Elekta

Quarterly Report • Aug 28, 2014

Interim report May – July 2014/15

• Order bookings increased 12* percent to SEK 2,341 M (2,027).
• Net sales decreased 4* percent to SEK 1,865 M (1,912).
• EBITA amounted to SEK -38 M (148) before non-recurring items. Currency effects were neutral.
• Net income amounted to SEK -137 M (-8). Earnings per share amounted to SEK -0.36 (-0.01) before dilution and SEK -0.36 (-0.01) after dilution.
• Cash flow after continuous investments amounted to SEK -670 M (-584). Cash conversion is targeted to return to around 70 percent for the fiscal year.

Outlook

• There are strong drivers for growth in radiation therapy. Elekta's ambition is to continue to grow faster than the market. The financial objective is an annual net sales growth exceeding 10 percent in local currency.
• Due to temporary lower growth and higher execution risks in some emerging markets and a focus on tighter management of working capital, net sales is expected to grow by 7-9 percent in local currency for the fiscal year 2014/15. Currently 2014/15 is expected to finish in the lower range of the interval.
• EBITA is expected to grow by approximately 10 percent (changed from "10 percent or more") in local currency for the fiscal year 2014/15, compared with last year. Exchange rate movements are expected to have a neutral impact on EBITA growth in SEK.

Group summary	3 months	3 months
	May - Jul	May - Jul	Change
SEK M	2014/15	2013/14
Order bookings	2,341	2,027	12%*
Net sales	1,865	1,912	-4%*
EBITA before non-recurring items	-38	148
Operating result	-122	46
Net income	-137	-8
Cash flow after continuous investments	-670	-584
Earnings per share after dilution, SEK	-0.36	-0.01

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

This report includes forward-looking statements including, but not limited to, statements relating to operational and financial performance, market conditions, and other similar matters. These forward-looking statements are based on current expectations about future events. Although the expectations described in these statements are assumed to be reasonable, there is no guarantee that such forward-looking statements will materialize or are accurate. Since these statements involve assumptions and estimates that are subject to risks and uncertainties, results could differ materially from those set out in the statement. Some of these risks and uncertainties are described further in the section "Risks and uncertainties". Elekta undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law or stock exchange regulations.

President and CEO comments

During the first quarter of the fiscal year 2014/15 we continued to see mixed development in our markets. We are pleased that order momentum recovered and order bookings grew by 12* percent compared to the first quarter last year. Net sales and cash flow were weak. Based on current market conditions and our order backlog we reiterate our net sales guidance for the year with a growth of 7-9 percent in local currency, but we currently expect the result to be in the lower range of the interval. EBITA is expected to grow approximately 10 percent.

Mixed market environment

We estimate that demand in the first quarter grew by low single-digits over the previous year. In the first quarter we saw a mixed market environment across our geographic areas. There was slower than expected growth in mature markets, especially in the US. In Asia, and other emerging markets, the market development was mixed in the first quarter but we are expecting a return to growth for the full year. Due to macroeconomic and geopolitical circumstances there are increased risks in the full year plan. We remain cautiously optimistic, but are monitoring the situation closely.

Strong order bookings

Elekta's order bookings increased by 12* percent in the first quarter, reflecting good demand for Elekta's leading portfolio of cancer care solutions. Performance was good in Europe and North America. In Asia, the trend was mixed. India showed good growth. In Japan, orders were unchanged while the market and orders in China were seasonally lower than last year but full-year prospects are good.

After the relatively weak order intake last year, our global order volumes for Leksell Gamma Knife® continue to improve according to plan.

Weak delivery volumes

The first quarter is normally Elekta's weakest. Net sales decreased by 4* percent. Deliveries in region EMEA were strong and we noticed a slight increase in Asia. North America had a weak quarter mainly due to delays in planned software installations. Software revenues are expected to recover during this fiscal year. Gross margin decreased to 34 percent (42). The decline is due to low software revenues and unfavorable project mix effects in the first quarter. EBITA before non-recurring items amounted to SEK -38 M (148). The lower result is an effect of the lower gross profit combined with cost increases according to plan.

Cash flow

Cash flow after continuous investments for the first quarter amounted to SEK -670 M (-584). Cash flow was impacted by the result from operations and inventory build-up for scheduled deliveries for the quarter and the remainder of the year. Compared with the fourth quarter, accounts receivable declined according to plan. Actions are in place to gradually improve cash flow during the year, with the ambition to return to a cash generation of around 70 percent for the year.

Supporting future growth

In the fourth quarter, and in line with the strategic agenda, we announced measures to enhance the efficiency of the organization to support continued growth. The activities in the program have, to a large extent, been executed and the related cash outflow amounted to SEK 33 M in the first quarter. The total program amounted to SEK 100 M. We have completed efficiency measures leading to staff reductions in our North American and Asian regional organizations. In addition, we announced our intent to close our office in Freiburg, Germany, and transfer the functions to Crawley, UK.

Continued progress in product development

We are in a high-investment phase within research and development. Our MRI-guided radiation therapy project is our largest research and development project to date. Recently, the Christie Hospital in the UK joined our research consortium for MRI-guided radiation therapy and Uppsala University Hospital has announced that it will be conducting research with MRI-guided radiation therapy via a bilateral research agreement with Elekta.

Outlook

The long-term underlying market growth remains strong. However, for this fiscal year, we see continued mixed development in our markets including higher execution risks in certain emerging markets. We reiterate our outlook for the full fiscal year of a net sales growth of 7-9 percent, in local currency, where we currently see 2014/15 finishing in the lower range of the interval.

EBITA is expected to increase approximately 10 percent in local currency compared with last year. Exchange rate movements are expected to have a neutral impact on EBITA growth in SEK.

Niklas Savander - President and CEO

* Compared with last fiscal year, based on unchanged exchange rates.

Presented amounts refer to the fiscal year 2014/15 and amounts within parentheses indicate comparative values for the equivalent period last fiscal year unless otherwise stated.

Order bookings and order backlog

Order bookings increased 15 percent to SEK 2,341 M (2,027) and 12 percent based on constant exchange rates.

Order backlog was SEK 14,630 M, compared to SEK 13,609 M on April 30, 2014. Order backlog is converted at closing exchange rates. The translation of the backlog at exchange rates on July 31, 2014 compared to exchange rates on April 30, 2014 resulted in a positive translation difference of SEK 545 M.

Order bookings	3 months	3 months			12 months		12 months
	May - Jul	May - Jul	Change	Change *	rolling	Change	May - Apr
SEK M	2014/15	2013/14			2013/14		2013/14
North and South America	699	623	12%	11%	4,567	9%	4,491
Europe, Middle East and Africa	983	712	38%	31%	4,891	23%	4,620
Asia Pacific	659	692	-5%	-5%	3,109	-17%	3,142
Group	2,341	2,027	15%	12%	12,567	6%	12,253

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

Regional development

North and South America

Order bookings increased by 11 percent in the first quarter based on constant exchange rates. Volumes of Leksell Gamma Knife® continued to recover according to plan. For the fourth year in a row, Elekta's Leksell Gamma Knife® PerfexionTM earned Best in KLAS for Radiation Therapy 2014.

The market in North America is assumed to have been flat or grown with low single digits during the first quarter. Elekta's software revenues were low in the first quarter, mainly due to delays in planned installations.

Hospital consolidation continued and is driving the market toward more comprehensive solutions. Elekta's oncology treatment and management solutions support the demand for greater focus on clinical efficiency and productivity across large integrated health care systems.

Elekta's performance in Latin America improved in the first quarter with growth in order bookings.

Elekta's contribution margin in the region amounted to 19 percent (34) in the first quarter. The decline is mainly related to low software revenues due to delays in planned installations.

Europe, Middle East and Africa

Order bookings rose 31 percent in the first quarter based on constant exchange rates.

Elekta's performance in the region was good with double-digit growth in order bookings across all territories. The growing demand for advanced cancer care in established markets is driving the need to upgrade existing systems as well as the need for additional capacity. The underlying market growth in established markets in Europe has been slower than historic levels.

The structural expansion of radiation therapy is taking place in emerging markets. This is in line with the significant need for build out of cancer care treatment capacity. The overall market development is good but, the geopolitical risk in certain emerging markets has increased. This is specifically related to Iraq and to some extent Russia and Ukraine. To strengthen its position in Turkey, Elekta has acquired the distributor Mesi Medikal and has announced the intention to acquire its Polish distributor RTA as well.

Elekta's contribution margin in the region amounted to 27 percent (28) in the first quarter.

Asia Pacific

Order bookings in the Asia-Pacific region declined 5 percent based on constant exchange rates. Elekta's development in the region was mixed. India recovered according to plan and showed favorable growth during the first quarter. The market and orders in China were seasonally lower than last year, but full-year prospects are good.

Demand in Japan primarily comprises replacement investments. Order bookings remained largely unchanged. The long-term outlook for an increased proportion of radiation therapy in cancer care is regarded as favorable. Japanese regulatory authorities approved Versa HDTM's entry to this important market.

Elekta's contribution margin in the region amounted to 14 percent (21) in the first quarter. The decline is mainly related to unfavorable project mix effects in the first quarter.

Net sales	3 months	3 months			12 months		12 months
	May - Jul	May - Jul	Change Change *		rolling	Change	May - Apr
SEK M	2014/15	2013/14					2013/14
North and South America	648	770	-16%	-17%	3,206	-11%	3,328
Europe, Middle East and Africa	657	582	13%	9%	4,295	17%	4,220
Asia Pacific	560	560	0%	1%	3,146	-5%	3,146
Group	1,865	1,912	-2%	-4%	10,647	1%	10,694

Net sales and earnings

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

Net sales decreased 2 percent to SEK 1,865 M (1,912) and 4 percent based on constant exchange rates. Net sales in region North and South America decreased by 17 percent based on constant exchange rates.

Gross margin was 34 percent (42). The decline is due to low software revenues and unfavorable project mix effects in the first quarter.

Research and development expenditures, before capitalization of development costs, increased according to plan and amounted to SEK 349 M (286), equal to 19 percent (15) of net sales. Capitalization and amortization of development costs in the R&D function amounted to a net of SEK 99 M (66). Selling and administrative expenses amounted to SEK 513 M (488) corresponding to 28 percent (26) of net sales.

The EBITA effect from changes in exchange rates was neutral including hedges.

EBITA before non-recurring items amounted to SEK -38 M (148). Operating result before non-recurring items was SEK -120 M (80). Operating margin before non-recurring items amounted to -6 percent (4). The lower result is an effect of the lower gross profit combined with cost increases according to plan.

Net financial items amounted to SEK -54 M (-57). The financial net was affected by participations in associates amounting to SEK 0 M (-3).

Profit before tax amounted to SEK -176 M (-11). Tax amounted to SEK 39 M (3). Net income amounted to SEK -137 M (-8). Earnings per share amounted to SEK -0.36 (-0.01) before dilution and SEK -0.36 (-0.01) after dilution. Return on shareholders' equity amounted to 18 percent (26) and return on capital employed amounted to 15 percent (21).

Investments and depreciation

Continuous investments amounted to SEK 192 M (193) whereof investments in intangible assets amounted to SEK 144 M (98). The increase in investments in intangible assets relates to the R&D function. Amortization of intangible assets and depreciation of tangible fixed assets amounted to a total of SEK 115 M (96). Capitalization and amortization of development costs are presented in the table below.

Capitalized development costs			3 months 3 months 12 months 12 months
	May - Jul	May - Jul	rolling	May - Apr
SEK M	2014/15	2013/14	2013/14	2013/14
Capitalization of development costs	144	97	536	489
of which R&D	144	97	531	484
Amortization of capitalized development costs	-51	-37	-186	-172
of which R&D	-45	-31	-163	-149
Capitalized development costs, net	93	60	350	317
of which R&D	99	66	368	335

Cash flow

Cash flow after continuous investments amounted to SEK -670 M (-584). The cash flow was negatively affected by an operating cash flow of SEK -157 M (-58). The cash flow effect from the increase in working capital was SEK -321 M (-333), including inventory build-up for scheduled deliveries for the quarter and the remainder of the year with a cash flow effect of -136 (-157). Payments related to the ongoing restructuring program affected the cash flow in the quarter by SEK -33. Actions are in place in order to gradually improve cash flow during the year, with the ambition to return to a cash conversion of around 70 percent for the year.

Cash flow (extract)	3 months		3 months 12 months 12 months
	May - Jul	May - Jul	rolling	May - Apr
SEK M	2014/15	2013/14	2013/14	2013/14
Operating cash flow	-157	-58	1,593	1,692
Change in working capital	-321	-333	-405	-417
Cash flow from operating activities	-478	-391	1,188	1,275
Continuous investments	-192	-193	-780	-781
Cashflow after continuous investments	-670	-584	408	494
Cash conversion*	―	―	28%	32%

* Cash conversion is calculated as cash flow after continuous investments divided by net income adjusted by depreciation and amortization.

Financial position

Cash and cash equivalents amounted to SEK 1,595 M (2,247 on April 30, 2014) and interest-bearing liabilities amounted to SEK 4,600 M (4,486 on April 30, 2014). Thus, net debt amounted to SEK 3,005 M (2,239 on April 30, 2014). Net debt/equity ratio was 0.47 (0.36 on April 30, 2014).

The balance sheet has been significantly affected by changes in exchange rates in the quarter. The exchange rate effect from the translation of cash and cash equivalents amounted to SEK 66 M (-17). The translation difference in long-term interest-bearing liabilities amounted to SEK 102 M (3). Shareholder's equity was affected by exchange rate differences amounting to SEK 246 M (10).

The change in unrealized exchange rate effects from cash flow hedges amounted to SEK -10 M (-35) and is reported in other comprehensive income. Closing balance of unrealized exchange rate effects from cash flow hedges amounts to SEK 55 M (33) exclusive of tax.

Restructuring program

The restructuring program which was launched at the end of last year is progressing according to plan. Expenses incurred and charged to the restructuring provision amounted to SEK 33 M in the quarter.

Working capital

Net working capital amounted to SEK 1,807 M (1,449 on April 30, 2014) corresponding to 17 (14) percent of net sales. The year-to-date working capital net increase of SEK 358 M is related to an increase in inventory of SEK 202 M due to inventory build-up for scheduled deliveries for the quarter and the remainder of the year, a decrease in operating receivables of -323 and a decrease in operating liabilities of SEK 479 M. Currency movements have contributed to the increase in net working capital by some SEK 50 M.

Working capital	Jul 31,	Jul 31,	Apr 30,
SEK M	2014	2013	2014
Working capital assets
Inventories	1,280	1,000	1,078
Accounts receivable	3,580	2,908	4,197
Accrued income	1,801	1,877	1,699
Other operating receivables	758	619	566
Sum working capital assets	7,419	6,404	7,540
Working capital liabilities
Accounts payable	939	921	1,295
Advances from customers	1,676	1,336	1,686
Prepaid income	1,269	1,063	1,200
Accrued expenses	1,405	1,342	1,526
Other operating liabilities	323	253	384
Sum working capital liabilities	5,612	4,915	6,091
Net working capital	1,807	1,489	1,449
% of 12 months rolling net sales	17%	14%	14%

Significant events during the period

Acquisition of Mesi Medikal A.S.

On July 24, 2014, Elekta acquired 100 percent of the shares in Mesi Medikal A.S., a leading distributor of radiation oncology solutions in Turkey. The acquisition significantly strengthens Elekta's market position in a country with a shortage of radiotherapy devices and software and a growing incidence of cancer. The acquisition of Mesi Medikal is expected to add approximately 0.3 percent to Elekta's revenues on an annual basis. The transaction is expected to be EPS accretive on an annual basis. Transaction costs amount to SEK -2 M and are reported as non-recurring items.

Employees

The average number of employees was 3,655 (3,489). The increase is mainly related to the expansion of product development. The average number of employees in the Parent Company was 32 (25). The number of employees on July 31, 2014 totaled 3,750 (3,573).

Shares

During the period 79 new B-shares were subscribed through conversion of convertibles. Total number of registered shares on July 31, 2014 was 382,828,663 divided between 14,250,000 A-shares and 368,578,663 B-shares. Fully diluted shares amount to 402,237,380. The effect is related to the Elekta 2012/17 convertible bond.

Outlook

There are strong drivers for growth in radiation therapy. Elekta's ambition is to continue to grow faster than the market. The financial objective is an annual net sales growth exceeding 10 percent in local currency.

Due to temporary lower growth and higher execution risks in some emerging markets and a focus on tighter management of working capital, net sales is expected to grow by 7-9 percent in local currency for the fiscal year 2014/15. Currently 2014/15 is expected to finish in the lower range of the interval.

EBITA is expected to grow by approximately 10 percent (changed from "10 percent or more") in local currency for the fiscal year 2014/15, compared with last year. Exchange rate movements are expected to have a neutral impact on EBITA growth in SEK.

Risks and uncertainties

Elekta's presence in a large number of geographical markets exposes the Group to political and economic risks on a global scale and/or in individual countries.

The competitive landscape for Elekta is continuously changing. The medical equipment industry is characterized by technological developments and continuous improvements of industrial know-how, resulting in companies launching new products and improved methods for treatment. Elekta strives to be the leader in innovation and offer the most competitive product portfolio, developed in close collaboration with key research leaders in the field. To secure the proceeds of research investments, it is of importance that such new products and technology are protected from the risk of improper use by competitors. When possible and deemed appropriate, Elekta protects its intellectual property rights by way of patents, copyrights and trademark registrations.

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

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

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

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

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

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

In its operations, Elekta is subject to a number of financial risks primarily related to exchange rate fluctuations. In the short-term, the effect of currency movements is reduced through forward contracts. Hedging is conducted on the basis of expected net sales over a period of up to 24 months. The scope of the hedging is determined by the Company's assessment of currency risks. Risk exposure is regulated through a financial policy established by the Board of Directors. Overall responsibility for handling the Group's financial risks, and developing methods and guidelines for dealing with financial risks, rests with executive management and the finance function. For more detailed information regarding these risks, please see Note 2 in the annual report 2013/14.

Stockholm, August 28, 2014

Niklas Savander President and CEO

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

Conference call

Elekta will host a telephone conference at 13:45 – 14:30 CET on August 28, with President and CEO Niklas Savander and CFO Håkan Bergström.

To take part in the conference call, please dial in about 5-10 minutes in advance.

Swedish dial-in number: +46 (0)8 519 993 50, UK dial-in number: +44 (0)20 319 405 47, US dial-in number: +1 877 788 90 23.

The telephone conference will also be broadcasted over the internet (listen only). Please use the link:

http://event.onlineseminarsolutions.com/r.htm?e=835942&s=1&k=EAA8B50F1C78794463BD4A565734355A

Financial information

Interim report May – October 2014/15 November 27, 2014 Interim report May – January 2014/15 March 4, 2015 Year-end report May – April 2014/15 June 2, 2015

For further information, please contact:

Håkan Bergström, CFO, Elekta AB (publ) +46 8 587 25 547, hakan.bergstrom@elekta.com

Johan Andersson, Director Investor Relations, Elekta AB (publ) +46 702 100 451, johan.andersson@elekta.com

Elekta AB (publ)

Corporate registration number 556170-4015 Kungstensgatan 18, 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 13:00 CET on August 28, 2014.

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 Note 1 of the Annual Report 2013/14.

Country	Currency		Average rate			Closing rate
		May - Jul	May - Jul	Change	Jul 31,	Apr 30,	Change
		2014/15	2013/14		2014	2014
Euroland	1 EUR	9.118	8.640	6%	9.219	9.067	2%
Great Britain	1 GBP	11.342	10.115	12%	11.622	11.043	5%
Japan	1 JPY	0.066	0.067	-1%	0.067	0.064	5%
United States	1 USD	6.691	6.605	1%	6.884	6.569	5%

Exchange rates

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

CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

SEK M	3 months	3 months	12 months	12 months
	May - Jul	May - Jul	rolling	May - Apr
INCOME STATEMENT	2014/15	2013/14	2013/14	2013/14
Net sales	1,865	1,912	10,647	10,694
Cost of products sold	-1,232	-1,106	-6,173	-6,047
Gross income	633	806	4,474	4,647
Selling expenses	-287	-258	-1,085	-1,056
Administrative expenses	-226	-230	-914	-918
R&D expenses	-250	-220	-896	-866
Exchange rate differences	10	-18	109	81
Operating result before non-recurring items	-120	8 0	1,688	1,888
Transaction and restructuring costs	- 2	―	-102	-100
Other non-recurring items	―	-34	-27	-61
Operating result	-122	4 6	1,559	1,727
Result from participations in associates	0	- 3	-12	-15
Interest income	8	5	26	23
Interest expenses and similar items	-63	-56	-238	-231
Exchange rate differences	1	- 3	2	- 2
Profit before tax	-176	-11	1,337	1,502
Income taxes	39	3	-314	-350
Net income	-137	- 8	1,023	1,152
Net income attributable to:
Parent Company shareholders	-137	- 6	1,017	1,148
Non-controlling interests	0	- 2	6	4
Earnings per share before dilution, SEK	-0.36	-0.01	2.66	3.01
Earnings per share after dilution, SEK	-0.36	-0.01	2.65	3.00
STATEMENT OF COMPREHENSIVE INCOME
Net income	-137	- 8	1,023	1,152
Other comprehensive income:
Items that will not be reclassified to the income statement
Remeasurements of defined benefit pension plans	―	―	- 3	- 3
Tax	―	―	1	1
Total items that will not be reclassified to the income statement	―	―	- 2	- 2
Items that subsequently may be reclassified to the income statement
Revaluation of cash flow hedges	-10	-35	16	- 9
Translation differences from foreign operations	246	10	596	360
Tax	1	8	- 8	- 1
Total items that subsequently may be reclassified to the income statement	237	-17	604	350
Other comprehensive income for the period	237	-17	602	348
Comprehensive income for the period	100	-25	1,625	1,500
Comprehensive income attributable to:
Parent Company shareholders	99	-22	1,619	1,498
Non-controlling interests	1	- 3	6	2
RESULT OVERVIEW	3 months	3 months	12 months	12 months
	May - Jul	May - Jul	rolling	May - Apr
SEK M	2014/15	2013/14	2013/14	2013/14
Operating result/EBIT before non-recurring items Amortization:	-120	80	1,688	1,888
capitalized development costs acquisitions	51 31	37 31	186 123	172 123
EBITA before non-recurring items	-38	148	1,997	2,183
Depreciation	33	28	123	118
EBITDA before non-recurring items	- 5	176	2,120	2,301

CONSOLIDATED BALANCE SHEET

SEK M	Jul 31,	Jul 31,	Apr 30,
	2014	2013	2014
Non-current assets
Intangible assets	7,160	6,498	6,845
Tangible fixed assets	661	492	624
Financial assets	385	329	359
Deferred tax assets	177	92	143
Total non-current assets	8,383	7,411	7,971
Current assets
Inventories	1,280	1,000	1,078
Accounts receivable	3,580	2,908	4,197
Accrued income	1,801	1,877	1,699
Current tax assets	37	26	31
Derivative financial instruments	103	74	103
Other current receivables	758	619	566
Cash and cash equivalents	1,595	1,826	2,247
Total current assets	9,154	8,330	9,921
Total assets	17,537	15,741	17,892
Elekta's owners' equity	6,349	5,525	6,249
Non-controlling interests	8	10	8
Total equity	6,357	5,535	6,257
Non-current liabilities
Long-term interest-bearing liabilities	4,468	4,346	4,361
Deferred tax liabilities	707	587	687
Other long-term liabilities	167	145	139
Total non-current liabilities	5,342	5,078	5,187
Current liabilities
Short-term interest-bearing liabilities	132	113	125
Accounts payable	939	921	1,295
Advances from customers	1,676	1,336	1,686
Prepaid income	1,269	1,063	1,200
Accrued expenses	1,405	1,342	1,526
Current tax liabilities	65	39	219
Derivative financial instruments	29	61	13
Other current liabilities	323	253	384
Total current liabilities	5,838	5,128	6,448
Total equity and liabilities	17,537	15,741	17,892
Assets pledged	10	4	9
Contingent liabilities	47	138	55

CASH FLOW	3 months		3 months 12 months 12 months
	May - Jul	May - Jul	rolling	May - Apr
SEK M	2014/15	2013/14	2013/14	2013/14
Profit before tax	-176	-11	1,337	1,502
Amortization & Depreciation	115	96	433	414
Interest net	45	44	181	180
Other non-cash items	42	46	107	111
Interest received and paid	-35	-39	-158	-162
Income taxes paid	-148	-194	-307	-353
Operating cash flow	-157	-58	1,593	1,692
Increase (-)/decrease (+) in inventories	-136	-157	-168	-189
Increase (-)/decrease (+) in operating receivables	551	88	-380	-843
Increase (-)/decrease (+) in operating liabilities	-736	-264	143	615
Change in working capital	-321	-333	-405	-417
Cash flow from operating activities	-478	-391	1,188	1,275
Investments intangible assets	-144	-98	-538	-492
Investments other assets	-48	-95	-242	-289
Continuous investments	-192	-193	-780	-781
Cash flow after continuous investments	-670	-584	408	494
Business combinations and investments in associates	-47	0	-43	4
Cash flow after investments	-717	-585	366	498
Cash flow from financing activities	-1	-133	-756	-888
Cash flow for the period	-718	-718	-390	-390
Exchange rate differences	66	-17	153	70
Change in cash and cash equivalents for the period	-652	-735	-237	-320

CHANGES IN EQUITY	3 months	3 months	12 months
	May - Jul	May - Jul	May - Apr
SEK M	2014/15	2013/14	2013/14
Attributable to Elekta's owners
Opening balance	6,249	5,547	5,547
Comprehensive income for the period	99	-22	1,498
Conversion of convertible loan	0	0	0
Acquisition of non-controlling interest	―	―	-33
Dividend	―	―	-763
Total	6,349	5,525	6,249
Attributable to non-controlling interests
Opening balance	8	13	13
Comprehensive income for the period	1	- 3	2
Acquisition of non-controlling interest	―	―	0
Dividend	―	―	- 7
Total	8	10	8
Closing balance	6,357	5,535	6,257

Financial instruments

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

	Jul 31, 2014		Jul 31, 2013		Apr 30, 2014
	Carrying		Carrying		Carrying
SEK M	amount	Fair value	amount	Fair value	amount	Fair value
Long-term interest-bearing liabilities	4,468	4,732	4,346	4,489	4,361	4,614

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

• Level 1: Quoted prices on an active market for identical assets or liabilities
• Level 2: Other observable data than quoted prices included in Level 1, either directly (that is, price quotations) or indirectly (that is, obtained from price quotations)
• Level 3: Data not based on observable market data

Currently Elekta has no financial assets or liabilities in level 1 and 3. Thus, all items presented in the table below relate to level 2 in the fair value hierarchy.

Financial instruments measured at fair value
	Jul 31,	Jul 31,	Apr 30,
SEK M	2014	2013	2014
FINANCIAL ASSETS
Financial assets measured at fair value through profit or loss:
Derivative financial instruments – non-hedging	30	5	40
Derivatives used for hedging purposes:
Derivative financial instruments – hedging	80	73	67
Total financial assets	110	78	107
FINANCIAL LIABILITIES
Financial liabilities at fair value through profit or loss:
Derivative financial instruments – non-hedging	13	23	9
Derivatives used for hedging purposes:
Derivative financial instruments – hedging	25	40	5
Total financial liabilities	38	63	14

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 - Jul
	2009/10	2010/11	2011/12	2012/13	2013/14	2013/14	2014/15
Order bookings, SEK M	8,757	9,061	10,815	12,117	12,253	2,027	2,341
Net sales, SEK M	7,392	7,904	9,048	10,339	10,694	1,912	1,865
Operating result, SEK M Operating margin before non	1,232	1,502	1,849	2,012	1,727	46	-122
recurring items, % Operating margin, %	17 17	19 19	20 20	20 19	18 16	4 2	- 6 - 7
Profit margin, % Shareholders' equity, SEK M Capital employed, SEK M	16 3,244 4,283	19 3,833 4,714	19 5,010 9,540	17 5,560 10,112	14 6,257 10,743	- 1 5,535 9,994	- 9 6,357 10,957
Equity/assets ratio, %	38	43	33	34	35	35	36
Net debt/equity ratio	-0.04	-0.13	0.53	0.36	0.36	0.48	0.47
Return on shareholders' equity, %	30	30	29	27	21	26	18
Return on capital employed, %	30	35	28	21	17	21	15

DATA PER SHARE	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 - Jul
	2009/10	2010/11	2011/12	2012/13	2013/14	2013/14	2014/15
Earnings per share
before dilution, SEK	2.27	2.76	3.26	3.52	3.01	-0.01	-0.36
after dilution, SEK	2.25	2.73	3.23	3.52	3.00	-0.01	-0.36
Cash flow per share
before dilution, SEK	2.63	1.31	-7.07	3.17	1.31	-1.53	-1.88
after dilution, SEK	2.60	1.30	-7.01	3.17	1.24	-1.46	-1.88
Shareholders' equity per share
before dilution, SEK	8.74	10.22	13.19	14.55	16.39	14.49	16.58
after dilution, SEK	9.38	10.61	13.31	14.55	20.32	18.51	16.58
Average number of shares
before dilution, 000s	368,832	373,364	376,431	380,672	381,277	381,270	381,287
after dilution, 000s	371,780	378,028	380,125	380,672	400,686	400,683	381,287
Number of shares at closing
before dilution, 000s	371,181	374,951 *)	378,991 *)	381,270 *)	381,287 *)	381,270 *)	381,287 *)
after dilution, 000s	383,580	383,618	384,284	381,270	400,696	400,683	381,287

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 excluding treasury shares (1,541,368 per July 31, 2014).

Data per quarter	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK M	2012/13	2012/13	2012/13	2012/13	2013/14	2013/14			2013/14 2013/14 2014/15
Order bookings	2,252	2,972	2,856	4,037	2,027	3,101	3,224	3,901	2,341
Net sales	1,695	2,485	2,428	3,731	1,912	2,443	2,385	3,954	1,865
EBITA before non-recurring items	131	468	453	1,244	148	407	340	1,288	-38
Operating result	63	400	386	1,163	46	304	260	1,117	-122
Cash flow from
operating activities	-88	525	258	1,175	-391	282	153	1,231	-478
Order bookings growth based on
unchanged exchange rates	Q1 *)	Q2 *)	Q3	Q4	Q1	Q2	Q3	Q4	Q1
	2012/13	2012/13	2012/13	2012/13 2013/14		2013/14	2013/14	2013/14	2014/15
North and South America, %	28	13	-11	9	-26	8	40	-4	11
Europe, Middle East and Africa, %	-3	4	-5	29	18	32	15	13	31
Asia Pacific, %	11	17	53	9	8	-7	-9	-23	-5
Group, %	13	11	6	15	-2	10	15	-3	12

*) excluding Brachytherapy

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 - Jul 2014/15		Europe,
	North and	Middle East			% of
SEK M	South America	and Africa	Asia Pacific	Group total	net sales
Net sales	648	657	560	1,865
Operating expenses	-523	-482	-481	-1,486	80%
Contribution margin	125	175	79	379	20%
Contribution margin, %	19%	27%	14%
Global costs				-499	27%
Operating result before non-recurring items				-120	-6%
Non-recurring items				-2
Operating result				-122	-7%
Net financial items				-54
Income before tax				-176
May - Jul 2013/14		Europe,
	North and	Middle East			% of
SEK M	South America	and Africa	Asia Pacific	Group total	net sales
Net sales	770	582	560	1,912
Operating expenses	-505	-417	-441	-1,363	71%
Contribution margin	265	165	119	549	29%
Contribution margin, %	34%	28%	21%
Global costs				-469	25%
Operating result before non-recurring items				80	4%
Non-recurring items				-34
Operating result				46	2%
Net financial items				-57
Income before tax				-11
May - Apr 2013/14		Europe,
	North and	Middle East			% of
SEK M	South America	and Africa	Asia Pacific	Group total	net sales
Net sales	3,328	4,220	3,146	10,694
Operating expenses	-2,246	-2,785	-2,308	-7,339	69%
Contribution margin	1,082	1,435	838	3,355	31%

Contribution margin, %	33%	34%	27%
Global costs				-1,467	14%
Operating result before non-recurring items				1,888	18%
Non-recurring items				-161
Operating result				1,727	16%
Net financial items				-225
Income before tax				1,502

Rolling 12 months Aug - Jul 2013/14		Europe,
SEK M	North and South America	Middle East and Africa	Asia Pacific	Group total	% of net sales
Net sales	3,206	4,295	3,146	10,647
Operating expenses	-2,264	-2,850	-2,348	-7,462	70%
Contribution margin	942	1,445	798	3,185	30%
Contribution margin, %	29%	34%	25%
Global costs				-1,497	14%
Operating result before non-recurring items				1,688	16%
Non-recurring items				-129
Operating result				1,559
Net financial items				-222
Income before tax				1,337

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

	3 months	3 months
	May - Jul	May - Jul
SEK M	2014/15	2013/14
Operating expenses	-26	-30
Financial net	-8	-12
Income after financial items	-34	-42
Tax	7	9
Net income	-27	-33
Statement of comprehensive income
Net income	-27	-33
Other comprehensive income	4	-1
Total comprehensive income	-23	-34

BALANCE SHEET

	Jul 31,	Apr 30,
SEK M	2014	2014
Non-current assets
Shares in subsidiaries	1,969	1,877
Receivables from subsidaries	2,761	2,755
Other financial assets	87	81
Deferred tax assets	15	9
Total non-current assets	4,832	4,722
Current assets
Receivables from subsidaries	3,245	3,110
Other current receivables	52	48
Cash and cash equivalents	1,324	1,793
Total current assets	4,621	4,951
Total assets	9,453	9,673
Shareholders' equity	2,391	2,414
Untaxed reserves	26	26
Non-current liabilities
Long-term interest-bearing liabilities	4,468	4,360
Long-term liabilities to Group companies	38	38
Long-term provisions	53	30
Total non-current liabilities	4,559	4,428
Current liabilities
Short-term liabilities to Group companies	2,357	2,688
Accounts payable	6	9
Other current liabilities	114	108
Total current liabilities	2,477	2,805
Total shareholders' equity and liabilities	9,453	9,673
Assets pledged	―	―
Contingent liabilities	1,180	1,004