Slide 1: Elekta - Year end report 2013/14
Elekta - Year end report 2013/14
Slide 2: Niklas Savander, President and CEO
Elekta - Year end report 2013/14 Niklas Savander President and CEO
Slide 3: Elekta - strong foundation earned
Elekta - strong foundation earned Plenty of structural growth opportunities ahead • Dedication to innovation, customers and patients • Industry leading innovation − Versa HDTM, MRI-guided radiation therapy • Global challenges in cancer care − Radiation therapy very well positioned 3
Slide 4: Comment on Q4 and fiscal year
Comment on Q4 and fiscal year Achievements Challenges • Delivered on revised guidance • Weak results in Russia, • Sales in Q4 best ever Latin America and India • Double digit order growth in • Working capital US, China, EMEA • Uneven distribution of sales in • Esteya and Monaco 5 launched the year •
Slide 5: Short-term measures
Short-term measures • Increased efficiency • Program to further streamline the organization; charge of 100 MSEK in Q4 • Improved working capital efficiency: targeted cash conversion of 70% • Strengthen emerging market teams 5
Slide 6: Håkan Bergström, Chief Financial Officer
Elekta - Year end report 2013/14 Håkan Bergström Chief Financial Officer
Slide 7: Strong Q4 performance
Strong Q4 performance Result in line with expectations • Net sales up 7%* in fiscal year − Strong growth in Europe − Recovery of Leksell Gamma Knife® in Q4 • EBITA growth of 3%** to SEK 2,183*** M • Order bookings up 5%* (14%*) in FY + Europe, China and North America ‒ Brazil, Russia and India • Cas
Slide 8: North and South America: Strong growth in US
North and South America Strong growth in US • Order bookings up 4%* in FY • North America − 9% order growth in US − Hospital consolidation continue to drive strategic partnerships built on comprehensive solutions − Good momentum on Versa HD™ − Leksell Gamma Knife® recovered in Q4. Full year: lower v
Slide 9: Europe, Middle East and Africa: Strong growth
Europe, Middle East and Africa Strong growth • Strong order bookings, up 19%* in FY and 13%* in Q4 • Established markets − Strong growth in Southern and Northern Europe − Versa HDTM gaining share • Emerging markets − Strong growth in Middle East − Large system wins in Iraq − Weak market in Russia 9
Slide 10: Asia Pacific: Mixed picture among markets
Asia Pacific Mixed picture among markets • Order bookings down 9%* in FY • Strong development in China − Double digit growth in flat market − PLA and NHFPC tender wins • Flat development in Japan − Currency effects from JPY • Weak development in South-East Asia, especially India 10 *Based on unchang
Slide 11: Strong deliveries in Q4
Strong deliveries in Q4 Result in line with expectations • Net sales increased 7%* in Q4 and 7%* YTD • Gross margin at 43% (46) − Currency − Lower volumes of Leksell Gamma Knife® • EBITA of SEK 2,183** M (2,297**) − R&D expenditures, before capitalization, increased to SEK 1,202 M (894) , due to MR
Slide 12: Working capital at 14% of net sales
Working capital at 14% of net sales Working Capital April 30, April 30, Change SEK M 2013 2014 • Net working capital ratio at Working capital assets year end:14% (11%) Accounts receivable 3 192 4 197 +1 005 − I higher inventory due to the lower- Accrued income 1 861 1 699 -162 than-planned shipments
Slide 13: Cash flow affected by continued R&D investments and higher working capital
Cash flow affected by continued R&D investments and higher working capital 12 months 12 months Cash flow May - April May - April • Cash flow from operating (SEK M) 2012/13 2013/14 activities SEK 1,275 M (1,870) Profit before tax 1 800 1 502 − Lower operating result Amortization & Depreciation 349 41
Slide 14: Volatile currency markets
Volatile currency markets Reported currency effect: FX exposure • EBITA: SEK -175 M. Q4: SEK -35 M SEK M Operating expenses − JPY, AUD, CAD, GBP, ZAR 4 500 Revenues 3 500 • Estimated currency effect for 2 500 2014/15 1 500 − Net sales: -1 percentage points − EBITA: -2 percentage points 500 -500 -1 5
Slide 15: Extra dividends proposed for second year
Extra dividends proposed for second year MSEK 800 CAGR • Ordinary dividend of 600 35% SEK 1.50 per share 400 • Extraordinary dividend of SEK 0.50 per share • Proposal for share 200 repurchase program 0 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 Dividend Extra dividend / repurchase 15
Slide 16: Opening backlog vs. revenue
Opening backlog vs. revenue MSEK Total Elekta • Elekta report net orders 12 000 − Historic cancellations 2-3% annually 10 000 8 000 • Increase ageing in order backlog 6 000 4 000 related to technical service 2 000 0 • Conservative in booking long-term FY12/13 Elekta opening backlog FY13/14 Elekta re
Slide 17: Niklas Savander, President and CEO
Elekta - Year end report 2013/14 Niklas Savander President and CEO
Slide 18: Guidance for 2014/15: Growth in line with last year, continued margin expansion
Guidance for 2014/15: Growth in line with last year, continued margin expansion Guidance 2014/15 Financial objective Net sales growth ~7-9%* >10%* Exceed sales growth EBITA growth 10% or more* in SEK 18 *Based on constant exchange rates
Slide 19: Capital Markets Day
Capital Markets Day June 17, 2014 Clarion Sign Hotel, Stockholm 19
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