Elekta (EKTA) Strategy update summary

Strategic transformation and direction

• Four must-win battles identified: simplify/empower/speed, focused innovation, win in the US, and expand in China, with ongoing COGS reduction as a key focus.

• New operating model targets over SEK 500 million in annual savings, with restructuring costs of SEK 450–500 million and a workforce reduction of 450 employees.

• Leadership team renewal includes new CFO, Head of HR, and COO, with full implementation expected by Q4 or Q1 next year.

• Execution of transformation is on track, with a high sense of urgency and full cost-saving effects expected in Q1 of fiscal 2026/27.

• Detailed financial plans and targets will be presented at the June Capital Markets Day.

Innovation and product portfolio

• Shift from large, long-term innovation bets to faster, customer-driven innovation cycles, especially in software.

• Creation of a Product and Technology Office and integration of workflows and software across the portfolio.

• R&D investment remains at 11–14% of sales, with a focus on workflow efficiency, patient throughput, and treatment outcomes.

• Emphasis on software-enabled and integrated solutions, with Elekta ONE as a key differentiator.

• R&D efficiency and ROI expected to improve, benefiting customers and investors.

Regional strategies: China and US

• China: Maintains 40–45% linac market share, with only 4–5% revenue decline during a >40% market contraction and 6% CAGR revenue growth.

• Deepening localization of portfolio, supply chain, and software; joint ventures and regulatory clearances support growth.

• US: Market share has declined to 21–23% of group revenue, but new EVO platform and organizational changes aim to regain momentum.

• High customer interest in adaptive therapy and hypofractionation; strategy includes leveraging installed base and software integration.

• Both regions focus on expanding into underserved segments and leveraging service and software for growth.