20
22
Annual Review 2022
Table of Contents
Strategy execution proceeding .............................................. 3
President and CEO's Review .....................................................4
Glaston sustainability report.....................................................6
The frontrunner in glass processing .....................................7
Megatrends supporting Glaston's business .................. 12
Glaston's sustainability and its management ...............13
UN Sustainable Development Goals...................................19
Responsible own activities.......................................................20
Responsible sourcing .................................................................. 33
Responsible partner ....................................................................36
Responsible member of society .........................................40
Corporate Governance Statement 2022 ......................... 44
Remuneration Report for Governing Bodies 2022 ...... 56
The Board of Directors’ Review 2022 ................................. 65
Per Share Data .................................................................................93
Financial Ratios ................................................................................94
Definitions of key ratios ..............................................................96
Consolidated Financial Statements ................................... 98
Consolidated Statement of Profit or Loss ......................99
Consolidated Statement of
Comprehensive Income ........................................................ 100
Consolidated Statement of Financial Position ........... 101
Consolidated Statement of Changes in Equity ........102
Consolidated Statement of Cash Flows .......................104
Supplemental Information for Statement
of Cash Flows .................................................................................105
General accounting policies .................................................106
Parent Company Financial Statements ........................179
Income Statement of the Parent
Company (FAS) ............................................................................179
Balance Sheet of the Parent Company (FAS) ..........180
Parent Company Cash Flow Statement (FAS) .......... 181
Notes to Parent Company Financial
Statements (FAS) ........................................................................182
Auditor’s Report ............................................................................192
Glaston Annual Review 2022 2
Glaston 2022
Sustainability
Governance
Financial Review
Strategy execution proceeding
Glaston’s revised strategy with key
objectives for 2021–2025 was launched
in August 2021. The key objectives are
clearly improved organic growth and
profitability, based on Glaston’s own
strategic initiatives and the expected
market growth.
In 2022, the strategy implemen-
tation proceeded according to
plans. In line with Glaston’s strategic
focus to grow its business in China
and improve operational efficiency,
the plan to establish production for
Automotive standard pre-processing
equipment in Tianjin was disclosed in
June. Demonstrating the viability of
the strategic initiative, the first orders
for the new Automotive pre-process-
ing CHAMP EVO lines were received in
October.
Glaston entered the market of tem-
pering technologies for solar panel
production and introduced the new
flat tempering line CHF Solar for solar
panel tempering. A total of five solar
lines will be delivered from the factory
in Tianjin in the first half of 2023.
Cross-selling strongly supported
the order intake development in
2022. A prime example was the big-
gest-ever order for Insulating Glass
technologies that was received in
August for multiple insulating glass
lines.
In 2022, progress was made with
Strategic targets 2021–2025: performance in 2022
Financial targets 2022 2021
Annual average net sales clearly exceeding
the addressable equipment market growth
+17% +7%
EBITA 10% 6.4% 6.1%
ROCE 16% 10.5% 6.1%
 2022 2021
Net Promoter Score >40 53 -
Lost Time Accidents zero, LTIFR 3.9 3.3
Employee engagement rate >75 (out of 100) 70 -
CO
2
* emissions in relation to net sales -50% TARGET ACHIEVED -57% -13%
*scope 1 and 2
the new offering development, and
research and product development
expenditure increased to 4.3% (3.8%)
of net sales.
Glaston Annual Review 2022 3
GLASTON 2022
Sustainability
Governance
Financial Review
Y
ear 2022 was a year of
strategy execution. Both our
financial and non-financial
targets are showing good
progress and work continues to reach
our ambition set for 2025.
Glaston succeeded in executing
the strategy despite the challenging
geopolitical and macroeconomic
situation. Demand for our products
and services was strong with cus-
tomer activity at a high level. During
A successful
year focusing
on strategy
execution
President & CEO’s Review
the year we received a historically big
order and continued expanding our
portfolio with customers by closing
many cross-selling opportunities, as
well as introduced new products to
the market.
With growing numbers in all seg-
ments, full-year new orders were up
17% from the previous year, totaling
EUR 253.0 million. For the full year, net
sales growth of 17% was recorded with
all segments contributing to the out-
Glaston Annual Review 2022 4
GLASTON 2022
Sustainability
Governance
Financial Review
come. The sales growth had a positive
impact on the Group's profitability,
while we learned how to manage the
challenging supply chain situation.
Full-year comparable EBITA increased
by 23% compared to the previous year.
Strategy in action during 2022
When meeting the Glaston teams,
I have noticed many holding our
strategic targets visible. That brings
me confidence that we’re living our
strategy in our daily work supported
by common leadership principles. To
validate the employee engagement,
measurement of this strategic target
started in the latter part of the year
and the engagement rate was 70.
We are committed to reducing CO
2
emissions in our own operations. In
2022, our greenhouse gas emissions
in relation to net sales decreased by
57% compared to the baseline and we
already met our strategic target. The
work continues, and we are already
working on setting a new emissions
target covering our upstream and
downstream value chain.
Focusing on succeeding together
with our customers is an ongoing
effort. We started the measurement
of the strategic group-wide customer
satisfaction target, Net Promoter
Score (NPS), which was at 53 and
exceeded our target of 40. We have
every reason to be proud of this good
benchmark result. In 2023, meas-
urement and scope will be further
developed.
Safety was high on our agenda
throughout the year and our Group-
wide safety target is zero accidents by
2025. Safety awareness and behav-
iour has increased, even though our
lost-time accidents increased by one
to a total of six and LTIFR was 3.9. In
2023, our systematic work to further
develop the safety culture will con-
tinue.

sustainability
The energy crisis of 2022 raised
the concrete need to seek ways to
become more energy efficient. While
all our Heat Treatment and Insulating
Glass products are built for efficient
use of electricity they are also key
enablers in producing modern dou-
ble- or triple-glazed insulating glass
units and coated, low-emissivity
safety glass. Those are a necessity in
increasing the energy efficiency and
safety of buildings and contributing to
reaching carbon neutrality in societies.
Glaston’s purpose is to build a bet-
ter tomorrow through safer, smarter,
and more energy-efficient glass
solutions. I welcome the glass industry
to meet at Glass Performance Days in
June 2023 in Tampere, Finland to dis-
cuss and share ways to take the entire
industry toward a sustainable future,
together.
I thank the Glaston team for their
contribution throughout 2022. I'm
confident that we will be able to make
the right actions most efficiently and
smartly as we continue focusing on
growing our business’ profitably as a
team.
I would also like to thank our cus-
tomers and other stakeholders for
your continuous trust and support.
Anders Dahlblom
CEO & President
Demand for our products and
services was strong with customer
activity at a high level.”
Glaston Annual Review 2022 5
GLASTON 2022
Sustainability
Governance
Financial Review
Sustainability
Glaston Annual Review 2022 6
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
The frontrunner in
glass processing
Glaston’s purpose is to build
a better tomorrow through
safer and more energy-effi-
cient glass solutions.
Glaston is the frontrunner in glass
processing industry technologies
and services. Glass processed using
Glaston’s machines is used in the
architectural glass, automotive glass,
solar energy and display industries.
Most of the glass produced with the
company’s technology is supplied to
the construction industry.
In line with its vision, Glaston seeks
to lead the global glass processing
industry forward with innovative tech-
nologies and lifecycle solutions.
Demand for more energy-efficient
and environmentally sustainable glass
solutions is continually growing. Ener-
gy-efficient double- or triple-glazed
insulating glass units and coated,
low-emissivity glass processed with
Glaston’s technology meet the ener-
gy-saving needs of buildings.
Greater attention is being paid to
the safety of buildings, and for glazing
solutions this means increasing use of
tempered and laminated glass. Tem-
pering, laminating and insulating glass
processes are Glaston’s core exper-
tise, and in these the company offers
the most advanced technology.
The fight against climate change
is also strongly impacting glass
processing and this has led to rapid
development in thin glass and glass
used in solar energy solutions. As
the industry’s innovative technology
leader, Glaston is strongly involved in
this development, and is continually
launching more advanced technology
to meet stricter market requirements.
Glaston Annual Review 2022 7
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Glaston as a company
In 2019, the scope of Glaston’s
operations grew significantly when
the company acquired the Ger-
man-Swiss company Bystronic glass.
The acquisition expanded Glaston’s
offering to insulating glass technolo-
gies in the architectural market and
to pre-processing in the automotive
and display markets.
Glaston has production in Ger-
many, Finland, China and Switzerland.
Glaston’s factories in Finland, Switzer-
land and China assemble machines,
while in Germany machines are
manufactured. In addition, the com-
pany has sales and service points in
nine countries. From these locations,
Glaston serves its customers, who
operate in over 100 countries. The
company is domiciled in Helsinki,
Finland.
Glaston’s group structure com-
prises three segments:
• Glaston Insulating Glass
• Glaston Heat Treatment and
• Glaston Automotive & Display
Glaston also offers digital services,
such as glass processing machine
remote monitoring and fault analysis
services, and consulting and engi-
neering services. Personnel also work
in sales of machinery and services
and in Group functions.
The majority of the company’s busi-
ness is targeted at the architectural
segment, in which Glaston’s products
provide key technologies to improve
the energy efficiency and safety of
buildings.
Glaston’s strategic focus is to grow
business in China, and the company will
start production of standard automo-
tive glass pre-processing equipment
at the factory in Tianjin, from which the
first orders will be delivered in 2023. In
autumn 2022, a strategic step was also
taken into the market of solar panel
glass technologies by launching a new
flat tempering line suitable for process-
ing solar panel glass.
Due to the Russia’s invasion of Ukraine in
February 2022, Glaston ended its business
in Russia. All work contracts, six in total, were
terminated and two upgrade projects were
halted and removed from the order book.
In 2021, Russia accounted for less than one
percent of Glaston’s net sales.
Glaston Corporation’s share (GLA1V) is
listed on the main list of Nasdaq Helsinki Ltd.
At the end of 2022, Glaston had 7,593 share-
holders. At the end of the year, the com-
pany’s largest shareholders were Ahlstrom
Capital B.V. (26.39%), Hymy Lahtinen Oy
(12.22%), Varma Mutual Pension Insurance
Company (7.50%), Ilmarinen Mutual Pension
Insurance Company (7.31%) and OP-Finland
Small Firms Mutual Fund (6.04%).
Glaston Automotive & Display
segment provides both standard-
ized and customized solutions for
pre-processing automotive and display
industry glass, as well as related main-
tenance, upgrade and modernization
services, and spare parts. The Auto-
motive & Display segment comprises
the Automotive & Display Technologies
product area and related services.
Most of the segment’s personnel are
located in Switzerland.
Glaston’s segments focus on different sectors
Glaston Insulating Glass
segment provides high technology
machines for the manufacture
of insulating glass, maintenance,
upgrade and modernization ser-
vices, and spare parts. The Insu-
lating Glass segment comprises
the Insulating Glass Technologies
product area and maintenance
services for insulating glass
machines. Most of the segment’s
personnel are located in Germany.
Glaston Heat Treatment segment
encompasses a wide and technologi-
cally advanced range of heat treatment
machines, maintenance, upgrade and
modernization services, and spare
parts for glass flat tempering, bending,
bending tempering and laminating. The
Heat Treatment segment comprises the
Heat Treatment Technologies product
area and maintenance services for heat
treatment machines. Most of the seg-
ment’s personnel are located in Finland.
Glaston Annual Review 2022 8
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Cornerstones of strategy
The objective of Glaston’s new strategy for 2021–2025 is clearly improving organic growth and profitability. Implementation of the strategy is supported by
Group-wide cornerstone initiatives: innovate with customers, digitalization, empowering Glastonians, sustainable operations, and mastering sourcing and
manufacturing.
Glaston’s strategic cornerstone initiatives
Implementation of the strategy is supported by Group-wide cornerstone
initiatives:
1. Innovate with customers to win: strengthening Glaston’s technology
leadership by seamless integration of customer understanding with faster
innovation and development work.
2. Leading digital transformation: building the tools and infrastructure across
all Glaston operations to lead the industry’s digital transformation.
3. Empowering Glastonians to thrive: is essential in building the desired cor-
porate culture. Leadership development and the leveraging of common
leadership principles will play a key role in implementing the strategy and
embedding it into everyday working life.
4. Elevate sustainability and continuous improvement: will enable long-term
success by building a stronger culture of continuous improvement and
systematically progressing the sustainability agenda.
5. Master global sourcing and manufacturing: will enable operational effi-
ciency and growth through more harmonized sourcing and manufacturing
processes.
The strategy is supported by non-nancial strategic targets promoting
sustainability:
• Customer satisfaction score (Net Promoter Score, NPS) over 40
• Group-wide safety target of zero lost time accidents (LTA, progress
measured as accident frequency, LTIFR)
• Employee engagement rate above 75 (0–100)
• Glaston’s CO
2
emissions (Scope 1+2) in relation to net sales down by
50% from the 2020 level
Glaston Annual Review 2022 9
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Implementation of the five cornerstone initiatives continued according to plan in 2022.
In the “Innovate with customers to win” initiative, steering groups for the offering
development were formed and the strategic account management program pro-
gressed well. In this way, it was possible to seamless combine customer knowledge,
product development and innovation functions, and product management.
In the “Leading digital transformation” initiative, development of Glaston’s digi-
tal vision and construction of the related ICT platforms continued. The goal is to
develop the tools and business architecture to promote the digital transformation of
the industry.
In the “Empowering Glastonians to thrive” project, global competence mapping and
the employer brand building project were completed. In addition, investments were
made in leadership, employee engagement and employee retention, to enable the
strategy to advance with full force.
In the “Elevate sustainability and continuous improvement” initiative, a roadmap for
2021−2025 was defined. In addition, measures were taken to reduce emissions, the
amount of Scope 3 emissions (value chain emissions) was calculated and the devel-
opment of sustainability reporting continued. Safety at work was one of the overar-
ching themes of the whole year. Significant positive development was made in this
area compared with the previous year.
In the “Master global sourcing and manufacturing” initiative, sourcing practices and
quality indicators were harmonized, which contributes to the development of an
efficient sourcing process that supports our growth strategy.
Summary of progress of cornerstone initiatives
Glaston Annual Review 2022 10
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
94,8
216.2
253.0
Continuous dialogue and
development work
Glaston’s goal is to be a reliable and
responsible partner for its stakehold-
ers. Stakeholders include current and
potential customers and employees,
shareholders and investors, suppli-
ers and subcontractors, the media,
public authorities and local communi-
ties as well as research institutes and
higher education institutions. Glaston
engages in continuous dialogue with
its stakeholders on topics of current
interest and to fulfill stakeholders’
expectations.
One of Glaston’s strategic cor-
nerstone initiatives is Innovate with
customers to win, which focuses on
strengthening the company’s technol-
ogy leadership by seamless integration
of customer understanding with faster
innovation and development work.
To remain at the forefront of the
development of glass processing
products and services, Glaston invests
significantly in the continuous develop-
ment of its technology portfolio and its
research and development activities.
Scope of the report
This sustainability report describes
Glaston Group’s operations in 2022.
The content of the report and the
themes covered are based on Glas-
ton’s strategy as well as a materiality
assessment of sustainability. The
report covers the entire Group.
Key Figures 2022
Americas .....29%
EMEA ..............53%
APAC ...............19%
Net sales per
region, %
Orders received per product area, € million
Heat Treatment Technologies
Insulating Glass Technologies
Automotive & Display
Technologies
Services
Unallocated and eliminations
2022
2021
Asia .................21%
Americas .....6%
EMEA ............73%
Personnel per region
at end of year, %
Heat Treatment
Insulating Glass
Automotive & Display
2022
2021
138.3
94.8
Order book, € million
13.6
11.1
2022
2021
Comparable EBITA, € million
213.5
M€
783
employ-
ees
Glaston Annual Review 2022 11
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Megatrends supporting Glaston’s business
Urbanization and megacities
Urbanization is one of the world’s most
powerful forces of change. The UN has
estimated that by 2050 nearly 70% of
the world’s population will live in cities
and, particularly in developing countries,
megacities of over 10 million inhabitants
will arise. Through urbanization, the
need for new construction will grow,
and the existing building stock, too,
will be developed, which will increase
demand for glass. Glaston contributes
to the construction of more energy-ef-
ficient societies by offering its custom-
ers a wide range of products and ser-
vices that enable them to manufacture
more energy-efficient glass products.

The use of glass in buildings has
increased significantly; well-designed
glass usage can reduce the energy
consumption of buildings, improve their
sound insulation and at the same time
increase interior brightness. People’s
preferences are also increasing the
use of glass as a building material.
This development will drive growing
demand for energy-saving glass, insu-
lating glass and solar energy solutions.
As environmental awareness
increases and construction laws and
regulations become stricter, the ener-
gy-saving requirements for buildings
will tighten. Insulating and energy-ef-
ficient glass will be increasingly used
to achieve these goals. Utilization of
solar energy in buildings is also on the
increase, resulting in growing demand
for the glass needed in solar cells.
The current energy crisis, the sharp
rise in energy prices and availability
concerns are strongly impacting the
European glass industry, which is an
energy-intensive industrial sector and
traditionally dependent on natural gas.
On the other hand, energy-related risks
could drive demand for energy-sav-
ing and renewable energy production
solutions.
Safety and healthiness
Greater attention is being paid to the
safety of buildings. Due to tightening
safety regulations, more and more
safety glass is being used, which has
meant a growing demand for tem-
pered and laminated glass, which help
protect people from injury as they are
significantly stronger than regular glass
and do not pose a risk in the event of
breakage. In addition, the abundant
natural light made possible by large
glass surfaces has been shown to be
an important factor in improving the
well-being of residents and employees.
The importance of a safe and healthy
life and working environment has grown
in recent years, and for Glaston safety is
also a strong priority internally.
Social responsibility
For a company to succeed in attract-
ing skilled and motivated employees,
it must also assume its social respon-
sibility and set itself ambitious goals
for sustainable development. Diversity
and equality are important themes in
the societal debate and in ensuring the
well-being of employees. In its own
operations, Glaston is committed to
providing a safe and good workplace
for its personnel.
Transparency of operations and
traceability of supply chains are also
increasingly important not only in
terms of risk management, but also
in the assessments of financiers and
investors.
Glaston’s business and product development are particularly
affected by the megatrends of urbanization and growing envi-
ronmental awareness. With the growing use of glass, expec-
tations for its energy efficiency, safety and versatility have
increased. The energy crisis has further underlined the impor-
tance of energy efficiency.
Glaston contributes
to the construction of
more energy-efficient
societies
Glaston Annual Review 2022 12
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Glaston’s sustainability and its management
Glaston is committed to
providing a safe and good
workplace for its employees,
being a responsible partner
to its customers, utilizing
resources efficiently, and
reducing the environmen-
tal impacts of its production
processes. Glaston’s most
significant environmental
impacts arise from the elec-
tricity used by its products
during their lifetime, and the
company’s product range
meets the growing demand
for more energy-efficient
glass technologies.
At the end of 2021, Glaston updated
the material topics of sustainability to
reflect the new strategy and changes
in the operating environment. The
assessment also took into account the
views of external stakeholders and the
company’s own personnel.
Glaston’s material sustainability
topics are:
• responsible own activities (human
resources, environment, responsible
business)
• responsible sourcing,
• responsible partner and
• responsible member of society.
In connection with the materiality
assessment, the most significant
climate and biodiversity risks related
to and arising from Glaston’s oper-
ations were also identified. Climate
risks were mainly assessed as being
medium or low. Glaston’s climate risk
management is reported in more
detail in the financial statements, in
connection with the Report of the
Board of Directors.
Glaston Annual Review 2022 13
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Responsible partner
Human resources
• Health & safety and risk prevention
• Competencies and skills, development and
training
• Diversity and inclusion
• Equality, anti-discrimination, anti-harassment
• Good leadership
Environment
• Climate impact oversight and scenarios
• Risks and opportunities related to tightening emis-
sions regulation
Responsible business
• Financial responsibility ensuring competitiveness
and profitability
• Anti-corruption and fair competition practices
• Responsible sales
Customer
• User experience and customer
satisfaction
Products & Services
• Machine quality, reliability and longevity, life-cycle
management
• Safe operation of machines and user training for
customers
• Digitalization and automation
• Information security
• Energy and material efficiency targeting circular
economy
• End product quality, safety and recyclability
Suppliers
• Supplier requirements, assessments and audits
• Human rights and workplace safety in the supply
chain
• Anti-corruption in the supply chain and sourcing
• Environmental matters in the supply chain
Responsible own activities
Material sustainability topics
Responsible sourcing
Sustainable tomorrow
• Indirect impacts on energy-efficient cities and
societies
• Indirect energy and emission reductions
• Indirect material reductions
• Sustainable end-product applications
• Development of the industry, research
co-operation
• Contributing to the decarbonization of societies
Responsible member of society
Glaston Annual Review 2022 14
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Managing sustainability
One of the focus areas of Glaston’s
strategy is sustainability. Glaston’s
Sustainability Working Group, which
includes experts from various functions,
is responsible for the systematic devel-
opment, monitoring and reporting of
the sustainability agenda. The working
group will also develop sustainability
to identify business opportunities and
to meet growing regulatory require-
ments and stakeholder expectations.
The group reports to the Executive
Management Group and the Board of
Directors.
During 2022, a roadmap towards the
sustainability goals of Glaston’s strategy
period was prepared and indicators
were specified. A plan and a timetable
of measures were approved by the
Executive Management Group and the
Board of Directors. The members of
the working group are responsible for
the implementation of the measures
according to the plan, within their own
areas of responsibility and in collabora-
tion with the functions in question.
Management of sustainability is
explained in more detail in the Report
of the Board of Directors, in connec-
tion with the reporting of non-financial
information.
Sustainability targets
In connection with strategy work, new Group-wide
non-financial strategic targets promoting sustainability
were set for 2025:
• Safety at work: zero lost time accidents (LTA, meas-
ured as accident frequency, LTIFR)
• Employee engagement rate over 75 (0–100)
• Glaston’s CO
2
emissions (Scope 1+2) in relation to net
sales down by 50% from the 2020 level
• Customer satisfaction score (Net Promoter Score,
NPS) over 40
In addition to these key targets,
Glaston’s other sustainability tar-
gets were promoted and revised. To
achieve the targets, a roadmap with
measures has been prepared, which
are explained in more detail for each
topic in this report. The key indicators
used in measuring the targets were
also specified during the year.
As part of the company’s corpo-
rate responsibility work, Glaston’s new
financing agreement has been linked
to the sustainability targets. The loan
margin of the new financing agree-
ment takes into account the reduction
of the company’s CO
2
emissions and
success in reaching safety at work
targets annually.
Glaston Annual Review 2022 15
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Topic Indicator Target 2022 2021 Timetable
Responsible
business
Training of personnel in the Code of
Conduct
Training coverage 100% 93% 97% Continuous
Safe workplace
Accident frequency (LTIFR), number of acci-
dents per million hours worked
Accident frequency zero 3.9% 3.3% Continuous
Reports of workplace harassment No reports One case
reported
No cases
reported
Continuous
Employee engagement rate Employee engagement rate over 75
(0–100)
70 – 2025
Impacts on the
environment
CO
2
emissions in own operations CO
2
emissions (Scope 1+2) in relation to
net sales down by 50% from the 2020
level
-57% -13% 2025
Emissions in value chain Calculation of Scope 3 emissions Calculated - 2022
Responsible
sourcing
Suppliers' commitment to Glaston’s Code of
Conduct (new and current suppliers)
Commitment coverage 100% 75% of main
suppliers
– 2022
Responsible
partner
Industry’s best customer experience Customer satisfaction score (NPS) over 40 53 – 2025
Technically advanced and material- and
energy-efficient products
R&D, % of net sales 4.3% 3.8% Continuous
Key sustainability objectives
Glaston Annual Review 2022 16
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Sustainability targets:
• Coverage of Code of Conduct
training (personnel) 100%
Key priorities for the strategy
period:
• Ensuring compliance with
Code of Conduct
• Anti-corruption policy training
• Fair business and competition
training
• Creating audit model for
agents
• Audit of agents
Glaston’s day-to-day activities are
guided by the Code of Conduct, which
is approved by the Board of Directors.
The Code of Conduct provides all Glas-
ton personnel with guidelines on acting
in an ethically sustainable way in the
workplace, in interaction with various
partners, customers and suppliers, and
also as a responsible actor in society.
The Code of Conduct includes, among
other things, a commitment to respect
human rights, and strictly prohibits any
form of harassment.
The Code of Conduct is published
in Finnish, English, German and Chi-
nese so that as many Glastonians
as possible can read it in their own
language. Training in the Code of
Conduct is arranged for all personnel,
and every Glaston employee must
attend such training every two years.
Training is also an integral part of the
induction of new employees. At the
end of 2022, 93% of the personnel had
completed the training. The objective
of the training is not only to familiarize
Glaston’s personnel with the Code
of Conduct, but also to support and
strengthen Glaston’s common ethical
approach and to identify and address
any problem areas.
Glaston has also published a sepa-
rate code of conduct for its suppliers
(Glaston Supplier Code of Conduct),
to which it requires suppliers to
commit. The Glaston Supplier Code
of Conduct is published in Finnish,
English, German and Chinese.
The Code of Conduct is comple-
mented by other Group-level policies
approved by the Board of Directors,
such as the anti-bribery and anti-cor-
ruption policy, and the disclosure,
information security and risk man-
Code of Conduct guides daily choices
Glaston Annual Review 2022 17
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
agement policies. In 2022, Glaston’s
Board of Directors approved a policy
on taxation.
Glaston takes competition rules
very seriously and every employee
must act in accordance with them.
Glaston regularly arranges training
for its personnel on fair business
and competition issues. The training
material is always available on the
company’s intranet. In addition, policy
briefings are regularly held for person-
nel working at the customer interface.
Glaston has a whistleblowing
channel through which personnel
can anonymously report possible
violations of the Code of Conduct or
other policies. Glaston investigates
all reported incidents promptly and
confidentially and takes appropriate
action based on the findings of the
investigation.
Combating bribery and corruption
throughout the value chain
Glaston has its own operating loca-
tions in nine countries, and from these
Glaston serves its customers in over
100 countries. In addition, the com-
pany’s own operations are comple-
mented by a global agent network.
Glaston recognizes that there is a
possible risk of corruption and fraud in
the company’s operating regions and
countries.
In its everyday activities, Glaston is
committed to combating bribery and
corruption. In order to focus particular
attention on risks related to bribery
and corruption, Glaston’s Board of
Directors approved the anti-bribery
and anti-corruption policy in 2020.
Glaston’s anti-bribery and anti-cor-
ruption policy clearly outlines the
company's practices and increases
Glaston employees’ awareness of
the risk of corrupt payments, une-
quivocally prohibits the payment and
receipt of bribes, and ensures that the
company conducts business honestly,
in compliance with anti-corruption
laws, rules and regulations.
No direct or indirect payments can
be made, nor can the company’s
funds be conveyed directly or indi-
rectly to any party to gain an improper
advantage. In addition, the compa-
ny’s personnel are instructed to avoid
conflicts of interest and to refuse all
improper payments and benefits.
New anti-bribery and anti-corrup-
tion training will be introduced in early
2023. Training is organized particularly
for the company’s management and
sales organization as well as for other
individuals whose working duties
involve an increased risk of corruption.
As a preventive measure to mini-
mize anti-bribery and anti-corruption
risks, all agent agreements related to
Glaston’s sales are concluded cen-
trally. Particular attention is paid to
commissions paid, which should be
at a reasonable level. During 2023, a
new audit model will be developed to
assess sales agents.
Glaston Annual Review 2022 18
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Glaston’s respon-
sibility theme UN Sustainable Development Goals Implementation in Glaston
Responsible
operations
Goal 3:
Ensure healthy lives and promote
well-being for all at all ages
Goal 4:
Ensure inclusive and equitable quality
education and promote lifelong
learning opportunities for all
• systematic development of occupational health and safety
• minimizing health risks: e.g. in Finland, enhanced health checks
for over 50-year-olds
• hobby sessions and exercise benefits
• eSkills online learning system for all personnel
• summer work, diploma work and trainee positions for young
people
• Ahlström Collective Impact cooperation with UNICEF Finland
Responsible member
of society
Goal 7:
Ensure access to affordable, reliable,
sustainable and modern energy for all
Goal 11:
Make cities and human settlements
inclusive, safe, resilient and
sustainable
• reducing the harmful environmental impact of cities with new
glass technologies
• providing engineering and consulting services for the
production of energy glass windows as well as for solar energy
applications
• enabling the introduction of resource-efficient and clean
technologies and production processes
• participating in the development of society by paying taxes,
wages and dividends
Responsible partner Goal 9:
Build resilient infrastructure,
promote inclusive and sustainable
industrialization and foster innovation
Goal 12:
Ensure sustainable consumption and
production patterns
Goal 17:
Revitalize the Global Partnership for
Sustainable Development
• efficient use of energy and materials and minimizing materials
and other waste
• glass processing machine energy-efficiency at heart of
product development, long life cycle, high utilization rate and
real-time quality control iLooK
• proactive and regular maintenance by utilizing cloud services
and opportunities offered by IoT
• Ahlström Collective Impact cooperation with UNICEF Finland
UN Sustainable Development Goals
Glaston supports the
United Nations Sustaina-
ble Development Goals
(SDGs), which will guide
the sustainable develop-
ment actions of member
states, companies and
other organizations up
to 2030. We have identi-
fied seven goals that also
emerge from our own
strategy and are most
material to us. These pro-
vide a broader frame of
reference for our work and
support the achievement
of these goals in our own
activities.
Glaston Annual Review 2022 19
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Responsible
own activities
Human resources
• Health & safety and risk
prevention
• Competencies and skills, devel-
opment and training
• Diversity and inclusion
• Equality, anti-discrimination,
anti-harassment
• Good leadership
Environment
• Climate impact oversight and
scenarios
• Risks and opportunities related to
tightening emissions regulation
Responsible business
• Financial responsibility ensuring
competitiveness and profitability
• Anti-corruption and fair compe-
tition practices
• Responsible sales
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Professional, healthy and committed
personnel are the foundation of Glas-
ton’s success. We ensure the continuous
development of the skills of personnel by
providing an inspiring work environment
in which each Glastonian with their abil-
ities and needs is known. We succeed
together with our personnel.
We empower our employees to thrive
Sustainability targets:
• Employee engagement rate over 75
(0–100)
• No workplace harassment
• Accident frequency zero
Key priorities for the strategy period:
• We are an equal employer that values
diversity
• Our management culture strengthens
success together
• We encourage skills development
• We enable career advancement
• We attend to well-being and safety at work
Glaston Annual Review 2022 21
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Glaston’s personnel
During 2022, the number of Glaston
personnel developed moderately and
in accordance with the strategy, and
there were 783 (750) Glaston employ-
ees at the end of the year. At the end
of 2022, Glaston had operations in nine
countries, of which the three largest,
by employee numbers, were Ger-
many, Finland and China. Employee
turnover in 2022 was 6.0% in Germany,
7.8% in Finland and 7.7% in Switzer-
land. Most employment relationships
are permanent. The average age of
personnel is 44.5 years.
Of Glaston’s personnel, 85% are
men and 15% are women. At the end
of 2022, there were five men and two
women on Glaston’s Board of Direc-
tors, and three of the nine members
of the company’s Executive Manage-
ment Group were women.
Together, towards success
Empowering Glaston people to thrive
is one of the cornerstone initiatives
of our strategy. Important factors
in achieving success are leadership
development, a work culture that
values equality and diversity, encour-
aging Glaston employees to further
develop their competence, support-
ing various career paths, remunera-
Empowering Glaston people to thrive is one of
the cornerstone initiatives of Glaston’s strategy.
What does this mean in practice, SVP People &
Culture Hannele Anonen?
We are constantly developing Glaston’s
organizational culture. It is important to us that
every Glastonian is in a role where they can
harness and develop their expertise. At the
same time, we make every effort to ensure that
we have sufficient competence for current and,
moreover, future tasks in our organization.
At the beginning of 2022, we asked our
personnel how they perceived Glaston as an
employer. The answers enable us to better
understand our strengths and where we can
improve. We really want to listen, not just ask.
The experiences shared by Glaston’s employ-
ees therefore serve as an important starting
point in developing a common organizational
culture, and we have already taken action with
regard to identified development targets.
We have begun to systematically map the future factors that we need to
secure our success. At the same time, we are positively challenging our-
selves to identify younger talent who we can help grow into strategic roles.
We also want to hear and better understand the individual needs of Glas-
ton employees so that we can offer properly targeted measures to support
the success of our personnel and customers. Our goal is to enable a culture
where every Glastonian can shine.
As part of building a
common culture, I
consider it extremely
important that we lis-
ten carefully and get to
know each other even
better.”
We listen, and we know each other
Glaston Annual Review 2022 22
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
<20 Germany
20–29 Finland
30–39 China
40–49 Switzerland
50–59 North
America
60>
Rest of EMEA
APAC
(Singapore)
19
50 100 150 200 250 300
Employee age distribution (FTE) Employees by country or region (FTE)
Employees by type of employment
Gender distribution
Personnel per function
101
192
219
222
64
White-collar ....................................71%
Blue-collar ..................................... 29%
Male .................................................... 85%
Female .............................................. 15%
Insulating Glass Technologies ....33%
Heat Treatment Technologies ....25%
Automotive & Display
Technologies ............................................6%
Services ......................................................21%
Administration, group functions
.....9%
Sales ...............................................................5%
tion that is incentivizing, and attend-
ing to well-being and safety at work.
The common leadership principles
are the basic pillars of Glaston’s man-
agement, which spell out what good
leadership at Glaston looks like and
what is expected from supervisors.
We have put these leadership princi-
ples, launched in 2021, into practice by
organizing training for supervisors in
which competence has been deep-
ened and leadership experiences
have been shared.
With the aid of the leadership prin-
ciples, we are building common ways
of working and even stronger internal
processes. We also want to know our-
selves and each other better, and we
have implemented team and personal
assessments that help us to better
recognize our differences and utilize
our strengths. By identifying the mod-
els and strengths of their own and their
team’s work personality, our supervi-
sors are also able to more effectively
empower their teams to succeed.
Employer worthy of employee
engagement
Engaged employees play an important
role in achieving strategic goals. One of
the Group-wide non-financial targets
is to raise the employee engagement
rate to over 75 (on a scale of 0–100) by
2025. In early 2022, an employer image
survey was launched to start meas-
uring the current level of employee
engagement. The purpose of the
survey was to ensure that present and
future employer communication is
based on the internal voice of Glaston
employees. Supported by the survey
findings, we ascertained our employ-
ees views of Glaston as an employer
and identified factors that can be used
to develop issues meaningful to Glas-
ton employees.
At the end of 2022, we conducted a
revised One Glaston survey, with which
we measured Glastonians’ engage-
ment with the company. Some 71% of
our personnel responded to the survey,
which was a comprehensive sample
and an excellent improvement on the
previous year. The results showed an
engagement rate of 70 (on a scale of
0–100), which is a good starting point.
Personnel stated they were particularly
satisfied with the meaningfulness of
their work and our inclusive culture as
well as cooperation with colleagues.
There is still room for development in
mutual communication and the giving
of feedback.
The One Glaston survey functions as
part of the development of a culture of
continuous discussion and feedback.
With the aid of a survey, we monitor
723
750
783
790
357
2020
2021
2022
2019
2018
Employees at end of year
Glaston Annual Review 2022 23
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
our success in matters important to
Glaston employees, as well as coping
at work and job satisfaction. The annual
survey also enables us to monitor
the development of issues raised in
employee feedback.
Deep dive into employees’ potential
The average age of Glaston employ-
ees, around 45 years, reveals that
our organization has a lot of valua-
ble expertise accumulated through
experience. Recognition of Glastoni-
ans’ competencies and skills plays an
important role in achieving our stra-
tegic goals. We have therefore turned
our attention to identifying younger
and less experienced employees who
we can support and encourage to
grow into various strategic roles.
During 2022, we launched the Peo-
ple Deep Dive discussion processes,
in which business managers and local
HR business partners participated, in
addition to Glaston’s CEO and SVP,
People & Culture. The goal of the Peo-
ple Deep Dive processes is to better
identify both the organization’s capa-
bilities and the kind of resources the
implementation of Glaston’s strategy
requires. Based on them, plans will be
created on how to increase, develop
and engage the necessary expertise.
With the aid of the Deep Dive
discussions, we also wish to identify
rising talents and future experts in key
roles and to ensure the continuity of
our business. Based on the identified
competence needs, we have initiated
local development measures, training
and recruitment.
Skills development and growing in roles
Expert personnel are the foundation
of Glaston’s success, and through
the new strategy we have begun
to identify more systematically the
competencies and skills as well as
the skills development needs of each
Glastonian. In addition, we have dis-
cussed in more detail which areas of
expertise are important in the various
job roles, in order to be able to pro-
vide even better targeted training to
our personnel in the future. We have
also introduced an internal tool that
enables our personnel’s expertise
and knowledge to be accessed more
efficiently.
We organize personnel training in
accordance with local needs, and we
offer training opportunities and con-
tinuous skills development through
work assignments. Our industry is
demanding, and through years of
work many Glastonians have grown
into top experts in their field.
Thanks to Glaston’s internal eSkills
online learning platform, training is
flexibly available online. The eSkills
platform provides training related to
products, processes and operating
practices. Code of Conduct training
is also provided through the plat-
form.
We are developing the eSkills plat-
form, and the goal is to offer during
2023 many more training opportuni-
ties and content on different themes.
We will also develop the online learn-
ing experience based on feedback
provided by our colleagues.
Each year, a performance appraisal
is conducted with all employees in
which they discuss with their super-
visor current issues as well as their
goals and development needs. Based
on the appraisal, personal goals and
a development plan are drawn up for
each employee. Our common leader-
ship principles are an integral part of
the personal development plans of all
Glaston supervisors.
Diverse and inclusive work community
The diversity and equality of person-
nel is important for Glaston’s success.
Glaston is a global company and its
Glaston Annual Review 2022 24
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
personnel have diverse backgrounds
and cultures, which we view as our
strength. Glaston operates in the
technical field, where the gender dis-
tribution has traditionally been strongly
male-dominated. We seek to actively
enrich the diversity of our work com-
munity, both in terms of the gender of
personnel and other individual back-
ground factors.
Our diversity plan, prepared for
2023–2025, states as an objective the
creation of a diverse and inclusive work
environment for employees of differ-
ent background and gender, to enable
Glaston and Glastonians to succeed.
Inclusion, i.e. participation in the
work community, being seen and
heard, and the fact that everyone
can feel safe and express their own
thoughts, is an important component
in ensuring the well-being of Glaston
employees. We are developing our
operating practices and processes
to better take into account possi-
ble unconscious biases associated
with them. For us, participation also
means that we know each other as
well as the skills and strengths of
employees well. This way we can
better involve people in different
projects and roles in which they can
succeed.
Discrimination or harassment of
any kind is not permitted in Glaston;
all reported incidents are investigated
and, if deemed to be well-founded,
the necessary action taken. In 2022,
one suspected incident of work-
place harassment was reported,
which, based on an investigation, led
to the dismissal of the employee in
question.
Workplace in which to thrive
and feel good
We work hard to ensure that we
are an attractive employer where
personnel can thrive, feel good and
develop. The attractiveness of the
glass industry and Glaston can also
be promoted amongst women by
increasing awareness of interesting
work roles and opportunities for
influence and career development.
We have developed our commu-
nication as well as our recruitment
channel, with the aim of presenting
both our personnel and interesting
job vacancies more widely. Through
internal recruitment communica-
tion, we are also seeking to develop
our personnel’s mobility and career
paths from one position to another.
We have celebrated the long
careers of many Glastonians, which
demonstrates to us the engage-
ment of our personnel and the deep
expertise accumulated over the
years. Employment relationships
at Glaston are long, averaging 14.5
years in 2022.
With the shift to teleworking and
hybrid working, we have sought to
ensure our employees’ coping in
work and physical condition. For
example, in Finland, Glaston offers
its personnel the opportunity to
develop mental well-being, joint
hobby sessions and exercise ben-
efits as well as the option of using a
company bicycle.
All of Glaston’s personnel is
covered by a performance bonus
scheme based on the company’s
financial performance. In addition,
we reward good work performance
that supports the achievement of
the strategic goals through the Glas-
ton Way awards.
Continuous development of
safety culture
Occupational safety is high on our
agenda and we have set a Group-
wide occupational safety target of
zero lost time accidents. In order
to develop a safety culture, safety
standards as well as the reporting of
accidents and near misses have been
developed and harmonized through-
out the Group. Through improved
reporting, we are also able to react
better than before to the resourcing
of personnel during absences.
Alongside reporting and standards,
a safety culture is also built on com-
mon safety awareness, anticipation,
and the identification of near-miss
situations. Listening and learning from
others are therefore vital in develop-
ing a safe work culture. In 2022, there
were six accidents, after which an
open discussion took place on what
happened and on the various meas-
ures that may help prevent similar
accidents in the future.
The development and manage-
ment of safety at Glaston is the
responsibility of a steering group con-
sisting of representatives of different
functions and locations that closely
monitors the development of indica-
tors that measure occupational safety.
The day-to-day management and
The diversity
and inclusion of
personnel is impor-
tant for Glaston’s
success.
Glaston Annual Review 2022 25
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Glaston’s first global Safety Week was
held in May. The week was opened by our
CEO, Anders Dahlblom, who emphasized
the importance of a safe work environ-
ment both on our own premises and
when working at customers’ locations.
During the Safety Week, we got the
opportunity to hear and learn about the
safety and health work of our colleagues
around the world. We watched fire and
evacuation exercise videos, learned
about ergonomic office work, and our
Chinese colleagues shared a report on
their first aid training. We also discussed
an accident that had happened pre-
viously as well as measures that could
prevent similar accidents in the future.
Various presentations reminded
participants of, among other things, the
importance of checking work equipment
and materials, the use of safety devices
and safety instructions, and a checklist to
review before starting work. We also learned about the improved safety features of our own products.
SVP People & Culture Hannele Anonen reminded us that a safe work culture also means a sense of mental
safety – that everyone considers themselves to be heard and seen as part of the work community. In addition,
she emphasized the importance of a good balance between work and family life.
The first Safety Week was highly educational and thought-provoking. In the words of Anders, our CEO, safety is
about caring, awareness and thinking before acting.
development of occupational safety
is the responsibility of the company’s
various units, and occupational safety
issues are discussed in local occupa-
tional safety committees. Occupa-
tional safety reviews are conducted
every three months and, based on
them, necessary development meas-
ures are agreed upon.
At all of Glaston’s assembly and
production units, fire and evacuation
exercises and occupational safety
training are organized regularly, and
attention is also paid to the ergonom-
ics of work.
Glaston’s employees also work on
customers’ premises in product instal-
lation, maintenance and familiarization
tasks. Particularly when working on
premises other than Glaston’s own, it
is important to be able to build a safe
work environment even before start-
ing work, in order to minimize possible
risks and avoid accidents.
Our target is zero accidents at
work. We did not achieve this target; in
2022, there was a total of six lost-time
accidents at work or on a business
trip, and the accident frequency was
3.9 (3.3 in 2021). The most typical acci-
dents are hand injuries, such as cuts
and various sprains.
Lessons and experiences from Safety Week
Glaston Annual Review 2022 26
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Energy efficiency as an opportunity
Glaston views the promotion of
sustainable development as a busi-
ness opportunity, and the company is
involved in creating industry standards
and practices in relation to sustainabil-
ity, such as for energy efficiency and
safety.
In glass industry sustainability
issues, there is an emphasis on the
energy efficiency of glass manufac-
turing and further processing, as glass
The architectural and construction
industry is Glaston’s largest customer
segment. The positive climate impact of
the glass installed in buildings is there-
fore highly important from Glaston’s
perspective.
Loss through windows accounts for
25–30% of the energy used for heating
and cooling buildings. The energy-saving
potential is enormous, because in the EU
area, for example, most of the glazing of buildings is less energy-efficient.
If, for example, the glazing of buildings in Europe were replaced
by energy-efficient alternatives, the energy consumption and
carbon dioxide emissions of buildings would be approximately 30%
lower by 2030*.
The goal of the Renovation Wave Strategy, published by the Euro-
pean Commission in 2020, is to at least double the number of ren-
ovations by 2030 and to ensure that they lead to better energy and
resource efficiency. The goal applies to around 35 million buildings.
The project will be a significant driver of growth for Glaston’s busi-
ness, as coated double and triple insulating energy-saving glass pro-
duced with Glaston’s technologies are key solutions in energy saving
for windows and glass façades.
Sustainability targets:
• Glaston’s CO
2
emissions
(Scope 1+2) in relation to net
sales down by 50% from the
2020 level
Key priorities for the strategy
period:
• Drive down Scope 1 & 2 C0
2
emissions
• Calculate Scope 3 emissions
and set new targets
• Build roadmap for reducing
Scope 3 emissions
• Evaluate the Science Based
Targets initiative
production processes consume a lot
of energy. The energy crisis, the sharp
rise in energy prices and availability
concerns have strongly impacted the
European glass industry, which is an
energy-intensive industrial sector and
traditionally dependent on natural
gas. On the other hand, energy-re-
lated risks could drive demand for
energy-saving and renewable energy
production solutions.
Glaston’s largest customer seg-
ment is the architectural and con-
struction industry. In parallel with the
energy crisis, programs promoting
carbon neutrality, as well as stricter
legislation and new standards, are
supporting the use and development
of more energy-efficient solutions.
Safety and quality regulations in con-
struction are also becoming stricter in
many of Glaston’s market areas.
Glass will play a key role in achiev-
ing the energy efficiency targets for
buildings in both new and renova-
tion construction. For example, 75%
of the EU’s building stock is energy
inefficient*, and heating and cool-
ing of buildings account for half of
final energy consumption in the EU.
* Source: Glass for Europe/ Potential impact of high-performance glazing on energy
and CO
2
savings in Europe, TNO, 2019
Energy saving with insulating glass
* Directive of the European Parliament and of the Council on energy efficiency, 2021
Glaston Annual Review 2022 27
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Improving the insulation of buildings
is therefore of great importance. The
technologies developed by Glaston
enable the production of more
energy-efficient glass structures.
Energy-efcient
technology
The most significant environmental
impacts of Glaston’s operations are
mainly associated with the use of the
machines sold, particularly the elec-
tricity consumption of heat treatment
machines. Through automation and
continuous technological develop-
ment, it is now possible to efficiently
optimize the electricity consump-
tion of machines in both heating and
cooling. The new technology is also
available as upgrade products for old
production lines.
The development of energy- and
material-efficiency is ongoing work,
and Glaston’s product development
has long focused on improving the
energy efficiency of its machines.
The company has managed to
reduce significantly the energy con-
sumption of its most significant prod-
ucts. For example, in the tempering
process of coated energy-saving
glass, energy consumption has been
reduced by around 30% over the last
decade. Particularly in heat treatment
technologies, the savings in heating
brought by circulating air convection
in tempering and the enhanced con-
trol of blowers used in cooling have
played a significant role in improving
energy efficiency per square metre
of tempered glass. The electricity
consumption of glass pre-processing
machines as well as machines used in
manufacturing insulating glass units
can be impacted, for example, by
various product options that improve
the energy efficiency of production
lines.
In product development, Glaston
harnesses new technology and the
opportunities created by digitalization
through, among other things, utilizing
data received from machines. With
the aid of automation, cloud services
and the industrial internet, the com-
pany helps its customers to use their
machines as efficiently as possible.
A real-time quality measurement sys-
tem detects deviations in the quality of
processed glass immediately, thereby
minimizing material waste.
Glaston’s impacts on the
environment
In its own activities, Glaston’s most
significant environmental impacts arise
from energy consumption and related
emissions as well as from waste and
transportation. In the use of machines,
the main environmental aspect is the
energy consumption of the machines,
which we are actively reducing through
product development, innovation and
customer guidance and advice.
At Glaston’s assembly and produc-
tion units, the company operates in
accordance with the ISO 9001 quality
management system. In Finland, Glas-
ton manages and controls environ-
mental issues linked to production in
accordance with a certified ISO 14001
environmental management system.
On its premises, Glaston conducts
regular energy audits, and is constantly
improving the energy-efficiency of its
properties. For example in Tampere,
Finland, oil consumption and resultant
emissions were significantly reduced
when heat pumps were installed,
replacing oil as a heating source.
Transport of machines to custom-
ers is handled by forwarding com-
panies using the shortest routes by
land or sea. Transport of smaller and
urgent spare parts is also handled by
air freight.
Reducing emissions from own
operations
Emissions from Glaston’s own opera-
tions totaled 1,491 tCO
2
in 2022 (2,608
tCO
2
in 2021), of which fuels and natural
gas (Scope 1) account for around 41%
and electricity and district heat (Scope
2) for around 59%.
Scope 2 emissions, from purchas-
ed energy, declined significantly
when, from the beginning of 2022,
the Tampere, Finland and Neuhausen,
Germany factories switched to using
electricity produced from renewable
energy. In the Swiss production unit
in Bützberg, where renewable energy
has been the main source of electricity
for a long time, it was also decided to
renew the heating distribution system.
This significantly reduces consumption
of natural gas. In addition, a solar power
system was installed in Bützberg. In
Neuhausen, charging points for elec-
tric cars were installed in the parking
area of the premises. In Germany and
Finland, hybrid and electric vehicles are
offered as company cars.
One of the Glaston Group’s four
non-financial targets is to halve the
intensity of CO
2
emissions from the
company’s own operations by 2025.
A brisk start was made along the path
towards the target, particularly through
the switch to electricity produced from
renewable energy. Relative to net sales,
Glaston’s Scope 1 and 2 emissions (7.0
tCO
2
/EUR million) have decreased by
57% compared to the baseline in 2020
(16.3 tCO
2
/EUR million).
The goal of emission reductions will
be refined during 2023.
Glaston Annual Review 2022 28
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
In Bützberg, Switzerland, we invested in our own solar power system.
Nearly 400 solar panels, with a total capacity of more than 150 kWp, were
installed on the roof of the factory in autumn 2022.
The solar panels have produced energy for the production plant’s own
use since November, and from the beginning of December electricity has
also been fed into the grid.
Scope 3 emissions calcu-
lated for the rst time
Scope 3 emissions arising from Glas-
ton’s value chain were calculated for
the first time during 2022. The calcu-
lation, based on 2021 data, showed
that the majority, around 99%, of all
emissions associated with Glaston’s
activities arise in the company’s value
chain. The most significant sources of
emissions are the electricity con-
2022 2021 2020
Fuel oil, diesel and natural gas 2,852 3,349 3,179
Purchased electricity and heat 6,523 6,746 7,949
Total 9,375 10,095 11,128
2022 2021 2020
Scope 1 (Fuel oil, diesel and natural gas)
1
605 708 678
Scope 2 (Purchased electricity, heat and
cooling)
1, 2
886 1,900 2,099
Scope 1 & 2 total 1,491 2,608 2,777
Scope 3 (value chain) tba 287,348 -
Energy consumption (MWh)
Greenhouse gas emissions (tCO
2
e)
1
tCO
2
2
Calculation mainly based on actual energy consumption; consumption of individual
premises is based on an estimate
Solar power in Bützberg
sumption of machines manufactured
by Glaston and the procurement of
materials and components required
for their manufacture.
The results obtained form the
basis for future work, and they can
be used to identify the measures by
which emission reductions will best be
achieved. The aim is also to constantly
improve the accuracy and validity of
emission calculations.
Scope 3 emissions by category 2021
Purchased goods and services .. 15%
Use of sold products .........................84%
Other categories ..................................... 1%
Estimated breakdown of Glaston’s
greenhouse gas emissions 2021
Sope 1 + 2 ......................................................1%
Scope 3......................................................99%
Glaston Annual Review 2022 29
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Recycling of packaging materials
and waste
The primary aim is to prevent the
generation of waste. The goal is to
minimize the amount of waste, and
particularly the amount that ends up
other than in final disposal. Glaston’s
operations give rise to a lot of pack-
aging materials, and they are sorted
and either recycled or used as energy
waste. In 2022, the total amount of
waste decreased by around 10%.
Waste disposal 2022
Recycling and energy ............ 94%
Landfill .................................................6%
16.3
14.3
7.0
8.2
Finland
Germany
China
Switzerland
2020
2021
2022
2019
Waste by country,
tonnes
400
452
447
Target 2025
2021
2022
2020
Greenhouse gas emissions to net sales
(tCO
2
)/EUR million)
405
Glaston Annual Review 2022 30
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Generating economic value added
Sustainable value creation requires
motivated and healthy employees,
competitive products and solutions,
and satisfied customers. Sustainable
operations facilitate Glaston’s ability to
fulfill its financial obligations towards
its key stakeholders.
Personnel salaries, payments to
goods and service providers, social
taxes, and potential dividends and
returns of capital to shareholders are
Glaston’s most important obligations,
as are the means to create economic
value added.
In 2022, Glaston Group’s net sales
totaled EUR 213.5 million, of which
service operations accounted for 36%.
Glaston acquired materials, prod-
ucts and services totaling EUR 138.0
million. Glaston had an average of
775 employees in 2022. Salaries and
bonuses paid to personnel totaled
EUR 54.7 million and pension expenses
EUR 4.2 million The company’s invest-
ments in tangible and intangible
assets totaled EUR 7.7 million.
Responsible business
2022 2021 2020
Value added generated
Customers Net sales 213.5 182.7 170.1
Other operating income 3.6 4.3 2.3
Value added distributed
Suppliers Purchased goods, materials and services 138.0 116.1 94.8
Employees Salaries, bonuses and social expenses 54.7 48.6 44.9
Employees Pensions paid 4.2 3.6 3.2
Financiers Financial expenses 2.2 1.7 2.3
Owners Dividend/return of capital 3.4 2.5 1.7
Public sector Taxes 0.7 1 0.9
Business development R&D, investments 7.7 6.5 5.8
Value added generated and distributed (EUR million)
Glaston Annual Review 2022 31
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
New tax policy
In December 2022, Glaston’s
Board of Directors approved
the company’s new tax policy,
which sets out the compa-
ny’s tax strategy and forms
the general framework for
Glaston’s tax administration,
internal responsibilities and
risk management as well as
key measures and audits. The
principles of the tax policy also
apply to Glaston’s external
service providers.
Glaston does not engage
in aggressive tax planning
nor artificial transactions or
structures whose purpose is
to produce a tax advantage.
Glaston Group companies are
located solely for business rea-
sons. Responsible tax planning
and the utilization of legal tax
advantages and incentives are,
however, acceptable when
related to commercial activi-
ties.
Value added generated and distributed
Net sales from
customers
213.5
€ Million
Materials
-97.9
€ Million
Subcontracting
and maintetance
-5.6
€ Million
Freight expenses
-6.7
€ Million
Electricity, heating
-1.2
€ Million
Other expenses
-26.6
€ Million
Salaries, bonuses and
social expenses
-54.7
€ Million
Purchased goods,
materials and services
-138.0
€ Million
Financial
expenses
-2.2
€ Million
R&D,
investments
-7.7
€ Million
Dividend/return of
capital
-3.4
€ Million
Taxes
-0.7
€ Million
Pensions
-4.2
€ Million
Glaston Annual Review 2022 32
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Responsible
sourcing
Suppliers
• Supplier requirements, assess-
ments and audits
• Human rights and workplace
safety in the supply chain
• Anti-corruption in the supply
chain and sourcing
• Environmental issues in the
supply chain
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Developing sustainable sourcing
In its Code of Conduct, Glaston
undertakes to promote fair compe-
tition, act fairly towards its suppliers,
service providers and subcontractors,
and respect human rights in all of its
activities.
Suppliers of goods and services
play an important role in Glaston’s
value chain. Most of Glaston’s approx-
imately 2,000 active subcontractors
operate in Europe, where the compa-
ny’s largest assembly and production
Fair and honest business
units are located. Glaston’s factories
in Finland, Switzerland and China
assemble machines, while its factory
in Germany manufactures machines.
Most, around 90%, of Glaston’s
purchases come from the EMEA area,
with the remainder coming from,
among other places, Asia and the
USA. The most significant materials
purchased for machine manufactur-
ing include steel structures, electrical
and automation components, power
centers and process blowers.
Supply chain disruptions related
to the prices and availability of raw
materials and components, as well as
the availability and costs of logistics,
adversely impacted Glaston's busi-
ness during 2022.
One of Glaston’s strategic corner-
stone initiatives is Master global sourc-
ing and manufacturing, the objective
of which is to improve operational
efficiency through more harmonized
sourcing and manufacturing pro-
cesses. In this work, an important ele-
ment is responsible sourcing, which
includes, among other things, supplier
requirements and audits as well as
safeguarding human rights and work-
Sustainability targets:
• Main suppliers’ commitment
to Glaston’s Code of Conduct
100%
Key priorities for the strategy
period:
• Define supplier audit model
and start audits
• Supplier Code of Conduct
implementation
• Scope 3 reduction actions
towards suppliers
Glaston Annual Review 2022 34
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
place safety. In addition, anti-corrup-
tion in the supply chain and sourcing is
systematically developed.
In 2020, Glaston published a sepa-
rate code of conduct for its suppliers
(Glaston Supplier Code of Conduct),
to which the company requires its
suppliers to commit. The Glaston Sup-
plier Code of Conduct is published in
Finnish, English, German and Chinese
and is available on the company’s
website. The Supplier Code of Con-
duct was implemented in 2022, and
during the year approximately 75% of
main suppliers committed to it. The
Code of Conduct has been incorpo-
rated into purchase agreements, so in
the future all Glaston suppliers will be
required to commit to it.
Major suppliers are regularly audited
by Glaston’s quality and purchasing
organizations, and all new suppliers
undergo an audit process prior to
being approved. Glaston’s supplier
audit model was developed during
2022. As a new element in audits, the
responsibility of suppliers and due dil-
igence assessment related to human
rights are also taken into account, in
addition to quality, price and security
of supply.
The revised audit model will be
introduced in 2023, and the effective-
ness of the model will be monitored
and, if necessary, further developed.
The aim of the revision is not only to
take responsibility better into account,
but also to harmonize the supplier
audit method used in all Glaston’s
operating countries as well as the
documentation of data.
Glaston selects its suppliers
carefully, and seeks long-term, good
relationships with its most important
suppliers. In this way, the company
ensures that its partners understand
and comply with its requirements, in
relation to both processes and prod-
ucts. Glaston accepts as its suppliers
only companies that are not subject
to sanctions of any kind and have not
committed any regulatory offences.
Fair business starts with own activities
In its everyday activities, Glaston is
committed to combating bribery
and corruption, which can occur in
both sourcing and sales. Glaston’s
anti-bribery and anti-corruption
policy clearly sets out the company's
approach and increases our employ-
ees’ awareness of the risk of corrupt
payments, unequivocally prohibits the
payment and receipt of bribes, and
ensures that the company conducts
business in accordance with fair
ground rules.
Glaston takes competition rules very
seriously and every employee must
act in accordance with them. Glaston
complies internationally with EU com-
petition legislation, while also taking
into account all stricter local rules.
Glaston regularly arranges training
for its personnel on fair business and
competition issues. In addition, the
training materials are always available
on the company’s intranet. In 2023,
separate anti-bribery and anti-cor-
ruption training will be launched, and
targeted at employees whose work-
ing tasks are closely associated with
the topic.
Any violations or suspicions of
improper activity or payments can be
reported anonymously via Glaston’s
whistleblowing channel.
Glaston Annual Review 2022 35
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Responsible
partner
Customer
• User experience and customer
satisfaction
Products & Services
• Machine quality, reliability and
longevity, life-cycle management
• Safe operation of machines and
user training for customers
• Digitalization and automation
• Information security
• Energy and material efficiency
targeting circular economy
• End product quality, safety and
recyclability
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
At the heart of Glaston’s strategy and
values is success with its customers.
We are constantly developing our
operating practices, which increase
the value received by customers and
improve the customer experience.
One of Glaston’s strategic cor-
nerstone initiatives is Innovate with
customers to win, which focuses on
understanding customers’ needs and
Market’s best customer experience
Sustainability targets:
• Industry’s best customer
experience, NPS over 40
Key priorities for the strategy
period:
• Business strategy: product
offering development & cus-
tomer experience, digitaliza-
tion & automation
• Sustainability integrated into
offering development
• Machine energy- and material
-efficiency targeting circular
economy
• LCA and circularity assessment
of selected products
its seamless integration with our inno-
vation and development work.
As the operating environment
changes, customers’ requirements
and expectations of Glaston increase.
Higher quality and more versatile
features are continually required from
customers’ end products. Glaston’s
processing machines must be able
to produce larger, more uniform and
thinner glass surfaces. Production
must also be able to adapt flexibly
to making different types of glass.
Glaston develops technologies and
solutions that meet these changing
Customer support throughout the life cycle
Glaston invests in the development of
digital services. Connecting machines
to the Glaston Insight cloud service
facilitates for the customer real-time
support in the event of disruptions with
no delays
We engineer our products and
services for sustainable use through
high quality materials and leading
process designs
We provide training to our
customers securing improved
glass quality and production
efficiency with minimized
waste
In spare parts, we focus on quality,
durability and availability through
regional delivery centers, reducing lead
times and the adverse environmental
impact of transports
Modernizing a machine with new
technology extends its life cycle and
reduces energy consumption in glass
processing. We offer digital services to
improve productivity
Our remote monitoring and support with
predictive and preventative maintenance allows
shutdown planning and reduces unplanned
repairs for high end product quality and overall
equipment efficiencies
Engineered for
sustainability
The goal of life cycle
services is safe and

machines
Spare parts &
consumables
Maintenance
services
New machines
and equipment
Modernization
products and
upgrades
Glaston Annual Review 2022 37
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
customer needs, and product devel-
opment is often done in partnership
with customers.
One of Glaston’s non-financial
targets is related to customer satis-
faction. The target is that customers’
recommendation rate (Net Promoter
Score, NPS) is above 40 by 2025. NPS
was measured for the first time com-
pany-wide during 2022. Glaston’s cus-
tomer satisfaction survey is sent for
delivered machine projects and it asks
the customer to evaluate the success
of the project and the customer’s
willingness to recommend Glaston.
The customer recommendation rate
(NPS) in 2022 was 53.
Safe use and customer support
throughout the life cycle
Glass processing machines are long-
term investments for their owners as,
depending on the machine, they can
have decades-long operating lives.
Glaston’s machines are designed
to withstand constant use at high
utilization rates, and the company
interacts closely with customers, as
the machines are regularly serviced to
achieve consistent performance.
Glaston’s production and assembly
processes and installation methods
are designed to promote product reli-
ability as well as the safety of installers
How can we reduce energy consumption? This is what
almost all glass processors were asking in 2022. At Glas-
ton, we help our customers save energy in numerous
ways.
Glass tempering is one of the most important pro-
cesses in a glass processing factory; it helps increase
end-product safety, strength and durability. The tem-
pering process, in which the glass is heated to +600°C
and then cooled back down to room temperature,
consumes a lot of electricity. The most significant
energy-saving potential in a glass processing plant is
therefore often to be found in the tempering line. For
example, automatically adjusting flat tempering con-
vection technology reduces waste energy. Particularly
with thinner glass, new blower technology significantly
reduces electricity consumption.
Modernizing older tempering lines with new technol-
ogy is an effective way to reduce electricity consumption.
In laminating, Glaston’s new convection-based
technology delivers the most energy-efficient glass
processing on the market. Many traditional technologies
allow heat to escape from the furnace, which wastes
energy.
Energy efficiency can also be improved with the aid of digital reporting and real-time production monitoring,
allowing glass processors to see more precisely where electricity is being consumed and how they can opti-
mize the operation of the machines.
Modernizing furnaces is also an effective way to reduce electricity consumption. Any laminating line can be
modernized, regardless of the original manufacturer.
Product development and services for energy saving
Glaston Annual Review 2022 38
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
and customers. All Glaston machines
manufactured in Europe comply with
the EU Machinery Directive. The Direc-
tive requires manufacturers to carry
out, among other things, a risk analysis
of the machine, describing possible
risks to personnel during the various
stages of use of the machine.
Glaston has a total of approximately
4,000 installed and operating machine
lines. In accordance with its life cycle
model, Glaston has been actively
developing its maintenance services,
as regular service intervals increase
product life and safety. Glaston has
over 100 different upgrade prod-
ucts for different machine models.
Modernizing a machine with new
technology extends its operating life,
improves end product quality and
production process efficiency, and
reduces energy consumption in glass
processing.
Remote monitoring and support
based on proactive and preventive
maintenance enable outage planning
and reduce unplanned repairs. We
also offer our customers training and
support as well as digital services to
improve productivity and glass quality.
Connecting machines to the Glas-
ton Insight cloud service enables the
customer to monitor and report on
production in real time, and provides
rapid customer support in the event
of disruptions.
Developer of demanding products
Glaston is the frontrunner in the glass
industry, and is known for its high qual-
ity. The company’s position is particu-
larly strong as a developer of the most
technologically demanding products.
The company carries out product
development in close cooperation
with its customers and partners, such
as research institutes, universities and
other higher education institutions.
At the forefront of Glaston’s product
development are projects and inno-
vations related to automation, ease
of use and self-learning that facilitate
the transition towards fully automated
glass processing.
One of our latest innovations is the
tempering process Autopilot, which is
based on the same solutions that are
used in autonomous passenger cars.
Autopilot presages a huge change for
the entire glass processing industry,
as it minimizes the need for machine
operator input and offers process
control without parameters.
Through automation, we help our
customers to produce higher quality
glass continuously at a higher uti-
lization rate. New solutions include
Glaston’s automated stress calcula-
tion solution in the glass tempering
process as well as a scanner that uses
artificial intelligence to automatically
detect white haze on processed
glass. In addition to efficiency and
reliability, optimization also improves
energy and material consumption and
reduces wastage.
Importance of information security and
protection is growing
As a result of the increased role of vari-
ous cloud services and IoT, the impor-
tance of information security and
protection has grown significantly for
companies. The impact on business
of potential data breaches has been
recognized and Glaston pays particu-
lar attention to managing information
security risks with regard to data con-
nections between the company and
its customers.
Information security practices and
responsibilities are guided by Glaston’s
information security policy. Informa-
tion security is regularly monitored
and audited, and Glaston’s Executive
Management Group and the Board of
Directors’ Audit Committee regularly
review information security issues as
well as plans and measures to manage
risks.
The company has a SOC (Security
Operations Center) service, which
enables continuous network monitor-
ing. In 2022, no significant information
security incidents were reported. Glas-
ton’s partners and subcontractors are
also required to adhere to the compa-
ny's information security guidelines.
Glaston's
position is par-
ticularly strong
as a developer of
technologically
demanding
products
Glaston Annual Review 2022 39
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Responsible
member of
society
Sustainable tomorrow
• Indirect impacts on energy-
efficient cities and societies
• Indirect energy and emission
reductions
• Indirect material reductions
• Sustainable end-product
applications
• Development of the industry,
research cooperation
• Contributing to the decarboniza-
tion of societies
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Technology leader,
developing the glass
industry
Glaston is actively and diversely
involved in developing its industry. We
promote the development of both the
industry and its technologies in our
operations and with our partners. One
of Glaston’s five strategic cornerstone
Technology leader, developing the
glass industry
initiatives is Lead digital transforma-
tion, which includes building digital
tools and infrastructure across all
Glaston operations to lead the indus-
try’s digital transformation.
Glaston participates in the activities
of the following international glass
industry organizations:
• International Commission of Glass
(ICG)
• NGA/GANA in the USA
• China Glass Association in China
• Verband Deutscher Maschinen- und
Anlagenbau glass technology forum
in Germany
• Flat glass associations in Germany
and Finland, and other local flat glass
associations
In addition, Glaston is an active
member, authorized by the Finnish
national working group, in glass indus-
try committees of CEN (European
Committee for Standardization) and
in ISO’s (International Organization
for Standardization) working groups
preparing safety glass (tempered and
laminated glass) standards. Via these,
we are able influence the creation
of industry standards and commu-
nicate through practical experience
the needs and requirements that the
standards should cover.
Glaston works closely with various
research institutes and higher educa-
tion institutions. Key partners include
VTT Technical Research Center of Fin-
land, the University of Tampere, Busi-
ness Finland, the Fraunhofer Institutes
in Germany, and universities in Swit-
zerland. The company also actively
offers summer, graduate thesis and
trainee job positions to talent of the
future. In Germany, the company has
its own apprenticeship program. In
addition, Glaston’s conducts develop-
ment and engineering projects in new
glass technologies.
The Glass Performance Days (GDP)
conferences, organized by Glaston,
are among the sector’s most pres-
tigious events and bring together the
entire glass industry, from research-
ers, architects and designers to glass
producers, processors, equipment
suppliers and end users.
The conferences aim to dissem-
inate the latest information among
industry actors and to promote the
development of new areas of appli-
cation and technological features.
The GPD conferences have been
organized at two-year intervals since
1992, except for 2021 when, due to
the COVID-19 pandemic, the confer-
ence was not held. Over the years,
the GDPs have attracted more than
16,000 glass industry professionals.
In spring 2022, Theme Park by GDP
gathered the GPD audience around
once a month for webinars on current
glass industry topics, discussion and
networking.
An important part of the GPD
conferences organized in Finland is
the Step Change program, which is a
meeting place for startup companies
and the glass industry. The goal of the
Step Change program, to be organ-
ized for the third time in summer 2023,
is to introduce and bring together
new technologies, research teams
and startups to develop the entire
glass industry. The program aims to
promote the commercialization and
utilization of new innovations through-
out the glass value chain.
Key priorities for the strategy
period:
• Glass Performance Days to
promote the theme of energy-
efficient cities and socie-
ties and enhance industry
dialogue
• Contributing to improving
GHG data accuracy in glass
processing
• Building thought leadership in
glass related emissions
• Stakeholder analysis on their
alignment with Glaston’s
targets
• Start-up and research
co-operation
Glaston Annual Review 2022 41
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
In 2022, ACI invested EUR 770,000 in
UNICEF’s Global Education Program,
which supports millions of children
to succeed in life. This year, we also
sought to support UNICEF’s invalua-
ble work in Ukraine. The companies,
employees, foundations and share-
holders of Ahlström Collective Impact
collected nearly EUR 300,000 for the
children of Ukraine.
ACI cooperation is strongly aligned
with Glaston’s value Together we
One million
euros for
children’s
future
AHLSTRÖM COLLECTIVE IMPACT
Glaston is participating in the Ahl-
ström Collective Impact (ACI) respon-
sibility initiative, which supports the
realization of selected UN sustainable
development goals. ACI involves col-
laboration between Ahlström network
companies and UNICEF Finland, with
the aim of improving the lives of
children worldwide.
build the future. Providing access to
education and equal opportunities is
an ongoing effort that we also want to
support in the future. By joining forces
with the Ahlström Network compa-
nies, we can contribute to a better
future for children.
In 2022, in addition to Glaston, the ACI network
consisted of Antti Ahlström Perilliset, Ahlström
Capital, Ahlström Invest, Ahlstrom, Destia,
Detection Technology, Enics, Suominen, Avain
Yhtiöt, M&J Recycling, Eva Ahlström Founda-
tion and Walter Ahlström Foundation.
Glaston Annual Review 2022 42
Glaston 2022
SUSTAINABILITY
Governance
Financial Review
Governance
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
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 and guide-
lines of Nasdaq Helsinki Ltd. In addi-
tion, Glaston complies with the Finnish
Corporate Governance Code 2020
(also the “Corporate Governance
Code”), which is publicly available at:
www.cgfinland.fi.
Corporate Governance Statement 2022
This statement has been approved
by the Company’s Board of Directors
(also the “Board”). The Corporate Gov-
ernance Statement is issued as a sepa-
rate report and is published together
with the financial statements, the
Report of the Board of Directors and
the Remuneration Report on the Com-
pany’s website at: https://glaston.net/
governance/. The information is also
included in the Annual Review 2022.
Duties and Responsibilities of
Governing Bodies
The General Meeting of Sharehold-
ers, the Board of Directors and the
President & CEO, whose duties are
determined mainly in accordance
with the Finnish Companies Act, are
responsible for the management of
Glaston Group. The General Meeting
of Shareholders elects the Board of
Directors and the Auditors. The Board
of Directors appoints the President &
CEO, who is responsible for the Com-
pany’s daily operational management.
The President & CEO is supported by
the Executive Management Group.
Board of Directors
The Board of Directors is responsible
for the appropriate arrangement of
the Company's administration and
operations. The Board of Directors
consists of minimum of five and a
maximum of nine members elected
by a General Meeting of Shareholders.
The term of office of Members of the
Board of Directors expires at the end
of the next Annual General Meeting
that follows their election.
Under Recommendation 10 of
the Corporate Governance Code, a
majority of Members of the Board of
Directors shall be independent of the
Company, and at least two Members
who are independent of the Company
shall also be independent of the Com-
pany’s significant shareholders. The
Nomination Board prepares proposals
on the nomination and remuneration
of Members of the Board of Directors
to be dealt with by a General Meeting
of Shareholders. In the selection of
members, attention shall be paid to
the diversity of the Board of Directors,
which means, among other things,
that the members’ experience and
competence in the Company’s field of
business and development stage are
mutually complementary. In addition,
education, age and gender shall be
taken into account. Both genders
must be represented on Glaston’s
Board of Directors.
The notice to attend an Annual
General Meeting shall include a pro-
posal on the composition of the Board
of Directors. The personal information
of the candidates shall be published
Governance Model 31 December 2022
Glaston
Heat
Treatment
Technologies
Glaston
Automotive &
Display
Technologies
GENERAL MEETING OF SHAREHOLDERS
People and Remuneration
Committee
Audit Committee
CEO
EXECUTIVE MANAGEMENT GROUP
Administration, Group Functions
Shareholders
Shareholders'
Nomintation Board
Internal Control
Risk Management
Financial Reporting
BOARD OF DIRECTORS
Auditor
Glaston
Insulating
Glass
Technologies
Glaston Annual Review 2022 44
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
on Glaston’s website in connection
with the notice to attend an Annual
General Meeting.
The Board of Directors shall elect
from among its members a Chair and
a Deputy Chair to serve for one year
at a time. The Board of Directors has a
quorum if more than half of its mem-
bers are present at the meeting.
The Board of Directors’ tasks and
responsibilities are determined 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 Com-
pany 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 imple-
mented. 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 bene-
fits. In addition, the Chair 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 action plans
and monitoring their implementa-
tion, monitoring the Group’s financial
development, acquisitions and the
Group’s operating structure, signifi-
cant capital expenditures, internal
control systems and risk manage-
ment, key organizational 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 man-
agement systems pertaining to the
financial reporting process, monitor-
ing the statutory audit of the financial
statements and consolidated financial
statements, evaluating the independ-
ence of the statutory auditor or audit
firm, particularly with respect to the
provision of services unrelated to
the audit, and preparing a proposal
for resolution on the election of the
auditor. The Board of Directors also
regularly evaluates its own actions and
working practices.
Meetings of the Board of Direc-
tors are held as a rule in Helsinki. The
Board of Directors also endeavors
each year to visit the Group's other
operating locations and hold meet-
ings there. The Board of Directors
may also, if necessary, hold video and
telephone conferences. The Board
of Directors meets according to a
timetable agreed in advance, gen-
erally 7–10 times per year and addi-
tionally, if necessary. The Company’s
President & CEO and Chief Financial
Officer generally attend the meetings
of the Board. The Company’s Gen-
eral Counsel acts as Secretary to the
Board. If necessary, such as in con-
nection with the handling of strategy
or the annual plan, other Members of
the Executive Management Group
may also attend meetings of the
Board. The Auditor attends all Audit
Committee meetings and at least
one Board meeting per year.
Board of Directors in 2022
At the Annual General Meeting, held
on 12 April 2022, the Members of the
Board of Directors Veli-Matti Reinik-
kala, Sebastian Bondestam, Antti Kau-
nonen, Sarlotta Narjus, Arja Talma, Tero
Telaranta and Michael Willome were
re-elected as members of the Board
of Directors. The Board of Directors
was elected for a term of office end-
ing at the closing of the next Annual
General Meeting.
In 2022, Veli-Matti Reinikkala has
served as Chair of the Board, and
Sebastian Bondestam as Deputy
Chair.
In 2022, the Board evaluated its
performance and procedures through
a self-evaluation questionnaire. In the
self-evaluation, the members con-
sidered, among other things diversity
of the Board, the quality of the Board
and committee work and information
sharing between the Board and the
management. The results of the eval-
uation were discussed and analyzed
by the Board and improvement pro-
posals were agreed based on these
discussions.
In 2022, key themes on the Board’s
agenda were the implementation of
the company’s revised strategy for
2021−2025 as well as planning and
follow-up of the strategic initiatives. In
addition, mitigating the impacts of the
supply chain disruptions continued to
be on the agenda.
Glaston Annual Review 2022 45
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Independence of Members of the
Board
According to an independence
assessment performed by the
Company’s Board of Directors, all of
the Members of the Board are inde-
pendent of the Company. Member of
the Board Tero Telaranta is depend-
ent on a significant shareholder of
the Company, Ahlstrom Capital B.V.,
whose ownership was 26.39% on 31
December 2022. As of 25 November
2022, member of the Board Sebastian
Bondestam is dependent on a signif-
icant shareholder of the Company,
Ahlstrom Capital B.V. The Members of
the Board have no conflicts of interest
between the duties they have in the
Company and their private interests.
General Counsel Taina Tirkkonen
served as the secretary to the Board
of Directors.
The CV details of the members of
the Board are available on the com-
pany website. The remuneration of
the Board is described in the Remu-
neration Report 2022.
Glaston Annual Review 2022 46
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Members of the Board of Directors 31 December 2022
Member of the Board Member since Independence Year of birth
Share ownership on
31 December 2022 Education Main occupation
Veli-Matti Reinikkala 2020, Chair of the
Board
Independent of
the company and
significant shareholders
1957 720,558 shares eMBA, Non-
executive
Director
Board Professional
Sebastian
Bondestam
2018, Deputy Chair
of the Board
Independent of the
company, dependent
on a significant
shareholder
1962 51,255 shares M.Sc.(Eng.) Uponor Infra Oy, President;
Uponor Corporation, Deputy
to the CEO
Antti Kaunonen 2018 Independent of
the company and
significant shareholders
1959 148,718 shares D.SC. (Tech.),
MBA
Cargotec Corporation,
President Kalmar Automation
Solutions, retired on 30 June
Sarlotta Narjus 2016 Independent of the
Company and of
significant shareholders
1966 no shares M.Sc.
Architecture
SAFA
SARC Architects Ltd, CEO
Arja Talma 2021 Independent of the
Company and of
significant shareholders
1962 22,713 shares M.Sc. (Econ.),
eMBA
Board Professional
Tero Telaranta 2017 Independent of the
company, dependent
on a significant
shareholder
1971 23,089 shares M.Sc.(Eng.), M.Sc.
(Econ.)
Ahlström Capital, Director,
Industrial Investments
Michael Willome 2020 Independent of the
Company and of
significant shareholders
1966 no shares lic. oec HSG, M.A. Synthomer Plc, Group Chief
Executive Officer
Glaston Annual Review 2022 47
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Board
meetings
Audit
Committee
People and
Remuneration
Committee
Veli-Matti Reinikkala 9/9 5/5
Sebastian Bondestam 9/9 4/4
Antti Kaunonen 9/9 4/4
Sarlotta Narjus 9/9 4/4
Arja Talma 8/9 5/5
Tero Telaranta 9/9 5/5
Michael Willome 9/9 3/4
Meeting attendance of Members of the Board 2022
Meeting attendance of Members of the
Board 2022
In 2022, Glaston’s Board of Directors
convened nine times. The meeting
attendance is reported in the table
above.
Committees of the Board of Directors
Glaston’s Board of Directors has two
committees: the Audit Committee
and the People and Remuneration
Committee. The Board of Directors
appoints the members and chairs of
the committees, taking into account
the expertise and experience required
for the duties of the committees.
The members of the committees are
appointed for the term of office of the
Board of Directors. The committees
are preparatory bodies of the Board
of Directors and do not have their own
decision-making power.
Audit Committee
The Audit Committee assists the
Board of Directors by preparing
matters within the competence of
the Board of Directors. The Commit-
tee reports to the Board of Directors
on matters discussed and measures
taken at least four times a year and
makes proposals to the Board for
decision-making, if necessary.
The Board of Directors specifies
the duties of the Audit Committee in
a charter confirmed by the Board of
Directors. The Audit Committee over-
sees the financial reporting process
and monitors the effectiveness of
internal control, internal audit and risk
management systems. In addition, the
Committee reviews the description
of the main features of the internal
control and risk management systems
associated with the financial reporting
process, monitors the statutory audit
of the financial statements and the
consolidated financial statements,
evaluates the independence of the
statutory audit firm and prepares a
proposal for the election and remu-
neration of the auditor. Other duties
include evaluating compliance with
laws, regulations and corporate prac-
tices, overseeing significant litigation
concerning Group companies, and
performing any other duties assigned
to the Committee by the Board of
Directors.
The Audit Committee carries out
self-evaluation of its work annually,
and the Chair of the Committee
reports the results to the Board of
Directors.
Audit Committee in 2022
Until the Annual General Meeting on
12 April 2022, Arja Talma served as
Chair, and Veli-Matti Reinikkala and
Tero Telaranta as members of the
Audit Committee. The members of
the Audit Committee were independ-
ent of the Company. Tero Telaranta
is dependent on a significant share-
holder of the Company. As of 12 April
2022, the composition of the Audit
Committee remained unchanged,
and Arja Talma served as Chair, and
Veli-Matti Reinikkala and Tero Telaranta
as members of the Audit Committee.
In 2022, the Audit Committee met
five times. The meeting attendance is
reported in the table to the left.
In 2022, the committee reviewed
plans to simplify the Group’s legal
structure and finance Chinese oper-
ations besides its regular reviews of
financial reporting, audit and risk man-
agement. The follow-up of the Group’s
plans to mitigate cyber security risks
became more frequent than earlier.
On 15 December 2022, the Board
of Directors decided on changes
in the composition of the Board of
Directors’ Audit Committee. As of
January 1, 2023, the composition of
the Audit Committee is as follows:
Arja Talma (Chair), Sarlotta Narjus and
Tero Telaranta.
People and Remuneration Committee
The People and Remuneration Com-
mittee assists the Board of Directors
by preparing matters within the com-
petence of the Board of Directors. The
Board of Directors is responsible for the
Glaston Annual Review 2022 48
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
duties it assigns to the Committee.
The Board of Directors specifies
the duties of the People and Remu-
neration Committee in a charter
confirmed by the Board of Directors.
Key duties of the Committee include
preparing the remuneration policy
and remuneration report for the Board
and the Annual General Meeting,
preparing salaries and other benefits
of Glaston’s CEO and other members
of the Executive Management Group,
preparing the nomination of the CEO
and other members of the Execu-
tive Management Group and their
successors, and preparing proposals
for Glaston's short- and long-term
incentive schemes as well as moni-
toring the company’s key personnel’s
successor and development plan.
In addition, the Committee's duties
include carrying out all other duties
assigned to the Committee by the
Board of Directors.
The People and Remuneration
Committee convenes at the invita-
tion of the Chair, as necessary and at
least twice a year. The Members of the
Board of Directors and the CEO have
the right to attend the meetings of the
Committee.
The People and Remuneration
Committee regularly carries out
self-evaluation of its work, and the
Chair of the Committee reports the
results to the Board of Directors.
People and Remuneration Committee
in 2022
Until the Annual General Meeting on
12 April 2022, Sebastian Bondestam
served as Chair, and Sarlotta Narjus,
Antti Kaunonen and Michael Willome
as members of the People and Remu-
neration Committee. After the Annual
General Meeting, Sebastian Bondes-
tam continued as Chair, with Antti
Kaunonen, Sarlotta Narjus, and Michael
Willome as members of the commit-
tee. The members of the People and
Remuneration Committee were inde-
pendent of the Company. Sebastian
Bondestam is dependent on a signifi-
cant shareholder of the Company.
In 2022, the People and Remuner-
ation Committee met four times. The
meeting attendance is reported in
the table on the previous page. On
the committee’s agenda were the
incentive program for top manage-
ment and the outcome of the same,
top management review and remu-
neration as well as a talent review
follow-up. In addition, the committee
prepared the remuneration report for
the governing bodies.
On 15 December 2022, the Board of
Directors decided on changes in the
composition of the Board of Directors’
People and Remuneration Commit-
tee. As of January 1, 2023, the compo-
sition of the People and Remuneration
Committee is as follows: Veli-Matti
Reinikkala (Chair), Sebastian Bondes-
tam, Antti Kaunonen and Michael
Willome.
Shareholders’ Nomination Board
The Nomination Board’s task is to
prepare and present annually for the
Annual General Meeting and, if nec-
essary, for an Extraordinary General
Meeting, a proposal concerning the
number of Members of the Board of
Directors, a proposal on the identities
of the Members of the Board, and a
proposal on the remuneration of the
Members of the Board. An additional
task of the Nomination Board is to
seek candidates as potential Members
of the Board of Directors.
In its activities, the Nomination
Board complies with current legisla-
tion, stock exchange rules applicable
to the Company, and the Corporate
Governance Code.
The Nomination Board consists of
four (4) members, all of whom are
appointed by the Company’s four
largest shareholders, who appoint one
member each. The Chair of the Com-
pany’s Board of Directors serves as an
advisory member of the Nomination
Board.
The Company’s largest share-
holders entitled to appoint members
to the Nomination Board are deter-
mined annually on the basis of the
registered holdings in the company’s
shareholder register held by Euroclear
Finland Ltd on the first working day
in September of the year in question.
The Nomination Board elects a Chair
from among its members.
The Nomination Board is estab-
lished to serve until a General Meeting
of Shareholders decides otherwise.
The members of the Nomination
Board are appointed annually and the
term of office of the members expires
when new members are appointed to
the Board.
The members of the Nomination
Board shall be independent of the
company, and no person belonging
to the Company’s executive man-
agement shall be a member of the
Nomination Board.
The Nomination Board shall submit
its proposals to the Company’s Board
of Directors annually by the end of
January preceding the Annual General
Meeting. Proposals for an Extraordi-
nary General Meeting shall be sub-
mitted to the Company’s Board of
Directors so that they can be included
Glaston Annual Review 2022 49
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
in the notice to attend the meeting.
A decision of the Nomination Board
shall be the opinion of a majority of
the members of Nomination Board.
If the votes are tied, then the Chair’s
vote shall be decisive. If the votes are
tied in the election of the Chair, the
member candidate for Chair nomi-
nated by the shareholder who had the
largest number of shares when the
Nomination Board was established
shall be elected as Chair.
A report on the activities of the
Nomination Board shall be presented
at the Annual General Meeting and
published on the Company’s website.
Shareholders’ Nomination Board 2022
Until 31 August 2022, the Shareholders’
Nomination Board comprised of Lasse
Heinonen (Chair), as the represent-
ative nominated by Ahlstrom Capital
B.V., Jaakko Kurikka, as the represent-
ative nominated by Hymy Lahtinen Oy,
Pekka Pajamo, as the representative
nominated by Varma Mutual Pension
Insurance Company, and Esko Torsti,
as the representative nominated by
llmarinen Mutual Pension Insurance
Company.
In accordance with its charter, the
Nomination Board prepared its pro-
posal concerning the Board compo-
sition and remuneration to the AGM
2022. The Nomination Board proposed
that the number of members of the
Board of Directors would be seven
and that Sebastian Bondestam, Antti
Kaunonen, Sarlotta Narjus, Veli-Matti
Reinikkala, Arja Talma, Tero Telaranta
and Michael Willome be re-elected as
Members of the Board of Directors.
The Nomination Board proposed that
the annual remuneration of the Mem-
bers of the Board of Directors would
be increased and to be as follows:
Chair EUR 70,000 (60,000), Vice Chair
43,000 (40,000) and Members EUR
33,000 (30,000).
Based on ownership on 1 Septem-
ber 2022, the Shareholders’ Nomina-
tion Board remained unchanged and
comprised of Lasse Heinonen, as the
representative nominated by Ahlstrom
Capital B.V., Jaakko Kurikka, as the
representative nominated by Hymy
Lahtinen Oy, Pekka Pajamo, as the
representative nominated by Varma
Mutual Pension Insurance Company,
and Esko Torsti, as the representative
nominated by llmarinen Mutual Pen-
sion Insurance Company. Veli-Matti
Reinikkala, Chair of the Glaston Corpo-
ration’s Board of Directors, served as
an advisory member of the Nomina-
tion Board.
In its organizing meeting on 9 Sep-
tember 2022, the Nomination Board
elected Lasse Heinonen amongst
its members as the Chair. The Board
met three times during 2022 and the
average attendance of members was
100%. No fees were paid to the mem-
bers of the Nomination Board.
In accordance with its charter,
the Nomination Board prepared
its proposal concerning the Board
composition and remuneration also
to the AGM 2023. The proposal was
disclosed on 14 December 2022
and according to the proposal, the
Nomination Board proposed that the
number of members of the Board
of Directors would be seven and
that Sebastian Bondestam, Antti
Kaunonen, Sarlotta Narjus, Veli-Matti
Reinikkala, Arja Talma, Tero Telaranta
and Michael Willome be re-elected as
Members of the Board of Directors.
The Nomination Board proposed that
the remuneration of the members
of the Board of Directors remain
unchanged and that accordingly, the
annual remuneration be as follows:
Chair EUR 70 000, Vice Chair 43 000
and Members EUR 33 000.
President & CEO
The President & CEO handles the
operational management of the Com-
pany in accordance with instructions
issued by the Board of Directors. He
is responsible to the Board of Direc-
tors for fulfilling the targets, plans and
goals that the Board sets. The Presi-
dent & CEO is responsible for ensur-
ing that the Company’s accounting
is in compliance with the law and
that financial management has been
arranged in a reliable manner. The
President & CEO is supported by the
Executive Management Group.
Anders Dahlblom has served as
President & CEO as of 1 January 2021.
Deputy to the CEO
Sasu Koivumäki, CSO (Chief Sales
Officer), has served as Deputy to the
CEO since 1 January 2015. The Deputy
to the CEO carries out the duties of
the CEO after the termination of his/
her service or when he/she is tempo-
rarily prevented from performing his/
her duties.
Executive Management Group
The Chair of the Company’s Board of
Directors appoints, on the proposal
of the President & CEO, the Members
of the Executive Management Group
Glaston Annual Review 2022 50
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
and confirms their remuneration and
other contractual terms. The Compa-
ny’s President & CEO acts as the Chair
of the Executive Management Group.
The Executive Management Group
handles the Group’s and business
areas’ strategy issues, capital expend-
iture, financial development, product
policy, Group structure and control
systems, and supervises the Compa-
ny’s operations.
The Members of the Executive
Management Group report to the
President & CEO and assist him in
implementing the Company’s strat-
egy, operational planning and man-
agement, and in reporting the devel-
opment of business operations. The
Executive Management Group meets
under the direction of the President &
CEO.
In 2022, the composition of the
Executive Management Group was
the following: President and CEO
Anders Dahlblom, CSO and Dep-
uty CEO Sasu Koivumäki, CFO Päivi
Lindqvist, SVP Glaston Heat Treatment
Technologies Miika Äppelqvist, SVP
Glaston Insulating Glass Technologies
Dietmar Walz, SVP Glaston Automo-
tive and Display Technologies Robert
Prange, SVP Services Artturi Mäki, SVP
People & Culture Hannele Anonen and
General Counsel Taina Tirkkonen.
The Executive Management Group
convened 12 times in 2022.
Glaston Annual Review 2022 51
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Executive Management Group 31 December 2022
Area of responsibility Member since Year of birth Education
Share ownership
on 31.12.2022
*)
Anders Dahlblom President & CEO Employed by the company since
2021
1974 M.Sc. (Econ.) 530,000 shares
Other members of the
Executive Management
Group
Sasu Koivumäki CSO
Deputy to CEO since 2015
Employed by the Company since 2002,
Member of the Executive Management
Group since 2012
1974 M.Sc.(Econ.) 89,979 shares
Päivi Lindqvist Chief Financial Officer Employed by the company and Member of
the Executive Management Group since 2016
1970 M.Sc.(Econ), MBA 38,680 shares
Miika Äppelqvist SVP Glaston Heat Treatment
Technologies
Employed by the company since 2013,
Member of the Executive Management
Group since 2020
1981 MSc, (Eng.) 6,815 shares
Dietmar Walz SVP Insulating Glass Technologies Employed by the company and Member of
the Executive Management Group since 2019
1960 M.Sc.(B.Admin) No shares
Robert Prange SVP, Automotive and Display
Technologies
Employed by the company since 2019.
Member of the Executive Management
Group since 2020
1970 Dr. Ing. 40,000 shares
Taina Tirkkonen General Counsel Employed by the company since 2011,
Member of the Executive Management
Group since 2013
1975 LL.M, M.Sc.
(Admin), MBA
27,500 shares
Artturi Mäki SVP Services Employed by the company and Member of
the Executive Management Group since 2016
1969 M.Sc.(Eng.) 4,731 shares
Hannele Anonen SVP People & Culture Employed by the company and Member of
the Executive Management Group since 2021
1971 eMBA No shares
*)
Share ownership includes also the ownership of Glaston Corporation shares by the entities controlled by the person in question
Glaston Annual Review 2022 52
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Remuneration of the CEO & Presi-
dent and the Executive Management
Group is described in the Remunera-
tion Report 2022 and on the compa-
ny’s website.
At the end of 2022, the Steering
Executive Management Group com-
prised, in addition to the above-men-
tioned members of the Executive
Management Group, of Kimmo Kuu-
sela (VP Strategic Accounts & Innova-
tion, Architectural Business), Marcus
Schrod (VP Operations, Neuhausen),
Pekka Nieminen (General Manager
and VP, Sales and Operations, China),
Marco Stehr (SVP Sales and service,
EMEA), Pia Posio (VP Marketing, Com-
munications and IR), Jens Mayr (SVP
China strategy), Joe Butler (SVP Sales
& Service, Americas), José Yepes,
(VP, Strategic accounts & Innovation,
Automotive and Display Business)
and Janne Puhakka (Director, ICT).
The Executive Steering Management
Group met four times in 2022.
Main Features of Internal Control and
Risk Management Pertaining to the
Financial Reporting Process
Internal control is an essential part of
the Company’s administration and
management. Its aim 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 spec-
ified Group-wide principles for the
main areas of its operations that form
the basis for internal control.
The Group’s internal control sys-
tems serve to provide reasonable
assurance that the financial reports
published by the Group give reason-
ably correct information about the
Group's financial position. The Board
of Directors and the President & CEO
are responsible for arranging internal
control. A report covering the Group's
financial situation is supplied monthly
to the Board of Directors. The Group's
internal control is decentralized to dif-
ferent Group functions, which super-
vise compliance with instructions
approved by the Board of Directors
within their areas of responsibility. The
Group’s financial management and
operational control are supported and
coordinated by the Group’s financial
management and controller network.
The Group’s financial reporting
process complies with the Group’s
operating guidelines and stand-
ards relating to financial reporting.
The interpretation and application
of financial reporting standards has
been concentrated in the Group’s
Financial Management organization,
which maintains operating guide-
lines and standards relating to finan-
cial reporting and is responsible for
internal communication relating to
them. The Group’s Financial Manage-
ment organization also supervises
compliance with these guidelines
and standards. The Company has no
separate internal auditing organiza-
tion. The Group’s Financial Manage-
ment organization regularly monitors
the reporting of the Group’s units and
addresses deviations perceived in
reporting and, if necessary, performs
either its own separate internal control
auditing or commissions the internal
control auditing from external experts.
Control of reporting and forecasting
processes is based on the Group’s
reporting principles, which are deter-
mined and centrally maintained by the
Group's Financial Management organ-
ization. The principles are applied con-
sistently throughout the Group and a
consistent Group reporting system is
in place.
Risk Management
Risk management is an essential part
of Glaston's management and control
system. The purpose of risk manage-
ment is to ensure the identification,
management and monitoring of risks
relating to business targets and oper-
ations. Risk management principles
and operating practices have been
specified in a risk management policy
approved by the Company’s Board of
Directors.
The principle guiding Glaston's risk
management is the continuous, sys-
tematic and appropriate development
and implementation of the risk man-
agement process, with the objective
being the comprehensive recognition
and appropriate management of risks.
Glaston’s risk management focuses
on the management of risks relating to
business opportunities and of risks that
threaten the achievement of Group
objectives in a changing operating
environment. From the perspective of
risk management, the Company has
divided risks into four different groups:
strategic risks, operational risks, finan-
cial risks and hazard risks. Risks relating
to property, business interruption as
well as liability arising from the Group’s
operations have been covered by
appropriate insurances. Management
of financial risks is the responsibility
of the Group Treasury in the Group’s
parent company.
Glaston's risk management policy
includes guidelines relating to the
Group's risk management. Risk man-
agement policy also specifies the risk
management processes and respon-
sibilities. Glaston's risk management
Glaston Annual Review 2022 53
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
consists of the following stages: risk
recognition, risk assessment, risk
treatment, risk reporting and com-
munication, and control of risk man-
agement activities and processes. As
part of the risk management process,
the most significant risks and their
possible impacts are reported to the
Company’s management and the
Board of Directors regularly, based on
which management and the Board
are able to determine the level of risk
that the Company’s business func-
tions are potentially ready to accept in
each situation or at a certain time.
It is the duty of Glaston’s Board of
Directors to supervise the implemen-
tation of risk management and to
assess the adequacy and appropriate-
ness of the risk management process
and of risk management activities. In
practice, risk management consists of
appropriately specified tasks, oper-
ating practices and tools, which have
been adapted to Glaston’s business
functions and Group-level manage-
ment systems. Risk management is
the responsibility of the SVP of each
segment and the head of Group-level
function. Risk recognition is in practice
the responsibility of every Glaston
employee.
The Group Legal function is respon-
sible for guidelines, support, control
and monitoring of risk management
measures. In addition, the function
consolidates segment and Group-
level risks. The Group Legal function
reports on risk management issues
to the President & CEO and the
Executive Management Group and
assesses in collaboration with them
any changes in the probabilities or the
impacts of identified risks and in the
level of their management. The Group
Legal function also reports the results
of risk management processes to the
Board of Directors.
Segment and Group-level risk
management is included in the annual
Group-wide risk management pro-
cess. The process can also always be
initiated when required if substantial
strategic changes requiring the initia-
tion of the risk management process
take place in a certain segment.
The management group of each
segment and function identifies and
assesses its operational risks and
specifies risk management measures
by which an acceptable level of risk
can be achieved.
Utilizing the risk management pro-
cess, risks are systematically
identified and assessed in each seg-
ment and at Group level. In addition, at
each level actions are specified which,
when implemented, will achieve an
acceptable risk level. Risks are consol-
idated at Group level. Action plans are
prepared at each level of operations
to ensure risks remain at an accept-
able level.
The Group's risks are covered in
more detail in the Report of the Board
of Directors on page 88. The manage-
ment and organization of the Group’s
financial risks are presented in more
detail in Note 5.4 of the consolidated
financial statements on page 159.
Information and Communications
An effective internal control system
requires sufficient, timely and reliable
information to enable management
to assess the achievement of the
company’s goals. There is a need for
both financial and other information
on the Company’s internal and exter-
nal events and activities. Employees
have the opportunity to report, also
through a whistleblowing channel, any
questionable activity they observe. All
external communications are han-
dled in accordance with the Group’s
Disclosure policy.
Auditing
The Company has one Auditor, which
must be an auditing firm authorized
by the Finnish Patent and Regis-
tration Office. The Annual General
Meeting elects the Auditor to audit
the accounts for the financial year,
and the Auditor’s duties cease at
the close of the subsequent Annual
General Meeting. It is the Auditor’s
duty to audit the consolidated and
parent company financial statements
and accounting as well as the par-
ent company’s governance, and to
give reasonable assurance that the
financial statements as a whole are
free from material misstatement. The
Company’s Auditor presents the audit
report required by law to the Compa-
ny’s shareholders in connection with
the annual financial statements and
reports regularly to the Board of Direc-
tors. The Auditor, in addition to fulfilling
general competency requirements,
must also comply with certain legal
independence requirements guaran-
teeing the execution of an independ-
ent and reliable audit.
Audit 2022
At the 2022 Annual General Meeting,
the accounting firm KPMG Oy Ab was
re-elected as the Company’s Auditor.
The auditor with principal responsi-
bility was Lotta Nurminen APA. Audit-
ing units representing KPMG have
served as the auditors of the Com-
pany's subsidiaries in most operating
countries. In 2022, the Group's auditing
Glaston Annual Review 2022 54
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
costs totaled approximately EUR 376
thousand, of which KPMG received
approximately EUR 302 thousand. In
addition, auditing units belonging to
KPMG have provided legal statements
to a total value of EUR 15 thousand and
other advice to Group companies to a
total value of EUR 95 thousand.
Principles for Related Party
Transactions
Glaston complies with legislation
concerning related party transactions
and, in accordance with legislation
and the Corporate Governance Code,
ensures that requirements related to
monitoring, assessing, decision-mak-
ing and disclosure of related party
transactions are complied with.
Glaston’s Board of Directors monitors
and assesses the transactions of the
Company and its related parties.
Glaston has defined the parties
that are related to the Company, and
Glaston’s Communications Depart-
ment maintains a list of individuals
and legal persons who are consid-
ered to be related parties. Glaston
maintains up-to-date guidelines
on related party regulation and the
monitoring thereof. Requirements
regarding related party transactions
have also been taken into account in
Glaston’s Code of Conduct.
Glaston may enter into transac-
tions with its related parties as long
as the transactions are part of Glas-
ton’s ordinary business operations
and made on ordinary commercial
terms and conditions. In such situ-
ations, Glaston’s internal guidelines
and decision-making processes are
complied with. Related party trans-
actions that deviate from Glaston’s
normal business operations or are not
made on ordinary commercial terms
are decided on by Glaston’s Board of
Directors, respecting provisions on
disqualification.
Related party transactions are
regularly monitored in Glaston’s
finance unit. Management personnel
belonging to Glaston’s related parties
are obliged to notify Glaston’s Related
Party Administration without undue
delay about related party transactions
or planned related party transactions
that they become aware of. Potential
conflicts of interest are monitored
through internal audits. Results of the
monitoring of related party transac-
tions are reported regularly to the
Audit Committee of the Board of
Directors.
Glaston reports on related party
transactions regularly in its financial
statements. Related party transac-
tions which are material to sharehold-
ers, and which deviate from normal
business or are not made according to
ordinary commercial terms and con-
ditions are published in accordance
with the Securities Market Act and the
rules of Nasdaq Helsinki Ltd.
Insider Administration
In addition to the statutory insider
regulations, Glaston complies with the
insider guidelines of Nasdaq Helsinki
Ltd as well as the internal guidelines
adopted by Glaston at any given time.
In accordance with the EU’s Market
Abuse Regulation, Glaston prepares
and maintains a list of persons dis-
charging managerial responsibilities
as well as persons and entities closely
associated with them. In Glaston
Corporation, the persons discharging
managerial responsibilities are the
Members of the Board of Directors,
the President & CEO, the Deputy CEO,
and the Chief Financial Officer. At
least once a year, Glaston checks the
information of persons discharging
managerial responsibilities that have
a duty to declare as well as persons
and entities closely associated with
them. Glaston reports the securities
transactions of persons discharging
managerial responsibilities and their
related parties in accordance with the
Market Abuse Regulation.
Glaston does not maintain an insider
list relating to permanent insiders.
During the preparation of significant
projects and events, the Company
maintains project- and event-specific
lists of insiders. Insiders are given a
written statement of their inclusion in
an insider register as well as guidelines
on insider obligations.
The Company’s persons discharg-
ing managerial responsibilities, persons
serving in certain key positions and
persons participating in the prepara-
tion of financial reports must not trade
in the Company’s financial instruments
during the 30-day period before the
publication of interim reports and
financial statement releases. With
respect to project-specific insiders,
trading in the Company’s financial
instruments is prohibited until the can-
cellation or publication of the project.
The Company’s insider admin-
istration, its implementation and
supervision are the responsibility of
Group Legal function and the Com-
munications Department. Glaston’s
General Counsel is responsible for
the Company’s insider issues. The
Company’s Communications Depart-
ment is responsible for maintaining
the list of insiders and for overseeing
the restriction on trading and duty to
declare.
Glaston Annual Review 2022 55
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Remuneration Report for Governing
Bodies 2022
Introduction
This Remuneration Report for the
financial year 2022 (the “Remuner-
ation Report”) describes the remu-
neration for Governing Bodies of
Glaston Corporation (“Glaston” or the
“Company”) as required by the Finnish
Securities Market Act (746/2012, as
amended), the Finnish Companies
Act (624/2006, as amended) and the
Finnish Corporate Governance Code
2020 (the “CG Code”) issued by the
Securities Markets Association. In
addition to aforementioned, Glaston
complies with other legal provisions
concerning listed companies, Glas-
ton’s Articles of Association and the
rules and guidelines issued by Nasdaq
Helsinki Ltd.
The Remuneration Report presents
information on the remuneration of
the Board of Directors, the President
and CEO and the Deputy CEO for
the financial year 2022 and has been
approved by the Board of Directors
(also the “Board”) of Glaston.
The principles, decision-making
processes, and practises for the remu-
neration of the Board of Directors, the
President and CEO and the Deputy
CEO are set forth in the Remuneration
Policy of Glaston (the “Remuneration
Policy”). The Remuneration Policy
was approved at the Annual General
Meeting on 28 May 2020 without any
advisory votes. The Remuneration
Policy shall be applied until the Annual
General Meeting to be held in 2024
unless the Board determines that a
revised policy should be presented for
the general meeting at an earlier date.
The remuneration principles in
Glaston are designed to attract and
retain to the Company’s management
persons that possess relevant skills,
industry knowledge and experience to
oversee the Company’s achievement
of its performance and strategy goals
with emphasis on long-term share-
holder value creation. The structure of
the total remuneration is to be aligned
with the long-term value of Glas-
ton, the business strategy, financial
results as well as to the employee’s
contribution. Remuneration is based
on predetermined and measurable
performance and result criteria. The
remuneration principles support the
strategy of Glaston.
The remuneration of the Board, the
President and CEO and the Deputy
CEO follows the Remuneration Policy
framework and principles. No tempo-
rarily deviations from the policy have
taken place during the financial year
2022. Further, no clawbacks of the
remuneration have taken place during
the said financial year 2022.
Development of remuneration in

the Company
This section presents the trend of
remuneration of the President and
CEO, the Deputy CEO and the Board,
the average employee remuneration
and company performance for the
financial years 2018-2022.
The Remuneration Policy and fur-
ther information about remuneration
is available at Glaston website:
www.glaston.net/investors.
In accordance with the Remuner-
ation Policy, part of the remuneration
payable to the President and CEO and
the Deputy CEO may consist of short-
term and long-term incentives. Crite-
ria of such incentive plans are linked to
the Company’s performance (pay-for
performance) and thus incentive
plans of Glaston ensure that the remu-
neration drives the best interest of the
Company.
With respect to the remuneration
development for the financial years
2018-2022, the following shall be
noted.
Glaston is a global company and
the remuneration levels vary signifi-
cantly in markets where Glaston oper-
ates. Nevertheless, it is considered
most transparent to compare the
remuneration of the governing bodies
with the remuneration of employees
globally on group level. Thus, the fig-
ures on average employee remuner-
ation below are based on data for all
Glaston employees globally. Further,
Glaston acquired Bystronic glass in
2019. Bystronic glass was consolidated
to Glaston as of 1 April 2019 and as a
result of such transaction the total
Glaston Annual Review 2022 56
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
number of Glaston’s employees grew
by 121% and totalled 790 on 31 Decem-
ber 2019 (31 December 2018: 357)
while net sales in January–December
2019 totalled EUR 181.0 million (2018:
EUR 101.1 million).
Further, as reported in the remu-
neration report for the financial year
2020, due to the COVID-19 pandemic,
Glaston took several proactive actions
in 2020. Actions affecting employee
remuneration included temporar-
ily reducing labour costs by initiat-
ing temporary layoffs and reducing
working hours. The fixed salaries of
the executive management group, of
which the President and CEO and the
Deputy CEO are members, were tem-
porarily cut by 10 % during Q2/2020.
Some of these actions continued
to have effect also in 2021 but were
cancelled in early 2021 as a result of
the improved market situation. These
actions did not concern the Presi-
dent and CEO and the Deputy CEO.
No actions affecting the remunera-
tion were taken in FY2022 due to the
pandemic.
Due to the nature of the Board
duties and responsibilities, the remu-
neration of the Board includes fixed
remuneration only. The effect of
Bystronic glass transaction on Glas-
ton and its operations has also been
reflected in the remuneration level of
the Board of Directors.
EUR 2018 2019 2020 2021 2022
Annual remuneration of
the Board 237,425 283,550 331,300 353,700 345,900
Annual remuneration of
the President and CEO 446,601 467,466 163,598
1
330,622
2
644,244
Annual remuneration of
the Deputy CEO 198,958 305,777
3
108,645
4
337,574
5
378,192
6
Annual remuneration
of the Acting President
and CEO - - 254,558
7
-
Average salary
development
8
49,600 61,500 60,400 66,500 70,500
1
Remuneration for Arto Metsänen from the period 1 January to 31 May 2020. (Former President and
CEO since 1 June 2020.)
2
Remuneration for Anders Dahlblom.
3
Excluding reimbursement of costs and expenses paid directly to third parties based on the expa-
triate agreement.
4
Remuneration from the period 1 January to 31 May 2020, Deputy CEO appointed as an Acting
President and CEO for the rest of the year 2020. Excluding reimbursement of costs and expenses
paid directly to third parties based on the expatriate agreement.
5
Excluding reimbursement of costs and expenses paid directly to third parties based on the expa-
triate agreement.
6
Excluding reimbursement of costs and expenses paid directly to third parties based on the
expatriate agreement and amounting to in total EUR 175,831. Total remuneration including also third
party fees thus amounting to EUR 554,023.
7
Remuneration from period 1 June to 31 December 2020. Excluding reimbursement of costs and
expenses paid directly to third parties based on the expatriate agreement.
8
Average salary development at Glaston is calculated by dividing salaries and rewards by the aver-
age number of employees during the financial year. Employees of former Bystronic companies are
included as of April 1, 2019 onwards. Amounts do not include employer’s social security costs.
9
Bystronic glass consolidated as of 1 April 2019.
Remuneration development
EUR 1,000 2018 2019
9
2020 2021 2022
Net sales 101,139 181,018 170,067 182,662 213,520
Comparable operating
result (EBIT) 5,663 5,941 3,225 6,569 9,917
Comparable EBITA 7,556 9,746 7,742 11,098 13,624

Glaston Annual Review 2022 57
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
* Deputy CEO remuneration for 2019 includes also remuneration paid to Sasu Koivumäki as Acting
CEO and President.
The relation between remuneration development and the Company’s perfor-
mance has been further illustrated in the chart below:
Remuneration of the Board of
Directors
The 2022 Annual General Meeting
resolved that an annual fee of EUR
70 000 shall be paid to the Chair of the
Board, EUR 43,000 to the Deputy Chair
and EUR 33,000 to other Members of
the Board.
Further, the 2022 Annual General
Meeting resolved that a member of
the Board may, at his/her discretion,
choose to receive the annual fixed
remuneration partly in company
shares and partly in cash so that
approximately 40% of the annual
fixed remuneration is paid in Glaston
Corporation’s shares. The number of
shares forming the above remunera-
tion portion, which would be payable
in shares, will be determined based on
the share value in the stock exchange
trading maintained by Nasdaq Helsinki
Ltd, calculated as the trade volume
weighted average quotation of the
share during the one-month period
immediately following the date on
which the interim report of Janu-
ary-March 2022 of the Company is
published.
A meeting fee of EUR 800 shall
be paid to the Chair for meetings in
Chair’s home country and EUR 1,500
for meetings elsewhere, and EUR
500 shall be paid to the other Mem-
bers of the Board for meetings held
in their home country and EUR 1,000
for meetings held elsewhere. Half
of the normal fee shall be paid for a
board meeting held per capsulam. In
addition, it was decided that Board
members shall be paid travel and
accommodation expenses and other
direct expenses arising from board
work pursuant to the Company's nor-
mal practice.
Furthermore, the members of the
Audit and People and Remuneration
Committees shall be paid a meet-
ing fee of EUR 500 for each meeting
that the members have attended. In
addition to the meeting fee, the Chair
of the Audit Committee shall be paid
an annual fee of EUR 10,000 and the
Chairman of the People and Remu-
neration Committee shall be paid an
annual fee of EUR 7,500.
The members of the Board do not
participate in any incentive plans.
All the payments to the members
of the Board during the financial year
2022 were in compliance with the
Remuneration Policy.
In the financial year 2022, the fol-
lowing fees were paid to the mem-
bers of the Board, an annual fee and
meeting fees including both Board
and committee related remuneration
(table on next page). As set out below,
five members of the Board chose to
receive the annual fixed remuneration
partly in company shares.
Board remuneration
CEO remuneration
Deputy CEO remuneration*
Employee remuneration
EBIT
EBITA

2018
3,000
TEUR
2,500
0
500
1,000
1,500
2,000
2019 2020 2021 2022
Glaston Annual Review 2022 58
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Board Audit Committee
People and Remuneration
Committee Annual fee (EUR) Meeting fees (EUR)
Remuneration in total
(EUR)
Veli-Matti Reinikkala,
Chair of the Board
Member 67,500
Of which EUR 28,000
paid in Glaston shares
15,900 83,400
Sebastian Bondestam,
Deputy Chair of the Board
Chair 49,750
Of which EUR 17,000
paid in Glaston shares
6,750 56,500
Antti Kaunonen Member 32,250
Of which EUR 13,000
paid in Glaston shares
6,250 38,500
Sarlotta Narjus Member 32,250 6,750 39,000
Arja Talma Chair 42,250
Of which EUR 13,000
paid in Glaston shares
6,750 49,000
Tero Telaranta Member 32,250
Of which EUR 13,000
paid in Glaston shares
7,250 39,500
Michael Willome Member 32,250 7,750 40,000
Total 288,500 57,400 345,900
Glaston Annual Review 2022 59
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Remuneration of the President
and CEO and the Deputy CEO
The remuneration of the President
and CEO and the Deputy CEO com-
prises of a base salary, benefits and
performance-based incentive plans.
Anders Dahlblom served as the
President and CEO, and Chief Sales
Officer Sasu Koivumäki as the Deputy
CEO during the financial year 2022.
Sasu Koivumäki has worked as an
expatriate in Singapore as of Novem-
ber 2021.
In 2022, the President and CEO
Anders Dahlblom was paid the total
remuneration of EUR 644,244. The rela-
tive proportion of the fixed pay was 51%
Actualised remuneration of the President & CEO, and Deputy CEO
for 2022
Performance Actualisation 2022 (STI AND LTI)
President and CEO and Deputy CEO participated in the short-term incentive
plan in 2022.
The short-term incentive (STI) opportunity of the President and CEO was in
2022 tied to the following metrics:
The short-term incentive (STI) opportunity of the Deputy CEO was in 2022 tied to
the following metrics:
KPI Weight Achievement
Glaston EBITA 70% Above target
Glaston Order Intake 30% Above target (max)
KPI Weight Achievement
Glaston EBITA 40% Above target
Glaston Order Intake 50% Above target (max)
South East Asia (SEA)
Order Intake 10% Above min, below target
and variable pay 49% (supplementary
pension not included). The different
components are described in more
detail below.
In 2022, Deputy CEO Sasu Koivumäki
was paid the total remuneration of
EUR 378,192. The relative proportion
of the fixed pay was 75% and variable
pay 25% (supplementary pension not
included). The different components
are described in more detail below.
Further, total remuneration paid to
Sasu Koivumäki in 2022 is excluding
reimbursement of costs and expenses
in the amount of EUR 175,831 paid
directly to third parties based on the
expatriate agreement.
Remuneration paid or due to be paid under the STI is specified in more detail at
the end of this section.
Glaston has long-term incentive (LTI) plans to i.a. retain the key personnel and to
offer them with a competitive reward plan based on the earning and accumulat-
ing the Company’s shares.
President and CEO and the Deputy CEO participate in the Performance Share
Plan 2022‒2026 which comprise of three (3) performance periods: calendar years
2022‒2024, calendar years 2023–2025 and calendar years 2024–2026. The partici-
pants shall hold 50% of the net number of shares received under the plan until the
number of the Company’s shares held by the participant corresponds to the value
of his gross annual base salary. Such number of shares shall be held during the
term of the employment or service of the participant. As a rule, no reward will be
paid in case the employment or service terminates before the reward payment
is made.
Fixed pay ........................ 87%
Pension ............................. 13%
CEO & President Anders Dahlblom
Fixed pay ........................ 84%
Pension ............................. 12%
Benefits .............................. 4%
Deputy CEO Sasu Koivumäki
Glaston Annual Review 2022 60
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
KPI Weight
Group Cumulative Comparable EBITA after LTI and STI 80%
Service Net Sales 20%
Total 100%
For the first performance period under the Performance Share Plan 2022‒2026
(LTI 2022‒2024), objectives were set regarding the Group as follows:
Additionally, the President and CEO and the Deputy CEO participate(d) in the
Performance Share Plan 2019‒2023 which comprised of three (3) performance
periods: calendar years 2019‒2021, calendar years 2020–2022 and calendar
years 2021–2023. However, as the President and CEO Anders Dahlblom joined the
Company first in 2021, he did not participate in the two first performance peri-
ods of the said plan. The participants shall hold 50% of the net number of shares
received under the plan until the number of the Company’s shares held by the
participant corresponds to the value of his gross annual base salary. Such num-
ber of shares shall be held during the term of the employment or service of the
participant. As a rule, no reward will be paid in case the employment or service
terminates before the reward payment is made.
For the two first performance periods under the Performance Share Plan
2019‒2023 (LTI 2019‒2021 and LTI 2020‒2022) objectives were set regarding Group
Cumulative Comparable EBITA and Average Net Gearing as follows:
The maximum opportunity for the two first performance periods was 40,000
shares for the Deputy CEO. The achievement (%) for the performance period LTI
2019‒2021 is approximately 9.7% and for the performance period LTI 2020‒2022
approximately 14%.
For the third performance period under the plan (LTI 2021‒2023) objectives
were set regarding Group as follows:
KPI Weight
Group Cumulative Comparable EBITA 80%
Average Net Gearing 20%
Total 100%
KPI Weight
Group Cumulative Comparable EBITA 80%
Service Net Sales 20%
Total 100%
The maximum opportunity for the third performance period is 128,000 shares for
the President and CEO, and 56,000 shares for the Deputy CEO.
Glaston Annual Review 2022 61
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Element Remuneration Description
President and CEO Deputy CEO
FIXED
Base salary and benefits
EUR 331,120
Including taxable fringe benefits: mobile phone, company car,
lunch benefit
EUR 282,536
Excluding utilities and fees paid directly to third parties amounting to in
total of EUR 175,831 (EUR 458,367 such fees included)
VARIABLE
Short-term incentive (STI)
Performance year 2021 (paid in 2022): EUR 233,280
Performance year 2022 (paid in 2023): EUR 175,608
The maximum amount of the President & CEO’s annual bonus is 80%
of the annual salary.
Performance year 2021 (paid in 2022): EUR 99,691
Performance year 2022 (paid in 2023): EUR 79,447
The maximum amount of the Deputy CEO’s annual bonus is 40% of the
annual salary.
VARIABLE
Long-term incentive (LTI)
2019-2023
For additional information on
long-term incentive plans,
please see Glaston’s website.
Finalized plans: N/A.
President and CEO joined the Company on 1 January 2021 and thus
did not participate in LTI 2019‒2021 or 2020‒2022.
Ongoing plans:
The maximum reward for the ongoing LTI 2021‒2023 is 128,000
shares, including also the portion to be paid in cash.
Finalized plans:
LTI 2019‒2021 (paid in 2022): EUR 4,484 (The maximum reward was
40,000 shares, including also the portion to be paid in cash.)
The maximum reward for the LTI 2020‒2022 is 40,000 shares, including
also the portion to be paid in cash.
Ongoing plans:
The maximum reward for the ongoing LTI 2021‒2023 is 56,000 shares,
including also the portion to be paid in cash.
VARIABLE
Long-term incentive (LTI)
2022-2026
For additional information
on long-term incentive
plans, please see Glaston’s
website.
Finalized plans:
N/A.
Ongoing plans:
The maximum reward for the ongoing LTI 2022‒2024 is 128,000
shares, including also the portion to be paid in cash.
Finalized plans:
N/A
Ongoing plans:
The maximum reward for the ongoing LTI 2022‒2024 is 56,000 shares,
including also the portion to be paid in cash.
Summary of remuneration to the President and CEO and Deputy CEO
Glaston Annual Review 2022 62
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Element Remuneration Description
President and CEO Deputy CEO
OTHER
Pensions
The President and CEO participates in a non-statutory defined
contribution supplementary pension scheme.
The cost is 12% of annual fixed earnings amounting to EUR 37,303 in
2022.
The President and CEO may retire in accordance with the stipulations
of the applicable law.
The Deputy CEO participates in a non-statutory defined contribution
supplementary pension scheme. The cost is 12% of annual earnings
amounting to EUR 31,579 in 2022.
The Deputy CEO may retire in accordance with the stipulations of the
applicable law.
OTHER
Bonus in Company shares
(Signing bonus)
The President and CEO received 110,000 shares in the Company on
1 January 2022.
The President and CEO shall hold the shares for the period of two
years and shall return the shares should notice of termination be given
during the said two years period. The Board may however resolve
upon the President and CEO’s right to keep the shares.
-
Glaston Annual Review 2022 63
Glaston 2022
Sustainability
GOVERNANCE
Financial Review
Financial Review
This pdf report has been published voluntarily and is not an xHTML document
compliant with the ESEF (European Single Electronic Format) regulation.
Non-official version.
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
The Board of Directors’ Review 2022
Financial year in brief
Despite rising global economic uncer-
tainty, most of Glaston’s market areas
developed positively during the year,
and orders received increased by 17%
when compared to 2021. Neverthe-
less, over the course of the year the
deterioration of the global geopo-
litical situation and macroeconomic
conditions impacted our customers’
decision-making to some extent.
Supply chain disturbances, includ-
ing a decreased availability of com-
ponents, increases in raw material
prices, and disruptions in logistics
impacted Glaston’s operations, and
managing their effects became a
central area of focus. During 2022,
the company’s ability to manage the
situation continued to improve.
Strategy implementation pro-
gressed according to plan. The plan
to produce standard automotive glass
pre-processing machines at the fac-
tory in China moved forward, and the
deliveries of machines manufactured
in China for the Chinese market are
expected to begin over the first half of
2023. In the strategy, the solar energy
industry has been recognized as a
growing customer segment. In order
to meet the demands of this seg-
ment, Glaston launched the new CHF
Solar flat tempering line. The com-
pany’s broad product range proved
its strategic importance, as over the
course of the year several deals were
made for products from two different
product segments.
Due to the Russian invasion of
Ukraine, Glaston made the decision
to cease its operations in Russia and
business with Russian customers dur-
ing the second quarter. The cessation
of Glaston's operations in Russia has
not had a significant financial impact
on the company.
Measures to promote sustainability
in the company's operations pro-
gressed. During the year, a number
of measures were taken to reduce
Glaston’s carbon dioxide emissions.
In addition to Scope 1 and 2 emis-
sions, or direct and indirect emissions
of own operations, Scope 3, or value
chain emissions, were calculated as
well. Constituting the starting point
for future work, the results enable
the company to better identify the
measures that will support its efforts to
strengthen a sustainable business.
Operating environment
Architectural glass
In 2022, the markets continued to
develop well despite increasing sup-
ply chain problems and inflationary
pressures. The majority of customers’
investments were in increased auto-
mation and the capability to increase
production capacity and efficiency.
Towards the end of the year, the
stricter access to financing for new
projects and the inflationary situation
resulted in some investment hesita-
tion, in Europe in particular.
Demand for Heat Treatment
equipment was high. In addition to
automation, the importance of ener-
gy-efficient solutions was highlighted.
Flat tempering and flat laminating
lines, in particular, were in strong
demand. For Insulating Glass equip-
ment, high demand for the Thermo
Plastic Spacer (TPS®) line continued.
The MULTI’ARRISSER edge arriss-
ing machine was a door opener for
new integrated insulating glass lines,
thereby strengthening Glaston’s posi-
tion in the market.
For the services business overall,
the market was good as custom-
ers gradually were operational and
ready for higher utilization rates.
Demand for daily flow services and
spare parts was high. In addition,
field services grew as most countries
gradually eased their COVID-19 travel
restrictions. Supply chain disruptions
adversely impacted spare parts sales
and delivery times. The demand for
upgrades declined during the second
half of the year.
Operating environment in the regions
EMEA, with Europe as the core mar-
ket, remained the strongest market
for Insulating Glass equipment. The
high demand for the Thermo Plastic
Spacer (TPS®) technology contin-
ued, as well as for special lines, e.g. for
fire-resistant glass and glass arris-
ing. For Heat Treatment equipment,
demand in the EMEA region was at a
good level. In the final quarter, overall
signs of increasing uncertainty in the
architectural market could be seen.
For Services markets, the business
environment was mixed: demand for
daily services was strong, whereas
upgrade demand was weaker.
Glaston Annual Review 2022 65
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
In the Americas, the good demand
environment for Heat Treatment
equipment continued throughout
the year, driven by the architectural
business. After a slow start to the
year, demand for Insulating Glass
equipment picked up in the final
quarter. For Services, demand for
daily services was strong throughout
the year. For upgrades, the strong
demand slowed down in the third
quarter, however slightly picking up in
the final quarter of the year.
In China, the coronavirus-related
restrictions and lockdowns affected
market activity. In the latter part of
the year, a slowdown in the architec-
tural market was noted. Given the
challenging market environment,
demand for high-end Insulating
Glass machines continued, although
somewhat slowing down. For Heat
Treatment, the market continued to
be soft. Elsewhere in the APAC area,
demand was subdued. In services
operations, activity improved in the
second half of the year, as many
countries opened up for travel.
Automotive glass
After an active first quarter of the year
with good investment activity, the
second quarter showed a slowdown.
However, market activity steadily
picked up in the third quarter and the
positive development continued into
the final quarter.
Automotive production still faced
difficulties due to supply chain short-
ages and regional factors, such as
Russia’s invasion of Ukraine and the
coronavirus-related restrictions in
China. Increased caution over new
investments was visible, causing
delays and some postponements
regarding new machinery projects.
Despite higher-than-usual market
uncertainty, the general market senti-
ment remained positive, with service
activity steadily improving throughout
the year.
No major changes were observed
in the display market. Automotive dis-
plays once again showed increasing
market activity, but orders were still at
a low level.
Operating environment in the regions
In Europe, the market was very slow
as the automotive glass industry
consolidates. However, some signs of
slightly improving markets were visible
towards the end of the year.
In North America, the market
continued to be good outside of the
traditional automotive market, i.e. for
special products such as recreational
vehicles (RVs) and heavy vehicles.
Typically, orders from North American
customers are for highly customized
solutions, taking advantage of Glas-
ton’s flexibility and ability to respond
to the customers’ special require-
ments. In the latter part of the year,
cautious signs of market recovery in
South America were seen.
In China, where the market is more
driven by the classic automotive and
display industries, market activity
continued at a good level and was
clearly supported by the company’s
decision to establish the production
of standard pre-processing automo-
tive lines in the country.
Glaston Annual Review 2022 66
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Orders received, EUR million 1–12/2022 1–12/2021 Change%
Heat Treatment 95.1 89.0 6.9%
Insulating Glass 126.6 95.0 33.3%
Automotive & Display 30.4 31.2 -2.4%
Segments, total 252.1 215.1 17.2%
Unallocated and eliminations 0.9 1.1 -13.5%
Glaston Group total 253.0 216.2 17.0%
The order book stood at EUR 138.3 (94.8) million at the end of the year. The Heat
Treatment order book totaled EUR 54.1 (45.6) million, representing 39% of the
order book, Insulating Glass EUR 78.7 (38.5) million, or 57%, and Automotive &
Display EUR 5.5 (10.7) million, or 4% of the order book.
Order book, EUR million 31.12.2022 31.12.2021 Change%
Heat Treatment 54.1 45.6 18.5%
Insulating Glass 78.7 38.5 104.4%
Automotive & Display 5.5 10.7 -48.5%
Segments total 138.3 94.8 45.8%
Glaston Group total 138.3 94.8 45.8%
Financial development of the group
Orders received and order book
Orders received in the financial year 2022 amounted to EUR 253.0 (216.2) million,
up 17% compared to the corresponding period in 2021. Order intake for Heat
Treatment equipment and services was up 7% and totaled EUR 95.1 (89.0) million
with good demand for flat tempering and flat lamination technology throughout
the year. The Insulating Glass equipment and services order intake was up 33%
totaling EUR 126.6 (95.0) million with the EUR 31 million deal for multiple insulating
glass lines, recorded in Q3, significantly contributing to the outcome. For Auto-
motive & Display equipment and services, the order intake was on the same level
as in the previous year and totaled EUR 30.4 (31.2) million, with America and China
as the most active markets. Total Services business order intake increased by 7%
in the period.
Net sales
The financial year 2022 net sales totaled EUR 213.5 (182.7) million. Net sales in the
Heat Treatment segment increased by 14% and totaled EUR 85.0 (74.7) million.
Net sales in the Insulating Glass segment increased by 10% and were EUR 90.1
(81.6) million. In the Automotive & Display segment, net sales totaled EUR 37.5
(25.6) million and increased by 46%. In 2022, the Services business grew its net
sales by 14%.
Net sales, EUR million 1–12/2022 1–12/2021 Change%
Heat Treatment 85.0 74.7 13.9%
Insulating Glass 90.1 81.6 10.4%
Automotive & Display 37.5 25.6 46.4%
Segments total 212.6 181.9 16.9%
Unallocated and eliminations 0.9 0.8 13.7%
Glaston Group total 213.5 182.7 16.9%

The financial year 2022 comparable EBITA amounted to EUR 13.6 (11.1) million,
i.e. 6.4 (6.1)% of net sales. In the full year, EBITA improved mainly due to volume
increase and improved margin in the services business. Also, higher other oper-
ating income contributed to the outcome. The comparable operating result was
EUR 9.9 (6.6) million, i.e. 4.6 (3.6)% of net sales. The Group’s operating result was
EUR 7.6 (5.1) million. Items affecting comparability totaled EUR -2.3 (-1.5) million
and were mainly related to the termination of operations in Russia, the Automo-
tive standard products production transfer to China and expensed cloud-com-
puting investments. Financial income and expenses amounted to EUR -2.5
(-3.5) million. The result before taxes was EUR 4.7 (1.2) million. The result for the
financial year was EUR 3.1 (1.1) million. Earnings per share were EUR 0.037 (0.013)
and comparable earnings per share were EUR 0.074 (0.051).
Glaston Annual Review 2022 67
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
EUR million 1–12/2022 1–12/2021 Change%
Operating result 7.6 5.1 49.7%
Items affecting comparability
(1
2.3 1.5 55.6%
Comparable EBIT 9.9 6.6 51.0%
Operating result 7.6 5.1 49.7%
Amortization and purchase price
allocation
(1
3.7 4.5 -18.2%
EBITA 11.3 9.6 17.8%
Items affecting comparability
(1
2.3 1.5 55.6%
Comparable EBITA 13.6 11.1 22.8%
% of net sales 6.4% 6.1%
(1
+ cost, - income
Financial development of the reporting segments
Heat Treatment reporting segment in brief:
• Market activity at a good level throughout the year
• Orders received up 7% supported by the healthy demand environment and
good investment activity
• Net sales up 14%, mainly due to the good order intake and services growth
• Profit improved due to higher volume and increased margin

EUR million  1–12/2021 Change%
Orders received 95.1 89.0 6.9%
of which service operations 29.0 28.8 0.8%
of which service operations, % 30.5% 32.4%
Order book at end of period 54.1 45.6 18.5%
Net sales 85.0 74.7 13.9%
of which service operations 31.0 27.7 12.2%
of which service operations, % 36.5% 37.1%
Comparable EBITA 5.1 3.4 52.4%
Comparable EBITA, % 6.1% 4.5%
Operating result (EBIT) 2.3 0.6 288.3%
Operating result (EBIT), % 2.7% 0.8%
Insulating Glass reporting segment in brief:
• Strong market activity resulting in very good order intake
• Strong order backlog at EUR 78.7 million
• Net sales up 10%
• Volume and other operating income impacted positively on profitability

EUR million 1-12/2022 1-12/2021 Change%
Orders received 126.6 95.0 33.3%
of which service operations 27.3 24.5 11.6%
of which service operations, % 21.6% 25.8%
Order book at end of period 78.7 38.5 104.4%
Net sales 90.1 81.6 10.4%
of which service operations 28.2 24.7 14.5%
of which service operations, % 31.3% 30.2%
Comparable EBITA 6.8 6.5 4.3%
Comparable EBITA, % 7.5% 8.0%
Operating result (EBIT) 4.9 4.6 6.3%
Operating result (EBIT), % 5.4% 5.6%
Glaston Annual Review 2022 68
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Automotive & Display reporting segment in brief:
• Slightly improving market activity in the latter part of the year
• Order intake on the same level as in the previous year
• Net sales improved by 46% supported by higher machine order intake
Automotive & Display 
EUR million 1-12/2022 1-12/2021 Change%
Orders received 30.4 31.2 -2.4%
of which service operations 16.1 14.6 10.5%
of which service operations, % 53.0% 46.8%
Order book at end of period 5.5 10.7 -48.5%
Net sales 37.5 25.6 46.4%
of which service operations 17.1 14.4 18.7%
of which service operations, % 45.6% 56.2%
Comparable EBITA 1.5 1.2 28.0%
Comparable EBITA, % 4.1% 4.7%
Operating result (EBIT) 0.3 -0.1 420.7%
Operating result (EBIT), % 0.8% -0.4%


At the end of December, Glaston
Group’s balance sheet total was EUR
194.9 (197.3) million. Intangible assets
amounted to EUR 76.1 (75.8) million,
of which goodwill was EUR 58.7 (58.6)
million. At the end of the period, prop-
erty, plant and equipment amounted
to EUR 22.6 (22.9) million and invento-
ries to EUR 32.0 (27.3) million. In order
to ensure the best possible customer
service in times of unpredictable
delivery times for components, inven-
tories have been increased.
The comparable return on capital
employed (ROCE) was 10.5 (6.1)%.
At the end of December, the com-
pany’s net gearing was 19.5 (26.9)%.
The equity ratio was 44.0 (42.3)%. Net
interest-bearing debt totaled EUR 13.3
(18.3) million.
In the financial year, Glaston’s cash
flow from operating activities was EUR
10.2 (19.3) million. Working capital was
stable whereas in the previous period,
it clearly contracted. Cash flow from
investing activities was EUR -5.5 (-3.1)
million and cash flow from financing
activities was EUR -11.2 (-13.8) million.
Capital expenditure and product
development
Glaston Group’s gross capital expend-
iture in the financial year totaled EUR
5.8 (5.2) million and was primarily
related to product development.
Depreciation and amortization of
property plant, and equipment, and
of intangible assets, totaled EUR -7.7
(-7.9) million.
Glaston continued to execute the
strategy cornerstone initiative Inno-
vate with customers to win. Based on
customer feedback, Glaston prioritized
its development initiatives to meet
customer needs. In addition, R&D pro-
cesses were improved to serve future
growth and technology.
In Heat Treatment, the focus was to
further develop the new self-learning
Autopilot for tempering and lamination
lines. The Autopilot was launched to a
broader market in connection to the
glasstec 2022 exhibition in September.
To further support the new struc-
tural interlayers in laminated glasses,
Glaston introduced a new convection
control system for lamination lines that
enables high-quality production of
these glass types. With growing indus-
try requirements for higher glass qual-
ity and zero tolerance of clearly visible
glass defects, the AI-based solution
White Haze Scanner was launched to
the market.
To support the automatization of
the heat treatment processes, further
development steps were taken in auto-
mation by developing new AI-based
online measurement devices.
In Insulating Glass Technologies,
development focused on finalizing
the MULTI’ARRISSER arrissing machine
product family and several machine
deliveries were completed. To better
match customers’ demand for dou-
ble-glazing units, the development of
an enhanced offering to the sealing
robot family with mid-segment sealing
machines was initiated.
In digitalization, Glaston continued to
work with industry partners to match
the need for open communication
and integration between machinery by
enhancing the capabilities to connect
machines to each other by using open
communication platforms and cloud-
based connections.
In automotive, the next-generation
pre-processing line CHAMP EVO and
MATRIX EVO bending furnace were
introduced in the latter part of the
year. The CHAMP EVO has enhanced
Glaston Annual Review 2022 69
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
its modularity for customer-spe-
cific requirements and increased
its dynamic performance. In the
final quarter, the manufacturing of a
MATRIX EVO bending furnace for R&D
testing and prototyping purposes
started at Glaston’s plant in Tampere,
Finland, with first deliveries already
scheduled.
In the financial year 2022, research
and product development expendi-
ture, excluding depreciation, totaled
EUR 9.2 (7.0) million, of which EUR 3.0
(1.8) million was capitalized. Research
and product development expend-
iture amounted to 4.3 (3.8)% of net
sales.
Organization & personnel
On 31 December 2022, Glaston Group
had a total of 783 (750) employees. At
the end of December, the Heat Treat-
ment segment employed 292 (283)
people, the Insulating Glass segment
370 (359) people and the Automotive
& Display segment 119 (103) people.
Of the Group’s personnel, 35%, i.e.
272 employees, worked in Germany,
25%, i.e. 195, worked in Finland, 13%
worked elsewhere in the EMEA area,
21% worked in Asia and 6% worked
in the Americas. In the full year 2022,
the Group had an average of 775 (731)
employees. Total personnel costs
amounted to EUR 65.4 (58.4) million, of
which salaries and wages amounted
to EUR 54.7 (48.6) million.
Due to the Russian invasion of
Ukraine in February 2022, Glaston
made the decision to cease its opera-
tions in Russia and business with Rus-
sian customers. In the second quarter,
Glaston’s operations in Russia were
discontinued, and all employment con-
tracts, six in total, were terminated.
Throughout the year, safety and
well-being of the personnel have been
prominent themes. The first group-
wide safety week was organized in
May with various initiatives to further
develop safety at work at all Glaston
sites.
In the latter part of the year, the
first group-wide One Glaston survey,
measuring the strategic employee
engagement rate, was conducted. In
total, 71% of the employees across the
organization answered the survey. The
engagement rate was 70. The non-fi-
nancial strategic target is an engage-
ment rate of over 75 out of 100 by 2025.
Changes in the Executive
Management Group
General Counsel and member of
Glaston's Executive Management
Group, Taina Tirkkonen resolved to
leave Glaston and her employment
ended on 31 December 2022. On 20
December 2022, the appointment of
Kaisa Latva as General Counsel and
a member of the Executive Manage-
ment Group was announced. She
will take up her position on 1 April
2023 and reports to President & CEO
Anders Dahlblom.
Strategy
Glaston’s revised strategy and finan-
cial targets for 2021–2025 were
announced in August 2021. In 2022,
the strategy implementation pro-
ceeded according to plans. In line with
Glaston’s strategic focus to grow its
business in China and improve opera-
tional efficiency, the plan to establish
production for Automotive standard
pre-processing equipment in Tianjin
was disclosed in June.
Since the announcement, activ-
ities for ramping up the production,
enhancing the product-specific
production skills as well as setting up a
local automotive supply chain network
have proceeded in line with the plans.
Demonstrating the viability of the
strategic initiative, the first orders for
the new Automotive pre-processing
CHAMP EVO lines were received in the
third quarter.
Further strengthening its position in
China, Glaston entered the market of
tempering technologies for solar panel
production and introduced the new flat
tempering line for solar panel temper-
ing. Manufacturing of the CHF Solar
line proceeded according to plan at
the factory in Tianjin, China in the latter
part of the year. A total of five solar lines
will be delivered in the first half of 2023.

development
For the financial strategic targets, net
sales increased by 17% compared to
the previous year and were well on
track with the set target. EBITA margin
developed positively to 6.4%. The
return on capital employed (ROCE)
increased to 10.5% (6.1%).
Glaston Annual Review 2022 70
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
project and their willingness to rec-
ommend Glaston. In 2022, NPS was 53.
In 2023, measurement and scope will
be further developed.
Sustainability
As the innovative frontrunner in its
industry, Glaston’s ambition is to con-
tinue being at the forefront of devel-
oping the industry towards a more
sustainable future.
In 2022, Glaston has been focusing
on reducing the carbon footprint of its
own operations by investing in energy
efficiency in manufacturing operations
and increasing the share of renewable
electricity used in its manufacturing
operations. In Glaston’s Swiss pro-
duction unit, renewable electricity
has been the main source of energy
already for years. To further reduce
their CO
2
emissions, the heat distribu-
tion system was renewed in the latter
part of the year. This will notably reduce
the consumption of gas. Additionally,
close to 400 solar panels with a total
capacity of over 150 kWp were installed
on the roof of the production unit. The
solar panels have been producing
energy for the factory's own use since
November and from the beginning of
December electricity was also fed into
the grid.
In 2022, Glaston has calculated the
climate impact the company creates
in its downstream and upstream value
chains (scope 3). The calculation based
on 2021 data showed that the majority,
around 99%, of all emissions related to
Glaston's activities are generated in
the company's value chain. The most
significant sources of emissions are the
use of sold products (84%) and pur-
chased goods and services (15%). Con-
stituting the starting point for future
work, the results enable the company
to better identify the measures that will
support our efforts to strengthen its
sustainable business.
In addition to the strategic non-fi-
nancial targets, Glaston has set other
sustainability targets. To meet the
targets set for the strategy period, a
roadmap was created and the indica-
tors refined. The plan and the timetable
Financial targets by 2025 2022 2021
Net sales – annual average clearly exceeding the
addressable equipment market growth +17% +7%
EBITA – 10% 6.4% 6.1%
ROCE – 16% 10.5% 6.1%
 2022 2021
Net promoter Score (NPS) over 40 53 -
Lost time injury frequency rate (LTIFR) zero 3.9 3.3
Employee engagement over 75 out of 100 70 -
Reduction of scope 1&2 CO
2
emissions in relation to
net sales by 50% from the 2020 level -57% -13%
For the non-financial strategic targets,
the lost time injury frequency rate
was 3.9 (3.3) as the number of acci-
dents increased by one to a total of
six compared to five in 2021. Glaston’s
CO
2
emissions (scope 1+2) were 1,491
(2,608) tons of CO
2
and CO
2
intensity
(tons of CO
2
per millions of euros in
net sales) was 7.0 (14.3), mainly due to
the switch to renewable electricity in
Finland and Germany. Measurement
of the strategic employee engage-
ment target started in the latter part
of the year and the engagement rate
was 70. In 2022, the measurement of
the group-wide customer satisfaction
target, Net Promoter Score (NPS),
started. The customer satisfaction
survey was sent out for delivered
machine projects and the customers
were asked to rate the success of the
for the measures were approved by
the company's executive management
group and the Board of Directors.
As part of the company’s corpo-
rate responsibility work, Glaston’s
new financing agreement is linked
to sustainability targets and the loan
margin of the new financing agree-
ment is adjusted by the achievement of
Glaston's sustainability objectives annu-
ally. The objectives are safety at work,
measured as a decrease of lost time
accidents (lost time injury frequency
rate) and CO
2
emissions (scope 1 & 2)
in relation to net sales.
In the review period, Glaston was
re-certified as a ‘Nasdaq ESG Transpar-
ency Partner’.
Glaston Annual Review 2022 71
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Shares and shareholders
Glaston Corporation’s shares are listed on the Nasdaq Helsinki Small Cap list.
The trading code is GLA1V and the ISIN code is FI4000369657. Each share entitles
its holder to one vote and voting right. Glaston Corporation’s share capital on 31
December 2022 was EUR 12.7 (12.7) million.
1.1.-31.12.2022
No. of shares
and votes
Share turnover,
EUR million
GLA1V 84,289,911 7.8
Highest Lowest Closing Average price
*)
Share price 1.19 0.71 0.90 0.95
31.12.2022 31.12.2021
Market value 76.0 96.1
Number of shareholders 7,593 7,427
Foreign ownership, % 26.8 27.3
*) trade-weighted average
Glaston Annual Review 2022 72
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Shareholder
Number of
shares
% of shares
and votes
1 Ahlstrom Capital Bv 22,245,716 26.4%
2 Hymy Lahtinen Oy 10,300,161 12.2%
3
Varma Mutual Pension Insurance Company
Company
6,318,061 7.5%
4 Ilmarinen Mutual Pension Insurance 6,162,502 7.3%
5 OP-Finland Small Firms Fund 5,092,416 6.0%
6 Nordea Nordic Small Cap Fund 3,194,237 3.8%
7 Päivikki and Sakari Sohlberg Foundation 1,454,055 1.7%
8 Säästöpankki Pienyhtiöt 969,012 1.1%
9 Sijoitusrahasto Aktia Capital 900,000 1.1%
10 Mininvest Oy 889,340 1.1%
10 largest shareholders total 57,525,500 68.2%
Nominee registered shareholders 1,585,782 1.9%
Other shares 25,178,629 29.9%
Total 84,289,911 100.0%
Ownership distribution 31 December, 2022
Shares total
% of shares
and votes
Households 20,359,953 24.2%
Public sector institutions 12,920,563 15.3%
Financial and insurance institutions 9,600,638 11.4%
Corporations 15,715,628 18.6%
Non-profit institutions 1,482,744 1.8%
Foreign countries 22,624,603 26.8%
Total 82,704,129 98.1%
Nominee registered 1,585,782 1.9%
Total 84,289,911 100.0%
Total 84,289,911 100.0%
10 largest shareholders 31 December, 2022 Shareholders by share ownership 31 December, 2022
Number of shares
Number of
shareholders
% of
shareholders Shares total
% of shares
and votes
1-100 1,827 24.06% 88,669 0.11%
101-1,000 3,258 42.91% 1,446,389 1.72%
1,001-10,000 2,146 28.26% 6,799,438 8.07%
10,001-100,000 315 4.15% 8,141,501 9.66%
100,001-99,999,999 47 0.62% 67,813,914 80.45%
Total 7,593 100,00% 84,289,911 100.00%
Number of shares
issues 84,289,911 100.00%
The share ownership of the Board of Directors and the Executive Management
Group is presented in Note 7.1 of the consolidated financial statements.
Glaston Annual Review 2022 73
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Share-based incentive plan
On 27 January 2022, Glaston decided
on the share-based incentive plan
2022−2026 for the key employees
in accordance with the terms and
conditions materially corresponding
to the terms and conditions of the
share-based incentive plan 2019−2023.
The Performance Share Plan com-
prises three performance periods,
calendar years 2022−2024, 2023−2025
and 2024−2026. The Board of Directors
resolves on the plan’s performance
criteria and the performance levels at
the beginning of each performance
period. The key employees will receive
the company’s shares as a reward, if
the performance levels of the per-
formance criteria, set by the Board of
Directors, are achieved.

The potential reward of the per-
formance period 2022−2024 will be
based on the Glaston Group’s com-
parable EBITA and Service Net Sales
during the period of 1 January 2022−31
December 2024. If the performance
levels of the performance criteria for
the performance period 2022−2024
are achieved in full, the payable
rewards correspond to a maximum
total of 700,000 Glaston Corporation
shares, including also the proportion
to be paid in cash.
The potential reward from the
performance period 2022−2024 will
be paid in 2025 in a manner resolved
by the Board of Directors, either partly
in the company’s shares and partly
in cash, in which case the cash pro-
portion is intended to cover taxes
and tax-related costs arising from the
reward to the key employee, or fully in
cash.
The reward to be paid on the basis
of the plan may be reduced if the
reward cap set by the Board of Direc-
tors is reached.
In total 16 key persons, including the
CEO and President and the members
of the Executive Management Group,
belong to the target group of the plan
in the performance period 2022–2024.
Governance
Annual General Meeting 2022
The Annual General Meeting of Glas-
ton Corporation was held on 12 April
2022 in Helsinki. The General Meeting
adopted the financial statements and
consolidated financial statements for
the financial period from 1 January to
31 December 2021 and discharged the
members of the Board of Directors
and the President and CEO from liabil-
ity for the financial year from 1 January
to 31 December 2021.
In accordance with the proposal
of the Board of Directors, the General
Meeting resolved that a return of capi-
tal of EUR 0.03 per share be distributed
for the financial year ended 31 Decem-
ber 2021. The return of capital was paid
to shareholders who were registered in
the Company’s register of sharehold-
ers, maintained by Euroclear Finland
Ltd, on the record date for payment,
14 April 2022. The return of capital was
paid on 26 April 2022.
Adoption of the Remuneration Report
for governing bodies
In accordance with the proposal of the
Board of Directors, the General Meet-
ing resolved to adopt the Remunera-
tion Report for the governing bodies.
The resolution on the adoption of the
Remuneration Report is advisory.
Composition of the Board of Directors
In accordance with the proposal of
the Shareholders’ Nomination Board,
the number of the members of the
Board of Directors was resolved to be
seven. The General Meeting resolved,
in accordance with the proposal of
the Shareholders’ Nomination Board,
to re-elect as members of the Board
of Directors, Mr. Veli-Matti Reinikkala,
Mr. Sebastian Bondestam, Mr. Antti
Kaunonen, Ms. Sarlotta Narjus, Ms.
Arja Talma, Mr. Tero Telaranta and Mr.
Michael Willome. The Board of Direc-
tors was elected for a term continu-
ing until the close of the next Annual
General Meeting.
Remuneration of the members of the
Board of Directors
In accordance with the proposal of
the Shareholders’ Nomination Board,
the General Meeting resolved that
the annual fee of the members of
the Board of Directors are the follow-
ing: Chair of the Board of Directors is
paid an annual fee of EUR 70,000, the
Deputy Chair an annual fee of EUR
43,000 and the other members of the
Board of Directors an annual fee of
EUR 33,000.
In accordance with the proposal
by the Nomination Board, the General
Meeting resolved that a member of the
Board of Directors may, at his/her dis-
cretion, choose to receive the annual
fixed remuneration partly in com-
pany shares and partly in cash so that
approximately 40% of the annual fixed
remuneration is paid in Glaston Corpo-
ration’s shares. The number of shares
forming the above remuneration por-
tion, which would be payable in shares,
will be determined based on the share
value in the stock exchange trading
maintained by Nasdaq Helsinki Ltd, cal-
Glaston Annual Review 2022 74
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
culated as the trade volume weighted
average quotation of the share during
the one-month period immediately
following the date on which the interim
report of January-March 2022 of the
company is published.
In addition, the General Meeting
resolved that in accordance with the
proposal of the Shareholders’ Nom-
ination Board, meeting fees shall be
paid for each meeting of the Board of
Directors that a Member of the Board
has attended, so that the Chair of the
Board is paid EUR 800 for meetings
held in the Chair’s home country and
EUR 1,500 for meetings held elsewhere
and the other Members of the Board
are paid EUR 500 for meetings held
in their home country and EUR 1,000
for meetings held elsewhere. For per
capsulum Board Meetings, half of
the normal meeting fee will be paid.
Furthermore, it was resolved that each
Member of the Board will be compen-
sated for travel and accommodation
costs and direct expenses arising from
their work for the Board of Directors
in line with the Company’s normal
practice.
In addition, the General Meeting
resolved in accordance with the pro-
posal of the Shareholders’ Nomination
Board that the meeting fee for the
Remuneration and Audit Committees
remain unchanged and that all mem-
bers of the Audit and Remuneration
Committees will be paid a meeting
fee of EUR 500 for each meeting
attended. In addition to the meeting
fee, the Chair of the Audit Commit-
tee will be paid an annual fee of EUR
10,000 and the Chair of the Remu-
neration Committee will be paid an
annual fee of EUR 7,500.
Auditor
In accordance with the proposal of
the Board of Directors, the General
Meeting elected the authorized public
accounting firm KPMG Oy Ab as the
Company’s auditor. The auditing
firm has announced that the auditor
in charge of the audit is Authorised
Public Accountant Lotta Nurminen. In
accordance with the proposal of the
Board of Directors, the General Meet-
ing decided that the remuneration of
the auditor shall be paid based on a
reasonable invoice approved by the
Company.
Authorization to the Board of Directors
to decide on the repurchase as well as
on the acceptance as pledge of the
company’s own shares
In accordance with the proposal of
the Board of Directors, the General
Meeting authorized the Board of
Directors to decide on the repur-
chase as well as on the acceptance as
pledge of the Company's own shares
in one or several tranches as follows.
The number of own shares to be
repurchased or accepted as pledge
shall not exceed 8,000,000 shares,
which corresponds to approximately
10% of all registered shares in the
Company, subject to the provisions
of the Finnish Companies’ Act on the
maximum amount of shares owned
by or pledged to the company or its
subsidiaries. Only the unrestricted
equity of the Company can be used
to repurchase own shares on the basis
of the authorization. Own shares can
be repurchased at a price formed in
public trading on the date of the repur-
chase or at a price otherwise formed
on the market.
The Board of Directors decides
how own shares will be repurchased
or accepted as pledge. Own shares
can be repurchased otherwise than in
proportion to the shareholdings of the
shareholders (directed repurchase).
The authorization is effective until 30
June 2023 and it revokes correspond-
ing earlier authorizations.
Authorization to the Board of Directors
to decide on the issuance of shares,
as well as the issuance of options and
other rights entitling to shares
In accordance with the proposal
of the Board of Directors, the Gen-
eral Meeting authorized the Board
of Directors to resolve one or more
issuances of shares which contain the
right to issue new shares or dispose
of the shares in the possession of
the Company and to issue options or
other rights entitling to shares pur-
suant to Chapter 10 of the Finnish
Companies Act. The authorization
consists of up to 8,000,000 shares in
the aggregate representing approxi-
mately 10% of the current number of
shares in the Company.
The authorization does not exclude
the Board of Directors' right to decide
on a directed issue of shares. The
authorization can 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 was author-
Glaston Annual Review 2022 75
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
ized to resolve on all terms and condi-
tions of the issuance of shares, options
and other rights entitling to shares as
referred to in Chapter 10 of the Com-
panies Act, including the payment
period, grounds for the determination
of the subscription price and subscrip-
tion 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 (contribution
in kind).
The authorization is effective until 30
June 2023 and it revokes correspond-
ing earlier authorizations.
Organization of the Board of Directors
Convening after the Annual Gen-
eral Meeting, the Board of Directors
re-elected Veli-Matti Reinikkala as
the Chair of the Board and Sebastian
Bondestam as Deputy Chair of the
Board. In addition, the composition of
the Board committees was resolved
to be as follows:
Audit Committee: Arja Talma (Chair),
Veli-Matti Reinikkala, Tero Telaranta
Compensation Committee: Sebas-
tian Bondestam (Chair), Antti Kau-
nonen, Sarlotta Narjus, Michael Wil-
lome.
On 15 December 2022, the Board of
Directors decided on changes in the
composition of the Board of Directors’
Audit Committee and People and
Remuneration Committee. Veli-Matti
Reinikkala, a member of the Audit
Committee, was elected as the Chair
of the People and Remuneration Com-
mittee, while Sarlotta Narjus, a mem-
ber of the People and Remuneration
Committee, was elected as a member
of the Audit Committee. The changes
entered into force on 1 January 2023.
Shareholders’ Nomination Board
On 9 September 2022, Glaston
announced the composition of the
Shareholders Nomination Board.
The Shareholders’ Nomination
Board comprises one member
appointed by each of the four largest
shareholders of Glaston Corporation.
The shareholders entitled to appoint a
member are determined on the basis
of the shareholders’ register of the
Company maintained by Euroclear
Finland Ltd. on the first working day in
September.
Based on the ownership on 1 Sep-
tember 2022, the following persons
have been nominated as members of
the Nomination Board: Lasse Heinonen
(Ahlstrom Capital BV), Jaakko Kurikka
(Hymy Lahtinen Oy), Pekka Pajamo
(Varma Mutual Pension Insurance
Company) and Esko Torsti (Ilmarinen
Mutual Pension Insurance Company).
Veli-Matti Reinikkala, Chair of the Com-
pany’s Board of Directors, has served
as an advisory member of the Nomina-
tion Board.
In its organizing meeting on 9 Sep-
tember 2022, the Nomination Board
elected Lasse Heinonen amongst its
members as the Chair.
On 14 December 2022, the Share-
holders’ Nomination Board disclosed
its proposal concerning the Board
composition and remuneration to the
AGM 2023. According to the proposal,
the Nomination Board proposed
that the number of members of the
Board of Directors would be seven
and that Sebastian Bondestam, Antti
Kaunonen, Sarlotta Narjus, Veli-Matti
Reinikkala, Arja Talma, Tero Telaranta
and Michael Willome be re-elected
as Members of the Board of Direc-
tors. The Nomination Board proposed
that the annual remuneration of the
Members of the Board of Directors
would remain unchanged and be as
follows: Chair EUR 70,000, Vice Chair
EUR 43, 000 Members EUR 33,000.
Glaston Annual Review 2022 76
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Report on non-financial information 2022
Sustainable business has been set as
a focus area in Glaston’s strategy for
2021–2025. Non-financial targets have
been introduced alongside financial
targets. They emphasize the sustain-
ability of the company’s business and
the strategic importance of environ-
mental, social and governance (ESG)
commitments. Glaston’s material
responsibility themes are: responsi-
bility in own operations (personnel,
environment, responsible business),
responsible procurement, responsi-
ble partner and responsible member
of society. This report includes the
targets and key indicators for each
material aspect of Glaston for the pur-
poses of managing sustainability work.
Sustainability will be discussed
in more detail in Glaston’s Annual
Review, which will be published in
week 11.
Glaston’s business model and
value creation
Glaston provides glass processing
machines and related services to the
architectural glass, automotive glass,
solar and display industries. Glaston’s
portfolio includes heat treatment
and insulating glass technologies and
services in the architectural market
and pre-processing technologies in
the automotive and display industry
markets, as well as related services.
Glaston has the most extensive prod-
uct portfolio in the sector.
As an innovative frontrunner in its
industry, Glaston seeks to drive the
industry toward a more sustainable
future. The majority of the company’s
business concerns customers oper-
ating in the architecture segment. The
key technologies of the company’s
products facilitate improving the energy
efficiency and safety of buildings.
Glaston has sales and service offices
and production in nine countries around
the world. At the end of 2022, the com-
pany had four production plants: Tam-
pere in Finland; Neuhausen in Germany,
Bützberg in Switzerland, and Tianjin in
China. At the end of the year, the com-
pany had 783 employees.
Glaston wants to have a positive
impact on the societies in which it
operates. The company creates value
for its customers with its energy-effi-
cient and reliable products and services
in particular. As an employer and buyer
of goods and services, the company
creates prosperity and jobs locally. In
addition, the company creates financial
value as a tax payer in the countries
in which it operates. Glaston engages
in close cooperation with different
research institutions and universities,
which creates societal value through
product development and innovation. In
2022, Glaston paid shareholders a return
of capital of EUR 2.5 million. Glaston paid
EUR 0.7 million in taxes.
Responsibility at Glaston
In accordance with Glaston’s strat-
egy, the company’s objective is to
build a better tomorrow through safer,
smarter, and more energy-efficient
glass solutions. As environmental
awareness increases, the demand
for more energy-efficient and envi-
ronmentally more sustainable glass
solutions will increase. Glaston con-
tinuously develops its product and
service offering to be able to meet
clients’ increasing need for reducing
the material and energy consumption
and emissions of their production.
In Glaston’s updated strategy, sus-
tainable business is a key focus area,
and non-financial targets have been
introduced alongside the financial
targets. The new non-financial targets
promoting sustainable business for the
strategy period 2021–2025 are:
• Customer satisfaction (Net Pro-
moter Score, NPS) over 40.
• Group-wide occupational safety tar-
get: zero lost-time accidents (LTA),
(progress is measured by accident
frequency, LTIFR).
• Employees’ commitment rate over
75 (out of 100).
• Glaston’s CO
2
emissions (Scope 1 +
2) in relation to net sales 50% lower
than in 2020. In 2020, greenhouse
gas emissions amounted to 2,777
tons of carbon dioxide, with net
sales of EUR 170.1 million.
Material responsibility topics
Glaston updated the material sus-
tainability topics in late 2021, paying
particular attention to the non-finan-
cial targets of the updated strategy.
The material themes are: responsi-
bility in own operations (personnel,
environment, responsible business),
responsible procurement, responsi-
ble partner and responsible member
of society. In connection with the
materiality assessment, the most sig-
nificant climate and biodiversity risks
Glaston Annual Review 2022 77
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
associated with Glaston’s operations
and caused by them were also identi-
fied. A roadmap was prepared and the
indicators and targets connected to
the materiality themes were specified
further during 2022.
The results for 2022 are reported in
more detail in the Annual Review.
Policies and due diligence
At Glaston, responsibility is part of
our day-to-day operations. Glaston is
committed to complying with national
and international law, regulations and
commonly accepted operating meth-
ods in full in everything it does.
Glaston has prepared a Code of
Conduct to be able to do more than
the required minimum. The Code,
approved by the company’s Board of
Directors, presents Glaston’s ethical
principles in a clear way, and it guides
all of the company’s operations. The
Code of Conduct lays down the com-
pany’s requirements and expectations
with regard to responsible and ethical
operations. The Code guides Glas-
ton’s employees in their day-to-day
work with their colleagues and clients,
suppliers and other stakeholders. The
matters discussed include workplace
practices, responsible business prac-
tices, environmental matters and sus-
tainability. Training in the Code is the
key indicator of responsible business,
with the coverage target set at 100
percent. The training must be com-
pleted once every two years. In 2022,
more than 93 percent of employees
had completed the Code of Conduct
training. The Code of Conduct training
is also part of the orientation of new
employees.
The Code of Conduct also includes
a commitment to respecting human
rights; all forms of harassment and
other inappropriate treatment are
strictly prohibited. Glaston is commit-
ted to preventing bribery and cor-
ruption in its day-to-day operations.
Every Glaston employee should report
any misdemeanors or violations of
the Code of Conduct. Glaston investi-
gates all reported incidents promptly
and confidentially and takes appro-
priate action based on the findings of
the investigation. During 2022, a total
of five suspected misdemeanors or
violations of the Code of Conduct
were reported. In addition to the Code
of Conduct, a separate Supplier Code
of Conduct has been published and is
attached to purchase agreements.
The Code of Conduct is sup-
plemented by Group-level policies
approved by the Board of Directors:
anti-bribery and anti-corruption
policy, CAPEX policy, credit manage-
ment policy, disclosure policy, Group
Treasury policy, information security
policy, tax policy, and risk manage-
ment policy. The Group-level policies
are supplemented by local occu-
pational safety and health policies,
among others. Occupational safety
and health is managed and developed
in the company’s local units in accord-
ance with local legislation.
Information security has become
increasingly important, and particu-
lar attention has been paid to the
development of information security
in relation to both Glaston’s own and
its clients’ data. Glaston’s information
security policy was updated in 2022.
IT security is monitored and audited,
and Glaston’s Executive Management
Group and the Audit Committee of
the Board of Directors regularly review
information security matters and plan
and measures to manage risks. The
company uses a SOC (Security Oper-
ations Center) service for monitoring
information security events 24/7. No
significant information security inci-
dents were reported in 2022.
Glaston operates in accordance
with the ISO 9001 quality manage-
ment system in its assembly and
production units. In Finland, Glaston
manages environmental matters in
accordance with the ISO 14001 envi-
ronmental management system.
Glaston has a whistleblowing chan-
nel that employees can use to anon-
ymously report any breaches of the
Code of Conduct or other guidelines.
The Group-level guidelines are avail-
able on the company’s Intranet. Local
guidelines are available on the intranet
sites and shared networks of the local
offices. If necessary, they are distrib-
uted to the personnel as hardcopies
(personnel manual).
Risk management is an essential
part of Glaston’s management and
control system. The purpose of risk
management is to ensure the identifi-
cation, management and monitoring
of risks relating to business objectives
and functions. The principles and
operating method of risk manage-
ment are specified in the risk man-
agement guideline approved by the
company’s Board of Directors. The
leading principle of risk management
is the continuous, systematic and
appropriate development and execu-
tion of the risk management process,
aiming to comprehensively identify
and appropriately manage risks.
Management of sustainability
Sustainable business, environmental
and social responsibility, and good
corporate governance are included
Glaston Annual Review 2022 78
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
in the strategy approved by the Board
of Directors. Sustainable business
is promoted within a Group-wide
cornerstone project.
The development of the sustain-
ability agenda is promoted by the
Sustainability working group. The
group coordinates the development
of sustainable business at Glaston and
implements related practices. The
Group reports on the development to
the Group’s Executive Management
Group and Board of Directors.
Personnel and social
responsibility
At the end of 2022, Glaston had 783
employees (December 31, 2021: 750),
of whom 195 (184) worked in Finland.
The average number of employees
during the year was 775 (731). Person-
nel expenses totaled EUR 65.4 (58.4)
million in January–December.
Employees who are professional,
committed and feel well are Glaston’s
strength. Glaston has committed to
the continuous improvement of its
employees’ expertise and offering
them a safe and inspiring work envi-
ronment in which they can learn and
develop.
All Glaston employees must be
treated fairly and equally. Glaston is
committed to equality, and therefore
all harassment is prohibited. Glaston
respects the freedom of association
and recognizes the right to collective
bargaining.
At Glaston, people are treated in
an appreciating, polite and respect-
ful manner. The work environment is
based on mutual trust, and no harass-
ment, discrimination, threats, pressur-
ing or abuse is tolerated. Insulting and
inappropriate behavior is not tolerated.
Employees and candidates must be
treated and assessed based on their
work-related abilities, and no one may
be discriminated based on race, skin
color, nationality, ethnic origin, religion,
gender, sexual orientation, disability,
trade union membership or political
affiliations.
The company’s aim is for no cases
of workplace harassment to be
reported. All reported cases are inves-
tigated, and if it is found warranted,
the necessary action will be taken.
The parties involved will be informed
of the outcome of the process. One
suspected case of workplace har-
assment was reported in 2022, and
following the investigation, it resulted
in the termination of the employment
of the employee concerned.
Glaston’s updated strategy for
2021−2025 highlights occupational
safety and the commitment rate of
personnel as focus areas. The per-
sonnel commitment rate target set
by the company is for the rate to
increase to over 75 on a scale of 1–100
by 2025. The current situation of per-
sonnel commitment was measured in
2022 with an employer image survey,
and the commitment rate was 70.
The Group-level occupational safety
target is zero lost-time accidents.
In order to reach the target, safety
has been incorporated into the ways
of working. A safety working group,
comprising representatives of differ-
ent functions, works to manage and
develop safety. In 2022, the accident
frequency rate, or number of lost-
time accidents per one million hours
worked (LTIFR), was 3.9 (3.3).
Human rights
Glaston respects human rights and
basic labor rights according to the
United Nations Universal Declaration
of Human Rights, and the company
is committed to implementing the
United Nations Guiding Principles
on Business and Human Rights, the
United Nations Global Compact,
OECD’s Guidelines for Multinational
Enterprise and the International
Labour Organization’s Declaration of
Fundamental Principles and Rights at
Work. Glaston does not accept the
use of child or forced labor in its own,
suppliers or subcontractors opera-
tions.
Glaston operates globally and
therefore in a multicultural environ-
ment. Glaston’s Code of Conduct
includes a commitment to respecting
human rights. Any breaches of the
guidelines may be reported to Glas-
ton’s General Counsel at the desig-
nated e-mail address or anonymously
via Glaston’s Whistleblowing channel.
In accordance with its Code of
Conduct, Glaston treats its suppliers,
service providers and subcontrac-
tors fairly. In turn, Glaston expects
that they comply with the laws and
regulations and respect the principles
specified in the company’s Code of
Conduct. In 2022, no suspicions of vio-
lations of human rights were reported
in the company.
Anti-corruption and anti-bribery
In Glaston’s Code of Conduct, the
company undertakes to promote fair
competition and comply with legisla-
tion in all of its operations. The Code of
Conduct states that business rela-
tionships must be based on objective
criteria. Direct or indirect payments
must not be made or the company’s
funds transferred directly or indi-
rectly to any party in order to obtain
Glaston Annual Review 2022 79
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
inappropriate benefit. The Code of
Conduct requires avoiding conflicts of
interest and refusing all inappropriate
payments and benefits.
The purpose of Glaston’s anti-brib-
ery and anti-corruption policy is to
increase Glaston employees’ aware-
ness of the risk of corrupt payments, to
unequivocally prohibit the payment and
receipt of bribes, and to ensure that the
company conducts business honestly,
in accordance with ethical standards
and in compliance with anti-corruption
laws, rules and regulations.
In 2022, no bribery or suspicions of
corruption emerged in the company.
Environmental responsibility
The majority of Glaston’s environmen-
tal impacts are caused when clients
use Glaston technologies throughout
their lifecycle.
Glaston develops and designs its
machines to endure use at a high
utilization rate. Predictive and regular
maintenance and an extensive range
of upgrade products increase the
efficiency of production operations
and prolong the service life of the
machines. The long service lives of
Glaston’s glass processing machines,
up to 20 years, support the environ-
mental targets of sustainable devel-
opment.
The development of the energy
and material efficiency of products
is a continuous effort. Improving the
energy efficiency of the products
has been at the core of product
development work for a long time,
and as a result of the development
work, clients are able to process their
glass increasingly energy-efficiently.
In addition, the company invests in
digital and IoT-based solutions and
services in its product development.
They make it possible to optimize the
performance of the machine and
real-time client support without envi-
ronmentally burdening travel.
The safety of the use of Glaston
machines is based on the EU Machine
Directive and the EN standards men-
tioned therein. All Glaston machines
made in Europe comply with the said
EU Directive.
No major environmental accidents
or spillages were reported in 2022.
In Glaston’s own operations, the
biggest environmental impacts are
due to energy consumption and asso-
ciated emissions, waste and transport.
With regard to the use of machines,
the most significant environmental
aspect is the electricity consumption
of the machines.
Glaston is committed to reduc-
ing its CO
2
emissions (Scope 1 + 2)
in relation to net sales by 50 percent
from the level of 2020 by 2025. In 2022,
greenhouse gas emissions (Scope 1
& 2), calculated according to the GHG
Protocol, were1,491 (2,608) tCO
2
. As of
January 2022, the production facilities
in Finland and Germany switched to
renewable electricity, significantly
reducing their CO
2
emissions. In rela-
tion to net sales, emissions decreased
by 57% compared to 2021.
In 2022, the company calculated its
Scope 3 emissions, i.e. the value chain
emissions, for the first time. Consti-
tuting the starting point for future
work, the results enable the company
to better identify the measures that
will support its efforts to strengthen
sustainable business.
The EU taxonomy
The European Union’s Sustainable
Finance Classification System (EU
taxonomy) was published in 2020 and
contributes to the achievement of the
EU environmental goals by channe-
ling investments for the transition to a
climate-neutral and environmentally
sustainable economy.
The taxonomy includes six envi-
ronmental objectives and related
technical screening criteria. The envi-
ronmental objectives are: 1) climate
change mitigation, 2) climate change
adaptation, 3) the sustainable use
and protection of water and marine
resources, 4) the transition to a circu-
lar economy, 5) pollution prevention
and control and 6) the protection
and restoration of biodiversity and
ecosystems. The taxonomy currently
covers measures related to climate
change mitigation and climate
change adaptation.
In 2022, companies covered by the
Non-Financial Reporting Directive
reported their share of taxonomy-eli-
gible activities. In 2023, alignment with
the EU Taxonomy is reported. For an
eligible activity to be aligned with the
EU Taxonomy it further has to comply
with the Technical Screening Crite-
ria (TSC) and the Do No Significant
Harm (DNSH) Criteria. In addition, the
company has to fulfill Minimum Social
Safeguards.
Technical Screening Criteria
The technical screening criteria form
the basis for taxonomy reporting and
are criteria for determining the condi-
tions under which an economic activ-
ity qualifies as contributing substan-
tially to the environmental objectives
and for determining whether that
economic activity causes no signifi-
cant harm to any of the other environ-
mental objectives. For the first two
Glaston Annual Review 2022 80
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
objectives (climate change mitigation
and climate change adaptation), the
criteria were published in spring 2021.
Glaston has conducted an analysis
of its operations and concluded that
the Insulating Glass technologies and
related services, as well as all equip-
ment and services to solar energy
technology providers, are enabling
activities that substantially contrib-
ute to climate change mitigation.
Glaston’s Insulating Glass technol-
ogies, machines, manufacturing
lines, upgrade options and services
that enable manufacturing of insu-
lating glass unit systems are taxon-
omy-eligible activities, conforming
with the definition and fulfilling the
internationally standardized require-
ments and essential characteristics
of insulating glass units. Further,
hand-operated or power-driven
lifting, handling, loading or unloading
machinery, edge working machines
and equipment are considered not to
be taxonomy-eligible activities when
not installed as a part of an existing or
new insulating glass manufacturing
lines.
The EU Taxonomy has set clear
requirements for windows and doors
for substantial contribution to climate
change mitigation in the Annex to the
Commission Delegated Regulation
*)
.
The manufacture of energy-effi-
ciency equipment for buildings, in
accordance with Section 3.5 of the
Annex, identifies the manufacturing
of high-performance windows and
their key components as an economic
activity that significantly contributes to
climate change mitigation. Insulated
Glass Units (IGU’s) represent between
70 to 80% of the surface area of a win-
dow and are key components affect-
ing their energy efficiency, which has
been demonstrated in studies of CO
2
savings
**)
. Insulating glass manufac-
turing technologies for windows are
essential for achieving the set thresh-
old in the regulation.
The economic activities of manu-
facturing energy-efficient windows
and doors are covered in Section 3.5
by NACE codes C16.23 and C25.12,
in accordance with the statistical
classification of economic activities
established by Regulation (EC) No
1893/2006. Glaston’s insulating glass
technologies and related services are
enabling activities in accordance with
Article 10 of Regulation (EU) 2020/852.
Similarly, Glaston’s technologies
for processing glass for photovol-
taic modules and related services is
regarded as an enabling activity as it
is a key component for manufacturing
renewable energy technologies, and
is covered in Section 3.1 by NACE code
C28.99.
Further, Glaston has made an
investment in a solar power plant at
its production unit in Switzerland. The
solar panels have been producing
energy for the factory's own use since
November 2022. The investment is
covered in Annex 1 of the Delegated
Regulation
*)
, Section 7.6. Installation,
maintenance and repair of renewable
energy technologies by NACE code
43.21.
Based on this 43% of the Group’s
turnover is taxonomy eligible. In total,
Glaston has identified 28% of the total
investments to be taxonomy eligible
as well as 28% of operating expendi-
ture in 2022.

Glaston has carried out an assess-
ment to ensure that the do no sig-
nificant harm criteria are met for the
environmental objectives 2-6 listed
above in accordance with the appli-
cable technical screening criteria
for Climate Change Mitigation. The
assessment is based on scientific arti-
cles, industry association publications
and established international product
standards. Glaston’s eligible activities
comply with all DNSH criteria as set
out in the regulation.
The DNSH criteria for disclosed
activities for glass processing tech-
nologies for photovoltaic modules (3.1.
manufacture of renewable technol-
ogies) and for insulating glass tech-
nologies (3.5 manufacture of energy
efficiency equipment for buildings)
are the same.
*
)
COMMISSION DELEGATED REGULATION (EU)
…/... supplementing Regulation (EU) 2020/852
of the European Parliament and of the Council
by establishing the technical screening criteria
for determining the conditions under which
an economic activity qualifies as contributing
substantially to climate change mitigation or
climate change adaptation and for determin-
ing whether that economic activity causes no
significant harm to any of the other environ-
mental objectives. C/2021/2800 final
**
)
Potential impact of high-performance
glazing on energy and CO
2
saving in Europe,
TNO, 2019.
Glaston Annual Review 2022 81
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
The DNSH requirement under
objective 4) transition to a circular
economy, mandates an economic
activity to assess and where feasible,
adopt techniques that support:
A. reuse and use of secondary raw
materials and reused components
in products manufactured;
B. design for high durability,
recyclability, easy disassembly
and adaptability of products
manufactured;
C. waste management that prioritizes
recycling over disposal in the
manufacturing process;
D. information on and traceability of
substances of concern throughout
the life cycle of the manufactured
products.
Glass is a fully recyclable and reus-
able material and does not contain
substances of concern. Recycled
glass is a valuable resource for the
glass industry to replace virgin raw
materials and input as a raw material to
reduce energy consumption and CO
2
emissions. Further, material off-cuts
generated in flat glass processing can
be subject to direct recycling in glass
manufacturing furnaces due to its high
purity. In addition, flat glass products
manufactured accordingly to relevant
product standards ensure reasonable
working life and durability. Also, insu-
lated glass units can be dismantled,
collected and recycled. Insulating glass
units can be assigned with information
on traceability and substances of con-
cern when applicable.
Minimum Safeguards (MS)
The EU Taxonomy Regulation contains
a requirement for minimum social
safeguards. Compliance with the
Minimum Safeguards is determined
by assessing performance criteria
against four core topics: 1) Human
rights, including workers’ rights, 2)
Bribery/corruption, 3) Taxation and 4)
Fair competition.
In October 2022, the EU Platform
on Sustainable Finance published
recommended indicators for assess-
ing the non-fulfillment of minimum
safeguards, which are inadequate or
non-existent corporate due diligence
processes on human rights, final lia-
bility in respect of breaches of human
rights topics, the lack of collaboration
with a National Contact Point (NCP),
an assessment of non-compliance
with OECD guidelines or non-re-
sponse to allegations by the Business
and Human Rights Resource Centre.
Compliance with Minimum Social
Safeguards has been assessed at
company level. None of the indicators
recommended for the assessment
have been discovered in the compa-
ny’s operations. Based on this assess-
ment, Glaston meets the criteria for
alignment with Minimum Safeguards.
Human Rights
Since 2008, Glaston’s daily opera-
tions have complied with the com-
pany’s Code of Conduct. Approved
by the company’s Board of Direc-
tors, the Code of Conduct includes,
among other things, a commitment
to respect human rights. Glaston
respects human rights and basic labor
rights according to the United Nations
Universal Declaration of Human Rights,
and the company is committed to
implementing the United Nations
Guiding Principles on Business and
Human Rights, the United Nations
Global Compact, OECD’s Guidelines
for Multinational Enterprise and the
International Labour Organization’s
Declaration of Fundamental Principles
and Rights at Work.
In the future, Glaston will assess its
human rights impact (human rights
due diligence) in order to identify any
human rights impacts related to our
business and to prevent or mitigate
any related risks. If any impacts are
identified, we will attempt to eliminate,
prevent or mitigate them. We pro-
vide people who are affected by the
impacts with access to legal reme-
dies or possible compensations if it
is discovered that we have caused or
contributed to the impacts.
In 2022, Glaston’s operations began
to pay more attention to the pro-
cesses of assessing and identifying
human rights impacts, and the com-
pany carried out a non-formal human
rights risk assessment taking into
account the nature of the company’s
business and areas of operation
*)
. The
company is primarily active in Europe
and the United States. Glaston’s Code
of Conduct and the Supplier Code of
Conduct play an important role in the
management of human rights risks.
Personnel are expected to participate
regularly in Code of Conduct training,
and the commitment rate to the Sup-
plier Code of Conduct was increased
significantly in 2022. In addition,
Glaston’s supplier audit model was
developed to include the supplier’s
corporate responsibility and human
rights due diligence. The new model
will be introduced in 2023. The model’s
effectiveness will be monitored and it
will be developed further, if necessary.
Glaston has established a process
to ensure that any violations of the
Code of Conduct and other guide-
*
)
Information on Glaston’s human rights approach can be found on the company’s website.
Glaston Annual Review 2022 82
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
lines can be reported. Any violations
of the Code of Conduct may be
reported to Glaston’s General Counsel
at the designated e-mail address or
anonymously via Glaston’s whistle-
blowing channel. Glaston investigates
all reported incidents promptly and
confidentially and takes appropriate
action based on the findings of the
investigation.
Corruption
At Glaston, combating corruption and
bribery is included in the company’s
Code of Conduct, and the topics are
covered extensively in the mandatory
Code of Conduct training.
In 2020, in order to focus particular
attention on risks related to bribery and
corruption, Glaston’s Board of Directors
approved the Group’s anti-bribery and
anti-corruption policy. The purpose
of this policy is to increase Glaston
employees’ awareness of the risk of
corrupt payments, to unequivocally
prohibit the payment and receipt of
bribes, and to ensure that the com-
pany conducts business honestly, in
accordance with ethical standards and
in compliance with anti-corruption
laws, rules and regulations.
A separate anti-bribery and
anti-corruption training program was
developed at the end of 2022, and
it will be launched in early 2023. Any
violations or suspicions of improper
activity or payments can be reported
via the company’s whistleblowing
channel. Glaston or its senior man-
agement, including the senior man-
agement of its subsidiaries, has never
been charged with or convicted in a
court of corruption.
Taxation
Glaston is committed to complying
with local tax laws and regulations
as well as the OECD Transfer Pric-
ing Guidelines. Glaston is commit-
ted to pay taxes and other tax-like
charges based on current laws and
to report and disclose its tax informa-
tion in accordance with applicable
legislation.
Glaston's Tax Policy defines Glas-
ton Group’s tax strategy as well as
constitutes a general framework and
guidelines for tax governance within
the Group. The Tax Policy also pro-
vides a framework for tax risk man-
agement and determines key meas-
ures and controls to manage taxes.
The Tax Policy is approved by Glas-
ton’s Board of Directors. Glaston or its
subsidiaries have never been found
to have violated tax laws.
Fair competition
Glaston complies internationally with
EU competition legislation, while also
taking into account all stricter local
rules. Glaston regularly arranges train-
ing for its personnel on fair business
and competition issues. In addition,
policy briefings are regularly held, for
example in connection with trade
fairs, for personnel working at the
customer interface. Fair competition
training material is always available on
the company’s intranet. In the com-
pany’s communication channels, per-
sonnel are regularly informed about
the principles of fair competition and
related training material.
Any violations or suspicions of
improper activity can be reported
via the whistleblowing channel. The
company or its senior management,
including the senior management of
its subsidiaries, has never been con-
victed of violating competition laws.
Conclusion
Glaston has reviewed the Techni-
cal Screening Criteria for each of its
eligible activities and all the eligible
activities also meet the Technical
Screening Criteria for substantial con-
tribution to climate change mitigation.
Further, based on the analysis made
by the company, the identified activi-
ties do no significant harm (DNSH) to
any of the other five environmental
objectives. Compliance with Minimum
Social Safeguards has been assessed
at the level of the whole company and
the company fulfills the criteria for
Minimum Social Safeguards.
Based on the assessment made by
Glaston, 43% of the Group’s turnover is
taxonomy aligned. In total, Glaston has
identified 28% of the total investments
to be taxonomy aligned as well as 28%
of operating expenditure in 2022.
Glaston Annual Review 2022 83
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Substantial contribution criteria DNSH criteria
Economic activities
Code(s)
Absolute turnover EUR
Proportion of turnover %
Climate change mitigation %
Climate change adaptation %
Water and marine resources %
Circular economy %
Pollution %
Biodiversity and ecosystems %
Climate change mitigation (Y/N)
Climate change adaptation (Y/N)
Water and marine resources (Y/N)
Circular economy (Y/N)
Pollution (Y/N)
Biodiversity and ecosystems (Y/N)
Minimum safeguards (Y/N)
Taxonomy-aligned proportion of
turnover 2022%
Category (enabling activity E)
Category (transitional activity T)
A. TAXONOMY-ELIGIBLE ACTIVITIES %
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Activity 1: Insulating glass technologies C16.23; C25.12 89,149 42% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 42% E
Activity 2: Glass processing technologies for photovoltaic
modules C28.99 1,452 1% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 1% E
Turnover of environmentally sustainable activities
taxonomy-aligned activities (A.1) 90,600 43% 43%
A.2. Taxonomy eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
Activity 1: None - 0%
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2) - 0% 0%
TOTAL (A.1 + A.2) 90,600 43% 43% 100% 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) 122,920 57%
TOTAL (A+B) 213,520 100%
Turnover
Glaston Annual Review 2022 84
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Substantial contribution criteria DNSH criteria
Economic activities
Code(s)
Absolute CapEx EUR
Proportion of CapEx %
Climate change mitigation %
Climate change adaptation %
Water and marine resources %
Circular economy %
Pollution %
Biodiversity and ecosystems %
Climate change mitigation (Y/N)
Climate change adaptation (Y/N)
Water and marine resources (Y/N)
Circular economy (Y/N)
Pollution (Y/N)
Biodiversity and ecosystems (Y/N)
Minimum safeguards (Y/N)
Taxonomy -aligned proportion of
CapEx 2022 %
Category (enabling activity) E
Category (transitional activity)
A. TAXONOMY-ELIGIBLE ACTIVITIES %
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Activity 1: Insulating glass technologies C16.23 C25.12 1,715 24% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 24% E
Activity 2: Glass processing technologies for photovoltaic
modules C28.99 82 1% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 1% E
Activity 3: Installation, maintenance and repair of
solar photovoltaic systems and the ancillary technical
equipment (Switzerland factory) F42.21 208 3% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 3%
CapEx of environmentally sustainable activities
taxonomy-aligned activities (A.1) 2,004 28% 28%
A.2. Taxonomy eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
Activity 1: None - 0%
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2) - 0% 0%
TOTAL (A.1 + A.2) 2,004 28% 28% 100% 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B) 5,165 72%
TOTAL (A+B) 7,170 100%
Capital Expenditure (CapEx)
Glaston Annual Review 2022 85
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Substantial contribution criteria DNSH criteria
Economic activities
Code(s)
Absolute OpEx EUR
Proportion of OpEx %
Climate change mitigation %
Climate change adaptation %
Water and marine resources %
Circular economy %
Pollution %
Biodiversity and ecosystems %
Climate change mitigation (Y/N)
Climate change adaptation (Y/N)
Water and marine resources (Y/N)
Circular economy (Y/N)
Pollution (Y/N)
Biodiversity and ecosystems (Y/N)
Minimum safeguards (Y/N)
Taxonomy -aligned proportion of OpEx
2022 %
Category (enabling activity) E
Category (transitional activity)
A. TAXONOMY-ELIGIBLE ACTIVITIES %
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Activity 1: Insulating glass technologies C16.23, C25.12 2,789 28% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 28% E
OpEx of environmentally sustainable activities
taxonomy-aligned activities (A.1) 2,789 28%
A.2. Taxonomy eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
Activity 1: None - 0%
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2) - 0% 0%
TOTAL (A.1 + A.2) 2,789 28% 28% 100% 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B) 7,002 72%
TOTAL (A+B) 9,792 100%
Operating Expenditure (OpEx)
Going forward, Glaston’s conclusions on the taxonomy may change as the assessment
criteria become more precise and further guidance is available.
Glaston Annual Review 2022 86
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Accounting policy
The consolidated financial state-
ments 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). The Taxonomy key
performance indicators (KPIs) have
been calculated by using the financial
information presented in Glaston’s
financial statements for the fiscal
year 2022.
Turnover
Glaston has calculated KPI for turno-
ver based on its interpretation of defi-
nitions presented in the Disclosures
Delegated Act***).
The numerator of turnover KPI, as
defined in the Disclosures Delegated
Act, includes the portion of net turno-
ver derived from products or services,
including intangibles, associated with
Taxonomy-aligned economic activi-
ties. The denominator equals Group
total net sales that are reported in
the Annual Report (see page 94) in
accordance with IFRS for the period
January 1 to December 31, 2022.
Glaston’s taxonomy-aligned turn-
over includes sales of insulating glass
machines and services as well as sales
of tempering lines which are specified
for manufacturing glass components
for solar panel production. For Insu-
lating Glass technologies, machines,
manufacturing lines, upgrade options
and services that enable manufac-
turing of insulating glass unit systems
are included whereas loading or
unloading machinery, edge working
machines and equipment when not
installed as a part of an existing or new
insulating glass manufacturing lines,
are excluded.
Turnover KPI is calculated based
on net sales per project and therefore
double counting is avoided.
Capital expenditure
Glaston has calculated the KPI for
taxonomy-aligned CapEx based on its
interpretation of definitions presented
in the Disclosures Delegated Act.
The denominator of CapEx KPI, as
defined in the Disclosures Delegated
Act, includes additions to tangible and
intangible assets during the financial
year considered before deprecia-
tion, amortization and any re-meas-
urements. Total capital expenditure
covers costs that are accounted in
accordance with IAS 16 Property,
Plant and Equipment, IAS 38 Intangi-
ble Assets as well as IFRS 16 Leases.
Glaston capitalizes development
costs of new products. Additionally,
CapEx includes other tangible and
intangible assets, such as property, IT
equipments and software, machinery
and other equipments. Total CapEx
inclusions are further described in
Notes 3.1. Intangible Assets, 3.2. Tangi-
ble Assets and 3.3. Leases.
The numerator of CapEx KPI
includes the part of capital expend-
iture, as defined in the Disclosures
Delegated Act, that relates to assets
or processes that are associated with
taxonomy-aligned economic activ-
ities. Should the capital expenditure
relate only partly to taxonomy-aligned
economic activity, the expenditure
has been attributed through an alloca-
tion key based on net sales.
Operating expenditure
Glaston has calculated KPI for taxono-
my-aligned OpEx based on its inter-
pretation on definitions presented in
the Disclosures Delegated Act.
The denominator of OpEx KPI, as
defined in the Disclosures Delegated
Act, includes direct non-capitalized
costs that relate to research and
development, building renovation
measures, short-term lease, day-to-
day servicing (i.e. maintenance and
repair) of property, plant and equip-
ment. Research and development
costs include personnel expenses and
other fixed costs.
The numerator of OpEx KPI
includes the part of operating
expenditure, as defined in the Disclo-
sures Delegated Act, that relates to
assets or processes that are asso-
ciated with taxonomy-aligned eco-
nomic activities.
Should the operating expendi-
ture relate only partly to a taxono-
my-aligned economic activity, the
expenditure has been attributed
through an allocation key based on
net sales. Depreciation is excluded
from this KPI.
***
)
COMMISSION DELEGATED REGULATION
(EU 2021/2178 of 6 July 2021 supplementing
Regulation (EU) 2020/852 of the European
Parliament and of the Council by specifying
the content and presentation of information to
be disclosed by undertakings subject to Arti-
cles 19a or 29a of Directive 2013/34/EU con-
cerning environmentally sustainable economic
activities, and specifying the methodology to
comply with that disclosure obligation
Glaston Annual Review 2022 87
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Business risks
Glaston is exposed to risks that may
result from changes in the busi-
ness environment or the company’s
operational activities. The risk factors
described below may potentially have
a negative impact on the company’s
business or financial status and there-
fore on the company’s value.
Strategic risks
A review of strategic risks is part of the
Group’s strategic planning process.
A risk is defined as strategic where, if
realized, it may have long-term effects
on business.
Business environment risks
The company operates worldwide
and changes in the global economy
and business cycles directly impact
the company’s operating conditions.
The company’s business is largely
linked to trends in global investment
demand. Demand for the compa-
ny's products is influenced by global,
regional and national macroeconomic
conditions, which affect the end users
of its products. As a result, Glaston
is exposed to business cycles in its
customers’ industries, such as the
construction, automotive, display and
solar panel industries.
In recent years, general economic
and financial market conditions in
Europe and elsewhere in the world
have fluctuated significantly. High
inflation, the price and availability of
energy, rising interest rates and supply
chain disruptions have weakened the
global economic outlook, and these
pose a risk to the company's opera-
tions and profitability. In addition, Rus-
sia’s invasion of Ukraine has increased
geopolitical risks and inflation pres-
sures, and has, in turn, intensified
disruptions in global supply chains.
The general increase in uncertainty
may reduce customers’ willingness to
invest and thereby negatively impact
Glaston’s order intake, net sales and
earnings. Given the strategic impor-
tance of the Chinese market, the
impact of any of the aforementioned
in China could have adverse effects
on the implementation of the compa-
ny’s strategy.
In Europe, the energy crisis is
strongly impacting the energy-inten-
sive glass industry, which has been
largely dependent on gas imported
from Russia. Soaring energy prices
and availability concerns in Europe,
in particular, may impact the willing-
ness of Glaston’s customers to invest
in new machines. Furthermore, the
significant price increase of float glass
has impacted customers’ short-
term profitability. On the other hand,
in the longer term, energy-related
risks could lead to general energy
consumption awareness and drive
demand for investments in ener-
gy-saving technologies and renewa-
ble energy solutions.
The COVID-pandemic has affected
commercial building industry devel-
opment and, as a result of the pan-
demic, the future role of office build-
ings might change as remote work
becomes more commonplace. In
the mid-to-long term, this could have
an impact on commercial building
development, which is an important
driver, particularly for flat tempering
and flat laminating products in the
heat treatment business. Demand for
insulating glass machines is currently
driven by the widespread global need
to improve the energy performance
of buildings and is, therefore, less
dependent on the global economic
cycle. This brings stability to the
company alongside the more cyclical
heat treatment and automotive glass
businesses.
Due to rising costs caused by
increasing global environmental
requirements and environmental
pollution, vehicle manufacturers need
to invest in more low-emission and
energy-efficient technologies and
products. Changing consumer behav-
ior, stricter requirements and tighter
regulation have led to a shift in the
investments of automotive industry
customers. Long-term disruption
and structural changes in the market
could impact demand for the Group’s
automotive glass machines. Increas-
ing automotive glass requirements
present new challenges for glass pro-
cessing, bringing new players to the
market and creating new opportuni-
ties for glass processing technology
suppliers. From a technical perspec-
tive, environmental requirements will
be met through, among other things,
the use of lighter vehicle structures,
on which thin glass, in particular, will
have a positive impact.
Heat treatment and automotive
glass machines accounted for 36% of
the company’s net sales in 2022.
In addition to sales of new machines,
the company is focusing on increas-
ing its services business, with the
aim of partially balancing its cyclically
sensitive business and improving its
profitability.
Competitive situation and price risks
Competition in the glass process-
ing machines and services market is
intense, and Glaston is in competition
with several multinational compa-
Glaston Annual Review 2022 88
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
nies and regional manufacturers and
service providers, as well as indirectly
also with its customers’ operations.
The intensification of competition may
lead to a deterioration of order intake,
project margins or terms of payment,
thereby adversely impacting Glaston’s
business. Existing or new competitors
may expand into one or more of the
company’s key markets, or may seek
to increase their market share through
aggressive pricing strategies or other
means. For example, in China, which
is the largest market for the glass pro-
cessing industry, purchasing behavior
is more cost-conscious than in other
market areas. Consequently, price
competition is intense and local play-
ers have a certain competitive advan-
tage in the market. This market also
plays an important role in Glaston’s
renewed strategy. The company’s
position in the Chinese market and its
success in launching and increasing
the sales of new products developed
for the market are important factors in
the company’s long-term growth.
Glaston’s renewed strategy iden-
tifies opportunities for the company
to strengthen its market position and
cost competitiveness as well as seek
growth by developing its product
range to better meet the needs of
mid-range segment customers in the
glass processing market, particularly
in Asia and even more specifically in
China architectural market. In 2022,
the company announced its plan to
establish the production of automo-
tive glass pre-processing equipment
for standard products at Glaston's
factory in China.
Technology and IPR risks
One of Glaston’s most significant stra-
tegic risks is technology risk, i.e. the
entry into the market by a competing
machine or glass processing technol-
ogy, which would result in a reduction
of Glaston’s currently high market
shares and require the company to
make considerable investments in
product development. This risk could
also be realized if Glaston’s technol-
ogy would infringe third-party rights.
Responsibility and climate change risks
Glaston has assessed its responsibility
risks, including risks related to climate
change, in both its strategic and oper-
ational risk assessments. The risks
were not found to be significant, how-
ever. The potential risks associated
with responsibility, climate change
and Glaston’s products include regu-
latory changes, environmental protec-
tion and climate-related disruptions in
the supply chain.
Glaston’s position as a frontrunner
in technology development reduces
the company’s responsibility risks
and supports the exploitation of the
opportunities provided by more strin-
gent environmental requirements, for
example through the insulating glass
and solar panel technologies offered
by the company. In addition, a key
focus of Glaston’s product develop-
ment work is the energy-efficiency of
products, and consequently custom-
ers can process their glass with lower
electricity consumption than before.
Glaston has assessed its cli-
mate-related risks and biodiversity by
utilizing the Task Force on Climate-re-
lated Financial Disclosures (TCFD)
framework.
Changes in the climate
As a result of climate change, changes
in annual rainfall and extreme weather
conditions are becoming more com-
mon. Glaston’s production facilities
are located in such a way that there is
a low risk that flooding would jeopard-
ize their activities. On the other hand,
the increased severity of extreme
weather events might lead to addi-
tional disruptions in the supply chain,
thereby adversely affecting Glaston’s
operations. Glaston manages these
risks at the Group level and takes the
necessary preventive measures for its
production facilities and their machin-
ery and equipment.
Compliance and corruption risk
Glaston recognizes the risk of becom-
ing the target of third-party fraud as
well as the possibility of corruption
and fraud in the company’s operating
areas. Glaston’s operations are guided
by its Code of Conduct approved by
the company’s Board of Directors.
The company always adheres to
high ethical operating principles and
requires strict compliance with its
anti-corruption procedures. The Code
of Conduct describes the compa-
ny’s requirements and expectations
regarding responsible and ethical
conduct. In addition, the Code of
Conduct guides Glaston’s employees
in their daily work with colleagues,
customers, suppliers and other stake-
holders. The topics covered include
workplace conduct and responsible
business practices as well as the
environment and sustainable develop-
ment. All personnel are trained in the
Code of Conduct.
In order to focus particular atten-
tion on risks related to bribery and
corruption, the Code of Conduct is
complemented by the Anti-bribery
and anti-corruption policy approved
Glaston Annual Review 2022 89
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
by the Board of Directors. The purpose
of this policy is to increase Glaston
employees’ awareness of the risk of
corrupt payments, to unequivocally
prohibit the payment and receipt of
bribes, and to ensure that the com-
pany conducts business honestly, in
accordance with ethical standards
and in compliance with anti-corrup-
tion laws, rules and regulations. Local
guidelines supplement the Group-
level guidelines.
Glaston has a whistleblowing sys-
tem, which allows personnel to report
any violations of the Code of Con-
duct and other guidelines. Group-
level guidelines are available on the
company’s intranet. Local guidelines
are available on either the intranet
sites or shared networks of operating
locations.
Operational risks
Operational risk management forms
part of the daily work of business
areas. Opportunities and risks are
identified, assessed and managed on
a daily basis.
Glaston’s most significant opera-
tional risks include management and
possible quality problems related to
demanding customer projects, avail-
ability of components, management
of the contractual partner and sub-
contractor network, product devel-
opment, succeeding in the protection
and efficient production of intellectual
property rights as well as the availabil-
ity and permanence of expert per-
sonnel. In some cases, the possible
failure of even a single project may
have significant financial implications
if its size or contractual terms and
conditions are exceptional.
Disruptions in supply chains
Of the above mentioned, the supply
chain disruptions currently constitute
the main risk for Glaston’s business
operations. These disruptions inten-
sified in 2022 and are expected to
continue in 2023. Glaston is actively
mitigating the higher than customary
risks related to raw material and com-
ponent prices and availability. Major
supply chain disruptions may impact
the company’s performance.
Data and cyber security risks
Glaston continually develops its infor-
mation systems and, despite care-
ful planning, temporary disruptions
to operations might be associated
with the introduction stages of new
systems. Because of the industrial
internet and general development in
the field of information systems, the
significance of cyber security risks
has increased, and the management
of such risks is subject to particu-
lar attention. Severe cyber security
attacks may impact the company’s
ability to conduct its business oper-
ations without interruptions. The IT
Security Policy of the company lists
the targets and principles and defines
the responsibilities with respect to
IT security. The IT Security Policy is
reviewed and audited regularly.
Other operational risks
The successful growth of the Group’s
operations requires successful man-
agement and the controlled growth
of resources. In addition, digitaliza-
tion is bringing new requirements for
technological and business manage-
ment expertise. The Group’s ability to
attract talent and maintain a high level
of job satisfaction among its employ-
ees is further emphasized.
Glaston’s balance sheet contains
a substantial amount of goodwill. A
prolonged period of low demand may
lead to a situation in which Glaston’s
recoverable amounts are insufficient
to cover the carrying amounts of
asset items, particularly goodwill. If
this happens, it will be necessary to
recognize an impairment loss, which,
when implemented, will weaken the
result and equity.
Pandemic risk
In 2022, the impact of the COVID-19
pandemic further decreased, and
coronavirus-related restrictions were
removed during the year. In China,
restrictions were not removed until
the end of 2022, and the restrictions
that were in effect for almost the
entire year therefore affected the
company’s operations and result.
After the removal of strict restrictions,
the virus has spread strongly through
the Chinese population. The pan-
demic situation and related restric-
tions may change suddenly. New
lockdown measures could also impact
the company’s development in China
in 2023.
The risk of the spread of new virus
variants still exists, which could cause
serious business challenges similar to
those experienced in previous years.
Financial risks
The Group’s most significant financial
risks are foreign exchange, credit,
interest rate and refinancing risks.
Financial risks and their management
are described in the section Manage-
ment of Financial Risks of the Annual
Review.
The Group’s risk management pro-
cesses are described in the Corpora-
tion Governance Statement.
Glaston Annual Review 2022 90
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Corporate Governance
Statement
Glaston has published a separate
Corporate governance statement for
2022 that complies with the recom-
mendations of the Finnish Corporate
Governance Code for listed compa-
nies. The statement is available on the
company’s website.
Short-term risks and business
uncertainties
For Glaston’s business operations,
supply chain disruptions are the
main short-term risk, and these are
expected to continue well into 2023.
Glaston continues to actively mitigate
the higher-than-normal risks related
to raw materials and component
prices and availability. Major supply
chain disruptions may impact the
company’s performance as com-
ponent scarcity may cause revenue
recognition delays, whereas heavily
increasing prices of raw materials may
add to short-term profitability pres-
sure. Additionally, inflationary pres-
sures combined with tighter monetary
control could have a negative impact
on customers’ investment decisions.
Amid increasing market uncertainty,
customers may also want to postpone
or cancel their orders.
Increasing uncertainty in the global
markets has impacted on economic
growth and could lead to a recession.
This would affect Glaston’s business
environment, with short-term risks
mainly linked to the development of
global investment demand. Glaston
continuously monitors the develop-
ment outlook of the global economy
and its impact on the progress of its
markets. If the demand environment
deteriorates substantially, this will
mainly affect Glaston’s net sales and
earnings with a delay of six to nine
months.
In Europe, the glass industry, as an
energy-intensive industry, is severely
impacted by the ongoing energy
crisis. In previous months, the sector
has already seen glass manufacturers
closing down or reducing their produc-
tion in Europe. Soaring energy prices
and availability concerns in Europe
in particular may impact the willing-
ness of Glaston’s customers to invest
in new machinery. Furthermore, the
significant price increase of float glass
has impacted customers’ short-term
profitability. For the energy-intensive
float glass industry, an uninterrupted
supply of energy is crucial. The indus-
try is dependent on fossil fuels, mainly
gas, which in Europe partly came from
Russia. Significant rationing of natural
gas could lead to serious or even per-
manent damage to float glass pro-
ducing equipment. In the longer term,
the energy-related risks could lead to
general energy consumption aware-
ness and drive demand for invest-
ments in energy-saving technologies
and renewable energy solutions.
Even though the impact of the
COVID-19 pandemic has further
decreased, there is still a risk of
new virus variants spreading, caus-
ing severe business challenges like
those experienced in previous years.
In the event of new lockdowns and
travel restrictions, service work and
the spare parts business as well
as machine installations would be
affected. Due to the above mentioned
circumstances, there is higher than
normal uncertainty related to custom-
ers’ investment behavior in regions
potentially affected by the pandemic.
Labor shortages and rising
employee turnover are growing con-
cerns in the market. Glaston’s ability
to maintain a high level of job satis-
faction among its employees and also
to attract new employees is further
emphasized.
Glaston’s outlook for 2023
In 2023, Glaston expects the overall
market activity to remain at a good
level despite some regional differ-
ences. Although the megatrends
support the use of energy-efficient
windows, demand in Europe could
be affected by the slowdown in the
architectural market. In the Ameri-
cas, Glaston expects the demand to
continue strong, whereas in China, the
prospects of the architectural market
are uncertain.
In 2023, Glaston continues to focus
on the execution of its strategy, which
will incur costs and capital expenditure
ahead of the effect on revenue growth.
As supply chain disturbances and
geopolitical tensions continue, a high-
er-than-normal uncertainty is related
to the development of economic
activity and customers’ investments.
Glaston entered 2023 with an order
backlog 46% higher than in the previ-
ous year. This provides a strong start-
ing point for 2023 and supports the
company’s net sales and profitability
development. Glaston Corporation
estimates that its net sales and com-
parable EBITA will improve in 2023
from the levels reported for 2022. As
is typical, Glaston expects the first
quarter of 2023 to be the weakest of
the year, additionally impacted by low
upgrade net sales and a higher share of
new products. In 2022, Group full-year
net sales totaled EUR 213.5 million and
comparable EBITA was EUR 13.6 million.
Glaston Annual Review 2022 91
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Board of Directors’ proposal on

The distributable funds of Glaston
Corporation are EUR 61,114,846 of
which EUR 1,775,240 represents the
loss for the financial year. The com-
pany has no funds available for divi-
dend distribution.
The Board of Directors proposes
to the Annual General Meeting to be
held on 4 April 2023 that the loss for
the financial year 2022 be placed in
retained earnings and no dividend be
paid.
The Board of Directors proposes
to the Annual General Meeting that
based on the balance sheet to be
adopted for financial period 2022,
a return of capital of a total of EUR
3,371,596 be distributed., i.e. EUR 0.04
per share.
The return of capital will be paid
from the reserve for invested unre-
stricted equity to shareholders who are
registered in the company’s register
of shareholders, maintained by Euro-
clear Finland Ltd, on the record date
for payment, 6 April 2023. The Board of
Directors proposes to the Annual Gen-
eral Meeting that the return of capital
be paid on 20 April 2023.
The number of shares entitled to
a return of capital on the date of the
proposal on the distribution of profits
is 84,289,911, corresponding to a total
return of capital of EUR 3,371,596.
EUR 57,743,250 will be left in distrib-
utable funds.
No substantial changes in the com-
pany’s financial position have taken
place after the end of the financial
year. In the view of the Board of Direc-
tors, the proposed distribution of prof-
its does not jeopardize the company’s
solvency.
Helsinki, 8 February 2023
Glaston Corporation
Board of Directors
Glaston Annual Review 2022 92
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Per Share Data
2022 2021 2020
Earnings per share, EUR 0.037 0.013 -0.065
Comparable earnings per share 0.074 0.051 -0.003
Return of capital per share, EUR
(1
0.04 0.03 0.02
Return of capital ratio, %
(1
109.1% 227.6% -
Return of capital yield
(1
4.4% 2.6% 2.2%
Return of capital , EUR million
(1
3.4 2.5 1.7
Adjusted equity attributable to owners of
the parent per share, EUR 0.81 0.81 0.82
Price per earnings per share (P/E) ratio 24.6 86.5 -13.7
Price per equity attributable to owners of
the parent per share 1.11 1.41 1.09
Number of shares at the end of the year 84,289,911 84,289,911 84,289,911
Number of shares, average 84,289,911 84,289,911 84,289,911
2022 2021 2020
Share price and turnover
Share proce, year high, EUR 1.19 1.40 1.27
Share price, year low, EUR 0.71 0.72 0.58
Share price, volume-weighted year
average, EUR 0.95 0.98 0.78
Share price, end of year, EUR 0.90 1.14 0.89
Number of shares traded (1.000) 8,153 20,577 24,638
% of average number of registered
shares 9.7% 24.4% 29.2%
Market capitalization of registered shares,
end of year, treasury shares excluded, EUR
million 76.0 96.1 75.0
(1
Board of Directors' proposal to 2023 Annual General Meeting
Glaston Annual Review 2022 93
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Financial Ratios
EUR thousand 2022 2021 2020

Net sales 213,520 182,662 170,067
Operating result 7,640 5,105 -541
% of net sales 3.6% 2.8% -0.3%
Comparable operating result (EBIT) 9,917 6,569 3,225
% of net sales 4.6% 3.6% 1.9%
Comparable EBITA 13,624 11,098 7,742
% of net sales 6.4% 6.1% 4.6%
Financial income and expenses (net) -2,899 -3,945 -2,761
% of net sales -1.4% -2.2% -1.6%
Result before income taxes and non-
controlling interests 4,740 1,160 -3,302
% of net sales 2.2% 0.6% -1.9%
Income taxes -1,649 -49 -2,161
Net profit / loss attributable to owners of
the parent 3,091 1,111 -5,463
% of net sales 1.4% 0.6% -3.2%
Return on capital employed (ROCE), % 6.9% 2.8% -0.4%
Comprable return on capital employed
(Comparable ROCE), % 10.5% 6.1% 4.7%
Return on equity, % 4.5% 1.6% -7.7%
Research and development expenses 7,662 6,450 5,823
% of net sales 3.6% 3.5% 3.4%
Gross capital expenditure 5,850 5,168 3,368
% of net sales 2.7% 2.8% 2.0%
Order book, EUR million 138.3 94.8 63.9
EUR thousand 2022 2021 2020

Property, plant and equipment and
intangible assets 46,337 47,392 48,605
Goodwill 58,662 58,605 58,327
Non-current assets total 107,751 111,581 113,494
Equity attributable to owners of the parent 68,437 68,030 68,881
Liabilities 126,455 129,253 138,399
Total assets 194,892 197,283 207,281
Capital employed 103,974 113,152 125,764
Net interest-bearing debt 13,312 18,269 33,623
Equity ratio, % 44.0% 42.3% 41.2%
Gearing, % 51.9% 66.3% 82.6%
Net gearing, % 19.5% 26.9% 48.8%
Personnel
Personnel, average 775 731 74 4
Personnel, at the end of the period 783 750 723
Glaston Annual Review 2022 94
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
EUR thousand 2022 2021 2020
Comparable operating result (EBIT) and EBITA
Operating result 7,640 5,105 -541
Items affecting comparability 2,278 1,464 3,766
Comparable EBIT 9,917 6,569 3,225
Operating result 7,640 5,105 -541
Amortization and purchase price allocation 3,707 4,530 4,517
EBITA 11,346 9,634 3,976
Items affecting comparability 2,278 1,464 3,766
Comparable EBITA 13,624 11,098 7,742
% of net sales 6.4% 6.1% 4.6%
EUR thousand 2022 2021 2020
Comparable ROCE% and EPS
 4,740 1,160 -3,302
Financial expenses 2,742 2,184 2,740
Purchase price allocation 1,638 2,503 2,771
Items affecting comparability 2,278 1,464 3,766
Total 11,399 7,311 5,974
Equity 68,437 68,030 68,881
Interest bearing liabilities 35,536 45,121 56,882
Avg (1.1. and end of period) 108,562 119,007 126,043
Comparable ROCE% 10.5% 6.1% 4.7%
Profit/loss for the period 3,091 1,111 -5,463
Purchase price allocation 1,639 2,503 2,771
Items affecting comparability 2,278 1,464 3,766
Tax -783 -793 -1,307
Total 6,224 4,285 -233
Number of shares , average 84,290 84,290 84,290
Comparable earnings per share 0.074 0.051 -0.003
The reconciliation of alternative performance measures
Glaston Annual Review 2022 95
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Per share data
Earnings per share (EPS)
Net result attributable to owners of the parent
Average number of shares
Dividend per share*
Dividends paid
Number of issued shares at end of the period
Dividend payout ratio*
Dividend per share x 100
Earnings per share
Dividend yield per share*
Dividend per share x 100
Share price at end of the period
Equity attributable to owners of the parent per share
Equity attributable to owners of the parent at end of the period
Number of shares at end of the period
Average trading price
Shares traded (EUR)
Shares traded (volume)
Price per earnings per share (P/E)
Share price at end of the period
Earnings per share (EPS)
Price per equity attributable to owners of the parent per share
Share price at end of the period
Equity attributable to owners of the parent per share
Share turnover
The proportion of number of shares traded during the period to
weighted average number of shares
Market capitalization
Number of shares at end of the period x share price at end of the period
Number of shares at period end
Number of issued shares - treasury shares
* Definitions are also applied with return of capital
Financial ratios
EBITDA
Profit / loss before depreciation, amortization and impairment
Operating result (EBIT)
Profit / loss after depreciation, amortization and impairment
Cash and cash equivalents
Cash + other financial assets (includes cash and cash equivalents at
amortized cost)
Definitions of Key Ratios
Glaston Annual Review 2022 96
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Net interest-bearing debt
Interest-bearing liabilities (includes interest-bearing liabilities at amortized cost) -
cash and cash equivalents
Financial expenses
Interest expenses of financial liabilities + fees of financing arrangements + foreign
currency differences of financial liabilities
Equity ratio, %
Equity (Equity attributable to owners of the parent +non-controlling interest)
x 100
Total assets - advance payments received
Gearing, %
Net interest-bearing debt x 100
Equity (Equity attributable to owners of the parent + non-controlling interest)
Net gearing, %
Net interest-bearing debt x 100
Equity (Equity attributable to owners of the parent + non-controlling interest)
Return on capital employed, % (ROCE)
Profit / loss before taxes + financial expenses x 100
Equity + interest-bearing liabilities
(average of 1 January and end of the reporting period)
Return on equity, % (ROE)
Profit / loss for the reporting period x 100
Equity (Equity attributable to owners of the parent + non-controlling interest)
(average of 1 January and end of the reporting period)
Alternative performance measures
Comparable EBIT:
Operating result after depreciation, amortization and impairment, +/- items affect-
ing comparability + large, expensed cloud-computing investments.
Comparable EBITDA:
Operating result before amortization and impairment, +/- items affecting compa-
rability + large, expensed cloud-computing investments.
Comparable EBITA:
Operating result before amortization, impairment of intangible assets and pur-
chase price allocation +/- items affecting comparability + large, expensed
cloud-computing investments.
Comparable return on capital employed, % (Comparable ROCE):
(Profit / loss before taxes + amortization of purchase price allocations +/- items
affecting comparability + financial expenses x 100) / Equity + interest-bearing liabil-
ities, average of 1 January and end of the reporting period.
Comparable earnings per share (Comparable EPS):
Net result attributable to owners of the parent +/- (items affecting comparability+
amortization of purchase price allocations) net of tax / Average number of shares.
Items affecting comparability:
Items affecting comparability are adjusted for non-business transactions or
changes in valuation items when they arise from restructuring, acquisitions and
disposals, related integration and separation costs, sale or impairment of assets.
These may include staff reductions, rationalization of the product range, restruc-
turing of the production structure, and reduction of premises. Impairment losses
on goodwill, gains or losses on disposals due to changes in the group structure,
exceptionally large gains or losses on tangible and intangible assets, exceptional
compensations for damages and legal proceedings are restated as an item
affecting comparability.
Glaston Annual Review 2022 97
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Consolidated
financial statements
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Consolidated statement of profit or loss
1 January—31 December
EUR thousand Note 2022 2021
Net sales 2.2. 213,520 182,662
Other operating income 2.3. 3,583 4,284
Changes in inventories of finished goods and
work in progress 2.4. 1,016 1,003
Own work capitalized 606 5
Materials 2.4. -97,926 -82,964
Personnel expenses 2.5. -65,357 -58,371
Other operating expenses 2.4. -40,120 -33,590
Depreciation, amortization and impairment 3.4. -7,681 -7,924
Operating result 7,640 5,105
Financial income 2.8. 124 334
Financial expenses 2.8. -3,024 -4,279
Financial items, net -2,899 -3,945
Result before income taxes 4,740 1,160
Income taxes 2.9. -1,649 -49
 3,091 1,111
Attributable to:
Owners of the parent 3,091 1,111
Non-controlling interest - -
Earnings per share, EUR, basic and diluted 2.10. 0.037 0.013
The main calculations presented by the Group must be read together with the relevant notes.
Glaston Annual Review 2022 99
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Consolidated statement of comprehensive income
1 January—31 December
EUR thousand 2022 2021
 3,091 1,111


Exchange differences on translating foreign operations 462 1,377
Cash flow hedges 726 -55
Cash flow hedges, taxes -65 -
Other comprehensive income that will not be

Fair value changes of financial assets measured at fair
value through other comprehensive income - -2,834
Actuarial gains and losses arising from defined benefit
plans -2,083 1,762
Actuarial gains and losses arising from defined benefit
plans, taxes 445 -567
Other comprehensive income for the period -515 -316
Total comprehensive income for the period 2,576 795
Attributable to:
Owners of the parent 2,576 795
Non-controlling interest - -
The main calculations presented by the Group must be read together with the relevant notes.
Glaston Annual Review 2022 100
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Consolidated statement of financial position
at 31 December
EUR thousand Note 2022 2021
Assets
Non-current assets
Goodwill 3.1., 3.4. 58,662 58,605
Other intangible assets 3.1. 17,473 17,209
Property, plant and equipment 3.2. 22,620 22,874
Right-of-use assets 3.3. 6,245 7,310
Financial assets measured at fair value
through other comprehensive income 5.5. 8 8
Loan and other non-current receivables 4.2. 605 2,933
Deferred tax assets 2.9. 2,139 2,643
Total non-current assets 107,751 111,581
Current assets
Inventories 4.1. 31,959 27,277
Trade and other receivables 4.2. 23,958 17,115
Contract assets 2.2. 9,000 14,322
Assets for current tax 2.9. - 137
Cash equivalents 5.2. 22,224 26,852
Total current assets 87,141 85,702
Total assets 194,892 197,283
at 31 December
EUR thousand Note 2022 2021
Equity and liabilities
Equity
Share capital 12,696 12,696
Other restricted equity reserves 295 286
Reserve for invested unrestricted equity 105,334 107,863
Other unrestricted equity reserves 373 -288
Retained earnings -50,260 -52,527
Total equity 68,437 68,030
Non-current liabilities
Non-current interest-bearing liabilities 5.6. 23,931 30,405
Non-current lease liabilities 5.6. 5,863 6,882
Non-current non interest bearing liabilities 4.3. - 6
Non-current provisions 4.4. 427 297
Deferred tax liabilities 2.9. 9,096 9,263
Total non-current liabilities 39,317 46,853
Current liabilities
Current interest-bearing liabilities 5.6. 4,039 6,159
Current lease liabilities 5.6. 1,703 1,675
Current provisions 4.4. 3,196 2,482
Trade and other current interest-free payables 4.3. 73,137 69,259
Contract liabilities 2.2. 3,936 2,063
Liabilities for current tax 2.9. 1,126 763
Total current liabilities 87,138 82,400
Total liabilities 126,455 129,253
Total equity and liabilities 194,892 197,283
The main calculations presented by the Group must be read together with the relevant notes.
Glaston Annual Review 2022 101
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Equity 1 January 12,696 107,863 -165 -57,394 5,030 68,030
 - - - 3,091 - 3,091
Other comprehensive income
Total exchange differences on
translating foreign operations - - - - 462 462
Actuarial gains and losses arising from
defined benefit plans - - - -2,083 - -2,083
Actuarial gains and losses arising from
defined benefit plans, taxes - - - 445 - 445
Cash flow hedges - - 726 - - 726
Cash flow hedges, taxes - - -65 - - -65
Fair value changes of financial assets
measured at fair value through other
comprehensive income - - - - - -
Other comprehensive income for the
period - - 661 -1,638 462 -515
Total comprehensive income for the
period - - 661 1,453 462 2,576
Share-based incentive plan - - - 185 - 185
Share-based incentive plan, taxes - - - -37 - -37
Return of capital - -2,529 - - - -2,529
Total transactions with the owners of
the Company - -2,529 - 148 - -2,381
Other changes - - - 212 - 212
Equity 31 December 12,696 105,334 496 -55,581 5,492 68,437
Consolidated statement of changes in equity
EUR thousand
2022 Share capital
Reserve for invested
unrestricted equity
Fair value and
other reserves Retained earnings
Cumulative
exchange difference Total equity
The main calculations presented by the Group must be read together with the relevant notes.
Glaston Annual Review 2022 102
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Equity 1 January 12,696 109,549 -165 -56,844 3,646 68,881
 - - - 1,111 - 1,111
Other comprehensive income
Total exchange differences on
translating foreign operations - - - 33 1,344 1,377
Actuarial gains and losses arising from
defined benefit plans - - - 1,762 - 1,762
Actuarial gains and losses arising from
defined benefit plans, taxes - - - -567 - -567
Cash flow hedges - - - -55 - -55
Cash flow hedges, taxes - - - - - -
Fair value changes of financial assets
measured at fair value through other
comprehensive income - - - -2,834 - -2,834
Other comprehensive income for the
period - - - -1,661 1,344 -316
Total comprehensive income for the
period - - - -549 1,344 795
Share-based incentive plan - - - - 170 170
Share-based incentive plan,taxes - - - - -34 -34
Return of capital - -1,686 - - - -1,686
Total transactions with the owners of
the Company - -1,686 - - 136 -1,550
Other changes - - - - -96 -96
Equity 31 December 12,696 107,863 -165 -57,394 5,030 68,030
Consolidated statement of changes in equity
EUR thousand
2021 Share capital
Reserve for invested
unrestricted equity
Fair value and
other reserves Retained earnings
Cumulative
exchange difference Total equity
The main calculations presented by the Group must be read together with the relevant notes.
Glaston Annual Review 2022 103
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Consolidated statement of cash flows
1 January—
31 December
EUR thousand 2022 2021

Profit for the period 3,091 1,111
Adjustments
1)
10,191 8,481
Interest received 121 214
Interest paid -445 -1,411
Other financing items -1,744 -239
Income taxes paid -707 -1,026

in net working capital 10,508 7,131
Change in net working capital
Change in inventories -4,405 -3,363
Change in current receivables -1,873 10,766
Change in interest-free current liabilities 5,930 4,794
Change in net working capital, total -348 12,197
 10,160 19,328

Other purchases of non-current assets -5,850 -5,168
Proceeds from sale of business - 400
Proceeds from sale of other non-current assets 362 1,621
 -5,487 -3,147
 4,673 16,180
1 January—
31 December
EUR thousand 2022 2021

Draw-down of non-current loans 24,000 -
Repayments of non-current loans -31,000 -
Change in loan receivables (decrease +, increase -) 309 48
Draw-down of current loans 6,269 -
Repayments of current loans -8,232 -12,144
Return of capital -2,529 -1,686
 -11,182 -13,782
 1,882 1,194
Net increase (- decrease) in cash and cash equivalents -4,628 3,593
Cash and cash equivalents at beginning of period 26,852 23,259
Cash and cash equivalents at end of period 22,224 26,852
Net increase (- decrease) in cash and cash equivalents -4,628 3,593
1)
Cash flow supplemental information
The above figures cannot be directly derived from the statements of financial position.
Glaston Annual Review 2022 104
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Supplemental information for statement of cash flows
1 January—31 December
EUR thousand 2022 2021
Cash and bank 22,224 26,852
Total cash and cash equivalents 22,224 26,852

Adjustments
Depreciation, amortization and impairments 7,681 7,924
Changes of provision 845 -1,015
Financing items 2,899 3,945
Taxes 1,649 49
Others -2,883 -2,421
Adjustments Total 10,191 8,481

Proceeds from sale of business* - 400
 - 400
Total cash outflow on lease liablities in cash flow from
operating activities -3,563 -3,184
* On 30 September 2021, Glaston divested its glass handling business to Cimec Oy
Glaston Annual Review 2022 105
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
1. General accounting policies

1.1. Basic information
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 Nasdaq
Helsinki Ltd. Small Cap in Helsinki, Fin-
land. Glaston Corporation is the parent
of Glaston Group and its registered
office is at Lönnrotinkatu 11, 00120 Hel-
sinki, Finland.
Glaston Group is an international
glass technology company. Glaston is
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 Glaston Group are
organized in three reportable seg-
ments which consists of operating
segments.
The Board of Directors of Glas-
ton Corporation has in its meeting
on 8 February 2023, 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.
1.2. Basis of preparation
The financial statements have been
prepared on a going concern basis.
The consolidated financial state-
ments 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 Compa-
nies' Act.
The consolidated financial state-
ments include the financial state-
ments 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 subsid-
iaries 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 consoli-
dated 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.
1.3 Consolidation principles
The consolidated financial statements
include the parent and its subsidi-
aries. 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.
Other shares, i.e. shares in com-
panies in which Glaston owns less
than 20 percent of voting rights, are
classified as assets recognized at fair
value through other comprehensive
income, 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 elim-
inated 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.
Transactions in Foreign Currency
In their own day-to-day accounting
the Group companies translate trans-
actions 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
Glaston Annual Review 2022 106
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
unsettled balances of foreign cur-
rency 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.
1.4. Estimates and assessments
by Management
The preparation of financial state-
ments 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 appli-
cable 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 acqui-
sition 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; esti-
mates of the amount and probability
of provisions and actuarial assump-
tions used in defined benefit plans.
The critical accounting estimates
and judgments are described in more
detail in the notes.
1.5. Applied New and Amended
IFRS Standards and IFRIC inter-
pretations
At the beginning of the financial year,
no new standards or amendments
to standards have entered into force
that would have had a material effect
on the Glaston Group's financial
statements.
In addition to the standards and
interpretations presented in the
financial statements for 2022, The
Group will adopt IFRS standards, IFRIC
interpretations and changes to exist-
ing standards and interpretations that
enter into effect in 2023. These are not
estimated to have a material effect
on Glaston's consolidated financial
statements.
Glaston Annual Review 2022 107
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.1. Reporting segments .......................................................109
2.2. Revenue from contracts with customer ............. 113
2.3. Other operating income ................................................ 116
2.4. Materials and other operating expenses.............117
2.5. Employee benefits and number of personnel .. 118
2.6. Share-based incentive plans ......................................119
2.7. Pensions benefits .............................................................. 122
2.8. Financial income and expenses............................... 125
2.9. Income taxes ........................................................................126
2.10. Earnings per share ............................................................. 131
2. Group performance
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.1. Reporting segments
Accounting policy
Glaston’s reportable segments are Glaston Heat Treatment,
Glaston Insulating Glass, Glaston Automotive & Display . The
reportable segments consist of operating segments and
they comply with the group’s accounting and valuation prin-
ciples. In inter-segment transactions, Glaston complies with
the same commercial terms and conditions as in its third
party transactions.
Segment assets include external trade receivables and
inventory, and segment liabilities include external trade pay-
ables and advance payments received. In addition, segment
assets and liabilities include business related prepayments
and accruals as well as other business related receivables
and liabilities. Segment assets and liabilities do not include
loan receivables, prepayments and receivables related
to financial items, interest-bearing liabilities, accruals and
liabilities related to financial items, income and deferred tax
assets and liabilities nor cash and cash equivalents.
2.1. Reporting segments
Glaston Annual Review 2022 109
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
EUR thousand
2022 Heat Treatment Insulating Glass Automotive & Display Total segments Unallocated Total
External net sales 85,027 90,107 37,471 212,605 915 213,520
Internal net sales 11 2 0 13 -13 -
Total net sales 85,038 90,109 37,471 212,618 902 213,520
Operating result 2,325 4,877 289 7,491 149 7,640
Financial items - - - - -2,899 -2,899
Income taxes - - - - -1,649 -1,649
 2,325 4,877 289 7,491 -4,400 3,091
Segment assets 65,847 72,467 31,278 169,592 - 169,592
of which investments 2,616 1,668 1,566 5,850 - 5,850
Other assets - - - - 25,301 25,301
Total assets 65,847 72,467 31,278 169,592 25,301 194,892
Segment liabilities 42,271 31,046 7,236 80,554 - 80,554
Other liabilities - - - - 45,901 45,901
Total liabilities 42,271 31,046 7,236 80,554 45,901 126,455
Operative net working capital -18,874 23,431 25,772 30,329 198 30,528
Reporting segments
Glaston Annual Review 2022 110
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
EUR thousand
2021 Heat Treatment Insulating Glass Automotive & Display Total segments Unallocated Total
External net sales 74,652 81,611 25,593 181,857 805 182,662
Internal net sales - 266 3 269 -269 -
Total net sales 74,652 81,877 25,596 182,126 536 182,662
Operating result 599 4,589 -90 5,098 7 5,105
Financial items - - - - -3,945 -3,945
Income taxes - - - - -49 -49
Result for the reporting period 599 4,589 -90 5,098 -3,987 1,111
Segment assets 67,190 67,802 32,193 167,185 - 167,185
of which investments 1,708 2,854 606 5,168 - 5,168
Other assets - - - - 30,099 30,099
Total assets 67,190 67,802 32,193 167,185 30,099 197,283
Segment liabilities 37,677 30,300 5,722 73,700 - 73,700
Other liabilities - - - - 54,262 54,262
Total liabilities 37,677 30,300 5,722 73,700 54,262 127,962
Operative net working capital -18,986 -4,556 7,937 -15,605 -105 -15,709
Non-cash income and expenses included in operating result
(1
2022 2021
Segment total 1,142 -596
Unallocated - -
Total non-cash expenses and income 1,142 -596
Non-cash income and expenses in
2022 included the following items:
impairment losses of trade receiva-
bles EUR 0.1 million, impairment losses
of inventory EUR 0.2 million, changes
in provisions EUR 0.8 million.
1)
Excluding impairment
Non-cash income and expenses
in 2021 included the following items:
impairment losses of trade receiv-
ables EUR -0.7 million, impairment
losses of inventory EUR -0.3 million,
changes in provisions EUR 0.4 million.
Glaston Annual Review 2022 111
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Personnel Entity-wide disclosures
Number of personnel at the end of the year by segment 2022 2021
Heat Treatment 292 283
Insulating Glass 370 359
Automotive & Display 119 103
Total Segments 781 74 5
Unallocated 2 5
Total Glaston Group 783 750
Net sales by product groups 2022 2021
Goods sold 204,534 173,735
Services rendered 8,986 8,927
Total 213,520 182,662
Net sales by country by destination 2022 2021
Finland 5,326 4,300
Other EMEA* 106,895 91,378
Americas* 60,861 55,447
APAC* 40,439 31,536
Total 213,520 182,662
Assets by country 2022 2021
Finland 56,114 66,208
Other EMEA* 105,746 95,469
Americas* 13,832 17,388
APAC* 19,200 18,218
Total 194,892 197,283
Number of personnel at the end of the year by
geographical location 2022 2021
Finland 195 184
Other EMEA* 377 364
Americas* 50 49
APAC* 161 153
Total 783 750
*EMEA = Europe, the Middle East and Africa
Americas = North, Central and South America
APAC = China and the rest of the Asia-Pacific area
Glaston's revenues from any single external customer do not exceed 10 per cent
of Glaston's total revenue.
Glaston Annual Review 2022 112
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.2. Revenue from contracts with customer
2.2. Revenue from contracts with customer
Accounting policy
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 dif-
ferences arising from trade receivables are recognized as sales adjustments.
Revenue from the sale of goods is recognized at a specific date or within a certain
period, according to when the buyer receives the goods or gains control. Normally,
this takes place at the date of the delivery in accordance with the terms of delivery.
Revenue from services rendered and repair work is recognized when the service has
been rendered or the work has been completed. Revenue is recognized in an amount
that reflects the consideration to which the entity expects to be entitled in exchange
for goods delivered or services rendered.
In satisfying the terms of IFRS 15, Glaston recognizes the revenue from tailor-made
glass processing machine deliveries over time. As a revenue recognition practice,
Glaston applies the cost-to-cost method, i.e. the share of accumulated project costs
compared to total estimated costs is used as the degree of completion. Revenue rec-
ognition takes place over time, according to when costs accumulate and are recog-
nized for the project.
Contractual receivables are recognized when project billing is lower than revenue
recognized based on the progress of the project and, similarly, advances received and
contractual liabilities are recognized if project billing exceeds the revenue recognized
on the basis of the project.
Contractual liabilities are recognized as revenue as the project is completed. Pro-
jects subject to partial revenue recognition are, as a rule, completed in less than a year
from start-up.
Estimates and assessments by Management
In satisfying the terms of IFRS 15, Glaston recognizes the
revenue from tailor-made glass processing machine
deliveries over time. As a revenue recognition practice,
Glaston applies the cost-to-cost method, i.e. the share of
accumulated project costs compared to total estimated
costs is used as the degree of completion. Revenue
recognition takes place over time according to when
costs accumulate and are recognized for the project.
Costs attributable to a project for which revenue is not
yet recognized are included in inventories as construc-
tion contracts. Estimates are monitored and updated
monthly and changes in revenue recognition are rec-
ognized in the same month as a forecast is changed.
Forecasts are related to material and wage costs and to
project overheads, which may result in a risk of a greater
increase in a project’s overall costs than forecast. Other
risks related to the project and its profitability are unfore-
seen technical problems with supplied and installed
equipment, which may give rise to repair costs. If project
costs exceed the revenue of a project subject to over
time revenue recognition, the loss is recognized for the
period in which it is identified.
Glaston Annual Review 2022 113
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Revenue from contracts with customer
Classification of net sales
EUR thousand
2022 Heat Treatment Insulating Glass Automotive & Display Total segment Unallocated Total
External net sales 85,027 90,107 37,471 212,605 915 213,520
Internal net sales 11 2 0 13 -13 -
Total net sales 85,038 90,109 37,471 212,618 902 213,520
Revenue recognition
Over time 75,250 59,870 12,306 147,425 - 147,425
At a point in time 9,789 30,240 25,165 65,193 902 66,095
Total net sales 85,038 90,109 37,471 212,618 902 213,520
2021 Heat Treatment Insulating Glass Automotive & Display Total segment Unallocated Total
External net sales 74,652 81,611 25,593 181,857 805 182,662
Internal net sales - 266 3 269 -269 -
Total net sales 74,652 81,877 25,596 182,126 536 182,662
Revenue recognition
Over time 53,399 45,459 10,332 109,190 - 109,190
At a point in time 21,253 36,418 15,264 72,936 536 73,472
Total net sales 74,652 81,877 25,596 182,126 536 182,662
Glaston Annual Review 2022 114
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Contract assets and liabilities
31.12.2022 31.12.2021 1.1.2021
Contract assets
Trade receivables 6,459 4,372 4,239
Project income receivables 49,897 45,109 27,347
Contract assets total 56,356 49,481 31,586
Contract liablities
Advance payments -47,356 -35,160 -35,339
Project expense liablities -3,936 -2,063 -1,935
Contract liablities total -51,292 -37,222 -37,274
Gross contract assets/liabilities 5,064 12,259 -5,689
31.12.2022 31.12.2021
Transaction price allocated to performance obligations that are partially

Allocated transaction price expected to be recognised as revenue 44,412 77,168
Glaston Annual Review 2022 115
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Accounting policy
Government or other grants are recognized 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.
2.3. Other operating income
2.3. Other operating income
Government grants
2022
Glaston Finland Oy was granted a total of EUR 179 thousand from Business
Finland's innovation finance.
Glaston Management Shanghai Co. Ltd. was granted tax cost subsidy of EUR 3
thousand.
Glaston Tianjin Co. Ltd was granted a Covid cost subsidy of EUR 16 thou-
sand.
2021
Glaston Finland Oy was granted a total of EUR 60 thousand from Business
Finland's innovation finance.
Glaston Finland Oy was granted the State Treasury's business Covid cost support
of EUR 500 thousand.
Australian branch office of Glaston Finland Oy was granted a Covid cost subsidy
of EUR 31 thousand.
Glaston Singapore Pte. Ltd. was granted a total of EUR 78 thousand from
Government Job Support Scheme (JSS).
Glaston Switzerland AG was granted a total of EUR 46 thousand subsidy
contribution for R&D project.
Other operating income
EUR thousand 2022 2021
Capital gains on sale of property,
plant and equipment 20 930
Sale of Handling business - 900
Rents 1,038 986
Government grants 198 716
Insurance compensation 15 1
Legal compensation 1,229 -
Other income 1,083 751
Other operating income total 3,583 4,284
Glaston Annual Review 2022 116
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.4. Materials and other operating expenses
2.4. Materials and other operating expenses
EUR thousand 2022 2021
Materials
Materials and supplies, purchases during the period -101,320 -82,916
Change in inventories of materials and supplies 3,393 -48
Total materials -97,926 -82,964
Other operating expenses
Leases -3,563 -3,184
Losses on sale of property, plant and equipment -33 -5
Subcontracting and maintenance -5,603 -4,331
Commissions -1,656 -1,576
Freight expenses -6,700 -5,200
Travel expenses -6,108 -3,883
External services, not production related -4,175 -3,274
IT, internet and phone -6,459 -5,948
Electricity, heating -1,201 -1,214
Marketing expenses -1,365 -845
Other expenses -3,217 -4,131
Total other operating expenses -40,120 -33,590
EUR thousand 2022 2021
Fees for professional services rendered by auditors
Auditor KPMG
Auditing -302 -321
Legal statements -15 -
Tax advisory -83 -140
Other services -12 -
Total -412 -461
EUR thousand 2022 2021
Research and development costs
Recognized in profit or loss -6,186 -5,116
Amortization of capitalized development costs during the
reporting period -1,475 -1,335
Total -7,662 -6,450
As a percentage of net sales 3,6% 4.5%
Capitalized development costs during the reporting period 3,015 1,840
The auditor of Glaston Group during the financial years of 2022 and 2021 has
been KPMG. KPMG Oy Ab fee from other than auditing was EUR 12 (0) thousand.
Fee to other audit companies was EUR 59 (17) thousand.
Glaston Annual Review 2022 117
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.5. Employee benets and number of personnel
2.5. Employee benefits and number of personnel
Information on the Group's executive management group's employee benefits
and other related party events is presented in Note 7.1.
Share-based incentive plans are described in more detail in Note 2.6. to the
consolidated financial statements.
Pension benefits are presented in more detail in Note 2.7. to the consolidated
financial statements.
EUR thousand 2022 2021
Employee benets
Wages and salaries 54,673 48,579
Pension expenses 4,506 3,789
Other personnel expenses 6,178 6,003
Total personnel expenses 65,357 58,371
Pension expenses
Defined benefit plans 343 231
Defined contribution plans 4,163 3,558
Total pension expenses 4,506 3,789
2022 2021
Number of personnel
Number of personnel, average 775 731
Personnel in Finland, end of the period 195 184
Personnel outside Finland, end of the period 588 566
Total 783 750
Glaston Annual Review 2022 118
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.6. Share-based incentive plans
2.6. Share-based incentive plans
Accounting policy
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.
The expenses arising from the incentive plans have been recognized
in profit or loss and in equity during the vesting periods. Equity-settled
share-based payment transactions are valued at the time of grant.
Glaston has recorded the share-based incentive plans as equity-settled
share-based payment transactions.
Share-based incentive plans
In January 2022, the Board of Direc-
tors of Glaston Corporation resolved
on the share-based incentive plan
2022−2026 for the Group key employ-
ees in accordance with the terms and
conditions materially corresponding
to the terms and conditions of the
share-based incentive plan 2019−2023.
The aim of the incentive plan is to
align the objectives of the sharehold-
ers and the key employees in order
to increase the value of the company
in the long term, to retain the key
employees at the company, and to
offer them a competitive incentive
plan that is based on earning and
accumulating the company’s shares.
The Performance Share Plan
2022−2026 comprises three per-
formance periods, calendar years
2022−2024, 2023−2025, and 2024−2026.
From the Performance Share Plan
2019 – 2023 has been comprised
two performance periods, calendar
years 2020 – 2022 sekä 2021 – 2023.
The Board of Directors resolves on the
plan’s performance criteria and on the
performance levels at the beginning
of each performance period. The key
employees will receive the compa-
ny’s shares as a reward, if the per-
formance levels of the performance
criteria, set by the Board of Directors,
are achieved. As a rule, no reward will
be paid, if a key employee’s employ-
ment or service terminates before the
reward payment.
The CEO and President and each
member of the Executive Manage-
ment Group of the Company must
hold 50% of the net number of shares
he or she has received on the basis
of the plan until the number of the
company’s shares he or she holds
corresponds to the value of his or her
gross annual base salary. Such num-
ber of shares must be held as long as
such person’s employment or service
in a company belonging to the Group
Company continues.
Performance Period 2022-2024
The potential reward of the per-
formance period 2022−2024 will be
based on the Glaston Group’s com-
parable EBITA and Service Net Sales
during the period of 1 January 2022−31
December 2024. If the performance
levels of the performance criteria for
the performance period 2022−2024
are achieved in full, the payable
rewards correspond to a maximum
total of 700,000 Glaston Corporation
shares, including also the proportion
to be paid in cash.
The potential reward from the
performance period 2022−2024 will
be paid in 2025 in a manner resolved
by the Board of Directors, either
partly in the company’s shares and
partly in cash, in which case the cash
proportion is intended to cover taxes
and tax-related costs arising from the
Glaston Annual Review 2022 119
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
reward to the key employee, or fully
in cash.
The reward to be paid on the basis
of the plan may be reduced if the
reward cap set by the Board of Direc-
tors is reached.
In total 16 key persons, including the
CEO and President and the mem-
bers of the Executive Management
Group, belong to the target group of
the plan in the performance period
2022–2024.
Performance Period 2021-2023
The potential reward of the perfor-
mance period 2021–2023 will be based
on the Glaston Group’s comparable
EBITA and Services Net Sales during a
period of 1 January 2021—31 December
2023. If the performance levels of the
performance criteria for the perfor-
mance period 2021–2023 are achieved
in full, the payable rewards corre-
spond to a maximum total of 700,000
Glaston Corporation shares, including
also the proportion to be paid in cash.
The potential reward from the
performance period 2021–2023 will be
paid in 2024 in a manner resolved by
the Board of Directors, either partly
in the company’s shares and partly in
cash, in which case the cash propor-
tion is intended to cover taxes and
tax-related costs arising from the
reward to the key employee, or fully in
cash.
The reward to be paid on the basis
of the plan may be reduced, if the
reward cap set by the Board of Direc-
tors is reached. In total 15 key employ-
ees, including the CEO and members
of the Executive Management Group,
belong to the target group of the plan
in the performance period 2021–2023.
Performance Period 2020-2022
The reward of the performance
period 2020–2022 is be based on the
Glaston Group’s comparable EBITA
and average gearing during a period
of 1 January 2020—31 December 2022.
Based on the performance criteria for
the performance period 2020–2022,
the payable rewards correspond to
approximately total of 29 000 Glaston
Corporation shares, including also the
proportion to be paid in cash.
The reward from the performance
period 2020–2022 will be paid in the
company shares in 2023. A total of 9
key employees belong to the target
group on 31 December 2022.
Glaston Annual Review 2022 120
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Basic information of the share-based plans 2022-2024 2021-2023 2020-2022
Grant date 27 January 2022 23 June 2021 14 February 2020
Nature of the plan Shares/cash Shares/cash Shares/cash
Target group Key personnel Key personnel Key personnel
Maximum amount of shares
(including cash)
700,000 shares 700,000 shares 500,000 shares
Total amount of shares at the end of the performance period
(including cash)
- - 28,967
Performance period begins 1 January 2022 1 January 2021 1 January, 2020
Performance period ends 31 December 2024 31 December 2023 31 December, 2022
End of restriction period/payment 1 April 2025 1 April 2024 1 April, 2023
Vesting conditions Group's comparable EBITA
and Service Net Sales
Group's comparable EBITA
and Service Net Sales
Group's comparable EBITA
and average net gearing
Service period Service period Service period
Maximum contractual life, years 3 3 3
Remaining contractual life, years 2 1 0
Number of persons involved 31 December 2022 16 15 9
 2022 2021
Effect on the result of the reporting period, EUR thousand 215 206
Glaston Annual Review 2022 121
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.7. Pension benets
2.7. Pension benefits
Estimates and assessments by Management
Calculation of defined benefit pensions and other defined long-term
employee benefits requires choosing certain assumptions which actu-
aries 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.
Accounting policy
The Group has various pension plans in accordance with the local prac-
tices 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.
The obligations for defined benefit plans have been calculated sep-
arately 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 recog-
nized in other comprehensive income with no subsequent recycling to
profit or loss.
Glaston Annual Review 2022 122
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
1.1.2021 20,939 20,385 554
Interest expense / income 43 42 1
Current service cost 837 - 837
Past service cost -420 - -420
Employee contributions 493 493 -
Employer contributions - 558 -558
Benefits paid 336 336 -
Actuarial gains (-) / losses (+) -1,857 - -1,857
Other gains (-) / losses (+) on settlement 10 - 10
Return on plan assets (excluding amounts included in the net
interest expense) - 592 -592
31.12.2021 20,381 22,406 -2,025
1.1.2022 21,382 23,506 -2,124
Interest expense / income 92 100 -8
Current service cost 720 - 720
Past service cost -9 - -9
Employee contributions 544 544 -
Employer contributions - 611 -611
Benefits paid 1,740 1,740 -
Actuarial gains (-) / losses (+) -2,942 - -2,942
Other gains (-) / losses (+) on settlement 11 - 11
Return on plan assets (excluding amounts included in the net
interest expense) - -4,275 4,275
31.12.2022 21,536 22,225 -688
The Group has a defined benefit
pension plan in Glaston Switzerland
AG, Switzerland. The Group has also
defined contribution pension plans,
of which the charge to the income
statement was EUR 4.4 (3.9) million.
In addition to defined benefit pen-
sions, Glaston has no other long-term
defined employee benefits in 2022
and 2021.
EUR thousand 2022 2021
Present value of
unfunded obligations 21,536 20,380
Fair value of plan
assets 22,225 22,404
Total deficit of
defined benefit
pension plans 689 2,024
Difference 689 2,024
Amounts in the
statement of

1.1. Net liability
(asset +) 2,018 530
Liabilities - -6
Assets -2,707 2,024
Adjustment to asset
ceiling 689 -
Net liability (asset +) - 2,018
EUR thousand
Present value
of obligation
Fair value
on plan assets Total
Pension benets
Amounts in the statement of
nancial position relating to
dened benet pension plans
Amounts in the statement of nancial position relating to other
long-term employee benets
EUR thousand
Present value
of obligation
Fair value
on plan assets Total
Glaston Annual Review 2022 123
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
EUR thousand 2022 2021
Cash and cash equivalents 667 672
Equity instruments 7,779 7,842
Debt instruments 7,112 7,170
Real estate 5,556 4,481
Other 1,111 2,240
Total plan assests 22,225 22,404
EUR thousand Changes in parameter 2022 2021
Discount rate - 0.25% 22,245 21,209
Discount rate + 0.25% 20,869 19,610
Interest rate on retirement
savings capital - 0.25% 21,275 20,112
Interest rate on retirement
savings capital + 0.25% 21,803 20,655
Salary increase - 0.25% 21,451 20,271
Salary increase + 0.25% 21,616 20,491
Life expectancy + 1 year 21,859 20,791
Life expectancy - 1 year 21,208 19,969
The pension foundation is able to
adapt the contribution and benefits.
In case of underfunding, there is a
risk for the employer to be involved in
additional payments to the foundation
Actuarial assumptions
2022

2021

Discount rate, % 2,20% 0.40%
Future salary increase, % 1,00% 1.00%
Duration in years 13,1 15.7
Plan asset classes
Sensitivity analysis, dened benet obligation
The Group expects to contribute
EUR 635 thousand to its other long-
term employee benefit plans in 2023.
Glaston Annual Review 2022 124
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.8. Financial income and expenses
2.8. Financial income and expenses
EUR thousand 2022 2021
Interest income
Interest income on loans and receivables 121 333
Total interest income 121 333
Dividend income
Dividend income measured at fair value through other
comprehensive income -0 0
Interest expenses
Interest expenses on financial liabilities measured at
amortized cost -716 -1,363
Interest expenses on lease liabilities -438 -469
Other interest expenses -1 -10
Total interest expenses -1,155 -1,841

On financial liabilities measured at amortized cost -730 -
On bank fees -278 -223
Currency derivatives forward points -6 -2
Guarantee expenses -79 -362
Impairment losses of loan receivables 155 -1,869
Other financial expenses -207 -88
Total other financial expenses -1,145 -2,544
Foreign exchange differences, net
On financial liabilities measured at amortized cost 0 -113
On loans and receivables -772 218
Other foreign exchange gains and losses 51 2
Total foreign exchange differences -721 107
 -2,899 -3,945
EUR thousand 2022 2021
Net foreign exchange differences in operating result
Net sales -1,039 -741
Purchases 113 450
Other operating expenses -2 54
Total -928 -237
Derivatives recognized in prot or loss
Currency derivatives, hedge accounting
Realized currency derivatives recognized in net sales -1,457 -574
Currency derivatives forward points -6 -2
Total -1,463 -575
Recognized in other comprehensive income
Fair value changes of financial assets measured at fair value
through other comprehensive income - -2,834
Total in other comprehensive income - -2,834
Borrowing costs were not capitalized in Glaston Group in 2022 or 2021 as Glaston
has not had any qualifying assets as defined in IAS 23 Borrowing Costs.
Glaston Annual Review 2022 125
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.9. Income taxes
2.9. Income taxes
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 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 car-
rying 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.
Changes in tax rates have been taken into account when calculating
deferred taxes. Corporate tax rate in Finland is 20.0 percent.
Deferred tax liability has not been recognized in 2022 or 2021 of the
undistributed earnings of Finnish or foreign subsidiaries as the major-
ity of such earnings can be transferred to the owner without any tax
consequences.
Principal temporary differences arise from depreciation and amorti-
zation of property, plant and equipment and intangible assets, defined
benefit plans, recognition of net assets of acquired companies at fair value,
through other comprehensive income and derivative instruments at fair
value, inter-company inventory profits, share-based payments and con-
firmed tax losses.
Other temporary differences in deferred tax assets consist of expenses
which were not tax deductible in the reporting period, but will be tax
deductible in future. Other temporary differences in deferred tax liabli-
ties consist of, among other things, differences between local and IFRS
accounting principles, which create timing differences in recognizing
revenue and expenses.
Accounting policy
Glaston Annual Review 2022 126
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Estimates and assessments by management
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 tem-
porary 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.
EUR thousand 2022 2021
Income tax charge in income statement
Current income tax charge -780 -1,142
Adjustments in respect of current income tax of
previous years -257 309
Deferred tax charge -611 74 6
Other -2 38
Total income tax charge -1,649 -49
Income taxes recognized in other
comprehensive income and in equity
Deferred taxes
Share-based incentive plan recognized in equity -37 -34
Actuarial gains and losses arising from defined benefit
plans 4 45 -567
Fair value changes of financial assets measured at fair
value through other comprehensive income -65 -
Total taxes recognized in other comprehensive income
and in equity 343 -601
Income taxes
Glaston Annual Review 2022 127
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
EUR thousand 2022 2021
Reconciliation of income tax expense
calculated at statutory tax rates with income
tax expense in the income statement
Profit before taxes 4,740 1,160
Tax at the tax rate applicable to the parent -948 -232
Difference due to different tax rates of foreign
subsidiaries 18 -494
Tax exempt income and non-deductible expenses -1,431 -467
Losses, where no deferred tax benefit is recognized -1,108 -1,676
Deferred taxes recognized during the reporting period
in respect of previous years' temporary differences 1,125 727
Withholding taxes and adjustments in respect of
current income tax of previous periods -254 347
Use of losses for which deferred tax has not been
recognized 918 812
Deferred tax assets recognized in respect of confirmed
losses in previous years 31 935
Income taxes in the income statement -1,649 -49
Effective tax rate 35% 4%
The Group companies have tax losses totalling EUR 31.7 (40.1) million, which can
be applied against future taxable income. A deferred tax asset has not been
recognized for all tax losses, due to the uncertainty regarding the extent to which
they can be used. Tax losses expire in the period 2023-2032. Some of the losses
do not have an expiration date. Over the next two years, losses of approximately
EUR 1 million will expire.
EUR thousand 2022 2021
Tax assets and tax liabilities
Deferred tax assets 2,139 2,643
Assets for current tax - 137
Deferred tax liabilities 9,096 9,263
Liabilities for current tax 1,126 763
Glaston Annual Review 2022 128
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Total change in deferred taxes in income statement (- tax expense) -611
Untaxed reserves 161 - 26 - - 187
Defined benefit employee benefits 567 - - - -445 123
Fair value changes of financial assets -1 - - - - -1
PPA allocation 5,371 - -1,164 - - 4,207
Other temporary differences 3,165 121 1,201 - 94 4,581

position 9,263 121 63 - -351 9,096
Unrealized internal profits, inventory 174 - -60 - - 114
Confirmed tax losses carried forward 1,262 - -524 - - 738
Share-based payments -31 - - 37 - 6
Other temporary differences 1,239 35 36 - -29 1,281

position 2,643 35 -548 37 -29 2,139
Reconciliation of deferred tax assets and deferred tax liabilities 2022
Deferred tax assets 1 January
Exchange
difference
Change in income
statement (- tax expense)
Recognized in
equity
Recognized in other
comprehensive
income 31 December
Deferred tax liabilities 1 January
Exchange
difference
Change in income
statement (+ tax expense)
Recognized in
equity
Recognized in other
comprehensive
income 31 December
Glaston Annual Review 2022 129
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Deferred tax liabilities 1 January
Exchange
difference
Change in income
statement (+ tax expense)
Recognized in
equity
Recognized in other
comprehensive
income 31 December
Untaxed reserves -351 - 512 - - 161
Defined benefit employee benefits -603 - - - 1,170 567
Fair value changes of financial assets -1 - - - - -1
PPA allocation 5,871 - -501 - - 5,371
Other temporary differences 2,849 33 207 -7 83 3,165

position 7,764 33 219 -7 1,253 9,263
Deferred tax assets 1 January
Exchange
difference
Change in income
statement (- tax expense)
Recognized in
equity
Recognized in other
comprehensive
income 31 December
Unrealized internal profits, inventory 137 - 37 - - 174
Confirmed tax losses carried forward 600 - 662 - - 1,262
Share-based payments -6 - - -25 - -31
Other temporary differences 894 78 266 - - 1,269

position 1,625 78 965 -25 - 2,643
Reconciliation of deferred tax assets and deferred tax liabilities 2021
Total change in deferred taxes in income statement (- tax expense) 74 6
Glaston Annual Review 2022 130
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2.10. Earnings per share
2.10. Earnings per share
Earnings per share
Basic earnings per share are calculated by dividing the net result attrib-
utable 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. In calculating diluted
earnings per share, the weighted average number of shares takes into
account the dilutive effect of the share-based compensation plan.
Earnings per share
EUR thousand 2022 2021

of the parent: 3,091 1,111
Number of shares
Weighted average number of shares outstanding 84,289,911 84,289,911
Diluted weighted average number of shares
outstanding 85,043,569 84,772,089

to equity holders of the parent
Basic and diluted, Group total 0,037 0,013
Glaston Annual Review 2022 131
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
3.1. Intangible assets ................................................................ 133
3.2. Property, plant and equipment ................................136
3.3. Right-of-use assets .......................................................... 139
3.4. Depreciation, amortization and
impairment of assets ....................................................... 141
3. Intangible assets and property,
plant and equipment
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
3.1. Intangible assets
3.1. Intangible assets
Intangible asset is recognized in the statement of financial position if its cost
can be measured reliably and it is probable that the expected future eco-
nomic 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 esti-
mated useful lives. Intangible assets with indefinite useful life are not amor-
tized, but tested annually for impairment. Glaston's intangible rights include
patents, trademarks, softwares, and other intangible rights.
The accounting for cloud computing arrangements depends on whether
the cloud-based software classifies as a software intangible asset or a
service contract. Those arrangements where the Company does not have
control over the underlying software are accounted for as service contracts
providing the Company with the right to access the cloud provider’s appli-
cation software over the contract period. The ongoing fees to obtain access
to the application software, together with related configuration or customi-
sation costs incurred, are recognised under Other operating expenses when
the services are received. Prepayments paid to the cloud vendor for custom-
izing services which are not distinct are recognized over the contract period.
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:
Accounting policy
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 recog-
nized in profit or loss are recognized in operating expenses.
Borrowing costs are capitalized as part of the acquisition cost of intangible
assets if the intangible assets are qualifying assets as defined in IAS 23 Bor-
rowing Costs. In 2022 or 2021 Glaston did not have any qualifying assets.
Goodwill represents the excess of the acquisition cost over fair value of
the assets less liabilities of the acquired entity. Goodwill arising from the
Glaston Annual Review 2022 133
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
acquisition of foreign entities of acquisitions is treated as an asset of the
foreign entity and translated at the closing exchange rates at the end of
the reporting period.
Acquisitions have been recognized in accordance with IFRS 3. Pur-
chase consideration has been allocated to intangible assets, if they have
met the recognition criteria stated in IAS 38 (Intangible Assets).
In accordance with IFRS 3 Business Combinations, goodwill is not
amortized. The carrying amount of goodwill is tested annually for impair-
ment. 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.
Glaston has no other intangible assets than goodwill with indefinite
useful life. All intangible assets with the exception of goodwill are amor-
tized over their useful lives.
Estimates and assessments by Management
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.
Customer relationships, trademarks, product development assets and
other intangible assets acquired in a business combination are measured
at fair value at the acquisition date and subsequently amortized over their
estimated useful lives.
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 develop-
ment 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 2022, Glaston had EUR 7.6. (6.0) million of capitalized development
expenditure on its statement of financial position.
Glaston Annual Review 2022 134
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Intangible assets
EUR thousand
2022
Capitalized
development
expenditure
Intangible
rights
Customer
relations Goodwill Advances paid Total
2021
Acquisition cost at beginning of year 23,123 14,760 11,400 52,067 3,590 104,941
Other increases 254 941 - - 2,017 3,212
Reclassifications and other changes 2,207 24 6 - - -2,492 -39
Exchange differences 78 241 - 277 51 648
Acquisition cost at end of year 25,662 15,975 11,400 52,345 2,758 108,140
Accumulated amortization and impairment at beginning
of year -20,926 -11,384 -1,995 6,260 - -28,045
Amortization during the reporting period 32 211 - - - 24 4
Reclassifications and other changes -1,338 -1,723 -1,140 - - -4,200
Exchange differences -71 -231 - - - -302
Accumulated amortization and impairment at end of year -22,334 -13,116 -3,135 6,260 - -32,327
Carrying amount at end of year 3,328 2,859 8,265 58,605 2,758 75,813
Acquisition cost at beginning of year 25,662 15,975 11,400 52,345 2,758 108,140
Other increases 212 72 - - 3,419 3,702
Decreases - -229 - - -6 -235
Reclassifications and other changes 1,472 27 - - -1,499 0
Exchange differences -10 211 - 58 84 342
Acquisition cost at end of year 27,336 16,056 11,400 52,402 4,756 111,950
Accumulated amortization and impairment at beginning of
year -22,334 -13,117 -3,135 6,260 - -32,327
Accumulated amortization relating to decreases and
transfers - 197 - - - 197
Amortization during the reporting period -1,468 -859 -1,140 - - -3,467
Exchange differences 4 -215 - - - -210
Accumulated amortization and impairment at end of year -23,806 -13,994 -4,275 6,260 - -35,815
Carrying amount at end of year 3,530 2,062 7,125 58,662 4,756 76,135
Glaston Annual Review 2022 135
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
3.2. Property, plant and equipment
3.2. Property, plant and equipment
Accounting policy
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 labor 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
The buildings include the investment property which is part of the plant
situated in Tianjin, China. This is reported as an investment property and has
been leased since 2016 under a 10-year agreement.
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 sep-
arate components, are capitalized and depreciated over their useful lives.
Ordinary maintenance and repair charges are expensed as incurred.
Borrowing costs are capitalized as part of the acquisition cost of tangible
assets if the tangible assets are qualifying assets as defined in IAS 23 Borrow-
ing Costs. In 2022 or 2021 Glaston did not have any qualifying assets.
Glaston Annual Review 2022 136
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Glaston has given liens on chattel
as security for liabilities. These are pre-
sented in Note 5.8. At the end of 2022
and 2021, Glaston did not have any
pledged property, plant and equip-
ment or intangible assets as security
for liabilities.
At the end of 2022 and 2021, Glaston
had not contractual commitments for
the acquisition of property, plant and
equipment.
In 2022 or 2021, Glaston did not
receive any material third party com-
pensation for items of property, plant
and equipment that were impaired,
lost or given up.
Glaston China has reported the
expansion of its factory as investment
property. In 2016, the expansion part
was leased out to a third party for a
period of ten years. Rental income in
2022 was EUR 0.3 million. Costs related
to investment property were EUR 0.2
million.
EUR thousand
2022
Land and
water areas
Buildings and
constructions
Investment
property
Machinery
and
equipment
Other tangible
assets
Advances
paid and
assets under
construction
Total property,
plant and
equipment
Right-of-use
assets
Total property,
plant and
equipment and
right-of-use
assets
Acquisition cost at beginning
of year 6,706 28,385 2,827 19,174 868 613 58,573 18,384 76,957
Other increases 2 245 - 1,007 - 894 2,147 963 3,111
Decreases - - - -970 -88 -11 -1,069 - -1,069
Reclassifications and other
changes - -118 - -25 391 -707 -459 303 -156
Exchange differences - 368 -63 127 15 - 4 47 - 4 47
Acquisition cost at end of year 6,708 28,879 2,764 19,312 1,187 789 59,639 19,651 79,290
Accumulated depreciation and
impairment at beginning of year - -18,586 -852 -15,691 -570 - -35,699 -11,083 -46,782
Accumulated depreciation
relating to decreases and
transfers - - - 605 88 - 693 - 693
Depreciation during the
reporting period - -702 -149 -875 -153 - -1,879 -2,324 -4,203
Reclassifications and other
changes - 118 - 163 - - 281 - 281
Exchange differences - -315 25 -113 -12 - -415 - -415
Accumulated depreciation and
impairment at end of year - -19,485 -976 -15,911 -647 - -37,019 -13,407 -50,426
Carrying amount at end of year 6,708 9,395 1,788 3,401 540 789 22,620 6,245 28,865
Glaston Annual Review 2022 137
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
EUR thousand
2021
Land and
water areas
Buildings and
constructions
Investment
property
Machinery
and
equipment
Other tangible
assets
Advances
paid and
assets under
construction
Total property,
plant and
equipment
Right-of-use
assets
Total property,
plant and
equipment and
right-of-use
assets
Carrying amount of machinery and equipment used in
production 31 December, 2022 2,662
Carrying amount of machinery and equipment used in
production 31 December, 2021 2,736
Acquisition cost at beginning
of year 5,910 28,391 2,535 18,584 716 1,248 57,384 16,281 73,665
Other increases 1,177 - - 267 1 510 1,956 1,834 3,790
Decreases -381 -863 - -759 -55 -94 -2,153 - -2,153
Reclassifications and other
changes - - - 704 182 -1,052 -165 269 104
Exchange differences - 857 292 378 24 - 1,551 - 1,551
Acquisition cost at end of year 6,706 28,385 2,827 19,174 868 613 58,573 18,384 76,957
Accumulated depreciation and
impairment at beginning of year - -17,857 -632 -15,456 -313 - -34,259 -9,368 -43,627
Accumulated depreciation
relating to decreases and
transfers - 605 - 702 55 - 1,363 - 1,363
Depreciation during the
reporting period - -655 -138 -908 -122 - -1,823 -1,929 -3,752
Reclassifications and other
changes - - - 315 -168 - 147 222 369
Exchange differences - -680 -81 -344 -21 - -1,127 - -1,127
Accumulated depreciation and
impairment at end of year - -18,586 -852 -15,691 -570 - -35,699 -11,075 -46,774
Carrying amount at end of year 6,706 9,798 1,975 3,484 298 613 22,874 7,310 30,184
Glaston Annual Review 2022 138
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
3.3. Right-of-use assets
3.3. Right-of-use assets
Accounting policy
Leases are recognized in the lessee’s statement of financial position. The
lessee recognizes in the statement of financial position a right-of-use
asset item, based on its right to use the said asset, and a lease liabil-
ity item corresponding to the present value of the asset, based on the
obligation to make the lease payments. Glaston adopts the exemptions
permitted by IFRS 16 for leases of 12 months or less and for assets of low
value and continues to treat them as other leases, and their costs are
recognized as an expense on a straight-line basis.
Under IFRS 16 Leases, the amount of the right-of-use asset and the
liability is calculated by discounting future lease payments based on the
agreement. At the inception of the lease agreement, a lease liability is
recognized, which is determined as the present value of the rental pay-
ables.The discount rate will primarily be the interest rate implicit in the
lease, if available. In leases where the implicit interest rate is not speci-
fied, the discount rate used is the lessee’s incremental borrowing rate,
the components of which are the currency-specific reference rate, the
interest margin and any country or currency risk premium. For leases
valid until further notice, an estimate is made of the length of the lease.
Leases in the balance sheet
EUR thousand
Right-of-use assets Buildings Vehicles Others Total
Carrying amount at 1 January
2022 5,600 983 719 7,301
Additions 677 556 53 1,286
Decrease - -25 -3 -28
Depreciation expense -1,355 -621 -348 -2,324
Carrying amount at 31
December 2022 4,922 893 421 6,235
Carrying amount at 1 January
2021 6,045 678 216 6,938
Additions 774 1,308 677 2,759
Decrease - -467 - -467
Depreciation expense -1,219 -536 -174 -1,929
Carrying amount at 31
December 2021 5,600 983 719 7,301
EUR thousand
Lease liabilities 2022 2021
Carrying amount at beginning
of the period 8,551 8.204
Additions 1,320 2.221
Interest expense 438 469
Rental payment -2,743 -2.343
Carrying amount at end of
the period 7,566 8.551
Glaston Annual Review 2022 139
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Leases in prot and loss statement
EUR thousand 2022 2021
Depreciation of right-of-use assets -2,324 -1.913
Interest expense on lease liabilities -438 -469
Low value lease expense -266 -239
Short-term lease expense -145 -118
 -3,174 -2.739
The weighted average lessee's incremantal borrowing rate applied to lease
liabilities recognized in the statement of financial position at the date initial
application is 3.09%.
Maturity of lease liabilities is shown in note 5.6.
Glaston Annual Review 2022 140
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
3.4. Depreciation, amortization and impairment of assets
3.4. Depreciation, amortization and impairment of assets
Accounting policy
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. The estimated useful
lives for intangible assets are as follows: omputer software, patents, licenses,
trademarks, product rights 3-10 years, Capitalized development expenditure
5-7 years, Other intangible assets 5-10 years. 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.
Annual impairment tests for goodwill are performed during the fourth
quarter of the year. If there is, however, an indication of impairment of good-
will, the impairment tests for goodwill are performed earlier during the finan-
cial year. Tangible and intangible 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 a positive change has occurred in the estimates
of the recoverable amount after recording the impairment loss, the impair-
ment 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 deprecia-
tion, 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. These 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 esti-
mated by extrapolating the projections.
The discount rate used in arriving at the recoverable amount is the pre-tax
weighted average cost of capital, which reflects the current market assess-
ment of time as well as the value of money and of risks related to the assets
and the countries of operation. Also the industry's median capital structure
has been taken into acccount in determining the discount rate as well as
Glaston's cost of debt.
Glaston Annual Review 2022 141
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Estimates and assessments by Management
The most significant management estimates relate to impairment tests,
which require use of estimates in the calculations. In impairment test-
ing 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 assess-
ments 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.
EUR thousand 2022 2021
Depreciation and amortization
Intangible assets
Intangible rights 1,999 2,863
Capitalized development expenditure 1,468 1,338
Property, plant and equipment
Buildings and constructions 2,210 2,003
Machinery and equipment 1,840 1,611
Other tangible assets 153 122
Total depreciation and amortization 7,669 7,937
Impairment losses
Intangible assets
Capitalized development expenditure 8 -
Property, plant and equipment
Machinery and equipment 4 -12
Total impairment losses 12 -12
Total depreciation, amortization and impairment 7,681 7,924
Glaston Annual Review 2022 142
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW

calculations in 2022 Heat Treatment Technologies Insulating Glass Technologies Automotive Glass Technologies
Pre-tax discount rate 10,8% 12,1% 10,5%
Long-term growth rate 1,0% 1,0% 1,0%
Impairment of assets
Impairment testing of goodwill
Goodwill
EUR million
Cash generating unit
1 January,
2022
31 December,
2022
Heat Treatment Technologies 30,6 30,6
Insulating Glass Technologies 19,4 19,4
Automotive Glass Technologies 8,6 8,6
Total 58,6 58,7

calculations in 2021 Heat Treatment Technologies Insulating Glass Technologies Automotive Glass Technologies
Pre-tax discount rate 10.7% 14.3% 11.1%
Long-term growth rate 1.0% 1.0% 1.0%
Glaston Annual Review 2022 143
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Sensitivity analysis
The recoverable amounts used in
impairment testing are subject to
change if the assumption used in cal-
culation of the recoverable amounts
changes.
The management estimates, that
in most cases, a reasonable possi-
ble change in a key assumption do
not cause the cash generating unit's
carrying amount to exceed its recov-
erable amount. The cases in which a
reasonable possible change in a key
assumption would cause the carrying
amount of a cash generating unit to
exceed its recoverable amount are
presented in the table to the right.
The recoverable amounts of these
cash generating units exceed their
carrying amounts by 115 per cent in
the Heat Treatment Technologies
business, by 214 in the Insulating Glass
Technologies business and by 109 per
cent in the Automotive Glass Tech-
nologies business.
A change in an assumption which, other things being equal, would cause the
recoverable amount to equal the carrying amount:
Post-tax discount rate
Value assigned to the
assumption Value Change
Heat Treatment Technologies 8.7% 20.8%
Insulating Glass Technologies 8.4% 28.4%
Automotive Glass Technologies 8.5% 19.4%
Long-term growth rate
Value assigned to the
assumption Value Change
Heat Treatment Technologies 1.0% -18.1%
Insulating Glass Technologies 1.0% -65.4%
Automotive Glass Technologies 1.0% -15.9%
The costs of Heat Treatment
Machines business are estimated to
be 91 per cent of the estimated net
sales during the testing period. Should
the costs be 3 percentage points
higher, the recoverable amount, other
things being equal, would equal the
carrying amount.
The costs of Insulating Glass Tech-
nologies business are estimated to be
90 per cent of the estimated net sales
during the testing period. Should the
costs be 6 percentage points higher,
the recoverable amount, other things
being equal, would equal the carrying
amount.
The costs of Automotive Glass
Technologies business are estimated
to be 90 per cent of the estimated net
sales during the testing period. Should
the costs be 4 percentage points
higher, the recoverable amount, other
things being equal, would equal the
carrying amount.
Glaston Annual Review 2022 144
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
4.1. Inventories .............................................................................. 146
4.2. Trade and other receivables....................................... 147
4.3. Trade payables and other interest-free
liabilities ..................................................................................... 151
4.4. Provisions ................................................................................ 152
4. Net working capital
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
4.1. Inventories
4.1. Inventories
Estimates and assessments by Management
Measurement of inventories includes some management estimates.
Inventories are measured at lower of cost and net realizable value. Net
realizable 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 realizable 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.
Accounting policy
Inventories are reported at the lower of cost and net realizable value.
Cost is determined on a first in first out (FIFO) basis, or alternatively,
weighted average cost. Net realizable 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 labor, 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 nor-
mal 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 realizable value.
EUR thousand 2022 2021
Inventories
Materials and supplies 19,166 15,554
Work in process 8,217 7,856
Finished goods 4,132 3,660
Advances paid 445 207
Total inventories 31,959 27,277
Impairment losses of inventory during the period -149 -818
Reversals of impairment losses of inventory during the period 3 74 545
Total 225 -273
Glaston Annual Review 2022 146
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
4.2. Trade and other receivables
4.2. Trade and other receivables
Accounting policy
In measuring expected credit losses from trade receivables, Glaston applies
the IFRS 9 simplified approach, which uses a lifetime expected loss allow-
ance to be assessed and recognized regularly. Credit loss risk related to cus-
tomer contract assets is covered mainly by the advance payments received
from the clients. These impairment losses are recognized in profit or loss.
If the impairment loss recognized in the allowance account becomes final,
trade receivables are decreased with the amount of the impairment loss and
allowance account is adjusted respectively.
The counterparties of trade receivables do not normally have external
credit rating. The credit quality of these receivables is assessed based on
assessment of the impairment of financial assets based on expected credit
losses and on the payment history of the customers and third party credit
reports.
Also the trade receivables past due are analyzed on company lelvel,
reporting unit level and individually. If the days past due exceed the time
limits set in the Group's credit policy, an impairment loss is recognized of the
trade receivable. The estimate made for doubtful receivables is based on a
review of all trade receivables outstanding on the reporting date as well as
on an assessment of the impairment of financial assets based on expected
credit losses. If the counterparty of a trade receivable is insolvent, the trade
receivable is individually determined to be impaired even though the trade
receivable were not past due. Otherwise the trade receivables not past due
are not determined to be impaired.
Finance lease receivable has been recognized when Glaston has leased
machinery and equipment for production use, which have been treated
as finance leases. The present value of the rental income from the leased
machine, discounted at the market interest rate at the time of sale, is
recorded as sales revenue. The lessor’s leases are subdivided into finance
leases and other leases.
Glaston Annual Review 2022 147
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Estimates and assessments by Management
Measurement of trade and other receivables includes some manage-
ment estimates. If management estimates that the 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 consid-
ered as indications of impairment of the receivable.
Trade and other receivables
EUR thousand 2022 2021
Receivables
Trade receivables 17,768 12,503
Trade receivables, falling due after 12 months
(1
- 3
Total trade receivables 17,768 12,506
Finance leasing receivables 94 90
Finance leasing receivables, falling due after 12 months
(1
373 467
Prepaid expenses and accrued income 2,548 1,407
Prepaid expenses and accrued income,
falling due after
12 months
(1
131 139
Other receivables 3,548 2,959
Other receivables, falling due after 12 months
(1
100 2,325
Current loan receivables - 156
Total receivables 24,563 20,048
(1
In non-current assets
Glaston Annual Review 2022 148
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Prepaid expenses and accrued
income consist mainly of accruals of
financial items, fair values of derivative
instruments, accruals related to sales,
accruals related to insurances and
other accruals.
Prepaid expenses and accrued
income related to derivative instru-
ments are disclosed in more detail in
Note 5.6.
Ageing analysis of trade receivables at 31 December
Past due
Carrying amount of trade receivables after
recognizing allowance account Not past due < 30 days 31-180 days 181-360 days > 360 days
2022 17,768 12,334 3,997 1,279 122 36
2021 12,506 9,322 2,103 840 170 72
Impairment losses of trade receivables and changes in allowance
account of trade receivables
EUR thousand
Allowance account 1 January, 2021 1,354
Exchange difference 156
Charge for the year 801
Utilized -438
Unused amounts reversed -292
Allowance account 31 December, 2021 1,405
Exchange difference 227
Charge for the year 412
Utilized -555
Unused amounts reversed -338
Allowance account 31 December, 2022 1,151
Impairment losses of trade receivables recognized in
prot or loss, net (- income)
2022 -69
2021 698
Glaston Annual Review 2022 149
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
EUR thousand 2022 2021
Minimun lease receivables  Minimun lease receivables 
Finance lease receivables are due
as follows
No later than 1 year 94 17 90 20
Later than 1 year and no later than
5 years 373 34 394 47
Later than 5 years - - 89 4
 467 51 5 74 71
Present value of minimum lease
receivables 489 577
Finance lease receivables
Operating leases as a lessor
Glaston has some other operating lease agreements where the Group acts as
lessor. In Finland and China, premises adjacent to the factory are leased to exter-
nal parties. The minimum payments for these non-cancellable lease agreements
are shown in the table below
2022 2021
Minimum future payments of operating leases
Maturity within one year 911 883
Maturity later than one year and not later than five years 1,348 1,675
Maturity later than five years - 81
Total minimum future payments of operating leases 2,259 2,639
Glaston Annual Review 2022 150
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
4.3. Trade payables and other interest-free liabilities
4.3. Trade payables and other interest-free liabilities
EUR thousand 2022 2021
Trade payables 16,369 15,853
Advances received 39,488 36,334
Accrued expenses and deferred income 15,185 14,622
Other current interest-free liabilities 2,096 2,451
Total current interest-free liabilities 73,137 69,259
Accruals mainly consist of cost accru-
als for machinery deliveries, accrued
personnel expenses, accruals related
to net sales and purchases, accruals
of interests and other accruals.
Current interest-free liabilities
Glaston Annual Review 2022 151
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
4.4. Provisions
4.4. Provisions
Estimates and assessments by Management
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. The management’s estimate of the warranty provi-
sion 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.
Accounting policy
A provision is recognized when as a consequence of some previous
event there has arisen a legal or constructive obligation, and it is proba-
ble 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 provi-
sion 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.
Glaston Annual Review 2022 152
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Carrying amount 1 January 2,164 177 141 2,482
Exchange difference 3 21 2 26
Reclassification 282 -5 - 277
Increase in provisions 3,225 - 43 3,268
Provisions used during the period -1,716 -70 -30 -1,816
Provisions released during the
period -1,028 - -13 -1,042
Carrying amount 31 December 2,930 124 142 3,196
Non-current provisions
EUR thousand
2022
Warranty
provision
Other
provisions Total
Carrying amount 1 January 174 123 297
Reclassification -282 - -282
Increase in provisions 521 11 532
Provisions released during the
period -118 -3 -121
Carrying amount 31 December 296 131 427
2021
Carrying amount 1 January 141 122 263
Reclassification -125 - -125
Increase in provisions 191 1 192
Provisions released during the
period -32 - -32
Carrying amount 31 December 174 123 297
2022
Warranty
provision
Restructuring
provision
Other
provisions Total
Warranty provisions
Glaston grants to its machine deliv-
eries a guarantee period of 1 to 2
years. During the guarantee period
Glaston repairs the defects, if any, of
the machines and carries the costs of
the repairing. The warranty provisions
are expected to be realized within the
next two years.
Current provisions
but is not limited to, estimated provi-
sions for employee benefits related
to personnel whose employment has
been terminated. For some of the
provisions it is not possible to estimate
timing of the outflow of economic
benefits, for example due to the tim-
ing of such outflows are dependent
on the actions of an external party.
Restructuring provisions
Glaston has recorded restructuring
provisions for rationalization measures
by closing production units or reduc-
ing activities at the units. Restructur-
ing provisions only include expenses
that are necessarily entailed by the
restructuring, and which are not asso-
ciated with the on-going activities.
The restructuring provision includes,
Other provisions
Other provisions include, among
other things, litigation provisions and
provisions for costs, for which third
party compensation has not yet been
recognized.
Reclassification refers to a transfer from long-term to short-term.
2021
Carrying amount 1 January 2,602 787 142 3,531
Exchange difference 83 6 10 99
Reclassification 125 - - 125
Increase in provisions 2,288 - 82 2,370
Provisions used during the period -802 -575 -81 -1,458
Provisions released during the
period -2,132 -41 -12 -2,186
Carrying amount 31 December 2,227 177 141 2,482
Glaston Annual Review 2022 153
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
5.1. Management of capital .................................................. 155
5.2. Cash and cash equivalents..........................................156
5.3. Equity ......................................................................................... 157
5.4. Management of financial risks ...................................159
5.5. Financial assets and liabilities by category ........163
5.6. Borrowings and lease liabilities .................................168
5.7. Derivative instruments ...................................................169
5.8. Contingencies ...................................................................... 171
5. Capital structure and financial instruments
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
5.1. Management of capital
5.1. Management of capital
The objective for management of
capital is to secure the continuation of
operations at all times and to maintain
appropriate capital structure. In the
capital management planning pro-
cess, both current and future needs of
the business are taken into consider-
ation together with securing flexibility
and competitive pricing of financing.
The primary measure for the
Group’s capital structure is net
gearing. It is calculated as the ratio
between net interest-bearing debt
to equity. The Group’s equity ratio is
also used as a measure for the capital
structure. It is calculated as the ratio
between equity to the total assets
adjusted with advance payments
received. Additionally, the Group's
liquid funds are monitored regularly.
The Group’s loan agreements
include covenants and other terms
and conditions which are linked to
consolidated key figures. If the cove-
nant terms are not fulfilled, negotia-
tions with the lenders will be initiated.
These negotiations may lead to notice
of termination of financial agree-
ments. The covenants in use are net
interest-bearing debt to equity (net
gearing ratio) and net interest-bear-
ing debt to EBITDA (leverage). Group
treasury is responsible for monitoring
the covenants and reports the situa-
tion regularly to management and the
Board of Directors of Glaston Corpo-
ration. All covenant terms during the
financial year have been met.
EUR thousand 2022 2021
Interest-bearing net debt
Non-current interest-bearing liabilities 29,794 37,287
Current interest-bearing liabilities 5,742 7,834
Cash and cash equivalents -22,224 -26,852
Total 13,312 18,269
Equity
Attributable to owners of the parent 68,437 68,030
Total 68,437 68,030
Total assets 194,892 197,283
Advances received -39,488 -36,334
Total 155,404 -160,949
Equity ratio, % 44.0% 42.3%
Net gearing, % 19.5% 26.9%
The consolidated equity and thus the capital structure is decreased by dividends
and return of capital paid and acquisition of Glaston Corporation's own shares.
The equity can be increased by disposal of own shares and share issues. Equity
is also affected by the result for the reporting period, as well as by changes in fair
value reserve and exchange differences included in equity.
Glaston Annual Review 2022 155
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
5.2. Cash and cash equivalents
5.2. Cash and cash equivalents
EUR thousand 2022 2021
Cash and bank 22,224 26,852
Total cash and cash equivalents 22,224 26,852
Accounting policy
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 over-
drafts are included in current interest-bearing liabilities.
Glaston Annual Review 2022 156
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
5.3. Equity
5.3. Equity
Accounting policy
Other restricted equity reserves
Other restricted equity funds include restricted capital not included in the
share capital of subsidiaries.
Fair value and other reserves
The fair value and other reserve includes changes in the fair values of invest-
ments measured at fair value through other comprehensive income and
changes in the fair value of instruments used in cash flow hedging if the
hedge is effective and meets the criteria of hedge accounting requirements.
The exchange difference
In the consolidated financial statements, statements of profit or loss, state-
ments 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 statements of profit
or loss, statements of comprehensive income and statements of financial
position using the different exchange rates is recognized as other com-
prehensive income and included in retained earnings in equity. 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 dif-
ference.
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.
Dividends and return of capital
Dividends or return of capital 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.
Glaston Annual Review 2022 157
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Share capital and number of shares
Shares and Voting Rights
Glaston Corporation has one class of shares. The number of outstanding shares
is 84,289,911 and each share carries one vote at general meetings of sharehold-
ers. There are no limitations to transfer the shares. Glaston Corporation's share
capital amounted to EUR 12,696,000. The share has no nominal value. The share's
counter book value is EUR 0.15 per share. Glaston’s shares are registered in the
book-entry securities system maintained by Euroclear Finland Ltd.
According to the Articles of Association of Glaston Corporation, a shareholder
whose proportion of all the company’s shares or the votes conferred by the shares
- either alone or together with other shareholders as defined hereinafter - reaches
or exceeds 33 1/3 per cent or 50 per cent is obligated, upon a demand by the
other shareholders, to redeem their shares and the securities entitling their hold-
ers to shares under the Companies Act according to the provisions of this article.
According to the Articles of Association of Glaston Corporation, the redemption
price in respect of shares shall be the higher of the following:
a) the weighted average price of trading in the share during the last ten (10)
trading days on the Nasdaq Helsinki Ltd. before the day when the company
received from the Redeeming Shareholder a notification that the sharehold-
ing or voting rights limit as set forth above had been reached or exceeded or,
should such notification be lacking or fail to be received by the deadline, when
the company’s Board of Directors otherwise received knowledge of it;
b) the average price, weighted by the number of shares, which the Redeeming
Shareholder has paid for the shares which he/she has purchased or other-
wise received during the last twelve (12) months before the day specified in
paragraph a) above.
The redemption obligation set forth in the Articles of Association does not per-
tain to a shareholder who can prove that the shareholding or voting rights limit
entailing a redemption obligation was reached or exceeded before the relevant
provision of these Articles of Association was entered in the Trade Register.
Number of shares and treasury shares 2022 2021
Number of shares (registered)
Number of shares 1 January 84,289,911 84,289,911
Number of shares 31 December 84,289,911 84,289,911
2022 2021
Equity attributable to owners of the
parent, EUR thousand 68,437 68,030
Number of shares 84,289,911 84,289,911
Equity attributable to owners of the parent
per share, EUR 0.81 0.81
2022 2021
Distribution of profit
Return of capital per share, EUR
(1
0.04 0.03
1)
The Board of Directors' proposal to the 2023 Annual General Meeting.
Glaston Annual Review 2022 158
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
5.4. Management of nancial risks
5.4. Management of financial risks
Financial risk management
The main objectives for financial risk
management within Glaston are to
secure operational continuity, sup-
port the achievement of operational
objectives and to implement treasury
functions cost-effectively utilizing the
Group’s economies of scale.
The Group’s treasury functions
have been centralised to the parent,
which is responsible for relations with
financial institutions, long-term financ-
ing arrangements and the investment
of liquid assets as well as the Group’s
internal funding allocations accord-
ing to the liquidity needs of different
group companies. Group Treasury
cooperates with the group compa-
nies to identify the risks and pro-
vides financial services for the group
companies in order to manage these
identified risks.
The management of financial risks
in Glaston Group is conducted in
accordance with the Glaston Group's
Treasury Policy approved by the Board
of Directors of Glaston Corporation.
It is the responsibility of the CFO and
Group Treasury to propose amend-
ments to this policy as conditions
within the Group and on the financial
markets change. Group Treasury
is responsible for monitoring com-
pliance with the Treasury Policy as
well as for presenting the need for
changes to Treasury Policy to the par-
ent’s Board of Directors.
The Group’s financial risks consist
of foreign exchange, interest rate,
credit, counterparty and liquidity risks.
Due to its international operations the
Group is exposed to risks arising from
foreign exchange rate fluctuations.
The effects of interest rate changes
on the Group's annual result create an
interest rate risk. Credit and coun-
terparty risk primarily consists of risk
related to credit granted to custom-
ers. Liquidity risk is defined as the risk
that the Group’s funds and borrowing
facilities become insufficient to meet
the needs of the business or that extra
costs are incurred in order to arrange
the financing needed.
Also investment of liquid funds is
managed in accordance with the
Treasury Policy. Liquid assets are
invested in low risk instruments and
only counterparties that possess
good credit-worthiness are accepted.
Market risks
Foreign exchange risk
The Group operates internationally
and is therefore exposed to transac-
tion and translation risks arising from
fluctuations in foreign exchange rates,
which may have an effect on profit or
loss and financial position. Transaction
risks arise from cash flows generated
by purchase and sales activities while
translation risks arise from converting
items in the statements of profit or
loss and the statements of financial
position of non-euro subsidiaries into
the Group’s reporting currency.
The invoicing currency for a large
proportion of the Group’s deliveries
is the euro, which is also the Group’s
reporting currency. The most signifi-
cant foreign exchange risk arises from
exchange rate fluctuations between
the euro and the US dollar, but the
Group may also have significant
exposures in Chinese Yuan, English
Pound and Swiss Franc. The US dollar
accounted for approximately 22 per
cent of the net sales in 2022 (23 per
cent). The Euro and US dollar together
accounted for approximately 82 per
cent of the invoicing in 2022 (83 per
cent).
The Group did not have foreign
currency denominated loans. The
Group's internal loans are either short-
term working capital credit facilities
or subordinated long-term loans
denominated on a case-by-case basis
either in the local currency of the
foreign subsidiary or in the reporting
currency of the Group.
The objective for foreign exchange
risk management is primarily to
secure the planned result of group
companies from unexpected cur-
rency fluctuations. Possible hedging
Glaston Annual Review 2022 159
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
of foreign exchange risk is conducted
in accordance with the Treasury
Policy and the group companies are
responsible for reporting their respec-
tive foreign currency items. In 2022,
large orders in USD and the percent-
age of the most probable 18-month
orders defined in Treasury Policy were
hedged by currency forward con-
tracts. Cash flow hedging was based
on IFRS 9 hedge accounting in 2022.
Cash flow hedging is presented in
Change in currency rate,
Gross position
Change in currency rate,
Net position impact on the
income statement
EUR thousand Gross position
Currency
Forwards
nominal value Net position
- 10
per cent
+ 10
per cent
- 10
per cent
+ 10
per cent
note 5.8. The Group has not hedged
net investments in foreign entities nor
internal loans.
For the sensitivity analysis as
defined in IFRS 7, a possible +/- 10 per
cent change in the main currencies
was assessed, with all other factors
remaining unchanged. The sensitiv-
ity analysis is based on the foreign
currency denominated assets and
liabilities as of 31 December 2022. The
analysis takes into consideration the
impact of foreign exchange deriva-
tives, if such instruments have been
used, which offsets the effects of
changes in foreign exchange rates.
In the table below, the effect of
the main currencies on consolidated
result before taxes has been analysed.
Only risks that are related to finan-
cial instruments are included in the
analysis.
Interest rate risk
Possible changes in the interest rates
cause a risk that will affect the result
of the Group. The objective of interest
risk management is to minimize, if
necessary, the effect of interest rate
fluctuations on the Group’s annual
result.
As a measurement for the man-
agement of interest rate risk has
been used an effect of the 1 percent
changed of interest rates to interest
expences for the period of 12 months.
At the end of 2022 this effect was EUR
160 thousand (EUR 159 thousand).
On 31 December 2022, the Group’s
interest-bearing net debt mainly con-
sisted of loans agreed with lenders
in the financing agreement signed
in 2022. In April 2022, Glaston entered
into a 3-year interest rate swap with
a nominal value of EUR 12 million to
hedge a variable rate loan, which is
subject to hedge accounting.
For the sensitivity analysis as defined
by IFRS 7, a possible +1 / -0.5 per-
centage point change in the interest
rates was assessed. The effect of the
change on the Group’s result before
taxes given the level of debt with
floating interest rates on 31 December
2022 is EUR -0.16 / +0.08 (-0.16 / +0.18)
million and the effect to Group's equity
is EUR +0.33 / -0.17 million.
USD/EUR -24,979 18,294 -6,685 -2,775 2,271 -743 608
CHF/EUR -558 - -558 -62 51 -62 51
CNY/EUR -7,981 - -7,981 -887 726 -887 726
GBP/EUR 411 442 -31 46 -37 -3 3
-33,107 18,736 -15,255
Glaston Annual Review 2022 160
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Credit and counterparty risk
The Group becomes exposed to
credit and counterparty risks when it
grants payment time to the custom-
ers. The credit worthiness of these
counterparties may decrease and
affect the Group’s result. Credit risk
management is conducted in accord-
ance with the Group’s Credit Manage-
ment Policy.
The objective for credit risk man-
agement is to reduce this risk as much
as possible without compromising the
flexibility needed by different business
areas. Risk management is performed
together with the business manage-
ment with the objective to avoid major
credit risk concentrations and to
verify, that sufficient guarantees and
collaterals are received. The Group
reduces its credit risk by using letters
of credit and various types of guar-
antees received from the customers
to secure the receivables. In addition,
the Group uses advance payments
to reduce risk and to accelerate fund
inflows. Glaston is closely monitoring
and managing its liquidity and financial
position. Credit risks are mitigated
through stringent customer pay-
ment terms with significant customer
advances. Orders are only registered
in the order book upon receipt of
a customer advance. In measur-
ing expected credit losses, Glaston
applies the IFRS 9 simplified approach,
which uses a lifetime expected loss
allowance from trade receivables to
be assessed and recognized regularly.
At the end of 2022, 5.0 (19.6) per
cent of Group’s trade receivables
were secured by LCs.
The Group’s client base is diversi-
fied over several different geograph-
ical areas and customer segments,
which reduces major concentrations
of credit risk. The largest single cus-
tomer’s share of the Group’s receiv-
ables is not significant in terms of risk
management. Significant unfavour-
able changes in the level of invest-
ment demand might, however, cause
changes in the development of the
Group’s credit risk.
The Group’s liquid funds are
invested to mitigate risk and only
counterparties with high credit rating
are accepted. The investment port-
folio consist mainly of money market
deposits or commercial papers.
Trade receivables
The quality of trade receivables is
assessed by each group company
based on the Group’s Credit Manage-
ment Policy. Based on these assess-
ments, impairment losses on trade
receivables are recognized in accord-
ance with the Credit Policy.
The total carrying amount of trade
receivables on 31 December 2022 was
EUR 17.8 million (EUR 12.5 million).
Ageing analysis and changes in
allowance account of trade receiva-
bles are presented in Note 4.2. to the
consolidated financial statements.
Liquidity risk
Liquidity risk is defined as the risk that
the Group’s funds and borrowing
facilities become insufficient to meet
the business needs or that significant
extra costs are incurred in order to
arrange the financing needed.
Liquidity risk is managed through
effective use of advance payments in
order to reduce the amount of work-
ing capital tied up in the operations.
A special focus is set on the working
capital management and the devel-
opment is monitored regularly. Short-
and long-term cash planning is part of
group companies’ operational activity
together with the Group Treasury. As a
measurement for the liquidity risk are
the Group's liquid funds and unused
credit facilities. Group Treasury
reports the Group’s liquidity position
regularly to the management and
to the Board of Directors of Glaston
Corporation
Glaston Corporation signed a new
long-term financing agreement in
March 2022. The financing agreement
consists of EUR 30 million long-term
loans as well as a EUR 25 million revolv-
ing credit facility. The agreement is for
three years and includes two one-
year options for extension of the loan
period. The loan margin of the new
financing agreement is adjusted by
the achievement of Glaston's sustain-
ability objectives annually. The objec-
tives are Safety at work (decrease of
lost time accidents, measured as lost
time injury frequency rate LTIFR) and
CO
2
emissions (Scope 1 & 2) in relation
to net sales. The covenant terms of
the financing package are described
in the note 5.1. Management of capital.
Glaston Annual Review 2022 161
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Committed credit facilities
EUR million In use Unused Total
Committed credit facilities 31.12.2022 2.0 23.0 25.0
Committed credit facilities 31.12.2021 8.1 26.9 35.0
Maturity analysis of nancial liabilities 31 December 2022
EUR thousand Maturing in
 Carrying amount  < 12 months 1-2 years > 2 years
Financial liabilities
Interest bearing loans 27,774 30,025 4,909 4,777 20,339
Other interest-bearing loans 196 206 41 41 123
Lease liabilities 7,566 7,566 1,703 1,774 4,089
Trade payables 16,369 16,369 16,369 - -
Total 51,905 54,166 23,022 6,592 24,551
Maturity analysis of nancial liabilities 31 December 2021
EUR thousand Maturing in
 Carrying amount  < 12 months 1-2 years > 2 years
Financial liabilities
Interest bearing loans 34,405 38,644 7,257 31,388 -
Other interest-bearing loans 2,159 2,210 2,210 - -
Lease liabilities 8,557 10,413 1,675 1,964 4,918
Trade payables 15,853 15,853 15,853 - -
Total 60,974 67,120 26,995 33,352 4 918
Glaston Annual Review 2022 162
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
5.5. Financial assets and liabilities by category
5.5. Financial assets and liabilities by category
Accounting policy
Glaston’s financial assets have been classified into three categories: as assets
recognized at amortized cost, at fair value through other comprehensive
income and at fair value through profit or loss. The classification depends on
the business model under which the financial assets are managed as well
as the characteristics of the instrument’s cash flows. A financial asset item
is derecognized from the statement of financial position when Glaston’s
contractual right to the cash flows from the financial asset item expire or the
financial asset item is transferred to an external party and the transfer fulfills
the asset derecognition requirements of IFRS 9.
Financial liabilities are classified at amortized cost using the effective inter-
est method, or at fair value through profit or loss. A financial liability or part of
a financial liability is derecognized from the statement of financial position
when the liability has ceased to exist, i.e. when the obligation specified in the
contract has been discharged or canceled or has expired.
Glaston’s long term financial assets have been classified into assets rec-
ognized at fair value through other comprehensive income. The classification
depends on the business model under which the financial assets are man-
aged as well as the characteristics of the instrument’s cash flows. A financial
asset item is derecognized from the statement of financial position when
Glaston’s contractual right to the cash flows from the financial asset item
expire or the financial asset item is transferred to an external party and the
transfer fulfills the asset derecognition requirements of IFRS 9.

Hedge Accounting
Derivative contracts are entered in the statement of financial position at the
time of acquisition at fair value and remeasured at fair value in the finan-
cial statements using the market prices at the end of the reporting period.
Entries of the changes of derivatives are influenced by whether a derivative
contract falls within the scope of hedge accounting. Derivatives that do
not meet the hedge accounting conditions are financial assets and liabili-
ties acquired for trading and entered at fair value through profit or loss, and
whose changes of value are recognized immediately through profit or loss.
When a hedging arrangement is entered into, the relationship between
the item being hedged and the hedging instrument, as well as the objec-
tives of the Group’s risk management are documented. The IFRS 9 standard
requires an economic relationship between the hedged item and the hedg-
ing instrument as well as the same hedge ratio that management actually
uses in risk management.
If the hedging accounting conditions are met, cash flow hedge account-
ing under IAS 9 is applied with respect to foreign exchange derivatives. If the
hedge accounting conditions are not met, the result of hedging instruments
when hedging a commercial foreign exchange risk are recognized in profit or
loss within other operating income or expenses.
Glaston Annual Review 2022 163
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Derivative instruments are included in the statement of financial position
in current assets and liabilities. Trade date accounting is used in recognizing
sales and purchases of derivatives.
Hedge accounting was used in hedging the trade receivables of projects
and in hedging a variable rate loan. In April 2022, Glaston entered into a 3-year
interest rate swap with a nominal value of EUR 12 million to hedge a varia-
ble rate loan, which is subject to hedge accounting. At the end of reporting
period 2022, Glaston had open foreign exchange and interest rate forward
contracts.

Other assets recognized at fair value through profit or loss may include
current investments that are acquired and held for trading, i.e. acquired or
incurred for the main purpose of selling them in the short term. Other assets
recognized at fair value through profit or loss are included in current assets in
the statement of financial position.
Fair values of other financial assets recognized at fair value through profit
or loss are estimated to correspond to their carrying amounts because of
their short maturities. Trade date accounting is used in recognizing pur-
chases and sales of other assets recognized at fair value through profit or
loss.
Loans and Other Receivables
Loans and other receivables are assets which are not included in derivative
assets. Loans and other 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.
Loan receivables, trade receivables and other receivables have been
classified as loans and other receivables. 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. The estimate made for doubtful receivables is based on
a review of all trade receivables outstanding on the reporting date as
well as on an assessment of the impairment of financial assets based
on expected credit losses. 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 derecog-
nized 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. The estimate made for doubtful receiv-
ables is based on a separate review of all loan receivables outstanding
on the reporting date as well as on an assessment of the impairment of
financial assets based on expected credit losses. 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.
Glaston Annual Review 2022 164
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Financial Assets Valued at Fair Value through other comprehensive income
Financial assets measured at fair value through other comprehensive
income are financial assets not included in derivative assets, assets or lia-
bilities recognized at fair value through profit or loss, or other receivables.
Listed investments included in financial assets measured at fair value
through other comprehensive income are valued at the market price
at the end of the reporting period. The value of investments whose fair
value is not based on verifiable market data, such as unlisted shares and
other investments, is based on information obtained from the company
or on the fair value of substantially similar instruments.
Unrealized changes in the fair value of financial assets measured at
fair value through other comprehensive income are recognized in other
comprehensive income less tax effects and are included in the fair value
reserve in equity.
Financial assets at fair value through other comprehensive income are
included in non-current assets in the statement of financial position.
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 pension loans, loans from
financial institutions, finance lease liabilities, trade payables and advances
received. They are included in current or non-current liabilities in accord-
ance 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 capital-
ized to the acquisition cost of the asset. The capitalization applies mainly
to property, plant and equipment and intangible assets.
Glaston Annual Review 2022 165
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Cash 5.2. - - 22,224 22,224 -
Trade receivables 4.2. - - 17,768 17,768 -
Other interest-free receivables 4.2. - - 4,635 4,635 -
Other non-current interest-free
receivables 4.2. - - 100 100 -
Derivatives (receivables) 5.7. 1,087 - - 1,087 -
Shares and oher long-term
investments 7 - - 7 -
Non-current interest-bearing liabilities 5.6. - - -29,794 -29,794 -27,852
Current interest-bearing liabilities 5.6. - - -5,742 -5,742 -5,872
Trade payables 4.3. - - -16,369 -16,369 -
Other current interest-free liabilities 4.3. - - -2,096 -2,096 -
Derivatives (liabilities) 5.7. -395 - - -395 -
Total 699 - -9,274 -8,574 -33,724
EUR thousand
31 December, 2022 Note
Financial assets and
liabilities measured
at fair value through
other comprehensive
income
Financial assets
and liabilities at
fair value through

Financial liabilities at
amortized cost
Total carrying
amounts Total fair value
Financial assets and liabilities by category
31 December, 2021
Cash 5.2. - - 26,852 26,852 -
Trade receivables 4.2. - - 12,506 12,506 -
Other interest-free receivables 4.2. - - 3,183 3,183 -
Current loan receivables 4.2. - - 156 156 -
Other non-current interest-free
receivables 4.2. - - 2,325 2,325 -
Derivatives (receivables) 5.7. 224 - - 224 -
Shares and oher long-term investments 7 - - 7 -
Non-current interest-bearing liabilities 5.6. - - -37,287 -37,287 -36,384
Current interest-bearing liabilities 5.6. - - -7,834 -7,834 -7,986
Trade payables 4.3. - - -15,853 -15,853 -
Other current interest-free liabilities 4.3. - - -1,788 -1,788 -
Derivatives (liabilities) 5.7. -663 - - -663 -
Total -432 - -17,740 -18,172 -44,370
Glaston Annual Review 2022 166
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2022 2021
1 January - 2,842
Impairment losses
(1
- -2,842
31 December - -
(1
Glaston wrote off balance sheet items related to the Heliotrope partnership,
Fair value measurement hierarchy, Level 3, changes during the reporting period
31.12.2022 31.12.2021
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets
Currency forward contracts - 1,087 - 1,087 - 224 - 2 24
Total - 1,087 - 1,087 - 224 - 224
Liabilities
Finacial liabilities - -33,724 - -33,724 - -44,370 - -44,370
Currency forward contracts - -395 - -395 - -663 - -663
Total - -34,119 - -34,119 - -45,033 - -45,033
Fair value measurement hierarchy:
Level 1 = quoted prices in active markets
Level 2 = other than quoted prices included within Level 1 that are observable either directly or indirectly
Level 3 = not based on observable market data
Specific valuation techniques used to value financial instruments include:
• The fair value of forward foreign exchange contracts is determined by using forward rates at the closing date
• The use of quoted market prices or dealer quotes for similar instruments
Glaston Annual Review 2022 167
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Non-current
interest-bearing
liabilities 37,287 -1,743 93 -5,843 29,794
Current interest-
bearing liabilities 7,834 -7,935 - 5,843 5,742
Total 45,121 -9,678 93 - 35,536
5.6. Borrowings and lease liabilities
5.6. Borrowings and lease liabilities
EUR thousand 2022 2021
Loans from financial institutions 23,931 30,405
Lease liablities 5,863 6,882
Total non-current interest-bearing liabilities 29,794 37,287
1-2 years 2-3 years 3-5 years > 5 years Total
Loans from financial
institutions 4,000 19,774 157 - 23,931
Lease liablities 1,869 1,264 2,428 302 5,863
Total 5,869 21,038 2,585 302 29,794
Loans from financial institutions 4,039 6,159
Lease liabilities 1,703 1,675
Total current interest-bearing liabilities 5,742 7,834
Non-current interest-bearing liabilities 29,794 37,287
Current interest-bearing liabilities 5,742 7,834
Cash -22,224 -26,852
Total 13,312 18,269
Non-current interest-bearing liabilities
Maturity of long term interest bearing liabilities
Current interest-bearing liabilities
Interest-bearing net liabilities
The Group’s funding is mainly organ-
ized by using the Facilitites Agreement
signed in March 2022. All Group loans
from financial institutions are denomi-
nated in euros.
Group’s loan agreements include
covenants and other terms and
conditions which are linked to con-
1.1.2022 
Effective
rate and
Exchange
differences

cation 31.12.2022
*Cash flow includes the changes of leasing agreements
solidated key figures. If the covenant
terms are not fulfilled, negotiations
with the lenders will be initiated. These
negotiations may lead to notice of
termination of financial agreements.
Covenant terms are described in
more detail in Note 5.1.
The liquidity and currency risk
related to interest-bearing debt is
described in more detail in Note 5.4.
Glaston Annual Review 2022 168
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
5.7. Derivative instruments
5.7. Derivative instruments
Accounting policy
Derivative contracts are entered in the statement of financial position at the
time of acquisition at fair value and remeasured at fair value in the finan-
cial statements using the market prices at the end of the reporting period.
Entries of the changes of derivatives are influenced by whether a derivative
contract falls within the scope of hedge accounting. Derivatives that do
not meet the hedge accounting conditions are financial assets and liabili-
ties acquired for trading and entered at fair value through profit or loss, and
whose changes of value are recognized immediately through profit or loss.
When a hedging arrangement is entered into, the relationship between
the item being hedged and the hedging instrument, as well as the objec-
tives of the Group’s risk management are documented. The IFRS 9 standard
requires an economic relationship between the hedged item and the hedg-
ing instrument as well as the same hedge ratio that management actually
uses in risk management.
If the hedging accounting conditions are met, cash flow hedge account-
ing under IAS 9 is applied with respect to derivatives. If the hedge accounting
conditions are not met, the result of hedging instruments are recognized in
profit or loss within other operating income or expenses.
Derivative instruments are included in the statement of financial position
in current assets and liabilities. Trade date accounting is used in recognizing
sales and purchases of derivatives.
Derivative instruments are used only for currency and interest rate hedg-
ing purposes. Nominal values of derivative instruments do not necessarily
correspond with the actual cash flows between the counterparties and do
not therefore give a fair view of the risk position of the Group. The fair values
are based on market valuation on the date of reporting.
Glaston Annual Review 2022 169
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
In reporting periods 2022 and 2021,
hedge accounting was used in hedg-
ing the trade receivables of projects.
In April 2022, Glaston entered into a
3-year interest rate swap with a nom-
inal value of EUR 12 million to hedge
a variable rate loan, which is subject
to hedge accounting. At the end of
reporting periods 2022 and 2021,
Glaston had open foreign exchange
forward contracts.
EUR thousand 2022 2021
Derivative instruments in the income statement
Items included in net sales -1,457 -574
Financial items -6 -2
Derivative instruments in the statement of nancial
position, receivables and liabilities
Accrued expenses and deferred income
Currency and interest rate forwards 395 663
Accrued income
Currency and interest rate forwards 1,087 2 24
Nominal and fair values of derivative instruments
2022 2021
EUR thousand Nominal value Fair value Nominal value Fair value
Currency forwards 18,736 102 19,195 -341
Interest rate forwards 12,000 578 - -
Glaston Annual Review 2022 170
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
5.8. Currency forwards
5.8. Contingencies
EUR thousand 2022 2021
Loans secured with mortgages or pledges
Loans from financial institutions 28,000 35,000
Liens on chattel 292,500 487,500
Carrying amount of pledged securities 21,590 25,982
Total mortgages, liens on chattel and pledged assets 314,090 513,482
Contingent liabilities
Liens on chattel
On behalf of own commitments 292,500 487,500
Securities pledged
On behalf of own commitments 21,590 25,982
Total 314,090 513,482
Liens on chattel are related to companies: Glaston Services Ltd. Oy, Glaston Fin-
land Oy, Companies are jointly responsible for the debts of Glaston Group.
Guarantees
On behalf of own commitments 15,308 8,504
On behalf of others 261 168
Total 15,569 8,671
Total contingent liabilities 329,659 522,153
Other contingent liabilities and litigations
At year end, Glaston Tianjin Co. Ltd. has endorsed EUR 0.3 million of bank drafts.
The expiring dates of the bank drafts are in the first half of year 2023.
Glaston Group can be a defendant or plaintiff in a number of legal proceed-
ings incidental to those operations. The Group does not expect the outcome of
any unmentioned legal proceedings currently pending, either individually or in
the aggregate, to have material adverse effect upon the Group's consolidated
financial position or result.
Glaston Annual Review 2022 171
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
6.1. Shares and holdings ......................................................... 173
6. Group stucture
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Group companies Group holding % Parent holding %
Glaston Oyj Abp Helsinki Finland
Uniglass Engineering Oy Tampere Finland 100% 100%
Glaston Services Ltd. Oy Tampere Finland 100% 100%
Glaston Finland Oy Tampere Finland 100%
Glaston International Oy Tampere Finland 100%
Glaston America, Inc. Mount Laurel, NJ United States 100%
Glaston UK Ltd. Shropshire United Kingdom 100%
Glaston France S.A.R.L. Paris France 100%
Glaston Singapore Pte. Ltd. Singapore Singapore 100%
Glaston Tianjin Co. Ltd. Tianjin China 100%
Glaston Management (Shanghai) Co. Ltd. Shanghai China 100%
Glaston China Co. Ltd. Tianjin China 100%
Glaston Brasil Ltda São Paulo Brasil 100%
Glaston Hong Kong Ltd. Hong Kong China 100%
Glaston Germany GmbH * Neuhausen-Hamberg Germany 100%
Bystronic Glass Machinery (Shanghai) Co. Ltd. Shanghai China 100%
Glaston Switzerland AG Bützberg Switzerland 100%
Bystronic Glass UK Ltd. Shropshire United Kingdom 100%
Changes in subsidiaries in 2022
• Glaston Emerging Technologies Oy
was merged to Glaston Services Ltd
Oy in July 2022
• OOO Bystronic Steklo was liqui-
dated in July 2022
• LLC Glaston's shares were sold in
July 2022
6.1. Shares and holdings
6.1. Shares and holdings
Changes in subsidiaries in 2021
• Bystronic Glass Inc. was merged to
Glaston America Inc. in January 2021
• Bystronic Glass (Shanghai) Co. Ltd.
was merged to Glaston Tianjin Co.
Ltd. in June 2021
*Pursuant to Sec. 291 German Commercial Code, all EU subsidiaries included in these consolidated
financial statements are exempt from the duty to prepare their own consolidated financial state-
ments and group management report for the subgroups in question.
For the following German corporations, the exempting provision pursuant to Sec. 264 (3) German
Commercial Code applies in addition: Glaston Germany GmbH.
Glaston Annual Review 2022 173
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
7.1. Related parties .................................................................... 175
7.2. Events after end of the reporting period ........... 178
7. Other notes
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
7.1. Related parties
7.1. Related parties
Parties are considered to be related
parties if a party is able to exercise
control over the other or substan-
tially influence its decision-making
concerning its finances and business
operations.
Glaston Group's related parties
include the parent of the Group (Glas-
ton Corporation), subsidiaries.
Also the shareholders, which
have significant influence in Glaston
through shareholding, are consid-
ered to be related parties, as well as
the companies controlled by these
shareholders.
Related parties also include the
members of the Board of Directors,
the Group's Executive Management
Group, the CEO and their family
members as well as the companies
controlled by them.
Glaston follows the same com-
mercial terms in transactions with
associates and other related parties
as with third parties.
Total accrual based remuneration
of the Board of Directors and the
Executive Management Group was
EUR 2,950 (2,851) thousand.
Remuneration of the Executive Management Group, accrual based
EUR 2022 2021
CEO
Salaries 323,707 341,280
Bonuses 191,079 228,826
Share based benefit - 126,500
Total 514,786 696,606
Fringe benefits 13,888 14,164
Total 528,674 710,770
Statutory pension payments (Finnish TyEL or similar plan) 144,073 124,521
Voluntary pension payments 37,303 38,880
Total other Executive Management Group
Salaries 1,454,942 1,274,287
Bonuses 386,170 426,775
Share based benefit 19,879 31,680
Total 1,860,991 1,732,742
Fringe benefits 214,718 53,572
Total 2,075,709 1,786,314
Statutory pension payments (Finnish TyEL or similar plan) 302,202 197,941
Voluntary pension payments 40,096 37,659
Glaston Annual Review 2022 175
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
The remuneration of the Executive
Management Group includes salaries
only for the period of membership.
The CEO's period of notice is 3
months. In the event the company
would give notice to the CEO, he will
receive an additional remuneration
equaling 12 months' salary.
Compensation of the CEO and
other members of the Executive Man-
agement Group consists of a fixed
monthly salary, an annual bonus and a
share-based incentive plan intended
as a long-term incentive (described
in more detail in Note 2.6.). The criteria
for bonus payments are consolidated
result, result of the business area or
business unit as well as functional tar-
gets. The maximum annual bonus of
the CEO is 80 per cent of the annual
salary. The maximum annual bonus of
the other members of the Executive
Management Group is 40 per cent of
the annual salary.
The retirement age of the CEO of
Glaston Corporation and other mem-
bers of the Executive Management
Group is according to the normal local
legislation, ie. 63-68 years.
Remuneration of the Board of Directors, accrual based
2022 2021
EUR annual fee meeting fee total annual fee meeting fee total
Veli-Matti Reinikkala, Chair of the Board
of Directors 67,500 15,900 83,400 60,000 15,400 75,400
Sebastian Bondestam, Deputy Chair of
the Board of Directors 49,750 6,750 56,500 47,500 8,000 55,500
Sarlotta Narjus 32,250 6,750 39,000 30,000 8,000 38,000
Antti Kaunonen 32,250 6,250 38,500 30,000 8,000 38,000
Arja Talma 42,250 6,750 49,000 30,000 6,000 36,000
Tero Telaranta 32,250 7,250 39,500 30,000 7,500 37,500
Michael Willome 32,250 7,750 40,000 30,000 8,000 38,000
Teuvo Salminen
(1
- - - 17,500 1,800 19,300
Kai Mäenpää
(2
- - - 15,000 1,000 16,000
Total 288,500 57,400 345,900 290,000 63,700 353,700
The members of Glaston Corpora-
tion's Board of Directors were paid an
annual remuneration and a meeting
fee; other compensation was not
paid. The Chair of Glaston Corpo-
ration's Board of Directors was paid
EUR 70,000 (60,000) annually, the
Deputy Chair EUR 43,000 (40,000)
annually and each of the members
EUR 33,000 (30,000) annually. In
addition, a meeting fee of EUR 800
(800) per meeting held in the Chair's
home country and EUR 1,500 per
meeting held elsewhere were paid
to the Chair. The other members of
Glaston Corporation's Board of Direc-
tors were paid EUR 500 per meeting
held in the Board member's home
country and EUR 1,000 per meet-
ing held elsewhere. For the Board
Meeting, which is hold per capsulam,
will be paid half of the regular fee. A
member of the Board may, at his/
her discretion, choose to receive the
annual fixed remuneration partly in
company shares and partly in cash so
that approximately 40% of the annual
fixed remuneration is paid in Glaston
Corporation’s shares.
The members of Glaston Corpora-
tion's Committees are paid for every
meeting, that the member has par-
ticipated, EUR 500 per meeting held
in the Board member's home coun-
try and EUR 1,000 per meeting held
elsewhere. In addition, the Chair of the
Audit Committee was paid an annual
fee of EUR 10,000 and to the Chair of
the People and Remuneration Com-
mittee an annual fee of EUR 7,500.
Glaston Annual Review 2022 176
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Glaston shares
31.12.2022 31.12.2021
Veli-Matti Reinikkala, Chair of the Board
of Directors 720,558 500,000
Sebastian Bondestam, Deputy Chair of
the Board of Directors 51,255 35,137
Sarlotta Narjus - -
Antti Kaunonen 148,718 86,349
Arja Talma 22,713 10,344
Tero Telaranta 23,089 10,720
Michael Willome - -
Board of Directors, share ownership
Share ownership includes also the ownership of Glaston Corporation shares
by the related parties of the person in question and entities controlled by the
person in question.
Glaston shares
31.12.2022 31.12.2021
Anders Dahlblom, CEO 530,000 420,000
Sasu Koivumäki 89,979 89,979
Miika Äppelqvist 6,815 6,815
Päivi Lindqvist 38,680 38,680
Artturi Mäki 4,731 4,731
Robert Prange 40,000 30,000
Taina Tirkkonen 27,500 27,500
Hannele Anonen - -
Dietmar Walz - -
(1
Member of the Board of Directors until 13.4.2021
(2
Member of the Board of Directors until 13.4.2021
Executive Management Group, share ownership
Glaston Annual Review 2022 177
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
7.2. Events after end of the reporting period
7.2. Events after end of the reporting period
There have been no significant events
after end of the reporting period.
Glaston Annual Review 2022 178
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Income statement of the parent company (FAS)

1.1.–31.12.
EUR thousand Note 2022 2021
Net sales 2 4,041 4,098
Other operating income 3 5,271 5,083
Personnel expenses 4 -3,303 -2,801
Depreciation, amortization and impairment losses 5 -365 -460
Other operating expenses 6 -7,179 -10,543
 -1,535 -4,624
Net financial items 7 -237 -716
 -1,772 -5,340
Appropriations 8 -4 -2
Income taxes 9 - 300
 -1,775 -5,042
Glaston Annual Review 2022 179
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Balance sheet of the parent company (FAS)
31.12.
EUR thousand Note 2022 2021
Assets
Non-current assets
Intangible assets 10 1,903 1,277
Tangible assets 10 16 22
Subordinated loan receivable Group Companies 11,12 36,846 36,846
Investments 11,12 17,211 17,211
Non-current assets, total 55,977 55,356
Current assets
Non-current receivables 13 78,000 78,000
Current receivables 13 13,027 12,421
Cash and bank 13,322 20,895
Current assets, total 104,349 111,316
Total assets 160,326 166,673
31.12.
EUR thousand Note
2022 2021
Equity and liabilities
Equity
Share capital 12,696 12,696
Hedging reserve 463 -
Reserve for invested unrestricted equity 110,056 112,584
Retained earnings -47,165 -42,123
Profit / loss for the financial year -1,775 -5,042
Total equity 14 74,274 78,115
Accumulated appropriations 15 103 100
Liabilities
Non-current liabilities 16 24,000 31,006
Current liabilities 17 61,949 57,453
Total liabilities 85,949 88,458
Total equity and liabilities 160,326 166,673

Glaston Annual Review 2022 180
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Parent company cash flow statement (FAS)
EUR thousand 2022 2021

Profit / loss for the financial period -1,775 -5,042
Adjustments:
Income taxes for the period - -300
Deferred taxes 4 2
Financial income and expenses 237 716
Depreciation, amortization and impairment 365 460
Proceeds from disposal of tangible and
intangible assets -17 51
Other adjustments -14 -2,817
Cash flow before change in net working capital -1,202 -6,929
Change in net working capital
Change in current interest-free receivables
Change in current interest-free liabilities
-860 5,306
-146 19,558
Cash flow from operating activities before financial items
and taxes -2,208 17,935
Interests paid and payments made for other financial
items and income taxes
Interests and other financial expenses paid
Interest received
-1,694 -2,317
1,456 2,716
Cash flow from operating activities before
extraordinary items -2,445 18,334
 -2,445 18,334
EUR thousand 2022 2021

Investments in tangible and intangible assets -968 -254
 -968 -254

Drawn-down of non-current loans 24,000 -
Repayments in non-current loans -31,000 -7,500
Change in current intra-group receivables 5,369 994
Drawn-down of current loans 4,000 -
Repayments of current loans -4,000 -4,121
Return of capital -2,529 -1,686
 -4,159 -12,313
Change in cash and cash equivalents -7,572 5,767
Cash and cash equivalents at the beginning of the period 20,895 15,127
Cash and cash equivalents at the end of the period 13,322 20,895
Change in cash and cash equivalents -7,572 5,767
24,000

Glaston Annual Review 2022 181
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
1. Summary of significant
accounting policies
Note 1
Glaston Corporation is a public limited
liability company organized under
the laws of the Republic of Finland.
Glaston’s shares are publicly traded in
the Nasdaq Helsinki Ltd. Small Cap in
Helsinki, Finland. Glaston Corporation
is domiciled in Helsinki, Finland and
its registered office is Lönnrotinkatu
11, 00120 Helsinki, Finland. Glaston
Corporation is the parent of Glaston
Group.
The financial statements of Glaston
Corporation are prepared in accord-
ance with Finnish Accounting Stand-
ards (FAS). The consolidated financial
statements of Glaston Group are
prepared in accordance with Inter-
national Financial Reporting Stand-
ards (IFRS), and Glaston Corporation
applies in its separate financial state-
ments the same accounting principles
as Glaston Group to the extent it is
possible within the framework of Finn-
ish accounting practice. The account-
ing principles of Glaston Group are
presented in the Notes to the Consoli-
dated Financial Statements (Note 1).
The main differences in the
accounting principles between Glas-
ton Corporation's separate financial
statements and Glaston Group’s
consolidated financial statement are
presented in the following texts.
Fixed assets
Contrary to IAS38, intangible assets
in the parent company's financial
statements also include investments
acquired as cloud services that meet
the definition of an intangible asset.
Share-based incentive plans
At the end of the incentive period, the
share-based incentive plans paid in
cash have been recognized in the par-
ent company's financial statements
as personnel expenses and accrued
liabilities.
Financial Assets and Liabilities and
Derivative Instruments
Financial assets and liabilities with the
exception of derivative instruments
are recorded at cost or at cost less
impairment losses. Fair value changes
of derivatives are recognized in finan-
cial items. Valuation methods of deriv-
atives are presented in the accounting
policies of Glaston Group.
Finance Leasing
Lease payments are recognized as
lease expenses. Leasing obligations
are presented as contingent liabilities.
Appropriations
Untaxed reserves consist of a depre-
ciation difference. This difference
between scheduled depreciation and
amortization and the depreciation and
amortization deducted in arriving to
taxable profit is presented as a sepa-
rate item in the income statement and
in the balance sheet. Group contri-
butions received from and given to
subsidiaries are presented as appro-
priations.
Glaston Annual Review 2022 182
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
2. Net Sales
Note 2
EUR thousand 2022 2021
Net sales by business
Manufacturing industry 4,041 4,098
Net sales by country by destination
Finland 534 465
Other EMEA 2,812 2,971
Americas 559 634
Asia 136 28
Total 4,041 4,098
EMEA = Europe, the Middle East and Africa
Americas = North, Central and South America
Asia = China and the rest of the Asia-Pacific area
Note 3
3. Other Operating Income
EUR thousand 2022 2021
Charges from group companies 5,271 5,083
Other operating income, total 5,271 5,083
4. Personnel Expenses
Note 4
EUR thousand 2022 2021
Salaries and fees -2,679 -2,367
Pension expenses -545 -377
Other personnel expenses -78 -58
Total -3,303 -2,801
Salaries and remuneration paid to members of the
Board of Directors and Managing Director 875 1,064
Employees during financial year, average
White collar 18 13
Total 18 13
Note 5
5. Depreciation, Amortization
and Impairment Losses
EUR thousand 2022 2021
Depreciation and amortization according to plan
Intangible assets
Intangible rights -228 -314
Other capitalized expenditure -131 -138
Tangible assets
Machinery and equipment -6 -8
Total depreciation and amortization according to plan -365 -460
Glaston Annual Review 2022 183
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
6. Other Operating
Expenses
Note 6
EUR thousand 2022 2021
Rents -195 -198
Information and communications technology expenses -5,214 -5,107
Travel expenses -97 -37
Losses on disposals of assets -5 -
Intra-group credit loss - -2,839
Other expenses -1,668 -2,363
Other operating expenses, total -7,179 -10,543
Fees paid to auditors
Audit -61 -57
Statutory statements -7 -
Other services -12 -4
Total -80 -61
EUR thousand 2022 2021

From group companies 1,395 1,432
From external parties 145 91
 1,541 1,522
 1,541 1,522

To group companies -402 -415
To external parties -1,375 -1,823
 -1,777 -2,239
 -237 -716
Other financial income and expenses include foreign
exchange gains and losses (net) 19 73
7. Net Financial Items
Note 7
Glaston Annual Review 2022 184
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
8. Appropriations
Note 8
EUR thousand 2022 2021
Difference between depreciation and amortization according
to plan and depreciation and amortization in taxation -4 -2
Total -4 -2
Note 9
9. Income Taxes
EUR thousand 2022 2021
Change in deferred tax assets - 300
Total - 300
Glaston Annual Review 2022 185
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
10. Fixed Assets
Note 10
Intangible assets
EUR thousand Intangible rights
Other capitalized
expenditure
Advance payments and
investments in progress Tot a l
Acquisition cost 1 January, 2022 5,659 1,284 66 7,010
Additions 65 - 925 990
Disposals -107 -8 - -115
Reclassifications 64 - -64 -
Acquisition cost 31 December, 2022 5,681 1,276 926 7,884
Accumulated amortizations and impairment losses 1 January, 2022 -4,928 -805 - -5,732
Accumulated amortizations of disposals and transfers 103 8 - 110
Amortization of the period -228 -131 - -359
Accumulated amortizations and impairment losses 31 December, 2022 -5,053 -928 - -5,981
Carrying amount at 31 December, 2022 628 349 926 1,903
Carrying amount at 31 December, 2021 732 480 66 1,277
Tangible assets
EUR thousand Intangible rights
Other capitalized
expenditure
Advance payments and
investments in progress Tot a l
Acquisition cost 1 January, 2022 305 129 - 434
Additions - - - -
Disposals -135 -16 - -151
Transfers between items - - - -
Acquisition cost 31 December, 2022 170 113 - 283
Accumulated depreciations and impairment losses 1 January, 2022 -293 -119 - -412
Accumulated depreciations of disposals and transfers 135 16 - 151
Depreciation for the period -6 - - -6
Accumulated depreciations and impairment losses 31 December, 2022 -164 -103 - -267
Carrying amount 31 December, 2022 6 10 - 16
Carrying amount at 31 December, 2021 12 10 - 22
Glaston Annual Review 2022 186
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
11. Investments
Note 11
EUR thousand
Shares
Group companies
Shares
Others
Subordinated loan receivable
Group companies Tot a l
Carrying amount at 1 January, 2022 17,204 8 36,846 54,058
Carrying amount at 31 December, 2022 17,204 8 36,846 54,058
Note 12
12. Shares and holdings owned by the Parent
Subsidiary shares
EUR thousand Ownership-% Number of shares Carrying amount
Uniglass Engineering Oy, Tampere, Finland 100% 20,000 2,351
Glaston Services Ltd. Oy, Tampere, Finland 100% 1,800,000 14,853
Total 17,204
Other
Other shares and holdings 0% 8
Total 8
Glaston Annual Review 2022 187
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
13. Receivables
Note 13
EUR thousand 2022 2021
Non-current receivables
Receivables from external parties
Deferred tax assets 300 300
Total 300 300
Receivables from group companies
Loan receivables 77,700 77,700
Total 77,700 77,700
Non-current receivables, total 78,000 78,000
Current receivables
Receivables from external parties
Trade receivables 55 2
Other receivables 33 33
Prepaid expenses and accrued income 1,234 314
Total 1,322 349
Receivables from group companies
Trade receivables 3,088 2,660
Loan receivables 7,058 7,920
Accrued interest receivables 1,341 1,341
Prepaid expenses and accrued income 217 151
Total 11,704 12,073
Current receivables, total 13,027 12,421
Relevant items of prepaid expenses and accrued income
Interest SWAP 578 -
Financial items 293 279
Prepaid insurances 110 -
Other 470 186
Prepaid expenses and accrued income, total 1,451 465
EUR thousand 2022 2021
Share capital 1 January 12,696 12,696
Share capital 31 December 12,696 12,696
Hedging reserve account 1 January - -
Change in financial year 463 -
Hedging reserve account 31 December 463 -
Reserve for invested unrestricted equity 1 January 112,584 114,270
Return of capital -2,529 -1,686
Reserve for invested unrestricted equity 31 December 110,056 112,584
Retained earnings 1 January -47,165 -42,123
Retained earnings 31 December -47,165 -42,123
Profit / loss for the financial year -1,775 -5,042
Equity at 31 December 74,274 78,115
Distributable funds at 31 December
Reserve for invested unrestricted equity 110,056 112,584
Retained earnings -47,165 -42,123
Profit / loss for the financial year -1,775 -5,042
Distributable funds 61,115 65,419
14. Equity
Note 14
Glaston Annual Review 2022 188
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
15. Accumulated
Appropriations
Note 15
EUR thousand 2022 2021
Accumulated depreciation difference 1 January 100 97
Increase (+) / decrease (-) 4 2
Accumulated depreciation difference 31 December 103 100
Note 16
16. Non-current Liabilities
EUR thousand 2022 2021
Liabilities to external parties
Loans from financial institutions 24,000 31,000
Other liabilities - 6
Liabilities to external parties, total 24,000 31,006
Non-current liabilities, total 24,000 31,006
17. Current Liabilities
Note 17
EUR thousand 2022 2021
Liabilities to external parties
Loans from financial institutions 4,000 4,000
Trade payables - 420
Other liabilities 108 94
Accrued expenses and deferred income 1,662 1,395
Deferred tax liability 116 -
Liabilities to external parties, total 5,770 5,909
Liabilities to group companies
Other interest-bearing liabilities 56,005 51,497
Trade payables - 46
Accrued expenses and deferred income 59 -
Liabilities to group companies, total 56,063 51,544
Current liabilities, total 61,833 57,453
Accrued expenses and deferred income
Salary and other personnel expense accruals 931 953
Interests 236 222
Other 554 220
Accrued expenses and deferred income, total 1,720 1,395
Glaston Annual Review 2022 189
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
18. Contingent Liabilities
Note 18
EUR thousand 2022 2021
Leasing liabilities
Maturity within one year 68 56
Maturity later than one year 62 90
Total 130 145
Other rental liabilities
Maturity within one year 48 49
Maturity later than one year 2 -
Total 50 49
Pledges
On behalf of group companies 10,858 7,734
Loans secured with pledged assets and mortgages
Loans from financial institutions 28,000 35,000
Liens on chattel
On own behalf 97,500 97,500
Carrying amount of pledged securities 14,853 17,204
Mortgages, liens on chattel and pledged assets are given on own and other
group companies behalf.
Liens on chattel are given jointly with Glaston Finland Oy and Glaston Services
Ltd. Oy .
Glaston Annual Review 2022 190
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Signatures for the Board of Directors’ Review
and Financial Statements
Helsinki, 8 February 2023
Veli-Matti Reinikkala
Chair of the Board
Sebastian Bondestam
Deputy Chair of the Board
Sarlotta Narjus Arja Talma Michael Willome
Antti Kaunonen Tero Telaranta
Anders Dahlblom
CEO
The Auditor's note
Our auditor's report has been issued today.
Tampere, 8 February 2023
KPMG Oy Ab
Authorised public accountants
Lotta Nurminen
Authorized Public Accountant, KHT
Glaston Annual Review 2022 191
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Auditor’s Report
To the Annual General Meeting of
Glaston Corporation
Report on the Audit of the
Financial Statements
Opinion
We have audited the financial state-
ments of Glaston Corporation (busi-
ness identity code 1651585-0) for the
year ended 31 December, 2022. The
financial statements comprise the
consolidated balance sheet, income
statement, statement of comprehen-
sive income, statement of changes in
equity, statement of cash flows and
notes, including a summary of signif-
icant accounting policies, as well as
the parent company’s balance sheet,
income statement, statement of cash
flows and notes.
In our opinion
• the consolidated financial state-
ments give a true and fair view of
the group’s financial position, finan-
cial performance and cash flows
in accordance with International
Financial Reporting Standards (IFRS)
as adopted by the EU
• the financial statements give a true
and fair view of the parent com-
pany’s financial performance and
financial position in accordance with
the laws and regulations governing
the preparation of financial state-
ments in Finland and comply with
statutory requirements.
Our opinion is consistent with the
additional report submitted to the
Audit Committee.
Basis for Opinion
We conducted our audit in accord-
ance with good auditing practice in
Finland. Our responsibilities under
good auditing practice are further
described in the Auditor’s Responsi-
bilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent
company and of the group compa-
nies in accordance with the ethical
requirements that are applicable in
Finland and are relevant to our audit,
and we have fulfilled our other ethical
responsibilities in accordance with
these requirements.
In our best knowledge and under-
standing, the non-audit services
that we have provided to the parent
company and group companies are in
compliance with laws and regulations
applicable in Finland regarding these
services, and we have not provided
any prohibited non-audit services
referred to in Article 5(1) of regulation
(EU) 537/2014. The non-audit services
that we have provided have been dis-
closed in note 2.4 to the consolidated
financial statements.
We believe that the audit evidence
we have obtained is sufficient and
appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influ-
enced by our application of materi-
ality. The materiality is determined
based on our professional judgement
and is used to determine the nature,
timing and extent of our audit pro-
cedures and to evaluate the effect
of identified misstatements on the
financial statements as a whole. The
level of materiality we set is based
on our assessment of the magnitude
of misstatements that, individually
or in aggregate, could reasonably
be expected to have influence on the
economic decisions of the users of the
financial statements. We have also taken
into account misstatements and/or pos-
sible misstatements that in our opinion
are material for qualitative reasons for
the users of the financial statements.
Key Audit Matters
Key audit matters are those matters
that, in our professional judgment, were
of most significance in our audit of the
financial statements of the current
period. These matters were addressed
in the context of our audit of the financial
statements as a whole, and in forming
our opinion thereon, and we do not
provide a separate opinion on these
matters. The significant risks of material
misstatement referred to in the EU Reg-
ulation No 537/2014 point (c) of Article
10(2) are included in the description of
key audit matters below.
We have also addressed the risk
of management override of internal
controls. This includes consideration of
whether there was evidence of man-
agement bias that represented a risk of
material misstatement due to fraud.
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Glaston Annual Review 2022 192
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
The key audit matter How the matter was addressed in the audit
Revenue recognition (Note 2.2 Revenue from contracts with customers)
The consolidated revenue comprise different revenue flows based on different
contract types, such as sale of machines, spare parts and services.
Revenue from the sale of goods is recognized at a point in time or over time
when the buyer receives the goods or gains control. Revenue from services
rendered and repair work is recognized when the service has been rendered
or the work has been completed.
The most significant risks relate to revenue from tailor-made glass process-
ing machine deliveries for which the revenue is recognized over time applying
percentage of completion method. These involve management judgment
related to measuring the progress towards complete satisfaction of the
performance obligation and total estimated costs. Net sales for the reporting
period include EUR 147.4 million revenue recognized over time representing 69
percent of total net sales.
Selection of revenue recognition methods and revenue recognition involve
management judgement and thus revenue recognition is considered a key
audit matter.
Our audit procedures included evaluation of the revenue recognition prin-
ciples applied by the Group and assessment of their appropriateness by
reference to IFRS standards.
We have obtained an understanding of processes relating to different
revenue flows and identified and assessed internal controls over revenue
recognition as well as tested their effectiveness. In addition, we performed
substantive testing and analytical procedures, partly based on data analyt-
ics, in order to assess the appropriateness of revenue recognition and the
accounting treatment of recording revenue and the related expenses in the
correct period.
We assessed the control environment in respect of the main sales soft-
ware and the related user rights management.
We discussed with the management the revenue recognition practices
applied and decisions involving management judgement which had an
impact on revenue recognition.
Furthermore, we considered the appropriateness of the Group’s disclo-
sures in respect of revenue recognition principles and net sales.
Valuation of goodwill (Note 3.1 Intangible Assets and 3.4 Depreciation, Amortization and Impairment of Assets)
Value of goodwill amounts to EUR 58.7 million, which is 30 percent of the total
assets and 86 percent of the consolidated equity.
Goodwill is not amortized, instead it is tested for impairment at least on an
annual basis. Impairment tests are based on future cash flow forecasts and
determining the underlying key assumptions require management judgment.
Due to the high level of management judgment related to the forecasts
used in goodwill impairment tests and the significant carrying amounts
involved, valuation of goodwill is considered as a key audit matter.
We have assessed the key assumptions used in the impairment calculations,
such as profitability, discount rate and long-term growth rate with relation to
the forecasts presented to the Board of Directors, external references and
our own views.
We involved KPMG valuation specialists when assessing the technical
accuracy of the calculations and comparing the assumptions used with
external market and industry data.
In addition, we considered the appropriateness of the Group’s disclosures
in respect of goodwill impairment testing.
Glaston Annual Review 2022 193
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Responsibilities of the Board of
Directors and the Managing Director for
the Financial Statements
The Board of Directors and the Man-
aging Director are responsible for the
preparation of consolidated financial
statements that give a true and fair
view in accordance with International
Financial Reporting Standards (IFRS)
as adopted by the EU, and of financial
statements that give a true and fair
view in accordance with the laws and
regulations governing the prepara-
tion of financial statements in Finland
and comply with statutory require-
ments. The Board of Directors and the
Managing Director are also respon-
sible for such internal control as they
determine is necessary to enable the
preparation of financial statements
that are free from material misstate-
ment, whether due to fraud or error.
In preparing the financial state-
ments, the Board of Directors and the
Managing Director are responsible for
assessing the parent company’s and
the group’s ability to continue as a
going concern, disclosing, as applica-
ble, matters relating to going concern
and using the going concern basis of
accounting. The financial statements
are prepared using the going concern
basis of accounting unless there is an
intention to liquidate the parent com-
pany or the group or cease opera-
tions, or there is no realistic alternative
but to do so.
Auditor’s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reason-
able assurance about whether the
financial statements as a whole are
free from material misstatement,
whether due to fraud or error, and to
issue an auditor’s report that includes
our opinion. Reasonable assurance is
a high level of assurance, but is not a
guarantee that an audit conducted
in accordance with good auditing
practice will always detect a material
misstatement when it exists. Misstate-
ments can arise from fraud or error
and are considered material if, individ-
ually or in the aggregate, they could
reasonably be expected to influence
the economic decisions of users
taken on the basis of the financial
statements.
As part of an audit in accordance
with good auditing practice, we
exercise professional judgment and
maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of
material misstatement of the finan-
cial statements, whether due to
fraud or error, design and perform
audit procedures responsive to
those risks, and obtain audit evi-
dence that is sufficient and appro-
priate to provide a basis for our
opinion. The risk of not detecting
a material misstatement resulting
from fraud is higher than for one
resulting from error, as fraud may
involve collusion, forgery, intentional
omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal
control relevant to the audit in order
to design audit procedures that are
appropriate in the circumstances,
but not for the purpose of express-
ing an opinion on the effectiveness
of the parent company’s or the
group’s internal control.
• Evaluate the appropriateness of
accounting policies used and the
reasonableness of accounting esti-
mates and related disclosures made
by management.
• Conclude on the appropriateness
of the Board of Directors’ and the
Managing Director’s use of the
going concern basis of accounting
and based on the audit evidence
obtained, whether a material uncer-
tainty exists related to events or
conditions that may cast significant
doubt on the parent company’s or
the group’s ability to continue as a
going concern. If we conclude that
a material uncertainty exists, we
are required to draw attention in
our auditor’s report to the related
disclosures in the financial state-
ments or, if such disclosures are
inadequate, to modify our opinion.
Our conclusions are based on the
audit evidence obtained up to the
date of our auditor’s report. How-
ever, future events or conditions
may cause the parent company or
the group to cease to continue as a
going concern.
• Evaluate the overall presentation,
structure and content of the finan-
cial statements, including the dis-
closures, and whether the financial
statements represent the underly-
ing transactions and events so that
the financial statements give a true
and fair view.
• Obtain sufficient appropriate audit
evidence regarding the finan-
cial information of the entities or
business activities within the group
to express an opinion on the con-
solidated financial statements. We
are responsible for the direction,
supervision and performance of
the group audit. We remain solely
responsible for our audit opinion.
Glaston Annual Review 2022 194
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
We communicate with those
charged with governance regarding,
among other matters, the planned
scope and timing of the audit and
significant audit findings, including any
significant deficiencies in internal con-
trol that we identify during our audit.
We also provide those charged with
governance with a statement that we
have complied with relevant ethical
requirements regarding independ-
ence, and communicate with them all
relationships and other matters that
may reasonably be thought to bear on
our independence, and where appli-
cable, related safeguards.
From the matters communicated
with those charged with governance,
we determine those matters that
were of most significance in the audit
of the financial statements of the
current period and are therefore the
key audit matters. We describe these
matters in our auditor’s report unless
law or regulation precludes public
disclosure about the matter or when,
in extremely rare circumstances, we
determine that a matter should not be
communicated in our report because
the adverse consequences of doing
so would reasonably be expected to
outweigh the public interest benefits
of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by
the Annual General Meeting on May
28, 2020, and our appointment repre-
sents a total period of uninterrupted
engagement of 3 years.
Other Information
The Board of Directors and the
Managing Director are responsible
for the other information. The other
information comprises the report of
the Board of Directors and the infor-
mation included in the Annual Report,
but does not include the financial
statements and our auditor’s report
thereon. We have obtained the report
of the Board of Directors prior to the
date of this auditor’s report, and the
Annual Report is expected to be made
available to us after that date. Our
opinion on the financial statements
does not cover the other information.
In connection with our audit of the
financial statements, our responsi-
bility is to read the other information
identified above and, in doing so,
consider whether the other informa-
tion is materially inconsistent with the
financial statements or our knowledge
obtained in the audit, or otherwise
appears to be materially misstated.
With respect to the report of the
Board of Directors, our responsibility
also includes considering whether the
report of the Board of Directors has
been prepared in accordance with the
applicable laws and regulations.
In our opinion, the information in
the report of the Board of Directors is
consistent with the information in the
financial statements and the report of
the Board of Directors has been pre-
pared in accordance with the applica-
ble laws and regulations.
If, based on the work we have
performed on the other information
that we obtained prior to the date of
this auditor’s report, we conclude that
there is a material misstatement of
this other information, we are required
to report that fact. We have nothing to
report in this regard.
Tampere, 8 February 2023
KPMG OY AB
LOTTA NURMINEN
Authorised Public Accountant, KHT
Glaston Annual Review 2022 195
Glaston 2022
Sustainability
Governance
FINANCIAL REVIEW
Glaston Corporation
Lönnrotinkatu 11, 00120 Helsinki, Finland
Finland
Tel. +358 500 500
Website: www.glaston.net
Business identity code: 1651585-0
Glaston Corporation is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural,
automotive, solar and display industries. The company also supports the development of new technologies integrating intelligence to glass.
Glaston is committed to providing its clients with both the best know-how and the latest technologies in glass processing, with the purpose of build-
ing a better tomorrow through safer, smarter, and more energy efficient glass solutions. Glaston operates globally with manufacturing, services, and
sales offices in 9 countries. Glaston Corporation is a public limited liability and its shares (GLA1V) are listed on NASDAQ Helsinki Ltd. Small Cap..
Independent Auditor’s Reasonable
Assurance Report on Glaston Corporation’s
ESEF Financial Statements
To the Board of Directors of Glaston
Corporation
We have undertaken a reasonable
assurance engagement in respect
of whether the consolidated finan-
cial statements for the year ended
31 December 2022 included in
the digital financial statements
743700V3I7CLI3DJ8L62-2022-12-
31-en.zip of Glaston Corporation
(Business ID 1651585-0) have been
marked up with iXBRL markups in
accordance with the requirements of
Article 4 of EU Delegated Regulation
2018/815 (ESEF RTS).
The Responsibility of the Board of
Directors and Managing Director
The Board of Directors and Managing
Director are responsible for prepar-
ing the report of the Board of Direc-
tors and financial statements (ESEF
financial statements) that comply with
the requirements of ESEF RTS. This
responsibility includes:
• preparation of ESEF financial state-
ments in XHTML format in accord-
ance with Article 3 of the ESEF RTS
• marking up the primary statements
and the notes to the consolidated
financial statements, and the com-
pany identification data included in
the ESEF financial statements with
iXBRL tags in accordance with Arti-
cle 4 of the ESEF RTS; and
• ensuring consistency between ESEF
financial statements and audited
financial statements.
The Board of Directors and the
Managing Director are also respon-
sible for such internal control as they
deem necessary to prepare the ESEF
financial statements in accordance
with the requirements of the ESEF
RTS.
Auditor’s Independence and
Quality Management
We are independent of the com-
pany in accordance with the ethical
requirements applicable in Finland,
which apply to the engagement we
have performed, and we have fulfilled
our other ethical responsibilities in
accordance with these requirements.
The auditor applies International
Standard on Quality Management
ISQM 1, which requires the firm to
design, implement and operate a sys-
tem of quality management includ-
ing policies or procedures regarding
compliance with ethical requirements,
professional standards and applicable
legal and regulations requirements.
Auditor’s Responsibility
In accordance with the Engagement
Letter our responsibility is to express
an opinion on whether the marking up
of the consolidated financial state-
ments included in the ESEF financial
statements comply in all material
respects with the Article 4 of the ESEF
RTS. We conducted our reasonable
assurance engagement in accord-
ance with International Standard on
Assurance Engagements 3000.
The engagement involves proce-
dures to obtain evidence whether;
• the primary statements of the
consolidated financial statements
included in the ESEF financial state-
ments are, in all material respects,
marked up with iXBRL tags in
accordance with Article 4 of the
ESEF RTS, and;
• whether the notes to the consol-
idated financial statements and
the company identification data
included in the ESEF financial state-
ments data, have been marked up,
in all material respects, with iXBRL
tags in accordance with Article 4 of
the ESEF RTS; and
• whether the ESEF financial state-
ments and the audited financial
statements are consistent with each
other.
The nature, timing and the extent of
procedures selected depend on prac-
titioner’s judgement. This includes the
assessment of the risks of material
departures from the requirements set
out in the ESEF RTS, whether due to
fraud or error.
We believe that the evidence
we have obtained is sufficient and
appropriate to provide a basis for our
opinion.
Opinion
In our opinion, the primary state-
ments of the consolidated financial
statements, the notes to the consol-
idated financial statements and the
company identification data included
in the ESEF financial statements
of Glaston Corporation identified
as 743700V3I7CLI3DJ8L62-2022-
12-31-en.zip for the year ended 31
December 2022 are, in all material
respects, marked up in compliance
with the ESEF Regulatory Technical
Standard.
Our audit opinion on the audit of
the consolidated financial statements
of Glaston Corporation for the year
ended 31 December 2022 is set out in
our Auditor’s Report dated 8 February
2023. In this report, we do not express
any audit opinion or other assurance
conclusion on the consolidated finan-
cial statements.
Tampere 10 March, 2023
KPMG OY AB
Lotta Nurminen
Authorised Public Accountant, KHT
743700V3I7CLI3DJ8L622022-01-012022-12-31743700V3I7CLI3DJ8L622021-01-012021-12-31743700V3I7CLI3DJ8L622022-12-31743700V3I7CLI3DJ8L622021-12-31743700V3I7CLI3DJ8L622021-12-31ifrs-full:IssuedCapitalMember743700V3I7CLI3DJ8L622022-01-012022-12-31ifrs-full:IssuedCapitalMember743700V3I7CLI3DJ8L622022-12-31ifrs-full:IssuedCapitalMember743700V3I7CLI3DJ8L622021-12-31GLA:ReserveOfInvestedUnrestrictedEquityMember743700V3I7CLI3DJ8L622022-01-012022-12-31GLA:ReserveOfInvestedUnrestrictedEquityMember743700V3I7CLI3DJ8L622022-12-31GLA:ReserveOfInvestedUnrestrictedEquityMember743700V3I7CLI3DJ8L622021-12-31GLA:FairValueAndMiscellaneousOtherReservesMember743700V3I7CLI3DJ8L622022-01-012022-12-31GLA:FairValueAndMiscellaneousOtherReservesMember743700V3I7CLI3DJ8L622022-12-31GLA:FairValueAndMiscellaneousOtherReservesMember743700V3I7CLI3DJ8L622021-12-31ifrs-full:RetainedEarningsMember743700V3I7CLI3DJ8L622022-01-012022-12-31ifrs-full:RetainedEarningsMember743700V3I7CLI3DJ8L622022-12-31ifrs-full:RetainedEarningsMember743700V3I7CLI3DJ8L622021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember743700V3I7CLI3DJ8L622022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember743700V3I7CLI3DJ8L622022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember743700V3I7CLI3DJ8L622020-12-31ifrs-full:IssuedCapitalMember743700V3I7CLI3DJ8L622021-01-012021-12-31ifrs-full:IssuedCapitalMember743700V3I7CLI3DJ8L622020-12-31GLA:ReserveOfInvestedUnrestrictedEquityMember743700V3I7CLI3DJ8L622021-01-012021-12-31GLA:ReserveOfInvestedUnrestrictedEquityMember743700V3I7CLI3DJ8L622020-12-31GLA:FairValueAndMiscellaneousOtherReservesMember743700V3I7CLI3DJ8L622021-01-012021-12-31GLA:FairValueAndMiscellaneousOtherReservesMember743700V3I7CLI3DJ8L622020-12-31ifrs-full:RetainedEarningsMember743700V3I7CLI3DJ8L622021-01-012021-12-31ifrs-full:RetainedEarningsMember743700V3I7CLI3DJ8L622020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember743700V3I7CLI3DJ8L622021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember743700V3I7CLI3DJ8L622020-12-31iso4217:EURiso4217:EURxbrli:shares