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© 2017 IBA SA
Jean-Marc BOTHY - CSO
Jefferies Healthcare Conference
June 8, 2017
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Disclaimer
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This presentation may contain forward-looking statements concerning industryoutlook, including growth drivers; the company’s future orders, revenues,backlog, or earnings growth; future financial results; market acceptance of ortransition to new products or technology and any statements using the terms“could,” “believe,” “outlook,” or similar statements are forward-lookingstatements that involve risks and uncertainties that could cause the company’sactual results to differ materially from those anticipated. The company assumesno obligation to update or revise the forward-looking statements in this releasebecause of new information, future events, or otherwise.
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IBA at a glance
A world leading innovator in cancer diagnostics and treatment
Number one provider of proton therapy solutions
Global leader in dosimetry and particle accelerators
1,500 employees worldwide and growing
Most advanced PT offering
Single and multi room systems equipped with cutting edge technology
3
€329M
*Proteus®ONE and Proteus®PLUS are brand names of Proteus 235
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IBA – a global leader in proton therapy
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Share of installed base - rooms
Total accumulated: 250 rooms
Including commercial PT rooms at end 2016
IBA market share is 56% in US, 54% in
APAC ex. Japan and 56% in EUR & ROW
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IBA Group – 2016 key figures
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Proton therapy market drivers – today’s capacity gap
6Source : IBA internal modeling based on Model Based Approach developed in The Netherlands (https://www.gezondheidsraad.nl/sites/default/files/proton%20radiotherapy200917E_0.pdf)
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Proton therapy capacity gap - 2035
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Estimation of RT and PT rooms needed by 2035- Radiotherapy rooms needed by 2035 estimated by Lancet
Oncology - www.thelancet.com/oncology
- Proton therapy rooms needed by 2035 extrapolated worldwide from the “Horizon Scanning : Proton Therapy “in the Netherlands www.gezondheidsraad.nl/sites/default/files/proton%20radiotherapy200917E_0.pdf
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IBA strategy
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Why proton therapy ? (The dose deposition)
Courtesy of Prof Lagendijk
The therapeutic index • Tumor control probability (TCP)
• Normal tissue complication probability (NTCP)
Define the maximal dose deliverable as a function of acceptable tolerance
Courtesy of El Naqa et al 2006a Int. J. Radiat. Oncol. Biol. Phys. 64 1275–86 11
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Proton therapy vs conventional radiotherapy
Tumor dose is
less than the entry
dose.
Highest dose is
near the point of
beam entry.
Dose is also
delivered beyond
the tumor target.
Highest dose is at
the depth of the
tumor target.
Minimal radiation exposure of healthy organs
Potential to reduce the risk of secondary cancers
Potential to improve the quality of life for patients during and after treatment
Possibility of retreatment
Zero or almost no
dose beyond
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Updated PT global market dynamics
Number of patients treated with PT rose 21% between 2012 and 2015 to 131 240 (cumulated)
Number of patients treated with PT in 2015: 13 195
This still represents less than 1% of the ~4 000 000 cancer patients treated every year with radiotherapy
11Source: MEDraysintell 2016, IBA model, PTCog 2016, and others
0
50
100
150
200
250
300
0
20000
40000
60000
80000
100000
120000
140000
1957 1967 1977 1987 1997 2007 2017
Patients treated Total rooms sold Room in operations
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Increasing relevance of proton therapy
1212Data from https://clinicaltrials.gov
End December 2016
108 trials open and recruiting Publications statistics per year
Number of publications up to end of 2016
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Rate of sales increasing 55% vs previous years
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PT market – number of rooms sold per year
Average p.a.
Wider acceptance of PT
Competitive dynamics
Lower entry barriers to PT
Technology evolving
More centres opening
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IBA’s unique proton therapy solutions
Proteus®PLUSExcellence in proton therapy
Tailor-made IMPT solution
Proteus®ONEProton therapy made easy
Compact single-room IMPT solution
Proteus®ONE and Proteus®PLUS are the brand names of the Proteus® 235
1800 m²360 m²
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Size matters
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ProteusONE Other 360° gantry one room system
Footprint 100 200
Volume 100 300
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Rational for compact one room system
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ProteusONE Other 360° gantry one roomsystem
Budget for one room system
Proton therapy system OIS/TPS Building
development costs financial cost Start-up expenses
Up to 35% more affordable
System 3 times heavier
3 times larger
building
3 months longer
to instal
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Pro
tect, E
nhance a
nd S
ave L
ives
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INSTANT 3D & CONE-
BEAM CT*
For Image-Guided PT
PATIENT AND
STAFF FRIENDLY
Open environment
PROVEN PENCIL BEAM SCANNINGFor highly conformal
IMPT
No compromises
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Proton therapy centers equipped by IBA (end 2016)
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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
2016: 8 systems sold (5 Proteus®One) in US, UK, China, India, UAE and Belgium
2017: 2 Proteus®One sold (Spain and Egypt) and selection for another Proteus®One in Belgium.
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Our strategy is to create a virtuous circle in PT
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Strengthen market
leadership
Enhance market penetration
Develop regionalization
Leverage partnership
Build
clinical
& cost
advantage
Increase clinical relevance
Reduce cost of modality
Accelerate
PT adoption Invest in clinical affairs initiatives
Focus on product roadmap
PARTNERSHIPS
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Expansion strategy – new factory
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2018
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)
Opening in Q1 2018
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Image-guided proton therapy
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CBCT Penn Medicine, USA CT-on-rails, Trento, Italy
courtesy of Roberts Proton Therapy Center
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Excellence in proton therapy: integration
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Xio (Elekta) : 12 centers
Eclipse (Varian) : 7 centers
RayStation (Raysearch) : 17
centers
Pinnacle*(Philips) : 4 sites
Mosaiq (Elekta) : 20 centers
Aria (Varian) : 3 centers
RayCare (Raysearch): In
development
IBA
TPS/OIS: open vendor strategy
(freedom to choose according to your need)
Treatment planning Oncology information system Proton treatment delivery system
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2017 Q1 update
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Group revenues of EUR 73,2 million, up 13,5% compared to first quarter 2016
Proton Therapy and Other accelerators backlog amounts to EUR 316 million
Proton Therapy revenues continue to grow with 8 projects now under installation simultaneously
Other Accelerators show a drop from last year. Last year was boosted by the installation of two large high energy cyclotrons
Dosimetry returns to growth up 19% to EUR 14.5 million
Q1 2017
(EUR 000)
Q1 2016
(EUR 000)
Variance
(EUR 000)
Variance
%
Proton therapy 51.316 41.434 9.882 23,8%
Other Accelerators 7.402 10.988 -3.586 -32,6%
Dosimetry 14.555 12.208 2.347 19,2%
Total Net Sales 73.273 64.630 8.643 13,4%
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Guidance
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IBA expects to achieve revenue growth between 15% to 20% in 2017 and double digit thereafter
The Company expects its operating margin to be 10% to 12% in 2017, increasing to around 13% by 2018 and stabilizing at around 15% by 2020.
30% dividend pay-out ratio target maintained for 2017
This guidance is not only based upon the continued expected growth of the proton therapy market but also thebalance between the economies of scale that we can achieve at a higher production rate. In addition, the growingimportance of service revenue versus the increased demand driven by the equipment price tag reduction in theproton therapy market and our continued investment in R&D and software capabilities are anticipated to becontributing factors.
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Pro
tect, E
nhance a
nd S
ave L
ives
Thank you
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