Earnings Release • Sep 21, 2010
Earnings Release
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2010
| Group summary | May - Jul | May - Jul | Change |
|---|---|---|---|
| SEK M | 2010/11 | 2009/10 | |
| Order bookings | 1,889 | 1,658 | 19%* |
| Net sales | 1,627 | 1,440 | 16%* |
| Operating profit | 153 | 89 | 72% |
| Net income | 103 | 56 | 84% |
| Cash flow from operating activities | -30 | -138 | 78% |
| Earnings per share after dilution, SEK | 1.09 | 0.62 | 76% |
* Compared to last fiscal year at unchanged exchange rates.
I am very pleased with Elekta's performance in the first three months of our fiscal year 2010/11. Demand remained strong for Elekta's clinical solutions and services. Order bookings increased by 19 percent in local currency. All regions and product areas showed good performance, with particularly strong growth in Region Europe, Middle East and Africa. Operating profit rose to SEK 153 M (89) mainly due to higher sales volumes.
Elekta's success derives from providing comprehensive and effective clinical solutions and services for the treatment of cancer and brain disease. Our world leading solutions in
image-guided radiation therapy, stereotactic radiosurgery as well as in oncology software, make it possible for oncologists and neurosurgeons to effectively treat tumors, blood vessel deformations and functional illnesses with maximum precision, while sparing healthy tissue. We are committed to improving patient care through innovation and continuous
enhancement of our product portfolio. This is achieved by pursuing clinical research in close cooperation with the foremost universities and hospitals worldwide.
The recent acquisition of Resonant Medical Inc. has added new solutions for image guidance to our product portfolio such as Clarity™ as well as highly skilled R&D resources in oncology imaging. With this acquisition Elekta has strengthened its leadership in motion management, which we regard as a key area in the improvement of advanced cancer treatment. Clarity™ soft tissue visualization, which can be integrated with any linear accelerator platform, was exhibited for the first time by Elekta in Europe at the 2010 meeting of the European Society for Therapeutic Radiology and Oncology (ESTRO) held in September.
The strong development for Elekta Neuroscience has continued in the first quarter with high demand for Leksell Gamma Knife® Perfexion™. We expect advantages of stereotactic radiosurgery in the treatment of brain metastases to receive greater attention worldwide in the coming years. As we are introducing the technology to new customers, the installed base of Leksell Gamma Knife® continues to expand.
There is an increased need for cancer care in the markets where Elekta operates. Growth is particularly strong in emerging markets where Elekta is the market leader. We continue to expand geographically to make cancer care available for more people around the world. Key success factors are our long term customer relations, our innovative capabilities and our commitment to the highest level of service and customer care. We have more than 5,000 hospitals as our customers worldwide and as this number is increasing so does the significance of our services and software businesses.
Elekta's financial outlook for the fiscal year 2010/11 remains unchanged with an increase in net sales by more than 10 percent in local currency, and operating profit increase in SEK of more than 15 percent.
Tomas Puusepp President and CEO
Order bookings rose by 14 percent to SEK 1,889 M (1,658). Based on unchanged exchange rates, order bookings increased 19 percent.
Order backlog on July 31, 2010 was SEK 8,382 M, compared to SEK 8,093 M on April 30, 2010. Order backlog is converted at closing exchange rates, which resulted in a positive translation difference of SEK 27 M.
| Order bookings | May - Jul | May - Jul | Change | 12 months | Change | May-April |
|---|---|---|---|---|---|---|
| SEK M | 2010/11 | 2009/10 | rolling | 2009/10 | ||
| North and South America | 658 | 658 | 0% | 3,415 | 0% | 3,415 |
| Europe, Middle East, Africa | 777 | 615 | 26% | 3,404 | 19% | 3,242 |
| Asia Pacific | 454 | 385 | 18% | 2,169 | 15% | 2,100 |
| Group | 1,889 | 1,658 | 14% | 8,988 | 10% | 8,757 |
Order bookings for region North and South America were unchanged based on fixed currency rates compared to the first quarter of previous year. In the first quarter of 2009/10, Elekta received large orders in Latin America. In the first quarter of 2010/2011, order bookings for North America, increased by 10 percent.
The North American market is primarily driven by rising cancer incidence in an increasing and aging population, an emphasis on early detection, and rapid acceptance of new and refined radiation treatment technology.
In the US, market recovery has been slow following the financial crisis and economic downturn. The healthcare reform in the US will extend healthcare to 32 million more Americans. Elekta and its users are likely to benefit as a greater portion of the U.S. population should be able to better afford and gain access to services that can lead to earlier detection of cancer and treatment.
The South American market is driven by a large unmet demand for treatment of cancer and brain disorders. The Ministry of Health in Brazil recently announced substantial increased reimbursement levels for radiation therapy. This initiative supports the long-term growth in the region. Elekta has successfully increased its presence in the region.
The contribution margin for the region amounted to 34 percent (33).
Order bookings for region Europe including Middle East and Africa rose 41 percent based on unchanged exchange rates compared to previous year. Bookings were particularly strong in Italy, Germany, Russia and France.
Market development in Western Europe is driven primarily by replacements, as well as
national and regional initiatives to solve the shortage of radiotherapy capacity. The majority of the treatment systems are procured through public tenders with relatively long sales processes. Elekta's ability to provide comprehensive and integrated solutions, based on open interfaces, makes the company an attractive partner.
Demand in the region is expected to show a stable development with continued growth. Due to the financial crisis there is an uncertainty concerning certain parts of Europe where the government financed healthcare systems will probably not expand. A growing trend in Western Europe is the emergence of private cancer-care providers that exclusively focus on radiation therapy. These companies will likely achieve a greater role in the financing of the expansion of capital intense equipment, and they are currently found in the UK, Germany, France and Spain. Most have selected equipment from Elekta.
In Eastern Europe, Russia, Middle East and Africa, there is a large unmet need for cancer care and treatment of brain disorders. As in most emerging markets the primary issue is a lack of capacity for early diagnoses, which means that many people do not receive treatment until at a late stage of their disease. These factors are the key drivers of demand, while demand and requirements for advanced cancer care are also growing in pace with rising prosperity.
The contribution margin for the region amounted to 25 percent (30). The decrease was mainly attributable to product mix.
Order bookings in the Asia Pacific region increased by 16 percent, based on unchanged exchange rates, compared to the previous year. Japan and China accounted for the strongest growth. In Japan, order bookings were particularly strong for Elekta Neuroscience.
The Asia Pacific region is generally characterized by major shortage of care capacity in the areas of oncology and neurosurgery, although countries such as Australia, Japan and
Taiwan, as well as Hong Kong and Singapore have well-established healthcare systems. Healthcare investments in this market primarily pertain to establishing new care capacity. Elekta is well positioned to support healthcare providers in their efforts to develop and improve cancer care.
In China in particular, investments will continue to increase as a result of the healthcare reform that was adopted in 2009. China represents the strongest growth market in this
region and Elekta is the market leader in advanced radiation therapy in this market.
The prospects for increased radiation therapy in cancer care in Japan are also favorable. Elekta has a strong presence within neuroscience and software and is well placed to increase its market share in the area of oncology.
Elekta is opening an office in South Korea, after completing the acquisition of the company's successful distribution partnership.
The contribution margin for the region amounted to 28 percent (17).
Net sales rose 13 percent to SEK 1,627 M (1,440). Based on unchanged exchange rates, net sales increased 16 percent.
| Net sales | May - Jul | May - Jul | Change | 12 months | Change | May-April |
|---|---|---|---|---|---|---|
| SEK M | 2010/11 | 2009/10 | rolling | 2009/10 | ||
| North and South America | 713 | 630 | 13% | 2,875 | -2% | 2,792 |
| Europe, Middle East, Africa | 549 | 461 | 19% | 2,823 | 7% | 2,735 |
| Asia Pacific | 365 | 349 | 5% | 1,881 | 21% | 1,865 |
| Group | 1,627 | 1,440 | 13% | 7,579 | 7% | 7,392 |
Operating profit rose 72 percent to SEK 153 M (89), positively impacted by higher sales volume and efficiency improvements.
Gross margin amounted to 45 percent (45). Operating margin increased to 9 percent (6).
Research and development expenditures before capitalization of development rose 1 percent to SEK 150 M (148) equal to 9 percent (10) of net sales.
Costs for Elekta's incentive programs were SEK 10 M (9).
Currency fluctuations negatively affected operating profit compared to the previous year by approximately SEK -5 M.
Exchange rate gains from forward contracts affected operating profit by SEK 20 M (losses 54). Unrealized exchange rate gains from cash flow hedges amounted to SEK 62 M and are reported in shareholders' equity taking into account the tax impact. According to Elekta's currency hedging policy, anticipated sales in foreign currency may be hedged up to 24 months.
Net financial items amounted to an expense of SEK 5 M (expense 6).
Income before tax amounted to SEK 147 M (83). Tax expense amounted to SEK 44 M (27) or 30 percent (32). Net income amounted to SEK 103 M (56).
Earnings per share amounted to SEK 1.11 (0.62) before dilution and SEK 1.09 (0.62) after
dilution.
Return on shareholders' equity amounted to 30 percent (27) and return on capital employed amounted to 32 percent (25).
Capitalization of development costs and amortization of capitalized development costs amounted to net SEK 17 M (7). Capitalization amounted to SEK 32 M (18) and amortization to SEK 15 M (11).
Investments in intangible and tangible fixed assets amounted to SEK 48 M (49). Amortization of intangible and depreciation of tangible fixed assets amounted to SEK 61 M (56).
A seasonal increase in working capital resulted in a negative cash flow from operating
activities of SEK -30 M, a significant improvement from the first quarter of previous year
(-138). Cash flow after investments amounted to SEK -285 M (-164), acquisitions were included with SEK -240 M.
Liquid funds amounted to SEK 904 M compared to SEK 1,174 M on April 30, 2010. Interest bearing liabilities increased to SEK 1,077 M compared to SEK 1,039 M on April 30, 2010. Net debt amounted to SEK -173 M on July 31, 2010 compared to net cash of SEK 135 M on April 30, 2010. Net debt/equity ratio was 0.05 (0.33).
During the period 765,127 new Series B shares were subscribed through exercise of warrants distributed within the framework of the established option programs.
Total number of shares on July 31, 2010 was 93,560,371 divided between 3,562,500 A-shares and 89,997,871 B-shares.
The Board of Directors decided on June 16, 2010 to exercise the mandate given to them by the Annual General Meeting 2009 by authorizing the executive management to initiate the repurchase of shares in an amount of SEK 100 M and not more than 650,000 shares, corresponding to 0.7 percent of the total number of outstanding shares in the company.
Share purchases were made on NASDAQ OMX Stockholm June 16-22, 2010. The number of repurchased shares on July 31, 2010, totaled 502,000 B-shares.
The average number of employees was 2,585 (2,461). The average number of employees in the Parent Company was 21 (23).
The number of employees on July 31, 2010 totaled 2,631 whereof Resonant Medical Inc., had 37 employees. On April 30, 2010, the number of employees in Elekta totaled 2,549.
The weak economic development and high public debt levels may mean less availability of financing for private customers and reduced future health care spending by the governments for some markets. Elekta's ability to deliver treatment equipment is to a large extent dependent on customers' readiness to receive the delivery and 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.
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 2009/10 on page 45 and in note 2.
On May 31, Resonant Medical Inc. (RMI), Montreal, Canada was acquired. The company develops systems for enhanced image guidance for radiation therapy based on latest
generation 3-D ultrasound technology, which is complementary to Elekta's existing leading image guidance technology. The acquisition cost amounted to CAD 30 M. Elekta consolidates RMI from June 1, 2010. Goodwill and identifiable intangible assets amount to
approximately CAD 23 M. The revenue for 2010/11 is expected to be around CAD 10 M. During the period operating result was negative CAD 1 M. Transaction costs related to the acquisition have been expensed when incurred and amount to SEK 5 M. The transaction is forecasted to have a minor dilutive effect on reported earnings per share during fiscal year 2010/11 and be mildly accretive for the following fiscal year.
For the fiscal year 2010/11, Elekta's net sales are expected to grow by more than 10 percent in local currency. Operating profit in SEK is expected to grow by more than 15 percent.
Stockholm September 21, 2010
Tomas Puusepp President and CEO
This report has not been reviewed by the company's auditors.
Financial information
Six-month interim report 2010/11 December 7, 2010
For further information, please contact: Tomas Puusepp, President and CEO, Elekta AB (publ) Tel: +46 8 587 25 520, e-mail: [email protected] Håkan Bergström, CFO, Elekta AB (publ) Tel: +46 8 587 25 547, e-mail: [email protected]
Stina Thorman, Vice President Corporate Communications, Elekta AB (publ) Tel: +46 8 587 25 437, e-mail: [email protected]
Elekta AB (publ) Corporate registration number 556170-4015 Box 7593, SE 103 93 Stockholm, Sweden
This interim report for the Group is prepared 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 2.3. The accounting principles applied correspond to those presented in the Annual Report 2009/10 with exceptions related to revised standards and new interpretations applied from the fiscal year 2010/11. The revised IFRS 3 Business Combinations effective July 1, 2009 will be applied for fiscal year starting from this date. The amendments affect amongst other things how to account for transaction costs, possible contingent considerations and step acquisitions. Other new and revised standards and IFRIC interpretations not yet applied by Elekta May 1, 2010, have been assessed to have no material impact on the financial reports for the first quarter.
| Exchange rates | Average rate | Closing rate | ||||||
|---|---|---|---|---|---|---|---|---|
| May - Jul | May - Jul | Change | Jul 31 | Apr 30, Change | ||||
| Country | Currency | 2010/11 | 2009/10 | 2010 | 2010 | |||
| Euro | 1 EUR | 9.582 | 10.765 | -11% | 9.45 | 9.609 | -2% | |
| Great Britain | 1 GBP | 11.401 | 12.412 | -8% | 11.303 | 11.110 | 2% | |
| Japan | 1 JPY | 0.085 | 0.081 | 5% | 0.084 | 0.077 | 9% | |
| United States | 1 USD | 7.661 | 7.738 | -1% | 7.233 | 7.225 | 0% |
Order bookings and income statement are accounted at average exchange rates for the reporting period while order backlog and balance sheet items are accounted at closing exchange rates.
| SEK M | 3 months May - Jul |
3 months May - Jul |
12 months Aug - Jul |
12 months May - Apr |
|---|---|---|---|---|
| Income statement | 2010/11 | 2009/10 | 2009/10 | 2009/10 |
| Net sales Cost of products sold |
1,627 -902 |
1,440 -798 |
7,579 -4,090 |
7,392 -3,986 |
| Gross income | 725 | 642 | 3,489 | 3,406 |
| Selling expenses | -228 | -248 | -950 | -970 |
| Administrative expenses | -191 | -171 | -728 | -708 |
| R&D expenses | -133 | -131 | -537 | -535 |
| Exchange rate differences | -20 | -3 | 22 | 3 9 |
| Operating result | 153 | 89 | 1,296 | 1,232 |
| Result from participations in associates | 0 | 2 | 0 | 2 |
| Interest income Interest expenses and similar items |
8 - 13 |
3 - 14 |
11 -49 |
6 -50 |
| Exchange rate differences | - 1 | 3 | -2 | 2 |
| Income before tax | 147 | 83 | 1 256 | 1,192 |
| Income taxes | - 44 | - 27 | - 376 | -359 |
| Net income | 103 | 56 | 880 | 833 |
| Net income attributable to: | ||||
| Parent Company shareholders | 103 | 58 | 883 | 838 |
| Non-controlling interests | 0 | - 2 | - 3 | - 5 |
| Earnings per share before dilution, SEK | 1.11 | 0.62 | 9.58 | 9.09 |
| Earnings per share after dilution, SEK | 1.09 | 0.62 | 9.48 | 9.01 |
| Statement of comprehensive income | ||||
| Net income | 103 | 56 | 880 | 833 |
| Other comprehensive income: | ||||
| Cost of incentive programs | 11 | 7 | 23 | 19 |
| Revaluation of cash flow hedges | - 4 | 173 | - 66 | 111 |
| Translation differences from foreign operations Hedge of net investment |
- 9 0 |
- 58 0 |
- 130 5 |
- 179 5 |
| Income tax relating to components of | ||||
| other comprehensive income | 4 | - 48 | 49 | - 3 |
| Other comprehensive income for the period | 2 | 74 | - 119 | - 47 |
| Comprehensive income for the period | 105 | 130 | 761 | 786 |
| Comprehensive income attributable to: | ||||
| Parent Company shareholders | 105 | 132 | 764 | 791 |
| Non-controlling interests | 0 | - 2 | - 3 | - 5 |
| CASH FLOW | ||||
| SEK M | ||||
| Operating cash flow Change in working capital |
65 -95 |
27 -165 |
1,082 82 |
1,044 12 |
| Cash flow from operating activities | -30 | -138 | 1,164 | 1,056 |
| Cash flow from investing activities | -255 | -26 | -317 | -88 |
| Cash flow after investments | -285 | -164 | 847 | 968 |
| Cash flow from financing activities | 14 | -171 | -386 | -571 |
| Cash flow for the period | -271 | -335 | 461 | 397 |
| Exchange rate differences | 1 | -16 | -34 | -51 |
| Change in cash and cash equivalents for the period | -270 | -351 | 427 | 346 |
| SEK M | Jul 31, | Jul 31, | Apr 30, |
|---|---|---|---|
| 2010 | 2009 | 2010 | |
| Intangible assets | 3,033 | 2,977 | 2,880 |
| Tangible fixed assets | 248 | 252 | 247 |
| Financial assets | 81 | 53 | 60 |
| Deferred tax assets | 167 | 30 | 128 |
| Inventories | 646 | 584 | 592 |
| Accounts receivable | 2,105 | 1,765 | 2,223 |
| Other current receivables | 1,253 | 1,415 | 1,211 |
| Cash and cash equivalents | 904 | 477 | 1,174 |
| Total assets | 8,437 | 7,553 | 8,515 |
| Elekta's owners' equity | 3,352 | 2,681 | 3,243 |
| Non-controlling interests | 0 | 4 | 1 |
| Total equity | 3,352 | 2,685 | 3,244 |
| Interest-bearing liabilities | 1,077 | 1,371 | 1,039 |
| Non interest-bearing liabilities | 4,008 | 3,497 | 4,232 |
| Total equity and liabilities | 8,437 | 7,553 | 8,515 |
| Assets pledged | 5 | 1 | 2 |
| Contingent liabilities | 23 | 88 | 28 |
| SEK M | May - Jul 2010/11 |
May - Jul 2009/10 |
May - Apr 2009/10 |
|---|---|---|---|
| Attributable to Elekta's owners | |||
| Opening balance | 3,243 | 2,549 | 2,549 |
| Comprehensive income for the period | 105 | 132 | 791 |
| Exercise of warrants | 104 | – | 87 |
| Repurchase of own shares | -100 | ||
| Dividend | – | – | -184 |
| Total | 3,352 | 2,681 | 3,243 |
| Attributable to non-controlling interests | |||
| Opening balance | 1 | 6 | 6 |
| Comprehensive income for the period | -1 | -2 | -5 |
| Total | 0 | 4 | 1 |
| Closing balance | 3,352 | 2,685 | 3,244 |
| KEY FIGURES | 12 months | 12 months | 12 months | 12 months | 12 months | 3 months | 3 months |
|---|---|---|---|---|---|---|---|
| May - Apr | May - Apr | May - Apr | May - Apr | May - Apr | May - Jul | May - Apr | |
| 2005/06 | 2006/07 | 2007/08 | 2008/09 | 2009/10 | 2009/10 | 2010/11 | |
| Order bookings, SEK M | 4,705 | 5,102 | 5,882 | 7,656 | 8,757 | 1,658 | 1,889 |
| Net sales, SEK M | 4,421 | 4,525 | 5,081 | 6,689 | 7,392 | 1,440 | 1,627 |
| Operating result, SEK M | 453 | 509 | 650 | 830 | 1,232 | 89 | 153 |
| Operating margin | 10% | 11% | 13% | 12% | 17% | 6% | 9% |
| Profit margin | 10% | 11% | 12% | 12% | 16% | 6% | 9% |
| Shareholders' equity, SEK M | 1,868 | 1,863 | 1,813 | 2,555 | 3,244 | 2,685 | 3,352 |
| Capital employed, SEK M | 2,959 | 2,850 | 3,262 | 4,182 | 4,283 | 4,056 | 4,429 |
| Equity/assets ratio | 35% | 35% | 29% | 32% | 38% | 36% | 40% |
| Net debt/equity ratio | 0.06 | 0.27 | 0.58 | 0.31 | -0.04 | 0.33 | 0.05 |
| Return on shareholders' equity | 17% | 19% | 23% | 27% | 30% | 27% | 30% |
| Return on capital employed | 18% | 20% | 24% | 24% | 30% | 25% | 32% |
| DATA PER SHARE | 12 months May - Apr |
12 months May - Apr |
12 months May - Apr |
12 months May - Apr. |
12 months May - Apr |
3 months May - Jul |
3 months May - Apr |
|---|---|---|---|---|---|---|---|
| 2005/06 | 2006/07 | 2007/08 | 2008/09 | 2009/10 | 2009/10 | 2010/11 | |
| Earnings per share | |||||||
| before dilution, SEK | 3.23 | 3.72 | 4.46 | 6.00 | 9.09 | 0.62 | 1.11 |
| after dilution, SEK | 3.21 | 3.70 | 4.44 | 6.00 | 9.01 | 0.62 | 1.09 |
| Cash flow per share | |||||||
| before dilution, SEK | 1.68 | -1.14 | -3.04 | 6.30 | 10.50 | -1.78 | -3.06 |
| after dilution, SEK | 1.67 | -1.14 | -3.03 | 6.30 | 10.41 | -1.78 | -3.02 |
| Shareholders' equity per share | |||||||
| before dilution, SEK | 19.80 | 19.96 | 19.70 | 27.67 | 34.95 | 29.10 | 35.83 |
| after dilution, SEK | 20.45 | 20.46 | 20.03 | 27.67 | 37.50 | 29.10 | 38.17 |
| Average number of shares | |||||||
| before dilution, 000s | 94,136 | 93,698 | 92,199 | 92,029 | 92,208 | 92,125 | 93,026 |
| after dilution, 000s | 94,785 | 94,249 | 92,479 | 92,029 | 92,945 | 92,125 | 94,296 |
| Number of shares at closing | |||||||
| before dilution, 000s | 94,332 | 93,036 | 91,570 | 92,125 | 92,795 | 92,125 | 93,560 |
| after dilution, 000s | 95,703 | 94,072 | 92,245 | 92,125 | 95,895 | 92,125 | 96,481 |
Dilution 2005/06 – 2007/08 refers to warrants program 2004/2008. Dilution 2009/10 refers to warrants programs 2007/2012 and 2008/2012 and share program 2009/2012. All historical data have been restated for split 3:1 October 2005.
| Data per quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2008/09 2008/09 2008/09 2008/09 2009/10 | 2009/10 | 2009/10 | 2009/10 | 2010/11 | ||||
| Order bookings | 1,151 | 1,672 | 1,661 | 3,172 | 1,658 | 2,150 | 1,897 | 3,052 | 1,889 |
| Net sales | 1,025 | 1,467 | 1,664 | 2,533 | 1,440 | 1,691 | 1,704 | 2,557 | 1,627 |
| Operating profit | 13 | 105 | 191 | 521 | 89 | 232 | 232 | 679 | 153 |
| Cash flow from | |||||||||
| operating activities | -163 | 68 | 2 | 833 | -138 | 288 | 439 | 467 | -30 |
Elekta applies geographical segmentation. Order bookings, net sales and contribution margin for respective region are reported to Elekta's CEO and CFO (chief operating decision makers). In the regions' operating expenses are cost of products sold and expenses 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.
| North and | Europe, Africa | Asia Pacific | Total | % of | |
|---|---|---|---|---|---|
| SEK M | South America | and Middle East | net sales | ||
| Net sales | 713 | 549 | 365 | 1,627 | |
| Operating expenses | -468 | -410 | -265 | -1,142 | 70% |
| Contribution margin | 245 | 139 | 101 | 485 | 30% |
| Global costs | -332 | 20% | |||
| Operating result | 153 | 9% | |||
| Contribution margin | 34% | 25% | 28% |
| North and | Europe, Africa | Asia Pacific | Total | % of | |
|---|---|---|---|---|---|
| SEK M | South America | and Middle East | net sales | ||
| Net sales | 630 | 461 | 349 | 1,440 | |
| Operating expenses | -420 | -325 | -290 | -1,035 | 72% |
| Contribution margin | 210 | 136 | 59 | 405 | 28% |
| Global costs | -316 | 22% | |||
| Operating result | 89 | 6% | |||
| Contribution margin | 33% | 30% | 17% |
| North and | Europe, Africa | Asia Pacific | Total | % of | |
|---|---|---|---|---|---|
| SEK M | South America | and Middle East | net sales | ||
| Net sales | 2,792 | 2,735 | 1,865 | 7,392 | |
| Operating expenses | -1,804 | -1,775 | -1,345 | -4,925 | 67% |
| Contribution margin | 988 | 960 | 520 | 2,467 | 33% |
| Global costs | -1,235 | 17% | |||
| Operating result | 1,232 | 17% | |||
| Contribution margin | 35% | 35% | 28% |
| North and | Europe, Africa | Asia Pacific | Total | % of | |
|---|---|---|---|---|---|
| SEK M | South America | and Middle East | net sales | ||
| Net sales | 2,875 | 2,823 | 1,881 | 7,579 | |
| Operating expenses | -1,852 | -1,860 | -1,320 | -5,032 | 66% |
| Contribution margin | 1,023 | 963 | 561 | 2,547 | 34% |
| Global costs | -1,251 | 17% | |||
| Operating result | 1,296 | 17% | |||
| Contribution margin | 36% | 34% | 30% |
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.
| May - Jul | May - Jul | |
|---|---|---|
| SEK M | 2010/11 | 2009/10 |
| Operating expenses | -33 | -20 |
| Financial items | -5 | -1 |
| Income after financial items | -38 | -21 |
| Taxes | 10 | 6 |
| Net income | -28 | -15 |
| July 31, | April 30, | |
|---|---|---|
| SEK M | 2010 | 2010 |
| Financial fixed assets | 1,780 | 1,547 |
| Current assets | 1,570 | 1,962 |
| Total assets | 3,350 | 3,509 |
| Shareholders' equity | 1,800 | 1,834 |
| Untaxed reserve | 39 | 39 |
| Long-term liabilities | 956 | 953 |
| Short-term liabilities | 555 | 683 |
| Total shareholders' equity and liabilities | 3,350 | 3,509 |
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