Annual
Review
2021
Table of Contents
Glaston’s updated strategy for 2021–2025 .......................3
President & CEO’s Review ...........................................................5
Glaston sustainability report
The frontrunner in glass processing ................................8
Megatrends supporting Glaston’s business .............12
Glaston’s sustainability and its management ..........13
UN Sustainable Development Goals .............................. 17
Responsible own activities ...................................................19
Responsible sourcing .............................................................27
Responsible partner ................................................................29
Responsible member of society .....................................32
Corporate Governance Statement 2021 ........................ 36
Remuneration report 2021 .......................................................46
The Board of Directors’ Review 2021..................................54
Per Share Data ................................................................................. 77
Financial Ratios ................................................................................ 78
Definitions of key ratios ............................................................. 80
Consolidated Financial Statements ................................... 82
Consolidated Statement of Financial Position ............ 83
Consolidated Statement of Profit or Loss ......................84
Consolidated Statement of
Comprehensive Income ...........................................................85
Consolidated Statement of Changes in Equity ............86
Consolidated Statement of Cash Flows .........................87
Supplemental Information for Statement
of Cash Flows ...................................................................................88
Summary of significant accounting policies ................89
Parent Company Financial Statements ........................146
Income Statement of the Parent
Company (FAS) ................................................................................ 146
Balance Sheet of the Parent Company (FAS) .......... 147
Parent Company Cash Flow Statement (FAS) .........148
Notes to Parent Company Financial
Statements (FAS) ........................................................................149
Auditor’s Report ............................................................................159
This is voluntary published pdf report,
so it does not fulfill the disclosure
obligation pursuant to Section 7:5§ of
the Securities Markets Act.
Glaston Annual Review 2021 2
Glaston 2021
Sustainability
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Glaston’s updated strategy
for 2021–2025
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. The roadmap for
2021–2025 builds on Glaston’s business
area specific strategic initiatives. The
successful execution of the strategy
is supported by strong leadership and
Group-wide cornerstone projects.
Glaston’s addressable glass pro-
cessing equipment market is expected
to grow by more than 5% annually, on
average, during the strategy period, and
Glaston’s ambition is to clearly exceed
this market growth. Strategic must-win
development initiatives securing net
sales growth and improved profitabil-
ity have been identified in all Glaston’s
business areas and the services busi-
ness. These initiatives are supported
by Group-wide cornerstone initiatives
that target improved commercial and
operational excellence.
Glaston’s core technologies and
lifecycle solutions continue to be at the
center of its strategy and Glaston aims
to take market share in all its business
areas. As the frontrunner in its industry,
Glaston plans to increase its invest-
ments in innovation and development.
Glaston is also continuing its commit-
ment to leading the industry’s digital
transformation. Profitability improve-
ment is supported by net sales growth,
an optimal product offering, as well as
productivity improvements.
Financial targets
Glaston’s new financial targets for the
strategy period 2021–2025 are:
• Annual average net sales growth
(CAGR) clearly exceeding the address-
able equipment market growth of
more than 5%
• Comparable operating margin (EBITA)
of 10% at the end of the strategy period
• Comparable return on capital
employed (ROCE) of 16% at the end of
the strategy period
New non-financial targets:
Addressing the company’s focus on
sustainability, in addition to its financial
targets, Glaston has set new non-
financial strategic targets:
• Customer satisfaction score (Net
Promoter Score, NPS) above 40
• Group-wide safety target measured
as zero lost time accidents (LTA)
• Employee Engagement target
above 75 (out of 100)
• Glaston’s CO
2
emissions (Scope 1
+ 2) in relation to net sales down by
50% from the 2020 level. In 2020,
greenhouse gas emissions were
2,777 tons of CO
2
with net sales of
EUR 170.1 million
Glaston 2021
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CORE TECHNOLOGIES FOR
Heat Treatment
Insulating Glass
Automotive & Display
Innovate with
customers
Lead digital
transformation
Empower
Glastonians
Sustainability
& continuous
improvement
Global
sourcing &
manufacturing
CORNERSTONES
Our vision is to lead the global glass
processing industry forward with innovative
technologies and lifecycle solutions
Climate change & resource scarcity
Urbanization
Changing economical & political landscape
Embedded technology
Social sustainability
MEGATRENDS
ACCELERATING
OUR BUSINESS
Building a better tomorrow
through safer, smarter, and
more energy-efficient
glass solutions
GLASTON´S PURPOSE
We share the passion for glass
We learn from each other
We are committed to our customers
Together we build the future
VALUES
Glaston Annual Review 2021 4
Glaston 2021
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Y
ear 2021 marked a begin-
ning of a new journey both
for Glaston, as we launched
a revised strategy and
financial targets for 2021−2025 and for
myself, as a new CEO & President of
Glaston Corporation.
Throughout 2021, Glaston’s business
showed improvement. Our markets
recovered well and orders received
for the full year increased by 41% com-
pared with the previous year, totaling
EUR 216.2 million, with all segments
contributing to the outcome. Net sales
improved by 7% and amounted to
A year of positive
development
and strategy
clarification
President & CEO’s Review
EUR 182.7 million. For Services, growth
of 15% was recorded. Despite the
challenges caused by supply chain
disruptions and the still ongoing pan-
demic, we can be satisfied with the
improvement in profitability. Compa-
rable EBITA for the full year was EUR
11.1 million, up 43% compared with the
previous year.
Revised strategy launched
A substantial initiative in 2021 was to
renew Glaston’s strategy. The key
objectives of the revised strategy are
reaching clearly improved organic
Glaston Annual Review 2021 5
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growth and profitability. Currently, the
implementation of several strategic
initiatives is well underway and we are
already noting good progress.
One of the strategic initiatives is
focusing on common leadership prin-
ciples, which have a key role in imple-
menting the strategy and embedding
it into everyday working life. Another
focus area is safety, and our group-
wide safety target is zero lost-time
accidents by 2025. We made excel-
lent progress immediately in the first
year as only five lost-time accidents
occurred, compared with 14 in the
previous year.
We are also committed to reducing
our direct and indirect greenhouse
gas emissions in relation to net sales
by 50% by 2025 from the 2020 level. In
2021, our CO
2
emissions in relation to
net sales were down 13% compared
with the previous year. As of January
2022, our production facilities in Fin-
land and Germany have switched to
renewable electricity, thereby signifi-
cantly reducing emissions.
Differentiating us from the compe-
tition, our wide product portfolio and
comprehensive services add value to
our customers, who can benefit from
unifying their technology solutions.
During the year, the strategic and
commercial importance of cross-sell-
ing was clearly demonstrated as we
saw good development in cross-sell-
ing heat treatment and insulating
glass technologies, in particular.
Sustainability as an opportunity
Glaston’s purpose is to build a better
tomorrow through safer, smarter, and
more energy-efficient glass solutions.
As societies take actions towards
carbon neutrality, there is an
increased focus on the energy per-
formance of buildings. 40% of total
energy consumption relates to build-
ings, and windows have an important
role to play when aiming to reduce
CO
2
emissions and increase the
energy efficiency of buildings.
Glaston’s technologies are at the
core of promoting sustainability, as our
products provide key technologies for
improved energy efficiency and safety
in buildings. Energy-efficient modern
double- or triple-glazed insulating
glass units and coated, low-emissivity
safety glass processed with Glaston’s
technologies are key enablers for
meeting the sustainability require-
ments of buildings.
For Glaston, 2021 ended on a
positive note. I’m proud of what we
accomplished together and I would
like to thank the Glaston team for their
contribution throughout the year. I
would also like to thank our customers
and other stakeholders for your con-
tinuous support.
Anders Dahlblom
CEO & President
The key objectives of the revised strategy
are reaching clearly improved organic
growth and profitability”
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Sustainability
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The
frontrunner
in glass
processing
Glaston’s purpose is to build a better
tomorrow through safer and more
energy-efficient glass solutions.
Glaston is the frontrunner in glass processing indus-
try technologies and services. Glass processed
using Glaston’s machines is supplied to the archi-
tectural glass, automotive glass, solar energy and
display industries. Most of the glass produced with
the company’s technology is supplied to the con-
struction industry.
In line with its new vision, Glaston seeks to lead
the global glass processing industry forward with
innovative technologies and lifecycle solutions.
Greater attention is being paid to the safety
of buildings, and for glazing solutions this means
increasing use of tempered and laminated glass.
Tempering, laminating and insulating glass pro-
cesses are Glaston’s core expertise, and in these the
company offers the most advanced technology.
As environmental awareness increases, demand
for more energy-efficient and environmentally
sustainable glass solutions is continually growing.
Energy-efficient double- or triple-glazed insulating
glass units and in these used coated, low-emissivity
glass processed with Glaston’s technology meet the
energy-saving needs of buildings.
The debate on climate change is also strongly
reflected in the glass industry. This has led to rapid
development in smart glass, thin glass and glass
used in solar energy solutions. As our industry’s inno-
vative technology leader, Glaston is strongly involved
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in this development, and is continually
launching more advanced technology
to meet the changing needs of the
market.
In 2019, the scope of Glaston’s
operations grew significantly when the
company acquired the German-Swiss
company Bystronic glass. The acqui-
sition expanded Glaston’s offering to
insulating glass technologies in the
architectural market and to pre-pro-
cessing in the automotive and display
markets.
Glaston has production in Germany,
Finland, China and Switzerland. Glas-
ton’s factories in Finland, Switzerland
and China assemble machines, while
in Germany machines are manufac-
tured. In addition, the company has
sales and service points in 10 coun-
tries. From these locations, Glaston
serves its customers, who operate in
over 100 countries. The company is
domiciled in Helsinki, Finland.
Glaston’s group structure comprises
three segments:
• Glaston Insulating Glass
• Glaston Heat Treatment and
• Glaston Automotive & Display
In addition, Glaston offers digital
services, such as glass processing
machine remote monitoring and fault
analysis services, and consulting and
engineering services. Personnel also
work in sales of machinery and ser-
vices and in Group functions.
Glaston’s ownership structure
Glaston Corporation’s share (GLA1V) is
listed on the main list of Nasdaq Helsinki
Ltd. At the end of 2021, Glaston had
7,427 shareholders. At the end of the
year, the company’s largest sharehold-
ers were Ahlstrom Capital B.V. (26.39%),
Hymy Lahtinen Oy (12.22%), Varma
Mutual Pension Insurance Company
(7.50%), Ilmarinen Mutual Pension Insur-
ance Company (7.31%) and OP-Finland
Small Firms Mutual Fund (6.04%).
New strategy shows direction
Glaston’s new strategy for 2021–2025
was announced in August 2021, with
the objective of clearly improved
organic growth and profitability. The
successful implementation of the
strategy is supported by Group-wide
cornerstone initiatives.
In Glaston’s updated strategy, sus-
tainability is one of the priorities, and
a strategic cornerstone initiative has
been established to develop it. The
majority of the company's business is
targeted at the architectural segment,
in which Glaston’s products provide key
technologies to improve the energy
efficiency and safety of buildings.
Glaston Automotive & Display segment
provides glass processing machines
and maintenance, upgrade and mod-
ernization services as well as spare
parts for the automotive and display
industries. The Automotive & 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 tech-
nology machines for the man-
ufacture of insulating glass,
maintenance, upgrade and
modernization services, as well as
spare parts. The Insulating 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 com-
prises the Heat Treatment Technologies
product area and maintenance services
for heat treatment machines. Most of
the segment’s personnel are located in
Finland.
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Glaston’s cornerstone initiatives
Sustainability as the cornerstone of the strategy
Implementation of the strategy will be 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 change: building the tools and infrastructure
across all Glaston operations to lead the industry’s digital
transformation.
3. Empowering Glastonians to thrive: is essential to building the
desired corporate 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 efficiency and growth through more harmonized
sourcing and manufacturing processes.
In connection with the strategy work, new non-financial strategic
targets promoting sustainability were set:
• Customer satisfaction score (Net Promoter Score, NPS) over 40
• Group-wide safety target of zero lost time accidents (LTA, pro-
gress measured as accident frequency, LTIFR)
• Employee engagement rate above 75 (out of 100)
• Glaston’s CO
2
emissions (Scope 1+2) in relation to net sales
down by 50% from the 2020 level.
In 2021, through Glaston’s updated strat-
egy, our sustainability work took a big
leap forward as part of our strategy and
systematic management.
We have, of course, been working for
years to promote sustainable develop-
ment. The strategy process and its
various analyzes helped us to see
more clearly how we can contribute to
climate change mitigation, the energy
efficiency of buildings and the devel-
opment of safety directly through our
business operations, while at the same
time creating new opportunities.
In our updated strategy, Elevate
sustainability and continuous improve-
ment is an area of focus, and a strategic
cornerstone initiative has been estab-
lished to develop it. We also set the first
Glaston-wide non-financial targets for
2025, and established a Sustainability
Working Group for more detailed plan-
ning and implementation of the goals of
the strategic cornerstone initiative.
I am delighted with our new working
group, which comprises experts from
the different parts of our organization.
The sustainability themes to be man-
aged and developed are broad, our
expertise covers different fields – and
we are constantly learning more
together. Through clear responsi-
bilities and an updated materiality
assessment, we will also become
more structured and systematic in
what we do. During 2022, as the work
progresses, we will prepare plans for
the coming years that will take sus-
tainability forward.
There is still a lot of work to be done,
and we will continue to work confi-
dently with Glaston employees and
our stakeholders during 2022!
Päivi Lindqvist,
CFO & sponsor of the cornerstone
initiative Elevate sustainability and
continuous improvement
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216.2
Impact of coronavirus on Glaston
The COVID-19 pandemic has continued
to impact Glaston. Due to preventive
measures introduced at an early stage,
such as a recommendation to work
remotely and strict safety guidelines,
Glaston has been able to maintain its
production operations, and there were
few cases of coronavirus infection
among personnel.
The importance of a safe and
healthy life and working environment
has grown in recent years, and for Glas-
ton safety is also a strong priority inter-
nally. During the pandemic, many Glas-
ton employees have worked remotely
in order to protect their own health and
that of production personnel.
Different countries’ changing
travel restrictions and restrictions on
customers’ factory visits have contin-
ued to adversely affect maintenance
and service operations. Installation
work has been adapted to current
conditions, however, with new instal-
lation methods, such as precise travel
planning and digital support tools. In
Germany, Glaston trained first-aid
medical staff to carry out rapid COVID
tests. All of the company's production
facilities were fully operational and
Glaston’s business developed posi-
tively during 2021.
Continuous dialogue and development work
Glaston’s goal is to be a reliable and
responsible partner for its stakeholders.
The most significant stakeholders are
current and potential customers and
employees, shareholders and investors,
suppliers and subcontractors, the media,
public authorities and local communities
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 cornerstone
initiatives is Innovate with customers to win,
which focuses on strengthening the com-
pany’s technology leadership by seamless
integration of customer understanding with
faster innovation and development work.
To remain at the forefront of the devel-
opment of glass processing products and
services, Glaston invests significantly in
the continuous development of its core
business technology portfolio and its
research and development activities.
Scope of the report
This sustainability report describes Glaston
Group’s operations in 2021. The content
of the report and the themes covered are
based on Glaston’s updated strategy as
well as a materiality assessment updated in
autumn 2021. The report covers the entire
Group.
Key figures 2021
APAC ...............15%
Americas .....30%
EMEA ..............55%
Net sales per
region
Orders received per product area, M€
Heat Treatment Technologies
Insulating Glass Technologies
Automotive & Display Technologies
Services
Unallocated and eliminations
153.5
2021
2020
EMEA ............73%
Asia ............... 20%
Americas ......7%
Personnel per region
at end of year, %
Heat Treatment
Insulating Glass
Automotive & Display
2021
2020
94.8
63.9
Order book, EUR million
11.1
2021
2020
7.7
Comparable EBITA, EUR million
94,8
63,9
182.7
M€
750
employ-
ees
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Megatrends supporting Glaston’s business
Glaston’s business and
product development are
particularly affected by the
megatrends of urbanization
and growing environmental
awareness. With the growing
use of glass, expectations
for its energy efficiency,
safety and versatility have
increased.
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 urbani-
zation, 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 a
more energy-efficient society by offer-
ing its customers a wide range of prod-
ucts and services that enable them to
manufacture more energy-efficient
windows and insulating glass units.
Climate change and resource efficiency
The use of glass in buildings has
increased significantly; well-designed
use of glass can reduce the energy
consumption of buildings, improve
their sound insulation and at the same
time increase interior brightness. Peo-
ple’s preferences are also increasing
the use of glass as a building material.
This development will drive growing
demand for energy-saving glass,
smart insulating glass units 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.
Safety
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 regu-
lar glass and do not pose a risk in the
event of breakage.
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 work-
place 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.
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Glaston’s sustainability and its management
Human resources
• Health & safety and risk prevention
• Competencies and skills, development
and trainings
• Diversity & Inclusion
• Equality, anti-discrimination, anti-harassment
• Good leadership
Environment
• Climate impact oversight and scenarios
• Risks and possibilities relating to tightening
emissions 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
• Machine safety and advising customers
in operating the machines
• Digitalization and Automation
• Data safety and security
• Energy and material efficiency targeting
circular economy
• End product quality, safety and recyclability
Responsible sourcing Responsible member of society
Suppliers
• Supplier requirements, assessments and
audit
• Human rights and workplace safety within the
supply chain
• Anti-corruption in supply chain and sourcing
• Environmental matters in the supply chain
Sustainable tomorrow
• Indirect impacts on energy efficient cities
and societies
• Indirect energy and emissions reductions
• Indirect material reductions
• Sustainable end-product applications
• Development of the industry, research
co-operation
• Contributing to the decarbonization of
societies
Responsible own activities Responsible partner
Glaston is committed to
providing a safe and good
workplace for its employ-
ees, being a responsible
partner to its customers,
utilizing resources effi-
ciently, and reducing the
environmental impact of
its production processes.
Glaston’s most significant
environmental impacts
arise via the use of its prod-
ucts, and the company’s
product range meets the
growing demand for more
energy-efficient and envi-
ronmentally sustainable
glass solutions.
At the end of 2021, Glaston updated
its material topics of sustainability
to reflect the new strategy and
changes in the operating environ-
ment. The assessment also took
into account the views of external
stakeholders and the company’s
own personnel.
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The update revised the content of
previously identified material topics.
Glaston’s material topics are:
• responsible own activities (per-
sonnel, environment, responsible
business)
• responsible sourcing
• responsible partner and
• responsible member of society.
In connection with the materiality
review, the most significant climate and
biodiversity risks related to and arising
from Glaston’s operations 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.
Sustainability Working Group
coordinates work
One of the focus areas of Glaston’s new
strategy is sustainability. The com-
pany has established a management
structure and clear responsibilities for
implementing Glaston’s sustainability
practices. Glaston’s day-to-day choices
are guided by the Code of Conduct.
In order to systematically develop
the sustainability agenda, Glaston
established in autumn 2021 a Sustain-
ability Working Group, which includes
experts from various functions. The
working group’s mandate is to coordi-
nate sustainability development in Glas-
ton, to create uniform processes and
tools for sustainability work throughout
the company, and to be responsible
for the monitoring and reporting of
the work. The working group will also
develop sustainability further to capture
business opportunities and to meet
growing regulatory requirements and
stakeholder expectations. The group
reports to the Executive Management
Group and the Board of Directors.
Sustainability targets
In connection with strategy work, new
Group-wide non-financial strategic
targets promoting sustainability were
set for 2025:
• Safety target measured of zero lost
time accidents (LTA, measured as
accident frequency, LTIFR)
• Employee engagement rate over 75
(out of 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 targets
were promoted and revised during
2021. New, revised targets were set for,
among other things, the calculation
of value-chain greenhouse gases and
suppliers’ commitment to Glaston’s
Code of Conduct.
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Topic Indicator Target Outcome Timetable
Responsible
business
Training of personnel in the Code of
Conduct
Training coverage 100% Training began in 2021; coverage was
97% at the end of the year.
Training will become part of the
induction of new employees.
Continuous
Safe workplace
Accident frequency (LTIFR), number of acci-
dents per million hours worked
Accident frequency zero LTIFR in 2021 = 3.3 2025
Reports of workplace harassment No reports In 2021, no cases of workplace
harassment were reported.
Continuous
Employee engagement rate Employee engagement rate over 75
(out of 100)
Baseline will be measured during 2022 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 (16.3 tCO
2
/€ million).
Outcome (14.3 tCO
2
/€ million)
-13% compared with 2020 level
2025
Emissions in value chain Scope 3 emissions to be calculated
during 2022
-
2022
Energy and material efficiency Target to be specified during 2022 - 2022
Responsible
sourcing
Commitment of suppliers to Glaston’s Code
of Conduct (new and current suppliers)
Commitment coverage 100% Commitment to be included in
contracts during 2022
2025
Responsible
partner
Industry’s best customer experience Customer satisfaction score (NPS) more
than 40
NPS measurement throughout Glaston
during 2022
2025
Key sustainability objectives
Code of Conduct guides daily choices
Glaston’s Code of Conduct provides
all Glaston personnel with guidelines
on acting ethically and responsibly in
the workplace, in interaction with vari-
ous partners, customers and suppliers
and as a responsible actor in soci-
ety. The Code of Conduct includes,
among other things, a commitment
to respect human rights, and strictly
prohibits any form of harassment.
In its everyday activities, Glaston is
committed to combating bribery and
corruption. Glaston has its own oper-
ating locations in ten countries, and
from these we serve our customers
in over 100 countries. The company’s
own operations are complemented by
a global agent network. Glaston rec-
ognizes that there is a risk of corrup-
tion and fraud in some of the compa-
ny’s operating regions and countries.
Glaston’s separate Anti-bribery and
anti-corruption policy clearly sets out
our practices and raises 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 honestly in accordance with
ethical standards and in compliance
with anti-corruption laws, rules and
regulations.
Glaston Annual Review 2021 15
Glaston 2021
Sustainability
Governance
Financial review
Training in the Code of Conduct is
arranged for all personnel. The objec-
tive of the training is not only to famil-
iarize Glaston’s personnel with the
updated guidelines, but also to sup-
port and strengthen Glaston’s com-
mon ethical approach and to identify
and address any problem areas.
Training is also provided in the content
of the anti-bribery and anti-corruption
policy to those whose working tasks
are closely related to the issue.
Training in ethical principles is an
integral part of the induction of new
employees, and the goal is that all
Glaston personnel will attend such
training every two years. The Code of
Conduct is published in Finnish, Eng-
lish, German, Chinese and Russian so
that as many employees as possible
can read it in their own language.
Glaston also published a separate
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 manage-
ment policies. Safety at work is also
one of the non-financial targets of
Glaston's strategy.
Glaston continually develops the
quality, reliability and energy-effi-
ciency of its products. At Glaston’s
assembly and production units, the
company operates in accordance
with the ISO 9001 quality manage-
ment system. In Finland, Glaston man-
ages environmental issues in accord-
ance with the ISO 14001 environmental
management system.
Glaston Annual Review 2021 16
Glaston 2021
Sustainability
Governance
Financial review
Glaston’s responsi-
bility 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
• occupational health care in all operating countries according to
local needs and requirements
• minimizing health risks: e.g. in Finland, enhanced health checks
for over 50-year-olds, hobby sessions and exercise benefits,
strict safety rules and remote-work recommendations in order
to prevent spread of coronavirus
• 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, clean and
environmental friendly production processes
• increasing urban safety through the use of safety glass
• 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 material
and other waste
• ISO 9001 quality management system and ISO 14001
environmental management system
• 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 2021 17
Glaston 2021
Sustainability
Governance
Financial review
Net impacts are a matter of measur-
ing the most significant positive and
negative effects of a company’s core
business and linking them together:
what resources the company uses
and what it achieves with them. The
essential aspect of the study is the net
sum of impacts, i.e. how much value
the company creates relative to the
costs and drawbacks it causes.
The model developed by the
Upright Project is based on artificial
intelligence modeling that utilizes
machine learning, in which informa-
tion from millions of scientific articles
is combined into a commensurate
calculation of the company’s opera-
tions, products and services.
The results show that Glaston’s
main impact is its positive social
impact through jobs and the payment
of taxes. In addition, the compa-
ny’s excellence in glass processing
technologies also facilitates socially
beneficial product development.
Achieving these positive results
gives rise, however, to greenhouse gas
emissions and glass waste throughout
the glass processing value chain. In the
study, Glaston’s carbon footprint was
estimated to be 34,400 tonnes of CO
2
e,
of which the company’s own opera-
tions account for approximately 8%.
On the other hand, Glaston excep-
tionally also has a positive impact on
reducing greenhouse gas emissions
through the insulating glass manufac-
tured by its customers using Glaston’s
technology. Tempered and laminated
glass produced with Glaston’s technol-
ogy is also safe for users, as it does not
cause injury in the event of breakage.
Largest impacts under
examination
NET IMPACT CALCULATED
Impact Negative PositiveScore
In order to better understand the effects caused and induced by Glaston’s
business on the environment, people and society, we studied the company’s
net impacts in 2020–2021 in collaboration with the Finnish Upright Project.
Net score
Nasdaq Helsinki net score -11%
+1.0
Environment -1.8
+0.4-0.3
-2.8
Health
+0.0
+0.2-0.9Knowledge
-0.7
+15%
-0.0Society
+3.2
+3.2
Glaston Annual Review 2021 18
Glaston 2021
Sustainability
Governance
Financial review
Responsible
own activities
Human resources
• Health & safety and risk
prevention
• Competencies and skills,
development and trainings
• Diversity & Inclusion
• Equality, anti-discrimination,
anti-harassment
• Good leadership
Environment
• Climate impact oversight and
scenarios
• Risks and possibilities relating to
tightening emissions regulation
Responsible business
• Financial responsibility ensuring
competitiveness and profitability
• Anti-corruption and fair
competition practices
• Responsible sales
Glaston 2021
Sustainability
Governance
Financial review
Professional, committed and
healthy personnel are the
foundation of Glaston’s suc-
cess. Glaston attends to the
continuous development of
the skills of its personnel by
providing its employees with
an inspiring work environ-
ment that facilitates utiliza-
tion of existing skills and the
further deepening of exper-
tise. We respect and promote
the equality and diversity of
personnel.
We empower our employees to thrive
Glaston’s personnel
In 2021, the number of Glaston per-
sonnel rose by 4%, and there were 750
(723) Glaston employees at the end of
the year.
As a result of orders received, the
previously agreed temporary layoffs in
Finland were canceled at the begin-
ning of February 2021. Short-time work
introduced in Switzerland in autumn
2019 ended at the beginning of Febru-
ary. However, Swiss production person-
nel temporarily returned to reduced
working hours in May and June due to a
lower workload. Operations in Glaston’s
Brazilian subsidiary were discontinued
in early 2021. The Brazilian operations
had employed nine people.
At the end of 2021, Glaston had
operations in 10 countries, of which the
three largest, by employee numbers,
were Germany, Finland and China. In
Glaston, employee turnover in 2021
was 8.5% in Germany, in Finland 17.2%
and in Switzerland 7%. Most employ-
ment relationships are permanent. The
average age of personnel is 44.7 years.
Of Glaston’s personnel, 83% are
men and 17% are women. At the end
of 2021, 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.
<20
>75
Germany
20–29 Finland
30–39 China
40–49 Switzerland
50–59 North+South
America
60>
12
723
750
50 100 150 200 250 300
Employee age distribution Employees by country or region (FTE)
Employees by type of employment Personnel per function
95
790
187
357
224
198
84
Blue-collar ......................................34%
White-collar ..................................66%
Insulating Glass Technologies..... 32%
Heat Treatment Technologies ....25%
Automotive & Display
Technologies ...........................................6%
Services .....................................................22%
Administration, group functions
.....9%
Sales ...............................................................6%
2020
2021
2019
2018
Employees at end of year
Target: Employee
Engagement
Rest of EMEA
APAC
Glaston Annual Review 2021 20
Glaston 2021
Sustainability
Governance
Financial review
Good leadership and employee
engagement
Empowering Glaston people to thrive
is one of the cornerstone initiatives
of our new strategy. An important
role in achieving these goals is played
by developing leadership as well as
common leadership principles and
work culture, mapping the competen-
cies and talents of Glaston personnel,
supporting various work paths within
Glaston, and flexibly coordinating work
and leisure.
With the major acquisition of
Bystronic glass, Glaston’s employee
numbers more than doubled in 2019.
Work to find a common operat-
ing approach and merge operating
locations began immediately at that
time, and the expected synergies were
achieved and even exceeded in many
places.
Work to develop a common operat-
ing approach and organizational culture
continued in 2021 in the second phase
of integration, focusing on realizing the
full potential and a common growth
strategy. Working as a united team
and organization with clear goals and
priorities will increasingly benefit the
company and its customers.
Leadership development and the
leveraging of common leadership
principles will play a key role in imple-
of the training has been product and
process training for sales and service
personnel, as well as technical training
for those engaged in engineering and
assembly work. Furthermore, product
and safety training is provided to sales,
service and production personnel.
Thanks to Glaston’s internal eSkills
online learning platform, training
is flexibly available online, offering
personnel the opportunity to develop
their skills independently. The eSkills
platform provides training related to
products, processes and operating
practices. Training on ethical practices
is also provided through the platform.
Each year, performance appraisals
are conducted within Glaston and
all employees are covered by the
appraisal process. In the performance
appraisals, targets are jointly agreed
for the coming year and an evaluation
is made of performance during the
previous year and of the achieve-
ment of targets set for the previous
year. Particular attention is paid to the
planning of each person’s own skills
development.
Rewarding good work
As a rule, all of Glaston’s personnel are
covered by an annual bonus scheme,
and bonuses are determined on the
basis of Glaston’s financial perfor-
menting the strategy and embedding
it into everyday working life. In 2021,
we launched the supporting pillars of
Glaston’s leadership, which articulate
our vision for high-quality, empowering
leadership. At the end of the year, we
organized coaching for all our super-
visors in which we harnessed part-
ner sparring methods to deepen our
knowledge of the supporting pillars of
leadership and share our experiences
of leadership.
Engaged employees play an impor-
tant role in achieving strategic goals.
One of the Group’s non-financial targets
is to raise the employee engagement
rate to more than 75, on a scale of 1–100,
by 2025. The current state of employee
engagement will be measured with the
aid of an employer image survey, which
will be launched in early 2022.
Employees’ satisfaction with their
work at Glaston was surveyed at the
end of 2021 with a revised One Glaston
Survey. The survey covered, among
other things, Glaston as an employer,
the company's strategy and goals,
and employees’ own work. The results
showed that staff satisfaction is at a
good level and they are happy to rec-
ommend the company as a workplace.
Internal communication and coopera-
tion between organizations were identi-
fied as areas for development.
Equal treatment and prohibition of
harassment
All Glaston employees are treated
fairly and equally, and discrimination
is strictly prohibited. The diversity
and equality of personnel are impor-
tant for Glaston’s success, and we
are continuously developing our
approaches and processes to better
address potential unconscious biases
in respect of them.
The above-mentioned Glaston
Code of Conduct prohibits any form
of harassment. All cases reported are
investigated and, if deemed appropri-
ate, the necessary action is taken. The
parties concerned are informed of the
outcome of the process. In 2021, no
cases of workplace harassment were
reported.
Continuous skills development
Expert personnel are the foundation
of Glaston’s success. Glaston attends
to the continuous development of
the skills of its personnel by providing
its employees with an inspiring work
environment that facilitates utilization
of existing skills and the further deep-
ening of expertise.
In Glaston, personnel training is
mainly organized according to local
needs. In addition to supervisor
leadership development, the focus
Glaston Annual Review 2021 21
Glaston 2021
Sustainability
Governance
Financial review
Glaston’s
remunera-
tion report
wins award
In 2021, the European Union’s Share-
holder Rights Directive required, for
the first time, that listed companies
publish a remuneration report for
governing bodies under the new reg-
ulations and submit the report to the
annual general meeting for approval.
In March 2021, Glaston published
its first remuneration report, which
presents information on the remu-
neration of the Board of Directors,
the President & CEO and the Deputy
CEO for the financial year 2020 and
a description of the development of
remuneration. Finland’s best remu-
neration reports of listed companies
were selected in October 2021. The
award for the Small Cap Series was
won by Glaston, whose remunera-
tion report was described as being
clear, comprehensible and suffi-
ciently concise. The report received
a special mention for its effective
introduction, which created a good
overall picture of remuneration.
mance. In addition, the reward scheme
includes the Glaston Way awards,
which are based on good work perfor-
mance supporting the achievement of
strategic goals in line with the compa-
ny’s values.
Safeguarding employee safety
and well-being
Glaston attends to the health, working
capacity and safety of its personnel
in many ways, and actively monitors
occupational safety.
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 and manage safety, Glaston
established a steering group consist-
ing of representatives from different
functions and countries. At its regular
meetings, the steering group mon-
itors the development of indicators
measuring occupational safety and
prepares plans for the further devel-
opment of a safe working culture. An
important measure in developing a
safety culture is to promote and har-
monize the reporting of accidents and
near misses, as well as safety stand-
ards and general safety awareness
throughout the Group.
The day-to-day management and
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. On average,
occupational safety reviews are con-
ducted every three months and, based
on them, development measures are
agreed upon. Occupational safety train-
ing is regularly arranged in all of Glas-
ton’s assembly and production units.
Our target is zero accidents at work.
We did not yet achieve this target; in
2021, there was a total of 5 lost time
accidents at work or on a business trip
leading to lost time, and the accident
frequency was 3.3. Positive develop-
ment was significant compared to
the previous year, however, when the
accident frequency was 10.8. The most
typical accidents are hand injuries,
such as cuts and various sprains.
We support the well-being of our
employees and encourage them to
exercise. In Finland, Glaston offers joint
activity opportunities and exercise ben-
efits. In Germany and in Finland, person-
nel have the option of using a company
bicycle. With the shift to teleworking, we
sought to ensure our employees’ coping
in work and physical condition.
Due to preventive measures intro-
duced at an early stage of the coro-
navirus pandemic, such as a recom-
mendation to work remotely and strict
safety guidelines, Glaston has been able
to maintain all of its production opera-
tions, and there have been few cases of
coronavirus infection among personnel.
Operational and safety instructions for
personnel were revised according to the
prevailing situation and recommenda-
tions.
0
Target: Lost Time
Accidents
Glaston Annual Review 2021 22
Glaston 2021
Sustainability
Governance
Financial review
Glaston views the promotion
of sustainable development
as a business opportunity
and, as the frontrunner in its
field, the company is involved
in creating industry stand-
ards and practices in relation
to sustainability, such as for
energy efficiency and safety.
In glass industry sustainability issues,
there is an emphasis on the energy
efficiency of glass manufacturing and
further processing. Glass production
processes are energy-intensive and
the industry’s key goal is to further
reduce its energy consumption as
one means of reducing the industry’s
carbon dioxide emissions.
In this, the energy efficiency of
buildings plays a key role in transi-
tioning to a clean and carbon-neu-
tral economy. 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.
Therefore, improving the insulation of
buildings is of great importance.
Glaston’s largest customer segment
is the architectural and construction
industry. New standards, measures
promoting carbon neutrality in Europe,
and stricter legislation are supporting
the use and development of more
environmentally aware and energy-
efficient solutions. At the same time,
development of local control of con-
struction with regard to safety and
quality regulations is evident in many of
Glaston’s market areas.
Glass will play a key role in achieving
the energy efficiency targets for build-
ings in both new and renovation con-
struction. The technologies developed
by Glaston enable the production of
more energy-efficient glass structures.
Glaston continuously strives to
reduce the environmental impacts
arising from its activities, use of
machines on customers’ premises,
and its end products.
Energy-efficient technology
The most significant environmental
impacts of Glaston’s operations are
mainly associated with the use of the
machines sold. Particularly in heat
treatment machines, electricity con-
*) Source: Directive of the European Parliament and of the Council on energy efficiency, 2021.
Energy efficiency as an opportunity
Energy efficiency of
buildings in Europe
The goal of the Renovation Wave
Strategy, published by the Euro-
pean Commission in 2020, is to at
least double the number of reno-
vations over the next decade 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 business, as coated
double and triple insulating
energy-saving glass produced
with Glaston’s technologies are
key solutions in energy saving for
windows and glass façades.
The glass processing industry
has actively developed types of
glass that can be used effec-
tively to reduce the need for
heating and cooling and thereby
change the energy consumption
of buildings.
sumption is linked to the customer’s
production. Automation and various
options are used to optimize the
energy consumption of the machines
to better match the customer’s pro-
duction, while achieving significant
improvements in the energy con-
sumption of processes.
Glaston’s product development
has long focused on improving the
energy efficiency of its machines, and
the company has managed to reduce
significantly the energy consumption
of its products. For example, in the
tempering process of coated ener-
gy-saving glass, energy consumption
has been reduced by around 30% over
the last decade.
Electricity consumption in the equip-
ment used in the manufacturing of glass
pre-processing machines and insulat-
ing glass units is low and, as a result of
product development, consumption
has been reduced even further.
A more specific target for energy
and material efficiency will be set dur-
ing 2022. As part of setting the target,
the most significant opportunities for
reducing energy consumption and
emissions will be identified and an
Glaston Annual Review 2021 23
Glaston 2021
Sustainability
Governance
Financial review
implementation plan prepared.
In product development, Glas-
ton utilizes new technology and the
opportunities created by digitalization
through, among other things, utilizing
data received from machines. With
the aid of cloud services and the
industrial internet, the company helps
its customers to use their machines
as efficiently as possible. A real-time
quality measurement system detects
deviations in the quality of processed
glass immediately, thereby minimizing
material waste.
Positive climate impacts
The architectural and construction
industry is Glaston’s largest customer
segment. The positive climate impact
of the glass installed in buildings is
therefore highly important for Glaston.
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*.
Solar energy is also growing in
popularity, and the glass used in solar
cells and panels is subject to exacting
quality requirements, for example with
respect to glass thickness and curved
surfaces. Glaston provides engineer-
ing and consulting services for the
production of energy glass windows
as well as for solar energy applications.
Glaston’s impacts on the environment
In its own activities, Glaston’s most
significant environmental impacts
arise from energy consumption and
related emissions, waste and trans-
portation. In the use of machines,
the main environmental aspect is the
energy consumption of the machines.
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 the certified ISO
14001 environmental management
system.
On its premises, Glaston conducts
regular energy audits, and is con-
stantly improving the energy-effi-
ciency of its properties. For example,
oil consumption and resultant emis-
sions were significantly reduced when
heat pumps were installed, replacing
oil as a heating source.
The commissioning of photovoltaic
systems is being evaluated at all of the
Group’s factories, and in Neuhausen,
Germany electric cars will begin to be
offered as company cars, and electric
car charging points installed.
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.
2019 2020 2021
Fuel oil, diesel and natural gas 3,460 3,179 3,349
Purchased electricity and heat 7,891 7,949 6,746
Tot al 11,351 11,128 10,095
2019 2020 2021
Scope 1 (Fuel oil, diesel and natural gas) 732 678 708
Scope 2 (Purchased electricity, heat and cooling)* 2,098 2,099 1,900
Tot al 2,830 2,777 2,608
Energy consumption (MWh)
Greenhouse gas emissions (tCO
2
)
*Calculation mainly based on actual energy consumption; consumption of individual
premises is based on an estimate
The 2021 calculation includes an estimate of Russia LLC Glaston emissions
* Source: Glass for Europe
Glaston Annual Review 2021 24
Glaston 2021
Sustainability
Governance
Financial review
Committed to reducing emissions
Emissions from Glaston’s own opera-
tions totaled 2,608 tCO
2
in 2021 (2,777
tCO
2
in 2020), of which fuels and natural
gas (Scope 1) account for around 27%
and electricity and district heat (Scope
2) for about 73%. Scope 2 emissions
will decline significantly when, from the
beginning of 2022, the Tampere, Finland
and Neuhausen, Germany factories
switch to using electricity produced
exclusively from renewable energy.
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. Relative to
net sales, Glaston’s Scope 1 and 2
emissions (14.3 tCO
2
/EUR million)
decreased by 13% compared to the
baseline in 2020 (16.3 tCO
2
/EUR million).
At the end of 2021, a study was
conducted in collaboration with the
Upright Project to assess the net
Waste disposal 2021
Estimated breakdown of Glaston’s
greenhouse gas emissions 2021
Recycling and energy ............90%
Landfill .............................................. 10%
Scope 1: fuels .................................... 2%
Scope 2: electricity and heat ...6%
Scope 3*: value chain .................92%
Finland
Germany
China
Switzerland
2020
2021
2019
2018
2017
Waste by country,
tonnes
400
452
16.3
14.3
8.2
447
469
455
Target 2025
2021
2020
Greenhouse gas emissions to net sales
(tCO
2
)/EUR million)
-50%
Target: CO
2
emissions
effects on the environment, peo-
ple and society caused and induced
by Glaston’s business activities. The
study estimated Glaston’s total carbon
footprint to be 34,400 tonnes of CO
2
,
most of which, about 92%, arises in the
company’s value chain (Scope 3). The
company intends to review the calcula-
tion of Scope 3 emissions during 2022.
Recycling of packaging materials
and waste
The primary aim is to prevent the gen-
eration of waste. The goal is to mini-
mize the amount of waste in general,
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 2021, the total amount of
waste increased by around 13%, but at
the same time a larger proportion was
directed to recycling or for energy.
*estimate: The Upright Project
Glaston Annual Review 2021 25
Glaston 2021
Sustainability
Governance
Financial review
Financial responsibility is reflected in
Glaston’s responsible, long-term and
sound financial management. Glas-
ton applies a risk management policy
approved by the company's Board of
Directors.
Glaston is committed to comply-
ing with local tax laws and regulations
as well as the OECD Transfer Pricing
Guidelines. Glaston is committed to
pay taxes and other tax-like charges
based on current laws and to report
and disclose its tax information in
accordance with applicable legisla-
tion. Glaston maintains accounting
systems and controls that support tax
compliance. The company operates
transparently and appropriately with
all tax authorities.
Generating economic value added
Sustainable value creation requires
motivated employees, competitive
products and solutions, and satisfied
customers. Sustainable operations
facilitate Glaston’s ability to fulfill its obli-
gations towards its key stakeholders.
Personnel salaries, payments to goods
and service providers, social taxes, and
potential dividends and returns of cap-
ital to shareholders are Glaston’s most
important obligations, as are the means
to create economic value added.
In 2021, Glaston Group’s net sales
totaled EUR 182.7 (170.1) million, of
which service operations accounted
for 36.5%. Comparable EBITA was EUR
11.1 million.
Responsible business
2021 2020 2019
Value added generated
Customers Net sales 182.7 170.1 181.0
Value added distributed
Suppliers Purchased goods, materials and services 116.1 94.8 130.9
Employees Salaries, bonuses and social expenses 58.3 53.6 51.4
Financiers Financial expenses 2.0 2.0 2.7
Owners Dividend/return of capital 2.5 1.7 0.0
Public sector Taxes 0.8 1.4 0.9
Business development R&D, investments 6.5 5.8 6.4
Value added generated and distributed (EUR million)
In financial year 2021, Glaston
acquired materials, products and
services totaling EUR 116.1 million and
paid income taxes of EUR 1.0 million.
Salaries and bonuses paid to person-
nel totaled EUR 48.6 million and pen-
sion expenses EUR 3.6 million. Glaston
had an average of 731 employees in
2021. The company’s investments in
tangible and intangible assets totaled
EUR 5.2 million.
Glaston Annual Review 2021 26
Glaston 2021
Sustainability
Governance
Financial review
Responsible
sourcing
Suppliers
• Supplier requirements, asses-
ments and audit
• Human rights and workplace
safety within the supply chain
• Anti-corruption in supply chain
and sourcing
• Environmental matters in the
supply chain
Glaston 2021
Sustainability
Governance
Financial review
Responsible sourcing
Suppliers of goods and services play
an important role in Glaston’s value
chain. Most of Glaston’s approximately
2,300 active subcontractors operate in
Europe, where the company’s largest
assembly and production units are
located. Glaston’s factories in Finland,
Switzerland and China assemble
machines, while its factory in Ger-
many manufactures machines.
Of Glaston’s purchases, approx-
imately 85% 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.
One of Glaston’s strategic cor-
nerstone initiatives is Master global
sourcing and manufacturing, the
objective of which is to improve opera-
tional efficiency through more har-
monized sourcing and manufacturing
processes. In this work, an important
element is responsible sourcing, which
includes, among other things, sup-
plier requirements and audits as well
Fair and honest business
as implementation of human rights
and occupational safety. In addition,
anti-corruption in the supply chain and
sourcing is systematically developed.
Glaston is committed to respon-
sible procurement practices and to
combating bribery and corruption. In
its Code of Conduct, Glaston under-
takes to promote fair competition,
act fairly towards its suppliers, ser-
vice providers and subcontractors,
and respect human rights in all of its
activities.
Glaston has, in addition, a sepa-
rate code of conduct for its suppliers
(Glaston Supplier Code of Conduct),
to which suppliers will be required
to commit in the future. The Glaston
Supplier Code of Conduct is pub-
lished in Finnish, English, German and
Chinese. The company’s goal is for all
present and new suppliers to commit
to Glaston’s Code of Conduct, and the
fulfillment of this goal will be reported
as of 2022.
Glaston selects its suppliers carefully,
and seeks long-term, good relation-
ships 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 products.
In Europe, Glaston accepts as its
suppliers only companies that are not
subject to sanctions of any kind and
have not committed any regulatory
offences. Glaston’s quality and pur-
chasing organizations audit the most
significant suppliers regularly in order
to monitor the safety and quality of
supplied parts and products. In 2021,
21 suppliers were audited (54 in 2020).
All new suppliers go through an audit
process before being approved. In
addition, visits are made to suppliers,
if necessary. Due to the coronavirus
situation, physical audits could not be
carried out as planned.
Fair business
The Group’s Anti-bribery and anti-cor-
ruption policy unequivocally prohibits
the payment and receipt of bribes. The
policy aims to ensure that the compa-
ny's business is conducted honestly,
in accordance with ethical standards
and 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.
Glaston regularly arranges training
for its personnel on its Code of Con-
duct and fair business issues. In addi-
tion, the training materials are always
available on the company’s intranet.
Glaston Annual Review 2021 28
Glaston 2021
Sustainability
Governance
Financial review
Responsible
partner
Customer
• User experience and customer
satisfaction
Products & Services
• Machine qulity, reliability and
longevity, life-cycle management
• Machine safety and advising
customers in operation of
machines
• Digitalization and Automation
• Data safety and security
• Energy and material efficiency
targeting circular economy
• End product quality, safety and
recyclability
Glaston 2021
Sustainability
Governance
Financial review
At the heart of Glaston’s strategy and
values is success with its customers.
By creating more customer-oriented
operating practices, the company
adds customer value and continually
improves the customer experience.
One of Glaston’s strategic cor-
nerstone initiatives is Innovate with
customers to win, which focuses on
seamless integration of customer
understanding with joint and faster
innovation 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. Glass
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 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’
Market’s best customer experience
recommendation rate (Net Promoter
Score, NPS) is above 40 by 2025. NPS
is already being measured in part of
the Group, and during 2022 the meas-
urement of customers’ recommen-
dation rate will be expanded to a joint
survey of Glaston as a whole.
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
have fairly long operating lives. The
machines are designed to withstand
constant use at high utilization rates.
Glaston’s production and assembly
processes and installation methods
are designed to promote product reli-
ability as well as the safety of installers
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
>40
Target: Net
Promoter Score
Glaston Annual Review 2021 30
Glaston 2021
Sustainability
Governance
Financial review
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.
Preventive maintenance extends
the useful life of machines, while
planned service intervals ensure
production quality and efficiency.
Connecting machines to the Glas-
ton Insight cloud service enables the
customer to monitor and report on
production in real time, and provides
customer support in the event of dis-
ruptions with no delays.
As a result of the increased role of
various cloud services and IoT, the
importance of information security
and protection for companies has
grown significantly. The impact on
business of potential data breaches
has been recognized and Glaston
pays special attention to managing
information security risks, with regard
to both the company’s own and its
customers’ data. Information secu-
rity practices and responsibilities
are guided by Glaston’s information
security policy, which will be updated
during 2022. Information security is
regularly monitored and audited, and
the company has a SOC (Security
Operations Center) service, which
enables continuous network monitor-
ing. In 2021, no significant information
security incidents were reported.
Glaston’s partners and subcontrac-
tors are also required to adhere to
the company's information security
guidelines.
Developer of demanding products
Glaston is the frontrunner in its field,
and is known in the glass industry for
its high quality. The company’s posi-
tion is particularly strong in developing
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.
In 2021, Glaston continued to invest
in product development in close
cooperation with its customers. At the
forefront of product development are
projects and innovations related to
increasing automation that facilitate
the transition towards fully automated
glass processing. In addition to effi-
ciency and reliability, consumption of
energy and materials will be optimized
and wastage reduced.
Glaston Annual Review 2021 31
Glaston 2021
Sustainability
Governance
Financial review
Responsible
member of
society
Sustainable tomorrow
• Indirect impacts on energy
efficient cities and societies
• Indirect energy and emissions
reductions
• Indirect material reductions
• Sustainable end-product
applications
• Development of the industry,
research co-operation
• Contributing to the decarboniza-
tion of societies
Glaston 2021
Sustainability
Governance
Financial review
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
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 mem-
ber, authorized by the Finnish national
working group, in glass industry com-
mittees of CEN (European Committee
for Standardization) and ISO’s (Inter-
Technology leader, developing the glass industry
national Organization for Standardiza-
tion) working groups preparing safety
glass (tempered and laminated glass)
standards. Via these, we are able to
influence the creation of industry
standards and communicate through
their 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
Finland, the University of Tampere,
Business Finland, the Fraunhofer
Institutes in Germany, and universi-
ties in Switzerland. The company also
actively offers summer, graduate the-
sis and trainee job positions to talent
of the future. In Germany, the com-
pany has an apprenticeship program.
Glaston conducts development
and engineering projects in new glass
technologies. Companies operating
in this area are typically frontrun-
ners in their field, which means that
requirements for new glass technol-
ogy and its development and appli-
cation in practice are very high.
The Glass Performance Days
(GDP) conferences, organized by
Glaston, bring together all of the
various stakeholders in the glass
processing chain, and they are
among the glass industry’s most
prestigious events. The conferences
aim to disseminate the latest infor-
mation among industry actors and
to promote the development of new
areas of application and technolog-
ical features. The GPD conferences
have been organized since 1992 at
two-year intervals, and over the years
they have attracted more than 16,000
glass industry professionals.
In 2017, Glaston introduced the
Step Change concept, which is part
of the GPD conferences held in Fin-
land. This event has quickly become
a meeting place for startup compa-
nies and the flat glass industry. The
goal of the Step Change program is
to introduce and bring together new
technologies, research teams and
startups to develop the entire glass
industry. The event has succeeded in
showcasing new innovative ideas that
can be widely utilized throughout the
glass value chain.
Glaston Annual Review 2021 33
Glaston 2021
Sustainability
Governance
Financial review
Ahlström Collective Impact involves
collaboration between Ahlström net-
work companies and UNICEF Finland,
enabling network companies to join
forces to improve the lives of children
worldwide.
The purpose of the joint initiative is
to facilitate investments that support
the realization of the United Nations’
Sustainable Development Goals
(SDGs). For 2021, the goals selected as
priorities were: 4. Quality education, 5.
Gender equality and 17. Partnerships.
To support the quality education
goal, the ACI network of companies
made a EUR 600,000 investment in
Together we
build the
future
AHLSTRÖM COLLECTIVE IMPACT
Glaston has joined Ahlström
Collective Impact (ACI), a joint
responsibility initiative designed
for investments in selected UN
sustainable development projects.
©UNICEF/UN0325666/Ralaivita
UNICEF's Global Education Program.
Disruptions caused by the coronavi-
rus pandemic have exacerbated the
learning crisis and reduced access to
quality education for children. To safe-
guard the future of children, we need
to secure their education.
For Glaston, the ACI initiative and
collaboration is an innovative way to
contribute to a better tomorrow for
future generations. By joining forces
with the Ahlström network compa-
nies, we can really make a difference.
In addition to Glaston. the
ACI network consists of Ahl-
strom-Munksjö, Ahlström Capi-
tal, Antti Ahlström Perilliset, Eva
Ahlström Foundation, Walter
Ahlström Foundation, Enics,
Suominen and Destia.
Glaston Annual Review 2021 34
Glaston 2021
Sustainability
Governance
Financial review
Governance
Glaston 2021
Sustainability
Governance
Financial review
Glaston
Heat
Treatment
Glaston
Automotive &
Display
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.
This statement has been approved
by the Company’s Board of Directors
(also the “Board”). The Corporate
Governance Statement is issued as
a separate report and is published
Corporate Governance Statement 2021
together with the financial state-
ments, the Report of the Board of
Directors and the Remuneration
Report on the Company’s website
at: https://glaston.net/governance/.
The information is also included in the
Annual Review 2021.
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 a 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
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-
man and a Deputy Chairman to serve
for one year at a time. The Board of
Directors has a quorum if more than
half of its members 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
GENERAL MEETING OF SHAREHOLDERS
Compensation Committee
Audit Committee
CEO
EXECUTIVE MANAGEMENT GROUP
Administration Group functions
Shareholders
Shareholders'
Nomination Board
Internal control
Risk Management
Financial Reporting
Governance Model 31 December 2021
BOARD OF DIRECTORS
Auditor
Glaston
Insulating
Glass
Glaston Annual Review 2021 36
Glaston 2021
Sustainability
Governance
Financial review
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 benefits.
In addition, the Chairman of the Board
approves the salary and other benefits
of the Executive Management Group.
The Board approves the Executive
Management Group’s charter.
The Board of Directors also decides
on far-reaching and fundamentally
important issues affecting the Group.
Such issues are the Group’s strategy,
approving the Group’s action plans
and monitoring their implementa-
tion, monitoring the Group’s financial
development, acquisitions and the
Group’s operating structure, signif-
icant 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 Directors
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 meetings there.
The Board of Directors may also, if
necessary, hold video and telephone
conferences. The Board of Direc-
tors meets according to a timetable
agreed in advance, generally 7–10
times per year and additionally, if
necessary. The Company’s President
& CEO and Chief Financial Officer
generally attend the meetings of the
Board. The Company’s General Coun-
sel acts as Secretary to the Board. If
necessary, such as in connection 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 at least two meetings (either
meeting of the Board of Directors or
Audit Committee) per year.
Board of Directors in 2021
At the Annual General Meeting, held
on 13 April 2021, the Members of the
Board of Directors Veli-Matti Rein-
ikkala, Sebastian Bondestam, Antti
Kaunonen, Sarlotta Narjus, Michael
Willome and Tero Telaranta were
re-elected, and Arja Talma was
elected as a new member of the
Board of Directors. The Board of Direc-
tors was elected for a term of office
ending at the closing of the next
Annual General Meeting.
In 2021, Veli-Matti Reinikkala has
served as Chairman of the Board,
and Sebastian Bondestam as Deputy
Chairman.
In 2021, 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, quality of the Board and
committee work and information
sharing between the Board and the
management. The results of the evalu-
ation were discussed and analyzed by
the Board and improvement proposals
were agreed based on these discus-
sions.
In 2021, key themes on the Board’s
agenda were supporting the new CEO
& President upon his start in the com-
pany, 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
Covid-19 pandemic continued to be
on the agenda.
Independence of Members of the Board
According to an independence
assessment performed by the Com-
pany’s Board of Directors, all of the
Members of the Board are independ-
ent of the Company. Member of the
Board Tero Telaranta is dependent on
a significant shareholder of the Com-
pany, Ahlstrom Capital B.V., whose
ownership was 26.39% at 31 Decem-
ber 2021. The Members of the Board
have no conflicts of interest between
the duties they have in the Company
and their private interests.
As the General Counsel Taina
Tirkkonen was on family leave, Iina-
Mari Supperi, Group Legal Counsel
(secondee) 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 2021.
Glaston Annual Review 2021 37
Glaston 2021
Sustainability
Governance
Financial review
Members of the Board of Directors 31 Dec 2021
Member of the Board Member since Independence Year of birth
Share ownership on 31
December 2021 Education Main occupation
Veli-Matti Reinikkala 2020, Chairman of the
Board
Independent of
the company and
significant shareholders
1957 500,000 shares eMBA, Non-
executive
Director
Board Professional
Sebastian
Bondestam
2018, Deputy Chairman Independent of
the company and
significant shareholders
1962 35,137 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 86,349 shares D.SC.
(Tech),
MBA
Cargotec Corporation,
President, Kalmar Automation
Solutions
Sarlotta Narjus 2016 Independent of the
company and of
significant shareholders
1966 no shares M.Sc.
Architecture
SAFA
SARC Architects Ltd, CEO
Tero Telaranta 2017 Independent of the
company, dependent
on a significant
shareholder
1971 10,720 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
Arja Talma
1)
2021 Independent of the
company and of
significant shareholders
1962 10,344 shares
Master of
Science
(Econ.), eMBA
Board Professional
Kai Mäenpää
2)
2017 Independent of the
company and of
significant shareholders
1960 15,000
3)
M.Sc.(Eng.) Valmet Technologies Oy, Vice
President, Energy Sales and
Services Operations, EMEA
Teuvo Salminen
2)
2010 Independent of the
company and of
significant shareholders
1954 306,057
3)
M.Sc.
(Econ.),
APA
Board Professional
1)
Member as of 13 April 2021
2)
Member until 13 April 2021
3)
on 31 December 2020
Glaston Annual Review 2021 38
Glaston 2021
Sustainability
Governance
Financial review
Board
meetings
Audit
Committee
Compensation
Committee
Veli-Matti Reinikkala 10/10 4/4
Sebastian Bondestam 10/10 6/6
Antti Kaunonen 10/10 6/6
Sarlotta Narjus 10/10 6/6
Arja Talma
*)
8/8 4/4
Tero Telaranta 10/10 5/5
Michael Willome 10/10 4/4
Kai Mäenpää
**)
2/2
Teuvo Salminen
**)
2/2 1/1
*
)
member as of 13 April 2021
**
)
member until 13 April 2021
Board and committee members meeting attendance in 2021
Meeting attendance of Members of the
Board 2021
In 2021, Glaston’s Board of Directors
convened ten times. The attendance
in the meetings is reported in the
table above.
Committees of the Board of Directors
Glaston’s Board of Directors has two
committees: Audit Committee and
Compensation 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 commit-
tees. 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 con-
solidated financial statements, evalu-
ates the independence of the statutory
audit firm and prepares a proposal for
the election and remuneration of the
auditor. Other duties include evaluat-
ing compliance with laws, regulations
and corporate practices, 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 Chairman of the Committee
reports the results to the Board of
Directors.
Audit Committee in 2021
Until the Annual General Meeting on
13 April, Teuvo Salminen served as
Chairman, and Tero Telaranta as a
member of the Audit Committee. The
members of the Audit Committee
were independent of the Company.
Tero Telaranta is dependent on a sig-
nificant shareholder of the Company.
As of 13 April 2021, Arja Talma served
as Chairman, and Veli-Matti Reinikkala
and Tero Telaranta as members of the
Audit Committee. The members of
the Audit Committee are independent
of the Company while Tero Telaranta
is dependent on a significant share-
holder of the Company.
In 2021, the Audit Committee met
five times. The meeting attendance is
reported in the table to the left.
In 2021, the committee focused
especially on the Group’s legal struc-
ture simplification and financing of
Chinese operations related thereto
besides its regular reviews of financial
reporting, audit and risk management.
Compensation Committee
The Compensation Committee
assists the Board of Directors by
preparing matters within the compe-
tence of the Board of Directors. The
Committee is not an independent
decision-making body; the Board of
Directors makes decisions collectively
within its competence. The Board of
Directors is responsible for the duties
it assigns to the Committee.
Glaston Annual Review 2021 39
Glaston 2021
Sustainability
Governance
Financial review
The Board of Directors specifies the
duties of the Compensation Commit-
tee in a charter confirmed by the Board
of Directors. Key duties of the Com-
mittee include preparing the remuner-
ation and other benefits of Glaston’s
President & CEO and other members
of the Executive Management Group,
preparing the appointment of the
President & CEO and other members
of the Executive Management Group
and their successors, and preparing
proposals for Glaston's short- and long-
term incentive schemes. In addition,
the Committee's duties include carry-
ing out all other duties assigned to the
Committee by the Board of Directors.
The Compensation Committee
convenes at the invitation of the
Chairman, as necessary and at least
twice a year. The Members of the
Board of Directors and the President
& CEO have the right to attend the
meetings of the Committee.
The Compensation Committee
regularly carries out self-evaluation
of its work, and the Chairman of the
Committee reports the results to the
Board of Directors.
Compensation Committee in 2021
Until the Annual General Meeting on 13
April, Sebastian Bondestam served as
Chairman, and Sarlotta Narjus and Antti
Kaunonen as members of the Com-
pensation Committee. After the Annual
General Meeting, Sebastian Bondes-
tam continued as Chairman, with Antti
Kaunonen, Sarlotta Narjus, and Michael
Willome as members of the committee.
In 2021, the Compensation Com-
mittee met six times. The meeting
attendance is reported in the table on
page 39. On the committee’s agenda
were the incentive program for top
management and the outcome of the
same, top management review and
remuneration as well as a talent review
follow-up. In addition, the committee
prepared the remuneration report for
the governing bodies.
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 share-
holders, who appoint one member
each. The Chairman of the Company’s
Board of Directors serves as an advisory
member of the Nomination Board.
The Company’s largest sharehold-
ers entitled to appoint members to
the Nomination Board is determined
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 Chairman 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 the
January preceding the Annual General
Meeting. Proposals for an Extraordinary
General Meeting shall be submitted to
the Company’s Board of Directors so
that they can be included 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 Chairman’s
vote shall be decisive. If the votes are
tied in the election of the Chairman,
the member candidate for Chairman
nominated by the shareholder who had
the largest number of shares when the
Nomination Board was established shall
be elected as Chairman.
A report on the activities of the
Nomination Board shall be presented at
the Annual General Meeting and pub-
lished on the Company’s website.
Shareholders’ Nomination Board 2021
Until 31 August 2021, the Sharehold-
ers’ Nomination Board comprised of
Lasse Heinonen (Chairman), 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
Glaston Annual Review 2021 40
Glaston 2021
Sustainability
Governance
Financial review
Mutual Pension Insurance Company,
and Esko Torsti, as the representative
nominated by lmarinen Mutual Pen-
sion Insurance Company.
In accordance with its charter, the
Nomination Board prepared its pro-
posal concerning the Board compo-
sition and remuneration to the AGM
2021. 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, Tero Telaranta and Michael
Willome be re-elected as Members
of the Board of Directors and Arja
Talma elected as a new member. The
Nomination Board proposed that the
remuneration of the Members of the
Board of Directors remain unchanged.
Based on ownership on 1 Septem-
ber 2021, 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 lmarinen Mutual Pension
Insurance Company. Veli-Matti Reinik-
kala, Chairman of the Glaston Corpo-
ration’s Board of Directors, served as an
advisory member of the Nomination
Board.
In its organizing meeting on 22 Sep-
tember 2021, the Nomination Board
elected Lasse Heinonen amongst its
members as the Chairman. The Board
met four times during 2021 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 pro-
posal concerning the Board composi-
tion and remuneration also to the AGM
2022. The proposal was disclosed on 15
December 2021 and according to the
proposal, the Nomination Board pro-
posed 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 Members
of the Board of Directors would be
increased to be as follows: Chairman
EUR 70,000 ( 60,000), Vice Chairman
EUR 43,000 (40,000) and Members
EUR 33,000 (30,000).
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 Chairman of the Company’s Board
of Directors appoints, on the proposal
of the President & CEO, the Members
of the Executive Management Group
and confirms their remuneration and
other contractual terms. The Com-
pany’s President & CEO acts as the
Chairman of the Executive Manage-
ment Group. The Executive Manage-
ment Group handles the Group’s and
business areas’ strategy issues, capital
expenditure, financial development,
product policy, Group structure and
control systems, and supervises the
Company’s operations.
The Members of the Executive Man-
agement Group report to the President
& CEO and assist him in implementing
the Company’s strategy, operational
planning and management, and in
reporting the development of business
operations. The Executive Manage-
ment Group meets under the direction
of the President & CEO.
In 2021, the composition of the
Executive Management Group was the
following: President and CEO Anders
Dahlblom, CSO and Deputy CEO Sasu
Koivumäki, CFO Päivi Lindqvist, SVP
Glaston Heat Treatment Technologies
Miika Äppelqvist, SVP Glaston Insulating
Glass Technologies Dietmar Walz, SVP
Glaston Automotive and Display Tech-
nologies Robert Prange, SVP Services
Artturi Mäki, SVP People & Culture Han-
nele Anonen (as of 1 August 2021) and
General Counsel Taina Tirkkonen (on
family leave).
The Executive Management Group
convened 15 times in 2021.
Glaston Annual Review 2021 41
Glaston 2021
Sustainability
Governance
Financial review
Executive Management Group 31 December 2021
Area of responsibility Member since Year of birth Education
Share ownership
on 31.12.2021
*)
Anders Dahlblom President & CEO Employed by the company since 1 January
2021
1974 M.Sc. (Econ.) 420,000 shares
Muu johtoryhmä
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 December 2020
1981 MSc, Industrial
engineering and
management
6,815 shares
Dietmar Walz SVP Glaston Insulating Glass
Technologies
Employed by Glaston since April 2019 and
Member of the Executive Management
Group since May 2019. Employed by
Bystronic Lenhardt GmbH since 2014
1960 M.Sc.(B.Admin) No shares
Robert Prange SVP, Glaston Automotive and Display
Technologies
Member of the Executive Management Group
since 2020. Joined Bystronic glass in 2011
1970 Dr. Ing. 30,000 shares
Taina Tirkkonen General Counsel Employed by the company since 2011 and
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 1
August 2021
1972 eMBA No shares
*)
Share ownership includes also the ownership of Glaston Corporation shares in entities controlled by the person in question.
Glaston Annual Review 2021 42
Glaston 2021
Sustainability
Governance
Financial review
Remuneration of the CEO & Presi-
dent and the Executive Management
Group is described in the Remunera-
tion Report 2021 and on the compa-
ny’s website.
At the end of 2021, 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),
Gramm He (General Manager, China),
Marco Stehr (SVP Sales and service,
EMEA), Pia Posio (VP Marketing, Com-
munications and IR), Jens Mayr (SVP
Business Control), Iina-Mari Supperi
(Group Legal Counsel, secondee),
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 six
times in 2021.
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 legis-
lation and other regulations are com-
plied with. The Group has specified
for the main areas of its operations
Group-wide principles that form the
basis for internal control.
The Group’s internal control 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,
systematic and appropriate devel-
opment and implementation of the
risk management process, with the
objective being the comprehensive
recognition and appropriate manage-
ment of risks. Glaston’s risk manage-
ment focuses on the management of
risks relating to business opportunities
and of risks that threaten the achieve-
ment of Group objectives in a chang-
ing operating environment. From the
perspective of risk management,
the Company has divided risks into
four different groups: strategic risks,
operational risks, financial 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 com-
pany.
Glaston's risk management policy
includes guidelines relating to the
Group's risk management. Risk man-
agement policy also specifies the risk
Glaston Annual Review 2021 43
Glaston 2021
Sustainability
Governance
Financial review
management processes and respon-
sibilities. Glaston's risk management
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
can make decisions on the level of risk
that the Company’s business func-
tions are possibly 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 meas-
ures. In addition, the function consoli-
dates segment and Group-level risks.
The Group Legal function reports on
risk management issues to the Presi-
dent & CEO and the Executive Manage-
ment Group and assesses in collab-
oration with them any changes in the
probabilities or the impacts of identified
risks and in the level of their manage-
ment. 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.
With the aid of the risk manage-
ment process, risks are system-
atically identified and assessed in
each segment and at Group level. In
addition, at each level measures are
specified which, when implemented,
will achieve an acceptable level of risk.
Risks are consolidated at Group level.
Action plans are prepared at each
level of operations to ensure risks
remain at an acceptable level.
The Group's risks are covered in
more detail in the Report of the Board
of Directors on page 72. The manage-
ment and organization of the Group’s
financial risks are presented in more
detail in Note 3 of the consolidated
financial statements on page 99.
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 Registration
Office. The Annual General Meet-
ing 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 parent company’s govern-
ance, and to give reasonable assur-
ance that the financial statements as
a whole are free from material mis-
statement. The Company’s Auditor
presents the audit report required by
law to the Company’s shareholders in
connection with the annual financial
statements and reports regularly to the
Board of Directors. The Auditor, in addi-
tion to fulfilling general competency
requirements, must also comply with
certain legal independence require-
ments guaranteeing the execution of
an independent and reliable audit.
Audit 2021
At the 2021 Annual General Meeting,
the accounting firm KPMG Oy Ab was
re-elected as the Company’s Auditor.
The auditor with principal respon-
sibility was Lotta Nurminen APA.
Auditing units representing KPMG
have served as the auditors of the
Company's subsidiaries in most oper-
ating countries. In 2021, the Group's
Glaston Annual Review 2021 44
Glaston 2021
Sustainability
Governance
Financial review
auditing costs totaled EUR 338 thou-
sand, of which KPMG received EUR
321 thousand. KPMG Oy Ab's auditing
expenses for the audit for financial
year 2021 totaled EUR 321 thousand. In
addition, auditing units belonging to
KPMG have provided other advice to
Group companies to a total value of
EUR 149 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 busi-
ness and support units. 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 transactions are reported reg-
ularly 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 dis-
charging managerial responsibili-
ties, persons serving in certain key
positions and persons participating
in the preparation of financial reports
must not trade in the Company’s
financial instruments during the
30-day period before the publica-
tion of interim reports and financial
statement releases. With respect to
project-specific insiders, trading in
the Company’s financial instruments
is prohibited until the cancellation 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 Com-
pany’s Communications Department
is responsible for maintaining the list of
insiders and for overseeing the restric-
tion on trading and duty to declare.
Glaston Annual Review 2021 45
Glaston 2021
Sustainability
Governance
Financial review
Remuneration report 2021
Introduction
This Remuneration Report for the
financial year 2021 (the “Remuneration
Report”) describes the remuneration
for Governing Bodies of Glaston Cor-
poration (“Glaston” or the “Company”)
as required by the Finnish Securities
Market Act, the Finnish Companies
Act and the Finnish Corporate Gov-
ernance Code 2020 (the “CG Code”)
issued by the Securities Markets Asso-
ciation. In addition to aforementioned,
Glaston complies with other legal
provisions concerning listed compa-
nies, Glaston’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 2021 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
2021. Further, no clawbacks of the
remuneration have taken place during
the said financial year 2021.
Development of remuneration in
relation to financial development
of 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 2017-2021.
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.
Glaston is a global company and the
remuneration levels vary significantly
in markets where Glaston operates.
Nevertheless, it is considered most
transparent to compare the remuner-
ation of the governing bodies with the
remuneration of employees globally
on group level. Thus, the figures on
average employee remuneration are
based on data for all Glaston employ-
ees 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 trans-
action the total number of Glaston’s
employees grew by 121% and totalled
790 on 31 December 2019 (31 Decem-
ber 2018: 357) while net sales in Janu-
ary–December 2019 totalled EUR 181.0
million (2018: EUR 101.1 million).
As reported in the remuneration
report for the financial year 2020, due
to the COVID-19 pandemic, Glaston
took several proactive actions in 2020.
Actions affecting employee remuner-
Glaston Annual Review 2021 46
Glaston 2021
Sustainability
Governance
Financial review
ation included temporarily reducing
labour costs by initiating 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 temporarily
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
EUR 2017 2018 2019 2020 2021
Annual remuneration of
the Board 210,200 237,425 283,550 331,300 353,700
Annual remuneration of
the President and CEO 412,719 446,601 467,466 163,598
1
330,622
2
Annual remuneration of
the Deputy CEO 199,611 198,958 305,777
3
108,645
4
337,574
5
Annual remuneration
of the Acting President
and CEO - - - 254,558
6
-
Average salary
development
7
47,100 49,600 61,500 60,400 66,500
EUR 1,000 2017 2018 2019
8
2020 2021
Net sales 109,665 101,139 181,018 170,067 182,662
Comparable operating
result (EBIT) 4,994 5,663 5,941 3,225 6,569
Comparable EBITA
9
- 7,556 9,746 7,742 11,098
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
Remuneration from the period 1 June to 31 December 2020. Excluding reimbursement of costs
and expenses paid directly to third parties based on the expatriate agreement.
7
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.
Remuneration development
Key financial metrics
8
Bystronic glass consolidated as of 1 April 2019.
9
Glaston has reported comparable EBITA as of 1 January 2018.
* Deputy CEO remuneration for 2019 includes also remuneration paid to
Sasu Koivumäki as Acting CEO and President
actions did not concern the President
and CEO and the Deputy CEO.
Due to the nature of the Board
duties and responsibilities, the remu-
neration of the Board includes fixed
remuneration only. The effect of
Board remuneration
CEO remuneration
Deputy CEO remuneration*
Employee remuneration
EBIT
EBITA
Bystronic glass transaction on Glas-
ton and its operations has also been
reflected in the remuneration level of
the Board of Directors.
2017
3,000
2,500
0
500
1,000
1,500
2,000
2018 2019 2020 2021
Remuneration and financial developement
Glaston Annual Review 2021 47
Glaston 2021
Sustainability
Governance
Financial review
Remuneration of the Board of
Directors
The 2021 Annual General Meeting
resolved that an annual fee of EUR
60,000 shall be paid to the Chairman
of the Board, EUR 40,000 to the Dep-
uty Chairman and EUR 30,000 to other
Members of the Board.
Further, the 2021 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 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-
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 2021 of the
Company is published.
A meeting fee of EUR 800 shall be
paid to the Chairman for meetings in
Chairman’s home country and EUR
1 ,500 for meetings elsewhere, and EUR
500 shall be paid to the other Members
of the Board for meetings held in their
home country and EUR 1,000 for meet-
ings 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 normal practice.
Furthermore, the members of the
Audit and Compensation Committees
shall be paid a meeting fee of EUR
500 for each meeting that the mem-
bers have attended. In addition to the
meeting fee, the Chairman of the Audit
Committee shall be paid an annual fee
of EUR 10,000 and the Chairman of the
Compensation 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
2021 were in compliance with the
Remuneration Policy.
In the financial year 2021, the follow-
ing fees were paid to the members of
the Board: an annual fee and meeting
fees including both Board and com-
mittee related remuneration. As set
out on page 49, four members of the
Board chose to receive the annual
fixed remuneration partly in company
shares.
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 2021.
Sasu Koivumäki was already in 2019
relocated to Germany pursuant to the
separate expatriate agreement, and
he worked as an expatriate in Germany
until 31 July 2021. Sasu Koivumäki was
further relocated in Singapore pursuant
to the subsequent expatriate arrange-
ment and has worked as an expatriate
in Singapore as of November 2021.
In 2021, the President and CEO
Anders Dahlblom was paid the total
remuneration of EUR 330,622. The
relative proportion of the fixed pay
was 100 % and variable pay 0%. The
different components are described
in more detail in the chart to the right.
In 2021, Deputy CEO Sasu Koivumäki
was paid the total remuneration of
EUR 337 574. The relative proportion of
the fixed pay was 91,1 % and variable
pay 8,9 %. The different components
are described in more detail in the
chart to the right.
Further, total remuneration paid
to Sasu Koivumäki in 2021 is exclud-
ing reimbursement of costs and
expenses in the amount of EUR
60,000 paid directly to third parties
based on the expatriate agree-
ment(s).
Actualised remuneration of the Presi-
dent & CEO, and Deputy CEO for 2021
Fixed pay .................... 89,5%
Pension ......................... 10,5%
CEO & President Anders Dahlblom
Fixed pay .....................84,7%
Benefits ...........................7,5%
Pension ........................... 7,8%
Deputy CEO Sasu Koivumäki
Glaston Annual Review 2021 48
Glaston 2021
Sustainability
Governance
Financial review
Board Audit Committee Compensation Committee Annual fee (EUR) Meeting fees (EUR)
Remuneration in total (EUR)
Veli-Matti Reinikkala,
Chairman of the Board
Member 60,000 15,400 75,400
Sebastian Bondestam,
Deputy Chairman of the Board
Chairman 47,500
Of which EUR 16,000
paid in Glaston shares
8,000 55,500
Antti Kaunonen Member 30,000
Of which EUR 12,000
paid in Glaston shares
8,000 38,000
Kai Mäenpää
10
15,000 1,000 16,000
Sarlotta Narjus Member 30,000 8,000 38,000
Teuvo Salminen
11
Chairman
12
17,500 1,800 19,300
Arja Talma
13
Chairman
14
30,000
Of which EUR 12,000
paid in Glaston shares
6,000 36,000
Tero Telaranta Member 30,000
Of which EUR 12,000
paid in Glaston shares
7,500 37,500
Michael Willome Member 30,000 8,000 38,000
Tot al 290,000 63,700 353,700
10
Member of the Board until 13 April 2021.
11
Member of the Board until 13 April 2021.
12
Until 13 April 2021.
13
Member of the Board since 13 April 2021.
14
Since 13 April 2021.
Glaston Annual Review 2021 49
Glaston 2021
Sustainability
Governance
Financial review
Performance Actualisation 2021 (STI and LTI)
President and CEO and Deputy CEO participated in the short-term incentive
plan in 2021.
The short term incentive (STI) opportunity of the President and CEO was in
2021 tied to the following metrics:
The short-term incentive (STI) opportunity of the Deputy CEO was in 2021 tied
to the following metrics:
KPI Weight Achievement
Glaston EBITA 70% Above target
Glaston Order Intake 20% Above target (max)
Group Net Working Capital 10% Above target (max)
KPI Weight Achievement
Glaston EBITA 40% Above target
Glaston Order Intake 60% Above target (max)
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
accumulating the Company’s shares.
The President and CEO and the
Deputy CEO participate(d) in the
Performance Share Plan 2019-2023
which comprises of three (3) per-
formance periods: calendar years
2019-2021, calendar years 2020–2022
and calendar years 2021–2023. How-
ever, as the President and CEO Anders
Dahlblom joined the Company first in
2021, he did not participate in the two
first performance periods 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 partic-
ipant 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 peri-
ods under the plan objectives were
set regarding Group Cumulative EBITA
and Average Net Gearing as follows:
KPI Weight
Group Cumulative EBITA 80%
Average Net Gearing 20%
Total 100%
The maximum opportunity for the two
first performance periods was
40,000 shares for the Deputy CEO.
The achievement (%) for the perfor-
mance period LTI 2019-2021 is approx-
imately 11,8%.
For the third performance period
under the plan (LTI2021-2023) objec-
tives were set regarding Group as
follows:
KPI Weight
Group Cumulative EBITA 80%
Service Net Sales 20%
Total 100%
Glaston Annual Review 2021 50
Glaston 2021
Sustainability
Governance
Financial review
Element Remuneration Description
President and CEO Deputy CEO
FIXED
Base salary and
benefits
EUR 330,622
Including taxable fringe benefits: mobile phone,
company car, lunch benefit
EUR 337,574
Including taxable fringe benefits: company car
(Germany and Finland) / travel allowance (Singapore),
mobile phone
VARIABLE
Short-term incentive
(STI)
Performance year 2020 (paid in 2021): N/A. President
and CEO joined the Company on 1 January 2021 and
thus did not participate in STI 2020.
Performance year 2021 (paid in 2022): EUR 233,280.
The maximum amount of the President & CEO’s annual
bonus is 80% of annual salary.
Performance year 2020 (paid in 2021): did not
participate in STI 2020.
Performance year 2021 (paid in 2022): EUR 99,691.
The maximum amount of the Deputy CEO’s annual
bonus is 40% of annual salary.
VARIABLE
Other performance
bonus
- Performance year 2020 (paid in 2021): EUR 30,000
The maximum opportunity was EUR 50,000
payable in 2021 for H2 achievements in 2020 (sales
and organisational targets as the Acting CEO for
H2/2020).
Summary of remuneration to the President and CEO and Deputy CEOThe maximum oppor-
tunity for the third perfor-
mance period is 128,000
shares for the President and
CEO, and 56,000 shares for
the Deputy CEO.
In addition to the Per-
formance Share Plan 2019-
2023, the former long-term
incentive plan linked to the
development of share price
of the Company was still
valid with respect to the last
period (LTI 2018-2020). For
the period 2018-2020 (LTI
2018-2020) minimum share
price level for payout was
EUR 1.91 and maximum EUR
3.56, and any rewards would
have been payable in 2021.
Minimum target share prices
were not achieved for LTI
2018-2020, and therefore no
payments were made based
on the former long-term
incentive plan in the financial
year 2021.
Glaston Annual Review 2021 51
Glaston 2021
Sustainability
Governance
Financial review
Element Remuneration Description
President and CEO Deputy CEO
VARIABLE
Long-term incentive
(LTI) plan 2017-2019
Finalized plans: N/A
President and CEO joined the Company on 1 January
2021 and thus did not participate in LTI 2017-2019
Finalized plans: LTI 2018-2020 (paid in 2021): 0
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 1 January 2021
and thus did not participate in LTI 2019-2021.
Ongoing plans:
LTI 2020-2022: N/A
President and CEO joined the Company 1 January 2021
and thus did not participate in LTI 2019-2021.
The maximum reward for the ongoing LTI 2021-2023 is
128,000 shares, including also the portion to be paid in
cash.
Finalized plans:
The maximum reward for the LTI 2019-2021 is 40,000
shares, including also the portion to be paid in cash.
Ongoing plans:
The maximum reward for the ongoing LTI 2020-2022 is
40,000 shares, including also the portion to be paid in
cash.
The maximum reward for the ongoing LTI 2021-2023 is
56,000 shares, including also the portion to be paid in
cash.
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 38,880 in 2021.
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
30,960 in 2021.
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 is entitled to receive 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 2021 52
Glaston 2021
Sustainability
Governance
Financial review
Financial Review
Glaston 2021
Sustainability
Governance
Financial review
The Board of Directors’ Review 2021
As of 1 January 2021, the company has
three reporting segments: Glaston
Heat Treatment, Glaston Insulating
Glass and Glaston Automotive &
Display. The services business is
included in the reporting segments.
Machine and Services sales, order
intake and order book are also
reported separately as additional
product area information. On 18 March
2021, the company published com-
parative information according to the
new structure. The figures in brackets
refer to the comparison period, i.e. the
corresponding period in the previous
year, unless otherwise stated.
Review period in brief
In 2021, Glaston’s market saw a strong
recovery and customer business
activity improved in most regions and
markets. The strength of the com-
pany’s product offering, particularly
in the architectural segment, was
clearly visible, and Glaston entered
into several customer agreements
during the year, including for both
heat treatment and insulating glass
equipment. Cross-selling is strategi-
cally and commercially important and
will further strengthen the company’s
market position in the future.
Glaston’s Board of Directors
approved an updated strategy for
2021–2025 in August 2021. The key
objectives of the updated strategy are
significantly improving organic growth
and profitability, based on Glaston’s
own strategic initiatives and antici-
pated market growth. Glaston’s core
technologies and lifecycle solutions
remain at the heart of the strategy.
The updated strategy defines sustain-
able business as a strategic priority.
In 2021, supply chain disruptions
were a growing concern, leading to
longer delivery times for several com-
ponents as well as increased raw mate-
rial prices, freight costs, and logistics
availability issues. In order to avoid sig-
nificant delivery delays, the company
took proactive measures to ensure the
availability of key components.
The COVID-19 pandemic remained
a concern, although its impact was
smaller than in 2020. Thanks to pre-
ventive measures introduced at an
early stage of the pandemic, such as
strict safety guidelines and a rec-
ommendation for remote working,
Glaston was able to maintain its pro-
duction operations. Changing travel
restrictions in different countries and
restrictions on customers’ factory vis-
its continued to adversely affect main-
tenance and service operations.
In August 2020, Anders Dahlblom
was appointed as the company’s new
President & CEO, and he assumed his
position on 1 January 2021.
Operating environment
Glaston Corporation is a glass pro-
cessing industry technologies and
services frontrunner. Glass processed
using Glaston’s processing machines
is supplied to the architectural glass,
automotive glass, solar energy, and
display industries. Most of the glass
produced using the company’s tech-
nology is supplied to the construc-
tion industry (measured by volume).
Glaston operates in a global market
and the company’s business is largely
linked to trends in global investment
demand and therefore to demand for
glass and glass processors’ capacity
utilization rates which, in turn, impact
investment needs and the demand
for services and spare parts.
Architectural glass
In 2021, good progress was noted for
the architectural market. Demand for
Heat Treatment equipment was high,
which particularly drove demand
for flat tempering lines, as well as
laminating lines. Very strong market
recovery was also observed for Heat
Treatment upgrades in all regions.
For Insulating Glass equipment,
high demand for the Thermoplastic
Spacer (TPS®) line continued, as well
as for special lines, e.g. fire-resist-
ant glass and glass arrissing. For the
services business overall, the market
was good. However, the supply chain
disturbances created challenges for
the spare parts business and pan-
demic-related travel restrictions
affected field service and spare parts
operations.
Glaston Annual Review 2021 54
Glaston 2021
Sustainability
Governance
Financial review
In Glaston’s main market area, the
EMEA region, increasing market activ-
ity was noted throughout the year. The
positive development in the archi-
tectural market boosted demand for
advanced Heat Treatment and Insu-
lating Glass technologies equipment.
Demand was further supported by
subsidy programs that were launched
in a number of European countries.
Driven by the residential glass sec-
tor, market recovery in North America
continued at a good level throughout
the year. The increasing market activ-
ity boosted demand, especially for the
Thermoplastic Spacer (TPS
®
) technol-
ogy, as well as for the flat tempering
and laminating lines. After a strong
first half of the year, the Services mar-
ket slowed down in the third quarter,
continuing into the fourth quarter.
In China, strong market recovery
was observed and customers showed
increasing interest in large-sized lines
and automation. The TPS® tech-
nology, as well as other high-end
Insulating
Glass lines, were in high
demand Elsewhere in the APAC
region, activity remained at a lower
level mainly due to coronavirus-re-
lated restrictions, although signs of
increased activity were noted in the
fourth quarter.
Automotive glass
After a slow first quarter of 2021, the
rest of the year showed a positive
development with increasing invest-
ment activity in the market for new
machinery.
During the year, Automotive pro-
duction faced difficulties due to sup-
ply chain shortages, particularly for
computer chips. This resulted in lower
activities for Glaston’s customers,
who are Tier 1 suppliers to automotive
OEMs. The general market sentiment
is still positive as development in the
automotive end market has a bet-
ter outlook with high end-customer
demand, which automotive produc-
tion is currently unable to fulfill.
Following the overall positive
market sentiment, increased invest-
ment activity in the market for new
machinery was noted as customers
recognized the need to invest in order
to fulfill future requirements. However,
Services activity was affected by the
supply chain shortages. In the display
market, automotive displays showed
increasing activity, similar to the auto-
motive market itself.
As of the second quarter, market
activity in China developed well and
good recovery was also noted for
the North American market. China is
more driven by the classic automotive
industry and display industry, while
North America is mainly driven by
special products such as recreational
vehicles (RV) 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 requirements.
In other regions, investment activity
remained subdued.
Glaston Annual Review 2021 55
Glaston 2021
Sustainability
Governance
Financial review
Orders received*
)
, EUR million 1–12/2021 1–12/2020
Heat Treatment 89.0 56.1
Insulating Glass 95.0 75.7
Automotive & Display 31.2 20.2
Segments, total 215.1 152.1
Unallocated and eliminations 1.1 1.4
Glaston Group, total 216.2 153.5
*)
6–9/2021 order intake for the Automotive and Display Technologies has been corrected down-
wards by EUR 1.4 million, also impacting segment and Group order intake and respective cumula-
tive figures for the Jan–June 2021 and Jan–Sep 2021 periods.
The order book stood at EUR 94.8 (63.9) million at the end of the year. The Heat
Treatment order book totaled EUR 45.6 (31.4) million, representing 48% of the
order book, Insulating Glass EUR 38.5 (26.1) million, or 41%, and Automotive &
Display EUR 10.7 (6.5) million, or 11% of the order book
Order book, EUR million 31.12.2021 31.12.2020
Heat Treatment 45.6 31.4
Insulating Glass 38.5 26.1
Automotive & Display 10.7 6.5
Segments total 94.8 63.9
Unallocated and eliminations 0.0 0.0
Glaston Group, total 94.8 63.9
Orders received and order book by product area
Orders received in January−December 2021 totaled EUR 216.2 (153.5) million. Of
the orders 28% were received for the Heat Treatment Technologies product area,
33% for the Insulating Glass Technologies product area, 8% for the Automotive &
Display product area and 31% for the Services product area.
Financial development of the group
Orders received and order book
Orders received in January–December 2021 amounted to EUR 216.2 (153.5) mil-
lion, up 41% compared to the corresponding period in 2020. Comparison figures
for the second and third quarters in the previous year were on a low level due to
COVID-19-related market uncertainty.
Orders received by product area*
)
,
EUR million 1–12/2021 1–12/2020
Heat Treatment Technologies 60.1 34.1
Insulating Glass Technologies 70.5 53.6
Automotive & Display Technologies 16.5 7.3
Services 68.0 57.1
Unallocated and eliminations 1.1 1.4
Glaston Group, total 216.2 153.5
*)
6–9/2021 order intake for the Automotive and Display Technologies has been corrected down-
wards by EUR 1.4 million, also impacting segment and Group order intake and respective cumula-
tive figures for the Jan–June 2021 and Jan–Sep 2021 periods.
Order book by product area, EUR million 31.12.2021 31.12.2020
Heat Treatment Technologies 39.3 26.6
Insulating Glass Technologies 38.0 26.1
Automotive & Display Technologies 10.2 6.5
Services 7.3 4.7
Unallocated and eliminations 0.0 0.0
Glaston Group, total 94.8 63.9
Net sales
January–December 2021 net sales totaled EUR 182.7 (170.1) million. Net sales in
the Heat Treatment segment increased by 21% and totaled EUR 74.7 (61.6) million.
Net sales in the Insulating Glass segment were on the same level as in the previ-
ous year: EUR 81.6 (81.9) million. A slight increase, +4%, was noted in the Automo-
tive & Display segment and net sales totaled EUR 25.6 (24.6) million.
Glaston Annual Review 2021 56
Glaston 2021
Sustainability
Governance
Financial review
Net sales, EUR million 1–12/2021 1–12/2020
Heat Treatment 74.7 61.6
Insulating Glass 81.6 81.9
Automotive & Display 25.6 24.6
Segments total 181.9 168.2
Unallocated and eliminations 0.8 1.9
Glaston Group total 182.7 170.1
Geographical distribution of net sales, EUR million 1–12/2021 1–12/2020
The Americas 55.4 44.7
EMEA 95.7 94.4
APAC 31.5 30.9
Glaston Group, total 182.7 170.1
Net sales by product area
January–December 2021 net sales in the Heat Treatment Technologies product
area increased by 20% and totaled EUR 48.0 (40.2) million. Net sales in the Insu-
lating Glass Technologies product area decreased by 4% and totaled EUR 58.1
(60.3) million. Net sales in the Automotive & Display Technologies product area
decreased by 8% and was EUR 11.5 (12.5) million. Net sales in the Services product
area increased 15% and was EUR 66.8 (58.1) million.
Net sales by product area, EUR million 1–12/2021 1–12/2020
Heat Treatment Technologies 48.0 40.2
Insulating Glass Technologies 58.1 60.3
Automotive & Display Technologies 11.5 12.5
Services 66.8 58.1
Unallocated and eliminations -1.7 -0.9
Glaston Group, total 182.7 170.1
Operating result and profitability
January–December 2021 comparable EBITA amounted to EUR 11.1 (7.7) million, i.e.
6.1 (4.6)% of net sales. In the full year, EBITA improved strongly in the Heat Treat-
ment segment and the Automotive & Display segment turned from loss to profit.
EBITA in the Insulating Glass segment declined. The comparable operating result
was EUR 6.6 (3.2) million, i.e. 3.6 (1.9)% of net sales. The Group’s operating result
was EUR 5.1 (-0.5) million. Items affecting comparability totaled EUR -1,5 (-3.8)
million. Financial income and expenses amounted to EUR -3.5 (-2.3) million. The
result before taxes was EUR 1.2 (-3.3) million. The result for the review period was
EUR 1.1 (-5.5) million.
Earnings per share were EUR 0.013 (-0.065) and comparable earnings per
share were EUR 0.060 (0.013). The impairment of the balance sheet items related
to the Heliotrope cooperation contributed to EBIT-included items affecting com-
parability by EUR -0.8 million, and financial items by EUR -1.6 million. The impair-
ment also negatively impacted the result before taxes, the result for the review
period, and both earnings per share and comparable earnings per share.
EUR million 1-12/2021 1-12/2020
Operating result 5.1 -0.5
Items affecting comparability
(1
1.5 3.8
Comparable EBIT 6.6 3.2
Operating result 5.1 -0.5
Amortization and purchase price allocation 4.5 4.5
EBITA 9.6 4.0
Items affecting comparability
(1
1.5 3.8
Comparable EBITA 11.1 7.7
% of net sales 6.1% 4.6%
(1
+ cost, - income
Glaston Annual Review 2021 57
Glaston 2021
Sustainability
Governance
Financial review
Financial development of the reporting segments
Heat Treatment reporting segment
Glaston’s Heat Treatment segment includes a wide and technologically
advanced range of heat treatment machines, maintenance, upgrade and
modernization services, as well as spare parts for glass flat tempering, bending,
bending tempering, and laminating. Glaston also offers digital services such as
glass processing machine remote monitoring and fault analysis services, and
consulting and engineering services for new areas of glass technology. The Heat
Treatment segment includes the Heat Treatment Technologies product area and
heat treatment machine services.
Heat Treatment segment's year in brief:
• Market recovery continued throughout the year with growing demand for Heat
Treatment equipment and Heat Treatment upgrades
• Orders received up 59% and healthy order backlog at EUR 45.6 million
• Net sales up 21% supported by stable order intake
Heat treatment segment key figures
MEUR 1-12/2021 1–12/2020
Orders received 89.0 56.1
Order book at end of period 45.6 31.4
Net sales 74.7 61.6
Comparable EBITA 3.4 2.0
Comparable EBITA, % 4.5% 3.2%
Comparable operating result (EBIT) 1.6 0.4
Comparable operating result (EBIT),% 2.1% 0.6%
Operating result (EBIT) 0.6 - 1.2
Operating result (EBIT), % 0.8% -2.0%
Net working capital -19.0 -13.0
Employees at end of period 283 293
Insulating Glass reporting segment
Glaston’s Insulating Glass segment provides high technology machines for the
manufacture of insulating glass, maintenance, upgrade and modernization ser-
vices, as well as spare parts. The Insulating Glass segment includes the Insulat-
ing Glass Technologies product area and insulating glass machine services.
Insulating Glass segment’s year in brief:
• Strong market activity resulting in very good order intake
• The launch of the new glass arising machine, MULTI’ARRISSER, raised much
attention and demand
• Good order backlog at EUR 38.5 million
Insulating glass segmentkey figures
EUR million 1-12/2021 1-12/2020
Orders received 95.0 75.7
Order book at end of period 38.5 26.1
Net sales 81.6 81.9
Comparable EBITA 6.5 7.3
Comparable EBITA, % 8.0% 8.9%
Comparable operating result (EBIT) 4.6 5.2
Comparable operating result (EBIT), % 5.6% 6.4%
Operating result (EBIT) 4.6 3.6
Operating result (EBIT), % 5.6% 4.4%
Net working capital -4.6 2.1
Employees at end of period 359 330
Glaston Annual Review 2021 58
Glaston 2021
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Financial review
Automotive & Display reporting segment
Glaston’s Automotive & Display segment provides glass processing machines
and related services to the automotive industry as well as the display industry.
The Automotive & Display segment includes the Automotive & Display Technolo-
gies product area and related machine services.
Automotive & Display segment’s year in brief:
• After a slow start to the year, demand in the Automotive market picked up in the
second quarter and the positive development culminated in the fourth quarter
• Increasing investment activity for new machines with order intake up 54%
• Significant profitability turnaround
Key figures,EUR million 1-12/2021 1-12/2020
Orders received 31.2 20.2
Order book at end of period 10.7 6.5
Net sales 25.6 24.6
Comparable EBITA 1.2 -1.6
Comparable EBITA, % 4.7% -6.6%
Comparable operating result (EBIT) 0.4 -2.5
Comparable operating result (EBIT), % 1.6% -10.1%
Operating result (EBIT) -0.1 -3.0
Operating result (EBIT), % -0.4% -12.0%
Net working capital 7.9 8.4
Employees at end of period 103 94
Financial position, cash flow and
financing
At the end of December, Glaston
Group’s balance sheet total was EUR
197.3 (207.3) million. Intangible assets
amounted to EUR 75.8 (76.9) million,
of which goodwill was EUR 58.6 (58.3)
million. At the end of the period, prop-
erty, plant and equipment amounted
to EUR 22.9 (23.1) million and inven-
tories to EUR 27.3 (25.1) million. At the
end of the year the contract assets
of customer projects accrued at the
pace of revenue recognition were
netted against advance payments
received for the projects. This resulted
in around a EUR 25.7 million reduction
in current assets and liabilities in the
closing balance sheet for 2021.
The comparable return on capital
employed (ROCE) was 6.1 (4.7)%.
At the end of December, the com-
pany’s net gearing was 26.9 (48.8)%.
The equity ratio was 42.3 (41.2)%. Net
interest-bearing debt totaled EUR 18.3
(33.6) million. The average maturity of
Glaston’s long-term debt was 1.3 years
at the end of the year. From Janu-
ary-December, Glaston’s cash flow
from operating activities was EUR 19.3
(0.7) million. Cash flow from investing
activities was EUR -3.1 (-2.2) million
and cash flow from financing activities
was EUR -13.8 (5.9) million.
Capital expenditure, depreciation
and amortization
Glaston Group’s January–December
gross capital expenditure totaled
EUR 5.2 (3.4) million and was primar-
ily related to product development,
real estate, and intellectual property
rights. Depreciation and amortization
of property, plant, and equipment, and
of intangible assets, totaled EUR -7.9
(-8.1) million.
Investments in product develop-
ment, digitalization and innovation
GIn 2021, Glaston ramped up its
research and product development
efforts and aligned them with the
updated strategy’s cornerstone
initiative Innovate with customers to
win. The initiative focuses on strength-
ening Glaston’s role as a technology
leader through the seamless inte-
gration of customer understanding,
joint and more rapid innovation and
development work. In the last quarter
of 2021, the focus was on establishing
processes for integrating customer
needs with Glaston’s R&D and product
management.
In 2021, projects and innovations
related to automation, ease of use and
self-learning were at the forefront of
product development. Glaston contin-
ued to strongly focus on the develop-
Glaston Annual Review 2021 59
Glaston 2021
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Governance
Financial review
ment towards fully automated lines in
insulating glass and heat treatment
technologies, as well as automotive
and display technologies. Signifi-
cant steps towards developing a fully
automated tempering line were taken
during the early part of the year when
the company completed the first
part of the strategically significant FC
series tempering machine order. The
development of the new tempering
process autopilot, which learns how
to achieve the most optimal way of
running the line, progressed.
In Insulating Glass Technologies,
the development and field testing of
the MULTI’ARRISSER arrissing machine
were successfully completed. With
the new MULTI’ARRISSER, Glaston has
introduced a fast and user-friendly
solution for high-quality arrissing
of straight glass edges with proven
cup wheel technology. The product
was well received by customers and
Glaston was able to secure several
orders for the new machine in 2021.
In addition, the CORNER’REFINER
for sealed IG units was launched on
the market. In Automotive & Display
product development, the focus
was on developing an adaptive and
self-learning manufacturing process
for high-end automotive and display
glass, transforming the Swiss unit from
machine supplier into a technology
leader.
From January–December 2021,
research and product development
expenditure, excluding depreciation,
totaled EUR 7.0 (6.4) million, of which
EUR 1.8 (1.7) million was capitalized.
Research and product development
expenditure amounted to 3.8 (3.8)% of
net sales.
Personnel
On 31 December 2021, Glaston Group
had a total of 750 (723) employees. At
the end of December, the Heat Treat-
ment segment employed 283 (293)
people, the Insulating Glass segment
359 (330) people and the Automotive
& Display segment 103 (94) people. Of
the Group’s personnel, 35%, i.e. 260
employees, worked in Germany, 26%,
i.e. 195, worked in Finland, 12% worked
elsewhere in the EMEA area, 20%
worked in Asia and 7% worked in the
Americas.
Due to the pick-up in the Heat
Treatment business that was noted at
the end of 2020, the previously agreed
temporary lay-offs in Finland were
canceled as of February 2021. Reflect-
ing the higher workload, short-time
work in Glaston’s Automotive business
in Switzerland, introduced in autumn
2019, ceased from February onwards.
However, Swiss production person-
nel temporarily returned to reduced
working hours in May and June due to
a lower workload.
As the COVID-19 pandemic was still
ongoing, Glaston continued adopting
the strict coronavirus safety guidelines
in 2021. Many of Glaston’s employees
continued to work remotely in order
to safeguard their own health and the
health of production personnel. During
the summer, employees gradually
started returning to the offices, with
strict rules to prevent the spread of
the virus. As the COVID-19 situation
took a turn for the worse in many
countries during the latter part of the
year, a hybrid work model incorporat-
ing both remote and on-site work was
introduced.
Strategy
Glaston’s revised strategy and
updated financial targets for 2021–
2025 were approved in August 2021.
The key objectives of the revised
strategy are improved organic growth
and profitability, based on Glas-
ton’s own strategic initiatives and
the expected market growth. The
roadmap for 2021–2025 builds on Glas-
ton’s business area-specific strategic
initiatives, while the successful imple-
mentation of the strategy is supported
by strong leadership and Group-wide
cornerstone initiatives.
In the review period, the imple-
mentation of the five cornerstone
initiatives continued. In the ‘Innovate
with customers to win’ cornerstone
initiative, a steering group was formed
and the harmonization of sales tools
and processes progressed. The ‘Lead
digital transformation’ cornerstone
initiative worked on Gaston’s digital
vision and targets and the shared
business architecture for platform
solutions and user interface stand-
ards. In the ‘Empower Glastonians to
thrive’ cornerstone, the new leader-
ship principles were launched and
progress was made with the global
competence mapping and talent
review. In the ‘Elevate sustainability
& continuous improvement’ corner-
stone initiative, the Group-wide safety
organization was formally nominated
and the Group-wide reporting pro-
cesses were established. In addition,
the sustainability work and report-
ing were further developed and the
Group’s materiality assessment was
updated. The ‘Global sourcing and
manufacturing’ cornerstone initiative
focused on a development roadmap
of the sourcing function.
For the strategy period 2021–2025,
the following financial targets have
Glaston Annual Review 2021 60
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Sustainability
Governance
Financial review
been set: i) Annual average net sales
growth (CAGR) clearly exceeding
the addressable equipment market
growth of more than 5% ii) Compa-
rable operating margin (EBITA) of
10% at the end of the strategy period
and iii) Comparable return on capital
employed (ROCE) of 16% at the end of
the strategy period.
In 2021, net sales growth was 7.4%,
still partially impacted by the low
order intake at the start of the pan-
demic. For comparable EBITA, the
performance improved to 6.1% (4.6%
in 2020). Comparable ROCE also
improved to 6.1 (4.7% in 2020) and,
excluding the exceptional write-off of
loan receivables, comparable ROCE
would have been 7.4%.
For the non-financial strategic
targets, progress in the Group-wide
safety target of zero lost time acci-
dents (LTA) is measured using the
Lost-Time-Injury-Frequency Rate,
which improved to 3.3 from 10.8 in
2020. Glaston’s CO
2
emissions (scope
1+2) were 2,608 tons of CO
2
and CO
2
intensity (tons of CO
2
per millions of
euros in net sales) was 14.3 compared
to 16.3 in 2020. The target is a reduc-
tion of CO
2
emissions (scope 1+2) in
relation to net sales by 50% from the
2020 level. Measurement of Net Pro-
moter Score (customer satisfaction)
and employee engagement will start
in 2022.
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 order to system-
atically develop Glaston’s sustainabil-
ity agenda, a Sustainability Working
Group was established in September
2021 with the mandate to coordinate
sustainability development in Glaston,
as well as implement sustainability-re-
lated practices. The working group will
also develop sustainability further to
capture business opportunities and
to meet increased regulatory require-
ments and stakeholder expectations.
In the review period, the Sustain-
ability Working Group reviewed the
materiality assessment and the Exec-
utive Management Group approved
the revised assessment in December.
Most of the material topics remained
the same: responsible own activities
(personnel, environment, responsi-
ble business), responsible sourcing,
responsible partner and responsi-
ble member of society. The indica-
tors, objectives and outcomes were
aligned with the strategy’s non-finan-
cial targets. Climate-related risks and
biodiversity were assessed by utilizing
the framework of the Task Force on
Climate-related Financial Disclosures
(TCFD).
Regarding Glaston’s greenhouse
gas emissions, over 80% occur in Fin-
land, Germany and China. In Decem-
ber 2021, Glaston made the decision
to switch to renewable electricity at
its production facilities in Finland and
Germany as of January 2022, thereby
significantly reducing its CO
2
emis-
sions.
Glaston Annual Review 2021 61
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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 2021 was EUR 12.7 (12.7) million.
1.1.-31.12.2021
No. of shares and
votes
Share turnover,
EUR million
GLA1V 84,289,911 20.6
Highest Lowest Closing Average price
*)
Share price 1.40 0.72 1.14 0.98
31.12.2021 31.12.2020
Market value 96.1 75.0
Number of shareholders 7,427 7,352
Foreign ownership, % 27.3 27.3
*) trade-weighted average
At the end of the review period, Glaston Corporation’s largest shareholders were
Ahlstrom Capital B.V. 26.4%, Hymy Lahtinen Oy 12.2%, Varma Mutual Pension
Insurance Company 7.5%, Ilmarinen Mutual Pension Insurance Company 7.3%
and OP-Finland Small Firms Mutual Fund 6.0%.
Glaston Annual Review 2021 62
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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 6,318,061 7.5%
4
Ilmarinen Mutual Pension Insurance Company
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 Mininvest Oy 949,682 1.1%
10 Sijoitusrahasto Aktia Capital 900,000 1.1%
10 largest shareholders total 57,585,842 68.3%
Nominee registered shareholders 1,343,437 1.6%
Other shares 25,360,632 30.1%
Total 84,289,911 100.0%
Ownership distribution 31 December, 2021
Shares total
% of shares
and votes
Households 20,063,150 23.8%
Public sector institutions 12,920,563 15.3%
Financial and insurance institutions 9,638,193 11.4%
Corporations 16,148,620 19.2%
Non-profit institutions 1,494,514 1.8%
Foreign countries 22,681,434 26.9%
Tot al 82,946,474 98.4%
Nominee registered 1,343,437 1.6%
Total 84,289,911 100.0%
Yhteensä 84,289,911 100.0%
10 largerst shareholders 31 December, 2021 Shareholders by share ownership 31 December, 2021
Number of shares
Number of
shareholders
% of
shareholders Shares total
% of shares
and votes
1-100 1,718 23.13% 84,994 0.10%
101-1,000 3,281 44.18% 1,461,796 1.73%
1,001-10,000 2,056 27.68% 6,437,225 7.64%
10,001–100,000 324 4.36% 8,755,563 10.39%
100,001-99,999,999 48 0.65% 67,550,333 80.14%
Total 7,427 100.00% 84,289,911 100.00%
Number of shares issued 84,289,911 100.00%
The share ownership of the Board of Directors and the Executive Management
Group is presented in Note 29 of the consolidated financial statements.
Glaston Annual Review 2021 63
Glaston 2021
Sustainability
Governance
Financial review
Governance
Annual General Meeting 2021
The Annual General Meeting of Glas-
ton Corporation was held on 13 April
2021 in Helsinki. The General Meeting
adopted the financial statements and
consolidated financial statements for
the financial period from 1 January to
31 December 2020 and discharged
the members of the Board of Direc-
tors and the President and CEO from
liability for the financial year from 1
January to 31 December 2020.
In accordance with the proposal
of the Board of Directors, the General
Meeting resolved that a return of cap-
ital of EUR 0.02 per share be distrib-
uted for the financial year ended 31
December 2020. The return of capital
was paid to shareholders who are reg-
istered in the Company’s register of
shareholders, maintained by Euroclear
Finland Ltd, on the record date for
payment, 15 April 2021. The return of
capital was paid on 23 April 2021.
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 the current members of
the Board of Directors, Mr. Veli-Matti
Reinikkala, Mr. Sebastian Bondes-
tam, Mr. Antti Kaunonen, Ms. Sarlotta
Narjus, Mr. Michael Willome and Mr.
Tero Telaranta, and to elect Ms. Arja
Talma as a new member of the Board
of Directors. The Board of Directors
was elected for a term continuing until
the close of the next Annual General
Meeting. Further information on the
members of the Board of Directors
is available on Glaston Corporation’s
website at www.glaston.net.
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 and meeting fees of the
members of the Board of Directors, as
well as fees paid for Committee work
remain unchanged. The Chairman of
the Board of Directors is paid an annual
fee of EUR 60,000, the Deputy Chair-
man an annual fee of EUR 40,000 and
the other members of the Board of
Directors an annual fee of EUR 30,000.
In accordance with the proposal
by the Nomination Board, the Gen-
eral Meeting resolved that a member
of the Board of Directors 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 January-March 2021
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 Chairman of
the Board is paid EUR 800 for meet-
ings held in the Chairman’s home
country and EUR 1,500 for meetings
held elsewhere and the other Mem-
bers of the Board are paid EUR 500 for
meetings held in their home coun-
try and EUR 1,000 for meetings held
elsewhere. For per capsulam Board
Meetings, half of the normal meeting
fee will be paid. Furthermore, it was
resolved that each Member of the
Board will be compensated 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
Compensation and Audit Committees
remain unchanged and that all mem-
bers of the Audit and Compensation
Committees will be paid a meeting
fee of EUR 500 for each meeting
attended. In addition to the meeting
fee, the Chairman of the Audit Com-
mittee will be paid an annual fee of
EUR 10,000 and the Chairman of the
Compensation 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 account-
Glaston Annual Review 2021 64
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Sustainability
Governance
Financial review
ing firm KPMG Oy Ab as the Com-
pany’s auditor. The auditing firm has
announced that the auditor in charge of
the audit is Authorised Public Account-
ant Lotta Nurminen. In accordance with
the proposal of the Board of Directors,
the General Meeting 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 Meet-
ing authorized the Board of Directors
to decide on the repurchase 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 Finn-
ish 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 repurchase 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 2022 and it revokes corre-
sponding 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-
ized to resolve on all terms and
conditions of the issuance of shares,
options and other rights entitling to
shares as referred to in Chapter 10 of
the Companies Act, including the pay-
ment period, grounds for the deter-
mination of the subscription price
and subscription price or allocation of
shares, option or other rights free of
charge, or that the subscription price
may be paid besides in cash also by
other assets either partially or entirely
(contribution in kind).
The authorization is effective until
30 June 2022 and it revokes corre-
sponding 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
Chairman of the Board and Sebastian
Bondestam as Deputy Chairman of the
Board. In addition, the composition of
the Board committees was resolved to
be as follows:
Audit Committee:
Arja Talma (Chairman), Veli-Matti
Reinikkala, Tero Telaranta
Compensation Committee:
Sebastian Bondestam (Chairman),
Antti Kaunonen, Sarlotta Narjus,
Michael Willome
Shareholders’ Nomination Board
On 22 September 2021, 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 share-
holders 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
September 2021, the following per-
sons have been nominated as mem-
bers of the Nomination Board: Lasse
Heinonen (Ahlstrom Capital BV),
Glaston Annual Review 2021 65
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Governance
Financial review
Jaakko Kurikka (Hymy Lahtinen Oy),
Pekka Pajamo (Varma Mutual Pension
Insurance Company) and Esko Torsti
(Ilmarinen Mutual Pension Insurance
Company). Veli-Matti Reinikkala,
Chairman of the Company’s Board of
Directors, has served as an advisory
member of the Nomination Board.
In its organizing meeting on 22 Sep-
tember 2021, the Nomination Board
elected Lasse Heinonen amongst its
members as the Chairman.
On 15 December 2021, the Share-
holders’ Nomination Board disclosed
its proposal concerning the Board
composition and remuneration to the
AGM 2022. 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 be increased to be as follows:
Chairman EUR 70,000 (60,000), Vice
Chairman 43, 000 (40,000) and Mem-
bers EUR 33,000 (30,000).
Organizational and Executive
Management changes
As of 1 January 2021, Glaston made
changes to the Group structure as the
Emerging Technologies operations,
previously part of the Automotive &
Emerging Technologies business area,
were restructured and became part
of the regional sales structure. As of
the same date, Glaston’s business
areas are Glaston Heat Treatment
Technologies, Glaston Insulating Glass
Technologies and Glaston Automotive
& Display Technologies.
On 1 February 2021, operations in
Glaston’s Brazilian subsidiary were dis-
continued. Going forward, customer
support and sales have been con-
ducted together with external parties.
On 12 March 2021, the appointment
of Hannele Anonen as SVP People
and Culture and a member of the
Executive Management Group was
announced. She took up her position
on 1 August 2021 and reports to Pres-
ident & CEO Anders Dahlblom. In this
connection, Taina Tirkkonen, General
Counsel, and SVP Human Resources,
continued as the company’s General
Counsel and member of the Execu-
tive Management Group.
In order to boost internal efficiency,
on 30 September 2021, Glaston
divested its glass handling business
to Cimec Oy. In this connection, the
companies signed a distribution
agreement for handling devices and
Glaston will continue to offer handling
devices under the Glaston brand to its
customers. The divestment will enable
increased capacity for the insulat-
ing glass business at the Neuhaus-
en-Hamberg facility. The divestment
did not have any impact on personnel.
Glaston Annual Review 2021 66
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Financial review
Report on non-financial information 2021
In Glaston’s revised strategy, pub-
lished in August 2021, sustainability has
been identified as a key focus area.
Addressing the company’s focus on
sustainability, in addition to its financial
targets, Glaston has set new non-fi-
nancial strategic targets, highlighting
the sustainable nature of the compa-
ny’s business and the strategic impor-
tance of the company’s environ-
mental, social and governance (ESG)
commitment. Glaston’s material top-
ics are related to safe working envi-
ronment, product quality and safety,
responsible business operations and
behavior, responsible procurement
and the company’s climate impacts.
Glaston’s business model and
value creation
Glaston provides glass processing
machines and related services to the
architectural glass, automotive glass,
solar energy glass and display indus-
tries. Glaston’s offering comprises heat
treatment and insulating glass tech-
nologies for the architectural market
and pre-processing technologies for
the automotive and display industries
as well as related services. Glaston’s
offering is the broadest in the industry.
As the innovative frontrunner in its
industry, Glaston’s ambition is to con-
tinue being the leader in developing
the industry towards a more sustain-
able future. The majority of Glaston’s
business is targeted at the architec-
tural customer segment in which
the company’s products provide key
technologies for improving energy
efficiency and the safety of buildings.
Glaston has sales and services
offices in 10 countries around the
world. At the end of 2021, the com-
pany had four production plants: in
Tampere, Finland; in Neuhausen, Ger-
many; in Bützberg, Switzerland; and
in Tianjin, China. At the end of 2021,
Glaston had 750 employees.
Glaston wants to make a posi-
tive contribution to the societies in
which it operates. In particular, the
company creates value for its cus-
tomers through its energy-efficient,
reliable products and services. As a
buyer of products and services and
as an employer, the company creates
wealth and jobs locally. The com-
pany also creates economic value as
a taxpayer in the countries where it
operates. Glaston works closely with
various research institutes and uni-
versities, creating social value through
product development and innovation.
In 2021, Glaston paid a capital return to
shareholders of EUR 1.7 million. Glaston
paid EUR 1.0 million in taxes.
Responsibility in Glaston
In line with the strategy, Glaston’s
purpose is to build a better tomor-
row through safer, smarter, and more
energy-efficient glass solutions. As
environmental awareness increases,
demand for more energy-efficient
and environmentally sustainable glass
solutions is growing. Glaston contin-
uously develops its product and ser-
vices offering to meet the customers’
growing need to reduce material and
energy consumption and emissions in
their production.
In Glaston’s revised strategy,
addressing the company’s focus on
sustainability, in addition to its financial
targets, Glaston has set new non-
financial strategic targets. The non-
financial targets for 2021−2025 are:
• Customer satisfaction score (Net
Promoter Score, NPS) above 40
• Group-wide safety target measured
as zero lost time accidents (LTA,
progress measured as accident
frequency, LTIFR)
• Employee Engagement target
above 75 (out of 100)
• Glaston’s CO
2
emissions (scope 1+2)
in relation to net sales down by 50%
from the 2020 level. In 2020, green-
house gas emissions were 2,777
tons of CO
2
with net sales of EUR
170.1 million.
In late 2021, Glaston updated the mate-
riality assessment, taking into account
in particular the non-financial objec-
tives of the updated strategy. The main
material topics remained unchanged:
responsible own activities (personnel,
environment, responsible business),
responsible purchasing, responsible
partner and responsible member of
society. The indicators and targets
related to the key themes were spec-
ified towards the end of the year. The
updated material topics were approved
by the company's Executive Manage-
ment Group in December 2021.
Glaston Annual Review 2021 67
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Sustainability
Governance
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Topic Indicator Objective Outcome 2021 Timetable
Responsible
business
Training of personnel in Code
of Conduct
Training coverage 100% Training started in 2021, at
year-end training coverage
97%
Training to be included in
induction training
Continuous
Safe
workplace
Accident frequency (LTIFR),
number of accidents per
million hours worked
LTIFR = 0 LTIFR= 3,3 2025
Reports on workplace
harassment
No harassment cases No reports in 2021 Continuous
Employee engagement Employee Engagement target
above 75 (out of 100)
Baseline to be calculated
in 2022
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
Outcome (14.3 tCO
2
/€M)
-13% compared to 2020 level
2025
Emissions in value chain Scope 3 emissions to be
calculated in 2022
2022
Energy and material
efficiency
Target to be specified in 2022 2022
Responsible
sourcing
Supplier Code of Conduct
coverage of new and existing
suppliers
Commitment coverage 100% Commitment to be
incorporated into contracts
during 2022
2025
Responsible
partner
Industry’s best customer
experience
Customer satisfaction score (NPS)
over 40
Reporting to start in 2022 2025
Key responsibility objectives and indicators:
Glaston Annual Review 2021 68
Glaston 2021
Sustainability
Governance
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Policies and due diligence
At Glaston, responsibility is part of our
everyday activities. The company is
committed to complying in full with
national and international laws, regula-
tions, and generally accepted operat-
ing practices in all of its operations.
To go beyond the minimum level
set by regulations, and to clearly state
Glaston’s ethical standards, all our
operations are guided by the Code
of Conduct, which is approved by the
company’s Board of Directors. The
Code of Conduct describes the com-
pany’s requirements and expectations
regarding responsible and ethical con-
duct. In addition, the Code of Conduct
guides Glaston’s employees in their
daily work with colleagues and with
customers, suppliers and other stake-
holders. The topics covered include
workplace conduct and responsi-
ble business practices as well as the
environment and sustainable devel-
opment. In 2021, more than 97% of the
employees completed the training of
the updated Code of Conduct.
The Code of Conduct also includes
a commitment to respect human
rights, and harassment of any kind
is strictly prohibited. In our everyday
activities, Glaston is committed to
combating bribery and corruption. In
addition, a separate Supplier Code of
Conduct has been issued that will be
part of the purchasing agreement.
The Code of Conduct is comple-
mented by the following Group-level
policies, approved by the Board of
Directors: Anti-bribery and anti-cor-
ruption policy, CAPEX policy, Credit
Management policy, Disclosure policy,
Group Treasury policy, IT Security pol-
icy and Risk Management policy. Local
policies on occupational health and
safety, for example, complement the
Group-level guidelines. Occupational
safety is managed and developed
locally at the company’s various units in
line with local legislation.
Data security has become increas-
ingly important, and the develop-
ment of data security is a particular
focus in relation to both Glaston's own
data and that of its customers. Glas-
ton's IT Security policy describes the
objectives and principles and defines
responsibilities. In 2022, the IT Secu-
rity Policy will be updated. IT security
is monitored and audited and a SOC
(Security Operations Center) service
is in place to monitor security events
on a 24/7 basis. No significant security
incidents were reported in 2021.
At Glaston’s assembly and produc-
tion units, the company operates in
accordance with the ISO 9001 qual-
ity management system. In Finland,
Glaston manages environmental issues
in accordance with the ISO 14001
environmental management system.
In 2022, preparations will be made to
adopt the ISO 27001 information secu-
rity standard.
Glaston has a whistleblowing sys-
tem, which allows personnel to report
anonymously any violations of the
Code of Conduct and other guidelines.
Group-level guidelines and policies are
available on the company’s intranet.
Local guidelines are available on
operating locations’ intranet sites and
shared networks. If necessary, guide-
lines are issued to personnel in printed
form (personnel manual).
Sustainability management
Sustainable business, environmen-
tal and social responsibility and good
governance are included in the strat-
egy adopted by the Board of Direc-
tors. Sustainable business practices
are promoted through a Group-wide
cornerstone initiative. The Sustainability
Working Group is responsible for the
systematic development of the sustain-
ability agenda and for coordinating the
development of sustainable business
in Glaston and implementing related
practices. The group reports on the
development to the Executive Manage-
ment Group and the Board of Directors.
Personnel and social responsibility
At the end of the financial year, Glas-
ton had 750 employees (31.12.2020:
723), of whom 184 (169) worked in
Finland. In 2021, the average number
of employees was 731 (744). Person-
nel expenses in January−December
totaled EUR 58.4 (53.8) million.
Glaston’s strength is professional,
committed and healthy employees.
Glaston is committed to continuously
developing the skills of employees
and providing them with a safe and
inspiring work environment where
people have the opportunity to learn
and develop.
At Glaston people are treated
with dignity, decency and respect.
That environment is characterized by
mutual trust and the absence of any
type of harassment, discrimination,
intimidation, oppression and exploita-
tion. Offensive or inappropriate
behavior is not tolerated. The above
is particularly applicable to sexual
harassment by any parties, including
superiors, fellow employees, custom-
ers or suppliers – it will not be toler-
ated under any circumstances.
The company’s objective is no
reports on workplace harassment.
All reported cases are investigated
and, where appropriate, appropriate
action is taken. The parties concerned
Glaston Annual Review 2021 69
Glaston 2021
Sustainability
Governance
Financial review
will be informed of the outcome of
the process. In 2021, no suspicions on
breaches of Glaston’s Code of Con-
duct regarding social and employee
issues were reported in the company.
In Glaston's updated strategy for
2021−2025, occupational safety is one
of the focus areas, and the company
has set a Group-wide occupational
safety target: zero lost time accidents.
To achieve this, safety will be inte-
grated into operational practices. A
safety working group, composed of
representatives from different func-
tions, has been set up to manage and
develop safety. In 2021, the LTIFR was
3.3 (10.8).
Human rights
Glaston respects human rights as set
forth in the United Nations Universal
Declaration of Human Rights and basic
labor rights as defined by the Inter-
national Labour Organization. Glaston
does not accept any use of child or
forced labor in its own or suppliers or
subcontractors’ operations.
Glaston operates globally and
therefore in a multicultural environ-
ment. Glaston’s Code of Conduct
includes a commitment to respect
human rights. Employees and job
applicants must be treated and
evaluated in accordance with their
work-related abilities, and no one
should be treated less favorably than
others due to race, color, nationality,
ethnicity, religion, gender, sexual ori-
entation, disability, trade union mem-
bership, or political affiliation.
In accordance with its Code of
Conduct, Glaston acts fairly towards
its suppliers, service providers and
subcontractors. Glaston, in turn,
expects all partners to follow all appli-
cable laws and regulation and comply
with the separately established Glas-
ton Supplier Code of Conduct. In 2021,
no suspicions on breaches of human
rights were reported in the company.
Actions against bribery
and corruption
In Glaston’s Code of Conduct, the
company undertakes to promote fair
competition and to comply with the
law in all of its activities. The Code of
Conduct states that business rela-
tionships must be based on objective
criteria. 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 inap-
propriate advantage. The Code of
Conduct requires personnel to avoid
conflicts of interest and to refuse all
inappropriate payments and benefits.
The purpose of Glaston’s Anti-brib-
ery and anti-corruption policy is to
raise employees’ awareness of the risk
of corrupt payments, to prohibit their
payment as bribes as stated in Glas-
ton’s Code of Conduct, and to ensure
that we conduct our business with
integrity, the highest ethical standards,
and in compliance with anti-corrup-
tion laws, rules and regulations.
In 2021, no suspicions of bribery or
corruption arose in the company.
Environmental responsibility
The vast majority of Glaston's envi-
ronmental impact arises when cus-
tomers use Glaston’s technologies
throughout their life cycle.
Glaston develops and designs its
machines to withstand use at high
utilisation rates. Predictive and regu-
lar maintenance and a wide range of
upgrade products improve produc-
tion efficiency and extend the life of
the machines. The long service life of
Glaston glass processing machines,
up to 20 years, supports the envi-
ronmental objectives of sustainable
development.
Safety in the use of Glaston’s
machines is based on the EU Machin-
ery Directive and the EN standards
mentioned therein. The Directive
requires manufacturers to carry out,
among other things, a risk analysis of
the machine, listing possible risks to
personnel without protection dur-
ing the various stages of using the
machine, and measures to reduce
risks as well as information on any
residual risk, which must be men-
tioned in operating instructions and
in which the user must be trained.
The company is also responsible for
ensuring that the machine is con-
structed of items and components
according to a parts list, for which
specific requirements are set. An EU
certificate of conformity is signed for
every machine. Once the machine
has been installed, tested, the users
trained, and it is in all respects ready
for production, a CE-plate is affixed to
the machine. All Glaston’s machines
manufactured in Europe comply with
the EU directive.
Improving the environmental
performance of products is largely
achieved through product devel-
opment and continuous product
improvement. Product development
focuses on the energy efficiency of
products, and as a result, customers
can process their glass more ener-
gy-efficiently. The company also
focuses on digital and IoT-based
solutions and services in its product
development. These will enable the
Glaston Annual Review 2021 70
Glaston 2021
Sustainability
Governance
Financial review
optimization of machine performance
and real-time customer support
without the need for environmentally
damaging travel.
No serious environmental accidents
or leakages were reported in 2021.
Glaston's main environmental
impacts from its own operations
come from the energy consumption
of its properties and from transport.
Glaston is committed to a reduc-
tion of its CO
2
emissions (scope 1+2)
in relation to net sales by 50% by 2025
from the 2020 level. In 2020, green-
house gas emissions (scope 1+2)
calculated in line with GHG Protocol
were 2,777 tonnes of CO
2
. In 2021,
greenhouse gas emissions were 2,608
tonnes of CO
2
with net sales of EUR
182.7 million. In relation to net sales
emission decreased by 13% compared
to 2020.
The EU taxonomy
The European Union has set an ambi-
tious long-term goal to be climate
neutral by 2050. The European Union’s
Sustainable Finance Classification
System (EU taxonomy) was pub-
lished in 2020 and contributes to the
achievement of the EU environmental
goals by channeling investments for
the transition to a climate-neutral and
environmentally sustainable economy.
The taxonomy is not intended to clas-
sify companies as either sustainable
or not. Rather, it is a system to deter-
mine whether products and services
qualify as environmentally sustainable.
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 eco-
systems. A taxonomy aligned activ-
ity must benefit at least one of the
objectives without harming any of the
others. Additionally, the activity has to
meet the Minimum Social Safeguards.
The taxonomy currently covers
measures related to climate change
adaptation and mitigation and covers
three types of activities: 1) activities
that in and of themselves contrib-
ute substantially to one of the six
environmental objectives; 2) transi-
tion activities for which there are no
technologically and economically
feasible low-carbon alternatives,
but that support the transition to a
climate-neutral economy in a man-
ner that is consistent with a pathway
to limit the temperature increase to
1.5 degrees Celsius above pre-indus-
trial levels and 3) enabling activities:
activities that enable other activities to
make a substantial contribution to one
or more of the objectives.
The technical screening criteria
form the basis for taxonomy reporting
as these determine the conditions for
making a substantial contribution to the
environmental objective. For the first
two objectives (climate change mitiga-
tion and climate change adaptation),
the criteria were published in spring
2021. For the other four objectives, the
criteria will be published in 2022.
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 contribute
to climate change mitigation.
Technical screening criteria are
criteria for determining the conditions
under which an economic activity
qualifies as contributing substantially
to climate change mitigation and for
determining whether that economic
activity causes no significant harm
to any of the other environmental
objectives.
The manufacture of energy effi-
ciency equipment for buildings,
Section 3.5 of Annex 1*), identifies the
manufacturing of high-performance
windows and their key components
as an economic activity that signifi-
cantly contributes to climate change
mitigation. Insulated Glass Units (IGU)
represent between 70 to 80% of the
surface area of a window and are a
key component affecting its energy
efficiency, which has been demon-
strated in studies of CO
2
savings**).
In manufacturing energy-efficient
windows on an industrial scale, the
technical screening criteria for thermal
conductivity (U value) of less than 1.0
W/m
2
K cannot be met without utilizing
insulating glass units (IGU). Thus, insu-
lating glass manufacturing technolo-
gies for IGU production are essential
for achieving the set threshold.
(*) *) COMMISSION DELEGATED REGULATION
(EU) …/... supplementing Regulation (EU)
2020/852 of the European Parliament and
of the Council by establishing the techni-
cal 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 determining whether that
economic activity causes no significant harm
to any of the other environmental objectives.
C/2021/2800 final
**) Potential impact of high-performance
glazing on energy and CO
2
saving in Europe,
TNO, 2019.
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Governance
Financial review
Business risks
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 macroeco-
nomic 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 energy industries. In recent
years, general economic and finan-
cial market conditions in Europe and
elsewhere in the world have fluctu-
ated significantly, and the general
increase in uncertainty could reduce
the willingness to invest and therefore
negatively impact Glaston’s order
intake, net sales, and earnings. Given
the strategical importance of China
Taxonomy-eligible /non-eligible economic activities
Turnover
Taxonomy-eligible activities, % 44%
Taxonomy-non eligible activities, % 56%
CapEx
Taxonomy-eligible activities, % 12%
Taxonomy-non eligible activities, % 88%
OpEx
Taxonomy-eligible activities, % 0%
Taxonomy-non eligible activities, % 100%
Going forward, Glaston’s conclusions on the taxonomy may change as the
assessment criteria become more precise and further guidance is available.
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, and we have identified 44%
of taxonomy eligible turnover. Cap-
ital expenditure to improve insulat-
ing glass equipment’s capabilities,
efficiency and suitability for different
production environments is regarded
as taxonomy eligible. In total, we have
identified 12% of taxonomy eligible
investments in 2021.
Similarly, Glaston’s development of
heat treatment equipment for pro-
cessing glass for photovoltaic mod-
ules is regarded as an enabling activity
as it is a key component for manufac-
turing renewable energy technologies
(NACE C28.99). Further, the compa-
ny’s consultations regarding the pro-
duction technologies and processes
for photovoltaic glass are regarded as
a development of the processes and
technologies dedicated to reducing
GHG emissions (NACE M71.1.2).
Glaston Annual Review 2021 72
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Financial review
market, any afore described impact
in China could have adverse effects in
strategy implementation.
The COVID pandemic has affected
many aspects of life in cities world-
wide as well as commercial building
industry development. The future role
of office buildings might change as
remote work becomes more com-
monplace as a result of the COVID
pandemic. In the mid-to-long term,
this could have an impact on com-
mercial building development, which
is an important driver especially for
flat tempering and flat laminating in
the heat treatment business. Demand
for insulating glass machines is cur-
rently driven by the widespread global
need to improve the energy perfor-
mance of buildings and is, therefore,
less dependent on the global eco-
nomic 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
behavior, stricter requirements, and
tighter regulation have led to a shift in
the investments of automotive indus-
try 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, among other things, through
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 33% of
the company’s net sales in 2021.
In addition to sales of new machines,
the company is focusing on increasing
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-
nies and regional manufacturers and
service providers, as well as indirectly
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 competi-
tors 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 processing industry globally and
also plays an important role in Glas-
ton’s renewed strategy, purchasing
behavior is more cost-conscious than
in other market areas. Consequently,
price competition is intense and local
players have a certain competitive
advantage in the market. The compa-
ny’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.
Technology and IPR risks
One of Glaston’s most significant
strategic risks is technology risk, i.e.
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 realise in case Glaston’s technol-
ogy would infringe third party rights.
Further, Glaston invests in new, ear-
ly-stage technologies whose com-
mercial viability is uncertain.
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. However, the
risks were not found to be significant.
The potential risks associated with
responsibility, climate change and
Glaston’s products include regulatory
changes, environmental protection
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
Glaston Annual Review 2021 73
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example through the insulating glass
and new glass 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, cus-
tomers can process their glass more
energy-efficiently 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 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 and
that the risk of corruption and fraud is
possible 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 eth-
ical operating principles and requires
strict compliance with its anti-corrup-
tion procedures. The Code of Conduct
describes the company’s require-
ments 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 stakeholders. The topics
covered include workplace conduct
and responsible business practices as
well as the environment and sustain-
able development. All personnel are
trained in the Code of Conduct.. The
Code of Conduct is complemented by
other Group-level operating guidelines
approved by the Board of Directors
such as, for example, the Supplier Code
of Conduct and the Anti-bribery and
Anti-corruption policy. Local guidelines
supplement the Group-level guidelines.
Glaston has a whistleblowing system
that allows personnel to anonymously
report any violations of the Code of
Conduct 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.
Pandemic risk
In 2021, the direct impact of the COVID-
19 pandemic decreased. Neverthe-
less, there is still significant uncertainty
related to the pandemic with several
potential development scenarios. The
situation is changing quickly. The new
variants of the virus, which might be
significantly more transmissible, cou-
pled with a slow rollout of vaccinations
in a number of countries and vaccines
not working effectively against new
and rapidly spreading variants of the
virus further complicates the situation.
New waves of infections could become
more severe than the earlier ones and
last much longer than estimated, requir-
ing more stringent and longer-lasting
containment measures than estimated.
Mitigation of the COVID-19 pan-
demic-related effects on business has
been a priority throughout the year
and Glaston has taken prompt action
to safeguard the health and safety of its
employees. Because of the preventive
measures that were already introduced
at an early stage, Glaston has been able
to maintain all production operations
throughout the pandemic. Glaston
is continuing to monitor the situation
closely.
If the COVID-19 pandemic con-
tinues for a longer period and the
expected rebound does not take
place, the willingness of Glaston’s
customers to invest in new equip-
ment could decrease. If the operating
conditions of the services business
deteriorate again, the company’s per-
formance could suffer.
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 availability
and permanence of expert person-
nel. In some cases, the possible failure
of a single project may have signifi-
cant financial implications if its size or
contractual terms and conditions are
exceptional.
Glaston Annual Review 2021 74
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Financial review
Disruptions in supply chains
Of the above mentioned, the supply
chain disruptions currently constitute
the main risk for Glaston’s business
operations. These disruptions are
expected to continue in 2022 and
Glaston is actively mitigating the
higher than customary risks related to
raw material and component prices
and availability, as well as logistics cost
increases and freight 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 of 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
the IT security. 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, digitalization
and developing technologies are
bringing requirements for technologi-
cal and business management exper-
tise. The Group’s ability to attract
expertise and maintain a high level of
job satisfaction among its employees
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 recog-
nize an impairment loss, which, when
implemented, will weaken the result
and equity.
Financial risks
The Group’s most significant financial
risks are foreign exchange, credit,
liquidity and refinancing risks. Finan-
cial risks and their management are
described in the section Management
of Financial Risks of the Annual Review.
The Group’s risk management pro-
cesses are described in the Corporate
Governance Statement.
Short-term risks and business
uncertainties
The supply chain disruptions consti-
tute the main short-term risk for Glas-
ton’s business operations. These dis-
ruptions are expected to continue into
2022 and Glaston is actively mitigating
the higher than normal risks related
to raw materials, component prices
and availability, as well as logistics cost
increases and freight availability. Major
supply chain disruptions may impact
the company’s performance.
Even though the impact of the
COVID-19 pandemic has decreased,
there is still significant uncertainty
related to the pandemic in terms of
its duration and new virus variants,
which might be significantly more
transmissible, such as the current
Omicron variant, coupled with the
potentially slow rollout of vaccinations
and vaccines not working effectively
against new and rapidly spreading
variants of the virus, further compli-
cating the situation. New lockdowns
and more stringent travel restrictions
are particularly affecting service work
and the spare parts business, as well
as machine installations. Under the
prevailing circumstances, there is
also a higher than normal uncertainty
related to customers’ investment
behavior.
Labor shortages and rising
employee turnover are a growing
concern, especially in the USA. Glas-
ton’s ability to maintain a high level of
job satisfaction among its employees,
as well as attracting new employees,
is further emphasized.
Events after the Review Period
On 27 January 2022 Glaston disclosed
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 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 on 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.
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
Glaston Annual Review 2021 75
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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 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 18 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.
Glaston’s outlook for 2022
In 2021, Glaston’s markets saw a con-
tinued recovery and strong growth.
We expect positive development
to continue in 2022 with good pro-
gress for both machines and services
business. At the start of 2022, our
order backlog was 48% higher than
the previous year providing a strong
starting point for 2022 and supporting
Glaston’s net sales and profitability
development. In 2022, Glaston will
focus on the execution of its strat-
egy which will incur costs and capital
expenditure ahead of the effect on
revenue growth. As the COVID-19
pandemic continues and supply chain
disturbances have become a longer-
term challenge, a higher than normal
uncertainty is related to the devel-
opment of economic activity and
customers’ investments.
Glaston Corporation estimates that
its net sales and comparable EBITA
will improve in 2022 from the levels
reported for 2021. In 2021, Group net
sales totaled EUR 182.7 million and
comparable EBITA was EUR 11.1 million.
Board of Directors’ proposal on
the distribution of profits
The distributable funds of Glaston
Corporation, are EUR 65,418,781 of
which EUR 5,042,127 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 12 April 2022 that the loss for
the financial year 2021 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 2021,
a return of capital of a total of EUR
2,528,697 be distributed., i.e. EUR 0.03
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 Euroclear Finland Ltd, on the record
date for payment, 14 April 2022. The
*) Comparable EBITA: operating result before
amortization, impairment of intangible assets
and purchase price allocation excluding items
affecting comparability
Board of Directors proposes to the
Annual General Meeting that the
return of capital be paid on 26 April
2022.
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 2,528,697.
EUR 62,890,083 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 14 February 2022
GLASTON CORPORATION
Board of Directors
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Per Share Data
2021 2020 2019
(*
Earnings per share, EUR 0.013 -0.065 -0.089
Comparable earnings per share 0.060 0.013 0.040
Return of capital per share, EUR
(1
0.03 0.02 -
Return of capital ratio, %
(1
227.6% - -
Return of capital yield
(1
2.6% 2.2% -
Return of capital , EUR million
(1
2.5 1.7 -
Adjusted equity attributable to owners
of the parent per share, EUR 0.81 0.82 0.87
Price per earnings per share (P/E) ratio 86.5 -13.7 -14.1
Price per equity attributable to owners
of the parent per share 1.41 1.09 1.44
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 72,071,521
2021 2020 2019
(*
Share price and turnover
Share price, year high, EUR 1.40 1.27 1.82
Share price, year low, EUR 0.72 0.58 1.05
Share price, volume-weighted year
average, EUR 0.98 0.78 1.25
Share price, end of year, EUR 1.14 0.89 1.26
Number of shares traded (1,000) 20,577 24,638 10,878
% of average number of registered shares 24.4% 29.2% 15.1%
Market capitalization of registered shares,
end of year, treasury shares excluded,
EUR million 96.1 75.0 105.8
(1 Board of Directors' proposal to Annual General Meeting
(* A Reverse share split was implemented on 1 March 2019. A Rights issue was implemented during
the second quarter in 2019. Per share key ratios have been calculated based on the number of
shares adjusted with share issue.
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Financial Ratios
EUR thousand 2021 2020 2019
Income statement and profitability
Net sales 182,662 170,067 181,018
Operating result 5,105 -541 -1,270
% of net sales 2.8% -0.3% -0.7%
Comparable operating result (EBIT) 6,569 3,225 5,937
% of net sales 3.6% 1.9% 3.3%
Comparable EBITA 11,098 7,742 9,746
% of net sales 6.1% 4.6% 5.4%
Financial income and expenses (net) -3,945 -2,761 -3,084
% of net sales -2.2% -1.6% -1.7%
Result before income taxes and non-
controlling interests 1,160 -3,302 -4,354
% of net sales 0.6% -1.9% -2.4%
Income taxes -49 -2,161 -2,042
Net profit / loss attributable to owners
of the parent 1,111 -5,463 -6,393
% of net sales 0.6% -3.2% -3.5%
Return on capital employed (ROCE), % 2.8% -0.4% -1.3%
Comprable return on capital employed
(Comparable ROCE), % 6.1% 4.7% 8.7%
Return on equity, % 1.6% -7.7% -11.6%
Research and development expenses 6,450 5,823 6,437
% of net sales 3.5% 3.4% 3.6%
Gross capital expenditure 5,168 3,368 63,081
% of net sales 2.8% 2.0% 34.8%
Order book, EUR million 94.8 63.9 79.5
EUR thousand 2021 2020 2019
Statement of financial position and solvency
Property, plant and equipment and
intangible assets 47,392 48,605 53,216
Goodwill 58,605 58,327 58,327
Non-current assets total 111,581 113,494 118,418
Equity attributable to owners of the parent 68,030 68,881 73,429
Liabilities 129,253 138,399 143,244
Total assets 197,283 207,281 216,671
Capital employed 113,152 125,764 126,322
Net interest-bearing debt 18,269 33,623 33,032
Equity ratio, % 42.3% 41.2% 41.6%
Gearing, % 66.3% 82.6% 72.0%
Net gearing, % 26.9% 48.8% 45.0%
Personnel
Personnel, average 731 744 689
Personnel, at the end of the period 750 723 790
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EUR thousand 2021 2020 2019
Comparable operating result (EBIT) and EBITA
Operating result 5,105 -541 -1,270
Items affecting comparability 1,464 3,766 7,206
Comparable EBIT 6,569 3,225 5,937
Operating result 5,105 -541 -1,270
Amortization and purchase price allocation 4,530 4,517 3,810
EBITA 9,635 3,976 2,540
Items affecting comparability 1,464 3,766 7,206
Comparable EBITA 11,098 7,742 9,746
% of net sales 6.1% 4.6% 5.4%
EUR thousand 2021 2020 2019
Comparable ROCE% and EPS
Profit/loss for the period before taxes 1,160 -3,302 -4,354
Financial expenses 2,184 2,740 3,125
Purchase price allocation 2,503 2,771 2,078
Items affecting comparability 1,464 3,766 7,206
Total 7,311 5,974 8,056
Equity 68,030 68,881 73,429
Interest bearing liabilities 45,121 56,882 52,893
Avg (1.1.and end of period) 119,007 126,043 92,237
Comparable ROCE% annualized 6.1% 4.7% 8.7%
Profit/loss for the period 1,111 -5,463 -6,393
Purchase price allocation 2,503 2,771 2,078
Items affecting comparability 1,464 3,766 7,206
Total 5,078 1,074 2,891
Number of shares , average 84,290 84,290 72,072
Comparable earnings per share 0.060 0.013 0.040
The reconciliation of alternative performance measures
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Per share data
Earnings per share (EPS)
Net result attributable to owners of the parent
Adjusted average number of shares
Dividend per share*
Dividends paid
Adjusted 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
Adjusted number of shares at end of the period
Average trading price
Shares traded (EUR)
Shares traded (volume)
Price per earnings per share (P/E)
Share price at end of the period
Earnings per share (EPS)
Price per equity 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 aver-
age 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
*The definition is 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
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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, %
(Interest-bearing liabilities x 100)
Equity (Equity attributable to owners of the parent + non-controlling interest)
Net gearing, %
(Net interest-bearing debt x 100)
Equity (Equity attributable to owners of the parent + non-controlling interest)
Return on 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
affecting comparability
Comparable EBITDA
Operating result before depreciation, amortization and impairment, +/- items
affecting comparability
Comparable EBITA
Operating result before amortization, impairment of intangible assets and pur-
chase price allocation +/- items affecting comparability
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
liabilities, 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 / Adjusted 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 intangi-
ble assets, exceptional compensations for damages and legal proceedings are
restated as an item affecting comparability.
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Consolidated Financial Statements
Glaston 2021
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Financial review
Consolidated Statement of Financial Position
at 31 December
EUR thousand Note 2021 2020
Assets
Non-current assets
Goodwill 12,13 58,605 58,327
Other intangible assets 13 17,209 18,567
Property, plant and equipment 14 22,874 23,125
Right-of-use assets 21 7,310 6,913
Financial assets measured at fair value
through other comprehensive income 15 8 2,842
Loan and other non-current receivables 17,19 2,933 2,095
Deferred tax assets 11 2,643 1,625
Total non-current assets 111,581 113,494
Current assets
Inventories 16 27,277 25,109
Receivables
Trade and other receivables 17 17,115 17,721
Contract assets 6 14,322 27,347
Assets for current tax 11 137 351
Cash equivalents 26,852 23,259
Total current assets 85,702 93,787
Total assets 197,283 207,281
at 31 December
EUR thousand Note 2021 2020
Equity and liabilities
Equity
Share capital 18 12,696 12,696
Other restricted equity reserves 18 286 74
Reserve for invested unrestricted equity 18 107,863 109,549
Other unrestricted equity reserves 18 -288 -233
Retained earnings and exchange differences 18 -52,527 -53,204
Total equity 68,030 68,881
Non-current liabilities
Non-current interest-bearing liabilities 20 30,405 44,028
Non-current lease liabilities 21 6,882 6,620
Non-current non interest bearing liabilities 19 6 537
Non-current provisions 22 297 263
Deferred tax liabilities 11 9,263 7,764
Total non-current liabilities 46,853 59,212
Current liabilities
Current interest-bearing liabilities 20 6,159 4,644
Current lease liabilities 21 1,675 1,590
Current provisions 22 2,482 3,531
Trade and other current interest-free payables 23 69,259 67,153
Contract liabilities 6 2,063 1,383
Liabilities for current tax 11 763 886
Total current liabilities 82,400 79,187
Total liabilities 129,253 138,399
Total equity and liabilities 197,283 207,281
The main calculations presented by the Group must be read together with the relevant notes
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Consolidated Statement of Profit or Loss
1 January - 31 December
EUR thousand Note 2021 2020
Net sales 6 182,662 170,067
Other operating income 7 4,284 2,329
Changes in inventories of finished goods and
work in progress 16 1,003 -15,914
Own work capitalized 5 241
Materials 8 -82,964 -65,155
Personnel expenses 9 -58,371 -53,815
Other operating expenses 8 -33,590 -30,188
Depreciation, amortization and impairment 12 -7,924 -8,107
Operating result 5,105 -541
Financial income 10 334 194
Financial expenses 10 -4,279 -2,955
Financial items, net -3,945 -2,761
Result before income taxes 1,160 -3,302
Income taxes 11 -49 -2,161
Profit / loss for the period
1,111 -5,463
Attributable to:
Owners of the parent 1,111 -5,463
Earnings per share, EUR 0.013 -0.065
Earnings per share, EUR, basic and diluted
0.013 -0.065
The main calculations presented by the Group must be read together with the relevant notes
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Consolidated Statement of Comprehensive Income
1 January - 31 December
EUR thousand 2021 2020
Profit / loss for the period 1,111 -5,463
Other comprehensive income that will be reclassified
subsequently to profit or loss:
Exchange differences on translating foreign operations 1,352 -629
Cash flow hedges -55 -277
Income tax on other comprehensive income - -1
Other comprehensive income that will not be
reclassified subsequently to profit or loss:
Fair value changes of financial assets measured at
fair value through other comprehensive income -2,834 -120
Actuarial gains and losses arising from defined
benefit plans 1,788 1,559
Taxes on actuarial gains and losses arising from
defined benefit plans -567 276
Other comprehensive income for the reporting period -316 809
Total comprehensive income for the reporting period 795 -4,654
Attributable to:
Owners of the parent 795 -4,654
The main calculations presented by the Group must be read together with the relevant notes
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Consolidated Statement of Changes in Equity
EUR thousand
2020 Note Share capital
Reserve for invested
unrestricted equity
Fair value and other
reserves Retained earnings
Cumulative exchange
difference Total equity
Equity 1 January 12,696 109,549 287 -53,270 4,167 73,429
Total comprehensive income
for the period 18 - - -452 -3,575 -627 -4,654
Share-based incentive plan - - - - 45 45
Share-based incentive plan,
tax effect - - - - -9 -9
Return of capital - - - - - -
Total transactions with
owners of the Company - - - - 36 36
Other changes - - - 70 70
Equity 31 December 12,696 109,549 -165 -56,844 3,646 68,881
EUR thousand
2021 Note Share capital
Reserve for invested
unrestricted equity
Fair value and other
reserves Retained earnings
Cumulative exchange
difference Total equity
Equity 1 January 12,696 109,549 -165 -56,844 3,646 68,881
Total comprehensive income
for the period 18 - - - -549 1,344 795
Share-based incentive plan - - - - 170 170
Share-based incentive plan,
tax effect - - - - -34 -34
Return of capital -1,686 - - - -1,686
Total transactions with
owners of the Company - -1,686 - - 136 -1,550
Other changes - - - - -96 -96
Equity 31 December 12,696 107,863 -165 -57,393 5,030 68,030
The main calculations presented by the Group must be read together with the relevant notes
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Consolidated Statement of Cash Flows
1 January - 31
December
EUR thousand 2021 2020
Cash flows from operating activities
Net result attributable to owners of the parent 1,111 -5,463
Adjustments to net result attributable to owners of the
parent 8,481 11,548
Interest received 214 134
Interest paid -1,411 -1,349
Dividends received - 9
Other financing items -239 -997
Income taxes paid -1,026 -901
Cash flows from operating activities before change in net
working capital 7,131 2,981
Change in net working capital
Change in inventories -3,363 16,663
Change in current receivables 10,766 -12,227
Change in interest-free current liabilities 4,794 -6,696
Change in net working capital, total 12,197 -2,260
Cash flows from operating activities 19,328 720
Cash flows from investing activities
Other purchases of non-current assets -5,168 -3,369
Proceeds from sale of business 400 564
Proceeds from sale of other non-current assets 1,621 586
Cash flows from investing activities -3,147 -2,220
Cash flow before financing 16,180 -1,499
1 January - 31
December
EUR thousand 2021 2020
Cash flows from financing activities
Draw-down of non-current loans - 7,500
Repayments of non-current loans - -
Change in loan receivables (decrease +, increase -) 48 88
Draw-down of current loans - -
Repayments of current loans -12,144 -1,644
Return of capital -1,686 -
Cash flows from financing activities -13,782 5,945
Effect of exchange rate fluctuations 1,194 -1,047
Net increase (- decrease) in cash and cash equivalents 3,593 3,398
Cash and cash equivalents at beginning of period 23,259 19,861
Cash and cash equivalents at end of period 26,852 23,259
Net increase (- decrease) in cash and cash equivalents 3,593 3,398
The above figures cannot be directly derived from the statements of financial position.
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Supplemental Information for Statement of Cash Flows
1 January - 31 December
EUR thousand 2021 2020
Cash and bank 26,852 23,125
Other securities - 135
Total cash and cash equivalents 26,852 23,259
Cash flows from operating activities
Adjustments to net result attributable to owners
of the parent
Depreciation, amortization and impairments 7,924 8,107
Changes of provision -1,015 -639
Financing items 3,945 2,761
Taxes 49 2,161
Others -2,421 -842
Adjustments to net result attributable to owners
of the parent, total 8,481 11,548
Cash flows from investing activities
Proceeds from sale of business* 400 350
Net cash flow 400 350
Total cash outflow on lease liabilities -3,184 -3,021
* On 30 September 2021, Glaston divested its glass handling business to Cimec Oy
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Summary of significant accounting policies –
consolidated financial statements
Notes to the Consolidated Financial Statements / Note 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 Helsinki, Finland.
Glaston Group is an international
glass technology company. Glaston is
one of the leading manufacturers of
glass processing mac
hines globally. Its
product range and service network are
the most extensive in the industry. The
operations of Glaston Group are organ-
ized in three reportable segments
which consists of operating segments.
The Board of Directors of Glas-
ton Corporation has in its meeting
on 14 February 2022 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.
Basis of Presentation
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 Finan-
cial Reporting Standards (IFRS), includ-
ing International Accounting Standards
(IAS) and Interpretations issued by
the International Financial Reporting
Interpretations Committee (SIC and
IFRIC). International Financial Report-
ing Standards are standards and their
interpretations adopted in accordance
with the procedure laid down in regula-
tion (EC) No 1606/2002 of the Euro-
pean Parliament and of the Council.
The Notes to the Financial Statements
are also in accordance with the Finnish
Accounting Act and Ordinance and the
Finnish Companies' Act.
The consolidated financial 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 subsidiaries is
the calendar year ending 31 December.
The financial statements have been
prepared under the historical cost
convention except as disclosed in the
accounting policies below.
The figures in Glaston's 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.
Applied New and Amended Standards
and Interpretations
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 state-
ments. In April 2021, the IFRS Inter-
pretations Committee issued a final
agenda decision on the accounting for
the costs of configuring and custom-
izing cloud services (IAS 38 Intangible
Assets). In the agenda decision, the
Interpretation Committee consid-
ered whether, in applying IAS 38, the
customer recognizes an intangible
asset for the configuration and cus-
tomization of the application and, if
the intangible asset is not recognized,
how the customer recognizes those
configuration and customization costs.
Glaston Group has taken into account
the effects of the agenda decision on
the handling of cloud services and has
determined that the decision has not
had a significant effect on the Group's
result, financial position or presentation
of the financial statements.
In addition to the standards and
interpretations presented in the finan-
cial statements for 2021, the Group will
adopt IFRS standards, IFRIC interpre-
tations and changes to existing stand-
ards and interpretations that enter into
effect in 2022. Management estimates
that these will have no material effect
on Glaston’s consolidated financial
statements.
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Consolidation Principles
The consolidated financial statements
include the parent and its subsidiaries.
Subsidiaries are companies in which the
parent has, based on its holding, more
than half of the voting rights directly
or via its subsidiaries or over which it
otherwise has control. Divested subsid-
iaries 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 consolida-
tion process. Unrealized gains arising
from transactions with associates are
eliminated to the extent of the Group’s
interest in the entity. Unrealized losses
are eliminated in the similar way as
unrealized gains, but only to the extent
that there is no evidence of impairment.
Foreign Subsidiaries
In the consolidated financial state-
ments, statements of profit or loss,
statements of comprehensive income
and statements of cash flows of foreign
subsidiaries have been translated into
euros using the average exchange rates
of the reporting period and the state-
ments 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 compre-
hensive income and statements of
financial position using the different
exchange rates is recognized as other
comprehensive income and included
in retained earnings in equity. Exchange
differences arising from the transla-
tion of the net investments in foreign
subsidiaries and associates in non-eu-
ro-area are also recognized in other
comprehensive income and included in
equity as cumulative exchange differ-
ence.
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 dis-
posal is recognized.
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
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.
Financial Assets and Liabilities
Glaston’s financial assets have been
classified into three categories: as
assets recognized at amortized cost,
at fair value through other compre-
hensive income and at fair value
through profit or loss. The classifica-
tion depends on the business model
under which the financial assets are
managed as well as the characteris-
tics of the instrument’s cash flows. A
financial asset item is derecognized
from the statement of financial posi-
tion 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 effec-
tive interest 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 dis-
charged or canceled or has expired.
Derivative Contracts Recognized at Fair
Value through Profit or Loss, And 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
financial statements using the mar-
ket 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. Deriv-
atives that do not meet the hedge
accounting conditions are financial
assets and liabilities acquired for trad-
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ing 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 hedg-
ing 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
hedging instrument as well as the
same hedge ratio that management
actually uses in risk management.
If the hedging accounting con-
ditions are met, cash flow hedge
accounting 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.
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.
In reporting periods 2021 and 2020,
hedge accounting was used in hedg-
ing the trade receivables of projects.
At the end of reporting periods 2021
and 2020, Glaston had open foreign
exchange forward contracts.
Other Assets Recognized at Fair Value
through Profit or Loss
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
purchases 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 mar-
ket 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 receiva-
bles and other receivables have been
classified as loans and other receiv-
ables. They are included in current or
non-current financial assets in accord-
ance 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 receiv-
ables. The estimate made for doubt-
ful 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 impair-
ment losses are recognized in profit
or loss as other operating expenses. If
the impairment loss is final, the trade
receivable is derecognized from the
allowance account. If a payment is later
received from the impaired receivable,
the received amount is recognized in
profit or loss as a deduction of other
operating expenses. If no impairment
loss has been recognized in allowance
account and the impairment loss of
the trade receivable is found to be final,
impairment loss is recognized directly
as deduction of trade receivables.
Loan receivables are carried at the
original amount less an estimate made
for doubtful receivables. The estimate
made for doubtful receivables is based
on a separate review of all loan receiv-
ables 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 pay-
ments are considered as indications of
impairment of the receivable. Impair-
ment 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.
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 liabilities
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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 com-
prehensive 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.
Cash and Cash Equivalents
Cash and cash equivalents com-
prise cash and other financial assets.
Other financial assets are highly liquid
investments with remaining maturi-
ties at the date of acquisition of three
months or less. Bank overdrafts are
included in current interest-bearing
liabilities.
Financial Liabilities Measured at
Amortized Cost
On initial recognition financial liabili-
ties are measured at their fair values
that are based on the consideration
received. Subsequently, financial liabil-
ities 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
accordance with their maturity.
Interest expenses are accrued for
and mainly recognized in profit or loss
for each period. If an asset is a qualify-
ing asset as defined in IAS 23 Borrow-
ing Costs, the borrowing costs that are
directly attributable to the acquisition,
construction or production of a qualify-
ing asset are capitalized to the acqui-
sition cost of the asset. The capitaliza-
tion applies mainly to property, plant
and equipment and intangible assets.
Revenue Recognition
Net sales include the total invoicing
value of products sold and services
provided less discounted interest and
sales tax, cash discounts and rebates.
Foreign exchange differences arising
from trade receivables are recognized
as sales adjustments.
Revenue 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 deliv-
ery. 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 rec-
ognition 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.
Pensions and Other Long-term
Employee Benefits
The Group has various pension plans
in accordance with the local practices
in the countries where it operates. The
pension plans are classified as defined
contribution plans or defined benefit
plans. The payments to the schemes
are determined by actuarial calculations.
The contributions to defined con-
tribution plans are charged to profit or
loss in the period to which the contri-
butions relate.
The obligations for defined benefit
plans have been calculated separately
for each plan. Defined benefit liabilities
or assets, which have arisen from the
difference between the present value
of the obligations and the fair value of
plan assets, have been entered in the
statement of financial position.
The defined benefit obligation is
measured as the present value of the
estimated future cash flows using
interest rates of government securi-
ties that have maturity terms approx-
imating 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
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loss. Other changes in net defined
benefit liability are recognized in other
comprehensive income with no sub-
sequent recycling to profit or loss.
Share-based Payments
Glaston Corporation has share-based
incentive plans for the Group’s key
personnel. Depending on the plan, the
reward is settled in shares, cash, or a
combination thereof, provided that
the key employee’s employment or
service with the Group is in force and
the criteria for the performance is ful-
filled. If a key employee’s employment
or service with the Group ends before
the payment of a reward, the main
principle is that no reward will be paid.
The granted amount of the incen-
tive plans settled in shares is meas-
ured at fair value at the grant date, and
the cash-settled part of the plans is
measured at fair value at the reporting
or payment date.
The expenses arising from the
incentive plans are recognized in profit
or loss during the vesting periods. The
cash-settled portion of the incentive
plans is recorded as a liability in the
statement of financial position, if it has
not been paid, and the portion set-
tled in shares is recorded in retained
earnings in equity net of tax. Glaston
records the personnel costs arising
from the share-based incentive plans
to the extent it is liable to pay them.
The share-based incentive plans are
described in Note 28 to the consoli-
dated financial statements.
Current and Deferred 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 also recognized in other
comprehensive income.
The Group's deferred tax liabilities
and assets have been calculated for
temporary differences, which have
been obtained by comparing the 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 tem-
porary differences can be utilized. In
calculating deferred tax liabilities and
assets, the tax rate used is the tax rate
in force at the time of preparing the
financial statements or which has been
enacted by end of the reporting period.
Principal temporary differences arise
from depreciation and amortization
of property, plant and equipment and
intangible assets, defined benefit plans,
recognition of net assets of acquired
companies at fair value, through other
comprehensive income and derivative
instruments at fair value, inter-com-
pany inventory profits, share-based
payments and confirmed tax losses.
Items Affecting Comparability
Items affecting comparability are
adjusted for non-business transac-
tions 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, restructuring of
the production structure, and reduc-
tion 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, excep-
tional compensations for damages
and legal proceedings are restated as
an item affecting comparability.
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
economic benefits attributable to the
asset will flow to the Group. Intan-
gible 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 accounting for cloud com-
puting arrangements depends on
whether the cloud-based software
classifies as a software intangible asset
or a service contract. Those arrange-
ments 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
application software over the contract
period. The ongoing fees to obtain
access to the application software,
together with related configuration
or customisation costs incurred, are
recognised under Other operating
expenses, for example when the ser-
vices are received. Prepayments paid
to the cloud vendor for customizing
services which are not distinct, are rec-
ognized over the contract period.
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Acquired intangible assets recog-
nized as assets separately from good-
will are recorded at fair value at the time
of the acquisition of the subsidiary.
The estimated useful lives for intan-
gible assets are as follows:
Computer software, patents,
licenses, trademarks, product
rights ..................................................3–10 years
Capitalized development
expenditure .................................... 5 –7 years
Other intangible assets ..........5–10 years
Research costs are expensed as
incurred. Expenditure on develop-
ment 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 techni-
cally 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 impair-
ment. Research expenditure and
development expenditure recognized
in profit or loss are recognized in oper-
ating expenses.
Borrowing costs are capitalized as
part of the acquisition cost of intangi-
ble assets if the intangible assets are
qualifying assets as defined in IAS 23
Borrowing Costs. In 2021 or 2020 Glas-
ton did not have any qualifying assets.
Goodwill
Goodwill represents the excess of
the acquisition cost over fair value
of the assets less liabilities of the
acquired entity. Goodwill arising from
the acquisition of foreign entities of
acquisitions 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. Purchase
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 amor-
tized. The carrying amount of good-
will is tested annually for impairment.
The testing is made more frequently
if there are indications of impairment
of the goodwill. Any possible impair-
ment loss is recognized immediately
in profit or loss.
Glaston’s goodwill has been allo-
cated to the cash generating units of
the group.
Property, Plant and Equipment
Property, plant and equipment are
stated at historical cost less accumu-
lated depreciation and impairment
losses. The cost of self-constructed
assets includes the cost of materi-
als, direct labor and an appropriate
proportion of production overheads.
When an asset consists of major com-
ponents with different useful lives,
they are accounted for as separate
items. Assets from acquisition of a
subsidiary are stated at their fair val-
ues 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 use-
ful 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 sit-
uated in Tianjin, China. This is reported
as 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 operat-
ing expenses.
The costs of major inspections
or the overhaul of property, plant
and equipment items, that occur at
regular intervals and are identified
as separate components, are cap-
italized 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 tangi-
ble assets if the tangible assets are
qualifying assets as defined in IAS
23 Borrowing Costs. In 2021 or 2020
Glaston did not have any qualifying
assets.
Impairment of Assets
Annual impairment tests for goodwill
are performed during the fourth quar-
ter of the year. If there is, however, an
indication of impairment of goodwill,
the impairment tests for goodwill are
performed earlier during the financial
year. 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
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amount is estimated, based on the
higher of an asset's fair value less costs
to sell and value in use. An impairment
loss is recognized in profit or loss
whenever the carrying amount of an
asset or cash generating unit exceeds
its recoverable amount. If subsequently
recording the impairment loss a pos-
itive change has occurred in the esti-
mates of the recoverable amount, the
impairment loss made in prior years is
reversed no more than up to the value
which would have been determined
for the asset, net of amortization or
depreciation, had not impairment loss
been recognized in prior years. For
goodwill, a recognized impairment loss
is not reversed.
Cash flow projections have been
calculated on the basis of reasonable
and supportable assumptions. They
are based on the most recent financial
plans and forecasts that have been
approved by management. Estimated
cash flows are used for a maximum
of five years. Cash flow projections
beyond the period covered by the
most recent plans and forecasts
are estimated by extrapolating the
projections. The discount rate is the
weighted average cost of capital. It
is a pre-tax rate and reflects current
market assessments of the time value
of money at the time of review and
the risks related to the assets.
As a result of the Bystronic glass
acquisition in 2019, the Group's report-
ing has been changed to reflect the
new organizational structure, and
from the beginning of 2021, segment
reporting was changed to conform to
the new strategy and structure. .Due
to the changes in segment reporting
and re-organization the cash-gen-
erating units Heat Treatment Service
and Heat Treatment Machines were
combined into a single cash-generat-
ing unit, Heat Treatment Technologies,
on 1 January 2021. CGUs are com-
bined as the cash flow they generate
is not independent of each other. The
units use common resources and
have a common customer base. The
cash flows generated by new com-
bined Heat Treatment Technologies
CGU are largely independent of the
cash flows generated by other assets
or groups of assets.
Impairment of assets is described
in more detail in Note 12 to the consoli-
dated financial statements.
Inventories
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 produc-
tion overheads. As Glaston’s machine
projects are usually not considered to
be qualifying assets as defined in IAS
23, borrowing costs are not included
in the cost of inventory in normal
machine projects.
Used machines included in the
inventory are measured individually
so that the carrying amount of a used
machine does not exceed the amount
that is expected to be received
from the sale of the machine. In this
measurement the costs arising from
converting the used machine back
to saleable condition are taken into
account.
Prototypes of new machines
included in inventory are measured
at the lower of cost and net realizable
value.
Government Grants
Government or other grants are rec-
ognized 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.
Accounting for Leases
All leases over 12 months in length 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 liability
item corresponding to the present value
of the asset, based on the obligation
to make the lease payments. IFRS 16
Leases contains exemptions for leases
of 12 months or less and for assets of low
value. 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 mini-
mum lease payments. At the inception
of the lease agreement, a lease liability is
recognized, which is determined as the
present value of the rental payables.The
discount rate will primarily be the interest
rate implicit in the lease, if available. In
leases where the implicit interest rate is
not specified, the discount rate used is
the lessee’s incremental borrowing rate,
the components of which are the cur-
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rency-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.
Glaston has leased machinery and
equipment for production use, which
have been treated as finance leases
and for which a finance lease receivable
has been recognized in the Group. 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.
Provisions
A provision is recognized when as a
consequence of some previous event
there has arisen a legal or construc-
tive obligation, and it is probable that
this will cause future expenses and
the amount of the obligation can be
evaluated reliably.
A restructuring provision is booked
only when a detailed and fully com-
pliant plan has been prepared for it
and implementation of the plan has
been started or notification of it has
been made known to those whom the
arrangement concerns. The amount
recognized as a provision is the best
estimate of the expenditure required
to settle the present obligation at the
end of the reporting period. If the time
value of money is material, provisions
are discounted.
A provision for warranties is recog-
nized 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.
Segment Information
Glaston’s reportable segments are
Glaston Heat Treatment, Glaston Insu-
lating Glass and Glaston Automotive &
Display.
The reportable segments com-
ply with the group’s accounting and
valuation principles. In inter-segment
transactions, Glaston complies with the
same commercial terms and condi-
tions as in its third party transactions.
The reportable segments consist of
operating segments, which have been
aggregated in accordance with the
criteria of IFRS 8.12. Operating seg-
ments have been aggregated, when
the nature of the products and services
is similar, the nature of the production
process is similar as well as the type or
class of customers. Glaston Group’s
business consists of the manufacture
and sale of glass processing machines
as well as the service operations for
these machines. There is a high level of
integration between glass machines
and maintenance. Their customers are
the same, as is their market develop-
ment, which is linked to the general
development of the global market.
The reportable segment is dis-
closed in more detail in the Note 5 to
the consolidated financial statements.
Critical Accounting Estimates and
Judgments
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 Note 2 to the consolidated
financial statements.
Dividends and Return of Capital
Dividends or return of capital pro-
posed by the Board of Directors are
not recorded in the financial state-
ments until they have been approved
by the shareholders at the Annual
General Meeting.
Earnings per Share
Basic earnings per share are calcu-
lated by dividing the net result attrib-
utable to owners of the parent by the
weighted average number of shares
outstanding during the year, exclud-
ing shares acquired by the Group and
held as treasury shares.
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Critical accounting estimates and judgments
Notes to the Consolidated Financial Statements / Note 2
The most significant management
estimates relate to impairment tests,
which require use of estimates in the
calculations. In impairment testing,
management estimates recoverable
amount of an asset or a cash gener-
ating 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 cur-
rent market assessments of the time
value of money at the time of impair-
ment 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 recov-
erable amount. The sensitivity anal-
yses related to the impairment tests
performed are described in Note 12 to
the consolidated financial statements.
Useful lives of intangible assets
and property, plant and equipment
are based on management's best
estimate of the period the asset is
expected to be available for use by
Glaston.
Customer relationships, trade-
marks, product development assets
and other intangible assets acquired
in a business combination are meas-
ured at fair value at the acquisition
date and subsequently amortized
over their estimated useful lives.
The actual useful life can, how-
ever, 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, man-
agement has to estimate the future
economic benefits arising from the
development cost. If management
estimates that there will not be future
economic benefits, the development
cost is recognized in profit or loss.
Whether a development cost is cap-
italized or recognized immediately in
profit or loss this can have an effect
on the result of the reporting period.
At the end of the reporting period of
2021, Glaston had EUR 6.0 (5.7) million
of capitalized development expend-
iture on its statement of financial
position.
Measurement of inventories and
trade and loan receivables includes
some management estimates.
Inventories are measured at lower
of cost and net 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 invento-
ries in order to avoid the inventories
being carried in excess of amount
expected to be realized from their
sale or use. If management esti-
mates 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. The carrying amount
of inventory at the end of the report-
ing period was EUR 27.3 (25.1) million,
the carrying amount of trade receiv-
ables was EUR 12.5 (14.6) million and
the carrying amount of loan receiva-
bles was EUR 0.2 (1.6) million.
Recognition and measurement
of deferred tax liabilities and assets
include management estimates,
especially deferred tax assets arising
from confirmed tax losses of group
companies or from other temporary
differences. Deferred tax assets are
recognized for deductible tempo-
rary differences and tax losses to the
extent that it is probable that taxable
profit will be available against which
tax credits and deductible tempo-
rary differences can be utilized. All
tax liabilities and assets are reviewed
at the end of the reporting period
and changes are recognized in profit
or loss. At the end of the reporting
period, Glaston’s had deferred tax
assets totaling EUR 2.6 (1.6) million
and deferred tax liabilities totaling
EUR 9.3 (7.8) million.
If Glaston’s management has
assessed that as a result of a past
event Glaston has a legal or con-
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structive 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 provi-
sion recognized from the obligation.
The amount of the provision is the
management’s best estimate of the
amount required to settle the obli-
gation at the end of the reporting
period. Glaston’s most significant
provision at the end of the reporting
period was the warranty provision
of totaling EUR 2.3 (2.7) million. The
management’s estimate of the war-
ranty provision is based on previous
experience. The estimate of the
restructuring provision is based on
the restructuring plan in which the
locations and personnel concerned
have been identified. If possible,
external experts have been used in
estimating the amount of the provi-
sion. If the management has esti-
mated that it is unlikely, that Glaston
has an obligation, a contingent lia-
bility is presented in the notes to the
consolidated financial statements.
Calculation of defined benefit
pensions and other defined long-
term employee benefits requires
choosing certain assumptions which
actuaries use in calculation of the
obligations arising from defined
benefit plans. These assumptions
include, among other things, dis-
count rates used in the measure-
ment of plan assets and liabilities as
well as other actuarial assumptions
such as future salary increases and
mortality rate.
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, Glas-
ton 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 com-
pletion. Revenue recognition takes
place over time according to when
costs accumulate and are recog-
nized for the project. Costs attribut-
able to a project for which revenue
is not yet recognized are included
in inventories as construction con-
tracts. Estimates are monitored and
updated monthly and changes in
revenue recognition are recognized
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 unforeseen
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 recog-
nition, the loss is recognized for the
period in which it is identified.
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Management of Financial Risks
Notes to the Consolidated Financial Statements / Note 3
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 com-
panies 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 amendments to this policy
as conditions within the Group and on
the financial markets change. Group
Treasury is responsible for monitor-
ing compliance with the Treasury
Policy as well as for presenting the
need for changes to Treasury Policy
to the parent’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 accord-
ance with the Treasury Policy. Liquid
assets are invested in low risk instru-
ments and only counterparties that
possess good credit-worthiness are
accepted. COVID-19 pandemic might
have an impact on company's finan-
cial risk. Glaston is closely monitoring
and managing its liquidity and finan-
cial position. Efforts have been taken
to strengthen receivables collection
throughout the year, and credit risk
and realized credit losses have not
increased. 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. No orders in the
order book have been cancelled.
Glaston is maintaining an ongoing
dialogue with customers in order to
continuously follow-up and mitigate
the situation.
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 sig-
nificant foreign exchange risk arises
from exchange rate fluctuations
between the euro and the US dollar,
but the Group may also have sig-
nificant exposures in Chinese Yuan,
English Pound and Swiss Franc. The
US dollar accounted for approxi-
mately 23 per cent of the net sales of
in 2021 (28 per cent in 2020). The Euro
and US dollar together accounted
for approximately 83 per cent of the
invoicing in 2021 (88 per cent in 2020).
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-
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Currency Forwards
Change in
currency rate,
Gross position
Change in
currency rate,
Net position
Impact on the income
statement
EUR thousand Gross position Nominal value Net position -10 per cent + 10 per cent -10 per cent + 10 per cent
USD/EUR -16,523 15,829 -694 -1,836 1,502 -77 63
BRL/EUR -808 - -808 -90 73 -90 73
CHF/EUR -348 - -348 -39 32 -39 32
CNY/EUR -4,559 - -4,559 -507 414 -507 414
GBP/EUR 20 3,365 -3,345 2 -2 -372 304
-22,218 19,194 -9,754
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 neces-
sary, the effect of interest rate fluctua-
tions 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 per cent
changed of interest rates to interest
expences for the period of 12 months.
At the end of 2021 this effect was EUR
159 thousand (EUR 218 thousand).
On 31 December 2021, the Group’s
interest-bearing net debt mainly
consisted of loans agreed with lenders
in the financing agreement signed in
2019.
For the sensitivity analysis as defined
by IFRS 7, a possible +1 / -0.5 percent-
age 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 2021 is EUR -0.16
/ +0.18 (-0.22 / +0.23) million.
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
rency fluctuations. Possible hedging of
foreign exchange risk is conducted in
accordance with the Treasury Policy
and the group companies are respon-
sible for reporting their respective
foreign currency items. In 2021, large
orders in USD and the percentage of
the most probable 18-month orders
defined in the Treasury Policy were
hedged by currency forward con-
tracts. Cash flow hedging was based
on IFRS 9 hedge accounting in 2021.
Cash flow hedging is presented in
note 27. 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 2021. 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.
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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.
At the end of 2021 19.6 (15.3) 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 2021 was
EUR 12.5 million (EUR 14.7 million).
Ageing analysis and changes in
allowance account of trade receiva-
bles are presented in Note 17 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
Committed credit facilities
EUR million In use Unused Total
Committed credit facilities 31.12.2021 8.1 26.9 35.0
Committed credit facilities 31.12.2020 15.4 19.6
35,.0
Committed credit facilites include bank overdraft and guarantee limits and EUR
7.5 million revolving credit facility maturing on 31 March 2023.
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
The Group’s funding is mainly
organized by using the approximately
EUR 75 million facilities agreement
signed in 2019 from which EUR 35
million is committed credit facilities.
The covenant terms of the financing
package are described in the section
on Management of capital.
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Maturity analysis of financial liabilities 31 December 2021
EUR thousand Maturing in
Maturity of financial liabilities Carrying amount Contractual cash flows < 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 - -
Tot al 60,974 67,120 26,995 33,352 4,918
Maturity analysis of financial liabilities 31 December 2020
EUR thousand Maturing in
Maturity of financial liabilities Carrying amount Contractual cash flows < 12 months 1-2 years > 2 years
Financial liabilities
Interest bearing loans 46,500 50,228 6,211 4,853 39,164
Other interest-bearing loans 2,172 2,206 21 1,685 499
Lease liabilities 8,211 11,754 1,590 1,313 5,308
Trade payables 13,186 13,186 13,186 - -
Tot al 70,068 77,373 21,008 7,851 44,971
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Management of Capital
The objective for management of
capital is to secure the continuation of
operations at all times and to maintain
an 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
31 December,
2021
31 December,
2020
Interest-bearing net debt
Non-current interest-bearing liabilities 37,287 50,648
Current interest-bearing liabilities 7,834 6,234
Cash and cash equivalents -26,852 -23,259
Tot al 18,269 33,623
Equity
Attributable to owners of the parent 68,030 68,881
Tot al 68,030 68,881
Total assets 197,283 207,281
Advances received -36,334 -40,142
Tot al 160,949 167,138
Equity ratio, % 42.3% 41.2%
Net gearing, % 26.9% 48.8%
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.
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Shares and Shareholders
Notes to the Consolidated Financial Statements / Note 4
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
shareholders. There are no limitations to
transfer the shares. At the end of 2021
and 2020, 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 main-
tained by Euroclear Finland Ltd.
According to the Articles of Associ-
ation of Glaston Corporation, a share-
holder whose proportion of all the com-
pany’s shares or the votes conferred
by the shares - either alone or together
with other shareholders as defined here-
inafter - 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 holders to shares under
the Companies Act according to the
provisions of this article.
According to the Articles of Asso-
ciation 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 Redee-
ming Shareholder a notification that
the shareholding 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 Redee-
ming Shareholder has paid for the
shares which he has purchased or
otherwise 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 pertain 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 2021 2020
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
Share-based incentive plan and management's shareholding
Share-based incentive plan is presented in detail in Note 28.
The Board of Directors' and Executive Management Group's share ownership is
presented in detail in Note 29.
Equity attributable to owners of the
parent per share 2021 2020
Equity attributable to owners of the
parent, EUR thousand 68,030 68,881
Number of shares 84,289,911 84,289,911
Equity attributable to owners of the parent
per share, EUR 0.81 0.82
Distribution of profit
Return of capital per share, EUR
(1
0.03 0.02
1)
The Board of Directors' proposal to the Annual General Meeting.
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Segment Information
Notes to the Consolidated Financial Statements / Note 5
Glaston’s reportable segments as of 1
January 2021 are Glaston Heat Treat-
ment, Glaston Insulating Glass and
Glaston Automotive & Display. The
reportable segments comply with
the group’s accounting and valuation
principles. In inter-segment transac-
tions, Glaston complies with the same
commercial terms and conditions as
in its third party transactions.
The reportable segments consist
of operating segments, which have
been aggregated in accordance with
the criteria of IFRS 8.12. Operating
segments have been aggregated,
when the nature of the products and
services is similar, the nature of the
production process is similar as well as
the type or class of customers. Glas-
ton Group’s business consists of the
manufacture and sale of glass pro-
cessing machines as well as the ser-
vice operations for these machines.
There is a high level of integration
between glass machines and mainte-
nance. Their customers are the same,
as is their market development, which
is linked to the general development
of the global market. Comparable
figures are restated.
2021
Heat
Treatment
Insulating
Glass
Automotive &
Display
Total
segments
Unallocated and
eliminations 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 - - - - -549 -549
Result for the reporting period 599 4,589 -90 5,098 -4,487 611
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
Reportable segment
EUR thousand
Glaston’s highest operative deci-
sion maker (CODM, Chief Operating
Decision Maker) is Glaston Corpora-
tion’s President & CEO, supported by
the Executive Management Group.
The President & CEO assesses the
Group’s financial position and its
overall development.
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Segment assets include external
trade receivables and inventory, and
segment liabilities include external
trade payables and advance pay-
ments received. In addition, segment
assets and liabilities include business
related prepayments and accru-
als 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 equiva-
lents.
2020
Heat
Treatment
Insulating
Glass
Automotive &
Display
Total
segments
Unallocated and
eliminations Total
External net sales 61,973 81,927 24,268 168,168 1,899 170,067
Internal net sales 17 356 -2 371 -371 -0
Total net sales 61,990 82,283 24,266 168,539 1,528 170,067
Operating result -1,267 3,564 -2,910 -613 72 -541
Financial items - - - - -2,761 -2,761
Income taxes - - - - -2,161 -2,161
Result for the reporting period -1,267 3,564 -2,910 -613 -4,850 -5,463
Segment assets 69,801 78,423 28,622 176,846 - 176,846
of which investments 1,810 946 612 3,368 - 3,368
Other assets - - - - 30,435 30,435
Total assets 69,801 78,423 28,622 176,846 30,435 207,281
Segment liabilities 33,003 35,109 4,003 72,114 - 72,114
Other liabilities - - - - 66,285 66,285
Total liabilities 33,003 35,109 4,003 72,114 66,285 138,399
Operative net working capital -11,857 2,081 7,301 -2,475 -254 -2,729
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Non-cash income and expenses included in
operating result
(1
2021 2020
Segment total -596 147
Unallocated - -
Total non-cash expenses and income -596 147
1)
Excluding impairment.
In 2021, non-cash income and expenses included the following items: impair-
ment losses of trade receivables EUR 0.7 million, impairment losses of inventory
EUR 0.3 million, changes in provisions EUR 0.4 million.
In 2020, non-cash income and expenses included the following items: impair-
ment losses of trade receivables EUR 0.7 million, impairment losses of inventory
EUR 0.5 million, changes in provisions EUR 1.4 million.
Personnel
Number of personnel at the end of the year
by segment 2021 2020
Heat Treatment 283 293
Insulating Glass 359 330
Automotive & Display 103 94
Total Segments 74 5 717
Unallocated 5 6
Total Glaston Group
750 723
Number of personnel at the end of the year
by geographical location
Finland 184 169
Other EMEA* 364 3 51
Americas* 49 54
APAC* 153 149
Total 750 723
Entity-wide disclosures
EUR thousand
Net sales by product groups 2021 2020
Goods sold 173,735 162,205
Services rendered 8,927 7,862
Total 182,662 170,067
Net sales by country by destination
Finland 4,300 6,300
Other EMEA* 91,378 88,147
Americas* 55,447 44,697
APAC* 31,536 30,924
Tot al 182,662 170,067
Assets by country
Finland 66,208 77,317
Other EMEA* 95,469 94,549
Americas* 17,388 18,371
APAC* 18,218 17,044
Tot al 197,283 207,281
*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.
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Revenue from contracts with customers
Notes to the Consolidated Financial Statements / Note 6
2021
Heat
Treatment
Insulating
Glass
Automotive &
Display
Total
segment
Unallocated and
eliminations 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
2020
Heat
Treatment
Insulating
Glass
Automotive &
Display
Total
segment
Unallocated and
eliminations Total
External net sales 61,973 81,927 24,268 168,168 1,899 170,067
Internal net sales 17 356 -2 371 -371 -0
Total net sales 61,990 82,283 24,266 168,539 1,528 170,067
Revenue recognition
Over time 39,092 17,774 8,040 64,905 - 64,905
At a point in time 22,899 64,509 16,226 103,634 1,528 105,162
Total net sales 61,990 82,283 24,266 168,539 1,528 170,067
Classification of net sales
EUR thousand
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Contract assets and liabilities
31.12.2021 31.12.2020 1.1.2020
Contract assets
Trade receivables 4,372 4,239 4,860
Project income receivables 14,322 27,347 12,647
Contract assets total 18,694 31,586 17,506
Contract liablities
Advance payments -35,160 -35,339 -17,280
Project expense liablities -1,945 -1,935 -2,485
Contract liablities total -37,104 -37,274 -19,765
Gross contract assets/liabilities -18,410 -5,689 -2,258
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. Projects subject to partial revenue recogni-
tion are, as a rule, completed in less than a year from start-up.
31.12.2021 31.12.2020
Transaction price allocated to performance obligations that are partially or fully unsatisfied at the end of the reporting period
Allocated transaction price expected
to be recognised as revenue 77,168 44,052
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Other Operating Income
Notes to the Consolidated Financial Statements / Note 7
Other operating income
EUR thousand 2021 2020
Capital gains on sale of property,
plant and equipment 930 195
Sale of Handling business
(*
900 -
Rents 986 984
Government grants 716 664
Insurance compensation 1 3
Other income 751 482
Other operating income total 4,284 2,329
(* In order to boost internal efficiency, Glaston divested its glass handling
business to Cimec Oy on 30 September.
In this connection, the companies signed a distribution agreement for the handling devices and
Glaston will continue to offer the handling devices under the Glaston brand to its customers. The
divestment will enable increased capacity for the insulating glass business at the Neuhausen-Ham-
berg facility. The divestment did not have any impact on personnel.
Government grants
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 sup-
port 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.
2020
Glaston Group was granted four government grants related to the COVID-19 pan-
demic in 2020.
Glaston Finland Oy was granted the State Treasury's business cost support of EUR
132 thousand. The aid was granted from 1 April to 31 May to companies whose
turnover had declined due to the COVID-19 pandemic.
Glaston Finland Oy was granted a total of EUR 120 thousand from Business Fin-
land's development and feasibility study financing.
The Australian branch office of Glaston Finland Oy was granted a cost subsidy of
AUD 58 thousand.
Glaston UK Ltd was granted a discretionary cost subsidy of GBP 10 thousand.
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Materials and Other Operating Expenses
Notes to the Consolidated Financial Statements / Note 8
EUR thousand 2021 2020
Materials
Materials and supplies, purchases during the period -82,916 -65,509
Change in inventories of materials and supplies -48 355
Total materials -82,964 -65,155
Other operating expenses
Leases -3,184 -3,021
Losses on sale of property, plant and equipment -5 -15
Subcontracting and maintenance -4,331 -4,674
Commissions -1,576 -1,645
Freight expenses -5,200 -3,294
Travel expenses -3,883 -3,414
External services, not production related -3,274 -3,149
IT, internet and phone -5,948 -5,966
Electricity, heating -1,214 -1,298
Marketing expenses -845 -510
Other expenses -4,131 -3,202
Total other operating expenses -33,590 -30,188
Fees for professional services rendered by auditors
Auditing, KPMG -321 -325
Auditing, EY - -51
Auditing, other companies -17 -138
Other services -9 -72
Tax advisory -140 -108
Tot al -486 -693
The auditor of Glaston Group during the financial years of 2021 and 2020 has been KPMG.
EUR thousand 2021 2020
Research and development costs
Recognized in profit or loss -5,116 -4,746
Amortization of capitalized development costs during the
reporting period -1,335 -1,078
Tot al -6,450 -5,823
As a percentage of net sales 3.5% 3.4%
Capitalized development costs during the reporting
period, total 1,840 1,695
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Employee Benefits and Number of Personnel
Notes to the Consolidated Financial Statements / Note 9
EUR thousand 2021 2020
Employee benefits
Wages and salaries 48,579 44,935
Pension expenses 3,789 3,556
Other personnel expenses 6,003 5,323
Total personnel expenses 58,371 53,815
Share-based incentive plans are described in more detail in Note 28 to the
consolidated financial statements.
Pension expenses
Defined benefit plans 231 316
Defined contribution plans 3,558 3,240
Total pension expenses 3,789 3,556
Pension benefits are presented in more detail in Note 19 to the consolidated
financial statements.
Number of personnel
Number of personnel, average 731 74 4
Personnel in Finland, end of the period 184 169
Personnel outside Finland, end of the period 566 554
Tot al 750 723
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Financial Income and Expenses
Notes to the Consolidated Financial Statements / Note 10
EUR thousand 2021 2020
Interest income
Interest income on loans and receivables 333 185
Total interest income 333 185
Dividend income
Dividend income measured at fair value through other
comprehensive income 0 9
Interest expenses
Interest expenses on financial liabilities measured at
amortized cost -1,363 -1,288
Interest expenses on lease liabilities -469 -486
Other interest expenses -10 -103
Total interest expenses -1,841 -1,877
Other financial expenses
On bank fees -223 -214
Currency derivatives financial -2 18
Guarantee expenses -362 -345
Impairment losses of loan receivables
(
* -1,869 -221
Other financial expenses -88 -98
Total other financial expenses -2,544 -860
Foreign exchange differences, net
On financial liabilities measured at amortized cost -113 -67
On loans and receivables 218 -149
Other foreign exchange gains and losses 11 -2
Total foreign exchange differences 116 -218
Total financial income and expenses in financial items -3,936 -2,762
EUR thousand 2021 2020
Net foreign exchange differences in operating result
Net sales -741 655
Purchases 450 -247
Other operating expenses 54 -59
Tot al -237 350
Derivatives recognized in profit or loss
Currency derivatives, hedge accounting
Realized currency derivatives recognized in net sales -574 -275
Tot al -574 -275
Recognized in other comprehensive income
Fair value changes of financial assets measured at fair value
through other comprehensive income -2,834 -120
Total in other comprehensive income -2,834 -120
Borrowing costs were not capitalized in Glaston Group in 2021 or 2020 as Glaston
has not had any qualifying assets as defined in IAS 23 Borrowing Costs.
Impairment losses on trade receivables are presented in Note 17.
(*
Glaston wrote off balance sheet items related to the Heliotrope partnership, Stock exchange
release 30.11.2021
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Income Taxes
Notes to the Consolidated Financial Statements / Note 11
EUR thousand 2021 2020
Income tax charge in income statement
Current income tax charge -1,142 -1,205
Adjustments in respect of current income tax of
previous years 309 67
Deferred tax charge 74 6 -805
Other 38 -218
Total income tax charge -49 -2,161
Income taxes recognized in other comprehensive
income and in equity
Deferred taxes
Share-based incentive plan recognized in equity -34 -9
Actuarial gains and losses arising from defined benefit plans -567 276
Fair value changes of financial assets measured at fair value
through other comprehensive income - -1
Total taxes recognized in other comprehensive income
and in equity -601 266
EUR thousand 2021 2020
Reconciliation of income tax expense calculated
at statutory tax rates with income tax expense in
the income statement
Profit before taxes 1,160 -3,302
Tax at the tax rate applicable to the parent -232 660
Difference due to different tax rates of foreign subsidiaries -494 -357
Tax exempt income and non-deductible expenses -467 -2,181
Losses, where no deferred tax benefit is recognized -1,676 -1,335
Deferred taxes recognized during the reporting period in
respect of previous years' temporary differences 727 -202
Withholding taxes and adjustments in respect of current
income tax of previous periods 347 58
Use of losses for which deferred tax has not been
recognized 812 1,195
Deferred tax assets recognized in respect of confirmed
losses in previous years 935 -
Income taxes in the income statement -49 -2,161
Effective tax rate 4% -65%
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The Group companies have tax
losses totalling EUR 40.1 (47.8) 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 regard-
ing the extent to which they can be
used. Tax losses expire in the period
2022-2031. Some of the losses do not
have an expiration date. Over the next
two years, the losses will expire by
approximately EUR 7 million.
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. 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 2021 or 2020 of the
undistributed earnings of Finnish or
foreign subsidiaries as the majority
of such earnings can be transferred
to the owner without any tax conse-
quences.
EUR thousand 2021 2020
Tax assets and tax liabilities
Deferred tax assets 2,643 1,625
Assets for current tax 137 3 51
Deferred tax liabilities 9,263 7,764
Liabilities for current tax 763 886
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Reconciliation of deferred tax assets and deferred tax liabilities 2021
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 - - 1,239
Deferred tax assets in statement of financial position 1,625 78 965 -25 - 2,643
Other temporary differences consist of expenses which were not tax deductible in the reporting period, but will be tax deductible in future.
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
Deferred tax liabilities in statement of financial position 7,764 33 219 -7 1,253 9,263
Other temporary differences consist of, among other things, differences between local and IFRS accounting principles, which create timing differences in recognizing
revenue and expenses.
Total change in deferred taxes in income statement (- tax expense) 74 6
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Reconciliation of deferred tax assets and deferred tax liabilities 2020
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 91 - 45 - - 137
Confirmed tax losses carried forward 800 - -200 - - 600
Share-based payments - - - -6 - -6
Other temporary differences 364 -191 721 - - 894
Deferred tax assets in statement of financial position 1,256 -191 567 -6 - 1,625
Other temporary differences consist of expenses which were not tax deductible in the reporting period, but will be tax deductible in future.
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 -411 - 59 - - -351
Defined benefit employee benefits -401 5 69 - -276 -603
Fair value changes of financial assets 47 - - - -48 -1
PPA allocation 5,871 - - - - 5,871
Other temporary differences 1,563 -28 1,244 70 - 2,849
Deferred tax liabilities in statement of financial position 6,670 -23 1,372 70 -324 7,764
Other temporary differences consist of, among other things, differences between local and IFRS accounting principles, which create timing differences in recognizing
revenue and expenses.
Total change in deferred taxes in income statement (- tax expense) -805
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Depreciation, Amortization and Impairment of Assets
Notes to the Consolidated Financial Statements / Note 12
EUR thousand 2021 2020
Depreciation and amortization
Intangible assets
Intangible rights 2,863 2,830
Capitalized development expenditure 1,338 1,090
Property, plant and equipment
Buildings and constructions 2,003 2,116
Machinery and equipment 1,611 1,909
Other tangible assets 122 172
Total depreciation and amortization 7,937 8,116
Impairment losses
Property, plant and equipment
Machinery and equipment -12 -10
Total impairment losses -12 -10
Total depreciation, amortization and impairment 7,924 8,107
Impairment of assets
Goodwill and intangible assets with
indefinite useful life are tested for
impairment annually in accordance
with IAS 36. Glaston does not have
other intangible assets than goodwill
with indefinite useful life and which
are not amortized. Intangible assets
not yet in use are also tested during
the reporting period for impairment.
Impairment testing is performed also
always when there is indication that
the recoverable amount of an asset or
cash generating unit is lower than its
carrying amount.
Glaston's cash generating units are
Heat Treatment Technologies, Insulat-
ing Glass Technologies and Automo-
tive Glass Technologies.
Due to the changes in segment
reporting and re-organization the
cash-generating units Heat Treat-
ment Service and Heat Treatment
Machines were combined into a single
cash-generating unit Heat Treatment
Technologies unit on 1 January 2021.
CGUs are combined as the cash flow
they generate is not independent of
each other. The units use common
resources and have a common cus-
tomer base. The cash flows generated
by new combined Heat Treatment
Technologies CGU are largely inde-
pendent of the cash flows generated
by other assets or groups of assets.
Goodwill has been tested for impair-
ment by comparing the recoverable
amount of the cash generating unit, to
which the goodwill has been allocated,
with the carrying amount of the cash
generating unit. Impairment loss is
recorded if the recoverable amount
is lower than the carrying amount.
Consistent methods have been used in
testing property, plant and equipment
and intangible assets. If the asset has
been classified as held for sale, the
recoverable amount used is the fair
value of the asset less costs of sale.
The recoverable amount of a cash
generating unit is its value in use, based
on its discounted future cash flows.
These cash flows are based on the
forecasts and estimates approved
by the management. Forecasts and
estimates are used as a basis of the
future cash flows for a maximum of five
years. Cash flows have, however, been
adjusted so that the future cash flows
used in impairment testing exclude any
cash flows from uncommitted future
restructuring and cash flows arising
from improving or enhancing the
asset's performance. The cash flows
of restructuring programs, in which the
Group was committed at the date of
the testing, are included in testing.
Subsequent cash flows are esti-
mated by extrapolating the cash flow
estimates. Terminal values have been
calculated using Western European
long-range growth rate if Western
Europe has been considered to be the
main market area of the cash-gener-
ating unit. If the main market areas are
considered to have moved or to move
over to other areas, such as Asia or
other emerging markets, this growth
has been taken into account in termi-
nal value.
The assumptions used in impair-
ment calculations are mainly the same
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as in estimates. The assumptions, such
as for example market development
on short term and price development
of products, are based on past expe-
rience and information gathered from
external sources. Assumptions on
market development on longer term
are based on external sources, such as
market studies on development of flat
glass consumption. The new prod-
ucts are expected to receive good
response from customers and this
is expected to give Glaston a better
position on the market compared to
competitors. Restructuring measures
to improve cost structure have already
improved and will further improve
profitability.
The discount rate used in arriving at
the recoverable amount is the pre-
tax weighted average cost of capital,
which reflects the current market
assessment of time 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 determin-
ing the discount rate as well as Glas-
ton's cost of debt.
The most significant assumptions used
in value in use 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%
The most significant
assumptions used in
value in use calculations
in 2020
Heat
Treatment
Machines
Heat
Treatment
Services
Insulating
Glass
Technologies
Automotive
Glass
Technologies
Pre-tax discount rate 10.5% 11.9% 12.7% 10.7%
Long-term growth rate 1.0% 1.0% 1.0% 1.0%
Impairment testing of goodwill
Goodwill
EUR million
Cash generating unit
1 January,
2021
31 December,
2021
Heat Treatment Technologies 30.6 30.6
Insulating Glass Technologies 19.4 19.4
Automotive Glass Technologies 8.3 8.6
Tot al 58.3 58.6
Cash generating unit
1 January,
2020
31 December,
2020
Heat Treatment Machines 4.1 4.1
Heat Treatment Services 26.5 26.5
Insulating Glass Technologies 19.4 19.4
Automotive Glass Technologies 8.3 8.3
Tot al 58.3 58.3
There are no changes in the sources
of information used in determining
the discount rates. The importance of
the different geographical areas has
slightly changed due to the change
in the geographical focus of business.
This has had an impact on defining the
risk-free interest rates and country risk
premiums. The impact of the global
economic uncertainty on the level of
interest rates in different geographical
areas has affected the determination
of the discount rate.
Discount rates have been calculated
separately for each cash generating
unit and they can vary between the
units. The discount rate depends,
among other things, on the geograph-
cial allocation of cash flows as well as
the relative importance of these cash
flows. These can differ between the
cash generating units.
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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 9.4% 17.1%
Insulating Glass Technologies 9.0% 13.1%
Automotive Glass Technologies 9.1% 17.8%
Long-term growth rate
Value assigned to the
assumption Value Change
Heat Treatment Technologies 1.0% -14.1%
Insulating Glass Technologies 1.0% -5.7%
Automotive Glass Technologies 1.0% -16.5%
The costs of Heat Treatment Technol-
ogies business are estimated to be 91
per cent of the estimated net sales
during the testing period. Should the
costs be 7 percentage points higher,
the recoverable amount, other things
being equal, would equal the carrying
amount.
The costs of Insulationg Glass Tech-
nologies business are estimated to be
89 per cent of the estimated net sales
during the testing period. Should the
costs be 2 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 87 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.
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 reasonably 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
reasonably 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.
The recoverable amounts of these
cash generating units exceed their
carrying amounts by 89 per cent in
the Heat Treatment Technologies
business, by 52 in the Insulating Glass
Technologies business and by 100 per
cent in the Automotive Glass Tech-
nologies business.
Impairment of property, plant and
equipment and intangible assets and
reversal of impairment loss
In 2021 and in 2020, Glaston had no
impairment losses.
Glaston Annual Review 2021 120
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Financial review
Intangible Assets
Notes to the Consolidated Financial Statements / Note 13
Glaston has no other intangi-
ble assets than goodwill with
indefinite useful life. All intangi-
ble assets with the exception
of goodwill are amortized over
their useful lives.
EUR thousand
2021
Capitalized
development
expenditure
Intangible
rights Goodwill
Other
capitalized
expenditure
Advances
paid Total
Acquisition cost at beginning of year 23,123 25,657 52,067 503 3,590 104,940
Other increases 254 941 - - 2,017 3,212
Decreases - -212 - - -408 -620
Reclassifications and other changes 2,207 246 - - -2,492 -39
Exchange differences 78 241 277 - 51 648
Acquisition cost at end of year 25,662 26,872 52,345 503 2,758 108,140
Accumulated amortization and impairment at
beginning of year -20,926 -12,877 6,260 -503 - -28,045
Accumulated amortization relating to decreases and
transfers 32 211 - - - 24 4
Amortization during the reporting period -1,338 -2,863 - - - -4,200
Reclassifications and other changes -32 9 - - - -23
Exchange differences -71 -231 - - - -302
Accumulated amortization and impairment at end of year
-22,334 -15,749 6,260 -503 - -32,327
Carrying amount at end of year 3,328 11,123 58,605 0 2,758 75,813
2020
Acquisition cost at beginning of year 22,759 24,566 52,067 503 2,336 102,232
Other increases 55 116 - - 2,349 2,520
Reclassifications and other changes 331 1,036 - - -1,098 270
Exchange differences -21 -61 - - 2 -80
Acquisition cost at end of year 23,123 25,657 52,067 503 3,590 104,941
Accumulated amortization and impairment at
beginning of year -19,857 -10,074 6,260 -503 - -24,173
Amortization during the reporting period -1,090 -2,830 - - - -3,919
Reclassifications and other changes - -33 - - - -33
Exchange differences 20 60 - - - 81
Accumulated amortization and impairment at end of year
-20,926 -12,877 6,260 -503 - -28,046
Carrying amount at end of year 2,198 12,779 58,327 0 3,590 76,894
Glaston Annual Review 2021 121
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Property, Plant and Equipment
Notes to the Consolidated Financial Statements / Note 14
Glaston has given liens on chattel as
security for liabilities. These are pre-
sented in Note 26. At the end of 2021
and 2020,Glaston did not have any
pledged property, plant and equip-
ment or intangible assets as security
for liabilities.
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
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
At the end of 2021 and 2020, Glas-
ton had no contractual commitments
for the acquisition of property, plant
and equipment.
In 2021 or 2020, 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 2021 was EUR 0.3 million. Costs
related to investment property were
EUR 0.2 million.
Glaston Annual Review 2021 122
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Responsibility
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Financial review
EUR thousand
2020
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 5,910 28,448 2,601 19,769 588 1,092 58,407 17,702 76,109
Other increases - - - 360 30 456 847 857 1,704
Decreases - - - -887 - -87 -974 - -974
Reclassifications and other
changes - - - -500 113 -213 -600 -2,277 -2,877
Exchange differences - -57 -65 -158 -15 - -296 - -296
Acquisition cost at end of year 5,910 28,391 2,535 18,584 716 1,248 57,384 16,281 73,665
Accumulated depreciation and
impairment at
beginning of year - -17,201 -513 -15,580 -73 - -33,367 -9,254 -42,621
Accumulated depreciation
relating to decreases and
transfers - - - 569 - - 569 - 569
Depreciation during the
reporting period - -690 -134 -1,064 -172 - -2,061 -2,134 -4,195
Reclassifications and other
changes - - - 484 -80 - 404 2,020 2,423
Exchange differences - 34 15 135 12 - 197 - 197
Accumulated depreciation and
impairment at
end of year - -17,857 -632 -15,456 -313 - -34,259 -9,368 -43,627
Carrying amount at end of year 5,910 10,534 1,903 3,128 403 1,248 23,125 6,913 30,038
Carrying amount of machinery and equipment used in
production 31 December, 2021 2,736
Carrying amount of machinery and equipment used in
production 31 December, 2020 2,061
Glaston Annual Review 2021 123
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Other investments
Notes to the Consolidated Financial Statements / Note 15
Financial assets measured at fair value through other
comprehensive income
EUR thousand
2021
Shares and other
long-term investments
Carrying amount 1 January 2,906
Impairment
(*
-2,899
Carrying amount 31 December 7
2020
Shares and other
long-term investments
Carrying amount 1 January 3,078
Fair value changes recognized in other
comprehensive income -172
Carrying amount 31 December 2,906
Glaston’s long term financial assets
have been classified into assets
recognized at fair value through
other comprehensive income. The
classification depends on the busi-
ness model under which the financial
assets are managed as well as the
characteristics of the instrument’s
cash flows. A financial asset item is
(*
Glaston wrote off balance sheet items related to Heliotrope partnership, Stock exchange release
30.11.2021.
derecognized from the statement of
financial position when Glaston’s con-
tractual 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.
Inventories
Notes to the Consolidated Financial Statements / Note 16
EUR thousand 2021 2020
Inventories
Materials and supplies 15,554 15,290
Work in process 7,856 6,173
Finished goods 3,660 3,549
Advances paid 207 97
Total inventories 27,277 25,109
Impairment losses of inventory during the period -818 -937
Reversals of impairment losses of inventory during the period 545 394
Total -273 -543
Glaston Annual Review 2021 124
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Receivables
Notes to the Consolidated Financial Statements / Note 17
Receivables
EUR thousand 2021 2020
Trade receivables 12,503 14,645
Trade receivables, falling due after 12 months
(1
3 6
Total trade receivables 12,506 14,651
Finance leasing receivables 90 87
Finance leasing receivables, falling due after 12 months
(1
467 557
Prepaid expenses and accrued income 1,407 1,538
Prepaid expenses and accrued income,
falling due after 12 months
(1
139 128
Other receivables 2,959 1,228
Other receivables, falling due after 12 months
(1
2,325 2
Current loan receivables 156 222
Non-current loan receivables
(1
- 1,402
Total receivables 20,048 19,815
(1
In non-current assets
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 instruments
are disclosed in more detail in Note 25.
Credit quality of other receivables is
based on the debtors' payment history.
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
2021 12,506 9,322 2,103 840 170 72
2020 14,651 9,766 2,890 1,434 387 175
Allowance account of trade receiva-
bles is used based on expected credit
losses. 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 receiv-
ables 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 his-
tory of the customers and third party
credit reports.
Other receivables are not past due nor
impaired.
Each loan receivable has been indi-
vidually analyzed for a possible impair-
ment loss. These analyses are based on
the financial position and future cash
flows of the debtor. Debtors have no
external credit rating. In 2021, EUR 1.6 mil-
lion impairment loss was recognized.
Also the trade receivables past due
are analyzed both in 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 receiv-
able. 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 assess-
ment of the impairment of financial
assets based on expected credit
losses. The gross amount of impaired
trade receivables at the end of the
reporting period was EUR 1.6 (1.5) mil-
lion, and the impairment loss of these
receivables was EUR 1.4 (1.4) million.
Glaston Annual Review 2021 125
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If the counterparty of a trade
receivable is insolvent, the trade
receivable is individually determined
to be impaired even though the
Impairment losses of trade receivables and changes in allowance
account of trade receivables
EUR thousand
Allowance account 1 January, 2020 2,359
Exchange difference -179
Charge for the year 1,117
Utilized -1,651
Unused amounts reversed -292
Allowance account 31 December, 2020 1,354
Exchange difference 156
Charge for the year 801
Utilized -438
Unused amounts reversed -467
Allowance account 31 December, 2021 1,405
Impairment losses of trade receivables recognized in
profit or loss, net (- income)
2021 698
2020 703
2021 2020
Minimun
lease
receivables
Unearned
finance
income
Minimun
lease
receivables
Unearned
finance
income
Finance lease receivables
are due as follows
No later than 1 year 90 20 87 23
Later than 1 year and no later
than 5 years 394 47 381 60
Later than 5 years 89 4 193 11
Total finance lease
receivables 5 74 71 6 61 93
Present value of minimum
lease receivables 577 663
Finance lease receivables
trade receivable were not past due.
Otherwise the trade receivables not
past due are not determined to be
impaired.
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Total Comprehensive Income Included in Equity
Notes to the Consolidated Financial Statements / Note 18
2021
EUR thousand
Other restricted
equity reserves
Fair value
reserve
Retained
earnings
Cumulative
exchange
difference Total
Total other comprehensive income
Total exchange differences on translating foreign
operations - 8 26 1,344 1,378
Change in actuarial gains and losses - - 1,762 - 1,762
Taxes on actuarial gains and losses arising from defined
benefit plans - - -567 - -567
Fair value changes of financial assets measured at fair
value through comprehensive income - - -2,834 - -2,834
Hedging - -55 - - -55
Income taxes on fair value changes of financial assets
measured at fair value through comprehensive income - - - -
Other comprehensive income - -48 -1,613 1,344 -316
Gain /loss - - 1,111 - 1,111
Total comprehensive income - -48 -502 1,344 795
2020
Total other comprehensive income
Total exchange differences on translating foreign
operations -2 - -6 -627 -635
Change in actuarial gains and losses - - 1,565 - 1,565
Taxes on actuarial gains and losses arising from defined
benefit plans - - 276 - 276
Fair value changes of financial assets measured at fair
value through comprehensive income - -172 53 - -120
Hedging - -277 - - -277
Income taxes on fair value changes of financial assets
measured at fair value through comprehensive income - -1 - - -1
Other comprehensive income -2 -450 1,888 -627 809
Gain/loss - - -5,463 - -5,463
Total comprehensive income -2 -450 -3,575 -627 -4,654
Other restricted equity reserves
Other restricted equity funds
include restricted capital not
included in the share capital of
subsidiaries.
Fair value reserve
The fair value reserve includes
changes in the fair values of
investments measured at fair
value through other compre-
hensive 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.
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Pensions and Other Defined Long-term Employee Benefits
Notes to the Consolidated Financial Statements / Note 19
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 state-
ment was EUR 3.9 (3.2) million.
In addition to defined benefit
pensions, Glaston has no other long-
term defined employee benefits in
2021 and 2020.
EUR thousand 2021 2020
Present value of
unfunded obligations 20,380 20,026
Fair value of plan
assets 22,404 19,496
Total deficit of
defined benefit
pension plans 2,024 -530
Difference 2,024 -530
Amounts in the
statement of
financial position
Liabilities -6 -530
Assets 2,024 -
Net liability (asset +) 2,018 -530
EUR thousand
Present value
of obligation
Fair value on
plan assets Total
1.1.2020 18,513 16,720 1,793
Interest expense / income 81 80 1
Current service cost 58 52 6
Past service cost 857 - 857
Employee contributions - - -
Employer contributions 490 490 -
Benefits paid - 563 -563
Actuarial gains (-) / losses (+) -16 -16 -
Other gains (-) / losses (+) on settlement 41 - 41
Return on plan assets (excluding amounts included in the net
interest expense) 9 1,606 -1,597
31.12.2020 20,033 19,496 537
Amounts in the statement of
financial position relating to
defined benefit pension plans
Amounts in the statement of financial position relating to other long-term employee benefits
EUR thousand
Present value
of obligation
Fair value on
plan assets Total
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
Glaston Annual Review 2021 128
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EUR thousand 2021 2020
Cash and cash equivalents 672 585
Equity instruments 7,842 6,824
Debt instruments 7,170 6,239
Real estate 4,481 3,899
Other 2,240 1,950
Total plans assests 22,405 19,496
EUR thousand
Changes in
parameters 2021 2020
Discount rate - 0.25% 21,209 19,527
Discount rate + 0.25% 19,610 17,720
Interest rate on retirement savings
capital - 0.25% 20,112 18,307
Interest rate on retirement savings
capital + 0.25% 20,655 18,874
Salary increase - 0.25% 20,271 18,432
Salary increase + 0.25% 20,491 18,743
Life expectancy + 1 year 20,791 18,953
Life expectancy - 1 year 19,969 18,221
The pension foundation is able to
adapt the contribution and ben-
efits. Risk for the employer is the
case of underfunding that may
involve additional payments from the
employer.
2021
Defined
pension plans
2020
Defined
pension plans
Discount rate, % 0.40% 0.20%
Future salary increase, % 1.00% 1.00%
Duration in years 15.7 19.1
EUR thousand 2021 2020
Defined benefit pension obligation -6 -530
Plan assets 2,024 -
Surplus / deficit (-) 2,018 -530
Plan asset classes
Sensitivity analysis, defined benefit obligation
Actuarial assumptions
Amounts for the current and previous periods, defined benefit
pensions
The Group expects to contribute
EUR 570 thousand to its other long-
term employee benefit plans in 2022.
Glaston Annual Review 2021 129
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Interest-bearing Liabilities
Notes to the Consolidated Financial Statements / Note 20
EUR thousand 2021 2020
Loans from financial institutions 30,405 44,028
Lease liablities 6,882 6,620
Total non-current interest-bearing liabilities 37,287 50,648
1-2 years 2–3 years 3-5 years > 5 years Total
Loans from financial
institutions 30,405 - - - 30,405
Lease liablities 1,794 1,297 2,319 1,472 6,882
Tot al 32,199 1,297 2,319 1,472 37,287
EUR 30,405 44,028
Tot al 30,405 44,028
Loans from financial institutions 6,159 4,644
Lease liabilities 1,675 1,590
Total current interest-bearing liabilities 7,834 6,234
Non-current interest-bearing liabilities 37,287 50,648
Current interest-bearing liabilities 7,834 6,234
Cash -26,852 -23,259
Tot al 18,269 33,623
Group’s funding is mainly organized by
using the Facilitites Agreement signed
in March 2019.
Some of the Group’s loan agree-
ments include covenants and other
terms and conditions which are linked
to consolidated key figures. If the cov-
enant terms are not fulfilled, negotia-
1.1.2021 Cash flow*
Effective
rate and
Exchange
differences
Reclassi fi-
cation 31.12.2021
Non-current
interest-bearing
liabilities 50,648 -7,239 36 -6,159 37,287
Current interest-
bearing liabilities 6,234 -4,559 - 6,159 7,834
Tot al 56,882 -11,798 36 - 45,121
*Cash flow includes the changes of leasing agreements
Non-current interest-bearing liabilities
Maturity of long term interest bearing liabilities
Non-current liabilities by currency
Current interest-bearing liabilities
Interest-bearing net liabilities
tions with the lenders will be initiated.
These negotiations may lead to notice
of termination of financial agree-
ments. Covenant terms are described
in more detail in Note 3.
The liquidity and currency risk
related to interest-bearing debt is
described in more detail in Note 3.
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Leases
Notes to the Consolidated Financial Statements / Note 21
Leases in the balance sheet
EUR million
Right-of-use assets Buildings Vehicles Others Total
Carrying amount at
1 January 2020 7.5 0.6 0.4 8.4
Additions 0.1 0.6 0.1 0.9
Decrease -0.3 0.0 - -0.3
Depreciation expense -1.3 -0.5 -0.3 -2.1
Carrying amount at 31
December 2020 6.0 0.7 0.2 6.9
Additions 0.8 1.3 0.7 2.8
Decrease - -0.5 - -0.5
Depreciation expense -1.2 -0.5 -0.2 -1.9
Carrying amount at
31 December 2021 5.6 1.0 0.7 7.3
EUR million
Lease liabilities 2021 2020
Carrying amount at beginning
of the period 8.2 9.9
Additions 2.2 0.4
Interest expense 0.5 0.5
Rental payment -2.3 -2.6
Carrying amount at end
of the period 8.6 8.2
Leases in profit and loss statement
EUR million
2021 2020
Depreciation of right-of-use assets -1.9 -2.1
Interest expense on lease liabilities -0.5 -0.5
Low value lease expense -0.2 -0.2
Short-term lease expense -0.1 -0.1
Total amounts recognised in profit or loss -2.8 -2.9
The average lessee's borrowing rate applied to all lease
liabilities at the date initial application is 2.91%.
Maturity of lease liabilities is shown in Note 20.
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Provisions
Notes to the Consolidated Financial Statements / Note 22
Non-current provisions
EUR thousand
2021
Warranty
provision
Other
provisions Total
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
2020
Carrying amount 1 January 358 160 517
Reclassification -415 - -415
Increase in provisions 198 3 201
Provisions released during the
period - -40 -40
Carrying amount 31 December 141 122 263
2021
Warranty
provision
Restruc-
turing
provision
Other
provisions Total
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 2,164 177 141 2,482
2020
Carrying amount 1 January 3,270 258 387 3,916
Exchange difference -8 -47 -3 -58
Reclassification 141 - - 141
Increase in provisions 2,698 74 8 15 3,462
Provisions used during the period -1,293 -172 -177 -1,642
Provisions released during the period -2,206 - -80 -2,286
Carrying amount 31 December 2,602 787 142 3,531
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
The restructuring provision includes,
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 as the timing 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.
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
Glaston Annual Review 2021 132
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Interest-free Liabilities
Notes to the Consolidated Financial Statements / Note 23
EUR thousand 2021 2020
Trade payables 15,853 13,186
Advances received 36,334 40,142
Accrued expenses and deferred income 14,622 11,942
Other current interest-free liabilities 2,451 1,883
Total current interest-free liabilities 69,259 67,153
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 2021 133
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Financial Assets and Liabilities
Notes to the Consolidated Financial Statements / Note 24
EUR thousand
31 December, 2021 Note
Financial assets
measured at fair
value through other
comprehensive
income (*
Financial assets
and liabilities
at fair value
through profit
and loss (*
Loans and
receivables
Financial
liabilities at
amortized cost
Total
carrying
amounts
Total fair
value
Cash 3 - - 26,852 - 26,852 -
Trade receivables 17 - - 12,506 - 12,506 -
Other interest-free receivables 17 - - 3,183 - 3,183 -
Current loan receivables 17 - - 156 - 156 -
Other non-current interest-free
receivables 17 - - 2,325 - 2,325 -
Shares and oher long-term
investments 15 7 - - - 7 -
Non-current interest-bearing liabilities 20 - - - -37,287 -37,287 -36,384
Current interest-bearing liabilities 20 - - - -7,834 -7,834 -7,986
Trade payables 23 - - - -15,853 -15,853 -
Other current interest-free liabilities 23 - -663 - -1,788 -2,451 -
Tot al 7 -663 45,021 -62,762 -18,397 -44,370
*If the fair value is not mentioned separately, the carrying amount is equal to fair value.
Glaston Annual Review 2021 134
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31 December, 2020 Note
Financial assets
measured at fair
value through other
comprehensive
income (*
Financial assets
and liabilities
at fair value
through profit
and loss (*
Loans and
receivables
Financial
liabilities at
amortized cost
Total
carrying
amounts
Total fair
value
Cash 3 - - 23,259 - 23,259 -
Trade receivables 17 - - 14,651 - 14,651 -
Other interest-free receivables 17 - - 1,406 - 1,406 -
Receivables related to financial liabilities - - - 113 113 -
Current loan receivables 17 - - 222 - 222 -
Other non-current interest-free
receivables 17 - - 2 - 2 -
Non-current loan receivables 17 - - 1,402 - 1,402 -
Shares and oher long-term investments 15 2,906 - - - 2,906 -
Non-current interest-bearing liabilities 20 - - - -50,648 -50,648 -48,497
Current interest-bearing liabilities 20 - - - -6,234 -6,234 -6,163
Trade payables 23 - - - -13,186 -13,186 -
Other current interest-free liabilities 23 - -733 - -1,150 -1,883 -
Tot al 2,906 -733 40,942 -71,105 -27,991 -54,660
*If the fair value is not mentioned separately, the carrying amount is equal to fair value.
Glaston Annual Review 2021 135
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2021 2020
1 January 2,842 2,842
Impairment losses
(1
-2,842 -
31 December 0 2,842
(1
Glaston wrote off balance sheet items related to Heliotrope partnership, Stock exchange release 30.11.2021.
31.12.2021 31.12.2020
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets
Listed shares - - - - -0 - 8 8
Other long-term investments - - - - - - 2,834 2,834
Currency forward contracts - - - - - 310 - 310
Tot al - - - - -0 310 2,842 3,151
Liabilities
Finacial liabilities - -44,370 - -44,370 - -54,660 - -54,660
Currency forward contracts - -341 - -341 - - - -
Tot al - -44,711 - -44,711 - -54,660 - -54,660
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
Fair value measurement hierarchy, Level 3, changes during the reporting period
Fair value measurement hierarchy
Glaston Annual Review 2021 136
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Derivative Instruments
Notes to the Consolidated Financial Statements / Note 25
Glaston hedges foreign currency-de-
nominated sales and cash flows of
binding orders received with currency
forwards. In fulfilling the conditions of
hedge accounting, cash flow hedge
accounting under IFRS 9 is applied
with respect to currency derivatives.
Derivative instruments are used
only for hedging purposes. Nomi-
nal 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. Maturity of the agreement is
under 12 months.
Valuation methods of derivative
instruments are presented in the
Summary of Significant Account-
ing Policies and hedging principles
in Note 3.
2021 2020
EUR thousand Nominal value Fair value Nominal value Fair value
Currency forwards 19,195 -341 12,304 310
EUR thousand 2021 2020
Derivative instruments in the income statement
Items included in net sales -574 -275
Financial items -2 18
Derivative instruments in the statement of
financial position, receivables and liabilities
Accrued expenses and deferred income
Currency forwards 663 733
Nominal and fair values of derivative instruments
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Contingencies
Notes to the Consolidated Financial Statements / Note 26
EUR thousand 2021 2020
Loans secured with mortgages or pledges
Loans from financial institutions 35,000 46,500
Liens on chattel 487,500 487,500
Carrying amount of pledged securities 25,986 25,982
Total mortgages, liens on chattel and pledged assets 513,486 513,482
Contingent liabilities
Liens on chattel
On behalf of own commitments 487,500 487,500
Securities pledged
On behalf of own commitments 25,986 25,982
Tot al 513,486 513,482
Liens on chattel are related to companies: Glaston Services Ltd. Oy, Glaston Fin-
land Oy, Glaston Emerging Technologies Oy and Uniglass Engineering Oy.
All companies are jointly responsible for the debts of Glaston Group.
Guarantees
On behalf of own commitments 8,629 8,958
On behalf of others 168 56
Tot al 8,796 9,014
Total contingent liabilities 522,282 522,495
Operating leases as a lessor
Glaston has some operating lease agreements in which the Group acts as a les-
sor. The minimum future payments to be received from non-cancellable operat-
ing lease agreements are presented in the table below.
2021 2020
Minimum future payments of operating leases
Maturity within one year 883 873
Maturity later than one year and not later than five years 1,675 1,689
Maturity later than five years 81 213
Total minimum future payments of operating leases 2,639 2,776
Other contingent liabilities and litigations
At year end Glaston Tianjin Co. Ltd. has endorsed EUR 1.0 million of bank drafts.
The expiring dates of the bank drafts are during the first half of year 2022.
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.
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Shares and Holdings
Notes to the Consolidated Financial Statements / Note 27
Group companies
Group
holding %
Parent
holding %
Glaston Oyj Abp Helsinki Finland
Uniglass Engineering Oy Tampere Finland 100,0% 100,0%
Glaston Services Ltd. Oy Tampere Finland 100,0% 100,0%
Glaston Emerging Technologies Oy Tampere Finland 100,0%
Glaston Finland Oy Tampere Finland 100,0%
Glaston International Oy Tampere Finland 100,0%
Glaston America, Inc. Mount Laurel, NJ United States 100,0%
Glaston UK Ltd. * Shropshire United Kingdom 100,0%
Glaston France S.A.R.L. Paris France 100,0%
Glaston Singapore Pte. Ltd. Singapore Singapore 100,0%
Glaston Tianjin Co. Ltd. Tianjin China 100,0%
Glaston Management (Shanghai) Co. Ltd. Shanghai China 100,0%
Glaston China Co. Ltd. Tianjin China 100,0%
LLC Glaston Moscow Russia 100,0%
Glaston Brasil Ltda São Paulo Brasil 100,0%
Glaston Hong Kong Ltd. Hong Kong China 100,0%
Glaston Germany GmbH ** Neuhausen-Hamberg Germany 100,0%
OOO Bystronic Steklo RUS Moscow Russia 100,0%
Bystronic glass Machinery (Shanghai) Co. Ltd. Shanghai China 100,0%
Glaston Swizerland AG Bützberg Switzerland 100,0%
Bystronic glass UK Ltd. Shropshire United Kingdom 100,0%
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
Changes in subsidiaries in 2020
• Bystronic Asia Pte. Ltd. was merged
to Glaston Singapore Pte. Ltd in
September 2020
• Glaston Germany GmbH was merged
to Bystronic Lenhardt GmbH in
September 2020
• Bystronic Lenhardt GmbH name
was changed to Glaston Germany
GmbH in September 2020
• Bystronic Machinen AG name was
changed to Glaston Switzerland in
September 2020
* For the year ending 31 December 2021, Glaston UK Ltd and Bystronic glass UK Ltd were entitled to exemption from audit
under section 479A of the UK Companies Act 2006.
**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 statements 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.
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Share-based Incentive Plans
Notes to the Consolidated Financial Statements / Note 28
Share-based incentive plans
Glaston's share-based incentive plans
are directed to the Group's key per-
sonnel 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 incen-
tive plans have been recognized in
profit or loss during the vesting peri-
ods.
The cash-settled portion of the
incentive plans is recorded as a liability
in the statement of financial position,
if it has not been paid. Glaston has
recorded the personnel costs arising
from the share-based incentive plans
to the extent it is liable to pay them.
On 8 August 2019, the Board of
Directors of Glaston Corporation
approved a new share-based incen-
tive plan for the Group key employees.
The aim of the new 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
2019–2023 comprises three per-
formance periods, calendar years
2019–2021, 2020–2022 and 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 each member of
the Executive Management 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 number 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 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 per-
formance 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 proportion is
intended to cover taxes and tax-re-
lated 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 17 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 potential reward of the perfor-
mance period 2020–2022 will be
based on Glaston Group’s compa-
rable EBITA and average net gearing
during a period of 1 January 2020—31
December 2022. If the performance
levels of the performance criteria for
the performance period 2020–2022
are achieved in full, the payable
rewards correspond to a maximum
total of 500,000 Glaston Corporation
shares, including also the proportion
to be paid in cash.
The potential reward from the
performance period 2020–2022 will
be paid in 2023 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
Glaston Annual Review 2021 140
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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 17 key employ-
ees, including the CEO and members
Basic information of the share-based plans 2021-2023 2020-2022 2019-2021
Grant date 23 June 2021 14 February 2020 13 September 2019
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 500,000 shares 198,000 shares
Total amount of shares at the end of the performance
period (including cash) - - 24,750 shares
Performance period begins 1 January 2021 1 January, 2020 1 January, 2019
Performance period ends 31 December 2023 31 December, 2022 31 December, 2021
End of restriction period/ payment 1 April 2024 1 April, 2023 1 April, 2022
Vesting conditions
Group's comparable EBITA and
Service Net Sales
Group's comparable EBITA and
average net gearing
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 2021 17 17 6
Effect on the profit or loss for the period and on financial position 2021 2020
Effect on the result of the reporting period, EUR thousand 206 30
of the Executive Management Group,
belong to the target group of the plan
in the performance period 2020–2022.
Performance Period 2019—2021
The reward of the performance
period 2019–2021 is based on the
Glaston Group’s comparable EBITA
and average net gearing during a
period of 1 January 2019—31 December
2021. The performance levels of the
performance criteria for the perfor-
mance period 2019–2021 are partly
achieved and the payable rewards
correspond to a maximum total of
24,750 Glaston Corporation shares,
including also the proportion to be
paid in cash.
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Related Parties
Notes to the Consolidated Financial Statements / Note 29
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 (Glaston Corporation), and its
subsidiaries. Also the shareholders,
which have significant influence in
Glaston through shareholding, are
considered to be related parties, as
well as the companies controlled by
these shareholders.
Remuneration of the Executive Management Group, accrual based
EUR thousand 2021 2020
CEO Anders Dahlblom 1.1.2021-31.12.2021
Salaries 341,280 -
Bonuses 228,826 -
Share based benefit 126,500 -
Total 696,606 -
Fringe benefits 14,164 -
Tot al 710,770 -
Statutory pension payments (Finnish TyEL or similar plan) 124,521
Voluntary pension payments 38,880
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 commer-
cial terms in transactions with associ-
ates and other related parties as with
third parties.
Total accrual based remuneration
of the Board of Directors and the
Executive Management Group was
EUR 2,851 (2,024) thousand.
Remuneration of the Executive Management Group, accrual based
EUR thousand 2021 2020
CEO Arto Metsänen 1.1.2020-31.5.2020
Salaries - 187,963
Bonuses - -
Share based benefit - -
Total - 187,963
Fringe benefits - 100
Tot al - 188,063
Statutory pension payments (Finnish TyEL or similar plan) - 35,648
Voluntary pension payments - 23,942
Acting CEO Sasu Koivumäki 1.6.2020- 31.12.2020
Salaries - 153,600
Bonuses - 73,335
Share based benefit - -
Total - 226,935
Fringe benefits - 7,623
Tot al - 234,558
Statutory pension payments (Finnish TyEL or similar plan) - 10,400
Voluntary pension payments - 20,405
Total other Executive Management Group
Salaries 1,274,287 1,079,846
Bonuses 426,775 158,687
Share based benefit 31,680 -
Total 1,732,742 1,238,533
Fringe benefits 53,572 32,040
Tot al 1,786,314 1,270,573
Statutory pension payments (Finnish TyEL or similar plan) 197,941 156,100
Voluntary pension payments 37,659 21,195
Glaston Annual Review 2021 142
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The remuneration includes salaries
only for the period of member-
ship of the Executive Management
Group.
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 28). 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
2021 2020
EUR annual fee meeting fee annual fee meeting fee
Veli-Matti Reinikkala, Chairman of
the Board of Directors
(1
60,000 15,400 15,000 1,000
Sebastian Bondestam, Deputy
Chairman of the Board of Directors 47,500 8,000 47,500 6,250
Sarlotta Narjus 30,000 8,000 30,000 10,250
Antti Kaunonen 30,000 8,000 30,000 10,750
Arja Talma
(2
30,000 6,000 - -
Tero Telaranta 30,000 7,500 30,000 6,750
Michael Willome
(3
30,000 8,000 22,500 2,750
Teuvo Salminen
(4
17,500 1,800 70,000 9,300
Kai Mäenpää
(5
15,000 1,000 30,000 9,250
Tot al 290,000 63,700 275,000 56,300
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 Chairman of Glaston Corpora-
tion's Board of Directors was paid EUR
60,000 (60,000) annually, the Deputy
Chairman EUR 40,000 (40,000) annu-
ally and each of the members EUR
30,000 (30,000) annually. In addition, a
meeting fee of EUR 800 per meeting
held in the Chairman's home coun-
try and EUR 1,500 per meeting held
elsewhere were paid to the Chair-
man. The other members of Glaston
Corporation's Board of Directors were
paid EUR 500 per meeting held in the
Board member's home country and
EUR 1,000 per meeting held else-
where. For the Board Meeting, which is
hold per capsulam, will be paid half of
the regular fee. 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 member has partici-
pated, EUR 500 per meeting held in the
Board member's home country and
EUR 1,000 per meeting held elsewhere.
In addition, to the Chairman of Audit
Committee was paid an annual fee
of EUR 10,000 and to the Chairman of
Compensation Committee an annual
fee of EUR 7,500.
Glaston Annual Review 2021 143
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Glaston shares
31.12.2021 31.12.2020
Veli-Matti Reinikkala, Chairman of the
Board of Directors
(1
500,000 180,000
Sebastian Bondestam, Deputy Chairman
of the Board of Directors 35,137 21,344
Sarlotta Narjus - -
Antti Kaunonen 86,349 76,005
Arja Talma
(2
10,344
Tero Telaranta 10,720 376
Michael Willome
(3
- -
Teuvo Salminen
(4
306,057
Kai Mäenpää
(5
15,000
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
31.12.2021 31.12.2020
Anders Dahlblom, CEO
(6
420,000 -
Sasu Koivumäki 89,979 89,979
Miika Äppelqvist
(7
6,815 6,815
Päivi Lindqvist 38,680 38,680
Artturi Mäki 4,731 4,731
Robert Prange 30,000 15,000
Taina Tirkkonen 27,500 27,500
Hannele Anonen
(8
-
Dietmar Walz - -
Juha Liettyä
(9
91,665
Arto Metsänen
(10
660,000
(1
Member of the Board of Directors from 4.9.2020
(2
Member of the Board of Directors from 13.4.2021
(3
Member of the Board of Directors from 28.5.2020
(4
Member of the Board of Directors until 13.4.2021
(5
Member of the Board of Directors until 13.4.2021
(6
CEO and Member of the Executive Management Group from 1.1.2021
(7
Member of the Executive Management Group from 1.12.2020
(8
Member of the Executive Management Group from 1.8.2021
(9
Member of the Executive Management Group until 30.11.2020
(10
CEO and Member of the Executive Management Group until 1.6.2020
Executive Management Group, share ownership*
Glaston Annual Review 2021 144
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Events after End of the Reporting Period
Notes to the Consolidated Financial Statements / Note 30
Stock exchange release
27 January 2022
The Board of Directors of Glaston Cor-
poration has resolved on the share-
based incentive plan 2022−2026 for
the Group key employees in accord-
ance 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.
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 com-
pany’s shares he or she holds corre-
sponds to the value of his or her gross
annual base salary. Such number of
shares must be held as long as
such person’s employment or service
in a company belonging to the Group
Company continues.
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Income Statement of the Parent Company (FAS)
Parent Company Financial Statements
1 January - 31 December
EUR thousand Note 2021 2020
Net sales 2 4,098 2,812
Other operating income 3 5,083 4,822
Personnel expenses 4 -2,801 -2,101
Depreciation, amortization and impairment losses 5 -460 -443
Other operating expenses 6 -10,543 -7,118
Operating profit / loss -4,624 -2,027
Net financial items 7 -716 -1,126
Profit /loss before appropriations and taxes -5,340 -3,152
Appropriations 8 -2 2
Income taxes 9 300 -1
Profit / loss for the financial year -5,042 -3,152
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Balance Sheet of the Parent Company (FAS)
at 31 December
EUR thousand Note 2021 2020
Assets
Non-current assets
Intangible assets 10 1,277 1,526
Tangible assets 10 22 30
Subordinated loan receivable Group
Companies 12,13 36,846 36,846
Investments 11,12 17,211 17,211
Non-current assets, total 55,356 55,614
Current assets
Non-current receivables 13 78,000 77,700
Current receivables 13 12,421 17,189
Cash and bank 20,895 15,127
Current assets, total 111,316 110,017
Total assets 166,673 165,630
at 31 December
EUR thousand Note 2021 2020
Equity and liabilities
Equity
Share capital 12,696 12,696
Reserve for invested unrestricted equity 112,584 114,270
Retained earnings -42,123 -38,972
Profit / loss for the financial year -5,042 -3,152
Total equity 14 78,115 84,843
Accumulated appropriations 15 100 97
Liabilities
Non-current liabilities 16 31,006 42,507
Current liabilities 17 57,453 38,183
Total liabilities 88,458 80,690
Total equity and liabilities 166,673 165,630
Parent Company Financial Statements
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Parent Company Cash Flow Statement (FAS)
EUR thousand 2021 2020
Cash flow from operating activities
Profit / loss for the financial period -5,042 -3,152
Adjustments:
Income taxes for the period
Deferred taxes
Financial income and expenses
Depreciation, amortization and impairment
Proceeds from disposal of tangible and intangible assets
Other adjustments
-300 1
2 -2
716 1 126
460 443
51
-2 817
-73
-36
Cash flow before change in net working capital -6,929 -1,694
Change in net working capital
Change in current interest-free receivables
Change in current interest-free liabilities
5,306 426
19,558 3,561
Cash flow from operating activities before financial
items and taxes 17,935 2,294
Interests paid and payments made for other financial
items and income taxes
Interests and other financial expenses paid
Dividends received
Interest received
Income taxes paid
-2,317 -2,557
- 3
2,716 220
- -1
Cash flow from operating activities before
extraordinary items 18,334 -41
Cash flow from operating activities 18,334 -41
EUR thousand 2021 2020
Cash flow from investing activities
Investments in tangible and intangible assets -254 -756
Proceeds from disposal of tangible and intangible assets -0 349
Cash flow from investing activities -254 -407
Cash flow from financing activities
Drawn-down of non-current loans - 7,500
Repayments of non current loans -7,500 -
Change in current intra-group receivables 994 -
Change in current intra-group loans - 6,299
Drawn-down of current loans -4,121 -1,121
Repayments of current loans -1,686 -
Cash flow from financing activities -12,313 12,677
Change in cash and cash equivalents 5,767 12,229
Cash and cash equivalents at the beginning of the period 15,127 2,898
Cash and cash equivalents at the end of the period 20,895 15,127
Change in cash and cash equivalents 5,767 12,229
Parent Company Financial Statements
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Summary of Significant
Accounting Policies
Notes to Parent Company Financial Statements (FAS) / 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
The parent’s appropriations consist
of group contributions received from
and given to subsidiaries.
Untaxed Reserves
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.
Glaston Annual Review 2021 149
Glaston 2021
Responsibility
Governance
Financial review
Net Sales
Notes to Parent Company Financial Statements (FAS) / Note 2
EUR thousand 2021 2020
Net sales by business
Manufacturing industry 4,098 2,812
Net sales by country by destination
Finland 465 383
Other EMEA 2,971 2,075
Americas 634 340
Asia 28 14
Tot al 4,098 2,812
EMEA = Europe, the Middle East and Africa
Americas = North, Central and South America
Asia = China and the rest of the Asia-Pacific area
Notes to Parent Company Financial Statements (FAS) / Note 3
Other Operating Income
EUR thousand 2021 2020
Charges from group companies 5,083 4,749
Proceeds from sale of business operations - 63
Proceeds from sale of fixed assets - 10
Other operating income, total 5,083 4,822
Personnel Expenses
Notes to Parent Company Financial Statements (FAS) / Note 4
EUR thousand 2021 2020
Salaries and fees -2,367 -1,740
Pension expenses -377 -323
Other personnel expenses -58 -39
Tot al -2,801 -2,101
Salaries and remuneration paid to members of the
Board of Directors and Managing Director 1,064 854
Employees during financial year, average
White collar 13 10
Tot al 13 10
Notes to Parent Company Financial Statements (FAS) / Note 5
Depreciation, Amortization
and Impairment Losses
EUR thousand 2021 2020
Depreciation and amortization according to plan
Intangible assets
Intangible rights -314 -327
Other capitalized expenditure -138 -62
Tangible assets
Machinery and equipment -8 -53
Total depreciation and amortization according to plan -460 -443
Total depreciation and amortization according
to plan and impairment losses -460 -443
Glaston Annual Review 2021 150
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Other Operating Expenses
Notes to Parent Company Financial Statements (FAS) / Note 6
EUR thousand 2021 2020
Rents -198 -211
Information and communications technology expenses -5,107 -5,002
Travel expenses -37 -47
Intra-group credit loss -2,839 -35
Other expenses -2,363 -1,822
Other operating expenses, total -10,543 -7,118
Fees paid to auditors
Fees paid to principal auditors for audit -57 -55
Fees paid to principal auditors for other services -4 -33
Tot al -61 -88
EUR thousand 2021 2020
Dividend income
From external parties - 3
Dividend income, total - 3
Interest and other financial income
From group companies 1,432 1,511
From external parties 91 29
Interest and other financial income 1,522 1,540
Interest and other financial income, total 1,522 1,543
Interest and other financial expenses
To group companies -415 -535
Impairment losses of of intra-group receivables - -
To external parties -1,823 -2,133
Interest and other financial expenses, total -2,239 -2,668
Net financial items, total -716 -1,126
Other financial income and expenses include foreign
exchange gains and losses (net) 73 -13
Net Financial Items
Notes to Parent Company Financial Statements (FAS) / Note 7
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Appropriations
Notes to Parent Company Financial Statements (FAS) / Note 8
EUR thousand 2021 2020
Difference between depreciation and amortization according
to plan and depreciation and amortization in taxation -2 2
Tot al -2 2
Notes to Parent Company Financial Statements (FAS) / Note 9
Income Taxes
EUR thousand 2021 2020
Income taxes for operations - -1
Change in deferred tax assets 300 -
Tot al 300 -1
Glaston Annual Review 2021 152
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Fixed Assets
Notes to Parent Company Financial Statements (FAS) / Note 10
Intangible assets
EUR thousand Intangible rights
Other capitalized
expenditure
Advance payments and
investments in progress Total
Acquisition cost 1 January, 2021 5,404 1,284 118 6,806
Additions - - 225 225
Disposals - - -22 -22
Reclassifications 255 - -255 -
Acquisition cost 31 December, 2021 5,659 1,284 66 7,010
Accumulated amortizations and impairment losses 1 January, 2021 -4,614 -666 - -5,280
Amortization of the period -314 -138 - -452
Accumulated amortizations and impairment losses 31 December, 2021 -4,928 -805 - -5,732
Carrying amount at 31 December, 2021 732 480 66 1,277
Carrying amount at 31 December, 2020 790 618 118 1,526
Tangible assets
EUR thousand Intangible rights
Other capitalized
expenditure
Advance payments and
investments in progress Total
Acquisition cost 1 January, 2021 305 129 -0 434
Additions - - - -
Disposals - - - -
Transfers between items - - - -
Adjustment to acquisition cost - - -
Acquisition cost 31 December, 2021 305 129 -0 434
Accumulated depreciations and impairment losses 1 January, 2021 -285 -119 - -404
Accumulated depreciations of disposals and transfers - - - -
Depreciation for the period -8 - - -8
Adjustment to cumulative depreciations - - - -
Accumulated depreciations and impairment losses
31 December, 2021 -293 -119 - -412
Carrying amount 31 December, 2021 12 10 -0 22
Carrying amount at 31 December, 2020 20 10 - 30
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Financial review
Investments
Notes to Parent Company Financial Statements (FAS) / Note 11
EUR thousand
Shares
Group companies
Shares
Others
Subordinated
loan receivable
Group companies Tot al
Carrying amount at 1 January, 2021 17,204 8 36,846 54,058
Decrease - - - -
Carrying amount at 31 December, 2021 17,204 8 36,846 54,058
Notes to Parent Company Financial Statements (FAS) / Note 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
Tot al 17,204
Other
Other shares and holdings 8
Tot al 8
Glaston Annual Review 2021 154
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Receivables
Notes to Parent Company Financial Statements (FAS) / Note 13
EUR thousand 2021 2020
Non-current receivables
Receivables from external parties
Deferred tax assets 300 -
Total 300 -
Receivables from group companies
Loan receivables 77,700 77,700
Total 77,700 77,700
Non-current receivables, total 78,000 77,700
Current receivables
Receivables from external parties
Trade receivables 2 -
Other receivables 33 33
Prepaid expenses and accrued income 314 605
Total 349 638
Receivables from group companies
Trade receivables 2,660 5,211
Loan receivables 7,920 8,915
Accured interest receivables 1,341 2,347
Prepaid expenses and accrued income 151 79
Total 12,073 16,551
Current receivables, total 12,421 17,189
Relevant items of prepaid expenses and accrued income
Financial items 279 557
Other 186 126
Prepaid expenses and accrued income, total 465 683
EUR thousand 2021 2020
Share capital 1 January 12,696 12,696
Share capital 31 December 12,696 12,696
Reserve for invested unrestricted equity 1 January 114,270 114,270
Capital repayment -1,686 -
Reserve for invested unrestricted equity 31 December 112,584 114,270
Retained earnings 1 January -42,123 -38,972
Retained earnings 31 December -42,123 -38,972
Profit / loss for the financial year -5,042 -3,152
Equity at 31 December 78,115 84,843
Distributable funds at 31 December
Reserve for invested unrestricted equity 112,584 114,270
Retained earnings -42,123 -38,972
Profit / loss for the financial year -5,042 -3,152
Distributable funds 65,419 72,147
Equity
Notes to Parent Company Financial Statements (FAS) / Note 14
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Financial review
Accumulated
Appropriations
Notes to Parent Company Financial Statements (FAS) / Note 15
EUR thousand 2021 2020
Accumulated depreciation difference 1 January 97 100
Increase (+) / decrease (-) 2 -2
Accumulated depreciation difference 31 December 100 97
Notes to Parent Company Financial Statements (FAS) / Note 16
Non-current Liabilities
EUR thousand 2021 2020
Liabilities to external parties
Loans from financial institutions 31,000 42,500
Other liabilities 6 7
Liabilities to external parties, total 31,006 42,507
Non-current liabilities, total 31,006 42,507
Current Liabilities
Notes to Parent Company Financial Statements (FAS) / Note 17
EUR thousand 2021 2020
Liabilities to external parties
Loans from financial institutions 4,000 4,121
Trade payables 420 454
Other liabilities 94 44
Accrued expenses and deferred income 1,395 933
Liabilities to external parties, total 5,909 5,553
Liabilities to group companies
Other interest-bearing liabilities 51,497 32,596
Trade payables 46 35
Liabilities to group companies, total 51,544 32,631
Current liabilities, total 57,453 38,183
Accrued expenses and deferred income
Salary and other personnel expense accruals 953 299
Interests 222 391
Other 220 24 4
Accrued expenses and deferred income, total 1,395 933
The Group's funding and covenant terms are described in the Consolidated
Financial statement, Note 3.
Glaston Annual Review 2021 156
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Responsibility
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Financial review
Contingent Liabilities
Notes to Parent Company Financial Statements (FAS) / Note 18
EUR thousand 2021 2020
Leasing liabilities
Maturity within one year 56 30
Maturity later than one year 90 8
Tot al 145 38
The leasing agreements have normal terms.
Other rental liabilities
Maturity within one year 49 97
Maturity later than one year 0 40
Tot al 49 137
Pledges
On behalf of group companies 7,734 6,338
Loans secured with pledged assets and mortgages
Loans from financial institutions 35,000 46,500
Liens on chattel
On own behalf 97,500 97,500
Carrying amount of pledged securities 17,204 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 Services Ltd. Oy, Glaston Finland Oy,
Glaston Emerging Technologies Oy and Uniglass Engineering Oy.
Glaston Annual Review 2021 157
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Responsibility
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Financial review
Signatures for the Board of Directors’ Review
and Financial Statements
Helsinki, 14 February 2022
Veli-Matti Reinikkala
Chairman of the Board
Sebastian Bondestam
Deputy Chairman 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, 14 February 2022
KPMG Oy Ab
Authorised public accountants
Lotta Nurminen
Authorized Public Accountant, KHT
Glaston Annual Review 2021 158
Glaston 2021
Responsibility
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, 2021. 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 income state-
ment, balance sheet, statement of
cash flows and notes.
In our opinion
• 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 and Board of
Directors.
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 Respon-
sibilities 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
disclosed in note 8 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 influenced
by our application of materiality. The
materiality is determined based on
our professional judgement and is
used to determine the nature, timing
and extent of our audit procedures
and to evaluate the effect of identi-
fied 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 possible 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 signif-
icant risks of material misstatement
referred to in the EU Regulation 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
management bias that represented a
risk of material misstatement due to
fraud.
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Responsibility
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Financial review
The key audit matter How the matter was addressed in the audit
Revenue recognition (Note 1 Summary of Significant Accounting Policies, Note 2 Critical Accounting Estimates and Judgments and Note 6 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 perfor-
mance obligation and total estimated costs. Net sales for the reporting period
includes EUR 109.2 million revenue recognized over time representing 60 per-
cent 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 principles
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 1 Summary of Significant Accounting Policies, note 2 Critical Accounting Estimates and Judgments, note 12 Depreciation,
Amoritzation and Impairment of Assets and note 13 Intangible Assets)
Value of goodwill amounts to EUR 58.6 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 calculations, such as prof-
itability, 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 2021 160
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Responsibility
Governance
Financial review
Responsibilities of the Board of Direc-
tors 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 2021 161
Glaston 2021
Responsibility
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 2 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, 14 February 2022
KPMG OY AB
Lotta Nurminen
Authorised Public Accountant, KHT
Glaston Annual Review 2021 162
Glaston 2021
Responsibility
Governance
Financial review
Glaston Corporation
Lönnrotinkatu 11, 00120 Helsinki, 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 appliance 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 10 countries and its shares (GLA1V) are listed on Nasdaq Helsinki Ltd.
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 reasona-
ble assurance engagement on the
iXBRL marking up of the consolidated
financial statements for the year
ended 31 December, 2021, included in
the Glaston Corporation’s digital files
743700V3I7CLI3DJ8L62-2021-12-31-en.
zip prepared in accordance with the
requirements of Article 4 of EU Dele-
gated Regulation 2018/815 (ESEF RTS).
The Responsibility of the Board of
Directors and Managing Director
The Board of Directors and Man-
aging Director are responsible for
preparing the report of the Board of
Directors and financial statements
(ESEF financial statements) that com-
ply 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 consolidated finan-
cial statements included in the ESEF
financial statements with iXBRL tags
in accordance with Article 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
Control
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 ful-
filled our other ethical obligations in
accordance with these requirements.
The auditor applies International
Standard on Quality Control 1 and
accordingly maintains a comprehen-
sive system of quality control including
documented policies and procedures
regarding compliance with ethical
requirements, professional standards
and applicable legal and regulatory
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 consolidated financial state-
ments included in the ESEF finan-
cial statements are, in all material
respects, marked up with iXBRL tags
in accordance with Article 4 of the
ESEF RTS, and;
• the ESEF financial statements 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 consolidated
financial statements included in
the ESEF financial statements of
Glaston Corporation identified as
743700V3I7CLI3DJ8L62-2021-12-31-en.
zip for the year ended 31 December,
2021 are marked up, in all material
respects, in compliance with the ESEF
Regulatory Technical Standard.
Our audit opinion relating to the
consolidated financial statements
of Glaston Corporation for the year
ended 31 December, 2021 is set out in
our Auditor’s Report dated 18 March,
2022. In this report, we do not express
an audit opinion, review conclusion or
any other assurance conclusion on
the consolidated financial statements.
Tampere 18 March, 2022
KPMG OY AB
Lotta Nurminen
Authorised Public Accountant, KHT
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