Definition Order Cancellations KA/Group Business Control

Document Information Title: Definition Order Cancellations Description: Responsible: KA/Ruth Forsström Valid as of: 1 September 2010 Reviewed: 1 September 2012

Background There is a need to understand and draw conclusions from the development of order intake both internally and from the external markets Timing issue – Order cancellations seldom occur in the month in which the order itself is received, i.e. there is a timing issue. A cancellation will affect a future month and dilute the total order intake in that month In order to get a better underlying view of the development in a certain period we adjust the order intake for order cancellations. However, in our analysis we only need to comment on major order cancellations Order cancellations may be presented in: Interim reports Quarterly Management reports to SAB Board and GEM Monthly Management reports to SAB Board and GEM

Definition Order Cancellations Order cancellations are tracked by KA through the backlog reporting Definition of an order cancellation: Cancellation of orders from customers, regardless of when the orders were originally received and reported The analysis of order cancellations does not encompass movements in the backlog caused by: Price changes that affect the order backlog Credit notes issued during the period, regardless of when the corresponding deliveries were made Major order cancellations are defined as order cancellations that materially affect the order intake for a period

Reporting Requirements For business reporting purposes (BA comments), each BA shall report any major order cancellations and specify: Geographical region Market segment and product category Name of Company Amount in SEK M