Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q2 2015/16 Earnings Presentation
16 slides from Elekta Ab Class B's earnings presentation, 2015
Slide 1: Elekta – Q2 report 2015/16
Elekta – Q2 report 2015/16 Tomas Puusepp President and CEO Håkan Bergström Chief Financial Officer 1
Slide 2: 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 3: Good performance - highlights
Good performance - highlights Order bookings increased by 3*% in Q2 Net sales grew 1*% during H1 Improved gross margin by 2.3 ppts to 40.8% EBITA increased 35**% Cash flow improved 80 MSEK Transformation program on track *Based on unchanged exchange rates 3 ** Before non-recurring items of SEK -48 M
Slide 4: Order bookings increased 3*% in Q2
Order bookings increased 3*% in Q2 Europe, Middle East and Africa • Continued growth in Western Europe, improvements in emerging markets • Amethyst Radiotherapy order signed in Q2 North and South America • Volatile development in the US with challenging comparison from last year • Good growth in Sou
Slide 5: Transformation program to drive margin improvement
Transformation program to drive margin improvement • Two-year plan for improved growth, profitability and cash flow • Activities launched • No. of employees reduced by 91 (end of Q2) TA R G E T TA R G E T TA R G E T 2-year cost reduction EBITA-margin Lowering net working program of improvement of ca
Slide 6: Transformation activities on track
Transformation activities on track › Continue to invest in strategic R&D › Strengthen customer service network including customer training and education › Reduce costs – primarily in administration, supply chain and procurement › Drive aftermarket growth and profitability 6
Slide 7: Strong product portfolio and R&D pipeline
Strong product portfolio and R&D pipeline Atlantic Game changer in radiation therapy - On track for launch and commercial orders from 2017 - Second system installed at MD Anderson Software Treatment planning - Outstanding precision - Improving the speed of calculation Leksell Gamma Knife® Icon™ Ultr
Slide 8: Our financial ambitions
Our financial ambitions Short-term Mid-term Long-term (2015/16) (2016/17 – 2017/18) • Growth in net sales to • 3-5%* net sales growth • >10%* net sales growth continue to be modest per year per year for FY 2015/16* • Improve EBITA margin with • Growth in EBITA to exceed • Improve EBITA margin more t
Slide 9: Elekta – Q2 report 2015/16
Elekta – Q2 report 2015/16 Håkan Bergström Chief Financial Officer 9
Slide 10: EBITA grew by 35*% in the first half
EBITA grew by 35*% in the first half • Favorable growth in services and aftermarket sales • Higher gross margin • Improved leverage on expenses** • Currency effects of SEK 30 M * Adjusted for non-recurring items of -48 (-2) MSEK 10 ** Excluding amortizations and based on constant exchange rates
Slide 11: FX Impact – weakening of SEK
FX Impact – weakening of SEK Currency Exposure Q2 Main currency rates FY15/16 vs. last year Currency effect YoY SEK M • Effect on revenue: +13% +570 13% 18% Q2 LY Q2 FY Change 4% • Effect on COGS: +12% -210 7% • Effect on Gross exp: +13% -270 13% EUR/SEK 9,15 9,36 +2% • Exchange differences -60 25%
Slide 12: Cash conversion from operating activities. Target >70% for full year
Cash conversion from operating activities. Target >70% for full year Cash conversion (%) 140% 126% 120% 117% 100% 81% 83% • Working capital ambition 76% 80% <10% of sales 60% 60% • Strong Q4 expected 40% 32% 20% 0% 12/13 13/14 14/15 Rolling 12-months Free cash flow / adjusted net profit Cash flow fr
Slide 13: R&D investments for future growth
R&D investments for future growth R&D expenses SEK M % of net sales 3 000 13,1% 14% 12,6% 11,2% 12% 2 500 8,9% 10% 2 000 8,6% 8,6% 8,8% 8,1% 6,9% 8% 6,7% 1 500 6% 1 000 4% • Investments and 500 2% capitalization of 0 0% development costs is 11/12 12/13 13/14 14/15 Rolling- 12 expected to decline for
Slide 14: Net working capital to be further improved
Net working capital to be further improved DSO* (Days) 6 000 120 • DSO* improved to 67 (84) days in first half 5 000 100 4 000 80 • North and South America - decrease in accounts 3 000 67 60 receivable and accrued income 2 000 40 1 000 20 • Europe, Middle East & Africa - decrease in accounts 0 0 rec
Slide 15: Order backlog
Order backlog Visibility of future revenue Order backlog maturity by year (bnSEK) 18,2 Q2 Order backlog: • SEK ~4.5 bn from backlog expected as revenue in H2 30% 30% • Significant currency effects 25% in changes of backlog 15% Opening FY15/16 FY16/17 FY17/18 FY18/19 Backlog H2 and later FY15/16 15 x
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