Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q4 2019/20 Earnings Presentation
32 slides from Elekta Ab Class B's earnings presentation, May 29, 2020
Slide 1: Slide 1
Slide 2: Performing in a difficult time
Performing in a difficult time Q4 and year-end report 2019/20 Dr Richard Hausmann, President and CEO Gustaf Salford, CFO; May 29, 2020
Slide 3: Agenda
Agenda Driving innovation through leadership Q4 and full-year performance Financials Outlook 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 event
Slide 5: Driving innovation through leadership
Driving innovation through leadership 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: US GenesisCare partnership
US GenesisCare partnership Providing RT systems to GenesisCare cancer centers in the US after the acquisition of 21st Century Largest order ever > USD 200 M • Numerous linacs Dan Collins, CEO at GenesisCare states • 11 Elekta Unity “ … we look forward to increasing access to innovative • Service con
Slide 8: Exceeded the Elekta Unity order target
Exceeded the Elekta Unity order target: 80 systems (May, 18) North & Europe, Middle Asia South America East & Africa (EMEA) Pacific Q4 +2 +1 +1 +11 - - Total 27 31 22 8
Slide 9: Acquisition of Kaiku Health strengthens Elekta Digital
Acqusition of Kaiku Health strengthens Elekta Digital • Intelligent personalized digital health interventions – supporting and connecting patients and care teams • Real-world data on the effectiveness of therapies • At present used by >70,000 patients in 45 European clinics and cooperating with lead
Slide 10: Strengthened solution portfolio with new innovations
Strengthened solution portfolio with new innovations Geneva LGK Lightning • First universal gyne- • Revolution in radiosurgery cological applicator • Reduction of for brachytherapy treatment planning time by up to 80 percent and • Designed to treat beam-on-time by up to early-stage cancer 50 percent
Slide 11: Q4 and full-year performance
Q4 and full-year performance 11
Slide 12: Q4: Pandemic resulted in -10% global order intake
Q4: Pandemic resulted in -10% global order intake North & Europe, Middle Asia South America East & Africa (EMEA) Pacific 0% -17% -13% • Bundled deal to Covenant Health Care • Bundled deal win Radiotherapeutisch • Won several public tenders, for six cancer centers in Tenesse Instituut Friesland/the N
Slide 13: Full-year: Order growth in EMEA and Asia Pacific despite pandemic effect
Full-year: Order growth in EMEA and Asia Pacific despite pandemic effect North & Europe, Middle Asia South America East & Africa (EMEA) Pacific -6% 1% 8% 13 Based on constant exchange rates
Slide 14: Q4 – increasingly impacted by Covid-19
Q4 – increasingly impacted by Covid-19 Key Q4 financials • Order intake -10% • Net sales -6% • Gross margin 42.6% (45.2) • EBITA margin 22.1% (24.1) Order and net sales in constant currency 14 14
Slide 15: Q4 and FY 19/20 key financials
Q4 – increasingly impacted FY 19/20 – uptake for Unity by Covid-19 and strengthened portfolio Key Q4 financials Key year-end financials • Order intake -10% • Order intake 1% • Net sales -6% • Net sales 3% – increase in all business lines except Neuro • Gross margin 42.6% (45.2) • Gross margin 42.0%
Slide 16: Better than expected due to strong finish
Better than expected due to strong finish Guidance Guidance Net sales growth 3% 1% EBITA 17.3% 16-17% 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 19/20 16/17 17/18 18/19 19/20
Slide 17: Stereotactic lung cancer treatment
Stereotactic lung cancer treatment Ability to see the tumor means 15-field IMRT • Reduced ITV-PTV margin to 3 mm • Sparing of nearby OARs (esophagus & trachea) • SBRT fractionation: 60 Gy / 8 fx Adapt to Shape mBeam treatment using 15-field IMRT Highly conformal dose distribution Case courtesy of UM
Slide 18: Our Elekta Unity pioneers treating patients routinely
Our Elekta Unity pioneers treating patients routinely 21 installed Elekta Unity systems in clinical use with great feedback on performance 1) 1) 1) 1) 1) 1) 1) Shandong Cancer 2) Hong Kong Sana- Hospital & Institute torium & Hospital 2) 2) 1) Added in Q4 2) 1) Original consortium members 18 2) Three
Slide 19: Financials
Financials C@Elekta 19
Slide 20: Q4: Revenue impacted by Covid in Q4 but strong finish in April
Q4: Revenue impacted by Covid in Q4 but strong finish in April Q4 Q3 Q2 Q1 Q4 (SEK M) 19/20 19/20 19/20 19/20 18/19 • Net sales down 6% in the fourth quarter2) Net sales 4,008 3,656 3,709 3,228 4,086 • Solutions -11% and Service 4% Solutions 2,524 2,216 2,249 1,858 2,708 • Strong finish in April in
Slide 21: FY 19/20: Full year revenue growth 3% and EBITA margin at 17.3%
FY 19/20: Full year revenue growth 3% and EBITA margin at 17.3% (SEK M) FY 19/20 FY 18/19 ∆ • Net sales up 3% in year2) Net sales 14,601 13,555 3% • North and South America: -6% Solutions 8,846 8,394 1% • Europe Middle East and Africa: 9% Service 5,755 5,161 6% COGS -8,464 -7,875 7% • Asia Pacific:
Slide 22: Continued focus on cost control and reduction in expenses in Q4
Continued focus on cost control and reduction in expenses in Q4 Expenses – both FY and Q4 R&D capitalization and amortization 250 FY ∆ vs FY Q4 ∆ vs Q4 197 183 185 188 (SEK M) 200 176 175 19/20 18/191) 19/20 18/191) 166 128 135 132 188 Selling -1,444 7% -380 9% 150 124 104 97 101 100 120 Administrat
Slide 23: EBITA grew by 2% and came in at 17.3%
EBITA grew by 2% and came in at 17.3% 2019/20 EBITA bridge (SEK M) 18.3% 17.3% 19 213 439 63 218 4 84 • Positive contribution from top-line growth • FX rate differences had a 2477 2% 2521 negative EBITA impact of growth -37 MSEK EBITA YTD Volume Product mix R&D and Admin / FX rate diff Amortization
Slide 24: Improved net working capital in Q4
Improved net working capital in Q4 reflecting lower inventory and accounts receivables Net working capital change in the quarter Net Working Capital as % of sales 9,741 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18/19 18/19 18/19 18/19 19/20 19/20 19/20 19/20 -211 45 0% 8,856 Assets -548 -171 -2% -4% -2% Q3 19/20 Inve
Slide 25: Strengthened liquidity and secured long term financing
Strengthened liquidity and secured long term financing to mitigate Covid-19 impacts 1) Net Debt /EBITDA and available cash Maturity profile SEK M SEK M 2,5 > 6 bn 7 000 5000 Average 6 000 2,0 4000 3.4 years 5 000 1,5 4 000 3000 1,0 3 000 2000 2 000 0,5 1000 1 000 0.6 0,0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 26: Capital allocation FY19/20
Capital allocation FY19/20 Dividend Selective acquisitions/invest. • 1.80 SEK/share in two payments • ViewRay (Aug and Feb) • ProKnow • Remaining stake in Palabra Geographic expansion Maturing debt • Increased footprint in emerging • Repaid loans of SEK 1.2 bn markets 26
Slide 27: Outlook
Outlook C@Elekta 27
Slide 28: Dividend decision and no new guidance
• Dividend decision on July, 10 • No new guidance until better quantification of Covid-19 effects possible 28
Slide 29: Covid-19 effect in May
Covid-19 effect in May • Still tough order situation • Installations focusing on execution of strong back log • Supply-chain no major impact • 100% of normal global treatment volumes during week 21, starting May 18 • Cash flow – continue to follow payments closely 29
Slide 30: Accelerating initiative to strengthen our competitiveness and resilience
Accelerating initiative to strengthen our competitiveness and resilience Simplification by digitalization In light of Covid-19 adapt and improve ways of working by deploying Elekta Digital internally Improve cost of products further COGS reduction 30
Slide 31: In summary
In summary • Q4 (Feb-April) was negatively affected by Covid-19 leading to a modest growth for the full year • Exceeded Elekta Unity order target in May • Strong liquidity and financial situation • Strengthend product portfolio • Continued strong underlying need for RT but uncertainties about future
Slide 32: Q&A
Q&A