Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q1 2017/18 Earnings Presentation
21 slides from Elekta Ab Class B's earnings presentation, Aug 23, 2017
Slide 1: Q1 report
Q1 report August 23, 2017 Richard Hausmann President and CEO Gustaf Salford CFO
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: Richard Hausmann, President and CEO
Richard Hausmann President and CEO 3 | Focus where it matters
Slide 4: Highlights Q1 2017/18
Highlights Q1 2017/18 Net sales grew +12% in local currency (+15% in SEK) • Strong growth in China, Western Europe and emerging markets – delivery volumes are approaching satisfactory levels Gross margin improved by 1.8 percentage points • Higher volumes and leverage on process improvements EBITA gr
Slide 5: Unchanged order intake (+3% in SEK)
Unchanged order intake (+3% in SEK) Asia Pacific Europe, Middle East, and Africa North and South America +10% 0% -2% 1 121 830 826 811 791 1 021 +7% in -4% in -6% in constant constant constant currency currency currency Q1 16/17 Q1 17/18 Q1 16/17 Q1 17/18 Q1 16/17 Q1 17/18 • Strong performance in So
Slide 6: Elekta Unity – will revolutionize radiation therapy
Elekta Unity – will revolutionize radiation therapy • Two systems added to the backlog • Shipment of first serial produced system to Tübingen initiated • Expanded consortium 6 | Focus where it matters.
Slide 7: First patients treated and clinical study completed at UMC
First patients treated and clinical study completed at UMC ”Analysis of the first clinically derived data shows that visibility of the treatment target and simultaneous radiation beam accuracy is excellent and beyond expectations
Slide 8: Commercialization on track
Commercialization on track ASTRO Target: 510k ESTRO September submission presentation 2017 2017 Target: RSNA First patient CE-mark November treated 2017 2017 8 | Focus where it matters.
Slide 9: Long-term addressable market ~25% of current installed linacs
Long-term addressable market ~25% of current installed linacs TARGET Phase 1 Academic driven phase 75 orders • High-profile clinics. until 2019 • ~300-400 units addressable market. 16 orders to date Momentum project - Further clinical research and data - Financial reimbursement/support Phase 2 Broad
Slide 10: Our way forward 2018/19
Our way forward 2018/19 2016/17 2017/18 2018/19 • Year of change and building • Transformation delivers • Elekta Unity – growth driver the foundation for profitable full effect growth • Significant efficiency • Organization and manage- improvements • Produce to order and ship to ment in place instal
Slide 11: Targets for 2017/18
Targets for 2017/18 Net working Reach capital Growth >20% <5% EBITA-margin to net sales 11 | Focus where it matters.
Slide 12: Financial update
Financial update Gustaf Salford, CFO
Slide 13: Income statement – Q1 2016/17
Income statement – Q1 2016/17 Q1 Q1 (SEK M) 2017/18 2016/17 Net sales 2,169 1,882 • Net sales +15%; China, Western COGS -1,250 -1,118 Europe and emerging markets Gross margin (%) 42.4% 40.6% • Gross margin +1.8 percentage points; volume Selling expenses -305 -276 • Increase in R&D; up SEK 65 M from
Slide 14: EBITA bridge compared with last year
EBITA* bridge compared with last year EBITA bridge (SEK M) +38 -93 +117 -33 -45 +38 166 187 EBITA Q1 Volume Efficiency & Unity Admin Exchange rate Amortization EBITA Q1 16/17 COGS Selling/R&D Expenses differences and bad debt 17/18 14 | Focus where it matters. *Before items affecting comparability a
Slide 15: Strengthened cash flow and cash conversion
Strengthened cash flow and cash conversion Cash conversion Cash Flow Q1 16/17 Q1 17/18 R12 180% Operating cash flow -37 64 868 160% 150% 145% Working Capital -103 +12 +1 166 140% 126% 120% 111% Cash Flow from operating -139 76 2 034 100% activities 79% Continuous investments -169 -171 -776 80% 60% C
Slide 16: Net working capital at -6% of sales
Net working capital at -6% of sales Key working capital assets Net working capital Accounts as % of sales receivables 12% Accrued income 8% Inventories 4% Q3 Q4 Q1 Q2 Q3 Q4 Q1 15/16 15/16 16/17 16/17 16/17 16/17 17/18 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 -4% Key working capital liabilities -8% -6% Customer advan
Slide 17: SEK ~100 M in currency effect expected for FY 2017/18
SEK ~100 M in currency effect expected for FY 2017/18 Currency effect in Q1 (SEK M, Y/Y) Estimated effect 2017/18 Y/Y (SEK M) • Effect on net sales: 60 Estimated effect on EBITA (Y/Y) ~100 • Effect on expenses: -10 • Exchange rate differences: -12 Main currency rates vs. last year • Exc. differences
Slide 18: Implementation of IFRS 15 from fiscal year 2018/19
Implementation of IFRS 15 from fiscal year 2018/19 Revenue recognition under IFRS15 ”linac example” Income statement • Solutions (60% of sales) Start of Acceptance Clinical Order Production Shipment Installation Test Go live • ~85% at start of installation IFRS15 • ~15% on acceptance test 85% at sta
Slide 19: SEK 7 bn estimated to be delivered from backlog this fiscal year
SEK 7 bn estimated to be delivered from backlog this fiscal year Order backlog (SEK bn) 22,5 21,7 21,9 21,7 • Recent backlog decline related to currency 20,1 movements (SEK -1.3 bn) 18,2 • SEK ~7 bn expected to be delivered from backlog Q2-Q4 Q4 2016/17 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q4 2016/17 Q1
Slide 20: Margin drivers for 2017/18
Margin drivers for 2017/18 Margin drivers 2017/18 (indicative) EBITA bridge from last year (SEK M) Investments Currency COGS savings and efficiency initiatives Volume growth Service growth Reach >20% EBITA EBITA Produce Cost Currencies EBITA margin Working 15/16 to order savings capital 16/17 effect
Slide 21: Focus where it matters.
Focus where it matters. be) CyElekta