Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q2 2021/22 Earnings Presentation
29 slides from Elekta Ab Class B's earnings presentation, Nov 25, 2021
Slide 1: Gradual market recovery
Gradual market recovery Q2 report 2021/22 Gustaf Salford, President and CEO Johan Adebäck, CFO November 25, 2021 Restricted Information and Basic Personal Data
Slide 2: Agenda
Agenda • Towards improved access to Photo the best cancer care, Q2 • Q2 financials • Outlook • Q&A 222 2 Restricted Information and Basic Personal Data
Slide 3: 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 4: Towards improved access to the best cancer care, Q2
Towards improved access to the best cancer care, Q2 4 Restricted Information and Basic Personal Data
Slide 5: Our strategy – ACCESS 2025
Our strategy – ACCESS 2025 Drive Accelerate innovation partner integration with customer across the cancer utilization in mind A world where care eco-system everyone has access to the best cancer care Be the customer Drive adoption lifetime companion across the globe People Resilience & Process Exce
Slide 6: Delivering on our strategy ACCESS 2025 in Q2
Delivering on our strategy ACCESS 2025 in Q2 Accelerate Be the customer Drive partner Drive innovation companion integration adoption • Increased innovation • ESTRO ASTRO • Spin-off from • Acquiring Turkish investment, focus on • Continued build up of collaboration with Neuro distributor software va
Slide 7: Overall good growth in both Solutions and Service, and margins improved vs. Q1
Overall good growth in both Solutions and Service, and margins improved vs. Q1 Order development Revenue development Margin development Gross margin 12 7 39% 38.6% % % 61% Solutions in Q2 21/22 in Q2 21/22 Service EBIT margin 3 7 42% 14.4% % % 58% Solutions in H1 21/22 in H1 21/22 Service Order and
Slide 8: Strong order growth in mature markets and India and China
Strong order growth in mature markets and India and China, emerging markets still impacted by the pandemic Americas EMEA APAC 16% 3% 19% H1: 1% H1: 2% H1: 7% The US and Canadian market Europe strong growth, Middle Strong growth in India, China and returning to normal East & Africa still negative imp
Slide 9: The recovery continues towards pre-pandemic growth levels
The recovery continues towards pre-pandemic growth levels Order and revenue growth, RTM Installed base 15% 10% 5% 7% 5% * 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -5% FY19/20 FY 20/21 FY 21/22 -10% Orders Revenue Q2 20/21 Q2 21/22 Order and revenue development based on constant currency. *The dip in Q1 2
Slide 10: Accelerating innovation investments focused on software
Innovation Accelerating innovation investments focused on software Personalized Acceleration of innovation projects 1 Precision • Software Innovation investment • Family of linacs • Unity platform Elevated Innovation from partnership 2 Productivity • Acquisition of key workflow IP • Designed to stre
Slide 11: Increased focus on service and roll-out of cloud and SaaS solutions
Be customer companion Increased focus on service and roll-out of cloud and SaaS solutions Service revenue Equipment as a service Customer examples Oppor- Financial services tunities Pay-per-use US Value added services Cloud solution on three continents Maintenance service contracts reaching out to +
Slide 12: Elekta Unity. See the difference.
Elekta Unity. See the difference. How Elekta Unity helps the clinicians Data & Improved Visualization Precision Productivity insights outcomes Unprecedented Truly precise and Diagnostic quality Unparalled Real-time adaptive visibility personalized MR imaging insight, visibility treatment in radiothe
Slide 13: Steady progress in clinical evidence journey
Steady progress in clinical evidence journey Cancer type: Head and Neck Cancer1 39 indications in the Cancer type: MRL Consortium Fraction: 28-33 (Dose: 63-69Gy) MOMENTUM Study3 Daily adaptive RT is safe and Outcome: clinically feasible using an online Median fraction 5 workflow Fraction: Range 1-35
Slide 14: Unity release at ASTRO: adding 3 more imaging options
Unity release at ASTRO: adding 3 more imaging options Total 14 options helping to personalize treatments Visualisation Productivity CT MR MR 3D Vane With CS Sharper imaging Faster imaging during motion Important step in Comprehensive Motion Technology accelerates Management Free breathing imaging th
Slide 15: Enhanced sustainable focus
Enhanced sustainable focus Access to health care Strategic milestone 2024/25: Sustainability-Linked +300 million people in underserved markets to get access via Elekta’s Bond Framework installed linac base Target H1 +89 Increase the installed net base of linacs in underserved markets with 825 units
Slide 16: Q2 financials
Q2 financials 16 Restricted Information and Basic Personal Data
Slide 17: Continued good revenue growth in Q2 with improved margins
Continued good revenue growth in Q2 with improved margins Rolling 12 months (RTM) development H1 Q2 SEK M % 16,000 16 Total net sales Total net sales 14 7% 7% 12,000 12 Solutions Service Solutions Service 8,000 10% 4% 8% 5% 10 4,000 EBIT margin EBIT margin 8 10.9% 14.4% 0 6 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 18: Margins still lower than previous year but improved vs Q1
Margins still lower than previous year but improved vs Q1 (SEK M) Q2 21/22 Q2 20/21 ∆ Q1 21/22 Net sales up 7% Net sales 3,697 3,534 7% 3,009 • Americas: 24% Solutions 2,254 2,136 8% 1,631 • EMEA: 6% Service 1,443 1,398 5% 1,378 • APAC: -2% COGS -2,270 -2,089 9% -1,894 Mixed effect on gross margin G
Slide 19: Increased selling activities as the business recovers
Increased selling activities as the business recovers Quarterly expenses Expenses Q2 Q2 Growth1) Q1 Growth1) Selling expenses (SEK M) 2021/22 2020/21 Y/Y 2021/22 Q/Q Increased due to more travelling and marketing activities compared to Q2 last year. Selling -317 -279 14% -316 -2% Stable vs Q1 Admini
Slide 20: Accelerated R&D investments forming future growth
Accelerated R&D investments forming future growth Rolling 12 months (RTM) R&D expenses as % of sales (RTM) SEK M 16% Gross R&D Gross R&D as % of net sales 1,800 15% Gross R&D as % of net sales Net R&D as % of net sales 14% 1,600 13% 12% 1,400 11% 10% 1,200 1,000 9% 8% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q
Slide 21: NWC negatively impacted by accrued income, inventory and other liabilities
NWC negatively impacted by accrued income, inventory and reductions in other liabilities Net working capital changes (SEK M) Net working capital as % of net sales 8,751 20/21 21/22 194 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 8,451 134 244 216 Assets -2% -3% -3% -2% -4% -4% OB 21/22 Inventory Accounts Accrued Oth
Slide 22: Cash conversion continued on good levels
Cash conversion continued on good levels H1 Cash flow (SEK M) Operational cash conversion, RTM 100% 3,000 82% 82% 77% -297 80% 71% 1,258 61% 61% 2,000 60% - 718 47% 45% 40% 35% 1,000 244 20% -604 -360 0% 0 EBITDA Other1) Change in Cash flow Continuous Cash flow Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 NWC from in
Slide 23: Outlook – Q3 and mid-term
Outlook – Q3 and mid-term 23 Restricted Information and Basic Personal Data
Slide 24: Outlook in Q3
Outlook in Q3 • Market recovery leading to continued strong demand • Supply chain challenges continue to impact revenue and margins • Increased risk of component shortages • Long-term market trends to support growth and investment in high-end RT equipment and margin expansion 24 Restricted Informati
Slide 25: Mid-term outlook until 24/25
Mid-term outlook until 24/25 Growth Margin Capital allocation >7% EBIT % >50% net sales expansion of annual net profit CAGR over period in dividend Elekta’s outlook is based on an average 6-8% market growth during the mid-term period 25 Restricted Information and Basic Personal Data
Slide 26: Summary Q2
Summary Q2 • Strong order growth throughout the business in a recovering market mainly driven by mature markets • Installations continued on more normalized level driving growth, especially in North America, Europe and China • Progress in innovation and collaborations, focus on software and Comprehe
Slide 27: We build hope
We don’t just build technology We build hope 27 Restricted Information and Basic Personal Data
Slide 28: Q&A
Q&A 28 Restricted Information and Basic Personal Data
Slide 29: Restricted Information and Basic Personal Data
Restricted Information and Basic Personal Data