Year-end report May – April 2009/10
- Order bookings increased 13* percent.
- Net sales rose 9* percent to SEK 7,392 M (6,689).
- Operating profit increased to SEK 1,232 M (830).
- Profit after tax rose to SEK 833 M (546).
- Earnings per share after dilution improved to SEK 9.01 (6.00).
- Cash flow from operating activities improved to SEK 1,056 M (740).
Cash flow after investments was positive SEK 968 M (580).
- The Board has changed the policy for shareholder distribution, increasing the distribution of net profit in the form of dividends, repurchase of shares or comparable measures to at least 30 (20) % of net profit.
- The Board proposes a dividend of SEK 3.00(2.00) per share, corresponding to around SEK 278 M and 33 percent of net profit.
- In fiscal year 2010/11, 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.
President and CEO Tomas Puusepp comments
I am very pleased with Elekta’s performance during the fiscal year 2009/10. We continued to strengthen our market position with excellent growth in sales, earnings and cash flow. Demand remained strong for Elekta’s clinical solutions and services. Order bookings increased in all regions. The operating margin improved significantly from 12.4 percent to 16.7 percent. Earnings per share increased by 50 percent to SEK 9.01. Cash flow continued to be strong. Cash conversion exceeded our expectations and increased to 91 percent.
Increased focus on capital efficiency, more balanced geographical spread and an increase in aftermarket and software sales resulted in an improved seasonal stability in earnings and cash flow.
Elekta's success is based on our long term customer relations, our innovative capabilities to provide comprehensive solutions for treating cancer and brain disorders as well as our ability to execute and service our accounts in a timely and cost-effective fashion. Today Elekta has the most attractive product portfolio in the market. We are committed to improve patient care through innovation and constant improvement of our product portfolio. Hence we will continue to substantially invest in research and development in the coming years as well as to partner with leading universities and hospitals to foster innovation and bring new products into the market.
We are a world leader in clinical solutions for image-guided radiation therapy, stereotactic radiosurgery as well as oncology software. These solutions, which are developed in close collaborations with users around the world, make it possible for oncologists and neuro-surgeons to effectively treat cancer and neurological disorders with the highest precision while sparing healthy tissue. Today, Elekta’s clinical solutions and software are installed at over 5,000 hospitals around the world. Every year more than half a million patients receive treatment with Elekta’s radiation therapy equipment and every day more than 100,000 patients receive diagnosis, treatment or follow-up facilitated by our software systems.
During the fiscal year, Elekta has introduced two advanced image-guidance solutions for increased clinical accuracy and conformance, Intuity and Symmetry, as well as enhanced software for more effective treatment planning. With the acquisition of Resonant Medical we add new groundbreaking image guidance technology to our product portfolio. This enables exquisite visualization of soft tissue targets and a promising platform for next generation motion management.
The advantage of stereotactic radiosurgery in the treatment of brain metastases is receiving increased attention and was one of the key topics at the recent Leksell Gamma Knife Society meeting in Athens in May 2010. At the meeting a record of 332 oral and poster presentations were held. The need for effective solutions in this area, and an increased awareness of the excellent clinical results while preserving a high quality of life have led to increased demand for Leksell Gamma Knife® Perfexion ™ and have resulted in the best year ever for Elekta Neuroscience.
For the fiscal year 2010/11 we expect an increase in net sales by more than 10 percent in local currency, and operating profit increase in SEK of more than 15 percent. Currency is estimated to have a positive effect of about SEK 50 M including hedging effects on earnings for fiscal year 2010/11.
President and CEO
For further information, please contact:
Tomas Puusepp, President and CEO, Elekta AB (publ)
Tel: +46 8 587 25 520, e-mail: email@example.com
Håkan Bergström, CFO, Elekta AB (publ)
Tel: +46 8 587 25 547, e-mail: firstname.lastname@example.org
Stina Thorman, Vice President Corporate Communications, Elekta AB (publ)
Tel: +46 8 587 25 437, e-mail: email@example.com