Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q1 2020/21 Earnings Presentation
21 slides from Elekta Ab Class B's earnings presentation, Aug 26, 2020
Slide 1: Showing resilience – Q1 report 2020/21
Showing resilience Q1 report 2020/21 Gustaf Salford, Acting President and CEO Johan Adebäck, Acting CFO; Aug 26, 2020
Slide 2: Agenda
Agenda • Precision Radiation Medicine in Q1 • 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 in Q1
Precision Radiation Medicine in Q1 4
Slide 5: We are Precision. Radiation. Medicine.
We are Precision. Radiation. Medicine. Everyone with cancer should have access to and benefit from precise, personalized radiotherapy 5
Slide 6: Q1 highlights
Q1 highlights • Solid performance with positive order growth, increased profitability, and improved cash flow • Driving efficiency initiatives to stay resilient • Supporting customers in remote monitoring with new and improved digital solutions • Entered second commercialization stage of Elekta Unit
Slide 7: Showing resilience in light of Covid-19
Showing resilience in light of Covid-19 Orders Net sales & EBITA margin rolling 12 months rolling 12 months MSEK Q1 iso. MSEK Q1 iso. % +4% -5% 20 000 16 000 20 19 16 000 12 000 18 12 000 8 000 17 16 8 000 4 000 15 4 000 0 14 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Service sales Solutions sa
Slide 8: Succeeded in delivering a positive order growth of 4 percent
Succeeded in delivering a positive order growth of 4 percent North & Europe, Middle Asia South America East & Africa (EMEA) Pacific 66% -20% -12% • Elekta’s largest deal ever – several • Bundled deal with Brescia Unity/Italy • Multiple linacs to one of India’s linacs, software and service – with inc
Slide 9: Elekta Unity – good progress into the second phase of commercialization
Elekta Unity – good progress into the second phase of commercialization • Strong Unity order quarter • Great clinical evidence from an increasing customer base • Research advantage for Elekta Unity • Approval from from China’s National Medical Products Administration on Aug 21 Phase III Volume drive
Slide 10: In the new industry landscape Elekta will be the key global provider
In the new industry landscape Elekta will be the key global provider focusing on Precision Radiation Medicine HPL – new platform Accelerate leadership in treatment solutions Unity Expand the role of Precision Radiation Medicine Elekta Digital Elekta Axis Drive digital solutions for value-based care
Slide 11: Financials
Financials C@Elekta 11
Slide 12: Improved margins through resilience initiatives
Improved margins through resilience initiatives (SEK M) Q1 20/21 Q1 19/20 ∆ • Net sales down 5%2) Net sales 2 981 3 228 -5%2) ̶ Solutions -14% and Service 7% Solutions 1,551 1,858 -14% ̶ North and South America: -4% Service 1,430 1,371 7% COGS -1,614 -1,853 -13% ̶ Europe Middle East and Africa: -1%
Slide 13: Accelerating initiatives to strengthen our resilience
Accelerating initiatives to strengthen our resilience – good progress in Q1 Short-term adjustments & behavior change • Flexible staffing and reduced consultants • Digital marketing and service • Reduced travelling Simplification through digitalization • Digitalization of internal processes • Improve
Slide 14: Continued focus on cost control
Continued focus on cost control Expenses Q1 R&D expenses Expenses Q1 Q1 Growth1) Q4 Growth1) 300 (SEK M) 2020/21 2019/20 Y/Y 2019/20 Q/Q 197 183 185 188 184 200 176 166 175 Selling -271 -365 -23% -380 -24% 149 128 124 135 132 188 104 97 101 Administrative -280 -270 4% -250 20% 100 120 R&D (net) -386
Slide 15: EBITA driven by reduced spend and a high service share
EBITA driven by reduced spend and a high service share Q1 EBITA bridge (MSEK) 13.9% 18.5% 10 6 5 29 • Lower volumes due to 140 Covid-19 106 97 • Higher share of service 23% revenue 551 448 growth • Other includes cost for acquisitions/divestments • FX rate differences had a negative EBITA impact of
Slide 16: Improved cash conversion
Improved cash conversion Q1 Cash flow, SEK M Cash conversion, RTM 100% 3 000 121 80% 2 000 60% 319 651 40% 1 000 20% 211 185 26 0% 0 EBITDA Other Change in Cash Flow Continuous Cash flow Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 NWC from investments after 18/19 19/20 20/21 operating continuous Operational cash con
Slide 17: Outlook
Outlook C@Elekta ily
Slide 18: Proposed dividend for FY 19/20 at today's AGM
Proposed dividend for FY 19/20 at today’s AGM Dividend, SEK per share Pay-out ratio 1.80 1.40 1.00 0.90 32% of net profit 0.50 15/16 16/17 17/18 18/19 19/20 • Board of Directors may call for an EGM to propose an additional dividend • Dependent on the general economic outlook and how Covid-19 will af
Slide 19: Outlook and priorities Q2
Outlook and priorities Q2 • Expect continued negative impact from current market situation; refrain from guidance at the moment • Order situation still impacted • Strong backlog supporting revenue – but continued challenges to access customers • Focus on cost control and stabilizing cash flow from r
Slide 20: Launch of Elekta's new linac
Launch of Elekta’s new linac Sept 15, 2020 Invitation to follow
Slide 21: Q&A
Q&A