Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — FY2015/16 Earnings Presentation
23 slides from Elekta Ab Class B's earnings presentation, June 2016
Slide 1: Year-end report 2015/16
Year-end report 2015/16 Tomas Puusepp President and CEO Håkan Bergström Chief Financial Officer
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: Operational and financial improvements in a challenging market environment
Operational and financial improvements in a challenging market environment Net Sales Highlights 2015/16 SEK M › Large strategic wins in all regions › Positive order growth for the year › Improved margin – in a challenging market › Transformation program – in line with expectations › Solutions − MR-l
Slide 4: Strong order bookings in Q4
Strong order bookings in Q4 › Strategic wins in all regions: Q4 order bookings +16%* › Full year gross and net order bookings: +1%* › Challenging market conditions particularly in emerging markets › Net sales: decreased 3%* › EBITA: increased by 11% to SEK 1,639** M › Cost savings 2015/16: SEK 200 M
Slide 5: 23% of order bookings in Q4 from large orders
23% of order bookings in Q4 from large orders. Volatility between quarters will continue 4
Slide 6: Growth in all regions
Growth in all regions Gross order bookings North and South America Europe, Middle East and Africa Asia Pacific Stable replacement market in Large wins – NHSSC and Leeds Large agreement with Genesis USA driven by service Cancer Centre in UK, Medicana Care in Australia in Turkey China was flat Latin A
Slide 7: China – market growth has leveled off
China – market growth has leveled off Elekta net sales in China › Elekta is the market and technology leader − Strong product portfolio and supply chain − Proven management team › Growth has leveled off − Growth in 2015/16 was FX driven − Opportunity in service › New regulatory requirements has temp
Slide 8: Elekta's installed base continues to grow
Elekta’s installed base continues to grow - Good momentum in winning new business New orders New sockets* Installed base 7 Note: Order intake of linear accelerators in FY 2015/16 *New radiation therapy departments or expansion by new bunker
Slide 9: Strong performance in service - LGK promising in Q4
Strong performance in service - LGK promising in Q4 › Net sales in the service business grew by 11%* in FY › Leksell Gamma Knife business improved in Q4 − Excellent feedback from customers − Leksell Gamma Knife Society meeting in Amsterdam − Approval for Icon in Japan and NRC clearance in US (May/Ju
Slide 10: Successful transformation program
Successful transformation program › Leaner and more efficient operations › Improved financial efficiency, higher margins and lower net working capital › Strengthened innovation and customer satisfaction › Realized cost savings: SEK 200 M › Net working capital ratio at 2% (8) › The produce-to-order p
Slide 11: On track to reach the targets
On track to reach the targets EBITA margin of 20% by 2017/18 Cost reductions of Net working capital One-off negative to sales below revenue impact of SEK 700*M with full effect 5% SEK500 M 2017/18 by 2016/17 in H1 2016/17 10 *Base year 2014/15, excluding currency effects
Slide 12: Financial update
Financial update Håkan Bergström CFO
Slide 13: Financial performance – fiscal year 2015/16
Financial performance – fiscal year 2015/16 › Net sales: SEK 11,221 M, -3%* › EBITA: improved 11% to SEK 1,639** M − Cost savings of SEK 200 M › Gross margin: 41% (40) − Higher share of service and positive impact from FX › Expenses are trending down - operating expenses reduced by 4%*** › R&D expen
Slide 14: Operational cash conversion at 111%
Operational cash conversion at 111% Cash conversion (%) 140% 126% 120% 111% 100% 79% 80% 60% 60% 40% 20% 0% 2012/13 2013/14 2014/15 2015/16 Operational Cash Conversion* Target › Working capital reduced by SEK ~600 M › Cash outflow in transformation SEK 250 M 13 *Cash flow from operating activities /
Slide 15: Net working capital to sales target reached
Net working capital to sales target reached DSO* Days DSO* improved to 60 (76) days (Y/Y) North and South America -46 (-16) – Favorable product mix Europe, Middle East & Africa 112 (163) – Decrease in accounts receivable Asia Pacific 128 (95) Net working capital (MSEK) % of net sales – Increase in a
Slide 16: Positive currency effect of SEK 150 M expected for 2016/17
Positive currency effect of SEK 150 M expected for 2016/17 (Based on today’s currency rates) Currency effect for fiscal year 2016/17 › Net sales -2 percentage points › EBITA: SEK +150 M › Exchange rate differences SEK 0 M (vs SEK -165 M in FY 2015/16) 15
Slide 17: Visibility going forward – gross orders and backlog maturity
Visibility going forward – gross orders and backlog maturity › Industry benchmark: reflecting underlying market development › Backlog adjustments of 7% › Orders that are not expected to materialize as planned or cancelled are removed from the order backlog 40% › Historic gross and net order numbers
Slide 18: Summary
Summary Tomas Puusepp CEO
Slide 19: Mix market dynamics - service grows in most markets
Mix market dynamics - service grows in most markets Market development (indication) North America Replacement market. Hospital consolidation. South America Challenging conditions in Brazil. Western Europe Pent-up demand and private initiatives. Eastern Europe & Middle East Markets depending on the e
Slide 20: Well positioned in attractive market
Well positioned in attractive market Transformation Unique position Strong product program on track in long-term offering and leading driving operational growing market R&D portfolio excellence
Slide 21: Dr. Richard Hausmann
Dr. Richard Hausmann President and CEO of Elekta as of June 10, 2016 20
Slide 22: Welcome to Elekta's Capital Markets Day
Welcome to Elekta’s Capital Markets Day on June 9 in Stockholm
Slide 23: Slide 23