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The 2022/2023 financial year in brief

There is a great need for Sectra’s products and services, which help customers provide patients with the best possible care and increase cybersecurity in society. During the fiscal year, Sectra won larger orders than ever before, received distinctions for high levels of customer satisfaction and cybersecurity, and was also ranked as one of the best employers in Sweden. Satisfied customers and happy employees are reflected in the financial performance.

CEO comments

“A long-term and sustainable future is created through satisfied customers and happy employees.”

Torbjörn Kronander, President and CEO of Sectra

CEO letter | Annual Report 2022/2023 Watch recording of Year-end report presentation

A selection of financial performance measures

2,351

Net sales
SEK million

456

Operating profit
SEK million

4,636

Order bookings
SEK million

2.29

Cash flow per share
SEK

1.95

Earnings per share
SEK

1.10

Share redemption program
per share SEK
(Proposal to the 2023 AGM)

Highlights 2022/2023 fiscal year
Highlights 2022/2023 fiscal year
  • Our ability to make our customers successful, which is one of our fundamental strategies, enables us to grow.
  • Internal and external measurements show that Sectra is an equal opportunity workplace with satisfied employees and a strong culture.
  • The Group’s order intake, sales and operating profit exceed previous records. All financial goals have been met.
  •  Sectra’s radiology module, Sectra PACS, wins awards for highest customer satis faction. This marks Sectra’s tenth consecutive win in the US, its fourth consecutive win in Canada and its second consecutive win in Asia/Oceania.
  • Major, long-term customer contracts lead to historically high levels of contracted order bookings. The two largest contracts are with Region Hovedstaden in Denmark and the Health and Social Care Service in Northern Ireland.
  • Continued growth in our single largest market, the US, where large regional healthcare providers sign agreements with Sectra.
  •  A growing number of healthcare providers around the world choose Sectra, and sales increase in all geographic markets.
  • Sectra strengthens its position in the digital pathology market through orders from hospitals in countries including Denmark, France, the UK, South Korea and the US. More than 1.5 million cases so far have been reviewed with Sectra’s pathology solution.
  • More customers choose the Sectra One subscription service, often delivered as a cloud service, resulting in increased recurring revenue.
  • Start of a new business unit, Genomics IT, for innovation and development of additional IT support for precision diagnostics. This area is important for cancer diagnostics and supplements our offerings in pathology and radiology.
  •  The next generation of cloud-based education portals is launched, and the number of users of Sectra’s cloud service for medical education grows significantly.
  • Several customers in Canada and the US include Sectra’s orthopaedics services in their subscription agreements for medical imaging IT.
  • The journal Acta Orthopaedic publishes a follow-up study where the Sectra Implant Movement Analysis (IMA) service was used in cases of a suspected loose implant. The study shows that the likelihood of a correct diagnosis increases significantly when using IMA compared with plain X-rays.
  • Research results pave the way for clinical benefits of AI.
  •  Many countries are increasing their investments in defense and public security. Sectra’s ability to help customers with these needs leads to increased order bookings and an improved financial performance.
  • Magnus Skogberg takes office as the new President of the operating area.
  • The Dutch Ministry of Defense expands its use of the Sectra Tiger/S mobile encryption system to include secure file sharing at the highest classification level.
  • Swedish authorities expand their partnership with Sectra through new orders of systems and solutions to strengthen the Swedish civil and military defense’s ability to communicate securely.
  • NATO approves the most recent version of Sectra Tiger/S. The product includes new functions that help officials exchange information even more securely and efficiently. Customers in NATO countries order Sectra Tiger/S devices, including an authority in Finland.
  • An energy company orders Sectra’s service for monitoring operational systems, which helps customers detect risks and vulnerabilities before they affect daily operations.

The security situation in Europe is contributing to greater uncertainty than normal. With a strong financial position, positive cash flows and a significant share of recurring revenue, we are well equipped to manage specific external factors.

In the full Annual Report and Sustainability Report you will find further reading about risk management and how Sectra is addressing risks and uncertainties.

Examples of the values created for society and other stakeholders

Customers

  • Increased productivity, high quality and security in the healthcare sector, particularly in the use and management of medical images.
  • Easier planning and monitoring of orthopaedic procedures.
  • Health and social care students and employees who are better prepared for working life.
  • Protection against eavesdropping, unauthorized data access and cyberattacks

Patients

  • Faster diagnosis and treatment, especially in areas related to illnesses among the elderly.
  • More reliable diagnoses yield better care outcomes.
  • Increased access to specialists, regardless of where care is sought.
  • Increased security regarding patient data.

Society and citizens

  •  Increased efficiency and quality in medical diagnostic imaging and patient care.
  • Increased cybersecurity in critical social functions.
  • Job opportunities and tax payments in the countries where we operate.
  • Innovations and research results that could contribute to a healthier and safer society and a lower climate impact.

1,100+

Total number of employments in 14 countries

10–15

Percentage of sales re-invested in R&D for increased customer value

263

Purchase of goods for resale from suppliers, SEK million

1,118

Salaries and other remuneration of the President and employees, SEK million

Our focus on sustainability

Sectra’s vision is to contribute to healthier and safer societies. Achieving this requires satisfied customers and employees as well as long-term, responsible action as a company on behalf of all stakeholders. That is why we focus our efforts in these sustainability areas.

Satisfied customers

The value we create for customers is Sectra’s largest contribution to more sustainable societies. We help our customers provide more patients with the best care possible and protect communication and critical infrastructure in today’s digital society. Our work helps make people’s lives healthier and safer.

 

Satisfied employees

Having satisfied and dedicated employees is a precondition for delivering maximum customer value. We safeguard our corporate culture, fair working conditions, equality and diversity.

 

Responsible conduct

Our approach to conducting long-term sustainable operations can be summarized as follows: treat our customers and other stakeholders as we would like to be treated ourselves. This leads to successful teamwork and prosperous business. It also includes taking responsibility for the environment and climate, following fair business principles, counteracting corruption and respecting human rights.

 

Social action:
Cloud technology and a strong corporate culture
assist radiologists in Ukraine

Sectra's radiology solution

The Russian invasion of Ukraine made it difficult for radiologists in the country to review radiology images and dictate results. Healthcare personnel were conscripted, relocated, or simply chose to leave the country. Ukraine maintained a functioning internet, which enabled Sectra and Microsoft to act together on a request for assistance. As a result, physicians in the Sumy region now review about 1,000 examinations per month using Sectra’s enterprise imaging solution, available via Microsoft Azure cloud service.

This is a project that is outside the box in many ways. These needs subsist in a region in which we are not typically active. The project is being conducted without allocated resources, without knowledge of the language, without easy access to healthcare personnel and without any payment in return. Instead, we have an extremely strong desire to act, stable and easy-to-use technology and a corporate culture that gives our employees the authority to make decisions.

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Download a copy of the year in brief 2022/2023

The year in brief 2022/2023 [ENG] The year in brief 2022/2023 [SWE]
For the full story, read our Annual Report and Sustainability Report

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