Elekta Full-year report 2014/15

Transcription

1 Elekta Full-year report 2014/15 Tomas Puusepp President and CEO Håkan Bergström Chief Financial Officer 1

2 Performance Results significantly below expectations and guidance Action program initiated to return to growth, improve profitability, reduce costs and continue to focus on cash flow Weak order performance in US Fewer large orders than anticipated Net sales +1% in SEK, -8%* in local currency EBITA decreased to SEK 1,472** (2,183)*** M Cash flow after continuous investments improved to SEK 867 M (494) 2 *Based on unchanged exchange rates ** Before non-recurring items and adjusted for bad debt losses of SEK 166 M ** Before non-recurring items

3 Prioritized areas for efficiency improvement Short-term turnaround of sales organization Drive sales with service and software to installed base Align product development and offering Savings in COGS and SG&A Prioritization within R&D Commercial Ian Alexander, CCO President & CEO Tomas Puusepp Solutions Johan Sedihn, COO Finance & Governance Håkan Bergström, CFO New functional organization to drive change 3

4 Market development North America replacement market. Hospital consolidation drives large and complex orders with long sales process Western Europe stable and growing in line with GDP Emerging Markets increased risk in some markets due to political development, war and civil unrest Asia Pacific continued good growth in China. Stable in Japan. Volatile in India and Far East Asia Good growth opportunities within service and software Currently market is growing at low to mid-single digit 4

5 Regional performance Order bookings -3% in SEK, Gross order 8%*in local currencies US: large orders did not close as anticipated loss of market share Europe: Western Europe robust. Weak in Middle East and North Africa. Good growth in Russia and Sub-Sahara Africa Asia Pacific: 23%* growth in Q4. Strong in China and Australia. Stable in Japan. 5 *Based on constant exchange rates

6 Superior portfolio Atlantic. Targeted commercial launch in orders expected until 2019 Leksell Gamma Knife Icon launched Information Guided Cancer Care Neuroscience Software Brachytherapy 9% 14% 42% 35% Oncology R&D costs per product area 6 Leksell Gamma Knife Icon is not approved for sale in all countries

7 Long-term growth agenda Market fundamentals Aging population Growing cancer incidence Capacity gap Increased usage of RT Favorable long-term growth prospects Growing medical need Leading product portfolio Superior R&D program Long-term strategic agenda Innovation leadership Commercial transformation Lifecycle management Grow the pie 7

8 Elekta 2014/15 Full-year report Håkan Bergström CFO

9 Financial performance Net sales -8%* Gross margin of 40% (43) Lower volumes Price pressure in some emerging markets Less software in North America EBITA of SEK 1,472 (2,183)** M Realized and anticipated bad debt losses of SEK 166 M not included Cash flow after continuous investments improved to SEK 867 M (494) Working capital reduction Increased investments Cash conversion 81% Tax rate: 22% (23) Dividends proposal of SEK 0.50 (2.00) per share 9 *Based on constant exchange rates ** Before non-recurring items and before realized and anticipate bad debt losses in FY 2014/15

10 Bad debt losses Realized losses in FY14/15 66 mkr Libya: Distributor left the country Macedonia - bankruptcy Iraq: Project canceled due to war Increased bad debt provisions 100 mkr Customer operations are financed either directly or indirectly by public funds low historic losses FY 15/16 - Increased risks in some emerging markets Geopolitical situation, civil unrest and war Total bad debt loss: SEK 166 M 10

11 Current order backlog Order backlog duration, SEK bn and % 2015/ % Order backlog development, SEK bn 17,1 2016/ % 10,5 11,9 13,6 2017/ % 8,1 8,1 After 2017/ % Total: / / / / / /15 11

12 Decline in large orders vs. last year Booked large orders and share of total % % 30% 25% 20% 15% 10% 5% Good value with software/services Higher complexity in negotiating/closing Higher demand on organization Driving higher volatility 0 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 0% Large Deals >50 msek Share of total Orders FY13/14: 2,4 bnsek Of total 19% FY14/15: 1,5 bnsek Of total 12% 12

13 Improvement in free cash flow cash conversion 81% 2014/15 Delta vs. 2013/14 Operating cash flow excl. depreciation and amortization Change in net working captial Continous investments minus depreciation and amortization Free cash flow =

14 Significant reduction of net working capital 20% Net working capital / net sales 15% 10% 8% 5% 0% -5% 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Inventory still at high level Improvement mainly related to North America 14 *DSO calculation based on: Accounts receivables, Accrued income, advances from customers, prepaid income

15 R&D investments for future growth SEK M % of net sales 14% 12% 10% 8% 6% 4% 2% 2014/15: step change in R&D investments MRI-guided radiation therapy system 0 08/09 09/10 10/11 11/12 12/13 13/14 14/15 R&D expenditures R&D expenditures, % of sales R&D after net of amortization and capitalization, % of sales 0% 15

16 Favorable currency development Currency effect in FY 2014/15: Net sales +9% EBITA neutral effect SEK M FX exposure Operating expenses Revenues Positive effect in FY 2015/16 expected with current exchange rates On net sales +7 % On EBITA MSEK USD EUR JPY GBP CNY SEK Other 16 *Based on current exchange rates

17 Summary Short-term market growth: currently low to mid-single digit Measures taken and new organization Favorable long-term growth prospects 17

18 Welcome to Elekta s Capital Markets Day June 11 - Stockholm

19 19 Q&A