IBA Reports Half Year Results for 2017

- Group revenues up 4.5% to EUR 152 million
- Growing backlog in equipment of EUR 321 million and services backlog of EUR 689 million, up 21%

Louvain-La-Neuve, Belgium, August 24, 2017 - IBA (Ion Beam Applications SA, EURONEXT), the world’s leading provider of proton therapy solutions for the treatment of cancer, today announces its consolidated results for the first half of 2017.

Financial highlights
- Total Group H1 revenues of EUR 151.6 million, up 4.5% (H1 2016: EUR 145.1 million) impacted by Proton Therapy project delays
o Proton Therapy and Other Accelerators revenue of EUR 123.3 million, up 1.7%
o Dosimetry revenue up 18.7% to EUR 28.4 million
- REBIT margin of 1.3% impacted by slow order intake, revenue recognition delays and one off exceptional items
- Over EUR 1 billion equipment and service backlog comprising a growing period-end equipment backlog for Proton Therapy and Other Accelerators of EUR 321 million and growing services backlog of EUR 689 million, up 21% from H1 2016
- Gross cash of EUR 50 million and net cash position of EUR 21.2 million
- Guidance updated to:
o FY17: 5-10% revenue growth and a low to mid-single digit REBIT margin
o 2018/2019: flat to mid-single digit revenue growth and a mid to high single digit REBIT margin
o Mid-term: High single-digit to low double-digit revenue growth and 13 to 15% REBIT margin
o Dividend policy remains unchanged
 
Business highlights
- H1 order intake comprising two Proteus®ONE* systems sold in Egypt and Spain and one Proteus®PLUS* solution sold in Virginia, USA
- Completion of review into Proton Therapy project management; enhanced systems in place and all projects on track with revised timelines
- Updated guidelines from the American Society for Radiation Oncology (ASTRO) and National Comprehensive Cancer Network (NCCN) further endorse proton therapy as a treatment option in the fight against cancer

Olivier Legrain, Chief Executive Officer of IBA SA commented: “Whilst the first half of 2017 has been challenging for IBA, we have worked tirelessly to rectify the issues with project management, including enhanced systems to manage the risk profile of projects, the creation of dedicated regional project management, improved internal processes and discussions with dedicated construction partners. We are encouraged by our strong pipeline and a backlog of equipment and services which now stands at over EUR 1 billion and are pleased with the strong growth from our Dosimetry business over the period.
The prospects for the proton therapy market remain strong, we have a burgeoning pipeline and the recent update of ASTRO and NCCN guidelines demonstrate the growing acceptance of proton therapy as a treatment modality for cancer. However, following on from a period of intense growth, the first half of 2017 has been slower, in line with the customary lumpiness which characterizes the proton therapy market. This combined with the increasing competition in the market is leading to limited visibility on the timing of new orders. However, IBA is optimally positioned to capitalize on the prospects on the proton therapy market and retains its focus on driving projects forward and leading the market with the most attractive proton therapy offering.”