Slide 1: A year of profitable growth
A year of profitable growth Year-end and Q4 report 2023/24 Gustaf Salford, President and CEO Tobias Hägglöv, CFO June 5, 2024 Restricted Information and Basic Personal Data
Slide 2: Important information
Important information This presentation includes forward-looking statements including, but not limited to, statements relating to operational and financial performance, market conditions, and other similar matters. These forward-looking statements are based on current expectations about future event
Slide 3: Q4 and full-year financials
Q4 and full-year financials Restricted Information and Basic Personal Data
Slide 4: Gustaf Salford
Gustaf Salford President and CEO Restricted Information and Basic Personal Data
Slide 5: Full year – key takeaways
Full year – key takeaways Net sales Increased by 5% with growth in all regions Adj. EBIT margin SEK 2,145 M (1,743) with an expanding margin to 11.8 percent (10.3) Product offering Elekta One software suite and Elekta Evo CT adaptive-Linac Cash flow Strong operating cash flow after continuous invest
Slide 6: Q4 – key takeaways
Q4 – key takeaways Net sales -2% – decline in mature markets compensated by growth in emerging markets Adj. gross margin 36.6% (37.8%) – unfavorable market mix and inflationary cost increases Adj. EBIT margin 13% (16.2%) – lower volumes and OPEX increase related to inflation and launches Order intak
Slide 7: Delivering on our strategy ACCESS 2025 in Q4
Delivering on our strategy ACCESS 2025 in Q4 Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resili
Slide 8: Accelerating innovation – adaptive across our portfolio
Accelerating innovation – adaptive across our portfolio *Elekta Evo is not available in all markets Non-Confidential Information and Basic Personal Data 8
Slide 9: ESTRO product launch - Elekta Evo and Elekta ONE
ESTRO product launch - Elekta Evo and Elekta ONE Driving adaptive CT-guided treatments • Online adaptive and easily upgradeable • Iris™ with high-definition AI enhanced imaging • Elekta ONE Planning, powered by MIM - AI-driven automation in contouring - Faster dose calculation and planning - Vendor
Slide 10: Elekta Evo – a unique position in the marketplace
Elekta Evo – a unique position in the marketplace Available on the market Versatile Offline Online Upgradable from offline adaptive adaptive to online adaptive Other workhorse linacs Other existing C-arm linacs Other online adaptive linacs Elekta Elekta Evo Marvel Evo alone provides both versatility
Slide 11: Elekta Unity
Strong Unity momentum from recent news and developments Workflow efficiencies being realized ➢ Example: 20 patients treated in one day in Australia – fully adapt-to-shape Adoption increasing continuously ➢ Example: another transition to Unity in Italy and strong momentum in India Clinical benefits ➢
Slide 12: ACCESS 2025 - providing radiotherapy access and increasing installed base
ACCESS 2025 - providing radiotherapy access and increasing installed base Our target for ACCESS 2025: +300M people Our progress heading into the last year: 260M people Restricted Information and Basic Personal Data
Slide 13: Tobias Hägglöv
Tobias Hägglöv CFO Restricted Information and Basic Personal Data
Slide 14: Full year – growth with margin expansion and higher EPS
Full year – growth with margin expansion and higher EPS (SEK M) FY 23/24 FY 22/23 Net sales increased by 5%1 Net sales 18,119 16,869 • Americas 1%, EMEA 6%, APAC 8% Solutions 10,633 9,981 - China grew despite the anti-corruption campaign Service 7,487 6,889 • Solutions 4% and Service 6% COGS2 -11,31
Slide 15: Q4 – tough comparables and slower market in Europe and the U.S.
Q4 – tough comparables and slower market in Europe and the U.S. (SEK M) Q4 23/24 Q4 22/23 Q3 23/24 Net sales decreased by 2%1 Net sales 5,023 5,125 4,537 • Slower market activity in Europe and the U.S. Solutions 3,060 3,325 2,742 • Growth in APAC despite negative impact from the anti- Service 1,963
Slide 16: Selective investments and non-recurring items
Selective investments and non-recurring items Quarterly expenses Y-o-Y comparison Expenses Q41 Q4 Growth2 Q31 Growth2 Selling expenses2 (SEK M) 23/24 22/23 Y/Y 23/24 Q/Q • Ramp-up of customer activities and commercialization of Selling -403 -389 5% -362 13% product launches Administrative -350 -307
Slide 17: R&D to ensure technology leadership and financial result
R&D to ensure technology leadership and financial result Major launches since FY19/20 R&D expenses as % of net sales 20% Elekta Brachy Elekta Elekta Elekta (RTM) Imaging CMM Harmony Esprit ONE EVO Ring 15% 12.2% 10% 7.7% 5% 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21/22 22/23 23/24 Gross R&D Net R&D 17 Rest
Slide 18: Cash conversion above target and operational cash flow higher
Cash conversion above target and operational cash flow SEK 497 M higher compared to last year Q4 Cash flow (SEK M) Operational cash conversion, RTM SEK M + SEK 497 M YoY 100% 3,000 441 -445 77% -900 76% 80% 2,500 -54 Target >70% 549 60% 2,000 1317 -412 1,500 930 40% 872 1,000 20% 500 1,964 1,611 2,2
Slide 19: Improvement in net working capital
Improvement in net working capital NWC as % of net sales (RTM) • Lower working capital (NWC) both compared to last quarter and y-o-y • Lower accrued income and accounts receivables following 21/22 22/23 23/24 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 healthy cash collection with high contribution from Southern
Slide 20: Proposed dividend for 2023/24
Proposed dividend for 2023/24 Dividend, SEK per share 7.5% CAGR Pay-out ratio of 70% of net income (Dividend policy of >50%) SEK 917 M 2.40 2.40 2.40 (two installments) 2.20 1.80 SEK 458.5 M SEK 458.5 M 19/20 20/21 21/22 22/23 23/24 20 Restricted Information and Basic Personal Data
Slide 21: Outlook
Outlook Restricted Information and Basic Personal Data
Slide 22: Outlook 2024/25
Outlook 2024/25 First half • Weaker due to challenging market conditions Second Half • We expect sales and profitability to pick up from new product launches as well as productivity measures Full year • Net sales expected to grow by mid-single digit with an improved EBIT margin Beyond 2024/25, EBIT
Slide 23: Financial calendar
Financial calendar Annual Report 2023/24 Jul 5, 2024 Interim report, Q1 May-Jul 2024/25 Aug 28, 2024 (new date) Annual General Meeting 2024 Sep 5, 2024 Interim report, Q2 Aug-Oct 2024/25 Nov 27, 2024 Interim report, Q3 Nov-Jan 2024/25 Feb 21, 2025 Further questions Tobias Hägglöv Peter Nyquist CFO H
Slide 24: Q&A
Q&A Restricted Information and Basic Personal Data
Slide 25: We don’t just build technology, we build hope
We don’t just build technology, we build hope Restricted Information and Basic Personal Data
Slide 26: Restricted Information and Basic Personal Data
Restricted Information and Basic Personal Data