Interim report May – July 2008/09

• Order bookings rose 9* percent. Order backlog at an all time high level of SEK 5,229 M.
• Net sales amounted to SEK 1,025 M, an increase by 13* percent.
• Operating profit amounted to SEK 13 M (36), due to a scheduled low volume of deliveries.
• Profit after taxes amounted to SEK 1 M (20).
• Earnings per share after dilution was SEK 0.02 (0.22).
• Cash flow from operating activities was negative SEK 163 M (neg. 28) due to seasonal build-up of working capital.
• Elekta reiterates the outlook of a net sales growth of over 15 percent in local currency and operating profit growth of over 15 percent for the full year 2008/09.

* Compared to the first quarter last fiscal year at unchanged exchange rates.


President Tomas Puusepp comments

Demand for Elekta’s clinical solutions, products and services remains strong. Elekta continues to strengthen its market share and the product portfolio is more competitive than ever before.

Important when assessing Elekta’s development, order bookings on a rolling twelve-month basis increased by 12 percent, despite a negative currency effect.

During the first quarter our major efforts were to integrate CMS’ organization and offering with Elekta’s other software solutions. Elekta’s software systems support the entire workflow in cancer treatment, from diagnosis to dose planning, treatment, administration and follow-up. For the present fiscal year, CMS adds to net sales, but contributes only marginally to op-erating profit.

Elekta will strengthen its position in emerging markets. Our own office in Brazil was up and running by May 1 and Latin America will be an important growth market for Elekta going forward. We will also continue to invest substantially in R&D, with the aim of improving quality and cost-efficiency in cancer care and management of brain disorders.

The introduction of Elekta VMAT has created a good momentum in the market place and we see a continued positive trend for business area oncology systems going forward, even if the competition in this segment is high. Another growth driver in a mid-term perspective is the possibility to market Elekta Compact™ in markets in need of rapid build-up of care capacity.

The interest for Leksell Gamma Knife® Perfexion™ remains strong. During the first quarter Leksell Gamma Knife® Perfexion™ systems were delivered to Korea and Japan . We also see high interest in Elekta Axesse™, our fully integrated system for stereotactic radiation therapy.

After we communicated the full year outlook for 2008/09, particularly the US dollar has developed favorably for Elekta. Provided that today’s currency rates remain for the full year, the positive effect on Elekta’s earnings will be significant from the third quarter and onwards.

As an effect of a scheduled low level of delivery volumes the first quarter’s operating profit was weak. However, we reiterate the previously communicated outlook for 2008/09. Net sales and operating profit will be significantly higher in the second half of the fiscal year, compared with the first.


Tomas Puusepp
President and CEO