· Order bookings amounted to SEK 5,128 M (5,224), equivalent to an increase of 5* percent.
In the second quarter order bookings increased 10* percent.
· Net sales increased 10* percent to SEK 4,355 M (4,180).
· EBITA amounted to SEK 555 M (599) before non-recurring items of SEK -61 M (-17).
· In the second quarter EBITA amounted to SEK 407 (468) before non-recurring items of SEK -27 M (-10).
· Net income amounted to SEK 183 M (273). Earnings per share amounted to SEK 0.48 (0.70) before dilution and SEK 0.48 (0.70) after dilution.
· Cash flow after continuous investments amounted to SEK -523 M (223). In the second quarter cash flow after investments was SEK 61 M (398). Significantly stronger cash flow is expected for the remainder of the year.
· Exchange rate movements compared to fiscal year 2012/13 are expected to have a negative impact of about 5 percentage points on EBITA growth.
· The outlook in local currency is reiterated. In fiscal year 2013/14, net sales is expected to grow by more than 10 percent in local currency. EBITA is expected to grow by approximately 10 percent in local currency.
· Niklas Savander has been appointed new President and CEO for Elekta effective May 1, 2014.
* Compared to last fiscal year based on constant exchange rates.
President and CEO comments
It is gratifying to see that our long-term growth strategy is continuing to be successful. Elekta’s order bookings increased 10* percent in the second quarter. In Europe, the Middle East and Africa order bookings was particularly strong and increased by 32* percent. In North America, order bookings rose 21* percent, which was significantly higher than the market as a whole. In Asia Pacific we remain confident of the performance for the full year. In the quarter order bookings declined, but this should be viewed in light of the sharp increase noted in the preceding year.
Strong progress for Versa HDTM
Elekta is the technology leader in our industry and sales of our latest linear accelerator, Versa HDTM, is developing strongly in Europe and North America. Continuously stretching the boundaries for modern cancer care is an important element in our assignment to improve the quality of life for people with cancer. Accordingly, it was particularly rewarding to note the great interest in our latest innovations presented at the ASTRO meeting in September. The launch of Esteya®, our new solution for the treatment of skin cancer, has been very successful. The new software solution Monaco® 5 recently received 510(k) clearance and interest from customers is exceeding expectations.
Major investments in product development
Elekta’s important development project, MR Linac, is being conducted in close collaboration with our users and will now be further intensified. Recently, our research consortium comprising some of the world’s leading cancer clinics and researchers convened, with MD Andersson Cancer Center of the US as host. It was an enthusiastic group, representing a large proportion of the collective global expertise in modern cancer care, which shared experiences and planned the next steps in development work.
We are also continuing our efforts in training and education. In September, we opened the Atlanta LINC (Learning and Innovation Center), in the US. The concept is being deployed in other markets and we recently opened LINC Beijing in China. Training and education is a key element in our strategy for emerging markets and LINC Beijing will further strengthen our leading position and our commitment to China.
Strong sales growth
Sales increased 10* percent during the first six months of the year. The growth was good in all regions.
EBITA, before non-recurring items, amounted to SEK 555 M for the first six months. Exchange-rate effects had a negative impact of SEK -90 M. Compared to the preceding year, the proportion of Leksell Gamma Knife® units in the product mix was lower, but deliveries are expected to be stronger during the second half of the year.
In line with the seasonal patterns of prior years, cash flow is expected to be significantly stronger for the remainder of the year. Continuous investments during the period increased by SEK 200 M over last year which is mainly attributable to the MR Linac project and training and education centers. Cash flow after continuous investments was SEK 61 M during the second quarter.
Outlook for the full-year unchanged
We reiterate the outlook for the full-year. Net sales is expected to grow by more than 10 percent in local currency and EBITA is expected to grow by approximately 10 percent in local currency. Our strategy is successful and our efforts are generating benefits for shareholders and cancer patients. We will continue to represent a pioneering spirit in modern cancer care and in the treatment of neurological disorders. We have a proven strategy, a unique market position, world leading technology and a firm commitment to continue develop modern cancer care.
Tomas Puusepp, President and CEO
* Compared with last fiscal year, based on constant exchange rates.
Elekta will host a telephone conference at 10:00 – 11:00 CET on December 4, 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 938863.
Swedish dial-in number: +46 (0)8 5052 0110, UK dial-in number: +44 (0)20 7162 0077, US dial-in number: + 1 877 491 0064.
The telephone conference will also be broadcasted over the internet (listen only). Please use the link: https://engage.vevent.com/rt/elekta~elektaq2report
Interim report May– January 2013/14 February 27, 2014
Year-end report May – April 2013/14 May 28, 2014