Questions and answers related to Interim Review January-March 2016

April 27, 2016 4:30 PM

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