Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q3 2018/19 Earnings Presentation
31 slides from Elekta Ab Class B's earnings presentation, Feb 22, 2019
Slide 1: Strengthened innovation leadership and continued growth across our markets
“Strengthened innovation leadership and continued growth across our markets” Elekta Q3 report February 22, 2019 Focus where it matters.
Slide 2: Agenda
Agenda. 1. Q3 in short 2. Financials Richard Hausmann Gustaf Salford 3. Key takeaways President and CEO CFO 4. Q & A Focus where it matters.
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 even
Slide 4: 1. Q3 in short
Richard Hausmann President and CEO 1. Q3 in short
Slide 5: We are Precision Radiation Medicine
We are Precision Radiation Medicine Everyone with cancer should have access to and benefit from precise, personalized radiotherapy
Slide 6: Precision Radiation Medicine will drive our growth
Precision • Treat exactly where the tumor is, saving Precision surrounding tissues • Delivering optimal, individualized treatment for every patient Radiation Medicine Radiation • Providing unmatched expertise based on will drive our our heritage • Catering to the global and increasing need Growth fo
Slide 7: Many highlights in the quarter – our strategy in action
Many highlights in the quarter – our strategy in action Precision Radiation Medicine
Slide 8: Double-digit growth in Q3 but unsatisfactory margins
Double-digit growth in Q3 but unsatisfactory margins Order intake Net sales growth +12% (9% YTD) +14% (10% YTD) Gross margin 40.8% EBITA margin 15.2% (40.5% YTD) (15.8% YTD)
Slide 9: Updated guidance for 2018/19
Updated guidance for 2018/19 FY18/19 guidance Updated FY 18/19 guidance Net sales ~7% Net sales ~8% ~7% EBITA EBITA ~20% ~18% EBITA ~18% margin
Slide 10: Strong order growth in all regions
Strong order growth in all regions North & Europe, Middle Asia Pacific South America East & Africa +16% in Q3 +5% in Q3 +20% in Q • Installed base continues • Fourth consecutive growth • Asia Pacific showing very strong to grow overall quarter growth. • Positive contribution from South • Europe cont
Slide 11: Increasing momentum for Elekta Unity
Increasing Launched Regulatory cleared in momentum for MOMENTUM study over 30 countries Elekta Unity First patients treated Launched Unity in China in the U.S. 7 new orders Over 1,000 online in the quarter adaptations 16 minutes minimum Received FDA Over 80 patients fraction timing 510(k) clearance
Slide 12: Our Elekta Unity pioneers treating patients routinely
Our Elekta Unity pioneers treating patients routinely Great feedback from customers on the performance of the system Focus where it matters. Ref: Albert Koong, MD PhD, Chair, MD Anderson Ref: Froedtert Health, Inc., 2019 Department of Radiation Oncology
Slide 13: Elekta Unity – delivering on its promise
Elekta Unity – delivering on its promise See clearly Monitor motion Adapt real time Treat accurately Assess response* Submillimetric soft Live motion monitoring Online adaptation to Highly conformal dose Early response tissue visualization with on 3 planes daily changes in size distribution with 1mm
Slide 14: Unity clinical examples
Unity clinical examples New cases from UMC Utrecht, University of Tübingen, Froedtert/MCW, NKI 1st patient at UMC Utrecht: 1st patient at Univ. Tübingen: UMC Utrecht: Rectal cancer Univ. Tübingen: Head-Neck Univ. Tübingen: Liver met Pelvic oligometastatic lymph Pelvic oligometastatic lymph cancer (n
Slide 15: Elekta Unity – 7 systems ordered in Q3, 39 in total
Elekta Unity – 7 systems ordered in Q3, 39 in total 20 11 8
Slide 16: Successful Arab Health congress
Successful Arab Health congress • Signed first Elekta Unity order for the region – Bahrain's King Hamad University Hospital • Signed reference site agreement with King Hussein Cancer Center in Jordan • Orders for over USD 20 M signed with Iran, Egypt, Bahrain, Algeria and Jordan • Great customer int
Slide 17: Elekta Precision Radiation Summit in China
Elekta Precision Radiation Summit in China Launched Elekta Unity, Workshops focused on the Launched Elekta RT Academy Leksell Gamma Knife® Icon™ clinical application of Icon, and new Elekta Axesse™ Elekta Unity, HDRS and QA
Slide 18: 2. Financials
Gustaf Salford CFO 2. Financials
Slide 19: Strong net sales growth but weaker gross margin in the quarter
Strong net sales growth but weaker gross margin in the quarter Q3 Q2 Q1 Q3 (SEK M) 2018/19 2018/19 2018/19 2017/18 Net sales 3,320 3,330 2,819 2,756 • Net sales up 14% in Q3 Solutions 2,049 2,054 1,582 1,629 - 10% YTD - growth in all regions Service 1,270 1,276 1,237 1,127 - Solutions: 12% YTD - gro
Slide 20: EBITA% vs. last year impacted by project mix, price pressure, Unity commercialization
EBITA% vs. last year impacted by project mix, price pressure, Unity commercialization and less capitalization Q3 YTD - EBITA bridge (SEK M) 361 18.6% 578 15.8% 386 56 70 30 Currency effect Q3 160 (SEK M, Y/Y) YTD 2018/19 • Effect on net sales: +586 1521 1492 • Effect on expenses -484 • Exchange rate
Slide 21: Expenses declined in Q3 compared to Q2
Expenses declined in Q3 compared to Q2 Expenses Q3 Q2 Q1 Growth* Q3 Growth* (SEK M) 2018/19 2018/19 2018/19 Q/Q 2017/18 Y/Y Selling -310 -320 -324 -3% -277 7% • Continued focus on cost control Administrative -247 -237 -265 3% -232 0% • Expenses decrease vs. Q2 in constant currencies R&D -400 -411 -3
Slide 22: EBITA expected to improve in Q4 reaching ~18% for the full year
EBITA expected to improve in Q4 reaching ~18% for the full year – change from previous ~20% Margin drivers Q4 2018/19 (indicative) Investments in Net sales Market mix R&D innovation & Currency EBITA FY growth leverage Capitalization geographic expansion ~18% Increased Higher share Estimated FX EBITA
Slide 23: Increase in working capital from Accounts Receivables
Increase in working capital from Accounts Receivables Net working capital change in the quarter Net working capital as % of net sales 8,815 139 86 Assets 792 20% 8,031 45 14% 15% 8% 10% Q2 18/19 Inventory Accounts INI Other Q3 18/19 receivable 2% 5% 0% 13/14 14/15 15/16 16/17 17/18 17/18 Q1 Q2 Q3 -5
Slide 24: Decline in Cash Conversion mainly from increased working capital
Decline in Cash Conversion mainly from increased working capital Cash Conversion bridge Operational cash conversion and EBITDA Q3 Q2 Q1 (SEK M) 2018/19 2018/19 2018/19 SEK M 150% EBITDA 545 639 427 52% Working capital -466 -81 -699 4 000 100% Financial net -40 -29 -25 Paid tax -98 -47 -21 50% 2 000
Slide 25: Financial position: Net Debt/EBITDA at 0.61
Financial position: Net Debt/ EBITDA at 0.61 and an external debt of USD 50m with maturity 21/22 was repaid Net debt / EBITDA Maturity profile SEK M 1,6 5000 2000 1,4 1800 4000 1600 1,2 1 430 1400 1,0 3000 1200 958 1 000 0,8 0.61 1000 893 0,6 2000 800 715 0,4 600 463 1000 400 0,2 200 0,0 0 Q4 Q1 Q2
Slide 26: Elekta is prepared for Brexit
Elekta is prepared for Brexit Mitigation measures within supply chain, regulatory affairs and movement of people New legal entity set up in Sweden to transfer regulatory and transactional activities from UK to EU Continued ramp-up of production volumes in China Focus where it matters. Link to invent
Slide 27: 3. Key takeaways
Richard Hausmann President and CEO 3. Key takeaways
Slide 28: In summary
In summary • Double-digit order and net sales growth • Strong Unity demand and great customer feedback • Margins to improve • Investment in innovation and market expansion • Precision Radiation Medicine is the future
Slide 29: Updated guidance for 2018/19
Updated guidance for 2018/19 FY18/19 guidance Updated FY 18/19 guidance Net sales ~7% Net sales ~8% ~7% EBITA EBITA ~20% ~18% EBITA ~18% margin
Slide 30: Q&A
Q&A We now welcome any of your questions Richard Hausmann Gustaf Salford President and CEO CFO Focus where it matters.
Slide 31: Thank you
Thank you Next report; Q4, May 29, 2019 Gunilla Öhman, Head of IR (interim) E: gunilla.oehman@elekta.com T: +46707638125