IBA reports strong profit growth in first half of 2013 despite lower revenues

Louvain-La-Neuve, Belgium, 29 August 2013 - IBA (Ion Beam Applications S.A., 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 2013.

                    REBITDA: Recurring earnings before interest, taxes, depreciation and amortization
                           REBIT: Recurring earnings before interest and taxes
                           2012 numbers restated to reclassify Bioassays in "Discontinued operations"

Business Highlights

• Good growth in Accelerators (up 13.7% in H1), but low conversion rate of proton therapy (PT) order book due to customer production planning (PT sales down 14.4% in H1)
• Uncertainties in the US medical device market and USD to EUR FX rate led to a decline in Dosimetry revenues (-6.5%) despite good performance in the emerging markets
• Efficiency programmes generating strong growth in REBIT (up 30.8%).  IBA on track to reach 10% REBIT margin in 2014
• Strong interest in IBA's smaller and more affordable compact system, Proteus^®ONE*, with new contract signed in Taiwan
• Significant progress made in resolution of legacy issues and refocusing the business on proton therapy
  • Essen litigation close to final settlement
  • Term sheet signed for sale of Bioassays business
  • SK Capital disputed claims reduced and, to the extent estimated necessary by the management, provisioned
• International PT market bolstered by broader use of proton therapy in more cancer indications and Government support in key markets

Financial Highlights

• Revenues of EUR 97.4 million, down 8.2% compared to first half 2012, due to low conversion of backlog and decline in revenues for Dosimetry in the US
• Operating margins rise to 8.5% from 6.0% in 2012 (restated) despite lower revenues
• Reported net profit of EUR 4.1 million (H1 2012: loss of EUR 1.4 million)
• Net debt (including Bioassays) of EUR 58.0 million, due to reduce in the second half post EUR 31.2 million Trento debt repayment, expected by end of October 2013
• Sales guidance revised to a mid-single digit decrease in 2013 versus the mid-single digit growth guidance given in March

Olivier Legrain, Chief Executive of IBA, commented: "The productivity improvements made to the business over the past year have allowed us to improve operating profitability during the first half of 2013. Although revenues were weaker, largely due to customer production planning, the order book remains strong and we are encouraged by the level of interest in Proteus^®ONE as well as the increasing levels of international governmental support for investment in PT.  We have also made further good progress in resolving the legacy issues during the first half." 

"Our PT prospects list is very significant and selling eight rooms in 2013 is still within reach but  we have been observing slower PT contract closing processes mainly due to the constraining financing environment.  We anticipate a good order intake for accelerators during the second half, particularly from emerging countries.  With further benefits from the cost reduction program to come during the second half of the year, we remain on track to reach our 10% REBIT margin guidance in 2014."

Conference Call Information:
IBA will host a conference call and webcast today at 2pm CET / 1pm BST / 8am EDT. Olivier Legrain, Chief Executive Officer, and Jean-Marc Bothy, Chief Financial Officer, will host the call which will be conducted in English.  The conference call will be webcast live and may be accessed on the investor page of the IBA website at: www.group.iba-worldwide.com/investor-relations. If you would like to participate in the Q&A, please dial (PIN code 509290#):

Belgium: +32 2 404 03 05
UK: +44 207 750 9926
NL:  +31 207 133 488
LU: +352 278 601 66
US: +1 914 885 0779
FR: +33 172 040 033

Shortly after the call, a replay of the webcast and the webcast presentation will be available on the Company's website.

Financial calendar
Third Quarter business update                                                                                             November 13, 2013 (changed from Nov. 14)
Full Year results 2013                                                                                                                      March 28, 2014

About IBA
IBA (Ion Beam Applications S.A.) is a cancer diagnostics and treatment equipment company and the worldwide technology leader in the field of proton therapy.

The Company's primary expertise lies in the development of next generation proton therapy technologies, providing oncology care providers with premium quality services and equipment.  IBA's proton therapy solutions are scalable and adaptable, offering universal full scale proton therapy centers as well as next generation compact, single room systems.  IBA also focuses on the development and supply of dosimetry solutions for Quality Assurance as well as particle accelerators for medical and industrial applications.

IBA employs more than 1,200 people worldwide and is listed on Euronext Brussels, (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB), more information can be found at: www.iba-worldwide.com

* Proteus^®ONE is the brand name of a new configuration of the Proteus^® 235, including some new developments subject to review by Competent Authorities (FDA, European Notified Bodies, et al.) before marketing.