Q1 interim report 2016/2017: Multiyear managed-services …€¦ · 05-09-2016 · Q1 interim...
Transcript of Q1 interim report 2016/2017: Multiyear managed-services …€¦ · 05-09-2016 · Q1 interim...
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Q1 interim report 2016/2017:
Multiyear managed-services
agreements contribute to
Sectra’s positive performance
Telephone conference September 5, 2016
Torbjörn Kronander, CEO and President
Simo Pykälistö, CFO and Executive Vice President
We contribute to a healthier and safer society.
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Slide 1030
Q1 HighlightsTorbjörn Kronander, CEO and President Sectra AB
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Imaging IT Solutions
Decreased sales in “Rest of Europe”.
The large demand boost in the UK is
now passed.
Negative impact of currency
exchanges rates.
Increasing focus on cancer
diagnostics.
Growing number of pilot installations
in Digital pathology.
Net sales and operating profit
Business line Imaging IT Solutions
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Imaging IT Solutions
Long-term contract signed in the Netherlands
Track record of 100% availability
in radiology IT secures long-term
Vendor Neutral Archive (VNA)
contract with Dutch Alrijne
Hospital.
Consolidation and coordination of
healthcare resources to increase
cost efficiency.
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Imaging IT Solutions
peer60: “Hottest trends in Imaging IT in the UK”
UK is a very important market for Sectra;
peer60 report May 2016:
– The number of imaging examinations
conducted over the last ten years has
increased by over 40%,
– UK CAGR of 3.4% expected.
– Digital pathology not included
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Imaging IT Solutions
Enabling more efficient cancer care
Kuopio University hospital orders
Sectra´s solution for digital
pathology.
Kuopio is a previous Radiology
PACS customer and the solution is
part of Sectra’s Integrated
Diagnostics framework.
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Future growth projects
Software systems for
planning orthopedic surgery
Medical education Research
IT security for
critical infrastructure
Business Innovation
Digital pathology
Secure Communications Imaging IT
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Research
Special focus on the
diseases related to aging:
- cancer (incl. pathology)
- skeletal
- (circulatory)
- (neurodegenerative)Some
10-15% of net sales
is invested in
R&D
each year
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Secure Communications
Slight improvement over Q4.
Reported profit.
Increasing interest outside Sweden
for Tiger-systems.
Critical infrastructure; substantial
interest but a slow market
Net sales and operating profit
Business line Secure Communications
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Secure Communications
Long-term investments in Critical IT security
Growth strategy:
Concentrate on energy sector.
Production and Distribution operators.
First customers now fully operational.
Expand into new geographic markets
based on solid references in Sweden.IT security solutions for the energy
sector - a fast-growing market.
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France office opened
Part of our strategy to expand to new
markets after careful evaluation.
Similar healthcare structure as other
Northern European markets.
Market driven by consolidation and
coordination of healthcare resources to
increase cost efficiency.
Very small Sectra presence.
Extend sales and services to Sectra’s
entire medical IT portfolio.
Audrey Boulinguez
appointed as President
of Sectra France.
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Local and global presence
Sectra subsidiaries in 14 countries.
– France (Medical) and Finland (Communications)
established 2015/2016.
Partner sales in selected markets.
Customers in > 60 countries.
Sectra’s largest markets are:
- Scandinavia,
- USA,
- UK and
- the Netherlands.
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All financial targets for the Group fulfilled
StabilityEquity/Assets ratio
%
Target >30%
Target
>15%
Target
>50%
ProfitabilityOperating margin
%
GrowthEBIT/share growth
over a 5-year period, %
52.7
Priority
113.715.4
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Proposed redemption program/dividend
The Board proposes that
SEK 4,50 per share is
transferred to shareholders
through a redemption
program.
No ordinary dividend is
proposed.
Redemption/dividend per share
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Slide 1030
Financial figuresSimo Pykälistö, CFO & Executive Vice President Sectra AB
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Order bookings and net sales
Order bookings and net salesSEK million
Best order intake in US and
Netherlands
Unfavorable currency
fluctuations, mainly GBP.
Net sales increased 2.5%.
(Adjusted for currency
fluctuations 5.6%)
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Changes compared with the three-month period
previous fiscal year:
Sales growth by geographic market
Sales by geographic marketSEK million 12 month rolling
Rest of World +31%.
Sweden +7%.
US + 6%.
UK +6%.
Netherlands +3%
Rest of Europe -11%.
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Changes compared with the three-month period
previous fiscal year:
Sales growth by business segment
Sales by business segmentSEK million 12 month rolling
Imaging IT Solutions -12%.
Customer Financing +48%.
Secure Communications -6%.
Business Innovation +101%.
Other operations +1%.
Eliminations mainly
Group-financed
large customer
contracts.
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Group-financed customer projects
Group-financed customer contracts:
• Revenue and profit eliminated on the group level during the installation.
• Delayed revenue and profit recognition for the Group.
• Long term revenue and profitability improved.
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Changes compared with the three-month period
previous fiscal year:Operating earningsSEK million 12 month rolling
Operating profits
Operating profit +2.2%.
Adjusted for currency
fluctuations +5.7%.
Operating margin 13.9%.
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Increasing cash flow
July 31,
2016
Quarter 1
July 31,
2015
Quarter 1
July 31,
2016
12-month
July 31,
2015
12-month
2015/2016
Full year
Cash flow after changes in
working capital, SEK Million
17.6 6.6 196.9 63.6 185.9
Cash flow/share after
dilution, SEK
0.46 0.17 5.13 1.66 4.85
A number of orders received previous year for medical IT solutions
have reached operational phase.
Long-term, the contracts will contribute to a solid future for the
Sectra Group.
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Slide 1030
Sectra’s way forwardTorbjörn Kronander, CEO and President Sectra AB
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Population in a typical European society
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Neurological
Cardiac
Cancer
Skeletal
- Osteoporosis/Fractures
- Orthopedics/Joint replacement Medic
al im
agin
g
Areas related to the 'old people's
disease:
Growth areas in healthcare
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Focus on cancer diagnostics
Increasing disease with older population and lifestyle
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New methods are revolutionizing cancer survival
Precision medicine diagnostics,
including elaborate monitoring of
treatment
Integrated diagnostics
Companion diagnostics
Lifelong monitoring of survivors,
driving market size.Cancer is changing -
from a deadly disease
to a chronic disease.
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Integrated diagnostics in cancer care
A combination of radiological
and pathology imaging for
cancer diagnostics make a lot of
sense.
Sectra is unique with a unified
solution that handles both of
these as well as mammography.
Significant interest in this area
at last year´s trade shows.
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Secure Communication
Improvement still needed.
Continue to grow sales in rest of
Europe. Demand is driven by increasing
general uncertainty in Europe.
Opportunities: Critical Infrastructure security.
Very conservative market so change
is slow.
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Future growth projects
Software systems for
planning orthopedic surgery
Medical education Research
IT security for
critical infrastructure
Business Innovation
Digital pathology and
Integrated diagnostics
Secure Communications Imaging IT
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Focus forward
86%80% Maintain high customer satisfaction ratings.
Reach financial targets.
Internal effectiveness.
Prioritize hosted solutions whenever possible.
Prioritize large market share in a few
geographies.
Focused expansion, add new geographical
markets carefully but decidedly.
Focus on growth areas.
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Opportunities in major segments
Imaging IT Solutions
Be good in general imaging
diagnostics, but
Excel in Cancer Diagnostics
Expand business with existing
customers.
Cloud services/hosted solutions
whenever possible.
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Opportunities in major segments
Secure Communications
The political uncertainty drives
security business throughout Europe.
Use brand and knowledge
to leverage in Critical Infrastructure.
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Slide 1030
Being a shareholder in SectraTorbjörn Kronander, CEO and President Sectra AB
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Why Sectra?
High customer satisfaction.
Positioned in growing niche markets.
A strong brand in markets where
trust is critical.
Management owns shares.
Substantial and increasing recurring revenue.
Profitable, strong cash flow and a solid balance sheet.
Sustainable investments in R&D with exciting future
opportunities.
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Upcoming IR events
September 6, 2016:
Annual General Meeting in Linköping 4:00 p.m.
September 8, 2016:
Investor meeting at Swedbank in Stockholm.
December 7, 2016:
Public announcement of the six-month report 8:00 a.m.
Telephone conference for presentation of the report 10:00 a.m.
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Slide 1030
Your feedback is important!
Please let us know what you think at
sectra.com/irsurvey
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Slide 1030
Questions?
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Torbjörn Kronander, CEO and President
Simo Pykälistö, CFO and Executive Vice President
Sectra AB
Ph +46 13 23 52 00