IBA GROUP : SA : Operating Profits Rise 16% at IBA as Margins Approach 10% Target Level

Operating Profits Rise 16% at IBA as Margins Approach 10% Target Level

Louvain-La-Neuve, Belgium, 28 August 2014 - IBA (Ion Beam Applications S.A., EURONEXT), the world's leading provider of proton therapy solutions for the treatment of cancer, today announces its consolidated results for the first half of 2014.

                    REBITDA: Recurring earnings before interest, taxes, depreciation and amortization
                           REBIT: Recurring earnings before interest and taxes
                          

Business Highlights

• EUR 60 million order intake in H1, including two Proteus^®ONE* systems, nine other accelerators predominantly in emerging markets and one Cyclone 70 MeV in Russia
• US Food and Drug Administration (FDA) approval of IBA's new compact gantry in July 2014, clearing all US regulatory hurdles for Proteus^®ONE, IBA's smaller and more affordable compact treatment room
• Continued interest in Proteus^®ONE, with two new contracts signed in the highly competitive market of Japan
• IBA selected to install first proton therapy center in the Netherlands. IBA to equip new center with Proteus^®PLUS two-gantry room configuration including next generation Pencil Beam Scanning capability
• Completion of assets sale in PharmaLogic PET Services in Montreal. Positive impact of approximately EUR 3.7 million on 2014 full year results

Financial Highlights

• Revenues of EUR 98.2 million, up 0.8% vs EUR 97.4 million in H1 2013. Strong growth in service revenues offset by decline in PT equipment revenues due to customer production planning
• REBIT rises to EUR 9.6 million, up 16.3%, and margins increase to 9.8% (H1 2013: 8.5%)
• Reported net profit of EUR 7.4 million (H1 2013: EUR 4.1 million)
• Strong EUR 194 million backlog, up 6% vs end of 2013
• Financial capacity reinforced through EUR 20 million fundraising. Net cash of EUR 10.8 million at end H1 2014

Olivier Legrain, Chief Executive of IBA, commented: "We are pleased to see strong profit growth at all levels during the first half of the year, driven in particular by productivity improvements and by a significant increase in the more sustainable service revenues, which now represent 35% of the PT and accelerator segment revenue base. Looking into the second half of the year, we continue to see strong interest from the clinical community in proton therapy and the order book remains strong. We are also encouraged by the FDA's approval of our new compact gantry system, which we expect to lead to increased sales of Proteus^®ONE going forward. We are on track to achieve our guidance of 5-10% revenue growth for the full year and to reach our 10% REBIT margin target in 2014."

Conference Call Information:
IBA will host a conference call and webcast today at 2pm CET / 1pm BST / 8am EDT. Olivier Legrain, Chief Executive Officer, and Jean-Marc Bothy, Chief Financial Officer, will host the call which will be conducted in English.  The conference call will be webcast live and may be accessed on the investor page of the IBA website at: http://www.iba-worldwide.com/?page=investor-relations:
http://www.iba-worldwide.com/?page=investor-relations. If you would like to participate in the Q&A, please dial (PIN code 69403589#):

Belgium: +32 2 404 03 05
UK: +44 207 750 9926
NL:  +31 207 133 488
LU: +352 278 601 66
US: +1 914 885 0779
FR: +33 172 040 033

Shortly after the call, the webcast presentation will be available on the Company's website.

Financial calendar
Third Quarter business update                                            November 13, 2014
Full Year results 2014                                                         March 26, 2015

About IBA
IBA (Ion Beam Applications S.A.) is a cancer diagnostics and treatment equipment company, and the worldwide technology leader in the field of proton therapy, the most advanced form of radiotherapy available today.

The Company's primary expertise lies in the development of next generation proton therapy technologies that provide oncology care providers with premium quality services and equipment.  IBA's proton therapy solutions are scalable and adaptable, offering universal full scale proton therapy centers as well as next generation compact, single room systems.  IBA also focuses on the development and supply of dosimetry solutions for Quality Assurance of medical equipment and increased patient safety as well as particle accelerators for medical and industrial applications.

Headquartered in Belgium and employing more than 1,000 people worldwide, IBA currently has installed systems across Europe and the US and is expanding into emerging markets. The Company is focused on building sustainable global growth for investors, providing solutions in the fight against cancer.

IBA is listed on the pan-European stock exchange EURONEXT. (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB) and more information can be found at: www.iba-worldwide.com:
http://www.iba-worldwide.com

* Proteus^®ONE is the brand name of a new configuration of the Proteus^® 235.

For further information please contact:

IBA
Jean-Marc Bothy
Chief Financial Officer
Tel: +32 10 47 58 90

Thomas Ralet
Vice-President Corporate Communication
+32 10 47 58 90
communication@iba-group.com:
mailto:communication@iba-group.com
For media and investor enquiries:
Consilium Strategic Communications
Amber Bielecka, Mary-Jane Elliott, Matthew Neal, Jessica Hodgson and Ivar Milligan
+44 (0) 203 709 5700
IBA@consilium-comms.com:
mailto:IBA@consilium-comms.com