IBA Reports Half Year 2022 Results

Louvain-la-neuve, BELGIUM


RECORD ORDER INTAKE AND BACKLOG ACROSS THE GROUP

HIGHLY ACTIVE PIPELINE FOR ALL BUSINESS LINES

SOLID BALANCE SHEET WITH RECORD EUR 137 MILLION NET CASH

Louvain-la-Neuve, Belgium, 31 August 2022 - IBA (Ion Beam Applications S.A), the world leader in particle accelerator technology, today announces its consolidated results for the first half of 2022.

(EUR 000)H1 2022H1 2021VarianceVariance %
 Total Net Sales160 032137 18322 84916.7%
  Proton Therapy103 02670 47332 55346.2%
  Other Accelerators30 11040 285-10 175-25.3%
  Dosimetry26 89626 4254711.8%
 REBITDA14 0655 7458 320144.8%
    % of Sales8.8%4.2%  
 REBIT4 5646743 890577.2%
    % of Sales2.9%0.5%  
 Profit Before Tax297-8431 140135.2%
    % of Sales0.2%-0.6%  
 NET RESULT-1 717-1 93521811.3%
    % of Sales-1.1%-1.4%  

Financial summary

  • Total H1 Group revenues of EUR 160 million, up 17% on the same period last year, largely due to increased activity and backlog conversion
  • Gross margin was 39%, an improvement versus 33% last year in absolute value as well as percentage of sales largely thanks to increased activity in Proton Therapy (PT) equipment, in particular in US and Asia, a high-margin product mix and the indemnities recognized following the Rutherford bankruptcy. The gross margin also positively benefited from forex impacts, thanks to the strengthening of USD
  • Strong order intake of EUR 175 million for Proton Therapy and Other Accelerators, with revenues up 20%
  • PT equipment revenues improved strongly, up 115% to EUR 51.6 million as backlog conversion accelerated
  • Order intake for Dosimetry remained strong at EUR 30 million, representing an increase of 11% versus last year and highlighting the resilience of this business unit
  • Whilst order intake remained strong, Other Accelerators equipment revenue decreased by 35% to EUR 19.5 million from EUR 30.1 million last year, due to backlog conversion still being impacted by COVID-19 restrictions and also by a few supply chain challenges. It is expected that some of these challenges will be resolved in H2, allowing for a sharp increase in new installations
  • Continued strong performance of Services with PT revenue increasing 11% versus H1 2021
  • Equipment and upgrade backlog reached an all-time high of EUR 497 million, with record overall equipment and services backlog of EUR 1.2 billion
  • Positive H1 2022 REBIT of EUR 4.6 million (H1 2021: EUR 0.7 million) reflecting a high level of order intake and contract execution, a growing service business and indemnities following Rutherford bankruptcy
  • Total Group net loss of EUR 1.7 million (H1 2021: EUR 1.9 million)
  • Very strong balance sheet with EUR 202 million gross cash and EUR 137 million net cash position. EUR 37 million undrawn short-term credit lines still available
  • 2021 share buyback program completed in March 2022 for total of 302,451 shares

Business summary

  • Three Proteus®ONE1 systems sold in the US and Europe
  • First project under the IBA-CGNNT partnership signed for a Proteus®PLUS1 system (three rooms) in China
  • In Other Accelerators, 21 new systems sold in H1 and one further system sold post-period end with pipeline remaining promising
  • One new installation in PT and nine installations in Other Accelerators started in H1 despite ongoing pandemic-associated restrictions in some geographies, with stable service business
  • Two proton therapy centers started to generate service revenues over the period in the USA and Asia
  • Four-year collaboration signed with University Medical Center Groningen (UMCG) to investigate the potential of IBA’s ConformalFLASH®2 technology for the treatment of early-stage breast cancer
  • Acquired Modus Medical Devices Inc. (Modus QA), strengthening IBA’s Dosimetry operations in North America and adding one of the most comprehensive dosimetry “phantom” offerings on the market
  • Launched new low energy compact cyclotron, the Cyclone® KEY
  • Announced a partnership agreement with Tractebel to support IBA’s customers with their proton therapy design and construction projects
  • Launched the ConformalFLASH® Alliance, the first collaboration platform between academia and industry to bring ConformalFLASH® proton therapy to the clinic

Post-period highlights

  • In August, IBA announced a multi-year research collaboration on ConformalFLASH® Proton Therapy with Fred Hutchinson Cancer Center and the University of Washington
  • In August, IBA qualified as the only supplier for the second round of a public tender launched by the Spanish Ministry of Health to provide ten proton therapy units across the country
  • In August, the company also announced the sale of its fourth Cyclone® IKON, a new high-energy accelerator for the production of novel isotopes in theranostics and targeted therapies, to CNRT in China
  • Finally, also in August, IBA signed a strategic alliance in its Dosimetry business with ScandiDos, acquiring a 9.1% stake in the Swedish company

Olivier Legrain, Chief Executive Officer of IBA commented: “IBA’s excellent order intake across all business lines in the first half of the year reflects our continued resilience despite ongoing macro-economic challenges and gives us great visibility on our positive future performance. Our Radiopharmaceutical and Sterilization divisions in particular delivered record order intakes, indicating further accelerating market dynamics. We have continued to see a strong revival in the Proton Therapy business with revenues up significantly versus the same period last year, partly driven by accelerated backlog conversion. The pipeline remains highly promising with a number of active leads, in all key regions across the globe. Whilst supply chain issues and some ongoing pandemic restrictions have continued to impact the business, especially in Other Accelerators, we have mitigating strategies in place and expect an uptick in installations in the second half of the year.

“The continued strength of our balance sheet provides us with a foundation on which to grow both organically and inorganically and there are significant opportunities across all business units. In Dosimetry, targeted bolt-on acquisitions have strengthened our offering in strategically important areas. In Other Accelerators we remain excited about the growth potential of theranostics and  medical sterilization, where IBA continues to lead. Finally, in Proton Therapy we believe that ConformalFLASH® and DynamicARC®3 will be significant drivers of future growth in this treatment modality, and we have been pleased to announce two significant research collaborations in 2022 so far. 

“As we look ahead, there remain clear challenges with pandemic restrictions persisting in China and a complex geopolitical situation in Europe which have resulted in inflation and supply chain issues. We are, however, well positioned to weather these challenges with a highly active pipeline, an all-time high backlog and increasing recurring revenues.”

***ENDS***

Olivier Legrain, Chief Executive Officer, and Soumya Chandramouli, Chief Financial Officer, will host a conference call and webcast, conducted in English, to present the Half Year results, followed by a Q&A session.

This conference call will be held today, Wednesday, 31 August 2022, at 3pm CEST / 2pm BST / 9am EDT / 6am PDT as a Teams webinar and can be accessed online on this link.

If you would like to join by phone only, please dial (Phone conference ID 495 140 424#):

Belgium:                     +32 2 890 97 20
UK:                             +44 20 3321 5200
NL:                              +31 20 708 6901
LU:                              +352 27 87 00 02
US:                             +1 347-991-7591
FR:                              +33 1 70 99 53 51

The presentation will be available on IBA’s investor relations website and on:
https://www.iba-worldwide.com/content/iba-half-year-results-2022-press-release-and-presentation  shortly before the call.

To ensure a timely connection, it is recommended that users register at least 10 minutes prior to the scheduled webcast.

For participants who do not have the Teams application installed, please follow the process described in this link to access the conference.

Financial calendar
Business Update Q3 2022                                        17 November 2022

About IBA
IBA (Ion Beam Applications S.A.) is the world leader in particle accelerator technology. The company is the leading supplier of equipment and services in the field of proton therapy, considered to be the most advanced form of radiation therapy available today. IBA is also a leading player in the fields of industrial sterilization, radiopharmaceuticals and dosimetry. The company, based in Louvain-la-Neuve, Belgium, employs approximately 1,600 people worldwide. IBA is a certified B Corporation (B Corp) meeting the highest standards of verified social and environmental performance.

IBA is listed on the pan-European stock exchange EURONEXT (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB).

More information can be found at: www.iba-worldwide.com

For further information, please contact:

IBA
Soumya Chandramouli
Chief Financial Officer
+32 10 475 890
Investorrelations@iba-group.com

Olivier Lechien
Corporate Communication Director
+32 10 475 890
communication@iba-group.com

For media and investor enquiries:
Consilium Strategic Communications
Amber Fennell, Angela Gray, Lucy Featherstone
+44 (0) 20 3709 5700
IBA@consilium-comms.com




1 Proteus®PLUS and Proteus®ONE are brand names of Proteus 235

2 ConformalFLASH® is a registered brand of IBA’s Proton FLASH irradiation solution currently under research and development phase.

3 DynamicARC® is a registered brand of the IBA’s Proton Arc therapy solution currently under development phase.


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310822_IBA-HY22-Results-EN