Elekta releases preliminary financial results

Preliminary full-year report May – April 2014/15

  · Results significantly below guidance primarily due to weak performance in
the US; large orders did not close as anticipated; delays in deliveries from
order backlog.
  · Preliminary order bookings came in at SEK 11,900 M (12,253), a decrease of 3
percent. Based on constant exchange rates the decrease was 13 percent.
  · Preliminary net sales amounted to SEK 10,800 M (10,694), equivalent to an
increase of 1 percent. Based on constant exchange rates the decrease was 8
percent.
  · EBITA is expected to be approximately SEK 1,400 M, before non-recurring
items.
  · Preliminary cash flow after continuous investments amounted to approximately
SEK 800 M (494).
  · Niklas Savander has, with immediate effect, stepped down as CEO. Tomas
Puusepp has been appointed as new CEO.

Figures are preliminary and not yet audited and can differ compared with the
final figures that will be disclosed in the year-end report on June 2.
STOCKHOLM, May 13, 2015 – Elekta’s results for the fourth quarter and the full
year were significantly below expectations and the guidance given. This was
primarily due to weak performance in the US. Large orders did not close as
anticipated.

Results were also impacted by delays in deliveries from order backlog,
particularly in emerging markets, due to market conditions, political
developments, war and civil unrest.

Due to increased risk, the company incurred bad debt losses of SEK 58 M in Q4,
predominantly from projects in Iraq and Libya. Provisions for bad debt have been
increased with SEK 100 M to approximately SEK 150 M.

The company has also thoroughly reviewed risks in its order backlog and, as a
consequence, cancelled orders valued at approximately SEK 700 M. This is related
to projects in North America where hospital consolidation has led to order
cancellations, as well as projects in Latin America and India that are not
making sufficient progress and are not expected to be completed in a reasonable
time frame primarily due to customers’ financing difficulties.

Preliminary EBITA, before non-recurring items, for fiscal year 2014/15 is
expected to be approximately SEK 1,400 M, negatively affected mainly by the
decrease in net sales. The non-recurring items amounted to SEK -158 M.

Preliminary cash flow after continuous investments improved compared with last
year and amounted to SEK 800 M (494). The improvement mainly came from a
reduction in working capital.

Niklas Savander has, with immediate effect, stepped down from his position as
President and CEO of Elekta AB (publ). The Board of Directors has appointed
Tomas Puusepp as President and CEO as of today. Tomas Puusepp is currently
Executive Director of the Elekta Board and served as President and CEO of Elekta
during fiscal years 2005/06 to 2013/14.

Elekta will publish its full-year report on June 2 at 07:30 CET.

Conference call
Elekta will host a telephone conference at 10:00–10:45 CET on May 13 with
Laurent Leksell, Chairman of the Board, Tomas Puusepp, President and CEO and
Håkan Bergström, CFO.

To take part in the conference call, please dial in about five minutes in
advance.

  · UK dial-in number: +44 (0)20 342 814 08
  · US dial-in number: +1 855 831 59 44
  · Swedish dial-in number: +46 (0)8 566 427 00

The telephone conference will be broadcasted live online (for the possibility to
ask questions, please also dial in). Please use the link:
http://event.onlineseminarsolutions.com/r.htm?e=993744&s=1&k=4A65A92D0539782AF11
A 
285B97E3D2E6

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For further information, please contact:
Håkan Bergström, CFO, Elekta AB (publ)
Tel: +46 8 587 25 547, e-mail: hakan.bergstrom@elekta.com
Time zone: CET: Central European Time

Gert van Santen, Group Vice President Corporate Communications, Elekta AB
Tel: +31 653 561 242, e-mail: gert.vansanten@elekta.com
Time zone: CET: Central European Time

Tobias Bülow, Director Financial Communication, Elekta AB
Tel: +46 722 215 017, e-mail: tobias.bulow@elekta.com
Time zone: CET: Central European Time
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 04:00 CET on May 13, 2015.
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 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 3,800 employees globally. The
corporate headquarters is located in Stockholm, Sweden, and the company is
listed on NASDAQ Stockholm. Website: www.elekta.com.