Q3 President and CEO Hannu Martola 25 October 2019

2019

Business review

January-September

25.10.2019 DetectionTechnology | Business review January-September 20192

5.1 M€ EBIT (5.2)

9.5%net sales change-% (10.6)

19.1%EBIT-% (21.0)

26.9 M€ net sales (24.6)

Q3 2019 ›

3

Q3 2019 ›Q3 net sales outperformed market growth due to airport CT equipment demand, although MBU sales fell short of expectations

SBU sales growth of 42% was driven by security CT demand in all regions and explained also by low Q3 2018 sales

MBU sales decreased by -28% as a result of the softening of the medical CT market, production ramp-down of a product family important to MBU and the record high sales in Q3 2018

Profitability remained at a good level

25.10.2019 DetectionTechnology | Business review January-September 2019

NET SALES BY QUARTER

4

9.5%(YOY change-%)

25.10.2019 DetectionTechnology | Business review January-September 2019

(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 Q2 Q3

2016 2017 2018 2019

OPERATING PROFIT

5 25.10.2019 DetectionTechnology | Business review January-September 2019

(EUR 1,000)

14.9%

18.3%

21.4%22.3%

19.6%20.3%

22.9%

25.4%

19.4%

21.4% 21.0%

19.2%

16.7%17.5%

19.1%

0%

5%

10%

15%

20%

25%

30%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000Q

116

Q21

6

Q31

6

Q41

6

Q11

7

Q21

7

Q31

7

Q41

7

Q11

8

Q21

8

Q31

8

Q41

8

Q11

9

Q21

9

Q31

9

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

71%

8%

21%

69%

31%

SALES SPLIT Q3 2019

6

SBU18.6 NET SALES M€

42.3% YOY CHANGE-%

MBUNET SALES M€ 8.4

YOY CHANGE-% -27.6%

BY BUSINESS UNIT ›

20.4%-54.8%40.8% YOY CHANGE-%

ASIAAMERICAS

EUROPE

BY REGION ›

NET SALES

26.9M€

NET SALES

26.9M€

25.10.2019 DetectionTechnology | Business review January-September 2019

7

13.8 M€ EBIT (14.1)

13.5%net sales change-% (11.0)

17.8%EBIT-% (20.7)

77.5 M€ net sales (68.3)

Q1-Q3 2019 ›

25.10.2019 DetectionTechnology | Business review January-September 2019

65%

13%

22%

68%

32%

SALES SPLIT Q1-Q3 2019

8

SBU52.5 NET SALES M€

30.9% YOY CHANGE-%

MBUNET SALES M€ 25.0

YOY CHANGE-% -11.3%

BY BUSINESS UNIT ›

19.7%-20.0%26.6% YOY CHANGE-%

ASIAAMERICAS

EUROPE

BY REGION ›

NET SALES

77.5M€

NET SALES

77.5M€

25.10.2019 DetectionTechnology | Business review January-September 2019

KEY FIGURES

25.10.2019 Detection Technology | Business review January-September 20199

Q3 2019 Q3 2018 Q1-Q3 2019 Q1-Q3 2018 2018

Net sales, EUR 1,000 26,934 24,596 77,459 68,264 93,916

Change in net sales, % 9.5% 10.6% 13.5% 11.0% 5.5%

Operating profit, EUR 1,000 5,148 5,161 13,807 14,115 18,522

Operating margin, % 19.1% 21.0% 17.8% 20.7% 19.7%

R&D costs, EUR 1,000 2,602 2,083 8,046 6,445 8,839

R&D costs, % of net sales 9.7% 8.5% 10.4% 9.4% 9.4%

Cash flow from operating activities, EUR 1,000 3,328 1,152 3,240 5,758 6,122

Capital expenditure, EUR 1,000 775 1,374 2,182 3,595 4,741

Earnings per share, EUR 0.28 0.32 0.74 0.84 1.03

25.10.2019 Detection Technology | Business review January-September 201910

Q3 STRATEGY IMPLEMENTATION ›Implementation of the new DT-2025 strategic target and work on the strategy continued

Market interest in the Aurora and X-Panel product families accelerated

The number of active customers has increased from 240 at the beginning of the year to over 260

Medical Device Quality Management System (MDQMS) based on the ISO 13485:2016 standard was built and audited successfully for the X-Panel product family

Development of a new production and service site in Wuxi, Greater Shanghai area, proceeded according the plan

BUSINESS OUTLOOK

25.10.2019 Detection Technology | Business review January-September 201911

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

• Expects total net sales to grow in Q4, but growth to slow down • Uncertainties on demand and intense competition might be reflected in

product prices• Estimates market to grow according to the industry estimates in 2020

25.10.2019 Detection Technology | Business review January-September 201912

FINANCIAL TARGETS UNCHANGED ›

MEDIUM TERM

Annual sales growth

>15%

MEDIUM TERM

Operating margin

≥15%

ANNUAL

Dividend or returned capital

30-60%