IBA Reports Full Year 2021 Results

STRONG ORDER INTAKE AND RECORD BACKLOG WITH PROFITABILITY
ACROSS ALL BUSINESS LINES

SOLID BALANCE SHEET WITH EUR 130 MILLION NET CASH

ACTIVE PIPELINE ACROSS ALL BUSINESSES

Louvain-la-Neuve, Belgium, 24 March 2022 - IBA (Ion Beam Applications SA), the world leader in particle accelerator technology, today announces its consolidated results for the 2021 financial year.

(EUR 000)	YE 2021	YE 2020	Variance	Variance%
Total Net Sales	312 964	311 955	1 009	0.3%
Proton Therapy	169 923	189 150	-19 227	-10.2%
Other Accelerators	90 715	71 745	18 970	26.4%
Dosimetry	52 326	51 060	1 266	2.5%
REBITDA	24 582	55 985	-31 403	-56.1%
% of Sales	7.9%	17.9%
REBIT	14 510	40 406	-25 896	-64.1%
% of Sales	4.6%	13.0%
Profit Before Tax	8 255	33 054	-24 799	-75.0%
% of Sales	2.6%	10.6%
NET RESULT	3 879	31 921	-28 042	-87.8%
% of Sales	1.2%	10.2%

Olivier Legrain, Chief Executive Officer of IBA commented: “In a year where the challenges of the pandemic persisted for the world, I am extremely proud of what IBA has been able to achieve. We demonstrated considerable resilience across the group with profitability across our business lines. This performance has been achieved by capitalizing on our market leading offerings, which resulted in a high order intake across the board. Alongside this, our pipeline is incredibly strong with active international business leads in Proton Therapy and Other Accelerators as well as in Dosimetry. The resurgence in activity that we have seen in proton therapy has been particularly notable in the US and Asia and the momentum is providing significant visibility for the years ahead, further bolstered by the increasing, predictable revenue stream from Services.

“We have entered 2022 with an all-time high cash position. This provides us with stability and optionality through which to strengthen the business with a focus on recurring revenues, whilst also strategically investing in emerging growth areas such as FLASH therapy and theranostics, as well as seeking value-enhancing business development opportunities. Moreover, as we move towards long-term sustainable profitability, our stakeholder approach remains front and centre of all our business activities.

“Looking externally, the geopolitical situation in Europe remains complex. We are saddened by the tragic developments in Ukraine and stand by all the people who are affected. We do not see any major impact of the ongoing conflict on our business at this stage, however given rising inflation, global supply chain disruptions and increasing costs of doing business, this may change and we continue to monitor the situation closely.”

Financial summary

• Total 2021 Group revenues of EUR 313 million, broadly flat versus last year driven by increased activity and backlog conversion, offset by the significantly higher contribution of CGNNT related revenue in 2020
  • Excluding CGNNT the YoY revenue growth would have been 24%, demonstrating the strong uptick in backlog conversion, coming mostly from the Proton Therapy business
• Gross margin was 34.4%, a return to recurring levels vs the gross margin of 43.6% in 2020 that had been strongly affected by the CGNNT deal
• Strong order intake of EUR 228 million for Proton Therapy and Other Accelerators equipment and upgrades. Revenues were flat due to a combination of improving activity and backlog conversion in 2021, offset by CGNNT related revenue in 2020
• Excluding CGNNT impacts, Proton Therapy equipment revenues increased from EUR 35.1 million to EUR 69.2 million, the strong backlog conversion coming from construction progress, but also ongoing installation of five solutions
• Other Accelerators equipment revenue increased by 35% to EUR 67.1 million, reflecting the record order intake and continuing backlog conversion
• Resilient performance for Dosimetry with order intake of EUR 50 million, slightly down by 4%, but with revenue up 2.5% to EUR 52.3 million
• Continued strong performance of Services with revenue increasing 6% versus last year. Services now make up 46% of the PT and Other Accelerator revenue line
• Equipment and upgrade backlog reached an all-time high of EUR 449 million and with record overall equipment and services backlog of EUR 1.2 billion
• Positive 2021 REBIT of EUR 14.5 million (2020: EUR 40.4 million) reflecting continued strong recovery and cost control measures with last year’s figure strongly benefiting from the CGNNT deal
• Total Group net profit of EUR 3.9 million (2020: EUR 31.9 million)
• Strong balance sheet with EUR 130 million net cash position, doubling from EUR 65 million at the end of last year  
• EUR 37 million undrawn short-term credit lines still available and bank covenants fully complied with
• Share buyback program launched in January 2021 for a total of 357,000 shares, at end June 2021 for a total of 250,000 shares and in early December 2021 for a total of 400,000 shares. At December 31, 2021, a total of 704 549 shares had been repurchased over the year
• The Board of Directors will recommend to the annual general assembly the distribution of a dividend of EUR 0.19 per share, with a dividend matching policy applied to employee bonus pay, in line with the Company’s stakeholder approach

Business summary

• Received B Corporation (“B Corp”) certification in H1, underlining IBA’s enduring commitment to its stakeholder approach
• Continued revival in Proton Therapy activity with five solutions (nine rooms) sold
  • Five-room Proteus^®PLUS¹ contract agreed in China
  • Four Proteus^®ONE¹ contracts agreed (three in US and one in Italy)
• Record order intake for Other Accelerators with 31 systems sold, of which 17 were signed in the second half, compared to 17 systems sold last year, highlighting the growing radiopharmaceutical industry and the strong industry move towards E-Beam and X-ray technologies in medical sterilization
• Resilient performance of Dosimetry with order intake largely in line with 2020
• Cost control measures still in place, partially offsetting continuing, albeit diminishing COVID-19 related impact, whilst allowing for strategic investment in R&D
• Strategic R&D partnership announced with SCK CEN to enable the production of Actinium-225 (Ac-225), a novel therapeutic radioisotope, with significant potential in cancer treatment
• Launch of new high energy and high-capacity cyclotron, the Cyclone^® IKON, which offers the largest energy spectrum for PET and SPECT isotopes
• Creation of the global DynamicARC^®2 Consortium with the objective of preparing for the clinical roll out of the treatment modality through the Proteus^® platform
• Key Proton Therapy updates announced at ASTRO in October 2021, including expansion of strategic partnership with RaySearch within FLASH and Proton Arc therapy projects, multi-year research agreement with the University of Pennsylvania to advance research in ConformalFLASH^®3  
• Launch of “ProtectTrial”, a large-scale, multi-institutional, randomized controlled clinical trial in conjunction with 19 industry and academic partners, in August 2021
• Launch of Campus, the world’s first online proton therapy platform

Post-period highlights

• In January, IBA announced the receipt of a down payment for an irradiation cross-linking solution using IBA’s Rhodotron^® technology
• In January, IBA announced the launch of a new low energy compact cyclotron, the Cyclone^® KEY
• In February, a contract was signed for a Proteus^®ONE proton therapy solution
• In March, IBA completed its share buyback program launched in December 2021. In total, 1,007,000 shares were bought back under the three programs
• In March, IBA and Tractebel announced a partnership agreement to support IBA’s customers with their proton therapy design and construction projects

***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 full year results, followed by a Q&A session.

This conference call will be held today, Thursday, 24 March 2022, at 3pm CET / 2pm GMT / 10am EDT / 7am PDT 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:                     +32 2 890 97 20
UK:                             +44 20 3321 5200
NL:                              +31 20 708 6901
LU:                              +352 27 87 00 02
US:                             +1 347-991-7591
FR:                              +33 1 70 99 53 51

The presentation will be available on IBA’s investor relations website and on:
https://www.iba-worldwide.com/content/iba-full-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
Business Update Q1 2022                                        19 May 2022
Half year Results                                                       31 August 2022
Business Update Q3 2022                                        17 November 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 1,600 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

For further information, please contact:

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

Olivier Lechien
Corporate Communication Director
+32 10 475 890
communication@iba-group.com

For media and investor enquiries:
Consilium Strategic Communications
Amber Fennell, Angela Gray, Lucy Featherstone
+44 (0) 20 3709 5700
IBA@consilium-comms.com

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¹ Proteus^®PLUS and Proteus^®ONE are brand names of Proteus 235

² DynamicARC® is a registered brand of the IBA’s Proton Arc therapy solution currently under development phase.

³ ConformalFLAsH® is a registered brand of IBA’s Proton FLASH irradiation solution currently under research and development phase.

Attachment

• 220324-IBA-FY21-results-EN-c