Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Non-Deal Roadshow (October 2015)
20 slides from Elekta Ab Class B's roadshow presentation, Oct 6, 2015
Slide 1: Nordea Lunch Presentation
Elekta Nordea Lunch Presentation October 6, 2015 Håkan Bergström Chief Financial Officer 1
Slide 2: Elekta – leading the future of radiation therapy
Elekta – leading the future of radiation therapy • Overview of Elekta − Net sales of approx. USD 1.4 bn − Active in over 120 markets − 3,800 employees − 4,000 customers • Leader in innovation since 1949 − Stereotaxy, IGRT, VMAT etc. − Leading linac program − No. 1 in software (OIS) − Uniquely positi
Slide 3: Cancer is growing and driving need for cost efficient care
Cancer is growing and driving need for cost efficient care Demographics, higher life expectancy, lifestyle and Improved diagnosis, People, million 30 25 24 Incidence 20 14 15 15 Mortality 10 8 5 Today 33 million cancer patients 0 2012A 2015E 2020E 2025E 2030E 2035E worldwide (within 5 years of diagn
Slide 4: Radiation therapy is currently recommended to treat >60% of indications
Radiation therapy is currently recommended to be used to treat >60% of indications Thousands 0 500 1 000 1 500 2 000 Lung Breast Colorectum Prostate Stomach Liver Cervix uteri Oesophagus Bladder Non-Hodgkin lymphoma Leukaemia >60(1) Pancreas percent Kidney recommended to be treated with radiation th
Slide 5: Radiation therapy is cost efficient, supported by literature and set to increase in importance
Radiation therapy is cost efficient, supported by literature and set to increase in importance 1. Cost efficient 2. Increasing support 3. New technology will modality in literature drive higher usage (Relative cost per treatment) 6x • Imaging • Improved precision 3x • Software 1x Example: Elekta Atl
Slide 6: Elekta has a market leading portfolio of solutions
Elekta has a market leading portfolio of solutions Versa HD™ MOSAIQ® Monaco® 6
Slide 7: Priorities for short-, mid- and long-term
Priorities for short-, mid- and long-term Priorities: • Growth • Profitability • Cash flow 7
Slide 8: Favorable market for radiation therapy
Favorable market for radiation therapy • North America − Consolidation drives large and complex orders with long sales processes − Replacement market with growth potential in software and services • Western Europe − Stable and growing in line with GDP • Emerging markets − Increased risk in some mark
Slide 9: Double-digit growth in service revenues
Double-digit growth in service revenues Service revenues* • Increased value in the MSEK customer offering CAGR: 12% 4 000 • Elekta care 3 000 • Cost-efficient service concept 2 000 • Upgrades in software 1 000 and services 0 FY11/12 FY12/13 FY13/14 FY14/15 Rolling 12- months 9 * Technical service an
Slide 10: Leverage on leading market position in China
Leverage on leading market position in China Net sales SEKM • Market growth expected to 1 500 continue, but lower pace than historic levels 1 250 CAGR − Unmet need – 1.4 linacs/million, 1 000 19% vs target of 2 to 3 linacs/million 750 • Growth within private sector − Growing trend of acquisition of
Slide 11: Leksell Gamma Knife Icon
Leksell Gamma Knife® Icon™ Ultra-precise Microradiosurgery™ with Online Adaptive DoseControl™ • Significant interest from new customers • Upgrade potential: − 200 installed Leksell Gamma Knife® Perfexion™ Regulatory status: − 510k clearance from FDA in August − CE-mark in June − Expected approval in
Slide 12: Atlantic – game changer in radiation therapy
Atlantic – game changer in radiation therapy Article published October 2 incl. Prof. Kevin Harrington, Clinical Lead, Royal Marsden: ”Clinical trials involving patients under the care of The Royal Marsden Hospital are expected to start in 2017, with 20 to 30 patients a day” “It will offer new hope t
Slide 13: Atlantic – project according to plan and on time
Atlantic – project according to plan and on time Atlantic status Imaging • Assembly and test of 12 systems over the next 10 months Integrated solutions • Delivery to all consortium members within 16 months Software • Second system in installation 13
Slide 14: R&D investments for future growth
R&D investments for future growth R&D expenses SEK M % of net sales 3 000 13,1% 12,8% 14% 11,2% 12% 2 500 10% 2 000 8,6% 8,6% 8,8% 8,7% 8,1% 6,9% 8% 6,7% 1 500 6% 1 000 4% 500 • Gross R&D investments 2% will normalize 0 0% 11/12 12/13 13/14 14/15 Rolling- 12 • Net R&D trailing behind months Gross R&
Slide 15: Action program to drive efficiency
Action program to drive efficiency • Two-year plan for improved margins • Several activities and actions launched. More to come − support from external consultants • New organization in place TA R G E T TA R G E T TA R G E T 2-year cost reduction EBITA-margin Lowering net working program of improvem
Slide 16: Initiated efficiency programs
Initiated efficiency programs 1. Reduce costs and increase efficiency in administration 2. Increase efficiency and productivity in: • Marketing • Product development • Service operations 3. COGS - reduction of product costs 4. Reduce working capital 5. Consolidate sites and functions 16
Slide 17: Net working capital at 11% of net sales
Net working capital at 11% of net sales Net working capital / net sales DSO* development SEK M SEK M 6 000 16% 6 000 120 14% 5 000 5 000 100 Ambition 12% 4 000 <10% 11% 4 000 80 10% 3 000 8% 3 000 65 60 6% 2 000 2 000 40 4% 1 000 1 000 20 2% 0 0% 0 0 11/12 12/13 13/14 14/15 Rolling 12- 11/12 12/13 1
Slide 18: Cash conversion – ambition > 70%
Cash conversion – ambition > 70% 140% 126% 127% 120% 100% 88% • High period of 80% 76% 81% investments, will decrease 60% 60% • Working Capital <10% 40% 32% of sales 20% 0% 12/13 13/14 14/15 Rolling 12-months Free cash flow / adjusted net profit Cash flow from operating activities / EBITDA Target 18
Slide 19: Our financial ambitions
Our financial ambitions Short-term Mid-term Long-term (2015/16) (2016/17 – 2017/18) • Return to growth in H2 • 3-5%* net sales growth • >10%* net sales growth 2015/16* per year per year • Improve EBITA margin • Improve EBITA margin with • Growth in EBITA to exceed ─ Cost reductions more than 6** per
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