BUSINESS REVIEW Q3 2017PRESIDENT AND CEO HANNU MARTOLA | DETECTION TECHNOLOGY PLC | 25 OCTOBER 2017

Q3

2017

2

22.2net sales, M€

16.1net sales growth-%

5.1EBIT, M€

22.9EBIT-%

SBU sales declined as demand peak for logistics segment levelled off in China

More balanced sales split by businesses and applications

MBU had a strong growth due to continued demand in Americas

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Business developed better than expected

Growth continued in acompetitive market

1-9

2017

3

12.9 EBIT, M€

18.3net sales growth-%

21.0EBIT-%

61.5 net sales, M€

25/10/2017 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-SEPTEMBER 2017

NET SALES

4

(EUR 1,000)

+16.1%(YOY)

0

5 000

10 000

15 000

20 000

25 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017

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EBIT-% AT TARGET LEVEL

5

(EUR 1,000)

8,3 %

6,0 %

8,6 %

16,0 %14,9 %

18,3 %

21,4 %22,3 %

19,6 % 20,3 %

22,9 %

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

Q31

7

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

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MBUMEDICAL

BUSINESS UNIT

OUR BUSINESSES IN Q3 2017

6

SBUSECURITY AND INDUSTRIALBUSINESS UNIT

13.3 NET SALES M€

-5.2 YOY CHANGE-%

NET SALES M€ 8.9 YOY CHANGE-% 74.8

NET SALES

22.2M€

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60%

40%

MBUMEDICAL

BUSINESS UNIT

OUR BUSINESSES IN 1-9 2017

7

SBUSECURITY AND INDUSTRIALBUSINESS UNIT

38.5 NET SALES M€

-5.9 YOY CHANGE-%

NET SALES M€ 23.0 YOY CHANGE-% 107.8

NET SALES

61.5 M€

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63%

37%

61%

29%

10%

Asia

Americas

Europe

Q3 SALES DOUBLED IN AMERICAS

8

NET SALES

22.2M€

+3%+106%-22%

CHANGE-% YOY

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9

(EUR 1,000) 7-9 2017 7-9 2016 1-9 2017 1-9 2016 2016Net sales 22,234 19,159 61,473 51,982 75,509Net sales growth, % 16.1% 105.9% 18.3% 88.5% 76.5%Operating profit 5,084 4,096 12,905 9,571 14,808Operating margin, % 22.9% 21.4% 21.0% 18.4% 19.6%R&D costs 1,977 1,034 5,362 3,812 6,071R&D costs, % of net sales 8.9% 5.4% 8.7% 7.3% 8.0%Cash flow from operating activities 5,378 1,624 10,869 424 5,412Capital expenditure 0 232 1,145 1,240 1,612Earnings per share, EUR 0.29 0.22 0.74 0.51 0.81

KEY FIGURES

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• Won new customers and projects

• Invested in developing new technologies

• Focused on renewing its information systems to support more effectively the growth targets – ERP, PDM and PDC projects ongoing

10

STRATEGY IMPLEMENTATION

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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

• Moderate growth to continue during Q4 2017 and Q1 2018• There is uncertainty in demand as competition intensifies, and this is

reflected in product prices.

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FINANCIAL TARGETS UNCHANGED

12

MEDIUM TERM TARGET

Annual sales growth

>15%

MEDIUM TERM TARGET

Operating margin

≥15%

ANNUAL

Dividend or returned capital

30-60%

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