Slide 1: Elekta Q3 road show
Elekta Q3 road show Human Care Makes - the Future Possible () E L E KTA
Slide 2: Elekta – stronger than ever
Elekta – stronger than ever Every year… Elekta Neuroscience • Close to 1,000,000 patients receive treatment with radiation therapy and radiosurgery equipment from Elekta Elekta Oncology • Whereof 60,000 patients undergo Gamma Knife® surgery Every day… Elekta Software • 100,000 patients receive diagn
Slide 3: Cancer incidence is growing
Cancer incidence is growing Cancer incidence, globally Most frequent cancers, globally Million Lung 1,6 25 Breast 1,4 Colorectum 1,2 20 21,4 Stomach 1,0 19,1 Prostate 0,9 16,9 15 15,0 Liver 0,7 13,3 Cervix uteri 0,5 12,7 10 Oesophagus 0,5 Bladder 0,4 5 Non-Hodgkin… 0,4 Leukaemia 0,4 0 0,0 0,5 1,0 1,
Slide 4: Age group +60 years will grow at the highest pace
Age group +60 years will grow at the highest pace 2010A 2030E World population: 7.0 bn +20% 8.3 bn Population +60 years, world: 760 M +82% 1.4 bn Healthcare spending per capita: $ 20–7,000 $ Approx. 60 percent* of all new cancer cases occur in age group +60 years Source: Population Division of the D
Slide 5: Strategy going forward
Strategy going forward 2011 – Focus on delivering value with solutions - 2011 ”From machine 1st Priority to systems” Accelerate growth – from systems to solutions - 2005 ”Perfecting the 2nd Priority Grow the margin and establish machine” industry leading efficiency
Slide 6: We are just at the beginning of the curve
We are just at the beginning of the curve Health care spend per capita and installed linacs per million inhabitants USD and units installed USA Linacs per million people Ireland Denmark Sweden1 Norway Japan Australia Switzerland Taiwan Germany Netherlands Belgium Austria UK France Italy Canada Spain
Slide 7: Leading product portfolio with high share of recurrent revenues
Leading product portfolio with high share of recurrent revenues Service Aftermarket and software Hardware Net sales 2010/11: Leksell Gamma Knife® Service and maintenance SEK 7.9 bn1 41% 59% Linear accelerators (linacs) Software Brachytherapy (1) Fiscal year 2010/11, excluding Nucletron
Slide 8: Elekta has strengthened the position in global radiotherapy
Elekta has strengthened the position in global radiotherapy Market share Trend Varian 45% Elekta 35% Accuray 9% Siemens 9% Others 2% Note: Order intake. Sources – company reports
Slide 9: Emerging markets growing in importance
Emerging markets growing in importance 2014/15E 2010/11 2004/05 20% 30% 40% 60% 70% 80% Emerging markets Mature markets *Net sales, rounded figures 9
Slide 10: Strong market position in emerging markets
Strong market position in emerging markets Market share new orders, linacs 45-50% 40% 40-45% 45-50% Elekta’s overall market share in emerging markets is >40% 10
Slide 11: Strong historical financial performance in emerging markets
Strong historical financial performance in emerging markets Net sales, SEK bn Success factors CAGR: 30% • Early establishment, 2,2 (e.g. in China since 1982) 1,9 • Local and experienced management 1,3 • Established network with the leading clinics • Adaption to local customer needs – including train
Slide 12: Expanding our geographic footprint
Expanding our geographic footprint Stockholm Helsinki Crawley Linköping Dublin Best Hamburg Freiburg Brussels Schwabmünchen Paris Budapest Madrid Milan Innsbruck Edmonton Mägenwil Athens Toronto Montreal Sunnyvale St. Louis Beijing New Jersey Seoul Las Vegas Tokyo Atlanta Shanghai Osaka Dubai Hong K
Slide 13: Emerging markets - accelerating the growth
Emerging markets - accelerating the growth Established markets High healthcare spend Add value and refine: • Evidence-based innovation Make it accessible: • Disease-specific • Affordable treatments • Available – increase • Data management capacity • Education/training/support Emerging markets
Slide 14: Growth through innovation
Growth through innovation Drivers • Technical innovations – IMRT, IGRT, VMAT, etc. • Demonstrate value – Proving and communicating value of treatments – Patients having increased interest/influence • Specialization – Multifunctionality – Disease-specific treatments
Slide 15: Innovation through collaboration
Innovation through collaboration Examples of R&D collaborations Elekta International IMRT consortium Elekta Synergy® Research Group Elekta Spine consortium Leksell Gamma Knife® Society Elekta Lung Research Group Elekta Clarity consortium
Slide 16: Strong order bookings and net sales
Strong order bookings and net sales • Demand remained strong – Order bookings up 11%* in Q3 and 9%* YTD – Including Nucletron and in SEK, order bookings increased 45% in Q3 and 19% YTD • Net sales growth in all regions – Net sales grew by 17%* in Q3 and 5%* YTD – Nucletron on track • Strong operatin
Slide 17: North and South America
Regional overview North and South America May – Jan May – Jan SEK M Change 2011/12 2010/11 Order bookings +12% 2,594 2,321 Net sales +6% 2,113 1,997 • Order bookings in North America grew by 14%* in Q3 and YTD − Good demand for partnership agreements • Challenging Y/Y comparison in Latin America • C
Slide 18: Europe, Middle East and Africa
Regional overview Europe, Middle East and Africa May – Jan May – Jan SEK M Change 2011/12 2010/11 Order bookings +25% 2,579 2,059 Net sales +10% 2,075 1,882 • Order bookings was up 34%* in Q3 and 11%* YTD • Strong development in Northern Europe, such as Germany and the Netherlands. Weaker in Souther
Slide 19: Asia Pacific
Regional overview Asia Pacific May – Jan May – Jan SEK M Change 2011/12 2010/11 Order bookings +21% 2,013 1,661 Net sales +20% 1,741 1,449 • Order bookings declined 4%* in Q3 but increased by 12%* YTD • Seasonally weakest period • Signs of improvements in Japan during Q3 • Contribution margin: 30% (
Slide 20: Nucletron performance on track
Nucletron performance on track • Good momentum with 11% organic growth last 12 months • Financial contribution from mid-September – Order bookings: SEK 909 M – Net sales: SEK 618 M – EBIT: SEK 175 M • Integration progressing well – Sales organisation maintained – Completion of back office integratio
Slide 21: Cash flow
Cash flow • Cash flow from operating activities amounted to SEK 476 M (460) • Cash conversion rate at 48% (58) for the first nine months • Cash outflow related to Nucletron transaction and integration of approx. SEK 70 M • Cash flow and working capital in fiscal year 2011/12 expected to follow the h
Slide 22: Confirming outlook for operating profit and adjusting net sales outlook for fiscal year 2011/12
Confirming outlook for operating profit and adjusting net sales outlook for fiscal year 2011/12 • For the fiscal year 2011/12, net sales is expected to grow by 16-18 percent in local currency and operating profit in SEK is expected to grow by more than 20 percent. • The acquisition of Nucletron is e
Slide 23: Good demand expected to continue
Good demand expected to continue North and South America • Strong demand in North America • Good prospects for continued growth in Latin America Europe, Middle East and Africa • Stable growth in most established and emerging markets • Slower development in southern parts of Europe Asia Pacific • Str
Slide 24: Human Care Makes the Future Possible
Human Care Makes the Future Possible