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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.

Yes, good afternoon everyone and thanks for the update and allowing us to ask questions. Maybe first on the refinancing, I didn't hear it, so can you come back on the covenant? And maybe give us details about the cost of the financing. And can you confirm that you're actually not planning to use, so in your budget, to use to draw the FCM as in slide 7? That's my first question, and then I have two more. But maybe we can start with this one.

Okay, good. Thank you, David. So first part of the question is related to the covenants. So basically, and it is currently the case today, we have two covenants, two financial covenants. First one is a net leverage ratio, so comparing the net debt excluding subordinated debts and the last 12 months' REBDA, so it's calculated on a rolling basis. And we have to comply with a level of maximum three times. The second governance is a minimum level of corrected equity. And why is it corrected? It's because it's including the subordinated gaps as banks consider its equity for that purpose. So I assume it's basically on the cost. Then, of course, as you can imagine, it's the exact level of margin is the confidential elements. from a bank perspective as well. And so we can only comment that we stay with a similar level of interest rate and margin, basically, as the current credit lines. So if you look at the average use of those credit facilities over the last period of time versus the interest charges on our P&L, you will have an idea of what you can expect for the future. The last question relates to the use of the revolving credit facilities more specifically. So, currently, we've drawn $20 million out of the available $60 million. We've commented on the expected treasury trajectory with improvements in the year and very improving over the next year. Mark Stoller has tied to the delivery of our large botanical therapy projects in China and Spain. use should reduce over time uh i also commented on infra group cash allocation uh that may require from time to time use of this credit line so this should not come uh as a surprise if you maintain some use uh early click but the idea that these are used as shorter term uh type of uh of buffer okay thanks thanks very much and my second question you anticipated a bit

It's on the Ortega contract deliveries for this year and for next year. Maybe you can also comment on the Chinese contract. What is reasonable to expect and maybe to give us a range, not necessarily precise, but a rough indication of how many projects you expect, basically for which you expect payment actually this year and then next year?

Yeah, I think on this one we remain quite aligned with what we already mentioned at the moment of the publication of Q2 results. So, to summarize, we have currently manufactured three machines out of the ten that have been ordered. One has been shipped. That's something that we already mentioned in Q2 results that we intend it to ship in October. It has been done by the end of October, beginning of November, and so we expect to receive the payment of this machine in December, conform to the terms we had in the contract. The second and the third machines will be shipped next year in the course, normally, of Q2 for one, end of Q2, beginning of Q3 for the third one. And in terms of payments related to all these machines, you may remember that we mentioned that the working capital impact linked to the delay was close to 30 million. It is approximately one-third, one-third, one-third by machine, let's say.

Do you mean that about the seven, you're talking about the remaining seven?

No, that was on the first three that we already manufactured. On the remaining seven, we will change a little bit the way we manufacture them. And so instead of starting to manufacture... as soon as we can to be ready to ship from the moment that the customer is ready with the building of the hospitals. We will wait before doing the manufacturing. We will wait to have strong signals that the building will be ready So there might still be some kind of delay at a certain point of the time, and we want to remain a little bit flexible in the interest, of course, of the patient. But the general principle is that we will not start building the machine as long as we don't have very strong signals that the hospital can accommodate the equipment to avoid this strong working capital impact that we had on the first three machines.

Is it fair to say then that the remaining seven will be for beyond 2026?

So it will be spread over the entire term of the contract, but indeed it is fair to say that the shipment of the remaining seven will be after 2026, yes.

Thank you. And last question from my side is on the PT, the proton therapy services. But the question of how you've been monitoring, I would say, more the credit risk aspect of your customer. My question is also a bit related to the recent controversy in the Netherlands that some centers would be underutilized and one was facing more acute financial difficulties. If you can comment on this, it's a bit two different topics, but I think they're related.

Yeah, so maybe on the credit risk linked to the customer, that's of course something that we monitor at the moment that the contracts are closed, where we do a number of analyses on the solvability of the customers, the ability to pay for the equipment on the one hand, and then later for the services. that the hospital intends to provide. Of course, during the course of the year, and depending on the evolution of the revenues of the hospital, we might see some volatility compared to the first rate assessments that we did. Then we managed, together with the customer, in a relatively proactive way, and we try always to find solutions that could benefit all the parties, so in the best interest of all the stakeholders. So that's on the credit let's say question. On the fact that some hospitals don't necessarily, let's say, fully book the availability of the rooms in which the equipment are installed, so it's true that sometimes it can take a little bit more time, so it's a little bit longer for a hospital to book the room, but of course it's in the best interest of everyone to try to maximize the use of the room. And so that's something in which we can possibly advise hospitals what they can do, how long it takes to treat one patient, or it can, let's say, or the installation can use at its maximum capacity. But at the end, of course, it's something that hospitals have to implement. I think in some cases we see hospitals not having a full use the capacity. In other case, we see a hospital having a very high use. I think that the maximum which has been reached until now is 64 patients being treated over one day. So you see it's very much depending on one hospital to another.

Any comment on the Netherlands or you prefer not to?

And what is, you mean on the study which was published on the proton therapy?

Not the study, but that one center was, I'm just quoting the article, so I don't know if it's correct, but that one center was particularly in a difficult financial situation.

I must admit that I didn't see the article, honestly, so I can't comment because it's a specific question, but I would be happy if you can send to the team the link to the article and we will come back to you with any specific comments to be provided. No problem. Thank you.

Thank you.

So, David, thank you for your questions. We have further questions from Laura, if you want to unmute Laura.

Yes, good afternoon, everyone. Thank you for taking my questions. I have three. So, first of all, could you comment on backlog conversion for H2? Because it was very strong in H1, so I was wondering how did it look like then in Q3, and what can we expect for the remainder of the year? Then you mentioned in dosimetry that you were facing some headwinds. I was wondering to what extent this would impact the four-year performance of that division. And then the last one on CGN, do you have any update from them? Do you expect any until the end of the year? That's it. Thank you.

Okay. Thank you, Laura. So, I will address the first question, and then Catherine and Henri will address the other two. So, the first question relates to backlog conversion over H2. Indeed, with a very active H1, and we are creating the base in H2, definitely insofar as it will be visible in the numbers. This being said, it will be less imbalanced as last year in terms of H1 versus H2 weighting. So, yeah, we're definitely on the right trajectory to reach ultimately the targets that we have reconfirmed as part of our press release today.

Okay.

Okay, if you don't have any further questions on the backlog, I will continue on those. So like I was indeed mentioning, we face some kind of win-win, and that's mainly due to, let's say, competition that we see coming with some products that we don't have yet. So in order to come back to competition, The level that we internally anticipated, we might have to do limited acquisitions. That's the reason why we started with one, Fantomix, but we might have to do a few and very limited others. On your question whether we expect an impact, I understood from the guidance that we have provided, the answer is clearly no. So it's, let's say, headwinds compared to internal targets that we had. But all in all, and having in mind all the segments in which we operate and all the activities we have, we don't expect any impact on the guidance that we communicated to the markets.

Very clear.

Would you specify your question on CGL? I'm not sure. I see an immediate answer, so it would be great if you could spell it out again.

Yeah, I was just wondering if you had any update from them, any contracts, if you see any activity from their side.

Nothing outstanding, Loha. I think there are a few public tenders for the moment in the Chinese market, where we are active, they are active, but there is nothing meaningful to mention at this stage. So, yeah, nothing really different compared to what we have said so far.

Lastly, we confirmed that they are as part of the partnership agreement, so they have basically executes the technology transfer parts and they have the facility, the factory for local manufacturing that is ready to go. No, the main focus is really on the market developments and getting the sales converted.

Okay, very clear. Thank you.

At this stage, we don't see any further open questions, so we have, I would say, last chance slots, if anyone is willing to share a question. In the meantime, we can already tell you, so the presentation will be available on our website, the same link, shortly after this call.

So I think if there are no more questions, we would like to thank you again for your attendance to this call. It was a pleasure for us to have the opportunity to answer your questions. And we wish you a good evening slash afternoon slash end of morning. Have a good day. That might be simpler. Thank you very much.