Elekta details comprehensive action program at Capital Markets Day

STOCKHOLM, June 11 – At the Capital Markets Day in Stockholm today, Elekta’s
CEO, Tomas Puusepp, and key members of the management team, outlined a
comprehensive action program with the objectives to return to growth, improve
profitability, reduce costs and focus on cash flow.
Tomas Puusepp, who succeeded Niklas Savander on May 13, reaffirmed the company’s
strategic agenda with its growth drivers: Innovation Leadership, Commercial
Transformation, Lifecycle Management and Expand Addressable Market. He said that
the action program to return to growth and improve profitability – including a
reorganization as a means to drive commercial and operational excellence – will
help Elekta to reach the strategic agenda faster. It will also strengthen
Elekta’s global sales and marketing activities, lead to enhanced customer
services, improve customer focus and help capture the significant aftermarket
and software opportunities. The action program entails company-wide cost
reduction initiatives as well as efficiency programs to reduce cost of goods
sold. The program aims at a total cost reduction of SEK 450 million to be
realized in the next two years.

Puusepp said that his first priority is a return to growth during the second
half of fiscal year 2015/16, with an improved EBITA margin. In the mid-term
(fiscal years 2016/17 and 2017/18), Elekta aims at 3-5 percent net sales growth
per year in local currency and to increase the EBITA margin by more than 6*
percentage points. In the long-term, Elekta aims at net sales growth of more
than 10 percent per year, EBITA growth to exceed sales growth in SEK, a return
on capital employed of more than 20 percent and a net debt/equity ratio not to
exceed 0.50.

Ian Alexander, Chief Commercial Officer (CCO) as of July 7, detailed how he will
drive order intake and sales growth with a lean global organization built around
customer needs for integrated solutions, software and services. His short-term
focus will be on developing the service offering for Elekta customers and
strengthening global sales and marketing activities.

Chief Operating Officer Johan Sedihn, explained how synergies in Elekta’s
Solutions area will help reduce costs and improve efficiencies, especially with
a more streamlined end-to-end supply chain and clear prioritization within R&D,
while the commitment to continued innovation remains firm. Sedihn said Elekta’s
software solutions are also a key part of the company’s strategic R&D
investments.

Håkan Bergström, Chief Financial Officer, gave insight into Elekta’s backlog
maturity, announced measures to lower working capital and explained how the
margin improvement of 6 percentage points will be reached in the mid-term
(fiscal years 2016/17 and 2017/18). Bergström underlined how the company
significantly improved its ability to generate cash during last fiscal year,
with continued focus during the coming years.

During the event, Elekta’s Vice President Product Commercialization for
Neuroscience, Veronica Byfield Sköld, presented Elekta’s recently introduced
system for cranial radiosurgery, Leksell Gamma Knife® Icon™, which is the most
advanced system available for treating brain cancer and other disorders. This
system, upgradeable from the current Perfexion platform, is the first major
deliverable on Elekta’s large, ongoing strategic R&D investment across the
solution areas.

Kevin Brown, Global Vice President Scientific Research, updated investors on
Elekta’s MRI-guided radiation therapy system, Atlantic. He said that the
consortium is making good progress defining the clinical studies to demonstrate
its clinical value. The project is on track for timely market introduction;
Elekta confirmed the launch date of 2017 with delivery of the first systems in
2018. Atlantic will be a main contributor in reaching the long-term growth
ambition.

*With FY 2014/15 as base, excluding currency effects.

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For further information, please contact:
Johan Andersson, Director, Investor Relations, Elekta AB
Tel: +46 702 100 451, e-mail: johan.andersson@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 13:00 CET on June 11, 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.