ANNUAL
REVIEW
2023
Table of Contents
President and CEO's Review ..................................................... 3
Glaston sustainability report.....................................................5
Glaston’s value chain ..................................................................... 6
The frontrunner in glass processing .....................................7
Megatrends supporting sustainable business ............. 12
Glaston's sustainability and its management ...............13
UN Sustainable Development Goals..................................20
Responsible own activities........................................................21
Responsible sourcing .................................................................. 32
Responsible partner ....................................................................35
Responsible member of society ..........................................41
Corporate Governance Statement 2023 ......................... 43
Remuneration Report for Governing Bodies 2023 .......55
The Board of Directors’ Review 2023 .................................64
Per Share Data ................................................................................. 93
Financial Ratios ................................................................................94
Definitions of key ratios ..............................................................96
Consolidated Financial Statements ................................... 98
Consolidated Statement of Profit or Loss ......................99
Consolidated Statement of
Comprehensive Income ........................................................ 100
Consolidated Statement of Financial Position ........... 101
Consolidated Statement of Changes in Equity ........102
Consolidated Statement of Cash Flows .......................104
Supplemental Information for Statement
of Cash Flows .................................................................................105
General accounting policies .................................................106
Parent Company Financial Statements ........................179
Income Statement of the Parent
Company (FAS) ............................................................................179
Balance Sheet of the Parent Company (FAS) ..........180
Parent Company Cash Flow Statement (FAS) .......... 181
Notes to Parent Company Financial
Statements (FAS) ........................................................................182
Auditor’s Report ............................................................................192
Glaston 2023
Sustainability
Governance
Financial Review
The year 2023 was a year of steady
progress for Glaston. We are relent-
lessly working to reach our strategic
goals and especially the improvement
in profitability throughout the year was
a good achievement.
During the year the glass process-
ing equipment markets developed
unevenly. Despite the geopolitical ten-
sion and prevailing market uncertainty,
there are some early signs that the
Architectural glass processing equip-
ment market is slowly at some point
in 2024 starting to recover from the
low levels in 2023, and driven by China,
we expect the positive development
in the Mobility market to continue.
The full-year orders received were
down 13% reflecting the slowdown
in the Architectural market, totaling
EUR 220.3 million. On the other hand,
in the final quarter of 2023, we saw
good order intake development in the
Mobility, Display & Solar segment and
the upgrade order intake recovering.
Persistent work continued for
steadily improving profitability
President & CEO’s Review
For the full year, net sales growth was
3% and net sales totaled EUR 219.7 mil-
lion. Full-year comparable EBITA mar-
gin was 6.8% and comparable EBITA
increased by 6.1% compared to the
previous year. Differences between
segments were apparent with EBITA
improving clearly in the Architectural
segment yet declining in the MDS
segment.
Strategy execution in line with
plans in 2023
Safety continued to be a key focus
area throughout the year. In 2023,
our lost-time accidents increased by
four to a total of ten, and our accident
frequency rate LTIFR was 6.3. Foster-
ing the safety culture continues, as we
need to improve to reach our group-
wide safety target of zero accidents.
Knowledgeable and engaged
employees are key for Glaston to suc-
ceed. Continuous work on skills devel-
opment and creating an inclusive
We are committed to
contributing and investing in
sustainable business.
Glaston Annual Review 2023 3
Glaston 2023
Sustainability
Governance
Financial Review
culture requires ongoing dialogue and
open feedback. We measured again
the Employee Engagement level and
maintained the level of 70 out of 100.
Glaston succeeds together with
our customers. Having a competitive
offering is a result of customer-driven
development with a focus on long
product lifecycles. Customer satis-
faction is validated through ongoing
dialogue as well as measuring the Net
Promoter Score (NPS), which was 62.
The efforts to increase the number of
responses from all customer seg-
ments and regions will continue.
Our strategic investments are
starting to pay off. While continuing
to harness the market growth poten-
tial and putting even more focus
on lifecycle revenue growth, we will
extend our profitability improvement
actions. In the renewed organization,
the Glaston team will further develop
commercial excellence and leverage
the increased efficiencies and global
benefits of scale to accelerate strat-
egy execution.
Megatrends supporting
sustainable business
Megatrends continue to support
Glaston’s business in the longer term.
The fight against climate change,
increased demand for energy-effi-
cient solutions as well as an increased
pressure for renewable energy pro-
duction is strongly impacting glass
processing. Glaston is well-positioned
to provide the solutions that address
these demands, especially with Glas-
ton’s insulating glass technologies
and capabilities for high-volume solar
panel glass tempering production. We
will continue to invest in our capabili-
ties to contribute to the climate work
of the glass industry’s value chain.
In November 2023, Glaston set
new science-based emission targets,
which include decreasing the direct
scope 1 and 2, and especially indirect
scope 3 emissions by 2032. We have
submitted the targets to the Science
Based Targets initiative for validation
and estimate that the final, validated
targets will be published during the
second half of 2024.
The past year was another eventful
year for Glaston. I want to thank the
Glaston team for your focus, dedica-
tion and contribution to our steady
progress in 2023.
I also want to thank our customers,
investors and other stakeholders for
your continuous trust and support.
Antti Kaunonen,
Interim CEO
15 November 2023 -
Strategic targets - performance in 2023
Financial targets 2023 2022 2021
Annual average net sales clearly exceeding
the addressable equipment market growth
+3% +17% +7%
Comparable EBITA 10% 6.8% 6.4% 6.1%
Comparable ROCE 16% 12.7% 10.5% 6.1%
Non-financial targets 2023 2022 2021
Net Promoter Score >40 62 53 -
Lost Time Accidents zero, LTIFR 6.3 3.9 3.3
Employee engagement rate >75 (out of 100) 70 70 -
CO
2
* emissions in relation
to net sales -50%
-61%
-57%
Target
achieved
-13%
*scope 1 and 2
Glaston Annual Review 2023 4
Glaston 2023
Sustainability
Governance
Financial Review
SUSTAINABILITY
Glaston’s value chain ..................................................................... 6
The frontrunner in glass processing .....................................7
Megatrends supporting sustainable business ............. 12
Glaston's sustainability and its management ...............13
UN Sustainable Development Goals..................................20
Responsible own activities........................................................21
Responsible sourcing .................................................................. 32
Responsible partner ....................................................................35
Responsible member of society ..........................................41
Glaston 2023
Sustainability
Governance
Financial Review
Glaston’s value chain
GLASTON supports its customers
throughout the life cycle
Downstream
Flat glass processing
by customers
End-use of glass
products in society
Service and
maintenance
Marketing
and sales
Sourcing Delivery
and
logistics
Production
and
assembly
Architectural Buildings
Mobility Vehicles
Display Electronic displays
Solar Solar energy
GLASTON
Upstream
Raw
materials
Components,
equipment
and services
CORE TECHNOLOGIES
Tempering • Laminating • Insulating glass • Pre-processing
Research and
innovation
Development,
design and
engineering
of machines
and services
Glaston’s purpose is to build a better
tomorrow through safer and more
energy-efficient glass solutions. Glaston
is a trailblazer in glass processing tech-
nologies and services, and glass pro-
cessed with the company’s machines
is used in architectural glass, mobility
glass, display and solar energy indus-
tries. Most of the glass produced using
the company’s technology is supplied
to the construction industry.
Glaston sees the promotion of sus-
tainable development as an oppor-
tunity, and the company wants to be
involved in developing sustainable
societies of the future. Moreover, Glas-
ton is involved in preparing standards
and policies relating to the sustaina-
bility of the glass industry regarding
energy efficiency and safety, among
other themes.
Suppliers of goods and services
play an important role in Glaston’s
value chain. Glaston selects its suppli-
ers carefully and aims for long-term
good relationships with its key suppli-
ers. This ensures that the company’s
partners understand and comply with
the company’s requirements for both
processes and products. Key mate-
rials purchased for the manufacture
of machines include steel structures,
electric and automation components,
power centers and process blowers.
More than 90% of Glaston’s pur-
chases are from the EMEA region,
and the majority of Glaston’s approx-
imately 2,000 subcontractors are
located in Europe, where the compa-
ny’s largest assembly and production
units are located.
Glaston operates globally with man-
ufacturing, services and sales offices
in nine countries and customers in
more than 100 countries. Glaston’s
plants in Finland, Switzerland and China
assemble machines and in Germany
manufacture machines. Glaston has a
total of 4,000 installed and operational
machine lines. In accordance with its
life cycle model, Glaston has actively
developed its maintenance services,
as regular maintenance extend the
service life of machines and increase
their safety.
Succeeding together with the
customers is at the core of Glaston’s
strategy and values. The company’s
customers process glass for the archi-
tectural, mobility, display and solar
energy markets. Glaston continuously
develops its operating methods that
increase customer value and enhance
the customer experience.
Glaston develops its industry in an
active and diverse manner. The com-
pany promotes the development of
the glass processing industry and the
technologies it uses in its own opera-
tions and with its partners. Glaston is an
active member of many glass industry
committees and working groups in
preparing standards on safety glass.
In addition, Glaston engages in close
cooperation with different research
and educational institutions.
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Governance
Financial Review
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 industry technologies
and services. Glass processed using
Glaston’s machines is used in the
architectural glass, automotive glass,
display and solar energy industries.
Most of the glass produced with the
company’s technology is supplied to
the construction industry.
In line with its vision, Glaston seeks
to lead the global glass processing
industry forward with innovative tech-
nologies and lifecycle solutions. The
company creates value by providing
technologies that enable the process-
ing of glass into safe and energy-effi-
cient glass solutions.
Glaston’s mission is to continue to
develop cutting-edge technolog-
ical solutions for sustainable glass
processing, while ensuring that the
company’s operations and value chain
meet ever-increasing expectations for
sustainability. These lay the founda-
tion for the sustainable and profitable
growth of Glaston’s business.
Demand for more energy-efficient
and environmentally sustainable glass
solutions is continually growing. Ener-
gy-efficient double- or triple-glazed
insulating glass units and coated,
low-emissivity glass processed with
Glaston’s technology meet the ener-
gy-saving needs of buildings.
Greater attention is being paid to
the safety of buildings, and for glazing
solutions this means increasing use of
tempered and laminated glass. Tem-
pering, laminating and insulating glass
processes are Glaston’s core exper-
tise, and in these the company offers
the most advanced technology.
The fight against climate change is
also strongly impacting glass process-
ing and this has led to rapid develop-
ment of thin glass and glass used in
solar energy solutions, such as solar
panels. As the industry’s innovative
technology leader, Glaston is strongly
involved in this development, and is
continually launching more advanced
technology to meet stricter market
requirements.
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Glaston is the glass processing
industry’s innovative technology
leader, providing equipment, ser-
vices and solutions to the archi-
tectural, mobility, display and solar
energy industries. The company
also supports new technologies
integrating smart features into
glass.
Glaston has production in Ger-
many, Finland, China and Switzer-
land. Glaston’s factories in Finland,
Switzerland and China assemble
machines, while in Germany
machines are manufactured. In
addition, the company has sales
and service points in nine coun-
tries. From these locations, Glaston
serves its customers, who operate
in over 100 countries. The company
is domiciled in Helsinki, Finland.
Glaston’s corporate structure
was reorganized in October 2023.
The goal of the new organization is
to enhance the customer experi-
ence, accelerate to execution of
the strategy and improve opera-
tional efficiency. Glaston has two
Business Areas (BA), Architecture
and Mobility, Display & Solar, which
better match customers’ end-use
segments. The company also has
two global business functions:
Automation & Innovation and
Sourcing & Supply Chain
Management.
Most of the company’s business
is focused on the Architectural
market.
Glaston also offers digital services,
such as glass processing machine
remote monitoring and fault anal-
ysis services, and consulting and
engineering services. Personnel
also work in sales of machinery and
services and in Group functions.
As part of Glaston’s strategic
projects promoting business
growth, the company has invested
in the manufacturing of locally
produced equipment in China.
In 2023, the company launched
the production of automotive
glass pre-processing equipment
products at the Tianjin factory,
in addition to the production of
previous tempering and insulating
glass equipment. Glaston has also
entered the market for solar panel
glass technologies in China with a
new flat tempering line suitable for
solar panel glass processing. The
first CHF Solar lines were delivered
Glaston’s Business Areas
focus on different sectors
Glaston Architecture
The Architecture BA consists of Glas-
ton’s tempering and laminating tech-
nologies and insulating glass technol-
ogies as three business lines.
The business lines Tempering and
Laminating offer a wide and tech-
nologically advanced range of heat
treatment machines, maintenance,
upgrade and modernization services,
and spare parts for glass flat temper-
ing and laminating.
Most of the personnel in the busi-
ness lines focusing on tempering and
laminating technologies are located in
Finland.
The Insulating Glass business line pro-
vides high technology machines for
the manufacture of insulating glass,
maintenance, upgrade and moderni-
zation services, and spare parts. Most
of the business line’s personnel are
located in Germany.
Glaston Mobility, Display & Solar
The Mobility, Display & Solar BA
consists of two business lines. The
Pre-processing business line offers
pre-processing technologies for the
mobility and display glass industries as
well as the related Services business,
and the MDS Heat Treatment business
line offers heat treatment technol-
ogies and related services for the
mobility, display and solar panel glass
markets.
Most of the business area’s person-
nel are located in Switzerland.
In addition, Glaston has two new
global business functions: Automation
& Innovation and Sourcing & Supply
Chain Management.
Glaston as a company
In the new organizational structure, which came into effect on 1 October
2023, Glaston has two Business Areas (BA):
Glaston Annual Review 2023 8
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Governance
Financial Review
to customers from the Tianjin factory
during 2023.
Glaston Corporation’s share
(GLA1V) is listed on the main list of
Nasdaq Helsinki Ltd. At the end of
2023, Glaston had 7,472 shareholders.
At the end of the year, the company’s
largest shareholders were Ahlstrom
Capital B.V. (26.39%), Hymy Lahtinen
Oy (12.22%), Varma Mutual Pension
Insurance Company (7.50%), Ilmari-
nen Mutual Pension Insurance Com-
pany (7.31%) and OP-Finland Small
Firms Mutual Fund (6.04%).
Cornerstones of strategy
The objective of Glaston’s strategy is improving growth and
profitability. Growth measures defined by Glaston’s business
lines and the successful implementation of the strategy will
be supported by Group-wide cornerstone initiatives: inno-
vate with customers, digitalization, empowering Glastonians,
sustainable operations, and mastering sourcing and manu-
facturing.
Glaston’s strategic cornerstone initiatives
Implementation of the strategy is supported by
Group-wide cornerstone initiatives.
1. Innovate with customers to win: strengthening Glas-
ton’s technology leadership by seamless integration
of customer understanding with faster innovation and
development work.
2. Leading digital transformation: building the tools and
infrastructure across all Glaston operations to lead the
industry’s digital transformation.
3. Empowering Glastonians to thrive: is essential in building
the desired 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. Sustainable operations: will enable long-term success
by building a stronger culture of continuous improve-
ment and systematically progressing the sustainability
agenda.
5. Master global sourcing and manufacturing: will enable
operational efficiency and growth through more harmo-
nized sourcing and manufacturing processes.
The strategy is supported by medium-term (3-5 years)
targets promoting sustainability:
• Customer satisfaction score (Net Promoter Score, NPS)
over 40
• Safety at work target of zero lost time accidents (LTA,
progress measured as accident frequency, LTIFR)
• Employee engagement rate over 75 (0–100)
• Glaston’s CO
2
emissions from own operations (Scope
1 + 2) 50% down from 2022 level and value chain (Scope 3)
CO
2
emissions intensity down by 58% per m
2
of sold glass
processing capacity by 2032.
Glaston Annual Review 2023 9
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The ‘Innovate with customers to win’ initiative developed and harmonized processes
and prioritization at the Group level to ensure the products market-fit based on cus-
tomer needs. In addition, the harmonization of sales tools and processes and the
development of strategic customer account management continued.
The ‘Lead digital transformation’ initiative continued the implementation of Glaston’s
digital vision by completing several ICT projects. New ICT activities were surveyed, and
prioritization was harmonized. Next, the development projects for 2024 will be prior-
itized.
The ‘Empower Glastonians to thrive’ initiative focused on committing employees,
among other things, which translated into lower personnel turnover. In addition, invest-
ments were made in identifying Glaston employees’ skills and talent. A training pro-
gram aimed at the sales organization was completed during the year.
The ‘Elevate sustainability’ initiative continued the implementation of the sustainability
roadmap prepared the previous year. Measures to reduce emissions continued, and the
company set new Science Based Targets-aligned emissions reduction targets. In order
to prepare for future reporting requirements, Glaston conducted a Double Materiality
Assessment as introduced as part of EU’s Corporate Sustainability Reporting Directive
(CSRD) effective from 2024.
In order to accelerate the ‘Master global sourcing & manufacturing’ initiative, the new
Sourcing & Supply Chain Management business function was established in connec-
tion with the organizational change, developing and harmonizing tools and reporting
further to facilitate efficient sourcing, among other things. In addition, the sourcing
practices and quality indicators for purchases will be harmonized. In China, strengthen-
ing local sourcing continues.
In 2023, implementation of the five cornerstone initiatives
proceeded well according to plan.
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Continuous dialogue and
development work
One of Glaston’s strategic corner-
stone initiatives is Innovate with
customers to win, which focuses
on strengthening the company’s
technology leadership by seamless
integration of customer understand-
ing with faster innovation and devel-
opment work.
To remain at the forefront of the
development of glass processing
equipment and services, Glaston
invests significantly in the continuous
development of its technology portfo-
lio and its research and development
activities.
Glaston’s goal is to be a reliable and
responsible partner for its stakehold-
ers. The 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 key sustainability
themes is Responsible member of
society, and the company is actively
and diversely involved in developing
its industry. For example, the Glass
Performance Days (GPD) event,
organized by Glaston, brings together
glass industry actors to discuss and
share knowledge on new innovations
and trends. After a four-year break
due to the coronavirus pandemic, the
GPD was held again in Tampere in
June 2023.
In 2023, Glaston determined,
through interviews conducted in
connection with a materiality assess-
ment, the views and expectations of
customers, suppliers, shareholders
and Glaston’s supervisors with regard
to the company’s sustainability. In
addition, an internal survey also identi-
fied the most important sustainability
issues for the company’s personnel.
The views of the various stakehold-
ers guide the focus of the company’s
sustainability work and future sustain-
ability reporting.
Scope of the report
This sustainability report describes
Glaston Group’s operations in 2023.
The content of the report and the
themes covered are based on Glas-
ton’s strategy as well as a materiality
assessment of sustainability. The
report covers the entire Group.
253.0
220.3
Key Figures 2023
EMEA ..............52%
Americas .....33%
APAC ...............15%
Net sales per
region, %
Received orders by product area, € million
Architecture Tempering and
Laminating Technologies
Insulating Glass Technologies
Mobility, Display and Solar Technologies
Service
Unallocated and
eliminations
2023
2022
Asia ............... 20%
Americas .....6%
EMEA ............ 74%
Personnel per region
at end of year, %
Architecture
Mobility, Display & Solar
2023
2022
138.3
106.5
Order book, € million
14.9
13.6
2023
2022
Comparable EBITA, € million
219.7
M€
802
employ-
ees
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Megatrends supporting sustainable business
Urbanization and megacities
Urbanization is one of the world’s
most powerful forces of change. The
UN has estimated that by 2050 nearly
70% of the world’s population will live
in cities and, particularly in develop-
ing countries, megacities of over 10
million inhabitants will arise. Through
urbanization, the need for new con-
struction will grow, and the existing
building stock, too, will be developed,
which will increase demand for glass.
Glaston contributes to the con-
struction of more energy-efficient
societies by offering its customers a
wide range of machines and services
that enable them to manufacture
more energy-efficient glass products.
Climate change and energy efficiency
The use of glass in buildings has
increased significantly; well-designed
glass usage can reduce the energy
consumption of buildings, improve
their sound insulation and at the same
time increase interior brightness. Peo-
ple’s preferences are also increasing
the use of glass as a building material.
This development will drive growing
demand for energy-saving and insu-
lating glass.
The rise in energy prices and
availability concerns have impacted
the European glass industry, which is
an energy-intensive industrial sector
traditionally dependent on natural gas.
On the other hand, energy-related
risks may drive demand for ener-
gy-efficient solutions and, for exam-
ple, energy produced by solar panels.
As environmental awareness
increases and construction laws and
regulations become stricter, the ener-
gy-saving requirements for buildings
will tighten. Insulating and energy-sav-
ing 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 panels.
Safety and healthiness
Greater attention is being paid to the
safety of buildings. Due to tightening
safety regulations, more and more
safety glass is being used, which has
meant increased 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.
In addition, the abundant natural
light made possible by large glass sur-
faces has been shown to be an impor-
tant factor in improving the well-being
of residents and employees.
The importance of a safe and
healthy life and working environment
has grown and for Glaston safety is
also a strong priority internally. Occu-
pational health and safety is a poten-
tially significant human rights issue,
and related risks are proactively identi-
fied and prevented.
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 sus-
tainability goals. Diversity and equality
are important themes in the societal
debate and in ensuring the well-being
of employees. Glaston works actively
to provide a safe and good workplace
for its personnel.
Transparency of operations and
traceability of supply chains are also
increasingly important themes, not
only in terms of risk management, but
also in the assessments of finance
providers and investors.
Glaston’s business and product development are particu-
larly affected by the megatrends of urbanization and grow-
ing environmental awareness. With the growing use of glass,
expectations for its energy efficiency, safety and versatility
have increased. The development of energy prices and the
tightening of building requirements further underline the
importance of energy efficiency.
Safety is an
important focus
area for Glaston.
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Glaston’s sustainability and its management
Glaston’s purpose is to build
a better tomorrow through
safer, smarter, and more
energy-efficient glass
solutions.
Glaston is committed to provid-
ing a safe and good workplace for
its employees, being a responsible
partner to its customers, utilizing
resources efficiently, and reducing the
environmental impacts of its produc-
tion processes.
Glaston recognizes its responsi-
bility for environmental and climate
impacts throughout its value chain,
and the company’s goal is to actively
anticipate and prevent potential envi-
ronmental risks. Glaston’s solutions,
product development and mainte-
nance services covering the entire life
cycle of machines meet the growing
demand for more energy-efficient,
more environmentally sustainable and
safer glass solutions.
As the technology leader in the
glass industry, Glaston’s operations
are built on talented people and their
ability to innovate new products as
well as serve and attract customers
worldwide. The commitment of its
employees is therefore an essential
and strategic goal for Glaston. The
company wishes to offer Glastonians
a safe and engaging working environ-
ment where they can continuously
develop their skills.
This reporting for 2023 is based
on the topics identified as material
at the end of 2021, which have been
updated to reflect Glaston’s strategy
and changes in the operating environ-
ment.
Glaston’s material sustainability
topics are:
• responsible own activities
(human resources, environment,
responsible business)
• responsible sourcing,
• responsible partner and
• responsible member of society.
As part of Glaston’s preparation for reporting under the EU’s
Corporate Sustainability Reporting Directive (CSRD), the company
conducted a Double Materiality Assessment in 2023.
The assessment identified the key sustainability themes that
could have a financial impact on Glaston as well as the most signifi-
cant sustainability impacts of Glaston’s operations on its external or
internal personnel.
The most relevant themes identified were climate change and
issues concerning Glaston’s own personnel, such as safety at work,
workload and well-being, diversity, equality and inclusion.
Other themes identified as important were responsible business,
circular economy, human rights and safety of value-chain employ-
ees, safety of customers and end users, and biodiversity and eco-
systems.
In connection with the assessment, a number of customers,
suppliers, shareholders, and Glaston supervisors were interviewed
about their views and expectations regarding the company’s sus-
tainability. In addition, an internal survey comprehensively identified
the most important responsibility themes in the opinion of person-
nel. More than 200 Glastonians answered the survey.
Glaston’s Board of Directors has approved the results of the
assessment and the company will use them in its preparations for
future reporting requirements.
Double Materiality Assessment
reinforces Glaston’s direction
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Managing sustainability
One of the focus areas of Glaston’s
strategy is sustainability. To demon-
strate this, the strategy has set four
targets addressing sustainability. The
work towards the set sustainabil-
ity targets is steered by a roadmap,
approved by the Executive Leader-
ship Team and the Board of Directors,
which includes a plan and a timetable
of measures.
The Sustainability Policy, approved
by Glaston’s Board of Directors in
autumn 2023, describes the principles
and priorities related to the manage-
ment and leadership of the Group’s
sustainability and defines the respon-
sibilities for different functions. The
most important responsibilities are
described in the attached table.
General Meeting
of Shareholders
• The Annual General Meeting approves the annual sustainability reporting as part of the financial
statements and appoints an assurance provider for the sustainability report.
Board of
Directors
• decides on the sustainability strategy as part of the Group’s business strategy, including the setting of
targets addressing sustainability
• assesses the results of the sustainability work at least once a year
• approves the annual sustainability reporting and is responsible for ensuring that reporting is
adequately monitored
• decides on the target setting of short- and long-term incentives and whether they include
sustainability-related metrics
• approves all sustainability-related policies and the result of the Double Materiality Assessment.
Committees
of the Board of
Directors
• The Audit Committee is responsible for overseeing and evaluating sustainability reporting, the
effectiveness of internal control, and risk management of the reporting process. The committee also
reviews all policies related to sustainability before they are approved by the Board of Directors.
• The People and Remuneration Committee prepares the principles of the company’s remuneration
model for approval by the Board of Directors.
Chief Executive
Officer
• has overall responsibility for the implementation of the sustainability agenda as part of the execution
of the strategy
• is responsible for setting up an appropriate organization for sustainability work and ensuring the
necessary resources and expertise are in place
• is responsible for the appropriate implementation of sustainability reporting
• approves the annual sustainability report.
Executive
Leadership
Team
• is responsible for integrating sustainability impacts, risks and opportunities into the business strategy
• assesses and approves strategic direction, materiality assessment, target setting and performance,
and risk assessments in sustainability matters
• monitor the results of sustainability work at least every six months
• approves sustainability guidelines and decides on policies to be sent to the Board of Directors for
approval
Sustainability governance structure
Glaston Annual Review 2023 14
Glaston 2023
Sustainability
Governance
Financial Review
Chief Financial
Officer &
Sustainability
Function
• the CFO is responsible for sustainability matters at Executive Leadership Team level and leads the
Group’s Sustainability Function
• the CFO oversees sustainability reporting, and the Finance organization is responsible for analyzing
and managing risks related to the reporting process
• the head of the Sustainability Function steers the operational sustainability work
• the Sustainability Function, in cooperation with the business areas and functions, is responsible for
Group-level environmental and climate change matters.
Sustainability
Working Group
• coordinates sustainability work and is responsible for the systematic development and monitoring of the
sustainability agenda as well as reporting to the Executive Leadership Team and the Board of Directors
• prepares targets and policies for decision-making by the Executive Leadership Team and the Board
of Directors
• is responsible for regular materiality assessment and sustainability risk assessment.
Business areas,
functions and
companies
• are responsible for the practical implementation of sustainability work as well as measuring and
reporting results.
As part of the company’s commit-
ment to sustainable and responsible
business practices, Glaston joined the
UN Global Compact in spring 2023.
Glaston is also committed to set-
ting company-wide science-based
emissions reduction targets. The
targets were submitted to the Sci-
ence-Based Targets initiative (SBTi)
for evaluation and validation in late
2023. The emissions reduction targets
support the goal of the Paris Agree-
ment to limit global warming to 1.5°C.
By continuously and purposefully
improving its operations, Glaston
aims both to promote the sustainabil-
ity of its own operations and help its
customers and the entire architecture
value chain achieve the global Sus-
tainable Development Goals.
Sustainability targets
Glaston’s sustainability work is guided
by Group-wide strategic targets pro-
moting sustainability:
• Safety at work: zero lost time acci-
dents (LTA, measured as accident
frequency, LTIFR) by 2025
• Employee engagement rate over 75
(0–100) by 2025
• Glaston’s CO
2
emissions from own
operations (Scope 1 + 2) 50% down
from 2022 level and value chain
(Scope 3) CO
2
emissions intensity
down by 58% per m
2
of sold glass
processing capacity by 2032
• Customer satisfaction score Net
Promoter Score, (NPS) over 40 by
2025
In February 2024, Glaston adjusted the
timeframe for achieving the strategic
targets from 2025 to the medium term
(3-5 years). In 2022, Glaston achieved
its emissions target for Scope 1 & 2
and the target was updated in 2023. In
addition to these key targets, Glaston
has set other targets for its sustainabil-
ity work, which are explained in more
detail for each topic in this report.
As part of the company’s corporate
responsibility work, Glaston’s financing
agreement, signed in 2022, has been
linked to the sustainability targets. The
loan margin of the financing agree-
ment takes into account the reduction
of the company’s CO
2
emissions and
success in reaching safety at work
targets annually.
The Sustainability
Policy describes the
principles and priorities
related to the manage-
ment and leadership
of sustainability.
Glaston Annual Review 2023 15
Glaston 2023
Sustainability
Governance
Financial Review
Topic Indicator Target Achieved 2023 Achieved 2022 Timetable
Responsible
business
Training of personnel in the Code of
Conduct
Training coverage 100% 98% 93% Continuous
Safe workplace
Accident frequency (LTIFR), number of
accidents per million hours worked
Accident frequency zero 6.3 3.9 Continuous
Reports of workplace harassment No harassment cases 3 cases
reported
1 case reported Continuous
Employee engagement rate Employee engagement rate over 75 (0–100) 70 70 2025
Impacts on the
environment
CO
2
emissions in own operations CO
2
emissions (Scope 1+2) in relation to net sales
down by 50% from the 2020 level**
)
-61% -57%, target
achieved
2025
Emissions in value chain Calculate emissions and set target for emissions
reduction
322,644 t CO
2
e
target set and
submitted to
SBTi for valida-
tion
684,150 t CO
2
e 2032
Responsible
sourcing
Suppliers’ com-mitment to Glaston’s
Code of Conduct (new and current
suppliers)
Commitment coverage 100% 74% of main
suppliers
75% of main
suppliers
2025
Responsible
partner
Industry’s best customer experience Customer satisfaction score (NPS) over 40 62 53 2025
Technologically advanced and material-
and energy-efficient products
R&D, % of net sales 4.2% 4.3% Continuous
Key responsibility objectives *
)
*
)
In February 2024, Glaston adjusted the timeframe for reaching the strategic targets from 2025 to the medium term (3-5 years).
**
)
A new emissions reduction target covering the entire value chain was set in 2023.
Glaston Annual Review 2023 16
Glaston 2023
Sustainability
Governance
Financial Review
Sustainability targets:
• Coverage of Code of Conduct
training (personnel) 100%
Key strategic priorities:
• Ensuring compliance with the
Code of Conduct
• Anti-corruption policy training
• Fair business and competition
training
• Creating audit model for
agents
• Audit of agents
Glaston’s day-to-day activities are
guided by the Code of Conduct,
which is approved by the Board of
Directors. The Code of Conduct
provides all Glaston personnel with
guidelines on acting in an ethically
sustainable way in the workplace,
in interaction with various partners,
customers and suppliers, and also as a
responsible actor in society. The Code
of Conduct includes, among other
things, a commitment to respect
human rights, and strictly prohibits any
form of harassment.
The Code of Conduct is pub-
lished in Finnish, English, German and
Chinese so that as many Glastonians
as possible can read it in their own
language. Training in the Code of Con-
duct is arranged for all personnel, and
every Glaston employee must attend
such training every two years. Training
is also an integral part of the induction
of new employees.
Training was organized once again
in 2023, and at the end of the year,
98% of personnel had completed it.
The objective of the training is not only
to familiarize Glaston’s personnel with
the Code of Conduct but also to sup-
port and strengthen Glaston’s com-
mon ethical approach and to identify
and address any problem areas.
Glaston has also published a sepa-
rate code of conduct for its suppliers
(Glaston Supplier Code of Conduct),
to which it requires suppliers to
commit. The Glaston Supplier Code
of Conduct is published in Finnish,
English, German and Chinese.
Glaston has a whistleblowing
channel through which both person-
nel and external stakeholders can
anonymously report any potential and
perceived violations of the Code of
An ethical and sustainable approach
Glaston Annual Review 2023 17
Glaston 2023
Sustainability
Governance
Financial Review
Conduct or other responsibility pol-
icies. In 2023, four notifications were
made, of which three were classified
after investigation as infringements.
Glaston investigates all reported
incidents promptly and confidentially
and takes appropriate action based
on the findings of the investigation.
The whistleblowing channel has been
moved to a new system, which is eas-
ier to use and offers more language
options. In connection with the intro-
duction of the new system, personnel
were reminded and instructed on how
to use the channel.
Sustainability Policy
clarifies the division of
responsibilities
At the end of 2023, Glaston’s Board
of Directors approved the company's
new Sustainability Policy. The policy
outlines the operating practices, roles
and responsibilities for the company’s
sustainability management, clarify-
ing and strengthening the division of
responsibilities between the Board of
Directors, the CEO and the Executive
Leadership Team, the Sustainability
Working Group and business opera-
tions. In addition, the policy sets out
how sustainability targets are set and
reported on.
The Sustainability Policy and Code
of Conduct are complemented by
other policies and guidelines that
guide a sustainable approach:
• Glaston’s Supplier Code of Conduct
• People Policy
• Environment and Climate Change
Policy
• Human Rights Policy
• Anti-Corruption and Anti-Bribery
Policy
• Sourcing Guidelines
• Safety and Occupational Health
Policy,
• Information Security Policy and
• Taxation Policy.
In 2023, the Board of Directors
approved Glaston’s new Environment
and Climate Change Policy and Peo-
ple Policy, which define the com-
pany’s commitment to systematic
reduction of environmental loading
and fair working practices.
Glaston is committed to the prin-
ciple of equal opportunities, and no
discrimination or harassment of any
kind is permitted. The People Policy
helps create a working environment in
which all of the company’s employees
can flourish and develop.
Developing Glaston’s
understanding of
human rights
Glaston is committed to respecting
human and labor rights as defined in
internationally recognized principles,
such as the United Nations Guiding
Principles on Business and Human
Rights and the OECD Guidelines for
Multinational Enterprises.
The Human Rights Policy, approved
by Glaston’s Board of Directors,
describes the Group’s key risks and
impacts related to human rights
as well as the measures to assess,
prevent and mitigate these risks and
negative impacts.
Glaston Annual Review 2023 18
Glaston 2023
Sustainability
Governance
Financial Review
The Human Rights Policy addresses,
for example, the right of everyone
working in Glaston’s value chain to
health and safety at work, good work-
ing conditions, a living wage and equal
and non-discriminatory treatment.
In autumn 2023, Glaston carried
out a human rights risk assessment in
collaboration with an external expert.
Occupational safety risks, both in
Glaston’s own operations and in the
production of its customers, were
identified as serious in terms of their
potential impact. In addition, risks
were identified in relation to supply
chain working conditions and to equal
and non-discriminatory treatment in
the company’s own operations.
The study also defined key meas-
ures for managing identified human
rights risks and assessed and devel-
oped Glaston’s current human rights
due diligence process.
Glaston’s human rights due dili-
gence process systematically identi-
fies, assesses and prioritizes adverse
human rights impacts of business
activities. Glaston strives to prevent
and mitigate these impacts and take
the necessary measures to correct
them.
Risks and impacts related to human
rights are assessed using various risk
assessments. Glaston has processes
in place to assess and mitigate risks
related to occupational safety, supplier
performance and employee engage-
ment. These processes are also
being constantly developed to assess
human rights impacts. The goal is, in
the future, to include consideration of
human rights impacts in the selection,
evaluation and inspection processes
for Glaston’s suppliers.
The company recognizes the need
for learning with regard to human
rights and is continuously developing
its understanding of the impacts of
its activities. Cooperation with part-
ners is crucial for enabling Glaston
to promote human rights through-
out the value chain. The company’s
representatives engage in dialogue
with various stakeholders through,
for example, supplier visits, employee
surveys, customer satisfaction surveys
and interviews, investor dialogue and
safety surveys.
Combating bribery and
corruption throughout the
value chain
Glaston has its own operating loca-
tions in nine countries, and from these
Glaston serves its customers in over
100 countries. In addition, the com-
pany’s own operations are comple-
mented by a global agent network.
Glaston recognizes that there is a
possible risk of corruption and fraud in
the company’s operating regions and
countries.
In its everyday activities, Glaston
is committed to combating bribery
and corruption. Glaston’s anti-brib-
ery and anti-corruption policy clearly
outlines the company’s practices and
increases Glaston employees’ aware-
ness of the risk of corrupt payments,
unequivocally prohibits the payment
and receipt of bribes, and ensures
that the company conducts business
honestly, in compliance with anti-cor-
ruption 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.
Anti-bribery and anti-corruption
training has been updated, and the
revised training will be rolled out
Group-wide in early 2024. Training is
organized particularly for the compa-
ny’s management and sales organi-
zation as well as for other individuals
whose working duties involve an
increased risk of corruption.
As a preventive measure to mini-
mize the risk of bribery and corrup-
tion, all agent agreements related to
Glaston’s sales are concluded cen-
trally. Particular attention is paid to
commissions paid, which should be at
a reasonable level. During 2023, work
began on the development of a new
audit model for the evaluation of sales
agents was launched.
Glaston takes competition rules
very seriously and every employee
must act in accordance with them.
Glaston regularly organizes training
for its personnel on fair business and
fair competition issues. The training
material has been revised towards the
end of 2023 and will be rolled out dur-
ing 2024. The online training is always
available on the company’s intranet. In
addition, policy briefings are regularly
held for personnel working at the cus-
tomer interface.
Glaston is committed
to respecting human
and labor rights.
Glaston Annual Review 2023 19
Glaston 2023
Sustainability
Governance
Financial Review
Glaston’s respon-
sibility theme UN Sustainable Development Goals Implementation in Glaston
Responsible
operations
Goal 3
Ensure healthy lives and promote
well-being for all at all ages
Goal 4
Ensure inclusive and equitable quality
education and promote lifelong
learning opportunities for all
• systematic development of occupational health and safety
• minimizing health risks: e.g. in Finland, enhanced health checks
for the over 50-year-olds, hobby sessions and exercise benefits
• eSkills online learning system for all personnel
• summer work, diploma work and trainee positions for young
people
• Ahlström Collective Impact cooperation with UNICEF Finland
Responsible member
of society
Goal 7
Ensure access to affordable, reliable,
sustainable and modern energy for
all
Goal 11
Make cities and human settlements
inclusive, safe, resilient and
sustainable
• reducing the harmful environmental impact of cities with new
glass technologies
• providing engineering and consulting services for the
production of energy glass windows as well as for solar energy
applications
• enabling the introduction of resource-efficient and clean
technologies and production processes
• participating in the development of society by paying taxes,
wages and dividends
Responsible partner Goal 9
Build resilient infrastructure,
promote inclusive and sustainable
industrialization and foster innovation
Goal 12
Ensure sustainable consumption and
production patterns
Goal 17
Revitalize the Global Partnership for
Sustainable Development
• efficient use of energy and materials and minimizing materials
and other waste
• glass processing machine energy-efficiency at heart of
product development, long life cycle, high utilization rate
and
optimizing production efficiency and quality through
automation
• 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. Glaston has identi-
fied seven goals that also
emerge from its own strat-
egy and are most material
to the company. These
provide a broader frame
of reference for Glaston’s
work, and the company
supports the achievement
of these goals in its own
activities.
Glaston Annual Review 2023 20
Glaston 2023
Sustainability
Governance
Financial Review
Responsible
own activities
Human resources
• Health & safety and risk prevention
• Competencies and skills, development and
training
• Diversity and inclusion
• Equality, anti-discrimination, anti-harassment
• Good leadership
Environment
• Climate impact oversight and scenarios
• Risks and opportunities related to tightening
emissions regulation
Responsible business
• Financial responsibility ensuring competitiveness
and profitability
• Anti-corruption and fair competition practices
• Responsible sales
Glaston Annual Review 2023 21
Glaston 2023
Sustainability
Governance
Financial Review
Professional, healthy and committed
personnel are the foundation of
Glaston’s success. We ensure the
continuous development of the skills of
personnel by providing an inspiring and
appreciative work environment in which
each Glastonian with their abilities
and needs is recognized. We succeed
together with our personnel.
We empower our employees to thrive
Sustainability targets:
• Employee engagement rate over 75
(0–100)
• No workplace harassment
• Accident frequency zero
Key strategic priorities:
• We are an equal employer that values
diversity
• Our management culture strengthens
success together
• We encourage skills development
• We enable career advancement
• We attend to well-being and safety at work
Glaston Annual Review 2023 22
Glaston 2023
Sustainability
Governance
Financial Review
Glaston’s personnel
During 2023, the number of Glaston
personnel developed moderately and
in accordance with the strategy, and
there were 802 (783) Glaston employ-
ees at the end of the year. At the end
of 2023, Glaston had operations in
nine countries, of which the three
largest, by employee numbers, were
Germany, Finland and China. In 2023,
employee turnover was 8.8%. In Ger-
many, employee turnover was 8.2%, in
Finland 3.9% and in Switzerland 13.1%.
Most employment relationships are
permanent and the average age of
personnel is 44.3 years.
Of Glaston’s personnel, 84% are
men and 16% are women. At the end
of 2023, 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 Leader-
ship Team were women.
Together, towards success
Glaston’s HR work is guided by the new
People Policy, approved by the Board
of Directors at the end of 2023, which
sets out the company’s principles with
regard to, among other things, diver-
sity, equality and inclusion. The policy
helps Glaston create a working envi-
ronment in which all of the company’s
employees can flourish and develop.
Empowering Glaston people to
thrive is one of the strategic corner-
stone initiatives. Important factors
in achieving success are played by
leadership development, a work cul-
ture that values equality and diversity,
encouraging Glaston employees to
further develop their competence,
supporting various career paths, and
attending to well-being and safety at
work.
The common leadership principles
are the basic pillars of Glaston’s man-
agement, which spell out what good
leadership at Glaston looks like and
what is expected from supervisors.
The company supports supervisors
to deepen their competence and
leadership skills through a variety of
methods.
Glaston’s operating culture is
constantly being developed. It is
important to the company that every
Glastonian is in a role where they can
harness and develop their expertise.
As an employer, Glaston also wants
to hear and better understand the
individual needs of Glaston employees
so that the company can offer prop-
erly targeted measures to support the
success of its personnel and custom-
ers. The company’s goal is to enable
a culture where every Glastonian can
shine.
<20
20–29
30–39
40–49
50–59
60>
13
Employee age distribution
Employees by type of employment, %
Personnel at end of year
(FTE), %
102
187
252
199
105
64
White-collar ............................. 70%
Blue-collar ................................30%
Gender distribution, %
Male ............................................... 84%
Female .........................................16%
Male Female
Personnel per
function
Architecture.... 50%
Services ..............22%
Administration,
group
functions .............14%
Mobility, Display
& Solar ................. 10%
Sales ....................... 4%
Germany.........35%
Finland .............. 26%
China .................. 17%
Switzerland ......9%
USA ........................6%
Rest of EMEA ...4%
APAC ....................2%
Gender distribution in Glaston, %
Leadership
Tea m
Board of
Directors
Glaston
Group
20 40 60 80 100
802
employ-
ees
Glaston Annual Review 2023 23
Glaston 2023
Sustainability
Governance
Financial Review
Employer worthy of employee
engagement
Glaston works hard to ensure that the
company is an attractive employer
where personnel can thrive, feel good
and develop. Engaged employees
play an important role in achieving
strategic goals. One of the Group-
wide strategic targets is to raise the
employee engagement rate to over
75 (on a scale of 0–100).
The company conducts an annual
personnel survey to measure Glasto-
nians’ engagement with the company.
The 2023 results showed an engage-
ment rate of 70 (0–100), which is a
good outcome.
Glaston’s personnel stated that
they were particularly satisfied with
the diversity of the work commu-
nity, cooperation with colleagues,
the meaningfulness of the work and
the inclusive culture. Issues related to
managing one’s own health, stress
and work load as well as mutual com-
munication and the giving of feedback
were identified as particular areas for
development.
The personnel survey functions as
part of the development of a culture
of continuous discussion and feed-
back. With the aid of the survey, the
company monitors its success in
matters important to Glaston employ-
ees, as well as coping at work and
job satisfaction. The annual survey
also enables the company to monitor
the development of issues raised in
employee feedback.
The company has celebrated the
long careers of many Glastonians,
which demonstrates to Glaston the
engagement of its personnel. Employ-
ment relationships at Glaston are
long, averaging 10.8 years in 2023. The
company also seeks to promote its
personnel’s mobility and career paths
from one position to another.
Skills development and growing in roles
Expert staff are the foundation of
Glaston's success, and the average
age of Glaston employees, around
44 years, is a good indication that the
organization has a wealth of valuable
skills built up through experience.
Recognition of Glastonians’ com-
petencies and skills also plays an
important role in achieving strategic
goals. For this reason, the company
has begun to identify more systemat-
ically the competencies and skills as
well as the competence development
needs of each Glastonian. The com-
pany has also turned its attention to
identifying less experienced Glaston
employees who can be supported
and encouraged to grow into various
strategic roles. In this way, Glaston will
ensure the continuity of its business.
Glaston regularly conducts Peo-
ple Deep Dive discussion processes,
aimed at better identifying both the
organization’s capabilities and the
kind of resources the implementation
of Glaston’s strategy requires. Based
on them, plans are created on how
to increase, develop and engage the
necessary expertise. Based on the
identified competence needs, local
development measures, training and
recruitment have been initiated.
Thanks to Glaston’s internal eSkills
online learning platform, training is
flexibly available. In addition to training,
the company offers continuous skills
development through work assign-
ments. Glaston’s industry is demand-
ing, and through years of work many
Glastonians have grown into top
experts in their field.
Each year, a performance appraisal
is conducted with all employees in
which they discuss with their super-
visor current issues as well as their
goals and development needs. Based
on the appraisal, personal goals and
a development plan are drawn up for
each employee.
All Glaston personnel are covered
by a performance bonus scheme
based on the company’s financial
performance. In addition, the com-
pany rewards, through the Glaston
Way awards, good work performance
that supports the achievement of the
strategic goals.
Glaston Annual Review 2023 24
Glaston 2023
Sustainability
Governance
Financial Review
Well-being at work
Glaston is a global company and its
personnel have diverse backgrounds
and cultures, which the company
views as a strength. Glaston oper-
ates in the technical field, where the
gender distribution has traditionally
been strongly male-dominated. The
company seeks to actively enrich the
diversity of its work community, both in
terms of the gender of personnel and
other individual background factors.
Inclusion, i.e. participation in the
work community, being seen and
heard, and the fact that everyone
can feel safe and express their own
thoughts, is an important component
in ensuring the well-being of Glas-
ton employees. Glaston considers it
important to develop operating prac-
tices and processes to better take into
account possible unconscious biases
in them. For Glaston, inclusion also
means both that we know each other
and Glastonians’ skills and strengths
well. This way, the company can bet-
ter involve people in different projects
and roles in which they can succeed.
In Glaston, equality is important,
and no discrimination or harassment
of any kind is permitted. All reported
cases of discrimination and harass-
ment are investigated and appropriate
action is taken where necessary. In
2023, three incidents were reported.
With the shift to remote and hybrid
working, Glaston has paid particu-
lar attention to employees’ coping
in work and physical condition. For
example, in Finland, Glaston offers its
personnel the opportunity to develop
mental well-being, joint hobby ses-
sions and exercise benefits as well as
the option of using a company bicycle.
Safety on the agenda
every day
Occupational safety is high on Glas-
ton’s agenda, and zero accidents
leading to absence has been set
as the Group-wide occupational
safety target. In order to create a
safety culture, safety standards as
well as the reporting of accidents
and near misses have been harmo-
nized throughout the Group. Through
improved reporting, the company is
also able to react better than before
to the resourcing of personnel during
absences.
Alongside reporting and operating
principles, a safe work culture is also
built on common safety awareness,
anticipation, and learning from near-
miss situations. A safe work culture
also means a sense of mental safety,
namely that everyone considers
themselves to be heard and seen as
part of the work community.
The work to develop a safety cul-
ture is continuous, and during 2023 it
included, for example, safety training
at all operating locations. Communi-
cation of safety issues is also tightly
integrated into the Group’s internal
channels.
In April, the Group-wide Safety
Week was held for the second time,
during which a large number of safe-
ty-related activities were organized,
such as fire drills and chemical man-
agement training at different operating
locations. In addition, during the week,
presentations were made of safe-
ty-improving projects implemented
at various operating locations, and
lessons learned for promoting occupa-
tional safety and health were shared.
Reporting of near-miss situations is
encouraged, and a new reporting tool
has been introduced to streamline the
reporting of situations and incidents.
Indeed, Glastonians’ safety awareness
has constantly improved and more
near-miss situations were reported
than before.
Safety management
The development and management
of safety at Glaston is the responsibil-
ity of a steering group consisting of
representatives of different functions
and locations that closely monitors
the development of indicators that
measure occupational safety. The
day-to-day management and devel-
opment of occupational safety is
the responsibility of the company’s
various units, and occupational safety
issues are discussed in local occupa-
tional safety committees. Occupa-
tional safety reviews are conducted
every three months and, based
on them, necessary measures are
agreed upon.
At all of Glaston’s assembly and pro-
duction units, fire and evacuation exer-
cises and occupational safety training
are organized regularly. Attention is
also paid to the ergonomics of work.
Glaston’s employees also work
on customers’ premises in product
installation, maintenance and training
tasks. Particularly when working on
premises other than Glaston’s own, it
is important to be able to build a safe
work environment even before start-
ing work, in order to minimize possible
risks and avoid accidents.
Glaston’s target is zero accidents
at work. This target has still not been
reached; in 2023, there was a total of
10 lost-time accidents at work or on
a business trip (six in 2022), and the
accident frequency was 6.3 (3.9 in
2022). The most typical accidents are
hand injuries, such as cuts and various
sprains.
Glaston Annual Review 2023 25
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Sustainable business as an opportunity
Glaston views the promotion of sus-
tainable development as an oppor-
tunity, and the company wants to be
involved in developing the sustainable
societies of the future. In addition,
Glaston is involved in creating industry
standards and practices in relation to
sustainability, such as for energy effi-
ciency and safety.
Glaston’s environmental work is
driven by the environmental and
climate change policy approved by
Sustainability targets:
• Glaston’s CO
2
emissions from
own operations (Scope 1 +
2) 50% down from 2022 level
and value chain (Scope 3) CO
2
emissions intensity down by
58% per m
2
of sold glass pro-
cessing capacity
Key strategic priorities:
• Drive down Scope 1 & 2 C0
2
emissions
• Evaluation of Scope 3 Sci-
ence-Based Targets
• Reducing Scope 3 emissions
the Board of Directors, which defines
a commitment to systematic reduc-
tion of environmental loading. Glas-
ton recognizes its responsibility for
environmental and climate impacts
throughout the company’s value
chain and proactively seeks to prevent
and mitigate potential environmen-
tal impacts and risks arising from its
operations.
To support sustainable consump-
tion, Glaston focuses on developing
and delivering sustainable, upgrade-
able and energy-efficient products.
Glaston also offers its customers
maintenance and modernization ser-
vices that can extend the life cycle of
the machines considerably.
In glass industry sustainability
issues, there is an emphasis on the
energy consumption of glass man-
ufacturing and further processing
and the emissions it generates. Glass
production processes consume a lot
of energy, and in Europe, for example,
the glass industry is dependent on
natural gas. In addition to energy effi-
ciency, Glaston encourages the glass
industry to improve glass recycling as
an important means of reducing the
carbon footprint of production.
Most of the glass processed on
Glaston’s machines ends up in con-
struction. The technologies developed
by Glaston enable the production
of energy-efficient insulating glass,
which has a significant positive cli-
mate impact. In addition, tempered or
heat-strengthened glass is a significant
component in solar panels, which ena-
ble emission-free electricity produc-
tion.
Energy-efficient
technology
The most significant environmen-
tal and climate-change impacts of
Glaston’s operations are associated
with the use of machines sold, par-
ticularly the electricity consumption of
tempering machines. The tempering
process, in which the glass is heated
to +600°C and then cooled back
down to room temperature, requires
a lot of electricity. Glaston’s product
development has long focused on
improving the energy efficiency of
machines, and in the tempering pro-
cess of coated energy-saving glass,
for example, electricity consumption
has been clearly reduced.
Through automation and contin-
uous technological development, it
is possible to efficiently optimize the
electricity consumption of machines
in both heating and cooling. Old pro-
duction lines can also be updated with
new technologies and innovations.
In product development, Glaston
focuses on the automation of core
processes, tempering, laminating
and the production of insulating glass.
Automation brings significant benefits
in terms of production efficiency and
quality, and reduces the amount of
glass waste in production. Automation
also optimizes energy consumption
by making processes more efficient.
For example, the energy used in
cooling the tempering process can be
reduced by up to 50% by optimizing
the use of the loading area. Automa-
tion also results in better safety, as
minimizing manual actions ensures a
safer working environment for all per-
sonnel. Glaston Autopilot is a model
example of how automation changes
glass tempering through intelligent
automation. Glaston Autopilot reduces
the need for machine operator input
by providing process control without
parameters. It automatically sets all
Glaston Annual Review 2023 26
Glaston 2023
Sustainability
Governance
Financial Review
the necessary parameters based on the positioning
of the glass sheet on the line, allowing the operator
to simply monitor the process.
Environmental impact management
and continuous improvement
Glaston’s own operations, which mainly consist of
the assembly of glass processing machinery, do not
pose a significant risk of air, water or soil pollution. In
the company’s activities, Glaston’s most significant
environmental impacts arise from energy con-
sumption and related emissions.
At Glaston’s assembly and production units, the
company operates in accordance with the ISO 9001
quality management system. In Finland, Glaston
manages and controls environmental issues linked
to production in accordance with a certified ISO
14001 environmental management system. Glas-
ton’s Executive Leadership Team and Board of
Directors monitor the development of the Group’s
environmental indicators annually. In addition, the
company’s premises undergo regular energy
audits, and the energy efficiency and low emission
levels of properties are constantly being developed.
For example, nearly 800 solar panels, with a total
capacity of more than 300 kWp, have already been
installed on the roof of the Bützberg production
plant in Switzerland. The panels produce energy for
the production plant’s own use, and some electric-
ity is also fed into the grid.
Glaston’s properties are not located in biodi-
versity-sensitive areas. The company is, however,
committed to monitoring any significant changes
“Promoting sustainability and the green transition is part of our
strategy: we offer a comprehensive range of machines and
services for the production of heat-treated glass, the manufac-
turing of insulating glass, and the processing of automotive and
display glass applications. Our product portfolio also includes
technologies for the production of solar cell glass.
For us, it is important to reduce the emissions caused by our
operations, a significant proportion of which is generated in our
value chain. In particular, the heat treatment processes involved
in the further processing of glass requires a lot of electricity.
In the tempering process, for example, glass is heated to high
temperature and then rapidly cooled. Tempered safety glass is
commonly used in construction, vehicles and solar panels.
In 2022, our absolute Scope 3 emissions increased by 192%
compared to the previous year, mainly due to the imputed elec-
tricity consumption of equipment sold for large production volumes in solar panel glass produc-
tion in Southeast Asia. In 2023 absolute emissions decreased by 53% compared with the previous
year. It is expected that we will continue to see significant fluctuation in our absolute emissions in
the coming years. The fluctuation in the amount of emissions largely comes down to the type of
machines our customers order from us and the availability of zero-emission energy in different
market areas. For this reason, we have set our value chain emissions reduction target in ratio to
sold glass processing capacity.
Glaston has been working for decades to reduce the electricity consumption of its products,
and achieving further improvements is no longer easy. We are already a frontrunner in the energy
efficiency of glass processing equipment, and in order to achieve the emission targets we have
set, we must further improve the energy efficiency of our equipment. The means available include
developing energy-saving innovations as well as more holistic solutions to support our customers in
achieving their emissions reduction goals,” says Marko Mökkönen, Director, Sustainability.
The goal: to reduce emissions
throughout the value chain
Glaston Annual Review 2023 27
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affecting biodiversity and ecosys-
tems and to taking proactive reme-
dial action. Biodiversity can also be
supported through small actions. For
example, in Bützberg in 2023, in con-
nection with the installation of new
charging stations, a flower meadow
was planted to replace a former lawn,
thus supporting local biodiversity.
Reducing emissions from own
operations
One of Glaston’s four strategic targets
has been to halve the CO
2
emissions
intensity (emissions in relation to net
sales) of the company’s own opera-
tions by 2025. This target was already
achieved in 2022 through investments
made in energy efficiency and use
of renewable energy as well as the
shift to using emission-free energy. In
Switzerland, for example, a new heat
distribution system will significantly
reduce natural gas consumption.
The achieved target was the first
step in Glaston’s climate work and the
bar has been raised again. At the end of
2023, the company committed to set-
ting science-based emissions reduc-
tion targets. Glaston is committed to
halving its absolute Scope 1 and Scope
2 emissions by 2032 compared with the
baseline year 2022. This target is in line
with limiting global warming to 1.5°C.
In order to achieve the emissions
reduction targets for its own oper-
ations, Glaston intends to phase out
the use of natural gas and other fossil
energy sources and to continue to
increase significantly the propor-
tion of renewable energy. In 2023, of
emissions from Glaston’s own oper-
ations, fuels and natural gas (Scope
1) accounted for around 45% and
electricity and district heat (Scope 2)
for around 55%.
Responsibility for emissions
throughout the value chain
Scope 1 and 2 emissions from Glas-
ton’s own operations represent a small
fraction of Glaston’s total emissions.
The majority, around 99%, of all
emissions associated with Glaston’s
activities arise in the company’s value
chain (Scope 3). The most significant
sources of emissions are the elec-
tricity consumed during the life cycle
of the machines manufactured by
Glaston (81%) and emissions arising
from purchased products and ser-
vices (17%).
A very important element of Glas-
ton’s science-based climate targets
is to reduce the energy consumption
and thereby the in-use emissions of
the machines the company manu-
factures. The continuously operating
Glaston is committed to setting company-wide science-based emissions
reduction targets. In accordance with the Paris Agreement, the sci-
ence-based targets are aimed at limiting global warming to 1.5°C.
Glaston’s emission reduction targets by 2032:
• Scope 1 (direct emissions) -50% of 2022 level, absolute emissions
• Scope 2 (purchased energy emissions) -50% of 2022 level, absolute
emissions
• Scope 3 (value chain emissions) -58% emission intensity (tCO
2
e/m²
of sold glass processing capacity)
The Scope 3 targets have been submitted to the Science-Based Targets
initiative (SBTi) for validation. The final emission reduction target is expected
to be published in autumn 2024.
The SBTi is a collaboration of the World Resources Institute (WRI), the World Wildlife Fund
(WWF), the UN Global Compact and CDP. The companies committed to the initiative set for
their operations science-based emissions reduction targets based on the emissions reduc-
tion targets of the Paris Agreement, that support measures to limit global warming to 1.5°C.
Science-based emissions targets
tempering lines used for high-volume
production consume significantly
more electricity than lower-volume
lines. Continuously operating
machines, on the other hand, are
more energy efficient.
Glaston’s annual Scope 3 emissions
are significantly affected by the type
of glass processing solutions that cus-
tomers purchase. Glaston supplies its
customers with different machines in
different years, which is why absolute
Scope 3 emissions fluctuate from year
to year. It is also to be assumed that,
as the number of new machines sold
increase, the company’s absolute
Scope 3 emissions will also increase.
In order for the reduction of emis-
sions caused by new glass process-
ing machines to be achievable in a
Glaston Annual Review 2023 28
Glaston 2023
Sustainability
Governance
Financial Review
relevant way, Glaston has committed
to reduce the intensity of its Scope 3
emissions by 58% per m2 of sold glass
processing capacity by 2032.
To achieve the Scope 3 intensity
target, Glaston will further improve the
energy efficiency of products sold,
support its customers in their emissions
reduction initiatives and reduce emis-
sions in other parts of the value chain.
Logistics account for a minor pro-
portion of Glaston’s total emissions.
Transport of manufactured machines
to customers is handled by forwarding
companies using land or sea transports.
Transport of smaller and urgent spare
parts is also handled by air freight.
Recycling of packaging
materials and waste
The primary aim is to prevent the
generation of waste. The goal is to
minimize the amount of waste, and
particularly the amount that ends
up other than in final disposal. The
packaging waste generated in Glas-
ton’s operations is sorted and either
recycled or used in energy produc-
tion. In 2023, the total amount of waste
decreased. However, the relative
amount of landfill waste increased due
to the increased production volume of
the Chinese factory.
2023 2022
Fuel oil, diesel and natural gas 3,711 2,852
Purchased electricity and heat 5,972 6,523
Total 9,683 9,375
2023 2022 2021 2020
Scope 1 552 605 708 678
Scope 2 686 886 1,900 2,099
Scope 3*
)
322,644 684,150 287,348
Total 323,883 685,641 289,956 2,777
Energy consumption (MWh)
Greenhouse gas emissions (tCO
2
e)
*
)
Scope 3 emissions calculated since 2021
Scope 1 Scope 2
2021
2022
2023
2020
Development of Scope 1 & 2 emissions
2,777
2,608
1,491
1,238
Scope 3 emissions by
category 2023
Purchased goods and services .. 17%
Use of sold products .......................... 81%
Other categories ....................................2%
Glaston’s greenhouse gas
emissions 2023
Sope 1 + 2 .................................. 0.4%
Scope 3................................... 99.6%
Waste disposal 2023
Recycling and energy ............ 87%
Landfill ................................................13%
Finland
Germany
China
Switzerland
2020
2021
2022
2023
2019
Waste by manufacturing unit, tonnes
400
452
447
405
365
Glaston Annual Review 2023 29
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Sustainability
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Financial Review
Generating economic
value added
Sustainable value creation requires
motivated and healthy employees,
competitive products and solutions
as well as satisfied customers and
responsible partners. Sustainable
operations facilitate Glaston’s ability to
fulfill its financial obligations towards
its key stakeholders.
Personnel salaries, payments to
goods and service providers, social
taxes, and potential dividends and
returns of capital to shareholders are
Glaston’s most important obligations,
as are the means to create economic
value added.
In 2023, Glaston Group’s net sales
totaled EUR 219.7 million, of which
service operations accounted for
35%. Glaston acquired materials,
products and services totaling EUR
140 million. Glaston had an average of
804 employees in 2023. Salaries and
bonuses to personnel totaled EUR 57.8
million and pension expenses EUR 4.9
million. The company’s investments in
product development totaled EUR 3.8
million.
Responsible business
Tax policy
The tax policy approved by Glas-
ton’s Board of Directors sets out the
company’s tax strategy and forms the
general framework for Glaston’s tax
administration, internal responsibilities
and risk management as well as key
measures and audits. The principles of
the tax policy also apply to Glaston’s
external service providers.
Glaston does not engage in
aggressive tax planning nor artificial
transactions or structures whose
purpose is to produce tax advantages.
Glaston Group companies are located
solely for business reasons. Respon-
sible tax planning and the utilization
of legal tax advantages and incen-
tives are, however, acceptable when
related to commercial activities.
2023 2022
Value added generated
Customers Net sales 219,708 213,520
Other operating income 2,488 3,583
Value added distributed
Suppliers Purchased goods, materials and services 139,509 138,047
Employees Salaries, bonuses and social expenses 57,853 54,673
Employees Pensions paid 4,869 4,163
Financiers Financial expenses 854 2,189
Owners Dividend/return of capital 3,372 2,529
Public sector Taxes 1,140 707
Business development R&D, investments 6,896 7,654
Personnel, average 804 775
Value added generated and distributed
Glaston Annual Review 2023 30
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Governance
Financial Review
Value added generated and distributed
Net sales from
customers
219.7
€ Million
Materials
-94.9
€ Million
Subcontracting
and maintetance
-8.3
€ Million
Freight expenses
-4.6
€ Million
Electricity, heating
-1.1
€ Million
Other expenses
-30.5
€ Million
Salaries, bonuses and
social expenses
-57.9
€ Million
Purchased goods,
materials and services
-139.5
€ Million
Financial
expenses
-0.9
€ Million
R&D,
investments
-6.9
€ Million
Dividend/return of
capital
-3.4
€ Million
Taxes
-1.1
€ Million
Pensions
-4.9
€ Million
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Responsible
sourcing
Suppliers
• Supplier requirements,
assessments and audits
• Human rights and workplace
safety in the supply chain
• Anti-corruption in the supply
chain and sourcing
• Environmental issues in the
supply chain
Glaston Annual Review 2023 32
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Developing sustainable
sourcing
In its Code of Conduct, Glaston
undertakes to promote fair compe-
tition, act fairly towards its suppliers,
service providers and subcontractors,
and respect human rights in all of its
activities. The company’s Policy for
Human Rights addresses, for example,
the right of everyone working in Glas-
ton’s value chain to health and safety,
good working conditions, a living
wage and equal and non-discrimina-
tory treatment.
Fair and honest business
Suppliers of goods and services
play an important role in Glaston’s
value chain. Most of Glaston’s approx-
imately 2,000 active subcontractors
operate in Europe, where the compa-
ny’s largest assembly and production
units are located. Glaston’s factories
in Finland, Switzerland and China
assemble machines, while its factory
in Germany manufactures machines.
Over 90% of Glaston’s purchases
come from the EMEA area, with the
remainder coming from, among other
places, Asia and the USA. The most
significant materials purchased for
machine manufacturing include steel
structures, electrical and automation
components, power centers and pro-
cess blowers.
Supply chain disruptions related to
the availability of raw materials and
components impact Glaston’s busi-
ness to some extent. One of Glaston’s
strategic cornerstone initiatives is
Master global sourcing and manu-
facturing, the objective of which is
to improve operational efficiency
through more harmonized sourcing
and manufacturing processes. In this
work, an important element is respon-
Sustainability targets:
• Main suppliers’ commitment
to Glaston’s Supplier Code of
Conduct 100%
Key strategic priorities:
• Defining supplier audit model,
and the launch of audits
• Supplier Code of Conduct
implementation
• Scope 3 reduction actions
towards suppliers
Suppliers per region, % Purchases per region, %
EMEA .......................... 84%
Americas ...................... 1%
Asia ................................15%
EMEA ...........................92%
Americas ................0.4%
Asia .................................8%
Glaston Annual Review 2023 33
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Financial Review
sible sourcing, which includes, among
other things, supplier requirements
and audits as well as safeguarding
human rights and workplace safety. In
addition, anti-corruption in the supply
chain and sourcing is systematically
developed.
Glaston requires its suppliers to
commit to the company’s Supplier
Code of Conduct. The Glaston Sup-
plier Code of Conduct is published in
Finnish, English, German and Chinese
and is available on the company’s
website. The Supplier Code of Con-
duct has been incorporated into
purchase agreements, so in the future
all Glaston suppliers will be required to
commit to it. By the end of 2023, 74%
of main suppliers had committed to
the Code of Conduct.
Glaston has processes in place to
assess and manage risks related to
supplier performance. These pro-
cesses are also being constantly
developed to assess human rights
impacts. For example, Glaston’s sup-
plier audit model has been developed
and, in addition to quality, price and
security of supply, the audits take into
consideration the sustainability of sup-
pliers and due diligence assessment
related to human rights.
Development of the supplier audit
model continued in 2023 and will be
rolled out in 2024. The functioning of
the model will be monitored and, if
necessary, further developed. The aim
of the revision is to take sustainability
better into account and to harmonize
the supplier audit method used in all
Glaston’s operating countries as well
as the documentation of data.
Glaston selects its suppliers
carefully, and seeks long-term, good
relationships with its most important
suppliers. In this way, the company
ensures that its partners understand
and comply with its requirements, in
relation to both processes and prod-
ucts. Glaston accepts as its suppliers
only companies that are not subject
to sanctions of any kind and have not
committed any regulatory offences.
Fair business starts with own activities
Glaston is committed to combating
bribery and corruption, which can
occur in both sourcing and sales.
Glaston’s anti-bribery and anti-cor-
ruption policy clearly sets out the
company’s approach and increases
employees’ awareness of the risk
of corrupt payments, unequivocally
prohibits the payment and receipt of
bribes, and ensures that the company
conducts business in accordance with
fair ground rules.
Glaston takes competition rules
very seriously and every employee
must act in accordance with them.
Glaston complies internationally with
EU competition legislation, while also
taking into account all stricter local
rules. Any violations or suspicions of
improper activity or payments can be
reported anonymously via Glaston’s
whistleblowing channel.
Glaston regularly arranges training
for its personnel on fair business and
competition issues. In addition, the
training materials are always available
on the company’s intranet.
In 2023, anti-bribery and anti-cor-
ruption training was updated, and
the revised training will be rolled
out Group-wide in 2024. Training is
arranged particularly for the compa-
ny’s management and sales organi-
zation as well as for other individuals
whose working duties involve an
increased risk of corruption.
Glaston Annual Review 2023 34
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Sustainability
Governance
Financial Review
Responsible
partner
Customer
• User experience and customer
satisfaction
Products & Services
• Machine quality, reliability and longevity,
life-cycle management
• Safe operation of machines and user
training for customers
• Digitalization and automation
• Information security
• Energy and material efficiency targeting
circular economy
• End product quality, safety and
recyclability
Glaston Annual Review 2023 35
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At the heart of Glaston’s strategy and
values is success with its customers.
The company is constantly developing
its operating practices, which increase
the value received by customers and
improve the customer experience.
One of Glaston’s strategic cor-
nerstone initiatives is Innovate with
customers to win, which focuses on
understanding customers’ needs and
Market’s best customer experience
Sustainability targets:
• Industry’s best customer
experience, NPS over 40
Key strategic priorities:
• Business strategy: product
development & customer
experience, digitalization &
automation
• Sustainability integrated into
offering development
• Machine energy and material
efficiency targeting circular
economy
• LCA and circularity assess-
ment of selected products
its seamless integration with our inno-
vation and development work.
As the operating environment
changes, higher quality and more ver-
satile features are continually required
from end products. Production
machines must be able to produce
larger, more uniform and thinner glass
surfaces, and production must also be
able to adapt flexibly to making differ-
ent types of glass. Glaston develops
technologies and solutions that meet
these changing customer needs, and
product development work is often
done in partnership with customers.
One of Glaston’s strategic targets is
related to customer satisfaction. The
target is that customers’ recommen-
Customer support throughout the life cycle
Glaston invests in the development of
digital services. Connecting machines
to the Glaston Insight cloud service
facilitates for the customer real-time
support in the event of disruptions with
no delays
We engineer our products and
services for sustainable use through
high quality materials and leading
process designs
We provide training to our
customers securing improved
glass quality and production
efficiency with minimized
waste
In spare parts, we focus on quality,
durability and availability through
regional delivery centers, reducing lead
times and the adverse environmental
impact of transports
Modernizing a machine with new
technology extends its life cycle and
reduces energy consumption in glass
processing. We offer digital services to
improve productivity
Our remote monitoring and support with
predictive and preventative maintenance allows
shutdown planning and reduces unplanned
repairs for high end product quality and overall
equipment efficiencies
Engineered for
sustainability
The goal of life cycle
services is safe and
efficient use of the
machines
Spare parts &
consumables
Maintenance
services
New machines
and equipment
Modernization
products and
upgrades
Glaston Annual Review 2023 36
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Governance
Financial Review
dation rate (Net Promoter Score, NPS)
is above 40. Glaston’s customer survey
has been developed to cover a wider
range of customers in different busi-
ness areas and geographical regions.
The customer recommendation rate
(NPS) was 62 in 2023. As the number
of respondents remains relatively low,
the results cannot be considered fully
representative. In 2024, the efforts to
increase the number of responses
from all customer segments and
regions will continue.
Safe use and customer support
throughout the life cycle
Glass processing machines are long-
term investments for their owners as,
depending on the machine, they can
have decades-long operating lives.
Glaston’s machines are designed
to withstand constant use at high
utilization rates. The company inter-
acts closely with customers, as the
machines are regularly serviced to
ensure consistent performance.
Glaston’s production and assembly
processes and installation methods
are designed to promote product reli-
ability as well as the safety of installers
and customers. All Glaston machines
manufactured in Europe comply with
the EU Machinery Directive. The Direc-
tive requires manufacturers to carry
Martin Werner, Technical Manager at FLACHGLAS Wernberg GmbH, tells
about the company’s latest blower inverter modernizations on two tem-
pering lines: “Upgrades are a very good opportunity to improve energy
consumption. Simply by changing the furnace or adding new compo-
nents, we have achieved better process quality. We can also do some-
thing good for the environment by running our machines for longer. And
most importantly, the upgrades help us save money. Our oldest Glaston
tempering furnace has been producing glass for over 30 years, a good
example of machine durability and quality.”
FLACHGLAS Wernberg GmbH in
Germany improves overall energy
management with Glaston upgrade
products
out, among other things, a risk analysis
of the machine, including possible
risks to personnel during the various
stages of the machine’s use.
Glaston has a total of approximately
4,000 installed and operating machine
lines. In accordance with its life cycle
model, Glaston has been actively
developing its maintenance services,
as regular service intervals increase
product life and safety. Glaston has
over 100 different upgrade prod-
ucts for different machine models.
Modernizing a machine with new
technology extends its operating life,
improves end product quality and
production process efficiency, and
reduces energy consumption in glass
processing.
Remote monitoring and support
based on proactive and preventive
maintenance enable outage plan-
ning and reduce unplanned repairs.
Glaston also offers its customers
training and support as well as digital
services to improve productivity and
glass quality. Connecting machines
to the Glaston Insight cloud service
enables the customer to monitor and
report on production in real time, and
provides rapid customer support in
the event of disruptions.
Glaston Annual Review 2023 37
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Developer of demanding products
Glaston is the frontrunner in the glass
industry, and is known for its high
quality. The company’s position is
particularly strong as a developer of
the most technologically demanding
products. Glaston carries out product
development in close cooperation
with its customers and partners, such
as research institutes, universities and
other higher education institutions.
The main themes of Glaston’s
product development are projects
and innovations related to glass pro-
cessing and robotics that facilitate
the transition towards fully automated
glass processing.
One of Glaston’s latest innovations
is the tempering process Autopilot,
which is based on the same solutions
used in autonomous passenger cars.
Autopilot presages a huge change for
the entire glass processing industry,
as it minimizes the need for machine
operator input and offers process
control without parameters.
Through automation, Glaston helps
its customers to produce higher qual-
ity glass continuously at a higher uti-
lization rate. In addition to quality and
reliability, optimization also improves
energy and material consumption and
reduces wastage.
In the glass processing industry, use of automa-
tion is still very much in its infancy and, instead of
automation, the industry has relied on skilled labor
to ensure high-quality products.
The automation used has mainly focused on
long production series and high-capacity pro-
cessing. However, automated solutions are also
suitable for different production needs, and they
can process glass flexibly and versatilely, even in
mixed production.
Nearly every stage of glass processing can
benefit from automation. For example, automated
loading and unloading improves the efficiency,
quality and safety of glass production. Automation
can also be used to optimize the energy con-
sumption of machines and reduce the need for
manual tasks.
For example, one of our flagship products, Glas-
ton Autopilot, is designed to automate glass tempering lines. The Autopilot automatically sets all the necessary
parameters based on the position of the glass sheet, leaving the operator to simply monitor the process. Machine
operators with less glass processing experience can easily manage these systems, which helps glass processors
struggling with the challenges of finding a skilled workforce.
In the glass processing industry, automation offers a significant path to meeting the challenges posed by labor
shortages, stricter legislation and safety regulations, and energy costs.
Automation will
revolutionize the future
of glass processing
Glaston Annual Review 2023 38
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Sustainable tomorrow
• Indirect impacts on energy-efficient cities
and societies
• Indirect energy and emission reductions
• Indirect material reductions
• Sustainable end-product applications
• Development of the industry, research
cooperation
• Contributing to the decarbonization of
societies
Responsible
member
of society
Glaston Annual Review 2023 39
Glaston 2023
Sustainability
Governance
Financial Review
Glaston is actively and diversely
involved in developing its industry. The
company promotes the development
of both the industry and its technol-
ogies in our operations and with our
partners. One of Glaston’s five stra-
tegic cornerstone initiatives is Lead
digital transformation, which includes
building digital tools and infrastructure
across all Glaston operations to lead
the industry’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
Technology leader, developing the glass industry
• 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 in ISO’s (Inter-
national Organization for Standardiza-
tion) working groups preparing safety
glass (tempered and laminated glass)
standards. Via these, Glaston is able to
influence the creation of industry stand-
ards and communicate through practical
experience the needs and requirements
that the standards should cover.
Glaston works closely with various
research institutes and higher education
institutions. Key partners include VTT
Technical Research Center of Finland, the
University of Tampere, Business Finland,
the Fraunhofer Institutes in Germany, and
universities in Switzerland. The company
also actively offers summer, graduate
Key strategic priorities:
• Glass Performance Days to
promote glass industry devel-
opment
• Contributing to reducing GHG
emissions in glass processing
• Start-up and research
cooperation
As the skills gap grows, it is increasingly
important to invest in training young talent.
Glaston Germany has been training its own
experts in industrial professions for decades.
Two apprenticeship managers currently
supervise a total of 21 apprenticeship stu-
dents, who complete four years of electrical
or mechanical engineering training.
Glaston Germany places particular emphasis on value-added training, in
which young people are given their own projects at a very early stage. This
takes place in the company’s own apprenticeship workshop, which has a
wide range of machines and tools.
Activities are based on a modern training method, which is always
adapted to suit the “current generation”. All apprentice students are sup-
ported in a variety of ways, from recruitment to transfer to a department.
Insulating glass production plants use diverse technology, so Glaston Ger-
many provides young people with high-quality training that is highly valued
in the region.
Glaston Germany is particularly proud of the fact that many of its
apprenticeship students have been among the best in their class. This
encourages the company to continue to invest in young talent in the
future.
Through an
apprenticeship
into working life
Glaston Annual Review 2023 40
Glaston 2023
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Governance
Financial Review
thesis and trainee job positions to talent of the future. In
Germany, the company has its own apprenticeship pro-
gram. In addition, Glaston’s conducts development and
engineering projects in new glass technologies.
Glass Performance Days promoting development of
glass industry
The Glass Performance Days (GDP) conferences, organ-
ized by Glaston, are among the glass industry’s most pres-
tigious events and bring together the entire industry, from
researchers, architects and designers to glass producers,
processors, equipment suppliers and end users.
After a four-year break, the GPD was held in Tampere
in summer 2023. Sustainable business was on the agenda
of the event, and the commitment of industry actors to a
sustainable future and sustainability work was strongly on
display.
The GDP conferences aim to disseminate the latest
information among industry actors and to promote the
development of new areas of application and techno-
logical features. A key part of the GPD conference is the
Step Change program, which aims to showcase, bring
together and promote new technologies, research groups
and startup companies. The program aims to promote the
commercialization and utilization of innovations in the glass
industry by connecting startups and growth companies
with established glass industry players. Glaston has been
organizing GPD conferences since 1992, and they have
been attended by thousands of glass professionals from
around the world.
Glaston is participating in the Ahlström
Collective Impact (ACI) initiative, launched
in 2020, which operates in collaboration
with UNICEF Finland. By connecting the
companies and foundations of the Ahlström
network, the initiative enhances the impact
of individual organizations, with the aim of
improving the lives of children worldwide.
In 2023, ACI continued its support for
UNICEF’s Global Education Program. An
investment of nearly EUR 800,000 went
towards the program, which provides sup-
port to millions of children who need the
opportunity to continue their education and
develop skills to succeed in life.
ACI cooperation is strongly aligned with
Glaston’s value Together we build the future.
Securing children’s future means secur-
ing their education. More than 600 million
children and young people worldwide do
not reach the minimum level in reading and
mathematics, even though two-thirds of
them attend school.
As part of the collaboration, UNICEF
Finland provided training to the staff of ACI
companies and foundations on children’s
rights and how to take them into account in
business. In addition to general orientation,
the webinars focused on, for example, issues
such as children’s rights in supply chains and
creating family-friendly workplaces. Glaston
personnel also participated in these events.
By joining forces with the Ahlström net-
work companies and by increasing our own
understanding, Glaston can better contrib-
ute to a better future for children.
Joint support for children’s future
AHLSTRÖM COLLECTIVE IMPACT
In 2023, in addition to Glaston, the ACI network con-
sisted of Ahlström Capital, Ahlstrom, Antti Ahlström
Perilliset, Ahlström Invest, Walter Ahlström Foundation,
Destia, Enics, Detection Technology, M&J Recycling,
Avain Yhtiöt, Suominen, and Eva Ahlström Foundation,
the founder of the network.
Glaston Annual Review 2023 41
Glaston 2023
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Governance
Financial Review
GOVERNANCE
Corporate Governance Statement 2023 ............................. 43
Remuneration Report for Governing Bodies 2023 ......... 55
Glaston 2023
Sustainability
Governance
Financial Review
Glaston Corporation’s administration
and management are based on the
Company’s Articles of Association, the
Finnish Companies Act and Securities
Markets Act, and the rules and guide-
lines of Nasdaq Helsinki Ltd. In addi-
tion, Glaston complies with the Finnish
Corporate Governance Code 2020
(also the “Corporate Governance
Code”), which is publicly available at:
www.cgfinland.fi.
Corporate Governance Statement 2023
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
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 2023.
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 Leadership Team.
Board of Directors
The Board of Directors is responsible
for the appropriate arrangement of
the Company's administration and
operations. The Board of Directors
consists of minimum of five and a
maximum of nine members elected
by a General Meeting of Shareholders.
The term of office of Members of the
Board of Directors expires at the end
of the next Annual General Meeting
that follows their election.
Under Recommendation 10 of
the Corporate Governance Code, a
majority of Members of the Board of
Directors shall be independent of the
Company, and at least two Members
who are independent of the Com-
pany shall also be independent of the
Company’s significant shareholders.
The shareholders’ 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, atten-
tion shall be paid to the diversity of
the Board of Directors, which means,
among other things, that the mem-
bers’ experience and competence
in the Company’s field of business
and development stage are mutually
complementary. In addition, educa-
tion, 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
Governance model December 31, 2023
Business
Areas and
Functions
Business
Areas and
Functions
Business
Areas and
Functions
GENERAL MEETING OF SHAREHOLDERS
People and Remuneration
Committee
Audit Committee
CEO
EXECUTIVE LEADERSHIP TEAM
Administration, Group functions
Shareholders
Shareholders'
Nomination Board
Internal control
Risk Management
Financial
Reporting
BOARD OF DIRECTORS
Auditor
Internal
Audit
Glaston Annual Review 2023 43
Glaston 2023
Sustainability
Governance
Financial Review
with the notice to attend an Annual
General Meeting.
The Board of Directors shall elect
from among its members a Chair and
a Deputy Chair to serve for one year
at a time. The Board of Directors has a
quorum if more than half of its mem-
bers are present at the meeting.
The Board of Directors’ tasks and
responsibilities are determined by the
Company’s Articles of Association,
the Finnish Companies Act and other
legislation and regulations. It is the
responsibility of the Board of Directors
to further the interests of the Com-
pany and all of its shareholders.
The main duties and operating
principles of the Board of Directors are
defined in the board charter approved
by the Board. It is the Board’s duty to
prepare the matters to be dealt with
by a General Meeting and to ensure
that the decisions made by a General
Meeting are appropriately imple-
mented. It is also the Board’s task to
ensure the appropriate arrangement
of the control of the Company’s
accounts and finances. In addition,
the Board directs and supervises the
Company’s executive leadership,
appoints and dismisses the President
& CEO and decides on the President
& CEO’s employment and other bene-
fits. In addition, the Chair of the Board
approves the salary and other benefits
of the Executive Leadership Team.
The Board approves the Executive
Leadership Team’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 report-
ing process of the financial state-
ments, the financial reporting process
and the efficiency of the Company's
internal control, internal auditing, and
risk management systems pertaining
to the financial reporting process,
monitoring the statutory audit of the
financial statements and consolidated
financial statements, evaluating the
independence of the statutory auditor
or audit firm, particularly with respect
to the provision 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
Leadership Team may also attend
meetings of the Board. The Auditor
attends all Audit Committee meetings
and at least one Board meeting per
year.
Board of Directors in 2023
At the Annual General Meeting, held
on April 4, 2023, the Members of the
Board of Directors Veli-Matti Reinik-
kala, Sebastian Bondestam, Antti Kau-
nonen, Sarlotta Narjus, Arja Talma, Tero
Telaranta and Michael Willome were
re-elected as members of the Board
of Directors. The Board of Directors
was elected for a term of office end-
ing at the closing of the next Annual
General Meeting.
In 2023, Veli-Matti Reinikkala has
served as Chair of the Board, and
Sebastian Bondestam as Deputy
Chair.
In 2023, the Board evaluated its per-
formance and procedures through an
evaluation conducted by a third party.
In the evaluation, the members con-
sidered, among other things, diversity
of the Board, the quality of the Board
and committee work and information
sharing between the Board and the
management. The results of the eval-
uation were discussed and analyzed
by the Board and improvement pro-
posals were agreed based on these
discussions.
In 2023, key themes on the Board’s
agenda were the implementation of
the company’s strategy for 2021−2025
as well as planning and follow-up of
the strategic initiatives. In addition,
planning and following-up the exe-
cution of Glaston’s new organization
that came into force as of October
1, 2023 and the implications of the
organizational change on the strategy
were on the agenda. Toward the end
of the year the resignation of the CEO,
Glaston Annual Review 2023 44
Glaston 2023
Sustainability
Governance
Financial Review
appointing the interim CEO and the
recruitment process of the new CEO
were handled.
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 except for Antti
Kaunonen, who took over the role as
interim CEO as of November 15, 2023.
Board Members Tero Telaranta and
Sebastian Bondestam are depend-
ent on a significant shareholder of
the Company, Ahlstrom Capital B.V.,
whose ownership was 26.39% on
December 31, 2023. The Members of
the Board have no conflicts of interest
between the duties they have in the
Company and their private interests.
General Counsel Kaisa Latva served
as the secretary to the Board of Direc-
tors.
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 2023.
Glaston Annual Review 2023 45
Glaston 2023
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Governance
Financial Review
Members of the Board of Directors December 31, 2023
Member of the Board Member since Independence Year of birth
Share ownership on
December 31, 2023 Education Main occupation
Veli-Matti Reinikkala 2020,
Chair of the Board
Independent of the company
and of significant shareholders
1957 825,042 shares eMBA, Non-
executive
Director
Board Professional
Sebastian
Bondestam
2018,
Deputy Chair of
the Board
Independent of the company,
dependent on a significant
shareholders
1962 69,456 shares M.Sc.(Eng.) Uponor Infra Oy, President;
Uponor Corporation,
Deputy to the CEO
Antti Kaunonen 2018 Dependent of the company,
independent of significant
shareholders
1959 162,686 shares D.SC.(Tech),
MBA
Board member and Advisor.
As of November 15, 2023
interim CEO at Glaston
Sarlotta Narjus 2016 Independent of the company
and of significant shareholders
1966 no shares M.Sc. Archi-
tecture SAFA
SARC Architects Ltd,
CEO
Arja Talma 2021 Independent of the company
and of significant shareholders
1962 36,681 shares M.Sc. (Econ.),
eMBA
Board Professional
Tero Telaranta 2017 Independent of the company,
dependent on a significant
shareholder
1971 37,057 shares M.Sc.(Eng.),
M.Sc.(Econ.)
A.Ahlström Oy, Director,
Industrial Investments
Michael Willome 2020 Independent of the company
and of significant shareholders
1966 no shares lic. oec HSG,
M.A.
Synthomer Plc, Group Chief
Executive Officer
Glaston Annual Review 2023 46
Glaston 2023
Sustainability
Governance
Financial Review
Board
meetings
Audit
Committee
People and
Remuneration
Committee
Veli-Matti Reinikkala 12/12 3/4
Sebastian Bondestam 12/12 4/4
Antti Kaunonen 12/12 3/3
Sarlotta Narjus 12/12 5/5
Arja Talma 12/12 5/5
Tero Telaranta 12/12 5/5
Michael Willome 12/12 4/4
Committees of the Board of Directors
Glaston’s Board of Directors has two
committees: the Audit Committee
and the People and Remuneration
Committee. The Board of Directors
appoints the members and chairs of
the committees, taking into account
the expertise and experience required
for the duties of the committees.
The members of the committees are
appointed for the term of office of the
Board of Directors. The committees
are preparatory bodies of the Board
of Directors and do not have their own
decision-making power.
Audit Committee
The Audit Committee assists the
Board of Directors by preparing
matters within the competence of
the Board of Directors. The Commit-
tee reports to the Board of Directors
on matters discussed and measures
taken at least four times a year and
makes proposals to the Board for
decision-making, if necessary.
The Board of Directors specifies
the duties of the Audit Committee in
a charter confirmed by the Board of
Directors. The Audit Committee over-
sees the financial reporting process
and monitors the effectiveness of
internal control, internal audit and risk
management systems. In addition, the
Committee reviews the description
of the main features of the internal
control and risk management systems
associated with the financial reporting
process, monitors the statutory audit
of the financial statements and the
consolidated financial statements,
evaluates the independence of the
statutory audit firm and prepares a
proposal for the election and remu-
neration of the auditor. Other duties
include evaluating compliance with
laws, regulations and corporate prac-
tices, overseeing significant litigation
concerning Group companies, and
performing any other duties assigned
to the Committee by the Board of
Directors.
The Audit Committee carries out
self-evaluation of its work annually,
and the Chair of the Committee
reports the results to the Board of
Directors.
Audit Committee in 2023
On December 15, 2022, Glaston Cor-
poration’s Board of Directors decided
on changes in the composition of the
Board of Directors’ Audit Committee
and the changes entered into force
on January 1, 2023. Until the Annual
General Meeting on April 4, 2023, Arja
Talma served as Chair, and Sarlotta
Narjus and Tero Telaranta as members
of the Audit Committee. The mem-
bers of the Audit Committee were
independent of the Company. Tero
Telaranta is dependent on a signif-
icant shareholder of the Company.
As of April 4, 2023, the composition
of the Audit Committee remained
unchanged, and Arja Talma served
as Chair, and Sarlotta Narjus and Tero
Telaranta as members of the Audit
Committee.
In 2023, the Audit Committee met
five times. The meeting attendance is
reported in the table to the left.
In 2023, the committee selected an
outsourced internal audit service pro-
vider and agreed on an internal audit
charter besides its regular reviews
of financial reporting, audit and risk
management.
People and Remuneration Committee
The People and Remuneration Com-
mittee assists the Board of Direc-
tors by preparing matters within the
competence of the Board of Directors.
The Board of Directors is responsible
for the duties it assigns to the Com-
mittee.
The Board of Directors specifies the
duties of the People and Remuner-
ation Committee in a charter con-
firmed by the Board of Directors. Key
duties of the Committee include pre-
paring the remuneration policy and
remuneration report for the Board and
the Annual General Meeting, prepar-
ing salaries and other benefits of Glas-
ton’s CEO and other members of the
Executive Leadership Team, preparing
the nomination of the CEO and other
members of the Executive Leadership
Meeting attendance of Members of the Board 2023
In 2023, Glaston’s Board of Directors convened 12 times.
The meeting attendance is reported on the next page.
Glaston Annual Review 2023 47
Glaston 2023
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Team and their successors, and pre-
paring proposals for Glaston's short-
and long-term incentive schemes as
well as monitoring the company’s key
personnel’s successor and develop-
ment plan. In addition, the Commit-
tee's duties include carrying out all
other duties assigned to the Commit-
tee by the Board of Directors.
The People and Remuneration
Committee convenes at the invita-
tion of the Chair, as necessary and at
least twice a year. The Members of the
Board of Directors and the CEO have
the right to attend the meetings of the
Committee.
The People and Remuneration
Committee regularly carries out
self-evaluation of its work, and the
Chair of the Committee reports the
results to the Board of Directors.
People and Remuneration
Committee in 2023
On December 15, 2022, Glaston Cor-
poration’s Board of Directors decided
on changes in the composition of the
Board of Directors’ People and Remu-
neration Committee and the changes
entered into force on January 1, 2023.
Until the Annual General Meeting
on April 4, 2023, Veli-Matti Reinik-
kala served as Chair, and Sebastian
Bondestam, Sarlotta Narjus, Antti Kau-
nonen and Michael Willome as mem-
bers of the People and Remuneration
Committee. After the Annual General
Meeting, Veli-Matti Reinikkala contin-
ued as Chair, with Sebastian Bondes-
tam, Antti Kaunonen, Sarlotta Narjus,
and Michael Willome as members of
the committee. The members of the
People and Remuneration Committee
were independent of the Company.
Sebastian Bondestam is dependent
on a significant shareholder of the
Company.
On November 15, 2023, the Board of
Directors nominated Antti Kaunonen
as the interim CEO of the company
and he stepped down from his role as
a member of the People and Remu-
neration Committee.
In 2023, the People and Remuner-
ation Committee met four times. The
meeting attendance is reported in
the table above. On the committee’s
agenda were the incentive program
for top management and the out-
come of the same, top management
review and remuneration as well as a
talent review follow-up. In accordance
with its duties, the committee also
started to prepare the appointment
of Glaston’s new President & CEO. 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 shareholders, who appoint one
member each. The Chair of the Com-
pany’s Board of Directors serves as an
advisory member of the Nomination
Board.
The Company’s largest share-
holders entitled to appoint members
to the Nomination Board are deter-
mined annually on the basis of the
registered holdings in the company’s
shareholder register held by Euroclear
Finland Ltd on the first working day
in September of the year in question.
The Nomination Board elects a Chair
from among its members.
The Nomination Board is estab-
lished to serve until a General Meeting
of Shareholders decides otherwise.
The members of the Nomination
Board are appointed annually and the
term of office of the members expires
when new members are appointed to
the Board.
The members of the Nomination
Board shall be independent of the
company, and no person belonging to
the Company’s executive leadership
shall be a member of the Nomination
Board.
The Nomination Board shall submit
its proposals to the Company’s Board
of Directors annually by the end of
January preceding the Annual General
Meeting. Proposals for an Extraordi-
nary General Meeting shall be sub-
mitted to the Company’s Board of
Directors so that they can be included
in the notice to attend the meeting.
A decision of the Nomination Board
shall be the opinion of a majority of the
members of the Nomination Board.
If the votes are tied, then the Chair’s
vote shall be decisive. If the votes are
tied in the election of the Chair, the
member candidate for Chair nomi-
nated by the shareholder who had the
Glaston Annual Review 2023 48
Glaston 2023
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Financial Review
largest number of shares when the
Nomination Board was established
shall be elected as Chair.
A report on the activities of the
Nomination Board shall be presented
at the Annual General Meeting and
published on the Company’s website.
Shareholders’ Nomination Board 2023
Until August 31, 2023, the Shareholders’
Nomination Board comprised of Lasse
Heinonen (Chair), as the represent-
ative nominated by Ahlstrom Capital
B.V., Jaakko Kurikka, as the represent-
ative nominated by Hymy Lahtinen Oy,
Pekka Pajamo, as the representative
nominated by Varma Mutual Pension
Insurance Company, and Esko Torsti,
as the representative nominated by
llmarinen Mutual Pension Insurance
Company.
In accordance with its charter, the
Nomination Board prepared its pro-
posal concerning the Board compo-
sition and remuneration to the AGM
2023. The Nomination Board proposed
that the number of members of the
Board of Directors would be seven
and that Sebastian Bondestam, Antti
Kaunonen, Sarlotta Narjus, Veli-Matti
Reinikkala, Arja Talma, Tero Telaranta
and Michael Willome be re-elected
as Members of the Board of Direc-
tors. The Nomination Board proposed
that the annual remuneration of the
Members of the Board of Directors
would remain unchanged and to be as
follows: Chair EUR 70,000, Vice Chair
EUR 43,000 and Members EUR 33,000.
In addition, the Nomination Board pro-
posed that meeting fees shall be paid
in accordance with earlier practice for
each meeting of the Board of Direc-
tors that a Member of the Board has
attended as follows: EUR 800 to the
Chair of the Board for meetings held
in the Chair’s home country and EUR
1,500 for meetings held elsewhere;
EUR 500 to other Members of the
Board for meetings held in the home
country of the respective Member
and EUR 1,000 for meetings held else-
where and for per capsulam Board
Meetings half of the normal fee shall
be paid.
Based on ownership on September
1, 2023, the Shareholders’ Nomina-
tion Board remained unchanged and
comprised of Lasse Heinonen, as the
representative nominated by Ahlstrom
Capital B.V., Jaakko Kurikka, as the
representative nominated by Hymy
Lahtinen Oy, Pekka Pajamo, as the
representative nominated by Varma
Mutual Pension Insurance Company,
and Esko Torsti, as the representative
nominated by llmarinen Mutual Pen-
sion Insurance Company. Veli-Matti
Reinikkala, Chair of the Glaston Corpo-
ration’s Board of Directors, served as
an advisory member of the Nomina-
tion Board.
In its organizing meeting on Sep-
tember 7, 2023, the Nomination Board
elected Lasse Heinonen amongst its
members as the Chair. The Board met
two times during 2023 and the aver-
age attendance of members was 92%.
No fees were paid to the members of
the Nomination Board.
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 Leadership Team.
Anders Dahlblom served as Presi-
dent & CEO of the company from Jan-
uary 1, 2021 until November 15, 2023,
when he resigned due to personal
reasons. In connection with this, Glas-
ton’s Board of Directors nominated
Board member Antti Kaunonen as the
interim CEO as of the same date.
Deputy CEO
Sasu Koivumäki, CSO (Chief Sales
Officer), has served as Deputy CEO
since January 1, 2015. The Deputy CEO
carries out the duties of the CEO after
the termination of his/her service or
when he/she is temporarily prevented
from performing his/her duties.
Executive Leadership Team
The Chair of the Company’s Board of
Directors appoints, on the proposal of
the President & CEO, the Members of
the Executive Leadership Team and
confirms their remuneration and other
contractual terms. The Company’s
President & CEO acts as the Chair of
the Executive Leadership Team. The
Executive Leadership Team han-
dles the Group’s and business areas’
strategy issues, capital expenditure,
financial development, product policy,
Group structure and control systems,
and supervises the Company’s oper-
ations.
The Members of the Executive
Leadership Team report to the Pres-
ident & CEO and assist him in imple-
menting the Company’s strategy,
operational planning and manage-
ment, and in reporting the develop-
Glaston Annual Review 2023 49
Glaston 2023
Sustainability
Governance
Financial Review
ment of business operations.
Until October 1, 2023, the composi-
tion of the Executive Leadership Team
was the following: President and CEO
Anders Dahlblom, CSO and Dep-
uty CEO Sasu Koivumäki, CFO Päivi
Lindqvist, SVP Glaston Heat Treatment
Technologies Miika Äppelqvist, SVP
Glaston Insulating Glass Technologies
Dietmar Walz, SVP Glaston Automo-
tive and Display Technologies Robert
Prange, SVP Services Artturi Mäki, SVP
People & Culture Hannele Anonen
(until June 30, 2023) and Riikka Lai-
tasalo (as of August 1, 2023), and Gen-
eral Counsel Kaisa Latva (as of April 1,
2023).
In order to accelerate the execu-
tion of the strategy for the period
2021−2025, Glaston announced in June
2023 the plan to reorganize the com-
pany’s structure. In the new structure
that came into effect on October 1,
2023, Glaston has two Business Areas
(BA): Architecture and Mobility, Display
& Solar. In connection to the organiza-
tional changes, the following appoint-
ments were made to the Executive
Leadership Team: Miika Äppelqvist
was appointed SVP Architecture,
Robert Prange was appointed SVP
Automation & SCM, and José Yepes
was appointed SVP Mobility, Display
& Solar. Dietmar Walz, SVP Insulating
Glass Technologies, left the Group to
seek new opportunities outside Glas-
ton on October 1, 2023.
As of October 1, 2023, Glaston’s
Executive Leadership Team has
included Anders Dahlblom, President
& CEO (until November 15, 2023), Antti
Kaunonen Interim CEO (as of Novem-
ber 15, 2023); Sasu Koivumäki, Chief
Sales Officer and Deputy CEO; Miika
Äppelqvist, SVP Architecture; José
Yepes, SVP Mobility, Display & Solar;
Robert Prange, SVP Automation &
SCM; Artturi Mäki, SVP Services; Päivi
Lindqvist, Chief Financial Officer; Kaisa
Latva, General Counsel, and Riikka
Laitasalo, SVP People and Culture.
The Executive Leadership Team
convened 11 times in 2023.
Glaston Annual Review 2023 50
Glaston 2023
Sustainability
Governance
Financial Review
Executive Leadership Team December 31, 2023
Area of responsibility Member since Year of birth Education
Share ownership
on 31.12.2023 *
)
Antti Kaunonen CEO Member of the Board of Directors since
2018. Interim CEO and Member of the
Executive Leadership Team as of 15
November 2023
1959 D.SC.(Tech), MBA 162,686 shares
Other members of the Executive Leadership Team
Sasu Koivumäki CSO
Deputy CEO since 2015
Employed by the Company since 2002,
Member of the Executive Leadership Team
since 2012
1974 M.Sc.(Econ.) 94,735 shares
Riikka Laitasalo SVP People & Culture Employed by the company and Member
of the Executive Leadership Team since
August 2023
1979 M.Sc. (Econ.) No shares
Kaisa Latva General Counsel Employed by the company and Member of
the Executive Leadership Team since April
2023
1987 LL.M. No shares
Päivi Lindqvist Chief Financial Officer Employed by the company and Member of
the Executive Leadership Team since 2016
1970 M.Sc.(Econ), MBA 42,217 shares
Artturi Mäki SVP Services Employed by the company and Member of
the Executive Leadership Team since 2016
1969 M.Sc.(Eng.) 8,390 shares
Robert Prange SVP Automation & SCM Employed by the company since 2019.
Member of the Executive Leadership Team
since 2020
1970 Dr. Ing. 46,099 shares
José Yepes SVP Mobility, Display & Solar Employed by the company since 2019.
Member of the Executive Leadership Team
since October 2023
1976 Mechanical Engineer and
MAS in Business Engineering
Management
No shares
Miika Äppelqvist SVP Architecture Employed by the company since 2013.
Member of the Executive Leadership Team
since 2020
1981 M.Sc. Industrial engineering
and management
8,027 shares
*)
Share ownership includes also the ownership of Glaston Corporation shares by the entities controlled by the person in question.
Glaston Annual Review 2023 51
Glaston 2023
Sustainability
Governance
Financial Review
Remuneration of the CEO & President
and the Executive Leadership Team is
described in the Remuneration Report
2023 and on the company’s website.
At the end of 2023, the extended
leadership team, Leadership Forum,
comprised, in addition to the
above-mentioned members of the
Executive Leadership Team, of Kimmo
Kuusela (VP Strategic Accounts &
Innovation, Architectural Business),
Riku Färm (BL Architecture, Temper-
ing & Laminating), Taavi Kovero (BL
MDS Heat Treatment), Marcus Schrod
(VP Operations, Neuhausen), Pekka
Nieminen (General Manager and VP,
Sales and Operations, China), Marco
Stehr (SVP Sales and service, EMEA),
Pia Posio (VP Marketing, Communica-
tions and IR), Jens Mayr (SVP Insulating
Glass Business Line), Joe Butler (SVP
Sales & Service, Americas), Janne
Puhakka (VP, ICT & Digitalization),
Magnus Sjöblom (Business Control &
Strategy) and Alexander Klotz (Global
Sourcing & SCM). The Leadership
Forum met three times in 2023.
Main Features of Internal Control and
Risk Management Pertaining to the
Financial Reporting Process
Internal control is an essential part of
the Company’s administration and
management. Its aim is to ensure that
the Group’s operations are efficient,
productive and reliable and that
legislation and other regulations are
complied with. The Group has spec-
ified Group-wide principles for the
main areas of its operations that form
the basis for internal control.
The Group’s internal control sys-
tems serve to provide reasonable
assurance that the financial reports
published by the Group give reason-
ably correct information about the
Group's financial position. The Board
of Directors and the President & CEO
are responsible for arranging internal
control. A report covering the Group's
financial situation is supplied monthly
to the Board of Directors. The Group's
internal control is decentralized to dif-
ferent Group functions, which super-
vise compliance with instructions
approved by the Board of Directors
within their areas of responsibility. The
Group’s financial management and
operational control are supported and
coordinated by the Group Finance
and controller network.
The Group’s financial reporting
process complies with the Group’s
operating guidelines and standards
relating to financial reporting. The
interpretation and application of
financial reporting standards has been
concentrated in the Group Finance
organization, which maintains operat-
ing guidelines and standards relating
to financial reporting and is responsible
for internal communication relating to
them. The Group Finance organization
also supervises compliance with these
guidelines and standards.
The Group’s Finance organization
regularly monitors the reporting of the
Group’s units and addresses devia-
tions perceived in reporting and, if
necessary, performs either its own
separate internal control auditing
or commissions the internal con-
trol 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 Finance's organization. The
principles are applied consistently
throughout the Group and a consist-
ent Group reporting system is in place.
In 2023, the Audit Committee
selected an outsourced internal audit
service provider after a tendering
process. The Audit Committee has
approved an internal audit charter and
internal audit plan for 2024.
Risk Management
Risk management is an essential part of
Glaston's management and control sys-
tem. The purpose of risk management
is to ensure the identification, manage-
ment and monitoring of risks relating to
business targets and operations. Risk
management principles and operating
practices have been specified in a risk
management policy approved by the
Company’s Board of Directors.
The principle guiding Glaston's risk
management is the continuous, sys-
tematic and appropriate development
and implementation of the risk man-
agement process, with the objective
being the comprehensive recogni-
tion and appropriate management
of risks. Glaston’s risk management
focuses on the risks relating to busi-
ness opportunities and on risks that
threaten the achievement of Group
objectives in a changing operating
environment. From the perspective of
risk management, the Company has
divided risks into four different groups:
strategic risks, operational risks,
financial risks and hazard risks. Risks
relating to property, business inter-
ruption as well as liability arising from
the Group’s operations have been
covered by appropriate insurances.
Management of financial risks is the
responsibility of the Group Treasury in
the Group’s parent company.
Glaston's risk management policy
includes guidelines relating to the
Group's risk management. Risk man-
Glaston Annual Review 2023 52
Glaston 2023
Sustainability
Governance
Financial Review
agement policy also specifies the risk
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
are able to determine the level of risk
that the Company’s business func-
tions are potentially ready to accept in
each situation or at a certain time.
It is the duty of Glaston’s Board of
Directors to supervise the implementa-
tion of risk management and to assess
the adequacy and appropriateness of
the risk management process and of
risk management activities. In practice,
risk management consists of appro-
priately specified tasks, operating
practices and tools, which have been
adapted to Glaston’s business functions
and Group-level management systems.
Risk management is the responsibility
of the SVP of each segment and the
head of Group-level function. Risk rec-
ognition is in practice the responsibility
of every Glaston employee.
The Group Legal function is respon-
sible for guidelines, support, control
and monitoring of risk management
measures. In addition, the function
consolidates segment and Group-
level risks. The Group Legal function
reports on risk management issues to
the President & CEO and the Execu-
tive Leadership Team and assesses in
collaboration with them any changes
in the probabilities or the impacts
of identified risks and in the level of
their management. The Group Legal
function also reports the results of risk
management processes to the Board
of Directors.
Segment and Group-level risk
management is included in the annual
Group-wide risk management pro-
cess. The process can also always be
initiated when required if substantial
strategic changes requiring the initia-
tion of the risk management process
take place in a certain segment.
The management group of each
segment and function identifies and
assesses its operational risks and
specifies risk management measures
by which an acceptable level of risk
can be achieved.
Utilizing the risk management pro-
cess, risks are systematically identified
and assessed in each segment and at
Group level. In addition, at each level
actions are specified to achieve an
acceptable risk level. Risks are consol-
idated at Group level. Action plans are
prepared at each level of operations
to ensure risks remain at an accept-
able level.
The Group's risks are covered in
more detail in the Report of the Board
of Directors on page X. The manage-
ment and organization of the Group’s
financial risks are presented in more
detail in Note 5.4 of the consolidated
financial statements on page XX.
Information and Communications
An effective internal control system
requires sufficient, timely and reliable
information to enable management
to assess the achievement of the
company’s goals. There is a need for
both financial and other information
on the Company’s internal and exter-
nal events and activities. Employees
have the opportunity to report, also
through a whistleblowing channel, any
questionable activity they observe. All
external communications are han-
dled in accordance with the Group’s
Disclosure policy.
Auditing
The Company has one Auditor, which
must be an auditing firm authorized
by the Finnish Patent and Regis-
tration Office. The Annual General
Meeting elects the Auditor to audit
the accounts for the financial year,
and the Auditor’s duties cease at
the close of the subsequent Annual
General Meeting. It is the Auditor’s
duty to audit the consolidated and
parent company financial statements
and accounting as well as the par-
ent company’s governance, and to
give reasonable assurance that the
financial statements as a whole are
free from material misstatement. The
Company’s Auditor presents the audit
report required by law to the Compa-
ny’s shareholders in connection with
the annual financial statements and
reports regularly to the Board of Direc-
tors. The Auditor, in addition to fulfilling
general competency requirements,
must also comply with certain legal
independence requirements guaran-
teeing the execution of an independ-
ent and reliable audit.
Audit 2023
At the 2023 Annual General Meeting,
the accounting firm KPMG Oy Ab was
re-elected as the Company’s Auditor.
The auditor with principal responsi-
bility was Lotta Nurminen APA. Audit-
ing units representing KPMG have
served as the auditors of the Com-
pany's subsidiaries in most operating
Glaston Annual Review 2023 53
Glaston 2023
Sustainability
Governance
Financial Review
countries. In 2023, the Group's auditing
costs totaled approximately EUR 404
thousand, of which KPMG received
approximately EUR 327 thousand. In
addition, auditing units belonging to
KPMG have provided legal statements
to a total value of EUR 10 thousand and
other advice to Group companies to a
total value of EUR 49 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 considered 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 reg-
ularly monitored in Glaston’s finance
function. 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 controls. Results of the
monitoring of related party transac-
tions are reported regularly to the Audit
Committee of the Board of Directors.
Glaston reports on related party
transactions regularly in its financial
statements. Related party transac-
tions which are material to sharehold-
ers, and which deviate from normal
business or are not made according to
ordinary commercial terms and con-
ditions are published in accordance
with the Securities Market Act and the
rules of Nasdaq Helsinki Ltd.
Insider Administration
In addition to the statutory insider
regulations, Glaston complies with the
insider guidelines of Nasdaq Helsinki
Ltd as well as the internal guidelines
adopted by Glaston at any given time.
In accordance with the EU’s Market
Abuse Regulation, Glaston prepares
and maintains a list of persons dis-
charging managerial responsibilities
as well as persons and entities closely
associated with them. In Glaston
Corporation, the persons discharging
managerial responsibilities are the
Members of the Board of Directors,
the President & CEO, the Deputy CEO,
and the Chief Financial Officer. At
least once a year, Glaston checks the
information of persons discharging
managerial responsibilities that have
a duty to declare as well as persons
and entities closely associated with
them. Glaston reports the securities
transactions of persons discharging
managerial responsibilities and their
related parties in accordance with the
Market Abuse Regulation.
Glaston does not maintain an
insider list relating to permanent
insiders. During the preparation of
significant projects and events, the
Company maintains project- and
event-specific lists of insiders. Insiders
are given a written statement of their
inclusion in an insider register as well
as guidelines on insider obligations.
The Company’s persons dis-
charging managerial responsibilities,
persons serving in certain key posi-
tions 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 publication of interim
reports and financial statement
releases. With respect to project-
specific insiders, trading in the Com-
pany’s financial instruments is prohib-
ited until the cancellation or publica-
tion of the project.
The Company’s insider admin-
istration, its implementation and
supervision are the responsibility of
Group Legal function and the Com-
munications Department. Glaston’s
General Counsel is responsible for
the Company’s insider issues. The
Company’s Communications Depart-
ment is responsible for maintaining
the list of insiders and for overseeing
the restriction on trading and duty to
declare.
Glaston Annual Review 2023 54
Glaston 2023
Sustainability
Governance
Financial Review
Remuneration Report for Governing Bodies 2023
Introduction
This Remuneration Report for the
financial year 2023 (the “Remuner-
ation Report”) describes the remu-
neration for Governing Bodies of
Glaston Corporation (“Glaston” or the
“Company”) as required by the Finnish
Securities Market Act (746/2012, as
amended), the Finnish Companies
Act (624/2006, as amended) and the
Finnish Corporate Governance Code
2020 (the “CG Code”) issued by the
Securities Markets Association. In
addition to aforementioned, Glaston
complies with other legal provisions
concerning listed companies, Glas-
ton’s Articles of Association and the
rules and guidelines issued by Nasdaq
Helsinki Ltd.
The Remuneration Report presents
information on the remuneration of
the Board of Directors, the President
and CEO and the Deputy CEO for
the financial year 2023 and has been
approved by the Board of Directors
(also the “Board”) of Glaston.
The principles, decision-making
processes, and practices for the
remuneration of the Board of Direc-
tors, the President and CEO and
the Deputy CEO are set forth in the
Remuneration Policy of Glaston (the
“Remuneration Policy”). The Remu-
neration Policy and further informa-
tion about remuneration is available
at Glaston website: www.glaston.net/
investors.
The remuneration principles in
Glaston are designed to attract and
retain the Company’s management
persons who possess relevant skills,
industry knowledge and experience
to oversee the Company’s achieve-
ment of its performance and strategy
goals with emphasis on long-term
shareholder value creation. The struc-
ture of the total remuneration is to be
aligned with the long-term value of
Glaston, the business strategy, finan-
cial results as well as 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-
rary deviations from the policy have
taken place during the financial year
2023. Further, no clawbacks of the
remuneration have taken place during
the said financial year 2023.
Development of remuneration in
relation to the 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 2019−2023.
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 incen-
tives. Criteria of such incentive plans
are linked to the Company’s perfor-
mance (pay-for-performance) and
thus incentive plans of Glaston ensure
that the remuneration drives the best
interest of the Company.
With respect to the remuneration
development for the financial years
2019−2023, the following shall be
noted.
Glaston is a global company and
the remuneration levels vary signifi-
cantly in markets where Glaston oper-
ates. Nevertheless, it is considered
most transparent to compare the
remuneration of the governing bodies
with the remuneration of employees
globally on group level. Thus, the fig-
ures on average employee remuner-
ation below are based on data for all
Glaston employees globally. Further,
Glaston acquired Bystronic glass in
2019. Bystronic glass was consolidated
to Glaston as of 1 April 2019 and as a
result of such transaction, the total
number of Glaston’s employees grew
by 121% and totaled 790 on 31 Decem-
ber 2019 (31 December 2018: 357)
while net sales in January–December
2019 totaled EUR 181.0 million (2018:
EUR 101.1 million).
Further, as reported in the remu-
neration report for the financial year
2020, due to the COVID-19 pandemic,
Glaston took several proactive actions
in 2020. Actions affecting employee
remuneration included temporar-
ily reducing labour costs by initiat-
ing temporary layoffs and reducing
working hours. The fixed salaries of
Glaston Annual Review 2023 55
Glaston 2023
Sustainability
Governance
Financial Review
the executive management group, of
which the President and CEO and the
Deputy CEO are members, were tem-
porarily cut by 10% during Q2/2020.
Some of these labor cost reduction
actions continued to have an effect
also in 2021 but were canceled in
early 2021 as a result of the improved
market situation. In 2021, these actions
did not concern the President and
CEO and the Deputy CEO. No actions
affecting the remuneration were
taken after 2021 due to the pandemic.
Due to the nature of the Board's
duties and responsibilities, the remu-
neration of the Board includes fixed
remuneration only. The effect of the
Bystronic glass transaction on Glas-
ton and its operations has also been
reflected in the remuneration level of
the Board of Directors.
EUR 2019 2020 2021 2022 2023
Annual remuneration of
the Board 283,550 331,300 353,700 345,900 365,700
Annual remuneration of
the President and CEO 467,466 163,598
1
330,622
2
644,244 472,977
3
Annual remuneration of
the Deputy CEO
4
305,777 108,645
5
337,574 378,192 367,872
6
Annual remuneration
of the Acting President
and CEO - 254,558
7
- - 43,772
8
Average salary
development
9
61,500 60,400 66,500 70,500 72,000
Remuneration development
1
Remuneration for Arto Metsänen from the period 1 January to 31 May 2020. (Former President and
CEO since June 1, 2020.)
2
Remuneration for Anders Dahlblom.
3
Remuneration for Anders Dahlblom until 15 November 2023.
4
Deputy CEO’s (Sasu Koivumäki) remuneration presented here for 2019-2023 is excluding reim-
bursement of costs and expenses paid directly to third parties based on the expatriate agree-
ment.
5
Remuneration from the period 1 January to 31 May 2020 to Sasu Koivumäki, who was appointed as
an Acting President and CEO for the rest of the year 2020.
6
In FY2023, the reimbursement of costs and expenses paid directly to third parties amounting to in
total EUR 148,780. Total remuneration including also third party fees thus amounting to EUR 516,652.
7
Remuneration from period 1 June to 31 December 2020. Excluding reimbursement of costs and
expenses paid directly to third parties based on the expatriate agreement.
8
Remuneration from period 15 November to 31 December 2023 to Interim CEO Antti Kaunonen.
9
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.
10
Bystronic glass consolidated as of April 1, 2019.
EUR 1000 2019
10
2020 2021 2022 2023
Net sales 181,018 170,067 182,662 213,520 219,708
Comparable operating
result (EBIT) 5,941 3,225 6,569 9,917 11,418
Comparable EBITA 9,746 7,742 11,098 13,624 14,869
Key financial metrics
Glaston Annual Review 2023 56
Glaston 2023
Sustainability
Governance
Financial Review
The relation between remuneration development and the Company’s perfor-
mance has been further illustrated in the chart below:
Remuneration of the Board of Directors
The 2023 Annual General Meeting
resolved that an annual fee of EUR
70,000 shall be paid to the Chair of the
Board, EUR 43,000 to the Deputy Chair
and EUR 33,000 to other Members of
the Board.
Further, the 2023 Annual General
Meeting resolved that a member of
the Board may choose to receive the
annual fixed remuneration partly in
company shares and partly in cash so
that approximately 40% of the annual
fixed remuneration is paid in Glaston
Corporation’s shares. The number of
shares forming the above remunera-
tion portion, which would be payable
in shares, will be determined based on
the share value in the stock exchange
trading maintained by Nasdaq Helsinki
Ltd, calculated as the trade volume
weighted average quotation of the
share during the one-month period
immediately following the date on
which the interim report of Janu-
ary-March 2023 of the Company is
published.
A meeting fee of EUR 800 shall be
paid to the Chair for meetings in the
Chair’s home country and EUR 1,500
for meetings held 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 meetings held elsewhere.
Half of the normal fee shall be paid for
a board meeting held per capsulam.
In addition, it was decided that Board
members shall be paid travel and
accommodation expenses and other
direct expenses arising from board
work pursuant to the Company's nor-
mal practice.
Furthermore, the members of the
Audit and People and Remuneration
Committees shall be paid a meet-
ing fee of EUR 500 for each meeting
that the members have attended. In
addition to the meeting fee, the Chair
of the Audit Committee shall be paid
an annual fee of EUR 10,000 and the
Chair of the People and Remuneration
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
2023 were in compliance with the
Remuneration Policy.
In the financial year 2023, the fol-
lowing fees were paid to the mem-
bers of the Board: an annual fee and
meeting fees including both Board
and committee related remuneration.
As set out below, four members of
the Board chose to receive the annual
fixed remuneration partly in company
shares.
*Deputy CEO remuneration for 2019 includes also remuneration paid to Sasu Koivumäki as Acting
CEO and President.
** CEO remuneration for 2023 includes also the remuneration paid to Interim CEO Antti Kaunonen.
Board remuneration
CEO remuneration**
Deputy CEO remuneration*
Employee remuneration
EBIT
EBITA
Remuneration and financial development
15,000
TEUR
0
1,000
800
600
400
200
5,000
10,000
2019 2020 2021 20232022
Glaston Annual Review 2023 57
Glaston 2023
Sustainability
Governance
Financial Review
Board Audit Committee
People and Remuneration
Committee Annual fee (EUR) Meeting fees (EUR)
Remuneration in total
(EUR)
Veli-Matti Reinikkala,
Chair of the Board
Chair 77,500 16,700 94,200
Sebastian Bondestam,
Deputy Chair of the Board
Member 43,000
Of which EUR 17,200 paid
in Glaston shares
8,500 51,500
Antti Kaunonen Member
11)
33,000
Of which EUR 13,200 paid
in Glaston shares
8,000 41,000
Sarlotta Narjus Member 33,000 9,000 42,000
Arja Talma Chair 43,000
Of which EUR 13,200 paid
in Glaston shares
9,000 52,000
Tero Telaranta Member 33,000
Of which EUR 13,200 paid
in Glaston shares
9,000 42,000
Michael Willome Member 33,000 10,000 43,000
Total 295,500 70,200 365,700
11
Until 15 November 2023
Glaston Annual Review 2023 58
Glaston 2023
Sustainability
Governance
Financial Review
Remuneration of the President
and CEO, the Deputy CEO and the
Interim CEO
The remuneration of the President
and CEO, the Deputy CEO and Interim
CEO comprises of a base salary, ben-
efits and performance-based incen-
tive plans.
Anders Dahlblom served as the
President and CEO until 15 November
2023, after which Antti Kaunonen has
served as the Interim CEO in addition
to his role as a member of the Board
of Directors. Anders Dahlblom contin-
ued to support the Interim CEO for a
transition period during the financial
year 2023. Chief Sales Officer Sasu
Koivumäki served as the Deputy CEO
during the financial year 2023.
In 2023, the President and CEO
Anders Dahlblom was paid the total
remuneration of EUR 472,977. The rel-
ative proportion of the fixed pay was
63% and variable pay 37% (supple-
Actualised remuneration of the President & CEO, and Deputy CEO for 2023
CEO & President Anders Dahlblom Deputy CEO Sasu Koivumäki
Performance Actualisation 2023 (STI and LTI)
President and CEO and Deputy CEO participated in the short-term incentive
plan in 2023.
The short-term incentive (STI) opportunity of the President and CEO was in
2023 tied to the following metrics:
KPI Weight Achievement
Glaston EBITA 70% Above min, below target
Glaston Order Intake 30% Above min, below target
mentary pension not included). The
different components are described
in more detail below.
In 2023, Deputy CEO Sasu
Koivumäki was paid total remuneration
of EUR 367,872. The relative proportion
of the fixed pay was 77% and variable
pay 23% (supplementary pension not
included). The different components
are described in more detail below.
Further, total remuneration paid
to Sasu Koivumäki in 2023 is exclud-
ing reimbursement of costs and
expenses in the amount of EUR
148,780 paid directly to third parties
based on the expatriate agreement.
Koivumäki has worked as an expatri-
ate in Singapore as of November 2021.
In 2023, Interim CEO Antti Kau-
nonen was paid the total remuner-
ation of EUR 43,772, which did not
include any variable pay.
Base salary ...........................................56%
Benefits .....................................................2%
Variable pay (STI+LTI) .....................34%
Supplementary pension .................8%
Base salary ...........................................52%
Benefits ..................................................27%
Variable pay (STI+LTI) ......................15%
Supplementary pension .................6%
Glaston Annual Review 2023 59
Glaston 2023
Sustainability
Governance
Financial Review
KPI Weight
Group Cumulative Comparable EBITA after LTI and STI 80%
Service Net Sales 20%
Total 100%
For the second performance period under the Performance Share Plan
2022‒2026 (LTI 2023‒2025), objectives were set regarding the Group as follows:
KPI Weight
Group Cumulative Comparable EBITA after LTI and STI 30%
Service Net Sales 30%
EPS 40%
Total 100%
The short-term incentive (STI) opportunity of the Deputy CEO was in 2023 tied to
the following metrics:
KPI Weight Achievement
Glaston EBITA 40% Above min, below target
Glaston Order Intake 50% Above min, below target
South East Asia (SEA) Order
Intake
10% Above min, below target
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 retain the key personnel and to
offer them with a competitive reward plan based on the earning and accumulat-
ing the Company’s shares.
President and CEO and the Deputy CEO participate in the Performance Share
Plan 2022‒2026 which comprise of three (3) performance periods: calendar
years 2022‒2024, calendar years 2023–2025 and calendar years 2024–2026. The
participants shall hold 50% of the net number of shares received under the plan
until the number of the Company’s shares held by the participant corresponds
to the value of the participant’s gross annual base salary. Such number of shares
shall be held during the term of the employment or service of the participant.
As a rule, no reward will be paid in case the employment or service terminates
before the reward payment is made.
For the first performance period under the Performance Share Plan
2022‒2026 (LTI 2022‒2024), objectives were set regarding the Group as follows:
Glaston Annual Review 2023 60
Glaston 2023
Sustainability
Governance
Financial Review
KPI Weight
Group Cumulative Comparable EBITA 80%
Average Net Gearing 20%
Total 100%
KPI Weight
Group Cumulative Comparable EBITA 80%
Service Net Sales 20%
Total 100%
The maximum opportunity for the two first performance periods was 40,000
shares for the Deputy CEO. The achievement (%) for the performance period
LTI 2019‒2021 was approximately 9.7% and for the performance period LTI
2020‒2022 approximately 14%.
For the third performance period under the plan (LTI2021‒2023) objectives
were set regarding Group as follows:
The maximum opportunity for the third performance period was 128,000 shares
for the President and CEO, and 56,000 shares for the Deputy CEO. The achieve-
ment (%) for the performance period LTI 2021‒2023 was 39.7%. Anders Dahlblom
stepped down from his role as the President and CEO and will therefore not be
entitled to the payout from LTI 2021-2023 plan.
Additionally, the President and CEO and the Deputy CEO participate(d) in the
Performance Share Plan 2019‒2023 which comprised of three (3) performance
periods: calendar years 2019‒2021, calendar years 2020–2022 and calendar
years 2021–2023. However, as the President and CEO Anders Dahlblom joined the
Company first in 2021, he did not participate in the two first performance peri-
ods of the said plan. The participants shall hold 50% of the net number of shares
received under the plan until the number of the Company’s shares held by the
participant corresponds to the value of his gross annual base salary. Such num-
ber of shares shall be held during the term of the employment or service of the
participant. As a rule, no reward will be paid in case the employment or service
terminates before the reward payment is made.
For the two first performance periods under the Performance Share Plan
2019‒2023 (LTI 2019‒2021 and LTI 2020‒2022) objectives were set regarding
Group Cumulative Comparable EBITA and Average Net Gearing as follows:
Glaston Annual Review 2023 61
Glaston 2023
Sustainability
Governance
Financial Review
Element Remuneration Description
President and CEO Deputy CEO Interim CEO (as of 15 November 2023)
FIXED
Base salary and benefits
EUR 297,369
Including taxable fringe benefits: mobile
phone, company car, lunch benefit
EUR 283,026
Excluding utilities and fees paid directly to third parties amounting
to in total of EUR 148,780
(EUR 516 652 such fees included)
EUR 43,772
Including taxable fringe benefits: mobile
phone
VARIABLE
Short-term incentive
(STI)
Performance year 2022 (paid in 2023):
EUR 175,608
Performance year 2023 (paid in 2024):
EUR 81, 840
12
The maximum amount of the President &
CEO’s annual bonus: 80% of the annual salary.
Performance year 2022 (paid in 2023): EUR 79,447
Performance year 2023 (paid in 2024): EUR 34,011
The maximum amount of the Deputy CEO’s annual bonus:
40% of the annual salary.
Performance year 2023 (paid in 2024): N/A
For 2024, the Interim CEO shall be entitled
to pro rata STI for each full quarter the
Interim CEO serves in the position in line
with the principles of the President & CEO.
VARIABLE
Long-term incentive (LTI)
2019-2023
For additional information
on long-term incentive
plans, please see
Glaston’s website.
Finalized plans: N/A. President and CEO
joined the Company on 1 January 2021 and
thus did not participate in LTI 2019‒2021 or
2020‒2022.
The maximum reward for the
LTI 2021‒2023 is 128,000 shares, including
also the portion to be paid in cash.
13
Finalized plans:
LTI 2019‒2021 (paid in 2022): EUR 4,484 (The maximum reward was
40,000 shares, including also the portion to be paid in cash).
LTI 2020-2022 (paid in 2023): EUR 5,399 (The maximum reward was
40,000 shares, including also the portion to be paid in cash).
LTI 2021‒2023 (payable in 2024): 22,232 shares (The maximum
reward was 56,000 shares, including also the portion to be paid in
cash). Monetary value will be determined at the time of the payout.
-
VARIABLE
Long-term incentive (LTI)
2022-2026
For additional information
on long-term incentive
plans, please see
Glaston’s website.
Finalized plans: N/A
Ongoing plans: N/A
Finalized plans: N/A
Ongoing plans:
The maximum reward for the ongoing LTI 2022‒2024 is 56,000
shares, including also the portion to be paid in cash.
The maximum reward for the ongoing LTI 2023‒2025 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 fixed earnings amounting to EUR
39,962 in 2023.
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
fixed earnings amounting to EUR 31,579 in 2023.
The Deputy CEO may retire in accordance with the stipulations of
the applicable law.
-
Summary of remuneration to the President and CEO and Deputy CEO
12
Calculated pro rata until 15 November 2023
13
There will be no payout for LTI 2021-2023 plan for Anders Dahlblom due to his resignation
Glaston Annual Review 2023 62
Glaston 2023
Sustainability
Governance
Financial Review
FINANCIAL
REVIEW
The Board of Directors’ Review 2023 .......................................64
Per Share Data ....................................................................................... 93
Financial Ratios ...................................................................................... 94
Definitions of key ratios ....................................................................96
Consolidated Financial Statements .........................................98
Consolidated Statement of Profit or Loss ............................99
Consolidated Statement of
Comprehensive Income ...............................................................100
Consolidated Statement of Financial Position ................. 101
Consolidated Statement of Changes in Equity .............. 102
Consolidated Statement of Cash Flows ............................. 104
Supplemental Information for Statement
of Cash Flows ....................................................................................... 105
Notes to the consolidated financial statements ............ 106
Parent Company Financial Statements .............................. 179
Income Statement of the Parent
Company (FAS) .................................................................................. 179
Balance Sheet of the Parent Company (FAS) ................180
Parent Company Cash Flow Statement (FAS) ................ 181
Notes to Parent Company Financial
Statements (FAS) .............................................................................. 182
Auditor’s Report .................................................................................. 192
This report is non-official translation of the Finnish original
Glaston 2023
Sustainability
Governance
Financial Review
The Board of Directors’ Review 2023
Financial year 2023 in brief
Despite market uncertainty and
increasing geopolitical tensions, 2023
was a year of steady progress for
Glaston. During the year the glass
processing equipment markets
developed unevenly: the Architectural
markets slowed down while in the
Mobility, Display & Solar segment, the
demand for automotive glass devel-
oped favorably, particularly in China.
The prevailing Architectural market
uncertainty combined with the high
inflationary environment and inter-
est rates increased cautiousness in
investment decisions among cus-
tomers and their customers. This was
reflected in the order intake, which
decreased by 13% compared to 2022.
Net sales were up 3% year-on-year
and totaled EUR 219.7 million. Prof-
itability improved, with comparable
EBITA margin amounting to 6.8%.
The strategy execution progressed.
The new organizational structure
aiming to accelerate the strategy exe-
cution and enhancing the customer
experience came into effect on Octo-
ber 1, 2023. Ramping up the capabili-
ties for the production of automotive
glass pre-processing machines in
Tianjin continued as planned, and the
demand for the lines manufactured
in Tianjin clearly supported the order
intake. Creating a local supply chain
for the production of automotive glass
lines has taken longer than initially
estimated. However, the transition to
local sourcing improved during the
year and the positive development is
expected to continue.
Due to the weakening market
sentiment, actions were launched in
September to adapt the organization
to the prevailing market environment.
Adjustment measures were taken in
Finland and Switzerland, and included,
among other actions, terminations of
employment contracts.
We continued our progress in
sustainability. Glaston set new sci-
ence-based short-term emission
reduction targets in line with the
Science Based Targets initiative (SBTi).
The efforts are in line with limiting
global warming to 1.5°C in accordance
with the Paris Agreement.
The company’s President & CEO
Anders Dahlblom resigned from the
company on November 15, 2023 due
to personal reasons and Board mem-
ber Antti Kaunonen has acted as the
interim CEO as of the same date.
Operating environment
Architectural glass
After a positive start to the year, the
Architectural glass market began to
decline due to the slowdown in the
residential and commercial glass
markets. As a result of the prevailing
market uncertainty combined with
the high interest rates, the investment
uncertainty among customers and
their customers increased.
Due to customers’ lower machinery
utilization and investment activity, the
markets for tempering and laminating
equipment slowed down. The capac-
ity-driven tempering line investments
were significantly reduced due to
overcapacity in the market for basic
tempered glass. Demand for laminat-
ing technologies was also subdued.
The importance of features such as
energy-efficiency and automation was
highlighted even further, which drove
demand for flat tempering and flat lam-
inating lines, however, at a lower level.
As of October 1, 2023, the
company has two reporting
segments: Architecture and
Mobility, Display & Solar. Services
business is included in the
reporting segments. The Archi-
tecture Business Area consists
of flat tempering and laminat-
ing technologies and insulating
glass technologies and related
services businesses. The Mobil-
ity, Display & Solar Business Area
consists of pre-processing and
heat treatment technologies
and related services businesses
for the mobility, display and solar
glass markets.
The Group’s Business Areas
(BA) Architecture and Mobility,
Display & Solar are the same as
the operating segments and the
reporting segments. On Novem-
ber 24, 2023, the company pub-
lished comparative information
according to the new structure.
Glaston Annual Review 2023 64
Glaston 2023
Sustainability
Governance
Financial Review
For Insulating Glass equipment,
many investments are capabili-
ty-driven and market activity con-
tinued at a reasonable level as cus-
tomers invested in new equipment
to meet the demand for more
energy-efficient glass solutions. The
Thermo Plastic Spacer (TPS®) tech-
nology continued to gain traction.
Services markets improved towards
the end of the year and the upgrades
market was more active compared to
the previous quarters. Also. demand
for field services increased.
Operating environment in the regions
In the EMEA region, a market slow-
down was noted as of the second
quarter and demand for Insulating
Glass and Heat Treatment equipment
weakened. As a result of economic
uncertainty due to higher interest
rates and limited investments, the
overall market sentiment weakened in
Europe. In addition, demand in Europe
was also affected by customers’ lower
machinery utilization. In the Services
markets, demand improved for both
upgrades as well as spare parts and
field service towards the end of the
year.
The Americas performed well
throughout the year. The commer-
cial markets continued to be strong
whereas the residential markets were
slower throughout the year, which
impacted the performance of all Archi-
tecture business lines. In the US, invest-
ments were driven by the new energy
regulations, and positive market
traction was noted for Insulating Glass
technologies, enabling better insula-
tion properties. For Services, demand
for upgrades was slow throughout the
year while demand for spare parts and
field services was strong, despite the
slow fourth quarter.
In China, the architectural glass
market was soft throughout the year
with low demand for tempering and
laminating lines. Despite the diffi-
cult market conditions, demand for
high-end Insulating Glass equipment
was good. In the Services markets,
demand was slow. Elsewhere in the
APAC region, the markets for new
machines were subdued. For Ser-
vices, demand for spare parts and
field services was good.
Mobility, Display and Solar glass
In 2023, the automotive industry con-
tinued its positive development with
global vehicle production growing by
7-8%. Nevertheless, production was
still clearly below pre-covid levels
resulting in a weak investment environ-
ment. Fuelled by positive market sen-
timent, investment in new equipment
increased, which was reflected in a
good order intake for automotive glass
machines. With the increasing share of
electric vehicles, shifts in production
between the major regions, especially
towards China, could be seen.
While the traditional display market
has not shown extraordinary activi-
ties, the automotive display market
again showed increased interest in
new designs and capacity extensions.
Display orders however remained at a
modest level.
In 2022, Glaston entered the
market of tempering technologies
for solar panel production in China.
The first deal was closed in Septem-
ber 2022 and a follow-up order was
received in September 2023. Due to
the customer’s readiness to receive
the machines, the installations were
postponed for several months. In the
final quarter of 2023, installations of
the first lines began at the customer’s
premises providing valuable insight for
coming projects.
The Services business remained
at a reasonable level showing growth
compared to the previous year. Good
demand for upgrade products was
noted and the trend is expected to
continue as customers want to extend
the lifetime of their machines as well
as increase their productivity.
The supply chain situation improved
during the year. Despite some short-
ages, supply availability was back to
pre-COVID-19 pandemic levels.
Operating environment in the regions
In Europe, production started to slowly
increase as the industry recovered
from the chip shortages and energy
price increases, but was way below
the pre-covid levels. As glass pro-
cessors were not yet operating at
full capacity, or only for a short time,
investments remained modest.
In North America, the market con-
tinued strong outside of the traditional
automotive market, i.e. for special
products such as recreational vehi-
cles (RVs) and heavy vehicles. The
cautious signs of market recovery in
South America continued, but the
increased activity was not reflected in
the order intake.
In China, strong expansion in the
vehicle market was noted with pro-
duction approximately 10% higher
than before the COVID-19-pandemic
and almost as big as North America
and Europe combined. The market
activity continued at a good level and
Glaston’s ability to serve the market
with locally manufactured products
supported the order intake.
Glaston Annual Review 2023 65
Glaston 2023
Sustainability
Governance
Financial Review
Orders received, EUR million 1–12/2023 1–12/2022 Change%
Architecture 165.8 211.2 -21.5%
Mobility, Display & Solar 53.5 40.9 30.7%
Total segments 219.2 252.1 -13.0%
Unallocated and eliminations 1.0 0.9 10.6%
Total Glaston Group 220.3 253.0 -12.9%
At the end of the final quarter, the order book stood at EUR 106.5 (138.3) million
and was 23% lower than in the corresponding period in 2022. Adjusting the com-
parison period for the canceled order, the order book declined by 10%. The order
book decreased by 30% in Architecture and increased by 70% in Mobility, Display
& Solar. The Architecture order book totaled EUR 89.6 (128.4) million, representing
84% of the Group’s order book while Mobility, Display & Solar order book totaled
EUR 16.9 (9.9) million or 16% of the Group total.
Order book, EUR million 31.12.2023 31.12.2022 Change%
Architecture
1)
89.6 128.4 -30.2%
Mobility, Display & Solar 16.9 9.9 70.1%
Total segments 106.5 138.3 -23.0%
Unallocated and eliminations - - -
Total Glaston Group 106.5 138.3 -23.0%
Financial development of the Group
Orders received and order book
Orders received in the financial year 2023 totaled EUR 220.3 (253.0) million,
down 13% compared to the corresponding period in the previous year due to
the weaker performance in the Architecture segment. The comparison period
included one major Architecture segment order of EUR 31 million of which EUR
19 million was canceled in June 2023. Order intake performance for Architec-
ture equipment was down 22% and totaled EUR 165.8 (211.2) million. Adjusting
for the canceled order, the decline was 14%. For the Mobility, Display & Solar
segment, the order intake saw an increase of 31%, and totaled EUR 53.5 (40.9)
million. The total Services business order intake was up 3% compared to the
corresponding period in 2022.
Net sales
In 2023, net sales totaled EUR 219.7 (213.5) million, up 3 % compared to the cor-
responding period in the previous year. The Architecture segment’s net sales
totaled EUR 175.1 (169.5) million, up 3%. The Mobility, Display & Solar segment’s net
sales were on the same level as in the previous year and totaled EUR 43.6 (43.1)
million. Also, Services net sales were on the same level as in the comparison
period.
Of total net sales, the Architecture segment accounted for 80% and the Mobil-
ity, Display & Solar segment for 20%. Geographically, the EMEA region accounted
for 52%, the Americas for 33% and Asia and the Pacific (APAC) for around 15% of
the company’s net sales.
Net sales, EUR million 1-12/2023 1-12/2022 Change%
Architecture 175.1 169.5 3.3%
Mobility, Display & Solar 43.6 43.1 1.1%
Total segments 218.7 212.6 2.9%
Unallocated and eliminations 1.0 0.9 8.0%
Total Glaston Group 219.7 213.5 2.9%
Operating result and profitability
The financial year 2023 comparable EBITA amounted to EUR 14.9 (13.6) million, i.e.
6.8 (6.4)% of net sales. In the full year, EBITA improved clearly in the Architecture
segment and declined in Mobility, Display & Solar. The comparable operating
result was EUR 11.4 (9.9) million, i.e. 5.2 (4.6)% of net sales. The Group’s operating
result was EUR 8.1 (7.6) million. Items affecting comparability totaled EUR -3.3
(-2.3) million and were mainly related to the transfer of the production of Auto-
motive pre-processing products to China and other restructuring costs. Finan-
cial income and expenses amounted to EUR -0.8 (-2.5) million. The result before
taxes was EUR 6.9 (4.7) million. The result for the financial year was EUR 5.0 (3.1)
million. Earnings per share were EUR 0.060 (0.037) and comparable earnings per
share were EUR 0.104 (0.074).
1)
The order backlog for Insulating Glass Technologies was adjusted in 2023 for the partial
cancellation of one order with one customer, totaling EUR 19.4 million.
Glaston Annual Review 2023 66
Glaston 2023
Sustainability
Governance
Financial Review
EUR million 1–12/2023 1–12/2022 Change%
Operating result 8.1 7.6 6.6%
Items affecting comparability
(1
3.3 2.3 43.8%
Comparable EBIT 11.4 9.9 15.1%
Operating result 8.1 7.6 6.6%
Amortization and purchase price allocation 3.5 3.7 -6.9%
EBITA 11.6 11.3 2.2%
Items affecting comparability
(1
3.3 2.3 43.8%
Comparable EBITA 14.9 13.6 9.1%
% of net sales 6.8% 6.4%
(1
+ cost, - income
Financial development of the reporting segments
Architecture reporting segment in brief
• Due to the prevailing market uncertainty and high interest rates, the
markets slowed down
• Orders received were down 22% with Tempering and Laminating
Technologies more heavily affected
• Net sales were up 3%, with Tempering and Laminating Technologies and
Insulating Glass Technologies contributing to the outcome
• Profit improved due to higher volume and margin improvement
Architecture segment key figures, EUR million 1122023 1–12/2022 Change%
Orders received 165.8 211.2 -21.5%
of which service operations 55.0 56.2 -2.0%
of which service operations, % 33.2% 26.6%
Order book at end of period 89.6
1)
128.4 -30.2%
Net sales 175.1 169.5 3.3%
of which service operations 56.8 57.5 -1.1%
of which service operations, % 32.4% 33.9%
Comparable EBITA 15.1 11.9 26.4%
Comparable EBITA, % 8.6% 7.0%
Operating result (EBIT) 10.4 7.2 43.3%
Operating result (EBIT), % 5.9% 4.3%
Mobility, Display & Solar reporting segment in brief
• Improving market activity, North America and China the most active markets
• Order intake up 31% with good demand for Automotive heat treatment lines
and pre-processing lines manufactured in China
• Net sales on the same level as in the previous year
• Profitability development unsatisfactory, corrective measures ongoing
Mobility, Display & Solar segment key figures,
EUR million 1-12/2023 1-12/2022 Change%
Orders received 53.5 40.9 30.7%
of which service operations 19.3 16.3 18.4%
of which service operations, % 36.2% 39.9%
Order book at end of period 16.9 9.9 70.1%
Net sales 43.6 43.1 1.1%
of which service operations 19.2 18.9 1.3%
of which service operations, % 44.0% 43.9%
Comparable EBITA -0.5 1.5 -130.0%
Comparable EBITA, % -1.1% 3.6%
Operating result (EBIT) -2.5 0.3 -1,056.9%
Operating result (EBIT), % -5.7% 0.6%
1)
The order backlog for Insulating Glass technologies was adjusted in 2023 for the partial
cancellation of one order, totaling EUR 19.4 million..
Glaston Annual Review 2023 67
Glaston 2023
Sustainability
Governance
Financial Review
Financial position, cash flow and
financing
At the end of December, Glaston
Group’s balance sheet total was EUR
196.5 (194.9) million. Intangible assets
amounted to EUR 77.1 (76.1) million, of
which goodwill was EUR 58.2 (58.7)
million. At the end of the period, prop-
erty, plant, and equipment amounted
to EUR 23.2 (22.6) million and invento-
ries to EUR 35.8 (32.0) million.
The comparable return on capital
employed (ROCE) was 12.7 (10.5)%.
At the end of December, the com-
pany’s net gearing was 15.8 (19.5)%.
The equity ratio was 45.2 (44.0)%. Net
interest-bearing debt totaled EUR 10.9
(13.3) million.
In January−December 2023, Glas-
ton’s cash flow from operating activ-
ities was EUR 13.8 (10.2) million. Net
cash flow from investing activities was
EUR -7.3 (-5.5) million and cash flow
from financing activities was EUR -7.6
(-11.2) million.
Capital expenditure and product
development
Glaston Group’s January–December
2023 gross capital expenditure totaled
EUR 7.5 (5.8) million and was primar-
ily related to product development.
Depreciation and amortization of
property, plant, and equipment, and
of intangible assets, totaled EUR -7.6
(-7.7) million.
To further strengthen the com-
pany’s product development and
innovation efforts and speed up
the time-to-market for develop-
ment projects, Glaston established a
group-wide Automation & Innovation
function in connection to the organ-
izational change. The processes and
ways of working for the new function
were defined during summer and
early autumn. In the final quarter, the
new function started operating at full
scale.
Automation and digitalization
continued to be the leading themes in
product development. The focus was
on projects and innovations related to
the automation of the core products
and further development of robotic
and operator-free machine opera-
tions.
To support the automation and
quality scanning for heat-treated
glass, a new AI-based online mea-
surement device was launched to
the market. In order to match future
market needs, a strong focus was
on the continuous development of
the new self-learning Autopilot for
tempering and lamination lines. In
addition, the development of the
new automation platform for all heat
treatment machines, starting with
the MATRIX EVO, and the develop-
ment of new retrofit solutions for
existing machines, continued. To
better match customers’ demand
for double-glazing units, the sealing
robot family offering in Insulating
Glass technologies was extended by
launching the COMFORT’SEALER to
the market. In addition, development
of the Thermo Plastic Spacer (TPS®)
technology continued. For Insulating
Glass upgrades, the extension of the
offering continued with functional
improvements such as sealing robot
materials dosing systems and water
systems.
In Mobility, Display & Solar product
development, the focus continued
to be on broadening the application
field of the products. In Mobility, the
first next-generation pre-processing
CHAMP EVO lines were installed and
operational at the customer’s site.
Enabling the customers to use their
existing equipment for the next dec-
ade, the new CNC96 upgrade for the
conversion of cell generations from
1996–2010 to the latest state-of-the-
art control generation was introduced
to the market.
In 2023, research and product
development expenditure, excluding
depreciation, totaled EUR 9.2 (9.2)
million, of which EUR 3.8 (3.0) million
was capitalized. Research and product
development expenditure amounted
to 4.2 (4.3)% of net sales.
Organization & personnel
Throughout the year, safety and
well-being of the personnel were
prominent themes. In order to
develop the safety culture, safety
standards were developed and har-
monized, as well as the reporting of
accidents and near misses through-
out the Group. The group-wide safety
week was organized in April with
various initiatives to further develop
safety at work at all Glaston sites. In
connection with the safety week, also
the first Glaston Safety Survey was
conducted.
Due to the weakening market
sentiment, actions were taken in
September in the Heat Treatment and
Automotive businesses to adapt the
organizations to the prevailing market
environment. Adjustment measures
were taken in Finland and Switzerland,
and included, among other actions,
terminations of employment con-
tracts. Furthermore, a total of five
temporary employment contracts
were not renewed in China.
In the latter part of the year, the
group-wide employee survey, meas-
Glaston Annual Review 2023 68
Glaston 2023
Sustainability
Governance
Financial Review
uring the employee engagement rate,
was conducted. In total, 82% of the
employees across the organization
answered the survey. The engage-
ment rate was the same as in the pre-
vious year and was 70. The employee
survey is part of the development of a
culture of continuous discussion and
feedback.
On December 31, 2023, Glas-
ton Group had a total of 802 (783)
employees. At the end of December,
the Architecture segment employed
630 (624) and the Mobility, Display &
Solar segment employed 171 (157)
people. Of the Group’s personnel,
35 %, i.e 282 employees, worked in
Germany, 27 %, i.e. 214, worked in
Finland, 12 % worked elsewhere in the
EMEA area, 20 % worked in Asia and
6% worked in the Americas. In the full
year 2023, the Group had an average
of 804 (2022: 775, 2021: 731) employ-
ees. Total personnel costs amounted
to EUR 69.2 million (2022: 65.4, 2021:
58.4), of which salaries and wages
amounted to EUR 57.8 million (2022:
54.7, 2021: 48.6).
Changes in the Executive
Leadership Team
On April 1, 2023, Kaisa Latva took up
her position as General Counsel and
member of the Executive Lead-
ership Team. On May 26, 2023, the
appointment of Riikka Laitasalo as SVP
People and Culture and a member of
the Executive Leadership Team was
announced and she took up her posi-
tion on August 1, 2023.
In connection to the planned
organizational changes, the follow-
ing appointments to the Executive
Leadership Team were disclosed on
June 6, 2023: SVP Heat Treatment
Technologies Miika Äppelqvist was
appointed SVP Architecture while SVP
Automotive & Display Technologies
Robert Prange was appointed SVP
Automation & SCM. Dietmar Walz, SVP
Insulating Glass Technologies, left the
Group to seek new opportunities out-
side Glaston as of October 1, 2023.
On June 26, 2023, the appoint-
ment of José Yepes as SVP Mobility,
Display & Solar and a member of the
Executive Management Team was
announced. José Yepes moved from
the position of Vice President Sales
at Glaston’s Automotive & Display
Business.
Anders Dahlblom served as Pres-
ident & CEO of the company until
November 15, 2023, when he resigned
due to personal reasons. In con-
nection with this, Glaston’s Board of
Directors nominated Board member
Antti Kaunonen as the interim CEO as
of the same date. He continues on the
Board but stepped down from his role
as a member of the Board’s People
and Remuneration Committee.
On December 31, 2023, Glaston’s
Executive Leadership Team consisted
of Antti Kaunonen, Interim CEO; Sasu
Koivumäki, Chief Sales Officer and
Deputy CEO; Miika Äppelqvist, SVP
Architecture; José Yepes, SVP Mobil-
ity, Display & Solar; Robert Prange,
SVP Automation & SCM; Artturi Mäki,
SVP Services; Päivi Lindqvist, Chief
Financial Officer; Kaisa Latva, General
Counsel, and Riikka Laitasalo, SVP
People and Culture.
Strategy
To accelerate the execution of the
strategy for the period 2021−2025,
Glaston disclosed in June 2023 the
plan to reorganize the company’s
structure. The intention of the organi-
zational change is also to enhance the
customer experience with lifecycle
solutions and improve operational
excellence and efficiency.
In the new structure that came into
effect on October 1, 2023, Glaston has
two Business Areas (BA): Architec-
ture and Mobility, Display & Solar. The
Architecture BA consists of Laminat-
ing and Tempering technologies and
Insulating Glass technologies as three
Business Lines. The Mobility, Display &
Solar BA consists of the automotive
and display pre-processing technolo-
gies (Pre-processing) and heat treat-
ment technologies for the mobility,
display and solar glass markets (MDS
Heat Treatment) as two Business
Lines. In addition, two new global
Business Functions − Automation &
Innovation, and Sourcing &
Supply Chain Management (SCM) −
have been created.
Glaston disclosed in the summer
of 2022 the plan to establish produc-
tion for Automotive pre-processing
equipment in Tianjin, China. In 2023,
the production ramp-up continued
in line with plans. Creating the local
automotive supply chain network has
taken longer than initially estimated.
However, the transition to local sourc-
ing improved throughout the year and
the positive development is expected
to continue.
In 2022, Glaston entered the
market of tempering technologies
for solar panel production in China
with the CHF Solar line. The first deal
was closed in September 2022 for
five solar panel tempering lines with
Chinese Kibing Glass, and a follow-up
order for one additional line was
received in September 2023. In the
final quarter of 2023, the installation of
Glaston Annual Review 2023 69
Glaston 2023
Sustainability
Governance
Financial Review
For the non-financial strategic targets,
the lost time injury frequency rate was
6.3 (3.9) as the number of accidents
increased to a total of ten compared
to six in 2022. As Glaston achieved its
non-financial emissions reduction tar-
get in 2022, the company set in 2023
near-term company-wide emission
reduction targets in line with climate
science with the Science Based Tar-
gets initiative (SBTi). For the second
year in a row, the strategic employee
engagement rate was 70. In 2022,
the measurement of the group-wide
customer satisfaction target, Net Pro-
moter Score (NPS) started and during
2023, measurement and scope were
further developed. The customer
satisfaction survey has been sent out
for delivered machine projects and
maintenance services, and the cus-
tomers are asked to rate the success
of the project and quality of services,
and their willingness to recommend
Glaston. In 2023, NPS was 62 (53). As
the number of respondents remains
relatively low, the results cannot be
considered fully representative. In
2024, the efforts to increase the num-
ber of responses from all customer
segments and regions will continue.
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. To support sustain-
able consumption, Glaston focuses on
developing and delivering sustainable,
upgradeable and energy-efficient
products.
In 2023, Glaston continued its work
on reducing the carbon footprint
of its own operations. The energy
efficiency and emission performance
of the buildings are constantly being
improved. In Switzerland, for example,
the electricity generated by the solar
panels installed on the roof of the
factory in Bützberg almost doubled
in 2023. Since 2022, nearly 800 solar
panels with a capacity of over 300
kWp have been installed on the roof
of the factory. The panels generate
electricity for the plant's own use and
some electricity is also fed into the
grid. Emissions from Glaston’s own
operations (Scope 1 & 2) decreased
by 17% and were 1,238 (1,491) tCO2e.
As part of Glaston’s commitment to
sustainable and responsible business
practices, the company joined the
United Nations Global Compact ini-
tiative in March 2023. In April, Glaston
delivered its commitment letter to the
Financial targets by 2025 2023 2022 2021
Net sales – annual average clearly exceeding the
addressable equipment market growth +3% +17% +7%
EBITA –10% 6.8% 6.4% 6.1%
ROCE – 16% 12.7% 10.5% 6.1%
Non-financial targets by 2025 2023 2022 2021
Net promoter Score (NPS) over 40 62 53 -
Lost time injury frequency rate (LTFIR) zero 6.3 3.9 3.3
Employee engagement over 75 out of 100 70 70 -
Reduction of scope 1&2 CO
2
emissions
in relation to net sales by 50% from
the 2020 level -61%
-57%,
target
achieved -13%
the first two CHF Solar lines started at the customer’s premises and the following
three lines were shipped from the factory in Tianjin. The last one will be shipped
in early 2024. Originally, the deliveries were scheduled for the first half of 2023 but
the customer was not ready to receive the equipment.
Financial and non-financial target development
For the financial strategic targets, net sales increased by 3% compared to the
previous year. Glaston estimates that the addressable equipment market for
architectural glass processing declined by 6% and the addressable equipment
market for mobility, display and solar glass grew by 11% in 2023. EBITA margin
developed positively to 6.8% as did the return on capital employed (ROCE),
which increased to 12.7%.
Glaston Annual Review 2023 70
Glaston 2023
Sustainability
Governance
Financial Review
Shares and shareholders
Glaston Corporation’s shares are listed on the Nasdaq Helsinki Small Cap list.
The trading code is GLA1V and the ISIN code is FI4000369657. Each share entitles
its holder to one vote and voting right. Glaston Corporation’s share capital on 31
December 2023 was EUR 12.7 (12.7) million.
1.1.-31.12.2023
No. of shares
and votes
Share turnover,
EUR million
GLA1V 84,289,911 6.4
Highest Lowest Closing Average price *
)
Share price 1.09 0.73 0.74 0.89
31.12.2023 31.12.2022
Market value 61.9 76.0
Number of shareholders 7.472 7.593
Foreign ownership, % 26.8 26.8
*
)
trade-weighted average
international Science Based Targets
initiative (SBTi) and in November, Glas-
ton submitted its new emission reduc-
tion targets to the SBTi for validation.
Glaston commits to reducing absolute
Scope 1 and 2 GHG emissions by 50%
by 2032, compared to the 2022 base
year. The target is in line with limit-
ing global warming to 1.5°C, which is
currently the most ambitious criterion
for setting science-based targets.
Glaston also commits to reducing the
scope 3 GHG emission intensity by
58% per square meter of sold glass
processing capacity within the same
target period. Glaston estimates that
the final, validated target will be pub-
lished during the second half of 2024.
During the spring, Glaston con-
ducted a Double Materiality Assess-
ment as introduced as part of the
EU’s Corporate Sustainability Report-
ing Directive (CSRD) effective from
2024. Through the Double Materiality
Assessment, Glaston identified mate-
rial sustainability topics by evaluating
sustainability-related impacts as well
as risks and opportunities and their
potential financial effects. The assess-
ment was approved by Glaston’s
Board of Directors in October. Based
on the assessment, Glaston will pre-
pare its future sustainability reporting
requirements.
In November, Glaston was re-cer-
tified as a ‘Nasdaq ESG Transparency
Partner’.
As part of the company’s corporate
responsibility work, Glaston’s financing
agreement is linked to sustainability
targets and the loan margin of the
financing agreement is adjusted by
the achievement of Glaston's sustain-
ability objectives annually. The objec-
tives are safety at work, measured as
a decrease of lost time accidents (lost
time injury frequency rate) and CO
2
emissions (scope 1 & 2) in relation to
net sales.
In addition to the strategic non-fi-
nancial targets, Glaston has set other
sustainability targets. To meet the set
targets, the implementation of the
roadmap, created in 2022, progressed
as planned.
Glaston Annual Review 2023 71
Glaston 2023
Sustainability
Governance
Financial Review
Shareholder
Number of
shares
% of shares
and votes
1 Ahlstrom Capital Bv 22,245,716 26.4%
2 Hymy Lahtinen Oy 10,300,161 12.2%
3 Varma Mutual Pension Insurance Company 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 Veli-Matti Reinikkala 825,042 0.98%
10 Mininvest Oy 801,365 0.95%
10 largest shareholders total 57,362,567 68.05%
Nominee registered shareholders 2,629,983 3.12%
Others 24,297,361 28.83%
Total 84,289,911 100.0%
Ownership distribution 31 December, 2023
Shares total
% of shares
and votes
Households 19,404,349 23.0%
Public sector institutions 12,920,563 15.3%
Financial and insurance institutions 9,159,535 10.9%
Corporations 16,076,067 19.1%
Non-profit institutions 1,489,144 1.8%
Foreign countries 22,610,270 26.8%
Total 81,659,928 96.9%
Nominee registered 2,629,983 3.1%
Total 84,289,911 100.0%
Total 84,289,911 100.0%
10 largest shareholders 31 December, 2023 Shareholders by share ownership 31 December, 2023
Number of shares
Number of
shareholders
% of
shareholders Shares total
% of shares
and votes
1 – 100 1,875 25.1% 89,109 0.1%
101 – 1,000 3,209 42.9% 1,412,822 1.7%
1,001 – 10,000 2,055 27.5% 6,544,035 7.8%
10,001 – 100,000 283 3.8% 7,643,986 9.1%
100,001 – 99,999,999 50 0.7% 68,599,959 81.4%
Total 7,472 100.0% 84,289,911 100.0%
Number of shares
issues 84,289,911 100.0%
The share ownership of the Board of Directors and the Executive Leadership
Team is presented in Note 7.1 of the consolidated financial statements.
Glaston Annual Review 2023 72
Glaston 2023
Sustainability
Governance
Financial Review
Share-based incentive plan
In January 2022, Glaston disclosed a
share-based incentive plan for the
period 2022−2026 for key employees.
The Performance Share Plan com-
prises three performance periods: the
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.
Performance Period 2022−2024
The potential reward for the perfor-
mance period 2022−2024 is based on
the Glaston Group’s cumulative com-
parable EBITA and cumulative services
net sales during the period of January
1, 2022−December 31, 2024.
In total 13 key persons, including
the company’s key executive leaders,
belong to the target group of the plan
in the performance period 2022–2024.
Performance Period 2023−2025
The potential reward for the perfor-
mance period 2023−2025 is based on
Glaston Group’s cumulative compa-
rable EBITA, cumulative services net
sales and cumulative earnings per
share during the period of January 1,
2023− December 31, 2025.
In total 16 key persons, including
the company’s key executive leaders,
belong to the target group of the plan
in the performance period 2023–2025.
Additional information, including
essential terms and conditions of the
plan, is available in the stock exchange
release dated January 27, 2022.
In August 2023, Glaston signed
a contract with an external service
provider for the administration of the
share-based incentive plans for the
company’s key employees and for
the acquisition of the shares. For this
purpose, EAI Hedging 3 Oy was estab-
lished in 2023, which, financed by
Glaston, will acquire shares in accord-
ance with the agreement in accord-
ance with the provisions of the Limited
Liability Companies Act regarding the
financing of the acquisition of own
shares. These shares are the property
of EAI Hedging 3 Oy until the shares
are handed over to the participants
within the incentive systems. The legal
ownership of the holding company is
with Evli Alexander Incentives Oy.
On September 15, 2023, the ser-
vice provider acquired 3,000 Glaston
shares and on September 18, 2023 a
total of 247,000 Glaston shares at an
average price of EUR 0.8140. At the
end of 2023, the shares on the balance
sheet were 250,000 shares. The total
number of shares acquired during the
financial period represented 0.3% of
the number of shares.
Governance
Annual General Meeting 2023
The Annual General Meeting of Glas-
ton Corporation was held on April 4,
2023 in Helsinki. The General Meeting
adopted the financial statements and
consolidated financial statements for
the financial period from January 1 to
December 31, 2022 and discharged
the members of the Board of Direc-
tors and the President and CEO from
liability for the financial year from
January 1 to December 31, 2022.
In accordance with the proposal
of the Board of Directors, the Gen-
eral Meeting resolved that a return of
capital of EUR 0.04 per share be dis-
tributed for the financial year ending
December 31, 2022.
Adoption of the Remuneration Report
for governing bodies
In accordance with the proposal of
the Board of Directors, the General
Meeting resolved to adopt the Remu-
neration Report for the governing
bodies. The resolution on the adoption
of the Remuneration Report is advi-
sory.
Composition of the Board of Directors
The number of members of the Board
of Directors was resolved to be seven.
Mr. Veli-Matti Reinikkala, Mr. Sebastian
Bondestam, Mr. Antti Kaunonen, Ms.
Sarlotta Narjus, Ms. Arja Talma, Mr. Tero
Telaranta and Mr. Michael Willome
were re-elected as members of the
Board of Directors.
Remuneration of the members of the
Board of Directors
The General Meeting resolved that
the annual fee of the members of
the Board of Directors are the follow-
ing: Chair of the Board of Directors is
paid an annual fee of EUR 70,000, the
Deputy Chair an annual fee of EUR
43,000 and the other members of the
Board of Directors an annual fee of
EUR 33,000.
Further, the General Meeting
resolved that a member of the Board
of Directors may, at his/her discre-
tion, choose to receive the annual
fixed remuneration partly in com-
pany shares and partly in cash so that
approximately 40% of the annual fixed
remuneration is paid in Glaston Cor-
poration’s shares.
In addition, the General Meeting
resolved, that meeting fees shall be
paid for each meeting of the Board of
Directors that a Member of the Board
Glaston Annual Review 2023 73
Glaston 2023
Sustainability
Governance
Financial Review
has attended so that the Chair of the
Board is paid EUR 800 for meetings
held in the Chair’s home country and
EUR 1,500 for meetings held else-
where and the other Members of the
Board are paid EUR 500 for meetings
held in their home country and EUR
1,000 for meetings held elsewhere.
For per 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 accom-
modation 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 that all members of the Audit
and People and Remuneration Com-
mittees will be paid a meeting fee of
EUR 500 for each meeting attended.
In addition to the meeting fee, the
Chair of the Audit Committee will be
paid an annual fee of EUR 10,000 and
the Chair of the People and Remu-
neration Committee will be paid an
annual fee of EUR 7,500.
Auditor
The General Meeting elected the
authorized public accounting firm
KPMG Oy Ab as the Company’s
auditor.
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
The General Meeting authorized the
Board of Directors to decide on the
repurchase of the Company's own
shares.
The number of own shares to
be repurchased shall not exceed
8,000,000 shares, which corresponds
to approximately 10% of all registered
shares in the Company. The authori-
zation is effective until June 30, 2024
and it revokes corresponding 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 Board of Directors was author-
ized to resolve on all terms and condi-
tions of the issuance of shares, options
and other rights entitling to shares as
referred to in Chapter 10 of the Com-
panies Act.
The authorization is effective until
June 30, 2024 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 Chair of the Board and Sebastian
Bondestam as Deputy Chair of the
Board. In addition, the composition of
the Board committees was resolved
to be as follows:
Audit Committee: Arja Talma (Chair),
Sarlotta Narjus, Tero Telaranta
People and Remuneration Com-
mittee: Veli-Matti Reinikkala (Chair),
Sebastian Bondestam, Antti Kau-
nonen, Sarlotta Narjus, Michael Wil-
lome.
Shareholders’ Nomination Board
On September 7, 2023, Glaston
announced the composition of the
Shareholders Nomination Board.
The Shareholders’ Nomination
Board comprises one member
appointed by each of the four largest
shareholders of Glaston Corporation.
The shareholders entitled to appoint a
member are determined on the basis
of the shareholders’ register of the
Company maintained by Euroclear
Finland Ltd. on the first working day in
September.
Based on the ownership on Sep-
tember 1, 2023, the following persons
were nominated as members of the
Nomination Board: Lasse Heinonen
(Ahlstrom Capital BV), Jaakko Kurikka
(Hymy Lahtinen Oy), Pekka Pajamo
(Varma Mutual Pension Insurance
Company) and Esko Torsti (Ilmarinen
Mutual Pension Insurance Company).
Veli-Matti Reinikkala, Chair of the
Company’s Board of Directors, has
served as an advisory member of the
Nomination Board.
In its organizing meeting on Sep-
tember 7, 2023, the Nomination Board
elected Lasse Heinonen amongst its
members as the Chair.
Glaston Annual Review 2023 74
Glaston 2023
Sustainability
Governance
Financial Review
Report on non-financial
information 2023
Sustainable business has been set as
a focus area in Glaston’s strategy and
the company has set non-financial
targets alongside financial targets.
They emphasize the sustainability of
the company’s business and the stra-
tegic importance of environmental,
social and governance (ESG) com-
mitments. Glaston’s material responsi-
bility themes are: responsibility in own
operations (personnel, environment,
responsible business), responsible
procurement, responsible partner and
responsible member of society. This
Report of non-financial information
includes the targets and key indicators
for each material aspect of Glaston for
the purposes of managing sustaina-
bility work. In addition, this Statement
of non-financial information includes
information about Glaston’s taxonomy
eligibility and alignment.
Sustainability will be discussed in
more detail in Glaston’s Annual Report,
which will be published in week 12.
Glaston’s business model and
value creation
Glaston provides glass processing
machines and related services to the
architectural glass, mobility glass, dis-
play and solar glass industries. Glas-
ton’s portfolio includes heat treatment
and insulating glass technologies and
services in the architectural market,
heat treatment technologies in the
mobility, display and solar markets
and pre-processing technologies in
the mobility and display glass industry
markets, as well as related services.
Glaston has the most extensive port-
folio in the sector.
As an innovative trailblazer in its
industry, Glaston seeks to drive the
industry toward a more sustainable
future. The majority of the company’s
business concerns customers oper-
ating in the architecture segment.
The key technologies of the com-
pany’s products facilitate improving
the energy efficiency and safety of
buildings.
Glaston has sales and service
offices and production in nine coun-
tries around the world. At the end of
2023, the company had four pro-
duction plants: Tampere in Finland;
Neuhausen in Germany, Bützberg in
Switzerland, and Tianjin in China. At
the end of the year, the company had
802 employees.
Glaston wants to have a positive
impact on the societies in which it oper-
ates. The company creates value for
its customers with its energy-efficient
and reliable products and services, in
particular. As an employer and buyer
of goods and services, the company
creates prosperity and jobs locally. In
addition, the company creates financial
value as a taxpayer in the countries in
which it operates. Glaston engages
in close cooperation with different
research institutions and universities,
which creates societal value through
product development and innovation. In
2023, Glaston paid shareholders a return
of capital of EUR 3.4 million. Glaston paid
EUR 1.1 million in taxes.
Responsibility at Glaston
In accordance with Glaston’s strat-
egy, the company’s objective is to
build a better tomorrow through safer,
smarter, and more energy-efficient
glass solutions. As environmental
awareness increases, the demand
for more energy-efficient and envi-
ronmentally more sustainable glass
solutions will increase. Glaston con-
tinuously develops its product and
service offering to be able to meet
clients’ increasing need for reducing
the material and energy consumption
and emissions of their production.
In Glaston’s strategy, sustaina-
ble business is a key focus area, and
non-financial targets have been intro-
duced alongside the financial targets.
The non-financial strategic targets
promoting sustainable business are:
• Customer satisfaction (Net Pro-
moter Score, NPS) over 40 by 2025.
• Group-wide occupational safety tar-
get: zero lost-time accidents (LTA),
(progress is measured by accident
frequency, LTIFR) by 2025.
• Employees’ commitment rate over
75 (out of 100) by 2025.
• Reduction of absolute scope 1 and
2 GHG emissions by 50% by 2032,
compared to the 2022 base year,
and reduction of scope 3 GHG
emission intensity by 58% per
square meter of sold glass process-
ing capacity by 2032.
Glaston Annual Review 2023 75
Glaston 2023
Sustainability
Governance
Financial Review
Material responsibility aspects
Glaston updated the material aspects
of its responsibility in late 2021, paying
particular attention to the non-finan-
cial targets of the updated strategy.
The material responsibility themes
are: responsibility in own operations
(personnel, environment, responsible
business), responsible procurement,
responsible partner and responsible
member of society. In connection
with the materiality assessment, the
most significant climate and biodi-
versity risks associated with Glaston’s
operations and caused by them were
also identified. In 2023, the implemen-
tation of the targets connected to the
materiality themes continued. The
results are reported in more detail in
Glaston’s Annual Report.
Responsible business conduct
At Glaston, responsibility is part of
the day-to-day operations. Glaston is
committed to complying with national
and international law, regulations and
commonly accepted operating meth-
ods in full in everything it does.
Glaston has prepared a Code of
Conduct to be able to do more than
the required minimum. The Code,
approved by the company’s Board of
Directors, presents Glaston’s ethical
principles in a clear way, and it guides
all of the company’s operations. The
Code of Conduct lays down the com-
pany’s requirements and expectations
with regard to responsible and ethical
operations. The Code guides Glas-
ton’s employees in their day-to-day
work with their colleagues and clients,
suppliers and other stakeholders. The
matters discussed include work-
place practices, responsible business
practices, environmental matters and
sustainability. The Code of Conduct is
published in Finnish, English, German
and Chinese so that as many employ-
ees as possible can read it in their
own language. A Code of Conduct
training is mandatory for employees
once every two years and it is also
an integral part of the induction of
new employees. Training in the Code
is the key indicator of responsible
business, with the coverage target set
at 100 percent. In 2023, more than 98
percent of employees had completed
the Code of Conduct training.
The Code of Conduct also includes
a commitment to respecting human
rights; all forms of harassment and
other inappropriate treatment are
strictly prohibited. Glaston is commit-
ted to preventing bribery and cor-
ruption in its day-to-day operations.
Every Glaston employee should report
any misdemeanors or violations of
the Code of Conduct. Glaston investi-
gates all reported incidents promptly
and confidentially and takes appropri-
ate action based on the findings of the
investigation. During 2023, a total of
four suspected misdemeanors or vio-
lations of the Code of Conduct were
reported including the workplace
harassment cases mentioned below,
of which three led to the termination
of employment.
The Code of Conduct is com-
plemented by other policies and
guidelines on responsible conduct:
Sustainability Policy, Supplier Code of
Conduct, Anti-bribery and anti-cor-
ruption policy, People Policy, Environ-
mental and Climate Change Policy,
Human Rights Policy, Information
Security Policy, Tax Policy, Purchasing
guidelines and Health & Safety Policy.
Glaston has a process in place to
ensure that any breaches of the Code
of Conduct and other guidelines can
be reported. Potential violations of
the Code can be reported by Glaston
employees and external stakeholders
in a number of ways, including through
an externally maintained reporting
channel through which employees
and third parties can report anon-
ymously. Glaston investigates all
reported incidents promptly and
confidentially and takes appropriate
action based on the results of the
investigation.
Fair competition
Glaston takes the competition rules
very seriously and every employee
must act in accordance with them.
Glaston complies internationally with
EU competition legislation, while also
taking into account stricter local rules.
Glaston regularly organizes training
for its personnel and senior manage-
ment on fair business and competi-
tion issues. The training material was
revised towards the end of 2023 and
will be rolled out during 2024. The fair
competition online training is always
available on the company's intranet.
Any violations or suspicions of
improper activity can be reported via
the whistleblowing channel.
Taxation
Glaston is committed to complying
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's Tax Policy defines Glaston
Group’s tax strategy as well as consti-
Glaston Annual Review 2023 76
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Sustainability
Governance
Financial Review
tutes a general framework and guide-
lines for tax governance within the
Group. The Tax Policy also provides a
framework for tax risk management
and determines key measures and
controls to manage taxes.
Information security
Information security has become
increasingly important, and particular
attention has been paid to the devel-
opment of information security in
relation to both Glaston’s own and its
clients’ data. IT security is monitored
and audited, and Glaston’s Execu-
tive Leadership Team and the Audit
Committee of the Board of Directors
regularly review information security
matters and plan, and measures to
manage risks. The company uses a
SOC (Security Operations Center)
service for monitoring information
security events 24/7. No significant
information security incidents were
reported in 2023.
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 objectives and
functions. The principles and oper-
ating method of risk management
are specified in the risk management
guideline approved by the compa-
ny’s Board of Directors. The leading
principle of risk management is the
continuous, systematic and appropri-
ate development and execution of the
risk management process, aiming to
comprehensively identify and appro-
priately manage risks.
To help mitigate risks and drive eth-
ical practices in the supply chain, Glas-
ton’s Supplier Code of Conduct states
the sustainability standards expected
from third parties. The Supplier Code
of Conduct has requirements, for
example, on anti-corruption, safety,
human rights, as well as environmental
and compliance topics. The Supplier
Code of Conduct has been added to
the purchasing contracts, so in the
future, all Glaston suppliers will be
required to adhere to it. By the end of
2023, 74% of the relevant suppliers had
committed to the Code.
Management of sustainability
Sustainable business, environmental
and social responsibility, and good
corporate governance are included
in the strategy approved by the Board
of Directors. Sustainable business is
promoted within a group-wide cor-
nerstone project.
The Sustainability Policy adopted by
Glaston's Board of Directors describes
the Group's sustainability manage-
ment and governance principles and
priorities and defines responsibilities
for different functions. The company's
CFO is responsible for sustainability
at management team level and leads
the Group's Sustainability function.
The Head of the Sustainability Func-
tion leads the operational sustainabil-
ity work. The development of the sus-
tainability agenda is promoted by the
sustainability working group, tasked
with coordinating the development of
sustainable business at Glaston and
implementing related practices. The
Group reports on the development of
responsible business to the Group’s
Executive Leadership Team and Board
of Directors.
Personnel and social
responsibility
At the end of 2023, Glaston had 802
employees (December 31, 2022: 783),
of whom 212 (195) worked in Finland.
The average number of employees
during the year was 804 (775). Per-
sonnel expenses totaled EUR 69.2
(65.4) million in January–December.
Employees who are professional,
committed and feel well are Glaston’s
strength. Glaston has committed to
the continuous improvement of its
employees’ expertise, offering them a
safe and inspiring work environment in
which they can learn and develop.
Glaston's HR work is guided by the
new People Policy approved by the
Board of Directors in 2023, which sets
out, among other things, the compa-
ny's principles on diversity, equality
and inclusion. All Glaston employees
must be treated fairly and equally.
Insulting and inappropriate behavior is
not tolerated. Glaston is committed to
equality, and therefore all harassment
is prohibited. Glaston respects the
freedom of association and recog-
nizes the right to collective bargaining.
Employees and candidates must be
treated and assessed based on their
work-related abilities, and no one may
be discriminated based on race, skin
color, nationality, ethnic origin, religion,
gender, sexual orientation, disability,
trade union membership or political
affiliations.
The company’s aim is for no cases
of workplace harassment to be
reported. All reported cases are inves-
tigated, and if it is found warranted,
the necessary action will be taken.
The parties involved will be informed
of the outcome of the process. Three
suspected cases of workplace har-
assment were reported in 2023, and
Glaston Annual Review 2023 77
Glaston 2023
Sustainability
Governance
Financial Review
following the investigation, it resulted
in the termination of the employment
for two of the employees concerned.
Glaston’s strategy highlights occu-
pational safety and the commitment
rate of personnel as focus areas. The
employee engagement rate target
set by the company is for the rate
to increase to over 75 on a scale of
1–100 by 2025. The employee engage-
ment is measured every year with
an employer survey, and in 2023 the
commitment rate was 70 (70).
The Group-level occupational
safety target is zero lost-time acci-
dents. In order to reach the target,
safety has been incorporated into
the ways of working. A safety working
group, comprising representatives of
different functions, works to man-
age and develop safety. In 2023, the
accident frequency rate, or number
of lost-time accidents per one million
hours worked (LTIFR), was 6.3 (3.9).
Respect for human rights
Human rights belong to everyone.
Glaston is committed to respecting all
human rights recognized in the UN’s
Universal Declaration of Human Rights
and existing human rights conven-
tions. Glaston is committed to acting
according to United Nations Guiding
Principles on Business and Human
Rights (UNGP) and OECD Guidelines
for Multinational Enterprises. As of
March 2023, Glaston is a signatory
to the UN Global Compact and is
thereby committed to its principles
with respect to human rights, labour,
the environment, and anti-corruption.
Glaston is committed to the Inter-
national Labour Organization’s (ILO)
Declaration on Fundamental Princi-
ples and Rights at Work.
Glaston’s fundamental principles
relating to human rights are speci-
fied in Glaston’s Code of Conduct,
the principles being supplemented
by the separate Human Rights Policy
approved by the company’s Board of
Directors in 2023. Human rights are
also addressed in Glaston’s People
Policy, which outlines the company’s
view of aspects such as diversity,
equal treatment and engagement,
freedom of association, remuneration
and working hours.
In accordance with its Code of Con-
duct, Glaston treats its suppliers, service
providers and subcontractors fairly. In
order to ensure that human rights are
also respected in the supply chain, the
fundamental requirements set by the
company are also incorporated into the
Supplier Code of Conduct.
Glaston’s Human Rights Policy
describes the Group’s key risks and
impacts relating to human rights, as
well as measures to assess, prevent
and mitigate these risks and negative
impacts. The Human Rights Policy
addresses, among other things, the
right of everyone in Glaston’s value
chain to health and safety, good work-
ing conditions, a living wage and equal
and non-discriminating treatment.
In fall 2023, Glaston conducted an
assessment of human rights-related
risks with an external specialist. Risks
relating to occupational safety, both
in Glaston’s own activities and cus-
tomers’ production, were identified
as having the most serious possi-
ble impacts. In addition, risks were
identified with working conditions
in the supply chain and equal and
non-discriminating treatment in own
operations. The survey also identified
key actions connected to the man-
agement of identified human rights
risks. Glaston’s Human Rights Policy is
available on the company’s website.
Glaston’s human rights-related due
diligence process identifies, assesses
and prioritizes the negative human
right impacts of business in a system-
atic manner. Glaston aims to prevent
and mitigate these impacts and, if
necessary, take corrective action to
remedy the negative impacts.
The risks and impacts connected
to human rights are assessed using
various risk assessments. Glaston
uses processes to assess and mitigate
risks relating to occupational safety,
supplier performance and employee
engagement. These processes are
also continuously developed to asses
human rights impacts. The aim is to
incorporate human rights impacts into
Glaston’s supplier selection, assess-
ment and audit processes.
In 2023, no suspicions of violations
of human rights were reported in the
company.
Anti-corruption and
anti-bribery
At Glaston, combating corruption and
bribery is included in the company’s
Code of Conduct and the company
undertakes to promote fair competi-
tion and comply with legislation in all of
its operations. The Code of Conduct
states that business relationships must
be based on objective criteria. Direct or
indirect payments must not be made
or the company’s funds transferred
directly or indirectly to any party in
order to obtain inappropriate benefit.
The Code of Conduct requires avoid-
ing conflicts of interest and refusing all
inappropriate payments and benefits.
Glaston’s Code of Conduct is com-
plemented by the anti-bribery and
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Glaston 2023
Sustainability
Governance
Financial Review
anti-corruption policy. The purpose
of this policy is to increase Glaston
employees’ awareness of the risk of
corrupt payments, to unequivocally
prohibit the payment and receipt of
bribes, and to ensure that the com-
pany conducts business honestly, in
accordance with ethical standards and
in compliance with anti-corruption
laws, rules and regulations.
Combating corruption and bribery
are covered in the mandatory Code
of Conduct training. In addition, a
separate anti-bribery and anti-corrup-
tion training program was developed
in 2023. The training program will be
implemented in the Group in early
2024.
In 2023, no bribery or suspicions of
corruption emerged in the company.
Environmental responsibility
The majority of Glaston’s environ-
mental impacts are caused when
customers use Glaston technologies
throughout their lifecycle. The com-
pany's environmental work therefore
covers its own operations, its supply
chain and its customers. Glaston's
environmental responsibility is guided
by the company's commitment to sci-
ence-based emission targets to limit
global warming to 1.5 degrees Celsius.
Glaston’s commitment to environ-
mental responsibility can be found in
the Code of Conduct and in the Envi-
ronmental and Climate Change Policy,
approved by the Board of Directors.
Both documents are publicly available
on the company’s website.
Glaston develops and designs its
machines to endure use at a high
utilization rate. Predictive and reg-
ular maintenance and an extensive
range of upgrade products increase
the efficiency of production opera-
tions and prolong the lifecycle of the
machines. The lifecycle of Glaston’s
glass processing machines is up to
tens of years thereby supporting the
targets of sustainable development
and circularity.
The development of the energy
and material efficiency of products
is a continuous effort. Improving the
energy efficiency of the products
has been at the core of product
development work for a long time,
and as a result of the development
work, clients are able to process their
glass increasingly energy-efficiently.
In addition, the company invests in
digital and IoT-based solutions and
services in its product development.
They make it possible to optimize the
performance of the machine and
real-time client support without envi-
ronmentally burdening travel.
The safety of the use of Glaston
machines is based on the EU Machine
Directive and the EN standards men-
tioned therein. All Glaston machines
made in Europe comply with the said
EU Directive.
Glaston operates in accordance
with the ISO 9001 quality manage-
ment system in its assembly and
production units. In Finland, Glaston
manages environmental matters in
accordance with the ISO 14001 envi-
ronmental management system.
In Glaston’s operations, the main
environmental impacts are caused by
the electricity consumed during the
operation of the sold machines, and
the products and services purchased
for manufacturing. In its own opera-
tions, the most significant emissions
arise from the energy used to heat its
premises.
At the end of 2023, Glaston com-
mitted to set science-based emission
reduction targets. Glaston commits to
reducing absolute scope 1 and 2 GHG
emissions by 50% by 2032, compared
to the 2022 base year. The target is
in line with limiting global warming
to 1.5°Celsius. In order to achieve the
emission reduction targets of its own
operations, Glaston intends to phase
out the use of natural gas and other
fossil energy sources and to continue
to significantly increase the share of
renewable energy.
Emissions from Glaston's own
operations represent a small propor-
tion of the company’s total emissions.
The vast majority, around 99.8%, of
all emissions related to Glaston's
activities are generated in the com-
pany's value chain (scope 3) and the
most significant sources of emissions
are the electricity consumption of
machines manufactured by Glaston
(2022: 91%) and purchased goods and
services (2022: 8%). Glaston commits
to reducing the scope 3 GHG emis-
sion intensity by 58% per square meter
of sold glass processing capacity by
2032. The target has been sent to the
SBTi for evaluation, and Glaston esti-
mates that the final, validated target
will be published during the second
half of 2024.
In 2023, there were no environ-
mental accidents or significant spills
reported.
Taxonomy eligibility
and alignment
The European Union’s Sustainable
Finance Classification System (EU
taxonomy) was published in 2020 and
contributes to the achievement of the
EU environmental goals by channe-
ling investments for the transition to a
Glaston Annual Review 2023 79
Glaston 2023
Sustainability
Governance
Financial Review
climate-neutral and environmentally
sustainable economy. The regulation
applies to Glaston and requires disclo-
sure of the share of environmentally
sustainable revenue, capital expendi-
ture and operating expenditure.
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. In June 2023, the EU Com-
mission adopted the Environmental
Delegated Act, EU 2023/2486, includ-
ing the criteria under which an eco-
nomic activity qualifies as contributing
substantially to the sustainable use
and protection of water and marine
resources, to the transition to a circu-
lar economy, to pollution prevention
and control, or to the protection and
restoration of biodiversity and eco-
systems and for determining whether
that economic activity causes no
significant harm to any of the other
environmental objectives. Glaston has
evaluated the new criteria and does
not have activities that could be clas-
sified under the new set of criteria.
For an eligible activity to be aligned
with the EU Taxonomy it further has to
comply with the Technical Screening
Criteria (TSC) and the Do No Signifi-
cant Harm (DNSH) Criteria. In addition,
the company has to fulfill Minimum
Social Safeguards.
Technical Screening Criteria
The technical screening criteria form
the basis for taxonomy reporting
and are criteria for determining the
conditions under which an economic
activity qualifies as contributing sub-
stantially to the environmental objec-
tives and for determining whether
that economic activity causes no
significant harm to any of the other
environmental objectives.
Glaston has conducted an analysis
of its operations and concluded that
the Insulating Glass technologies and
related services, as well as all equip-
ment and services to solar energy
technology providers, are enabling
activities that substantially contrib-
ute to climate change mitigation.
Glaston’s Insulating Glass technolo-
gies, machines, manufacturing lines,
upgrade options and services that
enable manufacturing of insulating
glass unit systems are taxonomy-el-
igible activities, conforming with the
definition and fulfilling the internation-
ally standardized requirements and
essential characteristics of insulating
glass units. Further, hand-operated or
power-driven lifting, handling, load-
ing or unloading machinery, edge
working machines and equipment are
considered not to be taxonomy-eli-
gible activities when not installed as a
part of existing or new insulating glass
manufacturing lines.
The EU Taxonomy has set clear
requirements for windows and doors
for substantial contribution to climate
change mitigation in the Annex to the
Commission Delegated Regulation*).
The manufacture of energy-effi-
ciency equipment for buildings, in
accordance with Section 3.5 of the
Annex, identifies the manufacturing
of high-performance windows and
their key components as an economic
activity that significantly contributes to
climate change mitigation. Insulated
Glass Units (IGU’s) represent between
70 to 80% of the surface area of a win-
dow and are key components affect-
ing their energy efficiency, which has
been demonstrated in studies of CO2
savings**
)
. Insulating glass manufac-
turing technologies for windows are
essential for achieving the set thresh-
old in the regulation.
The economic activities of manu-
facturing energy-efficient windows
and doors are covered in Section 3.5
by NACE codes C16.23 and C25.12,
in accordance with the statistical
classification of economic activities
established by Regulation (EC) No
1893/2006. Glaston’s insulating glass
technologies and related services are
enabling activities in accordance with
Article 10 of Regulation (EU) 2020/852.
Similarly, Glaston’s technologies
for processing glass for photovol-
taic modules and related services is
regarded as an enabling activity as it
is a key component for manufacturing
renewable energy technologies, and
is covered in Section 3.1 by NACE code
C28.99.
Further, Glaston has made an
investment in a solar power plant at
its production unit in Switzerland. The
solar panels have been producing
energy for the factory's own use since
November 2022. The investment is
covered in Annex 1 of the Delegated
Regulation*), Section 7.6. Installation,
maintenance and repair of renewable
energy technologies by NACE code
43.21.
Based on this 46 (43)% of the
Group’s turnover is taxonomy eligi-
ble. In total, Glaston has identified 34
(28)% of the total investments to be
Glaston Annual Review 2023 80
Glaston 2023
Sustainability
Governance
Financial Review
taxonomy eligible as well as 25 (28) %
of operating expenditure in 2023. The
growth in investments is due to Glas-
ton investing heavily in the develop-
ment of insulating glass machines and
tempering lines which are specified
for manufacturing glass components
for solar panel production.
Do No Significant Harm (DNSH)
Glaston has carried out an assess-
ment to ensure that the do no sig-
nificant harm criteria are met for the
environmental objectives 2-6 listed
above in accordance with the appli-
cable technical screening criteria
for Climate Change Mitigation. The
assessment is based on scientific arti-
cles, industry association publications
and established international product
standards.Glaston’s eligible activities
comply with all DNSH criteria as set
out in the regulation.
The DNSH criteria for disclosed
activities for glass processing tech-
nologies for photovoltaic modules (3.1.
manufacture of renewable technol-
ogies) and for insulating glass tech-
nologies (3.5 manufacture of energy
efficiency equipment for buildings)
are the same.
Glass is a fully recyclable and reus-
able material and does not contain
substances of concern. Recycled
glass is a valuable resource for the
glass industry to replace virgin raw
materials and input as a raw material
to reduce energy consumption and
CO2 emissions. Further, material off-
cuts generated in flat glass processing
can be subject to direct recycling in
glass manufacturing furnaces due to
its high purity. In addition, flat glass
products manufactured accordingly
to relevant product standards ensure
reasonable working life and durabil-
ity. Also, insulated glass units can be
dismantled, collected and recycled.
Insulating glass units can be assigned
with information on traceability and
substances of concern when appli-
cable.
Minimum safeguards (MS)
As set out in the EU Taxonomy Regu-
lation, as well as in the final report on
Minimum Safeguards published by the
EU Platform on Sustainable Finance,
Glaston has reviewed the Minimum
Safeguards with respect to human
rights, bribery and corruption, taxation
and fair competition. Compliance with
Minimum Social Safeguards has been
assessed at company level. None of
the indicators recommended for the
assessment have been discovered in
the company’s operations. Based on
this assessment, Glaston meets the
criteria for alignment with Minimum
Safeguards.
Glaston is committed to operating
in accordance with the UN Guiding
Principles on Business and Human
Rights (UNGPs) and the OECD Guide-
lines for Multinational Enterprises.
Glaston is a signatory to the UN Global
Compact and is therefore commit-
ted to its principles on human rights,
labour, environment and anti-cor-
ruption. Glaston's Code of Conduct
and Human Rights Policy set out the
standards expected of all employees
and all Glaston Group companies.
Glaston also requires its business part-
ners to comply with similar principles.
The company therefore encourages
its business partners to continuously
improve and develop their human
rights practices to meet the human
rights standards and expectations
set out in Glaston's Human Rights
Policy. For more information, see the
Responsible Business Conduct and
Respect for Human Rights sections.
Conclusion
Glaston has reviewed the Techni-
cal Screening Criteria for each of its
eligible activities and all the eligible
activities also meet the Technical
Screening Criteria for substantial con-
tribution to climate change mitigation.
Further, based on the analysis made
by the company, the identified activi-
ties do no significant harm (DNSH) to
any of the other five environmental
objectives. Compliance with Minimum
Social Safeguards has been assessed
at the level of the whole company and
based on the assessment Glaston
determined the company fulfills the
criteria for Minimum Social Safe-
guards.
Based on the assessment made
by Glaston, 46 (43)% of the Group’s
turnover is taxonomy aligned. In total,
Glaston has identified 34 (28)% of the
total investments to be taxonomy
aligned as well as 25 (28)% of operat-
ing expenditure in 2023. The growth in
investments is due to Glaston invest-
*) 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.
Glaston Annual Review 2023 81
Glaston 2023
Sustainability
Governance
Financial Review
ing heavily in development of insu-
lating glass machines and tempering
lines which are specified for manu-
facturing glass components for solar
panel production. In addition, Glaston
discloses information referred to in
Article 8(6) and (7) of the amended
Delegated Regulation (EU) 2021/2178
as in standard template 1, Nuclear and
fossil gas related activities. Glaston
does not have nuclear energy or fossil
gas related activities***
)
.
***
)
COMMISSION DELEGATED REGULATION
(EU) 2022/1214 of 9 March 2022 amending Del-
egated Regulation (EU) 2021/2139 as regards
economic activities in certain energy sectors
and Delegated Regulation (EU) 2021/2178 as
regards specific public disclosures for those
economic activities
Glaston Annual Review 2023 82
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Governance
Financial Review
Financial year 2023 2023 Substantial contribution criteria DNSH criteria
Economic activities
Code(s)
Turnover, EUR thousand
Proportion of turnover, year 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy aligned (A.1)
or eligible (A.2) turnover, year 2022
Category enabling activity
Category transitional activity
A. TAXONOMYELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Activity 1: Insulating glass technologies CCM 3.5 95,968 44% Y N N N N N Y Y Y Y Y Y 42% E
Activity 2: Glass processing technologies for
photovoltaic modules CCM 3.1 3,792 2% Y N N N N N Y Y Y Y Y Y 1% E
Turnover of environmentally sustainable activities (Taxonomy-aligned)
(A.1) 99,760 46% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 43%
Of which enabling
Of which transitional
99,760 100% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 100% E
0 0% 0% 0%
A.2. Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Activity 1: None 0 0% 0%
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2) 0 0% 0% 0% 0% 0% 0% 0% 0%
A. Turnover of taxonomy eligible activities (A.1 + A.2) 99,760 46% 100% 0% 0% 0% 0% 0% 43%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) 119,948 54%
TOTAL 219,708 100%
Turnover
Glaston Annual Review 2023 83
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Financial year 2023 2023 Substantial contribution criteria DNSH criteria
Economic activities
Code(s)
CapEx, EUR thousand
Proportion of CapEx, year 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy aligned (A.1)
or eligible (A.2) CapEx, year 2022
Category enabling activity
Category transitional activity
A. TAXONOMYELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Activity 1: Insulating glass technologies CCM 3.5 2,691 28% Y N N N N N Y Y Y Y Y Y 24% E
Activity 2: Glass processing technologies for
photovoltaic modules CCM 3.1 368 4% Y N N N N N Y Y Y Y Y Y 1% E
Activity 3: Installation, maintenance and repair of
solar photovoltaic systems and the ancillary technical
equipment (Switzerland factory) CCM 7.6 208 2% Y N N N N N Y Y Y Y Y Y 3% E
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 3,266 34% 100% 0% 0% 0% 0% 0% K K K K K K 28%
Of which enabling
Of which transitional
3,266 100% 100% Y Y Y Y Y Y 100% E
0 0% 0% 0%
A.2. Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Activity 1: None 0 0% 0%
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2) 0 0% 0% 0% 0% 0% 0% 0% 0%
A. CapEx of taxonomy eligible activities (A.1 + A.2) 3,266 34% 100% 0% 0% 0% 0% 0% 28%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B) 6,334 66%
TOTAL 9,600 100%
CapEx
Glaston Annual Review 2023 84
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Going forward, Glaston's conclusions on the taxonomy may change as the
assessment criteria become more precise and further guidance is available.
Financial year 2023 2023 Substantial contribution criteria DNSH criteria
Economic activities
Code(s)
OpEx, EUR thousand
Proportion of OpEx, year 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy aligned (A.1)
or eligible (A.2) OpEx, year 2022
Category enabling activity
Category transitional activity
A. TAXONOMYELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Activity 1: Insulating glass technologies CCM 3.5 2,425 25% Y N N N N N Y Y Y Y Y Y 28% E
Activity 2: Glass processing technologies for
photovoltaic modules CCM 3.1 17 0% Y N N N N N Y Y Y Y Y Y 0% E
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 2,442 25% 100% 0% 0% 0% 0% 0% K K K K K K 28%
Of which enabling
Of which transitional
2,442 100% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 100% E
0 0% 0% 0%
A.2. Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Activity 1: None 0 0% 0%
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2) 0 0% 0% 0% 0% 0% 0% 0% 0%
A. OpEx of taxonomy eligible activities (A.1 + A.2) 2,442 25% 100% 0% 0% 0% 0% 0% 28%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B) 7,519 75%
TOTAL 9,961 100%
OpEx
Glaston Annual Review 2023 85
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Row Nuclear energy related activities
1. The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
NO
2. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
NO
3. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that
produce electricity or process heat, including for the purposes of district heating or industrial processes such
as hydrogen production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4. The undertaking carries out, funds or has exposures to construction or operation of electricity generation
facilities that produce electricity using fossil gaseous fuels.
NO
5. The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat
generation facilities that produce heat/cool using fossil gaseous fuels.
NO
Nuclear and fossil gas related activities
Glaston Annual Review 2023 86
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Accounting policy
The consolidated financial state-
ments of Glaston Group are prepared
in accordance with International
Financial Reporting Standards (IFRS),
including International Accounting
Standards (IAS) and Interpretations
issued by the International Financial
Reporting Interpretations Committee
(SIC and IFRIC). The Taxonomy key
performance indicators (KPIs) have
been calculated by using the financial
information presented in Glaston’s
financial statements for the fiscal year
2023.
Turnover
Glaston has calculated KPI for turno-
ver based on its interpretation of defi-
nitions presented in the Disclosures
Delegated Act.
The numerator of turnover KPI, as
defined in the Disclosures Delegated
Act, includes the portion of net turn-
over derived from products or ser-
vices, including intangibles, associated
with Taxonomy aligned economic
activities. The denominator equals
Group total net sales that are reported
in the Annual Report (see page 99) in
accordance with IFRS for the period
January 1 to December 31, 2023.
Glaston’s taxonomy aligned turn-
over includes sales of insulating glass
machines and services as well as sales
of tempering lines which are specified
for manufacturing glass components
for solar panel production. For Insu-
lating Glass technologies, machines,
manufacturing lines, upgrade options
and services that enable manufac-
turing of insulating glass unit systems
are included whereas loading or
unloading machinery, edge working
machines and equipment when not
installed as a part of an existing or new
insulating glass manufacturing lines,
are excluded.
Turnover KPI is calculated based
on net sales per project and therefore
double counting is avoided.
Capital expenditure
Glaston has calculated the KPI for
taxonomy aligned CapEx based on its
interpretation of definitions presented
in the Disclosures Delegated Act.
The denominator of CapEx KPI, as
defined in the Disclosures Delegated
Act, includes additions to tangible and
intangible assets during the financial
year considered before deprecia-
tion, amortization and any re-meas-
urements. Total capital expenditure
covers costs that are accounted in
accordance with IAS 16 Property,
Plant and Equipment, IAS 38 Intangi-
ble Assets as well as IFRS 16 Leases.
Glaston capitalizes development
costs of new products. Additionally,
CapEx includes other tangible and
intangible assets, such as property, IT
equipments and software, machinery
and other equipments. Total CapEx
inclusions are further described in
Notes 3.1. Intangible Assets, 3.2. Tangi-
ble Assets and 3.3. Leases.
The numerator of CapEx KPI
includes the part of capital expend-
iture, as defined in the Disclosures
Delegated Act, that relates to assets
or processes that are associated with
taxonomy aligned economic activities.
Should the capital expenditure relate
only partly to taxonomy-aligned eco-
nomic activity, the expenditure has
been attributed through an allocation
key based on net sales.
Operating expenditure
Glaston has calculated KPI for taxon-
omy aligned OpEx based on its inter-
pretation on definitions presented in
the Disclosures Delegated Act.
The denominator of OpEx KPI, as
defined in the Disclosures Delegated
Act, includes direct non-capitalized
costs that relate to research and
development, building renovation
measures, short-term lease, day-to-
day servicing (i.e. maintenance and
repair) of property, plant and equip-
ment. Research and development
costs include personnel expenses and
other fixed costs.
The numerator of OpEx KPI
includes the part of operating
expenditure, as defined in the Dis-
closures Delegated Act ****
)
, that
relates to assets or processes that
are associated with taxonomy aligned
economic activities.
Should the operating expend-
iture relate only partly to a taxon-
omy aligned economic activity, the
expenditure has been attributed
through an allocation key based on
net sales. Depreciation is excluded
from this KPI.
****
)
COMMISSION DELEGATED REGULATION
(EU 2021/2178 of 6 July 2021 supplementing
Regulation (EU) 2020/852 of the European
Parliament and of the Council by specifying
the content and presentation of information to
be disclosed by undertakings subject to Arti-
cles 19a or 29a of Directive 2013/34/EU con-
cerning environmentally sustainable economic
activities, and specifying the methodology to
comply with that disclosure obligation
Glaston Annual Review 2023 87
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Financial Review
Business risks
Glaston continuously analyses and
evaluates risks that may result from
changes in the business environment
or the company’s operational activities
and plans for mitigation actions. The risk
factors described below may poten-
tially have a negative impact on the
company’s business or financial status
and therefore on the company’s value.
Strategic risks
A review of strategic risks is part of the
Group’s strategic planning process.
A risk is defined as strategic where, if
realized, it may have long-term effects
on business.
Business environment risks
The company operates worldwide
and business cycles and megatrends
in the global economy directly impact
the company’s operating conditions.
Demand for the company's products
is influenced by global, regional and
national macroeconomic conditions,
which affect the end users of its prod-
ucts. As a result, Glaston is exposed to
business cycles in its customers’ indus-
tries, such as the construction, mobility,
display and solar panel industries.
Currently, business operations
globally are impacted by continued
inflationary pressure, tighter monetary
policies, increasing geopolitical risks
and uncertain growth expectations
in China. These are all contributing
to a slowdown in global economic
growth,and investment activity, and
therefore pose a risk to the compa-
ny's operations and profitability. Given
the uncertainties of the real estate
market in China, special focus is put
on the company’s strategy in China
and Glaston is actively developing its
offering and competitiveness in the
Chinese markets.
The general increase in uncertainty
may reduce customers’ willingness to
invest and thereby negatively impact
Glaston’s order intake, net sales and
earnings.
Declined economic and investment
activity has affected building industry
development, which is an important
driver, particularly for flat tempering
and flat laminating products. 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
architectural safety glass and mobility
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 mobility indus-
try customers. Long-term disruption
and structural changes in the market
could impact demand for the Group’s
mobility glass processing machines.
Increasing mobility glass requirements
present new challenges for glass pro-
cessing, bringing new players to the
market and creating new opportuni-
ties for glass processing technology
suppliers. From a technical perspec-
tive, environmental requirements will
be met through, among other things,
the use of lighter vehicle structures,
on which thin glass, in particular, will
have a positive impact.
In addition to sales of new
machines, the company is focusing on
increasing its services business, with
the aim of partially balancing its cycli-
cally sensitive business and improving
its profitability. However, the growth in
the Services business has not been at
the level Glaston expected due to the
above described lower overall activity
in the markets. Therefore, Glaston is
constantly evaluating opportunities
to maximize service revenue e.g.
through active installed base man-
agement.
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
also with its customers’ operations.
The intensification of competition may
lead to a deterioration of order intake,
project margins or terms of payment,
thereby adversely impacting Glaston’s
business. Existing or new 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, 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.
Glaston’s strategy identifies
opportunities for the company to
strengthen its market position and
cost competitiveness as well as seek
growth by developing its product
Glaston Annual Review 2023 88
Glaston 2023
Sustainability
Governance
Financial Review
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’s architectural market. In 2023,
ramping up the capabilities for pro-
duction of automotive glass preproc-
essing equipment at Glaston's factory
in China was completed in line with
plans.
Technology and IPR risks
One of Glaston’s most significant stra-
tegic risks is technology risk, i.e. the
entry into the market by a competing
machine or glass processing technol-
ogy, which would result in a reduction
of Glaston’s market shares and require
the company to make considerable
investments in product develop-
ment. This risk could also be realized
if Glaston’s technology would infringe
third-party rights.
Corporate responsibility and climate
change risks
Glaston has assessed its corporate
responsibility risks, including risks
related to climate change, in both its
strategic and operational risk assess-
ments. The risks were not found to
be significant, however. The potential
risks associated with responsibility, cli-
mate change and Glaston’s products
include regulatory changes, environ-
mental 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
stringent environmental requirements,
for example through the insulating
glass and solar panel glass processing
technologies offered by the company.
In addition, a key focus of Glaston’s
product development work is the
energy-efficiency of products, and
consequently customers can process
their glass with lower electricity con-
sumption 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.
Glaston recognizes that there are
potential sustainability and reputa-
tional risks primarily related to the
working conditions in the supply chain
such as wages, working hours and
safety. Glaston’s expectations of their
suppliers are defined in the compa-
ny’s Supplier Code of Conduct and a
commitment to the Supplier Code of
Conduct is required.
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 and takes the necessary pre-
ventive measures for its production
facilities and their machinery and
equipment.
Compliance and corruption risk
Glaston recognizes the risk of becom-
ing the target of third-party fraud as
well as the possibility of corruption
and fraud in the company’s operating
areas. Glaston’s operations are guided
by its Code of Conduct approved by
the company’s Board of Directors.
The company always adheres to
high ethical operating principles and
requires strict compliance with its
anti-corruption procedures. The Code
of Conduct describes the compa-
ny’s requirements and expectations
regarding responsible and ethical
conduct. In addition, the Code of
Conduct guides Glaston’s employees
in their daily work with colleagues,
customers, suppliers and other stake-
holders. The topics covered include
workplace conduct and responsible
business practices as well as the
environment and sustainable develop-
ment. All personnel are trained in the
Code of Conduct.
In order to focus particular atten-
tion on risks related to bribery and
corruption, the Code of Conduct is
complemented by the Anti-bribery
and anti-corruption policy approved
by the Board of Directors. The purpose
of this policy is to increase Glaston
employees’ awareness of the risk of
corrupt payments, to unequivocally
prohibit the payment and receipt of
bribes, and to ensure that the com-
pany conducts business honestly, in
accordance with ethical standards
and in compliance with anti-corrup-
tion laws, rules and regulations. Local
guidelines supplement the Group-
level guidelines.
Glaston has a whistleblowing
channel, which allows for anonymous
reporting for both internal and exter-
nal stakeholders on any suspected
violations of the Code of Conduct and
other guidelines.
Glaston Annual Review 2023 89
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Financial Review
Operational risks
Operational risk management forms
part of the daily work of business
areas. Opportunities and risks are
identified, assessed and managed on
a daily basis.
Glaston’s most significant opera-
tional risks include management and
possible quality problems related to
demanding customer projects, avail-
ability of components, management
of the contractual partner and sub-
contractor network, product devel-
opment, succeeding in the protection
and efficient production of intellectual
property rights as well as the availabil-
ity and permanence of expert per-
sonnel. In some cases, the possible
failure of even a single project may
have significant financial implications
if its size or contractual terms and
conditions are exceptional.
Disruptions in supply chains
The supply chain disruptions continued
in 2023, although with a clearly dimin-
ishing impact. Even though the supply
chain situation improved, except for
some electrical and control compo-
nents, Glaston continues to actively
mitigate the risks related to raw materi-
als and component prices and availabil-
ity. Major supply chain disruptions may
impact the company’s performance.
Data and cyber security risks
Glaston continually develops its infor-
mation systems and, despite care-
ful planning, temporary disruptions
to operations might be associated
with the introduction stages of new
systems. Because of the industrial
internet and general development in
the field of information systems, the
significance of cyber security risks
has increased, and the management
of such risks is subject to particu-
lar attention. Severe cyber security
attacks may impact the company’s
ability to conduct its business oper-
ations without interruptions. The
company’s IT Security Policy lists the
targets and principles and defines
the responsibilities with respect to
IT security. The IT Security Policy is
reviewed and audited regularly.
Other operational risks
The successful growth of the Group’s
operations requires successful man-
agement and the controlled growth
of resources. In addition, digitaliza-
tion is bringing new requirements for
technological and business manage-
ment expertise. The Group’s ability to
attract talent and maintain a high level
of job satisfaction among its employ-
ees is further emphasized.
Glaston’s balance sheet contains
a substantial amount of goodwill. A
prolonged period of low demand may
lead to a situation in which Glaston’s
recoverable amounts are insufficient
to cover the carrying amounts of
asset items, particularly goodwill. If
this happens, it will be necessary to
recognize an impairment loss, which,
when implemented, will weaken the
result and equity.
Financial risks
The Group’s most significant financial
risks are foreign exchange, credit,
interest rate and refinancing risks.
Financial risks and their management
are described in the section Manage-
ment of Financial Risks of the Annual
Review.
The Group’s risk management pro-
cesses are described in the Corpora-
tion Governance Statement.
Corporate Governance
Statement
Glaston has published a separate
Corporate governance statement for
2023 that complies with the recom-
mendations of the Finnish Corporate
Governance Code for listed compa-
nies. The statement is available on the
company’s website.
Short-term risks and business
uncertainties
The ongoing uncertainty in the global
business environment with its impact
on the Architectural market contin-
ues to constitute the main short-term
risk for Glaston. Demand for Glaston’s
products in the Architecture Busi-
ness Area is impacted by the general
economic cycles, and especially the
level of activity within the construction
industry. The construction market is
expected to develop unevenly. The
cautious development is predicted
to continue in Europe and China, and
Glaston pays particular attention to
the development of the construc-
tion market in China. In the Americas,
and particularly in North America, the
prospects are better.
Internationally, businesses are being
impacted by the increased inflationary
pressure. The tightening of mone-
tary policy by central banks to tackle
inflation has led to higher financing
costs for investments, thereby leading
to increased consideration for new
investments or operating cost savings.
Due to increasing market uncertainty
and higher financing costs, custom-
ers may also wish to postpone or
cancel their orders. Furthermore, the
softening market conditions could
adversely affect customers’ payment
Glaston Annual Review 2023 90
Glaston 2023
Sustainability
Governance
Financial Review
capabilities. Political risks and uncer-
tainties have increased and could lead
to polarization and unexpected trade
restrictions, thereby representing a
risk to Glaston’s business.
Glaston continuously monitors the
development outlook of the global
economy and its impact on the pro-
gress of its markets, with short-term
risks mainly linked to the development
of global investment demand. If the
demand environment deteriorates
substantially, this would mainly affect
Glaston’s net sales and earnings in
the machines businesses with a delay
of six to nine months. Any material
slowdown in the demand for services
would have a faster impact. Tighter
availability and the higher cost of
financing may also increase custom-
er-related credit risks.
To accelerate the strategy execu-
tion, Glaston’s new organization came
into effect on October 1, 2023. Despite
close follow-up and monitoring, there
could be a risk of not being able to
harness the planned financial and
strategy execution benefits. Leader-
ship and change management are
key in mitigating the risk.
Major supply chain disruptions may
impact the company’s performance as
component scarcity may cause reve-
nue recognition delays, whereas heavily
increasing prices of raw materials may
add to short-term profitability pressure.
Glaston delivers projects, which
involve risks related to engineering,
project execution, and installation.
A failure to plan or manage these
projects could lead to higher-than-es-
timated costs, revenue recognition
delays or disputes with customers.
Labor shortages and rising
employee turnover are concerns
in the market. Glaston’s ability to
maintain a high level of job satisfac-
tion among its employees and also
to attract new employees is further
emphasized.
Events after the reporting period
On January 19, 2024, the Proposals
of Glaston Corporation’s Sharehold-
ers’ Nomination Board to the Annual
General Meeting 2024 were disclosed.
The Nominations Board proposes that
the current members of the Board
of Directors Veli-Matti Reinikkala,
Sebastian Bondestam, Antti Kau-
nonen, Sarlotta Narjus, Arja Talma, Tero
Telaranta and Michael Willome shall be
re-elected as Members of the Board
of Directors. Furthermore, the Nomi-
nation Board proposes that the annual
remuneration of the Members of the
Board of Directors be as follows
(current remuneration in brack-
ets): Chair of the Board EUR 74,000
(70,000), Deputy Chair of the Board
EUR 45,000 (43,000) and other
Members of the Board EUR 35,000
(33,000). More information is available
in the Stock Exchange release pub-
lished on January 19, 2024.
On February 15, 2024, Glaston
informed that the company’s Board
of Directors had approved partially
revised strategic targets. Due to the
significant changes in the global
economy and Glaston’s addressable
markets started to soften in 2023,
the time for reaching the strategic
targets has been modified to reflect
the current expectations. Glaston has
adjusted the timeframe for achieving
the strategic targets from 2025 to the
medium term (3−5 years) except for
the emissions reduction targets with a
timeframe up to 2032.
For net sales and comparable return
on capital employed, the targets are
slightly adjusted. Glaston expects
annual average net sales to exceed
the addressable equipment market
growth and the comparable return on
capital employed (ROCE) to be above
16%. The target for comparable oper-
ating margin (EBITA) of 10% remains
unchanged. Additional information is
available in the stock exchange release
dated February 15, 2024.
Glaston’s outlook for 2024
Amid early signs of increasing market
activity, Glaston expects the architec-
tural glass processing equipment mar-
kets to start recovering slowly at some
point in 2024. In Europe, demand is
expected to remain at the current level
with the recovery taking place towards
the end of the year. In the Americas,
the current demand level is expected
to continue. In China, demand in the
Architectural market is expected to
remain at a reasonable level. In the
mobility glass processing equip-
ment market, the cautiously positive
development is expected to continue
driven by China. With global economic
uncertainty and geopolitical tensions
continuing, higher-than-normal uncer-
tainty exists in relation to customers’
decision-making.
Glaston starts the year with a lower
order backlog than the previous
year. However, given the expected
improving market activity during the
year, Glaston Corporation estimates
that its net sales and comparable
EBITA will stay at the same level or
increase slightly in 2024 from the lev-
els reported for 2023. In 2023, Group
net sales totaled EUR 219.7 million
and comparable EBITA was EUR 14.9
million.
Glaston Annual Review 2023 91
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Board of Directors’ proposal on
the distribution of profits
The distributable funds of Glas-
ton Corporation are EUR 59,814,764
of which EUR 2,071,515 represents
the profit for the financial year. The
company has no funds available for
dividend distribution.
The Board of Directors proposes
to the Annual General Meeting to be
held on 9 April 2024 that the profit for
the financial year 2023 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 2023,
a return of capital of a total of EUR
4,201,996 be distributed., i.e. EUR 0.05
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, 11 April 2024. The
Board of Directors proposes to the
Annual General Meeting that the
return of capital be paid on 25 April
2024.
The number of shares entitled to
a return of capital on the date of the
proposal on the distribution of profits
is 84,039,911 corresponding to a total
return of capital of EUR 4,201,996. EUR
55,612,769 will be left in distributable
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, February 14, 2024
Glaston Corporation
Board of Directors
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Per Share Data
2023 2022 2021
Earnings per share, EUR 0.060 0.037 0.013
Comparable earnings per share 0.104 0.074 0.051
Return of capital per share, EUR
(1
0.05 0.04 0.03
Return of capital ratio, %
(1
83.5% 109.1% 227.6%
Return of capital yield
(1
6.8% 4.4% 2.6%
Return of capital , EUR million
(1
4.2 3.4 2.5
Adjusted equity attributable to owners
of the parent per share, EUR 0.82 0.81 0.81
Price per earnings per share (P/E) ratio 12.3 24.6 86.5
Price per equity attributable to owners
of the parent per share 0.89 1.11 1.41
Number of shares at the end of the year 84,289,911 84,289,911 84,289,911
Number of shares at the end of the year,
excluding treasury shares 84,039,911 84,289,911 84,289,911
Number of shares, average, excluding
treasury shares 84,217,969 84,289,911 84,289,911
2023 2022 2021
Share price and turnover
Share price, year high, EUR 1.09 1.19 1.40
Share price, year low, EUR 0.73 0.71 0.72
Share price, volume-weighted
year average, EUR 0.89 0.95 0.98
Share price, end of year, EUR 0.74 0.90 1.14
Number of shares traded (1.000) 7,180 8,153 20,577
% of average number of registered shares 8.5% 9.7% 24.4%
Market capitalization of registered
shares, end of year, treasury shares
excluded, EUR million 61.9 76.0 96.1
(1
year 2023; Board of Directors' proposal to 2024 Annual General Meeting
Glaston Annual Review 2023 93
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Financial Ratios
EUR thousand 2023 2022 2021
Income statement and profitability
Net sales 219,708 213,520 182,662
Operating result 8,144 7,640 5,105
% of net sales 3.7% 3.6% 2.8%
Comparable operating result (EBIT) 11,418 9,917 6,569
% of net sales 5.2% 4.6% 3.6%
Comparable EBITA 14,869 13,624 11,098
% of net sales 6.8% 6.4% 6.1%
Financial income and expenses (net) -1,272 -2,899 -3,945
% of net sales -0.6% -1.4% -2.2%
Result before income taxes and non-
controlling interests 6,872 4,740 1,160
% of net sales 3.1% 2.2% 0.6%
Income taxes -1,830 -1,649 -49
Net profit / loss attributable to owners
of the parent 5,042 3,091 1,111
% of net sales 2.3% 1.4% 0.6%
Return on capital employed (ROCE), % 8.1% 6.9% 2.8%
Comprable return on capital employed
(Comparable ROCE), % 12.7% 10.5% 6.1%
Return on equity, % 7.3% 4.5% 1.6%
Gross capital expenditure 7,542 5,850 5,168
% of net sales 3.4% 2.7% 2.8%
Order book, EUR million 106.5 138.3 94.8
EUR million 2023 2022 2021
47,970 46,337 47,392
58,154 58,662 58,605
108,209 107,751 111,581
69,313 68,437 68,030
127,154 126,455 129,253
196,466 194,892 197,283
100,394 103,974 113,152
10,929 13,312 18,269
45.2% 44.0% 42.3%
44.8% 51.9% 66.3%
15.8% 19.5% 26.9%
804 775 731
Property, plant and equipment and
intangible assets
Goodwill
Non-current assets total
Equity attributable to owners of the parent
Liabilities
T
otal assets
Capital employed
Net interest-bearing debt
Equity ratio, %
Gearing, %
Net gearing, %
Personnel
Personnel, average
Personnel, at the end of the period 802 783 750
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EUR thousand 2023 2022 2021
Comparable operating result (EBIT) and EBITA
Operating result 8,144 7,640 5,105
Items affecting comparability 3,274 2,278 1,464
Comparable EBIT 11,417 9,917 6,569
Operating result 8,144 7,640 5,105
Amortization and purchase price allocation
(1
3,451 3,707 4,530
EBITA 11,595 11,346 9,634
Items affecting comparability
(1
3,274 2,278 1,464
Comparable EBITA 14,869 13,624 11,098
% of net sales 6.8% 6.4% 6.1%
(1
+ cost, - income
EUR thousand 2023 2022 2021
Comparable ROCE% and EPS
Profit/loss for the period before taxes 6,872 4,740 1,160
Financial expenses 1,401 2,742 2,184
Purchase price allocation 1,380 1,638 2,503
Items affecting comparability 3,274 2,278 1,464
Total 12,927 11,399 7,311
Equity 69,313 68,437 68,030
Interest bearing liabilities 31,082 35,536 45,121
Avg (1.1. and end of period) 102,184 108,562 119,007
Comparable ROCE% annualized 12.7% 10.5% 6.1%
Profit/loss for the period 5,042 3,091 1,111
Purchase price allocation 1,380 1,639 2,503
Items affecting comparability 3,274 2,278 1,464
Tax -931 -783 -793
Total 8,766 6,224 4,285
Number of shares, average 84,218 84,290 84,290
Comparable earnings per share 0.104 0.074 0.051
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
Average number of shares
Dividend per share*
Dividends paid
Number of issued shares at end of the period
Dividend payout ratio*
Dividend per share x 100
Earnings per share
Dividend yield per share*
Dividend per share x 100
Share price at end of the period
Equity attributable to owners of the parent per share
Equity attributable to owners of the parent at end of the period
Number of shares at end of the period
Average trading price
Shares traded (EUR)
Shares traded (volume)
Price per earnings per share (P/E)
Share price at end of the period
Earnings per share (EPS)
Price per equity attributable to owners of the parent per share
Share price at end of the period
Equity attributable to owners of the parent per share
Share turnover
The proportion of number of shares traded during the period to
weighted average number of shares
Market capitalization
Number of shares at end of the period x share price at end of the period
Number of shares at period end
Number of issued shares - treasury shares
* Definitions are also applied with return of capital
Financial ratios
EBITDA
Profit / loss before depreciation, amortization and impairment
Operating result (EBIT)
Profit / loss after depreciation, amortization and impairment
Cash and cash equivalents
Cash + other financial assets (includes cash and cash equivalents at
amortized cost)
Definitions of Key Ratios
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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, %
Net interest-bearing debt x 100
Equity (Equity attributable to owners of the parent + non-controlling interest)
Net gearing, %
Net interest-bearing debt x 100
Equity (Equity attributable to owners of the parent + non-controlling interest)
Return on capital employed, % (ROCE)
Profit / loss before taxes + financial expenses x 100
Equity + interest-bearing liabilities
(average of 1 January and end of the reporting period)
Return on equity, % (ROE)
Profit / loss for the reporting period x 100
Equity (Equity attributable to owners of the parent + non-controlling interest)
(average of 1 January and end of the reporting period)
Alternative performance measures
Comparable EBIT:
Operating result after depreciation, amortization and impairment, +/- items
affecting comparability + large, expensed cloud-computing investments.
Comparable EBITDA:
Operating result before amortization and impairment, +/- items affecting
comparability + large, expensed cloud-computing investments.
Comparable EBITA:
Operating result before amortization, impairment of intangible assets and
purchase price allocation +/- items affecting comparability + large, expensed
cloud-computing investments.
Comparable return on capital employed, % (Comparable ROCE):
(Profit / loss before taxes + amortization of purchase price allocations +/- items
affecting comparability + financial expenses x 100) / Equity + interest-bearing l
iabilities, average of 1 January and end of the reporting period.
Comparable earnings per share (Comparable EPS):
Net result attributable to owners of the parent +/- (items affecting comparability+
amortization of purchase price allocations) net of tax / Average number of shares.
Items affecting comparability:
Items affecting comparability are adjusted for non-business transactions or
changes in valuation items when they arise from restructuring, acquisitions and
disposals, related integration and separation costs, sale or impairment of assets.
These may include staff reductions, rationalization of the product range, restruc-
turing of the production structure, and reduction of premises. Impairment losses
on goodwill, gains or losses on disposals due to changes in the group structure,
exceptionally large gains or losses on tangible and intangible assets, exceptional
compensations for damages and legal proceedings are restated as an item
affecting comparability.
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Consolidated
financial statements
Consolidated statement of profit or loss ..............................99
Consolidated statement of
comprehensive income ................................................................100
Consolidated statement of financial position ..................101
Consolidated statement of changes in equity ............... 102
Consolidated statement of cash flows ................................ 104
Supplemental information for statement of
cash flows ............................................................................................... 105
Notes to the consolidated financial statements ............ 106
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Consolidated statement of profit or loss
1 January—31 December
EUR thousand Note 2023 2022
Net sales 2.2. 219,708 213,520
Other operating income 2.3. 2,488 3,583
Changes in inventories of finished goods and
work in progress 2.4. 1,599 1,016
Own work capitalized 604 606
Materials 2.4. -94,917 -97,926
Personnel expenses 2.5. -69,159 -65,357
Other operating expenses 2.4. -44,591 -40,120
Depreciation, amortization and impairment 3.4. -7,589 -7,681
Operating result 8,144 7,640
Financial income 2.8. 378 124
Financial expenses 2.8. -1,649 -3,024
Financial items, net -1,272 -2,899
Result before income taxes 6,872 4,740
Income taxes 2.9. -1,830 -1,649
Profit for the period 5,042 3,091
Attributable to:
Owners of the parent 5,042 3,091
Non-controlling interest - -
Earnings per share (EPS), EUR, basic and diluted 2.10. 0.060 0.037
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 2023 2022
Profit for the period 5,042 3,091
Other comprehensive income that will be reclassified
subsequently to profit or loss:
Exchange differences on translating foreign operations -257 462
Cash flow hedges 343 726
Cash flow hedges, taxes -159 -65
Other comprehensive income that will not be reclassified
subsequently to profit or loss:
Actuarial gains and losses arising from defined benefit
plans -129 -2,083
Actuarial gains and losses arising from defined benefit
plans, taxes 28 445
Other comprehensive income for the reporting period -174 -515
Total comprehensive income for the reporting period 4,869 2,576
Attributable to:
Owners of the parent 4,869 2,576
Non-controlling interest - -
The main calculations presented by the Group must be read together with the relevant notes.
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Consolidated statement of financial position
at 31 December
EUR thousand Note 2023 2022
Assets
Non-current assets
Goodwill 3.1., 3.4. 58,154 58,662
Intangible assets 3.1. 18,906 17,473
Property, plant and equipment 3.2. 23,208 22,620
Right-of-use assets 3.3. 5,856 6,245
Financial assets measured at fair value
through other comprehensive income 5.5. 8 8
Loan and other non-current receivables 4.2. 492 605
Deferred tax assets 2.9. 1,585 2,139
Total non-current assets 108,209 107,751
Current assets
Inventories 4.1. 35,827 31,959
Trade and other receivables 4.2. 18,579 23,958
Contract assets 2.2. 13,699 9,000
Cash equivalents 5.2. 20,153 22,224
Total current assets 88,258 87,141
Total assets 196,466 194,892
at 31 December
EUR thousand Note 2023 2022
Equity and liabilities
Equity
Share capital 5.3. 12,696 12,696
Other restricted equity reserves 5.3. 71 75
Reserve for invested unrestricted equity 5.3. 101,962 105,334
Treasury shares 5.3. -203 -
Other unrestricted equity reserves 5.3. 505 373
Retained earnings 5.3. -50,453 -55,032
Exchange difference 5.3. 4,735 4,992
Total equity 69,313 68,437
Non-current liabilities
Non-current interest-bearing liabilities 5.6. 19,930 23,931
Non-current lease liabilities 5.6. 5,147 5,863
Non-current provisions 4.4. 368 427
Deferred tax liabilities 2.9. 9,557 9,096
Total non-current liabilities 35,002 39,317
Current liabilities
Current interest-bearing liabilities 5.6. 4,039 4,039
Current lease liabilities 5.6. 1,966 1,703
Current provisions 4.4. 3,496 3,196
Trade and other current interest-free
payables 4.3. 81,220 73,137
Contract liabilities 2.2. 424 3,936
Liabilities for current tax 2.9. 1,007 1,126
Total current liabilities 92,152 87,138
Total liabilities 127,154 126,455
Total equity and liabilities 196,466 194,892
The main calculations presented by the Group must be read together with the relevant notes.
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Equity 1 January 12,696 75 105,334 - 373 -55,032 4,992 68,437
Profit for the period - - - - - 5,042 - 5,042
Other comprehensive income
Total exchange differences on
translating foreign operations - - - - - - -257 -257
Actuarial gains and losses arising from
defined benefit plans - - - - - -129 - -129
Taxes on actuarial gains and losses
arising from defined benefit plans - - - - - 28 - 28
Cash flow hedges - - - - 343 - - 343
Taxes on cash flow hedges - - - - -159 - - -159
Total other comprehensive income - - - - 184 -101 -257 -174
Total comprehensive income for the
period - - - - 184 4,942 -257 4,869
Acquisition of treasury shares - - - -203 - - - -203
Share-based incentive plan - - - - - -182 - -182
Taxes on share-based incentive plan - - - - - 36 - 36
Capital distribution - - -3,372 - - - - -3,372
Total transactions with the owners of
the Company - - -3,372 -203 - -146 - -3,721
Other changes - -4 - - -53 -216 - -273
Equity 31 December 12,696 71 101,962 -203 505 -50,453 4,735 69,313
Consolidated statement of changes in equity
EUR thousand
2023 Share capital
Other
restricted
equity
reserves
Reserve for
invested
unrestricted
equity
Treasury
shares
Other
unrestricted
equity
reserves
Retained
earnings
Cumulative
exchange
difference Total equity
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
The main calculations presented by the Group must be read together with the relevant notes.
Equity 1 January 12,696 75 107,863 - -288 -56,846 4,530 68,030
Profit for the period - - - - - 3,091 - 3,091
Other comprehensive income
Total exchange differences on
translating foreign operations - - - - - - 462 462
Actuarial gains and losses arising from
defined benefit plans - - - - - -2,083 - -2,083
Taxes on actuarial gains and losses
arising from defined benefit plans - - - - - 445 - 445
Cash flow hedges - - - - 726 - - 726
Taxes on cash flow hedges - - - - -65 - - -65
Total other comprehensive income - - - - 661 -1,638 462 -515
Total comprehensive income for the
period - - - - 661 1,453 462 2,576
Acquisition of treasury shares - - - - - - - -
Share-based incentive plan - - - - - 185 - 185
Taxes on share-based incentive plan - - - - - -37 - -37
Capital distribution - - -2,529 - - - - -2,529
Total transactions with the owners of
the Company - - -2,529 - - 148 - -2,381
Other changes - - - - - 212 - 212
Equity 31 December 12,696 75 105,334 - 373 -55,032 4,992 68,437
EUR thousand
2022 Share capital
Other
restricted
equity
reserves
Reserve for
invested
unrestricted
equity
Treasury
shares
Other
unrestricted
equity
reserves
Retained
earnings
Cumulative
exchange
difference Total equity
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Consolidated statement of cash flows
1 January—
31 December
EUR thousand 2023 2022
5,042 3,091
8,852 10,191
355 121
-920 -445
66 -1,744
Cash flows from operating activities
Profit for the period
Adjustments
1)
Interest received
Interest paid
Other financing items
Income taxes paid
-1,140 -707
Cash flows from operating activities
before change in net working capital 12,255 10,508
Change in net working capital
Change in inventories -3,878 -4,405
Change in current receivables -227 -1,873
Change in interest-free current liabilities 5,608 5,930
Change in net working capital, total 1,502 -348
Cash flows from operating activities 13,757 10,160
Cash flows from investing activities
Other purchases of non-current assets -7,542 -5,850
Proceeds from sale of other non-current assets 220 362
Cash flows from investing activities -7,322 -5,487
Cash flow before financing 6,435 4,673
1 January—
31 December
EUR thousand 2023 2022
Cash flows from financing activities
Acquisiton of treasury shares -203 -
Draw-down of non-current loans - 24,000
Repayments of non-current loans - -31,000
Change in loan receivables (decrease +, increase -) - 309
Draw-down of current loans - 6,269
Repayments of current loans -4,039 -8,232
Capital distribution -3,372 -2,529
Cash flows from financing activities -7,614 -11,182
Effect of exchange rate fluctuations -892 1,882
Net increase (- decrease) in cash and cash equivalents -2,071 -4,628
Cash and cash equivalents at beginning of period 22,224 26,852
Cash and cash equivalents at end of period 20,153 22,224
Net increase (- decrease) in cash and cash equivalents -2,071 -4,628
1)
Cash flow supplemental information
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 DecemberEUR thousand 2023 2022Cash and bank 20,153 22,224Total cash and cash equivalents 20,153 22,224Cash flows from operating activitiesAdjustments Depreciation, amortization and impairments 7,589 7,681Changes of provision 240 845Financing items 1,272 2,899Taxes 1,830 1,649Others -2,079 -2,883Adjustments Total 8,852 10,191Total cash outflow on lease liablities in cash flow from operating activities -3,974 -3,563
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1. General accounting policies
Consolidated financial statements
1.1. Basic information
Glaston Corporation is a public limited
liability company organized under the
laws of the Republic of Finland and
domiciled in Helsinki, Finland. Glaston’s
shares are publicly traded in Nasdaq
Helsinki Ltd. Small Cap in Helsinki, Fin-
land. Glaston Corporation is the parent
of Glaston Group and its registered
office is at Lönnrotinkatu 11, 00120
Helsinki, Finland.
Glaston Group is an international
glass technology company. Glaston is
one of the leading manufacturers of
glass processing machines globally.
Its product range and service network
are the most extensive in the indus-
try. From 1 October, the operations of
Glaston Group are organized in two
reportable segments which consists
of operating segments.
The Board of Directors of Glaston
Corporation has in its meeting on
14 February 2024 approved these
financial statements to be published.
According to the Finnish Companies’
Act, the shareholders have a possi-
bility to approve or reject or make
a decision on altering the financial
statements in a General Meeting to
be held after the publication of the
financial statements.
1.2. Basis of preparation
The financial statements have been
prepared on a going concern basis.
The consolidated financial state-
ments of Glaston Group are prepared
in accordance with International
Financial Reporting Standards (IFRS),
including International Accounting
Standards (IAS) and Interpretations
issued by the International Financial
Reporting Interpretations Committee
(SIC and IFRIC). International Financial
Reporting Standards are standards
and their interpretations adopted in
accordance with the procedure laid
down in regulation (EC) No 1606/2002
of the European Parliament and of the
Council. The Notes to the Financial
Statements are also in accordance
with the Finnish Accounting Act and
Ordinance and the Finnish Compa-
nies' Act.
The consolidated financial state-
ments include the financial state-
ments of Glaston Corporation and
its subsidiaries. The functional and
reporting currency of the parent
is euro, which is also the reporting
currency of the consolidated financial
statements. Functional currencies of
subsidiaries are determined by the
primary economic environment in
which they operate.
The financial year of Glaston Group
as well as of the parent and subsid-
iaries is the calendar year ending 31
December.
The financial statements have been
prepared under the historical cost
convention except as disclosed in the
accounting policies below.
The figures in Glaston's consoli-
dated financial statements are mainly
presented in EUR thousands. Due
to rounding differences the figures
presented in tables do not necessarily
add up to the totals of the tables.
1.3. Consolidation principles
The consolidated financial statements
include the parent and its 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. The
group has control over a company
if, by being part of it, it is exposed to
its variable return or is entitled to its
variable return and it is able to influ-
ence this return by using its power
over the company. In the fiscal year
2023, EAI Hedging 3 Oy has been
established, which, financed by Glas-
ton, will acquire shares in accordance
with the agreement in accordance
with the provisions of the Limited
Liability Companies Act regarding the
financing of the acquisition of own
shares. These shares are used as part
of Glaston's share-based incentive
scheme in accordance with its terms.
The legal ownership of the holding
company is with Evli Alexander Incen-
tives Oy, but based on the agreement,
Glaston actually exercises control
over the arrangement and acts as the
principal, while EAI acts as an agent
through the holding company. This
control arising from contractual fea-
tures leads to the fact that the holding
company is combined with the IFRS
consolidated financial statements as a
so-called as a structured community.
Divested subsidiaries are included in
the consolidated financial statements
until the control is lost, and companies
acquired during the reporting period
are included from the date when
the control has been transferred to
Glaston. Acquisitions of subsidiaries
are accounted for under the purchase
method.
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Other shares, i.e. shares in com-
panies in which Glaston owns less
than 20 percent of voting rights, are
classified as assets recognized at fair
value through other comprehensive
income, or if the fair value cannot be
measured reliably, at acquisition cost,
and dividends received from them are
recognized in profit or loss.
All inter-company transactions are
eliminated as part of the consolidation
process. Unrealized gains arising from
transactions with associates are elim-
inated to the extent of the Group’s
interest in the entity. Unrealized losses
are eliminated in the similar way as
unrealized gains, but only to the extent
that there is no evidence of impair-
ment.
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.
1.4. Estimates and
assessments by
Management
The preparation of financial state-
ments in conformity with IFRS requires
management to make estimates and
assumptions that affect the reported
amounts of assets and liabilities, the
disclosure of contingent assets and
liabilities at the end of the reporting
period and the recognized amounts
of revenues and expenses during the
reporting period. Actual results may
differ from these estimates.
In addition, management uses
judgment in applying the accounting
principles and in choosing the appli-
cable accounting policies, if IFRS allow
alternative methods.
The following items include critical
accounting estimates: impairment
testing of assets; estimated fair values
of property, plant and equipment and
intangible assets acquired in an acqui-
sition and their estimated useful lives;
useful lives of other intangible assets
and property, plant and equipment;
future economic benefits arising
from capitalized development cost;
measurement of inventories and trade
and loan receivables; recognition and
measurement of deferred taxes; esti-
mates of the amount and probability
of provisions and actuarial assump-
tions used in defined benefit plans.
The critical accounting estimates
and judgments are described in more
detail in the notes.
1.5. Applied New and
Amended IFRS Standards
and IFRIC 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 addition to the standards and
interpretations presented in the
financial statements for 2023, the
Group will adopt IFRS standards, IFRIC
interpretations and changes to exist-
ing standards and interpretations that
enter into effect in 2024. These are not
estimated to have a material effect
on Glaston's consolidated financial
statements.
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2. Group performance
2.1. Reporting segments .............................................................109
2.2. Revenue from contracts with customer ....................113
2.3. Other operating income ......................................................116
2.4. Materials and other operating expenses....................117
2.5. Employee benefits and number of personnel ...... 118
2.6. Share-based incentive plans ............................................119
2.7. Pensions benefits .....................................................................122
2.8. Financial income and expenses......................................125
2.9. Income taxes .............................................................................. 126
2.10. Earnings per share ....................................................................131
Consolidated financial statements
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Consolidated financial statements / 2. Group performance / 2.1. Reporting segments
Accounting policy
Glaston’s new company structure came into effect on October 1, 2023 and in the
new structure Glaston has two Business Areas (BA): Architecture and Mobility, Display
& Solar which are the same as the operating segments and the reporting segments.
As to taxonomy alignment, Glaston has conducted an analysis of its operations and
concluded that the Insulating Glass technologies and related services included
in the Architecture segment, as well as all equipment and services to solar energy
technology providers included in the Mobility, Dispaly and Solar segment, are ena-
bling activities that substantially contribute to climate change mitigation. Glaston’s
Insulating Glass technologies, machines, manufacturing lines, upgrade options and
services that enable manufacturing of insulating glass unit systems are taxonomy
aligned activities, conforming with the definition and fulfilling the internationally
standardized requirements and essential characteristics of insulating glass units. Fur-
ther, hand-operated or power-driven lifting, handling, loading or unloading machin-
ery, edge working machines and equipment are considered not to be taxonomy
aligned activities when not installed as a part of an existing or new insulating glass
manufacturing lines. More information about sustainability at Glaston in available
in Glaston's Annual Review and in the Board of Director's Non-Financial Information
(NFI) report.
Segment assets include external trade receivables, fixed assets and inventory.
Segment liabilities include external trade payables and advance payments received.
In addition, segment assets and liabilities include business related prepayments and
accruals as well as other business related receivables and liabilities. Segment assets
and liabilities do not include loan receivables, prepayments and receivables related
to financial items, interest-bearing liabilities, accruals and liabilities related to financial
items, income and deferred tax assets and liabilities nor cash and cash equivalents.
2.1. Reporting segments
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EUR thousand Mobility, 2023 ArchitectureDisplay & Solar Total segments Unallocated Total segmentsExternal net sales 175,119 43,577 218,696 1,012 219,708 Internal net sales 0 26 26 -26 - Total net sales 175,119 43,603 218,721 986 219,708 Operating result 10,363 -2,481 7,882 261 8,144 Financial items - - - -1,272 -1,272 Income taxes - - - -1,830 -1,830 Result for the reporting period 10,363 -2,481 7,882 -2,840 5,042 Segment assets 139,222 34,371 173,593 - 173,593 of which investments 5,577 1,965 7,542 - 7,542 Other assets - - - 22,874 22,874 Total assets 139,222 34,371 173,593 22,874 196,466 Segment liabilities 72,449 12,564 85,012 - 85,012 Other liabilities - - - 42,141 42,141 Total liabilities 72,449 12,564 85,012 42,141 127,154 Operative net working capital 30,621 24,855 55,476 294 55,770
Reporting segments
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EUR thousand Mobility, 2022 ArchitectureDisplay & Solar Total segments Unallocated Total segmentsExternal net sales 169,463 43,142 212,605 915 213,520 Internal net sales 13 0 13 -13 - Total net sales 169,476 43,142 212,619 902 213,520 Operating result 7,231 259 7,491 149 7,640 Financial items - - - -2,899 -2,899 Income taxes - - - -1,649 -1,649 Result for the reporting period 7,231 259 7,491 -4,400 3,091 Segment assets 136,812 32,780 169,592 - 169,592 of which investments 4,284 1,566 5,850 - 5,850 Other assets - - - 25,301 25,301 Total assets 136,812 32,780 169,592 25,301 194,892 Segment liabilities 68,593 11,960 80,554 - 80,554 Other liabilities - - - 45,901 45,901 Total liabilities 68,593 11,960 80,554 45,901 126,455 Operative net working capital 8,079 22,250 30,329 198 30,528
Non-cash income and expenses included in operating result
2023 2022Segment total -567 1,142 Total non-cash expenses and income -567 1,142
Non-cash income and expenses in
2023 included the following items:
impairment losses of trade receiv-
ables EUR -1.0 million, impairment
losses of inventory EUR 0.2 million,
changes in provisions EUR 0.3 million.
Non-cash income and expenses
in 2022 included the following items:
impairment losses of trade receiva-
bles EUR 0.1 million, impairment losses
of inventory EUR 0.2 million, changes
in provisions EUR 0.8 million.
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Personnel Entity-wide disclosures
Number of personnel at the end of the year by segment 2023 2022Architecture 630 624Mobility, Display & Solar 171 157Total Segments 801 781Unallocated 1 2Total Glaston Group 802 783
Net sales by product groups 2023 2022Goods sold 209,383 204,534 Services rendered 10,325 8,986 Total 219,708 213,520
Net sales by country by destination 2023 2022Finland 8,695 5,326 Other EMEA* 104,724 106,895 Americas* 72,412 60,861 APAC* 33,878 40,439 Total 219,708 213,520
Assets by country 2023 2022Finland 49,953 56,114 Other EMEA* 113,239 105,746 Americas* 13,253 13,832 APAC* 20,021 19,200 Total 196,466 194,892
Number of personnel at the end of the year by geographical location 2023 2022Finland 214 195 Other EMEA* 382 377 Americas* 48 50 APAC* 158 161 Total 802 783
*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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Consolidated financial statements / 2. Group performance / 2.2. Revenue from contracts with customer
2.2. Revenue from contracts with customer
Accounting policy
Net sales include the total invoicing value of products sold and services provided less
discounted interest and sales tax, cash discounts and rebates. Foreign exchange dif-
ferences arising from trade receivables are recognized as sales adjustments.
Revenue from the sale of goods is recognized at a specific date or within a certain
period, according to when the buyer receives the goods or gains control. Normally,
this takes place at the date of the delivery in accordance with the terms of delivery.
Revenue from services rendered and repair work is recognized when the service has
been rendered or the work has been completed. Revenue is recognized in an amount
that reflects the consideration to which the entity expects to be entitled in exchange
for goods delivered or services rendered.
In satisfying the terms of IFRS 15, Glaston recognizes the revenue from tailor-made
glass processing machine deliveries over time. As a revenue recognition practice,
Glaston applies the cost-to-cost method, i.e. the share of accumulated project costs
compared to total estimated costs is used as the degree of completion. Revenue rec-
ognition takes place over time, according to when costs accumulate and are recog-
nized for the project.
Contractual assets are recognized when project billing is lower than revenue rec-
ognized based on the progress of the project and, similarly, advances received and
contractual liabilities are recognized if project billing exceeds the revenue recognized
on the basis of the project.
Contractual liabilities are recognized as revenue as the project is completed. Pro-
jects subject to over time revenue recognition are, as a rule, completed in less than a
year from start-up.
Estimates and assessments by Management
In satisfying the terms of IFRS 15, Glaston recognizes the
revenue from tailor-made glass processing machine
deliveries over time. As a revenue recognition practice,
Glaston applies the cost-to-cost method, i.e. the share of
accumulated project costs compared to total estimated
costs is used as the degree of completion. Revenue
recognition takes place over time according to when
costs accumulate and are recognized for the project.
Costs attributable to a project for which revenue is not
yet recognized are included in inventories as construc-
tion contracts. Estimates are monitored and updated
monthly and changes in revenue recognition are rec-
ognized in the same month as a forecast is changed.
Forecasts are related to material and wage costs and to
project overheads, which may result in a risk of a greater
increase in a project’s overall costs than forecast. Other
risks related to the project and its profitability are unfore-
seen technical problems with supplied and installed
equipment, which may give rise to repair costs. If project
costs exceed the revenue of a project subject to over
time revenue recognition, the loss is recognized for the
period in which it is identified.
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Revenue from contracts with customer
Classification of net sales
EUR thousand
Mobility, Total 2023 ArchitectureDisplay & Solarsegment Unallocated Total External net sales 175,119 43,577 218,696 1,012 219,708 Internal net sales 0 26 26 -26 - Total net sales 175,119 43,603 218,721 986 219,708 Revenue recognitionOver time 127,793 20,534 148,326 - 148,326 At a point in time 47,326 23,069 70,395 986 71,382 Total net sales 175,119 43,603 218,721 986 219,708 Mobility, Total 2022 ArchitectureDisplay & Solarsegment Unallocated Total External net sales 169,463 43,142 212,605 915 213,520 Internal net sales 13 0 13 -13 - Total net sales 169,476 43,142 212,619 902 213,520 Revenue recognitionOver time 129,963 17,462 147,425 - 147,425 At a point in time 39,513 25,680 65,193 902 66,095 Total net sales 169,476 43,142 212,619 902 213,520
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Contract assets and liabilities
31.12.2023 31.12.2022Contract assets Trade receivables 7,568 6,459Project income receivables 79,721 49,897Contract assets total 87,288 56,356Contract liablities Advance payments -73,590 -47,356Project expense liablities -424 -3,936Contract liablities total -74,014 -51,292Gross contract assets/liabilities 13,275 5,06431.12.2023 31.12.2022Transaction price allocated to performance obligations that are partially or fully unsatisfied at the end of the reporting periodAllocated transaction price expected to be recognised as revenue 100,003 113,072
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Accounting policy
Government or other grants are recognized in profit or loss in the same
periods in which the corresponding expenses are incurred. Government
grants received to acquire property, plant and equipment are reduced
from the acquisition cost of the assets in question.
Consolidated financial statements / 2. Group performance / 2.3. Other operating income
2.3. Other operating income
Government grants
2023
Glaston Finland Oy was granted a total of EUR 268 thousand from Business Fin-
land's innovation finance.
2022
Glaston Finland Oy was granted a total of EUR 179 thousand from Business Fin-
land's innovation finance.
Glaston Management Shanghai Co. Ltd. was granted tax cost subsidy of EUR 3
thousand.
Glaston Tianjin Co. Ltd was granted a Covid cost subsidy of EUR 16 thousand.
Other operating income
EUR thousand 2023 2022Capital gains on sale of property, plant and equipment 54 20 Rents 1,021 1,038 Government grants 268 198 Insurance compensation 3 15 Legal compensation 249 1,229 Other income 894 1,083 Other operating income total 2,488 3,583
Glaston Annual Review 2023 116
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Consolidated financial statements / 2. Group performance / 2.4. Materials and other operating expenses
2.4. Materials and other operating expenses
EUR thousand 2023 2022Materials Materials and supplies, purchases during the period -97,236 -101,320Change in inventories of materials and supplies 2,319 3,393Total materials -94,917 -97,926Other operating expensesLeases -3,974 -3,563Losses on sale of property, plant and equipment -0 -33Subcontracting and maintenance -8,344 -5,603Commissions -1,860 -1,656Freight expenses -4,648 -6,700Travel expenses -7,082 -6,108External services, not production related -4,989 -4,175IT, internet and phone -7,789 -6,459Electricity, heating -1,077 -1,201Marketing expenses -821 -1,365Other expenses -4,008 -3,257Total other operating expenses -44,591 -40,120
EUR thousand 2023 2022Fees for professional services rendered by auditorsAuditor KPMGAuditing -327 -302Legal statements -10 -15Tax advisory -49 -83Other services - -12Total -386 -412
EUR thousand 2023 2022Research and development costsRecognized in profit or loss -5,429 -6,186Amortizationof capitalized development costs during the reporting period -1,475 -1,475Total -6,904 -7,662As a percentage of net sales 3.1% 3.6%Capitalized development costs during the reporting period 3,790 3,015
The auditor of Glaston Group during the financial years of 2023 and 2022 has been
KPMG. KPMG Oy Ab's fee from other than auditing was EUR 0 (12) thousand.
Fee to other audit companies was EUR 77 (59) thousand.
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Consolidated financial statements / 2. Group performance / 2.5. Employee benefits and number of personnel
2.5. Employee benefits and number of personnel
Information on the Group's excecutive management's employee benfits and
other related party transactions is presented in Note 7.1.
Share-based incentive plans are described in more detail in Note 2.6. to the
consolidated financial statements.
Pension benefits are presented in more detail in Note 2.7. to the consolidated
financial statements.
EUR thousand 2023 2022Employee benefitsWages and salaries 57,853 54,673 Pension expenses 5,090 4,506 Other personnel expenses 6,216 6,178 Total personnel expenses 69,159 65,357 Pension expensesDefined benefit plans 221 343 Defined contribution plans 4,869 4,163 Total pension expenses 5,090 4,506
2023 2022Number of personnelNumber of personnel, average 804 775 Personnel in Finland, end of the period 214 195Personnel outside Finland, end of the period 588 588 Personnel total, end of the period 802 783
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Consolidated financial statements / 2. Group performance / 2.6. Share-based incentive plans
2.6. Share-based incentive plans
Accounting policy
Glaston's share-based incentive plans are directed to the Group's key
personnel as part of the Group's incentive schemes.
The plans aim to align the interests of the company's shareholders
and key personnel in the Group in order to raise the value of Glaston.
The expenses arising from the equity-settled share-based payment
transactions have been recognized in profit or loss and in equity during
the vesting periods.
Equity-settled share-based payment transactions are valued at the
time of grant. Glaston has recorded the share-based incentive plans
as equity-settled share-based payment transactions. The fair value of
the part to be paid in shares is determined on the day the target group
has accepted the terms of the arrangement. The portion of the reward
paid in cash is revalued during the waiting period at each reporting time
based on the share's stock exchange price at the time of review.
Share-based incentive plans
In January 2022, the Board of Direc-
tors of Glaston Corporation resolved
on the share-based incentive plan
2022−2026 for the Group key employ-
ees in accordance with the terms and
conditions materially corresponding
to the terms and conditions of the
share-based incentive plan 2019−2023.
The aim of the incentive plan is to
align the objectives of the sharehold-
ers and the key employees in order
to increase the value of the company
in the long term, to retain the key
employees at the company, and to
offer them a competitive incentive
plan that is based on earning and
accumulating the company’s shares.
The Performance Share Plan
2022−2026 comprises three per-
formance periods, calendar years
2022−2024, 2023−2025, and 2024−2026.
From the Performance Share Plan
2019–2023 has been comprised two
performance periods. The Board of
Directors resolves on the plan’s per-
formance criteria and on the perfor-
mance levels at the beginning of each
performance period. The key employ-
ees will receive the company’s shares
as a reward, if the performance 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 employment or service
terminates before the reward pay-
ment.
The CEO and President and each
member of the Executive Leadership
Team 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
2023—2025
The potential reward of the per-
formance period 2023−2025 will be
based on the Glaston Group’s compa-
rable EBITA, Service Net Sales and EPS
during the period of 1 January 2023−31
December 2025. If the performance
levels of the performance criteria for
the performance period 2023−2025
are achieved in full, the payable
rewards correspond to a maximum
total of 516,000 Glaston Corporation
shares, including also the proportion
to be paid in cash.
The potential reward from the
performance period 2023−2025 will
be paid in 2026 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-
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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 16 key persons belong to
the target group of the plan in the
performance period 2023–2025.
Performance Period
2022—2024
The potential reward of the per-
formance period 2022−2024 will be
based on the Glaston Group’s com-
parable EBITA and Service Net Sales
during the period of 1 January 2022−31
December 2024. If the performance
levels of the performance criteria for
the performance period 2022−2024
are achieved in full, the payable
rewards correspond to a maximum
total of 416,800 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 13 key persons belong to
the target group of the plan in the
performance period 2022–2024.
Performance Period
2021—2023
The potential reward of the perfor-
mance period 2021–2023 was based
on the Glaston Group’s comparable
EBITA and Services Net Sales dur-
ing the period of 1 January 2021—31
December 2023. The performance
levels of the performance criteria for
the performance period 2021–2023
are achieved partly and the rewards
correspond to an approximate total of
193,697 Glaston Corporation shares,
including also the proportion to be
paid in cash.
The potential reward from the
performance period 2021–2023 will be
paid in 2024 partly in the company’s
shares and partly in cash, in which
case the cash proportion is intended
to cover taxes and tax-related costs
arising from the reward to the key
employee.
In total 13 key employees belong
to the target group of the plan in the
performance period 2021–2023.
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Basic information of the share-based plans 2023-2025 2022-2024 2021-2023Grant date 12 April 2023 27 January 2022 23 June 2021Nature of the plan Shares/cash Shares/cash Shares/cash Target group Key personnel Key personnel Key personnel Maximum amount of shares (including cash) 516,000 shares 416,800 shares 487,900 sharesTotal amount of shares at the end of the performance period - - approx. 193,697 shares(including cash)Performance period begins 1 January 2023 1 January 2022 1 January 2021Performance period ends 31 December 2025 31 December 2024 31 December 2023End of restriction period/ payment 1 April 2026 1 April 2025 1 April 2024Vesting conditions Group's comparable EBITA, Group's comparable EBITA Group's comparable EBITA Service Net Sales and EPSand Service Net Salesand Service Net Sales Service period Service period Service period Maximum contractual life, years 3 3 3Remaining contractual life, years 2 1 0Number of persons involved 31 December 2023 16 13 13
Effect on the profit or loss for the period and on financial position 2023 2022Effect on the result of the reporting period, EUR thousand 195 215
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Consolidated financial statements / 2. Group performance / 2.7. Pension benefits
2.7. Pension benefits
Estimates and assessments by Management
Calculation of defined benefit pensions and other defined long-term
employee benefits requires choosing certain assumptions which actu-
aries use in calculation of the obligations arising from defined benefit
plans. These assumptions include, among other things, discount rates
used in the measurement of plan assets and liabilities as well as other
actuarial assumptions such as future salary increases and mortality rate.
Accounting policy
The Group has various pension plans in accordance with the local prac-
tices in the countries where it operates. The pension plans are classified
as defined contribution plans or defined benefit plans. The payments to
the schemes are determined by actuarial calculations.
The contributions to defined contribution plans are charged to profit
or loss in the period to which the contributions relate.
The obligations for defined benefit plans have been calculated sepa-
rately 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 finan-
cial position.
The defined benefit obligation is measured as the present value of the
estimated future cash flows using interest rates of government securities
that have maturity terms approximating the terms of related liabilities or
similar long-term interests.
For the defined benefit plans, costs are assessed using the projected
unit credit method. Under this method the cost is charged to profit or
loss so as to spread over the service lives of employees.
According to the standard, Glaston records actuarial gains and losses,
return on plan assets excluding interest income and change in effect of
asset ceiling in other comprehensive income. Current and past service
costs, net interest on net defined benefit liability and interest expense
or income on effect of asset ceiling is recorded in profit or loss. Other
changes in net defined benefit liability are recognized in other compre-
hensive income with no subsequent recycling to profit or loss.
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1.1.2022 21,382 23,506 -2,124 Interest expense / income 92 100 -8 Current service cost 720 - 720 Past service cost -9 - -9 Employee contributions 544 544 - Employer contributions - 611 -611 Benefits paid 1,740 1,740 - OCI: Actuarial gains (-) / losses (+) -2,942 - -2,942 Other gains (-) / losses (+) on settelement 11 - 11 OCI:Return on plan assets (excluding amounts included in the net interest expense) - -4,275 4,275 31.12.2022 21,536 22,225 -689
1.1.2023 21,536 22,225 -689 Foreign exchange difference 1,365 1,409 -44 Interest expense / income 506 524 -17 Current service cost 556 - 556 Past service cost -19 - -19 Employee contributions 604 604 - Employer contributions - 677 -677 Benefits paid -927 -927 - OCI: Actuarial gains (-) / losses (+) 2,193 - 2,193 Other gains (-) / losses (+) on settlement 11 - 11 OCI: Return on plan assets (excluding amounts included in the net interest expense) - 2,486 -2,486 31.12.2023 25,826 26,998 -1,172
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 5.2 (4.4) million.
In addition to defined benefit pen-
sions, Glaston has no other long-term
defined employee benefits in 2023
and 2022.
EUR thousand 2023 2022Present value of funded obligations 25,826 21,536 Fair value of plan assets 26,998 22,225 Total deficit of defined benefit pension plans 1,172 689 Difference 1,172 689 Amounts in the statement of financial position1.1. Net liability (asset +) - 2,018 Liabilities - - Assets -1,172 -2,707 Adjustment to asset ceiling 1,172 689 31.12. Net liability (asset +) - -
EUR thousand
Present value
of obligation
Fair value
on plan assets Tota l
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 Tota l
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EUR thousand 2023 2022Cash and cash equivalents 810 667Equity instruments 9,449 7,779Debt instruments 8,639 7,112Real estate 6,750 5,556Other 1,350 1,111 Total plan assests 26,998 22,225
Changes in parameters (effect to obligation) 2023 2022Discount rate - 0.25% 26,692 22,245 Discount rate + 0.25% 25,017 20,869 Interest rate on retirement savings capital - 0.25% 25,513 21,275 Interest rate on retirement savings capital + 0.25% 26,147 21,803 Salary increase - 0.25% 25,729 21,451 Salary increase + 0.25% 25,923 21,616 Life expectancy + 1 year 26,239 21,859 Life expectancy - 1 year 25,408 21,208
Glaston Switzerland AG is affiliated
to the foundation “GEMINI Sammel-
stiftung, which pension foundation
is able to adapt the contribution and
benefits. In case of underfunding
there is a risk for the employer to be
involved in additional payments to the
foundation.
Actuarial assumptions20232022Defined pension plans Defined pension plansDiscount rate, % 1.95% 2.20%Future salary increase, % 1.00% 1.00%Duration in years 13.2 13.1
Plan asset classes
Sensitivity analysis, defined benefit obligation
The Group expects to contribute
EUR 704 thousand to its other long-
term employee benefit plans in 2024.
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Consolidated financial statements / 2. Group performance / 2.8. Financial income and expenses
2.8. Financial income and expenses
EUR thousand 2023 2022Interest incomeInterest income on deposits 378 121 Total interest income 378 121 Interest expensesInterest expenses on financial liabilities measured at amortized cost -1,341 -716 Interest expenses on lease liabilities -434 -438 Interest rate derivatives 220 - Other interest expenses -60 -1 Total interest expenses -1,614 -1,155 Other financial expensesOn financial liabilities measured at amortized cost - -730 On bank fees -225 -278 Currency derivatives forward points -1 -6 Guarantee expenses -89 -79 Impairment losses of loan receivables - 155 Other financial expenses -214 -207 Total other financial expenses -529 -1,145 Foreign exchange differences, netOn financial liabilities measured at amortized cost -1 0 On loans and receivables -132 -772 Other foreign exchange gains and losses 627 51 Total foreign exchange differences 494 -721 Total financial income and expenses in financial items -1,271 -2,899
EUR thousand 2023 2022Net foreign exchange differences in operating resultNet sales 655 -1,039 Purchases 216 113 Other operating expenses -8 -2 Total 863 -928 Derivatives recognized in profit or lossCurrency derivatives, hedge accountingRealized currency derivatives recognized in net sales -566 -1,457 Currency derivatives forward points -1 -6 Total -567 -1,463
Borrowing costs were not capitalized in Glaston Group in 2023 or 2022 as Glaston
has not had any qualifying assets as defined in IAS 23 Borrowing Costs.
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Consolidated financial statements / 2. Group performance / 2.9. Income taxes
Deferred tax liability has not been recognized in 2023 or 2022 of the undis-
tributed earnings of Finnish or foreign subsidiaries as the majority of such
earnings can be transferred to the owner without any tax consequences.
Principal temporary differences arise from depreciation and amortiza-
tion of property, plant and equipment and intangible assets, defined benefit
plans, recognition of net assets of acquired companies at fair value, through
other comprehensive income and derivative instruments at fair value,
inter-company inventory profits, share-based payments and confirmed
tax losses. Other temporary differences in deferred tax assets consist of
expenses which were not tax deductible in the reporting period, but will be
tax deductible in future. Other temporary differences in deferred tax liablities
consist of, among other things, differences between local and IFRS account-
ing principles, which create timing differences in recognizing revenue and
expenses.
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 liabil-
ities and assets.
Income taxes which relate to items recognized in other comprehensive
income are recognized in other comprehensive income.
The Group's deferred tax liabilities and assets have been calculated for
temporary differences, which have been obtained by comparing the carry-
ing amount of each asset or liability item with their tax bases. Deferred tax
assets are recognized for deductible temporary differences and tax losses to
the extent that it is probable that taxable profit will be available, against which
tax credits and deductible temporary differences can be utilized. In calculat-
ing deferred tax liabilities and assets, the tax rate used is the tax rate in force
at the time of preparing the financial statements or which has been enacted
by end of the reporting period.
Changes in tax rates have been taken into account when calculating
deferred taxes. The corporate tax rate in Finland is 20.0 percent.
Accounting policy
2.9. Income taxes
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Estimates and assessments by management
Recognition and measurement of deferred tax liabilities and assets
include management estimates, especially deferred tax assets arising
from confirmed tax losses of group companies or from other temporary
differences. Deferred tax assets are recognized for deductible tem-
porary differences and tax losses to the extent that it is probable that
taxable profit will be available against which tax credits and deductible
temporary differences can be utilized. All tax liabilities and assets are
reviewed at the end of the reporting period and changes are recognized
in profit or loss.
EUR thousand 2023 2022Income tax charge in income statementIncome tax of accounting period -1,221 -780Income tax of previous years 70 -257Deferred tax charge -671 -611Other -8 -2Total income tax charge -1,830 -1,649Income taxes recognized in other comprehensive income and in equityDeferred taxesShare-based incentive plan recognized in equity 36 -37Actuarial gains and losses arising from defined benefit plans 28 4 45 Cash flow hedge -159 -65Total taxes recognized in other comprehensive income and in equity -94 343
Income taxes
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EUR thousand 2023 2022Reconciliation of income tax expense calculated at statutory tax rates with income tax expense in the income statementProfit before taxes 6,872 4,740 Tax at the tax rate applicable to the parent -1,374 -948 Difference due to different tax rates of foreign subsidiaries -454 18 Tax exempt income and non-deductible expenses -219 -1,431 Losses, where no deferred tax benefit is recognized -645 -1,108 Deferred taxes recognized during the reporting period in respect of previous years' temporary differences 321 1,125 Withholding taxes and adjustments in respect of current income tax of previous periods -53 -254 Use of losses for which deferred tax has not been recognized 394 918 Deferred tax assets recognized in respect of confirmed losses in previous years 200 31 Income taxes in the income statement -1,830 -1,649 Effective tax rate 27% 35%
The Group companies have tax losses totalling EUR 34.1 (31.7) million, which can
be applied against future taxable income. A deferred tax asset has not been
recognized for all tax losses, due to the uncertainty regarding the extent to which
they can be used. Tax losses expire in the period 2024-2033. Some of the losses
do not have an expiration date. Over the next two years, the losses will expire by
approximately EUR 2.4 million.
EUR thousand 2023 2022Tax assets and tax liabilitiesDeferred tax assets 1,585 2,139 Assets for current tax - - Deferred tax liabilities 9,557 9,096 Liabilities for current tax 1,007 1,126
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Total change in deferred taxes in income statement (- tax expense) -671
Reconciliation of deferred tax assets and deferred tax liabilities 2023
Change Recognized in income in other Exchange Other statement Recognized comprehensive Deferred tax assets 1 Januarydifferencechanges(- tax expense)in equityincome 31 DecemberUnrealized internal profits, inventory 114 - - -6 - - 108 Confirmed tax losses carried forward 738 - - 675 - - 1,413 Share-based payments 6 - - - -36 - -31 Other temporary differences 1,281 -8 65 -1,245 - 2 95 Lease liabilities 1,575 - - -47 - - 1,528 Deferred tax netting -1,575 - - 47 - - -1,528 Deferred tax assets in statement of financial position 2,139 -8 65 -575 -36 2 1,586 Change Recognized in income in other Exchange Other statement Recognized comprehensive Deferred tax liabilities 1 Januarydifferencechanges(+ tax expense)in equityincome 31 DecemberUntaxed reserves 187 - -40 -3 - - 144 Defined benefit employee benefits 123 - - - -28 - 94 Fair value changes of financial assets -1 - - - - - -1 PPA allocation 4,207 - - -723 - - 3,484 Other temporary differences 4,854 183 93 810 - 157 6,097 Right of use assets 1,301 - - -35 - - 1,266 Deferred tax netting -1,575 - - 47 - - -1,528 Deferred tax liabilities in statement of financial position 9,096 183 53 96 -28 157 9,557
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Change Recognized in income in other Exchange Other statement Recognized comprehensive Deferred tax assets 1 Januarydifferencechanges(- tax expense)in equityincome 31 DecemberUnrealized internal profits, inventory 174 - - -60 - - 114 Confirmed tax losses carried forward 1,262 - - -524 - - 738 Share-based payments -31 - - - 37 - 6 Other temporary differences 1,239 35 - 36 - -29 1,281 Deferred tax assets in statement of financial position 2,643 35 - -548 37 -29 2,139 Change Recognized in income in other Exchange Other statement Recognized comprehensive Deferred tax liabilities 1 Januarydifferencechanges(+ tax expense)in equityincome 31 DecemberUntaxed reserves 161 - - 26 - - 187 Defined benefit employee benefits 567 - - - - -445 123 Fair value changes of financial assets -1 - - - - - -1 PPA allocation 5,371 - - -1,164 - - 4,207 Other temporary differences 3,165 121 - 1,201 - 94 4,581 Deferred tax liabilities in statement of financial position 9,263 121 - 63 - -351 9,096
Reconciliation of deferred tax assets and deferred tax liabilities 2022
Total change in deferred taxes in income statement (- tax expense) -611
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Consolidated financial statements / 2. Group performance / 2.10. Earnings per share
2.10. Earnings per share
Earnings per share
Basic earnings per share are calculated by dividing the net result
attributable to owners of the parent by the weighted share-issue
adjusted average number of shares outstanding during the year,
excluding shares acquired by the Group and held as treasury shares.
In calculating diluted earnings per share, the weighted average number
of shares takes into account the dilutive effect of the share-based com-
pensation plan.
Earnings per share
EUR thousand 2023 2022Net profit for the year attributable to owners of the parent 5,042 3,091 Number of shares Weighted average number of shares outstanding 84,217,969 84,289,911 Diluted weighted average number of shares outstanding 84,573,103 85,043,569 Earnings per share from net profit attributable to equity holders of the parent, EURBasic and diluted EPS, Group total 0.060 0.037
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3. Intangible assets and
property, plant and equipment
3.1. Goodwill and intangible assets ........................................133
3.2. Property, plant and equipment ...................................... 136
3.3. Right-of-use assets ................................................................ 139
3.4. Depreciation, amortization and
impairment of assets ..............................................................141
Consolidated financial statements
Glaston 2023
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Consolidated financial statements / 3. Intangible assets and property, plant and equipment / 3.1. Intangible assets
3.1. Goodwill and intangible assets
An 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. Intangible
assets are stated at cost and amortized on a straight line basis over their esti-
mated useful lives. Intangible assets with indefinite useful life are not amor-
tized, but tested annually for impairment. Glaston's intangible rights include
patents, trademarks, softwares.
The accounting for cloud computing arrangements depends on whether
the cloud-based software classifies as a software intangible asset or a
service contract. Those arrangements where the Company does not have
control over the underlying software are accounted for as service contracts
providing the Company with the right to access the cloud provider’s appli-
cation software over the contract period. The ongoing fees to obtain access
to the application software, together with related configuration or customi-
zation costs incurred, are recognised under Other operating expenses when
the services are received. Prepayments paid to the cloud vendor for custom-
izing services which are not distinct are recognized over the contract period.
Acquired intangible assets recognized as assets separately from goodwill
are recorded at fair value at the time of the acquisition of the subsidiary.
The estimated useful lives for intangible assets are as follows:
Accounting policy
Computer software, patents, licenses, trademarks,
product rights 3-10 years
Capitalized development expenditure 5-7 years
Other intangible assets 5-10 years
Research costs are expensed as incurred. Expenditure on development
activities, whereby research findings are applied to a plan or design for the
production of new or substantially improved products, is capitalized if the
product is technically and commercially feasible and the Group has sufficient
resources to complete development and to use or sell the intangible asset.
Amortization of the capitalized expenditure starts when the asset is available
for use. The intangible assets not yet available for use are tested annually for
impairment. Research expenditure and development expenditure recog-
nized in profit or loss are recognized in operating expenses.
Borrowing costs are capitalized as part of the acquisition cost of intangible
assets if the intangible assets are qualifying assets as defined in IAS 23 Bor-
rowing Costs. In 2023 or 2022 Glaston did not have any qualifying assets.
Goodwill represents the excess of the acquisition cost over fair value of
the assets less liabilities of the acquired entity. Goodwill arising from the
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.
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Acquisitions have been recognized in accordance with IFRS 3. Pur-
chase consideration has been allocated to intangible assets, if they have
met the recognition criteria stated in IAS 38 (Intangible Assets).
In accordance with IFRS 3 Business Combinations, goodwill is not
amortized. The carrying amount of goodwill is tested annually for impair-
ment. The testing is made more frequently if there are indications of
impairment of the goodwill. Any possible impairment loss is recognized
immediately in profit or loss.
Glaston’s goodwill has been allocated to the cash generating units of
the group.
Glaston has no other intangible assets than goodwill with indefinite
useful life. All intangible assets with the exception of goodwill are amor-
tized over their useful lives.
Estimates and assessments by Management
Useful lives of intangible assets and property, plant and equipment
are based on management's best estimate of the period the asset is
expected to be available for use by Glaston.
Customer relationships, trademarks, product development assets and
other intangible assets acquired in a business combination are measured
at fair value at the acquisition date and subsequently amortized over their
estimated useful lives.
The actual useful life can, however, differ from the expected useful
life resulting in adjustment of annual depreciation or amortization of the
asset or in recording of impairment loss.
Glaston capitalizes development costs of new products. In addition
to other capitalization criteria, management has to estimate the future
economic benefits arising from the development cost. If management
estimates that there will not be future economic benefits, the develop-
ment cost is recognized in profit or loss. Whether a development cost
is capitalized or recognized immediately in profit or loss, it can have an
effect on the result of the reporting period. At the end of the reporting
period of 2023, Glaston had EUR 9.8 (7.6) million of capitalized develop-
ment expenditure and related advance payments of the development
expenditure on its statement of financial position.
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Intangible assets
Capitalized EUR thousanddevelopment Intangible Customer 2023expenditurerightsrelations Goodwill Advances paid TotalAcquisition cost at beginning of year 27,336 16,056 11,400 52,402 4,756 111,950 Other increases 721 134 - - 3,942 4,797 Decreases - -476 - - -110 -586Reclassifications and other changes 3,854 1,208 - - -5,087 -25Exchange differences 42 282 - -508 61 -123Acquisition cost at end of year 31,954 17,203 11,400 51,894 3,409 115,859 Accumulated amortization and impairment at beginning of year -23,806 -13,994 -4,275 6,260 - -35,815Accumulated amortization relating to decreases and transfers - 476 - - - 476 Amortization during the reporting period -1,475 -597 -1,140 - - -3,211 Exchange differences 11 -285 - - - -274 Accumulated amortization and impairment at end of year -25,269 -14,375 -5,415 6,260 - -38,799Carrying amount at end of year 6,685 2,828 5,985 58,154 3,409 77,060 2022Acquisition cost at beginning of year 25,662 15,975 11,400 52,345 2,758 108,140 Other increases 212 72 - - 3,419 3,702 Decreases - -229 - - -6 -235Reclassifications and other changes 1,472 27 - - -1,499 0Exchange differences -10 211 - 58 84 342Acquisition cost at end of year 27,336 16,056 11,400 52,402 4,756 111,950 Accumulated amortization and impairment at beginning of year -22,334 -13,117 -3,135 6,260 - -32,327Accumulated amortization relating to decreases and transfers - 197 - - - 197 Amortization during the reporting period -1,468 -859 -1,140 - - -3,467 Exchange differences 4 -215 - - - -210 Accumulated amortization and impairment at end of year -23,806 -13,994 -4,275 6,260 - -35,815Carrying amount at end of year 3,530 2,062 7,125 58,662 4,756 76,135
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Consolidated financial statements / 3. Intangible assets and property, plant and equipment / 3.2. Property, plant and equipment
3.2. Property, plant and equipment
Accounting policy
Property, plant and equipment are stated at historical cost less accumulated
depreciation and impairment losses. The cost of self-constructed assets
includes the cost of materials, direct labor and an appropriate proportion of
production overheads. When an asset consists of major components with
different useful lives, they are accounted for as separate items. Assets from
acquisition of a subsidiary are stated at their fair values at the date of the
acquisition.
Depreciation is recorded on a straight-line basis over expected useful lives.
Land is not depreciated since it is deemed to have indefinite useful life.
Useful lives according to Group accounting policy are as follows:
Buildings and structures 25-40 yearsHeavy machinery 10-15 yearsOther machinery and equipment 3-5 yearsIT equipment 3-10 yearsOther tangible assets 5-10 years
The buildings include the investment property which is part of the plant
situated in Tianjin, China. This is reported as investment property and has
been leased since 2016 under a 10-year agreement.
Gain on the sale of property, plant and equipment is included in other
operating income and loss in operating expenses.
The costs of major inspections or the overhaul of property, plant and
equipment items, that occur at regular intervals and are identified as sep-
arate components, are capitalized and depreciated over their useful lives.
Ordinary maintenance and repair charges are expensed as incurred.
Borrowing costs are capitalized as part of the acquisition cost of tangible
assets if the tangible assets are qualifying assets as defined in IAS 23 Borrow-
ing Costs. In 2023 or 2022 Glaston did not have any qualifying assets.
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Glaston has given liens on chattel
as security for liabilities. These are pre-
sented in Note 5.8. At the end of 2023
and 2022 Glaston did not have any
pledged property, plant and equip-
ment or intangible assets as security
for liabilities.
At the end of 2023 and 2022 Glaston
had not contractual commitments for
the acquisition of property, plant and
equipment.
In 2023 or 2022, 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
2023 was EUR 0.3 million. Costs related
to investment property were EUR 0.1
million.
Total property, Advances plant and Machinery paid and Total property, equipment and EUR thousand Land and Buildings and Investment and Other tangible assets under plant and Right-of-use right-of-use 2023water areasconstructionspropertyequipmentassetsconstructionequipmentassetsassetsAcquisition cost at beginning of year 6,708 28,879 2,764 19,312 1,187 789 59,639 19,651 79,290 Other increases - 4 74 - 631 - 1,641 2,745 1,786 4,532 Decreases - - - -435 -113 -138 -685 - -685Reclassifications and other changes - 306 - -69 319 -391 165 338 503 Exchange differences - 358 -173 117 -16 - 285 - 285Acquisition cost at end of year 6,708 30,016 2,591 19,557 1,377 1,901 62,150 21,775 83,925 Accumulated depreciation and impairment at beginning of year - -19,485 -976 -15,911 -647 - -37,019 -13,420 -50,439Accumulated depreciation relating to decreases and transfers - - - 407 113 - 520 - 520Depreciation during the reporting period - -726 -138 -858 -210 - -1,933 -2,499 -4,432Reclassifications and other changes - -92 - -110 37 - -165 - -165Exchange differences - -316 65 -106 13 - -345 - -345Accumulated depreciation and impairment at end of year - -20,619 -1,050 -16,578 -695 - -38,942 -15,920 -54,861Carrying amount at end of year 6,708 9,398 1,541 2,979 681 1,901 23,208 5,856 29,063
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Carrying amount of machinery and equipment used in production 31 December, 2023 2,331 Carrying amount of machinery and equipment used in production 31 December, 2022 2,662
Total property, Advances plant and Machinery paid and Total property, equipment and EUR thousand Land and Buildings and Investment and Other tangible assets under plant and Right-of-use right-of-use 2022water areasconstructionspropertyequipmentassetsconstructionequipmentassetsassetsAcquisition cost at beginning of year 6,706 28,385 2,827 19,174 868 613 58,573 18,384 76,957 Other increases 2 245 - 1,007 - 894 2,147 963 3,111 Decreases - - - -970 -88 -11 -1,069 - -1,069 Reclassifications and other changes - -118 - -25 391 -707 -459 303 -156 Exchange differences - 368 -63 127 15 - 4 47 - 4 47 Acquisition cost at end of year 6,708 28,879 2,764 19,312 1,187 789 59,639 19,651 79,290 Accumulated depreciation and impairment at beginning of year - -18,586 -852 -15,691 -570 - -35,699 -11,083 -46,782 Accumulated depreciation relating to decreases and transfers - - - 605 88 - 693 - 693 Depreciation during the reporting period - -702 -149 -875 -153 - -1,879 -2,324 -4,203 Reclassifications and other changes - 118 - 163 - - 281 - 281 Exchange differences - -315 25 -113 -12 - -415 - -415 Accumulated depreciation and impairment at end of year - -19,485 -976 -15,911 -647 - -37,019 -13,407 -50,426 Carrying amount at end of year 6,708 9,395 1,788 3,401 540 789 22,620 6,245 28,865
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Consolidated financial statements / 3. Intangible assets and property, plant and equipment / 3.3. Right-of-use assets
3.3. Right-of-use assets
Accounting policy
All leases are recognized in the lessee’s statement of financial position.
The lessee recognizes in the statement of financial position a right-of-
use asset item, based on its right to use the asset, and a lease liability
item corresponding to the present value of the asset, based on the
obligation to make the lease payments. Glaston adopts the exemptions
permitted by IFRS 16 for leases of 12 months or less and for assets of low
value and continues to treat them as other leases, and their costs are
recognized as an expense on a straight-line basis.
Under IFRS 16 Leases, the amount of the right-of-use asset and the
liability is calculated by discounting future lease payments based on the
agreement. At the inception of the lease agreement, a lease liability is
recognized, which is determined as the present value of the rental pay-
ables.The discount rate will primarily be the interest rate implicit in the
lease, if available. In leases where the implicit interest rate is not speci-
fied, the discount rate used is the lessee’s incremental borrowing rate,
the components of which are the currency-specific reference rate, the
interest margin and any country or currency risk premium. For leases
valid until further notice, an estimate is made of the length of the lease.
Leases in the balance sheet
EUR thousandRight-of-use assets Buildings Vehicles Others Total Carrying amount at 1 January 2023 4,922 893 421 6,235Additions 615 1,513 47 2,175Decrease - -57 - -57Depreciation expense -1,391 -750 -358 -2,499Carrying amount at 31 December 2023 4,147 1,599 110 5,856Carrying amount at 1 January 2022 5,600 983 719 7,301Additions 677 556 53 1,286Decrease - -25 -3 -28Depreciation expense -1,355 -621 -348 -2,324Carrying amount at 31 December 2022 4,922 893 421 6,235
EUR thousand
Lease liabilities 2023 2022Carrying amount at beginning of the period 7,566 8,551Additions 2,058 1,320Interest expense 434 438Rental payment -2,945 -2,743Carrying amount at end of the period 7,113 7,566
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Leases in profit and loss statement
EUR thousand 2023 2022Depreciation of right-of-use assets -2,488 -2,324Interest expense on lease liabilities -434 -438Low value lease expense -188 -266Short-term lease expense -359 -145Total amounts recognised in profit or loss -3,469 -3,174
Average incremental borrowing rate applied at the date of initial application was
4.13% for all lease liabilities valid at 2023.
Maturity of lease liabilities is shown in note 5.6.
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Consolidated financial statements / 3. Intangible assets and property, plant and equipment / 3.4. Depreciation, amortization and impairment of assets
3.4. Depreciation, amortization and impairment of assets
Accounting policy
Intangible and tangible 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. Estimated
useful lives for intangible assets are as follows: computer software, patents,
licenses, trademarks, product rights 3 -10 years, Capitalized development
expenditure 5 -7 years, Other intangible assets 5-10 years. 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. Estimated useful
lives are as follows: Buildings and structures 25-40 years, Heavy machinery
10-15 years, Other machinery and equipment 3-5 years, IT equipment
3-10 years, Other tangible assets 5-10 years.
Annual impairment tests for goodwill are performed during the fourth
quarter of the year. If there is, however, an indication of impairment of good-
will, the impairment tests for goodwill are performed earlier during the finan-
cial year. Tangible and intangible assets of the Group are evaluated at the
end of each reporting period or at any other time, if events or circumstances
indicate that the value of an asset has been impaired.
If there are indications of impairment, the asset's recoverable amount is
estimated, based on the higher of an asset's fair value less costs to sell and
value in use. An impairment loss is recognized in profit or loss whenever the
carrying amount of an asset or cash generating unit exceeds its recoverable
amount. If subsequently recording the impairment loss, a positive change
has occurred in the estimates of the recoverable amount, the impairment
loss made in prior years is reversed no more than up to the value which
would have been determined for the asset, net of amortization or deprecia-
tion had not impairment loss been recognized in prior years. For goodwill, a
recognized impairment loss is not reversed.
Cash flow projections have been calculated on the basis of reasonable
and supportable assumptions. These are based on the most recent financial
plans and forecasts that have been approved by the 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 used in arriving at the recoverable amount is the pre-tax
weighted average cost of capital, which reflects the current market assess-
ment of time as well as value of money and of risks related to the assets and
the countries of operation. Also the industry's median capital structure has
been taken into acccount in determining the discount rate as well as
Glaston's cost of debt.
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Estimates and assessments by Management
The most significant management estimates relate to impairment tests,
which require use of estimates in the calculations. In impairment test-
ing, management estimates recoverable amount of an asset or a cash
generating unit. Recoverable amount is the higher of fair value less costs
to sell and value in use. When calculating value in use, management
estimates the future cash flows as well as the discount rates used in
discounting the cash flows. Discount rates reflect current market assess-
ments of the time value of money at the time of impairment testing
and the risks related to the tested assets. Estimated cash flows include
assumptions of, among other things, future prices, production levels,
costs and development of the markets. Impairment loss is recorded if
the carrying amount exceeds the recoverable amount.
EUR thousand 2023 2022Depreciation and amortizationIntangible assetsIntangible rights 1,737 1,999 Capitalized development expenditure 1,475 1,468 Property, plant and equipmentBuildings and constructions 2,259 2,210 Machinery and equipment 1,952 1,840 Other tangible assets 210 153 Total depreciation and amortization 7,632 7,669 Impairment losses Intangible assetsCapitalized development expenditure- 8Property, plant and equipmentMachinery and equipment -44 4 Total impairment losses -44 12 Total depreciation, amortization and impairment 7,589 7,681
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The most significant assumptions used in value in use calculations in 2023 Architecture Mobility, Display & Solar Pre-tax discount rate 11.8% 13.4%Long-term growth rate 1.0% 1.0%
Impairment of assets
In 2023 goodwill has been allocated to
correspond to the new structure.
Impairment testing of goodwill
Goodwill
EUR million
1 January, 31 December, Cash generating unit 20232023Architecture 50.1 49.4 Mobility, Display & Solar 8.6 8.7 Total goodwill 58.7 58.2
The most significant assumptions used in value in use calculations in 2022 Heat Treatment Technologies Insulating Glass Technologies Automotive Glass TechnologiesPre-tax discount rate 10.8% 12.1% 10.5%Long-term growth rate 1.0% 1.0% 1.0%
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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 to the right.
The recoverable amounts of these
cash generating units exceed their
carrying amounts by 88 per cent in
the Architecture business and by
35 per cent in the Mobility, Display &
Solar business.
A change in an assumption which, other things being equal, would cause the
recoverable amount to equal the carrying amount:
Value assigned to the Post-tax discount rate assumption Value Change Architecture 9.0% 25.8%Mobility, Display & Solar 10.5% 23.6%Value assigned to the Long-term growth rate assumption Value Change Architecture 1.0% -14.3%Mobility, Display & Solar 1.0% -2.8%
The costs of Architecture business
are estimated to be 89 per cent of the
estimated net sales during the testing
period. Should the costs be 4 per-
centage points higher, the recovera-
ble amount, other things being equal,
would equal the carrying amount.
The costs of Mobility, Display &
Solar business are estimated to be 92
per cent of the estimated net sales
during the testing period. Should the
costs be 1 percentage point higher,
the recoverable amount, other things
being equal, would equal the carrying
amount.
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4. Net working capital
4.1. Inventories .................................................................................... 146
4.2. Trade and other receivables..............................................147
4.3. Trade payables and other interest-free
liabilities ............................................................................................151
4.4. Provisions .......................................................................................152
Consolidated financial statements
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Consolidated financial statements / 4. Net working capital / 4.1. Inventories
4.1. Inventories
Estimates and assessments by Management
Measurement of inventories includes some management estimates.
Inventories are measured at lower of cost and net realizable value. Net
realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and the estimated
costs necessary to make the sale. Net realizable value is used in testing
the recoverable amount of inventories in order to avoid the inventories
being carried in excess of amount expected to be realized from their
sale or use.
Accounting policy
Inventories are reported at the lower of cost and net realizable value.
Cost is determined on a first in first out (FIFO) basis, or alternatively,
weighted average cost. Net realizable value is the amount which can be
realized from the sale of the asset in the normal course of business, after
allowing for the estimated costs of completion and the costs necessary
to make the sale.
The cost of finished goods and work in process includes materials,
direct labor, other direct costs and a systematically allocated appropriate
share of variable and fixed production overheads. As Glaston’s machine
projects are usually not considered to be qualifying assets as defined in
IAS 23, borrowing costs are not included in the cost of inventory in nor-
mal machine projects.
Used machines included in the inventory are measured individually
so that the carrying amount of a used machine does not exceed the
amount that is expected to be received from the sale of the machine. In
this measurement the costs arising from converting the used machine
back to saleable condition are taken into account.
Prototypes of new machines included in inventory are measured at
the lower of cost and net realizable value.
EUR thousand 2023 2022InventoriesMaterials and supplies 21,733 19,166 Work in process 9,323 8,217 Finished goods 4,205 4,132 Advances paid 566 4 45 Total inventories 35,827 31,959 Impairment losses of inventory during the period -201 -149Reversals of impairment losses of inventory during the period 3 61 3 74Total 160 225
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Consolidated financial statements / 4. Net working capital / 4.2. Trade and other receivables
4.2. Trade and other receivables
Accounting policy
In measuring expected credit losses from trade receivables, Glaston applies
the IFRS 9 simplified approach, which uses a lifetime expected loss allow-
ance to be assessed and recognized regularly. Credit loss risk related to cus-
tomer contract assets is covered mainly by the advance payments received
from the clients. These impairment losses are recognized in profit or loss.
If the impairment loss recognized in the allowance account becomes final,
trade receivables are decreased with the amount of the impairment loss and
the allowance account is adjusted respectively.
The counterparties of trade receivables do not normally have external
credit rating. The credit quality of these receivables is assessed based on
assessment of the impairment of financial assets based on expected credit
losses and on the payment history of the customers and third party credit
reports.
Trade receivables past due are analyzed on company level, 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
receivable. The estimate made for doubtful receivables is based on a review
of all trade receivables outstanding on the reporting date as well as on an
assessment of the impairment of financial assets based on expected credit
losses.
If the counterparty of a trade receivables is insolvent, the trade receivables
is individually determined to be impaired even though the trade receivables
were not past due. Otherwise the trade receivables not past due are not
determined to be impaired.
A finance lease receivable has been recognized when Glaston has
leased machinery and equipment for production use, which have been
treated as finance leases. The present value of the rental income from the
leased machine, discounted at the market interest rate at the time of sale, is
recorded as sales revenue. The lessor’s leases are subdivided into finance
leases and other leases.
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Estimates and assessments by Management
Measurement of trade and other receivables includes some manage-
ment estimates. If management estimates that the §carrying amount
of a trade or loan receivable exceeds its fair value, an impairment loss is
recognized. For example, payment defaults or late payments are consid-
ered as indications of impairment of the receivable.
Trade and other receivables
EUR thousand 2023 2022ReceivablesTrade receivables 11,061 17,768 (1Trade receivables, falling due after 12 months 96 - Total trade receivables 11,157 17,768 Finance leasing receivables 97 94 (1Finance leasing receivables, falling due after 12 months 276 373 Prepaid expenses and accrued income 2,144 2,548 Prepaid expenses and accrued income, (1falling due after 12 months 119 131 Other receivables 5,278 3,548 (1Other receivables, falling due after 12 months - 100 Current loan receivables - - Total receivables 19,071 24,563
(1
In non-current assets
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Prepaid expenses and accrued
income consist mainly of accruals of
financial items, fair values of derivative
instruments, accruals related to sales,
accruals related to insurances and
other accruals.
Prepaid expenses and accrued
income related to derivative instru-
ments are disclosed in more detail in
Note 5.7.
Ageing analysis of trade receivables at 31 December
Past dueCarrying amount of trade receivables after recognizing allowance account Not past due < 30 days 31-180 days 181-360 days > 360 days2023 11,157 7,706 1,875 1,489 95 -82022 17,768 12,334 3,997 1,279 122 36
Impairment losses of trade receivables and changes in allowance
account of trade receivables
EUR thousandAllowance account 1 January, 2022 1,405 Exchange difference 227 Charge for the year 412 Utilized -555Unused amounts reversed -338Allowance account 31 December, 2022 1,151 Exchange difference 195 Charge for the year 1,457 Utilized -591Unused amounts reversed -442Allowance account 31 December, 2023 1,770 Impairment losses of trade receivables recognized in profit or loss, net (- income)2023 1,0002022 -69
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EUR thousand 2023 2022Minimun lease receivables Unearned finance income Minimun lease receivables Unearned finance incomeFinance lease receivables are due as followsNo later than 1 year 97 14 94 17 Later than 1 year and no later than 5 years 276 21 373 34 Later than 5 years - - - - Total finance lease receivables 373 34 467 51 Present value of minimum lease receivables 398 489
Finance lease receivables
Operating leases as a lessor
Glaston has some other operating lease agreements where the Group acts as
lessor. In Finland and China, premises adjacent to the factory are leased to exter-
nal parties. The minimum payments for these non-cancellable lease agreements
are shown in the table below.
2023 2022Minimum future payments of operating leasesMaturity within 1 year 876 911 Maturity later than 1 year and not later than 5 years 926 1,348 Maturity later than 5 years - - Total minimum future payments of operating leases 1,802 2,259
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Consolidated financial statements / 4. Net working capital / 4.3. Trade payables and other interest-free liabilities
4.3. Trade payables and other interest-free liabilities
EUR thousand 2023 2022Trade payables 20,918 16,369 Advances received 43,091 39,488 Accrued expenses and deferred income 14,692 15,185 Other current interest-free liabilities 2,520 2,096 Total current interest-free liabilities 81,220 73,137
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
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Consolidated financial statements / 4. Net working capital / 4.4. Provisions
4.4. Provisions
Estimates and assessments by Management
If Glaston’s management has assessed that as a result of a past event
Glaston has a legal or constructive obligation, and that it is probable,
that an outflow of resources will be required to settle the obligation, the
management has estimated the amount of provision recognized from
the obligation. The amount of the provision is the management’s best
estimate of the amount required to settle the obligation at the end of the
reporting period. The management’s estimate of the warranty provi-
sion is based on previous experience. The estimate of the restructuring
provision is based on the restructuring plan in which the locations and
personnel concerned have been identified. If possible, external experts
have been used in estimating the amount of the provision.
Accounting policy
A provision is recognized when as a consequence of some previous
event there has arisen a legal or constructive obligation, and it is proba-
ble that this will cause future expenses and the amount of the obligation
can be evaluated reliably.
A restructuring provision is booked only when a detailed and fully
compliant plan has been prepared for it and implementation of the plan
has been started or notification of it has been made known to those
whom the arrangement concerns. The amount recognized as a provi-
sion is the best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. If the time value of money is
material, provisions are discounted.
A provision for warranties is recognized when the underlying products
are sold. The provision is estimated on the basis of historical warranty
expense data. Warranty provision is presented as non-current or current
provision depending on the length of the warranty period.
The amount and probability of provision requires management to make
estimates and assumptions. Actual results may differ from these esti-
mates.
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Non-current provisions
EUR thousand
Warranty Other 2023provisionprovisions Tota lCarrying amount 1 January 296 131 427 Reclassification -212 - -212 Increase in provisions 270 20 290 Provisions released during the period -109 -28 -138 Carrying amount 31 December 244 124 368 2022Carrying amount 1 January 174 123 297 Reclassification -282 - -282 Increase in provisions 521 11 532 Provisions released during the period -118 -3 -121 Carrying amount 31 December 296 131 427
Warranty provisions
Glaston grants to its machine deliv-
eries a guarantee period of 1 to 2
years. During the guarantee period
Glaston repairs the defects, if any, of
the machines and carries the costs of
the repairing. The warranty provisions
are expected to be realized within the
next two years.
Current provisions
but is not limited to, estimated provi-
sions for employee benefits related
to personnel, whose employment has
been terminated. For some of the
provisions it is not possible to estimate
timing of the outflow of economic
benefits, for example due to that the
timing of such outflows are depend-
ent on the actions of an external party.
Restructuring provisions
Glaston has recorded restructuring
provisions for rationalization measures
by closing production units or reduc-
ing activities at the units. Restructur-
ing provisions only include expenses
that are necessarily entailed by the
restructuring, and which are not asso-
ciated with the on-going activities.
The restructuring provision includes,
Other provisions
Other provisions include, among
other things, litigation provisions and
provisions for costs, for which third
party compensation has not yet been
recognized.
Reclassification refers to a transfer from long-term to short-term or change in
classification.
Warranty Restructuring Other 2023provisionprovisionprovisions TotalCarrying amount 1 January 2,930 124 142 3,196 Exchange difference -47 17 6 -25 Reclassification 108 -5 - 103 Increase in provisions 2,459 293 40 2,792 Provisions used during the period -1,532 -149 -44 -1,725 Provisions released during the period -844 - - -844 Carrying amount 31 December 3,072 280 144 3,496 2022Carrying amount 1 January 2,164 177 141 2,482 Exchange difference 3 21 2 26 Reclassification 282 -5 - 277 Increase in provisions 3,225 - 43 3,268 Provisions used during the period -1,716 -70 -30 -1,816 Provisions released during the period -1,028 - -13 -1,042 Carrying amount 31 December 2,930 124 142 3,196
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5. Capital structure and
financial instruments
5.1. Management of capital .........................................................155
5.2. Cash and cash equivalents................................................ 156
5.3. Equity ................................................................................................157
5.4. Management of financial risks ......................................... 159
5.5. Financial assets and liabilities by category .............. 163
5.6. Borrowings and lease liabilities ....................................... 168
5.7. Derivative instruments .........................................................169
5.8. Contingencies .............................................................................171
Consolidated financial statements
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Consolidated financial statements / 5. Capital structure and financial instruments / 5.1. Management of capital
5.1. Management of capital
The objective for management of
capital is to secure the continuation of
operations at all times and to maintain
appropriate capital structure. In the
capital management planning pro-
cess, both current and future needs of
the business are taken into consider-
ation together with securing flexibility
and competitive pricing of financing,
The primary measure for the
Group’s capital structure is net
gearing. It is calculated as the ratio
between net interest-bearing debt
to equity. The Group’s equity ratio is
also used as a measure for the capital
structure. It is calculated as the ratio
between equity to the total assets
adjusted with advance payments
received. Additionally, the Group's
liquid funds are monitored regularly.
The Group’s loan agreements
include covenants and other terms
and conditions which are linked to
consolidated key figures. If the cove-
nant terms are not fulfilled, negotia-
tions with the lenders will be initiated.
These negotiations may lead to notice
of termination of financial agree-
ments. The covenants in use are net
interest-bearing debt to equity (net
gearing ratio) and net interest-bear-
ing debt to EBITDA (leverage). Group
treasury is responsible for monitoring
the covenants and reports the situa-
tion regularly to management and the
Board of Directors of Glaston Corpo-
ration. All covenant terms during the
financial year have been met.
EUR thousand 2023 2022Interest-bearing net debtNon-current interest-bearing liabilities 25,077 29,794 Current interest-bearing liabilities 6,005 5,742 Cash and cash equivalents -20,153 -22,224Total 10,929 13,312 EquityAttributable to owners of the parent 69,313 68,437 Total 69,313 68,437 Total assets 196,466 194,892 Advances received -43,091 -39,488Total 153,375 155,404 Equity ratio, % 45.2% 44.0%Net gearing, % 15.8% 19.5%
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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Consolidated financial statements / 5. Capital structure and financial instruments / 5.2. Cash and cash equivalents
5.2. Cash and cash equivalents
EUR thousand 2023 2022Cash and bank 20,153 22,224Total cash and cash equivalents 20,153 22,224
Accounting policy
Cash and cash equivalents comprise cash and other financial assets.
Other financial assets are highly liquid investments with remaining
maturities at the date of acquisition of three months or less. Bank over-
drafts are included in current interest-bearing liabilities.
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Consolidated financial statements / 5. Capital structure and financial instruments / 5.3. Equity
5.3. Equity
Accounting policy
Other restricted equity reserves
Other restricted equity funds include restricted capital not included
in the share capital of subsidiaries.
Other unrestricted equity reserves
Other unrestricted equity reserve includes changes in the fair values
of investments measured at fair value through other comprehen-
sive 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.
Reserve for invested unrestricted equity
The invested unrestricted equity fund includes equity investments
and shares subscription price.
Treasury shares
Treasury shares acquired by the company and the related costs
are presented as a deduction of equity. Gain or loss on surrender
of treasury shares are recorded in reserve for invested unrestricted
equity net of tax.
Exchange difference
In the consolidated financial statements, statements of profit or loss,
statements of comprehensive income and statements of cash flows
of foreign subsidiaries have been translated into euros using the aver-
age exchange rates of the reporting period and the statements of
financial positions have been translated using the closing exchange
rates at the end of the reporting period.
Exchange difference arising from translating the statements of
profit or loss, statements of comprehensive income and statements
of financial position using the different exchange rates is recognized
as other comprehensive income and included in retained earnings in
equity. Exchange differences arising from the translation of the net
investments in foreign subsidiaries and associates in non-euro-area
are also recognized in other comprehensive income and included in
equity as cumulative exchange difference.
On the disposal of all or part of a foreign subsidiary or an associ-
ate, the cumulative amount or proportionate share of the exchange
difference is reclassified from equity to profit or loss as a reclassifica-
tion item in the same period in which the gain or loss on disposal is
recognized.
Dividends and return of capital
Dividends or return of capital proposed by the Board of Directors
are not recorded in the financial statements until they have been
approved by the shareholders at the Annual General Meeting.
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Share capital and number of shares
Shares and Voting Rights
Glaston Corporation has one class of shares. The number of outstanding shares
is 84,289,911 and each share carries one vote at general meetings of share-
holders. There are no limitations to transfer the shares. On December 31, 2023,
Glaston Corporation's share capital amounted to EUR 12,696,000. The share has
no nominal value. The share's counter book value is EUR 0.15 per share. Glaston’s
shares are registered in the book-entry securities system maintained by Euro-
clear Finland Ltd. The shares are subject to the redemption clause of the Articles
of association.
Number of shares and treasury shares 2023 2022Number of shares 1 January 84,289,911 84,289,911 Number of shares 31 December 84,289,911 84,289,911 Treasury shares 250,000 - Number of shares excluding treasury shares 31 December 84,039,911 84,289,911
2023 2022Distribution of profit(1Return of capital per share, EUR0.05 0.04
1)
The Board of Directors' proposal to the 2024 Annual General Meeting.
2023 2022Equity attributable to owners of the parent, EUR thousand 69,313 68,437 Number of shares excluding treasury shares 84,039,911 84,289,911 Equity attributable to owners of the parent per share, EUR 0.82 0.81
The company has an agreement with an external service provider for the man-
agement of key personnel's share bonus systems and the acquisition of shares.
On 31 December 2023, there were 250,000 shares on the balance sheet, which
were acquired during the 2023 financial year. These shares are the property of
EAI Hedging 3 Oy until the shares are handed over to the participants within the
incentive systems.
The legal ownership of EAI Hedging 3 Oy is with an external service provider,
but based on the agreement, Glaston Oyj Abp actually exercises control over the
arrangement, which is why the holding company is combined with the IFRS con-
solidated financial statements as a structured community.
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Consolidated financial statements / 5. Capital structure and financial instruments / 5.4. Management of financial risks
5.4. Management of financial risks
Financial risk management
The main objectives for financial risk
management within Glaston are to
secure operational continuity, sup-
port the achievement of operational
objectives and to implement treasury
functions cost-effectively utilizing the
Group’s economies of scale.
The Group’s treasury functions
have been centralised to the parent
which is responsible for relations with
financial institutions, long-term financ-
ing arrangements and the investment
of liquid assets as well as the Group’s
internal funding allocations accord-
ing to the liquidity needs of different
group companies. Group Treasury
cooperates with the group compa-
nies to identify the risks and pro-
vides financial services for the group
companies in order to manage these
identified risks.
The management of financial risks
in Glaston Group is conducted in
accordance with the Glaston Group's
Treasury Policy approved by the Board
of Directors of Glaston Corporation.
It is the responsibility of the CFO and
Group Treasury to propose amend-
ments to this policy as conditions
within the Group and on the financial
markets change. Group Treasury
is responsible for monitoring com-
pliance with the Treasury Policy as
well as for presenting the need for
changes to Treasury Policy to the par-
ent’s Board of Directors.
The Group’s financial risks consist
of foreign exchange, interest rate,
credit, counterparty and liquidity risks.
Due to its international operations the
Group is exposed to risks arising from
foreign exchange rate fluctuations.
The effects of interest rate changes
on the Group's annual result create an
interest rate risk. Credit and coun-
terparty risk primarily consists of risk
related to credit granted to custom-
ers. Liquidity risk is defined as the risk
that the Group’s funds and borrowing
facilities become insufficient to meet
the needs of the business or that extra
costs are incurred in order to arrange
the financing needed.
Also investment of liquid funds is man-
aged in accordance with the Treasury
Policy. Liquid assets are invested in low
risk instruments and only counterpar-
ties that possess good credit-worthi-
ness are accepted.
Market risks
Foreign exchange risk
The Group operates internationally
and is therefore exposed to transac-
tion and translation risks arising from
fluctuations in foreign exchange rates
which may have an effect on profit or
loss and financial position. Transaction
risks arise from cash flows generated
by purchase and sales activities while
translation risks arise from converting
items in the statements of profit or
loss and the statements of financial
position of non-euro subsidiaries into
the Group’s reporting currency.
The invoicing currency for a large
proportion of the Group’s deliveries
is the euro, which is also the Group’s
reporting currency. The most signifi-
cant foreign exchange risk arises from
exchange rate fluctuations between
the euro and the US dollar, but the
Group may also have significant
exposures in Chinese Yuan, English
Pound and Swiss Franc. The US dollar
accounted for approximately 22 per
cent of the net sales in 2023 (22 per
cent). The Euro and US dollar together
accounted for approximately 92 per
cent of the invoicing in 2023 (82 per
cent).
The Group did not have foreign
currency denominated loans. The
Group's internal loans are either short-
term working capital credit facilities
or subordinated long-term loans
denominated on a case-by-case basis
either in the local currency of the
foreign subsidiary or in the reporting
currency of the Group.
The objective for foreign exchange
risk management is primarily to
secure the planned result of group
companies from unexpected cur-
rency fluctuations. Possible hedging of
foreign exchange risk is conducted in
Glaston Annual Review 2023 159
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accordance with the Treasury Policy
and the group companies are respon-
sible for reporting their respective
foreign currency items. In 2023, large
orders in USD and the most probable
orders by case-by-case assessment
were hedged by currency forward
contracts. Cash flow hedging was
based on IFRS 9 hedge accounting in
2023. Cash flow hedging is presented
in note 5.7. 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 2023. The
analysis takes into consideration the
impact of foreign exchange deriva-
tives, if such instruments have been
used, which offsets the effects of
changes in foreign exchange rates.
In the table below, the effect of
the main currencies on consolidated
result before taxes has been analysed.
Only risks that are related to finan-
cial instruments are included in the
analysis.
Interest rate risk
Possible changes in the interest rates
cause a risk that will affect the result
of the Group. The objective of interest
risk management is to minimize, if
necessary, the effect of interest rate
fluctuations on the Group’s annual
result.
As a measurement for the man-
agement of interest rate risk an effect
of the 1 percent changed of interest
rates to interest expences for the
period of 12 months has been used.
At the end of 2023 this effect was EUR
120 thousand (EUR 160 thousand).
On 31 December 2023, the Group’s
interest-bearing net debt mainly con-
sisted of loans agreed with lenders
in the financing agreement signed in
2022. In April 2022, Glaston entered
into a 3-year interest rate swap with
a nominal value of EUR 12 million to
hedge a variable rate loan, which is
subject to hedge accounting.
For the sensitivity analysis as
defined by IFRS 7, a possible +1 /
-0.5 percentage 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 2023 is EUR -0.12 / +0.06
(-0.16 / +0.08) million and the effect
to Group's equity is EUR +0,21 / -0,11
million.
Change in currency rate, Change in currency rate, Net position impact on the Gross positionincome statementCurrency EUR thousandForwards - 10+ 10- 10+ 102023 Gross positionnominal value Net positionper centper centper centper centUSD/EUR -36,196 14,385 -21,811 -4,022 3,291 -2,423 1,983CHF/EUR -233 - -233 -26 21 -26 21CNY/EUR -17,822 -1,980 1,620 -1,980 1,620- -17,822 GBP/EUR -1,184- -1,184-132 108 -132 108-55,435 14,385 -41,050
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Credit and counterparty risk
The Group becomes exposed to
credit and counterparty risks when it
grants payment time to the custom-
ers. The credit worthiness of these
counterparties may decrease and
affect the Group’s result. Credit risk
management is conducted in accord-
ance with the Group’s Credit Manage-
ment Policy.
The objective for credit risk man-
agement is to reduce this risk as much
as possible without compromising the
flexibility needed by different business
areas. Risk management is performed
together with the business manage-
ment with the objective to avoid major
credit risk concentrations and to
verify, that sufficient guarantees and
collaterals are received. The Group
reduces its credit risk by using letters
of credit and various types of guar-
antees received from the customers
to secure the receivables. In addition,
the Group uses advance payments
to reduce risk and to accelerate fund
inflows. Glaston is closely monitoring
and managing its liquidity and financial
position. Credit risks are mitigated
through stringent customer pay-
ment terms with significant customer
advances. Orders are only registered
in the order book upon receipt of
a customer advance. In measur-
ing expected credit losses, Glaston
applies the IFRS 9 simplified approach,
which uses a lifetime expected loss
allowance from trade receivables to
be assessed and recognized regularly.
At the end of 2023, 13.7 ( 5.0) 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.
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 2023 was
EUR 11.2 million (EUR 17.8 million).
Ageing analysis and changes in
allowance account of trade receiva-
bles are presented in Note 4.2. to the
consolidated financial statements.
Liquidity risk
Liquidity risk is defined as the risk that
the Group’s funds and borrowing
facilities become insufficient to meet
the business needs or that significant
extra costs are incurred in order to
arrange the financing needed.
Liquidity risk is managed through
effective use of advance payments in
order to reduce the amount of work-
ing capital tied up in the operations.
A special focus is set on the working
capital management and the devel-
opment is monitored regularly. Short-
and long-term cash planning is part of
group companies’ operational activity
together with the Group Treasury. As a
measurement for the liquidity risk are
the Group's liquid funds and unused
credit facilities. Group Treasury
reports the Group’s liquidity position
regularly to the management and
to the Board of Directors of Glaston
Corporation.
Glaston Corporation signed a
long-term financing agreement in
March 2022. The financing agreement
consists of a EUR 30 million long-
term loans as well as a EUR 25 million
revolving credit facility. The agree-
ment is for three years and includes
two one-year options for extension of
the loan period. In February 2023, the
first of the two one-year options of
the financing agreement was utilized
and the loan period for the EUR 18
million long-term loan and for revolv-
ing credit facility was extended until
March 2026. The loan margin of the
financing agreement is adjusted by
the achievement of Glaston's sustain-
ability objectives annually. The objec-
tives are Safety at work (decrease
of lost time accidents, measured as
lost time injury frequency rate LTIFR)
and CO2 emissions (Scope 1 & 2) in
relation to net sales. The covenant
terms of the financing package are
described in the note 5.1. Manage-
ment of capital.
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Committed credit facilitiesEUR million In use Unused TotalCommitted credit facilities 31.12.2023 3.0 22.0 25.0Committed credit facilities 31.12.2022 2.0 23.0 25.0
Maturity analysis of financial liabilities 31 December 2023
EUR thousand Maturing inMaturity of financial liabilities Carrying amount Contractual cash flows < 12 months 1-2 years > 2 yearsFinancial liabilitiesLoans from financial institutions 23,812 26,399 5,312 2,572 18,515 Other interest-bearing loans 157 161 41 40 80 Lease liabilities 7,113 7,783 2,282 1,983 3,518 Trade payables 20,918 20,918 20,918 - - Total 52,000 55,260 28,552 4,595 22,112
Maturity analysis of financial liabilities 31 December 2022EUR thousand Maturing inMaturity of financial liabilities Carrying amount Contractual cash flows < 12 months 1-2 years > 2 yearsFinancial liabilitiesLoans from financial institutions 27,774 30,025 4,909 4,777 20,339 Other interest-bearing loans 196 206 41 41 123 Lease liabilities 7,566 8,432 2,242 1,774 4,416 Trade payables 16,369 16,369 16,369 - - Total 51,905 55,032 23,561 6,592 24,878
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Consolidated financial statements / 5. Capital structure and financial instruments / 5.5. Financial assets and liabilities by category
5.5. Financial assets and liabilities by category
Accounting policy
Glaston’s financial assets have been classified into three categories: as assets
recognized at amortized cost, at fair value through other comprehensive
income and at fair value through profit or loss. The classification depends on
the business model under which the financial assets are managed as well
as the characteristics of the instrument’s cash flows. A financial asset item
is derecognized from the statement of financial position when Glaston’s
contractual right to the cash flows from the financial asset item expire or the
financial asset item is transferred to an external party and the transfer fulfills
the asset derecognition requirements of IFRS 9.
Financial liabilities are classified at amortized cost using the effective inter-
est method, or at fair value through profit or loss. A financial liability or part of
a financial liability is derecognized from the statement of financial position
when the liability has ceased to exist, i.e. when the obligation specified in the
contract has been discharged or canceled or has expired.
Glaston’s long term financial assets have been classified into assets rec-
ognized at fair value through other comprehensive income. The classification
depends on the business model under which the financial assets are man-
aged as well as the characteristics of the instrument’s cash flows. A financial
asset item is derecognized from the statement of financial position when
Glaston’s contractual right to the cash flows from the financial asset item
expire or the financial asset item is transferred to an external party and the
transfer fulfills the asset derecognition requirements of IFRS 9.
Derivative Contracts Recognized at Fair Value through Profit or Loss, And Hed-
ge Accounting
Derivative contracts are entered in the statement of financial position at the
time of acquisition at fair value and remeasured at fair value in the finan-
cial statements using the market prices at the end of the reporting period.
Entries of the changes of derivatives are influenced by whether a derivative
contract falls within the scope of hedge accounting. Derivatives that do
not meet the hedge accounting conditions are financial assets and liabili-
ties acquired for trading and entered at fair value through profit or loss, and
whose changes of value are recognized immediately through profit or loss.
When a hedging arrangement is entered into, the relationship between
the item being hedged and the hedging instrument, as well as the objec-
tives of the Group’s risk management are documented. The IFRS 9 standard
requires an economic relationship between the hedged item and the hedg-
ing instrument as well as the same hedge ratio that management actually
uses in risk management.
If the hedging accounting conditions are met, cash flow hedge account-
ing under IAS 9 is applied with respect to foreign exchange derivatives. If the
hedge accounting conditions are not met, the result of hedging instruments
when hedging a commercial foreign exchange risk are recognized in profit or
loss within other operating income or expenses.
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Derivative instruments are included in the statement of financial position
in current assets and liabilities. Trade date accounting is used in recognizing
sales and purchases of derivatives.
Hedge accounting was used in hedging the trade receivables of projects
and in hedging a variable rate loan. In April 2022, Glaston entered into a 3-year
interest rate swap with a nominal value of EUR 12 million to hedge a varia-
ble rate loan, which is subject to hedge accounting. At the end of reporting
period 2023, Glaston had open foreign exchange and interest rate 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 pur-
chases and sales of other assets recognized at fair value through profit or
loss.
Loans and Other Receivables
Loans and other receivables are assets which are not included in derivative
assets. Loans and other receivables arise when money, goods or services are
delivered to a debtor. They are not quoted in an active market and payments
related to them are either fixed or determinable. Loans and receivables
granted by the Group are measured at amortized cost.
Loan receivables, trade receivables and other receivables have been
classified as loans and other receivables. They are included in current or
non-current financial assets in accordance with their maturity. Loan and
trade receivables falling due after 12 months are discounted, if no interest
is charged separately, and the increase in the receivable which reflects
the passage of time is recognized as interest income in financial income
and expenses.
Trade receivables are carried at the original invoice amount less the
share of the discounted interest and an estimate made for doubtful
receivables. The estimate made for doubtful receivables is based on
a review of all trade receivables outstanding on the reporting date as
well as on an assessment of the impairment of financial assets based
on expected credit losses. Impairment losses of trade receivables are
recorded in a separate allowance account within trade receivables, and
the impairment losses are recognized in profit or loss as other operating
expenses. If the impairment loss is final, the trade receivable is derecog-
nized from the allowance account. If a payment is later received from
the impaired receivable, the received amount is recognized in profit or
loss as a deduction of other operating expenses. If no impairment loss
has been recognized in allowance account and the impairment loss of
the trade receivable is found to be final, impairment loss is recognized
directly as deduction of trade receivables.
Loan receivables are carried at the original amount less an estimate
made for doubtful receivables. The estimate made for doubtful receiv-
ables is based on a separate review of all loan receivables outstanding
on the reporting date as well as on an assessment of the impairment of
financial assets based on expected credit losses. For example, payment
defaults or late payments are considered as indications of impairment of
the receivable. Impairment losses of loan receivables are recognized in
profit or loss as financial expenses. If a payment is later received from the
impaired receivable, the received amount is recognized in profit or loss in
financial items.
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Financial Assets Valued at Fair Value through other comprehensive income
Financial assets measured at fair value through other comprehensive
income are financial assets not included in derivative assets, assets or lia-
bilities recognized at fair value through profit or loss, or other receivables.
Listed investments included in financial assets measured at fair value
through other comprehensive income are valued at the market price
at the end of the reporting period. The value of investments whose fair
value is not based on verifiable market data, such as unlisted shares and
other investments, is based on information obtained from the company
or on the fair value of substantially similar instruments.
Unrealized changes in the fair value of financial assets measured at
fair value through other comprehensive income are recognized in other
comprehensive income less tax effects and are included in the fair value
reserve in equity.
Financial assets at fair value through other comprehensive income are
included in non-current assets in the statement of financial position.
Financial Liabilities Measured at Amortized Cost
On initial recognition, financial liabilities are measured at their fair values
that are based on the consideration received. Subsequently, financial
liabilities are measured at amortized cost using the effective interest
method. Transaction costs are included in the acquisition cost.
Financial liabilities measured at amortized cost include pension loans,
loans from financial institutions, finance lease liabilities, trade payables
and advances received. They are included in current or non-current lia-
bilities in accordance with their maturity.
Interest expenses are accrued for and mainly recognized in profit or
loss for each period. If an asset is a qualifying asset as defined in IAS 23
Borrowing Costs, the borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset are capital-
ized to the acquisition cost of the asset. The capitalization applies mainly
to property, plant and equipment and intangible assets.
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Financial assets and liabilities by category
Financial assets and liabilities measured Financial assets at fair value through and liabilities at EUR thousand other comprehensive fair value through Financial liabilities at Total carrying 31 December, 2023 Noteincome profit and loss amortized costamounts Total fair valueCash 5.2. - - 20,153 20,153 - Trade receivables 4.2. - - 11,157 11,157 - Other interest-free receivables 4.2. - - 6,135 6,135 - Derivatives (receivables) 5.7. 857 - - 857 - Shares and oher long-term investments 8 - - 8 - Non-current interest-bearing liabilities 5.6. - - -25,077 -25,077 -22,718Current interest-bearing liabilities 5.6. - - -6,005 -6,005 -6,105Trade payables 4.3. - - -20,918 -20,918 - Other current interest-free liabilities 4.3. - - -2,520 -2,520 - Derivatives (liabilities) 5.7. -47 - - -47 - Total 818 - -17,075 -16,257 -28,82331 December, 2022Cash 5.2. - - 22,224 22,224 - Trade receivables 4.2. - - 17,768 17,768 - Other interest-free receivables 4.2. - - 4,635 4,635 - Other non-current interest-free receivables 4.2 - - 100 100 - Derivatives (receivables) 5.7. 1,087 - - 1,087 - Shares and oher long-term investments 7 - - 7 - Non-current interest-bearing liabilities 5.6 - - -29,794 -29,794 -27,852Current interest-bearing liabilities 5.6 - - -5,742 -5,742 -5,872Trade payables 4.3. - - -16,369 -16,369 - Other current interest-free liabilities 4.3. - - -2,096 -2,096 - Derivatives (liabilities) 5.7. -395 - - -395 - Total 699 - -9,274 -8,574 -33,724
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Fair value measurement hierarchy, Level 3, changes during the reporting period
31.12.2023 31.12.2022 Level 1 Level 2 Level 3 Tota l Level 1 Level 2 Level 3 Tota lAssetsCurrency forward contracts - 857 - 857 - 1,087 - 1,087Total - 857 - 857 - 1,087 - 1,087LiabilitiesFinacial liabilities - -28,823 - -28,823 - -33,724 - -33,724Currency forward contracts - -47 - -47 - -395 - -395Total - -28,870 - -28,870 - -34,119 - -34,119
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
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Consolidated financial statements / 5. Capital structure and financial instruments / 5.6. Borrowings and lease liabilities
5.6. Borrowings and lease liabilities
EUR thousand 2023 2022Loans from financial institutions 19,930 23,931 Lease liablities 5,147 5,863 Total non-current interest-bearing liabilities 25,077 29,794
1-2 years 2-3 years 3-5 years > 5 years Total Loans from financial institutions 2,000 17,812 118 - 19,930Lease liablities 2,049 1,432 1,665 1 5,147Total 4,049 19,244 1,783 1 25,077
Loans from financial institutions 4,039 4,039 Lease liabilities 1,966 1,703 Total current interest-bearing liabilities 6,005 5,742
Non-current interest-bearing liabilities 25,077 29,794 Current interest-bearing liabilities 6,005 5,742 Cash -20,153 -22,224Total 10,929 13,312
Non-current interest-bearing liabilities
Maturity of long term interest bearing liabilities
Current interest-bearing liabilities
Interest-bearing net liabilities
The Group’s funding is mainly orga-
nized by using the Facilitites Agree-
ment signed in March 2022.
All Group's loans from financial insti-
tutions are denominated in euros.
The Group’s loan agreements
include covenants and other terms
and conditions which are linked to
consolidated key figures. If the cove-
Effectiverate and Exchange Reclassifi-1.1.2023 Cash flow*differencescation 31.12.2023Non-current interest-bearing liabilities 29,794 -490 -188 -4,039 25,077Current interest-bearing liabilities 5,742 -3,776 - 4,039 6,005Total 35,536 -4,266 -188 - 31,082
*Cash flow includes the changes of leasing agreements
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. Covenant terms are described
in more detail in Note 5.1.
The liquidity and currency risk
related to interest-bearing debt is
described in more detail in Note 5.4.
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Consolidated financial statements / 5. Capital structure and financial instruments / 5.7. Derivative instruments
5.7. Derivative instruments
Accounting policy
Derivative contracts are entered in the statement of financial position at the
time of acquisition at fair value and remeasured at fair value in the finan-
cial statements using the market prices at the end of the reporting period.
Entries of the changes of derivatives are influenced by whether a derivative
contract falls within the scope of hedge accounting. Derivatives that do not
meet the hedge accounting conditions are financial assets and liabilities
acquired for trading and entered at fair value through profit or loss, in whose
changes value are recognized immediately through profit or loss.
When a hedging arrangement is entered into, the relationship between
the item being hedged and the hedging instrument, as well as the objec-
tives of the Group’s risk management are documented. The IFRS 9 standard
requires an economic relationship between the hedged item and the hedg-
ing instrument as well as the same hedge ratio that management actually
uses in risk management.
If the hedging accounting conditions are met, cash flow hedge accounting
under IAS 9 is applied with respect to derivatives. If the hedge accounting
conditions are not met, the result of hedging instruments are recognized in
profit or loss within other operating income or expenses.
Derivative instruments are included in the statement of financial position
in current assets and liabilities. Trade date accounting is used in recognizing
sales and purchases of derivatives.
Derivative instruments are used only for currency and interest rate hedg-
ing purposes. Nominal values of derivative instruments do not necessarily
correspond with the actual cash flows between the counterparties and do
not therefore give a fair view of the risk position of the Group. The fair values
are based on market valuation on the date of reporting.
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In reporting periods 2023 and 2022,
hedge accounting was used in hedg-
ing the trade receivables of projects.
In April 2022, Glaston entered into a
3-year interest rate swap with a nom-
inal value of EUR 12 million to hedge
a variable rate loan, which is subject
to hedge accounting. At the end of
reporting periods 2023 and 2022,
Glaston had open foreign exchange
forward contracts.
EUR thousand 2023 2022Derivative instruments in the income statementItems included in net sales -566 -1,457Financial items -1 -6Derivative instruments in the statement of financial position, receivables and liabilitiesAccrued expenses and deferred incomeCurrency and interest rate forwards 47 395 Accrued income Currency and interest rate forwards 857 1,087
Nominal and fair values of derivative instruments
2023 2022EUR thousand Nominal value Fair value Nominal value Fair valueCurrency forwards 14,385 213 18,736 102 Interest rate forwards 12,000 384 12,000 578
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Consolidated financial statements / 5. Capital structure and financial instruments / 5.8. Currency forwards
5.8. Contingencies
EUR thousand 2023 2022Loans secured with mortgages or pledgesLoans from financial institutions 24,000 28,000 Liens on chattel 292,500 292,500 Carrying amount of pledged securities 21,590 21,590 Total mortgages, liens on chattel and pledged assets 314,090 314,090 Contingent liabilitiesLiens on chattel On behalf of own commitments 292,500 292,500 Securities pledged On behalf of own commitments 21,590 21,590 Total 314,090 314,090
Liens on chattel are related to companies: Glaston Services Ltd. Oy and Glaston
Finland Oy. Glaston Corporation, Glaston Finland Oy and Glaston Services Ltd. Oy
are jointly responsible for the debts of Glaston Group.
Guarantees On behalf of own commitments 11,855 15,308 On behalf of others 2 76 261 Total 12,131 15,569 Total contingent liabilities 326,221 329,659
Other contingent liabilities and litigations
At year end, Glaston Tianjin Co. Ltd. has endorsed EUR 2.0 million of bank drafts.
The expiring dates of the bank drafts are in the first half of year 2024.
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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6. Group stucture
6.1. Shares and holdings ................................................................ 173
Consolidated financial statements
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Group companies Group holding % Parent holding %Glaston Oyj Abp Helsinki FinlandUniglass Engineering Oy Tampere Finland 100% 100%Glaston Services Ltd. Oy Tampere Finland 100% 100% Glaston Finland Oy Tampere Finland 100% Glaston International Oy Tampere Finland 100% Glaston America, Inc. Cherry Hill, NJ United States 100% Glaston UK Ltd. Shropshire United Kingdom 100% Glaston Singapore Pte. Ltd. Singapore Singapore 100% Glaston Tianjin Co. Ltd. Tianjin China 100% Glaston Management (Shanghai) Co. Ltd. Shanghai China 100% Glaston China Co. Ltd. Tianjin China 100% Glaston Brasil Ltda São Paulo Brasil 100% Glaston Hong Kong Ltd. Hong Kong China 100% Glaston Germany GmbH ** Neuhausen-Hamberg Germany 100% Glaston Switzerland AG Bützberg Switzerland 100% Bystronic Glass UK Ltd. Shropshire United Kingdom 100%EAI Hedging 3 Oy Helsinki Finland 0% 0%
Changes in subsidiaries in 2023
• Bystronic Glass Machinery
(Shanghai) Co. Ltd was liquidated
in May 2023
• Glaston France S.A.R.L. was
liquidated in July 2023
Consolidated financial statements / 6. Group stucture / 6.1. Shares and holdings
6.1. Shares and holdings
Changes in subsidiaries in 2022
• Glaston Emerging Technologies Oy
was merged to Glaston Services Ltd
Oy in July 2022
• OOO Bystronic Steklo was liquidated
in July 2022
• LLC Glaston's shares were sold in
July 2022
In the fiscal year 2023, EAI Hedging 3 Oy has been established, which, financed by Glaston, will
acquire shares in accordance with the agreement in accordance with the provisions of the Limited
Liability Companies Act regarding the financing of the acquisition of own shares. These shares are
used as part of Glaston's share-based incentive scheme in accordance with its terms. The legal
ownership of the holding company is with Evli Alexander Incentives, but based on the agreement,
Glaston actually exercises control over the arrangement and acts as the principal, while EAI acts as
an agent through the holding company. This control arising from contractual features leads to the
fact that the holding company is combined with the IFRS consolidated financial statements as a
so-called structured community.
" **Pursuant to Sec. 291 German Commercial Code, all EU subsidiaries included in these consoli-
dated 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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7. Other notes
7.1. Related parties ...........................................................................175
7.2. Events after end of the reporting period ..................178
Consolidated financial statements
Glaston 2023
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Consolidated financial statements / 7. Other notes / 7.1. Related parties
7.1. Related parties
Parties are considered to be related
parties if a party is able to exercise
control over the other or substan-
tially influence its decision-making
concerning its finances and business
operations.
Glaston Group's related parties
include the parent of the Group
(Glaston Corporation) and subsidi-
aries.
Also the shareholders, which
have significant influence in Glaston
through shareholding, are consid-
ered to be related parties, as well as
the companies controlled by these
shareholders.
Related parties also include the
members of the Board of Directors,
the Group's Executive Leadership
Team, the CEO and their family
members as well as the companies
controlled by them.
Glaston follows the same com-
mercial terms in transactions with
associates and other related parties
as with third parties.
Total accrual based remuneration
of the Board of Directors and the
Executive Leadership Team was EUR
2,745 (2,950) thousand.
Remuneration of the Executive Leadership Team, accrual based
EUR 2023 2022CEO Salaries 334,904 323,707 Bonuses 45,725 191,079 Share based benefit - - Total 380,630 514,786 Fringe benefits 10,757 13,888 Total 391,387 528,674 Statutory pension payments (Finnish TyEL or similar plan) 102,574 144,073 Voluntary pension payments 39,962 37,303 Anders Dahlblom served as the President and CEO until 15 November 2023, after which Antti Kaunonen has served as the Interim CEO. The CEO salaries above in the 2023 column include the total combined salaries of Dahlblom and Kaunonen.Total other Executive Leadership TeamSalaries 1,495,668 1,454,942 Bonuses 169,433 386,170 Share based benefit 137,989 19,879 Total 1,803,091 1,860,991 Fringe benefits 184,451 214,718 Total 1,987,542 2,075,709 Statutory pension payments (Finnish TyEL or similar plan) 265,644 302,202 Voluntary pension payments 43,257 40,096
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The remuneration the Executive
Leadership Team includes salaries
only for the period of membership.
The CEO's period of notice is 3
months. In the event the company
would give notice to the CEO, he will
receive an additional remuneration
equaling 12 months' salary.
Compensation of the CEO and
other members of the Executive
Leadership Team consists of a fixed
monthly salary, an annual bonus and a
share-based incentive plan intended
as a long-term incentive (described
in more detail in Note 2.6). The criteria
for bonus payments are consolidated
result, result of the business area or
business unit as well as functional tar-
gets. The maximum annual bonus of
the CEO is 80 per cent of the annual
salary. The maximum annual bonus of
the other members of the Executive
Leadership Team is 40 per cent of the
annual salary.
The retirement age of the CEO
of Glaston Corporation and other
members of the Executive Leadership
Team is according to the normal local
legislation, ie. 63-68 years.
Remuneration of the Board of Directors, accrual based
2023 2022EUR annual fee meeting fee total annual fee meeting fee totalVeli-Matti Reinikkala, Chair of the Board of Directors 77,500 16,700 94,200 67,500 15,900 83,400 Sebastian Bondestam, Deputy Chair of the Board of Directors 43,000 8,500 51,500 49,750 6,750 56,500 Sarlotta Narjus 33,000 9,000 42,000 32,250 6,750 39,000 Antti Kaunonen 33,000 8,000 41,000 32,250 6,250 38,500 Arja Talma 43,000 9,000 52,000 42,250 6,750 49,000 Tero Telaranta 33,000 9,000 42,000 32,250 7,250 39,500 Michael Willome 33,000 10,000 43,000 32,250 7,750 40,000 Total 295,500 70,200 365,700 288,500 57,400 345,900
The members of Glaston Corpora-
tion's Board of Directors were paid
an annual remuneration and a meet-
ing fee; other compensation was
not paid. The 2022 Annual General
Meeting resolved that an annual fee
of EUR 70,000 (70,000) shall be paid
to the Chair of the Board, EUR 43,000
(43,000) to the Deputy Chair and EUR
33,000 (33,000) to other Members of
the Board. In addition, a meeting fee
of EUR 800 (800) per meeting held
in the Chair's home country and EUR
1,500 per meeting held elsewhere
were paid to the Chair. The other
members of Glaston Corporation's
Board of Directors were paid EUR 500
per meeting held in the Board mem-
ber's home country and EUR 1,000 per
meeting held elsewhere. For a Board
Meeting, which is hold per capsulam,
half of the regular fee will be paid.
A Member of the Board may, at his/
her discretion, choose to receive the
annual fixed remuneration partly in
company shares and partly in cash so
that approximately 40% of the annual
fixed remuneration is paid in Glaston
Corporation’s shares.
The members of Glaston Corpora-
tion's Audit and People and Remuner-
ation Committees are paid for every
meeting, that a member has partic-
ipated, EUR 500 per meeting held in
the Board member's home country
and EUR 1,000 per meeting held
elsewhere. In addition, the Chair of the
Audit Committee was paid an annual
fee of EUR 10,000 and the Chair of the
People and Remuneration Committee
an annual fee of EUR 7,500.
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Glaston shares31.12.2023 31.12.2022Veli-Matti Reinikkala, Chair of the Board of Directors 825,042 720,558 Sebastian Bondestam, Deputy Chair of the Board of Directors 69,456 51,255 Sarlotta Narjus - - Antti Kaunonen 162,686 148,718 Arja Talma 36,681 22,713 Tero Telaranta 37,057 23,089 Michael Willome - -
Board of Directors, share ownership
Share ownership includes also the ownership of Glaston Corporation shares
by the related parties of the person in question and entities controlled by the
person in question.
Glaston shares31.12.2023 31.12.2022Antti Kaunonen, interim CEO 162,686 148,718 Sasu Koivumäki 94,735 89,979 Miika Äppelqvist 8,027 6,815 Päivi Lindqvist 42,217 38,680 Artturi Mäki 8,390 4,731 Robert Prange 46,099 40,000 José Yepes - - Riikka Laitasalo - - Kaisa Latva - -
Executive Leadership Team, share ownership
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Consolidated financial statements / 7. Other notes / 7.2. Events after end of the reporting period
7.2. Events after end of the reporting period
On January 19, 2024, the Proposals
of Glaston Corporation’s Sharehold-
ers’ Nomination Board to the Annual
General Meeting 2024 were disclosed.
The Nominations Board proposes that
the current members of the Board
of Directors Veli-Matti Reinikkala,
Sebastian Bondestam, Antti Kau-
nonen, Sarlotta Narjus, Arja Talma, Tero
Telaranta and Michael Willome shall be
re-elected as Members of the Board
of Directors. Furthermore, the Nomi-
nation Board proposes that the annual
remuneration of the Members of the
Board of Directors be as follows (cur-
rent remuneration in brackets): Chair
of the Board EUR 74,000 (70,000),
Deputy Chair of the Board EUR 45,000
(43,000) and other Members of the
Board EUR 35,000 (33,000).
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Income statement of the parent company (FAS)
Parent company financial statements
1 January - 31 December
EUR thousand Note 2023 2022
Net sales 2 6,204 4,041
Other operating income 3 5,997 5,271
Material and services 4 -984 -
Personnel expenses 5 -3,696 -3,303
Depreciation, amortization and impairment losses 6 -401 -365
Other operating expenses 7 -8,437 -7,179
Operating profit / -loss -1,316 -1,535
Net financial items 8 -317 -237
Profit / loss before appropriations and taxes -1,632 -1,772
Appropriations 9 3,992 -4
Income taxes 10 -288 -
Profit / loss for the financial year 2,072 -1,775
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Balance sheet of the parent company (FAS)
at 31 December
EUR thousand Note 2023 2022
Assets
Non-current assets
Intangible assets 11 2,880 1,903
Tangible assets 11 34 16
Subordinated loan receivable Group Companies 11.12 36,846 36,846
Investments 12.13 17,211 17,211
Non-current assets, total 56,971 55,977
Current assets
Non-current receivables 14 78,003 78,000
Current receivables 14 16,790 13,027
Cash and bank 13,698 13,322
Current assets, total 108,492 104,349
Total assets 165,463 160,326
at 31 December
EUR thousand Note
2023 2022
Equity and liabilities
Equity
Share capital 12,696 12,696
Hedging reserve 307 463
Reserve for invested unrestricted equity 106,684 110,056
Retained earnings -48,941 -47,165
Profit / loss for the financial year 2,072 -1,775
Total equity 15 72,818 74,274
Accumulated appropriations 16 111 103
Liabilities
Non-current liabilities 17 20,000 24,000
Current liabilities 18 72,534 61,949
Total liabilities 92,534 85,949
Total equity and liabilities 165,463 160,326
Parent company financial statements
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Parent company cash flow statement (FAS)
EUR thousand 2023 2022
Cash flow from operating activities
Profit / loss for the financial period 2,072 -1,775
Adjustments:
Income taxes for the period 288 -
Deferred taxes -3,992 4
Financial income and expenses 317 237
Depreciation, amortization and impairment 401 365
Proceeds from disposal of tangible and
intangible assets - -17
Other adjustments -15 -14
Cash flow before change in net working capital -931
-1,202
Change in net working capital
Change in current interest-free receivables
Change in current interest-free liabilities
-1,026 -860
920 -146
Cash flow from operating activities before financial items
and taxes -1,037 -2,208
Interests paid and payments made for other financial
items and income taxes
Interests and other financial expenses paid
Interest received
-1,938 -1,694
1,803 1,456
Cash flow from operating activities before
extraordinary items -1,173 -2,445
Cash flow from operating activities -1,173 -2,445
EUR thousand 2023 2022
Cash flow from investing activities
Investments in tangible and intangible assets -1,395 -968
Cash flow from investing activities -1,395 -968
Cash flow from financing activities
Drawn-down of non-current loans - 24,000
Repayments in non-current loans -4,000 -31,000
Change in current intra-group receivables 10,315 5,369
Drawn-down of current loans 4,000 4,000
Repayments of current loans -4,000 -4,000
Return of capital -3,372 -2,529
Cash flow from financing activities 2,944 -4,159
Change in cash and cash equivalents 376 -7,572
Cash and cash equivalents at the beginning of the period 13,322 20,895
Cash and cash equivalents at the end of the period 13,698 13,322
Change in cash and cash equivalents 376 -7,572
Parent company financial statements
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1. 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 Republic of Finland. Glaston’s
shares are publicly traded on NASDAQ
Helsinki Ltd. Small Cap in Helsinki, Fin-
land. Glaston Corporation is domiciled
in Helsinki, Finland and its registered
office is Lönnrotinkatu 11, 00120 Hel-
sinki, 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
Intangible assets in the parent com-
pany's financial statements also
include investments acquired as cloud
services that meet the definition of an
intangible asset.
Share-based incentive plans
The share-based incentive plans paid
in cash have been recognized in the
parent company's financial state-
ments 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. Derivatives are
recognized at fair value in financial
items. Valuation methods of deriva-
tives are presented in the accounting
policies of Glaston Group.
Finance Leasing
Lease payments are recognized as
lease expenses. Leasing obligations
are presented as contingent liabilities.
Appropriations
Untaxed reserves consist of a depre-
ciation difference. This difference
between scheduled depreciation and
amortization and the depreciation
and amortization deducted in arriving
to taxable profit is presented as the
appropriations in the income state-
ment and as a separate item in the
balance sheet.
Group contributions received from
and given to subsidiaries are pre-
sented as appropriations.
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2. Net Sales
Notes to parent company financial statements (FAS) / Note 2
EUR thousand 2023 2022
Net sales by business
Service sales 6,204 4,041
Net sales by country by destination
Finland 1,673 534
Other EMEA 3,761 2,812
Americas 704 559
Asia 66 136
Total 6,204 4,041
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
3. Other Operating Income
EUR thousand 2023 2022
Charges from group companies 5,997 5,271
Other operating income, total 5,997 5,271
5. Personnel Expenses
Notes to parent company financial statements (FAS) / Note 5
EUR thousand 2023 2022
Salaries and fees -3,010 -2,679
Pension expenses -634 -545
Other personnel expenses -51 -78
Total -3,696 -3,303
Salaries and remuneration paid to members of the
Board of Directors and Managing Director 757 875
Employees during financial year, average
White collar 24 18
Total 24 18
4. Material and services
EUR thousand 2023 2022
External services -984 -
Total -984 -
Notes to parent company financial statements (FAS) / Note 4
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7. Other Operating
Expenses
Notes to parent company financial statements (FAS) / Note 7
EUR thousand 2023 2022
Rents -213 -195
Information and communications technology expenses -5,889 -5,214
Travel expenses -121 -97
Losses on disposals of assets - -5
Credit losses -52 -
Other expenses -2,161 -1,668
Other operating expenses, total -8,437 -7,179
Fees paid to auditors
Audit -80 -61
Statutory statements -8 -7
Other services - -12
Total -88 -80
EUR thousand 2023 2022
Interest and other financial income
From group companies 1,413 1,395
From external parties 555 145
Interest and other financial income 1,969 1,541
Interest and other financial income, total 1,969 1,541
Interest and other financial expenses
To group companies -634 -402
To external parties -1,652 -1,375
Interest and other financial expenses, total -2,285 -1,777
Net financial items, total -317 -237
Other financial income and expenses include foreign
exchange gains and losses (net) -11 19
8. Net Financial Items
Notes to parent company financial statements (FAS) / Note 8
6. Depreciation, Amortization
and Impairment Losses
EUR thousand
2023 2022
Depreciation and amortization according to plan
Intangible assets
Intangible rights -261 -228
Other capitalized expenditure -131 -131
Tangible assets
Machinery and equipment -8 -6
Total depreciation and amortization according to plan -401 -365
Notes to parent company financial statements (FAS) / Note 6
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9. Appropriations
Notes to parent company financial statements (FAS) / Note 9
EUR thousand 2023 2022
Received group contributions 4,000 -
Difference between depreciation and amortization according
to plan and depreciation and amortization in taxation -8 -4
Total 3,992 -4
Notes to parent company financial statements (FAS) / Note 10
10. Income Taxes
EUR thousand 2023 2022
Income taxes for operations -88 -
Change in deferred tax assets -200 -
Total -288 -
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11. Fixed Assets
Notes to parent company financial statements (FAS) / Note 11
Intangible assets
EUR thousand Intangible rights
Other capitalized
expenditure
Advance payments and
investments in progress Total
Acquisition cost 1 January, 2023 5,681 1,276 926 7,884
Additions - 1 1,368 1,369
Disposals -387 -89 - -476
Reclassifications 1,811 50 -1,861 -
Acquisition cost 31 December, 2023 7,106 1,238 434 8,777
Accumulated amortizations and impairment losses 1 January, 2023 -5,053 -928 - -5,981
Accumulated amortizations of disposals and transfers 387 89 - 476
Amortization of the period -255 -137 - -392
Accumulated amortizations and impairment losses 31 December, 2023 -4,922 -975 - -5,897
Carrying amount at 31 December, 2023 2,184 263 434 2,880
Carrying amount at 31 December, 2022 628 349 926 1,903
Tangible assets
EUR thousand Intangible rights
Other capitalized
expenditure
Advance payments and
investments in progress Total
Acquisition cost 1 January, 2023 170 113 - 283
Additions 26 - - 26
Disposals -74 - - -74
Acquisition cost 31 December, 2023 123 113 - 235
Accumulated depreciations and impairment losses 1 January, 2023 -164 -103 - -267
Accumulated depreciations of disposals and transfers 74 - - 74
Depreciation for the period -8 - - -8
Accumulated depreciations and impairment losses 31 December, 2023 -99 -103 - -202
Carrying amount 31 December, 2023 24 10 - 34
Carrying amount at 31 December, 2022 6 10 - 16
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12. Investments
Notes to parent company financial statements (FAS) / Note 12
EUR thousand
Shares
Group companies
Shares
Others
Subordinated loan receivable
Group companies Total
Carrying amount at 1 January, 2023 17,204 8 36,846 54,058
Carrying amount at 31 December, 2023 17,204 8 36,846 54,058
Notes to parent company financial statements (FAS) / Note 13
13. Shares and holdings owned by the Parent
Subsidiary shares
EUR thousand Ownership-% Number of shares Carrying amount
Uniglass Engineering Oy, Tampere, Finland 100% 20,000 2,351
Glaston Services Ltd. Oy, Tampere, Finland 100% 1,800,000 14,853
Total 17,204
Other
Other shares and holdings 8
Total 8
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14. Receivables
Notes to parent company financial statements (FAS) / Note 14
EUR thousand 2023 2022
100 300
Non-current receivables
Receivables from external parties
Deferred tax assets
Other receivables
203 -
Total 303 300
Receivables from group companies
Loan receivables 77,700 77,700
Total 77,700 77,700
Non-current receivables, total 78,003 78,000
Current receivables
Receivables from external parties
Trade receivables 97 55
Other receivables 97 33
Prepaid expenses and accrued income 1,026 1,234
Total 1,220 1,322
Receivables from group companies
Trade receivables 3,833 3,088
Loan receivables 6,341 7,058
Group Contribution receivables 4,000 -
Accrued interest receivables 1,341 1,341
Prepaid expenses and accrued income 55 217
Total 15,570 11,704
Current receivables, total 16,790 13,027
Relevant items of prepaid expenses and accrued income
Interest SWAP 384 578
Financial items 219 293
Prepaid insurances 15 110
Other 464 470
Prepaid expenses and accrued income, total 1,081 1,451
EUR thousand 2023 2022
Share capital 1 January 12,696 12,696
Share capital 31 December 12,696 12,696
Hedging reserve account 1 January 463 -
Change in financial year -156 463
Hedging reserve account 31 December 307 463
Reserve for invested unrestricted equity 1 January 110,056 112,584
Capital repayment -3,372 -2,529
Reserve for invested unrestricted equity 31 December 106,684 110,056
Retained earnings 1 January -48,941 -47,165
Retained earnings 31 December -48,941 -47,165
Profit / loss for the financial year 2,072 -1,775
Equity at 31 December 72,818 74,274
Distributable funds at 31 December
Reserve for invested unrestricted equity 106,684 110,056
Retained earnings -48,941 -47,165
Profit / loss for the financial year 2,072 -1,775
Distributable funds 59,815 61,115
15. Equity
Notes to parent company financial statements (FAS) / Note 15
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16. Accumulated
Appropriations
Notes to parent company financial statements (FAS) / Note 16
EUR thousand 2023 2022
Accumulated depreciation difference 1 January 103 100
Increase (+) / decrease (-) 8 4
Accumulated depreciation difference 31 December 111 103
Notes to parent company financial statements (FAS) / Note 17
17. Non-current Liabilities
EUR thousand 2023 2022
Liabilities to external parties
Loans from financial institutions 20,000 24,000
Liabilities to external parties, total 20,000 24,000
Non-current liabilities, total 20,000 24,000
18. Current Liabilities
Notes to parent company financial statements (FAS) / Note 18
EUR thousand 2023 2022
Liabilities to external parties
Loans from financial institutions 4,000 4,000
Trade payables 847 -
Other liabilities 306 108
Accrued expenses and deferred income 1,656 1,662
Deferred tax liability 77 116
Liabilities to external parties, total 6,886 5,886
Liabilities to group companies
Other interest-bearing liabilities 65,603 56,005
Accrued expenses and deferred income 46 59
Liabilities to group companies, total 65,649 56,063
Current liabilities, total 72,534 61,949
Accrued expenses and deferred income
Salary and other personnel expense accruals 804 931
Interests 342 236
Other 556 554
Accrued expenses and deferred income, total 1,702 1,720
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19. Contingent Liabilities
Notes to parent company financial statements (FAS) / Note 19
EUR thousand 2023 2022
Leasing liabilities
Maturity within one year 54 68
Maturity later than one year 40 62
Total 94 130
The leasing agreements have normal terms.
Other rental liabilities
Maturity within one year 51 48
Maturity later than one year 1 2
Total 52 50
Pledges
On behalf of group companies 7,580 10,858
Loans secured with pledged assets and mortgages
Loans from financial institutions 24,000 28,000
Liens on chattel
On own behalf 97,500 97,500
Carrying amount of pledged securities 14,853 14,853
Mortgages, liens on chattel and pledged assets are given on behalf of own and
other group companies.
Liens on chattel are given jointly with Glaston Services Ltd. Oy and Glaston
Finland Oy.
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Signatures for the Board of Directors’ Review
and Financial Statements
Helsinki, 14 February 2024
Veli-Matti Reinikkala
Chair of the Board
Sebastian Bondestam
Deputy Chair of the Board
Sarlotta Narjus Arja Talma Michael Willome
Antti Kaunonen Tero Telaranta
Antti Kaunonen
CEO
The Auditor's note
Our auditor's report has been issued today.
Tampere, 14 February 2024
KPMG Oy Ab
Authorised public accountants
Lotta Nurminen
Authorized Public Accountant, KHT
Glaston Annual Review 2023 191
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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, 2023. 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 material accounting
policy information, as well as the par-
ent company’s balance sheet, income
statement, statement of cash flows
and notes.
In our opinion
• the consolidated financial state-
ments give a true and fair view of
the group’s financial position, finan-
cial performance and cash flows in
accordance with IFRS Accounting
Standards as adopted by the EU
• the financial statements give a true
and fair view of the parent com-
pany’s financial performance and
financial position in accordance with
the laws and regulations governing
the preparation of financial state-
ments in Finland and comply with
statutory requirements.
Our opinion is consistent with the
additional report submitted to the
Audit Committee.
Basis for Opinion
We conducted our audit in accord-
ance with good auditing practice in
Finland. Our responsibilities under
good auditing practice are further
described in the Auditor’s Responsi-
bilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent
company and of the group compa-
nies in accordance with the ethical
requirements that are applicable in
Finland and are relevant to our audit,
and we have fulfilled our other ethical
responsibilities in accordance with
these requirements.
In our best knowledge and under-
standing, the non-audit services
that we have provided to the parent
company and group companies are in
compliance with laws and regulations
applicable in Finland regarding these
services, and we have not provided
any prohibited non-audit services
referred to in Article 5(1) of regulation
(EU) 537/2014. The non-audit services
that we have provided have been dis-
closed in note 2.4 to the consolidated
financial statements.
We believe that the audit evidence
we have obtained is sufficient and
appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influ-
enced by our application of materi-
ality. The materiality is determined
based on our professional judgement
and is used to determine the nature,
timing and extent of our audit pro-
cedures and to evaluate the effect
of identified misstatements on the
financial statements as a whole. The
level of materiality we set is based
on our assessment of the magnitude
of misstatements that, individually
or in aggregate, could reasonably
be expected to have influence on the
economic decisions of the users of the
financial statements. We have also taken
into account misstatements and/or pos-
sible misstatements that in our opinion
are material for qualitative reasons for
the users of the financial statements.
Key Audit Matters
Key audit matters are those matters
that, in our professional judgment, were
of most significance in our audit of the
financial statements of the current
period. These matters were addressed
in the context of our audit of the financial
statements as a whole, and in forming
our opinion thereon, and we do not
provide a separate opinion on these
matters. The significant risks of material
misstatement referred to in the EU Reg-
ulation No 537/2014 point (c) of Article
10(2) are included in the description of
key audit matters below.
We have also addressed the risk
of management override of internal
controls. This includes consideration of
whether there was evidence of man-
agement bias that represented a risk of
material misstatement due to fraud.
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
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The key audit matter How the matter was addressed in the audit
Revenue recognition (Note 2.2 Revenue from contracts with customers)
The consolidated revenue comprise different revenue flows based on different
contract types, such as sale of machines, spare parts and services.
Revenue from the sale of goods is recognized at a point in time or over time
when the buyer receives the goods or gains control. Revenue from services
rendered and repair work is recognized when the service has been rendered
or the work has been completed.
The most significant risks relate to revenue from tailor-made glass process-
ing machine deliveries for which the revenue is recognized over time. These
involve management estimates related to measuring the progress towards
complete satisfaction of the performance obligation and total estimated costs.
Net sales for the reporting period include EUR 148.3 million revenue recognized
over time representing 68 percent of total net sales.
Selection of revenue recognition methods and revenue recognition involve
management judgement and estimates and thus revenue recognition is con-
sidered a key audit matter.
Our audit procedures included evaluation of the revenue recognition prin-
ciples applied by the Group and assessment of their appropriateness by
reference to IFRS standards.
We have obtained an understanding of processes relating to different
revenue flows and identified and assessed internal controls over revenue
recognition as well as tested their effectiveness. In addition, we performed
substantive testing and analytical procedures, partly based on data analyt-
ics, in order to assess the appropriateness of revenue recognition and the
accounting treatment of recording revenue and the related expenses in the
correct period.
We assessed the control environment in respect of the main sales soft-
ware and the related user rights management.
We discussed with the management the revenue recognition practices
applied and decisions involving management judgement and estimates
which had an impact on revenue recognition.
Furthermore, we considered the appropriateness of the Group’s disclo-
sures in respect of revenue recognition principles and net sales.
Valuation of goodwill (Note 3.1 Intangible Assets and 3.4 Depreciation, Amortization and Impairment of Assets)
Value of goodwill amounts to EUR 58.2 million, which is 30 percent of the total
assets and 84 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 estimates.
Due to the high level of management estimates related to the forecasts
used in goodwill impairment tests and the significant carrying amounts
involved, valuation of goodwill is considered as a key audit matter.
We have assessed the key assumptions used in the impairment calculations,
such as profitability, discount rate and long-term growth rate with relation to
the forecasts presented to the Board of Directors, external references and
our own views.
We involved KPMG valuation specialists when assessing the technical
accuracy of the calculations and comparing the assumptions used with
external market and industry data.
In addition, we considered the appropriateness of the Group’s disclosures
in respect of goodwill impairment testing.
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Responsibilities of the Board of
Directors and the Managing Director
for the Financial Statements
The Board of Directors and the
Managing Director are responsible
for the preparation of consolidated
financial statements that give a true
and fair view in accordance with IFRS
Accounting Standards as adopted
by the EU, and of financial state-
ments 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 2023 194
Glaston 2023
Sustainability
Governance
Financial Review
We communicate with those
charged with governance regarding,
among other matters, the planned
scope and timing of the audit and
significant audit findings, including any
significant deficiencies in internal con-
trol that we identify during our audit.
We also provide those charged with
governance with a statement that we
have complied with relevant ethical
requirements regarding independ-
ence, and communicate with them all
relationships and other matters that
may reasonably be thought to bear on
our independence, and where appli-
cable, related safeguards.
From the matters communicated
with those charged with governance,
we determine those matters that
were of most significance in the audit
of the financial statements of the
current period and are therefore the
key audit matters. We describe these
matters in our auditor’s report unless
law or regulation precludes public
disclosure about the matter or when,
in extremely rare circumstances, we
determine that a matter should not be
communicated in our report because
the adverse consequences of doing
so would reasonably be expected to
outweigh the public interest benefits
of such communication.
Other Reporting
Requirements
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 4 years.
Other Information
The Board of Directors and the Man-
aging Director are responsible for the
other information. The other infor-
mation comprises the report of the
Board of Directors and the information
included in the Annual Report, but
does not include the financial state-
ments or 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 avail-
able 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 2024
KPMG OY AB
LOTTA NURMINEN
Authorised Public Accountant, KHT
Glaston Annual Review 2023 195
Glaston 2023
Sustainability
Governance
Financial Review
Glaston Corporation
Lönnrotinkatu 11, 00120 Helsinki, Finland
Finland
Tel. +358 500 500
Website: www.glaston.net
Business identity code: 1651585-0
Glaston Corporation is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural,
mobility, solar and display industries. The company also supports the development of new technologies integrating intelligence to glass.
Glaston is committed to providing its clients with both the best know-how and the latest technologies in glass processing, with the purpose of build-
ing a better tomorrow through safer, smarter, and more energy efficient glass solutions. Glaston operates globally with manufacturing, services, and
sales offices in 9 countries. Glaston Corporation is a public limited liability and its shares (GLA1V) are listed on NASDAQ Helsinki Ltd. Small Cap..
Independent Auditor’s Reasonable
Assurance Report on Glaston Corporation’s
ESEF Financial Statements
To the Board of Directors of Glaston
Corporation
We have undertaken a reasonable
assurance engagement in respect
of whether the consolidated finan-
cial statements for the year ended
31 December, 2023 included in
the digital financial statements
743700V3I7CLI3DJ8L62-2023-12-31-en.
zip of Glaston Corporation (Business
ID 1651585-0) have been marked up
with iXBRL markups in accordance
with the requirements of Article 4 of
EU Delegated Regulation 2018/815
(ESEF RTS).
The Responsibility of the Board of
Directors and Managing Director
The Board of Directors and Managing
Director are responsible for prepar-
ing the report of the Board of Direc-
tors and financial statements (ESEF
financial statements) that comply with
the requirements of ESEF RTS. This
responsibility includes:
• preparation of ESEF financial state-
ments in XHTML format in accord-
ance with Article 3 of the ESEF RTS
• marking up the primary statements
and the notes to the consolidated
financial statements, and the com-
pany identification data included in
the ESEF financial statements with
iXBRL tags in accordance with Arti-
cle 4 of the ESEF RTS; and
• ensuring consistency between ESEF
financial statements and audited
financial statements.
The Board of Directors and the
Managing Director are also respon-
sible for such internal control as they
deem necessary to prepare the ESEF
financial statements in accordance
with the requirements of the ESEF
RTS.
Auditor’s Independence and
Quality Management
We are independent of the com-
pany in accordance with the ethical
requirements applicable in Finland,
which apply to the engagement we
have performed, and we have fulfilled
our other ethical responsibilities in
accordance with these requirements.
The auditor applies International
Standard on Quality Management
ISQM 1, which requires the firm to
design, implement and operate a sys-
tem of quality management includ-
ing policies or procedures regarding
compliance with ethical requirements,
professional standards and applicable
legal and regulations requirements.
Auditor’s Responsibility
In accordance with the Engagement
Letter our responsibility is to express
an opinion on whether the marking up
of the consolidated financial state-
ments included in the ESEF financial
statements comply in all material
respects with the Article 4 of the ESEF
RTS. We conducted our reasonable
assurance engagement in accord-
ance with International Standard on
Assurance Engagements 3000.
The engagement involves proce-
dures to obtain evidence whether;
• the primary statements of the
consolidated financial statements
included in the ESEF financial state-
ments are, in all material respects,
marked up with iXBRL tags in
accordance with Article 4 of the
ESEF RTS, and;
• whether the notes to the consol-
idated financial statements and
the company identification data
included in the ESEF financial state-
ments data, have been marked up,
in all material respects, with iXBRL
tags in accordance with Article 4 of
the ESEF RTS; and
• whether the ESEF financial state-
ments and the audited financial
statements are consistent with each
other.
The nature, timing and the extent of
procedures selected depend on prac-
titioner’s judgement. This includes the
assessment of the risks of material
departures from the requirements set
out in the ESEF RTS, whether due to
fraud or error.
We believe that the evidence
we have obtained is sufficient and
appropriate to provide a basis for our
opinion.
Opinion
In our opinion, the primary state-
ments of the consolidated financial
statements, the notes to the consol-
idated financial statements and the
company identification data included
in the ESEF financial statements of
Glaston Corporation identified as
743700V3I7CLI3DJ8L62-2023-12-31-en.
zip for the year ended 31 Decem-
ber, 2023 are, in all material respects,
marked up in compliance with the
ESEF Regulatory Technical Standard.
Our audit opinion on the audit of
the consolidated financial statements
of Glaston Corporation for the year
ended 31 December, 2023 is set out in
our Auditor’s Report dated 14 Feb-
ruary, 2024. In this report, we do not
express any audit opinion or other
assurance conclusion on the consoli-
dated financial statements.
Tampere 15 March, 2024
KPMG OY AB
Lotta Nurminen
Authorised Public Accountant, KHT
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