1. Definition Major Orders
KA/Group Business Control

2. 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

3. 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

4. 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

5. 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

6. 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 %