Ion Beam Applications SA

Hello everyone and welcome to the presentation of IBS results for the first half of 2025. I am Thomas Pernage, Head of Investor Relations. As usual, you will find this presentation on the Investor Relations page of our website. A question and answer session will follow the formal presentation. Moving to the next page, let me draw your attention to the company's disclaimer for forward-looking statements, which, as you know, are based on our current assumptions and beliefs and subject to risks and uncertainties. Today's speakers are Olivier Legrand, our Chief Executive Officer and IBA Clinical Lead, Henri Deromere, our Deputy Chief Executive Officer and IBA Technologies Lead, and we are pleased to welcome Catherine Vandenborg, our newly appointed Chief Financial Officer and IBA Corporate Lead. As you know, Catherine joined us on the 1st of July. Here is now the agenda for today's presentation. We start with our highlights for the periods, followed by a business review where we will discuss the strategic progress and the financials of each business unit. And finally, we'll cover financial performance in more detail and give you an update on our guidance and output.

Thank you very much, Thomas. Good afternoon, everybody. We are happy to share our achievement with all of you today. We are proud to announce a strong first half of the year, underpinned by accelerated conversion of the project backlog, improved profitability and sustained strategic momentum across our four business units. Our revenue reached €304.9 million, reflecting a steep increase of 40% compared to H1 2024. This growth was driven by the accelerated backlog conversion in both IBA clinical and IBA technologies. Our gross profit reached €90 million, corresponding to a gross margin of 29.5%, in each one last year. This was due to a less favorable equipment profitability mix driven by legacy low margin projects in proton therapy and some customer delays. Despite this, we achieved a significant increase at the Rebit level at 10.6 million Rebit benefited from both strong sales and disciplined OPEX, which was 26% of net sales, well below our long-term target of 30%. More specifically, we are pleased that IBA Clinical achieved a break-even rebate, driven by the scale-up of phototherapy activities and the financial turnaround of dosimetry. Bottom line, we recorded a net loss of 2.6 million for the first half of the year, given some negative impacts below Revit, which Catherine will further detail during the financial review. Our strong backlog conversion led to temporary additional working capital requirements driven by contract assets, resulting in a net debt position of 30 million euros. Despite this peak, which is expected to normalize with the deliveries of our large Spanish and Chinese orders in proton therapy, our net leverage ratio remains healthy at 0.63. In view of this consideration, we reaffirm our guidance for the year 2025, meaning a minimum of 25 million euro rebate, underpinned by positive rebate for proton therapy. Let's now have a look at our business highlights. Our backlog decreased to €1.3 billion, down from an all-time high of €1.5 billion, in view of the accelerated backlog conversion exceeding our order intake for the period. Our €107 million order intake is an encouraging start of the year, with IBA Technologies maintaining the same number of systems sold as H1 last year, but larger configurations, proton therapy recorded one sale in Taiwan in H1. That said, we also announced post-period the signature of a contract for Proteus-1 with the prestigious University of Heidelberg in Germany, This investment represents a significant expansion of their particle therapy program, active since 2010, and will ensure continued access to cutting-edge, highly targeted cancer treatment for patients. And finally, today, we announced the signature of two additional Proteus 1. This contract reinforces IBA's position as a trusted partner for leading institutions and confirms the growing global demand for proton therapies. With this post-period contract in proton therapy, dosimetry and technologies, our order intake is now close to 190 million euros. Overall, our market continues to display dynamic conditions, despite the more challenging geopolitical environment. We will further comment on this development. Let's move now to the review of our business performance, starting with IBA Clinicals. During our capital market day, we outlined our strategic focus on three axes, as you remember, related to one, strengthening of our technological leadership. Number two, to grow in our key markets, including Asia and the US. And finally, the expansion of our activities along the value chain. Let me share a few highlights of our progress in this area. In proton therapy, we have made several notable achievements. We launched the Proton Therapy Academy, a unique platform for knowledge sharing and training that brings together the world's leading experts and practitioners in the field. This platform is intended to support the awareness and clinical adoption of proton therapy, thanks to our community of domain experts. Besides, we reached a significant milestone in the development of our dynamic app technology, completing full treatment on Phantome with our prototype at the Coral Health site. We are therefore on track for FDA submission before product release in 2027. And also, we continue to progress on our service profitability initiatives, which, as you know, are key drivers of IVF proton therapy current and future profitability. In a different domain, our partner for carbon therapy, Normandie Hadron Therapy, is moving in the development of its first system. Catherine will revert on this in the corporate business review. We also achieve notable milestones in dosimetry. with the launch of Quasar phantom solution of magnetic resonance simulations in radiotherapy, as well as the diversification of our imaging portfolio through the acquisition of RadCal in the U.S. and a partnership with the startup company Phantom X in Germany. As expected, backlog conversion accelerated in the first act. The total backlog stood at 1.1 billion at the end of June, down 10% versus full year 24, inflicting strong execution alongside a H2 weighted order intake of 5. The service backlog is 634 million euros, slightly lower than prior years, mainly because of contract structure shifts and timing of renewals. However, it remains supported by 57 active operation and maintenance contracts and a growing install base that will continue to underpin long-term revenue visibility. Post-closing, the addition of Heidelberg and two other Proteus 1 orders brought 68 million of order intake, further strengthening IBA's market position. As you know, the expansion of our install base is a key driver of our strategic and financial plan. Our global footprint now consists of 46 operational sites, fairly evenly distributed across America, EMEA and APAC regions. As compared to the end of last year, two systems started treating patients in Asia, in China in particular, one in Shenzhen and one in Chengdu. In addition, we currently have an all-time high number of nine systems under installation and a further 29 projects in production across all three regions. This project represents the next wave of growth for IBA, supporting both near-term revenue visibility and the continued expansion of our global reach in providing proton therapy access to all patients that could benefit from it. We maintain our market leadership in proton therapy with one system sold over the first half and three additional post-closing of the period. As a result, IBA has by far the largest install base in the market with close to half the rooms in operation. This provides us not only with operational leverage, but also with the most robust platform to promote proton therapy together with our clinical partners. Prototherapy equipment sales more than doubled, significantly driving our top line. This remarkable growth resulted from the strong acceleration of our backlog conversion with large-scale procurement activities in Spain, China, and the U.S., and nine installations ongoing. This year, our supply chain is delivering a record number of 12 systems for prototherapy, a unique performance in the industry. Our service revenue grew by 4%, supported by our expanding install base and strong performance in system of time. Services contributed to 40% of the ProtonTherapy top line. As a result, Revit improved by 3.6 million euros during the period. This brings us closer to our target of achieving breakeven Revit level in ProtonTherapy by the end of 2025. That said, profitability continues to be impacted by the delivery of legacy lower-margin projects in Spain and China, as well as by few significant customer-related delays that have resulted in notable cost overruns. The weight of this project on our overall project portfolio is nonetheless fading over time. Dosimetry delivered a solid performance in the period. Top line grew by 9%, driven by strong backlog conversion, particularly in proton therapy, quality assurance, and conventional radiation therapy. Profitability is also improved, with the gross margin increasing by 2.3%, points to 46%. and structural efficiency gains. These have been driven by increased volume at the Shanghai factory, as well as the successful relocation of Moduc production in Germany. Revit more than doubled to €200 million, putting the business back on track. Competitive intensity is increasing, especially in the US, and tariffs are expected to weigh more heavily on the US and Chinese activities. Importantly, dosimetry remains unaffected by the recent procurement restrictions for medical devices between Europe and China. I hand over now to my co-CEO Henri to comment on the performance of IBA technologies.

Thank you, Olivier. Let's first have a look at the strategic progress of the industrial and radiopharma business units. On the industrial solution side, I would like to highlight a few key achievements for the first period. Firstly, in terms of expanding in our technology, I would mention the good market dynamics in EV X-ray sterilization, as illustrated by our contract with the major US sterilization player, Steritech. Another important development, in line with our ambition to expand along the value chain, importantly risking milestones for the development of an industrial scale solution for PFAS decontamination. More concretely, we have run multiple tests with different samples of PFAS loaded water and carbon filters in order to optimize irradiation conditions and maximize throughput. Leveraging on these additional results, our next step is to develop an industrial scale pilot unit partnering with industrial and potentially public stakeholders, following our Capital Light approach to new ventures. Turning now to Radio Pharma Solutions, I would like to highlight our commercial momentum in both emerging and mature markets and applications. For instance, we have sold a high-energy cyclone, IGON, to a customer in Taiwan and four cyclone tubes systems in the US as part of a single order to a CDMO company. The IBA cyclone tube indeed provides unique value to a customer with approximately a doubling of production output versus our nearest competitor. Additionally, we launched CASI, a new compact synthesizer platform to produce radio metals, which reinforces our offering in the fast-growing radiochemistry segment, in line with our strategic focus. In the field of teranostics, we are making solid progress with the development of a dedicated alpha cyclotron for the production of Astatine 211, the next generation of highly anticipated theranostics after Leucasium-477 and Actinium-225. IBA technologies equipment backlog decreased over the half of the year, given the strong conversion and the H2 waving of order intake in industrial solutions. As you know, we do not report any service backlog data for technologies, as these are mostly related to short-term one-year maintenance contracts with no permanent presence of an IBA team on site. Looking now at the financial results, I'm pleased to share the excellent performance of IPA technologies in the first half of 2025. Net sales grew by 30% year-on-year to $115 million, driven by both a faster conversion of our equipment backlog and increasing services sales from our growing install base. As a result, rebates almost doubled versus last year, reaching 13.1 million, supported by a favorable product mix as well as disciplined cost management. As pointed out by Olivier in his introduction, technologies posted a sound level of order intake with the sale of 14 accelerator systems at a higher average price than last year.