Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Q3 2013/14 Earnings Presentation
18 slides from Elekta Ab Class B's earnings presentation, Feb 27, 2014
Slide 1: Elekta Q3 report 2013/14
Elekta Q3 report 2013/14 Tomas Puusepp, President and CEO Håkan Bergström, CFO 1
Slide 2: Strong order bookings – deliveries below expectations in Q3
Strong order bookings – deliveries below expectations in Q3 • Net sales up 1%* in Q3 and 7%* YTD EBITA YTD of SEK 895** (1,053**) M – Leksell Gamma Knife® – Weak currency affecting India and Brazil – Reported currency effect: -140 MSEK (-50 MSEK in Q3) • Order bookings up 15%* in Q3 – Strong growth
Slide 3: Leksell Gamma Knife
Leksell Gamma Knife® • Order cycle delayed – Higher share of new customers – longer order cycles – Temporary affected net sales in Q3 • Good prospects for Q4 – Good order pipeline in North America – Confident in the long term underlying market • Growing interest for stereotactic radiosurgery in the
Slide 4: Strong demand for new products
Strong demand for new products Versa HD™ - over 60%* of order intake Esteya® Monaco 5® *On applicable markets in Europe and North America 4
Slide 5: North and South America – strong growth in US
North and South America – strong growth in US • Order bookings up 40%* in Q3 and 8%* YTD • North America – Large orders and strategic partnerships built on comprehensive solutions – Good momentum on Versa HD™ 80 % of new orders in US – Low order intake and deliveries for Leksell Gamma Knife – but go
Slide 6: McLaren Health Care – a comprehensive partnership
McLaren Health Care – a comprehensive partnership • Comprehensive cancer care solution – Support and service partner to drive cancer care quality across the network – MOSAIQ® as a centralizing platform and interface in the entire network • Leading technology with patient in center – Versa HD™, Lekse
Slide 7: Europe, Middle East and Africa – strong growth
Europe, Middle East and Africa – strong growth • Strong order bookings, up by 15%* in Q3 and 22%* YTD • Established markets – Especially strong growth in South and Central Europe – Versa HDTM 40% of new orders – First patients treated with Esteya® • Emerging markets – Strong growth in Middle East an
Slide 8: Asia Pacific – mixed market
Asia Pacific – mixed market • Order bookings decreased 9%* in Q3 and 3%* YTD • Good development in China – PLA order received – Good prospects for the year • Elekta growth on flat market in Japan – Good development with the Toshiba collaboration – Low Leksell Gamma Knife® volumes • Versa HD approval
Slide 9: Weak deliveries in Q3 affecting EBITA
Weak deliveries in Q3 affecting EBITA • Order growth 15%* in Q3 • Net sales increased 1%* in Q3 and 7%* YTD – Lower volumes of Leksell Gamma Knife® – Weak currency affecting Brazil and India • Gross margin at 42% (45) – Currency – half of decline • EBITA of SEK 895** M (1,053**) – Currency effect SE
Slide 10: Strong cash flow expected in Q4
Strong cash flow expected in Q4 • Lower operating result 9 months 9 months Cash flow May - Jan May - Jan • Increased investments to support future (SEK M) 2012/13 2013/14 growth Profit before tax 690 438 – R&D, MR Linac project Amortization & Depreciation 259 310 – Training and education centers Int
Slide 11: Revenue recognition and Invoicing
Revenue recognition and Invoicing Revenue recognition Invoicing - Accrued income • Revenue recognized when risk and rewards • Revenue recognition often does not coincide with have been transferred to the customer invoicing and payments from customers • On average: 85% shipment, 15% acceptance • Invo
Slide 12: Linac order to sale cycle and invoicing linked to payment terms
Linac order to sale cycle and invoicing linked to payment terms Delivery & Order Shipment installation Acceptance 1-12 months 1-5 months 1-4 months Average payment terms Linked to down Time frame from payment and shipment: shipment 60% Linked to delivery 15% +3,5 months & installation Linked to cust
Slide 13: Customer - net working capital days
Customer - net working capital days Regional split: Days 90 North and South America: ~ -29 days Europe, Middle East & Africa: ~130 days 80 Asia Pacific: ~ 64 days 70 60 • Increased activities across all 50 regions on reducing lead-times 40 • Order to cash programs in place 30 Regional split: to impr
Slide 14: Working capital overview
Working capital overview Working Capital Apr 30, Jan 31, Jan 31, Change • Inventories build-up for SEK M 2013 2013 2014 planned deliveries in Q4 - Working capital assets increase in accounts Accounts receivable 3 192 2 810 3 241 +431 payable Accrued income 1 861 1 460 1 454 -6 Inventories 850 940 1
Slide 15: Volatile currency markets
Volatile currency markets Reported currency effect: FX exposure SEK M • Half of decline in gross margin 4 600 Operating expenses Revenues – Japanese YEN 3 600 2 600 • EBITA: SEK -140 M. Q3: SEK -50 M 1 600 • Estimated currency effect for 2013/14 600 – Net sales: -3 percentage points -400 – EBITA: -5
Slide 16: Strong fiscal year end expected
Strong fiscal year end expected • Revised outlook – Lower than expected volumes of Leksell Gamma Knife® – Volatile currencies affecting private care providers in Emerging Markets • For the fiscal year 2013/14, net sales is expected to grow by approximately 7%* • EBITA is expected to grow by approxim
Slide 17: Long-term strategy unchanged
Long-term strategy unchanged • Overall good market demand – Order bookings up 15%* in Q3 and 8%* YTD • Growing need for modern and affordable cancer care • Technology leadership – Versa HDTM, Monaco® 5, Esteya® • R&D investments for future growth *Based on unchanged exchange rates 17
Slide 18: Human Care Makes the Future Possible
Human Care Makes = the Future Possible