FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2023
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Sectra’s three-month interim report 2023/2024
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REPORT PRESENTATION
September 5, 2023
at 10:00 a.m. CEST
Follow online:
https://investor.sectra.com/q1report2324
Three-month report 2023/2024
Record-high order bookings
Sectra’s contracted order bookings exceeded SEK 2.9 billion during the
quarter. Demand for the company’s customer offerings in both medical
imaging IT and secure communication contributed to this historically
high level for a single quarter. Net sales and recurring revenue are
growing. Currency movements continued to have an advantageous
effect on the company’s financial outcome and dampened the impact of
ongoing investments in the transition to service sales and cloud-based
deliveries. During the quarter, several hospitals deployed Sectra’s cloud
services for medical diagnostic imaging and one of the largest hospital
chains in the US ordered these services.
FINANCIAL OUTCOME IN BRIEF
Figures in parentheses pertain to the corresponding period/quarter in the preceding fiscal year.
First quarter: May–July 2023
• Contracted order bookings rose 32.9% to SEK 2,970.0 million (2,235.4), of which SEK 344.4 million (705.3)
pertained to guaranteed order bookings. Of the guaranteed order bookings, 28% were recognized during the quarter
and a further 31–41% are deemed to pertain to revenue within 12 months after the end of the quarter.
• Net sales increased 20.6% to SEK 583.7 million (484.1). Based on unadjusted exchange rates, the increase was
14.2%. Recurring revenue accounted for SEK 397.2 million (310.4) of net sales, up 28.0%. Based on unadjusted
exchange rates, the increase was 21.4%. Cloud recurring revenue (CRR) increased 72.8% to SEK 86.4 million
(50.0).
• Operating profit rose 7.6% to SEK 69.3 million (64.4), corresponding to an operating margin of 11.9% (13.3).
Based on unadjusted exchange rates, operating profit decreased 5.3%.
• Profit for the period amounted to SEK 61.6 million (54.1).
• Cash flow from operations amounted to SEK -98.3 million (-64.1).
Key figures Quarter 12 months
SEK million Q1 Q1 Δ Rolling Full-year Δ
23/24 22/23 % 23/24 22/23 %
Contracted order bookings 2,970.0 2,235.4 32.9 5,370.3 4,635.7 15.8
of which guaranteed order bookings 344.4 705.3 -51.2 2,245.6 2,606.5 -13.8
Net sales 583.7 484.1 20.6 2,450.4 2,350.8 4.2
of which recurring revenue 397.2 310.4 28.0 1,446.7 1,359.9 6.4
of which cloud recurring revenue (CRR) 86.4 50.0 72.8 291.0 254.6 14.3
Operating profit 69.3 64.4 7.6 460.6 455.7 1.1
Operating margin, % 11.9 13.3 n/a 18.8 19.4 n/a
Profit for the period 61.6 54.1 13.9 382.5 375.0 2.0
Earnings per share, SEK 1 0.32 0.28 14.3 1.98 1.95 1.5
Cash flow from operations -98.3 -64.1 -53.4 406.3 440.5 -7.8
Average no. of employees 1,112 975 14.1 1,049 1,015 3.3
1 Before and after dilution.
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Sectra’s three-month interim report 2023/2024
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Torbjörn Kronander,
President and CEO
CEO’S COMMENTS
The first quarter was characterized by significant trust shown by customers in
both secure communication and medical imaging IT. We are experiencing a
turnaround in secure communication, with high demand and deliveries. We also
passed important milestones in the transition to cloud- based solutions for
medical diagnostic imaging. These successes demonstrate the value we
provide for our customers and that our long- term initiatives in research and
development are paying off.
Contracted order bookings once again exceeded previous record- breaking levels. All
operating areas are showing strong sales growth, which is a result of our desire to have
satisfied customers and to offer the latest technology in our areas. I am pleased to report that
in the most recent quarter , it was Secure Communications that displayed the strongest
improvement. The operating area has achieved a turnaround after a few tough years and the
future now looks bright. In medical imaging IT, we have e ntered a phase where ongoing
strategic investments in subscription services and cloud deliveries are now having a clearer
impact on profitability than in the previous year. Moreover, this development reflects our
proactive response to industry trends and a im for long- term sustainable growth. We have
also prepared for major deliveries that will continue for several years to come, primarily in
North America. This included hiring personnel who are still in the onboarding phase.
Sectra’s success is the result of a long- term approach—both to research and development
and when it comes to establishing good relationships with satisfied customers who then
expand their use of Sectra’s solutions and recommend us to others. The major procurement
we secured in the US du ring the quarter is an excellent example of this. Our relationship
began when we developed a solution for ophthalmology imaging that the customer has been
using for the past few years. Now that they plan to replace their old system for radiology,
they have decided to continue building on a solution and supplier with whom they are
satisfied and expand their system to include our services for medical diagnostic imaging,
Sectra One Cloud. In the long term, the contract includes an expansion into additional
diagnostic imaging areas to create a more unified and cost -efficient organization. This is
only one of several orders in Imaging IT Solutions from the past year that confirms our
ability to manage the enterprise imaging needs of extremely large healthcare pro viders,
something that offers benefits to customers in three areas: costs, opportunities for integrated
diagnostics and better data security through fewer systems.
Regardless of their size or infrastructure problems, we can help to reduce costs and
complexity for customers by replacing traditional on-premises solutions with cloud services.
We have laid the foundation for the transition through major investments in business and
product development as well as an organization for cloud deliveries. These initi atives
involve substantial initial costs and will not generate revenue until a later stage. This
transition to service sales will ultimately contribute to more stability and overall
improvements as well as a more long-term business than license sales. However, growth in
sales and profit will be weaker in the short to medium term.
The most important key figures we use to measure the progress of the transition are recurring
revenue and cloud recurring revenue. The figures for the quarter show that things are moving
at a rapid pace. The Sectra One model has a key role to play in this. During the quarter, the
first customers in the UK and US to order Sectra One Cloud running in public clouds began
to use the services. Additional customers have ordered our cloud services over the past year
and several deployment projects are ongoing.
Our progress during the quarter has strengthened Sectra’s position for the future and is
paving the way for sustainable and long- term growth. With satisfied customers and an
innovation-driven approach, I look forward to working with our current and future customers
to lead the development of a healthcare system that can overcome the enormous challenges
of the future as we move toward a safer and more secure society.
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FINANCIAL GOALS
Sectra’s overall operational target is to create high customer value in our markets. Delivering customer value is also the Group’s
most important sustainability target since our customers’ work to treat patients, cure diseases and increase cybersecurity is vital
for functioning societies. Sectra’s customers should be so satisfied with their experience that they remain for a long time, expand
their use of our solutions and recommend Sectra to others.
Customer satisfaction cannot be achieved without satisfied and dedicated employees. Employees who are motivated, understand
their customers, feel good and are satisfied in their jobs will also increasingly develop new, creative solutions that can further
increase the value we provide for Sectra’s customers. A healthy financial performance is naturally also essential. This is what
pays our employees’ salaries and enables continued innovation and the investments needed to continue creating the substantial
customer value and customer satisfaction that we strive for.
Sectra has three Group-wide financial goals. Stability and profitability are considered fundamental goals. Once these goals have
been met, the focus shifts to earnings growth, which in practice is our primary financial goal. All result indicators exceed the
target levels by a comfortable margin.
The financial goals are (in order of priority):
3. Earnings growth:
Growth for operating profit/share
over a five-year period ≥50%
1. Stability:
Equity/assets ratio ≥30%
2. Profitability:
Operating margin ≥15%
51%
Goal
19%
Goal
113%
Goal
Diagrams and amounts in the financial report
Bars show the outcome per quarter and lines show the outcome for the rolling 12-month period (R12). Amounts are restated
in SEK million unless otherwise indicated.
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EVENTS
First quarter
Imaging IT Solutions
• Sectra signed a contract with a US-based health system serving a multi-million strong patient community. The
contract concerned Sectra One Cloud, the cloud subscription service for diagnostic imaging, which will run in a
public cloud. The contracted order value for the implementation and use of the service initially amounted to SEK 2.4
billion (USD 227 million), if the full term of the contract is realized until 2033, although no part is guaranteed order
bookings.
• Three healthcare providers who previously ordered Sectra One Cloud deployed the service during the first quarter.
• Amstelland Hospital in the Netherlands ordered Sectra’s enterprise imaging solution as a subscription, Sectra One.
Secure Communications
• Sectra and the engineering consulting company AFRY entered into a partnership to strengthen cybersecurity in
operations critical to society in Sweden.
Group
• Sectra signed an agreement to acquire a limited-liability company that owns two properties, Teknikringen 20
(Sectra’s head office) and Teknikringen 16. The company will become a wholly owned subsidiary of Sectra AB. The
acquisition is not expected to have a significant effect on the Sectra Group’s financial outcome. The transfer and
possession took place on September 1, 2023.
After the end of the reporting period
• No events of significant importance for the assessment of Sectra’s earnings and financial position took place between
the balance-sheet date and the publication date of this interim report.
For further information about these events,
visit https://sectra.com/news
At the beginning of August, the U.S. News & World Report published its annual ranking of
the best hospitals in the US. Nine of the 22 hospitals included on the list use medical imaging
solutions from Sectra. We are proud that these prominent hospitals have chosen to partner
with us. Together with our customers, we are dedicated to developing the healthcare sector
so they can provide high-quality patient care.
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Sectra’s three-month interim report 2023/2024
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SECTRA’S MARKETS
Sectra plays a key role in meeting the need for medical imaging IT and cybersecurity. We help solve major social problems in
changing markets, where scope for expansion remains. The global trends of an aging population and increased digitization in society
mean that these markets are expected to continue to grow even in a weaker economic climate.
Our customers operate in some of society’s most critical functions, which makes our brand an important symbol for reliability,
trustworthiness and stability. Our job is to help customers become more efficient and give them the tools needed to make people’s
lives healthier, safer and more secure. In line with Sectra’s vision, this is how the company creates value for its customers,
shareholders and society as a whole.
IT support for more efficient care and medical education
Today’s demographic development and increased survival rates among cancer patients are putting pressure on healthcare. The ag ing
population of the industrialized world entails major challenges. At the same time, the proportion of people of working age is
decreasing. In order to maintain high quality of care with fewer people taking care of more patients, healthcare must become more
efficient. The growing population of senior citizens is also shining a spotlight on diseases affecting the el derly. The treatment of
patients with cancer and skeletal diseases, for example, entails enormous challenges. These diseases represent some of the most costly
and resource-intensive areas in the healthcare sector and are dependent on medical diagnostic imaging. Healthcare providers across
the globe use Sectra’s expertise and solutions in medical IT not only to increase productivity and coordinate their resources but also
to improve efficiency in orthopaedic surgery through better planning and follow-up. The rapidly growing number of genetic analyses
for cancer diagnostics, conducted alongside pathology analyses, is also contributing to a growing market. Sectra also helps t o raise
the quality of medical education by providing solutions where the user can inte ract with medical images and share educational
materials. We are noting increasing synergies between our operating areas since healthcare is being exposed to cybercrime at an
accelerating rate, resulting in, for example, the authorities in the US issuing a particular warning to healthcare providers.
We enable our customers to take care of more patients and save more lives at a long -term sustainable cost. This work is carried out
in our Imaging IT Solutions and Business Innovation operating areas.
Cybersecurity for a more stable and safer society
The ability to safely and efficiently handle and transmit sensitive information is central to the stability and security of s ociety,
particularly when it comes to critical social functions and critical infr astructure. The players in these areas rely on products and
services that increase cybersecurity. We have extensive experience of protecting society’s most critical communications and control
systems and we are a strong brand in the niche markets of encryption and secure mobile communications. IT developments in society,
political instability in the world, and the growth of cybercrime are creating a greater need for Sectra’s expertise and product offerings.
We help customers to provide increased security, thereby contributing to a more stable and safer society. This work is carried out in
the Secure Communications operating area.
COMMENTS ON THE GROUP’S FINANCIAL OUTCOME
Order bookings
Total contracted order bookings for the quarter amounted to SEK
2,970.0 million (2,235.4), up 32.9% from the comparative quarter
which also included several major customer contracts. A total of SEK
344.4 million (705.3) was guaranteed order bookings. The r atio of
contracted order bookings to net sales for the latest rolling 12 -month
period totaled 2.2, up from 2.0 at the end of the previous fiscal year.
Demand for the company’s customer offerings in both medical imaging
IT and secure communication contributed to the increase in contracted
order bookings from the comparative quarter. The outcome includes
comprehensive, long- term customer contracts, for example for
managing large volumes of medical images. The most recent quarter
includes one such new contract with a major healthcare provider in the
US. If the full term of the contract is realized until 2033, the order value
amounts to approximately SEK 2.4 billion (USD 227 million), of which
no part is guaranteed. Orders of this size are not secured every qua rter
and therefore lead to significant variations in order bookings between
individual quarters and periods.
Contracted order bookings, SEK million
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Sectra’s three-month interim report 2023/2024
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Net sales
Net sales increased 20.6% to SEK 583.7 million (484.1). Based on unadjusted exchange rates, consolidated sales increased 14.2%.
All operating areas reported an increase from the comparative quarter.
The ongoing transition to selling products and software as services, of which cloud deliveries account for a quickly growing share,
contributed to an increase in recurring revenue. Recurring revenue accounted for SEK 397.2 million (310.4) of sales. This represents
an increase of 28.0% and based on unchanged exchange rates an increase of 21.4%. Lost recurring revenue (recurring revenue churn)
for the last 12- month period was 0.9%. During the quarter, cloud recurring revenue (CRR) increased 72.8% to SEK 86.4 million
(50.0). Non-recurring revenue also increased from the comparative quarter, primarily due to sales growth for Secure Communications.
Sectra is growing in all geographic markets except for the US, where the outcome for the quarter was affected by the transiti on to
service sales and cloud deliveries. The operations in the UK reported the largest individual sales increase from the comparat ive
quarter, primarily through increased recurring revenue . More than 70% of the Group’s net sales are carried out in foreign currency,
primarily EUR, GBP and USD, which entails a relatively large sensitivity to currency fluctuations.
Sales and recurring revenue, SEK million Sales by geographic market, SEK million
Sales trend per geographic market, SEK million
Compared with the corresponding period in the preceding fiscal year
Sales trend per operating area, SEK million
Compared with the corresponding period in the preceding fiscal year
Total Increase Decrease
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Sectra’s three-month interim report 2023/2024
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Result
The Group’s operating profit increased 7.6% to SEK 69.3 million (64.4), mainly due to the strong performance of Secure
Communications. Currency fluctuations continued to have a positive effect on the Group’s financial outcome. Based on unadjust ed
exchange rates, the Group’s operating profit decreased 5.3% from the comparative quarter. The operating margin amounted to 11.9%
(13.3). The operating margin was impacted by the shift to service sales and cloud deliveries in Imaging IT Solutions, the
implementation of services and infrastructure for new customers, and increased marketing activities from the comparative quarter.
The Group’s financial items amounted to SEK 8.2 million (3.8). Financial items improved primarily due to increased interest income.
Currency fluctuations had an impact of SEK 3.1 million (2.5) on the Group’s financial items. Sectra does not hedge its operations,
and currency fluctuations therefore have an immediate impact on profit or loss or on comprehensive income. Profit after financial
items amounted to SEK 77.5 million (68.2). This outcome corresponds to a profit margin of 13.3% (14.1). Earnings per share before
and after dilution amounted to SEK 0.32 (0.28).
Financial position and cash flow
The Group’s cash and cash equivalents at the end of the reporting period
amounted to SEK 688.2 million (724.4). In addition to this, the Group has a
short-term investment of SEK 120.0 million (0). The Group’s debt/equity ratio
was 0.06 (0.05) as of the balance -sheet date. Interest -bearing lease liabilities
amounted to SEK 78.0 million (58.1).
The Group’s total cash flow for the period amounted to SEK - 144.0 million
(-87.9). The decrease compared with the comparative quar ter is mainly due to
changes in the cash flow from operations. Cash flow from operations amounted
to SEK - 98.3 million ( -64.1) during the quarter. The change from the
comparative quarter is the result of an increase in capital tied up in accounts
receivable and customer projects as well as hedging of components for future
delivery of orders received. Cash flow per share was SEK -0.51 (-0.33).
Cash flow from investing activities amounted to SEK - 38.9 million ( -18.1).
Refer to the information about investing activities on the next page.
Total Increase Decrease
Operating profit trend per operating area, SEK million
Compared with the corresponding period in the preceding fiscal year
Operating profit, Group, SEK
Cash flow from operations,
Group, SEK million
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Investments and depreciation/amortization
Investments for the period amounted to SEK 38.9 million (18.1). The outcome
includes capitalized work for own use of SEK 18.0 million (9.0) and the deposit
paid for the acquired properties. Capitalization, which includes the development of
cloud-based services for medical diagnostics, increased from the comparative
quarter in all operating areas.
Total depreciation and amortization for the period was SEK 24.5 million (22.2), of
which SEK 9.1 million (8.8) was attributable to capitalized development expen -
ditures.
At the end of the period, capitalized development expenditures totaled SEK 180.2
million (149.9).
Seasonal variations
Sectra has historically experienced major seasonal variations, since individual
projects can be very large relative to Sectra’s sales. This applies for both medical
systems and encryption systems. The beginning of the fiscal year is usually weaker
since few customers want to deploy new systems during the summer. The
variations in order volumes between individual quarters are significant since
certain contracts are very large and have long terms. As Sectra transitions to selling
products as a service, this variation is expected to gradually decrease over the next
several years since revenue will be spread more evenly over time. For further
information about seasonal patterns, refer to Sectra’s Annual and Sustainability
Report for the 2022/2023 fiscal year.
Capitalized development
expenditures, SEK million
Read Sectra’s Annual Report
and Sustainability Report:
https://investor.sectra.com/reports/annual-reports
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Sectra’s three-month interim report 2023/2024
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OPERATING AREA IMAGING IT SOLUTIONS
Quarter 12 months
Q1 Q1 Δ Rolling Full-year Δ
23/24 22/23 % 23/24 22/23 %
Sales, SEK million 518.6 435.8 19.0 2,161.8 2,079.0 4.0
of which recurring external revenue 370.7 288.1 28.7 1,340.6 1,258.1 6.6
of which cloud recurring revenue 83.0 47.2 75.8 277.0 241.2 14.8
Operating profit, SEK million 74.3 80.4 -7.6 456.3 462.4 -1.3
Operating margin, % 14.3 18.4 n/a 21.1 22.2 n/a
Major regional healthcare providers are choosing Sectra, customers are expanding
their use of our solutions from one to several medical imaging areas, and demand for
deliveries of medical diagnostics as a service is increasing . This is contributing to
growth in order bookings, net sales and recurring revenue for Imaging IT Solutions.
The major order for Sectra One Cloud from a healthcare provider in the US, with a
contracted order value of approximately SEK 2.4 billi on, meant the operating area
again surpassed its earlier records for contracted order bookings. The customer
already uses Sectra’s solution for ophthalmology and the order means they will now
use Sectra’s cloud -based services for radiology. In the long ter m, the customer
intends to also use these services for pathology, cardiology and orthopaedics. During
the quarter, Sectra also secured new orders for its digital pathology solution from
hospitals in countries including the US and Switzerland.
Three customers deployed Sectra One Cloud during the first quarter, one of which in
the UK and two in the US. These are first in each country to use Sectra One Cloud.
However, this progress is not yet fully reflected in the outcome since the customers’
use of the servi ces is expected to gradually grow. One of the cloud installations
during the quarter was also the first through the partnership organization, where
Sectra One Cloud entails improved prospects to expand operations.
The operating area’s profitability was affected by the implementation of services and
infrastructure for new customers and ongoing investments, with a major focus on
transitioning from traditional software deliveries to service sales and cloud -based
deliveries. The shift has proceeded very rapidly and the effects were larger than
during the comparative quarter. At the same time, currency movements remained
advantageous, which partly offset the transition.
Trend, SEK million
Demand in the market for medical imaging
IT is being driven by consolidation in the
healthcare sector, growing volumes of
medical images and the replacement of
older IT systems. This is leading to larger
customers, more exten sive procurements
than before, and greater demands on an
even more structured work method. Sectra
is well positioned to help the healthcare
sector increase its productivity, improve
patient care and make the best use of
available resources.
Sales
Operating profit
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OPERATING AREA BUSINESS INNOVATION
Quarter 12 months
Q1 Q1 Δ Rolling Full-year Δ
23/24 22/23 % 23/24 22/23 %
Sales, SEK million 16.7 12.7 31.5 77.8 73.8 5.4
of which recurring external revenue 3.7 2.9 27.6 15.5 14.7 5.4
of which cloud recurring revenue 3.4 2.7 25.9 14.0 13.4 4.5
Operating profit, SEK million -1.0 -1.8 44.4 11.3 10.5 7.6
Operating margin, % neg neg n/a 14.5 14.2 n/a
Business Innovation comprises the Genomics IT, Medical Education and
Orthopaedics business units. This area also reports the expenses for research
activities, which largely focus on initiatives in the field of AI for medical
applications.
Recurring revenue is growing quickly, and the financial outcome in terms of sales
and operating profit showed a positive trend compared with the comparative quarter.
However, the results may vary significantly between quarters and periods. The new
business models will result in higher recurring revenue, resulting in less variation in
the long term.
Sales
Operating profit
At the end of 2022, the Sectra Education Portal was
incorporated into the curriculum at the University of
Bradford, West Yorkshire, in England. Our collaboration
with the university has given both students and educators
an opportunity to reshape how knowle dge is acquired and
shared. In an interview, Dr Keren Bielby- Clarke, an
Associate Professor at the Faculty of Life Sciences at the
University of Bradford, where she teaches anatomy and
physiology, explains how their journey to introduce
innovative technolo gy could revolutionize teaching in
various disciplines:
medical.sectra.com/case/cross-disciplinary-learning-
enabled-through-cloud-based-solution/
Trend, SEK million
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Sectra’s three-month interim report 2023/2024
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OPERATING AREA SECURE COMMUNICATIONS
Quarter 12 months
Q1 Q1 Δ Rolling Full-year Δ
23/24 22/23 % 23/24 22/23 %
Sales, SEK million 56.3 41.6 35.3 249.2 234.5 6.3
of which recurring external revenue 22.8 19.2 18.8 90.1 86.5 4.2
Operating profit, SEK million 2.6 -6.5 140.0 28.2 19.2 46.9
Operating margin, % 4.6 neg n/a 11.3 8.2 n/a
The uncertain geopolitical situation, with an ongoing war in Europe and further
tensions worldwide, continues to highlight the importance of defense capabilities and
public security. This, in turn, is placing greater demands on communication and
fueling the need for investments in high assurance products, encryption development
and cybersecurity both in Sweden and in the rest of Europe.
Secure Communications’ opportunities to help customers in this situation continued
to contribute to strong order bookings during the quarter for both development
assignments and product sales as well as support and service commitments. The
financial outcome in terms of sales and earnings was substantially better than in the
year-earlier quarter. The long -term trend is positi ve, although outcomes naturally
vary greatly between quarters due to the nature of the operations.
During the first quarter, Sectra received additional product orders and assignments,
primarily from Swedish authorities to improve the civil and military defense’s ability
to communicate securely. These orders indicate that the market situation has
normalized after the pandemic years, although certain challenges remain. Demand
for our solutions is growing, while the global shortage of components an d strained
labor market continue to impact the growth rate.
Budget appropriations for cybersecurity for the defense forces, authorities and
critical infrastructure have increased, and we are well positioned with offerings that
meet customers’ stringent dem ands. To meet increased needs and new regulations,
during the last few years we have made extensive investments in our development
environment, which is now approved and operational. Ongoing initiatives in Secure
Communications also include new offerings w ith the potential to contribute to
substantial customer value and growth in all product segments. In line with
prioritized activities to ramp up our initiatives, supplement our customer offerings
and broaden our market, we have entered into a partnership w ith AFRY in the area
of critical infrastructure. Together we offer a complete and flexible security solution
for operational technology (OT) systems in critical infrastructure and other
operations essential to society, starting in the Swedish market.
Quantum-proof encryption
Quantum computers pose a major security threat that must be addressed to keep information
confidential for a long time. Typically, classified information at the SECRET level must be kept
secure for more than 30 years, even in the event of an attack from a quantum computer. Sectra
is at the forefront in this field. Independent security authorities have determined that our EU and
NATO-approved crypto solution Tiger/S can protect from future quantum computer attacks. In this
article, you can read about what quantum technology is and where it came from:
communications.sectra.com/resources/quantum-technology-glimpses-of-potential-technological-
advancements/
Sales
Operating profit
Trend, SEK million
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OTHER OPERATIONS
Quarter 12 months
Q1 Q1 Δ Rolling
Full-
year Δ
23/24 22/23 % 23/24 22/23 %
Sales, SEK million 34.6 26.6 30.1 132.7 124.7 6.4
Operating profit, SEK million -6.5 -7.8 16.7 -35.0 -36.2 3.3
Operating margin, % neg neg n/a neg neg n/a
Other Operations pertain to Sectra’s joint functions for administration, recruitment, Group finance, IT, regulatory affairs, people and
brand, and activities related to investors. The change from the comparative quarter mainly pertained to increased central management
of costs distributed across the organization.
PARENT COMPANY
The Parent Company’s income statement and balance sheet are reported on page 17. The Parent Company Sectra AB includes the
research department for medical imaging IT, the Genomics IT business unit and the head office’s joint functions (see Other Operations
above).
2023 AGM AND
PROPOSED SHARE REDEMPTION PROGRAM
The AGM will be held on September 7, 2023 in Linköping. Visit
the event page https://investor.sectra.com/agm2023 for further
information and documents.
Proposed share redemption program/dividend
For the 2022/2023 fiscal year, the Board and the President
propose that the AGM resolve to distribute SEK 1.10 per share to
the shareholders through a 2:1 share split in combination with a
mandatory redemption process. The corresponding distribution to
the shareholders in the preceding year was SEK 1.00 per share.
The proposal was announced in Sectra’s year -end report
published on June 2, 2023.
THE SHARE
Share capital and number of shares
Sectra’s share capital on the balance-sheet date totaled SEK 38,824,179, distributed between 194,120,895 shares and 312,052,035
voting rights. The number of shares is distributed between 13,103,460 Class A shares and 181,017,435 Class B shares. Sectra’s
holding of treasury shares at the end of the period amounted to 1,453,406 Class B shares, corresponding to 0.7% of the share capital
and 0.5% of the voting rights in the company. For more information, refer to Note 3.
Authorization
The Board of Directors was authorized by the 2022 AGM, during the period until the 2023 AGM, to decide on new share issues of a
maximum of 18,500,000 Class B shares and to decide on the acquisition and divestment of all of the company’s treasury shares. As
of the publication date of this report, these authorizations have not been utilized. The complete authorization is presented in the
minutes from the AGM: https://investor.com/agm2023. At the time of publication of this financial report, the Board had not utilized
these authorizations.
RISKS AND UNCERTAINTIES
Through its operations, Sectra is exposed to such business risks as dependence on major customers and partners, the effect of currency
fluctuations on pricing in the markets in which the Group is active, and property and liability risks. Sectra is also exposed to various
types of financial risks such as currency, interest-rate, credit and liquidity risks. A detailed description of the risks and specific external
factors as well as Sectra’s strategies and tactics for minimizing risk exposure and limiting adverse effects are provided in the
Administration Report in the Group’s Annual and Sustainability Report for the 2022/2023 fiscal year in the administration report on
pages 83–85 and in Note 29 on pages 115–116. No events have occurred that would alter the conditions reported.
Timetable for the 2023 redemption process
Sep 7 Resolution by AGM
Oct 6 Final day of trading in the Sectra share, including
rights to redemption shares
Oct 9 First day of trading in the Sectra share, excluding
rights to redemption shares
Oct 10 Record date for the share split
Oct 11–20 Trading in redemption shares
Oct 24 Record date to revoke redemption shares
Oct 27 Preliminary date for payment of redemption
settlement from Euroclear
===== SIDA 13 =====
Sectra’s three-month interim report 2023/2024
13 (28)
FOR FURTHER INFORMATION
Contact Sectra’s CEO Torbjörn Kronander, telephone +46 13 23 52 27 or email info.investor@sectra.se.
Presentation of the interim report
Time: September 5, 2023 at 10:00 a.m. CEST
Torbjörn Kronander, President and CEO of Sectra AB, and Jessica Holmquist, CFO of Sectra AB, will present the financial report
and answer questions. The presentation will be held in English. For information about participating online or to listen to the recording
afterwards, visit: https://investor.sectra.com/q1report2324.
Financial calendar and AGM
2023 AGM September 7, 2023 at 4:00 p.m. (CEST)
Six-month report December 15, 2023 at 8:15 a.m. (CET)
Nine-month report March 8, 2024 at 8:15 a.m. (CET)
Year-end report June 5, 2024, at 8:15 a.m. (CEST)
For other IR events, visit: https://investor.sectra.com/events-and-presentations/
ASSURANCE
The Board of Directors and the President of Sectra AB (publ) hereby assure that the interim report for the May 1–July 31, 2023 period
provides a true and fair view of the Parent Company’s and Group’s operations, financial position and earnings and describes the
significant risks and uncertainties facing the Parent Company and other companies in the Group.
Linköping, September 5, 2023
Torbjörn Kronander Jan-Olof Brüer Tomas Puusepp Birgitta Hagenfeldt
President, CEO and Board member Chairman Board member Board member
Ulrika Unell Anders Persson Fredrik Robertsson
Board member Board member Board member
Filip Klintenstedt Andreas Örnéus
Board member and employee representative Board member and employee representative
This report was not reviewed by the company’s auditor.
This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation
and/or the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set
out in the press release, at 8:15 a.m. CEST on September 5, 2023.
Sectra AB (publ), Corporate Registration Number 556064-8304, https://sectra.com, email info@sectra.com
===== SIDA 14 =====
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GROUP
Condensed consolidated income statements
SEK thousand
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Net sales (Note 4) 583,739 484,089 2,450,402 2,350,752
Capitalized work for own use 17,970 8,970 64,661 55,661
Other operating income 1,320 117 2,783 1,580
Total income 603,029 493,176 2,517,846 2,407,993
Goods for resale -71,079 -45,664 -288,312 -262,897
Personnel costs -319,715 -263,568 -1,225,476 -1,169,329
Other external costs -118,385 -97,387 -449,173 -428,175
Depreciation/amortization and
impairment
-24,537
-22,207
-94,269
-91,939
Total operating expenses -533,716 -428,826 -2,057,230 -1,952,340
Operating profit 69,313 64,350 460,616 455,653
Total financial items 8,213 3,822 28,128 23,737
Profit after financial items 77,526 68,172 488,744 479,390
Taxes -15,970 -14,043 -106,360 -104,433
Profit for the period 61,556 54,128 382,384 374,957
Profit for the period attributable to:
Parent Company owners 61,556 54,128 382,384 374,957
Earnings per share
Before dilution, SEK 0.32 0.28 1.98 1.95
After dilution, SEK (Note 3) 0.32 0.28 1.98 1.95
Consolidated statement of comprehensive income
SEK thousand
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Profit for the period 61,556 54,128 382,384 374,957
Items that may be reversed in profit or loss
Translation differences 20,894 8,424 30,093 17,623
Total other comprehensive income for the
period
20,894 8,424 30,093 17,623
Total comprehensive income for the period 82,450 62,552 412,477 392,580
Comprehensive income for the period
attributable to:
Parent Company owners 82,450 62,552 412,477 392,580
===== SIDA 15 =====
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Condensed consolidated balance sheets
SEK thousand Jul 31
2023
Jul 31
2022
Apr 30
2023
Assets
Intangible assets and goodwill 248,631 217,917 236,969
Tangible assets 74,306 65,817 74,556
Right-of-use assets 80,776 60,506 84,905
Financial assets 133,265 138,331 125,224
Deferred tax assets 6,779 6,369 6,632
Total fixed assets 543,757 488,940 528,286
Accounts receivable 431,692 308,211 386,153
Other current assets 67,772 57,580 57,545
Prepaid expenses and accrued income 876,756 510,001 819,441
Short-term investments 120,000 – 120,000
Cash and bank balances 688,210 724,353 825,242
Total current assets 2,184,430 1,600,145 2,208,381
Total assets 2,728,187 2,089,085 2,736,667
Equity and liabilities
Equity 1,386,349 1,145,988 1,296,669
Deferred tax liabilities 6,095 4,400 5,928
Provisions 13,685 9,129 12,461
Non-current lease liabilities 52,135 33,576 56,968
Other long-term liabilities – 516 –
Total long-term liabilities 71,915 47,621 75,357
Provisions 3,158 2,230 1,682
Current lease liabilities 25,865 24,085 25,294
Other current liabilities 136,938 150,607 204,983
Accrued expenses and deferred income 1,103,962 718,554 1,132,682
Total current liabilities 1,269,923 895,476 1,364,641
Total equity and liabilities 2,728,187 2,089,085 2,736,667
===== SIDA 16 =====
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Consolidated cash-flow statements
SEK thousand 3 months
May–Jul
2023
3 months
May–Jul
2022
Full-year
May–Apr
2022/2023
Operating activities
Operating profit 69,313 64,350 455,653
Adjustment for non-cash items 38,888 24,241 121,351
Interest and dividends received 5,597 1,608 11,849
Interest paid -434 -313 -2,062
Income tax paid -32,632 -14,819 -71,635
Cash flow from operations before changes in working capital 80,732 75,067 515,156
Changes in working capital
Change in inventories -1,080 581 -12,825
Change in receivables -64,075 50,034 -299,595
Change in current liabilities -113,875 -189,813 237,752
Cash flow from operations -98,298 -64,131 440,488
Investing activities
Acquisitions of intangible assets -18,599 -8,970 -55,752
Acquisitions of tangible assets -20,301 -9,110 -37,036
Short-term investment – – -120,000
Cash flow from investing activities -38,900 -18,080 -212,788
Financing activities
Repayment of lease liabilities -6,786 -5,721 -26,627
Redemption of shares – – -192,662
Cash flow from financing activities -6,786 -5,721 -219,289
Cash flow for the period -143,985 -87,932 8,411
Cash and cash equivalents, opening balance 825,242 808,775 808,775
Exchange-rate difference in cash and cash equivalents 6,953 3,510 8,056
Cash and cash equivalents, closing balance 688,210 724,353 825,242
Condensed consolidated statement of changes in equity
SEK thousand 3 months
May–Jul
2023
3 months
May–Jul
2022
Full-year
May–Apr
2022/2023
Equity at start of period 1,296,669 1,080,737 1,080,737
Comprehensive income for the period 82,450 62,552 392,580
Dividend/redemption of shares – – -192,662
Settlement of share-related payments 7,230 2,699 16,014
Equity at end of period 1,386,349 1,145,988 1,296,669
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PARENT COMPANY
Condensed Parent Company income statements
SEK thousand
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Net sales 34,874 27,274 136,245 128,645
Capitalized work for own use 1,106 662 4,091 3,647
Other operating income 10 24 210 224
Total income 35,990 27,960 140,546 132,516
Goods for resale -3,539 -128 -6,241 -2,830
Personnel costs -14,385 -12,871 -61,737 -60,223
Other external costs -25,686 -23,250 -109,731 -107,295
Depreciation/amortization -399 -405 -1,482 -1,488
Total operating expenses -44,009 -36,654 -179,191 -171,836
Operating profit -8,019 -8,694 -38,645 -39,320
Total financial items 69,479 3,860 80,803 15,184
Profit after financial items 61,460 -4,834 42,158 -24,136
Appropriations – – 436,014 436,014
Profit/loss before tax 61,460 -4,834 478,172 411,878
Tax on earnings for the period 5 996 -86,018 -85,027
Profit/loss for the period 61,465 -3,838 392,154 326,851
Parent Company statement of comprehensive income
SEK thousand
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Profit for the period 61,465 -3,838 392,154 326,851
Total comprehensive income for the
period 61,465 -3,838 392,154 326,851
Condensed Parent Company balance sheets
SEK thousand Jul 31
2023
Jul 31
2022
Apr 30
2023
Assets
Intangible assets 4,752 779 3,647
Tangible assets 5,266 3,828 3,699
Financial assets 256,321 145,240 226,245
Total fixed assets 266,340 149,847 233,591
Accounts receivable 0 1,034 240
Receivables from Group companies 533,885 496,990 664,145
Other current assets 34,703 36,982 25,871
Short-term investments 120,000 – 120,000
Cash and bank balances 517,342 590,129 662,611
Total current assets 1,205,930 1,125,135 1,472,867
Total assets 1,472,270 1,274,982 1,706,458
Equity and liabilities
Restricted equity 270,032 265,967 268,927
Unrestricted equity 632,900 410,266 565,322
Total equity 902,932 676,233 834,249
Provisions 1,214 228 916
Long-term liabilities – – –
Current liabilities 568,124 598,521 871,293
Total equity and liabilities 1,472,270 1,274,982 1,706,458
===== SIDA 18 =====
Sectra’s three-month interim report 2023/2024
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NOTES
Note 1 Accounting policies
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and
the Swedish Securities Markets Act. The accounting policies and calculation methods applied ar e consistent with those described in
Sectra’s 2022/2023 Annual and Sustainability Report.
Note 2 Related-party transactions
Other than the types of transactions presented in Note 3 Employees and personnel costs in the 2022/2023 Annual Report, no significant
transactions with related parties took place in the reporting period.
Note 3 Number of shares
No. of common shares 2
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Before dilution at the end of the period 192,667,489 192,662,325 192,667,489 192,667,489
After dilution at the end of the period 1 192,667,489 192,667,455 192,667,489 192,667,489
Average, before dilution 192,667,489 192,662,325 192,665,337 192,664,046
Average, after dilution 1 192,667,489 192,667,455 192,667,475 192,667,466
1 Dilution of the number of shares, based on the convertible programs issued in 2017/2018. Dilution corresponded to 5,130 share s on July 31, 2022 and the
last remaining convertibles were redeemed on January 31, 2023. There are therefore no convertible programs outstanding.
2 Number of shares does not include the 1,453,406 (1,000,000) Class B treasury shares.
Note 4 Operating segments and sales
Operating profit/loss by business segment
SEK million
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Imaging IT Solutions 74.3 80.4 456.3 462.4
Secure Communications 2.6 -6.5 28.2 19.2
Business Innovation -1.0 -1.8 11.3 10.5
Other Operations -6.5 -7.8 -35.0 -36.2
Group eliminations -0.1 0.1 -0.2 -0.2
Total 69.3 64.4 460.6 455.7
SEK million
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
United States 149.6 152.6 684.0 687.0
Sweden 104.9 97.6 480.2 472.9
United Kingdom 118.6 67.8 432.5 381.7
Netherlands 38.7 35.5 139.0 135.8
Rest of Europe 121.5 93.7 518.3 490.5
Rest of World 50.4 36.9 196.4 182.9
Total 583.7 484.1 2,450.4 2,350.8
Sales by business segment
SEK million
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Imaging IT Solutions 518.6 435.8 2,161.8 2,079.0
Secure Communications 56.3 41.6 249.2 234.5
Business Innovation 16.7 12.7 77.8 73.8
Other Operations 34.6 26.6 132.7 124.7
Group eliminations -42.5 -32.6 -171.1 -161.2
Total 583.7 484.1 2,450.4 2,350.8
Sales by geographic market
===== SIDA 19 =====
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Recurring and non-recurring external revenue by business segment
Group
SEK million
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Recurring revenue 397.2 310.4 1,446.6 1,359.9
Of which cloud recurring revenue, CRR 86.4 50.0 291.0 254.6
Non-recurring revenue 186.5 173.7 1,003.8 990.9
Total 583.7 484.1 2,450.4 2,350.8
Share of recurring revenue, % 68.0 64.1 59.0 57.8
Imaging IT Solutions
SEK million
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Recurring revenue 370.7 288.1 1,340.6 1,258.1
Of which cloud recurring revenue, CRR 83.0 47.2 277.0 241.2
Non-recurring revenue 148.3 148.1 819.5 819.2
Total 519.0 436.2 2,160.1 2,077.3
Share of recurring revenue, % 71.4 66.1 62.1 60.6
Secure Communications
SEK million
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Recurring revenue 22.8 19.2 90.1 86.5
Of which cloud recurring revenue, CRR 0.0 0.0 0.0 0.0
Non-recurring revenue 33.5 22.3 158.8 147.7
Total 56.3 41.5 248.9 234.2
Share of recurring revenue, % 40.5 46.3 36.2 36.9
Business Innovation
SEK million
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Recurring revenue 3.7 2.9 15.5 14.7
Of which cloud recurring revenue, CRR 3.4 2.7 14.0 13.4
Non-recurring revenue 4.8 3.3 25.5 24.0
Total 8.5 6.2 41.0 38.7
Share of recurring revenue, % 43.5 46.8 37.8 38.0
Other Operations
SEK million
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Recurring revenue 0.0 0.1 0.4 0.5
Of which cloud recurring revenue, CRR – – – –
Non-recurring revenue – – – –
Total 0.0 0.1 0.4 0.5
Share of recurring revenue, % 100.0 100.0 100.0 100.0
===== SIDA 20 =====
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Note 5 Financial definitions and alternative performance measures
The Group applies the European Securities and Markets Authority (ESMA) Guidelines on Alternative Performance Measures
(see below). Alternative performance measures are applied since the company believes they provide valuabl e supplementary
information for management and investors given that they play a central role when it comes to understanding and evaluating th e
Group’s operations.
For future changes to Sectra’s recognition of order bookings, refer to page 71 in Sectra’s 2022/2023 Annual and Sustainability
Report.
Share of recurring revenue
Purpose
Shows the portion of external sales that is recurring. Recurring revenue refers to revenue from customers for the provision of a good or
service during the term of a contract, wherein the customer cannot continue to benefit from the full functionality of the good or service
without ongoing payments and the revenue stream is expected to recur for more than 12 months.
Recurring revenue mainly refers to revenue from subscription, support and maintenance agreements. The share delivered via the cloud is
reported as cloud recurring revenue (CRR). Revenue from system implementations, migration and one-time purchases of licenses are not
recognized as recurring revenue.
Calculation
Recurring revenue divided by total external sales. Refer to the table on page 19.
Recurring revenue churn
SEK thousand
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Recurring revenue from customer contracts that
have concluded or not been renewed
13,059 18,225
Recurring revenue 1,446,636 1,359,895
Share of recurring revenue, % 0.9 1.3
Purpose Calculation
Indicates the share of recurring revenue from customer contracts
that have concluded or not been renewed during the latest rolling
12-month period.
Recurring revenue from customer contracts that have
concluded or not been renewed divided by total recurring
revenue.
Equity per share before and after dilution
Jul 31
2023
Jul 31
2022
Apr 30
2023
Equity, SEK thousand 1,386,349 1,145,988 1,296,669
Number of shares before dilution at the end of the period 192,667,489 192,662,325 192,667,489
Number of shares after dilution at the end of the period 192,667,489 192,667,455 192,667,489
Equity per share before and after dilution, SEK 7.20 5.95 6.73
Purpose Calculation
Measures the company’s net value per share and shows if a
company is increasing shareholder capital over time given
currently available participations.
Equity divided by the number of shares before and after
dilution at the end of the period.
===== SIDA 21 =====
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Non-interest-bearing liabilities and interest-bearing liabilities
SEK thousand Jul 31
2023
Jul 31
2022
Apr 30
2023
Non-interest-bearing liabilities 1,263,838 885,047 1,357,736
Interest-bearing liabilities 78,000 58,050 82,262
Total liabilities 1,341,838 943,097 1,439,998
Purpose Calculation
Indicates the proportion of the Company’s liabilities with and
without interest. Included in the calculation of the debt/equity ratio
and capital employed.
Non-interest-bearing liabilities refers to liabilities without interest, such as
accounts payable, advances from customers and tax liabilities. Interest-
bearing liabilities refers to liabilities with interest, such as lease liabilities.
Cash flow per share before and after dilution
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Cash flow from operations, SEK thousand
-98,298
-64,131
406,319
440,488
Number of shares before dilution at the end of the period 192,667,489 192,662,325 192,667,489 192,667,489
Number of shares after dilution at the end of the period 192,667,489 192,667,455 192,667,489 192,667,489
Cash flow per share before and after dilution, SEK -0.51 -0.33 2.11 2.29
Purpose Calculation
Shows the cash flow the company generated per share before
capital investments and financing.
Cash flow from operations divided by the number of shares before and
after dilution at the end of the period.
Ratio of contracted order bookings to net sales
SEK thousand 12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Contracted order bookings 5,370,253 4,635,715
Net sales 2,450,402 2,350,752
Ratio of contracted order bookings to net sales 2.19 1.97
Purpose Calculation
Provides an indication of demand for the company’s products and
services.
Contracted order bookings divided by net sales.
Liquidity
SEK thousand Jul 31
2023
Jul 31
2022
Apr 30
2023
Current assets 2,184,430 1,600,145 2,208,381
Unutilized overdraft facilities 15,000 15,000 15,000
Current liabilities 1,269,923 895,476 1,364,641
Liquidity 1.7 1.8 1.6
Purpose Calculation
Shows the company’s current ability to pay. Current assets plus unutilized overdraft facility divided by
current liabilities.
Average no. of employees
Purpose Calculation
Shows full-time positions in a certain period.
Average number of full-time employees during the period.
===== SIDA 22 =====
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Unadjusted exchange rates – sales
3 months
May–Jul
2023
3 months
May–Jul
2022
Full-year
May–Apr
2022/2023
Nominal change, % 20.6 19.3 20.6
Exchange-rate effect, % -6.4 -8.6 -8.0
Change in unadjusted exchange rates, % 14.2 10.7 12.6
Purpose Calculation
Provides an indication of changes in financial measures for
unadjusted exchange rates.
Amounts for the current year restated at last year’s average exchange rates
less last year’s amounts at last year’s average exchange rates, divided by
last year’s amounts at last year’s rates.
Unadjusted exchange rates – operating profit
3 months
May–Jul
2023
3 months
May–Jul
2022
Full-year
May–Apr
2022/2023
Nominal change, % 7.7 -28.6 18.9
Exchange-rate effect, % -13.0 -13.3 -16.3
Change in unadjusted exchange rates, % -5.3 -41.9 2.6
Purpose Calculation
Provides an indication of changes in financial measures for
unadjusted exchange rates.
Amounts for the current year restated at last year’s average exchange
rates less last year’s amounts at last year’s average exchange rates,
divided by last year’s amounts at last year’s rates.
Unadjusted exchange rates – recurring revenue
3 months
May–Jul
2023
3 months
May–Jul
2022
Full-year
May–Apr
2022/2023
Nominal change, % 27.9 22.7 25.8
Exchange-rate effect, % -6.5 -7.6 -7.5
Change in unadjusted exchange rates, % 21.4 15.1 18.3
Purpose Calculation
Provides an indication of changes in financial measures for
unadjusted exchange rates.
Amounts for the current year restated at last year’s average exchange
rates less last year’s amounts at last year’s average exchange rates,
divided by last year’s amounts at last year’s rates.
Order bookings – guaranteed
Purpose Calculation
Indicates future revenue in the company. The share of contracted order bookings that corresponds to what the
customer has undertaken to purchase when the contract is entered into.
Order bookings – contracted
Purpose Calculation
Indicates future revenue in the company. The value of orders received that corresponds to what the customer has
procured and intends to purchase during the term of the contract.
===== SIDA 23 =====
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P/E ratio
SEK 12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Share price at end of period 168.6 161.7
Earnings per share for the rolling 12-month period 1.98 1.95
P/E ratio, multiple 85.2 82.9
Purpose Calculation
Shows how the market values the company’s profits and how long
it may take for the shareholders to get a return on an investment in
the share.
Share price at the end of the period divided by earnings per
share for the most recent rolling 12-month period before
dilution.
Earnings per share before and after dilution
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Profit for the period, SEK thousand 61,556 54,128 382,384 374,957
Average no. of shares before dilution 192,667,489 192,662,325 192,665,337 192,664,046
Average no. of shares after dilution 192,667,489 192,667,455 192,667,475 192,667,466
Earnings per share before and after
dilution, SEK
0.32
0.28
1.98
1.95
Purpose Calculation
Shows each share’s participation in the company’s earnings during
the reporting period.
Profit/loss after tax divided by the average number of shares before
dilution. This performance measure is defined in accordance with IFRS.
Return on equity
SEK thousand
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Profit for the period 61,556 54,128 382,384 374,957
Equity at start of period 1,296,669 1,080,737 1,145,988 1,080,737
Equity at end of period 1,386,349 1,145,988 1,386,349 1,296,669
Average equity 1,341,509 1,113,363 1,266,169 1,188,703
Return on equity, % 4.6 4.9 30.2 31.5
Purpose Calculation
Shows the return on capital attributable to the Parent Company
owners.
Profit for the period divided by average equity.
Return on capital employed (ROCE)
SEK thousand
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Profit after financial items 77,526 68,172 488,744 479,390
Financial expenses -434 -313 -2,183 -2,062
Average capital employed 1,421,640 1,173,699 1,334,194 1,261,146
Return on capital employed, % 5.5 5.8 36.8 38.2
Purpose Calculation
Shows profitability based on how much capital is used in the
operations.
Profit after financial items plus financial expenses divided by
average capital employed.
===== SIDA 24 =====
Sectra’s three-month interim report 2023/2024
24 (28)
Operating margin
SEK thousand
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Operating profit 69,313 64,350 460,616 455,653
Net sales 583,739 484,089 2,450,402 2,350,752
Operating margin, % 11.9 13.3 18.8 19.4
Purpose Calculation
Measures operational profitability. This measure is used for the
purpose of management by objectives in the operations.
Operating profit divided by net sales.
Operating profit per share
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Operating profit, SEK thousand 460,616 455,653
Number of shares before dilution 192,667,489 192,667,489
Operating profit per share, SEK 2.39 2.36
Purpose Calculation
Shows earnings per share before interest and taxes. Operating profit divided by the number of shares before
dilution on the balance-sheet date.
Debt/equity ratio
SEK thousand Jul 31
2023
Jul 31
2022
Interest-bearing liabilities 78,000 58,050
Equity 1,386,349 1,145,988
Debt/equity ratio 0.06 0.05
Purpose Calculation
Shows to what extent the operations are financed by loans and
describes the company’s financial risk.
Interest-bearing liabilities divided by equity.
Equity/assets ratio
SEK thousand Jul 31
2023
Jul 31
2022
Apr 30
2023
Equity 1,386,349 1,145,988 1,296,669
Total assets 2,728,187 2,089,085 2,736,667
Equity/assets ratio, % 50.8 54.9 47.4
Purpose Calculation
Shows the portion of assets financed with equity. This measure is
used for the purpose of management by objectives in the
operations.
Equity divided by total assets on the balance-sheet date.
Capital employed
SEK thousand Jul 31
2023
Jul 31
2022
Apr 30
2023
Total assets 2,728,187 2,089,085 2,736,667
Non-interest-bearing liabilities 1,263,838 885,047 1,357,736
Capital employed 1,464,349 1,204,038 1,378,931
Purpose Calculation
Shows the portion of the company’s assets that has been
borrowed from, for example, the company’s owners or external
lenders, and shows the company’s profitability in relation to
externally financed capital and equity.
Total assets reduced by non-interest-bearing liabilities.
===== SIDA 25 =====
Sectra’s three-month interim report 2023/2024
25 (28)
Growth in operating profit per share over a five-year period
SEK 12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Operating profit per share before dilution 2.391 2.360
Operating profit per share before dilution five years earlier 1.120 1.125
Growth in operating profit per share before dilution
over a five-year period, %
113.4
110.0
Purpose Calculation
Shows the growth of the operations over a five-year period. This
measure is used for the purpose of management by objectives in
the operations.
Operating profit per share on the balance-sheet date less operating profit
per share on the balance-sheet date five years earlier divided by
operating profit per share on the balance-sheet date five years earlier.
Profit margin
SEK thousand
3 months
May–Jul
2023
3 months
May–Jul
2022
12 months
Aug 2022
–Jul 2023
Full-year
May–Apr
2022/2023
Profit after financial items 77,526 68,172 488,744 479,390
Net sales 583,739 484,089 2,450,403 2,350,752
Operating margin, % 13.3 14.1 19.9 20.4
Purpose Calculation
Shows a comparison of profitability regardless of corporate tax
rate.
Profit after financial items divided by net sales.
KEY FIGURES AND OTHER INFORMATION
Key figures
3 months
Jul 31
2023
3 months
Jul 31
2022
12 months
Jul 31
2023
Full-year
Apr 30
2023
Contracted order bookings, SEK million 2,970.0 2,235.4 5,370.3 4,635.7
of which guaranteed order bookings, SEK million 344.4 705.3 2,245.6 2,606.5
Operating margin, % 11.9 13.3 18.8 19.4
Profit margin, % 13.3 14.1 19.9 20.4
Average no. of employees 1,112 975 1,049 1,015
Cash flow per share, SEK 1, 2 -0.51 -0.33 2.11 2.29
P/E ratio, multiple n/a n/a 84.9 82.9
Share price at end of period, SEK 168.6 185.9 168.6 161.7
Return on equity, % 4.6 4.9 30.2 31.5
Return on capital employed, % 5.5 5.8 36.8 38.2
Equity/assets ratio, % 50.8 54.9 50.8 47.4
Liquidity ratio, multiple 1.7 1.8 1.7 1.6
Equity per share, SEK 2 7.20 5.95 7.20 6.73
1 Cash flow from operations. 2 Before and after dilution.
===== SIDA 26 =====
Sectra’s three-month interim report 2023/2024
26 (28)
Condensed consolidated income statements by quarter
SEK million 2023/2024 2022/2023 2021/2022
Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Net sales 583.7 724.7 580.3 561.7 484.1 649.0 476.2 418.2 405.7
Capitalized work for own use 18.0 20.6 14.7 11.5 9.0 10.6 8.7 13.3 11.6
Other operating income 1.3 0.5 0.5 0.4 0.1 0.4 0.0 0.6 0.3
Operating expenses -509.2 -524.7 -485.2 -443.9 -406.6 -497.1 -395.2 -329.4 -308.4
Depreciation/amortization and
impairment -24.5 -24.3 -23.3 -22.1 -22.2 -21.8 -21.3 -19.0 -19.1
Operating profit 69.3 196.8 87.0 107.6 64.4 141.1 68.4 83.7 90.1
Total financial items 8.2 5.1 4.1 10.7 3.8 0.3 8.6 0.2 2.0
Profit after financial items 77.5 201.9 91.1 118.3 68.2 141.4 77.0 83.9 92.1
Tax on earnings for the period -16.0 -47.3 -18.8 -24.4 -14.0 -29.0 -14.1 -17.6 -19.0
Profit for the period 61.6 154.6 72.3 93.9 54.1 112.5 62.9 66.3 73.1
Key figures by quarter
2023/2024 2022/2023 2021/2022
Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Contracted order bookings, SEK million 2,970.0 1,186.9 549.2 664.2 2,235.4 1,017.4 439.6 470.0 393.2
of which guaranteed order bookings, SEK
million 344.4 811.6 484.0 605.6 705.3 1,017.4 439.6 470.0 393.2
Recurring revenue 397.2 376.6 356.4 316.4 310.4 280.8 275.2 272.4 253.0
of which cloud recurring revenue (CRR) 86.4 72.9 72.1 59.6 50.0 50.5 46.4 42.6 41.9
Operating margin, % 11.9 27.2 15.0 19.2 13.3 21.7 14.4 20.0 22.2
Earnings per share, SEK 1, 2 0.32 0.80 0.38 0.49 0.28 0.58 0.33 0.34 0.38
Cash flow per share, SEK 1, 2 -0.51 1.98 0.43 0.20 -0.33 2.15 0.79 0.21 0.05
Return on equity, % 4.6 12.7 6.5 8.5 4.9 11.0 6.3 6.6 7.8
Return on capital employed, % 5.5 15.6 7.8 10.2 5.8 13.1 7.3 7.8 9.2
Equity/assets ratio, % 50.8 47.4 50.4 52.3 54.9 49.3 52.5 61.3 59.6
Equity per share, SEK 1, 2 7.20 6.73 5.94 5.54 5.95 5.61 4.98 5.38 5.06
Share price at end of period, SEK 2 168.6 161.7 147.44 146.40 185.90 124.80 152.50 209.60 137.20
1 Before and after dilution. 2 Comparative figures per share have been restated due to the 5:1 share split that Sectra carried out in the second quarter of 21/22.
Five-year summary
2022/2023 2021/2022 2020/2021 2019/2020 2018/2019
Contracted order bookings, SEK million 4,635.7 2,320.2 2,651.6 1,816.0 2,132.8
Net sales, SEK million 2,350.8 1,949.1 1,632.4 1,661.1 1,413.5
Operating profit, SEK million 455.7 383.4 350.1 295.3 235.5
Profit after financial items, SEK million 479.4 394.5 348.2 303.0 248.8
Profit for the period, SEK million 375.0 314.8 275.5 237.4 199.0
Operating margin, % 19.4 19.7 21.4 17.8 16.7
Profit margin, % 20.4 20.2 21.3 18.2 17.6
Earnings per share before dilution, SEK 1 1.95 1.63 1.43 1.24 1.04
Earnings per share after dilution, SEK 1 1.95 1.63 1.43 1.23 1.03
Redemption program per share/dividend, SEK 1 2 1.10 1.00 0.90 0.90 0.90
Share price at end of year, SEK 2 161.70 124.80 121.00 84.00 64.40
P/E ratio, multiple 82.9 76.6 84.6 68.0 61.8
Return on equity, % 31.5 31.9 32.2 30.7 29.8
Return on capital employed, % 38.2 37.5 37.4 36.8 35.9
Equity per share before dilution, SEK 1 6.73 5.61 4.65 4.24 3.80
Equity per share after dilution, SEK 1 6.73 5.61 4.65 4.24 3.78
Equity/assets ratio, % 47.4 49.3 54.2 54.1 55.4
1 Comparative figures per share have been restated due to the 5:1 share split that Sectra carried out in the second quarter of 21/22.
2 2022/2023 refers to the share redemption program proposed by the Board of Directors.
===== SIDA 27 =====
Sectra’s three-month interim report 2023/2024
27 (28)
Exchange rates
Currency Average rates in SEK Closing rates in SEK
3 months
May–Jul
2023
3 months
May–Jul
2022
Δ
% Jul 31
2023
Jul 31
2022
Δ
%
US dollar, 1 USD 10.67 10.00 6.7 10.46 10.08 3.8
Euro, 1 EUR 11.62 10.47 11.0 11.53 10.32 11.7
British pound, 1 GBP 13.52 12.32 9.7 13.47 12.32 9.3
GLOSSARY
Genomics
The study of genetic material, meaning an organism’s DNA. In
medicine, a patient’s genetic material is studied to increase
understanding of the causes of disease. In cancer diseases, for
example, a tumor’s mutations are studied in DNA. The genetic
information plays an important role in diagnosing cancer and
customizing treatment, known as precision medicine.
Cardiology/cardiovascular diseases
The field of medicine dealing with the functions and diseases of the
heart.
Critical infrastructure
Basic infrastructure that is essential for the functioning of society,
such as roads, bridges and electricity and water supply.
Encryption
Equipment that uses mathematical manipulations (algorithms and
keys) to encrypt information, so that it can be interpreted or read
only by the intended recipient. To read encrypted information, the
recipient must have the correct key and algorithm.
The cloud/cloud solutions
From the term cloud computing, meaning delivering services and
sharing IT infrastructure over the internet.
Ophthalmology
A specialist medical area for the diagnosis and treatment of eye
disorders.
Orthopaedics
A surgical specialty for disorders affecting the musculoskeletal
system.
Pathology/histopathology/microscopy
A specialized medical area that uses tissues and body fluids for
diagnostic purposes.
Precision medicine
Providing patient care that is highly adapted to individual
conditions. Advanced diagnostic analyses are a cornerstone of
precision medicine.
Radiology
A health science discipline and medical specialty that uses
technologies for imaging the human body, such as X-ray,
magnetic resonance imaging (MRI) and ultrasound.
Sectra One/Sectra One Cloud
A subscription for Sectra’s enterprise imaging solution. Under
the new model, customers pay a more evenly distributed
subscription fee every year instead of paying a higher license
fee for software at the start of the contract and a lower rolling
service fee. The fee is determined based on the functionality
used and the number of different services utilized. When Sectra
One is sold as fully cloud-based services, it is referred to as
Sectra One Cloud.
High assurance/High assurance products
Cryptographic methods and other measures designed to prevent
unauthorized parties from accessing or influencing information in
telecom and IT systems. The high assurance products that
Sectra provides are approved by one or more nations and, for
certain products, by the EU and NATO.
===== SIDA 28 =====
Sectra’s three-month interim report 2023/2024
28 (28)
ABOUT SECTRA
Vision
To contribute to a healthier and safer society.
Mission statements
To increase the effectiveness of healthcare, while maintaining or increasing
the quality of care.
To strengthen the stability and efficiency of society’s most important
functions through solutions for critical IT security.
Operating areas/business models
Imaging IT Solutions helps hospitals across the world to become more
efficient, enabling them to care for more patients and save more lives.
Increased use of medical images and aging populations that are living longer
pose huge challenges to healthcare. Sectra’s IT solutions and services for
medical diagnostic imaging enable greater efficiency and cont ribute to
healthcare advancements. Sectra has exceeded 2,000 installations of medical
IT systems, and customers include some of the largest healthcare providers
in the world.
Secure Communications helps society's critical functions, government
officials and diplomats to use modern technology to exchange information
securely, thereby contributing to a stable and secure society. Sectra’s
solutions and services increase cybersecurity by protecting some of society’s
most sensitive information and communications. Several of the business
area’s products are approved by the EU, NATO, and national security
authorities.
Business Innovation gathers smaller activities that could eventually lead to
major growth in Sectra’s main areas or related niches.
Group-wide strategies for value creation and sustainable
business development
Customer value is the top priority
Customers and customer satisfaction are always assigned top priority to
enable long -term growth. Close relationships with demanding customers
ensure that Sectra’s solutions meet market demands for quality, functionality
and usability.
A motivating corporate culture
A corporate culture that motivates and inspires the company’s employees to
solve customer problems and constantly drive improvement. All so we can
meet—and in many cases exceed—customer expectations.
Constant innovation
Close cooperation with customers, universities an d industrial partners in
order to identify needs and ideas, combined with a corporate culture where
management encourages the employees to test out new ideas and projects.
Geographic expansion
International expansion mainly in areas and regions where Sectr a holds an
established position. This expansion will primarily be achieved through
organic growth, in certain cases supplemented by acquisitions that strengthen
the Group’s organic growth.
For more information, visit https://investor.sectra.com
7 good reasons to invest in Sectra
International niche markets with strong growth
IT for healthcare and cybersecurity for critical social
functions are rapidly changing markets that society needs
to invest in. This creates major growth opportunities for
companies such as Sectra.
Stability, profitability and long-term growth
Sectra has an over 45 -year history of growth and
profitability. Over 50% of the company’s sales comprise
recurring revenue from long-term customer contracts.
Customer-focused corporate culture
A strong corporate culture clearly focused on customer
value and employees who are passionate about making a
difference lead to satisfied customers. To safeguard our
corporate culture, growth is primarily organic.
Strong brand with multinational reach
Sectra is an established brand in niche areas where trust
and stable products are highly important success factor s.
We have a multinational reach, with thousands of
customers worldwide.
Innovation
By continuously investing in new and enhanced products
and services, as well as how they are packaged and
delivered, we create value for our customers. We also
have a sel f-financed portfolio of research and business
projects with the potential to add significant value in the
future.
Sustainable business model
Contributing to healthier and safer societies is the
foundation of Sectra’s operations and business model.
Helping our customers improve the efficiency and quality
of patient care and increase cybersecurity in critical social
functions is our most significant contribution to a
sustainable society.
Long-standing owners and dedicated management
The principal owners, who have been part of the company
since the 1980s, have firm dedication to the long-term
development of the company, and all members of Group
Management are shareholders.