Elekta Ab Class B · OMXSTO:EKTA_B

Elekta Ab Class B — Q4 FY2021/22 Earnings Presentation

27 slides from Elekta Ab Class B's earnings presentation, May 25, 2022

  1. Slide 1: Elekta

    G@Elekta

  2. Slide 2: Back to growth with a strong finish of the quarter

    Back to growth with a strong finish of the quarter Year-end and Q4 report 2021/22 Gustaf Salford, President and CEO Tobias Hägglöv, CFO May 25, 2022

  3. Slide 3: Agenda

    Agenda • Towards improved access to the best cancer care • Q4 and full-year financials • Outlook • Q&A

  4. 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

  5. Slide 5: Towards improved access to the best cancer care

    Towards improved access to the best cancer care

  6. Slide 6: Delivering our strategy – ACCESS 2025

    Delivering 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 & P

  7. Slide 7: Growing orders and revenue in the quarter and for the full year under challenging circumstances

    Growing orders and revenue in the quarter and for the full year under challenging circumstances Order and revenue growth, RTM 15% Focus areas Orders Revenue 10% FY Continue to mitigate Q4 covid and supply 2% 4%* chain disturbances 5% * 5% 4% Address inflation by 0% pricing and cost Q1 Q2 Q3 Q4 Q1 Q2

  8. Slide 8: Orders by regions: EMEA key growth driver both in Q4 and full year

    Orders by regions: EMEA key growth driver both in Q4 and full year Americas EMEA APAC -6% 16% -5% FY: -2% FY: 12% FY: 1% Tough US comps and challenging Strong growth in the Middle East Contracting Chinese market and economic impact in South America & Africa, Spanish tender driving weak Indian and Ea

  9. Slide 9: Comprehensive portfolio and accelerated innovations, gross R&D as % of sales to stabilize and reduce over time

    Comprehensive portfolio and accelerated innovations, gross R&D as % of sales to stabilize and reduce over time Comprehensive portfolio with recent launches Accelerated innovation to drive long term growth Gross R&D expenses as % of sales 15% 10% illustrative 5% 20/21 21/22 22/23 23/24 24/25 Oncology

  10. Slide 10: Launch of Elekta Esprit at ESTRO

    Launch of Elekta Esprit at ESTRO <1 minute per treatment plan with Lightning Superior visualization of Dedication in design brain anatomy with Leksell Vantage Designed solely for accurate and precise intracranial stereotactic 73% of clinical peer-reviewed radiosurgery (SRS) evidence Patients at the

  11. Slide 11: Momentum around Unity continues

    Momentum around Unity continues >70 clinical abstracts at ESTRO Ongoing clinical trials Comprehensive Motion Management Example abstracts (CMM) with automatic gating 1st non-invasive true • >40 different tumor sites 3D target tracking no severe toxicity recorded in MOMENTUM1 with nearly 1,800 treate

  12. Slide 12: Continued roll-out of Unity across the globe

    Continued roll-out of Unity across the globe EMEA Americas 25 installs APAC >120 16 installs 20 installs orders >60 installs1 1Installed or under installations. 12

  13. Slide 13: Q4 and full-year financials

    Q4 and full-year financials ©@Elekta

  14. Slide 14: Strong finish of Q4 and improved margins vs last quarter

    Strong finish of Q4 and improved margins vs last quarter Net sales increased by 5% y-o-y (SEK M) Q4 21/22 Q4 20/21 Q3 21/22 • Strong growth in Americas 11% and APAC 8% Net sales 4,239 3,667 3,602 • EMEA flat despite challenging market conditions Solutions 2,658 2,254 2,109 • Solution 6%, Service 4%

  15. Slide 15: Gross margin negatively impacted by inflation and mix

    Gross margin negatively impacted by inflation and mix Gross margin development Impact vs. LY Net sales growth +200 bps FX impact +60 bps -150 bps Higher component prices -300 and inflation bps Product mix and -110 Solution-Service mix bps Net sales growth based on constant exchange rates. 15

  16. Slide 16: More customer-related activities while administration costs declined

    More customer-related activities while administration costs declined Quarterly expenses Higher selling costs Expenses Q4 Q4 Growth1 Q3 Growth1 • Increased customer-related activities (SEK M) 21/22 20/21 Y/Y 21/22 Q/Q • Provision of SEK 18 M related to war in Ukraine Selling -380 -314 15% -342 11% Lo

  17. Slide 17: Accelerated focus on R&D – developing according to plan

    Accelerated focus on R&D – developing according to plan SEK M Rolling 12 months (RTM) R&D expenses as % of sales (RTM) 2,200 Gross R&D 15% 15% Gross R&D as % of net sales Gross R&D as % of net sales Net R&D as % of net sales 2,000 1,800 10% 10% 1,600 1,400 5% 5% 1,200 1,000 0% 0% Q4 Q1 Q2 Q3 Q4 Q1 Q

  18. Slide 18: Yearly revenue growth in a high-cost environment

    Yearly revenue growth in a high-cost environment Net sales increased by 4% (SEK M) FY 21/22 FY 20/21 • Americas 7%, EMEA 2%, APAC 4% Net sales 14,548 13,763 • Solutions 4%, Service 5% Solutions 8,652 8,175 Gross margin of 37.4% (-3.4 ppts) Service 5,896 5,588 • Inflation and higher costs for supply

  19. Slide 19: Net working capital ratio in line with seasonal pattern

    Net working capital (NWC) ratio in line with seasonal pattern NWC changes (SEK M) NWC as % of net sales 9,435 343 20/21 21/22 24 8,451 367 250 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Assets -3% -3% -2% OB Inventory Accounts Accrued Other CB -4% -4% -3% 21/22 receivable income 21/22 -6% -6% -7% 10,333 92 402 Liab

  20. Slide 20: Cash conversion continued on good level

    Cash conversion continued on good level Cash flow 21/22 (SEK M) Operational cash conversion, RTM 100% 3,000 82% 82% 77% 80% 71% 71% 69% 2,682 -813 61% 61% 2,000 -12 60% 1,858 -1,408 35% 40% 1,000 20% 0% 0 450 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20/21 21/22 EBITDA Taxes, Change in Cash flow Continuous Cash fl

  21. Slide 21: Proposed dividend for FY 21/22

    Proposed dividend for FY 21/22 Dividend, SEK per share Pay-out ratio 3.00 2.50 2.40 in two install- 79% 2.00 2.20 ments 1.50 1.80 1.80 1.40 1.00 of net income 0.50 0.00 17/18 18/19 19/20 20/21 21/22 Dividend policy of >50% Increased direct return enabled by a strong balance sheet 21

  22. Slide 22: Outlook – Q1 FY 22/23 and midterm

    Outlook – Q1 FY 22/23 and midterm

  23. Slide 23: Outlook Q1 FY 22/23

    Outlook Q1 FY 22/23 • Uncertain macro environment with continued supply chain challenges impacting installations, costs and margins • Long-term market trends to support growth and investment in high-end radiotherapy equipment and margin expansion 23

  24. Slide 24: Midterm outlook until 24/25

    Midterm outlook until 24/25 Growth Margin Capital allocation >7% EBIT % >50% net sales expansion of annual net profit CAGR over period in dividend Elekta’s outlook is based on an average 6-8% market growth during the mid-term period 24

  25. Slide 25: Summary Q4

    Summary Q4 • Strong finish of Q4 and improved margins vs Q3, although lower margin vs last year • Growing orders and revenue in the quarter. >120 Unity orders and >60 Unity installations • Delivering on ACCESS 2025 by new partnerships and well on track with targeted installed base in underserved mar

  26. Slide 26: We build hope

    We don’t just build technology We build hope

  27. Slide 27: Q&A

    © Q&A

Elekta — Q4 FY2021/22 Earnings Presentation on 6ix