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Elekta

Interim / Quarterly Report Mar 5, 2013

2906_10-q_2013-03-05_e67ebee7-e513-4dfa-8130-fc695689a2e9.pdf

Interim / Quarterly Report

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Interim report May – January 2012/13

  • Order bookings increased 13* percent to SEK 8,080 M (7,186).
  • Net sales increased 11* percent to SEK 6,608 M (5,929).
  • Operating result amounted to SEK 873 M (967) excluding non-recurring items of SEK -24 M (107).
  • Net income amounted to SEK 504 M (687). Earnings per share amounted to SEK 1.31 (1.83) before dilution and SEK 1.30 (1.81) after dilution. In September 2012 a 4:1 share split was conducted. All data per share has been restated pro forma.
  • Cash flow after investments was SEK 335 M (372).
  • Exchange rate movements compared to fiscal year 2011/12 are expected to have a negative impact of approximately three percentage points on growth of net sales as well as operating profit for the 2012/13 fiscal year.
  • On March 1, Elekta launched Versa HD™ a new revolutionary linear accelerator system designed to significantly improve cancer care for the patients. Featuring high dose delivery and precision beam shaping, Versa HD is designed for improved treatment optimization and higher efficiency.
  • The outlook has been adjusted due to effects of recent exchange rate volatility, uncertainty in the US and postponed business in the Middle East. Based on current market conditions, net sales is expected to increase by approximately 15 percent in local currency for the 2012/13 fiscal year. Operating profit is expected to increase by more than 15 percent, excluding currency effects.
Group summary 3 months 3 months 9 months 9 months
Nov - Jan Nov - Jan May - Jan May - Jan Change
SEK M 2012/13 2011/12 2012/13 2011/12
Order bookings 2,856 2,784 8,080 7,186 13%*
Net sales 2,428 2,565 6,608 5,929 11%*
Operating result 386 597 849 1,074 -21%
Net income 231 392 504 687 -27%
Cash flow after investments 112 190 335 372 -10%
Earnings per share after dilution, SEK 0.60 1.04 1.30 1.81 -28%

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

President and CEO comments

Demand in Elekta's markets has been favorable so far this fiscal year. In total, order bookings increased by 13* percent for the first nine months with growth in all regions. In the third quarter order bookings increased by 6* percent.

The North American market has lately been more cautious, mainly due to uncertainty about the budget agreement in the US. Elekta's order bookings was impacted by a decided but not yet implemented reduction in reimbursement levels for Medicare patients receiving treatment from Leksell Gamma Knife®. We provide both linac-based SRS systems and Leksell Gamma Knife® and we remain committed in our pursuit of the best options and effectiveness in treatment of the patients.

The order trend in the Asia Pacific region was excellent and Elekta has strengthened its marketleading position. Several countries there are progressing with structural and long-term expansion of cancer care.

Orders in Europe were overall in line with expectations. The demand scenario is good in most parts of Europe, where Elekta continues to make solutions available for qualitative and cost-efficient cancer care for an increasing number of patients. However, the political uncertainty in the Middle East region resulted in that business has been postponed.

During a well-attended event in Atlanta, US, we recently launched our new linear accelerator system, Versa HDTM. It is a revolutionary system that aims to significantly improve cancer care and quality of life for patients around the world. Versa HDTM has a unique combination of high dose rates, exceptional resolution, speed and low radiation leakage, all key elements for improving cancer care. The system also offers customized solutions for the major cancer indications, enabling more patientspecific care. The interest and initial response from our customers have been very good.

Our long-term development project, aimed at facilitating treatment combined with advanced magnetic resonance (MR) imaging, continues according to plan. The University of Texas MD Anderson Cancer Center in Texas, US, recently joined the consortium of leading clinics contributing to the development of the system together with Elekta.

Cash flow after investments amounted to SEK 335 M (372) for the period. Cash conversion amounted to 44 percent for the first nine months. Our aim remains to achieve cash generation in excess of 70 percent for the fiscal year.

Net sales for the first nine months increased by 11* percent. In the third quarter net sales was lower compared to the strong comparison quarter last year. In the third quarter previous year, the newly acquired Nucletron contributed strongly to net sales, partly due to their fiscal year ended in December and this effect is estimated to SEK 200 M. We anticipate that in the fourth quarter we will see strong growth in net sales and have a substantial contribution from our Brachytherapy business. Operating profit decreased with SEK 94 M to SEK 873 M, excluding non-recurring items. Operating profit was negatively impacted primarily by the lower net sales from Nucletron, increased investments in R&D as well as exchange-rate fluctuations that had a negative effect of approximately SEK 50 M.

We expect a strong fourth quarter. The outlook has been adjusted due to effects of recent exchange rate volatility, uncertainty in the US and postponed business in the Middle East. Based on current market conditions, net sales is expected to increase by approximately 15 percent in local currency for the 2012/13 fiscal year. Operating profit is expected to increase by more than 15 percent excluding currency effects.

Exchange rate movements compared to FY 2011/12 are expected to have a negative impact of approximately three percentage points on growth of net sales as well as operating profit for the 2012/13 fiscal year.

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

Tomas Puusepp President and CEO Presented amounts refer to the nine-month period unless otherwise stated. Amounts within parentheses indicate comparative values for the same period last fiscal year.

Order bookings and order backlog

Order bookings increased 12 percent to SEK 8,080 M (7,186) and 13 percent based on constant exchange rates. During the third quarter order bookings amounted to SEK 2,856 M (2,784).

Order backlog was SEK 11,322 M, compared to SEK 10,546 M on April 30, 2012. Order backlog is converted at closing exchange rates. The translation of the backlog at exchange rates on January 31, 2013 compared to exchange rates on April 30, 2012 resulted in a negative translation difference of SEK 714 M.

Order bookings 3 months 3 months 9 months 9 months 12 months 12 months
Nov - Jan Nov - Jan Change May - Jan May - Jan Change rolling Change May-Apr
SEK M 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12
North and South America 929 1,069 -13% 2,849 2,594 10% 4,336 15% 4,081
Europe, Middle East and Africa 984 1,077 -9% 2,547 2,579 -1% 3,621 1% 3,653
Asia Pacific 943 638 48% 2,684 2,013 33% 3,752 33% 3,081
Group 2,856 2,784 3% 8,080 7,186 12% 11,709 15% 10,815

Market development

North and South America

Order bookings rose 10 percent during the first nine months. Based on constant exchange rates, order bookings rose 9 percent.

Demand in the US has recently been cautious. It is assumed that this is partly related to the finalized budget negotiations in the country. The market has also been impacted by greater uncertainty regarding reimbursement levels for radiation therapy. In Canada, demand for Elekta's cancer care solutions has been good. The growth in underlying demand in the region is expected to continue, primarily due to an aging and growing population. The need for investments is also increasing because the large installed base of linear accelerators is successively being replaced.

As with other emerging markets, the South American market is driven by a major shortage of treatment capacity, as well as a higher focus on improving cancer care. Combined with Elekta's increased presence in selected countries, this supports Elekta's long-term growth opportunities on the continent. In Brazil, a major procurement process for radiation-treatment equipment is ongoing, with a current negative impact on other activities in the country.

The contribution margin for the region was 33 percent (35).

Region Europe, Middle East and Africa

Order bookings declined by 1 percent for the first nine months. Based on constant exchange rates, order bookings rose 2 percent.

The market trend in Europe was as anticipated. Demand is being driven by investments in radiationtreatment equipment, in part to successively replace the installed base and also to increase the need for good and cost-efficient cancer care. However, the political uncertainty in the Middle East region resulted in that business has been postponed.

The contribution margin for the region was 32 percent (33).

Region Asia Pacific

Development was strong and order bookings rose 33 percent for the first nine months. Based on constant exchange, rates order bookings rose 31 percent.

In general, the region is characterized by a major shortage of cancer care capacity, although countries as Australia, Japan, Taiwan, Hong Kong and Singapore have well-developed health care. Elekta is the market leader and, with continued focus on growth, the potential to support these countries' caregivers in their endeavor to develop and improve cancer care is good.

Demand in Japan remained positive during the third quarter. Elekta has a strong presence in neurosurgery and software in the country and is expected to increase its market share in oncology.

The contribution margin for the region was 30 percent (30).

Net sales

Net sales increased 11 percent to SEK 6,608 M (5,929). Based on constant exchange rates, net sales grew by 11 percent.

Net sales 3 months 3 months 9 months 9 months 12 months 12 months
Nov - Jan Nov - Jan Change May - Jan May - Jan Change rolling Change May-Apr
SEK M 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12
North and South America 887 866 2% 2,372 2,113 12% 3,381 15% 3,122
Europe, Middle East and Africa 781 969 -19% 2,125 2,075 2% 3,256 9% 3,206
Asia Pacific 760 730 4% 2,111 1,741 21% 3,090 20% 2,720
Group 2,428 2,565 -5% 6,608 5,929 11% 9,727 14% 9,048

Earnings

Operating result excluding non-recurring items decreased 10 percent to SEK 873 M (967). The effect from changes in exchange rates was negative with approximately SEK 50 M, including hedges. Gross margin was 45 percent (46). Operating margin amounted to 13 percent (16).

Research and development expenditures, before capitalization of development costs, increased to SEK 679 M (559) equal to 10 percent (9) of net sales.

The change in unrealized exchange rate effects from cash flow hedges amounted to SEK 58 M (-125) and is reported in other comprehensive income. Closing balance of unrealized exchange rate effects from cash flow hedges in shareholders' equity was SEK 92 M (34 on April 30, 2012) exclusive of tax.

Net financial items amounted to SEK -159 M (-104). Financial net was negatively affected by participations in associates due to start-up losses in one of the associates.

Costs for Elekta's ongoing incentive programs amounted to SEK 5 M (20).

Income before tax amounted to SEK 690 M (970). Tax expense amounted to SEK 186 M (283) or 27 percent (29). Net income amounted to SEK 504 M (687).

Earnings per share amounted to SEK 1.31 (1.83) before dilution and SEK 1.30 (1.81) after dilution. In September 2012 a 4:1 share split was conducted. All data per share has been restated pro forma.

Return on shareholders' equity amounted to 22 percent (32) and return on capital employed amounted to 18 percent (27).

Investments and depreciation

Investments in intangible and tangible fixed assets amounted to SEK 361 M (309). Amortization of intangible assets and depreciation of tangible fixed assets amounted to SEK 259 M (213). Capitalization of development costs and amortization of capitalized development costs amounted to net SEK 130 M (139), of which 104 M (116) relates to the R&D function. Capitalization within the R&D function amounted to SEK 184 M (170) and amortization to SEK 80 M (54).

Liquidity and financial position

Cash flow from operating activities was SEK 695 M (684). Cash flow after investments amounted to SEK 335 M (372). Working capital has decreased by SEK 30 M from April 30. Inventory has increased ahead of the significant shipments planned in the fourth quarter. The increase in working capital of SEK 141 M during the last quarter has mainly come from accounts receivable.

The balance sheet has been affected by changes in exchange rates. Important foreign currencies used for translation of the balance sheet have decreased in value during the period and especially during the third quarter. The exchange rate effect from the translation of cash and cash equivalents amounted to SEK -117 M (36), of which SEK -86 M (9) relates to the third quarter. The translation difference in long-term interest-bearing liabilities amounted to SEK -117 M (245), of which SEK -88 M (103) relates to the third quarter. Shareholder's equity has been affected by exchange rate differences amounting to SEK -353 M (170), of which SEK -172 M (71) in the third quarter.

Cash and cash equivalents amounted to SEK 1,554 M (1,895 on April 30, 2012) and interest-bearing liabilities amounted to SEK 4,376 M (4,530 on April 30, 2012). Thus, net debt amounted to SEK 2,822 M (2,635 on April 30, 2012). Net debt/equity ratio was 0.59 (0.53 on April 30, 2012).

Shares

In September 2012 a 4:1 share split was conducted. During the period 451,854 new B-shares were subscribed through exercise of warrants distributed within the framework of the established employee option programs and 17,125 new B-shares through conversion of convertibles. Total number of registered shares on January 31, 2013 was 382,823,805 divided between 14,250,000 A-shares and 368,573,805 B-shares.

Employees

The average number of employees was 3,292 (3,225). The average number of employees in the Parent Company was 25 (20).

The number of employees on January 31, 2013 totaled 3,471. On April 30, 2012, the number of employees in Elekta totaled 3,366.

Risks and uncertainties

Elekta's ability to deliver treatment equipment is to a large extent dependent on customers' readiness to receive the delivery and to pay within the agreed timeframe. This results in a risk of delayed deliveries and corresponding delayed revenue recognition and cash flow.

The Group's credit risks are normally limited since customer operations are, to a large extent, financed either directly or indirectly by public funds.

A weak economic development and high levels of public debt might, for some markets, mean less availability of financing for private customers and reduced future health care spending by the governments.

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.

Product safety issues and the regulatory approval processes in various countries constitute a risk since they could delay the ability of introducing products into the countries concerned.

A description of the generic risks and uncertainties in Elekta's business can be found in the Annual Report 2011/12 on page 74 and in note 2.

Other significant events

Acquisition of Radon Ltda. group

On June 19, 2012, Elekta acquired Radon Ltda. group, the leading linear accelerator (linac) service company in Brazil. Most of the service contracts held by the company are with clinics that use equipment delivered by Siemens. The acquisition significantly strengthens Elekta's market position, making it the leading organization for installation, service and aftermarket services. Through the acquisition, Elekta's customer base has increased with 25 percent in Brazil. The acquisition price consists of one fixed amount of SEK 69 M (BRL 21 M) and one variable amount of SEK 27 M (BRL 8 M). Elekta has consolidated Radon Ltda. from June 19, 2012. Goodwill and identifiable intangible assets amount to approximately SEK 92 M (BRL 28 M) calculated with the full variable amount of the acquisition price. Transaction costs related to the acquisition have been expensed when incurred and amount to less than SEK 1 M. Radon Ltda. is expected to add net sales to Elekta by approximately SEK 40 M during the 2012/13 fiscal year. From the date of acquisition Radon Ltda. has contributed with an operating result of BRL 940 K (SEK 2,050 K). The transaction is forecasted to be accretive to Elekta earnings per share (EPS) during Elekta's fiscal year 2012/13.

Elekta won USD 35 million tender in China

In August, 2012, Elekta won a major tender where the Health Department of the People's Liberation Army (PLA) is expanding its capacity to treat cancer. Elekta will deliver a comprehensive range of clinical solutions, including Leksell Gamma Knife®, linear accelerators, brachytherapy equipment and associated software. The total value of the contract amounts to USD 35 million, making it Elekta's largest deal ever in China. The majority of the order was booked in the second quarter.

Varian Medical Systems filed a lawsuit in the United States against Elekta

The lawsuit with Varian Medical System continues and Elekta is defending itself against the allegations made. So far the costs amount to SEK 24 M for the nine-month period. At present no assessment can be made regarding the costs for the full fiscal year.

Outlook for fiscal year 2012/13

The outlook has been adjusted due to effects of recent exchange rate volatility, uncertainty in the US and postponed business in the Middle East. Based on current market conditions, net sales is expected to increase by approximately 15 percent in local currency for the 2012/13 fiscal year. Operating profit is expected to increase by more than 15 percent excluding currency effects.

Exchange rate movements compared to FY 2011/12 are expected to have a negative impact of approximately three percentage points on growth of net sales as well as operating profit for the 2012/13 fiscal year.

The outlook is changed from: For the 2012/13 fiscal year, net sales is expected to grow by more than 15 percent in local currency. Operating profit in SEK is expected to grow by more than 15 percent. Currency is estimated to have a neutral impact including hedging effects on operating profit.

Stockholm, March 5, 2013

Tomas Puusepp President and CEO

Conference call

Elekta will host a telephone conference at 10:00 – 11:00 CET on March 5, with President and CEO Tomas Puusepp and CFO Håkan Bergström.

To take part in the conference call, please dial in about 5-10 minutes in advance and use the access code 927781.

Swedish dial-in number: +46 (0)8 5052 0110, UK dial-in number: +44 (0)20 7162 0077, US dial-in number: + 1 877 491 0064.

The telephone conference will also be broadcasted over the internet (listen only). Please use the link: http://webeventservices.reg.meeting-stream.com/73934\_elekta

Financial information

Year-end report May – April 2012/13 June 5, 2013 Interim report May – July 2013/14 September 3, 2013 Annual General Meeting 2013 September 3, 2013 Interim report May – October 2013/14 December 4, 2013

For further information, please contact:

Håkan Bergström, CFO, Elekta AB (publ) +46 8 587 25 547, [email protected]

Johan Andersson, Director Investor Relations, Elekta AB (publ) +46 8 587 25 415, [email protected]

Elekta AB (publ)

Corporate registration number 556170-4015 Box 7593, SE 103 93 Stockholm, Sweden

The above information is such that Elekta AB (publ) shall make public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 07:30 CET on March 5, 2013.

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 correspond to those presented in the Annual Report 2011/12 with exceptions related to a limited number of revised standards and interpretations which are effective and applied from the fiscal year 2012/13. The changes have not had any material impact on the financial reports.

Exchange rates Average rate Closing rate
May - Jan May - Jan Change Jan 31, Apr 30, Change
Country Currency 2012/13 2011/12 2013 2012
Euroland 1 EUR 8.637 9.072 -5% 8.622 8.900 -3%
Great Britain 1 GBP 10.736 10.465 3% 10.061 10.943 -8%
Japan 1 JPY 0.084 0.084 0% 0.070 0.084 -17%
United States 1 USD 6.758 6.568 3% 6.360 6.721 -5%

Regarding foreign group companies, order bookings and income statement are translated at average exchange rates for the reporting period while order backlog and balance sheet are translated at closing exchange rates.

CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

SEK M 3 months 3 months 9 months 9 months 12 months 12 months
Income statement Nov - Jan
2012/13
Nov - Jan
2011/12
May - Jan
2012/13
May - Jan
2011/12
rolling
2012/13
May - Apr
2011/12
Net sales
Cost of products sold
2,428
-1,341
2,565
-1,324
6,608
-3,624
5,929
-3,230
9,727
-5,225
9,048
-4,831
Gross income 1,087 1,241 2,984 2,699 4,502 4,217
Selling expenses
Administrative expenses
-284
-227
-291
-204
-882
-663
-785
-559
-1,181
-858
-1,084
-754
R&D expenses -198 -152 -575 -443 -736 -604
Exchange rate differences 15 29 9 55 16 62
Operating result before non-recurring items 393
623 873
967 1,743 1,837
Transaction and restructuring costs
Net gain from divested business
0 -29

3
0 -76

183
-92
-3
-168

180
Other non-recurring items -7 -24 -24
Operating result 386 597 849 1,074 1,624 1,849
Result from participations in associates -15 -4 -23 -4 -20 -1
Interest income
Interest expenses and similar items
8
-63
15
-55
24
-159
35
-147
34
-212
45
-200
Exchange rate differences 0 2 -1 12 2 15
Income before tax 316 555 690 970 1,428 1,708
Income taxes -85 -163 -186 -283 -383 -480
Net income 231 392 504 687 1,045 1,228
Net income attributable to:
Parent Company shareholders 230 390 497 683 1,041 1,227
Non-controlling interests 1 2 7 4 4 1
Earnings per share before dilution, SEK 0.61 1.05 1.31 1.83 2.74 3.26
Earnings per share after dilution, SEK 0.60 1.04 1.30 1.81 2.72 3.23
Statement of comprehensive income
Net income 231 392 504 687 1,045 1,228
Other comprehensive income:
Revaluation of cash flow hedges
Translation differences from foreign operations
19
-167
-37
69
62
-345
- 125
165
93
-339
-94
171
Hedge of net investment -5 2 -8 5 -4 9
Income tax relating to components of
other comprehensive income -2 9 -13 32 -23 22
Other comprehensive income for the period -155 43 -304 77 -273 108
Comprehensive income for the period 76 435 200 764 772 1,336
Comprehensive income attributable to:
Parent Company shareholders
Non-controlling interests
75
1
434
1
193
7
761
3
767
5
1,335
1
CASH FLOW
SEK M
Operating cash flow 399 603 665 858 1,383 1,576
Change in working capital -141 -288 30 -174 -437 -641
Cash flow from operating activities
Investing activities
258
-146
315
-125
695
-360
684
-312
946
-480
935
-432
Cash flow after investments
Business combinations and investments in associates
112
0
190
4
335
-77
372
-3,167
466
-76
503
-3,166
Cash flow after investments and business combinations 112 194 258 -2,795 390 -2,663
Cash flow from financing activities -60 98 -481 2,061 622 3,164
Cash flow for the period 52 292 -223 -734 1,012 501
Exchange rate differences -86 9 -117 36 -122 31
Change in cash and cash equivalents for the period -34 301 -340 -698 890 532

A policy change has been applied for the cash flow. Investments in capitalized intangible assets were previously reported as operating cash flow but are now reported as investing activities. The figures for previous periods have been changed retroactively to enable comparability.

CONSOLIDATED BALANCE SHEET

2013
2012
2012
Non-current assets
Intangible assets
6,334
6,439
6,457
Tangible fixed assets
440
403
407
Financial assets
211
128
147
Deferred tax assets
114
262
233
Total non-current assets
7,099
7,232
7,244
Current assets
Inventories
940
846
755
Accounts receivable
2,810
2,411
2,692
Other current receivables
2,308
2,043
2,649
Cash and cash equivalents
1,554
665
1,895
Total current assets
7,612
5,965
7,991
Total assets
14,711
13,197
15,235
Elekta's owners' equity
4,748
4,293
4,999
Non-controlling interests
8
14
11
Total equity
4,756
4,307
5,010
Non-current liabilities
Long-term interest-bearing liabilities
4,267
2,627
4,417
Deferred tax liabilities
568
584
675
Other long-term liabilities
149
146
192
Total non-current liabilities
4,984
3,357
5,284
Current liabilities
Short-term interest-bearing liabilities
109
914
113
Accounts payable
721
555
842
Advances from customers
1,363
1,158
1,086
Other current liabilities
2,778
2,906
2,900
Total current liabilities
4,971
5,533
4,941
Total equity and liabilities
14,711
13,197
15,235
Assets pledged
4
4
7
Contingent liabilities
70
62
68
SEK M Jan 31, Jan 31, Apr 30,

CHANGES IN EQUITY

SEK M Jan 31, Jan 31, Apr 30,
2013 2012 2012
Attributable to Elekta's owners
Opening balance 4,999 3,832 3,832
Comprehensive income for the period 193 761 1,335
Incentive programs including deferred tax -21 12 6
Exercise of warrants 53 64 115
Option value convertible loan 86
Dividend -476 -376 -376
Total 4,748 4,293 4,999
Attributable to non-controlling interests
Opening balance 11 1 1
Dividend -10
Business combination 10 10
Comprehensive income for the period 7 3 1
Total 8 14 11
Closing balance 4,756 4,307 5,010
KEY FIGURES 12 months
May - Apr
2007/08
12 months
May - Apr
2008/09
12 months
May - Apr
2009/10
12 months
May - Apr
2010/11
0
12 months
May - Apr
2011/12
9 months
May -Jan
2011/12
9 months
May -Jan
2012/13
Order bookings, SEK M 5,882 7,656 8,757 9,061 10,815 7,186 8,080
Net sales, SEK M 5,081 6,689 7,392 7,904 9,048 5,929 6,608
Operating result, SEK M 650 830 1,232 1,502 1,849 1,074 849
Operating margin before non
recurring items
13% 12% 17% 19% 20% 16% 13%
Operating margin 13% 12% 17% 19% 20% 18% 13%
Profit margin 12% 12% 16% 19% 19% 16% 10%
Shareholders' equity, SEK M 1,813 2,555 3,244 3,833 5,010 4,307 4,756
Capital employed, SEK M 3,262 4,182 4,283 4,714 9,540 7,848 9,132
Equity/assets ratio 29% 32% 38% 43% 33% 33% 32%
Net debt/equity ratio 0.58 0.31 -0.04 -0.13 0.53 0.67 0.59
Return on shareholders' equity 23% 27% 30% 30% 29% 32% 22%
Return on capital employed 24% 24% 30% 35% 28% 27% 18%
DATA PER SHARE 12 months 12 months 12 months 12 months 12 months 9 months 9 months
May - Apr May - Apr May - Apr May - Apr May - Apr May -Jan May -Jan
2007/08 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13
Earnings per share
before dilution, SEK 1.12 1.50 2.27 2.76 3.26 1.83 1.31
after dilution, SEK 1.11 1.50 2.25 2.73 3.23 1.81 1.30
Cash flow per share
before dilution, SEK -0.76 1.58 2.63 1.31 -7.07 -7.44 0.68
after dilution, SEK -0.76 1.58 2.60 1.30 -7.01 -7.36 0.68
Shareholders' equity per share
before dilution, SEK 4.93 6.92 8.74 10.22 13.19 11.38 12.45
after dilution, SEK 5.01 6.92 9.38 10.61 13.31 11.63 12.42
Average number of shares
before dilution, 000s 368,798 368,114 368,832 373,364 376,431 375,896 380,443
after dilution, 000s 369,917 368,114 371,780 378,028 380,125 379,800 381,435
Number of shares at closing
before dilution, 000s 366,281 368,498 371,181 374,951 *) 378,991 *) 377,208 *) 381,237 *)
after dilution, 000s 368,979 368,498 383,580 383,618 384,284 383,564 382,229

Dilution 2007/08 refers to warrants program 2004/2008. Dilution 2009/10 - 2011/12 refers to warrants programs 2007/2012 and 2008/2012 and share programs 2009/2012, 2010/2013 and 2011/2014. Dilution 2012/13 refers to share programs 2009/2012, 2010/2013 and 2011/2014.

In September 2012 a 4:1 share split was conducted. The data per share and number of shares has been restated pro forma.

*) Number of registered shares at closing exluding treasury shares (1,586,888 shares at January 31, 2013 and 2,008,000 at other times).
Data per quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
SEK M 2010/11 2010/11 2010/11 2010/11 2011/12 2011/12 2011/12 2011/12 2012/13 2012/13 2012/13
Order bookings 1,889 2,238 1,914 3,020 1,700 2,702 2,784 3,629 2,252 2,972 2,856
Net sales 1,627 1,879 1,822 2,576 1,428 1,936 2,565 3,119 1,695 2,485 2,428
Operating profit 153 302 296 751 92 385 597 775 63 400 386
Cash flow from
operating activities -30 234 256 380 159 83 234 159 -151 525 258
Order bookings growth based
on unchanged exchange rates Q1 Q2 Q3 Q4
Q1
Q2 Q3
Q4
Q1 Q2 Q3
SEK M 2010/11 2010/11 2010/11 2010/11 2011/12 2011/12 2011/12 2011/12 2012/13 2012/13 2012/13
North and South America 0% 9% 79% -14%
9%
8% **) 1% **) 20% **) 28% **) 13% *) -11%
Europe, Middle East and Africa 41% -16% -25% 35%
-24%
31% **) 34% **) -8% **) -3% **) 4% *) -5%
Asia Pacific 16% 42% -5% 25%
38%
6% **) -4% **) 19% **) 11% **) 17% *) 53%
Group 19% 7% 7% 9%
2%
14% **) 11% **) 11% **) 13% **) 11% *) 6%

*) calculated for comparable units

**) excluding Nucletron

Segment reporting

Elekta applies geographical segmentation. Order bookings, net sales and contribution margin for respective region are reported to Elekta's CFO and CEO (chief operating decision makers). In the regions' operating expenses cost of products sold and expenses are directly attributable to the respective region reported. 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.

Segment reporting
May-Jan 2012/13
North and Europe, Africa Asia Pacific Group total % of
SEK M South America and Middle East net sales
Net sales 2,372 2,125 2,111 6,608
Operating expenses -1,578 -1,451 -1,482 -4,511 68%
Contribution margin 794 674 629 2,097 32%
Contribution margin, % 33% 32% 30%
Global costs -1,224 19%
Operating result before non-recurring items 873 13%
Non-recurring items -24
Operating result 849 13%
Net financial items
Income before tax
-159
690
May-Jan 2011/12
North and Europe, Africa Asia Pacific Total % of
SEK M South America and Middle East net sales
Net sales 2,113 2,075 1,741 5,929
Operating expenses -1,383 -1,399 -1,216 -3,998 67%
Contribution margin 730 676 525 1,931 33%
Contribution margin, % 35% 33% 30%
Global costs -964 16%
Operating result before non-recurring items 967 16%
Non-recurring items 107
Operating result 1,074 18%
Net financial items -104
Income before tax 970
May-Apr 2011/12
North and Europe, Africa Asia Pacific Group total % of
SEK M South America and Middle East net sales
Net sales 3,122 3,206 2,720 9,048
Operating expenses -1,981 -2,095 -1,854 -5,930 66%
Contribution margin 1,141 1,111 866 3,118 34%
Contribution margin, % 37% 35% 32%
Global costs -1,281 14%
Operating result before non-recurring items 1,837 20%
Non-recurring items 12
Operating result 1,849 20%
Net financial items -141
Income before tax 1,708
Rolling 12 months Feb-Jan 2012/13 North and Europe, Africa Asia Pacific Group total % of
SEK M South America and Middle East net sales
Net sales 3,381 3,256 3,090 9,727
Operating expenses -2,176 -2,147 -2,120 -6,443 66%
Contribution margin 1,205 1,109 970 3,284 34%
Contribution margin, % 36% 34% 31%
Global costs -1,541 16%
Operating result before non-recurring items 1,743 18%
Non-recurring items -119
Operating result 1,624 17%
Net financial items -196
Income before tax 1,428

Elekta's operations are characterized by significant quarterly variations in delivery 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.

PARENT COMPANY

INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

9 months 9 months
May - Jan May - Jan
SEK M 2012/13 2011/12
Operating expenses -108 -95
Financial items -5 -46
Income after financial items -113 -141
Taxes 30 37
Net income -83 -104
Statement of comprehensive income
Net income -83 -104
Other comprehensive income -6 -4
Total comprehensive income -89 -108
BALANCE SHEET
Jan 31, Apr 30,
SEK M 2013 2012
Non-current assets
Shares in subsidiaries
1,837 1,764
Receivables from subsidaries 2,743 2,754
Other financial assets 64 53
Deferred tax assets 47 15
Total non-current assets 4,691 4,586
Current assets
Receivables from subsidaries 2,442 2,608
Other current receivables 88 113
Cash and cash equivalents 1,299 1,347
Total current assets 3,830 4,068
Total assets 8,520 8,654
Shareholders' equity 1,792 2,304
Untaxed reserves 30 30
Non-current liabilities
Long-term interest-bearing liabilities 4,266 4,417
Long-term liabilities to Group companies 38 50
Long-term provisions 23 22
Total non-current liabilities 4,327 4,489
Current liabilities
Short-term liabilities to Group companies 2,257 1,705
Accounts payable 8 12
Other current liabilities 107 114
Total current liabilities 2,372 1,831
Total shareholders' equity and liabilities 8,520 8,654
Assets pledged
Contingent liabilities

1,116

1,043
Elekta AB (publ) Interim report May – January 2012/13

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