Welcome to KONE's Second Quarter Conference Call. We have, again, many good news to tell. I will start naturally, again, today with the numbers of the quarter. And after that, I will tell how the markets have developed. And finally, I tell about the market outlook and our business outlook to the full year 20 10.
Let's start with the quarter 2 numbers. I would first like to say that all of the business performance development during the quarter 2 was good, and it was particularly so in June, both in terms of what comes to orders received as well as to operating income. The development in orders received was delighting. The growth was 9.3%. In comparable currencies, euros 3,700,000,000 and we went above €1,000,000,000 to €1,000,000,000 for 2.8 €1,000,000,000 This was actually now the 3rd time in our history we had orders received above SEK 1,000,000,000.
And the order book went up 4.8% to close to SEK 4,000,000,000 and from the end year to year and from the end of last year, we are clearly up. In sales, we had a growth of 7.7 percent. And in comparable currencies, 2.6 percent. And we reached €1,258,000,000 Another very good news in Allison Door received was in operating income where we had a growth of 20.1%. The currencies, of course, a factor also here, but that's not at all the most significant factor.
We have calculated that the favorable currency moves represented close to 25%, close to 1 quarter close to 25% above the operating income growth in quarter 2. And hence, we reached €175,000,000 So just to be clear, when we take €146,000,000 away from €175,000,000 and then take close to one close to 25% of that, then we get the currency impact. And in relative terms, the operating income reached 14%, which was clearly up from last year's 12.5%. Percent, and this 12.5 percent was excluding the onetime cost related to the fixed cost adjustment program. Cash flow continued to be strong.
It was at last year's SEK 200,000,000 strong level. Then let's move to the longer period, 6 months, January, June. And also in this period, orders received was positive both in comparable currencies and historical currencies, where it was 4.6%. And we went up close to 2,000,000,000. And order book about the order book, I already mentioned.
Sales growth was 3.3%, just slightly positive in comparable currencies. And operating income also for the whole first half was about 20%, more exactly 19.7%. And I would like to I already mentioned what factors in quarter 2 were behind the good growth. And the factors I only mentioned about currency, and now I would like to add that the real factors contributing this growth were our strong growth in Asia Pacific. And in addition to that, the good progress in the quality and productivity the operational quality and productivity and the active and continuous work in developing our service business.
In addition, also the sourcing cost were at a lower level. And of course, it was pretty much the same factors that contributed also during the whole first half. The operating relative operating income went up from 10.8% to 12.6%, and cash flow was nicely above the last year's strong level, now reaching almost EUR 420 1,000,000 Now our business typically has been strongly our business performance or, let's say, profit has been typically strongly second half weighted. So it will be also this time this year, but we estimate that it will be somewhat less second half weighted than what it has typically been during the previous years. However, because of the strong first half and because of the favorable currency moves and especially because of the strength of our Asia Pacific business, we have decided to upgrade the full year outlook, and I will later come back to that more accurately.
Next, about let's say, more in detail about the development of orders received, sales and operating income and over the different quarters over the last few years. And let's start with the orders received. Here in this picture, you'll see clearly that the only two quarters when we have been above this Q2 2010 level, have been the 1st and second quarter in 2008 where the global market was at its top level. The orders is at growth was clearly driven by Asia Pacific. Also in Europe, Middle East and Africa, the orders level was good.
It was better in the Central and Northern Europe and somewhat weaker in Southern Europe. In Americas, the orders development was negative. The sales growth was good at 7.7%. And as I mentioned, it was also, let's say, also currency favorable currency move helped also here. Also sales growth was clearly high Eastern Asia Pacific, and I will come back later to that.
But here, I think we have the main news this time because this picture clearly shows that how strong and solid the operating income growth has been in our business. It clearly also demonstrates that the approach that we took in the spring of 2,008 when facing the financial global financial crisis has been working well. That has been a good approach. And the key point there is that our strong progress in Asia Pacific Markets has largely compensated the significant decline in new markets in Europe and Middle East and Africa and North America. That is a big thing.
Then in parallel to that, we have been able to, all the time, develop our operational quality and productivity and actively developed our service business. And hence, this has resulted in continuous good growth in operating income. I have been I have to say that I'm particularly pleased at the moment about the good development of the new equipment activity. And you can see the, let's say, full picture here because as you see, the sales of new equipment represented the same 45% of KONE sales than it represented 1 year ago. And this has been achieved, although the European and North American New York to markets have significantly dropped down.
At the same time, service business continued to be at 55%. The maintenance business continued to develop well. And on the other hand, modernization now specifically in while this full picture is about the first half of this year, I would specifically comment that in the second quarter, the modernization orders and sales were slightly down orders because of the different seasonality that we are forecasting this year and in sales because of the changes in the business mix towards bigger share of large modernizations. But I am equally pleased with the right hand of the picture because here, you see that how the share of Asia Pacific in our sales has grown from 16% last year to 20% this year in the first half. And many of you remember that it was just a few years ago when we were at 9%.
This strong progress in the Asia Pacific market, that really has been one of the key cornerstones, if not a key cornerstone, in how we have been able to manage over the difficult period, at least so far, pretty smoothly. I have to say that these pictures, they tell a lot, and I'm very pleased about this overall development. Next, I would like to tell you briefly about the development in different markets. And let's start from Europe, Middle East and Africa. Maintenance markets developed well in quarter 2, but the markets remained very competitive.
Modernization markets were stable. They were at about last year's level. Newmarket markets developed, I would say, just in line with our expectations. So they really stabilized in most countries. And we also saw more and more growth or let's say, growth in more and more countries in residential segments, especially in Germany, U.
K, Sweden, Finland and Poland. Many of you remember that already in quarter 1, there was some growth in residential and some markets like, for example, Sweden and Finland. Also, some of the big Southern European countries like France and Italy, which still had declining residential market in quarter 1, That market stabilized in quarter 2, but naturally at a rather low level. Southern European markets overall remained weak in new equipment, especially Spain, which continue to decline. The Spanish market in new equipment really is at a low level.
The commercial segment in most European countries continues to be at a low level because of the high vacancy rates. On the other hand, markets in Middle East, particularly in Abu Dhabi and Saudi, developed positively. Also, in some countries, in Middle East, at least in Qatar and Abu Dhabi, there were there was a tightness in getting financing to some private sector investments. It's clear that in Middle East, they now try to avoid similar kind of risk concentrations that was the fact in Dubai then earlier on. This was about Europe, Middle East and Africa.
Next, briefly about Americas market, which also developed rather well in maintenance, but the market was, however, very competitive. In modernization market, the market in the U. S. Increased somewhat and remained stable in Canada, but in new equipment. Even though the new equipment market started to show signs of stabilization in the U.
S, it remained challenging and uncertain. So it is at a low level at the moment. And it is still a question mark in what speed and how the U. S. New market will recover.
Tendering activity in infrastructure and publicly funded projects improved. In Canada, the new markets continue to recover. And actually, the market in Canada, which has not been so bad at all during the last couple of years, was is now rather active. In Mexico, the recovery is ongoing but rather slowly. But then we move to the market area that is most active at the moment, which is Asia Pacific.
There, modernization and maintenance markets continue to develop favorably. And in new equipment, I would like to tell you about the different countries separately because there is quite a lot to tell. In China, first of all, all segments continue to grow. The growth was best in the residential segment and especially in the affordable housing segment. But also, the commercial segments developed well.
Now all of us here quite often questions what will happen in the real estate area in China. That will there be a construction bubble? Will there be a dramatic drop? We have now a good possibility to follow this development very closely because altogether, we are we have almost 200 different offices in China, all over the country and also improving market position so that we see quite well what how the different markets in different difficult areas of China are developing. And our and of course, the development of especially this market has been during the last few years altogether very important for us, and we have to try in all ways understand it well.
And this is how we see it. First of all, the construction market growth was at an exceptionally high level last year and during the first half of this year. And it is clear that because it has been at such a high level that it could not continue, I mean, the growth to stay at that level. And therefore, during the last 9 months, and we can later discuss that if you like so, the government has taken many actions to slow down growth in a manageable way. And we have already started to see the first results of these actions.
First of all, the sales times of buildings and apartments, they have started to become longer, somewhat longer, but not dramatically longer. The next step typically in this kind of process is that the prices start to go down. And during the last weeks and last months, we have started to see first signs of that. Then what next happens is that the volume growth starts to go down. At the same time, we have to understand the key driver, which is urbanization.
And because and that how important urbanization is not only from the economic development, but also in other aspects in developing China. And the urbanization was in the first phase, fastest growing in the East Coast. Then during the last 2 to 3 years, the fastest growth has moved to the inner part of China. And now we see that increasingly, it will move to the Western parts of China. And this is what is going on.
And also, for sure, there are some segments where there is clearly too much, let's say, unsold apartments, for example, in the Luxury segment in the East Coast at the moment. When we take the full picture, we think that it is high probability that this transition to a slower growth in the construction market in China will be managed well, so smoothly. And hence, we see that the market growth also in the second half in China this year will be good and that it will continue to be a very attractive market for KONE also in the future. Then India, another Asian big and attractive market. You remember that it started to develop again more positively in September, October last year, and that good development has continued.
It has continued especially in the residential segment and in the same way as in China, particularly fast growing in the affordable housing segment. The office segment activities are still at a low level in India. Australia has been a good market this year. However, the tendering activity has somewhat decreased in the major projects due to financing cost range. In Southeast Asia, the market activity has continued to increase and especially in the residential segment.
So this means that a lot of positive development in Asia Pacific. That's about the market development. And next, I would like to come back briefly to how we are systematically developing our competitiveness. And here, you'll see the 5 development programs, what are the basis of our competitive progress in competitiveness at KONE. Now these are the this is a set of 5 programs that we started to work with 2.5 years ago.
And I have to say that I am at the moment particularly pleased that one of these five has been people leadership. And as part of that program, we have invested even more than in the past at KONE to developing people's leadership skills. And that has nicely helped us to keep the nice, good fighting spirit and overall, of course, good spirit at KONE also during this years with a difficult economic environment. Now as many of you remember, we decide every 3 years what are the most attractive five what is the most attractive combination of 5 development programs to enable to create further possibilities for profitable growth at KONE and hence, what is the best way to long term value creation at KONE. And this means that beginning of next year, we will start with a new set of 5.
And while we continue during the second half of this year with the many initiatives we have under these programs, at the same time, we are working actively on what will be the new set of 5 programs when moving on. Then about market outlook. The first comment is that the market development so far this year has been, I would say, exactly in line what we expected and what was in our outlook in January. Now the rest is this is true also for the rest of the year, but because we are now in the middle of the year, we are able to tell that to communicate that more accurately. And we say that the new markets in Asia Pacific are expected to continue to grow, but at a lower rate than during the first half when that growth was at an exceptional level as I discussed, especially related to China.
In Europe, Middle East and Africa and North America, the markets have started to stabilize, but the market environment remains uncertain as discussed, and recovery is expected to be slow. If it is faster, then we will be positively surprised. The modernization markets are expected to be at about last year's level. The maintenance markets are expected to develop well but remain very competitive. So this is how we see the market development towards the end of the year, and this is then the business outlook, which we have upgraded from what we gave in April.
What has happened since April is that our that the Asia Pacific market in the spring was stronger somewhat stronger than what we expected. Our progress has been very strong there. So this is one factor. And the second factor that we could not see naturally is are the currency movements. And this, combined the overall good progress, have led us to upgrade the full year outlook, both in net sales and operating income.
In net sales, our previous forecast was that our net sales growth would be between 0% -five percent. Now we say that Konez net sales is estimated to at approximately the same level as in 2,009. In operating income, our previous estimate was that we will reach €580,000,000 to €620,000,000 Now we say that the operating income is estimated to be in the range of SEK630,000,000, 660,000,000 This is what I wanted to start with. And then we have time for questions. And we have here also Henrik Enrut, our CFO, who is also ready to answer your questions.
So Carla, please.
Thank you. Let's start with questions from those present here. Would you have any questions or?
Sanzor. Sanzor, it's me, Carnegie. Really two questions on the order development geographically. That one, in Americas, you seem to continue to show declining orders despite the support from the foreign exchange. Are you disappointed by the development in the Q2?
And then conversely, in Europe, new equipment orders specifically look to have expanded in the Q2, which is maybe a bit more or would suggest a more positive development than your market description?
Well, that is how the life goes. So always something goes a little bit better than something and so on. What comes to the Americas? If you look back to last year, one of the positive surprises during the first half in orders received was that we were able to keep our orders received at a flat level even in first half of two thousand and nine, at a very high level. Therefore, now during the first half of this year, our point of comparison has been very, very demanding.
And growth in Americas. In Europe, the I have to say that in Central and Northern Europe, we can be quite pleased with the Orasys development in several countries. As said, the Southern European markets, especially new equipment, they are they continue to be quite weak.
Pekka Sponen from Pohagal Bank. About the price competition you refer in the report quite many times to the tight competition. Have you seen any changes in the second quarter? Or is the situation roughly same as it was during the earlier quarters?
In this kind of, let's say, market phase, it is quite obvious that the price competition has been also in or particularly in new equipment, it has become somewhat tougher over time. But this is the situation in global competition that it is necessary all the time to develop the product portfolio in order to be ready to be competitive even in tightening competition. So for all of our teams, the last couple of years, they have been a very active period.
The Q2 end order backlog was clearly higher than a year ago, and you also mentioned that the margins in the order book have remained stable. Yet you warned that the uncertainties in the Western markets could reflect on periods after 2010. Is that just to say that if something goes wrong in the Western market, it won't have an effect on this year? Or what are you referring to?
Okay. So 1st of all, I think that also there is we can see some positive development in the European economy at the moment. There are questions mark even there still. And then secondly, naturally, construction industry has developed in very different ways in different European markets. So that, for example, Germany has been at a rather stable level now last 2 to 3 years all the time, the other extremes being Spain, U.
K. Being in between. I think that one of the ways to understand this is that as we see it in quarter 2, quarter 2 was a quarter where a lot of our activities went very well. Also in orders, this was, in our opinion, a good achievement in this environment. And we just want to naturally remind because it is true that in the construction market and hence in new markets in Europe and Americas, there are still uncertainties.
Another question, if I may. How big a share of the Q2 orders did Asia Pacific represent?
Last time, we were asked that how big part of the orders did China represent. And okay. And we are prepared to answer to that. And China represented, when we take when we include both new equipment and modernization, China was the same 20% of the orders received as in quarter 1.
Okay. Thanks.
Any further questions from the person present here? Okay. Let's take one more and then let's give the opportunity for those on the line.
Good.
Yeah, when you say that sourcing costs help the profitability, are you primarily referring to the kind of structural measures you've taken on the purchasing side? Or was there something specifically related to the kind of price development market price development of input costs in the first half?
I'll add that one. So that we are referring to the material cost development. And naturally, though the raw materials, they have their own cycles and developments, and they were at favorable levels. As we have communicated, we naturally have all the time tried to minimize variations with fixed contracts. But still, this was a favorable period also from that perspective.
Then in addition, I have to say that one of the big transformation areas that we have had at Konevio in the last few years has been sourcing. So the competence and capability level of our sourcing team and the supplier relationships, all of that naturally is has developed a lot and helps a lot. So if we try to separate internal factors and external factors, sourcing has a combination always.
Okay. Let's turn to questions from the conference call.
The first question comes from the line of Mr. Bernie Horne from Polaris Capital Management. Please go ahead with your question, sir.
Yes. I have a question on the residential market development. If we use the U. K. As an example, it appears the construction activity there has shifted somewhat from the kind of multi storey apartment type housing units to more single family kind of standalone.
And I'm wondering if you've noticed this in your order book and whether or not the same pattern might be shifting to other geographic areas.
Hendrik, would you like to answer this?
Yes. So I think we commented that there was a favorable development of the residential sector in the U. K. And then I think we specifically referred to the segment that is addressable to us. I don't think that this is necessarily a trend that at least we have actively seen.
We, of course, mainly follow the segment that is the one addressable to us, I. E, multistory dwellings.
Okay. Thanks very much.
There are no further questions from the telephone.
All right. Then we would have an opportunity to have take more questions from those of you present here in Helsinki in Espoo, sorry, Finland. Any further questions? Then let's check whether we have questions on the line. Do we have any further questions on the line?
Yes. We will see the question from Erik Ejvedt from ABG Sundal Kondir. Please go ahead with your question.
Yes. Good afternoon. This is Erik Ejvedt from ABG. Just one question really on the EBIT in the quarter, euros 176,000, obviously a very strong margin. Does that number include any currency hedge effect, any revaluations on working capital, any corporate items or anything that we should be aware of given that the mix seems to be the same year over year in terms of aftermarket versus new equipment?
So anything that you could point out that explain this strong margin?
Henrik, please. Yes. This is a clean EBIT, so there are no one off items such as ones you mentioned. I think Matti went through in his presentation quite in detail the reasons for the improvement. And of course, currency translation rates is a factor.
But as Matti said, that is close to 25% of the improvement year on year. So most of it is then the other factors that were mentioned, such as growth in Asia Pacific, operational quality and productivity.
And Service
Business Development. And Service Business Development.
Excellent. Thank you very much.
There are no further questions.
Okay. We have a couple of questions here. So, Sasol?
Market shares in China, any changes, I'm not specifically referring to your own share only, but any structural development in the market? And then the development of your maintenance contract base, both in Europe and in China?
The market shares so first of all, we our policy really is to communicate about market shares only annually. Because in the middle of the year, it's too short a time. But it is clear that during the first half, again, our growth in China has been faster than the market. And we have been one of the fastest growing companies in our industry in China. Otherwise, I would say that looks like also the other top three top 4 other top 4 companies.
The other 3 of the top 4 companies have been doing rather well. So the distance between the leading 4 and then the others is a big distance. And then another comment is that we have also this, as you remember, this 40% share in Giant Kone. And Giant Kone has continued to be one of the winners, which also is good news. Then regarding what comes to the development of the maintenance space.
The maintenance growth has continued to be globally at our typical good level.
Pekka Sponner from Bojela. Could you comment on working capital and cash flow? What should we expect? Because it seems to me that the development has been once again very, very strong, so it's not an exceptional item anymore.
Henrik? So that's right. So our working capital has continued to improve. It, of course, improved less now in the quarter than in the first quarter. So if you look at the first half of the year, most of the improvements were in the Q1.
And there are the reasons behind that is that we have been able to maintain good payment terms, which means that advanced advanced payments received have continued to increase and been able to manage our work in progress. I would say that the level of working capital we now have is one where that is a very good level. So our target is to maintain a good level, but I think it's with the level we have now, it's difficult to improve it much further. So that's why the very strong level we have had is unlikely to continue at the same pace. Our net working capital at the end of the quarter was minus €338,000,000 So it was an improvement of €8,000,000 from the 1st quarter.
Do we have any further questions on the line?
Yes. We received a question from Mr. Erkki Beola from Swedbank. Please go ahead with your question. Erkki, your line is open.
Yeah. Good afternoon, Erkki from Swedbank. Regarding currencies, I'd like to ask is the sales guidance that you have given is based on current spot rates? I mean, if you see euro rate remains in the current level, we're going to see a clear favorable ForEx effect year on year towards the end of the year? That's the first part.
And how should we see your hedging actions towards the end of the year or the effects of those?
Okay. So the way we forecast is that we 1st and foremost always look at the average rate we have for the year, which is the consolidation rate also we have for the income statement. Of course, in a volatile situation such as the one we have right now, we have to look at many different factors. And if we now look at, in fact, at most of our major currencies, so the average rate year to date and where we are spot today is actually not that big of a difference because the euro has now just in the past couple of weeks again strengthened. So I would say that the exchange rates we have used is not too far away from where the current spot rate is.
And then when it comes to our hedging actions that we are continue to follow our hedging policy whereby we hedge our the currency risk, the transaction risk in our projects. So there's no change in that, and we continue to follow our normal policy in that respect.
The next question comes from the line of Mr. Klas Bergelin from Royal Bank of Scotland. Please go ahead with your question.
Yes. Hello. This is Klas Bergelin from RBS in London. I have one question on that you say that this time it will be different, that you will not be second half weighted in terms of EBIT. Could you just update us on why this
is the reason, bearing in
mind that you still talk about quite healthy growth rates in Asia Pac, which I would say that, okay, more short cycle, shorter lead times than the rest of the business. So that could be sort of a reason for being cautious in the second half if that slows, but you don't see that. So I'm just a little bit curious about what you have to say in terms of why this will be different in this time, I. E. Not the second half weighted EBIT.
Okay. The first comment is that I said and we said that we are second half weighted in terms of result distribution also this year. But the message was that we are somewhat less 2nd half weighted this year and will be somewhat less 2nd half weighted this year than during the previous years. And why so? The key reason is that in Asia, part of our business has a faster cycle than our typical what our typical cycle is.
Yes, exactly. So it's more sort of being concerned that not concerned, but sort of reflecting the slower growth rather than seeing sort of a big slowdown in Asia.
Henrik, I could perhaps add here. It's partly also a mix question. So it's Europe, in particular, is the area where we have had more second half weighting and end of the year weighting than the rest of the world. So it's also a mixed question in our sales as Asia Pacific is a larger share now than it has been previously.
All right. Thank you.
Big picture and the key point.
The next question comes from the line of Mr. Bernie Horne from Polaris Capital Management. Please go ahead with your question.
Yes, thanks for the follow-up. I have a question with to the split between the business of escalators versus elevators and whether that's developing any differently in the mature markets versus Similar question on the mix of maintenance work as it goes from one geography to the other.
When it comes to escalators and elevators, so first of all, about the combined elevator escalator market, Escalator is a rather small part, about 10%. And the escalator market as such has been more active in the developing countries. But now with the stimulus package fees, escalators have been, let's say, more important in the more important because in these infrastructure process that has been that have grown because of stimulus, the escalators typically are a big element, big factor. And then your second question was about maintenance in developed markets versus developing markets. In naturally, a big part of our maintenance business at the moment is in about the whole maintenance market and about our maintenance business is in developed markets.
However, the growth also in maintenance business is faster in developing markets just because it follows the faster growth of the new equipment market. And we have been as we have said, we have been very active also in these developing markets, in developing a strong maintenance base and progress in that area over last years has been also very, very encouraging. So therefore, when we consider the importance of this fast progress in Asia, it will not be limited also only to new equipment, but also the service business will follow. All is following all the time with some delay.
And is the are the margins substantially different between the new sales new equipment sales escalators versus elevators? And the same question on the maintenance.
We have said that maintenance margins are higher than in new equipment. But as I discussed earlier in my present already in my presentation, one of the big things that we have been able to manage this recession well is that we have been able to develop the profitability of Novemiculant business in a very good way.
So the not quite sure, but the difference in margins between just new equipment escalator versus elevator, is there much of a difference in margin
between You asked that. Well, this is something we have not really communicated. We see the Nuviken business as a combination of elevators and escalators in solving our customers' needs.
And the so is it correct to assume that the proportion of escalator sales in the developing countries is about 10% as well?
It is let's say, the order of magnitude is that.
Okay. Thanks very much.
Thank you.
The next question comes from the line of Mr. Tom Skorgman from Handelsbanken. Please go ahead with your question.
Yes. Hi, this is Tom from Handelsbanken and congratulations on a good set of numbers. When I look into 2011, I know you don't comment on numbers or so on guidance, of course. But I was just wondering about how big part of your 2010 sales growth in service more or less is coming just from a natural inflow of the massive sales of new equipment you had last year in both in Europe and in Americas? And how much will this be down somehow?
I know you won't comment straight on numbers, but perhaps you could give open up this box because I'm a bit worried about price competition in service next year when the natural inflow of new equipment sold this year will be much smaller to the service book next year.
Why will it be?
Well, like you have told earlier that you have a 12 month lag before you book service revenues from a new equipment delivery. And my assumption at least is that new equipment sales in Europe and Americas will be lower this year than last year.
Okay. But as we discussed also the in a similar way, also the new equipment orders in Asia Pacific, they provide a similar potential for maintenance. So therefore, I don't see there much difference as such from the at least from the margins point of view. Of course, the key maintenance base is in trying to convert and developing our activities so that we are able to convert bigger and bigger share of our new equipment deliveries to maintenance contracts. And this has developed well.
Then the other elements of growth there, they are naturally mainly, let's say, winning new maintenance space from competition and then continuing with these maintenance company acquisitions.
Yes. I was just thinking about like Europe. In the Western European market and in Americas, I guess, still the inflow in your service business will be lower. Isn't that correct for next
year? Again, now when looking back, overall and these are not sure now overall numbers, but they also reflect to a certain extent the situation, especially in Europe, which in terms of maintenance business is clearly bigger than North America and also otherwise that now we had a quarter where we had a clear orders with growth. Then in the Q1 of this year Q4 of last year, the development was flat. And before that, we had a few quarters with some negative orders received development. And then we are again already, let's say, 15 months from the beginning of 2011.
The delivery you are right that we have communicated that in Europe, a typical delivery cycle is such that the delivery or sales completion is about 9 months from the order. In Americas, it is longer. In China, it is shorter. In India, it's longer. But in Europe, it is 9 months average.
There are no further questions.
All right. Do we have any further questions here? We would have time for 1 or 2 more questions.
Still, Tomi Rayla, SAP Skelter. Just a simple question on the second quarter in particular in terms of sales and orders. Was there something particular, bigger project completion, for example, in terms of revenue recognition? Or then in the orders, for example, you wrote that there has been activity picking up in major orders. But the level as such was, of course, surprisingly high.
But if I'm trying to get a sort of indication for the underlying activity and perhaps difficult to get, but indication for the second half.
What comes to orders, we had in major project orders in the second quarter, we had a better quarter than in the Q1 where we had a low level. However, even now in the Q2, it was not particularly high, not at all. So this means that equally as in the Q1, and we have been doing well especially in the big big in the volume business. And naturally, in a way, we take that ourselves or we adjust that ourselves as a positive factor because the competitiveness also there is going very well. And then what comes to sales, yes, we had some more bigger project, let's say, completions than what we had in the Q1, and that contributed nicely to the sales