Elekta

Earnings Release • May 25, 2022

Q4

Fourth quarter Full year

• Gross order intake amounted to SEK 5,897 M (5,379), corresponding to a 2 percent increase in constant exchange rates
• Net sales were SEK 4,239 M (3,667), corresponding to a 5 percent increase in constant exchange rates
• Gross margin amounted to 37.0 percent (38.5)
• EBIT amounted to SEK 570 M (545), corresponding to an EBIT margin of 13.4 percent (14.9)
• Earnings per share was SEK 1.09 (0.89) before/after dilution

• Cash flow after continuous investments amounted to SEK 623 M (818)

• Gross order intake amounted to SEK 18,364 M (17,411), corresponding to a 4 percent growth in constant exchange rates

• Net sales were SEK 14,548 M (13,763), corresponding to a 4 percent increase in constant exchange rates
• Gross margin amounted to 37.4 percent (40.8)
• EBIT amounted to SEK 1,643 M (1,906), corresponding to an EBIT margin of 11.3 percent (13.9)
• Earnings per share was SEK 3.02 (3.28) before/after dilution
• Cash flow after continuous investments amounted to SEK 450 M (1,706)

Significant events after the quarter

• The Board of Directors proposes a dividend of SEK 2.40 (2.20) per share (paid in two installments) for the fiscal year 2021/22
• On May 6, Elekta launched new radiosurgery system: Elekta Esprit

Group summary

Q4			Full-year
2021/22	2020/21	Δ	2021/22	2020/21	Δ
5,897	5,379	2% 3	18,364	17,411
4,239	3,667	5% 3	14,548	13,763
37.0%	38.5%	-1.5 ppts	37.4%	40.8%	-3.4 ppts
570	545	4%	1,643	1,906	-14%
13.4%	14.9%	-1.5 ppts	11.3%	13.9%	-2.6 ppts
623	818	-24%	450	1,706	-74%
1.09	0.89	22%	3.02	3.28	-8%
						4% 3 4% 3

¹ After continuous investments.

² Before/after dilution.

³ Based on constant exchange rates.

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 May 25, 2022. (REGMAR)

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.

Fourth quarter

Back to growth with a strong finish of the quarter

The strong demand for radiotherapy solutions continued in the fourth quarter and installation volumes came in higher than last year driving revenue growth and sequential margin improvements. We also continued to form important partnerships across the cancer care ecosystem. I am proud that we have delivered order and revenue growth for the full year despite the pandemic and recent geopoliticalrelated challenges.

Strong continued demand for cancer care

The increased adoption of and access to radiotherapy is key for dealing with the alarming cancer backlog many countries are experiencing. During the quarter we started to see larger recovery programs in Europe translating in orders. Overall, I am pleased to report order growth in a quarter with challenging comparison, and for the full year we increased revenue and our order intake.

The constraints in global supply chains continued, now also impacted by the war in Ukraine and lockdowns in China. However, we were able to drive higher installation volumes than last year, with a strong finish of the quarter. Revenue grew by 5 percent, showing that many countries are focusing on adding radiotherapy capacity even under difficult circumstances. We are also delivering on our plan to give 300 million people access to better cancer care before 2024/25. This year we installed linacs in underserved markets giving access to more than 60 million people.

Our margins improved from the low levels in the third quarter but are still below last year's levels due to inflation including higher component prices and an unfavorable product mix. To continue with our margin expansion, we are focused on our Resilience and Excellence Program, driving cost measures and productivity initiatives through digitalization and new ways of working.

Forming partnerships and accelerating innovation

During the quarter we have also announced commercial partnerships, with IBA to optimize quality assurance (QA) solutions, and with GE Healthcare to enable us to provide hospitals with a comprehensive offering across imaging and treatment for cancer patients requiring radiation therapy. We also formed strong customer partnerships. A key highlight was the 10-year agreement with the leading Netherlands Cancer Institute (AVL/NKI), focusing on co-creating adaptive and personalized workflows and treatment delivery advancements.

Over the last years we have accelerated our innovation investments to support long-term growth and margin expansion, resulting in product launches of versatile solutions across our portfolio. The latest example is the new Leksell Gamma Knife platform Esprit, which we launched at ESTRO and which I am especially pleased to present in the same year as Elekta celebrates 50 years.

Looking forward

For the first quarter 2022/23 we do not see a change in the macro environment with continued inflation and supply chain challenges impacting our installations, costs and margins.

I would like to thank all Elekta employees and partners, for doing a fantastic job in servicing our customers and their patients during another challenging year.

Gustaf Salford President and CEO

Launch of Esprit our latest Leksell Gamma Knife platform

5% revenue growth

Fourth quarter Order intake and order backlog

The positive order growth continued in the fourth quarter despite the increased uncertainty due to the changing geopolitical situation with the war in Europe. And even though the restrictions from the pandemic were gradually lifted in most parts of the world there were still local Covid lockdowns in China. In the fourth quarter order intake in constant exchange rates increased by 2 percent compared to a strong quarter last year. The emerging markets drove this growth, whereas the mature markets had a softer quarter. From a product perspective both linacs and MR-Linacs had a strong quarter. In total more than 120 MR-Linacs have been ordered since its launch.

Order backlog increased both in SEK and based on constant exchange rates, and amounted to SEK 39,656 M, compared to SEK 33,293 M on April 30, 2021. The positive translation effect due to the conversion to closing exchange rates amounted to SEK 3,763 M.

Gross order intake

	Q4		Full-year
SEK M		2021/22 2020/21	1 Δ	Δ		2021/22 2020/21	1 Δ	Δ
Americas	1,980	1,947	-6%	2%	5,570	5,579	-2%	0%
EMEA	2,368	1,909	16%	24%	7,165	6,353	12%	13%
APAC	1,549	1,523	-5%	2%	5,628	5,479	1%	3%
Group	5,897	5,379	2%	10%	18,364	17,411	4% 2	5%

¹ Based on constant exchange rates.

² Excluding the largest deal ever in Elekta's history the growth rate was 8%.

North and South America (Americas)

In the Americas, the reported order intake decreased by 6 percent during the fourth quarter based on constant exchange rates. The Americas faced tough comparables and even if the pandemic is easing there are still delays in cancer diagnosis. The financial impact from exchange rates and the economics in the South American markets delayed customers' order decisions. Canada continued to show good order growth for the fourth consecutive quarter and positive development was also seen in some Latin American countries such as Venezuela and Mexico.

Europe, Middle East and Africa (EMEA)

EMEA had a strong order growth of 16 percent based on constant exchange rates. The first orders from regional Spanish hospitals based on the large public tender closed in the beginning of the calendar year reached the order book and boosted the Spanish order intake in the quarter. The Middle East and Africa continued to grow strongly. The success of Elekta's geographic expansion strategy continued as Egypt and Turkey remained the main growth drivers of the region.

Asia Pacific (APAC)

Order intake in APAC decreased by 5 percent based on constant exchange rates and was driven by weaker markets in some countries as medical tourism is only slowly resuming. In China, Elekta continued its market leading position, though order intake was somewhat softer than last year due to an overall market contraction. The strong order growth in Australia continued, and the Philippines, where Elekta opened its latest sales office, showed good growth in the quarter.

Gross order intake Group

Gross order intake Americas

Gross order intake EMEA

Gross order intake APAC

Fourth quarter Net sales

Net sales in the fourth quarter increased by 16 percent to SEK 4,239 M (3,667). Based on constant exchange rates, net sales increased by 5 percent driven by high growth in Americas and the emerging markets. Net sales were negatively impacted by the war in Ukraine and the Covid lockdowns in China. The pandemic challenges continued to have a hampering effect on installations like MR-Linac and Leksell Gamma Knife that rely on global installation teams.

Net sales per region

		Q4	Full-year
SEK M	2021/22 2020/21		1 Δ	Δ	2021/22	2020/21	1 Δ	Δ
Americas	1,313	1,079	11%	22%	4,254	3,888	7%	9%
EMEA	1,680	1,522	0%	10%	5,321	5,140	2%	4%
APAC	1,245	1,066	8%	17%	4,972	4,735	4%	5%
Group	4,239	3,667	5%	16%	14,548	13,763	4%	6%

¹ Based on constant exchange rates.

Geographically, Americas and APAC contributed with good revenue growth. Especially Americas showed strong development with double-digit growth both in North and South America. The emerging part of APAC with India and East Asia at the forefront had good growth. Development in the mature parts of APAC was mainly affected by declining revenues in Japan. China delivered double-digit growth. The installations in Europe continued at a good pace despite the challenges associated with the war in Ukraine and the Middle East and Africa had a strong upswing in the quarter.

Net sales of Solutions increased by 6 percent in constant exchange rates, with good growth in the Linac business and Brachy. At the end of the period Elekta had an installed base of approximately 6,900 devices, of which approximately 5,000 units were linacs, MR-Linacs or Leksell Gamma Knife systems. More than 60 MR-Linacs were installed or under installation at the end of the period. 46 percent of the installed base of linacs was in emerging (underserved) markets with growth of around 50 systems in the quarter.

Service grew with 4 percent based on constant exchange rates and showed growth across business lines.

Net sales per product

	Q4	Full-year
SEK M	2021/22	2020/21	1 Δ		Δ 2021/22	2020/21	1 Δ	Δ
Solutions	2,658	2,254	6%	18%	8,652	8,175	4%	6%
Service	1,581	1,413	4%	12%	5,896	5,588	5%	6%
Total	4,239	3,667	5%	16%	14,548	13,763	4%	6%

¹ Based on constant exchange rates.

6% revenue growth in Solutions

Net sales by quarter

Net sales by RTM²

² Rolling twelve months

Emerging markets were driving growth

Fourth quarter Earnings

Gross margin amounted to 37.0 percent (38.5) in the fourth quarter. The supply chain costs continued on a very high level, and the decrease was mainly explained by higher component prices and inflation of approximately 300 basis points as well as a negative impact from product and Solution-Service-mix of approximately 110 basis points. These effects were partly offset by higher sales of approximately 200 basis points and a positive impact from foreign exchange rates of approximately 60 basis points.

Operating expenses during the fourth quarter increased by 1 percent in constant exchange rates with higher selling expenses (15 percent), which were offset by lower administration costs (-1 percent) and net R&D expenditure (-11 percent). The increase in selling expenses was driven by investment in customer-related activities and provisions of SEK 18 M related to the war in Ukraine. Net R&D expenditure decreased with more projects in capitalization phases in line with accelerated investments in innovations and lower amortization from Unity. For the fiscal year 2021/22 gross R&D expenditure to net sales increased to 14 percent (11). Amortization of intangible assets and depreciation of tangible fixed assets amounted to a total of SEK 263 M (308) in the quarter. Other operating income was positively impacted by a reversed additional purchase price of SEK 48 M. Operating income, EBIT, was SEK 570 M (545), representing a margin of 13.4 percent (14.9).

Net financial items decreased to SEK -36 M (-108). The key drivers were a lower level of gross debt in this quarter and costs in connection with an early loan repayment in the comparing quarter. Income after financial items amounted to SEK 534 M (437) and tax amounted to SEK -113 M (-97), representing a tax rate of 21.1 percent (22.1). Net income amounted to SEK 421 M (341) and earnings per share amounted to SEK 1.09 (0.89) before and after dilution. Return on shareholders' equity amounted to 14 percent (16) and return on capital employed was 12 percent (12).

Cash flow

With SEK 623 M (818) the fourth quarter cash flow was weaker compared to last year due to increased continuous investments in accordance with the accelerated focus on innovations. This was partly offset by higher reduction of working capital. Investments in intangible assets amounted to SEK 375 M (218), and mainly related to R&D investments in the Linac family and software. Investments in tangible assets decreased to SEK 43 M (77).

Cash conversion in the fourth quarter was 125% and followed a normal seasonal pattern. Cash conversion in the full year was 69 percent.

Cash flow (extract)

	Q4		Full-year
SEK M	2021/22	2020/21	2021/22	2020/21
Operating cash flow	524	667	1,869	2,660
Change in w orking capital	516	447	-12	-109
Cash flow from operating
activities	1,040	1,114	1,858	2,551
Continuous investments	-418	-296	-1,408	-845
Cash flow after continuous
investments	623	818	450	1,704
EBITDA	833	853	2,682	3,110
Operational cash conversion	125%	130%	69%	82%

37.0% gross margin

14% R&D expenditure of net sales, FY 21/22

Cash Flow from operating activities

Fourth quarter Working capital

Net working capital as a percentage of annual net sales was slightly higher than one year ago with -6 percent (-7). The higher inventory level was a result of the extended supply chain lead times, and customer advances and accounts payables were higher due to the same reason. All individual working capital items were significantly impacted by currency movements, while the net effect on the total working capital from currencies was limited. For more information, see page 25.

Financial position

Cash and cash equivalents and short-term investments amounted to SEK 3,077 M (4,411). Interest-bearing liabilities excluding lease liabilities amounted to SEK 4,609 M (5,184). Net debt increased to SEK 1,532 M (774) as a result of accelerated investments in innovation. Net debt in relation to EBITDA was 0.57 (0.25). The average maturity of interest-bearing liabilities is 4.0 years.

Net debt

	Apr 30	Apr 30
SEK M	2022	2021
Long-term interest-bearing liabilities	4,099	3,043
Short-term interest-bearing liabilities	510	2,141
Cash and cash equivalents and short-term
investments	-3,077	-4,411
Net debt	1,532	774
Long-term lease liabilities	841	854
Short-term lease liabilities	245	200
Net debt including lease liabilities	2,618	1,828

The exchange rate effect from the translation of cash and cash equivalents amounted to SEK 183 M (-329). The translation difference in interest-bearing liabilities amounted to SEK 78 M (-216).

Sustainability agenda

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, Green Processes, Business Ethics and People in Focus.

Green Processes – Committed to set science-based targets

Elekta has committed to set science-based targets in accordance with climate science for the environmental footprint of the business. For this process Elekta has conducted a mapping of the direct and indirect emission impact (in C02-equivalents) following the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.

0.57 Net debt/EBITDA

Fourth quarter

Elekta's targets follow the Science-Based Targets initiative (SBTi) criteria covering Elekta's operational as well as value chain emissions. For Scope 1, which include emissions from Elekta's own operations such as facility heating and car fleet, an absolute emissions reduction of 4.2 percent annually over the next 10 years is required according to the SBTi criteria. Scope 2 includes indirect emissions from purchased energy and accordingly, a transition to 100 percent renewable electricity by 2030 is required. Scope 3 covers other indirect emissions occurring in the value chain such as logistics, business travel, supply chain emissions and the emissions produced when using Elekta's products.

Setting targets according to the SBTi criteria means that Elekta will tackle emissions across all scopes and work to align the operations with required emissions reduction rates established by climate science. Elekta's vision is a world where everyone has access to the best cancer care. We aim to align our strategic ambition with climate science to make sure we can continue working for expanding access to cancer treatments over the longer term while doing our part for the planet, and thereby meeting our sustainability targets.

Elekta will submit the suggested targets to SBTi during the first quarter of fiscal year 2022/23.

Risk and uncertainties

Elekta's presence in a large number of geographical markets exposes the Group to political and economic risks on a global scale and/or in individual countries. For more details, please see Annual Report 2020/21, page 34.

Impact from war in Ukraine

On February 24, Russia initiated an invasion of Ukraine. In fiscal year 2020/21 and the first nine-months of fiscal year 2021/22 Group revenue in Russia, Belarus and Ukraine represented about 2 percent. In the fourth quarter the war had a negative impact on Elekta's European business in terms of orders, revenue and profitability, including a provision of receivables amounting to SEK 18 M. On a global scale the war impacted the supply chain costs and prolonged lead times further. Elekta has neither production nor Tier 1 suppliers in these three countries.

Impact from Covid-19

The impact of Covid-19 eased in the fourth quarter as the restrictions were gradually lifted in most parts of the world. However, the constraints in global supply chains remained with negative effect from the lockdowns in China and inflation pressure. These constraints had a negative impact on revenue due to longer supply chain lead times and increased costs continued to put pressure on margins, which also were affected by lower installation volumes.

Elekta has maintained its strong commitment to customers and their patients by continued focus on installing new devices and servicing the installed base. Overall, Elekta has managed well through the crisis, balancing the safety of employees with the commitments to customers and their patients. The treatment utilization rate in Elekta's installed base has been maintained at normal levels. Linac production sites in Crawley, UK and Beijing, China have been fully operational as have the production facilities of Brachy in the Netherlands and Neuro in Sweden.

Fourth quarter

Elekta has not received any governmental grants in the fourth quarter. During the fiscal year 2021/22 Elekta has received governmental grants amounting to approximately SEK 10 M on a global basis and no governmental grants in Sweden.

Significant events

Fourth quarter

Elekta and GE Healthcare in collaboration

Elekta and GE Healthcare signed a global commercial collaboration agreement in radiation oncology to be able to provide hospitals a comprehensive offering across imaging and treatment for cancer patients requiring radiation therapy.

NHS to improve cancer treatment using ProKnow

National Health Service (NHS) England ordered multiple licenses for Elekta's ProKnow® software solution, which centralizes and analyzes radiotherapy data in a secure scalable platform, accessible to the NHS radiation oncology facilities throughout England.

Elekta and IBA in collaboration

Elekta entered into a collaborative agreement with IBA to optimize quality assurance (QA) solutions. Radiation therapy departments and clinics using Elekta's treatment delivery systems will benefit from QA solutions that are designed for these devices by streamlining workflows and improving access to measurement data.

Third quarter¹

• Elekta goes direct in the Philippines
• Elekta to appoint Tobias Hägglöv as CFO
• Elekta's new sustainability-linked bond oversubscribed

Second quarter¹

• Elekta establishes a framework for SLB
• Elekta receives initial investment grade rating from S&P
• Elekta acquires Turkish distributor
• Establishment of a philanthropic Elekta Foundation
• Elekta established in Indonesia
• Changes in Executive Management (Ardie Ermers new EVP Region Europe)

First quarter¹

• Elekta Harmony receives clearance by FDA
• Elekta and Philips to deepen their strategic partnership
• Changes in Executive Management (Renato Leite left Elekta)

Midterm outlook

• Net sales CAGR >7% until 2024/25
• EBIT margin % expansion until 2024/25

Dividend policy

• ≥50% of net profit for the year

Proposed dividend

• 2.40 SEK/share

¹ For more details about the previous significant events please see respective quarterly report.

Fourth quarter Legal disputes¹

No new material legal disputes, but after reassessment of the ongoing legal dispute with ZAP Surgical Systems, Inc, first communicated in April 2019, Elekta has concluded that the case should no longer be regarded as material.

Employees

The average number of employees during the period was 4,631 (4,194). The average number of employees in the Parent Company was 57 (45).

Shares

Total number of registered shares on April 30, 2022, was 383,568,409 of which 14,980,769 were A-shares and 368,587,640 B-shares. On April 30, 2022 1,485,289 shares were treasury shares held by Elekta.

Stockholm May 25, 2022

Gustaf Salford President and CEO

This report has not been reviewed by the Company's auditors

¹ The material legal disputes reported here are either new cases or previous cases with changes in the interim period. For previous reported cases please see Elekta's annual reports and previous interim reports.

Fourth quarter and full year Consolidated income statement – condensed

	Q4		Full-year
SEK M	2021/22	2020/21	2021/22	2020/21
Net sales	4,239	3,667	14,548	13,763
Cost of products sold	-2,669	-2,256	-9,111	-8,153
Gross income	1,570	1,411	5,436	5,610
Selling expenses	-380	-314	-1,355	-1,143
Administrative expenses	-309	-292	-1,173	-1,086
R&D expenses	-331	-344	-1,372	-1,486
Other operating income and expenses	29	-12	-48	-85
Exchange rate differences	- 9	97	155	97
Operating income	570	545	1,643	1,906
Financial items, net	-36	-108	-142	-277
Income after financial items	534	437	1,501	1,630
Income tax	-113	-97	-345	-377
Net income for the period	421	341	1,157	1,253
Net income for the period attributable to:
Parent Company shareholders	415	341	1,154	1,254
Non-controlling interests	6	0	3	- 1
Average number of shares
Before dilution, millions	382	382	382	382
After dilution, millions	382	382	382	382
Earnings per share
Before dilution, SEK	1.09	0.89	3.02	3.28
After dilution, SEK	1.09	0.89	3.02	3.28

Consolidated statement of comprehensive income

	Q4		Full-year
SEK M	2021/22	2020/21	2021/22	2020/21
Net income for the period	421	341	1,157	1,253
Other comprehensive income:
Items that will not be reclassified to the income statement:
Remeasurements of defined benefit pension plans	17	- 3	27	- 3
Change in fair value of equity instruments	-44	- 6	-45	206
Tax	5	3	2	-43
Total items that will not be reclassified to the income
statement	-22	- 6	-16	160
Items that subsequently may be reclassified to the income
statement:
Revaluation of cash flow hedges	-127	-52	-448	231
Translation differences from foreign operations	85	30	758	-838
Tax	26	12	92	-48
Total items that subsequently may be reclassified
to the income statement	-16	- 9	402	-654
Other comprehensive income for the period	-38	-15	386	-494
Total comprehensive income for the period	383	326	1,543	759
Comprehensive income attributable to:
Parent Company shareholders	377	327	1,540	760
Non-controlling interests	6	- 1	3	- 1

Fourth quarter and full year Consolidated balance sheet statement – condensed

	Apr 30	Apr 30
SEK M	2022	2021
Non-current assets
Intangible assets	10,262	8,779
Right-of-use assets	975	953
Tangible assets	954	897
Financial assets	615	533
Deferred tax assets	616	436
Total non-current assets	13,423	11,597
Current assets
Inventories	2,533	2,283
Accounts receivable	3,647	3,281
Accrued income	1,796	1,772
Other current receivables	1,827	1,502
Cash and cash equivalents	3,077	4,411
Total current assets	12,880	13,247
Total assets	26,303	24,844
Equity attributable to Parent Company shareholders	8,913	8,197
Non-controlling interests	3	0
Total equity	8,916	8,197
Non-current liabilities
Interest-bearing liabilities	4,099	3,043
Lease liabilities	841	854
Other liabilities	884	810
Total non-current liabilities	5,824	4,707
Current liabilities
Interest-bearing liabilities	510	2,141
Lease liabilities	245	200
Accounts payable	1,352	1,016
Advances from customers	4,161	3,759
Prepaid income	2,342	2,082
Accrued expenses	1,901	1,837
Other current liabilities	1,054	905
Total current liabilities	11,564	11,941
Total equity and liabilities	26,303	24,844

Fourth quarter and full year Changes in consolidated equity – condensed

	Apr 30
SEK M	2021/22	2020/21
Attributable to Parent Company shareholders
Opening balance	8,197	8,113
Comprehensive income for the period	1,540	760
Incentive programs	17	12
Dividend	-841	-688
Total	8,913	8,197
Attributable to non-controlling interests
Opening balance	0	1
Comprehensive income for the period	3	- 1
Total	3	0
Closing balance	8,916	8,197

Fourth quarter and full year Consolidated cash flow statement – condensed

Cash flow

	Q4		Full-year
SEK M	2021/22	2020/21	2021/22	2020/21
Income after financial items	534	437	1,501	1,630
Amortization and depreciation	263	308	1,039	1,204
Interest net	30	81	106	204
Other non-cash items	-131	44	-211	307
Interest received and paid	-35	-90	-114	-220
Income taxes paid	-137	-114	-452	-465
Operating cash flow	524	667	1,869	2,660
Change in inventories	171	158	-97	270
Change in operating receivables	-114	182	-291	-772
Change in operating liabilities	460	107	376	393
Change in w orking capital	516	447	-12	-109
Cash flow from operating activities	1,040	1,114	1,858	2,551
Investments in intangible assets	-375	-218	-1,220	-678
Investments in tangible assets	-43	-77	-188	-167
Continuous investments	-418	-296	-1,408	-845
Cash flow after continuous investments	623	818	450	1,706
Short-term investments	-	4	-	60
Business combinations, divestments and investments in other shares	-93	-42	-241	172
Cash flow after investments	530	781	209	1,938
Dividends	-420	-344	-841	-688
Cash flow from other financing activities	-1,428	-704	-886	-2,917
Cash flow for the period	-1,319	-267	-1,517	-1,667
Change in cash and cash equivalents during the period
Cash and cash equivalents at the beginning of the period	4,366	4,640	4,411	6,407
Cash flow for the period	-1,319	-267	-1,517	-1,667
Exchange rate differences	30	37	183	-329
Cash and cash equivalents at the end of the period	3,077	4,411	3,077	4,411

Fourth quarter and full year Parent company

Income statement and statement of comprehensive income - condensed

	Full-year
2021/22	2020/21
10	-27
1,102	468
1,112	441
6	-14
1,118	427
1,118	427
-	-
1,118	427

Balance sheet - condensed

	Apr 30	Apr 30
SEK M	2022	2021
Non-current assets
Intangible assets	39	46
Shares in subsidiaries	2,752	2,590
Receivables from subsidaries	2,160	2,194
Other financial assets	44	94
Deferred tax assets	44	27
Total non-current assets	5,039	4,951
Current assets
Receivables from subsidaries	2,599	2,895
Other current receivables	42	39
Cash and cash equivalents	1,863	3,421
Total current assets	4,504	6,355
Total assets	9,543	11,306
Shareholders' equity	2,368	2,087
Non-current liabilities
Interest-bearing liabilities	4,099	3,043
Provisions	13	40
Total non-current liabilities	4,112	3,083
Current liabilities
Interest-bearing liabilities	500	2,141
Liabilities to Group companies	2,482	3,858
Other current liabilities	81	137
Total current liabilities	3,063	6,136
Total shareholders' equity and liabilities	9,543	11,306

Fourth quarter and full year Accounting principles

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 2020/21.

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

Related party transactions are described in note 36 in the Annual Report for 2020/21. No material changes have taken place in relations or transactions with related parties companies compared with the description in the Annual report 2020/21. In accordance with the decision at the Annual General Meeting 2021, Elekta has paid SEK 35 M to Elekta Foundation, an independent philanthropic organization.

Exchange rates

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
		Q4			Apr 30
		2022	2021	1 Δ	2022	2021	1 Δ
Euroland	1 EUR	10.250	10.293	0%	10.349	10.151	2%
Great Britain	1 GBP	12.089	11.549	5%	12.294	11.682	5%
Japan	1 JPY	0.078	0.083	-5%	0.075	0.077	-2%
United States	1 USD	8.902	8.764	2%	9.839	8.377	17%

¹ April 30, 2022, vs April 30, 2021

Segment reporting

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 centres and Parent Company are not allocated per region. Currency exposure is concentrated to product supply centres. 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.

Q4 2021/22

				Other /	Group	% of net
SEK M	Americas	EMEA	APAC	Group-wide	total	sales
Net sales	1,313	1,680	1,245	-	4,239
Regional expenses	-782	-1,210	-849	-	-2,841	67%
Contribution margin	531	470	397	-	1,398	33%
Contribution margin, %	40%	28%	32%
Global costs	-	-	-	-828	-828	20%
Operating income	531	470	397	-828	570	13%
Net financial items	-	-	-	-36	-36
Income after financial items	531	470	397	-864	534

Q4 2020/21

				Other /	Group	% of net
SEK M	Americas	EMEA	APAC	Group-wide	total	sales
Net sales	1,079	1,522	1,066	-	3,667
Regional expenses	-737	-950	-753	-	-2,440	67%
Contribution margin	341	573	312	-	1,226	33%
Contribution margin, %	32%	38%	29%
Global costs	-	-	-	-681	-681	19%
Operating income	341	573	312	-681	545	15%
Net financial items	-	-	-	-108	-108
Income after financial items	341	573	312	-789	437

Full-year 2021/22

				Other /	Group	% of net
SEK M	Americas	EMEA	APAC	Group-wide	total	sales
Net sales	4,254	5,321	4,972	-	14,548
Regional 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%
Operating income	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

Full-year 2020/21

				Other /	Group	% of net
SEK M	Americas	EMEA	APAC	Group-wide	total	sales
Net sales	3,888	5,140	4,735	-	13,763
Regional expenses	-2,386	-3,260	-3,227	-	-8,874	64%
Contribution margin	1,502	1,880	1,507	-	4,889	36%
Contribution margin, %	39%	37%	32%
Global costs	-	-	-	-2,983	-2,983	22%
Operating income	1,502	1,880	1,507	-2,983	1,906	14%
Net financial items	-	-	-	-277	-277
Income after financial items	1,502	1,880	1,507	-3,259	1,630

Fourth quarter and full year Net sales by product type

Q4 2021/22

SEK M			Other /
	Americas	EMEA	APAC	Group-wide	Group total
Solutions	654	1,122	883	-	2,658
Service	660	558	363	-	1,581
Total	1,313	1,680	1,245	-	4,239

Q4 2020/21

				Other /
SEK M	Americas	EMEA	APAC	Group-wide	Group total
Solutions	530	988	736	-	2,254
Service	549	534	330	-	1,413
Total	1,079	1,522	1,066	-	3,667

Full-year 2021/22

				Other /
SEK M	Americas	EMEA	APAC	Group-wide	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

Full-year 2020/21

				Other /
SEK M	Americas	EMEA	APAC	Group-wide	Group total
Solutions	1,563	3,126	3,485	-	8,175
Service	2,325	2,014	1,249	-	5,588
Total	3,888	5,140	4,735	-	13,763

Fourth quarter and full year Financial instruments

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.

	Apr 30, 2022		Apr 30, 2021
SEK M	Carrying amount	Fair value	Carrying amount	Fair value
Long-term interest-bearing liabilities	4,099	4,251	3,043	3,250
Short-term interest-bearing liabilities	510	514	2,141	2,174

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

Financial instruments measured at fair value

SEK M	Level	Apr 30, 2022	Apr 30, 2021
FINANCIAL ASSETS
Financial assets measured at fair value through profit or loss:
Derivative financial instruments – non-hedge accounting	2	16	32
Short-term investments classified as cash equivalents	1	3	792
Financial assets measured at fair value through other
comprehensive income:
Equity instruments	1	-	60
Equity instruments	3	15	-
Derivatives used for hedging purposes:
Derivative financial instruments – hedge accounting	2	135	212
Total financial assets		168	1,096
FINANCIAL LIABILITIES
Financial liabilities at fair value through profit or loss:
Derivative financial instruments – non-hedge accounting	2	55	29
Contingent considerations	3	32	120
Derivatives used for hedging purposes:
Derivative financial instruments – hedge accounting	2	384	13
Total financial liabilities		471	162

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.

The reduction of SEK 45 M in 2021/22 in fair value of equity instruments was related to uncertainty in an investment in other companies and measured at fair value through other comprehensive income.

Fourth quarter and full year Key figures and data per share

Key figures

	Full year
	2016/171	2017/18	2018/19	2019/20	2020/21	2021/22
Gross order intake, SEK M	14,064	14,493	16,796	17,735	17,411	18,364
Net sales, SEK M	10,704	11,573	13,555	14,601	13,763	14,548
Order backlog, SEK M	22,459	27,974	32,003	34,689	33,293	39,656
Operating income, SEK M	598	1,845	1,696	1,657	1,906	1,643
Operating margin, %	5.6	15.9	12.5	11.3	13.9	11.3
Shareholders' equity, SEK M 2	6,774	6,987	7,779	8,113	8,197	8,913
Return on shareholders' equity, %	2	22	17	14	16	14
Net debt, SEK M	1,889	803	439	1,632	774	1,532
Operational cash conversion, %	145	95	61	35	82	69
Average number of employees	3,581	3,702	3,798	4,117	4,194	4,631

¹ Calculation based on IAS18.

² Attributable to Parent Company shareholders.

Data per share

	Full year
	2016/171	2017/18	2018/19	2019/20	2020/21	2021/22
Earnings per share
before dilution, SEK	0.33	3.53	3.14	2.84	3.28	3.02
after dilution, SEK	0.33	3.53	3.14	2.84	3.28	3.02
Cash flow per share
before dilution, SEK	2.69	3.79	2.48	-0.74	5.07	0.55
after dilution, SEK	2.69	3.79	2.48	-0.74	5.07	0.55
Shareholders' equity per share
before dilution, SEK	17.73	18.29	20.36	21.23	21.45	23.33
after dilution, SEK	17.73	18.29	20.36	21.23	21.45	23.33
Average number of shares
before dilution, thousands	381,306	382,027	382,027	382,062	382,083	382,083
after dilution, thousands	381,306	382,027	382,027	382,062	382,083	382,083
Number of shares at closing 2
before dilution, thousands	382,027	382,027	382,027	382,083	382,083	382,083
after dilution, thousands	382,027	382,027	382,027	382,083	382,083	382,083

¹ Calculation based on IAS18.

² Number of registered shares at closing excluding treasury shares (1,485,289 per April 30, 2022).

Data per quarter

	2019/20		2020/21			2021/22
SEK M	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Gross order intake	5,032	4,451	3,627	3,954	5,379	3,980	4,045	4,441	5,897
Net sales	4,008	2,981	3,534	3,581	3,667	3,009	3,697	3,602	4,239
Operating income	658	335	559	468	545	201	533	340	570
Cash flow from operating activities	1,244	211	535	690	1,114	-81	325	573	1,040

Order intake growth based on constant exchange rates

	2019/20	2020/21				2021/22
%	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Americas	0	66	-12	41	13	- 7	16	- 3	- 6
EMEA	-17	-20	20	-17	7	0	3	23	16
APAC	-13	-12	-12	8	46	- 4	19	- 3	- 5
Group	-10	4	- 2	2	18	- 4	12	8	2

Investments and amortization/depreciation

	Q4		Full-year
SEK M	2021/22	2020/21	2021/22	2020/21
R&D, net Capitalization Amortization	236 350 -114	51 218 -167	675 1,157 -482	- 2 676 -678
Other, net	3	- 2	- 2	- 6
Total, net	238	49	673	- 9

Significant events after the quarter

• The Board of Directors proposes a dividend of SEK 2.40 (2.20) per share (paid in two installments) for the fiscal year 2021/22
• On May 6, Elekta launched new radiosurgery system: Elekta Esprit

Fourth quarter and full year Alternative performance measures

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 www.elekta.com/investors/financials/definitions. Definitions and additional information on APMs can also be found on pages 155-157 in the Annual Report 2020/21.

Order and sales growth based on constant exchange rates

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.

Change gross order intake

								Group
	Americas			EMEA	APAC			total
	%	SEK M	%	SEK M	%	SEK M	%	SEK M
Q4 2021/22 vs. Q4 2020/21
Change based on constant exchange rates	- 6	-119	16	298	- 5	-75	2	104
Currency effects	8	151	8	161	7	101	8	413
Reported change	2	32	24	459	2	26	10	518
Q4 2020/21 vs. Q4 2019/20
Change based on constant exchange rates	13	251	7	143	46	536	18	930
Currency effects	-14	-267	- 7	-140	-15	-176	-12	-583
Reported change	- 1	-16	0	3	31	360	7	347
May - Apr 2021/22 vs. May - Apr 2020/21
Change based on constant exchange rates	- 2	-127	12	740	1	68	4	681
Currency effects	2	117	1	73	1	81	2	271
Reported change	0	- 9	13	812	3	150	5	953
May - Apr 2020/21 vs. May - Apr 2019/20
Change based on constant exchange rates	23	1,136	- 4	-316	5	259	6	1,079
Currency effects	-12	-581	- 5	-360	- 8	-462	- 8	-1,403
Reported change	11	555	-10	-676	- 4	-203	- 2	-324

Change net sales

								Group
		Americas EMEA			APAC		total
	%	SEK M	%	SEK M	%	SEK M	%	SEK M
Q4 2021/22 vs. Q4 2020/21
Change based on constant exchange rates	11	118	0	- 2	8	82	5	199
Currency effects	11	116	11	160	9	97	10	373
Reported change	22	235	10	158	17	179	16	572
Q4 2020/21 vs. Q4 2019/20
Change based on constant exchange rates	- 2	-22	3	55	0	- 3	1	29
Currency effects	-12	-154	- 7	-103	-10	-113	- 9	-371
Reported change	-14	-177	- 3	-49	-10	-116	- 9	-342
May - Apr 2021/22 vs. May - Apr 2020/21
Change based on constant exchange rates	7	279	2	98	4	205	4	582
Currency effects	2	87	2	84	1	32	1	203
Reported change	9	366	4	181	5	237	6	784
May - Apr 2020/21 vs. May - Apr 2019/20
Change based on constant exchange rates	- 4	-187	- 2	-118	11	516	1	211
Currency effects	- 9	-407	- 5	-289	- 8	-354	- 7	-1,049
Reported change	-13	-594	- 7	-406	4	162	- 6	-838

EBITDA

EBITDA is used for the calculation of operational cash conversion and the net debt/EBITDA ratio.

SEK M	Q4 2020/21	Q1 2021/22	Q2 2021/22	Q3 2021/22	Q4 2021/22
Operating income/EBIT	545	201	533	340	570
Amortization intangible assets:
Capitalized development costs	169	149	113	113	119
Assets relating business combinations	28	29	29	32	33
Depreciation tangible assets	111	100	105	106	112
EBITDA	853	479	780	591	833

Return on capital employed

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	Apr 30, 2021	Jul 31, 2021	Oct 31, 2021	Jan 31, 2022	Apr 30, 2022
Income after financial items (12 months rolling)	1,630	1,512	1,525	1,405	1,501
Financial expenses (12 months rolling)	295	276	245	238	200
Income after financial items plus financial expenses	1,924	1,788	1,770	1,644	1,702
Total assets	24,844	24,201	23,843	27,577	26,303
Deferred tax liabilities	-515	-468	-482	-443	-549
Long-term provisions	-224	-215	-218	-235	-215
Other long-term liabilities	-71	-88	-82	-144	-120
Accounts payable	-1,016	-1,145	-1,111	-1,187	-1,352
Advances from customers	-3,759	-3,712	-3,802	-4,267	-4,161
Prepaid income	-2,082	-2,021	-1,946	-2,238	-2,342
Accrued expenses	-1,837	-1,550	-1,603	-1,754	-1,901
Current tax liabilities	-137	-166	-199	-277	-114
Short-term provisions	-174	-159	-181	-187	-149
Derivative financial instruments	-35	-34	-40	-351	-361
Other current liabilities	-559	-406	-401	-365	-429
Capital employed	14,435	14,238	13,777	16,129	14,610
Average capital employed (last five quarters)	15,735	15,088	14,490	14,722	14,638
Return on capital employed	12%	12%	12%	11%	12%

Return on shareholders' equity

Return on shareholders' equity measures the return generated on shareholders' capital invested in the company.

SEK M	Q4 2020/21	Q1 2021/22	Q2 2021/22	Q3 2021/22	Q4 2021/22
Net income (12 months rolling)	1,254	1,164	1,173	1,079	1,154
Average shareholders' equity excluding
non-controlling interests (last five quarters)	8,069	8,121	8,185	8,375	8,515
Return on shareholders' equity	16%	14%	14%	13%	14%

Operational cash conversion

Cash flow is a focus area for management. The operational cash conversion shows the relation between cash flow from operating activities and EBITDA. Operational cash conversion

from operating activities and EBITDA. Operational cash conversion
SEK M	Q4 2020/21	Q1 2021/22	Q2 2021/22	Q3 2021/22	Q4 2021/22
Cash flow from operating activities	1,114	-81	325	573	1,040
EBITDA	853	479	780	591	833
Operational cash conversion	130%	-17%	42%	97%	125%

Working capital

In order to optimize cash generation, management focuses on working capital and reducing lead times between orders booked and cash received. Working capital

	Apr 30	Apr 30
SEK M	2022	2021
Working capital assets
Inventories	2,533	2,283
Accounts receivable	3,647	3,281
Accrued income	1,796	1,772
Other operating receivables	1,459	1,116
Sum working capital assets	9,435	8,451
Working capital liabilities
Accounts payable	1,352	1,016
Advances from customers	4,161	3,759
Prepaid income	2,342	2,082
Accrued expenses	1,901	1,837
Short-term provisions	149	174
Other current liabilities	429	559
Sum working capital liabilities	10,333	9,428
Net working capital	-898	-977
% of 12 months net sales	-6%	-7%

Days Sales Outstanding (DSO)

Days Sales Outstanding was negative 27 days on April 30, 2022 (negative 21 days per April 30, 2021). Days Sales Outstanding (DSO)

	Apr 30	Apr 30
SEK M	2022	2021
Americas	-66	-72
EMEA	39	57
APAC	-57	-64
Group	-27	-21

Net debt and net debt/EBITDA ratio

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.

SEK M	Apr 30, 2021	Jul 31, 2021	Oct 31, 2021	Jan 31, 2022	Apr 30, 2022
Long-term interest-bearing liabilities	3,043	3,067	3,050	4,625	4,099
Short-term interest-bearing liabilities	2,141	1,769	1,520	1,446	510
Cash and cash equivalents and short-term investments	-4,411	-3,652	-2,796	-4,366	-3,077
Net debt	774	1,183	1,773	1,705	1,532
EBITDA (12 months rolling)	3,110	2,938	2,871	2,703	2,682
Net debt/EBITDA ratio	0.25	0.40	0.62	0.63	0.57

Fourth quarter and full year Shareholder information

Conference call

Elekta will host a web conference at 10:00-11:00 CET on May 25 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 8 505 583 73 United Kingdom: +44 333 300 9266 United States: +1 646 722 4903

https://elekta-qreports.creo.se/220525

Financial calendar

Annual Report 2021/22	Jul 8, 2022
Annual General Meeting 2022	Aug 25, 2022
Interim report, Q1, May-July 2022/23	Aug 25, 2022
Interim report, Q2, May-Oct 2022/23	Nov 24, 2022

About Elekta

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.

Purpose

Elekta's purpose is to inspire hope for anyone dealing with cancer, be that patients, clinicians, or relatives.

Mission

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.

Vision

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.

Strategy – ACCESS 2025

Through our strategy, ACCESS 2025, we improve patient access to the best cancer care by:

• Accelerating innovation with customer utilization in mind
• Driving partner integration across the cancer care ecosystem
• Being the customer lifetime companion
• Driving market adoption across the globe

For further information, please contact:

Tobias Hägglöv

CFO +46 76 107 4799 tobias.hagglov@elekta.com

Cecilia Ketels

Head of Investor Relations +46 76 611 7625 cecilia.ketels@elekta.com

Kira Haapanen

IR Manager +46 73 719 4622 kira.haapanen@elekta.com

Elekta AB (publ) 556170-4015

Kungstensgatan 18 Box 7593 SE 103 93 Stockholm Sweden