HALF-YEARLY REPORT Q2 2017PRESIDENT AND CEO HANNU MARTOLA | DETECTION TECHNOLOGY PLC | 26 JULY 2017
HIGHLIGHTS Q2 2017
2
20.4net sales, M€
16.8net sales growth-%
4.1EBIT, M€
20.3EBIT-%
SBU-sales declined as the demand slowed down in China
Balanced net sales split by businesses, regions and application areas
MBU had a strong growth due to successful ramp-up and shipments
26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017
Ahlström Capital acquired all G.W. Sohlberg’s shares in DT
Operating cash flow increased to EUR 4.4 million
HIGHLIGHTS H1 2017
3
7.80EBIT, M€
26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017
19.5net sales growth-%
19.9EBIT-%
39.2net sales, M€
NET SALES
4
(EUR 1,000)
+16.8%(YOY)
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0
5 000
10 000
15 000
20 000
25 000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
EBIT-% AT TARGET LEVEL
5
(EUR 1,000)
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8,3 %
6,0 %
8,6 %
16,0 %14,9 %
18,3 %
21,4 %22,3 %
19,6 % 20,3 %
0%
5%
10%
15%
20%
25%
0
1 000
2 000
3 000
4 000
5 000
6 000Q
115
Q21
5
Q31
5
Q41
5
Q11
6
Q21
6
Q31
6
Q41
6
Q11
7
Q21
7
EBIT excluding NRI (EUR 1,000) EBIT-% excluding NRI Mid-term EBIT-target ≥15%
64%
36%MBUMEDICAL
BUSINESS UNIT
OUR BUSINESSES IN Q2 2017
6
SBUSECURITY AND INDUSTRIALBUSINESS UNIT
13.1 NET SALES M€
-12.6 YOY CHANGE-%
NET SALES M€ 7.3YOY CHANGE-% 193.9
NET SALES
20.4M€
26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017
64%
36%MBUMEDICAL
BUSINESS UNIT
OUR BUSINESSES IN H1 2017
7
SBUSECURITY AND INDUSTRIALBUSINESS UNIT
25.2 NET SALES M€
-6.3 YOY CHANGE-%
NET SALES M€ 14.1YOY CHANGE-% 135.9
NET SALES
39.2M€
26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017
46%
30%
24%
Asia
Americas
Europe
Q2 SALES TRIPLED IN AMERICAS
8
NET SALES
20.4M€
-30%+314%+100%
CHANGE-% YOY
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9
(EUR 1,000) Q2 2017 Q2 2016 H1 2017 H1 2016 2016Net sales 20,375 17,451 39,239 32,823 75,509Net sales growth, % 16.8% 87.8% 19.5% 79.7% 76.5%Operating profit 4,131 3,189 7,821 5,475 14,808Operating margin, % 20.3% 18.3% 19.9% 16.7% 19.6%R&D costs 1,856 1,155 3,385 2,778 6,071R&D costs, % of net sales 9.1% 6.6% 8.6% 8.5% 8.0%Cash flow from operating activities 4,376 -1,525 5,491 -1,200 5,412Capital expenditure 821 133 1,145 1,008 1,612Earnings per share, EUR 0.25 0.18 0.44 0.28 0.81
KEY FIGURES
26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017
• Focused on ensuring sufficient shipments and production capacity
• Completed the expansion of Beijing factory to meet the demand in the medium term and to enable even higher flexibility for volume and product mix changes
• Won new customers and projects
• Continued to broaden the technology base
• Introduced number of standard X-ray detector systems for industrial applications
10
STRATEGY IMPLEMENTATION
26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017
MEDICAL MARKET ANNUAL GROWTH RATE
5%SECURITY MARKET
ANNUAL GROWTH RATE
7%INDUSTRIAL MARKET
ANNUAL GROWTH RATE
5%
BUSINESS OUTLOOK
11
ASIA-PACIFIC IS THE FASTEST GROWING MARKET
• Growth to continue but expected to be more moderate than in H2 2016• There is uncertainty with the demand for the rest of the year as competition
tightens and affects product prices.
26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017
FINANCIAL TARGETS UNCHANGED
12
MEDIUM TERM TARGET
Annual sales growth
>15%
MEDIUM TERM TARGET
Operating margin
≥15%
ANNUAL
Dividend or returned capital
30-60%
26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017