Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q1 2021/22 Earnings Presentation
27 slides from Elekta Ab Class B's earnings presentation, Aug 25, 2021
Slide 1: Market recovery with short-term cost challenges
Market recovery with short-term cost challenges Q1 report 2021/22 Gustaf Salford, President and CEO Johan Adebäck, CFO August 25, 2021 Restricted Information and Basic Personal Data
Slide 2: Agenda
Agenda • Towards the best cancer care, Q1 Photo • Q1 financials • Outlook • Q&A 22 2 Restricted Information and Basic Personal Data
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: Towards the best cancer care, Q1
Towards the best cancer care, Q1 4 Restricted Information and Basic Personal Data
Slide 5: Towards a world where everyone has access to the best cancer care
ACCESS ACCESS TOWARDS A WORLD WHERE TOWARDS A WORLD WHERE 2025 EVERYONE HAS ACCESS EVERYONE HAS ACCESS TO THE BEST CANCER CARE TO THE BEST CANCER CARE Restricted Information and Basic Personal Data
Slide 6: Our strategy ACCESS 2025
Our strategy ACCESS 2025 Drive Accelerate innovation partner integration with customer across the cancer utilization in mind A world where care eco-system everyone has access to the best cancer care Be the customer Drive adoption lifetime companion across the globe People Resilience & Process Excell
Slide 7: Highlights in Q1
Highlights in Q1 Improving patients’ lives by working Performing in challenging together with our customers market conditions Deepened FDA clearance Going direct in Improved Temporary strategic for Harmony growth markets: market demand headwinds to partnership Indonesia with large gross margin with
Slide 8: Improved market conditions for orders – large variations among regions
Improved market conditions for orders – large variations among regions Total -4 17% % excl. largest deal ever in comparing quarter Americas EMEA APAC -7% 80% 0% -4% Very strong growth in Americas Europe strong growth, Middle East & Strong growth in China and India, when excluding largest deal ever A
Slide 9: Revenue starting to recover
Revenue starting to recover Revenue development, RTM Installed base 12% 10% 10% 10% 8% 8% 8% Q1 6% 6% 21/22 4% 4% 3% 2% 1% 0% 0% 0% -1% -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 20/21 Q1 21/22 FY 19/20 FY 20/21 FY 21/22 Revenue development based on constant currency. 9 Restricted Information and Basic Perso
Slide 10: Go direct in Indonesia – driving adoption
innovation partner Access to integration Go direct in Indonesia – driving adoption the best cancer customer adoption care across the globe Market characteristics Elekta direct in Indonesia • Population ~275 million • Newly established office • Highly underserved market • Already double-digit • 80% p
Slide 11: Strong results in sustainability
Strong results in sustainability Strategic milestone 2024/25: Installed linac base +300 million people in underserved1) in underserved markets markets to get access via Elekta’s installed linac base Since Q4 2019/20 the installed linac 12% base has increased by 12% in under- served markets During Q1
Slide 12: Unity market access program focus on evidence generation
Unity market access program focus on evidence generation Regulatory Evidence development Reimbursement program Unity registration in all major >500 clinical abstracts U.S., China, Japan, Europe markets First submission made in >350 peer-reviewed articles the U.S. Evidence from pancreas, liver, MOMEN
Slide 13: Q1 financials
Q1 financials 13 Restricted Information and Basic Personal Data
Slide 14: Strong revenue growth in solutions
Strong revenue growth in solutions Rolling 12 months (RTM) development Q1 figures SEK M % 16 000 16 Total net sales 14 8% 12 000 12 Solutions Service 8 000 12% 3% 10 4 000 54% 46% 8 (52%) (48%) 0 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EBIT margin 6.7% Solutions sales Service sales EBIT margin 14 Net sales gro
Slide 15: Profitability impacted by higher costs
Profitability impacted by higher costs (SEK M) Q1 21/22 Q1 20/21 ∆ Net sales up 8% Net sales 3,009 2,981 8% • Americas: -4% Solutions 1,631 1,551 12% • EMEA: 7% Service 1,378 1,430 3% • APAC: 20% COGS -1,894 -1,614 17% Gross margin down, temporary impacts Gross margin (%) 37.1 45.9 -8.8 ppts Expense
Slide 16: Gross margin continue to be impacted by pandemic driven cost increases
Gross margin continue to be impacted by pandemic driven cost increases Q1 gross margin bridge (%) -3.8% 0.3% • Higher costs for supply- 38.5% chain, logistics and 2.6% 37.1% -0.5% service • Positive impact from higher share of solutions revenue Gross Supply-chain, Currency Solutions/ Other Gross mar
Slide 17: Acceleration leading to increased costs
Acceleration leading to increased costs Quarterly expenses Rolling 12 months SEK M Gross R&D % of net sales Expenses 1) 1) Q1 Q1 Growth Growth 1 800 15% (SEK M) 2021/22 2020/21 Y/Y Q/Q Selling -316 -271 22% 2% 1 600 13% Administrative -274 -280 1% -8% 1 400 11% R&D (Net) -391 -386 4% 14% 1 200 Total
Slide 18: Effects from the pandemic
Effects from the pandemic Development Development -1 yr vs pre-Covid Travel Marketing Logistics & service 18 Restricted Information and Basic Personal Data
Slide 19: Weaker cash flow but continued strong cash conversion
Weaker cash flow but continued strong cash conversion Q1 Cash flow (SEK M) Operational cash conversion, RTM 100% 3 000 82% 82% 77% -161 80% 61% 61% 479 2 000 60% 50% -398 47% 45% 40% 35% -81 1 000 -262 -343 20% 0% 0 EBITDA Other1) Change in Cash flow Continuous Cash flow Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 N
Slide 20: Net working capital negatively impacted by increased inventory
NWC negatively impacted by increased inventory to mitigate extended supply-chain lead times and reductions in other liabilities for paid bonus Net working capital changes (SEK M) Net working capital as % of net sales 19/20 20/21 21/22 8,451 204 8,504 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 378 75 0% 151 Assets -
Slide 21: Outlook – Q2 and mid-term
Outlook – Q2 and mid-term 21 Restricted Information and Basic Personal Data
Slide 22: Outlook in Q2
Outlook in Q2 • The overall market situation expected to continue to recover and the ability to install to improve • Continued higher supply-chain and logistics costs and longer lead times impacting margins and installation volumes • Risk for new waves of pandemic - especially in emerging markets •
Slide 23: Mid-term outlook until 24/25
Mid-term outlook until 24/25 Growth Margin Capital allocation >7% EBIT % >50% net sales expansion of annual net profit CAGR over period in dividend 23 Elekta’s outlook is based on an average 6-8% market growth during the mid-term period Restricted Information and Basic Personal Data
Slide 24: Summary Q1
Summary Q1 • Continued recovery in the market • Increased installation volume • Temporary headwinds to gross margin • Deepened strategic partnership with Philips • New direct Elekta market, Indonesia, and FDA clearance for Harmony 24 Restricted Information and Basic Personal Data
Slide 25: We build hope
We don’t just build technology We build hope 25 Restricted Information and Basic Personal Data
Slide 26: Q&A
Q&A 26 Restricted Information and Basic Personal Data
Slide 27: Restricted Information and Basic Personal Data
Restricted Information and Basic Personal Data