Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — H1 2014/15 Earnings Presentation
14 slides from Elekta Ab Class B's earnings presentation, 2014
Slide 1: Elekta – Half-year report 2014/15
Elekta – Half-year report 2014/15 Niklas Savander President and CEO Håkan Bergström Chief Financial Officer
Slide 2: First half year summary – FY 2014/15
First half year summary – FY 2014 /15 • Long-term growth strategy unchanged • First half impacted by delayed orders in EMEA and slower than expected market growth • Responsive action plan implemented • Free cash flow (after continuous investments) improved to SEK 173 M (61) in Q2 • Second half year
Slide 3: Financial performance in H1
Financial performance in H1 • Order bookings -3%* in H1 − Growth in North America. Asia grew in Q2 − Weak performance in Europe, Latin America • Net sales -3%* in H1 − Growth in Asia Pacific − Recovery of Leksell Gamma Knife® − Higher software revenues in US in Q2 vs. Q1 − Project delays in Europe f
Slide 4: Progress in product portfolio
Progress in product portfolio • Atlantic (MRI guided linear accelerator) – installation ongoing in Utrecht • Information guided cancer careTM launch • MOSAIQ® rewarded no. 1 ranking in KLAS • MOSAIQ® 2.6 - Meaningful use 2.0 compliant software installations acceleration • Good growth of Leksell Gamm
Slide 5: Strategic agenda for growth
Strategic agenda for growth Innovation Leadership Grow the Pie Customers Commercial Lifecycle Transformation Management Patients 5
Slide 6: Elekta – Half-year report 2014/15
Elekta – Half-year report 2014/15 Håkan Bergström CFO
Slide 7: Financial performance
Financial performance • Order bookings and net sales -3%* in H1 • Gross margin was 42% in Q2, significant improvement vs. Q1 (34%) − Higher software revenues − Growth of Leksell Gamma Knife® • EBITA of SEK 359 (555)** M • Free cash flow (cash flow after continuous investments: SEK 173 M (61) in Q2 −
Slide 8: Drivers for improvement in free cash flow FY 14/15
Drivers for improvement in free cash flow FY 14/15 - Mkr 2013/14 2014/15 change Operating cash flow excl. depreciation and amortization 1,278 >300 Change in net working captial -417 >350 FY 2014/15 Free cash flow: SEK Continous investments minus depreciation and amortization -367 -50 >1,100 M Free c
Slide 9: Net working capital to sales - full-year target: 12%
Net working capital to sales - full-year target: 12% NWC / sales Net working capital 20% Drivers in second half • Lower inventories 15% • DSO – slight increase Target 12% 10% • Seasonal - higher net sales 5% 0% -5% 08/09 09/10 10/11 11/12 12/13 13/14 Q1 Q2 14/15 14/15 9
Slide 10: Activities to lower inventories
Activities to lower inventories MSEK Inventories Activities: 1 600 • Shipment of finished goods 1314 • Stricter control of spare parts Targeted levels 1 200 decrease at 1078 year-end • Centralizing purchasing 800 400 0 FY '2013/14 H1 2014/15 10
Slide 11: DSO improving in H1
DSO improving in H1 DSO* development 180 140 Regional split: 102 North America: -39 days 101 95 Europe & AFLAME: 168 days 100 83 Asia Pacific: 84 days 60 20 • Public deals in Europe with extended payment terms -20 2011/12 2012/13 2013/14 H1 2014/15 • Longer lead times in emerging markets DSO calcula
Slide 12: Favorable currency development
Favorable currency development Reported currency effect for H1: • Net sales +5% FX exposure SEK M 6 000 • Neutral effect on EBITA Operating expenses Revenues 4 000 Estimated positive currency effect* for FY 2 000 2014/15: 0 • Net sales ~7 percentage points • EBITA ~2 percentage points -2 000 USD EUR
Slide 13: Outlook for 2014/15
Outlook for 2014/15: Outlook 2014/15 Net sales growth 4%* EBITA growth ~6%* Free cash flow >SEK 1.1bn Growth drivers in H2: • Asia Pacific – Versa HDTM approved in China and Japan • North America - Leksell Gamma Knife®, software • Europe, MEA – recovery from delayed deals 13 *Based on constant excha
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