Ten-year summary

• 55% increase in cloud recurring revenue
• Continued international expansion
• Dampening effect on financial outcomes due to currency fluctuations

• Record-high contracted order bookings due to growing customer contracts
• Positive impact of SEK 110 million on operating profit from a patent settlement
• Dampening effect on financial outcomes due to currency fluctuations

• Strong order bookings and growing cloud business
• Rapid transformation to cloudbased solutions
• Favorable currency movements and strong growth compensate for the dampening effects from the transition of the business model

• Healthy order book
• Expansion in enterprise imaging
• Sharp increase in recurring revenue
• Tailwind from currency fluctuations

• More and larger customer projects than before
• Operating profit exceeded previous records
• Lingering COVID-19 pandemic

Although the COVID-19 pandemic and major currency fluctuations have temporarily dampened sales in some markets, demand for Sectra’s offering is growing. With the most satisfied customers in the market for many years, Sectra is winning new, extensive customer contracts. This fiscal year was the strongest to date in terms of earnings, and the Group’s three financial goals were exceeded. The operating margin was well over the target of 15%, mainly due to the effect of temporarily lower costs for travel and trade fair events as a result of pandemic restrictions.

Long-term efforts in creating value for customers, patients and society at large resulted in the best earnings year in Sectra’s history. All operating areas are growing. Geographically, operations in the US represented the single largest growth in sales, thus overtaking Sweden as our largest market.

New multiyear customer contracts contributed to record-high order bookings, laying the foundation for stable growth over the long term. Successful medical IT system sales in the US and Australia as well as Sectra’s new growth markets of Canada and France. Increasing synergies between medical IT and cybersecurity had a positive effect on the Group’s performance.
The consolidated financial statements and segment reporting were retroactively restated. Read more about the effects in the 2018/2019 Annual report, page 76. The changes do not impact the current year’s or future cash flows.

The trend in order bookings improved and the fiscal year ended with a healthy order book and positive trends with respect to net sales and operating profit. All financial goals were exceeded. Geographically, Sectra displayed sales growth in essentially all markets, with the largest increases reported in the Netherlands, Sweden and the US. Secure Communications grew rapidly and once again reported profitability. All shares in the associated company Commit; Oy were divested, which had a nonrecurring positive effect on net financial items. The Board of Directors proposed that SEK 171.5 million be transferred to the shareholders.

Sales growth in a number of markets. The outcome in the UK was adversely impacted by currency effects in GBP following the Brexit vote. The future focus on new geographic markets, such as France, and new product areas, such as digital pathology and critical infrastructure, had a negative effect on the earnings trend, but offer major growth potential. All financial goals were exceeded, with positive trends with respect to net sales, operating profit and cash flow. Sectra establised a new subsidiary in Canada for direct sales. The company transferred SEK 170.7 million to the shareholders.