Quarterly Report • Feb 24, 2023
Quarterly Report
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Interim report, May–January 2022/23
| Q3 | First nine months | ||||||
|---|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | Δ | 2022/23 | 2021/22 | Δ | |
| Gross order intake | 5,316 | 4,441 | 9% | 1 13,785 |
12,467 | -2% | 1 |
| Net sales | 4,337 | 3,602 | 8% | 1 11,745 |
10,309 | 2% | 1 |
| Adjusted gross margin 2 | 38.4% | 36.7% | 1.6 ppts | 38.2% | 37.5% | 0.7 ppts | |
| Adjusted EBIT 3 | 463 | 340 | 36% | 911 | 1,074 | -15% | |
| Adjusted EBIT margin 3 | 10.7% | 9.4% | 1.3 ppts | 7.8% | 10.4% | -2.7 ppts | |
| Gross margin | 38.1% | 36.7% | 1.3 ppts | 37.6% | 37.5% | 0.1 ppts | |
| EBIT | 331 | 340 | -3% | 647 | 1,074 | -40% | |
| EBIT margin | 7.6% | 9.4% | -1.8 ppts | 5.5% | 10.4% | -4.9 ppts | |
| Cash flow after continuous investments |
-163 | 187 | -188% | -1,174 | -173 | -578% | |
| Adjusted earnings per share before/after dilution, SEK 4 | 0.84 / 0.83 | 0.60 / 0.60 | 39% | 1.58 / 1.58 | 1.93 / 1.93 | -18% | |
| Earnings per share before/after dilution, SEK | 0.57 / 0.56 | 0.60 / 0.60 | -6% | 1.04 / 1.04 | 1.93 / 1.93 | -46% |
1Compared to last fiscal year based on constant exchange rates.
Adjusted gross margin = Gross margin excluding items affecting comparability attributable to the Cost-reduction Initiative within the Resilience and Excellence Program, see page 26. Adjusted EBIT = Operating income (EBIT) excluding items affecting comparability attributable to the Cost-reduction Initiative within the Resilience and Excellence Program, see page 27. Adjusted earnings per share = Net income attributable to Parent Company shareholders, excluding items affecting comparability attributable to the Cost-reduction Initiative, in relation to the weighted average number of shares (excluding treasury shares), see page 27.
This is information is such that Elekta AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication by the below mentioned contact persons at 07:30 CET on February 24, 2023.
Forward-looking information. This report included forward-looking statements including, but not limited to, statements relation to operational and financial performance, market conditions, and other similar matters. These forward-looking statements are based on current expectations about future events. Although the expectations described in these statements are assumed to be reasonable, there is no guarantee that such forward-looking statements will materialize or are accurate. Since these statements involve assumptions and estimates that are subject to risks and uncertainties, results could differ materially from those set out in the statement. Some of these risks and uncertainties are described further in the section "Risk and uncertainties". Elekta undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, whether as a result of new information, future events or otherwise, except as required by law or stock exchange regulations.
Demand for radiotherapy continued to improve in the quarter and supported our order growth. We managed the supply chain challenges well and strong installation volumes at the end of the quarter increased revenue. The Cost-reduction Initiative is progressing according to plan, supporting profitable growth going forward.
We experienced positive order momentum in most of our markets. The large Italian tender lifted the order intake in Europe, and China contributed with strong order volumes supported by public healthcare investments in cancer care. We were able to hold a good momentum in installation volumes leading to double-digit revenue growth in Americas and EMEA. APAC was impacted by lower installations in China due to the wave of Covid cases, but we expect Chinese volumes already to recover in the coming quarter.
During the last year, we have extensively worked with price management across our business lines and regions to off-set the impact from higher component and supply chain costs. Price realization for new orders has showed good progress, and we also started to see the benefit in our revenue.
Our margins improved both sequentially and compared to last year. With that stated we are not yet back to historic levels. We will continue to face high supply chain costs and component shortages but expect a steady gradual improvement over the coming quarters. Through the Cost-reduction Initiative we have so far achieved savings of SEK 120 M with the aims of a yearly run-rate reduction of around SEK 450 M at the end of this fiscal year. During the quarter we have continued to drive our excellence initiatives to improve and digitalize our processes around supply chain and service.
To support improved access to cancer care, we signed an agreement to acquire business assets from our current distributor in Thailand, Premier Business Inter. With local presence, Elekta will increase the commitment to Thai customers while strengthening the position in an already good market that has substantial further potential.
Accelerating innovation is one of the pillars in our ACCESS 2025 strategy and we continue to invest in our innovation projects around new linac platforms, software development and Unity.
In February, we received formal validation of our submitted science-based targets. I would like to highlight our scope 3 targets, which is the emissions occurring across our value chain. Here we have committed to reducing the emissions from the use of our products as well as to engage suppliers to set their own science-based targets.
We expect the uncertain macroeconomic environment to impact our business during the coming quarters. The improved order backlog conversion will continue to support our revenue growth. Component shortages and inflation will remain, putting pressure on margins, whereas the Cost-reduction Initiative will contribute positively.
Gustaf Salford President and CEO
8% revenue growth
Overall the order situation was good in the third quarter. Mature markets showed good momentum driven by pent-up demand. Global macroeconomic challenges had a larger impact on emerging markets, which continued a softer order development. Total order intake increased by 9 percent based on constant exchange rates compared to last year. Linacs and Neuro had a strong quarter, and geographically development was especially strong in APAC.
Order backlog increased and amounted to SEK 42,904 M, compared to SEK 39,656 M on April 30, 2022. The difference is mainly explained by a positive translation effect of SEK 2,441 M.
| Q3 | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2022/23 2021/22 | 1 Δ |
Δ | 2022/23 2021/22 | 1 Δ |
Δ | ||
| Americas | 1,259 | 1,039 | 3% | 21% | 3,405 | 3,590 | -21% | -5% |
| EMEA | 2,218 | 2,087 | 0% | 6% | 5,192 | 4,797 | 1% | 8% |
| APAC | 1,840 | 1,315 | 27% | 40% | 5,187 | 4,079 | 12% | 27% |
| Group | 5,316 | 4,441 | 9% | 20% | 13,785 | 12,467 | -2% | 11% |
1 Based on constant exchange rates.
In the Americas, order intake increased by 3 percent during the third quarter based on constant exchange rates. Both North and Latin America showed growth. The latter was driven by strong order intake in Mexico after winning multiple public tenders.
In EMEA, order intake based on constant exchange rates was flat compared to last year. Europe showed double-digit growth on top of last year's strong growth and was driven by the two big tenders in Spain and Italy. The slowdown was reported both in the Middle East and Africa but dominated by the Middle East due to a weak market in Egypt and Turkey as a consequence of their domestic macroeconomic situation.
Orders in APAC increased by 27 percent based on constant exchange rates during the third quarter. The high growth rate in APAC was explained by strong development in China, supported by governmental credits to improve medical devices in the country, but also a great momentum in East Asia both in emerging countries like Indonesia and mature markets like Korea. Australia also contributed to the uptake.
Elekta's revenues showed solid growth with an uptick in installation volume at the end of the quarter. This was achieved despite continued challenges in the supply chain and fewer installations in China due to the large number of Covid infections. Based on constant exchange rates, net sales increased by 8 percent. In SEK, net sales increased by 20 percent to SEK 4,337 M (3,602).
| Q3 | First nine months | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 1 Δ |
Δ | 2022/23 | 2021/22 | 1 Δ |
Δ |
| Americas | 1,342 | 1,003 | 15% | 34% | 3,707 | 2,941 | 6% | 26% |
| EMEA | 1,524 | 1,214 | 16% | 26% | 4,047 | 3,641 | 4% | 11% |
| APAC | 1,471 | 1,385 | -3% | 6% | 3,991 | 3,726 | -3% | 7% |
| Group | 4,337 | 3,602 | 8% | 20% | 11,745 | 10,309 | 2% | 14% |
1 Based on constant exchange rates.
Development was positive in all geographic regions, except APAC. In the Americas, the North American market had double-digit growth together with Latin America. Within EMEA both Europe and the Middle East & Africa contributed with strong growth in the quarter. The negative development in APAC was impacted by Covid in China, and fewer installations in Japan. India continued to show strong growth in the quarter.
Service grew with 3 percent based on constant exchange rates with growth in the majority of the business lines. Solutions increased by 12 percent based on constant exchange rates. At the end of the period, Elekta had an installed base of approximately 7,100 devices, of which about 5,200 units were linacs, MR-Linacs or Leksell Gamma Knife systems. 47 percent of the installed base of linacs was in emerging (underserved) markets with growth of around 50 systems in the quarter.
| Q3 | First nine months | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 1 Δ |
Δ 2022/23 | 2021/22 | 1 Δ |
Δ | |
| Solutions | 2,628 | 2,109 | 12% | 25% | 6,656 | 5,994 | 0% | 11% |
| Service | 1,709 | 1,494 | 3% | 14% | 5,089 | 4,315 | 5% | 18% |
| Total | 4,337 | 3,602 | 8% | 20% | 11,745 | 10,309 | 2% | 14% |
1 Based on constant exchange rates.
2 Rolling twelve months.
Double-digit growth in revenue in the U.S. and Europe
Adjusted gross margin amounted to 38.4 percent (36.7) in the third quarter. The difference was explained by a positive contribution of around 320 basis points from the net sales growth and of around 150 basis points from foreign exchange rates. These effects were partially offset by higher material costs and inflation of around 200 basis points, and unfavorable Solutions/ Service volume mix of around 100 basis points.
Expenses, excluding items affecting comparability, decreased by 1 percent during the third quarter based on constant exchange rates. The decrease is explained by lower net R&D expenditure and administrative expenses partially offset by higher selling expenses. The higher selling expenses reflect more inperson activities and customer events. Net R&D expenditure decreased versus last year as amortizations were somewhat higher. Amortization of intangible assets and depreciation of tangible fixed assets amounted to a total of SEK 275 M (251).
Foreign exchange had a positive effect on EBIT before the impact of current and last year's hedges. After those hedges FX had a slight negative impact on EBIT. Adjusted EBIT was SEK 463 M (340), representing a margin of 10.7 percent (9.4). EBIT, including items affecting comparability, amounted to SEK 331 M (340), which represented a margin of 7.6 percent (9.4). Items affecting comparability in the third quarter consisted mainly of personnel related costs and impairment of office facilities and amounted to SEK 132 M, whereof SEK 12 M impacted gross margin.
Net financial items increased to SEK -58 M (-40). The key driver was higher interest expenses as a result of increased interest rates. Taxes amounted to SEK -57 M (-72), representing a tax rate of 20.7 percent (24.0). The lower tax rate is a consequence of a tax refund from earlier years and available tax incentives. Net income amounted to SEK 216 M (228) and earnings per share amounted to SEK 0.57 (0.60) before dilution and SEK 0.56 (0.60) after dilution. Adjusted earnings per share amounted to SEK 0.84 (0.60) before dilution and SEK 0.83 (0.60) after dilution.
With SEK -163 M (187), the third quarter cash flow after continuous investments was lower compared to last year due to weaker working capital (see working capital, page 6). Investments in intangible assets amounted to SEK 315 M (331) and were mainly related to R&D investments in the Linac family and software. Investments in tangible assets increased to SEK 74 M (56). Cash conversion in the third quarter was 33 percent (97).
| Q3 | First nine months | |||
|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 |
| Operating cash flow | 670 | 384 | 1,168 | 1,346 |
| Change in w orking capital |
-445 | 190 | -1,196 | -528 |
| Cash flow from operating | ||||
| activities | 225 | 573 | -27 | 818 |
| Continuous investments | -389 | -387 | -1,146 | -991 |
| Cash flow after continuous | ||||
| investments | -163 | 187 | -1,174 | -173 |
| EBITDA | 684 | 591 | 1,529 | 1,849 |
| Operational cash conversion | 33% | 97% | -2% | 44% |
14% adj. R&D expenditure of net sales, RTM
Net working capital as a percentage of net sales (rolling twelve months) was 1 percent (-3). The higher levels of accounts receivable and customer advances was a consequence of more installations in the third quarter, whereas higher inventory will secure future installations as a response to extended lead times in the supply chain. Accrued income increased due to installations of large public tenders in southern Europe and MR-Linac systems, which have longer billing terms. All individual working capital items were impacted by currency movements, while the net effect on the total working capital from currencies was limited. For more information, see page 25.
Cash and cash equivalents and short-term investments amounted to SEK 1,218 M (4,366). Interest-bearing liabilities, excluding lease liabilities, amounted to SEK 4,664 M (6,071). Net debt increased to SEK 3,447 M (1,705) as a result of investments in innovation and weaker working capital. Net debt in relation to EBITDA was 1.46 (0.63). The average maturity of interest-bearing liabilities was 3.3 years.
| Jan 31 | Jan 31 | Apr 30 | |
|---|---|---|---|
| SEK M | 2023 | 2022 | 2022 |
| Long-term interest-bearing liabilities | 4,152 | 4,625 | 4,099 |
| Short-term interest-bearing liabilities | 512 | 1,446 | 510 |
| Cash and cash equivalents and short-term | |||
| investments | -1,218 | -4,366 | -3,077 |
| Net debt | 3,447 | 1,705 | 1,532 |
| Long-term lease liabilities | 729 | 877 | 841 |
| Short-term lease liabilities | 246 | 235 | 245 |
| Net debt including lease liabilities | 4,422 | 2,817 | 2,618 |
The exchange rate effect from the translation of cash and cash equivalents amounted to SEK -20 M (149). The translation difference in interest-bearing liabilities amounted to SEK 13 M (95).
After the third quarter, in February, the upcoming maturing debt in March has been refinanced and thereby the duration of the debt portfolio has been extended to 4.1 years.
Elekta's sustainability agenda is set on improving access to healthcare globally while operating a responsible and sustainable business. The UN Sustainable Development Goals (SDGs) guide Elekta's approach to sustainability. The sustainability focus areas are: Access to Healthcare, Environmental Action, Business Ethics and People in Focus.
In February, Elekta's science-based targets were validated by the Science Based Targets initiative (SBTi). This means that Elekta's greenhouse gas emissions reduction targets are aligned with climate science, to limit the
1.46 Net debt/EBITDA
global temperature increase to 1.5-2°C in accordance with the Paris agreement. Elekta's science-based targets are as follows (base year 2021/22):
Scope 1+2: For Scope 1 (including direct emissions from Elekta's own operations such as facility gas heating, SF6 refrigerant use and the car fleet) and Scope 2 (including indirect emissions from purchased electricity and district heating) Elekta shall reduce absolute emissions by 4.6 percent annually over the next 10 years.
Scope 2: For Scope 2 (including indirect emissions from purchased electricity and district heating) Elekta shall transit to 100 percent renewable electricity by 2030.
Scope 3: In Scope 3 (including indirect emissions occurring across Elekta's value chain) Elekta has two targets, one involving the use of products and one involving suppliers. Emission from the use of, and the end of life treatment of Elekta's products shall be reduced by 55 percent per radiotherapy treatment course by fiscal year 2031/32. Elekta shall engage selected suppliers to have science-based targets by fiscal year 2026/27. The targeted selection corresponds to 27.5 percent of supply chain emissions.
Elekta's presence in many geographical markets exposes the Group to political and economic risks on a global scale and/or in individual countries. For more details, please see the Annual Report 2021/22, page 36.
Covid and the war in Ukraine impact Elekta's operations, supply and demand. These events have impacted supply chains and led to interest rate and inflation pressure, as well as foreign exchange rate fluctuations affecting Elekta's business and financial results. They may also lead to an economic downturn. In fiscal year 2020/21, the Group's revenue in Russia, Belarus and Ukraine represented about 2 percent. Elekta has neither production nor Tier 1 suppliers in these three countries.
In December, the first patients completed their full course of radiation therapy treatment with Elekta Unity MR-Linac using Comprehensive Motion Management (CMM) with True Tracking and automatic gating functionalities at University Medical Center (UMC) Utrecht.
• ≥50% of net income for the year
1 For more details about the previous significant events please see respective quarterly report.
In the first quarter 2022/23, Elekta accelerated the Resilience and Excellence Program by launching a Cost-reduction Initiative to reduce structural costs and enhance productivity across the organization. The Cost-reduction Initiative will generate annual savings of approximately SEK 450 M. The measures include increasing productivity in operations and service as well as optimizing the innovation pipeline and leverage the global product organization. The Initiative will also drive efficiencies in selling and administration functions. In the first nine months of 2022/23, the Initiative has reduced spending by SEK 120 M. Implementation costs related to the Initiative are expected to amount to up to SEK 400 M and are reported as items affecting comparability. In the first nine months of 2022/23 the implementation costs were SEK 263 M, see page 26.
The average number of employees during the period was 4,614 (4,591). The average number of employees in the Parent Company was 56 (56).
Total number of registered shares on January 31, 2023, was 383,568,409 of which 14,980,769 were A-shares and 368,587,640 B-shares. On January 31, 2023 1,485,289 shares were treasury shares held by Elekta.
Stockholm February 24, 2023
Gustaf Salford President and CEO
This report has not been reviewed by the Company's auditors.
1 For more details about the previous significant events please see respective quarterly report.
| Q3 | First nine months | 12 months | ||||
|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 | RTM | 2021/22 |
| Net sales | 4,337 | 3,602 | 11,745 | 10,309 | 15,983 | 14,548 |
| Cost of products sold | -2,686 | -2,279 | -7,326 | -6,443 | -9,995 | -9,111 |
| Gross income | 1,652 | 1,323 | 4,419 | 3,866 | 5,989 | 5,436 |
| Selling expenses | -392 | -342 | -1,204 | -975 | -1,584 | -1,355 |
| Administrative expenses | -416 | -303 | -1,073 | -864 | -1,382 | -1,173 |
| R&D expenses | -364 | -339 | -1,113 | -1,040 | -1,444 | -1,372 |
| Other operating income and expenses | -22 | -43 | -46 | -77 | -17 | -48 |
| Exchange rate differences | -126 | 44 | -336 | 164 | -345 | 155 |
| Operating income | 331 | 340 | 647 | 1,074 | 1,217 | 1,643 |
| Financial items, net | -58 | -40 | -137 | -106 | -173 | -142 |
| Income after financial items | 273 | 300 | 510 | 968 | 1,044 | 1,501 |
| Income tax | -57 | -72 | -112 | -232 | -225 | -345 |
| Net income for the period | 216 | 228 | 398 | 736 | 819 | 1,157 |
| Net income for the period attributable to: | ||||||
| Parent Company shareholders | 216 | 229 | 397 | 738 | 813 | 1,154 |
| Non-controlling interests | 0 | - 1 |
0 | - 2 |
6 | 3 |
| Average number of shares | ||||||
| Before dilution, millions | 382 | 382 | 382 | 382 | 382 | 382 |
| After dilution, millions | 382 | 382 | 382 | 382 | 382 | 382 |
| Earnings per share | ||||||
| Before dilution, SEK | 0.57 | 0.60 | 1.04 | 1.93 | 2.13 | 3.02 |
| After dilution, SEK | 0.56 | 0.60 | 1.04 | 1.93 | 2.13 | 3.02 |
| Q3 | First nine months | 12 months | ||||
|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 | RTM | 2021/22 |
| Net income for the period | 216 | 228 | 398 | 736 | 819 | 1,157 |
| Other comprehensive income: | ||||||
| Items that will not be reclassified to the income statement: | ||||||
| Remeasurements of defined benefit pension plans | - | 0 | - | 10 | 17 | 27 |
| Change in fair value of equity instruments | - | 0 | -15 | - 1 |
-58 | -45 |
| Tax | - | 0 | - 9 |
- 3 |
- 4 |
2 |
| Total items that will not be reclassified to the income statement | - | 0 | -24 | 6 | -46 | -16 |
| Items that subsequently may be reclassified to the income statement: | ||||||
| Revaluation of cash flow hedges |
314 | -205 | 104 | -321 | -23 | -448 |
| Translation differences from foreign operations | 25 | 736 | 698 | 673 | 783 | 758 |
| Tax | -65 | 42 | -21 | 66 | 5 | 92 |
| Total items that subsequently may be reclassified | ||||||
| to the income statement | 274 | 573 | 781 | 418 | 765 | 402 |
| Other comprehensive income for the period | 274 | 573 | 757 | 424 | 719 | 386 |
| Total comprehensive income for the period | 490 | 801 | 1,155 | 1,160 | 1,538 | 1,543 |
| Comprehensive income attributable to: | ||||||
| Parent Company shareholders | 490 | 802 | 1,154 | 1,163 | 1,531 | 1,540 |
| Non-controlling interests | 0 | - 1 |
1 | - 3 |
6 | 3 |
| Jan 31 | Jan 31 | Apr 30 | |
|---|---|---|---|
| SEK M | 2023 | 2022 | 2022 |
| Non-current assets | |||
| Intangible assets | 11,492 | 9,900 | 10,262 |
| Right-of-use assets | 795 | 999 | 975 |
| Tangible assets | 999 | 974 | 954 |
| Financial assets | 726 | 692 | 615 |
| Deferred tax assets | 713 | 555 | 616 |
| Total non-current assets | 14,725 | 13,120 | 13,423 |
| Current assets | |||
| Inventories | 3,337 | 2,743 | 2,533 |
| Accounts receivable | 4,239 | 3,719 | 3,647 |
| Accrued income | 2,287 | 1,720 | 1,796 |
| Other current receivables | 2,165 | 1,910 | 1,827 |
| Cash and cash equivalents | 1,218 | 4,366 | 3,077 |
| Total current assets | 13,246 | 14,457 | 12,880 |
| Total assets | 27,971 | 27,577 | 26,303 |
| Equity attributable to Parent Company shareholders | 9,625 | 8,950 | 8,913 |
| Non-controlling interests | 4 | - 3 |
3 |
| Total equity | 9,628 | 8,947 | 8,916 |
| Non-current liabilities | |||
| Interest-bearing liabilities | 4,152 | 4,625 | 4,099 |
| Lease liabilities | 729 | 877 | 841 |
| Other liabilities | 783 | 823 | 884 |
| Total non-current liabilities | 5,664 | 6,325 | 5,824 |
| Current liabilities | |||
| Interest-bearing liabilities | 512 | 1,446 | 510 |
| Lease liabilities | 246 | 235 | 245 |
| Accounts payable | 1,390 | 1,187 | 1,352 |
| Advances from customers | 4,924 | 4,267 | 4,161 |
| Prepaid income | 2,416 | 2,238 | 2,342 |
| Accrued expenses | 1,937 | 1,754 | 1,901 |
| Other current liabilities | 1,254 | 1,180 | 1,054 |
| Total current liabilities | 12,679 | 12,306 | 11,564 |
| Total equity and liabilities | 27,971 | 27,577 | 26,303 |
| Jan 31 | Apr 30 | ||
|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2021/22 |
| Attributable to Parent Company shareholders | |||
| Opening balance | 8,913 | 8,197 | 8,197 |
| Comprehensive income for the period | 1,154 | 1,163 | 1,540 |
| Incentive programs | 14 | 11 | 17 |
| Dividend | -459 | -420 | -841 |
| Total | 9,625 | 8,950 | 8,913 |
| Attributable to non-controlling interests | |||
| Opening balance | 3 | 0 | 0 |
| Comprehensive income for the period | 1 | - 3 |
3 |
| Total | 4 | - 3 |
3 |
| Closing balance | 9,628 | 8,947 | 8,916 |
| Q3 | First nine months | 12 months | ||||
|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 | RTM | 2021/22 |
| Income after financial items | 273 | 300 | 510 | 968 | 1,044 | 1,501 |
| Amortization and depreciation | 275 | 251 | 803 | 775 | 1,066 | 1,039 |
| Impairment of Right of use assets | 78 | - | 79 | - | 79 | - |
| Interest net | 44 | 24 | 95 | 76 | 125 | 106 |
| Other non-cash items | 110 | -43 | 13 | -79 | -118 | -211 |
| Interest received and paid | -38 | -16 | -81 | -79 | -116 | -114 |
| Income taxes paid | -73 | -133 | -251 | -315 | -387 | -452 |
| Operating cash flow | 670 | 384 | 1,168 | 1,346 | 1,692 | 1,869 |
| Change in inventories | -102 | -140 | -699 | -267 | -528 | -97 |
| Change in operating receivables | -828 | 75 | -1,087 | -177 | -1,201 | -291 |
| Change in operating liabilities | 485 | 254 | 590 | -84 | 1,050 | 376 |
| Change in w orking capital |
-445 | 190 | -1,196 | -528 | -679 | -12 |
| Cash flow from operating activities | 225 | 573 | -27 | 818 | 1,013 | 1,858 |
| Investments in intangible assets | -315 | -331 | -990 | -845 | -1,365 | -1,220 |
| Investments in tangible assets | -74 | -56 | -156 | -145 | -199 | -188 |
| Continuous investments | -389 | -387 | -1,146 | -991 | -1,564 | -1,408 |
| Cash flow after continuous investments | -163 | 187 | -1,174 | -173 | -551 | 450 |
| Business combinations, divestments and investments in other shares | -36 | -27 | -38 | -147 | -131 | -241 |
| Cash flow after investments | -199 | 160 | -1,212 | -321 | -682 | 209 |
| Dividends | 0 | - | -459 | -420 | -880 | -841 |
| Cash flow from other financing activities |
-98 | 1,260 | -202 | 543 | -1,631 | -886 |
| Cash flow for the period | -297 | 1,420 | -1,873 | -198 | -3,192 | -1,517 |
| Change in cash and cash equivalents during the period | ||||||
| Cash and cash equivalents at the beginning of the period | 1,535 | 2,796 | 3,077 | 4,411 | 4,366 | 4,411 |
| Cash flow for the period |
-297 | 1,420 | -1,873 | -198 | -3,192 | -1,517 |
| Exchange rate differences | -20 | 149 | 14 | 154 | 43 | 183 |
| Cash and cash equivalents at the end of the period | 1,218 | 4,366 | 1,218 | 4,366 | 1,218 | 3,077 |
| First nine months | |||||||
|---|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | |||||
| Operating expenses | - 6 |
-269 | |||||
| Financial net | 712 | 582 | |||||
| Income after financial items | 706 | 313 | |||||
| Appropriations | - | - | |||||
| Tax | -58 | 49 | |||||
| Net income for the period | 648 | 362 | |||||
| Statement of comprehensive income | |||||||
| Net income for the period | 648 | 362 | |||||
| Other comprehensive income | - | - | |||||
| Total comprehensive income | 648 | 362 |
| Jan 31 | Apr 30 | |
|---|---|---|
| SEK M | 2023 | 2022 |
| Non-current assets | ||
| Intangible assets | 35 | 39 |
| Shares in subsidiaries | 2,795 | 2,752 |
| Receivables from subsidaries | 2,132 | 2,160 |
| Other financial assets | 29 | 44 |
| Deferred tax assets | 21 | 44 |
| Total non-current assets | 5,012 | 5,039 |
| Current assets | ||
| Receivables from subsidaries | 4,812 | 2,599 |
| Other current receivables | 34 | 42 |
| Cash and cash equivalents | 211 | 1,863 |
| Total current assets | 5,057 | 4,504 |
| Total assets | 10,069 | 9,543 |
| Shareholders' equity | 2,557 | 2,368 |
| Non-current liabilities | ||
| Interest-bearing liabilities | 4,152 | 4,099 |
| Provisions | 14 | 13 |
| Total non-current liabilities | 4,166 | 4,112 |
| Current liabilities | ||
| Interest-bearing liabilities | 500 | 500 |
| Liabilities to Group companies | 2,751 | 2,482 |
| Other current liabilities | 95 | 81 |
| Total current liabilities | 3,346 | 3,063 |
| Total shareholders' equity and liabilities | 10,069 | 9,543 |
This interim report is prepared, with regards to the Group, according to IAS 34 and the Swedish Annual Accounts Act and, with regards to the Parent Company, according to the Swedish Annual Accounts Act and RFR 2. The accounting principles applied are consistent with those presented in Note 1 of the Annual Report 2021/22.
New or revised standards and interpretations, not yet applied, are not considered to have a material impact on the Elekta Group´s financial statements.
All figures are stated in SEK M and, accordingly, rounding differences can occur. Comparisons refer to the corresponding period for the prior year, unless otherwise stated.
Related party transactions are described in note 35 in the Annual Report for 2021/22. No material changes have taken place in relations or transactions with related parties companies compared with the description in the Annual report 2021/22.
For Group companies with a functional currency other than Swedish kronor, order intake and income statements are translated at average exchange rates for the reporting period, while order book and balance sheets are translated at closing exchange rates.
| Country | Currency | Average rate | Closing rate | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Jan 31 | Apr 30 | ||||||||
| 2023 | 2022 | 1 Δ |
2023 | 2022 | 2022 | 1 Δ |
2 Δ |
|||
| Euroland | 1 EUR | 10.769 | 10.176 | 6% | 11.299 | 10.513 | 10.349 | 7% | 9% | |
| Great Britain | 1 GBP | 12.483 | 11.945 | 5% | 12.868 | 12.635 | 12.294 | 2% | 5% | |
| Japan | 1 JPY | 0.077 | 0.078 | -2% | 0.080 | 0.082 | 0.075 | -2% | 6% | |
| United States | 1 USD | 10.453 | 8.713 | 20% | 10.428 | 9.416 | 9.839 | 11% | 6% |
1 January 31, 2023, vs January 31, 2022.
2 January 31, 2023, vs April 30, 2022.
Elekta applies geographical segmentation. Order intake, net sales and contribution margin for the respective regions are reported to Elekta's CFO and CEO (chief operating decision makers). The regions' expenses are directly attributable to the respective regions' reported figures including cost of products sold. Global costs for R&D, marketing, management of product supply centers and Parent Company are not allocated per region. Currency exposure is concentrated to product supply centers. The majority of exchange differences in operations are reported in global costs.
Elekta's operations are characterized by significant quarterly variations in volumes and product mix, which have a direct impact on net sales and profits. This is accentuated when the operation is split into segments, as is the impact of currency fluctuations between the years. Revenue from solutions are recognized at a point in time and revenue from services are recognized over time.
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 1,342 | 1,524 | 1,471 | - | 4,337 | |
| Operating expenses | -752 | -1,035 | -946 | - | -2,733 | 63% |
| Contribution margin | 589 | 489 | 525 | - | 1,604 | 37% |
| Contribution margin, % | 44% | 32% | 36% | 37% | ||
| Global costs | - | - | - | -1,140 | -1,140 | 26% |
| Adjusted EBIT | 589 | 489 | 525 | -1,140 | 463 | 11% |
| Items affecting comparability1 | -40 | - 6 |
- 9 |
-78 | -132 | |
| Operating income (EBIT) | 549 | 483 | 517 | -1,218 | 331 | 8% |
| Net financial items | - | - | - | -58 | -58 | |
| Income after financial items | 549 | 483 | 517 | -1,277 | 273 |
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 1,003 | 1,214 | 1,385 | - | 3,602 | |
| Operating expenses | -629 | -733 | -984 | - | -2,346 | 65% |
| Contribution margin | 374 | 481 | 402 | - | 1,256 | 35% |
| Contribution margin, % | 37% | 40% | 29% | |||
| Global costs | - | - | - | -916 | -916 | 25% |
| Adjusted EBIT | 374 | 481 | 402 | -916 | 340 | 9% |
| Items affecting comparability1 | - | - | - | - | - | |
| Operating income (EBIT) | 374 | 481 | 402 | -916 | 340 | 9% |
| Net financial items | - | - | - | -40 | -40 | |
| Income after financial items | 374 | 481 | 402 | -956 | 300 |
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 3,707 | 4,047 | 3,991 | - | 11,745 | |
| Operating expenses | -2,229 | -2,746 | -2,656 | - | -7,631 | 65% |
| Contribution margin | 1,478 | 1,301 | 1,335 | - | 4,114 | 35% |
| Contribution margin, % | 40% | 32% | 33% | |||
| Global costs | - | - | - | -3,203 | -3,203 | 27% |
| Adjusted EBIT | 1,478 | 1,301 | 1,335 | -3,203 | 911 | 8% |
| Items affecting comparability1 | -74 | -18 | -17 | -154 | -263 | |
| Operating income (EBIT) | 1,404 | 1,283 | 1,318 | -3,357 | 647 | 6% |
| Net financial items | - | - | - | -137 | -137 | |
| Income after financial items | 1,404 | 1,283 | 1,318 | -3,495 | 510 |
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 2,941 | 3,641 | 3,726 | - | 10,309 | |
| Operating expenses | -1,824 | -2,276 | -2,560 | - | -6,660 | 65% |
| Contribution margin | 1,117 | 1,365 | 1,166 | - | 3,649 | 35% |
| Contribution margin, % | 38% | 37% | 31% | |||
| Global costs | - | - | - | -2,575 | -2,575 | 25% |
| Adjusted EBIT | 1,117 | 1,365 | 1,166 | -2,575 | 1,074 | 10% |
| Items affecting comparability1 | - | - | - | - | - | |
| Operating income (EBIT) | 1,117 | 1,365 | 1,166 | -2,575 | 1,074 | 10% |
| Net financial items | - | - | - | -106 | -106 | |
| Income after financial items | 1,117 | 1,365 | 1,166 | -2,681 | 968 | |
| 1 Items affecting comparability include mainly personnel costs and impairments of right-of-use assets attributable to the Cost-reduction Initiative w |
ithin the | |||||
| Resilience and Excellence Program. | ||||||
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 4,254 | 5,321 | 4,972 | - | 14,548 | |
| Operating expenses | -2,606 | -3,486 | -3,409 | - | -9,501 | 65% |
| Contribution margin | 1,648 | 1,835 | 1,563 | - | 5,047 | 35% |
| Contribution margin, % | 39% | 34% | 31% | |||
| Global costs | - | - | - | -3,403 | -3,403 | 23% |
| Adjusted EBIT | 1,648 | 1,835 | 1,563 | -3,403 | 1,643 | 11% |
| Items affecting comparability1 | - | - | - | - | - | |
| Operating income (EBIT) | 1,648 | 1,835 | 1,563 | -3,403 | 1,643 | 11% |
| Net financial items | - | - | - | -142 | -142 | |
| Income after financial items | 1,648 | 1,835 | 1,563 | -3,545 | 1,501 |
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 5,020 | 5,727 | 5,236 | - | 15,983 | |
| Operating expenses | -3,011 | -3,956 | -3,505 | - | -10,472 | 66% |
| Contribution margin | 2,009 | 1,771 | 1,732 | - | 5,512 | 34% |
| Contribution margin, % | 40% | 31% | 33% | |||
| Global costs | - | - | - | -4,031 | -4,031 | 25% |
| Adjusted EBIT | 2,009 | 1,771 | 1,732 | -4,031 | 1,480 | 9% |
| Items affecting comparability1 | -74 | -18 | -17 | -154 | -263 | |
| Operating income (EBIT) | 1,935 | 1,753 | 1,715 | -4,186 | 1,217 | 8% |
| Net financial items | - | - | - | -173 | -173 | |
| Income after financial items | 1,935 | 1,753 | 1,715 | -4,359 | 1,044 | |
| 1 Items affecting comparability include mainly personnel costs and impairments of right-of-use assets attributable to the Cost-reduction Initiative w |
ithin the | |||||
| Resilience and Excellence Program. |
| SEK M | Americas | EMEA | APAC | Group total |
|---|---|---|---|---|
| Solutions | 610 | 936 | 1,082 | 2,628 |
| Service | 732 | 588 | 389 | 1,709 |
| Total | 1,342 | 1,524 | 1,471 | 4,337 |
| SEK M | Americas | EMEA | APAC | Group total |
|---|---|---|---|---|
| Solutions | 396 | 679 | 1,034 | 2,109 |
| Service | 606 | 535 | 352 | 1,494 |
| Total | 1,003 | 1,214 | 1,385 | 3,602 |
| SEK M | Americas | EMEA | APAC | Group total |
|---|---|---|---|---|
| Solutions | 1,522 | 2,299 | 2,835 | 6,656 |
| Service | 2,185 | 1,748 | 1,157 | 5,089 |
| Total | 3,707 | 4,047 | 3,991 | 11,745 |
| SEK M | Americas | EMEA | APAC | Group total |
|---|---|---|---|---|
| Solutions | 1,166 | 2,100 | 2,729 | 5,994 |
| Service | 1,776 | 1,542 | 998 | 4,315 |
| Total | 2,941 | 3,641 | 3,726 | 10,309 |
| SEK M | Americas | EMEA | APAC | Group total |
|---|---|---|---|---|
| Solutions | 1,819 | 3,221 | 3,612 | 8,652 |
| Service | 2,435 | 2,100 | 1,360 | 5,896 |
| Total | 4,254 | 5,321 | 4,972 | 14,548 |
| SEK M | Americas | EMEA | APAC | Group total |
|---|---|---|---|---|
| Solutions | 2,176 | 3,421 | 3,717 | 9,314 |
| Service | 2,844 | 2,306 | 1,519 | 6,669 |
| Total | 5,020 | 5,727 | 5,236 | 15,983 |
Net sales from Solutions is taken point at time, net sales from Service is taken over time.
The table below shows the fair value of the Group's financial instruments, for which fair value is different than carrying value. The fair value of all other financial instruments is assumed to correspond to the carrying value.
| Jan 31, 2023 | Jan 31, 2022 | Apr 30, 2022 | ||||
|---|---|---|---|---|---|---|
| SEK M | Carrying amount |
Fair value |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
| Long-term interest-bearing liabilities | 4,152 | 4,211 | 4,625 | 4,856 | 4,099 | 4,251 |
| Short-term interest-bearing liabilities | 512 | 515 | 1,446 | 1,448 | 510 | 514 |
The Group's financial assets and financial liabilities, which have been measured at fair value, have been categorized in the fair value hierarchy. The different levels are defined as follows:
Level 1: Quoted prices on an active market for identical assets or liabilities
Level 2: Other observable data than quoted prices included in Level 1, either directly (that is, price quotations) or indirectly (that is, obtained from price quotations)
Level 3: Data not based on observable market data
| SEK M | Level | Jan 31, 2023 | Jan 31, 2022 | Apr 30, 2022 |
|---|---|---|---|---|
| FINANCIAL ASSETS | ||||
| Financial assets measured at fair value through income | ||||
| statement: | ||||
| Derivative financial instruments – non-hedge accounting | 2 | 17 | 38 | 16 |
| Short-term investments classified as cash equivalents | 1 | 3 | 842 | 3 |
| Financial assets measured at fair value through other | ||||
| comprehensive income: | ||||
| Equity instruments | 1 | - | 58 | - |
| Equity instruments | 3 | 0 | - | 15 |
| Derivatives used for hedging purposes: | ||||
| Derivative financial instruments – hedge accounting | 2 | 141 | 230 | 135 |
| Total financial assets | 161 | 1,168 | 168 | |
| FINANCIAL LIABILITIES | ||||
| Financial liabilities at fair value through income statement: | ||||
| Derivative financial instruments – non-hedge accounting | 2 | 11 | 97 | 55 |
| Contingent considerations | 3 | 21 | 72 | 32 |
| Derivatives used for hedging purposes: | ||||
| Derivative financial instruments – hedge accounting | 2 | 286 | 352 | 384 |
| Total financial liabilities | 318 | 521 | 471 |
The fair value of accounts receivables, other current and non-current receivables, cash and cash equivalents, accounts payable and other current and non-current liabilities is estimated to be equal to their carrying amount.
| Full year | May - Jan | ||||||
|---|---|---|---|---|---|---|---|
| 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2021/22 | 2022/23 | |
| Gross order intake, SEK M | 14,493 | 16,796 | 17,735 | 17,411 | 18,364 | 12,467 | 13,785 |
| Net sales, SEK M | 11,573 | 13,555 | 14,601 | 13,763 | 14,548 | 10,309 | 11,745 |
| Order backlog, SEK M | 27,974 | 32,003 | 34,689 | 33,293 | 39,656 | 37,552 | 42,904 |
| Gross margin, % | 43.7 | 41.9 | 42.0 | 40.8 | 37.4 | 37.5 | 37.6 |
| Adjusted gross margin, % | 43.7 | 41.9 | 42.0 | 40.8 | 37.4 | 37.5 | 38.2 |
| Operating income, SEK M | 1,845 | 1,696 | 1,657 | 1,906 | 1,643 | 1,074 | 647 |
| Operating margin, % | 15.9 | 12.5 | 11.3 | 13.9 | 11.3 | 10.4 | 5.5 |
| Adjusted EBIT | 1,845 | 1,696 | 1,657 | 1,906 | 1,643 | 1,074 | 911 |
| Adjusted EBIT margin, % | 15.9 | 12.5 | 11.3 | 13.9 | 11.3 | 10.4 | 7.8 |
| Shareholders' equity, SEK M 1 | 6,987 | 7,779 | 8,113 | 8,197 | 8,913 | 8,950 | 9,625 |
| Return on shareholders' equity, % | 22 | 17 | 14 | 16 | 14 | 13 | 9 |
| Net debt, SEK M | 803 | 439 | 1,632 | 774 | 1,532 | 1,705 | 3,447 |
| Operational cash conversion, % | 95 | 61 | 35 | 82 | 69 | 44 | - 2 |
| Average number of employees | 3,702 | 3,798 | 4,117 | 4,194 | 4,631 | 4,591 | 4,614 |
1 Attributable to Parent Company shareholders.
| Full year | May - Jan | ||||||
|---|---|---|---|---|---|---|---|
| 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2021/22 | 2022/23 | |
| Earnings per share | |||||||
| before dilution, SEK | 3.53 | 3.14 | 2.84 | 3.28 | 3.02 | 1.93 | 1.04 |
| after dilution, SEK | 3.53 | 3.14 | 2.84 | 3.28 | 3.02 | 1.93 | 1.04 |
| Adjusted earnings per share | |||||||
| before dilution, SEK | 3.53 | 3.14 | 2.84 | 3.28 | 3.02 | 1.93 | 1.58 |
| after dilution, SEK | 3.53 | 3.14 | 2.84 | 3.28 | 3.02 | 1.93 | 1.58 |
| Cash flow per share | |||||||
| before dilution, SEK | 3.79 | 2.48 | -0.74 | 5.07 | 0.55 | -0.84 | -3.17 |
| after dilution, SEK | 3.79 | 2.48 | -0.74 | 5.07 | 0.55 | -0.84 | -3.17 |
| Shareholders' equity per share | |||||||
| before dilution, SEK | 18.29 | 20.36 | 21.23 | 21.45 | 23.33 | 23.42 | 25.19 |
| after dilution, SEK | 18.29 | 20.36 | 21.23 | 21.45 | 23.33 | 23.42 | 25.18 |
| Average number of shares | |||||||
| before dilution, thousands | 382,027 | 382,027 | 382,062 | 382,083 | 382,083 | 382,083 | 382,083 |
| after dilution, thousands | 382,027 | 382,027 | 382,062 | 382,083 | 382,083 | 382,083 | 382,229 |
| Number of shares at closing 1 | |||||||
| before dilution, thousands | 382,027 | 382,027 | 382,083 | 382,083 | 382,083 | 382,083 | 382,083 |
| after dilution, thousands | 382,027 | 382,027 | 382,083 | 382,083 | 382,083 | 382,083 | 382,364 |
1 Number of registered shares at closing excluding treasury shares (1,485,289 per January 31, 2023).
| 2020/21 | 2021/22 | 2022/23 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK M | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
| Gross order intake | 3,954 | 5,379 | 3,980 | 4,045 | 4,441 | 5,897 | 3,871 | 4,598 | 5,316 |
| Net sales | 3,581 | 3,667 | 3,009 | 3,697 | 3,602 | 4,239 | 3,327 | 4,081 | 4,337 |
| Operating income | 468 | 545 | 201 | 533 | 340 | 570 | 117 | 199 | 331 |
| Cash flow from operating activities |
690 | 1,114 | -81 | 325 | 573 | 1,040 | -198 | -55 | 225 |
| 2020/21 | 2021/22 | 2022/23 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| % | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
| Americas | 41 | 13 | - 7 |
16 | - 3 |
- 6 |
-43 | -13 | 3 |
| EMEA | -17 | 7 | 0 | 3 | 23 | 16 | 11 | - 9 |
0 |
| APAC | 8 | 46 | - 4 |
19 | - 3 |
- 5 |
9 | 2 | 27 |
| Group | 2 | 18 | - 4 |
12 | 8 | 2 | -11 | - 6 |
9 |
| Q3 | First nine months | 12 months | ||||
|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 | RTM | 2021/22 |
| R&D, net | 191 | 185 | 646 | 440 | 881 | 675 |
| Capitalization | 314 | 295 | 988 | 808 | 1338 | 1,157 |
| Amortization | -123 | -109 | -342 | -368 | -456 | -482 |
| Other, net | - 3 |
- 3 |
-10 | - 5 |
- 7 |
- 2 |
| Total, net | 187 | 182 | 636 | 435 | 874 | 673 |
Alternative Performance Measures (APMs) are measures and key figures that Elekta's management and other stakeholders use when managing and analyzing Elekta's business performance. These measures are not substitutes, but rather supplements to financial reporting measures prepared in accordance with IFRS. Key figures and other APMs used by Elekta are defined on ir.elekta.com/investors/financials. Definitions and additional information on APMs can also be found on pages 155-157 in the Annual Report 2021/22.
Elekta's order intake and sales are, to a large extent, reported in subsidiaries with other functional currencies than SEK, which is the group reporting currency. In order to present order and sales growth on a more comparable basis and to show the impact of currency fluctuations, order and sales growth based on constant exchange rates are presented. The schedules below present growth based on constant exchange rates reconciled to the total growth reported in accordance with IFRS.
| Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| Americas | EMEA | APAC | total | |||||
| % | SEK M | % | SEK M | % | SEK M | % | SEK M | |
| Q3 2022/23 vs. Q3 2021/22 | ||||||||
| Change based on constant exchange rates | 3 | 36 | 0 | 3 | 27 | 359 | 9 | 398 |
| Currency effects | 18 | 184 | 6 | 127 | 13 | 166 | 11 | 477 |
| Reported change | 21 | 220 | 6 | 130 | 40 | 524 | 20 | 875 |
| Q3 2021/22 vs. Q3 2020/21 | ||||||||
| Change based on constant exchange rates | - 3 |
-27 | 23 | 395 | - 3 |
-42 | 8 | 325 |
| Currency effects | 9 | 87 | 0 | 7 | 5 | 68 | 4 | 162 |
| Reported change | 6 | 60 | 24 | 402 | 2 | 26 | 12 | 488 |
| May - Jan 2022/23 vs. May - Jan 2021/22 | ||||||||
| Change based on constant exchange rates | -21 | -743 | 1 | 28 | 12 | 503 | - 2 |
-212 |
| Currency effects | 16 | 558 | 8 | 367 | 15 | 605 | 12 | 1,530 |
| Reported change | - 5 |
-185 | 8 | 395 | 27 | 1,108 | 11 | 1,318 |
| May - Jan 2021/22 vs. May - Jan 2020/21 | ||||||||
| Change based on constant exchange rates | 0 | - 8 |
10 | 442 | 4 | 143 | 5 | 577 |
| Currency effects | - 1 |
-34 | - 2 |
-89 | - 1 |
-20 | - 1 |
-142 |
| Reported change | - 1 |
-42 | 8 | 353 | 3 | 123 | 4 | 435 |
| Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| Americas | EMEA | APAC | total | |||||
| % | SEK M | % | SEK M | % | SEK M | % | SEK M | |
| Q3 2022/23 vs. Q3 2021/22 | ||||||||
| Change based on constant exchange rates | 15 | 151 | 16 | 192 | -3 | -41 | 8 | 301 |
| Currency effects | 19 | 188 | 10 | 118 | 9 | 127 | 12 | 434 |
| Reported change | 34 | 339 | 26 | 310 | 6 | 85 | 20 | 735 |
| Q3 2021/22 vs. Q3 2020/21 | ||||||||
| Change based on constant exchange rates | -2 | -18 | -4 | -46 | -2 | -34 | -3 | -98 |
| Currency effects | 6 | 62 | 1 | 12 | 3 | 44 | 3 | 119 |
| Reported change | 5 | 44 | -3 | -34 | 1 | 11 | 1 | 21 |
| May - Jan 2022/23 vs. May - Jan 2021/22 | ||||||||
| Change based on constant exchange rates | 6 | 171 | 4 | 156 | -3 | -120 | 2 | 207 |
| Currency effects | 20 | 595 | 7 | 250 | 10 | 384 | 12 | 1,229 |
| Reported change | 26 | 765 | 11 | 406 | 7 | 264 | 14 | 1,436 |
| May - Jan 2021/22 vs. May - Jan 2020/21 | ||||||||
| Change based on constant exchange rates | 6 | 161 | 3 | 100 | 3 | 122 | 4 | 383 |
| Currency effects | -1 | -29 | -2 | -76 | -2 | -65 | -2 | -170 |
| Reported change | 5 | 131 | 1 | 24 | 2 | 58 | 2 | 213 |
Management reviews the development of expenses excluding items affecting comparability in constant currencies. The schedule below illustrates the reported change in expenses related to items affecting comparability and the remaining change split between change based on constant exchange rates and change due to currency movements.
| Change expenses | |||||||
|---|---|---|---|---|---|---|---|
| % | SEK M | % | SEK M | % | SEK M | % | SEK M |
| 5 | 18 | 28 | 86 | 5 | 16 | 12 | 120 |
| 1 | 4 | -2 | -5 | -4 | -14 | -1 | -15 |
| 8 | 28 | 11 | 32 | 7 | 22 | 8 | 82 |
| 15 | 50 | 37 | 113 | 7 | 25 | 19 | 188 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 19 | 53 | 14 | 36 | -16 | -59 | 3 | 30 |
| 3 | 10 | 5 | 12 | 5 | 20 | 5 | 41 |
| 22 | 63 | 19 | 48 | -10 | -39 | 8 | 72 |
| 4 | 43 | 12 | 105 | 5 | 51 | 7 | 199 |
| 10 | 93 | 2 | 16 | -7 | -71 | 1 | 39 |
| 10 | 93 | 10 | 88 | 9 | 92 | 9 | 273 |
| 24 | 229 | 24 | 209 | 7 | 72 | 18 | 511 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 19 | 154 | 7 | 60 | -10 | -109 | 4 | 104 |
| -1 | -8 | 1 | 10 | 1 | 8 | 0 | 10 |
| 18 | 145 | 9 | 70 | -9 | -101 | 4 | 114 |
| Selling expenses | Administrative expenses |
R&D expenses |
EBITDA is used for the calculation of operational cash conversion and the net debt/EBITDA ratio.
| SEK M | Q3 2021/22 | Q4 2021/22 | Q1 2022/23 | Q2 2022/23 | Q3 2022/23 |
|---|---|---|---|---|---|
| Operating income/EBIT | 340 | 570 | 117 | 199 | 331 |
| Amortization intangible assets: | |||||
| Capitalized development costs | 113 | 119 | 113 | 114 | 127 |
| Assets relating business combinations | 32 | 33 | 35 | 36 | 36 |
| Depreciation tangible assets | 106 | 112 | 114 | 117 | 112 |
| Impairment of right-of-use assets | - | - | - | - | 78 |
| EBITDA | 591 | 833 | 379 | 465 | 684 |
Return on capital employed is a measure of the profitability after taking into account the amount of total capital used unrelated to type of financing. A higher return on capital employed indicates a more efficient use of capital. Capital employed represents the value of the balance sheet net assets that is the key driver of cash flow and capital required to run the business. It is also used in the calculation of return on capital employed.
| SEK M | Jan 31, 2022 | Apr 30, 2022 | Jul 31, 2022 | Oct 31, 2022 | Jan 31, 2023 |
|---|---|---|---|---|---|
| Income after financial items (12 months rolling) | 1,405 | 1,501 | 1,414 | 1,071 | 1,044 |
| Financial expenses (12 months rolling) | 238 | 200 | 211 | 230 | 257 |
| Income after financial items plus financial expenses | 1,644 | 1,702 | 1,625 | 1,301 | 1,301 |
| Total assets | 27,577 | 26,303 | 26,322 | 27,225 | 27,971 |
| Deferred tax liabilities | -443 | -549 | -483 | -503 | -487 |
| Long-term provisions | -235 | -215 | -207 | -199 | -234 |
| Other long-term liabilities | -144 | -120 | -133 | -151 | -62 |
| Accounts payable | -1,187 | -1,352 | -1,280 | -1,464 | -1,390 |
| Advances from customers | -4,267 | -4,161 | -4,392 | -4,686 | -4,924 |
| Prepaid income | -2,238 | -2,342 | -2,373 | -2,335 | -2,416 |
| Accrued expenses | -1,754 | -1,901 | -1,606 | -1,835 | -1,937 |
| Current tax liabilities | -277 | -114 | -164 | -100 | -218 |
| Short-term provisions | -187 | -149 | -142 | -200 | -180 |
| Derivative financial instruments | -351 | -361 | -395 | -516 | -275 |
| Other current liabilities | -365 | -429 | -367 | -395 | -581 |
| Capital employed | 16,129 | 14,610 | 14,781 | 14,840 | 15,267 |
| Average capital employed (last five quarters) | 14,722 | 14,638 | 14,638 | 14,828 | 15,126 |
| Return on capital employed | 11% | 12% | 11% | 9% | 9% |
Return on shareholders' equity measures the return generated on shareholders' capital invested in the company.
| SEK M | Q3 2021/22 | Q4 2021/22 | Q1 2022/23 | Q2 2022/23 | Q3 2022/23 |
|---|---|---|---|---|---|
| Net income (12 months rolling) | 1,079 | 1,154 | 1,087 | 826 | 813 |
| Average shareholders' equity excluding | |||||
| non-controlling interests a (last five quarters) | 8,375 | 8,515 | 8,529 | 8,842 | 9,139 |
| Return on shareholders' equity | 13% | 14% | 13% | 9% | 9% |
Cash flow is a focus area for management. The operational cash conversion shows the relation between cash flow from operating activities and EBITDA.
| from operating activities and EBITDA. | |||||
|---|---|---|---|---|---|
| SEK M | Q3 2021/22 | Q4 2021/22 | Q1 2022/23 | Q2 2022/23 | Q3 2022/23 |
| Cash flow from operating activities |
573 | 1,040 | -198 | -55 | 225 |
| EBITDA | 591 | 833 | 379 | 465 | 684 |
| Operational cash conversion | 97% | 125% | -52% | -12% | 33% |
In order to optimize cash generation, management focuses on working capital and reducing lead times between orders booked and cash received.
| Jan 31 | Jan 31 | Apr 30 | |
|---|---|---|---|
| SEK M | 2023 | 2022 | 2022 |
| Working capital assets | |||
| Inventories | 3,337 | 2,743 | 2,533 |
| Accounts receivable | 4,239 | 3,719 | 3,647 |
| Accrued income | 2,287 | 1,720 | 1,796 |
| Other operating receivables | 1,761 | 1,430 | 1,459 |
| Sum working capital assets | 11,624 | 9,611 | 9,435 |
| Working capital liabilities | |||
| Accounts payable | 1,390 | 1,187 | 1,352 |
| Advances from customers | 4,924 | 4,267 | 4,161 |
| Prepaid income | 2,416 | 2,238 | 2,342 |
| Accrued expenses | 1,937 | 1,754 | 1,901 |
| Short-term provisions | 180 | 187 | 149 |
| Other current liabilities | 581 | 365 | 429 |
| Sum working capital liabilities | 11,428 | 9,998 | 10,333 |
| Net working capital | 196 | -387 | -898 |
| % of rolling 12 months net sales | 1% | -3% | -6% |
Days Sales Outstanding was negative 19 days on January 31, 2023 (negative 27 days per April 30, 2022).
| Jan 31 | Jan 31 | Apr 30 | |
|---|---|---|---|
| SEK M | 2023 | 2022 | 2022 |
| Americas | -56 | -81 | -66 |
| EMEA | 56 | 39 | 39 |
| APAC | -55 | -49 | -57 |
| Group | -19 | -28 | -27 |
Net debt is important for understanding the financial stability of the company. Net debt and net debt/EBITDA ratio are used by management to track the debt evolvement, the refinancing need and the leverage for the Group.
| Jan 31, 2022 | Apr 30, 2022 | Jul 31, 2022 | Oct 31, 2022 | Jan 31, 2023 |
|---|---|---|---|---|
| 4,625 | 4,099 | 4,112 | 4,138 | 4,152 |
| 1,446 | 510 | 528 | 531 | 512 |
| -4,366 | -3,077 | -2,423 | -1,535 | -1,218 |
| 1,705 | 1,532 | 2,217 | 3,134 | 3,447 |
| 2,703 | 2,682 | 2,582 | 2,268 | 2,361 |
| 0.63 | 0.57 | 0.86 | 1.38 | 1.46 |
Items affecting comparability include cost attributable to the Cost-reduction Initiative within the Resilience and Excellence Program. The costs are adjusted in order to track the underlying profitability of the Group's products and services.
| SEK M | Americas | EMEA | APAC | Other / Group-wide |
Group total |
|---|---|---|---|---|---|
| Items affecting comparability: | |||||
| Personnel related cost | 4 | 6 | 1 | 41 | 52 |
| Impairment of right-of-use assets | 36 | 0 | 7 | 34 | 78 |
| Other cost | 0 | 0 | 0 | 3 | 3 |
| Total | 40 | 6 | 9 | 78 | 132 |
| SEK M | Americas | EMEA | APAC | Other / Group-wide |
Group total |
|---|---|---|---|---|---|
| Items affecting comparability: | |||||
| Personnel related cost | 37 | 17 | 10 | 116 | 181 |
| Impairment of right-of-use assets | 36 | 1 | 7 | 34 | 79 |
| Other cost | 0 | 0 | 0 | 3 | 3 |
| Total | 74 | 18 | 17 | 154 | 263 |
Gross margin is used to track operational performance and efficiency.
| Q3 | First nine months | |||
|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 |
| Net sales | 4,337 | 3,602 | 11,745 | 10,309 |
| Cost of products sold | -2,686 | -2,279 | -7,326 | -6,443 |
| Gross income | 1,652 | 1,323 | 4,419 | 3,866 |
| Gross margin (Gross income/ Net sales) | 38.1% | 36.7% | 37.6% | 37.5% |
Adjusted gross margin is used to track the underlying operational performance, i.e. excluding items affecting comparability.
| Q3 | First nine months | |||
|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 |
| Net sales | 4,337 | 3,602 | 11,745 | 10,309 |
| Cost of products sold | -2,686 | -2,279 | -7,326 | -6,443 |
| Gross income | 1,652 | 1,323 | 4,419 | 3,866 |
| Items affecting comparability | 12 | 0 | 64 | 0 |
| Adjusted gross income | 1,664 | 1,323 | 4,483 | 3,866 |
| Adjusted gross margin (Adjusted gross income/ Net sales) | 38.4% | 36.7% | 38.2% | 37.5% |
Adjusted EBIT is used to track the underlying operational performance, i.e. excluding items affecting comparability.
| SEK M | Americas | EMEA | APAC | Other / Group-wide |
Group total |
|---|---|---|---|---|---|
| Operating Income (EBIT) | 549 | 483 | 517 | -1,218 | 331 |
| Items affecting comparability | 40 | 6 | 9 | 78 | 132 |
| Adjusted EBIT | 589 | 489 | 525 | -1,140 | 463 |
| SEK M | Americas | EMEA | APAC | Other / Group-wide |
Group total |
|---|---|---|---|---|---|
| Operating Income (EBIT) | 1,404 | 1,283 | 1,318 | -3,357 | 647 |
| Items affecting comparability | 74 | 18 | 17 | 154 | 263 |
| Adjusted EBIT | 1,478 | 1,301 | 1,335 | -3,203 | 911 |
Adjusted earnings per share is used to track the underlying operational performance, i.e. excluding items affecting comparability.
| Q3 | First nine months | |||
|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 |
| Net income for the period attributable to: | ||||
| Parent Company shareholders | 216 | 229 | 397 | 738 |
| Items affecting comparability | 132 | 0 | 263 | 0 |
| Tax on Items affecting comparability | -29 | 0 | -58 | 0 |
| Adjusted net income | 319 | 229 | 603 | 738 |
| Average number of shares, before dilution | 382 | 382 | 382 | 382 |
| Average number of shares, after dilution | 382 | 382 | 382 | 382 |
| Adjusted earnings per share before dilution 1) | 0,84 | 0,60 | 1,58 | 1,93 |
| Adjusted earnings per share after dilution 2) | 0,83 | 0,60 | 1,58 | 1,93 |
| 1 ) Adjusted net income/average number of shares before dilution |
2 ) Adjusted net income/average number of shares after dilution
Adjusted R&D expenditure of net sales is used to track the amount spent on R&D in relation to net sales during the period, excluding items affecting comparability.
| Q3 | First nine months | 12 Months | ||||
|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 | RTM | 2021/22 |
| R&D expenditure | -364 | -339 | -1,113 | -1,040 | -1,444 | -1,372 |
| R&D items affecting comparability | 16 | 0 | 51 | 0 | 51 | 0 |
| R&D capitalization | -314 | -295 | -988 | -808 | -1,338 | -1,157 |
| R&D amortization | 123 | 109 | 342 | 368 | 456 | 482 |
| Adjusted R&D Expenditure | -539 | -525 | -1,707 | -1,480 | -2,274 | -2,047 |
| Net Sales | 4,337 | 3,602 | 11,745 | 10,309 | 15,983 | 14,548 |
| Adjusted R&D Expenditure of net sales | 12% | 15% | 15% | 14% | 14% | 14% |
Elekta will host a web conference at 10:00-11:00 CET on February 24 with President and CEO Gustaf Salford, and CFO Tobias Hägglöv. To take part of the presentation please dial the numbers or watch via the web link below.
| Sweden: | +46 8 5051 0031 |
|---|---|
| United Kingdom: +44 207 107 0613 | |
| United States: | +1 631 570 5613 |
https://elekta-qreports.creo.se/230224/
| Year-end report, Q4, May-Apr 2022/23 | May 25, 2023 |
|---|---|
| Annual Report 2022/23 | Jul 7, 2023 |
| Interim report, Q1, May-Jul 2023/24 | Aug 24, 2023 |
| Annual General Meeting 2023 | Aug 24, 2023 |
| Interim report, Q2, May-Oct 2023/24 | Nov 30, 2023 |
Elekta is a global leader in radiotherapy solutions to fight cancer and neurological diseases. In fact, we are the only independent radiotherapy provider of scale. We have a broad offering of advanced solutions for delivering the most efficient radiotherapy treatments. Elekta's offering allows clinicians to treat more patients with increased quality, both with value-creating innovations in solutions and AI-supported service based on a global network.
Elekta's purpose is to inspire hope for anyone dealing with cancer, be that patients, clinicians, or relatives.
Our mission is to improve patients' lives by working together with our customers. We use our precision radiation expertise to work hand in hand with clinicians and our partners to continuously develop innovative, outcome-driven and cost-efficient solutions that provide lasting clinical difference in a sustainable way.
Elekta's vision is a world where everyone has access to the best cancer care. Our strategy, called ACCESS 2025, is the first part of our journey towards the vision.
Through our strategy, ACCESS 2025, we improve patient access to the best cancer care by:
CFO +46 76 107 4799 [email protected]
Head of Investor Relations +46 76 611 7625 [email protected]
Elekta AB (publ) 556170-4015
Kungstensgatan 18 Box 7593 SE 103 93 Stockholm Sweden
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