Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q4 2020/21 Earnings Presentation
29 slides from Elekta Ab Class B's earnings presentation, May 28, 2021
Slide 1: Accelerated order growth
Accelerated order growth Year-end and Q4 report 2020/21 Gustaf Salford, President and CEO Johan Adebäck, CFO May 28, 2021
Slide 2: Agenda
Agenda • Precision Radiation Medicine Photo • Q4 and full-year financials • Outlook • Q&A 22
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: Precision Radiation Medicine
Precision Radiation Medicine 4
Slide 5: Helping clinicians improve patients' lives
Helping clinicians improve patients’ lives We are Precision. Radiation. Medicine. Resilience & digitalization Improve market access Accelerate innovation Drive service growth Build strong partnerships 5
Slide 6: Highlights in FY 2020/21 – resilience and acceleration
Highlights in FY 2020/21 – resilience and acceleration Market share gain and strong order finish of year Improved customer and Positive cash flow employee satisfaction in all quarters Successful product Revenue growth launches across portfolio from Q2 Driving Unity Phase II Showing resilience and se
Slide 7: Q4: Strong order growth in the quarter, revenue on similar levels as last year
Q4: Strong order growth in the quarter, revenue on similar levels as last year Order development Revenue development Installed base 18 39% in Q4 20/21 % 1 % in Q4 20/21 Solutions Service 61% 5% 6 1 41% % % 59% Solutions in FY 20/21 in FY 20/21 Service Q4 19/20 Q4 20/21 Order and revenue development
Slide 8: Q4: Improved market conditions and accelerated growth
Q4: Improved market conditions and accelerated growth North & Europe, Middle Asia South America East & Africa Pacific 13% 7% 46% • McKesson several solutions, • Several Versa HD to Belgian Mouscron • India: Unity and Versa HD to software and service Yashoda Hospital and several • Klinikum Chemnitz/G
Slide 9: Elekta has been resilient through Covid – returned to RTM growth in Q4
Elekta has been resilient through Covid – returned to RTM growth in Q4 Order and revenue growth, RTM Order growth, FY 20/21 15% North & South America 23% 10% 6% 5% Asia Pacific 1% 0% FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 5% -5% Europe, Middle East & Africa FY18/19 FY 19/20 FY 20/21 -10% Orders Revenue -4% 9 Or
Slide 10: Continued strong development for Elekta China
Continued strong development for Elekta China Order development Revenue development Continued strong position 25 in FY 20/21 % 30 % in FY 20/21 People’s Liberation Army deal in Q4 19 Linacs TPS and OIS Afterloaders Several orders, More than half booked in Q4 20/21 10 Rest to be booked in Q1 21/22
Slide 11: High interest for Harmony
High interest for Harmony Acibadem Bursa, Turkey Order booked CE approved, 510(k) pending 11
Slide 12: Disclaimer/Reference
Unity clebrtes eylieme i @Elekta
Slide 13: Q4 and full-year financials
Q4 and full-year financials 13
Slide 14: Improved EBITA-margin in FY 20/21
Improved EBITA-margin in FY 20/21 Net sales & EBITA margin rolling 12 months FY 20/21 Q4 MSEK % 16 000 21 Total net sales Total net sales 20 1% 1% 12 000 19 18 Solutions Service Solutions Service 8 000 -1% 5% -2% 6% 17 4 000 16 EBITA margin EBITA margin 15 19.7% 20.3% 0 14 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 15: Q4: Profitability continue to be impacted by higher supply-chain cost and FX
Q4: Profitability continue to be impacted by higher supply-chain cost and FX (SEK M) Q4 20/21 Q4 19/20 ∆ Net sales up 1% Net sales 3,667 4,008 1% • North and South America: -2% Solutions 2,254 2,524 -2% • Europe, Middle East and Africa: 3% Service 1,413 1,485 6% COGS -2,256 -2,301 -2% • Asia Pacific
Slide 16: FY 20/21: Resilience measures drove improved EBITA margin
FY 20/21: Resilience measures drove improved EBITA margin (SEK M) FY 20/21 FY 19/20 ∆ • Net sales up 1% in year Net sales 13,763 14,601 1% • North and South America: -4% Solutions 8,175 8,846 -1% • Europe Middle East and Africa: -2% Service 5,588 5,755 5% COGS -8,153 -8,464 -4% • Asia Pacific: 11% G
Slide 17: Cost control and investment in innovation, some one-off costs in Q4
Cost control and investment in innovation, some one-off costs in Q4 Expenses Q4 Gross R&D expenses, RTM Expenses Q4 Q4 Growth1) MSEK (SEK M) 2020/21 2019/20 Y/Y 1 600 11% Selling -314 -380 -9% 1 400 10% Administrative -292 -250 25% 1 200 R&D (Net) -344 -395 -5% 1 000 9% Total -950 -1 025 1% Gross R&
Slide 18: EBITA growing with 188 MSEK and 7%
EBITA growing with 188 MSEK and 7% 2020/21 EBITA bridge (MSEK) 17.3% 19.7% 2 394 - 62 - 92 • Negative volume effect - 352 473 due to Covid - 175 2,709 • Positive effect from 7% lower sales and R&D 2,521 growth expenses • FX rate differences had a positive EBITA impact of around 135 MSEK EBITA Volume
Slide 19: Significant P&L effect from FX
Significant P&L effect from FX Main currency movements in FY 20/21 EBITA impact Exchange Change1) Share of Share of FX impact Change rate YoY revenue costs EUR/SEK -4% ~30% ~25% Net Sales USD/SEK -9% ~45% ~25% COGS OPEX GBP/SEK -5% ~5% ~25% FX difference in P&L Reverse of LY FX difference in P&L App
Slide 20: Strong cash flow and cash conversion
Strong cash flow and cash conversion 2020/21 Cash flow, SEK M Cash conversion, RTM 100% 3 000 82% 82% 450 80% 109 61% 61% 61% 2 000 3,110 60% 50% 845 47% 45% 40% 35% 1 000 2,551 1,706 20% 0% 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19/20 20/21 EBITDA Other Change in Cash Flow Continuous Cash flow Operational ca
Slide 21: Good net working capital development
Good net working capital development – positively impacted by reduced inventory and good collections Net working capital changes Net Working Capital as % of Sales Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 8,795 19/20 19/20 19/20 19/20 20/21 20/21 20/21 20/21 134 6 0% 59 145 8,451 Assets -2% -2% -3% -3% Q3 20/21 Inven
Slide 22: Strong balance sheet with low net debt
Strong balance sheet with low net debt Net debt1)/EBITDA Maturity profile MSEK 2,0 2000 1,700 1,600 1,5 1500 1,000 1,0 1000 0,5 0.25 500 500 0,0 0 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 SEK GBP 22 1) Excluding lease liabilities
Slide 23: Proposed dividend for FY 20/21
Proposed dividend for FY 20/21 Dividend, SEK per share Pay-out ratio 2,40 2.20 in two instalments 2,00 1,60 1.80 1.80 1,20 0,80 1.00 1.40 67% of net income 0,40 0,00 16/17 17/18 18/19 19/20 20/21 23
Slide 24: Outlook – Mid-term and Q1
Outlook — Mid-term and Q1 @eElekta
Slide 25: Elekta's mid-term outlook – until 2024/25
Elekta’s mid-term outlook – until 2024/25 Growth Margin Capital allocation >7% EBIT % >50% net sales CAGR expansion over period of annual net profit in dividend The drivers of the mid-term outlook will be presented at the upcoming CMD June 7th 25 Note: Elekta’s outlook is based on an average 6-8% ma
Slide 26: Outlook - FY 2021/22 Q1
Outlook - FY 2021/22 Q1 Key drivers • Continued improved overall market situation for orders1) • Improved access for installations driving revenue growth • Continued acceleration of innovation investments 1) Challenging comparison in order % due to Elekta’s largest order ever in Q1 last year. 26 26
Slide 27: Summary Q4
Summary Q4 • Accelerated order growth and gaining market share • Revenue and gross margin still impacted by pandemic • 100th Unity order • Continued strong cash conversion • New mid-term outlook 27
Slide 28: Welcome to Elekta's Capital Markets Day June, 2021
Welcome to Elekta’s Capital Markets Day 7 June, 2021 28
Slide 29: Q&A
Q&A