Earnings Release • Nov 25, 2021
Earnings Release
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| Q2 | First six months | |||||
|---|---|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | Δ | 2021/22 | 2020/21 | Δ |
| Gross order intake | 4,045 | 3,627 | 12% 3 | 8,025 | 8,078 | 3% 3 |
| Net sales | 3,697 | 3,534 | 7% 3 | 6,707 | 6,515 | 7% 3 |
| Gross margin | 38.6% | 40.9% | -2.3 ppts | 37.9% | 43.2% | -5.2 ppts |
| EBIT | 533 | 559 | -5% | 734 | 893 | -18% |
| EBIT margin | 14.4% | 15.8% | -1.3 ppts | 10.9% | 13.7% | -2.7 ppts |
| Cash flow 1 | -17 | 362 | -105% | -360 | 389 | -193% |
| Earnings per share, SEK 2 | 1.00 | 0.98 | 2% | 1.33 | 1.55 | -14% |
1 After continuous investments.
2 Before/after dilution.
3 Based on constant currency.
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 November 25, 2021. (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.
The increasing need for investments in cancer care and radiotherapy across the globe supported a gradual market recovery during the quarter. Our orders grew with double digits, and despite the continued global supply chain challenges we secured good revenue growth supported by a strong finish of the quarter. Our margins improved sequentially but were still impacted by higher logistics costs.
There is a need for sustained investment in radiotherapy as the cancer patient backlog remains a huge concern for health care providers in many countries. In the second quarter the radiotherapy market continued to recover, and our orders grew with 12 percent. The recovery is still a story with two different dynamics. Our mature markets, the US, Western Europe and Japan showed strong growth, while most emerging markets in the Middle East, Africa, and parts of East Asia continued to struggle with the effects of the pandemic.
The challenges within the global supply chain, with port congestion and longer shipping times and component shortages, made it more difficult to deliver to our customers' sites and resulted in higher costs and inventory levels. I am proud of how our supply chain organization has been able to manage the uncertain situation and we showed a good revenue growth of 7 percent in the quarter. We also managed to increase our gross and operating margins compared to the previous quarter due to higher volumes and improved project mix.
An important priority of our strategy, ACCESS 2025, is to address our customers' increasing needs for streamlined clinical workflows, automation, and productivity. We are accelerating our digital transformation program by expanding our software innovation projects and engineering base. Software solutions account for around one fourth of Elekta's revenue and we expect their importance to increase going forward.
Another key priority is our paradigm shifting journey with Elekta Unity. During the recent ASTRO conference, we presented the latest technology updates and moved forward with Comprehensive Motion Management. We also see customers placing orders for their second Unity system, as Odense did in the quarter.
We are driving partner integration across the cancer care ecosystem. One recent example is the Netherlands Cancer Institute (NKI) partnering with Kaiku Health to develop the next generation of digital patient monitoring and management system.
Our sustainability agenda is an integral part of ACCESS 2025 and we have established a Sustainability-Linked Bond Framework to be fully transparent in our ambition and journey towards closing the access gap. I am very pleased to report that the quarterly increase in the installed base in underserved markets enabled around 14 million additional people around the world to gain access to radiotherapy.
Going forward, we expect positive impact from continued market recovery, with strong demand and better access to customers. At the same time, we expect the negative effects from the supply chain challenges to remain over the next quarters and see higher risk of component shortages going forward.
Gustaf Salford President and CEO
The positive order trend seen in the last two quarters continued in the second quarter, with strong demand in mature markets while emerging markets continued to be more challenging. The underlying structural need for more radiotherapy capacity together with more normalized market conditions in mature markets drove the strong order performance.
In the second quarter gross order intake increased by 12 percent in constant currency compared to the second quarter last year. Both Solutions and Service grew with double digits and all three regions had a positive development. Brachy and Neuro had especially strong performances in the quarter. Order growth was strongest in mature markets, but there were signs of recovery in some emerging markets.
Order backlog increased both in constant currency and SEK, and amounted to SEK 34,076 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 68 M.
| Q2 | First six months | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 1 Δ |
Δ | 2021/22 | 2020/21 | 1 Δ |
Δ |
| Americas | 1,086 | 925 | 16% | 17% | 2,551 | 2,653 | 1% | -4% |
| EMEA | 1,446 | 1,428 | 3% | 1% | 2,710 | 2,758 | 2% | -2% |
| APAC | 1,513 | 1,274 | 19% | 19% | 2,764 | 2,667 | 7% | 4% |
| Group | 4,045 | 3,627 | 12% | 12% | 8,025 | 8,078 | 3%2 | -1% |
1 Based on constant currency.
2 Excluding the largest deal ever in Elekta's history the growth rate was 14%.
In Americas the reported order intake increased by 16 percent in constant currency during the second quarter. The strong growth is mainly a result of the US and Canadian markets returning to normal conditions as the quarter progressed without setbacks of another Covid wave and with easing of restrictions. Most Latin American countries still faced pandemic related challenges even though growth returned in some markets.
Order intake in EMEA increased by 3 percent in constant currency. Europe showed very strong double-digit growth, which was almost fully offset by order declines in the Middle East and Africa. Strongest performance in Europe was seen in Denmark, France and the Benelux countries, as well as in Italy. The Middle East and almost all African countries had a large drop in order intake with Covid still negatively impacting demand.
The order intake in APAC increased by 19 percent in constant currency. The positive development was mainly driven by very strong growth in India and continued good development in China. Japan returned to good growth during the quarter, and strong order development was also seen in New Zealand and the Philippines. Order intake in other markets in the region was mixed, with East Asian countries continuing on a lower level.
Gross order intake Group
Gross order intake Americas
Installations continued on a more normalized level in the quarter. Differences in ease of access to hospitals still persisted, which together with the turbulence in logistics markets and travel restrictions made planning of installations more difficult than normal. Mature markets were strong in the quarter with overall growth weakened by the development in emerging markets. Based on constant currency net sales increased by 7 percent in the second quarter. In SEK, net sales increased by 5 percent to SEK 3,697 M (3,534).
| Q2 | First six months | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 1 Δ |
Δ | 2021/22 | 2020/21 | 1 Δ |
Δ |
| Americas | 1,111 | 906 | 24% | 23% | 1,938 | 1,851 | 10% | 5% |
| EMEA | 1,284 | 1,262 | 6% | 2% | 2,427 | 2,370 | 6% | 2% |
| APAC | 1,302 | 1,367 | -2% | -5% | 2,341 | 2,294 | 7% | 2% |
| Group | 3,697 | 3,534 | 7% | 5% | 6,707 | 6,515 | 7% | 3% |
1 Based on constant currency.
Geographically, Americas reported strong net sales growth both in North and South America with good double-digit growth rates in the US and a great development in Canada. The growth in the US was achieved despite a lower-than-normal installation pace due to shortages of contractors to refurbish bunkers. Europe had strong development in important radiotherapy markets such as Germany, UK and Italy, however the good European growth in EMEA was offset by the negative development in the Middle East and Africa. The pandemic related challenges in the emerging markets continued during the quarter and resulted in an overall negative development for APAC. However, mature markets in APAC such as Australia and Japan had good revenue growth and the strong development of installations in China continued.
Net sales of solutions increased by 8 percent in constant currency, with strong performance in MR-Linac and Linac. At the end of the period Elekta had an installed base of approximately 6,800 devices, of which approximately 4,900 units were linacs, MR-Linacs or Leksell Gamma Knife systems. 45 percent of the installed base of linacs were in emerging (underserved) markets with a growth of around 40 systems in the quarter.
Service performed well with a growth rate of 5 percent based on constant currency and increased service revenue in almost all business lines.
| Q2 | First six months | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 1 Δ |
Δ | 2021/22 | 2020/21 | 1 Δ |
Δ |
| Solutions | 2,254 | 2,136 | 8% | 6% | 3,885 | 3,687 | 10% | 5% |
| Service | 1,443 | 1,398 | 5% | 3% | 2,821 | 2,828 | 4% | 0% |
| Total | 3,697 | 3,534 | 7% | 5% | 6,707 | 6,515 | 7% | 3% |
1 Based on constant currency.
Gross margin amounted to 38,6 percent (40,9) in the second quarter. The decrease compared to last year's second quarter was mainly explained by high supply chain, logistics and service costs of ~300 bps. The main part of this effect is pandemic-driven and expected to be temporary. Currency had a negative effect of ~100 bps. The negative effect was partly offset by higher volume and improved project mix.
Operating expenses during the second quarter decreased by 1 percent in constant currencies despite higher selling expenses and administration costs. The main reason for decreased operating expenses was lower net R&D expenditure. Accelerated investments in innovation were more than offset by the lower amortization from Unity and higher capitalizations as more projects entered the capitalization phases. Gross R&D expenditure to net sales increased to 12 percent (10) on a rolling twelve-month basis. Amortization of intangible assets and depreciation of tangible fixed assets amounted to a total of SEK 246 M (288) in the quarter. The increase in selling expenses of 14% in constant currency was driven by more travelling and marketing activities like the physical exhibitions, ESTRO and ASTRO. Administration costs increased 8 percent in constant currencies compared to comparable quarter last year due to one-off project related costs. Operating result, EBIT, was SEK 533 M (559) representing a margin of 14.4 percent (15.8).
Net financial items amounted to SEK -30 M (-68). The key driver was less interest expense as a result of lower level of gross debt. Profit before tax amounted to SEK 503 M (490) and tax amounted to SEK -121 M (-115), representing a tax rate of 24 percent (23.5). Net income amounted to SEK 382 M (375) and earnings per share amounted to SEK 1.00 (0.98) before and after dilution. Return on shareholders' equity amounted to 14 percent (16) and return on capital employed was 12 percent (13).
Cash flow from operating activities was SEK 325 M (535). Cash flow after continuous investments was SEK -17 M (362). Investments in intangible assets amounted to SEK 289 M (145) in the second quarter. The increase was mainly related to R&D investments in the Linac family solutions. Investments in tangible assets increased to SEK 52 M (28) in the second quarter.
The weaker cash flow was related to lower earnings, increased R&D investments and increased working capital compared to last year, see working capital section below.
| Q2 First six months |
||||
|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 2021/22 | 2020/21 |
| Operating cash flow | 644 | 804 | 962 | 1,334 |
| Change in w orking capital |
-319 | -269 | -718 | -588 |
| Cash flow from operating | ||||
| activities | 325 | 535 | 244 | 746 |
| Continuous investments | -342 | -173 | -604 | -358 |
| Cash flow after continuous | ||||
| investments | -17 | 362 | -360 | 389 |
| Operational cash conversion | 42% | 63% | 19% | 50% |
12% R&D expenditure of net sales, RTM
Net working capital increased by SEK 106 M to SEK -292 M (-398) corresponding to -2 percent (-3) of net sales on twelve months rolling basis. On the asset side accounts receivables decreased as a result of strong collections and accrued income increased mainly due to MR-Linac projects in Canada and China. The increased inventory was due to actions taken to mitigate extended supply chain lead times and reflects more systems in transit, which also explained the higher customer advances. All individual working capital items were impacted by currency movements while the net effect on working capital from currencies was limited. For more information, see page 28.
Cash and cash equivalents and short-term investments amounted to SEK 2,796 M (3,913). Interest-bearing liabilities excluding lease liabilities amounted to SEK 4,570 M (5,862). Net debt amounted to SEK 1,773 M (1,949). Net debt in relation to EBITDA was 0.62 (0.60). The average maturity of interest-bearing liabilities was 2.8 years.
| Oct 31 | Oct 31 | Apr 30 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2021 |
| Long-term interest-bearing liabilities | 3,050 | 4,983 | 3,043 |
| Short-term interest-bearing liabilities | 1,520 | 879 | 2,141 |
| Cash and cash equivalents and short-term | |||
| investments | -2,796 | -3,913 | -4,411 |
| Net debt | 1,773 | 1,949 | 774 |
| Long-term lease liabilities | 849 | 908 | 854 |
| Short-term lease liabilities | 217 | 198 | 200 |
| Net debt including lease liabilities | 2,840 | 3,056 | 1,828 |
The exchange rate effect from the translation of cash and cash equivalents amounted to SEK 5 M (-223). The translation difference in interest-bearing liabilities amounted to SEK 11 M (-200).
Elekta's sustainability agenda is set on improving access to healthcare globally while operating a responsible and sustainable business. Agenda 2030 and its Global Goals for Sustainable Development (SDG) guides Elekta's approach to sustainability. The focus areas are: Access to Healthcare, Green Processes, Business Ethics and People in Focus.
Elekta's recently established Sustainability-Linked Bond (SLB) Framework will strengthen Elekta's sustainability focus by increasing global access to cancer care, which in turn will be crucial in reaching the SDG target 3.4 for non-communicable diseases. The target is to increase the installed net base of linacs with 825 units in underserved markets until April 30, 2025. Elekta strives to achieve this target through the following strategy:
Elekta offer value creating innovations tailored to regional clinical needs, including the specific needs of underserved markets. Elekta strives to develop solutions that are smarter and more user-friendly, and that require less experience of the clinicians that operate them, without risk to the clinical or operational excellence of the cancer care. As utilization of already available equipment remains a challenge in underserved markets, Elekta is committed to drive digital solutions for value-based healthcare and expand utilisation of remote artificial intelligence (AI) service platforms to increase high clinical uptime even in hospitals in remote locations, shorten and improve treatment plans and patient outcomes.
Elekta is partnering with third party financiers, such as leasing companies or export credit agencies, enabling financing solutions and other alternative payment models to help lower the barrier for entry to acquire modern technology demanded by customers in underserved markets. From timeto-time Elekta also provides financing to customers using the balance sheet, allowing for longer payment terms.
Elekta collaborates and partners with clinics, researchers, governments, and the civil society to raise awareness about radiotherapy and the essence of finding cancer at an early stage, to find viable financial solutions and to further improve access to cancer care.
Another fundamental element to increase access to care is to have the workforce required for delivering radiotherapy. Elekta's education and training portfolio broadly aims to cover three main categories of training gap and extends from training on-site/clinical, in classroom, remotely and on-demand.
For more details on the Sustainability-Linked Bond Framework please see Elekta's website.
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.
The impact on Elekta's business from Covid-19 is decreasing, but it continues to be negative. Next to access to hospitals for installations the higher logistic and supply chain costs in the wake of the pandemic have the largest impact on Elekta's financials.
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. The production sites of linacs in Crawley, UK and Beijing, China has been fully operational as has the production facilities of Brachy in the Netherlands and Neuro in Sweden. The continuity of Elekta's supplychain has benefitted from a dual source strategy and the fact that Elekta and its suppliers being labelled essential business by relevant government authorities.
Elekta has not received any government grants in the second quarter. For 2021/22 Elekta has not received any government grants in Sweden and on a global basis approximately SEK 2 M.
In October Elekta announced that it has established a Sustainability-Linked Bond Framework for issues of sustainability-linked bonds (SLB) under its Medium Term Note Program. Elekta is among the first companies in Sweden to establish this type of investment framework for bonds.
In October Elekta received an investment grade (IG) rating from S&P Global Ratings (S&P). S&P has assigned a BBB- rating to Elekta and to the Group's senior unsecured notes, with stable outlook. S&P notes that Elekta's rating reflects the global leading position, ability to introduce new innovative treatment solutions and the key credit strengths being low leverage and stable cash generation.
In September Elekta acquired its long-time partner and Turkish distributor of neurosurgery solutions, Özyürek Mümessillik ve Dış Ticaret A.Ş. The acquisition will improve Elekta's market access in the region and strengthen its relationship with customers.
At the Annual General Meeting in August Elekta's shareholders approved the Board of Directors' proposal to establish the Elekta Foundation. The Elekta Foundation's mission is an important part of Elekta's environmental, social, and governance (ESG) strategy and priorities. Its mission is to initiate and support projects and programs in partnership with governments, NGOs and healthcare providers in low- and middle-income countries to improve access to cancer care. Elekta's initial foundation contribution of SEK 35 M will be paid in the third quarter and reported in the income statement.
• ≥50% of net profit for the year
In August Elekta established a permanent legal entity in Indonesia's capital, Jakarta, in order to address the unmet need for high quality, modern cancer care.
Ardie Ermers has been appointed new EVP Region Europe and will became a member of Elekta's Executive Management team at his start on December 1. Ardie has worked for Philips for almost 23 years in various roles, including senior management positions, and most recently as Global General Manager for Radiation Oncology.
No new material legal disputes and no changes to ongoing material legal disputes to report.
The average number of employees during the period was 4,522 (4,073). The average number of employees in the Parent Company was 55 (44).
Total number of registered shares on October 31, 2021 was 383,568,409 of which 14,980,769 were A-shares and 368,587,640 B-shares. On October 31, 2021 1,485,289 shares were treasury shares held by Elekta.
1 For more details about the previous significant events please see respective quarterly report.
2 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.
The Board of Directors and the President and CEO declare that the undersigned interim report provides a fair overview of the company's and Group's operations, their financial position and performance, and describes material risks and uncertainties facing the company and other companies in the Group.
Stockholm, November 25, 2021
Laurent Leksell Chairman of the board
Caroline Leksell Cooke Member of the board
Jan Secher Member of the board
Johan Malmquist Member of the board
Birgitta Stymne Göransson Member of the board
Wolfgang Reim Member of the board
Cecilia Wikström Member of the board
Gustaf Salford President and CEO
Elekta AB (publ), 556170-4015
We have reviewed the condensed interim report for Elekta AB as at October 31, 2021 and for the six months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Stockholm, the 25 th of November 2021
Ernst & Young AB
Rickard Andersson Authorized Public Accountant
| Q2 | First six months | 12 months | ||||
|---|---|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 2021/22 | 2020/21 | RTM | 2020/21 |
| Net sales | 3,697 | 3,534 | 6,707 | 6,515 | 13,955 | 13,763 |
| Cost of products sold | -2,270 | -2,089 | -4,164 | -3,703 | -8,614 | -8,153 |
| Gross income | 1,427 | 1,445 | 2,543 | 2,812 | 5,341 | 5,610 |
| Selling expenses | -317 | -279 | -633 | -550 | -1,226 | -1,143 |
| Administrative expenses | -287 | -259 | -561 | -539 | -1,108 | -1,086 |
| R&D expenses | -310 | -377 | -701 | -763 | -1,424 | -1,486 |
| Other operating income and expenses | -27 | -15 | -34 | -55 | -64 | -85 |
| Exchange rate differences | 47 | 44 | 119 | -11 | 227 | 97 |
| Operating result | 533 | 559 | 734 | 893 | 1,747 | 1,906 |
| Financial items, net | -30 | -68 | -66 | -121 | -222 | -277 |
| Profit before tax | 503 | 490 | 668 | 773 | 1,525 | 1,630 |
| Income taxes | -121 | -115 | -160 | -182 | -356 | -377 |
| Net income | 382 | 375 | 507 | 591 | 1,170 | 1,253 |
| Net income attributable to: | ||||||
| Parent Company shareholders | 383 | 375 | 509 | 591 | 1,173 | 1,254 |
| Non-controlling interests | - 1 |
0 | - 2 |
0 | - 3 |
- 1 |
| 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 | 1.00 | 0.98 | 1.33 | 1.55 | 3.07 | 3.28 |
| After dilution, SEK | 1.00 | 0.98 | 1.33 | 1.55 | 3.07 | 3.28 |
| Q2 | First six months | 12 months | ||||
|---|---|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 2021/22 | 2020/21 | RTM | 2020/21 |
| Net income | 382 | 375 | 507 | 591 | 1,170 | 1,253 |
| Other comprehensive income: | ||||||
| Items that will not be reclassified to the income statement: | ||||||
| Remeasurements of defined benefit pension plans | 0 | - | 10 | - | 7 | - 3 |
| Change in fair value of equity instruments | - 3 |
30 | - 1 |
74 | 131 | 206 |
| Tax | 1 | - 6 |
- 3 |
-16 | -30 | -43 |
| Total items that will not be reclassified to the income | ||||||
| statement | - 2 |
23 | 6 | 58 | 108 | 160 |
| Items that subsequently may be reclassified to the income | ||||||
| statement: | ||||||
| Revaluation of cash flow hedges |
-33 | -72 | -116 | 132 | -16 | 231 |
| Translation differences from foreign operations | -169 | 170 | -63 | -529 | -372 | -838 |
| Tax relating to revaluation of cash flow hedges |
7 | 15 | 24 | -28 | 4 | -48 |
| Total items that subsequently may be reclassified | ||||||
| to the income statement | -195 | 112 | -155 | -425 | -384 | -654 |
| Other comprehensive income for the period | -197 | 136 | -149 | -367 | -276 | -494 |
| Total comprehensive income for the period | 184 | 511 | 358 | 224 | 894 | 759 |
| Comprehensive income attributable to: | ||||||
| Parent Company shareholders | 186 | 511 | 360 | 223 | 896 | 760 |
| Non-controlling interests | - 2 |
0 | - 2 |
0 | - 2 |
- 1 |
| Oct 31 | Oct 31 | Apr 30 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2021 |
| Non-current assets | |||
| Intangible assets | 9,034 | 9,112 | 8,779 |
| Right-of-use assets | 966 | 1,009 | 953 |
| Other tangible assets | 896 | 894 | 897 |
| Financial assets | 552 | 803 | 533 |
| Deferred tax assets | 454 | 470 | 436 |
| Total non-current assets | 11,903 | 12,288 | 11,597 |
| Current assets | |||
| Inventories | 2,416 | 2,455 | 2,283 |
| Accounts receivable | 3,037 | 3,218 | 3,281 |
| Accrued income | 1,988 | 1,929 | 1,772 |
| Other current receivables | 1,702 | 1,694 | 1,502 |
| Cash and cash equivalents | 2,796 | 3,913 | 4,411 |
| Total current assets | 11,940 | 13,208 | 13,247 |
| Total assets | 23,843 | 25,497 | 24,844 |
| Equity attributable to Parent Company shareholders | 8,143 | 7,998 | 8,197 |
| Non-controlling interests | - 2 |
1 | 0 |
| Total equity | 8,141 | 7,999 | 8,197 |
| Non-current liabilities | |||
| Long-term interest-bearing liabilities | 3,050 | 4,983 | 3,043 |
| Long-term lease liabilities | 849 | 908 | 854 |
| Other long-term liabilities | 782 | 906 | 810 |
| Total non-current liabilities | 4,681 | 6,798 | 4,707 |
| Current liabilities | |||
| Short-term interest-bearing liabilities | 1,520 | 879 | 2,141 |
| Short-term lease liabilities | 217 | 198 | 200 |
| Accounts payable | 1,111 | 987 | 1,016 |
| Advances from customers | 3,802 | 3,881 | 3,759 |
| Prepaid income | 1,946 | 1,985 | 2,082 |
| Accrued expenses | 1,603 | 1,668 | 1,837 |
| Other current liabilities | 822 | 1,102 | 905 |
| Total current liabilities | 11,020 | 10,700 | 11,941 |
| Total equity and liabilities | 23,843 | 25,497 | 24,844 |
| Oct 31 | Apr 30 | ||
|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 2020/21 |
| Attributable to Parent Company shareholders | |||
| Opening balance | 8,197 | 8,113 | 8,113 |
| Comprehensive income for the period | 360 | 223 | 760 |
| Incentive programs | 7 | 6 | 12 |
| Dividend | -420 | -344 | -688 |
| Total | 8,143 | 7,998 | 8,197 |
| Attributable to non-controlling interests | |||
| Opening balance | 0 | 1 | 1 |
| Comprehensive income for the period | - 2 |
0 | - 1 |
| Total | - 2 |
1 | 0 |
| Closing balance | 8,141 | 7,999 | 8,197 |
| Q2 | First six months | 12 months | ||||
|---|---|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 2021/22 | 2020/21 | RTM | 2020/21 |
| Profit before tax | 503 | 490 | 668 | 773 | 1,525 | 1,630 |
| Amortization and depreciation | 246 | 288 | 524 | 604 | 1,124 | 1,204 |
| Interest net | 23 | 49 | 52 | 89 | 167 | 204 |
| Other non-cash items | 7 | 132 | -36 | 151 | 120 | 307 |
| Interest received and paid | -31 | -51 | -63 | -91 | -192 | -220 |
| Income taxes paid | -104 | -104 | -183 | -192 | -456 | -465 |
| Operating cash flow | 644 | 804 | 962 | 1,334 | 2,288 | 2,660 |
| Changes in inventories | 34 | 111 | -128 | 118 | 25 | 270 |
| Changes in operating receivables | -543 | -628 | -252 | -852 | -172 | -772 |
| Changes in operating liabilities | 190 | 248 | -338 | 146 | -91 | 393 |
| Change in w orking capital |
-319 | -269 | -718 | -588 | -239 | -109 |
| Cash flow from operating activities | 325 | 535 | 244 | 746 | 2,049 | 2,551 |
| Investments intangible assets | -289 | -145 | -515 | -295 | -899 | -678 |
| Investments tangible assets | -52 | -28 | -89 | -63 | -193 | -167 |
| Continuous investments | -342 | -173 | -604 | -358 | -1,092 | -845 |
| Cash flow after continuous investments | -17 | 362 | -360 | 389 | 957 | 1,706 |
| Short-term investments | - | - 4 |
- | 56 | 4 | 60 |
| Business combinations, divestments and investments in | ||||||
| other shares | -99 | - 4 |
-121 | -229 | 280 | 172 |
| Cash flow after investments | -116 | 354 | -481 | 215 | 1,242 | 1,938 |
| Dividends | -420 | -344 | -420 | -344 | -764 | -688 |
| Cash flow from other financing activities |
-285 | -2,088 | -718 | -2,143 | -1,493 | -2,917 |
| Cash flow for the period | -821 | -2,078 | -1,619 | -2,271 | -1,015 | -1,667 |
| Change in cash and cash equivalents during the period Cash and cash equivalents at the beginning of the |
||||||
| period | 3,652 | 5,846 | 4,411 | 6,407 | 3,913 | 6,407 |
| Cash flow for the period |
-821 | -2,078 | -1,619 | -2,271 | -1,015 | -1,667 |
| Exchange rate differences | -34 | 145 | 5 | -223 | -102 | -329 |
| Cash and cash equivalents at the end of the | ||||||
| period | 2,796 | 3,913 | 2,796 | 3,913 | 2,796 | 4,411 |
| First six months | ||
|---|---|---|
| SEK M | 2021/22 | 2020/21 |
| Operating expenses | -130 | -118 |
| Financial net | 353 | 98 |
| Income after financial items | 223 | -20 |
| Tax | 21 | 10 |
| Net income | 244 | -10 |
| Statement of comprehensive income | ||
| Net income | 244 | -10 |
| Other comprehensive income | - | - |
| Total comprehensive income | 244 | -10 |
| Oct 31 | Apr 30 | |
|---|---|---|
| SEK M | 2021 | 2021 |
| Non-current assets | ||
| Intangible assets | 42 | 46 |
| Shares in subsidiaries | 2,634 | 2,590 |
| Receivables from subsidaries | 2,273 | 2,194 |
| Other financial assets | 94 | 94 |
| Deferred tax assets | 48 | 27 |
| Total non-current assets | 5,091 | 4,951 |
| Current assets | ||
| Receivables from subsidaries | 2,034 | 2,895 |
| Other current receivables | 81 | 39 |
| Cash and cash equivalents | 1,476 | 3,421 |
| Total current assets | 3,591 | 6,355 |
| Total assets | 8,682 | 11,306 |
| Shareholders' equity | 1,911 | 2,087 |
| Non-current liabilities | ||
| Long-term interest-bearing liabilities | 3,049 | 3,043 |
| Long-term provisions | 36 | 40 |
| Total non-current liabilities | 3,085 | 3,083 |
| Current liabilities | ||
| Short-term interest-bearing liabilities | 1,514 | 2,141 |
| Short-term liabilities to Group companies | 2,086 | 3,858 |
| Other current liabilities | 86 | 137 |
| Total current liabilities | 3,686 | 6,136 |
| Total shareholders' equity and liabilities | 8,682 | 11,306 |
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 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.
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 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Q2 | Oct 31 | Apr 30 | |||||||
| 2021 | 2020 | 1 Δ |
2021 | 2020 | 2021 | 1 Δ |
2 Δ |
||
| Euroland | 1 EUR | 10.153 | 10.430 | -3% | 9.940 | 10.429 | 10.151 | -5% | -2% |
| Great Britain | 1 GBP | 11.862 | 11.575 | 2% | 11.751 | 11.525 | 11.682 | 2% | 1% |
| Japan | 1 JPY | 0.078 | 0.085 | -9% | 0.075 | 0.086 | 0.077 | -12% | -3% |
| United States | 1 USD | 8.562 | 9.079 | -6% | 8.522 | 8.928 | 8.377 | -5% | 2% |
1 October 31, 2021 vs October 31, 2020.
2 October 31, 2021 vs Apr 30, 2021.
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.
Q2 2021/22
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 1,111 | 1,284 | 1,302 | - | 3,697 | |
| Regional expenses | -646 | -783 | -870 | - | -2,298 | 62% |
| Contribution margin | 465 | 501 | 433 | - | 1,399 | 38% |
| Contribution margin, % | 42% | 39% | 33% | |||
| Global costs | - | - | - | -866 | -866 | 23% |
| Operating result | 465 | 501 | 433 | -866 | 533 | 14% |
| Net financial items | - | - | - | -30 | -30 | |
| Profit before tax | 465 | 501 | 433 | -896 | 503 |
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 906 | 1,262 | 1,367 | - | 3,534 | |
| Regional expenses | -522 | -743 | -908 | - | -2,174 | 62% |
| Contribution margin | 383 | 519 | 458 | - | 1,360 | 38% |
| Contribution margin, % | 42% | 41% | 34% | |||
| Global costs | - | - | - | -802 | -802 | 23% |
| Operating result | 383 | 519 | 458 | -802 | 559 | 16% |
| Net financial items | - | - | - | -68 | -68 | |
| Profit before tax | 383 | 519 | 458 | -870 | 490 |
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 1,938 | 2,427 | 2,341 | - | 6,707 | |
| Regional expenses | -1,195 | -1,543 | -1,576 | - | -4,314 | 64% |
| Contribution margin | 743 | 885 | 765 | - | 2,393 | 36% |
| Contribution margin, % | 38% | 36% | 33% | |||
| Global costs | - | - | - | -1,659 | -1,659 | 25% |
| Operating result | 743 | 885 | 765 | -1,659 | 734 | 11% |
| Net financial items | - | - | - | -66 | -66 | |
| Profit before tax | 743 | 885 | 765 | -1,725 | 668 |
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 1,851 | 2,370 | 2,294 | - | 6,515 | |
| Regional expenses | -1,059 | -1,421 | -1,489 | - | -3,968 | 61% |
| Contribution margin | 792 | 949 | 806 | - | 2,547 | 39% |
| Contribution margin, % | 43% | 40% | 35% | |||
| Global costs | - | - | - | -1,653 | -1,653 | 25% |
| Operating result | 792 | 949 | 806 | -1,653 | 893 | 14% |
| Net financial items | - | - | - | -121 | -121 | |
| Profit before tax | 792 | 949 | 806 | -1,774 | 773 |
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 result | 1,502 | 1,880 | 1,507 | -2,983 | 1,906 | 14% |
| Net financial items | - | - | - | -277 | -277 | |
| Profit before tax | 1,502 | 1,880 | 1,507 | -3,259 | 1,630 |
| Other / | Group | % of net | ||||
|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | total | sales |
| Net sales | 3,976 | 5,198 | 4,781 | - | 13,955 | |
| Regional expenses | -2,523 | -3,382 | -3,315 | - | -9,220 | 66% |
| Contribution margin | 1,453 | 1,815 | 1,466 | - | 4,735 | 34% |
| Contribution margin, % | 37% | 35% | 31% | |||
| Global costs | - | - | - | -2,988 | -2,988 | 21% |
| Operating result | 1,453 | 1,815 | 1,466 | -2,988 | 1,747 | 13% |
| Net financial items | - | - | - | -222 | -222 | |
| Profit before tax | 1,453 | 1,815 | 1,466 | -3,210 | 1,525 |
| Other / | |||||||
|---|---|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | Group total | ||
| Solutions | 504 | 780 | 970 | - | 2,254 | ||
| Service | 607 | 504 | 332 | - | 1,443 | ||
| Total | 1,111 | 1,284 | 1,302 | - | 3,697 |
| Total | 906 | 1,262 | 1,367 | - | 3,534 | ||
|---|---|---|---|---|---|---|---|
| Service | 594 | 502 | 302 | - | 1,398 | ||
| Solutions | 312 | 760 | 1,064 | - | 2,136 | ||
| SEK M | Americas | EMEA | APAC | Group-wide | Group total | ||
| Other / |
| SEK M | Americas | EMEA | APAC | Group-wide | Group total |
|---|---|---|---|---|---|
| Solutions | 769 | 1,421 | 1,695 | - | 3,885 |
| Service | 1,169 | 1,006 | 646 | - | 2,821 |
| Total | 1,938 | 2,427 | 2,341 | - | 6,707 |
| SEK M | Americas | EMEA | APAC | Group-wide | Group total |
|---|---|---|---|---|---|
| Solutions | 629 | 1,375 | 1,683 | - | 3,687 |
| Service | 1,221 | 995 | 611 | - | 2,828 |
| Total | 1,851 | 2,370 | 2,294 | - | 6,515 |
| SEK M | Other / | |||||
|---|---|---|---|---|---|---|
| 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 |
| Other / | |||||
|---|---|---|---|---|---|
| SEK M | Americas | EMEA | APAC | Group-wide | Group total |
| Solutions | 1,703 | 3,173 | 3,497 | - | 8,373 |
| Service | 2,273 | 2,025 | 1,284 | - | 5,581 |
| Total | 3,976 | 5,198 | 4,781 | - | 13,955 |
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.
| Oct 31, 2021 | Oct 31, 2020 | Apr 30, 2021 | |||||
|---|---|---|---|---|---|---|---|
| SEK M | Carrying amount |
Fair value |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
|
| Long-term interest-bearing liabilities | 3,050 | 3,208 | 4,983 | 5,357 | 3,043 | 3,250 | |
| Short-term interest-bearing liabilities | 1,520 | 1,521 | 879 | 878 | 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 3: Data not based on observable market data
| SEK M | Level | Oct 31, 2021 | Oct 31, 2020 | Apr 30, 2021 |
|---|---|---|---|---|
| FINANCIAL ASSETS | ||||
| Financial assets measured at fair value through profit or loss: | ||||
| Derivative financial instruments – non-hedge accounting | 2 | 64 | 38 | 32 |
| Short-term investments classified as cash equivalents | 1 | 3 | 3,132 | 792 |
| Financial assets measured at fair value through other | ||||
| comprehensive income: | ||||
| Equity instruments | 1 | 58 | 371 | 60 |
| Derivatives used for hedging purposes: | ||||
| Derivative financial instruments – hedge accounting | 2 | 120 | 142 | 212 |
| Total financial assets | 245 | 3,682 | 1,096 | |
| FINANCIAL LIABILITIES | ||||
| Financial liabilities at fair value through profit or loss: | ||||
| Derivative financial instruments – non-hedge accounting | 2 | 20 | 37 | 29 |
| Contingent considerations | 3 | 97 | 163 | 120 |
| Derivatives used for hedging purposes: | ||||
| Derivative financial instruments – hedge accounting | 2 | 37 | 42 | 13 |
| Total financial liabilities | 153 | 242 | 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.
| May - Apr1 | May - Apr | May - Oct | |||||
|---|---|---|---|---|---|---|---|
| 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2020/21 | 2021/22 | |
| Gross order intake, SEK M | 14,064 | 14,493 | 16,796 | 17,735 | 17,411 | 8,078 | 8,025 |
| Net sales, SEK M | 10,704 | 11,573 | 13,555 | 14,601 | 13,763 | 6,515 | 6,707 |
| Order backlog, SEK M | 22,459 | 27,974 | 32,003 | 34,689 | 33,293 | 33,168 | 34,076 |
| Operating result, SEK M | 598 | 1,845 | 1,696 | 1,657 | 1,906 | 893 | 734 |
| Operating margin, % | 5.6 | 15.9 | 12.5 | 11.3 | 13.9 | 13.7 | 10.9 |
| Shareholders' equity, SEK M 2 | 6,774 | 6,987 | 7,779 | 8,113 | 8,197 | 7,999 | 8,143 |
| Return on shareholders' equity, % | 2 | 22 | 17 | 14 | 16 | 16 | 14 |
| Net debt, SEK M | 1,889 | 803 | 439 | 1,632 | 774 | 1,949 | 1,773 |
| Operational cash conversion, % | 145 | 95 | 61 | 35 | 82 | 50 | 19 |
| Average number of employees | 3,581 | 3,702 | 3,798 | 4,117 | 4,194 | 4,073 | 4,522 |
1 Calculation based on IAS18
2 Attributable to Parent Company shareholders
| May - Apr1 | May - Apr | May - Oct | |||||
|---|---|---|---|---|---|---|---|
| 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2020/21 | 2021/22 | |
| Earnings per share | |||||||
| before dilution, SEK | 0.33 | 3.53 | 3.14 | 2.84 | 3.28 | 1.55 | 1.33 |
| after dilution, SEK | 0.33 | 3.53 | 3.14 | 2.84 | 3.28 | 1.55 | 1.33 |
| Cash flow per share | |||||||
| before dilution, SEK | 2.69 | 3.79 | 2.48 | -0.74 | 5.05 | 0.56 | -1.26 |
| after dilution, SEK | 2.69 | 3.79 | 2.48 | -0.74 | 5.05 | 0.56 | -1.26 |
| Shareholders' equity per share | |||||||
| before dilution, SEK | 17.73 | 18.29 | 20.36 | 21.23 | 21.45 | 20.93 | 21.31 |
| after dilution, SEK | 17.73 | 18.29 | 20.36 | 21.23 | 21.45 | 20.93 | 21.31 |
| Average number of shares | |||||||
| before dilution, 000s | 381,306 | 382,027 | 382,027 | 382,062 | 382,083 | 382,083 | 382,083 |
| after dilution, 000s | 381,306 | 382,027 | 382,027 | 382,062 | 382,083 | 382,083 | 382,083 |
| Number of shares at closing | |||||||
| before dilution, 000s 2 | 382,027 | 382,027 | 382,027 | 382,083 | 382,083 | 382,083 | 382,083 |
| after dilution, 000s | 382,027 | 382,027 | 382,027 | 382,083 | 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 October 31, 2021).
| 2019/20 | 2020/21 | 2021/22 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK M | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
| Gross order intake | 4,036 | 4,276 | 5,032 | 4,451 | 3,627 | 3,954 | 5,379 | 3,980 | 4,045 |
| Net sales | 3,709 | 3,656 | 4,008 | 2,981 | 3,534 | 3,581 | 3,667 | 3,009 | 3,697 |
| Operating result | 321 | 443 | 658 | 335 | 559 | 468 | 545 | 201 | 533 |
| Cash flow from operating activities | 419 | -21 | 1,244 | 211 | 535 | 690 | 1,114 | -81 | 325 |
| 2019/20 | 2020/21 | 2021/22 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| % | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
| Americas | 29 | -43 | 0 | 66 | -12 | 41 | 13 | - 7 |
16 |
| EMEA | -21 | 9 | -17 | -20 | 20 | -17 | 7 | 0 | 3 |
| APAC | 23 | - 6 |
-13 | -12 | -12 | 8 | 46 | - 4 |
19 |
| Group | 5 | -11 | -10 | 4 | - 2 |
2 | 18 | - 4 |
12 |
| Q2 | First six months | |||
|---|---|---|---|---|
| SEK M | 2021/22 | 2020/21 | 2021/22 | 2020/21 |
| R&D, net | 178 | -18 | 254 | -53 |
| Capitalization | 288 | 144 | 513 | 293 |
| Amortization | -111 | -162 | -259 | -346 |
| Other, net | - 1 |
- 1 |
- 2 |
- 2 |
| Total, net | 176 | -19 | 253 | -56 |
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.
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 currency are presented. The schedules below present growth based on constant currency reconciled to the total growth reported in accordance with IFRS.
| Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| Americas EMEA |
APAC | total | ||||||
| % | SEK M | % | SEK M | % | SEK M | % | SEK M | |
| Q2 2021/22 vs. Q2 2020/21 | ||||||||
| Change based on constant currency | 16 | 148 | 3 | 45 | 19 | 246 | 12 | 440 |
| Currency effects | 1 | 13 | - 2 |
-27 | - 1 |
- 8 |
- 1 |
-22 |
| Reported change | 17 | 161 | 1 | 19 | 19 | 238 | 12 | 418 |
| Q2 2020/21 vs. Q2 2019/20 | ||||||||
| Change based on constant currency | -12 | -139 | 20 | 248 | -12 | -188 | - 2 |
-78 |
| Currency effects | -11 | -138 | - 6 |
-76 | - 7 |
-117 | - 8 |
-331 |
| Reported change | -23 | -277 | 14 | 172 | -19 | -305 | -10 | -410 |
| May - Oct 2021/22 vs. May - Oct 2020/21 | ||||||||
| Change based on constant currency | 1 | 20 | 2 | 47 | 7 | 185 | 3 | 252 |
| Currency effects | - 5 |
-121 | - 3 |
-96 | - 3 |
-88 | - 4 |
-305 |
| Reported change | - 4 |
-102 | - 2 |
-48 | 4 | 97 | - 1 |
-53 |
| May - Oct 2020/21 vs. May - Oct 2021/19 | ||||||||
| Change based on constant currency | 25 | 562 | - 3 |
-97 | -12 | -386 | 1 | 79 |
| Currency effects | - 8 |
-174 | - 4 |
-110 | - 4 |
-143 | - 5 |
-428 |
| Reported change | 17 | 388 | - 7 |
-207 | -17 | -530 | - 4 |
-349 |
| Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| Americas | EMEA | APAC | total | |||||
| % | SEK M | % | SEK M | % | SEK M | % | SEK M | |
| Q2 2021/22 vs. Q2 2020/21 | ||||||||
| Change based on constant currency | 24 | 219 | 6 | 70 | - 2 |
-34 | 7 | 256 |
| Currency effects | - 2 |
-14 | - 4 |
-48 | - 2 |
-31 | - 3 |
-93 |
| Reported change | 23 | 205 | 2 | 22 | - 5 |
-64 | 5 | 163 |
| Q2 2020/21 vs. Q2 2019/20 | ||||||||
| Change based on constant currency | -16 | -196 | - 4 |
-60 | 32 | 358 | 3 | 102 |
| Currency effects | - 9 |
-107 | - 5 |
-68 | - 9 |
-101 | - 7 |
-276 |
| Reported change | -25 | -303 | - 9 |
-128 | 23 | 256 | - 5 |
-175 |
| May - Oct 2021/22 vs. May - Oct 2020/21 | ||||||||
| Change based on constant currency | 10 | 179 | 6 | 70 | 7 | 156 | 7 | 481 |
| Currency effects | - 5 |
-91 | - 4 |
-48 | - 5 |
-109 | - 4 |
-289 |
| Reported change | 5 | 88 | 2 | 22 | 2 | 47 | 3 | 192 |
| May - Oct 2020/21 vs. May - Oct 2021/19 | ||||||||
| Change based on constant currency | -10 | -232 | - 3 |
-77 | 11 | 246 | - 1 |
-63 |
| Currency effects | - 6 |
-135 | - 4 |
-101 | - 6 |
-123 | - 5 |
-359 |
| Reported change | -17 | -368 | - 7 |
-178 | 6 | 123 | - 6 |
-422 |
EBITDA is used for the calculation of operational cash conversion and the net debt/EBITDA ratio.
| SEK M | Q2 2020/21 | Q3 2020/21 | Q4 2020/21 | Q1 2021/22 | Q2 2021/22 |
|---|---|---|---|---|---|
| Operating result/EBIT | 559 | 468 | 545 | 201 | 533 |
| Amortization intangible assets: | |||||
| Capitalized development costs | 163 | 167 | 169 | 149 | 113 |
| Assets relating business combinations | 30 | 29 | 28 | 29 | 29 |
| Depreciation fixed assets | 95 | 96 | 111 | 100 | 105 |
| EBITDA | 846 | 759 | 853 | 479 | 780 |
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 | Oct 31, 2020 | Jan 31, 2021 | Apr 30, 2021 | Jul 31, 2021 | Oct 31, 2021 |
|---|---|---|---|---|---|
| Profit before tax (12 months rolling) | 1,751 | 1,773 | 1,630 | 1,512 | 1,525 |
| Financial expenses (12 months rolling) | 268 | 270 | 295 | 276 | 245 |
| Profit before tax plus financial expenses | 2,019 | 2,043 | 1,924 | 1,788 | 1,770 |
| Total assets | 25,497 | 25,464 | 24,844 | 24,201 | 23,843 |
| Deferred tax liabilities | -560 | -566 | -515 | -468 | -482 |
| Long-term provisions | -255 | -264 | -224 | -215 | -218 |
| Other long-term liabilities | -92 | -81 | -71 | -88 | -82 |
| Accounts payable | -987 | -947 | -1,016 | -1,145 | -1,111 |
| Advances from customers | -3,881 | -3,753 | -3,759 | -3,712 | -3,802 |
| Prepaid income | -1,985 | -2,052 | -2,082 | -2,021 | -1,946 |
| Accrued expenses | -1,668 | -1,723 | -1,837 | -1,550 | -1,603 |
| Current tax liabilities | -188 | -210 | -137 | -166 | -199 |
| Short-term provisions | -182 | -169 | -174 | -159 | -181 |
| Derivative financial instruments | -67 | -41 | -35 | -34 | -40 |
| Other current liabilities | -665 | -628 | -559 | -406 | -401 |
| Capital employed | 14,968 | 15,030 | 14,435 | 14,238 | 13,777 |
| Average capital employed (last five quarters) | 15,401 | 15,656 | 15,735 | 15,088 | 14,490 |
| Return on capital employed | 13% | 13% | 12% | 12% | 12% |
Return on shareholders' equity measures the return generated on shareholders' capital invested in the company.
| SEK M | Q2 2020/21 | Q3 2020/21 | Q4 2020/21 | Q1 2021/22 | Q2 2021/22 |
|---|---|---|---|---|---|
| Net income (12 months rolling) | 1,306 | 1,320 | 1,254 | 1,164 | 1,173 |
| Average shareholders' equity excluding | |||||
| non-controlling interests (last five quarters) | 8,007 | 8,070 | 8,069 | 8,121 | 8,185 |
| Return on shareholders' equity | 16% | 16% | 16% | 14% | 14% |
Cash flow is a focus area for management. The operational cash conversion shows the relation between cash flow from operating activities and EBITDA.
| SEK M | Q2 2020/21 | Q3 2020/21 | Q4 2020/21 | Q1 2021/22 | Q2 2021/22 |
|---|---|---|---|---|---|
| Cash flow from operating activities |
535 | 690 | 1,114 | -81 | 325 |
| EBITDA | 846 | 759 | 853 | 479 | 780 |
| Operational cash conversion | 63% | 91% | 130% | -17% | 42% |
In order to optimize cash generation, management focuses on working capital and reducing lead times between orders booked and cash received. Working capital
| Oct 31 | Oct 31 | Apr 30 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2021 |
| Working capital assets | |||
| Inventories | 2,416 | 2,455 | 2,283 |
| Accounts receivable | 3,037 | 3,218 | 3,281 |
| Accrued income | 1,988 | 1,929 | 1,772 |
| Other operating receivables | 1,310 | 1,368 | 1,116 |
| Sum working capital assets | 8,751 | 8,970 | 8,451 |
| Working capital liabilities | |||
| Accounts payable | 1,111 | 987 | 1,016 |
| Advances from customers | 3,802 | 3,881 | 3,759 |
| Prepaid income | 1,946 | 1,985 | 2,082 |
| Accrued expenses | 1,603 | 1,668 | 1,837 |
| Short-term provisions | 181 | 182 | 174 |
| Other current liabilities | 401 | 665 | 559 |
| Sum working capital liabilities | 9,044 | 9,368 | 9,428 |
| Net working capital | -292 | -398 | -977 |
| % of 12 months net sales | -2% | -3% | -7% |
Days Sales Outstanding was negative 19 days on October 31, 2021 (negative 21 days per April 30, 2021).
| Oct 31 | Oct 31 | Apr 30 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2021 |
| North and South America | -63 | -71 | -72 |
| Europe, Middle East and Africa | 52 | 54 | 57 |
| Asia Pacific | -54 | -53 | -64 |
| Group | -19 | -19 | -21 |
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 | Oct 31, 2020 | Jan 31, 2021 | Apr 30, 2021 | Jul 31, 2021 | Oct 31, 2021 |
|---|---|---|---|---|---|
| Long-term interest-bearing liabilities | 4,983 | 4,950 | 3,043 | 3,067 | 3,050 |
| Short-term interest-bearing liabilities | 879 | 831 | 2,141 | 1,769 | 1,520 |
| Cash and cash equivalents and short-term | |||||
| investments | -3,913 | -4,640 | -4,411 | -3,652 | -2,796 |
| Net debt | 1,949 | 1,140 | 774 | 1,183 | 1,773 |
| EBITDA (12 months rolling) | 3,252 | 3,265 | 3,110 | 2,938 | 2,871 |
| Net debt/EBITDA ratio | 0.60 | 0.35 | 0.25 | 0.40 | 0.62 |
Elekta will host a web conference at 10:00-11:00 CET on November 25 with President and CEO Gustaf Salford, and CFO Johan Adebäck. To take part of the presentation please dial the numbers or watch via the web link below.
Sweden: +46 8 566 427 06 United Kingdom: +44 333 300 9035 United States: +1 646 722 4902
https://elekta-qreports.creo.se/211125/
| Interim report, Q3, May-Jan 2021/22 | Feb 24, 2022 |
|---|---|
| Year-end report, May-Apr 2021/22 | May 25, 2022 |
CFO +46 70 873 33 21 [email protected]
Head of Investor Relations +46 76 611 76 25 [email protected]
IR Manager +46 73 719 46 22 [email protected]
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:
Elekta AB (publ) 556170-4015
Kungstensgatan 18 Box 7593 SE 103 93 Stockholm Sweden
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