of the Board since 2007.

Primary work experience
EQT, 1997–2006, Senior Partner; MacAndrew & Forbes International, 1992-1995, President; Amer Group, 1987-1991, Director, Business Development.

Key positions of trust
Detection Technology Oyj, Chairman of the Board; StaffPoint Holding Oy, Chairman of the Board
Wulff Group Plc, Chairman of the Board; Nissala Oy, Chairman of the Board; Toolmakers Oy, Chairman of the Board; Nordic Regional Airlines Oy, Member of the Board

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Independent of the company and significant shareholders. Born 1967, M.Sc.(Econ.), M.Sc. (Eng.). Head of Customer Operations, Strategy and Business Development, Networks, Nokia plc. Member of the Board of Glaston Corporation since 2006.

Primary working experience
Nokia plc, expert and management positions, since 1994.

Key positions of trust: –

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Independent of the company and significant shareholders. Born 1965, M.Sc. (Econ.).
Vice President, Group Treasury and Financial Services & Support at Wärtsilä Corporation. Member of the Board of Glaston Corporation since 2012.

Primary working experience
Wärtilä Corporation 2008-2010, Director, Financial Accounting; SRV Group 2006 – 2008:
Senior Vice President, Financial Administration, IFRS & IPO project manager; Quorum Group 2005 – 2006, Administration Director and Senior Partner; Pohjola Group 2001-2005:
Conventum Securities Ltd., Managing Director 2004 – 2005, Conventum Ltd. Administration Director 2001 – 2004  

Key positions of trust:
Fingrid Oyj, Member of the Board

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Independent of the company and significant shareholders. Born 1966, M.Sc. Architecture. CEO at SARC Architects Ltd. Member of the Board of Glaston Corporation since 2016.

Key positions of trust
Wood in culture Association, Member of the Board; Senate Properties, expert committee, deputy member of the Board; Member of the Jury in several national and international architectural competitions 1998-2016.

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Independent of the company and significant shareholders. Born 1960, M.Sc. (Eng.).
Valmet Technologies Oy, Vice President, Energy Sales and Services Operations, EMEA, 2015. Member of the Board of Glaston Corporation since 4 April 2017.

Primary working experience
Valmet Power Oy, Finland, 2014-2015, Vice President, Energy Sales and Services Operations, EMEA; Managing Director
Metso Power Oy, Finland, 2017-2014, Vice President, Capital Projects; Vice President, EMEA; Managing Director
Kvaerner Power Oy, Finland, 2003-2007, Vice President, Capital Projects; Managing Director
Kvaerner Pulping Oy, Finland, 1996-2003, Vice President, Recovery Boilers SBU, Vice President, Boilers SBU, Managing Director (2000-2003)

 

Key positions of trust

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Independent of the company and significant shareholders. Born 1954, M.Sc. (Econ.), APA.
Professional Board member. Member of the Board of Glaston Corporation since 2010, Deputy Chairman of the Board since 2014.

Primary working experience
Pöyry Plc 1985-2010: Senior Advisor, 2010; Group Executive Vice President and Deputy to President & CEO,1999-2009; Head of Infrastructure & Environment business group, 1998-2000; Head of Construction business group, 1997-1998; CFO, 1988-1999.

Key positions of trust
Havator Oy, Chairman of the Board; Cargotec Plc, Member of the Board; Evli Bank Plc, Member of the Board; Pöyry PLC, Vice Chairman of the Board; Holiday Club Resorts, Member of the Board; 3Step It Group Oy, Member of the Board

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Independent of the company and significant shareholders. Born 1957, M.Sc. (Mining). President and CEO at Finnair Plc. Member of the Board of Glaston Corporation since 2011.

Primary working experience
Cargotec Corporation 2007-2013: MacGregor, Chief Operating Officer (COO) 2012-2013 and Cargotec Corporation Chief Operating Officer and Deputy to CEO 2007-2012; Sandvik 1985-2007: President of the Underground Hard Rock Mining division of Sandvik Mining and Construction (SMC) and member of SMC management team, Sandvik Country Manager in Finland 2005-2007; President of TORO Loaders division of SMC 2003-2005; President of Drills division of SMC 2001-2003.

Key positions of trust
Boliden Group, Member of the Board; The Finnish Fair Corporation, Member of the Supervisory Board;
Ilmarien Mutual Pension Insurance Company, Member of the Board; Confederation of Finnish Industries, Member of the Board; Service Sector Employers Palta, Chairman of the Board.

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

The Annual General Meeting elects the members of the Board of Directors. The composition of the Board of Directors is included in the Notice to the Annual General Meeting. The personal information of the candidates is published on Glaston’s web site in connection with the notice to attend the Annual General Meeting.

According to the Articles of Association, the Board of Directors consists of minimum of five (5) and a maximum of nine (9) members. Members of the Board are elected for one year at a time, and the term of office of Members of the Board expires at the end of the next Annual General Meeting that follows their election.  According to the Articles of Association, a person who has reached 67 years of age cannot be elected a Member of the Board of Directors. In the selection of members, attention shall be paid to the fact that the Members’ experience and competence in the Company’s field of business and development stage are mutually complementary.

The Board of Directors elects from among its members a Chairman and a Deputy Chairman for one year at a time.

The Board of Directors’ tasks and responsibilities are determined primarily by the company’s Articles of Association, the Finnish Companies Act and other legislation and regulations. It is the responsibility of the Board of Directors to further the interests of the company and all of its shareholders.

The main duties and operating principles of the Board of Directors are defined in the board charter approved by the Board. It is the Board’s duty to prepare the matters to be dealt with by a General Meeting and to ensure that the decisions made by a General Meeting are appropriately implemented. It is also the Board’s task to ensure the appropriate arrangement of the control of the Company’s accounts and finances. In addition, the Board directs and supervises the Company’s executive management, appoints and dismisses the President & CEO and decides on the President & CEO’s employment and other benefits. In addition, the Chairman of the Board approves the salary and other benefits of the Executive Management Group. The Board approves the Executive Management Group’s charter.

The Board of Directors also decides on far-reaching and fundamentally important issues affecting the Group. Such issues are the Group’s strategy, approving the Group’s budget and action plans and monitoring their implementation, acquisitions and the Group’s operating structure, significant capital expenditures, internal control systems and risk management, key organisational issues and incentive schemes.

The Board of Directors is also responsible for monitoring the reporting process of the financial statements, the financial reporting process and the efficiency of the Company’s internal control, internal auditing, if applicable, and risk management systems pertaining to the financial reporting process, monitoring the statutory audit of the financial statements and consolidated financial statements, evaluating the independence of the statutory auditor or audit firm, particularly with respect to the provision services unrelated to the audit, and preparing a proposal for resolution on the election of the auditor.

The Board of Directors meets according to a timetable agreed in advance, generally 7–10 times per year. The Board of Directors may meet in addition to the aforementioned meetings, if necessary. The Board of Directors shall have a quorum if more than half of its members are present at the meeting. Matters shall be resolved by a simple majority of the votes cast. In the event of a tie, the Chairman shall have the casting vote.

The President & CEO, or another member of the company management designated by him, shall act as the presiding officer at Board meetings.


Executive Management Group

Investors » Governance » Executive Management Group

CEO & President of Glaston Corporation since 2009. Born 1956, M.Sc. (Mining Engineering and Mineral Processing).

Primary working experience
CPS Colour Group, 2005-2009, President and CEO; Consolis Oy, 2005, President and CEO;
Sandvik Oy, 1998-2005: Sandvik Tamrock Oy, 2003-2005, President;  Sandvik Mining and Construction:  2002-2003 President for U.S, and  Mexico and 1998-2002 President for Southern Europe and the Middle East

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

SVP, Machines as of July 2016. Deputy to the CEO since 2015.  Born 1974, M.Sc. (Econ.).  Joined the company in 2002.

Primary work experience
Glaston Corporation, CFO, 2012-2016; Glaston America Inc., 2010-2012, Vice President, Sales and Services; Glaston Corporation, Group Treasurer, 2007-2010; Tamglass Finton Oy, 2005-2007, Managing Director; Tamglass Lasinlajostus Oy, 2002-2005, Business Controller; Finnforest Oyj, 1998-2002, Financial Management Positions.

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

General Counsel and Senior Vice President, Human Resources. Born 1975, Master of Laws (LL.M.), Master of Administrative Sciences (M. Sc. Admin.). Joined the company in 2011.

Primary working experience
Metso Minerals Oy, 2008-2011, Legal Counsel; Cargotec Corporation, 2006-2008, Legal Counsel.

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Senior Vice President, Emerging Technologies as of 2 January 2017. Born 1958, B.Sc. (Eng.). Joined the company in 1986.

Primary working experience
Glaston Corporation: 2016-2017, SVP, Americas, 2013-2016, SVP, Machines business operations; 2012-2013, SVP, Heat Treatment product line; 2009-2012, SVP, Services,; 2008-2009 SVP, Quality and Business development; Kyro Corporation, 2003-2007, Vice President, Technology;  Tamglass Engineering Ltd. Oy,1999-2003, Managing Director; Tamglass Ltd. Oy, 1991-2003, management positions; Tamglass Engineering Oy: 1989-1991, Vice President, Service and  1986-1989, Project Engineer; Insinööritoimisto Kupari Oy, 1984-1986, Design and Project Engineer.

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Senior Vice President Asia. Born 1968, EMBA. B.Sc. (Power Machinery Engineering). Joined the company in 2008.

Primary working experience
GE Motors & Controls, 2005-2008, General Manager, Asia; GE Lighting Systems, 2005-2008, Product Line Director; GE Motors & Fixtures: 1999-2002, Marketing Development Manager,  1997-1999, Sales Manager,
Asia and 1994-1997 Market Developer.

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Senior Vice President, EMEA. Born 1955, M.Sc. (Mining Engineering and Mineral Processing). Joined the company in 2010.

Primary working experience
Sandvik Mining and Construction, 2004-2009, General Manager, sub-Region Med, Sandvik Italia S.p.A.;
Sandvik Tamrock, 2000-2004, Business Line Manager, Tools for Sandvik Espanola SA.; Drilltech Mission LLC, USA, 1999, Sales and Marketing Manager; Tamrock Corporation: 1992-1995 Surface Division,  Sales and Marketing Manager,  1995-1998 Vice President, Product support, Product Companies and 1998, General and Plant Manager, Tampere, Finland; Oy Tampella Ab 1982-1992.

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

Senior Vice President, Services. Born 1969, M.Sc., Mech Eng. Joined the company in 2016.

Primary work experience

Valmet, 2015-2016, Director, Roll Maintenance; Valmet / Metso Paper, 2011-2015, Director, Roll Operations; Metso Paper:  2008-2011, General Manager, Production Development, Service and , in 2006-2007, VP, Spare Parts, Asia-Pacific, in  2002-2005, Global Technology Manager, Process Parts and in  1998-2002 Production Manager, Winders.

Ownership of Glaston shares
Link to Glaston’s Insider register, where you will find up-to-date information on ownership.

CFO as of 19 September 2016. Born 1970, M.Sc. (Econ.) and MBA.

Primary work experience

Basware Oyj, 2014-2016, Vice President, Business Control; Outokumpu Oyj: Divisional CFO (SVP Finance & Control), Stainless Coil EMEA 2012-2013, Senior Vice President, Communications and Investor Relations 2007-2011; Tieto Corporation, 1997-2007, Leadership positions in Communications and IR, specialist roles in finance.

Chief Executive Officer

The Board of Directors of Glaston Corporation appoints the company’s Chief Executive Officer (CEO), whose key terms and conditions of employment are specified in a written contract approved by the Board. The CEO is responsible for the operational management of Glaston Group in accordance with the Finnish Companies Act and instructions given by the Board. The CEO reports to the Board on, among other things, the company’s financial position, the business environment as well as changes therein, and on other matters of significance. The CEO prepares the matters to be handled by the Board and implements the decisions made on them. The CEO is the Chairman of Glaston’s Executive Management Group and steers the business of the company and its business areas and units.

Executive Management Group

The Executive Management Group includes the CEO, the Chief Financial Officer, the Senior Vice President, Human Resources and General Counsel, the Senior Vice Presidents (SVP) of the Machines and of the Services business areas as well as the Senior Vice Presidents for regions EMEA and Asia as well as the Senior Vice President, Emerging Technologies.


Remuneration

Investors » Governance » Remuneration

The Annual General Meeting decides on the remuneration of the Board members based on the recommendation of the Shareholders’ Nomination Board.
The remuneration of the Board of Directors consists of an annual fee and meeting fee. The meeting fee is paid for every meeting attended.
In accordance with a decision of the Annual General Meeting held on 4 April 2017, the annual remuneration of the Chairman of Glaston’s Board of Directors is EUR 40,000, the remuneration of the Deputy Chairman EUR 30,000 and the remuneration of Members of the Board EUR 20,000. The meeting remuneration is EUR 800 for the Chairman and EUR 500 for a Member of the Board. The Board members are covered by a voluntary pension insurance accrued from board membership fees. The value of the pension insurance corresponds to the Finnish TyEL pension. Travel expenses for the Board members are reimbursed in accordance with the company’s travel policy.
The Board members do not receive shares or share derivatives as remuneration for their membership nor do they participate in Glaston’s incentive programs.

In 2016, remuneration to the Board of Directors totalled EUR 197,400.

EuroRemuneration 2016Remuneration 2015
Andreas Tallberg, Chairman47 30046 700
Teuvo Salminen, Deputy Chairman34 60034 300
Claus von Bonsdorff24 60024 300
Anu Hämäläinen24 60024 300
Pekka Vauramo24 60024 300
Kalle Reponen24 60024 300
Sarlotta Narjus *)18 100-
Total197 400178 200

*) Member of the Board as of 5 April 2016

The Board of Directors decides on the compensation and benefits of the CEO. The Chairman of the Board of Director’s approves the salary and other benefits of the Executive Management Group.

The remuneration of the President & CEO and the Members of the Executive Management Group consists of a fixed monthly salary, an annual bonus and a share-based incentive plan based on the development of the share price, which is intended as a long-term reward. The annual bonus is determined on the basis of Glaston’s financial performance. The criteria for bonus payments are consolidated result, result of the business area or business unit as well as functional targets. The maximum amount of the President & CEO’s annual bonus is 50% of annual salary. For the other members of the Executive Management Group, the maximum amount of annual bonus is 40% of annual salary.

The President & CEO’s period of notice is three months. In addition, the President & CEO is paid compensation corresponding to 12 months’ salary if he is dismissed by the Company. If more than 50% of the Company’s shares are transferred to a new owner in connection with a merger or acquisition, the President & CEO shall have the right to terminate his employment contract with 1 month’s notice, in which case he shall be paid one-off severance pay of EUR 200,000.

The President & CEO has the opportunity to retire at 63 years of age. The President & CEO and two other members of the Executive Management Group are entitled to a supplementary pension that exceeds the statutory scheme. The retirement age of other members of the Executive Management Group is in accordance with normal local legislation.

Glaston’s share-based incentive plans are directed to the Group’s key personnel as part of the Group’s incentive schemes. The plans aim to align the interests of the company’s shareholders and key personnel in the Group in order to raise the value of Glaston.

Long-term incentive plan 2014-2016
On 21 January 2014, Glaston’s Board of Directors approved a new long-term incentive and commitment plan for the Group’s key personnel including senior management of the Group and its subsidiaries.

The incentive plan is based on the development of Glaston’s share price.

The plan launched in 2014 covered the years 2014–2016. No rewards from the plan were paid.  The plan covered 30 key Glaston personnel.

Long-term incentive plan 2015-2017
On 27 January 2015, Glaston’s Board of Directors approved a new period for the long-term incentive and commitment plan for the Group’s key personnel including senior management of the Group and its subsidiaries. The incentive plan is based on the development of Glaston’s share price.

The plan covers the years 2015–2017 and the possible rewards will be paid in spring 2018. The incentive plan launched in 2015 covers 31 key Glaston personnel.

Long-term incentive plan 2016-2018
On 19 January 2016, Glaston’s Board of Directors decided on a new period in the share-based incentive plan for the Group’s key personnel that began in 2014. The incentive plan is part of the long-term incentive and commitment plan for the senior management of the Group and its subsidiaries, and it is linked to the development of Glaston’s share price.

The new period covers 2016–2018, and any rewards from the scheme will be paid in spring 2019. The incentive plan launched in 2016 covers 18 key Glaston personnel.

The table presents the total remuneration of the President & CEO and the other Members of the EMG in 2016 and 2015.

EUR20162015
President & CEO Arto Metsänen
Paid salary391,184510,303
Bonuses paid15,00020,000
Share bonus--
Total salary406,184530,303
Fringe benefits1,252-
Total407, 436530,303
Statutory pension contributions (TyEL or similar scheme)71, 42472,983
Voluntary pension contributions54,47563,671
Other Executive Management Group, total
Paid salaries1,155,1281,092,208
Severance pay--
Performance bonuses80,05954,000
Share bonus--
Total salaries1.235,1871,146,208
Fringe benefits30,96978,348
Total1,266,1561,224,556
Statutory pension contributions (TyEL or similar scheme)170,501158,967
Voluntary pension contributions20,16046, 097

Risk Management and Internal Control

Investors » Governance » Risk Management

Risk management and internal control are part of Glaston’s management system. Risk management is an essential part of planning, decision-making and management processes, and it is being applied in all of Glaston’s operations worldwide. The objective of risk management is to ensure the achievement of business targets and to safeguard operational continuity.

The purpose of internal control on the other hand is to ensure the effective and profitable operations of the company, sufficient and appropriate management of business risks, and reliable information.

The control system is also used to monitor compliance with specified operating principles and issued instructions.

Glaston’s risk management process is introduced in the Corporate Governance Statement. The Group’s risks are covered in more detail in the Board of Directors’ Report. The management and organisation of the Group’s financial risks are presented in more detail in Note 3 of the consolidated financial statements.

Risk management is an essential part of planning, decision-making and management processes, and a risk management programme is applied in all of Glaston’s operations worldwide. The objective of risk management is to ensure the achievement of business targets and to safeguard operational continuity. Glaston applies a risk management policy approved by the company’s Board of Directors.

The principle guiding Glaston’s risk management is the continuous, systematic and appropriate development and implementation of the risk management process, with the aim of the comprehensive recognition and appropriate management of risks.

From the perspective of risk management, Glaston has divided risks into four different groups: strategic risks, operational risks, financial risks and hazard risks. Risks of property, business interruption and liability losses arising from the Group’s operations have been covered by appropriate insurance, and management of financial risks is the responsibility of the Group Treasury in the Group’s parent company.

Glaston’s risk management consists of the following stages: risk recognition, risk assessment, risk handling, risk reporting and communication, monitoring of risk management measures and processes, operational continuity planning and crisis management.

As part of the risk management process, the most significant risks and their possible effects are reported to company management and the Board of Directors regularly, based on which management and the Board can make decisions on the level of risk that the business areas and units are possibly ready to accept in each situation or at a certain time.

In practice, risk management consists of appropriately specified tasks, operating practices and tools, which have been adapted to Glaston’s business area, business unit and Group-level management systems. Risk management is the responsibility of the directors and managers of each business area, business unit and Group function. Risk recognition is in practice the responsibility of every Glaston employee.

A strategic risk for Glaston is above all the loss of the Group’s market shares as well as the arrival of a competing machine and glass processing technology on to the market in connection with technological development, which would require Glaston to make considerable product development investments. Changes to legislation that regulate the company are also strategic risks.

Glaston’s most significant operational risks include management of large customer projects, the availability and price development of components, management of the subcontractor network, succeeding in the effective protection of intellectual property rights and efficient production as well as the availability and permanence of personnel.

The Group’s financial risks consist of foreign exchange, interest rate, credit loss, counterparty and liquidity risks. The nature of international business means that the Group has risks arising from fluctuations in foreign exchange rates. Changes in interest rates represent an interest rate risk. Credit loss and counterparty risks arise mainly from risks associated with the payment period granted to customers. Liquidity risk is the risk that the Group’s negotiated credit facilities are insufficient to cover the financial needs of the business or that obtaining new funding for these needs will cause a significant increase in financing costs.

The aim of internal control is to ensure that the Group’s operations are efficient, productive and reliable and that legislation and other regulations are complied with. The Group has specified for the main areas of its operations Group-wide principles that form the basis for internal control.

The Group’s internal control systems serve to provide reasonable assurance that the financial reports published by the Group give reasonably correct information about the Group’s financial position. The Board of Directors and the President & CEO are responsible for arranging internal control.

The Group’s internal control is decentralised to different Group functions, which supervise within their areas of responsibility compliance with the policies approved by the Board of Directors. The Group’s financial management and operational control are supported and coordinated by the Group’s financial management and controller network.

The Company has no separate internal auditing organisation. The Group’s Financial Management organisation regularly monitors the reporting of segments and addresses deviations perceived in reporting and, if necessary, performs either its own separate internal auditing or commissions the internal auditing from external experts.


Articles of Association

Investors » Governance » Articles of Association


Auditing

Investors » Governance » Auditing

Under the Articles of Association the company has one auditor, which must be an auditing firm approved by the Finnish Central Chamber of Commerce. The Annual General Meeting elects the Company’s auditor. The auditor’s term of office covers the financial year during which it is elected and ends at the conclusion of the Annual General Meeting that follows its election. The auditor gives to the company’s shareholders the auditor’s report required by law in connection with the annual financial statements. In addition, the auditor reports regularly to the Board of Directors.

Accounting firm Ernst & Young Oy has been acting as the Company’s auditor since 2010.

On 5 April 2016, Ernst & Young Oy designated Authorized Public Accountant Kristina Sandin as the Responsible Auditor. Auditing units representing Ernst & Young have mainly served as the auditors of the Company’s subsidiaries in each country.

In 2016 the Group’s auditing costs totalled approximately EUR 284,000 (EUR 322,000 in 2015), of which Ernst & Young received approximately EUR 265,000 (EUR 296,000 in 2015). Ernst & Young Oy’s auditing expenses for the audit for financial year 2016 totalled approximately EUR 233,000 (EUR 239,000 in 2015).


Annual General Meeting

Investors » Governance » Annual General Meeting

Glaston Corporation’s General Meeting of Shareholders is the company’s ultimate decision-making body. It decides on the duties for which it is responsible in accordance with the Finnish Companies Act and the Articles of Association, which include the adoption of the financial statements and the consolidated financial statements contained therein, the distribution of profits, and the discharge of the Members of the Board of Directors and the President & CEO from liability. In addition, the General Meeting of Shareholders elects the Board of Directors and the Auditors. The Annual General Meeting decides on the remuneration paid to Members of the Board and the Auditors.

Glaston Corporation’s General Meeting of Shareholders meets at least once per year. The Annual General Meeting must be held at the latest by the end of May. An Extraordinary Meeting of Shareholders is convened when the Board of Directors considers it necessary or when one must be convened by law.

In accordance with the Articles of Association, the notice to attend a General Meeting of Shareholders must be published on the Company’s website no earlier than two months before the last day of registration and no later than three weeks before the General Meeting, but at least nine days before the record date of the General Meeting. The Board of Directors may also decide to publish the notice of the General Meeting in one or more Finnish or Swedish-language national newspapers. In addition, Glaston publishes the notice to the General Meeting of Shareholders as a stock exchange release.

The President & CEO, the Chairman of the Board and the Members of the Board of Directors shall attend the General Meeting of Shareholders. In addition, the Auditor shall be present at the Annual General Meeting. The candidates for the Board of Directors shall also be present at the General Meeting that decides upon their election.

In accordance with the Finnish Companies Act, a shareholder shall have the right to have a matter falling within the competence of the General Meeting dealt with by the General Meeting, if the shareholder so requests in writing from the Board of Directors well in advance of the meeting, so that the matter can be mentioned in the notice to attend. Glaston shall publish on its website in good time the date by which a shareholder must notify the Board of Directors of his/her request. At a General Meeting, shareholders shall have the right to make proposals and ask questions on the matters on the agenda of the meeting.

A shareholder shall have the right to participate in a General Meeting if the shareholder is registered in the Company’s register of shareholders eight (8) days before a General Meeting. Owners of nominee-registered shares may be temporarily registered in the Company’s list of shareholders for participation in a General Meeting. A shareholder may attend a General Meeting personally or through an authorised representative. A shareholder may also have an assistant at a General Meeting.

RESOLUTIONS OF THE ANNUAL GENERAL MEETING OF GLASTON CORPORATION

The Annual General Meeting of Glaston Corporation was held on 4 April 2017 in Helsinki. The General Meeting adopted the financial statements and consolidated financial statements for the financial period from 1 January to 31 December 2016. In accordance with the proposal of the Board of Directors, the General Meeting resolved that no dividend be distributed for the year 2016.

The General Meeting discharged the members of the Board of Directors and the President and CEO from liability concerning the financial year from 1 January to 31 December 2016.

The number of the members of the Board of Directors was resolved to be seven. The General Meeting decided to re-elect all current members of the Board of Directors, Mr. Andreas Tallberg, Mr. Teuvo Salminen, Mr. Claus von Bonsdorff, Ms. Anu Hämäläinen, Ms. Sarlotta Narjus and Mr. Pekka Vauramo, as members of the Board of Directors for the following term ending at the closing of the next Annual General Meeting.  In addition, it was resolved  that M.Sc.(Eng) Kai Mäenpää  be elected as new member of the Board of Directors for the same term.

In its organization meeting held after the General Meeting, the Board of Directors elected Andreas Tallberg as Chairman of the Board and Teuvo Salminen as Vice Chairman of the Board.

The General Meeting resolved that the yearly remuneration payable to the members of the Board of Directors remain as follows: 40,000 euro for the Chairman of the Board and 30,000 euro for the Vice Chairman of the Board and the remuneration payable to other members of the Board of Directors shall remain at 20,000 euro.

The General Meeting elected accounting firm Ernst & Young Oy as the company’s auditor with Authorised Public Accountant Kristina Sandin as the main responsible auditor.

The General Meeting authorised the Board of Directors to decide on the issuance of shares as well as the issuance of options and other rights entitling to shares. The authorisation consists of up to 20,000,000 shares in the aggregate.

The authorisation does not exclude the Board of Directors’ right to decide on a directed issue. The authorisation was proposed to be used for material arrangements from the company’s point of view, such as financing or implementing business arrangements or investments or for other such purposes determined by the Board of Directors in which case a weighty financial reason for issuing shares, options or other rights and possibly directing a share issue would exist.

The Board of Directors is authorised to resolve on all other terms and conditions of the issuance of shares, options and other rights entitling to shares as referred to in Chapter 10 of the Companies Act, including the payment period, grounds for the determination of the subscription price and subscription price or allocation of shares, option or other rights free of charge or that the subscription price may be paid besides in cash also by other assets either partially or entirely. The authorisation is effective until 30 June 2018. The authorisation supersedes earlier authorisations.

AGM minutes


Nomination Board

Investors » Governance » Nomination Board

The purpose and task of the Nomination Board is to annually prepare and present to the Annual General Meeting and, if necessary, to an Extraordinary General Meeting, a proposal on the number of the members of the Board of Directors, a proposal on the members of the Board of Directors and a proposal on the remuneration of the members of the Board of Directors. In addition, the task of the Nomination Board is to seek candidates as potential board members.

The Nomination Board acts in accordance with applicable laws, the stock exchange regulations applicable to the Company and the Finnish Corporate Governance Code. As a board representing the Company’s shareholders, the Nomination Board meets the requirements set out for such a board by the Corporate Governance Code.

The Nomination Board consists of four members, all of which are appointed by the Company’s four largest shareholders, who shall appoint one member each. The Chairman of the Company’s Board of Directors serves as an advisory member of the Nomination Board.

The Company’s largest shareholders entitled to appoint members to the Nomination Board shall be determined on the basis of the registered holdings in the Company’s shareholder register held by Euroclear Finland Ltd as of the first working day in September in the year concerned.

The Nomination Board is established to exist and serve until the General Meeting of the Company decides otherwise. The members shall be nominated annually and their term of office shall end when new members are nominated to replace them.

The members of the Nomination Board appointed by shareholders shall be independent of the Company and a person belonging to the Company’s operative management cannot be a member of the Nomination Board.

The members of the Nomination Board shall not be entitled to any remuneration from the Company on the basis of their membership. The travelling costs of the members shall be reimbursed in accordance with the Company’s travel policy. The Nomination Board can, at the Company’s approved expense, make use of outside experts to identify and evaluate potential new candidate members to the Board of Directors.

The Nomination Board shall forward its proposals for the Annual General Meeting to the Company’s Board of Directors by the end of January each year. Proposals intended for an Extraordinary General Meeting shall be forwarded to the Company’s Board of Directors in time for them to be included in the notice to the General Meeting. The Nomination Board’s decision shall be the majority opinion. In case of a tie, the Chairperson will have the casting vote.

A person to be proposed as a member of the Board of Directors shall have the qualifications required for the task and the possibility to devote sufficient amount of time for the task.

Based on the ownership on 1 September, 2016 the following have been selected as members of Glaston’s Nomination Board:
Ari Saarenmaa (Oy G.W.Sohlberg Ab)
Stefan Björkman (Etera Mutual Pension Insurance Company)
Markku Seppälä (Hymy Lahtinen Oy)
Mikko Koivusalo (Varma Mutual Pension Insurance Company)

Andreas Tallberg, Chairman of the Company’s Board of Directors, serves as an advisory member of the Nomination Board.

In its organizing meeting on 2 November 2016, the Nomination Board elected Ari Saarenmaa amongst its members as Chairman.

Financial Information


Key Figures

Investors » Financial Information » Key Figures


Geographical Net Sales

Investors » Financial Information » Geographical Net Sales

Net sales split in 2016


Financial Targets

Investors » Financial Information » Financial Targets

As part of the new strategic priorities, Glaston’s Board of Directors approved in March 2016 the financial targets for the period 2016-2018.

Glaston expects the glass machine market to grow at around 3-5% per year up to 2018.
Glaston’s financial objectives for the period 2016–2018 are:
– Annual growth of net sales exceeding market growth (CAGR)
– Comparable operating profit 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


Guidance

Investors » Financial Information » Guidance

Outlook

As in Glaston’s Interim Report, published on 26 April 2017:

In the first quarter of 2017, the glass processing market was quiet, as anticipated. The prolonged uncertainty in the global economy and increasing political tensions in some regions will impact customers’ willingness to invest, and decision-making times have lengthened. There are no visible signs of a permanent change in the market, however. We expect that positive market development will still continue.

A higher order book than the previous year, positive market development and the cost-saving measures undertaken create good conditions for the development of operations in 2017. We expect the full-year comparable operating result to improve from 2016. (In 2016 the comparable operating result was EUR 2.8 million.)

Previous Outlooks

As in Glaston’s Financial Statements Bulletin, published on 10 February 2017:

The development of the glass processing market was positive at the end of 2016. There are currently no signs of a weakening of the market, and positive development is expected to continue. Despite good demand, customers are often taking longer to make their investment decisions due to the uncertain global economy and political developments.

A higher order book than the previous year, positive market development and the cost-saving measures undertaken create good conditions for the development of operations in 2017. For the first quarter, a relatively small number of deliveries are scheduled, as a result of which the comparable operating result for the period is expected to be lower than the corresponding period a year earlier.

Glaston expects the full-year comparable operating result to improve from 2016. (In 2016 the comparable operating result was EUR 2.8 million.)

As in Glaston’s Financial Statement Bulletin 2015, published on 11 February 2016: OUTLOOK

In the final quarter of 2015, signs of caution appeared in Glaston markets. Looking at 2016, we expect the overall market to develop positively but cautiously.

We expect the North American market to continue to develop well also in 2016. We expect the EMEA area to develop positively. In Asia, we expect the Chinese market to remain stable at its current level, and we expect growth in the Pacific area.

The heat treatment machines market will continue to be reasonably subdued. We expect that demand for new heat treatment machines will be weaker than the previous year during the early part of the year. Despite a challenging market outlook, Glaston’s position in the market is good. Our wide product range corresponds excellently with customers’ needs. As the technology leader, we will continue our goal-oriented development work, in which digitalisation and new technologies will present new business opportunities.

The outlook for the services market is cautiously positive. Our growth objectives are supported by Glaston’s strong market position, comprehensive service network and up-to-date product range.

Due to the subdued market situation and reduced order book, we expect 2016 net sales to be slightly below the 2015 level. We expect the operating profit, excluding non-recurring items, to be at the 2015 level. (In 2015 net sales were EUR 123.4 million and operating profit, excluding non-recurring items, was EUR 6.1 million).

As in Glaston’s Interim report Q3/2015, published on 26 October 2015: Outlook unchanged

We continue to expect that Glaston’s markets will grow moderately in 2015. In sales of new machines, we expect good development to continue in the EMEA area and in North America. Economic uncertainty in the EMEA area as well as its local political tensions might, however, reduce customers’ willingness to invest.

The very subdued Asian market showed signs of recovery in July-September and we expect the favourable development to continue in the latter part of the year. We expect demand in the South American market to remain subdued in the fourth quarter. In the services market, we expect growth to continue in all product groups and particularly in upgrades.

Glaston expects that Continuing Operations’ 2015 net sales and comparable operating profit, excluding non-recurring items, will exceed the level of 2014 (in 2014 net sales were EUR 109.7 million and comparable operating profit, excluding non-recurring items, was EUR 5.5 million).

As in Glaston’s Interim report Q2/2015, published on 6 August 2015: OUTLOOK

We expect Glaston’s markets to grow moderately in 2015. In sales of new machines, we expect good development to continue in the EMEA area and in North America. We expect the South American and Asian markets to remain at their present level in the short term. In the services market, we expect the good development to continue during the latter part of the year and particularly so with respect to upgrades.

At the heart of Glaston’s strategy is profitable growth. Glaston’s expertise is strongest in heat treatment technology and service business, on which we can now fully focus our resources. We consider growth conditions to be good in these product groups.

Glaston revises its business outlook for 2015. Glaston expects that Continuing Operations’ 2015 net sales and comparable operating profit, excluding non-recurring items, will exceed the level of 2014 (in 2014 net sales were EUR 109.7 million and comparable operating profit, excluding non-recurring items, was EUR 5.5 million).

Previous outlook: Glaston expects that 2015 net sales and operating profit, excluding non-recurring items, will exceed the level of 2014 (in 2014, net sales were EUR 124.5 million and operating profit, excluding non-recurring items, was EUR 4.9 million).


Dividend

Investors » Financial Information » Dividend

2016201520142013201220112010200920082007
Dividend per share-0.01*)0.02*)0.01----0.050.10
Extra dividend per share---------
Total dividend-0.01*)0.02*)0.01----0.050.10

*) return of capital

Dividend policy

According to Glaston’s dividend policy Glaston’s objective is to distribute annually a dividend or return of capital amounting to 30-50% of the company’s comparable earnings per share.

When determining the amounts and dates of payment of any future dividends or returns of capital the Board of Directors always takes the company’s financial position and future outlook into consideration. In addition, the dividend policy takes into account growth targets in line with strategy as well as financing requirements for growth.


Accounting Principles

Investors » Financial Information » Accounting Principles

Glaston Corporation is a public limited liability company organized under the laws of the Republic of Finland and domiciled in Helsinki, Finland. Glaston’s shares are publicly traded in the NASDAQ Helsinki Ltd. Small Cap in Helsinki, Finland. Glaston Corporation is the parent of Glaston Group and its registered office is at Lönnrotinkatu 11, 00120 Helsinki, Finland.

Glaston Group is an international glass technology company. Glaston is a one of the leading manufacturers of glass processing machines globally. Its product range and service network are the most extensive in the industry. The operations of the Glaston Group are organized in two reportable segments, which are Machines and Services. Supporting activities include head office operations.

The Board of Directors of Glaston Corporation has in its meeting on 10 February, 2017, approved these financial statements to be published. According to the Finnish Companies’ Act, the shareholders have a possibility to approve or reject or make a decision on altering the financial statements in a General Meeting to be held after the publication of the financial statements.

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The consolidated financial statements of Glaston Group are prepared in accordance with International Financial Reporting Standards (IFRS), including International Accounting Standards (IAS) and Interpretations issued by the International Financial Reporting Interpretations Committee (SIC and IFRIC). International Financial Reporting Standards are standards and their interpretations adopted in accordance with the procedure laid down in regulation (EC) No 1606/2002 of the European Parliament and of the Council. The Notes to the Financial Statements are also in accordance with the Finnish Accounting Act and Ordinance and the Finnish Companies’ Act.

The consolidated financial statements include the financial statements of Glaston Corporation and its subsidiaries. The functional and reporting currency of the parent is euro, which is also the reporting currency of the consolidated financial statements. Functional currencies of subsidiaries are determined by the primary economic environment in which they operate.

The financial year of Glaston Group as well as of the parent and subsidiaries is the calendar year ending 31 December.

The financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below.

The figures in Glaston’s consolidated financial statements are mainly presented in EUR thousands. Due to rounding differences the figures presented in tables do not necessarily add up to the totals of the tables.

Glaston has applied the following new or revised or amended standards and interpretations from 1 January, 2015:

Annual improvement to IFRSs 2010-2012 and 2011-2013 Cycles

Annual improvements 2012
IFRS 2 Share based payments
IFRS 3 Business combinations
IFRS 8 Operating segments
IFRS 13 Fair value
IAS 16 Property plant and equipment
IAS 24 Related party disclosures
IAS 38 Intangible assets

Annual improvements 2013
IFRS1 First time adoptions of IFRS
IFRS 3 Business combinations
IFRS 13 Fair value measurement
IAS 40 Investment property

The amendments do not have a material impact on the consolidated financial statements of Glaston.

Other new or amended standards or interpretations applicable from 1 January, 2015 are not material for Glaston Group.

The consolidated financial statements include the parent and its subsidiaries. Subsidiaries are companies in which the parent has, based on its holding, more than half of the voting rights directly or via its subsidiaries or over which it otherwise has control. Divested subsidiaries are included in the consolidated financial statements until the control is lost, and companies acquired during the reporting period are included from the date when the control has been transferred to Glaston. Acquisitions of subsidiaries are accounted for under the purchase method.

Associates, where the Group has a significant influence (holding normally 20 – 50 percent), are accounted for using the equity method. The Group’s share of the associates’ net results for the financial year is recognized as a separate item in profit or loss. The Group’s interest in an associate is carried in the statement of financial position at an amount that reflects its share of the net assets of the associate together with goodwill on acquisition, if such goodwill exists. When the Group’s share of losses exceeds the carrying amount of associate, the carrying amount is reduced to nil and recognition of further losses ceases unless the Group is committed to satisfy obligations of the associate by guarantees or otherwise.

Other shares, i.e. shares in companies in which Glaston owns less than 20 percent of voting rights, are classified as available-for-sale financial assets and presented in the statement of financial position at fair value, or if the fair value cannot be measured reliably, at acquisition cost, and dividends received from them are recognized in profit or loss.

All inter-company transactions are eliminated as part of the consolidation process. Unrealized gains arising from transactions with associates are eliminated to the extent of the Group’s interest in the entity. Unrealized losses are eliminated in the similar way as unrealized gains, but only to the extent that there is no evidence of impairment.

Non-controlling interests are presented separately in arriving at the net profit or loss attributable to owners of the parent. They are also shown separately within equity. If the Group has a contractual obligation to redeem the share of the non-controlling interest with cash or cash equivalents, non-controlling interest is classified as a financial liability. 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. Total comprehensive income is attributed also to non-controlling interest even if this will result in the non-controlling interest having a deficit balance.

Foreign Subsidiaries

In the consolidated financial statements, the income statements, statements of comprehensive income and statements of cash flows of foreign subsidiaries have been translated into euros using the average exchange rates of the reporting period and the statements of financial positions have been translated using the closing exchange rates at the end of the reporting period.

The exchange difference arising from translating the income statements, statements of comprehensive income and statements of financial position using the different exchange rates is recognized as other comprehensive income and included in equity as cumulative exchange difference. Exchange differences arising from the translation of the net investments in foreign subsidiaries and associates in non-euro-area are also recognized in other comprehensive income and included in equity as cumulative exchange difference.

On the disposal of all or part of a foreign subsidiary or an associate, the cumulative amount or proportionate share of the exchange difference is reclassified from equity to profit or loss as a reclassification item in the same period in which the gain or loss on disposal is recognized.

Transactions in Foreign Currency

In their own day-to-day accounting the Group companies translate transactions in foreign currencies into their own reporting or functional currency at the exchange rates prevailing on the dates of the transactions. At the end of the reporting period, the unsettled balances of foreign currency transactions are measured at the exchange rates prevailing at the end of the reporting period. Foreign exchange gains and losses arising from trade receivables are entered as adjustments of net sales and foreign exchange gains and losses related to trade payables are recorded as adjustments of purchases. Foreign exchange gains and losses arising from financial items are recorded as financial income and expenses.

Financial assets and liabilities of Glaston have been classified as financial assets and liabilities at fair value through profit or loss, loans and receivables, available-for-sale financial assets and financial liabilities measured at amortized cost.

A financial asset is derecognized from the statement of financial position when Glaston’s contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to an external party and the transfer fulfills the asset derecognition criteria of IAS 39.

A financial liability or a part of a financial liability is removed from the statement of financial position when the liability is extinguished, i.e. when the obligation specified in the contract is discharged or cancelled or expired.

Derivative Financial Instruments at Fair Value through Profit or Loss and Hedge Accounting

Derivatives, which do not meet hedge accounting criteria, are financial assets and liabilities at fair value through profit or loss, and changes in the fair values of these derivative instruments are recognized immediately in profit or loss.

Derivatives are recorded in the statement of financial position at their fair values. Fair values of publicly traded derivatives are calculated based on quoted market rates at the end of the reporting period. All Glaston’s derivatives are publicly traded. Fair values of forward contracts are determined using forward exchange market rates at the end of the reporting period. At the end of the reporting periods 2015 and 2014, Glaston had electricity forward contracts.

The Group’s derivative transactions, while providing economic hedges, do not qualify for hedge accounting under IAS 39, and therefore changes in the fair values of these derivative instruments have been recognized immediately in profit or loss. Group companies can hedge with currency derivatives their sales in foreign currency as well as those orders received, for which there are firm commitments. The hedging instruments used can be forward contracts mainly made with Group Treasury or directly with banks. These hedges are recognized in profit or loss as adjustment of net sales. In addition, the Group hedges its electricity purchases with electricity derivatives. The fair value changes of these derivative instruments are recognized immediately in profit or loss as an adjustment of expenses.

If the hedge accounting criteria are fulfilled, derivatives are reported as cash flow hedges in accordance with IAS 39 hedge accounting principles. Hedge accounting was not applied during the reporting periods 2015 and 2014.

Changes in the fair value of foreign currency derivatives designated as hedges of net investment in foreign entities, and which are effective hedges, are recognized in other comprehensive income net of tax, and included in the equity in cumulative exchange difference. Ineffective part of the hedge is recognized immediately in profit or loss. Glaston had no net investment hedges in foreign entities in 2015 or 2014.

Derivative instruments are included in current assets or liabilities in the statement of financial position. Trade date accounting is used in recognizing purchases and sales of derivative instruments.

Other Assets and Liabilities at Fair Value through Profit or Loss

Other assets and liabilities at fair value through profit or loss can include mainly Glaston’s current investments, which are classified as held for trading, i.e. which have been acquired or incurred principally for the purpose of selling them in the near future. Other assets and liabilities at fair value through profit or loss are included in current assets or liabilities in the statement of financial position.

Fair values of other financial assets and liabilities at fair value through profit or loss are estimated to approximate their carrying amounts because of their short maturities. Trade date accounting is used in recognizing purchases and sales of other assets and liabilities at fair value through profit or loss.

Loans and Receivables

Loans and receivables are assets which are not included in derivative assets. Loans and receivables arise when money, goods or services are delivered to a debtor. They are not quoted in an active market and payments related to them are either fixed or determinable. Loans and receivables granted by the Group are measured at amortized cost.

Loans and receivables include loan receivables, trade receivables, other receivables and cash. They are included in current or non-current financial assets in accordance with their maturity. Loan and trade receivables falling due after 12 months are discounted, if no interest is charged separately, and the increase in the receivable which reflects the passage of time is recognized as interest income in financial income and expenses.

Trade receivables are carried at the original invoice amount less the share of the discounted interest and an estimate made for doubtful receivables. Estimate made for doubtful receivables is based on a periodic review of all outstanding amounts. For example payment defaults or late payments are considered as indications of impairment of the receivable. Impairment losses of trade receivables are recorded in a separate allowance account within trade receivables, and the impairment losses are recognized in profit or loss as other operating expenses. If the impairment loss is final, the trade receivable is derecognized from the allowance account. If a payment is later received from the impaired receivable, the received amount is recognized in profit or loss as a deduction of other operating expenses. If no impairment loss has been recognized in allowance account and the impairment loss of the trade receivable is found to be final, impairment loss is recognized directly as deduction of trade receivables.

Loan receivables are carried at the original amount less an estimate made for doubtful receivables. Estimate made for doubtful receivables is based on a review of all outstanding amounts at the end of the reporting period. For example payment defaults or late payments are considered as indications of impairment of the receivable. Impairment losses of loan receivables are recognized in profit or loss as financial expenses. If a payment is later received from the impaired receivable, the received amount is recognized in profit or loss in financial items.

Available-for-sale Financial Assets

Available-for-sale financial assets are assets not classified as derivative assets, assets at fair value through profit or loss or loans and receivables.

Glaston has classified other shares than shares in associates as available-for-sale financial assets.

Glaston records changes in fair value of available-for-sale assets as other comprehensive income net of tax, and they are included in fair value reserve in equity until the assets are disposed, at which time the cumulative gain or loss is reclassified from equity in profit or loss as a reclassification item.

Listed investments are measured at the market price at the end of the reporting period. Investments, for which fair values cannot be measured reliably, such as unlisted equities, are reported at cost or at cost less impairment. If the available-for-sale asset is impaired, impairment loss is recognized immediately in profit or loss.

Trade date accounting is used in recognizing purchases and sales of available-for-sale financial assets.

Available-for-sale assets are included in non-current assets in the statement of financial position.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash and other financial assets. Other financial assets are highly liquid investments with remaining maturities at the date of acquisition of three months or less. Bank overdrafts are included in current interest-bearing liabilities.

Financial Liabilities Measured at Amortized Cost

On initial recognition financial liabilities are measured at their fair values that are based on the consideration received. Subsequently, financial liabilities are measured at amortized cost using the effective interest method. Transaction costs are included in the acquisition cost.

Financial liabilities measured at amortized cost include convertible bond, pension loans, loans from financial institutions, finance lease liabilities, debenture bond, trade payables and advances received. They are included in current or non-current liabilities in accordance with their maturity.

Interest expenses are accrued for and mainly recognized in profit or loss for each period. If an asset is a qualifying asset as defined in IAS 23 Borrowing Costs, the borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized to the acquisition cost of the asset. The capitalization applies mainly to property, plant and equipment and intangible assets.

At the end of 2015 and 2014 Glaston had no convertible bond.

Net sales include the total invoicing value of products sold and services provided less discounted interest and sales tax, cash discounts and rebates. Foreign exchange differences arising from trade receivables are recognized as sales adjustments.

Revenue is recognized after the risks and rewards of ownership of the goods have been transferred to the buyer. Normally, revenue recognition takes place at the date of the delivery in accordance with the delivery terms. Revenue from services rendered and reparation work made is recognized in profit or loss when the service has been rendered or the work has been finished.

Revenue from tailor-made glass processing machine deliveries is recognized based on a milestone method with two milestones. Revenue from a glass processing machine is recognized when the machine delivery leaves the manufacturing plant and the revenue from the installation is recognized when the machine has been installed and is taken into use by the customer. The portion of the total estimated costs of the project, allocated to the revenue recognized, is recognized in profit or loss simultaneously with the revenue recognition. Costs which are attributable to a project, for which revenue is not yet recognized, are included in inventories as unfinished construction contracts.

The Group has various pension plans in accordance with the local conditions and practices in the countries where it operates. The pension plans are classified as defined contribution plans or defined benefit plans. The payments to the schemes are determined by actuarial calculations.

The contributions to defined contribution plans are charged to profit or loss in the period to which the contributions relate.

In addition to defined benefit pensions, Glaston has other long-term employee benefits, such as termination benefits. These benefits are accounted for as post-employment benefits, and they are presented separately from defined benefit pensions.

The obligations for defined benefit plans have been calculated separately for each plan. Defined benefit liabilities or assets, which have arisen from the difference between the present value of the obligations and the fair value of plan assets, have been entered in the statement of financial position.

The defined benefit obligation is measured as the present value of the estimated future cash flows using interest rates of government securities that have maturity terms approximating the terms of related liabilities or similar long-term interests.

For the defined benefit plans, costs are assessed using the projected unit credit method. Under this method the cost is charged to profit or loss so as to spread over the service lives of employees.

According to the standard Glaston records actuarial gains and losses in other comprehensive income. Only current and past service costs as well as net interest on net defined benefit liability can be recorded in profit or loss. Other changes in net defined benefit liability are recognized in other comprehensive income with no subsequent recycling to profit or loss.

Glaston Corporation has share-based incentive plans for the Group’s key personnel. Depending on the plan, the reward is settled in shares, cash, or a combination thereof, provided that the key employee’s employment or service with the Group is in force and the criteria for the performance is fulfilled. If a key employee’s employment or service with the Group ends before the payment of a reward, the main principle is that no reward will be paid.

The granted amount of the incentive plans settled in shares is measured at fair value at the grant date, and the cash-settled part of the plans is measured at fair value at the reporting or payment date.

The expenses arising from the incentive plans are recognized in profit or loss during the vesting periods. The cash-settled portion of the incentive plans is recorded as a liability in the statement of financial position, if it has not been paid, and the portion settled in shares is recorded in retained earnings in equity net of tax. Glaston records the personnel costs arising from the share-based incentive plans to the extent it is liable to pay them. The share-based incentive plans are described in Note 29 to the consolidated financial statements.

The consolidated financial statements include current taxes, which are based on the taxable results of the group companies for the reporting period together with tax adjustments for previous reporting periods, calculated in accordance with the local tax rules, and the change in the deferred tax liabilities and assets.

Income taxes which relate to items recognized in other comprehensive income are also recognized in other comprehensive income.

The Group’s deferred tax liabilities and assets have been calculated for temporary differences, which have been obtained by comparing the carrying amount of each asset or liability item with their tax bases. Deferred tax assets are recognized for deductible temporary differences and tax losses to the extent that it is probable that taxable profit will be available, against which tax credits and deductible temporary differences can be utilized. In calculating deferred tax liabilities and assets, the tax rate used is the tax rate in force at the time of preparing the financial statements or which has been enacted by end of the reporting period.

Principal temporary differences arise from depreciation and amortization of property, plant and equipment and intangible assets, defined benefit plans, recognition of net assets of acquired companies at fair value, measuring available-for-sale assets and derivative instruments at fair value, inter-company inventory profits, share-based payments and confirmed tax losses.

Glaston includes in non-recurring items mainly items arising from restructuring and structural changes. They can include expenses arising from personnel reduction, product portfolio rationalization, changes in production structure and from reduction of offices. Impairment loss of goodwill is also included in non-recurring items. Non-recurring items are recognized in profit or loss in the income or expense category where they belong by their nature and they are included in operating result. In its key ratios Glaston presents also operating result excluding non-recurring items.

If a non-recurring expense is reversed for example due to changes in circumstances, the reversal is also included in non-recurring items.

In addition, exceptionally large gains or losses from disposals of property, plant and equipment and intangible assets as well as capital gains or losses arising from group restructuring are included in non-recurring items.

Goodwill represents the excess of the acquisition cost over fair value of the assets less liabilities of the acquired entity. Goodwill arising from the acquisition of foreign entities of acquisitions made after 1 January, 2004, is treated as an asset of the foreign entity and translated at the closing exchange rates at the end of the reporting period. Goodwill arising from the acquisitions of foreign entities made before 1 January, 2004, has been translated into euros at the foreign exchange rate prevailing on the acquisition date.

Acquisitions made after 1 January, 2004, have been recognized in accordance with IFRS 3. Purchase consideration has been allocated to intangible assets, if they have met the recognition criteria stated in IAS 38 (Intangible Assets). Acquisitions made before 1 January, 2004, have not been restated to be in accordance with IFRS-standards. The revised IFRS 3 standard has been applied for business combinations made after 1 January, 2010.

In accordance with IFRS 3 Business Combinations, goodwill is not amortized. The carrying amount of goodwill is tested annually for impairment. The testing is made more frequently if there are indications of impairment of the goodwill. Any possible impairment loss is recognized immediately in profit or loss.

Glaston’s goodwill has been allocated to the cash generating units of the group, which are Heat Treatment and Services.

Intangible asset is recognized in the balance sheet if its cost can be measured reliably and it is probable that the expected future economic benefits attributable to the asset will flow to the Group. Intangible assets are stated at cost and amortized on a straight line basis over their estimated useful lives. Intangible assets with indefinite useful life are not amortized, but tested annually for impairment.

Acquired intangible assets recognized as assets separately from goodwill are recorded at fair value at the time of the acquisition of the subsidiary.

The estimated useful lives for intangible assets are as follows:

Computer software, patents,
licenses, trademarks, product rights    3-10 years
Capitalized development expenditure    5-7 years
Other intangible assets    5-10 years

Research costs are expensed as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products, is capitalized if the product is technically and commercially feasible and the Group has sufficient resources to complete development and to use or sell the intangible asset. Amortization of the capitalized expenditure starts when the asset is available for use. The intangible assets not yet available for use are tested annually for impairment. Research expenditure and development expenditure recognized in profit or loss are recognized in operating expenses.

Borrowing costs are capitalised as part of the acquisition cost of intangible assets if the intangible assets are qualifying assets as defined in IAS 23 Borrowing Costs. In 2015 or 2014 Glaston did not have any qualifying assets.

Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. The cost of self-constructed assets includes the cost of materials, direct labour and an appropriate proportion of production overheads. When an asset consists of major components with different useful lives, they are accounted for as separate items. Assets from acquisition of a subsidiary are stated at their fair values at the date of the acquisition.

Depreciation is recorded on a straight-line basis over expected useful lives. Land is not depreciated since it is deemed to have indefinite useful life.

The most common estimated useful lives are as follows:

Buildings and structures    25-40 years
Heavy machinery    10-15 years
Other machinery and equipment    3-5 years
IT equipment    3-10 years
Other tangible assets    5-10 years

Gain on the sale of property, plant and equipment is included in other operating income and loss in operating expenses.

The costs of major inspections or the overhaul of property, plant and equipment items, that occur at regular intervals and are identified as separate components, are capitalized and depreciated over their useful lives. Ordinary maintenance and repair charges are expensed as incurred.

Borrowing costs are capitalised as part of the acquisition cost of tangible assets if the tangible assets are qualifying assets as defined in IAS 23 Borrowing Costs. In 2015 or 2014 Glaston did not have any qualifying assets.

A discontinued operation is a segment or a unit representing a significant geographical area, which has been disposed of or is classified as held for sale. The profit for the period attributable to the discontinued operation is presented separately in the consolidated income statement. Also post-tax gains and losses recognized on the measurement to fair value less costs to sell or on the disposal of the asset or disposal group are presented in the income statement as result of discontinued operations. Comparative information has been restated.

Non-current assets or disposal groups are classified as held for sale and presented separately in the statement of financial position if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. In order to be classified as held for sale the asset or disposal group must be available for immediate sale in its present condition and the sale must be highly probable. In addition, the sale should qualify for recognition of a complete sale within one year from the date of the classification.

An asset classified as held for sale is measured at the lower of its carrying amount and fair value less costs to sell and it is not depreciated or amortized.

Also liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the statement of financial position.

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations is not applied retrospectively if the valuations and other information required by the standard were not obtainable at the time the classification criteria were met.

Annual impairment tests for goodwill are performed during the fourth quarter of the year. If there is, however, an indication of impairment of goodwill, the impairment tests for goodwill are performed earlier during the financial year. Other assets of the Group are evaluated at the end of each reporting period or at any other time, if events or circumstances indicate that the value of an asset has been impaired. If there are indications of impairment, the asset’s recoverable amount is estimated, based on the higher of an asset’s fair value less costs to sell and value in use. An impairment loss is recognized in profit or loss whenever the carrying amount of an asset or cash generating unit exceeds its recoverable amount. If subsequently recording the impairment loss a positive change has occurred in the estimates of the recoverable amount, the impairment loss made in prior years is reversed no more than up to the value which would have been determined for the asset, net of amortization or depreciation, had not impairment loss been recognized in prior years. For goodwill, a recognized impairment loss is not reversed.

Cash flow projections have been calculated on the basis of reasonable and supportable assumptions. They are based on the most recent financial plans and forecasts that have been approved by management. Estimated cash flows are used for a maximum of five years. Cash flow projections beyond the period covered by the most recent plans and forecasts are estimated by extrapolating the projections. The discount rate is the weighted average cost of capital. It is a pre-tax rate and reflects current market assessments of the time value of money at the time of review and the risks related to the assets. Impairment of assets has been described in more detail in Note 12 to the consolidated financial statements.

Inventories are reported at the lower of cost and net realisable value. Cost is determined on a first in first out (FIFO) basis, or alternatively, weighted average cost. Net realisable value is the amount which can be realized from the sale of the asset in the normal course of business, after allowing for the estimated costs of completion and the costs necessary to make the sale.

The cost of finished goods and work in process includes materials, direct labour, other direct costs and a systematically allocated appropriate share of variable and fixed production overheads. As Glaston’s machine projects are usually not considered to be qualifying assets as defined in IAS 23, borrowing costs are not included in the cost of inventory in normal machine projects.

Used machines included in the inventory are measured individually so that the carrying amount of a used machine does not exceed the amount that is expected to be received from the sale of the machine. In this measurement the costs arising from converting the used machine back to saleable condition are taken into account.

Prototypes of new machines included in inventory are measured at the lower of cost and net realisable value.

Government or other grants are recognised in profit or loss in the same periods in which the corresponding expenses are incurred. Government grants received to acquire property, plant and equipment are reduced from the acquisition cost of the assets in question.

Glaston Group has entered into various operating leases, the payments under which are treated as rentals and charged to profit or loss over the lease term.

Leases of property, plant and equipment where Glaston has substantially all the rewards and risks of the ownership are classified as finance leases. Finance leases are capitalized at the inception of the lease at the lower of the fair value of the leased asset or the present value of the minimum lease payments. Lease payments are allocated between liability and finance charges. The lease liabilities net of finance charges are included in interest-bearing liabilities, with the interest element charged to profit or loss over the lease period.

Property, plant and equipment acquired under finance lease contracts are depreciated over the shorter of the useful life of the asset or the lease period.

The Group has acquired machinery and equipment under finance leases.

IFRIC 4 Determining Whether an Arrangement Contains a Lease is applied to such agreements, which are not leases in legal form, but which in substance convey the right to use an asset for an agreed period of time in return for a payment. If an arrangement or part of it is determined to be a lease, it or part of it is classified as finance or operating lease and accounted for under the guidance in IAS 17 Leases.

A provision is recognized when as a consequence of some previous event there has arisen a legal or constructive obligation, and it is probable that this will cause future expenses and the amount of the obligation can be evaluated reliably.

A restructuring provision is booked only when a detailed and fully compliant plan has been prepared for it and implementation of the plan has been started or notification of it has been made known to those whom the arrangement concerns. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If the time value of money is material, provisions are discounted.

A provision for warranties is recognized when the underlying products are sold. The provision is estimated on the basis of historical warranty expense data. Warranty provision is presented as non-current or current provision depending on the length of the warranty period.

The amount and probability of provision requires management to make estimates and assumptions. Actual results may differ from these estimates.

In June 2015, Glaston Corporation completed the sale of the pre-processing machines business and reorganized its business and reporting structure. As a result of the sale, Glaston has re-evaluated its reporting segments and, as of 1 July 2015, has combined the operating segments, Machines and Services, into a single reporting segment. The remaining business consists of the manufacture and sale of heat treatment glass machines as well as the service operations for these machines.

The reportable segment applies Glaston Group’s accounting and measurement principles. 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. Glaston follows the same commercial terms in transactions between segment as with third parties.
The reportable segment is disclosed in more detail in the Note 5 to the consolidated financial statements.

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the end of the reporting period and the recognized amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.

In addition, management uses judgment in applying the accounting principles and in choosing the applicable accounting policies, if IFRS allow alternative methods.

The following items include critical accounting estimates: impairment testing of assets; estimated fair values of property, plant and equipment and intangible assets acquired in an acquisition and their estimated useful lives; useful lives of other intangible assets and property, plant and equipment; future economic benefits arising from capitalized development cost; measurement of inventories and trade and loan receivables; recognition and measurement of deferred taxes; estimates of the amount and probability of provisions and actuarial assumptions used in defined benefit plans.

The most significant management estimates relate to impairment tests, which require use of estimates in the calculations. In impairment testing management estimates recoverable amount of an asset or a cash generating unit. Recoverable amount is the higher of fair value less costs to sell and value in use. When calculating value in use, management estimates the future cash flows as well as the discount rates used in discounting the cash flows. Discount rates reflect current market assessments of the time value of money at the time of impairment testing and the risks related to the tested assets. Estimated cash flows include assumptions of, among other things, future prices, production levels, costs and development of the markets. Impairment loss is recorded if the carrying amount exceeds recoverable amount. The sensitivity analyses related to the impairment tests performed are described in Note 12 to the consolidated financial statements.

Useful lives of intangible assets and property, plant and equipment are based on management’s best estimate of the period the asset is expected to be available for use by Glaston. The actual useful life can, however, differ from the expected useful life resulting in adjustment of annual depreciation or amortization of the asset or in recording of impairment loss.

Glaston capitalizes development costs of new products. In addition to other capitalization criteria, management has to estimate the future economic benefits arising from the development cost. If management estimates that there will not be future economic benefits, the development cost is recognized in profit or loss. Whether a development cost is capitalized or recognized immediately in profit or loss can have an effect on the result of the reporting period. At the end of the reporting period of 2015, Glaston’s continuing operations had EUR 4.0 (5.3) million of capitalized development expenditure in the statement of financial position.

Measurement of inventories and trade and loan receivables includes some management estimates. Inventories are measured at lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Net realisable value is used in testing the recoverable amount of inventories in order to avoid the inventories being carried in excess of amount expected to be realized from their sale or use. If management estimates that carrying amount of a trade or loan receivable exceeds its fair value, an impairment loss is recognized. For example payment defaults or late payments are considered as indications of impairment of the receivable. The carrying amount of continuing operations’ inventory was at the end of the reporting period EUR 17.3 (21.8) million, the carrying amount of trade receivables continuing operations was EUR 20.8 (24.2) million and the carrying amount of loan receivables was EUR 1.8 (2.4) million.

Recognition and measurement of deferred tax liabilities and assets include management estimates, especially deferred tax assets arising from confirmed tax losses of group companies or from other temporary differences. Deferred tax assets are recognized for deductible temporary differences and tax losses to the extent that it is probable that taxable profit will be available against which tax credits and deductible temporary differences can be utilized. All tax liabilities and assets are reviewed at the end of the reporting period and changes are recognized in profit or loss. At the end of the reporting period, the carrying amount of deferred tax assets of continuing operations was EUR 2.4 (3.0) million and the carrying amount of deferred tax liabilities of continuing operations was EUR 0.4 (1.1) million.

If Glaston’s management has assessed that as a result of a past event Glaston has a legal or constructive obligation, and that it is probable, that an outflow of resources will be required to settle the obligation, the management has estimated the amount of provision recognized from the obligation. The amount of the provision is the management’s best estimate of the amount required to settle the obligation at the end of the reporting period. Glaston’s most significant provision at the end of the reporting period was warranty provision of continuing operations, EUR 3.5 (4.0) million. The management’s estimate of the warranty provision is based on previous experience. The estimate of the restructuring provision is based on the restructuring plan in which the locations and personnel concerned have been identified. If possible, external experts have been used in estimating the amount of the provision. If the management has estimated that it is unlikely, that Glaston has an obligation, a contingent liability is presented in the notes to the consolidated financial statements.

Calculation of defined benefit pensions and other defined long-term employee benefits requires choosing certain assumptions which actuaries use in calculation of the obligations arising from defined benefit plans. These assumptions include, among other things, discount rates used in the measurement of plan assets and liabilities as well as other actuarial assumptions such as future salary increases and mortality rate.

Dividends proposed by the Board of Directors are not recorded in the financial statements until they have been approved by the shareholders at the Annual General Meeting.

Treasury shares acquired by the company and the related costs are presented as a deduction of equity. Gain or loss on surrender of treasury shares are recorded in reserve for invested unrestricted equity net of tax.

Basic earnings per share are calculated by dividing the net result attributable to owners of the parent by the weighted share-issue adjusted average number of shares outstanding during the year, excluding shares acquired by the Group and held as treasury shares.

When calculating diluted earnings per share, the net result attributable to owners of the parent is adjusted with the effect on profit or loss of the convertible bond and the weighted share-issue adjusted average number of shares outstanding during the year is adjusted by the effect of the convertible bond on the number of shares.

Earnings per share arising from continuing and discontinued operations are presented separately.

Glaston’s order book includes the binding undelivered orders of the Group at the end of the reporting period. Orders for new machines and machinery upgrades are recognized in the order book only after receiving a binding agreement and either a down payment or a letter of credit. Also orders of software licenses of discontinued operations have been recognized in the order book only after receiving a binding agreement and either a down payment or a letter of credit.

Glaston’s orders received include the binding orders received and recognized in the order book during the reporting period as well as net sales of the service business, including net sales of spare parts and tools. Machine upgrades, which belong to the service business, are included in orders received based on the binding orders received and recognized in the order book during the reporting period. For Software Solutions, which has been reclassified as discontinued operations, orders received include binding undelivered software license orders as well as the net sales of software services.

Glaston Corporation has not yet adopted the following new and amended standards and interpretations already issued by the IASB. The Group will adopt them as of the effective date or, if the date is other than the first day of the financial period, from the beginning of the subsequent financial period.

Will apply the following new or revised or amended standards and interpretations from 1 January, 2016, if EU has approved them:

 

  • Amendment to IAS 1 Presentation of Financial Statements: Disclosure Initiative* (effective for financial periods beginning on or after 1 January 2016): The amendments are designed to encourage companies to apply judgement in determining what information to disclose in the financial statements. For example, the amendments clarify the application of the materiality concept and judgement when determining where and in what order information is presented in the financial disclosures. The interpretation is not assessed to have a significant impact on the consolidated financial statements of Glaston.
  • Amendments to IAS 16 Property, Plant and Equipment* and IAS 38 Intangible Assets – Clarification of Acceptable Methods of Depreciations and Amortization* (effective for financial periods beginning on or after 1 January 2016): The amendments clarify IAS 16 and IAS 38 that revenue-based method cannot be used to depreciate property, plant and equipment and may only be used in limited circumstances to amortize intangible assets. The amendments are not assessed to have an impact on the consolidated financial statements of Glaston.
  • Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture* (effective for financial periods beginning on or after 1 January 2016): The amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. A full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. The amendments are not assessed to have an impact on the consolidated financial statements of Glaston. Other new or amended standards or interpretations applicable from 1 January, 2016 are not material for Glaston Group.
  • New IFRS 15 Revenue from Contracts with Customers* (effective for financial periods beginning on or after 1 January 2018):  IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. Under IFRS 15 an entity shall recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods delivered or services rendered. Glaston assesses the impact of the IFRS 15 standard to be significant on the consolidated financial statements.
  • New IFRS 9 Financial Instruments* (effective for financial periods beginning on or after 1 January 2018): IFRS 9 replaces the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement. Glaston is assessing the impact of IFRS 9 on the consolidated financial statements.
  • New IFRS 16 Leases (estimated effective date for financial periods beginning of after 1 January 2019)*: IFRS 16 replaces the existing guidance in IAS 17 Leases. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. Glaston is assessing the impact of IFRS 16 on the consolidated financial statements.

* Not yet endorsed for use by the European Union as of 31 December 2015.

IR Calendar

2017
11 January 2017Silent period begins
10 February 2017Financial Statements 2016
17 February 2017Notifications of items for meeting agenda of the Annual General Meeting
Week 11, 2017Annual Report 2016
27 March 2017Silent period begins
4 April 2017Annual General Meeting
26 April 2017Interim Report 1 January - 31 March 2017
11 July 2017Silent period begins
10 August 2017Interim Report 1 January - 30 June 2017
2 October 2017Silent period begins
30 October 2017Interim report 1 January - 30 September 2017

Investor Relations

Contact Information

agneta_selroosAgneta Selroos, Communications Director

Tel.: +358 10 500 6105
Mobile: +358 40 745 3737
Fax: +358 10 500 6515
agneta.selroos[at]glaston.net

Visiting and postal address:
Glaston Oyj Abp
Lönnrotinkatu 11
FI-00120 Helsinki

Disclosure Policy

Glaston’s Disclosure Policy describes the principles and procedures by which the company communicates with the capital markets.

Glaston aims to ensure that all parties operating in the market have immediate and simultaneous access to essential and adequate information in order to determine the value of Glaston’s shares.

Disclosure Policy (PDF)