Questions and answers related to Interim Review January-March 2016
Apr 27, 2016
Why did the profitability (EBITA %) increase y-o-y? (Compared to Q1 2015)
- Profitability improved due to the higher level of net sales in Paper and Services business lines, improved gross profit, and the acquisition of Automation
Why did the profitability (EBITA %) decrease q-o-q? (Compared to Q4 2015)
- Lower business volumes especially in stable business
- In Automation, Q1 is typically the weakest quarter
Was Automation loss-making in Q1/2016, like in Q1/2015?
- No, we are satisfied with Automation’s development in Q1/2016
Why was the cash flow so weak in Q1/2016, only EUR 3 million?
- Payment schedules of large capital projects have significant impact on net working capital development: large payments to suppliers in Q1/2016.
Why did orders received in Services increase by 7%?
- Orders received increased in China and South America, and remained stable compared to the comparison period in EMEA, North America and Asia-Pacific.
- Orders received increased in Mill Improvements, Performance Parts and Fabrics, remained stable compared to the comparison period in Rolls, and decreased in Energy and Environmental.
- Key issues to grow services are related to increase long term agreements and being close to customers
Which are the most active areas from geographical point of view in Services?
- Orders received increased in China and South America, and remained stable compared to the comparison period in EMEA, North America and Asia-Pacific.
SG&As increased to EUR 130 million (EUR 104 million Q1/2015), how much was related to Automation?
- Increase related to Automation acquisition
- We have continuous focus on cost control
