Ion Beam Applications Sa · EURONEXT:IBAB

Ion Beam Applications Sa — FY2016 Earnings Presentation

45 slides from Ion Beam Applications Sa's earnings presentation, Mar 23, 2017

  1. Slide 1: 2016 Full Year Results

    2016 Full Year Results 23 March 2017 Olivier Legrain (CEO) and Soumya Chandramouli (CFO) 1

  2. 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

  3. Slide 3: Proton therapy capacity gap - today

    Proton therapy capacity gap - today 3 Source : IBA internal modeling based on Model Based Approach developed in The Netherlands (https://www.gezondheidsraad.nl/sites/default/files/proton%20radiotherapy200917E_0.pdf)

  4. Slide 4: Proton therapy capacity gap - 2035

    Proton therapy capacity gap - 2035 Estimation of RT and PT rooms needed by 2035 - Radiotherapy rooms needed by 2035 estimated by Lancet Oncology - www.thelancet.com/oncology - ProtonTherapy rooms needed by 2035 extrapolated worldwide from the “Horizon Scanning : Proton Therapy “in the Netherlands ht

  5. Slide 5: IBA Strategy

    IBA Strategy (bo. aN mill Grow market from 1% to 20% or more Maintain or improve market share Increase clinical relevance Reduce cost of modality Enhance market penetration Leverage IBA expertise

  6. Slide 6: IBA Group – 2016 key figures

    IBA Group – 2016 key figures 6 6

  7. Slide 7: YE 2016 Business and Financial Highlights

    YE 2016 Business and Financial Highlights  Full-year 2016 guidance met  Total Group YE revenue up 21.6% vs YE 2015  REBIT 11.3% margin up 26%  Established leadership in Proton Therapy  17 PT rooms sold in 2016 (8 systems)  Leadership position in single room market confirmed 329M with 5 contrac

  8. Slide 8: YE 2016 Business and Financial Highlights

    YE 2016 Business and Financial Highlights  Strong growth in PT and Other Accelerators FY 2016 FY 2015 Variance Variance fuelled by execution on backlog (6 new PT (EUR 000) (EUR 000) (EUR 000) % installations started in 2016, fast execution in Other accelerator segment) and new PT & Other accelerato

  9. Slide 9: YE 2016 Business and Financial Highlights: Equipment backlog

    YE 2016 Business and Financial Highlights  Equipment backlog  Record period-end backlog for PT and other accelerators at EUR 335.5M (excludes H1 2016 order in China (Qingdao) awaiting down payment)  Growing importance of Proteus®ONE (42% today from 37% FY15) Backlog equipment 335.5 332.0 240.0 24

  10. Slide 10: YE 2016 Business and Financial Highlights: Services backlog

    YE 2016 Business and Financial Highlights  Proton Therapy services backlog  Steadily growing PT service backlog due to strong capture rate on new PT systems sales Figures in million euros 10

  11. Slide 11: YE 2016 Business and Financial Highlights: Order intake

    YE 2016 Business and Financial Highlights  Strong order intake:  Growing PT market with 8 systems sold in India (1 system, 3 rooms), China (2 systems, 9 rooms), US (1 room), UK (2 systems, 2 rooms), Belgium (1 room), Abu Dhabi (1 room)  Strong sales in Other Accelerators: 14 machines sold, booste

  12. Slide 12: YE 2016 Business and Financial Highlights: Net cash

    YE 2016 Business and Financial Highlights  Net cash EUR 44.5M compared to EUR 50.0 at end of 2015 (reminder: EUR 62.3M cash from Molecular received in Q1 and EUR 40.3M dividend paid Q2) 12

  13. Slide 13: IBA Group 2016 update

    IBA Group 2016 update IBA 30th celebrations 13

  14. Slide 14: Expansion Strategy – New factory

    Expansion Strategy – New factory  Assembly, integration and test of accelerators for Proteus®ONE  CAPEX: EUR 16 million investment program over 2 years  Digital factory  Green and sustainable  Lean – total combined capacity of 20 to 30 accelerators per year (from 8 to 10 today) 2018 14

  15. Slide 15: Expansion Strategy - Human Resources

    Expansion Strategy - Human Resources  Staffing  2016: Recruitment of 400 employees (1500 employees at end 2016)  2017: Recruitment of another 200 engineers and qualified staff Employee profile IBA employees worldwide 15

  16. Slide 16: Proton Therapy and Other Accelerators

    Proton Therapy and Other Accelerators 2016 update 16

  17. Slide 17: Proton Therapy & Other Accelerators

    Proton Therapy & Other Accelerators  Strong growth in service and equipment revenue FY 2016 FY 2015 Variance Variance (EUR 000) (EUR 000) (EUR 000) % recognition for Proton Therapy largely offset flat revenue recognition level for Other Accelerators Net Sales 280 666 216 261 64 405 29.8% (mostly du

  18. Slide 18: Proton Therapy & Other Accelerators

    Proton Therapy & Other Accelerators FY 2016 FY 2015 Variance Variance  Services accounted for approx. 29% of segment (EUR 000) (EUR 000) (EUR 000) % revenues at YE 16, slightly down due to strong (48%) growth of PT equipment revenues Equipment Proton Therapy 166 988 113 029 53 959 47.7%  Other acc

  19. Slide 19: Proton Therapy

    Proton Therapy 2016 update 19

  20. Slide 20: Market and Business Update 2016 - innovation

    Market and Business Update 2016 - innovation  Proteus®ONE  Certified in three major regions (USA, Japan and Europe)  First patient treated in Europe at Centre Antoine Lacassagne in Nice, France  Investment in HIL Applied Medical Ltd to develop laser-based proton therapy solution  Initiatives wi

  21. Slide 21: 2016 Proton Therapy orders

    2016 Proton Therapy orders Market Share - Systems Total in 2016: 15 centers (32 rooms) United States Florida Delray Beach Delray 1 Varian United States Alabama Birmingham UAB Medical Center 1 Varian United Kingdom Reading PPI 1 IBA United Kingdom Liverpool PPI 1 IBA China Qingdao Qingdao PT Center (

  22. Slide 22: Proton therapy centers equipped by IBA (end 2016)

    Proton therapy centers equipped by IBA (end 2016) Systems • 21 Systems Treating Patients & 17 Systems in Construction & 8 Systems in Installation • Total: 46 Systems Rooms • 67 Rooms Treating Patients & 24 Rooms in Construction & 20 Rooms in Installation • Total: 111 Rooms Proteus®ONE Proteus®PLUS 2

  23. Slide 23: Rate of sales increasing 55% vs previous years

    Rate of sales increasing 55% vs previous years PT Market - Number of rooms sold per year  Wider acceptance of PT  Competitive dynamics  Lower entry barriers to PT  Technology evolving  More centres opening Average p.a. 23

  24. Slide 24: Updated PT global market dynamics

    Updated PT global market dynamics  Number of patients treated with PT rose 21% between 140000 300 2012 and 2015 to 131 240 (cumulated)  Number of patients treated with PT in 2015: 13 195 120000 250  This still represents less than 1% of the ~4 000 000 cancer patients treated every year with radio

  25. Slide 25: Increasing relevance of proton therapy

    Increasing relevance of proton therapy 108 Trials Open and Recruiting Publications Statistics per Year End December 2016 Number of publications up to end of 2016 25 25 Data from https://clinicaltrials.gov/

  26. Slide 26: 61% of patients treated on IBA equipment

    61% of patients treated on IBA equipment Number of patients treated At the end of 2015 almost 50 000 patients* treated on IBA equipment On commercial PT systems at end 2016 More than all competitors combined 26 * Source: PTCOG 2015

  27. Slide 27: IBA is leading the installed base

    IBA is leading the installed base Share of installed base - Rooms Total accumulated: 250 rooms Including commercial PT rooms at end 2016 27

  28. Slide 28: PT market dynamics in North America

    PT market dynamics in North America  36 PT centers sold (102 rooms)  28 of which – or 78% - treat patients Share of Installed Base in NA - Rooms  13 of which – or 36% - are single-room systems  General market updates  PT reimbursement decrease by 13% for technical reasons, yet significantly abo

  29. Slide 29: PT market dynamics in Asia

    PT market dynamics in Asia Share of Installed Base in APAC  35 PT centers sold (87 rooms) (without Japan) - Rooms  16 of which – or 44% - treat patients  8 of which – or 23% - are single-room systems  General market trends  Rapid adaption of PT  More clinical evidence and lower capex increases

  30. Slide 30: PT market dynamics in Europe and ROW

    PT market dynamics in Europe and ROW  29 PT centers are sold (61 rooms) Share of Installed Base in Europe and  7 of which – or 24% - treat patients ROW in rooms  11 of which – or 38% - are single-room systems  General market trends  Increase of medical evidence  New countries adopting the tech

  31. Slide 31: Our strategy is to create a Virtuous Circle in PT

    Our strategy is to create a Virtuous Circle in PT  Enhance market penetration  Develop regionalization  Leverage partnership Strengthen Market Leadership PARTNERSHIPS Build clinical  Increase clinical relevance & cost  Reduce cost of modality advantage Accelerate PT adoption  Invest in clinica

  32. Slide 32: Other accelerators

    Other accelerators 2016 update 32

  33. Slide 33: RadioPharma Solutions – 2016 Business Update

    RadioPharma Solutions – 2016 Business Update  New market introductions  Cyclone®KIUBE cyclotron  IBA Synthera + chemistry box  Completed acceptance testing of two Cyclone® 70 New Cyclone®KIUBE Synthera + Cyclone® 70

  34. Slide 34: Industrial Activities – 2016 Business Update

    Industrial Activities – 2016 Business Update  Unveiling of the second generation Rhodotron  New compact and cost efficient TT50  More efficient use of power  First 1 MeV Easy-e-Beam ordered and under installation  Allows processing an extended range of wires  Next generation X-ray cargo screen

  35. Slide 35: Dosimetry

    Dosimetry 2016 update 35

  36. Slide 36: IBA Dosimetry

    IBA Dosimetry  Dosimetry sales down 11.1%, partly due to exceptional 2015 and low conversion FY 2016 FY 2015 Variance Variance rate on long-term orders, even though (EUR 000) (EUR 000) (EUR 000) % sales caught up over Q4 and conversion Dosimetry 48 108 54 096 -5 988 -11.1% rates improved (88% at en

  37. Slide 37: IBA Dosimetry – Market and Business Update

    IBA Dosimetry – Market and Business Update  Flat “conventional RT” market which impacts the dosimetry and QA market  First worldwide clinical implementation of Dolphin Online Ready Patient QA and Monitoring  At the radiation therapy department of the Klinikum Bayreuth GmbH in Germany  Fourth rel

  38. Slide 38: Consolidated Financial Statements

    Consolidated Financial Statements 38

  39. Slide 39: Consolidated P&L

    Consolidated P&L FY 2016 FY 2015 Variance Variance  Gross margin up 0.1% PT and other (EUR 000) (EUR 000) (EUR 000) % accelerators offsetting weaker Dosimetry Sales and services 328 774 270 357 58 417 21.6% performance Cost of sales and services 190 213 156 702 33 511 21.4% Gross profit/(loss) 138

  40. Slide 40: 2016 Cash Flow Statement

    2016 Cash Flow Statement FY 2016 FY 2015  Recurring operations impacted by the growth of (EUR 000) (EUR 000) activity at working capital level (mainly inventory) Cash flow from operating activities Net cash flow changes before changes in working capital 31 804 65 850  Level of CAPEX mostly investe

  41. Slide 41: Dividend and shareholders structure

    Dividend and shareholders structure Shareholders structure 31/12/16 Dividend Recommendation of a dividend of EUR 0.29 per share representing more than 35% of its net profit 41

  42. Slide 42: Guidance

    Guidance 42

  43. Slide 43: Guidance

    Guidance  IBA expects to achieve revenue growth between 15% to 20% in 2017 and double digit thereafter  REBIT margin guidance of approx. 11% to 12% in 2017; confirmation of the increase to 13%-15% by 2018 and stabilizing at 15% by 2020  30% dividend pay-out ratio target maintained for 2017  This

  44. Slide 44: Financial Calendar

    Financial Calendar  First Quarter Business Update  May 10, 2017  General Assembly  May 10, 2017  Half Year Business Update  August 24, 2017  Third Quarter Business Update  November 16, 2017 44

  45. Slide 45: Olivier Legrain (CEO) and Soumya Chandramouli (CFO)

    Olivier Legrain (CEO) and Soumya Chandramouli (CFO) 45

Ion Beam Applications SA (IBA) — FY2016 Earnings Presentation on 6ix