Ion Beam Applications SA · EURONEXT:IBAB
Ion Beam Applications SA — FY2013 Earnings Presentation
44 slides from Ion Beam Applications SA's earnings presentation, Mar 26, 2014
Slide 1: 2013 FY Results
2013 FY Results 26 March 2014
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: 2013 FY Business and Financial Highlights
2013 FY Business and Financial Highlights IBA reports strong uplift in 2013 operating profits FY 2013 FY 2012 Change Revenue catch up in H2 (EUR 000) (EUR 000) (EUR 000) % Sales & Services 212.512 221.106 -8.594 -3,9% Group equity increased > EUR 9M REBITDA 22.743 20.425 2.318 11,3% % of Sales
Slide 4: Final settlement of all legacy issues
Final settlement of all legacy issues Final settlement on all legacies issues: Final contract signed with Westdeutsches Protonentherapiezentrum Essen GmbH (WPE) Long-term operations and maintenance contract under standard commercial terms Trento loan (EUR 30M) fully reimbursed in Q3 Sale o
Slide 5: PT – Strong growth potential for IBA
PT – Strong growth potential for IBA The Proton Therapy market has a significant, untapped growth potential From 1% of RT patients treated today to potentially 20% tomorrow Key to this growth is: Clinical value demonstration Overall affordability Integration of imaging and increased digi
Slide 6: More than 17% of RT patients treated with PT!
More than 17% of RT patients treated with PT ! TODAY PROOF 5-10 YEARS PROOF 15-25 YEARS Reduced Side Effects (12.1% of RT patients) Intracranial GI (Esophagus, H&N gastric, rectal, Urologic pancreas) Lung Lymphoma Accepted standard Breast Sarcoma Reduced 2nd Cancers (0.6% of RT patients) Gynecologic
Slide 7: Sizing of PT Market
Sizing of PT Market Defining the applicable cases for PT in a given geography and population Potential number of PT rooms 271 527 1046 According to IBA: 750 rooms in Europe and USA (> 2000 worldwide) According to Varian: 1000 rooms worldwide According to ProNova: 8000 PT rooms worldwide 158
Slide 8: Proton Therapy Market Share
Proton Therapy Market Share 1995 - 2013 Proton Room Sold Share Operating Rooms Share Proton Centers Sold Share Mevion Mevion Hitachi Hitachi 7% Hitachi 1% 12% 15% SHI 18% 2% Varian Mevion 8% 19% Varian SHI 12% 4% MELCO 12% Varian 7% MELCO 8% SHI 6% MELCO IBA 7% IBA IBA 51% 46% 65% Protect, Enhance a
Slide 9: IBA: Unrivalled Experience In Proton Therapy
IBA: Unrivalled Experience In Proton Therapy IBA – Leader in Proton Therapy 25+ 25+ 25,000+ YEARS OF CENTERS SOLD PATIENTS TREATED EXPERIENCE 200+ system engineers Install : 3 yrs reduced to 12 months Largest user community 98% average uptime On time – on budget Clinical translation of experience Pr
Slide 10: IBA: Unrivalled Experience In Proton Therapy
IBA: Unrivalled Experience In Proton Therapy More IBA treatment rooms are available to patients every year 63 IBA sold a total of 74 rooms today In 2013, installation of 3 PT centers 53 • Procure PT center in Seattle • Provision PT center in Knoxville 43 • ATreP center in Trento 27 2012 2013 2014 20
Slide 11: How IBA Addresses the Market
How IBA Addresses the Market Three strategic axes Proton Therapy more affordable Proteus®ONE Fast delivery of reliable clinical systems Demonstration of the clinical value Assist clinical partners in setting up clinical studies Deployment of Pencil Beam Scanning (PBS) Educational information to do
Slide 12: Proteus, from single room to multi-room
The only proven clinical proton therapy technology Broad spectrum proton therapy offering Proteus , from single room to multi-room ® A game changer: Smaller footprint (360m²) Easier to finance (leasing…) Faster to install (18 months from order to clinical) Most advanced clinical features (PB
Slide 13: ProteusONE News Line
ProteusONE News Line Becoming a reality Sale of Magnetic field reach for Beam ON Synchrocyclotron ProteusONE in new Synchrocyclotron Nice, France Sale of ProteusONE in Taiwan Beam ON FDA Filing @ ProteusONE in Gantry & Imaging Shreveport, USA Factory Demo Jan 13 July 13 Jan 14 Protect, Enhance, and
Slide 14: Pencil Beam Scanning (PBS)
Pencil Beam Scanning (PBS) For Intensity Modulated Proton Therapy (IMPT) PBS is the most advanced proton therapy delivery technique PBS technology enables millimeter precision allowing for the proton dose to be sculpted Better conformity PBS DEDICATED NOZZLE Lower integral dose Easiest plannin
Slide 15: Pencil Beam Scanning (PBS)
Pencil Beam Scanning (PBS) More IBA PBS treatments are delivered every day today 25 20 20 17 16 13 10 6 2012 2013 2014 2015 IBA centers with PBS accepted IBA centers in operation Protect, Enhance and Save Lives - 15 -
Slide 16: Pencil Beam Scanning is Accelerating Market Adoption
Pencil Beam Scanning is Accelerating Market Adoption Penn Medicine results = More Proof Generated (Since November 2011) 8 new indications added Case Mix : Prostate <15% • Advanced Prostate Cancer • Rectal Cancer GU/prostate 5% 5% 15% • Anal Cancer 10% GI tumors • Oropharyngeal Cancer 10% 20% Pediatr
Slide 17: Developing the Knowledge of Proton Therapy
Developing the Knowledge of Proton Therapy Through Exclusive User Meetings Dresden 2012 Chicago 2013 Paris 2014 Fastest growing user community in the radiation therapy world defining the future of PT
Slide 18: Scientific publications are booming!
Scientific publications are booming ! Yearly Scientific Publications on Proton Therapy 350 300 250 Articles on Proton Therapy for Lung, 200 Prostate, Liver and Pediatric cancers 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 15 to 20 new clinical trials in Proton Therapy every year Protect, En
Slide 19: IBA best positioned in a game-changing market
IBA best positioned in a game-changing market Conclusion Proton Therapy Clinical Advantage with PBS Affordable ProteusONE Leveraging Installed Base Adaptive proton therapy
Slide 20: Other Accelerators
Other Accelerators RadioPharma Solutions and Industrial Applications
Slide 21: IBA RadioPharma Solutions
IBA RadioPharma Solutions IBA: global leader in medium and high energy cyclotrons Installed base of above 200 cyclotrons worldwide In-depth experience in setting up medical radiopharmaceutical production centers Positive growth expected Increased demand for Positron Emission Tomography (PE
Slide 22: IBA RadioPharma Solutions
IBA RadioPharma Solutions Update 2013 IntegraLab • Unique in-house team of experts to set up radiopharmaceuticals production GMP centers • In 2013, launch of IntegraLabONE ready-to-run integrated PET center Cyclone 18 • Record sales in 2013 Cyclone 70 • Market share mid energy cyclotrons (last 5 yea
Slide 23: IBA Industrial Applications
IBA Industrial Applications Two markets: The sterilization of single-use medical products IBA Rhodotron® technology is faster and enables to avoid contamination by chemical products or radioactive material Today IBA supplies more than 90% of installed power in the electron-beam sterilization
Slide 24: IBA Industrial Applications
IBA Industrial Applications 2013 update Rhodotron DUO Launch of Rhodotron DUO on sterilization market Rhodotron DUO makes X-ray affordable Allows to sterilize medical devices either by X-ray or by electron beam treatment IBA plans to break into other sterilization markets such as gamma ray a
Slide 25: Dosimetry
Dosimetry Calibration and Verification Equipment Protect, Enhance and Save Lives - 25 -
Slide 26: IBA Dosimetry
IBA Dosimetry Radiation Therapy Linac commissioning and quality assurance of machine and patient plan, for safer patient treatments Medical Imaging Full solution provider in quality control in diagnostics imaging, for better diagnosis Image Markers Clear tumor localization, for higher targeting accu
Slide 27: IBA Dosimetry
IBA Dosimetry 2013 update With over 10,000 users worldwide, IBA Dosimetry is the market leader Dosimetry is expected to experience good growth in the coming years with single digit annual growth rates anticipated in developed markets with double digit growth in emerging markets IBA Dosimet
Slide 28: Earnings Review
Earnings Review
Slide 29: Overview
Overview Top line impacted by FX and slow down on the USD market for Dosimetry and low conversion rate of PT projects Strong H2 (18% above H1) Operational profitability increase thanks to efficiency program and growing importance of customer service activity Positive result before IAS 21.48
Slide 30: IAS 21.48
IAS 21.48 IAS 21.48 foresees that in the case of disposal or liquidation, accumlated CTA should be recycled through P&L IBA closed a dormant holding company in Sweden 2013 Accumulated CTA represented EUR 7,1M EUR Recycling has no impact on the company equity but shows in the year’s P&L Act
Slide 31: Proton Therapy & Other Accelerators
Proton Therapy & Other Accelerators FY 2013 FY 2012 Variance Variance (EUR 000) (EUR 000) (EUR 000) % Net Sales 166 589 172 204 -5 615 -3.3% - Proton Therapy 121 202 133 213 -12 011 -9.0% - Other Accelerators 45 387 38 991 6 396 16.4% REBITDA 15 320 12 402 2 918 23.5% % of Sales 9.2% 7.2% REBIT 11 6
Slide 32: Growing importance of service revenues
Growing importance of service revenues Growing importance of the PT and Other Accelerators service revenues Growth driven by the increase in the PT installed base. 2012 2013 PT Operation & maintenance backlog PT and Other Accelerators service revenues Protect, Enhance, and Save Lives - 32 -
Slide 33: Dosimetry
Dosimetry FY 2013 FY 2012 Variance Variance (EUR 000) (EUR 000) (EUR 000) % Net Sales 45 923 48 902 -2 979 -6.1% - Dosimetry 45 923 48 902 -2 979 REBITDA 7 423 8 023 -600 -7.5% % of Sales 16.2% 16.4% REBIT 6 715 7 668 -953 -12.4% % of Sales 14.6% 15.7% Uncertainties in the US medical device market
Slide 34: Below REBIT
31/12/13 31/12/12 Variance Below REBIT Sales and contract revenue (EUR '000) (EUR '000) 212.512 221.106 (EUR '000) -8.594 % -3,9% Cost of sales and contract costs 124.085 134.218 -10.133 -7,5% Gross profit/(loss) 88.427 86.888 1.539 1,8% 41,6% 39,3% Selling and marketing expenses 18.322 20.959 -2.63
Slide 35: Cash Flow and Balance Sheet elements
Cash Flow and Balance Sheet elements
Slide 36: Cash Flow statement
Cash Flow statement Operating CF improved Dec . 31, 2013 Dec . 31, 2012 thanks to acceptance of trento (EUR '000) (EUR '000) Investing CF impacted CASH FLOW FROM OPERAT ING ACT IVIT IES 6.763 -30.736 (13M) by disposal of Bioassays CASH FLOW FROM INVEST ING ACT IVIT IES 5.855 42.803 Financing C
Slide 37: Net Financial position
Net Financial position NFP dramatically improved in H2 with IBA Group Net financial position déc-12 -27.985 juin-13 -58.007 déc-13 -18.130 YTD -7.321 the reimbursement of the Trento Loan Cash & Debt position NFP further improved beginning of 2014 0 Net financial déc-12 juin-13 déc-13 YTD positio
Slide 38: Gross debt
Gross debt Drastic reduction of the total gross debt of the group End of 2013 situation: EUR 20M subordinated loan with SRIW IBA Group Dec-12 Jun-13 déc-13 YTD EUR 25,6M EIB Gross debt 70.479 79.625 47.072 46.446 EUR 0,8M other Gross debt 90.000 80.000 70.000 60.000 50.000 40.000 30.000 De
Slide 39: Other short term and long term assets
Other short term and long term assets Further possibility to improve IBA net financial position from other assets in balance sheet resulting from disposals made in the last 2/3 years: Total value of the assets related to Molecular in IBA books: EUR 34,5M Earn out on Bioassays: EUR 2M Vendor
Slide 40: Guidance
Guidance Protect, Enhance, and Save Lives - 40 -
Slide 41: Backlog
Backlog Backlog still in the EUR +/-200M average zone and strong pipeline gives high visibility on the 5 – 10% growth guidance Backlog end of 2013: EUR183,7M Proton Therapy EUR141,8M Other Accelerators: EUR41,9M Protect, Enhance, and Save Lives - 41 -
Slide 42: Guidance: Top line
Guidance: Top line 2014: 5 to 10% top line growth based on: Equipment backlog (EUR 183M) Pipeline O&M PT backlog (EUR 41M) Growing importance of revenues non-project related (about 50% est.) Over 90% of proton therapy and medical accelerators revenues secured based on service contract po
Slide 43: Guidance: Bottom line
Guidance: Bottom line 10% operating profit for the year 2014 ACT 2012 ACT 2013 EXTRAP 2014 Operating profit 7,60% 8,70% 10,0% Full impact of efficiency program as of Jan. 1, 2014 and growing service revenues Protect, Enhance, and Save Lives - 43 -
Slide 44: Thank You
Thank You Questions and Answers Protect, Enhance, and Save Lives - 44 -
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