Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — JP Morgan Healthcare Conference 2012
25 slides from Elekta Ab Class B's conference presentation, January 2012
Slide 1: Elekta – Human Care Makes the Future Possible
Elekta January, 2012 Human Care Makes the Future Possible
Slide 2: Elekta – stronger than ever
Elekta – stronger than ever Every year… Elekta Neuroscience • Close to 1,000,000 patients receive treatment with radiation therapy and radiosurgery equipment from Elekta Elekta Oncology • Whereof 60,000 patients undergo Gamma Knife® surgery Every day… Elekta Software • 100,000 patients receive diagn
Slide 3: Leading product portfolio with high share of recurrent revenues
Leading product portfolio with high share of recurrent revenues Service Aftermarket and software Hardware Net sales 2010/11: Leksell Gamma Knife® Service and maintenance SEK 7.9 bn1 41% 59% Linear accelerators (linacs) Software Brachytherapy (1) Fiscal year 2010/11, excluding Nucletron
Slide 4: Cancer - one of the major diseases
Cancer - one of the major diseases Cause of death USA No % 1 Cardiovascular disease 631 636 26,0 2 Cancer 559 888 23,1 3 Cerebrovascular disease 137 119 5,7 4 Chronic lung disease 124 583 5,1 5 Accidents 121 599 5,0 6 Diabetes mellitus 72 449 3,0 7 Alzheimer 72 432 3,0 8 Flu and pneumonia 56 326 2,3
Slide 5: Cancer incidence is growing
Cancer incidence is growing Cancer incidence, globally Most frequent cancers, globally Million Lung 1,6 25 Breast 1,4 Colorectum 1,2 20 21,4 Stomach 1,0 19,1 Prostate 0,9 16,9 15 15,0 Liver 0,7 13,3 Cervix uteri 0,5 12,7 10 Oesophagus 0,5 Bladder 0,4 5 Non-Hodgkin… 0,4 Leukaemia 0,4 0 0,0 0,5 1,0 1,
Slide 6: Age group +60 years will grow at the highest pace
Age group +60 years will grow at the highest pace 2010A 2030E Population: 5.6 bn +25% 7.0 bn Population +60 years: 0.5 bn +100% 1.0 bn Healthcare spending per capita: $ 20–800 $ Approx. 60 percent* of all new cancer cases occur in age group +60 years Source: Population Division of the Department of
Slide 7: Elekta has strengthened the position in global radiotherapy
Elekta has strengthened the position in global radiotherapy Market share Trend Varian 45% Elekta 35% Accuray 9% Siemens 9% Others 2% Note: Order intake. Sources – company reports
Slide 8: Elekta positioned to capture accelerated growth
Elekta positioned to capture accelerated growth 2011 – Focus on delivering value with solutions - 2010 ”From machine 1st priority Accelerate growth to systems” – from systems to solutions - 2005 • Grow share in established markets with leading extended ”Perfecting the • Full system portfolio solutio
Slide 9: Strategy for sustainable profitable growth
Strategy for sustainable profitable growth Outlook 2015 Growth accelerated to 13-15% • Increased investments in R&D for state-of-the-art clinical solutions • Capture growth opportunities in emerging markets • Build on market-leading position in SRS, SRT and Brachytherapy Continued strong EBIT growth
Slide 10: Growth through innovation
Growth through innovation Drivers • Technical innovations – IMRT, IGRT, VMAT, etc. • Demonstrate value – Proving and communicating value of treatments – Patients having increased interest/influence • Specialization – Multifunctionality – Disease-specific treatments
Slide 11: Innovation through collaboration
Innovation through collaboration Examples of R&D collaborations Elekta International IMRT consortium Elekta Synergy® Research Group Elekta Spine consortium Leksell Gamma Knife® Society Elekta Lung Research Group Elekta Clarity consortium
Slide 12: Recent acquisition of Nucletron - world leader in brachytherapy
Recent acquisition of Nucletron - world leader in brachytherapy • No. 1 in brachytherapy globally - ~60% market share • Large untapped market potential • Highly complementary treatment modality serving many of the same customers as Elekta • Combined customer base of more than 6,000 • Committed to fu
Slide 13: Nucletron within the Elekta group
Nucletron within the Elekta group Four drivers to further accelerate growth Driving awareness 4. of brachytherapy 3. Expanding geographically 2. Developing body sites 1. Exploiting the installed base
Slide 14: Expanding our geographic footprint
Expanding our geographic footprint Stockholm Helsinki Crawley Linköping Dublin Best Hamburg Freiburg Brussels Schwabmünchen Paris Budapest Madrid Milan Innsbruck Edmonton Mägenwil Athens Toronto Montreal Sunnyvale St. Louis Beijing New Jersey Seoul Las Vegas Tokyo Atlanta Shanghai Osaka Dubai Hong K
Slide 15: Emerging markets - accelerating the growth
Emerging markets - accelerating the growth Established markets High healthcare spend Add value and refine: • Evidence-based innovation Make it accessible: • Disease-specific • Affordable treatments • Available – increase • Data management capacity • Education/training/support Emerging markets
Slide 16: Strong historical financial performance in emerging markets
Strong historical financial performance in emerging markets Net sales, SEK bn Success factors CAGR: 30% • Early establishment, 2,2 (e.g. in China since 1982) 1,9 • Local and experienced management 1,3 • Established network with the leading clinics • Adaption to local customer needs – including train
Slide 17: Strong market position in emerging markets
Strong market position in emerging markets Market share new orders, linacs 45-50% 40% 40-45% 45-50% Elekta’s overall market share in emerging markets is >40% 17
Slide 18: We are just at the beginning of the curve
We are just at the beginning of the curve Health care spend per capita and installed linacs per million inhabitants USD and units installed USA Linacs per million people Ireland Denmark Sweden1 Norway Japan Australia Switzerland Taiwan Germany Netherlands Belgium Austria UK France Italy Canada Spain
Slide 19: Emerging markets growing in importance
Emerging markets growing in importance 2014/15E 2010/11 2004/05 20% 30% 40% 60% 70% 80% Emerging markets Mature markets *Net sales, rounded figures 19
Slide 20: Recent financial performance
Recent financial performance 20
Slide 21: Strong order bookings in all regions
Strong order bookings in all regions • Order bookings up 14%* in Q2 – Good demand in all regions – Marginal impact from European debt crisis so far – we are continuously monitoring the development • Growth focus continues – Highest growth rates expected in emerging markets – Nucletron provides broad
Slide 22: Confirming outlook for FY 2011/12
Confirming outlook for FY 2011/12 • Net sales in H1 decreased by 2%* – Challenging comparison with H1 last year, where net sales increased by 15%* – Negatively impacted by higher proportion of sales from emerging markets where time from order to delivery is longer • Operating profit in H1 – Operatin
Slide 23: Record high order backlog
Record high order backlog • Backlog increased to SEK 9.5 bn • Continued good visibility of sales and earnings • Healthy backlog development for Leksell Gamma Knife® and linacs 23
Slide 24: Confirming guidance for fiscal year 2011/12
Confirming guidance for fiscal year 2011/12 • For the fiscal year 2011/12, net sales is expected to grow by more than 20 percent in local currency and operating profit in SEK is expected to grow by more than 20 percent. • The acquisition of Nucletron is expected to contribute to this increase by app
Slide 25: Human Care Makes the Future Possible
Human Care Makes the Future Possible