Year-end report May – April 2015/16

Fourth quarter

-      Net order bookings increased 17 percent to SEK 4,520 M (3,856) and
increased 16 percent based on constant exchange rates.
-      Net sales decreased 6 percent to SEK 3,607 M (3,855) and decreased 6
percent based on constant exchange rates.
-      EBITA* amounted to SEK 785 M (739). Non-recurring items was SEK -459 M (
-1) and bad debt losses was SEK -43 M (-138).
-      Operating result was SEK 155 M (499).
-      Net income amounted to SEK 78 M (343). Earnings per share was SEK 0.20
(0.90) before and after dilution.
-      Operational cash conversion was 261 percent (260).
-      The Board of Directors appointed Richard Hausmann as new President and
CEO effective June 10, 2016.
-      The Board of Directors proposes a dividend of SEK 0.50 (0.50) per share
for fiscal year 2015/16 and that the dividend will be divided into two payments
from now on.

Fiscal year 2015/16

-      Gross and net order bookings increased 8 percent and increased 1 percent
based on constant exchange rates. Net order bookings was SEK 12,880 M (11,907).
-      Net sales increased 4 percent to SEK 11,221 M (10,839) and decreased 3
percent based on constant exchange rates.
-      EBITA* amounted to SEK 1,639 M (1,472). Non-recurring items was SEK -598
M (-3) and bad debt losses was SEK -149 M (-166).
-      Operating result was SEK 423 M (937).
-      Net income amounted to SEK 145 M (558). Earnings per share was SEK 0.36
(1.45) before and after dilution.
-      Operational cash conversion was 111 percent (126).
-      The Transformation program to drive operational excellence and improved
financial performance is progressing according to plan. Realized cost savings
for the year was SEK 200 M.

* Adjusted for non-recurring items and bad debt losses.

Transformation program targets and outlook
The Transformation program, announced in June 2015, is progressing according to
plan. The transformation has the objective of creating leaner and more efficient
operations with improved profitability and an increased focus on cash flow. It
also includes actions to strengthen customer services and innovation capacity
with focus on time to market.

 The targets for the Transformation program are:

-      To reach an EBITA margin of 20 percent in fiscal year 2017/18.
-      To realize cost reductions of SEK 700* M with full effect from 2017/18.
Cost savings in 2015/16 were SEK 200 M.
-      To maintain net working capital to sales below 5 percent.
-      To implement a more efficient produce-to-order process in order to
further reduce inventory levels. This requires a temporary reduced production
and shipment volume, with a one-off negative revenue impact estimated at about
SEK 500 M in the first half of fiscal year 2016/17.
       As a consequence, Elekta expects a weak result during the first half of
fiscal year 2016/17.
-      Additional expected costs related to the transformation are estimated to
be approximately SEK 300 M and will be charged as a non-recurring item during
fiscal 2016/17.

Going forward, Elekta will not provide a net sales outlook, but continue to
provide targets for the transformation program and describe performance as well
as quarterly updates on current market dynamics – geographically as well as on
progress for new technology. Market share development by region will be
presented twice a year.

* Base year 2014/15, excluding currency effects.

President and CEO comments
Large strategic wins in all regions, resulted in strong orders for the fourth
quarter 2015/16. Cost savings and activities realized from our transformation
contributed to an improved EBITA-margin and lower net working capital.

Large strategic wins
We delivered strong order growth in the fourth quarter, driven by several large
strategic wins. These include MD Anderson and InnerPacific Alliance for Cancer
Care in the US and NHS Supply Chain in the UK. In region Asia Pacific, we signed
a major collaboration with GenesisCare. Despite difficult and challenging market
conditions, particularly in emerging markets, we experienced a healthy demand
for linear accelerators, including Versa HD™, as well as good momentum in the
service business. In total, and from a relatively easy comparison last year, net
order bookings increased 16* percent in the fourth quarter.

Gross order bookings totaled SEK 13.8 billion in fiscal year 2015/16, up 8
percent in SEK and 1 percent based on constant exchange rates. In region Europe,
Middle East and Africa, gross orders improved in the fourth quarter and were
flat for the fiscal year, increasing by 3 percent in SEK. North and South
America grew by 2* percent and 12 percent in SEK and Asia Pacific by 1* percent
and 10 percent in SEK.

Good momentum in service business
It has been an intensive year of change and implementation of our Transformation
program. In line with our expectations, net sales decreased slightly by 3*
percent for the fiscal year or increased by 4 percent in SEK. Our service
business grew by 11* percent, which reflects the execution of our strategy to
drive service sales. The good performance in our service business in combination
with realized cost savings, drove the improvement in the EBITA-margin**, which
increased by one percentage point to 14.6 percent. In total, EBITA** increased
by 11 percent to SEK 1,639 M compared to last year.

Net working capital ratio ahead of target
We have reached our target of a net working capital to sales ratio below 5
percent. Operational cash conversion was 111 percent (126). Cash flow was below
plan in Asia Pacific due to longer lead times for payments. We continue to focus
on working capital reduction and we expect cash flow to improve in the next
fiscal year.

Transformation progressing according to plan
Our transformation is progressing according to plan. It will secure improved
profitability and performance, as well as leaner and more efficient operations
and will enable us to maximize our ability to innovate and provide the best
solutions for our customers and their patients. By the end of fiscal year
2015/16, we had realized cost savings of SEK 200 M. We are confident of reaching
our target of reduced costs of SEK 700 M in total, achieving an EBITA margin of
20 percent for fiscal year 2017/18.

We have begun to implement our produce-to-order process to reduce costs, lower
net working capital and to improve cash flow. This is expected to result in a
one-off negative revenue effect of SEK 500 M and, consequently, we expect a weak
result during the first half of fiscal year 2016/17.

Leading innovation for improved care
We continue to strengthen our innovation organization, and from May 1, 2016, all
R&D activities have been brought together in one function under a new Chief
Technology Officer. The highest priority is to drive growth through meaningful
innovations while we continue to strengthen our service and support organization
as well as customer satisfaction.

We are confident that our significant investments in product development will
strengthen our future growth. Our image guided radiation therapy project, MR
-linac, continue to receive a lot of interest and attention, and is on track for
commercialization during calendar year 2017. We have so far installed non
-clinical systems at three consortium research sites and the four remaining
members will receive their systems during calendar year 2016.

We continue to drive innovation and strengthen our offering and service in all
product areas. We launched Leksell Gamma Knife® Icon™, which now have received
regulatory approval in Japan, and saw orders improve during the fourth quarter.
A milestone was recently reached, as the millionth patient received treatment
with Leksell Gamma Knife. The very successful 18th Leksell Gamma Knife Society
Meeting was held in Amsterdam in May. We receive great feedback from customers
who use Leksell Gamma Knife Icon clinically – including oncology departments
that are now able to provide the most precise, safe and proven solution for
stereotactic radiosurgery and stereotactic radiotherapy for brain tumors.

Within software, we have launched a new version of Monaco, with up to four times
faster calculation speed and industry-leading precision.

We had a good year in Brachytherapy. Growth in order bookings was strong and we
launched new solutions such as Venezia™, a universal applicator for treating
advanced gynecological cancer.

Right now we are changing many processes and how we work in Elekta. While doing
this, it’s important that we maintain the right perspective: the market we serve
is focused on human beings – the patients – whose lives we can affect
positively. Our commitment, our enthusiasm and motivation to develop and improve
the way cancer and brain disorders are treated is stronger than ever.

I would like to thank all colleagues for their contribution and support to
successfully drive our transformation. And I’d like to welcome Elekta’s new
President and CEO, Richard Hausmann, who will take over as of June 10. Richard
has nearly three decades of experience in the medical device industry and a
solid track record of bringing clinical innovations to the global health care
market.

Tomas Puusepp
President and CEO

*Based on constant exchange rates

**Before non-recurring items and bad debt losses

Conference call
Elekta will host a telephone conference at 10:00-11:00 CET on June 1, with
President and CEO Tomas Puusepp and CFO Håkan Bergström.

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

Swedish dial-in number: +46 (0)8 566 426 99
UK dial-in number: +44 (0) 203 008 98 06
US dial-in number: +1 855 831 59 45

The telephone conference will also be broadcasted over the internet (listen
only). Please use the link:
event.onlineseminarsolutions.com/r.htm?e=1188015&s=1&k=9793ACA5BB14E48064138C436
2 
674826

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 8 587 25 415
johan.andersson@elekta.com

Tobias Bülow
Director Financial Communication, Elekta AB (publ)
+46 8 587 25 734
tobias.bulow@elekta.com