Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q4 2018/19 Earnings Presentation
29 slides from Elekta Ab Class B's earnings presentation, May 29, 2019
Slide 1: Strong finish to a successful year of proven Unity excellence and software innovations
Strong finish to a successful year of proven Unity excellence and software innovations Elekta Q4 and full-year report 2018/19 May 29, 2019 Focus where it matters.
Slide 2: Agenda
Agenda. 1. Q4 and year-end results 2. Financials Richard Hausmann Gustaf Salford 3. Outlook President and CEO CFO 4. Q & A Focus where it matters.
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 even
Slide 4: 1. Q4 and full-year results
Richard Hausmann President and CEO 1. Q4 and full-year results
Slide 5: We are Precision Radiation Medicine
We are Precision Radiation Medicine Everyone with cancer should have access to and benefit from precise, personalized radiotherapy
Slide 6: Q4 – a strong finish, delivering on all key figures
Q4 – a strong finish, delivering on all key figures Precision Radiation Medicine Key Q4 financials • Order intake +8% • Net sales growth +12% • Gross margin 45.2% Kit margin 24.1% • EBITA • Improved cashflow
Slide 7: Elekta Unity – 6 systems ordered in Q4, 45 in total
Elekta Unity – 6 systems ordered in Q4, 45 in total Reiterating 75 orders by mid-2020 10 23 12 ?
Slide 8: 9 months of clinical experience with Elekta Unity
9 months of clinical experience with Elekta Unity From Aug 2018 until today Treated cancer types >190 >1,700 100% patients online completed 90% adaptations Prostate; 27% treatment 80% 70% 52% 16 min 60% Oligomets; 25% SBRT minimum adoption session time 50% (at AvL-NKI) 40% Rectum; 19% 30% >12 Liver;
Slide 9: Our Elekta Unity pioneers treating patients routinely
Our Elekta Unity pioneers treating patients routinely 10 of 21 installed Elekta Unitys in use with great feedback on performance 1) 1) 1) 1) 1) 1) Shandong Cancer Hong Kong Sanatorium Hospital & Institute & Hospital 1) Original consortium members
Slide 10: Elekta at ESTRO – high attendance and great interest for new launches
Elekta at ESTRO – high attendance and great interests for new launches Our most recent software: MOSAIQ® Plaza Treatment solutions – Unity “We’re now taking advantage of the exceptional image quality of Elekta Unity to enhance and expand online adaptive protocols.” Prof. Dr. Daniel Zips, Medical Dir
Slide 11: Q4: Strong order growth in EMEA and North America
Q4: Strong order growth in EMEA and North America North & Europe, Middle Asia Pacific South America East & Africa +9% Q4 +18% Q4 -8% Q4 • Strong growth in North America, • Fifth consecutive growth quarter • Weak quarterly order intake especially in software • Strongest growth in Middle East • Good o
Slide 12: FY 18/19: EMEA strong order intake throughout the year
FY 18/19: EMEA strong order intake throughout the year North & Europe, Middle Asia Pacific South America East & Africa -1% FY 18/19 +18% FY 18/19 +6% FY 18/19 • Strong development in North • Good growth throughout the • Good order intake America in H2 more than region compensated for Q2 drop • Leadi
Slide 13: FY 18/19 – successful year of proven Unity excellence and software innovation
FY 18/19 – successful year of proven Unity excellence and software innovation • Growth of installed base to ~ 4,300 units • Good base for service going forward. Services in the year grew by 7% accounting for ~40% of revenue • Strong year for Leksell Gamma Knife® • High interest for newly launched MO
Slide 14: FY 18/19: Strong growth – both order and sales
FY 18/19: Strong growth – both order and sales Guidance fulfillment Order intake Net sales growth +8% +10% Gross margin EBITA margin 41.9% 18.3% Based on unchanged exchange rates
Slide 15: 2. Financials
Gustaf Salford CFO 2. Financials
Slide 16: Strong net sales growth and gross margin in the quarter
Strong net sales growth and gross margin in the quarter Q4 Q3 Q2 Q1 Q4 (SEK M) 2018/19 2018/19 2018/19 2018/19 2017/18 Net sales 4,086 3,320 3,330 2,819 3,409 Solutions 2,708 2,049 2,054 1,582 2,235 • Net sales up 12% in Q4 Service 1,378 1,270 1,276 1,237 1,173 - North and South America: FY 9% COGS
Slide 17: Full-year sales growth of 10% and EBITA margin of 18%
Full-year sales growth of 10% and EBITA margin of 18% FY FY (SEK M) 2018/19 2017/18 Net sales 13,555 11,573 • Net sales up 10% for the full year – growth in all regions Solutions 8,394 7,054 Service 5,161 4,519 - North and South America: FY 8% COGS -7,875 -6,517 - Europe Middle East and Africa: 9% G
Slide 18: EBITA% vs. last year impacted by price pressure, Unity commercialization and less capitalization
EBITA% vs. last year impacted by price pressure, Unity commercialization and less capitalization Q4 YTD - EBITA bridge (SEK M) 242 20.5% 18.3% 866 585 138 70 122 257 FX effect on EBITA +84 2369 2477 MSEK EBITA YTD Volume Price Unity Admin/ MEG FX rate Amortization EBITA YTD 17/18 pressure/ Selling/
Slide 19: Continued focus on cost control – significant impact of less R&D capitalization and Unity amortization
Continued focus on cost control– however significant impact of less R&D capitalization and Unity amortization Expenses FY FY Growth* Q4 Q4 Growth* (SEK M) 2018/19 2017/18 Y/Y 2018/19 2017/18 Y/Y • Continued focus on cost control Selling -1 296 -1 208 2% -342 -326 -1% • Admin expense increase vs. Q4
Slide 20: Decrease in working capital from lower Accounts Receivables and higher Accounts Payable
Decrease in working capital from lower Accounts Receivables and higher Accounts Payable Net working capital change in the quarter Net working capital as % of net sales 8,815 126 Assets 319 20% 120 194 8,548 14% 15% 8% 10% Q3 18/19 Inventory Accounts INI Other Q4 18/19 receivable 2% 5% 0% 13/14 14/15
Slide 21: Strong Cash Conversion in the quarter driven by improved Working Capital
Strong Cash Conversion in the quarter driven by improved Working Capital Cash Conversion bridge Operational cash conversion and EBITDA FY FY Q4 Q4 (SEK M) 18/19 17/18 18/19 17/18 SEK M 150% EBITDA 2 639 2 520 1 028 888 61% Working capital -636 47 610 372 4 000 100% Financial net -116 -164 -23 -59 Pa
Slide 22: We have a strong balance sheet and allocated capital in four key areas
We have a strong balance sheet and during the year we have allocated capital in four key areas Net Debt / EBITDA Capital Allocation areas EBITDA SEK M 1,6 5000 • Dividend policy of >30% 1,4 Dividend • 1.4 SEK/Share 4000 1,2 1,0 3000 Selective • Acquisition of Acumyn July 2018 0,8 acquisitions • Inve
Slide 23: Impact from reporting IFRS 16 from FY 2019/20
Impact from reporting IFRS 16 from FY 2019/20 Modified retrospective approach Balance Sheet Applied as of May 1, 2019 • Additional SEK 1.2 bn in total assets (right of use assets vs lease liabilities) • Financial leases (primarily site lease in Crawley) become liabilities/assets 1,2 Effect on P&L an
Slide 24: 3. Outlook
Richard Hausmann President and CEO 3. Outlook
Slide 25: Proposed dividend for FY 2018/19
Proposed dividend for FY 2018/19 Dividend, SEK per share Pay-out ratio 2,00 1.80 in two payments 1,60 1,20 0,80 57% of net income 0,40 0,00 15/16 16/17 17/18 18/19 Proposed by the Board Focus where it matters.
Slide 26: Guidance and priorities going forward
Guidance and priorities going forward Guidance Scenario FY 19/20 FY 20/21-22/23 Focus in FY 19/20 • Ramp-up of the commercialization of Net sales 8-10% 8-10% Elekta Unity, continuous development of Elekta Digital etc. • Growing installed base >20% • Continued cost control EBITA margin ~19% with expa
Slide 27: In summary
In summary • Good net sales and order growth • Gross margin and EBITA pick up at year-end • Strong financial position • High interest for Unity and great customer feedback • Good future prospects
Slide 28: Q&A. We now welcome any of your questions
Q&A. We now welcome any of your questions Richard Hausmann Gustaf Salford President and CEO CFO Focus where it matters.
Slide 29: Thank you
Thank you Next report, Q1: Aug 22, 2019 Cecilia Ketels, Head of IR E: cecilia.ketels@elekta.com T: +46 76 611 76 25