Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q1 2015/16 Earnings Presentation
23 slides from Elekta Ab Class B's earnings presentation, 2015
Slide 1: Elekta – Q1 report 2015/16
Elekta – Q1 report 2015/16 Tomas Puusepp President and CEO Håkan Bergström Chief Financial Officer 1
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: Good performance in Q1 - highlights
Good performance in Q1 - highlights • Growth: net sales increased +4*% • Improved gross margin: 6 ppts to 40 % • EBITA improved by SEK 79** M • The launch of a comprehensive action program − New organization implemented • Leksell Gamma Knife® Icon™ − 510(k) clearance in the US *Based on unchanged ex
Slide 4: Priorities for short-, mid- and long-term
Priorities for short-, mid- and long-term Priorities: • Growth • Profitability • Cash flow 4
Slide 5: Favorable market for radiation therapy
Favorable market for radiation therapy • North America − Consolidation drives large and complex orders with long sales processes − Replacement market with growth potential in software and services • Western Europe − Stable and growing in line with GDP • Emerging markets − Increased risk in some mark
Slide 6: Net sales grew by 4%* in Q1
Net sales grew by 4%* in Q1 Order bookings • Good growth in the US. Volatility expected to continue 2 536 2 341 Growth: 8% • Strong performance in South America CC growth: -5% • Challenging y/y comparison in Europe, Middle East and Africa • Continued growth in China. Strong performance in India and
Slide 7: Gross margin improved by 6 percentage points
Gross margin improved by 6 percentage points Gross margin 39,5% Improvement: 33,9% 6 ppts • Growth in software and services • Improved product mix with higher share of Versa HDTM Q1 2014/15 Q1 2015/16 EBITA • Increased volumes Improvement: SEK 79 M • Currency effects of SEK -20 M 41* • Limited cost
Slide 8: Double-digit growth in service revenues
Double-digit growth in service revenues Service revenues* • Sales focused on MSEK existing customers CAGR: 12% 4 000 • Increased value in the customer offering 3 000 • Cost-efficient service 2 000 concept through Elekta care 1 000 • Continuous upgrades in 0 FY11/12 FY12/13 FY13/14 FY14/15 Rolling 12
Slide 9: Atlantic – game changer in radiation therapy
Atlantic – game changer in radiation therapy Atlantic status • Treatment and MRI imaging in real time • Assembly and test of 12 systems over the next 10 months • Opportunity for new indications • Delivery to all consortium members • Improved treatments within 16 months • Second system in installatio
Slide 10: Atlantic – launch and commercial orders from 2017
1. Atlantic – launch and commercial orders from 2017 Planning Ambition Consortium orders – research systems 8 Regulatory approvals - CE Mark, 510(k) During 2017 Launch and taking commercial orders 2017 Total orders during ramp up 75 (until 2019) >700 MUSD Expected market price USD 8-10 M order oppor
Slide 11: Leksell Gamma Knife Icon
Leksell Gamma Knife® Icon™ Ultra-precise Microradiosurgery™ with Online Adaptive DoseControl™ • Significant interest from new customers • Upgrade potential: 200 installed Leksell Gamma Knife® Perfexion™ Regulatory status: • 510k clearance from FDA in August • CE-mark in June >200 MUSD • Expected app
Slide 12: Global action program to drive efficiency
Global action program to drive efficiency • More efficient organization for rapid change in place • Concrete two-year plan to achieve improved growth and profitability • Several activities and actions launched • In-depth study for value creation completed with the support from external consultants T
Slide 13: Initiated actions for reduced costs and higher efficiency
Initiated actions for reduced costs and higher efficiency 1. Reduce costs and increase efficiency in administration 2. Increase efficiency and productivity in: • Marketing • Product development • Service operations 3. COGS - reduction of product costs 4. Reduce working capital 5. Consolidate sites a
Slide 14: Our financial ambitions
Our financial ambitions Short-term Mid-term Long-term (2015/16) (2016/17 – 2017/18) • Return to growth in H2 • 3-5%* net sales growth • >10%* net sales growth 2015/16* per year per year • Improve EBITA margin • Improve EBITA margin with • Growth in EBITA to exceed ─ Cost reductions more than 6** per
Slide 15: Elekta – Q1 report 2015/16
Elekta – Q1 report 2015/16 Håkan Bergström Chief Financial Officer 15
Slide 16: Financial performance - Q1 FY 2015/16
Financial performance - Q1 FY 2015/16 • EBITA: SEK 41* M (-38) − EBITA margin improved 4 percentage points to 2% − Costs related to comprehensive action program SEK 29 M − Bad debt loss SEK 27 M. Customers in Latin America. Bad debt provision at SEK 162 M • R&D expenditures of SEK 362 M (349); 16% (
Slide 17: FY 15/16 - FX Impact – weakening of SEK
FY 15/16 - FX Impact – weakening of SEK Currency Exposure Q1 Main currency rates FY15/16 vs. last year Currency effect YoY SEK M • Effect on revenue: +16% +290 12% Q1 LY Q1 FY Change 18% • Effect on COGS: +12% -140 5% 6% • Effect on Gross exp: +14% -110 13% EUR/SEK 9,12 9,32 +2% • Exchange differenc
Slide 18: Order backlog - visibility of future revenue
Order backlog - visibility of future revenue Order backlog maturity by year 17,9 (bnSEK) Service Hardware/Software/Aftersales 50% Q1 Order backlog: • SEK ~6,300 M from backlog 35% expected as revenue in FY 25% 2015/16 61% 25% 50% 15% • Maturity unchanged 57% 38% 34% 39% 43% 62% • Significant currenc
Slide 19: R&D investments for future growth
R&D investments for future growth R&D expenses SEK M % of net sales 3 000 13,1% 12,8% 14% 11,2% 12% 2 500 10% 2 000 8,6% 8,6% 8,8% 8,7% 8,1% 6,9% 8% 6,7% 1 500 6% 1 000 4% 500 • Gross R&D investments 2% will normalize 0 0% 11/12 12/13 13/14 14/15 Rolling- 12 • Net R&D trailing behind months Gross R&
Slide 20: Cash conversion – ambition > 70%
Cash conversion – ambition > 70% 140% 126% 127% 120% 100% 88% • High period of 80% 76% 81% investments, will decrease 60% 60% • Working Capital <10% 40% 32% of sales 20% 0% 12/13 13/14 14/15 Rolling 12-months Free cash flow / adjusted net profit Cash flow from operating activities / EBITDA Target 20
Slide 21: Net working capital at 11% of net sales
Net working capital at 11% of net sales Net working capital / net sales DSO* development SEK M SEK M 6 000 16% 6 000 120 14% 5 000 5 000 100 Ambition 12% 4 000 <10% 11% 4 000 80 10% 3 000 8% 3 000 65 60 6% 2 000 2 000 40 4% 1 000 1 000 20 2% 0 0% 0 0 11/12 12/13 13/14 14/15 Rolling 12- 11/12 12/13 1
Slide 22: Welcome to Elekta's Capital Markets Presentation at ASTRO
Welcome to Elekta’s Capital Markets Presentation at ASTRO October 19 – San Antonio, Texas, USA
Slide 23: (-*) ELEKTA
(-*) ELEKTA