Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Investor Day (2023)
84 slides from Elekta Ab Class B's investor day presentation, 2023
Slide 1: Capital Markets Day 2023
DID number here Capital Markets Day 2023
Slide 2: Elekta Capital Markets Day 2023 Speakers
Elekta Capital Markets Day 2023 Speakers 1• Introduction 2• Market development update 3• Financials Gustaf Salford Tobias Hägglöv Maurits Wolleswinkel CEO CFO President, Linac & Software solutions 4• Accelerate innovation 5• Driving partner integration Break Hilma Nordquist Sustainability Director H
Slide 3: ACCESS 2025 Strategy
ACCESS 2025 Strategy Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resilience and Process Excelle
Slide 4: Strategy execution well under way to drive strong shareholder value
Strategy execution well under way to drive strong shareholder value second half of ACCESS 2025 FY 23/24 & 24/25 KEY TARGETS Second half of FY 21/22 & 22/23 ACCESS 2025 ACHIEVED MILESTONES First half of ➢ Back to strong revenue growth and margin expansion ACCESS 2025 ➢ Continued Product launches to a
Slide 5: Market development update
Market development update @Elekta
Slide 6: Cancer remains the fastest growing cause of death globally
Cancer remains the fastest growing cause of death globally, predicted to increase by nearly 1/3 this decade Mortality by cause 2020, Mn Cardiovascular diseases 19 2020 2030 Cancers 10 +30% ~13 Mn deaths in 2030 Respiratory diseases 4 Digestive diseases 3 Lower respiratory infections 3 Neonatal disor
Slide 7: Improvements in cancer care significantly increase survival rates
However, improvements in cancer care significantly increase survival rates – we must progress on dual fronts Average five-year survival rates by cancer type, United States 1970-77 2010-16 All cancers Thyroid Prostate Skin Improve Breast (female) operational efficiency Corpus Uteri Bladder Kidney Non
Slide 8: Elekta drives progress across three key trends to improve cancer care
Elekta drives progress across three key trends to improve cancer care, in collaboration with customers and partners Oncology trends What care systems need Elekta’s offering Health systems need to Leading radiotherapy Intelligent workflows keep demonstrating technology provider, value of care & perso
Slide 9: Market leading positions in all segments, installed base of 7,000 devices
Elekta has market leading positions in all our segments, and an installed base of more than 7 000 devices Comprehensive Oncology Radiotherapy treatment solutions and Services Oncology Care Solutions Informatics Linacs Neuro Brachy Oncology Oncology informatics ~5 300 external ~1 900 brachy- beam dev
Slide 10: Strong service business, 40% of total revenue
Elekta has a strong service business, 40% of total revenue, outgrowing installed based growth Net sales by product type Installed base (external beam) and Service revenue (R12M) % of total Elekta sales Service Revenue Installed Base # of Devices Revenue (MSEK) Service Solutions 7,000 7,000 6,000 6,0
Slide 11: Global presence with diversified geographic mix
Elekta has a global presence with a diversfied geographic mix and strong growth drivers across regions Elekta is headquartered in Stockholm, Sweden, with offices in more than 120 countries and listed on Nasdaq Stockholm = regional hubs Americas EMEA APAC 31% 35% 34% of sales of sales of sales • US a
Slide 12: Elekta is well positioned in a market coming back to healthy growth
Elekta is well positioned in a market coming back to healthy growth Elekta revenue growth, by quarter R121 Market growth outlook (USD, revenue growth1 in %) FY23/24-24/25 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24-24/25 Market revenue growth and drivers 20% 15% 6-8% CAGR globally 10% 8-10% 7-9% 5%
Slide 13: Financials
A & mz) c © — Le @Elekta
Slide 14: Continuing momentum from H2 22/23
We are continuing our momentum from H2 22/23 Net sales Adj. EBIT (MSEK) X% Y-o-Y revenue growth X% 22/23 EBIT margin (21/22 EBIT margin) margin 3% -5% 8% 10% 6000 25% 5125 5000 4337 20% 4081 4239 4000 3697 3602 16.2% 3327 15% 3009 (13.4%) 3000 10.7% 10% 2000 (9.4%) 7.7% (14.4%) 5% 1000 4.0% (6.7%) 0
Slide 15: Outlook from 2022/23 until 2024/25
Outlook from 2022/23 until 2024/25 – focus on driving shareholder value Growth Margin Capital allocation FY 24/25 >7% Expansion >50% guidance net sales of EBIT % of annual net profit CAGR over period in dividend Focus on driving shareholder value
Slide 16: Net sales growth expected to reach >7% CAGR by 24/25
FY 24/25 guidance: Net sales growth in line with market last two years, Growth Margin Capital expected to reach >7% CAGR by 24/25 Net sales (MSEK, YoY-% in constant exchange rates) Growth drivers Est. realization time >7% 22/23 23/24 24/25 4% CAGR 2-year Accelerate 6% CAGR backlog • Utilization of s
Slide 17: Strong backlog enables healthy revenue growth
FY 24/25 guidance: Strong backlog enables healthy revenue growth Growth Margin Capital onwards Total backlog (BSEK) 43 Bn Strong backlog from Avg book-to-bill1 high book-to-bill ratio past 3 years >1.2 ratio over L3Y Solid share of backlog expected to be recognized in FY 23/24 35% of backlog FY 22/2
Slide 18: We will expand EBIT margin until 24/25
FY 24/25 guidance: We will expand EBIT margin until 24/25 Growth Margin Capital FY 22/23 Key components until FY 24/25 Net sales (MSEK) 16,869 Revenue • Volume growth & gradual price increase realization COGS - 62% Gross margin • Improved gross margin from revenue growth, COGS reduction & Gross marg
Slide 19: Improved gross margin from revenue growth and cost efficiencies
FY 24/25 guidance: Improved gross margin from revenue growth and Growth Margin Capital cost efficiencies 38% + Volume growth contribution + Gradual price increases + Ease of supply chain & lower logistics cost + Cost-reduction Initiative followed by COGS reductions Gross margin – Salary, Material &
Slide 20: Continued SG&A productivity improvement
FY 24/25 guidance: Continued SG&A productivity improvement Growth Margin Capital 17% + Revenue growth + Cost-reduction Initiative run-rate effect Admin + Improved productivity by centralization, digitalization and process efficiencies Selling – Salary inflation Revenue SG&A% SG&A% 22/23 24/25
Slide 21: Continued selected investments in innovations
FY 24/25 guidance: Continued selected investments in innovations to Growth Margin Capital secure future offering while maintaining cost control R&D expenses Net R&D as % of sales Gross R&D as % of sales Gross R&D expenses (BSEK) Innovations since CMD 20/21 13% 11% 11% ➢ Elekta Esprit 10% 8% ➢ CMM ➢
Slide 22: EBIT margin expansion driven by sales, productivity and FX
FY 24/25 guidance: EBIT margin expansion driven by higher sales, Growth Margin Capital improved productivity and FX Expansion EBIT% drivers Est. realization time 22/23 23/24 24/25 Volume ++ Strong growth driven by backlog 10% conversion and market recovery Price / Mix ++ Gradual price increases -– R
Slide 23: Continued focus on cash flow and working capital
FY 24/25 guidance: Continued focus on cash flow and working capital Growth Margin Capital Net working capital as % of net sales Operational cash conversion % (Cash flow in MSEK) 200% 6,000 4-year average 150% 65% 100% 76% 4,000 Target 70% 50% -6% -6% 0% 2,000 -7% -8% -50% -100% 0 FY 19/20 FY 20/21 F
Slide 24: Capital allocation going forward
FY 24/25 guidance: Capital allocation going forward Growth Margin Capital Selective Geographic Dividends acquisitions/ expansion investments At least 50% Expanding our portfolio Increased footprint in of net income and offering emerging markets
Slide 25: Utilizing current momentum to drive shareholder value
We are utilizing current momentum to drive shareholder value Product launches to accelerate order growth Utilize demand increase and accelerate backlog conversion to drive revenue growth Focus on Margin expansion driven by volume contribution, price driving increases and cost productivity shareholde
Slide 26: ACCESS 2025 Strategy
ACCESS 2025 Strategy Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resilience and Process Excelle
Slide 27: Several new innovations launched since last CMD
Several new innovations launched since last CMD across our whole product porftfolio Linacs Neuro Brachy Software ➢ Comprehensive Motion ➢ Esprit launched, offering ➢ Elekta studio bringing ➢ Elekta ONE revamping our Management (CMM) market leading SRS optimized imaging and software eco-system to int
Slide 28: Elekta ONE launched at ESTRO
Elekta ONE launched at ESTRO NEW Workflow NEW Treatment ➢ Unified software management applications environment Non-Elekta device EHR/pathway ➢ Evolving ecosystem, no MOSAIQ® interoperability interoperability loss of functionality NEW Integrated Console NEW Real-world ➢ Strengthened commitment (Elekt
Slide 29: Our innovation agenda reiterated
Our innovation agenda reiterated: Driving more personalization, with less effort, enabled by software and informatics Across Elekta’s portfolio, three focus areas steer our innovation agenda Personalized Elevated 1 precision productivity 2 Towards routine personalization of every Software | Services
Slide 30: Towards more personalized treatment at lower cost
Towards more personalized treatment at lower cost From 8 weeks to 1 week treatment – benefits patient and clinicians Planning Treatment Delivery Review and outcome assessment Blocks of treatment fractions ~8 weeks Conventional IGRT treatment ~2-4 weeks Hypofractionated adaptive treatment ~1 week MR-
Slide 31: Towards routine personalization of every treatment
Personalized 1 precision 1 Towards routine personalization of every treatment with CMM, online adaptive and patient reported outcomes Comprehensive Motion Management Adaptive Adaptive Adaptive Adaptive MR-Linac CT-Linac Gamma Knife Brachy Adapt to shape CMM Adapt to motion World leading portfolio of
Slide 32: Bringing Adaptive to the CT-Linac
Personalized 1 precision 1 We are bringing ’Adaptive’ to the CT-Linac to improve outcomes Further workflow improvements Online adaptive CBCT image quality Major release System update System update System update Adaptive Product upgrade Product upgrade Product upgrade CT-Linac Step-wise implementatio
Slide 33: Towards 50% cost reduction per treatment from automation
Elevated 2 productivity 2 Towards 50% cost reduction per treatment from automation in workflow, planning and delivery ONE | smart view ONE | smart flow ONE | auto planning ➢ Mobile and modern ➢ Protocol based workflow ➢ Intuitive, robust and interface to oncology with integrated user automated decis
Slide 34: Towards integrated decision support and data driven care
Integrated 3 informatics 3 Towards integrated decision support and data driven care management from real-world outcomes portfolio Better care decisions from data insights generated across portfolio of real-world outcomes ONE | plan ONE | analytics analytics ONE | registry ONE | patient informatics c
Slide 35: AI is expected to transform radiotherapy
Integrated 3 informatics 3 AI is expected to transform radiotherapy in the coming years – Elekta examples From Structures to Real-time Motion Apply Generative AI on Target contouring Management on CT-linac most complex challenges ➢ Enabled by AI driven image ➢ Breakthrough AI technology for ➢ Correc
Slide 36: Compelling business case leads our innovation focus
Compelling business case leads our innovation focus Software: Revamped commercial engine Delivery Solutions: Life-cycle mgmt. Further workflow improvements Online adaptive CBCT image quality Major release Upselling higher recurring value per customer Shorter time-to-value and – increasing software s
Slide 37: ACCESS 2025 Strategy
ACCESS 2025 Strategy Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resilience and Process Excelle
Slide 38: Sustainability at Elekta
Sustainability at Elekta: What we do matters, but how we do it matters more than ever Environment Governance • Emission reduction targets validated by Science Based S • Robust compliance program in place Targets Initiative (SBTi) • Compliance controls included in • Using innovation to minimize proce
Slide 39: Value chain emissions come from product use and supply chain
The majority of Elekta’s value chain emissions come from the use of our products and from our supply chain Input materials and logistics Use of sold products Elekta operations Other … 42% 1% 55% 2% Elekta value chain emissions FY21/22: Total baseline 738k tons CO2e. During SBTi validation, the 21 22
Slide 40: Emissions targets validated by SBTi
Taking action: Elekta’s emissions targets have been validated by the Science Based Targets initiative (SBTi) Input materials and logistics Use of sold products Elekta operations Other … 42% 1% 55% 2% TARGETS SCIENCE BASED Supplier engagement to Reduce emissions Transition to 100% Reduce product prom
Slide 41: More environmentally efficient ways to treat cancer
Through innovation, Elekta creates more environmentally efficient ways to treat cancer Example levers to drive down product emissions Product emissions per Reduce electricity Renewable electricity treatment course: consumption at customer sites Reduce packaging Emissions from the Reduce SF6 use and
Slide 42: ACCESS 2025 Strategy
ACCESS 2025 Strategy Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resilience and Process Excelle
Slide 43: Elekta's partnerships create opportunities and increase market reach
Elekta's partnerships create opportunities for our customers and increase market reach Our imaging partners lead the imaging market Elekta strategic partners Others Our partners enable us to: ~25% ~35% • Allow for personalized choice Global through seamless interoperability Global CT & MR CT-sim & M
Slide 44: Largest stand-alone radiotherapy company with strong partnerships
Elekta is the largest stand-alone radiotherapy company, with strong parterships across the patient care journey Interoperability / partnerships core offering Patient Assess & Screen Diagnose Plan Treat journey follow up Simulate Lab / radiology department Radiotherapy department Ecosystem • Partner
Slide 45: ACCESS 2025 Strategy
ACCESS 2025 Strategy Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resilience and Process Excelle
Slide 46: Unity MR-Linac
Unity MR-Linac @Elekta
Slide 47: 18th MR-Linac Consortium Meeting
The 18th MR-Linac Consortium Meeting highlights the power of Elekta Unity Consortium details ➢ 600+ physicians, physicists and radiographers (>300 in person) ➢ 65 cancer centers from 26 different countries ➢ 100+ scientific abstracts
Slide 48: Three winning abstracts showcase Unity progress
Three “winning” abstracts showcase the progress towards Unity as a new standard of care Sim-less Prostate SBRT for faster throughput 1 in the clinic 2 Visualizing radiation sensitivity of tumor 3 sub-volumes for personalized RT
Slide 49: Next-generation radiotherapy
The Royal Marsden Next-generation radiotherapy Dr Alison Tree Consultant Clinical Oncologist, Royal Marsden Hospital and the Institute of Cancer Research
Slide 50: How has radiotherapy changed over the last decade?
The Royal Marsden How has radiotherapy changed over the last decade? Improving the lives of our patients
Slide 51: Research in prostate cancer over the last 15 years
The Royal Marsden Research in prostate cancer over the last 15 years 2000 late 2000s 2016 By end 2023? 7.5 weeks of 4 weeks of 6.5 weeks of 5 days of daily daily daily treatment Better treatment treatment treatment (PACE trial) (RT01 trial) (CHHiP trial) technology cures more 60% cancer 71% cancer 9
Slide 52: Simulation (preparation) for radiotherapy
The Royal Marsden Simulation (preparation) for radiotherapy 3-6 Weeks Planning Manual Current Decision to Scan Manual Quality Treatment Contour Starts Pathway Treat Dose Plan Assurance CT +/- MRI Anatomy
Slide 53: Potential 1 hour pathway
The Royal Marsden 3-6 Weeks Planning Scan Manual Current Decision Manual Quality Treatment Contour Pathway to Treat CT +/- Dose Plan Assurance Starts Anatomy MRI Current Potential Radiographer 40 minutes 4 minutes Medic 30-60 minutes 15 minutes Physicist/ Dosimetrist 240 minutes 10 minutes Simulatio
Slide 54: Without a Unity, what is the best we can do?
The Royal Marsden Without a Unity, what is the best we can do?
Slide 55: Four key advantages to Elekta Unity: No gold seeds
The Royal Marsden Four key advantages to Elekta Unity: 1. No gold seeds
Slide 56: Four key advantages to Elekta Unity: Image guidance accuracy
The Royal Marsden Four key advantages to Elekta Unity: 2. Image guidance accuracy – Better soft tissue resolution – CT of patient 2 and Unity image of patient 2
Slide 57: Four key advantages to Elekta Unity: Monitor while you treat
The Royal Marsden Four key advantages to Elekta Unity: 3. Monitor while you treat – What we can currently see when we turn the beam on
Slide 58: Four key advantages to Elekta Unity: Change the dose
The Royal Marsden Four key advantages to Elekta Unity: 4. Change the dose whenever the anatomy changes Prostate Prostate Very large rectum Small with gas in rectum
Slide 59: Variable anatomy
The Royal Marsden Variable anatomy Verification MRI shown here from first 10 fractions MR-Linac therapy increased dose to tumour by 6-10%, with no change in healthy tissue doses.
Slide 60: Unity has helped us understand radiotherapy better
The Royal Marsden Unity has helped us understand radiotherapy better Bladder Bladder 21% increase in volume Prostate Prostate 1st day of 5th day of treatment treatment 82 cm3 111 cm3
Slide 61: Fundamental change in how we deliver radiotherapy – no margins
The Royal Marsden Allow FUNDAMENTAL change in how we deliver radiotherapy – no margins We need “margins” because: • The prostate can swell • The prostate can move • The patient could wriggle Bowel • The cancer can change
Slide 62: Where does the Unity enable us to go in prostate cancer?
The Royal Marsden Where does the Unity enable us to go in prostate cancer? 2010 2016 now Radiotherapy Radiotherapy Radiotherapy How low can over 7.5 weeks over 4 weeks over 5 days we go? (74 Gy) (60 Gy)
Slide 63: The Royal Marsden
The Royal Marsden
Slide 64: HERMES clinical study
The Royal Marsden HERMES clinical study Royal Marsden 5 Unity treatments 2 Unity treatments
Slide 65: If you only get two chances to get it right, which machine?
The Royal Marsden If you only get two chances to get it right, which machine do you want your treatment on? • Sub-optimal targeting on a CT-based radiotherapy machine • Needs gold seeds inserted • Needs bigger margins for error so more healthy tissue irradiated • No way of accounting for swelling
Slide 66: It's not just about prostate cancer
The Royal Marsden It’s not just about prostate cancer Images courtesy of Dr Jay Detsky Toronto, Canada
Slide 67: Opens up new possibilities – biological imaging
The Royal Marsden Opens up new possibilities – biological imaging
Slide 68: Next paradigm shift… putting the dose where it matters
The Royal Marsden Next paradigm shift… putting the dose where it really matters Images courtesy of Thijs Dassen, NKI
Slide 69: Imagine the perfect system for curing cancer with radiotherapy
The Royal Marsden Imagine the perfect system for curing cancer with radiotherapy Unity simulation- • Start radiotherapy free radiotherapy immediately – no waiting • See cancer clearly before Unity diagnostic quality MRI images and during treatment • Change plan as often as the Adaptive radiotherapy
Slide 70: Thank you
The Royal Marsden Thank you CHANGE WILL NOT COME IF WE WAIT FOR SOME OTHER PERSON OR SOME OTHER TIME WE ARE THE ONES WE’VE BEEN WAITING FOR WE ARE THE CHANGE THAT WE SEEK BARACK OBAMA
Slide 71: Availability of Care
Availability of Care G@Elekta
Slide 72: Elekta has delivered on promise to develop patient access
Elekta has delivered on our promise to develop patient access in underserved markets Our promise from last CMD … … realized around the globe Improving patient access through: • Smart market coverage and local presence • Develop human capital • Partnering with Ministries of Health • Partnering with p
Slide 73: Highest cancer incidence growth markets have largest radiotherapy demand
Markets with highest cancer incidence growth also have largest demand for radiotherapy Large opportunity to close the availability gap with greenfield installations in emerging markets Cancer incidence growth (2020-2040) RT systems per million population Africa 89% Africa 1 5 Asia (excl. China) 68%
Slide 74: Underserved markets allow growth in most profitable areas
The potential of the underserved markets will allow for growth in our most profitable areas Software and Service make ... and will continue to grow because up ~40 % of revenue... of the following drivers Accelerate our local market presence SW & SERVICE - Driving Elekta’s full offering (incl. Servic
Slide 75: ACCESS 2025 Strategy
ACCESS 2025 Strategy Drive partner integration Accelerate innovation with A world across the cancer care eco- customer utilization in mind where everyone system has access to the best Be the customer lifetime cancer care Drive adoption across the companion globe People Resilience and Process Excelle
Slide 76: SaaS and Elekta ONE
SaaS and Elekta ONE @Elekta
Slide 77: Elekta ONE: from first SaaS order to 15% of OIS orders
From first SaaS order to 15% of OIS software orders in two years laid foundation for launch of… Elekta ONE Elekta ONE primarily to be offered in the software subscription model
Slide 78: Elekta ONE offers a strong SaaS commercial model
Elekta ONE offers a strong SaaS commercial model Elekta ONE: Customer benefits ONE platform with all the solutions • Software packages with tiered functionality • Support the open software ecosystem • Streamlined workflow Allows clinicians to focus on treating patients • Clear pricing • Single Servi
Slide 79: Increased SaaS focus brings commercial benefits and savings
Elekta’s increased SaaS focus brings commercial benefits, increased efficiencies, and cost savings Elekta ONE: Business implications Long-term stable revenue and margin expansion • Increased value and revenue per customer – 80% revenue increase per customer converting to SaaS • Increased customer re
Slide 80: Customer traction validating the vision behind Elekta ONE
Customer traction in both mature and growth markets is validating the vision behind Elekta ONE Four clear steps to get us moving Dr. Shantanu Dhar HealthCare Global Enterprises Bengaluru, Karnataka, India “Elekta’s software solution is a one stop 200,000+ patients treated per year shop for our clini
Slide 81: US Market
US Market @Elekta
Slide 82: Elekta solves US customers' productivity challenges
Elekta solves US customers’ productivity challenges and creates a competitive edge in the market Current market dynamics in the US Elekta Care 360 SaaS >50% health systems reporting decreased financial performance1 Investments in productivity 5x spend on contract labor due to workforce shortages2 Di
Slide 83: Three key areas to drive market share growth
Going forward, we see three keys areas to drive market share growth Improved customer Delivering productivity improvements via software, new- productivity standard-of-care RT technologies, service, and education Market adoption MR Linac, Adaptive CT- Differentiated advanced therapies Linac, Brachy p
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