Ion Beam Applications, SA

Interim / Quarterly Report • Dec 5, 2022

ION BEAM APPLICATIONS SA ("IBA") UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022

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 30	7
	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 30.	9
	Notes to interim condensed consolidated financial statement 10
1.	Financial statements – basis of preparation 10
2.	Consolidation scope and the effects of changes in the composition of the group 13
3.	Critical accounting estimates and judgments 16
4.	Operating segments 21
5.	Earnings per share 24
6.	Other selected disclosures 25
7.	Interim management report 34
	Glossary of alternative performance measures (APM) 41
	Auditor's report on the IFRS interim condensed consolidated financial statements at June 30, 202242

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, fabrication 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 29, 2022. 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 10, 2020; his term will expire at the Ordinary General Meeting of shareholders in 2023, which will approve the 2022 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,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 10, 2020; its term will expire at the Ordinary General Meeting of shareholders of 2023, which will approve the 2022 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 10, 2020; its term will expire at the Ordinary General Meeting of shareholders of 2023, which will approve the 2022 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 41 are an integral part of these condensed interim consolidated financial statements.

(EUR 000)	Note	December 31, 2021 (audited)	June 30, 2022 (unaudited)
ASSETS
Goodwill Other intangible assets	6.2 6.2	3 821 3 790	12 098 4 798
Property, plant and equipment	6.2	19 081	18 703
Right-of-use assets	6.2	29 566	28 376
Investments accounted for using the equity method		20	270
Other investments	2.3.3	12 923	1 851
Deferred tax assets	3.1	8 642	9 231
Long-term financial assets		13	0
Other long-term assets	6.3	41 032	44 075
Non-current assets		118 888	119 402
Inventories	6.4	74 874	93 348
Contract assets	6.5	35 639	34 419
Trade receivables		75 809	48 684
Other receivables	6.6	41 489	51 855
Short-term financial assets		82	13
Cash and cash equivalents	6.7	199 270	202 332
Current assets		427 163	430 651
TOTAL ASSETS		546 051	550 053
EQUITY AND LIABILITIES
Capital stock	6.8	42 413	42 413
Share Premium	6.8	42 836	42 836
Treasury shares	6.8	-12 613	-17 773
Reserves		8 348	-6 821
Foreign Currency Reserve		-6 315	-7 313
Retained earnings		51 227	43 905
Capital and reserves		125 896	97 247
Non-controlling interests		0	0
EQUITY		125 896	97 247
Long-term borrowings	6.9	29 937	26 937
Long-term lease liabilities	6.10	23 943	22 376
Long-term provisions	6.11	8 411	5 668
Long-term financial liabilities		654	2 230
Deferred tax liabilities		197	115
Other long-term liabilities	6.12	8 450	10 661
Non-current liabilities		71 592	67 987
Short-term borrowings	6.9	9 734	9 734
Short-term lease liabilities	6.10	5 362	5 695
Short-term provisions	6.11	6 467	7 004
Short-term financial liabilities		6 996	9 433
Trade payables		47 731	53 439
Current income tax liabilities		5 173	3 734
Other payables	6.13	58 988	75 062
Contract liabilities	6.5	208 112	220 718
Current liabilities		348 563	384 819
TOTAL LIABILITIES		420 155	452 806
TOTAL EQUITY AND LIABILITIES		546 051	550 053

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 41 are an integral part of these IFRS interim condensed consolidated financial statements.

		June 30, 2021	June 30, 2022
(EUR 000)	Note	(unaudited)	(unaudited)
Sales		77 738	94 990
Services		59 445	65 042
Sales	4.1	137 183	160 032
Cost of sales and services (-)	4.1	-92 110	-97 455
Gross profit		45 073	62 577
Selling and marketing expenses (-)		-9 490	-11 358
General and administrative expenses (-)		-19 593	-26 761
Research and development expenses (-)		-15 316	-19 894
Other operating expenses (-)	6.14	-378	-2 382
Operating result (EBIT)	4	296	2 182
Financial expenses (-)		-3 115	-3 135
Financial income		2 709	1 250
Share of profit/(loss) of associates accounted for using the equity method		-733	0
Profit/(loss) before taxes		-843	297
Tax income/(expenses)	6.15	-1 092	-2 014
Profit/(loss) for the period		-1 935	-1 717
Attributable to :
Equity holders of the parent		-1 935	-1 717
Non-controlling interests		0	0
Earnings per share (EUR per share)
Basic	5.1	-0.0657	-0.0589
Diluted	5.2	-0.0657	-0.0589

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

		June 30, 2021
(EUR 000)	Notes	(unaudited)	June 30, 2022 (unaudited)
Profit/(loss) for the period		-1 935	-1 717
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
- Exchange differences on translation of foreign operations		-107	-720
- Exchange difference related to net investment		-339	-278
- Net movement on cash flow hedges	3.7	-3 698	-7 502
Net other comprehensive income to be reclassified to profit or loss in
subsequent periods		-4 144	-8 500
Other comprehensive income not to be reclassified to profit or loss in subsequent periods :
- Revaluation at fair value of other investments	2.3.3	625	-11 097
- Movements in post-employment benefits	6.11	0	2 953
Net other comprehensive income not to be reclassified to profit or loss in
subsequent periods		625	-8 144
Total Other comprehensive income for the year		-3 519	-16 644
Total comprehensive income for the year		-5 454	-18 361

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

(EUR 000)	Capital stock (Note 6.8)	Share premium (Note 6.8)	Treasury shares (Note 6.8)	Hedging reserves	Other reserves – value of stock option plans and share based compensation	Other reserves – defined benefit plans	Other reserves - Revaluation reserves	Other reserves - Other	Currency translation difference	Retained earnings	TOTAL Shareholders' equity and reserves
Balance at
January 1, 2021	42 294	41 978	-5 907	529	15 840	-3 550	4 179	154	-5 569	51 883	141 831
Profit/(loss) for	0	0	0	0	0	0	0	0	0	-1 935	-1 935
the period
Other comprehensive income	0	0	0	-3 698	0	0	625	0	-446	0	-3 519
Total comprehensive income for the period	0	0	0	-3 698	0	0	625	0	-446	-1 935	-5 454
Dividends	0	0	0	0	0	0	0	0	0	-5 863	-5 863
Employee stock options and share-based payments	0	0	0	0	378	0	0	0	0	0	378
Purchase & sale of treasury shares	0	0	-5 620	0	0	0	0	0	0	0	-5 620
Other changes	0	0	134	0	0	0	0	0	0	-14	120
Balance at June 30, 2021 (unaudited)	42 294	41 978	-11 393	-3 169	16 218	-3 550	4 804	154	-6 015	44 071	125 392
Balance at	42 413	42 836	-12 613	-8 440	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	0	0	0	-7 502	0	2 953	-11 097	0	-998	0	-16 644
comprehensive income
Total	0	0	0	-7 502	0	2 953	-11 097	0	-998	-1 717	-18 361
comprehensive income for the period
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 of treasury shares (note 6.8)	0	0	-5 160	0	0	0	0	0	0	0	-5 160
Other changes	0	0	0	0	0	0	0	0	0	-6	-6
Balance at June 30, 2022 (unaudited)	42 413	42 836	-17 773	-15 942	17 161	-1 111	-7 083	154	-7 313	43 905	97 247

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 41 are an integral part of these IFRS interim condensed consolidated financial statements.

		June 30, 2021	June 30, 2022
(EUR 000)	Note	(unaudited)	(unaudited)
CASH FLOW FROM OPERATING ACTIVITIES
Net loss for the period		-1 935	-1 717
Adjustments for :
Depreciation of tangible assets	6.2	4 138	4 307
Amortization of intangible assets	6.2	775	732
Allowance for estimated credit loss on receivables		-204	4 076
Changes in fair value of financial assets (profits)/losses		1 374	-3 408
Changes in provisions	6.11	1 579	1 641
Deferred taxes	6.15	-360	-285
Share of result of associates and joint ventures accounted for using the equity method		733	0
Other non-cash items		-1 994	-4 387
Net cash flow changes before changes in working capital		4 106	959
Trade receivables, other receivables and deferrals		21 642	13 704
Inventories and contracts in progress		-11 209	-7 585
Trade payables, other payables and accruals		1 606	17 717
Other short-term assets and liabilities		-2 826	1 319
Changes in working capital		9 213	25 155
Net income tax paid/received		-627	-1 458
Interest expense		1 255	1 067
Interest income		-40	-573
Net cash (used)/generated from operations		13 907	25 150
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	6.2	-1 202	-1 159
Acquisition of intangible assets	6.2	-262	-1 095
Disposals of fixed assets		0	0
Acquisition of subsidiaries, net of cash acquired		0	-8 436
Acquisition of third-party and equity-accounted investments		0	-275
Cash release on disposals of subsidiaries from previous years	2.3.2	1 291	0
Other investing cash flows		-8	0
Net cash (used)/generated from investing activities		-181	-10 965
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of borrowings		-8 250	-3 000
Repayment of lease liabilities	6.10	-2 740	-2 826
Interest paid		-1 368	-1 153
Interest received		40	573
Dividends paid		-4 579	0
(Acquisitions)/disposal of treasury of shares		-5 400	-5 161
Other financing cash flows		-370	-243
Net cash (used)/generated from financing activities		-22 667	-11 810
Net cash and cash equivalents at beginning of the year		153 911	199 270
Net change in cash and cash equivalents		-8 941	2 375
Exchange (profits)/losses on cash and cash equivalents		307	687
Net cash and cash equivalents at end of the year	6.7	145 277	202 332

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, 2022 (unaudited). 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, 2021 (audited).

These interim condensed consolidated financial statements have been approved for issue by the Board of Directors on August 29 2022.

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, 2021 (audited), except for the adoption of new standards and interpretations effective as of 1 January 2022.

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 2022, but do not have an impact on the interim condensed consolidated financial statements of the Group.

Only amendments and/or interpretations of IAS 37 are relevant to the group, the nature and the impact are described below:

Amendments to IAS 37 onerous contracts – costs of fulfilling a contract

The amendments clarify that the 'costs of fulfilling a contract', when assessing whether a contract is onerous or loss-making, comprise both:

• the incremental costs e.g. direct labour and materials; and
• an allocation of other direct costs e.g. an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract

General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.

These amendments are effective for reporting periods beginning on or after 1 January 2022. Since the group's current practice is in line with the amendments, the Group does not expect any effect on its consolidated financial statements.

1.1.2 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, 2021 (unaudited)	Average rate for the 6 months period at June 30, 2021 (unaudited)	Closing rate on December 31, 2021 (audited)	Average annual rate 2021	Closing rate on June 30, 2022 (unaudited)	Average rate for the 6 months period at 2022
USD	1.1884	1.2050	1.1326	1.1831	1.0387	1.0939
SEK	10.1110	10.1256	10.2503	10.1420	10.7300	10.4743
CNY	7.6742	7.7954	7.1947	7.6318	6.9624	7.0780
INR	88.3240	88.2940	84.2292	87.3256	82.1130	83.1287
RUB	86.7725	89.5044	85.3004	87.1639	55.8782	85.4579
JPY	131.4300	129.7850	130.3800	129.8215	141.5400	134.2403
CAD	1.4722	1.5031	1.4393	1.4829	1.3425	1.3905
GBP	0.8581	0.8680	0.8403	0.8598	0.8582	0.8418
ARS	113.6192	109.9083	116.4634	112.2964	130.7442	122.4874
THB	38.1180	37.0570	37.6530	37.7450	36.7540	36.7899
SGD	1.5976	1.6052	1.5279	1.5906	1.4483	1.4920
EGP	18.5901	18.8647	17.7837	18.5345	19.6128	18.8251
TWD	33.1163	33.7497	31.4035	33.0330	31.0632	31.3642
KRW	1 341.4100	1 345.7482	1 346.3800	1 352.5865	1 351.6000	1 346.6874
GEL	3.7266	3.9734	3.4820	3.7816	3.0408	3.3009

1.1.3 Current and expected impact of the current economic situation on the financial position, performance and cashflows

The 6 months period ending June 30, 2022 remained mixed due to the COVID-19 pandemic which continues to delay the execution of some of our projects, the scarcity of certain materials or components, the high inflation, and the effects of the armed conflict in Ukraine. The challenges experienced in 2021 remained in the first half of 2022 however considerable resilience was shown across all of the business lines.

COVID-19 pandemic

As a global business, the COVID-19 pandemic and associated lockdown restrictions particularly impacted the signing and installation of new contracts. The following elements related to the pandemic significantly impacted the Company:

• Postponed revenues for existing Proton Therapy and Other Accelerator equipment contracts and upgrades. As installations across all accelerator businesses shifted due to difficulties in accessing client sites, several installations of both new equipment and upgrades were either prolonged or delayed, leading to additional costs and shifting revenues to H2 and subsequent periods.
• Postponement of certain new orders for equipment and upgrades
• There was no major impact on customer services as all active proton therapy centers remain fully operational and continue to treat patients
• Manufacturing and supply chain remained fully operational and in constant contact with IBA's global network of key suppliers and manufacturing partners, identifying potential risks in time and taking appropriate measures to ensure minimal disruption to production and delivery
• Additional expenses related to COVID-19 prevention and equipment.

All of the above was partially compensated by continuing lower level of travel both on equipment and service contracts and in SG&A.

Armed conflict in 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. We have analyzed the impact of these sanctions to assess whether IBA Group still has on the 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. This conclusion is 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 those activities that are not subject to any EU sanction
• The returns generated by the existing activities, allow the Russian subsidiary to continue its operations and to transfer a dividend to IBA SA. The going-concern of

these activities is currently guaranteed taking into account the current facts and circumstances (the current state of the EU sanctions against Russia). Management believes that IBA has still the ability to obtain dividend from Russian entity.

The analysis of the impact of macro-economic and geopolitical challenges on IBA's financial position and cash-flow is summarized below:

1.1.4 Liquidity

Despite the difficult situation induced by the pandemic, the armed conflict in Ukraine, the scarcity of certain components and raw materials, and the high inflation, thanks to a cost saving program launched early into the pandemic, prudent investments and spending, resilient customers and a close follow-up of its balance sheet positions, IBA has been able to maintain a good cash position and remains net cash positive as at June 30, 2022 (unaudited).

IBA has credit lines available from its financing institutions worth EUR 37 million that are not drawn down and was not in breach of its bank covenants at June 30, 2022 (unaudited).

1.1.5 Goodwill impairment

The Company had performed an impairment test of goodwill as at December 31, 2021 (audited), which led to no impairment being necessary as of December 31, 2021 (audited). Despite the uncertainty in the business outlook generated by the parameters mentioned in paragraph 1.1.3, the business of the group remained in line with 2021 and the activities of the CGU Dosimetry (which the goodwill relate to) remained profitable during the first half of the year ending June 30, 2022 (unaudited). On that basis, the Group concluded that the current economic situation does not represent an indicator of impairment on the goodwill; it will perform a more detailed analysis as at December 31, 2022.

1.1.6 Tangible and intangible assets, other investments and other long-term financial assets

IBA has assessed that the current economic situation has not led to any indication of impairment of assets and therefore concluded that none of the impairment indicators in IAS 36 have been triggered.

1.1.7 Deferred taxes

As of June 30, 2022 (unaudited), the recoverability of deferred tax assets has been assessed based on the latest information available. This has not led to any impairment of deferred tax assets related to losses carried forward.

1.1.8 Hedge accounting

Despite the global crisis and inflation, the Group has maintained its hedge accounting policies as defined in the 2021 year-end financial statements. As IBA has not identified any trigger for hedge disqualification due to the current economic situation, the financial result has not been impacted as at June 30, 2022 (unaudited). The company will continue to review its positions going forward to identify any potential new trigger for hedge disqualification.

1.1.9 Expected credit loss

The Company has also considered the impact of the current economic situation on the expected credit loss of its financial instruments (mainly loans, trade and other receivables (short-term and long-term)). The amount and timing of the expected credit losses, as well as the probability assigned thereto, has been based on the available information at the end of the first half-year 2022. As a result of this review no significant additional credit losses directly related to these events have been recorded in the first half-year 2022.

2. 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.

2.1. LIST OF SUBSIDIARIES IN IBA GROUP

	Country of	Equity ownership	Change in % ownership over December 31,
NAME	incorporation	(%)	2021
IBA Participations SRL (BE 0465.843.290)
Cyclotron Road, 3, B-1348 LLN, Belgium	Belgium	100%	-
IBA Investments SCRL (BE 0471.701.397)
Chemin du Cyclotron, 3, B-1348 LLN, Belgium	Belgium	100%	-
Ion Beam Beijing Applications Co. Ltd. No.6 Xing Guang Er Jie, Beijing OPTO
Mechatronics Industrial Park, 101 111 Tongzhou District, Beijing, China	China	100%	-
Striba Ltd.
Waidmarkt 11, 50676 KÖLN, Germany	Germany	100%	-
IBA RadioIsotopes France SAS
59 Blvd Pinel, 69003 LYON, France	France	100%	-
IBA Dosimetry Ltd.
Bahnhofstrasse 5, 90592 Schwarzenbruck. Germany	Germany	100%	-
IBA Dosimetry America Inc.
3150 Stage Post Dr., Ste. 110, Bartlett, TN 38133, USA	USA	100%	-
IBA Proton Therapy Inc.
152 Heartland Blvd, Edgewood New York 11717, USA	USA	100%	-
IBA Industrial Inc.
152 Heartland Blvd, Edgewood New York 11717, USA	USA	100%	-
IBA USA Inc.
151 Heartland Blvd, Edgewood New York 11717, USA	USA	100%	-
IBA Particle Therapy Ltd.
Bahnhofstrasse 5, 90592 Schwarzenbruck, Germany	Germany	100%	-
LLC Ion Beam Applications
15, Savvinskaya nab.,
119435, Moscow, Russia	Russia	100%	-
IBA Particle Therapy India Private Limited Office Unit - F, 3rd Floor, Ali Towers, Old No 22, New No. 55, Greams Road, Thousand
Lights, Chennai - 600006, Tamil Nadu, India	India	100%	-
Ion Beam Application SRL
Ortiz de Ocampo 3302 Modulo 1 Buenos Aires (1425), Argentina	Argentina	100%	-
IBA Japan KK
3/F Shiodome Building, 1-2-20 Kaigan Minato-ku, Tokyo, Japan	Japan	100%	-
Ion Beam Applications Singapore PTE. Ltd
1 Scotts Road #21-10, Shaw centre, Singapore (228208)	Singapore	100%	-
IBA Egypt LLC
Building no.75/77 (Degla Plaza), 10th floor, Street no. 199, Degla, Maadi, Cairo, Egypt	Egypt	100%	-
Ion Beam Applications Limited
Rm.) 9-5 F, No. 162, Sec. 4, ZhongXiao East Rd. (St.), Daan Dist – Taipei City	China	100%	-
IBA Proton Therapy Canada, Inc.
3044 Rue Marcel-Proust Laval QC H7P 6A6 Quebec, Canada	Canada	100%	-
Modus Medical Devices Inc 1570 North Routledge Park, London, Ontario, Canada	Canada	100%	100%
IBA Georgia LLC			-
Tbilisi, Didube district, Udnadze st., N111, apartment N11, building N2 , Georgia	Georgia	100%
Ion Beam Applications Korea, Ltd. 408-ho A11, 15, Jeongbalsan-ro, Ilsandong-gu, Goyang-si, Gyeonggi-do, Republic of
Korea	South Korea	100%	-
IBA Dosimetry Co Ltd.
Room 101 Building 5, 88 Rongbei Road, Songjang District, Shanghai. China	China	100%	100%

2.2. LIST OF EQUITY-ACCOUNTED INVESTMENTS

NAME	Country of incorporation	Equity ownership (%)	Change in % ownership over December 31, 2021
Cyclhad SAS	France	33.33%	-
Normandy Hadrontherapy SAS	France	39.81%	-
Normandy Hadrontherapy SARL	France	50.00%	-
Spin-off Ac-225 NV	Belgium	-	50.00%

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 the reporting period, IBA participated in the set-up of a Joint Venture called "Spin-off Ac 225" together with SCK-CEN (StudieCentrum voor Kernenergie - Centre d'Étude de l'énergie Nucléaire), the Belgian nuclear research centre with a contributiuon to the share capital of EUR 0.3 million. 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.

2.3. BUSINESS COMBINATIONS AND OTHER CHANGES IN THE COMPOSITION OF IBA GROUP

2.3.1 Acquisition of Modus Medical Devices Inc (Canada)

In a transaction closed on 29 April 2022, the Group acquired 100% of the shares of Modus Medical Devices Inc.

With a development center in Canada and 17 team members, Modus has an international presence and is at the forefront of quality assurance in the field of advanced radiotherapy and medical imaging. Modus has earned the trust of the world's leading medical physicists by creating phantoms and software that help them fulfill their responsibilities with the utmost confidence.

This transaction qualifies as a business combination in accordance with IFRS 3 and is therefore accounted for by applying the acquisition method.

The consideration transferred by the Group to acquire Modus includes:

• A cash amount of CAD 11 million paid at closing date;
• A final working capital adjustment for an amount of CAD 0.4 million which has been paid to the sellers in June 2022 and;
• A contingent consideration maximum to CAD 2.5 million (earn out to be paid by the

Company) depending on the sales of certain products realized by Modus over 1 May 2022 to 30 April 2032;

The fair value of the contingent consideration amounts to CAD 2.5 million at acquisition date and remained unchanged at the reporting date.

The fair value categorized as level 3 has been estimated based on a model in which the possible outcomes are probability weighted.

The unobservable input to which this fair value is most sensitive is the estimated sales of Modus over the reference period.

At acquisition date, the Group has estimated the fair values of the identifiable assets and liabilities of Modus for a net amount of CAD 2.8 million (EUR equivalents of EUR 2.1 million), the excess of consideration represents a goodwill on acquisition for CAD 11.1 million (EUR equivalents of EUR 8.3 million). The goodwill is attributable to the business segment of Dosimetry. The excess price paid is supported by the strategy of the Group with this acquisition, which is twofold, first to boost and extend the sales of the product commercialised by Modus to additional markets where IBA already has experience, second to take advantage of some cost savings opportunities. At this stage, IBA has not made an in-depth assessment on the tax deductibility of the goodwill.

The fair values reported below result from a first preliminary exercise and have been determined on a provisional basis as IFRS 3 permits an acquirer to finalise the acquisition accounting and the purchase price allocation over a maximum period of 12 months from the date of acquisition. As a result of a later and more in-depth purchase price allocation, the goodwill may be adjusted and reduced against an additional intangible asset.

The fair values of the identifiable assets and liabilities of Modus as well as the consideration transferred and the resulting goodwill are set in the table below with the net cash flow effect at acquisition date:

(CAD 000) Fair value recognised on acquisition

ASSETS
Cash	3
Trade receivables	899
Other receivables and prepaid expenses	210
Inventories	797
Property, plant and equipment	12
Intangible assets	866
TOTAL ASSETS	2 787
Trade payables	4
TOTAL LIABILITIES	4
Net Assets acquired	2 783
Goodwill arising from acquisition	11 111
Paid in cash at acquisition date	11 000
Earn Out payments expected over ten years after acquisition date	2 500
Working capital adjustment paid in cash after acquisition date	394
Total purchase consideration	13 894
	11 391

From the date of acquisition, the contribution of Modus to the Group's revenue and net profit before tax is not deemed material as only 2 months of operations are included.

2.3.2 Disposal of companies

There was no disposal during the first 6 months of 2022.

2.3.3 Rutherford Estates Ltd

During the first half of the year, the Group faced the bankruptcy of Rutherford Estates Ltd, a health services provider based in the United Kingdom, operating 3 PT centres with another 2 that were not yet operational. Following the bankruptcy, IBA unwound the contracts and retained the down-payments received to date as compensation for the terminated contracts, partially covering the costs of the cancelled service contracts and existing allowances for bad debts, with a net positive impact of EUR 5.5 million. In addition, the Group also held a stake in the capital of Rutherford Estates Ltd, for an amount of EUR 11.1 million. The Fair Value of this existing investment was reduced to zero at the end of June and the adjustment is recognised in the Statement of Other Comprehensive Income.

Besides the direct impact on the 2022 Financial Statements, the backlog related to the related service contracts was reduced to zero, a reduction of EUR 81.1 million.

3. 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.

3.1. 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.

As at June 30, 2022 (unaudited), the Group had accumulated net operating losses of EUR 163.9 million (June 2021: EUR 148.3 million) usable to offset future profits taxable mainly in Germany. The Company recognized deferred tax assets of EUR 5.4 million with the view to use these tax losses carried forward.

The temporary differences for EUR 41.3 million mainly originate in the United States, Belgium, China, Germany and Russia. The temporary differences recognized as gross deferred tax assets amount to EUR 3.8 million and as gross deferred tax liabilities amount to EUR -0.1 million.

The negative result of the Group in June 30, 2022 (unaudited) does not significantly affect the existing budgeted plan of German entities which remained in profit for the period. A net deferred tax asset is recognized on these entities on usable tax losses carried forward and there is therefore no indicator that would trigger the reassessment of the deferred tax assets.

3.2. 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

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 (Proteus Plus). The contract applies to the mainland territory of the People's Republic of China. The agreement includes the sale of a license, the supply of proton therapy equipment and the provision of relevant support and training for a total value of EUR 100 million. Under IFRS 15, Management determined that the contract has 3 performance obligations:

• Licensing of exclusive IP rights for the manufacturing and sale of multi-room therapy systems in the territory.
• Supply of equipment components.
• Support and training.

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 a maximum value of EUR 15 million, 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 amount of variable consideration that is highly susceptible 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 it was mutually agreed to reduce it further to EUR 5 million in December 2022 in the event if unused. At the very latest the bond will expire at the earliest of the shipment of the equipment components or 48 months from the effective date of the agreement (August 25, 2024).

3.3. 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, 2022 (unaudited).

3.4. 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.

3.5. 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).

3.6. FINANCIAL ASSETS AND LIABILITIES – ADDITIONAL INFORMATION

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

(EUR 000)		December 31, 2021 (audited)	June 30, 2022 (unaudited)
FINANCIAL ASSETS	Net carrying value	Fair value	Net carrying value	Fair value
Trade receivables	75 809	75 809	48 684	48 684
Other long-term receivables	41 032	41 032	44 075	44 075
Non-trade receivables and advance payments	18 625	18 625	23 895	23 895
Other short-term receivables	22 862	22 862	21 958	21 958
Other investments	12 923	12 923	1 851	1 851
Cash and cash equivalents	199 270	199 270	202 332	202 332
Hedging derivative products	53	53	0	0
Derivative products – other	43	43	13	13
TOTAL	370 617	370 617	342 808	342 808
FINANCIAL LIABILITIES	Net carrying value	Fair value	Net carrying value	Fair value
Bank and other borrowings	39 671	43 081	36 671	39 471
Lease liabilities	29 305	31 043	28 071	29 439
Trade payables	47 731	47 731	53 439	53 439
Hedging derivative products	7 025	7 025	2 230	2 230
Derivative products – other	625	625	9 433	9 433
Other long-term liabilities	8 450	8 450	10 661	10 661
Other short-term liabilities	35 615	35 615	24 546	24 546
TOTAL	168 422	173 570	165 051	169 218

After reviewing the type of assets and liabilities included in the table above, we have decided to remove the "prepaid expenses" from "Other short term receivables" and "deferred income" from "Other short-term liabilities" as we do not consider these to be financial assets and liabilities. To ensure comparability, 2021 figures were re-stated (respectively EUR -5.2 million and EUR 18.5 million) compared to the published 2021 financial statements

At December 31, 2021 (audited) and June 30, 2022 (unaudited), the net carrying value of these financial assets and liabilities did not differ significantly from their fair value.

The headings "Hedging derivative products" and "Derivative products – other" in assets and liabilities include 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 HIL Applied Medical Ltd valued at fair value at Level 2.

The value of these investments has significantly decreased as a result of the bankruptcy of Rutherford Estates Limited (previously Proton Partners International (PPI)). The value of this equity investment has been reduced to EUR 0 generating a loss of EUR 11 million recorded in the other comprehensive income.

3.7. 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, 2022 (unaudited).

New financial instruments were acquired and are classified in level 2 (derivatives) and in level 3 (the contingent consideration for the acquisition of Modus, see note 2.3.1).

				December 31, 2021
(EUR 000)	Level 1	Level 2	Level 3	(audited)
Forward foreign exchange contracts		52		52
Foreign exchange rate swaps		1		1
Derivative hedge-accounted financial assets		53		53
Forward foreign exchange contracts		11		11
Foreign exchange rate swaps		31		31
Derivatives assets at fair value through the income
statement		42		42
Equity instruments at fair value	11 097	1 793		12 890
Forward foreign exchange contracts		4 904		4 904
Foreign exchange rate swaps		2 121		2 121
Derivative hedge-accounted financial liabilities		7 025		7 025
Forward foreign exchange contracts		285		285
Foreign exchange rate swaps		340		340
Derivatives liabilities at fair value through the income
statement		625		625

(EUR 000)	Level 1	Level 2	Level 3	June 30, 2022 (unaudited)
Forward foreign exchange contracts		13		13
Derivatives assets at fair value through the income
statement		13		13
Equity instruments at fair value		1 793		1 793
Financial liability at fair value			1 843	1 843
Forward foreign exchange contracts		8 971		8 971
Foreign exchange rate swaps		1 966		1 966
Derivative hedge-accounted financial liabilities		10 937		10 937
Forward foreign exchange contracts		554		554
Foreign exchange rate swaps		171		171
Derivatives liabilities at fair value through the income
statement		725		725

The net movement on cash-flow hedges concerns 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 amount per the end of

June 2022 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 strengthened against the EUR.

3.8. EXPECTED CREDIT LOSS

As at June 30, 2022 (unaudited), the allowance for expected credit losses on trade receivables amount to EUR 8.3 million (June 2021: EUR 3.9 millions). The increase is primarily driven by the bankruptcy of Rutherford Estates Limited as described in note 2.3.3.

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

4. 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 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.

4.1. OPERATING SEGMENTS

The operating segments are defined based on the information provided to the Management 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, fabrication 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)	Proton Therapy and			Inter-segment transactions
Six months ended June 30, 2021 (unaudited)	Other Accelerators	Dosimetry	Group	eliminated	Total segments
Sales	54 066	23 672	77 738	871	78 609
Services	56 692	2 753	59 445	0	59 445
Total sales	110 758	26 425	137 183	871	138 054
Cost of sales and services (-)	-77 921	-14 189	-92 110	-871	-92 981
Operating expenses (-)	-35 004	-9 395	-44 399	0	-44 399
Other operating expenses	-378	0	-378	0	-378
Segment result (EBIT)	-2 545	2 841	296	0	296
Financial income/(expenses)	-359	-47	-406	0	-406
Share of profit/(loss) of companies consolidated
using the equity method	-733	0	-733	0	-733
Result before taxes	-3 637	2 794	-843	0	-843
Tax income/(expenses)	-853	-239	-1 092	0	-1 092
RESULT FOR THE PERIOD	-4 490	2 555	-1 935	0	-1 935
REBITDA	2 021	3 724	5 745	0	5 745

4.1.1 Income statement

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

As at June 30, 2022 (unaudited), the Group recognised revenue for EUR 160.0 million, representing an increase of 17% from 2021 (EUR 137.2 million).

As at June 30, 2022 (unaudited), the Group's gross margin improved compared to the same period last year, despite the effects of the current economic situation.

The revenue and gross margin for the two operating segments are detailed in the table above and can be explained as follows:

• The segment of Proton Therapy and Other Accelerators has revenue of EUR 133.1 million and a gross margin of EUR 50.5 million. This performance has improved compared to 2021 mainly thanks to the equipment business which had some projects starting again after long delays due to the covid-19 pandemic. The service business remains stable. The performance was also impacted by Rutherford's bankrupcy (see note 2.3.3).
• The segment of Dosimetry had a strong first quarter which kept the revenue (EUR 26.9 million) slightly above 2021 (EUR 26.4 million) reflecting the stable order intake of that segment.

As at June 30, 2022 (unaudited), the Group had incurred operating expenses for EUR 58.0 million which show an increase of 31% compared to 2021. These expenses include General and Administrative expenses for EUR 26.8 million, Sales and Marketing expenses for EUR 11.4 million and Research and Development net of research credit for EUR 19.9 million. The increase is mainly caused by R&D and is the result of IBA maintaining

strategic R&D on both operating segments to ensure IBA's technological leadership in all business lines. In addition, there was a significant impact from inflation on the Operating Expense per the end of June 2022.

As at June 30, 2022 (unaudited), the other operating result (cost) of EUR -2.4 million was primarily composed of the one-off past service cost of EUR 1.3 million related to the pension plan transfer (further details in note 6.11), the costs of the two stock options plans the Group issued in 2020 and 2021, and bad debt.

As at June 30, 2022 (unaudited), the financial result (expenses) was EUR -1.9 million (2021: EUR -0.4 million), primarily composed of:

• Net Financial expenses for the Proton Therapy and Other Accelerators segment for EUR 3.0million. The expenses mainly include impacts from hedge instruments and foreign currency fluctuations for EUR 1.5 million, interests paid on debts for EUR -0.9million, and commission / bank charges for EUR -0.3 million. The financial revenue is primarily driven by the recognition of interest on bank accounts (EUR 0.33 million) and interest under the amortised cost method on financial notes
• Net Financial Income for the Dosimetry segment for EUR 0.2 million mainly including some favorable foreign exchange differences (EUR 0.34 million).

As at June 30, 2022, there were no costs related to the equity-accounted entities. There were no activities in the newly set up entity (the "Spin-off Ac 225") and the book value of Cyclhad SAS and Normandy Hadrontherapy SAS has previously been reduced to EUR 0 (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).

4.1.2 Financial position

(EUR 000) Six months ended December 31, 2021 (audited)	Proton Therapy and Other Accelerators	Dosimetry	Group
Non-current assets	103 765	15 103	118 868
Current assets	408 474	18 689	427 163
Segment assets	512 239	33 792	546 031
Investments accounted for using the equity method	20	0	20
TOTAL ASSETS	512 259	33 792	546 051
Non-current liabilities	69 209	2 383	71 592
Current liabilities	337 887	10 676	348 563
Segment liabilities	407 096	13 059	420 155
TOTAL LIABILITIES	407 096	13 059	420 155
Other segment information
Six months ended June 30, 2021 (unaudited)
Capital expenditure - Intangible assets and "Property, Plant
and Equipment"	1 087	377	1 464
Capital expenditure - Right-of-use assets	1 306	146	1 452
Depreciation of property, plant and equipment	3 376	762	4 138
Amortization and impairment of intangible assets	645	129	774
Salary related expenses	65 840	7 654	73 494
Non-cash expenses/(income)	1 213	119	1 332
Headcount at year-end (EFT)	1 298	214	1 512

(EUR 000) Six months ended June 30, 2022 (unaudited)	Proton Therapy and Other Accelerators	Dosimetry	Group
Non-current assets	95 386	23 746	119 132
Current assets	409 522	21 129	430 651
Segment assets	504 908	44 875	549 783
Investments accounted for using the equity method	270	0	270
TOTAL ASSETS	505 178	44 875	550 053
Non-current liabilities	63 997	3 990	67 987
Current liabilities	372 520	12 299	384 819
Segment liabilities	436 517	16 289	452 806
TOTAL LIABILITIES	436 517	16 289	452 806
Other segment information
Six months ended June 30, 2022 (unaudited)
Capital expenditure - Intangible assets and "Property, Plant and Equipment"	1 809	1 240	3 049
Capital expenditure - Right-of-use assets	1 110	258	1 368
Depreciation of property, plant and equipment	3 548	906	4 454
Amortization and impairment of intangible assets	629	103	732
Salary expenses	79 419	8 334	87 753
Non-cash expenses/(income)	-6 316	1 683	-4 633
Headcount at year-end (EFT)	1 422	246	1 668

5. Earnings per share

5.1. 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, 2021 (unaudited)	June 30, 2022 (unaudited)
Earnings attributable to parent equity holders (EUR 000)	-1 935	-1 717
Weighted average number of ordinary shares	29 471 388	29 175 732
Basic earnings per share (EUR per share)	-0.0657	-0.0589

5.2. 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 2021 and 2022, 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, 2021 (unaudited)	June 30, 2022 (unaudited)
Weighted average number of ordinary shares	29 471 388	29 175 732
Weighted average number of stock options	179 075	1 110 827
Average share price over period	15.7	16.6
Dilution effect from weighted number of stock options	40 966	1 006 429
Weighted average number of ordinary shares for diluted earnings per share	29 512 354	30 182 161
Earnings attributable to parent equity holders (EUR 000)	-1 935	-1 717
Diluted earnings per share (EUR per share)	-0.0657	-0.0589

(*) 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).

6.1. SEASONALITY OR CYCLICALITY OF INTERIM OPERATIONS

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

6.2. CAPITAL EXPENDITURE AND COMMITMENTS

(EUR 000) Six months ended June 30, 2021 (unaudited)	Property, plant and equipment	Right of use	Intangible	Goodwill
Net carrying amount at January 1, 2021	18 329	29 266	4 527	3 821
Additions	1 202	1 452	262	0
Disposals	-1	-100	0	0
Currency translation difference	20	41	2	0
Depreciation/amortization and impairment	-1 736	-2 402	-775	0
Net carrying amount at June 30, 2021 (unaudited)	17 814	28 257	4 016	3 821

(EUR 000) Six months ended June 30, 2022 (unaudited)	Property, plant and 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 (unaudited)	18 703	28 376	4 798	12 098

In 2022, the group mainly invested in general asset maintenance and in the research and development facility. The largest part of additions to Right of Use assets relates to the lease of new vehicles. The goodwill increases with an amount of EUR 8.3 million following acquisition of Modus Medical Devices Inc. based in Canada.

An intangible of EUR 0.6 million has been temporarily recognized for the backlog acquired. In line with the IFRS standards, a more detailed allocation of the purchase price will be prepared within one year of the acquisition.

The loss for the 6-month period ending June 30, 2022 (unaudited) 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 2022 interim condensed financial statements.

6.3. OTHER LONG-TERM ASSETS

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Long-term receivables on contracts in progress	511	512
Research tax credit	11 932	10 965
Subordinated loan to NHA	1 520	1 520
Subordinated bond to proton therapy customers	4 414	4 813
Financial notes granted to proton therapy customers	4 772	4 646
Loan to shareholders (Note 6.18.3)	5 807	5 807
Long term deposits	11 469	11 803
Receivable from settlement of temporary association	0	2 510
Other assets	607	1 499
TOTAL	41 032	44 075

The other long-term assets have slightly increased compared to December 31, 2021 (audited).

The main driver of the increase is a long-term receivable acquired as part of the dissolution of the Temporary Association with Mantovani (EUR 2.5 million). The receivable will be fully collected by 2028. This results in minor impacts in the income statements including the receipts of interests, the unwinding of the discounted asset and the net expected net gain

6.4. INVENTORIES

Work in progress relates to production of inventory for which a customer has not yet been secured, while contracts in progress (note from the negotiation with the curator of Mantovani

IBA also recognised a long term receivable for EUR 1 million being retained by a customer for the construction of a building on a Proton Therapy project.

The decrease of the research tax credit represents the tax credit to be obtained on the expenditures in research and development for the current 6-months period (compared to 12 months as at December 31, 2021 (audited)).

6.5) relate to production for specific customers in performance of a signed contract.

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Raw materials and supplies	79 210	95 011
Finished products	2 424	2 990
Work in progress	4 903	7 402
Write-off of inventories (-)	-11 663	-12 054
Inventories and contracts in progress	74 874	93 349

6.5. CONTRACT ASSETS AND CONTRACT LIABILITIES

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Costs to date and recognized revenue	369 685	342 775
Less : progress billings	-334 046	-308 356
Contracts assets	35 639	34 419
Contract liabilities	-208 112	-220 718
Net amounts on contracts in progress	-172 473	-186 299

6.6. OTHER RECEIVABLES

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Non-trade receivables and advance payments	18 633	23 895
Deferred charges	5 192	6 002
Accrued income related to maintenance contracts	11 283	15 346
Accrued income other	215	269
Current income tax receivables	3 298	2 917
Other current receivables	2 868	3 426
TOTAL	41 489	51 855

The other receivables have increased compared to December 31, 2021 (audited). The main drivers of this increase are the increase of advance payments to suppliers for EUR 6.4 million, the increase of maintenance

revenues recognized on a linear basis of EUR 4.1 million and the increase of VAT to be received for EUR 0.2 million, partially offset by a decrease of a grant for EUR 1.4 million.

6.7. 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)	June 30, 2021 (unaudited)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Bank balances and cash	145 277	197 370	174 230
Accounts with restrictions shorter than 3 months	-	0	7 260
Short-term bank deposits	-	1 900	20 842
CASH AND CASH EQUIVALENTS	145 277	199 270	202 332

At June 30, 2022 (unaudited), the restricted cash represents cash that Management has repatriated, a EUR 7.3 million payment from its Russian subsidiary. Given the current environment, the Belgian authorities have temporarily blocked these moneys as part of a review measure under the current embargo environment. These moneys are held on an account that is legally held and controlled by IBA. Based on a detailed analysis, including with outside council, Management believes that they can respond to any inquiries from the authorities and have these funds unblocked within a reasonable timeframe for cash and cash equivalents, therefore Management concluded that they have a documented and reasonable basis to account for these funds under cash and cash equivalents.

6.8. ORDINARY SHARES, SHARE PREMIUM AND TREASURY SHARES

	Share
	Number of shares	Issued capital stock (EUR 000)	Premium (EUR 000)	Treasury shares (EUR 000)	Total (EUR 000)
Balance as at December 31, 2021 (audited)	30 219	42 413	42 836	-12 613	72 636
Stock options exercised	0	0	0	0	0
Capital increases (other)	0	0	0	0	0
Purchase of treasury shares	0	0	0	-5 160	-5 160
Sale of treasury shares	0	0	0	0	0
Balance as at June 30, 2022 (unaudited)	30 219	42 413	42 836	-17 773	67 476

During the 6-month period, the Group bought 302 451 treasury shares.

6.9. MOVEMENT ON BANK AND OTHER BORROWINGS

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Non-current	29 937	26 937
Current	9 734	9 734
Total	39 671	36 671
Opening amount	56 731	39 671
New borrowings	0	0
Borrowings converted to grants	-4 384	0
Repayment of borrowings	-12 984	-3 000
Currency translation difference	308	0
Closing balance	39 671	36 671

As at June 30, 2022 (unaudited) the bank and other borrowings include unsecured subordinated bonds from the Belgian Walloon region investment fund, S.R.I.W. for a total of

EUR 13.7 million, an unsecured subordinated bond from the Belgian Federal investment fund, S.F.P.I. for EUR 5 million, a 5-year syndicated term loan for EUR 18 million

As at June 30, 2022 (unaudited), the Group also benefits from unused revolving (short term) credit facilities for EUR 37 million and unused overdraft facilities in India and China for a total of EUR 6.4 million.

In the 6-month period ending June 30, 2022 (unaudited), the Group repaid EUR 3 million on the 5-year term loan (EUR 18 million outstanding at June 30, 2022 (unaudited)).

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

The S.R.I.W. and S.F.P.I. are two leading 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 IBA SA's level of equity, which was met as at December 31, 2021 (audited) and June 30, 2022 (unaudited).

Bank credit facilities

The existing bank facilities at the level of IBA SA were refinanced in 2019 by EUR 67 million syndicated facilities comprising (i) a EUR 30 million amortizing term loan (5 years maturity, out of which EUR 3 million were repaid in the reporting period ending June 30, 2022 (unaudited)) and (ii) EUR 37 million revolving credit facilities (3 years, with extension options up to 5 years, unused to date).

The financial covenants applying to these facilities consist of (a) a maximum net senior 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 December 31, 2021 (audited) and June 30, 2022 (unaudited).

In addition, the bank overdraft facility in India (borrower: IBA Particle Therapy India Private Limited) was maintained at INR 130 million with a maturity to the end of 2021 in order to support local working capital fluctuations (undrawn as of June 30, 2022 (unaudited)Similarly in China, the overdraft facility that was set up in 2019 (borrower: Ion Beam Applications Co. Ltd) was maintained for an amount of CNY 35 million (undrawn as of June 30, 2022 (unaudited)).

Available credit facilities

As at June 30, 2022 (unaudited), the Group has at its disposal credit facilities up to EUR 80.3 million of which 45.68% are used to date.

(EUR 000)	Credit facilities total amount	Credit facilities used	Credit facilities available
S.R.I.W. - subordinated	13 671	13 671	0
S.F.P.I. - subordinated	5 000	5 000	0
5 years Term loan	18 000	18 000	0
"PPP" Loans	0	0	0
Short-term credit facilities	43 610	0	43 610
TOTAL	80 281	36 671	43 610

Utilized	credit	facilities	are	as	follows:
(EUR 000) FLOATING RATE			December 31, 2021 (audited)	June 30, 2022 (unaudited)
Repayment within one year				6 000	6 000
Repayment beyond one year				15 000	12 000
TOTAL FLOATING RATE			21 000		18 000
FIXED RATE
Repayment within one year				3 734	3 734
Repayment beyond one year				14 937	14 937
TOTAL FIXED RATE				18 671	18 671
TOTAL				39 671	36 671

Unutilized credit facilities are as follows:

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
FLOATING RATE
Repayment within one year	1 543	1 583
Repayment beyond one year	41 865	42 027
TOTAL FLOATING RATE	43 408	43 610
FIXED RATE
Repayment within one year	0	0
Repayment beyond one year	0	0
TOTAL FIXED RATE	0	0
TOTAL	43 408	43 610

6.10. LEASE LIABILITIES

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Non-current	23 943	22 376
Current	5 362	5 695
TOTAL	29 305	28 071

Changes in financial lease liabilities as follows:

(EUR 000)	Building	Vehicles	Machinery	Hardware	Total
As at January 1, 2021	24 808	4 269	50	268	29 395
Additions	1 824	3 265	0	99	5 188
Accretion of interest	518	108	1	18	645
Disposal	-26	-32	0	-48	-106
Payments	-3 568	-2 269	-25	-112	-5 974
Currency translation difference	149	1	1	6	157
As at December 31, 2021 (audited)	23 705	5 342	27	231	29 305
As at January 1, 2022	23 705	5 342	27	231	29 305
Additions	474	858	14	129	1 475
Accretion of interest	0	0	0	0	0
Disposal	-1	-59	-1	-100	-161
Payments	-1 605	-1 166	-14	-41	-2 826
Currency translation difference	274	0	0	4	278
As at June 30, 2022 (unaudited)	22 847	4 975	26	223	28 071

6.11. PROVISIONS

(EUR 000)	Environment	Warranties	Litigation	Defined employee benefits	Other employee benefits	Other	Total
As at January 1, 2022	110	4 678	140	5 444	279	4 227	14 878
Additions (+)	0	2 139	0	0	59	415	2 613
Write-backs (-)	0	-490	0	-453	0	-29	-972
Utilizations (-)	0	-594	0	0	-60	-464	-1 118
Reclassifications	0	0	0	0	0	0	0
Actuarial (gains)/losses generated during the
year	0	0	0	-2 953	0	0	-2 953
Currency translation difference	0	5	0	0	2	217	224
Total movement	0	1060	0	-3406	1	139	-2206
As at June 30, 2022 (unaudited)	110	5 738	140	2 038	280	4 366	12 672

Until the end of June 2021, IBA managed its pension plans through Insurance company Intégrale (now Monument Re). Given this entity started having solvency problems and in the end was put under supervision of the National Bank of Belgium, IBA prepared a transfer of its pension assets and moved to AG per the 1st of July 2021. For a variety of reasons, the effective transfer of the plan assets occurred several months later. In addition, management opted to account for the change in fair value of the plan asset at the same time of the effective transfer. As the result of the above, the plan changes were accounted for as January 1st 2022.

The Intégrale Defined Contribution plans were converted into Cash Balance plans; this was necessary to be able to continue guaranteeing the same conditions for the employees, both the actives and the inactives. A consequence of this change-over to a cash balance plan was that the plan return is guaranteed up until the retirement age, for all past and present employees included in the plan.

The effect of the transfer of the plan is reported in the June 2022 numbers as the transfer of the plan was only finalized early 2022. The P&L impact amounts to around EUR 2 million, which is composed of the normal budget premiums (the standard contributions) for an amount of around EUR 0.7 million and a past service cost of EUR 1.3 million. The latter, a one-off impact, is triggered by the fact that additional guarantees until retirement have been granted to all employees, actives and inactives, see previous paragraph and has been recognised in other operating expenses (note 6.13). The pension provision as such decreased significantly, with EUR 3.4 million, mainly because of the increased discount factor used to discount both the plan assets and the defined benefit obligation. Both these components of the provision increased though, the first as a result of the additional contributions made (EUR 2.5 million), the latter because of the inclusion of the obligation for the inactive ('deferred') population (EUR 2 million). The inclusion of the deferred population largely explains the impact that is shown in OCI (EUR 2.9 million).

The provisions for warranties have increased as the utilisations (EUR 0.6 million) and reversals (EUR -0.5 million) in relation to Proton therapy and other accelerators were lower than the additional provisions made during the period (EUR 2.1 million).

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

6.12. OTHER PAYABLES AND ACCRUALS

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Payroll debts	23 363	28 019
Accrued charges	1 707	1 278
Accrued interest charges	45	0
Deferred income related to maintenance contracts	11 942	18 848
Capital grants	6 589	3 650
Non-trade payables	8 459	10 582
Unpaid dividend	0	5 599
Refund Liability on the contract with CGN	5 000	5 000
Other	1 883	2 086
TOTAL	58 988	75 062

The contract with CGN, explained in detail in the Group consolidated financial statements for 2020, contains an element of variable consideration in the form of an unconditional and irrevocable performance bond linked to the execution of certain contractual obligations related to the transfer of the license. The customer can draw upon this bond for a maximum value of EUR 15 million. Considering the facts and circumstances of the agreement, IBA's management is of the view that uncertainty associated with the exercise of the performance bond by the customer constitutes a constraint on the recognition of the variable consideration, as the amount of variable consideration is highly susceptible to factors outside the entity's influence (i.e., it depends on action of a third party). Accordingly, the amount of consideration subject to the performance bond (EUR 15 million) was recognized as a refund liability until the uncertainty associated with the variable consideration is resolved. It was reduced with EUR 5 million in 2021, and it has been mutually agreed to reduce it further to EUR 5 million in December 2022 in the event of no claim. At the very latest the bond will expire at the earliest of the shipment of the equipment

components or 48 months from the effective date of the agreement (August 25, 2024).

The "Other" payable at June 30, 2022 (unaudited) includes advances of EUR 1.8 million received from the Walloon Region of Belgium and other miscellaneous payable amounting to EUR 0.3 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.

6.13. OTHER OPERATING EXPENSES

The other operating expenses mainly the oneoff past service cost of EUR 1.3 million related to the pension plan transfer described in note 6.11.

The remaining other operating expenses include a cost of the share-based payments for the option plans issued in 2020 and 2021 and bad debt for a total amount of EUR 0.5 million each.

6.14. INCOME TAX

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

(EUR 000)	June 30, 2021 (unaudited)	June 30, 2022 (unaudited)
Current taxes	-1 452	-2 299
Deferred taxes	360	285
TOTAL	-1 092	-2 014

6.15. 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

6.16. EMPLOYEE BENEFITS

For more information on employee benefits see annual report note 28 as movements for contingent asset. The best estimate of Management for the insurance indemnity to be received is EUR 0.5 million.

The liquidation of Rutherford Estates Ltd described in note 2.3.3. is still ongoing and could result in IBA recovering some assets but given the high degree of uncertainty, the Group cannot reliably estimate the probability of such recovery nor the amount of the potential positive outcome.

the six months period ending June 2022 in employee benefits are not significant.

6.17. PAID AND PROPOSED DIVIDENDS

A dividend of EUR 0.19 per share was approved at the Ordinary General Meeting of June 8, 2022.

This dividend was paid in July 2022.

6.18. RELATED PARTY TRANSACTIONS

6.18.1 CONSOLIDATED COMPANIES

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

6.18.2 TRANSACTIONS WITH AFFILIATED COMPANIES

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

(EUR 000)	June 30, 2021 (unaudited)	June 30, 2022 (unaudited)
ASSETS
Receivables
Long-term receivables	1 520	1 520
Trade and other receivables	424	443
TOTAL RECEIVABLES	1 944	1 963
INCOME STATEMENT
Sales	674	1 909
TOTAL INCOME STATEMENT	674	1909

6.18.3 SHAREHOLDER RELATIONSHIPS

The following table shows IBA shareholders at June 30, 2022 (unaudited)

	Number of shares	%
Sustainable Anchorage SRL	6 204 668	20.53%
IBA Investments SCRL	51 973	0.17%
IBA SA	1 066 329	3.53%
IB Anchorage	348 530	1.15%
IBA sa on behalf of ESP Holders	21 180	0.07%
UCL	426 885	1.41%
Sopartec SA	180 000	0.60%
SRIW SA	715 491	2.37%
SFPI SA	58 200	0.19%
Belfius Insurance SA	1 189 196	3.94%
FUP Institute of RadioElements	1 423 271	4.71%
Paladin Asset Mgmt	768 765	2.54%
BlackRock, Inc.	407 194	1.35%
Norges Bank Investment Management	1 133 108	3.75%
Kempen Capital Management NV	875 388	2.90%
BNP Paris	528 425	1.75%
Public	14 820 115	49.04%
TOTAL	30 218 718	100.00%

The Group had the following transactions with its shareholders:

(EUR 000)	June 30, 2021 (unaudited)	June 30, 2022 (unaudited)
ASSETS
Receivables
Long-term receivables	0	5 807
Trade and other receivables	0	65
TOTAL RECEIVABLES	0	5 872
LIABILITIES
Payables
Bank and other borrowings	20 406	18 671
Trade and other payables	53	0
TOTAL PAYABLES	20 459	18 671
INCOME STATEMENT
Sales	0	0
Costs (-)	0	0

To the best of the Company's knowledge, there were no other relationships or special agreements among the shareholders at June 30, 2022 (unaudited).

6.19. EVENTS AFTER THE BALANCE SHEET DATE

• In August, IBA announced a multi-year research collaboration on ConformalFLASH® Proton Therapy with Fred Hutchinson Cancer Center and the University of Washington
• In August, IBA qualified as the only supplier for the second round of a public tender launched by the Spanish Ministry of Health to provide ten proton therapy units across the country
• In August, the company also announced the sale of its fourth Cyclone® IKON, a new high-energy accelerator for the production of novel isotopes in theranostics and targeted therapies, to CNRT in China
• Finally, also in August, IBA signed a strategic alliance in its Dosimetry business with ScandiDos, acquiring a 9.1% stake in the Swedish company

7.1. FIGURES AND SIGNIFICANT EVENTS:

(EUR 000)	H1 2022	H1 2021	Variance	Variance %
Total Net Sales	160 032	137 183	22 849	16.7%
Proton Therapy	103 026	70 473	32 553	46.2%
Other Accelerators	30 110	40 285	-10 175	-25.3%
Dosimetry	26 896	26 425	471	1.8%
REBITDA*	14 065	5 745	8 320	144.8%
% of Sales	8.8%	4.2%
REBIT*	4 564	674	3 890	577.2%
% of Sales	2.9%	0.5%
Profit Before Tax	297	-843	1 140	135.2%
% of Sales	0.2%	-0.6%
NET RESULT*	-1 717	-1 935	218	11.3%
% of Sales	-1.1%	-1.4%

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

REBIT: Recurring earnings before interest and taxes

Business Highlights

• Three Proteus®ONE systems sold in the US and Europe
• First project under the IBA-CGNNT partnership signed for a Proteus®PLUS¹ system (three rooms) in China
• In Other Accelerators, 21 new systems sold in H1 and one further system sold post-period end with pipeline remaining promising
• One new installation in PT and nine installations in Other Accelerators started in H1 despite ongoing pandemicassociated restrictions in some geographies, with stable service business
• Two proton therapy centers started to generate service revenues over the period in the USA and Asia
• Four-year collaboration signed with University Medical Center Groningen (UMCG) to investigate the potential of IBA's ConformalFLASH®² technology for the treatment of early-stage breast cancer
• Acquired Modus Medical Devices Inc. (Modus QA), strengthening IBA's

Dosimetry operations in North America and adding one of the most comprehensive dosimetry "phantom" offerings on the market

• Launched new low energy compact cyclotron, the Cyclone® KEY
• Announced a partnership agreement with Tractebel to support IBA's customers with their proton therapy design and construction projects
• Launched the ConformalFLASH® Alliance, the first collaboration platform between academia and industry to bring ConformalFLASH® proton therapy to the clinic

Financial Highlights

• Total H1 Group revenues of EUR 160 million, up 17% on the same period last year, largely due to increased activity and backlog conversion
• Gross margin was 39%, an improvement versus 33% last year in absolute value as well as percentage of sales largely thanks to increased activity in Proton Therapy (PT) equipment, in particular in US and Asia, a high-margin product mix and the indemnities recognized following the Rutherford bankruptcy. The gross margin also positively benefited from forex impacts, thanks to the strengthening of USD

¹ Proteus®PLUS and Proteus®ONE are brand names of Proteus 235

² ConformalFLASH® is a registered brand of IBA's Proton FLASH irradiation solution currently under research and development phase.

• Strong order intake of EUR 175 million for Proton Therapy and Other Accelerators, with revenues up 20%
• PT equipment revenues improved strongly, up 115% to EUR 51.6 million as backlog conversion accelerated
• Order intake for Dosimetry remained strong at EUR 30 million, representing an increase of 11% versus last year and highlighting the resilience of this business unit
• Whilst order intake remained strong, Other Accelerators equipment revenue decreased by 35% to EUR 19.5 million from EUR 30.1 million last year, due to backlog conversion still being impacted by COVID-19 restrictions and also by a few supply chain challenges. It is expected that some of these challenges will be resolved in H2, allowing for a sharp increase in new installations
• Continued strong performance of Services with PT revenue increasing 11% versus H1 2021
• Equipment and upgrade backlog reached an all-time high of EUR 497 million, with record overall equipment and services backlog of EUR 1.2 billion
• Positive H1 2022 REBIT of EUR 4.6 million (H1 2021: EUR 0.7 million) reflecting a high level of order intake and contract execution, a growing service business and indemnities following Rutherford bankruptcy
• Total Group net loss of EUR 1.7 million (H1 2021: EUR 1.9 million)
• Very strong balance sheet with EUR 202 million gross cash and EUR 137 million net cash position. EUR 37 million undrawn short-term credit lines still available
• 2021 share buyback program completed in March 2022 for total of 302,451 shares

7.2. OPERATING REVIEW

7.2.1 Proton Therapy and Other accelerators

(EUR 000)	H1 2022	H1 2021	Variance	Variance %
Net sales	133 136	110 758	22 378	20.2%
Proton Therapy	103 026	70 473	32 553	46.2%
Other Accelerators	30 110	40 285	-10 175	-25.3%
REBITDA	12 211	2 021	10 190	504.2%
% of Sales	9.2%	1.8%
REBIT	3 523	-2 167	5 690	262.6%
% of Sales	2.6%	-2.0%

(EUR 000)	H1 2022	H1 2021	Variance	Variance %
Equipment Proton Therapy	51 611	23 965	27 646	115.4%
Equipment Other Accelerators	19 499	30 101	-10 602	-35.2%
Total equipment revenues	71 110	54 066	17 044	31.5%
Services Proton Therapy	51 415	46 508	4 907	10.6%
Services Other Accelerators	10 611	10 184	427	4.2%
Total service revenues	62 026	56 692	5 334	9.4%
Total revenues Proton Therapy & Other Accelerators	133 137	110 758	22 379	20.2%
Service in % of segment revenues	46.6%	51.2%

Overview

• Total net sales were EUR 133 million, up 20% versus H1 2021, reflecting strong order intake in both businesses with improving backlog conversion in Proton Therapy
• PT equipment revenues grew strongly, up 115% to EUR 51.6 million, with acceleration of backlog conversion
• One Proteus®PLUS system signed in China through CGNNT and three Proteus®ONE systems sold in the US and Europe, highlighting the strong momentum in these territories
• Other Accelerators equipment revenue declined 35% year-on-year to EUR 19.5 million due to delays with backlog conversion as a result of pandemic restrictions and some supply chain challenges. It is expected that this improves in the second half with a strong increase in installations
• Order intake in Other Accelerators was strong with 21 new sales in the period and one further sale post-period, with a very encouraging pipeline
• Continued strong performance for Services with total revenues of EUR 62 million, an increase of 9% as two new PT centers started treating patients over the period
• REBIT of EUR 3.5 million, the improvement reflecting the increase in activity

Proton Therapy

The resurgence in the proton therapy market has continued throughout 2022 and IBA has maintained its market leading position with a 60% market share, selling four new systems across Europe, the US and China (through CGNNT). Alongside this, there has been a strong acceleration in backlog conversion in spite of some remaining travel difficulties as a result of ongoing pandemic restrictions. There are currently 24 projects under production or installation (including CGNNT), consisting of nine Proteus®PLUS and 15 Proteus®ONE systems and the pipeline remains highly active with several leads across key geographic regions.

PT Services continued to perform strongly with 11% growth. There are now 38 IBA PT sites generating service revenues worldwide with the first patients being treated at Taipei Proton Therapy Center and Kansas University Medical Center during the period and backlog remains very high at EUR 661 million, decreasing versus last year partly as a result of the bankruptcy of the Rutherford centers in the UK. Services remain an increasingly important recurrent revenue stream for IBA, providing us with visibility on sustainable profitable growth.

IBA is looking at ways to better support customers with the infrastructure element of proton therapy projects. In March, a partnership agreement was signed with Tractebel, a global engineering company, to support IBA's customers through the design and building of their proton therapy projects.

Investment in technological advancements to drive the future growth of PT is a key priority for IBA and we continue to collaborate with key partners to continue to accelerate this. In 2022 to date IBA has made significant progress with its ConformalFLASH® technology. In April, a four-year collaboration was signed with University Medical Center Groningen (UMCG) to investigate the potential of the technology for the treatment of early-stage breast cancer.

In June, the ConformalFLASH® Alliance was launched to accelerate the delivery of the technology to patients. The Alliance is the first collaboration of its kind between academia and industry. A further collaboration on the technology was recently announced, involving IBA, Fred Hutchinson Cancer Center and the University of Washington. As part of the agreement, IBA will equip the proton therapy system and the proton gantry treatment room at the Fred Hutchinson Cancer Center with ConformalFLASH® research functionality, which will enable preclinical research on FLASH therapy.

Elsewhere, DynamicARC® developments are ongoing at Beaumont Proton Therapy Center. A recent presentation by UMCG at PTCOG showed an increased relevance for PT when using DynamicARC® for head and neck cancers.

IBA is also moving forward in hadron therapy using carbon ions through its subsidiary Normandy Hadrontherapy (NHa) which is currently installing the 400 MeV (megaelectron-volts) multi-particle superconducting isochronous cyclotron in Caen, France.

The company has an ongoing commitment to education and promoting the next steps for proton therapy and hosted its latest Proteus User Meeting in June in Belgium. This year's event gathered 163 participants, representing more than 60 clinical institutions from 17 countries and key industrial partners like Elekta and RaySearch, providing an opportunity to share knowledge and insights.

The importance of training and education is a key aspect of the way IBA relates to its customers. Post-period end, IBA signed a collaboration agreement with Apollo Hospitals Enterprise Ltd, to provide proton therapy training and education programs for IBA customers in Asia.

Finally, post-period end, in August, IBA became the only proton therapy equipment supplier to qualify for the second round of a significant public tender launched by the Spanish Ministry of Health to equip the country with ten additional proton therapy units.

Other Accelerators

Order intake in the Other Accelerators business was very strong in the first half with 21 systems sold in H1 globally. A further system has also been sold after the end of the period and the pipeline is highly active. Backlog conversion saw a slowdown, however, as a result of ongoing pandemic restrictions and supply chain challenges coupled with the nature of the long lead times. Some of the timing issues are expected to be resolved in the coming months, which should result in an increase in installations. While nine installations started during the period, 18 are expected to start in the second half. The services part of the business continued to perform well, growing by 4%.

The growth of Industrial Solutions is global and is mainly driven by sterilization requirements for Disposable Medical Devices and Bio-Processors, growing from 7 to 10% per year. Today ~90% of this industry relies on two sterilization modalities: ethylene oxide (EtO) (~50%) and Gamma (~40%). Gamma is under supply pressure due to the closure of several nuclear reactors around the world, resulting in a significant shortage and a strong increase in lead times and prices. Ethylene oxide has been adversely affected by toxicity issues and several site closures due to the detection of residues.

These issues have meant that the sterilization market has needed to find alternative solutions like X-ray and electron beam sterilization that are enabled by the IBA Rhodotron®. This is driving increased order volumes which are up strongly and creating an exciting opportunity for the future growth of this business.

Radiopharmaceutical market demand has also continued to increase and IBA continued to collaborate with NorthStar to install beam lines to produce isotopes using a high-energy Ebeam accelerator.

Over the last few years, the increasing demand for diagnosis solutions and theranostics has driven sales of radiopharmaceutical accelerators. In January, IBA launched a new low-energy and compact-size cyclotron, the Cyclone® KEY. This new machine is enabling small and medium-sized hospitals to produce their own radiopharmaceutical products inhouse, whilst providing more widespread global access, particularly in emerging countries, to diagnostic solutions in oncology, neurology and cardiology.

IBA also sold a high-energy Cyclone® IKON in China, confirming the strong world-wide interest in the production of new isotopes for medical applications

The strategic R&D partnership with SCK CEN (Belgian Nuclear Research Center) to enable the production of Actinium-225 (225-AC) continues with several technological achievements and strategic milestones currently in progress.

7.3. DOSIMETRY

(EUR 000)	H1 2022	H1 2021	Variance	Variance %
Net sales	26 896	26 425	471	1.8%
REBITDA	1 854	3 724	-1 870	-50.2%
% of Sales	6.9%	14.1%
REBIT	1 041	2 841	-1 800	-63.4%
% of Sales	3.9%	10.8%

Overview

• Sales in the first half were EUR 26.9 million, up 2% driven by the Modus acquisition, conventional radiation therapy and medical imaging performance despite the impact of the European sanctions on Russia and the continuing partial lockdown in China
• Order intake remained strong at EUR 30 million, an increase of 11% versus H1 last year
• Backlog reached EUR 20.8 million, growing 27% from the end of 2021 (EUR 16.4 million)
• REBIT was EUR 1 million, a decrease of 63% versus the same period last year as a result of inflation, additional investment in supply chain management to support future orders and high cost one-off purchases related to the shortage of electronic components in the worldwide market
• The acquisition of Modus QA in April strengthened Dosimetry's operations in

7.4. FINANCIAL REVIEW

Group revenue in the period was EUR 160 million, a 17% increase from H1 2021, largely driven by strong order intake and improved backlog conversion, in spite of ongoing macro challenges. Order intake has been very high across all business units in 2022, particularly driven by the increasing adoption of E-beam/Xray solutions for sterilization. Backlog conversion remains somewhat impacted by COVID-19 restrictions, particularly in the Other Accelerators business but an increase in installations is expected in the second half of the year, with the number of installations starting over the period expected to double vs H1.

Gross profit as a percentage of sales was 39.1% (H1 2021: 32.9%), with the improvement driven strongly by product mix, forex gains on operations in USD and the one-off recognition of indemnities following the Rutherford bankruptcy. The 31% increase in operating expenses reflects a rise in activity and large investments for future growth and also reflects the many current macro-economic challenges, alongside increasing levels of inflation. Sales and marketing activities have started to return to pre-pandemic levels as restrictions have North America and added one of the most comprehensive dosimetry QA "phantom" offerings on the market

In March, IBA and Elekta signed a collaborative agreement to optimize QA solutions. Radiation therapy departments and clinics using Elekta's treatment delivery systems will now be able to benefit from QA solutions that are designed for these devices by streamlining workflows and improving access to measurement data.

Post-period end, IBA continued to strengthen its position in the Dosimetry market with the announcement of a strategic alliance with ScandiDos under which IBA subscribed to the company's entire new share issue, acquiring 9.1% of the company. This collaboration will also include, but will not be limited to, distribution of products in selected markets, marketing efforts and product development.

eased worldwide, enabling travel and business congresses. G&A and R&D experienced peaks as the Group utilized high cash reserves to invest heavily in supply chain reinforcement, infrastructure and new developments for future growth such as digitalization projects and product lifecycle management, but also to face more demanding compliance requirements such as the European Medical Device Regulation, with a significant number of new hires.

The recurring operating profit before interest and taxes (REBIT) line stood at EUR 4.6 million (H1 2021: EUR 0.7 million), driven by the revenue increase and margin improvement, somewhat offset by the increase in operating expenses detailed above.

Other operating loss of EUR 2.4 million included mainly share-based payment plan costs, the adjustment of past service costs on pension funds and some write-offs. The net financial loss of EUR 1.9 million predominantly included net interest expenses and forex and hedging impacts in particular on the USD, CNY and RUB.

As a result of the above, IBA reported a net loss of EUR 1.7 million (H1 2021: net loss EUR 1.9 million).

Operating cash flow generated was EUR 25.2 million, up strongly from EUR 11.2 million last year affected by large down payments from customers and commitments to suppliers in order to secure inventory.

Cash flow used in investing activities was EUR 11 million driven by increasing acquisition of assets as part of infrastructure and R&D investments, as well as by the acquisition of Modus.

7.5. OUTLOOK

IBA's strong performance across all business lines has continued throughout 2022. Order intake has rapidly accelerated across the business and our pipeline remains extremely active, particularly in the US and Asia. Looking ahead, we see the potential for order intake to further accelerate, especially in the Proton Therapy and Sterilization businesses, further bolstering our high backlog and providing us with great visibility for future growth. In addition, our strong balance sheet will support us as we seek value-enhancing opportunities to further drive sustainable growth. We have launched a extensive investment plan to bolster our infrastructure, supply chain and logistics, reinforce our digital ambitions and continue to maintain our market-leading technology.

Although the Group is in a strong position, there remain several challenging external factors, which imply that caution is warranted. The

7.6. SUBSEQUENT EVENTS

• In August, IBA announced a multi-year research collaboration on ConformalFLASH® Proton Therapy with Fred Hutchinson Cancer Center and the University of Washington
• In August, IBA qualified as the only supplier for the second round of a public tender launched by the Spanish Ministry of Health

Cash flow used in financing activities was EUR 11.8 million, which included repayments on financial borrowings and the acquisition of treasury shares.

The balance sheet continued to remain strong, with a record gross cash position at period end of EUR 202 million and a net cash position of EUR 137 million. IBA has EUR 37 million undrawn short-term credit lines still available and all bank covenants have been complied with.

geopolitical situation in Europe remains complex and has resulted in supply chain and inflationary pressures for businesses around the globe. IBA is managing these issues proactively, expanding its roster of suppliers, increasing its manufacturing capacity and enhancing its logistics operations through internal hires and external partners and updating contracts with customers where necessary, however, there is uncertainty with regards to how the situation will continue to unfold.

The nature of IBA's business is such that it operates in long cycles and as a result of this and the above factors it is not practicable to give detailed financial guidance until there is more clarity and predictability. As soon as IBA is able to provide reliable guidance to the market it will do so.

to provide ten proton therapy units across the country

• In August, the company also announced the sale of its fourth Cyclone® IKON, a new high-energy accelerator for the production of novel isotopes in theranostics and targeted therapies, to CNRT in China
• Finally, also in August, IBA signed a strategic alliance in its Dosimetry business

with ScandiDos, acquiring a 9.1% stake in the Swedish company

7.7. 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 management report includes a fair review of important events and significant transactions with related parties for the first half of 2022 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.

7.8. CORPORATE GOVERNANCE

On the occasion of the 2022 Annual General Meeting, the following mandates were renewed at the level of the management of the Company:

• ➢ The mandate of Saint-Denis SA was renewed renewed and;
• ➢ The mandate of Hedvig Hricak 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, 2021 (unaudited)	June 30, 2022 (unaudited)
EBIT = Segment result (Note 4)	296	2 182
Other operating expenses (+)	378	2 382
Other operating income (-)	0	0
REBIT	674	4 564
Depreciation and impairment of intangible and tangible assets (+)	4 913	5 039
Write-offs on receivables and inventory (+/-)	158	4 462
REBITDA	5 745	14 065

(EUR 000)	December 31, 2021 (audited)	June 30, 2022 (unaudited)
Long-term borrowings and lease liabilities (+)	53 880	49 313
Short-term borrowings and lease liabilities (+)	15 096	15 429
Cash and cash equivalents (-)	-199 270	-202 332
Net financial debt	-130 294	-137 590

Auditor's report on the IFRS interim condensed consolidated financial statements at June 30, 2022