Elekta presents strategic agenda to outgrow the market
STOCKHOLM, June 17 – During a capital markets day in Stockholm today, Elekta President and CEO, Niklas Savander, underpinned the company’s ambition to return to growth levels above 10 percent. “The growth drivers behind radiation therapy are striking. Elekta is very well positioned to capture the potential,” he said.
He elaborated on the market opportunity for Elekta, particularly in emerging markets, which account for 35 percent of its business, and gave insight into a research-based market model that Elekta uses to calculate global growth levels.
Savander also outlined four strategic focus areas: Innovation Leadership, Commercial Transformation, Life Cycle Management and Grow the Pie. “Our Innovation Leadership will continue with increased attention to software and business model innovation. Commercial Transformation is about the capability of selling solutions as well as order-to-cash management. Life Cycle Management is about leveraging the installed base in order to optimally capture value. And Grow the Pie is about the potential for radiation therapy to take a bigger share in the cancer care continuum.
“These four focus areas are the core of Elekta’s strategic agenda, which will enable Elekta to continue its growth track record and leadership in radiation therapy and brain disorders,” he added.
“For this fiscal year net sales is expected to grow by 7-9 percent in local currency, including a weak first quarter,” he said, while stressing the importance for Elekta to continuously work to improve efficiency. Programs related to this were announced in the year-end report on May 28, including a restructuring program of SEK 100 million.
Elekta CFO, Håkan Bergström, restated the target of a strong growth with increased profitability. He explained how Elekta will continue to leverage on the fixed cost base. “We will focus our efforts on becoming more efficient in our commercial processes,” he said. “We target to reach net working capital of 10 percent of net sales within two years”. Bergström reiterated that cash conversion is targeted to return to around 70 percent for fiscal year 2014/15.
Presentations were also given by Jay Hoey, Executive Vice President North America; Gilbert Wai, Executive Vice President Asia Pacific; Ian Alexander, Executive Vice President Europe & Africa, Latin America, Middle East (AFLAME); and by Kevin Brown, Global Vice President Scientific Research.
- Strengthened market position in North America; consolidation benefits Elekta
- Strong drivers for long-term growth intact in Asia Pacific
- Continued success in China, the company’s second largest market, with over 50 percent market share
- Leader in established and emerging markets in Europe & AFLAME
- Clinical benefits of MRI-guided radiation therapy look promising; recent progress includes an expanding consortium
The capital markets day was held on June 17 in Stockholm. The presentations and video replay are available on www.elekta.com/ir.
*In local currency
# # #
For further information, please contact:
Johan Andersson, Director, Investor Relations, Elekta AB
Tel: +46 702 100 451, e-mail: email@example.com
Time zone: CET: Central European Time
Gert van Santen, Group Vice President Corporate Communications, Elekta AB
Tel: +31 653 561 242, e-mail: firstname.lastname@example.org
Time zone: CET: Central European Time
The above information is such that Elekta AB (publ) shall make public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 13:00 CET on June 17, 2014.
Elekta is a human care company pioneering significant innovations and clinical solutions for treating cancer and brain disorders. The company develops sophisticated, state-of-the-art tools and treatment planning systems for radiation therapy, radiosurgery and brachytherapy, as well as workflow enhancing software systems across the spectrum of cancer care. Stretching the boundaries of science and technology, providing intelligent and resource-efficient solutions that offer confidence to both health care providers and patients, Elekta aims to improve, prolong and even save patient lives.
Today, Elekta solutions in oncology and neurosurgery are used in over 6,000 hospitals worldwide. Elekta employs around 3,500 employees globally. The corporate headquarters is located in Stockholm, Sweden, and the company is listed on the Nordic Exchange under the ticker STO:EKTAB. Website: www.elekta.com.