Ion Beam Applications, SA

Interim / Quarterly Report • Aug 31, 2023

ION BEAM APPLICATIONS SA ("IBA") INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2023

IFRS INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

General information 3
Interim condensed consolidated statement of financial position 5
Interim condensed consolidated income statement for the six months ended June 30 6
Interim condensed consolidated other comprehensive income for the six months ended June 307
Interim condensed consolidated statement of changes in equity for the six months ended June 30 8
Interim condensed consolidated statement of cash flow for the six months ended June 309
Notes to interim condensed consolidated financial statement10
1.Financial statements – basis of preparation 10
2.Significant events and transactions 11
3.Consolidation scope and the effects of changes in the composition of the group 13
4.Critical accounting estimates and judgments 15
5.Operating segments 19
6.Earnings per share 22
7.Other selected disclosures 24
8.Interim management report (O/S finalisation of the press release) 32 Glossary of alternative performance measures (APM) 38 Auditor's report on the IFRS interim condensed consolidated financial statements at June 30, 2023
39

General information

Ion Beam Applications SA (the "Company"), founded in 1986, together with its subsidiaries (referred to as the "Group" or "IBA") continue to develop key technologies for the diagnosis and treatment of cancer and provides efficient and reliable solutions with an unequaled accuracy. IBA also offers innovative solutions to improve everyday hygiene and safety.IBA is organized into two business segments to manage its activities and monitor its financial performance.

• ➢ The Proton therapy and other accelerators segment, which constitutes the technological basis of the Group's businesses and encompasses development, manufacturing and services associated with medical and industrial particle accelerators and proton therapy solutions as well as proton therapy licencing.
• ➢ The Dosimetry segment, which includes the activities that offer a full range of innovative high-quality solutions and services that maximize efficiency and minimize errors in radiation therapy and medical imaging Quality Assurance and calibration procedures.

The Company is a limited liability company incorporated and registered in Belgium. The address of the registered office is: Chemin du Cyclotron, 3, B-1348 Louvain-la-Neuve, Belgium.

The Company is listed on the pan-European stock exchange Euronext and is included in the BEL Mid Index (BE0003766806).

Consequently, IBA has agreed to follow certain rules to enhance the quality of financial information provided to the market. These include:

• ➢ Publication of its annual report, including its audited annual consolidated financial statements, within four months from the end of the financial year;
• ➢ Publication of a half-year unaudited report covering the first six months of the financial year within two months from the end of the second quarter;
• ➢ Publication of half-year and annual consolidated financial statements prepared in accordance with IFRS;

➢ Audit of its annual consolidated financial statements by its auditors in accordance with the auditing standards of the International Federation of Accountants ("IFAC").

These interim condensed consolidated financial statements have been approved for issue by the Board of Directors on August 28, 2023. The Board of Directors of IBA is composed as follows:

Internal directors: Messrs. Olivier Legrain and Yves Jongen, and Saint-Denis SA represented by Mr. Pierre Mottet. Olivier Legrain is Managing Director and Chief Executive Officer. His mandate was renewed at the Ordinary General Meeting of shareholders held on June 14, 2023; his term will expire at the Ordinary General Meeting of shareholders in 2026, which will approve the 2025 financial statements. Yves Jongen is Managing Director and Chief Research Officer. His mandate was renewed at the Ordinary General Meeting of shareholders of June 9, 2021; his term will expire at the Ordinary General Meeting of shareholders in 2024, which will approve the 2023 financial statements. The mandate of Saint-Denis SA was renewed as an internal director at the Ordinary General Meeting of shareholders of June 8 2022; his term will expire at the Ordinary General Meeting of shareholders in 2025, which will approve the 2024 financial statements.

External Directors: Consultance Marcel Miller SCS represented by Mr. Marcel Miller, Hedvig Hricak (in a personal capacity), Bridging for Sustainability SPRL represented by Sybille Van Den Hove d'Ertsenryck. Consultance Marcel Miller SCS was renewed as an external director during the Ordinary General Meeting of shareholders held on June 14, 2023; its term will expire at the Ordinary General Meeting of shareholders of 2026, which will approve the 2025 financial statements. Hedvig Hricak was renewed as an external director during the Ordinary General Meeting of shareholders held on June 8 2022; her term will expire at the Ordinary General Meeting of shareholders of 2025, which will approve the 2024 financial statements. Bridging for Sustainability SPRL (represented by Sybille Van Den Hove d'Ertsenryck) was appointed external director during the Ordinary General Meeting of shareholders held on June 14, 2023; its term will expire at the Ordinary General Meeting of shareholders of 2026, which will approve the 2025 financial statements.

Other directors:

Following a decision of the Board of directors held on August 24, 2020, the Board unanimously decided to coopt Nextstepefficiency SRL, represented by its permanent representative, Mrs. Christine Dubus, and Dr. Richard A. Hausmann as Independent Directors.

Their mandates were renewed at the Ordinary General Meeting of shareholders of June 9, 2021 and will expire at the Ordinary General Meeting of shareholders in 2024, which will approve the 2023 financial statements.

The Board acts in accordance with the guidelines established in its Corporate Governance Charter as approved by the Board of Directors meeting of December 18, 2020. A copy of the charter can be found on the IBA website (https://www.ibaworldwide.com/investor-relations/governance).

Interim condensed consolidated statement of financial position

The Group has chosen to present its balance sheet on a current/non-current basis. The notes on pages 10 to 38 are an integral part of these condensed interim consolidated financial statements.

(EUR 000)	Note	December 31, 2022 (audited)	June 30, 2023 (reviewed)
ASSETS
Goodwill	7.2	10 262	10 294
Other intangible assets	7.2	7 578	11 475
Property, plant and equipment	7.2	18 952	19 243
Right-of-use assets	7.2	27 116	28 070
Investments accounted for using the equity method		273	254
Long-term financial assets	4.6	3 847	2 767
Deferred tax assets	4.1	20 211	19 554
Other long-term assets	7.3	35 184	35 581
Non-current assets		123 423	127 238
Inventories	7.4	101 017	133 819
Contract assets	7.5	39 391	55 747
Trade receivables		111 649	93 728
Other receivables	7.6	89 893	94 829
Short-term financial assets	4.6	160	1 569
Cash and cash equivalents	7.7	158 366	103 311
Current assets		500 476	483 003
TOTAL ASSETS		623 899	610 241
EQUITY AND LIABILITIES
Capital stock and Share Premium	7.8	85 980	85 980
Reserves and Retained earnings		29 971	924
Capital and reserves		115 951	86 904
Non-controlling interests		0	0
EQUITY		115 951	86 904
Long-term borrowings	6.9	10 647	10 748
Long-term lease liabilities	6.10	20 811	21 279
Long-term provisions	6.11	7 479	6 735
Long-term financial liabilities	4.6	1 221	523
Deferred tax liabilities		756	1 317
Other long-term liabilities	6.12	5 862	4 691
Non-current liabilities		46 776	45 293
Short-term borrowings	7.9	3 734	3 734
Short-term lease liabilities	7.10	5 675	5 823
Short-term provisions	7.11	7 647	7 742
Short-term financial liabilities	4.6	2 907	1 064
Trade payables		65 559	65 723
Current income tax liabilities		3 853	3 548
Other payables	7.12	75 578	83 901
Contract liabilities	7.5	296 219	306 509
Current liabilities		461 172	478 044
TOTAL LIABILITIES		507 948	523 337
TOTAL EQUITY AND LIABILITIES		623 899	610 241

Interim condensed consolidated income statement for the six months ended June 30

The Group has chosen to present its income statement using the "function of expenses" method. The notes on pages 10 to 38 are an integral part of these IFRS interim condensed consolidated financial statements.

		June 30, 2022	June 30, 2023
(EUR 000)	Note	(reviewed)	(reviewed)
Sales of equipment and licences		94 990	93 678
Services of services		65 042	75 740
Total sales	5.1	160 032	169 418
Cost of sales and services (-)	5.1	-97 455	-124 380
Gross profit		62 577	45 038
Selling and marketing expenses (-)		-11 358	-14 035
General and administrative expenses (-)		-26 761	-27 099
Research and development expenses (-)		-19 894	-24 200
Other operating expenses (-)	7.13	-2 382	-462
Operating result (EBIT)	4	2 182	-20 758
Financial expenses (-)		-3 135	-6 349
Financial income		1 250	4 470
Share of profit/(loss) of associates accounted for using the equity method		0	-19
Profit/(loss) before taxes		297	-22 656
Tax income/(expenses)	7.14	-2 014	-4 607
Profit/(loss) for the period		-1 717	-27 263
Attributable to :
Equity holders of the parent		-1 717	-27 263
Non-controlling interests		0	0
Earnings per share (EUR per share)
Basic	6.1	-0.0589	-0.9367
Diluted	6.2	-0.0589	-0.9367

Interim condensed consolidated other comprehensive income for the six months ended June 30

		June 30, 2022
(EUR 000)	Notes	(reviewed)	June 30, 2023 (reviewed)
Profit/(loss) for the period		-1 717	-27 263
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
- Exchange differences on translation of foreign operations		-797	2 775
- Exchange difference related to net investment		-278	556
- Net movement on cash flow hedges		-7 502	3 390
Net other comprehensive income to be reclassified to profit or loss in
subsequent periods		-8 577	6 721
Other comprehensive income not to be reclassified to profit or loss in subsequent periods :
- Revaluation at fair value of other investments		-11 097	-2 736
- Movements in post-employment benefits	7.11	2 953	-102
Net other comprehensive income not to be reclassified to profit or loss in
subsequent periods		-8 144	-2 838
Total Other comprehensive income for the year		-16 721	3 883
Total comprehensive income for the year		-18 438	-23 380

Interim condensed consolidated statement of changes in equity for the six months ended June 30

(EUR 000)	Capital stock (Note 7.8)	Share premium (Note 7.8)	Treasury shares (Note 7.8)	Hedging reserves	Other reserves – value of stock option plans and share based	Other reserves – defined benefit plans	Other reserves - Revaluation reserves	Other reserves - Other	Currency translation difference	Retained earnings	TOTAL Shareholders' equity and reserves
Balance as at	42 413	42 836	-12 613	-8 440	compensation 16 684	-4 064	4 014	154	-6 315	51 227	125 896
January 1, 2022
Profit/(loss) for the period	0	0	0	0	0	0	0	0	0	-1 717	-1 717
Other comprehensive income	0	0	0	-7 502	0	2 953	-11 097	0	-1 075	0	-16 721
Total comprehensive income for the period,	0	0	0	-7 502	0	2 953	-11 097	0	-1 075	-1 717	-18 438
Dividends	0	0	0	0	0	0	0	0	0	-5 599	-5 599
Employee stock options and share-based payments	0	0	0	0	477	0	0	0	0	0	477
Purchase & sale of treasury shares	0	0	-5 160	0	0	0	0	0	0	0	-5 160
Other changes	0	0	0	0	0	0	0	0	0	9	9
Balance at June 30, 2022 (reviewed)	42 413	42 836	-17 773	-15 942	17 161	-1 111	-7 083	154	-7 390	43 920	97 185
Balance as at January 1, 2023	42 502	43 478	-18 328	-8 403	17 625	-515	-6 408	154	-5 585	51 431	115 951
Profit/(loss) for the period	0	0	0	0	0	0	0	0	0	-27 263	-27 263
Other comprehensive income	0	0	0	3 390	0	-102	-2 736	0	3 331	0	3 883
Total comprehensive income for the period	0	0	0	3 390	0	-102	-2 736	0	3 331	-27 263	-23 380
Dividends	0	0	0	0	0	0	0	0	0	-6 126	-6 126
Employee stock options and share-based payments	0	0	0	0	459	0	0	0	0	0	459
Other changes	0	0	0	0	0	0	0	0	0	0	0
Balance at June 30, 2023 (reviewed)	42 502	43 478	-18 328	-5 013	18 084	-617	-9 144	154	-2 254	18 042	86 904

Interim condensed consolidated statement of cash flow for the six months ended June 30

The group has chosen to present the cash flow statement using the indirect method. The notes on pages 10 to 36 are an integral part of these IFRS interim condensed consolidated financial statements.

(EUR 000)	Note	June 30, 2022 (reviewed)	June 30, 2023 (reviewed)
CASH FLOW FROM OPERATING ACTIVITIES
Net loss for the period		-1 717	-27 263
Adjustments for :
Depreciation of tangible assets	6.2	4 307	4 569
Amortization of intangible assets	6.2	732	855
Allowance for estimated credit loss on receivables		4 076	203
Changes in fair value of financial assets (profits)/losses		-3 408	-680
Changes in provisions	6.11	1 641	433
Deferred taxes	6.15	-285	1 044
Share of result of associates and joint ventures accounted for using the equity method		0	19
Other non-cash items		-4 387	-553
Net cash flow changes before changes in working capital		959	-21 373
Trade receivables, other receivables and deferrals		13 704	-1 361
Inventories and contracts in progress		-7 585	-31 497
Trade payables, other payables and accruals		17 717	5 415
Other short-term assets and liabilities		1 319	7 639
Changes in working capital		25 155	-19 804
Net income tax paid/received		-1 458	-1 984
Interest expense		1 067	648
Interest income		-573	-1 225
Net cash (used)/generated from operations		25 150	-43 738
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	6.2	-1 159	-2 531
Acquisition of intangible assets	6.2	-1 095	-4 099
Disposals of fixed assets		0	0
Acquisition of subsidiaries, net of cash acquired		-8 436	-182
Acquisition of third-party and equity-accounted investments		-275	0
Cash release on disposals of subsidiaries from previous years	2.3.2	0	0
Other investing cash flows		0	-3
Net cash (used)/generated from investing activities		-10 965	-6 815
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of borrowings		-3 000	0
Repayment of lease liabilities	6.10	-2 826	-3 266
Interest paid		-1 153	-428
Interest received		573	1 225
Dividends paid		0	0
(Acquisitions)/disposal of treasury of shares		-5 161	0
Other financing cash flows		-243	-741
Net cash (used)/generated from financing activities		-11 810	-3 210
Net cash and cash equivalents at beginning of the period		199 270	158 366
Net change in cash and cash equivalents		2 375	-53 763
Exchange (profits)/losses on cash and cash equivalents		687	-1 292
Net cash and cash equivalents at end of the period	6.7	202 332	103 311

1. Financial statements – basis of preparation

1.1. BASIS OF PREPARATION

These interim condensed consolidated financial statements of IBA cover the six months ended June 30, 2023 (reviewed). They have been prepared in accordance with IAS 34 "Interim Financial Reporting".

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at December 31, 2022 (audited).

These interim condensed consolidated financial statements have been approved for issue by the Board of Directors on August 28 2023.

1.1.1 Changes in accounting policies and disclosures

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2022 (audited), except for the adoption of new standards and interpretations effective as of 1 January 2023.

The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several amendments and interpretations apply for the first time in 2023, but only the amendment to IAS 12 has an impact on the interim condensed consolidated financial statements of the Group.

The standards that became effective in 2023 but that do not impact the interim condensed consolidated financial statements of the Group are the new of IFRS 17, Insurance contracts, which is mainly applicable to companies providing insurance; the amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors which primarily brings clarifications to the differences between accounting estimates and accounting policies ; and the amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies relates to the disclosure of material accounting policies, will be applied in the group's consolidated financial statements as at December 31, 2023.

Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction

In May 2021, the Board issued amendments to IAS 12, which narrow the scope of the initial recognition exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences.

The amendments have been applied to transactions that occur on or after January 1, 2023 with no material impacts on both the current period and the previous periods presented as comparatives.

1.2. TRANSLATION OF FINANCIAL STATEMENTS OF FOREIGN OPERATIONS

All monetary and non-monetary assets and liabilities (including goodwill) are translated at the closing rate. Income and expenses are translated at the rate of the transaction date (historical rate) or at an average rate for the month.

The principal exchange rates used for conversion to EUR are as follows:

	Closing rate on June 30, 2022 (reviewed)	Average rate for the 6 months period at June 30, 2022 (reviewed)	Closing rate on December 31, 2022 (audited)	Average annual rate 2022	Closing rate on June 30, 2023 (reviewed)	Average rate for the 6 months period at 2023
USD	1.0387	1.0939	1.0666	1.0541	1.0866	1.0806
SEK	10.7300	10.4743	11.1218	10.6256	11.8055	11.3271
CNY	6.9624	7.0780	7.3582	7.0768	7.8983	7.4823
INR	82.1130	83.1287	88.1710	82.5729	89.2065	88.7976
RUB	55.8782	85.4579	78.8640	73.8896	96.2571	83.4248
JPY	141.5400	134.2403	140.6600	137.9390	157.1600	145.6844
CAD	1.3425	1.3905	1.4440	1.3703	1.4415	1.4559
GBP	0.8582	0.8418	0.8869	0.8524	0.8583	0.8763
ARS	130.7442	122.4874	189.0702	155.7788	279.1190	301.8810
THB	36.7540	36.7899	36.8350	36.7956	38.4820	36.8897
SGD	1.4483	1.4920	1.4300	1.4516	1.4732	1.4434
EGP	19.6128	18.8251	26.4505	20.1267	33.5981	32.8713
TWD	31.0632	31.3642	32.8278	31.3239	33.8918	33.0008
KRW	1 351.6000	1 346.6874	1 344.0900	1 356.7687	1 435.8800	1 399.0252
GEL	3.0408	3.3009	2.8458	3.0473	2.8082	2.7695

2. Significant events and transactions

2.1. DIRECT FINANCIAL IMPACTS OF RUSSIA'S INVASION OF UKRAINE

Early 2022 Russia invaded Ukraine, leading to a myriad of economic and other sanctions against Russia, some of which also impact the functioning of IBA.

IBA has a subsidiary in Russia employing about 25 employees, whose operations have been maintained to ensure the operation and maintenance of a proton therapy center in Dimitrovgrad; the maintenance contract for this center was renewed in 2022 for another year. At the same time, the installation of the last treatment room is still ongoing.

We have analyzed the impact of these sanctions on the control of IBA SA on its Russian subsidiary from a consolidation scope perspective and access to its resources, and the indicators of asset impairment the conflict may raise:

2.1.1 Control

We have reviewed whether IBA Group still has control over its Russian subsidiary (Ion Beam Applications LLC, a 100% subsidiary of IBA SA). We have concluded that IBA Group still has control over its subsidiary based upon the following three aspects:

• ➢ IBA SA as mother company and IBA Group's management still direct the activities of the entity;
• ➢ IBA Russia continues to generate returns by continuing the maintenance activities that are not subject to any EU sanction;
• ➢ IBA SA has the power to affect these returns (i.e. to have a dividend paid): the cash flow forecast indicates an excess cash from the maintenance contract. Management believes that IBA has still the ability to obtain dividend from the Russian entity.

To assess whether IBA Russia is able to fulfill its obligations under the contract, we have considered the following:

• ➢ The cash generated by these activities is sufficient to cover all local expenses incurred in fullfilling IBA Russia's obligations under the contract;
• ➢ The stock of spare parts held on site is sufficient to provide for a normal level of maintenance service to the site for at least 12 months; in addition all supplies required for the installation contract are already on site, ready to be consumed;

Management has also made the assessment that cash can be repatriated in the form of dividend as these are not blocked under the current sanctions and therefore, IBA has access to the liquidities kept in Russia and the ability to receive a return from its Russian subsidiary.

2.1.2 Impairment of nonfinancial assets

Assets in Russia

The non-current assets of the Russian subsidiary represent RUB 45.6 million (EUR 0.5 million) and are composed of some deferred tax assets on temporary differences and some property, plant and equipment.

The current assets represent RUB 378.3 million (EUR 3.9 million) and are the following:

• ➢ Inventory which is being consumed in the maintenance project as needed, and for which obsolescence has been evaluated considering the expected future spare parts need of the site. Given that all parts are considered as recommended to be available on a maintenance site, Management did not identify excessive inventory levels for which additional write off should be recognised.
• ➢ Trade receivable: there are no large overdue balances requiring expected credit loss allowances and customers have been paying regularly, in accordance with the contractual terms
• ➢ Contract asset: there are no unusual delays to be observed on the installation contract which indicate a risk of recoverability.
• ➢ Other assets mainly relate to various tax receivables where we do not observe any significant risk
• ➢ Cash: the cash held in the Russian subsidiary is kept in RUB.

In conclusion, IBA has assessed that there is no risk of impairment on IBA Russia's assets, noting that the net assets of IBA Russia amounts to RUB -270.9 million (EUR -2.8 million).

Other assets held by IBA Group

Management has considered whether the conflict has an impact on the impairment test performed on the goodwill and whether it is an indicator of impairment for other non-financial assets.

Goodwill impairment test: the 5-year strategic plan used as a basis for the impairment test was prepared in December 2022 using the latest inflation forecasts taking into account energy and transport price increases, as well as a higher discount rate. Despite these prudent inputs, the group has sufficient headroom in the impairment test to conclude that the risk is relatively low.

The conflict was assessed as having little impact on IBA's global supply chain; the high energy prices and other materials costs were considered when applying inflation in the strategic forecasts of the group. The assessment has led to the conclusion that the current economic situation does not represent an indicator of impairment on IBA group's assets.

2.1.3 Other accounting considerations

IBA does not have cash flow hedge derivatives with respect to its activities in Russia, therefore no further consideration has been given to the application of hedge accounting.

IBA also considered whether the conflict could have an impact on its customers and their ability to pay the balances due to IBA; no significant additional credit losses were recognised in the year ended June 30, 2023 (reviewed)

2.2. MACRO-ECONOMIC ENVIRONMENT

Management has considered several factors related to the macro-economic environment and their impact on impairment of non-financial assets, expected credit losses, provisions, revenue recognition, hedge accounting, pension plans, deferred tax and going concern.

When preparing the budget for 2023 and the medium-term strategic plan, the macroeconomic conditions were taken into account when preparing the assumptions and forecast transactions. Despite a slower order intake in the first half of the year, IBA's baklog remains strong, therefore reducing uncertainty on future revenues. In addition, the cash position of the group remains solid with EUR 103.3 million gross cash (EUR 61.7 million net). Management has concluded that going concern is not at risk for the group and its entities and that the deferred tax assets are recoverable.

The most impactful macro-economic factors are inflation and high interest rates. Disclosures made in the Group's consolidated financial statements as at December 31, 2022 remain relevant and the group has revised the significant accounting estimates with the most current inflation and interest rates as at June 30, 2023, leading to no or no significant adjustments to goodwill, expected credit losses, onerous contracts provisions and assets impairment.

3. Consolidation scope and the effects of changes in the composition of the group

IBA Group consists of IBA S.A. and a total of 27 companies and associated companies in 15 countries. Of these, 23 are fully consolidated and 4 are accounted for using the equity method.

3.1. LIST OF SUBSIDIARIES

NAME	Place of incorporation	Equity ownership (%) - June 30, 2023	Equity ownership (%) - December 31, 2022
IBA Participations SRL	LLN, Belgium	100%	100%
IBA Investments SCRL	LLN, Belgium	100%	100%
Ion Beam Beijing Applications Co. Ltd.	Beijing, China	100%	100%
IBA RadioIsotopes France SAS	Lyon, France	100%	100%
IBA Dosimetry Ltd.	Schwarzenbruck, Germany	100%	100%
IBA Dosimetry America Inc.	Bartlett, USA	100%	100%
IBA Proton Therapy Inc.	Edgewood New York, USA	100%	100%
IBA Industrial Inc.	Edgewood New York, USA	100%	100%
IBA USA Inc.	Edgewood New York, USA	100%	100%
IBA Particle Therapy Ltd.	Schwarzenbruck, Germany	100%	100%
LLC Ion Beam Applications	Moscow, Russia	100%	100%
IBA Particle Therapy India Private Limited	Chennai, India	100%	100%
Ion Beam Application SRL	Buenos Aires, Argentina	100%	100%
IBA Japan KK	Tokyo, Japan	100%	100%
Ion Beam Applications Singapore PTE. Ltd	Singapore, Singapore	100%	100%
IBA Egypt LLC	Cairo, Egypt	100%	100%
Ion Beam Applications Limited	Taipei, China	100%	100%
IBA Proton Therapy Canada, Inc.	Quebec, Canada	100%	100%
IBA Georgia LLC	Tbilisi, Georgia	100%	100%
Modus Medical Devices Inc	Ontario, Canada	100%	100%
IBA Dosimetry Co Ltd.	Shanghai, China	100%	100%
Ion Beam Applications Korea, Ltd.	Gyeonggi-do, South Korea	100%	100%
Fluidomica Lda1	Cantanhede, Portugal	100%	0%

1 Subsidiary acquired in March 2023

3.2. LIST OF JOINT VENTURES AND ASSOCIATES

NAME	Country of incorporation	Equity ownership (%) 2023	Equity ownership (%) 2022
Cyclhad SAS	France	33.33%	33.33%
Normandy Hadrontherapy SAS	France	39.81%	39.81%
Normandy Hadrontherapy SARL	France	50%	50%
Pantera NV/SA	Belgium	50%	50%

IBA does not account for its share of the loss in Cyclhad SAS and Normandy Hadrontherapy SAS above the value of its investment (no commitment to participate in any potential future capital increase).

In 2022, IBA participated in the set-up of a Joint Venture called "Pantera NV/SA" together with SCK-CEN (StudieCentrum voor Kernenergie - Centre d'Étude de l'énergie Nucléaire), the Belgian nuclear research centre with an initial contribution to the share capital of EUR 0.3 million. As at June 30, 2023 (reviewed), both entities participate for 50% of the share capital. The JV will be active in the nuclear medicine, more specifically it will develop, produce and distribute the isotope Ac.225.

In July 2023, the share capital of Pantera NV/SA was increased with a further contribution from IBA for EUR 20.4 million, and the same amount contributed by SCK-CEN, maintaining a 50% - 50% ownership structure between IBA and SCK-CEN.

3.3. BUSINESS COMBINATION AND OTHER CHANGES IN THE COMPOSITION OF IBA GROUP

3.3.1 Acquisition of Companies

In a transaction closed on March 3, 2023, the Group acquired 100% of the shares of Fluidomica LD.A.

The consideration paid is EUR 0.2 million, the variable consideration is still to be estimated and will be payable in 2026 for an amount of maximum EUR 0.4 million.

3.3.2 Disposal of companies

There was no disposal during the first 6 months of 2023.

3.3.3 Invest.BW SA

On January 1st, 2023, the Group acquired 7 500 shares of Invest.BW S.A. As IBA was already holding 150 shares from a previous capital increase, IBA is now holding 25% of the issued shares of Invest.BW SA.

InvestBW is providing financing and support to entrepreneurs in Walloon Brabant, as a venture capital partner InvestBW is an investment fund representing equity and subordinated or convertible loan to entrepreneurs.

Although it is presumed that, with 25% of the shares, IBA has a significant influence over InvestBW, we have rebutted the significant influence on the basis that IBA currently has made the choice to not participate in the decision making process of InvestBW. The investment is accounted for as an equity investment financial asset under IFRS9, at fair value with gains and losses recorgnised in Other Comprehensive Income. Given that the shares were recently acquired, the price paid is considered as the fair value of the investment.

3.3.4 HIL Applied Medical Ltd

In 2016, the Group invested USD 2.0 million (EUR 1.8 million) in HIL Applied Medical Ltd, a private Israeli developer of laser-based proton therapy systems which is developing a novel, patented approach to particle acceleration and delivery, combining nano-technology with ultrahigh-intensity lasers and ultra-fast magnets.

As at December 31, 2022, IBA has recorded a value increase of the investment by EUR 1.0 million against the Group's Statement of Other Comprehensive Income, based on a valuation exercise using the DCF method and future cash flow forecasts. In July 2023, the investee has formally informed the stakeholder of the financial difficulties encountered and the start of a voluntary dissolution. As a result, the value of the investment has been decreased to zero (against the group's Statement of Other Comprehensive Income).

4. Critical accounting estimates and judgments

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldomly equal the related actual results. We present below estimates and assumptions that could cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4.1. INCOME TAX – DEFERRED TAX

The Group recognizes deferred tax assets on unused losses carried forward to the extent that the taxable profit against which these assets are available can be used. The amounts recognized in the financial position are prudent estimates made on the basis of recent financial plans approved by the Board of Directors and depend on certain judgments with respect to the amounts and location of the future taxable profits of the Group's subsidiaries and parent company.

In 2022, a deferred tax asset of EUR 10.9 million was recognised on the tax losses carried forward in Belgium which was previously not recognised and has been maintained in the consolidated financial position as at June 30, 2023 (unaudited) as no updated financial plan has been prepared in the 6 months period. The deferred tax asset will be fully reassessed at the end of each financial year when updated financial plans are available and approved.

As at June 30, 2023 (reviewed), the Group had accumulated net operating losses of EUR 193.2 million (June 2022: EUR 163,9 million) usable to offset future profits taxable mainly in Belgium and Germany and temporary differences for EUR 58.4 million (June 2022: 41,3 million) mainly originating from the United States, Belgium, China, Germany, India and Russia. The Group recognized deferred tax assets relating to tax losses carried forward for EUR 15.8 million with the view using these in future years and EUR 2.5 million as deferred tax assets and liabilities for temporary differences.

The negative result of the Group in June 30, 2023 (reviewed) does not significantly affect the existing budgeted plan of German entities which remained in profit for the period and the remaining planned profit for the future years in the Belgian entity remained sufficient to support the deferred tax asset recognised.

A net deferred tax asset is recognized on these entities on usable tax losses carried forward and there is no indicator that would trigger the reassessment of the deferred tax assets.

4.2. REVENUE RECOGNITION

IFRS 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers.

The Group is in the business of providing equipment and installation (reported as "Sales"), and operation and maintenance services (reported as "Services"). In applying IFRS 15, IBA makes the following significant judgements and estimates.

(i) Equipment and installation considered as one performance obligation

MID YEAR REPORT 2023// 15 As indicated in the accounting policies section, IBA assessed that its commitment under the equipment and the installation service is to transfer a combined item to which the equipment and the installation are inputs but these elements do not represent separate performance obligations.

(ii) Estimating the progress under the equipment and installation services contract

The Group recognizes revenue over time under such contracts and the progress is measured by reference to the costs incurred when comparing it to the costs to complete. The costs to complete is a significant estimate because it determines the progress made since the inception of the contract and IBA recognizes the revenue of the contract based on the progress estimated in percentage.

(iii) Performance obligations in the licensing contract with CGN and the performance bond

In August 2020, the group signed a technology license agreement with CGN Dasheng Electron Accelerator Technology Co., Ltd for the provision of goods and services related to its Multi-Room Proton Therapy System. The contract applies to the mainland territory of the People's Republic of China.

Given the contract contains an element of variable consideration in the form of an unconditional and irrevocable performance bond the customer can draw upon for an inital maximum value of EUR 15 million (reduced to EUR 10 million in December 2021 and to EUR 5 million in December 2022), management decided not to recognize the full revenue of the license, given the level of uncertainty linked to this type of sale (unique in its kind for IBA). Instead, the remaining amount of variable consideration that is highly sensitive to factors outside the entity's influence is recognized as a refund liability until the uncertainty associated with the variable consideration is resolved.

In December 2021, both parties have agreed to reduce the performance bond to EUR 10 million and to further reduce it to EUR 5 million in December 2022 if un-used. As a result, IBA Group has released EUR 5 million of the variable consideration in its Income Statement in both years.

The remaining uncertainty is expected to be resolved at the expiration date of the performance bond (at the earliest per the shipment of the equipment components or 48 months from the effective date of the agreement (August 25, 2024)).

4.3. ESTIMATING THE VALUE IN USE OF INTANGIBLE AND TANGIBLE FIXED ASSETS

When management considers that there is a risk of impairment, the recoverable amounts of tangible and intangible fixed assets are determined on a "value in use" basis. Value in use is determined on the basis of cash-flows coming from IBA's most recent business plans, as approved by the Board of Directors. These plans incorporate various assumptions made by management and approved by the Board as to

how the business, profit margins, and investments will evolve.

The loss of the current period does not significantly affect the existing budgeted plan and the subsequent quarterly reforecasts and there is therefore no indicator that would trigger an impairment test as of June 30, 2023 (reviewed).

4.4. DETERMINING THE LEASE TERM OF CONTRACTS WITH RENEWAL AND TERMINATION OPTIONS – GROUP AS LESSEE

The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Group has several lease contracts that include extension and termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to

exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

4.5. LEASES – ESTIMATING THE INCREMENTAL BORROWING RATE

The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group 'would have to pay', which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary's functional currency).

The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entityspecific estimates (such as the subsidiary's stand-alone credit rating).

4.6. FINANCIAL ASSETS AND LIABILITIES – ADDITIONAL INFORMATION

The assets and liabilities of the Group are valued as follows:

(EUR 000)		December 31, 2022 (audited)		June 30, 2023 (reviewed)
FINANCIAL ASSETS	Net carrying value	Fair value	Net carrying value	Fair value
Trade receivables	111 649	111 649	93 728	93 728
Other long-term receivables	35 184	35 184	35 581	35 581
Non-trade receivables and advance
payments	40 285	40 285	55 461	55 461
Other short-term receivables	49 607	49 607	32 447	32 447
Other investments in shares	3 805	3 805	2 606	2 606
Cash and cash equivalents	158 366	158 366	103 311	103 311
Hedging derivative products	202	202	1 730	1 730
TOTAL	399 098	399 098	324 864	324 864
FINANCIAL LIABILITIES	Net carrying value	Fair value	Net carrying value	Fair value
Bank and other borrowings	14 381	15 668	14 482	15 504
Lease liabilities	26 486	28 127	27 102	29 439
Trade payables	65 559	65 559	65 723	65 723
Hedging derivative products	4 128	4 128	1 587	1 587
Other long-term liabilities	5 862	5 862	4 691	4 691
Other short-term liabilities	46 925	46 925	27 598	27 598
TOTAL	163 341	166 269	141 183	144 543

At December 31, 2022 (audited) and June 30, 2023 (reviewed), the net carrying value of these financial assets and liabilities did not differ significantly from their fair value.

The heading "Hedging derivative products" includes the fair value of forward exchange contracts and currency swaps.

The Group may acquire non-controlling interests in other companies, depending on the evolution of its strategy. Equity investments included in ''Other investments'' relate primarily to Scandidos A.B. valued at fair value at Level 1 and InvestBW valued at fair value at Level 2.

4.7. CATEGORIES OF FINANCIAL INSTRUMENTS

Fair value is the price that would be received (to sell an asset) or paid (to transfer a liability) in an orderly transaction between market participants at the measurement date. In conformity with IFRS 9 all derivatives are recognized at fair value in the financial position.

The fair value of derivative financial instruments is either the quoted market price or is calculated using pricing models taking into account current market rates. Fair values of hedging instruments are determined by valuation techniques widely used in financial markets and are provided by reliable financial information sources. Fair values are based on the trade dates of the underlying transactions.

The fair value of these instruments generally reflects the estimated amount that IBA would receive on the settlement of favorable contracts or be required to pay to terminate unfavorable contracts at the balance sheet date, and thereby takes into account any unrealized gains or losses on open contracts.

As required by IFRS 13 Fair value measurement, the following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

• ➢ Level 1: fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
• ➢ Level 2: fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• ➢ Level 3: fair value measurements are those derived from valuation techniques for which the lowest level of input that is significant to the fair value measurement is unobservable.

During the 6 first months of the year, there was no transfer between the various categories for the financial instruments existing as of June 30, 2023 (reviewed).

New financial instruments were acquired and are classified in level 2 such as derivatives as well as shares in InvestBW acquired in January 2023, for which the consideration paid remained a recent transaction and is an observable input for fair value determination. The financial asset related to the group's investment in HIL Applied Medical Ltd measured at fair value at level 3 has been reduced to zero as described in Note 3.3.4.

(EUR 000)	Level 1	Level 2	Level 3	December 31, 2022 (audited)
Forward foreign exchange contracts		3		3
Foreign exchange rate swaps		134		134
Derivative hedge-accounted financial assets		137		137
Forward foreign exchange contracts		39		39
Foreign exchange rate swaps		26		26
Derivatives assets at fair value through the income
statement		65		65
Equity instruments at fair value	995	0	2 753	3 748
Forward foreign exchange contracts		1 604		1 604
Foreign exchange rate swaps		927		927
Derivative hedge-accounted financial liabilities		2 531		2 531
Forward foreign exchange contracts		1 412		1 412
Foreign exchange rate swaps		185		185
Derivatives liabilities at fair value through the income statement		1 597		1 597

(EUR 000)	Level 1	Level 2	Level 3	June 30, 2023 (reviewed)
Forward foreign exchange contracts		879		879
Foreign exchange rate swaps		439		439
Derivative hedge-accounted financial assets		1 318		1 318
Forward foreign exchange contracts		409		409
Foreign exchange rate swaps		3		3
Derivatives assets at fair value through the income
statement		412		412
Equity instruments at fair value	1 011	1 559	0	2 570
Forward foreign exchange contracts		858		858
Foreign exchange rate swaps		60		60
Derivative hedge-accounted financial liabilities		918		918
Forward foreign exchange contracts		617		617
Foreign exchange rate swaps		52		52
Derivatives liabilities at fair value through the income
statement		669		669

The net movement on cash-flow hedges relates to hedges that have been concluded in order to safeguard future revenues from currency fluctuations and results in a high cash flow hedge impact on the statement of Other Operating Income. The net fair value of these

assets and liabilities per the end of June 2023 has increased primarily as a result of hedges in CNY (for 3 projects in the People's Republic of China) and to a lesser extent USD, two currencies which over the past 6 months weakened against the EUR.

4.8. EXPECTED CREDIT LOSS

As at June 30, 2023 (reviewed), the allowance for expected credit losses on trade receivables amounts to EUR 3.5 million (December 31, 2022: EUR 3.4 millions).

To calculate the expected credit losses, the group applies the overall matrix described in the

5. Operating segments

IBA identified its Management Team as its CODM (Chief Operating Decision Maker) because this is the committee that decides how to allocate resources and assesses performance of the components of the Group.

On the basis of its internal financial reports to the Board of Directors and given the Group's accounting policies. The credit loss is then reviewed in detail to take into consideration other customer specific factors such as renegotiation, customer refinancing, and guarantees received.

primary source of risk and profitability, IBA has identified two levels of operating information:

• ➢ Operating segment-based information (Level 1);
• ➢ Entity wide disclosure information (Level 2) not presented in the interim condensed consolidated financial statements.

5.1. OPERATING SEGMENTS

The operating segments are defined based on the information provided to the Management

MID YEAR REPORT 2023// 19 Team. On the basis of its internal financial reports and given the Group's primary source of risk and profitability, IBA has identified two operating segments. In accordance with IFRS 8 Operating segments, the business segments on which segment information is based are (1) Proton therapy and other accelerators and (2) Dosimetry.

Distinct financial information is available for these reporting segments and is used by the Management Team to make decisions about resources to be allocated to the segment and assess its performance.

▪ Proton therapy and other accelerators: This segment constitutes the technological basis of the Group's many businesses and encompasses development, manufacturing and services associated with medical and industrial particle accelerators and proton

therapy systems as well as proton therapy licensing.

▪ Dosimetry: this segment includes the activities that offer a full range of innovative high-quality solutions and services that maximize efficiency and minimize errors in radiation therapy and medical imaging Quality Assurance and calibration procedures.

The segment results, assets and liabilities include the items directly related to a segment, as well as those that may be allocated on a reasonable basis.

The segment investment expenses include the total cost of investments incurred during the period of acquisition of tangible and intangible assets investments, except goodwill.

(EUR 000) Six months ended June 30, 2022 (reviewed)	Total segments	Inter-segment transactions eliminated	IBA Group	Proton Therapy and Other Accelerators	Dosimetry
Sales of equipment and licences	95 826	836	94 990	71 110	23 880
Sales of services	65 042	0	65 042	62 026	3 016
Total sales	160 868	836	160 032	133 136	26 896
Cost of sales and services (-)	-98 291	-836	-97 455	-82 613	-14 842
Operating expenses (-)	-58 013	0	-58 013	-47 000	-11 013
Other operating expenses	-2 382	0	-2 382	-2 333	-49
Segment result (EBIT)	2 182	0	2 182	1 190	992
Financial income/(expenses)	-1 885	0	-1 885	-2 115	230
Share of profit/(loss) of companies consolidated using the equity method	0	0	0	0	0
Result before taxes	297	0	297	-925	1 222
Tax income/(expenses)	-2 014	0	-2 014	-1 947	-67
RESULT FOR THE PERIOD	-1 717	0	-1 717	-2 872	1 155
REBITDA	14 065	0	14 065	12 211	1 854

5.1.1	Income statement

(EUR 000) Six months ended June 30, 2023 (reviewed)	Total segments	Inter-segment transactions eliminated	IBA Group	Proton Therapy and Other Accelerators	Dosimetry
Sales	96 429	2 751	93 678	64 010	29 668
Services	75 740	0	75 740	72 426	3 314
Total sales	172 169	2 751	169 418	136 436	32 982
Cost of sales and services (-)	-127 131	-2 751	-124 380	-106 815	-17 565
Operating expenses (-)	-65 334	0	-65 334	-53 076	-12 258
Other operating expenses	-462	0	-462	-458	-4
Segment result (EBIT)	-20 758	0	-20 758	-23 913	3 155
Financial income/(expenses)	-1 879	0	-1 879	-1 722	-157
Share of profit/(loss) of companies consolidated
using the equity method	-19	0	-19	-19	0
Result before taxes	-22 656	0	-22 656	-25 654	2 998
Tax income/(expenses)	-4 607	0	-4 607	-3 853	-754
RESULT FOR THE PERIOD	-27 263	0	-27 263	-29 507	2 244
REBITDA	-13 859	0	-13 859	-18 486	4 627

For the year-ended June 30, 2023 (reviewed), the Group revenue was EUR 169.4 million, a 5.9% increase from 2022 (2022: EUR 160.0 million), primarily composed of:

• ➢ revenues for the Proton Therapy and Other Accelerators segment of EUR 136.4 million representing a slight increase of 2.48% from 2022 (2022: 133.1 EUR million):
  • the revenue of Proton Therapy activities amounts to EUR 95.1 million (2022: EUR 101.3 million), showing a decrease of 6.2% largely driven by delays at the customer sites and cost at completion increases which is slowering the progress of the percentage of completion and related revenue recognition
  • the revenue of Other Accelerators activities amounts to EUR 41.4 million (2022: EUR 31.8 million), showing a significant increase of 30.1% mainly driven by a strong order intake in Industrial equipments and upgrades
• ➢ revenues for the Dosimetry segment remained strong with a total of EUR 33.0 million, a significant increase of 22.6% from 2022 (2022: EUR 26.9 million) representing both an organic growth and the growth from the acquisition of Modus in 2022.

For the year-ended June 30, 2023 (reviewed), the Group gross margin (26.6%) degraded compared to 2022 (39.1%); the latter was positively impacted by Rutherford's bankruptcy.

For the year-ended June 30, 2023 (reviewed), Group operating expenses were EUR 65.3 million, a 12.6% increase from 2022 (2022: EUR 58.0 million). These expenses include General and Administrative expenses for EUR 27.1 million, Sales and Marketing expenses for EUR 14.0 million and Research and Development net of research credit for EUR 24.2 million. Despite efficient control of overheads costs, careful spending and IBA's cost control measures, the increase is to be observed on all three types of expenses which reflects both the conditions of the general macro-economic environment (primarily the high inflation at all levels) as well as a growing support infrastructure, gearing the Group up for the future expected growth. The cost increases also demonstrate the strategic

efforts that IBA is making on both operating segments to maintain its technological leadership in all business lines.

For the year-ended June 30, 2023 (reviewed), the other operating result (loss) was EUR -0.5 million (2022: EUR -2.4 million) and includes the costs incurred for the Stock Option plan. The other operating result (cost) of 2022 was also impacted by a one-off past service cost of EUR 1.3 million related to the pension plan transfer and loss on bad debt.

The REBIT of both segments was impacted by high inflationary environment, as well as increased investment into R&D, infrastructure, digital technologies and sustainability to maintain IBA's leading offering and invest in its future growth.

For the year-ended June 30, 2023 (reviewed), the financial result (expenses) was EUR -1.9 million, in line with 2022 and primarily composed of:

• ➢ interest paid on debts and lease liabilities for EUR -0.6 million and foreing exchange gains and losses for EUR -3.4 million and
• ➢ Partially compensated by interest revenues on bank accounts and investment bonds in relation to proton therapy projects for EUR 1.0 million and by the net change in fair value of derivatives for EUR 1.4 million,

As at June 30, 2023 (reviewed), there were little costs related to the equity-accounted entities. There were limited activities in the newly set up entity (PanTera SA/NV); the book value of Cyclhad SAS and Normandy Hadrontherapy SAS had previously been reduced to zero. IBA does not account for its share of the loss in these entities above the value of its investment as the Group has no commitment to participate in any potential future capital increase of these two affiliates.

As at June 30, 2023 (reviewed), the Group recognises a tax expense for an amount of EUR -4.6 million representing 20.3% of the loss before tax. In the Proton Therapy and Other Accelerators segment, the tax charge results from the progress on installation projects and the recognition of the related revenue and margin in some countries with a relatively high tax rate.

5.1.2 Financial position

(EUR 000) Six months ended December 31, 2022 (audited)	Proton Therapy and Other Accelerators	Dosimetry	Group
Non-current assets	99 932	23 218	123 150
Current assets	478 157	22 319	500 476
Segment assets	578 089	45 537	623 626
Investments accounted for using the equity method	273	0	273
TOTAL ASSETS	578 362	45 537	623 899
Non-current liabilities	43 541	3 235	46 776
Current liabilities	449 700	11 472	461 172
Segment liabilities	493 241	14 707	507 948
TOTAL LIABILITIES	493 241	14 707	507 948
Other segment information
Six months ended June 30, 2022 (reviewed)
Capital expenditure - Intangible assets and "Property, Plant and Equipment"	1 809	445	2 254
Capital expenditure - Right-of-use assets	1 110	258	1 368
Depreciation of property, plant and equipment	3 548	759	4 307
Amortization and impairment of intangible assets	629	103	732
Salary related expenses	78 738	9 015	87 753
Non-cash expenses/(income)	-4 172	-82	-4 254
Headcount at year-end (EFT)	1 422	246	1 668

(EUR 000) Six months ended June 30, 2023 (reviewed)	Proton Therapy and Other Accelerators	Dosimetry	Group
Non-current assets	103 695	23 289	126 984
Current assets	451 563	31 440	483 003
Segment assets	555 258	54 729	609 987
Investments accounted for using the equity method	254	0	254
TOTAL ASSETS	555 512	54 729	610 241
Non-current liabilities	41 320	3 973	45 293
Current liabilities	462 992	15 052	478 044
Segment liabilities	504 312	19 025	523 337
TOTAL LIABILITIES	504 312	19 025	523 337
Other segment information Six months ended June 30, 2023 (reviewed)
Capital expenditure - Intangible assets and "Property, Plant and Equipment"	6 401	239	6 640
Capital expenditure - Right-of-use assets	2 669	1 427	4 096
Depreciation of property, plant and equipment	3 709	859	4 568
Amortization and impairment of intangible assets	524	332	856
Salary expenses	90 278	9 828	100 106
Non-cash expenses/(income)	-86	349	263
Headcount at year-end (EFT)	1 601	244	1 845

6. Earnings per share

6.1. BASIC EARNINGS PER SHARE

Basic earnings are calculated by dividing the net profit attributable to the Company shareholders by the weighted average number of ordinary shares outstanding during the period. The weighted average number of ordinary shares excludes shares purchased- by the Company and held as treasury shares.

BASIC EARNINGS PER SHARE	June 30, 2022 (reviewed)	June 30, 2023 (reviewed)
Earnings attributable to parent equity holders (EUR 000)	-1 717	-27 263
Weighted average number of ordinary shares	29 175 732	29 105 806
Basic earnings per share (EUR per share)	-0.0589	-0.9367

6.2. DILUTED EARNINGS PER SHARE

Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding for the effects of conversion of all dilutive potential ordinary shares.

In 2022 and 2023, the Company had only one category of dilutive potential on ordinary share: stock options.

The calculation is performed for the stock options to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding stock options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the stock options.

DILUTED EARNINGS PER SHARE	June 30, 2022 (reviewed)	June 30, 2023 (reviewed)
Weighted average number of ordinary shares	29 175 732	29 105 806
Weighted average number of stock options	1 110 827	1 123 015
Average share price over period	16.6	16.2
Dilution effect from weighted number of stock options	1 006 429	1 051 056
Weighted average number of ordinary shares for diluted earnings per share	30 182 161	30 156 862
Earnings attributable to parent equity holders (EUR 000)	-1 717	-27 263
Diluted earnings per share (EUR per share)	-0.0589	-0.9367

In compliance with IAS33, which stipulates that the diluted earnings per share does not take into account assumptions for conversion, financial year, or other issuing of potential ordinary shares which may have an anti-dilutive effect on the earnings per share (shares whose conversion involves a decrease in the loss per share).

7.1. SEASONALITY OR CYCLICALITY OF INTERIM OPERATIONS

IBA's business is not subject to any seasonal or cyclical effect.

7.2. CAPITAL EXPENDITURE AND COMMITMENTS

(EUR 000)	Property, plant and
Six months ended June 30, 2022 (reviewed)	equipment	Right of use	Intangible	Goodwill
Net carrying amount at January 1, 2022	19 081	29 566	3 790	3 821
Additions	1 159	1 368	1 095	0
Disposals	-6	-153	0	0
Currency translation difference	143	219	6	0
Depreciation/amortization and impairment	-1 683	-2 624	-732	0
Net assets acquired in business combinations	9	0	639	8 277
Net carrying amount at June 30, 2022 (reviewed)	18 703	28 376	4 798	12 098

(EUR 000)	Property, plant and
Six months ended June 30, 2023 (reviewed)	equipment	Right of use	Intangible	Goodwill
Net carrying amount at January 1, 2023	18 952	27 116	7 578	10 262
Additions	2 531	4 096	4 099	0
Disposals	-12	-49	0	0
Transferts	-655	0	655	0
Currency translation difference	-53	-60	-2	11
Depreciation/amortization and impairment	-1 536	-3 033	-855	0
Net assets acquired in business combinations	16	0	0	21
Net carrying amount at June 30, 2023 (reviewed)	19 243	28 070	11 475	10 294

In 2023, the group mainly invested in intangible assets with further costs (EUR 2.1 million) capitalised related to the compliance effort to renew a licence to sell medical devices in Europe in line with the new European Medical Device Regulation ("Medical Device Regulation"). The additions to Intangible also include further development costs in the configuration of the "Product Life Management" software used in R&D for EUR 1.3 million).

The largest additions to Right of Use assets relate to the lease of new vehicles for EUR 2.1 million and to new and renewed leases for buildings (EUR 2.0 million), primarily in Germany.

The loss for the 6-month period ending June 30, 2023 (reviewed) does not significantly affect the existing budgeted plan and the subsequent quarterly reforecasts. No impairment losses are therefore recognized on property, plant and equipment or intangible assets in the 2023 interim condensed financial statements.

7.3. OTHER LONG-TERM ASSETS

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Long-term receivables on contracts in progress	436	436
Research tax credit	11 738	13 233
Subordinated loan to NHA	1 520	1 520
Subordinated bond to proton therapy customers	4 688	4 601
Financial notes granted to proton therapy customers	4 748	4 115
Loan to shareholders (Note 6.18.3)	5 769	5 769
Long term deposits	321	345
Customers retainer	970	960
Long-term financing for a building to a proton therapy	2 583	2 312
customer Customers with payment terms more than one year	1 988	1 976
Other assets	423	314
TOTAL	35 184	35 581

The other long-term assets remained in line with the balance as at December 31, 2022 (audited).

The only material fluctuations are an increase of the research tax credit which represents the tax credit to be obtained on the expenditures in research and development for the current 6 months period for EUR 1.5 million offset by reclassifications of specific amounts due within one year to current assets.

7.4. INVENTORIES

Work in progress relates to production of inventory for which a customer has not yet been secured, while contracts in progress (note 7.5) relate to production for specific customers in performance of a signed contract.

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Raw materials and supplies	101 793	133 931
Finished products	3 219	3 688
Work in progress	8 285	9 196
Write-off of inventories (-)	-12 280	-12 996
Inventories and contracts in progress	101 017	133 819

7.5. CONTRACT ASSETS AND CONTRACT LIABILITIES

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Costs to date and recognized revenue	383 734	431 400
Less : progress billings	-344 343	-375 653
Contracts assets	39 391	55 747
Contract liabilities	-296 219	-306 509
Net amounts on contracts in progress	-256 828	-250 762

7.6. OTHER RECEIVABLES

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Non-trade receivables	11 652	15 078
Advance payments	28 633	40 384
Prepaid expenses	5 724	6 920
Accrued income related to maintenance contracts	16 219	15 323
Accrued income other	362	290
Current income tax receivables	3 392	2 452
Cash with restriction more than 3 months	7 260	0
Prepaid share investments	1 538	0
Non highly liquid short term deposits	11 138	10 372
Other current receivables	3 975	4 010
TOTAL	89 893	94 829

MID YEAR REPORT 2023// 25

The other receivables have increased compared to December 31, 2022 (audited). The main drivers of this increase are the increase of advance payments to suppliers for EUR 11.8 million and the increase of VAT to be received for EUR 3.7 million (reported under "Non-trade receivables" in the table above). The increase is partially offset by the EUR 7.3 million cash

repatriated from IBA Russia which was temporarily blocked by the Belgian authorities and released to IBA's bank account early 2023 and by the reclassification of the prepaid investment in shares for EUR 1.6 million to Other financial assets as the ownership of these shares crystalized on January 1st, 2023.

7.7. CASH AND CASH EQUIVALENTS

For the purpose of the interim condensed consolidated cash flow statement, cash and cash equivalents are comprised of the following:

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Bank balances and cash	108 366	72 764
Short-term bank deposits	50 000	30 546
CASH AND CASH EQUIVALENTS	158 366	103 310

The short-term deposits are highly liquids investment, primarily on-demand deposits and have a maturity less than 3 months.

7.8. ORDINARY SHARES, SHARE PREMIUM AND TREASURY SHARES

	Number of shares	Issued capital stock (EUR 000)	Share Premium (EUR 000)	Treasury shares (EUR 000)	Total (EUR 000)
Balance as at December 31, 2022 (audited)	30 282 218	42 502	43 478	-18 328	67 652
Stock options exercised	0	0	0	0	0
Capital increases (other)	0	0	0	0	0
Purchase of treasury shares	0	0	0	0	0
Sale of treasury shares	0	0	0	0	0
Balance as at June 30, 2023 (reviewed)	30 282 218	42 502	43 478	-18 328	67 652

During the 6-month period, no treasury shares were acquired nor sold.

7.9. MOVEMENT ON BANK AND OTHER BORROWINGS

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Non-current	10 647	10 748
Current	3 734	3 734
Total	14 381	14 482
Opening amount	39 671	14 381
Discount and amortised costs interest	-556	101
accretion Repayment of borrowings	-24 734	0
Closing balance	14 381	14 482

As at June 30, 2023 (reviewed), the bank and other borrowings include unsecured subordinated bonds from S.R.I.W. for a total of EUR 10.6 million (EUR 10.5 million as at December 31, 2022 (audited)) and an unsecured subordinated bond from S.F.P.I. for EUR 3.9 million (EUR 3.9 million as at December 31, 2022 (audited)) as well as unused revolving (short term) credit facilities (unchanged from December 31, 2022 (audited)), and unused overdraft facilities in China. In 2022, IBA fully repaid a term loan of EUR 21 million.

S.R.I.W. and S.F.P.I. subordinated bonds

S.R.I.W. and S.F.P.I. are two Belgian public investment funds (respectively, at regional and federal level).

Following the terms of the S.R.I.W. and S.F.P.I. bond agreements, the Group agreed to comply with a financial covenant relating to the IBA Group level of equity, which was met as at June 30, 2023 (reviewed).

Available bank credit facilities

As at June 30, 2023 (reviewed), the Group has at its disposal credit facilities amounting to EUR Utilized credit facilities are as follows:

55.6 million of which 25.9% are used (47.8% in 2022).

The bank facilities at IBA SA level include a EUR 37 million revolving credit facility (maturing in December 2024).

The financial covenants applying to these syndicated facilities consist of (a) a maximum net leverage ratio (calculated as the consolidated net senior indebtedness divided by the consolidated REBITDA over the last 12 months) and (b) a minimum corrected equity level (calculated as the sum of the consolidated equity - with certain reclassifications - and the subordinated indebtedness). Both covenants were complied with as at June 30, 2023 (reviewed).

In China, the CNY 35 million overdraft facility (borrower: Ion Beam Applications Co. Ltd) was maintained for the same amount (undrawn as of June 30, 2023 (reviewed)).

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
FLOATING RATE
Repayment within one year	0	0
Repayment beyond one year	0	0
TOTAL FLOATING RATE	0	0
FIXED RATE
Repayment within one year	3 734	3 734
Repayment beyond one year	10 647	10 748
TOTAL FIXED	14 381	14 482
RATE
TOTAL	14 381	14 482

Unutilized credit facilities are as follows:

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
FLOATING RATE
Repayment within one year	0	0
Repayment beyond one year	41 757	41 431
TOTAL FLOATING RATE	41 757	41 431
FIXED RATE
Repayment within one year	0	0
Repayment beyond one year	0	0
TOTAL FIXED	0	0
RATE
TOTAL	41 757	41 431

7.10. LEASE LIABILITIES

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Non-current	20 811	21 279
Current	5 675	5 823
TOTAL	26 486	27 102

Changes in financial lease liabilities as follows:

(EUR 000)	Building	Vehicles	Machinery	Hardware	Total
As at January 1, 2022	23 705	5 342	27	231	29 305
Additions	1 673	1 628	26	129	3 456
Accretion of interest	644	118	0	12	774
Disposal	-1	-84	-3	-100	-188
Payments	-4 413	-2 509	-25	-103	-7 050
Currency translation difference	185	0	0	4	189
As at December 31, 2022 (audited)	21 793	4 495	25	173	26 486
As at January 1, 2023	21 793	4 495	25	173	26 486
Additions	1 951	2 074	9	0	4 034
Accretion of interest	191	83	0	5	279
Disposal	0	-50	0	0	-50
Payments	-2 057	-1 463	-8	-50	-3 578
Currency translation
difference	-64	-3	-1	-1	-69
As at June 30, 2023 (reviewed)	21 814	5 136	25	127	27 102

7.11. PROVISIONS

				Defined employee	Other employee
(EUR 000)	Environment	Warranties	Litigation	benefits	benefits	Other	Total
As at January 1, 2023	118	6 243	140	2 726	732	5 167	15 126
Additions (+)	0	1 509	1	6	170	143	1 829
Write-backs (-)	0	-1 229	0	-102	0	-65	-1 396
Utilizations (-)	0	-542	0	0	-15	-490	-1 047
Reclassifications	0	0	0	0	0	0	0
Actuarial (gains)/losses generated during the
year	0	0	0	97	0	0	97
Currency translation difference	0	-25	0	0	-35	-72	-132
Total movement	0	-287	1	1	120	-484	-649
As at June 30, 2023 (reviewed)	118	5 956	141	2 727	852	4 683	14 477

The provisions for warranties have decreased as the utilisations (EUR -0.6 million) and reversals (EUR -1.3 million) in relation to Proton therapy and other accelerators were higher than the additional provisions made during the period (EUR 1.5 million).

The other provisions mainly include, similar to the prior period, provisions for loss-making contracts.

7.12. OTHER PAYABLES AND ACCRUALS

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Payroll debts	28 653	34 602
Accrued charges	2 302	1 756
Accrued interest	0	192
charges Deferred income related to maintenance contracts	17 715	19 222
Capital grants	2 912	2 478
Non-trade payables	16 217	11 582
Unpaid dividend	0	6 126
Refund Liability on the contract with CGN	5 000	5 000
Other	2 779	2 943
TOTAL	75 578	83 901

The "Other" payable at June 30, 2022 (unaudited) includes advances of EUR 1.3 million received from the Walloon Region of Belgium and other miscellaneous payables amounting to EUR 1.6 million.

The deferred income related to maintenance contract represents the periodic invoicing to customers for revenue that is recognised over time on a linear basis. The movement represents the normal billing profile of these contracts.

The increase in social debt relates to some bonus and variable remuneration components from 2022 for which the payment was not yet triggered at the end of the reporting period (the majority is settled in July 2023) as well as the accrued 13th month expense which is settled fully by December 31 every year.

7.13. OTHER OPERATING EXPENSES

The other operating expenses include a cost of the share-based payments for the option plans

issued in 2020 and 2021 for a total amount of EUR 0.5 million.

7.14. INCOME TAX

The tax charge for the 6-months period can be broken down as follows:

(EUR 000)	June 30, 2022 (reviewed)	June 30, 2023 (reviewed)
Current taxes	-2 299	-3 563
Deferred taxes	285	-1 044
TOTAL	-2 014	-4 607

Despite the loss for the period at the group level, the Current tax expense has increased due to the increase of taxable profit in some countries where IBA operates as well as tax expenses that were not foreseen nor accrued at the end of fiscal year 2022. The Deferred tax expense relates to the recognition of additional deferred tax on temporary differences on the accounting treatment of revenue recognition of the Operation and Maintenance contracts, as well as the utilisation of net operating losses available in Germany.

7.15. LITIGATION AND CONTINGENT ASSETS

The Group is not involved in any significant litigation currently. The potential risks connected to minor proceedings are deemed to be either groundless or insignificant, or when the risk of payment of potential damages seems actual, are either adequately covered by provisions or insurance policies.

The Group has filed an insurance claim on faulty parts. As the claim does not meet all the criteria to be recognised as an asset on the balance sheet, the group presents this as a contingent asset. The best estimate of Management for the insurance indemnity to be received is EUR 0.5 million.

7.16. EMPLOYEE BENEFITS

For more information on employee benefits see annual report note 27 as movements for the six months period ending June 2023 in employee benefits are not significant.

7.17. PAID AND PROPOSED DIVIDENDS

A dividend of EUR 0.21 per share was approved at the Ordinary General Meeting of June 14, 2023.

This dividend was paid in July 2023.

7.18. RELATED PARTY TRANSACTIONS

7.18.1 CONSOLIDATED COMPANIES

A list of subsidiaries and equity-accounted associates is provided in Note 2.

7.18.2 TRANSACTIONS WITH AFFILIATED COMPANIES

The main transactions completed with related parties (companies using the equity accounting method) are as follows:

(EUR 000)	June 30, 2022 (reviewed)	June 30, 2023 (reviewed)
ASSETS
Receivables
Long-term receivables	1 520	1 520
Trade and other receivables	443	1 743
TOTAL RECEIVABLES	1 963	3 263
INCOME STATEMENT
Sales	674	2 865
Financial income	0	0
TOTAL INCOME STATEMENT	674	2865

7.18.3 SHAREHOLDER RELATIONSHIPS

The following table shows IBA shareholders at June 30, 2023 (reviewed)

	Number of shares	%
Sustainable Anchorage SRL	6 204 668	20.49%
IBA Investments SCRL	51 973	0.17%
IBA SA	1 100 781	3.64%
IB Anchorage	348 530	1.15%
UCL	426 885	1.41%
Sopartec SA	180 000	0.59%
SRIW SA	715 491	2.36%
SFPI SA	58 200	0.19%
Belfius Insurance SA	1 189 196	3.93%
FUP Institute of RadioElements	1 423 271	4.70%
Paladin Asset Mgmt	768 765	2.54%
BlackRock, Inc.	407 194	1.34%
Norges Bank Investment Management	1 133 108	3.74%
Kempen Capital Management NV	875 388	2.89%
BNP Paris	528 425	1.75%
Public	14 870 343	49.11%
TOTAL	30 282 218	100.00%

The Group had the following transactions with its shareholders:

(EUR 000)	June 30, 2022 (reviewed)	June 30, 2023 (reviewed)
ASSETS
Receivables
Long-term receivables	5 807	5 769
Trade and other receivables	65	144
Impairment of receivables	0	0
TOTAL RECEIVABLES	5 872	5 913
LIABILITIES
Payables
Bank and other borrowings	18 671	14 482
Trade and other payables	0	0
TOTAL PAYABLES	18 671	14 482
INCOME STATEMENT
Sales	0	0
Costs (-)	0	0
Financial income	39	39
Financial expense (-)	-476	-365
Other operating income	0	0
Other operating expense (-)	0	0
TOTAL INCOME STATEMENT	-437	-326

To the best of the Company's knowledge, there were no other relationships or special agreements among the shareholders at June 30, 2023 (reviewed).

7.19. EVENTS AFTER THE BALANCE SHEET DATE

➢ In July, IBA and SCK CEN both subscribed to a capital increase of PanTera NV/SA with contribution in kind and in cash for a total amount of EUR 20.4 million. With the cash received, PanTera has paid for an order of a Rhodotron TT-300 HE from IBA for EUR 16.0 million. In addition, IBA has granted a convertible loan to PanTera for a total of EUR 1.0 million, with two drawdowns in July and August respectively for a total amount of EUR 0.5 million.

➢ As part of scheduled renegotiations, the unused syndicated revolving credit facilities of EUR 37 million were refinanced in August and increased to EUR 40 million.

8.1. FIGURES AND SIGNIFICANT EVENTS:

(EUR 000)	H1 2023	H1 2022	Variance	Variance %
Total Net Sales	169 418	160 032	9 386	5.9%
Proton Therapy	95 082	101 338	-6 256	-6.2%
Other Accelerators	41 354	31 798	9 556	30.1%
Dosimetry	32 982	26 896	6 086	22.6%
REBITDA	-13 859	14 065	-27 924	-198.5%
% of Sales	-8.2%	8.8%
REBIT	-20 296	4 564	-24 860	-544.7%
% of Sales	-12.0%	2.9%
Profit Before Tax	-22 656	297	-22 953	-7728.3%
% of Sales	-13.4%	0.2%
NET RESULT	-27 263	-1 717	-25 546	1487.8%
% of Sales	-16.1%	-1.1%

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

REBIT: Recurring earnings before interest and taxes

Business Highlights

• ➢ Eight Other Accelerators systems sold in H1 (H1 2022: 21 systems), with particularly strong Services performance
• ➢ Two Proteus®ONE and one Proteus®PLUS1 system sold in H1 (H1 2022: three Proteus®ONE systems);
• ➢ 35 PT projects under construction or installation at the end of the period and strong acceleration in backlog conversion expected in H2
• ➢ Strategic collaboration signed between PanTera and TerraPower Isotopes to accelerate access to actinium-225 for the pharmaceutical industry
• ➢ Launch of AKURACY®, an integrated solution for Cardiac PET Imaging
• ➢ FLASH proton therapy research partnership initiated with Particle Therapy Interuniversity Center Leuven (PARTICLE)

Financial Highlights

• ➢ Total H1 Group revenues of EUR 169.4 million, up 5.9% on the same period last year driven by good Other Accelerators backlog conversion, strong Dosimetry sales, and Service revenue growth but dampened by slow uptick in Proton Therapy
• ➢ Group REBIT of EUR -20.3 million affected in H1 by:
  • Proton Therapy revenue recognition, largely linked to phasing of projects and

some unrelated, customer-specific installation delays. As a result, strong improvement is expected in H2, with revenue recognition on five projects planned in H2 and three project shipments or installations shifted to H2.

• Investment made at Group level in digital development, supply chain and research and development to prepare for growth in the next quarters
• ➢ Strong focus on inventory build-up during the period, with an increase of EUR 33 million (+32.4%), in preparation for backlog execution in H2 and beyond, in particular following the 10-room Proton Therapy deal signed in 2022 in Spain
• ➢ Gross margin was 26.6%, down from 39.1% last year, impacted by inflation, low overhead absorption and product mix; last year's numbers also included the one-off positive impact of indemnities related to Rutherford in the UK
• ➢ Equipment order intake was EUR 88 million and Dosimetry order intake rose 20.2% to EUR 36.9 million
• ➢ No change in guidance, with growth to 2026 REBIT target weighted to after 2024
• ➢ Dosimetry had a strong half year, with REBIT up 200% on last year to EUR 3.2 million, with the business unit increasing its customer base and global reach
• MID YEAR REPORT 2023// 32 ➢ Continued strong performance of Services with PT revenues increasing 10% versus

H1 2022 and overall Service revenues increasing 16.8%

• ➢ Equipment and Services backlog remains high at EUR 1.3 billion, with equipment and upgrade backlog reaching EUR 707 million; operational measures in place to support backlog conversion
• ➢ Total Group net loss of EUR 27.3 million (H1 2022: EUR 1.7 million loss), reflective

8.2. OPERATING REVIEW

8.2.1 Proton Therapy and Other accelerators

of revenue recognition weighted to the second half

➢ Strong balance sheet retained with EUR 103.3 million gross cash and EUR 61.7 million net cash position. EUR 41 million undrawn short-term credit lines still available at period end

(EUR 000)	H1 2023	H1 2022	Variance	Variance %
Net sales	136 436	133 136	3 300	2.5%
Proton Therapy	95 082	101 338	-6 256	-6.2%
Other Accelerators	41 354	31 798	9 556	30.1%
REBITDA	-18 486	12 211	-30 697	-251.4%
% of Sales	-13.5%	9.2%
REBIT*	-23 455	3 523	-26 978	-765.8%
Proton Therapy	-22 948	4 085	-27 033	-661.8%
Other Accelerators	-507 -	562	55	9.8%
% of Sales	-17.2%	2.6%

* Based on a pro forma allocation of overheads and SG&A to each business

(EUR 000)	H1 2023	H1 2022	Variance	Variance %
Equipment Proton Therapy	38 537	49 923	-11 386	-22.8%
Equipment Other Accelerators	25 473	21 187	4 286	20.2%
Total equipment revenues	64 010	71 110	-7 100	-10.0%
Services Proton Therapy	56 545	51 415	5 130	10.0%
Services Other Accelerators	15 881	10 611	5 270	49.7%
Total service revenues	72 426	62 026	10 400	16.8%
Total revenues Proton Therapy &
Other Accelerators	136 436	133 136	3 300	2.5%
Service in % of segment revenues	53.1%	46.6%

Overview

• ➢ Total net sales were EUR 136.4 million, up 2.5% versus H1 2022
• ➢ PT equipment revenues decreased to EUR 38.5 million due to several elements:
  • Five major projects already scheduled in H2 as per initial timelines
  • Three projects shifted from H1 into H2
  • New order intake received at the end of H1

Revenues are therefore expected to be recognized for this work in H2 which will mean overall significantly higher levels of activity in the period

• ➢ PT order intake of EUR 59 million, with two contracts for three rooms in total signed in China and Israel
• ➢ Other Accelerators equipment revenue increased by 20.2%, due to high backlog conversion from 2022
• ➢ Good order intake for Other Accelerators with eight new sales in the period, and an encouraging pipeline
• ➢ Services revenues grew by 16.8% to EUR 72.4 million, despite no new centres initiating treatment. This increase in revenues is due to the growing installed base and required upgrades and this trend in Other Accelerators services is expected to continue.

➢ Combined PT/Other Accelerators REBIT of EUR -23.5 million, largely attributable to revenue recognition phasing in PT, and to a lesser extent some PT installations shifting to H2 and some inflationary impacts on equipment and labour costs:

• Proton Therapy REBIT of EUR 22.9 million
• Other Accelerators REBIT of EUR -0.51 million

Proton Therapy

(EUR 000)	H1 2023	H1 2022	Variance	Variance %
Equipment Proton Therapy	38 537	49 923	-11 386	-22.8%
Services Proton Therapy	56 545	51 415	5 130	10.0%
Net sales	95 082	101 338	-6 256	-6.2%
REBIT	-22 948	4 085	-27 033	-661.8%
% of Sales	-24.1%	4.0%

* Based on a pro forma allocation of overheads and SG&A to each business

On backlog conversion, five large projects are scheduled for revenue recognition in H2 as expected, while three others shifted to H2 due to customer-related reasons. Four projects also saw moderate cost increases representing around 1.2% of the total equipment cost base, linked to inflation on labor and equipment. Order intake came in late in the period, at the end of Q2. Revenue recognition for IBA's Proton Therapy business unit has therefore been very slow in the first half. However, the equipment for these projects is already available, as demonstrated by the record inventory levels, and the Company is gearing up to ship this equipment in H2 and start installation.

Overall PT revenues decreased by 6.2%, despite higher production levels and growing service revenues. This is largely in relation to the elements mentioned above. In addition, 2022 was positively impacted by the receipt of indemnities related to Rutherford in the UK.

IBA has 35 PT projects under production or installation, consisting of eight Proteus®PLUS and 27 Proteus®ONE systems. The pipeline remains active, with a particular interest from Asia and America. IBA remains the market leader in PT, with 42% market share.

Contract wins during the period include Medtechnica Ltd for two Proteus®ONE solutions. Once installed at the Tel Aviv Sourasky Medical Center, these will be the first proton therapy systems in Israel. Elsewhere an agreement was secured with CGN Medical Technology for the installation of Proteus®PLUS in Chengdu, China, linked to an existing strategic licensing agreement with the West China International Cancer Treatment Center.

There are 37 IBA PT sites generating service revenues worldwide, with no new sites entering service in the first half. Post-period end, the Tata Memorial Hospital in Mumbai treated its first patient in August 2023 making it the second operational proton therapy center in India as well as the second IBA center in the country. PT Services had a strong first half, increasing by 10% on H1 2022. Services backlog remains very high at EUR 617 million. Services remain an important recurrent revenue stream for IBA, providing us with visibility on sustainable profitable growth.

Investment into PT research remains a key pillar of IBA's strategy. In June, a research partnership was initiated with Particle Therapy Interuniversity Center Leuven (PARTICLE) to support the development of ConformalFLASH® . Preclinical research will be conducted to evaluate the impact of FLASH on tissue toxicity using IBA's Proteus®ONE system.

	Other Accelerators
--	--------------------

(EUR 000)	H1 2023	H1 2022	Variance	Variance %
Equipment Other Accelerators	25 473	21 187	4 286	20.2%
Services Other Accelerators	15 881	10 611	5 270	49.7%
Net sales	41 354	31 798	9 556	30.1%
REBIT	-507	-562	55	-9.8%
% of Sales	-1.2%	-1.8%

* Based on a pro forma allocation of overheads and SG&A to each business

Other Accelerators had a solid H1, with eight systems sold globally and an order intake of EUR 29 million. Equipment revenues increased by EUR 4.3 million (+20.2%), due to good backlog conversion. 10 installations started in the first half, with 21 additional installations expected to initiate by the full year. The services part of the business performed extremely well, growing by 49.7% due to an increased installed base, several upgrades to existing machines and a strong replacement parts business.

Order intake for Industrial Solutions in the period was impacted by macroeconomic factors, yet interest in IBA's Rhodotron® machines remains high, particularly for use in sterilization settings. Revenue in the first half rose significantly, 72.3% on the same period last year, on the back of high order intake from 2022.

Demand for IBA's RadioPharma Solutions remains strong. May saw the launch of AKURACY® , an integrated solution for Cardiac PET imaging, an increasingly sought-after clinical tool. AKURACY® combines PET production equipment with a streamlined production process of the radiotracer 13Nammonia. IBA continues to support the development of new theranostic solutions, particularly for cancer. Recently IBA successfully installed a Cyclone® 30XP at in Julich, Germany, for the production of the radioisotope astatine-221.

PanTera, IBA and SCK CEN's joint venture focussed on the production of the radioisotope actinium-225 (²²⁵Ac) to meet growing global demand, has made good progress in the past six months and in June a strategic partnership was secured with TerraPower Isotopes for early production of ²²⁵Ac. The collaboration is focussed on both increasing the near-term production of ²²⁵Ac for use in ongoing clinical trials, as well as ensuring the large-scale supply of the radioisotope in the long term. PanTera will continue to share updates as significant milestones are reached.

Post period end, IBA sold three additional machines in the Other Accelerator segment, bringing order intake to a total of 11 machines. These included a TT1000, IBA's unique X-ray Rhodotron® , and an agreement with Grand Pharmaceutical Group for a Cyclone® KIUBE cyclotron in China. Alongside the cyclotron, a strategic collaboration was signed for the production of radioisotopes for cancer diagnosis, such as Fluorine-18, Copper-64, and Zirconium-89.

8.2.2 DOSIMETRY

(EUR 000)	H1 2023	H1 2022	Variance	Variance %
Net sales	32 982	26 896	6 086	22.6%
REBITDA*	4 627	1 854	2 773	149.6%
% of Sales	14.0%	6.9%
REBIT*	3 159	1 041	2 118	203.5%
% of Sales	9.6%	3.9%

Overview

• ➢ Very strong sales of EUR 33.0 million, up 22.6% on the comparator period last year. Around EUR 1.5 million of the growth was related to the Modus acquisition.
• ➢ Order intake grew to a record EUR 36.9 million, an increase of 20.2% versus H1 last year, driven by conventional radiotherapy and proton therapy quality assurance solutions, as well as the 2022 Modus acquisition
• ➢ Backlog reached a high of EUR 35.6 million, growing 46.8% from the end of 2022 (H1 2022: EUR 21.8 million)
• ➢ REBIT rose more than 200 % to EUR 3.2 million (H1 2022: EUR 1.0 million), thanks to the excellent levels of sales

The Dosimetry team has advanced several launches and upgrades in the first half. DOSE-X, a next-generation reference class electrometer, was released in April 2023. At ESTRO in May IBA demonstrated upgrades to patient QA software myQA® iON 2.0 and radiation oncology risk management software myQA® PROactive.

The strategic alliance first signed with ScandiDos in August 2022 has resulted in the expansion of IBA's dosimetry footprint and the integration of core technologies. During the period IBA and ScandiDos signed a distribution agreement enabling users to buy the combined myQA® iON and Delta4 phantom+ directly from IBA.

8.3. FINANCIAL REVIEW

Group revenue in the period was EUR 169.4 million, a 5.9% increase from H1 2022. Growth of revenues was modest, impacted by the H2 phasing of revenue recognition and some PT projects shifting to H2, despite good backlog conversion in Other Accelerators, strong Dosimetry sales and growth in Services. H2 is expected to see a very significant increase in installations and related backlog conversion.

Gross profit as a percentage of sales was 26.5% (H1 2022: 39.1%), mainly affected by lower absorption of overheads due to low revenue recognition, product mix and to a lesser extent some inflationary increases.

Operating expenses increased by 12.6%. Sales and marketing and R&D costs increased in the period, in relation to recruitment, higher levels of travel and marketing expenditure, as well as investments in the future of the business including digital and product development. General and administrative expenses were on the other hand tightly controlled in the period, beating inflationary increases to salaries.

The recurring operating loss (REBIT) stood at EUR -20.3 million (H1 2022: EUR 4.6 million), strongly impacted by delays in revenue from slower than expected backlog conversion as well as high levels of operating expenditure.

Other operating loss of EUR 0.5 million included stock option costs.

Financial expenses included interest received and paid on bank deposits and loans as well as foreign exchange impacts in particular on the USD, Chinese yuan and Argentine peso.

Taxes were strongly affected by increasing operations in Asia, scope changes and deferred tax impacts in certain geographies.

As a result of the above, IBA reported a net loss of EUR 27.3 million (H1 2022: net loss EUR 1.7 million).

Operating cash flow generated was EUR -43.7 million down from EUR 25.2 million last year, impacted by a large inventory increase and an uptick in downpayments to suppliers as the Company geared up to deliver projects in H2 and beyond, in particular in the Proton Therapy and Industrial businesses.

Cash flow used in investing activities was EUR 6.8 million, driven by increased capital expenditure in IT tools and medical device regulation costs and a small acquisition in the Radiopharma sector.

Cash flow used in financing activities was EUR 3.2 million, mostly comprising lease repayments.

The balance sheet is solid, with a gross cash position at period end of EUR 103.3 million and a net cash position of EUR 61.7 million. At the end of the period, IBA had EUR 41 million undrawn short-term credit lines still available and all bank covenants have been complied with. As part of scheduled renegotiations, unused syndicated revolving credit facilities of EUR 37 million were refinanced in August and increased to EUR 40 million, bringing total credit lines available to EUR 44 million.

Sustainability

IBA continued to progress on its four strategic sustainability streams using its B Corp certification as a tool to operationalize a stakeholder approach. In particular, during the period, IBA started its B Corp recertification process aiming at reaching above 100 points by 2024 (from 90 in 2021) and also started working with EcoVadis, to map out its supply chain ESG risk. Other initiatives during the period included the implementation of eco-design practices on major product line design processes and employee initiatives on mobility and biodiversity to promote sustainability.

8.4. OUTLOOK

The decline in REBIT in the first half was largely attributable to revenue recognition on several projects scheduled in H2 as per initial timelines and to a lesser extent some project shifts, late

order intake and some inflationary pressures. Looking ahead, we are confident that conversion of existing contracts will strongly accelerate in Proton Therapy and Other Accelerators in H2

1. This, alongside an anticipated uptick in order intake and the continuing performance of the Dosimetry business, means that Group revenue will be very significantly weighted to the second half.

Operations teams are prioritizing the delivery of inventory to projects in order to accelerate revenue recognition. At present, the Group has very high levels of inventory that is ready to be shipped. We are now expected to deploy this through the second half and already have visibility on the majority of this work in the period. At the Group level IBA continues to keep overhead and OPEX costs under strict control.

IBA reiterates its mid-term guidance laid out at the full-year results, based on the assumption that macro-economic factors normalize over the coming year: supply chain issues stabilize, inflation drops back towards 3%, and challenges accessing certain regions reduce. In addition, guidance is on the basis that order intake

8.5. SUBSEQUENT EVENTS

• ➢ Capital increase of subsidiary PanTera, a joint-venture with SCK-CEN, for a total amount of EUR 20.4 million
• ➢ Unused credit facilities of EUR 37 million refinanced in August and increased to EUR

8.6. STATEMENT BY THE DIRECTORS

These interim condensed consolidated financial statements have been prepared by the Chief Executive Officer (CEO) Olivier Legrain and Chief Financial Officer (CFO) Soumya Chandramouli. To their knowledge: they are prepared in accordance with applicable accounting standards, give a true and fair view of the consolidated results. The interim

8.7. CORPORATE GOVERNANCE

On the occasion of the 2023 Annual General Meeting, the following mandates were renewed at the level of the management of the Company:

➢ The mandate of Olivier Legrain was renewed and;

remains solid, especially in the Proton Therapy and Industrial Solutions businesses. As a reminder, subject to these factors, IBA, expects:

• ➢ 15% CAGR 2022-2026 on revenues, nearly doubling revenues over the next four years
• ➢ REBIT on sales will reach around 10% by 2026, delivered gradually and weighted to after 2024, as the current macro-economic effects wane and operating leverage accelerates with volume
• ➢ CAPEX will grow from current EUR 5-7 million per year to around EUR 10-12 million per year until 2026 to support increased investment in infrastructure, innovation, sustainability and digitalization to maintain IBA's leading offering and invest in its future growth

40 million, bringing total credit lines to EUR 44 million

➢ Three additional machines sold in the other accelerator business, bringing the year-todate total to 11 machines

management report includes a fair review of important events and significant transactions with related parties for the first half of 2023 and their impact on the interim condensed consolidated financial statements, as well as a description of the principal risks and uncertainties that the Company faces.

• ➢ The mandate of Consultance Marcel Miller SCS was renewed
• ➢ The mandate of Bridging for Sustainability SPRL was renewed

Glossary of alternative performance measures (APM)

Gross profit

Definition: Gross profit is the difference of the aggregate amount recognized on "Sales" and "Services" after deducting the costs associated with the construction and production of the associated equipment and incurred in connection with the provision of the operation and maintenance services.

Reason: Gross profit indicates IBA's performance by showing how it is able to generate revenue from the expenses incurred in the construction, operation and maintenance of dosimetry, proton-therapy and other accelerators.

EBIT

Definition: Earning before interests and taxes (''EBIT'') shows the performance of the group (or segment) before financial income/expenses and taxes. It shows all operating income and expenses incurred during the period.

Reason: EBIT is a useful performance indicator as it shows IBA's operational performance of the period by eliminating the impact of the financial transactions and taxes.

REBIT

Definition: Recurring earning before interests and taxes (''REBIT'') shows the result of the group (or segment) before financial income/expenses and taxes and before the other operating income and other operating expenses. REBIT is an indicator of a company's profitability of the ordinary activities of the group, adjusted with the items considered by the management to not be part of the underlying performance.

Reason: Management considers REBIT as an improved performance indicator for the group allowing year-on-year comparison of the profitability, as cleaned up with transactions not considered part of the underlying performance.

NET FINANCIAL DEBT

Definition: The net financial debt measures the overall debt situation of IBA.

Reason: Net financial debt provides an indication of the overall financial position strength of the Group and measures IBA's cash position.

(EUR 000)	June 30, 2022 (reviewed)	June 30, 2023 (reviewed)
EBIT = Segment result (Note 4)	2 182	-20 758
Other operating expenses (+)	2 382	462
Other operating income (-)	0	0
REBIT	4 564	-20 296
Depreciation and impairment of intangible and tangible assets (+)	5 039	5 424
Write-offs on receivables and inventory (+/-)	4 462	1 013
REBITDA	14 065	-13 859

(EUR 000)	December 31, 2022 (audited)	June 30, 2023 (reviewed)
Long-term borrowings and lease liabilities (+)	31 458	32 027
Short-term borrowings and lease liabilities (+)	9 409	9 557
Cash and cash equivalents (-)	-158 366	-103 311
Net financial debt	-117 499	-61 727

Auditor's report on the IFRS interim condensed consolidated financial statements at June 30, 2023

To the board of directors of Ion Beam Applications SA

Dear Sirs,

We have reviewed your company and its subsidiaries' interim condensed consolidated financial statements as of 30 June 2023, which show a balance-sheet total of KEUR 610.241 and a net loss of KEUR 27.263, and from which the accounting data reported in the accompanying draft press release has been derived. Our review report dated 30 August 2023 addressed to the shareholders contained the conclusion that nothing has come to our attention that causes us to believe that the interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34, as adopted by the European Union.

In our opinion, the accounting data reported in the accompanying draft press release is consistent, in all material respects, with the interim condensed consolidated financial statements from which it has been derived.

Consequently, in accordance with the royal decree of 14 November 2007, you may insert the following paragraph in the accompanying draft press release:

« The statutory auditor has issued an unqualified review report dated 30 August 2023 on the company and its subsidiaries' interim condensed consolidated financial statements as of and for the six month period ended 30 June 2023, and has confirmed that the accounting data reported in the press release is consistent, in all material respects, with the interim condensed consolidated financial statements from which it has been derived.»

This report is intended solely for the information of the members of the board of directors, in the context of their obligations under the royal decree of 14 November 2007, and should not be provided to any third party or used for any other purpose.

Diegem, 30 August 2023

The statutory auditor PwC Reviseurs d'Entreprises SRL Represented by

Romain Seffer Partner

PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Culliganlaan 5, B-1831 Diegem T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB