Ion Beam Applications Sa · EURONEXT:IBAB
Ion Beam Applications Sa — IBA — FY2018 Earnings Presentation
45 slides from Ion Beam Applications Sa's earnings presentation, Mar 21, 2019
Slide 1: 2018 Full Year Results
2018 Full Year Results 21 March 2019 Olivier Legrain (CEO) and Soumya Chandramouli (CFO) © 2017 IBA SA
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements concerning industry outlook, including growth drivers; the company’s future orders, revenues, backlog, or earnings growth; future financial results; market acceptance of or transition to new products or technology and any statements
Slide 3: Content
Content Strategy Financial figures Proton therapy market evolution Proton therapy future Other accelerators update Dosimetry update Outlook 3
Slide 4: 2018 overview
2018 overview Despite the challenging proton therapy market – IBA returned to profitability in the second half of the year – IBA achieved a positive REBIT for the full year Strong improvement largely driven by: – Reduction in operating expenses – Record order intake in Other Accelerators – Excel
Slide 5: Viggo, treated with proton therapy
Viggo, treated with proton therapy 5
Slide 6: Long term strategy for growth
Long term strategy for growth Grow the PT market Grow IBA’s market share Grow Service Facilitate evidence generation Superior clinical technology High customer satisfaction Increase awareness of PT benefits Fastest installation in the market Increase profitability Increase affordability of PT soluti
Slide 7: 2018 Highlights
2018 Highlights 7
Slide 8: Note
Note On July 20, 2018, IBA announced that it had decided to explore new strategic alternatives for IBA Dosimetry which could include a sale, merger, initial public offering, or retention of the business Following the announcement, IBA initiated a disposal process and determined that all criteria
Slide 9: YE 2018 business and financial highlights
YE 2018 business and financial highlights Proton Therapy and Other Accelerators 2018 FY 2018 FY 2017 Variance Variance revenues down 11.9% (EUR 000) (EUR 000) (EUR 000) % Full year REBIT amounted to EUR 0.9 million. PT & Other Accelerators 208 440 236 485 -28 045 -11.9% On a proforma basis inclu
Slide 10: Back to profitability in H2 2018
Back to profitability in H2 2018 Even excluding the Dosimetry business, H1 2018 H2 2018 FY 2018 numbers show the drastic improvement from (EUR 000) (EUR 000) (EUR 000) H1 to H2 2018 REBIT, REBITDA and bottom line profitability Net Sales PT and Other 90 353 118 087 208 440 achieved in H2 2018 tha
Slide 11: YE 2018 business and financial highlights
YE 2018 business and financial highlights Order intake Seven Proteus®ONE* solutions sold in the UK, Italy, China, Singapore and Belgium 3 systems financially activated (China, Singapore, Belgium) Strong sales in Other Accelerators: record 20 machines sold Boosted by sales of Cyclone®KIUBE,
Slide 12: YE 2018 business and financial highlights
YE 2018 business and financial highlights Equipment backlog for Proton Therapy and Other Accelerators close to 2017 at EUR 278 million (2017: EUR 283 million) Equipment backlog Upgrades 4% 400 Other accelerators Proteus®PLUS 350 332 336 23% 28% 300 283 278 278 249 256 240 244 250 216 193 200 179 1
Slide 13: YE 2018 business and financial highlights
YE 2018 business and financial highlights Steadily growing PT service backlog Service revenues for PT alone expected to exceed EUR 100 million by 2022 Service revenues for PT and Other Accelerators to exceed EUR 100 million by 2020 PT Service backlog PT Service Revenues 800 80 74 700 673 689 6
Slide 14: YE 2018 business and financial highlights
YE 2018 business and financial highlights Gross cash position (including Dosimetry for EUR 2.3 million) of EUR 38,7 million at end of 2018 (2017: EUR 27.3 million) Net debt position of EUR -47.1 million (including Dosimetry for EUR 2.3 million) at end 2018 compared to EUR -15.5 million at end 20
Slide 15: Proton Therapy and Other Accelerators
Proton Therapy and Other Accelerators
Slide 16: Proton Therapy & Other Accelerators
Proton Therapy & Other Accelerators FY 2018 FY 2017 Variance Variance Total net sales for Proton Therapy and Other (EUR 000) (EUR 000) (EUR 000) % Accelerators down 11.9% – Of the seven PT rooms sold, three were Net Sales 208 440 236 485 - 28 045 - 11.9% financially activated at year end Proton Th
Slide 17: Proton Therapy & Other Accelerators
Proton Therapy & Other Accelerators FY 2018 (EUR 000) FY 2017 (EUR 000) Variance (EUR 000) Variance % Services revenues represented 45.6% of total sales in 2018 against 36.1% of revenues in Equipment Proton Therapy 86 642 134 046 -47 405 -35.4% 2017, growing strongly by 11.2% vs the previous year
Slide 18: Update on Proton Therapy Market
Update on Proton Therapy Market 18
Slide 19: Proton therapy market evolution
Proton therapy market evolution * 45 41 40 35 30 25 25 25 22 20 19 18 15 13 12 12 12 10 10 10 9 8 8 7 7 7 5 5 5 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 PT market (rooms) IBA PT sales (rooms) 19 * Only commercial solutions 2018: 3 rooms financially activated by IBA
Slide 20: 2018 Global PT sales
2018 Global PT sales * IBA Activated 20 IBA INTERNAL USE ONLY
Slide 21: Global market share in rooms
Global market share in rooms Sales In operation Sumitomo Sumitomo Protom 6% 3% 8% Mevion Mevion 5% 6% Hitachi* Hitachi* 6% IBA 10% IBA 43% 45% Hitachi 272 167 14% Hitachi 14% Varian Varian 23% 17% 21 26/2/2018 * 4 centers not activated yet * Mitsubishi (MELCO) bought by Hitachi
Slide 22: IBA proton therapy centers
IBA proton therapy centers 54* Centers sold 25* Proteus®ONE 29 Centers in operation 116 Rooms sold 29 Proteus®PLUS 21** Centers in development 22 26/2/2018 * 4 centers not activated yet ** 21 centers in development based on activated contracts
Slide 23: Number of IBA centers in operation is growing fast
Number of IBA centers in operation is growing fast From 29 centers in operation today to 50+ beyond 2020 50 50 +35% 45 40 +32% 37 35 +22% 30 28 25 23 20 21 20 18 14 15 12 9 10 10 4 5 5 2 3 1 0 Number of IBA centers in operation based on activated contracts at end 2018 23
Slide 24: Number of patients treated on IBA solutions is growing fast
Number of patients treated on IBA solutions is growing fast 25000 From 12000 patients today to more than 22000 in 2021 22400 20066 20000 15305 15000 11520 10000 9273 8294 6993 5596 4813 4952 5000 3578 2753 2572 2459 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Patients tre
Slide 25: Proton Therapy Future
Proton Therapy Future
Slide 26: From research towards product
From research towards product Short term Mid term Long term Image Guidance Editable, Adaptive, Future of 1 for Moving Targets 2 Arc therapy 3 Proton Therapy and advanced QA Fast motion Online adaptive MR Guided estimation workflow Proton Therapy Prompt Log-based Arc therapy Gamma patient QA Flash Th
Slide 27: IBA Proton Arc therapy
IBA Proton Arc therapy Spot-Scanning Proton Arc therapy Enhances dose conformity at the tumor level Reduces the total dose received by the patient Increases the robustness of the treatment plan Improves the adoption of dose escalation and hypo- fractionation Proton Arc therapy proof of c
Slide 28: First irradiation of a proton ARC beam
First irradiation of a proton ARC beam World première in proton therapy Plan delivered in August 2018 In collaboration with Beaumont Health Proton Therapy Center 28
Slide 29: Proton Flash Therapy: less toxicities to healthy tissues
Proton Flash Therapy: less toxicities to healthy tissues Normal Tissue Standard RT – 17 Gy Flash – 17 Gy 0 Gy/s 0.03 Gy/s 60 Gy/s Flash could allow dose escalation with less complications IBA’s equipment is Flash ready IBA is the only company to have demonstrated Flash compatible dose rate in
Slide 30: Long-term potential of PT remains very encouraging
Long-term potential of PT remains very encouraging Dutch model approach is gaining momentum – University Medical Center Groningen (UMCG) has implemented advanced selection procedures for proton therapy in head and neck cancer patients ▫ Preliminary experience presents promising results ▪ To valida
Slide 31: Other Accelerators 2018 update
Other Accelerators 2018 update 31
Slide 32: Other accelerators – 2018 business update
Other accelerators – 2018 business update Sales of 20 Systems Contract signed for a 70 MeV project in Arizona, USA Excellent Rhodotron and Cyclone®Kiube sales in all regions Strong upgrade sales Promising Service pipeline Other Accelerators Sales 25 20 20 15 10 13 11 11 5 11 13 11 11 0 Cyc
Slide 33: RadioPharma Solutions
RadioPharma Solutions New generation Cyclone®KIUBE and Cyclone®70 Reach new markets Gain market shares Give access to latest applications (e.g. theranostics) Cyclone®70 Cyclone®KIUBE High energy and high current proton cyclotron Highest radiopharmaceuticals production capacity Producti
Slide 34: Industrial Solutions
Industrial Solutions New generation Rhodotron brings new perspectives Reach new markets Gain market shares Allows a unique alternative to Cobalt for sterilization Offers a new way to diagnose and treat cancer New TT50 TT100 TT200/TT300 TT1000 High Energy 34 Sterilization Sterilization Ster
Slide 35: Dosimetry 2018 update
Dosimetry 2018 update 35
Slide 36: IBA Dosimetry
IBA Dosimetry While Dosimetry order intake remained at prior year levels at around EUR 51 million, FY 2018 FY 2017 Variance Variance sales were down 6.3% mainly due to (EUR 000) (EUR 000) (EUR 000) % slower backlog conversion. Backlog remained high at EUR 15 million Dosimetry 50 449 53 837 -3 38
Slide 37: IBA Dosimetry – market and business update
IBA Dosimetry – market and business update Strategic review of IBA Dosimetry business On July 20, 2018, IBA announced that it had decided to explore new strategic alternatives for IBA Dosimetry which could include a sale, merger, initial public offering, or retention of the business Active dis
Slide 38: Consolidated financial statements
Consolidated financial statements 38
Slide 39: 2018 Consolidated P&L
2018 Consolidated P&L Gross margin as a percentage of sales up 4.7%, FY 2018 FY 2017 Variance Variance thanks to project mix and service performance (EUR 000) (EUR 000) (EUR 000) % SG&A expenses decreased strongly by EUR 9.5 Sales and services 208 440 236 485 - 28 045 - 11,9% million, as cost co
Slide 40: 2018 Cash Flow Statement
2018 Cash Flow Statement Cashflow from operations improved overall from last year as FY 2018 FY 2017 profitability increased from 2017 (EUR 000) (EUR 000) While inventories decreased, accounts receivable increased Cash flow from operating activities over the year. However, working capital improv
Slide 41: Outlook
Outlook 41
Slide 42: Guidance
Guidance Based on the current prudent outlook on the Proton Therapy market, IBA maintains guidance of positive REBIT for 2019 42
Slide 43: Conclusion
Conclusion IBA returned to profitability in the second half of the year IBA achieved a positive REBIT for the full year Excellent performance in Other Accelerators Excellent performance in Service Proton therapy remains a highly compelling opportunity IBA maintains guidance of positive R
Slide 44: Q&A
Q&A Olivier Legrain (CEO) and Soumya Chandramouli (CFO)
Slide 45: Shareholders structure Dec 2018
Shareholders structure Dec 2018 Belgian Anchorage SCRL 20,60% IBA Investment SCRL & IBA SA 2,24% UCL & Sopartec 2,02% SRIW & SFPI 2,53% Institut des Radioéléments FUP 4,72% Free Float 59,50% Capfi Delen Asset Management NV 2,63% Norges Bank Investment Management 2,85% Kempen Capital Management NV 2,