Earnings Release • May 28, 2021
Earnings Release
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Year-end report, May–April 2020/21
• The Board of Directors proposes a dividend of SEK 2.20 (1.80) per share (in two instalments) for the fiscal year 2020/21
| Q4 | Full-year | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2020/21 | 2019/20 | Δ | 2020/21 | 2019/20 | Δ | ||
| Gross order intake | 5,379 | 5,032 | 18% | 3 | 17,411 | 17,735 | 6% | 3 |
| Net sales | 3,667 | 4,008 | 1% | 3 | 13,763 | 14,601 | 1% | 3 |
| Gross margin | 38.5% | 42.6% | -4.1 ppts | 40.8% | 42.0% | -1.2 ppts | ||
| EBITA | 743 | 886 | -16% | 2,709 | 2,521 | 7% | ||
| EBITA margin | 20.3% | 22.1% | -1.8 ppts | 19.7% | 17.3% | 2.4 ppts | ||
| EBIT | 545 | 658 | -17% | 1,906 | 1,657 | 15% | ||
| Cash flow 1 | 818 | 1,026 | -20% | 1,706 | 252 | 576% | ||
| Earnings per share, SEK2 | 0.89 | 1.07 | -16% | 3.28 | 2.84 | 16% |
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 May 28, 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.
During Elekta's fourth quarter, we drove strong order growth in all regions – both from market growth and market share gain – and we received our 100th Unity order. Installation volumes were similar to levels in the fourth quarter last year, still impacted by reduced access to hospitals, especially in emerging markets due to Covid. When summarizing the full year, we showed good order growth in a pandemic affected market, improved our EBITA on stable volumes and delivered our best annual cash flow ever.
The market situation continued to improve in the fourth quarter. Many healthcare systems are starting to recover from the pandemic and investing to manage the cancer care needs that have not been met due to Covid. For Elekta the shift resulted in strong demand and order intake for our solutions, and we gained market share across all regions.
We see a recovery of installations in mature markets, but emerging markets are still lagging and expected to gradually improve in coming quarters. Our revenue in the quarter is in line with last year's levels. Gross margin continued to be negatively impacted by currency effects, higher supply chain and service costs due to the pandemic. Due to the rise in market activity our sales and marketing expenses increased compared to the last quarters. However, going forward, we expect to continue at lower expense levels in areas such as travel and conferences due to further digitalization and new ways of working. During the past year we have focused on building stronger processes to improve our stability in revenue and cash flow, and it is encouraging to see a more stable cash conversion between quarters. This year's cash flow was the best ever and we had a cash conversion of 82 percent.
We continue to successfully drive our strategic focus on Precision Radiation Medicine and simultaneously building strong partnerships across the cancer care continuum. I am very pleased to see the interest and demand for our recently launched solutions: Harmony, Elekta Studio, MOSAIQ 3 and Lightning software. During the last year, Elekta strengthened the product portfolio across all our business lines and we will continue to invest in our solutions including our software architecture to further strengthen long term growth. Service is a key part of our business, especially during Covid, and we have seen our customer satisfaction score increase significantly during the year.
The Unity progressed well during the quarter, and we have now reached the important milestone of more than 100 Unity orders. It is inspiring to see the volume of clinical evidence in the Momentum study grow as we continue to advance the knowledge and application of MR-guided radiation therapy globally.
During the next quarter we anticipate the overall market situation to continue to recover and our ability to install systems at customer sites to improve. We are convinced that long-term trends will support growth and investment in high-end radiation therapy equipment. At our Capital Markets Day, we will present our strategic priorities and explain the drivers behind the mid-term outlook.
I would like to thank all our customers, partners, and employees who have done a tremendous job under very difficult circumstances to secure continued cancer treatments for patients globally during the last year.
Gustaf Salford President and CEO
milestone achieved in Q4
The pandemic and the ensuing delays in orders for radiation therapy equipment has created a pent-up demand, which will be relieved once countries and regions return to more normal conditions. The improvements in customers willingness to discuss and close orders seen in the previous quarter carried through to and further improved in the fourth quarter. Order growth in the fourth quarter was broad based with almost all business lines and regions growing strongly and with emerging markets being particularly strong. As confirmation of Elekta Unity's attractiveness, we signed the 100th order in the quarter. In total, gross order intake grew by 18 percent compared to the fourth quarter last year based on constant currency. Order backlog increased in constant currency, but as converted to closing exchange rates the order backlog amounted to SEK 33,293 M, compared to SEK 34,689 M on April 30, 2020. The negative translation effect amounted to SEK 3,524 M.
| Q4 | Full-Year | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2020/21 2019/20 | 1 Δ |
Δ | 2020/21 | 2019/20 | 1 Δ |
Δ | |
| North and South | ||||||||
| America | 1,947 | 1,963 | 13% | -1% | 5,579 | 5,024 | 23% | 11% |
| Europe, Middle East | ||||||||
| and Africa | 1,909 | 1,906 | 7% | 0% | 6,353 | 7,029 | -4% | -10% |
| Asia Pacific | 1,523 | 1,163 | 46% | 31% | 5,479 | 5,682 | 5% | -4% |
| Group | 5,379 | 5,032 | 18% | 7% | 17,411 | 17,735 | 6% | -2% |
1 Based on constant currency.
Orders grew strongly by 13 percent in the fourth quarter, based on constant currency, with both North and South America growing. In North America the market is returning to more normal conditions on the back of a successful vaccination campaign. Capital equipment spending is returning, and customer access is steadily improving. Growth in North American orders was evenly distributed across the product portfolio. In South America the order situation also improved with strong performance in Colombia and Chile and in the Linac and Neuro business lines.
Orders grew 7 percent based on constant currency with very strong performance in Middle East and Africa and solid development in Europe, despite the market contracting overall. Some mature European countries are showing signs of recovery from the pandemic with the launch of public tenders. The European growth was mainly driven by Germany and Belgium as well as southern European markets and there was a strong demand for Harmony. The Middle East had good order intake with strong growth in the United Arab Emirates and Yemen. In Africa development was strong with business lines Linac and Brachy leading the way and with South Africa and West African countries performing strongly, including the first order to Burkina Faso.
Orders grew a very strong 46 percent in constant currency in Asia Pacific. The continuing recovery in orders was broad based with many markets contributing, but mainly driven by very strong performance in China and India. The Chinese public market continues to be the main growth driver in the region. China's strong growth was related to most business lines, but particularly Linac. It was also driven by large orders from the General Hospital of People's Liberation Army. A number of East Asian countries and New Zealand contributed to the increased order intake in the quarter.
Gross order intake Group
Gross order intake North and South America
Gross order intake Europe, Middle East and Africa
In contrast to the clear improvement in orders, sales continued to be negatively affected by the pandemic. This was mainly seen in Solutions sales reflecting the time lag between countries opening up, and product shipments and installations returning to more normal levels. Based on constant currency net sales increased by 1 percent in the fourth quarter. In SEK net sales decreased by 9 percent to SEK 3,667 M (4,008).
Service grew 6 percent based on constant currency in the quarter returning to more normal growth levels after the negative impact of the pandemic in the third quarter. Solutions sales declined by 2 percent in constant currency, with positive development in the Linac and Neuro business lines. Geographically, sales in Europe, Middle East and Africa increased in the quarter.
| Q4 | Full-year | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2020/21 2019/20 | 1 Δ |
Δ | 2020/21 | 2019/20 | 1 Δ |
Δ | |
| North and | ||||||||
| South America | 1,079 | 1,255 | -2% | -14% | 3,888 | 4,482 | -4% | -13% |
| Europe, Middle | ||||||||
| East and Africa 1,522 | 1,571 | 3% | -3% | 5,140 | 5,547 | -2% | -7% | |
| Asia Pacific | 1,066 | 1,182 | 0% | -10% | 4,735 | 4,572 | 11% | 4% |
| Group | 3,667 | 4,008 | 1% | -9% | 13,763 | 14,601 | 1% | -6% |
1 Based on constant currency.
In North and South America net sales declined 2 percent based on constant currency. The U.S. came in at 0 percent. The sales recovery in North America was slower than for orders with longer time between recovery and product shipment and installation. In South America the situation was still challenging with a clear negative effect due to the pandemic. Sales declined based on negative development in several countries such as Argentina and Colombia.
Net sales grew by 3 percent in constant currency in Europe, Middle East and Africa. Net sales in Europe were strong, with Italy, France and Germany showing good growth in installations. Emerging markets were more challenging with negative development due to the pandemic in Africa and the Middle East. The decline was most significant in the Middle East with fewer installations in some markets such as Turkey. Despite a challenging situation in Africa, Morocco showed good revenue growth.
Net sales in Asia Pacific were flat based on constant currency with sales growing in China, India and Japan. In Japan, sales were particularly strong in the quarter with double digit growth. Chinese installations continued to show good momentum. Outside these markets Covid continued to have a negative effect on sales.
Net sales by RTM
Double-digit growth rate in Japan
The pandemic has negatively impacted sales in the year. Solutions sales declined 1 percent and was also relatively volatile between quarters. Service sales was stable, although also negatively affected by Covid, and grew 5 percent. The MR-Linac and Neuro business lines showed growth in the year with the other business lines posting small declines. At the end of the period Elekta had an installed base of approximately 6,650 devices, of which approximately 4,750 units are Linacs, MR-Linacs or Leksell Gamma Knifes.
| Q4 | Full-year | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2020/21 | 2019/20 | 1 Δ |
Δ | 2020/21 | 2019/20 | 1 Δ |
Δ |
| Solutions | 2,254 | 2,524 | -2% -11% | 8,175 | 8,846 | -1% | -8% | |
| Service | 1,413 | 1,485 | 6% | -5% | 5,588 | 5,755 | 5% | -3% |
| Total | 3,667 | 4,008 | 1% | -9% | 13,763 | 14,601 | 1% | -6% |
1 Based on constant currency.
Gross margin was 40.8 percent (42.0) for the full year. The decrease compared to last year was to a large part explained by negative impact from currency, but also higher supply-chain costs and higher cost to serve our installed base during the pandemic.
On an annual basis operating expenses decreased by 6 percent in constant currencies. The decrease was driven by lower selling expenses due to Covid-19 cost control measures. R&D expenditure decreased during the year, although adjusted for the net of capitalization and amortization, see investments and amortization/depreciation section below, R&D costs increased some and corresponded to 11 percent (10) of net sales. In the fourth quarter operating expense was impacted by higher personnel costs from incentives and unused vacations, as well as one-off legal fee for multiyear process of SEK 35 M from the successful conclusion of the humediQ litigation.
EBITA was SEK 2,709 M (2,521) representing a margin of 19.7 percent (17.3). The improvement in EBITA margin is explained by lower selling expenses and R&D costs. Operating result (EBIT) was SEK 1,906 M (1,657).
Net financial items amounted to SEK -277 M (-203). The key driver was lower interest income due to lower interest rates and increased interest expenses as a result of a higher level of gross debt. In addition, a USD 50 M loan was repaid in advance, which added an interest expense of about SEK 40 M. Profit before tax amounted to SEK 1,630 M (1,454) and tax amounted to SEK -377 M (-370), representing a tax rate of 23.1 percent (25.4).
Net income amounted to SEK 1,253 M (1,084) and earnings per share amounted to SEK 3.28 (2.84) before and after dilution. Return on shareholders' equity amounted to 16 percent (14) and return on capital employed was 12 percent (12).
11% R&D expenditure of net sales
The net of capitalized and amortized development costs in the R&D function decreased to SEK -2 M (-176). This was explained by higher capitalization levels for R&D as more projects reached this stage of the development compared to last year, but also lower amortizations.
| Q4 | Full-year | |||
|---|---|---|---|---|
| SEK M | 2020/21 | 2019/20 | 2020/21 | 2019/20 |
| R&D, net | 51 | -1 | -2 | -176 |
| Capitalization | 218 | 188 | 676 | 555 |
| Amortization | -167 | -188 | -678 | -731 |
| Other, net | -2 | -4 | -6 | -7 |
| Total, net | 49 | -4 | -9 | -183 |
Investments in intangible assets amounted to SEK 678 M (566). The increase was mainly related to the acquisition of Kaiku Health. Investments in tangible assets were SEK 167 M (196). Amortization of intangible assets and depreciation of tangible fixed assets amounted to a total of SEK 1,204 M (1,275).
Cash flow from operating activities was SEK 2,551 M (1,014). Cash flow after continuous investments was SEK 1,706 M (252). The strong improvement in cash flow was mainly related to lower increase in working capital compared to last year, see working capital section below. In addition, earnings improved compared to last year.
Cash flow (extract)
| Q4 | Full-year | ||||
|---|---|---|---|---|---|
| SEK M | 2020/21 | 2019/20 | 2020/21 | 2019/20 | |
| Operating cash flow | 667 | 973 | 2,660 | 2,526 | |
| Change in w orking capital |
447 | 272 | -109 | -1,512 | |
| Cash flow from operating | |||||
| activities | 1,114 | 1,244 | 2,551 | 1,014 | |
| Continuous investments | -296 | -218 | -845 | -761 | |
| Cash flow after continuous | |||||
| investments | 818 | 1,026 | 1,706 | 252 | |
| Operational cash conversion | 130% | 123% | 82% | 35% |
82% operational cash conversion
Net working capital decreased by SEK 98 M to SEK -977 M (-879) corresponding to -7 percent (-6) of net sales for the year. Compared to last year most working capital items decreased, although accrued income increased, which was mainly related to MR-Linac and projects in China, Japan and Europe. The positive impacts from inventory were related to a normalization after previous build-up. 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 26.
Cash and cash equivalents and short-term investments amounted to SEK 4,411 M (6,470). Interest-bearing liabilities excluding lease liabilities amounted to SEK 5,184 M (8,102). Net debt amounted to SEK 774 M (1,632). Net debt in relation to EBITDA was 0.25 (0.56). The average maturity of interest-bearing liabilities was 2.9 years.
| Apr 30 | Apr 30 | Jan 31 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2021 |
| Long-term interest-bearing liabilities | 3,043 | 7,101 | 4,950 |
| Short-term interest-bearing liabilities | 2,141 | 1,001 | 831 |
| Cash and cash equivalents and short-term investments | -4,411 | -6,470 | -4,640 |
| Net debt | 774 | 1,632 | 1,140 |
| Long-term lease liabilities | 854 | 1,043 | 849 |
| Short-term lease liabilities | 200 | 213 | 188 |
| Net debt including lease liabilities | 1,828 | 2,888 | 2,178 |
The exchange rate effect from the translation of cash and cash equivalents amounted to SEK -321 M (-5). The translation difference in interest-bearing liabilities amounted to SEK -216 M (25).
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 2019/20, page 30.
Due to ongoing uncertainties related to the development of the pandemic, Elekta has not published an outlook for the fiscal year 2020/21.
Covid-19 continued to have a negative impact on Elekta's business throughout the year. 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 supply chain has benefitted from a dual source strategy and the fact that Elekta and its suppliers being labelled essential business by relevant government authorities. There are no major short-term supply issues.
Elekta has not received any government grants in Sweden. On a global basis Elekta has received government grants amounting to approximately SEK 60 M for the full year of 2020/21.
In March, Elekta announced that the London Court of International Arbitration (LCIA) has awarded in favor of Elekta in a dispute with Livian GmbH (formerly humediQ GmbH). The arbitration is now finally settled whereby all claims against Elekta group companies are rejected in full.
In March, Elekta announced that its latest solution for proton therapy, Monaco® treatment planning for protons, has received 510(k) clearance from the U.S. Food and Drug Administration (FDA). Monaco is a component of Elekta's Treatment Management Solution, which provides a full-featured environment for delivering proton therapy.
In February, Johan Adebäck was appointed as permanent Chief Financial Officer with immediate effect. He has held the position of Acting CFO since June 2, 2020. Prior to the Acting CFO position, Johan Adebäck had been Group Treasurer at Elekta since 2004, responsible for Treasury, Taxes, Customer Financing, Operational accounting and Customer Credit Risk.
During the fourth quarter Ioannis Panagiotelis, Chief Marketing and Sales Officer and EVP for APAC, Japan and South America, left Elekta and the Executive Management team.
Find more detailed information about our policies in the Annual Report 2019/20
In February, Elekta announced that it has, for third year straight, been recognized as one of the World's Most Ethical Companies® by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices. The honor is bestowed upon companies that influence the business community and societies around the world in order to drive positive change.
In February, Elekta signed an agreement to acquire the oncology division of its previous distributor and announced that it will establish a permanent office in Cairo, Egypt, to address the shortage of radiotherapy delivery systems and software solutions that play an integral part in treating cancer and brain disorders. Closing of the acquisition is intended to take place in the first quarter of fiscal year 2021/22.
See significant events above.
In the ongoing patent infringement dispute in the US and Germany against ZAP Surgical Systems, Inc, the US patent was reverted back to the US Patent Office's Patent Trial and Appeal Board (PTAB), resulting in a finding of partial invalidity of the parts of the patent that were challenged. Elekta is currently reviewing whether to appeal the PTAB decision. The US decision should have no bearing on the parallel infringement suit in Germany.
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.
The average number of employees during the period was 4,194 (4,117). The average number of employees in the Parent Company was 45 (41).
Total number of registered shares on April 30, 2021 was 383,568,409 of which 14,980,769 were A-shares and 368,587,640 B-shares. On April 30, 2021 1,485,289 shares were treasury shares held by Elekta.
Stockholm, May 28, 2021
Gustaf Salford President and CEO
This report has not been reviewed by the Company's auditors.
| Q4 | Full-year | |||
|---|---|---|---|---|
| SEK M | 2020/21 | 2019/20 | 2020/21 | 2019/20 |
| Net sales | 3,667 | 4,008 | 13,763 | 14,601 |
| Cost of products sold | -2,256 | -2,301 | -8,153 | -8,464 |
| Gross income | 1,411 | 1,708 | 5,610 | 6,138 |
| Selling expenses | -314 | -380 | -1,143 | -1,444 |
| Administrative expenses | -292 | -250 | -1,086 | -1,093 |
| R&D expenses | -344 | -395 | -1,486 | -1,657 |
| Other operating income and expenses | -12 | 5 8 |
-85 | 1 1 |
| Exchange rate differences | 9 7 |
-82 | 9 7 |
-298 |
| Operating result | 545 | 658 | 1,906 | 1,657 |
| Financial items, net | -108 | -77 | -277 | -203 |
| Profit before tax | 437 | 581 | 1,630 | 1,454 |
| Income taxes | -97 | -173 | -377 | -370 |
| Net income | 341 | 407 | 1,253 | 1,084 |
| Net income attributable to | ||||
| Parent Company shareholders | 341 | 408 | 1,254 | 1,084 |
| Non-controlling interests | 0 | 0 | -1 | 0 |
| Average number of shares | ||||
| Before dilution, millions | 382 | 382 | 382 | 382 |
| After dilution, millions | 382 | 382 | 382 | 382 |
| Earnings per share | ||||
| Before dilution, SEK | 0.89 | 1.07 | 3.28 | 2.84 |
| After dilution, SEK | 0.89 | 1.07 | 3.28 | 2.84 |
| Q4 | Full-year | |||
|---|---|---|---|---|
| SEK M | 2020/21 | 2019/20 | 2020/21 | 2019/20 |
| Net income | 341 | 407 | 1,253 | 1,084 |
| Other comprehensive income: | ||||
| Items that will not be reclassified to the income statement: | ||||
| Remeasurements of defined benefit pension plans | - 3 |
- 8 |
- 3 |
- 8 |
| Change in fair value of equity instruments | - 6 |
-107 | 206 | -104 |
| Tax | 3 | 25 | -43 | 24 |
| Total items that will not be reclassified to the income statement | - 6 |
-90 | 160 | -88 |
| Items that subsequently may be reclassified to the income statement: | ||||
| Revaluation of cash flow hedges |
-52 | -36 | 231 | 37 |
| Translation differences from foreign operations | 30 | - 1 |
-838 | 30 |
| Tax relating to revaluation of cash flow hedges |
12 | 8 | -48 | - 7 |
| Total items that subsequently may be reclassified | ||||
| to the income statement | - 9 |
-30 | -654 | 60 |
| Other comprehensive income for the period | -15 | -120 | -494 | -27 |
| Total comprehensive income for the period | 326 | 287 | 759 | 1,057 |
| Comprehensive income attributable to: | ||||
| Parent Company shareholders | 327 | 287 | 760 | 1,057 |
| Non-controlling interests | - 1 |
0 | - 1 |
0 |
| Result overview | Q4 | Full-year | ||
|---|---|---|---|---|
| SEK M | 2020/21 | 2019/20 | 2020/21 | 2019/20 |
| Operating result/EBIT | 545 | 658 | 1,906 | 1,657 |
| Amortizations of intangible assets: | ||||
| Capitalized development costs | 169 | 199 | 685 | 746 |
| Assets relating to business combinations | 28 | 29 | 118 | 119 |
| EBITA | 743 | 886 | 2,709 | 2,521 |
| Apr 30 | Apr 30 | |
|---|---|---|
| SEK M | 2021 | 2020 |
| Non-current assets | ||
| Intangible assets | 8,779 | 9,469 |
| Right-of-use assets | 953 | 1,156 |
| Other tangible fixed assets | 897 | 968 |
| Financial assets | 533 | 748 |
| Deferred tax assets | 436 | 504 |
| Total non-current assets | 11,597 | 12,845 |
| Current assets | ||
| Inventories | 2,283 | 2,748 |
| Accounts receivable | 3,281 | 3,379 |
| Accrued income | 1,772 | 1,526 |
| Other current receivables | 1,502 | 1,505 |
| Cash and cash equivalents | 4,411 | 6,407 |
| Total current assets | 13,247 | 15,566 |
| Total assets | 24,844 | 28,411 |
| Equity attributable to Parent Company shareholders | 8,197 | 8,113 |
| Non-controlling interests | 0 | 1 |
| Total equity | 8,197 | 8,113 |
| Non-current liabilities | ||
| Long-term interest-bearing liabilities | 3,043 | 7,101 |
| Long-term lease liabilities | 854 | 1,043 |
| Other long-term liabilities | 810 | 853 |
| Total non-current liabilities | 4,707 | 8,997 |
| Current liabilities | ||
| Short-term interest-bearing liabilities | 2,141 | 1,001 |
| Short-term lease liabilities | 200 | 213 |
| Accounts payable | 1,016 | 1,025 |
| Advances from customers | 3,759 | 4,103 |
| Prepaid income | 2,082 | 2,226 |
| Accrued expenses | 1,837 | 1,703 |
| Other current liabilities | 905 | 1,030 |
| Total current liabilities | 11,941 | 11,300 |
| Total equity and liabilities | 24,844 | 28,411 |
| Full-year | ||
|---|---|---|
| SEK M | 2020/21 | 2019/20 |
| Attributable to Parent Company shareholders | ||
| Opening balance | 8,113 | 7,778 |
| Opening balance adjustment due to IFRS 16 | - | -31 |
| Comprehensive income for the period | 760 | 1,057 |
| Incentive programs | 12 | - 3 |
| Dividend | -688 | -688 |
| Total | 8,197 | 8,113 |
| Attributable to non-controlling interests | ||
| Opening balance | 1 | 1 |
| Comprehensive income for the period | - 1 |
0 |
| Total | 0 | 1 |
| Closing balance | 8,197 | 8,113 |
| Q4 | Full-year | |||
|---|---|---|---|---|
| SEK M | 2020/21 | 2019/20 | 2020/21 | 2019/20 |
| Profit before tax | 437 | 581 | 1,630 | 1,454 |
| Amortization and depreciation | 308 | 350 | 1,204 | 1,275 |
| Interest net | 81 | 62 | 204 | 150 |
| Other non-cash items | 44 | 67 | 307 | 54 |
| Interest received and paid | -90 | -54 | -220 | -145 |
| Income taxes paid | -114 | -33 | -465 | -261 |
| Operating cash flow | 667 | 973 | 2,660 | 2,526 |
| Changes in inventories | 158 | 163 | 270 | -116 |
| Changes in operating receivables | 182 | 413 | -772 | -434 |
| Changes in operating liabilities | 107 | -305 | 393 | -962 |
| Change in w orking capital |
447 | 272 | -109 | -1,512 |
| Cash flow from operating activities | 1,114 | 1,244 | 2,551 | 1,014 |
| Investments intangible assets | -218 | -195 | -678 | -566 |
| Investments other assets | -77 | -23 | -167 | -196 |
| Continuous investments | -296 | -218 | -845 | -761 |
| Cash flow after continuous investments | 818 | 1,026 | 1,706 | 252 |
| Short-term investments | 4 | 46 | 60 | -26 |
| Business combinations, divestments and investments in other shares | -42 | -91 | 172 | -511 |
| Cash flow after investments | 781 | 981 | 1,938 | -284 |
| Dividends | -344 | -344 | -688 | -688 |
| Cash flow from other financing activities |
-704 | 3,447 | -2,917 | 3,311 |
| Cash flow for the period | -267 | 4,084 | -1,667 | 2,339 |
| Change in cash and cash equivalents during the period | ||||
| Cash and cash equivalents at the beginning of the period | 4,640 | 2,392 | 6,407 | 4,073 |
| Cash flow for the period |
-267 | 4,084 | -1,667 | 2,339 |
| Exchange rate differences | 37 | -69 | -329 | - 5 |
| Cash and cash equivalents at the end of the period | 4,411 | 6,407 | 4,411 | 6,407 |
| Full-year | ||
|---|---|---|
| SEK M | 2020/21 | 2019/20 |
| Operating expenses | -27 | -131 |
| Financial net | 468 | 218 |
| Income after financial items | 441 | 87 |
| Appropriations | - | 14 |
| Tax | -14 | 36 |
| Net income | 427 | 137 |
| Statement of comprehensive income | ||
| Net income | 427 | 137 |
| Other comprehensive income | - | - |
| Total comprehensive income | 427 | 137 |
| 30 apr | 30 apr | |
|---|---|---|
| Mkr | 2021 | 2020 |
| Anläggningstillgångar | ||
| Immateriellla tillgångar | 46 | 53 |
| Andelar i koncernföretag | 2,590 | 2,251 |
| Fordringar hos koncernföretag | 2,194 | 2,391 |
| Övriga finansiella tillgångar | 94 | 326 |
| Uppskjutna skattefordringar | 27 | 41 |
| Summa anläggningstillgångar | 4,951 | 5,062 |
| Omsättningstillgångar | ||
| Fordringar hos koncernföretag | 2,895 | 4,248 |
| Övriga kortfristiga fordringar | 39 | 81 |
| Likvida medel | 3,421 | 5,387 |
| Summa omsättningstillgångar | 6,355 | 9,716 |
| Summa tillgångar | 11,306 | 14,778 |
| Eget kapital | 2,087 | 2,346 |
| Obeskattade reserver | - | - |
| Långfristiga skulder | ||
| Långfristiga räntebärande skulder | 3,043 | 7,101 |
| Långfristiga avsättningar | 40 | 10 |
| Summa långfristiga skulder | 3,083 | 7,111 |
| Kortfristiga skulder | ||
| Kortfristiga räntebärande skulder | 2,141 | 942 |
| Skulder till koncernföretag | 3,858 | 4,283 |
| Kortfristiga avsättningar | - | 1 |
| Övriga kortfristiga skulder | 137 | 95 |
| Summa kortfristiga skulder | 6,136 | 5,321 |
| Summa eget kapital och skulder | 11,306 | 14,778 |
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 2019/20.
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.
Government grants relate to financial grants from governments, public authorities and similar local, national, or international bodies. These are recognized when there is a reasonable assurance that the grants will be received and that Elekta will comply with the conditions attached to them. Government grants relating to expenses are recognized in the income statement as a deduction of such related expenses. Government grants relating to assets are included in the balance sheet as prepaid income and recognized as income over the useful life of the assets.
Related party transactions are described in note 35 in the Annual Report for 2019/20. No material changes have taken place in relations or transactions with related parties companies compared with the description in the Annual report 2019/20.
In January, Elekta announced that it has sold its 7.3 percent of the out-standing common stock (11,501,597 shares) in ViewRay, Inc. Elekta has no remaining shares in ViewRay after the transaction.
Elekta has treated the acquisition of other shares in ViewRay as equity investment designated as measured at fair value through other comprehensive income with gains and losses remaining in other comprehensive income, without recycling to profit or loss upon derecognition. Therefore, the effect of the divestment remains in other comprehensive income and the result of the divestment is a gain of SEK 208 M before tax for the first nine months 2020/21. The result effect in other comprehensive income during the time of the ownership of the shares in ViewRay, since inception of the investment in Q3 2019/20, is amounting to SEK 101 M before tax.
| Country | Currency | Average rate | Closing rate | ||||
|---|---|---|---|---|---|---|---|
| May - Apr | Apr 30 | ||||||
| 2020/21 | 2019/20 | 1 Δ |
2021 | 2020 | 1 Δ |
||
| Euroland | 1 EUR | 10.293 | 10.681 | -4% | 10.151 | 10.694 | -5% |
| Great Britain | 1 GBP | 11.549 | 12.200 | -5% | 11.682 | 12.278 | -5% |
| Japan | 1 JPY | 0.083 | 0.089 | -7% | 0.077 | 0.092 | -17% |
| United States | 1 USD | 8.764 | 9.637 | -9% | 8.377 | 9.847 | -15% |
1 April 30, 2021 vs April 30, 2020.
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.
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.
| SEK M | North and South America |
Europe, Middle East and Africa |
Asia Pacific |
Other / Group-wide |
Group total |
% of net 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 result | 341 | 573 | 312 | -681 | 545 | 15% |
| Net financial items | - | - | - | -108 | -108 | |
| Profit before tax | 341 | 573 | 312 | -789 | 437 |
| SEK M | North and South America |
Europe, Middle East and Africa |
Asia Pacific |
Other / Group-wide |
Group total |
% of net sales |
|---|---|---|---|---|---|---|
| Net sales | 1,255 | 1,571 | 1,182 | - | 4,008 | |
| Regional expenses | -735 | -1,089 | -777 | - | -2,601 | 65% |
| Contribution margin | 520 | 482 | 405 | - | 1,407 | 35% |
| Contribution margin, % | 41% | 31% | 34% | |||
| Global costs | - | - | - | -750 | -750 | 19% |
| Operating result | 520 | 482 | 405 | -750 | 658 | 16% |
| Net financial items | - | - | - | -77 | -77 | |
| Profit before tax | 520 | 482 | 405 | -827 | 581 |
| SEK M | North and South America |
Europe, Middle East and Africa |
Asia Pacific |
Other / Group-wide |
Group total |
% of net 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 |
| SEK M | North and South America |
Europe, Middle East and Africa |
Asia Pacific |
Other / Group-wide |
Group total |
% of net sales |
|---|---|---|---|---|---|---|
| Net sales | 4,482 | 5,547 | 4,572 | - | 14,601 | |
| Regional expenses | -2,704 | -3,786 | -3,142 | - | -9,633 | 66% |
| Contribution margin | 1,778 | 1,760 | 1,430 | - | 4,968 | 34% |
| Contribution margin, % | 40% | 32% | 31% | |||
| Global costs | - | - | - | -3,312 | -3,312 | 23% |
| Operating result | 1,778 | 1,760 | 1,430 | -3,312 | 1,657 | 11% |
| Net financial items | - | - | - | -203 | -203 | |
| Profit before tax | 1,778 | 1,760 | 1,430 | -3,515 | 1,454 |
| North and | Europe, | ||||
|---|---|---|---|---|---|
| South | Middle East | Other / | |||
| SEK M | America | and Africa | Asia Pacific | 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 |
| Total | 1,255 | 1,571 | 1,182 | - | 4,008 |
|---|---|---|---|---|---|
| Service | 616 | 527 | 341 | - | 1,485 |
| Solutions | 639 | 1,044 | 841 | - | 2,524 |
| SEK M | America | and Africa | Asia Pacific | Group-wide | Group total |
| South | Middle East | Other / | |||
| North and | Europe, |
| Total | 3,888 | 5,140 | 4,735 | - | 13,763 |
|---|---|---|---|---|---|
| Service | 2,325 | 2,014 | 1,249 | - | 5,588 |
| Solutions | 1,563 | 3,126 | 3,485 | - | 8,175 |
| SEK M | America | and Africa | Asia Pacific | Group-wide | Group total |
| South | Middle East | Other / | |||
| North and | Europe, |
| Total | 4,482 | 5,547 | 4,572 | - | 14,601 |
|---|---|---|---|---|---|
| Service | 2,518 | 1,970 | 1,268 | - | 5,755 |
| Solutions | 1,965 | 3,577 | 3,305 | - | 8,846 |
| SEK M | America | and Africa | Asia Pacific | Group-wide | Group total |
| South | Middle East | Other / | |||
| North and | Europe, |
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, 2021 | Apr 30, 2020 | |||
|---|---|---|---|---|
| SEK M Note |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
| Long-term interest-bearing liabilities | 3,043 | 3,250 | 7,101 | 7,503 |
| Long-term lease liabilities | 854 | 854 | 1,043 | 1,043 |
| Short-term interest-bearing liabilities | 2,141 | 2,174 | 1,001 | 1,002 |
| Short-term lease liabilities | 200 | 200 | 213 | 213 |
The Group's financial assets and financial liabilities, which have been measured at fair value, have been categorized in the fair value hierarchy. The different levels are defined as follows:
Level 1: Quoted prices on an active market for identical assets or liabilities
Level 2: Other observable data than quoted prices included in Level 1, either directly (that is, price quotations) or indirectly (that is, obtained from price quotations)
Level 3: Data not based on observable market data
| SEK M | Level | Apr 30, 2021 | Apr 30, 2020 |
|---|---|---|---|
| FINANCIAL ASSETS | |||
| Financial assets measured at fair value through profit or loss: | |||
| Derivative financial instruments – non-hedge accounting | 2 | 32 | 81 |
| Short-term investments | 1 | - | 62 |
| Short-term investments classified as cash equivalents | 1 | 792 | 1,241 |
| Financial assets measured at fair value through other | |||
| comprehensive income: | |||
| Equity instruments | 1 | 60 | 297 |
| Derivatives used for hedging purposes: | |||
| Derivative financial instruments – hedge accounting | 2 | 212 | 25 |
| Total financial assets | 1,096 | 1,707 | |
| FINANCIAL LIABILITIES | |||
| Financial liabilities at fair value through profit or loss: | |||
| Derivative financial instruments – non-hedge accounting | 2 | 29 | 55 |
| Other liabilities (contingent considerations) | 3 | 120 | 105 |
| Derivatives used for hedging purposes: | |||
| Derivative financial instruments – hedge accounting | 2 | 13 | 58 |
| Total financial liabilities | 162 | 217 |
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 | |||||
|---|---|---|---|---|---|---|
| 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | |
| Gross order intake, SEK M | 13,821 | 14,064 | 14,493 | 16,796 | 17,735 | 17,411 |
| Net sales, SEK M | 11,221 | 10,704 | 11,573 | 13,555 | 14,601 | 13,763 |
| Order backlog, SEK M | 18,239 | 22,459 | 27,974 | 32,003 | 34,689 | 33,293 |
| Operating result, SEK M | 423 | 598 | 1,845 | 1,696 | 1,657 | 1,906 |
| Operating margin, % | 3.8 | 5.6 | 15.9 | 12.5 | 11.3 | 13.9 |
| Shareholders' equity, SEK M | 6,412 | 6,774 | 6,987 | 7,779 | 8,113 | 8,197 |
| Return on shareholders' equity, % | 2 | 2 | 22 | 17 | 14 | 16 |
| Net debt, SEK M | 2,677 | 1,889 | 803 | 439 | 1,632 | 774 |
| Operational cash conversion, % | 111 | 145 | 95 | 61 | 35 | 82 |
| Average number of employees | 3,677 | 3,581 | 3,702 | 3,798 | 4,117 | 4,194 |
1 Calculation based on IAS18.
| May - Apr1 | May - Apr | May - Apr | ||||
|---|---|---|---|---|---|---|
| 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | |
| Earnings per share | ||||||
| before dilution, SEK | 0.36 | 0.33 | 3.53 | 3.14 | 2.84 | 3.28 |
| after dilution, SEK | 0.36 | 0.33 | 3.53 | 3.14 | 2.84 | 3.28 |
| Cash flow per share | ||||||
| before dilution, SEK | 1.00 | 2.69 | 3.79 | 2.48 | -0.74 | 5.05 |
| after dilution, SEK | 1.00 | 2.69 | 3.79 | 2.48 | -0.74 | 5.05 |
| Shareholders' equity per share | ||||||
| before dilution, SEK | 16.79 | 17.73 | 18.29 | 20.36 | 21.23 | 21.45 |
| after dilution, SEK | 16.79 | 17.73 | 18.29 | 20.36 | 21.23 | 21.45 |
| Average number of shares | ||||||
| before dilution, 000s | 381,288 | 381,306 | 382,027 | 382,027 | 382,062 | 382,083 |
| after dilution, 000s | 381,288 | 381,306 | 382,027 | 382,027 | 382,062 | 382,083 |
| Number of shares at closing | ||||||
| before dilution, 000s 2 | 381,288 | 382,027 | 382,027 | 382,027 | 382,083 | 382,083 |
| after dilution, 000s | 381,288 | 382,027 | 382,027 | 382,027 | 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, 2021).
| 2018/19 | 2019/20 | 2020/21 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK M | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Gross order intake | 5,401 | 4,390 | 4,036 | 4,276 | 5,032 | 4,451 | 3,627 | 3,954 | 5,379 |
| Net sales | 4,086 | 3,228 | 3,709 | 3,656 | 4,008 | 2,981 | 3,534 | 3,581 | 3,667 |
| EBITA | 985 | 448 | 539 | 648 | 886 | 551 | 752 | 664 | 743 |
| Operating result | 755 | 236 | 321 | 443 | 658 | 335 | 559 | 468 | 545 |
| Cash flow from operating activities |
1,547 | -629 | 419 | -21 | 1,244 | 211 | 535 | 690 | 1,114 |
| 2018/19 | 2019/20 | 2020/21 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| North and South America, % | 9 | 0 | 29 | -43 | 0 | 66 | -12 | 41 | 13 |
| Europe, Middle East and Africa, % | 18 | 64 | -21 | 9 | -17 | -20 | 20 | -17 | 7 |
| Asia Pacific, % | -8 | 31 | 23 | -6 | -13 | -12 | -12 | 8 | 46 |
| Group, % | 8 | 32 | 5 | -11 | -10 | 4 | -2 | 2 | 18 |
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 143-146 in the Annual Report 2019/20.
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.
| Europe, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| North and South | Middle East, | Group | |||||||
| America | and Africa | Asia Pacific | total | ||||||
| % | SEK M | % | SEK M | % | SEK M | % | SEK M | ||
| Q4 2020/21 vs. Q4 2019/20 | |||||||||
| Change based on constant currency | 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 | |
| Q4 2019/20 vs. Q4 2018/19 | |||||||||
| Change based on constant currency | 0 | - 5 |
-17 | -394 | -13 | -160 | -10 | -559 | |
| Currency effects | 5 | 100 | 2 | 40 | 4 | 50 | 4 | 190 | |
| Reported change | 5 | 95 | -16 | -353 | - 9 |
-110 | - 7 |
-369 | |
| May - Apr 2020/21 vs. May - Apr 2019/20 | |||||||||
| Change based on constant currency | 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 | |
| May - Apr 2019/20 vs. May - Apr 2018/19 | |||||||||
| Change based on constant currency | - 6 |
-321 | 1 | 81 | 8 | 385 | 1 | 146 | |
| Currency effects | 6 | 295 | 3 | 209 | 6 | 289 | 5 | 793 | |
| Reported change | - 1 |
-26 | 4 | 290 | 13 | 674 | 6 | 938 |
| Europe, | ||||||||
|---|---|---|---|---|---|---|---|---|
| North and South America |
Middle East, and Africa |
Asia Pacific | Group | |||||
| total | ||||||||
| % | SEK M | % | SEK M | % | SEK M | % | SEK M | |
| Q4 2020/21 vs. Q4 2019/20 | ||||||||
| Change based on constant currency | - 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 |
| Q4 2019/20 vs. Q4 2018/19 | ||||||||
| Change based on constant currency | - 1 |
- 8 |
- 2 |
-39 | -14 | -183 | - 6 |
-230 |
| Currency effects | 5 | 59 | 3 | 49 | 3 | 43 | 4 | 152 |
| Reported change | 4 | 51 | 1 | 11 | -11 | -140 | - 2 |
-78 |
| May - Apr 2020/21 vs. May - Apr 2019/20 | ||||||||
| Change based on constant currency | - 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 |
| May - Apr 2019/20 vs. May - Apr 2018/19 | ||||||||
| Change based on constant currency | - 6 |
-285 | 9 | 468 | 6 | 248 | 3 | 431 |
| Currency effects | 6 | 267 | 2 | 123 | 6 | 226 | 5 | 616 |
| Reported change | 0 | 18 | 12 | 591 | 12 | 474 | 8 | 1,047 |
EBITDA is used for the calculation of operational cash conversion and the net debt/EBITDA ratio. EBITDA
| SEK M | Q4 2019/20 | Q1 2020/21 | Q2 2020/21 | Q3 2020/21 | Q4 2020/21 |
|---|---|---|---|---|---|
| Operating result/EBIT | 658 | 335 | 559 | 468 | 545 |
| Amortization intangible assets: | |||||
| Capitalized development costs | 199 | 186 | 163 | 167 | 169 |
| Assets relating business combinations | 29 | 30 | 30 | 29 | 28 |
| Depreciation fixed assets | 121 | 100 | 95 | 96 | 111 |
| EBITDA | 1,008 | 651 | 846 | 759 | 853 |
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, 2020 | Jul 31, 2020 | Oct 31, 2020 | Jan 31, 2021 | Apr 30, 2021 |
|---|---|---|---|---|---|
| Profit before tax (12 months rolling) | 1,454 | 1,546 | 1,751 | 1,773 | 1,630 |
| Financial expenses (12 months rolling) | 266 | 256 | 268 | 270 | 295 |
| Profit before tax plus financial expenses | 1,720 | 1,802 | 2,019 | 2,043 | 1,924 |
| Total assets | 28,411 | 26,798 | 25,497 | 25,464 | 24,844 |
| Deferred tax liabilities | -545 | -559 | -560 | -566 | -515 |
| Long-term provisions | -235 | -222 | -255 | -264 | -224 |
| Other long-term liabilities | -73 | -83 | -92 | -81 | -71 |
| Accounts payable | -1,025 | -784 | -987 | -947 | -1,016 |
| Advances from customers | -4,103 | -3,875 | -3,881 | -3,753 | -3,759 |
| Prepaid income | -2,226 | -2,020 | -1,985 | -2,052 | -2,082 |
| Accrued expenses | -1,703 | -1,432 | -1,668 | -1,723 | -1,837 |
| Current tax liabilities | -246 | -191 | -188 | -210 | -137 |
| Short-term provisions | -179 | -182 | -182 | -169 | -174 |
| Derivative financial instruments | -105 | -125 | -67 | -41 | -35 |
| Other current liabilities | -501 | -555 | -665 | -628 | -559 |
| Capital employed | 17,472 | 16,769 | 14,968 | 15,030 | 14,435 |
| Average capital employed (last five quarters) | 14,247 | 15,133 | 15,401 | 15,656 | 15,735 |
| Return on capital employed | 12% | 12% | 13% | 13% | 12% |
Return on shareholders' equity measures the return generated on shareholders' capital invested in the company.
| SEK M | Q4 2019/20 | Q1 2020/21 | Q2 2020/21 | Q3 2020/21 | Q4 2020/21 |
|---|---|---|---|---|---|
| Net income (12 months rolling) | 1,084 | 1,153 | 1,307 | 1,320 | 1,253 |
| Average shareholders' equity excluding non-controlling interests (last five quarters) Return on shareholders' equity |
7,967 14% |
7,977 14% |
8,007 16% |
8,070 16% |
8,069 16% |
Cash flow is a focus area for management. The operational cash conversion shows the relation between cash flow from operating activities and EBITDA.
| from operating activities and EBITDA. | |||||
|---|---|---|---|---|---|
| SEK M | Q4 2019/20 | Q1 2020/21 | Q2 2020/21 | Q3 2020/21 | Q4 2020/21 |
| Cash flow from operating activities |
1,244 | 211 | 535 | 690 | 1,114 |
| EBITDA | 1,008 | 651 | 846 | 759 | 853 |
| Operational cash conversion | 123% | 32% | 63% | 91% | 130% |
In order to optimize cash generation, management focuses on working capital and reducing lead times between orders booked and cash received.
| Apr 30 | Apr 30 | Jan 31 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2021 |
| Working capital assets | |||
| Inventories | 2,283 | 2,748 | 2,416 |
| Accounts receivable | 3,281 | 3,379 | 3,287 |
| Accrued income | 1,772 | 1,526 | 1,831 |
| Other operating receivables | 1,116 | 1,202 | 1,261 |
| Sum working capital assets | 8,451 | 8,856 | 8,795 |
| Working capital liabilities | |||
| Accounts payable | 1,016 | 1,025 | 947 |
| Advances from customers | 3,759 | 4,103 | 3,753 |
| Prepaid income | 2,082 | 2,226 | 2,052 |
| Accrued expenses | 1,837 | 1,703 | 1,723 |
| Short-term provisions | 174 | 179 | 169 |
| Other current liabilities | 559 | 501 | 628 |
| Sum working capital liabilities | 9,428 | 9,735 | 9,273 |
| Net working capital | -977 | -879 | -478 |
| % of 12 months net sales | -7% | -6% | -3% |
Days Sales Outstanding was negative 21 days at the end of April 30, 2021 (negative 36 days per April 30).
| SEK M | Apr 30 2021 |
Apr 30 2020 |
Jan 31 2021 |
|---|---|---|---|
| North and South America | -72 | -75 | -72 |
| Europe, Middle East and Africa | 57 | 37 | 46 |
| Asia Pacific | -64 | -82 | -38 |
| Group | -21 | -36 | -18 |
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, 2020 | Jul 31, 2020 | Oct 31, 2020 | Jan 31, 2021 | Apr 30, 2021 |
|---|---|---|---|---|---|
| Long-term interest-bearing liabilities | 7,101 | 6,953 | 4,983 | 4,950 | 3,043 |
| Short-term interest-bearing liabilities | 1,001 | 895 | 879 | 831 | 2,141 |
| Cash and cash equivalents and short-term | |||||
| investments | -6,470 | -5,846 | -3,913 | -4,640 | -4,411 |
| Net debt | 1,632 | 2,002 | 1,949 | 1,140 | 774 |
| EBITDA (12 months rolling) | 2,931 | 3,040 | 3,252 | 3,265 | 3,110 |
| Net debt/EBITDA ratio | 0.56 | 0.66 | 0.60 | 0.35 | 0.25 |
Elekta will host a web conference at 10:00-11:00 CET on May 28 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 8 505 583 73 United Kingdom: +44 333 300 9273 United States: +1 833 526 8383
| Capital Markets Day | Jun 7, 2021 |
|---|---|
| Annual report 2020/21 | Jul 9, 2021 |
| Annual General Meeting | Aug 25, 2021 |
| Interim report, Q1, May-July 2021/22 | Aug 25, 2021 |
| Interim report, Q2, May-Oct 2021/22 | Nov 25, 2021 |
| Interim report, Q3, May-Jan 2021/22 | Feb 24, 2022 |
For almost five decades, Elekta has been a leader in precision radiation medicine. Our more than 4,000 employees worldwide are committed to ensuring everyone in the world with cancer has access to – and benefits from – more precise, personalized radiotherapy treatments. Headquartered in Stockholm, Sweden, Elekta is listed on NASDAQ Stockholm Exchange. Visit elekta.com or follow @Elekta on Twitter.
CFO Elekta AB (publ) +46 70 873 33 21 [email protected]
Head of Investor Relations Elekta AB (publ) +46 76 611 76 25 [email protected]
Elekta AB (publ) 556170-4015
Kungstensgatan 18 Box 7593 SE 103 93 Stockholm Sweden
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