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Interim report May – July 2013/14

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  • Order bookings decreased 2* percent to SEK 2,027 M (2,252).
  • Net sales increased 21* percent to SEK 1,912 M (1,695).
  • EBITA amounted to SEK 148 M (131) before non-recurring items of SEK -34 M (-7). Operating result amounted to SEK 46 M (63).
  • Net income amounted to SEK -8 M (15). Earnings per share amounted to SEK -0.01 (0.03) before dilution and SEK -0.01 (0.03) after dilution.
  • Cash flow after continuous investments was SEK -584 M (-175).
  • Exchange rate movements compared to fiscal year 2012/13 are expected to have a negative impact of about 5 percentage points on EBITA growth (changed from about 3 percentage points).
  • The outlook in local currency is unchanged. In fiscal year 2013/14, net sales are expected to grow by more than 10 percent in local currency. The majority of the growth is expected to come from emerging markets. Investments in product development will increase by more than 20 percent during the year and EBITA is expected to grow by approximately 10 percent in local currency.

* Compared to last fiscal year based on constant exchange rates.

President and CEO comments

During the first quarter, demand in Elekta’s markets developed in line with expectations. Region Europe, the Middle East and Africa performed favorably and order bookings rose 18* percent. The increase was particularly strong in Eastern Europe and the Middle East. In Asia, we noted continued good growth, for instance in China and Japan. Order bookings rose 8* percent in the region. In North and South America, order bookings for the quarter declined, but this should be viewed in light of the very sharp increase noted in the corresponding quarter of the preceding year. The market fundamentals are unchanged and good in all our markets. In addition, we expect large orders to contribute to order bookings this year. However, no major order was booked in the first quarter.

Our new Versa HDTMlinear accelerator has been on the market for six months now and interest from our customers has exceeded expectations. A number of systems are already in clinical operation. Versa HDTMfeatures a unique combination of high dose rates, exceptional resolution, speed and low radiation leakage, all key elements for improving cancer care.

Deliveries in the first quarter were strong and net sales rose 21* percent. EBITA, before non-recurring items, amounted to SEK 148 M (131). The increase in earnings is mainly related to higher sales volumes. Exchange-rate effects had a substantial negative effect and amounted to about
SEK -65 M. The Japanese yen, US dollar and Australian dollar accounted for the majority of the negative effect.

Cash flow after continuous investments was SEK -584 M (-175) in the quarter. The cash flow was mainly affected by seasonal factors such as a high proportion of the annual tax payments and an increase in operational working capital. Following the seasonal pattern we expect a significantly stronger cash flow for the remainder of the year.

Elekta is the pioneer in modern cancer care and treatment of neurological disorders and, in order to further strengthen our leading position, we will continue to increase investments in research and development; this year by more than 20 percent. We have a comprehensive product development program in such areas as software solutions, brachytherapy and image-guided radiation therapy. We are looking forward to the ASTRO meeting at the end of September, where we plan to exhibit new products in the portfolio and also highlight our training and education initiatives. The project aimed at enabling treatment combined with advanced magnetic resonance imaging (MRI) is progressing well and, during the quarter, we announced a fifth member of the clinical development consortium, Froedtert & Medical College of Wisconsin Clinical Cancer Center.

Elekta sees considerable potential for continued growth, primarily through expansion in emerging markets, but also by improving our market position in established markets. Exchange rate movements compared to fiscal year 2012/13 are expected to have a negative impact of about five percentage points on EBITA growth.

The outlook in local currency is unchanged. In fiscal year 2013/14, net sales are expected to grow by more than 10 percent in local currency. Most of the growth is expected to come from emerging markets. Investments in product development will increase by more than 20 percent and EBITA is expected to grow by approximately 10 percent in local currency.

Tomas Puusepp,
President and CEO

* Compared to last fiscal year based on constant exchange rates.

Conference call
Elekta will host a telephone conference at 13:45 – 14:30 CET on September 3, with President and CEO Tomas Puusepp and CFO Håkan Bergström.
To take part in the conference call, please dial in about 5-10 minutes in advance and use the access code 935720.
Swedish dial-in number: +46 (0)8 5052 0110, UK dial-in number: +44 (0)20 7162 0077, US dial-in number: + 1 334 323 6201.
The telephone conference will also be broadcasted over the internet (listen only). Please use the link:
http://webeventservices.reg.meeting-stream.com/81070_elekta

Financial information                   
Interim report May – October 2013/14                                   December 4, 2013
Interim report May– January 2013/14                                     February 27, 2014
Year-end report May – April 2013/14                                     May 29, 2014

For further information, please contact:
Håkan Bergström, CFO, Elekta AB (publ)
+46 8 587 25 547, hakan.bergstrom@elekta.com

Johan Andersson, Director Investor Relations, Elekta AB (publ)
+46 8 587 25 415, johan.anderssonmelbi@elekta.com

Elekta AB (publ)
Corporate registration number 556170-4015
Kungstensgatan 18 ­­– Box 7593 – SE 103 93 Stockholm, Sweden

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 September 3, 2013.

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