Interim report May – January 2013/14

  · Order bookings amounted to SEK 8,352 M (8,080), equivalent to an increase of
8* percent.
In the third quarter order bookings increased 15* percent.
  · Net sales increased 7* percent to SEK 6,740 M (6,608).
  · EBITA amounted to SEK 895 M (1,053) before non-recurring items of SEK -61 M
(-24). The decline is mainly related to lower than expected delivery volumes of
Leksell Gamma Knife® and currency effects amounting to SEK -140 M. In the third
quarter EBITA amounted to SEK 340 M (454) before non-recurring items.
  · Net income amounted to SEK 333 M (504). Earnings per share amounted to SEK
0.87 (1.31) before dilution and SEK 0.87 (1.30) after dilution.
  · Cash flow after continuous investments amounted to SEK -550 M (335). In the
third quarter cash flow after continuous investments was SEK -27 M (112). A
strong cash flow is expected in the fourth quarter.
  · Due to lower-than-expected delivery volumes of Leksell Gamma Knife® and
delays in expected deliveries to emerging markets, the outlook for the full-year
has been revised.
- In fiscal year 2013/14, net sales is expected to grow by approximately 7
percent in local currency compared to last year.
- EBITA is expected to grow by approximately 3 percent in local currency
compared with last year. Exchange rate movements are expected to have a negative
impact of about approximately 5 percentage points on EBITA growth.
The prior outlook, published in the Q2 report, expected net sales to grow by
more than 10 percent in local currency. EBITA was expected to grow by
approximately 10 percent in local currency. Exchange rate movements were
expected to have a negative impact of approximately 5 percentage points on EBITA
growth.
* Compared to last fiscal year based on constant exchange rates.


President and CEO comments

Strong order bookings
Overall market development continues to be good and we are very pleased with our
order booking trend. Order bookings rose 15* percent in the third quarter, and
8* percent during the first nine months. In North and South America, order
bookings rose 40* percent in the quarter. In the US, we see a consolidation of
private cancer care with a market that is moving toward more long-term strategic
partnerships and larger orders. The strong growth in Europe, Middle East and
Africa continued, with order bookings rising 15* percent in the quarter. Our
growth in China continued, with order bookings growth during the quarter
exceeding the market average. In Asia Pacific, as a whole, quarterly order
bookings declined 9* percent in relation to high order bookings last year. Weak
currencies in some emerging markets have also affected order growth due to
delayed investments.

Weak deliveries in the third quarter affected EBITA
Net sales rose 1* percent during the third quarter and 7* percent during the
first nine months. Our third quarter was significantly impacted by lower-than
-expected delivery volumes of Leksell Gamma Knife®, primarily in North and South
America and Asia Pacific. In addition, weaker currencies, particularly in some
emerging markets, have affected volumes. EBITA before non-recurring items for
the third quarter amounted to 340 (454) and to SEK 895 M (1,053) for the first
nine months. Currency effects in the period amounted to SEK -140 M.

We are not satisfied with our third quarter results and particular not with our
Leksell Gamma Knife® business. We have analyzed the prospects for the full year
and initiated a number of corrective actions to ensure improved performance. Our
long term prospects remains and we are confident that Leksell Gamma Knife® will
be back on track with volumes starting to recover in the fourth quarter. At the
same time we continue to invest in product development to further enhance our
offering.

Cash flow from operating activities was SEK 153 M (258); cash flow after
continuous investments was      SEK -27 M in the third quarter. Compared with
the second quarter, we have increased inventory by some SEK 250 M ahead of
planned deliveries in the fourth quarter. We expect a strong cash flow in the
fourth quarter.

Favorable trend for Versa HD
Our most advanced linear accelerator, Versa HD™, was launched one year ago.
Sales has exceeded our expectations and Versa HD™ now accounts for over 60
percent of our system sales in applicable markets in the US and Europe.

Strategic partnerships for better cancer care
During the quarter, we secured a long-term partnership agreement with a US
health network, McLaren Health Care. This type of comprehensive partnership will
become increasingly important in our business. In addition to our leading
hardware and software solutions, we will support and facilitate the development
of more efficient and higher quality cancer care throughout McLaren’s network.

Adjusted outlook for the year
Lower-than-expected volumes of Leksell Gamma Knife® and delays in expected
deliveries to emerging markets have led to a revised outlook for the full-year.
Net sales growth has been adjusted from more than 10 percent to approximately 7
percent in local currency, and EBITA is expected to grow by approximately 3
percent in local currency, adjusted from 10 percent.

Our long-term strategy and objectives remain unchanged, as does the continued
growing need and demand for Elekta’s superior clinical solutions. Based on the
company’s unique market position, we will continue to pursue our commitment to
the development of modern cancer care.

Tomas Puusepp,
President and CEO

* Compared with last fiscal year, based on constant exchange rates.


Conference call
Elekta will host a telephone conference at 10:00 – 11:00 CET on February 27,
with President and CEO Tomas Puusepp and CFO Håkan Bergström.

To take part in the conference call, please dial in about 5-10 minutes in
advance and use the access code 941615.

Swedish dial-in number: +46 (0)8 5052 0110, UK dial-in number: +44 (0)20 7162
0077, US dial-in number: + 1 877 491 0064.

The telephone conference will also be broadcasted over the internet (listen
only). Please use the link: http://webeventservices.reg.meeting
-stream.com/84836_elekta/

Financial information
Year-end report May – April 2013/14               May 28, 2014
Interim report May – July 2014/15                   August 28, 2014
Annual General Meeting 2014                        August 28, 2014
Interim report May – October 2014/15             November 27, 2014

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

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

Elekta AB (publ)
Corporate registration number 556170-4015
Kungstensgatan 18, ­Box 7593, SE 103 93 Stockholm, Sweden

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 07:30 CET on February 27, 2014.