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2018-08-23 07:00 CEST
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IBA SA : IBA Reports Half Year Results for 2018

IBA Reports Half Year Results for 2018

  • Group revenue of EUR 115 million, with revenues weighted to H2
  • Five Proteus®ONE solutions sold in the period, of which three contracts are awaiting financing and one is a term sheet with down payment
  • Proton Therapy and Other Accelerators backlog remains strong at almost EUR 1 billion in equipment and services
  • Final agreement signed with Elekta for software and co-marketing
  • Strong improvement of REBIT from H2 2017 and FY 2017
  • On track to positive REBIT and net profit after tax for FY 2018

To read the full 2018 half year results press release with the operating review, please open the pdf document on teh following link

Louvain-La-Neuve, Belgium, August 23, 2018 - 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 2018.

  H1 2018
(EUR 000)
H1 2017
(EUR 000)
Variance
(EUR 000)
Variance
%
Sales & services 114 675 151 613 -36 938 -24.4%
REBITDA -706 5 264 -5 970 -113.4%
  % of sales -0.6% 3.5%    
REBIT -4 533 1 901 -6 434 -338.6%
  % of sales -4% 1.3%    
Net result -7 015 -4 655 -2 360 N/A
  % of sales -6.1% -3.1%    

Olivier Legrain, Chief Executive Officer of IBA SA commented: "IBA made good progress in the first six months of the year with five new proton therapy sales and a record 11 Other Accelerators sales. As expected, revenue recognition was slower over the first half, due to the phasing of backlog conversion and only one new Proton Therapy contract delivering revenues. Reacting to this environment, the Group maintained tight cost controls, making almost EUR 10 million of savings in the first half, whilst maintaining market dominance with all five proton therapy projects sold in the first six months of 2018 awarded to IBA. The Group continued to convert its almost EUR 1 billion backlog in Proton Therapy and Other Accelerators equipment and services with 20 projects on track.

"Looking to the second half of the year, IBA reiterates its outlook for 2018 of a positive REBIT and net profit after tax, driven by a second half weighting, which includes recently signed projects awaiting financing, a strong pipeline of near-term projects and five installations due to start in the second half. We remain confident in the long-term prospects for proton therapy and our focus remains to grow the market through clear evidence generation and improving affordability, whilst maintaining a superior, technologically advanced offering. Most notably, the recent collaboration with Elekta, now formally signed, will complement the Group's existing partnerships with Raysearch and Philips and see the Group enhancing its technological lead of the market in the important area of software as well as benefitting from co-marketing synergies."

Financial highlights

  • Total Group H1 revenues of EUR 114.7 million, down 24.4% (H1 2017: EUR 151.6 million), stemming from low revenue recognition on new contracts over the first half and phasing of backlog conversion
    • Proton Therapy and Other Accelerators revenue of EUR 90.4 million, down 26.7% (H1 2017: EUR 123.3 million)
    • Dosimetry revenue down 14.2% to EUR 24.3 million compared to an exceptional 2017 (H1 2017: EUR 28.4 million) with strong backlog conversion
  • Operating expenses down 16.2% to EUR 44.5 million, reflecting the measures taken to adapt the business to a slower market with continuing tight cost controls and efficiency measures across the cost base
  • Group REBIT of EUR -4.5 million, reflecting only one of five new orders starting to recognize revenue in the period, partially offset by four new service contracts starting over the period. Group REBIT was up 61% from EUR -11.6 million at the end of 2017 and up 67% from H2 2017 (H2 2017: EUR -13.5 million)
  • Just under EUR 1 billion equipment and service backlog comprising a period-end equipment backlog for Proton Therapy and Other Accelerators of EUR 297 million, up 5% from 2017, and a services backlog of EUR 682 million, down 1% from H1 2017
     
  • Gross cash of EUR 36.3 million and net cash position of EUR -39.1 million. Working capital requirements remain stable compared to 2017, reflecting increased invoicing of milestones while build-up of inventory slowed down on ongoing projects

Business highlights

  • Four Proteus®ONE* contracts signed in the period, (three in the UK and one in China) and one term sheet signed in Italy. This represents 100% of the global market share for proton therapy systems sold so far in 2018. Of these, only the contract in China was recognizing revenue as of June 30, 2018, as the others await financing or contract finalization over the second half of the year
  • IBA continues to provide the quickest installation time on the market, with all projects completed in under 12 months, as demonstrated by two projects in Japan, one in the Netherlands, one in France and a record nine month installation in Wales
  • All proton therapy projects on track with 20 under construction globally, comprising 12 Proteus®ONE and eight Proteus®PLUS solutions, of which five projects on schedule to start installation in H2 2018
     
  • Construction of the new factory is on track and when operational in early Q4 2018, will enable a reduction in lead time and cost
  • Memorandum of Understanding with Elekta formalized in a final agreement with commitment to collaborate on software development as well as the sales and marketing of each other's products
  • Other Accelerators has seen an exceptional year with the sale of 11 systems including a high-energy Cyclone 70, coupled with strong upgrade sales and a promising Service pipeline
  • As previously announced, IBA is reviewing strategic alternatives for IBA Dosimetry, including a sale, merger, initial public offering, or retention of the business, and plans to update the market by the end of the year

***ENDS***

A conference call to discuss the half year results will be held today at 3pm CEST / 2pm BST / 9am EDT / 6am PDT and can be accessed online at: http://arkadinemea-events.adobeconnect.com/iba2308/event/registration.html
If you would like to participate in the Q&A, please dial (PIN code 20839073#):

Belgium:                      +32 2 403 58 16
UK:                              +44 20 71 94 37 59
NL:                              +31 207 09 51 19
LU:                              +352 2 730 01 63
US:                              +1 64 67 22 49 16
FR:                              +33 1 72 72 74 03

The presentation will be available on IBA's investor relations website and on https://iba-worldwide.com/content/half-year-2018-results-web-conference-details-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.

Financial calendar
Third Quarter Business Update         November 15, 2018
Full Year Results 2018                      March 21, 2019

About IBA
IBA (Ion Beam Applications S.A.) is a global medical technology company focused on bringing integrated and innovative solutions for the diagnosis and treatment of cancer. The company is the worldwide technology leader in the field of proton therapy, considered to be the most advanced form of radiation therapy available today. IBA's proton therapy solutions are flexible and adaptable, allowing customers to choose from universal full-scale proton therapy centers as well as compact, single room solutions. In addition, IBA also has a radiation dosimetry business and develops particle accelerators for the medical world and industry. Headquartered in Belgium and employing about 1,500 people worldwide, IBA has installed systems across the world.

IBA is listed on the pan-European stock exchange NYSE 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


For further information, please contact:

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

Thomas Ralet
Vice-President Corporate Communication
+32 10 475 890
communication@iba-group.com

For media and investor enquiries:

Consilium Strategic Communications
Amber Fennell, Matthew Neal, Olivia Manser
+44 (0) 20 3709 5700
IBA@consilium-comms.com

HUG#2212387