1. Definition Order Cancellations
KA/Group Business Control

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

3. 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

4. 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

5. 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