PowerPoint Presentation...5%. SECURITY MARKET ANNUAL GROWTH RATE . 7%. INDUSTRIAL MARKET ANNUAL...

Q1 PRESIDENT AND CEO HANNU MARTOLA 25 APRIL 2018

2018 JANUARY-MARCH

2

Q1

2018 3.7

EBIT, M€ (3.7)

2.4net sales growth-% (22.7)

19.4EBIT-% (19.6 )

19.3 net sales, M€ (18.9)

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

Q1

2018

3

SBU-sales fell slightly due to timing of deliveries, especially in the Chinese market

Sales split was more even by key accounts, regions and applications

MBU had a strong quarter with growth coming from both North America and China

After an excellent 2017 sales started slowly

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

Profitability remained good despite increased R&D costs

NET SALES BY QUARTER

4

(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

2015 2016 2017 2018

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

OPERATING PROFIT

5

(EUR 1,000)

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

8.3 %

6.0 %

8.6 %

16.0 %14.9 %

18.3 %

21.4 %22.3 %

19.6 % 20.3 %

22.9 %

25.4 %

19.4 %

0%

5%

10%

15%

20%

25%

30%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000Q

115

Q21

5

Q31

5

Q41

5

Q11

6

Q21

6

Q31

6

Q41

6

Q11

7

Q21

7

Q31

7

Q41

7

Q11

8

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

MBUMEDICAL BUSINESS UNIT

OU

R BU

SIN

ESSE

SQ

1 20

18

6

SBUSECURITY AND INDUSTRIAL BUSINESS UNIT

11.8 NET SALES M€

-2.5 YOY CHANGE-%

NET SALES M€ 7.5YOY CHANGE-% 11.2

NET SALES

19.3M€ 61%

39%

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

51%

27%

22%

Asia

Americas

Europe

SALES SPLIT BY REGIONS

7

-9.2%+16.1%+20.4%

CHANGE-% YOY

NET SALES

19.3M€

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

8

(EUR 1,000) 1-3 2018 1-3 2017 1-12 2017Net sales 19,318 18,863 89,003Change in net sales, % 2.4% 22.7% 17.9%Operating profit 3,741 3,690 19,892Operating margin, % 19.4% 19.6% 22.3%R&D costs 1,948 1,529 7,157R&D costs, % of net sales 10.1% 8.1% 8.0%Cash flow from operating activities 5,205 1,154 18,625Capital expenditure 960 324 1,833Earnings per share, EUR 0.21 0.20 1.09

KEY

FIG

URE

S25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

• Product development projects and investments in new technology development as well as new customer acquisitions continued as planned

• Proceeded to implement the Enterprise Resource Planning System (ERP) and focused on finalizing the Product Data Management System (PDM)

9

STRA

TEG

Y

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

MEDICAL MARKET ANNUAL GROWTH RATE

5%SECURITY MARKET

ANNUAL GROWTH RATE

7%INDUSTRIAL MARKET

ANNUAL GROWTH RATE

5%

BUSINESS OUTLOOK

10

ASIA-PACIFIC IS THE FASTEST GROWING MARKET

• Expects H1 sales to grow in both business units, and to achieve double-digit growth in net sales• Estimates that H2 sales will stay at previous year’s level as a key customer stops manufacturing a

device that uses one of DT's products• Uncertainty in demand, and the intensified competition might be reflected in product prices• Protectionist trade policies may have an impact on the company's business

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

FINANCIAL TARGETS UNCHANGED

11

MEDIUM TERM TARGET

Annual sales growth

>15%

MEDIUM TERM TARGET

Operating margin

≥15%

ANNUAL

Dividend or returned capital

30-60%

25/4/2018 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2018

12

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