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Elekta

Quarterly Report Jun 5, 2012

2906_10-k_2012-06-05_9803fabc-7588-4dd6-8d61-a4fcf4b5d20c.pdf

Quarterly Report

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Year-end report May – April 2011/12

  • Order bookings increased to SEK 10,815 M (9,061), equivalent to 10* percent excluding Nucletron.
  • Net sales increased to SEK 9,048 M (7,904), equivalent to 7* percent excluding Nucletron. Including Nucletron net sales grew by 18* percent whereof Nucletron contributed with 11 percentage points.
  • Operating result increased by 22 percent to SEK 1,837 M (1,502) excluding nonrecurring items of SEK 12 M (−) (see page 4).
  • Net income increased by 19 percent to SEK 1,228 M (1,031). Earnings per share amounted to SEK 13.04 (11.04) before dilution and SEK 12.91 (10.91) after dilution.
  • Cash flow from operating activities decreased by 24 percent to SEK 635 M (840). Cash flow after investments was SEK -2 663 M (491), including acquisition effects of SEK -3 166 M (-259).
  • The board proposes a dividend of SEK 5.00 (4.00) per share, corresponding to around SEK 473 M and 39 percent of net profit.
  • On September 15, 2011, Elekta completed the acquisition of Nucletron, world leader in brachytherapy treatment planning and delivery.
  • On September 30, 2011, Elekta divested its pathology business, PowerPath®. The net gain amounted to SEK 180 M based on current exchange rate.
  • During the fourth quarter, a convertible bond issue was conducted, with preferential rights for the company's shareholders. The issue was fully subscribed and raised approximately SEK 1,894 M for the company, before transaction costs.
  • For fiscal year 2012/13, net sales is expected to grow by more than 15 percent in local currency, including Nucletron. Operating profit in SEK is expected to grow by more than 17 percent. Currency is estimated to have a positive effect of about SEK 50 M including hedging effects on earnings for fiscal year 2012/13.
Group summary 3 months 3 months 12 months 12 months
Feb - Apr Feb - Apr May - Apr May - Apr Change
SEK M 2011/12 2010/11 2011/12 2010/11
Order bookings 3,629 3,020 10,815 9,061 10%*
Net sales 3,119 2,576 9,048 7,904 18%*
Operating result 775 751 1,849 1,502 23%
Net income 541 531 1,228 1,031 19%
Cash flow from operating activities 159 380 635 840 -24%
Earnings per share after dilution, SEK 5.68 5.61 12.91 10.91 18%

* Compared to last fiscal year at unchanged exchange rates.

President and CEO comments

I am delighted with and proud of Elekta's performance in the fourth quarter and for the full-year 2011/12. Our focus on continuously advancing cancer care solutions in cooperation with our customers, combined with strategic investments in emerging markets, generated favorable results. Fourth-quarter order bookings rose 11* percent and to 10* percent for the full-year. The full-year trend was particularly strong in North and South America with an increase of 11* percent, and in Asia, where order bookings rose 14* percent. Our assessment is that we are growing faster than the market as a whole and thus strengthening our market position.

During the fourth quarter, we received clearance to CE mark our new multi-leaf collimator Agility, enabling patients in Europe to now benefit from treatments using the new solution. Agility is a revolutionary system aimed at improving cancer treatment and entails significant advantages for both patients and hospitals. In the US, we have applied for 510(k) clearance of Agility.

Similar to the preceding quarter, deliveries in the fourth quarter were favorable and net sales rose 11* percent. For the full-year, including Nucletron, growth in local currencies totaled 18 percent, of which the acquisition of Nucletron accounted for about 11 percentage points.

The operating result rose 22 percent for the full-year. Nucletron contributed with approximately 13 percentage points to the increase. The operating margin improved by one percentage point to 20 percent, primarily as a result of the leveraging that higher volumes have on the fixed cost base.

The initial phase of the strategic review of Elekta's MEG operations is completed. We remain strongly committed to the clinical MEG community and when improvements have been fully implemented, we assume strengthened financial performance.

Elekta foresees significant potential for further growth, both through expansion in emerging markets and through improved market positions in established markets. Looking to the year ahead, we believe that market demand will generally remain favorable. The trend in emerging markets is expected to be strong and the positive trend in North America is expected to continue. The recent financial debt crisis in Europe is assessed as only having had a limited impact on market conditions so far. The demand scenario in Europe is mixed, with a continued robust trend in northern regions and in emerging markets, while the trend in southern regions is expected to be weaker. The recent announcement by one of the major competitors to exit the market for linear accelerators is expected to further improve Elekta's growth opportunities.

Elekta is stronger than ever and I am looking forward to the coming fiscal year with confidence. We will continue our efforts to improve our cancer care solutions with a focus on patients and continue to pursue our growth strategy. For the fiscal year 2012/13, net sales is expected to grow by more than 15 percent in local currency, including Nucletron. The operating result in SEK is expected to grow by more than 17 percent. Currency is estimated to have a positive effect of about SEK 50 M. We look forward to even more patients gaining access to advanced cancer care for cure and a better quality of life.

Tomas Puusepp President and CEO

*Excluding Nucletron and based on unchanged exchange rates

Order bookings and order backlog

Order bookings increased 19 percent to SEK 10,815 M (9,061). Order bookings increased 10 percent excluding Nucletron and based on unchanged exchange rates. Order bookings during the fourth quarter amounted to SEK 3,629 M (3,020).

Order backlog was SEK 10,546 M, compared to SEK 8,147 M on April 30, 2011. Order backlog is converted at closing exchange rates. The translation of the backlog at exchange rates on April 30, 2012 compared to exchange rates on April 30, 2011 resulted in a positive translation difference of SEK 699 M.

Order bookings 3 months 3 months 12 months 12 months
Feb - Apr Feb - Apr Change May - Apr May - Apr Change
SEK M 2011/12 2010/11 2011/12 2010/11
North and South America 1,487 1,186 25% 4,081 3,507 16%
Europe, Middle East and Africa 1,074 1,018 6% 3,653 3,077 19%
Asia Pacific 1,068 816 31% 3,081 2,477 24%
Group 3,629 3,020 20% 10,815 9,061 19%

Market development

Region North and South America

Order bookings continued to trend positively and increased by 25 in the quarter and by 16 percent for the year. Excluding Nucletron and based on unchanged exchange rates, order bookings increased with 20 percent in the quarter and by 11 percent for the year.

In the North American market, demand strengthened for radiotherapy solutions. This was primarily attributable to a rising incidence of cancer among a growing and aging population, as well as the need for investments to replace the large installed base of linear accelerators. Elekta's North American order bookings rose 13 percent for the full-year, excluding Nucletron and based on unchanged exchange rates. Elekta has been entrusted with delivering radiotherapy solutions to a number of major customers in North America, including US Oncology. Elekta is the second-largest player in the North American market and is deemed to be growing faster than the market as a whole.

Like other emerging markets, the South American market is driven by a substantial capacity shortage of treatment and an increased focus on improving cancer care. Elekta's order bookings grew strongly in South America during the fourth quarter. When combined with Elekta's increasing presence in selected countries, this level of progress supports the company's growth prospects on this continent.

The contribution margin for the region was 37 percent (34).

Region Europe, Middle East and Africa

Order bookings increased by 6 percent during the quarter and by 19 percent for the year. Excluding Nucletron and based on unchanged exchange rates, order bookings decreased by 8 percent during the quarter (increase of 35 percent in the year-earlier period), but rose by 5 percent for the year.

The market trend was mixed, with favorable growth in northern regions of Europe and in emerging markets. Order bookings for the year were particularly strong in the UK and Germany. The southern regions of Europe and the North African countries experienced a weaker trend.

Emerging markets are generally characterized by a rising incidence of cancer and a lack of linear accelerator capacity. During the year, Elekta secured substantial orders from Russia.

The long-term, sustainable growth rate is expected to continue, particularly as a result of strong emerging markets in Eastern Europe and the Middle East.

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

Region Asia Pacific

The trend in order bookings was strong rising by 31 percent in the quarter and 24 percent for the year. Excluding Nucletron and based on unchanged exchange rates order bookings rose 19 percent during the quarter and 14 percent for the full-year.

In general, the region is characterized by a major capacity shortage of treatment, although countries including Australia, Japan, Taiwan, Hong Kong and Singapore have highly developed healthcare systems. Elekta is the market leader, and by maintaining a focus on growth, the company is well positioned to support care providers in these countries in their endeavor to advance and enhance cancer care. Order bookings were highly favorable in China and India, in which Elekta is the leader in radiotherapy.

The demand trend in Japan gave positive indications during the fourth quarter. Elekta has a strong presence in neurosurgery and software and is well positioned to increase its market share in oncology. In Japan, only 25-30 percent of cancer patients receive radiation therapy, compared with more than 50 percent in Europe.

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

Net sales

Net sales increased 14 percent to SEK 9,048 M (7,904) equivalent to 18 percent based on unchanged exchange rates. Excluding Nucletron and based on unchanged exchange rates, net sales grew by 7 percent.

Net sales 3 months 3 months 12 months 12 months
Feb - Apr Feb - Apr Change May - Apr May - Apr Change
SEK M 2011/12 2010/11 2011/12 2010/11
North and South America 1,009 821 23% 3,122 2,818 11%
Europe, Middle East and Africa 1,131 913 24% 3,206 2,795 15%
Asia Pacific 979 842 16% 2,720 2,291 19%
Group 3,119 2,576 21% 9,048 7,904 14%

Earnings

Operating result excluding non-recurring items increased 22 percent to SEK 1,837 M (1,502). The increase is mainly related to higher volumes. The effect from changes in exchange rates was negative of approximately SEK 100 M. Gross margin amounted to 47 percent (46). Operating margin amounted to 20 percent (19). Selling and administrative expenses equaled to 20 (22) percentage of net sales.

Non-recurring items comprise transaction costs and restructuring costs related to the acquisition of Nucletron of SEK -168 M (-) and net gain from the divestment of the pathology business of SEK 180 M (-) based on current exchange rate.

Research and development expenditures, before capitalization of development costs, increased to SEK 778 M (638) equal to 9 percent (8) of net sales.

Costs for Elekta's ongoing incentive programs amounted to SEK 35 M (47).

The change in unrealized exchange rate effects from cash flow hedges amounted to SEK -94 M (62) and is reported in other comprehensive income. Closing balance of unrealized exchange rate effects from cash flow hedges in shareholders' equity was SEK 34 M (128 on April 30, 2011) exclusive of tax.

Net financial items amounted to SEK -141 M (-38). The change over last year is mainly due to the financing of the acquisition of Nucletron.

Income before tax amounted to SEK 1,708 M (1,464). Tax expense amounted to SEK 480 M (433) or 28 percent (30). Net income amounted to SEK 1,228 M (1,031).

Earnings per share amounted to SEK 13.04 (11.04) before dilution and SEK 12.91 (10.91) after dilution.

Return on shareholders' equity amounted to 29 percent (30) and return on capital employed amounted to 28 percent (35).

Investments and depreciation

Investments in intangible and tangible fixed assets amounted to SEK 432 M (274). Amortization of intangible assets and depreciation of tangible fixed assets amounted to SEK 295 M (241). Capitalization of development costs and amortization of capitalized development costs amounted to net SEK 201 M (92), of which 174 M (86) relates to the R&D function. Capitalization within the R&D function amounted to SEK 246 M (148) and amortization to SEK 72 M (62).

Liquidity and financial position

Cash flow from operating activities was SEK 635 M (840). Cash flow after investments amounted to SEK -2 663 M (491), including business combinations, business divestment and investment in associate of net SEK -3 166 M (-259). Cash conversion was 33 percent (59). In cash flow from operating activities, SEK 170 M is included related to restructuring and transaction costs associated with the acquisition of Nucletron. Cash and cash equivalents amounted to SEK 1,895 M (1,363) and interest-bearing liabilities amounted to SEK 4,530 M (881). Thus, net debt amounted to SEK 2,635 M (net cash 482). Net debt/equity ratio was 0.53 (-0.13).

Shares

During the year 1,010,147 new Series B shares were subscribed through exercise of warrants distributed within the framework of the established employee option programs. Total number of registered shares on April 30, 2012 was 95,249,816 divided between 3,562,500 A-shares and 91,687,316 B-shares.

Employees

The average number of employees was 3,162 (2,621). The average number of employees in the Parent Company was 22 (22).

The number of employees on April 30, 2012 totaled 3,366 (2,760).

The acquisition of Nucletron has contributed to an increase of approximately 500 employees.

Risks and uncertainties

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.

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.

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

The recent financial debt crisis in Europe is assessed as only having had a limited impact on market conditions so far.

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 2010/11 on page 63 and in note 2.

Acquisition of Nucletron

On September 15, 2011, Elekta acquired 100 percent of the shares as well as votes in Nucletron (New Nucletron Company B.V.), with registered office in Veenendaal, the Netherlands. Nucletron is world leading in brachytherapy, treatment planning and delivery. The acquisition cost amounted to SEK 3,385 M (EUR 373 M). Goodwill and identifiable intangible assets, mainly customer relationships and certain technology, amount to SEK 3,513 M (EUR 387 M) according to the purchase price allocation. Elekta has consolidated Nucletron from September 15, 2011. From the date of acquisition Nucletron has contributed with order bookings of SEK 1,182 M, net sales of SEK 873 M and operating result of SEK 189 M. Transaction costs related to the acquisition have been expensed when incurred and amount to approximately SEK 40 M. Restructuring costs are expected to amount to SEK 130 M of which SEK 128 M have been expensed in the post-acquisition period. Elekta expects the integrated businesses to generate both revenue and cost synergies. Annual cost synergies have been estimated to approximately SEK 75 M and are expected to be realized in fiscal year 2012/13.

Purchase price and goodwill:
------------------------------
Cash paid 3,385 373
Total purchase price 3,385 373
Reduced by fair value of acquired net assets -1,088 -120
Goodwill 2,297 253
Acquired assets and liabilities according to purchase price allocations:
Intangible assets 1,216 134
Other non-current assets 157 17
Inventories 94 10
Receivables 438 48
Cash and cash equivalents 55 6
Provisions -319 -35
Other liabilities -543 -60
Non-controlling interests -10 -1
Fair value of acquired net assets 1,088 120
Effect on cash and cash eqvivalents:
Purchase price settled in cash -3,386 -373
Cash and cash equivalents in acquired operations 55 6
Total effect on Group cash and cash equivalents -3,331 -367

Divestment of the pathology business

On September 30, 2011, Elekta divested its Anatomic Pathology Information System business, marketed under the brand name PowerPath®. The consideration amounted to USD 30.5 M, through an asset deal on a cash and debt-free basis. The buyer was Sunquest Information Systems, Inc., a U.S. based company providing closely related diagnostic IT solutions. During fiscal year 2010/11 the Pathology Information System generated revenues of approximately SEK 80 M and operating result of SEK 19 M with 44 employees in the U.S. The capital gain amounted to SEK 180 M before tax based on current exchange rate.

Other significant events during the period

On May 5, 2011, Elekta strengthened its long term loan financing by entering into a private placement agreement with U.S. institutional investors. The transaction amount was USD 200 million with tenors between seven and twelve years.

On July 8, 2011, Elekta extended its financing through a revolving credit facility of SEK 1,000 M. The tenor is one year with an option to prolong for another year.

On November 8, 2011, Elekta signed a three-year loan agreement of SEK 400 M with AB Svensk Exportkredit, to further strengthen Elekta's funding through diversification and to have a longer maturity profile.

Issue of convertible bonds with preferential rights for Elekta's shareholders Elekta has issued convertible bonds with preferential rights for the company's shareholders. The issue raised approximately SEK 1,894 M for the company, before transaction costs.

Elekta issued the convertible bonds to be able to capture the growth opportunities the company sees both through expansion in emerging markets and through improved market positions in established markets. In addition, Elekta continually evaluates potential acquisition targets.

Strategic review of magnetoencephalography (MEG)

The initial phase of the strategic review of Elekta's MEG operations is completed. Elekta remains strongly committed to the clinical MEG community and when improvements have been fully implemented, strengthened financial performance is assumed.

Significant events after the end of the fiscal year

Changes in Elekta's Executive Management

  • Johan Sedihn has been appointed Chief Operating Officer. Johan is currently Executive Vice President (EVP) Oncology.
  • Bill Yaeger has been appointed EVP Oncology. Bill comes from Oncology Services International where he was CEO.
  • Olof Sandén, EVP and head of region Europe, Africa, Latin America and the Middle East, has decided to leave Elekta. Tomas Puusepp, president and chief executive, will take over his responsibilities on an interim basis.
  • John Lapré, currently VP R&D Brachytherapy, has been appointed EVP Brachytherapy. He will succeed Jos Lamers who has decided to leave Elekta.

These changes will be effective immediately.

Dividend and split

In accordance with the company's dividend policy, the Board proposes a dividend of SEK 5.00 (4.00) per share for 2011/12, corresponding to approximately SEK 473 M and 39 percent of net profit.

The Board intends to propose to the Annual General Meeting to renew the authorization for the Board to repurchase a maximum of 10 percent of the number of shares outstanding in Elekta AB.

The Board also intends to propose to the Annual General Meeting a split of the Elekta share of 4:1. The purpose is to facilitate increased liquidity and turnover in the share.

Outlook for fiscal year 2012/13

For fiscal year 2012/13, net sales is expected to grow by more than 15 percent in local currency, including Nucletron. Operating profit in SEK is expected to grow by more than 17 percent. Currency is estimated to have a positive effect of about SEK 50 M including hedging effects on earnings for fiscal year 2012/13.

Stockholm, June 5, 2012

Tomas Puusepp President and CEO

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

Elekta's year-end report conference call

Elekta will host a telephone conference 10.00-11.00 CET on June 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 917247. Swedish dial-in number: +46 (0)8 5052 0110, UK dial-in number: +44 (0)20 7162 0077, US dial-in number: + 1 334 323 6201.

The telephone conference will also be broadcasted over the Internet (listen only). Please use the link http://webeventservices.reg.meeting-stream.com/64156\_elekta

Financial information

Interim report May – July 2012/13 September 4, 2012 Annual General Meeting 2012 September 4, 2012 Interim report May – October 2012/13 December 4, 2012

For further information, please contact:

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

Stina Thorman, Vice President Corporate Communications, Elekta AB (publ) 08 587 254 37, [email protected]

Johan Andersson Melbi, Investor Relations Manager, 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 June 5, 2012.

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 2010/11 with exceptions related to a limited number of revised standards and interpretations which are effective and applied from the fiscal year 2011/12. The changes have not had any material impact on the financial reports.

In April, 2012, Elekta issued convertible bonds with preferential rights for the company's shareholders. A convertible loan is, in accordance with IFRS, recognized as a compound financial instrument divided into a liability component and an equity component. Upon initial recognition of the convertible bond, the fair value of the liability component is determined based on the present value of the contractually determined stream of cash flows based on a discount rate determined from the market rate of comparable instruments without the conversion option. Subsequent to initial recognition, the liability component is measured based on its amortized cost, using the effective interest method. The carrying value of the liability component gradually approaches the nominal value of the convertible loan. The gradual increase in the liability component is recognized in the income statement as interest expense and the total interest expense of the convertible loan therefore includes the gradual increase in the liability component as well as the cash coupon. The equity component is calculated as the difference between the nominal value of the convertible loan and the initially recognized liability component. The equity component is carried at a fixed value in shareholders' equity. Transaction costs related to the issue of the convertible loan are distributed between the liability and equity component in proportion to the distribution of the issue proceeds. The transaction costs are included in the calculation of amortized cost, using the effective interest method, and are expensed over the term of the convertible loan.

Exchange rates Average rate Closing rate
May - Apr May - Apr Change Apr 30, Apr 30, Change
Country Currency 2011/12 2010/11 2012 2011
Euroland 1 EUR 9.019 9.220 -2% 8.900 8.911 0%
Great Britain 1 GBP 10.514 10.848 -3% 10.943 10.010 9%
Japan 1 JPY 0.084 0.082 2% 0.084 0.074 13%
United States 1 USD 6.604 6.949 -5% 6.721 6.005 12%

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.

SEK M 3 months 3 months 12 months 12 months
Income statement Feb - Apr
2011/12
Feb - Apr
2010/11
May - Apr
2011/12
May - Apr
2010/11
Net sales
Cost of products sold
3,119
-1,601
2,576
-1,332
9,048
-4,831
7,904
-4,237
Gross income 1,518 1,244 4,217 3,667
Selling expenses -299 -243 -1,084 -957
Administrative expenses -195 -189 -754 -749
R&D expenses -161 -140 -604 -552
Exchange rate differences
Operating result before non-recurring items
7
870
79
751
62
1,837
93
1,502
Transaction and restructuring costs -92 -168
Net gain from divested business -3 180
Operating result 775 751 1,849 1,502
Result from participations in associates 3 8 -1 -1
Interest income 10 9 45 26
Interest expenses and similar items
Exchange rate differences
-53
3
-17
-1
-200
15
-58
-5
Income before tax 738 750 1,708 1,464
Income taxes -197 -219 -480 -433
Net income 541 531 1,228 1,031
Net income attributable to:
Parent Company shareholders 544 531 1,227 1,031
Non-controlling interests -3 0 1 0
Earnings per share before dilution, SEK 5.73 5.67 13.04 11.04
Earnings per share after dilution, SEK 5.68 5.61 12.91 10.91
Statement of comprehensive income
Net income 541 531 1,228 1,031
Other comprehensive income:
Revaluation of cash flow hedges
Translation differences from foreign operations
31
6
18
-116
-94
171
62
-322
Hedge of net investment 4 -3 9 -9
Income tax relating to components of
other comprehensive income -10 -5 22 -14
Other comprehensive income for the period 31 -106 108 -283
Comprehensive income for the period 572 425 1,336 748
Comprehensive income attributable to:
Parent Company shareholders 574 424 1,335 748
Non-controlling interests -2 1 1 0
CASH FLOW
SEK M
Operating cash flow
Change in working capital
626
-467
710
-330
1,276
-641
1,180
-340
Cash flow from operating activities 159 380 635 840
Business combinations and investments in associates 1 -4 -3,166 -259
Other investing activities -28 -27 -132 -90
Cash flow from investing activities -27 -31 -3,298 -349
Cash flow after investments 132 349 -2,663 491
Cash flow from financing activities 1,103 -28 3,164 -227
Cash flow for the period 1,235 321 501 264
Exchange rate differences -5 -22 31 -74
Change in cash and cash equivalents for the period 1,230 299 532 190

CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET

2012
2011
Non-current assets
Intangible assets
6,457
2,692
Tangible fixed assets
407
236
Financial assets
147
67
Deferred tax assets
233
206
Total non-current assets
7,244
3,201
Current assets
Inventories
755
540
Accounts receivable
2,692
2,273
Other current receivables
2,649
1,585
Cash and cash equivalents
1,895
1,363
Total current assets
7,991
5,761
Total assets
15,235
8,962
Elekta's owners' equity
4,999
3,832
Non-controlling interests
11
1
Total equity
5,010
3,833
Non-current liabilities
Long-term interest-bearing liabilities
4,417
782
Deferred tax liabilities
675
300
Other long-term liabilities
192
119
Total non-current liabilities
5,284
1,201
Current liabilities
Short-term interest-bearing liabilities
113
99
Accounts payable
842
544
Advances from customers
1,086
1,113
Other current liabilities
2,900
2,172
Total current liabilities
4,941
3,928
Total equity and liabilities
15,235
8,962
Assets pledged
7
3
Contingent liabilities
68
55

CHANGES IN EQUITY

SEK M Apr 30, Apr 30,
2012 2011
Attributable to Elekta's owners
Opening balance 3,832 3,243
Comprehensive income for the period 1,335 748
Incentive programs including deferred tax 6 41
Exercise of warrants 115 180
Option value convertible loan 86
Repurchase of own shares -100
Dividend -376 -280
Total 4,999 3,832
Attributable to non-controlling interests
Opening balance 1 1
Business combination 10
Comprehensive income for the period 1 0
Total 11 1
Closing balance 5,010 3,833
KEY FIGURES 12 months
May - Apr
2006/07
12 months
May - Apr
2007/08
12 months
May - Apr
2008/09
12 months
May - Apr
2009/10
12 months
May - Apr
2010/11
12 months
May -Apr
2011/12
Order bookings, SEK M 5,102 5,882 7,656 8,757 9,061 10,815
Net sales, SEK M 4,525 5,081 6,689 7,392 7,904 9,048
Operating result, SEK M 509 650 830 1,232 1,502 1,849
Operating margin 11% 13% 12% 17% 19% 20%
Profit margin 11% 12% 12% 16% 19% 19%
Shareholders' equity, SEK M 1,863 1,813 2,555 3,244 3,833 5,010
Capital employed, SEK M 2,850 3,262 4,182 4,283 4,714 9,540
Equity/assets ratio 35% 29% 32% 38% 43% 33%
Net debt/equity ratio 0.27 0.58 0.31 -0.04 -0.13 0.53
Return on shareholders' equity 19% 23% 27% 30% 30% 29%
Return on capital employed 20% 24% 24% 30% 35% 28%
DATA PER SHARE 12 months 12 months 12 months 12 months 12 months 12 months
May - Apr May - Apr May - Apr May - Apr May - Apr May -Apr
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
Earnings per share
before dilution, SEK 3.72 4.46 6.00 9.09 11.04 13.04
after dilution, SEK 3.70 4.44 6.00 9.01 10.91 12.91
Cash flow per share
before dilution, SEK -1.14 -3.04 6.30 10.50 5.25 -28.30
after dilution, SEK -1.14 -3.03 6.30 10.41 5.19 -28.02
Shareholders' equity per share
before dilution, SEK 19.96 19.70 27.67 34.95 40.89 52.76
after dilution, SEK 20.46 20.03 27.67 37.50 42.44 53.23
Average number of shares
before dilution, 000s 93,698 92,199 92,029 92,208 93,341 94,108
after dilution, 000s 94,249 92,479 92,029 92,945 94,507 95,031
Number of shares at closing
before dilution, 000s 93,036 91,570 92,125 92,795 93,738 *) 94,748 *)
after dilution, 000s 94,072 92,245 92,125 95,895 95,905 96,071

Dilution 2006/07 – 2007/08 refers to warrants program 2004/2008. Dilution 2009/10 - 2011/12 refers to warrants programs 2007/2012 and 2008/2012 and share program 2009/2012, 2010/2013 and 2011/2014.

*) Number of registered shares at closing exluding treasury shares (502,000 shares).

Data per quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
SEK M 2009/10 2009/10 2009/10 2009/10 2010/11 2010/11 2010/11 2010/11 2011/12 2011/12 2011/12 2011/12
Order bookings 1,658 2,150 1,897 3,052 1,889 2,238 1,914 3,020 1,700 2,702 2,784 3,629
Net sales 1,440 1,691 1,704 2,557 1,627 1,879 1,822 2,576 1,428 1,936 2,565 3,119
Operating profit 89 232 232 679 153 302 296 751 92 385 597 775
Cash flow from
operating activities -138 288 439 467 -30 234 256 380 159 83 234 159
Order bookings growth based
on unchanged exchange rates
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
SEK M 2009/10 2009/10 2009/10 2009/10 2010/11 2010/11 2010/11 2010/11 2011/12 2011/12 2011/12 2011/12
North and South America 8% 5% -11% 14% 0% 9% 79% -14% 9% 8% **) 1% **) 20% **)
Europe, Middle East and Africa 34% 57% 33% -9% 41% -16% -25% 35% -24% 31% **) 34% **) -8% **)
Asia Pacific 14% 6% 57% 0% 16% 42% -5% 25% 38% 6% **) -4% **) 19% **)
Group 19% 22% 20% 3% 19% 7% 7% 9% 2% 14% **) 11% **) 11% **)

**) 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 maker). 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-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%
Non-recurring items 12
Global costs -1,281 14%
Operating result 1,849 20%
Net financial items -141
Income before tax 1,708
May-Apr 2010/11
North and Europe, Africa Asia Pacific Group total % of
SEK M South America and Middle East net sales
Net sales 2,818 2,795 2,291 7,904
Operating expenses -1,864 -1,884 -1,549 -5,297 67%
Contribution margin 954 911 742 2,607 33%
Contribution margin, % 34% 33% 32%
Non-recurring items
Global costs -1,105 14%
Operating result 1,502 19%
Net financial items -38
Income before tax 1,464

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

May - Apr May - Apr
SEK M 2011/12 2010/11
Operating expenses -111 -99
Financial items 711 339
Income after financial items 600 240
Appropriations 0 9
Taxes -4 0
Net income 596 249
Statement of comprehensive income
Net income 596 249
Other comprehensive income 7 -7
Total comprehensive income 603 242
BALANCE SHEET
Apr 30 Apr 30,
SEK M 2012 2011
Non-current assets
Shares in subsidiaries 1,764 1,729
Receivables from subsidaries 2,754
Other financial assets 53 119
Deferred tax assets 15 17
Total non-current assets 4,586 1,865
Current assets
Receivables from subsidaries 2,608 1,023
Other current receivables 113 43
Cash and cash equivalents 1,347 1,006
Total current assets 4,068 2,072
Total assets 8,654 3,937
Shareholders' equity 2,304 1,876
Untaxed reserves 30 30
Non-current liabilities
Long-term interest-bearing liabilities 4,417 781
Long-term liabilities to Group companies 50 36
Long-term provisions 22 22
Total non-current liabilities 4,489 839
Current liabilities
Short-term liabilities to Group companies 1,705 1,155
Accounts payable 12 3
Other current liabilities 114 34
Total current liabilities 1,831 1,192
Total shareholders' equity and liabilities 8,654 3,937
Assets pledged
Contingent liabilities 1,043 804

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