Annual Report • Apr 10, 2017
Annual Report
Open in ViewerOpens in native device viewer
Viggo Mommaerts, treated with proton therapy
IBA at a glance 1 | A message from Olivier Legrain 2 | Proton therapy 4 | Dosimetry 18 RadioPharma solutions 20 | Industrial & sterilization solutions 22 | Sustainability 24 Governance 32 | Management report 35 | IFRS consolidated financial statements for the year ended December 31, 2016 67 | IBA SA annual financial statements 144 | General information 148 IBA Stock market and shareholders 152
Proton therapy is considered to be the most advanced form of radiation treatment available in the fight against cancer. With the unique dose deposition that proton therapy offers, it is possible to target the tumor more effectively while limiting the side effects. Protons deposit the majority of their energy within a controlled zone while limiting the impact on healthy tissues surrounding the tumor.
IBA offers a full range of monitoring equipment and software that enable hospitals to perform the necessary calibration and procedural checks for radiation therapy and radiology equipment. Precision and control are essential. That is why delivering exactly the prescribed dose to a precisely defined area in the patient's body is absolutely crucial. The treatment's success and the patient´s safety depend on it.
IBA has installed more than 450 accelerators worldwide. Most of these are used to produce radioisotopes in oncology (for cancer detection), as well as in neurology and cardiology. In addition to its medical activities, IBA leverages its scientific expertise in radiation to develop sterilization and ionization solutions for various industrial uses.
Our mission is to Protect, Enhance and Save Lives. We develop innovative solutions for the diagnosis and treatment of cancer, pushing back the limits of technology. IBA is the global leader in advanced cancer radiation therapy technologies. Our special expertise lies in the development of leadingedge proton therapy technology.
Yes, it was a very good year. On the economic level, the results were in line with the objectives we set ourselves, with growth exceeding 20% and an operating margin that was higher than 11%. On the commercial level, we signed a record number of contracts, including for the sale of eight proton therapy solutions and fourteen orders for Other Accelerators. Our order book has achieved a record level of EUR 335.5 million for the Proton Therapy and Other Accelerators segment. Our services order book has also hit a new record, with EUR 673 million, representing revenues for the next 10 to 15 years. Proton therapy is a huge defining factor in IBA's growth but we have a nicely balanced portfolio of activities, that are all profitable and synergies also exist between them.
IBA owes its success to the quality of its employees, who work tirelessly every day to introduce innovative solutions to different markets. Proteus®ONE*, our compact proton therapy solution, for example caused a minor revolution, making proton therapy more accessible, while incorporating the latest innovations and technology.
Another example is the Cyclone®KIUBE, which was launched to market in 2016 by our RadioPharma Solutions division. This highly compact and evolutive cyclotron led to an incremental increase in our production capacity. This new accelerator demonstrates IBA's impressive growth capacity, and not just in proton therapy.
This growth is no coincidence. Three factors contributed to the success of proton therapy. Firstly, the medical community's growing recognition of the role of proton therapy in cancer therapy. Secondly, better access to technology because of Proteus®ONE, which means a larger number of clinical institutions and patients around the world can enjoy the benefits of proton therapy. And finally, the new technology that we incorporate in our solutions and that allows us to extend the scope of proton therapy applications, such as, for example, Pencil Beam Scanning and Cone Beam CT.
On the one hand, we are increasing our production capacity by building a new assembly line for the particle accelerators for Proteus®ONE, which will be up and running in 2018. We have also hired just under 400 new employees, for the installation and maintenance of the centers in our order book. We will pursue this recruitment drive with the hiring of another 200 engineers in 2017.
The prospects for 2017 are good, and our growth is expected to continue. Our order book is continuing to fill up. Our workforce has doubled in just a few years. Regionalisation will become more important. If we succeed in achieving our vision of ensuring that 20% of all patients who are treated with radiation therapy have access to proton therapy, IBA may very well become one of the market leaders for radiation
Proton therapy's penetration in the radio therapy market is on the rise because of the medical community's growing interest, thanks to cheaper access and technological progress.
Olivier Legrain, Chief Executive Officer
therapy in the years to come. IBA is undergoing a transformation, albeit without forfeiting its unique culture. IBA is also very fortunate that its teams are exceptionally loyal and committed. All IBA employees have the same open, caring mindset when it comes to their colleagues, to patients, to society and to the environment. We aim to have a societal impact while minimising our carbon footprint. IBA also succeeded in bringing its employees together around a unique project and company, thanks to the noble task it set itself. Every time patients show their gratitude, it gives us a sense of why what we do makes such a difference.
Olivier Legrain
Chief Executive Officer A tribute to Professor Philippe De Woot Former President of IBA's Board of Directors, who was a leading light in the field of Corporate Social Responsibility, passed away September 29, 2016.
* Proteus® ONE and Proteus® PLUS are brand names of Proteus 235
It is considered the most advanced form of radiation treatment available in the fight against cancer thanks to the uniform dose deposition and the reduction of the doses to the tissue adjacent to the tumor. Protons deposit the majority of their energy within a controlled zone while limiting the impact on the healthy tissue that surrounds the tumor, meaning larger doses can be deposited in the tumor without increasing the risk of secondary effects or long-term complications. This has the potential to improve the treatment results and the patients' quality of life.
Unfortunately, not enough patients can benefit from proton therapy. Less than 1% of all patients who are undergoing radiation therapy currently have access to it.
* Proton beams release the majority of their destructive energy within a small range inside the tumor, depositing less entrance dose and no exit dose.
The only thing we, as parents, could do for Viggo was to look for the best therapy in the world so that after treatment, he could maintain a high quality of life.
Valérie Verlinden Viggo's mother
Nowadays proton therapy is used to treat many forms of cancer. It is particularly appropriate in situations where treatment options are limited and conventional radiation therapy using a photon beam presents unacceptable risks to patients. These situations include and are not limited to: eye and brain cancers, head and neck cancers, prostate, liver, lung, breast, and pediatric cancers, as well as other tumors in close proximity to one or more critical structures.
Protons can help us be more effective and smarter in the way we try to address and treat the tumor. It can also help us better spare the surrounding tissues.
Medical Director, SCCA Proton Therapy Associate Member, Clinical Research Division Fred Hutchinson Cancer Research Center. Associate Professor, Department of Radiation Oncology, University of Washington School of Medicine, USA
Head and neck Lung Esophagus
Conventional photon beam radiation therapy
Conventional photon beam radiation therapy
Conventional photon beam radiation therapy
Images with courtesy of Dr Alexander Lin, University of Pennsylvania School of Medicine
Images with courtesy of Stephen Bowen, PhD, University of Washington
Proton therapy Proton therapy Proton therapy
Images of the esophagus are from Dr John Plastaras, University of Pennsylvania School of Medicine
Improving the quality of life during and after cancer treatment
While proton therapy today accounts for less than 1% of radiation therapy treatments, studies estimate that at least 20%* of radiation therapy patients would benefit from proton therapy. A large number of clinical trials are under way to demonstrate the benefits of proton therapy. IBA develops new, more affordable solutions and technologies that will further increase the adoption of proton therapy. These developments will shape the future of proton applications, and undoubtedly open a new era for proton therapy treatment.
* Nederlands Gezondheidsraad. Health Council of the Netherlands. Proton radiotherapy. Horizon scanning report. Publication n° 2009/17E. ISBN 978-90-5549-786-7. www.gezondhheidsraad.nl
Following our clinical practice experience, we have been able to implement PBS technology and Cone Beam CT which have allowed us to open new protocols and increase to 40% the number of patients eligible for proton treatment
at our center.
Chair of Penn Medicine Department of Radiation Oncology Executive Director, OncoLink, Philadelphia, PA, USA
Source: data from a cutting edge academic center in the United States
on the clinical effectiveness of proton therapy, please contact us to receive:
Or download them at: www.iba-protontherapy.com/
Awareness of proton therapy within the medical community is growing, just as the number of patients treated with proton therapy grows. The interest is reflected in the increasing amount of clinical data that has become available. Last year more than 700 scientific papers were published.
To keep up with the new findings, IBA compiles and updates the available data into a series of white papers, dedicated to each specific indication. This series of white papers contains information about current practices and the opportunities and challenges for proton therapy in oncology. Besides making available general information about proton therapy, these white papers present an overview of the available data and results for specific indications, targeting stakeholders in cancer radiation therapy around the world.
728 scientific papers
published last year
Source: https://www.ncbi.nlm.nih.gov/pubmed use keywords: "Proton beam therapy" and "Proton therapy"
IBA gathers its customers every year to build proton therapy of tomorrow
IBA users meeting in Dallas, TX, USA, March 2017
is a unique opportunity to connect with other worldwide experts in proton therapy. It allows exchanging ideas and sharing recent developments with the worldwide technology leader in the field of proton therapy. The Skandionkliniken is happy to be the next center to host the IBA users meeting in 2018.
The IBA users meeting
Håkan Nyström, PhD PhD. Chief Physicist at Skandionkliniken, Uppsala, Sweden
IBA has been researching and developing ways to minimize the cost of proton therapy and make it more accessible to all cancer patients.
In line with this commitment, the Proteus®ONE is a compact single-room solution that is more affordable while also being easier to install, operate and finance. Proteus®ONE delivers the latest improvements in proton therapy: Image-Guided IMPT.
It combines the precise dose delivery of Pencil Beam Scanning (PBS) with the dimensionally accurate imaging of 3D Cone Beam Computed Tomography (CBCT), enabling physicians to truly track where protons will be targeting tumor cells.
Proteus®ONE was inspired by everyday clinical practice. Its patient-centered design was developed in collaboration with Philips Healthcare to foster a soothing patient environment while helping the medical staff work more efficiently.
With Proteus®ONE, proton therapy becomes accessible for more patients worldwide. Interest in this compact solution has grown rapidly.
At the Willis-Knighton Cancer Center in Shreveport, LA, we wanted to offer the latest form of proton therapy, Pencil Beam Scanning, while taking advantage of advances in image guidance and remaining within the budget of our hospital system. We needed assurances that our partner had experience in designing, installing, and maintaining a proton therapy facility but also had the financial strength to invest in research and development for the future. IBA has continually demonstrated innovation in the field of proton therapy and they were chosen for their unique ability to meet our department needs.
Medical Director Willis-Knighton Cancer Center, Shreveport, LA, USA
Increasing access to proton therapy worldwide to save more lives
IBA continues to provide the most advanced technologies to its partners and maintains its unrivaled position as an innovator in proton therapy.
Measurement tools are important to maximize the efficiency of radiation therapy, and fine tuning these tools significantly increases the precision of proton therapy. IBA incorporates the latest imaging technologies so clinicians can deliver Image-Guided Proton Therapy (IGPT) to cancer patients. IGPT relies on high-resolution and high-sensitivity X-ray digital imaging systems that provide low-dose stereoscopic and 3D imaging in various geometrical arrangements. Those advanced imaging technologies ensure quick and accurate patient position verification by comparison with diagnostic
CT images during the treatment planning process. IBA also benefits from a partnership with Philips Healthcare to provide superior diagnostic imaging expertise.
Pencil Beam Scanning (PBS) easily and precisely sculpts the dose in complex volumes. PBS is a proton beam delivery mode which paints the target volume, one layer at a time, voxel by voxel, to precisely match the shape of the tumor. It allows clinics to sculpt the dose with very high levels of conformity and dose uniformity, even in complex shaped tumors. PBS provides the opportunity to increase the number of clinical indications for proton therapy and contributes to minimizing the overall radiation dose.
PBS sculpts the dose by painting the target volume, one layer at a time, voxel by voxel
Proton therapy is IBA's principal source of growth for the future, particularly since the company also enjoys the position of uncontested global market leader. IBA provides the systems for more than half of all proton therapy treatment projects in the world.
The company benefits from the increasing global adoption and acceptance of proton therapy as it is considered as the most advanced and precise treatment option for radiation therapy patients. IBA has continued to maintain its strong leadership in the field, securing approximately 50% of all proton therapy solutions ordered. To date, more than 50,000 patients have been treated by IBA customers, more than on all competitor systems combined.
Thanks to new collaborations with Philips and Toshiba, IBA further strengthens its world leadership in proton therapy remaining at the forefront when it comes to delivering the latest in innovative cancer therapy in key regions.
Patients treated with IBA systems
IBA dosimetry offers a full range of integrated high-quality solutions in radiation therapy and medical imaging quality assurance, and calibration procedures.
Both in medical imaging and in radiation therapy applications, radiation has to be applied wisely and carefully. In medical imaging, the goal is to minimize radiation exposure to the patient while maintaining good image quality. In radiation therapy, the goal is to target the tumor mass with a high dose of cancer-killing radiation with pinpoint accuracy, while sparing healthy tissue.
With over 10,000 users worldwide, IBA Dosimetry is the market leader in providing healthcare professionals with high-end quality assurance solutions to measure and analyze the imaging and treatment doses received by patients.
IBA believes that in view of the increasing requirement in the healthcare market for higher patient safety, the demand for dosimetry and quality assurance solutions in conventional radiation therapy, proton therapy, and medical imaging will grow as fast as the demand for radiation therapy and medical imaging equipment.
myQA® sets a new workflow efficiency standard by integrating all quality assurance applications and data into one common software platform. It offers a complete overview of the radiation therapy department and connects users worldwide, so that new treatment methods can be applied faster and with more confidence - resulting in safer patient treatments.
+10k More than 10000 users worldwide
Unique CAREprogram for customers: expert services, enhanced trainings, engaging events.
Dolphin® Online Ready Patient QA and Monitoring solution
IBA provides the best patient safety in radiation therapy and medical imaging
Being so straightforward to use it allows us to plan to the capabilities of the treatment machines, rather than limiting what we do because legacy verification processes cannot keep up. This ensures our clinicians can offer the best possible care to their patients.
Head of Radiotherapy Physics at the new North West Cancer Centre, Londonderry, United Kingdom
IBA has developed in-depth experience in setting up medical radiopharmaceutical production centers. Based on this longstanding expertise, the IBA RadioPharma Solutions team helps nuclear medicine departments in hospitals and radiopharmaceutical distribution centers to design, build and operate a radiopharmacy.
Acquiring a cyclotron is the first step in the complex project of acquiring a fully-functional radiopharmacy, one that requires all components and auxiliary equipment to be integrated into a consistent and efficient radiopharmacy center.
IBA RadioPharma Solutions has already installed 260 cyclotrons and over 500 Synthera® chemistry modules throughout the world. The sales potential for IBA in mid- and high-energy cyclotrons is high considering the increased demand for radiopharmaceuticals for the diagnosis of severe diseases throughout the world, particularly in emerging countries. In addition, in 2016, IBA launched the Cyclone®KIUBE and the Synthera®+ which are the perfect answers to the market needs for PET tracers production.
260 cyclotrons sold 500 Synthera®
worldwide
sold worldwide
80 radiopharmaceutical production facilities that have been fully integrated by IBA
The new Cyclone®KIUBE cyclotron
With the Cyclone®KIUBE and Synthera®+, IBA not only reduces the global footprint of a radiopharmacy but creates the opportunity to do a wider range of products, simultaneously. This allows us to broaden our perspective to deliver the compounds that the community of practitioners and patients need.
Trevor Subero
Senior Director, Business Development Zevacor Pharma, Inc. USA
IBA technologies enable all contamination by chemical products and radioactive material to be avoided
As the world leader in electron, X-ray and proton high energy accelerators for industrial applications, IBA Industrial remains at the forefront of innovation. The two key target market share the sterilization of single-use medical products and the improvement of the physical properties of polymers (crosslinking).
In the sterilization market, IBA offers unique high power solutions based on the Rhodotron®. These solutions allow customers to sterilize medical devices either by X-ray or electron beam treatment. That enables the industry to break its dependency on chemical or radioactive-based sterilization processes.
The second key target market - polymer crosslinking - is mainly bolstered by the automotive industry, which benefits from light and compact high performance crosslinked electric cables, which improve fuel efficiency.
In addition, IBA Industrial is continuously evaluating and developing new growth markets, such as X-ray cargo screening. IBA Industrial's X-ray generator, based on the Rhodotron®, is the heart of a new kind of cargo screening system installed in the Port of Boston. It is a state-of-the-art, non-intrusive, cargo inspection system designed to efficiently detect, locate and identify contraband and security threats.
Over 200 IBA Industrial accelerators are used in the world today.
+200 industial accelerators
We were supported perfectly throughout the whole project lifetime. It's more partnership and not only cooperation.
Bernhard Gallnboeck-Wagne Technical Manager, Mediscan GmbH
In 2016, IBA unveiled its new 10 MeV Rhodotron®, the TT50: a new compact system
We wanted to build a different company. While we need to make a profit, as it is a condition for our survival, we don't consider it an end in itself.
Founder and Chief Research Officer
From left to right:Pierre Mottet, Olivier Legrain and Yves Jongen
Since its inception, IBA has focused on bringing real improvement to people's lives, not just on providing services or products. Sustainability is part of our business culture. We share ideas and know-how with our customers and our partners to contribute to new solutions for the diagnosis and treatment of cancer and new processes for the long-term vitality of our industry. We care about the well-being of patients, our employees, society, the Earth and our shareholders because this is the only way we can complete our mission to Protect, Enhance and Save Lives.
Besides its economic purpose, IBA is determined to reduce any negative impact on society and the environment. In this effort toward a sustainable world, we are in the process of defining our focus and main targets, using participative methods. Sharing our ambition and our progress publicly and transparently is a real driver and motivator to go beyond expectations and regulations.
There are three levers of action to realize our ambitions toward sustainability. The first is the engagement of our people through raising awareness about global issues, encouraging voluntary action and supporting employee's initiatives. A second lever is the efficiency and quality of our day-to-day operations, industrial processes and management. The third is about our core business, the heart of our mission: the innovations we develop for our products and services.
We believe that we will create positive impact and values if our stakeholders can be part of the journey, if they can bring their voices into the debate.
IBA is committed to hearing the voices of its stakeholders when defining or reviewing its strategies. Each stakeholder of our five-pointed star deserves our attention. We then strive to keep a fair balance between them, as we don't want to create value for one stakeholder at the cost of another. To the contrary, we focus on synergies between them to improve our positive impact in a global approach.
Dare to believe in your dreams, to go beyond the limits of your managerial competencies, to break out of your comfort zone, in your professional life. Don't be a conformist. Be creative and innovative, be an entrepreneur.
Former IBA chairman of the Board of Directors and recognized as a pioneer in the development of the Corporate Social Responsibility
To satisfy its customers and help them to take care of their patients, IBA works on:
As part of its DNA, IBA develops leading-edge technologies and advanced features in line with its mission to Protect, Enhance and Save Lives.
IBA works continuously to make its solutions affordable to more customers. Today, thanks to the compact proton therapy solution Proteus®ONE, proton therapy is more accessible to cancer hospitals and patients.
Launched in 2015, IBA continues the white paper series on proton therapy in oncology.
This series compiles information on current practice, opportunities and challenges of proton therapy. IBA published three papers in 2016, increasing the awareness of the clinical advantage of proton therapy so that more institutions adopt this technology.
IBA develops top quality and associated processes (medical and industrial) for the safety of users and the healing of patients.
IBA fosters a strong quality culture and moves its quality system from a compliance tool to a business and improvement tool. By challenging its internal and external suppliers, the company delivers the best products to its customers.
We have been able to treat more than 6,500 patients in just 10 years and we have been at capacity since we were open. Over this time period, there have been only six days that we have lost to treatment. So the operation and equipment have been fantastic from the highest levels to the IBA people on the ground. There is an obvious, deep commitment to patient care.
Nancy Mendenhall, MD Medical Director at UF Health Proton Therapy Institute, Jacksonville, Florida, USA
At IBA, we believe that our people are our most important asset and that they are the driving force behind our organization.
IBA is an ambitious company that creates, innovates and stimulates, a company that passionately believes in its employees. Our priority is to ensure their safety and their well-being at work. Creating an environment in which they can boldly innovate and do an interesting job, with an impact. An environment in which they can develop on a professional and private level. These are just a few of the commitments that IBA has made to its employees in the framework of The Promise.
Without this commitment, the company could never achieve its mission and fulfil its social and economical role. On the other hand, IBA also enjoys the full support and loyalty of its personnel, with an employee turnover of 3.48% around the world and 0.67% in Belgium.
IBA employees also share a common open and friendly culture. A culture where we all care for each other and our stakeholders. Where we are mutually accountable for our results. Where we constantly act in the spirit of fairness and sustainability.
For its contribution to building and sustaining a change-minded workforce and a positive environment for its employees, IBA was honored with a "Corporate HR" and the "Best Workplaces" awards.
Since its founding, IBA has made sustainability a priority to ensure its economic health and a means of achieving its purpose and mission. Being sustainable means IBA has better access to capital from responsible investors caring about the purpose of our business and the ethical way we work.
Besides investing in an ethical company with a sustainable purpose, we believe that our shareholders also deserve to enjoy a "traditional" return on investment. IBA expects to maintain the dividend pay-out ratio at 30%.
As a recognition of its corporate social responsibility, as per December 31, 2016, IBA was selected for the Triodos sustainable investment universe and became therefore eligible for investment by the Triodos SRI funds and Triodos Bank Private Banking. The share was included in the Triodos Sustainable Pioneer Fund. This fund invests worldwide in small and mediumsized listed companies engaged in innovative and groundbreaking activities in the field of sustainability. Further details about this fund via www.triodos.com
IBA's sustainability program also reaches out to the community and future generations with actions that can change lives.
Reinforcing its mission to Protect, Enhance and Save Lives, IBA supports many associations and employee initiatives in the fight against cancer and their efforts to provide patient support. IBA supports the Belgian foundation against cancer through direct sponsoring, as well as through donations from employee initiatives such as the IBA Sailing Team and the "Golf Against Cancer" event. In the US, IBA provides a grant to the Compass to Care Childhood Cancer Foundation which helps children access life-saving cancer treatment like proton therapy by providing travel from their homes to the hospital.
With the future in mind, IBA has joined forces with other large European companies to launch the "All4Youth" Program. It helps to integrate young graduates all over Europe in the job market by offering internships. Since the launch of this program in 2015, 150 graduates have had that opportunity at IBA and 28 were offered a contract at IBA.
I've wondered how we could help all these families in need without IBA. I've realized how much of a blessing IBA has been to our organization and to those we help.
Michelle Ernsdorff-May Compass to Care founder
Volunteers working for the Belgian association "La Vie-là". www.lavielaottignies.org
Finally, IBA measures the environmental impact of IBA's activities (externalities) and assigns financial means for internal company projects aimed at shrinking that impact.
IBA is committed to reducing its greenhouse emissions. In order to determine its goals and the time frame, IBA is currently calculating its precise carbon footprint. Drawing inspiration from the "Science Based Target" method, the company will be able to define its commitments, over the next few months, in line with the climate change targets of COP21.
Among numerous sustainability projects, IBA announced the construction of a new logistic and production center in order to meet the growing demand for the compact proton therapy solution, Proteus®ONE. This new kind of factory will help reduce greenhouse emissions and optimize the use of energy and raw materials. (This construction includes the innovative elements of green roofs, biodiversity, recycled materials, solar panels energy for electricity, lights and heating, among others…)
Lower Activation Concrete is another project that reflects how innovative IBA and its partners can be. It uses concrete that retains less radioactivity in shielding the vaults when testing accelerators. This project illustrates the focus of IBA to reduce and sort waste from our end-of-life products, as well as develop new products and services while using renewables and recycled resources.
The new logistic and production center will be operational by 2018
IBA employees working in the IBA vegetable garden
From left to right: Frédéric Nolf, Jean-Marc Bothy, Rob Plompen, Soumya Chandramouli, Yves Jongen, Olivier Legrain
From left to right: Jeroen Cammeraat, Sybille van den Hove, Marcel Miller, Olivier Legrain, Pierre Mottet, Dr Mary Gospodarowicz, Eric de Lamotte, Katleen Vandeweyer, Yves Jongen
Approved by the Board of Directors at its meeting of March 22, 2017.
The main events of the 2016 financial year, further details of which are contained in the Management report, were as follows:
The key figures in terms of financial results are as follows:
which offers turnkey solutions for a more precise treatment of cancer, with fewer side effects, through the use of proton beams.
which offer a line of cyclotrons used for the production of PET or SPECT radioisotopes and a line of industrial accelerators for sterilization and ionization (E-beam and Rhodotron® and Dynamitron® types of X-ray).
Dosimetry offers measurement and quality assurance instruments for radiotherapy and medical imaging, enabling healthcare professionals to verify that equipment administers the planned dose to the targeted area.
| FY 2015 (EUR 000) |
FY 2016 (EUR 000) |
Variance (EUR 000) |
Variance % |
|
|---|---|---|---|---|
| Net Sales | 216 261 | 280 666 | 64 405 | +29.8% |
| - Proton therapy | 161 938 | 226 529 | 64 591 | +39.3% |
| - Other accelerators | 54 323 | 54 137 | -186 | -0.3% |
| REBITDA | 25 270 | 38 613 | 13 343 | +52.8% |
| % of Sales | 11.7% | 13.8% | ||
| REBIT | 21 956 | 34 115 | 12 159 | +55.4% |
| % of Sales | 10.2% | 12.2% |
Net sales for Proton Therapy and Other Accelerators grew by 29.8% in 2016, driven in part by fast execution of orders in the backlog, in addition to continued strong growth of service revenues, now accounting for 29% of segment revenues.
IBA's Other Accelerators division delivered stable revenues, mostly due to slow conversion of backlog on industrial accelerators, despite 14 orders in 2016. Revenues declined very slightly by -0.3% to EUR 54.1 million, from EUR 54.3 million in 2015.
Proton Therapy service revenues alone increased by 21.7% and, including Other Accelerators, by 16.9%, further indicating the sustainability and predictability of this important revenue stream. The Company now has 42 PT service contracts signed, totaling a backlog of EUR 673 million in future booked recurring revenues over the next 10-15 years.
In addition, IBA has a record year-end backlog in Proton Therapy and Other Accelerators of EUR 335.5 million, up from EUR 332 million at the end of 2015. This figure excludes the H1 2016 order in China (Qingdao) which is awaiting down payment.
IBA has continued to deliver a strong commercial performance with eight systems sold comprising 17 proton therapy rooms in 2016 across all major markets including India (1 system, 3 rooms), China (2 systems, 9 rooms), US (1 room), UK (2 systems, 2 rooms), Belgium (1 room) and Abu Dhabi (1 room).
Additionally, IBA is generating growing revenues from the upgrade of its existing installed base of machines. EUR 19.5 million worth of upgrades were sold in all business lines in 2016 with major upgrades on several PT sites in the US and Europe to bring them up to standard on the latest IBA technologies available to customers today.
Proton Therapy Strategy for Growth
Following the proton therapy orders booked over the last few years globally, IBA launched an international plan to recruit 400 new employees over 2016. Approximately half of these are now based in Louvainla-Neuve, Belgium, with the remainder in the USA, Europe and Asia. The majority of hires are field service engineers, responsible for the installation and maintenance of proton therapy solutions. Building on this growth and to support further revenue growth, IBA will recruit a further 200 engineers through the course of 2017.
As IBA's operations grow worldwide, the Company has also reorganized its activities, building up a more regionalized structure for certain functions. Notably installation, services and S&M organizations which are being decentralized to better serve customers.
IBA is investing more than EUR 16 million in CAPEX as part of a "scale up" program to increase production capacity. The construction of a new testing vault is well on its way and the permit for the new Proteus®ONE* assembly line, the marketing infrastructure and the customer center was obtained at the end of the year 2016. The majority of these expenses will be in 2017. The assembly line should be operational in Q1 2018 and the rest of the infrastructure will follow in the course of the same year.
Proton Therapy Key Commercial and Strategic Alliances
Building on collaborative achievements since 2014 to provide advanced diagnostic and therapeutic oncology solutions, initiatives continue with Philips to jointly develop next-generation proton therapy planning methods to further increase efficiencies in the patient treatment workflow.
More than 30 IBA proton therapy centers are expected to benefit from an enhanced Cone Beam CT imaging technology as a result of this collaboration with Philips. This advanced imaging technology provides the large field-of-view needed for enhanced image guidance during proton therapy procedures.
IBA announced in August that it has invested USD 2 million in HIL Applied Medical Ltd to develop a laserbased proton therapy solution. HIL is applying a novel, patented approach to particle acceleration and delivery, combining nano-technology with ultra-highintensity lasers and ultra-fast magnets. This potential technological breakthrough could enable a meaningful reduction in the size and cost of proton therapy solutions without compromising clinical utility in the medium to long term.
In September, IBA entered into a long-term strategic alliance with RaySearch to combine respective technologies and advance adaptive proton therapy. As part of the collaboration, the RayCare® oncology information system, which is currently in development at RaySearch, will be customized for optimal use together with the IBA delivery solutions. The result will be a complete turnkey solution for all software and hardware needed to deliver outstanding adaptive proton therapy treatment.
With the regulatory approval of Proteus®ONE in Japan in December, IBA's compact proton therapy solution is now certified in three major regions: the US, Europe and Japan. Certification in Japan also unlocks the potential of the Japanese distribution agreement signed with Toshiba in 2015 and is expected to add to positive momentum in this market in 2017 and beyond.
In July, Penn Medicine and IBA announced the world's first patient treatment using IBA's Prompt Gamma camera in Pencil Beam Scanning Mode, providing in vivo feedback on the proton beam penetration depth within the patient on an individual spot basis, thus allowing unprecedented quality control of the target volume coverage.
Constantly looking to advance technologies in order to provide better solutions for patients, IBA is working on a number of developments. Motion management will accommodate movement of the target tumor during treatment, improving accuracy and reducing treatment time. To further refine the penetration depth, advanced imagery will reduce the effects of range uncertainties. Adaptive therapies will improve accuracy to account for anatomical changes during the course of treatment.
IBA launched a new evolutionary cyclotron at the 2016 Society of Nuclear Medicine and Molecular Imaging (SNMMI) annual meeting in San Diego, California, United States, in June. The Cyclone®KIUBE is a true evolutionary cyclotron meaning that production capacity can be increased step-by-step. Positron Emission Tomography (PET) imaging procedures play a critical role in medical care today and growing demand for radioisotopes means a greater need for efficiency. This new 18MeV cyclotron is more compact (about 30% weight reduction), more powerful, and comes with a self-shielding option.
IBA also launched the Synthera + chemistry box system, in addition to completing the acceptance testing of two Cyclone® 70 for cardiac imaging.
Over 250 IBA Industrial Accelerators are used in the world today, including some that have been functioning for more than 50 years. IBA's Industrial Accelerators division focuses on two markets: the sterilization of single-use medical products, and the improvement of the physical properties of polymers (crosslinking). IBA Industrial is evaluating new long term markets such as container screening and energy saving solutions. These new markets could contribute to growth of the segment.
At the 18th International Meeting on Radiation Processing in Vancouver, Canada, in November, IBA unveiled its new 10 MeV Rhodotron®: the TT50; a new compact and cost efficient system with a more efficient use of power.
The first fully integrated cargo screening solution integrating a TT100 Rhodotron is in the final commissioning phase before a handover to US Customs for a full year of testing and validation. This solution will dramatically increase the efficiency of detection of radioactive or other threats for cargos entering the Port of Boston, as well as commercial smuggling.
| FY 2015 | FY 2016 | Variance | Variance | |
|---|---|---|---|---|
| (EUR 000) | (EUR 000) | (EUR 000) | % | |
| Net Sales | 54 096 | 48 108 | -5 988 | -11.1% |
| - Dosimetry | 54 096 | 48 108 | -5 988 | -11.1% |
| REBITDA | 8 440 | 4 077 | -4 363 | -51.7% |
| % of Sales | 15.6% | 8.5% | ||
| REBIT | 7 597 | 3 022 | -4 575 | -60.2% |
| % of Sales | 14.0% | 6.3% | ||
.
Dosimetry sales were down 11.1%, despite strong Dosimetry for PT activity, partly due to an unusually strong 2015 and also the low conversion rate on longterm orders, even though sales caught up well over Q4 with conversion rates improving.
The total order intake in 2016 of EUR 48.1 million was down 11.1% on FY 2015 due to strong prior year including long term South America orders as well as exchange rate effects.
Despite this, the backlog of EUR 17.9 million remains high (EUR 18.4 million at the end of 2015) and, importantly, over the last three years, the average growth of the Dosimetry business (excluding temporary periodic effects) continues at around 3% in line with Linac market.
In August, Dosimetry announced the first worldwide clinical implementation of its newly released Dolphin Online Ready Patient QA and Monitoring system. The team at the radiation therapy department of the Klinikum Bayreuth GmbH in Germany, has successfully validated and clinically implemented three Dolphin systems at two of its sites.
In addition, IBA has also announced the third release of its global quality assurance platform: myQA®. myQA is a unique platform that connects QA applications and data through a central database and software application.
In March, IBA completed the sale of IBA Molecular ("IBAM"), in which IBA had a 40% stake, to funds advised by CapVest Partners LP ("CapVest"). With this transaction, IBA has fully exited its joint venture with SK Capital Partners and retains no interests in IBA Molecular. Most of the capital gain booked in 2015 was distributed to IBA shareholders as part of a dividend payout of EUR 40.1 million in June 2016.
Pursuant to Article 12, §2, 3° of the Royal Decree of November 14, 2007 regarding obligations of issuers of financial instruments admitted to trading on a regulated market, Olivier Legrain, Chief Executive Officer (CEO), and Soumya Chandramouli, Chief Financial Officer (CFO) of IBA SA, declare that, to their knowledge:
the enclosed financial statements, prepared in accordance with applicable accounting standards and thoroughly reviewed by the auditors, accurately reflect the assets, financial position, and results of IBA SA and the undertakings included in the consolidation; and
this management report gives exact information and a true and fair view of the business evolution, the earnings, and the position of IBA and the undertakings included in the consolidation, as well as a description of the principal risks and uncertainties they face. This management report does not omit any information that would be significantly misleading as to any other information given in it.
IBA reported a 21.6% increase in revenues to EUR 328.8 million during 2016 (2015: EUR 270.4 million).
Recurring operating profits before interest and taxes (REBIT) continued to improve compared with 2015, due to strong proton therapy order intake and equipment revenues.
The Company's REBIT increased 25.7% in 2016 from EUR 29.6 million in 2015 to EUR 37.1 million in 2016. At constant FX rate, the growth would have been 25.4%.
Other operating result mainly includes a one-time bonus granted to employees excluding management, a provision for a long-term incentive plan, costs of share-based payments and reorganization expenses (see note 25).
IBA's Board of Directors will recommend to the General Assembly the distribution of a dividend of EUR 0.29 per share representing more than 35% of its net profit.
Operating cash flow during 2016 amounted to EUR - 17.0 million.
Cash flow from investing was positive at EUR 48.3 million, thanks to the payment received from the disposal of IBA Molecular (Rose Holding SARL) for EUR 62.3 million and the payment of the deferred earn-out related to the disposal of Pharmalogic PET Services of Montreal Cie. assets for EUR 1.2 million compensated by the acquisition of a minority stake in HIL Applied Medical Ltd. for EUR 1.8 million and investments in software, buildings and equipment for EUR 13.0 million.
The net cash position at the year-end was EUR 44.5 million, slightly below year-end 2015 of EUR 50 million.
Non-current assets increased by EUR 12.4 million during the 2016 financial year, essentially due to the combined effects of:
Goodwill at the end of 2016 (EUR 3.8 million) remained unchanged and was related to the Dosimetry business.
Intangible fixed assets (EUR 10.0 million) and tangible fixed assets (EUR 16.3 million) increased by a total of EUR 8.3 million. The change during the year is mainly attributable to high investment in software, buildings and equipment for EUR 13.0 million and depreciation and amortization for 4.7 million.
Companies accounted for using the equity method and other investments increased by EUR 1.3 million, mainly due the acquisition of a minority stake in HIL Applied Medical Ltd. for EUR 1.8 million (USD 2 million) partially compensated by the impact of the margin elimination surplus of a proton therapy project sold to an equity-accounted company for EUR 0.5 million.
Deferred tax assets amounting to EUR 20.4 million decreased by EUR 0.4 million and represent recoverable losses on future earnings, essentially on IBA SA and LLC Ion Beam Applications (Russia) and temporary differences on IBA's American entities and Ion Beam Beijing Applications Co Ltd. amounting to EUR 2.4 million.
Other long-term assets increased by EUR 1.8 million to EUR 18.5 million. This change is essentially attributable to the recognition of additional research tax credit of EUR 2.32 million, the transfer to short term of research tax credit of EUR 0.88 million, the increase of long term trade receivables on a proton therapy customer for EUR 0.42 million and the decrease of long term deposits for EUR 0.23 million.
Current assets amount to EUR 297.8 million at the end of 2016. There was a large increase of EUR 26.1 million compared with 2015.
Inventories and contracts in progress increased by EUR 32.7 million, EUR 25.8 million was attributable to contracts in progress and EUR 9.7 million was attributable to raw materials compensated by the decrease of EUR 2.1 million of the finished products and work in progress and the increase of EUR 0.7 million of write-off on inventories.
Trade receivables increased by EUR 5.8 million.
The decrease of EUR 59.4 million in other receivables mainly related to the decrease of the other receivables related to the disposal of IBA Molecular for EUR 64 million, the decrease of the deferred earn-out related to the disposal of Pharmalogic PET Services of Montreal Cie. assets for EUR 1.16 million, the increase of advance payments made to suppliers for EUR 3.4 million, the increase of value added tax and other tax receivables for EUR 0.8 million and the increase of prepaid expenses for EUR 1.4 million.
Non-current liabilities increased by EUR 14.9 million compared with the end of 2015 to EUR 43.8 million at the end of 2016. This change is mainly attributable to the following factors:
Current liabilities decreased from EUR 205.9 million in 2015 to EUR 186.4 million in 2016. The following elements are to be noted:
Short-term provisions, which amounted to EUR 6.3 million at the end of 2016, decreased by EUR 0.7 million, mainly due to the reduction on provisions related to the settlement for outstanding claims and counterclaims regarding IBA Molecular for EUR 0.7 million.
The Group's cash and cash equivalents decreased by EUR 7.15 million in 2016, mainly due to a negative operating cash-flow of EUR 17.0 million, to acquisitions of tangible and intangible assets of EUR 13.0 million, by the investment in HIL Applied Medical Ltd. of EUR 1.8 million and by a financing cash-out of EUR 38.8 million mainly related to the dividend payment of EUR 40.3 million reduced by cash-in related to the disposal of IBA Molecular for EUR 62.28 million and cash-in for a deferred earn-out related to the disposal of Pharmalogic PET Services of Montreal Cie. assets for EUR 1.16 million.
Net financial position decreased from EUR 50 million net cash end of 2015 to EUR 44.5 million end of 2016.
Research and development expenses related to the Group's businesses amounted to EUR 34.66 million (10.5% of sales) in 2016 less EUR -2.31 million of research tax credit for which provisions were recognized.
At IBA, research expenses are recognized directly in the income statement and development expenses are recognized directly in the income statement because the nature of capitalizable development costs cannot be demonstrated in accordance with the Group's accounting rules. These significant investments enable the Company to remain among the world leaders in all the markets in which it operates.
There was no issues of stock options or convertible bonds in 2016. The capital was increased several times further to the exercise of stock options granted to employees. Those are further detailed in Section General Information – Capital (See page 151).
IBA SA did not repurchase or sell any of its stock in 2016. At December 31, 2016, IBA SA held 63 519 of its own shares.
In 2016, the reported profit for the period reached EUR 26.7 million compared to EUR 23.4 million in 2015. This presents an increase of EUR 3.3 million.
Sales and services (non-recurring excluded) increased by 30% in 2016 from EUR 247.7 million to EUR 322.7 million due to strong order intake in proton therapy but also growth in maintenance operations and good ongoing equipment project execution.
Operating profit (excluding non-recurring impact) amounts to EUR 29.5 million in 2016 against EUR 24.9 million in 2015, resulting in a net increase of EUR 4.5 million. Operating expenses (non-recurring excluded) went up EUR 70.4 million in 2016. This increase is attributable to the company's investment in growth mainly in areas such as purchase of services and goods and hiring additional staff. The R&D expenditure of EUR 32.3 million in 2016, compared to EUR 27.3 million in 2015, is capitalized. The development expenses of EUR 29.0 million are
depreciated over three years where research expenses EUR 3.3 million are depreciated immediately in the same year.
IBA presented a financial charge of EUR 1.7 million in 2016 compared to a financial charge of EUR 0.8 million in 2015. The interest charges on loans in 2016 represent EUR 1.6 million. The remainder includes mostly foreign exchange impacts and bank charges.
The operational perspectives of IBA SA remain highly positive.
At the end of 2016, the Company had eight branches in Prague, Czech Republic; Orsay, France; Krakow, Poland; Trento, Italy; Seoul, South Korea; Uppsala, Sweden; Groningen, Netherlands; and Newport, United Kingdom. The branches were established as part of the company's Accelerator business.
Being called on to decide on the approval of the report of the Compensation Committee regarding the appraisal of the Management Team triggered the application of the procedure governing directors' conflict of interests as defined in article 523 of the Belgian Companies Act. This conflict of interests concerned the managing directors in their capacity of Management team Members.
"The directors affected by the conflict of interests decide not to participate in the deliberations relating to the proposals on the agenda, nor to take part in the vote. After deliberation, the Board unanimously approves the recommendations made by the compensation Committee in his report to the Board regarding the Managing Directors remuneration."
In accordance with article 96, paragraph 9, of the Belgian Companies Act, IBA's Board of Directors reports that
No significant acquisition or divestment occurred in 2016.
Besides the risks to which all industrial companies are exposed, a list of significant risk factors specific to IBA's activities is described below. This list does not claim to be exhaustive.
Some IBA products and devices cannot be marketed without regulatory approval or registration as medical devices. Such authorization is necessary in each country where IBA wishes to market a product or device. At the end of 2016 IBA was authorized to market its particle therapy devices in the United States (FDA), the European Union (LRQA), Australia (TGA), Russia (Gost-R) and South Korea (MFDS), Taiwan (TFDA), Singapore (SFDA) and Japan (Shonin). Authorizations may always be revoked. Moreover, as IBA's equipment evolves technologically, further authorizations may be required.
The Company continues to invest heavily in research and development and cannot overlook the possibility that one of its prototypes may not be commercially viable or may become obsolete during its development because of competing technological development.
The subsidization by healthcare reimbursement institutions of costs for diagnostics by PET (Positron Emission Tomography) scans or SPECT (Single Photon Emission Computed Tomography) scans – or for the treatment of certain diseases for which equipment made by IBA is directly or indirectly involved – is subject to review. The healthcare reimbursement policies of these organizations will in turn influence the volume of orders that IBA obtains. These subsidies from reimbursement institutions differ greatly from one country to another.
The use of products made by IBA may expose the Company to certain liability lawsuits. IBA maintains insurance to protect itself in the event of damages arising from a product liability lawsuit or from the use of its products. In a country such as the United States, where the slightest incident may result in major lawsuits, there is always a risk that a patient who is dissatisfied with services received by products delivered by IBA may initiate legal action against it. The Company cannot guarantee that its insurance coverage will always be sufficient to protect it from such risks or that it will always be possible to obtain coverage for such risks.
The Company is exposed to foreign exchange risks when it signs certain contracts in foreign currencies or when it invests abroad. To the fullest extent possible, the Company employs the financial instruments necessary to limit its exposure to these risks. The Company's financial risk management objectives and policy, as well as its policies on price, liquidity and cash flow risk are described in greater detail in the notes to the consolidated financial statements in this report.
IBA invests in companies whose business sector is complementary to its own. In most cases, these are recently established companies in innovative sectors. IBA cannot guarantee that all of these investments will be profitable in the future or that some projects will not be purely and simply terminated. In certain cases, IBA also invests its surplus cash in very liquid and highly rated financial instruments but cannot however, predict sudden changes in these ratings or market modifications leading to the loss of this liquidity.
The risk of decommissioning at IBA facilities can be considered low since there is neither production of radioisotopes nor are the accelerators activated during the production phase.
There is a decommissioning risk where IBA operates an accelerator for R&D or business purposes.
Since IBA was established, the number of highly qualified persons employed by the Company has significantly increased. However, it is possible that the defection of certain key employees possessing specific expertise could, for a short time, affect one of the Company's activities.
In general, IBA's customers are diversified and located on several continents. Each year the Company depends on a number of orders, particularly for its proton therapy systems that are executed over several financial years. The receipt of one additional order or one less order, or changes in an order that were not anticipated at the beginning of the year, are characteristics of this field of business which can have a significant impact over several accounting periods. On the other hand, the lead time for fulfilling orders gives the Company a good view of its level of activity several months in advance.
The Company holds intellectual property rights. Some of these rights are generated by employee or
production process knowhow and are not protected by patents. The Company has filed patents but it cannot guarantee that the scope of these patents is broad enough to protect the Company's intellectual property rights and prevent its competitors from gaining access to similar technologies. The Company cannot guarantee that the defection of certain employees will not have a negative impact on its intellectual property rights.
Currently, IBA has no direct competitor covering all the markets in which it is present. However in certain markets, it is competing against some of the world's largest corporations. These corporations have highly developed sales and marketing networks and more importantly, extensive financial resources beyond comparison with those of IBA. Furthermore, there is always the possibility that a new technology – notably a revolutionary therapy in the treatment of cancer that would render a part of IBA's current product line obsolete – could be developed.
The development and marketing of a new therapy does nevertheless require a relatively long period of time.
Some contracts may contain warranties or penalties which generally represent only a few percent of the amount of the contract in the case of conventional sales contracts. However these amounts may be significantly higher in public-private partnerships in as much as the penalties must cover the associated financing. Such clauses are applicable only to a limited number of contracts, essentially those relating to proton therapy projects. The possibility that a customer may one day exercise such a warranty or penalty clause cannot be excluded.
On February 17, 2017, IBA announced that it has been selected as the preferred vendor by four leading universities of Brussels (ULB), Liège (Ulg), Mons (UMons) and Namur (UNamur), alongside the Wallonia Region government, to install a Proteus®ONE solution, IBA's single-room compact proton therapy system, in Charleroi, Belgium. IBA was selected following a comprehensive European public tender process and expects to sign a final contract in the coming weeks, after expiration of the applicable waiting period.
The new center will be dedicated primarily to the research and development of new proton therapy applications and techniques in order to extend the range of proton therapy used in the treatment of cancer. The center, which will also treat patients, will be located in Charleroi and is expected to be operational in 2020. The Wallonia Region will invest a total of EUR 47 million in this research project, which will include the IBA technology, research program, maintenance contract as well as related equipment.
On February 23, 2017, IBA announced that it has signed a contract with Quirónsalud, Spain's leading hospital group and part of Germany's Helios Group, to install a Proteus®ONE compact proton therapy solution in Madrid.
The contract covers delivery of a Proteus®ONE solution, including latest generation Pencil Beam Scanning (PBS), isocenter volumetric imaging (Cone Beam CT) capabilities and a long-term maintenance agreement. The hospital group will also benefit from Penn Medicine and IBA's world leading proton therapy clinical education program. The hospital will be ready to start treating patients by 2019. The typical end-user price for a Proteus®ONE system with a maintenance contract is between EUR 35 and 40 million.
Proton therapy's penetration of the radiation therapy market continues to grow due to increasing clinical relevance, affordability and technological advances. To keep ahead of and to lead this growth, IBA continues to scale up production capacity, including investment in a new Proteus®ONE assembly line and a new customer center, with an expected further combined CAPEX of about EUR 16 million, of which around EUR 10 million will be invested in 2017. The Company is also recruiting an additional 200 engineers and qualified staff, worldwide, through 2017.
IBA has a record backlog of EUR 335.5 million and the sustainable revenue source from service and maintenance contracts now represents EUR 673.3 million of revenue over the next 10-15 years. IBA expects to achieve revenue growth between 15% to 20% in 2017 and double digit thereafter.
The Company expects its operating margin to be 11% to 12% in 2017, increasing to 13%-15% by 2018 and stabilizing at 15% by 2020.
IBA is planning to maintain a dividend payout ratio of 30%.
This guidance is based upon the continued expected growth of the proton therapy market but also the balance between the economies of scale that we can achieve at a higher production rate. In addition, the growing importance of service revenue versus the increased demand driven by the equipment price tag reduction in the proton therapy market and our continued investment in R&D and software capabilities, are anticipated to be contributing factors.
The philosophy, structure, and general principles of IBA corporate governance are presented in the Company's Corporate Charter ("Charter"). The Charter is available on the Company's website www.iba-worldwide.com.
The Company has adopted the 2009 Belgian Code of Corporate Governance as its reference Code and is in compliance therewith, including composition of the Audit Committee.
The principal characteristics of the internal control systems and risk management practices set up by IBA as part of the process of providing financial information are as follows:
After the Group has established its annual objectives, these are transferred to operational divisions, departments and each staff member. The annual evaluation procedure ensures that these objectives are followed.
The organization of the accounting and finance department contributes to this process. The Chief Executive Officer (CEO) and Chief Financial Officer (CFO) jointly agree department objectives and the CFO is then responsible for dividing these between the various levels of hierarchy.
The human resources department, working with Management, has established a library of functions detailing descriptions of the functions required in the organization of IBA Group activities. Individual responsibilities for maintaining accounts and financial information are identified in this process.
The accounting policies applied across the Group are defined in an accounting manual. This manual, which is available on the Company intranet, is followed by Company subsidiaries during their periodic accounting activities. The process of preparing consolidated financial information is supported by a collection of instructions aimed at guiding subsidiaries in the preparation of their local accounts.
Financial statements are consolidated on a monthly basis. This procedure enables any new accounting issues to be highlighted quickly.
For this purpose, the finance department works closely with the legal department, as well as with external auditors, in order to ensure adequate adaptation to changes in legislation and the evolution of accounting standards.
These efforts are made in order to meet Company objectives concerning the provision of financial information in full compliance with Company law, deadlines and quality standards.
The control of risks which could affect the procedure of establishing financial information is informal. The identification and evaluation of these risks are undertaken by the Company's management in its daily activities.
Senior management has introduced a range of control and analysis tools in order to identify, evaluate and track financial and operational risks. These include:
practice applicable throughout the Group. All employees are required to report any incidents or events likely to represent a risk to the Company to this person.
The responsibilities of each member of staff in the area of risk management are established during the allocation of tasks to be performed for the preparation of the various analysis tools.
The Board of Directors and the Audit Committee fulfill their responsibility for monitoring risk management essentially by reviewing the analysis tools introduced by senior management, such as:
The close control of risks to which the Company is exposed is undertaken by financial controllers and an internal auditor reporting to both the CFO and the Audit Committee. These two functions help to identify new operational or accounting issues, apply suitable accounting procedures and ensure the safeguarding of assets. Through their work they also remain vigilant for any situation that could resemble internal or external fraud. A program of complementary tests and specific actions is conducted if a risk situation is identified.
Controls of procedures for closing of local accounts, approval of payments, invoicing, stock management and other regular activities are organized locally. Procedures for establishing financial statements are controlled by local financial management and the management controller of the division to which the entity belongs. This is a cross structure between staff from operational divisions and financial managers of the legal entities.
Certain operations are centralized on a Group level. Members of senior management are directly involved in the ratification and approval of these operations, thus ensuring control on the completion of accounting and financial information related to:
Control activities are completed by the fact that the procedures for establishing the financial statements of the Group are applicable in all the units within the scope of consolidation. The results of audits conducted by local external auditors are shared directly with the Group's financial department.
The availability and relevance of accounting and financial information are assured by the analysis tools described above and by the information technology and data processing environment.
Although the current IT environment is heterogeneous, the computing systems are sufficiently secured by:
A portal centralizes incidents, requests for information and other requests that staff may have concerning IT services.
The IT department works with consultants based on specific requirements. Work with these service providers is defined by contract. Security measures are tested periodically in order to ensure their effectiveness. The maintenance of the IT systems is an integral part of the IT department's mission.
Accounting and financial information is communicated to Management on a monthly basis in the form of reports from the management controllers and consolidated financial statements. This information is provided directly to division presidents and financial management. The annual accounts, budget, strategic plan and follow-up on investments and treasury are presented to the Audit Committee before being submitted to the Board of Directors. Furthermore, the Board of Directors is regularly informed about the financial state of the Group via monthly management dashboards.
The communication of financial information to the market is managed by the communication, finance and legal departments of the organization. Shareholder concentration in the Belgian market allows this process to be centralized with a limited number of people, with the CFO playing a leading role. A schedule summarizing the periodic requirements for the communication of financial information is available at Group level, with details of the nature and date of each requirement. A procedure stipulates the persons responsible for preparing, approving and communicating this financial information to the market, based on whether the information is restricted or not, and commercial or financial in nature.
Evaluation of the internal control system takes place primarily when the management bodies review the financial statements and analyses prepared by the Finance Department, as well as during the follow-up on the effectiveness of internal control and risk management systems by the Audit Committee.
The analysis tools referred to above are established in line with the accounting principles validated by the Audit Committee and Board of Directors. They are adapted in function of the evolution of the Group's activities and environment as necessary. The pertinence of the information and proper application of accounting principles are reviewed by the Finance
Department during the preparation of these accounting principles and by management bodies during their successive reviews.
The CEO and CFO present and comment the financial statements to the Audit Committee and Board of Directors every quarter or more frequently if necessary. The Audit Committee receives a summary of the control reviews conducted internally, underlining weaknesses identified by the internal audit. It also receives any comments made by external auditors on the accounting decisions and evaluation rules used in the preparation of financial statements, as well as their proposed action in relation to internal control.
In accordance with the law of May 2, 2007 on the disclosure of significant holdings in issuers whose securities are traded on a regulated market and its implementing royal decree of February 14, 2008, and on the basis of article 34 of the articles of incorporation of IBA SA, IBA SA shareholders are required to report their holdings to the Financial Services and Markets Authority (FSMA) and to IBA SA whenever these holdings reach a threshold of 3%, 5%, or multiples of 5%.
In this framework, IBA SA received the following notifications:
On November 10, 2016, IBA received a transparency notification regarding Capfi Delen Asset Management NV ("Delen"). Delen purchased IBA shares with voting rights, so that as from November 10, 2016, Capfi Delen Asset Management NV held 889 372 IBA shares with voting rights. As a result, Delen owned 3.01% of IBA shares with voting right, over the 3% threshold provided in Article 34 of IBA's Articles of Association.
IBA has not received any other transparency notifications in 2016.
Further to Article 34, 5° of the Royal Decree of November 14, 2007 regarding the obligations of issuers of financial instruments admitted to trading on a regulated market, the management report of the Company exposes any legal or statutory restriction to the exercise of voting rights that may have an influence in case of a takeover bid.
Article 25 of the Company's Articles of Association provide the following limitation:
"Each share gives the right to one vote. However, no shareholder can, with its affiliated companies and persons, vote at a general assembly for more than 35% of the voting rights of the Company. Moreover, insofar other non-affiliated
shareholders holding at least 15% of the voting rights of the Company take part in the assembly, no shareholder shall be entitled, together with its affiliated persons, vote for more than 50% less one vote of the votes.
For the application of the previous alineas, is affiliated to a shareholder : (i) any company or person affiliated to it in the meaning of Article 11 of the Belgian Companies Act; (ii) any physical or moral person part of the management of the said shareholder or of a company listed under (i), (iii) any third party acting in its own name but for the account of the said shareholder or of a company listed under (i) or (ii), (iv) any shareholders that provided the said shareholder listed under (i), (ii) or (iii) with a power of attorney to represent them at the said assembly."
To the best of the Company's knowledge, there were no other relationships or special agreements among the shareholders as at December 31, 2016.
Further to the events mentioned under this section "LEGISLATION GOVERNING TAKEOVER BIDS AND TRANSPARENCY", the shareholdings of the shareholders known to IBA have undergone various modifications which can be summarized as follows:
| Situation as at | December 31, 2015 |
December 31, 2016 |
Variation | ||||
|---|---|---|---|---|---|---|---|
| Denominator | 29 115 067 | 29 764 396 | |||||
| Entity | Shares | % | Shares | % | Shares | % | |
| Belgian Anchorage SCRL | 6 204 668 | 21.30% | 6 204 668 | 20.85% | 0 | -0,46% | |
| IBA Investment SCRL | 610 852 | 2.10% | 610 852 | 2.05% | 0 | -0.05% | |
| IBA SA | 63 519 | 0.22% | 63 519 | 0.21% | 0 | -0.01% | |
| Subtotal | 6 879 039 | 23.62% | 6 879 039 | 23.11% | 0 | -0.52% | |
| UCL | 426 885 | 1.47% | 426 885 | 1,43% | 0 | -0,04% | |
| Sopartec SA | 234 531 | 0.81% | 193 801 | 0.65% | -40 730 | -0.15% | |
| Subtotal | 661 416 | 2.28% | 620 686 | 2,09% | -40 730 | -0.19% | |
| S.R.I.W. | 704 491 | 2.42% | 704 491 | 2.37% | 0 | -0.05% | |
| S.F.P.I. | 69 200 | 0.24% | 62 700 | 0.21% | -6 500 | -0.03% | |
| IRE FUP | 1 423 271 | 4.89% | 1 423 271 | 4.78% | 0 | -0.11% | |
| Capfi Delen Asset Management NV | 1 207 375 | 4.06% | |||||
| Total | 9 737 417 | 33.45% | 10 897 562 | 36.61% | |||
| Floating | 19 377 650 | 66.55% | 18 866 834 | 63.39% |
The Board of Directors is composed of nine members. The articles of incorporation and Corporate Governance Charter require a balance on the Board of Directors among outside directors, inside directors, and directors representing the shareholders.
The Board of Directors must always be made up of at least one third outside directors and one third directors appointed by the managing directors ("inside directors"). Two of the inside directors are also managing directors.
The Board of Directors meets whenever necessary, but a minimum of four times a year. The major topics of discussion include market situation, strategy (particularly as concerns acquisitions during the period), technological developments, financial developments, and human resources management.
Reports on topics dealt with at Board meetings are sent to the directors first, so that they can exercise their duties with a full knowledge of the facts.
The Board of Directors met 5 times in 2016, under the chairmanship of Mr. Pierre Mottet. Attendance at meetings of the Board was high. A large majority of the directors attended all meetings. Only one absence was recorded for all of the meetings, which represent an absentee rate of approximately 2%. The Company believes that the attendance record of individual directors is not pertinent in the context of this report.
On the proposal of the Nomination Committee, the Ordinary General Meeting of May 11, 2016 (i) approved the renewal of the term of SCS Consultance Marcel Miller represented by its director Monsieur Marcel Miller, as independent director and fixed the expiry of its term of office at the 2020 Ordinary General Meeting convened to approve the financial statements for the 2019 financial year, (ii) approved the appointment of Median Sustainability S.L (incorporated under Spanish law), represented by its manager Sybille van den Hove, as independent director and fixed the expiry of its term of office at the 2020 Ordinary General Meeting convened to approve the financial statements for the 2019 financial year.
On the proposal of the Managing Directors, , the Ordinary General Meeting of May 11, 2016 (i) approved the renewal of the term of Mr. Olivier Legrain, as internal director and fixed the expiry of its term of office at the 2020 Ordinary General Meeting convened to approve the financial statements for the 2019 financial year.
| NAME | AGE | START OF TERM |
END OF TERM |
DUTIES AT IBA | PRIMARY DUTIES OUTSIDE IBA |
|---|---|---|---|---|---|
| Olivier Legrain(1) | 48 | 2012 | AGM 2020 |
Chief Executive Officer / Internal Director / Managing Director/ NC |
N/A |
| Saint-Denis SA (represented by Pierre Mottet)(1) |
55 | 1998 | AGM 2019 |
Internal Director / Chairman of the Board of Directors / CC (president) NC (president) |
Director of UWE (Walloon Business Association), Agoria and several funds and start-ups in the field of health and environment |
| Yves Jongen(1) | 69 | 1991 | AGM 2017 |
Chief Research Officer / Internal Director / Managing Director / NC |
Before the establishment of IBA in 1986, Director of the Cyclotron Research Center of the Université Catholique de Louvain (UCL) |
| Bayrime SA (represented by Eric de Lamotte) (3) |
60 | 2000 | AGM 2017 |
Other Director / AC | Director in several companies. Former CFO of IBA (1991- 2000) |
| Consultance Marcel Miller SCS (represented by Marcel Miller) (2) |
63 | 2011 | AGM 2020 |
Independent Director / CC NC |
President Alstom Belgium / Director Agoria Wallonia / Vice-President UWE / Director Technord |
| Mary Gospodarowicz (2) | 69 | 2012 | AGM 2017 |
Independent Director |
Staff Radiation Oncologist, Radiation Medicine Program, Princess Margaret Cancer Centre, University Health Network, Toronto Medical Director, Princess Margaret Cancer Centre, University Health Network, Toronto Regional Vice-President, Cancer Care Ontario, Toronto President, Immediate Past President and member of the Board of directors, Union for International Cancer Control |
| Jeroen Cammeraat (3) | 51 | 2014 | AGM 2019 |
Independent Director / CC NC AC |
CEO i-Optics BV CEO Cassini BV |
| Katleen Vandeweyer Comm. V. (represented by K Vandeweyer) (2) |
47 | 2013 | AGM 2018 |
Independent Director / AC (president) |
CFO of Worldline SA/NV Independent director at BPost Bank |
| Median Sustainability S.L. (represented by Sybille van den Hove) (2) |
52 | 2015 | AGM 2020 |
Independent Director |
Visiting Professor Autonomous University of Barcelona. Sustainability research and advice. Former chair of the scientific committee of the European Environment Agency |
CC : Compensation Committee - NC : Nomination Committee - AC : Audit Committee
(1) In accordance with the meaning ascribed by the corporate charter to the term "Internal director", namely an internal director is a director appointed on the proposal of the managing directors.
(2) Submitted to the General Meeting as candidate independent directors on their election, without excluding the fact that other directors also fulfill the independence criteria. None of the independent directors ceased during the financial year to fulfill the independence criteria set out in the corporate charter.
(3) An other director is a director who is neither an internal director nor an independent director.
The Compensation Committee met 4 times in 2016. A report on each of its meetings was submitted to the Board.
Topics of discussion included issues relating to the 2015 bonuses, directors' compensation, and compensation schemes in general.
One absence was recorded for all of the meetings held.
At December 31, 2016, the Compensation Committee was comprised of Saint-Denis SA represented by its managing director, Mr. Pierre Mottet, of Consultance Marcel Miller SCS represented by its manager, Mr. Marcel Miller, and of Mr. Jeroen Cammeraat. The 2 latter members being independent, the Compensation Committee is thus comprised of a majority of independent directors. It is chaired by Mr. Pierre Mottet. Mr. Olivier Legrain is invited to attend, except where the Committee is called on to decide on the compensation policy or other matters relating to the managing directors.
The Nomination Committee met 4 times in 2016 for the purpose of assessing the areas of expertise needed by the Board of Directors to fill expiring directorship positions and of making proposals in this regard to the Board of Directors.
Based on its report, the Board proposed to the Ordinary General Meeting of May 11, 2016 (i) to approve the renewal of the term of SCS Consultance Marcel Miller represented by its director Monsieur Marcel Miller, as independent director and fixed the expiry of its term of office at the 2020 Ordinary General Meeting convened to approve the financial statements for the 2019 financial year and (ii) to approve the appointment of Median Sustainability S.L (incorporated under Spanish law), represented by its manager Sybille van den Hove, as independent director and fixed the expiry of its term of office at the 2020 Ordinary General Meeting convened to approve the financial statements for the 2019 financial year.
One absence was recorded for all of the meetings held.
The Nomination Committee has five members, including the Chairman of the Board of Directors and a minimum of two outside directors.
At December 31, 2016, the Nomination Committee was comprised of Saint-Denis SA represented by its managing director, Mr. Pierre Mottet, of Consultance Marcel Miller SCS represented by its manager, Mr. Marcel Miller, and of Mr Jeroen Cammeraat, Mr. Olivier Legrain and Mr. Yves Jongen. It is chaired by Mr. Pierre Mottet.
A Product Committee has been set up in 2015 as an IBA Board Committee. That Committee met 1 time in May 2016 to overview the Protontherapy product strategy, to analyse and validate the research and development projects in Protontherapy and the report his activities to the Board.
That meeting was held in the presence of several members of the Management interested by these questions. All members were present during that meeting.
As of December 31, 2016, the Product Committee was composed by Saint-Denis SA represented by his managing director, Mr. Pierre Mottet, by Ms. Mary Gospodarowicz, by Median Sustainability Sl represented by her general manager Ms. Sybille van den Hove, by Consultance Marcel Miller SCS represented by his general manager, Mr. Marcel Miller, et by Mrs. Jeroen Cammeraat, Olivier Legrain and Yves Jongen. The Committee is presided by Mr. Pierre Mottet.
The Audit Committee met 4 times in 2016, including 3 times in the presence of the external auditors, and also, each time, in the presence of the internal auditor. On each occasion, the Committee reported on its meetings to the Board of Directors. The main topics addressed were the 2015 annual results and analysis of the external auditors' Management Letter, analysis of the half-year results, monitoring of the implementation of International Financial Reporting Standards (IFRS), examination of the 2017 budget and follow-up of the internal audit and risk management.
The Company keeps close control of the risks to which it is subject through its financial controllers employed in each of the divisions. This enables the risks to be managed closely. The risks identified are transmitted up to the Management Team which reports to the Audit Committee and develops an appropriate solution, in conjunction with the Audit Committee and the insurance manager.
One absence was recorded for all of the meetings held.
At December 31, 2016, the Audit Committee was comprised of three members: Bayrime SA, represented by its managing director Mr. Eric de Lamotte, Mr Jeroen Cammeraat, and Katleen Vandeweyer Comm. V. represented by its manager Mrs. Katleen Vandeweyer. It is chaired by Mrs. Katleen Vandeweyer.
In accordance with the decision of the special shareholders' meeting of June 12, 2013, the Board of Directors is authorized to increase the capital one or more times up to a maximum of twenty-five million euros (25 000 000).
The authorized capital was not used in 2016
The day-to-day management of the Company and the authority to act for such management is delegated to two managing directors, Olivier Legrain, Chief Executive Officer, and Yves Jongen, Chief Research Officer.
The Chief Executive Officer is specifically responsible for implementing strategy and for day-to-day management and is assisted by a Management Team consisting of certain members of the corporate team and of the president of IBA Dosimetry GmbH. Together, they constitute the Group's Management Team.
The Chief Executive Officer, accompanied by the Chief Financial Officer, makes regular reports to the Board of Directors.
The Board of Directors has also asked Management Team members or division heads to report to the
Board on two topics: adoption of the strategic plan and adoption of the 2017 budget.
Management Team as at December 31, 2016:
| MANAGEMENT TEAM MEMBERS | POSITIONS |
|---|---|
| 1. Olivier Legrain (representing Lamaris Group SPRL) |
Chief Executive Officer |
| 2. Yves Jongen (representing Research Management Systems SA) |
Chief Research Officer |
| 3. Jean-Marc Bothy | Chief Strategy Officer |
| 4. Soumya Chandramouli |
Chief Financial Officer |
| 5. Rob Plompen |
President, IBA Dosimetry |
| 6. Frédéric Nolf |
Group Vice-President Human Resources |
MANAGEMENT TEAM MEMBERS
The Company is committed to the honest, ethical, and honorable conduct of its business. It believes that ethical management is the lynchpin of its continued growth and success will enable it to maintain its good reputation and achieve its strategic mission of protecting, enhancing, and saving lives. For this reason, it has worked to create a code of ethics conduct.
This code defines the fundamental principles of ethical business conduct and provides guidance for the Group's employees and co-contracting parties on such matters as business partnerships, conflicts of interest, and confidentiality. All employees have read and approved this code.
The Company has updated the code of conduct to combat insider trading and market abuse. All employees have received a copy of this code. Furthermore, executives have signed the Code for acknowledgement and consent.
Details of transactions by executives involving the Company's shares are available in the remuneration report.
The Corporate Governance Charter, published on the Group's website, defines the core competencies the Board of Directors requires to be effective. Members are nominated based on the Board's needs in terms of knowledge, experience and competence at that time, also respecting the balance between outside, inside and other directors laid down in the articles of association, the law, and the 2009 Corporate Governance Code.
The Board and the Nomination Committee fully acknowledge the benefits of diversity within the Board of Directors.
At December 31 2016, one third of the directors are woman which means that the company meets the requirements on diversity.
REMUNERATION POLICY
In accordance with IBA's Corporate Governance Charter, published on the group website, the Board of Directors determines the remuneration policy and amounts paid to non-managing directors, based on recommendations made by the Compensation Committee. It is reviewed regularly in the light of market practice.
By delegation of authority from the Board of Directors, direct or indirect remuneration paid to the managing directors is determined by the Compensation Committee in accordance with the remuneration policy defined in line with principles approved by the Board. The Committee ensures that remuneration is in line with market practice, as determined by studies performed by specialized firms. The Compensation Committee monitors and reviews the remuneration policy for management staff, adopted by the Chief Executive Officer.
For the purpose of the above and in general, the Board of Directors, the Compensation Committee and individual directors have the authority and duty, subject to the rules defined in the Corporate Governance Charter, to assign themselves sufficient resources, including the assistance of external consultants, if and when appropriate.
The remuneration policy for IBA directors has not substantially changed during 2016. A full description of the policy is included in annex 1 to this remuneration report. It is not anticipated that the policy will fundamentally change over the next two years. Both the level and structure of director remuneration continue to be monitored and reviewed on an annual basis, which may result in an adjustment when deemed necessary or appropriate.
The remuneration policy for managing directors and other Management Team members has not substantially changed during 2016. The key change implemented relates to a claw-back provision, allowing the recovery of variable payments that would be made on the basis of erroneous financial information.
The overall philosophy remains focused on IBA's ability to attract, retain and engage the executive talent it requires to deliver on its promises. A description of the policy is included in annex 2 to this remuneration report.
For managing directors and other Management Team members, total remuneration generally consists of fixed remuneration, variable remuneration, long-term incentives, retirement plan contributions and other components.
Each individual member does not necessarily benefit from each remuneration component: this is primarily dependent upon the position they hold, the nature and structure of the individual agreement and the practices in the different locations where each member is based. As a result, the weight of the different remuneration components, as part of total remuneration differs on an individual basis. In general terms, the weight of each component of remuneration accounts for a part of total remuneration that may be summarized as follows:
It is not anticipated that, the remuneration policy will fundamentally change over the next two years. The performance period under the current long-term incentive plan, for its cash component, will end on December 31, 2017, and, for its warrant component, on December 31, 2018. The design and implementation of a new plan, which may contain revised features, will be finalized in the course of 2017.
IBA continuously assesses the appropriateness of its remuneration programs in view of evolving needs and insights, both externally and internally, which may result in an adjustment when deemed necessary or appropriate.
*Under the current long-term incentive plan, the annualized value of long-term incentives granted represented here corresponds to the sum of 25% of the target cash-based incentive granted in 2014 (i.e., the target payout over the four-year performance period prorated to one year) and 22.22% of the economic value of the warrants granted under the 2014 Warrant Plan (i.e., the economic value over the 4.5 years vesting period prorated to one year). The value has not been discounted to account for full vesting at the end of the respective performance or vesting periods, or considering any assessment of vesting or payout probability. More details on the plan design are included in annex 2 to this remuneration report.
The schedule below outlines the total remuneration received by each director related to their membership of the Board of Directors.
| BOARD MEMBER | TOTAL FEES | LUMP-SUM FEE | MEETING RELATED | |
|---|---|---|---|---|
| (EUR) | (EUR) | FEES* (EUR) | ||
| Olivier Legrain (internal director, Managing Director, CEO) |
None | None | BM AC NC CC MAC PC Other |
None N/A None N/A N/A None None |
| Yves Jongen (internal director, Managing Director, Chief Research Officer) |
None | None | BM AC NC CC MAC PC Other |
None N/A None N/A N/A None None |
| Saint-Denis SA, represented by Pierre Mottet (internal director, Chairman of the Board, President of the Nomination Committee, President of the Compensation Committee) |
63 000 | 12 000 | BM AC NC CC MAC PC Other |
30 000 3 000 6 000 6 000 N/A 6 000 N/A |
| Mary Gospodarowicz (independent director) |
18 800 | 6 000 | BM AC NC CC MAC PC Other |
11 200 N/A N/A N/A N/A N/A 1 600 |
| SCS Consultance Marcel Miller, represented by Marcel Miller (independent director) |
31 600 | 6 000 | BM AC NC CC MAC PC Other |
16 000 N/A 3 200 3 200 N/A 3 200 N/A |
| Bayrime SA, represented by Eric de Lamotte (other director) |
26 800 | 6 000 | BM AC NC CC MAC PC Other |
16 000 4 800 N/A N/A N/A N/A N/A |
| Jeroen Cammeraat (independent director) |
38 000 | 6 000 | BM AC NC CC MAC PC Other |
16 000 6 400 3 200 3 200 N/A 3 200 N/A |
| Katleen Vandeweyer Comm.V., represented by Katleen Vandeweyer (independent director, President of the Audit Committee) |
35 400 | 9 000 | BM AC NC CC MAC PC Other |
16 000 8 800 N/A N/A N/A N/A 1 600 |
| Median Sustainability SL, represented by Sybille van den Hove (independent director) |
28 400 | 6 000 | BM AC NC CC MAC PC Other |
16 000 N/A N/A N/A N/A 3 200 3 200 |
* BM – Board meeting; AC – Audit Committee meeting; NC – Nomination Committee meeting; CC – Compensation Committee meeting; MAC – Mergers & Acquisitions Committee meeting; PC – Product Committee meeting. N/A indicates that the director is not a member of the Committee or that no Committee meeting has taken place; Other – Attendance of other meetings, in this case the proton therapy user meeting and/or strategic meetings.
In 2016, the total remuneration directly or indirectly received by the CEO, Mr. Olivier Legrain, or by companies he controls was as follows. Fixed remuneration amounted to EUR 357 224. Variable remuneration, in cash, amounted to EUR 423 000, in relation to performance during fiscal year 2015, reflecting, in line with the remuneration policy in annex 2 to this remuneration report, overachievement both in terms of collective performance at Group level and in terms of individual performance. Variable remuneration in relation to fiscal year 2016 will be paid in 2017 and is not yet known at the time of finalization of this report.
The total cash remuneration amounted to EUR 780 224. All payments referred as made directly or indirectly to the CEO in this report are the aggregate of payments made to Mr Legrain and to Lamaris Group SPRL, a company controlled by Mr Legrain, which provides services to the Group. The Chief Executive Officer has not directly or indirectly received any other form of remuneration in 2016, except through his participation in the long-term incentive plan as described below.
Total cash remuneration, including fixed remuneration and variable remuneration (as defined in the remuneration policy in annex 2 to this remuneration report), directly or indirectly received, under any agreement or in any form, by Management Team members excluding the Chief Executive Officer amounted to EUR 1 746 890 in 2016. This amount includes fixed remuneration for a total amount of EUR 1 076 930 and variable remuneration for a total amount of EUR 557 925. Variable remuneration relates to performance in fiscal year 2015 and, on average, reflects, in line with the remuneration policy, overachievement in terms of collective performance and on-target individual performance. Variable remuneration in relation to fiscal year 2016 is paid in 2017 and is not yet known at the time of finalization of this report.
Other remuneration of members of the Management Team excluding the Chief Executive Officer, received in 2016, includes i) contributions to retirement plans for a total amount of EUR 38 197, ii) other remuneration components for a total amount of EUR 73 838. Retirement plans are defined contribution type of plans. Other remuneration components mainly include participation in personal risk insurance programs, company cars, meal vouchers, all in line with local practice where the Management Team members are based.
Besides the CEO, the Group Management Team is comprised of the following members:
| MANAGEMENT TEAM MEMBER | POSITION | CHANGES IN 2016 |
|---|---|---|
| Yves Jongen | Chief Research Officer | None |
| (Managing Director and representative of Research Management Systems SA) |
||
| Jean-Marc Bothy | Chief Strategy Officer | As June 1, 2016, Chief Financial Officer until May 31, 2016 |
| Soumya Chandramouli | Chief Financial Officer | As of June 1, 2016 |
| Frédéric Nolf | Chief Human Resources & Sustainability Officer |
None |
| Rob Plompen | President, IBA Dosimetry | None |
The managing directors, including the Chief Executive Officer, and the other members of the Management Team do not receive shares as part of their remuneration. They participate in IBA's long-term incentive plan, implemented in the course of 2014.
For managing directors, including the Chief Executive Officer, and the other members of the Management Team, the plan directly or indirectly combines a cashbased incentive and a grant of warrants under IBA's 2014 Warrant Plan, following the terms and conditions outlined in annex 2 to this remuneration report.
In 2016, no additional long-term incentives – either in the form of a cash-based incentive or in the form of warrants – have been granted to the managing directors, including the Chief Executive Officer, and the other members of the Management Team, except to Ms Soumya Chandramouli, whose participation in the plan has been reviewed following her integrating the Group Management Team as of June 1, 2016. In accordance with the plan rules outlined in annex 2 to this remuneration report, her target payout under the cash-based portion of the plan has increased to 100% of annual fixed remuneration.
The schedule below details, on an individual basis, the stock options exercised and expired in 2016:
| WARRANTS EXERCISED IN 2016 | WARRANTS EXPIRED IN 2016 | ||||
|---|---|---|---|---|---|
| MANAGEMENT TEAM MEMBER | WARRANTS (NUMBER) |
EXERCISE PRICE (EUR) |
GRANT DATE (YEAR) |
WARRANTS (NUMBER) |
GRANT DATE (YEAR) |
| Olivier Legrain | 8 000 31 357 |
5,03 4,78 |
2011 2012 |
None | N/A |
| Yves Jongen | 6 477 50 078 |
7,80 5,03 |
2010 2011 |
None | N/A |
| Jean-Marc Bothy | 5 153 16 990 |
5,03 4,78 |
2011 2012 |
None | N/A |
| Soumya Chandramouli | 400 1 000 900 |
7,80 5,03 4,78 |
2010 2011 2012 |
None | N/A |
| Frédéric Nolf | 4 262 1 033 5 836 |
19,94 7,80 5,03 |
2007 2010 2011 |
None | N/A |
| Rob Plompen | 8 610 2 629 8 144 12 003 |
4,78 7,80 5,03 4,78 |
2012 2010 2011 2012 |
None | N/A |
The schedule below summarizes the main contractual arrangements, concerning each member of the Management Team, including the Chief Executive Officer, or companies they control, in relation to termination at the initiative of the Company.
| MANAGEMENT TEAM MEMBER | TERMINATION ARRANGEMENT |
|---|---|
| Lamaris Group SPRL, represented by Olivier Legrain | The agreement, started in 2011, provides six months' notice or equivalent compensation. |
| Research Management Systems SA, represented by Yves Jongen |
The agreement, started before 2009 and amended in 2012, provides twelve months' notice or equivalent compensation. |
| Jean-Marc Bothy | The agreement, started before 2009, provides three months' notice per initiated period of five years' service, or equivalent compensation. For service accrued as of January 1, 2014, this clause will be subordinate to the application of the new legislation in effect as from that date. The agreement also contains a non competition obligation for nine months against 50% of remuneration over the same period, unless it is waived. |
| Soumya Chandramouli | The agreement, started before 2009, provides three months' notice per initiated period of five years' service, or equivalent compensation. For service accrued as of January 1, 2014, this clause will be subordinate to the application of the new legislation in effect as from that date. The agreement also contains a non competition obligation for nine months against 50% of remuneration over the same period, unless it is waived. |
| Frédéric Nolf | The agreement, started before 2009, provides three months' notice per initiated period of five years' service, or equivalent compensation. For service accrued as of January 1, 2014, this clause will be subordinate to the application of the new legislation in effect as from that date. The agreement also contains a non competition obligation for nine months against 50% of remuneration over the same period, unless it is waived. |
| Rob Plompen | The agreement, started before 2009, provides twelve months' notice or equivalent compensation. |
In 2016, IBA directors have been remunerated by an annual lump-sum fee of EUR 6 000, except the Chairman of the Board, who has received an annual lump-sum fee of EUR 12 000, and the Chairman of the Audit Committee, who has received an annual lumpsum fee of EUR 9 000.
The annual lump-sum fee is supplemented with a fixed fee of EUR 1 600 per Board or committee meeting the director has been invited to and which he has attended. The Chairman of the Board receives EUR 3 000 per meeting attended. The Chairman of the Audit Committee receives EUR 2 200 per Audit Committee meeting attended and EUR 1 600 per other meeting attended. The fixed fees are on a halfday basis and adjusted per half day if required.
Non-managing directors have not received any form of variable remuneration – related to individual or collective performance, or otherwise – and no other form of fixed, equity-based or in-kind remuneration in the course of 2016.
Managing directors do not receive specific director remuneration. The remuneration they receive for their direct or indirect role in the company includes compensation for their director responsibilities.
At present, it is not anticipated that the policy will fundamentally change over the next two years. Both the level and structure of director remuneration are monitored and reviewed on an annual basis, which may result in an adjustment when deemed necessary or appropriate.
The key purpose of IBA's remuneration philosophy is to ensure the Company is able to attract, retain and engage the executive talent it requires to deliver on its promises towards its various stakeholders – including its clients and patients, its shareholders, its employees, society in general and the earth –, whilst aligning to their respective interests.
The structure and levels of remuneration, in general, must be effective in meeting these objectives. In particular, remuneration programs and decisions at all times meet the following criteria:
The remuneration structure at IBA contains both monetary and non-monetary components. The monetary components consist of annual fixed remuneration, annual variable remuneration, longterm incentives and, where appropriate, other components – such as benefit programs and benefits in kind.
External competitiveness currently is assessed by reference to a general cross-section of companies active in the markets where the executives are based. At present, IBA aims to position executive remuneration, in case of solid performance, at or around the median of the market reference.
At present, it is not anticipated that, in the next two years, the policy will fundamentally change. IBA does, however, continuously assess the appropriateness of its remuneration programs in view of evolving needs and insights, both externally and internally, which may result in an adjustment when deemed necessary or appropriate.
Annual fixed remuneration is a cash component of remuneration, defined in accordance with an individual's position, as well as his or her competencies and experience in the position. It is reviewed every year and not automatically increased, except where mandatory.
The annual variable remuneration program rewards performance against specified objectives, defined and formalized at the beginning of the performance period. Payout levels currently are targeted at between 30% and 100% of direct or indirect annual fixed remuneration, depending on the position. Actual payout levels are, for 50%, subject to collective performance at Group level (or, for the President IBA Dosimetry only, at business unit level), and, for 50%, subject to individual performance.
At Group and business unit levels, collective performance is currently measured based on profit before tax and order intake targets, geared towards achieving the fiscal year 2016 guidance provided to the market, including a top line revenue growth of above 20% and a REBIT margin of 11% for the year.
At the individual level, quantitative and qualitative objectives are focused on delivering the business strategy and reflect specific strategic challenges at Group or business unit level, including i) the execution of the clinical and technology roadmaps, ii) organizational, cultural and talent management objectives in view of the Group's growth, as well as iii) targeted actions towards the Company's stakeholders – clients and patients, shareholders, employees, the society in general and the earth. At the end of the performance period, for each measure, actual levels of achievement are positioned against the predefined targets and are consolidated, resulting in an overall percentage of performance that is applied to the target payout levels. The maximum payout is set at 150% of target in case of exceptional collective and individual performance, whilst performance below expectations results in a zero payout.
The performance period is the fiscal year. In accordance with the articles of association the Compensation Committee has decided not to include performance targets over a period exceeding one year.
Managing directors and other Management Team members do not participate in IBA's global performance-based profit sharing plan.
The managing directors are not present at the Board and Compensation Committee meetings where their performance and variable payout levels are discussed and decided.
At present, agreements with the managing directors and members of the Management Team do contain claw-back provisions in relation to variable payments that would be made on the basis of erroneous financial information.
The current long-term incentive plan is aimed at supporting the Company's multi-year profitability targets, the alignment of plan participants with shareholder interests and longer-term shareholder value creation, as well as creating a suitable retention effect. The plan is two-tiered, directly or indirectly combining a cash-based incentive with a grant of warrants.
The cash-based incentive has been implemented in 2014 and is linked to actual cumulative profit before tax over the period 2014 – 2017 compared to a predefined target aligned to the Group strategic plan and the guidance provided to the market in this respect. Vesting occurs in full at the end of 2017, subject to each participant's continued service up to that date and subject to a threshold backlog requirement being met on the same date. The target payout is equal to 100% of annual fixed remuneration directly or indirectly received, except for the Chief Executive Officer, for whom it is 200%. The maximum payout upon superior performance is set at 200% of the target payout. Poor performance results in a zero payout. Satisfactory individual performance, for each calendar year included in the performance period, operates as an additional threshold under the plan, reducing the actual payout by 25% for each year that the individual performance is below expectations. Individual overachievement does not result in an increased payout under the plan. No new cash-based incentive has been implemented in 2015 and 2016.
A grant of warrants has been made in 2014 under IBA's 2014 Warrant plan. The number of warrants amounted to 50.000 for the Chief Executive Officer and 10.000 for the other Management Team members in office at that time, all at an exercise price equal to the fair market value of the share at grant, i.e., EUR 11,52. Vesting occurs in full on December 31, 2018, subject to each participant's continued service up to that date, without further performance conditions. The warrants expire 10 years following grant. No new grant of warrants has been made in 2015 and 2016.
As the vesting under the current long-term incentive plan, for its cash component, will end on December 31, 2017, and, for its warrant component, on December 31, 2018, the design and implementation of a new plan, which may contain revised features, are currently investigated and will be finalized in the course of 2017. In addition to the plan objectives stated above, particular attention will be given to ensuring an appropriate balance with regard to the interests of the various Company stakeholders identified – clients and patients, shareholders, employees, the society in general and the earth.
Depending on the terms and conditions of their agreement and the programs in place where the individual is based, managing directors and members of the Management Team may participate in a retirement plan. These plans follow market practice in the countries where they apply. They are generally defined contribution type of plans or plans where there is no funding risk for the Company.
Similar as for retirement contributions, managing directors and members of the Management Team may be entitled to other remuneration components as per their agreement and the programs in place in their respective country. These mainly include participation in IBA's insurance programs (often covering life insurance, disability, travel insurance and medical care), company cars or car allowances, and other elements like meal vouchers or meal subsidies. All components follow local market practice in the country where the individual is based.
DECEMBER 31, 2016
Ion Beam Applications SA (the "Company" or the "Parent"), founded in 1986, and its subsidiaries (together, the "Group" or "IBA") are committed to technological progress in the field of cancer diagnosis and therapy and deliver efficient, dependable solutions providing unequaled precision. IBA also offers innovative solutions for everyday hygiene and safety.
The Company is a limited company incorporated and domiciled in Belgium. The address of its registered office is Chemin du Cyclotron, 3; B-1348 Louvain-la-Neuve, Belgium.
The Company is listed on the pan-European Euronext stock exchange (B-compartment) and is included in the BEL Mid Index.
Consequently, IBA has agreed to follow certain rules to enhance the quality of financial information provided to the market. These rules include:
These consolidated financial statements were approved for release by the Board of Directors on March 22, 2017.
| Note | December 31, 2015 | January 1, 2016 (*) | December 31, 2016 | |
|---|---|---|---|---|
| (EUR 000) | (EUR '000) | (EUR 000) | ||
| ASSETS | ||||
| Goodwill | 8 | 3 821 | 3 821 | 3 821 |
| Other intangible assets | 8 | 8 629 | 8 629 | 9 972 |
| Property, plant and equipment | 9 | 9 327 | 9 327 | 16 322 |
| Investments accounted for using the equity method |
11 | 1 888 | 1 888 | 1 402 |
| Other investments | 11 | 7 116 | 7 116 | 8 909 |
| Deferred tax assets | 12 | 23 221 | 23 221 | 22 796 |
| Long-term financial assets | 22 | 779 | 779 | 2 171 |
| Other long-term assets | 13 | 16 691 | 16 691 | 18 467 |
| Non-current assets | 71 472 | 71 472 | 83 860 | |
| Inventories and contracts in progress | 14 | 99 959 | 99 959 | 132 702 |
| Trade receivables | 15 | 59 938 | 59 938 | 65 736 |
| Other receivables | 15 | 81 846 | 81 846 | 22 409 |
| Short-term financial assets | 22 | 422 | 422 | 1 346 |
| Cash and cash equivalents | 16 | 81 715 | 81 715 | 74 564 |
| Current assets | 323 880 | 323 880 | 296 757 | |
| TOTAL ASSETS | 395 352 | 395 352 | 380 617 | |
| EQUITY AND LIABILITIES | ||||
| Capital stock | 17 | 40 864 | 40 864 | 41 776 |
| Capital surplus | 17 | 37 329 | 37 329 | 40 618 |
| Treasury shares | 17 | -8 502 | -8 502 | -8 502 |
| Reserves | 18 | 11 675 | 8 637 | 9 496 |
| Currency translation difference | 18 | -1 993 | -1 993 | -1 367 |
| Retained earnings | 18 | 84 259 | 84 259 | 68 370 |
| Capital and reserves | 163 632 | 160 594 | 150 391 | |
| Non-controlling interests | 0 | 0 | 0 | |
| EQUITY | 163 632 | 160 594 | 150 391 | |
| Long-term borrowings | 19 | 15 220 | 15 220 | 27 750 |
| Long-term financial liabilities | 22 | 879 | 879 | 1 423 |
| Deferred tax liabilities | 12 | 697 | 697 | 582 |
| Long-term provisions | 20 | 5 896 | 8 934 | 10 112 |
| Other long-term liabilities | 21 | 3 162 | 3 162 | 3 916 |
| Non-current liabilities | 25 854 | 28 892 | 43 783 | |
| Short-term provisions | 20 | 7 007 | 7 007 | 6 311 |
| Short-term borrowings | 19 | 16 454 | 16 454 | 2 151 |
| Short-term financial liabilities | 22 | 2 110 | 2 110 | 3 006 |
| Trade payables | 23 | 44 887 | 44 887 | 56 041 |
| Current income tax liabilities | 75 | 75 | 90 | |
| Other payables | 24 | 135 333 | 135 333 | 118 844 |
| Current liabilities | 205 866 | 205 866 | 186 443 | |
| TOTAL LIABILITIES | 231 720 | 234 758 | 230 226 | |
| TOTAL EQUITY AND LIABILITIES | 395 352 | 395 352 | 380 617 |
(*) see note 1.2.1 change in accounting policy for employee benefit.
| Note | December 31, 2015 | December 31, 2016 | |
|---|---|---|---|
| (EUR 000) | (EUR 000) | ||
| Sales | 195 091 | 242 013 | |
| Services Cost of sales and services (-) |
75 266 -156 702 |
86 761 -190 213 |
|
| Gross profit | 113 655 | 138 561 | |
| Selling and marketing expenses | 24 528 | 27 651 | |
| General and administrative expenses | 32 827 | 41 424 | |
| Research and development expenses | 26 747 | 32 350 | |
| Other operating expenses | 25 | 12 886 | 8 173 |
| Other operating (income) | 25 | -45 420 | -244 |
| Financial expenses | 26 | 7 807 | 5 780 |
| Financial (income) | 26 | -11 034 | -4 327 |
| Share of (profit)/loss of companies consolidated using the equity method | 11 | 122 | -145 |
| Profit/(loss) before taxes | 65 192 | 27 899 | |
| Tax (income)/expenses | 27 | 3 930 | 3 359 |
| Profit/(loss) for the period from continuing operations | 61 262 | 24 540 | |
| Profit/(loss) for the period from discontinued operations | -73 | -100 | |
| Profit/(loss) for the period | 61 189 | 24 440 | |
| Attributable to : | |||
| Equity holders of the parent | 61 189 | 24 440 | |
| Non-controlling interests | 0 | 0 | |
| 61 189 | 24 440 | ||
| Earnings per share from continuing operations and discontinued operations (EUR per share) |
|||
| - Basic |
35 | 2.172 | 0.850 |
| - Diluted |
35 | 2.094 | 0.829 |
| Earnings per share from continuing (EUR per share) | |||
| - Basic |
35 | 2.175 | 0.854 |
| - Diluted |
35 | 2.097 | 0.832 |
| Earnings per share from discontinued operations (EUR per share) | |||
| - Basic |
35 | -0.003 | -0.004 |
| - Diluted |
35 | -0.003 | -0.003 |
Note: The above consolidated income statement recognizes the transactions between discontinued operations and continuing operations as third-party transactions.
| December 31, 2015 (EUR 000) |
December 31, 2016 (EUR 000) |
|
|---|---|---|
| Profit/(loss) for the period | 61 189 | 24 440 |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: |
||
| - Exchange differences on translation of foreign operations | 1 323 | 139 |
| Exchange differences on translation of foreign operations | 997 | 139 |
| Reclassification adjustment of CTA following IAS 21.48 | 326 | 0 |
| - Reserves movements of investments accounted for using the equity method | 557 | 72 |
| Currency translation difference | 557 | 72 |
| - Exchange difference related to permanent financing | -148 | 415 |
| - Net movement on cash flow hedges | -345 | 735 |
| Net other comprehensive income to be reclassified to profit or loss in subsequent periods |
1 387 | 1 361 |
| Other comprehensive income not to be reclassified to profit or loss in subsequent periods : |
||
| - Reserves movements in post-employment benefit reserves | 0 | -425 |
| Net other comprehensive income not to be reclassified to profit or loss in subsequent periods |
0 | -425 |
| Total comprehensive income for the year | 62 576 | 25 376 |
.
| EUR 000 | Attributable to equity holders of the parent | TOTAL | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital stock |
Capital surplus |
Treasury shares |
Hedging reserves |
Other reserves – value of stock option plans and share-based compensation |
Other reserves – reserves movements of investment accounted for using the equity method |
Other reserves – defined benefit plans |
Other reserves - Other |
''Reverse convertible bond'' S.R.I.W. |
Currency translation difference |
Retained earnings |
Shareholders ' equity and reserves |
|
| Balance at 01/01/15 | 39 852 | 32 431 -8 612 | -2 891 | 14 167 | 4 335 | 0 175 |
5 000 | -3 725 | 26 794 | 107 526 | ||
| Other comprehensive income |
0 | 0 | 0 | -345 | 0 | 0 | 0 | 0 | 0 | 2 058 | 0 | 1 713 |
| Profit/(loss) for the period excluding IAS 21.48 impact |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 60 863 | 60 863 |
| Profit/(loss) IAS 21.48 impact |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -326 | 326 | 0 |
| Total comprehensive income for the period |
0 | 0 | 0 | -345 | 0 | 0 | 0 | 0 | 0 | 1 732 | 61 189 | 62 576 |
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5 216 | -5 216 |
| Employee stock options and share-based payments |
0 | 0 | 0 | 0 | 569 | 0 | 0 | 0 | 0 | 0 | 0 | 569 |
| (Acquisitions)/sales of treasury shares |
0 | 0 | 110 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 120 | 230 |
| Increase/ (decrease) in capital stock/ capital surplus |
1 012 | 4 898 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 910 |
| Other changes | 0 | 0 | 0 | 0 | 0 | -4 335 | 0 | 0 | -5 000 | 0 | 1 372 | -7 963 |
| Balance at 31/12/15 | 40 864 | 37 329 | -8 502 | -3 236 | 14 736 | 0 | 0 | 175 | 0 | -1 993 | 84 259 | 163 632 |
| Balance at 31/12/15 | 40 864 | 37 329 | -8 502 | -3 236 | 14 736 | 0 | 0 | 175 | 0 | -1 993 | 84 259 | 163 632 |
| Change in accounting policies (*) |
0 | 0 | 0 | 0 | 0 | 0 | -3 038 | 0 | 0 | 0 | 0 | -3 038 |
| Balance at 01/01/16 | 40 864 | 37 329 | -8 502 | -3 236 | 14 736 | 0 | -3 038 | 175 | 0 | -1 993 | 84 259 | 160 594 |
| Other comprehensive income |
0 | 0 | 0 | 735 | 0 | 0 | -425 | 0 | 0 | 626 | 0 | 936 |
| Profit/(loss) for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24 440 | 24 440 |
| Total comprehensive income for the period |
0 | 0 | 0 | 735 | 0 | 0 | -425 | 0 | 0 | 626 | 24 440 | 25 376 |
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -40 329 | -40 329 |
| Employee stock options and share-based payments |
0 | 0 | 0 | 0 | 549 | 0 | 0 | 0 | 0 | 0 | 0 | 549 |
| Increase/ (decrease) in capital stock/ capital surplus |
912 | 3 289 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 201 |
| Balance at 31/12/16 | 41 776 | 40 618 | -8 502 | -2 501 | 15 285 | 0 | -3 463 | 175 | 0 | -1 367 | 68 370 | 150 391 |
As at December 31, 2105, other changes in retained earnings consist of the reclassification from other reserve of the other comprehensive income not to be reclassified to profit or loss in subsequent periods relating to actuarial gain on employee benefit provisions of Rose Holding SARL.
(*) see note 1.2.1 change in accounting policy for employee benefit.
| Note | December 31, 2015 (EUR 000) |
December 31, 2016 (EUR 000) |
|
|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Net profit/(loss) for the period | 61 189 | 24 440 | |
| Adjustments for : | |||
| Depreciation and impairment of tangible assets | 9 | 1 873 | 2 451 |
| Depreciation and impairment of intangible assets and goodwill | 8 | 2 226 | 2 219 |
| Write-off on receivables | 15 | -49 | 253 |
| Changes in fair value of financial assets (profits)/losses | -814 | -141 | |
| Changes in provisions | 20 | -1 217 | 2 579 |
| Deferred taxes | -107 | 398 | |
| Share of result of associates and joint ventures accounted for using the equity method |
11 | 63 | -145 |
| Other non-cash items – impact of IAS 21.48 | -326 | 0 | |
| Other non-cash items | 29 | 3 012 | -250 |
| Net cash flow changes before changes in working capital | 65 850 | 31 804 | |
| Trade receivables, other receivables and deferrals | -8 994 | -10 445 | |
| Inventories and contracts in progress | 14 982 | -53 024 | |
| Trade payables, other payables and accruals | 11 774 | 17 530 | |
| Other short-term assets and liabilities | -37 256 | -1 455 | |
| Changes in working capital | -19 494 | -47 394 | |
| Net income tax paid/received | -2 211 | -2 510 | |
| Interest expense | 1 388 | 1 190 | |
| Interest income | -139 | ||
| -108 | |||
| Net cash (used)/generated from operations CASH FLOW FROM INVESTING ACTIVITIES |
45 394 | -17 018 | |
| Acquisition of property, plant and equipment | 9 | -2 484 | -9 406 |
| Acquisition of intangible assets | 8 | -1 821 | -3 559 |
| Disposals of fixed assets | 23 | 1 | |
| Acquisition of subsidiaries net of acquired cash | 7 | 76 | |
| Acquisition of third-party and equity-accounted investments | 11.2 | -7 083 | 0 |
| Disposals of subsidiaries | 6 781 | -1 793 | |
| Disposals of other investments and equity method accounted companies, net of assigned cash |
20 | 0 63 437 |
|
| Other investing cash flows | 29 | 10 000 | -380 |
| Net cash (used)/generated from investing activities | 5 512 | 48 300 | |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Proceeds from borrowings | 19 | 0 | 15 750 |
| Repayment of borrowings | 19 | -5 201 | -17 524 |
| Interest paid | -1 510 | -920 | |
| Interest received | 139 | 108 | |
| Capital increase (or proceeds from issuance of ordinary shares) | 17 | 5 910 | 4 201 |
| Dividends paid | -5 216 | -40 347 | |
| (Acquisitions)/disposal of treasury of shares | 230 | 0 | |
| Other financing cash flows | 29 | 68 | -49 |
| -38 781 | |||
| Net cash (used)/generated from financing activities | -5 580 | ||
| Net cash and cash equivalents at beginning of the year | 37 176 | 81 715 | |
| Net change in cash and cash equivalents | 45 326 | ||
| Exchange (profits)/losses on cash and cash equivalents | -787 | -7 499 348 |
|
| Net cash and cash equivalents at end of the year | 16 | 81 715 | 74 564 |
The Group has chosen to present the cash flow statement using the indirect method.
| 1. Summary of significant Group accounting policies | 75 |
|---|---|
| 2. Description of financial risk management policies | 93 |
| 3. Critical accounting estimates and judgments | 101 |
| 4. Operating segments | 103 |
| 5. Lists of subsidiaries and equity-accounted investments | 107 |
| 6. Discontinued operations | 108 |
| 7. Business combinations and other changes in the composition of the Group | 109 |
| 8. Goodwill and other intangible assets | 110 |
| 9. Property, plant and equipment | 112 |
| 10. Lease arrangements | 113 |
| 11. Investments accounted for using the equity method and other investments | 113 |
| 12. Deferred taxes | 117 |
| 13. Other long-term assets | 118 |
| 14. Inventories and contracts in progress | 118 |
| 15. Trade and other receivables | 119 |
| 16. Cash and cash equivalents | 120 |
| 17. Capital stock and share-based plans | 121 |
| 18. Reserves | 123 |
| 19. Borrowings | 124 |
| 20. Long-term and short-term provisions | 128 |
| 21. Other long-term liabilities | 129 |
| 22. Other financial assets and liabilities | 130 |
| 23. Trade payables | 131 |
| 24. Other payables | 131 |
| 25. Other operating expenses and income | 132 |
| 26. Financial expenses and income | 133 |
| 27. Income taxes | 134 |
| 28. Employee benefits | 135 |
| 29. Cash flow statement | 136 |
| 30. Litigation | 136 |
| 31. Commitments | 137 |
| 32. Related party transactions | 138 |
| 33. Fees for services rendered by the statutory auditors | 140 |
| 34. Events after the balance sheet date | 140 |
| 35. Net earnings per share | 141 |
The main IFRS accounting principles applied by the Group in preparing the IFRS consolidated financial statements are presented below.
IBA's consolidated financial statements for the year ended December 31, 2016 have been prepared in compliance with IFRS ("International Financial Reporting Standards") and IFRIC interpretations ("International Financial Reporting Interpretations Committee") adopted by the European Union, issued and effective or issued and early adopted at December 31, 2016.
These financial statements have been prepared on a historical cost basis, except for financial instruments (Derivative, AFS) that have been measured at fair value.
These financial statements have been prepared on an accruals basis and on the assumption that the entity is a going concern and will continue to operate in the foreseeable future.
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires Management to exercise judgment in the process of applying the Company's accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3.
The accounting principles used to prepare the Group's annual financial statements are the same as those used for the year ended December 31, 2015, with the exception of the following points.
The entity applied the same IFRSs as those adopted in the previous years, except for the new IFRSs and interpretations the entity adopted as of 1st January 2016.
The accounting policies adopted in the preparation of the consolidated financial statements for the year ended 31 December 2016 are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2015, except for the change presented below and for the adoption of new standards and interpretations effective as of 1 January 2016.
The Group operates a contribution based plan funded through payments to an insurance company. The employer guarantees a minimum return on employer contributions resulting in a financial risk to be borne by the Group.
Up to December 31, 2015, the Group had opted to account for these plans using the intrinsic value method.
Following the evolution with respect of minimum guaranteed return, the plans are to be considered as defined benefit plans instead of contribution plans following IAS 19. As a result, the Group has changed its valuation rule and has adopted the projected unit credit method.
The impact on the financial statements is a provision of EUR 3.04 million recorded against reserves in equity in the restated financial position as of January 1, 2016.
The employee benefit provisions have been calculated on the basis of the following assumptions at January 1, 2016 :
Discount rate: 0.7% or 1.5% based the respective duration of each plan Mortality table: IABE Inflation rate: 1.6% Salary adjustment rate: 2% per annum Retirement age: 60
And at December 31, 2016 : Discount rate: 1.69%, 1.43% or 1.03% based the respective duration of each plan Mortality table: IABE
Inflation rate: 1.6% Salary adjustment rate: 1.9% or 1.6% per annum Retirement age: 65
The nature and the impact of each of the following new standards, amendments and/or interpretations are described below:
The amendments address issues that have arisen in applying the investment entities exception under
IFRS 10 Consolidated Financial Statements. The amendments to IFRS 10 clarify that the exemption from presenting consolidated financial statements applies to a parent entity that is a subsidiary of an investment entity, when the investment entity measures all of its subsidiaries at fair value.
Furthermore, the amendments to IFRS 10 clarify that only a subsidiary of an investment entity that is not an investment entity itself and that provides support services to the investment entity is consolidated. All other subsidiaries of an investment entity are measured at fair value. The amendments to IAS 28 Investments in Associates and Joint Ventures allow the investor, when applying the equity method, to retain the fair value measurement applied by the investment entity associate or joint venture to its interests in subsidiaries. These amendments are applied retrospectively and became effective for annual periods beginning on or after 1 January 2016. The amendments do not have any impact on the Group as the Group does not apply the consolidation exception.
The amendments to IFRS 11 require that a joint operator accounting for the acquisition of an interest in a joint operation, in which the activity of the joint operation constitutes a business must apply the relevant IFRS 3 Business Combinations principles for business combinations accounting. The amendments also clarify that a previously held interest in a joint operation is not remeasured on the acquisition of an additional interest in the same joint operation if joint control is retained. In addition, a scope exclusion has been added to IFRS 11 to specify that the amendments do not apply when the parties sharing joint control, including the reporting entity, are under common control of the same ultimate controlling party. The amendments apply to both the acquisition of the initial interest in a joint operation and the acquisition of any additional interests in the same joint operation. The amendments are applied prospectively and became effective for annual periods beginning on or after 1 January 2016. These amendments do not have any impact on the Group as there has been no interest acquired in a joint operation during the period.
The amendments to IAS 1 clarify, rather than significantly change, the existing IAS 1 requirements. The amendments clarify:
Furthermore, the amendments clarify the requirements that apply when additional subtotals are presented in the statement of financial position and the statement(s) of profit or loss and OCI. The amendments became effective for annual periods beginning on or after 1 January 2016. These amendments do not have any impact on the Group.
Amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets – Clarification of Acceptable Methods of Depreciation and Amortisation
The amendments clarify the principle in IAS 16 and IAS 38 that revenue reflects a pattern of economic benefits that are generated from operating a business (of which the asset is part) rather than the economic benefits that are consumed through use of the asset. As a result, a revenue-based method cannot be used to depreciate property, plant and equipment and may only be used in very limited circumstances to amortise intangible assets. The amendments are applied prospectively and became effective for annual periods beginning on or after 1 January 2016. The amendments do not have any impact on the Group, given that it has not used a revenue-based method to depreciate its non-current assets.
The amendments change the accounting requirements for biological assets that meet the definition of bearer plants. Under the amendments, biological assets that meet the definition of bearer plants will no longer be within the scope of IAS 41. Instead, IAS 16 will apply. After initial recognition, bearer plants will be measured under IAS 16 at accumulated cost (before maturity) and using either the cost model or revaluation model (after maturity). The amendments also require that produce that grows on bearer plants will remain in the scope of IAS 41 measured at fair value less costs to sell. For government grants related to bearer plants, IAS 20 Accounting for Government Grants and Disclosure of Government Assistance will apply. The amendments are applied retrospectively and became effective for annual periods beginning on or after 1 January 2016. The amendments do not have any impact on the Group as it does not have any bearer plants.
The amendments allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. Entities already applying IFRS and electing to change to the equity method in their separate financial statements have to apply that change retrospectively. The amendments became effective for annual periods beginning on or after 1 January 2016. These amendments do not have any impact on the Group's consolidated financial statements.
The IASB issued the 2012-2014 cycle improvements to its standards and interpretations, primarily with a view to removing inconsistencies and clarifying wording. The improvements became effective for annual periods beginning on or after 1 January 2016. These improvements include:
IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations: Assets (or disposal groups) are generally disposed of either through sale or distribution to owners. The amendment clarifies that changing from one of these disposal methods to the other would not be considered a new plan of disposal, rather it is a continuation of the original plan. There is, therefore, no interruption of the application of the requirements in IFRS 5. This amendment is applied prospectively.
within the interim financial report (e.g., in the management commentary or risk report). The other information within the interim financial report must be available to users on the same terms as the interim financial statements and at the same time. This amendment is applied retrospectively.
These amendments do not have any impact on the Group.
Standards and interpretations issued but not yet effective during the reporting period are listed below:
1 Not yet endorsed by the EU as at 14 December 2016.
2 IFRS 15 including amendments to IFRS 15: Effective date of IFRS 15 has been endorsed by the EU. The Clarifications to IFRS 15 have not yet been endorsed by the EU as at 14 December 2016.
Amendments to IFRS 2 Share-based Payment - Classification and Measurement of Share-based Payment Transactions1
The amendments address three main areas:
On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. The amendments are effective for annual periods beginning on or after 1 January 2018, with early application permitted. The Group is assessing the potential effect of the amendments on its consolidated financial statements.
Amendments to IFRS 4 Insurance Contracts – Applying IFRS 9 Financial Instruments with IFRS 4
The amendments introduce two optional approaches for entities that issue insurance contracts within the scope of IFRS 4:
An entity shall apply the overlay approach retrospectively to eligible financial assets when it first applies IFRS 9. The amendments are effective for annual periods beginning on or after 1 January 2018, with early application permitted. These amendments are not relevant to the Group, because the Group does not issue any insurance contracts.
The final version of IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement (and all previous versions of IFRS 9). IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application permitted. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions.
The Group does not expect a significant impact on its balance sheet or equity on applying the classification and measurement requirements of IFRS 9. It expects to continue measuring at fair value all financial assets currently held at fair value.
The equity shares in non-listed companies are intended to be held for the foreseeable future. The Group expects to apply the option to present fair value changes in OCI, and, therefore, believes the application of IFRS 9 would not have a significant impact. If the Group were not to apply that option, the shares would be held at fair value through profit or loss, which would increase the volatility of recorded profit or loss.
Loans as well as trade receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest.
The Group believes that all existing hedge relationships that are currently designated in effective hedging relationships will still qualify for hedge accounting under IFRS 9. As IFRS 9 does not change the general principles of how an entity accounts for effective hedges, the Group does not expect a significant impact as a result of applying IFRS 9. The Group will assess possible changes related to the accounting for the time value of options, forward points or the currency basis spread in more detail in the future.
1 Not yet endorsed by the EU as at 14 December 2016.
IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.
The new revenue standard will supersede all current revenue recognition requirements under IFRS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 January 2018. Early adoption is permitted.
The Group plans to adopt the new standard on the required effective date using the modified retrospective method. During 2016, the Group performed a preliminary assessment of IFRS 15, which is subject to changes arising from a more detailed ongoing analysis. Furthermore, the Group is considering the clarifications issued by the IASB and will monitor any further developments.
The Group is in the business of providing equipment and services. The equipment and services are sold both on its own in separate identified contracts with customers and together as a bundled package of goods and/or services.
Contracts with customers in which equipment sale is generally expected to be the only performance obligation are not expected to have any impact on the Group's profit or loss. The Group expects the revenue recognition to occur over time due to the fact that the Group has an enforceable right to payment for performance completed to date.
In preparing to IFRS 15, the Group is considering the following:
A limited number of contracts with customers provide a volume rebates. Currently, the Group recognises revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of volume rebates. If revenue cannot be reliably measured, the Group defers revenue recognition until the uncertainty is resolved. Such provisions give rise to variable consideration under IFRS 15, and will be required to be estimated at contract inception.
IFRS 15 requires the estimated variable consideration to be constrained to prevent over-recognition of revenue. The Group continues to assess individual contracts to determine the estimated variable consideration and related constraint.
The Group provides warranties for general repairs in its contracts with customers. As such, the Group determines that such warranties are assurance-type warranties which will continue to be accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets consistent with its current practice.
The Group provides operation and maintenance services. These services are sold either on their own in contracts with the customers or bundled together with the sale of equipment to a customer. Currently, the Group accounts for the equipment and service as separate deliverables of bundled sales and allocates consideration between these deliverables using the relative fair value approach. The Group recognises service revenue by reference to the stage of completion. Under IFRS 15, allocation will be made based on relative stand-alone selling prices which is actually already the case. The Group has preliminarily assessed that the services are satisfied over time given that the customer simultaneously receives and consumes the benefits provided by the Group. Consequently, the Group would continue to recognise revenue for these service contracts/service components of bundled contracts over time rather than at a point of time.
(c) Equipment received from customers
Non cash consideration are not applicable in the Group sales contracts.
(d) Presentation and disclosure requirements IFRS 15 provides presentation and disclosure requirements, which are more detailed than under current IFRS. The presentation requirements represent a significant change from current practice and significantly increase the volume of disclosures required in Group's financial statements. Many of the disclosure requirements in IFRS 15 are completely new. In 2016, the Group developed and started testing of appropriate systems, internal controls, policies and procedures necessary to collect and disclose the required information.
2 IFRS 15 including amendments to IFRS 15: Effective date of IFRS 15 has been endorsed by the EU. The Clarifications to IFRS 15 have not yet been endorsed by the EU as at 14 December 2016.
IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17 Leases. The standard includes two recognition exemptions for lessees – leases of 'low-value' assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to recognise separately the interest expense on the lease liability and the depreciation expense on the right-of-use asset.
Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-ofuse asset.
Lessor accounting under IFRS 16 is substantially unchanged from today's lessor accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases.
IFRS 16 also requires lessees and lessors to make more extensive disclosures than under IAS 17.
The new standard is effective for annual periods beginning on or after 1 January 2019. Early application is permitted, but not before an entity applies IFRS 15 Revenue from Contract with Customers. A lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard's transition provisions permit certain reliefs. In 2017, the Group plans to assess the potential effect of IFRS 16 on its consolidated financial statements.
Amendments to IAS 7 Statement of Cash Flows – Disclosure Initiative1
The amendments are part of the IASB's Disclosure Initiative and require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. On initial application of the amendment, entities are not required to provide comparative information for preceding periods. These amendments are effective for annual periods beginning on or after 1 January 2017, with early application permitted. Application of the amendments will result in additional disclosure provided by the Group.
Amendments to IAS 12 Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses1
The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.
Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.
These amendments are effective for annual periods beginning on or after 1 January 2017 with early application permitted. If an entity applies the amendments for an earlier period, it must disclose that fact. These amendments are not expected to have any impact on the Group.
1 Not yet endorsed by the EU as at 14 December 2016.
Amendments to IAS 40 Investment Property – Transfers of Investment Property1
The amendments clarify the requirements on transfers to, or from, investment property. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 January 2018. The amendments' transition provisions permit certain reliefs. The amendments will not have any impact on the Group.
IFRIC 22 addresses the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. The interpretation is effective 1 January 2018. The interpretation will not have any impact on the Group.
Improvements to IFRS 2014-2016 Cycle (issued December 2016) 1
The IASB issued the 2014-2016 cycle improvements to its standards and interpretations, primarily with a view to removing inconsistencies and clarifying wording. These improvements include:
IFRS 12 Disclosure of Interests in Other Entities: The amendments clarify that the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, apply to interests that are classified as held for sale or discontinued operations. The amendments are effective for annual periods beginning on or after 1 January 2017.
IAS 28 Investments in Associates and Joint Ventures: The amendments clarify that the measurement election, ie. measuring investees at fair value through profit or loss, is available on an investment-byinvestment basis. Additionally, the amendment clarify that the choice, for an entity that is not an investment entity, to retain the fair value measurements used by that investment entity associate or joint venture when applying the equity method is also available on an investment-by-investment basis. The amendments are effective for annual periods beginning on or after 1 January 2018.
1Not yet endorsed by the EU as at 14 December 2016.
These amendments are not expected to have any impact on the Group.
The parent and all of its controlled subsidiaries are included in the consolidation.
Assets and liabilities, rights and commitments, and income and charges of the parent and its controlled subsidiaries are consolidated in full.
The Group controls an investee, if and only if, the Group has: power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); exposure or rights to variable returns from its involvement with the investee; and the ability to use its power over investee to affect its returns.
It is presumed to exist when the IBA Group holds more than 50% of the entity's voting rights. This presumption may be rebutted if there is clear evidence to the contrary. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls an entity.
Consolidation of a subsidiary takes place from the date of acquisition, which is the date on which control of the net assets and operations of the acquiree are effectively transferred to the acquirer. From the date of acquisition, the parent (the acquirer) incorporates into the consolidated income statement the financial performance of the acquiree and recognizes in the statement of consolidated financial position the acquired assets and liabilities (at fair value), including any goodwill arising on the acquisition. Subsidiaries are deconsolidated from the date on which control ceases. The following treatments are applied on consolidation:
In the statement of consolidated financial position, non-controlling interests in the net assets of subsidiaries are identified and reported separately in the caption "Non- controlling interests";
The portion of the profit or loss of the fully consolidated subsidiaries attributable to shares held by entities outside the Group is presented in the consolidated income statement in the caption "Profit/(loss) attributable to non-controlling interests".
Consolidated financial statements are prepared applying uniform accounting policies to like transactions and other events in similar circumstances.
An associate is an entity in which the investor has significant influence, but which is neither a subsidiary nor a joint venture (see next subsection) of the investor. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control over those policies. It is presumed to exist when the investor holds at least 20% of the investee's voting power but not to exist when less than 20% is held. This presumption may be rebutted if there is clear evidence to the contrary.
All associates are accounted for using the equity method: participating interests are presented separately in the closing date statement of consolidated financial position (in the caption "Investments accounted for using the equity method") at an amount proportionate to the associate's equity (as restated under IFRS), including the result for the year. Dividends received from an investee reduce the carrying amount of the investment.
The portion of the result of associates attributable to the Group is presented separately in the consolidated income statement in the caption "Share of profit (loss) of companies consolidated using the equity method".
Profits and losses resulting from transactions between an investor (or its consolidated subsidiaries) and associates are eliminated in proportion to the investor's interest in the associate.
As with associates, the equity method is used for the Group's joint arrangements that are classified as joint ventures.
Business combinations are the bringing together of separate entities or businesses into one reporting entity. A business is a set of activities and assets applied and managed together in order to provide a return or any other economic benefit to its investors. In all business combinations, one entity (the acquirer) obtains control that is not transitory of one or more other entities or businesses (the acquiree).
All business combinations (acquisitions of businesses) arising after January 1, 2004 are accounted for using the purchase method. The acquirer measures the cost of the business combination at the acquisition date (the date on which the acquirer obtains control over the net assets of the acquiree) and compares it with the fair value of the acquiree's identifiable net assets, liabilities, and contingent liabilities. The difference between the two represents a goodwill.
For all business combinations arising before January 1, 2004, no retrospective restatement to fair value has been made.
Similar rules have been applied to investments accounted for under the equity method, except that any goodwill arising on such investment is included in the carrying amount of the investment.
Negative goodwill arising on such investments is included in the determination of the entity's share of the investee's profit or losses in the period in which the investment is acquired.
Goodwill is not amortized but instead is tested for impairment annually (or more frequently if circumstances so require).
Negative goodwill is recognized as profit.
The excess of the acquisition cost of non- controlling interests over the balance sheet entry for these noncontrolling interests is deducted from equity ("economic unit model").
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 date of the transaction (historical exchange rate) or at an average rate for the month.
The principal exchange rates used for conversion to EUR are as follows:
| Closing rate on December 31, 2015 |
Average annual rate 2015 |
Closing rate on December 31, 2016 |
Average annual rate 2016 |
|
|---|---|---|---|---|
| USD | 1.0887 | 1.1105 | 1.0541 | 1.1068 |
| SEK | 9.1895 | 9.3512 | 9.5524 | 9.4613 |
| RUB | 80.6736 | 67.8946 | 64.3000 | 74.1017 |
| CNY | 7.0608 | 6.9026 | 7.3202 | 7.3493 |
| INR | 72.0215 | 71.0845 | 71.5935 | 74.2467 |
| JPY | 131.0700 | 134.3683 | 123.4000 | 120.2978 |
| CAD | 1.5116 | 1.4181 | 1.4188 | 1.4662 |
| GBP | 0.7340 | 0.7264 | 0.8562 | 0.8188 |
| ARS (1) | N/A | N/A | 16.7134 | 16.6779 |
| THB (2) | N/A | N/A | 37.7260 | 37.8500 |
(1) Average rate calculated on the basis of 6 months of activity
(2) Average rate calculated on the basis of 2 months of activity
Recognition as an intangible fixed asset is required when
Intangible assets are carried at acquisition cost less any accumulated amortization and any accumulated impairment loss.
Cost includes the fair value of the consideration given to acquire the asset and any costs directly attributable to the transaction, such as relevant professional fees or non-refundable taxes.
Indirect costs as well as general overheads are not included. Expenditure previously recognized as expense is not included in the cost of the asset.
Costs arising from the research phase of an internal project are expensed as incurred.
Costs arising from the development phase of an internal project (product development project or IT project) are recognized as an asset when IBA can demonstrate the following: technical feasibility, intention to complete development, how the intangible asset will generate probable future economic benefits (e.g., the existence of a market for the output of the intangible asset or for the intangible asset itself), availability of resources to complete development, and ability to measure the attributable expenditure reliably.
Maintenance costs, as well as costs for minor upgrades intended to maintain (rather than increase) the level of performance of the asset, are expensed as incurred.
The above recognition criteria are fairly stringent and are applied prudently.
The cost of the intangible assets is allocated on a systematic basis over the useful life of the asset using the straight-line method.
The applicable useful lives are as follows:
| INTANGIBLE FIXED ASSETS | Useful life |
|---|---|
| Product development costs | 3 years, except if a longer useful life is justified (however not exceeding 5 years) |
| IT development costs for the primary software programs (e.q. ERP) | 5 years, except if a longer useful life is justified |
| Other software | 3 years |
| Concessions, patents, licenses, know-how, trademarks, and other similar rights |
3 years, except if a longer useful life is justified |
Amortization commences only when the asset is available for use in order to achieve proper matching of cost and revenue.
The Group has no intangible fixed assets with indefinite useful life relating to its continuing operations.
Tangible fixed assets are carried at acquisition cost less any accumulated depreciation and any accumulated impairment loss.
Cost includes the fair value of the consideration given to acquire the asset (net of discounts and rebates) and any directly attributable cost of bringing the asset to working condition for its intended use (inclusive of import duties and taxes).Directly attributable costs are the cost of site preparation, delivery costs, installation costs, relevant professional fees, and the estimated cost of
dismantling and removing the asset and restoring the site (to the extent that such a cost is recognized as a provision).
Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item is separately depreciated over its useful life using the straight-line method. The depreciable amount is the acquisition cost, except for vehicles. For vehicles, it is the acquisition cost less the residual value of the asset at the end of its useful life.
Maintenance or repair costs whose objective is to maintain rather than increase the level of performance of the asset are expensed as incurred.
The applicable useful lives are as follows:
| TANGIBLE FIXED ASSETS | Useful life |
|---|---|
| Land | Not depreciated |
| Office buildings | 33 years |
| Industrial buildings | 33 years |
| Cyclotrons and vaults | 15 years, except in specific rare circumstances where a different useful life is justified |
| Laboratory equipment | 5 years |
| Other technical equipment | 5 to 10 years |
| Computer hardware | 3 to 5 years (5 years for mainframes) |
| Furniture and fittings | 5 to 10 years |
| Vehicles | 2 to 5 years |
A finance lease, which transfers substantially all the risks and rewards incident to ownership, is recognized as an asset and a liability at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments (= sum of capital and interest portions included in the lease payments). Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The depreciation policy for leased assets is consistent with that for similar assets owned.
An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount, which is the higher of the following two amounts: fair value less costs of disposal (the money that IBA can recover through sale) or value in use (the money that IBA can recover if it continues to use the asset).
When possible, impairment tests have been performed on individual assets. When, however, it is determined that assets do not generate independent cash flows, the test is performed at the level of the cash-generating unit (CGU) to which the asset belongs (CGU = the smallest identifiable group of assets generating inflows that are largely independent from the cash flows from other CGUs).
Goodwill arising on a business combination is allocated among the Group's CGUs that are expected to benefit from synergies as a result of the business combination. This allocation is based on Management's assessment of the synergies gained and is not dependent on the location of the acquired assets.
Since it is not amortized, goodwill is tested for impairment annually, along with the related CGU (or more frequently depending on circumstances), even if no indication of impairment exists. Other intangible and tangible fixed assets/CGUs are tested only if there is an indication that the asset is impaired.
Any impairment loss is first charged against goodwill. Any impairment loss exceeding the book value of goodwill is then charged against the other CGUs' fixed assets only if the recoverable amount is below their net book value. Reversals of impairment losses (other than on goodwill) are recorded if justified.
Inventories are measured at the lower of cost and net realizable value at the balance sheet date.
The cost of inventories comprises all costs incurred in bringing inventories to their present location and condition, including indirect production costs. Administrative overheads that do not contribute to bringing inventories to their present location and condition, selling costs, storage costs, and abnormal amounts of wasted materials are not included in the cost of inventories.
The standard cost method is used. The standard cost of an item of inventory at period-end is adjusted to actual cost. The allocation of fixed production overheads to the production cost of inventories is based on the normal capacity of the production facilities.
The cost of inventories that are ordinarily interchangeable is allocated by using the weighted average cost formula. The same cost formula is used for all inventories that have a similar nature and use to the entity.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale (e.g. sales commissions).
IBA books a write-down when the net realizable value at the balance sheet date is lower than the cost.
IBA applies the following policy for write-down on slow-moving items:
However, inventory is valued individually at year-end. Exceptions to the above general policy for write-down on slow moving items are made when justified by the individual valuation.
Revenue arising from the sale of goods is recognized when an entity has transferred the significant risks and rewards of ownership and collectability and recovery of the related receivables are reasonably assured.
The transaction is not a sale and revenue is not recognized where
Revenue is normally recognized when the buyer accepts delivery, and installation and inspection are complete. However, revenue is recognized immediately upon the buyer's acceptance of delivery when installation is simple in nature.
Revenue from the rendering of services is recognized by reference to the stage of completion of the transaction at the balance sheet date using rules similar to those for construction contracts (see next section); in other words, revenue is recognized as the related costs are incurred. Unless it is clear that costs are not incurred on a straight-line basis, revenues are spread evenly over the period of the services.
The recognition criteria are applied to the separately identifiable components of a single transaction when it is necessary to reflect the substance of the transaction.
Interest income is recognized using the effective yield method. Royalties are recognized on an accrual basis in accordance with the substance of the relevant agreement. Dividends relating to year N are recognized when the shareholder's right to receive payment is established (i.e. in year N+1).
Contract costs comprise:
When the outcome of a construction contract (i.e. estimation of the final margin) can be reliably estimated, contracts in progress are measured at production cost increased, according to the stage of completion of the contract, by the difference between the contract price and production cost ("percentage of completion" method).
The stage of completion is determined by comparing actual costs incurred to date with estimated costs to completion (costs that do not reflect work performed, such as commissions and royalties are excluded for this calculation). The percentage of completion is applied on a cumulative basis.
When the outcome of the contract cannot be estimated reliably, revenue is recognized only to the extent of costs incurred that it is probable will be recovered; contract costs are recognized as an expense as incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is immediately expensed to income statement, and a loss- at- completion provision is recorded.
The Group presents as an asset the net amount due from customers on contract work for all contracts in progress for which costs incurred plus recognized profits (less recognized losses) exceed progress billings. Progress billings not yet paid by customers and retention are included in trade receivables.
The IBA Group presents as a liability the net amount due to customers on contract work for all contracts in progress for which progress billings exceed costs incurred plus recognized profits (less recognized losses).
When financial guarantees must be given to third parties in connection with a contract and these guarantees involve a financial risk for IBA, a financial liability is recognized.
Receivables are recognized initially at fair value and subsequently measured at amortized cost, i.e., at the net present value of the receivable amount.
Unless the discounting impact is significant, receivables are measured at nominal value. Receivables are written down when receipt of all or part is uncertain or doubtful.
In general, IBA applies the following rule to writedowns of bad or doubtful debts:
However, the recoverability of receivables is assessed on a case-by-case basis, and exceptions to the above general rule are made when justified.
The Group classifies its financial assets in the following categories: loans and receivables, availablefor-sale financial assets, and financial assets at fair value through profit or loss.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not listed on an active market and are not held for trading.
Gains and losses on loans and receivables are recorded when receivables have been derecognized. Losses are recognized as soon as loans and receivables should be impaired.
Term deposits with maturities exceeding 3 months are classified as loans and receivables under IAS 39.
Investments in interest bearing securities, as well as investments in shares (other than shares in subsidiaries, joint ventures and associates) are accounted for as available-for-sale financial assets. They are recorded at fair value, with gains and losses recognized in equity, until they are impaired or sold, at which time the gains or losses accumulated in equity are reclassified to income.
For financial assets that are classified as available for sale, a significant or prolonged decline in the fair value of the investment below its cost is objective evidence of impairment. For restricted assets, a significant, prolonged decline is defined as a loss in value of more than 25% lasting over a continuous 6-month period. Impairment losses on these instruments are charged to income statement.
Increases in their fair value after impairment are credited directly to equity.
When there are indicators of impairment, all financial assets are subject to an impairment test. The indicators should provide objective evidence of impairment as a result of a past event that occurred subsequent to the initial recognition of the asset.
Expected losses as a result of future events are not recognized, no matter how likely.
Cash balances are recorded at their nominal value. Cash equivalents are short-term, highly liquid investments that can be used for any purpose and have a maturity date not exceeding three months from acquisition date. For the purpose of the statement of cash flow, Cash and cash equivalents include bank overdrafts.
If liquid funds are held in a special purpose account in the form of highly liquid investments that are renewed at maturity until needed for the special purpose, these cash equivalents are deemed restricted and are classified as other long-term receivables.
Deferred charges are the prorated amount of charges incurred in the current or prior financial periods but which are related to one or more subsequent periods. Accrued income is the prorated amount of income earned in the current or prior periods which will be received only in subsequent periods.
Ordinary shares are classified in the caption "Capital stock." Treasury shares are deducted from equity. Treasury share movements do not affect the income statement.
Capital grants are recorded as deferred income. Grants are recognized as income at the same rate as the rate of depreciation for related fixed assets. When grants relate to a non-capitalized cost, they are systematically recognized as income for the period during which the cost they are supposed to offset has occurred.
A provision is recognized only when:
When the impact is likely to be material (for long-term provisions), the amount recognized as a provision is estimated on a net present value basis (discount factor). The increase in provision due to the passage of time is recognized as a financial expense.
A present obligation arises from an obligating event and may take the form of either a legal obligation or a constructive obligation (A constructive obligation exists when IBA has an established pattern of past practice that indicates to other parties that it will accept certain responsibilities and as a result has created a valid expectation on the part of those other parties that it will discharge those responsibilities). An obligating event leaves IBA no realistic alternative to settling the obligation, independently of its future actions.
Provisions for site repair, restoration, and decommissioning costs are recorded as appropriate in application of the above.
If IBA has an onerous contract (that is, if the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it), the present obligation under the contract is recognized as a provision.
A provision for restructuring is recorded only if IBA can demonstrate that the Company is under an obligation to restructure at the balance sheet date. Such obligation must be demonstrated by (a) preparing a detailed formal plan identifying the main features of the restructuring and (b) raising a valid expectation to those affected that it will carry out the restructuring by starting to implement the plan or by announcing its main features to those affected.
The Group operates a contribution based plan funded through payments to an insurance company. The employer guarantees a minimum return on employer contributions resulting in a financial risk to be borne by the Group.
Up to December 31, 2015, the Group had opted to account for these plans using the intrinsic value method.
Following the evolution with respect of minimum guaranteed return, the plans are to be considered as defined benefit plans instead of contribution plans following IAS 19. As a result, the Group has changed its valuation rule and has adopted the projected unit credit method. This method considers that each service period gives rise to an additional benefit entitlement unit. According to this method, the plans' cost is recognized as an expense in the income statement so as to spread this cost evenly throughout the employee's career, and this based on the recommendations of actuaries who carry out complete assessments on these retirement plans each year.
Actuarial differences include, for assets and liabilities, differences between previous actuarial assumptions and what actually happened, and the impact of changes of actuarial assumptions on the plans' liabilities. Actuarial differences are fully recorded in other items of the comprehensive income statement during their period of occurrence.
Share-based payments are transactions to be paid with shares, stock options, or other equity instruments (granted to employees or other parties) and transactions paid in cash or other assets when the amount payable is based on the price of the Group's shares.
All transactions involving share-based payments are recognized as expenses.
Equity-settled share-based payment transactions are measured at the fair value of the goods or services received at the date on which the Group recognizes the goods and services. If the fair value of goods or services cannot be determined, the Group uses the fair value of the equity instruments granted. Equitysettled share-based payments are not re-measured.
The comprehensive method and the liability method are used. Deferred taxes are recorded on the temporary differences arising between the carrying amount of the balance sheet items and their tax base, using the rate of tax expected to apply when the asset is recovered or the liability is settled.
There are three exceptions to the general principle that deferred taxes are recognized on all temporary differences. Deferred taxes are not recognized for:
A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. The same principle applies to recognition of deferred tax assets for unused tax losses carried forward. This assessment is subject to the principle of prudence.
4 years are taken into account in order to determine the period for recovery of the taxes.
Deferred taxes are calculated for each fiscal entity in the Group. IBA is able to offset deferred tax assets and liabilities only if the deferred balances relate to income taxes levied by the same taxation authority.
Payables after and within one year are measured at amortized cost, i.e., at the net present value of the payable amount.
Unless the impact of discounting is material, the nominal value is taken.
Accrued charges are the prorated amount of expenses which will be paid in a subsequent financial period but relate to a prior period. Deferred income is the prorated amount of income received in the current or prior periods but related to a subsequent period.
Foreign currency transactions are converted into the functional currency of the Group entity party to the transaction using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the conversion at the period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.
Exchange differences arising from the consolidation of currency items that constitute part of the reporting entity's net investment in a foreign entity (i.e. when settlement is neither planned nor likely to occur in the foreseeable future) are recorded in equity if the following two conditions are met:
Derivative instruments are accounted for at fair value on the date the contracts are entered into.
Changes in the fair value of derivative instruments are accounted for in the income statement unless they qualify as cash flow hedges under IAS 39.
The Group designates certain derivative transactions as hedges of the variability of the fair value of recognized assets or liabilities (fair value hedges); as unrecognized firm commitments; or as hedges of the cash flow variability arising from a specific risk associated with a recognized asset or liability or with a highly probable forecast transaction (cash flow hedges).
The Group documents at the inception of the transaction the relationship between the hedging instruments and the hedged item, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in equity. Gain or loss relating to the ineffective portion of the hedge is recognized immediately in the income statement.
Amounts accumulated in equity are reclassified to the income statement in the periods when the hedged item affects the income statement (e.g., when the forecast sale that is hedged takes place).
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and reclassified to the income statement when the forecast transaction is ultimately recognized in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately moved to the income statement.
Certain derivative instruments do not qualify for hedge accounting. Such derivatives are recognized at fair value on the statement of financial position, with changes in fair value recognized in the income statement.
These instruments are considered economic hedges inasmuch as they are not used to speculate on positions.
The Group does not hold instruments for speculative purposes.
A business segment is a group of assets and operations involved in the supply of products or the providing of services and exposed to risks and returns other than those in other business segments.
A geographic segment is engaged in the supply of products or the providing of services within a specific economic environment, exposed to risks and returns other than those in segments operating in other economic environments.
The Group's activities expose it to a variety of financial risks, of which the largest is market risk (including currency risk). Other financial risks include credit risk, liquidity risk, interest rate risk, and commodity risk.
The Group's overall financial risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial performance. The Group uses derivative financial instruments to hedge certain risk exposures.
Financial risk management is carried out by a central treasury department (Group Treasury) under policies approved by the Audit Committee of the Board of Directors. These policies provide written principles for overall financial risk management, as well as written policies covering specific areas, such as foreign exchange risk, use of derivative financial instruments and non-derivative financial instruments, and investing excess liquidity. Group Treasury identifies, evaluates, and hedges financial risks in close cooperation with the Group's operating units.
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar, the Chinese Yuan, Czech krona, Polish zlotys, Russian ruble, British pound and the Swedish krona.
Foreign exchange risk arises from future and committed commercial transactions, from recognized financial assets and liabilities, and from net investments in foreign operations.
To manage foreign exchange risk arising from future and committed commercial transactions and from recognized assets and liabilities denominated in a currency different from the entity's functional currency, entities in the Group use forward exchange contracts, transacted with Group Treasury. Group Treasury is responsible for hedging the net position in each foreign currency by using forward exchange contracts entered into with banks when possible and appropriate.
For segment reporting purposes, each subsidiary designates contracts with Group Treasury as fair value hedges or cash flow hedges, as appropriate.
External foreign exchange contracts are designated at Group level as hedges of foreign exchange risk on specific assets, liabilities, or committed or future transactions on a gross basis.
The Group's general hedging policy is to hedge any confirmed sales contracts denominated in a foreign currency as well as expected net operational cash flows when they can be reasonably predicted. Appropriate documentation is prepared in accordance with IAS 39. The CFO approves and the CEO is informed of significant hedging transactions, with reporting to the Audit Committee four times a year.
Intercompany loans denominated in foreign currencies are entered into to finance certain subsidiaries and expose the Group to fluctuations in exchange rate.
The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group's foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies.
Dosimetry and Proton Therapy services are impacted by the fluctuation of the USD exchange rate against EUR. In 2016 a fluctuation of -3% of USD against EUR would have had a negative impact on the sales of Dosimetry segment by -1.16%. In 2016 a fluctuation of -3% of USD against EUR would have had a negative impact on the Proton Therapy Services sales segment by -2.17%.
The exposure of the Group to the fluctuation of Chinese Yuan, Czech Krona, Polish Zlotys, British pound and Russian ruble is not material for the Group.
The Group has some transactional currency exposure that arises from sales or purchases by an operating unit in currencies other than the unit's functional currency. The parent company of the Group operating in euros but making certain transactions purchase/sales among others expressed in US dollars, Chinese Yuan and Russian ruble.
Approximately 12% of the Group's sales (24% in 2015) are denominated in currencies other than the functional currency of the operating unit making the sale, while 94.4% of costs (92.4% in 2015) are denominated in the unit's functional currency. Where the Group considers that there are no natural hedging opportunities, forward exchange contracts or forward currency options are used to cover currency exposure.
The Group is exposed to the counterparty risk on commercial paper and investment funds held in companies accounted for using the equity method and in respect of which IBA was committed for 5 years to supporting the differences between the pledged assets and the provisions for decommissioning of Rose Holding SARL (cf. Note 3.B). The risk was mitigated by the rigorous selection of investment products with a high rating and high degree of liquidity.
This risk doesn't exist anymore since the disposal of IBA Molecular end of March 2016.
The Group has no significant exposure to credit risk. The Company policy for large contracts is to have appropriate letters of credit issued prior to delivery of the equipment.
The Company has also a general agreement with the Belgian national export credit insurance institution (ONDD) that provides systematic coverage of all large equipment transactions.
The table in section 2.2 presents the financial assets of the Group by valuation method (fair value and carrying amount). The carrying amount of these financial assets represents the maximum credit exposure of the Group.
The fair value of a financial instrument is the price at which a party would accept the rights and/or obligations of this financial instrument from another independent party.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount in outstanding credit facilities. Due to the dynamic nature of the underlying businesses, Group Treasury aims to maintain flexibility in funding by keeping credit lines available.
In 2012, IBA strengthened the availability of financing by obtaining a long-term credit facility of EUR 20 million from the S.R.I.W. Under the terms of this financing, the Group agrees to comply with specific covenants relating to IBA SA level of equity.
As at December 31, 2016, the Group had drawn up to EUR 20 million on this line of credit and made repayments for EUR 10 million (of which EUR 10 million in 2014).
In 2014 the Group's equity was strengthened through a new financing arrangement with the S.R.I.W. A ''reverse convertible bond'' was put in place allowing the Group to ask the conversion of this bond into ordinary shares at any time before December 31, 2015. As at December 31, 2015, the ''reverse convertible bond'' of S.R.I.W. has not been converted in capital, it has turned back into a subordinate loan that increased the amount of our used credit lines up with EUR 5 million.
In 2014, IBA strengthened the availability of financing by obtaining a long-term subordinated facility bond of EUR 9 million from the SFPI. This subordinated facility bond was due to expire the December 31, 2016, and the Group has decided to not apply to the S.F.P.I. to extend the availability of this subordinated facility bond.
In April 2016 IBA borrowed EUR 10 million from a Belgian bank in order to partially refinance the early repayment of E.I.B. bank borrowing. This loan has a 5 years repayment period and will be repaid through 20 equal quarterly instalments in principal. The first repayment in principal of EUR 0.5 million occurred at the end of July 2016. The last instalment will be in April 2021.
In February 2016 IBA issued a private 5 years bond for a total subscribed amount of EUR 5.75 million. The purpose is to partially refinance the E.I.B. early repayment. This loan will be repaid in one instalment in February 2021.
Some financial covenants apply.
As at December 31, 2016, the Group has at its disposal credit lines up to EUR 59.75 million of which 49.8% are used to date.
The table below summarizes the maturity profile of the Group's financial liabilities:
| DECEMBER 31, 2015 (EUR 000) |
due | < 1 year | 1-2 years | 2-5 years | > 5 years | Total |
|---|---|---|---|---|---|---|
| FINANCIAL LIABILITIES | ||||||
| Bank borrowings | 0 | 17 184 | 760 | 6 975 | 11 194 | 36 113 |
| Financial lease liabilities | 0 | 225 | 230 | 0 | 0 | 455 |
| Trade payables | 23 675 | 21 212 | 0 | 0 | 0 | 44 887 |
| Other ST and LT liabilities | 0 | 137 518 | 4 041 | 0 | 0 | 141 559 |
| TOTAL | 23 675 | 176 139 | 5 031 | 6 975 | 11 194 | 223 014 |
| DECEMBER 31, 2016 (EUR 000) |
due | < 1 year | 1-2 years | 2-5 years | > 5 years | Total |
| FINANCIAL LIABILITIES |
| TOTAL | 30 735 | 150 268 | 8 997 | 19 574 | 8 353 | 217 927 |
|---|---|---|---|---|---|---|
| Other ST and LT liabilities | 42 | 121 898 | 5 339 | 0 | 0 | 127 279 |
| Trade payables | 30 693 | 25 348 | 0 | 0 | 0 | 56 041 |
| Financial lease liabilities | 0 | 157 | 0 | 0 | 0 | 157 |
| Bank borrowings | 0 | 2 865 | 3 658 | 19 574 | 8 353 | 34 450 |
The table below summarizes the maturity profile of the Group's financial assets:
| TOTAL | 41 204 | 48 287 | 3 240 | 4 399 | 12 999 | 110 129 |
|---|---|---|---|---|---|---|
| Other ST and LT assets | 934 | 22 821 | 3 240 | 4 399 | 12 999 | 44 393 |
| Trade receivables | 40 270 | 25 466 | 0 | 0 | 0 | 65 736 |
| FINANCIAL ASSETS | ||||||
| DECEMBER 31, 2016 (EUR 000) |
Due | < 1 year | 1-2 years | 2-5 years | > 5 years | Total |
| TOTAL | 35 377 | 106 829 | 1 735 | 3 813 | 11 922 | 159 676 |
| Other ST and LT assets | 2 491 | 79 777 | 1 735 | 3 813 | 11 922 | 99 738 |
| Trade receivables | 32 886 | 27 052 | 0 | 0 | 0 | 59 938 |
| FINANCIAL ASSETS | ||||||
| DECEMBER 31, 2015 (EUR 000) |
Due | < 1 year | 1-2 years | 2-5 years | > 5 years | Total |
The Group exposure to the risk of changes in market interest rates relates primarily to the Group's longterm debt obligations with floating interest rates. When the Group deems that the fluctuation of interest rate could have a significant impact on its financial results, the Group will use interest rate swaps in order to limit this impact.
IBA does not apply hedge accounting to these transactions, and these instruments are therefore revalued through profit and loss.
At the end of 2015 and 2016, the Group has no interest rate swaps.
IBA's analysis of the impact of a 1% fluctuation in interest rates (sensitivity analysis) on the income statement of an average financial debt of EUR 29.5 million in 2016 (30.4 million in 2015 – impact of EUR - /+0.30 million) suggests that it will be EUR -/+0.30 million.
The assets and liabilities of the Group are valued as follows:
| December 31, 2015 | December 31, 2016 | ||||
|---|---|---|---|---|---|
| Net carrying | Net carrying | ||||
| EUR 000 | Category | value | Fair value | value | Fair value |
| FINANCIAL ASSETS Trade receivables |
Loans and receivables |
59 938 | 59 938 | 65 736 | 65 736 |
| Long-term receivables on contracts in progress | Loans and receivables |
882 | 882 | 837 | 837 |
| Other long-term receivables | Loans and receivables |
15 809 | 15 809 | 17 630 | 17 630 |
| Non-trade receivables and advance payments | Loans and receivables |
11 927 | 11 927 | 16 403 | 16 403 |
| Other short-term receivables | Loans and receivables |
69 919 | 69 919 | 6 006 | 6 006 |
| Other investments | Available for sale |
7 116 | 7 116 | 8 909 | 8 909 |
| Cash and cash equivalents | Loans and receivables |
81 715 | 81 715 | 74 564 | 74 564 |
| Hedging derivative products | Hedge accounting |
1 065 | 1 065 | 3 224 | 3 224 |
| Derivative products – other | FVPL2 | 136 | 136 | 293 | 293 |
| TOTAL | 248 507 | 248 507 | 193 602 | 193 602 | |
| FINANCIAL LIABILITIES | |||||
| Bank and other borrowings | FLAC | 31 250 | 31 250 | 29 750 | 29 750 |
| Financial lease liabilities | FLAC | 424 | 424 | 151 | 151 |
| Trade payables | FLAC | 44 887 | 44 887 | 56 041 | 56 041 |
| Hedging derivative products | Hedge accounting |
2 836 | 2 836 | 4 021 | 4 021 |
| Derivative products – other | FVPL2 | 153 | 153 | 408 | 408 |
| Other long-term liabilities | FLAC | 3 162 | 3 162 | 3 916 | 3 916 |
| Amounts due to customers for contracts in progress | FLAC | 104 620 | 104 620 | 85 516 | 85 516 |
| Social debts | FLAC | 11 930 | 11 930 | 14 737 | 14 737 |
| Other short-term liabilities | FLAC | 18 783 | 18 783 | 18 591 | 18 591 |
| Short-term tax liabilities | FLAC | 75 | 75 | 90 | 90 |
| TOTAL | 218 120 | 218 120 | 213 221 | 213 221 |
As at December 31, 2015 and 2016, 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 from third companies, depending on the evolution of its strategy. These interests are shown in the "available for sale" category.
FLAC: Financial liabilities measured at amortized cost.
FVPL1: Fair value through profit or loss (held for trading).
FVPL2: Fair value through profit or loss (derivative- based asset whose value was inseparable from the underlying notional value).
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 IAS 39 all derivatives are recognized at fair value in the balance sheet.
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.
| (EUR 000) | Level 1 | Level 2 | Level 3 | December 31, 2015 |
|---|---|---|---|---|
| - Forward foreign exchange contracts | 1 065 | 1 065 | ||
| - Foreign exchange rate swaps | 0 | 0 | ||
| Hedge-accounted financial assets | 1 065 | 1 065 | ||
| - Forward foreign exchange contracts | 44 | 44 | ||
| - Foreign exchange rate swaps | 92 | 92 | ||
| Financial assets at fair value through the income statement | 136 | 136 | ||
| - Forward foreign exchange contracts | 2 467 | 2 467 | ||
| - Foreign exchange rate swaps | 369 | 369 | ||
| Hedge-accounted financial liabilities | 2 836 | 2 836 | ||
| - Forward foreign exchange contracts | 98 | 98 | ||
| - Foreign exchange rate swaps | 55 | 55 | ||
| Financial liabilities at fair value through the income statement | 153 | 153 |
During this past financial year, there was no transfer between the various categories presented below:
| (EUR 000) | Level 1 | Level 2 | Level 3 | December 31, 2016 |
|---|---|---|---|---|
| - Forward foreign exchange contracts | 3 215 | 3 215 | ||
| - Foreign exchange rate swaps | 9 | 9 | ||
| Hedge-accounted financial assets | 3 224 | 3 224 | ||
| - Forward foreign exchange contracts | 94 | 94 | ||
| - Foreign exchange rate swaps | 199 | 199 | ||
| Financial assets at fair value through the income statement | 293 | 293 | ||
| - Forward foreign exchange contracts | 3 641 | 3 641 | ||
| - Foreign exchange rate swaps | 380 | 380 | ||
| Hedge-accounted financial liabilities | 4 021 | 4 021 | ||
| - Forward foreign exchange contracts | 326 | 326 | ||
| - Foreign exchange rate swaps | 82 | 82 | ||
| Financial liabilities at fair value through the income statement | 408 | 408 |
As at December 31, 2016, the Group held 50 forward exchange contracts (63 as at December 31, 2015) and 2 foreign exchange swaps (5 as at December 31, 2015) to cover future cash flow movements US dollars, British pounds and Swedish krona cash flows. These hedges are deemed highly effective.
These hedges generated a EUR 0.74 million loss in 2016 (loss of EUR 0.35 million in 2015). This loss is recognized in the other items of the comprehensive income statement.
| Hedge instrument maturities | |||||
|---|---|---|---|---|---|
| (EUR 000) | Equity | < 1 year | 1-2 years | > 2 years | |
| AS AT DECEMBER 31, 2015 | |||||
| - Foreign exchange hedge in | GBP | 1 055 | 283 | 258 | 514 |
| - Foreign exchange hedge in | USD | -3 939 | -3 071 | -821 | -47 |
| - Foreign exchange hedge in | SEK | -352 | -352 | 0 | 0 |
| -3 236 | -3 140 | -563 | 467 | ||
| AS AT DECEMBER 31, 2016 | |||||
| - Foreign exchange hedge in | GBP | 3 215 | 1 057 | 2 158 | 0 |
| - Foreign exchange hedge in | USD | -5 716 | -3 437 | -1 382 | -897 |
| -2 501 | -2 380 | 776 | -897 |
As at 31 December 2016, the Group holds 20 forward exchange contracts (12 on December 31, 2015), and 16 exchange rate swaps (17 as at December 31, 2015) to cover future cash flows of US dollars, Swedish krona, British pounds, Chinese yuan, Canadian dollars and Polish zlotys.
As they do not qualify for hedge accounting under the IFRS, the various hedge instruments discussed in this section are measured at fair value through the income statement.
The loss generated on these instruments included in the income statement amount to EUR 0.18 million at December 31, 2016 (loss of EUR 0.06 million at December 31, 2015).
The Group's aim is to optimize the capital structure in order to maximize its value for the shareholders while maintaining the financial flexibility required carrying out the strategy approved by the Board of Directors.
On June 30, 2014, the Group strengthened its equity with a capital increase from two leading regional and federal investment companies in Belgium for a total amount of EUR 6 million (EUR 5 million from S.R.I.W. and 1 million from S.F.P.I.) and with a ''reverse convertible bond'' subscribed by S.R.I.W. for EUR 5 million. EUR 10 million were used to repay outstanding bank loans.
December 31, 2015 was the latest date for converting the bond into equity. The Group has decided not to exercise its right to convert the ''reverse convertible bond'' into capital. As consequence, the ''reverse convertible bond'' has been reclassified from equity to bank and other borrowings.
On June 30, 2014, the Group strengthened its equity with a capital increase from two leading regional and federal investment companies in Belgium for a total amount of EUR 6 million (EUR 5 million from S.R.I.W. and 1 million from S.F.P.I.) and with a new subordinated facility bond of EUR 9 million granted by S.F.P.I (undrawn as at December 31, 2016). This subordinated facility bond expired the December 31, 2016, and the Group has decided not . to extend the availability of this subordinated facility bond.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
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 balance sheet 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. The period used for estimates of the future taxable profits taken into account for the recognition of deferred tax assets is 4 years. The assumptions taken in consideration in the financial plans are as follow: revenue guidance maintained at around 15% to 20% in 2017 and double digit thereafter and operating margin guidance of approximatively 11% to 12% in 2017 increasing to 13% – 15% in 2018 and stabilizing at 15% by 2020.
As at December 31, 2016, the Group had accumulated net operating losses of EUR 92.3 million usable to offset future profits taxable mainly in Belgium and in Russia and temporary differences amounting to EUR 6.3 million mainly in the United States and in China. The Company recognized deferred tax assets of EUR 20.4 million with the view to use the tax losses carried forward and EUR 2.4 million as temporary differences.
Production of pharmaceutical tracers (segment of the pharmaceuticals activity) generates radiation and results in contamination of production sites facilities. This could require the Group to incur restoration costs to meet regulations in different countries and fulfill any legal or implied obligation.
Analyzes and estimates are made by the Group with the assistance of its legal counsel to determine the likelihood, timing and amount of costs, together with a probable required outflow of resources.
Provisions have been made for unavoidable costs in connection with dismantling the sites where radiopharmaceuticals are produced. These provisions are measured at the net present value of the best estimate of the cost required.
The provisions were primarily for obligations in connection with a radiopharmaceutical production facility belonging to the mother company IBA SA in Fleurus.
In 2015, the Fleurus site was sold for EUR 1 including the transfer to the acquirer of the site decommissioning obligations. As a result a reversal of the provision of EUR 5.6 million has been recorded in 2015 and a provision of EUR 0.5 million is still included in the financials of IBA to cover the contractual obligations of IBA to dispose of radioactive waste according to this sales agreement.
Contracts in progress are valued at their cost of production, increased by income accrued as determined by the stage of completion of the contract activity at the balance sheet date, to the extent that it is probable that the economic benefits associated with the contract will flow to the Group.
This probability is based on judgment. If certain judgmental criteria differ from those used for previously recognized revenues, the Group's income statement is affected.
When appropriate, the Company revises its estimated margin at completion to take into account the assessment of any residual risk arising from this contract over several years. When the final outcome of these uncertainties differs from initial estimations, the Group's income statement is affected.
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.
See Note 8.1 for additional information.
The growth rates used for the impairment tests vary between 0% and 4.5% and the discount rates vary between 6% and 11%.
At December 31, 2016, the sensitivity tests carried out by the Group based on the fluctuation of the growth and discount rates by 100 basis points (towards the top and bottom) have not revealed any significant impairment for continuing operations.
A deferred remuneration element depended on whether a certain sale price will be reached by the investment fund on exit. Until the disposal date of IBA Molecular by IBA and SK Capital Partners, the market value used to determine the value of the by- product associated to it has been based on a model of discounted future cash flows and of multiples combined with probabilities of an exit that varies depending on the year.
In the framework of the disposal of IBA Molecular and based on an agreement signed by both parties, this derivative has been revaluated at EUR 5.83 million and has been repaid in the first quarter of 2016.
As at December 31, 2015, this derivative had been recognized in the balance sheet under the ''other receivables'' heading.
In 2014, the Company has put in place a new longterm incentive plan, aimed at supporting its multi-year profitability targets, the alignment of plan participants with shareholder interests and longer-term shareholder value creation, as well as creating a suitable retention effect. The plan is two-tiered, directly or indirectly combining a cash-based incentive with a grant of warrants.
The cash-based incentive has been implemented in 2014 and is linked to actual cumulative profit before tax over the period 2014 – 2017 compared to a predefined target aligned to the Group strategic plan and the guidance provided to the market in this respect. Vesting occurs in full at the end of 2017, subject to each participant's continued service up to that date and subject to a threshold backlog requirement being met on the same date. The target payout varies between 30% and 100% of annual fixed remuneration directly or indirectly received, except for the Chief Executive Officer, for whom it is 200%. The maximum payout upon superior performance is set at 200% of the target payout. Poor performance results in a zero payout. Satisfactory individual performance, for each calendar year included in the performance period, operates as an additional threshold under the plan, reducing the actual payout by 25% for each year that the individual performance is below expectations. Individual overachievement does not result in an increased payout under the plan. No new cash-based incentive has been implemented in 2015 and 2016.
As at December 2016, a cumulated provision of EUR 4.28 million has been booked by the Group for the long term incentive plan. The provision is calculated on a prorate basis of the achieved objectives versus targeted objectives (EUR 2.4 million in 2015).
The company is using the Black & Scholes model to measure the options value. Terms and conditions of the Group stock option plans are described in note 17.2.
In 2015, the Company initiated an analysis on the Group exposure in countries other than Belgium to be potentially obliged to pay certain local taxes whereas the payment of those taxes has been transferred to the Group's customers. Exposure identified as of December 31, 2015, has been reduced as a result of further investigation performed in 2016. Based on the data available, it is still not possible to make a reliable estimate of the remaining exposure and therefore no provision has been accrued for in the Group financial statements.
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:
The operating segments are parts of the Company's business. Distinct financial information is available for these segments and is regularly checked by the Management.
The presentation format of IBA's operational segments is represented by activities in the primary dimension, as the Company's risks of the Company and the productivity rates related to the activities are mainly affected by the fact that IBA operates activities which have different fundamental risk profiles. Consequently, the organization of the Company's Management and its internal reporting system to the Board of Directors have been implemented. A business segment is a separate component of a company which provides products or services in a specific field of activity which is subject to risks and returns different from those of other activities. In accordance with IFRS 8 Operating segments, the business segments on which segment information is based are (1) Proton therapy and others accelerators and (2) Dosimetry.
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 nonallocated assets mainly include deferred tax assets and some assets of companies that have a crosssegment role. The non-allocated liabilities mainly include those that are relevant to companies having a cross-segment role.
The segment investment expenses include the total cost of investments incurred during the period of acquisition of tangible and intangible assets investments, except goodwill.
The following table provides details of the income statement for each segment. Any intersegment sales are contracted at arm's length.
| Proton Therapy and | Dosimetry | Group | |
|---|---|---|---|
| Other Accelerators (EUR 000) | (EUR 000) | (EUR 000) | |
| YEAR ENDED DECEMBER 31, 2015 | |||
| Sales | 147 746 | 47 345 | 195 091 |
| Services | 68 515 | 6 751 | 75 266 |
| External Sales | 216 261 | 54 096 | 270 357 |
| REBIT | 21 956 | 7 597 | 29 553 |
| Other operating (expenses)/Income | -3 120 | -715 | -3 835 |
| Segment result | 18 836 | 6 882 | 25 718 |
| Unallocated expenses (1) | 36 369 | ||
| Financial (expenses)/income (2) | 3 227 | ||
| Share of profit/(loss) of companies consolidated using the equity method |
-122 | ||
| Result before taxes | 65 192 | ||
| Tax (expenses)/income (2) | -3 930 | ||
| RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS |
61 262 | ||
| Profit/(loss) for the period from discontinued operations | -73 | ||
| Profit/(loss) for the period | 61 189 |
| Proton Therapy and Other Accelerators (EUR 000) |
Dosimetry (EUR 000) |
Group (EUR 000) |
|
|---|---|---|---|
| Non-current assets | 63 258 | 6 326 | 69 584 |
| Current assets | 304 303 | 19 577 | 323 880 |
| Segment assets | 367 561 | 25 903 | 393 464 |
| Investments accounted for using the equity method | 1 888 | ||
| TOTAL ASSETS | 367 561 | 25 903 | 395 352 |
| Non-current liabilities | 24 617 | 1 237 | 25 854 |
| Current liabilities | 195 894 | 9 972 | 205 866 |
| Segment liabilities | 220 511 | 11 209 | 231 720 |
| TOTAL LIABILITIES | 220 511 | 11 209 | 231 720 |
| Other segment information | |||
| Capital expenditure | 3 844 | 461 | |
| Depreciation and impairment of property, plant and equipment |
1 457 | 416 | |
| Depreciation of intangible assets and goodwill | 2 045 | 181 | |
| Salary expenses | 81 297 | 15 868 | |
| Non-cash expenses/(income) | 986 | 1 038 | |
| Headcount at year-end | 962 | 213 |
(1) Unallocated expenses mainly consist of expenses for stock option plans, stock plans.
(2) Cash and taxes are handled at Group level and are therefore presented under unallocated.
Balance sheet intercompany position between segments is excluded from the assets and liabilities of the segment.
| Proton Therapy and Other Accelerators (EUR 000) |
Dosimetry (EUR 000) |
Group (EUR 000) |
|
|---|---|---|---|
| YEAR ENDED DECEMBER 31, 2016 | |||
| Sales | 200 598 | 41 415 | 242 013 |
| Services | 80 068 | 6 693 | 86 761 |
| External Sales | 280 666 | 48 108 | 328 774 |
| REBIT | 34 114 | 3 022 | 37 136 |
| Other operating (expenses)/Income | -6 547 | -657 | -7 204 |
| Segment result | 27 567 | 2 365 | 29 932 |
| Unallocated (expenses)/income (1) | -725 | ||
| Financial (expenses)/income (2) | -1 453 | ||
| Share of profit/(loss) of companies consolidated using the equity method |
145 | ||
| Result before taxes | 27 899 | ||
| Tax (expenses)/income (2) | -3 359 | ||
| RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS | 24 540 | ||
| Profit/(loss) for the period from discontinued operations | -100 | ||
| Profit/(loss) for the period | 24 440 |
| Proton Therapy and Other Accelerators (EUR 000) |
Dosimetry (EUR 000) |
Group (EUR 000) |
|
|---|---|---|---|
| Non-current assets | 75 726 | 6 732 | 82 458 |
| Current assets | 275 751 | 21 006 | 296 757 |
| Segment assets | 351 477 | 27 738 | 379 215 |
| Investments accounted for using the equity method | 1 402 | ||
| TOTAL ASSETS | 351 477 | 27 738 | 380 617 |
| Non-current liabilities | 42 466 | 1 317 | 43 783 |
| Current liabilities | 178 101 | 8 342 | 186 443 |
| Segment liabilities | 220 567 | 9 659 | 230 226 |
| TOTAL LIABILITIES | 220 567 | 9 659 | 230 226 |
| Other segment information | |||
| Capital expenditure | 11 901 | 1 064 | |
| Depreciation and impairment of property, plant and equipment | 2 021 | 430 | |
| Depreciation of intangible assets and goodwill | 2 039 | 180 | |
| Salary expenses | 101 943 | 15 578 | |
| Non-cash expenses/(income) | 2 598 | 542 | |
| Headcount at year-end | 1 214 | 218 |
(1) Unallocated expenses and income mainly consist of expenses for stock option plans, stock plans, the gain realized on the disposal of IBA Molecular and expenses related to the radiopharmaceutical activities sold.
(2) Cash and taxes are handled at Group level and are therefore presented under unallocated (expense)/income.
The Group's business segments operate in three main geographical areas, Belgium, the United States and the rest of the world.
These geographical segments have been determined on the basis of the economic and political context, the degree of proximity of the business activities, and the specific risks associated with the business activities in a given geographical area.
The sales figures presented below are based on customer location, whereas segment balance sheet items are based on asset location.
| Operations held for | |||||
|---|---|---|---|---|---|
| Belgium | USA | ROW | sale | Group | |
| (EUR 000) | (EUR 000) | (EUR 000) | (EUR 000) | (EUR 000) | |
| YEAR ENDED DECEMBER 31, 2015 | |||||
| Net sales and services* | 2 185 | 105 815 | 162 357 | 0 | 270 357 |
| Non-current assets | 55 675 | 7 895 | 6 014 | 0 | 69 584 |
| Current assets | 278 958 | 15 398 | 29 524 | 0 | 328 880 |
| Segment assets | 334 633 | 23 293 | 35 538 | 0 | 393 464 |
| Investments accounted for using the equity method |
0 | 0 | 1 888 | 0 | 1 888 |
| Unallocated assets | 0 | ||||
| TOTAL ASSETS | 395 352 | ||||
| Capital expenditure (incl. fixed assets from acquisitions in 2015) |
3 629 | 222 | 454 | 0 |
| Belgium (EUR 000) |
USA (EUR 000) |
ROW (EUR 000) |
Operations held for sale (EUR 000) |
Group (EUR 000) |
|
|---|---|---|---|---|---|
| YEAR ENDED DECEMBER 31, 2016 | |||||
| Net sales and services* | 12 714 | 111 561 | 204 499 | 0 | 328 774 |
| Non-current assets | 67 674 | 8 232 | 6 552 | 0 | 82 458 |
| Current assets | 247 365 | 16 752 | 32 640 | 0 | 296 757 |
| Segment assets | 315 039 | 24 984 | 39 192 | 0 | 379 215 |
| Investments accounted for using the equity method |
0 | 0 | 1 402 | 0 | 1 402 |
| Unallocated assets | 0 | ||||
| TOTAL ASSETS | 380 617 | ||||
| Capital expenditure (incl. fixed assets from acquisitions in 2016) |
11 215 | 580 | 1 170 | 0 |
*There is no breakdown of sales and services available by geographical sector.
As at December 31, 2016, no single customer represents more than 10% of the Group's sales and services.
As at December 31, 2016, the IBA Group consists of IBA SA and 21 companies and associates in 11 countries. 18 of them are fully consolidated and 3 are accounted for using the equity method.
| NAME | Assets held for sale |
Country of incorporation |
Equity ownership (%) |
Change in % ownership over December 31, 2015 |
|---|---|---|---|---|
| IBA Molecular Holding (BE 0880.070.706) Chemin du Cyclotron, 3, B-1348 LLN |
No | Belgium | 100% | - |
| IBA Participations SPRL (BE 0465.843.290) Chemin du Cyclotron, 3, B-1348 LLN |
No | Belgium | 100% | - |
| IBA Investments SCRL (BE 0471.701.397) Chemin du Cyclotron, 3, B-1348 LLN |
No | 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 |
No | China | 100% | - |
| Striba GmbH Waidmarkt 11, 50676 KÖLN, GERMANY |
No | Germany | 100% | - |
| IBA RadioIsotopes France SAS 59 Blvd Pinel, 69003 LYON |
No | France | 100% | - |
| IBA Dosimetry GmbH Bahnhofstrasse 5, 90592 Schwarzenbruck. Germany |
No | Germany | 100% | - |
| IBA Dosimetry America Inc. 3150 Stage Post Dr. Ste. 110, Bartlett, TN 38133, USA |
No | USA | 100% | - |
| IBA Proton Therapy Inc. 152 Heartland Blvd, Edgewood New York 11717, USA |
No | USA | 100% | - |
| IBA Industrial Inc. 152 Heartland Blvd, Edgewood New York 11717, USA |
No | USA | 100% | - |
| RadioMed Corporation 3149 Stage Post Drive Suite 110, Bartlett, TN 38133, USA |
No | USA | 100% | - |
| IBA USA Inc. 151 Heartland Blvd, Edgewood New York 11717, USA |
No | USA | 100% | - |
| IBA Particle Therapy GmbH Bahnhofstrasse 5, 90592 Schwarzenbruck, Germany |
No | Germany | 100% | - |
| Normandy Hadrontherapy SAS (1) 9 rue Ferdinand Buisson, 14280 Saint-Contest |
No | France | 100% | - |
| LLC Ion Beam Applications 1st Magistralny tupik, 5A 123290 Moscow, Russia |
No | 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 |
No | India | 100% | - |
| IBA (Thailand) Co., Ltd N°888/70, Mahatun Plaza, 7th floor, Ploenchit Road Lumpini Sub-district, Parthumwan district, Bangkok |
No | Thailand | 100% | +100% |
| IBA Argentina SRL Ortiz de Ocampo 3302 Modulo 1 Buenos Aires (1425) |
No | Argentina | 100% | +100% |
| NAME | Country of incorporation | Equity ownership (%) |
Change in % ownership over December 31, 2015 |
|---|---|---|---|
| CONTINUING OPERATIONS | |||
| Sceti Medical Labo KK | Japan | 39.80% | - |
| Rose Holding SARL | Luxembourg | 0.00% | -40.00% |
| Cyclhad SAS | France | 33.33% | - |
| DISCONTINUING OPERATIONS | |||
| PharmaLogic Pet Services of Montreal Cie | Canada | 48.00% | - |
On December 11, 2015, IBA had signed a definitive agreement for the sale of IBA Molecular (Rose Holding SARL), to Funds advised by CapVest Partners LP ("CapVest"). The transaction was closed at the end of the first quarter of 2016.
Rose Holding SARL has been accounted using the equity method until November 30, 2015.
IFRS 5 specifies that IBA has to reclassify in the income statement as "Profit/(loss) from discontinued operations" and in the statement of financial position as "assets and liabilities held for sale" all of the business over which IBA will lose control.
For years 2015 and 2016, there were no businesses within the Group that met the requirements of reclassification of IFRS 5.
No company was acquired during the 2016 financial year.
On December 11, 2015, Rose Holding SARL (IBA Molecular) was sold to Funds advised by CapVest Partners LP ("CapVest") by IBA and SK Capital Partners.
Rose Holding SARL has therefore been equity accounted until November 30, 2015. The closing of the disposal took place on March 22, 2016. (see also note 11).
In 2015, the assets sold recognized under the heading ''Investments accounted using the equity method'' were as follows:
| Participation | Contingent loan |
Total | |
|---|---|---|---|
| Closing balance December 31, 2014 | 15 076 | 19 449 | 34 525 |
| Share of profit/(loss) of companies consolidated using the equity method | 14 128 | 14 128 | |
| Revaluation of the contingent loan through income statement (see note 3.E) | -13 619 | -13 619 | |
| Equity movements of equity accounted investments | -244 | -244 | |
| Dividend received from Rose Holding SARL following disposal of IBA North America | -10 000 | -10 000 | |
| Closing balance November 30, 2015 | 18 960 | 5 830 | 24 790 |
In 2015, the profit of EUR 14.1 million was primarily related to the sale of IBA North America, Inc. (IBAM NA) to Illinois Health and Science (IHS) signed in April 2015 and closed in July 2015.
As at December 31, 2015, in the framework of the disposal of IBA Molecular (Rose Holding SARL) and based on an agreement signed by both parties, the contingent loan had been revaluated at EUR 5.83 million.
The impact of this sale on the Group's cash at the date of the disposal was as follows:
| December 31, 2015 (EUR 000) |
|
|---|---|
| Net assets sold | 24 790 |
| Realized gain on disposal – non cash | -1 070 |
| Realized gain on disposal – cash | 38 595 |
| Other short term receivables | -64 011 |
| Other long term payables | 1 696 |
| Proceed from the sale | 0 |
The gain from the sale is as follows:
| December 31,2015 (EUR 000) |
|
|---|---|
| Other current assets | 62 796 |
| Net assets sold | -24 790 |
| Reserves recycled through the income statement | 2 285 |
| Other current liabilities | -1 696 |
| Total | 38 595 |
Movements of goodwill are detailed as follows:
| As at January 1, 2015 | 3 821 |
|---|---|
| Goodwill impairment | 0 |
| Currency translation difference | 0 |
| As at December 31, 2015 | 3 821 |
| As at January 1, 2016 | 3 821 |
| Goodwill impairment | 0 |
| Currency translation difference | 0 |
| As at December 31, 2016 | 3 821 |
The goodwill generated by an acquisition is allocated to the cash-generating units (CGUs) concerned and an impairment test is carried out annually on the CGUs' fixed assets (including goodwill).
The following table summarizes allocation of the carrying amount of goodwill by business segment:
| Proton therapy and | |||
|---|---|---|---|
| (EUR 000) | Other accelerators | Dosimetry | Group |
| December 31, 2015 | 0 | 3 821 | 3 821 |
| December 31, 2016 | 0 | 3 821 | 3 821 |
| Pre-tax discount rate applied in 2015 | 8.52% | ||
| Long-term growth rate 2015 (2) | 2.60% | ||
| Pre-tax discount rate applied in 2016 (1) | 7.68% | ||
| Long-term growth rate 2016(2) | 2.60% |
(1) Data used for the calculation of pre-tax discount rate applied: cost of equity of 9%, cost of debt of 2%, market value of the IBA Dosimetry GmbH equity of EUR 15 552, market value of IBA Dosimetry GmbH debt of EUR 3 240 and corporate tax rate of 30%.
(2) Rate consistent with expected growth in the sector.
The recoverable amounts of goodwill have been determined on a "value in use" basis.
Value in use has been determined on the basis of IBA's latest business plans, as approved by the Board of Directors in the context of the strategic plan. The cash flows beyond a four-year period have been extrapolated using the growth rates shown in the table above. Impairment testing uses gross budgeted operational margins estimated by management on the basis of past performance.
The discount rates used reflect the specific risks related to the segments in question.
For the CGU Dosimetry, if the growth rate is decreased by 100 basis points and the discount rate is increased by 100 basis points, the recoverable amount remains greater than the carrying amount of the tested assets. No impairment was identified in 2015 and 2016.
| Patents and | Development | ||||
|---|---|---|---|---|---|
| EUR 000 | Software | trademarks | costs | Other | Total |
| Gross carrying amount as at January 1, 2015 | 17 914 | 124 | 0 | 2 435 | 20 473 |
| Additions | 1 691 | 0 | 0 | 130 | 1 821 |
| Disposals | -391 | 0 | 0 | -4 | -395 |
| Transfers | 1 291 | 0 | 0 | -1 291 | 0 |
| Currency translation difference | 88 | 14 | 0 | 3 | 105 |
| Gross carrying amount as at December 31, 2015 | 20 593 | 138 | 0 | 1 273 | 22 004 |
| Accumulated depreciation as at January 1, 2015 | 10 115 | 124 | 0 | 1 056 | 11 295 |
| Additions | 2 133 | 0 | 0 | 93 | 2 226 |
| Disposals | -244 | 0 | 0 | 0 | -244 |
| Currency translation difference | 84 | 14 | 0 | 0 | 98 |
| Accumulated depreciation as at December 31, 2015 | 12 088 | 138 | 0 | 1 149 | 13 375 |
| Net carrying amount as at January 1, 2015 | 7 799 | 0 | 0 | 1 379 | 9 178 |
| Net carrying amount as at December 31, 2015 | 8 505 | 0 | 0 | 124 | 8 629 |
| Gross carrying amount as at January 1, 2016 | 20 593 | 138 | 0 | 1 273 | 22 004 |
| Additions | 1 119 | 0 | 0 | 2 440 | 3 559 |
| Disposals | -217 | 0 | 0 | 0 | -217 |
| Transfers | 35 | 0 | 0 | -35 | 0 |
| Currency translation difference | -14 | 4 | 0 | 36 | 26 |
| Gross carrying amount as at December 31, 2016 | 21 516 | 142 | 0 | 3 714 | 25 372 |
| Accumulated depreciation as at January 1, 2016 | 12 088 | 138 | 0 | 1 149 | 13 375 |
| Additions | 2 163 | 0 | 0 | 56 | 2 219 |
| Disposals | -217 | 0 | 0 | 0 | -217 |
| Currency translation difference | -17 | 4 | 0 | 36 | 23 |
| Accumulated depreciation as at December 31, 2016 | 14 017 | 142 | 0 | 1 241 | 15 400 |
| Net carrying amount as at January 1, 2016 | 8 505 | 0 | 0 | 124 | 8 629 |
| Net carrying amount as at December 31, 2016 | 7 499 | 0 | 0 | 2 473 | 9 972 |
In 2015 and 2016, the majority of the intangible assets involves softwares (mainly SAP, Microsoft licenses, Customer Relationship Management (CRM), Computerized Maintenance Management System (CMMS) and Product Lifecycle Management (PLM)).
Amortization expense for intangible assets was recognized in the income statement in the "Cost of sales and services", "Sales and marketing expenses", "General and administrative expenses", "Research and development expenses", and "Other operating expenses" line items.
No impairment of the intangible assets was identified on December 31, 2015 and December 31, 2016.
| Land and | Plant, machinery and |
Furniture, fixtures and |
Other tangible fixed |
||
|---|---|---|---|---|---|
| EUR 000 | buildings | equipment | vehicles | assets | Total |
| Gross carrying amount as at January 1, 2015 | 10 577 | 7 758 | 3 344 | 4 148 | 25 827 |
| Additions | 517 | 950 | 64 | 953 | 2 484 |
| Disposals | -105 | -1 477 | -985 | -70 | -2 637 |
| Transfers | 9 | 31 | 6 | -46 | 0 |
| Currency translation difference | 32 | 259 | 215 | 44 | 550 |
| Gross carrying amount as at December 31, 2015 | 11 030 | 7 521 | 2 644 | 5 029 | 26 224 |
| Accumulated depreciation as at January 1, 2015 | 6 739 | 4 182 | 2 916 | 3 327 | 17 164 |
| Additions | 318 | 1 001 | 109 | 445 | 1 873 |
| Disposals | -105 | -1 463 | -981 | -69 | -2 618 |
| Transfers | 0 | 0 | 0 | 0 | 0 |
| Currency translation difference | 18 | 232 | 196 | 32 | 478 |
| Accumulated depreciation as at December 31, 2015 | 6 970 | 3 952 | 2 240 | 3 735 | 16 897 |
| Net carrying amount as at January 1, 2015 | 3 838 | 3 576 | 428 | 821 | 8 663 |
| Net carrying amount as at December 31, 2015 | 4 060 | 3 569 | 404 | 1 294 | 9 327 |
| Gross carrying amount as at January 1, 2016 | 11 030 | 7 521 | 2 644 | 5 029 | 26 224 |
| Additions | 2 522 | 2 779 | 601 | 3 504 | 9 406 |
| Disposals | 0 | -1 | -524 | -2 | -527 |
| Transfers | 50 | 347 | 0 | -397 | 0 |
| Currency translation difference | 8 | 36 | -5 | 43 | 82 |
| Gross carrying amount as at December 31, 2016 | 13 611 | 10 682 | 2 715 | 8 177 | 35 185 |
| Accumulated depreciation as at January 1, 2016 | 6 970 | 3 952 | 2 240 | 3 735 | 16 897 |
| Additions | 377 | 1 206 | 140 | 729 | 2 452 |
| Disposals | 0 | -1 | -524 | -1 | -526 |
| Transfers | 0 | 0 | -1 | 1 | 0 |
| Currency translation difference | 4 | 30 | -9 | 15 | 40 |
| Accumulated depreciation as at December 31, 2016 | 7 351 | 5 187 | 1 846 | 4 479 | 18 863 |
| Net carrying amount as at January 1, 2016 | 4 060 | 3 569 | 404 | 1 294 | 9 327 |
| Net carrying amount as at December 31, 2016 | 6 260 | 5 495 | 869 | 3 698 | 16 322 |
Other tangible fixed assets mainly include computer hardware and assets under construction. There are no tangible fixed assets subject to title restrictions.
Depreciation expense for tangible assets was recognized in the income statement in the "Cost of sales and services", "Sales and marketing expenses", "General and administrative expenses", "Research and development expenses" and "Other operating expenses" line items.
No impairment was recognized in the 2015 and 2016 financial year.
In 2015 and 2016, the disposals of tangible assets mainly correspond to the scrapping of unused assets by the Group.
IBA holds the following assets under finance lease contracts:
| (EUR 000) | Land and buildings | Plant, machinery and equipment | Furniture, fixtures and vehicles | |||
|---|---|---|---|---|---|---|
| December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |
| 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | |
| Gross carrying amount | 5 847 | 5 847 | 89 | 88 | 73 | 71 |
| Accumulated depreciation | 3 323 | 3 489 | 80 | 83 | 73 | 71 |
| Net carrying amount | 2 524 | 2 358 | 9 | 5 | 0 | 0 |
Details of lease payments on finance liabilities relating to leased assets are set out in Note 19.2. These amounts are included in tangible fixed assets.
The finance lease contracts at the end of 2016 mainly relate to several buildings located in Louvain-la-Neuve, for which call options of EUR 0.2 million may be levied at the end of these contracts.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Investments accounted for using the equity method | 1 888 | 1 402 |
| Other investments | 7 116 | 8 909 |
| TOTAL | 9 004 | 10 311 |
Equity-accounted companies are listed in Note 5.2.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| As at January 1 | 37 072 | 1 888 |
| Share of profit/(loss) of equity-accounted investments | 293 | 145 |
| Additions | 0 | 0 |
| Disposals | -24 790 | 0 |
| Impact of margin elimination on tangible assets | -566 | -703 |
| Dividend received | -10 000 | 0 |
| Equity movements of equity accounted investments | -121 | 72 |
| Currency translation difference | 0 | 0 |
| As at December 31 | 1 888 | 1 402 |
On January 9, 2012, IBA and SK Capital Partners, a private investment fund based in the United States, announced that they had signed an agreement to create Rose Holding SARL, a company regrouping the assets and liabilities from IBA's Radiopharmaceutical division.
Following this transaction, SK Capital Partners hold 60% of the new venture and IBA 40% (acquisition value of EUR 21.3 million).
In August 2015, IBA announced that the US activities of IBA Molecular had been acquired by Illinois Health and Science.
On December 11, 2015, IBA signed a definitive agreement for the sale of IBA Molecular (Rose Holding SARL), to Funds advised by CapVest Partners LP ("CapVest"). The closing of the transaction was finalized at the end of the first quarter of 2016.
IBA Molecular (Rose Holding SARL) has been accounted for using the equity method until November 30, 2015.
The Group's holdings in its principal associates, all of which are unlisted, are as follows:
| (EUR 000) | Country | Assets | Liabilities | Revenue | Profit/(Loss) | % Interest |
|---|---|---|---|---|---|---|
| 2015 | ||||||
| CONTINUING OPERATIONS | ||||||
| Sceti Medilabo KK | Japan | 5 266 | 4 450 | 3 417 | -539 | 39.8% |
| Rose Holding SARL (1) | Luxembourg | 213 488 | 165 038 | 168 706 | 35 634 | 40.0% |
| Cyclhad SAS | France | 40 018 | 35 508 | 0 | 0 | 33.33% |
| DISCONTINUING OPERATIONS | ||||||
| PharmaLogic Pet Services of | Canada | 379 | 247 | 0 | -157 | 48.0% |
| Montreal Cie. (2) | ||||||
| 2016 | ||||||
| CONTINUING OPERATIONS | ||||||
| Sceti Medilabo KK | Japan | 6 659 | 5 460 | 5 097 | 364 | 39.8% |
| Cyclhad SAS | France | 57 274 | 52 764 | 0 | 0 | 33.33% |
| DISCONTINUING OPERATIONS | ||||||
| PharmaLogic Pet Services of | Canada | 97 | 0 | 0 | -151 | 48.0% |
| Montreal Cie. (2) |
(1) Financials statement as of November 30, 2015.
(2) The activity of the company was sold in March 2014 through an asset deal.
Financial position of material equity-accounted investments:
| Sceti Medilabo KK | Cyclhad SAS | |
|---|---|---|
| (JPY 000) | (EUR 000) | |
| December 31, 2016 | December 31, 2016 | |
| ASSETS | ||
| Property, plant and equipment | 471 112 | 50 632 |
| Intangible assets and goodwill | 3 860 | 0 |
| Other receivables | 126 | 0 |
| Non-current assets | 475 098 | 50 632 |
| Inventories | 80 649 | 0 |
| Trade receivables | 164 497 | 0 |
| Other receivables | 12 557 | 960 |
| Cash and cash equivalents | 88 929 | 5 682 |
| Current assets | 346 632 | 6 642 |
| TOTAL ASSETS | 821 730 | 57 274 |
| EQUITY AND LIABILITIES | ||
| Equity attributable to owners of the company | 147 854 | 4 510 |
| Non-controlling interests | 0 | 0 |
| Equity | 147 854 | 4 510 |
| Loans and borrowings | 360 000 | 52 391 |
| Non-current liabilities | 360 000 | 52 391 |
| Current tax liabilities | 8 046 | 0 |
| Loans and borrowings | 100 000 | 0 |
| Trade payables | 173 886 | 362 |
| Other payables | 21 723 | 11 |
| Provisions | 10 221 | 0 |
| Current liabilities | 313 886 | 373 |
| TOTAL LIABILITIES | 821 730 | 57 274 |
Income statement of material equity-accounted investments:
| Sceti Medilabo KK (JPY 000) December 31, 2016 |
Cyclhad SAS (EUR 000) December 31, 2016 |
|
|---|---|---|
| INCOME STATEMENT | ||
| Sales | 613 213 | 0 |
| Cost of sales (-) | -219 717 | 0 |
| Gross profit | 393 496 | 0 |
| Operating expenses (-) | -329 990 | 0 |
| Other (expenses) | -9 325 | 0 |
| Result from operating activities | 54 181 | 0 |
| Financial income | 895 | 0 |
| Financial (expenses) | -5 754 | 0 |
| Result before tax | 49 322 | 0 |
| Tax income/(expenses) | -8 046 | 0 |
| Net result for the period from continuing operations | 41 276 | 0 |
| Depreciation and amortization | 79 448 | 0 |
Other comprehensive income of material equity-accounted investments:
| Sceti Medilabo KK (JPY 000) |
Cyclhad SAS (EUR 000) |
|
|---|---|---|
| December 31, 2016 | December 31, 2016 | |
| Profit/ (loss) for the period | 41 276 | 0 |
| Items that will not be reclassified subsequently to profit or loss | ||
| Remeasurements of defined benefit liability | 0 | 0 |
| Income tax on items that will not be reclassified to profit or loss | 0 | 0 |
| Total items that will not be reclassified to profit or loss | 0 | 0 |
| Items that may be reclassified subsequently to profit or loss | ||
| Change in fair value of cash flow hedges | 0 | 0 |
| Changes in fair value of assets held to cover the funding of decommissioning liabilities |
0 | 0 |
| Foreign currency translation adjustments | 0 | 0 |
| Total items that may be reclassified to profit or loss | 0 | 0 |
| Other comprehensive income for the period, net of tax | 0 | 0 |
| Total comprehensive income for the period | 41 276 | 0 |
The "Other investments" are comprised of shares of unlisted companies. These shares are reassessed either on the basis of the discount method for expected future cash flows, or on the basis of the value granted to them during the most recent operation to raise additional capital or from valuation by independent third parties.
| (EUR 000) | TOTAL |
|---|---|
| As at December 31, 2015 | 7 116 |
| Equity stake acquisition | 1 793 |
| Equity stake disposal | 0 |
| Movements through reserves | 0 |
| Impairment | 0 |
| As at December 31, 2016 | 8 909 |
In 2016, the Group took a stake of 10.26% (USD 2 million) in HIL Applied Medical Ltd, a private Israeli developer of laser-based proton therapy systems which is applying a novel, patented approach to particle acceleration and delivery, combining nontechnology with ultra-high-intensity lasers and ultrafast magnets. This potential technological breakthrough could enable a meaningful reduction in the size and cost of proton therapy systems without compromising clinical utility. Alongside this investment, IBA and HIL have signed an Original Equipment Manufacturer (OEM) agreement which gives IBA the right to purchase HIL's laser-based proton accelerators for the purpose of integrating them into proton therapy solutions.
In 2015, the Group took a stake of 7.58% (GBP 5 million) in Proton Partners International (PPI) with which the Group signed contracts to install three Proteus®ONE in private clinics in the United Kingdom. In 2016, PPI has signed three additional Proteus®ONE contracts, two of which are in the United Kingdom and one in the United Arab Emirates.
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 balance sheet 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. The period used for estimates of the future taxable profits taken into account for the recognition of deferred tax assets is 4 years. The assumptions taken in consideration in the financial plans are as follow: in 2017, IBA expects to achieve a revenue growth of around 15% to 20% in 2017 and double digit thereafter and operating margins of approximately 11% to 12% in 2017 increasing to 13% – 15% in 2018 and stabilizing at 15% by 2020.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| DEFERRED TAX ASSETS | ||
| - Deferred tax assets to be recovered after 12 months – Tax losses on carry-forward | 20 477 | 20 370 |
| - Deferred tax assets to be recovered after 12 months - temporary differences | 0 | 0 |
| - Deferred tax assets to be recovered within 12 months - Tax losses on carry-forward | 0 | 0 |
| - Deferred tax assets to be recovered within 12 months - temporary differences | 2 744 | 2 426 |
| TOTAL | 23 221 | 22 796 |
| DEFERRED TAX LIABILITIES | ||
| - Deferred tax liabilities to be paid after 12 months - temporary differences | 697 | 582 |
| - Deferred tax liabilities to be paid within 12 months - temporary differences | 0 | 0 |
| TOTAL | 697 | 582 |
| Net deferred tax assets | 22 524 | 22 214 |
In 2015 and in 2016, the recognized temporary differences are mainly related to taxable deferred revenues, non-deductible allowance for doubtful accounts, expenses accrual and inventory in the US entities.
| (EUR 000) | TOTAL |
|---|---|
| DEFERRED TAX ASSETS | |
| As at January 1, 2015 | 23 018 |
| Credited/(charged) to the income statement | -50 |
| Currency translation difference | 253 |
| As at December 31, 2015 | 23 221 |
| Credited/(charged) to the income statement | -605 |
| Currency translation difference | 180 |
| As at December 31, 2016 | 22 796 |
| (EUR 000) | TOTAL |
|---|---|
| DEFERRED TAX LIABILITIES | |
| As at January 1, 2015 | 854 |
| (Credited)/charged to the income statement | -157 |
| Currency translation difference | 0 |
| As at December 31, 2015 | 697 |
| (Credited)/charged to the income statement | -115 |
| Currency translation difference | 0 |
| As at December 31, 2016 | 582 |
Deferred tax assets are recognized on tax loss carryforwards to the extent that it is likely that they can be recovered through future earnings. Note 3.A explains the estimates and judgments used by IBA in making this assessment.
On December 31, 2016, EUR 10.6 million of deferred taxes were not recognized as assets in the balance sheet (EUR 10.9 million in 2015).
Tax losses and corresponding temporary differences have no expiry dates.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Long-term receivables on contracts in progress | 882 | 837 |
| Research tax credit | 7 643 | 9 077 |
| Other assets | 8 166 | 8 553 |
| TOTAL | 16 691 | 18 467 |
As at December 31, 2016, "Other assets" mainly consists of EUR 0.8 million in receivables with associated company, a loan (principal and interest) and receivables for a total amount of EUR 7.5 million in a company in which the Group holds a participation and bank deposits of EUR 0.2 million.
As at December 31, 2015, "Other assets" mainly consists of EUR 0.7 million in receivables with associated company, a loan (principal and interest) and receivables for a total amount of EUR 7.0 million in a company in which the Group holds a participation and bank deposits of EUR 0.4 million.
Work in progress relates to production of inventory for which a customer has not yet been secured, while contracts in progress relate to production for specific customers in performance of a signed contract.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Raw materials and supplies | 50 872 | 60 548 |
| Finished products | 6 178 | 4 929 |
| Work in progress | 3 353 | 2 562 |
| Contracts in progress | 47 202 | 72 961 |
| Write-off of inventories | -7 646 | -8 298 |
| Inventories and contracts in progress | 99 959 | 132 702 |
| Costs to date and recognized revenue | 519 437 | 564 062 |
| Less : progress billings | -472 235 | -491 101 |
| Contracts in progress | 47 202 | 72 961 |
| Net amounts due to customers for contracts in progress (Note 24) | 104 620 | 85 516 |
As at December 31, 2015 and 2016, there are no contracts in progress set as a warranty to cover the financing of a proton therapy contract.
Trade account receivables are detailed as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Amounts invoiced on contracts in progress but for which payment has not yet been received at balance sheet date |
2 686 | 4 780 |
| Other trade receivables | 60 058 | 64 052 |
| Impairment of trade receivables (-) | -2 806 | -3 096 |
| TOTAL | 59 938 | 65 736 |
Other trade receivables include a sum of EUR 661 (EUR 730 in 2015) for receivables assumed under the agreement with SK Capital Partners. Their due payment date is not included in the table below.
As at December 31, the repayment schedule for trade receivables (excluding impairments) was as follows:
| (EUR 000) | TOTAL | not due | < 30 days | 30-59 | 60-89 | 90-179 | 180-269 | 270-360 | > 1 year |
|---|---|---|---|---|---|---|---|---|---|
| 2015 | 62 015 | 27 052 | 8 490 | 13 391 | 2 370 | 1 711 | 497 | 303 | 8 201 |
| 2016 | 68 171 | 25 466 | 15 170 | 5 239 | 2 450 | 13 677 | 923 | 176 | 5 070 |
As at December 31, 2016, trade receivable impairments totaled EUR 3.1 million. Changes in the provision for doubtful debts for the past two years are as follows:
| (EUR 000) | |
|---|---|
| As at January 1, 2015 | 3 221 |
| Charge for the year | 707 |
| Utilizations | -488 |
| Write-backs | -756 |
| Currency translation difference | 122 |
| As at December 31, 2015 | 2 806 |
| Charge for the year | 888 |
| Utilizations | 0 |
| Write-backs | -635 |
| Currency translation difference | 37 |
Other receivables on the balance sheet primarily involve advance payments on orders, deferred charges and accrued income.
Other receivables are detailed as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Non-trade receivables and advance payments | 11 927 | 16 403 |
| Deferred charges | 1 175 | 2 625 |
| Accrued income | 824 | 853 |
| Current income tax receivable | 1 455 | 1 496 |
| Other current receivables | 66 465 | 1 032 |
| TOTAL | 81 846 | 22 409 |
As at December 31, 2016, the "Other current receivables" heading is mainly composed of ''research tax credit" for EUR 0.88 million.
As at December 31, 2016, the ''Current income tax receivable'' heading is composed of tax assets in the United States for EUR 0.76 million and in Germany for EUR 0.73 million.
As at December 31, 2015, the "Other current receivables" heading was mainly composed of a discounted earn-out related to the disposal of Pharmalogic Montreal assets concluded in March 2014 for EUR 1.15 million, the receivable resulting from the disposal in December 2015 of IBA Molecular by IBA and SK Capital Partners to Funds advised by CapVest Partners LP ("CapVest") for EUR 64 million and ''research tax credit" for EUR 0.94 million.
As at December 31, 2015, the ''Current income tax receivable'' heading was composed of tax assets in the United States for EUR 0.26 million, in Germany for EUR 1.18 million.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Bank balances and cash | 38 672 | 54 501 |
| Accounts with restrictions shorter than 3 months | 0 | 0 |
| Short-term bank deposits | 43 043 | 20 063 |
| CASH AND CASH EQUIVALENTS - CONTINUING OPERATIONS | 81 715 | 74 564 |
| Cash and cash equivalents attributable to discontinued operations (Note 6) | 0 | 0 |
| CASH AND CASH EQUIVALENTS - CONTINUING OPERATIONS AND DISCONTINUED OPERATIONS |
81 715 | 74 564 |
As at December 31, 2016, the effective interest rate on the cash position was 0.13% (0.21% in 2015). Short-term deposits have an average maturity of less than 30 days.
| Number of shares | Issued capital stock (EUR) |
Capital surplus (EUR) |
Treasure shares (EUR) |
Total (EUR) | |
|---|---|---|---|---|---|
| Balance as at January 1, 2015 | 28 393 804 | 39 851 781 | 32 431 369 | -8 612 421 | 63 670 729 |
| Stock options exercised | 721 263 | 1 012 405 | 4 897 371 | 0 | 5 909 776 |
| Capital increases (other) | 0 | 0 | 0 | 0 | 0 |
| Disposal of treasury shares | 0 | 0 | 0 | -110 442 | -110 442 |
| Balance as at December 31, 2015 | 29 115 067 | 40 864 186 | 37 328 740 | -8 501 979 | 69 690 947 |
| Stock options exercised | 649 329 | 911 369 | 3 289 158 | 0 | 4 200 527 |
| Capital increases (other) | 0 | 0 | 0 | 0 | 0 |
| Disposal of treasury shares | 0 | 0 | 0 | 0 | 0 |
| Balance as at December 31, 2016 | 29 764 396 | 41 775 555 | 40 617 898 | -8 501 979 | 73 891 474 |
As at December 31, 2016, 63.39% of IBA's stock was ''trading'' on Euronext. Full details of the Group's shareholders are set out in the section "The stock market and shareholders" on page 152 of this annual report.
In 2014, a subordinated facility bond of EUR 9 million had been granted by S.F.P.I (undrawn as at December 31, 2016). This subordinated facility bond expired on December 31, 2016, and the Group has decided not to extend the availability of this subordinated facility bond.
IBA's Board of Directors will recommend to the General Assembly the distribution of a dividend of EUR 0.29 per share representing more than 35% of its net profit.
Group employees and Management can purchase or obtain IBA stock through various stock option and stock plans. Option strike prices are set at the market price of the underlying stock on the date of grant. In the case of the stock plans, the benefit awarded is either the market value of the stock at the grant date or a discount of 16.67 % on the value of the stock at the grant date. Stock ownership vests irrevocably on the date of grant.
However, stock must be held for three years following the grant date. In the case of stock option plans, the fair value of the benefit awarded is measured using the Black & Scholes model, as described below. The benefit granted is recognized as an employee expense, and the share-based payment reserve is increased accordingly.
As at December 31, 2016, IBA had 4 stock option plans in place.
Stock option plans launched from 2002 to 2012 have the following vesting scheme: 20 percent vesting at grant date + 1 year, 40 percent at grant date + 2 years, 60 percent at grant date + 3 years, 80 percent at grant date + 4 years and 100 percent at grant date +5 years.
In 2013, no stock option plan has been launched.
Stock option plans launched in 2014 and 2015 have the following vesting scheme: 100 percent vesting as at December 31, 2018.
In 2016, no stock option plan has been launched.
Details of the plans launched in 2016 and 2015 are given in this section.
| December 31, 2015 | December 31, 2016 | |
|---|---|---|
| Type of plan | Stock option | N/A |
| Date of grant | 31/12/2015 | N/A |
| Number of options granted | 50 000 | N/A |
| Exercise price | 31.84 | N/A |
| Share price at date of grant | 32.61 | N/A |
| Contractual life (years) | 9 | N/A |
| Settlement | Shares | N/A |
| Expected volatility | 37.00% | N/A |
| Expected option life at grant date (years) | 6 | N/A |
| Risk-free interest rate | 0.88% | N/A |
| Expected dividend (stated as % of share price at grant date) | 0.5% | N/A |
| Expected departures at grant date | 0% | N/A |
| Fair value per granted option at grant date | 11.55 | N/A |
| Valuation model | Black & Scholes | N/A |
The Company uses the Black & Scholes model to valuate options, with no vesting conditions other than time. Expected volatility for the stock option plans is based on historical volatility determined by statistical analysis of daily share price movements. The fair value of shares for the stock option plans was based on the average share price for the 30 days preceding the grant date.
As at December 31, 2016, a charge of EUR 0.55 million was recognized in the other operating expenses for employee stock options (EUR 0.57 million in 2015).
The stock options outstanding as at December 31 have the following expiration dates and exercise prices:
| December 31, 2015 | December 31, 2016 | |||
|---|---|---|---|---|
| Expiration date | Exercise price (EUR) |
Number of stock options |
Exercise price (EUR) |
Number of stock options |
| September 30, 2016 | 19.94 | 39 219 | 19.94 | 0 |
| September 30, 2016 | 7.80 | 143 979 | 7.80 | 0 |
| September 30, 2017 | 5.10 | 355 127 | 5.10 | 100 137 |
| September 30, 2018 | 4.78 | 487 487 | 4.78 | 261 366 |
| June 30, 2024 | 11.52 | 196 500 | 11.52 | 186 500 |
| June 30, 2024 | 31.84 | 50 000 | 31.84 | 50 000 |
| TOTAL outstanding stock options | 1 272 312 | 598 003 |
On February 24, 2015, IBA decided to shift the exercise periods for SOPs 2006, 2007, 2009, 2010, 2011, 2012 and 2014. The exercise periods of March, June and September were shifted to April, July and October respectively, so as to have the four exercise periods well distributed along the year (January, April, July and October).
On August 26, 2015, IBA decided to make the current SOPs exercisable on a continued period (outside of anti-insider dealing black out period and outside one additional technical black out period) as from October 1, 2015.
Stock option movements can be summarized as follows:
| December 31, 2015 | December 31, 2016 | |||
|---|---|---|---|---|
| Expiration date | Average exercise price in EUR per share |
Number of stock options |
Average exercise price in EUR per share |
Number of stock options |
| Outstanding as at January 1 | 7.31 | 2 075 675 | 7.78 | 1 272 312 |
| Issued | 31.84 | 50 000 | 0 | |
| Forfeited (-) | 7.32 | -132 100 | 7.90 | -24 980 |
| Exercised (-) | 8.18 | -721 263 | 6.47 | -649 329 |
| Outstanding as at December 31 | 7.78 | 1 272 312 | 9.20 | 598 003 |
| Exercisable as at December 31 | 693 287 | 296 162 |
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Hedging reserves | -3 236 | -2 501 |
| Other reserves - value of stock option plans and share-based compensation | 14 736 | 15 285 |
| Other reserves – other | 175 | 175 |
| Actuarial reserves | 0 | -3 463 |
| Currency translation difference | -1 993 | -1 367 |
| Retained earnings | 84 259 | 68 370 |
According to the Belgian Company Code, the legal reserve must equal at least 10% of the Company's capital stock. Until such time as this level is attained, a top slice of at least one twentieth of the net profit for the year (determined according to Belgian accounting law) must be allocated to building this reserve fund.
The hedging reserve includes changes in the fair value of financial instruments used to hedge cash flows of future transactions.
Cumulative translation difference includes differences related to the translation of financial statements of consolidated entities whose functional currency is not the euro. It also includes foreign exchange differences arising from long-term loans that are part of the Group's net investment in foreign operations.
In 2016, a profit of EUR 0.42 million on the retranslation of these loans was reclassified to equity in order to offset the loss arising from the translation of these loans between subsidiaries of the Group (profit of EUR 0.15 million in 2015).
In 2016, the decrease of ''Actuarial reserves'' is mainly related to the change in accounting policy for employee benefit (see note 1.2.1).
In 2015, the decrease of ''Other reserves – Reserves movements of investments accounted for using the equity method'' was related to the disposal of IBA Molecular by IBA and SK Capital Partners to Funds advised by CapVest Partners LP ("CapVest").
In 2015, the decrease of ''Other reserves – reverse convertible bond SRIW'' was tied to the transfer in bank and other borrowings further to the nonconversion of this loan into capital by the Group at 31 December 2015.
As at December 31, 2015 and 2016, the following loans between subsidiaries are designated as the Group's permanent financing in foreign operations:
In 2015, the movement of the currency translation adjustment included EUR -0.33 million from the technical recycling of currency translation adjustment to the income statement further to the disposal by IBA and SK Capital Partners of IBA Molecular (IAS 21.48).
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Non-current | ||
| Bank and other borrowings (Note 19.1) | 15 000 | 27 750 |
| Financial lease liabilities (Note 19.2) | 220 | 0 |
| TOTAL | 15 220 | 27 750 |
| Current | ||
| Short-term bank loans | 0 | 0 |
| Bank and other borrowings (Note 19.1) | 16 250 | 2 000 |
| Financial lease liabilities (Note 19.2) | 204 | 151 |
| TOTAL | 16 454 | 2 151 |
| December 31, 2015 (EUR '000) |
December 31, 2016 (EUR '000) |
|
|---|---|---|
| Current | 16 250 | 2 000 |
| Non-current | 15 000 | 27 750 |
| Total | 31 250 | 29 750 |
| Opening amount | 31 250 | 31 250 |
| New borrowings | 5 000 | 15 750 |
| Repayment of borrowings | -5 000 | -17 250 |
| Currency translation difference | 0 | 0 |
| Closing balance(1) | 31 250 | 29 750 |
The Group had borrowed EUR 30 million from the European Investment Bank (E.I.B.) and made repayments for a total of EUR 13.75 million at the end of 2015. In January 2016, the Group introduced a notice of early repayment of the total outstanding amount with the purpose to partially refinance this amount in the financial markets at a lower average cost of financing (repayment of EUR 10 million at end February 2016 and repayment of EUR 6.25 million at end March 2016). At December 31, 2016, the E.I.B. bank borrowing is fully repaid.
In 2012, IBA strengthened the availability of financing resources by obtaining a long-term credit facility of EUR 20 million from the S.R.I.W.. Under the terms of this financing, the Group agreed to comply with specific covenants relating to IBA SA's level of equity.
On June 30, 2014, the Group had strengthened its equity with a capital increase from two leading regional and federal investment companies in Belgium for a total amount of EUR 6 million (EUR 5 million from S.R.I.W. and 1 million from S.F.P.I.) and with a ''reverse convertible bond'' subscribed by S.R.I.W. for EUR 5 million. EUR 10 million were used to repay S.R.I.W. outstanding other borrowings.
December 31, 2015 was the latest possible date for converting the EUR 5 million S.R.I.W. bond into equity. At that time, the Group decided not to exercise its right to convert the ''reverse convertible bond'' into equity. As a consequence, the ''reverse convertible bond'' has been reclassified from equity to bank and other borrowings.
In April 2016 IBA borrowed EUR 10 million from a Belgian bank in order to partially refinance the early repayment of E.I.B. outstanding amount. This loan has a 5 years repayment period and will be repaid through 20 equal quarterly instalments in principal. The first repayment in principal of EUR 0.5 million occurred in July 2016. The last instalment will be in April 2021.
In February 2016 IBA issued a private 5 years bond for a total subscribed amount of EUR 5.75 million. The purpose was to partially refinance the E.I.B. early repayment. This loan will be repaid in one instalment in February 2021.
Some financial covenants apply.
As at December 31, 2016, the bank and other borrowings include loans from S.R.I.W. (EUR 15 million) and bank borrowing for EUR 12.7 million. For more details see notes 2.4 and 2.1.3.
As at December 31, 2015, the bank and other borrowings included loans from European Investment Bank (EUR 16.25 million) and from S.R.I.W. (EUR 15 million). For more details see notes 2.4 and 2.1.3.
The maturities of bank and other borrowings are detailed as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| One year or less | 16 250 | 2 000 |
| Between 1 and 2 years | 0 | 2 714 |
| Between 2 and 5 years | 5 000 | 17 179 |
| Over 5 years | 10 000 | 7 857 |
| TOTAL | 31 250 | 29 750 |
| The minimum payments of bank and other borrowings are as follows: | ||
|---|---|---|
| (EUR 000) | December 31, 2015 | December 31, 2016 |
| One year or less | 17 184 | 2 865 |
| Between 1 and 5 years | 7 735 | 23 232 |
| Over 5 years | 11 194 | 8 353 |
| 36 113 | 34 450 | |
| Future interest expense on bank and other borrowings (-) | -4 863 | -4 700 |
| TOTAL | 31 250 | 29 750 |
The effective interest rates for bank and other borrowings at the balance sheet date are as follows:
| December 31, 2015 | December 31, 2016 | |||
|---|---|---|---|---|
| EUR | USD | EUR | USD | |
| Bank debts | 3.33% | N/A | 2.62% | N/A |
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| EUR | 31 250 | 29 750 |
| TOTAL | 31 250 | 29 750 |
Utilized credit facilities are as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| FLOATING RATE | ||
| – expiring within one year | 16 250 | 0 |
| – expiring beyond one year | 0 | 0 |
| TOTAL FLOATING RATE | 16 250 | 0 |
| FIXED RATE | ||
| – expiring within one year | 0 | 2 000 |
| – expiring beyond one year | 15 000 | 27 750 |
| TOTAL FIXED RATE | 15 000 | 29 750 |
| TOTAL | 31 250 | 29 750 |
Unutilized credit facilities are as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| FLOATING RATE | ||
| – expiring within one year | 30 000 | 30 000 |
| TOTAL FLOATING RATE | 30 000 | 30 000 |
| FIXED RATE | ||
| – expiring within one year | 9 000 | 0 |
| TOTAL FIXED RATE | 9 000 | 0 |
| TOTAL | 39 000 | 30 000 |
The facilities expiring within one year are annual facilities subject to review at various dates during the 12 months following the end of the financial year.
The other facilities have been arranged to help to finance the proposed expansion of the Group's activities.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Non-current | 220 | 0 |
| Current | 204 | 151 |
| TOTAL | 424 | 151 |
Changes in financial lease liabilities are as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Opening balance | 625 | 424 |
| New borrowings | 0 | 0 |
| Repayment of borrowings | -201 | -273 |
| Currency translation difference | 0 | 0 |
| Closing balance | 424 | 151 |
Minimum lease payments on financial lease liabilities are as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| One year or less | 225 | 157 |
| Between 1 and 5 years | 230 | 0 |
| Over 5 years | 0 | 0 |
| TOTAL | 455 | 157 |
| Future financial charges on financial leases (-) | -31 | -6 |
| Present value of financial lease liabilities | 424 | 151 |
The present value of financial lease liabilities is as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| One year or less | 204 | 151 |
| Between 1 and 5 years | 220 | 0 |
| Over 5 years | 0 | 0 |
| TOTAL | 424 | 151 |
The carrying amounts of financial lease liabilities are denominated in the following currencies:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| EUR | 419 | 151 |
| USD | 5 | 0 |
| TOTAL | 424 | 151 |
As at December 31, 2016, the average interest rate paid on financial lease debts was 4.02% (4.02% in 2015).
| Environment | Warranties | Litigation Defined employee benefits |
Other employee benefits |
Other | Total | ||
|---|---|---|---|---|---|---|---|
| As at January 1, 2015 | 6 199 | 3 285 | 0 | 0 | 135 | 7 148 | 16 767 |
| Additions (+) | 0 | 3 399 | 140 | 0 | 2 460 | 899 | 6 898 |
| Write-backs (-) | -5 572 | -1 912 | 0 | 0 | 0 | -632 | -8 116 |
| Utilizations (-) | -69 | -1 208 | 0 | 0 | -66 | -1 380 | -2 723 |
| Actuarial (gains)/losses generated during the year |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Reclassifications | 0 | 301 | 0 | 0 | 0 | -301 | 0 |
| Currency translation difference |
0 | 7 | 0 | 0 | 0 | 70 | 77 |
| Total movement | -5 641 | 587 | 140 | 0 | 2 394 | -1 344 | -3 864 |
| As at December 31, 2015 | 558 | 3 872 | 140 | 0 | 2 529 | 5 804 | 12 903 |
| Environment | Warranties | Litigation | Defined employee benefits |
Other employee benefits |
Other | Total | |
|---|---|---|---|---|---|---|---|
| As at December 31, 2015 | 558 | 3 872 | 140 | 0 | 2 529 | 5 804 | 12 903 |
| Change in accounting policies | 0 | 0 | 0 | 3 038 | 0 | 0 | 3 038 |
| As at January 1, 2016 | 558 | 3 872 | 140 | 3 038 | 2 529 | 5 804 | 15 941 |
| Additions (+) | 49 | 1 999 | 0 | 0 | 1 944 | 5 | 3 997 |
| Write-backs (-) | 0 | -1 132 | 0 | -38 | 0 | -248 | -1 418 |
| Utilizations (-) | 0 | -1 749 | 0 | 0 | -67 | -685 | -2 501 |
| Actuarial (gains)/losses generated during the year |
0 | 0 | 0 | 425 | 0 | 0 | 425 |
| Reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Currency translation difference |
0 | -1 | 0 | 0 | 18 | -38 | -21 |
| Total movement | 49 | -883 | 0 | 387 | 1 895 | -966 | 482 |
| As at December 31, 2016 | 607 | 2 989 | 140 | 3 425 | 4 424 | 4 838 | 16 423 |
Provisions for decommissioning costs related to the Group sites where radiopharmaceutical agents are produced have been recognized where an obligation exists to incur these costs. These provisions are measured at the net present value of the best estimate of the costs that will need to be incurred. For more information on these provisions, see Note 3 of this report.
Movements can be detailed as follows:
New provisions in relation to Dosimetry of EUR 0.05 million.
Provisions for warranties cover warranties for machines sold to customers.
Movements can be detailed as follows:
See notes 1.2.1 and 28.
Other employee benefits provisions as at December 31, 2016 consisted primarily of the following:
An amount of EUR 4.28 million relating the Group Long Term Incentive plan (for more information see note 3.F).
Details of the main movements are as follows:
New provisions amounting to EUR 1.87 million for the Group Long Term Incentive plan.
Other provisions as at December 31, 2016 consisted primarily of the following:
An amount of EUR 1.02 million relating to nonrecurring commitments on proton therapy projects, an amount of EUR 2.16 million covering the Group's commitments under the agreement with SK Capital Partners, an amount of EUR 1.02 million covering tax risks and an amount of EUR 0,63 million covering a risk of non-recoverability in full on a contractual commitment on a proton therapy project.
Details of the main movements are as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Advances received from local government | 88 | 33 |
| Other | 3 074 | 3 883 |
| TOTAL | 3 162 | 3 916 |
In 2016, the Group has transferred local government advances to short term for EUR 0.05 million, has recorded long-term contractual obligations related to proton therapy projects for EUR 0.3 million and has recorded a liability relating to the margin elimination surplus of a proton therapy project sold to an equity-
accounted company for EUR 0.5 million.
In 2015, the Group had received new advances from the local government amounting to EUR 0.03 million, had transferred local government advances to short term for EUR 0.25 million and had recorded long-term contractual obligations related to proton therapy projects for EUR 0.3 million.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| HEDGE-ACCOUNTED FINANCIAL INSTRUMENTS | ||
| - Forward foreign exchange contracts | 286 | 1 057 |
| - Foreign exchange rate swaps | 0 | 9 |
| INSTRUMENTS RECOGNIZED AT FAIR VALUE | ||
| - Forward foreign exchange contracts | 44 | 81 |
| - Foreign exchange rate swaps | 92 | 199 |
| Short-term financial assets | 422 | 1 346 |
| HEDGE-ACCOUNTED FINANCIAL INSTRUMENTS | ||
| - Forward foreign exchange contracts | 779 | 2 158 |
| INSTRUMENTS RECOGNIZED AT FAIR VALUE | ||
| - Forward foreign exchange contracts | 0 | 13 |
| Long-term financial assets | 779 | 2 171 |
| HEDGE-ACCOUNTED FINANCIAL INSTRUMENTS | ||
| - Forward foreign exchange contracts | 1 592 | 2 408 |
| - Foreign exchange rate swaps | 369 | 380 |
| INSTRUMENTS RECOGNIZED AT FAIR VALUE | ||
| - Forward foreign exchange contracts | 94 | 136 |
| - Foreign exchange rate swaps | 55 | 82 |
| Short-term financial liabilities | 2 110 | 3 006 |
| HEDGE-ACCOUNTED FINANCIAL INSTRUMENTS | ||
| - Forward foreign exchange contracts | 875 | 1 233 |
| INSTRUMENTS RECOGNIZED AT FAIR VALUE | ||
| - Forward foreign exchange contracts | 4 | 190 |
| Long-term financial liabilities | 879 | 1 423 |
The Group's policy on the use of financial instruments is detailed in Note 1.22 on Group accounting policies and Note 2 on financial risk management.
As at December 31, 2016, an amount of EUR 1.35 million recognized as a short-term financial asset represented EUR 1.07 million in cash flow hedging instruments and EUR 0.28 million in hedging instruments recognized at fair value through profit and loss.
As at December 31, 2015, an amount of EUR 0.42 million recognized as a short-term financial asset represented EUR 0.28 million in cash flow hedging instruments and EUR 0.14 million in hedging instruments recognized at fair value through profit and loss.
As at December 31, 2016, an amount of EUR 3.01 million recognized as short-term financial liabilities represented EUR 2.79 million in cash flow hedging instruments and EUR 0.22 million in hedging instruments recognized at fair value through profit and loss.
As at December 31, 2015, an amount of EUR 2.11 million recognized as short-term financial liabilities represented EUR 1.96 million in cash flow hedging instruments and EUR 0.15 in hedging instruments recognized at fair value through profit and loss.
Some of these financial instruments are designated as hedging instruments as they hedge specific exchange rate risks to which the Group is exposed. Hedge accounting has been applied to these contracts because they are deemed to be effective hedges. Those transactions are highly probable as they are linked to contracts. For these cash flow hedges, movements are recognized directly in equity and released to the income statement to offset the income statement impact of the underlying transactions.
As at December 31, 2016, a cumulative loss of EUR 2.50 million was therefore directly recorded in equity (under "Hedging Reserves"). At December 31, 2015, the accumulated loss amounted to EUR 3.24 million.
As at December 31, the payment schedule for trade payables was as follows:
| (EUR 000) | TOTAL | Due | < 3 months | 4-12 months | 1-5 years | > 5 years |
|---|---|---|---|---|---|---|
| 2015 | 44 887 | 23 675 | 21 212 | 0 | 0 | 0 |
| 2016 | 56 041 | 30 692 | 24 739 | 610 | 0 | 0 |
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Amounts due to customers for contracts in progress (or advances received on contracts in | ||
| progress) | 104 620 | 85 516 |
| Social debts | 11 930 | 14 737 |
| Accrued charges | 2 760 | 2 736 |
| Accrued interest charges | 134 | 247 |
| Deferred income | 6 480 | 7 272 |
| Capital grants | 142 | 830 |
| Non-trade payables | 3 039 | 3 816 |
| Other | 6 228 | 3 690 |
| TOTAL | 135 333 | 118 844 |
At December 31, 2016, the heading "Other" is mainly composed of advances of EUR 1.7 million received from the Walloon Region of Belgium, advance payments from customers of EUR 0.8 million and other amounting to EUR 1.2 million.
At December 31, 2015, the heading "Other" was mainly composed of advances of EUR 1.7 million received from the Walloon Region of Belgium, advance payments from customers of EUR 1.7 million, the accrued liabilities related to the disposal of Group's participation in IBA Molecular for EUR 1.7 million and other amounting to EUR 1.1 million.
Other operating expenses can be broken down as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Legal costs | 140 | 0 |
| Cost of share-based payments | 569 | 549 |
| Depreciation and impairment | 5 232 | 0 |
| One-time bonus granted to employees, except management | 2 004 | 2 269 |
| Long term incentive plan | 2 394 | 1 869 |
| Reorganization expenses | 841 | 2 336 |
| Costs related to the transaction with SK Capital Partners | 324 | 232 |
| Other | 1 382 | 918 |
| TOTAL | 12 886 | 8 173 |
At December 31, 2016, the heading ''other'' mainly includes commitments on Protontherapy and other accelerators projects for EUR 0.6 million and other expenses for EUR 0.3 million.
At December 31, 2015, the depreciation and impairment mainly included the write-offs on other investments for EUR 0.36 million, the write-offs on long term receivables for EUR 4.7 million and the depreciation on fixed assets for EUR 0.14 million.
Other operating income can be broken down as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Reversal of provisions | -6 253 | -21 |
| Negative goodwill related to the 50% acquisition of participation in Striba GmbH | -472 | 0 |
| Realized gain on disposal of the participation in IBA Molecular (Rose Holding SARL) | -38 595 | 0 |
| Other | -100 | -223 |
| TOTAL | -45 420 | -244 |
In 2015, the heading "Reversal of provisions" mainly includes the impact of the reversal of provisions for dismantling following the sale of the site of production of the radiopharmaceutical agents in Fleurus for EUR 5.6 million and the impact of the reversal of provisions related to estimated commitments under the agreement with SK Capital Partners for EUR 0.7 million.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Interest paid on debts | 1 389 | 1 196 |
| Foreign exchange differences | 168 | 466 |
| Change in fair value of derivatives | 5 573 | 3 390 |
| Other | 677 | 728 |
| TOTAL | 7 807 | 5 780 |
As at December 31, 2016, the heading "Other" mainly includes commission and bank charges of EUR 0.71 million.
As at December 31, 2015, the heading "Other" mainly included discount charges of research tax credit of EUR 0.06 million and commission and bank charges of EUR 0.58 million.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Interest received on cash and cash equivalents | -138 | -113 |
| Foreign exchange differences | -1 311 | -719 |
| Change in fair value of derivatives | -8 742 | -2 750 |
| Other | -843 | -745 |
| TOTAL | -11 034 | -4 327 |
As at December 31, 2016, the heading "Other" mainly includes EUR 0.37 million of rebilling of interests charges in relation to a proton therapy project, EUR 0.19 million of interest on long-term receivables and EUR 0.19 million of other interests.
As at December 31, 2015, the heading "Other" mainly included EUR 0.4 million of rebilling of interests charges in relation to a proton therapy project, EUR 0.1 million discount income on the deferred dividend not received in cash related to the asset deal of Pharmalogic PET Services of Montreal Cie, EUR 0.1 million of revaluation of receivables with Cisbio Bioassays SAS and EUR 0.23 million of interest on long-term receivables.
The tax charge/(profit) for the year can be broken down as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Current taxes | 4 036 | 2 869 |
| Deferred taxes | -106 | 490 |
| TOTAL | 3 930 | 3 359 |
The tax charge on IBA's result before taxes differs from the theoretical amount that would have resulted from application of the average applicable tax rates to the profits of the consolidated companies. The analysis is as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Result from continuing operations before taxes | 65 192 | 27 899 |
| Deduct share of profit of companies consolidated using equity method | 122 | -145 |
| Result before tax and before share of associate | 65 314 | 27 754 |
| Tax charge/(profit) calculated based on local tax rates | 22 250 | 9 386 |
| Unrecognized deferred tax assets | 682 | 496 |
| Recognized deferred tax assets | -171 | 0 |
| Tax-exempt transactions and non-deductible expenses | -12 765 | 1 779 |
| Patent deduction (PID) | -6 175 | -8 691 |
| Write-down of previously recognized deferred tax assets | 151 | 605 |
| Utilization of previously unrecognized tax losses | 44 | -101 |
| Utilization of deferred tax assets | 71 | 0 |
| Utilization of deferred tax liabilities | -157 | -115 |
| Booked tax charge/(profit) | 3 930 | 3 359 |
| Theoretical tax rate | 34.1% | 33.8% |
| Effective tax rate | 6.0% | 12.1% |
Given the available tax losses, IBA did not calculate deferred taxes on items credited or charged directly to equity.
As at December 31, 2016, the Group recognized expenses in the United stated of EUR 0.4 million for contribution based plans accounted for using the intrinsic value.
The Group operates in Belgium a contribution based plan funded through payments to an insurance company. The employer guarantees a minimum return on employer contributions resulting in a financial risk to be borne by the Group.
Up to December 31, 2015, the Group had opted to account for these plans using the intrinsic value method.
Following the evolution with respect of minimum guaranteed return, the plans are to be considered as defined benefit plans instead of contribution plans following IAS 19. As a result, the Group has changed its valuation rule and has adopted the projected unit credit method.
The impact on the financial statements is a provision of EUR 3.04 million recorded against reserves in equity in the restated financial position as of January 1, 2016.
Changes in the present value of defined benefit obligations are presented as follows:
| (EUR 000) | January 1, 2016 |
Service cost |
Net interest expenses |
Actuarial change arising from change in financial assumptions |
Contributions by employer |
December 31, 2016 |
|---|---|---|---|---|---|---|
| Defined benefit obligation | -8 426 | -727 | -38 | -425 | 0 | -9 616 |
| Fair value of plan assets | 5 388 | 0 | 10 | 0 | 793 | 6 191 |
| Benefit liability | -3 038 | -727 | -28 | -425 | 793 | -3 425 |
The employee benefit provisions have been calculated on the basis of the following assumptions at January 1, 2016 :
Discount rate: 0.7% or 1.5% based the respective duration of each plan Mortality table: IABE Inflation rate: 1.6% Salary adjustment rate: 2% per annum Retirement age: 60
And at December 31, 2016 : Discount rate: 1.69%, 1.43% or 1.03% based the respective duration of each plan Mortality table: IABE Inflation rate: 1.6% Salary adjustment rate: 1.9% or 1.6% per annum Retirement age: 65
The impact on the benefit liability of the fluctuation of the discount rate is as follow :
| (EUR 000) | December 31, 2016 |
|---|---|
| Discount rate 0.25% increase | -3 329 |
| Discount rate apply | -3 425 |
| Discount rate 0.25% decrease | -3 525 |
As at December 31, 2016, the heading "Other noncash items" mainly includes expenses in connection with employee stock option plans and stock plans (EUR +0.55 million), the net impact of losses and write-downs on inventories (EUR +0.63 million), the impact of research tax credit not received in cash during the year (EUR -2.31 million), the impact of revaluation and increase of long term assets (EUR - 0.31 million), the impact of the margin elimination on the sale of a proton therapy center to an equity accounted company (EUR +1.2 million).
As at December 31, 2016, "Other cash flows from investing activities" mainly includes the drawing on a loan by a company in which the Group holds a participation for EUR 0.3 million.
As at December 31, 2016, "Other cash flows from financing activities" includes new payment of grants in Belgium (EUR +0.12 million), changes in liabilities towards Group employees in connection with the exercise of stock option plans (EUR -0.17 million).
As at December 31, 2015, the heading "Other noncash items" mainly included expenses in connection with employee stock option plans and stock plans (EUR +0.57 million), the net impact of losses and write-downs on inventories (EUR +0.33 million), write off on other investments (EUR +0.35 million), the impact of research tax credit not received in cash during the year (EUR -1.9 million), grant depreciation (EUR -0.2 million), the impact of revaluation of long term assets (EUR -0.3 million), write off on long term receivables (EUR 3.9 million), the negative goodwill resulting from the acquisition of Striba GmbH (EUR - 0.5 million), the impact of the margin elimination on the sale of a proton therapy center to an equity accounted company (EUR +0.57 million).
As at December 31, 2015, "Other cash flows from investing activities" included the distribution of a dividend of EUR 10 million by Rose Holding SARL to its shareholders following the sale of its subsidiary IBA Molecular North America Inc. to Illinois Health and Science (IHS), a non-profit healthcare system.
As at December 31, 2015, "Other cash flows from financing activities" included repayment of grants and advances from the Walloon Region of Belgium (EUR -0.32 million), new payment of grants in Belgium (EUR +0.19 million), changes in liabilities towards Group employees in connection with the exercise of stock option plans (EUR +0.20 million).
The Group is currently not involved in any significant litigation. The potential risks connected with these minor proceedings are deemed to be either groundless or insignificant, and when the risk of payment of potential damages seems actual, are either adequately covered by provisions or insurance policies.
There is no litigation mentioned in the 2015 annual report and still pending in 2016.
The Group has a number of non-cancelable operating leases relating to vehicles, equipment, and office space rental. Total future minimum lease payments under non-cancelable operating leases are as follows:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Due | 17 | 0 |
| One year or less | 5 630 | 6 139 |
| Between 1 and 5 years | 11 630 | 15 106 |
| Over 5 years | 6 676 | 5 604 |
| TOTAL | 23 953 | 26 849 |
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Building | 16 462 | 17 196 |
| Equipment | 1 023 | 1 155 |
| Vehicles | 6 442 | 8 436 |
| Other | 26 | 62 |
| TOTAL | 23 953 | 26 849 |
The Group operating leases were concluded under the following conditions:
Total operating lease payments included in the income statement:
| Building 2 840 2 912 Equipment 331 370 Vehicles 2 408 2 821 Other 9 48 TOTAL 5 588 6 151 |
(EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|---|
Operating lease charges are recognized in the income statement in the "Cost of sales and services", "Sales and marketing expenses", "General and administrative expenses", and "Research and development expenses" line items.
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| One year or less | 0 | 0 |
| Between 1 and 5 years | 0 | 0 |
| Over 5 years | 0 | 0 |
| TOTAL | 0 | 0 |
As at December 31, 2016, IBA held financial guarantees for EUR 67.0 million given by Group's business units as security for debts or commitments, mainly in advance payment guarantees (EUR 107.3 million December 31, 2015).
The Group is paying financial interest at a fixed rate on its financial guarantees. The interest depends on the duration of the guarantee. Therefore, the Group is not exposed to financial credit risk.
A list of subsidiaries and equity-accounted companies is provided in Note 5.
The main transactions completed with affiliated companies (companies using the equity accounting method) are the following:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| ASSETS | ||
| Receivables | ||
| Long-term receivables | 747 | 793 |
| Trade and other receivables | 2 497 | 290 |
| Impairment of receivables | -730 | 0 |
| TOTAL RECEIVABLES | 2 514 | 1 083 |
| LIABILITIES | ||
| Payables | ||
| Trade and other payables | 1 452 | 0 |
| TOTAL PAYABLES | 1 452 | 0 |
| INCOME STATEMENT | ||
| Sales | 5 138 | 6 809 |
| Costs | -1 451 | -3 206 |
| Financial income | 814 | 95 |
| Financial expense | -19 | 0 |
| Other operating income | 0 | 0 |
| Other operating expense | -2 000 | 0 |
| TOTAL INCOME STATEMENT | 2 482 | 3 698 |
The following table shows IBA shareholders at December 31, 2016:
| Number of shares | % | |
|---|---|---|
| Belgian Anchorage SCRL | 6 204 668 | 20.85% |
| IBA Investments SCRL | 610 852 2.10% 610 852 |
2.05% |
| IBA SA | 63 519 0.22%6 63 519 |
0.21% |
| UCL ASBL | 639 668 426 885 |
1.43% |
| Sopartec SA | 193 801 | 0.65% |
| Institut des Radioéléments FUP | 1 423 271 | 4.78% |
| Société Régionale d'Investissement de Wallonie (S.R.I.W.) | 704 491 | 2.37% |
| Société Fédérale de Participation et d'investissement (S.F.P.I.) | 62 700 | 0.21% |
| Capfi Delen Asset Management NV | 1 207 375 | 4.06% |
| Public | 18 866 834 | 63.39% |
| TOTAL | 29 764 396 | 100.00% |
The main transactions completed with the shareholders are the following:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| ASSETS | ||
| Receivables | ||
| TOTAL RECEIVABLES | 0 | 0 |
| LIABILITIES | ||
| Payables | ||
| Bank borrowings | 15 000 | 15 000 |
| Trade and other payables | 84 | 115 |
| TOTAL PAYABLES | 15 084 | 15 115 |
| INCOME STATEMENT | ||
| Financial expense | -507 | -720 |
| TOTAL INCOME STATEMENT | -507 | -720 |
To the best of the Company's knowledge, there were no other relationships or special agreements among the shareholders at December 31, 2016.
See remuneration report on page 58.
ANNUAL REPORT 2016 / 139
Ernst & Young Réviseurs d'Entreprises SCCRL, auditors of the statutory accounts of IBA SA and auditors of the consolidated accounts of IBA, provided the following services during the year:
| (EUR 000) | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Remuneration for statutory audits and audit of consolidated accounts | 297 | 341 |
| Other services | 29 | 2 |
| TOTAL | 326 | 343 |
On February 17, 2017, IBA announced that it has been selected as the preferred vendor by four leading universities of Brussels (ULB), Liège (Ulg), Mons (UMons) and Namur (UNamur), alongside the Wallonia Region government, to install a Proteus®ONE solution, IBA's single-room compact proton therapy system, in Charleroi, Belgium. IBA was selected following a comprehensive European public tender process and expects to sign a final contract in the coming weeks, after expiration of the applicable waiting period.
The new center will be dedicated primarily to the research and development of new proton therapy applications and techniques in order to extend the range of proton therapy used in the treatment of cancer. The center, which will also treat patients, will be located in Charleroi and is expected to be operational in 2020. The Wallonia Region will invest a total of EUR 47 million in this research project, which
will include the IBA technology, research program, maintenance contract as well as related equipment.
On February 23, 2017, IBA announced that it has signed a contract with Quirónsalud, Spain's leading hospital group and part of Germany's Helios Group, to install a Proteus®ONE compact proton therapy solution in Madrid.
The contract covers delivery of a Proteus®ONE solution, including latest generation Pencil Beam Scanning (PBS), isocenter volumetric imaging (Cone Beam CT) capabilities and a long-term maintenance agreement. The hospital group will also benefit from Penn Medicine and IBA's world leading proton therapy clinical education program. The hospital will be ready to start treating patients by 2019. The typical end-user price for a Proteus®ONE system with a maintenance contract is between EUR 35 and 40 million.
Net basic earnings per share are calculated by dividing the net profit attributable to 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 | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Earnings attributable to parent equity holders (EUR 000) | 61 189 | 24 440 |
| Weighted average number of ordinary shares | 28 171 776 | 28 748 838 |
| Net earnings per share from continuing and discontinued (EUR per share) | 2.172 | 0.850 |
| Earnings from continuing operations attributable to parent equity holders | 61 262 | 24 540 |
| (EUR 000) | ||
| Weighted average number of ordinary shares | 28 171 776 | 28 748 838 |
| Basic earnings per share from continuing operations (EUR per share) | 2.175 | 0.854 |
| Earnings from operations held for sale attributable to parent equity holders | -73 | -100 |
| (EUR 000) | ||
| Weighted average number of ordinary shares | 28 171 776 | 28 748 838 |
| Basic earnings per share from discontinued operations (EUR per share) | -0.003 | -0.004 |
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 2015 and 2016, 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 | December 31, 2015 | December 31, 2016 |
|---|---|---|
| Weighted average number of ordinary shares | 28 171 776 | 28 748 838 |
| Weighted average number of stock options | 1 222 312 | 598 003 |
| Average share price over period | 25.21 | 39.34 |
| Dilution effect from weighted number of stock options | 1 044 781 | 740 966 |
| Weighted average number of ordinary shares for diluted earnings per share | 29 216 557 | 29 489 804 |
| Earnings attributable to parent equity holders (EUR 000) | 61 189 | 24 440 |
| Diluted earnings per share from continuing and discontinued operations | 2.094 | 0.829 |
| (EUR per share) | ||
| Earnings from continuing operations attributable to parent equity holders | 61 262 | 24 540 |
| (EUR 000) | ||
| Diluted earnings per share from continuing operations (EUR per share) | 2.097 | 0.832 |
| Earnings from operations held for sale attributable to parent equity holders | -73 | -100 |
| (EUR 000) | ||
| Diluted earnings per share from discontinued operations (EUR per share) | -0.003 | -0.003 |
(*) 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).
In accordance with article 105 of the Belgian Company Code, the following statements represent a condensed version of the annual financial statements. The full text is available on request from the headquarters of the Company and will be filed with the National Bank of Belgium. This condensed version does not contain all of the appendixes or the auditor's report, who expressed an unqualified opinion.
| ASSETS (EUR 000) | 2014 | 2015 | 2016 |
|---|---|---|---|
| FIXED ASSETS | 93 441 | 105 397 | 118 802 |
| Formation expenses | 0 | 0 | 0 |
| Intangible fixed assets | 29 023 | 33 295 | 35 715 |
| Tangible fixed assets | 6 477 | 7 230 | 15 597 |
| Land and buildings | 471 | 926 | 3 286 |
| Plant, machinery, and equipment | 2 616 | 2 583 | 4 262 |
| Furniture and vehicles | 456 | 921 | 1 750 |
| Leases and similar rights | 2 690 | 2 524 | 2 358 |
| Assets under construction and advance payments | 244 | 276 | 3 941 |
| Financial assets | 57 941 | 64 872 | 67 490 |
| Affiliated companies | 57 176 | 57 371 | 58 427 |
| Other investments | 0 | 0 | 0 |
| Others financial assets | 765 | 7 501 | 9 063 |
| CURRENT ASSETS | 509 956 | 272 130 | 306 621 |
| Accounts receivable in more than one year | 16 565 | 10 737 | 12 126 |
| Inventories and contracts in progress | 351 642 | 88 296 | 119 549 |
| Inventories | 40 089 | 42 952 | 49 255 |
| Contracts in progress | 311 552 | 45 344 | 70 294 |
| Accounts receivable within one year | 115 110 | 97 252 | 108 563 |
| Trade receivables | 71 193 | 66 067 | 95 110 |
| Other receivables | 43 917 | 31 185 | 13 453 |
| Investments | 13 716 | 36 259 | 20 647 |
| Cash at bank and in hand | 9 022 | 33 732 | 32 194 |
| Deferred charges and accrued income | 3 901 | 5 854 | 13 542 |
| TOTAL ASSETS | 603 397 | 377 527 | 425 423 |
| LIABILITIES AND EQUITY (EUR 000) | 2014 | 2015 | 2016 |
|---|---|---|---|
| SHAREHOLDERS' EQUITY | 118 602 | 106 443 | 129 417 |
| Capital stock | 39 852 | 40 864 | 41 776 |
| Capital surplus | 32 431 | 37 329 | 40 618 |
| Reserves | 4 878 | 4 879 | 4 960 |
| Legal reserve | 3 985 | 4 087 | 4 177 |
| Reserves not available for distribution | 690 | 589 | 580 |
| Untaxed reserves | 203 | 203 | 203 |
| Retained earnings | 40 840 | 23 243 | 41 233 |
| Capital grants | 601 | 128 | 830 |
| PROVISIONS AND DEFERRED TAXES | 15 426 | 10 513 | 10 292 |
| LIABILITIES | 469 369 | 260 571 | 285 714 |
| Accounts payable in more than one year | 188 642 | 112 594 | 117 722 |
| Financial debts | 31 674 | 15 220 | 27 750 |
| Advances received on contracts in progress | 145 958 | 85 741 | 78 382 |
| Other accounts payable | 11 010 | 11 633 | 11 590 |
| Accounts payable within one year | 276 958 | 144 780 | 156 762 |
| Current portion of accounts payable in more than one year | 7 293 | 18 176 | 47 625 |
| Financial debts | 0 | 4 052 | 246 |
| Trade debts | 54 452 | 56 535 | 85 216 |
| Advances received on contracts in progress | 202 940 | 16 522 | 3 823 |
| Current tax and payroll liabilities | 6 409 | 7 263 | 10 309 |
| Other accounts payable | 5 864 | 42 232 | 9 543 |
| Accrued charges and deferred income | 3 769 | 3 197 | 11 230 |
| TOTAL LIABILITIES | 603 397 | 377 527 | 425 423 |
| INCOME STATEMENT (EUR 000) | 2014 | 2015 | 2016 |
|---|---|---|---|
| Operating income | 211 002 | 247 729 | 322 715 |
| Operating expenses (-) | -178 459 | -222 800 | -293 250 |
| Raw materials, consumables, and goods for resale | -51 233 | -65 125 | -87 327 |
| Services and other goods | -67 818 | -81 589 | -108 369 |
| Salaries, social security, and pensions | -42 949 | -49 511 | -59 220 |
| Depreciation and write-offs on fixed assets | -16 181 | -25 714 | -32 699 |
| Increase/(Decrease) in write-downs on inventories, work in progress, and trade debtors |
-1 692 | -2 236 | -1 370 |
| Provisions for liabilities and charges | 14 433 | 4 913 | 221 |
| Other operating expenses | -13 018 | -3 538 | -4 486 |
| Operating profit/loss) | 32 | 24 929 | 29 465 |
| 543 | |||
| Financial income | 27 771 | 13 134 | 7 375 |
| Income from financial assets | 18 952 | 0 | 0 |
| Income from current assets | 1 921 | 1 553 | 984 |
| Other financial income | 6 898 | 11 581 | 6 391 |
| Financial expenses (-) | -8 471 | -13 967 | -9 111 |
| Interest expense | -2 589 | -1 896 | -1 595 |
| Amounts written off on current assets other than inventories, work in progress and trade debtors - increase (decrease) |
0 | 0 | 0 |
| Other financial charges | -5 882 | -12 071 | -7 516 |
| Profit/(Loss) on ordinary activities before taxes | 51 843 | 24 096 | 27 729 |
| Extraordinary income (+) | 66 | 225 | 63 |
| Realized gain on fixed assets | 0 | 0 | 0 |
| Other extraordinary income | 66 | 225 | 63 |
| Extraordinary expense (-) | -1 899 | -861 | -939 |
| Extraordinary depreciation and write-offs on fixed assets | -211 | -20 | 0 |
| Impairment on financial assets | -71 | -269 | 0 |
| Provisions for extraordinary charges and risk | 0 | 0 | 0 |
| Other extraordinary expenses | -1 617 | -572 | -939 |
| Profit/(loss) for the period before taxes | 50 010 | 23 460 | 26 853 |
| Income taxes (-) (+) | -230 | -106 | -150 |
| Profit/(loss) for the period | 49 780 | 23 354 | 26 703 |
| Transfers to tax free reserves (-) | |||
| Profit/(loss) for the period available for appropriation | 49 780 | 23 354 | 26 703 |
| APPROPRIATION OF RESULTS (EUR 000) | 2014 | 2015 | 2016 |
|---|---|---|---|
| Profit/(Loss) to be appropriated | 47 897 | 64 194 | 49 946 |
| Profit/(loss) for the period available for appropriation | 49 780 | 23 354 | 26 703 |
| Profit/(Loss) carried forward | -1 883 | 40 840 | 23 243 |
| Transfers to capital and reserves | 0 | 100 | 9 |
| On capital stock and capital surplus | 0 | 0 | 0 |
| From reserves | 0 | 100 | 10 |
| Appropriations to capital and reserves | 2 199 | 101 | 91 |
| To capital stock and capital surplus | 0 | 0 | 0 |
| To legal reserve | 2 099 | 101 | 91 |
| To other reserves | 100 | 0 | 0 |
| Profit/(Loss) to be carried forward | 45 698 | 64 193 | 49 864 |
| Profit to distribute | 40 840 | 23 243 | 49 864 |
| Dividends | -4 858 | -40 950 | -8 632 |
| 2015 | 2016 | |||
|---|---|---|---|---|
| STATEMENT OF CAPITAL | Amount | Number | Amount | Number |
| (EUR 000) | (EUR 000) | of shares | (EUR 000) | of shares |
| Capital | ||||
| 1. Issued capital |
||||
| At the end of the previous financial year | 39 852 | 40 864 | ||
| Changes during the financial year | 1 012 | 721 263 | 911 | 649 329 |
| At the end of the current financial year | 40 864 | 41 775 | ||
| 2. Structure of the capital |
||||
| 2.1. Categories of shares |
||||
| Ordinary shares without designation of face value | 22 863 | 16 412 578 | 23 774 | 17 061 907 |
| Ordinary shares without designation of face value with WPR strips |
18 001 | 12 702 489 | 18 001 | 12 702 489 |
| 2.2. Registered or bearer shares |
||||
| Registered shares | 7 555 920 | 7 957 746 | ||
| Bearer shares | 21 559 147 | 21 806 650 | ||
| Own shares held by | ||||
| The Company itself | 90 | 63 519 | 90 | 63 519 |
| Its subsidiaries | 858 | 610 852 | 858 | 610 852 |
| Stock issue commitments | ||||
| Following exercise of share options | ||||
| Number of outstanding share options | 1 272 312 | 598 003 | ||
| Amount of capital to be issued | 1 786 | 839 | ||
| Maximum number of shares to be issued | 1 272 312 | 598 003 | ||
| Amount of non-issued authorized capital | 23 314 | 23 314 |
Ion Beam Applications SA, abbreviated IBA SA.
Chemin du Cyclotron, 3; B-1348 Louvain-la-Neuve, Belgium; enterprise number VAT BE0428.750.985, RPM Nivelles.
IBA was incorporated for an indefinite period on March 28, 1986 as a "Société Anonyme" under Belgian law. IBA is a listed corporation pursuant to Article 4 of the Belgian Company Code and a Company having issued equity to the public pursuant to Article 438 of the Code.
The purpose of the Company is to engage in research and development and to acquire intellectual property rights with a view to the exploitation, fabrication, and commercialization of applications and equipments in the field of applied physics. It may engage in any and all securities, real-estate, financial, commercial, and industrial operations that are directly or indirectly related to its corporate purpose. It may acquire an interest, by contribution, merger, purchase of shares, or any other means, in companies, partnerships, or corporations whose purpose is similar, analogous, related, or useful to the achievement of its corporate purpose in whole or in part.
The Company's statutory and consolidated statements are filed with the National Bank of Belgium. Copies of the Company's consolidated articles of incorporation, its annual and semi-annual reports, and all other shareholder documentation may be obtained at the Company's website (www.ibaworldwide.com) or by shareholder request to the Company's registered office.
At December 31, 2016, IBA capital amounted to EUR 41 775 555.37 and was represented by 29 764 396 fully paid up shares with no par value.
In October 2007, the Company issued 450 000 stock options for Group employees ("2007 Plan"). They allow the beneficiary to purchase a new share at EUR 19.94 (EUR 20.22 for the determined persons) following certain procedures during specific periods between December 1, 2010 and September 30, 2013 (plan of which the exercise periods were extended until September 30, 2016).
At December 31, 2015, there were 39 219 outstanding stock options of this plan.The following exercises and cancelations of these stock options were recorded by notarial deed in 2016: 27 649 stock options exercised on April 22, 2016, 2 543 stock options exercised on September 20, 2016, 8 812 stocks options exercised and 215 stock options cancelled on December 15, 2016.
At December 31, 2015, there were thus no outstanding stock options on this plan.
In September 2010, the Company issued 900 000 stock options for Group employees ("2010 Plan"). They allow the beneficiary to purchase a new share at EUR 7.80 following certain procedures during specific periods between January 1, 2014 and September 30, 2016.
At December 31, 2015, there were 143 979 outstanding stock options of this plan.
The following exercises and cancelations of these stock options were recorded by notarial deed in 2016: 97 925 stock options exercised on April 22, 2016, 23 174 stock options exercised on September 20, 2016, 21 407 stocks options exercised and 1 473 stock options cancelled on December 15, 2016.
At December 31, 2015, there were thus no outstanding stock options on this plan.
In September 2011, the Company issued 1 487 000 stock options for Group employees ("2011 Plan"). They allow the beneficiary to purchase a new share at EUR 5.03 (EUR 5.42 for determined persons) following certain procedures during specific periods between January 1, 2015 and September 30, 2017.
At December 31, 2015, there were 355 127 outstanding stock options of this plan.
The following exercises and cancelations of these stock options were recorded by notarial deed in 2016: 124 049 stock options exercised on April 22, 2016, 7 586 stock options exercised on September 20, 2016, 114 719 stocks options exercised and 8 636 stock options cancelled on December 15, 2016.
At December 31, 2015, there were thus 100 137 outstanding stock options of this plan.
In September 2012, the Company issued 870 000 stock options for Group employees ("2012 Plan"). They allow the beneficiary to purchase a new share at EUR 4.78 following certain procedures during specific periods between January 1, 2016 and September 30, 2018.
At December 31, 2015, there were 487 487 outstanding stock options of this plan.
The following exercises and cancelations of these stock options were recorded by notarial deed in 2016: 159 194 stock options exercised on April 22, 2016, 28 516 stock options exercised on September 20, 2016, 33 755 stocks options exercised and 4 656 stock options cancelled on December 15, 2016.
At December 31, 2016, there were thus 261 366 outstanding stock options of this plan.
In June 2014, the Company issued 250 000 stock options for the Group management ("2014 Plan"). They allow the beneficiary to purchase a new share at EUR 11.52 following certain procedures during specific periods between January 1, 2019 and June 30, 2024.
At December 31, 2015, there were 196 500 outstanding stock options of this plan.
The following cancelations of these stock options were recorded by notarial deed in 2016: 10 000 stock options cancelled on December 15, 2016.
At December 31, 2016, there were thus 186 500 outstanding stock options of this plan.
In December 2015, the Company issued 50 000 stock options for the Group management ("2015 Plan"). They allow the beneficiary to purchase a new share at EUR 31.84 following certain procedures between January 1, 2019 and June 30, 2024.
Neither cancellations nor exercises of these stock options were recorded in 2016.
At December 31, 2016, there were thus 50 000 outstanding stock options of this plan. At December 31, 2016, none of these options were exercisable.
As at December 31, 2016, 598 003 options were issued and outstanding.
Please note that IBA decided on August 26, 2015 to render the current SOPs exercisable on a continued period (outside of anti-insider dealing black out period and outside one additional technical black out period) as from October 1, 2015.
All stock options may also be exercised in the event of a takeover bid for IBA or of an increase in shareholders' equity with preemptive rights.
At December 31, 2016, the authorized capital amounted to EUR 23 313 892.64.
IBA is careful to patent all aspects of its technology for which a patent provides a commercial advantage.
In addition, the Company has maintained the secrecy of a significant portion of its know-how that is not patentable or for which the Company believes secrecy is more effective than publication in a patent application. More fundamentally, the Company believes that the best way to protect itself from its competitors is not by patenting its inventions, but by maintaining its technological lead.
IBA also licenses patents from third parties and pays royalties on them.
IBA has licensing agreements involving various aspects of its technology. Listing and explaining the nature and terms of these licensing agreements is beyond the scope of this annual report. These agreements cover, for example, certain aspects of its particle accelerator technology and a number of components of its proton therapy equipment.
| Number of new | Total number of | |||
|---|---|---|---|---|
| OPERATION | shares | shares | Variation (∆) | Amount |
| 04/27/2012 Exercise of options under 2004 Plan | 500 | 27 365 528 | 702.15 | 38 408 427.14 |
| 08/10/2012 Exercise of options under 2002 Plan | 8 500 | 27 374 028 | 11 829.45 | 38 420 256.59 |
| 02/26/2013 Exercise of options under extended 2004 Plan | 10 350 | 27 384 378 | 14 534.51 | 38 434 791.10 |
| 05/07/2013 Exercise of options under extended 2004 Plan | 52 701 | 27 437 079 | 74 008.01 | 38 508 799.11 |
| 07/11/2013 ESP Plan (2013) | 10 231 | 27 447 310 | 14 359.21 | 38 523 158.32 |
| 07/11/2013 Exercise of options under extended 2004 Plan | 77 619 | 27 524 929 | 109 000.36 | 38 632 158.68 |
| 25/10/2013 Exercise of options under extended 2004 Plan | 110 510 | 27 635 439 | 155 189.19 | 38 787 347.87 |
| 28/02/2014 Exercise of options under extended 2005 plan | 32 197 | 27 667 636 | 45 211.03 | 38 832 558.90 |
| 29/04/2014 Exercise of options under extended 2005 plan | 7 890 | 27 675 526 | 11 079.14 | 38 843 638.04 |
| 29/04/2014 Exercise of options under 2009 plan BE | 221 | 27 675 747 | 310.22 | 38 843 948.26 |
| 29/04/2014 Exercise of options under 2010 BE plan | 208 | 27 675 955 | 291.97 | 38 844 240.23 |
| 27/06/2014 capital increase in favor of S.R.I.W./S.F.P.I. | 520 832 | 28 196 787 | 730 987.71 | 39 575 227.94 |
| 25/07/2014 Exercise of options under 2009 plan | 78 679 | 28 275 466 | 110 441.71 | 39 685 669.65 |
| 25/07/2014 Exercise of options under 2010 plan | 63 535 | 28 339 001 | 89 184.08 | 39 774 853.73 |
| 06/11/2014 Exercise of options under 2009 plan | 28 494 | 28 367 495 | 39 997.03 | 39 814 850.76 |
| 06/11/2014 Exercise of options under 2010 plan | 26 309 | 28 393 804 | 36 929.94 | 39 851 780.70 |
| 26/02/2015 Exercise of options under 2006 plan | 38.287 | 28 432 091 | 53 751.12 | 39 905 531.82 |
| 26/02/2015 Exercise of options under 2006 plan (det pers) | 800 | 28 432 891 | 1 123.12 | 39 906 654.94 |
| 26/02/2015 Exercise of options under 2009 plan | 45.237 | 28 478 128 | 63 499.18 | 39 970 154.12 |
| 26/02/2015 Exercise of options under 2010 plan | 49.528 | 28 527 656 | 69 522.45 | 40 039 676.57 |
| 26/02/2015 Exercise of options under 2011 plan | 99.408 | 28 627 064 | 139 519.13 | 40 179 195.70 |
| 26/02/2015 Exercise of options under 2011 plan (det pers) | 26.456 | 28 653 520 | 37 131.00 | 40 216 326.69 |
| 27/05/2015 Exercise of options under extended 2006 plan (det pers) | 3.000 | 28 656 520 | 4 211.70 | 40 220 538.39 |
| 27/05/2015 Exercise of options under extended 2006 plan | 34 205 | 28 690 725 | 48 020.40 | 40 268 558.79 |
| 27/05/2015 Exercise of options under extended 2007 plan | 13 119 | 28 703 844 | 18 415.14 | 40 286 973.93 |
| 27/05/2015 Exercise of options under 2009 plan | 141 435 | 28 845 279 | 198 532.31 | 40 485 506.24 |
| 27/05/2015 Exercise of options under 2010 plan | 65 579 | 28 910 858 | 92 053.24 | 40 577 559.48 |
| 27/05/2015 Exercise of options under 2011 plan | 72 340 | 28 983 198 | 101 529.19 | 40 679 088.67 |
| 27/05/2015 Exercise of options under 2011 plan (det pers) | 34 232 | 29 017 430 | 48 044.61 | 40 727 133.28 |
| 31/08/2015 Exercise of options under extended 2006 plan (det pers) | 3 000 | 29 020 430 | 4 211.70 | 40 731 344.98 |
| 31/08/2015 Exercise of options under extended 2006 plan | 6 500 | 29 026 930 | 9 125.35 | 40 740 470.33 |
| 31/08/2015 Exercise of options under extended 2007 plan (det pers) | 3 000 | 29 029 930 | 4 211.10 | 40 744 681.43 |
| 31/08/2015 Exercise of options under extended 2007 plan | 5 349 | 29 035 279 | 7 508.39 | 40 752 189.82 |
| 31/08/2015 Exercise of options under 2009 plan | 19 456 | 29 054 735 | 27 310.39 | 40 779 500.21 |
| 31/08/2015 Exercise of options under 2010 plan | 5 507 | 29 060 242 | 7 730.18 | 40 787 230.38 |
| 31/08/2015 Exercise of options under 2011 plan | 14 435 | 29 074 677 | 20 259.52 | 40 807 489.91 |
| 18/12/2015 Exercise of options under extended 2006 plan | 8 750 | 29 083 427 | 12 284.13 | 40 819 774.04 |
| 18/12/2015 Exercise of options under extended 2007 plan | 3 454 | 29 086 881 | 4 848.38 | 40 824 622.41 |
| 18/12/2015 Exercise of options under 2009 plan | 20 328 | 29 107 209 | 28 534.41 | 40 853 156.83 |
| 18/12/2015 Exercise of options under 2010 plan | 1 441 | 29 108 650 | 2 022.73 | 40 855 179.56 |
| 18/12/2015 Exercise of options under 2011 plan | 6 417 | 29 115 067 | 9 006.26 | 40 864 185.82 |
| 22/04/2016 Exercise of options under 2007 plan (det pers prolonged) | 3 993 | 29 119 060 | 5 604.97 | 40 869 790. 79 |
| 22/04/2016 Exercise of options under 2007 plan (prolonged) | 23 656 | 29 142 716 | 33 205.93 | 40 902 996.72 |
| 22/04/2016 Exercise of options under 2010 plan | 97 925 | 29 240 641 | 137 457.32 | 41 040 454.04 |
| 22/04/2016 Exercise of options under 2011 plan (det pers) | 14 577 | 29 255 218 | 20 458.82 | 41 060 912.86 |
| 22/04/2016 Exercise of options under 2011 plan (empl) | 109 472 | 29 364 690 | 153 643.95 | 41 214 556.81 |
| 22/04/2016 Exercise of options under 2012 plan | 159 194 | 29 523 884 | 223 428.78 | 41 437 985.59 |
| 20/09/2016 Exercise of options under 2007 plan (det pers prolonged) | 664 | 29 524 548 | 932.06 | 41 438 917.65 |
| 20/09/2016 Exercise of options under 2007 plan (prolonged) | 1 879 | 29 526 427 | 2 637.55 | 41 441 555.20 |
| 20/09/2016 Exercise of options under 2010 plan | 23 174 | 29 549 601 | 32 529.34 | 41 474 084.54 |
| 20/09/2016 Exercise of options under 2011 plan (det pers) | 2 000 | 29 551 601 | 2 807.00 | 41 476 891.54 |
| 20/09/2016 Exercise of options under 2011 plan (empl) | 5 586 | 29 557 187 | 7 839.95 | 41 484 731.49 |
| 20/09/2016 Exercise of options under 2012 plan | 28 516 | 29 585 703 | 40 022.21 | 41 524 753.70 |
| 15/12/2016 Exercise of options under 2007 plan | 8 812 | 29 594 515 | 12 369.40 | 41 537 123.10 |
| 15/12/2016 Exercise of options under 2010 plan | 21 407 | 29 615 922 | 30 049.01 | 41 567 172.11 |
| 15/12/2016 Exercise of options under 2011 plan (det pers) | 14.639 | 29 630 561 | 20 545.84 | 41 587 717.95 |
| 15/12/2016 Exercise of options under 2011 plan (empl) | 100.080 | 29 730 641 | 140 462.28 | 41 728 180.23 |
| 15/12/2016 Exercise of options under 2012 plan | 33.755 | 29 764 396 | 47 375.14 | 41 775 555.37 |
IBA stock is quoted on the Euronext Brussels continuous market (Compartment B since January 17, 2013). It was introduced on the Stock Exchange on June 22, 1998 at a price of EUR 11.90 (adjusted for a 5 to 1 split in June, 1999).
IBA stock closed at EUR 41.64 on December 31, 2016.
The total number of outstanding stock options as at December 31, 2016 amounts to 598 003. There are no convertible bonds or bonds with warrants outstanding as at 31 December 2016.
| Situation as at | December 31, 2016 Non diluted |
December 31, 2016 Fully diluted |
||
|---|---|---|---|---|
| Entity | Number of shares | % | Number of shares | % |
| Belgian Anchorage SCRL (1) | 6 204 668 | 20.85% | 6 204 668 | 20.44% |
| IBA Investments SCRL (2) | 610 852 | 2.05% | 610 852 | 2.01% |
| IBA SA | 63 519 | 0.21% | 63 519 | 0.21% |
| UCL ASBL | 426 885 | 1.43% | 426 885 | 1.41% |
| Sopartec SA | 193 801 | 0.65% | 193 801 | 0.64% |
| SRIW | 704 491 | 2.37% | 704 491 | 2.32% |
| SFPI | 62 700 | 0.21% | 62 700 | 0.21% |
| Institut des Radioéléments FUP | 1 423 271 | 4.78% | 1 423 271 | 4.69% |
| Subtotal | 9 690 187 | 32.56% | 9 690 187 | 31.92% |
| Public (including Capfi Delen Asset Management N.V.) | 20 074 209 | 67.45% | 20 672 212 | 68.08% |
| Total | 29 764 396 | 100.00% | 30 362 399 | 100.00% |
(1) Belgian Anchorage is a company established and wholly owned by IBA Management and a number of IBA employees.
(2) IBA Investments is a second-tier subsidiary of IBA SA.
Interim statements, first quarter 2017 May 10, 2017 2016 Annual Shareholders' Meeting May 10, 2017 Publication of the half-yearly results as of June 30, 2017 August 24, 2017 Interim statements, third quarter 2017 November 16, 2017
Thomas Ralet Vice-President Corporate Communication Tel.: +32 10 47 58 90 E-mail: [email protected]
Version française disponible sur demande.
Chemin du Cyclotron, 3 1348 Louvain-la-Neuve, Belgique Tel.: +32 10 47 58 11 - Fax: +32 10 47 58 10 RPM Nivelles - TVA: BE 428.750.985 E-mail: [email protected] Website: www.iba-worldwide.com
E.R.: IBA SA, Chemin du Cyclotron, 3 1348 Louvain-la-Neuve, Belgique.
Design & Production: www.thecrewcommunication.com
This report is printed on FSC certified wood-free coated paper.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.