Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q3 2019/20 Earnings Presentation
30 slides from Elekta Ab Class B's earnings presentation, Feb 20, 2020
Slide 1: Slide 1
Slide 2: Outlook maintained for the full-year – soft quarter
Outlook maintained for the full-year ̶ soft quarter Q3 report 2019/20 February 20, 2020
Slide 3: Agenda
Agenda 1. Q3 performance 2. Financials 3. Outlook 4. Q&A 33
Slide 4: 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 even
Slide 5: 1. Q3 performance
1. Q3 performance Dr. Richard Hausmann President and CEO 5
Slide 6: We are Precision Radiation Medicine
We are Precision. Radiation. Medicine. Everyone with cancer should have access to and benefit from precise, personalized radiotherapy 6
Slide 7: Driving innovation and thought leadership
Driving innovation and thought leadership MR-Linac paradigm shift Integration of ProKnow • Elekta Unity superior high-field system • Centralize, archive, view and analyze treatment planning data • Excellent clinical results from 20 Elekta Unity systems • Automated metrics and performance scorecards
Slide 8: Elekta supporting World Cancer Day
Elekta supporting World Cancer Day Uppsala univeristy hospital promoting Elekta Unity in Sweden Joint quest against women cancer in Vienna 8 Inauguration of 1st (Elekta) linac in Rwanda
Slide 9: Strong interest at Arab Health
Strong interest at Arab Health • Exciting meetings with customers and partners • Signing of multiple orders with customers across the region 9
Slide 10: Q3 – Improved profitability but weak order intake
Q3 – Improved profitability but weak order intake Key Q3 financials • Organic order intake -11% • Organic net sales +5% • Gross margin 42.0% (40.7) • EBITA margin 17.7% (15.2) 10 10
Slide 11: Q3 and 9M key financials
Q3 – Improved profitability 9M – Confidence in full-year but weak order intake outlook Key Q3 financials Key 9M financials • Organic order intake -11% • Organic order intake +6% • Organic net sales +5% • Organic net sales +7% • Gross margin 42.0% (40.7) • Gross margin 41.8% (40.5) • EBITA margin 17.
Slide 12: Creating value by innovation and thought leadership
Creating value by innovation and thought leadership Net sales EBITA margin rolling 12 months rolling 12 months MSEK 20 000 20% Orders 16 000 15% Net sales 12 000 10% 8 000 5% 4 000 0% 16/17 17/18 18/19 Q319/20 16/17 17/18 18/19 19/20 12
Slide 13: Q3: Strong order growth in EMEA and China
Q3: Strong order growth in EMEA and China North & Europe, Middle Asia South America East & Africa (EMEA) Pacific -43% 9% -6% • Negative development in the US • Strong growth both in mature and emerging • Strong order growth in China, driving the region markets continuing taking market shares, being
Slide 14: 9M: Double-digit order growth in EMEA and Asia Pacific
9M: Double-digit order growth in EMEA and Asia Pacific North & Europe, Middle Asia South America East & Africa (EMEA) Pacific -10% +11% +15% 14 9M figures based on constant exchange rates
Slide 15: Elekta Unity – systems ordered as of today
Elekta Unity – 65 systems ordered as of today Reiterating 75 orders by Mid-2020 – most likely already at the end of the FY 19/20 North & Europe, Middle Asia South America East & Africa (EMEA) Pacific Q3 +1 Total 14 30 21 15
Slide 16: Elekta Unity demo in Tübingen: two oligomets in one session
Elekta Unity demo in Tübingen in November: Two oligomets in one session - adapting to the antonomy of the day Oligomet no. 1 Oligomet no. 2 Fraction n Fraction n+1 Rektum Rektum Courtesy: Dr. Gani, University of Tübingen
Slide 17: Partial breast irradiation (PBI)
Partial breast irradiation (PBI) Post Operative PBI Insufficient target visualization with CT following breast reconstruction Planning CT Registration CBCT/ planning CT Target area clearly visualized with MR IMRT SnS Plan, 40.05 Gy /15 fx ATP workflow with MM (avg. 20mins) Planning MR Registration d
Slide 18: Our Elekta Unity pioneers treating patients routinely
Our Elekta Unity pioneers treating patients routinely 20 installed Elekta Unity systems in clinical use with great feedback on performance 1) 1) 1) 1) 1) 1) 1) Shandong Cancer Hong Kong Sana- Hospital & Institute torium & Hospital 1) 18 1) Original consortium members
Slide 19: 2. Financials
2. Financials Gustaf Salford CFO 19
Slide 20: Strong service revenue growth and margin improvement
Strong service revenue growth and margin improvement Q3 Q3 (SEK M) 2019/20 2018/19 • Net sales up 5% for the quarter Net sales 3,656 3,320 • Solutions +3% and Service +8% Solutions 2,216 2,049 • North and South America: -23% Service 1,440 1,270 COGS -2,121 -1,967 • Europe Middle East and Africa: +25
Slide 21: Continued focus on cost control
Continued focus on cost control Capitalization and amortization Expenses Q3 vs. LY* vs. Q2* 250 (SEK M) 2019/20 197 200 176 183 185 175 Selling -339 5% -6% 166 150 128 124 135 132 104 97 101 Administrative -282 10% -4% 100 120 R&D (Net) -415 -1% -1% 50 0 Total -1,036 4% -4% Q1 18/19 Q2 18/19 Q3 18/1
Slide 22: Volume and product mix main driver of increased EBITA margin
Volume and product mix main driver of increased EBITA margin Q3 YTD - EBITA bridge (SEK M) 15.8% 15.0% 15.4% • Strong contribution from 142 197 109 volume and product mix 455 163 86 70 • Last year the MEG divestment contributed 80 bps to EBITA 1635 1492 1422 • On EBITA level currencies had a negativ
Slide 23: Net working capital reflecting Brexit inventory and invoicing seasonality
Net working capital reflecting Brexit inventory and invoicing seasonality Net working capital change in the quarter Net working capital as % of sales 9,741 125 68 Q1 Q2 Q3 Q4 Q1 Q2 Q3 9,374 398 18/19 18/19 18/19 18/19 19/20 19/20 19/20 Assets 88 0% -2% Q2 19/20 Inventory Accounts Accrued Other Q3 19
Slide 24: 3. Outlook
3. Outlook Dr. Richard Hausmann President and CEO 24
Slide 25: Measures to further improve profitability and cash flow
Measures to further improve profitability and cash flow Continue COGS Profitability Drive strong Get rid of improvement in Drivers improvements installations Brexit inventory invoicing and kick in collection process Strong installations Currently worked Increased gross Current except in the US, Impr
Slide 26: Status and short term outlook of the Corona virus effect
Status and short term outlook of the Corona virus effect • Caring about the safety of our personnel Facts about Elekta in China • Service personnel been working to secure client’s systems • ~14% of net sales YTD • No major production or engineering issue at present, neither in • ~600 employees Beiji
Slide 27: Guidance and priorities going forward
Guidance and priorities going forward Guidance Scenario FY 19/20 FY 20/21-22/23 Focus in Q4 19/20 • Continue the success of Elekta Unity Net sales 8-10% 8-10% • Harvesting MOSAIQ Plaza platform • Execution of COGS reduction program >20% • Secure installation EBITA margin ~18% with expansion of up to
Slide 28: In summary
In summary • Good performance except in the US • Strong Elekta Unity sales funnel, confident to reach the target of 75 systems • Improved profitability, both gross margins and EBITA margin • Good underlying business, with strong outlook for product portfolio – new linac to be launched at ESTRO 28
Slide 29: Invitation to follow at ESTRO
at ESTRO Invitation to follow 29
Slide 30: Q&A
Q&A