Elekta

Quarterly Report • Aug 30, 2018

Interim report May-July 2018/19

Q1 2018/19:

• Gross order intake amounted to SEK 3,174 M (2,738), an increase of 16 percent in SEK and 12 percent based on constant exchange rates.
• Net sales was SEK 2,819 M (2,504), an increase of 13 percent in SEK and 10 percent based on constant exchange rates.
• EBITA amounted to SEK 386 M (420), including a positive effect of SEK 76 M related to a divestment during the period.
• EBITA margin was 13.7 percent (16.7).
• Operating result was SEK 238 M (281).
• Net income amounted to SEK 166 M (199). Earnings per share was SEK 0.43 (0.52) before/after dilution.
• Cash flow after continuous investments was SEK -542 M (-95).
• Net debt amounted to SEK 1,307 M (1,912).
• Four Elekta Unity orders were added to the order backlog.

GROUP SUMMARY

	Q1	Q1
SEK M	2018/19	2017/18	Change
Gross order intake	3,174	2,738	12% *
Net sales	2,819	2,504	10% *
EBITA	386	420	-8%
Operating result	238	281	-15%
Net income	166	199	-16%
Cash flow after continuous investments	-542	-95	n/a
Earnings per share before/after dilution, SEK	0.43	0.52	-17%

*Compared to last fiscal year based on constant exchange rates.

Outlook for fiscal year 2018/19 reiterated:

• Net sales growth of around 7 percent, based on constant exchange rates.
• EBITA margin of around 20 percent.

Forward-looking infor mation. This report includes forward -looking statements including, but not limited to, state ments relating to operational and financial perfor man ce, market conditions, and o ther similar matters. The se for ward -looking state ments are based on current e xpecta tions about future ev ents. Although t he e xpec tations des cribed in these state ments are assu med to be reasonabl e, there is no guarantee t hat such f or ward -looking state ments will materialize or are accurat e. Since th ese sta t e ments involve assu mptions and esti mates t hat are sub ject t o risks and un certainties, results could differ materially fro m t hose set out in the state ment. So me of the se risks and uncertainties are described further in the section "Risks and uncertainties". Elekta underta kes no obligation to publicly update or revise any for ward -looking state men ts, whe ther as a re sult of ne w infor mation, future event s or other wise, e xcept a s required by law or stoc k e xchan ge regulations.

President and CEO comments

I am pleased to report that we in many aspects delivered a good first quarter of the year. It was characterized by solid market development, Elekta Unity orders and a number of competitive wins, resulting in order intake growth of 12 percent compared with last year and based on unchanged exchange rates. In regions North and South America and Europe, Middle East and Africa, order intake rose by 23 and 15 percent, respectively. Asia Pacific returned to growth during the quarter, with an increase of 8 percent in China and twice that in Japan. We estimate global market growth for the past 12 months to be 7 percent and we maintain a positive view for all regions.

Our net sales grew by 10 percent in the first quarter. Linear accelerator sales were strong, particularly in emerging markets, as well as growth in all software segments and our service revenue grew by 8 percent. We continue to invest in long-term profitable growth. This includes an expansion of our commercial organization and marketing as well as activities to strengthen our role as the leader in precision radiation medicine.

We reported an EBITA margin of approximately 20 percent for the rolling 12 month period. However, gross margin in the quarter was 39.1 percent, a decline compared with the preceding year, primarily a result of higher volumes to emerging markets and an unfavorable project mix. We are confident that the gross margin will increase during the remainder of the year, primarily related to improved geographic and project mix and Elekta Unity revenues.

The cash conversion rate for the rolling 12-month period was 78 percent. In the first quarter cash flow was affected by a decrease in customer advances as well as higher inventory levels. This is a temporary effect related to the high revenue growth in the quarter as well as lower shipments and associated invoicing following that we now are focusing our operations on project installation starts and further shortening of lead times. We have also built our inventory for upcoming Unity installations.

Elekta Unity has recently reached three milestones: CE mark in Europe, the first patients treated using the clinically approved system and submission to the FDA for approval and market clearance in the U.S. I remain convinced that Elekta Unity is the future of radiation therapy and an unrivaled device for delivering precision radiation medicine. This is confirmed by the very high interest that customers show. One clear example is the recent seminar on MR radiation therapy, held by UMC Utrecht, which attracted more than 300 participants from universities and hospitals all around the world.

During the quarter, we booked four new Unity orders, which means that we have sold a total of 32 systems. Feedback from our customers confirms that Unity has the potential to offer each patient the possibility of more personalized radiation therapy with the highest level of precision and reduced risk for complications.

To strengthen our portfolio, we recently acquired two companies: Acumyn, with its integrated quality management system, AQUA; and PalabraApps, which helps to improve the clinical workflow using Elekta's MOSAIQ® oncology information system. During the quarter we also divested our MEG business.

We see a continually increasing demand for advanced cancer care and our outlook for the full year is positive and unchanged: we estimate that net sales will grow around 7 percent and that we will achieve an EBITA margin of around 20 percent for our current fiscal year.

Richard Hausmann President and CEO

Presented amounts refer to the fiscal year 2018/19 and amounts within parentheses indicate comparative values for the equivalent period last fiscal year restated to IFRS 15 unless otherwise stated.

Order intake and order backlog

Gross order intake increased 16 percent to SEK 3,174 M (2,738) and increased 12 percent based on constant exchange rates.

GROSS ORDER INTAKE

	Q1	Q1			12 months		May - Apr
SEK M			2018/19 2017/18 Change*	Change	rolling	Change*	2017/18
North and South America	990	791	23%	25%	4,920	15%	4,720
Europe, Middle East and Africa	1,004	826	15%	22%	5,568	7%	5,389
Asia Pacific	1,180	1,121	2%	5%	4,443	1%	4,384
Group	3,174	2,738	12%	16%	14,929	8%	14,493

*Compared to last fiscal year based on constant exchange rates.

Order backlog was SEK 28,092 M, compared to SEK 27,974 M on April 30, 2018. Order backlog is converted at closing exchange rates which resulted in a negative translation difference of SEK -155 M.

Regional development

North and South America

The U.S. is the world's largest market for radiation therapy. Market growth is primarily driven by service and software as well as upgrading the installed base of treatment systems. In the first quarter, new proposals for radiation therapy reimbursement were presented in the U.S. If the proposals are implemented, levels will increase slightly next year. South America has a significant need for high-quality, cost-effective cancer care. At the same time, weak economic conditions throughout the region have slowed investments in new equipment.

Elekta's performance in the region continued to strengthen and we advanced our market positions during the quarter. Growth was particularly favorable for software and service. For the region in total, order intake grew by 25 percent, corresponding to an increase of 23 percent based on unchanged exchange rates. We booked one order for an Elekta Unity research system from Allegheny Health Network in Pittsburgh, USA.

Europe, Middle East and Africa

We have seen stable growth in the established markets, driven mainly by upgrading the installed base to new systems and aftermarket services, but also investment to expand radiation therapy capacity. The region's emerging markets are characterized by a significant need for radiation therapy and a substantial capacity gap.

Elekta's order intake increased by 22 percent compared to last year, corresponding to 15 percent based on unchanged exchange rates. Our performance was particularly favorable in Italy, Poland, Slovakia and the Middle East. During the quarter, we signed two orders for Elekta Unity, one to L'Hôpital Riviera-Chablais (Vevey Providence) in Switzerland and one to Centre Sidi Abdellah Cancérologie in Algeria. Interest in Unity is strong and has further increased since it received CE mark and the first patients were successfully treated.

Asia Pacific

The region has a significant long-term need for expanding cancer care and the markets are generally underserved in terms of radiation therapy capacity.

Elekta's order intake rose 5 percent in the quarter, corresponding to 2 percent when calculated on unchanged exchange rates. China is our largest market in the region and we strengthened our position in the country, increasing our order intake by 8 percent. Reimbursement levels in China have increased and growth in the private market is favorable. It is also satisfying that we have returned to growth in Japan. In Australia, we sold an Elekta Unity system to Genesis Care.

Net sales and earnings

Growth in the first quarter was strong in Asia Pacific and Europe, Middle East and Africa, and net sales increased to SEK 2,819 M (2,504) representing a growth of 13 percent or 10 percent based on constant exchange rates.

NET SALES

	Q1	Q1			12 months		May-Apr
SEK M	2018/19		2017/18 Change*	Change	rolling	Change*	2017/18
North and South America	937	940	-2%	0%	3,884	e/t	3,888
Europe, Middle East and Africa	1,003	862	11%	16%	4,486	e/t	4,345
Asia Pacific	879	702	23%	25%	3,517	e/t	3,340
Group	2,819	2,504	10%	13%	11,887	e/t	11,573

*Compared to last fiscal year based on constant exchange rates. Comparable data for 12 months rolling not available due to IFRS15 restatement on quarterly basis starting Q1 2017/18.

Gross margin was 39.1 percent (46.4). The decrease is to a large extent related to unfavorable geographic and project mix. Operating expenses increased, mainly related to investments in the commercialization of Elekta Unity, Elekta Digital and the commercial organization. R&D expenditure, adjusted for the net of capitalization and amortization of development costs, amounted to SEK 373 M (338), equal to 13 percent (14) of net sales or 12 percent on a 12 months rolling basis. EBITA decreased to SEK 386 M (420) representing a margin of 13.7 percent (16.7). The decrease is a result of lower gross margin and higher operating costs. The rolling 12 month EBITA margin was 19.6 percent.

The effect from changes in exchange rates compared with last year was approximately SEK 25 M including hedges. Operating result was SEK 238 M (281). The operating result includes a positive effect of SEK 76 M related to a divestment, reported as part of other operating income and expenses.

Net financial items amounted to SEK -25 M (-39). Profit before tax amounted to SEK 213 M (243) and tax amounted to SEK -47 M (-44), representing a tax rate of 22 percent (18).

Net income amounted to SEK 166 M (199) and earnings per share amounted to SEK 0.43 (0.52) before/after dilution. Return on shareholders' equity amounted to 21 percent (3**) and return on capital employed amounted to 17 percent (6**).

** Calculation based on IAS18

CAPITALIZED DEVELOPMENT COSTS

	Q1	Q1	12 months	May - Apr
SEK M	2018/19	2017/18	rolling	2017/18
Capitalization of development costs	129	127	639	637
of which R&D	128	127	637	637
Amortization of capitalized development costs	-120	-110	-418	-408
of which R&D	-120	-105	-400	-385
Capitalized development costs, net	9	17	221	229
of which R&D	8	23	237	252

The net of capitalization and amortization of development costs in the R&D function decreased to SEK 8 M (23). Amortization of capitalized development costs amounted to SEK 120 M (110). The increase is related to the start of amortization following the CE marking of Elekta Unity.

Investments and depreciation

Investments in intangible assets were SEK 129 M (128) and investments in tangible assets were SEK 31 M (43). Amortization of intangible assets and depreciation of tangible fixed assets amounted to a total of SEK 189 M (177).

Cash flow

Cash flow from operating activities was SEK -381 M (76). The operational cash conversion for rolling 12 months was 78 percent. Cash flow after continuous investments was SEK -542 M (-95). The decline in cash flow was due to increased levels of net working capital.

CASH FLOW (EXTRACT)

	Q1	Q1	12 months	May - Apr
SEK M	2018/19	2017/18	rolling	2017/18
Operating cash flow	318	307	2,368	2,357
Change in working capital	-699	-232	-421	47
Cash flow from operating activities	-381	76	1,947	2,404
Continuous investments	-160	-171	-805	-816
Cashflow after continuous investments	-542	-95	1,142	1,589
Operational cash conversion	-89%	16%	78%	95%

Working capital

Net working capital was SEK -1,622 M corresponding to -14 (-20 per April 30, 2018) percent of net sales. We are continuing to reduce project lead times between shipments and start of installations. In the first quarter net working capital levels were impacted by a reduction of customer advances linked to high level of installations of already paid projects. In addition, the number of shipped projects in the quarter was lower than in the first quarter last year. The shipment levels are expected to increase in the coming quarters. In the quarter, we also built inventory for coming Elekta Unity installations.

Working capital

	Jul 31	Jul 31	Apr 30
SEK M	2018	2017	2018
Working capital assets
Inventories	2,485	2,240	2,560
Accounts receivable	3,061	3,032	3,402
Accrued income	1,004	897	1,160
Other operating receivables	1,103	1,026	1,068
Sum working capital assets	7,654	7,195	8,191
Working capital liabilities
Accounts payable	841	806	1,132
Advances from customers	4,608	4,861	5,316
Prepaid income	1,899	1,653	1,990
Accrued expenses	1,508	1,314	1,662
Short-term provisions	165	175	186
Other current liabilities	255	212	257
Sum working capital liabilities	9,276	9,022	10,543
Net working capital	-1,622	-1,827	-2,352
% of 12 months net sales	-14%	n/a	-20%

Days Sales Outstanding (DSO) was negative 75 days (negative 87 per April 30, 2018). North and South America was unchanged in the quarter while increases were seen in Europe, Middle East and Africa, and Asia Pacific regions.

DAYS SALES OUTSTANDING (DSO)

	Jul 31	Apr 30
SEK M	2018	2018
North and South America	-123	-122
Europe, Middle East and Africa	-9	-30
Asia Pacific	-106	-122
Group	-75	-87

Financial position

Cash and cash equivalents and short-term investments amounted to SEK 3,547 M (3,158) and interest-bearing liabilities amounted to SEK 4,854 M (5,071). Net debt amounted to SEK 1,307 M (1,912). Net debt in relation to EBITDA was 0.53 (0.32 per April 30, 2018).

NET DEBT

	Jul 31	Jul 31	Apr 30
SEK M	2018	2017	2018
Long-term interest-bearing liabilities	4,341	4,650	4,369
Short-term interest-bearing liabilities	513	421	975
Cash and cash equivalents and short-term investments	-3,547	-3,158	-4,541
Net debt	1,307	1,912	803

The exchange rate effect from the translation of cash and cash equivalents amounted to SEK -13 M (-119). The translation difference in interest-bearing liabilities amounted to SEK -41 M (-216). Other comprehensive income was affected by exchange rate differences from translation of foreign operations amounting to SEK -214 M (-244).

The change in unrealized exchange rate effects from effective cash flow hedges reported in other comprehensive income amounted to SEK -77 M (46). The closing balance of unrealized exchange rate effects from effective cash flow hedges amounted to SEK -44 M (79) exclusive of tax.

Legal disputes

humediQ

During fiscal year 2017/18, humediQ GmbH initiated a new arbitration against Elekta group companies and arising out of the agreement as the previous arbitration in 2016. Elekta believes that the claims are meritless and will vigorously defend itself.

Significant events during the reporting period

Elekta Unity receives CE mark

On June 18, 2018, Elekta Unity received CE mark, clearing the technology for commercial sales and clinical use in Europe.

Sale of MEG business to York Instruments

On July 19, 2018, Elekta announced that it has sold its MEG business to York Instruments, a subsidiary of Croton Healthcare, LLC. This divestment follows Elekta's strategic decision to prioritize its treatment solutions and oncology informatics portfolio.

Acquisition of quality assurance expert Acumyn

Elekta announced on July 27, 2018, that it has acquired the Canadian quality assurance expert Acumyn, a standalone commercial spin-off of University Health Network, Toronto. This follows an exclusive agreement between Elekta and Acumyn, signed in 2014, to commercialize its integrated Quality Management System, AQUA.

Changes to Executive Management Team

As of June 1, 2018, Caroline Mofors, Senior Vice President, Chief Compliance and Integrity Officer, is a member of the Executive Management team.

Renato Leite joined Elekta on June 1, 2018, as Executive Vice President Region Europe and member of the Executive Management team.

Events after the reporting period

Pending 510(k) for Elekta Unity with the U.S. FDA

On August 7, 2018, Elekta announced that it submitted a 510(k) application for its Elekta Unity magnetic resonance radiation therapy system to the U.S. FDA, where the submission is in the review process. Upon receiving FDA 510(k) pre-market clearance, U.S. healthcare providers will then be able to offer Unity's distinctive real time imaging, planning and treatment to their patients.

Employees

The average number of employees during the period was 3,694 (3,680).

The average number of employees in the Parent Company was 33 (31).

Shares

Total number of registered shares on July 31, 2018 was 383,568,409 of which 14,980,769 were A-shares and 368,587,640 B-shares. On July 31, 2018 1,541,368 shares were treasury shares held by Elekta.

Risks and uncertainties

Elekta's presence in a large number of geographical markets exposes the Group to political and economic risks on a global scale and/or in individual countries. United Kingdom's decision to leave the European Union, as an example, might lead to economic uncertainty that may impact Elekta since an important part of the business is located in the United Kingdom.

The competitive landscape for Elekta is continuously changing. The medical equipment industry is characterized by technological developments and continuous improvements of industrial know-how, resulting in companies launching new products and improved methods for treatment. Elekta strives to be the leader in innovation and offer the most competitive product portfolio, developed in close collaboration with key research leaders in the field. To secure the proceeds of research investments, it is of importance that such new products and new technology are protected from the risk of improper use by competitors. When possible and deemed appropriate, Elekta protects its intellectual property rights by way of patents, copyrights and trademark registrations. Elekta carefully monitors intellectual property rights of third parties, but third parties may still direct infringement claims against Elekta which may lead to time-consuming and costly legal disputes as well as business interruption and other limitations in operations.

Elekta sells solutions through its direct sales force and through an external network of agents and distributors. The Company's continued success is dependent on the ability to establish and maintain successful relationships with customers. Elekta is continuously evaluating how to enter new markets, considering both the opportunities and the risks involved. There are regulatory registration requirements with each new market that potentially could delay product introductions and certifications. The stability of the political system in certain countries and the security situation for employees traveling to exposed areas are constantly evaluated. Corruption is a risk and an obstacle for development and growth in some countries. Elekta has implemented a specific anti-corruption policy to guide the business as it aims to be in line with national and international regulations and best practices against corruption as well as third party risk management processes.

Elekta's operations comprise several markets that expose the Group to a vast number of laws, regulations, policies and guidelines regarding, for example, health, security, environmental matters, trade restrictions, competition and delivery of products. Elekta's quality systems describe these requirements, which are reviewed and certified by external supervisory bodies and are regularly inspected by authorities in applicable countries, for example, the US FDA. Noncompliance of, for example, safety regulations can result in delayed or stopped deliveries of products. Changes in regulations and rules might also increase Elekta's costs and delay the development and introduction of new products.

Elekta depends also on the capability of producing advanced medical equipment, which requires highly qualified personnel. The Company's ability to attract and retain qualified personnel and management has a significant impact on the future success of the Group.

Weak economic development and high levels of public debt might, in some markets, mean less availability of financing for private customers and reduced future healthcare spending by governments. Political decisions that could impact the healthcare reimbursement systems also constitute a risk factor. Elekta's ability to commercialize products is dependent on the reimbursement level that hospitals and clinics can obtain for different types of treatments. Alterations in the existing reimbursement systems related to medical products, or implementation of new regulations, might impact future product mix in specific markets.

Elekta's delivery of treatment equipment relies largely on customers' readiness to receive the delivery at site. Depending on contractual payment terms, a delay can result in postponed invoicing and also affect timing of revenue recognition. The Group's credit risks are normally limited since customer operations are, to a large extent, financed either directly or indirectly by public funds.

Elekta depends on a number of suppliers for components. There is a risk that delivery difficulties might occur due to circumstances beyond Elekta's control. Critical suppliers are regularly followed up regarding delivery precision and quality of components.

Elekta's operations within research and development, production, distribution, marketing and administration depend on a large number of advanced IT systems and IT solutions. Routines and procedures are applied in order to protect the hardware, software and information against damages, manipulations, loss or incorrect use. If these systems and solutions should be affected by any interference resulting in loss of information it might have a negative impact on Elekta's operations, result and financial position.

In its operations, Elekta is subject to a number of financial risks primarily related to exchange rate fluctuations. In the short term, the effect of currency movements is reduced through forward contracts. Hedging is conducted on the basis of expected net sales over a period of up to 24 months. The scope of the hedging is determined by the Company's assessment of currency risks. Risk exposure is regulated through a financial policy established by the Board of Directors. The overall responsibility for handling the Group's financial risks and developing methods and guidelines for dealing with financial risks, rests with the executive management and the finance function. For more detailed information regarding these risks, see Note 2 in the Annual Report 2017/18.

Stockholm, August 30, 2018

Richard Hausmann CEO and President

This report has not been reviewed by the Company´s auditors.

CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

INCOME STATEMENT	Q1	Q1	12 months	May - Apr
SEK M	2018/19	2017/18	rolling	2017/18
Net sales	2,819	2,504	11,887	11,573
Cost of products sold	-1,716	-1,343	-6,890	-6,517
Gross income	1,103	1,162	4,997	5,056
Selling expenses	-324	-305	-1,228	-1,208
Administrative expenses	-265	-243	-970	-949
R&D expenses	-365	-316	-1,145	-1,095
Other operating income and expenses	65	-5	70	0
Exchange rate differences	24	-12	78	42
Operating result	238	281	1,802	1,845
Result from participations in associates	2	2	-7	-7
Interest income	18	7	78	67
Interest expenses and similar items	-45	-44	-225	-225
Exchange rate differences	0	-3	4	1
Profit before tax	213	243	1,651	1,681
Income taxes	-47	-44	-336	-333
Net income	166	199	1,315	1,348
Net income attributable to:
Parent Company shareholders	166	199	1,315	1,348
Non-controlling interests	0	-	0	0
Earnings per share before dilution, SEK	0.43	0.52	3.44	3.53
Earnings per share after dilution, SEK	0.43	0.52	3.44	3.53
STATEMENT OF COMPREHENSIVE INCOME
SEK M
Net income	166	199	1,315	1,348
Other comprehensive income:
Items that will not be reclassified to the income statement:
Remeasurements of defined benefit pension plans	-	-	-19	-19
Tax	-	-	5	5
Total items that will not be reclassified to the income statement	-	-	-14	-14
Items that subsequently may be reclassified to the income statement:
Revaluation of cash flow hedges	-77	46	-128	-5
Translation differences from foreign operations	-214	-244	505	475
Tax	15	-9	26	2
Total items that subsequently may be reclassified to the income statement	-277	-207	402	472
Other comprehensive income for the period	-277	-207	389	458
Total comprehensive income for the period	-110	-9	1,704	1,806
Comprehensive income attributable to:
Parent Company shareholders	-110	-9	1,704	1,806
Non-controlling interests	0	-	0	0

RESULT OVERVIEW

	Q1	Q1	12 months	May - Apr
SEK M	2018/19	2017/18	rolling	2017/18
Operating result/EBIT	238	281	1,802	1,845
Amortization:
Capitalized development costs	120	110	418	408
Assets relating to business combinations	27	29	115	116
EBITA	386	420	2,335	2,369

CONSOLIDATED BALANCE SHEET

	Jul 31	Jul 31	Apr 30
SEK M	2018	2017	2018
Non-current assets
Intangible assets	9,078	8,343	9,175
Tangible fixed assets	856	760	895
Financial assets	250	287	261
Deferred tax assets	356	415	350
Total non-current assets	10,541	9,805	10,681
Current assets
Inventories	2,485	2,240	2,560
Accounts receivable	3,061	3,032	3,402
Accrued income	1,004	897	1,160
Current tax assets	160	248	177
Derivative financial instruments	20	119	170
Other current receivables	1,103	1,026	1,068
Short-term investments	84	-	83
Cash and cash equivalents	3,463	3,158	4,458
Total current assets	11,381	10,720	13,080
Total assets	21,921	20,525	23,760
Elekta's owners' equity	6,843	5,555	6,987
Non-controlling interests	0	0	0
Total equity	6,843	5,555	6,987
Non-current liabilities
Long-term interest-bearing liabilities	4,341	4,650	4,369
Deferred tax liabilities	504	534	511
Long-term provisions	169	159	158
Other long-term liabilities	59	15	63
Total non-current liabilities	5,073	5,358	5,102
Current liabilities
Short-term interest-bearing liabilities	513	421	975
Accounts payable	841	806	1,132
Advances from customers	4,608	4,861	5,316
Prepaid income	1,899	1,653	1,990
Accrued expenses	1,508	1,314	1,662
Current tax liabilities	111	96	107
Short-term provisions	165	175	186
Derivative financial instruments	105	74	46
Other current liabilities Total current liabilities	255 10,005	212 9,612	257 11,671
Total equity and liabilities	21,921	20,525	23,760

CASH FLOW

	Q1	Q1	12 months	May - Apr
SEK M	2018/19	2017/18	rolling	2017/18
Profit before tax	213	243	1,651	1,681
Amortization and depreciation	189	177	687	675
Interest net	18	28	86	96
Other non-cash items	-43	-17	228	254
Interest received and paid	-37	-46	-89	-98
Income taxes paid	-21	-77	-195	-250
Operating cash flow	318	307	2,368	2,357
Increase (-)/decrease (+) in inventories	-42	-55	-111	-125
Increase (-)/decrease (+) in operating receivables	268	313	-66 *	-21 *
Increase (+)/decrease (-) in operating liabilities	-925	-490	-243	192
Change in working capital	- 699	-232	-421	47
Cash flow from operating activities	-381	76	1,947	2,404
Investments intangible assets	-129	-128	-644	-642
Investments other assets	-31	-43	-200	-212
Sale of fixed assets	0	0	38 *	38 *
Continuous investments	- 160	-171	- 805	-816
Cash flow after continuous investments	-542	-95	1,142	1,589
Increase(-)/decrease(+) in short-term investments	-1	-	-84	-83
Business combinations, divestments and investments in other shares	9	-24	-25	-58
Cash flow after investments	-533	-120	1,034	1,447
Cash flow from financing activities	-449	14	-831	-367
Cash flow for the period	-982	-105	203	1,080
Change in cash and cash equivalents during the period
Cash and cash equivalents at the beginning of the period	4,458	3,383	3,158	3,383
Cash flow for the period	-982	-105	203	1,080
Exchange rate differences	-13	-119	102	-4
Cash and cash equivalents at the end of the period	3,463	3,158	3,463	4,458

* Adjusted for receivables/liabilities relating to investments/sale of fixed assets.

CHANGES IN EQUITY

	May - Jul		May - Jul May - Apr
SEK M	2018/19	2017/18	2017/18
Attributable to Elekta's owners
Opening balance	6,987	6,774	6,774
Opening balance adjustment due to IFRS 15 and IFRS 9	-39	-1,212	-1,212
Comprehensive income for the period	-110	-9	1,806
Incentive programs including deferred tax	5	2	2
Dividend	-	-	-382
Total	6,843	5,555	6,987
Attributable to non-controlling interests
Opening balance	0	0	0
Comprehensive income for the period	0	-	0
Total	0	0	0
Closing balance	6,843	5,555	6,987

Accounting principles

This interim report is prepared, with regard to the Group, according to IAS 34 and the Swedish Annual Accounts Act and, with regard 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 2017/18, with exception for the accounting policies described below.

New accounting principles

Two new IFRS standards are effective as from January 1, 2018; IFRS 15 Revenue from Customer Contracts and IFRS 9 Financial instruments, and both these standards are applied since May 1, 2018. For IFRS 15 Elekta applies the full retrospective method and thus the prior year comparative period has been restated. IFRS 9 is applied retrospectively and the comparative period has not been restated.

IFRS 15 Revenue from contracts with customers - revenue recognition

Elekta's revenue is primarily derived from the sales of treatment solutions and oncology informatics including equipment used for radiation therapy, radiosurgery and brachytherapy as well as software products and related services.

Many of Elekta's products and services are sold on a stand-alone basis but are often included in bundled deals, which are arrangements where equipment, software and services may be included in the same contract. A bundled deal is treated as a project which is supported by a project team that coordinates the production, delivery and installation, which can occur at different stages.

In most contracts the transaction price consists of a fixed consideration which is clearly stated in the contract and the products are usually sold without a right of return. In rare cases contracts can include variable consideration for which the value is estimated for revenue allocation purposes.

The allocation of the transaction price, including any discount, to the various goods and services (performance obligations) in a contract is performed based on the estimated stand-alone selling prices for the goods and services identified as performance obligations. As many items included in a bundled deal are also sold on a stand-alone basis, the stand-alone selling prices are based on observable prices in most cases. For items not sold on a stand-alone basis the stand-alone selling prices have been estimated using the best available market and internal data relating to those items.

Costs incurred to obtain a contract consist mainly of commissions, which are recognized at the time when the related revenue is recognized.

The timing for revenue recognition of the goods and services included in a bundle deal depends on their characteristics and when the control of each good or service is transferred to the customer.

Treatment solutions

Elekta sells treatment solutions including devices, software and service. Main devices are Leksell Gamma Knifes, Linear accelerators, MR linacs and Afterloaders. Software licenses consist mainly of Oncology informatics systems (OIS) and Treatment planning systems (TPS). Services include maintenance and support relating to equipment, software, training and installation services. Most bundled deals include at least one device, software licenses, installation, service and training. Revenue recognition for these deals is linked to when control for each identified performance obligation is transferred to the customer, which for a standard contract happens at different stages over a longer period, usually up to six months depending on the geographical market.

Devices

In a standard contract, the control is considered to be transferred when the device is delivered to the customer's site and installation is started. At this time, risk and rewards are transferred, the customer has physical possession of the unit and Elekta has the right to payment for the equipment delivered.

Software

For software licenses control is considered to be transferred and revenue is recognized when the licenses are made available to the customer, which is usually at the time of acceptance of the software.

Service

For service agreements, control is considered to be transferred over time and revenue is recognized on a straightline basis over the contractual term of the arrangement or the expected period during which the specified services will be performed. Maintenance and support agreements relating to software products are generally renewed on an annual basis. Installation services and training with low values and which span over a limited time are

considered non-material and revenue is recognized when the related device reaches the stage of technical acceptance.

Changes to the goods and services included in an arrangement and the amounts allocated to each item could affect the timing and amount of revenue recognition. Revenue recognition also depends on the timing of shipment, readiness of the customer's site, availability of products and for some contracts, customer acceptance terms. If shipments or installations are not made on scheduled timelines or if the products are not accepted by the customer in a timely manner, revenues may differ from expectations.

Revenue recognition does often not coincide with invoicing to, and payments from, customers. Payment terms or conditions for projects may differ between contracts and regions, but in a standard Elekta contract partial payments will be due upon certain events, such as order receipt, shipment and acceptance. In a standard project, amounts invoiced in accordance with an invoicing plan are reported as accounts receivable and as a contract liability included in advances from customers if performance obligations are not yet satisfied and revenue cannot be recognized. Amounts that have been recognized as revenue, but for which Elekta has not yet the right to invoice according to the invoicing plan agreed, are reported as contract assets and included in accrued income. For service contracts the agreed consideration is invoiced and paid in advance in most markets. When there is a contract agreed and invoiced to the customer, Elekta usually has the right to payment even if the performance obligations are still to be satisfied. Therefore a receivable is accounted for with a corresponding contract liability reported as deferred income.

IFRS 9 - Financial instruments

IFRS 9 comprises classification, measurement and impairment of financial instruments as well as hedge accounting. The financial effects for Elekta from the transition to IFRS 9 are limited, and relate to the introduction of an expected credit loss model for impairment of financial assets that replaces the previously used incurred loss model. An expected is be calculated for all outstanding amounts based on historical experiences and expectations about the future. The main effect relates to the calculation of bad debt losses, as the provision for expected losses comprises all financial receivables, including those that are not yet due. Applying the expected loss model, the provision for bad debt will increase or decrease based on the outstanding value of financial assets. The financial effect from the application of expected credit loss model for mainly affects the value of trade receivables and accrued project income and is presented in the schedule below.

IFRS 9 also introduces a new model for classification and related measurement of financial instruments. Elekta has reviewed all financial instruments in order to classify these according to the new standard and the following main categories have been identified:

Excess liquidity investments such as money market funds and tradeable securities are held in a portfolio managed on a fair value basis and are classified as financial assets at Fair Value through Profit and Loss.

Trade receivables are in general held with the objective to collect contractual cash flows and therefore fulfill the requirements for being classified into the Hold To Collect business model with valuation at amortized cost. In some countries Elekta holds trade receivables that may be sold and are managed within a business model with the objective to realize cash flows through both collection of contractual cash flows and sale of the asset. These trade receivables are valued at Fair Value through Other Comprehensive Income.

The reclassification of assets does not result in any material changes in valuation of assets at the transition date.

Hedge accounting is applied in accordance with IFRS 9 and hedging relationships existing at the transition date qualified for hedge accounting under IFRS 9 as well as under the previous standard, IAS 39. In general, IFRS 9, more closely than the previous standard, aligns the hedge accounting rules to the risk management objectives of a company. Elekta applies hedge accounting for the hedging of foreign currency risks and from time to time also for hedging interest rate risks. The application of hedge accounting according to IFRS 9 has no financial effects at the transition date.

Effects from the implementation of IFRS 15 and IFRS 9

The net balance effect from the transition to IFRS 15 was reported in equity with SEK - 987 M as per May 1, 2018 and SEK -1,212 M at the beginning of the comparative year. The transition to IFRS 9 has affected the opening balance of fiscal year 2018/19 and the impact on equity is SEK - 39 M.

The one-time effect reported in equity from the implementation of the standards is mainly relating to IFRS 15 and the timing for revenue recognition of treatment solutions. According to IFRS 15 revenue recognition should occur at the time of transfer of control to the customer, which according to Elekta's assessment is when the treatment solution is ready for installation at the customer's site. Prior to the implementation of IFRS 15, revenue recognition for treatment solutions occurred when risks and rewards were transferred to the customer, which is normally at the time of shipment. The financial impact reported in equity on transition primarily depended on the number of treatment solutions that was shipped but not yet being installed at the customer's site at this point in time. Other less significant financial effects from the transition relate to changes in the allocation of the transaction price to various performance obligations. The effects from the implementation of IFRS 15 and IFRS 9 are further described below.

		Opening balance 2017/18 Closing balance 2017/18					Opening balance 2018/19
	Reported		Restated	Reported		Restated	Restated		Adjusted
SEK M	Apr 30, 2017	Adj. IFRS 15	Apr 30, 2017	Apr 30, 2018	Adj. IFRS 15	Apr 30, 2018	Apr 30, 2018	Adj. IFRS 9	May 1, 2018
Non-current assets
Deferred tax assets	375	91	466	267	83	350	350	10	360
Financial assets	308	-	308	261	-	261	261	-	261
Current assets
Inventories	936	1,384	2,320	1,121	1,439	2,560	2,560	-	2,560
Accounts receivable	3,726	-	3,726	3,402	-	3,402	3,402	-25	3,377
Accrued income	1,640	-789	851	1,601	-441	1,160	1,160	-24	1,136
Other current receivables	802	134	936	846	222	1,068	1,068	-	1,068
Total assets	20,950	820	21,770	22,457	1,303	23,760	23,760	-39	23,721
Total equity	6,774	-1,212	5,562	7,975	-987	6,987	6,987	-39	6,948
Non-current liabilities
Deferred tax liabilities	778	-225	553	693	-182	511	511	-	511
Current liabilities
Advances from customers	2,531	2,680	5,211	2,575	2,741	5,316	5,316	-	5,316
Prepaid income	1,874	1	1,875	2,053	-63	1,990	1,990	-	1,990
Accrued expenses	1,875	-398	1,477	1,854	-192	1,662	1,662	-	1,662
Short-term provisions	231	-26	205	201	-15	186	186	-	186
Total equity and liabilities	20,950	820	21,770	22,457	1,303	23,760	23,760	-39	23,721

EFFECTS FROM IFRS 15 AND IFRS 9 ON CONSOLIDATED BALANCE SHEET

EFFECTS FROM IFRS 15 RESTATEMENT ON CONSOLIDATED BALANCE SHEET
----------------------------------------------------------------	--

		Q1 2017/18			Q2 2017/18			Q3 2017/18			Q4 2017/18
SEK M	Reported	Adj.	Restated	Reported	Adj.	Restated	Reported	Adj.	Restated	Reported	Adj.	Restated
Non-current assets
Deferred tax assets	290	124	415	310	131	441	260	98	358	267	83	350
Current assets
Inventories	1,076	1,164	2,240	1,102	1,253	2,355		1,243 1,265	2,508		1,121 1,439	2,560
Accounts receivable	3,032	-	3,032	3,120	-	3,120	3,505	-	3,505	3,402	-	3,402
Accrued income	1,467	-570	897	1,545	-533	1,012	1,177	-408	769	1,601	-441	1,160
Other current receivables	878	148	1,026	917	155	1,072	926	184	1,110	846	222	1,068
Total assets	19,659	866	20,525	20,152	1,006	21,158	20,617 1,139		21,756	22,457 1,303		23,760
Total equity	6,511	-956	5,555	6,734	-919	5,815	7,040	-886	6,154	7,975	-987	6,987
Non-current liabilities
Deferred tax liabilities	668	-134	534	669	-115	554	593	-138	455	693	-182	511
Current liabilities
Advances from customers	2,537	2,324	4,861	2,440	2,280	4,720		2,643 2,382	5,025		2,575 2,741	5,316
Prepaid income	1,704	-50	1,653	1,764	10	1,774	1,830	- 7	1,823	2,053	-63	1,990
Accrued expenses	1,611	-297	1,314	1,742	-232	1,510	1,688	-197	1,491	1,854	-192	1,662
Short-term provisions	196	-21	175	172	-18	154	140	-15	125	201	-15	186
Total equity and liabilities	19,659	866	20,525	20,152	1,006	21,158	20,617 1,139		21,756	22,457 1,303		23,760

EFFECTS FROM IFRS 15 RESTATEMENT ON CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

		Q1 2017/18		Q2 2017/18				Q3 2017/18			Q4 2017/18	May - Apr 2017/18
SEK M			Reported Adj. Restated			Reported Adj. Restated			Reported Adj. Restated	Reported	Adj.	Restated	Reported	Adj.	Restated
Net sales	2,169 335		2,504	2,802 101		2,903	2,747	9	2,756	3,614	-205	3,409	11,333	240	11,573
Cost of products sold	-1,250 -92		-1,343	-1,620 -25		-1,645	-1,595	34	-1,561	-2,120	150	-1,970	-6,584	67	-6,517
Gross income		919 243	1,162	1,183	76	1,259	1,153	43	1,196	1,494	-55	1,439	4,748	307	5,056
Operating result		38 243	281	365	76	441	366	43	409	769	-55	714	1,538	307	1,845
Operating margin	2%	-	11%	13%	-	15%	13%	-	15%	21%	-	21%	14%	-	16%
Income taxes		0 -44	-44		-84 -18	-102	-25	- 9	-34	-166	13	-153	-276	-57	-333
Net income	-	1 199	199	247	58	305	308	34	342	544	-42	502	1,099	249	1,348
Total comprehensive income for the period Earnings per share		-265 256	- 9	410	37	447	312	32	345	1,123	-101	1,023	1,581	225	1,806
before/after dilution, SEK		0.00 0.52	0.52		0.65 0.15	0.80		0.81 0.09	0.90	1.42	-0.11	1.31		2.88 0.65	3.53
EBITA		177 243	420	491	76	566	491	43	534	903	-55	848	2,062	307	2,369
EBITA margin	8%		17%	18%		20%	18%		19%	25%		25%	18%		20%

Exchange rates

Country	Currency	Average rate				Closing rate
		May - Jul 2018/19	May - Jul 2017/18	Change *	Jul 31, 2018	Jul 31, 2017	Apr 30,	Change * 2018 12 months Change **
Euroland	1 EUR	10.319	9.681	7%	10.250	9.535	10.509	8%	-2%
Great Britain	1 GBP	11.711	11.102	5%	11.489	10.668	11.942	8%	-4%
Japan	1 JPY	0.080	0.077	4%	0.079	0.074	0.079	6%	0%
United States	1 USD	8.794	8.605	2%	8.749	8.131	8.664	8%	1%

*July 31, 2018 vs July 31, 2017

**July 31, 2018 vs April 30, 2018

For Group companies with functional currency other than Swedish kronor, order intake and income statements are translated at average exchange rates for the reporting period, while order backlog and balance sheets are translated at closing exchange rates.

Segment reporting

Elekta applies geographical segmentation. Order intake, net sales and contribution margin for respective regions are reported to Elekta's CFO and CEO (chief operating decision makers). The regions' expenses are directly attributable to the respective region reported including cost of products sold. Global costs for R&D, marketing, management of product supply centers and Parent Company are not allocated per region. Currency exposure is concentrated to product supply centers. The majority of exchange differences in operations are reported in global costs.

May - Jul 2018/19		Europe,
	North and	Middle East		Other/		% of
SEK M	South America	and Africa	Asia Pacific	Group-wide	Group total	net sales
Net sales	937	1,003	879	-	2,819
Regional expenses	-631	-680	-616	-	-1,926	68%
Contribution margin	306	323	263	-	892	32%
Contribution margin, %	33%	32%	30%
Global costs				-654	-654	23%
Operating result	306	323	263	-654	238	8%
Net financial items				-25	-25
Profit before tax	306	323	263	-680	213

May - Jul 2017/18		Europe,
	North and	Middle East		Other/		% of
SEK M	South America	and Africa	Asia Pacific	Group-wide	Group total	net sales
Net sales	940	862	702	-	2,504
Regional expenses	-553	-564	-481	-	-1,598	64%
Contribution margin	388	297	221	-	906	36%
Contribution margin, %	41%	35%	31%
Global costs				-625	-625	25%
Operating result	388	297	221	-625	281	11%
Net financial items				-39	-39
Profit before tax	388	297	221	-663	243

May - Apr 2017/18		Europe,
	North and	Middle East		Other/		% of
SEK M	South America	and Africa	Asia Pacific	Group-wide	Group total	net sales
Net sales	3,888	4,345	3,340	-	11,573
Regional expenses	-2,375	-2,783	-2,294	-	-7,452	64%
Contribution margin	1,513	1,562	1,046	-	4,121	36%
Contribution margin, %	39%	36%	31%
Global costs				-2,276	-2,276	20%
Operating result	1,513	1,562	1,046	-2,276	1,845	16%
Net financial items				-164	-164
Profit before tax	1,513	1,562	1,046	-2,440	1,681

12 months rolling		Europe,
	North and	Middle East		Other/		% of
SEK M	South America	and Africa	Asia Pacific	Group-wide	Group total	net sales
Net sales	3,884	4,486	3,517	-	11,887
Regional expenses	-2,453	-2,898	-2,429	-	-7,780	65%
Contribution margin	1,431	1,588	1,088	-	4,107	35%
Contribution margin, %	37%	35%	31%
Global costs				-2,306	-2,306	19%
Operating result	1,431	1,588	1,088	-2,306	1,802	15%
Net financial items				-150	-150
Profit before tax	1,431	1,588	1,088	-2,456	1,651

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.

Net sales by product type

	Q1		Q1 12 months	May - Apr
SEK M	2018/19	2017/18	rolling	2017/18
Solutions	1,582	1,392	7,244	7,054
Services	1,237	1,112	4,644	4,519
Total	2,819	2,504	11,887	11,573

Financial instruments

The table below shows the fair value of the Group's financial instruments, for which fair value is different than carrying value. The fair value of all other financial instruments is assumed to correspond to the carrying value.

	Jul 31, 2018		Jul 31, 2017		Apr 30, 2018
	Carrying	Fair	Carrying		Carrying	Fair
SEK M	amount	value	amount	Fair value	amount	value
Long-term interest-bearing liabilities	4,341	4,346	4,650	4,700	4,369	4,372
Short-term interest-bearing liabilities	513	513	421	424	975	975

The Group's financial assets and financial liabilities, which have been measured at fair value, have been categorized in the fair value hierarchy. The different levels are defined as follows:

Level 1: Quoted prices on an active market for identical assets or liabilities

Level 2: Other observable data than quoted prices included in Level 1, either directly (that is, price quotations) or indirectly (that is, obtained from price quotations)

Level 3: Data not based on observable market data

FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

		Jul 31,	Jul 31,	Apr 30,
SEK M	Level	2018	2017	2018
FINANCIAL ASSETS
Financial assets measured at fair value through profit or loss:
Derivative financial instruments – non-hedge accounting	2	10	40	111
Short-term investments	1	84	-	83
Derivatives used for hedging purposes:
Derivative financial instruments – hedge accounting	2	12	89	59
Total financial assets		106	129	253
FINANCIAL LIABILITIES
Financial liabilities at fair value through profit or loss:
Derivative financial instruments – non-hedge accounting	2	54	64	27
Contingent consideration	3	6	50	20
Derivatives used for hedging purposes:
Derivative financial instruments – hedge accounting	2	56	10	26
Total financial liabilities		116	124	73

KEY FIGURES

			May - Apr * May - Apr * May - Apr * May - Apr * May - Apr			May - Jul	May - Jul
	2013/14	2014/15	2015/16	2016/17	2017/18	2017/18	2018/19
Gross order intake, SEK M	n/a	12,825	13,821	14,064	14,493	2,738	3,174
Net sales, SEK M	10,694	10,839	11,221	10,704	11,573	2,504	2,819
Order backlog, SEK M	13,609	17,087	18,239	22,459	27,974	24,736	28,092
Operating result, SEK M	1,727	937	423	598	1,845	281	238
Operating margin, %	16	9	4	6	16	11	8
Profit margin, %	14	7	2	3	15	10	8
Shareholders' equity, SEK M	6,257	6,646	6,412	6,774	6,987	5,555	6,843
Capital employed, SEK M	10,743	12,678	11,360	12,046	12,331	10,626	11,697
Net debt, SEK M	2,239	2,768	2,677	1,889	803	1,912	1,307
Operational cash conversion, %	60	126	111	145	95	16	-89
Average number of employees	3,631	3,679	3,677	3,581	3,702	3,680	3,694
			May - Apr * May - Apr * May - Apr * May - Apr * May - Apr			May - Jul * May - Jul
	2013/14	2014/15	2015/16	2016/17	2017/18	2017/18	2018/19
Return on shareholders' equity, %	21	9	2	2	22	3	21
Return on capital employed, %	17	9	4	5	17	6	17

* Calculation based on IAS18

DATA PER SHARE

			May - Apr * May - Apr * May - Apr * May - Apr * May - Apr			May - Jul	May - Jul
	2013/14	2014/15	2015/16	2016/17	2017/18	2017/18	2018/19
Earnings per share
before dilution, SEK	3.01	1.45	0.36	0.33	3.53	0.52	0.43
after dilution, SEK	3.00	1.45	0.36	0.33	3.53	0.52	0.43
Cash flow per share
before dilution, SEK	1.31	1.78	1.00	2.69	3.79	-0.31	-1.39
after dilution, SEK	1.24	1.78	1.00	2.69	3.79	-0.31	-1.39
Shareholders' equity per share
before dilution, SEK	16.39	17.41	16.79	17.73	18.29	14.54	17.91
after dilution, SEK	20.32	17.41	16.79	17.73	18.29	14.54	17.91
Average number of shares
before dilution, 000s	381,277	381,287	381,288	381,306	382,027	382,027	382,027
after dilution, 000s	400,686	381,287	381,288	381,306	382,027	382,027	382,027
Number of shares at closing
before dilution, 000s **	381,287	381,287	381,288	382,027	382,027	382,027	382,027
after dilution, 000s	400,696	381,287	381,288	382,027	382,027	382,027	382,027

* Calculation based on IAS18.

**Number of registered shares at closing excluding treasury shares (1,541,368 per July 31, 2018).

DATA PER QUARTER

		2016/17 * 2017/18					2018/19
SEK M	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Gross order intake	2,662	3,383	3,653	4,366	2,738	3,267	3,833	4,654	3,174
Net sales	1,882	2,434	2,673	3,715	2,504	2,903	2,757	3,409	2,819
EBITA	71	251	266	509	420	566	534	848	386
Operating result	-34	140	144	347	281	440	409	714	238
Cash flow from
operating activities	-139	342	394	1,222	76	403	691	1,235	-381

* Calculation based on IAS18

ORDER INTAKE GROWTH BASED ON CONSTANT EXCHANGE RATES

		2016/17			2017/18				2018/19
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
North and South America, %	-16	4	-6	-19	-6	14	15	10	23
Europe, Middle East and Africa, %	14	-17	116	-32	-4	-5	-5	28	15
Asia Pacific, %	20	10	2	-5	7	-11	33	-9	2
Group, %	4	-2	34	-20	0	0	9	10	12

PARENT COMPANY

INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

	May - Jul	May - Jul
SEK M	2018/19	2017/18
Operating expenses	-48	-56
Financial net	89	16
Income after financial items	41	-40
Tax	8	0
Net income	49	-40
Statement of comprehensive income
Net income	49	-40
Other comprehensive income	-	-
Total comprehensive income	49	-40

BALANCE SHEET

	Jul 31,	Apr 30,
SEK M	2018	2018
Non-current assets
Intangible assets	68	68
Shares in subsidiaries	2,195	2,239
Receivables from subsidaries	2,388	2,411
Other financial assets	14	14
Deferred tax assets	8	0
Total non-current assets	4,672	4,731
Current assets
Receivables from subsidaries	3,010	3,468
Other current receivables	59	137
Other short-term investments	84	83
Cash and cash equivalents	2,881	3,625
Total current assets	6,035	7,312
Total assets	10,707	12,044
Shareholders' equity	2,854	2,823
Non-current liabilities
Long-term interest-bearing liabilities	4,339	4,366
Long-term liabilities to Group companies	39	39
Long-term provisions	9	9
Total non-current liabilities	4,387	4,414
Current liabilities
Short-term interest-bearing liabilities	513	959
Short-term liabilities to Group companies	2,869	3,754
Short-term provisions	0	0
Other current liabilities	84	94
Total current liabilities	3,466	4,807
Total shareholders' equity and liabilities	10,707	12,044

Alternative performance measures

Alternative Performance Measures (APMs) are measures and key figures that Elekta's management and other stakeholders use when managing and analyzing Elekta's business performance. These measures are not substitutes, but rather supplements to financial reporting measures prepared in accordance with IFRS. Key figures and other APMs used by Elekta are defined on www.elekta.com/investors/financials/definitions.php. Definitions and additional information on APMs can also be found on pages 120-122 in the Annual Report 2017/18.

Starting the first quarter of the fiscal year 2018/2019, no items in the income statement are reported as items affecting comparability. Thus, the definition is no longer included in the definitions presented below.

Order and sales growth based on constant exchange rates

Elekta's order intake and sales are, to a large extent, reported in subsidiaries with other functional currencies than SEK, which is the group reporting currency. In order to present order and sales growth on a more comparable basis and to show the impact of currency fluctuations, order and sales growth based on constant exchange rates are presented. The schedules below present growth based on constant exchange rates reconciled to the total growth reported in accordance with IFRS.

CHANGE GROSS ORDER INTAKE	America	North and South	Europe, Middle East, and Africa		Asia Pacific		Group total
	%	SEK M	%	SEK M	%	SEK M		% SEK M
Q1 2018/19 vs. Q1, 2017/18
Change based on constant exchange rates	23	183	15	126	2	17	12	326
Currency effects	2	16	6	52	4	42	4	110
Reported change	25	199	22	178	5	59	16	436
Q1 2017/18 vs. Q1 2016/17
Change based on constant exchange rates	-6	-47	-4	-35	7	74	0	-8
Currency effects	4	27	4	31	3	26	3	84
Reported change	-2	-20	0	-4	10	100	3	76

CHANGE NET SALES	North and South America		Europe, Middle East, and Africa		Asia Pacific		Group total
	%	SEK M	%	SEK M	%	SEK M		% SEK M
Q1 2018/19 vs. Q1, 2017/18
Change based on constant exchange rates	-2	-18	11	95	23	162	10	239
Currency effects	2	15	5	46	2	15	3	76
Reported change	0	-3	16	141	25	177	13	315
Q1 2017/18 vs. Q1 2016/17 *
Change based on constant exchange rates	-3	-21	33	185	13	65	12	229
Currency effects	4	26	4	19	3	14	3	59
Reported change	1	5	37	204	16	79	15	288

'* Calculation based on IAS18

EBITDA

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

SEK M	Q1 2017/18	Q2 2017/18	Q3 2017/18	Q4 2017/18	Q1 2018/19
Operating result/EBIT	281	440	409	714	238
Amortization:
Capitalized development costs	110	96	98	103	120
Assets relating business combinations	29	30	27	30	27
Depreciation	38	36	37	40	41
EBITDA	458	603	571	888	427

Return on capital employed

Return on capital employed is a measure of the profitability after taking into account the amount of total capital used unrelated to type of financing. A higher return on capital employed indicates a more efficient use of capital. Capital employed represents the value of the balance sheet net assets that is the key driver of cash flow and capital required to run the business. It is also used in the calculation of return on capital employed.

	Jul 31,	Okt 31,	Jan 31,	Apr 30,	Jul 31,
SEK M	2017 *	2017 *	2018 *	2018	2018
Profit before tax (12 months rolling)	424	683	960	1,681	1,651
Financial expenses (12 months rolling)	253	232	231	225	225
Profit before tax plus financial expenses	677	915	1,191	1,905	1,877
Total assets	19,659	20,152	20,617	23,760	21,921
Deferred tax liabilities	-668	-669	-593	-511	-504
Long-term provisions	-159	-165	-159	-158	-169
Other long-term liabilities	-15	-5	-57	-63	-59
Accounts payable	-806	-970	-962	-1,132	-841
Advances from customers	-2,537	-2,440	-2,643	-5,316	-4,608
Prepaid income	-1,704	-1,764	-1,830	-1,990	-1,899
Accrued expenses	-1,611	-1,742	-1,688	-1,662	-1,508
Current tax liabilities	-96	-89	-93	-107	-111
Short-term provisions	-196	-172	-140	-186	-165
Derivative financial instruments	-74	-21	-49	-46	-105
Other current liabilities	-212	-230	-300	-257	-255
Capital employed	11,582	11,885	12,103	12,331	11,697
Average capital employed (last five quarters)	11,712	11,765	11,833	11,194	11,367
Return on capital employed	6 %	8 %	10%	17%	17%

'* Calculation based on IAS18

Return on shareholders' equity

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

SEK M	Q1 2017/18 *	Q2 2017/18 *	Q3 2017/18 *	Q4 2017/18	Q1 2018/19
Net income (12 months rolling)	189	382	648	1,348	1,315
Average shareholders' equity excluding non-controlling interests (last five quarters)	6,563	6,604	6,696	6,015	6,271
Return on shareholders' equity	3%	6%	10%	22%	21%
'* Calculation based on IAS18

Operational cash conversion

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

Operational cash conversion
SEK M	Q1 2017/18	Q2 2017/18	Q3 2017/18	Q4 2017/18	Q1 2018/19
Cash flow from operating activities	7 6	403	691	1 235	-381
EBITDA	458	603	571	888	427
Operational cash conversion	16%	67%	121%	139%	-89%

Working capital

In order to optimize cash generation, management focuses on working capital and reducing lead times between orders booked and cash received. A reconciliation of working capital to items in the balance sheet is presented on page 5.

Days sales outstanding (DSO)

DSO is used by management to follow the development of overall payment terms to customers, which have significant impact on working capital and cash flow.

Days sales outstanding (DSO)

	Jul 31,	Okt 31,	Jan 31,	Apr 30,	Jul 31,
SEK M	2017 *	2017 *	2018 *	2018	2018
Accounts receivable	3,032	3,120	3,505	3,402	3,061
Accrued income	1,467	1,545	1,177	1,160	1,004
Advances from customers	-2,537	-2,440	-2,643	-5,316	-4,608
Prepaid income	-1,704	-1,764	-1,830	-1,990	-1,899
Net receivable from customers	258	461	209	-2,744	-2,441
Net sales (12 months rolling)	10,991	11,359	11,434	11,573	11,887
Number of days	365	365	365	365	365
Net sales per day	30	31	31	32	33
Days sales outstanding (DSO)	9	15	7	-87	-75
'* Calculation based on IAS18

Net debt and net debt/EBITDA ratio

Net debt is important to understand 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, 2018	Jul 31, 2018
Long-term interest-bearing liabilities	4,369	4,341
Short-term interest-bearing liabilities	975	513
Cash and cash equivalents and short-term investments	-4,541	-3,547
Net debt	803	1,307
EBITDA (12 months rolling)	2,520	2,489
Net debt/EBITDA ratio	0.32	0.53

Shareholder information

Conference call

Elekta will host a telephone conference at 10:00- 11:00 CET on August 30, with president and CEO Richard Hausmann, and CFO Gustaf Salford.

To take part in the conference call, please dial in about five minutes in advance.

Swedish dial-in number: +46 (0)8 506 395 49 UK dial-in number: +44 (0) 203 008 98 06 US dial-in number: +1 855 831 59 45

The webcast will be through the following link:

http://event.on24.com/wcc/r/1807516- 1/790408FDFD99CE816C3295E2628474B6

This is information that Elekta AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 07:30 CET on August 30, 2018.

For further information, please contact:

Gustaf Salford CFO Elekta AB (publ) +46 8 587 25 487 gustaf.salford@elekta.com

Johan Andersson Director Investor Relations Elekta AB (publ) +46 8 587 25 415 johan.andersson@elekta.com

Financial calendar

Annual General Meeting	August 30, 2018
Interim report May-October 2018/19	November 29, 2018
Interim report May-January 2018/19	February 22, 2019

Elekta AB (publ)

556170 – 4015 Kungstensgatan 18 Box 7593 SE 103 93 Stockholm Sweden