Glaston CorporationInterim Report January-March 2012

3 May 2012Arto Metsänen, CEOTapio Engström, CFO

Key items in the Q1 report

• Glaston’s overall market developed according to expectations.• Consolidated net sales in January-March totalled EUR 35.5 (34.2)

million.• The operating result excluding non-recurring items improved

compared to last year and was a loss of EUR -0.6 million.• A goodwill impairment loss of EUR 3.0 million was recognised as a

non-recurring item in the Machines segment’s Pre-processing operating segment.

• Outlook:• Glaston expects that 2012 net sales will be at least at the 2011

level and that the operating result excluding non-recurring items will be positive.

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Operating environment

• Glaston’s overall market developed according to plan.• In South America and Asia, market growth levelled off as

competition intesified.• In North America, a gradual recovery of the market was

perceptible.• In the EMEA area, the market in Southern Europe remained

subdued, while elsewhere demand was on satisfactory level.

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January-March key figures

EUR million 1-3/2012 1-3/2011 2011Orders received 32.8 38.1 141.3Order book 36.7 44.3 37.6Net sales 35.5 34.2 142.7Operating result, *)

-0.6 -0.9 -1.4

ROCE, % -13.7 -3.4 0.3Earnings per share, EUR

-0.05 -0.09 -0.14

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*) excluding non-recurring items

Small growth in net sales

• During the first quarter Glaston’s market developed in line with expectations.

• Signs of increasing customer activity within the Macines segment.

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35.5 34.2

142.7

0

50

100

150

Q1/12 Q1/11

MEUR

2011

Operating resultexcluding non-recurring items

• Operating result excluding non-recurring items improved from last year.

• Biggest result improvement in the Machines segment.

• Services segment increased further its result.

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-0.6

-0.9

-1.4-1,5

-1,0

-0,5

0,0

Q1/12 Q1/11 2011

Sales by area, EUR million

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r te

xt

are

a

7

8.1 9.7

Q1 Orders received, EUR million

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20.7 24.0

Order book, EUR million

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36.229.8

39.7 41.5 44.338.7 36.7 37.6 36.7

0

10

20

30

40

50

Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12

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Net sales Operating result excl. non-recurring items

In the review period, a number of deals were concluded for Glaston Tamglass FC500™ machines. Sales of the new Bavelloni ExtraEdge™

double edging machine grew in the review period and the worldwide launch of the Glaston Bavelloni Hyon™ edging machine was completed .

In the review period, a number of deals were concluded for Glaston Tamglass FC500™ machines. Sales of the new Bavelloni ExtraEdge™

double edging machine grew in the review period and the worldwide launch of the Glaston Bavelloni Hyon™ edging machine was completed .

Machines: cautious growth

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Net sales Operating result excl. non-recurring items

Customers were particularly interested in upgrade products equipped with advanced convection and control systems. The Vortex Pro™

convection system continued to be popular. Glasswerks, one of North America’s leading architectural glass manufacturers, decided to modernise four of its tempering furnaces with the Vortex Pro™.

Customers were particularly interested in upgrade products equipped with advanced convection and control systems. The Vortex Pro™

convection system continued to be popular. Glasswerks, one of North America’s leading architectural glass manufacturers, decided to modernise four of its tempering furnaces with the Vortex Pro™.

Services: firm development

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Net sales Operating result excl. non-recurring items

The extensive operational development programme was completed during the review period. In Europe, the sales and service organization

was streamlined and operations were centralized in three countries: Germany, France and Sweden. Increased investments in R&D.

The extensive operational development programme was completed during the review period. In Europe, the sales and service organization

was streamlined and operations were centralized in three countries: Germany, France and Sweden. Increased investments in R&D.

Software Solutions: development programme completed

Outlook

• Glaston's market will remain challenging in 2012. Economic uncertainty will continue to impact customers’ investment decisions.

• Growth in the Asian and South American markets is expected to level off. Cautious signs of recovery are evident in the North American market. In the EMEA area, the Southern European market will continue to be challenging, while a slight pick-up in demand is perceptible in Central, Northern and Eastern Europe.

• The cornerstones of Glaston’s operations remain the architectural glass segment and the solar energy market. The architectural segment creates the foundation for the company’s future growth. In the longer term, prospects for the solar energy segment are good. The automotive industry also offers good growth opportunities.

• We will purposefully continue our investment in those areas which do not require significant investments from our customers, namely maintenance services and tools. We expect the good development of the service market to be sustained in 2012.

• Glaston expects that 2012 net sales will be at least at the 2011 level and that the operating result excluding non-recurring items will be positive.

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