IBA Reports Full Year Results for 2016

 - Group revenues up 21.6% to EUR 329 million
 - Record REBIT up 25.7% to EUR 37 million, at 11.3% of revenues
 - Proton Therapy and Other Accelerators backlog EUR 336 million

Louvain-la-Neuve, Belgium, March 23, 2017 - IBA (Ion Beam Applications SA), the world’s leading provider of proton therapy solutions for the treatment of cancer, today announces its audited consolidated annual results for the 2016 financial year.

2016 Financial Highlights:

- Group revenues for the full year ending 31 December 2016 of EUR 328.8 million, up 21.6% from EUR 270.4 million at 31 December 2015
- Proton Therapy and Other Accelerators revenue growth of 30% to EUR 280.7 million, up from EUR 216.2 million at 31 December 2015
- Dosimetry sales of EUR 48.1 million, down 11.1% compared to an unusually strong FY 2015, due to slow conversion rate, but improving over Q4
- Highest ever REBIT for the Company at 11.3%, up 25.7% from 2015
- Net profit of EUR 24.4 million, down from EUR 61.2 million in 2015
- 2016 was impacted by around EUR 8 million of non-recurring expenses mostly from one-off incentives to staff, reorganizational costs and write-offs on some minor lossmaking contracts, as well as a financial charge of EUR 1.4 million
- 2015 had been impacted by more than EUR 30 million non-recurring profits, including the capital gain on exit from the Molecular business in 2015 as well as EUR 3.2 million financial profit essentially from FX gains
- Net cash of EUR 44.5 million (EUR 50.0 million at end of 2015)
- IBA’s Board of Directors will recommend to the General Assembly the distribution of a dividend of EUR 0.29 per share, representing more than 35% of its net profit, continuing the regular rate from 2015 (excluding the exceptional dividend distributed following the sale of the Molecular business)
- Outlook:
- Revenue growth guidance maintained at around 15% to 20% in 2017 and double digit thereafter
- REBIT margin guidance of approx. 11% to 12% in 2017; increasing to 13% – 15% in 2018 and stabilizing at 15% by 2020
- 30% dividend pay-out ratio target maintained for 2017

2016 Business Highlights:

- Proton Therapy and Other Accelerators order intake of EUR 228 million (2015: EUR 221 million), comprising five Proteus®ONE* and three Proteus®PLUS* solutions, totaling 17 rooms, and 14 Other Accelerator orders
- Strong system upgrade sales in 2016: EUR 19.5 million worth of upgrades sold in all business lines, in particular at PT sites in US and Europe
- Strong sales in Other Accelerators boosted by introduction of new Cyclone®KIUBE accelerator
- 42 ongoing Proton Therapy service and long-term maintenance contracts signed, representing a backlog of EUR 673.3 million over the next 10-15 years, up 17% YoY from 33 contracts, representing EUR 575.0 million
- High period-end backlog for Proton Therapy and Other Accelerators at EUR 335.5 million, slightly above YE 2015. Dosimetry backlog at EUR 17.9 million, slightly down versus EUR 18.4 million in 2015
- Strategy to meet increasing global demand on track:
- Recruitment of 400 engineers completed. Plan to recruit another 200 engineers in 2017
- Production capacity scale-up commenced (9000 m² facility under construction)
- Strengthening of management team with appointment of Jean-Marc Bothy as Chief Strategy Officer and Soumya Chandramouli as Chief Financial Officer

Olivier Legrain, Chief Executive Officer of IBA, commented: “Our proton therapy business continues to grow internationally with top line growth being driven, in particular, by our single room solution Proteus®ONE, and also from increasingly important revenue from service contracts and system upgrades. We anticipate that this momentum will continue in 2017 and beyond, especially as the investments in the scale up of our production enable greater efficiencies and operating leverage to make proton therapy even more affordable.”