Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q1 2016/17 Earnings Presentation
18 slides from Elekta Ab Class B's earnings presentation, Sep 1, 2016
Slide 1: Q1 Report
Q1 Report September 1, 2016 - Stockholm Richard Hausmann President and CEO Håkan Bergström Chief Financial Officer
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: Improved margins and cash flow in Q1
Improved margins and cash flow in Q1 › Gross order intake grew by 4%* › Produce-to-order-process implemented. Net sales declined by 15%* › Transformation on track. Half of savings target reached › EBITA** margin improved to 9% (3) › Cash flow*** from continuous investments improved with over SEK 400
Slide 4: Gross order intake grew by 4* percent in Q1
Gross order intake grew by 4* percent in Q1 Europe, Middle East and Africa Asia Pacific North and South America › Strong growth in Western › 30%* growth in China › US: robust development in Europe. Major win in Austria – services. Low hardware Vienna Hospital Association › Good development in India
Slide 5: Challenging market conditions
Challenging market conditions WESTERN EUROPE CHINA NORTH AMERICA Pent-up demand but overall weak economic Growth, but lower Replacement market. growth than historic levels JAPAN Hospital consolidation Stabilization from low levels EASTERN EUROPE & MIDDLE EAST ASIA PACIFIC SOUTH AMERICA Political ins
Slide 6: Leading offering in two strong businesses
Leading offering in two strong businesses MEDICAL ONCOLOGY ANALYTICS DECISION SUPPORT ONCOLOGY INFORMATICS BIG • Comprehensive & Patient centric DATA MOSAIQ® • Vendor & Treatment agnostic • Adaptable for markets / customers TREATMENT SOLUTIONS Gamma Knife Linac RT and Radiosurgery & Brachytherapy MR
Slide 7: MRI guided radiation therapy: MR-linac
MRI guided radiation therapy: MR-linac State-of-the-art radiotherapy system Integrated MR-imaging Adaptive workflow Launch in second half of 2017 Ambition: 75 orders until 2019
Slide 8: Five priorities to accelerate our performance
Five priorities to accelerate our performance Pursue excellence in all we do Profitable growth 1 Work as One company Strengthen customer experience and sales Cost Be recognized as the innovation leader Complete our cost turnaround program 7
Slide 9: Financial update
Financial update •Håkan Bergström •CFO 8
Slide 10: The ambition is to improve EBITA margin to 20%
The ambition is to improve EBITA margin to 20% Margin development (illustrative) Transformation program targets 47% 46% 43% Gross margin EBITA margin of 20% by 2017/18 40% 41% 41% Cost reductions of Produce-to-order 23% 22% EBITA margin SEK 700 *M Net working capital with one-off 20% to sales below
Slide 11: Working our way to excellence
Working our way to excellence PRIORITIZE ROADMAP WORKING CAPITAL CENTERS OF EXCELLENCE EFFICIENCY Site consolidation Reduced lead times - and inventory CONSOLIDATE FUNCTIONS COGS REDUCTION SHARED SERVICES PROCESS IMPROVEMENTS 10
Slide 12: Improved margins
Improved margins Cost reductions offset temporary lower net sales 2015/16 2016/17 (SEK M) Q1 Q1 Revenue 2 239 1 882 COGS (variable) -839 1 -636 1. Net sales decreased by SEK 357 M − Produce-to-order process implemented Variable margin 62,5% 66,2% Gross margin 39,7% 40,6% 2 2. Gross margin at 41% (40
Slide 13: Currency impact
Currency impact Weakening of GBP have a positive effect on bottom line CURRENCY EFFECT Q1 MAIN CURRENCY RATES CURRENCY EXPOSURE Q1 vs. last year FY16/17 • Effect on revenue: -1,2% • EBITA effect SEK +115 M Q1 Q1 Change CURRENCY EFFECT FY 2016/17E 15/16 16/17 Other • Effect on revenue: 0% EUR/SEK 9,3
Slide 14: Underlying cash flow improved by over SEK 400 M
Underlying cash flow improved by over SEK 400 M CASH FLOW 2015/16 2016/17 (SEK M) Q1 Q1 Operating cash flow -8 -37 Working capital 1. Change in working capital -341 -103 − Lower receivables and accrued income Cash flow from operating − Lower payables, reflecting reduced volumes -349 -139 activities
Slide 15: Net working capital at target of 5% to net sales
Net working capital at target of 5% to net sales SEK M KEY WORKING CAPITAL ASSETS NET WORKING CAPITAL as % of SALES 5 000 Accounts 15% 4 000 receivables 3 000 Accrued 10% 2 000 income 5,0% 1 000 5% Inventories 0 Q1 Q2 Q3 Q4 Q1 0% 15/16 15/16 15/16 15/16 16/17 1507AC 1510AC 1601AC 1604AC 1607AC SEK M
Slide 16: Improved backlog position
Improved backlog position Q1 2015/16 Q1 2016/17 (SEK bn) (SEK bn) 20.1 Book and bill in % 17.9 by quarter* – indication Q1: 75% Q2: 50% 7.0 Q3: 25% 6.2 Q4: <10% 2.2 1.9 Order backlog Revenue Q1 Revenue from Order backlog Revenue Q1 Expected backlog revenue from backlog FY 2016/17 15 *Share of orde
Slide 17: Welcome to Elekta's Capital Markets Presentation at ASTRO
Welcome to Elekta’s Capital Markets Presentation at ASTRO September 26 – Boston, USA
Slide 18: Slide 18