Q1

President and CEO Hannu Martola | 27 April 2020

2020

Business review

January-March

27.4.2020 Detection Technology | Business review January-March 20202

Q1 2020 › 19.9 net sales, €m

(23.1)

-13.6net sales change-%

(19.3)

1.2EBIT, €m

(3.9)

5.9EBIT-%(16.7)

27.4.2020 Detection Technology | Business review January-March 20203

Q1 2020 ›Demand and profitability weakened by COVID-19, however succeeded in minimizing adverse effects of the pandemic on DT business

COVID-19-risks realized in the security market, and SBU sales decreased as Asia got the hit first

Medical CT demand grew towards the end of Q1 driven by the pandemic

Operating margin decreased, cash flow however remained strong

Healthy prospects in medical for Q2 and H2, and mid-term growth drivers strong in both of the business units

NET SALES BY QUARTER

4 27.4.2020 Detection Technology | Business review January-March 2020

(EUR 1,000)

0

5 000

10 000

15 000

20 000

25 000

30 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2017 2018 2019 2020

OPERATING PROFIT

5 27.4.2020 Detection Technology | Business review January-March 2020

(EUR 1,000)

19.6%20.3%

22.9%

25.4%

19.4%

21.4% 21.0%

19.2%

16.7%17.5%

19.1%

15.6%

5.9%

0%

5%

10%

15%

20%

25%

30%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000Q

117

Q21

7

Q31

7

Q41

7

Q11

8

Q21

8

Q31

8

Q41

8

Q11

9

Q21

9

Q31

9

Q41

9

Q12

0

EBIT excluding NRI (EUR 1,000) EBIT-% excluding NRI Mid-term EBIT-target ≥15%

62%17%

22%

58%

42%

SALES SPLIT Q1 2020

6

SBU11.5 NET SALES €m

-20.3 Y-O-Y CHANGE-%

MBUNET SALES €m 8.4

Y-O-Y CHANGE-% -2.3

BY BUSINESS UNIT ›

-13.9-12.7-13.6 Y-O-Y CHANGE-%

APACAMERICAS

EMEA

BY REGION ›

NET SALES

19.9€m

NET SALES

19.9€m

27.4.2020 Detection Technology | Business review January-March 2020

KEY FIGURES

27.4.2020 Detection Technology | Business review January-March 20207

Q1 2020 Q1 2019 FY 2019

Net sales, EUR 1,000 19,917 23,053 102,480

Change in net sales, % -13.6% 19.3% 9.1%

Operating profit, EUR 1,000 1,181 3,855 17,019

Operating margin, % 5.9% 16.7% 16.6%

R&D costs, EUR 1,000 2,618 2,499 10,706

R&D costs, % of net sales 13.1% 10.8% 10.4%

Cash flow from operating activities, EUR 1,000 3,387 5,047 11,599

Investments, EUR 1,000 695 707 4,041

Earnings per share, EUR 0.06 0.25 0.87

27.4.2020 Detection Technology | Business review January-March 20208

STRATEGY ›Received customer validation for X-Panel, start of sales for dental applications in Q2 2020

Strengthened its competitive position in the line-scan segment thanks to Aurora

Progressed with the key projects of the multi-energy (ME) product line, aims to start commercial production by the end of 2020

Started deliveries to customers from its new production and service site in Wuxi, Greater Shanghai area

BUSINESS OUTLOOK

27.4.2020 Detection Technology | Business review January-March 20209

5%MEDICAL MARKET

annual growth rate

6%SECURITY MARKET

annual growth rate

5%INDUSTRIAL MARKET

annual growth rate

ASIA-PACIFIC IS THE FASTEST GROWING MARKET

• COVID-19 has disrupted market dynamics, DT opines that, apart from medical CT imaging, annual growth will remain lower than the aforementioned industry estimates in 2020.

• Expects lower demand in the security segment to continue and a slight growth in the industrial segment in Q2 and H2, and SBU sales to decrease in 2020.

• Estimates demand in medical CT applications to remain at a good level in Q2 and H2, and MBU sales to increase in 2020.

• The COVID-19 pandemic creates extraordinary uncertainty in the global economy, and the predictability of the market is lower than usual.

27.4.2020 Detection Technology | Business review January-March 202010

FINANCIAL TARGETS › MEDIUM TERM

Annual sales growth

>10%

MEDIUM TERM

Operating margin

≥15%

ANNUAL

Dividend or returned capital

30-60%