Annual Report
2021/22
We don’t just
build technology,
we build hope.
LOFOTEN, NORWAY
JUNE 24, 06:15 AM
This is Elekta 1
Business overview
CEO’s comment 6
Market and trends 8
Strategic framework 11
Oering 18
Geographical overview 30
Risk management 36
The share 41
In-depth Sustainability Report
Introduction 44
Access to Healthcare 46
Environmental Action 50
Business Ethics 54
People in Focus 58
Sustainability governance
and reporting principles 64
GRI content index 69
Auditor’s report 72
Corporate governance
Chairman’s comment 74
Corporate Governance Report 75
Internal control 83
Board of Directors 86
Executive Management 88
Auditor’s report 91
Remuneration Report 92
Financial reporting
Board of Director’s Report 96
Consolidated income statement 104
Consolidated statement of
comprehensive income 104
Consolidated balance sheet 106
Changes in consolidated equity 108
Consolidated cash ow statement 110
Financial statements –
Parent Company 112
Notes 114
Signatures of the Board 147
Auditor’s report 148
Glossary 152
Denitions 154
Alternative performance measures 155
Five-year review and key gures 158
Annual General Meeting 2022 160
Financial calender cover
Content
Global leader in
precision radiation
therapy
About the Annual Report
Pages 94–147 constitute the statutory annual report,
which has been audited. The Annual Report also in-
cludes Elekta’s sustainability information, corporate
governance and remuneration reports. Elekta presents
a sustainability report prepared in accordance with the
GRI Standards, Core option, and a sustainability report
in accordance with the Swedish Annual Accounts Act.
With sales in
120
countries...
... through
40
local oces
plus distributors…
... our global team of
4
,
700
employees combine
passion, science and
imagination to profoundly
change cancer care
Our strategy ACCESS 2025 and our sustainability
agenda is set on improving access to healthcare
globally (UNs SDG 3) enabled by environmental action,
securing our ethical business standards, and ensuring
health, safety and engagement of our people.
Delivered in a
sustainable way
Accelerate
innovation
Be the
customer
companion
Drive
adoption
Drive
partner
integration
Our vision:
a world
where everyone
has access to
the best
cancer care
8,000
10,000
12,000
14,000
16,000
21/2220/2119/20
SEK M
0
5
10
15
20
%
11.3%
14,548
Net sales and EBIT margin
Order backlog
0
10,000
20,000
30,000
40,000
21/2220/2119/20
SEK M
39,656
Net debt
1)
/EBITDA ratio
0.0
0.5
1.0
1.5
2.0
2.5
3.0
21/2220/2119/20
MULTIPLE
0.57
1)
Excluding lease liabilities.
Key gures
Impacted by Covid-19.
Solutions ~60% of net sales
Linac
Oncology
Informatics
Neuro
Brachy
We openly collaborate with customers
to advance sustainable, outcome-driven and
cost-ecient solutions to meet evolving
patient needs, improve lives and bring hope
to everyone dealing with cancer.
Service ~40% of net sales
Delivering high quality after-market
services, generating recurring revenues
1
Push the
boundaries
50 years of
innovation
and beyond
ELEKTA ANNUAL REPORT 2021/22
2
Experience
the dierence
50 years of
innovation
and beyond
3
ELEKTA ANNUAL REPORT 2021/22
... and access
to the best
cancer care.
Articial
intelligence
enhancing
productivity...
ELEKTA ANNUAL REPORT 2021/22
4
BUSINESS
OVERVIEW
5
ELEKTA ANNUAL REPORT 2021/22
“ We have invested signi-
cantly in R&D and inno-
vation to support future
growth and margin
expansion. ”
Driving growth
despite challenges
Elekta showed resilience and delivered growth throughout the year,
but our margins were pressured by the current challenges in global
supply chains.
Securing cancer care and driving growth in
a year impacted by supply chain challenges
Last year, I summarized the year as unprecedented, as our focus
was to help our customers maintain cancer care in a world
stricken by the pandemic and lockdowns. This year, just as the
world was opening, we were faced with new headwinds, supply
chain disturbances, component shortages, and increased ina-
tion. Throughout the year, our priority has been to continue to
secure installations and service our solutions to help our cus-
tomers take on the cancer backlog, a result of the past years’
pandemic. Elekta showed resilience and delivered growth
throughout the year, but our margins were pressured by the
current challenges in the global supply chains.
ACCESS 2025 – delivering on our four
strategic pillars in a sustainable way
We entered the scal year with our Capital Markets Day in June
2021 where we launched our strategy, ACCESS 2025, and our
midterm nancial outlook. ACCESS 2025 supports our vision of
a world where everyone has access to the best cancer care. It is
based on four strategic pillars: accelerate innovation with cus-
tomer utilization in mind, drive adoption, be the customers’ life-
long companion and drive partnership integration, on which we
have executed throughout the year.
With innovation with customer utilization in mind we
have invested signicantly in R&D and innovation to support
future growth and margin expansion. The cancer care backlog
requires eective radiation therapy and better workows for cli-
nicians. Our latest linear accelerator, Elekta Harmony, delivers
on this need. We also see an increased global focus on short-
course treatments, accelerated by the pandemic, to reduce
hospital visits. Our innovation in image-guided radiotherapy is
enabling clinicians to reduce the number of treatment courses
from 30toonly a few. Leading this development is Elekta Unity,
ourMR-Linac, which over the year has showed impressive clini-
cal outcome, pushing the boundaries for what is possible to
treat, with some very promising results on, for instance, treat-
ment ofpancreatic cancer, a form of cancer that has been
veryhard to treat, and prostate cancer, where the results in di -
cate fewer sessions, fewer side eects and potentially better
outcomes. Wecontinue to drive the paradigm shift in radiation
therapy by having more than 120 Unity systems sold and more
than 60installed. Another important innovation milestone was
the launch of our latest Leksell Gamma Knife platform, Elekta
Esprit. It has the capacity to reduce treatment planning from
what used to be hours, to under 60 seconds. Through Kaiku
Health, we have partnered up with global pharmaceutical
companies, and have initiated truly inspiring programs with
ourcustomers, enabling more personalized and precise care,
thanks to patient reporting and AI monitoring of side eects.
Access to the best cancer care is also driven by our strate-
gicpillar of partner integration across the cancer care
eco system. Elekta is the only company of scale focusing ex -
clusively on radiation therapy, and we are also committed to
partnership both with healthcare companies and customers.
BUSINESS OVERVIEW CEO COMMENT
ELEKTA ANNUAL REPORT 2021/22
6
Inthe beginning of this scal year, we announced our strategic
partnership with Royal Philips, where we deepened an already
successful collaboration to further develop products and solu-
tions. We have also launched a commercial partnership with GE
Healthcare, andwith IBA. Recently, we signed a ten-year cus-
tomer partnership with the leading cancer institute in the Neth-
erlands, NKI/AVL, to cocreate personalized workows and drive
treatment delivery advancements.
Elekta is driving adoption across the globe by expanding
the number of people who have access to radiation therapy
by300 million by the end of our scal year 2024/25. This will be
achieved by adding 825 linacs to underserved market where
people today lack access to radiation therapy. So far, we are
wellon track to reach this target, by increasing access to an
additional 123 million people. To drive growth and customer
satis faction, we deployed a strategy of having more direct
market presence and over the year we opened oces in the
Philippines and Indonesia. We also inaugurated the Elekta
Foundation at EXPO in Dubai. The Foundation’s mission is
toimprove cancer care access in underserved markets and
“ During the year we have
worked diligently to validate
our CO
2
e baseline as well as
identify and drive actions
to reduce it. ”
regions, and it will focus on increased awareness and preven-
tion, strengthen the infrastructure, and expand training.
It is crucial that we deliver our strategy in a sustainable way,
and during the year we have worked diligently to validate our
CO
2
e baseline as well as identify and drive actions to reduce it.
I’m proud that we now have submitted our emission targets for
validation by the Science Based Targets initiative, to secure the
alignment with climate science. We also continue to support the
principles of the UN Global Compact.
Driving growth and margin expansion
in an uncertain environment
We are convinced that long-term market trends around the
unmet need for cancer care are supporting growth and invest-
ment in high-end radiotherapy equipment as well as margin
expansion. We expect the uncertain macroeconomic environ-
ment and supply chain challenges to continue to impact instal-
lations, costs, and margins. To mitigate these eects, we are
accelerating our Resilience and Excellence program to improve
our cost base and further strengthen our processes.
I would like to thank all Elekta employees for their important
and tireless work to give patients around the world access to the
best cancer care and extend my gratitude to all our customers
and partners who, through their dedication and commitment
to patients, provide hope for everyone dealing with cancer.
Gustaf Salford
President and CEO
CEO COMMENT BUSINESS OVERVIEW
7
ELEKTA ANNUAL REPORT 2021/22
Expanding access
main growth driver
The need for cancer care is growing globally.
Radiotherapy plays an important role in treating
cancer but is currently underused, especially in
low- and middle-income countries where access
to equipment is lacking. Closing this access gap
is vital to improve global cancer care.
The market for radiotherapy and related oncology informatics
software is estimated to be worth more than USD 7 billion glob-
ally. Historically, pre-covid, it has grown by 6–8 percent annu-
ally. Elekta has a strong global market position with an overall
market share of 42 percent
1)
.
The market is primarily driven by an increase in the number of
patients and the continuous strive to improve patient out-
comes. Growing radiotherapy adoption with the expansion of
treatment capacity in currently underserved low- and middle-
income countries is expected to be the main future growth
driver
2)
.
The overall market for linear accelerators is dominated by Elekta
and Siemens Healthineers. The MR-Linac subsegment consists
of Elekta and ViewRay. For more information on competition,
see
page 96.
1)
Based on order intake of linacs, MR-Linacs and Leksell Gamma Knife systems in 2021/22.
2)
Data bridge market research. Markets and markets. Competitive reporting.
Elekta business intelligence.
Geographic
5–7%
non-
software
7–9%
software
8–10%
emerging
markets
2–4%
mature
markets
Solutions
North America
2.1M
1.7%
12
Europe
4.3M
1.1%
5
Asia
10.8M
2.7%
1
Expected number of new cancer cases 2025 Number of radiotherapy units per capita 2021Expected yearly growth in cancer cases 2020–2025
Latin America & Caribbean
1.6M
2.8%
2
Africa
1.3M
3.2%
0.3
Oceania
0.2M
2.4%
6
Source: Ferlay J, et al. Global Cancer Observatory: Cancer Tomorrow. Lyon: International Agency for Research on Cancer, 2020; The IAEA Directory of Radiotherapy Centres (DIRAC), 2021.
Elekta expects the following growth rates going forward based on market reports
and Elekta’s business intelligence.
BUSINESS OVERVIEW MARKET AND TRENDS
ELEKTA ANNUAL REPORT 2021/22
8
Drivers for radiotherapy adoption
More people get cancer…
The world’s population is increasing and aging. With the
65+ cohort expected to increase by almost 80 percent by
2040
1)
, cancer incidence will increase. The World Health
Organization estimates new cancer cases will grow from
an estimated 18 million cases in 2020 to 28 million new
cases in 2040
2)
.
…and live with it longer…
As survival rates have improved over time, more people
are living with cancer as a chronic condition. This increases
the risk of oligometastatic disease. As a non-invasive treat-
ment option, radiotherapy plays an important part in
treating oligometastases, adding both years to life and life
to the years
3)
.
…but many still lack
access to radiotherapy
There are large structural dierences in cancer care and
the availability of radiotherapy between countries and
regions. While 50–60 percent of all cancer patients need
radiotherapy treatment, 40–60 percent of them lack
access. Investments in radiotherapy capacity in low- and
middle-income countries would save lives and lead to
substantial economic benets
4)
.
1)
Projections from the UN Population Division, https://www.un.org/development/desa/pd/
2)
GLOBOCAN, data visualization available at CANCER TOMORROW: https://gco.iarc.fr/tomorrow/en/dataviz/isotype?types=0&single_unit=500000&cancers=40
(excluding non-melanoma skin cancer)
3)
Palma et al, 2020, Stereotactic Ablative Radiotherapy for the Comprehensive Treatment of Oligometastatic Cancers, available
at https://www.medrxiv.org/content/10.1101/2020.03.26.20044305v1
4)
Atun et al, Expanding global access to radiotherapy, The Lancet Oncol 2015 Sep; 16(10): 1153-86 https://pubmed.ncbi.nlm.nih.gov/26419354/
MARKET AND TRENDS BUSINESS OVERVIEW
9
ELEKTA ANNUAL REPORT 2021/22
Personalized precision
Medical science and technology
continue to advance, creating new
possibilities for tailored and better
targeted treatment for patients.
In radiotherapy, advances in imag-
ing, for example the launch of
MR-Linacs, expands the potential
use of radiation treatment to
more cancer types and enables
lower-margin planning, online
adaptive treatment and hypo-
fractionation – a treatment plan
where the planned radiation dose
is delivered in ve treatment ses-
sions, so-called fractions, or less.
Healthcare trends
Higher productivity
Aging populations and more
treatment options will lead to
increasing costs for healthcare
systems. As a result, there is a
clear trend in all markets, regard-
less of reimbursement system or
nancing model, to align eco-
nomic incentives with quality of
care and to focus on cost e-
ciency and productivity. This
benets cost-ecient treatments
such as radiotherapy, and within
radiotherapy more productive
treatment plans such as hypo-
fractionation.
Increased digitalization
More treatment options and
workow complexity across most
healthcare disciplines increase the
need for digital decision support
for clinicians, and workow man-
agement tools for clinics. In addi-
tion, oncology and radiotherapy
are data-intensive disciplines that
are well-suited to reap the benets
of AI-supported automation tools
and big-data analysis. Tying data
from dierent workows together
into integrated solutions will bene-
t both precision and productivity
in cancer care.
BUSINESS OVERVIEW MARKET AND TRENDS
ELEKTA ANNUAL REPORT 2021/22
10
Access to the
best cancer care
Our updated strategy is guided by our purpose, mission, and vision. It builds on
our strengths as a leader in precision radiation therapy and our unique position
as an agile innovator and the only independent radiotherapy provider of scale.
Strategic framework
Our purpose is to inspire hope for anyone dealing with cancer,
be those patients, clinicians, or relatives. While radiotherapy has
a critical role to play in inspiring hope, it is not the sole answer.
Therefore, our mission is to improve patients’ lives by working
together with our customers. We use our precision radiation
expertise to work hand in hand with clinicians and our part-
ners to continuously develop innovative, outcome-driven, and
cost-ecient solutions that provide a lasting clinical dier-
ence in a sustainable way. We believe in taking an open and
proactive approach in our practices, enabling us to build
strong partnerships and meet evolving patient needs, no
matter where they are in the world.
Our vision is a world where everyone has access to the best
cancer care. Our approach to working towards our vision is set
out in our strategy, ACCESS 2025, of which a core element is our
social sustainability ambition of improving Access to Healthcare
globally. To be able to deliver on our vision in the longer term, we
have identied three additional sustainability focus areas where
we put extra eort: Environmental Action, Business Ethics and
People in Focus. Through Environmental Action we work to
ensure we conduct our business within the boundaries of our
planet. In focus area Business Ethics, we work on embodying
the ethical business standards we have set for ourselves. And in
People in Focus, we work to ensure we always respect human
rights throughout our entire value chain.
Environ-
mental
Action
People
in Focus
Business
Ethics
Access to
Healthcare
To measure the improvements in access to the best cancer
care we have set ambitious strategic targets based on
availability, eciency, and clinical outcome. Availability is
improved by growing the installed base in currently under-
served markets. Patients get better and more ecient care
through clinical adoption of new technology or utilization
ofavailable technology and improved decision-making
support. And through increased patient involvement the
care teams can improve clinical outcomes by deeper and
richer patient-reported insights. All these actions will improve
cancer care. For more information about our strategic mile-
stones see
page 15.
STRATEGIC FRAMEWORK BUSINESS OVERVIEW
11
ELEKTA ANNUAL REPORT 2021/22
Resilience & Process Excellence across the value chain
Values We do what we say | We work as one team | We keep thinking forward
People
Delivered in
a sustainable way
Accelerate
innovation
with customer
utilization in
mind
Be the
customer
lifetime
companion
Drive
adoption
across the
globe
Drive partner
integration
across the
cancer care
ecosystem
A world
where everyone
has access to
the best
cancer care
The strategy and its enablers
ELEKTA ANNUAL REPORT 2021/22
12
BUSINESS OVERVIEW STRATEGIC FRAMEWORK
Elekta’s strategy, ACCESS 2025, is built around four main strategic pillars that shall drive
sustainable protable growth and create the next generation treatment, workows and
customer engagement models.
The strategy – ACCESS 2025
Accelerate innovation
with customer utilization
in mind
We will continue to invest in innovation, both
in hardware and software, to keep driving
the category of precision radiation medicine
forward and to develop new solutions that
help customers elevate standards of cancer
care. We keep innovating with implementa-
tion in mind to drive faster adoption in the
market while also advancing functionality.
Drive partner integration
across the cancer care
ecosystem
We believe that cancer care is best elevated
by bringing together the expertise across
the entire network. We also believe that
there is no one solution to t all and custom-
ers will need tailored solutions to t their
needs. And as the only independent radio-
therapy provider of scale, we have an
important role to play to ensure interopera-
bility so that our customers and their
patients can enjoy best-of-breed solutions
across the cancer care continuum.
Be the customer
lifetime companion
We want to be the preferred and most
trusted partner to our customers through-
out the lifecycle of our solutions. We will
therefore continue developing our service
oering as well as new business models so
we can build stronger relationships with our
customers.
Drive adoption across
the globe
To make sure that patients really do get
access to the best cancer care, we will con-
tinue to drive market adoption. Initiatives
under this focus area include both optimiz-
ing our local presence in each market and
working with governments on, for example,
reimbursement rates.
STRATEGIC FRAMEWORK BUSINESS OVERVIEW
13
ELEKTA ANNUAL REPORT 2021/22
Elekta’s business model is to develop, manufacture and market
innovative solutions for precision radiation therapy, as well as
toprovide services and support for the installed base.
After the installation of the solution one year of war-
ranty follows. To secure continuous treatments and
avoid interruption for the scheduled patients, it is
important to have the right service for the solution.
Elekta has a good attach rate of service contracts
toits installed base.
Together, the installation of solutions and the
service business drive two dierent revenue streams:
upfront and periodical. Today, most devices and
software solutions are paid upfront. Services are
mainly paid periodically based on contracts but also
including occasional service assignments.
Customers are increasingly interested in the con-
cept “as a Service” to gain from lower upfront costs
and always having the latest software. Based on
this demand, Elekta is starting to oer “Software as
a Service” and “Solutions as a Service”. This implies
that there will be a gradual shift towards periodical
fees instead of upfront payment over time. As it
occurs, it will smoothen out revenue and cash ow
more evenly over a longer time period.
Upfront
Periodical
Solutions:
• Device
• Software
• Service
TODAY’S REVENUE STREAM
Solutions:
• Device
• Software
Upfront
Periodical
• “as a Service”
• Service
FUTURE REVENUE STREAM
REVENUE STREAM
Year 0
Solutions revenue
including software,
installation, service
and training
Service revenue
for eld and remote
service, software
license and upgrades
Total
service
revenue
+1
Warranty
+2 +3 +4 +5 +6 +7 +8 +9 +10 +11 +12 +13
Business model to foster innovations
Solutions ~60% of net sales
Service ~40% of net sales
BUSINESS OVERVIEW STRATEGIC FRAMEWORK
ELEKTA ANNUAL REPORT 2021/22
14
Outlook and strategic milestones 2024/25
Elekta’s strategy provides the framework for our pursuit of protable growth
in a sustainable way and are quantied in the nancial outlook.
For sustainability targets see the In-depth sustainability report on
page 41.
Mid-term outlook
Outlook Outcome Comment
•
Despite the pandemic and geopolitical-related
challenges Elekta had a net sales growth rate in
2021/22 of 4% based on constant exchange rates.
InSEK net sales growth was 6%
•
The outlook is set based on an average expected
6–8% market growth based on constant exchange
rates during the mid-term period. In 2021/22 the
market
1)
grew with <4%
Net sales
>7% CAGR
EBIT margin
expansion
Dividend
≥
50% of annual
net income
Availability of care
+300 M people in under-
served markets to get
access via Elekta’s
installed base
Elevation of care
Among Elekta customers:
2x clinical usage of
hypofractionation
4x usage of adaptive
treatments
Participation of care
Among Elekta customers’
patients:
+20% increase of engage-
ment via an Elekta-powered
tool
•
2021/22 Elekta’s EBIT margin decreased compared
to 2020/21. The main reason is a lower gross margin
due to pandemic-driven higher supply chain,
logistics and service costs. For more information
see
page 98
•
The dividend proposal is 2.40 SEK/share to
be paid out in two installments
•
At end of 2021/22 +123 million people in underserved
markets had gotten access via Elekta’s installed
linac base (baseline 2019/20)
•
Increased usage of hypofractionation in most
mature markets as well as increased usage of
adoptive treatments
•
Not quantied on a yearly basis
•
Ongoing higher engagement among
customers patients
•
Not quantied on a yearly basis
Strategic milestones
24/2523/2422/2321/2220/21
4%
7%
24/2523/2422/2321/2220/21
11.3%
13.9%
24/2523/2422/2321/2220/21
79%
50%
24/2523/2422/2321/2220/21
123
59
300
24/2523/2422/2321/2220/21
2x
4x
24/2523/2422/2321/2220/21
+20%
1)
Order value of capital goods, in USD.
STRATEGIC FRAMEWORK BUSINESS OVERVIEW
15
ELEKTA ANNUAL REPORT 2021/22
Creating
responsible value
throughout the
value chain
Elekta’s business provides an important
part of cancer care around the globe.
Collaborations help to secure both
clinician and patient’s need and drive
innovations within radiotherapy based
on sustainable operations with
high-quality suppliers.
The foundation of our long-term success is excel-
lence and sustainability in all our processes
throughout the value chain. We achieve that by
developing our people, being mindful of our stake-
holders’ needs and continuously rening our pro-
cesses to reduce both our costs and environmental
footprint. This focus creates resilience and ensures
we continue to have the resources to inspire hope
for anyone dealing with cancer.
The pyramid icons in each section of the value
chain illustrates the sustainability focus area most
essential for the respective part and refers to the
focus areas described in the pyramid below. For
more information about the addressed sustainabil-
ity issues and goals see
page 43.
R&D
Improving cancer care
through innovation
Elekta’s market-leading position is based on innovations,
both in products and processes, developed in close collabo-
ration with leading researchers and clinics in mature and
emerging markets. Sustainability requirements are set early
in the product design phase.
Our R&D hubs:
•
Informatics solutions in Sunnyvale and St. Louis, U.S.,
and in Shanghai, China, as well as software in Northern
Europe
•
Leksell Gamma Knife in Stockholm, Sweden
•
Brachy in Veenendaal, the Netherlands
•
Linacs and MR-Linacs in Crawley, UK and Beijing, China
Main R&D areas supporting:
1. Personalized precision – decision support and increased
engagement of patients in care pathway
2. Elevated productivity – resource optimization and
mobility of care
3. Integrated informatics – adaptive treatments, workow
eciency, automation and cost-eective devices
SOURCING & MANUFACTURING
Securing stable solutions
Both sourcing and manufacturing operations have
strong focus on quality and we only use high-quality
suppliers to secure stable solutions that provide
the necessary precision. The Sustainable Sourcing
Program shall identify and mitigate any nonconfor-
mities with our Supplier Code of Conduct and drive
change.
Three main manufacturing sites:
•
Crawley, UK (Linacs and MR-Linacs)
•
Beijing, China (Linacs and MR-Linacs)
•
Veenedaal, the Netherlands (Brachytherapy)
80%
of the sourced products
and services come from
approximately...
450
qualied suppliers
around the world.
LOGITICS PLATFORM
Optimized transport through fully digitalized logistics platform
Environ-
mental
Action
People
in Focus
Business
Ethics
Access to
Healthcare
BUSINESS OVERVIEW STRATEGIC FRAMEWORK
ELEKTA ANNUAL REPORT 2021/22
16
14%
of net sales in R&D
investment
>1,800
patents
MARKETING & SALES
Bringing innovations together
with clinicians
With a strong local presence around the world, we are
close to our customers. We have sales in over 120 coun-
tries. In many markets we act with our own employees,
in others, through selected partners. Training and
compliance programs are established to ensure ethical
business conduct. To enhance access in underserved
markets we also oer nancial solutions.
~13%
of net sales through distributors
SEK 18 bn
in gross order intake 2021/22
AFTERMARKET & SERVICE
Providing excellence every day
Through high-quality service and support, we enable
our customers to maximize the lifetime and value of
their investments and provide the best care possible.
A global team supports customers throughout the life-
cycle of the solution. Assisted by the AI-based Elekta
IntelliMax® system, connected to 80 percent of the
installed base, an increased share of the support is
conducted remotely.
650
eld service engineers
160
support specialists
Optimized transport through fully digitalized logistics platform
STRATEGIC FRAMEWORK BUSINESS OVERVIEW
17
ELEKTA ANNUAL REPORT 2021/22
Linac
Neuro
Solutions
Elekta oers leading solutions in both radiotherapy
treatment and oncology informatics systems for
complete oncology clinics.
Oncology
Informatics
Brachy
Expanding and
elevating innovations
Elekta oers leading radiotherapy treatment solutions and complete oncology informatics
solutions for comprehensive oncology departments. With innovations that both elevate
and expand access to care, we contribute to easing the global cancer burden.
Elekta’s oering consists of two distinct segments: solutions and
aftermarket services. Solutions is in turn divided in two subseg-
ments: Oncology Informatics Solutions and Radiotherapy Treat-
ment Solutions. The rst brings together people, workows, and
the information clinics need to deliver quality care and run
smooth operations across the entire oncology space. The sec-
ond subsegment, Radiotherapy Treatment Solutions, consists of
the three business lines: Linac Solutions, Neuro Solutions and
Brachy Solutions. Each business line oers leading radiotherapy
treatment solutions that are optimized for precision, delivering
radiation to the target while minimizing the damage to healthy
surrounding tissue.
The service business provides a large stream of recurring reve-
nues based on long-term service contracts with customers.
Through AI-supported big data analytics, service operations
arebecoming more preventative, reducing unplanned down-
time so that more patients can be treated.
Accelerated pace of innovation
In line with our strategy, ACCESS 2025, investments in research &
development have been accelerated. Focus is set on developing
the MR-Linac platform, projects within the linac family, and
software. As medicine and technology progress, treatment pos-
sibilities continue to expand, resulting in increasingly complex
workows for clinics. Elekta is developing the next generation of
software solutions that will help clinics manage and streamline
these workows, tying the two subsegments within solutions
closer together. We expect to launch new innovative solutions
in2022/23.
At the end of 2021/22, the installed base of Elekta solutions
was around 6,900, of which some 5,000 units were linacs,
MR-Linacs and Leksell Gamma Knife systems.
Services
Elekta delivers high-quality aftermarket services with
a global network, generating recurring revenues.
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18
Oncology Informatics Solutions
Decision support tools that improve
access and elevate care
For more than 30 years our leading oncology information system has helped clinicians
connect with patients and improve treatment outcomes. The right software tools will
raise the standard of care and run clinics operations more eciently.
Oncology is a complex and data-driven discipline. Due to the
wide range of cancers and tumor types, there is no single stan-
dard of care. Treatment plans need to be personalized for each
patient, usually from a combination of radiotherapy, surgery,
and chemotherapy. To manage this complexity and to ensure
continuity in the handovers between all healthcare profession-
als involved, clinics use oncology information systems (OIS)
tohandle patient data and to manage and analyze their own
operations.
Elekta oers the best of breed OIS, MOSAIQ, and the support-
ing ecosystem of digital tools, MOSAIQ Plaza. It works seam-
lessly with all Elekta radiotherapy systems and supports virtually
any other oncology medical device or treatment management
solution.
The OIS is built around a data model specically designed for
multidisciplinary oncology care. With repeated observations of
the same variables over a long time, it enables clinics to contin-
uously evaluate their practices. The role-based software pre-
sents each clinician with everything they need for making preci-
sion treatment decisions, including high-level support, granular
patient data and care pathways based on established treat-
ment guidelines. Developing the pathways tool further with
better visualization and easier decision making on the optimal
treatment strategy is one aspect of the deepened partnership
with Royal Philips signed during the year.
Supporting innovations
The new version of MOSAIQ supports additional radiotherapy
systems, like Elekta Harmony, and has an improved user experi-
ence and added automation workows. Our OIS and analytics
tools have been updated and can provide our customers with
good support to comply with the requirements of the previously
planned new bundled payment system in the U.S.
Kaiku Health is a platform for electronic patient-reported
outcomes (ePRO) and an ecient tool for connecting clinicians
and patients. It works by patients reporting their wellbeing via
an app. The care team can follow each patient and focus their
resources on those whose reporting indicate they need care.
Kaiku and similar ePROs are continually demonstrating
improved survivorship and reduced adverse events resulting
inan elevation of care as well as a reduced burden on acute
treatments. During the year, Kaiku received an ONC Health
ITCertication in the US, which means it can be used to meet
the requirements of various regulatory healthcare programs.
Cloud-delivered bundles
There is growing interest in cloud-delivered software as a service
(SaaS) among healthcare providers. The model moves software
from a capital investment to an operational expense and makes
sure the clinic is always using the latest software version while
beneting from smooth updates and exibility. For many new
clinics this is an advantage, especially in emerging markets
where budgets are smaller and there is greater uncertainty
about future software needs.
We have put together software bundles that align with dier-
ent clinical functionality and deliver them via the Elekta Axis
cloud. This makes it easier, especially for new clinics, to match
software purchases with their needs while getting enhanced
support for cybersecurity. The right software tools will raise the
standard of care through strong decision support, and expand
access by making clinics’ operations run more eciently.
“ Elekta’s pay-per-use model
ts very well with our
oncology business model,
marked by low capex,
cost-eective solutions
that are rooted in the
optimal usage of assets,
and not their ownership. ”
Dr B S Ajaikumar
Executive Chairman, HealthCare Global Enterprises, India
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ELEKTA ANNUAL REPORT 2021/22
Like many, Florencia Escobar enjoys the small things in life,
meeting up with friends or having dinner with her partner.
Relaxing and enjoying these moments after receiving cancer
treatment – in Florencia’s case external beam radiotherapy and
brachytherapy for stage III cervical cancer – can be challenging.
Florencia has the support of Elekta’s software application,
Kaiku, to help her cope. “The Kaiku app really gives me peace of
mind regarding symptoms and my own follow-up,” she says.
Using her phone or tablet, Florencia answers questions and
reports her symptoms in the app so that her medical team at
Leben Salud in Neuquén, Argentina, can follow her condition
and schedule follow-up meetings if necessary.
Kaiku also helps Florencia by automatically sending her
symptom feedback articles. “I nd them very useful, as they
help me to learn about the treatment, the symptoms and how
to manage them. And it’s reassuring to know the information
isreliable – there is a lot of false information on the internet,”
she says.
Experience the dierence:
Kaiku
PILAHUE, ARGENTINA
JUNE 24, 08:15 AM
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BUSINESS OVERVIEW OFFERING
Linac Solutions
Shifting the paradigm
and optimizing workow
Elekta oers a complete range of linac solutions that
both elevates the standard and expands access to care.
Linear accelerators, or linacs, are the cornerstone of radio-
therapy departments, treating a wide range of cancer tumors.
Patients receiving care with a linac usually only visit the clinic
to receive treatment and spend the rest of the day at home.
Elekta’s linac solutions are designed to help clinicians raise the
quality of care by tailoring treatments to each patient while
stillimproving productivity so that more patients can receive
treatment.
Due to an increasing number of patients as well as budget
and personnel constraints, clinics are increasingly focusing
on optimizing operational eciency. This means that integra-
tion and streamlining of clinical workows have become just as
important as choosing the optimal tool for each individual task.
Shifting the paradigm
Elekta’s linac oering ranges from the very cutting edge of
technology to value solutions.
At the top of the range is Elekta Unity, our MR-Linac, which
isequipped with a diagnostics grade MRI. The introduction of
Unity marked a paradigm shift in radiotherapy as the superior
image quality of the MRI provides clinicians with clear visibility
even in notoriously dicult to see soft tissue such as the abdo-
men. The MR-Linac consortium believes that all the nine most
common cancers globally would benet from Unity’s improved
visualization and treatment adaption: lung, breast, prostate,
colon, stomach, liver, rectum, esophagus, and cervix
1)
. 25 per-
cent of all radiotherapy should benet from a MR-Linac
treatment in the future.
1)
https://gco.iarc.fr/today/data/factsheets /populations/900-world-fact-sheets.pdf
OFFERING BUSINESS OVERVIEW
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ELEKTA ANNUAL REPORT 2021/22
Wayne Crawley, 73, led a relaxing life, spending his time on his
hobbies – shing, golng and cooking – and family when he
was diagnosed with prostate cancer. After some searching,
he found an oncologist at a cancer center in New Jersey that
he connected with. “He was great. It was like talking to family,”
he says.
With the treatment options explained to him, Wayne opted
for radiotherapy on the hospital’s new Elekta Unity MR-Linac.
“I understood this was the latest and greatest system, and it’s
proven true,” Wayne says. “Everything was fantastic. I thought
it might be painful or at least uncomfortable, but the only
slight discomfort was lying on the hard couch and the sounds
of the machine. But you quickly get used to these; I actually fell
asleep during treatment a couple times.”
And the side-eects from the treatment have been minimal.
“I was visiting the bathroom a little more frequently for the rst
one or two weeks, but other than that, nothing,” he says.
Experience the dierence:
Unity
JERSEY CITY, THE UNITED STATES
JUNE 24, 10:15 AM
ILLUSTRATIVE PICTURE
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The ability to see clearly and to continuously, in real-time,
adapt the treatment plan to changing tumor anatomy, will
spare more healthy tissue; enable the managing of hard-to-
treat cancers in dicult anatomical sites such as rectum, liver,
and pancreas; and facilitate the use of more ecient treatment
schedules such as hypofractionation.
The MOMENTUM study was initiated in 2019 to provide an
infrastructure for data to both develop and assess the best clini-
cal practices with Unity. Participating institutions can access
clinical and technical data from a large, shared repository,
which enables researchers to learn from all patients treated
with Unity. Compiling clinical evidence is important to help radi-
ation oncologists and physicists optimize their practice and key
to obtaining enhanced and stable reimbursement rates in line
with the additional clinical value brought by Unity.
A major milestone was achieved at ESTRO 2022, when the
MOMENTUM study reported on the experience of over 1,800
patients demonstrating utilization in a wide variety of tumor
types, all with a promising side eect prole. We continue to
see studies where new concepts are explored and are starting
to see more studies on clinical safety and eectiveness. Focus
going forward is on studies that demonstrate the clinical superi-
ority of Unity, which will then be used to establish dierential
reimbursement schemes.
Common development areas
Versa HD is in the high-end segment for traditional linacs.
Sub-millimeter precision together with Elekta’s treatment plan-
ning system, Monaco, and advanced imaging enable clinics to
transition to hypofractionated treatment schedules. These
include stereotactic radiosurgery (SRS) and stereotactic body
radiation therapy (SBRT), which can t into standard 15-minute
treatment slots.
Understanding and handling motion, for example when
breathing, is a big focus area for both Unity and Versa HD.
WithVersa HD comes advanced 4D imaging capability, and
forUnity updates during the year included new features in
comprehensive motion management. Another area of com-
mon interest is online adaptive treatment, which is standard
onUnity and under development for traditional linacs.
Increasing productivity
Harmony is a high-productivity linac as well as Elekta’s newest
linac on the market. It brings a completely redesigned in-room
experience, especially for the time-consuming patient setup
Unprecedented
visibility
Truly precise and
personalized
radiotherapy
Diagnostic quality
MR imaging
Unparalleled insight,
visibility and control
Real-time adaptive
treatment in presence
of motion
Visualization Precision
Data &
insights
Productivity
Improved
outcomes
Unity community
Unique approach to innovation with hundreds of clinical partners
The benets of Elekta Unity
“ When I know my patient
is going on the MR-Linac,
Ifeel a sense of relief. My
patient is getting the best
care possible and I will
know what’s happening
tothe tumor through that
journey. That’s an over-
whelming feeling, not
onlyfor the physician,
butalso for the patient. ”
Dr Arjun Sahgal
Deputy Chief, Sunnybrook Health Sciences Centre,
Toronto, Canada
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ELEKTA ANNUAL REPORT 2021/22
23
process which Harmony’s FastTrack system can reduce by up
to50 percent. Overall, treatment times can be reduced by up to
25 percent, and some sites are treating up to 70–80 patients a
day, meaning clinics can treat more patients with the same
stang, improving access to radiotherapy.
It is available in two congurations: Harmony and Harmony
Pro. The Pro model is aimed at mature markets and the regular
version at emerging greeneld markets. With support for the
new in-room workow added to Elekta’s oncology informatics
solution, MOSAIQ, there are signicant benets of Harmony in
enabling both mature and emerging markets to treat more
patients without compromising on precision or clinical versatility.
Cloud-based analytics
ProKnow is our cloud-based collaboration platform for distribut-
ing tasks and for measuring and improving patient outcomes,
both important aspects of value-based healthcare. All patient
radiotherapy data is centralized in a secure web repository and
accessed via a simple and intuitive user interface. Tools like
peer-review and plan evaluation can be used to maintain quality
and consistency in clinical practice, while tools for big data
aggregation and analytics can improve practices over time.
Thebuilt-in automated workows, such as auto-contouring,
canbe further enhanced by customized automated scripts and
third-party analytics.
How it works: Linac
Image guided radiotherapy
Most linacs include an integrated CT imaging system for visualization and positioning of
the tumor target while the patient is in the treatment position. Elekta Unity, MR-Linac,
replaces this CT imaging with a diagnostic-grade MR imager. MR images are generated
immediately before and during treatment which enables real-time adjustments of the
radiation beam to the patient’s anatomy at the exact time of the treatment.
Cone beam CT
MR-Linac
The linear accelerator (linac) uses high power microwaves (like radar) to accelerate elec-
trons to nearly the speed of light where they hit the target to produce an intense beam of
radiation. The shape, direction and intensity of the radiation beam is automatically con-
trolled in accordance with a treatment plan, which has been optimized to deliver the
required dose of radiation to the individual patient’s tumor, while minimizing the impact
to the surrounding healthy tissue.
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When it was time for a cancer clinic in Clermont-Ferrand,
France, to upgrade one of its two linacs in 2021, they opted
forElekta Harmony Pro.
“We had signicantly improved our volume or cancer cases
over the last four years, but we knew that a linac like Harmony
would allow us to treat even more patients,” says Dr Vivien
Fung, radiation oncologist at the clinic in Clermont-Ferrand.
“Plus, it would give us more capacity to meet the increasing
demand for hypofractionation.”
In October 2021, the clinic began treating patients with a
brand-new Harmony Pro, complementing their existing Elekta
Versa HD linac. From the beginning, the clinic was able to treat
all major tumor types on Harmony. After a month, 70 patients
a day were receiving treatments on Harmony alone, ranging
from conventional treatments to hypofractionation. Dr Fung
adds that they chose the Pro version of Harmony to
get High Dose Rate mode, like Versa HD, to enable ecient
stereotactic delivery and increase the number of such treat-
ments performed.
The clinic’s data show that setup time on Harmony is about
20 percent lower than on conventional linacs, but the clinic
thinks they can improve further.
“We believe that with more experience on this linac we
candecrease patient setup time even more, while increasing
eciency and productivity,” says Dr Fung.
Experience the dierence:
Harmony
CLERMONTFERRAND, FRANCE
JUNE 24, 02:15 PM
ILLUSTRATIVE PICTURE
OFFERING BUSINESS OVERVIEW
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ELEKTA ANNUAL REPORT 2021/22
“ I had a unique experience
and learned a lot both by
observation and through
verbal communication. ”
Mulape Mutule Kanduza
Chief Medical Physicist, Cancer Diseases Hospital,
Lusaka, Zambia
Brachy Solutions
A very precise and economical
treatment option
Brachytherapy is a cost-ecient treatment modality for many cancer types.
As the market leader, Elekta works to improve both access and standard of care.
High dose rate brachytherapy is a very precise form of radiother-
apy where a radioactive source is temporarily inserted into the
body, inside or close to the tumor. Most brachy patients receive
it in combination with external beam radiation, for example
with a linac, but it can also be used as a standalone treatment.
It is standard care for cervical cancer and clinically eective, as
well as an economical treatment option, for a range of dierent
cancer types such as prostate, breast, skin and rectal.
Elekta is the undisputed market leader in the segment of high
dose rate brachytherapy, with around two thirds of the market.
The oering consists of afterloaders, treatment planning soft-
ware and a wide range of applicators. The latest innovation,
Elekta Studio, makes it possible to oer a complete image-
guided brachytherapy solution, as an in-room mobile wide-
boreCT system (ImagingRing) has been added.
Clear advantages
In-room imaging has very clear advantages. After the applica-
tor has been inserted, patients are usually transported to
another room for imaging, which takes time and carries dis-
placement risk that aects the quality of treatment, and can
bestressful for both patients and clinicians. With ImagingRing,
images can be obtained in-room without transporting the
patient, improving the treatment delivered, patient comfort,
and enabling a greater throughput of patients for the clinic.
Feedback from the early adopters has been highly positive.
Dierent clinics will now be optimizing their workows and com-
piling real-world evidence about the benets of Imaging Ring.
Clinical evidence will make the advantages clearly visible and
increase market demand.
A near-term focus has been to get Elekta’s large product
portfolio with over 200 applicators approved under the new
stricter EU Medical Device Regulation. Future innovation eorts
will continue to focus on making brachytherapy faster and eas-
ier to perform, and on bringing imaging to the next level with
better integration and working towards image-guided adaptive
treatments.
Access to training
A limiting factor for expanding the use of brachytherapy is a
shortage of trained sta. To help alleviate this, Elekta runs the
BrachyAcademy, the world’s largest educational resource for
brachytherapy. Since brachytherapy usually involves a minimally
invasive procedure, it may take some time for clinicians to
become procient and fast enough at performing it for the reim-
bursement to fully cover the clinic’s cost. The BrachyAcademy
educates clinicians by peer-to-peer training, improving the eco-
nomics for the clinic, while also spreading the use of brachyther-
apy. Elekta and its 22 BrachyAcademy partner hospitals world-
wide have trained over 2,500 clinicians through workshops and
observational visits.
The World Health Organization has presented a global strat-
egy to eliminate cervical cancer as a public health problem by
pursuing vaccination, screening and treatment. The aim is to
drastically reduce the incidence of cervical cancer and to expand
access to treatment. As the market leader, Elekta is committed
to increasing access and to training medical sta globally, espe-
cially in underserved markets where it is needed the most. That is
why the BrachyAcademy is expanding in low- and middle-income
countries, with focus on developing BrachyAcademy partners for
gynecological cancer treatments in new regions.
How it works: Afterloader with an applicator
A radioactive source, the size of a grain of rice, is temporarily placed inside or close to the
tumor via an applicator. Treatment planning is done after the applicator has been inserted
and an image has been acquired via CT or MRI. Then a carefully planned high dose is delivered
very precisely with the afterloader that remotely steers the source in the patient’s body. The
entire treatment is typically delivered in one to four fractions during one stay at the hospital,
enabling the patient to return home the same day or the day after.
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The Sidney Kimmel Cancer Center (SKCC) – Jeerson Health,
located at the Thomas Jeerson University Hospital in
Philadelphia, was the rst clinic in North America to acquire
Elekta Studio, which includes ImagingRing, a mobile CT
scanner for brachytherapy.
“This state-of-the-art, mobile-CT technology brings
real-time imaging directly to the patient, thus reducing
theamount of time each procedure takes, while improving
treatment accuracy and enhancing patient safety,” says
DrPramila Rani Anne, Director of Clinical Operations,
Department of Radiation Oncology.
To make sure the radiation source is positioned correctly
inside the body, images are obtained with a CT scan. Until
the advent of ImagingRing, this meant moving the patient
to another room, risking displacement of the applicator
orneedles, and delaying the treatment time. For patients
movements during the treatment can be stressful. There-
fore, Elekta Studio not only increases eciency but also
patient comfort.
“ImagingRing underscores our commitment to patient-
centered care, ensuring that we are able to provide every
individual with the latest treatment options while also
providing a more convenient experience,” says Pramila.
Experience the dierence:
Elekta Studio
PHILADELPHIA, THE UNITED STATES
JUNE 24, 04:15 PM
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ELEKTA ANNUAL REPORT 2021/22
OFFERING BUSINESS OVERVIEW
How it works: Leksell Gamma Knife
Neuro Solutions
Minimally invasive treatment
with the highest precision
The expertise to protect what matters most with a strong and
specialized value proposition for stereotactic radiosurgery.
The core of Elekta’s neuro oering is Leksell Gamma Knife (LGK),
the most proven and well-documented stereotactic radio sur-
gery (SRS) device on the market. SRS is a safe and cost-ecient
treatment option for neurological diseases and brain metasta-
ses, and a gentler alternative to open surgery and conventional
radiotherapy. It is non-invasive, and usually has no side eects
and no convalescence or rehabilitation requirements for the
patient. Treatment is normally performed in one fraction and
patients can return home the same day.
The main advantage of LGK is the very sharp dose fall-o that
ensures minimal dose to surrounding healthy tissue. The opti-
mized workow, which requires minimal quality assurance, is
highly ecient and enables some centers to treat more than
1,500 patients per year with one LGK.
While SRS can also be performed on modern linacs, LGK oers
superior accuracy and shorter treatment times. Clinics that
have invested in LGK nd that they can increase the throughput
of brain patients while freeing up time on the linac, improving
overall access for patients and the economics for the clinic. The
installed base of LGKs is around 360 and growing.
The latest Neuro solution is the state-of-the-art Elekta Esprit,
which was launched at ESTRO in May 2022. Built on decades of
development, Esprit takes SRS to the next level. This latest and
most advanced system will oer signicantly faster automated
treatment planning for clinicians, more personalized and
patient-friendly treatments, and a degree of precision able to
protect the mind and the person. With submillimeter accuracy,
it can target even the smallest, most challenging intracranial
tumors and lesions while protecting essential healthy tissue. Its
new platform will also serve as a perfect hub for coming innova-
tions and future updates.
Lightning-fast
LGK comes with its own planning tool, Leksell GammaPlan,
which is fully integrated with and tailored to LGK. It is also avail-
able remotely, a feature which has proven invaluable during
thepandemic and has the added advantage of allowing easier
collaboration between clinicians and departments.
The treatment optimizer Leksell Gamma Knife Lightning is a
software designed to reduce planning and treatment delivery
times while ensuring that even novice planners can deliver
high-quality plans. The automated process reduces planning
time by up to 80 percent, increases plan quality, and reduces
beam-on-time by up to 50 percent. This solution has been
described as game-changing by customers, and the product
has seen an enthusiastic uptake with 160 installations in just
twoyears.
Immobilization options with patient comfort
There are currently two immobilization options: a frame and
amask. The latest frame, Leksell Vantage, has an open face
design, which greatly improves patient comfort while also pro-
viding better access for anesthesia. It is easy to assemble and
the disposable pins xing the frame eliminate the need for steril-
ization. The innovative construction secures improved image
quality through dramatically less image distortion, which
speeds up the imaging process while allowing clinicians to see
more anatomy. In addition to LGK, the headframe is part of
astereotactic system that is used for performing stereotactic
surgical procedures.
Stereotactic radiosurgery is specically developed to treat neurological conditions. With
Elekta’s Leksell Gamma Knife, up to 192 low-intensity radiation beams simultaneously con-
verge with high accuracy, to deliver a powerful radiation dose to the target. Target volume
and shape determine the number of beams used. Advanced stereotactic imaging and a
high-denition motion management system enables real-time adaptive treatment.
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Service
Preventive maintenance increases
availability for patient treatments
We invest in digitalization to be a strong life-time companion to our customers. By connecting
and collecting data from our machines we can act before breakdowns happen, enabling
customers to plan their downtime and minimize operational disruptions.
Service plays an integral part in the value that Elekta and clini-
cians provide for patients, directly via maintenance and repairs
that keeps the solutions running, and through an expansion in the
service portfolio with more value-added services. With preventive
maintenance, clinical downtime can be both minimized and
planned, making sure that patients receive their treatments as
scheduled and that clinics’ operations run eciently.
Indirectly, service and support of our installed base is the corner-
stone of the close relationship between clinics and Elekta. Together
with the stable recurring revenue stream from the service business,
it forms a foundation for continued investments in research and
development of Elekta’s solutions.
Our portfolio of services, Elekta Care, ranges from installation
of a new machine to ongoing maintenance, training, and tech-
nology updates during the lifetime of the product. We also oer
opportunities to participate in knowledge sharing through our
global network of service experts.
IntelliMax with patented algorithms
The bedrock of our preventive maintenance program is Elekta
IntelliMax. It collects machine data from more than 22,000 con-
nected Elekta products, including 80 percent of our installed
baseof linacs, and performs analyses using AI-based patented
algorithms to detect issues before they impact the product’s
availability.
For every issue detected by IntelliMax, an average of eight
hoursof clinical downtime can be avoided
1)
. Through IntelliMax,
more than 20,000 hours of clinical downtime are avoided by our
customers each year.
Leading remote capabilities
Early investments in digitalization have enabled us to develop lead-
ing remote support capabilities. We have over 650 eld technicians
performing maintenance and repairs, which are supported by
more than 160 support specialists providing remote assistance in
local languages. Where eld technicians used to rely solely on their
own expertise and experience, they can now count on the support
from our remote specialists and data from Elekta IntelliMax. In
2021/22, 68 percent of service cases were solved with remote sup-
port, avoiding more than 50,000 hours of clinical downtime.
Automated spare part logistics
Digitalization has also enabled intelligent automation of our
spare parts logistics. When the system detects a potential
upcoming issue, the required spare part is automatically ordered
and sent from the closest warehouse. Spare parts are automati-
cally distributed across our warehouses according to analytics of
where they are most likely to be needed. The same analytics also
provide insights into when spare parts need to be restocked.
This automation has, together with strong eorts from the
logistics team, enabled us to keep our customers supplied with
the necessary parts throughout the pandemic.
Developing the service oering
Continued investments in digitalization will improve our capabil-
ity to deliver and to launch new services. Currently we are looking
to expand our service portfolio by oering more value- added
services, such as dosimetry, physics, and workow consultancy.
We are also increasing our remote support further by standardiz-
ing and optimizing the remote process, and creating visual aids
to improve communication. We see an increased demand from
the market, and together with our partners we are enhancing
our service oering.
1)
Hypothetical case based on a conservative average of three patients treated per hour per
linac, multiplied by the average clinical downtime avoided per IntelliMax detected issue.
“ IntelliMax appealed to us,
not only because it would
alert our support team of
any current system errors,
but because it would detect
issues weeks before they
occur. ”
Phattanapong Saenchon
Chief Physicist, Sakon Nakhon Hospital, Thailand
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ELEKTA ANNUAL REPORT 2021/22
Geographical
overview
1)
Share of Elekta’s total order intake 2021/22.
Americas
1)
30%
EMEA
1)
39%
APAC
1)
31%
The demand for cancer care is expected to increase as cancer
incidence continues to rise all over the world. The challenges
from the pandemic diminished as the year proceeded with
improved access to hospitals reaching more normalized
installation levels but still dierent investment appetite among
the geographic markets.
Delayed cancer screening and diagnosis due to pandemic-
related restrictions and re-prioritizations have led to a pent-up
demand in cancer care. Several national cancer care programs
have been activated during the year to battle the demand.
Later in the year, risk of component shortages arose and new
challenges emerged. Both the war in Ukraine and rising ina-
tion rates have led to higher costs in addition to already high
logistics and supply chain costs as well as delays and market
cautiousness. Despite these short-term eects, the underlying
growing need for radiotherapy treatment persists.
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BUSINESS OVERVIEW GEOGRAPHICAL OVERVIEW
Americas
Focused on the
entire cancer care
continuum
Market development during 2021/22
U.S. customers’ budgets did not return to pre-pandemic
levels and construction projects on customer sites were de-
layed due to elevated building costs emerging from supply
chain issues and ination. However, towards the end of the
year we saw a boost in demand.
Latin America continued to be impacted by Covid-19.
Government funds were diverted to managing new waves
of the pandemic, and vaccine rollouts caused delays
throughout Latin America. Unfavorable exchange rates and
soft economics also delayed both demand and access to
customers in emerging markets in the region.
Market outlook
Cloud services and SaaS structures are accelerating across
all industries in the U.S. and at the same time consolidation
among healthcare providers is driving demand for inte-
grated and standardized software and hardware solutions.
Overall, there is a growing importance of software integra-
tion in the radiation oncology space as software advance-
ments change the workow and roles for care manage-
ment, particularly in treatment planning and oncology
informatics systems. Customers are looking for solutions
to support the entire cancer care continuum and involve
the patient in their care journey. There is also an increased
interest in the combined treatments of immunotherapy
and radiotherapy. The change in the competitive landscape
is expected to drive a closer connection between radiation
oncology and diagnostic imaging.
The reimbursement change to bundled payment, planned
for in the U.S., is on hold until further notice. As the inevita-
ble migration towards value-based healthcare takes place
in the U.S., demand for technologies that enable hypo-
fractionation keep growing. This shift leads to a decrease
in average treatment sessions per patient, but as cancer
incidence rises and more cancer types are treated with
radiotherapy, long-term demand is expected to remain
intact. This, combined with the expectation that the emerg-
ing markets of the region will grow steadily, leads to an
overall positive market outlook for the region.
Solutions, 43%
Service, 57%
% of total net sales, 49%
employees in region
>670
order development
1), 2)
–2%
net sales development
1)
7%
Solutions, 43%
Service, 57%
% of total net sales, 49%
1)
Compared to previous year based on constant exchange rates.
2)
Includes the largest deal ever in the comparing year.
GEOGRAPHICAL OVERVIEW BUSINESS OVERVIEW
31
ELEKTA ANNUAL REPORT 2021/22
Market characteristics
U.S.
• World’s largest radiotherapy market
• Customers predominately private
• A replacement market
• High focus on value-based healthcare and new
technology
• World’s highest healthcare cost per capita resulting
inpublic interest in eciency and reimbursement
Canada
• Publicly run healthcare with government
and provincemaking purchase decisions
• Primarily a replacement market
• High interest in advanced technology
Latin America
• A combination of private and public customers
• Low access to radiotherapy driving greeneld
investments
• Weak reimbursement systems
• Rapidly growing aging population
• Large healthcare groups acquiring smaller clinics
EMEA
Recovery supported
by health care
programs
Market development during 2021/22
Covid challenges in Europe decreased during the year and
most countries within the region had recovered from the
pandemic at year-end. As the pressure from the pandemic
eased, large cancer care programs were able to shift gear.
EU's Beating Cancer Plan and resilience fund (Recovery and
Resilience Facility) were activated, which resulted in the start
of large public tenders for replacement investments to mod-
ernize the installed base in Europe. Longer-term these funds
shall harmonize cancer care within the EU. At the same time
supply chain challenges accelerated and in the last quarter
the war in Ukraine impacted market stability and disrupted
cancer treatments. In the Middle East and Africa, glimpses of
recovery were seen as actions from public-private partner-
ships surfaced.
Market outlook
Demand in Western Europe is driven by national healthcare
programs and their shift towards cancer care (e.g. screening
programs for lung cancer), and an increased focus on multi-
disciplinary cancer care and combination therapy. In Eastern
Europe, the resilience fund will drive national cancer programs
and market growth. Demand for high-end solutions is in-
creasing as access to resilience funds is enabled and hospitals
in Eastern Europe seek clinical expertise from Western Europe
and the U.S. In the Middle East and Africa, extended pub-
lic-private partnerships will contribute to market recovery and
there is a focus on driving eciency to recover from pandem-
ic-related delays in treatment and modernizing the installed
base. In the Gulf region funds are directed to reverse the
outow of medical tourism by creating self-sucient national
radiotherapy facilities with help from excess budgets resulting
from the oil price surge. The revival of medical tourism is also
driving the demand for high-end solutions, like the MR-Linac.
The war in Ukraine and the sanctions imposed on Russia
and Belarus are disrupting supply chains and cancer treat-
ments in Europe and increasing market concerns. At the same
time, regional healthcare investment initiatives within EMEA
are shifting to cancer care to address the growth in cancer
prevalence and incidence. In addition to ghting the pan-
demic-driven pent-up demand in cancer care, investments in
cancer screening will also enable more early-stage patients
to benet from radiotherapy. Especially in highly underserved
markets like Africa, where access to cancer care is lacking,
increased detection of cancer implies a substantial long-term
growth potential.
Americas, continued.
See page 96 and Note 5 for Elekta’s
performance during the year
“ U.S. customers shorten
courses of treatments
and treat more indica-
tions in adaptive ways. ”
Carlos Castilleja
Executive Vice President Region Americas, Elekta
BUSINESS OVERVIEW GEOGRAPHICAL OVERVIEW
ELEKTA ANNUAL REPORT 2021/22
32
order development
1)
12%
net sales development
1)
2%
employees in region
>640
“ Elekta has a strong
market position in
Europe with several
new long-term cus-
tomer partnerships. ”
Market characteristics
Western Europe
• Mainly public customers
• Private sector growing steadily
• Customers interested in long-term partnership
agreements
• A replacement market
• Focus on new technology and eciency
• Increasing demand for service
Eastern Europe, Middle East and Africa
• An expansion market
• Investments often funded by national healthcare
programs
• Medical health tourism drives adoption of new
technology
• Around half of market in Middle East and Africa public
See page 96 and Note 5 for Elekta’s
performance during the year
Solutions, 61%
Service, 39%
% of total net sales, 37%
Solutions, 61%
Service, 39%
% of total net sales, 37%
1)
Compared to previous year based on constant exchange rates.
Ardie Ermers
Executive Vice President Region Europe, Elekta
GEOGRAPHICAL OVERVIEW BUSINESS OVERVIEW
33
ELEKTA ANNUAL REPORT 2021/22
order development
1)
1%
net sales development
1)
4%
APAC
High growth
potential
Market development during 2021/22
Despite negative impact from Covid-19 on the Chinese
market, the demand for radiotherapy, and especially hypo-
fractionation, increased. The development was driven by the
continued improvement of the Chinese healthcare system,
which generated growth opportunities for radiotherapy. The
Made in China 2025 policy, aiming to upgrade Chinese indus-
tries from labor-intensive manufacturing into technology-
intensive powerhouses, intensied the importance of local
presence in a broader perspective.
The Indian market continued to grow, mainly through
large private investments, since government funding divert-
ed to Covid-related spending and medical tourism decreased.
In Southeast Asia, where medical tourism has been an
important growth driver, the impact of the pandemic was
profound and the recovery lagged due to infrastructural
challenges, regulations and repeated lockdowns.
The Japanese customers had a cautious attitude due to
the pandemic and strict international border control, which
challenged access and pace of business, although public
spending remained resilient. In Australia, a diversion of gov-
ernment spending and a conservative border control slowed
down the market in both the public and private sector.
Market outlook
China’s zero-Covid strategy continues to impact short-term
market growth, and in the long term the Made in China
2025 policy will favor domestic players. At the same time,
business opportunities arise from public eorts to increase
cancer survival rates by expanding the national healthcare
system to more rural areas. Overall, the huge growing cancer
burden in combination with a growing economy conrms
China’s long-term growth potential.
In India public investments are estimated to increase short
term, even though the driving private sector is expected to
recover faster. Fast growing suburbs, privatization, increased
private-public partnerships and medical tourism will be the
engines of long-term growth, at the same time as custom-
ers’ orientation indicates somewhat harder competition
from local providers. In Southeast Asian markets, demand
will resume progressively as borders open and the latent
medical tourism starts to pick up.
Both the resilient public segment and the recovering pri-
vate segment are likely to drive growth in Japan as replace-
ment investments are expected to increase. In Australia,
reimbursement changes may delay new technology invest-
ments, but in the end, also stimulate technology upgrades,
and in rural areas the need for greeneld expansion invest-
ments persists.
employees in region
>770
Solutions, 73%
Service, 27%
% of total net sales, 34%
Solutions, 73%
Service, 27%
% of total net sales, 34%
1)
Compared to previous year based on constant exchange rates.
BUSINESS OVERVIEW GEOGRAPHICAL OVERVIEW
ELEKTA ANNUAL REPORT 2021/22
34
Market characteristics
China
•
An expansion market, but increasing replacement
investments
•
Customers both public and private
•
Increasing demand for hypofractionation
•
Lack of professionals drives demand for
comprehensive radiotherapy solutions
India
•
Underserved market with growing need for local
high-quality radiotherapy treatments at low cost
•
Customers mainly private
•
Low healthcare spending as percentage of GDP
•
Important destination for medical tourism
Japan
•
A replacement market
•
Expansion potential as only 25–30 percent of cancer
patients receive radiotherapy
•
High penetration of Leksell Gamma Knife systems
Other markets
•
Underserved markets:
o
High and growing cancer incidences, increasing life
expectancy, more eective cancer diagnostics
o
Lack of qualied professionals
•
Mature markets:
o
High cancer care capacity
o
Quick to adopt new technology
See page 96 and Note 5 for Elekta’s
performance during the year
“ Cancer care and radio-
therapy continue to be
an important area in
expanding the Chinese
health system. ”
Anming Gong
Executive Vice President Region China, Elekta
GEOGRAPHICAL OVERVIEW BUSINESS OVERVIEW
ELEKTA ANNUAL REPORT 2021/22
35
Elekta’s two-dimensional
ERM process:
• “Top-down” – designed to distill insights and provide clarity on the
most important risk areas, supporting risk-informed decisions at
the executive level and enabling proper risk oversight by the Board
of Directors.
• “Bottom-up” – ensuring a consistent, comprehensive and group-
wide risk identication and prioritization of important risks. Risks
are evaluated on the basis of impact and probability and the level
of riskpreparedness.
Top-down
Methodology provides clarity on key risks
at group level and enables proper risk
oversight by the Board of Directors.
Bottom-up
Methodology ensures consistent and com-
prehensive risk identication and prioritiza-
tion across the company. Risks are evaluated
on the basis of impact and probability and
level of preparedness.
Risk management linked
with strategic planning
Elekta operates in a highly competitive and regulated industry
and a strong local presence leave us open to such risks as
threats, uncertainties or lost opportunities relating to current or
future operations or activities. Sound practices for risk manage-
ment are an essential element of our culture, corporate gover-
nance, strategy development, and operational and nancial
management. We strive to maintain a culture of individual
accountability, where everyone factors in risk in daily decision
making so that the right level of risk is being assumed.
Clear accountabilities at all levels
The rst level of control consists of our employees who perform
the day-to-day activities within the boundaries set by the Exec-
utive Management, and ultimately, the Board of Directors.
These boundaries ensure that the actions of a single individual
will not result in disproportionate risk or missed opportunities
forthe entire company, resulting in not achieving Elekta’s stra-
tegic goals. Elekta’s employees and their managers own all risks
related to their business operations and are expected to man-
age these by maintaining internal controls and risk control pro-
cedures. Every employee is expected to comply with internal
policies and procedures and applicable laws and regulations.
Elekta’s support functions, such as Finance, IT, Human Re-
sources, Legal & Compliance and Regulatory Aairs & Quality,
form a second control level and carry out various riskmanage-
ment and compliance activities to support and monitor the
rstlevel of control. Elekta’s independent internal audit function
constitutes a third and nal level of control reporting to the
Audit Committee on the eectiveness of therisk management
processes and internal control system.
Risk management governance
The Board of Directors is ultimately responsible for the gover-
nance of risk management and control systems. The President
and CEO, assisted by the Executive Management, is responsible
for ensuring there is a common and ecient risk management
process in place. Support functions provide guidance on gover-
nance, risk management and internal control.
Risk management linked with strategic planning
Elekta has an established Enterprise Risk Management (ERM)
framework aligned with the strategic planning process. A
group-wide overview of all Elekta’s risks is undertaken twice
ayear, using a common risk identication and rating method-
ology, providing a basis for decision-making and prioritization
aswell as ensuring appropriate levels of control.
Crisis management and response at group level
To ensure eciency in Elekta’s ability to successfully respond
to disruptive events at group level and continue business
operations, a number of risks deemed to have a major im -
pactat group level are described in Elekta’s risk universe on
page 37 and in
Note 2 concerning nancial risk manage-
ment. Elekta’s risk universe is divided into four risk categories
and 28 aggregated risk areas where impact, probability and
riskpreparedness are tracked and trended on a yearly basis.
Covid-19
As a response to Covid-19 a global crisis management and
resilience response plan was early established. Elekta is running
a set of well-coordinated global programs focusing on employee
well-being and safety, ensuring sustainable nancing and
stable cash reserves, as well as continuously improving our
processes with more innovation, automation, and digitalization.
Impact of Covid-19 is also seen in global logistics and sourcing
today and this is managed through a cross-functional task force
that is continuously monitoring and taking measures to counter
any negative eects on our customers.
Insurance as a risk management tool
Where identied risks cannot be avoided, mitigated or accept-
ed, risks are being transferred through insurance where possible.
Elekta’s insurable risks are covered through global insurance
programs tailored to transfer risks associated with property and
BUSINESS OVERVIEW RISK MANAGEMENT
ELEKTA ANNUAL REPORT 2021/22
36
business interruption, transportation, project execution,
business travel, cyber- and liability risks.
Elekta’s risk universe
Elekta has classied risks in four broad categories to facilitate
the discussion around risk appetite and risk response.
Operational risks
Operational risks are those directly attributable to business oper-
ations that Elekta largely can manage and prevent. They have a
negative impact on our nancial performance and reputation.
Risk factors
We manufacture and sell medical equipment that is subject to
many laws and regulations and commercialization is dependent
on certication and approvals at local levels. Elekta must fulll
rigorous demands in accordance with several rules and product
safety standards, e.g. EU Directive 93/42/EEG on medical prod-
ucts, FDA’s demands on quality systems, as well as a number
ofdomestic directives and rules. Our portfolio is characterized
by large investments in research and development leading to
patent and other intellectual property rights, which need to be
safeguarded from third party infringement or improper use. We
operate in an industry in which there is an increased demand for
using and analyzing personal data or treatment data in order to
further develop our product portfolio. This needs to be done in
accordance with privacy laws worldwide, and appropriate mea-
sures to protect the data against damage, manipulation and
undue interference need to be considered. Our business opera-
tions depend on many advanced IT systems and solutions that
need to be protected against damage and undue interference
while also adhering to various data privacy and security laws
and regulations worldwide. We depend on successful relation-
ships with business parties across the entire value chain, espe-
cially suppliers of critical components. In many markets, we rely
on an external network of distributors and agents. There is a
worldwide trend to strengthen anti-corruption laws, and
healthcare equipment manufacturers are particularly exposed
in this area selling in many compliance-challenged markets with
a growing need for access to equipment. Our ability to attract
and retain qualied personnel and management is of great
importance and has a signicant impact on the future success
of Elekta. Increasingly, companies are being judged by their per-
formance on a variety of environmental, social and governance
matters and our ability to meet external expectations on these
RISK MANAGEMENT BUSINESS OVERVIEW
37
ELEKTA ANNUAL REPORT 2021/22
matters may impact our business and reputation of long-term
sustainability performance.
Risk approach
The focus is on avoiding or mitigating these risks in a cost-e-
cient way. This is done through active risk prevention through
strong corporate governance controls and business processes
to guide the organization’s behavior and decisions towards
desired norms.
Strategic risks
Strategic risks are risks that Elekta voluntarily assumes in order
to generate superior returns from the strategy.
Risk factors
Our industry is characterized by relatively swift technological
alterations with advances in industrial know-how and we rely
on close collaboration with clinicians to develop new and
improved treatment methods according to their needs. We use
increased precision to expand the role of radiotherapy, e.g. with
innovations such as our MR-Linac, driving paradigm shifts in
precision radiation therapy and digital patient-centric solutions
for value-based care. Strategic alliances and acquisitions are key
to strengthening our portfolio and executing on our strategic
priorities and we need to successfully implement the right com-
pany operating model that supports our strategy.
Risk approach
Our approach to managing these risks is to embed fact-based
risk information as a natural part of executive decision- making,
balancing risk versus reward. Read more about Elekta’s strategy
on
page 12.
External risks
External risks arise from events outside the company and are
beyond our inuence or control.
Risk factors
A large geographical presence with multiple manufacturing
sites and a large installed base expose us to potential political
and economic risks on a global scale and in individual countries
or regions. Pandemics cause uncertainty in order growth, lim-
ited access to hospitals, and increased risk of delayed installa-
tions because of lock down of countries. Elekta’s ability to sell is
dependent on availability of nancing for private customers
and healthcare spending funds by governments. Elekta’s ability
to commercialize its solutions is dependent on the reimburse-
ment level that hospitals and clinics can obtain. Elekta’s opera-
tion is guided by stringent demands and standards for medical
equipment by regulatory authorities and rule changes might
bring about increased costs or hinder sales of Elekta’s products.
Risk approach
The focus is to limit the consequences of these risks on our
business. Risk management strategies involve continuously
identifying and monitoring external risks and to prepare and
train the organization to reduce the impact of occurring risk
events through stress testing, and disaster/continuity/recovery
plans. Understanding and managing the pandemic has also this
year been critical, balancing the well-being and safety of
employees with the commitments to customers and their
patients. Strong focus has been on resilience activities to control
costs and prepare for returning to more normalized growth.
Financial risks
Financial risks mainly refer to Elekta’s ability to manage its
nancial debt and nancial leverage, such as nancing risks
andliquidity risks as well as market risks.
Risk factors
With a large geographical presence and many legal entities
worldwide, the company faces currency risks in the form of
-transaction and translation exposure. Further, the company
holds loans in xed and oating interest rates which could
impactthe nancial result negatively.
Risk approach
Financial risk management is conducted by Elekta’s nance
department, which identies, evaluates and hedges nancial
risks. Work is pursued in line with the policies established by the
Board for overarching risk management and for specic areas
such as currency risk, interest-rate risk, and credit risk. Read
moreabout Elekta’s nancial risk management in
Note 2
andin the internal control over nancial reporting on
page 83.
BUSINESS OVERVIEW RISK MANAGEMENT
ELEKTA ANNUAL REPORT 2021/22
38
Sustainability-related risks
embedded into our risk universe
Our ERM methodology allows for all material sustainability risks to be part of our risk
universe. As part of our strategic planning process, all management teams are asked to
ensure that material sustainability risks associated with their operations are appropriately
identied, evaluated and managed. For our material sustainability risks see the In-depth
Sustainability Report on
page 43.
Risks with major impact on group level (bottom-up)
The Elekta risk universe model is built from a bottom-up
ap proach where individual strategic, operational, and external
risks are consolidated with the help of cluster risk areas. Each
individual risk contained in Elekta’s bottom-up risk register is
mapped against a given risk cluster area and measured on its
probability and impact, risk management preparedness and
contribution to the overall impact on Elekta. Each risk identifying
source is also given a unique weight, which will determine the
level of inuence on the overall risk score.
Below is a picture showing the Elekta risk universe and the
severity of each risk cluster area. The closer to the center of the
diagram, the more severe impact the risk cluster area has on
Elekta during this strategic period.
Environ-
mental
Action
People
in Focus
Business
Ethics
Access to
Healthcare
Unfavorable alteration in
reimbursement levels
Natural disasters and
pandemic risk management
Political risks including trade
restrictions and protectionism
Limited access to radiotherapy
in low- and middle- income
countries
Less availability of nancing
(customers)
Increased market consolidation
& strengthened competition
landscape
Changes in regulatory framework
or processes
External risks
Not fullling transactional,
strategic alliances and company
reorganizational goals
Technology and innovation
failures
Strategic risks
Employees & human rights
Talent attraction, succession
planning and employee retention
Adverse human rights impact
in our supply chain, material
traceability and conict minerals
Legal & regulatory
Intellectual property rights
& trade secrets protection
Substandard agreements and
breach of contractual terms
Deviation from quality assurance
systems and regulatory processes
Supply chain & process excellence
Loss of key suppliers and
access to third-party items
Quality issues and disruption
in our supply chain processes
Business transformation
& process excellence
Pricing model & sales governance
Organization, roles
and responsibilities
Internal operations/dependencies
and suboptimal processes
Compliance & business ethics
Compliance with laws such
as allegations of corruption,
improper payments and
bid rigging
Anti-money laundering
& Tax evasion (KYC)
Export control & trade compliance
Employee fraud
Tax risk
Data protection
Elekta values, accountability
and corporate culture
IT
Cyber and security threats
and IT systems disruptions
Environment & social
Environmental compliance &
meet expectations on climate
change
Operational risks
RISK MANAGEMENT BUSINESS OVERVIEW
39
ELEKTA ANNUAL REPORT 2021/22
Elekta key risks (top-down)
As part of the ERM process, risks are evaluated with the insight of the Executive Management
and the result is a list of the most important risks areas to focus on during the current strategy period.
Risk areas Risk description Consequences Mitigation
Relevant
UN SDG
Customer satisfaction
& quality excellence
(operational risk)
Ability to timely and eciently
identify and respond to cus-
tomer needs, demonstrate the
value proposition of new prod-
ucts and services and fully com-
ply with internal quality assur-
ance systems and processes.
Customer dissatisfaction, loss of
quality advantage, generating
costs of non-quality and loss of
market share.
Continuous development of
products in close collaboration
with customers and continuous
improvements in ecient qual-
ity management processes.
Cyber & security threats
(operational risk)
Cyberattack on the Elekta inter-
nal network or on external ser-
vices providers.
Damage to the company net-
work and/or leakage of con-
dential information resulting in
business interruption, loss of
business critical data and
breach of privacy regulations.
Consistent risk analyses and
monitoring of threats. Employee
training, updated software and
internal control.
Talent attraction &
employee retention
(operational risk)
Ability to attract, recruit and
retain highly skilled employees.
Lost technological advantage,
knowledge transfer disruption
and inability to secure long-
term talent growth.
Retention and succession
planning. Leadership and people
development programs and
initiatives. Demonstrate
sustainable business practices
to increase human capital
attractiveness.
Compliance &
business ethics
(operational risk)
Allegations of corruption and
bid rigging and failure to pre-
vent improper payments by
third parties on Elekta’s behalf.
Breach of bribery, public tender
and specic industry laws. Loss
of reputation, brand value and
shareholder value in addition to
nes, blacklisting and manage-
ment distraction and prosecution.
Implementation of eective
compliance programs and train-
ing with focus on high-risk areas
and behavior consistent with
Elekta’s values.
Technology & innovation
(strategic risk)
Ability to anticipate and adapt
to customer’s needs and cus-
tomer’s ability to adopt new
technology and software.
Loss of competitiveness and
ability to reach strategic tar-
gets, leading to lower growth
and nancial performance.
Technology and innovations to
be proven through clinical and
nancial data. Proactively work
with customers to support clini-
cal evidence for new technology
adoption.
Business transformation
& process excellence
(operational risk)
Overcoming change manage-
ment challenges, new delivery
and support models.
Slow adoption of new ways of
working and deliveries. Results
in lost competitiveness and fail-
ure to meet strategic targets.
Align processes with strategy
and stakeholders. Ensure right
employee competences and
research. Working together as
one Elekta team addressing
change management.
Macro economic
developments
(external risk)
Ability to adapt and react to
pandemics, trade restrictions/
protectionism and war impact
on sales, operations, employee
well-being, cash ow and down-
turns in emerging markets.
Pandemics, trade restrictions
and war causing limited access
to hospitals and delayed start
ofinstallations. Inability to plan
long-term, leading to less agile
business, higher costs and
potentially lower nancial
performance.
Control of costs and close moni-
toring of the macroeconomic
development in all markets,
adjusting ways of working to
keep servicing customers and
maintain business sustainability.
Competition
landscape
(external risk)
Ability to anticipate and re -
spond to competition pressure
due to vendor and customer
consolidation as well as in -
creased competition from the
evolving medical imaging and
informatics industry market
Potential loss of competitive-
ness and ability to reach
strategic targets, leading
tolower growth and nancial
performance.
Continuous development of
state-of-the-art solutions and
focus on unique value proposition.
Environmental
compliance
(operational risk)
Ability to comply with minimum
environmental standards &
preparedness for investments
in climate change
Loss of business advantage,
brand value and impacting
human capital and nancial
attractiveness.
Continuous monitoring of environ-
mental legislation development,
compliance with legislation and
active participation in environ-
mental ratings organizations
BUSINESS OVERVIEW RISK MANAGEMENT
ELEKTA ANNUAL REPORT 2021/22
40
Elekta B-shares have been listed on Nasdaq Stockholm since
1994. The total number of shares outstanding on April 30,
2022 were 383,568,409, whereof treasury shares amounted to
1,485,289 B-shares. Total trading in Elekta shares on Nasdaq
Stockholm during the scal year 2021/22 (May 1, 2021 – April 30,
2022) amounted to 293.4 million shares (364.2), corresponding
to 76 percent (95) of the total number of shares. Market capital-
ization on April 30, 2022, was SEK 25,500 M (41,761), a decrease
of 39 percent.
DISTRIBUTION OF SHARES APRIL 30, 2022
Percentage of
Class of share No. of shares No. of votes Capital Votes
A-shares 14,980,769 149,807,690 3.9% 28.9%
B-shares 368,587,640 368,587,640 96.1% 71.1%
Total 383,568,409 518,395,330 100.0% 100.0%
See Note 26 for more information
on Elekta’s share capital.
Dividend and authorization to repurchase shares
As of May 2021, Elekta’s policy is to distribute at least 50 percent
of yearly net income in the form of dividends, share repurchases
or comparable measures. All decisions regarding income distri-
bution are based on Elekta’s nancial position, earnings trend,
growth potential and investment needs.
For 2021/22, the Board of Directors proposes a dividend of
SEK2.40 (2.20) per share (paid in two installments) to the
Annual General Meeting (AGM). The dividend proposal for
2021/22 amounts to approximately SEK 917 M (841), which
corresponds to 79 percent (67) of the net income for the year.
For more information on the dividend,
see page 101.
The Board intends to propose to the AGM a renewal of the
Board’s authorization to repurchase shares, not exceeding the
limit for treasury shares of ten percent of the total amount of
shares outstanding. Treasury shares may be used for Elekta’s
share-based compensation programs.
See Note 7 for more information
on Elekta’s share programs.
TEN LARGEST SHAREHOLDERS ON APRIL 30, 2022
1
Percentage of
Shareholder No. of shares Capital Votes
Fourth Swedish National Pension Fund 33,680,795 8.8% 6.5%
Laurent Leksell
2)
22,737,393 5.9% 30.4%
Nordea Funds 18,332,409 4.8% 3.5%
SEB Funds 14,814,517 3.9% 2.9%
Schroders 13,392,397 3.5% 2.6%
Didner & Gerge Funds 12,766,029 3.3% 2.5%
AMF Pension & Funds 12,193,022 3.2% 2.4%
T. Rowe Price 11,407,749 3.0% 2.2%
Lannebo Funds 11,242,787 2.9% 2.2%
Vanguard 11,009,539 2.9% 2.1%
Other 221,991,772 57.8% 42.6%
Total 383,568,409 100.0% 100.0%
1)
Source: Modular Finance.
2)
Including company holdings.
The table shows the ten largest known shareholders at the
endof the scal year. Foreign ownership was approximately
47percent (52) of capital and 35 percent (38) of votes.
79 percent of net income
to shareholders
THE TOTAL RETURN OF THE ELEKTA SHARE
Thousands, shares
0
20,000
40,000
60,000
80,000
100,000
Number of traded shares
Elekta B TSR
OMX Stockholm GI
OMX Stockholm Health Care GI
%
–30
0
30
60
90
120
150
202220212020201920182017
THE SHARE BUSINESS OVERVIEW
41
ELEKTA ANNUAL REPORT 2021/22
Elekta as an
investment
Strong underlying demand
for cancer treatment driving
radiotherapy
• Increasing global cancer burden through growing
incidence and prevalence aspeople live longer
and cancer survival rates are rising globally
• Technological innovations improve radiotherapy
treatment and more cancer types become relevant
for radiotherapy
• Large structural dierences in the availability
of cancer care around the globe
• Increasing healthcare spending putting cost
pressure on clinics, thus focusing on value-based
healthcare to the benet of cost-ecient
treatments like radiotherapy
Attractive business model
and strong nancial position
• Business model with growing recurring revenue
providing sustainable growth
• Long-term stable growth in order intake, revenue,
cash ow and cash generation. Short term more
volatile, as the high-value MR-Linac business
develops
• Strategic focus on service and software to further
improve protability long term
• Strong balance sheet with good nancial position
Elekta acts in a market segment with strong underlying
demand as a driver for sustainable growth. Strategic
decisions of technological progress and closeness to
customers have strengthened our leading positions in the
markets. Based on a strong balance sheet and business
model, we are increasing our focus on innovation to
develop new solutions and elevate the standard of cancer
care. Our aim to create further shareholder value and
strengthen our sustainability agenda isbuilt upon the
following:
“ In my view Elekta has
opportunities for attractive
earnings growth, not least
through increasing service
operations, higher MR-Linac
volumes and cost control. “
Filippa Gerstädt
Portfolio Manager, Nordea Asset Management, Sweden
...including innovations
• Build on strong product portfolio in close
collaboration with partners
• Invest in innovation to drive faster adoption,
advancing functionality, and to take precision
radiation therapy forward
Strategic focus to improve
patient access to best cancer
care...
• Build stronger relationships with customers
• Deepen our partnerships, e.g. through strategic
collaboration with Royal Philips and commercial
agreement with GE Healthcare in 2021/22
• Drive market adoption through public aairs and
optimizing local presence like e.g. new sales oces
inIndonesia and the Philippines in 2021/22
BUSINESS OVERVIEW THE SHARE
ELEKTA ANNUAL REPORT 2021/22
42
INDEPTH
SUSTAINABILITY REPORT
43
ELEKTA ANNUAL REPORT 2021/22
We are part of building a
sustainable future globally
Elekta’s vision is a world where everyone has access to the best cancer care. Working to realize
this vision while taking our social and environmental responsibility is integral for the long-term
success of our company and for building a sustainable future for society.
Our approach to sustainability is guided by Agenda 2030 and its
Global Goals for Sustainable Development. By addressing our
most material sustainability topics, we are making positive
contributions to nine of the 17 goals. Particularly, we are making
a signicant contribution to target 3.4, which is to reduce pre-
mature mortality from cancer and other non-communicable
diseases by one third until 2030. We do this through our focused
strategy to increase access to radiotherapy in underserved
markets.
There are large structural dierences in cancer care globally,
with low- and middle-income countries generally being under-
served in terms of treatment capacity. This is illustrated by the
fact that they account for 62 percent of new cancer cases each
year and for 70 percent of the deaths.
By expanding our reach in underserved low- and middle-in-
come markets, we aim to grow our business and contribute to
closing the treatment access gap and supporting global sus-
tainable development. To support this eort, and to drive
inclusion and strive towards a world where no one is left
behind in the ght against cancer, we issued our rst-
ever sustainability linked bond in December 2021. The
bond has a KPI linked to closing the access gap and was the rst
bond ever issued in Sweden with a purely social KPI.
We aim to serve as a partner to decision-makers globally in
building sustainable healthcare systems, which for us means
ensuring patients get access to the best care possible. To
achieve this, the systems need to be able to regularly adopt new
innovations that improve treatment outcomes, for example by
ensuring fair and adequate compensation structures for
healthcare providers. Other key elements include improving
education and training access for healthcare professionals and
oering innovative nancing solutions for treatment products
and services.
While access to healthcare for all is the guiding star for Elekta
in our business strategy, and a core element of our sustainability
agenda, our three other sustainability focus areas – Business
Ethics, Environmental Action and People in Focus – serve as
enablers by ensuring that we build a sustainable business that
can thrive over the long term.
Further information about Elekta’s focus areas, manage-
ment approach, progress and performance can be found
on the following pages.
Environ-
mental
Action
People
in Focus
Business
Ethics
Access to
Healthcare
INDEPTH SUSTAINABILITY REPORT INTRODUCTION
ELEKTA ANNUAL REPORT 2021/22
44
Highlights of the year
•
Issued a sustainability-linked bond
•
Launched Elekta Foundation
•
Conducted a fullscale CO
2
e emissions mapping
(according to Greenhouse Gas Protocol)
Corporate sustainability governance
Given its importance to Elekta, corporate sustainability is
integrated at every level of Elekta’s governance structure,
whichwe describe as bottom-up and top-down.
Elekta’s sustainability strategy and targets are set on group
level and cascaded throughout the organization and aligned
with strategies and targets in relevant functions and business
lines. Elekta strives to incorporate the agenda into the line orga-
nizations’ planning processes to ensure eective management
and alignment with other strategic initiatives and targets. Sus-
tainability performance may also impact individual performance
assessments and remuneration in parts of our organization.
A cross-functional steering committee comprised of selected
members of the Executive Management team streamlines the
process of implementing relevant actions and targets through-
out the organization, and measures results. The sustainability
agenda is managed by the Group Sustainability Director report-
ing to the VP Strategy & Sustainability, following an organiza-
tional change during the year where the sustainability function
was expanded and moved from Compliance to the Group
Strategy function.
The Board of Directors and its committees oversee the
sustainability agenda. Social and environmental sustainability
topics are managed by the Board’s compensation and sustain-
ability committee while business ethics and integrity-related
topics are managed by the audit committee.
Please refer to
page 64 for more information on Elekta’s
sustainability and corporate responsibility governance, as
wellas descriptions of Elekta’s stakeholder dialogues and
materiality assessment.
Guided by global standards and principles
Our ethical principles are set forth in our Code of Conduct,
which is a cornerstone in our eort to build a sustainable com-
pany. The Code of Conduct applies to everyone working for and
on behalf of Elekta, such as employees, consultants, controlled
companies, distributors, and agents. The Code of Conduct is
supplemented by specic policies where needed.
In addition, we let leading global standards and principles
guide our sustainability eorts and policies – including the UN
Global Compact and its 10 principles; the OECD Guidelines for
Multinational Enterprises and its associated due diligence guid-
ance for responsible business conduct; the UN Guiding Princi-
ples on Business and Human Rights; the Universal Declaration
of Human Rights; the ILO Declaration on Fundamental Princi-
ples and Rights at Work; and also the precautionary principle.
INTRODUCTION INDEPTH SUSTAINABILITY REPORT
45
ELEKTA ANNUAL REPORT 2021/22
Why is this important to us?
Cancer is one of the leading causes of death globally. Around 19
million people are diagnosed with cancer each year and that
number is expected to increase
1)
. In addition, there are large
structural dierences in cancer care globally. Investing in radio-
Access to healthcare, in particular radiotherapy, lies at
the heart of our business. Improving access globally,
especially in low- and middle-income countries, is an
important strategic priority for Elekta.
therapy capacity in low- and middle-income countries would
save lives and lead to substantial economic benets
2)
, and
would contribute to Goal 3 of the UN Sustainable Development
Goals: securing good health and well-being for all.
Applicable Sustain able
Development Goals
Goal 3: Ensure healthy lives and promote
well-being for all at all ages
3.4: Reduce mortality from non- communicable
diseases and promote mental health
3.C: Increase health nancing and support
health workforce in developing countries
Goal 4: Ensure inclusive and equitable quality
education and promote lifelong learning oppor-
tunities for all
4.4: Increase the number of people with relevant
skills for nancial success
Goal 17: Strengthen the means of implementa-
tion and revitalize the global partnership for
sustainable development
17.16: Enhance the global partnership for
sustainable development
17.17: Encourage eective partnerships
Elekta’s contribution
•
Providing access to high-quality
and innovative radiotherapy
solutions globally
•
Oering training and education in
radiotherapy to healthcare profes-
sionals, particularly in low- and
middle-income countries
•
Collaborating and partnering with
clinics, researchers, governments,
and the civil society to develop new
products and raise awareness
about radiotherapy
•
Established a philanthropic founda-
tion (Elekta Foundation) to further
improve access to, and quality of,
cancer care with special focus on
radiotherapy
1)
Sung et al, Global Cancer Statistics 2020: GLOBOCAN Estimates of Incidence and Mortality Worldwide for 36 Cancers in 185 Countries,
CA: A Cancer Journal for clinicians May/June 2021 https://acsjournals.onlinelibrary.wiley.com/doi/full/10.3322/caac.21660
2)
Atun et al, Expanding global access to radiotherapy, The Lancet Oncol 2015 Sep; 16(10): 1153-86 https://pubmed.ncbi.nlm.nih.gov/26419354/
Access to
Healthcare
INDEPTH SUSTAINABILITY REPORT ACCESS TO HEALTHCARE
ELEKTA ANNUAL REPORT 2021/22
46
What hinders access?
Improving access to radiotherapy in low- and middle-income
countries, often requires working more levers than just adding
equipment. The challenges can be categorized into three main
types:
•
Infrastructure: underdeveloped general healthcare and
late cancer diagnostics, low public awareness, lack of
nancing and compensation systems, and under-dimen-
sioned power systems that may not serve radiotherapy
equipment appropriately
•
Human capital: qualied radiotherapy professionals
(suchas radiation oncologists, radiation therapists, radiation
physicists) are in short supply globally, but especially in low-
and middle-income countries
•
Utilization of equipment: usability knowledge gap which
may lead to equipment downtime, unnecessarily lengthy
treatment plans and patient queues
In addition, healthcare systems are slow to adopt innovations
that improve patient outcomes. A reason for that is that both
compensation schemes and treatment guidelines are slow to
adapt to the possibilities brought on by the new technology.
How are we working with this?
Helping health systems with adopting innovation
In 2021, Elekta formed a new department, Global Policy and
Patient Access, to serve as a partner to decision makers, across
the world, in building long-term sustainable healthcare systems.
To Elekta, a system is only sustainable if it provides fair and ade-
quate compensation so that new innovations which provide
clear clinical value can emerge and be adopted.
Challenges dier between healthcare systems. Developed
markets for example may have compensation schemes that
economically disadvantage clinics that adopt new treatment
schemes, such as hypofractionation, when reimbursing per
completed fraction. In developing markets, patients might
lackaccess to treatment altogether due to a range of factors.
To tackle these varying challenges, the department develops
expertise on how healthcare systems are constructed, on how
compensation and treatment guidelines are set, and what kind
of questions researchers need to answer to help policy makers
construct policies that lead to optimal patient outcomes, in
aneconomically sustainable way.
To make sure this expertise reaches the right people, the
department works with decision and policy makers to drive
change. The aim is to ensure fair and adequate compensation
for radiotherapy treatments, so that hospitals and clinicians
working within healthcare systems can adopt new innovations
that improve both patient outcomes and access to treatments.
The department also manages partnerships with organiza-
tions such as IAEA and WHO, societies like ESTRO Cancer Foun-
dation and ASTRO, as well as global organizations like City
Cancer Challenge, UICC and Global Coalition for Radiotherapy.
Elekta engages with these organizations to raise public aware-
ness around the need for, and importance of, radiotherapy as
acritical cancer treatment and for how innovative technical
solutions can contribute to increasing access, as well as supports
them with both funds and clinical experts.
Innovation focusing on utilization and eciency
Elekta invests heavily in R&D to develop cutting edge radiotherapy
solutions and oncology information system software.
Our linac solutions enable delivery of advanced treatment
modalities such as IMRT/VMAT and SBRT that can provide out-
comes for several indications that are equal to surgery at a frac-
tion of the cost for both provider and patient. Other highly
cost-ecient and eective radiotherapy treatment modalities
include SRS, for which Elekta has a specialized oering with
Leksell Gamma Knife, and brachytherapy, which is the standard of
care for cervical cancer and therefore very relevant for low-income
markets where prevalence for that indication is higher.
A strong focus of our product development is to increase clinical
productivity through software that provides decision support, and
through user-friendly hardware. These include high-productivity
innovations with competitive pricing specically aimed at low-
and middle income markets, such as the Elekta Harmony linac. It
also includes cloud-delivered software bundles that can easily be
scaled up or down with usage. This lowers barriers to adoption for
new clinics, especially those in low- and middle income markets
where the patient load might be uncertain.
Our service portfolio minimizes unnecessary and unplanned
clinical downtime through preventive maintenance and remote
support. Value-added services such as dosimetry, physics, and
workow consultancy services increase access to the competen-
cies necessary for clinics to treat patients.
Increased access in
underserved markets
by a sustainability -
linked bond
of SEK 1.5 bn
For outcome 2021/22, see
page 15.
ACCESS TO HEALTHCARE INDEPTH SUSTAINABILITY REPORT
47
ELEKTA ANNUAL REPORT 2021/22
The Elekta Foundation
At the 2021 AGM, Elekta’s shareholders voted to establish the Elekta
Foundation.
Its mission is to initiate and support projects and programs in
partnership with governments, NGOs and healthcare providers
to improve access to cancer care in underserved regions and
communities.
The foundation focuses on three areas:
1) expand education to close knowledge gaps in radiotherapy
2) increase awareness and prevention in cervical cancer,
3) strengthen cancer care infrastructure through new toolsand models.
Establishing and supporting the foundation is an important part of
Elekta’s sustainability strategy. Since its launch in January 2022, the
Elekta Foundation and Turkish Radiation Society have co-organized
two hands-on workshops to improve radiation oncologists’ contouring
skills in cervical cancer and breast cancer, the two leading causes of
cancer deaths among African women. Also, with initial funding from
Elekta last year, Rayos Contra Cancer, a US-based non-prot group
developed several multicourse programs geared towards clinicians in
low- and middle-income countries in Africa, the Middle East, Latin
America and Southeast Asia. The programs were taught by volunteer
physicians, medical physicists, and therapists. This year, the partner-
ship moved over to the Elekta Foundation with increased funding so
that more people could enroll, with a target set at 1,700 clinicians from
123 centers. During the year, 1,827 clinicians from 280 centers were
trained.
The Elekta Foundation is also working with the Rwanda Ministry
ofHealth and NGOs such as Clinton Health Access Initiatives (CHAI)
and the Society For Health (SFH) to develop a pilot program in cervi-
cal cancer prevent and treatment. According to the World Health
Organization, cervical cancer is the fourth most frequent cancer in
women with an estimated 604,000 new cases in 2020. Of the esti-
mated 342,000 deaths from cervical cancer in 2020, about 90%
occur in low- and middle-income countries. The Foundation wants
tojoin the ght to end this life threatening disease in Africa.
Closing the knowledge gap and
building human capital locally
Trained professionals are in short supply globally, especially in
low and middle-income countries, and the need for eective
education and training is essential to enable increased patient
access.
Elekta’s education and training programs address this
challenge through three broad categories:
•
Targeted education and training to optimize adoption
ofourproducts and solutions
•
The use of learning partnerships with our customers
fortheprovision of peer-to-peer clinical education, and
•
Partnering arrangements with local universities and
organizations in low and middle-income countries.
Elekta employs a exible education and training oering to
assist the customer adoption of our products and solutions
withinstructor-led sessions conducted at customer sites,
instructor-led courses conducted at Elekta’s Global Learning
Centers, and through digital virtual sessions as part of our
Elekta Digital Learning oering. During 2021/22, over 17,000 peo-
ple undertook training using this blended approach. In addition,
our customers and employees are able to access self-study
materials including videos, eLearning, and software simulations
through our Learning Management System and over 21,000
users were registered in the system in 2021/22.
Peer-to-peer education is facilitated by our global network
oflearning partnerships and initiatives such as Elekta’s Brachy-
Academy, which enable accelerated adoption and start-up of
our solutions through consulting and clinical education. Experi-
enced learning partners share their expertise and best practice
INDEPTH SUSTAINABILITY REPORT ACCESS TO HEALTHCARE
ELEKTA ANNUAL REPORT 2021/22
48
Performance and outlook 2021/22
Goals Achievements Status New/adjusted goals
ACCESS TO HEALTHCARE
Increase the installed base by
825 linacs in underserved markets
by April 30, 2025, compared to
April30, 2020.
2021/22: 175 linacs were installed in
underserved markets in (2020/21:
163 linacs).
Goal retained.
“ Our newly established team
acts as a liaison between
industry, academia, health-
care professionals, patients
and governments to enable
a joint approach for facing
challenges in healthcare
systems in an economically
sustainable way. ”
Susanna Francke Rodau
VP Global Policy and Patient Access, Elekta
Ongoing, on track Ongoing, not on track Not achievedAchieved
by hosting clinical observations sessions, clinical courses, and
webinars. Over 6,700 clinicians were assisted through these
oerings this year. In addition to this, Elekta also arranges for
clinics in low and middle-income markets to twin with – and
learn from – clinics in developed markets.
Elekta has developed its successful partnering program
with NGOs to provide digital learning opportunities in low and
middle-income countries this year. Over 450 clinicians have
been able to benet from these free course, including con-
touring classes for African radiation oncologists to enhance
their contouring skills by Turkish Society for Radiation Oncol-
ogy and a clinical training program focused on cervical cancer
in India via the BrachyAcademy.
The creation of the Elekta Foundation has served to rein-
force our commitment to growing cancer awareness and
prevention to ensure access to cancer care for all. Please see
page 48.
Strengthening local presence
Elekta builds capacity locally by expanding its direct presence,
and by increasing the number of local technical experts (ser-
vice engineers) that help customers avoid unnecessary clini-
cal downtime, directly improving patient access. We are also
establishing new entities in low- and middle-income countries
to better serve customers. During the year, we have, for
example established local entities in the Philippines and
Indonesia.
Developing customer nancing solutions in joint eorts
By partnering with third-party nanciers, such as leasing
companies or export credit agencies, we enable nancing
solutions and other alternative payment models, that
increase the aordability of modern radiotherapy technology
for clinics.
ACCESS TO HEALTHCARE INDEPTH SUSTAINABILITY REPORT
49
ELEKTA ANNUAL REPORT 2021/22
Why is this important to us?
Climate change is an existential issue and everyone must take
action to curb global warming and ensure a sustainable future
for the planet. As a society, we need to decouple economic
growth from environmental impact. At Elekta, we are deter-
mined to do our part, and we have stepped up our ambition
As Elekta strives for a world where everyone has access to
the best cancer care, we need to ensure that we minimize
our environmental footprint while maximizing the social
value. By setting ambitious targets for reducing greenhouse
gas emissions and waste, and increasing circularity, Elekta
iscommitted to being part of the solution and decouple
growth from environmental impact.
during 2021/22. Elekta has set an ambitious roadmap for reduc-
ing emissions in line with the Paris Agreement and aligning our
operations with climate science. Elekta has submitted environ-
mental targets to the Science Based Targets Initiative for vali-
dation, following our commitment to the initiative in 2021.
Applicable Sustain able
Development Goals
Goal 9: Build resilient infrastructure, promote
inclusive and sustainable industrialization and
foster innovation
9.4: Upgrade all industries and infrastructures
for sustainability
9.5: Enhance research and upgrade industrial
technologies
Goal 12: Ensure sustainable consumption
and production patterns
12.4: Responsible management of chemicals
and waste
12.5: Substantially reduce waste generation
Goal 13: Take urgent action to combat climate
change and its impacts
13.1: Strengthen resilience and adaptive capacity
to climate related disasters
Elekta’s contribution
•
Decrease the greenhouse gas emis-
sions at Elekta and throughout our
value chain through e.g. environ-
mental eciencies within our own
operations, supplier and customer
engagement, product develop-
ment, proactive servicing to maxi-
mise system value, environmentally
ecient logistics and and the scal-
ing down of waste at our sites
•
Advancing our circular approach
and applying ISO 14000 series
design for sustainability standards
to all new product development
•
Ensuring adherence to our
environmental policies and
standards
Environ-
mental
Action
INDEPTH SUSTAINABILITY REPORT ENVIRONMENTAL ACTION
ELEKTA ANNUAL REPORT 2021/22
50
How are we working with this?
Group-wide collaboration
Elekta has established a group-wide team for driving the com-
pany’s environmental agenda, with dedicated representatives
from the company’s four business lines and selected business
functions giving the company a platform for driving change
across the value chain.
Detailed CO
2
e assessment to enable
ambitious reduction targets
During 2021/22, Elekta has completed an in-depth analysis of
ourGHG emissions prole across scopes 1–3, establishing a new
CO
2
e baseline. We have identied three main sources of emis-
sions resulting from our work to drive access to cancer care: the
use of our products, our supply chain and the production of input
materials, and the transportation of our products.
In Scope 1, Elekta has expanded its baseline with detailed infor-
mation on car eet emissions and we have continually focused
on reducing emissions from Scope 1 and 2 during the year.
Actions taken include installing more ecient heating and cool-
ing systems in the Brachy production facility in the Netherlands
and switching parts of our North American car eet to hybrid
vehicles. We foresee absolute emission reductions in Scope 1 and
2 over the coming years as part of our commitment to Science
Based Targets.
In Scope 3, Elekta has improved our emissions data by com-
pleting a full emissions according to the Greenhouse Gas (GHG)
Protocol. Categories added in the mapping include: employee
commuting, processing of products, an expanded view on use
ofsold products, and end of life treatment of sold products.
To reduce our transportation emissions, Elekta has worked
with logistics partners during 2021/22 to establish granular emis-
sions data. We have also established digital intelligence tools to
analyze activity-based logistics data which will further increase
the understanding of our environmental footprint and assist in
identifying prioritization areas for emissions reduction.
The pandemic developed our ability to leverage digital tools for
coordinating global events and activities. We continued to stress
more environmentally ecient business travel and during the
year, we also estimated emissions from employee commuting
through an employee survey across our global organization to
follow up going forward.
Increasingly driving circularity and scaling down waste
The circular economy principles aim to minimize waste and to
reuse products and materials. Developing business models based
on a more circular approach will enable the decoupling of eco-
nomic value creation from the consumption of nite resources.
Our ambition is to deliver eco-designed products where we
take the full product lifecycle footprint into consideration. The
aim is to maximize the positive social impact of our solutions in
terms of care provided, while minimizing their environmental
footprint. This is managed at the product development stage
through the setting of meaningful requirements that drive in -
herent design choices. These requirements relate to low energy
usage, materials selection, and modular design that increases
upgradability, repairability and serviceability to maximize the
product value. We also design for reuse, enabling reselling of
components at a system’s end of life.
A dedicated Global Product sustainability team was set up
during the year to analyze the environmental impact of Elekta’s
Linac Solutions and to expand the scope of Linac parts included
in the circular economy. The team focuses on engineering anal-
ysis of high CO
2
e impact materials such as tungsten and on the
quantication of reuseable parts used in modular assemblies
within our products to identify improvement opportunities and
to implement changes. Based on this work and as part of the
planned materality analysis, Elekta aims to revisit our circularity
strategy during 2022/23.
Elekta has several ongoing and planned projects for taking
back components of our products at end-of-life for refurbish-
ment. We have continued to expand this approach across our
product lines. In Linac Solutions, the refurbishment program
includes 22 Linac components (21 components in 2020/21), and
we continue to identify new components t for refurbishment.
When hardware is updated in Neuro, computers are now
returned to Elekta to be used as spare parts.
Elekta also has an ambition to reduce its packaging waste and
during the year, we have worked to improve the baseline for our
product packaging. Some initiatives underway include the rede-
sign of packaging cases for Linacs and patient support systems.
Elekta is also reusing and switching to more environmentally e-
cient materials, such as replacing soft wood with plywood,
which decreases our packaging footprint and decreases trans-
port emissions thanks to the reduced size and weight of packag-
ing materials. Other circular initiatives include return and reuse
of Gamma Knife shipping containers as well as the refurbishing
and reuse of Brachy source containers.
Elekta is dedicated to eliminating landll. Our largest manu-
facturing site in the UK achieved zero waste to landll in 2021,
and waste to landll is already zero at our other two major oce
sites in Europe (Sweden and the Netherlands). In addition, used
furniture, laptops and mobile phones from Elekta are being
repurposed in schools and charities in the UK as part of a local
circular economy and recycling community scheme.
In this report, Elekta has adopted the Global Reporting Initia-
tive’s revised waste reporting standard, increasing the quality of
our waste reporting, see
page 67.
“ We are committed to
aligning our operations
with climate science and
have submitted Elekta’s
environmental targets
to SBTi for validation. ”
Gustaf Salford
President and CEO, Elekta
ENVIRONMENTAL ACTION INDEPTH SUSTAINABILITY REPORT
51
ELEKTA ANNUAL REPORT 2021/22
Environmental compliance across
our business and in our supply chain
To ensure compliance in our own operations, all Elekta manu-
facturing sites have local environmental management systems
that are certied with ISO 14001 or equivalent. A group-wide
environmental policy is used to continuously drive environmen-
tal performance. On an operational level, environmental com-
pliance is managed by the business lines. Elekta intends to
expand its group-wide coordination of environmental compli-
ance during 2022/23.
Elekta’s environmental compliance risks are mainly found in
the supply chain and involve suppliers specializing in complex
manufacturing processes, which occassionally could have
adverse environmental impacts. Suppliers are required to oper-
ate in full compliance with applicable environmental legislation
and employ suitable management systems. Throughour
Supplier Code of Conduct, we ask suppliers to set the same level
of responsibility for their environmental impact that we have set
for ourselves. The Code is reviewed and updated regularly and
covers a wide range of sustainability activities that provide
greater transparency about the risks and opportunities faced
byboth Elekta and the supplier.
Additionally, our current suppliers are assessed and moni-
tored from an environmental risk perspective through our
Sustainable Sourcing Program, see
page 61. Elekta selects
suppliers through our Sourcing process that includes quantita-
tive and qualitative assessment criteria which are governed
byour Sourcing Board, as well as commercial contracting and
quality assurance processes. If an environmental risk with a
current supplier is identied, an action plan would be initiated
to correct any non-conformances. If the risk is still not
addressed, the supplier would be deselected as a last resort.
The Taxonomy Regulation
The purpose of the European Union’s Taxonomy Regulation is to
facilitate investors’ assessments of companies’ performance in
relation to climate and the environment, with the aim of redi-
recting capital ows to sustainable businesses. The Taxonomy
Regulation is a classication system dening sustainable perfor-
mance for a set of economic activities. Activities covered by the
taxonomy are called taxonomy-eligible activities. For these
activities, the delegated acts complementing the Taxonomy
Regulation dene performance criteria across six environmental
objectives, as well as minimum safeguards for the protection of
human rights and labor law. Activities that meet all these crite-
ria are considered taxonomy aligned.
Elekta’s taxonomy assessment and reporting
A cross-functional working group at Elekta has analyzed the
Group’s activities, based on NACE (Nomenclature of Economic
Activities) codes and in-depth know ledge of the Group, to iden-
tify activities and nancial transactions which relate to the
share of taxonomy eligible net sales, capital expenditure and
operational expenditure. Elekta’s main activity, the manufac-
turing of medical technology, is not currently taxonomy-eligible
under the rst two environmental objectives.
To develop the Group’s taxonomy reporting, Elekta is following
the developments relating to the Taxonomy Regulation, its dele-
gated acts and guidance issued. In 2022/23, initiatives will be
undertaken to analyze Elekta’s alignment to the criteria of the
taxonomy-eligible activities. In line with the reporting require-
ments, Elekta will report its taxonomy alignment in the annual
report 2022/23.
Total (MSEK)
Share of which
taxonomy
eligible, %
Share of which
taxonomy
non-eligible, %
Net sales 14,548 0% 0%
Capital expenditure 1,732 0.34% 99.66%
Operational expenditure 697 0.03% 99.97%
Net sales
Elekta’s net sales totaled SEK 14,548 million in 2021 (see Note 6).
None of the net sales is attributable to activities covered by the
delegated acts.
Capital expenditure
Elekta’s capital expenditure, as dened in the Taxonomy Regu-
lation, corresponds to SEK 1,732 million, of which 0.34 percent is
considered taxonomy-eligible. The denominator includes addi-
tions to Intangible assets, Right of use assets and Tangible
assets (see
Note 16, 17, and 18). Taxonomy-eligible capital
expenditure relates to the purchase of facility upgrades (tax-
onomy category 7.3–7.4), and long-term leasing of hybrid and
electric cars (taxonomy category 3.3).
Operational expenditure
Elekta’s operating expenditure
1)
of SEK 697 million, covers direct
capitalized costs that relate to research and development,
building renovation measures, short-term lease, maintenance
and repair and other direct expenditures relating to the day-to-
day servicing of property, plant and equipment. 0.03 percent of
this operating expenditure is considered taxonomy-eligible and
primarily includes facility maintenance upgrades (taxonomy
ca te g o r y 7. 3 –7.4).
EU Taxonomy
1)
The Taxonomy Regulation’s denition of operating expenditure does
not correspond to that of IFRS and Elekta’s nancial statements.
INDEPTH SUSTAINABILITY REPORT ENVIRONMENTAL ACTION
ELEKTA ANNUAL REPORT 2021/22
52
Performance and outlook 2021/22
Goals Achievements Status New/adjusted goals
CLIMATE AND EMISSIONS
Elekta will develop and submit new
emission reduction targets to SBTi
for approval by 2021/22.
Emission reduction targets covering
Scopes 1–3 have been submitted to
SBTi and are awaiting validation.
(In 2021/22, Elekta has further devel-
oped its climate calculations meth-
odology with an extended scope,
improved data quality and updated
emission factors. 2021/22 is Elekta’s
new baseline year.)
CO
2
e (tons) 2021/22
Direct emissions (Scope 1) 4,405
Indirect emissions (Scope 2),
market based
1)
2,859
Other indirect emissions
(Scope 3) 826,756
Total emissions, all scopes 834,020
Emission intensity
(total emissions tons CO
2
e/
MSEK net sales) 57. 3
1)
Location based indirect emissions in
2021/22: 6,206 tonnes CO
2
e.
Please refer to
page 66 for
detailed reporting.
The emission reduction targets will
be communicated once validated
by SBTi. Progress will be reported
in the Annual Report 2022/23.
MATERIALS EFFICIENCY
Establish and implement a take-
back program for selected parts
of relevant products by 2021/22,
and a refurbishment program to
use reclaimed parts and compo-
nents by 2025/26.
Ongoing, with 22 components
included in program (21 components
in 2020/21). Elekta is actively working
to expand the scope of this program
through the deployment of circular
economy requirements in two major
new product development projects,
as well as in the existing installed
base.
Increase number of components
in the take-back program.
Circularity strategy and initiatives
to be expanded in 2022/23.
WASTE
Send zero waste to landll by
2024/25.
On track. In 2021/22, Elekta achieved
zero waste to landll in the UK. In
Sweden and the Netherlands, zero
waste to landll has earlier been
achieved.
During 2021/22, Elekta has
adopted the Global Reporting Initia-
tive’s revised reporting standard,
increasing the quality of our waste
reporting, see
page 67.
Send zero waste to landll by
2024/25 from our main sites (UK,
Netherlands, Sweden, China; 3 out
of 4 completed) and improve data
quality at remaining sites.
New! Minimize waste from use of
sold products by increasing re-use
or recycling of materials; rst step
is to rene customer disposal
guidelines by 2022/23.
Ongoing, on track Ongoing, not on track Not achievedAchieved
ENVIRONMENTAL ACTION INDEPTH SUSTAINABILITY REPORT
53
ELEKTA ANNUAL REPORT 2021/22
As Elekta strives for our life-saving products to be available to as
many as possible worldwide, we must make it a top priority to
combat corruption and other unethical business behavior, which
can be detrimental to sustainable development. We implement
eective compliance and integrity programs with emphasis on
values and behavior.
Why is this important to us?
Unethical business practices, such as corrupt or anticompetitive
behavior, hinders sustainable economic and social develop-
ment. Such practices can also have a substantial negative
impact on innovation, customers and ultimately the well-being
of patients. Agenda 2030 and its SDG 16.5 sets out to substan-
tially reduce corruption and bribery by 2030. It is a prerequisite
to reach the other global goals for sustainable development.
The healthcare sector is particularly vulnerable to corruption
1)
,
including improper benets provided in good faith in close inter-
action with those in charge of government funds. Close interac-
tions with healthcare professionals calls for detailed guidelines on
business practices that need to be free from even the suggestion
of improper inuence. Most of our sales will go through a public
tender process, and it is crucial that we implement and promote
lawful and sustainable practices, which is part of SDG12.7.
Applicable Sustain able
Development Goals
Goal 12: Ensure sustainable consump-
tion and production patterns
12.7: Promote sustainable public
procurement practices
Goal 16: Promote just, peaceful
and inclusive societies
16.5: Substantially reduce
corruption and bribery
Elekta’s contribution
Enforcing a robust compliance program to detect,
prevent and mitigate unlawful and unethical
behavior in all our business activities, raising
awareness about sound business practices, and
providing compliance training both internally
andexternally.
Business
Ethics
1)
According to a report from the U4 Anti-Corruption Resource Centre, this is due to “large amounts of resources, information asymmetry,
the large number of actors, system complexity and fragmentation, and the globalised nature of the supply chain for drugs and medical devices”.
Read more at: https://www.u4.no/publications/health-sector-corruption
INDEPTH SUSTAINABILITY REPORT BUSINESS ETHICS
ELEKTA ANNUAL REPORT 2021/22
54
Performance and outlook 2021/22
Goals Achievements Status New/adjusted goals
RISK ASSESSMENTS
Complete anti-bribery and corruption
risk assessment for Region Europe.
Completed for Russia. Other eastern
European countries to be concluded
within 2022/23.
Develop a compliance-focused risk
assessment strategy by 2022/23, to
beused to prioritize activities and
allocate resources.
COMMUNICATION AND TRAINING
Complete compliance training for
allregions.
Goal revised during the year to target
allregional management teams with
responsibility to cascade down. Com-
pleted for the majority of regions. Train-
ing continuously on -going in all regions.
Continue to execute and mature a
structured business ethics training
andcommunication plan, with 100%
employee training in compliance &
business ethics, including in-depth
role-based training plan as well as
training of customer facing Elekta
business parties.
Annual all-employee Code of Con-
duct to be completed for 100%
employees according to enhanced
training model, further adapting
training to the employee´s individual
prole.
Annual employee Code of Conduct
training provided to all regions, detailed
and instructor lead training provided to
customer facing employees.
Complete Code of Conduct and
enhanced Compliance training for
allthird parties according to new
delivery model.
Goal revised, new strategy and modality
for compliance training to be imple-
mented in 2022/23.
Extend trainings
on lawful interac-
tions during public tenders
to all
employees and third parties involved
in sales working for and on Elekta’s
behalf during 2021/22.
Goal revised during the year to target
allregional management teams with
responsibility to cascade down. Com-
pleted for the majority of the regions.
Training continuously ongoing in all
regions.
DETECT AND RESPOND
Implement Third-Party Monitoring
program and complete monitoring
process for 40% of total third-party
population during an 18-month
period.
Goal achieved.
Complete monitoring activities for the
second target group of the Third-Party
monitoring program by 2022/23.
Continue to increase response rate
for participation in annual all-em-
ployee Integrity Survey with a target
of at least 50% participation.
Increased response rate (from 38%
to45%) with an absolute increase of
more than 500 employees.
The survey revealed that Elekta employ-
ees are committed to compliance gen-
erally, with a very good understanding
of importance of ethical business, and
how to behave in accordance with the
Code of Conduct and other company
policies and that standards expressed
therein align with their personal values
(>95 %). Year-over-year trends were
positive in 4 of 6 questions for which
such a comparison can be made. The
only two questions slightly tending
down, which are topics for global
improvement, regards clear under-
standing on compliance expectations
including management communication
of compliance expectations.
Continue to deploy and mature an
improved culture of business ethics
and compliance, emphasizing role of
leadership, ownership and account-
ability, measured through yearly integ-
rity surveys and re-launch in 2022/23
of Elekta Integrity Line campaign in all
oces.
Ongoing, on track Ongoing, not on track Not achievedAchieved
BUSINESS ETHICS INDEPTH SUSTAINABILITY REPORT
55
ELEKTA ANNUAL REPORT 2021/22
Elekta’s
compliance
program
1
Top-level commitment
The responsibility for implementing an eective compliance ultimately
rests with the Board of Directors. At least four times a year, the Presi-
dent and CEO reports to the Board and the EVP & General Counsel, in
the capacity of head of the company’s Compliance function, reports to
the Board’s audit committee on risks, programs, and ongoing issues and
investigations. For more information on the compliance function and its
interaction with the Board, see the Corporate Governance Report on
page 75.
Since the building of a compliance culture starts at the top, the CEO
and the senior management team are expected to lead by example, to
demonstrate through behavior and communication that all employees
are expected to act according to the highest ethical standards.
2
Risk assessments
Elekta’s biggest compliance risks are identied through systematic risk
assessments where high-risk geographies with strategic importance to
Elekta are prioritized. The aim of the assessments is to identify any gaps
our compliance program might have in a specic region and to imple-
ment mitigation measures where needed. The assessments are con-
ducted as workshops together with the relevant regional management
and external support, and include a comprehensive risk identication pro-
cess that covers the typical risk categories of country-, sector-, transac-
tion-, business opportunity- and business partner risks. They are sup-
ported with specic compliance audits conducted by the internal audit
function.
3
Compliance organization
The Board of Directors has given the EVP & General Counsel, as the head
of the Compliance function, autonomy and resources for the day-to-
day management of the compliance program that oversees the high-
risk legal and reputational areas: anti-bribery and corruption; competi-
tion and antitrust law; and trade compliance. These resources include
regional compliance ocers, and a global trade compliance ocer. The
compliance function was reorganized during the year with a greater
focus on regional remits.
Tax matters are managed by Elekta’s tax committee and Elekta’s
nance function.
2
1
3
4
5
6
7
8
9
Top-level
commitment
Interactions
with
healthcare
profes-
sion als
Detect
and
respond
Monitoring
and continuous
improvement
Third-party
risk manage-
ment program
Risk
assessments
Communi-
cation
and training
Practical
and
accessible
policies
Compliance
organiz -
ation
4
Practical and accessible policies
Our Code of Conduct and the Group-wide anti-corruption policy are
thecornerstone documents for building and maintaining a compliance
culture.
The Code of Conduct is available in twelve languages and is further
supported by several policies from the Board of Directors and the Presi-
dent and CEO. The global policy framework was reviewed and updated
during 2020/21. In 2021/22, the focus has been on further updating the
Code of Conduct, updating the policies as well as creating processes
that align with the updated policies. These cover the following areas:
•
Anti-corruption & dealing with business partners
•
Conicts of interest
•
Fair competition
•
Condential information & trade secrets
•
Insider trading
•
Trade compliance
•
People & Human rights
•
Procurement
•
Data privacy
•
Risk management
•
Tax strategy
•
Anti-money laundering & anti-tax evasion
•
IT security
•
Travel & expenses
The anti-corruption policy provides guidance to employees and business
partners, primarily in various interactions with healthcare providers and
professionals. Where needed due to a higher identied risk, the policy is
supplemented by stricter local guidelines.
Several ways-of-working documents supplement each area with
more detailed guidance.
INDEPTH SUSTAINABILITY REPORT BUSINESS ETHICS
ELEKTA ANNUAL REPORT 2021/22
56
5
Communication and training
Compliance and integrity training is essential in ensuring that our Code
of Conduct and other policies are used and adhered to, and we strive to
provide continuous training for both employees and business partners.
The training is designed to be engaging and uses real-life scenarios and
ethical dilemmas with a focus on the psychology of decision-making.
To provide easily available hands-on guidance on the main corporate
policies, training videos on dierent topics are regularly published inter-
nally. The material is also included in the mandatory Code of Conduct
training.
New employees are introduced to the Code of Conduct during their
orientation program. The Code of Conduct is supplemented with spe-
cic compliance training tailored to the risk prole and needs of the
employee’s role.
6
Third-party risk management
program
Third-party representative risk is managed by strict requirements on
completion of an automated risk-based due diligence on all third-party
intermediaries, as well as inclusion of compliance-with-laws language
in all representative agreements which sets forth clear expectations on
business conduct and provides audit rights.
The third-party risk management program covers commercial inter-
mediaries and other non-sales intermediaries that work with govern-
ment ocials, such as registration agents and customs brokers. The
program was revamped during the year to include systematic monitor-
ing of the high risk third parties. This provides reasonable assurance that
our third parties follow the applicable laws and business ethics stan-
dards set out in our Code of Conduct, when acting on Elekta’s behalf.
7
Interactions with healthcare
professionals
Elekta has clear guidelines in our anti-corruption policy on interactions
with healthcare professionals that, in addition to areas such as travel,
gifts and entertainment, covers risk areas such as research funding,
scholarships and other collaborations. In higher risk markets, the guide-
lines are supplemented with more detailed local policies.
The guidelines are aligned with codes that have been developed with
peers in industry associations such as COCIR and AdvaMed. Coopera-
tion and alignment are vital for the creation of a framework for ethical
business conduct between the medical device industry and healthcare
professionals.
8
Detect and respond
Elekta aims to create a culture where everyone feels free and safe to
raise compliance-related issues. When such issues are promptly
addressed, it reduces the risk of escalation to violations against the law
or our Code of Conduct. To facilitate anonymous reporting for all stake-
holders, internal and external, if such violations were to occur, or were
suspected to occur, we have an established global whistleblower pro-
cess and a reporting tool, the Elekta Integrity Line, which is available
inall applicable languages.
All reported cases are checked internally by the head of the Compli-
ance function, the EVP & General Counsel, and regularly reported to the
Board of Directors. Each case is followed up to the extent feasible, and
appropriate remediation measures are taken.
In 2021/22, 17 cases were reported, either through the Integrity Line,
aspecial e-mail address directly to Compliance, or through other
channels. Most cases relate to people and leadership issues.
9
Monitoring and continuous
improvement
The eectiveness of the compliance program is ensured through contin-
uous monitoring and audits that make sure our policies and procedures
are adhered to.
Internal adherence is ensured through, inter alia, the inclusion of rele-
vant compliance-specic questions in the Internal Controls Framework
and audits performed by the Internal Audit Function. Findings are used
to improve both local and global programs. The third-party monitoring
program referred to in step 6 above, measures adherence by our third
parties, and can trigger performing audits where necessary.
How are we working with this?
We are building a culture of ethical business conduct by estab-
lishing expectations for individual behavior across the organiza-
tion and by embedding compliance into our processes. The work
is guided by our nine-point compliance program, focusing on
our high-risk legal areas: anti-bribery and corruption, competi-
tion law, and trade compliance. The program is based on best
practices dened by leading enforcement agencies that have
been tailored to suit Elekta’s needs, risks and challenges. It con-
sists of nine activities designed to strengthen business ethics
and prevent corruption and improper payments. The manage-
ment approach of trade compliance and fair competition are
also described below.
How do we know the program
is working?
Elekta measures the Compliance program eectiveness
through risk assessments with the aim to identify and remedy
any gaps we may have in our program due to for example spe-
cic country risks or local challenges. The risk assessment serves
as a good indicator of local knowledge about policies and pro-
cedures and whether local management genuinely engages in
promoting compliance and integrity.
Elekta includes root cause assessments as part of our case
management process for reported incidents. The aim is to
detect and prevent future similar misconduct and to test
whether the existing controls were adequately designed to miti-
gate the risk. Additionally, we are including compliance controls
in our Internal Controls Framework.
Elekta’s annual internal employee survey tracks employees’
perception of our performance on compliance and integrity.
Survey questions include whether Elekta’s senior management
genuinely promotes a culture of compliance and integrity, and
whether employees believe concrete actions would be taken
should they report a violation of the Elekta Code of Conduct.
Results are presented on
page 55.
Elekta’s programs are continuously benchmarked with our
peer companies, and we participate in external surveys to mea-
sure our performance against best practice.
BUSINESS ETHICS INDEPTH SUSTAINABILITY REPORT
57
ELEKTA ANNUAL REPORT 2021/22
People are at the core of Elekta’s business. From the patients
receiving treatment with our solutions, to our more than
4,700 employees across the globe and the people that we,
in dierent ways, engage with in our supply chain.
Why is this important to us?
We are dependent on the creativity and competence of both
our own employees and the people employed in our supply
chain to keep bringing innovations that benet cancer patients
to the market.
Ensuring that we can attract and develop qualied employ-
ees is a prerequisite for keeping our position as innovator of
Applicable Sustain able
Development Goals and targets
Goal 5: Achieve gender equality and empower
all women and girls
5.5: Ensure full participation in leadership and
decision-making
5.C: Adopt and strengthen policies and enforce-
able legislation for gender equality
Goal 8: Promote sustained, inclusive and sus-
tainable economic growth, full and productive
employment and decent work for all
8.5: Full employment and decent work with
equal pay
8.7: End modern slavery, tracking, and child
labor
8.8: Protect labor rights and promote safe
working environments
Elekta’s contribution
Safeguarding human rights and labor
rights for everyone working at Elekta
and in our supply chain globally. Ensur-
ing that we oer an inclusive and safe
workplace.
People
in Focus
cancer treatments. We oer a range of opportunities for
employees and aim to create an inclusive and diverse culture
where everyone can grow professionally as well as personally.
In addition, we set high standards on our supply chain to
ensure human and labor rights are safeguarded.
INDEPTH SUSTAINABILITY REPORT PEOPLE IN FOCUS
ELEKTA ANNUAL REPORT 2021/22
58
How are we working with this?
Our approach as employer
Elekta’s approach as employer is summarized in our People &
Human Rights Policy. It is based on international standards for
human and labor rights and aims to facilitate a culture that
promotes diversity, inclusion, and equal opportunity as well as
high health and safety standards. The Human Resources func-
tion is responsible for maintaining the policy, training our
employees and investigating any reported violations. Managers
are responsible for implementing the policy in their line organi-
zations and for making sure that all employees and contract
workers are familiar with it and follows its guidelines.
Elekta’s global People Agenda aims to leverage the full poten-
tial of our employees in executing on our company strategy.
Theagenda is updated on an annual basis in line with Elekta’s
annual strategic focus areas, and is based on the following cor-
nerstones:
•
Driving capability development to ensure delivery of ACCESS
2025, with systematic talent management ensuring a future
talent pool and a culture of development
•
Strengthening our culture to secure a sustainable delivery
ofour strategy
•
Continuing to improve the Diversity, Equity, Inclusion and
Belonging agenda
•
Proactively driving organizational eectiveness and e-
ciency
•
Continually enhancing the support delivered by HR
throughour HR Excellence program
Performance evaluation and employee engagement
Employee performance is reviewed throughout the year with
aformal annual review against company targets and values
(aswell as Leadership Cornerstones for managers), and against
individual annual development plans. The plans, which man-
ager and employee co-develop, and the reviews are tools
foremployees to become accountable for their owncareer
development.
Comprehensive employee engagement surveys are con-
ducted yearly and complemented throughout the year with
shorter pulse surveys across the organization. They enable
Elekta to track a range of indices, including engagement, team
eciency and leadership, and to improve as an employer. The
last comprehensive survey was conducted in March 2022. See
page 62 for comments on results.
Tailored training and development programs
Continuous competence development is essential to keep up
with a rapidly evolving business environment and is at the top
ofElekta’s strategic agenda. Personal development plans are
based on the best practice model 10:20:70, which means 10 per-
cent formal training; 20 percent developmental relationships
such as peer coaching, support from a line manager, a mentor,
or similar; and 70 percent applying the acquired skills in the daily
work or in a stretch project.
Developing leaders is an important priority for Elekta. We
have various global leadership development programs, aimed
at managers at dierent levels in the organization, as well as
diverse development oerings for all employees. We constantly
review both the content and delivery methods of our oerings
to ensure employee development aligns with our strategy or as
a response to the changing demands of employees and leaders
alike, such as in relation to well-being, or diversity, equity or
inclusion.
In addition to the global programs, dierent local oerings,
both within geographies and functions, are oered.
A diverse and inclusive workplace
Everyone at Elekta should have equal opportunity, no matter
ofgender, age, sexual orientation, ethnicity, nationality, religion
or any other potential basis for discrimination. An inclusive and
respectful work environment is essential for maintaining a
diverse workforce, where everyone’s talents and contributions
are appreciated. Our approach is outlined in Elekta’s People &
Human Rights policy and is evaluated against targets and
reported annually.
Gender diversity is an area of special focus where we have
targets to increase the underrepresented gender, which today
isfemale, in both senior leadership and in business-critical posi-
tions to 30 percent by 2022/23. To achieve this, we ensure that
there is female representation in recruiting processes, that we
evaluate candidates for new roles fairly, that we identify new
hires with high potential for managerial roles and that the gen-
der distribution in our leadership programs is balanced. We also
assess and review gender pay gaps for comparable roles within
the company. These are conducted locally and are based on
local regulations and legal requirements.
Elekta promotes a geographically and culturally diverse work-
force. One example of our work is the Diversity, Equity, Inclusion
and Belonging Committee with a Women’s Initiative and Next
“ I’m proud that we have
continued to strengthen
our culture during the pan-
demic. When each and
every one takes full respon-
sibility, we create a force
that will strengthen our
position as an employ er,
and secure our long-term
competitiveness as
a business. ”
Karin Svenske Nyberg
EVP Human Resources, Elekta
PEOPLE IN FOCUS INDEPTH SUSTAINABILITY REPORT
59
ELEKTA ANNUAL REPORT 2021/22
Generation anity group in the region Americas. The groups
work to make Elekta an increasingly inclusive and rewarding
place to work, for example by supporting women and early
career employees in the workplace. Another example is the
recently started Diversity, Inclusion and Belonging group in the
UK, that works with awareness training, for example about
unconscious bias.
Health, well-being and safety of employees
Elekta is committed to ensuring a safe work environment
throughout our operations, preventing workplace accidents,
injuries, and illness. The health, well-being, and safety of all our
employees and customers is paramount, and we will continue to
develop this agenda in relation to both physical and psychologi-
cal aspects. Discrimination, harassment or bullying in the work-
place jeopardizes the health and well-being of our employees
and contractor partners and conicts with the company’s suc-
cess and are not tolerated in any form. There have been nine
incidents of discrimination in the year, of which all have been
investigated and resolved without any further actions. No inci-
dents are still on-going. Reported incidents of discrimination are
primarily reviewed by the local HR function as well as by an inde-
pendent party.
Our manufacturing sites operate local occupational health
and safety (OHS) management systems which have been
designed in line with national legal requirements. All proce-
dures cover both our own employees and subcontractors
working on behalf of Elekta. Local OHS committees or onsite
working groups identify hazards, assess risks, and investigate
workplace incidents. They meet quarterly and are comprised
ofrepresentatives from local management teams, health- and
safety- specialists, and employee representatives.
Risk assessments are in place for all activities that are carried
out by Elekta’s workers and contractors. Specially trained health-
and safety-managers also carry out walk-around audits and
inspections to identify hazards and investigate reported inci-
dents. External advisors are consulted in these activities. When
hazards are identied or incidents occur, the internal processes
are reviewed and risk assessments updated.
Employees and contractors are required to report work-related
hazards and hazardous situations to their managers or directly
to the health- and safety-manager. Specic instructions and
routines have been established for workers engaged in o-site
installations, for example with installations or service at hospi-
tals. These employees are always required to evaluate their work-
ing conditions and may discontinue their work until any identi-
ed health and safety issues have been resolved.
OHS risks directly linked to our business include radiation and
o-site installations. Safety measures related to radiation
include purpose-built shelters for testing, personal dosimetry for
workers exposed to radiation and regular occupational health
physical exams.
Training in health and safety is provided to workers according to
the specic needs of their role and responsibilities. As stipulated in
both our Code of Conduct and in our People & Human Rights Pol-
icy, roles that require specic safety instructions and protection
receive all necessary training and are equipped with personal pro-
tective equipment (PPE) and tools before starting work.
Health- and safety-training covers general work practices as
well as specic work-related hazards including the use pf chemi-
cals and radiation. Health- and safety-information is communi-
cated through the line organization and in many sites through
work-safety ‘Tool Box Talk’ meetings where workers are invited to
participate. Employees are also consulted in the development,
implementation and evaluation of the safety management
systems.
The promotion of worker health, including mental health, is of
the highest importance to Elekta. We partner with non-occupa-
tional healthcare providers as part of the compensation and
benets system in many sites. Other sites oer medical exams
annually. Elekta encourages employee well-being and health
through webinars and the sponsoring of company sports
associations, team well-being events and health awareness
campaigns.
Safeguarding human and labor rights
Elekta has a global supplier base and most of our suppliers of
direct materials do not operate in countries with known human
rights issues. Such exposure is located further upstream in our
supply chain, where there may be a risk that workers work exces-
sive overtime, lack freedom of association, experience forced
labor or are not paid living wages.
Our commitment to human rights and labor rights is set out
inour Code of Conduct, which prohibits any form of forced,
compulsory or child labor and proclaims the right to fair wages
including time to rest, overtime compensation and holidays.
TheCode of Conduct is complemented by a Supplier Code of
Conduct, which puts more detailed human and labor rights
“ Becoming a more diverse
and inclusive company is a
smart business decision as
it drives performance and
customer loyalty. We have
started a Women’s Initia-
tive in our region to create
a space for women to
grow, to connect, and to
further a sense of belong-
ing within Elekta. ”
Emily Jenkins
VP Marketing, Elekta
INDEPTH SUSTAINABILITY REPORT PEOPLE IN FOCUS
ELEKTA ANNUAL REPORT 2021/22
60
requirements on Elekta suppliers. It also covers sourcing of
conict minerals, business ethics, and environmental protection
and requires all suppliers to cascade the same requirements on
their suppliers.
Some of our products contain, to a small extent, minerals
such as cobalt and tungsten, which are often mined in high-risk
or conict-aected areas and where there might be modern
slavery-like working conditions connected to their extraction.
Weare members of the Responsible Minerals Initiative and are
working with them to trace the source of minerals in our prod-
ucts, ensuring the minerals have been extracted under decent
working conditions. For results, see
page 63.
Supplier engagement for sustainability
We select suppliers through our Sourcing process that includes
quantitative and qualitative assessment criteria that are gov-
erned by our Sourcing Board, commercial contracting and qual-
ity assurance processes. A key part of our sustainability ambi-
tion is our Sustainable Sourcing Program, which is a due dili-
gence and continuous improvement program aimed at building
a win-win relationship with our suppliers to manage risk and
drive value creation, while identifying opportunities for improve-
ments in our supply chain. The program covers a range of sus-
tainability requirements, and aims to identify and mitigate any
non-conformances with Elekta’s Supplier Code of Conduct.
During the year, we have revised the program to address devia-
tions identied in 2020/21 regarding its execution and started its
implementation. Elekta’s revised Sustainable Sourcing Program
is managed by the Sustainable Sourcing Forum which is chaired
by Business Line Linac Solutions Sustainability Lead and includes
procurement directors and representation from Compliance.
Elekta’s Compliance function is responsible for the Supplier
Code of Conduct while Elekta’s Procurement Function is respon-
sible for ensuring supply chain implementation and compliance
to the Code.
During the year, Elekta conducted supplier assessments
including supplier audits and business reviews in which suppliers
shared their ESG programs. Eleven supplier audits included
specic ESG assessments. The audits identied no signicant
non-conformances. Some suppliers were instructed to review
their employee working hours policy. In 2021/22, four suppliers
were categorized as high-risk suppliers. Elekta commissioned
GEOGRAPHIC LOCATION OF
SUPPLIERS, BY SPEND; 2021/22
Europe, 69%
Americas, 15%
APAC, 16%
Europe, 69%
Americas, 15%
APAC, 16%
independent third-party on-site audits of all these suppliers.
Findings included risks relating to working hours and overtime.
Elekta has reported its ndings to all the suppliers and requested
corrective action. No supplier commercial contracts have
needed to be terminated, and we continue to engage with the
suppliers to build collaboration across the supply chain.
We aim to build collaborative partnerships with suppliers that
foster a mutual understanding of each organization’s sustain-
ability programs, commitments and targets. In March 2022,
Elekta hosted a global supplier engagement day in Sweden, UK,
the Netherlands, and China. More than 100 supplier representa-
tives attended physical and virtual events focusing on the impor-
tance of sustainable sourcing and the building of resilient supply
chains for the future.
“ Supplier collaboration is key
to Elekta and we welcomed
more than 100 suppliers
during our global Supplier
Day in March 2022 for dis-
cussions on future strategic
collaborations, specically
on sustainability and
resilience programs. ”
Steve Wort
SVP and Head of Supply Chain, Linac Solutions, Elekta
Striving for the highest quality and product safety
Quality and safety in all products and oerings are top priorities
for Elekta. The goal is to meet the highest possible safety stan-
dards for all products, for customers and patients, as well as for
the company’s own installation and service employees. Elekta’s
products are developed, manufactured, marketed, sold, and
serviced in accordance with quality-controlled processes. As a
medical device manufacturer, Elekta must comply with strict
and comprehensive international legal requirements and prod-
uct safety standards. The function Product Quality & Service is
specialized to improve and monitor product quality.
Elekta is certied with ISO 13485 (quality management sys-
tems, design and manufacture of medical devices). Require-
ments in national regulations are implemented as applicable in
the procedures concerned, such as the requirement of reporting
of incidents and recalls. Quality management systems are
reviewed by both internal and third-party auditors and certied
by external regulatory bodies and authorities that conduct
regular inspections.
PEOPLE IN FOCUS INDEPTH SUSTAINABILITY REPORT
61
ELEKTA ANNUAL REPORT 2021/22
Performance and outlook 2021/22
Goals Achievements Status New/adjusted goals
EMPLOYEE ENGAGEMENT
Increase eNPS (employer net pro-
moter score) to 26 by 2023/24.
eNPS at 28 in 2021/22. Increased level of ambition:
eNPS at 34 in 2024/25.
Reduce voluntary attrition rate
to 7% by 2023/24.
Voluntary attrition rate at 8.2% in
2021/22. Elekta has seen a slight
increase in attrition this year, which
follows global trends in this area.
Goal retained.
Improve overall employee experi-
ence based on results from individ-
ual employee and team discussions,
comprehensive or pulse surveys and
other dialogue forums.
In 2021/22, the annual employee
survey saw an increase of all indices.
Elekta continues to develop pulse
survey oerings to ensure timely
employee feedback is obtained and
acted upon. All employees received
performance and career develop-
ment reviews during the year.
Goal retained.
DIVERSITY AND INCLUSION
Increase the female/underrepre-
sented gender representations in
critical business positions to 30%
by2022/23.
26% in 2021/22, increased during the
year.
Elekta continues to focus on initia-
tives to develop gender diversity for
example through leadership develop-
ment.
Goal retained.
Implement, assess and review
gender pay gap reviews in our
larger sites globally in a meaning-
ful way.
Location Gender Pay Gap
United States 16 %
The Netherlands 12 %
United Kingdom 6 %
Sweden 0 %
China 0 %
Gender pay gap is measured at
Elekta’s larger sites. For reporting
principles, see
page 68.
We continue to focus on this
important area. Elekta will always
strive to achieve 100%, meaning
0% pay gap.
Continue to promote a geographi-
cally and culturally diverse work-
force.
We continue to develop the use of
employee resource groups across
Elekta.
Revise diversity ambition and
develop our goals during 2022/23.
Ongoing, on track Ongoing, not on track Not achievedAchieved
INDEPTH SUSTAINABILITY REPORT PEOPLE IN FOCUS
ELEKTA ANNUAL REPORT 2021/22
62
Goals Achievements Status New/adjusted goals
OCCUPATIONAL HEALTH AND SAFETY
Zero vision of ‘lost time’ workplace
accidents by 2022/23.
In 2021/22, Elekta recorded a total of
four incidents of lost-time cases (15
cases in 2020/21). During 2021/22,
Elekta’s UK site has initiated report-
ing of all “near misses” which expe-
dites corrective actions to avoid
future accidents.
Implement a health surveillance pro-
gram during 2022/23 for manufac-
turing sites in the UK and China.
Expand and align accident reporting
at manufacturing sites in the UK and
China by 2022/23.
Develop a global work environment
policy (incl. psychological work
environment).
Continued work to ensure a safe
psychological work environment
has been conducted during
2021/22 in local units that will serve
as input into the global policy
framework.
Expand the People & Human Rights
Policy to include psychological work
environment by 2022/23.
SUPPLIER ASSESSMENTS INCL. HUMAN RIGHTS
New goals will be set upon the
completion of the review of the
Sustainable Sourcing Program
which was initiated in 2020/21.
During the year, Elekta has estab-
lished a new Sustainable Sourcing
Program. See
page 61.
Goals and targets within the new
Sustainable Sourcing Program are
in formulation and will be aligned
with new and upcoming interna-
tional standards.
Training on sustainability risk
awareness in the supply chain to
beoered to relevant employee
groups.
In 2021/22, selected procurement
employees (appr 12 employees) have
attended ESG awareness sessions
including human rights (more than
20 hours per individual). The sessions
will be followed up with further train-
ing in 2022/23.
Oer sustainability risk awareness
training with focus on upcoming
legislation relating to the supply
chain to relevant employee
groups.
Revision of previous target:
100% of Elekta suppliers of prod-
ucts with 3TGs (tin, tantalum,
tungsten)/ cobalt to require their
smelters validated by 2021/22.
In 2021/22, all suppliers of prod-
uctswith tungsten used smelters
validated by the Responsible
MiningInitiative. All suppliers of
cobalt have signed Elekta’s Suppliers
Code of Conduct or equivalent.
Elekta is using minor quantities
of tantalum, tin and gold.
Maintain level of conformance
and improve data quality on
supplier processes.
Performance and outlook 2021/22
Ongoing, on track Ongoing, not on track Not achievedAchieved
PEOPLE IN FOCUS INDEPTH SUSTAINABILITY REPORT
63
ELEKTA ANNUAL REPORT 2021/22
Sustainability
governance and
reporting principles
Structured sustainability governance, stakeholder dialogues and
materiality assessments ensure that we focus on our most material
topics and enable us to track our progress.
Governance structure for corporate
responsibility and sustainability
By incorporating the program for corporate responsibility into our
line operations, we ensure eective management and alignment
with other strategic initiatives and targets. The Board of Directors
governs Elekta’s sustainability program and our CEO reports to
the Board on major issues.
The Group’s compensation and sustainability committee over-
sees quarterly Elekta’s environmental and social work. Matters
pertinent to business ethics and compliance are overseen by the
audit committee. For more information,
see
page 79.
A cross-functional steering committee, comprising of selected
members of the Executive Management, regularly discusses mat-
ters pertinent to corporate responsibility and sustainability. The
committee includes functions such as nance, communications,
HR, legal, and strategy.
The work of this group streamlines the process of implementing
relevant actions and targets throughout the dierent functions
and business lines in our organization, as well as measuring
results. The corporate responsibility program is developed and
coordinated by the Group Sustainability Director reporting to the
VP Strategy and Sustainability following an organizational
change during this year, when the sustainability function was
moved from Compliance to the Group Strategy function and
expanded.
Dening material topics and reporting
content: stakeholder engagement and
materiality assessment
Our approach to sustainability is all about focusing where it mat-
ters the most. By engaging with stakeholders and continuously
developing our sustainability agenda, we have the best opportu-
nity to conduct our business sustainably and thrive in an
ever-changing environment.
In 2021/22, Elekta has re-organized its sustainability function
and transferred it to the Group Strategy team. Following this
re-organization, Elekta is planning to update its materiality
assessment during 2022/23.
Elekta continuously engages in dialogues with stakeholders
such as investors, clients and employees. Insights and conclusions
from these continuous dialogues guide our agenda and activities.
Elekta also conducts more comprehensive stakeholder dialogues
intermittently, the last one being in 2018/19. In 2019/20, Elekta car-
ried out a gap and bechmark analysis, comparing the sustainabil-
ity program and reporting with industry standards, peers and
various sustainability rating indices. The stakeholder dialogue
engaged a number of investors, all our employees as well as our
Executive Management team and their directly reporting man-
agers. Stakeholders were asked to rank various sustainability
issues and individual topics based on their importance to our busi-
ness and their impact on sustainable development. Input from
relevant networks as well as general external stakeholder priori-
ties of the medical supplies sector were also accounted for.
Results were analyzed and discussed in the steering group for
corporate sustainability. Thetopics considered material are
presented in the table on
page 65.
Forums for sustainable development
Elekta is an active member in networks and industry
associations working on sustainability and human rights
toensure that we contribute to, and are up to date with,
the global sustainability agenda. We are actively partici-
pating and collaborating in networks and organizations
such as the following:
• UN Global Compact and its Swedish network
• Responsible Minerals Initiative
• ICC Sweden’s Sustainability Committee
• COCIR (e.g. the EHS steering committee)
INDEPTH SUSTAINABILITY REPORT SUSTAINABILITY GOVERNANCE AND REPORTING PRINCIPLES
ELEKTA ANNUAL REPORT 2021/22
64
Material topics
Research and
development
Sourcing
and manu-
facturing Logistics
Marketing
and sales
After market
and service
ACCESS TO HEALTHCARE
Access to healthcare
• •
•
Innovation and R&D
•
•
•
ENVIRONMENTAL ACTION
Materials eciency
• •
•
Emissions
•
•
•
• •
Waste
•
Environmental compliance
•
•
Supplier environmental assessments
•
BUSINESS ETHICS
Anti-corruption
•
• •
Fair competition and public tenders
• •
Export control and safe trading
• • •
• •
Customer privacy
• •
•
PEOPLE IN FOCUS
Employee engagement
• • • • •
Occupational health and safety
•
•
• •
•
Diversity and inclusion
• • • • •
Supplier social assessments
•
Human rights assessment
•
Customer health and safety
•
•
See
page 69 for the GRI Content Index with page references for each material topic.
Our material topics and their boundaries
Drawing on the conclusions from the stakeholder dialogue,
legal requirements, risks and opportunities, we have identied
a set of important topics, based on the double materiality
principle. The topics cover a wide range of dierent issues
along the value chain.
The table below describes the specic boundaries – where the
impact occurs. The size of the bullet reects the scope of our
impact.
SUSTAINABILITY GOVERNANCE AND REPORTING PRINCIPLES INDEPTH SUSTAINABILITY REPORT
65
ELEKTA ANNUAL REPORT 2021/22
Environmental Action
Materials
(weight in tonnes) 2021/22 2021/22
1)
2020/21
1)
Non-renewable materials 4,141 3,180 3,049
Renewable materials 1,142 869 859
Total 5,283 4,049 3,908
1)
Excluding Brachytherapy and 2020/21 reporting format.
Non-renewable materials include metals, composites and ceram-
ics, electronics and other materials used in the manufacturing of
Elekta’s products. Renewable materials include materials used in
transport and packaging such as wood and cardboard.
The data compiled is based on material types and composition
of standard products and may exclude certain parts. It covers
Neurotherapy (Leksell Gamma Knifes), Radiotherapy (Linacs),
MR-Radiotherapy (MR-Linacs) products and Brachytherapy, that
were ordered during 2021/22. Previous years, Elekta has reported
by number of shipped units, but starting 2021/22, Elekta reports
ordered units for materials used as per the CO
2
e emissions base-
line set during the year.
The increased use of materials is a result of increased sales
during 2021/22 and also impacted by the fact that reporting is
changed to number of ordered units.
Greenhouse gas emissions
CO
2
e (tons) 2021/22
Direct emissions (Scope 1)
4,405
Indirect emissions (Scope 2), market based
1)
2,859
Other indirect emissions (Scope 3)
826,756
Purchased goods and services
290,697
Fuel and energy related
2,212
Upstream transportation
16,863
Waste generated in operations
888
Employee commuting
3,733
Business travel
9,651
Processing of sold products
96,712
Use of sold products
405,801
EoL treatment of sold products
199
Total CO
2
e emissions, scope 1–3
834,020
Elekta has set a new CO
2
e baseline in 2021/22, which is based on
number of ordered units in the period. Elekta follows the Green-
house Gas (GHG) Protocol Corporate Accounting and Reporting
Standard and reports greenhouse gas as carbon dioxide equiva-
lents (CO2e) and has selected the operational control approach
when dening its organizational boundary. Elekta does not oset
emissions and the calculations were carried out by a third-party
provider.
Scope 1 and 2
Elekta’s scope 1 emissions arise from fuel use within owned and
leased vehicles (mobile combustion) as well as gaseous fuel used
for heating in oce premises (stationary combustion).
Elekta’s scope 2 emissions arise from electricity and heating
consumption within Elekta’s oce and manufacturing premises.
Actual consumption gures of electricity and gas usage were col
-
lected for all Elekta sites with 50+ FTE (covering around 90% of the
total employee count) and the remaining energy consumption
was extrapolated from this to cover all FTEs globally.
Scope 3
• Purchased goods and services including capital goods:
Emissions from those categories are derived by applying
spend-based method where emissions are calculated by
mapping each supplier based on its sector to an environ-
mentally extended input-output analysis, EEIO (specically,
Exiobase).
• Fuel- and energy-related activities (not included in scope 1
or 2): Well-to-tank emissions have been calculated based
onthe used volumes per fuel type and the kWh for energy
per country.
• Upstream transportation: The majority of emissions data
within this category (91% of the total transport emissions)
were provided directly by Elekta’s logistic suppliers (well-to-
wheel assessment). For the remaining logistic activities, the
emissions were appropriately extrapolated based on the
available activity data.
• Waste generated in operations: The calculations were
madeby applying a spend-based method. Emissions were
calculated by mapping each supplier falling into this scope
3 category to an environmentally extended input-output
analysis, EEIO (specically, Exiobase).
• Employee commuting: Emissions were estimated based on
an employee survey considering the distance traveled as
well as the mode of commuting. The survey was conducted
in 2022 with 572 respondents. The results were then extrap-
olated to cover the whole workforce.
• Business travel: The majority of business travel emissions
calculations are based on activity data provided by Elekta’s
travel suppliers and the remaining data has been calculated
using the spend-based method.
• Use of sold products: Emissions arising from this category
were assessed by matching the energy use (per max rating,
and using an average user prole with conservative
assumptions) over the full lifetime of Elekta’s products
(Linac, MR-Linac, Brachy and Gammaknife) and software
to respective countries’ emissions factors of the countries
towhich products were sold. This category also contains
emissions from SF6 used in some of our products.
• End-of-life treatment of sold products: Emissions from this
category include an assessment of key materials and pack-
aging by weight which were matched with conservative
(highest emitting scenario) end-of-life scenario assump-
tions since not full transparency is available on how our
products or their materials are handled at the end of life
atcustomer site.
Reporting data and principles
INDEPTH SUSTAINABILITY REPORT SUSTAINABILITY GOVERNANCE AND REPORTING PRINCIPLES
ELEKTA ANNUAL REPORT 2021/22
66
Waste
Waste generated
(weight in tons)
Total,
generated
waste
Diverted from
disposal
Directed to
disposal
Hazardous 5.49 0.82 4.67
Non-hazardous 403.09 329.37 73.72
Total 408.58 330.19 78.39
Waste diverted from disposal
(weight in tons) Onsite Osite Total
Hazardous waste
Preparation for reuse 0 0 0
Recycling 0 0.82 0.82
Other recovery operations 0 0 0
Total, hazardous waste 0 0.82 0.82
Non-hazardous waste
Preparation for reuse 0 5.6 5.6
Recycling 0 323.77 323.77
Other recovery operations 0 0 0
Total, non-hazardous
waste 0 329.37 329.37
Total waste diverted from
disposal 330.19 330.19
Waste directed to disposal
(weight in tons) Onsite Osite Total
Hazardous waste
Incineration (with energy
recovery)
0
0.07 0.07
Incineration (without energy
recovery)
0
4.51 4.51
Landlling
0
0 0
Other disposal operations
0
0.09 0.09
Total, hazardous waste
0
4.67 4.67
Non-hazardous waste
Incineration (with energy
recovery) 0 26.92 26.92
Incineration (without energy
recovery) 0 0 0
Landlling 0 46.8 46.8
Other disposal operations 0 0 0
Total, non-hazardous
waste 0 73.72 73.72
Waste data includes data from Elekta’s sites in the Netherlands,
Sweden, the United Kingdom and China. Data is mainly actual
and based on information provided by the waste disposal con-
tractor at each site. In previous years, we have reported waste
data for North America. However, nearly all the oces remain
closed or attendance on a voluntary basis following the pan-
demic. In 2021/22, Elekta has not been billed for any waste
removal on the following sites: Atlanta, St Charles, Sunnyvale
andMontreal.
Environmental compliance
Elekta has not been subject to any signicant nes or non mone-
tary sanctions for non-compliance with environmental laws.
Business Ethics
During 2021/22, Elekta made a signicant upgrade to its Global
Data Privacy organization in order to meet the challenges posed
by the constantly increasing data privacy regulatory require-
ments. The organization is transitioning to a GDPR+ methodology
whereby the default approach is GDPR compliance and adjust-
ments are made to this approach based on specic country-by-
country requirements. During the FY, the organization investi-
gated several potential privacy-related issues, none of which
arose as a result of complaints. Elekta has not been subject to any
signicant nes or nonmonetary sanctions for non-compliance
with data privacy laws and no privacy related cases reported
through the Elekta Integrity line during 2021/22.
In 2021/22 there were no conrmed incidents of corruption, and
no legal actions for anti-competitive behavior, anti-trust, and/or
monopoly practices. Elekta has no on-going legal disputes.
People in Focus
Elekta’s employees
Elekta has 4,826 (4,342) employees. Occassionally, Elekta uses
contractors for specic projects. Elekta’s number of employees is
not impacted by seasonal variations. The human resources data
has been collected from Elekta’s HR system.
Total number of employees by employment contract
(permanent and temporary), by gender
2021/22
Permanent
contract
Temporary
contract Total
Women 1,378 23 1,401
Men 3,257 21 3,278
Non-categorized 146 1 147
Total 4,781 45 4,826
2020/21
Permanent
contract
Temporary
contract Total
Women 1,201 27 1,228
Men 2,942 34 2,976
Non-categorized 138 138
Total 4,281 61 4,342
SUSTAINABILITY GOVERNANCE AND REPORTING PRINCIPLES INDEPTH SUSTAINABILITY REPORT
67
ELEKTA ANNUAL REPORT 2021/22
Total number of employees by employment contract
(permanent and temporary), by region
2021/22
Permanent
contract
Temporary
contract Total
North America 1,035 1 1,036
South America 118 0 118
Europe 2,253 28 2,281
Middle East, Africa and India 306 0 306
China 741 0 741
Japan 135 12 147
Asia Pacic 193 4 197
Total number of employees 4,781 45 4,826
2020/21
Permanent
contract
Temporary
contract Total
North America 1,038 3 1,041
South America 71 0 71
Europe 1,914 44 1,958
Middle East, Africa and India 216 0 216
China 716 0 716
Japan 125 11 136
Asia Pacic 201 3 204
Total number of employees 4,281 61 4,342
Total number of employees by employment type
(full-time and part-time), by gender
2021/22
Full-time Part-time Total
Women 1,342 59 1,401
Men 3,208 70 3,278
Non-categorized 146 1 147
Total number of employees 4,696 130 4,826
2020/21
Full-time Part-time Total
Women 1,171 57 1,228
Men 2,902 74 2,976
Non-categorized 137 1 138
Total number of employees 4,210 132 4,342
Collective bargaining agreements
All employees have the right to join a trade union and to bargain
collectively in accordance with local laws and applicable conven-
tions. Everyone who works for Elekta should have the right to fair
terms and conditions according to local rules and regulations,
including contractual working time, time to rest, overtime and
holidays. Employees, whether they are covered by collective bar-
gaining agreements or not, are competitively and fairly compen-
sated for their work. At year end 2021/22, 12.6% (11) percent of
Elekta’s employees were covered by collective bargaining agree-
ments (Brazil, Germany, Austria, France, Greece, Italy, Finland,
the Netherlands).
Occupational health and safety
Workplace accidents are followed up by collecting data from
production sites involving manual manufacturing work. See
page 63.
Diversity of governance bodies and employees
2021/22 2020/21
Gender, % Men Women Men Women
Board of Directors 57. 2 42.8 62.5 37.5
Group management 85.7 14.3 86.0 14.0
All employees
2)
61.0 29.0 61.0 29.0
2)
10.0% of employees are not categorized.
2021/22
Age, % –30 years 30–50 years 50– years
No age
recorded
Board of Directors 0 14.2 85.8 0
Group management 0 50.0 50.0 0
All employees 11.0 61.6 24.4 3.0
2020/21
Age, % –30 years 30–50 years 50– years
No age
recorded
Board of Directors 0 12.5 87.5 –
Group management 0 46.6 46.6 –
All employees 11.0 61.7 24.1 3.2
Gender pay gap
Gender pay gap is calculated by dividing the average salary of
men by the average salary of women and subtracting one. The
gender pay gap reects the pay gap across the organization and
is not adjusted for dierences such as managerial levels and years
of work experience. See
page 62.
1)
All employee data is based on headcount and includes contractors.
INDEPTH SUSTAINABILITY REPORT SUSTAINABILITY GOVERNANCE AND REPORTING PRINCIPLES
ELEKTA ANNUAL REPORT 2021/22
68
GRI Standard
Disclosure
number Disclosure name
Page
reference
Omissions/
Comment
GRI 101: FOUNDATION 2016
GRI 102: GENERAL DISCLOSURES 2016
ORGANISATIONAL PROFILE
102-1 Name of the organisation. 96
102-2 Activities, brands, products and services 16–17, 18–29, 96
102-3 Location of headquarters 96
102-4 Location of operations 16–17
102-5 Ownership and legal form 41, 96
102-6 Markets served 17, 30–35, 126
102-7 Scale of the organisation 18, 67–68, 96, 104,
106, 137
102-8 Information on employees and other workers 67–68
102-9 Supply chain 18, 60–61
102-10 Signicant changes to the organisation and its supply chain 98–99
102-11 Precautionary principle or approach 45
102-12 External initiatives 45, 50
102-13 Membership of associations 47, 64
STRATEGY
102-14 Statement from President/CEO (senior decision-maker) 6–7
ETHICS AND INTEGRITY
102-16 Values, principles, standards and norms of behaviour 11–12, 44–45, 56,
59–60
GOVERNANCE
102-18 Governance structure 45, 64, 78–80
STAKEHOLDER ENGAGEMENT
102-40 List of stakeholder groups 64
102-41 Collective bargaining agreements 68
102-42 Basis for identication and selection of stakeholders 64
102-43 Approach to stakeholder engagement 64
102-44 Key topics and concerns raised 64–65
REPORTING PRACTICE
102-45 Entities included in the consolidated nancial statements 137
102-46 Process for dening the report content and the topic boundaries 64–65
102-47 List of material topics 65
102-48 Restatements of information 60
102-49 Changes in reporting 72
102-50 Reporting period 72
102-51 Date of most recent report 72
102-52 Reporting cycle 72
102-53 Contact point for questions regarding the report 72
102-54 Reporting in accordance with the GRI Standards 72
102-55 GRI content index 69–71
102-56 External assurance 72
GRI content index
GRI CONTENT INDEX INDEPTH SUSTAINABILITY REPORT
69
ELEKTA ANNUAL REPORT 2021/22
Material topics
GRI Standard
Disclosure
number Disclosure name
Page
reference
Omissions/
Comment
ACCESS TO HEALTHCARE
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 46–49, 65
INNOVATION AND R&D
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
13–14, 16, 18–29, 45,
46–47, 57, 65
Company specic
disclosure
N/A Investments in R&D 99
ANTICORRUPTION
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic, its boundary
and management approach
45, 54–57, 65, 82
GRI 205: Anti- corruption
2016
205-3 Conrmed incidents of corruption and actions taken 67
FAIR COMPETITION AND PUBLIC TENDERS
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 54–57, 65
GRI 206: Anti- competitive
Behavior 2016
206-1 Legal actions for anti-competitive behavior,
anti-trust and monopoly practices
67, 100
EXPORT CONTROL AND SAFE TRADING
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 54–57, 65
MATERIALS EFFICIENCY
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 51, 53, 57, 65
GRI 301: Materials 2016 301-1 Materials used by weight or volume 66
EMISSIONS
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 50-53, 57, 65
GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions 53, 66
305-2 Energy indirect (Scope 2) GHG emissions 53, 66
305-3 Other indirect (Scope 3) GHG emissions 53, 66
305-4 GHG emissions intensity 53
WASTE
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
48–50, 57, 65
GRI 306: Waste 2020 306-1 Waste generation and signicant waste-related impacts 50–53, 67
306-2 Management of signicant waste-related impacts 50–53, 67
306-3 Waste generated 67
306-4 Waste diverted from disposal 67
306-5 Waste directed to disposal 67
ENVIRONMENTAL COMPLIANCE
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 52, 53, 57, 60–61,
65
GRI 307: Environ mental
Compliance 2016
307-1 Non-compliance with environmental laws and regulations 67
SUPPLIER ENVIRONMENTAL ASSESSMENT
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 50–52, 57, 60–61,
63, 65
GRI 308: Supplier
Environmental
Assessment 2016
308-2 Negative environmental impacts
in the supply chain and actions taken
51–52, 61
EMPLOYEE ENGAGEMENT
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 57, 58–59, 62, 65
Company specic
disclosure
N/A Employee engagement and eNPS 62
INDEPTH SUSTAINABILITY REPORT GRI CONTENT INDEX
ELEKTA ANNUAL REPORT 2021/22
70
GRI Standard
Disclosure
number Disclosure name
Page
reference
Omissions/
Comment
OCCUPATIONAL HEALTH & SAFETY
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 57, 58, 60, 65
GRI 403: Occupational
Health and Safety 2018
403-1 Occupational health and safety management system 60
403-2 Hazard identication, risk assessment
and incident investigation
60
403-3 Occupational health services 60
403-4 Worker participation, consultation, and
communication on occupational health and safety
60
403-5 Worker training on occupational health and safety 60
403-6 Promotion of worker health 60
403-7 Prevention and mitigation of occupational health and
safety impacts directly linked by business relationships
60
Company specic
disclosure
N/A Number of recorded incidents 63
N/A Number of lost time cases 63
GRI 406: Non-
discrimination 2016
406-1 Incidents of discrimination and corrective actions taken 60
TRAINING AND EDUCATION
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 57, 58–59, 65
GRI 404: Training and
Education 2016
404-2 Programs for upgrading employee skills
and transition assistance programs
59
404-3 Percentage of employees receiving regular performance
andcareer development reviews
62
DIVERSITY AND INCLUSION
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 57, 58–59, 62, 65
GRI 405: Diversity and
Equal Opportunity 2016
405-1 Diversity of governance bodies and employees 65
405-2 Ratio of basic salary and remuneration of women to men 62, 68 Not reported by employee
category.
HUMAN RIGHTS ASSESSMENT
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 57, 58, 60–61, 62,
65
GRI 412: Human Rights
Assessment 2016
412-2 Employee training on human rights policies or procedures 63
SUPPLIER SOCIAL ASSESSMENT
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 57, 58, 60–61, 62,
65
GRI 414: Supplier Social
Assessment 2016
414-2 Negative social impacts in the supply chain
and actions taken
60–61
Company specic
disclosure
N/A Number of audits of high-risk suppliers –
results and follow-up actions/sanctions
61
CUSTOMER PRIVACY
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 55–57, 65
GRI 418: Customer Privacy
2016
418-1 Substantiated complaints concerning breaches
of customer privacy and losses of customer data
67
CUSTOMER HEALTH AND SAFETY
GRI 103: Management
Approach 2016
103-1–3 Explanation of the material topic,
its boundary and management approach
45, 57, 61, 65
GRI CONTENT INDEX INDEPTH SUSTAINABILITY REPORT
71
ELEKTA ANNUAL REPORT 2021/22
Engagement and responsibility
It is the Board of Directors who is responsible for the statutory
sustainability statement for the year 2021-05-01 – 2022-04-30 on
pages 43–72 and that it has been prepared in accordance with
the Annual Accounts Act.
The scope of the audit
Our examination has been conducted in accordance with FAR’s
auditing standard RevR 12
The auditor’s opinion regarding the
statutory sustainability statement
. This means that our examina-
tion of the corporate governance statement is dierent and sub-
stantially less in scope than an audit conducted in accordance
with International Standards on Auditing and generally accepted
auditing standards in Sweden.
We believe that the examination has provided us with sucient
basis for our opinions.
Auditor’s report on the statutory
sustainability statement
To the general meeting of the shareholders of Elekta AB (publ), corporate identity number 556170-4015
Opinion
A statutory sustainability statement has been prepared.
Stockholm, 8 July 2022
Ernst & Young AB
Signature on original auditors’ report in Swedish
1)
Rickard Andersson
Authorized Public Accountant
1)
This is a translation of the original auditors’ report in Swedish.
In the event of any dierences between the translation and the
original statement in Swedish, the Swedish version shall prevail.
Statutory Sustainability
Report
This report has been prepared in accordance with
theSwedish Annual Accounts Act. Please refer to
thetable below for page references.
Pages
Business model 14, 16–17
Environmental matters 51–53, 66–67
Social matters and employees 46–49, 58–63, 67–68
Human rights 58, 60–61, 63
Anti-corruption 54–57, 67
Sustainability risks
36–40, 50, 52, 54,
56–57, 58–61
EU taxonomy reporting 52
Auditor’s report 72
About the sustainability report
This sustainability report covers the scal year 2021/22
(May 1, 2021 – April 30, 2022). Elekta publishes a sustain-
ability report annually. Last year’s report was published
on July 9, 2021. Compared to last year’s report Elekta
has adopted the revised standard GRI 306: Waste 2020.
The report covers all Elekta’s fully-owned subsidiaries.
See
Note 19 for details about Elekta’s subsidiaries.
The report constitutes Elekta’s Communication of
Progress in line with the UN Global Compact’s guide-
lines. This report has been prepared in accordance
withthe GRI Standards: Core option.
Questions or comments? We would like to hear from
you. Please contact Hilma Nordquist, Global Sustain-
ability Director, hilma.nordquist@elekta.com
INDEPTH SUSTAINABILITY REPORT AUDITOR’S REPORT
ELEKTA ANNUAL REPORT 2021/22
72
CORPORATE
GOVERNANCE
73
ELEKTA ANNUAL REPORT 2021/22
This year, it has been 50 years since Elekta was founded. While our
expansion did not begin in earnest until the early 1980s, our focus
has remained unchanged: to make a meaningful impact on health-
care providers and their patients around the world by delivering the
best and safest clinical solutions.
Staying close to our customers and really understanding their
needs has enabled us to push the boundaries of cancer care. We have
pioneered technologies in neurosurgery with Leksell Gamma Knife,
and in radiation therapy with onboard imaging and advanced treat-
ment modalities such as IMRT and VMAT, among others. Our latest
breakthrough, the Elekta Unity MR-Linac, continues to gain ground
thanks to to its superior MR image quality, providing exquisite images
of targets and surrounding healthy tissue.
Building on our Swedish heritage, our systematic approach to
internationalization began early. We had a simultaneous strategy of
reaching out to both the largest healthcare markets and emerging
markets. Today, we are diversied with product development and
clinical research activities in all major global markets. Since we work
with advanced technology in a very complex clinical area, this foot-
print helps us gain an insight into the diering needs of cancer care
around the world.
We have come a long way in 50 years, having grown from a
smallSwedish company specializing in stereotactic radiosurgery,
toa broad global radiation therapy leader with sales in more than
120 countries, around 40 of which we have direct representation.
Elekta has grown to become essential to cancer care globally,
asthe only major company fully focused on radiotherapy and
neurosurgery.
I know that my father, Professor Lars Leksell, would have been
proud to see us carry out his legacy, and excited to see us continue
todevelop clinical solutions, software systems, and services to
ensure that our customers and their patients get access to best
treatment possible.
But we could not have done it alone. Close cooperation with
ourcustomers has been, and will continue to be, essential for our
ability to develop technology that makes a dierence for patients.
Iwould therefore like to extend my sincere gratitude to our custom-
ers, employees, and many others and thank them for their support
and contribution throughout the years.
We saw geopolitical tensions rising and the outbreak of a large
war in Europe in February 2022, when Russia invaded Ukraine. This
will exacerbate the trend of regionalization of supply chains that
arguably started with Covid. To ensure we comply with sanctions,
and to secure our supply chains, we have strengthened our focus
onrisk management and compliance.
While the situation in the world might aect the short-term sup-
ply chains, it will not aect the elevated post-covid need for cancer
care, nor the long-term growing cancer burden. In addition, the
shortage and uneven distribution of treatment capacity in the world
remains a persistent challenge. Elekta has both a responsibility and
a great opportunity to respond to these challenges and strengthen
access to cancer care. This is also our key strategic priority in the
coming years – ACCESS 2025.
This means continuing to bring imaging into the radiotherapy pro-
cess and to help clinicians manage the ever-increasing complexity –
due to growth in both treatment options and available data – by
integrating and systemizing treatment workows with more e-
cient software systems. Our knowledge of the disease continues to
develop. As we better understand the tumors’ genetics, and with
support of other pathological information sources, the personaliza-
tion of treatment will improve. Going forward, more interplay can be
expected with immunotherapy. In addition, we have launched new
solutions and programs to strengthen access, particularly in low-
income countries, which is the key priority of our social sustainability
strategy. The establishment of the Elekta Foundation in 2021 is an
important element of this strategy.
Creating value for patients and cancer care demands persever-
ance and focus. We will continue to think and plan for the long term.
This starts by securing eciency and good governance in our own
operations, while addressing our sustainability, environmental and
social responsibilities. Using our nancial resources wisely ensures
that we can provide a return to our nancial stakeholders, without
whom we would not have been able to get to where we are, and
where we need to go.
We will keep pushing the boundaries for many years to come. We
are here to continue to provide hope and help for everyone dealing
with cancer.
Laurent Leksell
Chairman of the Board
“ Elekta has grown
to become essen-
tial to cancer care
globally, as the only
major company
fully focused on
radiotherapy and
neurosurgery. ”
CORPORATE GOVERNANCE CHAIRMAN’S COMMENT
ELEKTA ANNUAL REPORT 2021/22
74
Elekta AB (publ)
1)
is a Swedish public limited liability company listed on Nasdaq Stockholm.
Elekta considers good corporate governance, including risk management and internal
control, to be an important element of successful business operations as it provides oppor-
tunities for maintaining condence among customers, patients, shareholders, authorities
and other stakeholders. Elekta’s Corporate Governance Report 2021/22 has been prepared
by Elekta AB’s Board of Directors, in accordance with the Annual Accounts Act and the
Swedish Corporate Governance Code, as a separate report from the Board of Directors’
report, and it has been reviewed by Elekta AB’s external auditor.
Elekta’s structure for corporate governance
An overview of Elekta’s corporate governance structure is set out
inthe illustration below. The dierent corporate bodies that are
included in the structure are described in more detail in this report
inthe order specied below.
Elekta has implemented and complied with the Swedish corpo-
rate governance code (the Code)
2)
with one exception during the
-scal year of 2021/22. According to point 2.4 of the Code, the
chairman of the Board of Directors is not to be the chairman of the
nomination committee. Elekta’s nomination committee resolved
toappoint the Chairman of the Board, Laurent Leksell, as chairman
of the nomination committee. This was motivated by the fact that
Laurent Leksell, in his capacity as the major shareholder, is well
suited to eectively lead the work of the nomination committee
inorder to achieve the best result for Elekta AB’s shareholders.
ELEKTA’S GOVERNANCE STRUCTURE
As per April 30, 2022
Internal control
Risk management
Shareholders
Nomination
committee
2
Elects/Appoints
Informs (e.g. directions, objectives, steering documents)/
Reports (e.g. results, compliance, deviations)
Informs/Reports direct
Informs/Reports indirect
1
External
auditor
3
Internal
audit
9
Executive Management
6
President and CEO
5
Board of Directors
4
4.1
Compensation
and sustainability
committee
4.2
Audit
committee
RA&Q
8
Compliance
7
1)
”Elekta” or the “Group” refers to the Elekta Group which includes Elekta AB (publ) and its subsidiaries, and “Elekta AB” and the “Company”
or the “Parent Company” refers to Elekta AB (publ).
2)
The Code can be found at www.corporategovernanceboard.se
Corporate Governance
Report 2021/22
CORPORATE GOVERNANCE REPORT
75
ELEKTA ANNUAL REPORT 2021/22
1
Shareholders
Shares and votes
Elekta AB’s B share is, since 1994, listed on Nasdaq Stockholm. On
April 30, 2022, the total number of registered shares in Elekta AB
was 383,568,409 divided between 14,980,769 Series A shares and
368,587,640 Series B shares. At the general meetings of sharehold-
ers, which are the forum in which shareholders may exercise inu-
ence, Series A shares entitle the holder to ten votes each, while
Series B shares carry one vote each.
Laurent Leksell has been the largest shareholder of Elekta AB in
terms of voting rights since the listing on Nasdaq Stockholm and
controlled through own and related parties as per 30 April, 2022,
holdings representing 30.4 percent of the votes.
Read more about the share, the shareholders and Elekta’s divi-
dend policy on
page 41.
General meeting of shareholders
The general meeting of shareholders is Elekta AB’s highest deci-
sion-making body at which the shareholders can exercise their right
to make decisions in certain company matters. In addition to the
annual general meeting (AGM) of shareholders, extraordinary gen-
eral meetings (EGM) of shareholders may be held at the discretion
of the Board of Directors or if requested by the external auditor or
by shareholders holding at least ten percent of the shares.
The AGM is held in Stockholm, Sweden. The date and venuefor
the meeting will be announced on Elekta’s website
www.elekta.com, not later than in connection with the third
interim report for the period May–January. Notication ofthe AGM
is published, according to the rules of the Swedish Companies Act,
not earlier than six weeks and not later than four weeks in advance
of the meeting.
Disclosures on direct or indirect shareholdings in Elekta AB repre-
senting at least one-tenth of the voting rights, and information
about authorizations by the general meeting of shareholders for
the Board of Directors to decide upon acquisition ofown shares,
areset out on
page 41.
AGM 2021
The AGM 2021 was held on August 25, 2021. As a result of the Covid-
19 pandemic, the AGM was held through advance voting. 417 share-
holders voted in advance, either personally or by proxy, correspond-
ing to approximately 70 percent of the votes in the Company. The
main resolution items of the AGM 2021 are set out in the column to
the right.
Further information regarding the AGM 2021, including the
minutes, is available at
www.elekta.com. No other general
meetings of shareholders were held during the scal year 2021/22.
AGM 2022
The AGM 2022 will be held on August 25, 2022. More information
regarding this AGM is found on
page 160.
The main resolution items of the AGM 2021:
• A dividend payment of SEK 2.20 per share to shareholders
• Discharge from liability of the members of the Board as
well as the President and CEOfor management of Elekta
AB in the 2020/21 scal year
• Adoption of fees to the Board totaling SEK 5,040,000
(4,580,000), of which SEK 1,410,000 (1,280,000) to the
Chairman of the Board and SEK 605,000 (550,000) to
eachof the other external members of the Board, as
wellasremuneration for board committee work
ofSEK135,000 (115,000) to the chairman of the compensa-
tion and sustainability committee and SEK 90,000
(80,000) toeach oftheother members of the committee,
and SEK250,000 (240,000) to the chairman of the audit
committee and SEK 160,000 (150,000) to each of the other
members ofthe committee
• Re-election of Laurent Leksell, Caroline Leksell Cooke,
Johan Malmquist, Wolfgang Reim, Jan Secher, Birgitta
Stymne Göransson and Cecilia Wikström as members
ofthe Board. Laurent Leksell was re-elected as Chairman
or the Board
• Election of Ernst & Young AB as external auditor, with
authorized public accountant Rickard Andersson as the
auditor in charge
• Approval of the Board’s remuneration report
• Adoption of the share-based long-term incentive program,
Performance Share Plan 2021, to be oered to Executive
Management and certain keyemployees
• Authority for the Board for acquisition and transfer of
own shares
• Contribution for establishing a philanthrophic foundation
0
200
400
600
20212020201920182017
Shareholders
Number of shareholders present (personally or by proxy)
Percentage of voting rights present (personally or by proxy)
30
50
70
90
Votes (%)
SHAREHOLDERS’ PRESENCE AT AGM:S
CORPORATE GOVERNANCE REPORT
ELEKTA ANNUAL REPORT 2021/22
76
2
Nomination committee
Responsibilities of the nomination committee
The main responsibility of the nomination committee is to prepare
proposals for adoption at the AGM with respect to election and
remuneration matters, as for instance election of chairman of the
general meeting, directors and external auditor as well as remuner-
ation to the directors and the external auditor.
Appointment of nomination committee
The instruction for the nomination committee, adopted by the
AGM 2020, sets out a procedure for how the nomination commit-
tee for an AGM shall be appointed. According to such procedure,
the Chairman of the Board shall contact the four largest sharehold-
ers in terms of voting rights, besides the shareholder or shareholders
the Chairman of the Board may represent. The assessment of
which shareholders that are the largest shall be based on Euroclear
Sweden’s shareholder statistics as of the last banking day in Sep-
tember. These shareholders will be given the opportunity to appoint
one person each who, together with the Chairman of the Board,
will constitute the nomination committee. The chairman of the
nomination committee will, unless the nomination committee
unanimously decides otherwise, be the member of the nomination
committee appointed by the largest shareholder in terms of voting
rights. No remuneration will be paid to the members of the nomi-
nation committee.
The composition of the nomination committee for the AGM
2022 is set out below. The assignment for the nomination com-
mittee is valid until the end of the next AGM or, where applicable,
until a new nomination committee has been appointed.
The nomination committee for the 2020 annual general
meeting of shareholders
The composition of the nomination committee for the 2020 annual
general meeting of shareholders is set out below. The assignment
for the nomination committee is valid until the end of the next
annual general meeting of shareholders, or, where applicable, until
a new nomination committee has been appointed.
The nomination committee for the AGM 2022
• Laurent Leksell (chairman) – represents his own and related
parties’ holdings and is also theChairman of the Board
• Jesper Bergström – Handelsbanken Funds
• Per Colleen – The Fourth Swedish National Pension Fund
• Filippa Gerstädt – Nordea Funds
• Javiera Ragnartz – SEB Funds
Preparation for the AGM 2022
The nomination committee held ve meetings prior to the AGM
2022. An evaluation of the Board’s work, competences, composi-
tion and independence of its members is performed annually and
initiated by the Chairman of the Board, partly to assess the pre-
ceding year, partly to identify areas for development for the
Board. During the scal year 2021/22 a digital evaluation was per-
formed with support from an external company. The conclusion is
presented to the nomination committee by the Chairman of the
Board. In addition, individual interviews have been held by the
committee with each director. The nomination committee has,
through the audit committee’s chairman, obtained the audit
committee’s recommendation as regards election of auditor.
When preparing its proposal for board composition, the nomi-
nation committee has applied the Code, section 4.1, as diversity
policy. The aim with the policy is to have a composition appropri-
ate to Elekta AB’s operations, phase of development and other
relevant circumstances. The members of the Board are collectively
to exhibit diversity and breadth of qualications, experience and
background. Gender balance on the Board is to be strived for. The
view of the nomination committee is that the current board com-
position meets the requirements of the policy. One of the focus
areas for the committee has been to increase gender balance on
the Board. The nomination committee’s proposals for the AGM
2022 are presented in the notice convening the AGM 2022. A rea-
soned statement explaining the nomination committee’s pro-
posal for the Board’s composition is posted on Elekta’s website
www.elekta.com in connection with the issuance of the
notice of the AGM 2022.
2
External auditor
3
External auditor and auditor in charge
The external auditor of Elekta AB is appointed by the AGM for a
period lasting until the end of the next AGM. The AGM 2021 elected
Ernst & Young AB (EY) as external auditor with Rickard Andersson
as auditor in charge.
Rickard Andersson was born in 1973 and is an authorized public
accountant as well as member of FAR. During the year, he was also
the elected auditor in charge of Munters, Securitas, SSAB and
Volati. He has no assignments in any other company that aects
his independence as the auditor in charge of Elekta AB.
EY has performed the audit of Elekta for the 2021/22 scal year,
inaccordance with a risk-based external audit plan, resulting in the
unqualied auditor’s report and statement, which are available on
page 148.
Services and fees
According to the audit committee’s guidelines, services in addition
to audit services, known as permissible non-audit services, that
Elekta may procure from the external auditor in order to assure that
the impartiality and independence of the external auditor is not put
at risk, may not exceed 70 percent of the cost for audit services
measured over a three-year period. The audit committee may
decide to make exceptions under certain circumstances.
CORPORATE GOVERNANCE REPORT
77
ELEKTA ANNUAL REPORT 2021/22
• Ensuring that external information and communications are
characterized by openness, and that they are accurate, reliable
and relevant
Appointment of the Board of Directors
The Board of Elekta AB is elected by the AGM for a period lasting
until the end of the next AGM.
According to the articles of association of Elekta AB, the Board
isto have between three and ten members with no more than ve
deputy members.
There are no specic rules in the articles of association concern-
ing the appointment or removal of members of the Board, nor
concerning amendment of the articles of association.
Composition and independence
of the Board of Directors
The Board comprises seven members, which are presented on
page 86. There are neither deputy board members nor
employee representatives on the Board. The General Counsel,
EVPand Chief Compliance Ocer (the General Counsel) serves
assecretary for the Board.
According to the Code, the majority of the directors appointed by
the general meeting of shareholders shall be independent of Elekta
AB and the Executive Management. In addition, at least two of the
directors, who are independent of Elekta AB and the Executive
Management, shall also be independent of major shareholders. The
composition of the Board meets the independence requirements
asve of the seven members of the board have been deemed inde-
pendent in relation to Elekta AB, the Executive Management and
major shareholders. These ve members are Johan Malmquist,
Non-audit services procured from EY during the 2021/22 scal
year adhered to the guidelines established and comprised mainly
oftax consultancy and other audit-related services.
The fees to the external auditor for the 2021/22 scal year
are reported in
Note 9.
Board of Directors
4
Responsibilities of the Board of Directors
The work of the Board of Directors is regulated by the Swedish
Companies Act, Elekta AB’s articles of association, the Code and
the working instructions for the Board. The Board is responsible for
the organization of Elekta AB and the management of its opera-
tions in the interest of the Company and all shareholders. This
includes appointing a President and CEO who is responsible for
managing the day-to-day operations in accordance with instruc-
tions from the Board. The responsibilities for the Board also
include:
• Establishing overall goals and strategy
• Dening guidelines to govern ethical conduct with the purpose
ofensuring the long-term ability to create value
• Ensuring an eective system for follow-up and control on Elekta
AB’s operations and risks that Elekta AB and its operations are
exposed to
• Ensuring a satisfactory process for monitoring compliance
withlaws and regulations and other regulatory compliance
requirements applicable for Elekta AB as well as compliance
withinternal company regulations
Board meeting
• Review of strategic initiatives
Innovation
The accelerated investments in innovation
during the year highlights the importance of
R&D for Elekta and these activities are moni-
tored closely by the Board of Directors. The R&D
pipeline focuses on personal precision, elevated
productivity and integrated informatics within
oncology care. The Board’s aim is to ensure
Elekta’s competitive edge and providing good
return on the investments through innovations
that will drive Elekta’s future growth and
improve protability.
2
2021 MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 2022 JANUARY FEBRUARY MARCH APRIL
Two board meetings
• Inaugural board meeting
• Adoption of interim report
Q1 2021/22
• Report from the audit
committee and the compen-
sation and sustainability
committee
Board meeting
• Adoption of year-end and Q4 report
2020/21
• Meeting with auditor and review of
external audit report for the full year
• Review and approval of budget for
scal year 2021/22 incl. nancial targets
• Report from the audit committee and
the compensation and sustainability
committee
• Adoption of updated prospectus
for MTN-program
Board meeting
• Adoption of annual report
2020/21 (including all
reports therein)
• Adoption of notice and
nal proposals to the AGM
THE WORK OF THE BOARD OF DIRECTORS INCLUDING SOME IMPORTANT AGENDA ITEMS IN 2021/22
Board meeting
• Presentations by an investor,
an analyst and customers on
the external view of Elekta
• Review of strategic initiatives
Examples of
the Board’s
focus areas:
New external environment
Supervision of pandemic related headwinds
remained on the Board of Directors’ agenda
throughout the year. Elekta’s Resilience and
Excellence program was accelerated as geo-
political uncertainties emerged from the war
inUkraine next to persistent pandemic chal-
lenges. The Board has focused on foreseeing
and mitigating the impact from the new
macroeconomic environment with continued
higher costs in the supply chain and rising
ination.
1
CORPORATE GOVERNANCE REPORT
ELEKTA ANNUAL REPORT 2021/22
78
Wolfgang Reim, Jan Secher, Birgitta Stymne Göransson and
CeciliaWikström.
The independence of each board member is shown on
page 86. Remuneration to the Board is set out in
Note 7
and on
page 86.
The work of the Board of Directors
The working instructions for the Board establish that the Board isto:
• Hold at least seven ordinary meetings per year
• Adopt nance and foreign exchange policies
• Adopt a code of conduct
• Approve a long-term plan and budget, including an investment
budget
• Approve investments and similar decisions where the amount of
the transaction exceeds SEK 10 million if such a transaction falls
outside the approved investment budget
• Decide on acquisition or sale of real estates or shares, or acquisi-
tion or sale of the assets of, or a major part of the assets of,
another company
• Decide on the establishment and liquidation of subsidiaries
• Adopt guidelines for remuneration of senior executives to be
approved by the AGM
• Decide on terms of employment for the President and CEO
according to guidelines for remuneration of senior executives
approved by the AGM
• Adopt the annual report, year-end report and interim reports
Within the Board, there is no special distribution of responsibilities
among the members of the Board in addition to the duties that the
Board meeting
• Adoption of interim report Q2 2021/22
• Adoption of working instructions for
board, committees and CEO
• Meeting with auditor and review of
mid-term audit report
• Report from the audit committee and
thecompensation and sustainability
committee
Board meeting
• Review of draft
budget for scal
year 2022/23
Board meeting
• Investment review
M&A and partnerships
Complementing Elekta’s own R&D pipeline through
mergers and acquisitions is permanently on the
Board of Director’s agenda. Since the competitive
landscape of the radiotherapy market shifted, build-
ing partnerships has been on top of the agenda.
During the year Elekta has entered new partnerships
with both industry peers as well as customers. The
Board has been closely involved in building these
collaborations that will broaden Elekta’s oering
while ensuring the Company’s vendor agnostic
position is kept intact.
3
2021 MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 2022 JANUARY FEBRUARY MARCH APRIL
THE WORK OF THE BOARD OF DIRECTORS INCLUDING SOME IMPORTANT AGENDA ITEMS IN 2021/22
Board meeting
• Adoption of interim
report Q3 2021/22
• Report from the audit
committee and the
compensation and sus-
tainability committee
• Review of long-term
nancial plan
Board has delegated to the compensation and sustainability
committee and to the audit committee, respectively.
During the scal year 2021/22, the Board held ten minuted
meetings. Board meetings are normally held at Elekta’s head
oce in Stockholm, or at other locations where Elekta has oces
or other facilities, but have during this scal year to some extent
been held through telephone and video conferences as a result of
the pandemic. Representatives from the Executive Management
and other senior managers regularly attend board meetings to
report on matters within their respective area of responsibility.
For ordinary board meetings, an agenda with decision supporting
material is available ahead of the meetings. The board members’
attendance at board meetings is shown on
page 86.
BOARD COMMITTEES
To improve the eciency of the board work, the Board has
appointed a compensation and sustainability committee and
anaudit committee. The committees work in accordance with
directives adopted by the Board and prepare recommendations
and proposals for the Board.
4.1 Compensation and sustainability committee
The committee and its responsibilities
The compensation and sustainability committee shall prepare
theBoard’s motions on issues relating to remuneration principles,
remuneration and other terms and conditions of employment
forthe Executive Management. In relation to sustainability,
CORPORATE GOVERNANCE REPORT
79
ELEKTA ANNUAL REPORT 2021/22
thecommittee shall, inter alia, monitor the measures to
strengthen corporate culture with respect to corporate social
responsibility in the light of Elekta’s code of conduct as well as
advise the President and CEO on proposals for targets and vision
for sustainability.
Composition
The compensation and sustainability committee consists of four
members appointed by the Board, at the rst board meeting fol-
lowing the election of the Board by the AGM, for a term of one
year. In addition to the committee members, the President and
CEO, the Executive Vice President Human Resources, the Vice
President of Compensation & Benets, the Group Sustainability
Director as well as Vice President Group Strategy & Sustainability
attend the committee’s meetings. The General Counsel serves as
secretary for the committee.
The compensation and sustainability committee
• Laurent Leksell (chairman)
• Caroline Leksell Cooke
• Wolfgang Reim
• Cecilia Wikström
Work during the year
During the scal year 2021/22, the compensation and sustainability
committee held four minuted meetings. At these meetings, the
committee has, inter alia, reviewed the remuneration of the Execu-
tive Management, prepared a proposal for a new long-term incen-
tive program for 2022/23 for Executive Management and other key
individuals as well as prepared the Board’s recommendations
regarding guidelines for remuneration of senior executives for the
next AGM. In addition, the work has included conducting a succes-
sion planning and reviewing management succession plans for
senior management levels and other Group-critical positions. The
committee has further, in line with instructions from the Board of
Directors, worked with the Elekta’s sustainability matters, with a
special focus on human rights, corporate philanthropy and environ-
ment.
The members’ attendance at committee meetings and
independence are shown on
page 86.
4.2 Audit committee
The audit committee and its responsibilities
The Board shall appoint an audit committee with the respons ibility
to monitor Elekta AB’s nancial reporting and provide recommen-
dations and proposals to ensure the reliability of the reporting. The
committee shall, with regard to the nancial reporting, monitor the
eectiveness of Elekta’s internal control, internal audit and risk
management. The committee’s responsibilities also include being
continually informed about the audit of the annual report and con-
solidated nancial statements. In addition, the committee shall
inform the Board about the result of the audit and how the audit
contributed to the reliability of the reporting as well as the role of
the committee during the audit. The audit committee also exam-
ines and monitors the impartiality and independence of the audi-
tor. Furthermore, the committee provides proposal to Elekta AB’s
nomination committee concerning the appointment of auditor for
the following mandate period.
Composition
The members of the audit committee cannot be employed by the
Company and at least one member shall have accounting or audit
competency. Elekta’s audit committee has three members who
were appointed by the Board at the rst board meeting following
the election of the Board by the AGM, for a term of one year.
In addition to the committee members, the CFO, the Head of
Group Accounting and the Chief Audit Executive also attend the
committee’s meetings as well as the external auditor, if needed.
TheDeputy General Counsel serves as secretary for the committee.
The audit committee
• Birgitta Stymne Göransson (chairman)
• Johan Malmquist
• Jan Secher
Work during the year
During the scal year 2021/22, the audit committee held six min-
uted meetings. During such meetings, the committee has reviewed
the year-end report and annual report for the scal year 2020/21
aswell as interim reports for 2021/22. Further, part of the work has
been to monitor the performance of the global internal control
framework, approve the internal audit plan as well as review and
follow up of internal audit reports. Another task, among others,
that has been dealt with is to review the external audit plan and
external audit reports. At every meeting, in-depth reviews are car-
ried out on the nancial management of selected business areas.
The members’ participation at committee meetings is shown on
page 86.
President and CEO
5
Responsibility
The President and CEO is responsible for the day-to-day manage-
ment of Elekta AB in accordance with applicable laws and regula-
tions as well as internal steering documents. These include the
working instructions for the CEO adopted by the Board and other
instructions from the Board. The President and CEO also represents
the Group in various contexts, leads the work of the Executive Man-
agement and makes decisions in consultation with the members
ofthe Executive Management.
“ Good corporate governance
includes an audit committee
that monitors both the inter-
nal and external reporting. ”
Johan Malmquist
Member, Elekta’s audit committee
CORPORATE GOVERNANCE REPORT
ELEKTA ANNUAL REPORT 2021/22
80
Appointment of the President and CEO
The Board appoints Elekta AB’s President and CEO.
Gustaf Salford is the President and CEO of Elekta AB. More infor-
mation about Gustaf Salford isprovided inthe presentation of the
current Executive Management on
page 88.
Remuneration to the President and CEO is described in
Note 7. The guidelines, proposed by the Board for approval by
the AGM 2022, for remuneration to the Executive Management
are described on
page 102 and in the Remuneration report
2021/22 on
page 92.
Executive Management
6
Appointment and responsibility
The President and CEO appoints the members of the Executive
Management. The President and CEO is responsible for and leads
the work and meetings of the Executive Management. The Execu-
tive Management supports the President and CEO in his work and
makes joint decisions following consultation with various parts of
the Group.
Composition
A presentation of Elekta’s current Executive Management is pro-
vided on
page 88. As of April 30, 2022, Elekta’s Executive Man-
agement comprised the President and CEO, the CFO, the four Solu-
tions presidents, four region EVPs as well as the heads of Product,
Global Services, HR and Legal & Compliance.
Remuneration to the Executive Management is described in
Note 7. The guidelines, proposed by the Board for approval by
the AGM 2022, for remuneration to Executive Management are
described on
page 102.
Work during the year
The Executive Management meets on a regular basis. During the
scal year, the meetings have partly been carried out through
telephone and video conferences due to the pandemic.
The most important agenda items at the meetings during the
scal year were strategic and operational matters such as product
development, acquisitions/divestments, investments, market
development, organization, long-term plans and budget, and
monthly and quarterly business and nancial reviews.
7
Compliance
Responsibility
The compliance function’s responsibilities are to review and evalu-
ate compliance issues within the organization to ensure that
management and employees of the Group are in compliance with
rules and ethical regulations relating to, inter alia, anti-bribery
and corruption, trade compliance as well as competition and
antitrust laws.
The General Counsel presents on a quarterly basis for the audit
committee the progress of the risk-based compliance program and
reports on any incidents and on-going investigations. A written
compliance report is submitted at every meeting.
The function is headed by the General Counsel.
Work during the year
The compliance function was partly reorganized during the scal
year, inter alia, to increase regional focus. Two regional compliance
heads, who report directly to the General Counsel, were appointed.
During the year, focus has remained on the third-party manage-
ment program, which involves activities such as risk assessment,
monitoring and training of business partners such as distributors
and sales agents.
Elekta’s compliance program has been further strengthened
through an update of the training and awareness program. This
includes a review of the automated Code of Conduct training
which is given to all employees as well as the in-depth individual
training adapted to specic risks deemed relevant for the employ-
ees respective role and duties.
More information about the compliance function, the compli-
ance and business ethics program as well as the activities during
the year is provided on
page 54.
8
Regulatory aairs and quality
Responsibility
The regulatory aairs and quality function’s responsibilities include
supporting management to comply with regulatory requirements
for products, quality systems and market entry. Interaction with,
and to provide transparency to, external regulatory bodies is
CORPORATE GOVERNANCE REPORT
81
ELEKTA ANNUAL REPORT 2021/22
another key responsibility. The function is furthermore responsible
for the quality system’s infrastructure and compliance, product
clearances and approvals as well as post market vigilance and recall
reporting.
The heads of the function, Senior Vice President Regulatory
Aairs & Quality and Vice President Regulatory Aairs & Quality,
both report to the General Counsel.
Work during the year
The most important tasks during the scal year have encompassed
ensuring product approval forregulatory market entry as well as to
manage inspections from dierent authorities and organizations to
ensure continued certication. In addition, the work of the function
has included completing the implementation of the Medical Device
Regulation (MDR) in Europe. The quality management system and
the main part of the product portfolio are MDR certied.
9
Internal audit
Responsibility
Internal audit is an independent function that conducts indepen-
dent and objective assurance, review, investigation and consulting
activities. The scope of the internal audit function encompasses
the examination and evaluation of the adequacy and eective-
ness of Elekta’s governance, process steering, risk management
and internal control processes, as well as the quality of perfor-
mance in carrying out assigned responsibilities to achieve the
Group’s objectives as part of the assurance activity. The work also
encompasses consulting activities and advisory support in the
same areas. The internal audit function works in accordance with
the guidelines for the internal audit function adopted by the Board.
The internal audit function is appointed by, and reports to, the
audit committee and the Board. The Chief Audit Executive, who
functionally reports to the audit committee and administratively
to the CFO, supervises the internal audit function.
Work during the year
The work of the internal audit function, based on an internal
audit plan established and approved by the audit committee,
has ncluded internal audits and investigations of subsidiaries.
Inaddition, their work included quality reviews of processes
encompassed by the global internal control program. Further-
more, statistical follow-up reporting of the internal control pro-
gram to Executive Management, the audit committee and the
Board has been carried out as well as consulting in connection
with the update of the internal control program. The internal
audit function has during the year coordinated the external
auditas well as managed the audit committee meetings.
ELEKTA´S PROCESS FOR INTERNAL CONTROL
Risk management, governance and internal control are key com-
ponents of Elekta’s strategy and management processes. Elekta’s
Board of Directors assumes the overall responsibility for establish-
ing an ecient control of risk management, governance and
internal control. The responsibility for maintaining the control
systems is delegated to the President and CEO, who is assisted
bythe Executive Management, other operational managers
andcoworkers. Functions responsible for risk management,
governance and internal control continuously report the current
status directly to the Board and/or the audit committee.
Elekta’s personnel will represent the rst level of control environ-
ment in their day-to-day work and in their management teams. To
facilitate the work, there are policies, guidelines and boundaries set
by the Executive Management on behalf of the Board. The boundar-
ies should ensure that no individual employee accepts a dispropor-
tionate portion of riskor to little risk which may result in missed
opportunities and ultimately Elekta not achieving the strategic
goals. All employees have the obligation to obtain an appropriate
level of understanding within their roles and responsibilities and
carry out their responsibilities correctly and completely. Employees
are the owners of all risks related to their business operations and are
expected to manage these by maintaining good internal control and
follow risk and control procedures. Every employee is expected to
comply with internal policies, procedures and applicable laws and
regulations.
The next stage of control environment lays within the support
functions such as nance, IT, HR, compliance, regulatory aairs and
quality as well as legal that support and monitor the rst level of
controls.
The nal stage of control environment is the internal audit func-
tion that provides independent and objective audits, assurance and
advisory support to the management on governance, preparation
of decisions, risk management and internal control.
The process for risk management and internal control applies
for the entire Group, including business lines, regions, functions,
management, coworkers, processes and technology. The Elekta
risk work is focused on identifying and managing strategic risks,
operational risks, legal and regulatory risks, external risks and
market- and nancial risks. Risk assessments are being completed
and updated continuously in order to identify risks that can
impact the achievement of strategy goals, legal compliance and
regulations and nancial reporting.
The Board also continuously manages decisions that include risk
management, for example, within the Elekta strategy and manage-
ment processes and business management. Find out more about
risk management in the Board’s report on risk management and
internal control over nancial reporting on
page 83. A description
of how other risks are being managed can be found in the risks and
risk management section on
page 36.
RISK MANAGEMENT AND INTERNAL CONTROL
OBJECTIVES
INTERNAL GOVERNANCE
AND CONTROL ENVIRONMENT
INFORMATION AND
COMMUNICATION
RISK
MONITORING
CONTROL
CORPORATE GOVERNANCE REPORT
ELEKTA ANNUAL REPORT 2021/22
82
Report on risk management
and internal control over
nancial reporting
The Board of Directors’ report on risk management and internal
control over nancial reporting has been prepared in accordance
with the Annual Accounts Act and the Swedish corporate gover-
nance code, and constitutes an integral part of the corporate
governance report. The external nancial reporting has been pre-
pared in accordance with laws and regulations and applicable
accounting standards, namely the International Financial Report-
ing Standards (IFRS), and other requirements on listed companies,
such as the Nasdaq Stockholm Rule Book for Issuers. Elekta’s work
on risk management and internal control over nancial reporting
is based on the 2013 updated internal control – integrated frame-
work (the “framework”), established by the Committee of Spon-
soring Organizations of the Treadway Commission (COSO). The
COSO framework is based on 17 fundamental principles linked to
ve components: control environment, risk assessment, control
activities, information and communication, as well as monitoring.
Objective
The Elekta Group is governed and controlled based on the distri -
bution of rights and responsibilities, including decision- making,
among dierent corporate bodies according to laws and regula-
tions as well as internal steering documents. A structure is pro-
vided through which Elekta’s objectives and the means of attain-
ing these objectives and monitoring performance are set. The
objectives reect choices made onhow the Group seeks to cre-
ate, preserve and realize value for its stakeholders. Governance
istwofold; it concerns both eectiveness and accountability.
Eectiveness is measured by performance, and accountability
includes all issues surrounding disclosure and transparency.
Objective setting is a prerequisite necessary to internal control
and a key part of the Elekta strategy and management processes.
Therefore, Elekta’s corporate governance encompasses both the
strategy and management processes, outlining the establishment
of both long-term objectives and strategies with at least a three-
year perspective and short-term objectives and plans with a one-
year perspective, and the risk management and internal control
process.
Control environment
Important elements of the control environment applicable for
Elekta’s nancial reporting are the nancial guide, including the
accounting policy, reporting instructions, authorization policy and
nance policy. In addition, there are other important elements of
the control environment for nancial reporting such as the commu-
nication policy and processes and work instructions to be found in
group-wide steering documents and in the Elekta business man-
agement system.
Risk assessment is carried out continuously throughout the
yearin order to identify risks that can aect the possibility to reach
targets set in relation to the strategy, the business, reporting and
compliance.
Risk assessment
Risk assessment includes identifying any risk that the qualitative
characteristics of useful nancial information, according to IFRS,
may not be fullled or the nancial reporting assertions may not be
supported. Risk assessment criteria include occurrence, complete-
ness, accuracy, cut-o, classication, existence, rights and obliga-
tions, and valuation for prot and loss and balance sheet items in
the nancial reporting as applicable, but also information process-
ing relating to input, processing and recording of data. A risk
assessment regarding internal control over nancial reporting is
performed once a year and covers prot and loss and balance sheet
items in the nancial reporting and related areas and processes.
The work is documented in a risk map and included in risk and
control matrices (RACMs) per area and process.
Control activities
Control activities mitigate the risks identied to achieve set objec-
tives through adherence to risk tolerance levels in terms of globally
dened minimum internal control requirements over nancial
reporting. The control activities are documented in RACMs per
area, process and risk.
Control activities are aimed at preventing errors and irregularities
from occurring and/or detecting errors and irregularities that may
have occurred. Control activities can be manual or automated,
such as authorizations and approvals, verications, reconciliations,
and business performance reviews, or a combination of two.
Control activities comprise the following areas and processes:
• Entity-level controls – over the control environment
• General IT controls – over IT system components, processes and
data for a given IT environment including logical access, program
change management, back-up and recovery
• Process controls – over processes such as order recognition, order
to cash, revenue recognition, purchase to pay, inventory, payroll
and nancial statement close
strategic
perspective
≥
3 years
CORPORATE GOVERNANCE REPORT
83
ELEKTA ANNUAL REPORT 2021/22
The globally dened minimum internal control requirements over
nancial reporting comprise entity level controls that are regulated
through Elekta’s steering documents at Group-wide level, the busi-
ness management system and internal control frameworks of stan-
dard controls that include general IT controls and uniform process
controls for all Elekta companies and locally dened controls where
necessary. The controls included in the internal control framework
are documented in RACMs as standard models for all entities and
then specically for each individual entity. All controls in the internal
control framework are based on risk assessments of nancial ows
that impact the nancial reporting in general and more specically
for the individual entities.
Information and communication
Information and communication regarding risk management and
internal control over nancial reporting relates to both internal and
external information and communication.
Internal information about important internal steering docu-
ments for risk management and internal control over nancial
reporting, including RACMs, as well as the communication policy
and processes, work instructions and other relevant information in
the Elekta business management system, are channeled down the
organization and communicated to relevant personnel on the
Group’s intranet. Internal information regarding the status of the
eective design and operating eectiveness of risk management
and internal control over nancial reporting are channeled up the
organization, based on the result of the monitoring, in order for
management at dierent levels to be able to take corrective actions
as necessary. The President and CEO and the Chief Audit Executive
in turn inform the audit committee and the Board, respectively, of
the results of the monitoring in order for them to be able to fulll
their oversight responsibility. This communication normally takes
place at the ordinary audit committee meetings and board meet-
ings, respectively.
Elekta provides the nancial markets and other stakeholders
withcontinuous external information and communication regard-
ing the Group’s and Elekta AB’s nancial performance and position
in accordance with the communication policy.
External information and communication
regarding nancial reporting is provided in
the form of:
• Interim reports, year-end reports and annual reports
• Press releases on news and events that may signi-
cantly aect the Group’s valuation and future
prospects
• Presentations and telephone conferences for nancial
analysts, investors and media representatives on
aregular basis
See information, including reports, press releases and presentations,
on the Elekta website
www.elekta.com. Elekta observes a silent
period prior to each interim and year-end report.
Monitoring
Monitoring of internal control over nancial reporting is carried out
through ongoing evaluations, separate evaluations, or some combi-
nation of the two, to ascertain whether the ve components of risk
management and internal control are present and functioning:
control environment, risk assessment, control activities, information
and communication, as well as monitoring.
Ongoing evaluations are routine operations, built into processes.
Monitoring takes place on a real-time basis by operational manag-
ers and personnel and periodically by management at dierent
levels of the Group, and the audit committee and the Board, and
includes, for example, monitoring of the following:
• Business and nancial performance
• Order bookings and revenue recognition
• Compliance reports from the compliance function
• Internal audit reports from the RA&Q functions related to,
forexample, the quality system and regulatory compliance
• Internal audit planning
• Internal audit reports from the internal audit function
• External audit reports from the external auditor
Special evaluations may be performed through:
• Periodic reviews of whether risk management and internal
control are operating as intended by nancial managers
and general management at local, regional, business area
and Group level as applicable
• Internal control compliance conrmation questionnaire,
atool for local management to report on the status of
eective design and operating eectiveness of the globally
dened minimum internal control requirements over
nancial reporting documented in RACMs
• Internal audit according to the internal audit plan
Instructions and budget approvals of internal control for nancial
reporting are conducted by the audit committee on behalf of the
Board and require supporting documentation in the form of pre-
sentation of status, progress and solutions, as well as supporting
appendices such as internal audit reports and internal control
reports. Status, progress and solutions for internal control over
nancial reporting are discussed at the audit committee meeting
and instructions are documented and, where approvals are
required, approvals are performed and documented accordingly.
The audit committee subsequently briefs the Board of Directors at
the next board meeting and provides supporting documentation
for discussion and approval.
“ Elekta’s Internal Control
Framework brings a system-
atic, disciplined ap proach
to evaluate and improve
the eectiveness of risk
management, control, and
governance processes. “
Jonny Lövgren
Chief Audit Executive, Elekta
CORPORATE GOVERNANCE REPORT
ELEKTA ANNUAL REPORT 2021/22
84
Activities performed in
the scal year 2021/22
During the scal year 2021/22, the performed activities
have primarily focused on review of timeliness and qual-
ity of internal control performance, improvement of
management reporting regarding adherence to the
internal control framework as well as ongoing internal
control improvements. In addition, the implementation
of the internal control framework in some small-sized
new group companies has continued as planned. Risk-
based reviews on the quality of nancial reporting,
underlying processes and control points in smaller and/
or new entities have been carried out. Annual update of
the internal control framework has been performed
according to plan as well as annual sign-o by manage-
ment. Information relating to the results of the inde-
pendent reviews were addressed at the meetings of the
audit committee and subsequently followed up by the
Board.
Planned activities for
the scal year 2022/23
During the scal year 2022/23, focus will be on reviews
of timeliness and quality of internal control perfor-
mance and also increase eciency and centralization
of control performance. Furthermore, on-going imple-
mentation of internal control framework in new entities
will be continued and any new entities will be included
continuously. Also, additional risk-based reviews on
thequality of nancial reporting, underlying processes
and control points in smaller and/or new entities will
continue.
CORPORATE GOVERNANCE REPORT
85
ELEKTA ANNUAL REPORT 2021/22
1
4
7
2
3
5 6
Board of Directors
CORPORATE GOVERNANCE BOARD OF DIRECTORS
ELEKTA ANNUAL REPORT 2021/22
86
First elected: 2011
Member of the board Member of the
compensation and sustainability committee
Attendance:
10/10 4/4
Total fees (SEK):
605,000 90,000
Year of birth: 1956
Education: MSc and Doctor of Physics, Federal
Institute of Technology ETH in Zurich
Independence:
Other board assignments: Board chairman: Ondal
Medical Systems GmbH. Board member: Nord A/S,
LAP GmbH and Audeering GmbH
Holdings
1)
: 17,50 0 B -share s
Principal work experience: CEO of Amann
Girrbach AG. Independent consultant focusing on
the medical technology industry and interim CEO at
DORC BV (2016) and Ondal Medical Systems (2013).
Before that, CEO of Dräger Medical AG (2000–2006).
At Siemens from 1986 until 2000, as CEO of the
Ultrasound Division (1998–2000) and President
of the Special Products Division (1995–1998).
4 Wolfgang Reim
First elected: 2010
Member of the board
Member of the audit committee
Attendance:
9/10 6/6
Total fees (SEK):
605,000 160,000
Year of birth: 1957
Education: MSc in Industrial Engineering
andManagement, Linköping University
Independence:
Other board assignments: Board chairman:
Peak Management AG. Board Member: IKEM
(Innovation and Chemical Industries in Sweden)
and CEFIC (the European Chemical Industry
Council)
Holdings
1)
in Elekta AB: 38,800 B-shares
Principal work experience: President and CEO of
Perstorp Holding AB. Previously President and CEO
of Ferrostal AG (2010–2012). Operating partner of
the US private equity fund Apollo in London (2009–
2010). CEO of Clariant AG in Basel (2006–2008). CEO
of SICPA in Lausanne (2003–2005). Various leading
positions in the ABB Group (1982–2002).
5 Jan Secher
First elected: 2005
Member of the board
Chairman of the audit committee
Attendance:
10/10 6/6
Total fees (SEK):
605,000 250,000
Year of birth: 1957
Education: MBA, Harvard Business School; MSc
in Chemical Engineering and Bio technology, Royal
Institute of Technology (KTH) in Stockholm
Independence:
Other board assignments: Board chairman:
Industrifonden and Min Doktor. Board member:
Bure Equity AB, Pandora AS, Asker Healthcare AB,
BCB Medical Oy and Rhenman & Partners Asset
Management
Holdings
1)
: 8,100 B-shares
Principal work experience: President and CEO of
Memira Group (2010–2013). CEO of Semantix Group
(2005–2009). COO/CFO of Telefos (2001–2005).
Before that various management positions,
including McKinsey, Gambro and Åhléns.
6 Birgitta Stymne Göransson
First elected: 1972
Board chairman Chairman of the
compen sation and sustainability committee
Attendance:
10/10 4/4
Total fees (SEK):
1,410,000 135,000
Year of birth: 1952
Education: MBA and PhD in Economics,
Stockholm School of Economics
Independence:
Other board assignments: Board chairman:
Leksell Social Ventures andStockholm School
ofEconomics. Board member: International
Chamber of Commerce (ICC) and Elekta
Foundation
Holdings
1)
: 14,980,769 A-shares and
7,756,624 B-shares
Principal work experience: Founder ofElekta
and Executive Director (2005–2013), President and
CEO (1972–2005). Founder and partner of Nordic
Management AB (1980–1986). Among others,
Assistant Professor and Faculty member of
Stockholm School of Economics, IFL and INSEAD
Fontainbleau, and Visiting Scholar atHarvard
Business School.
1 Laurent Leksell
First elected: 2017
Member of the board Member of the
compensation and sustainability committee
Attendance:
10/10 4/4
Total fees (SEK):
605,000 90,000
Year of birth: 1981
Education: BSc in Business Administration,
Stockholm University; Marketing studies at
Wharton School at the University of Pennsylvania
and at Columbia Business School
Independence:
Other board assignments: Board chairman:
Bonit Invest S.A./N.V. Board member:
Leksell Social Ventures’ investment committee
Holdings
1)
: 182,308 B-shares
Principal work experience: Extensive experience
in the areas of digital strategy, communication
and technology. Currently responsible for major
international business in the role as industry
manager at Google.
2 Caroline Leksell Cooke
First elected: 2015
Member of the board
Member of the audit committee
Attendance:
10/10 6/6
Total fees (SEK):
605,000 160,000
Year of birth: 1961
Education: BSc in Business Administration,
Stockholm School of Economics
Independence:
Other board assignments: Board chairman:
Getinge AB and Arjo AB. Board member:
Mölnlycke Health Care AB, The Dunker Founda-
tions, Chalmers University of Technology Founda-
tion, Trelleborg AB and Stena Adactum AB
Holdings
1)
: 30,000 B-shares
Principal work experience: Extensive experience
from the medical technology industry, among
others as president and CEO of Getinge AB (1997–
2015). Before that various positions within the
Getinge Group and Electrolux Group.
3 Johan Malmquist
First elected: 2018
Member of the board Member of the
compensation and sustainability committee
Attendance:
10/10 4/4
Total fees (SEK):
605,000 90,000
Year of birth: 1965
Education: Master of Divinity, Uppsala University
Independence:
Other board assignments: Board chairman:
Elekta Foundation, European Institute of Public
Administration (EIPA), NL, and Uppsala University
Alva Myrdal Center for Nuclear Disarmament.
Board member: Integrum AB, The Royal Swedish
Library (KB)
Holdings
1)
: 4,000 B-shares
Principal work experience: CEO of the Beijer
Foundation and Anders Wall Foundation. Member
of the European Parliament (2009–2019). M.P. in
the Swedish Parliament (2002–2009). Priest within
the Swedish Church (since 1994).
7 Cecilia Wikström
1)
Own and closely related parties’
holdings in Elekta AB as per April
30, 2022. For current holdings
see
www.elekta.com
Independence:
Independent of the Company
and the executive management
and independent of the major
shareholders.
Independent of the Company
and the executive management,
notindependent of the major
shareholders.
BOARD OF DIRECTORS CORPORATE GOVERNANCE
87
ELEKTA ANNUAL REPORT 2021/22
Executive Management
President and CEO
Employed since: 2009
Holdings
1)
: 39,000 B-shares
Year of birth: 1977
Education: MSc in Business Administration,
Stockholm School of Economics
Principal work experience: CFO at Elekta during
2017–2020 and several dierent leadership roles at
Elekta since 2009. Prior to Elekta experience from
management consulting rms BCG and Booz
Allen Hamilton.
1 Gustaf Salford
President Linac Solutions
Employed since: 2019
Holdings
1)
: 8,787 B-shares
Year of birth: 1958
Education: Medical Doctor in Internal Medicine
and Haemato-Oncology, Nancy-Université in
Lorraine; MBA, Business School HEC Paris.
4 Lionel Hadjadjeba
CFO
Employed since: 2022
Holdings
1)
: –
Year of birth: 1978
Education: MSc in Industrial Engineering and Business
Management, Royal Institute of Technology (KTH) in
Stockholm; MSc in Business Administration and
Economics, Stockholm University
Principal work experience: CFO at Recipharm during
2018–2021. Before that experience from senior man-
agement positions at LEAX, Electrolux, SAS and
Accenture.
2 Tobias Hägglöv
President Oncology Informatics Solutions
Employed since: 2006
Holdings
1)
: –
Year of birth: 1970
Education: BSc in Health Science,
University of Sydney.
3 Andrew Wilson
President Brachy Solutions
Employed since: 2011
Holdings
1)
: 17,300 B-shares
Year of birth: 1964
Education: MSc in Human Nutrition
and Physiology, and PhD in Toxicology,
Wageningen University & Research.
5 John Lapré
1
4
2
3
5
CORPORATE GOVERNANCE EXECUTIVE MANAGEMENT
ELEKTA ANNUAL REPORT 2021/22
88
EVP Global Services
Employed since: 2017
Holdings
1)
: 5,800 B-shares
Year of birth: 1974
Education: MSc in Electrical Engineering, Royal
Institute of Technology (KTH) in Stockholm.
7 Paul Bergström
Chief Product Ocer
Employed since: 2011
Holdings
1)
: 22,716 B-shares
Year of birth: 1971
Education: MSc in Mechanical Engineering,
Delft University of Technology; MSc in General
Management, Nyenrode Business Universiteit
inBreukelen.
8 Maurits Wolleswinkel
EVP Region Europe
Employed since: 2021
Holdings
1)
: 8,700 B-shares
Year of birth: 1975
Education: MSc in Industrial Engineering and
Management Science, Eindhoven University
ofTechnology.
9 Ardie Ermers
President Neuro Solutions
Employed since: 2008–2010 and since 2012
Holdings
1)
: 8,581 B-shares
Year of birth: 1980
Education: Radiation Therapist, Munich.
6 Verena Schiller
76
8 9
1)
Own and closely related parties’ holdings
in Elekta AB as per April 30, 2022. For current
holdings see
www.elekta.com
EXECUTIVE MANAGEMENT CORPORATE GOVERNANCE
89
ELEKTA ANNUAL REPORT 2021/22
General Counsel and EVP
Employed since: 2001
Holdings
1)
: 17,000 B-shares
Year of birth: 1966
Education: Master of Laws,
Stockholm University.
14 Jonas Bolander
EVP Human Resources
Employed since: 2017
Holdings
1)
: 7,120 B -share s
Year of birth: 1966
Education: MSc in Chemical Engineering, Royal
Institute of Technology (KTH) in Stockholm;
Behavioural Science, Stockholm University.
13 Karin Svenske Nyberg
Acting EVP Region Americas
Employed since: 2007
Holdings
1)
: –
Year of birth: 1974
Education: BSc in Business Administration,
Baylor University, Texas.
10 Carlos Castilleja
2)
EVP Region Turkey, India, Middle East, Africa,
APAC & Japan
Employed since: 2018
Holdings
1)
: 2,000 B-shares
Year of birth: 1964
Education: MSc in Biomedical Engineering,
University of Technology of Compiègne; Electrical
Engineering degree, Jesuits Saint Joseph Univer-
sity of Beirut; Marketing degree, Business School
HEC Paris.
11 Habib Nehme
EVP Region China
Employed since: 2009
Holdings
1)
: –
Year of birth: 1964
Education: MSc in Biomedical Engineering,
Huazhong University of Science and Technology
in Wuhan.
12 Anming Gong
10 11
12
1413
1)
Own and closely related parties’ holdings in
Elekta AB as per April 30, 2022. For current
holdings see
www.elekta.com
2)
Larry Biscotti was EVP Region Americas
until May 2022.
Koncernledning, forts.
CORPORATE GOVERNANCE EXECUTIVE MANAGEMENT
ELEKTA ANNUAL REPORT 2021/22
90
1)
This is a translation of the original auditors’ report in Swedish. In the event of any dierences
between the translation and the original statement in Swedish, the Swedish version shall prevail.
Auditor’s report
on the corporate
governance statement
To the general meeting of the shareholders of Elekta AB (publ), corporate identity number 556170-4015
Engagement and responsibility
It is the Board of Directors who is responsible for the corporate gov-
ernance statement for the year 2021-05-01 – 2022-04-30 on pages
73–90 and that it has been prepared in accordance with the
Annual Accounts Act.
The scope of the audit
Our examination has been conducted in accordance with FAR’s
auditing standard RevU 16
The auditor’s examination of the corpo-
rate governance statement
. This means that our examination of
the corporate governance statement is dierent and substantially
less in scope than an audit conducted in accordance with Interna-
tional Standards on Auditing and generally accepted auditing
standards in Sweden.
We believe that the examination has provided us with sucient
basis for our opinions.
Opinions
A corporate governance statement has been prepared.
Disclosures in accordance with chapter 6 section 6 the second
paragraph points 2–6 the Annual Accounts Act and chapter 7
section 31 the second paragraph the same law are consistent
withthe annual accounts and the consolidated accounts and
arein accordance with the Annual Accounts Act.
Stockholm, 8 July 2022
Ernst & Young AB
Signature on original auditors’ report in Swedish
1)
Rickard Andersson
Authorized Public Accountant
AUDITOR’S REPORT CORPORATE GOVERNANCE
91
ELEKTA ANNUAL REPORT 2021/22
Remuneration Report
2021/22
Introduction
This report describes how Elekta AB (publ) has applied the guide-
lines for remuneration to executive management, adopted by the
Annual General Meeting (AGM) 2020, in the scal year 2021/22. One
senior executive at Elekta is covered by this report, Elekta’s Presi-
dent and CEO. The report has been prepared in accordance with
the Swedish Companies Act and the Rules on Remuneration of the
Board and Executive Management and on Incentive Programmes
issued by the Swedish Corporate Governance Board, and will be
approved by the AGM. The remuneration report will be available on
Elekta´s website
www.elekta.com atthe time of the AGM 2022.
Further information on executive remuneration is available in
Note 7. Information on the work ofthe compensation and sustain-
ability committee during the scal year is set out in Elekta’s corpo-
rate governance report available on
page 73. Remuneration of
the Board of Directors is not covered by this report, such remunera-
tion is resolved annually by the AGM and disclosed in
Note 7 and
on
page 87.
Key events and key gures in 2021/22
On
page 6, the President and CEO summarizes the scal year
2021/22 and Elekta´s result. In the summary, information around key
events which have impacted the remuneration will be available in
more detail.
Elekta’s remuneration guidelines:
purpose, scope and deviations
A prerequisite for the successful implementation of Elekta’s strat-
egy and safeguarding of its long-term interests, including its sus-
tainability, is that the company can recruit and retain qualied per-
sonnel. To this end, it is necessary that Elekta oers competitive
remuneration. The remuneration structures shall encourage
employees to do their utmost to safeguard shareholders’ interests
and thereby Elekta’s sustainability and long-term value creation.
According to the remuneration guidelines for executive manage-
ment, they shall include a well-balanced combination of xed sal-
ary, variable remuneration, long-term incentive programs, pension
benets and other benets, as well as terms governing termination,
where applicable. This combination of remuneration strengthens
and supports short- and long-term targeting and target fullment.
The total compensation shall be on market terms on the geo-
graphic market where the individual resides or works. Applied remu-
neration levels shall be reviewed annually in comparison with equiv-
alent positions on the market, to ensure that Elekta is able to
attract and retain skills critical for the business where so required.
The auditor shall review if the company has complied with the
remuneration guidelines to executive management. Theauditor’s
report will be available on Elekta’s website
www.elekta.com
atthe time for the AGM 2022 togetherwith other AGM material.
No remuneration has been reclaimed during the scal year.
In addition to remuneration covered by the remuneration guide-
lines, the AGM of the company may resolve to implement long-
term share-related incentive plans. Elekta has three outstanding
share programs called performance share plans and they are
described in
Note 7.
“ Our remuneration guidelines
safeguard shareholders’
interests by strengthening
and supporting long-term
sustainable value creation. ”
Wolfgang Reim
Member, Elekta’s compensation
and sustainability committee
CORPORATE GOVERNANCE REMUNERATION REPORT
ELEKTA ANNUAL REPORT 2021/22
92
Total remuneration of the President and CEO in 2021/22 (TSEK)
Fixed remuneration Variable remuneration
Proportion of xed
and variable
Name (position)
Annual
base salary Pension
Other
benets
One-year
incentives
1)
Multi-year
incentives
2)
Total
remuneration Fixed Variable
Gustaf Salford (President and CEO) 7,896 1,969 114 4,810 594 15,384 59% 41%
1)
One-year incentives (STI 2021/22 and other bonus) earned in 2021/22.
2)
Multi-year incentive cost allocated in 2021/22. For actual vested reward, see table multi-year variable remuneration (LTI 2019/22) below.
Performance of the President and CEO in 2021/22
One-year variable remuneration (STI 2021/22)
Name (position) Performance criteria
1)
Relative weighting of
performance criteria
Measured performance and
Remuneration outcome (MSEK)
Gustaf Salford (President and CEO) Group net sales
from Solutions
25% Threshold for payout: 6,595
Cap for maximum payout: 13,048
Performance outcome
2)
: 8,385
Group net sales
from Service
25% Threshold for payout: 4,590
Cap for maximum payout: 8,606
Performance outcome
2)
: 5,720
Group operating
income (EBIT)
25% Threshold for payout: 1,676
Cap for maximum payout: 3,144
Performance outcome
3)
: 1,678
Group cash ow
4)
25% Threshold for payout: 720
Cap for maximum payout: 1,350
Performance outcome: 450
1)
The performance criteria are reviewed and decided every year by the Board of Directors and the criteria shall support the short-term strategy
but also have a long-term view. Therefore, the performance criteria can be changed year by year.
2)
Group net sales outcome adjusted to budgeted rates.
3)
Excluding the contribution to Elekta Foundation of SEK 35 M reported in Q3 2021/22.
4)
After continuous investments.
Multi-year variable remuneration (LTI 2019/22)
Name (position) Performance criteria
Relative weighting of
performance criteria
Measured performance and
Remuneration outcome
Gustaf Salford (President and CEO) Total shareholder return (TSR) development
compared to OMXS30 share index
1)
100% Threshold for payout: +0.1%
Cap for maximum payout: ≥15%
1)
Performance share plan LTI 2019/22 described in detail under share programs in Note 7 in the Annual Report 2021/22.
Comparative information on the change of remuneration
1)
and company performance
over the last three scal years (TSEK)
2021/22 Change 2020/21 Change 2019/2020
Total remuneration for President and CEO position 15,384 12% 13,680 –9% 15,027
Group operating income (EBIT)
2)
1,678,296 –12% 1,906,000 15% 1,657,000
Average remuneration on full time
equivalent basis employees
3)
in Sweden 773 –9% 852 4% 821
1)
Fixed and variable remuneration earned during each scal year.
2)
Excluding the contribution to Elekta Foundation of SEK 35 M reported in Q3 2021/22.
3)
Excluding members of the executive management.
REMUNERATION REPORT CORPORATE GOVERNANCE
93
ELEKTA ANNUAL REPORT 2021/22
FINANCIAL
REPORTING
ELEKTA ANNUAL REPORT 2021/22
94
Content
Board of Directors’ Report 96
Consolidated income statement
104
Consolidated statement of comprehensive income 104
Consolidated balance sheet 106
Changes in consolidated equity
108
Consolidated cash ow statement 110
Financial statements – Parent Company 112
NOTES 114
Note 1 Signicant accounting principles 114
Note 2 Financial risk management 116
Note 3 Financial instruments 119
Note 4 Estimates and assessments 123
Note 5 Segment reporting 124
Note 6 Net sales 125
Note 7 Salaries, other remuneration and social
security costs 126
Note 8 Depreciation/amortization/write-down 129
Note 9 Remunerations to auditors 129
Note 10 Expenses by nature 129
Note 11 Income from participations in
Group companies 129
Note 12 Net nancial items 129
Note 13 Interest income, interest expense
and similar items 130
Note 14 Taxes 130
Note 15 Earnings per share 132
Note 16 Intangible assets 132
Note 17 Leases 134
Note 18 Tangible assets 136
Note 19 Shares in subsidiaries 137
Note 20 Shares in associated companies 137
Note 21 Other nancial assets 138
Note 22 Inventories 138
Note 23 Accounts receivable and contract assets 138
Note 24 Other current receivables 139
Note 25 Cash and cash equivalents and
short-term investments 139
Note 26 Equity 140
Note 27 Interest-bearing liabilities 140
Note 28 Provisions 141
Note 29 Customer contract related balances
and order backlog 143
Note 30 Accrued expenses 143
Note 31 Other current liabilities 143
Note 32 Assets pledged 144
Note 33 Contingent liabilities 144
Note 34 Cash ow statement 144
Note 35 Related party transactions 145
Note 36 Business combinations 145
Note 37 Average number of employees 146
Note 38 Signicant events after the reporting
period 146
Board of Director´s signatures 147
Auditor’s report 148
“ In 2021/22 Elekta’s protability has been
adversely impacted by higher pandemic-
related costs within supply chain, logistics
and service as well asination. This was
partly oset by underlying sales growth,
although still at a lower rate than pre-
pandemic growth levels. ”
Tobias Hägglöv
CFO, Elekta
BOARD OF DIRECTORS’ REPORT FINANCIAL REPORTING
95
ELEKTA ANNUAL REPORT 2021/22
The Board of Directors and the CEO of Elekta AB (publ), corporate
identity number 556170-4015 and registered oce in Stockholm,
hereby submit the consolidated nancial statements and annual
report for the scal year 2021/22, covering the period May 1, 2021 –
April 30, 2022. Amounts in parentheses indicate values for the pre-
vious scal year. Elekta AB (publ) isreferred to as “Elekta AB” or “the
Parent Company” and theElekta Group, which includes Elekta AB
and its subsidiaries, is referred to as “Elekta” or “the Group”.
Elekta’s operations
Elekta’s treatment solutions and oncology informatics port-
folios are designed to enhance the delivery of radiation therapy,
radiosurgery and brachytherapy, and to drive cost eciency in
clinical workows.
At the end of 2021/22 Elekta had an installed base of approxi-
mately 6,900 devices. The Group has a good attach rate of
service contracts to the installed base. Around 60 percent of net
sales comes from Solutions and around 40 percent from Service.
Elekta’s operations are divided into three geographical regions:
• Americas
• EMEA
• APAC
Market
The global market development for Elekta’s solutions is driven by
the need for qualitative cancer care at an aordable cost.
Cancer incidence and prevalence are increasing. More patients
are surviving their cancer, which increasingly makes cancer a
chronic disease with growing number of patients all over the world
in need of long-term care. The cost of cancer care is increasing and
the demands for cost eciency in health systems and among care
providers is an important part of the market dynamics. This bene-
ts solutions within radiation therapy which is one of the most
cost-eective treatment solutions.
In the wake of Covid most markets are also focused on reducing
the number of treatments per patients, so-called hypofraction-
ation, enabled by the state-of-the-art devices with high precision.
A complete radiation therapy program includes various technolo-
gies in Elekta’s product portfolio. New advancements in precision,
accuracy and eectiveness will increase the need for radiotherapy.
Information management solutions constitute an important ele-
ment in care delivery where hospital information systems and can-
cer informatics are other important elements of Elekta’s solutions.
There is a signicant shortage of radiotherapy capacity, which is
Board of Directors’ Report
important in understanding the potential and market in many
low-income economies.
Increasingly precise diagnosis of each tumor, and a continuously
expanding range of therapy options is transforming oncology care
to more integration between diagnosis and radiotherapy treat-
ment.
Competition
The main competitor in the global market, with a comprehensive
product range and overlap with Elekta, is Siemens Healthineers
after their acquisition of Varian Medical Systems. Elekta is one of
the largest suppliers of radiation therapy solutions. For the emerg-
ing markets, Elekta is the largest supplier. To support customer’s
need accross the cancer care ecosystem Elekta has deepened its
partnership with the imaging player Royal Philips and set up a com-
mercial partnership with another imaging player, GE Healthcare.
From a competitive perspective there are also various companies
addressing specic segments within radiation therapy. Companies,
such as Accuray with radiosurgery solutions, Bebig with brachy-
therapy products, ViewRay with MR- Linac as well as RaySearch
with software solutions, are part of Elekta’s competitive landscape.
Hospital Information System (HIS) companies are addressing the
HIS market with hospital wide solutions where cancer care is one of
many dierent specialties. In addition, there are a number of com-
panies with products and applications supporting dierent aspects
of cancer care processes.
Financial guidance
Elekta’s strategy is built around four main strategic pillars:
• Accelerate innovation with customer utilization in mind
• Drive partner integration across the cancer care ecosystem
• Be the customers’ lifetime companion
• Drive adoption accross the globe
These pillars shall drive sustainable protable growth and
create the next generation trement, workows and customer
engagement models. The strategy is regularly reviewed and evalu-
ated by the Board of Directors and the strategic plan is the base for
the execution of Elekta’s operations.
Due to uncertainties related to the development of the pandemic
Elekta did not publish an outlook for the scal year 2021/22. In May,
2021, Elekta published a mid-term outlook. Until scal year 2024/25
Elekta will target:
• Net sales CAGR of above 7 percent
• EBIT margin percent expansion
• Dividend policy of at least 50 percent of net income
For the scal year 2022/23 no outlook has been published due
to the continued impact from the pandemic and recent geo-
political and macro economic challenges.
Fiscal year 2021/22
Order intake and order backlog
The pandemic and locked down countries continued to have a neg-
ative impact on order intake, but towards the end of the scal year
most parts of the world had gradually lifted the restrictions. At
year-end there were additional challenges due to the changing
FINANCIAL REPORTING BOARD OF DIRECTORS’ REPORT
ELEKTA ANNUAL REPORT 2021/22
96
geopolitical situation. For the full year gross order intake increased
based on constant exchange rates by 4 percent and 5 percent in
SEK. The order backlog was SEK 39,656 M on April 30, 2022, com-
pared with SEK 33,293 M on April 30, 2021. Orders that are canceled
or not expected to materialize as planned are removed from the
order backlog. The positive translation eect due to the conversion
to closing exchange rates amounted to SEK 3,763 M (negative
3,524).
Geographic region: Americas
In Americas gross order intake was atwith SEK 5,570 M (5,579),
corresponding to a 2 percent decrease based on constant exchange
rates. The decrease was mainly due to strong comparable gures
asElekta’s largest order ever was booked last year. Order intake in
Latin America increased compared to the previous year.
Net sales increased by 9 percent to SEK 4,254 M (3,888), corre-
sponding to an increase of 7 percent based on constant exchange
rates. Both North and Latin America had a positive development.
Revenue from Solutions represented 43 percent (40) of the region’s
total net sales. The contribution margin in the region amounted to
39percent (39).
For information on the market characteristics of the region
Americas see
page 31.
Geographic region: EMEA
Gross order intake in EMEA increased by 13 percent to SEK 7,165 M
(6,353) and by 12 percent based on constant exchange rates. Order
intake grew double-digits in both Europe and the Middle East and
Africa.
Net sales increased by 4 percent to SEK 5,321 M (5,140), corre-
sponding to an increase of 2 percent based on constant exchange
rates. The development in Europe as well as in the Middle East and
Africa was positive. Revenue from Solutions represented 61 percent
(61) of the region’s total net sales. The contribution margin in the
region amounted to 34 percent (37).
For information on the market characteristics of the region EMEA
see
page 32.
GROSS ORDER INTAKE NET SALES
Americas, SEK 5,570 M
EMEA, SEK 7,165 M
APAC, SEK 5,628 M
Americas, SEK 5,570 M
EMEA, SEK 7,165 M
APAC, SEK 5,628 M
Americas, SEK 4,254 M
EMEA, SEK 5,321 M
APAC, SEK 4,972 M
Americas, SEK 4,254 M
EMEA, SEK 5,321 M
APAC, SEK 4,972 M
The scal year 2021/22
• Gross order intake amounted to SEK 18,364 M
(17,411), an increase of 4percent in constant
exchange rates
• Net sales amounted to SEK 14,548 M (13,763),
an increase of 4 percent in constant exchange
rates
• Operating income (EBIT) was SEK 1,643 M
(1,906), corresponding to an EBIT margin of
11.3 percent (13.9)
• Net income for the year amounted to SEK 1,157 M
(1,253)
• Earnings per share amounted to SEK 3.02 (3.28)
before/after dilution
• Cash ow from operating activities amounted
to SEK 1,858 M (2,551), representing an opera-
tional cash conversion of 69 percent (82)
• Cash ow after continuous investments
amounted to SEK 450 M (1,706)
• The Board of Directors proposes to the AGM
adividend of SEK 2.40 (2.20) per share for
2021/22
4%
order growth based on
constant exchange rates
BOARD OF DIRECTORS’ REPORT FINANCIAL REPORTING
97
ELEKTA ANNUAL REPORT 2021/22
Geographic region: APAC
Gross order intake in APAC increased by 3 percent to SEK 5,628 M
(5,479), corresponding to a 1 percent increase based on constant
exchange rates. India was, together with Australia, a strong growth
driver in the region, whereas China was at based on a contracting
market at the end of the year.
Net sales increased by 5 percent to SEK 4,972 M (4,735), corre-
sponding to an increase of 4 percent based on constant exchange
rates. The positive development was related to both the mature
and emerging markets in the region. Revenue from Solutions repre-
sented 73 percent (74) of the region’s total net sales. The contribu-
tion margin in the region amounted to 31 percent (32).
For information on the market characteristics of the region APAC
see
page 34.
Net sales
The pandemic continued to have a negative impact on net sales
throughout the scal year as travel restrictions and limited access
to hospitals led to delayed installations. Net sales for the full year
increased by 6 percent to SEK 14,548 M (13,763), equivalent to an
increase of 4 percent based on constant exchange rates. Solutions
and Service had equally growth rates of 6 percent in SEK, although
revenue for Solutions had a larger positive currency impact. Based
on constant exchange rates Solutions grew 4 percent and Service
5percent. Geographically net sales increased in all three regions.
For net sales in the regions see each section above.
Earnings
Gross margin was 37.4 percent (40.8). The decrease compared to
last year was explained by higher logistics and supply chain costs
and higher costs to serve the installed base.
EBITDA amounted to SEK 2,682 M (3,110).
Operating income decreased by 14 percent and amounted to
SEK1,643 M (1,906). The operating income decreased due to lower
gross margin and increased operating expenses. Selling expenses
increased 17 percent driven by more travelling and marketing activi-
ties with additional physical exhibitions compared to previous year
as well as provision related to the war in Ukraine. Administration
costs increased 5 percent driven by more investments in digitaliza-
tion and one-o project related costs. The eect from changes in
exchange rates was SEK 155 M (97), including hedges. Operating
income was positively impacted by a reversed additional purchase
price of SEK 48 M, while the contribution to Elekta Foundation, as
decided by AGM 2021, impacted the operating income negatively
by SEK 35 M. Operating margin was 11.3 percent (13.9).
Net nancial items amounted to SEK –142 M (–277), of which
SEK–41 M (–41) consisted of interest on lease liabilities under IFRS 16.
Income after nancial items amounted to SEK 1,501 M (1,630)
andtax amounted to SEK –345 M (–377) representing atax rate of
23 percent (23). Net income for the year amounted to SEK 1,157 M
(1,253).
Earnings per share amounted to SEK 3.02 (3.28) before and after
dilution. Return on shareholders’ equity amounted to 14 percent
(16) and return on capital employed amounted to 12 percent (12).
Partnership with Royal Philips
In June, 2021, Elekta and Royal Philips
signed a non-exclusive agreement
todeepen their existing strategic part-
nership. Through deeper cross-port-
folio collaboration, Elekta and Royal
Philips will utilize their complementary
capabilities to further improve patient
care. The partnership also intends to
further deliver a superior experience in
diagnosis and adaptive, personalized
treatments for clinicians, shorter
treatment times and more precise
therapy for patients, and lowered care
costs for healthcare providers.
Signicant events during the year
Elekta Harmony received
clearance by FDA
In June, 2021, Elekta announced that its
newest linear accelerator, Harmony, has
received 510(k) clearance from the U.S.
Food and Drug Administration (FDA).
Elekta Foundation
At the Annual General Meeting in August
Elekta’s shareholders approved the Board
of Directors’ proposal of a contribution of
SEK 35 M to establish the philanthropic
Elekta Foundation. The Foundation was
inaugurated in January, 2022.
MAY 2021 – APRIL 2022
FINANCIAL REPORTING BOARD OF DIRECTORS’ REPORT
ELEKTA ANNUAL REPORT 2021/22
98
Investments and depreciation
Continuous investments amounted to SEK 1,408 M (845). Invest-
ments in intangible assets increased and amounted to SEK 1,220 M
(678), mainly related to R&D investments in the Linac family,
Unityand software. Investments in tangible assets amounted to
SEK 188 M (167). Amortization of intangible assets and depreciation
of tangible xed assets amounted to a total of SEK 1,039 M (1,204).
Research and development
Elekta conducts research and development (R&D) aimed at
strengthening and enhancing its position as technology leader.
Costs related to the R&D function amounted to SEK 1,372 M (1,486).
Capitalization of development costs and amortization of capital-
ized development costs amounted to net SEK 673 M (–9), of which
SEK 675 M (–2) relates to the R&D function. Capitalization within the
R&D function amounted to SEK 1,157 M (676) and amortization to
SEK –482 M (–678). Projects in capitalization phases increased in line
with accelerated investments in innovations and amortizations
decreased due to lower amortization from Unity.
Cash ow
Cash ow from operating activities decreased by SEK 693 M to SEK
1,858 M (2,551). Cash ow after continuous investments decreased
to SEK 450 M (1,706) mainly due to higher investments in intangible
assets in accordance with the accelerated focus on innovation.
Operational cash conversion was 69 percent (82). The lower cash
ow was mainly related to lower result and higher investments in
intangible assets related toR&D investments in the Linac family,
Unity and software. For more information on the consolidated
cashow see
page 110.
Financial position
Cash and cash equivalents and short-term investments amounted
to SEK 3,077 M (4,411) and interest-bearing liabilities excluding lease
liabilities amounted to SEK 4,609 M (5,184). Thus, net debt amount-
ed to SEK 1,532 M (774). Net debt in relation to EBITDA was 0.57
(0.25). In December 2021 a sustainability-linked bond of SEK 1,500 M
was issued with a social KPIto renance maturities of SEK 1,000M in
Swedish bond market and loans of 36M GBP and 50M USD. The
exchange rate eect from the translation of cash and cash equiva-
lents amounted to SEK 183 M (–329). The translation dierence in
interest- bearing liabilities amounted to SEK 78 M (–216). Other com-
prehensive income was aected by exchange rate dierences from
translation of foreign operations amounting to SEK 758 M (–838).
For more information on the consolidated balance sheet see
page 106.
Employees
The average number of employees during the year was 4,631 (4,194).
The number of employees on April 30, 2022 totaled 4,751 (4,314).
Value added per average employee amounted to SEK 1,388 K
(1,432).
Increased market presence
To improve market access and strengthen
the relationship with customers Elekta
has established presence in markets in
which Elekta previously have been repre-
sented by distributors. A sales oce was
established in Indonesia in August 2021
and in the Philippines in February 2022. In
Turkey the long-time partner, Özyürek
Mümessillik ve Dış Ticaret A.Ş., was
acquired in September 2021.
Investment grade rating
from S&P
In October Elekta received an investment
grade rating from S&P Global Ratings
(S&P). S&P has assigned a BBB- rating to
Elekta and to the Group’s senior unse-
cured notes, with stable outlook. S&P
notes that Elekta’s rating reects the
global leading position, ability to intro-
duce new innovative treatment solutions
and the key credit strengths being low
leverage and stable cash generation.
Sustainability-linked bond
In December, 2021, Elekta issued Sweden’s
rst sustainability-linked bond with a pure
social key performance indicator. The
funds, SEK 1.5 billion, will contribute to
closing the global access gap within radi-
ation therapy through increasing the
number of linear accelerators in under-
served markets.
Tobias Hägglöv appointed CFO
In January, Elekta appointed Tobias
Hägglöv as Chief Financial Ocer (CFO).
Tobias Hägglöv has previously held the
role of CFO at Recipharm as well as
senior management positions at LEAX,
Electrolux, SAS and Accenture.
Elekta and IBA in collaboration
In March, Elekta entered into a collabora-
tive agreement with IBA to optimize quality
assurance (QA) solutions.
Partnership with
GE Healthcare
In April Elekta and GE Healthcare signed
aglobal commercial collaboration agree-
ment in radiation oncology to be able to
provide hospitals a comprehensive oering
across imaging and treatment for cancer
patients requiring radiation therapy.
BOARD OF DIRECTORS’ REPORT FINANCIAL REPORTING
99
ELEKTA ANNUAL REPORT 2021/22
Legal disputes
Elekta has no ongoing material legal disputes.
Signicant events after year-end
No events have occurred subsequent to the balance sheet date
that would have a material impact on the Elekta’s nancial
statements.
Impact from war in Ukraine
On February 24, 2022, Russia initiated an invasion of Ukraine.
In scal year 2020/21 and the rst nine-months of scal year 2021/22
group revenue in Russia, Belarus and Ukraine represented about
2percent. The war has had a negative impact on Elekta’s European
business in terms of orders, revenue and protability, including a
provision of receivables amounting to SEK 18 M. On a global scale
the war has impacted supply chain costs and prolonged lead times
further. Elekta has neither production nor Tier 1 suppliers in these
three countries.
Sustainability
Elekta presents sustainability information in the section Business
overview and In-depth Sustainability Report. Elekta AB has pre-
pared a statutory sustainability report in accordance with
Chapter6 Section 11 of the Swedish Annual Accounts Act. The
references to the statutory sustainability report are presented
on
page 72.
Quality
Elekta continues to focus on improving processes as one of the
company’s key strategic priorities. Elekta conducts regular audits
toensure compliance to established requirements from medical
regulatory authorities. Where appropriate Elekta’s development,
production or sales units are certied in accordance with relevant
ISO standards.
IT
During the scal year Elekta has been committed to the ongoing
expansion of cloud-based IT services and has renewed the Compa-
ny’s long-term partnerships with a number of leading cloud appli-
cation providers. Microsoft has become an increasingly important
strategic partner for productivity, security, and collaboration ser-
vices for Elekta as well as for the Company’s customer and partner
ecosystem. These new agreements include substantial cloud
capacity expansion for both internal business requirements and the
customer facing cloud computing services for Elekta’s clinical solu-
tions. This will allow for further migration of business applications
and product development activities into the cloud, enabling further
IT consolidation with higher contracted service levels to reduce
Data-Centre consumption, supporting Elekta’s sustainability
strategy through reduced carbon footprint.
The journey to digitalization and automation of Elekta’s pro-
cesses continues and the IT project portfolio has been focused on
arange of initiatives that support Elekta’s business plan for process
eciency and automation. Work has been particularly focused on
governance and cost controls in the supply chain and in the digitali-
zation of the customer support processes.
In these innovative projects, new ways of working have been
established to ensure global standardization and control of all
procurement needs. Elekta’s initiative to drive remote support
eectiveness, through a recent implementation of a leading IT inte-
gration platform, has been eective in ensuring that machine data
from the installed clinical systems can be more rapidly made avail-
able across the Company’s business ecosystem. The platform
ensures timely monitoring of system performance which enhances
predictive and proactive maintenance and a more automatic cus-
tomer support process.
Elekta continues to develop the Company’s digital capabilities
and has initiatives underway to build new secure workows that will
connect Elekta to the growing ecosystem of partners and custom-
ers across the globe.
Risks
During the year, the impact of Covid-19 has caused uncertainty
inorder growth, limited access to hospitals and increased risk of
delayed installations because of lock down of countries. A weak
economic development, strained nances, especially in light of
aprolonged impact of the pandemic, may mean less availability
ofnancing for private customers and reduced future healthcare
spending by governments. Geopolitical tensions, including restric-
tions and protectionism with a growth of sanctions may impact
Elekta’s local partnering, manufacturing and sales in certain mar-
kets as well as further expose Elekta to potentially conicting trade
compliance sanctions. The radiotherapy industry is characterized
by an increased demand for using and analyzing personal data or
treatment data in order to further develop the products. Elekta’s
solutions need to be protected against damage and undue interfer-
ence whilst also adhering to various data privacy laws and regula-
tions worldwide and an increasing threat of material cyber and
information security attacks targeting healthcare data has been
noted. Elekta witnesses an increased competition due to vendor
and customer consolidation as well as changing competition land-
scape within the medical imaging and informatics market. Elekta
continues to respond with development of state-of-the-art solu-
tions and focus on a unique value proposition. Corruption and risk
of improper payments continues to be a threat in many markets
having a growing need for access to radiotherapy and Elekta con-
tinuously work to strengthen its compliance programs and business
ethics preventive controls. Elekta’s operational, strategic, external,
and nancial risks are described on
page 37 together with the
risk management process. Elekta’s nancial risks are described in
more detail in
Note 2.
Sensitivity analysis
Elekta’s operation is project based with relatively big deliveries
tocustomers. The lead time from delivery to installation can there-
fore vary from period to period. Quarterly variations of delivery
volumes occur, which has a high impact on net sales and net
income each quarter. Elekta’s gross margin can also vary from
period to period depending on product and geographic mix and
currency movements.
As a result of its international operations and structure, Elekta
has a signicant exposure to exchange rate uctuations. This per-
tains primarily to expenses in GBP and CNY against revenue in USD
and EUR. Based on the year’s income, expense and currency struc-
ture a general change of 1percentage point in the SEK exchange
rate against other currencies would aect the Group’s net prot
FINANCIAL REPORTING BOARD OF DIRECTORS’ REPORT
ELEKTA ANNUAL REPORT 2021/22
100
and shareholders’ equity by approximately +/– SEK 25 M (23). In the
short term, the eect is reduced through hedging.
Based on the balance sheet structure at year-end a general
change of 1 percentage point in the interest on borrowings and
investments would aect the Group’s prot before tax by approxi-
mately +/– SEK 3 M (0).
Parent Company
The Parent Company of the Group, Elekta AB, conducts no operat-
ing activities but provides group management, joint group func-
tions and nancial management. Net income for the year
amounted to SEK 1,118 M (427) inclusive of dividends from subsidiar-
ies of SEK 1,101 M (354). Total assets amounted to SEK 9,543 M
(11,306) of which shares in subsidiaries amounted to SEK2,752 M
(2,590) and receivables from subsidiaries amounted to SEK 4,759 M
(5,089). Cash and cash equivalents and short-term investments at
year-end amounted to SEK 1,863 M (3,421). Shareholders’ equity
amounted to SEK 2,368 M (2,087). Interest-bearing liabilities
amounted to SEK 7,081 M (9,042), of which SEK 2,482 M (3,858) con-
stituted liabilities to subsidiaries. The average number of employees
during the year was 57 (45). The number of employees on April 30,
2022 was 60 (49). For further information refer to the Parent
Company’s nancial reports and the accompanying notes.
Shares
The total number of registered shares on April 30, 2022 was
383,568,409 divided between 14,980,769 A-shares and 368,587,640
B-shares. One series A-share entitles the holder to10 votes and
series B-shares entitle the holder to one vote foreach share. All
shares carry equal rights to participate in the Company’s assets
and prots. In accordance with Section 12 of Elekta’s Articles of
Association, series A-shares are subject to right of rst refusal. All
A-shares are owned indirectly by Laurent Leksell who is also the only
shareholder representing more than 10 percent of total votes. On
April 30, 2022, treasury shares amounted to 1,485,289 (1,485,289)
equivalent to 0.4 percent (0.4) of the total number of outstanding
shares as wellas of share capital. Regarding treasury shares, par
value is0.50 SEK per share and average cost is 49.70 SEK per share.
For more information on Elekta’s share see
page 41.
Dividend and proposal to repurchase shares
For 2021/22, the Board of Directors proposes to the AGM a dividend
of SEK 2.40 (2.20) per share. Totalproposed dividend amounts to
approximately SEK 917 M (841) and 79 percent (67) of the group net
prot for the year. It is also proposed that the dividend will be paid
in two installments, with one payment of SEK 1.20 per share in Sep-
tember 2022 and the remaining SEK 1.20 per share in March 2023.
The proposed record dates are August 29, 2022, for the rst pay-
ment and February 27, 2023, for the second payment.
The Board of Directors intends to propose to the 2022 AGM a
renewal of the board’s authorization to decide on the acquisition
ofa maximum number of own shares so that, after the acquisition,
the company holds no more than 10 percent of the total number
ofoutstanding shares in Elekta AB.
Appropriation of prot
Amounts in SEK April 30, 2022
Distributable shareholders’ equity
of the Parent Company
Premium reserve 656,608,114
Retained earnings 245,591,714
Prot for the year 1,117,970,581
Total 2,020,170,409
The Board of Directors propose:
to be distributed to the shareholders,
a total dividend of SEK 2.40 per share
1)
916,999,488
and that the remaining amount be carried
forward 1,103,170,921
Total 2,020,170,409
1)
The total amount distributed may change up until the record date depending
on changes in the number of shares.
The board’s statement on the proposed dividend
In making this proposal for dividend, the board has taken into
account the Parent Company’s dividend policy, equity/assets ratio
as well as its general nancial position, whereby the ParentCom-
pany’s ability to fulll existing and foreseeable payment obliga-
tions in a timely manner, as well as potential acquisitions and other
investments has been considered. The Parent Company’s equity
includes SEK–20 M pertaining to assets and liabilities measured at
fair value in accordance with Chapter 4 Section 14a of the Swedish
Annual Accounts Act. The equity ratio and liquidity is reassuring,
under the assumption that the Parent Company and the Group
continue to be protable. The impact of the proposed dividend on
the Group’s reported equity/assets ratio of 34 percent (33), will be
marginal. Concerning the ParentCompany’s and the Group’s
result and position in general, refer to the income statements,
statements of com prehensive income, balance sheets and cash
ow statements and notes.
It is the assessment of the Board of Directors that the proposed
dividend neither prevents the Parent Company, and other compa-
nies within the Group, from fullling their obligations, nor from mak-
ing the necessary investments. The proposed dividend can therefore
be justied in respect of Chapter 17, section 3, paragraphs 2 and 3
of the Swedish Companies Act (the prudence rule).
Articles of Association
The Articles of Association state that board members are
appointed and dismissed by the AGM. The Articles of Association
contain no specic regulations regarding changes to the Articles of
Association.
2.40
SEK/share, dividend proposal
BOARD OF DIRECTORS’ REPORT FINANCIAL REPORTING
101
ELEKTA ANNUAL REPORT 2021/22
Guidelines for remuneration
to executive management
The guidelines for remuneration to the executive management were
adopted by the AGM 2020 and will apply until the AGM 2024 at the
latest. The guidelines cover the President and CEO and members of
the executive management of Elekta. The guidelines shall apply to
employment agreements and any modications to employment
agreements executed after the AGM 2020. The guidelines do not
apply to remuneration decided on or approved by the general
meeting or such issues and transfers covered by Chapter 16 of
the Companies Act.
The guidelines’ promotion of Elekta’s business
strategy, long-term interests and sustainability
In order to successfully implement Elekta’s business strategy and to
foster Elekta’s long-term interests, including its sustainability, it is of
fundamental importance for Elekta and its shareholders that, from a
short-term and long-term perspective, the remuneration guidelines
attract, incentivise and create favourable conditions forretaining
skilled employees and managers. The guidelines are aimed at creating
increased transparency as regards remuneration issues and, through
a carefully considered remuneration structure, creating incentives for
executive management to execute strategic plans and achieve
Elekta’s nancial targets. To achieve this, it is important to maintain
fair and internally balanced terms which, at the same time, are
competitive on the market in terms of remuneration structure,
scope and level. For information regarding Elekta’s business
strategy, please see Elekta’s website.
Remuneration and forms of remuneration
Employment terms for executive management shall include a
well-balanced combination of xed salary, variable remuneration,
long-term incentive programs, pension benets and other benets,
as well as terms governing termination, where applicable. This
combination of remuneration strengthens and supports short-term
and long-term targeting and target ful-lment. The total compen-
sation shall be on market terms on the geographic market where
the individual resides or works. Applied remuneration levels shall be
reviewed annually in comparison with equivalent positions on the
market, to ensure that Elekta is able to attract and retain skills criti-
cal for the business where so required. Median salaries on the mar-
ket are determined through external benchmarking where such is
available. As far as possible, remuneration shall be based on perfor-
mance and thus the annual variable remuneration shall constitute
a relatively large portion of the total remuneration. The various
types of remuneration that may be paid out are described below.
Fixed salary
Fixed salary for executive management shall be individual and based
on each individual’s responsibilities and role in terms of individual skills
and experience in the relevant position as well as regional conditions.
In case of a maximum variable remuneration result, the xed salary
may amount to between 40 and 50 per cent of the total annual xed
salary and variable remuneration.
Variable remuneration
In addition to xed salary, executive management are entitled to
variable remuneration, referred to as an annual bonus. The variable
remuneration is structured as part of the total remuneration package
and shall primarily be related to results in terms of the Group’s nan-
cial targets (50–100 per cent of the variable remuneration). Other
non-nancial targets of particular interest, such as clearly dened
individual targets with respect to specic work duties within the
respective business area, shall also be used (0–50 per cent of the vari-
able remuneration). Variable remuneration targets shall be estab-
lished annually by the Board of Directors with the aim of ensuring that
they are in line with the Group’s business strategy and results targets.
Targets shall be structured so as to promote the Group’s business
strategy and long-term interests, including its sustainability, by being
clearly connected to the business strategy and promoting the long-
term development of the executive management.
The size of the variable remuneration varies depending on position
and may constitute between 30 and 70 per cent of xed annual salary
at full achievement of targets. Target fullment is measured, and any
payments made in respect thereof take place annually or quarterly. If
the nancial targets for variable remuneration are exceeded, there is
a possibility to pay additional remuneration in consideration of over-
performance. The annual bonus entails that there is potential to
receive, at most, 200 per cent of the variable remuneration in case of
over achievement of targets. Thus, payment of variable remuneration
is capped at 200 per cent of the original target for the variable remu-
neration and may entail, at most, that 140 per cent of the xed salary
can be paid out as variable remuneration. Target formulation is struc-
tured so that no variable remuneration or bonus is received in the
event a minimum performance level or threshold is not achieved.
Upon conclusion of the annual measurement period, an assess-
ment shall take place as to the extent to which targets have been
fullled, through an overall performance assessment. The Compen-
sation & Sustainability Committee is responsible for the assessment
with respect to variable salary for the President and CEO and other
executive management. Insofar as relates to nancial targets, the
assessment shall be based on audited nancial information pub-
lished by the Group.
Elekta may, at any given time, alter, discontinue or cancel parts of
the remuneration plan, or the entire plan. However, only in respect
of future performance at the time in question. Elekta may also, after
payment of remuneration, subsequently correct the remuneration
ifan error can be identied in a nal audit.
Share-related long-term incentive programs
The Board of Directors uses long-term incentive programs to ensure
alignment between the interests of the shareholders and the interests
of executive management and other key individuals in Elekta. The
Board of Directors shall each year assess whether a share-related
long-term incentive program should be proposed to the annual gen-
eral meeting. More information about current share programs is
available in Note 7 of the annual report and on Elekta’s website.
These long-term incentive programs promote the Group’s business
strategy and long-term interests including its sustainability by
strengthening the Group’s ability to recruit and retain employees,
diversifying and increasing share ownership among key individuals
and ensuring a shared focus on long-term growth in value for the
shareholders.
Special remuneration
Additional cash variable remuneration can be paid, with a delay in
payment up to 36 months, to ensure long-term commitment and
that key employees remain in connection with acquisitions of new
companies, divestments of businesses, other transitional activity or
other extraordinary work endeavours. Such delayed remuneration is
conditional on continued employment until a predetermined date in
order for any payment to take place, and is applied only in very special
cases, and thus is not included in any ordinary remuneration system.
The delayed remuneration may not exceed 50 per cent of the con-
tracted annual xed remuneration per year and thus may amount
to150 per cent of annual salary in the event of delayed payment for
36 months. The delayed remuneration shall otherwise comply with
FINANCIAL REPORTING BOARD OF DIRECTORS’ REPORT
ELEKTA ANNUAL REPORT 2021/22
102
the same principles as applicable to variable remuneration in the
Group. Decisions regarding special remuneration for extraordinary
endeavours shall be taken by the Board of Directors.
Pensions
When new pension agreements are entered into, executive manage-
ment who are entitled to pension shall only have dened contribution
pension agreements. With respect to executive management who
are Swedish citizens, retirement normally takes place at the age of
65and, with respect to others, in accordance with each country’s
pension regulations. The general rule is that pension provisions are
based only on xed salary and take place at market levels in each
country; however, pension provisions shall not exceed 40 per cent of
xed salary. Certain individual adjustments may occur in line with
local market practice or mandatory collective agreement provisions.
Other benets
Benets such as company car, compensation for preventive care
insurance, healthcare insurance and medical insurance, etc. shall con-
stitute a smaller element of the total compensation package and be
in accordance with what is customary on each geographic market.
Premiums and other costs for such benets may not, in total, exceed
20 per cent of xed salary. For executive management stationed in
acountry other than their country of domicile, additional compensa-
tion and other benets may be paid to a reasonable extent in light of
the particular circumstances associated with being stationed in a for-
eign country. This comprises, for example, ight costs, housing, term
fees, journeys home, assistance with tax returns and tax equalisation.
With respect to employment conditions governed by regulations
other than Swedish ones, insofar as relates to other benets, appro-
priate adjustments shall take place to comply with such mandatory
regulations or established local practice, whereupon the overarching
purpose of these guidelines shall be satised as far as possible.
Remuneration payable to Directors
Directors elected by the general meeting shall, in specic cases, be
entitled to receive fees and other remuneration for work performed
on behalf of Elekta, alongside board work. Fees on market terms,
which must be approved by other Directors, shall be payable in
respect of such services.
Termination terms and severance compensation
Termination periods within Elekta shall comply with the statutes and
agreements applicable on each geographic market. Termination peri-
ods with respect to executive management shall be between 6 and 12
months and, in specic cases, executive management are entitled to
severance compensation corresponding to 6–12 months’ xed salary.
In case of certain radical changes in the ownership structure, the Pres-
ident and CEO is entitled to receive additional severance compensa-
tion corresponding to 18 months’ xed salary.
Preparation and decision-making procedure
The Compensation & Sustainability Committee shall, each year, pre-
pare remuneration issues and submit to the Board of Directors recom-
mendations for principles for structuring the Group’s compensation
system and executive management remuneration. Therecommenda-
tions shall include proposals for structuring bonus systems, the break-
down between xed and variable remuneration as well as the size of
any salary increases. The Compensation & Sustainability Committee
shall also propose criteria for assessment of performance by executive
management. Decisions regarding remuneration are adopted by the
Board of Directors as a whole. The Board of Directors shall prepare
proposals for new guidelines at least every fourth year and shall pres-
ent the proposals for a decision by the annual general meeting.
The Compensation & Sustainability Committee shall comprise
ofatleast three independent directors, one of whom shall serve as
chairman. The President and CEO shall attend the meetings of the
committee. The elected chairman of the Compensation & Sustain-
ability Committee shall convene its meetings. The members of the
Compensation & Sustainability Committee are independent in rela-
tion to Elekta AB and the executive management. The President and
CEO, and other members of executive management, may not be
present at meetings at which remuneration issues are addressed and
decided upon, insofar as they are aected by the issues. In conjunc-
tion with all decisions, it is ensured that conicts of interest are
avoided and that any potential conicts of interest are addressed
inaccordance with Elekta’s corporate governance framework,
comprising of a code of conduct, policies and guidelines.
Derogation from the guidelines
The Board of Directors may decide to derogate temporarily from the
guidelines, wholly or in part, where there are particular reasons for
doing so in an individual case and provided such derogation is neces-
sary to satisfy Elekta’s long-term interests, including its sustainability,
or to ensure Elekta’s nancial viability. As stated above, the duties of
the Compensation & Sustainability Committee include preparing
decisions by the Board of Directors on remuneration issues, which
includes decisions regarding derogations from the guidelines.
Description of signicant changes to the guidelines
The content of the guidelines has been reviewed and adapted to
thelegal requirements imposed by Directive (EU) 2017/828 of the
European Parliament and of the Council amending Directive
2007/36/ EC as regards encouragement of the long-term share-
holderengagement.
Previously decided remuneration
that is not yet due for payment
Elekta has ongoing share-related programs that have not yet fallen
due for payment. More information about current share programs
isavailable in Note 7 of the annual report and on Elekta’s website.
BOARD OF DIRECTORS’ REPORT FINANCIAL REPORTING
103
ELEKTA ANNUAL REPORT 2021/22
SEK M Note 2021/22 2020/21
Net sales 6 14,548 1 3, 76 3
Cost of products sold –9 , 111 –8,153
Gross income 5,436 5,610
Selling expenses –1,355 –1,143
Administrative expenses –1,17 3 –1,086
R&D expenses –1,372 –1,486
Other operating income and expenses –48 –85
Exchange rate dierences 155 97
Operating income 5–10 1,643 1,906
Income from participations in associated companies 12 5 –7
Financial income 12 42 30
Financial expenses 12 –159 –253
Interest expenses lease liabilities 12 –41 –41
Exchange rate dierences 12 12 –5
Income after nancial items 1,501 1,630
Income tax 14 –345 –37 7
Net income 1, 157 1, 253
Net income attributable to:
Parent Company shareholders 1,154 1,254
Non-controlling interests 3 –1
Earnings per share:
Before dilution, SEK 15 3.0 2 3. 28
After dilution, SEK 15 3.0 2 3. 28
Average number of shares:
Before dilution, thousands 15 382,083 382,08 3
After dilution, thousands 15 382,083 382,08 3
Consolidated income statement
Consolidated statement of
comprehensive income
SEK M Note 2021/22 2020/21
Net income 1, 157 1, 253
Other comprehensive income
Items that will not be reclassied to the income statement:
Remeasurements of dened benet pension plans 28 27 –3
Change in fair value of equity instruments 21 –45 206
Tax 14 2 –43
Total items that will not be reclassied to the income statement, net of tax –16 160
Items that subsequently may be reclassied to the income statement:
Revaluation of cash ow hedges 3 –448 231
Translation dierences from foreign operations 758 –838
Tax 14 92 –48
Total items that subsequently may be reclassied to the income statement, net of tax 402 –654
Other comprehensive income, net of tax 386 –494
Total comprehensive income 1,543 759
Comprehensive income attributable to:
Parent Company shareholders 1,540 760
Non-controlling interests 3 –1
FINANCIAL REPORTING GROUP
ELEKTA ANNUAL REPORT 2021/22
104
Comments on the consolidated
income statement
Net sales
Net sales increased 6 percent to SEK 14,548 M (13,763),
corresponding to 4 percent increase based on constant exchange
rates.
Net sales,
SEK M
Change,
%
1)
Operating
income, SEKM
Q1 3,009 8% 201
Q2 3,697 7% 533
Q3 3,602 –3% 340
Q4 4,239 5% 570
Full-year 2021/22 14,548 4% 1,643
1)
Compared to last scal year based on constant exchange rates.
Earnings
Gross margin was 37.4 percent (40.8). The decrease in gross mar-
gin compared to previous year was explained by higher logistics
and supply chain costs and higher costs to serve the installed
base. EBITDA amounted to SEK 2,682 M (3,110).
Operating income decreased by 14 percent and amounted
toSEK 1,643 M (1,906). The operating income decreased due to
lower gross margin and increased operating expenses. Selling
expenses increased 17% driven by more travelling and marketing
activities with more the physical exhibitions compared toprevious
year as well as provision related to war in Ukraine. Administration
costs increased 5% driven by more investments in digitalization
and one-o project related costs.
Research and development costs decreased by 8 percent
toSEK –1,372 M (–1,486) equal to 9 percent (11) of net sales.
Capitalization of development costs and amortization of capi-
talized development costs amounted to net SEK 673 M (–9),
ofwhich SEK 675 M (–2) relates to the R&D function. Projects
incapitalization phases increased in line with accelerated
investments in innovations and amortizations decreased due
tolower amortization from Unity. Capitalization within the
R&Dfunction amounted to 1,157 M (676) and amortization to
SEK –482 M (–678).
Operating income included a positive eect from changes
inexchange rates compared to last year and was positively
impacted by a reversed additional purchase price of SEK 48 M.
The contribution to Elekta Foundation, as decided by AGM 2021,
amounted to SEK 35 M. Operating margin was 11.3 percent (13.9).
The change in unrealized exchange rate eects from eective
cash ow hedges amounted to SEK –448 M (231) and is reported
in other comprehensive income. According to Elekta’s currency
hedging policy, anticipated sales in foreign currency may be
hedged up to 24 months.
Net nancial items amounted to SEK–142 M (–277). Interest
expenses was lower due to lower level of gross debt and as
theaverage interest rate expenses on the debt was lower.
Income after nancial items amounted to SEK 1,501 M (1,630).
Tax expense amounted to SEK –345 M (–377) or 23 percent (23).
Net income amounted to SEK 1,157 M (1,253).
Result overview
SEK M 2021/22 2020/21
Operating income (EBIT) 1,643 1,906
Amortization of intangible assets:
Capitalized development costs 493 685
Assets relating business combinations 123 118
EBITA 2,259 2,709
Depreciation 422 401
EBITDA 2,682 3,110
GROUP FINANCIAL REPORTING
105
ELEKTA ANNUAL REPORT 2021/22
SEK M Note April 30, 2022 April 30, 2021
ASSETS
Non-current assets
Intangible assets 16 10, 262 8, 779
Right-of-use assets 17 975 953
Tangible assets 18 954 897
Shares in associated companies 20 25 27
Other nancial assets 3, 21 590 506
Deferred tax assets 14 616 436
Total non-current assets 13,423 11,597
Current assets
Inventories 22 2,533 2 , 283
Accounts receivable 23 3,647 3, 28 1
Accrued income 29 1,796 1, 772
Current tax receivables 14 219 165
Derivative nancial instruments 3 127 220
Other current receivables 24 1,481 1,116
Cash and cash equivalents 25 3, 077 4,411
Total current assets 12,880 13,247
Total assets 26, 303 2 4,844
EQUITY AND LIABILITIES
Equity
Parent Company shareholders:
Share capital 26 192 192
Contributed funds 812 812
Reserves 1,025 623
Retained earnings 6,883 6,568
Parent Company shareholders, total 8,913 8,197
Non-controlling interests 3 0
Total equity 8,916 8,197
Non-current liabilities
Interest-bearing liabilities 27 4,099 3, 04 3
Deferred tax liabilities 14 5 49 515
Lease liabilities 27 841 854
Provisions 28 215 2 24
Other liabilities 3 120 71
Total non-current liabilities 5,824 4,707
Current liabilities
Interest-bearing liabilities 27 510 2,141
Lease liabilities 27 245 200
Accounts payable 2, 3 1,35 2 1,016
Advances from customers 29 4,161 3, 7 59
Prepaid income 29 2,342 2,082
Accrued expenses 30 1,901 1,83 7
Current tax liabilities 14 114 1 37
Provisions 28 149 1 74
Derivative nancial instruments 3 361 35
Other current liabilities 31 429 559
Total current liabilities 11,564 1 1 ,941
Total equity and liabilities 26, 303 2 4,844
For information about assets pledged and contingent liabilities see
Note 32 and 33 respectively.
Consolidated balance sheet
FINANCIAL REPORTING GROUP
ELEKTA ANNUAL REPORT 2021/22
106
Comments on the consolidated
balance sheet
The Group’s consolidated balance sheet has been aected by
changes in exchange rates. The balance sheets of the foreign sub-
sidiaries are translated at the closing rate as per the closing date.
The exchange rates used for translation as per April 30, 2022
and April 30, 2021 respectively are presented in the table on
page 115.
Assets and capital employed
The Group’s total assets increased by SEK 1,459 M to SEK 26,303M
(24,844). Fixed assets totaled SEK 11,216 M (9,676) of which good-
will amounted to SEK 6,499 M (5,973). Right-of-use assets
amounted to SEK 975 M (953).
Current assets, excluding cash and cash equivalents and short-
term investments, increased by SEK 966 M to SEK 9,803M (8,837).
Accounts receivable, accrued income and inventories increased
by 9 percent (–4). Inventory value in relation to net sales was 17
percent (17).
Cash and cash equivalents and short-term investments
decreased by SEK 1,334 M to SEK 3,077 M (4,411) at year-end,
totaling 12 percent (18) of total assets. Of total bank balances
SEK 8 M (8) were pledged primarily for commercial guarantees.
The Group’s capital employed increased to SEK 14,610 M
(14,435).
Liabilities and shareholders’ equity
Interest-free liabilities and provisions increased by SEK 1,283 M to
SEK 11,693 M (10,409). Interest-bearing liabilities amounted to SEK
5,695 M (6,239), of which SEK 1,086 M (1,054) pertained to lease
liabilities. Net debt amounted to SEK 1,532 M (774). Total equity
was SEK 8,916 M (8,197). Return on shareholders’ equity amounted
to 14 percent (16) and return on capital employed amounted to 12
percent (12). Net debt/EBITDA ratio was 0.57 (0.25) and equity/
assets ratio was 34 percent (33).
Working capital
Elekta’s operations is to a large extent project based. Payment
ows from projects generally occur in connection with order
receipt, delivery and acceptance, which generates uctuations in
working capital. Thus, movements in working capital depend on
the progress of projects and the timing of certain events in rela-
tion to terms in the contract. Invoicing and payments from the
customer occur in accordance with the terms of the contract
while revenue is recognized based on accounting principles.
Therefore cash ow from projects does not always coincide with
the recognition of revenue and may result in either anasset
(accrued income) or a liability (advances from customers).
Elekta’s payment terms varies signicantly between
regionsand specic customers. For example, in China, themajor-
ity of Elekta’s customers are in the public sector. Financing and
payments are normally structured by a bank through a letter of
credit arrangement. When Elekta has metcertain performance
conditions, payments are obtained from the issuing bank. The
majority of the proceeds are normally due at shipment. As
another example, the US is largely aprivate hospital market with
replacement investments. Theoperating cycle in the projects are
typically shorter than Elekta’s average. In a typical customer rela-
tionship, Elekta receives partial payments at order receipt, deliv-
ery, installation and acceptance. Lastly, customers in Europe are
typically public hospitals and contracts are awarded through
public procurement processes. In such cases, terms and condi-
tions are often pre-dened by the customer. This means that
Elekta get paid late in the operating cycle and payment times are
generally longer than normal. There are many examples of proj-
ects where customers pay after acceptance of installation.
Accounts receivable amounted to SEK 3,647 M (3,281) as per
April 30, showing an increase of 11 percent in SEK. The majority of
non-due accounts receivable are normally due within 90days.
In a limited number of customer projects, Elekta is providing
nancing through extended payment terms. Such receivables
amounted to SEK 397 M (372) as per April 30 and are included in
“Other nancial assets” in the balance sheet and specied as
“Contractual receivables” in
Note 21.
Customer advances represent projects for which invoiced
amounts exceed revenue recognized. Advances from customers
amounted to SEK 4,161 M (3,759) as per April 30, an increase of SEK
402 M.
Working capital
SEK M April 30, 2022 April 30, 2021
Working capital assets
Inventories 2,533 2,283
Accounts receivable 3,647 3,281
Accrued income 1,796 1,772
Other operating receivables 1,459 1,116
Sum working capital assets 9,435 8,451
Working capital liabilities
Accounts payable 1,352 1,016
Advances from customers 4,161 3,759
Prepaid income 2,342 2,082
Accrued expenses 1,901 1,837
Short-term provisions 149 174
Other current liabilities 429 559
Sum working capital liabilities 10,333 9,428
Net working capital –898 –977
Percent of net sales –6% –7%
Net working capital amounted to SEK –898 M (–977) at year-end,
corresponding to –6 percent (–7) of net sales.
GROUP FINANCIAL REPORTING
107
ELEKTA ANNUAL REPORT 2021/22
SEK M Note
Share
capital
Other
contributed
capital
Tran slation
reserve
Hedge
reserve
Retained
earnings
Elekta AB:s
owners,
total
Non-
controlling
interests
Total
equity
Opening balance May 1, 2020 192 812 1,307 –29 5,830 8, 113 1 8,113
Net income – – – – 1,254 1,254 –1 1,253
Remeasurements of dened benet
pensions plans – – – – –3 –3 – –3
Change in fair value of equity instruments – – – – 206 206 – 206
Revaluation of cash ow hedges
1)
– – – 231 – 231 – 231
Translation dierences from foreign
operations – – –838 – – –838 0 –8 38
Tax relating to components of other
comprehensive income 14 – – – –48 –43 –90 – –90
Other comprehensive income – – –838 184 160 –494 0 –494
Total comprehensive income – – –8 38 184 1,414 76 0 –1 7 59
Dividend – – – – –688 –688 – –688
Incentive programs – – – – 12 12 – 12
Transactions with the shareholders, total – – – – –676 –6 76 – –6 76
Closing balance April 30, 2021 192 812 469 154 6,568 8, 197 0 8, 197
Opening balance May 1, 2021 192 812 469 154 6,568 8, 197 0 8, 197
Net income – – – – 1, 154 1,154 3 1,157
Remeasurements of dened benet
pensions plans – – – – 27 27 – 27
Change in fair value of equity instruments – – – – –45 –45 – –45
Revaluation of cash ow hedges
1)
– – – –448 – –448 – –448
Translation dierences from foreign
operations – – 758 – – 758 0 758
Tax relating to components of other
comprehensive income 14 – – – 92 2 94 – 94
Other comprehensive income – – 758 –355 –16 386 0 386
Total comprehensive income – – 75 8 –355 1,13 7 1,540 3 1,543
Dividend – – – – –841 –841 – –841
Incentive programs – – – – 17 17 – 17
Transactions with the shareholders, total – – – – –823 –823 – –82 3
Closing balance April 30, 2022 192 812 1,227 –201 6,883 8,913 3 8,916
1)
Of which transferred to the income statement in 2021/22: SEK 9 4 M (164 ).
Changes in consolidated equity
FINANCIAL REPORTING GROUP
ELEKTA ANNUAL REPORT 2021/22
108
In 2021/22 Elekta paid a total dividend of SEK 841 M. The dividend
payment has aected equity through a reduction of retained
earnings.
The total number of shares in Elekta as of April 30, 2022,
amounted to 383,568,409 of which 14,980,769 A-shares and
368,587,640 B-shares. See
Note 26 for more information
onshare capital.
Total equity includes equity of foreign subsidiaries. Translation is
performed at closing rate and the translation dierence is
reported in the translation reserve via other comprehensive
income. The translation dierence amounted to SEK 758 M (–838)
in 2021/22. Shareholders’ equity in foreign currency is hedged
when it is deemed appropriate in individual cases. The translation
reserve includes all exchange rate dierences arising in conjunc-
tion with the translation of foreign operations that have prepared
their nancial reports in a currency other than that used in the
group’s nancial reports. In addition, thetranslation reserve con-
sists of exchange rate dierences arising from the translation of
liabilities raised as a hedging instrument for a net investment in
foreign operations. The translation reserve amounted to SEK 1,227
M (469) at year end.
Cash ow hedges are reported in the hedge reserve via other
comprehensive income. Elekta hedges its currency risk in line
with the policy established by the board. The scope of this hedg-
ing is determined by the Company’s currency risk assessment.
Currency hedging is dened on the basis of the expected sales in
foreign currency over up to 24 months. Hedging is done to
reduce the eects of short-term uctuations on the currency
markets. The hedge reserve includes the eective portion of the
accumulated net change in the fair value of cash ow hedging
instruments attributable to hedging transactions that have not
yet occurred. During 2021/22 the change in the hedge reserve
was SEK –355 M (184) after tax and the closing balance of the
hedge reserve was SEK –201 M (154).
Comments on changes in
consolidated equity
Changes in consolidated equity
–2,000
–1,000
0
1,000
2,000
2021/222020/212019/202018/192017/18
SEK M
Prot for the year
Cash ow hedges
Incentive programs
Remeasurements of dened benet pension plans
Net gain/(loss) on equity instruments designated at fair value
Translation dierences
Dividends
Consolidated equity and return
Average shareholder’s equity, SEK M
Return on shareholder’s equity, percent
SEK M
0
2,000
4,000
6,000
8,000
10,000
2022-
04-30
2021-
04-30
2020-
04-30
2019-
04-30
2018-
04-30
%
0
10
20
30
40
50
GROUP FINANCIAL REPORTING
109
ELEKTA ANNUAL REPORT 2021/22
SEK M Note 2021/22 2020/21
Operating activities
Income after nancial items 1,501 1,630
Non-cash items:
Depreciation and amortization 8, 16, 17, 18 1,03 9 1,204
Interest net 34 106 204
Other non-cash items 34 –211 3 07
Operating cash ow before interest and tax 2,435 3,345
Interest received 42 30
Interest paid –156 –2 49
Income taxes paid 14 –452 –465
Operating cash ow 1,869 2,660
Change in inventories –97 270
Change in operating receivables –291 –7 72
Change in operating liabilities 376 393
Change in working capital –12 –109
Cash ow from operating activities 1,858 2,55 1
Investing activities
Investments in intangible assets 16 –1, 220 –678
Investments in tangible assets 18 –188 –167
Sale of xed assets 0 0
Continuous investments –1,408 –845
Cash ow after continuous investments 450 1, 706
Business combinations 34,36 –175 –272
Short-term investments 34 –69 60
Divestment in other shares 34 – 443
Dividends associated companies 20 4 1
Cash ow from investing activities –1,649 –613
Cash ow after investments 209 1 ,938
Financing activities
Borrowings 34 1,505 0
Repayment of lease liabilities 34 –228 –215
Repayment of debt 34 –2,16 3 –2,703
Dividend –841 –688
Cash ow from nancing activities –1, 726 –3,605
Cash ow for the year –1,517 –1,667
Change in cash and cash equivalents during the year
Cash and cash equivalents at the beginning of the year 4, 41 1 6,407
Cash ow for the year –1,517 –1,667
Exchange rate dierences 183 –329
Cash and cash equivalents at the end of the year 25 3,077 4,41 1
Consolidated cash ow statement
FINANCIAL REPORTING GROUP
ELEKTA ANNUAL REPORT 2021/22
110
Comments on the consolidated
cash ow statement
The cash ow statement describes the ability of the operations to
generate cash and cash equivalents. Elekta’s cash ow is used pri-
marily to nance market growth, strategic research projects and
investments. Based on the income statement and balance sheet
translated at the average exchange rate, the statement shows
the Group’s net ows during the year.
Elekta’s project-based operations aect cash ow through
movements in working capital. Payment ows from projects
generally occur in connection with order receipt, delivery, and
acceptance – mostly not coinciding with revenue recognition –
thus generating uctuations in working capital levels. See also
comments on working capital on
page 107.
The operating cash ow (cash ow from operating activities
exclusive of change in working capital) amounted to SEK 1,869 M
(2,660), a decrease of SEK 791 M compared with the previous
year.
Cash ow from operating activities decreased to SEK 1,858 M
(2,551).
Cash ow from investing activities amounted to SEK –1,649 M
(–613) including investments in intangible assets of SEK –1,220 M
(– 678).
Cash ow after continuous investments decreased by
SEK 1,256 M to SEK 450 M (1,706). The decrease in cash ow
wasdue to decreased cash ow from operating activities.
Cash ow after investments amounted to SEK 209 M (1,938),
including payments relating to business combinations of
SEK –175 M (–272).
Cash ow from nancing activities amounted to SEK –1,726 M
(–3,605).
Specication of cash ow after
continuous investments
–2,000
0
1,000
2,000
Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
SEK M
Investments/Divestments
Change in working capital
Operating cashow
2019/20 2020/21 2021/22
Cash ow from operating
activities
–1,000
0
1,000
2,000
3,000
Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
SEK M
Per quarter
Rolling 12 months
2019/20 2020/21 2021/22
GROUP FINANCIAL REPORTING
111
ELEKTA ANNUAL REPORT 2021/22
Income statement – Parent Company
SEK M Note 2021/22 2020/21
Administrative expenses –38 –27
Other operating income and expenses 48 –
Operating income 10 –27
Income from participations
in Group companies 11 1,121 327
Interest income and similar items 13 138 154
Interest expenses and similar items 13 –125 –217
Result from participation
in other companies –43 208
Exchange rate dierences 11 –4
Income after nancial items 1,112 441
Income tax 14 6 –14
Net income 1,118 427
Statement of comprehensive income
– Parent Company
SEK M 2021/22 2020/21
Net income 1 ,118 427
Other comprehensive income
Other comprehensive income, net of tax – –
Total comprehensive income 1 ,118 427
Financial statements – Parent Company
Balance sheet – Parent Company
SEK M Note April 30, 2022 April 30, 2021
ASSETS
Non-current assets
Intangible assets 16 39 46
Shares in subsidiaries 19 2,752 2,590
Shares in associated
companies 20 6 13
Receivables from
subsidiaries 2,160 2,194
Other nancial assets 21 38 81
Deferred tax assets 14 44 27
Total non-current assets 5,039 4,951
Current assets
Receivables from
subsidiaries 2,599 2,895
Other current receivables 24 42 39
Cash and cash equivalents 25 1,863 3,421
Total current assets 4,504 6,355
Total assets 9,543 11,306
EQUITY AND LIABILITIES
Equity
Share capital 26 192 192
Statutory reserve 156 156
Restricted equity 348 348
Premium reserve 657 657
Retained earnings 1,363 1,082
Unrestricted equity 2,020 1,739
Total equity 2,368 2,087
Provisions 28 13 36
Interest-bearing liabilities 27 4,099 3,043
Total non-current liabilities 4,112 3,079
Current liabilities
Interest-bearing liabilities 27 500 2,141
Liabilities to subsidiaries 27 2,482 3,858
Provisions 28 – 4
Other current liabilities 31 81 137
Total current liabilities 3,063 6,140
Total equity and liabilities 9,543 11,306
FINANCIAL REPORTING PARENT COMPANY
ELEKTA ANNUAL REPORT 2021/22
112
Cash ow statement – Parent Company
SEK M Note 2021/22 2020/21
Operating activities
Income after nancial items 1,112 441
Interest net 34 –24 37
Other non-cash items 34 –2 –135
Interest received 138 154
Interest paid –114 –191
Income taxes paid 14 –11 –
Operating cash ow 1,099 306
Change in operating receivables –655 1,119
Change in operating liabilities –1,433 –391
Change in working capital –2,088 728
Cash ow from operating activities –989 1,034
Investing activities
Business combinations 34 – –235
Shareholders’ contributions paid 34 –155 –55
Divestments of other shares 34 – 443
Change in long-term receivables 1,154 197
Cash ow from investing activities 999 350
Cash ow after investments 10 1,384
Financing activities
Borrowings 1,401 –
Repayment of debt –2,067 –2,701
Dividend –841 –688
Cash ow from nancing activities –1,507 –3,389
Cash ow for the year –1,497 –2,005
Change in cash and cash equivalents during the year
Cash and cash equivalents at the beginning of the year 3,421 5,387
Cash ow for the year –1,497 –2,005
Exchange rate dierences –61 39
Cash and cash equivalents at the end of the year 25 1,863 3,421
Changes in equity – Parent Company
Restricted equity Unrestricted equity
SEK M Share capital
Statutory
reserve Premium reserve
Retained
earnings
Total
equity
Opening balance May 1, 2020 192 156 657 1,341 2,346
Net income – – – 427 427
Other comprehensive income – – – – –
Total comprehensive income – – – 427 427
Dividend – – – –688 –688
Incentive programs – – – 2 2
Transactions with the shareholders, total – – – –686 –686
Closing balance April 30, 2021 192 156 657 1,082 2,087
Opening balance May 1, 2021 192 156 657 1,082 2,087
Net income – – – 1,118 1,118
Other comprehensive income – – – – –
Total comprehensive income – – – 1,118 1,118
Dividend – – – –841 –841
Incentive programs – – – 4 4
Transactions with the shareholders, total – – – –837 –837
Closing balance April 30, 2022 192 156 657 1,363 2,368
PARENT COMPANY FINANCIAL REPORTING
113
ELEKTA ANNUAL REPORT 2021/22
Note 1
Signicant accounting principles
a public limited company and its shares are listed on Nasdaq
Group and is headquarted in Stockholm, Sweden . The address
to the head oce is Elekta AB, Kungstensgatan 18, Box 7593,
This annual report, including the consolidated nancial state-
ments, was signed and approved for publication by the Board of
Directors of Elekta AB on July 7, 2022. The statements of income
and the balance sheets, for the Parent Company and the Group,
included in the annual report and the consolidated nancial
statements, are subject to adoption by the annual general meet-
ing on August 25, 2022.
The most important accounting principles applied in the prepa-
ration of the nancial reports are set out below and, where appli-
cable, in the following notes. Mainly, the same principles are
applied for the Parent Company and the Group. The Parent Com-
pany’s accounting principles deviating from those applied by the
Group, or con sidered important to describe, are stated under a
separate heading at the end of this note.
Basis for preparation
Elekta’s consolidated nancial statements have been prepared
in accordance with International Financial Reporting Stan-
dards (IFRS) as endorsed by the European Union (EU) on April
30, 2022, the Swedish Annual Accounts Act and standard RFR 1
of the Swedish Financial Reporting Board. The Parent Company’s
nancial reports have been prepared in accordance with the
Swedish Annual Accounts Act and standard RFR 2 of the
Swedish Financial Reporting Board.
Measurement basis
Assets and liabilities are recognized at historical cost apart
from nancial assets and liabilities that are short-term invest-
ments, derivatives and contingent considerations, which are
recognized at fair value.
New and revised IFRS applied from May 1, 2021
There are no new or revised standards and interpretations
adopted as of May 1, 2021 that have had a material impact
onthe Elekta Group’s nancial statements.
Consolidated accounts
The consolidated accounts include Elekta AB (the Parent
Company) and its subsidiaries. Subsidiaries are all companies
in which the Group has a controlling interest. The Group has
a controlling interest in a company when it has exposure, or
right, to variable returns from its holding in the company and
has the ability to use its power over the company to aect the
returns. A subsidiary is included in the con solidated accounts
from the point in time when the controlling interest is obtained
until the point in time when the controlling interest ceases.
Intra-group transactions, balance sheet items and unrealized
intra-group prots are eliminated in the consolidated
accounts.
The acquisition method
The consolidated accounts have been prepared in accordance
with the acquisition method, which means that the cost of
shares in subsidiaries is eliminated against their equity at the
time of acquisition. Acquisition related transaction costs are
not included in the cost of the shares but expensed as incurred.
The equity in a subsidiary is determined on the basis of the fair
value of assets, liabilities and contingent liabilities at the
acquisition date. Thus, only the part of the subsidiary’s equity
which has arisen after the acquisition date is included in the
consolidated accounts. In business combinations, where the
sum of (i) the cost of shares in subsidiaries, (ii) the value of
non-controlling interest and (iii) the fair value of previously
held equity interest, exceeds the fair value of the Group’s share
of acquired identiable net assets at acquisition, the dierence
is reported as goodwill.
If the initial accounting for a business combination is incom-
plete by the end of the reporting period in which the combination
occurs, provisional amounts are reported for the items for which
the accounting is incomplete. Such amounts may be adjusted
during the measurement period, or new assets or liabilities may
be recognized, to reect new information obtained about facts
and circumstances that existed as of the acquisition date and,
ifknown, would have aected the measurement of the amounts
recognized as of that date.
Non-controlling interests
In connection with acquisitions of less than 100 percent, when
acontrolling inuence is achieved, non-controlling interests
aredetermined either as a proportional share of the fair value
ofidentiable net assets excluding goodwill or at fair value.
Non-controlling interests are recognized as a separate item in
the Group’s equity. The Group’s income statement and every
component ofother comprehensive income are attributable
tothe shareholders of the Parent Company and to non-
controlling interests. Losses attributable to non- controlling
interests are recognized even if this results in a negative balance.
Subsequent acquisitions up to 100 percent and divestments of
participations in a subsidiary that do not lead to a loss of con-
trolling inuence are recognized as equity transactions.
Translation of foreign subsidiaries
The Group companies prepare their nancial statements in
their functional currency, i.e. the currency used in the primary
economic environment in which they mainly operate. These
reports provide the basis for the con solidated accounts which
are prepared in Swedish kronor (SEK), which is the functional
currency of the Parent Company and the presentation cur-
rency. Unless otherwise stated, the amounts presented are
Notes
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
114
inmillions Swedish krona and, accordingly, rounding dier-
ences can occur. The income statements and balance sheets
of foreign subsidiaries have been translated, from their respec-
tive functional currency, to the presentation currency of the
Group. All items in the income statements have been trans-
lated at the average rate for the reporting period, while assets
and liabilities in the balance sheets have been translated at
theclosing rate. Translation dierences are reported in other
comprehensive income.
Certain long-term nancing related to subsidiaries, where
a settlement is not considered to take place in the foreseeable
future, is considered as an increase in the Parent Company’s net
investment in the subsidiaries. Taking the tax eect into consider-
ation, exchange gains and losses are reported in other compre-
hensive income.
Income statement
Elekta presents its income statement classied by function
where the operating expenses are allocated to cost of products
sold, selling expenses, administrative expenses and R&D ex -
penses. Exchange rate dierences are reported on separate
lines within the operating income. These have been identied as
important to distinguish from operating income and expenses
directly related to functions in order to ease comparability
overtime.
Government grants
Government grants relate to nancial grants from governments,
public authorities and similar local, national, or international
bodies. These are recognized when there is a reasonable assur-
ance that the grants will be received and that Elekta will comply
with the conditions attached to them. Government grants relat-
ing to expenses are recognized in the income statement as a
deduction of such related expenses. Government grants relating
to assets are included in the balance sheet as prepaid income
and recognized as income over the useful life of the assets.
Transactions and balances
in foreign currency
Transactions in foreign currency are translated to the respec-
tive Group Company’s functional currency by use of the cur-
rency rate prevailing on the transaction date. Monetary receiv-
ables and liabilities in foreign currency are similarly translated
by use of the closing day rate. Exchange rate dierences aris-
ing upon translation, and upon payment of the transaction,
are reported in the income statement with the exception of
those related to qualied hedge transactions, related to cash
ows or net investments, which are recognized in equity under
other comprehensive income. Exchange rate gains and losses
on operating balance sheet items are recognized in the operat-
ing income. Exchange rate gains and losses on loans and
investments are recognized as nancial items. Non-monetary
assets and liabilities carried at historical cost are translated at
the exchange rate prevailing on the transaction date.
Cash ow statement
The cash ow statement is prepared according to the indirect
method.
Exchange rates
Average rate Closing rate
Country Currency 2021/22 2020/21
April 30,
2022
April 30,
2021
Australia AUD 6.554 6.388 7.031 6.517
Canada CAD 7.093 6.692 7.712 6.825
China CNY 1.389 1.302 1.483 1.295
Euroland EUR 10.250 10.293 10.349 10.151
United Kingdom GBP 12.089 11.549 12.294 11.682
Hong Kong HKD 1.143 1.130 1.254 1.079
Japan JPY 0.078 0.083 0.075 0.077
USA USD 8.902 8.764 9.839 8.377
The Parent Company
The Group’s Parent Company, Elekta AB, carries out group
management andprovides joint group functions and nancial
management. The Parent Company’s revenues consist mainly
of dividends from subsidiaries. The most material balance
sheet items are shares in subsidiaries, intra-group balances
and external loans.
The Parent Company’s annual accounts have been prepared in
accordance with the Swedish Annual Accounts Act (1995:1554)
and standard RFR2 of the Swedish Financial Reporting Board.
RFR 2 requires the Parent Company, in its annual accounts, to
apply all the International Financial Reporting Standards (IFRS)
as endorsed by the EU in so far as this is possible within the
framework of the Annual Accounts Act and with regard to the
relationship between accounting and taxation. RFR 2 states
what exceptions from, and additions to, IFRS should be made.
Revenues
The Parent Company’s revenues consist mainly of dividends
from sub sidiaries. Dividends are recognized when the right
to receive payment is judged to be rm.
Shares in subsidiaries and shares in associates
Shares in subsidiaries and shares in associates are accounted for
at cost less any accumulated impairment losses. Acquisition-
related transaction costs are included in the cost of the shares.
The recoverable amount of shares in subsidiaries or shares in
associates is calculated whenever there is an indication of a
reduction in value. Impairment is performed if the recoverable
amount is lower than the carrying value. Impairment losses are
recognized in the nancial net in the income statement.
NOTE 1 Essential accounting principles, cont.
NOTES FINANCIAL REPORTING
115
ELEKTA ANNUAL REPORT 2021/22
Financial instruments
Derivative nancial instruments and short-term investments
are accounted for at fair value. Changes in the fair values of
derivative nancial instruments are reported in the income
statement with the exception of exchange dierences related
to a monetary item that forms part of a net investment in a
foreign subsidiary. Such value changes are recognized in equity
under other comprehensive income. Contingent consider-
ations are reported as provisions in the Parent Company.
Group contributions
Group contributions are reported in accordance with RFR 2.
Group contributions received and given are recognized as
income from participations in Group companies and increase
of shares in subsidiaries respectively. The tax eect of group
contributions is recognized in the income statement in accor-
dance with IAS 12.
Note 2
Financial risk management
Accounting principles
See
Note 3 for accounting principles relating to nancial
instruments.
Financial risk factors
As a result of its operations, the Elekta Group is exposed to a
number of nancial risks: market risk, credit risk and liquidity risk.
The Group’s over riding risk management policy focuses on the
unpredictability of nancial markets and seeks to reduce any
potentially unfavorable eects on the Group’s nancial results.
Risk management is conducted by the Group’s nance
department, which identies, evaluates and hedges nancial
risks. Work is pursued in line with the policies established by
theboard for over arching risk management and for specic
areas such as currency risk, interest-rate risk, credit risk, utiliza-
tion of derivative instruments and nancial instruments that
are not derivatives, and the investment of surplus liquidity.
Market risk
Market risk encompasses currency risk, interest-rate risk
andprice risk. The Group’s exposure to and management of
currency risk and interest-rate risk are described below. The
Group’s exposure to price risk is limited and is not described
in particular.
Currency risk
Because of its international operations, the Group is exposed
to currency risks in the form of transaction exposure and trans-
lation exposure. Trans action exposure arises as a result of
future business transactions and translation exposure emerges
as a result of recognized assets and liabilities in foreign cur-
rency as well as net investments in foreign operations. The
Group’s currency risk mainly arises from currency exposures in
US dollars (USD), Euro (EUR), British Pounds (GBP), Japanese
Yen (JPY) and Chinese Yuan (CNY).
The Group’s net revenue arises primarily in USD, EUR and JPY,
while the Group’s net expenses largely arise in GBP, EUR and USD.
Sales companies primarily have income and expenses in their
functional currency while production companies are to a greater
extent exposed to currency risk as sales are largely in a currency
other than the functional currency. The currency risk that arises
from future business transactions and recognized assets and lia-
bilities are managed using derivative contracts based on fore-
casted net ows and recognized net balances. Elekta’s policy is to
hedge the exchange-rate risk using forwards, the extent of which
is determined by the Group’s estimation of the exchange-rate risk
and in accordance with the Group’s established policy. Highly
forecasted transaction exposure hedging is on the basis of
expected net sales and hedging is conducted over a period up to
24 months. Each Group company is responsible for quantifying its
transaction exposure in particular ow forecasts that then pro-
vide the basis for determination of the exposure and decisions on
hedging measures. Currency hedging of recognized
assets and liabilities in foreign currency is hedged, in accordance
with policy, from 50 percent to 100percent.
Hedging is carried out in order to reduce the eects of short-
term uctuations in currency markets. The Parent Company’s
direct and indirect holdings in foreign operations entail that net
assets in the foreign operations are exposed to currency risk. Such
net investments in foreign currency are hedged when viewed as
appropriate on an individual basis, currently there are no out-
standing net investment hedges.
Based on the year’s income, expense and currency structure
(transaction exposure) a general change of one percentage point
in the SEK exchange rate against other currencies would aect
Group net prot and shareholders’ equity by approximately +/–
SEK 25 M (23), exclusive of hedging eects.
The table below shows the impact on net income from
a 1 percent weakening of the Swedish krona (SEK) in relation
to the major currencies.
Impact on operating income of
a 1 percent
weakening of SEK, SEK M
Currency April 30, 2022 April 30, 2021
USD 36 32
EUR 6 8
JPY 5 5
GBP –27 –27
CNY –3 –2
Other currencies 8 7
The Group’s net sales and operating expenses by currency for
2021/22 are shown in the following diagram.
NOTE 1 Essential accounting principles, cont.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
116
Net sales and operating expenses
per currency
–4,000
0
4,000
8,000
OtherSEKCNYGBPJPYEURUSD
SEK M
Net sales 2021/22
Operating expenses
2021/22
Net sales 2020/21
Operating expenses
2020/21
Interest-rate risk
Interest-rate risk refers to the risk that changes in the interest
rate level negatively aect Elekta’s earnings.
Elekta’s policy is to reduce the interest-rate risk through the use
of loans, investments and derivatives. Hedging is carried out in
order to reduce impact on result from interest rate movements
and is never to exceed the amount and maturity of the underlying
exposure. The Group’s nance department analyzes exposure to
interest-rate risk, whereby renancing, turnover of existing posi-
tions, alternative nancing and hedging are taken into account.
Based on this, the eect on earnings that a certain change in the
interest rate would have is calculated, in which the total change in
the interest rate is usedfor all currencies.
Elekta usually obtains long-term loans at a variable or xed
interest rate based on current market conditions. Conversion to
xed or variable interest rates is done using interest rate deriva-
tives when this is deemed appropriate from a risk management
and market perspective. An interest rate swap entails that the
Group reaches agreement with another party with the indicated
intervals (such as per quarter) to swap the dierence between
xed and variable interest amount, estimated on the basis of the
contracted nominal amount.
Based on the balance sheet structure at year-end and under
the assumption that all other variables were constant, a gen-
eral change in the interest rate on loans and investments by
one percentage point would aect the Group’s net result and
shareholders’ equity by SEK –4 M (0), excluding hedging eects.
The impact on the result is mainly attributable to lower/higher
interest expense for loans at variable interest rate.
On April 30, 2022, interest-bearing liabilities amounted to SEK
5,695 M (6,239), of which SEK 1,086 M (1,054) pertained to lease
liabilities. The average xed interest term was 1.6 years (1.1) and
the weighted average interest rate, taking interest rate deriva-
tives into account, was 1.5 percent (1.8). See
Note 27 for more information on interest-bearing loans.
Credit risk
Credit risk arises via nancial credit risk related to cash and cash
equivalents, short-term investments, derivative instruments
and balances at banks and nancial institutions as well as
through credit exposure vis-à-vis customers and distributors.
Credit risk is managed primarily at Group level, but, as regards
credit risk in accounts receivable and accrued income, the pri-
mary responsibility lies with the individual Group companies.
Maximum credit risk is deemed to correspond to the carrying
values of the nancial assets recognized in the balance sheet.
Financial credit risk
Elekta’s nance policy includes special counterparty regula-
tions in which the maximum credit exposure and the lowest
credit rating for various counterparts are specied. Elekta’s
liquidity is invested in accordance with the determined policy,
with the goal of maintaining high liquidity combined witha low
credit risk.
The majority of the subsidiary nancing goes through internal
loans from the Parent Company, therefore there is a credit risk
originating from these. The opening balance of expected credit
losses in the Parent Company amounted to SEK 27 M andthe clos-
ing balance of expected credit loss reservation at the
end of nancial year 2021/22 was SEK 21 M.
Credit risk in accounts receivable
Credit risk in accounts receivable, including accrued income,
are managed primarily by the individual group companies. The
credit risk for each new customer is analyzed before the condi-
tions for payment and delivery are oered. A continuous follow
up of the credit risk in receivables outstanding and agreed
transactions are performed. A risk assessment is conducted
continuously of credit worthiness through the observance of
the customer’s nancial position and other inuencing factors
as well as previous experience. No single customer accounts for
10 percent or more of Elekta’s net sales.
A continuous assessment is made of the credit risk in receiv-
ables outstanding and at the end of the nancial year 2021/22 the
provision for bad debts amounted to SEK 98 M. See
Note 23 for an analysis of credit exposure in accounts receiv-
able and provision for bad debts.
Liquidity risk
Liquidity risk pertains to the risk of not being able to cover pay-
ment obligations due to insucient cash and cash equivalents
or diculties in obtaining external nancing. The operating
Group companies draw up cash ow forecasts, which are con-
solidated centrally. At the Group level, rolling forecasts for the
Group’s liquidity reserve are observed in order to ensure that
the Group has sucient cash resources to meet the require-
ments of current operations, while also retaining sucient
scope of unutilized credit facilities.
Excess liquidity in operating Group companies is usually trans-
ferred centrally and is managed by the Group’s nancial function.
Investments are made primarily in interest-bearing accounts,
term-limited borrowing, money market instruments, money mar-
ket funds and tradable securities, depending on which instrument
is viewed as having an appropriate term or sucient liquidity to
meet the particular situation. In order to reduce the liquidity risk,
Elekta endeavors to maintain readily available funds equal to at
least 10 percent of net sales. On April 30, 2022, available cash and
cash equivalents and short-term investments amounted to SEK
3,069 M (4,403), or 21 percent (32) of net sales. In addition, Elekta
had SEK 2,070M (2,030) in unutilized credit facilities.
NOTE 2 Financial risk management, cont.
NOTES FINANCIAL REPORTING
117
ELEKTA ANNUAL REPORT 2021/22
Maturity analysis: nancial liabilities
April 30, 2022 April 30, 2021
SEK M < 1 yr
> 1 yrs
< 3 yrs
> 3 yrs
< 5 yrs > 5 yrs Total < 1 yr
> 1 yrs
< 3 yrs
> 3 yrs
< 5 yrs > 5 yrs Total
Loans (Note 27) 615 1,274 2,921 363 5,172 2,232 597 1,093 1,580 5,502
Lease liabilities (Note 27) 260 331 154 464 1,209 231 346 164 512 1,252
Accounts payable 1,352 – – – 1,352 1,016 – – – 1,016
Derivative nancial instruments
– outow, gross 7,727 2,185 – – 9,912 6,886 1,675 – – 8,561
Derivative nancial instruments
– inow, gross –8,076 –2,131 – – –10,207 –6,721 –1,692 – – –8,413
Other liabilities 429 42 – – 471 559 64 – – 623
Total 2,307 1,701 3,075 827 7,909 4,204 990 1,257 2,092 8,542
NOTE 2 Financial risk management, cont.
Net debt/EBITDA ratio
SEK M Note April 30, 2022 April 30, 2021
Interest-bearing liabilities 27 4,609 5,184
Cash and cash equivalents and short-term investments 25 –3,077 –4,411
Net debt 1,532 774
EBITDA 2,682 3,110
Net debt/EBITDA ratio 0.57 0.25
The net debt/EBITDA ratio was 0.57 compared to 0.25 for prior scal year. See
Note 27 for more information on interest- bearing
liabilities and section Alternative Performance Measures on
page 155 for more information on EBITDA and Net debt.
The table below shows the Group’s liquidity risk through
a maturity analysis regarding nancial liabilities (including
interest payments as applicable) and derivatives recognized
asnancial liabilities. The amounts noted in the table are
contractual, undiscounted cash ows classied on the basis ofthe
term on the balance sheet date that remains to the agreed
maturity date.
Capital management
The primary objective of the Group’s capital management is
tosecure a going concern through maintaining a high credit-
worthiness and a well- balanced capital structure with the aim
of generating return to shareholders and benets for other
stakeholders, and to keep down the costs of capital.
In order to maintain or adjust the capital structure, the Group
can change the dividend paid to shareholders, repay capital to
shareholders, issue new shares or sell assets to reduce debt.
Maturity analysis: loans & lease liabilities
Loans
Lease liabilities
SEK M
0
1,000
2,000
3,000
4,000
>5 yrs>3 yr
>5 yrs
>1 yrs
<3 yrs
<1 yr
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
118
Note 3
Financial instruments
Accounting principles
A nancial asset or a nancial liability is reported in the bal-
ance sheet when the Company becomes party to the contrac-
tual terms and conditions of the instrument. A nancial asset
is removed from the balance sheet when the contractual rights
are realized, fall due, or if the Company transfer substantially
all the risks and rewards of ownership. Spot acquisitions or
sales of nancial assets are reported on the settlement date,
which is the date on which the asset is delivered. Accounts
receivable are reported in the balance sheet when the invoice
is dispatched.
Financial assets are initially recognized at fair value plus trans-
action costs, except for those nancial assets carried at fair value
through the net income. Related transaction costs are expensed
in the income statement.
The fair value of quoted nancial assets corresponds to the
asset’s listed bid price on the closing date. In the absence of such
information, a valuation is carried out using generally accepted
methods such as the discounting of future cash ows at the
quoted market interest rate for the particular maturity.
For short-term loans, the fair value is deemed to comply
with the carrying amount in view of the fact that a change
inmarket rate of interest does not have a material eect on the
market value.
Financial assets and liabilities are o-set and reported at anet
amount in the balance sheet when there is a legal right to net and
when the intention is to settle the items using a net amount or
simultaneously realize the assets and settle the liability.
Subsequent measurement of the nancial asset, after the ini-
tial recognition at fair value, is based on what business model the
Company have for managing the asset and the cash ow char-
acteristics of the asset. For debt instruments there are three mea-
surement categories with the following characteristics.
• Amortized cost; assets held with the intention for collection
of contractual cashows and the cashow represent solely
payments of principal and interest.
• Fair value through other comprehensive income; assets held
with the intention for collection of contractual cashow
and for selling it, and the cashow represent solely pay-
ments of principal and interest.
• Fair value through the net income; all nancial assets that
do not meet the criteria for amortized cost or fair value
through other comprehensive income.
Equity instruments, instrument that evidences a residual inter-
est in the asset of an entity after deduction of all its liabilities,
are measured at fair value through the net income.
The nancial liabilities are classied into following measure-
ment categories:
• fair value through the net income; liabilities held for trading
• amortized costs; liabilities not held for trading
Financial assets measured at amortized cost
Assets are classied in this category when the intention is to
hold the asset for collection of contractual cashows and the
cashow represent solely payments of principal and interest.
In this category assets are measured at amortized cost using
the eective interest method, less any provision for impairment.
Interest income and gains and losses is recognized in
the income statement. The category includes for example
accounts receivables as well as cash and bank.
Accounts receivable
Since the anticipated life of accounts receivable is short,
reporting is based on the amounts expected to be received,
without discounting in accordance with the method for amor-
tized cost. Impairment loss on accounts receivable is recog-
nized in operating income. See
Note 2 and 23 for further
information about credit risk and impairment policies.
Cash and cash equivalent
Cash and cash equivalent comprise cash and bank balances
with nancial institutions and short-term investments with an
original maturity of less than three months. Cash and bank are
reported at amortized cost, while the short-term investments
in money market funds is measured at fair value through the
net income.
Financial assets measured at fair value
through other comprehensive income (FVOCI)
When the intention of the nancial asset is to hold the asset
for collection of contractual cashow and for selling it, and the
cashow represent solely payments of principal and interest,
the asset is classied into this category. The assets are mea-
sured at fair value with changes in fair value recognized in
other comprehensive income (OCI), except for eective inter-
est, impairment gains and losses and foreign exchange gains
and losses which are recognized in the income statement.
When the nancial asset is derecognized, the cumulative gain
or loss in OCI is reclassied to the income statement.
In this category Elekta has classied account receivables that
may be sold. For Elekta it is only in a few countries where account
receivables are subject for factoring.
As the sold account receivables are derecognized close to them
being issued, there are no material dierences between fair value
and amortized cost.
Elekta treat interest in other shares as equity investment desig-
nated as measured at fair value through other comprehensive
income with gains and losses remaining in other comprehensive
income, without recycling to the net income upon derecognition.
NOTES FINANCIAL REPORTING
119
ELEKTA ANNUAL REPORT 2021/22
Financial assets measured at fair value
through prot and loss (FVPL)
All nancial assets that do not meet the criteria for amortized
cost or FVOCI are measured as FVPL. Assets are classied to
this category when the intention is to sell in short term. Deriva-
tives with a positive market value are classied in this category
unless they are used for hedge accounting. Financial deriva-
tives and short-term investments in tradeable securities as well
as money market funds is classied in this category. Assets in
this category are recognized at fair value and changes in value
are recognized in the income statement.
Impairment
Financial assets carried at amortized cost and FVOCI are
assessed for impairment based on expected credit losses. The
expected credit loss allowance is based on historical credit loss
experience, current conditions and forward-looking economic
conditions.
The impairment methodology applied depends on whether
there has been a signicant increase in credit risk. The Company
applies the simplied approach to measuring expected credit
losses on accounts receivables, meaning a use of a lifetime
expected loss allowance. See
Note 23 for more information
about impairment on accounts receivables.
Financial liabilities at fair value through prot or loss
This category includes derivatives with negative fair values
that are not used for hedge accounting, nancial liabilities
held for trading and contingent considerations. Liabilities in
this category are measured at fair value with changes in that
value recognized in the income statement.
Financial liabilities measured at amortized cost
This category includes nancial liabilities that are not held for
trading, for example loans and accounts payable. These are
recognized initially at fair value, net after transaction costs,
and subsequently at amortized cost according to the eective
interest method.
Loan liabilities
Loan liabilities are initially reported at fair value, net of trans-
action costs, and subsequently at amortized cost according
to the eective interest method.
Loan liabilities carrying a xed rate of interest that are reported
under hedge accounting in line with the method
for fair value hedging are valued at market in respect of the
interest component. Changes in market value are o-set
with changes in value of the hedge instrument in net
nancial items.
Hedging of net investments
Loans in foreign currency are reported at closing rate.
Exchange rate dierences for loans in connection with hedg-
ing of net investments in foreign operations are reported in
other comprehensive income, with tax eects taken into
account, and are thus o-set against the translation dier-
ences that arise when translating the subsidiaries’ balance
sheets into SEK.
Accounts payable
The valuation principle for accounts payable is the amortized
cost principle. The expected lifetime for accounts payable is
short and thus the payables are reported at nominal value
without discounting.
Accounting for derivatives used for hedging purposes
The group applies the hedge accounting requirements of IFRS
9. All derivatives are initially and continuously recognized at
fair value in the Balance sheet. Gains and losses on remeasure-
ment of derivatives used for hedging purposes are recognized
as follows. Changes in value relating to cash ow hedges are
reported in other comprehensive income and are taken to
theincome statement as the hedged cash ow aects the
income statement. Any ineective portion of the change in
value is reported directly in the income statement.
The result of a revaluation of derivatives used to hedge fair
value is reported in the income statement along with changes in
the fair value of the receivable or liability exposed to the hedged
risk. For derivatives designated and qualied as hedging instru-
ments, the method of recognizing the fair value gains or losses
depends on the nature of the item being hedged.
The Group documents, at the inception of the hedge, the rela-
tionship between hedged item and nancial derivative instru-
ment, as well as its risk management objective and strategy. The
Group also documents its assessment, both at the hedge incep-
tion and on an ongoing basis, of whether the derivatives that are
used in hedging transactions are highly eective in osetting the
changes in fair values or cash ows of hedged items based on the
following hedging criteria’s.
• There is an economic relationship between the hedged
itemand the hedging instrument
• The eect of credit risk does not dominate the value
changes that result from that economic relationship and
• The hedge ratio of the hedging relationship is consistent
with risk management strategy.
The table below presents the Group’s nancial assets and
nancial liabilities by measurement category with the carrying
amount and fair value per item. Fairvalue for long-term inter-
est-bearing liabilities has been established by discounting
future payment ows at current market interest rate and
thenconverting to SEK at the current exchange rate. For other
nancial instruments the fair value is estimated to agree with
the carrying amount.
NOTE 3 Financial instruments, cont.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
120
NOTE 3 Financial instruments, cont.
Financial instruments per category
April 30, 2022 April 30, 2021
SEK M Note
Carrying
amount
Fair
value
Carrying
amount
Fair
value
FINANCIAL ASSETS
Financial assets
measured at fair value
through the net income:
Derivative nancial
instruments
– non-hedging 16 16 32 32
Current investments
classied as cash
equivalents 25 3 3 792 792
Financial assets
measured at
amortized cost:
Other nancial assets 21 552 552 423 423
Accounts receivable 23 3,647 3,647 3,281 3,281
Other receivables 24 688 688 582 582
Cash and bank 25 3,074 3,074 3,619 3,619
Financial assets
measured at fair
value through other
comprehensive income:
Equity instruments 21 15 15 60 60
Derivatives used for
hedging purposes:
Derivative nancial
instruments – hedging 135 135 212 212
April 30, 2022 April 30, 2021
SEK M Note
Carrying
amount
Fair
value
Carrying
amount
Fair
value
FINANCIAL LIABILITIES
Financial liabilities
measured at fair value
through the net income:
Derivative nancial
instruments
– non-hedging 55 55 29 29
Other liabilities
(contingent
considerations) 32 32 120 120
Financial liabilities
measured at
amortized cost:
Long-term interest-
bearing liabilities 27 4,099 4,251 3,043 3,250
Short-term interest-
bearing liabilities 27 510 504 2,141 2,174
Accounts payable 1,352 1,352 1,016 1,016
Other liabilities 884 884 803 803
Derivatives used for
hedging purposes:
Derivative nancial
instruments – hedging 384 384 13 13
Distribution by level when measured at fair value
April 30, 2022 April 30, 2021
SEK M Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
FINANCIAL ASSETS
Financial assets measured at fair value through the net income:
Derivative nancial instruments – non-hedge accounting – 16 – 16 – 32 – 32
Current investments classied as cash equivalents 3 – – 3 792 – – 792
Derivatives used for hedging purposes:
Derivative nancial instruments – hedge accounting – 135 – 135 – 212 – 212
Financial assets measured at fair value through
other comprehensive income:
Equity instruments
1)
– – 15 15 60 – – 60
Total nancial assets 3 151 15 168 852 244 – 1,096
FINANCIAL LIABILITIES
Financial liabilities at fair value through the net income:
Derivative nancial instruments – non-hedge accounting – 55 – 55 – 29 – 29
Contingent considerations – – 32 32 – – 120 120
Derivatives used for hedging purposes:
Derivative nancial instruments – hedge accounting – 384 – 384 – 13 – 13
Total nancial liabilities – 439 32 471 – 42 120 162
1)
The reduction of SEK 45 M in 2021/22 in fair value of equity instruments was related to uncertainty in an investment in other companies and measured
at fair value through other comprehensive income. The reclassication has taken place due to the asset is no longer listed on the market.
NOTES FINANCIAL REPORTING
121
ELEKTA ANNUAL REPORT 2021/22
NOTE 3 Financial instruments, cont.
Derivatives outstanding
April 30, 2022 April 30, 2021
SEK M Nominal Asset Liability
Hedge reserve
after tax Nominal Asset Liability
Hedge reserve
after tax
Currency derivatives:
Cash ow hedges 2,756 135 384 –201 5,772 212 13 154
Non-hedge accounting 1,323 16 55 – –22 32 29 –
Currency derivatives, total 4,080 151 439 –201 5,750 244 42 154
Cash ow hedges outstanding
Q1 22/23 Q2 22/23 Q3 22/23 Q4 22/23 23/24
Currencies Currency Amount
Exchange
rate Amount
Exchange
rate Amount
Exchange
rate Amount
Exchange
rate Amount
Exchange
rate
GBP/SEK GBP 27 M 11.497 31 M 10.824 13 M 11.758 37 M 11.720 59 M 11.879
EUR/SEK EUR 12 M 10.171 32 M 10.216 7 M 10.292 16 M 10.292 34 M 10.307
USD/SEK USD 51 M 8.503 69 M 8.494 34 M 8.462 85 M 8.707 103 M 8.984
JPY/SEK JPY 1,000 M 0.079 800 M 0.079 550 M 0.080 1,350 M 0.078 1,725 M 0.079
The table below presents detailed information regarding
theGroup’s outstanding cash ow hedges. Realized results
from cash ow hedges have been recognized on the line
“Currency rate dierences” in the operating income and
amounted to SEK 94 M (164) during the year, of which
SEK17M (0) was related to the ineective portion.
The table above shows how the Group’s nancial assets and
nancial liabilities, which are carried at fair value, have been
categorized in the fair value hierarchy. The dierent levels are
dened as follows. Level 1: Quoted prices on an active market
for identical assets or liabilities. Level 2: Other observable data
than quoted prices included in Level 1, either directly (that is,
price quotations) or indirectly (that is, obtained from price quo-
tations). Level 3: Data not based on observable market data.
Financial instruments, level 1
The fair value of tradeable securities are reported based on
quoted prices on an active market.
Financial instruments, level 2
The fair value of nancial instruments that are not traded on
an active market are determined by means of available valua-
tion techniques. Market information is used when available.
The use of corporate-specic information is avoided whenever
possible. If all important in-data required for a fair value valua-
tion of an instrument is observable, the instrument is in level2.
Specic valuation techniques used in the valuation ofnancial
instruments include, for example, listed market prices, fair
value for interest-rate swaps, calculated as the present value
of estimated future cash ows based on observ able yield, fair
value of currency forward contracts determined through the
use of rates for currency foreign exchange contracts on the
balance sheet date.
Financial instruments, level 3
The change during the year for instruments at level 3 mainly
refers to contingent considerations. Contingent considerations
are valued at the fair value based on data available such as
conditions set forth in the purchase agreement and current
assessments of the estimated fulllment of the conditions.
Movements nancial instruments level 3
Financial instruments, net 2021/22 2020/21
Opening balance May 1 –120 –105
Business combinations –18 –79
Payments 43 47
Reversals 65 –
Reclassications 15 –
Translation dierences –2 16
Closing balance April 30 –18 –120
The reclassication has taken place due to the asset no longer
listed on the market.
Outstanding derivative nancial instruments
The Group’s derivative nancial instruments outstanding at
April 30 are presented with nominal amounts and fair values
in the table below. The total amount of fair values of assets
and liabilities respectively are equivalent to the carrying values
recognized in the balance sheet.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
122
NOTE 3 Financial instruments, cont.
The hedged transactions in foreign currency are estimated to
take place in the coming 24 months. Results from the forward
exchange agreements recognized in the hedge reserve in other
comprehensive income on 30 April 2022, will be accounted for
in the income statement in the periods when the hedged
transactions will aect the income statement. The estimated
future eect from outstanding cash ow hedges are presented
in the table below.
Outstanding cash ow hedges’ estimated eect on the income statement
2022/23 2023/24
SEK M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Expected result from cash ow hedges –44 –47 –37 –67 –21 –17 –12 –4
Osetting of nancial assets and nancial liabilities
Financial assets and nancial liabilities set o only consist of derivative nancial instruments.
In the case of nancial assets and liabilities that are subject
to legally binding osetting agreements, each agreement
between the company and the counterparties permits net
deduction of the relevant nancial assets and liabilities if both
2021/2022 2020/2021
SEK M
Gross
amount
Amounts
set o
in the
balance
sheet
Net
amounts in
the balance
sheet
Amounts
covered by
netting
agreements
but not set
o
Net
amount
Gross
amount
Amounts
set o in
the balance
sheet
Net
amounts in
the balance
sheet
Amounts
covered by
netting
agreements
but not set
o
Net
amount
Financial assets 151 – 151 –4 146 244 – 244 –203 41
Financial liabilities 439 – 439 –293 146 42 – 42 0 41
parties elect to apply net deduction. If both parties are not
in agreement regarding net deduction, gross deduction is
applied. In the event that one party defaults, the other party
is entitled to deduct on a net basis.
Note 4
Estimates and assessments
The preparation of nancial statements and application of
accounting standards require that management use estimates
and assessments. Therefore, they make certain assumptions
which are considered reasonable under the prevailing circum-
stances. Thus, estimates and assessments aect the nancial
reports and they are frequently based on experience as well as
other factors, including expectations of future events. Using
other assumptions than those actually applied in the prepara-
tion of the nancial statements, the result can be dierent and
the actual outcome seldom complies with the anticipated
result.
For Elekta, estimates and assessments are particularly
important in:
• revenue recognition, see
Note 6
• valuation of accounts receivable, see
Note 23
• calculation of deferred taxes, see
Note 14
• impairment testing of goodwill, see
Note 16
• capitalization and amortization of intangible assets,
see
Note 16
• calculation of provisions, see
Note 28
• valuation of leases, see
Note 17
Estimates and assessments are continually reassessed.
NOTES FINANCIAL REPORTING
123
ELEKTA ANNUAL REPORT 2021/22
Segment reporting
Americas EMEA APAC
Other/
Group-wide
1)
Group
total
SEK M 2021/22 2020/21 2021/22 2020/21 2021/22 2020/21 2021/22 2020/21 2021/22 2020/21
Net sales
3)
4,254 3,888 5,321 5,140 4,972 4,735 – – 14,548 13,763
Operating expenses –2,606 –2,386 –3,486 –3,260 –3,409 –3,227 – – –9,501 –8,874
Contribution margin 1,648 1,502 1,835 1,880 1,563 1,507 – – 5,047 4,889
Contribution margin, % 39% 39% 34% 37% 31% 32%
Global costs – – – – – – –3,403 –2,983 –3,403 –2,983
Operating income 1,648 1,502 1,835 1,880 1,563 1,507 –3,403 –2,983 1,643 1,906
Income from participations in associated
companies – – – – 5 –7 5 –7
Financial income – – – – 42 30 42 30
Financial expenses – – – – –200 –295 –200 –295
Exchange rate dierences – – – – 12 –5 12 –5
Income after nancial items 1,648 1,502 1,835 1,880 1,563 1,507 –3,545 –3,259 1,501 1,630
Income tax – – – – – – –345 –377 –345 –377
Net income 1,648 1,502 1,835 1,880 1,563 1,507 –3,890 –3,636 1,157 1,253
Net sales per product type
Solutions
2)
1,819 1,563 3,221 3,126 3,612 3,485 – – 8,652 8,175
Service 2,435 2,325 2,100 2,014 1,360 1,249 – – 5,896 5,588
Total 4,254 3,888 5,321 5,140 4,972 4,735 – – 14,548 13,763
Depreciation/Amortization –352 –519 –597 –608 –89 –77 – – –1,039 –1,204
Investments 416 407 909 352 83 86 – – 1,408 845
1)
Within other/group-wide are costs that can not be allocated by segment such as global costs and items aecting comparability.
Allocations by segment are not done for nancial items and tax.
2)
The product type Solutions includes hardware and software combined as it better reects the business follow-up.
3)
Net sales from internal transactions amounts to SEK 13,348 M (11,489) and has been eliminated in the table above.
Note 5
Segment reporting
Accounting principles
Operating segments are reported in accordance with manage-
ment reporting as reported to the chief operating decision
maker. The chief operating decision maker is the function that
is responsible for allocation of resources and assessment of the
operating segments’ performance. In Elekta, this function has
been identied as the President and CEO who is responsible for
and deals with the continuous administration of the Group
based on the board’s guidelines and instructions. To his aid, he
has the executive management. Elekta’s President and CEO
evaluates business performance from both geographic and
product based perspectives. The geographic follow-up is how-
ever the main perspective and the product based perspective
constitutes a complement to the geographic monitoring and
control. It is from the geographic perspective that the business
activity is conducted and managed. Evaluation of nancial
performance is executed for three geographic regions which
are Elekta’s operating segments:
• Americas
• EMEA
• APAC
The same accounting principles are applied in the segment
reporting as for the Group.
See
Note 16 for information on goodwill per region.
For information regarding tangible assets per country
see
Note 18.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
124
Note 6
Net sales
Accounting principles
Elekta’s revenue is primarily derived from the sales of treatment
solutions and oncology informatics including equipment used
for radiation therapy, radiosurgery and brachytherapy as well
as software products and related services.
Many of Elekta’s products and services are sold on a stand-
alone basis but are often included in bundled deals, which are
arrangements where equipment, software and services may
be included in the same contract. A bundled deal is treated as
a project which is supported by a project team that coordi-
nates the production, delivery and installation, which can
occur at dierent stages. The equipment, installation, soft-
ware and services are distinct performance obligations exclud-
ing the software that is integrated in the hardware.
In most contracts the transaction price consists of a xed
consideration which is clearly stated in the contract and the
products are usually sold without a right of return. In rare cases
contracts can include variable consideration for which the value
is estimated for revenue recognition purposes.
The allocation of the transaction price, including any dis-
count, to the various goods and services (performance obliga-
tions) in a contract is performed based on the relative stand-
alone selling prices for the goods and services identied as per-
formance obligations. As many items included in a bundled
deal are also sold on a stand-alone basis, the stand-alone sell-
ing prices are based on observable prices in most cases. For
items not sold on a stand-alone basis the stand-alone selling
prices have been estimated using the best available market
and internal data relating to those items.
Costs incurred to obtain a contract consist mainly of com-
missions, which is recognized as contract asset and areamor-
tized over the time when the related revenue is recognized.
The timing for revenue recognition of products and services
included in a bundled deal depend on its nature and when con-
trol for each product or service has been transferred to the
customer. Payment terms or conditions for projects dier
between regions. In some markets, partial payments will be
due upon certain events such as order receipt, delivery and
acceptance. In other markets, the entire payment is due upon
completion of implementation or acceptance. Amounts
invoiced are reported as accounts receivable while revenue
recognized amounts not yet invoiced are reported as accrued
income.
Treatment solutions
Elekta sells treatment solutions including hardware, software
and service. Main hardware products are Leksell Gamma
Knife
®
, Linear accelerators, MR-Linacs and Afterloaders. Soft-
ware licenses consist mainly of Oncology informatics systems
(OIS) and Treatment planning systems (TPS). Services include
maintenance and support relating to equipment, software,
training, installation services and warranties. Most bundled
deals include at least one device, software licenses, installa-
tion, service, training and one-year standard warranty that
isincluded in the price. There is a possibility for an extended
warranty in some contracts that is considered as a service
contract. Revenue recognition for these deals is linked to
whencontrol for each identied performance obligation is
transferred to the customer, which for a standard contract
happens at dierent stages over a longer period, usually up
tosix months depending on the geographical market.
Hardware products
In a standard contract, control is considered to be transferred
when the device is delivered to the customer’s site and installa-
tion is started. At this time, the customer has physical posse-
sion of the unit and Elekta has the right to payment for the
equipment delivered.
Software products
For software licenses control is considered to be transferred
and revenue is recognized when the licenses are made avail-
able to the customer, which is usually at the time of accep-
tance of the software.
Service contracts
For service agreements, control is considered to be transferred
over time and revenue is recognized on a straight-line basis
over the contractual term of the arrangement or the expected
period during which the specied services will be performed.
Maintenance and support agreements relating to software
products are generally renewed on an annual basis. Installation
services and training with low values and which span over a
limited time are considered non-material and revenue is recog-
nized when the related device reaches the stage of technical
acceptance.
Estimates and assessment
Changes to the goods and services included in an arrangement
and the amounts allocated to each item could aect the tim-
ing and amount of revenue recognition. Revenue recognition
also depends on the timing of shipment, readiness of the cus-
tomer’s site, availability of products and for some contracts,
customer acceptance terms. If shipments or installations are
not made on scheduled timelines or if the products are not
accepted by the customer in a timely manner, revenues may
dier from expectations.
Revenue recognition does often not coincide with invoicing
to, and payments from, customers. Payment terms or condi-
tions for projects may dier between contracts and regions,
but in a standard Elekta contract partial payments will be due
upon certain events, such as order receipt, shipment and
acceptance. In a standard project, amounts invoiced in accor-
dance with an invoicing plan are reported as accounts receiv-
able and as a contract liability included in advances from cus-
tomers if performance obligations are not yet satised and
revenue cannot be recognized. Amounts that have been rec-
ognized as revenue, but for which Elekta has not yet the right
to invoice according to the invoicing plan agreed, are reported
as contract assets and included in accrued income. For service
contracts the agreed consideration is invoiced and paid in
advance in most markets. When there is a contract agreed and
invoiced to the customer, Elekta usually has the right to pay-
ment even if the performance obligations are still to be satised.
Therefore, a receivable is accounted for with a corresponding
contract liability reported as deferred income.
NOTES FINANCIAL REPORTING
125
ELEKTA ANNUAL REPORT 2021/22
NOTE 6 Net sales, cont.
Net sales for the year amounted to SEK 14,548 M (13,763).
Accrued income amounted to SEK 1,796 M (1,772). Accounts
receivable amounted to SEK 3,647 M (3,281). For more informa-
tion on accounts receivable see
Note 23.
Net sales per country is based on sales to customers in the
respective country. There is no individual customers represent-
ing more than 10 percent of net sales.
Net sales by country
SEK M 2021/22 % 2020/21 %
Sweden 38 0.3 46 0.3
USA 3,228 22.2 3,147 22.9
China 2,314 15.9 2,221 16.1
Japan 953 6.5 926 6.7
Germany 741 5.1 650 4.7
Italy 594 4.1 697 5.1
France 487 3.3 445 3.2
India 482 3.3 397 2.9
Canada 452 3.1 249 1.8
United Kingdom 449 3.1 389 2.8
Australia 344 2.4 312 2.3
Netherlands 339 2.3 304 2.2
Spain 260 1.8 382 2.8
Other countries 3,865 26.6 3,599 26.1
Total 14,548 100.0 13,763 100.0
Net sales per product type and
timing of revenue recognition
SEK M 2021/22 2020/21
Hardware Point in time 7,100 6,595
Software Point in time 1,552 1,581
Service (incl. software) Over time 5,896 5,588
Total 14,548 13,763
Hardware SEK 7,100 M
Software SEK 1,552 M
Service SEK 5,896 M
Note 7
Salaries, other remuneration
and social security costs
Accounting principles
Remuneration paid to employees in the form of wages/salary,
paid vacation, etcetera is accounted for as it is earned.
Share-based compensation
Ongoing share programs are reported according to IFRS 2
Share-based payments and are mainly equity-settled. The
conditions of the share programs state that they may be
settled in other ways than through shares. This possibility
isonly applied to a very limited extent and neither cost nor
obligationare material amounts.
Accounting for equity-settled share-based compensation
programs entails that the instrument’s fair value at grant date
is recognized in the income statement over the vesting period,
with a corresponding adjustment to equity. This leads to an
estimated cost, corresponding to the earned portion of the
estimated share value at allotment, being charged to prot
and loss over the vesting period. For performance-based share
programs, the expected number of vested shares is revised at
each reporting date and the impact of any changes over the
original estimates are recognized in the income statement,
with a corresponding adjustment to equity. Market-based
share programs (LTI 2019/22, LTI 2020/23 and LTI 2021/24) are
not revalued during the remainder of the vesting period after
the fair value is established, except if the condition of contin-
ued employment during the vesting period is no longer fullled.
In addition, provisions are made for estimated employer con-
tributions related to the share programs. Calculations are based
on a theoretical market valuation where the market value is cal-
culated using Monte Carlo based on the share price on the clos-
ing date. For allotted shares, social security expenses are paid
onthe basis of the market value on the allotment date.
Salaries, other remuneration
and social security costs
Group Parent Company
SEK M 2021/22 2020/21 2021/22 2020/21
Salaries and remunerations:
Board and Managing directors 125 115 27 24
Other employees 3,858 3,308 67 43
Total salaries and other
remunerations 3,983 3,423 94 67
Social security costs:
Pension costs 294 215 15 12
Other social security costs 488 451 30 28
Total social security costs 782 667 45 41
Total salaries, other remunera-
tion and social security costs 4,766 4,089 139 108
Bonuses included in the above salaries and other remunera-
tions paid to the Boards and the Managing directors of subsid-
iaries amounted to SEK 30 M (34), and SEK 12 M (8) in the Par-
ent Company. Total pension costs amounted to SEK 294 M
(215) of which SEK 23 M (19) concern dened benet pension
plans. Pension costs in the Parent Company amounted to a
total of SEK 15 M (12) and the full amount related to dened
contribution pension plans. For further information regarding
the dened benet pension plans see
Note 28.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
126
NOTE 7 Salaries, other remuneration and social security costs, cont.
Remuneration to the Board of Directors
The AGM resolved the adoption of fees to the Board of Directors totaling SEK 6,015 K (5,475), of which SEK 6,015 K (5,475) were paid.
Thefees were distributed in accordance with the table below.
Fees for the Board of Directors
April 30, 2022 April 30, 2021
SEK Thousands
Regular
remuneration
Remuneration
compensation
committee
Remuneration
audit committee
Regular
remuneration
Remuneration
compensation
committee
Remuneration
audit committee
Chairman:
Laurent Leksell 1 410 135 – 1,280 115 –
Members:
Cecilia Wikström 605 90 – 550 80 –
Wolfgang Reim 605 90 – 550 80 –
Jan Secher 605 – 160 550 – 150
Birgitta Stymne Göransson 605 – 250 550 – 240
Johan Malmqvist 605 – 160 550 – 150
Caroline Leksell Cooke 605 90 – 550 80 –
Total 5,040 405 570 4,580 355 540
Remuneration and other benets to Executive Management during the year 2021/22
SEK Thousands
Fixed
remuneration
Variable
remuneration
Share-based
compensation
2)
Other
benets
Pension
costs Total
President and CEO 7,896 4,811 2,142 114 1,970 16,932
Other senior executives resident in Sweden (5) 11,663 7,480 5,017 271 2,744 27,176
Other senior executives resident abroad (11) 37,073 17,307 10,483 1,967 3,071 69,901
Total senior executives 56,632 29,598 17,642 2,352 7,785 114,009
Remuneration and other benets to Executive Management during the year 2020/21
SEK Thousands
Fixed
remuneration
Variable
remuneration
Share-based
compensation
2)
Other
benets
Pension
costs Total
President and CEO
1)
12,656 6,993 1,133 124 5,331 26,238
Other senior executives resident in Sweden (8) 9,177 6,167 3,266 273 2,691 21,574
Other senior executives resident abroad (11) 37,880 20,499 7,507 1,369 1,488 68,743
Total senior executives 59,713 33,660 11,906 1,765 9,511 116,554
1)
Richard Hausmann resigned as President and CEO June 2, 2020 and Gustaf Salford took over as Acting President and CEO from June 2, 2020. In november, 2020, Gustaf Salford was
appointed President and CEO. Of the remuneration and other benets listed above to the President and CEO SEK 13,562 T are remunerations and other benets to Richard Hausmann.
Variable remuneration pertains to the bonus for the 2021/22 and 2020/21 scal years respectively, partly paid quarterly during
each scal year and partly paid in the year after.
Remuneration to executive management
The guidelines for remuneration to the executive manage-
ment, adopted by the AGM in 2020, are presented on
page
102. The Executive Management for 2021/22 was comprised of
a total of 17 people, of whom 6 are located in Sweden and the
other 11 in the Netherlands, the UK, the US, Turkey, Germany
and China. The tables below display remunerations and other
benets to the Executive Management in 2021/22 and 2020/21
respectively.
NOTES FINANCIAL REPORTING
127
ELEKTA ANNUAL REPORT 2021/22
NOTE 7 Salaries, other remuneration and social security costs, cont.
Share based payment
As per April 30, 2022, Elekta has three outstanding share pro-
grams. The share program performance share plan LTI 2018/21,
which was outstanding as per April 30, 2021, has expired during
the year.
The total number of shares that may be allotted under the
share programs is 1,146,332 (1,187,790) B-shares. The share pro-
grams are secured by delivery of shares already held or repur-
chased by Elekta and, consequently, no new shares will be
issued under the share programs. Share programs awarded to
employees have a potential dilution eect. However, certain
performance targets must be met for dilution to occur and this
was not the case at the closing date.
The share-related incentive programs are reported in accor-
dance with IFRS 2 Share-based payments. The recognized
costs related to the share programs amounted to SEK 19 M (12)
and social security amounted to SEK2 M (4). For more informa-
tion see
page 102.
Share programs
The AGM has for a number of years resolved to adopt share pro-
grams called performance share plans. Performance share plan
LTI 2018/21, resolved by the AGM in 2018, expired during the year.
For information on the program see
the Annual Report
2020/21. Outstanding share programs as per April 30 2022 were
performance share plan LTI 2019/22, LTI 2020/23 and LTI 2021/24.
The performance share plans cover approximately 28 (LTI 2019/22),
25 (LTI 2020/23) and 29 (LTI 2021/24) key employees of the
Group respectively. The performance share plans entitle the
participants to obtain, free of charge, B-shares in Elekta upon
fulllment of certain performance requirements.
The main terms of the performance share programs are:
• A performance share award shall entitle a participant to
receive, subject to the terms and conditions set forth in the
performance share plans and applicable award agreements,
a number of B-shares based upon the attainment of per-
formance targets over a three-year performance period
• Each performance share award shall be subject to forfeiture
in the event of termination of employment due to a reason
other than death, disability or retirement or failure to attain
performance targets over the applicable performance
period
• Performance share awards shall be settled through the
delivery of shares unless otherwise decided by the board
• The number of shares to be allotted will depend on the
degree of fulllment of nancial targets
The nancial targets for performance share plans are dened
as Total Shareholder Return (TSR) relative to the OMXS30 index
over a three-year period. The minimum performance require-
ment is that Elekta TSR outperform the OMXS30 index with at
least +0,1 percent. The maximum performance level requires
that Elekta TSR outperform the OMXS30 Index at or above +15
percent. If the minimum performance level is reached, the allo-
cation will amount up to (and will not exceed) 30 percent of
annual base salary at the beginning of the scal year 2019/20
for performance share plan LTI 2019/22, at the beginning of s-
cal year 2020/21 for performance plan LTI 2020/23 and at the
beginning of scal year 2021/22 for performance plan LTI
2021/24. The actual minimum value for each participant will be
subject to an individual performance evaluation for the past
scal year. If the maximum performance level is reached or
exceeded, the allocation will amount to (and will not exceed)
the maximum number of performance shares. If performance
is below the maximum level but above the minimum level, a
proportionate allocation of shares will be made. No allocation
will be made if performance is below the minimum level.
The terms of the performance share plan further state that:
• The performance targets may be adjusted should an event
occur that aects the operations of the Company or the
number of outstanding Elekta shares or otherwise aecting
the performance targets and deemed relevant by the board.
• The performance targets will be nally evaluated at the end
of the applicable performance period and each participant
will receive the number of shares he/she is entitled to
according to the participant’s award agreement depending
on the attainment of the applicable performance targets
over the performance period
• The value that a participant can receive in settlement of
the performance share award is maximized at 400 percent
of the value of the shares at the date of grant of the per-
formance share award
• Potential allotments of shares will take place September 16,
2022 (LTI 2019/22), September 16, 2023 (LTI 2020/23) and
September 16, 2024 (LTI 2021/24) respectively
Participants shall at allotment of shares receive compensation
for any cash dividends paid during the respective three-year
performance period.
Before the number of shares to be allotted is nally deter-
mined, the board shall examine whether the allotment is rea-
sonable, taking into consideration the Company’s nancial
results and position, conditions on the stock market and other
circumstances, and if not, as determined by the board, reduce
the number of shares to be allotted to the lower number of
shares deemed appropriate by the board. Delivery of shares
and dividend compensation in settlement of the performance
share award shall be made as soon as practicable following the
lapse of the performance period.
The conditions of the share programs state that the right to
performance share awards may be settled in other ways than
through the delivery of shares. As per April 30, 2022, there were
no material obligations to settle in any other way than through
shares.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
128
Share program
LTI
2018/21
1)
LTI
2019/22
2)
LTI
2020/23
2)
LTI
2021/24
2)
Originally designated number of shares 530,799 410,307 510,622 483,189
Share price used forcalculation of theoretical value SEK 120 64 65 53
Theoretical value at time of issue, SEK 63,695,880 26,259,648 33,190,430 25,652,504
Allotment of shares 2021–09–14 2022–09–16 2023–09–16 2024-09-16
Number of shares as of April 30, 2021 397,828 315,115 474,847 –
Granted during the year – – – 483,189
Cancelled/Expired during the year –397,828 –51,500 –50,847 –24,472
Released during the year – – – –
Number of shares as of April 30, 2022 – 263,615 424,000 458,717
1)
Average closing share price of the Elekta class B share on the exchange NASDAQ Stockholm during a period of ten trading days before the day
the participants are oered to participate in the program.
2)
For the market-based perfomance conditions, a Monte Carlo approach has been used to determine the fair value of granted performance shares.
NOTE 7 Salaries, other remuneration and social security costs, cont.
Note 8
Depreciation/amortization/write-down
Group
SEK M 2021/22 2020/21
Cost of products sold 101 95
Selling expenses 161 153
Administrative expenses 245 234
R&D expenses 532 721
Total 1,039 1,204
There has been no write-downs of tangible assets or intangible
assets during 2021/22 or 2020/21.
Note 9
Remunerations to auditors
Group Parent Company
SEK M 2021/22 2020/21 2021/22 2020/21
Group auditor (EY)
Audit engagements 11 10 5 3
Audit-related services 0 1 – 0
Tax consultancy 0 1 – 0
Other services 1 0 0 –
Total Group auditor 13 11 5 4
Other auditors
Audit engagements 0 1 – –
Audit-related services 1 0 – –
Tax consultancy 9 10 1 4
Other services 0 0 – –
Total other auditors 11 12 1 4
Total 23 24 6 8
Audit engagements refers to remuneration to auditors for work
related to the statutory audit, including audit of the annual
report and the accounting records, the administration of the
board of directors and the managing director as well as audit
consultancy work directly linked to the audit assignment.
Audit-related services comprises quality assurance services,
including consultancy work driven by observations made in
theaudit engagement.
Other services refers to other services/consultancy work
which are not covered by any of the other categories above, e g
consultancy work related to internal control and acquisitions.
Note 10
Expenses by nature
In the income statement costs are broken down by function.
Operating expenses amounts to SEK 12,904 M (11,857). Below,
operating expenses are broken down by nature:
Group
SEK M 2021/22 2020/21
Products, materials and consumables 6,119 5,454
Personnel costs 5,018 4,268
Depreciation and amortization (Notes 8, 16, 17 and 18) 1,039 1,204
Other expenses 728 932
Total 12,904 11,857
Note 11
Income from participations
in Group companies
Parent Company
SEK M 2021/22 2020/21
Dividends from subsidiaries 1,101 354
Group Contribution 20 –
Other – –27
Total 1,121 327
Note 12
Net nancial items
Group
SEK M 2021/22 2020/21
Income from participations
in associated companies 5 –7
Interest income, external 42 29
Other nancial income 0 0
Financial income 42 30
Interest expenses, other external loans –107 –192
Interest expenses, lease liabilities –41 –41
Other nancial expenses
1)
–53 –61
Financial expenses –200 –295
Exchange rate dierences on nancial instruments 12 –5
Net nancial items –142 –277
1)
Other nancial expenses mainly consist of bank charges.
NOTES FINANCIAL REPORTING
129
ELEKTA ANNUAL REPORT 2021/22
Note 13
Interest income, interest expense
and similar items
Parent Company
SEK M 2021/22 2020/21
Interest income from subsidiaries 125 135
Interest income, external 13 18
Interest income and similar items 138 154
Interest expenses to subsidiaries –11 –6
Interest expenses, other external loans –103 –185
Other nancial expenses –11 –26
Interest expenses and similar items –125 –217
Note 14
Taxes
Accounting principles
The tax expense in the income statement includes all tax that is
to be paid or received for the current year, adjustments relating
to previous years’ current tax, and changes in deferred tax. De-
ferred tax is calculated and reported in accordance with the bal-
ance sheet method. In accordance with this method, de ferred
tax is calculated on the basis of the temporary dierences be -
tween the tax bases and the carrying amounts of assets and lia-
bilities. Deferred tax assets relating to loss carry-forwards and
other future tax credits are recognized to the extent it is proba-
ble that deductions can be made against future prots. Valua-
tion is based on nominal amounts based on the tax rules prevail-
ing in each country and the anticipated tax rate for the follow-
ing year in each country. Deferred taxes relating to temporary
dierences attributable to investments in subsidiaries are not
recognized in the consolidated nancial statements since Elekta
AB, in all cases, can control the time of reversal of the temporary
dierences and it is not considered probable that such a reversal
will occur in the foreseeable future. Deferred tax assets and
deferred tax liabilities are oset when there is a legally enforca-
ble right to oset tax assets against tax liabilities and when the
deferred tax amounts refer to the same tax authority. For items
recognized in the net income, the related tax eects are also
recognized in the net income. For items recognized in other
comprehensive income, related tax eects are also recognized
in other comprehensive income.
Estimates and assessments
Deferred tax assets and deferred tax liabilities are balance sheet
items which are subject to estimates and assessments. Deferred
tax is calculated on temporary dierences between the carrying
amounts and the tax values of assets and liabilities. Estimates
and assessments aect the recognized deferred tax amounts
inthe determination of the carrying amounts of the dierent
assets and liabilities, and also through forecasts regarding
future taxable prots in those cases where a future utilization of
deferred tax assetsdepends on future taxable prots. Deferred
taxes amounted to a net asset of SEK 67 M (
–79), whereof assets
SEK 616 M (436) and liabilities SEK 549M (515).
Income taxes
Group Parent Company
SEK M 2021/22 2020/21 2021/22 2020/21
Current taxes –402 –401 –11 –
Deferred taxes 57 24 17 –14
Total –345 –377 6 –14
Group
2021/22 2020/21
SEK M SEK M % SEK M %
Income after nancial items 1,501 – 1,630 –
Swedish corporate
income tax rate –309 –20.6 –349 –21.4
Dierence between
corporate tax rate in Swe-
den and other countries –71 –4.7 –46 – 2.8
Taxes related to prior years –10 –0.7 3 0.2
Non-taxable income 62 4.1 38 2.3
Non-deductible expenses –12 –0.8 –31 – 1.9
Eect of tax rate changes 30 2.0 3 0.2
Tax losses carried forward
without corresponding
increase in deferred taxes –48 –3.2 –8 –0.5
Utilization of previously
unrecognized tax losses 15 1.0 15 0.9
Other –2 –0.1 – 2 – 0.1
Eective tax rate –345 –23.0 –377 –23.1
Current tax, net (liability –/receivable +)
Group Parent Company
SEK M 2021/22 2020/21 2021/22 2020/21
Opening balance, May 1 29 –108 17 17
Business combination 1 – – –
Reclassications 32 27 – –
Adjustment for prior years –31 –11 –11 –
Current tax for the year –370 –389 – –
Paid taxes 452 465 11 –
Divestments – 33 – –
Translation dierences –7 11 – –
Closing balance, April 30 104 29 17 17
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
130
Deferred tax assets and deferred tax liabilities
Deferred tax assets/liabilities in the balance sheet are attributable to the following:
Group Assets (+) Liabilities (–) Net
SEK M April 30, 2022 April 30, 2021 April 30, 2022 April 30, 2021 April 30, 2022 April 30, 2021
Loss carry-forwards 310 146 – – 310 146
Untaxed reserves – – 0 –27 0 –27
Intangible assets 0 24 –821 –596 –821 –572
Tangible xed assets 35 31 –68 –48 –33 –17
Right of use assets 22 17 – – 22 17
Financial assets/liabilities 83 1 0 –44 83 –43
Provisions 69 96 –35 –12 34 84
Accrued expenses 61 60 – – 61 60
Other assets 397 297 –36 –90 361 207
Other liabilities 54 73 –4 –6 51 67
Deferred tax assets/tax liabilities 1,031 744 –964 –823 67 –79
Osetting –415 –308 415 308 – –
Net deferred tax assets/tax liabilities 616 436 –549 –515 67 –79
Tax relating to components
of other comprehensive income
Group Parent Company
SEK M 2021/22 2020/21 2021/22 2020/21
Revaluation of dened
benet pension plans –7 0 – –
Revaluation of cash-ow
hedges 92 –48 – –
Net gain/loss on equity
instruments designated at
fair value 9 –43 – –
Total 94 –90 – –
Deferred tax assets (+)/liabilities (–), net
SEK M Group, net Parent Company, net
Opening balance May 1, 2020 –41 41
Business combinations 0 –
Divestments 3 –
Reclassications –3 –
Adjustment for prior years 14 12
Change in tax legislations 3 1
Deferred taxes for the year 7 –26
Deferred taxes charged in other
comprehensive income –90 –
Translation dierences 30 –
Closing balance April 30, 2021 –79 27
Reclassications 2 –
Adjustment for prior years 22 11
Change in tax legislations 30 –
Deferred taxes for the year 5 6
Deferred taxes charged in other
comprehensive income 94 –
Translation dierences –7 –
Closing balance April 30, 2022 67 44
The Group has tax loss carry forwards of approximately
SEK 508 M (308) for which deferred tax assets have not been
recognized. These tax loss carry forwards have long or indenite
periods of utilization and are subject to regular assessment of
whether it is probable that deductions can be made against
future prots.
NOTE 14 Taxes, cont.
NOTES FINANCIAL REPORTING
131
ELEKTA ANNUAL REPORT 2021/22
Research and development
Research costs are expensed as they are incurred. In those
instances in which it is dicult to distinguish between the
research phase and the development phase in a project, the
entire project is considered as research and is expensed as
incurred. Identiable costs for the development of new prod-
ucts are capitalized to the extent that these are considered to
provide future economic benets. In other instances, develop-
ment expenditures are expensed as they are incurred. Costs for
development once reported in the income statement are never
capitalized in future periods. Capitalized expenditures are
amortized on a straight-line basis from the time when the
asset is available for use, which normally occurs when it is pro-
duced commercially, and during the estimated useful life of
the asset. The amortization period is 3–5 years.
Customer relations and other intangible assets
Intangible assets also include technology, brands and cus-
tomer relations. In conjunction with the acquisition of such
assets, the acquisition values are reported as assets, which are
amortized on a straight line basis over the estimated useful
life. Surplus value in acquired order backlog is also reported
as other intangible assets.
Amortization periods:
Technology 5–11 years
Brands 6–10 years
Customer relations 5–20 years
Order backlog 0.5–1 year
Impairment
The carrying amount of a depreciated asset is tested for impair-
ment whenever there are indications that the carrying amount
might not be recoverable. If there are indications of impairment,
the asset’s recoverable amount is calculated. The recoverable
amount consists of the higher of the value in use of the asset in
operations and the value that would be received if the asset was
sold to a third party, the net realizable value. Value in use con-
sists of all incoming and outgoing payments attributable to the
asset during the period it is expected to be used in operations,
plus the net realizable value at the end of the useful life. If the
calculated recoverable amount is less than the carrying amount,
impairment is made to the asset’s recoverable amount. An
impairment loss recognized in previous periods is reversed if the
reasons for the impairment no longer exist. However, a reversal
will not be higher than the carrying amount would have been if
an impairment loss had not been recognized in previous periods.
Goodwill is subject to annual impairment testing even if there
are no indications of impairment. The carrying amount of good-
will is allocated to cash generating units. When testing for impair-
ment of goodwill, the assets are grouped in cash-generating units
and assessments are made on the basis of these units’ future
cash ows. Impairment losses on goodwill are not reversed.
All impairment losses, and any reversals of the same, are
recognized in theincome statement.
Note 15
Earnings per share
Before dilution
The calculation of earnings per share before dilution is based
on the net income attributable to Parent Company sharehold-
ers divided by the weighted average numbers of shares out-
standing during the year excluding treasury shares.
2021/22 2020/21
Net income attributable to Parent Company
shareholders (SEK M) 1,154 1,254
Weighted average number of shares (thousands)
Total number of ordinary shares 383,568 383,568
Eect of holding of treasury shares –1,485 –1,485
Weighted average number before dilution
(thousands) 382,083 382,083
Earnings per share before dilution (SEK) 3.02 3.28
After dilution
Diluted earnings per share is calculated by adjusting the
weighted average numbers of shares outstanding to assume
conversion of all dilutive potential ordinary shares. The Group’s
long term incentive programs have a dilutive potential.
2021/22 2020/21
Net income attributable to Parent Company
shareholders (SEK M) 1,154 1,254
Weighted average number of shares (thousands)
Total number of ordinary shares 383,568 383,568
Eect of holding of treasury shares –1,485 –1,485
Adjusted for long-term incentive programs – –
Weighted average number before dilution
(thousands) 382,083 382,083
Earnings per share before dilution (SEK) 3.02 3.28
Note 16
Intangible assets
Accounting principles
Intangible assets contain goodwill, capitalized development
costs, customer contracts, customer relationships and other
intangible assets. Other intangible assets mainly consist of
acquired technology. Amortization of intangible assets is
reported in the income statement and allocated to functions
as applicable. There are no intangible assets related to manu-
facturing processes or the like, therefore no amortization is
allocated to cost of goods sold.
Goodwill
Goodwill comprises the positive amount by which the sum of
(i) the cost of shares in subsidiaries, (ii) the value of non-con-
trolling interest and (iii) the fair value of previously held equity
interest exceeds the fair value of the Group’s share of acquired
identiable net assets at acquisition. Goodwill is carried at cost
less accumulated impairment losses. Goodwill is tested for
impairment on an annual basis, or more frequently if indi-
cated. See also section Impairment.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
132
Estimates and assessment
For the Group, the most signicant estimates and assumptions
are those relating to impairment testing of goodwill. This
means that the eect on the nancial reports may be consid-
erable if the estimates and assessments made would prove to
deviate signicantly from the actual outcome. In connection
with impairment testing of goodwill the carrying amount is
compared with the recoverable amount. The recoverable
amount is determined by the higher of an asset’s net realizable
value and its value in use. Normally, it is not possible to deter-
mine the net realizable value. Therefore, the value in use is nor-
mally the value being compared with the carrying amount.
Thus, each cash generating unit’s value in use is calculated in
assessing any impairment of goodwill. Calculations are per-
formed through discounting future estimated cash ows. In
order to perform the calculations a number of assumptions
concerning future circumstances and estimates of parameters
are made, for example growth and discount rate. Any adjust-
ments of the assumptions made could have an eect on the
carrying amount of the goodwill. Assuming a lower growth
rate would lead to a lower recoverable amount. A higher dis-
count rate would also lead to a lower recoverable amount.
Goodwill amounted to SEK 6,499 M (5,973).
Other intangible assets mainly relates to technology
acquired through business combinations. Capitalized develop-
ment costs comprise capitalized expenditure for research and
development as well as other capitalized development costs
such as software. Total capitalized development costs
amounted to SEK 1,166 M (677) for the year whereof capitaliza-
tion of development costs within R&D represented
SEK 1,157 M (676).
NOTE 16 Intangible assets, cont.
Intangible assets
Group Parent Company
SEK M Goodwill
Capitalized
development
costs
Customer
relationships Tecnology
Patents,
Licenses
Total
Group
Other
intangible
assets
Total
Parent
Company
Accumulated acquisition value May 1, 2021 5,973 5,843 1,575 636 338 14,363 91 91
Business combinations 57 47 45 – – 148 – –
Purchases/capitalization – 1,166 36 – 18 1,220 – –
Sold/scrapped – –1 – – 10 6 – –
Translation dierences 470 662 66 70 27 1,292 – –
Accumulated acquisition value April 30, 2022 6,499 7,716 1,721 706 393 17,035 91 91
Accumulated amortization & impairment May 1, 2021 – –3,987 –857 –461 –280 –5,585 –45 –45
Amortization for the year – –493 –97 –18 –9 –617 –7 –7
Sold/scrapped – 1 – – –10 –6 – –
Translation dierences – –420 –54 –63 –25 –562 – –
Accumulated amortization & impairment April 30, 2022 – –4,899 –1,008 –542 –324 –6,773 –52 –52
Carrying amount April 30, 2022 6,499 2,817 713 164 69 10,262 39 39
Accumulated acquisition value May 1, 2020 6,311 5,762 1,672 751 367 14,863 91 91
Reclassications – 4 – – –4 – – –
Business combinations 228 – 20 30 – 278 – –
Divested companies – –46 – – – –46 – –
Purchases/capitalization – 677 – – 2 678 – –
Sold/scrapped – – – –57 –4 –61 – –
Translation dierences –566 –553 –118 –88 –24 –1,348 – –
Accumulated acquisition value April 30, 2021 5,973 5,843 1,575 636 338 14,363 91 91
Accumulated amortization & impairment May 1, 2020 – –3,687 –836 –575 –297 –5,394 –38 –38
Divested companies – 46 – – – 46 – –
Amortization for the year – –685 –90 –18 –10 –803 –7 –7
Sold/scrapped – – – 57 4 61 – –
Translation dierences – 340 69 74 22 505 – –
Accumulated amortization & impairment April 30, 2021 – –3,987 –857 –461 –280 –5,585 –45 –45
Carrying amount April 30, 2021 5,973 1,856 718 175 57 8,779 46 46
Impairment testing
Goodwill is tested for impairment every year in order to assure
that the carrying amount of each of the Group’s cash-gener-
ating units is not higher than its recoverable amount. The
Group’s cash-generating units equal the geographic regions,
which also constitute the Group’s operating segments.
Thecarrying amount equals capital employed and the recover-
able amount for each cash- generating unit is determined
based on a calculation of value in use for each unit. The alloca-
tion of goodwill to cash-generating units (operating segments)
is shown in thefollowing table.
NOTES FINANCIAL REPORTING
133
ELEKTA ANNUAL REPORT 2021/22
Goodwill by segment
SEK M April 30, 2022 April 30, 2021
Americas 1,836 1,687
EMEA 2,427 2,231
APAC 2,236 2,055
Total 6,499 5,973
The value in use for each unit is derived from discounted cash
ows, based on estimated future cash ows. The estimates are
based on the nancial budget for the next scal year as deter-
mined by the Executive Management, and expected future
development up to ve years. Assumptions regarding sales
volume, sales prices, operating expenses and product mix
formthe basis for estimated future growth and margin devel-
opment. Volume assumptions are based on historical out-
come, the Executive Management’s expectations on market
development, and expected global market growth. Price
assumptions are based on current market trends and ination
forecasts. Margin development is based on current margin lev-
els and product mix adjusted for expected price changes and
possible changes in the product mix. For periods after ve
years, the extrapolation of expected cash ows has been
assumed to be a prudent 2 percent (2), which is considerably
lower than the anticipated industry growth. The cash ows
have been discounted using a pre-tax interest rate of 8 percent
(8). The interest rate corresponds to the Group’s current
weighted cost of capital (WACC) and is based on current mar-
ket assessments.
Impairment testing is performed in April/May every year,
after the budget and business plans have been determined by
the Executive Management. The 2022 (2021) test showed that
there is no impairment.
Sensitivity analysis have been carried out with regard to the
discount rate (risk) and long-term growth with a general
reduction in the growth rate after ve years of 2 percentage
points (2) (implying an assumption of zero growth) and a gen-
eral increase in the weighted capital cost of 2 percentage
points (2). The sensitivity analyses did not demonstrate any
impairment.
In addition to the annual impairment test, goodwill is tested
whenever there are indications of impairment.
Purchases/capitalization per country
Sweden, SEK 64 M
United Kingdom, SEK 630 M
USA, SEK 390 M
Netherlands, SEK 79 M
Other countries, SEK 48 M
Canada, SEK 9 M
Note 17
Leases
Accounting principles
Elekta’s lease contracts mainly consist of contracts for prem-
ises, vehicles and equipment. For premises and equipment,
theGroup accounts for the lease and non-lease components of
a contract separately. Leases are recognized as a liability and
acorresponding right-of-use asset at the date at which the
leased asset is available for use by the Group. Lease liabilities
include the net present value of the following lease payments:
• xed payments, less any lease incentives receivable
• variable lease payment that are based on an index or a
rate, initially measured using the index or rate as at the
commencement date
• amounts expected to be payable by the Group under resid-
ual value guarantees
• the exercise price of a purchase option if the Group is rea-
sonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease
term reects the exercise of that option
The lease payments are discounted using the Group’s incremen-
tal borrowing rate, since the interest rate implicit in the lease
cannot be readily determined in most cases. The incremental
borrowing rate is the rate that the individual lessee would have
to pay to borrow the funds necessary to obtain an asset of simi-
lar value to the right-of-use asset in a similar economic environ-
ment with similar terms, security and conditions. To determine
the incremental borrowing rate the Group uses a risk-free inter-
est rate and adjusts for credit risk as well as specic adjustments
for dierent durations and currencies.
Lease payments are allocated between amortization of the
lease liability and interest expenses. The interest expense is
charged to the income statement over the lease term to pro-
duce a constant periodic rate of interest on the remaining bal-
ance of the lease liability for each period. Right-of-use assets
are measured at cost comprising the following:
• the amount of the initial measurement of the lease liability
• lease payments made at or before the commencement
date less any lease incentives received
• any initial direct costs, and
• an estimate of expected restoration costs
NOTE 16 Intangible assets, cont.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
134
Right-of-use assets are depreciated on a straight-line basis
over the shorter of the asset’s useful life and the lease term. If
the group is reasonably certain to exercise a purchase option,
the right-of-use asset is depreciated over the underlying asset’s
useful life.
The Group’s lease contracts for premises typically range
between xed periods of 1 to 20 years and the vehicle leases
usually have a lease term of 3 to 5 years. Elekta has a number
of contracts where the contractual terms include extension
and termination options that are included when it is deter-
mined as reasonably certain that they will be exercised. The
assessment of reasonable certainty is only revised if a signi-
cant event or a signicant change in circumstances occurs.
When adjustments to lease payments or reassessments of the
lease term are conducted, the lease liability is remeasured and
adjusted against the right-of-use asset. The Group remeasures
the lease liability using a revised discount rate if the lease term
is reassessed.
The Group is exposed to potential future increases in variable
lease payments based on an index or rate, which are not
included in the lease liability until they take eect.
Payments associated with short-term leases and low-value
assets are recognized on a straight-line basis as an expense in
the income statement. Short-term leases are leases with a
lease term of less than 12 months. The Group does not apply
IFRS 16 to intangible assets. Provided that Elekta’s operations
continue to the current extent, future lease commitments are
deemed to be in par with current commitments.
As of April 30, 2022 the balance sheet shows the following
amounts related to leases:
Right-of-use assets
SEK M Premises Vehicles Total
Opening accumulated acquisition value
May 1, 2021 1,201 148 1,349
Additions
1)
125 50 175
Terminations –60 –31 –91
Translation dierences 118 9 127
Accumulated acquisition value
April 30, 2022 1,384 176 1,560
Opening balance accumulated
depreciation May 1, 2021 –337 –59 –396
Depreciation for the year –184 –46 –229
Terminations 57 27 84
Translation dierences –39 –4 –44
Accumulated depreciation
April 30, 2022 –503 –82 –585
Carrying amount April 30, 2021 881 94 975
SEK M Premises Vehicles Total
Opening accumulated acquisition value
May 1, 2020 1,260 134 1,394
Additions
1)
69 65 134
Terminations –11 –39 –49
Translation dierences –117 –13 –130
Accumulated acquisition value
April 30, 2021 1,201 148 1,349
Opening balance accumulated
depreciation May 1, 2020 –190 –49 –239
Depreciation for the year –175 –48 –223
Terminations 6 32 39
Translation dierences 22 5 27
Accumulated depreciation
April 30, 2021 –337 –59 –396
Carrying amount April 30, 2021 864 89 953
1)
Additions includes new lease contracts, index-adjustments and remeasurements.
For maturity analysis of lease liabilities see
Note 2.
Amounts recognized in
the income statement
SEK M 2021/22 2020/21
Depreciation for the year 229 223
Interest expense (included in nance cost) 41 41
Expense relating to short-term leases (included
in cost of goods sold and administrative
expenses) 1 3
Expense relating to leases of low-value assets
that are not shown above as short-term leases
(included in administrative expenses) 5 5
Total 276 272
No material variable lease payments not included in the lease
liability has been identied. Low-value assets comprise small
items such as printers and coee machines.
Total cash outow for leases during scal year 2021/22 was
SEK 267 M (256).
Leasing fees paid by the Parent Company during the year
amounted to SEK 221 K. Future leasing fees due for payment
within one year amount to SEK 153 K, after 1 year but within
5years to SEK 85 K.
The operating lease contracts are mainly contracts for
premises where the business is conducted.
NOTE 17 Leases, cont.
NOTES FINANCIAL REPORTING
135
ELEKTA ANNUAL REPORT 2021/22
Tangible assets
SEK M
Machinery
etc for
production
Equipment,
tools and
installations
Operational
leasing Buildings Total
Accumulated acquisition value May 1, 2021 396 1,727 25 228 2,376
Business combinations – 1 – – 1
Purchases 21 143 21 3 188
Sold/scrapped –16 –63 – 0 –80
Translation dierences 20 127 7 18 175
Accumulated acquisition value April 30, 2022 423 1,934 53 250 2,660
Accumulated depreciation and impairment May 1, 2021 –259 –1,122 – –98 –1,480
Reclassications –1 1 – – –
Sale/disposals 16 61 – 0 78
Depreciation for the year –36 –141 –3 –13 –192
Translation dierences –13 –88 0 –8 –110
Accumulated depreciation and impairment April 30, 2022 –294 –1,289 –3 –119 –1,706
Carrying amount April 30, 2022 129 645 49 130 954
Accumulated acquisition value May 1, 2020 370 1,818 – 235 2,423
Business combinations – 0 – – 0
Divested companies –10 –18 – – –28
Reclassications 29 –29 – – –
Purchases 19 113 27 8 167
Sold/scrapped –2 –24 – – –26
Translation dierences –10 –133 –2 –15 –161
Accumulated acquisition value April 30, 2021 396 1,727 25 228 2,376
Accumulated depreciation and impairment May 1, 2020 –246 –1,118 – –91 –1,455
Divested companies 8 16 – – 24
Reclassications –1 1 – – –
Depreciation for the year –32 –132 – –14 –178
Sold/scrapped 1 24 – – 25
Translation dierences 11 87 – 6 104
Accumulated depreciation and impairment April 30, 2021 –259 –1,122 – –98 –1,480
Carrying amount April 30, 2021 137 605 25 130 897
Tangible assets by country
SEK M 2021/22 2020/21
Sweden 65 65
United Kingdom 413 392
China 150 139
Netherlands 131 127
USA 76 81
Other countries 119 93
Total 954 897
Sweden, SEK 65 M
United Kingdom, SEK 413 M
China, SEK 150 M
Netherlands, SEK 131 M
USA, SEK 76 M
Other countries, SEK 119 M
Note 18
Tangible assets
Accounting principles
Tangible assets acquired by Group companies are reported at
cost, less accumulated depreciation and any write-downs.
Assets in acquired com panies are reported at fair value on the
acquisition date after deduction of subsequent accumulated
depreciation. Buildings are depreciated on a straight-line basis
over 50 years. Machinery and equipment are depreciated on a
straight-line basis during its economic life of between 3and 5
years. Installations and improvements on third party property
are depreciated over the period of the lease agreement.
The residual value of assets and their useful economic
livesare reviewed annually and adjusted as required, see
Note 16 for impairment principles. See
Note 17 for
rightof use assets.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
136
Note 19
Shares in subsidiaries
Parent Company
SEK M 2021/22 2020/21
Opening balance May 1 2,590 2,251
Investments 7 284
Shareholder contributions 155 55
Closing balance April 30 2,752 2,590
Company Corp. id. no. Domicile No. of shares
Interest,
%
Carrying
amount,
SEK M
Elekta Instrument AB 556492-0949 Stockholm, Sweden 1,000,000 100.0 50
Leksell Institute AB 556942-6314 Stockholm, Sweden 50,000 100.0 0
Elekta Solutions AB 559157-5286 Stockholm, Sweden 50,000 100.0 200
Global Medical Investments GMI AB 556786-4375 Stockholm, Sweden 32,100,000 100.0 7
Elekta KK 65 820 Tokyo, Japan 2,000 100.0 36
Elekta Holding Limited 2699176 Crawley, England 22,810,695 100.0 494
Elekta Holdings US Inc. 58-1876545 Norcross, USA 6,020 100.0 432
Elekta Ltd. R889657862 Montreal, Canada 1 100.0 229
Elekta Asia Ltd 502 493 Hong Kong, S.A.R. 81,022,160 100.0 13
Elekta Instrument (Shanghai) Ltd 310115764250077 Shanghai, China 1 100.0 50
Elekta BMEI (Beijing) Medical Equipment Co., Ltd. 91110114400615135X Beijing, China 1 80.0 230
Elekta China Investment Co., Ltd 91310115MA1K47TB2R Shanghai, China 1 100.0 135
Elekta Pty Limited ACN 109 006 966 Sydney, Australia 1 100.0 1
Elekta Medical System India Private Limited U33112DL2005PTC139794 New Delhi, India 10,000 99.0 31
Elekta SA B 414 404 913 Paris, France 2,493 100.0 4
Elekta Medical SA A-818 867 31 Madrid, Spain 10,000 100.0 3
Elekta GmbH HRB 63500 Hamburg, Germany 1 100.0 0
Elekta GmbH FN 166018w Innsbruck, Austria 1 100.0 3
Elekta Hellas EPE 998 569 196 Atens, Greece 600 100.0 0
Elekta S.A./N.V. HRB 613 484 Zaventem, Belgium 250 100.0 1
Elekta BV 17 097 384 Best, The Netherlands 40 100.0 0
Elekta S.p.A. 02723670960 Agrate Brianza (MI), Italy 500,000 100.0 66
Elekta Medical Systems Comercio e Servicos para
Radioterapia Ltda CNPJ 09.528.196/0001-66 Sao Paolo, Brazil 1 100.0 73
Elekta (Pty) Ltd 2000/018814/07 Pretoria, South Africa 1 100.0 0
Elekta Pte Ltd 20090927AZ Singapore, Singapore 10,000 100.0 0
Elekta Limited, South Korea 1311111-0259 Seongnam-si, South Korea 473,879 100.0 16
Elekta Services S.R.O 292 80 095 Brno, Chech Republic 1 100.0 0
Elekta Medikal Sistemler Ticaret A.S. 196757 Istanbul, Turkey 87,900,000 100.0 87
Elekta Medical SA de CV EME140919G49 Mexiko City, Mexico 50 100.0 57
Elekta sp.Z.O.O KRS 0000538192 Warszaw, Poland 2,000 100.0 104
Elekta Company Limited 106810452 Hanoi, Vietnam 1 100.0 2
Elekta Business Services sp.Z.O.O KRS 000567549 Warszaw, Poland 1 100.0 1
Elekta SARL Algeria 16236978051 Dely Ibrahim, Algeria 1 100.0 0
Elekta LLC 1167746799637 Moscow, Russian federation 1 100.0 11
RRTS Unipessoal LDA 514185155 Lisbon, Portugal 1 100.0 13
Elekta General Trading LLC 158410 Cairo, Egypt 310,000 50.0 14
Kaiku Health Oy 2505458-2 Helsinki, Finland 716,944 100.0 381
Elekta Medical Systems SRL J40/9054/2021 Bucharest, Romania 20 100.0 1
Elekta Philippines Inc 2021110032534-01 Makati City, Philippines 250,000 100.0 5
PT Elekta Medical Solutions 1281002451394 Jakarta, Indonesia 2,500 49.0 2
Total 2 752
Note 20
Shares in associated companies
Accounting principles
Associates are companies which are not subsidiaries but in
which the Group has a signicant, but not controlling, interest.
This normally means companies in which the holding rep-
resents more than 20 percent but less than 50 percent of the
voting rights. Associated companies are reported by use of the
equity method. Holdings in associated companies are initially
recognized at cost in the consolidated balance sheet. The car-
rying amount is adjusted for the share of associated compa-
nies earnings after the acquisition date. Dividends from associ-
ated companies are reported as a reduction of the carrying
amount. Income from participations in associated companies
is a separate line in the income statement.
NOTES FINANCIAL REPORTING
137
ELEKTA ANNUAL REPORT 2021/22
Shares in associated companies
Group Parent Company
SEK M April 30, 2022 April 30, 2021 April 30, 2022 April 30, 2021
Opening balance May 1 27 34 13 6
Investments
1)
– 7 – 7
Participations in income of associated companies (Note 12) 5 –7 – –
Dividends –4 –1 – –
Reclassication –7 – –7 –
Translation dierences 4 –6 – –
Closing balance April 30 25 27 6 13
1)
Previous year, of which SEK 7 M relates to loan conversion to associated company.
Inventories
Group
SEK M April 30, 2022 April 30, 2021
Components 290 231
Work in progress 95 97
Finished goods 2,147 1,955
Total 2,533 2,283
Write-down of inventories during the year amounted to
SEK 59M (64). In the income statement this is reported as
costof product sold.
Note 23
Accounts receivable and contract assets
Estimates and assessment
Accounts receivable is one of the most signicant items in the
balance sheet and is carried at nominal value net after provi-
sions for bad debts. Accounts receivable amounted to
SEK 3,647 M (3,281) including expected credit losses of
SEK 98 M (146). See
Note 2 for further information regarding
the credit risk in accounts receivable. See
Note 3 for
accounting principles. From 1 May 2018 Elekta applies the sim-
plied approach for measuring expected credit losses for
accounts receivables and contract assets, in accordance with
IFRS 9. For all account receivables overdue more than 90 days
and with a value of more than SEK 1 M an individual evaluation
is made and when necessary a specic provision is applied. For
all non-due and overdue receivables not covered by a specic
provision a general provision is calculated based on region and
aging. The general provision is calculated as a percentage of
the receivable and the percentage used is based on historical
loss experience, current conditions and forward-looking eco-
nomic conditions for each region. As of April 30, 2022, the gen-
eral provision is SEK 58 M and the specic provision amounted
to SEK 40 M. Final write o of a receivable is done when no fur-
ther actions are taken to collect on the receivable and proba-
bility of collection is deemed to be unlikely, e.g. bankruptcy.
The contract asset relates to unbilled work in progress and
are considered to have the same risk characteristics as nondue
accounts receivables. An individual evaluation is made for
contract assets over 180 days and with a value of more than
SEK 5M.
Contract assets amounted to SEK 1,796 M (1,772) including
expected credit losses of SEK 16 M (1).
Note 21
Other nancial assets
Group Parent Company
SEK M
April 30,
2022
April 30,
2021
April 30,
2022
April 30,
2021
Participations in other companies 15 60 14 58
Derivative nancial instruments 24 24 – –
Loan receivables 12 12 – –
Contractual receivables 500 373 – –
Other non-current receivables 40 38 23 23
Total 590 506 38 81
The table below presents detailed information regarding the
Group’s participations in other companies.
Participations in other companies
Group Parent Company
SEK M
April 30,
2022
April 30,
2021
April 30,
2022
April 30,
2021
Opening balance May 1 60 297 58 293
Revaluation through other
comprehensive income –2 206 – –
Revaluation – – – 107
Divestments & write-downs –43 –443 –43 –343
Closing balance April 30 15 60 14 58
Note 22
Inventories
Accounting principles
Inventories are valued in accordance with the ’rst in, rst out’
principle at the lower of cost and net realizable value. Internal
prots arising from deliveries between Group companies are
eliminated upon consolidation.
NOTE 20 Shares in associated companies, cont.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
138
Credit risk analysis of accounts receivable
Group
April 30, 2022 April 30, 2021
SEK M Gross
Provi-
sion Total Gross
Provi-
sion Total
Not due 2,173 –5 2,168 2,133 –4 2,128
Overdue
1–30 days 547 –1 546 337 0 337
Overdue
31–60 days 205 –1 203 161 –1 160
Overdue
61–90 days 139 –3 136 75 –2 73
Overdue >
90 days 682 –88 594 720 –138 582
Total accounts
receivables, net 3,745 –98 3,647 3,426 –146 3,281
2021/22
2020/21
SEK M
0
500
1,000
1,500
2,000
2,500
Over-
due
> 90
days
Over-
due
61–90
days
Over-
due
31–50
days
Over-
due
1–30
days
Not
due
Provision for bad debt accounts receivable
Group
SEK M 2021/22 2020/21
Opening balance May 1 –146 –198
Acquired companies 1 –
Provisions –91 –78
Reversals 84 83
Realized loss 67 39
Translation dierences –13 9
Closing balance April 30 –98 –146
Provision for bad debt contract assets
Group
SEK M 2021/22 2020/21
Opening balance May 1 –1 –1
Provisions –16 –1
Reversals 1 1
Closing balance April 30 –16 –1
Note 24
Other current receivables
Group
SEK M April 30, 2022 April 30, 2021
Prepayments to suppliers 84 87
Other receivables
1)
688 582
Prepaid expenses 709 447
Total 1,481 1,116
1)
Mainly value added tax.
Parent Company
SEK M April 30, 2022 April 30, 2021
Derivative nancial instruments (Note 2) 14 7
Current tax assets 17 17
Other receivables 3 4
Prepaid expenses 8 11
Total 42 39
Note 25
Cash and cash equivalents
and short-term investments
Cash and cash equivalents and short term investments only
contains investments that redily can be converted to a known
amount of cash and are subject to an insignicant risk of
changes in value. All the investments presented as cash equiv-
alents are only held for a short maturity of maximum three
months.
Group Parent Company
SEK M
April 30,
2022
April 30,
2021
April 30,
2022
April 30,
2021
Current investments
classied as cash
equivalents
1)
3 792 3 792
Cash and bank 3,074 3,619 1,860 2,629
Total 3,077 4,411 1,863 3,421
1)
Refers to short-term interest-bearing funds with a high credit rating
Available cash and cash equivalents and short-term invest-
ments amounted to SEK 3,077 M (4,411) which is cash and
cashequivalents and short-term investments reduced by
bankbalances included in assets pledged. See
Note 32.
NOTE 23 Accounts receivable and contract assets, cont.
NOTES FINANCIAL REPORTING
139
ELEKTA ANNUAL REPORT 2021/22
Note 26
Equity
Number of shares in Elekta AB (publ) A-shares B-shares Total Share capital
Number of shares May 1, 2020 14,980,769 368,587,640 383,568,409 191,784,205
Number of shares April 30, 2021 14,980,769 368,587,640 383,568,409 191,784,205
of which treasury shares – 1,485,289 1,485,289
Number of shares May 1, 2021 14,980,769 368,587,640 383,568,409 191,784,205
Number of shares April 30, 2022 14,980,769 368,587,640 383,568,409 191,784,205
of which treasury shares – 1,485,289 1,485,289
Appropriation of prot
Amount to be paid to the shareholders SEK 916,999,488
Amount to be carried forward by the
Parent Company SEK 1,103,170,921
Total non-restricted equity of
the Parent Company SEK 2,020,170,409
All shares have a par value of SEK 0.50 and provide the holders
with equal rights to the Company’s assets and earnings. All
shares are entitled to dividends subsequently issued. One series
A-share entitles the holder to 10 votes and one series B-share to
one vote. In accordance with section 12 of the articles of asso-
ciation, series A-shares are subject to right of rst refusal. All
series A-shares are currently owned by Laurent Leksell via
Note 27
Interest-bearing liabilities
Group Parent Company
SEK M
April 30,
2022
April 30,
2021
April 30,
2022
April 30,
2021
Bond loan 2,995 2,497 2,995 2,497
Liabilities to credit
institutions 1,614 2,687 1,604 2,687
Liabilities to
subsidiaries – – 2,482 3,858
Lease liabilities 1,086 1,054 – –
Total 5,695 6,239 7,081 9,042
Maturity term structure,
external loans
<1 year 510 2,141 500 2,141
>1 year–<3 years 999 499 999 499
>3 years–<5 years 2,751 997 2,751 997
>5 years 349 1,547 349 1,547
Total 4,609 5,184 4,599 5,184
company. The dividend paid out during the nancial year
amounted to a total sum of SEK 841 M, corresponding to
SEK 2.20 per share. At the AGM on August 25, 2022, a dividend
of SEK 2.40 per share for the year 2021/22 – a total sum of
approximately SEK 917 M will be proposed. The average number
of shares before and after dilution during the year, rounded to
the nearest thousand, was 382,083 thousand (382,083). The
number of repurchased shares on April 30, 2022, totaled
1,485,289 B-shares (1,485,289). The share program awarded
toemployees have a potential dilution eect. Certain perfor-
mance targets must be met for dilution to occur and this was
not the case at the closing date.
For more information on the Elekta share, see
page 41.
Specication by currency
Liability amount SEK M
Currency
April 30,
2022
April 30,
2021
April 30,
2022
April 30,
2021
Swedish kronor, SEK M 3,505 5,296 3,494 3,297
US dollar, USD M 1 100 10 419
British Pound, GBP M 90 143 1,104 1,469
Chinese Yuan, CNY M – 42 – –
Total 4,609 5,184
Fixed interest term including
eects of derivatives
April 30, 2022 April 30, 2021
< 1 year 505 4,346
> 1 year < 3 years 1,000 –
> 3 year < 5 years 2,754 –
> 5 years 349 838
Total 4,609 5,184
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
140
Note 28
Provisions
Accounting principles
Provisions
Provisions are reported when the Group has, or is considered to
have, an obligation resulting from an event that has occurred
and for which payments are likely to meet the obligation. A
further condition is that it is possible to make a reliable esti-
mate of the amount to be paid.
Pensions
Pensions are reported either as dened contribution plans or as
dened benet plans. Most of Elekta’s pension commitments
are met through ongoing payments to authorities or other
independent organizations that administer the pension plans.
For these dened contribution pension plans, a pension cost
is reported on a continuous basis as the benets are earned,
which normally coincides with the date on which the fees
are paid.
Elekta has dened benet pension plans for certain
employees in a few countries. Independent actuaries calculate
the magnitude of the obligations in each plan and revalue the
obligations of the pension plans each year. The pension costs
are estimated using the so-called projected unit credit method
in a way that distributes the costs over the employee’s working
life. These obligations are valued at the present value of the
expected future payments. Actuarial gains and losses are
reported in other comprehensive income in the period during
which they arise.
Warranty provisions
Estimated costs for product guarantees are charged against
operating costs in conjunction with the income recognition
of the products. The estimated costs are established using
historic statistics, with known changes taken into account
regarding product quality, repair costs etcetera.
Estimates and assessment
Provisions include uncertainties and entails various judgments.
Provisions for guarantees are based on historic statistics, while
others, such as provisions for legal disputes and restructuring
are based on management’s best estimate of the expected
outcome. A provision is only reported when an event has
occurred for which economic responsibility is probable and
when it is possible to make a reliable estimate of the amount
to be paid. Total provisions amounted to SEK 364 M (398).
Provisions
Group Parent Company
SEK M
April 30,
2022
April 30,
2021
April 30,
2022
April 30,
2021
Restructuring reserve 4 7 – 4
Warranty provisions 105 108 – –
Other provisions 39 60 – 0
Short-term provisions 149 174 – 4
Provision for pensions 123 146 – –
Other provisions 92 78 13 36
Long-term provisions 215 224 13 36
Pension plans
Elekta has dened benet pension plans for certain employees
in a few countries; mainly Japan, Netherlands, Italy and
Germany. Most common is however dened contribution
plans. Total pension costs for the Group amounted to
SEK294 M (215) of which SEK 23 M (19) relate to dened
benet pension plans, see
Note 7.
Pension costs, dened
benet pension plans
Group
SEK M April 30, 2022 April 30, 2021
Current service cost –23 –19
Interest on obligation –3 –3
Interest income 2 2
Past service costs and gains/losses
on settlements 1 –1
Actuarial loss/gain 27 –3
Total cost of dened benet
pension plans before tax 3 –25
whereof reported in:
the income statement –23 –22
other comprehensive income 27 –3
Dened benet pension plans
Group
SEK M April 30, 2022 April 30, 2021
Dened benet obligation,
funded plans 157 186
Fair value of plan assets –138 –155
Provision for pensions,
funded plans 19 31
Dened benet obligation,
unfunded plans 103 115
Provision for pensions,
unfunded plans 103 115
Pension provision for dened benet
plans, net 123 146
NOTES FINANCIAL REPORTING
141
ELEKTA ANNUAL REPORT 2021/22
Plan assets in %
Group
SEK M April 30, 2022 April 30, 2021
Assets held by insurance company 93% 96%
Other 7% 4%
100% 100%
Discount rate
The discount rate reects the estimated timing of benet pay-
ments and is used for measuring the present value of the obli-
gation. A uctuation in the discount rate will have material
eect on the pension obligation but will also impact the inter-
est income and expense reported in the nance net. To deter-
mine the discount rate, AA-rated corporate bonds indexes
matching the duration of the pension obligations are applied
in most countries.
Key assumptions used in the valuation of
the pension liability (weighted average)
Group
April 30, 2022 April 30, 2021
Discount rate used, % 2.0 1.0
Future salary increase, % 1.8 1.9
Ination, % 2.1 0.9
Sensitivity analysis of the most important
assump-
tions aecting the recognized
pension liability
Group April 30, 2022 April 30, 2021
Discount rate +0.5% –7,9% –8,8%
Discount rate –0.5% 9,2% 10,1%
Salary increase rate +0.5% 1,8% 1,5%
Salary increase rate –0.5% –1,7% –1,5%
Ination, +0,5% 1,9% 2,1%
Ination, –0,5% –2,1% –2,0%
NOTE 28 Provisions, cont.
Movement in provision for pensions
April 30, 2022 April 30, 2021
SEK M
Present value
of obligation
Fair value of
plan assets Net
Present value
of obligation
Fair value of
plan assets Net
Opening balance 301 –155 146 317 –142 175
Current service cost 21 2 23 18 2 19
Past service costs and gains/losses on settlements –1 – –1 1 – 1
Interest expenses /income 3 –2 1 3 –2 1
324 –155 169 338 –142 197
Actuarial gains/losses attributable to:
Return on plan assets – 36 36 – –4 –4
Changes in nancial assumptions –57 – –57 7 – 7
Changes in demographic assumptions – – – –4 – –4
Experience assumptions –6 – –6 5 – 5
Transfers – – – –13 – –13
Contributions by employers – –17 –17 – –18 –18
Contributions by employees 1 –1 – 1 –1 –
Benet payments –7 2 –5 –10 2 –9
Exchange rate dierences 4 –3 1 –22 7 –15
Closing balance 261 –138 123 301 –155 146
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
142
NOTE 28 Provisions, cont.
Note 29
Customer contract related
balances and order backlog
Group
SEK M April 30, 2022 April 30, 2021
Contract assets
Income not invoiced 1,812 1,773
Doubtful income not invoiced –16 –1
Total 1,796 1,772
Contract liabilities
Advances from customer 4,161 3,759
Prepaid service income 2,114 1,995
Other prepaid income 228 88
Total 6,503 5,842
Revenue recognized in the period
Group
SEK M 2021/22 2020/21
Revenue recognized in the year relating
to the opening balance of the contract
liability balance 4,417 4,277
Order backlog was SEK 39,656 M, compared to SEK 33,293 M
on April 30, 2022. Order backlog is converted at closing
exchange rates which resulted in a negative translation dier-
ence of SEK 3,524 M. According to current delivery plans, cur-
rent order backlog is expected to be recognized as follows:
approximately 35 percent in 2021/22, 30 percent in 2022/23
and 35 percent thereafter.
Note 30
Accrued expenses
Group
SEK M April 30, 2022 April 30, 2021
Reserve for additional project costs 644 548
Accrued commission costs 50 121
Accrued vacation pay 256 194
Accrued social costs 94 86
Accrued interest expenses 10 18
Accrued bonus costs 360 298
Accrued expenses GRNI
1)
90 104
Other items 397 468
Total 1,901 1,837
1)
Includes liabilities for goods received where the related invoice has
not yet been received.
Note 31
Other current liabilities
Group
SEK M April 30, 2022 April 30, 2021
Value added tax 318 439
Personnel taxes 28 25
Other personnel related liabilities 8 7
Contingent consideration 24 55
Other items 51 32
Total 429 559
Parent Company
SEK M April 30, 2022 April 30, 2021
Accounts payable 4 8
Accrued expenses (see below) 41 49
Derivative nancial instruments 34 15
Other liabilities 2 64
Total 81 137
Accrued expenses
Accrued vacation pay liability 7 8
Accrued social costs 3 3
Accrued interest expenses 9 18
Other items 22 20
Total 41 49
Movement in provisions
Group Parent Company
SEK M
Restructuring
reserve
Warranty
provisions
Other
provisions
Restructuring
reserve
Other
provisions
Opening balance May 1, 2020 2 101 135 0 10
Provisions 31 157 37 26 26
Reversals 0 –77 –30 – –1
Provisions utilized during the year –26 –67 0 –23 –
Other – 4 – – –
Translation dierences 0 –10 –4 – –
Closing balance April 30, 2021 7 108 138 4 36
Opening balance May 1, 2021 7 108 138 4 36
Provisions 7 135 49 – –
Reversals –1 –88 –6 – –23
Provisions utilized during the year –8 –59 –52 –4 –
Other – 2 – – –
Translation dierences 0 7 3 – –
Closing balance April 30, 2022 4 105 132 – 13
NOTES FINANCIAL REPORTING
143
ELEKTA ANNUAL REPORT 2021/22
Note 34
Cash ow statement
Group Parent Company
SEK M 2021/22 2020/21 2021/22 2020/21
Interest net
Interest income –42 –30 –138 –154
Interest expenses 148 233 114 191
Total 106 204 –24 37
Other non-cash items
Participations in net income of associated companies, after tax –5 7 – –
Revaluation of participations in other companies – 2 43 –206
Cost of incentive programs 17 12 5 3
Anticipated group contributions – – –20 –
Unrealized exchange rate eects –183 291 1 29
Other items –41 –5 –31 39
Total –211 307 –2 –135
Business combinations
Purchase price –152 –274 – –235
Contingent considerations –42 –47 – –
Unpaid part of purchase price 18 49 – –
Total –175 –272 – –235
Other investing activities
Shareholders’ contributions paid – – –155 –55
Dividends from associated companies 4 1 – –
Divestments of other shares – 443 – 443
Investments in short term investments –69 – – –
Divestments of short term investments – 60 – –
Total –65 504 –155 388
More information on business combinations is presented in
Note 36.
Changes in net liabilities related to nancing activities 2021/22
Non-cash changes
SEK M Opening balance Cash ow Other
Foreign exchange
movements Closing balance
Bond loans 2,497 496 – – 2,993
Leases liabilities 1,054 –228 169 91 1,086
Liabilities to credit institutes 2,687 –1,163 – 78 1,603
Other – 9 – – 9
Total 6,239 –886 169 169 5,692
Note 32
Assets pledged
Group
SEK M April 30, 2022 April 30, 2021
Bank balances 8 8
Total 8 8
Collateral pledged for contingent liabilities.
Note 33
Contingent liabilities
Group Parent Company
SEK M
April 30,
2022
April 30,
2021
April 30,
2022
April 30,
2021
Guarantees 1,562 1,535 767 633
Total 1,562 1,535 767 633
For the group the guarantees consist of mainly bid bonds.
For the Parent Company the guarantees consist of mainly
performance guarantees and advance payments guarantees.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
144
NOTE 34 Cash ow statement, cont.
Note 35
Related party transactions
Transactions between Elekta AB and its subsidiaries are shown
in
Notes 11, 12, 13 and 27. These transactions are eliminated
upon consolidation. Sales to associated companies amounted
to SEK 22 M (34), receivables from associated companies
amounted to SEK 31 M (27) and costs related to associated
companies amounted to SEK 9 M (12).
None of the board members or any of the senior executives
has, or has had, any direct or indirect involvement in any busi-
ness transactions between themselves and Elekta. In addition
to this, no other transactions with related parties have
occurred. Remunerations and benets to key personnel in
management positions are presented in
Note 7.
Note 36
Business combinations
2021/22
During 2021/22 Elekta has made some minor acquisitions to
atotal preliminary xed acquisition price of approximately
SEK 150 M with a maximum variable amount of approximately
SEK 3 M. The acquisitions made during the year consists of one
share acquisition and several small asset acquisitions.
The achievement goals for the variable acquisition price
related to Kaiku Health Oy that was acquired in May 2020,
hasnot been fullled, and has been reversed during the year.
2020/21
On May 19, 2020 Elekta acquired 100% of shares in Kaiku Health
Oy to further develop its focus on cancer care providers and
their patients through its acquisition of Kaiku Health. The pre-
liminary acquisition price consisted of a xed amount of
approximately SEK 230 M and a maximum variable amount of
approximately SEK 50 M, which is depending on the achieve-
ment of goals set-up for the transferred business. Since the
acquisition date, the acquisition of Kaiku Health Oy has had
animpact of SEK 19 M on consolidated net sales and SEK –40 M
on net income. The dierence in impact on the Group’s consol-
idated net sales and net income, compared to if the acquisi-
tion had been consolidated from May 1, 2020, is insignicant.
The goodwill recorded of SEK 228 M from the acquisition is
attributable to the value of the skills within the company in
terms of its capability to develop new digital health interven-
tions for cancer patient The Finnish company is best known for
its app that monitors patient-reported outcomes, providing
intelligent symptom tracking and management for healthcare
providers in routine oncology care and studies. The Kaiku
Health app screens for patients’ symptoms, noties the care
team on their development and provides value-based person-
alized support for patients. It is easily implemented into exist-
ing hospital information systems and can be integrated with
Elekta’s MOSAIQ
®
Oncology Information System (OIS). This
makes Kaiku Health a valuable tool for healthcare teams to
collate patient-recorded feedback and act immediately if
anything unusual is reported.
Changes in net liabilities related to nancing activities 2020/21
Non-cash changes
SEK M Opening balance Cash ow Other
Foreign exchange
movements Closing balance
Bond loans 2,496 – 1 – 2,497
Leases liabilities 1,256 –215 121 –109 1,054
Liabilities to credit institutes 5,606 –2,703 –5 –211 2,687
Total 9,358 –2,918 117 –320 6,239
NOTES FINANCIAL REPORTING
145
ELEKTA ANNUAL REPORT 2021/22
Note 38
Signicant events after the reporting period
No signicant events have occured subsequent to the balance sheet
date that would have a material impact on the Elekta Group’s nancial
statements.
Note 37
Average number of employees
Men Women Total
2021/22 2020/21 2021/22 2020/21 2021/22 2020/21
Parent Company 23 26 34 19 57 45
Subsidiaries:
Sweden 177 152 105 89 282 241
USA 626 597 297 278 924 875
United Kingdom 619 553 202 184 822 736
China 520 484 210 220 730 704
The Netherlands 177 164 57 51 234 214
Poland 92 130 129 58 222 188
Germany 92 86 17 17 109 102
Japan 106 105 22 23 128 127
India 118 120 10 0 128 120
Canada 75 74 27 25 102 99
Italy 63 60 19 17 82 77
France 62 57 15 15 77 72
Australia 61 54 21 19 82 73
Brazil 47 47 16 14 63 62
Spain 44 41 11 7 55 48
Hong Kong 38 35 13 16 51 51
Turkey 54 42 21 17 75 59
Finland 75 48 27 16 102 64
Mexico 34 30 8 8 42 38
South Korea 26 23 2 3 28 26
Singapore 20 18 13 9 33 28
Austria 15 15 3 3 18 18
Russia 15 16 8 6 23 22
Philipines 3 – 2 – 5 –
South Africa 12 14 5 4 17 18
Romania 2 – 0 – 2 –
Indonesia 13 – 2 – 15 –
Belgium 13 10 2 2 15 12
Greece 12 10 3 2 15 12
Czech Republic 6 6 5 4 11 10
Portugal 11 10 3 2 14 12
New Zealand (branch) 8 7 3 2 11 9
Algeria 8 8 1 1 9 9
Vietnam 15 12 3 1 18 12
Switzerland (branch) 5 5 2 2 7 7
Egypt 22 2 0 0 22 2
Serbia 3 3 0 0 3 3
Total average number of employees 3,312 3,062 1,319 1,132 4,631 4,194
Specication men/women among Board of Directors and executive management
During the nancial year, the Board of Directors of Elekta AB consisted of 57 percent (57) men.
The Executive Committee consisted of 86 percent (86) men.
FINANCIAL REPORTING NOTES
ELEKTA ANNUAL REPORT 2021/22
146
The Board of Directors and the President and CEO certify that
the annual nancial report has been prepared in accordance
with generally accepted accounting principles and that the
consolidated accounts have been prepared in accordance with
the international set of accounting standards referred to in
Regulation (EC) No 1606/2002 of the European Parliament and
of the Council of 19 July 2002 on the application of international
accounting standards, and give a true and fair view of the posi-
tion and prot or loss of the Parent Company and the Group,
and that the management report gives a fair review of the
development and performance of the business, position and
Stockholm July 7, 2022
Laurent Leksell
Chairman of the board
Caroline Leksell Cooke
Member of the board
Johan Malmquist
Member of the board
Wolfgang Reim
Member of the board
Jan Secher
Member of the board
Birgitta Stymne Göransson
Member of the board
Cecilia Wikström
Member of the board
Gustaf Salford
President and CEO
Our audit report was submitted on July 8, 2022
Ernst & Young AB
Rickard Andersson
Authorized Public Accountant
prot or loss of the Parent Company and the Group, and
describes the principal risks and uncertainties that the Parent
Company and the companies in the Group face.
The annual report also contains the sustainability report in
accordance with the Swedish Annual Accounts Act, Chapter 6,
Section 11, see
page 72, reporting on EU taxonomy for sus-
tainable activities in accordance with the EU Taxonomy Regu-
lation (EU 2020/852), see
page 52, and the Sustainability
Report in accordance with the Global reporting Initiative, GRI,
see the GRI Index on
page 69.
SIGNATURES OF THE BOARD FINANCIAL REPORTING
147
ELEKTA ANNUAL REPORT 2021/22
REVENUE RECOGNITION
Description How this area was taken into account in the audit
Elekta’s revenue comes from the sale of machinery, software and services.
Many of Elekta’s products and services are sold independently, while others are
part of so-called compound contracts, where equipment, software and ser-
vices are covered by a single customer agreement. Revenue for each compo-
nent in the contract (performance obligation) is recognized when the control
istransferred to the customer.
Revenue recognition depends on management’s assessments of the con-
tract terms that govern when the control for each component passes to the
buyer. Machines are installed in accordance with the installation date agreed
with the customer and it is usually at this time that the revenue for the
machine is reported. After technical approval has been received from the cus-
tomer, theremaining part of the revenue is reported attributable to software
and installation.
The transaction price, taking discounts into account, is allocated among the
various performance commitments in the contract based on estimated stand-
alone sales prices for the goods and services in the contract identied as per-
formance commitments.
Due to the inherent complexity of revenue recognition and the nature of
estimates and assessments from management, we have assessed revenue
recognition as a particularly important area of the audit.
For accounting policies and disclosures, please refer to Note 6.
In our audit, we have mapped and evaluated Elekta’s processes and controls on
revenue recognition to gain an understanding of how they work and where any
errors could occur.
Our mapping has focused on the approval of new customer agreements,
the model for allocating revenue to various components of the agreements
and the company’s controls to ensure that the revenue is accounted for in the
right period. After our mapping, we have tested thecontrols and carried out,
among other things, the following review measures:
•
Performed trend and correlation tests using computerized analytical meth-
ods in order to identify uctuations and to check that payment has been
received for reported revenue.
•
Randomly tested that revenue is accounted for in the correct period and at
the right amount
•
Reviewed a selection of new and old contracts and sales against the terms of
the contract and Elekta’s guidelines for assessing revenue recognition.
We have also examined the accounting policies and notes provided in the
annual report.
Report on the annual accounts
and consolidated accounts
Opinions
We have audited the annual accounts and consolidated accounts of
Elekta AB (publ) for the nancial year 2021-05-01 – 2022-04-30. The
annual accounts and consolidated accounts of the company are
included on
pages 94–147 in this document.
In our opinion, the annual accounts have been prepared in accor-
dance with the Annual Accounts Act and present fairly, in all mate-
rial respects, the nancial position of the parent company as of 30
April 2022 and its nancial performance and cash ow for the year
then ended in accordance with the Annual Accounts Act. The con-
solidated accounts have been prepared in accordance with the
Annual Accounts Act and present fairly, in all material respects, the
nancial position of the group as of 30 April 2022 and their nancial
performance and cash ow for the year then ended in accordance
with International Financial Reporting Standards (IFRS), as adopted
by the EU, and the Annual Accounts Act.
We therefore recommend that the general meeting of sharehold-
ers adopts the income statement and balance sheet for the parent
company and the group.
Our opinions in this report on the annual accounts and consoli-
dated accounts are consistent with the content of the additional
report that has been submitted to the parent company’s audit com-
mittee in accordance with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with International Standards
on Auditing (ISA) and generally accepted auditing standards in Swe-
den. Our responsibilities under those standards are further described
in the Auditor’s Responsibilities section. We are independent of the
parent company and the group in accordance with professional
Auditor’s report
To the general meeting of the shareholders of Elekta AB (publ) corporate identity number 556170-4015
This is a translation from the Swedish original.
ethics for accountants in Sweden and have
otherwise fullled our ethical responsibili-
ties in accordance with these requirements.
This includes that, based onthe best of our
knowledge and belief, no prohibited ser-
vices referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided to
the audited company or, where applicable,
its parent company or its controlled com-
panies within the EU.
We believe that the audit evidence we
have obtained is sucient and appropriate
to provide a basis for our opinions.
Key Audit Matters
Key audit matters of the audit are those matters that, in our profes-
sional judgment, were of most signicance in our audit of the annual
accounts and consolidated accounts of the current period. These
matters were addressed in the context of our audit of, and in forming
our opinion thereon, the annual accounts and consolidated accounts
as a whole, but we do not provide a separate opinion on these mat-
ters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have fullled the responsibilities described in the Auditor’s
responsibilities for the audit of the nancial statements section
ofour report, including in relation to these matters. Accordingly, our
audit included the performance of procedures designed to respond
to our assessment of the risks of material misstatement of the
nancial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide
thebasis for our audit opinion on the accompanying nancial
statements.
Materiality
Scope
Key
Audit
Matters
FINANCIAL REPORTING AUDITOR’S REPORT
ELEKTA ANNUAL REPORT 2021/22
148
GOODWILL
Description How our audit addresses this key audit matter
Goodwill amounts to SEK 6,499 million as of April 30, 2022 and represents a sig-
nicant proportion of Elekta’s total assets. Goodwill amounts are allocated to
the Group’s cash-generating units (CGUs).
Impairment testing of goodwill with an indenite useful life iscarried out
annually, or more frequently if there are indications of a decline in value.
When the book value exceeds the estimated recoverable amount, the asset
is impaired to the recoverable amount. The recoverable amount is the highest
of aCGU’s net realizable value and value in use,which corresponds to the dis-
counted present value of future cashows. Future cash ows are based on the
forecast approved bymanagement. The estimates are based on the nancial
budget forthe next scal year as determined by the Executive Management,
and expected future development up to ve years. As described in
Note 16, the calculations of utilization values assume that important
assumptions are made regarding, among other things, growth rates, gross
margin and discount rates.
Note 16 describes signicant assumptions used in the calculation of the
value in use. As the value in use is dependent upon these assumptions, we have
assessed valuation of goodwill as a key audit matter.
Our review has included, among other things, the following review measures;
•
Evaluation of the company’s process for establishing and conducting impair-
ment tests.
•
Review of the Company’s identication of cash-generating units (CGU)
•
Evaluation using own valuation experts regarding used valuation methods
and calculation models.
•
Assessment of the plausibility of assumptions made.
•
Conducted a sensitivity analysis of the company’s impairment test
•
Analysis of the reliability of the current year’s forecast by comparing itagainst
historical performance
•
Examination of additional information provided in the Annual Report.
Other Information than the annual accounts
and consolidated accounts
This document also contains other information than the annual
accounts and consolidated accounts and is found on
pages 1–91.
The remuneration report for nancial year 2021–2022 on
pages
92–93 also constitutes other information. The Board of Directors
and the Managing Director are responsible for this other informa-
tion.
Our opinion on the annual accounts and consolidated accounts
does not cover this other information and we do not express any
form of assurance conclusion regarding this other information.
In connection with our audit of the annual accounts and consoli-
dated accounts, our responsibility is to read the information identi-
ed above and consider whether the information is materially incon-
sistent with the annual accounts and consolidated accounts. In this
procedure we also take into account our knowledge otherwise
obtained in the audit and assess whether the information otherwise
appears to be materially misstated.
If we, based on the work performed concerning this information,
conclude that there is a material misstatement of this other infor-
mation, we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director are responsible for
the preparation of the annual accounts and consolidated accounts
and that they give a fair presentation in accordance with the Annual
Accounts Act and, concerning the consolidated accounts, in accor-
dance with IFRS as adopted by the EU. The Board of Directors and the
Managing Director are also responsible for such internal control as
they determine is necessary to enable the preparation of annual
accounts and consolidated accounts that are free from material
misstatement, whether due to fraud or error.
In preparing the annual accounts and consolidated accounts,
TheBoard of Directors and the Managing Director are responsible
for the assessment of the company’s and the group’s ability to con-
tinue as a going concern. They disclose, as applicable, matters
related to going concern and using the going concern basis of
accounting. The going concern basis of accounting is however not
applied if the Board of Directors and the Managing Director intends
to liquidate the company, to cease operations, or has no realistic
alternative but to do so.
The Audit Committee shall, without prejudice to the Board of
Director’s responsibilities and tasks in general, among other things
oversee the company’s nancial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether
the annual accounts and consolidated accounts as awhole are free
from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinions. Reasonable
assurance is a high level of assurance, but is not a guarantee that
anaudit conducted in accordance with ISAs and generally accept-
edauditing standards in Sweden will always detect a material
misstatement when it exists. Misstatements can arise from fraud
orerror and are considered material if, individually or in the aggre-
gate, they could reasonably be expected to inuence the economic
decisions of users taken on the basis of these annual accounts and
consolidated accounts.
As part of an audit in accordance with ISAs, we exercise profes-
sional judgment and maintain professional scepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the
annual accounts and consolidated accounts, whether due to
fraud or error, design and perform audit procedures responsive
tothose risks, and obtain audit evidence that is sucient and
appropriate to provide a basis for our opinions. The risk of not
detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, orthe override
of internal control.
• Obtain an understanding of the company’s internal control rele-
vant to our audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the eectiveness of the company’s
internal control.
AUDITOR’S REPORT FINANCIAL REPORTING
149
ELEKTA ANNUAL REPORT 2021/22
• Evaluate the appropriateness of accounting policies used
andthe reasonableness of accounting estimates and related
disclosures made by the Board of Directors and the Managing
Director.
• Conclude on the appropriateness of the Board of Directors’
and the Managing Director’s use of the going concern basis of
accounting in preparing the annual accounts and consolidated
accounts. We also draw a conclusion, based on the audit evi-
dence obtained, as to whether any material uncertainty exists
related to events or conditions that may cast signicant doubt
on the company’s and the group’s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report
to the related disclosures in the annual accounts and consoli-
dated accounts or, if such disclosures are inadequate, to mod-
ify our opinion about the annual accounts and consolidated
accounts. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future
events or conditions may cause a company and a group to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
annual accounts and consolidated accounts, including the dis-
closures, and whether the annual accounts and consolidated
accounts represent the underlying transactions and events in
amanner that achieves fair presentation.
• Obtain sucient and appropriate audit evidence regarding the
nancial information of the entities or business activities within
the group to express an opinion on the consolidated accounts.
We are responsible for the direction, supervision and perfor-
mance of the group audit. We remain solely responsible for
ouropinions.
We must inform the Board of Directors of, among other matters,
the planned scope and timing of the audit. We must also inform
ofsignicant audit ndings during our audit, including any signi-
cant deciencies in internal control that we identied.
We must also provide the Board of Directors with a statement
that we have complied with relevant ethical requirements regard-
ing independence, and to communicate with them all relation-
ships and other matters that may reasonably be thought to bear
on our independence, and where applicable, actions taken to
eliminate threats or related safeguards applied.
From the matters communicated with the Board of Directors,
we determine those matters that were of most signicance in the
audit of the annual accounts and consolidated accounts, includ-
ing the most important assessed risks for material misstatement,
and are therefore the key audit matters. We describe these mat-
ters in the auditor’s report unless law or regulation precludes
disclosure about the matter.
Report on other legal and regulatory requirements
Report on the audit of the administration and the
proposed appropriations of the company’s prot or loss
Opinions
In addition to our audit of the annual accounts and consolidated
accounts, we have also audited the administration of the Board of
Directors and the Managing Director of ABC AB (publ) for the year
2021-05-01 – 2022-04-30 and the proposed appropriations of the
company’s prot or loss.
We recommend to the general meeting of shareholders that
theprot be appropriated (loss be dealt with) in accordance with
the proposal in the statutory administration report and that the
members of the Board of Directors and the Managing Director
bedischarged from liability for the nancial year.
Basis for Opinions
We conducted the audit in accordance with generally accepted
auditing standards in Sweden. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities
section. We are independent of the parent company and the
group in accordance with professional ethics for accountants in
Sweden and have otherwise fullled our ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have obtained is su-
cient and appropriate to provide a basis for our opinions.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors is responsible for the proposal for appropri-
ations of the company’s prot or loss. At the proposal of a divi-
dend, this includes an assessment of whether the dividend is justi-
able considering the requirements which the company’s and the
group’s type of operations, size and risks place on the size of the
parent company’s and the group’s equity, consolidation require-
ments, liquidity and position in general.
The Board of Directors is responsible for the company’s organi-
zation and the administration of the company’s aairs. This
includes among other things continuous assessment of the com-
pany’s and the group’s nancial situation and ensuring that the
company’s organization is designed so that the accounting, man-
agement of assets and the company’s nancial aairs otherwise
are controlled in a reassuring manner. The Managing Director shall
manage the ongoing administration according to the Board of
Directors’ guidelines and instructions and among other matters
take measures that are necessary to fulll the company’s account-
ing in accordance with law and handle the management of assets
in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and
thereby our opinion about discharge from liability, is to obtain
audit evidence to assess with a reasonable degree of assurance
whether any member of the Board of Directors or the Managing
Director in any material respect:
• has undertaken any action or been guilty of any omission
which can give rise to liability to the company, or
• in any other way has acted in contravention of the Companies
Act, the Annual Accounts Act or the Articles ofAssociation.
Our objective concerning the audit of the proposed appropriations
of the company’s prot or loss, and thereby our opinion about this,
is to assess with reasonable degree of assurance whether the pro-
posal is in accordance with the Companies Act.
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with generally
accepted auditing standards in Sweden will always detect actions
or omissions that can give rise to liability to the company, or that
the proposed appropriations of the company’s prot or loss are
not in accordance with the Companies Act.
As part of an audit in accordance with generally accepted
auditing standards in Sweden, we exercise professional judgment
and maintain professional scepticism throughout the audit. The
FINANCIAL REPORTING AUDITOR’S REPORT
ELEKTA ANNUAL REPORT 2021/22
150
1)
This is a translation of the original auditors’ report in Swedish. In the event
ofany dierences between the translation and the original statement in
Swedish, the Swedish version shall prevail.
examination of the administration and the proposed appropria-
tions of the company’s prot or loss is based primarily on the audit
of the accounts. Additional audit procedures performed are based
on our professional judgment with starting point in risk and mate-
riality. This means that we focus the examination on such actions,
areas and relationships that are material for the operations and
where deviations and violations would have particular importance
for the company’s situation. We examine and test decisions under-
taken, support for decisions, actions taken and other circum-
stances that are relevant to our opinion concerning discharge from
liability. As a basis for our statement on the Board’s proposal for
appropriation of the company’s prot or loss, we have reviewed
the Board’s reasoned opinion and a selection of the supporting
documents for this in order to assess whether the proposal is
compatible with the Swedish Companies Act.
The auditor’s examination of the ESEF report
Opinion
In addition to our audit of the annual accounts and consoli-
dated accounts, we have also examined that the Board of
Directors and the Managing Director have prepared the annual
accounts and consolidated accounts in a format that enables
uniform electronic reporting (the Esef report) pursuant to
Chapter 16, Section 4(a) of the Swedish Securities Market Act
(2007:528) for Elekta AB for the nancial year 2021-05-01 –
2022-04-30.
Our examination and our opinion relate only to the statutory
requirements.
In our opinion, the ESEF report #[checksum] has been prepared
in a format that, in all material respects, enables uniform elec-
tronic reporting.
Basis for opinion
We have performed the examination in accordance with FAR’s
recommendation RevR 18
Examination of the ESEF report
. Our
responsibility under this recommendation is described in more
detail in the
Auditors’ responsibility
section. We are indepen-
dent of Elekta AB in accordance with professional ethics for
accountants in Sweden and have otherwise fullled our ethical
responsibilities in accordance with these requirements.
We believe that the evidence we have obtained is sucient and
appropriate to provide a basis for our opinion.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director are responsi-
ble for the preparation of the Esef report in accordance with
Chapter 16, Section 4(a) of the Swedish Securities Market Act
(2007:528), and for such internal control that the Board of
Directors and the Managing Director determine is necessary
toprepare the Esef report without material misstatements,
whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assurance whether
the Esef report is in all material respects prepared in a format
that meets the requirements of Chapter 16, Section 4(a) of the
Swedish Securities Market Act (2007:528), based on the proce-
dures performed.
RevR 18 requires us to plan and execute procedures to achieve
reasonable assurance that the Esef report is prepared in a format
that meets these requirements.
Reasonable assurance is a high level of assurance, but it is not a
guarantee that an engagement carried out according to RevR 18
and generally accepted auditing standards in Sweden will always
detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to inuence
the economic decisions of users taken on the basis of the Esef
report.
The audit rm applies ISQC 1
Quality Control for Firms that Per-
form Audits and Reviews of Financial Statements, and other
Assurance and Related Services Engagements
and accordingly
maintains a comprehensive system of quality control, including
documented policies and procedures regarding compliance with
professional ethical requirements, professional standards and
legal and regulatory requirements.
The examination involves obtaining evidence, through various
procedures, that the Esef report has been prepared in a format
that enables uniform electronic reporting of the annual and con-
solidated accounts. The procedures selected depend on the audi-
tor’s judgment, including the assessment of the risks of material
misstatement in the report, whether due to fraud or error. In carry-
ing out this risk assessment, and in order to design audit proce-
dures that are appropriate in the circumstances, the auditor con-
siders those elements of internal control that are relevant to the
preparation of the Esef report by the Board of Directors and the
Managing Director, but not for the purpose of expressing an opin-
ion on the eectiveness of those internal controls. The examina-
tion also includes an evaluation of the appropriateness and rea-
sonableness of assumptions made by the Board of Directors and
the Managing Director.
The procedures mainly include a technical validation of the Esef
report, i.e. if the le containing the Esef report meets the technical
specication set out in the Commission’s Delegated Regulation
(EU) 2019/815 and a reconciliation of the Esef report with the
audited annual accounts and consolidated accounts.
Furthermore, the procedures also include an assessment of
whether the Esef report has been marked with iXBRL which
enables a fair and complete machine-readable version of the con-
solidated statement of nancial performance, nancial position,
changes in equity and cash ow.
Ernst & Young AB was appointed auditor of Elekta AB by the
general meeting of the shareholders on 25 August 2021 and has
been the company’s auditor since the 22 August 2019.
Stockholm July 8, 2022
Ernst & Young AB
Signature on original auditors’ report in Swedish
1)
Rickard Andersson
Authorized Public Accountant
AUDITOR’S REPORT FINANCIAL REPORTING
151
ELEKTA ANNUAL REPORT 2021/22
Glossary
Adaptive radiation therapy
A treatment technique that aims to customize each patient’s
treatment plan to patient specic variation by evaluating and
characterizing the systematic and random variations through
image feedback and including them in adaptive planning.
Benign
The term benign is used when describing tumors or growths
that do not threaten the health of an individual. Benign is
theopposite of malignant.
Brachytherapy
Is also known as internal radiation therapy, involves placing
a radiation source in or near the treatment area. This allows
very high tumor doses to be achieved, while limiting the
impact on surrounding organs. The method is typically used
to treat gynecological cancer and prostate cancer, but also
breast cancer and certain types of skin cancer.
Cancer
Uncontrolled, abnormal growth of cells.
Chemotherapy
Treatment of cancer diseases with the aid of chemicals that
eliminate diseased cells.
Cone beam CT (CBCT)
A CBCT system mounted to a linac or Gamma Knife creates
images used for verifying or determining the location of the
patient in relation to the treatment beam(s).
Computed tomography (CT)
A radiological method of imaging anatomical structures
by means of layering, using computer technology.
Deep brain stimulation (DBS)
A brain ‘pacemaker’ is implanted to stimulate brain activity
and block signals that cause unwanted symptoms present
in functional neurological disorders, for example tremor.
Diusion weighted imaging (DWI)
A method to evaluate the molecular function and micro-
architecture of the human body.
Electronic brachytherapy
Type of brachytherapy that uses an X-ray tube to induce radia-
tion. It can deliver radiation to the tumor with a high degree
of precision whilst minimizing damage to healthy surrounding
tissue. Due to the source of radiation used, electronic brachy-
therapy can be performed in a room with minimal shielding.
External-beam radiation therapy
The most common type of radiation therapy, in which the radi-
ation source is produced by a linear accelerator and delivered
by the radiation beam from the linear accelerator head
rotated around the patient. By delivering the radiation from
various angles, the radiation dose is distributed more evenly
inthe tumor without excess damage to surrounding healthy
tissue.
Fraction
Part of the total radiation dose, delivered at a daily treatment.
Food and Drug Administration (FDA)
Is an agency of the US Department of Health
and Human Services. The FDA is responsible for protecting
and promoting public health through the regulation and
supervision of for example medical devices.
Gamma Knife
®
radiosurgery
Stereotactic radiosurgery with Leksell Gamma Knife
®
.
Glioblastoma
The most common and most aggressive malignant primary
brain tumor. They are usually highly malignant as a large
number of tumor cells are reproducing at any given time and
are supported by a large network of blood vessels. Glioblastoma
often inltrate with normal healthy brain tissue.
High dose radiation (HDR)
An amount of radiation that is greater than that given in
typical radiation therapy. High-dose radiation is precisely
directed at the tumor to avoid damaging healthy tissue,
and may kill more cancer cells in fewer treatments.
Hypofractionation
A treatment schedule in which the total dose of radiation
is divided into large doses and treatments are given once
a day or less often.
Image guided radiation therapy (IGRT)
IGRT enables high precision targeting and accuracy using
high-resolution multi-dimensional X-ray images of the
patient’s tissue.
Image guided radiation therapy (IGRT) with magnetic
resonance imaging (MRI)
This provides high-quality images of tissue and tumors while
treatment is in progress, and also enables adaptation of the
radiation dose in real-time. The method is under development
in the MR-Linac consortium.
Intensity-modulated radiation therapy (IMRT)
IMRT is an advanced type of treatment that uses multiple very
small beams of varying intensity rather than a single, large,
uniform beam. The radiation can therefore be tailored to the
size and shape of the tumor, allowing higher tumor doses
while minimizing the impact on healthy tissue.
Incidence
Incidence is the number of new cancer cases arising in a given
period in a specied population.
Invasive
A treatment technique that penetrates the skin, skull, etcetera.
The opposite of non-invasive (bloodless).
Linear accelerator (Linac)
Equipment for generating and directing ionizing radiation for
treatment of cancer.
Magnetoencephalograph (MEG)
Equipment for real time mapping of the function in dierent
parts of the brain, by measuring the magnetic eld generated
by brain cells activity.
GLOSSARY
152
ELEKTA ANNUAL REPORT 2021/22
GLOSSARY
Magnetic resonance imaging (MRI)
Technology used to visualize and dierentiate organs and
anatomical structures inside the body. It uses non-ionizing
radiation and is thus harmless to the patient.
Malignant
Refers to cancerous cells that usually have the ability to
aggressively spread, invade and destroy tissue. Opposite
tobenign.
Meningioma
A type of tumor that develops from the meninges, the mem-
brane that surrounds the brain and spinal cord. Meningiomas
are the most common type of primary brain tumors and are
often benign.
Metastases
Secondary malignant tumors originating from primary cancer
tumors in other parts of the body.
Multileaf collimator
An accessory to the linear accelerator, working like an aper-
ture. With a large number of individually adjustable metal
leaves, the treatment beam can be shaped to the size and
shape of the target volume.
MR-Linac
See image guided radiation therapy (IGRT) with magnetic
resonance imaging (MRI).
Neurology
The study of the nervous system and its disorders.
Neurosurgery
Surgery of the brain or other parts of the central nervous
system.
Oligometastases
A limited number of metastases.
Oncology
The study of tumor diseases.
Oncology information system (OIS)
All patient information is collected and accessible in an oncol-
ogy information system, from diagnosis through treatment
and follow-up, so that clinics can deliver the best possible care
for every patient. MOSAIQ
®
is Elekta´s world leading oncology
information system.
Parkinson’s disease
Paralysis, with trembling and shaking as well as muscular –
rigidity, with a change in movements and posture by the patient.
Prevalence
The prevalence of a particular cancer can be dened as the
number of persons in a dened population who have been
diagnosed with that type of cancer, and who are still alive at
the end of a given year, the survivors. Prevalence of cancers
based on cases diagnosed within one, three and ve are pre-
sented as they are likely to be of relevance to the dierent
stages of cancer therapy, namely, initial treatment (one year),
clinical follow-up (three years) and cure (ve years). Patients
who are still alive ve years after diagnosis are usually consid-
ered cured since the death rates of such patients are similar
to those in the general population.
Radiation therapy
Fractionated ionizing radiation treatment of cancer.
Radiosurgery
Non-invasive surgery in which a high, single dose of precise
ionizing radiation replaces surgical instruments.
Stereotactic body radiation therapy (SBRT)
SBRT enables accurate delivery of radiation to a tumor and mini-
mizes the radiation dose to surrounding tissue. This enables that
small and medium-sized tumors can be treated with higher
doses and fewer sessions, known as hypofractionation.
Stereotactic radiosurgery (SRS)
This is typically used to treat tumors and other disorders in the
brain. The method involves the delivery of a single high dose,
to small and critically located targets in the brain. The method
oers very high precision, with a minimum impact on sur-
rounding brain tissue.
Stereotactic radiation therapy (SRT)
Radiation therapy of cancer, where high precision and accuracy
is achieved by delivering the radiation based on an external
xed-coordinate system.
Stereotaxy
A technique in which a xed-coordinate system can determine
the location of a point by specifying the coordinates in terms
of height, depth and laterally.
Tesla (T)
MRI requires a magnetic eld that is both strong and uniform.
The eld strength of the magnet is measured in teslas (T).
The majority of systems operate at 1.5T, even though there
are commercial systems available between 0.2–7T.
Treatment planning system
Treatment planning systems provide tools for multimodality
image registration, organ and tumor contouring, treatment
simulation and plan optimization. Monaco® is Elekta´s com-
prehensive treatment planning system that supports all major
treatment techniques.
Tumor
An abnormal mass of tissue that results when cells divide more
than they should or do not die when they should. Tumors may
be benign (not cancer), or malignant (cancer). Also called
neoplasm.
Volumetric modulated arc therapy (VMAT)
VMAT is a more advanced variant of intensity modulated radi-
ation therapy (IMRT). VMAT enables the physician to control
the radiation beam, dosage amount and speed of rotation
around the patient, which enables faster and more accurate
treatment.
153
ELEKTA ANNUAL REPORT 2021/22
Denitions
Average number of employees
Total annual number of paid working hours in relation to
number of standard working hours per year.
Compound annual growth rate (CAGR)
The mean annual growth rate over a specied period of time
longer than a year.
Capital employed
Total assets less interest-free liabilities.
Capital turnover ratio
Net sales in relation to average total assets.
1)
Cash ow per share
Cash ow after investments in relation to the weighted
average number of shares.
Contribution margin per region
Net sales less cost of products sold and expenses directly
attributable to the respective region.
Days sales outstanding (DSO)
The total of accounts receivables and accrued income less
advances from customers and prepaid income in relation
to twelve months rolling net sales divided by 365.
Earnings per share (EPS)
Net income attributable to Parent Company shareholders in
relation to the weighted average number of shares (excluding
treasury shares).
EBIT
Earnings before interest and taxes. Also called operating
income.
EBITDA
Operating income plus depreciation and amortization.
Equity/assets ratio
Total equity in relation to total assets.
Gross order intake
Order intake during a period.
Interest cover ratio
EBITDA in relation to interest expenses (excl. interest expenses
lease liabilities).
Items aecting comparability
Events or transactions with signicant nancial eect, which
are relevant for understanding the nancial performance
when comparing income for the current period with previous
period, including restructuring programs, expenses relating to
major legal disputes, impairments and gains and losses for
acquisitions or disposals of subsidiaries.
Net debt
Interest-bearing liabilities (excl. lease liabilities) less cash and
cash equivalents.
Net Debt/EBITDA ratio
Net debt in relation to EBITDA.
Net order intake
Order intake during a period adjusted for cancellations,
removals of orders and currency eects.
Operational cash conversion
Cash ow from operating activities in relation to EBITDA.
Operating margin
Operating income (EBIT) in relation to net sales.
Prot margin
Income after nancial items in relation to net sales.
Return on capital employed
Income after nancial items plus nancial expenses in relation
to average capital employed.
1)
Return on shareholders’ equity
Net income attributable to Parent Company shareholders in
relation to average shareholders’ equity excluding non-con-
trolling interests.
1)
Shareholders’ equity per share
Shareholders’ equity excluding non-controlling interests in
relation to the number of shares at year-end (excluding
treasury shares).
Value added per employee
Operating income plus salaries, other remuneration and
socialsecurity costs and cost of incentive programs
in relation to average number of employees.
Working capital
Short-term interest-free assets less short-term interest-free
liabilities, excluding current tax and derivatives.
1)
Average based on the last ve quarters.
DEFINITIONS
154
ELEKTA ANNUAL REPORT 2021/22
ALTERNATIVE PERFORMANCE MEASURES
Gross order intake based on constant exchange rates
Americas
EMEA APAC Total
% SEK M % SEK M % SEK M % SEK M
2021/22 vs 2020/21
Change based on constant exchange rates –2 –127 12 740 1 68 4 681
Currency eects 2 117 1 73 1 81 2 271
Reported change 0 –9 13 812 3 150 5 953
2020/21 vs 2019/20
Change based on constant exchange rates 23 1,136 –4 – 31 6 5 259 6 1,079
Currency eects –12 –581 –5 – 360 – 8 –462 –8 –1,403
Reported change 11 555 –10 –676 –4 –203 –2 – 324
Net sales based on constant exchange rates
Americas EMEA APAC Total
% SEK M % SEK M % SEK M % SEK M
2021/22 vs 2020/21
Change based on constant exchange rates 7 279 2 98 4 205 4 582
Currency eects 2 87 2 84 1 32 1 203
Reported change 9 366 4 181 5 237 6 784
2020/21 vs 2019/20
Change based on constant exchange rates –4 –187 –2 –118 11 516 1 211
Currency eects –9 –407 –5 –289 –8 –354 –7 –1,049
Reported change – 13 –594 – 7 –406 4 162 –6 – 83 8
Reconciliation of non-IFRS measures
Alternative Performance Measures (APMs) are measures and
key gures that Elekta’s management and other stakeholders
use when managing and analyzing Elekta’s business perfor-
mance. These measures are not substitutes, but rather supple-
ments to nancial reporting measures prepared in accordance
with IFRS. APMs used by Elekta are dened on
page 154.
Seebelow for comments on why these APMs are used by Elekta
and, when applicable, reconciliations to the IFRS nancial
statements.
Order backlog
Order backlog represents all orders that have been booked but
not yet revenue recognized. Elekta follows the maturity prole
of the order backlog when forecasting revenue.
Alternative performance measures
Gross order intake
Gross order intake represents the new orders that have been
booked during the period and this is in line with industry peers.
Order and sales growth based on constant
exchange rates
Elekta’s order intake and sales are, to a large extent, reported
in subsidiaries with other functional currencies than SEK, which
is the group reporting currency. In order to present order and
sales growth on a more comparable basis and to show the
impact of currency uctuations, order and sales growth based
on constant exchange rates are presented.
The schedules below present growth based on constant
exchange rates reconciled to the total growth reported in
accordance with IFRS.
155
ELEKTA ANNUAL REPORT 2021/22
Gross income and gross margin
Gross income is the dierence between net sales and cost of
products sold and is presented on a separate line in the income
statement. Gross income as a percentage of net sales rep-
resents gross margin. The Gross margin is used by manage-
ment to review eects on the income statement from factors
such as product mix and price development.
EBITDA
EBITDA is used for the calculation of the interest cover ratio
and operational cash conversion.
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Operating income/EBIT 1,845 1,696 1,657 1,906 1,643
Amortization
intangible assets:
Capitalized
development costs 408 664 746 685 493
Assets relating busi-
ness combinations 116 117 119 118 123
Depreciation
xed assets 151 162 410 401 422
EBITDA 2,520 2,639 2,931 3,110 2,682
Items aecting comparability
The classication of revenue or expenses as items aecting
comparability is based on management’s assessment of the
characteristics and also the materiality of the item.
Operating income (EBIT) and operating margin
EBIT is part of Elekta’s long term nancial ambitions. The mea-
sure is presented in the income statement as Elekta consider it
to provide users of the nancial statements with a better
understanding of the Group’s operating performance from a
nancial perspective. The operating margin shows the operat-
ing income as a percentage of net sales.
Capital employed
Capital employed represents the value of the balance sheet
net assets that is the key driver of cash ow and capital
required to run the business. It is also used in the calculation
of return on capital employed.
SEK M
April 30,
2018
April 30,
2019
April 30,
2020
April 30,
2021
April 30,
2022
Total assets 23,760 24,064 28,411 24,844 26,303
Deferred tax liabilities –511 –587 –545 –515 –549
Long term provisions –158 –188 –235 –224 –215
Other long-term
liabilities –63 –55 –73 –71 –120
Accounts payable –1,132 –1,427 –1,025 –1,016 –1,352
Advances from
customers –5,316 –4,883 –4,103 –3,759 –4,161
Prepaid income –1,990 –2,170 –2,226 –2,082 –2,342
Accrued expenses –1,662 –1,661 –1,703 –1,837 –1,901
Current tax liabilities –107 –166 –246 –137 –114
Short-term provisions –186 –188 –179 –174 –149
Derivative nancial
instruments –46 –94 –105 –35 –361
Other current liabilities –257 –308 –501 –559 –429
Capital employed 12,331 12,337 17,472 14,435 14,610
Return on capital employed
Return on capital employed is a measure of the protability
after taking into account the amount of total capital used
unrelated to type of nancing. A higher return on capital
employed indicates a more ecient use of capital.
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Income after nan-
cial items 1,681 1,580 1,454 1,630 1,501
Financial expenses 225 186 266 295 200
Income after nan-
cial items plus
nancial expenses 1,905 1,766 1,720 1,924 1,702
Average capital
employed
(last ve quarters) 11,194 12,010 14,247 15,735 14,638
Return on capital
employed, % 17 15 12 12 12
ALTERNATIVE PERFORMANCE MEASURES
156
ELEKTA ANNUAL REPORT 2021/22
ALTERNATIVE PERFORMANCE MEASURES
Return on shareholders’ equity
Return on shareholders’ equity measures the return generated
on shareholders’ capital invested in the company.
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Net income 1,348 1,198 1,084 1,253 1,154
Average shareholders’
equity excluding non-
controlling interests
(last ve quarters) 6,015 7,167 7,967 8,069 8,515
Return on shareholders’
equity, % 22 17 14 16 14
Interest cover ratio
The interest coverage ratio shows how much result that is
available to pay interest on outstanding debt.
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
EBITDA 2,520 2,639 2,931 3,110 2,682
Interest expenses 163 156 163 192 107
Interest cover ratio,
multiple 15.5 16.9 18.0 16.2 25.1
Operational cash conversion
Cash ow is a focus area for management. The operational
cash conversion shows the relation between cash ow from
operating activities and EBITDA.
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Cash ow from
operating activities 2,404 1,621 1,014 2,551 1,858
EBITDA 2,520 2,639 2,931 3,110 2,682
Operational cash
conversion, % 95 61 35 82 69
Working capital
In order to optimize cash generation, management focuses on
working capital and reducing lead times between orders
booked and cash received. A reconciliation of working capital
to items in the balance sheet is presented on
page 107.
Days sales outstanding (DSO)
DSO is used by management to follow the development of
overall payment terms to customers, which have signicant
impact on working capital and cash ow.
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Accounts receivable 3,402 3,455 3,379 3,281 3,647
Accrued income 1,160 1,401 1,526 1,772 1,796
Advances from
customers –5,316 –4,883 –4,103 –3,759 –4,161
Prepaid income –1,990 –2,170 –2,226 –2,082 –2,342
Net receivable
from customers –2,744 –2,198 –1,424 –789 –1,060
Net sales 11,573 13,555 14,601 13,763 14,548
Number of days 365 365 365 365 365
Net sales per day 32 37 40 38 40
Days sales out-
standing (DSO) –87 –59 –36 –21 –27
Net debt and net debt/EBITDA ratio
Net debt is important to understand the nancial stability of
the company. Net debt and net debt/EBITDA ratio is used by
management to track the debt evolvement and to analyze the
leverage and renancing need of the Group.
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Long-term interest-
bearing liabilities 4,369 3,558 7,101 3,043 4,099
Short-term interest-
bearing liabilities 975 1,000 1,001 2,141 510
Cash and cash equiv-
alents and short-term
investments –4,541 –4,119 –6,470 –4,411 –3,077
Net debt 803 439 1,632 774 1,532
EBITDA 2,520 2,639 2,931 3,110 2,682
Net debt/EBITDA
ratio, multiple 0.32 0.17 0.56 0.25 0.57
Equity/assets ratio
The equity/assets ratio gives an indication of the nancial exi-
bility and independence to operate and manage variations in
working capital needs as well as to capitalize on business
opportunities.
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Shareholders’ equity 6,987 7, 779 8,113 8,197 8,916
Total assets 23,760 24,064 28,411 24,844 26,303
Equity/assets ratio, % 29 32 29 33 34
157
ELEKTA ANNUAL REPORT 2021/22
Income statement
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Net sales 11,573 13,555 14,601 13,763 14,548
Operating expenses excl. amortization and depreciation –9,053 –10,916 –11,670 –10,653 –11,866
Depreciation –151 –162 –410 –401 –422
Amortization –524 –781 –865 –803 –616
Operating income (EBIT) 1,845 1,696 1,657 1,906 1,643
Financial net –164 –116 –203 –277 –142
Income after nancial items 1,681 1,580 1,454 1,630 1,501
Taxes –333 –382 –370 –377 –345
Net income 1,348 1,198 1,084 1,253 1,157
Attributable to:
Parent Company shareholders 1,348 1,198 1,084 1,254 1,154
Non-controlling interests 0 0 0 –1 3
Cash ow
SEK M 2017/18 2018/19 2019/20 2020/21 2021/22
Operating cash ow 2,357 2,256 2,526 2,660 1,869
Changes in working capital 47 –636 –1,512 –109 –12
Cash ow from operating activities 2,404 1,621 1,014 2,551 1,858
Continuous investments –816 –658 –761 –845 –1,408
Cash ow after continuous investments 1,589 962 252 1,706 450
Short-term investments –83 38 –26 60 –69
Acquisition of operations –58 –54 –511 172 –171
Cash ow from investing activities –957 –674 –1,298 –613 –1,649
Cash ow after investments 1,447 946 –284 1,938 209
Cash ow from nancing activities –367 –1,473 2,624 –3,605 –1,726
Cash ow for the year 1,080 –527 2,339 –1,667 –1,517
Balance sheet
SEK M April 30, 2018 April 30, 2019 April 30, 2020 April 30, 2021 April 30, 2022
Intangible assets 9,175 9,301 9,469 8,779 10,262
Right-of-use assets – – 1,156 953 975
Tangible assets 895 957 968 897 954
Financial assets 261 508 748 533 615
Deferred tax assets 350 402 504 436 616
Inventories 2,560 2,634 2,748 2,283 2,533
Receivables 5,978 6,144 6,348 6,554 7,271
Short-term investments 83 45 62 – –
Cash and cash equivalents 4,458 4,073 6,407 4,411 3,077
Total assets 23,760 24,064 28,411 24,844 26,303
Shareholders’ equity 6,987 7,779 8,113 8,197 8,916
Interest-bearing liabilities 5,344 4,558 8,102 5,185 4,609
Lease liabilities – – 1,256 1,054 1,086
Non interest-bearing liabilities 11,429 11,727 10,940 10,408 11,692
Total shareholders’ equity and liabilities 23,760 24,064 28,411 24,844 26,303
Five year review and key gures
FIVE YEAR REVIEW AND KEY FIGURES
158
ELEKTA ANNUAL REPORT 2021/22
FIVE YEAR REVIEW AND KEY FIGURES
Key gures
2017/18 2018/19 2019/20 2020/21 2021/22
Gross order intake, SEK M 14,493 16,796 17,735 17,411 18,364
Order backlog, SEK M 27, 974 32,003 34,689 33,293 39,656
Operating margin, % 16 13 11 14 11
Prot margin, % 15 12 10 12 10
Shareholders’ equity, SEK M 6,987 7,779 8,113 8,197 8,916
Capital employed, SEK M 12,331 12,337 17,472 14,435 14,610
Net debt, SEK M 803 439 1,632 774 1,532
Equity/Assets ratio, % 29 32 29 33 34
Net debt/EBITDA ratio, multiple 0.32 0.17 0.56 0.25 0.57
Interest cover ratio, multiple 15.5 16.9 18.0 16.2 25.1
Return on shareholders’ equity, % 22 17 14 16 14
Return on capital employed, % 17 15 12 12 12
Investments in tangible and intangible assets, SEK M 861 660 761 845 1,408
Depreciation and amortization, SEK M –675 –943 –1,275 –1,204 –1,039
Operational cash conversion, % 95 61 35 82 69
Average number of employees 3,702 3,798 4,117 4,194 4,631
Equity and equity/assets ratio
0
2,000
4,000
6,000
8,000
10,000
21/2220/2119/2018/1917/18
SEK M
Equity
Equity/assets ratio
0
10
20
30
40
50
%
Operating income (EBIT)
0
500
1,000
1,500
2,000
21/2220/2119/2018/1917/18
SEK M
Cash ow after continuous investments
–3,000
–1,500
0
1,500
3,000
4,500
21/2220/2119/2018/1917/18
SEK M
Operating ow
Change in working capital
Continuous investments
Net sales and income after nancial items
0
3,000
6,000
9,000
12,000
15,000
21/2220/2119/2018/1917/18
SEK M
Income after nancial items
Net sales
159
ELEKTA ANNUAL REPORT 2021/22
The AGM of Elekta AB (publ) will be held on Thursday 25August
2022. Pursuant to temporary legislation, the Board of Directors
has decided that the AGM should be conducted without the
physical presence of shareholders, representatives or third parties
and that the shareholders before the meeting shall be able to
exercise their voting rights only by voting in advance, so-called
postal voting.
Shareholders who wish to exercise their voting rights at the
AGM shall be registered in the register of shareholders on
Wednesday 17 August 2022, and notify by casting its postal vote
no later than Wednesday 24 August. This through a special form
or electronically through BankID verication, both approaches
handled via
www.elekta.com. For other instructions see
under the heading Postal voting in the Notice of the Annual
General Meeting that will be published no later than four weeks
prior to the AGM.
Since it will not be possible to attend the AGM in person or by
proxy, there will be no opportunity to ask questions at the AGM.
Questions can instead be sent in advance by post to:
Elekta AB (publ)
Attn Head of Investor Relations
P.O.Box 7593
103 93 Stockholm, Sweden
AGM 2022
Last day for sending in potential questions
to the Board or the President and CEO Aug 14, 2022
Record date to participate Aug 17, 2022
Last day for voting Aug 24, 2022
Final day of trading in Elekta shares
including the right to the dividend Aug 25, 2022
AGM Aug 25, 2022
Record date for rst payment of dividends Aug 29, 2022
First payment date for dividends Sep 1, 2022
Record date for second payment of dividends Feb 27, 2023
Second payment date for dividends Mar 2, 2023
Annual General Meeting
(AGM) 2022
or via e-mail to cecilia.ketels@elekta.com or by telephone
+4676 611 76 25, no later than on 14 August, 2022. Share-
holders who want the President and CEO to be able to address
the questions in his presentation, which will be available
on
www.elekta.com in advance of the AGM, need to
send the questions to Elekta on 8 August 2022, at the latest.
ELEKTA ANNUAL REPORT 2021/22
160
ANNUAL GENERAL MEETING 2022
Financial calendar
Interim report, Q1, May–Jul 2022/23 Aug 25, 2022
Annual General Meeting Aug 25, 2022
Interim report, Q2, May–Oct 2022/23 Nov 24, 2022
Interim report, Q3, May–Jan 2022/23 Feb 24, 2023
Year-end report, Q4, 2022/23 May 25, 2023
Regulatory status of products
This document presents Elekta’s product portfolio. Certain products or functionality described may be works in progress and/or pending regulatory
approval for certain markets.
Forward looking statements
This report may include forward-looking statements including, but not limited to, statements relating to operational and nancial performance, market
conditions, and other similar matters. These forward-looking statements are based on current expectations about future events. Although the expecta-
tions described in these statements are assumed to be reasonable, there is no guarantee that such forward-looking statements will materialize or are
accurate. Because these statements involve assumptions and estimates that are subject to risks and uncertainties, results could dier materially from
those set out in the statement. Certain of these risks and uncertainties are described further in the section Risks on
page 36. Elekta undertakes no obli-
gation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required
by law or stock exchange regulation.
© 2022 Elekta AB (publ). Elekta, Gamma Knife, Leksell, Leksell Gamma Knife, Monaco, MosaiQ, and all marks identied as a trademark (™) or a registered
trademark (®) are the property of the Elekta Group. All rights reserved.
No part of this document may be reproduced in any form without written permission from the copyright holder. Production: Elekta’s Investor Relations
and Finance Team, in cooperation with Solberg and Henricsson Design. Photos: Getty Images, Adobe Stock, Shutterstock, Magnus Fond, Eva Dalin,
Jesper Koefoed, Maarten ter Mors and Xiaoqiang Wang.
Elekta AB
Box 7593
SE – 103 93
Stockholm, Sweden
T +46 8 587 254 00
F +46 8 587 255 00 elekta.com /company/elekta @elekta_@elekta/elek ta