Jay Hoey. Executive Vice President. Region North America
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1 Region North America Jay Hoey Executive Vice President Region North America
2 Market fundamentals - North America Canada 34,468,000 population 174,000 new cancer incidences/year 38 radiation oncology facilities Cancer incidence All cancers incidence rates, men and women Age-standardized rates per population Source: GLOBOCAN 2008 Men Women Canada USA Mexico United States 308,745,538 population 1,529,560 new cancer incidences/year 2,170 radiation oncology facilities 2,700 outpatient medical oncology facilities 3,200 pathology labs 3,000 cancer registries 1,570 neuro programs 400 neurosurgical centers Mexico 112,322,757 population 109,000 new cancer incidences/year
3 Market area Canada 38 radiation oncology centers 14 sites have Elekta ROIS 5 sites have RTP 10 sites have Clarity 2 have Elekta MOIS 203 external beam delivery systems 51 Elekta linacs in 12 centers 6 MEGS in operation 1 Elekta MEG 4 Leksell Gamma Knife units 3 Leksell Gamma Knife Perfexion 1 Leksell Gamma Knife 4C
4 Market area - United States 2,170 radiation therapy facilities 1,340 sites have Elekta ROIS 450 sites have Elekta RTP 35 sites have Clarity 3,620 external beam delivery systems 413 Elekta linacs in 259 centers 2,200 free-standing medical oncology practices 241 sites have Elekta MOIS 130 sites have Elekta MOIS/ROIS 3,000 cancer registries 1100 Elekta registries 3,200 pathology labs 425 labs have Elekta Powerpath 400 neurosurgical centers 116 Leksell Gamma Knife Perfexion 37 MEGs in operation 12 Elekta MEGS
5 Market area - Mexico 109,000 new cancer incidences/year Relatively lower incidence but data not reliable Popular destination for alternative treatments 13 Elekta linacs in 11 sites 6 ROIS 2 Leksell Gamma Knife units
6 Economic outlook North America The recovery continues, but slowly Spotty economic recovery Mixed results in consumer, housing, manufacturing sectors Growth in large, tech sectors shield weakness New jobs being created, but growth slowing Unexpected jobless claims rose in Q1 Soft consumer spending Weakening dollar Corporate profits in positive territory, but stalling 0.9% drop in last 12 months US Healthcare expenditures rising, but more slowly Up 4% in Smallest increase in > 50 years 2.5 trillion USD, > 17.5% of GDP another record
7 Medical device outlook North America US medical device industry 95 Billion USD, 2010 Headwinds Admissions and procedural volume pressures Healthcare reforms Reimbursement pressure Regulatory involvement Tailwinds New product launches Aging population 40 million, > 65 in 2010, growing to 72 million in 2030 Aging equipment Pent-up demand Accountable care Cost and quality control Closer scrutiny of medical bills, more stringent pre-approvals Zack s investment research March 31, 2011
8 Medical device outlook North America Reimbursement pressure CMS preliminary news by August CMS final rules in November Physician fee schedule pressure More stable on hospital side Downward pressure as 2012 approaches (economy, Affordable Care Act) Affordable Care Organization (ACO) start date January 2012
9 Oncology/Neuro market outlook North America Radiation oncology equipment a replacement market >85% linacs are replacement machines New technology impacts replacement frequency Population demographics increases demand Higher cancer incidence with age Geographic distribution impacts capacity Increasing adoption of SRS/SRT Smaller fields, less fractions, higher fractional doses HITECH act incentives/disincentives gaining momentum Elekta MOSAIQ is only certified comprehensive oncology EMR/PM system Reimbursement uncertainty Downward pressure regarding healthcare reform, economy Rising importance of clinical efficacy
10 Financial highlights - Order trend by year North America +3.7% +5.7% +1.8% FY 07/08 FY 08/09 FY 09/10 FY 10/11
11 Performance FY 2010/11 Elekta North America ROIS MOIS RTP Service Neuro Linacs SW upgrades, meaningful use, replacements driving growth New products, increased focus driving growth Installed base, service excellence driving growth Elekta leading position in SRS driving growth Competitor installed base, new product, stalling growth Radiation Oncology Information System (ROIS) Medical Oncology Information System (MOIS) Radiation Treatment Planning (RTP)
12 Linac share - Installed base and new orders Region North America Linac share - installed base (FY10/11) Linac share new orders (FY10/11) Management Analysis Siemens Tomo/ Accuray 10% 7% 11% Elekta Siemens 4% Tomo/Accuray 3% 19% Elekta Varian 72% Varian 74% Sources IMV, MD Buyline, Internal Win / Loss reports, Sales and Marketing G2
13 Replacing Elekta installed base Linac age Age
14 Service excellence Industry recognition MD Buyline ranks Elekta #1 vendor in 2010 and 2011 Elekta - Highest overall composite rankings in four categories: Linear accelerators Stereotactic Radiosurgery Oncology Information Systems Treatment Planning Systems Elekta - 1st place in 15 of 16 quarterly results for 2010 and trending above market average for the full year (SRS, Linacs, OIS). KLAS recognizes MOSAIQ with two critical awards Elekta MOSAIQ - #1 in Oncology 2010 Top 20 Best in KLAS Awards: Software & Professional Services Elekta MOSAIQ - # Oncology IT Balancing Act Report MICCAI 2010 awards ABAS two first place honors Head & Neck Autosegmentation EMPIRE10 registration algorithms Black Book honors Elekta with top 2011 rankings Elekta - Top Honors Overall 2011* End-to-End Comprehensive Electronic Medical Records Software Oncology/ Hematology Elekta - #1 Electronic Health Records & Document Management 2009 Oncology / Hematology Top Vendor by Function Elekta - #1 Practice Management and Revenue Cycle Elekta - #1 Accessibility *2011 is the first year Black Book has ranked oncology Elekta scored #1 in 13 of 18 categories
15 Strategy North America Service and aftersales are key growth drivers Linac share - installed base (FY10/11) OIS share - installed base (FY10/11) Siemens Tomo/ Accuray Varian 10% 7% 72% 11% Elekta Varian 36% 64% Elekta/ Siemens
16 Elekta North America going forward Installed base Continue to improve service excellence Advanced solutions for streamlined workflow, advanced treatments Consulting solutions for process re-engineering Replacement market Lower entry barriers into competitor sites Financing flexibility SRS/SRT solutions Elekta well positioned via SRS/SRT expertise, Gamma Knife performance, product pipeline SW leadership Build on MOSAIQ momentum (e.g. MOSAIQ RTP, meaningful use) Continue to expand installed base, multi-center solutions
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