Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q3 2023/24 Earnings Presentation
24 slides from Elekta Ab Class B's earnings presentation, Feb 29, 2024
Slide 1: Profitable growth and record cash flow
Profitable growth and record cash flow Q3 report 2023/24 Gustaf Salford, President and CEO Tobias Hägglöv, CFO Feb 29, 2024 Restricted Information and Basic Personal Data
Slide 2: Agenda
Agenda • Delivering on our strategy • Q3 financials • Outlook • Q&A Restricted Information and Basic Personal Data
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: Delivering on our strategy
Delivering on our strategy Restricted Information and Basic Personal Data
Slide 5: Delivering on our strategy ACCESS 2025 in Q3
Delivering on our strategy ACCESS 2025 in Q3 Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resili
Slide 6: Delivering on our strategy ACCESS 2025 in Q3
Delivering on our strategy ACCESS 2025 in Q3 • Accelerated innovation and investments in Software are paying off - Elekta MOSAIQ Best in “KLAS: Software and Service Report” award - Kaiku Health pharma deal with BMS - Major order for proton Treatment Planning Software • Access to best cancer care - C
Slide 7: Accelerated Elekta Software R&D investments expediting results
Accelerated Elekta Software R&D investments expediting results KLAS 2024 Ranking of Elekta ONE OIS™ powered by MOSAIQ® Oncology: Radiation Category Oncology: Medical Category #1 +8% in score YoY #2 +5% in score YoY “ Winning this prestigious award, and the increased use of Elekta ONE OIS globally, i
Slide 8: Our innovation agenda will drive growth through more personalization
Our innovation agenda will drive growth through more personalization, with less effort, enabled by software and informatics Across Elekta’s strong portfolio, three focus areas steer our innovation agenda Personalized Elevated 1 precision productivity 2 1 Software CMM with Unity Adaptive CT-Linac Pat
Slide 9: Weak order intake – expected to improve in Q4
Weak order intake – expected to improve in Q4 -17% SEK 42 B 0.98 in Q3 YTD: -7% Order Backlog R12: 1.08 • • China demand impacted by anti-corruption campaign Tough comparables in EMEA & China Book-to-bill Revenue development figures based on constant exchange rates. 9 Restricted Information and Basi
Slide 10: Fifth consecutive quarter of sales growth - service growing faster than installed base
Fifth consecutive quarter of sales growth - service growing faster than installed base in Q3 Installed base 3% 4% Solutions 4% Q3 YTD 9% in Q3 YTD:8% Service 5% 5% • ≈1% pts lower sales due to Red Sea • Continued backlog conversion Q3 22/23 Q3 23/24 Revenue development figures based on constant exch
Slide 11: Q3 financials
Q3 financials Restricted Information and Basic Personal Data
Slide 12: Continued sales growth and improved EBIT
Continued sales growth and improved EBIT Net sales increased by 4%1) (SEK M) Q3 23/24 Q3 22/23 Q2 23/24 • Double-digit growth in China • Mid-single digit growth in Americas and APAC Net sales 4,537 4,337 4,732 Solutions 2,742 2,628 2,836 Adj gross margin of 36.9% (38.4%) Service 1,795 1,709 1,896 •
Slide 13: Leverage on EBIT margin from sales growth and improved operational productivity
Leverage on EBIT margin from sales growth and improved operational productivity Q3 Q3 Operational drivers to the adjusted gross margin 23/24 Operations FX 22/23 Leverage from sales growth Net sales 4,537 175 25 4,337 Continued inflationary pressure on material and salary Growth, % 5.0% 4.0% 1.0% - c
Slide 14: Continued solid cost control
Continued solid cost control Quarterly expenses Y-o-Y comparison Expenses Q31 Q3 Growth2 Q21 Growth2 (SEK M) 23/24 22/23 Y/Y 23/24 Q/Q Selling and Administrative expenses2 declined as successful completion of cost reduction initiative more than Selling -362 -374 -2% -422 -11% offset salary inflation
Slide 15: Focus on R&D for growth and margin expansion
Focus on R&D for growth and margin expansion R&D expenses1 as % of net sales (RTM) 20% 15% 11.9% Innovation and 10% new launches will be a key driver for 7.4% 5% profitable growth 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 21/22 22/23 23/24 Gross R&D Net R&D 1 Excluding items affecting comparability (IAC). 15 Re
Slide 16: Improvement in net working capital
Improvement in net working capital NWC as % of net sales (RTM) Lower working capital (NWC) both compared to last quarter and y-o-y Lower accrued income and accounts receivables 21/22 22/23 23/24 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 following healthy cash collection with high contribution from Southern Europe
Slide 17: Record cash flow driven by increased earnings and improved working capital
Record cash flow driven by increased earnings and improved working capital Q3 Cash flow (SEK M) Operational cash conversion, RTM SEK M 100% 94% 3,000 315 440 + SEK 2,122 M -900 80% 77% -11 71% 2,500 Target >70% 549 60% 55% 2,000 1072 -412 1,500 40% 43% 767 631 1,000 20% 500 1,013 1,991 1,611 2,289 3
Slide 18: Outlook
Outlook Restricted Information and Basic Personal Data
Slide 19: Mid-term outlook until 2024/25
Mid-term outlook until 2024/25 Net sales EBIT margin Dividend policy >50% >7% of annual CAGR expansion net profit Focus on driving shareholder value Restricted Information and Basic Personal Data
Slide 20: Outlook
Outlook • Net sales and EBIT levels for Q4 in line with last year's strong quarter • Drive profitable growth fiscal year 24/25 • Mid-term outlook reiterated • Long-term market trends support growth and investment in high-end radiation therapy equipment and margin expansion • Continued focus on drivi
Slide 21: Summary Q3
Summary Q3 • Fifth consecutive quarter with net sales growth and EBIT margin expansion • Our investments in software are paying off • Record cash flow Restricted Information and Basic Personal Data
Slide 22: We don’t just build technology, we build hope
We don’t just build technology, we build hope Restricted Information and Basic Personal Data
Slide 23: Q&A
Q&A Restricted Information and Basic Personal Data
Slide 24: Restricted Information and Basic Personal Data
Restricted Information and Basic Personal Data