Q4 2026 Elekta AB (publ) Earnings Call

May 28, 2026

Speaker #1: Hi, and good morning, everyone, and welcome to Elekta's conference call for the fourth quarter and the full year of 2025 and 2026. My name is Peter Nyquist, and I'm Head of Events Relations here at Elekta.

Peter Nyquist: Hi, good morning, everyone, welcome to Elekta's conference call for the Q4 and the full year of 2025 and 2026. My name is Peter Nyquist, I am Head of Investor Relations here at Elekta. With me here in the studio in Stockholm, I have our CEO, Jakob Just-Bomholt, I would also like to welcome our new CFO, Klara Eiritz, as she started now, I guess, three months ago as new CFO of Elekta. Very welcome. Great to have you here. Today's agenda, we will start up with Jakob giving some key takeaways from the Q4, including some strategic highlights. Klara will give us details on the financials and Elekta's outlook. After the presentation, we will have, as usual, a time for Q&A. Before I start, I want to remind you that some of the information discussed on this call contains forward-looking statements.

Speaker #1: With me here in the studio in Stockholm, I have our CEO, Jakob Justbomholt, and I would also like to welcome our new CFO, Klara Eiriks, as she started now, I guess, three months ago as the new CFO of Elekta.

Speaker #1: Very welcome, and great to have you here. Today's agenda starts off with Jakob giving some key takeaways from the fourth quarter, including some strategic highlights.

Speaker #1: Then Klara will give us details on the financials and Elekta's outlook. After the presentation, we will, as usual, have time for Q&A. But before I start, I want to remind you that some of the information discussed on this call contains forward-looking statements.

Speaker #1: This can include projections regarding revenue, operating result, cash flow, as well as products and product development. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements.

Peter Nyquist: This can include projections regarding revenue, operating results, cash flow, as well as products and product development. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. With that said, I would like to hand it over to you, Jakob. Please.

Speaker #1: With that said, I would like to hand it over to you, Jakob. Please.

Speaker #2: Thank you, Peter. A warm welcome to all of you. A warm welcome to you, Clara. Throughout the year, we have been very clear that at Elekta, we are not trading at our full potential.

Jakob Just-Bomholt: Thank you, Peter. A warm welcome to all of you. Warm welcome to you, Klara. Throughout the year, we have really been very clear on that Elekta, we are not trading at our full potential. We are a wonderful company, we are not at full potential. To address that, we have said we need to drive significant transformation within the company. The way we think about it is that we really have a transformation that will take place over three phases. The first one, reset and stabilize, the second, improve profitability, and the last one, most importantly and long term, innovation-driven growth. If we look at phase I would almost say we are done, and we are actually a little bit ahead of what I expected now 9 months ago.

Speaker #2: We are a wonderful company, but we are not at full potential. And to address that, we have said we need to drive significant transformation within the company.

Speaker #2: And the way we think about it is that we really have a transformation that will take place over three phases. The first one: reset and stabilize.

Speaker #2: The second: improve profitability. And the last one—and most importantly and long term—innovation-driven growth. If we look at phase one, I would almost say we are done.

Speaker #2: And we are actually a little bit ahead of what I expected now, nine months ago. We have been working a lot to reset our operating model, really with the view of ensuring that we have empowered, accountable teams. We increase our velocity in how we operate, how we execute, how we innovate.

Jakob Just-Bomholt: We have been working a lot to reset our operating model, really with the view of ensuring that we have empowered accountable teams. We increase our velocity in how we operate, how we execute, how we innovate. We have been going through a simplification of our org setup. Some of you may remember we have now executed having 9 organizational layers to 6. We have decentralized. We are pushing P&L profitability to our regions. As a consequence, we did a really zero-based review of the organization, and today we have more than 500 fewer colleagues within Elekta than we were 6 months ago. We have been working quite intensely on strengthening leadership. When you realize you are not at full potential, you have to look yourself in the mirror, and part of that is, at least in our view, to strengthen the leadership bench.

Speaker #2: We have been going through a simplification of our organizational setup. As some of you may remember, we have now reduced the number of organizational layers from nine to six.

Speaker #2: We have decentralized. We are pushing P&L profitability to our regions. As a consequence, we did a real zero-based review of the organization. Today, we have more than 500 fewer colleagues within Elekta than we did six months ago.

Speaker #2: Then, we have been working quite intensely on strengthening leadership. When you realize you're not at full potential, you have to look yourself in the mirror.

Speaker #2: And part of that is our view to strengthen the leadership bench. If you look at the executive committee, four out of six have been appointed within the last 12 months.

Jakob Just-Bomholt: If you look at the executive committee, four out of six have been appointed within the last 12 months. We have seen eight out of 17 members in the executive management being new, and I feel good about where we are. We are working on culture. We have many strongholds, but we also have things we want to change, more customer centricity, more performance management, more accountability. We are hardwiring that into incentives from the very top to further down and really linking incentive payouts with the value we create for our shareholders. Lastly, we have been very clear on we want to improve the quality of earnings. The way we look at it is it really takes outset in three distinct pillars. First, to reduce the delta between what we capitalize of R&D cost and what we amortize.

Speaker #2: We have seen eight out of seventeen members in the executive management team being new, and I feel good about where we are. We are working on culture.

Speaker #2: We have many strongholds, but we also think we want to change—more customer centricity, more performance management, more accountability. And then we are hardwiring that into incentives from the very top further down, and really linking incentive payouts with the value we create for our shareholders.

Speaker #2: And then lastly, we have been very clear that we want to improve the quality of earnings. The way we look at it is, it really takes, or is set in, three distinct pillars.

Speaker #2: First, to reduce the delta between what we capitalize of R&D cost and what we amortize. I'm happy to say this quarter we actually delivered on that, so that's good.

Jakob Just-Bomholt: I'm happy to say this quarter we actually deliver on that, so it's good, and we expect that also to happen going forward. With the plan of having you in, Klara, we said when you want to have quality of earnings, you'd also need a quality balance sheet, and we have been going through it in great detail. We are today announcing an impairment related to certain discontinued business activities, but certainly also other things, and you'll share the details. It's non-cash items, and we don't expect that to happen going forward. Lastly, you may recall in Q2, we did another impairment of our order backlog. I was also very clear on that's it. When you make such a statement, you have to be very clear on that you take in quality orders going forward.

Speaker #2: And we expect that also to happen going forward. Then, with the plan of having you and Clara, we said when you want to have quality of earnings, you also need a quality balance sheet.

Speaker #2: And we have been going through it in great detail. Today, we are announcing an impairment related to certain discontinued business activities, but certainly also other things.

Speaker #2: And, as you'll see, the details are non-cash items, and we don't expect that to happen going forward. And then lastly, you may recall, in Q2 we did another impairment of our order backlog.

Speaker #2: And I was also very clear on that. That’s it. And when you make such a statement, you have to be very clear that you are taking in quality orders going forward.

Speaker #2: So we have been, I would say, prudent in what we call in as orders. You shouldn't really leave the year with a book-to-bill of 1.04.

Jakob Just-Bomholt: We have been, I would say, prudent in what we call in as orders. You shouldn't leave the year with a book-to-bill of 1.04. I actually feel good about it. It's a better indication of future revenue growth. You shouldn't read into it that it's a weakening of our underlying business fundamentals, but rather it's an initiative stemming from us desiring to improve quality of earnings. As I said, we are now done, give and take, with our reset and stabilize, and we move into improved profitability. Clearly this quarter, from our point of view was a step in the right direction. I look at EBT, and there we have a very substantial increase, 4.5%, give and take, versus same quarter last year. Actually, EBT is the highest in 7 years on the margin. It's good.

Speaker #2: I actually feel good about it. It's a better indication of future revenue growth. You shouldn't read into it as a weakening of our underlying business fundamentals, but rather as an initiative stemming from our desire to improve the quality of earnings.

Speaker #2: As I said, we are now done, give and take, with our reset and stabilize, and we move into improved profitability. Clearly, this quarter, from our point of view, was a step in the right direction.

Speaker #2: I look at EBITDA, and there we have a very, very substantial increase—four and a half percent, give or take—versus the same quarter last year.

Speaker #2: Actually, EBITDA is the highest in seven years on the margin, so it's good. As part of improved profitability, we have focused innovation that also links to some of the impairments.

Jakob Just-Bomholt: As part of improved profitability, we have focused innovation that also links to some of the impairments. We know what we need to innovate, we know what is important for our customers, and we'll unfold more of that at CMD in a couple of weeks. We are clearly working on strengthening the commercial execution. It also links to leadership, culture, and incentives. We spend a lot of time on pricing excellence. We do see cost of goods sold increasing from tungsten to microchips to logistics, and it's important that we have a very strengthened structure to pass on those cost increases to our customers, and we expect to do so. We have programs on OpEx and COGS. Specifically for OpEx, I'll come back to it.

Speaker #2: We know what we need to innovate. We know what is important for our customers, and we'll unfold more of that at CMD in a couple of weeks.

Speaker #2: We are clearly working on strengthening our commercial execution. This also links to leadership, culture, and incentives. We spend a lot of time on pricing excellence.

Speaker #2: We do see cost of goods sold increasing, from tungsten to microchips to logistics. And it's important that we have a very strengthened structure to pass on those cost increases to our customers.

Speaker #2: And we expect to do so. And then we have programs on OPEX and COX. And specifically for OPEX, I'll come back to it. It's fair to say that the OPEX savings have exceeded our expectations significantly.

Jakob Just-Bomholt: It's fair to say that the OpEx savings have exceeded our expectations significantly, and we have a very significant part of that in Q4, so we can be happy about that. Lastly, we have ongoing work on simplifying and standardizing our processes. At the very end, I hope we can conclude improved profitability within this year, maybe part of next year, but the future of Elekta is really to drive growth through innovations, and we'll continue to invest. We just come out of ESTRO. It confirms that radiotherapy is highly relevant. It's clinically efficient. It's cost efficient. We can become more precise. We can adapt more. We'll continue to invest in our roadmaps, and we think customers are absolutely willing to pay for that. We look forward to sharing more when we meet in a couple of weeks.

Speaker #2: And we have a very significant part of that in Q4, so we can be happy about that. And lastly, we have ongoing work on simplifying and standardizing our processes.

Speaker #2: Then, at the very end, I hope we can conclude improved profitability—within this year, maybe part of next year. But the future of Elekta is really to drive growth through innovations.

Speaker #2: And we'll continue to invest. We just came out of ASTRO. It confirms that radiotherapy is highly relevant, it's clinically efficient, it's cost-efficient, and we can become more precise.

Speaker #2: We can adapt more, so we'll continue to invest in our roadmaps. And we think customers are absolutely willing to pay for that. We look forward to sharing more when we meet in a couple of weeks.

Speaker #2: But if I then turn to the full year—as I said, book-to-bill of 1.04. We did see, and we were a little bit negatively surprised, in the Middle East.

Jakob Just-Bomholt: If I turn into the full year. As I said, book-to-bill of 1.04. We did see, we were a little bit negatively surprised in the Middle East. We did see specific customers delaying decision, most importantly, we have just implemented firmer order acceptance criteria throughout Elekta to ensure that the order backlog we have now is of very good quality and is indicative of future revenue growth. In the US specifically, we have seen on our CT-Linac portfolio double-digit growth. We expect that to accelerate the link to Evo also this fiscal year. We are on plan. We are positive. On organic growth, 1% linked to Europe, actually also our TMEA region, our Middle East, Africa, India region. On gross margin, we did see an uptick despite FX and tariff headwind. Now at 38.4%, it's still too low.

Speaker #2: We did see specific customers delaying decisions. But most importantly, we have just implemented firmer order acceptance criteria throughout Elekta, to ensure that the order backlog we have now is of very good quality, as it is.

Speaker #2: And is indicative of future revenue growth. In the US specifically, we have seen, on our CT-Linac portfolio, double-digit growth. We expect that to accelerate, linked to EVO, also this fiscal year.

Speaker #2: So we are on plan. We are positive. On organic growth, 1%, linked to Europe but actually also our team, region—our Middle East, Africa, India region.

Speaker #2: On gross margin, we did see an uptick despite the FX and tariff headwind, now at 38.4%. It's still too low—we need to be above.

Jakob Just-Bomholt: We need to be above. On EBIT margin, 12.3%. We clearly see that a lot of the work in becoming more efficient is really starting to have impact. Keep in mind, this quarter, we did have headwind from capitalizing less and amortizing more. If you look at the underlying EBT, it was an improvement from 8.6% to 11.2%. That translated directly into cash flow. The cash flow almost at SEK 1.4 billion, despite paying out SEK 300 million in severance payments. We saw for the first time in five years a reduction in net debt, which we are very happy about. That also allows us to sustain the dividends. The board approved yesterday dividend payments of SEK 2.4 per share, unchanged from prior years. If we look then on the next slide, specific key takeaways.

Speaker #2: And on EBIT margin, 12.3%. We clearly see that a lot of the work in becoming more efficient is really starting to have impact. Keep in mind, this quarter we did have a headwind from capitalizing less and amortizing more.

Speaker #2: So if you look at the underlying EBITCA, it was an improvement from 8.6% to 11.2%. And that translated directly into cash flow. So the cash flow was almost SEK 1.4 billion.

Speaker #2: Despite paying out $300 million in severance payments, we saw, for the first time in five years, a reduction in net debt, which we are very happy about.

Speaker #2: And that also allows us to sustain the dividends. So the Board approved yesterday dividend payments of SEK 2.46 per share, unchanged from prior years. If we look then on the next slide, specific key takeaways.

Speaker #2: As I said on the book-to-bill, we did see lower in the Middle East and Africa. That's really where it stemmed from, and also a bit in India.

Jakob Just-Bomholt: As I said on the book-to-bill, we did see lower Middle East, Africa. That's really where it stemmed from. Also a bit of India, but we were very clear on also saying no to a lot of orders last minute because we felt the criteria was not truly fulfilled, and we feel very good about that. Net sales decreased 1%, was really driven a bit of Asia Pacific. Actually, we had some delayed project installation, understandably so, in the Middle East, Africa. I believe I also mentioned that at our last call. Had we not had those specific delays related to a very turbulent world in the Middle East, we would have had a positive organic growth in line with previous quarters, give and take. We will come back on the impairment of capitalized R&D and discontinued products, so I'll leave that for you.

Speaker #2: But we were very clear on also saying no to a lot of orders at the last minute because we felt the criteria were not truly fulfilled.

Speaker #2: And we feel very good about that. Net sales decreased 1%. It was really driven a bit by Asia Pacific. Actually, we had some delayed project installations, understandably so, in the Middle East and Africa.

Speaker #2: I believe I also mentioned that on our last call. And had we not had those specific delays related to a very turbulent situation in the Middle East, we would have had positive organic growth.

Speaker #2: In line with previous quarters' give and take. Then we will come back to the impairment of capitalized R&D and discontinued products, so I'll leave that for you.

Speaker #2: Gross margin was the highest of the year. A little bit, not slower than last year. But we actually exceeded our expectations, and keep in mind we had an FX headwind and also a bit of bill of material headwind.

Jakob Just-Bomholt: Gross margin, highest of the year, little bit not slower than last year, but we actually exceeded our expectations. Keep in mind, we have a FX headwind and also a bit of bill of material headwind. We managed to compensate through a price increase. On the EBIT margin, we are at 18.9%, and that really links to lower OpEx and lower service costs. A lot of the things we have been working on is now materializing into EBIT margin. This quarter, EBIT margin equals give and take the EBITC margin. Lastly, on cash flow, we saw a little bit lower cash flow in the quarter, but as I said, what really counts is the full year, and we are very happy to see that our net debt is coming down. On the commercial side, if we look at Americas, 1% growth.

Speaker #2: But we managed to compensate through a price increase. On the EBIT margin, we are at 18.9%, and that really links to lower OPEX and lower service costs.

Speaker #2: So, a lot of the things we have been working on are now materializing into EBIT margin. And this quarter, EBIT margin equals, give or take, the EBITDA margin.

Speaker #2: And then lastly, on cash flow, we saw a little bit lower cash flow in the quarter. But as I said, what really counts is the full year.

Speaker #2: And we are very happy to see that our net debt is coming down. On the commercial side, if we look at Americas, 1% growth. EVO launch continues as planned.

Jakob Just-Bomholt: Evo launch continues as planned. We are positive about it, but more importantly, so are our customers. On APAC, we did see a decrease of 3%. We have seen a little bit of lower growth in some specific Asian markets. Conversely, we see that the recovery in China that we talked about did actually materialize. On orders and revenue, we had 6%, 7% growth in the quarter. We have had H2 growth, and the outlook is positive going forward. Lastly on EMEA, the momentum is still there. We have product launches. It is really Elekta Evo that is more than two-thirds of our solution sale. That momentum continues. As I said, Middle East, Africa, we have just seen a pause, understandably so in the quarter.

Speaker #2: We are positive about it. But more importantly, so are our customers. On APAC, we did see a decrease of 3%. We have seen a little bit of lower growth in some specific Asian markets.

Speaker #2: And then conversely, we see that the recovery in China that we talked about did actually materialize. So, on orders and revenue, we had 6–7% growth in the quarter.

Speaker #2: And we have had second-half growth, and the outlook is positive going forward. Lastly, on EMEA, the momentum is still there. We have product launches.

Speaker #2: It's really Elekta EVO that is more than two-thirds of our solution sales, so that momentum continues. And then, as I said, Middle East, Africa, we have just seen a pause, understandably.

Speaker #2: So, in the quarter. But the good thing is I met here at ESRA a lot of both customers and resellers, and they are positive.

Jakob Just-Bomholt: The good thing is I met here at ESTRO, a lot of both customers and resellers, and they're positive. Unfortunately, people still get cancer, and radiotherapy is cost efficient. I'm actually very impressed about the resilience, and we don't see this being a structural issue in the years ahead. If we look at our strategy progression, and if I just give a very brief helicopter perspective on the first one, I think we're doing well. I'm happy with what I see, and we are ahead of plan. Focused innovation, we'll unveil that, but we are taking a number of decisions, and we know what we need to innovate. We have the plans in place, and we'll share that on CMD. There will be a strong systemic demand for what we will offer in the years to come.

Speaker #2: Unfortunately, people still get cancer, and radiotherapy is cost-efficient. So I'm actually very impressed by the resilience. We don't see this being a structural issue in the years ahead.

Speaker #2: If we look at our strategy progression, and if I just give a very brief, helicopter perspective on the first one, I think we’re doing well.

Speaker #2: I'm happy with what I see, and we are ahead of plan. Focused innovation will unveil that, but we are taking a number of decisions.

Speaker #2: And we know what we need to innovate. We have the plans in place, and we'll share that on CMD. There will be a strong, systemic demand for what we will offer in the years to come.

Speaker #2: Expanding in China, give and take, when we look at it, we are at 39 to 40% market share—about 40%. It's a bit higher when it comes to value.

Jakob Just-Bomholt: Expand in China, give and take, when we look at it, we are at 40% market share, 39% to 40%. A bit higher when it comes to value, so it's clearly a position we want to defend, and we are ready to compete. In the US, we are really on the hunt for more market share, and the portfolio is shaping up. We expect also high double-digit growth on orders this fiscal year, then by the end of H1, it will start to materialize in revenue. On continued COGS reduction, here we are challenged a little bit because we have input factors hitting us. We really have two tracks. One is the price excellence I outlined, that is just going to be a muscle. I'll also personally stimulate within the company because we need to see CPI plus increases coming out through the system.

Speaker #2: So, it's clearly a position we want to defend, and we are ready to compete. In the US, we are really on the hunt for more market share.

Speaker #2: And the portfolio is shaping up, so we expect also high double-digit growth on orders this fiscal year. Then by the end of the first half, it will start to materialize in revenue.

Speaker #2: On continued COGS reduction, here we are challenged a little bit because we have input factors hitting us. So we really have two tracks. One is price excellence.

Speaker #2: I outlined that this is just going to be a muscle. I'll also personally stimulate within the company, because we need to see CPI-plus increases coming out through the system.

Speaker #2: And then we run a lot of COGS cost reductions throughout the company. And we will announce a new COO starting in the company on the first of August.

Jakob Just-Bomholt: We run a lot of COGS cost reductions throughout the company, and we will announce a new COO starting in the company 1 August. Let me close here by saying on the operating model the split between COGS and OpEx is maintained. We have no reason to believe otherwise. Its significant impact in earnings Q4. It significantly exceeds what we guided at SEK 6,500. The restructuring charge is a notch below what we expected at SEK 421. As you see, the last point, the workforce is reduced by more than 500 employees, and that has translated into the savings. As I said, the real core of the operating model is to innovate faster, to execute faster, and to get closer to our customers. With that, I am going to close.

Speaker #2: So let me close here by saying that, on the operating model, the split between COGS and OPEX is maintained. We have no reason to believe otherwise.

Speaker #2: It's a significant impact in earnings in Q4. It significantly exceeds what we guided at 6,500. The restructuring charge is a notch below what we expected, at 421.

Speaker #2: And as you see, the last point—the workforce is reduced by more than 500 employees. And that has translated into the savings. But as I said, the real core of the operating model is to innovate faster, to execute faster, to get closer to our customers.

Speaker #2: So, with that, I'm going to close.

Speaker #1: All right. So, hello everybody. Clara Edits here, new CFO of Elekta, started on the 1st of March. So I will speak a little bit about the financials then.

Klara Eiritz: All right. Hello, everybody. Klara Eiritz here, new CFO of Elekta, started the 1st of March. I will speak a little bit about the financials then, and starting with the full year. Jakob has mentioned some of this, so some repetition, but we'll do it this way. Adjusted for currency effects, net sales increased by 1%, and the growth was driven by the EMEA region and recent product launches, especially in Europe then with Evo and Elekta ONE, as well as also service growth and price increases, also mainly for Europe. Adjusted gross margin was up a little bit year-over-year, driven primarily by these price increases for Europe. Partly or that offset then the negative currency effects and tariff costs year-over-year.

Speaker #1: And starting with the full year—Jacob has mentioned some of this, so there will be some repetition, but we'll do it this way—adjusted for currency effects, net sales increased by 1%.

Speaker #1: And the growth was driven by the EMEA region and recent product launches, especially in Europe, with EVO and Elekta One. There was also service growth and price increases, mainly for Europe.

Speaker #1: Adjusted gross margin was up a little bit year over year, driven primarily by these price increases for Europe. However, that was partly offset by the negative currency effects.

Speaker #1: And tariff costs year over year. Adjusted EBIT landed at 12.3% for the year, driven by said price increases and lower OPEX, of course, due to the implementation of the new operating model, which allows us to run the company at a lower cost level.

Klara Eiritz: Adjusted EBIT landed at 12.3% for the year, driven by said price increases and lower OpEx, of course then, due to the implementation of the new operating model, which allows us to run the company on a lower cost level. Adjusted EBITC margin improved as well, but the improvement was a bit less than for the EBIT margin due to lower capitalization and higher amortization. Let's look at the Q4 in isolation. Sorry for this. Okay. I'll just continue talking and see if we can get the numbers up. Adjusted for currency, net sales declined 1%. Business momentum continued in Europe and sales also increased in Americas. However, this was fully offset by lower sales in Asia Pacific due to the Japanese market slowing down. Despite growth in China, during the Q4, Asia Pacific sales dropped by 3% in constant exchange rates.

Speaker #1: Adjusted EBITA margin improved as well, but the improvement was a bit less than for the EBIT margin, due to lower capitalization and higher amortization.

Speaker #1: Then let's look at the fourth quarter in isolation. Sorry for this. Okay, I'll just continue talking and see if we can get the numbers up.

Speaker #1: So, adjusted for currency, net sales declined 1%. Business momentum continued in Europe, and sales also increased in the Americas. However, this was fully offset by lower sales in APAC.

Speaker #1: Due to the Japanese market slowing down, despite growth in China during the fourth quarter, APAC sales dropped by 3% at constant exchange rates.

Speaker #1: And due to the ongoing conflict in Iran, sales in the Middle East were down a little bit also. This hampered the total growth numbers for EMEA.

Klara Eiritz: Due to the ongoing conflict in Iran, sales in the Middle East were down a little bit also, and this hampered the total growth numbers for EMEA compared to last year then, despite the continued momentum that we see in Europe. In constant exchange rates solutions decreased sales by 2%, while service sales were unchanged compared to last year. Maybe I'll stop there before we move on. Should I continue, Peter?

Speaker #1: Compared to last year then, despite the continued momentum that we see in Europe, and in constant exchange rates, Solutions decreased sales by 2%, while Services sales were unchanged compared to last year.

Speaker #1: Maybe I'll stop there before we move on. Or should I continue, Peter?

Speaker #2: We have some problems here with it.

Peter Nyquist: We have some problems here with the slideshow.

Speaker #1: But can the listeners hear?

Klara Eiritz: Can the listeners hear?

Speaker #2: Yes.

Peter Nyquist: Yes.

Speaker #1: See the "yes"? Okay. All right. Then yes, the book-to-bill ratio was 0.96 in the fourth quarter, for reasons mentioned by Jacob here at the beginning of the call.

Klara Eiritz: Yes? Okay. All right. Yes, the book-to-bill ratio was 0.96 in Q4, for reasons mentioned by Jakob here in the beginning of the call. Also for the full year, the book-to-bill ratio was 1.04 then. Gross order intake in Q4 decreased by 15% in constant exchange rates. Gross order intake in Q4 decreased by 15% for the reasons that Jakob mentioned. A decline in the Middle East, but also stricter policy for order intake recognition at Elekta. While these measures temporarily, of course, affected the book-to-bill ratio, they also reflect a more disciplined strategy focused on improving our order quality without impacting our growth ambitions, of course, going forward. In Q4, adjusted gross income was SEK 1.9 billion, representing an adjusted gross margin of 39.9%.

Speaker #1: And also, for the full year, the book-to-bill ratio was 1.04. Gross order intake in the fourth quarter decreased by 15% in constant exchange rates.

Speaker #1: And this decrease is—sorry, gross order intake in the fourth quarter decreased by 15%, for the reasons that Jacob mentioned: a decline in the Middle East, but also stricter policy for order intake recognition at Elekta.

Speaker #1: So while these measures temporarily, of course, affected the book-to-bill ratio, they also reflect a more disciplined strategy focused on improving our order quality without impacting our growth ambitions, of course, going forward.

Speaker #1: So, in the fourth quarter, adjusted gross income was $1.9 billion, representing an adjusted gross margin of 39.9%. This was a slight decrease, mainly driven by changes in foreign exchange rates.

Klara Eiritz: A slight decrease, mainly driven by changes to foreign exchange rates, while we saw improvements from price and product mix that contributed positively in the quarter. Tariff costs and strengthening of the Swedish krona against major currencies had a negative impact corresponding to a total amount of around SEK 200 million. Maybe also worth mentioning is that last year was favorably impacted by unusually strong software sales. That's something to keep in mind also when looking at the year-over-year comparison. Adjusted EBIT came in at SEK 902 million, representing a margin of 18.9%. The higher adjusted EBIT margin derived mainly from a lower cost base due to changes to the operating model, as well as also lower R&D spend. What I mentioned in the beginning with, of course, price increases and all those things, they trickle down to the bottom line, of course.

Speaker #1: While we saw improvements from price and product mix that contributed positively in the quarter, there were also tariff costs and strengthening of the Swedish krona against major currencies.

Speaker #1: Had a negative impact corresponding to a total amount of around SEK 200 million. And maybe also worth mentioning is that last year was favorably impacted by unusually strong software sales.

Speaker #1: So, that's something to keep in mind also when looking at the year-over-year comparison. Adjusted EBIT came in at SEK 902 million, representing a margin of 18.9%.

Speaker #1: The higher adjusted EBIT margin derived mainly from a lower cost base, due to changes to the operating model, as well as lower R&D spend.

Speaker #1: And then, what I mentioned in the beginning—with, of course, price increases and all those things—they trickle down to the bottom line, of course.

Speaker #1: But we also see somewhat higher amortization and lower capitalization that offset some of those positive effects. Reported EBIT amounted to minus SEK 461 million, representing a margin of minus 9.7%.

Klara Eiritz: We also see a somewhat higher amortization and lower capitalization that offset some of those positive effects then. Reported EBIT amounted to -SEK 461 million, representing a margin of -9.7%. The reason for the negative reported EBIT was the IAC, or the item affecting comparability, of SEK 1.4 billion that we booked now in Q4. Gross margin was impacted by items affecting comparability corresponding to about SEK 19 million. Most of the IAC can be found in OpEx and other operating income and expense. Right. We can go to the next one. Yes. Before we get into more details around the one-off items, a few words on currency then. FX had a negative impact on revenue of about -7%, mainly driven by the stronger SEK versus main revenue currencies, US dollar and euro.

Speaker #1: And the reason for the negative reported EBIT was the IAC, or the item affecting comparability, of SEK 1.4 billion that we booked now in the fourth quarter.

Speaker #1: Gross margin was impacted by items affecting comparability corresponding to about SEK 19 million. So most of the IAC can be found in OPEX and other operating income and expense.

Speaker #1: Right. Then we can go to the next one. Yes. But before we get into more details around the one-off items, a few words on currency, then.

Speaker #1: FX had a negative impact on revenue of about minus 7%, mainly driven by the stronger SEK versus the main revenue currencies, US dollar and euro.

Speaker #1: The effect on COGS and OPEX, on the other hand, was favorable, as the stronger SEK versus main cost currencies impacted the cost base favorably.

Klara Eiritz: The effect on COGS and OpEx, on the other hand, was favorable as the stronger SEK versus main cost currencies impacted the cost base favorably. We have some positive currency effects between gross margin and EBIT also deriving from realized and unrealized currency effects on the balance sheet. If we move to the next slide and we talk a little bit about the one-off item of SEK 1.4 billion. This amount is a combination of impairment of previously capitalized R&D costs and goodwill, as well as provisions for other balance sheet items, mainly trade receivables. If we start with the trade receivables part here we have done some provisions for specific projects, but it's mainly an update of the general model for expected credit losses. We're essentially adapting a bit more of a prudent approach to receivables that are long overdue.

Speaker #1: And then we have some positive currency effects between gross margin and EBIT, also deriving from realized and unrealized currency effects on the balance sheet.

Speaker #1: Then, if we move to the next slide and talk a little bit about the one-off item of SEK 1.4 billion, this amount is a combination of impairment of previously capitalized R&D costs and goodwill.

Speaker #1: As well as provisions for other balance sheet items, mainly trade receivables. If we start with the trade receivables part here, we have made some provisions for specific projects, but it's mainly an update of the general model for expected credit losses.

Speaker #1: We're essentially adopting a more prudent approach to receivables that are long overdue. In the balance sheet, we can see that these provisions have eroded over time, and we want to restore them back to more normal levels.

Klara Eiritz: In the balance sheet, we could see that these provisions have eroded over time. We want to restore them back to more normal levels. The R&D impairment in Q4 is related to products that are no longer part of the strategic roadmap and that will not be launched. We also have examples where we have similar development projects that are being combined into one. This means that we must give up some of the parallel development costs that are currently activated on the balance sheet. These decisions and the consequential impairments give us a balance sheet that is better aligned with current business assumptions and our strategy going forward. For competitive reasons, we will not disclose, of course, further details around which products, projects, or initiatives that we're talking about here.

Speaker #1: The R&D impairment in Q4 is related to products that are no longer part of the strategic roadmap, and they will not be launched. We also have examples where we have similar development projects that are being combined into one, and this means that we must give up some of the parallel development costs that are currently capitalized on the balance sheet.

Speaker #1: These decisions and the consequential impairments give us a balance sheet that is better aligned with current business assumptions and our strategy going forward. For competitive reasons, we will not disclose, of course, further details around which products, projects, or initiatives we're talking about here, but we can say that with these adjustments, we have a balance sheet that is well in line with our strategic ambitions and that will help us build our commercial success going forward.

Klara Eiritz: We can say that with these adjustments, we have a balance sheet that is well in line with our strategic ambitions, and that will help us build our commercial success going forward. The impairment of goodwill is related to the Kaiku business in Finland and the strategic decision to start to wind down that business. Can go to the next one. Cash flow after continuous investments amounted to Let's see. This is the full year. Sorry. Yes. Or sorry, for Q4, amounted to 1.1 billion SEK, including severance payments of approximately SEK 160 million in the quarter. The full year cash flow improved SEK 336 million to 1.4 billion SEK. The improvement year over year mainly is due to more favorable movements in working capital and lower investment levels. Let's say a few words about the dividend proposal related to the fiscal year of 2025, 2026.

Speaker #1: The impairment of goodwill is related to the Kaiku business in Finland and the strategic decision to start to wind down that business. Can we go to the next one?

Speaker #1: Cash flow after continuous investments amounted to 1.1 billion SEK for Q4, including severance payments of approximately 160 million SEK in the quarter. This is for the full year—sorry, yes, or sorry, for Q4.

Speaker #1: And the full-year cash flow improved by SEK 336 million to SEK 1.4 billion. The year-over-year improvement is mainly due to more favorable movements in working capital and lower investment levels.

Speaker #1: Then let's say a few words about the dividend proposal related to the year, the fiscal year of 2025/26. The Board's proposal to the AGM, in August or September—I can't remember—is an unchanged dividend of SEK 2.40 per share.

Klara Eiritz: The board proposal to the AGM in August or September, can't remember, is an unchanged dividend of SEK 2.4 per share. This would equal SEK 917 million split into installments as usual. That is the proposal to the AGM. Maybe on to a few comments on the EBITC margin. You can see those numbers in the gray boxes at the bottom here under the graph. For five consecutive quarters, we now see an improvement in the 12-month rolling EBITC margin, which is encouraging and something that we were focusing on when we assess the business. Great. A few final words then on the outlook for 2026, 2027. We expect sales in constant currency to increase year over year. With that, we also expect an improvement in the EBIT margin.

Speaker #1: This would equal SEK 917 million, split into installments as usual. So that is the proposal to the AGM. And then maybe onto a few comments on the EBIT-C margin.

Speaker #1: You can see those numbers in the gray boxes at the bottom here under the graph. And for five consecutive quarters, we now see an improvement in the 12-month rolling EBIT-C margin, which is encouraging and something that we were focusing on when we assessed the business.

Speaker #1: Great. And then a few final words on the outlook for 2026/27. We expect sales in constant currency to increase year over year, and with that, we also expect an improvement in the EBIT margin.

Speaker #1: And on our Capital Markets Day on June 17th, we will present more details related to midterm financial targets going forward. So, we will talk more then.

Klara Eiritz: On our Capital Markets Day on 17 June, we will present more details related to midterm financial targets going forward. We will talk more then. Thank you. I hand back to you, Jakob, to close off the call.

Speaker #1: Thank you. So, I'll hand back to you, Jacob, to close off the call.

Jakob Just-Bomholt: Yeah, I'll do it very brief. We do see both full year and Q4, as you outlined, Klara, strong improvement in profitability. We are happy about that. It translated into cash. Keep in mind, we said that we wanted EBIT to be closer correlated to cash generation. It's being delivered upon, a reduction in it. That's very important for us. We have done the balance sheet review. It will not impair our ability to grow and execute and deliver great products in the future. I personally would say short term, above all, we'll focus on improved profitability and create the foundation for innovation-driven growth. Very soon we will pivot towards pursue innovation-driven growth, and we will share that in greater details at the Capital Markets Day.

Speaker #3: I'll do it very briefly. So, we do see both for the full year and Q4, as you outlined, Clara, strong improvement in profitability. We are happy about that.

Speaker #3: It translated into cash. Keep in mind, we said that we wanted EBIT to be more closely correlated to cash generation being delivered upon reduction, and that is very important for us.

Speaker #3: We have done the balance sheet review. It will not grow and execute and deliver great products in the future. And I personally would say, short term, above all, we'll focus on improved profitability and create the foundation for innovation-driven growth, but very soon we will pivot towards pursuing innovation-driven growth.

Speaker #3: And we will share that in greater detail at the Capital Markets Day.

Speaker #2: Great, thanks Jacob. Thanks, Clara, for the presentation. So we're now open for the Q&A session. Operator, we can open the line up, please.

Peter Nyquist: Great. Thanks, Jakob. Thanks, Klara, for the presentation. We're now open for the Q&A session. Operator, we open that line now. Please. I think we have the first question from Hassan Al-Wakeel, Barclays.

Speaker #2: And I think we have the first question from Alvake Hassan. Alvake, Barclays.

Operator: Yes. Thank you. Just a reminder for questioners, if you wish to ask a question, you may press star and one. The first question comes from Hassan Al-Wakeel from Barclays. Please go ahead.

Speaker #4: Yes, thank you. Just a reminder for questioners: if you wish to ask a question, you may press * and 1. The first question comes from Hassan Alwakil from Barclays.

Speaker #4: Please go ahead.

Speaker #2: Good morning, Hassan.

Peter Nyquist: Good morning, Hassan.

Speaker #5: Good morning. Thank you. Good morning. Thank you for taking my question. A couple, please.

Hassan Al-Wakeel: Good morning. Thank you. Morning. Thank you for taking my question. A couple, please.

Speaker #2: Yes.

Jakob Just-Bomholt: Yes.

Speaker #5: Firstly, can you talk about the order intake you're seeing in the US and how cutting the conversations are progressing, particularly as it relates to changes in US reimbursement with level one to three reimbursement implemented earlier this year, and whether this is triggering lower revenues for centers and an elongation to replacement cycles?

Hassan Al-Wakeel: Firstly, can you talk about the order intake you're seeing in the US and how customer conversations are progressing, particularly as it relates to changes in US reinvestment, with level 1 to 3 reinvestment implemented earlier this year, and whether this is triggering lower revenues for centers and an elongation to replacement cycles? Secondly, on China, you talked previously about confidence of double-digit growth in H2, and beyond. Q4 looks to be slightly softer than that. What was different versus your expectations, and how do you consider the risk of new entrants in China impacting your ability to grow double digits, particularly given this is a market that isn't expected to contribute to growth for many other med tech companies? Thank you.

Speaker #5: And then secondly, on China, you've talked previously about confidence in double-digit growth in H2 and beyond. Q4 looks to be slightly softer than that.

Speaker #5: What was different versus your expectations? And how do you consider the risk of new entrants in China impacting your ability to grow double-digit, particularly given this is a market that isn't expected to contribute to growth for many other medtech companies?

Speaker #5: Thank you.

Speaker #2: Yeah. Maybe I'll start with China, then get into the order intake and the US specifically. So, on China, that's absolutely right. On revenue, we came in at 6%, orders 7% here in Q4.

Jakob Just-Bomholt: Yeah. Maybe I'll start China, then I get into the order intake and US specifically. In China, it's absolutely right. On revenue, we came at 6% orders, 7% here in Q4. That was slightly lower than double digit. It was one missed installation. Sometimes we operate at these margins. I do think we saw what we outlined, back to growth H2, so that's important. The market recovering, that's important. Strong market share, and we also expect to grow in this fiscal year. Specifically on new entrants, absolutely, yeah. We don't want to name them, you know them. We see a host of smaller having struggling to really get a foothold, and then we have one larger. We compete, and I actually consider China being a good lab for strengthening the competitiveness of Elekta, because when we compete in China, we can also compete elsewhere.

Speaker #2: So, there was slightly lower than double-digit. It was one missed installation. So, sometimes we operate at these margins. I do think we saw what we outlined back to growth in the second half.

Speaker #2: So that's important. The market recovering—that's important. Strong market share. And we also expect to grow in this fiscal year. Specifically on new entrants, absolutely, Sarah.

Speaker #2: I mean, we don't want to name them. You know them. We see a host of smaller players struggling to really get a foothold. And then we have one larger, but we compete.

Speaker #2: And I actually consider China to be a good lab for strengthening the competitiveness of Elekta, because when we compete in China, we can also compete elsewhere.

Speaker #2: As I outlined, when we look at units, we assess that last fiscal year we roughly had between 39% and 40% market share. If I then turn to the US, first on reimbursement—there's actually a reimbursement crisis within radiotherapy.

Jakob Just-Bomholt: I outlined, when we look at units, we assess that last fiscal, we roughly have between 39% and 40% market share. If I then turn on to US first on reimbursement, there's actually a reimbursement crisis within radiotherapy. We see a lot of independent clinics struggling. It's less an issue for us, I would say, first because we have not had our full share. Secondly also because we worked a lot towards adapting the treatments, and there, the reimbursement environment is actually much more favorable. You're well compensated when you do replans instead of one treatment with the same dose for 30 fractions. All in all, a challenge in the US, but specifically for Elekta, we actually feel it serves us well. Does it then extend the buying cycle time? Yeah, maybe it does a little bit.

Speaker #2: We see a lot of independent clinics struggling. It's less of an issue for us, I would say, first, because we have not had our full share.

Speaker #2: And secondly, also because we worked a lot towards adapting the treatments, and there the reimbursement environment is actually much more favorable. So you're well compensated when you do replans instead of one treatment with the same dose for 30 fractions.

Speaker #2: So, all in all, challenging in the US, but specifically for Elekta, we actually feel it serves us well. Does it then extend the buying cycle time?

Speaker #2: Yeah, maybe it does a little bit. But given where we are, we are less focused on what's happening in the market, and more focused on actually selling to existing and new customers, and getting back to our fair market share.

Jakob Just-Bomholt: Given where we are, we are less focused on what's happening in the market, but more focused on actually selling to existing and new customers and get back to our fair market share.

Speaker #5: Thanks, Jacob.

Hassan Al-Wakeel: Thanks, Jakob.

Hassan Al-Wakeel: Very helpful. Thank you.

Speaker #3: Very helpful.

Speaker #2: Thank you.

Speaker #5: Thanks, Hassan. We'll move to the next question, and that's from Mattias Wahlsten at SEB. Good morning, Mattias.

Peter Nyquist: Thanks, Hassan Al-Wakeel. We'll move to next question. That's from Mattias Vadsten at SEB. Good morning, Mattias.

Speaker #6: Good morning. Can you hear me?

Mattias Vadsten: Good morning. Can you hear me?

Speaker #2: Yes.

Peter Nyquist: Yes. Perfect.

Speaker #5: Perfect.

Mattias Vadsten: Good. Thanks for taking my questions. I have two. The first one, continuing on APAC, it was a bit surprising to me where it decreased in Q4. You're heading in the right direction in Q3, I thought. If you can maybe comment on Japan, because you outlined that quite clearly, and I guess, I don't know if Japan is around 15% of APAC, so it must be a quite steep decline there. Maybe explain Japan a little bit in more detail.

Speaker #6: Good, thanks for taking my questions. I have two. So, the first one—continuing on APAC—it was a bit surprising to me that it decreased in Q4.

Speaker #6: So, I mean, you were heading in the right direction in Q3, I thought. So, if you can maybe comment on Japan, because you outlined that quite clearly.

Speaker #6: And I guess—I don't know if Japan is around 15% of APAC, so it must be a quite steep decline there. So maybe, yeah, explain Japan a little bit.

Speaker #6: More in detail.

Speaker #2: Yeah. So the market in general, it's roughly 1,100 LINACs in Japan. And then if you assume a five-year or 15-year lifetime, you can expect how many will be purchased every year.

Jakob Just-Bomholt: Yeah. The market in general is roughly 1,100 linacs in Japan. If you assume 15-year lifetime, you can expect how many will be purchased every year. We saw a dip relative to that equilibrium last year. The outlook. There has been change in the reimbursement code. The outlook is actually favorable this year, so we expect to bounce back. Just give you a little bit of color, I was with the head of JASTRO, the society in Japan. There, the outlook is from government that in 15 years, we will see 24% more patients being treated by linear accelerators than today. The long-term potential is good in Japan. We saw both Japan, actually also Indonesia, where there has been a big government center being softer than what we expected. Yeah, it also surprised us a little bit, coming into 2025, 2026.

Speaker #2: And we saw a dip relative to that equilibrium last year. The outlook has been changed in the reimbursement code, so the outlook is actually favorable this year.

Speaker #2: So, we expect to bounce back. And just to give you a little bit of color, I was with the head of JASTRO Society in Japan.

Speaker #2: And there the outlook is from government that in 15 years, we will see 24% more patients being treated by linac accelerators than today. So the long-term potential is good in Japan.

Speaker #2: But we saw both Japan, and actually also Indonesia, where there's a big government center, being softer than what we expected. And yeah, it also surprised us a little bit coming into '25, '26.

Speaker #5: Thanks. You had a second question.

Peter Nyquist: Thanks. You had a second question, I think.

Jakob Just-Bomholt: Thanks. You had a second question, I think.

Speaker #6: Thanks, Mattias. Yes, thanks for that answer. Very, very clear. Then, regarding these order criteria changes that you have, I have some questions about that. If you could give maybe some examples of orders that you no longer consider, and what region this is mainly relevant for.

Mattias Vadsten: Thanks for that. Yes, thanks for that answer. Very clear. It is this order criteria changes that you have, some questions to that. If you could give maybe some examples of orders that you no longer consider, what regions this is mainly relevant for? I guess in the end of the day, also, anything you can say to give a sense of the margin improvement you see by these initiatives is helpful for us, of course. I would say in Q3, orders were quite good, if I remember correctly. I guess you have had these initiatives then as well. If you could comment on that a bit?

Speaker #6: I guess at the end of the day, anything you can say to give a sense of the margin improvement you see from this initiative is helpful for us, of course.

Speaker #6: And I would say, in Q3, orders were quite good, if I remember correctly. So, and I guess you have had this initiative then as well.

Speaker #6: And so, yeah, if you could comment on that a bit.

Speaker #2: Yeah. I mean, first, I'll just direct you to the nominal order intake. You look at it year-on-year. I look at it also nominal.

Jakob Just-Bomholt: Yeah. First I will just direct you to the nominal order intake. You look at it year on year. I look at it also nominal. As such, it was not a bad order intake, but obviously with a significant decline to Q4 last year. On order intake criteria, if I just speak at it broadly, we have for years seen that our order backlog grew much faster than revenue, and it became bigger and bigger to the point that we said we impair it. We also said we don't want to see that happening again. For private sector orders in general, we need a prepayment. We need a very clear site delivery. It really boils into, we need to have high certainty that that order materialize into revenue within a three-year time period.

Speaker #2: As such, it was not a bad order intake, but obviously, with the significant decline compared to Q4 last year. So, on the order intake criteria—just to speak about it broadly—we have for years seen that our order backlog grew much faster than revenue.

Speaker #2: And it became bigger and bigger to the point that we said we impair it. And we also said we don't want to see that happening again.

Speaker #2: So, for private sector orders in general, we need prepayment. We need very clear site delivery. So, it really boils down to the fact that we need to have high certainty that the order materializes into revenue.

Speaker #2: Within a three-year time period, then we have, by the way, also on service orders in general, tilted towards more yearly orders than multi-year orders.

Jakob Just-Bomholt: We have, by the way, also on service orders, in general tilted towards more yearly orders than multi-year orders. I'll just come back to, we did see some softness, particularly in the Middle East, and I can give you some specific examples. All in all, the way I encourage you to read it is that the order, our book-to-bill of 1.04 is now indicative of future revenue growth. That's at least how we look at it, and we wanted to create a stronger link between What we report at the order intake and what we expect as revenue going forward. On a very specific example, I can tell you, we got some deals we said no to every exception from the rule.

Speaker #2: So I'll just come back to—we did see some softness, particularly in the Middle East, and I can give you some specific examples. But all in all, the way I encourage you to read it is that the order or book-to-bill of 1.04 is now indicative of future revenue growth.

Speaker #2: That's at least how we look at it, and we wanted to create a stronger link between what we report at the order intake and what we expect as revenue going forward.

Speaker #2: Then, on a very specific example, I can tell you we got some deals where we said no to every exception from the rule. And some of them, we actually got prepayments, but that was from the distributors.

Jakob Just-Bomholt: Some of them, we actually got prepayments, but that was from the distributors, but we still didn't get pen to paper from the end user, and then we said no. We have said no to end-year discounts. We have said no to airfreighting equipment in to install within the fiscal year, and that's part of the commitment we have been very clear on. We want good quality of earnings.

Speaker #2: But we still didn't get pen to paper from the end user. And then we said no. And we have said no to end-of-year discounts. We have said no to air freighting equipment for installation within the fiscal year.

Speaker #2: And that's part of the commitment we have been very clear on. We want good quality of earnings.

Speaker #6: Thanks.

Mattias Vadsten: Thanks.

Speaker #5: Thanks, Mattias.

Jakob Just-Bomholt: Thanks.

Speaker #6: That's a very—can I just have a quick follow-up? Because I think that's a very helpful answer. This that you said around yearly orders on the service side compared to multi-year orders, would you say that's a significant—I’m expecting you not to quantify it—but would you say it's a material impact on the order development that we see?

Mattias Vadsten: Can I just have a quick follow-up?

Jakob Just-Bomholt: Sure.

Mattias Vadsten: I think that's a very helpful answer. This that you said around yearly orders on the service side compared to multi-year orders, would you say that's a significant, I'm expecting you not to quantify it, but would you say it's a material impact on the order development that we see?

Speaker #2: It depends on yeah, it depends a little bit from region to region. But I would say in general, we think it's more favorable for electorate to do single-year service contracts with that we can then renew because we the cost, I wouldn't say it's captive, but we typically have a long-lasting relationship.

Jakob Just-Bomholt: It depends.

Mattias Vadsten: Year over year.

Jakob Just-Bomholt: Yeah, it depends a little bit from region to region. I would say in general, we think it's more favorable for Elekta to do single-year service contracts that we can then renew because the customer, I wouldn't say it's captive, but we typically have a long-lasting relationship. We have been very clear on, we don't want to incentivize a behavior within Elekta, where there's an incentive to make a 5, 10-year service agreement when it's better for the company to do a yearly. Over time, we will reflect on should we show this full order intake, or should we more show the solution order intake, because it's actually more descriptive.

Speaker #2: And we have been very clear that we don't want to incentivize a behavior within the electorate where there's an incentive to make a five- or ten-year service agreement when it's better for the company to do a yearly agreement.

Speaker #2: And over time, we will reflect on should we show the full order intake or should we more show the solution order intake. Because it's actually more descriptive.

Speaker #6: Makes sense. Thank you very much.

Mattias Vadsten: Makes sense. Thank you very much.

Speaker #5: Thanks, Mattias. We'll move on to the next question. Erik Kassel, at Danske Bank. Please, Erik. Good morning.

Peter Nyquist: Thanks, Mattias. We'll move on to the next question. Erik Cassel at Danske Bank. Yes, Erik, good morning.

Erik Cassel: Hi. Good morning, everyone. I also want to talk a bit on orders and maybe start on the stricter acceptance criteria. Good color on it previously, but I just wanted to see if we can try to single out what sort of effect that had. For one, if you can talk about the solutions part of it, what sort of orders did you, say, decline to book now, and on what basis, and what was the impact? Also then on service, what was the service impact of it all? Any sort of color on that I think would be super helpful to see.

Speaker #7: Hi, good morning everyone. I also want to talk a bit about orders, and maybe start with the stricter acceptance criteria. I mean, good color only previously.

Speaker #7: But I just wanted to see if we can try to single out what sort of effect that had. For one, if you can talk about the solutions part of it—what sort of orders did you say declined to book now, and on what basis, and what was the impact?

Speaker #7: And then also, on service, what was the service impact overall? Any sort of color on that, I think, would be super helpful today.

Speaker #2: Yeah. Hi, Erik. I think, as I said, I gave a lot of color towards Mattias. So, just in general, we just say no to all orders recognizing them in our book-to-bill.

Jakob Just-Bomholt: Yeah. I think I gave a lot of color towards Matthias. Just in general, we just say no to all orders, recognizing them in our book-to-bill. They are part of our funnel if they don't live up to the criteria. I believe I also said now half a year ago that we hold our regional managers highly accountable to that orders coming in should materialize to revenue, because we incentivize not them, but salespeople on order. Of course, if you pay commission, you expect revenue.

Speaker #2: They are part of our funnel if they don't live up to the criteria. And I believe I also said, now half a year ago, that we hold our regional managers highly accountable to that—that orders coming in should materialize to revenue.

Speaker #2: Because we incentivize not them, but salespeople on orders. So, of course, if you pay commission, you expect revenue.

Speaker #7: Yeah, I appreciate that you gave a good qualitative color on it. I was just asking on the numbers side, if you can say anything on numbers.

Erik Cassel: Yeah, I appreciate that you gave a good qualitative color on it. I was just more asking on the numbers side, if you can say anything on numbers, what the actual impact was so we can distinguish between what was more market-driven, so to speak.

Speaker #7: Well, the actual impact was that we can sort of distinguish between what was more market-driven, so to speak.

Speaker #2: Yeah, I think the best—it doesn't directly answer, but I think the best guide we can give you here is that we have worked fairly hard on getting an order intake that is more descriptive of future revenue growth.

Jakob Just-Bomholt: Yeah, I think it doesn't directly answer, but I think the best guide we give you here is that we have worked fairly hard on getting an order intake that is more descriptive of future revenue growth. In the past, we saw a CAGR was significantly higher for order intake than materialized revenue. That's not a sign of a healthy order backlog. The way we look at it, we look at it distinctly from service, from software, from solution. We don't share these numbers here. Maybe we will consider it going forward. We don't here.

Speaker #2: In the past, we saw a CACA significantly higher for order intake than materialized revenue, and that's not a sign of a healthy order backlog.

Speaker #2: And then the way we look at it, we look at it distinctly from service, from software, from solution. But we don't share these numbers here.

Speaker #2: Maybe we will consider it going forward, but we don't here.

Speaker #7: Okay, fine. Then, just a quick follow-up on the service. Yearly instead, I was just wondering, does that open up for competitive tendering on the service side of your business every year?

Erik Cassel: Okay, fair. Just a quick follow-up on the service yearly instead. I was just wondering, does that open up for competitive tendering on the service side of your business every year? Do you still have some sort of, I guess, multi-year agreements on it to make sure that you actually get continuous service?

Speaker #7: Or do you still have some sort of, I guess, multi-year agreements on it to make sure that you actually get continuous service?

Speaker #2: I mean, in many regions, we generally see a very high, what we call, service attachment rate—close to 100% in the mature market.

Jakob Just-Bomholt: In many regions, we in general see a very high, what we call service attachment rate, close to 100% in the mature market, less so in developing market. We have certain perspective on how to increase that service attachment rate, both within our product and in our commercial execution. I actually feel we have untapped potential in the service area.

Speaker #2: Less so in developing markets. And then we have certain perspectives on how to increase that service attachment rate, both within our product and in our commercial execution.

Speaker #2: So, I actually feel we have an untapped potential in the service area.

Speaker #7: Okay, just one last question then. I saw that the regional adjusted margins were down quite a bit, and then, obviously, global costs were down dramatically year over year.

Erik Cassel: Just last question. I saw that the regional adjusted margins were down quite a bit, obviously global costs were down dramatically year over year. I was just trying to reconcile if, is there any sort of change in reporting now that you're running a more decentralized business, so costs are just moved around? Are there any non-recurring items you can talk about in terms of central cost when it comes to, say, more hedging, et cetera, so we can understand that a bit more?

Speaker #7: So I was just trying to reconcile if there is any sort of change in reporting now that you're running a more decentralized business, or are costs just moved around?

Speaker #7: Or are there any non-recurring items you can talk about in terms of central costs, when it comes to, say, more hedging, etc., so we can understand that a bit more?

Speaker #2: Yeah. So, the Q4, I understand—and it's a good catch—is a little bit of a transition quarter. We changed a lot of reporting lines as of the 1st of February.

Jakob Just-Bomholt: Yeah. The Q4, I understand, and it's a good catch. It's a little bit of transition quarter. We changed a lot of reporting lines 1 February. That then linked into cost center. We have a number of global functions now being decentralized into regions. It's really the total number you can look at. When we look at it, we can just say costs have gone down very, very significantly, both supporting our gross margin because we actually had bill of material increase, but that was strongly compensated by service and installation efficiency. Then, obviously, on OpEx and what I said in the beginning stands, of course, that we expect now the cost savings to significantly exceed the SEK 500 million.

Speaker #2: And that then linked into cost centers. So, we have a number of global functions now being decentralized into regions. So it's really the total number.

Speaker #2: You can look at it. And when we look at it, we can just say costs have gone down very, very significantly, both supporting our gross margin. Because we actually had a bill of material increase.

Speaker #2: But there was more than, or there was strongly compensated by, service and installation efficiency. And then, obviously, on OPEX—and what I said in the beginning stands, of course—that we expect now the cost savings to significantly exceed the SEK 500 million.

Erik Cassel: Okay, great. Thank you very much. I'll jump back in queue.

Speaker #7: Okay, great. Thank you very much. I'll jump back in the queue.

Peter Nyquist: Thanks, Erik. Next question is from Ludvig Eramndel at Handelsbanken. Good morning, Ludvig.

Speaker #2: Thanks, Erik. Next question is from Ludvig Germunder at Handelsbanken. Good morning, Ludvig.

Ludvig Eramndel: Good morning. Ludvig Ermander from Handelsbanken. I'd like to start with a more general question on the cost savings and pick up on where you ended there, Jakob. You've been talking about those SEK 500 million in annualized savings before, and now you're predicting, I think, that you expect cost savings to exceed the SEK 500 million. Would it be possible to give any number of how much you expect them to exceed the SEK 500 million? Also as a second question to that part, since you mentioned that a significant share of those were realized already now in Q4, would you be willing to give any sort of ballpark number what the significant share is equal to?

Ludvig Germunder: Good morning. Ludvig Ermander from Handelsbanken. I'd like to start with a more general question on the cost savings and pick up on where you ended there, Jakob. You've been talking about those SEK 500 million in annualized savings before, and now you're predicting, I think, that you expect cost savings to exceed the SEK 500 million. Would it be possible to give any number of how much you expect them to exceed the SEK 500 million? Also as a second question to that part, since you mentioned that a significant share of those were realized already now in Q4, would you be willing to give any sort of ballpark number what the significant share is equal to?

Speaker #8: Good morning. Ludvig Germunder from Handelsbanken. I'd like to start with a more general question on the cost savings and pick up on where you ended there, Jacob.

Speaker #8: So, you've been talking about those $500 million in annualized savings before. And now you're particularly, I think, expecting cost savings to exceed the $500 million.

Speaker #8: Would it be possible to give any number of how much you expect them to exceed the 500 million? And also, as a second question to that part, since you mentioned that a significant share of those were realized already now in Q4, would you be willing to give any sort of ballpark number of what the significant share is equal to?

Jakob Just-Bomholt: Yeah. I think we would like to reserve that for our CMD. That's our thinking, because we very quickly get into a more detailed guide for the year, we think it's important we deliver that as a total package. I think we take a step in that direction by saying that a significant part has been achieved in Q4. We saw that accelerating throughout the quarter, that I can say. We do expect the amount to significantly exceed SEK 500 million. We are ahead of plan, actually, on it. Most importantly, Ludvig, if I just come back to, we did it really to accelerate the pace of the company, I see that's happening throughout the company. We'll give you a very detailed OpEx, we feel good about where we are.

Speaker #2: Yeah, I think we would like to reserve that for our CMD. That's our thinking, because then we very quickly get into a more detailed guide for the year.

Speaker #2: And we think it's important we deliver that as a total package. But I think we take a step in that direction by saying that a significant part has been achieved in Q4.

Speaker #2: We saw that accelerating throughout the quarter—that I can say. And then, we do expect the amount to significantly exceed the $500 million, and we are ahead of plan, actually, on it.

Speaker #2: But most importantly, Ludvig, if I just come back to it, we really did it to accelerate the pace of the company, and I see that's happening throughout the company.

Speaker #2: But we'll give you a very detailed OPEX. We feel good about where we are, and that's, of course, also evidenced in what we report in EBITC.

Jakob Just-Bomholt: That's, of course, also evidenced in what we report in EBT. It's quite a big improvement year on year by 4.5%, and a lot of it stems from these operational efficiencies.

Speaker #2: It's quite a big improvement year on year, by 4.5%. And a lot of it stems from these operational efficiencies.

Ludvig Eramndel: Okay, I see. Thank you. Just one more question, please, on the impairments that you take in the quarter. Would you be willing to give me any comment around why you're doing this now and not together with the order book write-down back in Q2, for example? I'm just trying to understand what's happened now and how to think about how things are going.

Ludvig Germunder: Okay, I see. Thank you. Just one more question, please, on the impairments that you take in the quarter. Would you be willing to give me any comment around why you're doing this now and not together with the order book write-down back in Q2, for example? I'm just trying to understand what's happened now and how to think about how things are going.

Speaker #8: Okay, I see you. Thank you. And then just one more question, please, on the impairments that you took in the quarter. Would you be willing to give me any comment around why you're doing this now and not together with the order book write-down back in Q2, for example?

Speaker #8: I'm just trying to understand what's happened now and how to think about how things are going.

Jakob Just-Bomholt: All right. Yeah. I'll do it very short, and then to you, Klara. The reason why we did it now was really, coming into the company, first priority was on order intake. I do think we have guided that we wanted improved quality of earnings. I wanted a new CFO in who could look at the balance sheet with a fresh perspective. That was one of the first assignments you got. We had your view, Klara.

Speaker #2: All right. Yeah, yeah. So I'll do it very short and then to you, Clara. The reason why we did it now was really, coming into the company, first priority was order intake.

Speaker #2: I do think we have guided that we wanted improved quality of earnings. And then I wanted a new CFO in, who could look at the balance sheet with a fresh perspective.

Speaker #2: So that was one of the first assignments you got. So, we had your view, Clara.

Klara Eiritz: Yeah. No, exactly. As a new CFO, I think it made sense to do that as part of me coming on board. I wasn't here when you did the right-sizing of the order backlog.

Speaker #9: Yeah, no, exactly. I mean, as a new CFO, I think it made sense to do that as part of me coming on board. And I wasn't here when you did the rightsizing of the order backlog, so...

Ludvig Eramndel: Just a quick follow-up, if I may. How does this impairment now change the R&D amortization levels going forward? How should we think about that?

Ludvig Germunder: Just a quick follow-up, if I may. How does this impairment now change the R&D amortization levels going forward? How should we think about that?

Speaker #8: And just a quick follow-up, if I may. How does this impairment now change the idea of amortization levels going forward? How should we think about that?

Klara Eiritz: They will go down a little bit. The amortization levels are also, of course, dependent on what products that we commercialize going forward. It's a give and take. If you just look at the effect from the write-downs now, there is a small effect on the amortization going forward. Also, some of the write-downs that we did are related to things that were not set to start to amortize. It was set to start to amortize in a few years also. It's hard to be super specific on that. Of course, a small effect. Yes.

Speaker #9: They will go down a little bit, but the amortization levels are also, of course, dependent on what products we commercialize. And so, going forward...

Speaker #9: So it's a give and take. But if you just look at the effect from the write-downs now, there is a small effect on the amortization going forward.

Speaker #9: But also, some of the write-downs that we did are related to things that were not set to start to amortize yet—it was set to start to amortize in a few years, also.

Speaker #9: So, you know, it's hard to be super specific on that. But of course, it's a small effect, yes.

Jakob Just-Bomholt: I think you should model that capitalization will equal amortization. That is at least our base assumption.

Speaker #2: I think you should model that capitalization will equal amortization. That’s at least our basic assumption. Thanks, Ludvig.

Ludvig Eramndel: Okay.

Ludvig Germunder: Okay.

Jakob Just-Bomholt: Thanks, Ludvig.

Ludvig Eramndel: Thank you for that. I'll get back into the queue.

Ludvig Germunder: Thank you for that. I'll get back into the queue.

Speaker #8: Okay, thank you for that. I'll get back into the queue. Do that, and we will have Kavya Deshpande from UBS coming up here. Good morning, Kavya.

Peter Nyquist: Yep. We will have Kavya Deshpande from UBS coming up here. Good morning, Kavya.

Kavya Deshpande: Good morning. Thanks for taking my questions. Two from me, please. The first on the order review, sorry, the order criteria. Am I correct that it was newly applied in Q4? Is it stricter than the criteria that had led to the previous backlog cancellations that we've seen over the last 12 months? If so, could we see a further review of the backlog going forward? The second question is on service revenue growth. By region, it looks in the Americas, it was flat in constant currency, despite a very weak comp. Is there anything to call out specifically for Americas service sales growth in Q4? Thank you.

Speaker #10: Good morning. Thanks for taking my questions. Two from me, please. The first one: the order review—sorry, the order criteria. Am I correct that it was newly applied in Q4?

Speaker #10: Is it stricter than the criteria that had led to the previous backlog cancellations that we've seen over the last 12 months? And if so, could we see a further review of the backlog going forward?

Speaker #10: And the second question is on service revenue growth. By region, it looks like in the Americas it was flat in constant currencies, despite a very weak comp.

Speaker #10: Is there anything to call out specifically for America's service sales growth in Q4? Thank you.

Jakob Just-Bomholt: Yeah. On the order intake, no, same criteria that has been applied throughout the year, I would say. Same criteria, same interpretation. Those criteria were not to the same extent in place Q4 last year, and hence part of the comp difference. We did get fewer orders than expected, particularly in the Middle East. Yeah. On the service side, we do show overall growth for the company. I don't have specific comments on the US.

Speaker #2: Yeah. So on the order intake, no, the same criteria that have been applied throughout the year, I would say. So, same criteria, same interpretation. Those criteria were not to the same extent in place in Q4 last year.

Speaker #2: And hence, part of the comp difference. And then we did get fewer orders than expected, particularly in the Middle East. Yeah. So on the service side, we do show overall growth for the company.

Speaker #2: I don't have specific comments on the US.

Kavya Deshpande: Understood. Thank you very much.

Speaker #10: I'm sure. Thank you very much.

Peter Nyquist: Thanks. We'll move to the next question, from Veronika Dubajova at Citi. Good morning, Veronica.

Speaker #2: Thanks. We'll move to the next question from Veronica Dubayva at Citi. Good morning, Veronica.

Van Nguyen: Good morning. It's Van Nguyen from Citi on behalf of Veronica.

Speaker #10: Good morning. It's Zhang Lin from Citi, on behalf of Veronica.

Peter Nyquist: Okay, good.

Van Nguyen: Thanks for taking my questions. I have two, please, and one modeling follow-up for Klara, if I may. The first question is, and apologies, back on the order intake growth. Can you comment on the dynamics in order intake in Q4 outside the Middle East and Southeast Asia? The US, we talked about it, but how about India, ex Middle East, and the rest of APAC? The second question is related to the reduction in absolute R&D spend. What was behind it in the quarter, and what's your outlook for growth R&D going forward? Then I will ask my follow-up for Klara after. Thanks.

Speaker #2: Okay. Good.

Speaker #10: Thanks for taking my questions. I have two, please, and one modeling follow-up for Clara, if I may. So, the first question is—apologies—back on the order intake growth.

Speaker #10: Can you comment on the dynamics in order intake in Q4 outside of the Middle East and Southeast Asia? So, the US—we talked about it.

Speaker #10: But how about EMEA, excluding Middle East, and the rest of APAC? And the second question is related to the reduction in absolute R&D spend. What was behind this in the quarter?

Speaker #10: And what's your outlook for both R&D going forward? And then I will ask my follow-up for Clara after. Thanks.

Jakob Just-Bomholt: Yeah. We did have substantial impact by specific orders in specific North African, Middle East countries that led to lower than what we expected order intake in Q4. As I said, it really also linked into fairly firm interpretation of what we put in the order backlog. I'll come back to what I've said, that with the order backlog, it's now a more appropriate guide for future revenue growth. That's where I would say we are on the order backlog. Yeah, what was the second question again?

Speaker #2: Yeah, so we did have substantial impact by specific orders in specific North African and Middle East countries that led to lower than what we expected order intake in Q4.

Speaker #2: And then, as I said, it really also linked into a fairly firm interpretation of what we put in the order backlog. And I'll come back to what I've said—that with the order backlog, it's now a more appropriate guide for future revenue growth.

Speaker #2: So that's where I would say we are on the order backlog. Yeah. What was the second question again?

Peter Nyquist: That was on R&D spend.

Jakob Just-Bomholt: Oh, yeah, R&D spend. Yeah. I don't want to give a guide for next year. Part of our OpEx savings is linked to a more focused R&D strategy and more R&D efficiencies. We have been also de-layering and setting up a new organizational structure within R&D that reduces the overall R&D spend. We still expect to maintain a very healthy and high R&D spend, gross spend, in percentage of revenue because we can see there's a lot of innovation to be harvested. Then you had.

Speaker #8: That was an R&D spend.

Speaker #2: Oh, yeah. R&D spend. Yeah, I don't want to give a guide for next year. But part of our OPEX savings is linked to a more focused R&D strategy and more R&D efficiencies.

Speaker #2: And we have also been delaying and setting up a new organizational structure within R&D that reduces the overall R&D spend. But we still expect to maintain a very healthy and high gross R&D spend as a percentage of revenue because we can see there's a lot of innovation to be harvested.

Van Nguyen: Okay, thanks.

Speaker #8: And then you had a detail question, or...

Jakob Just-Bomholt: detailed question or?

Van Nguyen: Yes.

Jakob Just-Bomholt: Yeah.

Speaker #10: Yes. Yeah. For Clara, if I could. Can you provide any color on the FX impact for fiscal '26 and '27 on revenues, and also through to margin growth and EBIT margin?

Van Nguyen: Yeah. For Klara, if I could, can you provide any color on the FX impact for fiscal 2026, 2027 on revenues and also through the margin of growth and EBIT margin, please?

Klara Eiritz: Yes. Sorry. You mean the full year 2025, 2026?

Speaker #9: Yes. So for the full year of—sorry, do you mean the full year of 2025–2026?

Peter Nyquist: You mean the quarter, right?

Speaker #2: Oh, you mean the quarter, right?

Van Nguyen: No, sorry. For the coming fiscal year.

Speaker #10: No, sorry. Yeah, for the coming fiscal year.

Klara Eiritz: For the coming fiscal year. No, I don't think we speculate in currency effects going forward, so I don't think I'm going to Is that okay, Peter, to say that?

Speaker #9: For the coming fiscal year, no, I don't think we speculate in currency effects going forward. So, I don't think I'm going to. Is that okay, Peter?

Peter Nyquist: Sure. Absolutely.

Klara Eiritz: Yeah. So.

Speaker #9: Say that. So.

Peter Nyquist: Great.

Van Nguyen: Great. Thank you.

Van Nguyen: Thank you.

Peter Nyquist: Thanks. We'll move to Oliver Reinberg at Kepler. Morning, Oliver.

Speaker #8: Great.

Speaker #10: Thank you.

Speaker #2: Thanks. We'll move to Oliver Reinberg at Kepler. Good morning, Oliver.

Oliver Reinberg: Hi. Good morning, guys. Three questions from my side. Firstly, just on inflation and tariffs, can you provide a bit of color what you have in mind in terms of the inflation impact for the new upcoming year, and whether tariffs are still a headwind or potential tailwind, and any kind of quantified guidance would be helpful. Secondly, on services, it's usually a stable growth driver. We had, I think, overall globally now, flat sales in Q4, although the full year was a bit more moderate with 3% growth only, while normally pricing should provide us support. I assume there's not any kind of larger impact from moving from multi-year to single-year contracts, but any kind of color on that would be great.

Speaker #11: Hi, good morning, guys. Quick question from my side. Firstly, just on inflation and tariffs—can you provide a bit of color on what you have in mind in terms of the inflation impact for the upcoming year, and whether tariffs are still a headwind or potential tailwind? Any kind of quantified guidance would be helpful.

Speaker #11: Secondly, on services. I mean, it's usually a stable growth driver. We had, I think, overall globally, now flat sales in Q4. Also, the full year was a bit more moderate, with only 3% growth, while normally pricing should provide a supporter.

Speaker #11: I assume there’s not any kind of larger impact from moving from multi-year to single-year contracts, but any kind of color on that would be great.

Oliver Reinberg: Then thirdly, just checking, it sounded like on the outlook for this year, which is a bit vague, can we actually expect this to become more granular as part of the CMD? Thank you.

Speaker #11: And then, thirdly, just checking—it sounded like, on the outlook for this year, which is a bit vague. Can we actually expect this to become more granular as part of the CMD?

Speaker #11: Thank you.

Peter Nyquist: You want to start, Peter?

Speaker #2: Do you want to start? Yeah, absolutely. So, when we look at inflation, it has two dimensions: cost and price. We clearly see, on cost, a certain inflationary impact from logistics.

Jakob Just-Bomholt: Yeah, absolutely. When we look at inflation, it has two dimensions, cost and price. We clearly see on cost a certain inflationary impact from logistics. We put tungsten in our machine. Price have come up a bit, now it's dropped by 55%, by the way. Also other microchips that we put and apply in our software also. We are under pressure on bill of material, but we expect to offset that by operational execution and then price increases throughout the system. It goes back to the point I said on price discipline. We really come in with some very strong floor pricing requirement and margin requirement. On service growth, yeah, we have 3% growth. You can say it's modest. It's a service growth, and in general, our business is, on the service side, predictable. Many of our contracts have a CPI clause.

Speaker #2: We have put tungsten in our machine; prices have come up a bit now. It's dropped by 55%, by the way. Also, other microchips that we put and apply in our software as well.

Speaker #2: So, we are under pressure on bill of material, but we expect to offset that by operational execution. And then, price increases throughout the system—it goes back to the point I said on price discipline.

Speaker #2: So we really come in with some very strong floor pricing requirements and margin requirements. On service growth, yes, we have a 3% growth.

Speaker #2: You can say it's modest, but it’s a service growth. And in general, our business on the service side is predictable. Many of our contracts have a CPI clause.

Jakob Just-Bomholt: Those who do not have, we will review and renegotiate, because cost is coming up. We don't want to be further specific on the outlook, except we'll come back to that at CMD, where we hope to be more granular, or we expect to be more granular on this year and our midterm target.

Speaker #2: Those who do not have, we will review and renegotiate because cost is coming up. We don't want to be further specific on the outlook.

Speaker #2: Except, we'll come back to that at CMD, where we hope to be more granular. Are we expected to be more granular on this year and our midterm target?

Peter Nyquist: Great. Thanks, Oliver. We'll move to the next question from Kristofer Liljeberg at Carnegie. Good morning, Kristofer.

Speaker #8: Great, thanks, Oliver. We'll move to the next question from Christophe Lilleberg at Carnegie. Good morning, Christophe.

Kristofer Liljeberg: Yeah, good morning. Just one question on orders and these more stricter criteria. Could you comment on what you think the average time now from order to sales is? The reason I am asking is your comment also that the book-to-bill of 1.04 is a better indication of sales growth. Would that imply that you could grow 4% or so in the new fiscal year?

Speaker #12: Yeah, good morning. Just one question on orders and this more stringent criteria. Could you comment on what you think the average time is now from order to sales?

Speaker #12: And the reason I'm asking is your comment also that the book-to-bill of 1.04 is a better indication of sales growth. So would that imply that you could grow approximately 4% or so in the new fiscal year?

Jakob Just-Bomholt: Yeah, as I said, we don't want to give the guide for this fiscal year until we meet on the 17 June. Book-to-bill, it actually varies a lot from region. If we take our Asia Pacific region, it's faster. It's actually a little bit longer in more mature markets, but give and take 12 months. As I said, there are quite significant regional differences.

Speaker #2: Yeah. As I said, we don't want to give the guidance for this fiscal year until we meet on the 17th of June. So, book-to-bill actually varies a lot by region.

Speaker #2: So, if we take our Asia-Pacific region, it's faster. It's actually a little bit longer in more mature markets, but, give and take, 12 months.

Speaker #2: But as I said, there are quite significant regional differences.

Peter Nyquist: You good with that, Kristofer?

Speaker #8: You're good with that, Christophe?

Kristofer Liljeberg: Yeah, sorry, I was muted. You think it's fair to assume that orders that have been booked now this fiscal year is a better indication of sales growth in the new fiscal year than it has been for many years? I remember if you go back a long time, that was a pretty good indication, but it hasn't been for at least 10 years, maybe more.

Speaker #12: Yes, sorry. I was muted. But do you think it's fair to assume that orders that have been booked now this fiscal year are a better indication of sales growth in the new fiscal year than they have been for many years?

Speaker #12: I remember, if you go back a long time, that was a pretty good indication. But it hasn't been for at least ten years, maybe more.

Jakob Just-Bomholt: Yeah. It's not a guide, but as I said, part of our quality of earnings is to make sure we have a backlog that is actually a better indicator for future revenue growth. That's really the purpose of disclosing it. What I can say, it's a better guide than prior years.

Speaker #2: Yeah, yeah. So, it's not a guide, but as I said, part of our quality of earnings is to make sure we have a backlog that is actually a better indicator for future revenue growth.

Speaker #2: That's really the purpose of disclosing it. So, what I can say is, it's a better guide than prior years. And then we will share the specific guide with you when we meet on the 17th of June.

Kristofer Liljeberg: Okay. Thank you.

Jakob Just-Bomholt: We will share the specific guide with you when we meet on 17 June.

Peter Nyquist: Great. Thanks, Jakob. We are now open for the last question for this session. That's from Sten Gustafsson at ABG Sundal Collier. Please, good morning, Sten.

Speaker #8: Great. Thanks, Jacob. We are now open for the last question for this session, and that's from Sten Gustafsson at ABG Sundal Collier. So please, and good morning, Sten.

Speaker #12: Yes, good morning. There have been a lot of good questions on the order criteria, so I think we can maybe move to something else. In terms of sales, and just to clarify, you said something like your sales growth for the quarter would have been in line with previous quarters if it wasn't for the Middle East.

Sten Gustafsson: A lot of good questions on the order criteria. I think we can maybe move to something else. In terms of sales, and just to clarify, you said something like, your sales growth for the quarter would have been in line with previous quarters if it wasn't for the Middle East. Can you confirm that I heard that correctly, and preferably also maybe quantify what you're referring to? Is that 2% or something like that?

Speaker #12: Can you confirm that I heard that correctly? And preferably also maybe quantify what you're referring to. Is that like 2% or something like that?

Jakob Just-Bomholt: Yeah, I think we would have been 1%, 2% organic growth if we didn't have specific projects being delayed in the Middle East.

Speaker #2: Yeah, I think we would have been 1–2% organic growth if we didn't have specific projects being delayed in the Middle East.

Sten Gustafsson: Okay, perfect. Thank you. My last question then would be, do you think that some clients, mainly in the US or other regions, are hesitant to book Evo until they see the new Siemens machine coming out during the fall, or expected to be launched in the fall?

Speaker #12: Okay, perfect. Thank you. And my last question then would be: do you think that some clients, mainly in the US or other regions, are hesitant to book EVO until they see the new Siemens machine coming out during the fall, or expected to be launched in the fall?

Jakob Just-Bomholt: It's not what we see, Sten. We see our funnel, our orders, developing as per plan. Keep in mind, we come from a small base, so we are the challenger, not the incumbent. There is a strong systemic demand for having vendor competition in the US. We actually just don't see it play out, and that's why we also call out here, we expect double-digit order growth in the US for this fiscal.

Speaker #2: It's not what we see, Sten. I mean, we see our funnel, our orders developing as per plan. But keep in mind, we come from a small base.

Speaker #2: So, we are the challenger, not the incumbent. And there is a strong systemic demand for having vendor competition in the U.S., so we actually just don't see it play out.

Speaker #2: And that's why we also point out here that we expect double-digit order growth in the US for this fiscal year.

Sten Gustafsson: Perfect. Thank you very much.

Speaker #12: Perfect. Thank you very much.

Peter Nyquist: Thanks, Sten. That concludes the Q&A session for the Q4 earnings call. Maybe, Jakob, some final remarks before we close the call?

Speaker #8: Thanks, Sten. And that concludes the Q&A session for the Q4 earnings call. And maybe, Jacob, some final remarks before we close the call?

Jakob Just-Bomholt: Yeah. We closed the year. It has been an eventful year. I think a lot has been achieved, but we, as I started out by saying, we are not at full potential. We are not happy with the top-line growth, Middle East and not Middle East, but it was in line with our plan because we have focused on reset and stabilize. Now we need to improve the underlying profitability. Here, I will say the quarter is a significant step in that direction. We see a very significant EBITC uptake from Q4 last year. We see that translate into cash flow. We see our net debt coming down. As I also ended up by saying, long term for Elekta to be at full potential, we need to grow at or above the market.

Speaker #12: Yes. So, we closed the year. It has been an eventful year. I think a lot has been achieved. But, as I started out by saying, we are not at full potential.

Speaker #12: We are not happy with the top-line growth — Middle East and not Middle East — but it was in line with our plan because we have focused on reset and stabilize. Now we need to improve the underlying profitability.

Speaker #12: Here, I would say the quarter is a significant step in that direction. We see very significant EBITA uptake from Q4 last year. We see that translate into cash flow.

Speaker #12: We see our net debt coming down. But, as I also ended by saying, long term, for Elekta to be at full potential, we need to grow at or above the market.

Peter Nyquist: Great. Thank you, Jakob, and thank you, Klara, for the first presentation here at this call. By that, we close the call. I look forward to see you all at the CMD in Stockholm on 17 June. There are still opportunities to sign up for that on our webpage, so please do that, and it's going to be an exciting event. Thank you, and goodbye.

Speaker #8: Great. Thank you, Jacob. And thank you, Clara, for the first presentation here on this call. With that, we will close the call. I look forward to seeing you all at the CMD in Stockholm on June 17.

Speaker #8: There is still an opportunity to sign up for that on our webpage, so please do that. It's going to be an exciting event.