Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q2 2023/24 Earnings Presentation
24 slides from Elekta Ab Class B's earnings presentation, Nov 30, 2023
Slide 1: Continued profitable growth
Continued profitable growth Q2 report 2023/24 Gustaf Salford, President and CEO Tobias Hägglöv, CFO Nov 30, 2023 Restricted Information and Basic Personal Data
Slide 2: Agenda
Agenda • Delivering on our strategy • Q2 financials • Outlook • Q&A Restricted Information and Basic Personal Data
Slide 3: 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 4: Delivering on our strategy
Delivering on our strategy Restricted Information and Basic Personal Data
Slide 5: Delivering on our strategy ACCESS 2025 in Q2
Delivering on our strategy ACCESS 2025 in Q2 Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resili
Slide 6: Strong order backlog and order growth in Q2
Strong order backlog and order growth in Q2 Total Americas EMEA APAC 4% 9% 7% -1% 17% excl China 42% excl China Book-to-bill: 1.05 Good growth driven Double-digit growth in Great growth in India, Order backlog: SEK 46 B by Latin America Europe, partly offset by Australia and Thailand the Middle East
Slide 7: Key deals by region
Key deals by region Americas EMEA APAC Contributing to Panama as Enabling Ukrainians access Providing cutting-edge leader in Central America to modern RT devices technology to India • Cuidad de la Salud Panamá • Tro be placed in half of Ukraine’s • Krishna Institute of Medical provinces and the Nati
Slide 8: Fourth consecutive quarter of good revenue growth
Fourth consecutive quarter of good revenue growth Installed base 5% 10% in Q2 H1:9% Q2 Solutions 15% H1 13% Service 4% 6% • Good backlog conversion • Growth in all regions -( • Double-digit growth in EMEA Q2 22/23 Q2 23/24 and APAC Revenue development figures based on constant exchange rates. 8 Rest
Slide 9: Acquisition of eBx provides perfect fit with Elekta's brachy business
Acquisition of eBx provides perfect fit with Elekta’s brachy business Acquisition rationale • Expand the brachy portfolio with different technology - electronic brachytherapy – i.e. miniaturized low energy X-ray source • Grow adoption through greater access - limited shielding and no bunker needed •
Slide 10: ASTRO – great momentum for Unity and Elekta One
ASTRO – great momentum for Unity and Elekta One • Building momentum in the U.S. market • ~40% more activity in booth compared to ASTRO 2022 • Great interest for clinical experience of Unity Comprehensive Motion Management • U.S. Launch of our Elekta One software suite Restricted Information and Basi
Slide 11: Q2 financials
Q2 financials Restricted Information and Basic Personal Data
Slide 12: Continued strong revenue growth and improved EBIT
Continued strong revenue growth and improved EBIT Net sales increased by 10%1) (SEK M) Q2 23/24 Q2 22/23 Q1 23/24 • Double-digit growth in EMEA and APAC • Americas turned to growth Net sales 4,732 4,081 3,828 • Good growth in both emerging and mature markets Solutions 2,836 2,322 1,995 Service 1,896
Slide 13: Leverage on EBIT margin from high revenue growth and improved operational productivity
Leverage on EBIT margin from high revenue growth and improved operational productivity Q2 Q2 Operational drivers to the adjusted gross margin 23/24 Operations FX 22/23 Leverage from high revenue growth and successful cost Net sales 4,732 420 231 4,081 reduction 10% 6% Growth, % 16% - Relatively high
Slide 14: Cost control with selected increase in customer events
Cost control with selected increase in customer events Quarterly expenses Y-o-Y comparison Expenses Q21 Q2 Growth2 Q11 Growth2 (SEK M) 23/24 22/23 Y/Y 23/24 Q/Q Continued positive impact from last year’s Cost-reduction initiative despite inflationary pressure Selling -422 -397 4% 425 -2% Selling exp
Slide 15: Continued focus on investments for future growth
Continued focus on investments for future growth Accelerated innovation program R&D expenses1 as % of net sales (RTM) Personalized Elevated 1 precision productivity 2 20% 15% ➢ xClinical decision support ➢ Resource optimization 12.0% ➢ xPatient’s role in care ➢ Mobility of care pathway Integrated 10
Slide 16: Improvement in net working capital
Improvement in net working capital NWC as % of net sales (RTM) Lower net working capital (NWC) as share of net compared to Q2 in last two years Higher customer advances driven by increased 21/22 22/23 23/24 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 shipments and order intake 1% Remained high accrued income due to
Slide 17: Cash conversion increased to above 70 percent
Cash conversion increased to above 70 percent driven by increased earnings and improved working capital Q2 Cash flow (SEK M) Operational cash conversion, RTM SEK M 80% 76% 71% 2 500 60% 55% -251 60% 2 000 -551 -348 -900 74 43% 1 500 800 549 623 40% -412 1 000 20% 500 211 0% 0 Q2 22/23 Q3 Q4 Q1 23/24
Slide 18: Outlook
Outlook Restricted Information and Basic Personal Data
Slide 19: Outlook until 2024/25
Outlook until 2024/25 Net sales EBIT margin Dividend policy >50% >7% of annual CAGR expansion net profit Focus on driving shareholder value Restricted Information and Basic Personal Data
Slide 20: Outlook
Outlook • Revenue growth and EBIT margin expansion expected to continue into next quarter, however, at slower pace • Continued inflationary pressure • Long-term market trends to support growth and investment in high-end radiotherapy equipment and margin expansion Restricted Information and Basic Per
Slide 21: Summary Q2
Summary Q2 • Very strong order growth excluding China • Fourth consecutive quarter with revenue growth and expanded EBIT margin • Improved working capital and cash flow • Great momentum with market-leading product portfolio, especially with Unity and Elekta One • Attractive acquisition for expansion
Slide 22: We don't just build technology, we build hope
We don’t just build technology, we build hope Restricted Information and Basic Personal Data
Slide 23: Q&A
Q&A Restricted Information and Basic Personal Data
Slide 24: Restricted Information and Basic Personal Data
Restricted Information and Basic Personal Data