Elekta AB -publ-; Elekta's Annual General Meeting 2001.Business Editors and Medical/Health Writers STOCKHOLM, Sweden--(BW HealthWire)--Sept. 27, 2001 Chief Executive Officer Laurent Leksell reported on the performance of the Company during the 2000/2001 fiscal year and presented Elekta's mission, vision and strategy.
Elekta's mission is to help people fight serious diseases.
Elekta's vision is to always be the first choice.
Elekta's strategy is to provide...
-- ...clinically effective and cost-efficient solutions and
services for improved management of cancer and brain
disorders, aimed at enhanced quality of life.
-- ...progressive and pioneering technology for precise radiation
and minimally invasive techniques.
-- ...excellence in customer service and support.
-- ...operational proficiency based on Elekta Values.
As a result of a concerted team effort and successfully
implemented restructuring program, has Elekta during fiscal year
2000/01:
- advanced from an operating loss of SEK 37 M to an operating
profit of SEK 92 M, an improvement of SEK 129 M.
- increased order bookings by 33 percent to SEK 2,402 M.
- reached an all-time high order backlog of SEK 2,112 M.
- increased net sales by 21 percent to SEK 2,160 M.
- attained a strong balance sheet.
- posted a positive cash flow of SEK 226 M.
- tripled its market capitalization during the fiscal year.
The prioritized goals for the past fiscal year 2000/2001 were
achieved. These were to:
- increase growth, market share and earnings in the US market.
- increase demand for the Leksell Gamma Knife in European
region.
- increase service and aftermarket sales. Increased 40 percent.
- improve productivity and cost efficiency.
Development in various geographic markets was reported.
- Development in Europe is highly positive, particularly within
cancer care. Order bookings rose by 43 percent and market
share within oncology is more than 50 percent. Penetration of
Leksell Gamma Knife is, however, low. Productivity within the
service and market organization has increased.
- The US is Elekta's largest market for Leksell Gamma Knife.
Elekta is the third largest supplier of oncology systems and
the goal is to increase market share in oncology.
Strengthening of management and the sales and service
organization in the US is beginning to yield results. Order
bookings increased by 18 percent.
- Japan is a stable and profitable market for neurosurgery
products. Leksell Gamma Knife is well represented.
Radiotherapy equipment for cancer has received approved
product registration and the focus on sales and service of
oncology products is also continuing in 2001/2002.
- Asia has developed strongly, particularly in oncology. Order
bookings rose by 261 percent. China, Korea, Taiwan and
Australia are the most important markets. Manufacturing,
distribution and service as well as Group purchasing is
carried out in a new majority owned company in Shanghai.
Continued expansion of this company will continue during
2001/2002.
Results for the first quarter, May-July, of fiscal year 2001/2002
were presented:
- operating profit improved SEK 50 M to SEK 33 M and was SEK 142
M on a rolling 12-month basis
- operating margin rose to 6 percent and was also 6 percent on a
rolling 12-month basis
- order bookings increased 105 percent to SEK 703 M. On a
rolling 12-month basis, order bookings amounted to SEK 2,763
M, an increase of 48 percent.
- net sales were up 38 percent to SEK 544 M. Net sales on a
rolling 12-month basis amounted to SEK 2,310 M, up 26 percent.
- equity/assets ratio was strengthened to 52 percent.
Shareholders' equity at July 31, 2001 increased to SEK 1,158 M
due, among other factors, to the positive earnings, the
Swedish Financial Accounting Standards Council's new
accounting principle for taxes, which has an equity effect of
SEK 209 M as of April 30, 2001, and conversion of debenture
loans totaling SEK 229 M.
New bank and finance market relations have been established, A
combination of banks, insurance companies and other financial
institutions provide greater flexibility, lower pledged collateral,
broader range of financial services and lower costs. This supports and
secures the financing needs of operations.
Elekta is now prioritizing profitable growth.
Elekta's financial goals for the period 2001-2004:
- sales growth of 10-15 percent
- return on capital employed exceeding 15 percent
- operating margin of 6-8 percent
- equity/assets ratio of 40 percent.
During fiscal year 2001/2002, the priorities are:
- strengthening market positions in the US, particularly within
oncology.
- increasing market penetration in neurosurgical products in
Europe.
- building up sales and service in China and Japan.
- improving profitability within service.
- investing long term in R&D.
In concluding, the Chief Executive presented the following future prospects. Despite the prevailing political and economic uncertainty in the world, the assessment remains that net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for fiscal year 2001/02 as a whole are expected to be substantially better than in 2000/01. Net sales during the second quarter are expected to be on a level with the first quarter. Investments in research and development and the strengthening of the marketing and service organization, particularly in the US and Asia, will continue. The Chief Executive also commented that, taking into account the strong order bookings in the first quarter and the Group's good order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. , there were favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. prospects that the Group would be able to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. its sales growth and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: goals as early as the current fiscal year. At the same time it was noted that variations in sales and operating Thereafter, the Meeting approved the year-end financial statements and discharged the members of the Board and the President from liability for the fiscal year. The Meeting resolved that no dividend would be paid to the shareholders. The lack of unrestricted shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. in the Group does not permit a dividend or repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of shares at this time. The Board was re-elected, with the following members: Akbar Seddigh, Laurent Leksell, Carl Palmstierna and Magnus Schmidt. Tommy H Karlsson was elected a new member of the Board. Born in 1946, Tommy Karlsson Tommy Karlsson (born June 15, 1984 in Karlstad). Personal life Tommy Karlsson was born in Sweden and raised by father Leif and mother Birgitta. He has one older brother, Björn-Erik Karlsson. has served as an Executive Vice President at SKF SKF Svenska Kullagerfabriken SKF Svenska Klätterförbundet (Sweden) SKF Smithsonian Kite Festival SKF San Antonio Kelly Field Annex (Lackland AFB, Texas) and is currently Board Chairman in a number of international companies. The Meeting also approved the decision to float a debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. loan in a nominal amount of not more than SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 100,000 through issuing debentures linked to not more than 900,000 detachable warrants Detachable warrant A warrant entitles the holder to buy a given number of shares of stock at a stipulated price. A detachable warrant is one that may be sold separately from the package it may have originally been issued with (usually a bond). for subscription of new Series B shares in the Company without preferential pref·er·en·tial adj. 1. Of, relating to, or giving advantage or preference: preferential treatment. 2. rights to the shareholders. Subscription entitlement An individual's right to receive a value or benefit provided by law. Commonly recognized entitlements are benefits, such as those provided by Social Security or Workers' Compensation. is assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to the wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Elekta Instrument AB, with the aim that after subscription this company will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to detach de·tach v. 1. To separate or unfasten; disconnect. 2. To remove from association or union with something. the warrants and transfer them to managers and specialists currently employed and managers employed later within the Elekta Group and foreign subsidiaries within the Elekta Group, for subsequent transfer to managers currently employed or employed later outside Sweden. The transfer of warrants to employees outside Sweden can serve to fulfill obligations in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with a stock option plan adopted by the Board of Directors. The debenture in a nominal amount of SEK 100,000, linked to 900,000 warrants for subscription of 900,000 new Series B shares, shall be issued at a price corresponding to the value of the warrant, calculated in accordance with the Black & Scholes model, based on the share price in accordance with the statements made below about the subscription price, with the addition of SEK 100,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the nominal amount of the debenture. The share price at which the new subscription for Series B shares can occur shall correspond to a sum amounting to 225% at subscription of the shares during the period from and including January 1, 2002 to and including September 30, 2003, and 175% at subscription of shares during the period from and including October 1, 2003 to and including September 30, 2004, of the average last paid price quoted for the shares in the Company on the official list of the Stockholm Exchange on each trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. during the period from and including October 8, 2001 to and including October 19, 2001. Days on which prices are not quoted shall not be included in the calculation. The subscription price calculated as above shall be rounded off to the nearest whole number, whereby SEK 0.50 shall be rounded downward. Subscription of Series B shares through exercise of the warrants, whereby one (1) warrant carries the right to subscribe for one (1) share, can be carried out during the period from and including January 1, 2002 to and including September 30, 2004. Normal adjustment terms, etc. apply for the issue. The purpose is to promote the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. financial development of the Elekta Group through providing the Group's current and future employees a well-conceived incentive program which gives them the opportunity to participate in the a positive further development of the Company and to increase employee involvement in the Elekta Group. Some 87 percent of the Company's employees work outside Sweden. Documentation provided at the Meeting can be requested from Corporate Relations, telephone +46 8 587 254 00. Additional information on Elekta is available on the Internet: www.elekta.com |
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