Slide 1: Acquisition of Nucletron
Acquisition of Nucletron Building a stronger position in the cancer care market June 2011
Slide 2: Agenda
Agenda 1. Transaction Overview 2. Overview of Nucletron 3. Strategic Rationale 4. Financial Considerations 5. Summary 5. Q&A 2
Slide 3: Transaction overview
Transaction overview Human Care Makes the Future Possible C*) ELEKTA
Slide 4: Transaction overview
Transaction overview • Elekta has signed a definitive agreement to acquire Nucletron, the worldwide leader in brachytherapy treatment planning and delivery • Key transaction details: – Value: €365m in cash – Financing: Existing cash + available credit facilities – Closing conditions: Subject to cust
Slide 5: Overview of Nucletron
Overview of Nucletron Human Care Makes the Future Possible C*) ELEKTA
Slide 6: Company snapshot
Company snapshot Company overview Financial profile • Headquartered in Veenendaal, Netherlands; • Solid financial performance Founded in 1975; ~500 employees – 2010 sales growth of 14% • Highly successful radiotherapy company – 2010 EBITDA growth of 29% specialised in Brachytherapy treatment solutio
Slide 7: State of the art product portfolio
State of the art product portfolio Brachytherapy • Brachytherapy involves precisely placing a radiation Afterloaders Applicators Software source internally, either into or immediately next to the cancerous tumour • Able to reach sites not typically accessible via external beam • Prevalent in gynaeco
Slide 8: Brachytherapy's important role in cancer care
Brachytherapy’s important role in cancer care Radiation therapy (RT) is an integral part of cancer care Brachytherapy accounts for ~5-10% (1) of the RT market Applications of Brachytherapy(2) Medical Oncology Radiation Therapy 15% 12% 47% 3-5x cost of 26% radiation therapy Surgery 2x cost of I Gynae
Slide 9: Strategic rationale
Human Care Makes the Future Possible C*) ELEKTA
Slide 10: Consistent with Elekta's acquisition criteria
Consistent with Elekta’s acquisition criteria Strategic fit of technology Strong fit with customer base • Highly complementary product • Core focus on oncology and and technology portfolio cancer care markets • Enhances ability to develop new • Radiation therapy market oncology solutions customer fo
Slide 11: Customers and patients will benefit from improved service offerings and reduced treatment times
Customers and patients will benefit from improved service offerings and reduced treatment times • c.250,000 patients are treated by Nucletron each year, while Elekta treats c.650,000 annually • Today’s complex cancer types and treatments require a high degree of multimodality and flexibility • The c
Slide 12: Elekta will have better access to oncology care in fast-growing emerging markets
Elekta will have better access to oncology care in fast-growing emerging markets #1 #1 #2 (1) Market position (2) Nucletron: I Direct Sales I Distributor Brachytherapy is an important treatment option in emerging markets due to: • Lower maintenance and installation costs • Shorter treatment times •
Slide 13: Financial considerations
Financial considerations Human Care Makes the Future Possible C*) ELEKTA
Slide 14: Financial considerations
Financial considerations • Transaction valued at €365m on a cash and debt free basis • Acquisition will add c.15% percent to Elekta’s sales • Expected to yield good growth with attractive revenue opportunities by taking mutual advantage of Nucletron’s presence in Asia and Elekta’s global footprint a
Slide 15: Summary
Human Care Makes the Future Possible C*) ELEKTA
Slide 16: Summary
Summary • Strong technologic fit and opportunities • Broadens product and service offerings • Expands presence in emerging markets • Accretive to cash earnings within 12 months 16
Slide 17: Elekta Nucletron
Human Care Makes the Future Possible “ ELEKTA 4 Nucletron Improving patient care