Growth through innovation and Elekta's strategy within brachytherapy solutions highlighted at ASTRO Investor Meeting


Growth through innovation and Elekta's strategy within brachytherapy
solutions highlighted at ASTRO Investor Meeting

Elekta presented how innovation and product development as well as
increased presence in fast growing emerging markets are the cornerstones
in Elekta's growth strategy at an Investor Meeting in conjunction with
the 53rd annual American Society for Radiation Oncology (ASTRO) Meeting,
in Miami. In addition, Elekta also described how its recently acquired
brachytherapy solutions will contribute to Elekta's sustainable
profitable growth.

“Cancer incidence and the need for cancer care are steadily growing and
an important part of our growth strategy is to invest in innovation and
product development. We are constantly developing our solutions
targeting our customers and their patients' needs. In emerging markets,
the key is to make our solutions accessible and affordable for more
patients. In mature markets, the focus is on improving and adding value
with increased specialization and focus on disease-specific treatments”,
said Elekta's President and CEO, Tomas Puusepp.

He continued: “With our recent acquisition of Nucletron, we are
strengthening our offering with brachytherapy and increasing our
presence in many markets. Our global market share has now increased to
approximately 35% of the global radiation therapy market”.

Puusepp reiterated Elekta's strategy for sustainable profitable growth
for the coming years, launched during the Capital Markets Day in June,
2011. In 2015, Elekta is foreseen to reach a revenue growth of 13-15
percent. Earnings before interest and tax (EBIT) is expected to show
continued strong growth, helped by a decrease in SG&A from 22 to 19
percent of net sales. Earnings per share is expected to show an increase
by more than 60 percent in 2015 and net debt to equity is expected to be
below 0.5.

Jos Lamers, Executive Vice President, Elekta Brachytherapy Solutions,
highlighted the current performance and the strategy going forward. “We
are the global market leader with approximately 60 percent market share
in brachytherapy. Within the Elekta group, we will focus on increasing
the growth through leveraging the combined customer base of more than
6,000 customers, increasing presence especially in emerging markets,
higher pace within innovation, targeting specific customer needs and
driving awareness of the clinical advantages with brachytherapy. We are
committed to increasing the growth to be in line with Elekta's financial
targets”.

Åsa Hedin, Executive Vice President, Elekta Neuroscience, described
Elekta's large number of research collaborations aimed to drive
awareness and promote use of the Leksell Gamma Knife® and she reiterated
good growth prospects going forward.

Dee Mathieson, Senior Vice President, Elekta Oncology, exemplified
Elekta's success in R&D by describing solutions for treatment of
indications such as lung and prostate cancer.

“Radiotherapy techniques are becoming more sophisticated and the
specialized treatment of specific indications are increasing in
importance. The Clarity® with Autoscan* real-time soft tissue tracking
is an example of this. It is designed to improve treatments for specific
indications such as prostate cancer”. Mathieson also described the
challenges in the treatment of, for example, lung cancer where motion
management and accuracy are critical. Collaborations such as the Elekta
Lung Research Group play an important role in developing solutions for
improved treatments.

In addition, Dee Mathieson highlighted the recent progress regarding
Elekta's new Multileaf Collimator System (MLC), AgilityTM*. The system
has been tested and has received impressive customer feedback.

Todd Powell, Executive Vice President, Elekta Software, presented the
strategic direction within Elekta Software and said: “Our 400-person
strong R&D organization is constantly working on developing
best-in-class oncology software solutions and we are committed to
further strengthening our global positions within software, especially
in treatment planning. Our vision is to incorporate all our knowledge
into a software platform, meeting all customer needs. Today we are
demonstrating a preview of our first two modules in the MOSAIQ® RTP
suite, namely Locate and Evaluate”.

Jay Hoey, Executive Vice President, North America, highlighted Elekta's
good progress in North America. “The main driver in the market is the
replacement cycle. We have a strong position, confirming our good
progress”.

Tomas Puusepp, President and CEO, concluded with a presentation of the
outlook for the fiscal year 2011/12. “Net sales are expected to grow by
more than 10% in local currency,” Puusepp said. “Also, our operating
profit in SEK is expected to increase by more than 10%. The
newly-acquired Elekta Brachytherapy Solutions will add net sales of SEK
850 M and EBIT of SEK 170 M. Non-recurring items are estimated to amount
to SEK -170 M related to the integration of Nucletron and SEK 170 M for
the divestment of the Pathology Information Systems business”.

*Agility and the Autoscan component are works in progress and not
available for sale or distribution.

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

Stina Thorman, Vice President Corporate Communications, Elekta AB (publ)
+46 8 587 25 437, stina.thorman@elekta.com

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

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 19.00 CET on
October 3, 2011.

About Elekta

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 healthcare 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 3,300 employees
globally. The corporate headquarters is located in Stockholm, Sweden,
and the company is listed on the Nordic Exchange under the ticker EKTAb.

 

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