Slide 1: Q2 report
Q2 report November 30, 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: Strong financial performance
Strong financial performance Net sales grew by +19% • Strong growth in China, Western Europe and in emerging markets – overcompensating the produce-to- order effect from last year EBITA (adj.) increased +30% to SEK 509 M • Sales growth and direct cost savings • Lower operating costs and stabilizatio
Slide 5: Good order intake in USA and China and net sales grew in all regions
Good order intake in USA and China and net sales grew in all regions 5 | Focus where it matters.
Slide 6: Good progress in our product portfolio – highlights
Good progress in our product portfolio – highlights Net sales split (rolling 12 months) Services Solutions • Stable recurring • Solid growth in linac revenue stream business 41% 59% • New head of global • Treatment planning services appointed software Monaco® picking up nicely • Focus on enhancing o
Slide 7: Progress of Elekta Unity
Progress of Elekta Unity High-field imaging validated – in line with 1.5T diagnostic imaging Radiation delivery validated – in line with Versa HDTM On-line adaptive treatments Performance in a clinical setting demonstrated Linac control system validation in final stage Functional imaging
Slide 8: Unity timeline
Unity timeline ESTRO ASTRO Target: 510k presentation September submission 2017 2018 RSNA Target: First patient November CE-mark treated 2017 H1 2018 8 | Focus where it matters.
Slide 9: World's leading cancer centers as customers
Worlds leading cancer centers as customers 18 customers and 6 installed systems to date 9 | Focus where it matters.
Slide 10: Financial update
Financial update Gustaf Salford, CFO
Slide 11: Good volume growth and cost leverage
Good volume growth and cost leverage Q2 Q2 (SEK M) 2017/18 2016/17 • Net sales +19% Net sales 2,802 2,434 • Good development in China, Western Europe and emerging markets COGS -1,620 -1,409 • Overcompensating the effect from Gross margin (%) produce-to-order implementation last year 42.2% 42.1% • Gr
Slide 12: Operating costs are decreasing
Operating costs are decreasing 2017/18 2016/17 SEK M Q2 Q1 May-Oct Q2 May-Oct Selling expenses -300 -305 -605 -314 -590 1. Administrative expenses -232 -248 -480 -231 -446 R&D expenses 2. -282 -316 -598 -222 -472 TOTAL -814 -869 -1,682 1. Selling and administrative expenses down compared with Q1 2.
Slide 13: EBITA bridge compared with last year (MSEK)
EBITA* bridge compared with last year (MSEK) +40 -141 -34 -48 +49 +272 696 558 EBITA H1 Volume Efficiency & Unity Admin Exchange rate Amortization EBITA 16/17 YTD COGS Selling/R&D Expenses differences and bad debt H1 17/18 13 | Focus where it matters. *Before items affecting comparability and bad de
Slide 14: Good working capital management and cash conversion
Good working capital management and cash conversion Net working capital as % of net sales Operational cash conversion 12% 200% 8% 145% 131% 150% 126% 4% 111% 100% 79% 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 60% 50% -4% -8% 0% -6% 12/13 13/14 14/15 15/16 16/17 Rolling 12-months 14 | Focus where it matters. Note:
Slide 15: SEK ~150 M in currency effect expected for FY 2017/18
SEK ~150 M in currency effect expected for FY 2017/18 Currency effect in first half (SEK M, Y/Y) Estimated effect 2017/2018 (SEK M) • Effect on net sales: -30 • Estimated effect on EBITA (Y/Y) ~150 • Effect on expenses 58 Main currency rates vs. last year • Exchange rate differences: -17 Oct 2016 Oc
Slide 16: Strong backlog position despite recent one-off adjustments
Strong backlog position despite recent one-off adjustments Order backlog (SEK bn) 22,5 21,7 21,9 21,7 22,0 20,1 • SEK 5.3 bn expected to be delivered from backlog in H2 • McLaren one-off backlog adjustment in Q2 Q1 Q2 Q3 Q4 Q1 Q2 2016/17 2016/17 2016/17 2016/17 2017/18 201/18 16 | Focus where it mat
Slide 17: Margin drivers for 2017/18
Margin drivers for 2017/18 Margin drivers 2017/18 (indicative) H1 EBITA bridge (SEK M) COGS Investments Currency savings and efficiency initiatives Volume growth Reach Service growth >20% EBITA-margin EBITA H1 Volume Efficiency & Unity Admin Exchange Amortization EBITA 16/17 YTD COGS Selling/R&D Exp
Slide 18: Richard Hausmann, President and CEO
Richard Hausmann President and CEO 18 | Focus where it matters
Slide 19: Targets for 2017/18
Targets for 2017/18 Net working Reach capital Growth >20% <5% EBITA-margin to net sales 19 | Focus where it matters.
Slide 20: Focus where it matters
Focus where it matters. be) CyElekta