Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q2 2019/20 Earnings Presentation
33 slides from Elekta Ab Class B's earnings presentation, Nov 28, 2019
Slide 1: Slide 1
Slide 2: Good overall growth with one-offs affecting profitability
Good overall growth with one-offs affecting profitability Q2 report 2019/20 November 28, 2019
Slide 3: Agenda
Agenda 1. Q2 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. Q2 performance
1. Q2 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: ASTRO 2019: Chicago
ASTRO 2019: Chicago
Slide 8: Successful launch of Elekta Unity at Jastro
Successful launch of Elekta Unity at Jastro JASTRO 2019: Nagoya Great interest in and excitement about Elekta Unity 8
Slide 9: Strong responses for Elekta's innovative solutions
Strong responses for Elekta’s innovative solutions CIIE 2019: Shanghai • Signed ~30 tentative purchase agreements • Collaboration agreements between Elekta RT Academy and universities & research institutions 9
Slide 10: Taking the next step in Russia
Taking the next step in Russia Linear accelerator equipment plan until 2024 (137 linacs) 70 60 50 40 30 20 10 0 2019 2020 2021 2022 2023 2024 10
Slide 11: External recognition for our innovations and customer services
External recognition for our innovations and customer services 11
Slide 12: 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 20 000 20% Orders 16 000 15% Net sales 12 000 10% 8 000 5% 4 000 0% 16/17 17/18 18/19 Q219/20 16/17 17/18 18/19 19/20 12
Slide 13: Q2 – fx and delayed installations affecting profitability
Q2 – fx and delayed install- ations affecting profitability Key Q2 financials • Organic order intake +5% • Organic net sales +7% • Gross margin 41.0% (41.4) • EBITA margin 14.5% (18.0) 13
Slide 14: Q2 and H1 key financials
Q2 – fx and delayed install- H1 – good overall ations affecting profitability business Key Q2 financials First six months • Organic order intake +5% • Organic order intake +17% • Organic net sales +7% • Organic net sales +8% • Gross margin 41.0% (41.4) • Gross margin 41.7% (40.3) • EBITA margin 14.5
Slide 15: Q2: Very strong order growth except in Europe
Q2: Very strong order growth except in Europe North & Europe, Middle Asia South America East & Africa (EMEA) Pacific +29% -21% +23% • Very strong development • Weak quarter in Europe • Good order intake • Good contribution from Canada • Good growth in emerging markets´, • Good development in India,
Slide 16: H1: Double-digit order growth in all regions
H1: Double-digit order growth in all regions – especially strong growth in Asia Pacific North & Europe, Middle Asia South America East & Africa (EMEA) Pacific +13% +12% +26% Based on constant exchange rates 16
Slide 17: Elekta Unity – systems ordered as of today
Elekta Unity – 64 systems ordered as of today Reiterating 75 orders by mid-2020 North & Europe, Middle Asia South America East & Africa (EMEA) Pacific Q2 +2 +1 +3 Total 14 29 21 17
Slide 18: First Elekta Unity in Sweden – at Uppsala University Hospital
First Elekta Unity in Sweden – at Uppsala University Hospital ”It is really a step into the future” Zahra Taheri-Kadkhoda, Chief Physician and Section Manager for Radiotherapy Translation: Unique method for radiation therapy 18
Slide 19: Adapt to the anatomy of the day
Adapt to the anatomy of the day SBRT 35 Gy / 5 Fx / 1 week 16 Field mBEAM IMRT = VMAT equivalent Adapt to shape Courtesy of Advanced Radiation Oncology Department, Negrar-Verona 19
Slide 20: Our Elekta Unity pioneers treating patients routinely
Our Elekta Unity pioneers treating patients routinely 18 installed Elekta Unitys in clincal use with great feedback on performance 1) 1) 1) 1) 1) 1) 1) Shandong Cancer Hong Kong Sana- Hospital & Institute torium & Hospital 1) 1) Original consortium members 20
Slide 21: 2. Financials
2. Financials Gustaf Salford CFO 21
Slide 22: Good revenue growth but weak EBITA development
Good revenue growth but weak EBITA development (SEK M) Q2 Q2 • Net sales up 7% for the quarter 2019/20 2018/19 • Solutions +6% and Service +8% Net sales 3,709 3,330 Solutions 2,249 2,054 • North and South America: +1% Service 1,460 1,276 • Europe Middle East and Africa: +8% COGS -2,188 -1,953 Gross
Slide 23: Large GBP/SEK change and negative FX balance sheet effect impacting EBITA
Large GBP/SEK change and negative FX balance sheet effect impacting EBITA Main currency movements in Q2 EBITA Impact Exchange Change Share of Share of FX impact Change Comment rate Q2 revenue costs Q2 Weak SEK vs. USD EUR/SEK +0,8% ~25% ~22% Fx effect on Revenue and EUR FX effect on COGS & USD/SEK +
Slide 24: Sales resources and IT projects driving expenses in Q2
Sales resources and IT projects driving expenses in Q2 Expenses Capitalization and amortization 250 Expenses Q2 vs. LY vs. Q1 197 (SEK M) 2019/20 200 176 183 185 166 Selling -360 7% -2% 150 128 124 135 104 97 101 100 120 Administrative -291 18% 7% 50 R&D (Net) -416 -3% -4% 0 Q1 18/19 Q2 18/19 Q3 18/
Slide 25: Strong contribution from volume and project mix on YTD EBITA but negative FX impact
Strong contribution from volume and project mix on YTD EBITA but negative FX impact Q2 YTD - EBITA bridge (SEK M) 16.0% 14.9% 14.2% 97 152 74 318 193 70 74 • Strong contribution from volume and project mix • In YTD FY18/19 the MEG 987 917 987 divestment contributed 1.1 ppts to EBITA EBITA MEG EBITA
Slide 26: Increased inventory off-set by accrued income and customer advances
Increased inventory off-set by accrued income and customer advances Net working capital change in the quarter Net Working Capital as % of net sales 9,374 47 146 268 85 9,092 Assets Q1 Q2 Q3 Q4 Q1 Q2 18/19 18/19 18/19 18/19 19/20 19/20 0% Q1 19/20 Inventory Accounts Accrued Other Q2 19/20 receivable
Slide 27: 3. Outlook
3. Outlook Dr. Richard Hausmann President and CEO 27
Slide 28: Measures to improve profitability and cash flow in H2
Measures to improve profitability and cash flow in H2 COGS Profitability Drive strong Drivers improvements installations kick in Clear accountability through new Business Line focus Continue Cash Flow Get rid of improvement in improvement areas Brexit inventory invoicing and collection process 28
Slide 29: Accountability through business line organization
Accountability through business line organization • Empower ownership • Increased customer focus • Clear identification • More agile Business lines Oncology informatics Treatment Solutions Oncology MR-Linac Linac Neuro Brachy Informatics Solutions Solutions Solutions Solutions Solutions 29
Slide 30: 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 Net sales 8-10% 8-10% • Harvesting MOSAIQ Plaza platform • Execution of COGS reduction program >20% • Secure installation EBITA margin ~18% with expansion of up to
Slide 31: In summary
In summary • Accelerating the MR-Linac paradigm shift with Elekta Unity • Very good order growth in emerging markets • Profitability impacted by one-offs • Good underlying business, with strong outlook for total product portfolio 31
Slide 32: Attending a live Elekta Unity treatment
Attending a live Elekta Unity treatment November University Hospital Tubingen & Hotel Krone Overview
Slide 33: Q&A
Q&A