Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q2 2020/21 Earnings Presentation
26 slides from Elekta Ab Class B's earnings presentation, Nov 26, 2020
Slide 1: Stable performance during Covid
Stable performance during Covid Q2 report 2020/21 Gustaf Salford, President and CEO Johan Adebäck, Acting CFO Nov 26, 2020
Slide 2: Agenda
Agenda • Precision Radiation Medicine in Q2 Photo • Q2 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 Q2
Precision Radiation Medicine in Q2 4
Slide 5: We are Precision. Radiation. Medicine.
Helping We are clinicians Precision. improve Radiation. patients’ Medicine. lives
Slide 6: Q2 highlights
Q2 highlights Helping clinicians Performing in challenging improve patients’ lives market conditions Launched new Strong Securing Outperforming Strong margin linac Harmony momentum for continued high market both on and cash flow MR-Linac levels of machine order and Received utilization revenue MDR a
Slide 7: Stable development during Covid but below historical levels and long-term potential
Stable development during Covid but below historical levels and long-term potential Order development Revenue development Installed base 6% -2 % 3 % 40% Solutions 60% in Q2 20/21 in Q2 20/21 Service Q2 19/20 Q2 20/21 7 Order and revenue development based on constant currency.
Slide 8: Resilience from a growing service business
Resilience from a growing service business Service revenue and installed base growth Service focus MSEK Devices 8 000 8 000 Growth Expanding across regions and business lines 6 000 6 000 Digitalization and new solutions 4 000 4 000 Innovating and implementing 2 000 2 000 80% linacs connected 0 10/11
Slide 9: Market development in the quarter still impacted by Covid
Market development in the quarter still impacted by Covid North & Europe, Middle Asia South America East & Africa Pacific • US patient volumes increased • Emerging recovery in Europe • China continued at normal early autumn, but accelerating until the end of the quarter levels Covid situation at qua
Slide 10: Strong order recovery in Europe in the quarter, challenging in emerging markets
Strong order recovery in Europe in the quarter, challenging in emerging markets North & Europe, Middle Asia South America East & Africa Pacific -12% 20% -12% H1:25% H1:-3% H1:-12% • Systemwide ProKnow to Veteran’s • First two Harmony to France • First Chinese Unity order after Administration clearan
Slide 11: Unity
China almost back to normal levels, strong interest during recent China International Import Exhibition (CIIE) 1,000 installed linacs Strong interest in Unity Disclaimer/Reference 11
Slide 12: Harmony – balancing great therapy precision with increased productivity
Harmony – balancing great therapy precision with increased productivity Versions Harmony Harmony Pro Greenfield market Replacement market IGRT VMAT to SBRT Regulatory clearance Launched CE-Mark FDA approval NMPA approval Sept 20 Nov 6 Beginning 21E Beginning 22E 12
Slide 13: Elekta Studio - a true 3D image guided adaptive therapy suite
Elekta Studio - a true 3D image guided adaptive therapy suite Disclaimer/Reference 13
Slide 14: Strong global momentum for Elekta Unity
Strong global momentum for Elekta Unity Unity update Ack. # of MR-Linac papers 15th Elekta MR-Linac Consortium meeting 566 users from 48 sites and 18 countries >1,700 patients treated 30% 61 scientific and 27 clinical abstracts >30 different indications 519 398 >20 clinical systems Momentum study 80
Slide 15: Q2 financials
Q2 financials C@Elekta
Slide 16: Showing resilience in light of Covid-19
Showing resilience in light of Covid-19 Net sales & EBITA margin rolling 12 months MSEK % H1 Q2 16 000 21 20 Total net sales Total net sales 12 000 -1% 3% 19 18 Solution Service Solution Service 8 000 17 -5% 6% 2% 4% 4 000 16 EBITA margin EBITA margin 15 20.0% 21.3% 0 14 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 S
Slide 17: Improved margins through resilience initiatives
Improved margins through resilience initiatives (SEK M) Q2 20/21 Q2 19/20 ∆ Net sales up 3% 3,534 3,709 3% • North and South America: -16% Net sales Solutions 2,136 2,249 2% • Europe, Middle East and Africa: -4% Service 1,398 1,460 4% • Asia Pacific: 32% COGS -2,089 -2,188 -4.5% Gross margin (%) 40.
Slide 18: Continued focus on cost control
Continued focus on cost control Expenses Q2 Gross R&D expenses, RTM Expenses Q2 Q2 Growth1) Growth1) MSEK (SEK M) 2020/21 2019/20 Y/Y Q/Q 1 600 12% Selling -279 -360 -16% +8% 1 400 11% Administrative -259 -291 -8% -4% 1 200 10% R&D (Net) -377 -416 -4% +2% 1 000 9% Total -916 -1,067 -9% +2% Q2 Q3 Q4
Slide 19: EBITA driven by reduced spend and a high service share
EBITA driven by reduced spend and a high service share H1 EBITA bridge, SEK M 14.2% 20.0% 21 26 21 168 • Lower volumes due to Covid-19 259 176 93 • Higher share of service revenue and Neuro 32% 1303 • Other includes cost for growth acquisitions/divestments 987 • FX rate differences had a positive EB
Slide 20: Improved cash conversion
Improved cash conversion H1 Cash flow, SEK M Cash conversion, RTM 100% 3 000 163 80% 2 000 588 60% 1497 40% 358 1 000 746 20% 389 0% 0 EBITDA Other Change in Cash Flow Continuous Cash flow Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 NWC from investments after 18/19 19/20 20/21 operating continuous Operational cas
Slide 21: Outlook
Outlook C@Elekta
Slide 22: Strategic priorities going forward
Strategic priorities going forward Continuous resilience activities Accelerate innovation Drive service growth Leverage on partnerships 22
Slide 23: Outlook in Q3
Outlook in Q3 • We expect the new wave of lockdown measures to affect us in the third quarter with continued uncertainty in order growth and increased risk for delayed installations • We focus on resilience activities to control cost and prepare for getting back to growth • We will further strengthe
Slide 24: We will continue helping clinicians saving patients' lives throughout the pandemic
We will continue helping clinicians saving patients’ lives throughout the pandemic – and as long as it takes
Slide 25: ESTRO 2020
©@Elekta ESTRO 2020 Virtual Meeting
Slide 26: Q&A
Q&A