IBA TRADING UPDATE - THIRD QUARTER 2017

PROTON THERAPY AND OTHER ACCELERATORS PROJECTS ON TRACK, DOSIMETRY SALES UP 20%, GUIDANCE REITERATED

Louvain-La-Neuve, Belgium, 16 November 2017 - IBA (Ion Beam Applications S.A., EURONEXT), the world’s leading provider of proton therapy solutions for the treatment of cancer, today announces its trading update for the third quarter ending 30 September 2017.

Olivier Legrain, Chief Executive Officer of IBA commented: “Our performance in the third quarter continues to reflect the challenges reported at the time of our half year results. However, the proton therapy market remains buoyant and demand for IBA’s leading offering is high, with over five systems in the last stages of negotiation. Revenue recognition from our ongoing projects is on track and Dosimetry and Services continue to demonstrate good revenue and backlog growth. Furthermore, the collaborations announced with Elekta and Vinci Construction during the quarter give us an even more competitive and attractive offering for our customers worldwide.

We continue to build upon our world leading position in proton therapy, our production expansion remains on track and will assist us in our aim to bring the most technologically advanced and commercially attractive offering to established and growing markets globally.”

Financial Highlights
  •  Revenues for the first nine months to 30 September 2017 of EUR 217.3 million, down 3.6% compared to the same period in 2016. This is due to a lower order intake and project rescheduling in Proton Therapy and Other accelerators equipment (-15%), compensated by excellent Dosimetry performance (+20%) and strong growth of service revenues in Proton Therapy and Other Accelerators (+8.6%).
  • Proton Therapy and Other Accelerators orders at end of Q3 totalling EUR 76.7 million comprising two Proteus®ONE* and one Proteus®PLUS* and five other accelerators.
  • Proton Therapy and Other Accelerators service revenues up 8.6% to EUR 62.6 million.
  • Proton Therapy and Other Accelerators backlog remains high at EUR 284 million for equipment and EUR 682 million for services.
  • Dosimetry backlog at EUR 15.4 million, as pre-2016 orders convert to sales.
  • Net cash position of EUR -2.5 million at the end of Q3 2017, compared with EUR 36.1 million at the end of Q3 2016.

Business highlights (including post-period end)
  • Installation of 25 international proton therapy projects ongoing.
  • Proton Therapy and Other Accelerators orders at end of the third quarter totalling EUR 76.7 million, comprising two Proteus®ONE* and one Proteus®PLUS* (three projects and four rooms in total) and five other accelerators. This order intake also includes upgrades for EUR 4.7 million.
  • First patient treated with Proteus®ONE solution at Beaumont Proton Therapy Center in Royal Oak, MI, USA, in less than 12 months from shipment to treatment as well as a new research agreement signed with the center to develop the next generation proton therapy delivery technique called scanned proton arc therapy (SPArc).
  • International collaborations announced with:
    • Elekta, to develop new functionality for proton therapy treatment in Elekta’s treatment planning system and oncology information system as well as the co-marketing of each other’s products.
    • Vinci Construction, to collaborate in offering dedicated proton therapy project design and construction support.