half-yearly report q2 2017 - detection technology · 2017. 7. 26. · highlights q2 2017 2 20.4 net...

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HALF-YEARLY REPORT Q2 2017 PRESIDENT AND CEO HANNU MARTOLA | DETECTION TECHNOLOGY PLC | 26 JULY 2017

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Page 1: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

HALF-YEARLY REPORT Q2 2017PRESIDENT AND CEO HANNU MARTOLA | DETECTION TECHNOLOGY PLC | 26 JULY 2017

Page 2: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

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

Page 3: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

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€

Page 4: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

NET SALES

4

(EUR 1,000)

+16.8%(YOY)

26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017

0

5 000

10 000

15 000

20 000

25 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2015 2016 2017

Page 5: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

EBIT-% AT TARGET LEVEL

5

(EUR 1,000)

26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017

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%

Page 6: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

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

Page 7: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

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

Page 8: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

46%

30%

24%

Asia

Americas

Europe

Q2 SALES TRIPLED IN AMERICAS

8

NET SALES

20.4M€

-30%+314%+100%

CHANGE-% YOY

26/7/2017 DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2017

Page 9: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

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

Page 10: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

• 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

Page 11: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

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

Page 12: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined

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

Page 13: HALF-YEARLY REPORT Q2 2017 - Detection Technology · 2017. 7. 26. · HIGHLIGHTS Q2 2017 2 20.4 net sales, M€ 16.8 net sales growth -% 4.1. EBIT, M€ 20.3. EBIT-% SBU-sales declined