|[June 17, 2014]
Elekta Presents Strategic Agenda to Outgrow the Market
STOCKHOLM --(Business Wire)--
During a capital markets day in Stockholm today, Elekta (STO:EKTAB)
President and CEO, Niklas Savander, underpinned the company's ambition
to return to growth levels above 10 percent. "The growth drivers behind
radiation therapy are striking. Elekta is very well positioned to
capture the potential," he said.
He elaborated on the market opportunity for Elekta, particularly in
emerging markets, which account for 35 percent of its business, and gave
insight into a research-based market model that Elekta uses to calculate
global growth levels.
Savander also outlined four strategic focus areas: Innovation
Leadership, Commercial Transformation, Life Cycle Management and Grow
the Pie. "Our Innovation Leadership will continue with increased
attention to software and business model innovation. Commercial
Transformation is about the capability of selling solutions as well as
order-to-cash management. Life Cycle Management is about leveraging the
installed base in order to optimally capture value. And Grow the Pie is
about the potential for radiation therapy to take a bigger share in the
cancer care continuum.
"These four focus areas are the core of Elekta's strategic agenda, which
will enable Elekta to continue its growth track record and leadership in
radiation therapy and brain disorders," he added.
"For this fiscal year net sales is expected to grow by 7-9 percent in
local currency, including a weak first quarter," he said, while
stressing the importance for Elekta to continuously work to improve
efficiency. Programs related to this were announced in the year-end
report on May 28, including a restructuring program of SEK 100 million.
Elekta CFO, Håkan Bergström, restatedthe target of a strong growth with
increased profitability. He explained how Elekta will continue to
leverage on the fixed cost base. "We will focus our efforts on becoming
more efficient in our commercial processes," he said. "We target to
reach net working capital of 10 percent of net sales within two years".
Bergström reiterated that cash conversion is targeted to return to
around 70 percent for fiscal year 2014/15.
Presentations were also given by Jay Hoey, Executive Vice President
North America; Gilbert Wai, Executive Vice President Asia Pacific; Ian
Alexander, Executive Vice President Europe & Africa, Latin America,
Middle East (AFLAME); and by Kevin Brown, Global Vice President
· Strengthened market position in North America; consolidation benefits
· Strong drivers for long-term growth intact in Asia Pacific
· Continued success in China, the company's second largest market, with
over 50 percent market share
· Leader in established and emerging markets in Europe & AFLAME
· Clinical benefits of MRI-guided radiation therapy look promising;
recent progress includes an expanding consortium
The capital markets day was held on June 17 in Stockholm. The
presentations and video replay are available on www.elekta.com/ir.
*In local currency
# # #
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
June 17, 2014.
Elekta is a human care company pioneering significant innovations and
clinical solutions for treating cancer and brain disorders. The company
develops sophisticated, state-of-the-art tools and treatment planning
systems for radiation therapy, radiosurgery and brachytherapy, as well
as workflow enhancing software systems across the spectrum of cancer
care. Stretching the boundaries of science and technology, providing
intelligent and resource-efficient solutions that offer confidence to
both health care providers and patients, Elekta aims to improve, prolong
and even save patient lives. Today, Elekta solutions in oncology and
neurosurgery are used in over 6,000 hospitals worldwide. Elekta employs
around 3,500 employees globally. The corporate headquarters is located
in Stockholm, Sweden, and the company is listed on the Nordic Exchange
under the ticker STO:EKTAB. Website: www.elekta.com.
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