Download - Presentation Q2 interim report 2019/2020
![Page 1: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/1.jpg)
Q2 report 2019/2020
Sectra Imaging IT Solutions’ order bookings exceed SEK 2 billion rolling 12
Presentation November 29, 2019Torbjörn Kronander, CEO and President Sectra ABMats Franzén, CFO Sectra AB
![Page 2: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/2.jpg)
Highlights and trendsTorbjörn Kronander, CEO and President
![Page 3: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/3.jpg)
15.1
0
5
10
15
20
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
17/18 18/19 19/20
%
49.7
0
25
50
75
100
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
17/18 18/19 19/20
%
37.30
50
100
150
200
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
17/18 18/19 19/20
%
1. StabilityEquity/Assets ratio
Financial targets for the Group
2. ProfitabilityOperating margin
3. GrowthEBIT/share growth over a 5-year period
Target >30% Target >50%
Priority
Target >15%
![Page 4: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/4.jpg)
Growth target is not fulfilled, why and what happens now?
Many new customers and large long-term projects requires investments
Will gradually shift to increased revenue and margin during second half of 19/20
We keep the goal as is and goals should be met
37,30
50
100
150
200
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
17/18 18/19 19/20
%
GrowthEBIT/share growth over a 5-year period
![Page 5: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/5.jpg)
Order bookings for the Group
Record-high 18/19 order booking is in deployment phase
Historically large variation between quarters has increased further with some very large orders
![Page 6: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/6.jpg)
Local and multi-national presence
Direct sales in 19 countries» France (medical) and Finland (security) established 2015/2016 » Canada (medical) 2016/2017
Partner sales in select markets and business units
Customers in > 60 countries Sectra’s largest markets are:
» USA» Scandinavia» UK» Netherlands
![Page 7: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/7.jpg)
Secure Communications
![Page 8: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/8.jpg)
Latest version Sectra Tiger/S approved by the Dutch national security agency for use up to and including the Geheim (SECRET) security level.
Quantum secure product receive national security approval
![Page 9: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/9.jpg)
Trend
Expanding secure mobile communications offering
Growth in critical infrastructure Growth initiatives:
— Critical infrastructure product area— Mobile secure ecosystems— New geographic areas,
active sales now also for CI in Finland and Norway
Sales and operating profitSecure Communications
0
30
60
90
120
150
180
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
17/18 18/19 19/20
SEK
mill
ion
![Page 10: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/10.jpg)
Part of our investment in products for highly secure mobile workplaces.Broadens portfolio with a world leading mobile VPN.Adds USA to the markets for Secure Communications.
Acquisition of Columbitech assets Q1
![Page 11: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/11.jpg)
Imaging IT Solutions
![Page 12: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/12.jpg)
Dutch hospitals chose Sectra
New orders from:» The University Medical
Center Groningen» Ziekenhuis Gelderse
Vallei» Maastricht University
Medical Center
![Page 13: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/13.jpg)
Large US customers chose Sectra
New orders from:» Grady Memorial Hospital» Marshfield Clinic Health
System
![Page 14: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/14.jpg)
Revenue trend in the US market
Trend in the US
Special focus area Recent orders from luminary
customers strengthen Sectra’s market position
Opportunities: The world’s largest market Sectra tops customer satisfaction Small, but growing, market share
![Page 15: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/15.jpg)
Trend in Imaging IT solutions
Adding new customers Extending and increasing
contracts with existing customers
Strengthened delivery capacity
Example of growth initiatives:- Focus US - Digital pathology & integrated diagnostics- Cardiology- New markets, direct and indirect
Sales and operating profit Imaging IT Solutions
0
300
600
900
1200
1500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
17/18 18/19 19/20
SEK
mill
ion
![Page 16: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/16.jpg)
Digital pathology @ Sectra
The next wave in digitization of hospitals
![Page 17: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/17.jpg)
Digital pathology @ Sectra
Status The last frontier in digitization
of medical images Large synergies with
Radiology Sweden is world leading in
digital pathology penetration Sectra has a dominant
market share in Sweden Nationwide telepathology
solution in the Netherlands Increasing sales in the UK
Growth strategy A single system for
Pathology, Radiology and Cardiology Imaging
Integrated diagnostics FDA application filed
![Page 18: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/18.jpg)
Application in combination with Leica Biosystem’s market leading and already-approved scanner.
Digital pathology application submitted to FDA
![Page 19: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/19.jpg)
Financial figuresMats Franzén, CFO
Slide 1030
![Page 20: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/20.jpg)
Trend in order bookings and net sales
Changes compared with the corresponding period the preceding fiscal year.
The Group12 month rolling
Order intake +4.3% Net sales +14.1%
- Adjusted for currency fluctuations up 11.3%
Weaker SEK- USD 7,6%- EUR 2,8%- GBP 2,6%
![Page 21: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/21.jpg)
Sales trend by geographic market– all areas are growing
Trend12 month rolling
By geographic market
Changes compared with the corresponding period the preceding fiscal year.
![Page 22: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/22.jpg)
Sales trend by business segment– all business segments are growing
Trend12 month rolling
By business segment
Changes compared with the corresponding period the preceding fiscal year.
![Page 23: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/23.jpg)
Operating earnings trend– investments in Imaging IT
By segment
Changes compared with the corresponding period the preceding fiscal year.
Trend for the Group
![Page 24: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/24.jpg)
Cash flow
Several large contracts signed 18/19 ties up considerable capital and resources during the installation phase
Starting in the second half year, the contracts will contribute to a solid future
Cash flow after changes in working capital
-50
0
50
100
150
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
17/18 18/19 19/20
SEK
mill
ion
![Page 25: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/25.jpg)
Sectra’s way forwardTorbjörn Kronander, CEO and President
![Page 26: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/26.jpg)
Sectra´s markets
Sectra is positioned in healthcare IT and cyber security –markets where society dynamics mandates growth
Growth is easier in growing markets
![Page 27: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/27.jpg)
#1 in customer satisfaction – 6 years straight
![Page 28: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/28.jpg)
Philosophy – Keep staff happy
![Page 29: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/29.jpg)
Philosophy - Shareholders
If you have Happy customers
Happy employees
Perseverance and reasonable cost control
A good position in growing markets
Then shareholders WILL be happy
![Page 30: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/30.jpg)
Being a shareholder in Sectra
![Page 31: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/31.jpg)
Why Sectra?
High customer satisfaction
High employee satisfaction
A strong brand in markets where trust is critical
Profitable, strong cash flow, and a solid balance sheet
Substantial and increasing recurring revenue
Positioned in niche markets with substantial underlying growth
Management owns shares
Sustainable investments in R&D with exciting future opportunities
![Page 32: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/32.jpg)
Upcoming AGM, financial report & CMD
March 4, 2020: Nine- interim report and presentation
June 3, 2020 Year-end reportand presentation
September 8, 2020 AGM in Linköping
![Page 33: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/33.jpg)
Your feedback is important!Please let us know what you think at www.sectra.com/irsurvey
![Page 34: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/34.jpg)
Questions?If you follow online, please use the email button or send questions to: [email protected]
![Page 35: Presentation Q2 interim report 2019/2020](https://reader031.vdocuments.us/reader031/viewer/2022020620/61e554f63880350608469791/html5/thumbnails/35.jpg)
Torbjörn Kronander, CEO and PresidentMats Franzen, CFO
Sectra AB Ph +46 13 23 52 00