Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Investor Day (June 2012)
93 slides from Elekta Ab Class B's investor day presentation, Jun 19, 2012
Slide 1: Capital Markets Day
Capital Markets Day June 19 in Stockholm
Slide 2: Capital Markets Day agenda
13.00 Market fundamentals ● Priorities ● Outlook Tomas Puusepp, President and CEO 13:40 Financial update and near term outlook Håkan Bergström, CFO 14:20 Coffee break Region North America 14:40 Jay Hoey, EVP Region North America Market update ● Performance ● Priorities Region Europe, Africa, Latin A
Slide 3: Welcome to Elekta
Welcome to Elekta Capital Markets Day 2012 Tomas Puusepp President and CEO
Slide 4: Elekta is the pioneer in modern cancer care
Elekta is the pioneer in modern cancer care Elekta Elekta Oncology Neuroscience No. 2 No. 1 Elekta Elekta Brachytherapy Software Solutions No. 1 No. 1 (OIS) Elekta Elekta Neuroscience Brachytherapy No.No. ElektaSolutions Software Elekta 1 No. 11 (OIS) Oncology No. 2
Slide 5: Cancer – a major disease
Cancer – a major disease Cause of death in USA 2010 Cardiovascular disease 24% Cancer 23% Chronic lung disease 6% Cerebrovascular disease 5% Accidents 5% Alzheimer 3% Diabetes mellitus 3% Nephritis, nephrotic syndrome 2% Source: Centers for Disease Control and Prevention, preliminary data from 2010.
Slide 6: Age group +60 years will grow at the highest pace
Age group +60 years will grow at the highest pace 2010A 2030E World population: 7.0 bn +20% 8.3 bn Population +60 years, world: 760 M +82% 1.4 bn Approx. 60 %* of all new cancer cases occur in age group +60 years Source: Population Division of the Department of Economic and Social Affairs of the Uni
Slide 7: Increasing population with cancer
Increasing population with cancer 1. Number of new cancer cases 2. Increasing population living Millions with cancer 25 • Improved treatments - cancer Total becomes more of a chronic 20 disease 15 Men • Re-treatments 10 Women 5 0 2010 2015E 2020E 2025E 2030E WHO forecast of new cancer excluding mela
Slide 8: Radiation therapy's role in cancer care has strengthened
Radiation therapy’s role in cancer care has strengthened • Technology advancements – Imaging – Precision – Motion management – Safety • Value to the patient and society – From ”palliative” to ”curative” – Cost effective compared with chemotherapy and surgery
Slide 9: Strategy going forward
Strategy going forward 2011 – Focus on delivering value with solutions - 2011 ”From machine 1st Priority to systems” Accelerate growth – from systems to solutions - 2005 ”Perfecting the 2nd Priority Grow the margin and establish machine” industry leading efficiency
Slide 10: Strategy going forward
Strategy going forward 2011 – Focus on delivering value with solutions - 2011 ”From machine 1st Priority to systems” Ambition to grow net sales by more than 50% from - 2005 2011/12 to 2014/15* ”Perfecting the machine” 1. Pioneer modern cancer care 2. Emerging markets 3. Competitor exiting market * I
Slide 11: Elekta has strengthened its position in global radiotherapy
Elekta has strengthened its position in global radiotherapy Trend Varian 48% Elekta 39% Accuray 8% Siemens 5% Others -%* Note: Order intake. Sources – company reports * Accurate data missing
Slide 12: Strong growth with increased profitability
Strong growth with increased profitability SEK M Net Sales SEK M EBIT CAGR CAGR 16% 27%
Slide 13: Pioneer modern cancer care
Pioneer modern cancer care 1. Investments in R&D SEK M % of net sales Focus areas: 800 12% • Leadership in cancer care 10% with linear accelerators 600 8% • Drive SRS market with Leksell Gamma Knife® 400 6% • Software – capture full 4% potential 200 2% • Brachytherapy – develop new body sites 0 0% -
Slide 14: Leading linear accelerator program for cancer care
Leading linear accelerator program for cancer care • Global installed base of over 10,000 linear accelerators – Elekta ~2,500 • Recently launched Agility™* – Outstanding benefits for the patients – Unmatched product specifications • Potential to upgrade Elekta’s existing installed base – ~40% of ins
Slide 15: Elekta will continue to drive stereotactic radiosurgery market
Elekta will continue to drive stereotactic radiosurgery market Stereotactic radiosurgery and Leksell Gamma Knife® treatment in USA All courses of treatments Metastatic tumors CAGR CAGR 6% 35 135 11% 17 150 24 115 98 055 660 2004 2010 2004 2010 Source: IMV 2011
Slide 16: Accelerate growth with Leksell Gamma Knife
Accelerate growth and capture full potential with Leksell Gamma Knife® • Disease specific data for Leksell Gamma Knife® superiority – Clearence for 5 indications • Strengthen marketing capabilities and work closer to patient organizations and end users Number of peer-reviewed papers Metastatic tumor
Slide 17: Vision - software development
Vision - software development • Incorporate all software competence and experience into one platform serving all oncology software needs • MOSAIQ® RTP
Slide 18: Treatment planning software - leveraging strong market positions
Treatment planning software - leveraging on strong market positions OIS Software ≈ 50% Linear accelerator ≈ 35% TPS Software ≈ 23% Source: Elekta
Slide 19: Acquisition of Nucletron – growth opportunities
Acquisition of Nucletron – growth opportunities • Cross-selling to customer base – 1,000 unique customers • Leverage on Elekta’s strong positions in emerging markets • Expansion with current indications and add new – Rectal cancer • Focus on recurrent revenue growth
Slide 20: Emerging markets
Emerging markets 2. - Solid underlying growth drivers Aging population 2010 2050 Male Female Male Female • Age group over 60 years will grow more than three times, from 491 in 2010 million to 1.6 billion 2050E • Government-sponsored cancer programs as main driver for expansion • Mainly greenfield pr
Slide 21: Elekta has strong performance in emerging markets
Elekta has strong performance in emerging markets Elekta emerging markets Net sales, SEK bn No. 1 CAGR No. 1 2,6 26%* 2,2 1,9 1,3 No. 1 No.1 08/09 09/10 10/11 11/12 (shared) *Excl. Nucletron CAGR is 22%
Slide 22: Double digit growth in emerging markets
Double digit growth in emerging markets 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 S
Slide 23: Leadership and strong growth
Emerging markets Leadership and strong growth 2014/15E 2011/12 2004/05 20% 30% 40% 60% 70% 80% Emerging markets Mature markets • Invest ahead of the curve • Focus on training and education • Product development specialized for emerging markets *Net sales, rounded figures
Slide 24: Competitor with installed base of ~2,000 linacs exiting the market
Competitor with installed base of ~2,000 linacs exiting the market 3. Siemens installed base Europe AFLAME: 600+ linear accelerators North America: Asia Pacific: 400+ linear accelerators 900+ linear accelerators • Total installed base represents ~20% of global capacity • Elekta has software (OIS) in
Slide 25: Potential opportunity over SEK 500 M in additional annual revenues
Potential opportunity over SEK 500 M in additional annual revenues • Global strategy and dedicated team already in place • Comprehensive program announced to update installed LANTIS OIS on Siemens systems to newest version of Elekta MOSAIQ® • Elekta has the most competitive and comprehensive oncolog
Slide 26: Acquisition of Radon ltda. in Brazil
Acquisition of Radon ltda. in Brazil Brazil is significantly expanding cancer care capacity • Brazil’s leading service company mainly for Siemens linear accelerators • Will grow Elekta’s customer base with ~25% • Forecast to add over USD 6 M to Elekta’s net sales for FY 2012/13 • Accretive to EPS al
Slide 27: Acquisitions add to Elekta's growth
Acquisitions add to Elekta’s growth 1997 2003 • Philips Radiation • Neuromag Therapy Division 2006 • (80%) of Beijing 2008 2011 Medical Equipment • CMS • Nucletron Institute (BMEI) 1972 Elekta was founded 2005 2007 2010 • IMPAC Medical • 3D Line • Resonant Systems Medical • Medical Intelligence
Slide 28: Elekta's strategy for sustainable profitable growth
Elekta’s strategy for sustainable profitable growth Ambition to grow net sales by more than 50% from 2011/12 to 2014/15* • Pioneer modern cancer care • Emerging markets • Competitor exiting market Continued strong EBIT growth • Recurrent revenue growth towards 50% of net sales • Continued improved e
Slide 29: Capital Markets Day
Capital Markets Day June 19 in Stockholm
Slide 30: Financials
Financials Håkan Bergström CFO
Slide 31: Elekta's strategy for sustainable profitable growth
Elekta’s strategy for sustainable profitable growth Ambition to grow net sales by more than 50% from 2011/12 to 2014/15* • Pioneer modern cancer care • Emerging markets • Competitor exiting market Continued strong EBIT growth • Recurrent revenue growth towards 50% of net sales • Continued improved e
Slide 32: Strong growth with increased profitability
Strong growth with increased profitability SEK M Net Sales SEK M Profitability 2 000 1 750 CAGR 20% 16% 1 500 19% 17% 1 250 13% 1 000 12% 11% 12% 750 10% 500 250 0 2005A -06A -07A -08A -09A -10A -11A -12A EBIT result EBIT margin
Slide 33: 2011/12 Another record year
2011/12 Another record year • Order bookings up 10%* – Strongest growth in Asia Pacific and North and South America – Order bookings up 11%* in Q4 – Elekta is gaining market share • Net sales grew 18%** – Strong deliveries in Q4 – Nucletron on track – contributed to the growth with 11 percentage poi
Slide 34: Improved operational leverage 2011/12
Improved operational leverage 2011/12 • EBIT improved SEK 435 M (+29%) excluding currency effects. • Nucletron integration executed according to plan • Gross margin improved to 46.6% (46.4) + COGS reduction + Service efficiency Geographical expansion • SG&A as % of sales improved to 20.3% (21.6) + L
Slide 35: North and South America
Regional overview North and South America May – Apr May – Apr SEK M Change 2011/12 2010/11 Order bookings +16% 4,081 3,507 Net sales +11% 3,122 2,818 • Order bookings grew with 20%* during the fourth quarter and 11%* in fiscal year • In North America order bookings grew with 13%* in fiscal year • Go
Slide 36: Europe, Middle East and Africa
Regional overview Europe, Middle East and Africa May – Apr May – Apr SEK M Change 2011/12 2010/11 Order bookings +19% 3,653 3,077 Net sales +15% 3,206 2,795 • Order bookings decreased with 8%* (+35%) in Q4, but increased 5%* in fiscal year • Strong development in Northern Europe, such as Germany and
Slide 37: Asia Pacific
Regional overview Asia Pacific May – Apr May – Apr SEK M Change 2011/12 2010/11 Order bookings +24% 3,081 2,477 Net sales +19% 2,720 2,291 • Order bookings increased with 19%* in Q4 and with 14%* in fiscal year • Strong growth in China and India. Elekta is the market leader in the region. • Signs of
Slide 38: Elekta's linac installed base growth: CAGR 8%
Elekta’s linac installed base growth: CAGR 8% No. Installed base 2 500 2,461 2,308 2,081 North and 2 000 1,936 South America 1,835 1 500 Asia Pacific 1 000 500 Europe AFLAME 0 -07/08 -08/09 -09/10 -10/11 -11/12 • Europe AFLAME +5% (CAGR) • Americas +7% • Asia Pacific +13%
Slide 39: Service and software growing in importance
Service and software growing in importance Key drivers of profitable growth North and South America Hardware 54% Service & Lifecycle software Services Today Ambition Europe, Middle East, Africa 43% 50% Service & software Asia Pacific • Updated and expanded service offering – remote services • Potent
Slide 40: Profitability is linked to share of recurrent revenues
Profitability is linked to share of recurrent revenues Emerging markets Established markets 2011/12 2011/12 Share of recurrent revenue Contribution margin
Slide 41: Contribution margin development
Contribution margin development SEK M 4 000 37% 36% 3 500 35% 34% 35% 35% 35% 3 000 33% 32% 2 500 32% AsiaPacific 28% EMEA 2 000 27% Americas 1 500 1 000 500 0 2009 2010 2011 2012
Slide 42: Cash flow
Cash flow • In FY 2011/12 cash flow from operating activities amounted to SEK 635 M (840) • Cash conversion rate at 57% (59) for the fiscal year – excluding SEK 170 M related to Nucletron integration – Inventory build-up related to AgilityTM launch – Growth in emerging markets resulting in increased
Slide 43: Shareholder distribution
Shareholder distribution SEK M 500 In accordance with the dividend policy, the Board proposes a 450 dividend of SEK 5.00 (4.00) 400 per share for 2011/12, 350 corresponding to approx. SEK 473 M and 39% of net profit 300 250 Repurchase 200 Dividend 150 100 50 0 05/06 06/07 07/08 08/09 09/10 10/11 11/
Slide 44: Outlook fiscal year 2012/13
Outlook fiscal year 2012/13 Human Care Makes the Future Possible C) ELEKTA
Slide 45: Outlook for fiscal year 2012/13
Outlook for fiscal year 2012/13 • For the fiscal year 2012/13, net sales is expected to grow by more than 15% in local currency, incl. Nucletron – Organic growth >10% • Operating profit in SEK is expected to grow by more than 17%, incl. Nucletron • Currency is estimated to have a positive effect of
Slide 46: Capital Markets Day
Capital Markets Day June 19 in Stockholm
Slide 47: Capital Markets Day agenda
13.00 Market fundamentals ● Priorities ● Outlook Tomas Puusepp, President and CEO 13:30 Financial update and near term outlook Håkan Bergström, CFO 14:20 Coffee break Region North America 14:40 Jay Hoey, EVP Region North America Market update ● Performance ● Priorities Region Europe, Africa, Latin A
Slide 48: Region North America
Region North America Jay Hoey Executive Vice President Region North America
Slide 49: North America is the world's largest market for radiation therapy
North America is the world’s largest market for radiation therapy North America and the world • 7% of worlds’ population • 30% of the world’s linear accelerators United States • Population: 314 M, cancer incidence: 1,5 M (~0.47%) • ~63% receive radiation therapy Canada • Population: 36 M, cancer inc
Slide 50: North America market dynamics – Mexico
North America market dynamics Mexico Radiation therapy private/public sector • ~70% government and ~30% Private • Government has IMSS, ISSTEE, and Institutes of Oncology • Private Sector - ~150 Hospitals (10% have linacs) Factors driving demand • Government initiatives for expanding RT, private sect
Slide 51: North America market dynamics – Canada
North America market dynamics Canada Radiation therapy both a growth and a replacement market • 33% growth in linear accelerators in Ontario, Quebec and British Columbia since 2000 • Planned expansions across the country – external beam, brachytherapy and neuro oncology • Linear accelerators replace
Slide 52: North America market dynamics – United States
North America market dynamics United States Radiation therapy a replacement market • ~ 80% of linacs are replacement machines Multiple factors drive demand • Higher cancer incidence with age/population • Equipment age (large installed base = large replacement market) • New technology (SRS/SRT, VMAT,
Slide 53: Elekta growth in declining US market
Elekta growth in declining US market (years 2008 – 2010) North America, organic growth CAGR 6% FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 Organic growth: 9% incl. Nucletron
Slide 54: Elekta North America installed base landscape
Elekta North America installed base landscape Elekta’s balanced product mix in North America is contributing to good top/bottom line performance: Market share of installed base Oncology information systems ~63% Brachytherapy ~60% Cancer registry ~35% TPS ~15% External beam delivery ~12%
Slide 55: Elekta North America is gaining market share
Elekta North America is gaining market share Market share - installed base Market share – new orders (FY11/12) (FY11/12) Management Analysis Accuray 2% Accuray Elekta Siemens 3% 7% 12% Elekta Siemens 10% 24% Varian 72% Varian 71% Elekta’s installed base, age 70 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9
Slide 56: Elekta is NA market leader in brachytherapy
Elekta is NA market leader in brachytherapy • Market leader in North American brachytherapy with large installed base (>60% market share) • Large set of common customers (~500) • Opportunities in brachytherapy software sales • HDR as boost to shorten fractionation growing in popularity • Good opport
Slide 57: Elekta is NA market leader in oncology information systems
Elekta is NA market leader in oncology information systems Leverage “stickiness” of software solutions: • HIT/EMR connectivity, imaging connectivity, delivery equipment connectivity, outcomes analysis, reporting, user-created “add-ons” Leverage open systems: • > 98% of centers with Elekta/Siemens li
Slide 58: Customer and patient focus is key to NA success
Customer and patient focus is key to NA success Example of recently won customer contract • Network of over 100 RO clinics in US • Standardize on Elekta’s MOSAIQ® Oncology Information System (OIS) • Conversion of OIS systems from other vendors • 5 Elekta Infinity™ linear accelerators included in the
Slide 59: Elekta education & support is key to NA success
Elekta education & support is key to NA success Elekta Awards & Industry Rankings MDBuyline ranks Elekta #1 KLAS recognizes Elekta with Black Book honors Elekta vendor in 2010 & 2011 critical awards & rankings with top 2011 rankings in 2012, 2011, 2010 Highest overall composite rankings for four cat
Slide 60: Elekta North America going forward
Elekta North America going forward… Installed base • Enhance service excellence: – Most recent MD BUYLINE/KLASS reports rank Elekta #1 • Provide advanced solutions: – Streamlined workflow = higher efficiency – Advanced treatments = higher effectiveness • Expand consulting solutions: – Meaningful use
Slide 61: Capital Markets Day
Capital Markets Day June 19 in Stockholm
Slide 62: Region Europe & AFLAME
Region Europe & AFLAME Tomas Puusepp CEO
Slide 63: The region has shown strong growth during the last six years
The region has shown strong growth during the last six years Order development Sales development EUR M EUR M 450 400 n Latin America CAGR CAGR 400 350 15% n Europe, 14% 350 300 Africa, 300 Middle East 250 250 200 200 150 150 100 100 50 50 0 0 06/07 '07/08 '08/09 '09/10 '10/11 11/12 06/07 '07/08 '08/
Slide 64: Region Europe & AFLAME market share
Region Europe & AFLAME Linac market share of installed base and order intake Share of installed base 11/12 Share of order intake FY11/12 Other 6% Other 6% Siemens 4% Siemens 20% 30% Elekta 48% Elekta Varian 42% Varian 44% Market share gain in both mature and emerging markets
Slide 65: Customer and patient focus is key to our success
Customer and patient focus is key to our success Examples of recently won customer contract National Health Service, UK • Increasing demand and aging installed base of linacs in UK • Order of 10 Elekta Synergy® linear accelerators and service • Planned to be delivered within 18 months • Option to up
Slide 66: Market dynamics by key markets
Market dynamics by key markets Eastern Europe Western Europe • Russia important market • Mainly replacement • Growing interest for oncology business and neuro in Central Asia • After sales and service • Distributors in many markets increasingly important Middle East • Dependency on oil price Latin A
Slide 67: Recent market trends
Recent market trends Country-specific initiatives/cancer investment programs Russia Brazil • Elekta is no.1 in new sales • Comprehensive cancer and installed base care as standard • Five-year National Oncology • 500,000 patients per linac program, started in 2009. determined by Ministry 10-15 clinic
Slide 68: Europe and AFLAME – priorities going forward
Europe and AFLAME – priorities going forward • Expansion on growing markets in Northern Europe • Replacements and aftermarket revenues in Southern Europe • Continue to invest ahead of curve in emerging markets • Siemens conversions • Agility™ upgrade
Slide 69: Elekta is European market leader in brachytherapy
Elekta is European market leader in brachytherapy • Market leader in Europe with large installed base (>60% market share) • Vast majority of European Key Opinion Leaders choses Nucletron solutions for Brachytherapy • Cross selling opportunities in Elekta’s installed base • Nucletron is dominant Brac
Slide 70: Product development through collaboration
Product development through collaboration • Recently signed strategic alliance with The Netherlands Cancer Institute-Antoni van Leeuwenhoek Hospital • NKI/AVL will become a reference and beta test site for Elekta • NKI/AVL and Elekta will work on a number of specific projects under this agreement –
Slide 71: Capital Markets Day
Capital Markets Day June 19 in Stockholm
Slide 72: Region Asia Pacific
Region Asia Pacific Gilbert Wai Executive Vice President Asia Pacific
Slide 73: Elekta is market leader in region Asia Pacific
Elekta is market leader in region Asia Pacific • Almost 60% of the world population but less than 30% of the linacs • Approx. 2,100 radiation oncology facilities across the region with almost 3,000 linacs • High investment in new radiation therapy centers • Elekta Asia Pacific have around 500 employ
Slide 74: Solid underlying growth drivers
Solid underlying growth drivers Asia – distribution of population 2010 2050 Age (years) Age (years) Male Female Male Female • Aging population – driving cancer incidence • Improving diagnostics • Awareness about cancer – training and education • Government-sponsored health care programs • Radiation
Slide 75: Asia Pacific health expenditure per capita
Asia Pacific Health expenditure per capita (USD) USA 8 203 Germany 4 657 Australia 4 604 Japan 3 246 Hong Kong 2 226 Singapore 1 698 South Korea 1 530 Taiwan 1 358 Malaysia 340 China 200 Thailand 126 India 82 • High spending in the top markets Philippines 81 …but lower than USA and Germany Vietnam 6
Slide 76: Elekta is No. 1 in terms of new orders
Elekta is No. 1 in terms of new orders Total market share New Order 11/12 BrainLab 2% Accuray 3% Other 6% Siemens 7% 42% Elekta Varian 40% 76
Slide 77: Leksell Gamma Knife
Elekta’s market position Leksell Gamma Knife® SRS/SRT Market share Asia Pacific installed base BrainLab – 114 units whereof 32% Perfexion™ 25% 52% Accuray Elekta 23% Leksell Gamma Knife RO Far East 6% Australia 1% India 6% Taiwan 6% Great opportunity for upgrade to Perfexion™ 49% Korea 13% Japan Dev
Slide 78: Strong financial performance in Asia Pacific
Strong financial performance in Asia Pacific USD M Success factors 450 • Early establishment e.g. in 400 China since 1982 Brachy 350 CAGR Neuro • Build up strong local organization with 300 25% local talent – China, India, Australia Software 250 • Strategic investment in Oncology 200 – R&D, manufact
Slide 79: Priorities for Asia Pacific
Priorities for Asia Pacific • Develop infrastructure to support the entire region including training and education • Adapted range of solutions to suit all market needs • Expand software and service business • Capture full Siemens opportunity • Accelerate SRS segment 79
Slide 80: Accessibility- education and training overview
Accessibility- education and training overview Elekta training facilities Elekta classrooms Sydney, Australia Beijing, China Shanghai, China Chennai, India (Nucletron) Tokyo, Japan Elekta linac facilities EBMEI, Beijing, China Zhouzhou Hospital, China TMSC Nasu facility, Japan (Toshiba) Customer tra
Slide 81: China – good growth expected
China – good growth expected General market share • Elekta has a No. 1 position in oncology and well positioned to maintain market Shinva Neusoft 3% leadership Siemens 10% 7% • Third largest medical device market in 44% Elekta the world- domestic manufacturers in Varian 36% low technology sector • C
Slide 82: Elekta in China - great success
Elekta in China - great success Now 3rd largest country in Elekta Net sales SEK M 800 700 CAGR 28% 600 500 400 300 200 100 0 FY FY FY FY 08/09 09/10 10/11 11/12 82 CAGR is 25% excluding Nucletron
Slide 83: China health care expenditure
China Total annual health care expenditure 2006 - 2015E USD bn Billion dollar 800 700 600 CAGR 500 21% 400 300 200 100 0 -06 -07 -08 -09 -10 -11E -12E -13E -14E -15E 83 Source: Frost & Sullivan 2011
Slide 84: Hospital structure in China
Hospital structure in China Hospitals (~1,300) Class III >500 beds Class II hospitals (~6,000) >100 beds Class I and other small hospitals (~13,000) <100 beds 84
Slide 85: Need of training and education in China
Need of training and education in China Source: Prof. Li, Nov. 2011
Slide 86: Education and collaboration support to key universities
Education and collaboration support to key universities 86
Slide 87: Market dynamics - India
Market dynamics - India Accuray 4% Other 4% 4% 4% • Growth in Indian market is expected to be significant over the next years Varian 42% 50% Elekta • Elekta achieved 46% (29% excl. Nucletron) growth in order bookings 2011/12 • Standard of treatment continues to improve across region but still restra
Slide 88: Elekta in India - strengthened positions
Elekta in India - strengthened positions Elekta India, net sales CAGR Elekta’s rapidly growing strength 31% in oncology • Growing perception of Elekta as a better service provider • Entry into key strategic accounts: Major Cancer Hospitals, Corporate Groups and Oncology Franchises FY FY FY FY 08/09
Slide 89: The private sector is dominant
The private sector is dominant Private health care • Approx. 4.3% of GDP • 80% of medical expenses are out of pocket • Targeting the rich, middle and lower middle classes • Indian health care growth at CAGR of 15% - 90% from private sector • Growth in medical tourism, USD 2 bn by 2012 89
Slide 90: Cancer incidence - treatment in India
Cancer incidence - treatment in India Approximately 960,000 new cases identified annually 70% Receive 3 radiation therapy 30% Treated 70% No treatment Approx. 3 million cases at any time. Of the 30% who receive treatment a high percentage receive RT because patients often present in late stages.
Slide 91: Japan – starting to grow
Japan – starting to grow Japan Market Share FY11/12 Treatment delivery devices (incl. LGK) • Second largest device market globally Accuray 1% 1% Elekta LGK with highly complex regulatory environment Brainlab 9% 9% Tomotherapy • High installed base drives large replacement 7% Elekta market Siemens 9%
Slide 92: Success factors going forward
Success factors going forward Continue to drive growth in oncology Continue to expand with Leksell Gamma Knife® Expansion of software and aftermarket services Accelerate brachytherapy success with organic growth and market expansion initiatives Drive awareness through education/training and promotio
Slide 93: Capital Markets Day
Capital Markets Day June 19 in Stockholm