Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q1 2019/20 Earnings Presentation
31 slides from Elekta Ab Class B's earnings presentation, Aug 22, 2019
Slide 1: Slide 1
Slide 2: Very strong order intake kick-starts the year
Very strong order intake kick-starts the year Q1 report 2019/20 August 22, 2019
Slide 3: Agenda
Agenda 1. Q1 performance 2. Financials 3. Outlook 4. Q&A 33
Slide 4: 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 5: 1. Q1 performance
1. Q1 performance Dr. Richard Hausmann President and CEO 5
Slide 6: We are Precision. Radiation. Medicine.
We are Precision. Radiation. Medicine. Everyone with cancer should have access to and benefit from precise, personalized radiotherapy 66
Slide 7: Creating value by innovation and thought leadership
Creating value by innovation and thought leadership Net sales EBITA margin rolling 12 months rolling 12 months MSEK 25% 14 000 20% 12 000 Total 15% 10 000 Solutions 10% 8 000 6 000 5% Services 4 000 0% 16/17 17/18 18/19 19/20 16/17 17/18 18/19 19/20 7
Slide 8: Q1 – historically high order intake
Q1 – historically high order intake Key Q1 financials • Organic order intake +32% • Organic net sales +9% • Gross margin 42.6% (39.1) • EBITA margin 13.9% (13.7) 88
Slide 9: Q1: Very strong order growth in EMEA and Asia Pacific
Q1: Very strong order growth in EMEA and Asia Pacific North & Europe, Middle Asia South America East & Africa (EMEA) Pacific +0% +64% +31% • Stable development overall • Historically high growth • Strong order intake • Good growth in Solutions • Especially strong growth in Germany, • Good developmen
Slide 10: Highlights so far FY 19/20
Highlights so far FY 19/20 Precision Radiation Medicine 10 10
Slide 11: GenesisCare collaboration
GenesisCare collaboration Dan Collins, CEO at GenesisCare states “ This innovative technology represents a new era in radiotherapy…” Ordering 9 Elekta Unity (July 2019) Extended strategic cooperation • Order value USD 58 M • Collection agreement of real-world plus service agreement treatment data •
Slide 12: Elekta Unity – 60 systems ordered as of today – approvals coming in
Elekta Unity – 60 systems ordered as of today – approvals coming in Reiterating 75 orders by mid-2020 Ongoing approval process in Russia Canadian clearance for clinical use in Jul 2019 Ongoing registration process in Korea European CE mark in Jun 2018 Japanese approval in May 2019 FDA clearance in D
Slide 13: 1000th fraction treated at University Hospital Tubingen
1000th fraction treated at University Hospital Tubingen in less than 1 year of operation 13
Slide 14: Elekta Unity clinical cases: >350 patients
Elekta Unity clinical cases: >350 patients MCW UMC Utrecht UMC Utrecht MCW UMC Utrecht MCW Univ Tubingen Univ Tubingen MCW Univ Tubingen Odense Odense Odense Univ. Tubingen AvL-NKI Odense MCW MCW MCW 14
Slide 15: Potential to treat more challenging cases
Potential to treat more challenging cases Planning CT Navigated T2 DWI* IV CT Navigated T2 Cor reformat DWI* Sag reformat Beam-on monitoring (Sagittal plane) Courtesy of Froedtert Hospital / Medical College of Wisconsin 15 *DWI is CE marked for brain applications only. Not commercially available in
Slide 16: Our Elekta Unity pioneers treating patients routinely
Our Elekta Unity pioneers treating patients routinely 11 installed Elekta Unitys in use with great feedback on performance 1) 1) 1) 1) 1) 1) 1) Shandong Cancer Hong Kong Sana- Hospital & Institute torium & Hospital 1) Original consortium members 16
Slide 17: Clinical experience with Elekta Unity
Clinical experience with Elekta Unity From Aug 2018 until today Treated cancer types >350 patients Prostate completed treatment Oligomets >50% 16 min SBRT adoption Minimum session time Rectum (at AvL-NKI) Liver Bone Breast >18 Pancreas Head&Neck different cancer types treated Brain/GBM; Esophagus; C
Slide 18: The US radiation oncology alternative payment model
The US radiation oncology alternative payment model Supports our strategy Precision Radiation Brachy GammaKnife Medicine Focus on outcome and cost of care: • Increasing hypofractionation and SBRT • Enhancing efficient work flows and staffing Linac SRS/SBRT MR-guided RT • Optimizing equipment mix wit
Slide 19: 2. Financials
2. Financials Gustaf Salford CFO 19
Slide 20: Revenue growth and Gross margin improvement in the quarter
Revenue growth and Gross margin improvement in the quarter Q1 Q1 (SEK M) 2019/20 2018/19 • Net sales up 9% for the quarter Net sales 3,228 2,819 • North and South America: 0% Solutions 1,858 1,582 Service 1,371 1,237 • Europe Middle East and Africa: 13% COGS -1,853 -1,716 Gross margin (%) 42.6% 39.1
Slide 21: EBITA% improvement vs. last year driven by higher volume and positive project mix
EBITA% improvement vs. last year driven by higher volume and positive project mix Q1 YTD - EBITA bridge (SEK M) 13.7% 13.9% 112 108 5 • Small increase in EBITA% 85 160 64 • Strong contribution from 76 volume and project mix 448 • FX effect on EBITA: -50 MSEK 386 • In Q1 FY18/19 the MEG divestment co
Slide 22: Continued good cost control in Q1
Continued good cost control in Q1 Expenses Q1 Q1 Growth* Q4 Growth* • Continued focus on cost control (SEK M) 2019/20 2018/19 Y/Y 2018/19 Q/Q Selling -365 -324 8% -342 9% • Selling expense increase related to investments in the sales organization to capture market growth and Unity opportunities Admi
Slide 23: Cash conversion weak in the quarter due to increased working capital
Cash conversion weak in the quarter due to increased working capital Cash conversion bridge Operational cash conversion and EBITDA Q1 Q1 Rolling 12 SEK M (SEK M) 150% 19/20 18/19 months EBITDA 542 427 2,754 50% 4 000 Working capital -1,023 -699 -960 100% Financial net -46 -25 -136 Paid tax -41 -21 -
Slide 24: Net working capital increase from higher inventory, lower collections
Net working capital increase from higher inventory, lower collections and higher outgoing payments Net working capital change in the quarter Net working capital as % of net sales 9,092 Q1 238 Q1/ 18/19 Q2 18/19 Q3 18/19 Q4 18/19 19/20 121 39 0% 8,548 Assets 146 -5% -7% Q4 18/19 Inventory Accounts IN
Slide 25: Continued strong financial position
Continued strong financial position Net debt* / EBITDA EBITDA SEK M 1,6 5000 Q1 (SEK M) 19/20 1,4 4000 Long term interest bearing liabilities 3,504 1,2 1,0 3000 Short term interest bearing liabilities 1,015 0,8 Cash and cash equivalents and short-term investments -3,349 0,6 2000 0.4 Net debt* 1,170
Slide 26: 3. Outlook
3. Outlook Dr. Richard Hausmann President and CEO 26
Slide 27: New members in executive management team
New members in executive mangement team Sukhveer Singh Habib Nehme Lionel Hadjadjeba Verena Schiller 27
Slide 28: 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 • Continue the success of Elekta Unity, Ramp-up Net sales 8-10% 8-10% development of Elekta Digital etc. • Growing installed base >20% • Continued cost control EBITA margin ~19% with expansion of up to
Slide 29: In summary
In summary • New technology driving the market - Increasing interest in Unity • Very good order growth • Gross margin and EBITA pick up • Positive outlook 29
Slide 30: Elekta Investor Meeting September 2019 Hilton Chicago
Elekta Investor Meeting 16 September 2019 Hilton Chicago 09:00 - 11:00 720 South Michigan Avenue Central Time Chicago, Illinois 78205 USA @Elekta 30
Slide 31: Q&A
Q&A