Elekta AB (publ) (EKTAB) Earnings Call Transcript & Summary

So welcome, everyone, to ekes Capital Markets Day 2026. Welcome you here in Stockholm at [indiscernible] and also welcome all of you online. My name is Peter Nyquist, and I'm Head of Investor Relations since about 2 years now. So the big picture, we're going to have 3 hours of presentations. We will end with a 45-minute Q&A. And hopefully, around 3:00, we will have a break for coffee and refreshments. So that's the setup. I will go into more details later on. But let me start with some reflections. Talking to both sell side and buy side over the last month and weeks, there are 3 areas that we hopefully will cover today that comes in mind. One is around products, one is really around growth in regions and competition. And the third 1 is about financial performance. So if I sort of comment each of them, if you talk about products, question we'll get a lot is Elekta competitive enough in radiotherapy to stay in the forefront, both when it comes to software as well as hardware. Hopefully, today, our CEO, our Chief Technology Officer as well as our regional managers will be able to answer that question, the uniqueness with the offering we have today, but even more important, we will spend quite a lot of time on the innovation we have coming up in the coming months and years. The other thing that is discussed, and you probably know that as well, is growth and competition in regions. And basically, highlighting 3 regions, clearly important for Elekta, it's U.S. and that is about the success of [indiscernible]. What has happened to the reimbursement system in the U.S. How is that going to support you going forward? The other one is around China, really, as Elekta is the market leader, how will Elekta stay market leader in China going forward? And how will Elekta be able to leverage from the recovery in the marketplace? And finally, Europe, a few years of successful launch of Evo, how will that stay? How will continue to embark on that in the coming years? We have our regional manager today presenting topics and answer those questions how we will be tactful to keep our leading position in China. And also grow in the U.S. and continue to grow in China. The last part is around earnings and financial performance. And lately here, especially after Q4, a lot of questions received is the only way for Elekta to improve its earnings by cutting costs. And hopefully then, our new CFO Klara Eiritz, will be able to present to you. It's not only by cutting costs that we will be able to deliver on our 14% to 16% EBIT margin target that we have '28, '29 presented today, that we will be able -- will also be product mix, launches, price improvements that will carry Elekta up to those margins. So let's look at the agenda. We will start then with Jakob, talking about the strategy for about 20 minutes and targets. And then Christoper will spend quite a lot of time on products. So we will have a long session about that. That's extremely important. We will have a break for 15 minutes. And then we will go into the next section, which start with markets. We will have Arno who is heading up Europe. We'll talk about Europe, and then we have Arialso here talking about U.S. in particular, but heading up regional Americas. And I mean, we will have on a video prerecorded for this event. Then Klara will close the loop by talking about the numbers and the financial targets that we have. And then a short conclusion -- concluding remarks from Jakob, and then we have 45 minutes for Q&A. But before we start, I would like to remind you that some of the presentations here contain forward-looking statements. That could include revenue, operating results, products and product developments. These statements involves risks and uncertainties that may cause actual differ material from those set up in today's presentations. With that said, I would like to introduce our first speaker, our CEO, Jakob Just-Bomholt. Jakob joined Elekta in August last year. Before joining Elekta, he was the CEO for [indiscernible], a Danish medtech company. And before that, he had numerous leadership roles within Maersk. So please take up the stage is yours.

So warm welcome today's CMD day in a very warm room also to the online participants. Over the last 12 months, we have been very clear, I believe, in saying that Elekta, we are not trading at our full potential. That clearly calls for actions. You want to get back to full potential. And what we will outline to you today is really what is the ongoing execution momentum. It's a realistic assessment of our competitive position in Elekta in the market. But then most importantly, what is the plan to correct our shortcomings and propel the company going forward. So we have been very much looking forward to today, and we are ready. We know what to do. If we look at Elekta, and I think it's important to understand the Elekta case, we have been in precision radiotherapy for more than 50 years. What we do is really hard. It started with the Lexel Gamma Knife that is still the gold standard for treating the brain and is a best-selling product within brain treatment around the world. But today, of course, we are much more than that. We have presence globally. We have an installed base that continues to grow year by year, now more than 7,500 units internal, external beams. And very importantly for us, we see more than 2 million patients, and that number grows every month. We are being treated on our equipment, of course, not as treating, but we enable clinicians to treat. So that really ties into also our overall purpose of setting the standard of care to really bring hope to patients and you have all been touched by cancer. So what we do is also important from an industrial perspective because look at the graph here, the cancer burden is increasing. You all know that. The biggest risk factor of cancer is age. And we are aging and the population is growing, which means that there is an underlying growing demand for cancer treatments. And then at the same time, there is a shortage of skilled professionals. We actually see that trend accelerating. And that puts a positive pressure on us as a vendor to innovate, innovate for precision and innovate for productivity, and Christopher, you'll come back to it. Then to the right, you see that precision radiotherapy is really relevant for just about 50% of patient cases. We estimate that 40% of all cancer patients are treated with radiotherapy. But look at the budget, it's 10%. So that really gives you an idea that from both a clinical outcome, but also from a cost ratio is a highly efficient way of treating patients. And that's why we say that even though in certain markets, you'll talk about reimbursement challenge we have in the U.S., favorable for us actually, we have certain challenges in certain markets, but fundamentally, there is a tailwind because it's an attractive way from health care systems to treat patients. So that's where we are on an industry. If we then translate that into numbers for radiotherapy, this is our view of the industry. The way that I think about it is a niche market, but a very large niche market. within medtech, roughly internal, external beams, including software, including service, USD 7 billion. And when you look at the market, say a bit more than 50% is associated with the upfront purchase of equipment and corresponding software and a little bit less on software upgrades, cloud-based Software-as-a-Service and then, of course, the technical service to sustain the equipment over a 10-, 15-year lifetime. So it is, if you will, a [indiscernible] model that should lend itself to predictive revenue. Then over the years, we have seen inflection points from a technology perspective within radiotherapy. We have seen the image-guided radiotherapy, so we can actually see what we shoot at, and now we move into an error of adaptive radiotherapy. And I just want to pause a little bit to explain what is that really about? So with better imaging, you can really see better the tumor. And with that better precision then you have increased confidence in escalating the dose. But if it takes a lot of time, it's not going to help you. So we see combined also that we can do a replan with the patient on the table faster and faster. And when you add those 2 things together, better precision and faster replanning, you really get into hypofractionation at scale, not just for the top end clinics, but for many -- and with scaling hypofractionation clinics, hospital systems can treat more patients because you can go from potentially 3 fractions to 5. We then show an example of 2 fractions treating prostate that's good for the return on the investment for customers, and it's obviously good for U.S. as patients. So there is a lot of innovation to be harvested, and that's why we will continue to sustain a strong investment profile in R&D and fundamentally good news for a company like Elekta. But then how are we positioned as a company. We are positioned very well. As I said, the starting point of Elekta is really that we were born for precision radiotherapy. So our ambition is to have the world where everyone has access to best possible cancer care. We will do our part by making the equipment available around the world. Then obviously, our ambition is to lead within precision radiotherapy -- we are very clear eye on where we play. I'll show you our portfolio logic, but it's within linac [Audio Gap] integrated system of hardware and software and Christopher, you'll outline why is that integration increasingly important with adaptive combined with services. Then we have chosen positions of innovation leadership, clearly on our Brain euro product categories, but also within Adaptive within motion management within the imaging. So we do select plays where we believe we lead ahead of competition. And then we have global scale. By the way, also super important when you service your equipment to have that network density. And I'll get back to strategic priorities and our midterm targets, okay? If you then look at the company, and I think it's important when we outline our product innovation strategy, it's actually a very well-defined product portfolio. So it's CT linacs. Within that, we have recently now tailored it to 6 up product categories, but CT linacs and we have MR-linac, our MR-guided linac accelerator, then we have our Brachy business, and then we have our One Europe business, and it's all combined with the Elekta One software suite, where we are increasingly working on unifying and integrating all products under the same software architecture. If you then look at our competitive position, it actually has a very attractive profile. So within euro, we are clear #1, clear, clear. Within Brachy, equally clear #1 in both those 2 product categories, more than half of the global market. Then MR linac, you can argue it's easy to be #1 when you're the only one with the product, but it's still #1, and it's actually quite a good way of entering hospital systems and then make our CT linacs available because we are the only shop in town, if you will. And then we have a clear #2, but challenger position within CT linacs and correspondingly within our both planning software and oncology informatics system. You'll recognize, to your right, the industry size of roughly that SEK 7 billion. And that translates into as an installed base, not annual, installed base 18,000 units of external beams. So that's how we look at the industry. If we then look at where are we today, the -- as I started out by saying we're not a full potential, I can argue, is it an improvement plan, our turnaround. I believe it's a turnaround and we have been going through a reset and stabilized phase, as we call it. And what has that really been about Well, it's been about simplifying, decentralizing the organizational structure to give you example, half a year ago, we were roughly 4,600 colleagues. We are now 4,000. That was not a goal in itself. The goal was really to accelerate the speed by which we innovate and service our customers. We said then that with that simplification of the organizational structure, we need fewer people. And we will continue to optimize our processes, but that will correspond to a saving of more than SEK 500 million. You'll give an update on where are we in Q4 versus what we can say our baseline in Q2. We have strengthened leadership team -- if we look at the Executive Committee, there's been quite a lot of change within executive management. But when you say you're not performing a full potential change needs to start at the top, and I feel very good about the people we have brought on board and will bring now a COO to drive operational excellence within Elekta starting first of August. And then we have talked a lot about the culture, more performance [Audio Gap] But it has to be done from a strong foundation. So we have taken choices. What are we innovating for, what is our innovation highway and what are we not going to do? It's generally been with a commercial lens, what is important for our customers, what delivers return on investment, what delivers productivity and what delivers good clinical outcome? Then we are going to release products and, Christopher, you'll share. I'm excited to see your presentation and then absolutely on commercial execution, and you'll have 2 of our regional heads, Europe, U.S. here presenting on stage and Ming from China. And then we worked a lot on our pricing framework. So we ensure that the orders we get in are profitable today and tomorrow, and then we continue to work on our COGS to expand the gross margin. But we are really keen on moving from improved profitability into innovation-driven growth because that's, at the end of the day, what is going to deliver the full potential of Elekta. That is to grow at or above the market. So we will continue to invest in R&D. As I said, roughly, the way you should think about 10%. We will continue to have a mindset of continuous release of products, not big bangs, but continue, and we believe it's great for customers to buy with Elekta and then during the lifetime on the equipment be able to upgrade. We have very strong ambitions. And I would also say proof points that we can grow above market in the U.S., we have to because we are now 20% of revenue from U.S. should be significantly higher. And then operational excellence will absolutely be a muscle we can stimulate a bit more. And then as we grow, we will still be a little bit tighter on OpEx to see some of it invested in growth, but also some of it supporting our midterm EBIT guidance. Then we have 4 must-win battles that really guide the organization that reflects also the phases we are on. The first simplifying power speed. I just want to remind you, it's been a big reset. I think it's been great. Dust is still settling in. Everyone got -- many got new reporting lines, but essentially, what we wanted to do is 2 things, maybe 3. One, reduce number of organizational layers from 9 to 6. I know it works because when you have fewer layers, you take faster decisions. Then we wanted to decentralize and empower both regions, but also our functions. I want people to take decisions. Don't want them to come and ask me [indiscernible] because what really needs to be a core strength for our company like Elekta, we are not that big, is to take fast decisions and take decisions very close to our customers. And then it meant that a lot of managers were leading the organization. So we have more doors and fewer checkers, checking the checkers, if you will. But we feel very good about where we are, and you'll show some financial outcome. But the most important thing here was to increase velocity, make us run faster. Then we talk focused innovation. You'll give more color, [indiscernible], but it's really in a company like Elekta, we have to be clear in on what is important for our customers and then we innovate and then we continue to invest to support that direction. We have a strong market-leading position in China, roughly 40% [Audio Gap] And then lastly, on continuous cost reduction. I would say we have potential to work closely with our vendors, do continuous upgrade to make sure we are on the latest tech stack and continue to see a bit [indiscernible] model always to get your cost a little bit lower next year than this year, right? So that's the path we're on. That didn't translate when we put it all together and we look at our order backlog, we look at the activities into our guidance for this fiscal year of revenue growth in fixed currency at 2% to 4%. We feel good about that. And then an EBIT margin of 12.5% to 13.5%, we equally feel good about that range. Keep in mind, this assuming that capitalization is going to match amortization. I'll just make that point because it's a deviation from how we have done in the past. So -- and if we look at our midterm target, we expect the company to grow mid-single digit. That is probably, over the period, slightly below market. But mathematically, we will hit the market growth rate year 3. And I would say, personally, I'll struggle not beating our main competitors and grow with or above the market. But that is the plan we are ready to share with you today. And then on EBIT margin, 14% to 16% with the same assumption on capitalization and amortization and then translated into a free cash flow of roughly 10%. And if you do the math going forward on revenue, it should lend to a free cash flow before dividend of SEK 2 billion, so a significant increase. And we were happy last year we saw net debt come down and we'll probably continue to see that trend going forward. Then as I said, mathematically speaking, with the mid-single-digit growth rate and the guidance of 2% to 4% and we will see an accelerated growth through the 3-year period. So what underpins that growth absolutely, first and foremost, product releases, right? We are medtech, it all starts and ends with products, but then absolutely also with commercial execution. So we'll see our expansion in U.S., but let's not forget the other markets, and that's why they're here today. Then we can double-click further on software and service expansion. But given the margin profile, it's very important we continue the trajectory on software sales and service sale. And then lastly, it's important when you look at radiotherapy overall evolve, while mature in Western Europe and the U.S., there's a huge unmet need elsewhere and that translates into a greenfield expansion in a number of markets. And of course, we want to capture that, and that also underpins the 6% growth that I started the presentation with. And then just to double click on service and software. As I said, it has a attractive margin profile, service contracts that typically attach other point of sale upon expiry of the warranty. And in many markets, I wouldn't say customers are captive, but there is a strong preference, of course, for service from vendors. In other more creative emerging markets, we are looking at how can we embed service stronger into our software offering. And then on the actual software, we are rolling out performance planning and our planning software will continue to accelerate our Software-as-a-Service. That's really our cloud-based OIS software. And then very importantly, we use software to really integrate workflows, which is a very significant demand from our customers, fewer clicks, faster productivity. So what I would like to leave you with from my short introduction is, I personally think the radiotherapy has all the ingredients to be and is an attractive industry segment. We have a strong position. We are market-leading in number, #2 in others, and that's it. And we have a focused product portfolio. We are not at full potential, hugely unsatisfactory to say. I hope I'm not going to use the same words in a couple of years. And we will execute our turnaround in 3 phases. We give and take believe we are in the middle of that phase. We will continue to see sales growth. Sales growth will be accelerated through the 3-year period. And that then translates into midterm EBIT targets of 14% to 16%. And and corresponding significant uplift in our free cash flow. Yes. Thanks for your attention.

So thank you, Jakob. Thank you. So the next speaker, been mentioned quite a lot about Jakob, so big expectations, and I'm sure you delivered is our Chief Product and Technology Officer, Christopher Busch. He's been with Elekta since 2023. Before that, he had senior R&D roles in Philips. And he will lay out the -- among other things, the innovation pipeline that will support our future growth. So please, Christopher.

Thanks, Peter. So hello, everybody. I want to show you in the next roughly 25 minutes, the logic behind why we will be very competitive and also increasingly successful in the market in the next few years. And I stood here roughly 1 year ago, and what we presented then was a little bit fuzzy. I think today, we will be very concrete, both with our guidance, but also with our upcoming releases. So how is the logic of my talk going to be built up? It was mentioned already, focused innovation. So we have focus from different angles and what we do, how we do things and how we choose certain things to do, but also not to do. I'll start briefly with a look at our portfolio, how it was in the past and where we are at the present as a baseline and then go into some underlying industry trends that are driving where the market is going to go and then focus very concretely on our innovation agenda and what we are going to release and how we are going to do it. Looking at the history, as was mentioned before, we started in 1960s with the Lexel Gamma Knife with the idea of having surgery in the brain without open incisions. So surgery without a knife. And it was possible in the brain, and we have been still very successful at this -- to this stage to work on this. And please keep that kind of thought in mind because I will return to it because we are now at a point where we can bring the same promise to the overall body of a patient. In the 2000s, we added imaging to the therapy treatment while the patient was in the room. So this is image-guided therapy. This is the synergy, was a great success and revolutionized how people were looking at radiation therapy. Then also, somewhat later in the 2000s, we said now we can, with this confidence of better seeing what we are doing and able to modulate the beam to shape it much more precisely about how the tumor was looking, and this is what we call volumetric modular arc therapy, VMAT. Now fast forward to 2010, Elekta made a big bold decision to really go for the ultimate in image guidance and that was or is the MR linac, where we combine MR with radiation therapy device, both for ultimate visibility of soft tissues, both cancer, but also organs at risk, but also enabling real-time 3D motion management. And now we're at a point where we are bringing adaptive across our entire linac portfolio. And we can do this now because there have been advances in software, in AI, in compute power, in imaging, and they all have come together and they're all coming together to make this possible to be scalable, not just for the academic centers, but for the broad application in the clinics. Now this is a slide you have seen before. My point here is that, increasingly, this is not a portfolio of individual products that are isolated and are developed in isolation, but increasingly, they have a similar backbone, whether that's a workflow-driven backbone, whether it's a user experience backbone or whether it's just a software backbone. My focus will be today on the CT linacs, MR linac and our Elekta One software suite, but also the -- specifically on the software side of things, these topics are being applied into the Brachy and through the Neuro region. And the most important product that we currently have and we focus on that is also going to be the core of what I will show you is the CT linac enabled through software-driven innovation. It's not a device story. It is a software device combination story. So what are industry trends? And I will focus on 4. In the past, there was a choice clinics had to make. Are we going for high productivity, short treatments, standardized, or are we going for personalization, complex treatments? And you had to go either way. Now with the advances of the technology, and we'll come back to that, this becomes not antagonistic anymore. You can have both, the margin of marry that you have to do. If you want a productivity is less. It's not any more as high as you had when you did in the past, come back. Number two, to do this, to achieve number one, you also need to make sure that there is no less safety, efficiency and accessibility that requires a deep scale of integration of different technologies. You cannot look at them in isolation. You cannot look at the treatment planning software independent from the linac independent from the imaging independent from the data storage. As was mentioned by Jakob, this enables dose escalation, and that's a very important stepping stone to hypofractionation, and I'll talk also a little bit about ultra-hypofractionation because ultra hypofractionation is nothing else than radiosurgery, bringing us back to the idea of the Gamma Knife. And then lastly, I will talk a little bit about why clinicians and also now reimbursement tiers are going to favor the uptake of these complex treatments. But if they want to be up -- taken up at scale, they need to be accessible and easy to use. They cannot come at the cost of a large number of extra staffing or at very complex treatments that nobody or very few people can actually partake. When you look at personalization productivity, if you look at the ultimate radiation therapy device for personalization, that used to be the MR linac. It has all the imaging, it has all the control of our dose, it has the real-time motion management, you can really see what you're doing, while you're doing in 3D in motion. But this came at a price of reduced -- of increased complexity, and therefore, reduced productivity. You need it highly trained personnel, you need longer treatment session, and therefore, the commercial value for this device was less pronounced. On the right side, you see the Elekta CT linacs. And the CTX have been optimized for a long time now to make many treatments in a short amount of time. So treatment sessions of 10, 11, 12 minutes, and making sure that you get a high number of patients through. So they are building increasingly on simplicity. And now what technology, as I mentioned, AI, GPU power for compute and enhance imaging makes it possible that these things become enabling each other. And I'll show you examples of that. So the goal where we are going and that's industry-wide, it's increasingly autonomous and often adaptive treatments that are still efficient. When we talk about this, you have to say, you want to do this, but it cannot come at the price of either safety, efficiency or accessibility. So workflows that used to be done in weeks from first imaging of the patient in the simulator doing contouring segmentation and then later making a treatment plan and then depositing the dose in 30 fractions or so over a course of weeks to the patient now becomes compressed to minutes. And that's fantastic. But of course, if you compress a lot of work steps into a few minutes, the risk of something going wrong, this risk of overseeing something is becoming increasingly larger. So you have to think about how can we make sure that all these work steps, and you see on the right, the diagram about what needs to come together, how can we make sure that this is developed, tested, verified in a safe way. And that's also what we see when we look at regulatory bodies, specifically in the U.S., who tell us as vendors, it's great that you want to offer this to customers, but please show us, demonstrate to us that this is fail safe, that the risk of something going wrong is very small. And so we believe this requires deep co-development of these connected workspaces and also a shared integrated system architecture. And that makes -- when we talk about how we do innovation at Elekta that people are working on treatment planning software, people working on the linacs, people working on the control systems, people working on the OS, they need to work increasingly together. Change of how we do things. Now the third industry trend and it has been going on for years that what used to be 40 fractions became 30 fractions and 20 fractions, so fewer fractions with higher doses. The trends towards hypofractionation. And where we are leading as Elekta, is that now you see clinical studies, you see here the HORMEL study, and you see here an ASTRO release from earlier this year where we go to this ultra-hypofractionation, which we believe will enable breakthroughs and how productive linacs and specifically Unity can be. What you see here is that people have no evidence that you can reduce the number of fractions for certain cohorts of prostate cancer patients down to 2. And you can deposit that kind of amount of dose in 30 minutes and less. So what this means is that you can start treating prostate cancer in 2 fractions of 30 minutes in a total of 1 hour. And I'm not going to talk about seamless simulation less treatment planning, but this is a breakthrough, both from a productivity perspective, but think about it from the perspective of a patient. Think about it from the perspective -- commercial perspective of a hospital, and this is prostate, and it will go to other organs as well. So we believe this will lead in or is leading in an era of stereotactic [indiscernible] therapy that is building on the original thought of the Lexel Gamma Knife, but bringing the same kind of principles now to the rest of the body because technology makes it possible. And Elekta is leading because to go this extreme, you really need the technology of an MR-guided system to be really confident and sure. The last one I want to talk about before I move over to our own portfolio is we see significant shifts in reimbursement. On the left, you see the U.S. where even as recent as the beginning of 2026, the U.S. reimbursement coding has been simplified to have tiers of simple, medium and highly complex treatments. And Arti will talk a little bit more about it, but the reimbursement for simple treatment has gone significantly down while the complex treatment still have a very interesting billing structure. What that means now is that we have a problem for small clinics with few highly trained professionals because to be staying in business, they need to move to highly complex treatments. But at the same time, they have the staffing, they have both the number of people, but also the education level. And that's a dilemma that we are helping them to resolve. And the clinicians who are forced or also want to go into this direction when asked about what's the most important thing that you need, it's motion management. Motion management, we have, of course, on the Unity and the MR linac, but we are now bringing it very shortly also to the CT linac. So let me switch gears. That was the background why we are doing what we are doing. But now focusing on what we are actually doing. So first, what are we spending? And here you see an overall gross R&D spend as a percentage of revenue developing over the last few years. And you see that we are committing ourselves as [indiscernible] was already also showing to a 10% R&D spend over sales. We believe this is above medtech average, and it is also at the right level to ensure that we have enough innovation funnel to drive a market-leading position. And I'm, in my role, of course, Chief and Product Technology Officer always trying to say, let's make sure that we invest enough. But this, I believe, is enough. And why do we believe that? And you see focus on 6 -- or 5 different topics over the last few years. So we didn't start just a few months ago, this has been going on for some time. First of all, we have focused the share of our most important investments on core products. So saying what are the top 3, 4 products that we absolutely want to be leading in that we need to be cutting edge. That means that we shift the resources towards these vital few. We also looked at what are the real top requirements from our customers. Not what we hear is nice and is great, but what is really driving our customers overall performance. And that can be clinical, but also very often, it's nonclinical. It's about how easy can I service a linac. How easy is it to upgrade my software. How fast is it for me to have a service that is proactive instead of reactive, all these kind of things. What we have also been doing, we have said, we've taken some tough decision saying we have to have more focus also in the number of our development sites. So smaller sites, we decided to maybe not go continue there, but co-locate people, bring them together also in view of having to have to work closer together across different products, and therefore, not only get people closer together, training them, upskilling them, making them sure that they have the right competencies, forward-looking with data science, AI, next to the core of mechanical and electrical engineering. And overall, we have also done steps for process simplification. Looking at this company of the size of Elekta, we might have had a few processes that were a little bit over the top also make it easier to innovate faster. We shifted innovation also to cost innovation, taking out costs in our bill of materials, but also the cost to serve. And we have been, for the last few years, also shifting resources and capabilities towards software development because without the software, the device will not be up to date anymore. So want to go into 4 different areas now very concretely. So this is not a switch to Elekta portfolio as it is and will be very soon. Starting with CT linacs. I said, this is the highest priority for us right now. I will also share some exciting developments in the Unity, in the MR linac space. I already alluded to that we can do now much more efficient treatments with the Unity. A key enabler for that is treatment planning, both in online adaptive, making it fast, but also as a stand-alone departmental software solution. And of course, oncology information system is a data backbone for the oncology departments and we are upgrading our offer there as well. So the CT linac. What you see on the left, driven by increasingly adaptive treatments, now motion management come back to that. And important for us to be able to offer this as an upgrade option to our installed base that people can do this in a gradual way without having to throw out the old linac when it's not necessary because of old age, and continue to work with what they have and build on that. So what we have already today is our online adaptive Evo. And we already have the iris supported what we call Iris, which is the brand name for our next generation of imaging algorithms for pelvis. So what's coming in, in the next 12 months. And these are all for me, part of one big launch phase or wave, maybe you should call it wave. First of all, on the top row, you see 2 imaging-related ones. First one, next-generation AI Iris; second one, real-time motion management, which is really something new; and below, you see C&D, which are workflow related, integrated console, a software package that will make or is making workflows in the therapy room much smoother less clicks, fewer clicks. And we are also releasing a new integrated table with 60 versatility that will go hand in hand, and therefore, this line with the integrated console. And let me double-click very quickly on each of those 4. Iris, we have released Iris for pelvis some time ago and we are deploying it. That's why I call it scaling to our installed base and upgrading or selling new Evos with this functionality. What is now new is head and neck and brain, also very important body sites for radiation therapy, which benefit now from the increased image quality of Iris. But next to that, and therefore, not so easy to show in this nice pictures, that we are also increasing the imaging frame rates, roughly doubling them, a little bit less than double. That's important for image acquisition speed. And we're enhancing the quality of these [indiscernible] to a level that you can directly use and import these images in the treatment planning. And that's a little bit more technical, something called [indiscernible] units where you need to have electron density that are accurate enough to be able to be used for the dose absorption calculations. It's really exciting. And this is, of course, only the beginning of what will come because we are looking at motion management, artifact reduction, gas bubble artifact reduction and so forth. This is a very interesting road map also an upgradable road map for the coming, I would say, 5 years at least. This one, I am personally really excited about. With Unity, we brought 3D real-time motion management to the RT space. And what is now happening that we are enabling in a different approach because it's not MR, it's CT, the same concept to be applied also on CT linacs. So what is it? It's real-time 3D tracking of internal organ motion. So not looking at the patient from the outside and seeing that the patient is breathing and then trying to say, okay, what's happening inside the patient, but directly tracking of what's happening inside the patient using existing X-ray kilovolt [indiscernible] CT imaging infrastructure. So no need for new hardware. You can use what you already have. And that makes it different from some competitors who are adding extra X-ray beams to the patient room, but that means modification, very expensive and also, of course, something that, yes, is very expensive for people to do. This is a software-driven innovation. This is going to be available to our existing installed base. We have chosen prostate cancer as the first release application. Motion management is very specific. Motion of a prostate is different from the breathing motion of a thorax. It's different from the motion of a pancreas. So we have to be body site specific. Prostate, first release, others will follow. This is a key enabler for the reimbursement options that I was referring to earlier and that Arti will also talk about a little bit later. This is going to enable with existing equipment on the device side our customers in an easy -- rather easy way, and you see this diagram on the right, this is the user experience, and this looks very similar to what we have introduced to comprehensive -- in comprehensive motion management to our Unity as well. So you see also convergence of user experience. And this is a foundation for a new innovation path on real-time motion management in CT linac that we are the first to introduce. Okay. Let's switch over to the integrated console. So more to the workflow inside the therapy delivery. Integrated console is a software application. You see here a screen shot of one of these integrated console interfaces. And what it does, it is guiding the workflow, helping the technologists where are we -- why I'm in the workflow? What's my next step? It has integrated imaging tools that -- where you don't have to change between different screens, which is image acquisition, the registration of the image and then later the review of the images. Obviously, these are a large viewing area, as you can see, and it also enables continued system monitoring, the quality assurance of the system, is my linac up and running and performing in the right way. And it has interactive communication tools. This has been CE approved already for our Harmony linac. And it's a pleasure to say that we have been starting to treat -- or actually our customers first pilot site has started to treat customers with trial treat patients with this business solution as we speak. So this is not future. We are piloting it on the Harmony. We are going to learn from what is going to come from it, feedback, how can we tweak it, make it better. And then we will have a broad release on the Evo next calendar year, and that will go in conjunction with the integrated 60 table because these innovations best go hand in hand. And what I'm not talking about here, but what is actually also very relevant that on the back end, we have a new and modern interoperability API, so application programming interface, that will make access to our linacs from third parties, whether that's surface-guided radiation therapy companies or others more harmonized, easier, much -- in a modern and controlled way. So there's also an interoperability play that we're doing here. 60 table. Let me be brief looking at time. As I mentioned, it is increasingly integrated with software, the integrated console the integrated table hand-in-hand, higher, better economics for patients. We have better modern user interfaces, the handheld controller for the technologists, who do this every day many times. So for them, small improvements are really important. And this also has the value proposition of a quicker and more accurate patient positioning that's really relevant if you want to apply stereotactic radiation surgery or stereotactic body radiation therapy. These are the highly reimbursed kind of procedures that people are flogging towards. CT linac. Now let me go into a little bit more detail on the Unity. Unity has been around for roughly 6 years. And we are now introducing a new package called Uniti Pro, which is going to be a step change in MR linac productivity and customer return on investment. What we already have today, many enhanced MR imaging packages that are helping to make better [indiscernible] faster. We have introduced comprehensive motion management, making it easier to gate and to make sure that motion in the body is being well monitored and then also managed. What's now coming up is, on 1 hand, what we call visual guidance, which is a breathing feedback loop for patients to give them help, how deep do I have to breathe in? Do I have to hold my breath? Makes it easier. It increases the productivity of treatments because patients are more compliant. And on the right, AI-enhanced automation tools, MR-based auto segmentation, GPU-enabled dose planning and some enhanced tooling. But what this enhances is that on the left side, you see that a typical treatment time on a linac and Unity was roughly 45 minutes, sometimes 50 minutes. But basically, the hospital had to plan for 1 hour per patient. With this, we can predictably go for bladder and prostate cancer patients, not for all, but for these 2 treatment slots of 30 minutes. That makes 2 patients an hour. And for hospitals, who are looking at productivity and the number of patients they can treat per day, per year, this is doubling the business case, and Arti will talk about it a little bit more. But what's also happening next to the productivity, that roughly 6 years after we introduced Unity, we are now also seeing clinical evidence of efficacy superiority coming in highly profiled trials to the market. On the left, you see a study called United, which was recently published in the Lancet Oncology, so the highest-profile oncology journal that there is that basically says with MR-guided elective radiation therapy, you can reduce the size of the volume you radiate in the brain for aggressive glioblastoma patients by 40%. And coming back to Mr. [indiscernible] idea, the brain is very sensitive. So you want to radiate only very precisely the tumor. 40% less means significant reduction of side effects, and side effects in the brain mean the severe mental and intellectual deterioration. And at the same time, survival rates stay the same. On the right, it's another one, very different application, where also now it becomes evidenced, not hypothesis, but evidence based that if you have prostate cancer, you want to avoid erectile dysfunction side effects that with this technology, very precise radiation, you can reduce the amount of erectile dysfunctions by roughly a factor of 2. Again, not a 5% or so, it's a factor of 2 reduction. So significant advances. And we have other examples where we look at pancreatic cancer, Memorial Sloan has recently published an article where they said, in their first studies, they show that the 2-year survival rate for pancreatic cancer, very difficult to treat, has gone up, the 2-year survival rate has doubled, again, a factor of 2, not a 5% or 10% increase. So this evidence will make this attractiveness for this kind of treatment significantly higher. At the same time, the productivity, so the complexity that you have to -- the cost of complexity is becoming manageable with 30-minute treatment slots. So there, we believe that we're really entering, with Unity Pro, a second generation, a second phase of our MR linac product. I will be very brief in this one. Treatment planning is an example where Elekta was not cutting edge a few years ago. But with Elekta on planning, we are there right now in a very competitive situation with any competitor that there is out today. You see evidence here with talk about a 10x improvement in GPU speed, but we're also putting a lot of effort to make it easy for our customers to upgrade. And here, you see a reduction of the upgrade time from 4 hours to 30 minutes. This is important because these 4 hours or 30 minutes is the time that our customers lose in productivity in the clinic. We have upcoming releases for remote collaboration. In online adaptive, the doctor has to prove plans more frequently than in the past, and the doctor does not -- cannot come to the treatment room all the time. Therefore, we make it easier from remote to not only do the plan review, but do an approval that is also then used for billing. So it's documented. And we introduced performance planning, which is our entry point for people to say, we don't have the full -- we don't need the full range of what Elekta One planning can do, but we want to do the hard core increase in the planning speed that is shown here with 10x. So we are very bullish about this and also because this is not a stand-alone software offering, which it can be, but when you talk about online adaptive, this is the software that's driving the brain of the online adaptivity while the patient is in the treatment room. The last slide I want to show is our Elekta oncology information system. We have a large installed base. It has been around for a long time, and we have gotten a lot of feedback and getting a lot of feedback from customers saying, you need to make sure that this stays up to date and it feels a little bit dated. So we are putting a lot of effort right now into performance enhancement where we say we reduce software latency. We make the scalability to very large centers that have 20 years of data from patients. And we also, of course, invest in continuous future enhancement like compatibility and integration with online adaptive. Workflow, we are integrating now very focused our different offerings in Elekta ONE to make it faster, more automated, fewer clicks. We are working on better intraoperability with third parties. For example, EMR providers and I mentioned already the improved planning to treatment. And under the hood, which is not visible to our customers yet, we are working very diligent to make sure that we have an updated technology stack that's fit for future. Also here, lower installation efforts, but also providing the foundation for scalable Software-as-a-Service delivery moving forward. And I think Arnaud and Ardie will talk a little bit how important that is for also our money monetization with Software as a Service model. We have now by semiannual releases, so twice releases, we have -- we have had 6 releases over the 3 years, and it's a continuous improvement effort. So here, there is still work in progress, but there is a significant improvement of what we can offer to our customers. So the 3 points I want you to take away. We have a commitment to spend 10% of R&D -- of our revenues in R&D. And at this, it's appropriate to make sure that we have a market-leading portfolio. We also look at our focused innovation agenda and also look at more what is most important to our customers. And as we speak today, the most important, the #1 priority of our customers is increased productivity without losing access to complex treatments. And this -- we are committed to have a predictable and fast release cadence with upgradability and we have shown you a few of these highly impactful releases that are coming in the next 6 to 12 months. So this is not that's 24, 48 kind of outlook. These are committed road maps that we will deliver on very soon. And with that, I hand back to Peter.

Thank you, Christopher. So we are coming to the first break. A few things. Online, you can post your questions. I think it's on the right top corner for the Q&A that we're going to end the CMD with, so you can start doing that already now. So the time is now approximately 3:00. So I expect everyone to be back in their seats at quarter past 3, and that goes as well for you online. Then we'll start the next session, which is about the market areas and then ending with financial. So welcome back in 15 minutes. [break] [Audio Gap] First one is radiotherapy is seen as a cost effective and well reimbursed treatment modality by the market. It's well supported by public health care systems even if there are, of course, some challenge like any public as care systems, but it's pretty stable, it's growing, and it's dynamic. The second aspect of the market is its appetite for new technology. As we all know, we launched Evo first in Europe. I'm going to share with you how we are doing. So the market is -- the barriers to enter the market are there, but they are not as tough as they can be in other part of the world. So it's a good platform to launch a new technology. The third element of our market in Europe is its geographical mix between Western Europe, which is a mid-single-digit market growth, mostly driven by a replacement cycle. And the eastern part of the European region where we see double-digit growth potential, mostly linked to capacity expansion, infrastructure investment in the market. So in summary, if we zoom a little bit on the market, the market is stable, is growing and is a technology-driven market. Now turning to our performance in Europe. Over the last 5 years, we have seen consistent growth of Elekta in the market and now Europe, as a region, waits for 32% of the overall performance. There are 3 -- it's a good growth, but it's not the ambition we've got. We believe that we can grow faster and more profitably in the region. We have -- we are going to focus on 3 main commercial priorities in Europe. The first one is the upgrade. We want to capture the upgrade cycle. I will detail with you what's the opportunity in front of us in the next slide. That's the #1 priority. There is a replacement cycle in front of us for CT linac that represents a major opportunity and EVO is absolutely well positioned to capture this opportunity. The second one is to accelerate our growth in recurring revenue, notably service and software, and software as a subscription model as SaaS. And the third one, we have to step up our ability to execute better. We are doing well, but we can do better, and we have to do better. So those 2 factors will -- those 3 priorities, sorry, will help us to keep growing in revenue, in market share and in profit. So that's 1,000 linacs that are open for replacement. So as I shared the market today is a market with around 3,900 linacs installed, well known. We know where they are. And as an average, the customer keeps the system 12.5 years before they think about replacing their system, their CT linac. There are 1,000 linacs that have reached 12 years of age, between 12 and 17 years, 1,000 in the market. So this represents a unique opportunity for us to position Evo as a replacement of choice for them as well with the adaptive option. So that's the biggest opportunity we've got. The good news about it is that we know where they are. We know how they are going to make this acquisition, via tenders or via direct procurement. And it's a sizable market that we can approach pretty simply for commercial organization. That's the #1 opportunity we've got. And we believe that Evo has the best potential to capture this opportunity. Now in parallel, we have seen a very interesting growth in our recurring business during the last 3 years. And today, we have increased by 5 points our recurring business, so the service business and the software business. The service business is mostly linked to renewal of our installed base, new contract, simplification of our offering, price increase on our service contract. And the second one is the software penetration that was linked to the Evp launch. So plus the new acceleration we've got in SaaS. So it's one step. It's a very interesting base business for us because it's highly predictive in terms of revenue, 48%. We can do better. Jakob shared that it's 45% at group level. Here, it's 48%. So it's highly visible in revenue, it's high quality of margin, and it's highly predictable. So no big surprise. It's a recurring business coming every year. So we believe that we can really create much more value coming from this source of business. But all those 2 priorities, the replacement cycle and the increase in revenue generation from recurring business are strong priorities, critical priorities, but nothing will happen with a step-up in commercial execution. So we have reorganized the company. We have reorganized the region Europe commercial sales force. We have delayered the number of managers. We have reinvested in new salespeople, stronger talent, stronger salespeople who are here to hunt and capture market share. So we are raising the bar in the sales organization, much more disciplined as well in terms of pricing. We have simplified our portfolio. Today, the portfolio is much more visible for the customer and for our teams, with much more price discipline on average selling price. So we are raising our price in average selling price. We have as well a big mandate to increase our price when we renew the service contract every year. So we try to have this discipline of systematically renewing and avoiding multiyears of service. Every year, it captures a growth in terms of revenue and directly profit. We have changed our order fulfillment organization. So when we sell a system, it takes time, of course, before we install the system and the system becomes clinically available. So we have analyzed all the steps that we can improve in terms of cost to serve, in terms of customer satisfaction. So we are trying to reduce the time to install, increase the customer satisfaction in this journey of installation. And lastly, we have a big opportunity in terms of lifetime recurring revenue and revenue of an account. So every -- we are going to change the way we see our own account instead of going just to replace an invoice service contract. We take the account as a whole with an account team made of service team, order fulfillment team, application specialists and salespeople who are here to maximize the profitability of every account by upselling, upgrading, securing retention and maximizing the value per account for the company. So it's a question of volume, but it's more a question of profitability per account for us. So with all those priorities, so the replacement cycle, the recurring revenue from service and SaaS and with this uptake in commercial excellence, commercial execution, we are going to -- we have an ambition to -- on the base of the 8%. We had a very strong year last year, 8%. So this is the effect of Evo launch in Europe, 70% of our placement and the uptake in software. We have delivered this strong performance, and we believe that we can deliver a strong single-digit growth over the next 3 years. Europe will remain a core contributor of the company. And with this reinforced discipline, the performance can offer us potentially upside. Thank you.

Thank you, Arno. Thank you. So moving from a region which has delivered well on the launch of Evo, moving to a region where you have a great potential based on the launch of Evo. We will have our Head of Americas, Ardie Ermers. He started in the company in 2022 as Head of Europe, and then he moved to U.S. and heading up that organization. Before that, Ardie had a few senior positions in Philips and spend quite a lot of time during that period in U.S., so he has that background. Again, so he will talk about the turnaround, how we regain our position in U.S. through product launches.

Thank you, Peter. Good afternoon. So after winning in Europe, now we have to win in the U.S., one of the biggest markets for radiotherapy. And I'm going to explain how we're going to do that. First of all, let's talk about the market. A lot of this is known. But as you saw in the graph, 25% of the installed base are 35% of the value. This means high profitable business. So it's really important for Elekta to perform in this marketplace. This is where you get maximum value for the solutions that you offer. If you characterize the market, it's a replacement market. You don't see a lot of greenfield new hospitals being built. It really is about holding on to your installed base and making sure you have competitive flips. The other characteristic of this market, and you've seen this over the years, it's really been driven by paper fraction, which is really counterintuitive of what we are developing in this space. More fractions means more payment. That's not good for the patients. You can imagine if you're a patient, then you have to go to the hospital 30 times to get treated. When you know that there are better solutions out there where you can get treated in 5 fractions or like Christopher said, maybe even in 2. So this is our goal to make sure that, that becomes accessible in the marketplace. Also in the U.S., you see a steady decline of the number of fractions. And you wonder what's behind this. And you see some of the more academic-based institutions going to SBRT treatments. In some cases, 30% to 35% is SBRT. Now these are complex treatments, and they are very sophisticated. So you have a lot of people that need to be in the room in order to perform these procedures. That's a barrier to get access to adaptive therapy in the rest of the market. So the goal for Elekta is to make this very simple so that you don't have to be at NYU or [indiscernible] or MD Anderson to perform these kind of treatments. And then last but not least, you've heard about the reimbursement challenge. ASTRO even published on it and said, we have to focus on improving the reimbursement for radiotherapy. The conventional treatment IMRT method is under pressure, which actually creates a great opportunity for us at Elekta. And let me explain to you why. Over the last 10 years, we've seen constant cutting and cutting on the reimbursement per fraction on IMRT. This year was really chaotic because they launched the new billing codes. They really reduced the complexity of the billing codes. But they also said there's another cut on IMRT. Now what they did not cut is SBRT. And like I just explained to you, the movement of the market is towards SBRT treatments, treatments in 5 fractions or even less. And if you do this in the right way, and you actually get the SBRT code and the adaptive plant build, there is an upside of $10,000 per patient. Think about that. If you go this route of adaptive radiotherapy, you will see a $10,000 improvement per patient. So this is a great opportunity for us because, as a company, we have invested and committed to adaptive radiotherapy. And to quote one of our key collaborators at Kettering Health, which is not an academic medical center, they basically said 2026 cuts brought to pain, and he said, Elekta brings the aspirin because we are helping to keep these customers viable and able to grow. So if you are in a community-based hospital or even a freestanding clinic, you will need to go to a solution that can do adaptive therapy. And this will trigger replacement of these linacs. So if you combine SBRT billing with adaptive workflows, you have a chance to survive. And guess what? This is the strength of Elekta. But let me bring you back to last year. Virtually out of Seattle was 3:00 a.m. for me, and I talked about hope and promise. We are not happy where we are in the U.S. As you can see, the percentage of our share in the company is way too low. We need to win in the U.S. And Jakob reminds me on a regular basis that, that needs to happen. Now in Brachy and Neuro, we've actually held our own very well. We are leading in this space. We saw good growth in Brachy and Neuro, remind you that it's a high profitable business, but our Achilles heel has been the linac side. And as you saw to Dave and Christopher, the commitment to address this portion of our business is rightfully there, and therefore, I'm going to talk about 3 commercial strategies to win in the U.S. The first one is to commercialize Evo and Unity into this space of adaptive therapy. We've done it in Europe with proven results. We are doing it in the U.S. And I show you how we do that. The second piece is get the installed base growing again so that you can attach service because service agreements are very profitable for Elekta. But if you can increase your installed base, you also need to have a good attachment rate. And I'm happy to report our attachment rate in the U.S. is over 95%. So if we grow our installed base, we attach good service agreements to those, and we will see obviously that profitable revenue coming in. And last but not least, and this is the secret to the success of Adaptive is to start combining this again with a world-class treatment planning solution. And that really is the proxy to go to adaptive because if you're going to condense these workflows down 2 minutes, you need to make sure that the solutions that you have implemented in your department are world-class and you can trust. And that's our Elekta ONE planning solution. So let me unpack the first priority. We listen to our customers. And this is what they said. I would love to go to adaptive therapy. We see our friends at the academics do this, but I don't have the staff for it and it takes way too long. The averages that we see is 35 to 40 minutes. I cannot afford to put my patient on the table for 35 to 40 minutes. This needs to go quick. So what has Elekta done? We've reduced this total workflow to 15 minutes, which fits in the standard treatment slot. So you don't have to make a sacrifice. You don't have to start planning for 3 treatment slots in order to do an adaptive case. The second thing is it needs to be simple, autonomous. It needs to be intuitive. I cannot have 10 people in my treatment room. This needs to be done, and we've seen examples now in Europe with 1 physician and 1 physicist. And last but not least, we call it adapt for a reason because in some cases, the tumor does not respond so you don't need to adapt. So we have not created a black box. We have created a completely open architecture, adaptive workflow, where you can decide if you want to adapt or not on the fly. That's really crucial because you don't know which patient is going to benefit when they're on the table. We call that Evo with Iris, and that's why we believe that we're going to start taking market share in this space. The second portion is you've seen this over the years, MR linac has a great future. It is the stall worth of radiotherapy. You can actually see the tumor as the dose is being delivered. But also the feedback was, yes, but mainly academics use it. And the reason for that was because the treatments were complex and they were long. So what we heard from them is the investment profile of the Unity is not attractive for us. And while academics have found money to invest, we, as integrated health networks, we feel the business case is not strong. Now enter Unity Pro. We have now enabled 2 patients per hour, which means that the average amount of patients that are treated on the Unity go from 300 per year to 600 per year. That means that the return on investment of the Unity goes down to 13 months, almost equal to a linac. That opens up the door and we start to see evidence that institutions like Providence and institutions like Orlando Health are starting to put Unities in their flagship hospitals. Now that opens up a big market potential for us. On top of that, marketing in this market is really -- marketing is really important in the U.S. market. If you can go to prostate cancer patients and say, come to my institution, and I treat you in 2x 30 minutes, that opens a lot of pull. Instead of them flying to New York or going to Houston, they will come to your local hospital and get treated for prostate cancer, which is the highest volume cancer in the U.S. and globally, actually. And then last but not least, unlocking new treatment methods. In the past, you would not do liver or pancreas cancer on linac because you can't see. What we saw in our superiority studies is now you can actually treat pancreas and liver, which open up a complete new revenue stream for the hospitals. So the combination of investing in adaptive therapy on CT and MR unlocks a new market potential, and we're starting to see the evidence that this is working. So by focusing on our installed base, last year, I talked about the aging of our installed base in the U.S. This is now a great opportunity for them to replace their older linacs and start upgrading to Evo. And we've seen the evidence that, that is happening. Second question you asked us, is this really competitive? And we go up against our competitors, and we show them how we do adaptive versus what they show us and we win hands down. What has that done for us? Last year, last year, we had a 30% solutions order growth in the U.S. based on this strategy. Double-digit Evo orders and twice as many Iris upgrades because Iris unlocks the imaging potential. And then most importantly, again, starting to look at [indiscernible] flips, taking MR linacs out and putting Evo's in. So really nice that we are showing these results. As you know, first, you have to get the order, then you need to get the install. So we'll start seeing that pull-through in our revenue in this coming fiscal. Second part of our strategy was to make sure that the installed base starts growing and start pulling through our service. These are obviously the key drivers for profitable growth. And we believe with a higher installed base, we also will see a better service revenue. On top of that, we've been abl to drive better price increases. We obviously saw the inflationary pressures, but we've been able to get a higher price for our service agreements also because this is a very sophisticated technology. And our customers are starting to move away from in-house services and putting it back in the hands of Elekta. And last but not least, Software-as-a-Service. We've been able to really increase the value of our Software-as-a-Service contract. We move away from standard maintenance and service, and we moved them to a SaaS agreement. And lastly, we talked about what is so secret or what is so special about your adaptive workflows. The key of all this is a world-class TPS solution. We saw a 50% uptake of TPS in the marketplace. Why is that? Because now we have world-class workflows that are really, really fast and of high quality. We're the only 1 that has [indiscernible] dose planning, but now we can do it fast. And on top of that, it's very easy to install. So what's the commercial effect of attaching software to hardware, obviously, you boost your margins. And last, but not least, once people are comfortable with TPS, they open the door to go to adaptive treatments. So the barrier to go to these complex treatments has been lowered tremendously with our software solutions. So like I said, we are not happy with the position we are in, in the U.S. We've been needing our order book, and we needed to innovate on the CT linac front. And as a result, we saw a 6% decline last year. But based on the fact that we saw a very strong order intake year that will translate to sales revenue, we expect a mid- to high single-digit revenue growth CAGR over the next 3 years. So with that, I hand it back to you, Peter. Thank you so much.

So let's move to the last region, which is China. We have prerecorded video from Aming who's been heading up region, China since 2017 before being with Elekta for almost a decade. Before that, he had senior positions within Siemens. So he will bring us back to the market share, the leading market share that we have in Elekta in China and how we'll keep that. But also leverage from the recovery of the market. So you will see that on the video.

Hello, everyone. After the Americas and Europe, I will briefly talk about China. China is not on a relatively transparent market. We have a good visibility on volumes, competition and policy. At the same time, demand in China is driving quite differently than other red therapy markets. make 3 points. how the market is evolving, how we are positioned in this market and what this means for our priorities. Starting with the market. China represents around 10% of the global IT market in value. The market is now recovering. Before this, the anticorruption campaign reduced over volumes over the past to years. And revenue followed a wise delay, 2025 was a turning point. Based on updated data, we saw over 250 linacs sold in 2026. We expect around 10% growth, reaching over 270 units. There is still a clear unmet demand. Today, China has about installed news. Based on a cancer instance, the need is closer to 5,000. What has changed now? How this demand is being unlocked? Motor-based program is being rolled out more systematically with at least 1 round expected per profit this year. It increased price and pressure, but it allows more hospitals to adopt retinal therapy and the creators like secret over time. In parallel, the imbursement is also improving. [indiscernible] for key advanced applications like PRT and [indiscernible] has been increased. [indiscernible] adaptive rate therapy are also included. This improves the financial return for hospitals. Growth is returning. At the same time, the market is becoming more competitive, and [indiscernible] value becomes more important. [Audio Gap] Development. Elekta remains the [indiscernible] with around 40% market share by revenue. This reflects our strong market position, supported by our focus on the higher value segments. So we entered this next phase from a position of strength despite [indiscernible] marketing volatility. China remains a key market for Elekta. As the market recovers and the competition intensifies, our goal is clear. We will not only defend our leadership, we will have [indiscernible], we will do this through 3 key priorities: accelerating organization, strengthening our ecosystem partnerships to capture that [indiscernible] value and deliver a China-tailored portfolio offer. Let me walk you through this. First, localize R&D and manufacturing. What sets Elekta apart is that we are the most comprehensive radiotherapy player in China, from brand to body, from [indiscernible] therapy to Brachy therapy, and the form core treatment to digital management of radiation oncology departments, we offer hospitals everything they need to deliver high-quality cancer care in a sustainable way. We support this, we continue to deepen localization across our portfolio and across our supply chain. This includes full line local manufacturing and strong software R&D in China. Second, life cycle management through partnerships. We have the largest installed base in China, value goes beyond the initial system sale. It comes from upgrades, software and service. We strength partnerships across the ecosystem. They work closely with the leading medical centers to accelerate clinical adoption through collaboration, training and education. We also partner with local suppliers, including [indiscernible] mobilities. As the market recovers, the value will increase come from life cycle management beyond the initial unit sales. Third, China tailored portfolio offering. China has diverse and evolving clinical needs and increasing focus on both access and the quality of care. To address this, we developed China-focused products that increase local clinical workflows and requirements. With our local manufacturing, R&D and ecosystem partnerships, we correspond quickly to this lease. Elekta [indiscernible] is a big simple, developed and manufactured in China is a one-stop intelligent adaptive radiotherapy system solution, combining online for the imaging guidance, the [indiscernible] treatment. In adaptive radiotherapy, we are clearly a need in China, recognized by key customers, key operators and the government. In fact, [indiscernible] is the only project selected interregional level for this technology, led by Elekta together with needing customers, including PK University, People's Hospital. In the first half of the fiscal year, [indiscernible], we are still impacted by the anticorruption campaign. We saw improvement in the second half of the year and ended the year at minus 6%. As the market recovers, we will tend to meet single-digit growth, supported by these priorities. To conclude, [indiscernible] therapy market is recovered with a strong long-term potential. Elekta is the #1 player in China, in the market with our focused strategy, primary positioning, deep organization, strong partnerships and the take the offer with leadership and adapt [indiscernible], we are well positioned to deliver sustainable and profitable growth in China. Thank you.

Thank you, Anming. So we're moving to the last presenter, and that will be our CFO, Klara Eiritz. She joined Elekta in March. Before that, she have held numerous senior positions, as an example, CFO of Volvo Construction, CFO of Ericsson Europe and Latin American region as well as numerous of positions within Sandvik. So her part will really be to close the loop, give numbers behind everything that has been told today. So with that, Klara, stage is yours.

Save the best for last, right? Great. Okay. So let's spend some time on the financials. And I'm Klara Eiritz, and I am the CFO of Elekta. And as Peter said, I started 3.5 months ago. I have a background from a large technology-driven global Swedish companies. Peter mentioned them, I think, Sandvik, Ericsson and Volvo. But I'm really happy to be here at Elekta and be a part of this exciting and important journey that we are on. Of course, I have experience of financial management from the companies that I worked on. But maybe, in particular, I have experience from working with performance management in a decentralized company and with a decentralized operating model. So that's an experience that I look forward to bringing into the journey that we are embarking on at Elekta. When I joined Elekta 3.5 months ago, my first focus was the balance sheet. Spend a lot of time on the balance sheet review that, as you know, resulted in impairments and write-downs in Q4. last year. But we were making changes to our strategy. We wanted to make sure that our balance sheet reflected those changes. And also from a CFO perspective, wanting to make sure that we have the appropriate provisions for receivables and things like that. So that was my first priority. We also wanted to get that done, put it to the side to be able to direct our efforts towards the future and the important task that we have at hand here. Then, of course, we've also spent a lot of time preparing for today and especially maybe working on the financial targets, of course, together with Jakob, the management team, but also the Board to make sure that we have relevant and ambitious financial targets for Elekta going forward. Okay. So for the next 20 minutes, I will spend time on 3 different topics. I will talk around quality of earnings and what we are doing to improve the quality and the integrity of our earnings at Elekta. [indiscernible]. Jacob talked about them earlier, but I will go into a little bit more detail. And then I will say a few words on our approach to capital allocation. All right. So let's start with quality of earnings. Quality of earnings has been an important part of the ongoing turnaround and the reset and stabilize phase that Elekta has been in during the past year. And therefore, I think the operational improvements listed to the left here are not -- or they are highly familiar to you, so nothing really new here. But by addressing these, we believe we improved the integrity of the company and the integrity of our earnings. The first topic is order book quality. We believe in a high-quality order backlog that can act as a strong predictor of revenues to come. Second item is the balance sheet growth ambitions and our capital allocation ambitions. Thirdly, we believe in keeping R&D capitalization on a balanced level. And last, but not least, I will say a few words on the positive P&L effects that we are seeing from the new operating model that also Jakob talked about earlier. We also aim to increase transparency around our earnings and financials by establishing or setting clear midterm financial targets and improving transparency and communication around our cash flow. So I will go through the items on the left-hand side here, one by one, and then come back to the transparency part when I talk about the financial targets. So order backlog. By applying a firmer interpretation of the criteria for order recognition, we aim to improve the predictability of our sales by improving the quality of our order backlog. We want the orders we take into our backlog to have a high probability of turning into actual sales. And we want that to happen within a not-so-distant future. In other words, we want to have a strong link between orders and revenue. And for the order backlog and our book-to-bill ratio to be solid indicators of growth to come. That has not been the case at Elekta in the past. And as you are aware, the order backlog had to be written off quite substantially in the past 2 years. Right now, we have about SEK 34 billion in our order backlog, which equals around 2x our sales in '25, '26. And if you remember, when we released our Q4 report, we also had a rolling 12-month book-to-bill ratio of 1.04, which is fairly aligned with our sales growth, we'll come back to you shortly as well. Okay. Next item on the list, balance sheet. With the R&D impairments and other adjustments to the balance sheet, in a total of about SEK 2.5 billion, we now believe that we have a balance sheet that is well aligned with our current business assumptions and our strategy going forward. We have a balance sheet that will help us build our commercial success and deliver high-quality earnings going forward. This topic is also, of course, closely related to capitalization of R&D. Elekta comes from a history of very high levels of capitalization versus amortization. And you can see that in the left part of this graph, if you look at the historic years. This has supported EBIT, but it can also be risky. And part of this high capitalization levels was in the end what had to be written down in Q4 last year. Going forward, we will more or less keep capitalization on the current levels. And for '26, '27, we expect capitalization and amortization to be roughly in line. Going forward, it could even be that amortization will slightly surpass capitalization as we have important product launches in the pipeline and those have to leave the balance sheet and be starting to be amortized. As Christopher also mentioned, gross R&D expenditure will be around 10% of revenue going forward, and we believe that this is an appropriate level for us to deliver on our innovation agenda going forward. Keep in mind the new operating model has given us a more efficient and focused R&D muscle that will allow us to drive innovation with greater velocity. And I think this is important to keep in mind also when you compare the 12% with a 10% going forward. All right. Last item on the list. The new operating model or the new decentralized operating model that was presented by Jakob as in the beginning. We have moved resources and accountability from group functions to the regions and thereby strengthening the P&L accountability of the people who know our business and our customers the best. By delayering and simplifying the organization, we remove cost, but the main benefits of this model are around accountability, decision-making and empowerment. And these effects can already be seen in the P&L. On this next slide, we can clearly see the lower cost associated with the new delayered operating model. As previously communicated, it will lead to SEK 500 million plus in annual net run rate savings, of which most is in OpEx. The cost reductions have come through perhaps a little bit faster than what was originally expected, and we see positive effects on cost and spend in general as cost-related priorities are now made with a full regional P&L in mind. And it's interesting because I've seen this play out at some of my previous places where I worked, and I've seen the power of this way of doing things. When you have an end-to-end P&L responsibility rather than a fragmented P&L, that is a powerful thing in an organization. So it's interesting to see that play out also here at Elekta. I also want to emphasize that the reduced cost levels come mostly from decentralizing and reducing what used to be group function costs. It's not about decreasing our customer-facing resources. On the contrary, these resources have actually increased during the reorganization. So the decrease in selling costs, for example, that you see here is not to reduce sales force, but rather a reduction in the central not customer-facing organization. Okay. So let's leave the quality of earnings for now and move on to the financial targets. And before I dig into the midterm financial targets, I want to say a few words on the outlook for this fiscal year, '26-'27. Jakob went through this as well. So there's nothing really new here, but I want to go into a little bit more detail. Adjusted for currency, we expect sales to grow 2% to 4% driven by growth in all markets or all regions and services. We also expect adjusted EBIT to grow and land somewhere between 12.5% and 13.5%. This is driven by pricing effects, Evo commercialization. In the U.S., of course, we talk a lot about that, but essentially, all over in our markets, this is ongoing in different stages. And then, of course, lower cost levels due to the new operating model that I just talked about. So this is in line with what we said when we released our Q4 report, but a little bit more details and a little bit more precise perhaps. All right. The midterm financial targets for '28 to '29. As Jakob previously said, we expect to reach mid-single-digit growth in terms of compounded average growth rate or CAGR in '28, '29. This is measured, as you know, as CAGR over a 3-year period starting in '25, '26 and ending in 2029. As Jakob also mentioned, we expect sales development -- or sorry, the expected sales development indicates a gradually higher growth rate towards the end of the 3-year period, and that's driven by product launches, software and services expansion and growth in the U.S. As for the EBIT margin, we aim for 14% to 16% in '28, '29, driven by improved gross margin and leverage on the lower OpEx levels. When looking at EBIT, keep in mind that EBIT in '25, '26 was supported by R&D capitalization being higher than amortization. So the EBIT was actually sek 11.2 million, and this is really the level we start on when we set our targets for the future. For cash flow, we target cash flow before dividends as a percentage of sales of 10% in '28, '29. And this would create space for us to continue to deliver solid shareholder return, but also invest in Elekta's operations. So let's spend some time on growth. On this slide are the growth ambitions for Europe, U.S. and China as presented by Ardie and Anming. And it's these ambitions that add up to the group target of mid-single-digit growth, along with, of course, an assumption of mid-single-digit growth for the rest of our markets and countries. So that's included, of course, in our group target. But today, we're just talking about these key markets. We expect continued solid growth in Europe as we continue to grow the adaptive base business and scale services and software. The U.S. is expected to contribute with the highest growth rate as Evo and IRS gain traction and services scale on the back of a growing installed base. And for China, we see growth opportunities by adding adapting a more localized product offering and leveraging our installed base. Then on to the EBIT bridge. So with these growth ambitions, how do we get to the 14% to 16% EBIT? Well, first, we believe that gross margin will improve and gradually return towards the pre-pandemic levels as we grow and expand within Adaptive. And next slide is on gross margin. So I'm not going to talk more about gross margin here, but I'm going to say a few words on R&D and SG&A. As mentioned earlier by Christopher and also by me, I think, we expect the R&D organization to run at a gross expenditure of roughly 10% of revenue. The assumption here is the capitalization and amortization will be roughly in line. However, as I said before, it could be that towards the end of this period, we see amortization going up a little bit due to the product launches that we have in our plan and also the timing of those launches. As for SG&A, we see continued leverage effect on the new lower cost base, and our ambition is to offset further inflationary effects by increased productivity. If we then double-click on gross margin, we expect productivity measures and margin leverage from higher volumes to roughly offset cost inflation. This includes margin leverage from the lower cost base associated with our new operating model or Must Win Battle one, as we call it. We also expect reductions in product costs from Must Win Battle 4. When it comes to price, we plan for price improvements across the product portfolio with the main effects or the main contribution coming from improved solution pricing in mature markets and price increases across the service contract portfolio? And as you've heard from the regions as well as from Christopher, we plan for improvements in both market mix and product mix, driven largely by our growth -- by our adaptive business. Higher share of Evo and Iris in mature markets will improve the market mix, but also the product mix within solutions. Launch of new products and solutions and services -- or sorry, solutions and software that Christopher talked about, including recurring software sales will support the product mix, but also help drive volume. And we also expect margin support by increasing our service attach rates and scaling our service sales as our installed base grows. Okay. So let's leave the P&L and talk a little bit about cash flow. To secure continuously solid shareholder return and to create room for needed investments, we target a free cash flow before dividends of 10% of sales in 2029. For 2029, this implies a slight buildup in net working capital driven by higher sales, CapEx in line with depreciation and historic levels, R&D capitalization of 3% to 4%, and we assume that the finance net tax and leases to remain on current levels. This level of cash flow would open up opportunities for us and allow us to move forward with a certain room for action. And that brings me to the last part of my presentation, which is capital allocation. So a cash flow at 10% of sales in 2029 would give us roughly SEK 2 billion available for investments in growth and distribution to our shareholders. While maintaining our dividend payout of no less than 50% of net income, we would have room to invest further in our innovation-driven growth agenda, Christopher's R&D muscle or even decide to pursue opportunities -- other opportunities to fuel our growth ambitions. And if we double-click on the shareholder distribution, dividend payout is, of course, the primary alternative for distributing capital to our shareholders. But the dividend policy is, as I said, to distribute 50% of net income at a minimum. But on top of what we -- on top of that, we have the mandate from the Annual General Meeting, and that mandate is likely to remain also after this year's meeting to buy back share when the circumstances are right. And that brings me to my very last slide, super summary of what I've just gone through. We are taking steps to improve our earnings quality and the integrity of our earnings through clarifying and strengthening the connection between the P&L, the balance sheet and the cash flow, but also between orders and revenue. As for the financial target, we're aiming for 14% to 16%, and we expect commercialization of our adaptive offering, recurring software sales and service growth to be the main levers to get us there. And lastly, we believe that a strong cash flow and solid balance sheet is key so that we, as Elekta, can continue to pay good shareholder returns, but also invest in our future. So thank you. That was it for me today. So I hand it back to you, Peter. Thank you.

Great. Thank you, Klara. So with that, we are coming to the almost the end of the presentations. But before we will have the Q&A, Jakob just want to summarize all the presentations on the next slide. So please, Jakob.

Thanks. That may be a good idea. All right. I think we have taken you through the tour of Elekta, how we see it, and I just want to leave you with some overall perspectives. First, we are keenly aware of the situation we're in. As we say, we are not at full potential. I would say it's all frustrating, but it's also exciting because it shows that there's potential for us when we get to full potential. We absolutely feel we have a plan. It's a robust plan. It's rated in activities that then translate into financial targets. And if I would just give you a little bit an advice, do not underestimate our will to execute on the plan. I'll just tell you, we will see it through. I personally feel we have an obligation as Elekta, given our place in the industry and the world to make this company successful, the company to serve the colleagues, to serve it. And just a proof point, what we saw on the OpEx side, I mean, it's not small things we have done, okay? 15% fewer colleagues is wheel is still under wagon, we are still rolling. The OpEx savings are meaningful, but we did it not to save costs. We really did it because we want to see a new Elekta, Elekta 2.0, faster execution, a better say-do ratio, more innovation to the market, and we just have to do it. That's just my personal take. We have a plan in place. We're excited. We have a leadership summit with 100 Elekta leaders joining us here in Stockholm next week. We did it after mid-summer to engage them, and they will be engaged. They see the value of the plan. When we ask them, should we change that Elekta, basically 99 out of 100 said, yes, you have to change, and we need to move the company forward. So I think we have a strong base to accelerate our [indiscernible] going forward. Then we have a new operating model in place. Of course, when you do a lot of changes, it's hard not to do a little bit of [indiscernible] gazing and become internally focused. We are done with that. For me, it's now commercial execution. So some of the guys here in the states, and we have one online, we will talk a lot about customers. We'll talk a lot about gaining market share on pricing discipline. Then, of course, as a medtech company, it's all about innovation. And I think Christoper, what you outlined, maybe hard to really see all the final frist at the end of the day, this is a step-up change in the innovation pace and we are actually harvesting on some of the focus areas you have had over the last couple of years, and we should continue to deliver on that. And then not least, when you go out in Europe, it's a lot of [indiscernible] business, you also have to be price competitive. And you can only be price competitive at a good margin if you lean yourself. And that's why cost discipline within Elekta is going to be a lifestyle. It's not a diet, and I think our customers to serve that. So you will see significant product releases ahead of us. I would be very surprised if we don't see exactly the trend line we outlined on sales growth. Our order backlog is still solid. We clearly take note of some of the concerns for us on the order intake in Q4. I think we explained part of it, part on Middle East, part on being stringent on order intake criteria. Also said that overall, we have a book-to-bill of 1.04, and that's how you should think about revenue generation, and we now outline that here in our yearly guidance. And then when we look at the EBIT margin and cash generation, it's going to be a new company when we deliver on it. On the EPC, a few years ago, we were at 7%, 8%, we now guide at 14% to 16%. Last fiscal was the first year in 5 years we saw a net debt reduction despite SEK 900 million dividend. And obviously, when you start to generate free cash flow in excess of around SEK 2 billion, it gives us a lot of flexibility that Klara outlined in terms of dividends and other ways of distributing or deleveraging the company. So that's the key takeaway I would like to share with you, and thanks for your attention. And then we look forward to Q&A.

Yes. So we'll need a few seconds to make the stage ready for the Q&A. So bear with us. And then I would like to have Elekta management back on the stage, please. Great. Thank you. So we do now have alternate questions here in Stockholm, with questions I have received from you online. So again, if you have a question, please, in English, post the question, and we will answer it here on the floor. So I'll actually start with Veronika here in the middle.

Veronika Dubajova from Citi. Two questions for me. I mean, I have loads more, but I'm going to start -- that's all right. The first 1 is just on the midterm growth ambition. I'm just trying to reconcile, obviously, your ambition to see meaningful acceleration in the growth from a revenue perspective with the fact that Evo, certainly in Europe has been out in the market for a little bit. In theory, '26, '27 should be the years of impact in the U.S. We know there is a new platform coming from Varian. There's growing focus from United on the market. not just in China, but also outside of China. So I'm trying to understand kind of what gives you the confidence in your ability to really drive that growth acceleration given where we are from a product cycle perspective for you and your competitors, a long-winded way of summarizing it. My second question is just on the gross margin and the positive price contribution. As an observer of Elekta, what's been clear for a long time is pricing discipline has been something that the organization hasn't always had in the past. So I was hoping you could talk about what changes you've made to how your sales force is incentivized, how your regional leadership is incentivized to make sure that we can actually see the realization of positive price on a go-forward basis?

Great. I think the growth story, we'll start with, you, Jakob, and maybe Ardie can fill in on the growth.

Yes. Maybe we do it on why Ardie, why don't you start U.S. Europe, then are tied that globally, if that's okay?

Yes, I think your first question, Veronika, on competition, why do we feel strongly about winning. It's because the evidence we show is that the adaptive way of implementation is superior to what we see from our competitors. We do it faster, easier and we have a very flexible workflow. So it's always great that your competitors are following your strategy. So that's why I feel strongly that we can compete and win. And then on price discipline, we see a significant uptick also for these adaptive solutions because we tie it back to the business case for administration. So pricing discipline on the orders, but also pricing discipline on service has boosted our revenue profile.

[indiscernible] would you...

So on the Evo and online directive, I think just 1 month ago, not far from here, there was [indiscernible] we see -- we saw the high interest, I think adaptive was central to the Congress. I think we were the first mover advantage. We are still not done with the launch. So we are accelerating. We see a lot of interest. Most of the markets in Europe have already purchased, and we have installed for a large part of them, Evo and for a large portion of them with the online adaptive. There are many centers who are going to win clinical today. So I think it's just -- I would not say just the beginning, it's an acceleration for us. On the price discipline, as I tried to explain, I think we have simplified our portfolio -- our offering with packages. So it creates a lot of discipline and control when we price. So it's not just about taking an order, it's taking an order that meets our financial objectives, so much more rigor and discipline here.

Yes. So maybe I -- perfect, add a bit color. So in the U.S., we now have the product to compete and with our leadership in Adaptive, it clearly resonates. And then there is strong systemic demand for vendor competition in the market. In Europe, I think you outlined the replacement cycle coming in with 1,000 systems, and we are there to compete. And then keep in mind that the Evo system, you should really consider it as a platform. And what Christoper outlined is, it will be very meaningful enhancement with the 4 priorities you outlined, motion management, Iris, and then we have really worked on it for a handful of years, integrated console or integrated workflow and integrated table and there's a significant need. So we feel -- no, we know the product will be much more competitive and we're actually selling with those features. If we then unfold, back to your United Imaging, of course, it's a new competitor coming in. We have [indiscernible] on them. I don't want to do specific, but we know exactly where they have installations in Europe okay? And why they want it. I'll just remind the audience also we compete well in China, the home market, and we sell 50%. Last fiscal, we sold 50% more than they did. So I think that at least gives me confidence that we can compete. But of course, they will accelerate. And then within the emerging market, we are now fine-tuning our Harmony platform to have a high productivity, low-cost system. Then I'm much surprise discipline. I'll do it [indiscernible], but basically, the story line is this, we have now introduced a quarterly framework where we established target steering, and then very importantly, floor, ASPs and margins per product. So it's really 6 CT linacs, MR linac, 3 software packages on the TPS and OS. And we will discuss every quarter, we will analyze win-loss ratio. And then if we deviate from those floor, there has to be an escalation path. It's quite a new way of doing it. I wouldn't say it's top steering, but of course, we -- it has to be that when we win deals, they are profitable, we are aligned and then we move forward from there.

Great. And -- does [indiscernible] present yourself and the company you're representing. So Hassan, please, I'll move to you here.

It's Hasan from Barclays. A couple from me as well. And firstly, another on the top line midterm targets. I'd love to get your sense on the revenue guidance in the context, specifically of U.S., the U.S. reimbursement crisis that you mentioned, Jakob, on the full year analyst call, speaking to experts, revenues for facilities are down up to 30%. And even with higher acuity mix and motion management, it could be down as much as high single digit. So how do you think this will impact market growth for linacs? Could it push out replacement cycles? And why isn't this a headwind to your orders, particularly as you have a competitor launch at ASTRO later this year? And then secondly, also on United, but specifically on China. You are the biggest and most comprehensive player in radiotherapy in China, but do you think this is changing with strengthening competition out of your radiotherapy, but also multinational imaging peers. You are the most positive on China, so how do you think about the risk to that mid-single-digit expectation from -- for the China midterm targets if locals do indeed catch up higher up that acuity curve?

Let's start with Ardie with reimbursement question in North America, and then Jakob can take the China question later on. So please, Ardie?

Yes. Thank you for the question. I think, indeed, what I described today was that there is pressure on the traditional way of getting reimbursement done for the U.S. market. But like I said, this is an opportunity because the centers that actually make money have shifted more and more of their volumes to SBRT. So the centers that actually prove that they can financially thrive have moved to more complex treatments, which is great for us because what this does is that the systems that are out there that are aging, they need to be replaced. And that means we have access to a marketplace where the market position of Elekta has always been inferior compared to our competitor. So I think for us, it will drive demand. It pulls us also into deals because the customer wants to see what's available in the marketplace. And linked to the fact that we see a launch coming, it actually is great for us because it confirms the direction of Elekta. So we see this as a positive upside. As far as what does that mean for the revenue profile? I always believe that if you start seeing winning in the marketplace and you can start seeing your order book growing, then eventually, you pull this through on the revenue side. That's why we feel strongly about our guidance.

Maybe, Christopher, if you want to chip in, as you presented also a view about the reimbursement.

Well, I see what you mentioned that it becomes an economic necessity for many centers in the U.S. to shift to more modern approaches, more complex and modern approaches of radiation therapy. So if they have a very old aging linac, they need to shift or they need to give up. When they shift, they will look at where can we shift, what is the easiest for us with our existing staffing with our existing number, but also capabilities to do it? And I think here, I think we are a clear leader. If you look at the treatment times, Ardie mentioned 15 minutes for adaptive treatment times, this is far ahead of what our -- some of our competitors report. When we talk about our portfolio, we don't have to have a dedicated machine for adaptive. You can have a machine that you can use both for adaptive and for nonadaptive treatments, you make the choice at the day when the patient is then saying, I can go for a nonadaptive or I want to go for an adaptive. And the third one is that we have it across our portfolio. We have it on Unity, obviously, the high end. We have it on Versa HD and Evo, and we are bringing adaptive also to Harmony. So we have it in our full portfolio. It's really adaptive for everybody. Plus what I was mentioning about bringing CT motion management of organs to the linac, again, opening up a new revenue path that is manageable within our existing software framework, which is, I think, unique. And we don't know what the future will bring from other competitors, but where we are right now, I feel very confident that, that will carry on the growth in the next years.

And then, Hassan, maybe on China. It's true. We are a little bit of an outlier. Good thing is it's also an outlier in historical performance, right? So why are we fairly positive, not overly positive, but fairly passes. The market is recovering. So last year, it was EUR 250 million. We expect 10% growth, and it should really have an equilibrium around 300 units, still a greenfield market. 3,000 linacs, it should grow to likely 5,000, which is, let's say, 3 linacs per million capital, and that's very realistic. And then we look at our current data points, and we are roughly 40%, and that's not below, but just a notch below where we were 3 years ago, right? So -- and then we actually look at China as an opportunity for us besides growing with the market, of course, there are things we're also concerned about and that is we see our development speed is really good innovation speed. We see the world-class planning software we now have is partially developed out of China. We will probably deploy more resources there. We absolutely have COGS reduction opportunities out of China. So there are quite a few things. And then I talk a lot also to leading authorities. They look at Elekta as a very important player in the Chinese market. It's part -- we are integrated part of cancer care. We actually seen as a Chinese company and good citizen. So that's why we guide on mid-single digit going forward.

Before going to right side, I'll take you 1 there as 1 on the left side here, then I'll move to right to [indiscernible].

One for Ardie and 1 for [indiscernible], but Ardie first. The order positive shift in larger order intake. Could you elaborate a bit more on the characteristics of the your clients that are active? Is it Unity centers? Or is it larger centers? Or is it a bit of a mix or...

Yes. I think the nice thing about our commercial approach is that we've segmented the market, really focused on the different segments in the U.S. We've identified where we are strong. We have identified where we have opportunity. But it's a very nice balanced mix between IDNs between academic and between freestanding and community. The only thing I will say where we see a change is with Unity, where we are now seeing a shift from academic to IDNs. Like I said, the flagship hospital wants to basically keep these highly valuable patients in their health system instead of referring them out to the academics. So that's where we see a little bit of a shift. But for the rest, it's a balanced order intake for the market.

You want to ship in there, Christopher, it seems like you...

Well, no, I think the power is that we have a harmonized approach for online adaptive, but also for motion management across our portfolio. So for IDNs who try to harmonize their installed base inside their own integrated delivery network, it is a perfect way to make sure that the training is harmonized that they have reference point about what are expectations about productivity of certain sites and they can roll out the same kind of processes, again, across the whole portfolio of sites ranging from smaller sites to these flagship sites. And I think that's what these centers are looking for, and that's what we are enabling in a good way.

And then you had a question for [indiscernible], right?

Yes, indeed. In Europe, when Evo has got a bit longer in the -- further ahead in the launch. You mentioned 1,000 potential linacs that was -- that are up for renewal. I mean some Linux can be up to 20 years old when they replaced, others can -- well, there could be a case for replacement them before 10 years. What's your -- how do you define these 1,000 roughly? And secondly, when looking at your clients that are taking on Evo in Europe because, I mean, some linac -- some people are looking more into the pure stereotactics and other are treating a fair amount of conventional and lower premium -- low premium part of the market, where is Evo positioned in Europe?

So the 1,000 units for replacement are all 12 years and more. So of course, there are some reach 20 years in specific markets like Germany, for example. So we vote until now, basically 50% of the evo sole sold them with Elekta on online. So we feel that it means that those customers want to do online adaptive clearly. And approximately, we have the same amount, the same proportion with advanced treatment and more conventional treatment, but the possibility to upgrade Evo is really what interests the market. So this -- and specifically with the development we'll have in a few months, the new release, I think will enrich the value proposition of Evo with the upgrade and the upsell of those -- of the 6D table, the integrated console, the high-risk development that they are waiting for. And I think that's going to give us another boost for Evo.

Great. Let's move to the right, you had a question.

[indiscernible] here. So I have 2 questions, please. The first one would be on the gross margin. You mentioned that you aim to take that back to pre-pandemic levels, which is something that you've been speaking about for some time now. And I would just be curious in hearing a bit more about what makes you confident in this step? And maybe also if you can mention anything about the time line you aim to do this in? And then a second question on the price increases that we also have been speaking about. So how are you thinking about price increases? First, should we view the price increases to a similar level in all the markets? And secondly, how do you reason around the price increases and balancing that with gaining market shares as we're speaking about increased competition?

Could you start with the price and gaining market shares? Yes. And then maybe you can comment on the gross margin.

No short answer is on price, you shouldn't think it's across the board. Each market has different competitiveness. It's actually less price sensitive in the U.S. Certain markets, it's more price competitive. We see India being fairly competitive. So there are variations. But the way you should think about it is we expect a price uplift of 2% to 3%. That's how we look at it on the short term. Then on overall price discipline, that is -- that goes back to the comment I said earlier on floor margins and floor ASP, and it's really down very granular per sales cluster.

Klara, share some light on the gross margins.

Yes. I mean, as I said, this will be a gradual -- sorry, who asked the question? It will be a gradual move towards this increase. But I think we feel confident with the new product launches with this position that we have in Adaptive, that is new, I think, compared to in the past, I haven't been here for that long. But we are -- we feel very confident about that. And also as we grow the installed base, our ability to also scale services on the back of that installed base to also defend the gross margin. And also, I mean, we expect the cost -- or the new operating model and the cost decreases that will remain, right? So that we will scale on that going forward. That's the idea. So we don't expect to scale back, if you will, that cost piece. So that's an important part. And then also what we haven't maybe spoken so much about today, but our Must-Win Battles 4, which is our reduction of product cost, which Christopher's team is working on, on redesigning our products, making them more cost efficient, but also what the supply chain team are working on in terms of reducing the cost. That's a really important area for us as well and something that we have included in our plans.

Maybe to add to that second point because in the past, when you look at how our linacs have been developed, they have been developed mainly from out Europe, specifically the Crawley environment, where there was less emphasis on very rigorous design for cost. Now we have shifted a lot of our also linac development to Beijing in China, where they both have the local supply chain, but they also have, by nature, a very strong focus on getting cost down from the beginning. And that, of course, then again, feeds back into also our U.K. development teams. So moving forward, all new developments will have a very strong KPI related to cost reduction. And cost reduction is not bill of material alone, can be, but it's also about how fast can you do an installation, how much can you do remote or how big is the reliability gain that you get if components last longer. These things in the past were not the prime -- there was the clinical features. I mentioned in my presentation, the clinical features were the driving force for our development program. Now we have these nonclinical features at the same level of consideration.

We move to Matthias here in the front, and then I'll move to the back end again.

Mattias Vadsten from SEB. So you talked about the new launches of product features, Iris high definition imaging, motion management, 60 table, et cetera. My question is, how do you incrementally charge the customer for this? Or is it rather lever to drive sort of Evo adoption in itself? And also, I think it comes down to the first question we had in the room here with the back-end loaded growth profile. So with these new features, are you seeing that when those are released, you are fully competitive, so to speak? And today, you're not just there yet? Or how should we read into it?

Well, it obviously is a mix. I think when we talk about Adaptive, I believe we are the leader of the pack. At this point in time, we are ahead. When we talk about some other things like workflow integration, we are catching up and we're honest about it, but we are catching up. So that's where, for example, the integrated console and the integrated table are so important because they bring us on par with what competition has to offer already. But having said that, because we are upgradable, people who have already an Elekta linac for them, it's an easy step to get to that new level. And they know that we have a commitment to go further than that. Talking about a willingness to pay, the willingness to pay often depends, do they get paid for what they pay for. So when they get like in the U.S., [indiscernible] was elaborating, increased reimbursement for these more complex processes and procedures without having to hire new staff, adding a certain capital investment to get to an online adaptive workflow is actually a business case that makes a lot of sense for these centers because otherwise, they are faced with old equipment that is not going to deliver any value to them. So I consider willingness to pay a derivative -- willingness to pay Elekta is a derivative of them getting paid for what they are delivering and that are the value proposition that we are focusing on when we prioritize.

And... Clinical and nonclinical.

But we can charge in the market...

Of course. So when we sell with integrated table, integrated console, we actually do that now in Europe with the upgrade clause, we can charge higher than on the old spec.

Very clear. Then also, you talked about the new modern interoperability API and so on in your section. So maybe if you could be a bit more precise on what that means? And also, is this driven by the customer side so that they pressure on you on that side? Or is this sort of something opportunity that Elekta sees.

It's both. It's what Elekta sees, what our third parties see that we work together with and what our customer sees. And in the past, the interoperability between different vendors was often done on a more ad-hoc base where you directly put their software, their APIs into our -- deep into our own system. What we are now defining is a much more controlled modern interface that is for all vendors, the same, but it's flexible enough to also accommodate the different vendors. So for the third parties, you name them that talk about surface-guided radiation therapy. They have a very clear set of specifications they can develop on, they can test on and therefore, easier for them to put it also into our workflows. And for the customer, the benefit is clearly that they will see a smoother workflow than in the past because we had to redevelop with every vendor and test with every vendor a new one, and that led to delays for certain vendors, but also for one vendor, the integration or the interoperability was better for another one less so. So this becomes also a very valid value proposition for our customers.

Anyone we move there to the table with Christopher here.

[indiscernible] Just a question regarding Evo and the installation time for that. I mean, it's potentially an upside if one can do upgrades directly with old synergies or the harmonies or the agilities. So can you touch -- give some light on the potential upside on the margin side, but also on the installation time, I mean, the book-to-bill, the difference if you do just do an upgrade of MLC in comparison to installing the full Evo. So that's one question. Secondly, on the software side, I mean, great to see the growth in U.S. has there been any flip around on, I mean, [indiscernible] stations or even eclipse with the new software that is apparently very positive. Lastly, I mean, looking at the growth for Brachy, I mean, you're the clear leader in this. Could you touch a little bit on the growth and the potential of the Brachy side because that's obviously a high-margin product and a great product.

Maybe you can start with the Brachy growth.

I absolutely can. Yes. So Brachy where you deliver the dose inside the patient's body is a more traditional way of treating, but actually high, high quality. And we have estimated a plus 70% global market share, good margin profile in the business. We also look towards, say, mid-single-digit growth, but it's part of our overall guide. So we think we have a strong position. And then very importantly, you start to reinforce that position into our linac system under the Elekta ONE software. And that is a strong demand for our customers from workflow. you give a Brachy boost and then you go over to the linac treatment. And that's part of the commercial synergies that we can drive stronger going forward. And the same on Europe, by the way.

Yes. And maybe to enhance that Brachy story. As you probably know, we have still microselectrons out there, and they're getting ready for replacement. And so we see a nice uptick now for them to finally go to the Flexitron platform. So that also drives our growth in the Brachy business.

And maybe I know and Ari, you can comment on the flips we have on software. You mentioned Eric Research, for example, and how that is in your markets.

You want to start... If you want. Yes. No, I think what is clear is that you've seen, obviously, the department level planning systems is basically what people use for bread and butter. That's where people have invested, for instance, in RayStation or Clips. What we have done now with this version of Elekta ONE Planning, we're unlocking a new way of treatment. So it basically is in parallel to what they use. But once you start using this in the adaptive environment, you stop using it in the conventional environment. So this journey of transition is now happening. And you see a couple of key customers that have said, "Hey, if this is part of the integrated ecosystem, then why do we still have a separate machine standing here. So I think what you will see is that this integration of that ecosystem, linking the linac to the 3PS and the OIS, that's a secret in order to get to adaptive treatments. And with that, the focus on a stand-alone departmental-wide treatment planning system will start to disappear.

Arnaud, any comments on the U.K.

I think totally it's exactly what Avi has described. I think we have not seen huge issue until now. So it's not a blocker for us.

And Eric, you had a third question, right? Upgrades versus...

Book-to-bill on the installation difference, the time if you do a full installation of Evo, but in comparison to just swapping the MVC, if I understood you can do and the margin difference because it must be huge from a COGS point of view. If you can touch a little bit on that, it would be interesting to hear.

Maybe start... No, no, but it's -- there are certain upgrade opportunities. You saw some of them from [ Adi ] from existing installed base. Of course, typically, when we have customers with equipment older than 8, 10 years, it makes less sense to upgrade because it costs money. On the existing linac, but rather wait and then replace it. But the way you should think about the Evo platform, that is really the accelerator of upgrading our aging installed base in the U.S. and then tap into what you outlined, the 1,000 units market opportunity in Europe. I mean you need to come with new technology, and that's, I think, what we have outlined, we have.

Maybe to enhance that a little bit further, the book-to-bill on the linac is normally about 12 months. But now you see that in order to really get access to these new reimbursements, actually the book-to-bill -- book to revenue is shortening. So we really have a high need for these customers to get their bunker ready, take the old machine out and put the other machine in. Obviously, that's more capital intensive. And also the margins on the upgrades are much better, right? Iris combined with the EOP suite is very good margin for Elekta. So that's where I would say that's a 3- to 4-month cycle. So I think this is really driving a lot of profitable growth for us.

Great. Move to Kristoffer.

Kristofer Liljeberg from Carnegie DNB. Two questions. First, I would like to get back to what do you think will hold back what you see as the full potential growth? And the reason I'm asking is -- you see China recovering since U.S. solution orders were strong last year. Now you're talking about customers want pretty quick installations. So what's holding back growth near term? And the second question on working capital and the reason for why that should be a bit higher here now than what we have seen in recent years as a percentage of sales?

So maybe, Jacob, you can start with the full potential on growth and then Martin can flip in and then working capital for you then, Klara.

Yes. So first, we take note of the growth trajectory the last 2 years. There has been organic growth of 1% per year, right? We now guide at 2% to 4%. We say it's below market growth. But for us, it's super important. We have better say-do ratio, if you will. So on the growth side, of course, we need to see the proof points being lift out in the U.S., I would say, start of the year, promising, but we are 1.5 months into our new fiscal year. And then clearly, we see also in certain markets, new competitors coming in, and we want to take stock of that and see how it plays out. But -- so that's why we stand by the guidance we give. Then on the midterm, it's clearly linked to 3 things. The most important is on products. And we do believe that with what we outlined here, we are ahead in certain areas. We are matching on others, great on the software side. On the OAS side, we have some work to do, but we know what we need to do. So that's on the product side. Then commercial execution, it's linked to our reset the model. We have great commercial leaders out there. We have changed incentives. We have changed quite a lot of people. We have a new performance culture. And then what I really, really think is important is we have to stay lean on the cost side so we can deliver that good price value ratio to customers and compete with -- to compete with someone that brings the best technology at a good price is a pretty tough competitor to compete with.

You want to add in something Arnaud Ari.

Yes, I think for Europe, we have seen really a very strong uptake with Evo. We have this cycle of replacement that is really a very nice opportunity. I think the 2 things that could offer upside to the guidance that we are thinking about in Europe are -- I think it's all this science of execution. I think this is where we -- most of the companies, as we all know, can accelerate or decelerate. So I think there is really a big opportunity to have much more rigor, much more discipline in the organization, but it's already an ongoing activity, but we'll see. We'll see how much we can capture on top of this. And of course, innovation and how competition will come to the market. So I think that's where we are.

Ali?

Yes. For me, Kristofer, full potential means that we are competing, and we are showing that we are starting to compete in the most important segment again of linacs. We saw obviously brachy neuro was fine. MR-linac is great, but now we need to untap a different market segment. But it's really fun now to get into the mix again of competing on the linac side. And that for me means full potential that our customers are pulling us in because they want to compare, and we have not seen that in the past. So that's for me, really, again, competing in the marketplace.

Klara, on the working capital question.

Yes. I mean -- so the cash flow slide that I showed is for '28, '29, right? And we expect a little bit of an -- or we expect an uptick year-over-year in revenues in that year, and that means that we probably will tie up a little bit more in working capital that year compared to the year before. Of course, we'll do what we can to not do that, but that's the assumption that we have in the model. Erik, in the end of the -- yes, over there.

Erik Cassel from Danske Bank. I wanted to talk about emerging markets. There hasn't really been any talk of it on the CMD, and I recall from the last one that back then, that was like the core topic of unit growth in coming years. So basically now, I guess we're seeing United they're in like 85 countries. We have Shinva announcing a lot of wins in LatAm. And I think I counted another 8 lacs coming to market in the next 2 years, mostly targeting those China markets. So I just wanted you to talk a bit about emerging markets where you're today pretty strong. What are you seeing for the coming years? Do you see that you can sort of keep market growth? Or do you expect to lose out in units? And what do you see on price now that they are coming with essentially 40% discount versus what you're offering? That's my first question.

Absolutely. And then we can cover LatAm in detail, Adi. So when you mentioned some, you shouldn't necessarily take it as that we have actively deselected the other. We just chose these 3 large core markets. So our planning assumption is absolutely that we will see intensified competition in the global South. And we absolutely, Erik. I mean, we see that now in LatAm. We see that in Indonesia. We see it in India actually also. And we are tailor-making our product portfolio accordingly. What we have outlined, and we also have that in the guide, we -- for this fiscal, we assume broad-based growth. And actually, our EMEA region, you can say also after a weak last year, I would be very, very surprised if they don't show a pretty reasonable growth going forward. So don't over interpret that would be my advice. And then on LatAm specifically...

Yes. Like you said, we have a very strong position in LatAm, and we see a continuation of that. If you see the uptake of Evo, for instance, now in Argentina, in Chile and Mexico, you see that these customers are looking for the same thing, which is they need to treat more patients more efficiently with less staff. And so the solutions that you can buy in the market from our competitors that are coming do not facilitate those kind of needs. So for us, it's a really strong position to leverage our premium position, which then also protects our price points in that market space. So I feel really strongly about our market position in LatAm.

Let me say something about India before you come to the second question specifically because I see there is a significant opportunity, specifically in India, and you mentioned it as a key coming up market. India is price sensitive, obviously. They have a need. They are significantly underserved when it comes to cancer care. What they do have, they have highly qualified clinicians. Unfortunately, these clinicians are not where the patients are. So what we are doing, and it's important that we said we are bringing adaptive and therefore, hypofractionation to our entire portfolio that we will position Harmony specifically as a productivity engine towards the Indian market, including hypofractionation and the feature I mentioned about remote collaboration is going to be essential in a hub-and-spoke model where there's a hub where the clinicians are that are going to do the treatment planning, making sure they are pushing this then to the kind of regional centers a very price competitive value proposition, but leapfrogging maybe a lot of markets when it comes to the adoption of hypofractionation because Indian people for Indian people to travel to a center is a huge expense. It's very difficult. So us being able to bring adaptive and thus hypofractionation to our whole portfolio, I believe, is going to be a key differentiator also to some of the maybe more cost of goods competitors that might come from China. So I think the portfolio here is really important.

A second question?

Yes. I also wanted to talk a bit on service as well, which you haven't touched much on. I mean my belief that it generates the lion's part of profits in Elekta, so may even say all of it. But what happens to ServiceNow in the coming years? Because as you've said yourself, you've lost quite a bit of market share. I guess the service is running on an installed base that has market share, which is notably above what your new market share sales is. So in terms of coming years, what happens if that installed base starts to churn? Can it be offset somehow?

Maybe you want to start.

Yes. So thanks, Eric. Installed base is actually growing. So you can still lose a bit of market share. But if the overall market growth exceeds that, then -- and that's what we said. I mean, I think at last Capital Market Day, we showed a lower installed base than we show this year. So overall, we see our service revenue growing. And it is actually very important. Of course, you can sit there and say, what is the split profitability, service, software or hardware because if you don't have the equipment sale, you don't have the service contract, at least not in our case. But the profitability margin is attractive. And we're actually looking at strengthening the moat around our equipment to make it more attractive for customers to use Elekta as a service provider when they choose us as the equipment provider. But it's a very good point.

Yes. I mean we are also enabling service with our teams in a much more efficient way. So in this case, you had third parties in the past that would come in and say, "Oh, I serviced an Elekta machine in the past, and I can do it for half the price." -- it really creates a complete different model when you start focusing more on remote service, remote access and building in solutions that only Elekta can provide. So you see a shift. The old engineers that used to be able to fix our linacs, they're retiring. So those people that were in-house are now basically coming back to us and people sign up for service agreements. So our attachment rate is going up. And with that, I also see that we counter the threat that you just described.

Any comments on the service business in Europe?

Yes, clearly. So in Europe, we still have a lot of opportunities in Eastern Europe to increase the attach rate. So that's really a boost. As Jakob said, we are increasing our installed base. And on software, overall, I think the attach rate is another priority. So we can as well increase there. So I think -- and plus disciplined price increase. So we try not to sell multiyears of service anymore where it's very difficult to capture the full value of price -- annual price increase and we segment year-over-year. So again, in terms of execution, price discipline, I think we are maximizing the price increase potential.

David, in the middle of the room here.

David Adlington, JPMorgan. Maybe you could just talk to the cadence of the improvement in revenue growth. And just to be absolutely clear, the mid-single digit is a compound number over the 3 years, not mid-single digit as an exit rate in '28, '29 because there's, I think a little bit of confusion around that. And then just on China, you're talking about double-digit unit growth for the market. I just wondered if we can get your expectations on pricing and also how your market share, you're expecting that to evolve over the next 2 to 3 years.

Yes, it's not the exit rate. It's a CAGR. China, barely, we expect the market to go from 250 units to 270, but it could also be 280. But clearly, the market is recovering on price. We see a little bit more procurement through VBT. So -- but the price stability when we look at ASP is still there, and we actually have increased prices a little bit on our end.

Great. We have time for one more question. Any gentleman here in the front?

Ruter Smith, I represent the family office. This is an odd question, but with these aging machines that are replaced, are they refurbishable? And if so, I mean, they can -- if they are going to be scrapped, someone could pick them up for next to nothing. Is that happening? Is someone picking these up, selling them to less developed markets for a very cheap price?

Should I... I'll start with what you see. I mean I can start. First of all, yes, they are scrapped and mostly not refurbished because we have to see that they are also already active parts, or activated parts in there. So they are not just ready to go out again. Do we -- are there incidences of people getting those hands on? And maybe that is the case. I cannot comment on that. I don't have any data. But of course, the idea is that we are increasingly reuse components of existing of older parts of the linacs. We are looking, for example, at the opportunity to reuse tungsten as one of the key materials that are a significant part of linacs that are very high in demand as we speak. And of course, moving forward in the more circular economy, we will increase the number or the amount of percentage of parts we will reuse. So to find a linac in a in a usable format after we decommission it, I don't think that is happening very often, but maybe for you to -- because you know how you do decommission our linacs.

No, I mean, I can tell you almost all the linacs get scrapped. There's a few examples of moving them between institutions that have one of them and they move it to a different part of their institution. But we do not support actively moving them to other countries because the quality of the machine cannot be warranted. So when you say, hey, I've got a cheap machine, I refurbished it and then I can use it again. I may be seen 2 cases so far.

Good. That was actually the last question. Before I have Jakob to close, I would like to say for everybody here in Stockholm, we have mingle back at Forskaren, our head office. It's not going to be in an office. It's going to be on the bottom floor at Urban Delhi. So right after you down here, people from Elekta will help you and show you the way there. So -- but before we close, Jakob, anything you want to say?

I want to say thank you very much for showing up, whether online or here in the room. I know it was a warm room. We didn't do it on purpose. And then I wish to the set here, and there are quite a few right mid-summer.

Thank you. Thank you.