Ion Beam Applications : IBA Reports Half Year 2021 Results

Corporate

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25.08.2021

Open the pdf document in the right column to read the full press release including the operating review

25% SALES GROWTH AND STRONG IMPROVEMENT IN REBIT LINKED TO INCREASED ACTIVITY AND ACCELERATED BACKLOG CONVERSION

STRONG BALANCE SHEET WITH EUR 69 MILLION NET CASH

B-CORP CERTIFICATION IN RECOGNITION OF STAKEHOLDER COMMITMENT

Louvain-la-Neuve, Belgium, 25 August 2021 - IBA (Ion Beam Applications SA), the world leader in particle accelerator technology, today announces its consolidated results for the first half of 2021.

H1 2021​ (EUR 000)​	H1 2020​ (EUR 000)​	Variance​ (EUR 000)​	Variance​ %​
Net Sales​	137 183​	109 733​	27 450​	25.0%​
PT & Other Accelerators​	110 758​	85 541​	25 217​	29.5%​
Dosimetry​	26 425​	24 192​	2 233​	9.2%​
REBITDA​	5 745​	-3 983​	9 728​	​
% of Sales​	4.2%​	-3.6%​	​	​
REBIT​	674​	-9 940​	10 614​	​
% of Sales​	0.5%​	-9.1%​	​	​
Profit Before Tax​	-843​	-11 826​	10 983​	​
% of Sales​	-0.6%​	-10.8%​	​	​
NET RESULT​	-1 935​	-12 043​	10 108​	​
% of Sales​	-1.4%​	-11.0%​	​	​

Olivier Legrain, Chief Executive Officer of IBA commented: 'Our focus on execution in the first half has resulted in impressive sales growth and a strong improvement in REBIT. Whilst the challenges from COVID-19 continue to impact the business, the Group's resilience is evident. With a very strong order intake for Other Accelerators and good momentum in Proton Therapy and Dosimetry we are confident in maintaining our solid performance in the second half and beyond.

'Looking regionally, Asia continues to be an area of paramount strategic importance for IBA, but we have also made progress elsewhere, with new sales in the US and in emerging markets. We are also seeing potential for IBA in the growing space of theranostics and we continue to develop our position in this exciting market. Finally, our firm commitment to a stakeholder approach and to meeting our ambitious ESG goals is reflected in our recent B-Corp certification.

'With our increasingly strong balance sheet, IBA will continue to invest in the emerging technologies of the future whilst seeking value-enhancing business development opportunities as we look to drive long-term sustainable growth.'

Financial summary

• Total H1 2021 Group revenues of EUR 137.2 million, up 25%, primarily driven by increased activity and backlog conversion versus the same period last year
• Gross margin improvement of 1.1 bp versus H1 2020 driven by product mix and stringent cost management
• Order intake of EUR 78.8 million for Proton Therapy and Other Accelerators with revenues up 29.5% to EUR 110.8 million as a result of improving backlog conversion
• Proton Therapy equipment revenues improved strongly, up 129% to EUR 24 million as backlog conversion accelerated strongly
• Other Accelerators equipment revenue increased by 62% to EUR 30.1 million, reflecting continued order intake, production and backlog conversion
• Resilient performance for Dosimetry with strong order intake of EUR 26.8 million reaching the same level as last year and revenue up 9.2% to EUR 26.4 million in H1 2021
• Stable performance of Services as centers remain fully operational
• Equipment backlog reached an all-time high of EUR 429 million and overall equipment and services backlog remains high at EUR 1.1 billion
• Positive H1 2021 REBIT of EUR 0.7 million (H1 2020: EUR 9.9 million loss) reflecting continued strong recovery
• Total Group net loss of EUR 1.9 million (H1 2020: EUR 12 million loss)
• Strong balance sheet with EUR 69 million net cash position (FY 2020: EUR 65 million) and (unaudited) net cash position of over EUR 110 million at date of publication
• 2021 share buyback program launched at end June 2021 for a total of 250,000 shares

Business summary

• Received B Corporation ('B Corp') certification in June
• Proteus®ONE* selected by Advocate Radiation Oncology for new proton therapy center in Florida
• In Other Accelerators, 14 new sales recorded over the first half and three additional machines sold post-period end. Excellent performance driven by growth in new geographies and further strengthening of IBA's market leadership
• One new installation started in PT and 13 installations in Other Accelerators started in H1 despite pandemic
• New high-energy cyclotron, the Cyclone® IKON, launched with enhanced availability of theranostic radiopharmaceuticals
• Collaboration with NorthStar Medical Radioisotopes expanded to enable global availability of diagnostic radioisotope technetium-99m (Tc-99m)
• Initiation of global DynamicARC®[1] Consortium for the roll-out of Proton Arc Therapy

Post-period highlights

• In August, the first down payment was received for a five-room Proteus®PLUS* solution in China
• Post closing, the Group signed three new contracts for the sale of equipment in the Other Accelerators market in Europe, Middle East and South America.
• In July and August, the Group continued its share-buyback program. As of August 20, 2021, the Group had purchased 141,794 additional treasury shares since June 30, 2021
• In August, IBA announced the launch a large-scale, multi-institutional, randomized controlled clinical trial in conjunction with 19 industry and academic partners. The consortium will conduct the 'ProtectTrial' in esophageal cancer with the aim of improving access to proton therapy for patients, whilst validating a model-based approach for the use of proton therapy treatment in cancer more broadly

***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,25 August 2021, at 3pm CEST / 2pm BST / 9am EDT / 6amPDT 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 646 384 377#):
Belgium: [phone]
UK: [phone]
NL: [phone]
LU: [phone]
US: [phone]
FR: [phone]

The presentation will be available on IBA's investor relations website and on: https://www.iba-worldwide.com/content/half-year-2021-results-press-release-and-web-conference 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

ASTRO Capital Markets Day 24-27 October 2021 (TBC)
Business Update Q3 18 November 2021
Full Year Results 24 March 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 1,500 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

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

[1] DynamicARC is a registered brand of the IBA's Proton Arc therapy solution currently under research and development phase. It will be available for sale when regulatory clearance is received.