Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q3 2020/21 Earnings Presentation
27 slides from Elekta Ab Class B's earnings presentation, Feb 25, 2021
Slide 1: Momentum and growth
Momentum and growth Q3 report 2020/21 Gustaf Salford, President and CEO Johan Adebäck, CFO Feb 25, 2021
Slide 2: Agenda
Agenda • Precision Radiation Medicine in Q3 Photo • Q3 financials • Outlook • Q&A 22
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: Precision Radiation Medicine in Q3
Precision Radiation Medicine in Q3 4
Slide 5: Helping clinicians improve patients’ lives
Helping clinicians improve patients’ lives We are Precision. Radiation. Medicine. Resilience & digitalization Improve market access Accelerate innovation Drive service growth Build strong partnerships
Slide 6: Highlights since last report
Highlights since last report Helping clinicians Performing in challenging improve patients’ lives market conditions Strong start for Best in KLAS Clinical clearance Installation Strong cash flow Harmony awards for Versa for Unity in volumes back to and cash HD and MOSAIQ South Korea normal levels co
Slide 7: Orders and revenue recovered, returning to growth
Orders and revenue recovered, returning to growth Order development Revenue development Installed base 5% 2 % 7 % 38% Solutions 62% in Q3 20/21 in Q3 20/21 Service Q3 19/20 Q3 20/21 7 Order and revenue development based on constant currency.
Slide 8: Strong order recovery in North America and China
Strong order recovery in North America and China North & Europe, Middle Asia South America East & Africa Pacific 41% -17% 8% 9M:29% 9M:-9% 9M:-6% • Temple/Fox Chase linacs • Region Lazio/Italy several VersaHD • Linacs and Unity to Beijing CAMS Hospital • LGK to Temple/Fox Chase • Linac and LKG to Ca
Slide 9: Accelerating innovation along three main themes
Accelerating innovation along three main themes 1 Linac family 2 Unity platform 3 Software solutions across portfolio 9
Slide 10: Strong start for Harmony
Strong start for Harmony Order booked 1st installation planned March 2021 Regulatory clearance CE-Mark FDA approval NMPA approval Onging Estimated process start of 2022 10
Slide 11: Powerful infrastructure for the evidence development journey of Unity
Powerful infrastructure for the evidence development journey of Unity >500 ~1,400 >50 consortium sites clinical abstracts patients accrued >300 >150,000 >600 researchers peer-reviewed articles 8 consortium sites images accrued First high-level evidence studies1 Prostate leveraging this infrastructur
Slide 12: Steady progress in clinical evidence journey
Steady progress in clinical evidence journey Cancer type: Oligometastases (Pelvis)1 Cancer type: Liver metastases3 Fraction: 1 (dose: 20 Gy) Fraction: 3-5 (dose: 6 Gy) Superior visualization and online Markerless visualization of liver Outcome: plan adaptation may allow ultra- Outcome metastasis hyp
Slide 13: MOSAIQ 3 – launched Feb 24
MOSAIQ 3 – launched Feb 24 Streamlining the day Smarter & faster decisions Enhanced medical oncology workflow Elevate patient care Protocol-driven automation Increase organizational impact Enhanced efficiency, accuracy, consistency and performance 13 MOSAIQ 3 has CE mark and 510(k) clearance. Not av
Slide 14: Solid service platform through digitilisation and innovation
Solid service platform through digitilisation and innovation Service revenue and the installed base Excelled service digitalization Future expectations MSEK • Customer satisfaction all time high More automation Devices and digitalization 8 000 8 000 • Logistic platform taking predictive focusing on
Slide 15: Improve access to radiotherapy and Precision Radiation Medicine
Improve access to radiotherapy and Precision Radiation Medicine – our key strategic and sustainability priority Expand the role of Access to Healthcare 1 Precision Radiation Medicine by market adoption of new innovations Access to RT Strengthening our geographic presence Precision. 2 in markets with
Slide 16: Q3 financials
Q3 financials @eElekta
Slide 17: Strong Q3 solution business turned 9M revenue to growth
Strong Q3 solution business turned 9M revenue to growth Net sales & EBITA margin rolling 12 months MSEK % 9M Q3 16 000 21 20 Total net sales Total net sales 12 000 2% 7% 19 18 Solution Service Solution Service 8 000 17 0% 5% 9% 3% 4 000 16 EBITA margin EBITA margin 15 19.5% 18.5% 0 14 Q3 Q4 Q1 Q2 Q3
Slide 18: Strong revenue growth, margins impacted by higher supply chain costs, solution/service mix and FX
Strong revenue growth, margins impacted by higher supply chain costs, solution/service mix and FX (SEK M) Q3 20/21 Q3 19/20 ∆ Net sales up 7% Net sales 3,581 3,656 7% • North and South America: 7% Solutions 2,234 2,216 9% • Europe, Middle East and Africa: -7% Service 1,347 1,440 3% COGS -2,194 -2,12
Slide 19: The resilience activities is a three-phased response to a permanently changing world
The resilience activities is a three-phased response to a permanently changing world Focus on new normal Digitalization and long term Cost reduction efficiency improvements Travel costs Free up resources for… Immediate crisis response Q4-Q2 >60% Long-term Speed-up of savings YTD (vs 19/20) Build for
Slide 20: Expenses reduced with -5% year over year
Expenses reduced with -5% year over year Expenses Q3 Gross R&D expenses, RTM Expenses Q3 Q3 Growth1) MSEK (SEK M) 2020/21 2019/20 Y/Y 1 600 11% Selling -279 -339 -10% 1 400 Administrative -255 -282 -4% 10% 1 200 R&D (Net) -378 -415 -1% 1 000 9% Total -912 1,036 -5% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19/20 2
Slide 21: EBITA driven by reduced spend and positive FX impact
EBITA driven by reduced spend and positive FX impact 9M EBITA bridge (MSEK) 15.4% 19.5% -30 -27 215 49 • Negative volume effect due 1,967 355 to Covid and currency -208 impact 1,635 -23 20% • Positive effect from lower sales and admin expenses growth • FX rate differences had a positive EBITA impact
Slide 22: Strong cash flow and cash conversion
Strong cash flow and cash conversion 9M Cash flow, SEK M Cash conversion, RTM 100% 3 000 82% 265 80% 61% 61% 61% 2 000 556 2,257 60% 51% 50% 47% 45% 40% 35% 550 1 000 1,436 20% 886 0% 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19/20 20/21 EBITDA Other Change in Cash Flow Continuous Cash flow Operational cash conv
Slide 23: Outlook
Outlook @eElekta
Slide 24: Outlook in Q4
Outlook in Q4 • Pandemic to continue to impact and disrupt cancer care globally - uncertainty for orders and risk of delayed installations • Continue accelerate investments in innovation • Long-term trends support growth and investment in high-end radiotherapy equipment 24
Slide 25: Summary
Summary • Performing in challenging market conditions - both orders and revenue returned to growth and cash flow improved • Margins impacted by higher supply chain costs, solutions/service mix and FX • Strong start for Harmony - great customer interest globally • Successfully driving the second phas
Slide 26: Welcome to Elekta’s Capital Markets Day June, 2021
Welcome to Elekta’s Capital Markets Day 7 June, 2021 26
Slide 27: Q&A
Q&A