Definition Major Orders KA/Group Business Control

Document Information Title: Definition Major Orders Description: Responsible: KA/Maria Westlin Valid as of: 1 September 2010 Reviewed: 31 January 2013 Reviewed: 17 May 2017

Background Need to understand and draw conclusions from the order intake development compared to previous year, internally as well as externally In order to get a better underlying view of the development order intake is adjusted for Major orders Need to specify what should be treated as a Major order and how “big” a Major order should be Adjustments for major orders is used in: Interim reports Geographical reports of order intake Quarterly Management reports to SAB Board and GEM Monthly Management reports to SAB Board and GEM

Definition Major Orders Orders that distort the comparison between periods “One-off” character that is not repeatedly coming back Order value above SEK 200 M Not necessarily project based

Reporting Requirements Business areas SMRT and SMT are required to report larger orders above SEK 200 M, information should be sent to KA/Group Business Control on the third working day and include: Product Area/Customer Segment concerned Order specification Customer Country where the order was booked Order value in SEK M Information should also be included in the monthly-/quarterly comment To analyze the price/volume effect compared to previous year Major orders from previous year also need to be excluded

Example Example: 2008 2007 Order intake reported 1 300 700 SMRT, Surface Drilling & Exploration, booked an order of conveyor system for iron ore to customer CVRD in Brazil, SEK 400 M 2008 2007 Order intake reported 1 300 700 Major order (MO) - 400 Structure -200 Order intake excluding MO Currency -1% Price/volume change 59 % Price/volume change excluding MO 1 %