Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q3 2016/17 Earnings Presentation
13 slides from Elekta Ab Class B's earnings presentation, Mar 1, 2017
Slide 1: Q3 Report
Q3 Report March 1, 2017 - Stockholm Richard Hausmann 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: Q3: strong order intake and cash flow
Q3: strong order intake and cash flow › Order growth in Q3 +34% and +11% YTD › Growth in all product areas › Net Sales in Q3: +5% in SEK and +1% in local currency › EBITA margin in Q3: at 12% (13) › Rolling 12-months EBITA margin improved to 16 percent or +2 percentage points since last year › Trans
Slide 4: Strengthened market positions in Q3
Strengthened market positions in Q3 Europe, Middle East, Asia Pacific North and South and Africa America • Strong growth with important • Continued growth in the region • US - further actions for customer wins: New Karolinska, • Strong performance in China improvement are being Greece and Spain etc.
Slide 5: Our ambition is to improve EBITA margin to >20%
Our ambition is to improve EBITA margin to >20% Margin development* (illustrative) Transformation program targets EBITA margin of >20% by 2017/18 Cost reductions of Net working capital Produce-to-order SEK 700**M to sales below process. One-off with full effect 5% revenue effect was SEK 650 in 2017/
Slide 6: 12 MR-linac customers to date
7 consortium sites 5 commercial systems 12 MR-linac customers to date Ambition: Launch in 75 orders H2 calendar until 2019 year 2017 Note: all in line with local regulatory requirements
Slide 7: Financial Update
Financial Update Håkan Bergström Chief Financial Officer
Slide 8: Income statement - first 9 months
Income statement - first 9 months Improved margins YTD YTD (SEK M) 2016/17 2015/16 I. Net sales decreased by SEK 625 M - “Produce-to-order” process implemented with Net sales 6,989 7,614 a negative effect of SEK 650 M COGS -4,138 -4,541 II. Gross margin at 40.8 (40.4) % Gross margin (%) 40.8% 40.4%
Slide 9: Positive currency effect expected for FY 2016/17
Positive currency effect expected for FY 2016/17 Weakening of GBP have a positive effect on bottom line EFFECT YTD Y/Y EFFECT 2016/17 Y/Y (MSEK) (MSEK) • Effect on net sales: ~2% • Effect on net sales: ~3% • Effect on EBITA: 220 • Estimated effect on EBITA (Y/Y) ~350 • Exchange rate differences: -53
Slide 10: Cash flow improved by approx. SEK 650 M
Cash flow improved by approx. SEK 650 M CASH FLOW YTD YTD (SEK M) 2016/17 2015/16 I. Improved working capital - Produce to order process Operating Cash Flow 267 460 Change in Working Capital 329 -136 II. Lower continuous investments Cash flow from operating - Lower R&D capitalization activities 596
Slide 11: Net working capital at 1% of net sales
Net working capital at 1% of net sales* NET WORKING CAPITAL as % of SALES 15% 10% 5% 1,0% 0% 1601AC 1604AC 1607AC 1610AC 1701AC • DSO at 30 days (56) • Lower accrued income • Target to reduce inventories 11 | Focus where it matters *Rolling 12-month
Slide 12: Improved backlog position
Improved backlog position Q3 2015/16 Q3 2016/17 (SEK bn) (SEK bn) 12 | Focus where it matters
Slide 13: Elekta
CElekta