IBA ANNUAL REPORT 2000(
The IBA 2000 Annual Report consists of two parts. On April 20, 2001, the Belgian Banking and Finance Commission authorized IBA to use its Annual Report as the documentof reference for any public share offering it may conduct via the dissociated information procedure, based on Belgian Royal Decree 185 of July 9, 1935, until publication of its nextReport. Within the framework of this procedure, an operational note should be added to the present Report so that it constitutes a prospectus in compliance with article 29 of theaforementioned Royal Decree. Said prospectus must be submitted for approval to the Banking and Finance Commission in compliance with the provisions of article 29-ter § 1,subsection 1, of the aforementioned Royal Decree.
This document is an English translation of the document of reference established in French. Only the document of reference in French is the authentic document. The Englishtranslation has been validated by IBA.
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The year 2000 was a year of integration and con-
solidation for IBA, a year in which solid founda-
tions were laid in order to ensure strong growth in
the future.
Indeed, the year 2000 was characterized by 3 major
elements:
• the construction of an integrated Group worldwide,
• sustained growth compared with 1999, and
• continued investments to secure even more prof-
itable growth in the future.
Successful integration
In the last few years, IBA has experienced tremen-
dous growth due to the acquisition of seven differ-
ent companies, all offering technologies and services
reinforcing or complementary to its core business.
But all these different companies and businesses
needed to be integrated. For that very reason, a new
management and management structure have been
put into place in 2000 in many parts of the organi-
zation, and rationalization and optimization
efforts have been carried out to maximize IBA’s
competitive advantage. The IBA mission and val-
ues have been shared among all Group members.
Today, we are fully equipped to move forward
together in the same direction, aiming for ambi-
tious, selective and profitable growth.
Solid growth
The 2000 financial results show for the first time in
a full year the integration of the companies
acquired by IBA in 1999.
The Group’s consolidated sales figure shows
growth of 67% increasing to 236 million EUR. The
operating result (EBITA) before amortization of
goodwill stands at EUR 36.6 million, showing an
increase of 27% compared with 28.7 million EUR
in 1999. As for the net result Group share, this has
increased by 106% and the net current result per
share has risen by 13% to 0.95 EUR.
Also, and most importantly, the Group’s financial
structure has been considerably reinforced by the
capital increase in January 2000, which successfully
raised 170 million EUR and undeniably con-
tributed to growth in 2000. With a gearing ratio of
35% at December 31, 2000, IBA is in an excellent
position to face the future and achieve its ambition
of continuous growth.
We would like to take this opportunity to thank in
particular all our shareholders for their support,
without which this growth would not have been
possible. Our thanks also go to all IBA employees
everywhere who are committed to IBA’s mission
and values and have contributed to achieving this
growth in 2000.
2 IBA 2000
LETTER FROM THE CHAIRMAN OF THE BOARD
AND THE CHIEF EXECUTIVE OFFICER
(
Dear Shareholders,
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3 IBA 2000
When seen in the light of the difficulties experi-
enced by the financial markets in 2000, these
results inevitably inspire confidence in IBA’s firm
foundations and future consolidation.
Investments for the future
In 2000, investments totaled 66 million EUR. Of
these, 16% were used to extend the medical steriliza-
tion business in Europe and Thailand, 19% were
allotted to developments in food, to establishing new
premises for Analytical Labs in the USA and to
starting a new processing facility for Advanced
Materials, 20% were used to develop radioisotope
production centers in Europe, 22% for R&D in the
area of Proton Therapy and 23 % were used for main-
tenance and renewal of existing facilities and equip-
ment, to a large extent for ensuring cobalt supplies.
Overall perspectives 2001
The objective of IBA in the year 2001 is to improve
its profitability while continuing to pursue the
optimization measures determined and undertaken
during 2000.
The year 2001 will also be a decisive year in the
field of proton therapy. We expect to see IBA’s
efforts in this area come to fruition by obtaining
FDA approval in the USA for its cancer radiation
therapy system at the Massachusetts General
Hospital, Boston. In addition to this, IBA intends
to sell a Proton Therapy system before the end of
the year.
Other focal points for IBA in 2001: integration of
the acquisition of Eastern Isotopes Inc. and devel-
opment of the production and distribution of
radioisotopes aiming for strong growth in the USA
PET markets over the next few years. Such activi-
ties together with continued efforts to establish
IBA’s leadership position in markets offering long-
term growth opportunities will require continuous
investments and thus mobilization of the Group’s
financial resources before they can contribute sig-
nificantly to the growth in profits.
With more than 1300 employees at 49 different
sites in 12 countries on 3 continents, IBA is today
an established world leader in both its industrial
markets (sterilization & ionization) and medical
markets (advanced radiotherapy and radioisotopes).
By leveraging its unique expertise in particle accel-
erator technology, advanced physics and chemistry,
IBA continues to fulfil its worldwide mission, that
of providing high-value innovative solutions in the
areas of health and well-being.
PHILIPPE
DE WOOT
Chairman of the Board of Directors(right)
JEAN-CLAUDE
DELOBEL
Chief Executive Officer(left)
Philippe de Woot Jean-Claude Delobel
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IBA is a world leader in the areas of industrial
Sterilization & Ionization, Advanced Radiotherapy
and Radioisotopes. The Group’s activities can be
divided into 2 main sectors:
- industrial sector (sterilization & ionization,
including sterilization of medical devices, analyt-
ical laboratory testing, food safety, and improve-
ment of material characteristics),
- medical sector (advanced radiotherapy, including
dosimetry, and radioisotope production and dis-
tribution).
In the industrial sector, IBA masters all the 4 key
technologies necessary to meet the diverse applica-
tion demands of the sterilization and ionization
markets: ethylene oxide, cobalt, electron and X-ray
technology offering customers equipment or ser-
vices according to their specific needs.
In 2000, the industrial sector accounted for 69% of
IBA’s consolidated sales, amounting to 163.6 mil-
lion EUR.
In the medical sector, IBA develops and industri-
alizes high-tech equipment for the treatment of
cancer, including both high-end photon/electron
systems such as the “Racetrack” as well as new
advanced radiation technology systems such as the
IBA Proton Therapy system. Products also include
radiotherapy and radiology dosimetry systems
ensuring accurate patient dose monitoring and
patient positioning.
The medical sector also includes the IBA radioiso-
tope business involving the marketing and sale of
cyclotrons to produce radioisotopes used principally
for medical imaging and implants for cancer treat-
ment (brachytherapy). In this business area, IBA
offers not only a complete range of highly efficient
cyclotrons but is also actively developing centers for
the distribution of FDG, both in Europe (Lyons,
France and Milan, Italy) and the USA.
In fiscal year 2000, IBA’s activities in the medical
sector accounted for 31% of the total sales figure
and stand at 72 million EUR.
IBA (Ion Beam Applications) was founded in 1986
as a spin-off from the nuclear research laboratories
of the Catholic University of Louvain-la-Neuve
(UCL) in Belgium.
Growing by acquisition in 1998-2000, IBA now
operates in 12 countries and on 3 continents.
Today, IBA is both an equipment and service
provider, owning 37 sterilization & ionization
service centers on both sides of the Atlantic and
employing more than 1300 people.
IBA is listed on the Brussels Stock Exhange since
June 1998 and indexed on NEXT 150.The IBA share
is part of the BEL 20 and is listed on the new pan-
European Stock Exchange EURONEXT. In 2000,
IBA achieved a total sales figure of 236 million EUR
and a net current result per share of 0.95 EUR.
4 IBA 2000
COMPANY PROFILE(
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CEO
In conformity with the rules of Corporate
Governance, the IBA Board consists of four
Executive Directors, four Directors representing
the shareholders and four independent Directors.
The Executive and Strategic Committee consists of
Mr Yves Jongen, Chief Research Officer and
founder of IBA, Mr Pierre Mottet, Chairman of
the Executive and Strategic Committee, Mr Jean-
Claude Delobel, Chief Executive Officer and
Mr Eric de Lamotte, former Chief Financial
Officer.
Reporting to the CEO are the Presidents of the
five Business Units: America Operations (responsi-
ble for Sterilization & Ionization activities in the
USA and comprising shared serv-
ices for all businesses in the
USA), Sterilization & Ionization
EMEAA (Europe, Middle East,
Asia, Africa), Advanced
Radiotherapy, Radioisotopes
and Technology Group (concept
development & equipment
manufacturing).
At Corporate level reporting to the CEO, there are
8 support functions: Finance, Business Develop-
ment, Controlling, Communication, Human
Resources, Information Systems, Total Quality
Management and R&D.
5 IBA 2000
OP ERAT IONAL STRUCT URE(
THE EXECUTIVE AND STRATEGIC
COMMITTEE (LEFT TO RIGHT):
YVES JONGEN
JEAN-CLAUDE DELOBEL (CEO)
PIERRE MOTTET (CHAIRMAN)
ERIC DE LAMOTTE
The IBA Board
12 Members
4 Independent Directors
4 Executive Directors
4 Shareholders
EXECUTIVE AND STRATEGIC COMMITTEE
Pierre Mottet (Chairman)Jean-Claude Delobel (CEO)Eric de LamotteYves Jongen
Organization Structure
CORPORATE FUNCTIONS
FinanceBusiness DevelopmentControllingCommunicationHRTQMInformation SystemsR&D
BUSINESS UNITS
America Operations
Sterilization & Ionization (EMEAA)
Advanced Radiotherapy
Radioisotopes
Technology Group
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IBA Mission Statement
IBA Values
6 IBA 2000
MISSION & VALUES(
✓
✓
✓We are a world-wide provider of innovative solutions
in the field of health and well-being.
In each of our markets,we want to be the leader,
setting new standards.
We do this by focusing on selected applications and by leveraging
our expertise in accelerator technology, advanced physics and chemistry.
STRIVINGFOR EXCELLENCE INNOVATION
GOOD
CITIZENSHIP
ENTHUSIASM
ADAPTABILITY
INTEGRITY
RESPECT FOR THE INDIVIDUAL
TEAM SPIRIT
T o r e a c h o u r m i s s i o n, w e a r e g u i d e db y t h e f o l l ow i n g v a l u e s :
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Highlights 2000January- Second capital increase raising 170 million EUR.- Jean Stéphenne, General Manager of SmithKline
Beecham Biologicals SA Belgium, Peter Vermeeren, for-mer Board member of ADAC in Europe andMallinckrodt in the USA, and Jacques de Vaucleroy,General Manager of BBL (Banque Bruxelles Lambert)join the IBA Board of Directors as independent directors.
- Announcement of plans to expand medical sterilizationfacilities at Petit-Rechain (Belgium) and in EasternEurope.
- Letter of intent for partnership with Ecolab Inc. (St Paul,Minnesota, USA) in the field of food pasteurization.
February- Letter of intent signed with Syncor International
Corporation (Woodland Hills, California, USA) tolaunch several new centers for FDG production anddistribution in the USA and other countries.
March- Figures for 1999 show sales increased by 258% to
142 million EUR, an operating result increased by185% and a net current result per share almost doubledto reach 0.84 EUR.
- Jean-Claude Delobel joins IBA as Chief ExecutiveOfficer
April- Signing of contract with Ecolab Inc., St Paul,
Minnesota, USA and announcement of strategic part-nership designed to offer food processors improvedfood safety.
- Opening of new irradiation facility, a joint venture withMDS Nordion, in Tepeji, Mexico.
- Arthur Janta-Polczynski, partner of Russell ReynoldsAssociates, Brussels, joins the IBA Board of Directorsas an independent director.
June- Acquisition of Proton Therapy Corporation of
America (PTCA), consolidating IBA’s strategy to pro-mote IBA Proton Therapy systems in the USA and therest of the world.
- Opening of the new IBA X-ray test center inEdgewood, New York, USA.
- Olivier Ralet, now Business Development Director forAtenor Group SA, Belgium, joins the IBA Board ofDirectors.
August- Half-year results 2000 show a net current result per
share of 0.38 EUR increasing by 31% and a sales figuretripling to 111 million EUR compared with figures atmid-1999.
September- IBA Food Safety partners with scientific researchers
from the United States Department of Agriculture(USDA) to examine in detail ionization and food safety.
November- IBA Food Safety fully supports the petition submitted
to the FDA (Food and Drug Administration) by theNational Fisheries Institute (NFI) aiming to ensuregreater food safety for crustacean seafood products inthe USA.
- IBA secures 50% market share for PET (PositronEmission Tomography) cyclotrons in Japan.
December- Sale of an 18/9 PET (Positron Emission Tomography)
cyclotron to the Asan Medical Center in Korea, thelargest General Hospital in Korea.
Highlights 2001January- The United States Departure of Agriculture (USDA)
grants approval to the IBA facility in Schaumburg,Illinois, for treatment of meat and poultry by gammairradiation.
- Agreement signed with AmeriCold Logistics to builda food ionization facility using X-rays on the largestcold storage site in the USA, at Carthage, Missouri,located at the crossroads of the nation’s primary meatand poultry production regions.
February- Acquisition of a majority share in Eastern Isotopes,
Inc., Sterling, Virginia, allowing IBA to become amajor provider of PET services, in particular produc-tion and distribution of FDG in the USA.
- Official opening of the extended sterilization facility atPetit-Rechain, near Verviers, Belgium, doubling servicecapacity and meeting the increased demands of med-ical disposable markets in Europe.
March- Submission of the 510(k) file to the FDA (Food &
Drug Administration) for market clearance of the IBAProton Therapy system at the Massachusetts GeneralHospital, Boston, USA.
- Results 2000 show sales up by 67% to 236 millionEUR, a net result Group share increased by 106% anda net current result per share up by 13% to 0.95 EUR.
7 IBA 2000
HIGHLIGH TS(
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I N D U S
This sector consists of the Business Unit
America Operations, based in Chicago, USA
and the Sterilization & Ionization Business Unit
operating in the rest of the world (EMEAA =
Europe, Middle East, Africa, Asia), headquar-
tered in Herentals, Belgium.
America Operations is composed of the Divisions
Medical Sterilization & Analytical Labs, Food
Safety and Advanced Materials and has a network
of 27 contract facilities located principally in the
USA including a site in Canada and Mexico.
Today, approximately 1500 customers process
products through these facilities, choosing from a
complete range of 4 IBA technologies: ethylene
oxide (EtO), gamma, e-beam and X-ray.
The Analytical Labs facilities are based in
3 locations with the Itasca, Illinois site as the hub
and satellites situated in the IBA ethylene oxide
plants in Ontario, California and Santa Teresa,
New Mexico. Analytical Labs offers a wide range
of services: testing services (biological indicator
testing, bioburden analysis, bioburden recovery,
package integrity and material compatability),
consulting services (ethylene oxide cycle develop-
ment, process optimization studies, packaging
solutions, qualification testing and validation,
quality system and protocol development).
America Operations also has shared services
functions, including Human Resources,
Accounting & Finance, Legal, Environmental
Health & Safety, Quality Assurance and
Information Technology. These serve the needs
of all the Business Units in the Group.
Sterilization & Ionization rest of the world
(EMEEA) currently operates 10 service centers:
3 in Belgium, 2 in France, 2 in Thailand, one in
Holland, Germany and the United Kingdom.
The customer offering also includes ethylene
oxide, gamma and steam sterilization and
e-beam, soon to be extended to X-ray.
8 IBA 2000
INDUSTRIAL
Industrial 2000Sales (millions of EUR) 164Sales as % of total sales 69%R&D expenditure (millions of EUR) 1.6R&D as % of total R&D expenditure 11.4%Personnel at 12/31/00 876Personnel as % of total personnel 71%
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T R I A L9 IBA 2000
ELECTRON BEAM/X-RAY
PRODUCTS ARE EXPOSED TO A HIGH-ENERGY ELECTRON BEAM PRODUCED BY AN ACCELERATOR PLACED IN A CONCRETE CELL. THE
ACCELERATOR CONVERTS ELECTRICITY INTO A CONCENTRATED STREAM OF HIGHLY CHARGED ELECTRONS. THIS PROCESS ALTERS VARI-
OUS CHEMICAL AND BIOLOGICAL BONDS, DESTROYING MICROORGANISMS, ENHANCING THE COLOR OF A VARIETY OF GEMSTONES,
ALTERING VARIOUS INDUSTRIAL COMPOUNDS AND ENHANCING THE SWITCHING SPEEDS OF CERTAIN SEMICONDUCTORS.
X-RAYS REPRESENT A PROMISING NEW TECHNOLOGY AND ARE OBTAINED VIA CONVERSION OF ELECTRON BEAMS.
TechnologiesApplications E-beam X-ray EtO Cobalt
Medicalproducts X X X X
FoodSafety X X X
AdvancedMaterials X X X
COBALT 60 (CO-60)IRRADIATION BY COBALT 60 CONSISTS OF EXPOSING PRODUCTS TO IONIZING BEAMS EMITTED BY CO-60 DURING ITS DESINTEGRATION.
NO RADIOACTIVITY IS ENGENDERED IN THE TREATED PRODUCTS, WHICH ARE INSTANTLY STERILIZED OR IONIZED BY THE DEEPLY
PENETRATING RAYS. AERATION AND POST-STERILIZATION TESTING ARE NOT REQUIRED.
ETHYLENE OXIDE (EtO)ETHYLENE OXIDE IS USED IN ITS GASEOUS FORM TO STERILIZE MEDICAL PRODUCTS. EXPOSURE TO THE GAS DESTROYS AN ORGAN-
ISM’S ABILITY TO REPRODUCE THROUGH AN ALKALIZATION REACTION. THE EtO PROCESS REQUIRES THAT THE HUMIDITY, TEMPERA-
TURE AND GAS CONCENTRATION BE RIGIDLY CONTROLLED. BECAUSE EtO RESIDUE REMAINS FOLLOWING PROCESSING, AN AERATION
PERIOD IS REQUIRED TO ALLOW THE EtO GAS TO DISSIPATE TO SAFE LEVELS BEFORE
HUMAN HANDLING OF THE PROCESSED PRODUCT.
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MYRON
CIVILS
Technical DirectorIBA Analytical Labs
Burr Ridge, Illinois, USA
“ We have all it takes to be the sterilization leader
of the 21st century.”
10 IBA 2000
I N D U S
Here, at IBA Analytical Laboratories,
we have helped the ethylene oxide
service centers meet the most
demanding challenges in 2000,
providing superior customer service
while reducing the cost of sterilization.
Using state-of-the-art technology, we
have now successfully reduced product
turnaround time from between 3 and 6
weeks to one week or less. Basically,
this has helped IBA customers save
millions of dollars a year.
As part of IBA, we have all it takes to
be the sterilization leader of the 21st
century. We can now provide customers
with seamless consulting services and
turn-key solutions, not only for
ethylene oxide, but also for gamma,
e-beam and X-ray sterilization.
With the integration of different
sterilization modalities and a world-
class approach to reducing costs, we
have great advantages over our
competitors.
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Medical Sterilization &Analytical Labs
Achievements 2000
Despite pressure on prices in the area of Sterilization
& Ionization, America Operations has maintained
its position as the leader in contract sterilization.This
was accomplished by aggressive contract negotiation
and by adding services to the total sterilization offer-
ing, such as ethylene oxide cycle optimization, logis-
tics management and guaranteed turn-around times,
all of which translated into reduced customer inven-
tories and quicker deliveries to customers.
Internally, time and efforts were spent on assimilating
and training EtO and Cobalt sales teams in multiple
processing technologies across an expanded geo-
graphic network of contract facilities. Integration has
now been completed for employee benefit, compensa-
tion systems, finance and accounting systems, quality
assurance policy, procedures and work instructions for
multiple technologies, environmental health & safety
policies and procedures.
During 2000, the IBA Analytical Lab facility was
relocated to the new Itasca hub, Illinois, representing
three times the size of the original laboratory and
embodying a scientific platform for technology sup-
port to existing IBA contract facilities and to their
customer base.
In Sterilization & Ionization rest of the world
(EMEAA), time and efforts in 2000 were similarly
directed towards integrat-
ing with IBA, changing
names and streamlining
activities in several plants
worldwide, starting the
platform for further
expansion.
During 2000, the ethylene
oxide facility in Petit-
Rechain, Belgium was
extended in order to cope
with the growing market
of medical device steriliza-
tion in Europe. Based in
the south of Belgium, this strategically located plant
will help IBA Sterilization & Ionization absorb
growing volumes from multinational customers using
the Benelux countries as their European distribution
hub.
Expansion work was also realized at the existing EtO
site in France at Anse near Lyons. In the United
Kingdom, considerable investments were made to
ensure compliance with all pending and anticipated
environmental regulations. In addition, a study is cur-
rently under way in the United Kingdom to increase
processing capacity by 25 % based on a new system of
automation.
In Thailand, the e-beam business focusing on the
treatment of gemstones was on the upturn. On the
gamma side, multi-year agreements were signed with
well-known medical product manufacturers on a
worldwide basis outside the USA.
11
INDUSTRIAL(
MANY PRODUCTS USED EVERYDAY
IN HOSPITALS AND IN THE HOME
ARE STERILIZED. INCREASED USE
OF STERILIZED PRODUCTS HAS
IMPROVED PUBLIC HEALTH AND
CREATED A SAFER HOSPITAL
ENVIRONMENT.
IBA 2000
BOXES CONTAINING DISPOSABLE
MEDICAL PRODUCTS ARE LOADED
INTO TOTES BEFORE BEING CON-
VEYED TO THE COBALT 60
SOURCE FOR STERILIZATION.
T R I A LTechnologies
Applications E-beam X-ray EtO Cobalt
Medicalproducts X X X X
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INDUSTRIAL - Medical Sterilization & Analytical Labs(
Perspectives 2001
With regard to Medical Sterilization & Analytical
Labs in the USA, IBA intends to continue expand-
ing its geographical network of contract facilities,
in particular leveraging its customer knowledge to
extend contract facility service offerings.
New facility service offerings will include guaran-
teed processing for time-sensitive products and
faster logistics management, providing customers
with more cost-effective solutions. Cost-effective
solutions will also include offering customers in-
house, in-line e-beam/X-ray integrated systems.
For Analytical Labs, growth is expected to come
from leveraging the expanded capacity gained
through the Itasca relocation, expanding also the
service range to include toxicology, biocompatibili-
ty and package testing. In the pipeline is also a
complete sterilization management program,
SteriPro, offering expert assistance in R&D, quali-
ty systems, protocol development, sterilization
training and regulatory submission.
12 IBA 2000
I N D U SBrought to you by Global Reports
13 IBA 2000
Food Safety
The IBA Food Safety Division functions as a busi-
ness line within the Business Unit America
Operations with sales, marketing, quality assur-
ance, engineering and executive management based
in Memphis, Tennessee, and business development
and research specialists located in the Northeast
and Southeast regions of the USA.
The Food Safety Division is composed of two sub-
units, one focusing on the existing approved com-
modities markets and the other focused on the
larger developing market for perishable foods.
Accounting for 99% of sales in 2000, the commodi-
ties business focuses on spices, herbs and botan-
icals, food packaging, animal feeds and cosmetic
products, processing over 80% of the spices irradi-
ated in the USA and holding a majority share of
the other principal commodity markets. All mem-
bers of the Commodity team have over 10 years
experience in the industry and are based at regional
locations throughout the USA, also supporting
IBA food processing facilities situated in Canada
and Mexico.
The European counterpart to IBA Food Safety is
IBA Mediris, a cobalt 60 irradiation facility based
in Fleurus, Belgium. In comparison with the USA,
the European marketplace is subject to different
regulations. IBA Mediris works to influence regu-
latory change within the European Union and
other regions that need this life-saving technology.
The Perishable food business in the USA represents
a new opportunity. Its potential is easily estimated at
more than a billion dollars per year. IBA Food Safety
intends to lead food irradiation developments in this
market. IBA Food Safety has designed the most
cost-efficient X-ray, food irradiation system in the
world and is planning the integration of the process
into food production and distribution facilities.
In addition to the network of 7 irradiation plants
processing by gamma and e-beam, IBA Food Safety
offers X-ray processing of food products at a new
test center in Edgewood, New York, thus allowing
food customers direct comparison of all three
approved food irradiation methodologies to assist in
determining which process is best suited to their
products and operations.
IBA FOOD SAFETY IS COMMIT-
TED TO SAVING HUNDREDS OF
FAMILIES FROM THE PAIN AND
GRIEF ASSOCIATED WITH CATA-
STROPHIC ILLNESSES RESULTING
FROM CONTAMINATED FOODS.
TO ACHIEVE THIS, IBA FOOD
SAFETY INTENDS TO MAKE
STATE-OF-THE-ART IRRADIATION
TECHNOLOGY - GAMMA OR E-
BEAM, AND IN PARTICULAR X-RAY
- AVAILABLE TO FOOD PRODUC-
ERS, OFFERING CONSUMERS THE
CHOICE OF OPTING FOR BETTER
FOOD SAFETY.
IBA FOOD SAFETY
PROCESSES OVER 80%
OF THE SPICES IRRADIATED
IN THE USA.
T R I A L
INDUSTRIAL - Food Safety(
TechnologiesApplications E-beam X-ray EtO Cobalt
FoodSafety X X X
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JOHN R.LOGAR
Technical ManagerIBA Food Safety
Bridgeport, New Jersey, USA
“ Being part of the largest irradiation company in the
world and treating food products is very exciting.”
14 IBA 2000
I N D U S
In 2000, we qualified an X-ray system
and conveyor at the Edgewood facility
in New York. Specifically, my team and
I developed a system for storing,
handling and processing temperature-
controlled products that could mimic
large-scale operation. We then opened
the X-ray center in June and completed
testing on numerous products like red
meat, ready-to-eat meats and fruit
juices. We have prepared and developed
data that will make the transfer to the
announced commercial processing
facility in Bridgeport very smooth.
I see only positives for my specific business
and for the rest of IBA. Food irradiation is
the newest untapped market in irradiation
processing in the USA. I am confident that
IBA Food Safety will become a dominant
player in this industry.
Being part of the largest irradiation
company in the world and irradiating
food products is very exciting. I chose
IBA because it has all the things I’m
looking for in a company.
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15 IBA 2000
Achievements 2000
Key developments in 2000 for IBA Food Safety
include the announcement of an agreement with
Ecolab Inc., the largest sanitation supplier in the
world, in order to market IBA's food irradiation
services, to conduct joint Research & Development
and to develop best practices in balancing sanitation
and irradiation for food producers.
In June 2000, IBA Food Safety announced the
opening of its new X-ray test center in New York,
providing food processors with an opportunity to
test their food products using a commercial quality
X-ray system, a technology previously offered only
by a limited number of university research accelera-
tors. To date, this test center has processed hundreds
of samples from a broad range of food companies.
In September 2000, IBA Food Safety announced its
support of and participation in the Food Irradiation
Processors Alliance (FIPA). As the largest irradia-
tion services supplier in the world, IBA is leading
efforts to coordinate food irradiation education and
promotion with the food industry.
In October 2000, a development agreement was
announced between IBA Food Safety and the
USDA's Agricultural Research Service (ARS),
responsible for evaluating food processes, including
irradiation. This agreement provides ARS with
access to IBA's X-ray, e-beam and gamma facilities.
In December 2000, IBA Food Safety announced a
Grant of Inspection approval for the existing
Schaumburg (Chicago) Illinois facility, by which
customers will be able to gamma-process fresh meat
and poultry.
The year 2000 was also marked by continuing efforts
to expand approvals for irradiated food products. To
achieve this, IBA Food Safety actively supported the
Food Irradiation Coalition’s responses to FDA's
questions regarding the processed food petition, pro-
vided technical assistance and support to the
National Fisheries Institute for their petition to the
FDA for improving seafood safety and finalized
with the FDA a petition to allow irradiation of dry
animal feeds and pet chews.
EVERY YEAR, MILLIONS OF TONS
OF CEREALS, VALUED AT BILLIONS
OF DOLLARS, ARE LOST TO
INSECTS. DISINFECTING GRAINS
WITH ELECTRON BEAMS IS THE
MOST ADVANCED MEANS OF PRO-
TECTING THIS PRECIOUS HARVEST.
IN PARALLEL TO ITS APPPLICATION
IN THE MEDICAL FIELD, IONIZING
RAYS (COBALT 60, E-BEAM OR
X-RAYS) CAN BE USED TO REDUCE
THE MICROBIAL LOAD IN FOODS,
BENEFITTING CONSUMERS, FOOD
PRODUCERS AND DISTRIBUTORS.
INDUSTRIAL - Food Safety(
T R I A LBrought to you by Global Reports
Perspectives 2001
At the beginning of the year 2001, IBA Food Safety
signed an agreement with AmeriCold Logistics, the
world's largest cold storage distribution company, to
build an IBA X-ray service center at AmeriCold's
Carthage Missouri location, the largest cold storage
facility in the USA.
In the year 2001, IBA Food Safety will concentrate
of the following challenges:
- expanding commodities capacity to accommodate
the growing demand for pet chews, animal feeds,
herbs and botanicals,
- introducing the IBA GUARDiON program, rep-
resenting the culmination of the most advanced
technology, the best developed procedures and
most experienced food irradiation team in the
world,
- completing agreements with food processors for
additional x-ray processing facilities,
- implementing the first IBA Food Safety
Consumer Awareness Program,
- expanding the commodities business through var-
ious marketing initiatives developed to open sig-
nificant additional volume opportunities.
IBA FOOD SAFETY
TECHNOLOGY CAN MAKE READY-
TO-EAT FRUITS AND VEGETABLES,
SUCH AS SALADS,
CLEANER AND SAFER FOR CON-
SUMERS. IRRADIATION ALSO
EFFECTIVELY CONTROLS THE
BACTERIA THAT CAUSE EARLY
SPOILAGE OF MEAT PRODUCTS.
MANY SUPPLIERS OF BOTANICAL
INGREDIENTS AND
MANUFACTURERS OF NATURAL
HEALTH PRODUCTS IRRADIATE
THEIR PRODUCTS TO
ENSURE THE SAFETY AND
WHOLESOMENESS OF THE FINAL
PRODUCT.
16 IBA 2000
INDUSTRIAL - Food Safety(
I N D U SBrought to you by Global Reports
17
THE DYNAMITRON ELECTRON
BEAM ACCELERATOR HAS A 40-
YEAR OLD EXCELLENT REPUTATION
FOR RELIABILITY AND QUALITY
WITH OVER 200 INSTALLATIONS
AROUND THE WORLD. AVAILABLE
IN MODELS RANGING FROM
550 KeV TO 5 MeV BEAM
ENERGY.
IBA 2000
INDUSTRIAL - Advanced Materials(
Advanced Materials
The IBA Advanced Materials Division covers a
broad spectrum of markets and products that can be
simply categorized as those materials not requiring
reduction of microorganisms (sterilization or pas-
teurization).
Irradiation of advanced materials typically requires
the use of high power electron beam accelerators at
different energies. IBA is well-positioned to offer
advanced materials customers the type of accelerator
they need through its high power Rhodotron and
Dynamitron products.
Furthermore, IBA Advanced Materials is in the
unique position of being able to offer customers not
only scientific support for their product and process
development and enhancement, but also processing
services, and full turn-key systems when the cus-
tomer needs more than just the accelerator.
IBA Advanced Materials is supported by the net-
work of sterilization & ionization sites in the USA
and the rest of the world. Specifically, electron beam
processing centers are situated in Bangkok,
Thailand, San Diego, California and Gaithersburg,
Maryland, USA with 3 manufacturing/maintenance
centers and 18 other gamma facilities worldwide.
IBA Advanced Materials focuses on those markets
and products where there are attractive opportunities
for today and growth potential for the future. Today,
these focussed markets, each of which often includes
subcategories of products, comprise:
• Bulk polymers. The ability to concentrate high-
energy radiation into such materials leads to new
types of chemistry that can be done no other way, or
to replace chemistry which leaves residuals in the
materials or creates environmental pollutants.
Examples of polymers that are treated in IBA service
centers and by equipment sold by IBA include poly-
tetrafluoroethylene (PTFE), polyethylene, poly-
propylene, and polyethylene oxide. These polymers
may be used as additives in other polymer products
or to improve the manufacturing process.
T R I A L
THE RHODOTRON RELIABLY AND
COST-EFFECTIVELY PRODUCES
HIGH-ENERGY, HIGH-POWER
ELECTRON BEAMS FOR USE IN
AN EXPANDING RANGE OF
INDUSTRIAL APPLICATIONS FOR
THICKER PRODUCTS. MODELS
ARE AVAILABLE UP TO 10 MeV
AND 200 KW.
TechnologiesApplications E-beam X-ray EtO Cobalt
AdvancedMaterials X X X
Brought to you by Global Reports
• Formed or manufactured parts. Parts may be
irradiated during or after the manufacturing process
to change many properties of the material, such as
heat resistance, shape memory, stiffness, strength,
and hardness. Examples of treated products are gas-
kets, seals, hoses, and automobile tires.
• Wire and cable. Both formed parts, wire and cable
are irradiated to enhance heat and high voltage break-
down resistance with increased mechanical strength.
• Tubing. Also formed parts, several different types
of plastic tubing are irradiated. A significant amount
of plumbing tubing is irradiated in Europe and can
be viewed as an emerging market within the USA.
Benefits include strengthening the tubing. Heat
shrinkable tubing is usually irradiated to create its
shape memory property. Catheter tubing is a niche,
high margin irradiation market. Typically used in
angioplasty products, the process increases the burst
strength of the tubing.
• Semiconductors. When certain power semicon-
ductors (such as Insulated Gate Bipolar Transistors
and Fast Recovery Diodes) are irradiated with high
energy electron beam, the crystalline structure of the
semiconductor is altered to enhance the switching
speed. IBA now services many of the world’s power
semiconductor manufacturers and sees continued
growth not only in production, but the need for
higher doses. Consistent with IBA’s strategy to offer
high-quality, value-added services, IBA has applied
for a patent for containment of semiconductor wafers
during the irradiation process to allow absorption of
near uniform dose throughout stacks of wafers.
Achievements 2000
IBA is expanding its service offerings to provide cus-
tomers with greater value. In 2000, IBA entered into
a contract with a customer to irradiate their polymer,
blend the polymer, providing uniformly functioning
material and release the material to the customer
based upon measured viscosity, not radiation dose.
To attain this and improve the process, the customer
worked closely with IBA Advanced Materials tech-
nical staff. The blending operation will be qualified
for customer use in early 2001.
Also in 2000, the high energy electron beam pro-
cessing facility in Thailand was commissioned and
opened for operation. Today, it services many gem-
stone customers for colorization of topaz.
Perspectives 2001
The Bridgeport, New Jersey, electron beam process-
ing facility will be in operation mid-2001. Several
customers are keen to use the new facility, and some
have signed volume commitment contracts worth
nearly $2 million annually.This facility was designed
and constructed by IBA’s Technology Group.
18 IBA 2000
ELECTRON BEAM PROCESSING IS
USED TO CROSS-LINK A SIGNIFI-
CANT FRACTION OF THE PLASTIC
SHEATHING ON WIRE AND CABLE,
GIVING IT IMPROVED STRENGTH,
HEAT AND ABRASION RESISTANCE.
WITH COMPLETION SCHEDULED
FOR MARCH 2001, THE
BETALINE, A COMPACT, SELF-
SHIELDED DOUBLE-SIDED LINEAR
ACCELERATOR CAN BE RAPIDLY
INSTALLED IN AN EXISTING LOCA-
TION FOR IN-HOUSE/ON-LINE
PROCESSING OF MATERIALS.
M E D
INDUSTRIAL - Advanced Materials(
Brought to you by Global Reports
MEDICAL
19 IBA 2000
This sector consists of the Business Units
Advanced Radiotherapy, headquartered in
Uppsala, Sweden, with offices in
Schwarzenbruck, Germany and Memphis, USA
and the IBA Radioisotopes Business Unit, based
in Louvain-la-Neuve, Belgium and operating
worldwide.
At year-end 2000, IBA’s activities in this sector
generated a sales figure of 72 million EUR,
increasing by almost 50% in comparison to 1999
(48.6 million EUR).
I C A LMedical 2000Sales (millions of EUR) 72Sales as % of total sales 31%R&D expenditure (millions of EUR) 13R&D as % of total R&D expenditure 89%Personnel at 12/31/00 358Personnel as % of total personnel 29%
Brought to you by Global Reports
M E D
EARL
CLEVELAND
Program ManagerProton Therapy Systems
Louvain-la-Neuve, Belgium In 2000, I proposed a beam delivery
system design that is optimized for
treatment of eye and head cancers. IBA
physicists have confirmed that this will
significantly shorten the corresponding
treatment times, thereby reducing
treatment cost and improving patient
comfort.
In fact, that’s why I’m proud to work for
IBA. Dedicated to commercialize high-
precision proton therapy systems, we
focus on eliminating the most undesirable
side effects of cancer radiation therapy.
Integrating the management of all
proton therapy technical activities,
including installation projects, R&D
and upgrade systems, IBA has brought
together a well rounded team of
dedicated scientists, specialists in
industrial technology and seasoned
proton therapy professionals.
“ We focus on eliminating the most undesirable side
effects of cancer radiation therapy.”
20 IBA 2000Brought to you by Global Reports
I C A L
IBA Advanced Radiotherapy is composed of three
different departments, each with its own marketing,
sales, R&D and production facilities:
- advanced radiotherapy treatment systems includ-
ing the extremely precise IBA Proton Therapy sys-
tem and the Racetrack (MM50) system,
- radiotherapy dosimetry systems, and
- diagnostics dosimetry equipment.
The overall mission of the IBA Advanced
Radiotherapy Business Unit is to lead the way in
high-precision radiotherapy and dosimetry, gene-
rating growth through in-house developments of
selected niche markets and via strategic acquisitions.
Cancer radiation therapy
About 13 million people a year are contracting can-
cer in the Western world. According to the
American Cancer Society, cancer is the second lead-
ing cause of death in the USA, exceeded only by
heart disease and nearly 5 million lives have been
lost to cancer since 1990. In the year 2000, around
1.2 million new cancer cases were expected to be
diagnosed. In the European Union according to the
statistics of Eucan - Europe against Cancer –
European Commission, there were 1.5 million new
cancer cases and 925 146 deaths due to cancer.
Today about 50% of cancer patients can be cured.
The success rate differs from one country to anoth-
er, ranging from 40 to 55% on an overall average. Of
these 50%, 60% are treated by radiotherapy alone or
in combination with surgery.
Treatment with radiotherapy started around 100
years ago, the challenge being to kill the more radi-
ation-sensitive tumor cells while damaging as little
as possible surrounding healthy cells and accounting
for differing radiation sensitivity from patient to
patient.
IBA Proton TherapysystemIn theory, proton therapy offers greater efficacy in
all cases where conventional radiotherapy is cur-
rently applied. Prior to IBA developments, the cost
of the equipment limited the technology to be used
on a parasite basis in a handful of research centers.
In contrast to conventional radiotherapy techniques,
21
ADVANCED RADIOTHERAP Y(
IBA 2000
THE IBA PROTON THERAPY
SYSTEM IS EQUIPPED WITH AN
IBA 230 MeV CYCLOTRON.
HERE, THREE SUCH CYCLOTRONS
BEING PERFECTED FOR FUTURE
PROTON THERAPY CENTERS.
THE IBA PROTON THERAPY
SYSTEM DESTROYS TUMORS WITH
UNEQUALLED PRECISION, SAFETY
AND EFFICACY.
Brought to you by Global Reports
protons lose the majority of their destructive energy
only at a specific depth, which can be precisely cal-
culated as a function of the beam’s initial energy.
Proton beams can therefore be used to destroy
tumors with an unequaled degree of precision, safe-
ty and efficacy.
Superior in all applications of radiotherapy, proton
therapy is particularly indicated where conventional
radiotherapy presents an unacceptable risk, for
example, in cases of cancer of the eye, the brain or
the prostate and for curing cancer in children.
IBA Racetrack systemRepresenting a new generation in advanced radio-
therapy treatment systems, the IBA Racetrack
(MM50) radiotherapy system is able to treat deep-
seated tumors using both photon and electron beams
at ultra-high energies. Multiple-beam treatment
using conformal therapy and intensity modulation
with scanned electron and photon pencil beams
ensures that only the target volume is affected with a
high therapeutic dose.
The cost of the Racetrack is situated mid-way
between proton therapy and conventional radiother-
apy. This makes the Racetrack a particularly attrac-
tive option for hospitals seeking to provide better
treatment than available with conventional radio-
therapy but lacking the budget for proton therapy.
The IBA Racetrack is expected to reinforce IBA’s
leading position in the area of high-end radiotherapy
systems.
22 IBA 2000
ADVANCED RADIOTHERAP Y(
IN THE FUTURE, IBA WILL BE
ABLE TO OFFER A COMPLETELY
EQUIPPED PROTON THERAPY
CENTER, INCLUDING A 230
MeV CYCLOTRON, GANTRIES
(LARGE FRAME PERMITTING
EXTREMELY PRECISE TARGETING
OF THE THERAPEUTIC BEAM
WITHIN THE PATIENT), AND
SOFTWARE PACKAGE PROVIDING
DOCTORS WITH ALL THE INFOR-
MATION THEY NEED TO ENSURE
THE MOST EFFICIENT ANTI-CAN-
CER TREATMENT. IBA IS COM-
MITTED TO MAKING PUBLICLY
AVAILABLE THE TYPE OF TECH-
NOLOGY UNTIL NOW LIMITED
TO RESEARCH CENTERS.
THE RACETRACK REPRESENTS A
NEW GENERATION IN ADVANCED
RADIOTHERAPY SYSTEMS BASED
ON PHOTONS AND ELECTRONS. IN
2000, IBA ADVANCED
RADIOTHERAPY SOLD 3 SUCH
SYSTEMS TO CHINA.
M E DBrought to you by Global Reports
ADVANCED RADIOTHERAP Y(
Radiotherapy dosimetryIn radiotherapy dosimetry, IBA Advanced
Radiotherapy offers a choice of systems for
radiation field analysis, in-vivo dosimetry, absolute
dosimetry, IMRT dosimetry and equipment for
quality assurance.
Dosimetry products allow measurement of the radi-
ation dose delivered by radiotherapy equipment and
administered to the cancerous tumor and to other
cells in the patient. Unlike particle accelerators,
dosimetry products are relatively low-cost (a few
thousand EUR to a few hundred thousand EUR)
and are available in large quantities. They therefore
generate recurrent annual sales for the Group.
IBA is clearly market leader in the 40 million EUR
dosimetry market with products placed in more than
1500 radiation oncology centers and serving the needs
of around 16 000 radiologists worldwide. In particu-
lar, the dosimetry business is experiencing growth in
new high conformal cancer treatment techniques such
as intensity modulated photon and proton beams with
new beam monitoring and analysis technologies.
Here, IBA has an on-going extended research and
development program and collaborates with salient
scientific partners in clinics and research institutes.
Consequently IBA offers complete dosimetry solu-
tions ranging from basic radiation physics to com-
plex treatment situations.
Diagnostics dosimetryIn radiation diagnostics, the permanent challenge is
to obtain a maximum amount of clinical information
and the best quality images while exposing the
patient to the smallest dose of radiation as possible.
With more than 15 years’ experience in this field,
IBA offers a full range of quality assurance and dose
monitoring devices which help radiologists obtain
the best results with exact documentation of patient
exposure according to international standards.
23 IBA 2000
THE NEW KERMAX INSTRUMENT
ALLOWS PATIENT DOSE MONITOR-
ING IN COMPLETE CONFORMITY
WITH GOVERNMENT REGULATIONS.
THE “BLUE PHANTOM”
IS USED TO CHARACTERIZE THE
BEAM TRACE FROM A LINEAR
ACCELERATOR EMPLOYED IN CAN-
CER TREATMENT.
I C A LBrought to you by Global Reports
M E D
CAMILLA
RÖNNQVIST,PH. D
Detector SpecialistIBA Advanced Radiotherapy
Uppsala, Sweden
I joined IBA Advanced Radiotherapy in
February 2000 and since then I can see
only the positive sides of the integration.
My main project in 2000 was
developing the two-dimensional large-
area detector for IMRT (intensity
modulated radiation therapy)
verification and the development of
proton detectors. This is exciting
technology with a tremendous potential
for development.
Radiotherapy is advancing and the
detectors for dose verification have to
follow suit in order to provide safe
treatment for patients. Belonging to a
strong company with such a long
experience in radiotherapy is a real
advantage since we can make the right
decisions for the right applications and
produce the best detectors in high-
technology radiotherapy dosimetry.
“ Belonging to a strong company with such a long expe-
rience in radiotherapy dosimetry is a real advantage.”
24 IBA 2000Brought to you by Global Reports
I C A L
Achievements 2000Highlights for IBA Advanced Radiotherapy in 2000
include the order in April for 3 Racetrack cancer radi-
ation systems to China. The first of these 3 systems is
expected to be delivered in the Autumn of 2001.
In the area of Proton Therapy, the 510(k) file for
market clearance of the IBA Proton Therapy system
at the Massachussetts General Hospital, Boston,
USA, was submitted to the FDA (Food and Drug
Administration) in March 2001.
In the dosimetry field, the year 2000 witnessed a
technology shift, moving away from selling products
and sub-systems to offering complete solutions for
customers. Also, there was an increase in the number
of orders placed.
One of the most successful diagnostics dosimetry
instruments in 2000 was the new KermaX instru-
ment, a system allowing patient dose monitoring in
conformity with European Community guidelines.
By combining the KermaX plus system with the
basic E-system, it is possible to create a comprehen-
sive radiology department dose logging system.
Other achievements in the area of dosimetry include
a new device for quality control in ultrasound equip-
ment, revealing a new market with high potential
growth.
Also in 2000, a breakthrough was achieved in the
new field of IMRT (Intensity Modulated Radiation
Therapy) where the main challenge has been to dis-
play dose irradiation distribution in one shot no mat-
ter how complicated the structure is.
In addition, successful development work was per-
formed on the amorphous silicone sensor plate. The
advantage of the amorphous silicone plate is that it
is fast and flat, offers high-timbre resolution and can
be water-proofed allowing a one-shot display of
intensity modulated fields.
Perspectives 2001One of the major challenges for 2001 will be to
start treating patients with the IBA Proton
Therapy system at the Massachusetts General
Hospital, Boston, pending market clearance of the
system by the FDA.
Also, IBA intends to sell at least one other Proton
Therapy system in the USA or rest of the world
before the end of the year.
25
ACCELERATION OF PARTICLES IN
STATE-OF-THE-ART RADIATION
THERAPY ALWAYS REQUIRES FINE
TUNING OF MAGNETIC FIELDS AND
ELECTRONIC COMPONENTS.
IBA 2000
ADVANCED RADIOTHERAP Y(
THE VERSATILITY AND PRECISION
OF THE RACETRACK ENABLES
FAST AND EFFECTIVE TREATMENT
OF A WIDE RANGE OF
MALIGNANCIES.
Brought to you by Global Reports
M E D
STÉPHANE
LUCAS
Project ManagerIBA Radioisotopes
Louvain-la-Neuve, Belgium Last year, I was involved in
constructing a new site for a high-
performance radioisotope-producing
cyclotron. Together with my team, I
assembled the cyclotron and extracted
the first beam. That gave me a great
sense of professional achievement, in
particular since the radioisotopes
produced will be used to treat cancer.
I am excited to be part of IBA since we
are a group of dynamic experts from
different backgrounds, all open and
willing to work together to make high-
technology projects a reality.
Trained in physics, project coordination
and finance management, I am very
confident about IBA’s future. We dare to
take on technological challenges and
advance on high-potential projects that
will improve the quality of peoples’
lives.
“ We dare to take on technological challenges
and advance.”
26 IBA 2000Brought to you by Global Reports
I C A L
IBA Radioisotopes grew out of the marketing arm
of IBA prior to the initial public offering and the
acquisitions of 1998-2000, and represents IBA’s pri-
mary competence and core business: the marketing
and sale of cyclotrons producing radioisotopes for
use in medical imaging and brachytherapy implants
(seeds or other radioactive supports) used to treat
cancer tumors.
IBA Radioisotopes is active in 3 specific sectors:
- traditional nuclear medicine (SPECT),
- Positron Emission Tomography (PET) and FDG-
related products,
- brachytherapy.
The IBA Radioisotopes product line comprises a
wide range of Cyclotrons for traditional nuclear
medicine: the Cyclone 30, a selection of smaller
cyclotrons developed specifically for PET (Cyclone
18/9, 10/5, 3), palladium-103 (Pd-103) producing
cyclotrons, targets and chemistry modules for the
synthesis of commonly used SPECT and PET iso-
topes.
IBA Radioisotopes customers are mainly from the
medical industry, and include public and private
hospitals, industrial radiopharmaceutical companies,
medical device manufacturers, national atomic ener-
gy commissions in the developing world and
research centers.
SPECTIn the area of cyclotrons for traditional nuclear
medicine such as SPECT (Single Photon Emission
Computer Tomography), IBA Radioisotopes now
holds 95% of the cyclotron world market with
19 Cyclone 30s sold across all 5 Continents. Today
there is a potential for high-current upgrades and
related sub-systems such as chemistry with new
sales opportunities in developing countries.
PETWith regard to PET which is mainly used in the
field of neurology, cardiology and recently and most
importantly in oncology, IBA has sold 42 cyclotrons
across the world. When compared with traditional
nuclear medicine, PET gives better resolution
images and in contrast to X-ray, CT and MRI it
27
RADIOISOTOP ES(
IBA 2000
IN DECEMBER 2000, HER
ROYAL HIGHNESS PRINCESS
MATHILDE OF BELGIUM VISITED
THE CHILDREN’S WARD OF THE
KOREAN CANCER CENTER
HOSPITAL (KCCH) IN SEOUL.
THE KCCH BOUGHT AN IBA
CYCLONE 30 IN AUGUST 2000
TO ENSURE SELF-SUFFICIENT FDG
PRODUCTION OF RADIOISOTOPES
FOR MEDICAL IMAGING.
RADIOISOTOPES PRODUCED BY AN
IBA CYCLOTRON ARE FIRST CON-
VERTED INTO RADIOPHARMACEU-
TICALS PRIOR TO INJECTION INTO
THE PATIENT.
Brought to you by Global Reports
RADIOISOTOP ES(
shows the metabolic cell functioning allowing
extremely precise diagnosis and reliable disease
monitoring.
In this area, IBA offers a full range of PET
cyclotrons and chemistry modules, including a new
module for the production of FDG, the key phar-
maceutical product used in PET today. FDG stands
for F-18 fluorodeoxyglucose and is the most com-
mon short-lived radiopharmaceutical used in PET.
It allows more accurate and precise diagnosis of
tumors at an early stage and thus more appropriate
treatment. As such, it is considered to be the solution
of choice for the diagnosis of cancer and for moni-
toring a patient’s response to cancer treatment.
In the last few years, reimbursement for PET has
been increasing, the number of indications is on the
rise and distribution of FDG is becoming a reality.
In addition, the end of the 1990s has witnessed a
move away from in-house production of FDG by
hospitals to obtaining FDG supplies from central-
ized FDG distribution centers.
IBA Radioisotopes intends not only to continue sell-
ing cyclotron systems including chemistry modules
to hospitals, clinics and research centers but also to
building a network of FDG production centers in
Europe, the USA and Asia.
BrachytherapyBrachytherapy is a procedure by which the
radioactive source is implanted within a cancer-
ous tumor and the radiation treats the tumor
from the inside. One of the key radioisotope
sources used in brachytherapy is palladium-103
with a half-life of 17 days produced by the IBA
cyclotron beam.
This type of treatment has reduced side effects,
requiring only mild intervention which can be car-
ried out in an outpatient clinic. The social security
system can thus economize on the expensive costs
of patient hospitalization.
IBA Radioisotopes has taken 90% of the cyclotron
market dedicated to the production of Pd-103 used
in brachytherapy with 16 units operational, the
majority of them installed in the USA.
Moving on from being an equipment provider, IBA
Radioisotopes has the ambition to offer innovative
brachytherapy products and services (irradiation
services, bulk isotopes, sources, delivery systems,
etc) for improving the safety and effectiveness of
brachytherapy procedures.
C yclotron
Technical Quality Contr ol
Preparation
Raw Materials
Logistics
Decontamination
Airlock
Logistics
Reception
Production
Packaging &Dispatching
FDG Production Dispensing
FDG ready
DESIGNED FOR USE WITH ANY
PET-DEDICATED CYCLOTRON,
THE NEW IBA FDG MODULE
PRODUCES 18F-FDG IN
INJECTABLE FORM.
28 IBA 2000
EXAMPLE OF AN FDG DISTRIBU-
TION CENTER WITH AN IBA
CYCLOTRON, INTEGRATED RADIO-
PHARMACEUTICAL LABORATORIES,
CLEAN ROOMS, LOGISTICS
OFFICES, PACKAGING AND DIS-
PATCHING AREA.
M E DBrought to you by Global Reports
Achievements 2000In 2000, the main strategy of IBA Radioisotopes
was to move away from being just an equipment
supplier to becoming a provider of services, that is
migrating down the value chain to larger markets
offering increased margins and turnover.
Nevertheless, the year 2000 was a record year for
IBA Radioisotopes in terms of equipment sales. In
November, IBA secured 50% market share in Japan
thanks to several PET cyclotron sales to that coun-
try. These sales followed in the wake of other suc-
cessful deals for radioisotope-producing cyclotrons
in other part of Asia and Europe.
In the area of FDG production, 2 FDG distribution
centers have been installed in Europe, one in Lyons,
France, the other in Milan, Italy. Both are currently
awaiting licenses to permit distribution of FDG.
Perspectives 2001In February 2001, IBA announced that it acquired an
80% share in Eastern Isotopes Inc., a US leader in
FDG production and distribution, headquartered in
Sterling, Virginia, USA, providing full service radio-
pharmaceuticals to the nuclear medicine community.
With over 100 employees, regional offices at six dif-
ferent sites and sales estimated at $12 million (end
February 2001), Eastern Isotopes Inc., established in
1995, is fully committed to setting up distribution
centers for pharmaceuticals used in PET. Currently,
Eastern Isotopes Inc.
distributes a full range
of pharmaceuticals to
over 200 hospitals and
clinics located in more
than 20 states of America.
This majority stake in Eastern Isotopes Inc. will
allow IBA Radioisotopes to realize its strategy of
setting up US-based FDG production centers to
meet the growing needs of hospitals and imaging
centers. In return, Eastern Isotopes Inc. will benefit
from IBA’s proven history in nuclear medicine, its
cyclotron expertise, and the complementarities that
exist with other cancer treatment techniques.
In the USA, FDG is reimbursed and the number of
indications for reimbursement is increasing. In 2000,
around 200 PET scanners were sold in the USA and
in the next 2 years all major cities in the USA are
expected to have access to commercial FDG.
IBA intends to become a major player in this field, by
developing the existing network of FDG centers
acquired via Eastern Isotopes Inc. from 2001 onwards.
In addition to its current line of PET and SPECT
cyclotrons, new cyclotron technology has been
developed by IBA and is under production. This
technology is scheduled to go into operation at the
new production site in Fleurus, Belgium, providing
innovative irradiation services to the brachytherapy
community.
RADIOISOTOP ES(
29
THESE TINY HOLLOW IMPLANTS
CARRYING THE PALLADIUM 103
RADIOISOTOPE ARE EFFECTIVE
AGAINST PROSTATE CANCER.
TREATMENT REQUIRES ONLY A
SINGLE INTERVENTION IN AN
OUTPATIENT CLINIC, WITHOUT
LOCAL ANESTHETIC. IT CONSISTS
OF USING A HOLLOW NEEDLE TO
INSERT THE TINY RADIOACTIVE
IMPLANTS INTO THE CANCEROUS
TUMOR.
IBA 2000
THE STRATEGY OF IBA
RADIOISOTOPES IS TO MOVE
FURTHER DOWN THE VALUE
CHAIN, ESTABLISHING ITSELF IN
LARGER HIGH-VALUE MARKETS
OFFERING INCREASED TURNOVER.
I C A L
Sell Cyclotron
Produce radiopharmaceuticals
Distribute radiopharmaceuticals
Hospital
Brought to you by Global Reports
JÖRN
MEISSNER
PH. DVice President,
Facility & Process Engineering
Technology Group,Louvain-la-Neuve, Belgium
“ We have such diversity in the Group,
so many different talents. Nobody can do today
what IBA can do.”
30 IBA 2000
INNOVATION &The engineering teams from IBA
Technology Group give expert technical
support to the IBA market-facing
Business Units all across the world.
Together with IBA Food Safety, for
example, we have put the first IBA
X-ray center into operation in
Edgewood, New York.
The food test results obtained have
exceeded our expectations. We are able to
apply a uniform dose of X-rays to the
product without changing its intrinsic
properties such as its taste and texture.
By using existing validation techniques,
we can obtain advanced technological
solutions that are easy to implement in
industrial processing environments. We
have such diversity in the Group, so
many different talents. Nobody can do
today what IBA can do.
Brought to you by Global Reports
Innovation and technology are at the heart of IBA’s
growth strategy, and the Business Unit Technology
Group constitutes the hub of IBA’s technological
expertise, headquartered in Louvain-la-Neuve,
Belgium with production and development facilities in
Long Island, New York and in Uppsala, Sweden, and
EtO and gamma engineers based in Chicago, USA.
The main objective of the IBA Technology Group is
to support the sales networks of the other Business
Units Sterilization & Ionization, Advanced
Radiotherapy and Radioisotopes by giving assistance
with pricing, quotations and technical configura-
tions. In addition to this, Technology Group is
responsible for equipment sales, in the area of
Advanced Materials.
Comprising around 100 specialized engineers, IBA
Technology Group also develops equipment, manu-
factures and installs accelerators and peripheral sys-
tems including patient or product handling devices,
providing technical training and comprehensive docu-
mentation. In particular, Technology Group experts
manage turn-key projects from conception to installa-
tion offering a full after-sales service, aiming to learn
about and better satisfy customer needs via the creation
and promotion of users meetings across the globe.
Technology Group offers 2 lines of products based
on the same technologies: electron-based accelera-
tors such as the Rhodotron or the Dynamitron, used
to sterilize medical products, enhance materials, or
kill harmful pathogens in food, and secondly proton-
based accelerators including a complete range of
Cyclotrons used to produce radioisotopes or treat
cancer tumors and a selection of related chemistry
systems.
In particular, IBA
Technology Group is
committed to designing
new systems and to con-
tinually optimizing exist-
ing products. For this,
Technology Group engi-
neers work hand-in-hand
with R&D.
Achievements 2000
Major achievements in
2000 included the
production of several
Cyclotrons and Rhodo-
trons, as well as the on-site installation of a num-
ber of cyclotrons. At the Long Island facility in
New York, 2 Dynamitrons were constructed, one
of which is a new high-powered machine dedicat-
ed to food pasteurization and destined to be
installed at the AmeriCold Logistics site in
Cathage, Missouri, USA. EtO and gamma site
engineers based in Chicago, USA were responsible
for a number of major projects, including a mate-
rials blender at Salem and the new food irradia-
tion/materials X-ray center destined to open at
Bridgeport, New Jersey in the second quarter of
2001.
31
INNOVAT ION & TECHNOLO GY(
IBA 2000
TECHNOLOGYBrought to you by Global Reports
INNOVAT ION & TECHNOLO GY(
Development work on the Betaline, a compact
patented electron accelerator for in-line/in-house
sterilization continued, with completion scheduled
for early 2001.
With regard to the IBA Proton Therapy system at
the Massachusetts General Hospital in Boston,
USA, the key event was to complete the integration
of the software in order to submit the 510(k) file to
the FDA for market clearance. This major mile-
stone was achieved in March 2001.
Development work continued on a self-extracting
Cyclotron which successfully produced its first
beam in December 2000.
Perspectives 2001
The most important challenge in 2001 will be to
start patient treatment with the IBA Proton
Therapy system at the Massachusetts General
Hospital in Boston once FDA market clearance for
the system has been obtained. IBA Technology
Group will continue work on the next development
stages of the Proton Therapy system, namely per-
fecting pencil beam scanning.
The Bridgeport facility is expected to become
operational in the second quarter of 2001.
Technology Group experts will then work on X-ray
characterization and conveyor development dedi-
32 IBA 2000
OPTIMAL CYCLOTRON PERFORM-
ANCE REQUIRES HIGHLY PRECISE
ENGINEERING AND VALIDATION
SKILLS BEFORE MARKET RELEASE
AND INSTALLATION AT THE
CUSTOMER’S SITE.
INNOVATION &Brought to you by Global Reports
cated to X-ray. Construction work on the first X-
ray center wholly dedicated to food in Carthage,
Missouri will start and development work on a new
high-power Rhodotron will be finalized by the end
of 2001.
By optimizing synergies and cross-fertilizing ideas
between the different Units of the Group, IBA
Technology Group will continue to play a unique
role in unifying innovative forces within the Group.
Long-term projects include the MYRRHA system
for the incineration of long-lasting nuclear waste
through exposure to sub-critical neutron sources.
In this area, IBA has entered into partnership with
the Nuclear Energy Center (SCK-CEN) in Mol,
Belgium for the design of the project. A contract
between SCK-CEN and IBA is scheduled to be
signed in the presence of international scientists
and European dignataries in the second quarter of
2001.
INNOVAT ION & TECHNOLO GY(
33 IBA 2000
TECHNOLOGY GROUP ENGINEERS
FORM THE INDISPENSABLE LINK
BETWEEN DESIGN, PRODUCTION
AND FIELD WORK.
TECHNOLOGYBrought to you by Global Reports
GERI
TONEY
Human Resources AssistantIBA Technology Group
Long Island Facility,New York, USA
“ The communication and cooperation of everyone
at IBA has helped greatly in easing our integration
into the IBA family”
34 IBA 2000
H U M A NThe merger with IBA has had a great
impact on my daily work schedule. As a
Human Resource support, I have been
deeply involved in the transition of
health benefits during the past year.
This was a major change that effects
everyone and I am happy to say that the
changeover went very smoothly and
was completed on schedule with no
major problems.
As with any major change to a business,
there are many challenges that must be
faced. The communication and
cooperation of everyone at IBA has
helped greatly in meeting these
challenges and in easing our integration
into the IBA family. I look forward to
being a key contributor as other benefits
and personnel policies are reviewed.
Brought to you by Global Reports
IBA is an international Group with more than 1300employees in 12 different countries and 49 sitesspread over the USA, Asia and Europe. Listed in theBEL 20, the Belgian index for the country’s 20 topmost performing companies, IBA is now indexed onthe paneuropean Stock Exchange Euronext sinceSeptember 2000.
Given the Group’s increasing international dimen-sion, IBA seeks to employ young graduates andexperienced executives who are highly qualified,enthusiastic, willing to travel and stimulated by mul-ticultural challenges. Placing particular focus onindividual responsibility and teamwork, IBA offers aworking environment where employees mix withcolleagues from different cultures and backgrounds,having the scope to develop their initiative and real-ize their true potential.
IBA’s culture is based on decentralization of market-facing responsibilities while seeking to unify andcoordinate around common values, shared principlesand clearly defined management criteria, assisted byCorporate support functions. IBA’s culture alsoinvolves the opportunity of sharing in the company’scapital.
Successful employees at IBA are true team players whoenjoy shouldering responsibility. They are innovative,assertive and ready to accept new challenges with enthu-siasm for the latest technologies applied to the areas ofhealth and well-being. They are genuinely interested incontributing to the growth of the company.
Achievements 2000
Challenges in 2000 included consolidation of theHuman Resource function at Corporate level andthe creation of a well-functioning HumanResource network across the Group.
Work was started on putting into place a consistentand comprehensive compensation and benefits
program with the necessary supporting systems.Here, the objective is to attract, retain and developstaff in order to implement and reinforce IBA’sbusiness strategy. In the first phase, the new frame-work provides for a standardized benefits structure,grading system, consistent salary scales and amobility policy throughout theentire IBA Group.
A Group travel policy was alsointroduced at end of 2000 mak-ing for reduced travel costs,user-friendliness and increasedtravel comfort.
Work was also started onestablishing a consistent per-formance management systembased on in-depth analysis ofcurrent competencies andskills needed to ensure IBA’scapability to meet future mar-ket challenges.
Perspectives 2001
In February 2001, the First IBAManagement Convention tookplace, organized by the Communication Department,bringing together for the first time around 100 IBAmanagers from around the world. The objectives ofthis Convention were to get to know more about theother businesses of the Group and to reflect on IBA’smission and value statements, defining ways of sharingand living the IBA values in everyday business realityand thoughout the entire organization.
Human Resource projects in 2001 will focus on fur-ther analysis of skills and the detection of trainingneeds, introduction of performance measurementcriteria linked to financial reward and consolidationof policies and procedures throughout the Group.
35
HUMAN RESOURCES(
IBA 2000
R E S O U R C E S
“IBA 2001 - TOGETHER AS 1”
WAS THE THEME UNITING 100
DIFFERENT MANAGERS AT A
MANAGEMENT CONVENTION
DESIGNED TO SHARE THE IBA
VALUES AND DEFINE WAYS OF
COMMUNICATING AND LIVING
THESE VALUES IN EVERYDAY
REALITY.
Evolution of personnel
1996 931997 1161998 1501999 11502000 1234
Brought to you by Global Reports
KATHLEEN
HOFFMAN
Vice President,Environmental,
Health & SafetyAmerica Operations
Chicago, Illinois, USA
“ Our future is about continual improvement and
expansion of excellent standards to the new business.”
36 IBA 2000
G O O D C I
In 2000, we have successfully
integrated all of the individual IBA
facilities in America under a common
environmental, health and safety
(EH&S) strategy, ensuring
compliance with the “ best of the best”
standards and practices, minimizing
risks to their employees and the
communities around them.
This positions us well to further
improve our EH&S standards and
training programs, expanding them to
any other new operations, such as the
food pasteurization centers targeted for
America. Now that we have the core
EH&S programs already in place, our
future is about continual improvement
and expansion of excellent standards to
the new business.
Brought to you by Global Reports
Good Citizenship is one of IBA’s fundamental val-ues and the expression of IBA’s aim to best serve thelong-term interests of its organization, its people andthe public in general.
In addition to Certified Quality systems based onISO 9000 standards being in place throughout theIBA Group, several IBA experts participate in stan-dardization committees to develop new standardsand to exceed the expectations and regulations of thecommunity at large. In particular, IBA is committedto ensuring the safety of its employees and to pro-tecting the environment and community aroundthem.
IBA’s sense of responsibility goes beyond its companygates. During development, manufacturing, installa-tion, operation and the post-market maintenancesupport of its equipment and facilities, IBA deals withissues of public concern as well as safety aspects andpossible effects of the business on the environment.The IBA Quality Assurance and EnvironmentalHealth & Safety Departments work together toensure good practices are maintained at every stage ofthe business. This work ranges from materials andcomponents selection, equipment design and emis-sion controls to disposal and recycling issues, employ-ee training in quality assurance and safety procedures,acquiring facility licenses and permits, to on-goingcommunity awareness programs.
The activities of the different IBA Business Unitscomply fully with all local requirements. These maybe those of the United States Regulatory bodies (theFDA and USDA, for example) or the EuropeanCommission Directives (EEC Directives).
Achievements 2000
In the year 2000, several files were submitted toobtain clearance for marketing in the USA and/orassessment conformity with the CE marking of newequipment in the European Union.
CE marking was obtained for a number ofRhodotrons designed for medical device sterilizationand material ionization, a palladium-103 producingcyclotron and for several radioisotope-producing
cyclotrons. It should be noted that Rhodotrons areknown for their reduced impact on the environment.
In the area of dosimetry, FDA clearance wasobtained for the “Dose 1” dosimeter used to calibratethe dose emitted by therapeutic radiation treatmentequipment and for the “InViDos Patient DosimetryManagement System” used to measure patient dosesin radiation therapy.
With regard to IBA processing facilities in Europe,authorization was obtained to operate the extendedEtO (ethylene oxide) sterilization facility in Petit-Rechain, Belgium, and an exploitation permit granted for a new EtO sterilization chamber inHerentals, Belgium.
In the USA, a Grant of Inspection was obtained toallow food processing at the IBA Schaumburggamma facility, Illinois. The gamma irradiator at thenew Mexico facility was registered with the FDAand an environmental permit was awarded from theState of New Jersey for the new electron beam andX-ray facility for food and material irradiationscheduled to open in Bridgeport, mid-2001.
IBA experts participated in more than 27 standard-ization committees dealing with issues such as ster-ilization residuals, microbial methods, applyingquality systems to medical devices, dosimetry prac-tices in gamma irradiation facilities and improvingfood safety.
In March 2001, the 510(k) file was submitted to theFDA for clearance of the IBA Proton Therapy sys-tem for the treatment of localized tumors or otherdiseases susceptible to treatment by radiation.
Perspectives 2001
In 2001, new filings will be made to obtain FDAclearance and CE marking for various types ofequipment in the area of radioisotopes, dosimetrysystems, proton therapy, medical sterilization andfood ionization.
With regard to IBA facilities, filings will be made forradioisotope production centers as well as e-beam/X-ray sterilization facilities in Europe and the USA.
37
GO OD CI T IZENSH IP(
IBA 2000
T I Z E N S H I PBrought to you by Global Reports
IBA IS A WORLDWIDE GROUP IN TERMS OF BOTH GEOGRAPHICAL PRES-ENCE AND CUSTOMER PORTFOLIO. THE COMPANY’S UNIQUE EXPERTISE
DERIVES LARGELY FROM EXCHANGES BETWEEN TECHNICAL TEAMS LO-CATED IN SWEDEN, THE UNITED STATES, GERMANY AND BELGIUM,
WHICH COMPLEMENT THE GROUP’S OPERATIONAL AND MARKETING UNITS
ACROSS EUROPE, AMERICA AND ASIA. IN EARLY MARCH 2001, IBAHAD MORE THAN 1,300 EMPLOYEES WORKING IN 49 LOCATIONS IN 12COUNTRIES AROUND THE WORLD. THE GROUP’S WORLDWIDE HEADQUAR-
TERS ARE LOCATED IN LOUVAIN-LA-NEUVE, BELGIUM.
38 IBA 2000
IBA IN THE WORLD(
INDUSTRIALTHE STERILIZATION & IONIZATION
BUSINESS IS HEADQUARTERED
IN CHICAGO FOR ITS AMERICA
OPERATIONS, AND IN HERENTALS,
BELGIUM FOR THE REST OF THE
WORLD (EMEAA = EUROPE,
MIDDLE EAST, AFRICA, ASIA).
ITS EXTENSIVE NETWORK OF
SERVICE CENTERS CONSISTS OF
27 FACILITIES LOCATED MAINLY IN
THE USA, CANADA AND MEXICO
(AMERICA OPERATIONS) AND FOR
THE REST OF THE WORLD 10 CEN-
TERS BASED IN EUROPE (FRANCE,
GERMANY, BELGIUM, HOLLAND,
GREAT BRITAIN) WITH 2 CENTERS
LOCATED IN THAILAND. THIS NET-
WORK OF 37 SERVICE CENTERS IS
THE LARGEST IN THE WORLD AND
THE ONLY ONE PRESENT ON BOTH
SIDES OF THE ATLANTIC. THIS
CHARACTERISTIC ALLOWS IBA TO
ACCOMPANY ITS MAJOR MULTINA-
TIONAL CUSTOMERS ANYWHERE IN
THE WORLD.
IBA WORLDWIDE HEADQUARTERS
IBA INDUSTRIAL (BUSINESS UNITS AMERICA OPERATIONS AND STERILIZATION & IONIZATION EMEAA)
IBA MEDICAL (BUSINESS UNITS ADVANCED RADIOTHERAPY AND RADIOISOTOPES)
IBA TECHNOLOGY GROUP
I B A I N T HMEDICALTHE HEADQUARTERS FOR THE ADVANCED RADIOTHERAPY BUSINESS ARE IN UPPSALA, SWEDEN, with offices in Schwarzenbruck, Germany
and Memphis, USA. Proton therapy systems developed in Belgium have already been installed in Japan and the
United States. IBA is currently negotiating the delivery of other new proton therapy systems in America, Asia and
Europe. The Racetrack advanced radiotherapy system produced in Sweden is meeting with strong interest, as evi-
denced by the recent sales of this type of equipment to China. The Group’s German and Swedish dosimetry special-
ists supply customers across the globe.
Brought to you by Global Reports
39 IBA 2000
TECHNOLOGYGROUPTHE HEADQUARTERS FOR THE
BUSINESS UNIT TECHNOLOGY
GROUP ARE BASED IN LOUVAIN-
LA-NEUVE, BELGIUM AND CON-
STITUTE THE HUB OF IBA’S
TECHNOLOGICAL EXPERTISE WITH
PRODUCTION AND DEVELOPMENT
FACILITIES IN LONG ISLAND,
NEW YORK AND IN UPPSALA,
SWEDEN, AND A UNIT OF
SPECIALIZED MULTI-TECHNOLOGY
ENGINEERS IN CHICAGO, USA.
COMPRISING AROUND 100
ENGINEERS, IBA TECHNOLOGY
GROUP DEVELOPS EQUIPMENT,
MANUFACTURES AND INSTALLS
ACCELERATORS AND PERIPHERAL
SYSTEMS INCLUDING PATIENT OR
PRODUCT HANDLING DEVICES,
PROVIDING TECHNICAL TRAINING
AND COMPREHENSIVE DOCUMEN-
TATION. IN PARTICULAR, IBA
TECHNOLOGY GROUP EXPERTS
MANAGE TURN-KEY PROJECTS
FROM CONCEPTION TO INSTALLA-
TION OFFERING A FULL AFTER-
SALES SERVICE, AIMING TO
LEARN ABOUT AND BETTER
SATISFY CUSTOMER NEEDS VIA
THE CREATION AND PROMOTION
OF USERS MEETINGS ACROSS
THE GLOBE.
H E W O R L DMEDICAL
THE RADIOISOTOPES BUSINESS UNIT IS HEADQUARTERED IN LOUVAIN-LA-NEUVE, BELGIUM. IBA is currently installing particle accelerators for the produc-
tion of radioisotopes used in medical imaging throughout the world, as shown by the recent orders and installations in Korea, France
and Japan. Following the acquisition of Eastern Isotopes Inc. at the beginning of 2001, IBA now owns six radiopharmacies and two new
FDG production units in Washington, DC and Chicago, which complement the centers in Milan and Lyons. IBA intends to develop its
presence in this high-potential market, particularly in the USA. Taking into account both cyclotrons producing palladium-103 used in
brachytherapy and accelerators dedicated to medical imaging, IBA Radioisotopes now has an installed pool of some 100 units
around the world.
Brought to you by Global Reports
40 IBA 2000
S H A R E H O L D E R S & T H E S T O C K(
The IBA share
The IBA share is quoted on the continuous marketof the Brussels Stock Exchange. It was introducedonto the Stock Exchange on June 22, 1998 at an ini-
tial offer price of 11.90 EUR(adjusted for a 5-to-1 stocksplit in June 1999).
It entered the BEL20 indexin 1999 and the Next 150index when it was created in2000.
At March 15, 2000, the com-pany had no outstandingconvertible bonds or bondswith warrants. Warrantsallowing the creation of427,000 new shares wereissued in 2000 in favor of IBApersonnel. The total number
of warrants issued in favor of the personnel but notexercised amounted to 790,507 at the end of 2000.
Dividend policy
IBA’s growth potential in its various businesses isconsiderable, creating significant needs for capitalto finance the major investments that would guar-antee future growth. It is the domain of the Boardof Directors to propose the amount of any possibledividend to the Annual General Meeting ofShareholders, giving due consideration to theresources required to finance the company’s futuregrowth.
Judging that it is in the company’s best interests toretain a maximum of liquidity to fuel its growth,the Board of Directors has decided not to proposea dividend for fiscal 2000.
Share price (1) Maximum Minimum Close Averagedaily
volume19981st Quarter initial public offering 06/22/19982nd Quarter 22.81 21.29 22.81 515,625*3rd Quarter 41.60 24.79 31.33 40,1234th Quarter 41.50 28.51 39.56 15,147
19991st Quarter 61.00 37.20 54.54 34,5352nd Quarter 65.90 54.00 60.75 25,4023rd Quarter 63.50 51.25 51.25 22,7544th quarter 60.00 50.30 54.80 41,084
20001st Quarter 55.00 42.00 44.00 57,3052nd Quarter 47.40 26.40 27.80 40,5163rd Quarter 30.50 22.87 23.30 32,9594th Quarter 28.50 23.10 24.50 18,942
20011st Quarter (2) 29.10 24.00 25.80 22,707
(1) In EUR (fixed conversion rate: 1 EUR = 40.3399 BEF) adjusted for a 5-for-1 stock split in June 1999.(2) Until March 7, 2001.* (2 days of quotation)
IBABEL 20
0
10
20
30
01
/04
/00
02
/04
/00
03
/04
/00
04
/04
/00
05
/04
/00
06
/04
/00
07
/04
/00
08
/04
/00
09
/04
/00
10
/04
/00
11
/04
/00
12
/04
/01
01
/04
/01
02
/04
/01
03
/04
/01
40
50
60
Brought to you by Global Reports
41 IBA 2000
EXC H A N G E
Figures per share 1997 1998 1999 2000No. of shares at 12/31 (1) 14,881,190 16,909,590 20,494,825 24,369,618
Operating result before goodwill amortization 0.19 0.60 1.40 1.50Operating result after goodwill amortization 0.19 0.30 1.10 0.98Net current result before goodwill amortization 0.21 0.44 0.84 0.95
Published net result 0.21 0.11 0.17 0.29Gross dividend 0.20 - - -Shareholder equity 0.36 1.50 10.23 16.03Share price at year end NS 39.56 54.80 24.50Return on share price for year (in %) NS 232.5% 38.5% -55.3%
Market ratios based on end pricePrice Earnings Ratio (PER), based on net current result before goodwill amortization NS 89.31 65.10 25.66Price Cash Flow (PCF) NS 101.44 49.37 14.10Price Book Value (PBV) NS 26.44 5.36 1.53
Notes: Figures based on the consolidated accounts of the company since 1998 and on those of the parent company in 1997.IBA had no subsidiaries and filed no consolidated accounts before 1998.The calculation is based on the number of existing shares at 12/31.(1) No warrants or convertibles exist which could reduce the result per share, apart from 790,507 warrants issued in favour of the personnel
at December 31, 2000.
The capital structure of the company has evolved as follows for the fiscal year:
Shareholders At 12/31/1999 At 12/31/2000 Fully DilutedNo. of shares % No. of shares % No. of shares %
Belgian Anchorage SA (1)(3) 6,820,840 33.3% 6,840,840 28.1% 6,840,840 27.2%Belgian Leverage (2)(3) - - 2,300,000 9.4% 2,300,000 9.1%Tenet Healthcare (3) 2,555,225 12.5% - - - -Sopartec (3) 941,185 4.6% 941,185 3.9% 941,185 3.7%IRE (Institut des Radioéléments) (3) 827,200 4.0% 827,200 3.4% 827,200 3.3%UCL (Université Catholique de Louvain) (3) 532,885 2.6% 532,885 2.2% 532,885 2.1%
Shareholders acting together - - 11,442,110 47.0% 11,442,110 45.5%
IBA Investments SCRL (4) - - 399,327 1.6% 399,327 1.6%Float 8,817,490 43.0% 12,528,181 51.4% 13,318,688 52.9%
TOTAL 20,494,825 100% 24,369,618 100% 25,160,125 100%(1) Belgian Anchorage is a company created and wholly owned by IBA Management and certain IBA employees(2) Belgian Leverage is a fully owned subsidiary of Belgian Anchorage.(3) Transparency declaration of June 6, 2000.(4) Number of actions held at December 31, 2000. At June 6, 2000, IBA Investments held 255,225 IBA shares.
Shareholders’ agendaDate
2001 Annual General Meeting May 9, 2001 at 10.00Publication of half-yearly results ending June 30, 2001 September 14, 2001Publication of annual results ending December 31, 2001 March 15, 20022002 Annual General Meeting May 8, 2002 at 10.00
Key figures per share and market ratios
Shareholders
Brought to you by Global Reports
BOARD OF DIRECTORS(
Independent Directors
Arthur JANTA-POLCZYNSKIDirector since May 2000.
Born: 1949.
Managing Director of Russell Reynolds Associates, Belgium.
Commercial engineer, University of Solvay, Belgium and MBA from
Harvard Business School, USA.
Jean STEPHENNEDirector since February 2000.
Born: 1949.
President and General Manager of the Vaccines Division of
SmithKline Beecham Biologicals, Belgium.
Jacques de VAUCLEROYDirector since February 2000.
Represented Banque Bruxelles Lambert, former IBA director,
since 1997.
Born: 1961. General Manager, member of the Executive Committee
of Banque Bruxelles Lambert.
Peter VERMEERENDirector since February 2000.
Born: 1940.
President of the Association of the Radiopharmaceuticals and
Equipment Industry (ARPES).
Other important offices: Member of the EANM Strategy and the
“SNM Linking Committee”.
Executive Directors
Pierre MOTTETExecutive Director since February 2000.
Born: 1961. Chairman of the Executive and Strategic Committee.
Nominated “1997 Manager of the Year” by Trends-Tendances.
Jean-Claude DELOBEL CEO since March 2000.
Born: 1954.
Previously General Manager of Cockerill Sambre, Belgium.
Yves JONGENExecutive Director since 1991.
Born: 1948. Founder of IBA in 1986 and currently Chief Research
Officer.
Nominated “1997 Manager of the Year” by Trends-Tendances.
Eric de LAMOTTEExecutive Director since February 2000.
Born: 1956. Formerly Chief Financial Officer at IBA, 1991- June 2000.
OTHER DIRECTORS
Philippe de WOOT de TRIXHEChairman of the Board of Directors since 1986.
Born: 1932. Professor emeritus of the Catholic University of Louvain
(UCL).
Other important offices: Director of Glaceries de Saint-Roch,
Alcatel-Etca, and Bull Belgium.
National Institute of Radioelements (IRE)Represented by Nicole DESTEXHE since 1991.
Born: 1953. IRE Financial Director.
Member of the Institute of Chartered Accountants.
Olivier RALET Director since June 2000 replacing Tenet Healthcare Corporation.
Born: 1957. Degree in law.
Business Development Director for Atenor Group SA, Belgium.
Ferdinand d’OULTREMONTDirector since 1994.
Born: 1931. Doctor of law, degrees in political science, social science
and applied economic sciences.
Other important offices: Director of Sopartec S.A.
Scientific Advisor
Professor Jean VERVIERDoctor of physical sciences (UCL), Professor of science at UCL
(Institute of Nuclear Physics).
Other important offices: President of the Board of Directors of the
Center for Cyclotron Research since 1986.
Company Auditors
Salustro Triest Vleck S.C.P.R.L, Brussels(formerly Nevens & Co)Represented by Mr André Clybouw.
PricewaterhouseCoopers, Reviseurs d’Entreprises S.C.C.R.L.,Sint-Stevens-WoluweRepresented by Mr Philippe Barbier.
Composition of the Board of Directorsat March 31, 2001
42 IBA 2000Brought to you by Global Reports
44 IBA 2000
Design and production: ConcertoPhotography: Atofina, Paul Coertens, John Horner, Photodisc, Jacky Delorme, Sture Ekendahl, Braune Photodesign, TonyStone.
Printed in Belgium by Dereume Printing
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2 IBA 2000 - Financial report
2000 MANAGEMENT REPORT
2000 CONSOLIDATED RESULTS
The year 2000 results reflect for the first time in a full year
the integration of the entities acquired during 1999, mainly
in the fields of industrial Sterilization and Ionization, that
today represent the majority of IBA’s consolidated sales.
In 2000, consolidated sales amounted to 236.1 million
EUR, representing a growth of 67% in comparison to
141.6 million EUR achieved in 1999. This growth reflects
to a large extent the acquisitions made during the 1999
financial year. Pro forma, and at a comparable EUR/USD
exchange rate, the Group sales growth would have been
10%.
The operating result before amortization of assets and
goodwill (EBITDA) amounted to 69.6 million EUR,
representing a growth of 59% when compared to 1999.
The Company’s Earnings before interest, tax and goodwill
amortization (EBIT) stood at 36.6 million EUR, increas-
ing by 27% in comparison to 28.7 million EUR recorded
in 1999.
After amortization of the acquisition goodwill, which in
2000 amounted to 12.6 million EUR, the operating result
stood at 24.0 million EUR. The acquisition goodwill,
which represents the difference between the cost of the
acquisitions made in 1999 and 2000 and the net book value
of these companies at their acquisition date, is written off,
following a decision of the Board of Directors, over a peri-
od of 20 years.
The consolidated financial result is negative by 10.4 million
EUR compared to 7.1 million EUR in 1999. The evolution
of the Group’s financial structure and perimeter since the
beginning of 1999 makes these figures difficult to compare.
In fact, IBA’s consolidated financial result for the first half
of 1999 was positive before being affected by the financing
of the acquisitions made in the middle of the financial year.
The 2000 financial result has been affected by the amount
of debt in US dollars, the currency used for the majority of
the acquisitions, whereas the surplus cashflow stemming
from the capital increase of January 2000 is denominated in
Euros. It should be noted that the financial income for the
financial year does not include the latent gains due to
appreciation of the US dollar in comparison to the EUR
with regard to the Group’s net investment in the American
entities.
The extraordinary result, negative by 6.1 million EUR,
mainly corresponds to the costs relating to the capital
increase of January 2000 (5.3 million EUR).
The net current result, that is excluding the impact of
extraordinary costs (after adjustment for tax savings on
these) and amortization of acquisition goodwill,
AF TER THE MAJOR CHANGES EXPERIENCED BY IBA IN 1999, THE FISCAL YEAR 2000 HAS BEEN
A YEAR OF CONSOLIDATION, LARGELY DEVOTED TO THE TASK OF IMPLEMENTING AND
STRENGTHENING THE ORGANIZATION AND TOOLS ENABLING IBA TO EMBARK UPON A NEW
PHASE OF ITS GROWTH BASED ON SOLID FOUNDATIONS.THANKS TO THE ACQUISITIONS ACCOMPLISHED IN THE LAST FEW YEARS, THE GROUP IS NOW A
WORLD LEADER IN ALL ITS MARKETS, AND INTENDS TO CONTINUE ITS RATIONALIZATION AND
OP TIMIZATION WORK IN ORDER TO EXTRACT MAXIMUM ADVANTAGE FROM THIS UNIQUE COM-PETITIVE POSITION. IBA’S TECHNOLOGICAL EXPERTISE AND MASTERY, ALLIED WITH IN-DEP TH
KNOWLEDGE OF ITS MARKETS AND THE NEEDS OF ITS CUSTOMERS, WILL CONTINUE, AS IN THE
PAST, TO BE AT THE ROOT OF THE GROUP ’S DEVELOPMENTS WITH A VIEW TO ACHIEVING AMBI-TIOUS, SELECTIVE AND PROFITABLE GROWTH.
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3 IBA 2000 - Financial report
increased by 35% to 23.3 million EUR. The net current
result per share, calculated on the total number of shares
issued at the end of the financial year, stood at 0.955
EUR, indicatng a growth of 13%.
After taxes, goodwill amortization, extraordinary items
and contributions from the companies brought into
equivalence, the net result Group share was up 106% to
7.0 million EUR in 2000. The net current result per share
stood at EUR 0.29 compared to 0.17 EUR in 1999.
The Group’s financial structure was considerably rein-
forced with the capital increase of January 2000, which
has enabled the Group to return to its moderate debt
ratios compatible with the Group’s target of sustained
growth (net financial debt ratio over shareholders’ equity
equal to 35% at the end of 2000 versus 108% at the end
of 1999).
Furthermore, the short-term financial US dollar debt,
contracted for the acquisition of SteriGenics in 1999, was
replaced in January 2000 by a syndicated loan of 5 mil-
lion US dollars, with a 5-year maturity period, thus
enabling the Group to improve its liquidity ratios and
extend its bank relations.
The operational cash flow generated in 2000 was afflict-
ed by an unfavourable development in the need for work-
ing capital linked to the Group’s funding of a large part
of its production work-in-process.
Furthermore, sustained investments, Research &
Development expenditure, and finally the shares taken in
RadioMed Corp., which was incorporated by the equity
method pro rata temporis, and in the Proton Therapy
Corporation of America Inc (PTCA), have led to invest-
ments totalling 66.0 million EUR for the 2000 financial
year. These sizeable outlays explain the negative available
cash flow over the whole of the financial year.
IBA S.A. STATUTORY ACCOUNTS AND
ALLOCATION OF THE RESULT
The net non-consolidated result of Ion Beam
Applications S.A. stands at a loss of 5.1 million EUR.
This result is difficult to compare with the result for fis-
cal 1999, which was negative by 0.3 million EUR, inso-
far as IBA has strengthened its organizational structure in
coherence with its status as the parent company of the
Group. The principal organizational changes made dur-
ing the financial year will be itemized at a later stage in
this report. The Board of Directors has confirmed that
the accountancy methods should be continued since they
are fully justified by the Company’s prospects.
The Board of Directors will be proposing to the General
Assembly, in view of the major investments required for
the Group’s growth in the years ahead, not to distribute a
dividend for the Financial Year ending December 31,
2000 and to allocate the loss of the financial year to prof-
it to be carried forward.
COMPARISON
OF THE LAST FIVE YEARS
The strong growth strategy implemented by IBA in the
last few years resulted in a powerful progression of the
principal financial figures, as shown in the tables below.
From 1996 to 2000, IBA’s sales figure has been multiplied
by 12, growing almost 86% per year. During the same
period, the operating result before goodwill amortization
and the net current result have been multiplied respec-
tively by 22 and 42, reflecting an average annual growth
rate of 117% and 154%.
Thanks mainly to the capital increases, the Group’s equi-
ty has at the same time grown from 5 million EUR to
391 million EUR.
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4 IBA 2000 - Financial report
ANALYSIS OF THE GROUP’S ACTIVITY
IN 2000 PER MARKET
IBA has set itself the mission of offering customers
worldwide innovative solutions in the fields of health and
well-being. IBA’s target customers can be divided into
two principal markets composed of the Group’s activities:
The Industrial sector, which includes customers from
industrial companies in the fields of medical devices and
food products, and of diverse products ranging from elec-
tronics to advanced materials.
The Medical sector, composed of customers active in the
world of health, including hospitals, producers and dis-
tributors of products for nuclear medicine, imaging and
radiotherapy centers, and research centers.
The Industrial sector includes the activities of the IBA
Business Units operating services in the areas of industri-
al Sterilization & Ionization (“S&I America Operations”
and “S&I Europe, Middle-East, Africa, & Asia”) and the
sales of equipment used for industrial applications (elec-
tron accelerators designed and produced by the
“Technology Group” Business Unit).
The Medical sector comprises all the service activities and
equipment sales proposed to the health market. This
includes the activities of the Business Unit
“Radioisotopes”, responsible for the sales of cyclotrons
designed to produce radioisotopes used both for medical
imaging and brachytherapy, and for the production and
distribution of radioisotopes, in particular FDG, a recent-
ly developed activity involving the acquisition in February
2001 of the American company, Eastern Isotopes. The
other field of Group activity in the Medical Sector is
under the responsibility of the Business Unit “Advanced
Radiotherapy”, and includes the sale of proton therapy
equipment, conventional radiotherapy and dosimetry
equipment.
0
50000
100000
150000
200000
250000
0099989796
SALES
(IN 000 EUR)
0
5000
10000
15000
20000
25000
30000
35000
40000
0099989796
OPERATING RESULT(BEFORE GOODWILL AMORTIZATION)
(IN 000 EUR)
0,0
0,2
0,4
0,6
0,8
1,0
0099989796
NET CURRENT RESULT PER SHARE
(IN EUR)
0
50000
100000
150000
200000
250000
300000
350000
400000
0099989796
EQUITY
(IN EUR 000)
COMPARISON OF THE LAST FIVE YEARS
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5 IBA 2000 - Financial report
The Business Unit “Technology Group” is responsible for
producing cyclotrons and proton therapy equipment.
The breakdown of IBA’s consolidated sales figure per
market between the Industrial sector and the Medical
sector is indicated in the table below. These figures are
then commented upon in the individual commentaries
per activity.
BREAKDOWN OF SALES(in 000 EUR)
2000 1999 Variation 00/99in%
Industrial sector 163,605 93,056 76%Medical sector 72,509 48,591 49%Group total 236,115 141,647 67%
Industrial sector
This sector is the most important contributor to the
Group’s consolidated sales figure, amounting to
163.6 million EUR or 69% of consolidated sales in 2000
compared to 93.1 million EUR in 1999. This progression
has not been achieved with a constant perimeter since it
mainly results from the consolidation of Griffith Micro
Science as of May 1, 1999 and SteriGenics from July 1,
1999.
The essential contribution to this sector comes from the
Sterilization & Ionization services, the major part of which
is realized by the Business Unit “America Operations”,
which comprises four activities:
- sterilization of medical equipment, predominant in
terms of sales figures,
- analytical laboratory services,
- cold food pasteurization,
- enhancement of material characteristics.
For this Business Unit, the year 2000 was marked by
intensified competitive pressure, resulting from the
installation by competitors in certain regions of the
United States of new medical equipment sterilization
capacities, which has led to reduced margins. The
Business Unit has however successfully concluded the
operational and administrative integration of the North
American entities of Griffith and SteriGenics.
In the area of food safety, where all forecast studies con-
firm the major market potential represented by cold pas-
teurization of food using X-rays or e-beam, IBA made
considerable commercial and marketing investments in
2000, constituting a dedicated team and forging the part-
nership with Ecolab for marketing cold food pasteuriza-
tion services using X-rays or electron beam. The “Food
Safety” Division has also set up, at the site of the RDI
subsidiary at Long Island, NY, a test center enabling
industrial food producers to test X-ray pasteurization on
their products. This center has permitted validation of the
quality of IBA’s technology in this promising new field.
These voluntarist efforts have inevitably weighed on the
operating result since no significant income is expected in
this field before at least two to three years. These efforts
are, however, considered indispensable for developing the
market and preparing the Group to take a major position
in this market. These efforts were substantiated in part at
the beginning of 2001 by the agreement signed with
AmeriCold Logistics for construction of a food pasteur-
ization center within a cold storage plant, the largest in
the USA, in the state of Missouri.
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6 IBA 2000 - Financial report
Significant investments have been made in industrial
Sterilization & Ionization not only in the USA, but also
in Europe and Asia, with the opening in Thailand of a
center offering the two technologies gamma radiation
and electron beam radiation.
Sales of equipment (Rhodotrons produced by the
Louvain-la-Neuve site and Dynamitrons constructed by
the Radiation Dynamics Inc., acquired in 1999) were on
the other hand down on 1999, which has led to a review
of the marketing organization. This situation should be
energized by the arrival of Betaline, a self-shielded medi-
um-capacity electron accelerator, intended for industrial
customers wishing to integrate irradiation into their
manufacturing process, in the areas of food-processing,
disposable medical products and material enhancement.
The Betaline is scheduled to be launched during 2001
and represents an extremely interesting complement to
IBA’s current range of solutions.
Medical sector
The Group’s activities in the Medical sector generated a
sales figure of 72.5 million EUR, up nearly 50% on 1999
(48.6 million EUR). They consist at this time essentially
of equipment sales, the part achieved by the production
and sale of radioisotopes remaining marginal for 2000.
Radiotherapy
In the area of cancer radiotherapy, the year 2000 saw a
continuation of IBA’s major efforts to finalize the devel-
opment of the software for the proton therapy system sold
to the Massachusetts General Hospital in Boston. These
efforts, which mobilized significant Group resources,
enabled completion of the file for clearance of the system,
which was then submitted to the Food and Drug
Administration (FDA), whose approval is a sine qua non
for the commercialization of the system in the USA. The
system developed by IBA has attracted considerable inter-
est over a long period in the international medical com-
munity and several proton therapy center projects, in the
USA and the rest of the world, are currently being active-
ly negotiated by IBA. Orders for the proton therapy sys-
tem constitute a major factor of the Group’s immediate
growth, and the acquisition of PTCA, which will be cov-
ered in greater detail at a later stage of this Management
Report, enables IBA to position itself as a potential part-
ner for the large American medical institutions.
The Business Unit “Advanced Radiotherapy” also experi-
enced considerable marketing success with the sale of
three top-of-the-range conventional MM 50 radiothera-
py systems to a hospital in mainland China.
In the field of dosimetry, in which IBA is a world leader
with about a third of the market following the acquisition
in 1999 of Wellhöfer, activities were sustained with a high
level of new orders.
Radioisotopes
The Business Unit “Radioisotopes” experienced a very
good year in terms of new equipment orders, including
the sale of a Cyclone 30 to the Korean Cancer Center
Hospital and several PET cyclotrons.
As announced, IBA has also intensified its downstream
development efforts in the production and distribution of
radioisotopes, more particularly of FDG or F18 fluo-
rodeoxyglucose, which is the most frequently used radio-
pharmaceutical in Positron Emission Tomography
(PET), a medical imaging technique in full expansion.
The FDG production centers in Lyons and Milan, the
construction of which was decided in 1999, will soon be
operational. IBA is waiting for permission to market
FDG in the European Community.
However, the major and very recent development in this
field is IBA’s acquisition, in February 2001, of an 80%
share in Eastern Isotopes, the American leader in the pro-
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7 IBA 2000 - Financial report
duction and distribution of FDG, the market for which in
the USA is hugely expanding due to the rapid increase in
the number of reimbursed applications. Based in Sterling,
Virginia, Eastern Isotopes owns six distribution centers
for pharmaceutical products used in positron emission
tomography and single photon emission computed
tomography (or SPECT). With more than 100 employ-
ees, Eastern Isotopes intends to accelerate its development
with the aid of technological and financial support from
IBA, scheduled to deliver Eastern Isotopes several
cyclotrons starting this year. Eastern Isotopes will be
entirely consolidated into the Group’s accounts for the
2001 Financial Year. IBA is holding an option to buy the
balance of the Eastern Isotopes capital in a few years time.
The project of cooperation with Syncor for FDG distribu-
tion, already announced in February 2000, has not materi-
alized, since the two partners were unable to reach agree-
ment on the practical conditions of their partnership.
In the field of brachytherapy, development work for a new
machine intended to produce palladium 103 (Pd-103) was
continued throughout the financial year. This cyclotron,
the expected performance of which is far higher than that
of the previous generation, will be installed in a dedicated
center in Fleurus, Belgium, and will be operated in part-
nership with the Institute of Radio-elements (IRE). The
cyclotron should be operational at the beginning of 2002.
Still in the field of brachytherapy, IBA acquired during
the financial year 2000 a share, now at 46.1%, in the cap-
ital of the company RadioMed. This investment is the
subject of specific comment at a later stage.
SHARES ACQUIRED IN THE COURSE
OF THE FINANCIAL YEAR
Shares acquired in RadioMed Corporation
During the second half of 2000, IBA acquired a minority
share, progressively increased to 46.1%, in the capital of
RadioMed Corporation, a young company based in
Massachussetts, near Boston. The revolutionary concept
invented and patented by RadioMed consists of a new
generation of radioactive implants in the form of a wire of
palladium produced by the irradiation of a wire of rhodi-
um by a cyclotron. RadioMed was granted FDA approval
for its first product intended to treat cancer of the prostate
at the end of the year 2000. This acquisition represents a
major strategic downstream development for IBA, which
has adapted the cyclotron to be installed in Fleurus to
meet the particular requirements of this project. IBA is
holding options enabling it to take majority control and
finally to buy all the shares of RadioMed. RadioMed has
been incorporated in the IBA accounts by the equity
method since August 1, 2000, income being taken into
account according to the successive percentages of the
IBA participation.
Acquisition of PTCA and transactions concluded with
Tenet Healthcare Corporation in May 2000
On May 31, 2000, IBA bought from the Tenet Healthcare
Corporation (Tenet) the activities exercised by the Proton
Therapy Corporation of America (PTCA), a Tenet sub-
sidiary. These had previously been transferred to a new
company that took the name PTCA.
These activities aimed to develop proton therapy centers
for cancer treatment in the USA, based on the use of
equipment designed and manufactured by IBA. In this
context, PCTA had entered into a contract with IBA in
1997 concerning the delivery of three proton therapy sys-
tems, and benefitted from exclusivity in the USA for the
sale of the proton therapy equipment built by IBA. This
contract was de facto cancelled by the acquisition of
PTCA, and the exclusivity clause restricting IBA’s mar-
ket potential suppressed for the same reason.
The transaction concluded between IBA and Tenet also
included the acquisition by IBA Investments SCRL (an
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8 IBA 2000 - Financial report
indirect subsidiary of IBA SA) of about 1% of IBA’s cap-
ital at a below-market rate, and the payment by Tenet of
a contractual contribution intended to cover PTCA’s
operating expenses until the end of 2001, justified by the
fact that PTCA, being a developing organization, would
not be generating income prior to the operational start-
up of a proton therapy center.
This contribution, amounting to a total of 3.4 million
EUR, is included in the results pro rata temporis over the
period June 1, 2000 to December 31, 2001. This has
enabled compensation of the operating costs for PCTA
in 2000 to the tune of 1.25 million EUR, listed in the
accounts as “Other operating income”.
Concomitant with these operations, Tenet has concluded
an agreement with IBA’s shareholder of reference Belgian
Anchorage to sell the remainder of its share in IBA
(about 10% of the capital), the transferability of which
was restricted by shareholder agreements binding Tenet
to the other members of IBA’s stable shareholders. The
IBA Board of Directors has been kept informed of the
discussions between Belgian Anchorage and Tenet, and
of Tenet’s requirements in terms of the operational
timetable.
The Board of Directors, that includes independent direc-
tors, judged that the transaction between IBA and Tenet
was concordant with the Company’s strategy and in its
best interests, and approved this operation unanimously.
Thus, the suppression of the exclusivity clause binding
IBA to PTCA/Tenet has already enabled IBA to secure
promising contracts with university hospitals featuring
among the most reputable in the USA, with a view to
developing proton therapy centers in partnership with
them. Nevertheless, the implementation of these projects
depends on the approval by the American Food and Drug
Administration (FDA) of IBA’s proton therapy system,
the prototype of which is nearing the end of its installa-
tion at the Massachussetts General Hospital, a hospital
associated with Harvard University. The recent develop-
ments in proton therapy, and in particular the completion
of the file for FDA approval which enabled its submission
to be made at the beginning of March 2001, support the
validity of the Group’s development strategy in this field.
Research & Development
At the heart of IBA’s strategy, which is based on the devel-
opment of its unequalled expertise in particle accelerator
technology, Research & Development was the subject of
even more sustained efforts in 2000. R&D costs thus
amounted to 20.8 million EUR in comparison with
11.9 million EUR in 1999 (before capitalization). These
costs covered not only the entire range of existing Group
products and processes, with a view to enhancing them
still further and thus preserving IBA’s leadership position,
but also the development of innovative solutions. It
should however be remembered that IBA does not carry
out any fundamental research, and that its R&D efforts
aim to focus on an ever more competitive commercial
offering and source of added value for both the Group and
its customers.
The main effort in R&D was focused, however, as men-
tioned earlier, on the continued development of the pro-
ton therapy system at the Massachusetts General
Hospital, which occupied numerous internal and external
resources. The Board of Directors judged that the R&D
efforts undertaken by IBA in the field of proton therapy
and the allocation as assets of the expenses incurred in
this context (for a net amount of 9.9 million EUR for the
financial year 2000, bringing the total assets to 14.7 mil-
lion EUR at December 31, 2000, in keeping with the
Group’s accounting rules, were justified by its confidence
both in the prospects of this market and in the particular
advantages that IBA has for making a profitable sale.
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9 IBA 2000 - Financial report
Organization of the Group
During fiscal 2000, the Group was completely reorganized.
The Group adopted a decentralized structure by means of
Business Units, each addressing specific market segments
with an offering combining services and equipment as
required. The Group comprises a total of five Business
Units:
- “S&I America Operations”, headquartered in Chicago,
USA
- “S&I Europe, Middle-East, Africa & Asia”, based in
Herentals, Belgium
- “Advanced Radiotherapy”, based in Uppsala, Sweden
- “Radioisotopes” and “Technology Group”, both based
in Louvain-la-Neuve, Belgium.
Jean-Claude Delobel, the former General Manager of
Cockerill Sambre, joined the Group in March 2000 as
Chief Executive Officer and Managing Director. The
Presidents of the Business Units are responsible to the
Chief Executive Officer for their entity’s performance.
Furthermore, the support functions at Corporate level,
(finance, controlling, information systems, human
resources, business development, communication and
research) are assumed by a select team of managers who
also report to the CEO.
The Executive & Strategic Committee consists of the
four Managing Directors: Pierre Mottet, Chairman of
the Executive & Strategic Committee, Jean-Claude
Delobel, CEO, Yves Jongen, the founder of IBA and
Chief Research Officer, and Eric de Lamotte, who was
Chief Financial Officer until June 2000.
Corporate Governance
Concerned to apply recent recommendations in terms of
Corporate Governance, the Company has statutorily
imposed a balance within the Board of Directors between
independent directors, executive directors, and directors
representing the shareholders.
The Board of Directors met on six occasions in the
course of the year 2000, and its composition is given in
the documents appended to this report.
Remuneration for exceptional service rendered by the
statutory auditors
The college of auditors, composed of the companies
PricewaterhouseCoopers Reviseurs d'Entreprises
S.C.C.R.L. and Nevens & Co. S.C.P.R.L., accom-
plished in the course of the financial year missions of
advice and assistance, mainly in the context of the
adoption of an international accountancy referential,
and was remunerated by emoluments of 111,000 EUR.
A company with which one of the auditors has profes-
sional connections provided fiscal advice that was
remunerated by fees amounting to 188,000 EUR.
Shareholders and warrants
In January 2000, in the context of the capital authorized
by the extraordinary General Meeting of May 12, 1999,
IBA proceeded with an increase in capital for an amount
of 170.2 million EUR by issuing 3,700,000 shares at
46 EUR. The priority right of existing shareholders was
suppressed, but they benefited from a right of priority
allocation equal to one new share per five shares held.
This operation led to an increase of the public shares in
IBA’s capital, with the company’s float now representing
around 52%.
The distribution of voting rights among the shareholders
of reference who are party to a shareholders’ pact was mod-
ified in June 2000 by the complete departure from IBA’s
capital of the Tenet Healthcare Corporation (Tenet), an
American company that became an IBA shareholder in
1997. This modification in IBA’s shareholder structure did
not have any major consequences on the weight of the
leading shareholders within IBA, the main part of the
shares relinquished by Tenet having been acquired by
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10 IBA 2000 - Financial report
Belgian Anchorage, the holding company composed of the
founders and employees of IBA, and by the IRE, another
member of the shareholders’ pact with Tenet.
This operation and its context have been described in
greater detail earlier.
Following this operation, the distribution of IBA’s capi-
tal, established from the latest Transparency Declaration
dated June 6, 2000, was as follows:
Distribution of capital Actions %
Belgian Anchorage / Belgian Leverage (1) 9,140,840 37.5%Catholic University of Leuven (UCL) (1) 532,885 2.2%Sopartec (1) 941,185 3.9%Institut National des Radioéléments (1) 827,200 3.4%(Shareholders acting together) 11,442,110 47.0%IBA Investments SCRL (2) 399,327 1.6%Public 12,528,181 51.4%Total (at December 31, 2000) 24,369,618 100.0%
(1) Transparency Declaration at June 6, 2000(2) Number of shares held at December 31, 2000. At June 6, 2000, IBA Investments
held 255,225 IBA shares
A warrants plan (subscription rights) reserved for IBA per-
sonnel was initiated in June 2000, within the limits of
authorized capital, in order to foster loyalty and motivation
among IBA employees by enabling them to benefit from
the Group’s growth prospects. A total of 427,000 warrants
were thus issued, of which 380,450 were allocated at the
end of fiscal 2000, with almost all of them allocated in June
at a price of 28 EUR. Furthermore, 363,507 warrants
issued in 1998 remain unexercised at the end of 2000, the
majority of them having been issued at an exercise price of
4.29 EUR.
IBA held at December 31, 2000, via the IBA Investments
SCRL company controlled indirectly at 100%, a total of
399,327 of its own shares, mainly acquired in the trans-
action with Tenet described elsewhere but also from buy-
ing on the stock market. It should be noted that most of
these shares were relinquished after the closure of the
financial year, being offered as payment to the sharehold-
ers of Eastern Isotopes at the time of the acquisition of
that company in February 2001.
General outlook for 2001
The Group’s objective for fiscal 2001 is to enhance the
profitability of its various activities by continuing, and if
necessary intensifying, the optimization measures defined
and implemented in the course of the year 2000.
This year will also be a decisive year in the field of pro-
ton therapy. The Group is thus expecting to see its efforts
of recent years come to fruition both at the regulatory
level by obtaining FDA approval and in terms of sales.
The production and distribution of radioisotopes will be
a driving element for vigorous growth in the coming
years, thanks in particular to the acquisition of Eastern
Isotopes and of RadioMed.
IBA also wishes to provide innovative solutions and to
take a leadership position in markets of longer-term
development, particularly food pasteurization.
These activities will require sustained investment, and thus
mobilization of the Group’s financial resources, before
making any significant contribution to the growth of prof-
its. Nevertheless, thanks to strengthening its organization-
al structure and its financial resources during the last finan-
cial year, IBA is confident of its ability to prepare the con-
ditions for its long-term growth.
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11 IBA 2000 - Financial report
FUNCTIONING
OF THE BOARD OF DIRECTORS
In compliance with recommendations regarding practices
to be observed in matters of Corporate Governance, the
company’s Articles of Association were modified by the
October 18, 1999 extraordinary General Meeting with a
view to achieving a balanced representation within the
Board of Directors of independent Directors, executive
Directors and other Directors.
Henceforth, the Board of Directors must be made up for
at least one third of its members by independent
Directors nominated on the basis of proposals by a
Nominations Committee formed within the Board of
Directors, and for at least one third of its members by
Directors nominated on the basis of proposals by the
Executive and Strategic Committee.
Other Directors are freely nominated by the General
Meeting under the proviso, however, that among these other
Directors no more than two members shall be directly or
indirectly related to the same shareholder or to a company or
person related to said shareholder.
These new provisions will be in effect as of the conclusion of
the ordinary General Meeting held on May 10, 2000.
At December 31, 2000, the Board of Directors was com-
posed of Messrs. Pierre Mottet, Jean-Claude Delobel,
Yves Jongen and Eric de Lamotte in their capacity as
executive Directors, Messrs. Jean Stéphenne, Jacques de
Vaucleroy, Peter Vermeeren and Arthur Janta-Polczynski
as independent Directors and the Institut National des
Radioéléments (IRE) represented by Mrs Nicole
Destexhe, Messrs. Philippe de Woot de Trixhe, Olivier
Ralet and Ferndinand d’Oultremont as other Directors.
The mandates of Messrs. Jean Stephenne, Arthur Janta-
Polczynski, Peter Vermeeren, Jacques de Vaucleroy, Jean-
Claude Delobel, Pierre Mottet and Eric de Lamotte will
terminate at the General Meeting deciding on the 2003
accounts. The mandate of Mr Olivier Ralet submitted for
ratification to the General Meeting of May 9, 2001, will ter-
minate at the General Meeting deciding on the 2004
accounts. The mandates of Messrs. Philippe de Woot de
Trixhe, Yves Jongen and Ferndinand d’Oultremont and that
of the Institut National des Radioéléments (IRE) will expire
at the General Meeting deciding on the 2001 accounts.
Together, the Directors hold directly 881,974 IBA shares
and 105,200 warrants allowing them to subscribe to IBA
shares.The total amount paid by the Group to the members
of the Board of Directors in payment for the functions per-
formed or services rendered amounted to EUR 1,049 thou-
sand for fiscal 2000.
The Board of Directors is empowered to execute all actions
that are necessary or useful in order to fulfil the objective of
the company, except those reserved by law or by the Articles
of Association to the General Meeting.
The Board of Directors may make decisions only if a
majority of its members is present or represented. Its deci-
sions are based on majority votes. In the event of a tie, the
vote of the Chairman or of his substitute shall prevail.
If a legal person is nominated Director, it shall designate
a natural person through whom it shall exercise its man-
date (article 12 of the Articles of Association).
In exceptional cases duly justified by urgency and the need
to serve the interests of the company, the decisions of the
Board of Directors may be taken by unanimous consent of
the Directors expressed in writing. This procedure howev-
er, may not be invoked to approve the annual accounts or
release authorized capital.
In its acts, including those involving the participation of a
public official or a Ministry official, and in the law courts, the
company is represented by two Directors acting jointly, who
will not be required to justify vis-à-vis third parties any pre-
vious decision made by the Board of Directors.
The Board of Directors meets as and when it is necessary and
at least four times a year. The most significant subjects that
are debated include the situation of the markets, the strate-
CORPORATE GOVERNANCE, MANAGEMENT AND CONTROL
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12 IBA 2000 - Financial report
gies deployed, technological developments, financial evolu-
tion as well as matters concerning human resources.
Reports on the subjects discussed by the Board of
Directors are communicated in advance to non-executive
Directors so that they may exercise their expertise in full
knowledge of the facts.
In order to follow the evolution of the activities of sub-
sidiaries and of companies in which IBA has an equity
stake, the members of the Executive and Strategic
Committee are represented on the Boards of Directors of
subsidiaries. The presidents of the Business Units report
directly to the Chief Executive Officer.
The Remuneration committee, created by the Board of
Directors, elaborates plans to remunerate the members of
the Executive and Strategic Committee and stock option
plans in favor of all members of the company.
There have been no unusual transactions or loans accord-
ed by IBA to members of the Board of Directors or the
Executive and Strategic Committee.
DAY-TO-DAY MANAGEMENT
The Board of Directors may delegate day-to-day manage-
ment as well as the representation of the company as regards
such management to one to several managers or officers.
It nominates and revokes the persons delegated to carry
out these tasks, which may be chosen from within or
outside the Board, decides their remuneration and estab-
lishes theirs attributions.
The Board of Directors and the persons delegated to
carry out day-to-day management may also devolve,
within the framework of this task, special and defined
powers to one or several persons of their choosing.
There is an Executive and Strategic Committee compris-
ing Jean-Claude Delobel (Chief Executive Officer),
Pierre Mottet (Chairman of this committee), Yves Jongen
(Chief Research Officer) and Eric de Lamotte (former
Chief Financial Officer of the Group until June 2000)
who are Directors on IBA’s Board.
The Group’s Management Committee, chaired by the Chief
Executive Officer, consists of the managers holding the
Corporate functions (finance, business development, control-
ling, communication, human ressources, information sys-
tems, research and development) and the five Business Units.
The salaries paid by the Group in 2000 for the positions
held and the consultancy services rendered by the mem-
bers of these two Committees (16 persons in all)
amounted to a total of 2,100 thousand EUR.
SHAREHOLDER PACT ACTING TOGETHER
IBA’s major shareholders – Belgian Anchorage, UCL,
Sopartec and I.R.E. – who have declared that they are
acting jointly, concluded a shareholder pact expiring in
2003 by which they commit to maintain together a sub-
stantial stake in IBA’s equity. The total equity held by
these shareholders on the date of the last transparency
declaration of June 6, 2000 amounted to 11,442,110
shares, representing 47.3% of the stock and 47.8% of the
company’s voting rights.
There are no other relations or particular arrangements
between shareholders.
AUDITORS
The General Meeting in May 2000 appointed
PricewaterhouseCoopers, Reviseurs d’Entreprises
S.C.C.R.L as company auditor in cooperation with
Salustro Triest Vleck S.C.P.R.L. (formerly Nevens &
Co.). The fees paid to the auditors for the work of audit-
ing the statutory accounts of IBA SA, the Group con-
solidated accounts and the accounts of the Belgian sub-
sidiaries within the perimeter of consolidation
amounted to a total of EUR 66,620 for fiscal 2000.
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13 IBA 2000 - Financial report
Mr Philippe de WOOT de TRIXHE Smisstraat, 89 – B-3080 VOSSEM (Belgium)Chairman of the Board of Directors
Mr Jean STEPHENNEAvenue Alexandre, 8 – 1330 RIXENSART (Belgium)Director - Start of mandate : 05/10/2000
Mr Peter VERMEERENUtrechtseweg, 60 – 1213 TW HILVERSUM (Holland)Director - Start of mandate : 05/10/2000
Mr Jacques de VAUCLEROYAvenue Orban, 102 – 1150 BRUSSELS 15 (Belgium)Director - Start of mandate : 05/10/2000
Mr Arthur JANTA-POLCZYNSKIAvenue des Eglantiers, 39 – 1180 BRUSSELS (Belgium)Director - Start of mandate : 05/10/2000
Mr Pierre MOTTETAvenue Isidore Gérard, 8 – 1160 AUDERGHEM (Belgium)Managing Director - Start of mandate : 05/10/2000
Mr Jean-Claude DELOBELAllemeesschlaan 7 - 8670 KOKSIJDE (Belgium)Managing Director - Start of mandate : 05/10/2000
Mr Eric de LAMOTTERue Paul Bossu 5 - 1150 BRUSSELS (Belgium)Director - Start of mandate : 05/10/2000
Mr Yves JONGENAvenue des Citeaux, 19 – 1348 LOUVAIN-LA-NEUVE (Belgium)Managing Director
Mr Ferdinand d’OULTREMONTRue des Haies, 20 - 4560 CLAVIER (Belgium)Director
Mr Olivier RALETRue de Mareyde, 29 – 1150 BRUSSELS (Belgium)Director - Start of mandate : 06/28/2000
BANQUE BRUXELLES LAMBERT
(403.200.393)
Avenue Marnix, 24 – 1000 BRUSSELS (Belgium)
Director - End of mandate : 05/10/2000
Represented by : Mr Jacques de VAUCLEROY
Avenue Orban, 102 – 1150 BRUSSELS (Belgium)
BELGABEAM
Chemin du Cyclotron, 3 – 1348 LOUVAIN-LA-NEUVE (Belgium)
End of mandate : 05/10/2000
Represented by : Mr Pierre MOTTET
Avenue Isidore Gérard, 8 – 1160 AUDERGHEM (Belgium)
TENET HEALTHCARE CORPORATION
State Street, 3820 – 93105 SANTA BARBARA L.A. (USA)
Director - End of mandate : 06/28/2000
Represented by : Mr Donald W. THAYER
(USA)
INSTITUT NATIONAL DES RADIOELEMENTS
(408.449.677)
Zoning Industriel – 6220 FLEURUS (Belgium)
Director
Represented by Mme Nicole DESTEXHE (Belgium)
SALUSTRO TRIEST VLECK SCPRL
(Formerly Nevens) (B00124) (439.574.801)
Boulevard Sylvain Dupuis, 243 – 1070 BRUSSELS ( Belgium)
Auditor
Represented by Mr André CLYBOUW (N00510)
Liersesteenweg, 284 - 2547 LINT (Belgium)
PRICEWATERHOUSECOOPERS SCCRL
(B00009) (429.501.944)
Woluwedal, 18 – 1932 SINT-STEVENS-WOLUWE (Belgium)
Auditor
Represented by Mr Philippe BARBIER (F00629)
Rue Axhelière, 55 - 4500 HUY (Belgium)
CONSOLIDATED ANNUAL ACCOUNTSCOMMUNICATED TO THE GENERAL MEETING ON 05/09/2001
FOR THE PREVIOUS FINANCIAL YEAR FROM 01/01/2000 TO 31/12/2000
COMPLETE LIST OF DIRECTORS, OFFICERS AND AUDITORS
For the composition of the Board of Directors on March 31, 2001,
consult page 42 of the first part of this Annual Report.
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14 IBA 2000 - Financial report
ASSETS (in 000 EUR) 2000 1999 1998
FIXED ASSETS 521,139 459,545 11,707
I. Formation expenses 11 245 –
II. Intangible fixed assets 27,616 13,220 6,394
III. Goodwill 227,450 217,192
IV. Tangible fixed assets 264,269 226,561 4,989
A. Land and buildings 79,631 62,631 1,180B. Plant, machinery and equipment 148,419 127,654 658C. Furniture and vehicles 3,165 3,127 538D. Leases and similar rights 2,562 2,669 2,613E. Other tangible assets 2,687 2,985 –F. Assets under construction, advance payments 27,805 27,495 –
V. Financial assets 1,793 2,327 324
A. Companies accounted for using equity method 359 – –1. Participating interests 359 – –2. Receivables – – –
B. Other companies 1,434 2,327 3241. Participating interests and shares 83 282. Receivables 1,351 2,299 324
CURRENT ASSETS 231,907 132,752 86,434
VI. Accounts receivable after one year 4,985 9,903 –
A. Trade receivables 861 – –B. Other receivables 199 3,227 –C. Short-term deferred taxes 3,925 6,676 –
VII. Inventory and contracts in progress 57,662 41,997 19,114
A. Inventory 34,025 10,432 4,3311. Raw materials and consumables 5,455 4,179 1,9502. Work in progress 26,321 3,477 2,0853. Finished goods 2,249 2,765 2964. Goods for resale – 11 –
B. Contracts in progress 23,637 31,565 14,783
VIII. Accounts receivable within one year 42,167 59,542 14,698
A. Trade receivables 26,450 39,644 13,937B. Other receivables 14,756 10,057 761C. Short-term deferred taxes 961 9,841 –
IX. Investments 105,725 9,966 49,733
A. Own shares – – –B. Other investments 105,725 9,966 49,733
X. Cash and cash equivalents 18,310 8,240 1,190
XI. Deferred charges and accrued income 3,058 3,104 1,699
TOTAL ASSETS 753,046 592,297 98,141
I. CONSOLIDATED BALANCE SHEET AFTER APPROPRIATION
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15 IBA 2000 - Financial report
LIABILITIES (in 000 EUR) 2000 1999 1998
SHAREHOLDERS' EQUITY 390,744 209,633 25,296
I. Capital (ann. VIII) 33,456 27,704 22,857
A. Issued capital 33,456 27,704 22,857B. Uncalled capital (–) – – –
II. Additional paid-in capital 334,079 168,810 11
IV. Consolidated reserves (+) (– ) 12,772 5,747 2,340
IV.bis Own shares (4,488) – –
VI. Translation differences (+) (– ) 14,496 6,867 –
VII. Investment grants 429 505 88
MINORITY INTERESTS
VIII. Minority interests (211) 376 –
PROVISIONS AND DEFERRED TAXES 20,827 29,941 5,280
IX. A. Provisions for liabilities and charges 7,550 5,825 5,124
1. Pensions and similar obligations 126 166 732. Taxation 305 747 –3. Major repairs and maintenance 44 – –4. Other liabilities and charges 7,075 4,912 5,051
B. Deferred taxes and latent taxation liabilities 13,277 24,116 156
CREDITORS 341,686 352,347 67,565
X. Accounts payable after one year 232,591 108,695 44,028
A. Financial debts 228,101 57,412 2,3332. Unsubordinated debenture loans – 15,429 –3. Leasing and similar obligations 3,302 2,987 2,1654. Credit institutions 177,036 38,797 665. Other loans 47,763 199 102
C. Advances received on contracts in progress – 46,927 38,076D. Other debts 4,490 4,356 3,619
XI. Amounts payable within one year 94,181 230,626 21,352
A. Current portion of debts after one year 23,203 6,647 2,297B. Financial debts 8,073 180,745 339
1. Credit institutions 8,073 180,262 3392. Other loans – 483 –
C. Trade debts 26,193 24,154 6,5491. Suppliers 26,177 24,154 6,5492. Other loans 16 – –
D. Advances received on contracts in progress 21,980 6,127 10,250E. Taxes, remuneration and social security 12,087 11,457 1,754
1. Taxes 7,998 2,912 6882. Remuneration and social security 4,089 8,545 1,066
F. Other debts 2,645 1,496 163
XII. Accrued charges and deferred income 14,914 13,026 2,185
TOTAL LIABILITIES 753,046 592,297 98,141
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16 IBA 2000 - Financial report
(in 000 EUR) 2000 1999 1998
I. Operating income 236,115 141,647 39,591A. Sales 214,473 130,691 30,651B. Increase (Decrease) in stocks of finished goods,
work and contracts in progress 18,764 8,236 8,574C. Fixed assets - own construction 1,055 2,623 –D. Other operating income 1,823 97 366
II. Cost of sales 144,463 86,452 21,478
III. Gross margin 91,652 55,195 18,113
IV. Selling and marketing expenses 16,344 9,702 3,392
V. General and administrative expenses 31,930 13,291 1,489
VI. R & D 20,776 11,911 6,484
VII. Other operating income (capitalized R&D) (14,560) (8,691) (3,319)
VIII. Other operating expenses 558 246 –
IX. Operating result 36,604 28,736 10,067
X. Amounts written down on positive consolidation differences 12,609 6,130 4,930
XI. Financial income 10,247 17,469 9,292A. Income from financial assets 147 1,524 212B. Income from current assets 5,919 4,579 7,234C. Other financial income 4,181 11,366 1,846
XII. Financial charges 20,625 24,546 8,081A. Interest expense 17,504 9,224 6,625B. Amounts written off current assets – – 1C. Other financial charges 3,121 15,322 1,455
XIII. Current result before taxes 13,617 15,529 6,348
XIV. Extraordinary income 663 1,137 –E. Gain on disposal of fixed assets 5 1 –F. Other extraordinary income 658 1,136 –
XV. Extraordinary expenses 6,713 13,006 1,046A. Extraordinary depreciation of and amounts
written off formation expenses,intangible and tangible fixed assets 22 – –
B. Extraordinary amounts written on positive consolidation differences – – –
C. Amounts written off financial fixed assets – – –D. Provisions for extraordinary liabilities and charges – – –E. Loss on disposal of fixed assets 59 – –F. Other extraordinary expenses 6,632 13,006 1,046G. Extraordinary charges capitalized
as reorganization costs – – –H. Negative consolidation differences – – –
XVI. Result before taxes and minority interest 7.567 3,660 5,302
XVII. A. Transfer to deferred taxes 2,856 3,169 1B. Transfer from deferred taxes 6,166 8,439 –
XVIII. Income taxes 4,249 5,505 3,422A. Taxes 4,082 5,565 3,422B. Tax adjustments and write-backs of provisions for taxes 167 (60) –
XIX. Profit for the period 6,628 3,425 1,879
XX. Share in the result of enterprises accounted for using the equity method (191) – –A. Profits – – –B. Losses 191 – –
XXI. Consolidated profit 6,437 3,425 1,879
XXIII. Group’s share 7,026 3,406 1,879
XXIV. Third-party share (589) 19 –
II. INCOME STATEMENT
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17 IBA 2000 - Financial report
(in 000 EUR) 2000 1999 1998
Cash flow from operating activities 33,356 2,308 19,844
Net profit (loss) - without financial result 16,815 10,483 668Depreciation of fixed assets 32,981 15,054 3,446Goodwill amortization 12,609 6,130 4,930Net allocation to provisions for liabilities and charges 1,725 (951) (509)Variation in deferred taxes 792 (7,955) –Variation in trade receivables and other amounts receivable 10,662 (9,117) 716Variation in stocks and contracts in progress (15,665) (17,886) (8,590)Variation in deferred charges and accrued income (46) (1,800) (358)Variation in supplier debts 4,557 4,878 60Variation in advances received on contract in progress (31,074) 3,472 19,481
Cash flow from investing activities (75,033) (376,157) (11,943)
Net purchase of fixed assets (65,527) (38,300) (5,464)In which fixed assets own construction (15,615) (11,314) (3,319)
Other movements of fixed assets (1,905) - -Acquired investments (7,601) (337,857) (6,479)
Cash flow from financing activities 147,506 314,811 15,286
Net financial result (10,922) (7,077) 1,211Long-term bank loan refund - (38,475) (112)Movement in other financial debts 14,573 179,972 (12)Others 1,283 158 (3,225)Capital increase 171,020 173,525 18,020Grants 747 288 (596)Purchase of own shares (4,488) - -Non-allocated translation differences (24,707) 6,420 -
Net (decrease) increase in cash & cash equivalent 105,829 (59,038) 23,187 Cash acquired - 26,321 247Cash & cash equivalent at beginning of the year 18,206 50,923 27,489
Cash & cash equivalent at end of the year 124,035 18,206 50,923
III. TABLE OF CONSOLIDATED CASH FLOW
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18 IBA 2000 - Financial report
IV. LIST OF CONSOLIDATED COMPANIES AND ENTERPRISES INCLUDED USING THE EQUITY METHODName and complete address Method of inclusion into accounts Share of equity Variation of the % of
(F: full consolidation, held (in %) equity held versus E: equity method) the previous year
Sub-group MediflashMediflash Holding AB F 100% -Stålgatan, 1475450 UPPSALA – SWEDEN
Scandiflash AB F 100% -Stålgatan, 1475450 UPPSALA – SWEDEN
Scanditronix Medical AB F 100% -Stålgatan, 1475450 UPPSALA – SWEDEN
Scanditronix Medical GmbH F 100% -Burheimer Str., 1079111 FREIBURG – GERMANY
Scanditronix Ophtalmology AB F 100% -Stålgatan, 1475450 UPPSALA – SWEDEN
Gyrab International AB F 100% -Stålgatan, 1475450 UPPSALA – SWEDEN
Wellhöfer Dosimetrie GmbH F 100% -Bahnhofstrasse, 590592 SCHWARZENBRUCK – GERMANY
Scanditronix Magnet AB F 100% -Box 26, 3034030 VISLANDA – SWEDEN
Scanditronix Wellhöfer North America Inc F 100% -Stage Post Drive, 3111 Suite 10538133 County of Shelby, BARLETT, TN – USA
Radiation Dynamics, Inc F 100% -Heartland Blvd, 151EDGEWOOD – NEW YORK 11717-8374 – USA
Sub-group GMS IIGriffith Micro Science Int. Inc. F 100% -West Bryn Mawr, 8550 – Suite 600CHICAGO – ILLINOIS 60631 – USA
Griffith Micro Science Inc F 100% -West Bryn Mawr, 8550 – Suite 600CHICAGO – ILLINOIS 60631 – USA
Griffith Micro Science Inc Utah F 100% -West Bryn Mawr, 8550 – Suite 600CHICAGO – ILLINOIS 60631 – USA
NGS Entreprises S. de R.L. de C.V. F 60% -Calle Norte, 7 S/N54730 TEPEJI DEL RIO DE O. EDO. DE HIDALGO – MEXICO
Griffith Micro Science LTD F 100% -Pharmacy Avenue, 757SCARBOROUGH – ONTARIO M1L 3J8 – CANADA
Griffith Micro Science S. de R.L. de C.V. F 100% -James Watt NO.22 Zona Industrial CuamaltaCUAUTITLAN IZCALLI EDO. DE MEXICO 54730 – MEXICO
NOTES ON THE CONSOLIDATED ACCOUNTS
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19 IBA 2000 - Financial report
Name and complete address Method of inclusion into accounts Share of equity Variation of the % of (F: full consolidation, held (in %) equity held versus
E: equity method) the previous year
Sub-group IBA S&I, BV (ex- Griffith Micro Science BV)IBA S&I, BV F 100% -Storkstraat, 101722 NN ZOETEMEER – NETHERLANDS
IBA S&I N.V. F 100% -Atealaan, 4C2200 HERENTALS – BELGIUM
IBA S&I Wallonnie S.A. F 100% -Avenue du Parc, ZI Petit Rechain4800 VERVIERS – BELGIUM
IBA Mediris S.A. F 82,80% -Avenue de l’Espérance, 1 – ZI de Fleurus6220 FLEURUS - BELGIUM
IBA S&I Gmbh F 100% -Dreieichstrasse, 764546 MORFELDEN – GERMANY
IBA S&I LTD F 100% -Cotes Park EstateDE55 4 NJ SOMERCOTES – DERBYSHIRE – ENGLAND
IBA S&I SAS F 100% -Rue Parmentier, 860290 RANTIGNY – France
IBA S&I S.A. F 100% -Avenue de Lossburg – ZI de St Romain69480 ANSE – FRANCE
IBA Radioisotopes France S.A. F 100% -Rue Parmentier, 860290 RANTIGNY – FRANCE
Sub-group Sterigenics Int, Inc.SteriGenics Int, Inc. F 100% -West Bryn Mawr, 8550 – Suite 600CHICAGO – ILLINOIS 60631 – USA
RSI Leasing, Inc F 100% -West Bryn Mawr, 8550 – Suite 600CHICAGO – ILLINOIS 60631 – USA
SteriGenics East Corporation F 100% -West Bryn Mawr, 8550 – Suite 600CHICAGO – ILLINOIS 60631 – USA
SteriGenics Int Holding Corp F 100% -West Bryn Mawr, 8550 – Suite 600CHICAGO – ILLINOIS 60631 – USA
SteriGenics Cayman F 100% -Ugland HouseGEORGE TOWN – GRAND CAYMAN – CAYMAN ISLAND
IBA S&I, Thailand, Ltd (ex-SteriGenics Thailand) F 100% -16th Floor, Chartered Square Build - North Sathon Road, 15210500 BANGRAK – BANGKOK – THAILAND
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V. CONSOLIDATION CRITERIA AND CHANGES IN
THE CONSOLIDATION SCOPE
A. INFORMATION AND IDENTIFICATION OF THE CRITE-
RIA GOVERNING THE APPLICATION OF FULL CONSOLI-
DATION, PROPORTIONAL CONSOLIDATION AND THE
EQUITY METHOD AS WELL AS THOSE CASES WHERE, IF
JUSTIFICATION IS PROVIDED, A DEPARTURE FROM
THESE CRITERIA IS PERMITTED BY APPLICATION OF
ARTICLE 69.1 OF THE BELGIAN ROYAL DECREE OF
MARCH 6, 1990)
Percentages of equity held are used to determine the appro-
priate consolidation methods. Voting rights pertaining to
shares of subsidiaries held by the subsidiaries themselves or
their own subsidiaries are not taken into account to deter-
mine equity holdings and are hence neutralized.
Subsidiaries that are wholly owned de jure or de facto,
according to the definitions of the R.D. of March 6, 1990,
are included in the scope of consolidation as wholly owned
subsidiaries and integrated using the full consolidation
method. Companies in which the Group has a substantial
but not controlling influence are consolidated by the equity
method.
B. INFORMATION WHICH MAKES COMPARISON MEAN-
INGFUL WITH THE CONSOLIDATED ACCOUNTS OF THE
PREVIOUS FINANCIAL PERIOD IN CASE THE COMPOSI-
TION OF THE CONSOLIDATED ENTITY HAS BEEN SUB-
STANTIALLY MODIFIED IN THE COURSE OF THE PERIOD
UNDER CONSIDERATION BY APPLICATION OF ARTICLE
18 OF THE R.D. OF MARCH 6, 1990)
The Group’s consolidation scope has not experienced any
notable change in the 2000 Financial Year. It should nev-
ertheless be remembered that the companies Griffith
Micro Science International Inc., IBA S&I B.V. (formerly
Griffith Micro Science B.V.) and their respective sub-
sidiaries as well as Griffith Micro Science Ltd (Canada),
Griffith Micro Science S. de R.L. de C.V. and Radiation
Dynamics Inc. have been consolidated with effect from
May 1, 1999, and that the SteriGenics International Inc.
company and its subsidiaries with effect from July 1, 1999.
Name and complete address Method of inclusion into accounts Share of equity Variation of the % of (F: full consolidation, held (in %) equity held versus
E: equity method) the previous year
Other subsidiaries and investmentsIBA Participations SPRL F 100% –Chemin du Cyclotron, 31348 LOUVAIN-LA-NEUVE – BELGIUM
IBA Investment SCRL F 100% + 100%Chemin du Cyclotron, 31348 LOUVAIN-LA-NEUVE – BELGIUM
IBA Corporate Services SA F 100% + 100%Avenue Albert Einstein, 41348 LOUVAIN-LA-NEUVE – BELGIUM
IBA Radioisotopes SA F 100% –Avenue de l’Espérance, 1 – ZI de Fleurus6220 FLEURUS – BELGIUM
Proton Therapy Corporation of America, Inc F 100% + 100%Noel Road, 13737 – Suite 100, 15 F75240 DALLAS – TEXAS – USA
IBA Radioisotopes Inc. F 100% + 100%C/O Corporation Service Company, Center Road, 1013
19805 WILMINGTON, New Castle County, Delaware – USA
RadioMed Corporation E 46.1% + 46.1%Industrial Way, 101879 TYNSBOROUGH, MASSACHUSSETS – USA
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21 IBA 2000 - Financial report
VI. SUMMARY OF VALUATION RULES AND
METHODS OF CALCULATION OF DEFERRED
TAXES
A. LIST OF CRITERIA REGULATING THE VALUATION OF
VARIOUS ITEMS IN THE CONSOLIDATED ANNUAL
ACCOUNTS, IN PARTICULAR THE CRITERIA IN RESPECT
OF:
- the conditions and adjustments of depreciation and
other amounts written off, provisions for liabilities and
charges and revaluations (in compliance with article
69 VI.a of the R.D. of March 6, 1990).
- the bases for translation of amounts that were originally
expressed in a different currency than the one used for
the annual consolidated accounts and of figures from the
accounting statements of subsidiaries and associated
companies organized under foreign law (in compliance
with article 69 VI.b of the R.D. of March 6, 1990).
a) Tangible and intangible fixed assets
Tangible and intangible fixed assets are booked at their
acquisition cost. The agreed periods of depreciation depend
on the nature of the fixed assets and the estimate of their life.
Research and Development expenses and fixed assets are
carried over into assets at their full cost. Capitalized
R&D charges are depreciated prorata temporis over a
period of five years from their booking in the balance
sheet assets.
The depreciation rates and methods used by the compa-
ny are as follows:
1. Buildings 3 %2. Plant and machinery 10 and 20 %3. Equipment 33 %4. Furniture 10 %5. Computer equipment 33 %6. Vehicles 20 %7. Other tangible fixed assets 20 %
b) Financial assets
Parts and shares in non-consolidated companies are booked
at their acquisition cost. Amounts are written off whenever
lasting reductions in the value of these assets are observed.
Receivables are booked at their nominal value or acquisition
cost. Amounts are also written off in case of lasting reduc-
tions of their value.
c) First acquisition differential (goodwill)
The excess of the acquisition cost of stock in consolidated
companies with respect to the corresponding pro rata net
book value of assets on the acquisition date is treated dif-
ferently, according to whether it represents additional
value that can be assigned to assets or liabilities or an extra
cost that cannot be directly assigned.
A differential representing an assessment of the value of
an asset is booked in the appropriate asset account and
depreciated accordingly.
The unassigned differential is depreciated over a period
corresponding to the time horizon considered for the
evaluation of newly acquired companies. The Board of
Directors evaluates the probable service life of the invest-
ment for each acquisition. Acquisition variances are thus
depreciated over a maximum period of 20 years. Only the
acquisition variance recorded in 1998 at the acquisition of
the Mediflash company was fully depreciated within the
financial year at that time.
If the acquisition differential is negative, it is only booked
and hence reflected in the statement of income to the
extent that the difference between the acquisition cost of
the equity stake and the value of the underlying equity of
the company is justified by unfavourable prospects for the
subsidiary’s results.
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22 IBA 2000 - Financial report
d) Stocks and work in progress
The weighted average cost method is used for goods with
identical technical and legal characteristics. Failing that,
the last acquisition cost method is applied instead.
Stocks of finished goods are evaluated at total direct and
indirect production cost, or at standard cost for mass-pro-
duced goods.
Contracts in progress are evaluated at their complete cost,
increased, in the light of the state of progress of the work,
by a proportion of the margin until customer acceptance of
the contractually covered equipment. This rule represents
an amendment in terms of the methods used until 1999,
according to which contracts in progress were evaluated at
their direct cost price increased, in the light of the actual
state of progress, by a proportion of the expected margin.
Invoices to customers for these contracts in progress are
booked into the “Adnances received on contracts in
progress” item.
e) Receivables
Receivables are booked at their nominal value or acquisi-
tion cost.
Amounts are written off whenever receivables present
lasting settlement difficulties.
f ) Investments
Deposits with credit institutions are booked at their nominal
value. Deposits in foreign currency are translated at the
exchange rate on the day the books are closed. Results subse-
quent to the translation operation are booked as gains or losses.
g) Provisions for liabilities and charges
Every year, the Board of Directors evaluates the provisions
that are necessary based on conservatism, sincerity and good
faith. These provisions are individualized based on the
nature of the liabilities and charges they are designed to
cover. They are not maintained to the extent that at the end
of the period they exceed an updated appraisal of the liabil-
ities and charges against which they had been established.
h) Debts
Debts are booked at their nominal value.
i) Translation differences
Exchange variances in the balance sheet’s monetary items
are posted in the Income Statement. Unrealized exchange
differences, positive or negative, on long-term receivables
and loans of a permanent funding nature are excluded from
the determination of the result and are booked, in their
amounts net of tax, in the “Translation differences” item of
Shareholders’ Equity.
j) Conversion into euros of the financial statements of the
consolidated companies.
The balance sheet items of the companies whose accounts
are not kept in euros are converted at the closure rate, and
the Income Statements are converted at the average rate
incorporated in the consolidation for the financial year.
k) Impact of modification of valuation rules
The valuation rules have been modified during the financial
year as follows:
i. Stocks and work in progress are valuated at the full pro-
duction cost (1999: direct production cost). This modifi-
cation has had a negative impact on the consolidated
operating result of around EUR 0.4 million;
ii. The accessory costs relating to the acquisition of intangi-
ble assets are capitalized (1999: taken in the result); this
modification has had a positive impact on the consolidat-
ed operating result of around EUR 0.9 million.
In addition, the internal rules of the Group for recognition
of the completion of equipment sales have been reviewed in
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23 IBA 2000 - Financial report
a more restrictive way, leading to the non-recognition in
2000 of an operating margin of around EUR 1.5 million
which would have been recognized under the rules applica-
ble in 1999.
B. FUTURE TAXATION AND DEFERRED TAXES Amounts
(in 000 EUR)
Deferred taxes and fiscal latencies, breakdown of Section IX.B of Liabilities 13,277
- Deferred taxes (by vir tue of the R.D. of October 8, 1976 as introduced by the R.D. of December 30, 1991) 282
- Fiscal latencies (by vir tue of the R.D. of March 6, 1990) 12,995
Explanation of the methods used for determining deferred
taxes (variable or fixed reporting method):
The Group books a deferred tax liability for all taxable tem-
poral differences, that is to say differences that will generate
the taxable amounts in the determination of the taxable
profit of future financial years when the book value of the
assets or liabilities will be recovered or paid.
A deferred tax asset is booked for:
- All deductible temporal differences, that is to say differ-
ences that will generate the taxable amounts in the deter-
mination of the taxable profit of future financial years
when the book value of the assets or liabilities will be
recovered or paid.
- The carrying forward of unused fiscal losses or tax cred-
its, to the extent that it is probable that the entity will dis-
pose of future taxable profits against which these
deductible temporal differences or these unused fiscal
losses or tax credits could be charged.
VII. STATEMENT OF FORMATION EXPENSES (in 000 EUR) Amounts
Net book value at the end of the previous period 245
Changes during the period :- New expenses incurred 2- Depreciation (–) (2)- Translation differences (+) (–) –- Others* (+) (–) (234)
Net book value at the end of the period 11
Of which: - Expenses for initial and new equity issues,expenses for debt flotation, redemption premiums and other formation expenses 11
- Restructuring expenses –
The “Others” line corresponds to a reclassification concerning Concessions, patents and licences; the amount is shown in “Acquisitions”.
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24 IBA 2000 - Financial report
IX. STATEMENT OF TANGIBLE FIXED ASSETS Land and Plant, machinery Furniture and buildings and equipment vehicles
(in 000 EUR) (heading IV.A) (heading IV.B.) (heading IV.C.)
A. ACQUISITION COST
At the end of the previous period 67,528 154,254 7,265Changes during the period :
- Acquisitions, including own construction of fixed assets 3,588 16,003 701- Sales and disposals (–) (44) (154) (24)- Transfers from one heading to another (+) (–) 9,416 15,227 338- Translation differences (+) (–) 5,635 11,680 187- Other variations 2,145 1,019 –
At the end of the period 88,268 198,029 8,467
B. REVALUATION SURPLUSES
At the end of the previous periodChanges during the period :
- Recorded – – –- Acquired from third parties – – –- Cancelled (–) – – –- Transferred from one heading to another (+) (–) – – –- Translation differences (+) (–) – – –- Other variations – – –
At the end of the period – – –
VIII.STATEMENT OF INTANGIBLE ASSETSResearch & Development Concessions, patents,
(in 000 EUR) expenses licencies, etc.
A. ACQUISITION COST
At the end of the previous period 27,469 2,403Changes during the period :
- Acquisitions, 16,279 4,892including own construction of fixed assets – –
- Sales and disposals (–) – (344)- Transfers from one heading to another (+) (–) – 304- Translation differences (+) (–) (14) 14- Other variations* – (135)
At the end of the period 43,734 7,134
C. DEPRECIATIONS AND WRITE-OFFS
At the end of the previous period 15,378 1,274Changes during the period :
- Recorded 5,643 920- Write-backs (–) – –- Acquisitions from third parties – –- Written down after sales and disposables (–) – (47)- Transfers from one heading to another (+) (–) – 104- Translation differences (+) (–) (7) (13)- Other variations* – –
At the end of the period 21,014 2,238
D. NET BOOK VALUE AT THE END OF THE PERIOD (a) – (c) 22,720 4,896
“Other variations” recorded under “Concessions, patents and licences” correspond to an adjustment to the fair value of a software programme acquiredwhen taking control of Griffith Micro Science International Inc.
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25 IBA 2000 - Financial report
IX. STATEMENT OF TANGIBLE FIXED ASSETS (CONTINUED)Leases and Other tangible Assets under constraint,
similar rights fixed assets advance payments(in 000 EUR) (heading IV.D.) (heading IV.E.) (heading IV.E.)
A. ACQUISITION COST
At the end of the previous period 3,703 6,977 27,495Changes during the period :
- Acquisitions, including own construction of fixed assets 7 620 25,026- Sales and disposals (–) (86) – –- Transfers from one heading to another (+) (–) – (565) (24,720)- Translation differences (+) (–) – 143 (68)- Other variations* – (113) 72
At the end of the period 3,624 7,060 27,805
B. REVALUATION SURPLUSES
At the end of the previous periodChanges during the period :
- Recorded – – –- Acquired from third parties – – –- Cancelled (–) – – –- Transfers from one heading to another (+) (–) – – –- Translation differences (+) (–) – – –- Other variations – – –
At the end of the period – – –
C. DEPRECIATION AND AMOUNTS WRITTEN DOWN
At the end of the previous period 1,034 3,992 –Changes during the period :
- Recorded 114 493 –- Write-backs (–) – – –- Acquired from third parties – – –- Written down after sales and disposals (–) (86) – –- Transfers from one heading to another (+) (–) – – –- Translation differences (+) (–) – 43 –- Other variations* – (155) –
At the end of the period 1,062 4,373 –
D. NET BOOK VALUE AT THE END OF THE PERIOD (a)+(b) – (c) 2,562 2,687 27,805
Of which: - Land and buildings 2,406- Plant, machinery and equipment 156- Furniture and vehicles –
“Other Variations” essentially include adjustments to the fair price of tangible assets acquired when taking control of SteriGenics International Inc.
IX. STATEMENT OF TANGIBLE FIXED ASSETS (CONTINUED)Land and Plant, machinery Furniture and buildings and equipment vehicles
(in 000 EUR) (heading IV.A) (heading IV.B.) (heading IV.C.)
C. DEPRECIATIONS AND WRITE-OFFS
At the end of the previous period 4,897 26,600 4,137Changes during the period :
- Recorded 3,359 21,403 1,143- Write-backs (–) – (73) (23)- Written down after sales and disposals (+) (–) (44) (66) –- Transfers from one heading to another (+) (–) – (104) –- Translation differencies (+) (–) 242 775 45- Other variations 183 1,075 –
At the end of the period 8,637 49,610 5,302
D. NET BOOK VALUE AT THE END OF THE PERIOD (a)+(b) – (c) 79,631 148,419 3,165
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26 IBA 2000 - Financial report
XI. STATEMENT OF CONSOLIDATED RESERVES (in 000 EUR) Amounts
Consolidated reserves at the end of the previous period (+) (– ) 5,747Changes during the period :
- Group’s share in consolidated profit (+) (–) 7,026- Other variations (+) (–) (1)(to be broken down for important sums not attributed to the Group’s share in consolidated profits)
- Of which: Incorporation of reserves into capital (1)
Consolidated reserves at the end of the period (+) (– ) 12,772
X. STATEMENT OF FINANCIAL ASSETSCompanies accounted for using the equity method Other companies
(in 000 EUR) (heading V.A.1) (heading V.B.1)
1. SharesACQUISITION COSTAt the end of the previous period – 28Changes during the period :
- Acquisitions 541 55- Sales and disposals (–) – –- Transfers from one heading to another (+) (–) – –- Translation differences (+) (–) – –
At the end of the period 541 83
WRITE-DOWNSAt the end of the previous periodChanges during the period :
- Recorded 191 –- Written back as superfluous (–) – –- Acquired from third parties – –- Written down after sales and disposals (–) – –- Translation differences(+) (–) (9) –- Transferred from one heading to another (+) (–)
At the end of the period 182 –NET BOOK VALUE AT THE END OF THE PERIOD 359 83
2. ReceivablesACQUISITION COST AT THE END OF THE PREVIOUS PERIOD – 2,299Changes during the period :
- Additions – 95- Reimbursement (–) – (1,131)- Amounts written down (–) – –- Write-backs – –- Translation differences (+) (–) – 88- Others (+) (–) – –
NET BOOK VALUE AT THE END OF THE PERIOD 1,351ACCUMULATED AMOUNTS WRITTEN DOWN ON RECEIVABLES AT THE END OF THE PERIOD – –
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27 IBA 2000 - Financial report
XII. STATEMENT OF CONSOLIDATION DIFFERENCES AND DIFFERENCES RESULTING FROM THE APPLICATION OF THE EQUITY METHOD
Consolidation differences Differences resulting from the application of the equity method
(in 000 EUR) positive negative positive negative
Net book value at the end of the previous period 217,192 – – –Changes during the period :- Variations due to increases in percentage holdings 215 – 3,550 –- Depreciation (12,544) – (65) –- Differentials carried over into results – – – –- Other variations* 19,099 – 3 –
Net book value at the end of the period 223,962 – 3,488 –
* The “Other variations” recorded to goodwill include:• Adjustments in a net amount of KEUR 3,240 operated on the identifiable assets and liabilities acquired in order to take account of
complementary indications following taking control of Griffith Micro Science International Inc., SteriGenics International Inc. and WellhöferDeutschland GmbH ; according to paragraph 71 of the IAS 22 International Accountancy Standard (revised in 1998), such adjustmentsshould be allocated to conversion differences if they occur before the end of the first financial year open after the acquisition;
• For the balance, the conversion differences resulting from the application of the closing euro rate to the acquisition differences and theirdepreciation charge denominated in the local currencies of the foreign companies owning the holdings.
XIII. STATEMENT OF DEBTS
A. BREAKDOWN OF DEBTS ORIGINALLY PAYABLE AFTER ONE YEAR ACCORDING TO THEIR RESIDUAL TERM
DEBTSDue during the Not due within the Due over
year year but at most within 5 years(in 000 EUR) (heading XIA.) 5 years(heading X.) (heading X.)
Financial debts1. Subordinated loans – – –2. Unsubordinated debenture loans – – –3. Leasing and similar rights 2,354 1,671 1,6314. Credit institutions 19,291 177,036 –5. Other loans - 20,847 26,916
Trade debts1. Suppliers – – –2. Notes payable – – –
Advances received on contracts in progress – – –
Other debts 1,558 – 4,490
TOTAL 23,203 199,554 33,037
B. DEBTS (OR PARTS THEREOF) COVERED BY REAL GUARANTEES CONSTITUED OR IRREVOCABLY PROMISED ON THE ASSETS
OF THE ENTERPRISES INCLUDED IN THE CONSOLIDATION (INCLUDED UNDER HEADINGS X AND XI, LIABILITIES)
(in 000 EUR) Amounts
Financial debts
1. Subordinated loans –2. Unsubordinated debenture loans –3. Leasing and similar debts –4. Credit institutions 1,0495. Other loans 30,850
TOTAL 31,899
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28 IBA 2000 - Financial report
C. EXTRAORDINARY RESULTS
(in 000 EUR) Year
C1. Breakdown of other extraordinary revenues (heading XIV.F)- Indemnities received from Insurance Companies 222- Other extraordinary revenues 436
C2. Breakdown of other extraordinary charges (heading XV.F)- New equity issue expenses 5,309- Other extraordinary revenues 1,323
D. INCOME TAXES
(in 000 EUR) Year
D2. Effects of the extraordinary results on the amount of income taxes on the current period 2,420
For the calculation of the impact of these extraordinary results on the net current income, a fictitious taxable rate of 40% wasused.
XIV. RESULTS FOR THIS YEAR AND THE PREVIOUS YEAR
A. SALES (HEADING I.A. OF THE INCOME STATEMENT)
The breakdown of sales by market is the following:
Industrial sector: 69%
Medical sector: 31%
The share of sales made in Belgium amounts to 44.016 KEUR.
B. AVERAGE NUMBER OF PERSONS EMPLOYED
Fully consolidated companies
(in units) This year Previous year
B1. Average headcount 1,234 1,186Blue-collar workers 541 511Employees 580 557Management personnel 33 28Others 80 90
B3. Average number of persons in Belgium by companies belonging to the Group 237 231
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29 IBA 2000 - Financial report
XV. RIGHTS AND COMMITMENTS NOT ACCRUED IN THE BALANCE SHEET(in 000 EUR) Year
Amount of personal guarantees set aside or irrevocably promised by companies included in the scope of consolidation as loan securities or to cover third-party liabilities 32,044
Commitment to acquire fixed assets 629
Commitment in relation to repayable advances from the Walloon Region 672
Existing real guarantees 31,899
Rights and commitments resulting from operations because of interest rates* 83,454
Rights and commitments resulting from operations because of exchange rates 24,035
Other rights and commitments 2,379
(*) In June 2000, the Company concluded a rate swap contract for a nominal amount of USD 75,000,000 expiring in January 2005 (IBA paying thefixed rate and receiving the 3-monthly variable rate) intended to cover its exposure to rate risk on a part of the syndicated loan of USD 175 million takenout at the beginning of the financial year.
(in 000 EUR) Year
Guarantee received from restitution of deposit 2,040
XVI. DISPUTES IN PROGRESS
The Group is currently involved in several disputes and
cannot rule out being further involved in future proce-
dures or disputes. However, the risks that these disputes
might occasion are either judged to be insignificant or
unquantifiable, or – when potential damages are quantifi-
able – adequately covered by provisions. The development
of the disputes in progress at the end of the financial year
are mentioned in this note.
Development of disputes in progress at December 31,
1999 mentioned in the 1999 Annual Report
• Tax claim:
The Belgian tax authorities who were demanding a sum
of 766 thousand EUR from IBA in respect of the finan-
cial year 1994 have recognized the merit of the
Company’s position in refuting this restatement and have
in consequence totally renounced their demand.
• Arbitration procedure with Theragenics:
IBA had instituted an arbitration procedure against
Theragenics because this company, in the context of a dis-
pute with IBt, another IBA customer, challenged IBA’s
intellectual property of certain technologies developed by
IBA.
Theragenics and IBt having managed to reach an out-of-
court settlement on their side, IBA and Theragenics have
also signed an agreement putting an end to their differ-
ences.
Principal disputes arising in the course of the 2000 finan-
cial year, and in progress at December 31, 2000
• Dispute with the Titan Corporation:
The American Titan Corporation, which designs and man-
ufactures linear electron accelerators, irradiation systems
and electronic pasteurization systems, has deposited patents
relating to the design of conveyors integrated into a system
of irradiation by electrons and X-ray.The Titan Corporation
has publicly argued the existence of these patents to
announce that it held an unavoidable position in food
pasteurization by electron beams and X-ray.
IBA is formally contesting both the validity and the
inescapability of the patents in question, together with the
commercial argumentation employed by Titan, and has
therefore instituted, conjointly with its subsidiaries
SteriGenics Inc., Griffith Micro Science International Inc.
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30 IBA 2000 - Financial report
and Radiation Dynamics Inc., an action before the
American courts in order to (i) solicit the invalidation of
Titan’s main patent, and (ii) sue for misleading advertiz-
ing, unfair competition, and infringement of federal com-
petition legislation.
IBA has also asked the court to confirm that the steriliza-
tion and ionization center at Bridgeport, New Jersey, the
construction of which by the SteriGenics company is
being finalized at the beginning of 2001, does not infringe
the Titan patents, even if their validity should be recog-
nized.
Proceedings are in progress before the Federal Court of
California. IBA is confident of the outcome of the dis-
pute, but it is nevertheless difficult to assess the length of
the proceedings, which could prove to be long and com-
plicated.
• Dispute with the Cofrar company:
IBA has been cited before the Commercial Court of Paris
by the French company Cofrar, which is maintaining that
IBA made use during a congress of presentation docu-
ments allegedly obtained from information communicat-
ed to IBA in performance of a co-operation agreement
concluded by the two companies in 1996. Cofrar has
obtained the designation of an expert, whose report is par-
tially contested by IBA. It is probable that Cofrar will be
requesting compensation for the prejudice it thinks it has
suffered, and IBA intends to contest any such request.
XVII. FINANCIAL RELATIONS WITH THE DIRECTORS OF THE CONSOLIDATING COMPANY
(in 000 EUR) Year
A. Global amount of the remuneration allocated by means of the duties in this consolidating company, in subsidiary companies and associated companies, including the amounts of retirement pensions allocated in similar manner to former directors or managers. 1,049
B. Global amount of the advances and loans accorded by the consolidatingcompany, by a subsidiary company or by an associated company –
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31 IBA 2000 - Financial report
RAPPORT DU COLLÈGE DES COMMISSAIRES
SUR LES COMPTES CONSOLIDÉS DE L’EXERCICE
CLÔTURÉ LE 31 DÉCEMBRE 2000PRÉSENTÉ À L’ASSEMBLÉE GÉNÉRALE DES ACTIONNAIRES DE LA SOCIÉTÉ ION BEAM APPLICATIONS S.A.
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32 IBA 2000 - Rapport financier
ASSETS (in 000 EUR) 2000 1999 1998
FIXED ASSETS 640,478 585,844 17,629
I. Formation expenses – –
II. Intangible assets 18,781 10,910 6,308
III. Tangible assets 5,473 4,424 4,519
A. Land and buildings 1,322 1,052 1,110B. Plant, machinery and equipment 73 162 258C. Furniture and vehicles 770 698 538D. Leases and similar rights 2,406 2,509 2,613E. Other tangible assets – – –F. Assets under construction and advance payments 902 3 –
IV. Financial assets 616,224 570,510 6,802
A. Investment in equity companies 616,139 570,481 6,4791. Participating interests 552,275 527,601 6,4792. Receivables 63,864 42,880 –
C. Other financial assets 85 29 3231. Shares and parts 84 28 –2. Receivables and securities in cash 1 1 323
CURRENT ASSETS 158,029 68,897 81,965
VI. Stocks and contracts in progress 37,481 31,942 17,210
A. Stocks 25,723 2,497 2,6651. Raw materials and consumables 1,471 782 8132. Work in progress 24,203 1,682 1,8053. Finished goods 49 33 46
B. Contracts in progress 11,758 29,445 14,545
VII. Amounts receivable within one year 15,596 32,554 12,872
A. Trade receivables 11,785 28,605 12,243B. Other receivables 3,811 3,949 629
VIII. Short term deposits 101,730 3,770 49,733
B. Other deposits 101,730 3,770 49,733
IX. Cash and cash equivalents 2,580 524 569
X. Deferred charges and accrued income 642 107 1,581
TOTAL ASSETS 798,507 654,741 99,594
IBA SA ANNUAL ACCOUNTS AFTER APPROPRIATION
The annual accounts for IBA SA are presented according
to an abridged model. In accordance with the laws for
commercial companies, the complete annual accounts and
the corresponding statutory auditor's report have been
deposited at the National Bank of Belgium. These docu-
ments can also be obtained on request from IBA Head
Office Belgium. The college of auditors has given uncon-
ditional certification of the annual accounts for IBA SA.
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33 IBA 2000 - Financial report
LIABILITIES (in 000 EUR) 2000 1999 1998
SHAREHOLDERS’ EQUITY 369,789 203,926 30,198
I. Capital 33,456 27,704 22,857
A. Issued capital 33,456 27,704 22,857B. Uncalled capital (–) – – –
II. Additional paid-in capital 334,079 168,810 11
IV. Reserves 745 745 745
A. Legal reserve 542 542 542C. Untaxed reserves 203 203 203
V. Accumulated profit/loss 1,103 6,191 6,497
VI. Investment grants 406 476 88
PROVISIONS AND DEFERRED TAXES 5,220 3,912 4,858
VII. A. Provisions for liabilities and charges 4,947 3,912 4,858
1. Pensions and similar obligations 50 62 734. Other liabilities and charges 4,897 3,850 4,785
B. Deferred taxes 273 – –
DEBTS 423,498 446,903 64,538
VIII. Accounts payable after one year 364,165 239,949 43,860
A. Financial debt 173,680 2,049 2,1653. Leasing and similar obligations 1,919 2,049 2,1654. Credit institutions 171,761 – –
C. Advances received on contracts in progress – 46,927 38,076D. Other debts 190,485 190,973 3,619
IX. Amounts payable within one year 53,278 206,419 19,496
A. Current portion of long term debt 17,595 2,810 2,297B. Financial debt 3,754 179,281 –
1. Credit institutions 3,754 179,281 –C. Trade debts 18,288 17,999 6,045
1. Suppliers 18,288 17,999 6,045D. Advances received on contracts in progress 9,828 3,432 9,422E. Taxes, remuneration and social security 2,718 2,067 1,732
1. Taxes 1,126 1,059 6652. Remuneration and social security 1,592 1,008 1,066
F. Other debts 1,095 830 –
X. Accrued charges and deferred income 6,055 535 1,182
TOTAL LIABILITIES 798,507 654,741 99,594
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34 IBA 2000 - Financial report
INCOME STATEMENT (in 000 EUR) 2000 1999 1998
I. Operating income 66,371 45,449 40,906
A. Sales 42,756 23,326 28,515B. Increase/decrease in stocks of finished goods, work
and contracts in progress (+) (–) 4,850 14,764 8,411C. Fixed assets – own production 12,419 7,262 3,615D. Other operating income 6,346 97 366
II. Operating expenses (– ) – 53,011 – 35,698 – 30,883
A. Raw materials, consumables and goods for resale 19,379 18,854 14,7131. Raw materials 20,068 18,822 14,7302. Increase/decrease in stocks (–) (+) –689 32 –18
B. Services and other goods 16,719 6,569 6,294C. Remuneration, social security and pensions 9,403 7,599 6,854D. Depreciation and other amounts written off 5,807 3,592 3,387E. Reduction of value in stocks, contracts in 630
progress, and commercial receivables (charges +, write backs –) (notes XII, D),formation expenses on tangible and intangible assets.
F. Provisions for liabilities and charges 1,035 –946 –404(charges +, utilization and write-backs –)
G. Other operating expenses 38 30 40
III. Operating income (+) 13,360 9,751 10,023
IV. Financial income 15,871 16,644 9,280
A. Income from financial assets 5,279 2,404 212B. Income from current assets 5,469 2,855 7,234C. Other financial income 5,123 11,385 1,834
V. Financial expenses (– ) – 28,331 – 26,415 – 8,073
A. Interest expense 25,361 12,741 6,625B. Amounts written off on current assets – – 1
other than under II.E (charges +, write-backs –)C. Other financial expenses 2,970 13,674 1,447
VI. Profit before taxes (+) 900 – 11,231
Loss before taxes (–) – –20 –
VII. Extraordinary income – 12,636 –
D. Gain on disposal of fixed assets – 12,636 –
VIII. Extraordinary expenses (– ) – 5,310 – 12,922 – 1,046
E. Other extraordinary expenses –5,310 –12,922 –1,046
IX. Profit for the period before taxes (+) – – 10,185
Loss for the period before taxes (–) –4,410 –306 –
X. Income taxes (– ) (+) – 677 – –
A. Taxes (–) –677 – –B. Tax adjustments and write-backs of provisions for taxes
XI. Profit for the period (+) – – 6,773
Loss for the period (–) –5,087 –306 –
XII. Transfer from untaxed reserves (+)
Transfer to untaxed reserves (–) – – –
XIII. Profit for the period to be appropriated (+) – – 6,773
Loss for the period to be appropriated (–) –5,087 –306 –
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35 IBA 2000 - Financial report
APPROPRIATION OF RESULTS (in 000 EUR) 2000 1999 1998
A. Profit to be allocated 1,104 6,191 6,835
Loss to be allocated (–)1. Profit for the period to be allocated – – 6,773Loss for the period to be allocated (–) –5,087 –306 –
2. Profit carried forward from previous year 6,191 6,497 62Loss carried forward from previous year
B. Withdrawals from shareholders’ equity
1. Capital and share premium account2. Reserves
C. Allocation to shareholders’ equity (– ) 1 – – 339
1. Capital and share premium account 1 – –2. Legal reserve – – 3393. Other reserves – – –
D. Result carried forward
1. Profit carried forward (–) –1,103 –6,191 –6,4972. Loss carried forward – – –
E. Loss made good by shareholders
F. Distributable profit (– ) – – –
1. Remuneration of shareholders – – –
STATEMENT OF CAPITAL (in 000 EUR) Amounts Number of shares
A. Capital
1. Subscribed capitalAt the end of the previous financial year 27,704Changes during the financial year
Increase in capital by public subscription 5,001 3,700,000Incorporation into capital of profit brought forward 1 –Increase of capital by exercise of subscription rights 750 174,793
At the end of the financial year 33,4562. Capital representation
2.1. Classes of sharesOrdinary shares without designation of face value 20,229 14,734,590Ordinary shares without designation of face value. Strip VVPR 13,227 9,635,028
2.2. Nominal or bearer sharesNominal shares 11,379,439Bearer shares 12,990,179
C. Own shares held by
The Company itselfIts subsidiaries 548 399,327
D. Share issue commitments
2. Following exercise of subscription rightsNumber of subscription rights in circulation 790,507Capital amount to be subscribed 2,137Maximum number of shares to be issued 790,507
E. Unsubscribed authorized capital 19,421
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36 IBA 2000 - Financial report
SHAREHOLDERS – DECLARATION OF TRASPARENCY ON JUNE 6, 2000Number of shares %
The last dcelaration of transparency issued by IBA’s shareholders before 12/31/2000 is dated June 6, 2000 and contains
the following information:
Belgian Anchorage 6,840,840 28.3
Belgian Leverage 2,300,000 9.5
UCL 532,885 2.2
Sopartec 941,185 3.9
Institut National des Radioéléments (IRE) 827,200 3.4
IBA Investments SCRL 255,225 1.1
Float 12,497,490 51.7
TOTAL 24,194,825 100.0
See also “Shareholders”, page 41, part one of this Annual Report.
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1) Registered name: Ion Beam Applications SA,
Abbreviated as IBA
2) Head Office: Chemin du Cyclotron, 3 in B-1348
Louvain-la-Neuve (Belgium).
3) Creation, legal structure and duration: IBA was cre-
ated for an unlimited duration on March 28, 1986, in
the form of a legal structure of a corporation under the
laws of Belgium. IBA is a commercial company making
or having made public offerings.
4) Objective of the company (Article 3 of the Articles of
Association): The objective of the company is the
research, development and acquisition of industrial
property rights, for the purpose of developing, manu-
facturing, and marketing applications and equipment in
the area of applied physics. It may conduct all opera-
tions bearing on transferable securities, real property,
and financial, commercial or industrial transactions
directly or indirectly pertaining to its company objec-
tive. It may acquire a financial interest in the form of
new capital, merger, and subscription or in any other
manner in ventures, associations or companies with
similar, analogous, related or useful objectives to
achieve all or part of its company objective.
5) Consultation of company documents: The company’s
own and consolidated accounts are filed with the
National Bank of Belgium. The Articles of Association
may be obtained from the Office of the Clerk of the
Commercial Tribunal of Nivelles. These documents as
well as the annual and half-year reports and all informa-
tion published for the sake of shareholders can also be
requested by shareholders at the company’s Head Office.
6) Authorized capital: At December 31, 1999, the
authorized capital of IBA stood at 33,455,862 EUR
and was represented by 24,369,618 shares without des-
ignation of face value, entirely released, including
9,635,028 shares with VVPR strips. In addition, the
company has issued 538,300 warrants in favor of its
employees (“1998 plan”). The majority of these war-
rants make it possible to subscribe to new shares at a
price of 4.2885 EUR per share, during certain periods
and according to certain terms, between June 1, 2000
and February 28, 2004, and with preferential rights in
the event of a public offering launched on IBA shares
or an increase in stockholders’ equity. At December 31,
2000, a total of 363,507 warrants were issued accord-
ing to the 1998 plan, of which 337,807 were attributed
at an average year price of 5.77 EUR. In June 2000, the
company issued additional warrants in favor of the
Group’s employees (“2000 plan”); these warrants will
make it possible to subscribe to new shares. At
December 31, 2000, a total of 380,450 warrants had
been attributed according to the 2000 plan at an aver-
age year price of 27.96 EUR.
7) Authorized capital: The extraordinary General
Meeting of May 12, 1999 authorized the Board of
Directors to increase the authorized capital in one or
more steps by a maximum amount of 25,000,000 EUR.
This authorization is valid for a period of 5 years, in
other words until June 10, 2004. At December 31, 2000,
following the capital increase in January 2000 and the
issue of 427,000 warrants in June 2000, the non-utilized
capital balance amounted to 19,420,781 EUR.
37 IBA 2000 - Financial report
GENERAL INFORMATION
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38 IBA 2000 - Financial report
8) Evolution of shareholders’ equity during the past four years :
Operation No. of shares Equity (in EUR)Movements Total Variation Amount
12/31/96 Situation on this date 14,009,590 4,554,023
07/11/97 Exercise of 871,600 warrants out of 900,000 Issued in December 1996 in favor of the company’s personnel + 871,600 14,881,190 + 283,325 + 4,837,348
03/04/98 Increase in capital through conversion of UCL’s 500,000 founders’ shares into an equal number of ordinary shares + 500,000 15,381,190 + 162,532 + 4,999,880
05/29/98 Reverse one-for-five stock split 3,076,238 4,999,880
06/19/98 New equity issue (stock exchange listing) + 300,000 3,376,238 + 17,848,334 22,848,214
06/19/98 Exercise of 28,400 warrants outstanding from the 1996 plan + 5,680 3,381,918 + 9,231 22,857,445
03/23/99 Increases in capital – New capital equity issue + 717,047 + 4,846,389– Incorporation of reserves - 4,098,965 + 165 27,704,000
06/11/99 New representation of capital (five-for-one stock split) 20,494,825 27,704,000
02/02/00 Increases in capital– New equity issue + 3,700,000 + 5,001,290– Incorporation of reserves - 24,194,825 + 710 32,706,000
07/06/00 Exercise of warrants from the 1998 plan + 169,568 24,364,393 + 727,447 33,433,447
11/07/00 Exercise of warrants from the 1998 plan + 5,225 24,369,618 + 22,415 + 33,455,862
9) Patents and technologies: IBA is careful to take out
a patent on any patentable invention for which the
patent represents efficient protection. However, much
of its expertise also resides in know-how that is not
patentable or for which the filing of a patent is likely
to give competitors information to build on the tech-
nology used at IBA. These aspects are not patented.
More fundamentally, the company takes the view
that it is its technological advance more than such
patents that afford it best protection against its com-
petitors. IBA nonetheless holds several important
patents that the management does not, however,
consider to be of vital importance to the company.
In the case of the Rhodotron, for example, IBA took
licenses in the patents of third parties and paid them
royalties.
The acquisitions in the last few years have allowed
the Group once again to reinforce its expertise in the
field of particle accelerators and to expand its know-
how in new areas, such as Cobalt and EtO tech-
nologies.
10) License and co-operation agreements:
Cyclotron technology
The first license agreement concluded by IBA for a
duration of 20 years was that of March 1986 with
the Catholic University of Louvain, for the produc-
tion of the Cyclone 30. This license, exclusive
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39 IBA 2000 - Financial report
world-wide, enabled IBA to develop, produce and
sell the cyclotron technologies developed at the
UCL by Yves Jongen. It further enabled IBA, with
the approval of the UCL, to issue sub-licenses.
This agreement involved the payment of royalties to
the UCL on the net proceeds of the sales of systems
integrating one or more of the elements covered by
these patents. In addition, the UCL has the use of
the first model of the IBA Cyclone 30.
Protontherapy
In October 1991, IBA signed a co-operation agree-
ment for 10 years with Sumitomo Heavy Industries
Ltd. (SHI), a company under Japanese law, for the pur-
pose of developing, manufacturing and selling proton
therapy systems based on a division of the territory.
According to the agreement, IBA and SHI are co-
owners of the jointly developed technology. Sumitomo
holds the rights to produce and market the systems
throughout Asia, Oceania and the Middle East (not
including Israel), while IBA has the same rights for
the rest of the world. Each party collects royalties on
sales effected by the other party in those territories
reserved for the first party, and has the right of final
refusal in the matter of sub-contracting.
Rhodotron
In December 1991, IBA signed a co-operation and
license agreement with the French Atomic Energy
Commission headquartered in Paris, for the pur-
pose of the development and industrial use of the
Rhodotron. This license expires in December 2003.
The Rhodotron was patented in 1989; the agree-
ment with the French Atomic Energy Commission
contains a technology transfer program for the
design and construction of Rhodotrons. One of the
conditions of the contract was the maintenance in
Europe of the production of the equipment,
regardless of the geographical location of the
client. The license was awarded to IBA on an
exclusive, non-transferable basis for 12 years,
thereafter tacitly renewable at 2-year intervals,
against payment of an initial fee plus royalties, on
condition that IBA remained active in this market.
In case of non-renewal, the license would lose its
exclusivity.
All developments realized by IBA under this agree-
ment are the exclusive property of IBA and a cer-
tain number of these developments have been pro-
tected by patents owned exclusively by IBA.
11) Investment policy
(in 000 EUR) 2000 1999 1998
Acquisitions 7,601 10.4% 337,857 89.8% 6,479 54.2%
R&D capitalized 14,560 19.9% 8,691 2.3% 3,319 27.8%
Net acquisition 50,967 69.7% 29,609 7.9% 2,145 18.0%value of assets (excluding R&D capitalized)
Total investments 73,128 100.0% 376,157 100.0% 11,943 100.0%
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40 IBA 2000 - Financial report
YOUR CONTACTS:
IBAHeadquarters worldwideChemin du Cyclotron, 31348 Louvain-la-NeuveBelgiumRC Nivelles 054589VAT 428.750.985Tel.: +3210475811Fax: +3210475810E-mail: [email protected]: http://www.iba-worldwide.com
FOR FURTHER INFORMATION:
Vivienne Gaskell, Vice President, Corporate CommunicationsTel.: +3210475971E-mail: [email protected]
François Mirallié, Chief Financial OfficerTel: +3210475807E-mail: [email protected]
Thierry Hazevoets, Director Business DevelopmentTel: +3210475906E-mail: [email protected]
BUSINESS UNITS
AMERICA OPERATIONS
8550 West Bryn MawrSuite 600Chicago, Illinois 60631USATel.: +7738677200Fax: +7738677201
STERILIZATION & IONIZATION
Europe, Middle East, Asia & AfricaAtelaan 4C2200 HerentalsBelgiumTel: +3214258590Fax: +3214224496
ADVANCED RADIOTHERAPY
Stålgatan 1475450 UppsalaSwedenTel.: +4618180700Fax: +4618127552E-mail: [email protected]
RADIOISOTOPES
Chemin du Cyclotron, 31348 Louvain-La-NeuveBelgiumTel.: +3210475858Fax: +3210475810E-mail: [email protected]
TECHNOLOGY GROUP
Chemin du Cyclotron, 31348 Louvain-la-NeuveBelgiumTel.: +3210475821Fax: +3210475847E-mail: [email protected]
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Design & production: ConcertoPhotos: Jacky DelormePrinted in Belgium by Dereume
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