Ion Beam Applications SA

Hello, and good afternoon, good morning. Welcome to our conference call for the third quarter training updates. We are pleased to welcome you and take this opportunity to have a dialogue with you. So we have prepared a short presentation, considering it's just a third quarter update, another full-fledged update that we provide in full year and a half here, results, and basically we'll cover the presentation together with Catherine and Henri and we propose that then you can raise your hands after the presentation is finished and we'll give you the floor and we'll unmute you so that you can ask your question and you can basically follow on the dialogue so you'll see our usual disclaimer On these slides, today's speaker, so Catherine Van Den Boor, Chief Financial Officer of IBA, Henri de Vendree, our co-CEO in charge of IBA Technologies, is also joining us and happy to take questions, and myself, Thomas Pervenage, taking care of investor relations. So we start with highlights, key highlights on the business side, and then, and there's a specific topic for this training update, we'll cover the corporate refinancing that you could discover as part of our press release earlier today. So I will now leave the floor to Catherine. for the first section.

Yeah, good afternoon, good morning everyone and thank you very much for attending this Trading Update call. Like Thomas mentioned, we hold this call today basically to provide you with a qualitative Trading Update. We will again confirm the trends in our operational activities and show that they remain fully aligned with your guidance. We will briefly discuss the trends we see in the markets, and we will present our new financial structure before, of course, answering any questions you may have. So, first element that I would like to stress is that IVA remains fully confident and highly confident to meet this year guidance, being rebits at least 25 million, and that's supported by well under control effects, which remain below our long-term targets of maximum 30% of sales, and an already positive remit contribution from proton therapy, This is for us a very important milestone resulting from the scale-up of proton therapy activities and favorable progress. Of course, it underpins all commitments in the profitability improvement trajectory that we set ourselves at the beginning of the year. In terms of equipment on the VTEC, NIRVA amounts to 195 million. It's an increase of 11 million versus Q3 2024. Thanks to a strong contribution from IBA Technologies, which increased by 22%, and more specifically, Radio Pharma Solutions. To give a little bit more of flavor and details, FPS has an excellent commercial momentum in high energy cyclone items and cyclone cube systems in both emerging and more major markets and applications. In India, we have a quite active pipeline in China. In PT, we have sold four Proteus One at the end of Q3, sorry, 2025. If you remember last year, same period, we had sold three Proteus One. And the sales includes two Proteus One orders from our existing customer, Apollo, in India, which is expanding beyond its already operation multi-room facility in Chennai. In Dozie, we see a decreasing level of activity versus last year. We face some headwinds in the US and the Chinese markets. So, in conclusion, on the order intake, I would say that it's a very encouraging one, confirming the added value of all solutions to all customers and the positioning of the IBA group portfolio of activities. Of course, 25 is not ended yet, and we will keep you informed on the order intake progresses that we will realize in the next weeks. In terms of backlog of equipment and services, it is maintained at 1.3 billion, slight decrease of 0.1 billion. Versus Q3 2024, let's say it's more or less stable after the strong accelerated backlog conversion that we have observed in the first half of 2025, and that is due to the higher order intake in Q3. Finally, our net financial position amounts to 60 million as working capital has continued to be impacted by the customer delays in delivery of large proton therapy projects in Spain and China. That being said, we see this amount as a peak and our net financial position is expected to gradually improve as from December 25 while we have secured a solid refinancing package on which we will come back in a few minutes. To give you some view on the progress that we have made across the different business segments, first on the clinical side, PT more specifically, we signed a memorandum of understanding with Varian at ASTRO. And this memorandum aims to strengthen interoperability enhanced clinical workflow and we went also to co-develop some technologies together, including technologies in connection to a roadmap on dynamic arc and flash therapy. We see also a very good momentum for proton therapy supported by the growing clinical evidences. In particular, we have seen an exciting first-ever Level 1 clinical evidence provided by MD Anderson that demonstrates proton therapies benefit in head and neck cancer versus conventional radiation therapy, offering same tumor control with reduced side effects and, most importantly, improved survival rates. We see also strong commercial traction in APAC, which is reflected in our order intake, and the pipeline in the U.S. remains quite active as well. Regarding NHR or partnership in carbon therapy, the installation works of the first system are progressing and the financing efforts are ongoing in parallel to cover related costs. Going to dosimetry, like I said, we face some regional specific challenges in the U.S. due to local constituents. We have also some headwinds in China. We have closed the acquisition of the Berlin-based Fantomix company at the end of October 25. As you may have seen in our press release, Fantomix is a commercial stage company recognized for its advanced anthropomorphic phantoms, which are used in quality assurance for AI solutions in medical imaging. Now, going to IBA technology side, in the industrial segments, we see a continuing regulatory pressure on ETO sterilization, supporting the long-term shift towards E-beams and X-ray technology. We see also sustained progress on new applications, like polymers, like PFAS, with IBA's increased presence at specialized conferences and workgroups. On radiopharma solutions, there are strong commercials and good commercial traction, which is reflected in sales, both in emerging and larger markets. We see very exciting times in terranostics, with increasing industry interest in nuclear medicine, and especially from major pharma companies with particular focus on alpha emitters, such as Actinium-225 and Astaxanine-211. Now, I propose to discuss the financing package that we concluded, and it's rational. Maybe first, as a reminder, we had undertaken a review of our financial structure, considering three elements. First, the past and expected evolution of the business. Second, the expected evolution of working capital. And three, possible investment opportunities. This review resulted in the closing of a refinancing package, including a 125 million bank club deal with different branches and a 10 million subordinated loan from Wallonie Interbrands. The refinancing addresses three objectives. The first one is the consolidation of IBS balance sheets, acknowledging that past investments in long-term assets like Pantera, like NHS, like MIQ, that those investments have been funded by operating cash flows and not long-term financing. Second, we want to increase our resilience in a volatile context. And third, we want to build firepower to capture possible inorganic growth opportunities. Of course, opportunities meeting our investment criteria and especially being related to IBA markets and being accretive. Out of the 135 million financing package, 60 million has been drawn so far. Thomas will know further details, the current and intended use of funds, as well as the key terms and conditions of the facilities.

Thank you, Catherine. So, you will see on the slides how intense allocation of the use of these credit facilities. So, on the right-hand side, you find the different tranches of funding. On the left-hand side, potential uses for these. First of all, starting at the top, You will see the 10 million subordinated loan and basically 30 million drawn under the 50 million five-year term loan immediately reinforcing the long-term funding components of the balance sheet, which is the first item highlighted by Catherine in our financing strategy. Then we have an unused portion under this five-term loan amounting to 20 million, which is available to cover more structural working capital over the medium term. Let's think, for instance, of our Spanish potentarity projects, as well as to fund investments opportunities. While the latter would also benefit from specifically dedicated M&A term loan, that's the 15 million tranche you see on the right-hand side. Then, at the bottom, we have 60 million of revolving credit facilities aiming to address short-term working capital fluctuations. Note that they can also play a useful role considering that some geographies in which we operate do not allow straightforward cash management solutions, namely India and China, for instance. And this, from time to time, can create imbalances between group entities having excess cash, while IBA SA in Belgium, where manufacturing, R&D, and HQ activities take place, may have some needs. And so those revolving credit facilities can accommodate for those intergroup cash management opportunities or challenges as well. So you see on this slide, basically, again, an overview of the different tranches of funding and the amounts already drawn versus what remains available. So 61 million drawn so far, leaving 74 million available. Time-wise, we have six months to consider during additional tranches under the 50 million term loan, and still 24 months under the acquisition term loan facility. We will regularly review the use of these credit lines going forward in function of the evolution of working capital, temporary and structural, and as well business opportunities. Now a few words on the terms and conditions. Bank facilities are based on the floating rate, so typically Uebor, plus some margin, and said margin is in line with our previous credit lines. Financial covenants also follow previous standards and consist in a maximum net leverage ratio and a minimum level of corrected equity. Corrected because equity then in this case includes subordinated loans. The net leverage is calculated on the net debt excluding subordinated debts and the last 12 months rebidier. The net leverage covenant provides for a maximum of three times. Besides, as customary within the Club Deal Documentation Framework, IV has to comply with certain undertakings related, amongst others, to M&A, disposal assets, or others. Now, moving to the conclusion, we have in place a financing structure that is secured with a five-year commitment from the financing partners. As Katrina said, the idea was definitely to have a package addressing an adequate mix of long-term versus short-term on the liability sides and funding versus the asset sides. flexible, to be able to address working capital volatility, and as well to be able to flexibly, in an agile way, to capture investment opportunities, and as well robust, given the support of strong financing partners that you see listed on the right-hand side of the slide, so a pool of four banks, and as well, our long-standing financing partner. So we see the opportunity to thank all of them for their trust and commitment to IBA success. We are now ready to take your questions. So please, again, raise your hands and unmute yourself. So first question is from David. Please go ahead.