#1Elekta Accelerating initiatives to expand margins Q1 report 2022/23 Gustaf Salford, President and CEO Tobias Hägglöv, CFO Aug 25, 2022#2Agenda Towards improved access to the best cancer care Q1 financials Outlook Q&A Elekta 08 BI De 8 25 SE 11.40 11 E 3003 MART ATAO TS 2#3Important information This presentation includes forward-looking statements including, but not limited to, statements relating to operational and financial performance, market conditions, and other similar matters. These forward-looking statements are based on current expectations about future events. Although the expectations described in these statements are assumed to be reasonable, there is no guarantee that such forward-looking statements will materialize or are accurate. Since these statements involve assumptions and estimates that are subject to risks and uncertainties, results could differ materially from those set out in the statement. Certain of these risks and uncertainties are described further in the Annual Report in section "Risks and uncertainties". Elekta undertakes no obligation 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 regulations. This presentation is intended for investors and analysts only. Some products are still in research and/or not cleared/approved in all markets. Cancer statistics are given to show the potential market in the respective area and does not mean that Elekta currently has products to treat these indications. Elekta 3#4Towards improved access to the best cancer care Elekta 4#5Delivering on our strategy ACCESS 2025 Elekta Accelerate innovation with customer utilization in mind A world where Drive partner integration across the cancer care eco-system Be the customer lifetime companion everyone has access to the best cancer care Drive adoption across the globe People Resilience & Process Excellence across the value chain Delivered in a sustainable way LO#6Global macroeconomic turmoil impact market conditions Americas -43% Tough comps and cautiousness in the U.S. but growth in Latin America US, New Jersey RW JBarnabas Health 2nd Unity Panama Centro International de Cancer LGK Elekta Based on constant currency. EMEA 11% Strong growth - Spanish tender driving Europe APAC 9% Growth despite contracting Chinese market Spain several regional hospitals Multiple Solutions Nigeria Kaduna Cancer Center Unity, Linacs, LGK, OIS, Service Japan Teikyo University Hospital Harmony Pro, Kaiku 6#7Revenue continued to grow despite continued market turmoil but margins under pressure 15% Growth figures and margin, rolling 12 months (RTM)1 Q1 key figures 10% Order Revenue Order -11% 3% 5% 4% Revenue Adj. gross margin 38.9% 3% 0% Adj. EBIT margin 4.0% Q1 Q2 Q3 Q4 QB Q4 Q1 Q2 Q3 Q4 -5% FY19/20 FY 20/21 FY 21/22 FY 22/23 -10% Covid Elekta 1 Order and revenue development based on constant currency. Supply chain disturbances Component shortages Lockdowns in China Inflation War in Ukraine 7#8Accelerating Elekta by introducing an additional cost reduction Initiative to expand margins FY 21/22 - ongoing Resilience and Excellence Program Faster order backlog to revenue conversion FY 22/23 ☐ Additional Cost-reduction Initiative Increase productivity in operations and service Optimize innovation pipeline and leverage global product organization Drive efficiencies in selling and administration functions New launches and price increases ◉ Digitalization and automation of processes ■ Continued shared service deployment (Poland) Elekta Supply chain optimization (UK, China) Localization of key processes (e.g. installation teams) 8#9Q1 financials Elekta 9#10Stable revenue growth and improved adjusted gross margin Increased net sales by 3% y-o-y¹ · Growth in Americas 7% and EMEA 2%, APAC flat • Solution -1%, Service 6% Improved adj. gross margin both y-o-y and sequentially FX positive on a gross-margin level but substantial negative impact from currency hedges y-o-y · Stronger USD Weaker SEK Elekta 1 Net sales growth based on constant exchange rates. 2 Excluding items affecting comparability (IAC). (SEK M) Net sales Solutions Service 3,327 3,009 Q1 22/23 Q1 21/22 Q4 21/22 4,239 COGS² 1,706 1,631 2,658 1,621 1,378 1,581 -2,032 -1,894 -2,669 Adj. gross margin 38.9% 37.1% 37.0% Expenses² -1,088 -981 -1,020 Exchange rate diff and other -76 66 20 Adj. EBIT 132 201 570 Adj. EBIT margin 4.0% 6.7% 13.4% EPS, SEK 0.16 0.33 1.09 Adj. EPS, SEK 0.19 0.33 1.09 10#11Improvements in adjusted gross margin despite higher logistics and supply chain costs 40% Adjusted gross margin development Impact vs. LY Net sales growth +120 bps 30% 37.1% 38.9% 20% 10% Product mix and Solution-Service mix +250 bps +180 bps FX impact +110 bps 0% Q1 LY Q1 FY Higher supply chain costs and inflation -300 bps Elekta Net sales growth based on constant exchange rates. Margin excluding IAC. 11#12Increased activities at higher costs Quarterly expenses Higher selling costs Expenses • More in-person customer events and meetings including travel and exhibitions (SEK M) Q11 22/23 21/22 Q1 Growth² Q4 Y/Y Growth1 21/22 Q/Q Selling -390 -316 14% -380 0% Administrative -317 -274 9% -309 -2% Higher administrative expenses y-o-y but sequentially decreasing Continued investments in innovation pipeline • Net R&D expenditure decreased y-o-y as R&D projects proceeded and amortizations were lower Sequentially net R&D increased due to higher gross R&D in Q1 Elekta Excluding items affecting comparability (IAC) of SEK 7 M. 2 Based on constant exchange rates. R&D (Net) -380 -391 -10% -331 12% Total -1,088 -981 3% -1,020 3% 12#13Optimization of innovation pipeline Rolling 12 months (RTM) SEK M R&D expenses as % of sales (RTM) Gross R&D 2 400 15% 15% Gross R&D as % of net sales 2 200 2 000 10% 10% 1 800 1 600 5% 5% 1 400 Gross R&D as % of net sales Net R&D as % of net sales 1 200 1 000 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20/21 Q1 Q2 21/22 22/23 Elekta Important innovation investments was driving gross R&D (RTM) to 15% as percentage of net sales. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Gross R&D expected to stabilize and decline during coming quarters. Gradually increase of amortizations throughout the year. 13#14Elekta Net working capital (NWC) ratio in line with seasonal pattern despite some inventory build up NWC changes (SEK M) NWC as % of net sales Liabilities Assets 10,333 9,634 457 372 60 9,435 54 20/21 Q1 21/22 22/23 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 OB Inventory Accounts Accrued Other Q1 22/23 CB receivable income Q1 22/23 -2% -3% -3% -3% -4% -4% -4% -6% -7% 231 72 364 31 10,159 OB Accounts Prepaid Customer Other Q1 22/23 payable income Advances CB Q1 22/23 14#15Cash conversion close to target of 70 percent Q1 Cash flow (SEK M) Operational cash conversion, RTM -28 379 -549 EBITDA Elekta Taxes, interest net and other -198 100% 80% 61% 61% 60% 40% -594 20% -396 Change in Cash flow Continuous Cash flow from investments¹) after operating WC activities continuous investments 1 Of which SEK 348 M related to investments in innovations 2 Cash conversion = Cash flow from operating activities/EBITDA 3.000 82% 82% 77% 71% 71% 69% 67% 2 000 1.000 0% 0 Q1 20/21 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 21/22 22/23 Operational cash conversion²), % Cash flow from operating activities, SEK M 15#16Introducing Cost-reduction Initiative to secure profitable growth Estimated reduction spend, SEK M 2022/23 Yearly run-rate Increase productivity in operations and service (COGS) ~50 -150 Optimize innovation pipeline and leverage global product organization (Gross R&D) ~110 -200 Drive efficiencies in selling and administration functions ~40 -100 50% 60% Selling Admin. Total 50% ~200 Implementation costs of up to SEK ~400 M (defined as items affecting comparability) 40% ~450 Elekta 16#17Outlook - Q2 FY 22/23 and midterm Elekta 17#18Outlook Q2 FY 22/23 • ● Uncertain macroeconomic environment and supply chain challenges to continue to impact installations, costs and margins Installation volumes expected to be in line with LY Long-term market trends to support growth and investment in high-end radiotherapy equipment and margin expansion Elekta 18#19Midterm outlook until 2024/25 unchanged Elekta Net sales EBIT margin Dividend policy >7% CAGR over period expansion over period Elekta's outlook is based on an average 6-8% market growth during the mid-term period ≥50% of annual net income 19#20Summary Q1 • • • Continued revenue growth and strong order intake in EMEA and APAC Increased market activities and continued higher supply chain costs and inflation impacting margins Cost-reduction Initiative launched to expand margins and support profitable growth Reiterate outlook to 2024/25 and continue to deliver on ACCESS 2025 Elekta 20 20#21We don't just build technology We build hope Elekta 21#22Q&A 22