IBA Annual Report 2009

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Strengthened to take on the futureAnnual report 2009

IBA ContactJean-Marc Bothy

Chief Financial Officer

Ph.: +32 10 47 58 90

E-mail: [email protected]

Version française disponible sur demande.

Ion Beam Applications, S.A.Chemin du Cyclotron, 3

1348 Louvain-la-Neuve, Belgium

Ph.: +32 10 47 58 11 – Fax: +32 10 47 58 10

RPM Nivelles - VAT BE 428.750.985


Website: www.iba-worldwide.com

Published by IBA S.A., Chemin du Cyclotron, 3

1348 Louvain-la-Neuve, Belgium.

Design & Production: www.thecrewcommunication.com

This brochure is printed on ECF wood-free coated paper. It

was produced with plants that comply with ISO 14001, the

environmental management standard.

Table of Contents

02 Keyfigures04 Highlights200905 MessagefromtheChairmanandtheCEO05 Returningtoapositiveoutlookin201008 Humanresources10 Researchanddevelopment14 Geographicalpresence16 Managementreport30 IFRSconsolidatedfinancialstatements

fortheyearendedDecember31,200932 Statementof consolidated

financialposition33 Consolidatedincomestatement34 Consolidatedstatementof

comprehensiveincome35 Consolidatedstatementof changesin

shareholders’equity36 Consolidatedcashflowstatement37 Notestotheconsolidated

financialstatements98 Auditor’sreportontheconsolidated

financialstatements102 IBAS.A.annualfinancialstatements106 Corporategovernance,management,

andcontrol116 Generalinformation122 Thestockmarketandshareholders

Introduction

FoundedinLouvain-la-Neuve,Belgium,in1986,IBAdevelopsandmarketsadvancedtechnologies,pharmaceuticalproductsandtailoredsolutionsforthehealthcaresector,withemphasisoncancerdiagnosisandtherapy.Leveragingitsscientificexpertise,IBAisalsoactiveinthesterilizationandionizationfield.IBAisquotedonthepan-EuropeanEURONEXTexchangeandincludedintheBelMidindex.(IBA:ReutersIBAB.BRandBloombergIBAB.BB)

Key elements in 2009: Salesincreasedby8%andreachedEUR359.2million.Theyearclosedwithanetlossof EUR12.3millionresultingfromone-off chargesontwoR&Dprojects.Thischargehadaheavyimpacton2009resultsbutwillnotnegativelyaffectfutureIBAperformance.

Pharmaceuticals:➤ Progressinthedevelopmentof twonew

molecules:Redectane®andAposense®.➤ PositiveassessmentfromtheCommitteefor

MedicinalProductsforHumanUse(CHMP)forScintimun®.

➤ WorkingagreementconcludedwithEczacıbaşi-MonrolNuclearProductsA.S.

➤ PartnershipwithBVCyclotronVUfortheproductionanddistributionof radiopharmaceuticalsinTheNetherlands.

➤ CisbioBioassaysreceivedthe2009 Frost & Sullivan Technology Innovation of the Year Award.

Equipments:➤ Inprotontherapy,twocentersweresold:in

Prague,CzechRepublic,andinTrento,Italy.➤ Launchof moreaccessibleprotontherapy

centers(“ProteusNano”).➤ Saleof 14particleacceleratorsystems.➤ Launchof newCyclone®11cyclotron.➤ Launchof versionsof Compass®and

MatriXXEvolutionsuitableforrotationalradiotherapyequipment.

IBA ANNUALREPORT2009| 1

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2005(EUR ‘000)

2006(EUR ‘000)

2007(EUR ‘000)

2008(EUR ‘000)

2009(EUR ‘000)

CAGR (%)

Salesandservices 136099 170257 213849 332607 359161 27.5%

Grossmargin 43855 53345 69845 112335 131311 31.5%

REBITDA(1) 11118 17963 18269 26143 25433 23.0%

REBIT(2) 3095 9769 11788 10751 7306 24.0%

REBIT/Salesandservices 2.3% 5.7% 5.5% 3.2% 2.0%

Netprofit 3048 29989 13846 5329 -12293

Capitalexpenditure 6788 13585 23772 33701 31328 46.6%

Researchanddevelopmentexpenses 9689 10028 17167 27001 28982 31.5%

Equity 103877 136329 141481 152366 144142 8.5%

Netcashposition 18297 43996 32028 17806 -17061

Currentliabilities 58623 78767 118658 200914 177543 31.9%

Totalassets 202755 266868 324438 510695 479643 24.0%

Returnonequity 2.9% 22.0% 9.8% 3.5% -8.5%

Returnoncapitalemployed(ROCE) 2.1% 5.2% 5.7% 3.5% 2.4%

SharepriceatDecember31(Euro) 7.65 18.36 19.00 7.75 8.45 2.5%

Numberof shares 24842453 25465066 25800252 26563097 26719155 1.8%

Netearningspershare(Europershare) 0.12 1.18 0.54 0.20 -0.46

Price/Earnings 62.35 15.59 35.40 38.63 -18.37

Marketcapitalization 190045 467539 490205 205864 225777 4.4%

Bookvaluepershare(Europershare) 4.18 5.35 5.48 5.74 5.39 6.6%

Dividendpershare 0.00 0.00 0.17 0.08 0.00

Enterprisevalue 171748 423543 458177 188058 242838 9.0%

EV/REBITDA 15.4 23.6 25.1 7.2 9.5

EmployeesatDecember31 900 1076 1360 2067 1988 21.9%

Sales trends by business unit2005

(EUR ‘000)2006

(EUR ‘000)2007

(EUR ‘000)2008

(EUR ‘000)2009

(EUR ‘000)CAGR

(%)

SAlES

Pharmaceuticals 45713 66087 78265 149971 203587 45.3%

Protontherapy 27190 32539 59343 86191 70689 27.0%

Dosimetry 28031 31570 35240 37557 39815 9.2%

Otheraccelerators 35165 40061 41001 58888 45070 6.4%

RECURRInG oPERATIonAl PRofIT/(loSS)

Pharmaceuticals 4545 247 3205 2918 1135

Equipments 7640 9522 8583 7833 6171 -5.2%

Key figures

(1) REBITDA: Recurring earnings before interest, taxes, depreciation, and amortization.(2) REBIT: Recurring earnings before interest and taxes.

2 | IBA ANNUALREPORT2009

Sales trends by geographic sector

Sales trends R&D 2009

Change in number of employees and employee distribution worldwide

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Change in number of employeesEmployee distribution worldwide

74% Equipments

Pharm

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31% France

USA28%

Belgium20%

8 % Germany

7 % RO

W6%

Asia

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(EUR ‘000)

2009


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Highlights 2009

✖ December 18, 2009TheEIBprovidesIBAwithEUR50millionforR&Dprojectsinthefieldsof cancerdiagnosisandtherapy

✖ December 4, 2009IBAprevailsinfirstinstanceinitscancellationclaimof theprotontherapycontractof SkandioninSweden

✖ october 6, 2009LastpatienttreatedintheREDECTANE®phaseIIIregistrationtrial

✖ December 3, 2009IBAandATrePsignacontracttoopenthe1stGantryEquippedprotontherapycenterinTrento(Italy)

✖ november 2, 2009ProteusNano,theNewTwo-RoomSolutionfromIBA

✖ october 29, 2009IBAlaunchesMaxiPRO,aninnovativerentalsolution

✖ october 29, 2009IBAreceivespositiveopinionforSCINTIMUN®

✖ September 21, 2009IBAandAPOSENSEsignstrategiccollaboration

✖ August 28, 2009IBAandEczacıbașı-Monrolrealizedthefirstmajorstepof theMOUsignedinFebruary.Eczacıbașı-Monrolplacedanorderfor4IBACyclone®18systems.

✖ August 27, 2009IBAandPROCUREsetnewworldrecordinprotontherapy,openingtheOklahomaCenterninemonthsaheadof standardschedule.

✖ July 26, 2009IBADosimetrylaunchesnew3Dwaterphantom

✖ May 29, 2009IBAandBVCyclotronVUextendpartnershipinPETtracerssupply

✖ May 8, 2009IBAsellsaprotontherapysysteminPrague

✖ March 24, 2009IBAsellsanewversionof itsfamousCyCLONE30®inGermany


What conclusions will you draw from last year and how do you see 2010?Iamnotgoingtosaythatweareattheendof thetunnelbutthereareencouragingsignsasfarasprojectfinancingisconcerned.Thesecondhalf of 2009sawusreturntoourpreviouslevelswiththesaleof 14acceleratorsystemsandtwoprotontherapysystems.So2010hasstartedonasolidplatform.

Partof ourobjectiveshasalreadybeenachievedwithaprotontherapycenterorderfromtheProCureProtonTherapyCenterof Somerset,NewJersey,USA,signedandentirelyfinanced.Thetrendispositive.Of course,thestrengthof recoveryintheAmericanpharmaceuticalmarketstillhastobeconfirmed.Havingsaidthis,everybodyseemstosharethebelief inarebound;and2010looksbetterthan2009.Weshouldalsonotethattheunstintingfocusoncancerinpublichealthpoliciesisafavorablesignforthisindustry.

What do you consider to be the most important facts of this atypical year?Principally,theprogresswehavemadeinthedevelopmentof twonewradiopharmaceuticalmoleculesinPositronEmissionTomography(PET):Redectane®andAposense®.Thefirst,amarkerwhichwillleadtomajoradvancesinthediagnosisof renalcancer,obtainedPhaseIIIinOctoberaftersuccessfulclinicaltestson226patients.Thesecondisanewagentforthemolecularimagingof apoptosis(orprogrammedcelldeath).CooperationagreedlastSeptemberbetweenIBAandAposenseLtdwillenablethisradiotracertostarttheclinicaltrialphasewithastrongchanceof success.Aposense®detectsthebiologicalprocessof programmedcelldeathataveryearlystage.Theoutcomeisanewgenerationof tracersthatwilladvanceevenfurtherthediagnosisandtreatmentof diseases,especiallycancer.

OnOctober29thIBAreceivedapositiveassessmentfromtheCommitteeforMedicinal

Returning to a positive outlook in 2010, after a frustrating 2009Theyear2009willberememberedforitseconomiccrisis,althoughIBApreparedwellforthesituationandmadesignificantprovisionsforit.Theyearneverthelessendedwithalossduetoone-off chargesagainsttwoR&Dprojectswhichhaveaheavyimpactonlastyear’sresultsbutwillnotadverselyaffectfutureIBAperformance.Amixedresulttherefore,butheraldinginamuchbrighteroutlookfor2010,followingstrongerequipmentordersattheendof 2009.WiththeorderbookcurrentlystandingatmorethanEUR200million,therearepositivesignsandwecanlookforwardtothefuturewithmoreconfidence.

Message from the Chairman and the CEo

Peter Vermeeren Chairman of the Board of directors (right)Pierre Mottet Chief Executive Officer (left)

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ProductsforHumanUseconcerningauthorizationforthemarketintroductionof Scintimun®.Thisproductwillbeusedinscintigraphicimagingforthedetectionof certaininflammationsandinfections.

The strategy of partnerships seems to be paying off. Where are you today? Onastrategiclevel,twopartnershipssignedinthefirstsixmonthsof 2009enableourcustomerstobenefitfromanetworkof 50PETradiopharmaceuticalproductionanddistributionsitesonthreecontinents.Iamthinkingparticularlyof theagreementmadeinFebruarywiththecompanyEczacıbaşi-MonrolNuclearProductsA.S.todevelopthePETradiopharmaceuticalandSPECT(SinglePhotonEmissionCombinedTomography)marketintheBalkans,theMiddleEastandNorthAfrica,aswellasinCentralandEasternEurope.

InMaywealsotiedupapartnershipwithCyclotronVUBV,basedinAmsterdam,fortheproductionanddistributionof Fluor-18markedradiopharmaceuticalsusedinPET.

Lastly,Idon’twanttoendthesummaryof ourpharmabusinesswithoutmentioningthattheCisbioBioassaysdivisionreceivedthe2009 Frost & Sullivan Award for Technology Innovation of the Year.ThisawardshowsonceagaintheesteeminwhichIBAisheldforitsresearchperformance,irrespectiveof thesector.Oureffortsarestill,morethanever,focusedonresearchandinnovation.

InprotontherapyIwouldliketomentionthesaleof twocenters,oneinPragueandtheotherinthenewhospitalinTrento,inthenorth-eastof Italy.

Finally,wehavelaunchedsmallerprotontherapycenters(“ProteusNano”)inordertomakethisformof treatmentmoreaccessiblebyprovidingevenmorecostefficientsolutions.

Does your development and innovation strategy also carry some risks?Thereisaninherentriskinbeingactiveinemergingtechnologies.Nevertheless,innovationistheelementthatenablesustolookatthefuturewithconfidence,thankslargelytoourreorientationtowardsthedevelopmentof newproprietarymoleculesthatarehighlypromising,bothforpatientsandhealthinsurancesystems.Soyes,wecanhavetechnologicalcrises.Breakthroughproductssometimescreateunforeseenextracosts,buteveryoneknowsthatthisisthenameof thegame.

TheselastfewyearsthecompanyhasconsiderablyincreaseditsinvestmentinR&Dinordertomaintainitstechnologicalleadershipinanincreasinglycompetitiveenvironment.Thisisespeciallytrueintheareasof protontherapyandmolecularimagingequipment.Duringthefirstfewweeksof 2010,aspartof thepreparationof ourannualaccounts,wehadaverycloselookatthevaluationof outstandingcostsandprobabledelaysinthecompletionof ourhigh-valuetechnologicalprojects,particularlythosewhichincludeworld-firsts.Weconcludedfromthisexaminationthatwewouldbeunabletopreventsignificantadditionalcostsinthecompletionof twoof theseprojects.Itisinawaythepriceforourlong-terminsurance!Becauseforus,intermsof innovationourworld-firstsrepresentthebestpossiblebusinessshowroom.Weshouldputthesecostsincontext:ourdebtislow,ourfinancialcapacityissolidandtheEuropeanInvestmentBankhasjustgrantedusaEUR50millionloan.Remembertoothat70%of ourturnoverisgeneratedbyrecurrentcontractsandthatweplantostartpayingdividendsagainin2011.

Speaking of the future, will the focus remain on cancer? or will we see a move towards other markets?Oncologyremainsourpositioning,absolutely.Thisisthesectorinwhichwearethemostsociallyuseful.Themarketisinaprocessof consolidation,especiallyprotontherapy.Onecouldsaythattheoncologyfieldiscurrentlyinatransitionphase,


wherewearemarketingourestablishedportfoliobutwiththeknowledgethattwoadvancedproductswillarrivein2011and2014,forwhichwearealreadypreparingtheground.Thesetwoproprietarymoleculesappearingonthehorizonarealsolinkedtotheprogressof ourresearchoncancertreatment.Inthiswaywecanensurethatweretainleadershipinthesectorwhilecontinuingtoincreaseourbottomlinenetmargin.Thisiswheretherealchallengelies.Wearecontributingtocreatingthemedicineof tomorrow,characterizedbyapersonalizedapproachandmanycomplementaritiesbetweenourvariousactivities.Webelievethatthisstrategyisvitalinordertoadvancethefightagainstcancer,withevermoreeffectivetreatmentsandever-decliningsocialcosts.IBAisakeyplayerinthismovement.Weaimtoexpandthismarketwithinafive-yearperiod;ourcapacitytodevelophighaddedvaluecompetitiveproductsjustifiesthisapproach.If youconsiderourrecurrentturnover,ourinnovationsreadyformarketandtherichnessof ourpipeline,wearereadytoconquerandconsolidateintheshort-,medium-andlong-term.Thefuturewilldependmoreandmoreontheworkof ourteams–menandwomenwhomIcongratulatehereandnowfortheirexemplarycommitmentinthebattleagainstcancer.

Finally,IwouldalsoliketothankallourshareholdersfortheconfidencetheyhaveshowninIBA.Thisenablesustocontinuethefightwithenergyanddetermination!

IBA ANNUALREPORT2009 | 7

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A robust HR structure and systems to develop employees for the challenges ahead.Asaglobalcompanygrowingstrongly,theIBAGrouphastoensurethatallitsemployeesarereadyandequippedtomeetthechallengescreatedbyconstanttechnologicalchange.Onlybyachievingthiscanthecompanyfulfillitsambitiousmissiontoprotect,enhanceandsavelives.

TohelpmeettheGroup’sstrategicobjectives,HumanResourceshasdevelopedatwo-foldstrategy:ontheonehand,thedevelopmentof employeeskillsandontheother,theimplementationof robusttransversalsystemsandprocessestosupportstaff acrossthecompany.Thedeploymentof thesetwodirectionsisnowbuildingasolidfoundationfortheGroup’sfuturedevelopment.

Thisstrategy,aimedatstrengtheningbothresourcesandstructures,provedevenmoreessentialintheuncertaineconomicclimateof 2009.Duringtheyear,theIBAHRteamfacedadoublechallenge.Firstly,followingtheacquisitionof CISBIOin2008,IBAhadtointegratethemanagementof 600newemployeesintoGroupsystemsandstructureswithoutdisruptingservicequality.Secondly,therewastheneedtodevelophumantalentandpreparepersonnelforthefutureexpansionanticipatedafterlastyear’seconomicdownturn.2009wasthereforeaperiodforconstructingasolidHRfoundationfromwhichtolaunchintothefuture.

A structure for growth: HR organization aligned with strategic objectivesTheoperationalstructureof IBABusinessUnits,heavilydecentralizedandlocatedinnumerouscountriesaroundtheworld,hasnecessitatedthecreationof atwo-dimensionalHRservicestructure:1.TheHRBusinessPartnerswithintheBusiness

Units,functioningasanintegralpartof eachactivity:theirroleistotranslateGroupstrategyintoalong-termHRplanfortheirrespectiveBusinessUnitsandbuildtheannualplanswhichwillbeimplementedbySharedServices.

2.Ateamof SharedServices:organizedbygeographicalzone,thisgroupcarriesouttheprincipaloperationalandtransactionalHRactivities.Onacorporatelevel,itestablishesthegroup’smajorcommonprocesses:➤HRdataadministration➤ Personneldevelopmentandtraining➤ Compensation,PensionandBenefits➤ Recruitment

ThisHRorganizationrespondstocurrentneedsandanticipates,inaflexiblemanner,theexpectedgrowthof activitiesintheyearstocome.

Human resources


HR transversal processes to ensure optimal service quality to employees throughout the GroupThetransformationanddeploymentof commonGroupHRsystemsandprocesseswerepursuedthroughout2009andareduetobecompletedbytheendof thefirsthalf of 2011.Inaddition,themanagementof employeedatainastandardizedHRonlinesystemhasnowbeenestablished.Variousprocedureshavebeensimplifiedandformalized,notablyintheareasof recruitment,internationalmobilityandperformance-managementprograms.

A new HR tool accessible to every employee, for maximum transparencySincetheendof 2009,employeeshaveaccesstoasecureITenvironmentinwhichtheycan,inrealtime,consultorupdatetheirpersonaldata,completeannualandhalf-yearlyevaluations,accessthesettingof theirindividualobjectivesandmakerequestsfortraining.Thistoolofferseverymemberof thestaff atransparentviewof theirindividualobjectives’contributiontothestrategyof theirBusinessUnitandtheIBAGroup.

Development of employee skillsTheIBAstrategicplanhasclearlyidentifiedthatsuccessfulfuturegrowthisdependentonanimmenseeffortdedicatedtocreatingthenecessarymanagementskillsandprovidingthetrainingdemandedbyemployeesandtheneedsof thebusiness.

Toachievethis,IBAinitiatedtwotrainingandskills-developmentprogramsin2009.➤IBALeadershipAcademy:aprogramenabling

managerstodeveloptheirmanagementandteamleadershipskills.

➤IBAEfficiency@Work:aprogramof concretemanagementtoolstohelpGroupmanagersoptimizetheirworkefficiency,whetherworkinginteamsorindividually.Thecompleteprogram,whichwaspilotedin2009,willbedeployedforallmanagersandemployeesthroughouttheGroupoveraperiodof 4years.

Attract top-level talent and strengthen company culture MaintainingleadershipinIBA’sareasof activitydependsonthecapacityof itspersonneltocontinuallyinnovateinfuturetechnologiesandtransformthesetechnologiesintoservicesandproductswithhighaddedvalueforitscustomers.Attractingandretainingthebesttalentisthereforeessential.ThisiswhyIBAconsidersitaprioritytoofferemployeesanextremelystimulatingworkenvironment,whereteamworkiscentral.Likewisethehighlevelof responsibilityofferedeventojuniormanagers.Finally,withofficesin13countrieson3continents,IBAoffersaveryrichculturaldiversity–representativesof 40differentnationsworkatIBAinthefightagainstcancer.

InternalemployeemobilityisstronglyencouragedandformalizedbyaHRprocessdesignedtomakemovementeasy,bothinternationallyandbetweendifferentactivitiesof theGroup.In2009,onethirdof employeepromotionsinvolvedatransferbetweenBusinessUnits.ThispolicyhelpstoenrichandstrengthenacommonGroupcultureandofferemployeesnewopportunitiesfordevelopment.


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Inspiteof theeconomiccrisis,IBAallocateda2009R&Dbudgetatthesamelevelasthatof 2008:EUR29million(8%of annualrevenue),inordertomaintaintechnicalleadershipinallitsmarkets.In2009,approximately11%of theGroupworkforcewasemployedinR&Dfunctions.

Thedevelopmentqualityandcapacityof thecompanyiswellestablished.MajorBelgianandEuropeanplayersinresearchfundingsupportIBA,asillustratedbytheEUR50millionloanprovidedbytheEuropeanInvestmentBank(EIB)forthecompany’sresearchefforts.Otherexamplesof thissupportincludethethreenewresearchprojectsintheEU7thFrameworkProgramandthethreejointR&DprojectsendorsedbyBelgium’sWalloonRegionaspartof theMarshallPlanattheendof 2009.

AlltheseprojectsfallunderIBA’sstrategytodiversifyR&Deffortsandresourcesbymeansof cooperationwithothercentersof expertisethroughouttheworld.

InordertoprotectitsR&Dinvestment,IBAdedicatesEUR800000annuallytothemanagementof itsintellectualproperty.

Theportfolioof IBApatentsfiledsince1986nowstandsat331.Theycover97differentinventions,atvariousstagesof theprocess:historicalsearch,application,examination,publicationandissuanceof patent.Currently,43inventionsareprotectedby79patents,and41inventionsinvolving53patentsareinthepublicdomain.Thebalanceof 199patentsfor13inventionsispendingapproval.

In2009,onepreviouspatentapplicationwasgrantedand12newapplicationswereintroduced,of whichsevenrelatetonewideas.

Research at IBA in 2009

74 % Equipments

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Distribution of R&D spending between IBA's two main business areas in 2009.


Pharmaceutical R&D activitiesRadiopharmaceuticalsIntheareaof radiopharmaceuticals,therewereseveralmajordevelopments:➤Scintimun®(99mTc–radiolabelingkitforthe

diagnosisof osteomyelitis)wasgrantedEuropeanMarketingApproval.

➤AmajoragreementwassignedwithAposense(formerlyNSTLtd.)givingIBAworldwideexclusivityfortheirfluorinatedproduct[18F]-ML-10,anovelagentforthemolecularimagingof apoptosis.

➤WithWilexAG,theclinicalphaseIIItrialforRedectane®(diagnosticimagingagentforthediagnosisof clearcellkidneycancerspriortosurgery)wassuccessfullycompletedbySeptember.TheNDA(NewDrugApplicationtoobtainmarketingauthorizationintheUSA)isexpectedtobefiledwiththeFDAbymid-2010.

➤Thedevelopmentof two18F-fluorinatedPETtracers,Dopacis®(18-Fluorodopaforthediagnosisof Parkinson’sdiseaseandneuroendocrinetumors)and18F-Na(forthediagnosisof bonemetastasis)werecompletedandtheirmarketingapprovalisexpectedinFranceinearly2010.

➤APhaseIIIclinicalstudywith18F-Choline(forthestagingof thediseaseinprimaryprostatecancerpatientswithahighlikelihoodof cancerextension)waslaunched.

➤Anew99mTc-generatormanufacturinglineisnowunderconstructioninconjunctionwiththedevelopmentof anewversionof this99mTc-generator.

➤IBAisalsoparticipating,asamanufacturer,inanewprojectforthedevelopmentof radio-labeledmoleculesforprostatecancertherapy.Thisprojectwasgrantedabudgetof EUR8millionfromtheFrenchpublicinnovationfundinggroupOSEO/ISI.Partof thismoneywillfinancethedevelopmentprogramof Astatine211manufacturingwiththe70MeVArronaxcyclotroninNantes,France.

BioassaysThenewtechnologyTag-Lite®facilitatingthestudyof thebehaviorof receptorsatthesurfaceof livingcells,andinparticularG-ProteinCoupledReceptors(GPCR),wasintroducedinApril2009.Thistargetrepresentsmorethan30%of thetargetsscreenedbythepharmaceuticalindustryinthedevelopmentof newdrugs.TheIBAR&Dteamsuccessfullydevelopedafullrangeof newproductswiththistargetandisdevelopingseveralothersformarketintroductionin2010,inordertocompletetheofferinthisGPRCdomain.

Thisinnovativeproductlinereceivedrecognitionfromtheworldeconomiccommunityintheformof theFrostandSullivanInnovationPrize.

Equipments R&D activitiesProton therapy2009wasparticularlyfruitfulforIBAR&Dactivitiesintheareaof protontherapywiththecertification(FDAandCEMarking)andmarketintroductionof newPROTEUS235functionalitiesandequipment,includingthefollowing:➤Anewtreatmentmodality,UniformScanning,

whichfacilitatestheuniformdistributionof protondosesfortumorswithasurfaceareaof upto30x40cmandadepthof 32cmandwithsuperiorefficacytocurrentscatteringtechniques.Thismodalitywasdeployedatthebeginningof 2009andhasbeenusedsinceinseveralprotontherapyoperationalcentersincludingtheUniversityof FloridaProtonTherapyInstitute,ProCureProtonTherapyCenterinOklahomaCityandtheUniversityof Pennsylvania.

➤Anewtotally-robotizedpatientpositioningsystemwhichallowsmovementwithinsixdegreesof freedomandprovidesgreatalignmentprecisionof thetumorwiththeprotonbeam.

➤Newradiographicdigitalimageacquisitionandmonitoringsoftwarewhichverifiesthepositionof thepatient,calculatesanycorrectionvectors

2009 R&D: key moments


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andautomaticallytransmitsthemtothepatientpositioningsystem.

➤TheGantryRollingFloor,anewsystemof rollingfloorbasedonthecaterpillartrackprinciple,whichformsahorizontalsurfaceinthegantryenablingtherapiststoaccesspatientssafelyandeasily.

➤Anewsystemof patientandhospitalstaff safetymanagementbasedonSiemens’SIMATICS7programmablesafetyrobots.

➤Theintegrationof IBAprotontherapyequipmentcontrolsystems(TCSorTreatmentControlSystem)withdifferentOncologyInformationSystems(OIS)andTreatmentPlanningSystems(TPS)forscattering-typeanduniformscanningtreatmentmodalities.Compatibilitywithseveraltypesof OISandTPSsystemsisassuredbyastandardDICOMinterface.

➤Theintegrationof acollimator,consistingof movableblades,inthenozzlewhichcanbepositionedinfunctionof theshapeof thetumortobetreated(MultiLeaf Collimator).

OthernotableachievementsincludeFDAapprovalfortheuseof anewtreatmentroomconceptbasedontwofixedlines–onehorizontal,theotherat60°fromit–betweenwhichthenozzlemoves.Thefirstroomof thistypebecameoperationalinOklahomaCityinMarch2010.

In2009,IBAalsoinitiatedtwoprojectsaimedatevenmorepreciseverificationof thepointwheretheprotonbeamcomestorest(theBraggpeak).

Cyclotrons and electron beam accelerators In2009aninternationalcommitteeof expertsvalidatedtheconceptualworkontheC400,the400MeV/nucleonsupraconductoraccelerator,whichwillbeusedinthedevelopmentof Hadrontherapy.

Stillintheareaof cancertherapy,IBAalsostarteddevelopmentof newproductsbasedontheprincipleof intensefieldsdeliveredbysupraconductormagnetswiththeobjectiveof reducingthesizeandenergyconsumptionof gantrymagnetinstallations.

Movingtoradioisotope-producingcyclotrons,theyear2009concentratedonthestart-upof theC70deliveredtoNantes.Latedeliverycompromisedthe2009R&Dbudgetinareasof thecalculationanddesignof theC30XP–a30MeVmulti-particlemachinedependentonC70development.2009hasseenthesuccessfulcompletionof theC30HC(HighCurrent)whichacceleratesmorethan1.5mAof protonsupto30MeV.

AsfarasRhodotronsareconcerned,theTT1000prototypesoldtoLeoniStuderinSwitzerlandtoreplaceexistingCobalt60sterilizationunitswasinstalledandiscurrentlyinthestart-upphase.Initialdosimetricmeasurementsareveryencouragingandconfirmthehighpotentialof theX-raysystem.

Theendof 2009alsosawthelaunchof twonewCyclotronPETprojects:theC11,animprovedandoptimizedversionof theC10,andtheupgradeof theC3,asmallcyclotronproducedinthe1990’s.

Intermsof softwarewhichcontrolsthisequipment,TechnologyGroupR&Dsuccessfullyintroducedthe‘objectoriented’developmentprinciplewhich,thankstocomponentsdevelopedinsidethecompany,assiststhedevelopmentandmaintenanceof softwareanduserinterfacesof certaintypesof acceleratorscomingoff theproductionline.Allcustomerinstallationscanalreadybetested,diagnosed,upgradedanddeployedremotelyfromLouvain-la-Neuve,Belgium.

DosimetryDosimetryhassucceededinmaintainingmarketleadershipthroughitscontinuousfocusoninnovation,treatmentsafetyandefficiency.In2009,severalnewproductswereintroducedinvariousfieldsof activities.

InRadiationTherapy,thehighlightsof 2009werethedevelopmentof anewWaterPhantomgenerationbasedonaunique“magneto-strictive”technologyandaseriesof productenhancements,


notablyintheCompassproductlineforIMRTandrotationaltherapytreatments.Inaddition,dosimetrysolutionsforparticletherapythatsignificantlyreducethetimeneededforqualityassurancewerereleasedandwellacceptedbytheprotoncommunity.

NewapplicationswerealsoinvestigatedfortheVisicoil,anacceptedIBAstandardforfiducialmarkersinprostatetreatment,andaspecificmarkerforprotontherapywasreleased.

InbothDiagnosticsandRadiationTherapysegments,IBADosimetryR&DcontinuestopartneranddevelopsolutionsfortheBU’sOEMpartnerswiththeaimof increasingefficiencyandaccuracyof theirprocesses.

TheDiagnosticsDivisionbroughttomarketanewversionof MagicMaxdedicatedtodoseandexposurecontrolin,amongstothers,mammographyscreening.

Thefirstproductinthefieldof HealthPhysicswasdevelopedandintroducedtothemarket:apassive-basedradiationprotectionsystemthatmonitorsthedosagelevelsof radiationworkersatperiodicintervals.


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fDG production sites (57)Albany USAHaverhill USACleveland USAGilroy USAMorgantown USAOrlando USARichmond USARomeoville USASomerset USASterling USAKansasCity USALosAngeles USADallas USATotowa USAMontreal Canada BadOeynhausen GermanyBruxelles Belgium Gand Belgium Fleurus Belgium Lyon FranceParis FranceSarcelles FranceOrsay FranceRennes FranceNîmes FranceNancy FranceBordeaux FranceMadrid SpainBarcelona SpainSeville SpainMalaga SpainSantander SpainMilan ItalyRome ItalyUdine ItalyAmsterdam NetherlandsCoimbra PortugalDinnington Royaume-UniGuildford Royaume-UniDelhi IndiaKualaLumpur MalaysiaCasablanca Maroco

Monrol sitesIstanbul-1 Turkey Istanbul-2 Turkey Ankara Turkey Adana Turkey Izmir TurkeyHaeDong sitesSeoul - 1 South KoreaSeoul - 2 South Korea Pyeongchon South Korea Daejun South Korea Pusan South Korea Suncheon South Korea Daegu South Korea BioTech sitesAlbuquerque USA Las Vegas USA Lubbock USA

Geographical presence


HeadquartersIBAGroup Louvain-la-Neuve Belgium

other offices (7)IBAParticleTherapy Louvain-la-Neuve BelgiumIBAIndustrial Louvain-la-Neuve BelgiumIBAMolecular Dulles USAIBAChina Beijing ChinaIBADosimetry Schwarzenbruck GermanyIBAMolecular Saclay FranceCISBIOBioassays Marcoule France

Main Sales or other offices (4)IBAParticleTherapyJacksonville USAIBAIndustrial Edgewood USAIBADosimetry Bartlett USAIBADosimetry Uppsala Sweden


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Management reportApproved by the Board of Directors at its April 1st, 2010 meeting


Highlights of the year

overview of IBA business segments

TheglobaleconomiccrisiswidelyaffectedIBA'sgrowthin2009,andalthoughsalesshowedanincreaseof 8.0%andreachedEUR359.2million,onalike-for-likebasisandataconstantrate,revenueswouldhavedecreasedby6.8%comparedto2008,thegrowthrecordedinthePharmaceuticalsectorinEuropebeingmorethanoffsetby:➤ThedeclineinrevenuesintheUSAduetothe

overalleconomicclimate.➤ThedeclineinrevenuesfromtheEquipments

segmentduetotheabsenceof protontherapyordersin2008aswellaslowordersinotheracceleratorsinthefirsthalf of 2009.

TheCompanypublishedalossof EUR12millionfortheyears;besidesthelowrevenues,thisresultcomesfrom"oneoff"expensesontwoprojectswithhighR&Dcontent.Theseexpensescomefromtherevaluationof likelydelaysinfinalizingtheseveryhighvaluetechnologicalprojects.Under

theseconditions,theCompanywillnotbeabletodistributedividendsin2010fortheyear2009.However,thisdoesnotaffectitspolicyinthematterandrecommencedividenddistributionassoonaspossible.Despitetheseresults,thesecondhalf of 2009andthefirstmonthsof 2010allowustolookforwardtothefuturewithconfidence:➤Duringthesecondhalf of 2009,theCompany

sawanupswingintheamountof equipmentorderswhichhadfallensharplyinlate2008andearly2009.Today,thebackloghasrisentomorethanEUR200million.

➤Operatingcashflowgreatlyimprovedinthesecondhalf of theyear,theactivitybeingmainlyassociatedwiththeprotontherapyprojects.

➤TheCompanyhaslinesof creditof EUR100million(amongothersthroughalong-termloanfromtheEuropeanInvestmentBank),lessthanathirdof whichwasusedattheendof 2009.

for financial reporting purposes, IBA is divided into two business segments:ThePharmaceuticalssegmentencompassesradiopharmaceuticalagents(productionanddistribution)andbioassayoperations.Radiopharmaceuticals:➤PET1:primarilyfluorodeoxyglucose(FDG),

achemicalcompoundusedinmolecularimagingforthediagnosisof manydiseases(mainlycancer).

➤SPECT2:usedinnuclearmedicinefortherapyandimaging.

Bioassays: ➤Alineof biomarkersusedforinvitromedical

diagnoses(e.g.radioimmunoassays).➤TheGroup’snewHTRF®3technologyalsogivesit

apresenceintheinvitroscreeningof newdrugsforthepharmaceuticalindustryandbiotechcompanies.

➤Morethanhalf of theseproductsareusedinthediagnosisandtreatmentof cancer.

TheEquipmentssegment,whichencompassesthefollowing:➤ Proton Therapywhichoffersturnkeysolutions

formoreprecisetreatmentof cancerwithfewersideeffectsthroughtheuseof protonbeams.

➤ Particle Acceleratorswhichofferalineof cyclotronsusedfortheproductionof PETradioisotopes(PositronEmissionTomography)orSPECT(SinglePhotonEmissionComputedTomography);andalineof industrialacceleratorsforsterilizationandionization(E-beamandRhodotron®andDynamitron®X-raytypes).

➤ Dosimetrywhichoffersmeasurementinstrumentsandqualityassuranceforradiotherapyandmedicalimagingenablinghealthcarestaff tocheckthattheequipmentusedadministerstheplanneddosesintheintendedspot.

(1) PET = Positron Emission Tomography(2) SPECT = Single Photon Emission Computed Tomography(3) HTRF = Homogeneous Time-Resolved Fluorescence


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BUSInESS SEGMEnTS2008

(EUR ‘000)2009

(EUR ‘000)Change

(%)

Pharmaceuticals 149971 203587 35.8%

Equipments 182636 155574 -14.8%

ConSolIDATED SAlES 332 607 359 161 8.1%

Total sales and services for 2008: EUR 332 607 million

26 %

Proto

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y11% Dosimetry

18% Accelerator

Pharmaceuticals45 %

Total sales and services for 2009: EUR 359 161 million

20 %

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11% Dosimetry

12% Accelerator

Pharmaceuticals57 %

IBA’stwobusinesssegments–PharmaceuticalsandEquipments–aremadeupof fourbusinessareaswhosesalesandhighlightsaredetailedinthismanagementreportfortheyear2009:


Pharmaceuticals

ThefollowingtablepresentsthesummaryoperatingresultsforPharmaceuticals:

Revenuegrowthwaslargelyimpactedbytheacquisitionof CISBIOInternational.Fortherecord,theyear2008onlyincludedsevenmonthsof thisactivitycomparedwith12monthsin2009.Onalike-for-likebasisandatconstantrate,segmentgrowthwouldhavebeen1%.Growthonalike-for-likebasisof morethan10%inEuropecompensatedforthedeclineof 12%intheUnitedStates.

ThelowvolumeintheUSAaswellasagreaterallocationof centralcostsweighedontheprofitabilityof thesegmentoverallbutthesecondhalf of theyearallowedthecompanytoseeanetrecoveryincomparisonwiththefirstsemester.Also,theoperatingprofitreached2.6%of salesandservicesforthesecondhalf of 2009comparedwithalossinthefirstsemester.

Strategically,followingtwoagreementssignedduringthefirstsixmonthsof 2009,IBAcustomerscannowbenefitfromanetworkof morethan50PETradiopharmaceuticalproductionanddistributionsitesonthreecontinents.➤InFebruary2009,acollaborationagreement

wasexecutedwiththecompanyEczacıbaşi-MonrolNuclearProductsA.S.todevelopthePETradiopharmaceuticalmarket(PositronEmissionTomography)andSPECT(SingleEmissionPhotonComputedTomography)intheBalkans,intheMiddle-East,inNorthAfricaaswellasCentralandEasternEurope;

➤InMay,2009,apartnershipwithBVCyclotronV.U.,basedinAmsterdamwassignedforthe

productionanddistributionof F-18markedradiopharmaceuticals(Fluor-18)usedinPositronEmissionTomography.

OnAugust3,2009,CardinalHealthannounceditsacquisitionof theassetsof Biotech,aPETcyclotronandnuclearpharmaciesoperatorwhohadjoinedIBA'snetworkin2008.Followingthistransaction,theIBAnetworkwentfrom53productionsitesto50.

Inthefieldof thedevelopmentof newmarkedmolecules,theyear2009turnedouttobefruitful:➤OnSeptember26,2009,IBAandAposense

Ltd.announcedthesigningof anexclusivecollaborationagreementforthemarketingof Aposense®[18F]-ML-10,thenewAposenseagentformolecularimagingof apoptosis(programmedcelldeath).Thecomprehensivelong-termagreementisfocusedonajointcollaborationandfinancingbyIBAandAposenseof theclinicaldevelopmentof phaseIII,aswellasonthelatestclinicaldevelopmentsof [18F]-ML-10.

➤OnOctober6,IBAandWilexannouncedthattheyhadendedphaseIIItestsonpatients,fortheproprietaryproductRedectane®intendedforimagingcancerouskidneytumors.Theresultsarecurrentlybeinganalyzed.Intheeventof success,thefirstsaleswouldbegeneratedin2011.

➤OnOctober29,2009,IBAannouncedthatithadobtainedapositiveopinionfromCMPHU(CommitteeforMedicinalProductforHuman

2008(EUR ‘000)

2009(EUR ‘000)

Change(EUR ‘000)

Change(%)

Salesandservices 149971 203587 53616 35.8%-Radio-pharmaceuticals 126851 165898 39047 30.8%-Bioassays 23120 37689 14569 63.0%REBITDA 14724 16141 1417 9.6% % of sales 9.8% 7.9% REBIT 2918 1135 -1783 -61.1% % of sales 1.9% 0.6%

2008 REBITDA corrected for non recurring elements compared to the 2008 publication.REBITDA: Recurring earnings before interest, taxes, depreciation and amortization.REBIT: Recurring earnings before interest and taxes.


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Equipments

Thefollowingtableprovidesabreakdownof Equipmentssalesfiguresbybusinessarea,aswellasthesegment’soverallcontributiontoincome:

Afterthefirsthalf of 2009,duringwhichtherewassignificantimprovementintheprofitabilityof theEquipmentssectorthroughtherenegotiationof thetermsof certainsalescontracts,aswellasthedropinproductioncostsfromtheimprovementof productionprocessesandprogressonthelearningcurveof theprojects(especiallyinprotontherapy),thesecondsemesterwascharacterizedbynon-recurringcostsresultingfromthereassessmentof theprobabledelaysinfinalizingtwoprojectsof veryhightechnologicalvalue.TheseelementsledtotheGroupshowingoperatingresultsnearly22%belowthepreviousyear.

Thisdecreasein2009netincomedoesnotchallengetheoverallpositiveperspectivesof theCompanyingeneralandtheEquipmentssegment,inparticular.Infact,thesecondhalf of 2009wasparticularlyrichinorders.

Proton TherapyIn2009,despitethecrisis,IBAwasabletohonoritsguidanceintermsof takingprotontherapyorders,thatistosay,twotothreesystemsperyear,andcontinuedtoproveitspositionof marketleaderfactually:

➤InMay,2009,IBAsignedaninstallationcontract,theafter-salesserviceandlong-termmaintenanceof alargeprotontherapycenterinPragueintheCzechRepublic.Thefirstpatientsshouldbetreatedin2012.

➤OnJuly17,2009,IBAannouncedthatithadbeenselectedbyATreP(AgenziaProvincialePerlaProtonterapia)inItalyfortheinstallationof aprotontherapycenterfortheprovinceof Trento.ItwillbethefirstprotontherapycenterequippedwithanisocentricrotatinggantryinstalledinItalyandhasbeenestablishedinthescopeof aPPP(Public-PrivatePartnership).TheATrePprotontherapycenterwillbebuiltonlandchosenforaccommodatingthefuturehospitalinTrentoandshouldbegintreatingpatientsbyearly2013.Financingof thiscontractwasfinalizedinDecember,2009.

➤OnNovember2,2009,IBAlaunchedthecommercializationof the"ProteusNano",asmallersizeandlesscostlyalternativetotraditionalprotontherapycentersforcancertreatment.Theuniquedesignof theProteusNanocomesfromitssmallersize.Throughitsuseof IBA'sinnovativeVbeamtechnology,ProteusNanooptimizesspace,thusreducingthesiteareaaswellascost.Thisnewtwo

2008(EUR ‘000)

2009(EUR ‘000)

Change(EUR ‘000)

Change(%)

Salesandservices 182636 155574 -27062 -14.8%-ProtonTherapy 86191 70689 -15502 -18.0%-Dosimetry 37557 39815 2258 6.0%-Accelerators&others 58888 45070 -13818 -23.5%REBITDA 11419 9292 -2127 -18.6% % of sales 6.3% 6.0% REBIT 7833 6171 -1662 -21.2% % of sales 4.3% 4.0%

Use)recommendingamarketingauthorizationforScintimun®(besilesomab).Thisproductisdestinedforradioisotopeimagingenablingthedetectionof inflammation/infections.

Asareminder,theBioassaysdivisionreceivedthe2009Frost&Sullivanprizeforthetechnologicalinnovationof theyear.


treatmentroomisnowmakingprotontherapymoreaccessiblethanever.

➤Simultaneously,theCompanyannounceditsMaxiPROrentingsolutionforprotontherapycenters,whichwillenableanevenlargernumberof hospitalsandcancertreatmentcenterstomakeprotontherapyavailabletotheircancerpatients.This“onestopshop”offerisliterallyequivalenttotheprincipleof “NoPayuntilOpeningDay”.MaxiPROisanall-inclusiverentingoffermakinganentirelyoperationalProteusprotontherapysystemavailabletoqualifiedcustomers,inreturnforapredefinedmonthlyfee.ThisfeecoverstheProteussystem,itsinstallation,itssecondarysystemsandthebuildingaswellastheuseandmaintenanceof theequipment,orapartof theseservices,duringanagreeduponperiodof time.

➤InDecember2009,IBAsucceededattrialinthescopeof itscancellationrequestof theSkandioncontractinSwedenfortheinstallationof aturnkeyprotontherapycenterthere.InadecisiondatedAugust11,2009,thepublicauthorityhaddecidedtograntthecontracttoVarianMedicalSystemsInc.IBAjudgedthattheprocedurewasflawed,thatthesubmittedofferswereevaluatedinanincorrectwayandthattheprocedurehadbeenconductedinviolationof theprinciplesof transparencyandequalityof treatment.Therefore,anappealwasintroducedbeforetheadministrativecourtof Uppsala.InadecisiondatedDecember3,2009,thecourtjudgedtheappealtobejustifiedandproclaimedthecancellationof theawardingof thecontract.

Simultaneously,theinstallationof thesystemspreviouslyorderedactivelycontinued:➤Theprotontherapysysteminstalledatthe

ProCureProtonTherapyCenterof OklahomaCity,USAopeneditsdoorsatthebeginningof July,27monthsafterlayingthefoundations–aworldfirst–whereasitgenerallytakesthreeyearstobuildafullcenter.

➤Currently,IBAisbuildingandinstallingnineprotontherapycenterssimultaneously,fiveof whichareintheUnitedStatesandfour

inEurope.Moreover,sevenIBA-builtprotontherapycentersarealreadytreatingpatientsintheUnitedStatesandAsiadaily.

AcceleratorsAfteraverydifficultfirsthalf of 2009,duringwhichIBAhadonlygarneredafewordersforindustrialcyclotronsandaccelerators,duetothedifficultiescustomersfacedinobtainingbankfinancing,thesecondhalf of theyearendedwiththeloggingof 14accelerators,placingitamongthebestsemestersof IBAforthisbusiness.DuringthelastNuclearMedicineConference(SNM,Societyof NuclearMedicine),whichwasheldinToronto,CanadainJune,IBApresenteditsnewCyclone®11.Itcombinestheadvantageof asmallersizedmachinewiththetechnologyof highenergycyclotrons.Basedonitsexpertise,IBAoffersthemostadvancedfunctionstotheR&Dandproductiondepartmentsof hospitals.

DosimetryDuringthesecondhalf of 2009,Dosimetrysalesstronglyincreased(up15%)comparedwiththesecondhalf of 2008.Thisincreaseappearstoreflecttheendof theslowdownobservedsincethefourthquarterof 2008duetothefreezingof equipmentexpensesdecidedbyhospitals,particularlyintheUnitedStates.

Duringtheyear,IBAsuccessfullylaunchedseveralnewproductsonthemarket,amongthemaversionof Compass®andMatriXXEvolutionadaptedtorotationalradiotherapymachinery.


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Consolidated annual financial statements

Income statementConsolidatedsalesandservicesfortheyear2009wereupEUR26.6millionor8.0%comparedwith2008.TheytotaledEUR359.2millionin2009,comparedtoEUR332.6millionin2008.Thisincreaseisexplainedentirelybyaprogressioninthe“pharmaceuticals”segmentfollowingtheintegrationof CISBioInternationalS.A.S.intotheconsolidationscope.

Theconsolidatedgrossmarginfor2009totaledEUR131.3millioncomparedwithEUR112.3millionforthepreviousperiod,anincreaseof 16.9%percent.Asapercentageof consolidatedsalesandservices,grossmarginreached36.6%versus33.8%ayearearlier.Thisimprovementwasvisibleinbothsegments.

Overallrecurringexpensesincreased22.1%withastrongincreaseinthecostof salesandmarketing,andgeneralandadministrativecostswhichgrewrespectivelyby16.3%and35.0%in2009,comparedtothesameperiodin2008.Theseincreasesreflectthechangeinscoperesultingfromtheintegrationof CISBioInternationalS.A.S.Researchanddevelopmentcostsremainedundercontrolwithanincreaseof 7.3%despitethesignificantadvancesinacertainnumberof FDAapprovals,notablyinProtonTherapyandinDosimetry,therecordingof theexpensesresultingfromtherevaluationof thelikelydelaysinfinalizingprojectswithveryhightechnologicalvalue,andthepursuitof newproductdevelopmentinthePharmaceuticalsector.

TheGroupshowednetrecurringearningsof EUR7.3millionin2009versusEUR10.8millionayearearlier,oradecreaseof 32.0%comparedwith2008,followingtheimpactof theone-off expensespreviouslymentionedforEUR2.8million.Excludingthese,recurringnetincomewouldhavebeeninlinewiththepreviousyear,despiteverydifficulteconomicconditions.

Theotheroperatingexpensesfortheyear2009rosetoEUR10.5millionandmainlyreflectedmorethanEUR9millionof expensesresultingfromtherevaluationof likelydelaysinfinalizingtheaforementionedprojects.Thepositiveearningsfor2008,whichstoodatEUR6.4million,primarilyreflectedtheimpactof theacquisitionof CISBioInternationalS.A.S.andinparticular,acontributionof EUR14millionbytheFrenchCEA(Commissariatàl’EnergieAtomique,AtomicEnergyCommission)tohelpCISBioInternationalS.A.S.meetitsobligationsinconnectionwiththedecommissioningof certainfacilitiesinSaclayafter2017.Italsoincludesdepreciationof varioustangibleandintangibleassets.

IBApostedafinanciallossof EUR5.1millionin2009duetothecombinedeffectof treasuryinvestmentsdiscountingchargesonlong-termprovisions,interestexpensesonfinancialliabilitiesandtherevaluationof financialinstrumentstofairvalue.

Fortheyear2009,taxesrepresentedanexpenseof EUR4.8millionresultingmainlyfromfluctuationsof deferredtaxassetswithoutanynegativeimpactsontheGroup'scashflow.

Theshareof profitof companiesconsolidatedusingtheequitymethodtotaledEUR0.8millionfortheyear2009,comingessentiallyfrompartnershipsinthemolecularimagingbusiness.Fortheyear2008,theCompanyhadrecordedanexpenseof EUR2.4millionprimarilymadeupof theresultsof CISBioInternationalS.A.S.forthefirst5monthsof 2008,whichwereparticularlyaffectedduringthatperiodbyaprovisionforrestructuring.

ThenetlossstoodatEUR12.3millionin2009comparedwithaprofitof EUR5.3millionfor2008.


Consolidated balance sheet and financial structure Themostsignificantbalancesheetfluctuationsfortheyear2009werebroughtaboutessentiallybythenineprotontherapyorderswhicharecurrentlyinprogressaswellastheinvestmentanddevelopmentprogramsof pharmaceuticalactivities.

Non-currentassetsincreasedtoEUR13.8millionduring2009.TheywentfromEUR251.6millionasof December31,2008toEUR265.4millionattheendof 2009.Thechangeisexplainedmainlybythefollowingactivity:➤Together,tangible(EUR37.0million)and

intangible(EUR79.5million)fixedassetsremainedclosetotheir2008level,investmentsmadefortherenovationof theSaclay(Paris)siteinFrance,fortheconstructionandimprovementof productionsitesforradiopharmaceuticalproductsforPETandforthedevelopmentandindustrializationof newmoleculeshavingbeencompensatedbydepreciationandwrite-offs.

➤Otherlong-termliabilitiesincreasedfromEUR15.0milliontoreachEUR80.1millionmainlyaftertheincreaseof downpaymentscollectedonprotontherapycontractsforwhichthecorrespondingreceivablesdonotqualifyforderecognitionaccordingtoIAS39.InadditiontotheEUR39.6milliondownpayments,thiscaptionalsoincludesEUR32.2millionof assetsreservedforthedecommissioningandfuturerenovationof theGroup’sinstallations.

Non-currentliabilitieswerepracticallystablefromoneyeartothenext,goingfromEUR157.4millionasof December31,2008toEUR158.0millionattheendof 2009.Themovementof EUR0.6millionisexplainedbythefollowingfluctuations:➤Long-termdebtsdecreasedbyEUR5.5million,

mainlyfollowingtransferstoshort-term.➤ProvisionsdecreasedbyEUR2.4million,

mainlyduetotheirutilizationinthescopeof therestructuringof CISBIOInternationalS.A.S.formorethanEUR4million.

➤Otherlong-termliabilitiesincreasedbyEUR7.9million,primarilyduetotherecordingof

downpaymentsonprotontherapycontractsforwhichtherelatedreceivablesdonotqualifyforderecognitionunderIAS39.

TheGroup’snetcashpositionwentfromEUR17.8millionattheendof 2008toEUR-17.1millionasof December31,2009.CurrentcashflowispositiveandamountstoEUR17.6million,gross.Thedecreaseinnetcashof EUR34.9millioncomparedwiththepositivenetfinancialpositionof EUR17.8millionattheendof 2008isexplainedbyinvestmentsassociatedmainlywiththePharmaceuticalbusinessforatotalof EUR31.7million.Theseessentiallyrelatetotherenovationof theproductionsiteinSaclay(France)whoseworksarenearingtheirendaswellasthepreparationforthelaunchingof newproprietarymolecules.

Research and development In2009,researchanddevelopmentexpensesfortheGrouprosetoEUR29.0million,comparedtoEUR27.0millionin2008.TheseconsiderableinvestmentshaveenabledtheCompanytoremainoneof thegloballeadersinallthemarketsinwhichitisactive.

Acquisitions and divestments in 2009In2009,IBAdidnotconductanysignificantmergersandacquisitions,unliketheyearbeforeduringwhichIBAexerciseditscallpertainingto80.1%of RadioPharmaPartnersS.A.(holdingan80.1%investmentinCISBioInternationalS.A.S.)aswellas19.9%of ScetiMedicalLaboKK.

Capital increase and granting of subscription rights Overthecourseof theyear,theBoardof Directorsexercisedtwocapitalincreaseswithawaiverof thepreemptiverightsof theexistingshareholdersinthecontextof theauthorizedcapital.

InApril2009,IBAofferedasubscriptionof 200000sharestopersonnelof theGroup.OnMay29,2009,itwasnotedthatoutof the200000newsharesofferedinsubscription,121838sharesweresubscribedtoattheprice


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of EUR4.09pershare.Thesharesofferedinsubscriptionwereordinaryregisteredsharesrepresentativeof thecapitalof IBA,deliveredwithVVPRstripsandcreatedwithparticipationtakingeffectin2009.Theywereofferedatasubscriptionpriceequaltotheaveragemarketpriceof the30daysprecedingtheoffer,withadiscountof 16.67%Thesharesareunavailableforaperiodof threeyearstakingeffectattheendof thesubscriptionperiod.

InSeptember2009,theBoardof Directorsissued1000000stockoptionstotheemployeesandcollaboratorsof theGroup,aspartof the

2009stockoptionplan,with620000freeand380000saleableoptions.OnDecember16,2009itwasnotedthat346658freeoptionsand89,193saleableoptionsweresubscribedto.Consequently,thecancellationof 273422freeoptionswasrecorded.Theexercisepriceof aoptionisEUR8.26.

InSeptember,2009,theBoardof Directorsapprovedthelaunchof atreasurysharerepurchaseprogrambyIBA,inordertoneutralizethedilutiveeffectof thestockoptionplans.During2009,IBAS.A.acquired75637sharesforatotalpriceof EUR689346.

IonBeamApplicationsS.A.postedsalesandservices,down25%atEUR136.6millionin2009,comparedwithEUR183.4millionin2008.Thedeclineinrevenueisparticularlyduetotheabsenceof protontherapyordersin2008aswellaslowordersforotheracceleratorsinthefirsthalf of 2009.

Theoperatingincomewhichpostedalossof EUR1.7millionattheendof 2008,postedalossof EUR6.8millionattheendof 2009.

TheCompanyshowedanetlossof EUR10.9millionversusanetgainof EUR6.8millionin2008.

Thelosswillbecarriedforwardbutisnotof arecurringnature.

Attheendof 2009,IBAS.A.ownedabranchinFrance,createdinParis(Orsay)inthescopeof oneof itsequipmentprojects.

DuringtheAnnualShareholder'sMeetingonMay12,2010,theBoardof Directorswillnotofferadividendfor2009.

IBA S.A.’s statutory accounts and appropriation of net profit/(loss)


Corporate structure and governance

Formoredetailsonthistopic,werefertothe"CorporateGovernance,Management,andControl"sectionof thisannualreport.

TheBoardmeetingonMarch3,2009decidingontheCompensationCommitteereportledtotheapplicationof theconflictof interestof directors,procedure,asstipulatedbyArticle523of BelgianCodeof CompanyLaw.Thisconflictof interestinvolvedthemanagingdirectorsintheirroleastheheadsof managementservicescompaniesprovidingservicestoIBA.Afterdeliberation,theBoardunanimouslyapprovedtherecommendationsmadebytheCompensationCommitteeinitsreporttotheBoardandregardingboththestrategicgoalsassignedtothesemanagementcompaniesfor2009,andthedeterminationof variablerevenuealreadyearnedfor2009.TheBoard'sdecisionwasthencommunicatedtothemanagingdirectors.

TheBoardmeetingonThursday,April02,2009decidingontheapprovalof thestockpurchaseplanfortheemployeesandcolleaguesof IBAS.A.anditsBelgiansubsidiariesledtotheapplicationof theprocedurestipulatedintheBelgianCodeof CompanyLawforcasesof conflictof interestinvolvingdirectors.Thisconflictof interestinvolvedthemanagingdirectorsintheircapacityasbeneficiariesof saidplan.Afterdeliberation,theBoardunanimouslyapprovedthetermsof theIBAS.A.andBelgiansubsidiariesemployeeandassociatestockpurchaseplanandthetermsof thespecialreportdraftedinapplicationof Article596of theBelgianCodeof CompanyLaw.TheBoard'sdecisionwasthencommunicatedtothemanagingdirectors.

TheBoardmeetingonWednesday,May13,2009decidingonextendingthestockoptionplansonsharesfrom2004,2005,2006and2007ledtotheapplicationof theprocedurestipulatedinArticle523of theBelgianCodeof CompanyLawforcasesof conflictof interestinvolvingdirectors.Thisconflictof interestrelatedtotheGroupof

directorswiththeexceptionof thePresidentandthePresidentof theAuditCommitteeintheircapacityasbeneficiariesof saidextension.Afterdeliberation,theBoardunanimouslyapprovedtheextensionof thestockoptionplansfor2004,2005,2006andasproposedbyManagementandthetermsof thespecialBoardreportsdraftedinapplicationof Articles583,596and598of theBelgianCodeof CompanyLaw.

Finally,theBoardmeetingonAugust28,2009decidingonthelaunchof astockoptionplanalsoledtotheapplicationof theprocedurestipulatedinArticle523of theBelgianCodeof CompanyLawforcasesof conflictof interestinvolvingdirectors.Thisconflictof interestrelatedtothegroupof Boardmembersintheircapacityasbeneficiariesof saidplan,withtheexceptionof M.NicoleDestexhe(Instituteof RadioElements),Mr.PeterVermeeren(PSLManagementConsultingSCS)andMr.Jean-JacquesVerdickt(J.J.VerdicktS.P.R.L.)whodeclaredthattheydidnotwishtobeinthelistof beneficiaries.Afterdeliberation,theBoardunanimouslyapprovedthelaunchingof astockoptionplanwhichwaslimitedto1000000options,aswellasthetermsof thedraftspecialBoardreportdraftedinapplicationof Articles583,596,and598of theBelgianCodeof CompanyLaw.


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Besidestheriskstowhichallindustrialcompaniesareexposed,IBAissubjecttosignificantrisksspecifictoitsoperations.Theseriskfactorsaredescribedinthefollowinglist,whichdoesnotclaimtobeexhaustive.

AuthorizationsAnumberof IBAproductsandequipmentaresubjecttoregulatoryapproval,suchasmedicalequipmentorpharmaceuticalproducts.ThisapprovalmustbeobtainedineachcountrywhereIBAwishestoselltheseproductsorequipment.Forexampleattheendof 2009,foritsprotontherapyequipment,IBAhadregulatoryapprovalfortheUnitedStatesFDA(FoodandDrugAdministration),fortheEuropeanUnionEC(EuropeanCommission),forChinaSDA(StateDrugAdministration),andSouthKorea.Theseauthorizationscanalwaysbechallengedbytherelevantauthorities.Becauseof thetechnological

developmentsof IBA'sequipment,additionalauthorizationsmustbesolicited.Alsoin2009,IBAobtainedauthorizationfromtheFDAforanimprovementof accessintheGantry(Gantryrollingfloor),animprovementtotheGantryfortreatmentin“Inclinedbeamline”.Similarly,inEuropeIBAobtainedtheECmarkingof theroboticpositioningsystem,uniformscanning,thegantryrollingfloorandtheinterfacetotheOncologyInformationSystem(protontherapy).Similarly,theproductionanddistributionof radiopharmaceuticalsisthesubjectof animportantregulationwhichtheCompanymustcomplywithatalltimesinordertocontinuetomarketitsproducts.

Technological risksTheCompanycontinuestoinvestheavilyinresearchanddevelopmentandcannotoverlooktheprobabilitythatoneof itsprototypesornew

Shareholders

Principal risks and uncertainties faced by the Company

Competence and independence of the members of the Audit Committee

number of shares %BelgianAnchorage 7773132 29.09%IRE(InstitutdesRadioéléments) 1423271 5.33%Sopartec 529925 1.98%UCL 426885 1.60%IBAInvestmentsSCRL(*) 635530 2.38%IonBeamApplicationsS.A.(*) 75637 0.28%Public 15854775 59.34%ToTAl 26 719 155 100%

(*) As of December 31, 2009, IBA S.A. held a total of 75 647 of its own shares and a total of 635 530 shares through the company IBA Investments S.C.R.L., a wholly owned indirect subsidiary.

InaccordancewithArticle96(paragraph9)of theBelgianCodeof CompanyLaw,theBoardof Directorsof IBAannouncedthatMr.Jean-JacquesVerdickt,Presidentof theAuditCommitteeandmemberof theBoardof Directorssince2006,currentlyoccupiesthepositionof Presidentof thecompanyTechspaceAero.Hehasvastprofessionalexperienceinaccounting

andauditmattersandholdsseveralseatsinothercompanies,notablyasVice-Presidentof EuroclearGroup,Presidentof theauditcommitteeof EuroclearandDirectorof CBC,MagotteauxGroup,EuroclearBan,Logiver,BoneTherapeuticsandof theWalloonUnionof Companies.HehasnoinvestmentorothersignificantinterestintheCompany.


moleculesmaynotbecommerciallyviableormaybecomeobsoleteduringitsdevelopmentbecauseof competingtechnologicaldevelopments.

Reimbursement of health care Thesubsidizingof costsbyhealthcarereimbursinginstitutionsforPETscansorSPECTscansorforthetreatmentof certaindiseasesinvolvingdirectorindirectuseof IBAequipmentissubjecttoreview.Thereimbursementpoliciesof theseorganizationsinhealthcarematterswillhaveaninfluenceonthevolumeof ordersthatIBAwillbeabletoobtain.Thesesubsidiesfromreimbursementinstitutionsdifferfromcountrytocountry,andcanvarywidely.

Product liability insurance Useof theCompany’sproductsmayexposeittocertainliabilitylawsuits.TheCompanymaintainswhatitbelievestobesufficientinsurancetoprotectitintheeventof damagesarisinginaproductliabilitylawsuitorfromtheuseof itsproducts.InacountrysuchastheUnitedStates,wheretheslightestincidentmayresultinmajorlawsuits,thereisalwaysariskthatapatientwhoisdissatisfiedwithservicesdeliveredusingtheCompany’sproductsmayinitiatelegalactionagainstit.TheCompanycannotguaranteethatitsinsurancecoveragewillalwaysbesufficienttoprotectitfromsuchrisksorthatitwillalwaysbepossibletoobtaincoverageforsuchrisks.

foreign exchange risks TheCompanyisexposedtoforeignexchangeriskswhenitsignscertaincontractsinforeigncurrenciesorwhenitinvestsabroad.Tothefullestextentpossible,theCompanyemploysthefinancialinstrumentsnecessarytolimititsexposuretotheserisks.TheCompany’sfinancialriskmanagementobjectivesandpolicy,aswellasitspoliciesonpricerisk,liquidityrisk,andcashflowrisk,aredescribedingreaterdetailinthenotestoitsconsolidatedfinancialstatements.

Asset depreciation risksIBAinvestsincompanieswhosebusinesssectoriscomplementarytoitsown.Inmostcases,these

arerecentlyestablishedcompaniesininnovativesectors.IBAcannotguaranteethatallof theseinvestmentswillbeprofitableinthefutureorthatsomeprojectswillnotbeterminatedprematurely.Insomecases,IBAalsoinvestsitssurpluscashinveryliquidandhighlyrated(AAA)financialinstrumentsbutcannot,however,predictsuddenchangesintheseratings,ormarketmodificationsleadingtothedisappearanceof thisliquidity.

Risk of dismantlingCISBIOrecentlyobtainedINB(InstallationNucléairedeBaseorBasicNuclearFacility)designationinFrance.AsanINB-designatedfacility,itisrequiredtosetasideresourcesfortherestorationof theoperatingsitewhereitsactivitiesarelocatedattheexpirationof aperiodendingineither2022or2078,asapplicable.

Dependence with respect to certain members of the staff SincetheCompanywasestablished,thenumberof highlyqualifiedpersonsthatitemployshassignificantlyincreased.However,itispossiblethatthedefectionof certainkeyemployeespossessingspecificexpertisecould,atsomepoint,affectoneof theCompany’sbusinessareas.

Dependency on a specific customer or a limited number of orders Ingeneral,IBA’scustomersarediversifiedandarelocatedonseveralcontinents.Foritsequipment,particularlyitsprotontherapysystems,theCompanydependseachyearonanumberof ordersthatareexecutedoverseveralfinancialyears.Inthisfieldof business,progress,orlackof progressonanorder,orchangesinanorderthatwerenotanticipatedatthebeginningof theyear,canhaveasignificantimpactoverseveralaccountingperiods.Ontheotherhand,theleadtimeforfulfillingordersgivestheCompanygoodvisibilityonitslevelof activityseveralmonthsaheadof theorders.

Intellectual property (patents) TheCompanyholdsintellectualpropertyrights.Someof theserightsaregeneratedbyemployee


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General outlook for 2010

InapressreleasedatedFebruary19,2010,IBAconfirmedhavingreceivedasupplementalorderforasecondtreatmentroomonbehalf of itsItaliancustomerATreP(AgenziaProvincialePerlaProtonterapia).

OnFebruary23,2010,IBAannouncedthatithaschosenProCureTreatmentCenters,Inc.tosupply

aprotontherapysystemtotheProCureProtonTherapyCenterof Somerset,NewJerseyintheUnitedStates.Thecontractisfinancedandisimmediatelyinforce.ItrepresentsIBAequipmentvaluedbetweenEUR30and45million

orproductionprocessknow-howandarenotpatent-protected.TheCompanyholdspatents,butitcannotguaranteethatthesepatentsarebroadenoughtoprotecttheCompany’sintellectualpropertyrightsandtokeepitscompetitorsfromgainingaccesstosimilartechnologies.TheCompanycannotguaranteethatthedefectionof certainemployeeswouldnothaveanegativeimpactonitsintellectualpropertyrights.

Competition and risks of rapid product obsolescence Currently,IBAhasnodirectcompetitorcoveringallthemarketsinwhichitispresent.However,insomeof itsmarkets,itiscompetingagainstsomeof theworld’slargestcorporations.Thesecorporationshavehighlydevelopedsalesandmarketingnetworksand,moreimportantly,extensivefinancialresourcesbeyondcomparisonwiththoseof IBA.Furthermore,thereisalwaysthepossibilitythata

newtechnology(arevolutionarycancertreatmenttherapy,forexample)maybedevelopedthatwouldrenderaportionof IBA’scurrentproductlineobsolete.However,developingandmarketinganewtechnologytakesarelativelylongtime.

Penalties and warranties Somecontractsmaycontainwarrantiesorpenalties.Whilethewarrantyorpenaltyisgenerallyafewpercentof theamountof thecontractinthecaseof conventionalsalescontracts,itmaybesignificantlyhigherinthecontextof public-privatepartnershipsinasmuchasthepenaltiesmustcovertheassociatedfinancing.Suchclausesareapplicabletoalimitednumberof contractsandareessentiallyfoundinthescopeof protontherapycontracts.Thepossibilitythatacustomermayonedayexercisesuchawarrantyorpenaltyclausecannotbeexcluded.

Inviewof theuncertaintiesassociatedwiththeeconomicsituation,theCompanynolongermakesforecastsonfutureresults.Nevertheless,aspreviouslyindicated,thesecondhalf of 2009andthefirstmonthsof 2010allowustolookforwardtothefuturewithconfidence:➤Duringthesecondsemesterof 2009,the

Companysawanupswingintheamountof equipmentorderswhichhadslowedsharplyinlate2008andearly2009.Today,thebackloghasrisentomorethanEUR200million.

➤Operatingcashflowgreatlyimprovedinthesecondhalf of theyear,theactivitybeingmainlyassociatedwithprotontherapyprojects.

➤TheCompanyhaslinesof creditof EUR100millionamongothersthroughalongtermloanreceivedfromtheEuropeanInvestmentBank,lessthanathirdof whichwasusedattheendof 2009.

IBA’slong-termstrategyisbasedonthefollowing:


Statement of the directors

ThismanagementreportandtheaccompanyingfinancialstatementshavebeenestablishedbytheCEO,(Chief ExecutiveOfficer)PierreMottetandtheCFO,(Chief FinancialOfficer)Jean-MarcBothy.Totheirknowledge:theyhavebeenestablishedinaccordancewithapplicableaccountingstandards,giveatrueandfairimageof theassets,thefinancialpositionandtheresultsof theissuerand

of thecompaniesincludedintheconsolidation.Themanagementreportcontainsafaithfulaccountof theimportanteventsandthemaintransactionswithrelatedpartiesfortheyear2009andontheireffectonthesetof consolidatedfinancialstatements,aswellasadescriptionof themainrisksanduncertaintieswhichtheCompanyfaces.

➤TheWorldHealthOrganizationbelievesthatthenumberof newcancercaseswillcontinuetoclimbsteeplyoverthenext20years.

➤Theuseof radiotherapywillcontinuetobeoneof themaintreatmentmodes.

➤Molecularimagingwillincreasinglybeused,allowingmoreprecisediagnosesandtherapiesbetteradaptedtothepatients.

➤IBAiscontinuingtoconsideritspresenceinanumberof growthmarketsforthecomingyears.

➤IBAistheworldleaderinthesenichemarkets.


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Introduction

IonBeamApplicationsSA(the"Company"orthe“parent”),foundedin1986,anditssubsidiaries(together,the"Group"or“IBA”)arecommittedtotechnologicalprogressinthefieldof cancerdiagnosisandtherapyanddeliverefficient,dependablesolutionsprovidingunequaledprecision.IBAalsooffersinnovativesolutionsforeverydayhygieneandsafety.

TheCompanyisalimitedcompanyincorporatedanddomiciledinBelgium.Theaddressof itsregisteredofficeisCheminduCyclotron,3;B-1348Louvain-la-Neuve,Belgium.

TheCompanyislistedonthepan-EuropeanstockexchangeEuronextandisincludedintheBelMIDIndex.

Consequently,IBAhasagreedtofollowcertainrulestoenhancethequalityof financialinformationprovidedtothemarket.Theseinclude:

➤Publicationof itsannualreport,includingitsauditedannualconsolidatedfinancialstatements,withinfourmonthsfromtheendof thefinancialyear;

➤Publicationof ahalf-yearlyreportcoveringthefirstsixmonthsof thefinancialyearwithintwomonthsfromtheendof thesecondquarter;

➤Publicationof half-yearlyandannualconsolidatedfinancialstatementspreparedinaccordancewithIFRS;

➤Auditof itsannualconsolidatedfinancialstatementsbyitsauditorsinaccordancewiththeauditingstandardssetforthbytheInternationalFederationof Accountants(“IFAC”).

TheseconsolidatedfinancialstatementswereapprovedforreleasebytheBoardof DirectorsonApril1,2010.


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Statement of consolidated financial position at December 31, 2009TheGrouphaschosentopresentitsbalancesheetonacurrent/non-currentbasis.Thenotesonpages37to97areanintegralpartof theseconsolidatedfinancialstatements.

notesDecember 31, 2008

(EUR ‘000)December 31, 2009

(EUR ‘000)

ASSETSGoodwill 7 29936(1) 29563Otherintangibleassets 7 37768 37020Property,plant,andequipment 8 78693 79526Investmentsaccountedforusingtheequitymethod 10 3643 5097Otherinvestments 10 2420 2377Deferredtaxassets 11 33986 31732Otherlong-termassets 12 65111 80093non-current assets 251 557 265 408

Inventoriesandcontractsinprogress 13 85759 97011Tradereceivables 14 74820 70178Otherreceivables 14 42341 26869Short-termfinancialassets 21 2275 2591Cashandcashequivalents 15 53943 17586Current assets 259 138 214 235

ToTAl ASSETS 510 695 479 643

EQUITY AnD lIABIlITIESCapitalstock 16 37285 37505

Capitalsurplus 16 124358 124788Treasuryshares 16 -7563 -9515Reserves 17 9220 16077Currencytranslationdifference 17 -17064 -16377Retainedearnings 17 5446 -9117Capital and reserves 151 682 143 361

non-controlling interests 684 781

EQUITY 152 366 144 142

Long-termborrowings 18 11885 6372Deferredtaxliabilities 11 470 1004Provisions 19 99545 97169Otherlong-termliabilities 20 45515 53413non-current liabilities 157 415 157 958

Short-termliabilities 18 24252 28275Othershort-termfinancialliabilities 21 2498 103Tradepayables 22 71518 48264Currentincometaxliabilities 1942 2198Otherpayables 23 100704 98703Current liabilities 200 914 177 543

ToTAl lIABIlITIES 358 329 335 501ToTAl EQUITY AnD lIABIlITIES 510 695 479 643

(1) The consolidated financial position at December 31, 2008 has been adjusted to reflect the final purchase price allocation for CIS Bio International SAS and its subsidiaries.


Consolidated income statement for the year ended December 31, 2009TheGrouphaschosentopresentitsincomestatementusingthe“functionof expenses”method.



(EUR ‘000)

Salesandservices 332607 359161Costof salesandservices 220272 227850Gross profit 112 335 131 311

Sellingandmarketingexpenses 30368 35316Generalandadministrativeexpenses 44215 59707Researchanddevelopmentexpenses 27001 28982Otheroperatingexpenses 24 18871 18887Otheroperating(income) 24 -25230 -8353Financialexpenses 25 13584 11990Financial(income) 25 -10947 -6865Shareof (profit)/lossof companiesconsolidatedusingtheequitymethod 10 2363 -812Profit/(loss) before taxes 12 110 -7 541

Tax(income)/expenses 26 6781 4752Profit for the period from continuing operations 5 329 -12 293

Profit/(loss)fortheperiodfromdiscontinuedoperations 6 0 0Profit/(loss) for the period 5 329 -12 293

Attributable to:Equityholdersof theparent 5300 -12492Non-controllinginterests 29 199

5 329 -12 293

Earnings per share from continuing and discontinued operations (EUR per share)-Basic 34 0.20 -0.48-Diluted 34 0.20 -0.47

Earnings per share from continuing operations (EUR per share)-Basic 34 0.20 -0.48-Diluted 34 0.20 -0.47

Earnings per share from discontinued operations (EUR per share)-Basic 34 0.00 0.00-Diluted 34 0.00 0.00


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Consolidated statement of comprehensive income for the year ended December 31, 2009

December 31, 2008(EUR ‘000)

December 31, 2009(EUR ‘000)

Income/(expense) for the period 5 329 -12 293

Changesinavailable-for-salefinancialassetreserves 65 2075

Changesinstrategichedgereserves -1113 1066

Changesinpost-employmentbenefitreserves -323 1123

Otherchangesinreserves 142

Changesincurrencytranslationdifferences -3942 -1264

Permanentfinancing-relatedchanges -1914 2643

Incometax-relatedchanges 1101 -692

net income/(expenses) recognized directly in equity -5 984 4 951

Comprehensive income -655 -7 342

Attributableto:Group -684 -7541

Non-controllinginterests 29 199


Consolidated statement of changes in shareholders’ equityEUR ’000 Attributable to equity holders of the parent non-

controllinginterests

Total

Capital stock

Capital surplus

Treasury shares

Hedging reserves

other reserves

Currency translation difference

Retained earnings

Share-holders’

equity

Balance at January 01, 2008

36 215 115 199 -6 746 1 802 6 595 -12 309 70 655 141 481

net income/(expenses) recognized directly in equity

-1 113 -116 -4 755 -5 984

Profit/(loss)fortheperiod

5300 29 5329

Comprehensive income for the period

-1 113 -116 -4 755 5 300 29 -655

Purchaseof treasuryshares

-817 -817

Dividends -4412 -4412

Employeestockoptionsandshare-basedpayments

2052 2052

Increase/(reduction)of capitalstock/capitalsurplus

1070 9159 10229

Acquisitionof non-controllinginterests

4488 4488

Balance at December 31, 2008

37 285 124 358 -7 563 689 8 531 -17 064 5 446 684 152 366

Balance at January 01, 2009

37 285 124 358 -7 563 689 8 531 -17 064 5 446 684 152 366

net income/(expenses) recognized directly in equity

1 066 3 198 687 4 951

Profit/(loss)fortheperiod

-12492 199 -12293

Comprehensive income for the period

1 066 3 198 687 -12 492 199 -7 342

Purchaseof treasuryshares

-1952 -1952

Dividends -2127 -2127

Employeestockoptionsandshare-basedpayments

2593 2593

Increase/(reduction)of capitalstock/capitalsurplus

220 430 650

Otherchangesinnon-controllinginterests

56 -102 -46

Balance at December 31, 2009

37 505 124 788 -9 515 1 755 14 322 -16 377 -9 117 781 144 142


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Consolidated cash flow statement

TheGrouphaschosentopresentthecashflowstatementusingtheindirectmethod.



(EUR ‘000)

CASH floW fRoM oPERATInG ACTIVITIES

net profit/(loss) for the period attributable to equity holders of the parent 5 300 -12 492

Adjustmentsfor:

Depreciationandimpairmentof tangiblefixedassets 8 12586 15460

Amortizationandimpairmentof intangibleassets 7 3404 5810

Write-off onreceivables 14 1122 325

Changesinfairvalueof financialassets(gains)/losses 3897 -1808

Changeinprovisions 19 2148 7965

Taxes 26 6781 2661

Shareof resultof associatesandjointventuresaccountedforusingtheequitymethod

10 2363 -812

Othernon-cashitems 28 2927 1254

net profit/(loss) before changes in working capital 40 528 18 363

Tradereceivables,otherreceivables,anddeferrals -6394 18142

Inventoriesandcontractsinprogress -28414 -11176

Tradepayables,otherpayables,andaccruals 8515 -22523

Changes in working capital -26 293 -15 557

Incometaxpaid/received,net -1647 -1137

Interestexpense 1944 2387

Interestincome -2616 -2680

net cash used in/generated from operations 11 916 1 376

CASH floW fRoM InVESTInG ACTIVITIES

Acquisitionof property,plant,andequipment -18672 -17175

Acquisitionof intangibleassets -6043 -3273

Disposalsof fixedassets 2866 322

Acquisitionof subsidiaries,netof acquiredcash 6 47195 0

Acquisitionof thirdpartyandequity-accountedcompanies -4375 -672

Disposalsof subsidiariesandequity-accountedcompanies,netof assignedcash

0 -51

Acquisitionof non-currentfinancialassetsandloansgranted -34076 0

Otherinvestingcashflows 28 -8986 -10880

net cash used in/generated from investing activities -22 091 -31 729

CASH floW fRoM fInAnCInG ACTIVITIES

Proceedsfromborrowings 11162 23289

Repaymentsof borrowings -10810 -24222

Interestpaid -1944 -2387

Interestreceived 2616 1129

Capitalincrease(orproceedsfromissuanceof ordinaryshares) 10050 608

Purchaseof treasuryshares -818 -1952

Dividendspaid -4018 -2039

Otherfinancingcashflows 28 -934 -1038

net cash used in/generated from financing activities 5 304 -6 612

net cash and cash equivalents at beginning of the year 58 210 53 943

Changeinnetcashandcashequivalents -4871 -36965

Exchangegains/lossesoncashandcashequivalents 604 608

net cash and cash equivalents at end of the year 15 53 943 17 586


Page note

38 1.Summaryof significantGroupaccountingpoliciesunderIFRS52 2.Descriptionof financialriskmanagementpolicies58 3.Criticalaccountingestimatesandjudgments61 4.Operatingsegments64 5.Listof equity-accountedinvestments65 6.Businesscombinationsandotherchangesinthecompositionof theGroup67 7.Goodwillandotherintangibleassets70 8.Property,plant,andequipment71 9.LeasetransactionsinvolvingIBAasalessee71 10.Investmentsaccountedforusingtheequitymethod73 11.Deferredtaxassets74 12.Otherlong-termassets74 13.Inventoriesandcontractsinprogress75 14.Tradeandothershort-termreceivables76 15.Cashandcashequivalents76 16.Capitalstockandshare-basedplans79 17.Reserves79 18.Liabilities82 19.Provisions83 20.Otherlong-termliabilities84 21.Othershort-termfinancialassetsandliabilities85 22.Tradepayables85 23.Otherpayables85 24.Otheroperatingexpensesandincome86 25.Financialexpensesandincome87 26.Incometax88 27.Employeebenefits89 28.Cashflowstatement90 29.Contingentliabilities92 30.Commitments93 31.Relatedpartytransactions96 32.Feesforservicesrenderedbythestatutoryauditors96 33.Eventsafterthebalancesheetdate96 34.Earningspershare

notes to the consolidated financial statements


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1.1 IntroductionThesignificantIFRSaccountingpoliciesappliedbytheGroupinpreparingtheIFRSconsolidatedfinancialstatementsaredescribedbelow.

1.2 Basis of preparationIBA’sconsolidatedfinancialstatementsfortheyearendedDecember31,2009havebeendrawnupincompliancewithIFRS(“InternationalFinancialReportingStandards”)andIFRICinterpretations(“InternationalFinancialReportingInterpretationsCommittee”)adoptedbytheEuropeanUnion,issuedandeffectiveorissuedandearlyadoptedatDecember31,2009.

Theseconsolidatedfinancialstatementshavebeenpreparedunderthehistoricalcostconvention,asmodifiedbytherevaluationof financialinstrumentsatfairvalue.

Thesefinancialstatementshavebeenpreparedonanaccrualsbasisandontheassumptionthattheentityisagoingconcernandwillcontinueinoperationintheforeseeablefuture.

Thepreparationof financialstatementsinaccordancewithIFRSrequirestheuseof certaincriticalaccountingestimates.Italsorequiresmanagementtoexercisejudgmentintheprocessof applyingtheCompany’saccountingpolicies.Theareasinvolvingahigherdegreeof judgmentorcomplexity,orareaswhereassumptionsandestimatesaresignificanttotheconsolidatedfinancialstatements,aredisclosedinNote3.

Theaccountingpoliciesadoptedinthepreparationof theseconsolidatedfinancialstatementscomplywithIFRSstandardsandinterpretationsasadoptedbytheEuropeanUnionatDecember31,2009.

Theseaccountingpoliciesareconsistentwiththoseusedinthepreparationof theannualconsolidatedfinancialstatementsfortheyear

endedDecember31,2008,withtheexceptionof thefollowingnewstandardsandinterpretations:➤IFRS3RandIAS27Rregardingbusiness

combinationsandacquisitionsof non-controllinginterests

➤IAS1RPresentationof FinancialStatements➤IAS23RBorrowingCosts➤IFRS8OperatingSegments➤IFRS7–Improvingdisclosuresaboutfinancial

instruments➤ImprovementstoIFRS(May2008,34

amendmentsto19standards)

TherevisedIFRS3andIAS27standardshavebeenearlyadopted.Theimpactof theseaccountingchangesisdescribedbelow.

IFRS 3R and IAS 27R – Business combinations and acquisitions of non-controlling interestsTheGrouphasearly-adoptedIFRS3BusinessCombinations(2008)forallbusinesscombinationsoccurringintheyearstartingJanuary1,2009andIAS27ConsolidatedandSeparateFinancialStatements(2008)foracquisitionsof non-controllinginterestsoccurringintheyearstartingJanuary1,2009.

AllbusinesscombinationsoccurringonorafterJanuary1,2009arerecognizedinaccordancewiththeacquisitionmethoddescribedintherevisedstandard,whichrequiresdirectlyattributabletransactioncosts(e.g.finder’sfees,legalfees,duediligencefees,andotherprofessionalorconsultingfees)tobeexpensedasincurred,ratherthanbeingincludedinthecostof acquisitionaswaspreviouslythecase.Therevisedstandardalsorequirescontingentconsiderationstobemeasuredatfairvalueinacquisitionaccountingandextendsthedisclosurerequirementsforbusinesscombinations.

Thischangeinaccountingpolicyhasbeenappliedprospectively.Businesscombinationscompletedin2008orpriorperiodshavenotbeenrestated.

1. Summary of significant group accounting policies under IfRS


Applicationof therevisedIFRS3toallof fiscal2008wouldhaveresultedintherecognitionof EUR7millionof additionalincome.TheGrouphasappliedtherevisedstandardforthebusinesscombinationsdiscussedinNote6.

TheGrouphasappliedtherevisedIAS27fortheacquisitionsof non-controllinginterestsdescribedinNote6.1.Withthenewaccountingmethod,acquisitionsof non-controllinginterestsarerecordedastransactionswithequityownersintheircapacityassuchanddonotgiverisetogoodwill.Previously,goodwillwasrecognizedwhenanon-controllinginterestinasubsidiarywasacquiredandwasmeasuredasthepositivedifferencebetweentheadditionalinvestmentandtheacquisition-datecarryingamountof theacquirednetequity.Thechangeinaccountingmethodwasappliedprospectivelyandhadnosignificantimpactonearningspershare.

IAS 1R – Presentation of Financial StatementsTheGroupappliestherevisedIAS1.Therevisedstandarddistinguishesbetweenchangesinequityarisingfromownertransactionsandchangesinequityarisingfromnon-ownertransactions.Thestandardalsointroducesastatementof comprehensiveincome,withtheoptionof showingallincomeandexpenseeitherinasinglestatementorintworelatedstatements.TheGrouphaschosentopublishtwostatements.TheGrouppresentsallownerchangesinequityinthestatementof changesinshareholders’equity.Non-ownerchangesinequityareshowninthestatementof comprehensiveincome.Comparativeinformationhasbeenrestatedtocomplywiththerevisedstandard.Thischangeinaccountingmethodaffectsonlypresentationandhasnoimpactonearningspershare.

IAS 23R – Borrowing CostsThestandardhasbeenrevisedtorequirecapitalizationof borrowingcostswhensuchcostsrelatetoaqualifyingasset.Aqualifyingassetisanassetthatnecessarilytakesasubstantialamountof timetogetreadyforuseorsale.Thiscouldbeproperty,plant,andequipmentormade-to-order

inventories.Inaccordancewiththetransitionalprovisionsindicatedinthestandard,theGrouphasadoptedtheseprovisionsprospectively.Previously,theGroupexpensedallborrowingcostsimmediately.BeginningJanuary1,2009,borrowingcostsarecapitalizedonqualifyingassets.Noadjustmentshavebeenmadeforborrowingcostsincurredandexpensedpriortothisdate,andthecomparativefigureshavenotbeenrestated.Thischangehasnosignificantimpactonearningspershare.

IFRS 8 – Operating Segments Thisstandardadoptsthesameapproachtothepresentationof operatingsegmentsinthenotestofinancialstatementsasusedbyanentity’soperatingdecisionmakerforinternalreportingrequirements.Previously,operatingsegmentsweredeterminedandpresentedinaccordancewithIAS14SegmentReporting.Anoperatingsegmentisacomponentof anentitythatengagesinbusinessactivitiesfromwhichitmayearnrevenuesandincurexpenses,includingrevenuesandexpensesrelatingtotransactionswithothercomponentsof thesameentity.Thesegment’soperatingresultsarereviewedregularlybythechief operatingdecisionmakertomakedecisionsaboutresourcestobeallocatedtothesegmentandassessitsperformance.Discretefinancialinformationisavailableforthiscomponent.

Comparativesegmentinformationhasbeenrestatedtocomplywiththetransitionalprovisionsinthisstandard.Thischangeinaccountingmethodaffectsonlythepresentationandcontentof theinformationreportedandhasnoimpactonearningspershare.SeeNote4forfurtherdetailsonoperatingsegments.

Amendment to IFRS 7 – Improving disclosures about financial instrumentsThisamendmentisintendedtoimprovedisclosuresaboutthemeasurementof financialinstrumentfairvalueandtomodifyorclarifydisclosuresaboutliquidityriskmanagement.Inthefirstyearof application,theamendmentdoesnotrequire


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entitiestoprovidecomparativedataforthenewinformationrequired.Theamendmentintroducesafairvaluehierarchy.Thishierarchyisintendedtoreflectthedegreeof reliabilityof valuationmethods.Ithasthreelevels:fairvaluebasedonpricesquotedinactivemarkets(Level1);fairvaluedeterminedusingvaluationtechniquesbasedalmostexclusivelyondirectlyorindirectlyobservableinputs(Level2);andfairvaluedeterminedusingvaluationtechniquesbasedtoasignificantextentonnon-observableinputs(Level3).

Additionally,theamendmentclarifiesthatquantitativematurityanalysisforderivativefinancialliabilitiesmustbebasedontheliquidityriskmanagementtechniquesfortheseinstruments.Accordingly,contractualcashflowsfromderivativesheldfortradingmaynolongerbeincludedinthescheduleof financialliabilities,andinclusionof financialguaranteesinthecontractualcashflowschedulemustbebasedontheearliesttimeatwhichtheseguaranteesmaybecalledupon.

Thefollowingstandardsandinterpretations,whileadoptedbytheEuropeanUnionandmandatorybeginningJanuary1,2009,hadnoimpactonthe2009consolidatedfinancialstatements:➤AmendmenttoIFRS2–Share-basedpayment:

Vestingconditionsandcancellations➤AmendmenttoIAS32andIAS1–Puttable

financialinstrumentsandobligationsarisingonliquidation

➤AmendmenttoIFRIC9andIAS39–Reassessmentof embeddedderivatives

➤AmendmenttoIFRC1andIAS27–Costof aninvestmentinasubsidiary,jointlycontrolledentity,orassociate

➤IFRIC11IFRS2–Groupandtreasurysharetransactions

➤IFRIC13–Customerloyaltyprograms➤IFRC14–Thelimitonadefinedbenefitasset,

minimumfundingrequirements,andtheirinteraction

ThesestandardsandinterpretationswereadoptedbytheEuropeanUnionpriortoDecember31,2009butwerenotmandatoryonJanuary1,2009.TheGrouphasdecidednottoearlyadopt.Atthisstage,itdoesnotappearthattheywillhaveanyimpactontheGroup’sconsolidatedfinancialstatements.➤AmendmenttoIAS32–Classificationof

rightsissues➤IFRIC12–Serviceconcessionarrangements➤IFRIC15–Agreementsfortheconstructionof

realestate➤IFRIC16–Hedgesof anetinvestmentina

foreignoperation➤IFRIC17–Distributionsof non-cashassets

toowners➤IFRIC18–Transfersof assetsfromcustomers

TheGroupconsidersthattheamendments,revisions,interpretations,andnewstandardslistedbelow,whichwerenotmandatoryatJanuary1,2009,willhaveanimpactonitsconsolidatedfinancialstatementswhentheyareappliedin2010orsubsequentperiods,dependingthestandard.Theirpotentialimpactiscurrentlybeingevaluated.➤AmendmenttoIAS39–FinancialInstruments:

RecognitionandMeasurement,regardingeligiblehedgeditems,adoptedbytheEuropeanUniononSeptember15,2009andapplicablefortheGroupbeginningJanuary1,2010

➤AmendmenttoIFRS2–Share-basedPayment,regardinggroupcash-settledshare-basedpaymenttransactions,adoptedbytheEuropeanUniononMarch23,2010andapplicablefortheGroupbeginningJanuary1,2010

➤Secondomnibusof improvementstoIFRSissuedinApril2009(12amendments),adoptedbytheEuropeanUniononMarch23,2010andapplicablefortheGroupbeginningJanuary1,2010

➤IFRS9–FinancialInstruments,asyetnotadoptedbytheEuropeanUnionbuttheoreticallyapplicablefortheGroupbeginningJanuary1,2013

➤IAS24(revised)–RelatedPartyDisclosures,asyetnotadoptedbytheEuropeanUnionbut


theoreticallyapplicablefortheGroupbeginningJanuary1,2011

➤IFRIC19–ExtinguishingFinancialLiabilitieswithEquity,asyetnotadoptedbytheEuropeanUnionbuttheoreticallyapplicablefortheGroupbeginningJanuary1,2011

Theseaccountingchangesaredescribedbelow.

Amendment to IAS 39 – Financial Instruments: Recognition and Measurement, regarding eligible hedged items Theamendmentclarifiesthatanentitymaydesignateaportionof thechangesinfairvalueorcashflowrelatingtoafinancialinstrumentasaneligiblehedgeditem.Theamendmentalsoindicatesthatinflationmaydesignatedasaneligiblehedgediteminsomecases.

Amendment to IFRS 2 – Share-based Payment, regarding group cash-settled share-based payment transactions Theamendmentclarifiesthescopeof thestandardandtheaccountingforcash-settledshare-basedpaymentswithinagroup.

IFRS 9 – Financial Instruments Phase1of thisnewstandard,ClassificationandMeasurement,waspublishedinlate2009andismandatorybeginningJanuary1,2013.Itdefinesanewapproachtotheclassificationandmeasurementof financialassets.Atinitialrecognition,allfinancialassetsaremeasuredatfairvalue.Insubsequentperiods,financialdebtinstrumentsareclassifiedeitherasassetsmeasuredatamortizedcostorasassetsmeasuredatfairvaluethroughprofitorloss.Thisclassificationdependsof theentity’smodelformanagingfinancialassetsandonthecontractualcashflowcharacteristicsof thefinancialasset.Insubsequentperiods,equityinvestmentsaremeasuredatfairvaluethroughprofitorlossorinequity(othercomprehensiveincome).

IAS 24 (revised) – Related Party Disclosures Therevisedversionof thisstandardisintendedtosimplifytheoldstandard,whichwasconsidered

toocomplex.Theamendmentprovidesapartialexemptionforgovernment-controlledentities.Italsorevisesthedefinitionof arelatedparty.IFRIC 19 – Extinguishing Financial Liabilities with Equity ThisinterpretationwaspublishedinNovember2009andiseffectiveforperiodscommencingonorafterJuly1,2010(fortheGroup,the2011period).Itclarifiestheaccountingwhenanentityrenegotiatesthetermsof itsdebtwiththeresultthattheliabilityisextinguishedbythedebtorissuingitsownequityinstrumentstothecreditor(referredtoasadebt-for-equityswap).Thisinterpretationindicatesthattheequityinstrumentsissuedare“considerationpaid”toextinguishtheliability(inthesamecategoryascash).Theliabilitymustbederecognized,andtheequityinstrumentsissuedarerecordedatfairvalue.If thefairvalueof theequityinstrumentsisnotreliablymeasurable,thefairvalueof theliabilityextinguishedisusedinstead.Profitorlossisrecognizedonthedifferencebetweenthecarryingamountof theliabilityextinguishedandthefairvalueof theequityinstrumentsissued.

Thisinterpretationdoesnotapplywhenthelenderisashareholderactinginitscapacityasshareholderorwhenthelenderandtheentityareundercommoncontrolbeforeandafterthetransactionandthetransactionincludesanequitydistributionfrom/contributiontotheentity.

TheGrouphasnotappliedthebelow-listedinterpretations,whichhadnotbeenadoptedbytheEuropeanUnioneitheratDecember31,2009oratthepublicationdateof its2009financialstatementsandwerenotmandatoryatJanuary1,2009.Intheopinionof theGroup,theseamendmentsandrevisionswillhavenoimpactonitsconsolidatedfinancialstatementsinfutureyears.➤AmendmenttoIFRIC14regardingprepayments

of minimumfundingrequirements➤IFRS1(revised)➤AmendmenttoIFRS1regardingadditional

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1.3 ConsolidationTheparentandallof itscontrolledsubsidiariesareincludedintheconsolidation.

1.3.1 SubsidiariesAssetsandliabilities,rightsandcommitments,andincomeandchargesof theparentanditscontrolledsubsidiariesareconsolidatedinfull.Controlisthepowertogovernthefinancialandoperatingpoliciesof anentitysoastoobtainbenefitsfromitsactivities.ItispresumedtoexistwhentheIBAGroupholdsmorethan50percentof theentity’svotingrights.Thispresumptionmayberebuttedif thereisclearevidencetothecontrary.Theexistenceandeffectof potentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGroupcontrolsanentity.Consolidationof asubsidiarytakesplacefromthedateof acquisition,whichisthedateonwhichcontrolof thenetassetsandoperationsof theacquireeareeffectivelytransferredtotheacquirer.Fromthedateof acquisition,theparent(theacquirer)incorporatesintotheconsolidatedincomestatementthefinancialperformanceof theacquireeandrecognizesintheconsolidatedbalancesheettheacquiredassetsandliabilities(atfairvalue),includinganygoodwillarisingontheacquisition.Subsidiariesaredeconsolidatedfromthedateonwhichcontrolceases.Thefollowingtreatmentsareappliedonconsolidation:➤Thecarryingamountof theparent'sinvestment

ineachsubsidiaryandtheparent'sportionof theequityof eachsubsidiaryareeliminated.

➤Inthestatementof consolidatedfinancialposition,non-controllinginterestsinthenetassetsof subsidiariesareidentifiedandreportedseparatelyinthecaption“Non-controllinginterests”;

➤Theportionof theprofitorlossof thefullyconsolidatedsubsidiariesattributabletosharesheldbyentitiesoutsidetheGroupispresentedintheconsolidatedincomestatementinthecaption"Profit/lossattributabletonon-controllinginterests”;

➤Intra-groupbalancesandtransactionsandunrealizedgainsandlossesontransactionsbetweenGroupcompaniesareeliminatedinfull.

Consolidatedfinancialstatementsarepreparedapplyinguniformaccountingpoliciestoliketransactionsandothereventsinsimilarcircumstances.

1.3.2 AssociatesAnassociateisanentityinwhichtheinvestorhassignificantinfluence,butwhichisneitherasubsidiarynorajointventure(seenextsubsection)of theinvestor.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsof theinvesteebutisnotcontrolthosepolicies.Itispresumedtoexistwhentheinvestorholdsatleast20percentof theinvestee’svotingpowerbutnottoexistwhenlessthan20percentisheld.Thispresumptionmayberebuttedif thereisclearevidencetothecontrary.

Allassociatesareaccountedforusingtheequitymethod.Participatinginterestsarepresentedseparatelyintheclosingdatestatementof consolidatedfinancialposition(inthecaption“Investmentsaccountedforusingtheequitymethod”)atanamountproportionatetotheassociate'sequity(asrestatedunderIFRS)includingtheresultfortheyear.Dividendsreceivedfromaninvesteereducethecarryingamountof theinvestment.

Theportionof theresultof associatesattributabletotheGroupispresentedseparatelyintheconsolidatedincomestatementinthecaption"Shareof profit/lossof companiesconsolidatedusingtheequitymethod.”

Unrealizedprofitsandlossesresultingfromtransactionsbetweenaninvestor(oritsconsolidatedsubsidiaries)andassociatesareeliminatedinproportiontotheinvestor'sinterestintheassociate.


1.3.3 Jointly controlled entitiesAswithassociates,theequitymethodisusedforentitiesoverwhichtheGroupexercisesjointcontrol(i.e.jointventures).

1.3.4 Treatment of goodwill or negative goodwillBusinesscombinationsarethebringingtogetherof separateentitiesorbusinessesintoonereportingentity.Abusinessisasetof activitiesandassetsappliedandmanagedtogetherinordertoprovideareturnoranyothereconomicbenefittoitsinvestors.Inallbusinesscombinations,oneentity(theacquirer)obtainscontrolthatisnottransitoryof oneormoreotherentitiesorbusinesses(theacquiree).

Allbusinesscombinations(acquisitionsof businesses)arisingafterJanuary1,2004areaccountedforusingthepurchasemethod.Theacquirermeasuresthecostof thebusinesscombinationattheacquisitiondate(thedateonwhichtheacquirerobtainscontroloverthenetassetsof theacquiree)andcomparesitwiththefairvalueof theacquiree’sidentifiablenetassets,liabilities,andcontingentliabilities.Thedifferencebetweenthetworepresentsgoodwill(if thisdifferenceispositive)ornegativegoodwill(if thisdifferenceisnegative).

ForallbusinesscombinationsarisingbeforeJanuary1,2004,noretrospectiverestatementtofairvaluehasbeenmade.

Similarruleshavebeenappliedtoinvestmentsaccountedforundertheequitymethod,exceptthatanygoodwillarisingonsuchinvestmentisincludedinthecarryingamountof theinvestment.

Negativegoodwillarisingonsuchinvestmentsisincludedinthedeterminationof theentity’sshareof theinvestee’sprofitorlossesintheperiodinwhichtheinvestmentisacquired.

Goodwillisnotamortizedbutinsteadistestedforimpairmentannually(ormorefrequentlyif circumstancessorequire).

Negativegoodwillisrecognizedasprofit.

1.3.5 Acquisition of non-controlling interestsTheexcessof theacquisitioncostof non-controllinginterestsoverthebalancesheetentryforthesenon-controllinginterestsisdeductedfromequity("economicunitmodel").

1.3.6 Translation of financial statements of foreign operationsAllmonetaryandnon-monetaryassetsandliabilities(includinggoodwill)aretranslatedattheclosingrate.Incomeandexpensesaretranslatedattherateof thedateof thetransaction(historicalexchangerate)oratanaveragerateforthemonth.

TheprincipalexchangeratesusedforconversiontoEURareasfollows:

Closing rate at December 31, 2008

Average annual rate 2008

Closing rate at December 31, 2009

Average annual rate 2009

USD 1.4040 1.4712 1.4332 1.3939

SEK 10.8988 9.6254 10.3111 10.6321

GBP 0.9682 0.7962 0.8999 0.8915

CNy 9.5655 10.2481 9.7705 9.5354

INR 68.9817 64.1041 67.0164 67.2465

JPy 126.9440 152.5253 134.2040 130.3441


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1.4 Intangible fixed assetsRecognitionasanintangiblefixedassetisrequiredwhen(1)thisassetisidentifiable,i.e.separable(itcanbesold,transferred,orlicensed)orwhereitarisesfromcontractualorotherlegalrights;(2)itisprobablethatfutureeconomicbenefitsattributabletotheassetwillflowtoIBA;(3)IBAcancontroltheresource,and(4)thecostof theassetcanbemeasuredreliably.

Intangibleassetsarecarriedatacquisitioncostlessanyaccumulatedamortizationandanyaccumulatedimpairmentloss.

Costincludesthefairvalueof theconsiderationgiventoacquiretheassetandanycostsdirectlyattributabletothetransaction,suchasrelevantprofessionalfeesornon-refundabletaxes.

Indirectcostsaswellasgeneraloverheadsarenotincluded.Expenditurepreviouslyrecognizedasexpenseisnotincludedinthecostof theasset.

Costsarisingfromtheresearchphaseof aninternalprojectareexpensedasincurred.

Costsarisingfromthedevelopmentphaseof aninternalproject(productdevelopmentprojectorITproject)arerecognizedasanassetwhenIBAcandemonstratethefollowing:technicalfeasibility,intentiontocompletedevelopment,howtheintangibleassetwillgenerateprobablefutureeconomicbenefits(e.g.theexistenceof amarketfortheoutputof theintangibleassetorfortheintangibleassetitself),availabilityof resourcestocompletedevelopment,andabilitytomeasuretheattributableexpenditurereliably.Maintenancecosts,aswellascostsforminorupgradesintendedtomaintain(ratherthanincrease)thelevelof performanceof theasset,areexpensedasincurred.

Theaboverecognitioncriteriaarefairlystringentandareappliedprudently.

Thecostof theintangibleassetsisallocatedonasystematicbasisovertheusefullifeof theassetusingthestraight-linemethod.

Theapplicableusefullivesareasfollows:

Amortizationcommencesonlywhentheassetisavailableforuseinordertoachievepropermatchingof costandrevenue.

1.5 Tangible fixed assets (property, plant, and equipment)Tangiblefixedassetsarecarriedatacquisitioncostlessanyaccumulateddepreciationandanyaccumulatedimpairmentloss.

Costincludesthefairvalueof theconsiderationgiventoacquiretheasset(netof discountsandrebates)andanydirectlyattributablecostof bringingtheassettoworkingconditionforitsintendeduse(inclusiveof importdutiesandtaxes).Directlyattributablecostsarethecostof sitepreparation,deliverycosts,installationcosts,relevantprofessionalfees,andtheestimatedcostof dismantlingandremovingtheassetandrestoringthesite(totheextentthatsuchacostisrecognizedasaprovision).

Eachpartof anitemof property,plant,andequipmentwithacostthatissignificantinrelationtothetotalcostof theitemisseparatelydepreciatedoveritsusefullifeusingthestraight-linemethod.Thedepreciable

Intangible fixed assets Useful life

Productdevelopmentcosts 3years,exceptif alongerusefullifeisjustified(howevernotexceeding5years)

ITdevelopmentcostsfortheprimarysoftwareprograms(e.g.ERP) 5years

Othersoftware 3years

Concessions,patents,licenses,know-how,trademarks,andothersimilarrights

3years,exceptif alongerusefullifeisjustified


Tangible fixed assets Useful life

Land Notdepreciated

Officebuildings 33years

Industrialbuildings 33years

Cyclotronsandvaults 15yearsexceptinspecificrarecircumstanceswhereadifferentusefullifeisjustified

Laboratoryequipment 5years

Othertechnicalequipment 5to10years

Hardware 3to5years(5yearsformainframes)

Furnitureandfittings 5to10years

Vehicles 2to5years

amountistheacquisitioncost,exceptforvehicles.Forvehicles,itistheacquisitioncostlesstheresidualvalueof theassetattheendof itsusefullife.

Maintenanceorrepaircostswhoseobjectiveistomaintainratherthanincreasethelevelof performanceof theassetareexpensedasincurred.

Theapplicableusefullivesareasfollows:

1.5.1 lease transactions involving IBA as a lesseeAfinancelease,whichtransferssubstantiallyalltherisksandrewardsincidenttoownership,isrecognizedasanassetandaliabilityatamountsequaltothefairvalueof theleasedassetsor,if lower,thepresentvalueof theminimumleasepayments(=sumof capitalandinterestportionsincludedintheleasepayments).Leasepaymentsareapportionedbetweenthefinancechargeandthereductionof theoutstandingliability.Thedepreciationpolicyforleasedassetsisconsistentwiththatforsimilarassetsowned.

1.5.2 Investment propertiesInvestmentpropertiesfortheGroup’sownusearecarriedatacquisitioncostlessanyaccumulateddepreciationandanyimpairmentloss.

1.6 Impairment of intangible and tangible fixed assetsAnimpairmentlossisrecognizedwhenthecarryingamountof anassetexceedsitsrecoverableamount,whichisthehigherof thefollowingtwoamounts:fairvaluelesscoststosell(themoneythatIBAcanrecoverthroughsale)orvalueinuse(themoneythatIBAcanrecoverif itcontinuestousetheasset).

Whenpossible,impairmenttestshavebeenperformedonindividualassets.When,however,itisdeterminedthatassetsdonotgenerateindependentcashflows,thetestisperformedatthelevelof thecash-generatingunit(CGU)towhichtheassetbelongs(CGU=thesmallestidentifiablegroupof assetsgeneratinginflowsthatarelargelyindependentfromthecashflowsfromotherCGUs).

GoodwillarisingonabusinesscombinationisallocatedamongtheGroup’sCGUsthatareexpectedtobenefitfromsynergiesasaresultof thebusinesscombination.Thisallocationisbasedonmanagement’sassessmentof thesynergiesgainedandisnotdependentonthelocationof theacquiredassets.

Sinceitisnotamortized,goodwillistestedforimpairmentannually,alongwiththerelatedCGU(ormorefrequentlydependingoncircumstances),evenif noindicationof impairmentexists.Otherintangibleandtangiblefixedassets/CGUsaretestedonlyif thereisanindicationthattheassetisimpaired.


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Anyimpairmentlossisfirstchargedagainstgoodwill.Anyimpairmentlossexceedingthebookvalueof goodwillisthenchargedagainsttheotherCGUs’fixedassetsonlyif therecoverableamountisbelowtheirnetbookvalue.Reversalsof impairmentlosses(otherthanongoodwill)arerecordedif justified.

1.7 InventoriesInventoriesaremeasuredatthelowerof costandnetrealizablevalueatthebalancesheetdate.

Thecostof inventoriescomprisesallcostsincurredinbringinginventoriestotheirpresentlocationandcondition,includingindirectproductioncosts.Administrativeoverheadsthatdonotcontributetobringinginventoriestotheirpresentlocationandcondition,sellingcosts,storagecosts,andabnormalamountsof wastedmaterialsarenotincludedinthecostof inventories.

Thestandardcostmethodisused.Thestandardcostof anitemof inventoryatperiod-endisadjustedtoactualcost.Theallocationof fixedproductionoverheadstotheproductioncostof inventoriesisbasedonthenormalcapacityof theproductionfacilities.

Thecostof inventoriesthatareordinarilyinterchangeableisallocatedbyusingtheweightedaveragecostformula.Thesamecostformulaisusedforallinventoriesthathaveasimilarnatureandusetotheentity.

Netrealizablevalueistheestimatedsellingpriceintheordinarycourseof businesslesstheestimatedcostsof completionandtheestimatedcostsnecessarytomakethesale(e.g.salescommissions).

IBAbooksawrite-downwhenthenetrealizablevalueatthebalancesheetdateislowerthanthecost.

IBAappliesthefollowingpolicyforwrite-downonslow-movingitems:

➤If nomovementafter1year:write-off over3years;

➤If movementoccursafterwrite-off:reversalof write-off.

However,inventoryisvaluedindividuallyatyear-end.Exceptionstotheabovegeneralrulearemadewhenjustified.

1.8 Revenue recognition (excluding contracts in progress, which are covered in the following section)Revenuearisingfromthesaleof goodsisrecognizedwhenanentityhastransferredthesignificantrisksandrewardsof ownershipandcollectabilityandrecoveryof therelatedreceivablesarereasonablyassured.

Thetransactionisnotasaleandrevenueisnotrecognizedwhere(1)IBAretainsanobligationforunsatisfactory

performancenotcoveredbynormalwarrantyprovisions;

(2)thereceiptof revenuefromaparticularsaleiscontingentonthederivationof revenuebythebuyerfromitssaleof thegoods;

(3)thebuyerhasthepowertorescindthepurchaseforareasonspecifiedinthesalescontract;and

(4)IBAisuncertainabouttheprobabilityof return.

Revenueisnormallyrecognizedwhenthebuyeracceptsdelivery,andinstallationandinspectionarecomplete.However,revenueisrecognizedimmediatelyuponthebuyer’sacceptanceof deliverywheninstallationissimpleinnature.

Revenuefromtherenderingof servicesisrecognizedbyreferencetothestageof completionof thetransactionatthebalancesheetdateusingrulessimilartothoseforconstructioncontracts(seenextsection);inotherwords,revenueisrecognizedastherelatedcostsareincurred.Unlessitisclearthatcostsarenotincurredonastraight-linebasis,revenuesarespreadevenlyovertheperiodof theservices.


Therecognitioncriteriaareappliedtotheseparatelyidentifiablecomponentsof asingletransactionwhenitisnecessarytoreflectthesubstanceof thetransaction.

Interestincomeisrecognizedusingtheeffectiveyieldmethod.Royaltiesarerecognizedonanaccrualbasisinaccordancewiththesubstanceof therelevantagreement.DividendsrelatingtoyearNarerecognizedwhentheshareholder’srighttoreceivepaymentisestablished(i.e.inyearN+1).

1.9 Contracts in progressContractcostscomprise:➤Directandindirectproductioncosts(sameas

forinventories,seeabove);➤Suchothercostsasarespecificallychargeable

tothecustomerunderthetermsof thecontract;➤Costsincurredinsecuringthecontractif they

canbeseparatelyidentifiedandmeasuredreliablyandif itisprobablethatthecontractwillbeobtained.

Whentheoutcomeof aconstructioncontract(i.e.estimationof thefinalmargin)canbeestimatedreliably,contractsinprogressaremeasuredatproductioncostincreased,accordingtothestageof completionof thecontract,bythedifferencebetweenthecontractpriceandproductioncost(“percentageof completion”method).Thestageof completionisdeterminedbycomparingactualcostsincurredtodatewithestimatedcoststocompletion.(Coststhatdonotreflectworkperformed,suchascommissionsandroyaltiesareexcludedforthiscalculation.)Thepercentageof completionisappliedonacumulativebasis.Whentheoutcomeof thecontractcannotbeestimatedreliably,revenueisrecognizedonlytotheextentof costsincurredthatitisprobablewillberecovered;contractcostsarerecognizedasanexpenseasincurred.Whenitisprobablethattotalcontractcostswillexceedtotalcontractrevenue,theexpectedlossisimmediatelyexpensedtoincome,andaloss-at-completionprovisionisrecorded.

TheGrouppresentsasanassetthenetamountduefromcustomersoncontractworkforallcontractsinprogressforwhichcostsincurredplusrecognizedprofits(lessrecognizedlosses)exceedprogressbillings.Progressbillingsnotyetpaidbycustomersandretentionareincludedintradereceivables.

TheIBAGrouppresentsasaliabilitythenetamountduetocustomersoncontractworkforallcontractsinprogressforwhichprogressbillingsexceedcostsincurredplusrecognizedprofits(lessrecognizedlosses).

WhenfinancialguaranteesmustbegiventothirdpartiesinconnectionwithacontractandtheseguaranteesinvolveafinancialriskforIBA,afinancialliabilityisrecognized.

1.10 ReceivablesReceivablesarerecognizedinitiallyatfairvalueandsubsequentlymeasuredatamortizedcost,i.e.atthenetpresentvalueof thereceivableamount.Unlesstheimpactof discountingismaterial,thenominalvalueistaken.Receivablesarewrittendownwhenreceiptof allorpartisuncertainordoubtful.

Ingeneral,IBAappliesthefollowingruletowrite-downsof badordoubtfuldebts:➤25%after90daysoverdue➤50%after180daysoverdue➤75%after270daysoverdue➤100%after360daysoverdue

However,therecoverabilityof receivablesisassessedonacase-by-casebasis,andexceptionstotheabovegeneralrulearemadewhenjustified.

1.11 financial assets TheGroupclassifiesitsfinancialassetsinthefollowingcategories:loansandreceivables,available-for-salefinancialassets,andfinancialassetsatfairvaluethroughprofitorloss.

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthat


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arenotlistedonanactivemarketandarenotheldfortrading.Gainsandlossesonloansandreceivablesarerecordedwhentheloansandreceivablesarederecognizedorimpaired.

TermdepositsareclassifiedasloansandreceivablesunderIAS39.

Investmentsininterestbearingsecurities,aswellasinvestmentsinshares(otherthansharesinsubsidiaries,jointventures,andassociates)areaccountedforasavailable-for-salefinancialassets.Theyarerecordedatfairvalue,withgainsandlossesreportedinequity,untiltheyareimpairedorsold,atwhichtimethegainsorlossesaccumulatedinequityarerecycledintotheincomestatement.Forfinancialassetsthatareclassifiedasavailableforsale,asignificantorprolongeddeclineinthefairvalueof theinvestmentbelowitscostisobjectiveevidenceof impairment.Impairmentlossesontheseinstrumentsarechargedtoincome.Increasesintheirfairvalueafterimpairmentarecrediteddirectlytoequity.

Revaluationof certainfinancialassetsusedtomanagetheGroup’scashposition,includingderivativeproducts,isrecordedatfairvaluethroughprofitorlossif thederivativeinstrumentcannotbevaluedseparately.

Whenthereareindicatorsof impairment,allfinancialassetsaresubjecttoanimpairmenttest.Theindicatorsshouldprovideobjectiveevidenceof impairmentasaresultof apasteventthatoccurredsubsequenttotheinitialrecognitionof theasset.Expectedlossesasaresultof futureeventsarenotrecognized,nomatterhowlikely.

1.12 Cash and cash equivalentsCashbalancesarerecordedattheirnominalvalue.Cashequivalentsareshort-term,highlyliquidinvestmentsthatcanbeusedforanypurposeandhaveamaturitydatenotexceedingthreemonthsfromacquisitiondate.Cashandcashequivalentsincludebankoverdrafts.If liquidfundsareheldinaspecialpurposeaccountintheformof highlyliquidinvestments

thatarerenewedatmaturityuntilneededforthespecialpurpose,thesecashequivalentsaredeemedrestrictedandareclassifiedasotherlong-termreceivables.

1.13 Capital stockOrdinarysharesareclassifiedinthecaption“Capitalstock.”Treasurysharesaredeductedfromequity.Movementsontreasurysharesdonotaffecttheincomestatement.

1.14 Deferred charges and accrued incomeDeferredchargesaretheproratedamountof chargesincurredinthecurrentorpriorfinancialperiodsbutwhicharerelatedtooneormoresubsequentperiods.Accruedincomeistheproratedamountof incomeearnedinthecurrentorpriorperiodswhichwillbereceivedonlyinsubsequentperiods.

1.15 Capital grants Capitalgrantsarerecordedasdeferredincome.Grantsarerecognizedasincomeatthesamerateastherateof depreciationof therelatedfixedassets.

1.16 ProvisionsAprovisionisrecognizedonlywhen:➤IBAhasapresentobligationtotransfer

economicbenefitsasaresultof pastevents;➤Itisprobable(morelikelythannot)thatsucha

transferwillberequiredtosettletheobligation;➤Areliableestimateof theamountof the

obligationcanbemade.

Whentheimpactislikelytobematerial(forlong-termprovisions),theamountrecognizedasaprovisionisestimatedonanetpresentvaluebasis(discountfactor).Theincreaseinprovisionduetothepassageof timeisrecognizedasaninterestexpense.

Apresentobligationarisesfromanobligatingeventandmaytaketheformof eitheralegalobligationoraconstructiveobligation.(AconstructiveobligationexistswhenIBAhasanestablished


patternof pastpracticethatindicatestootherpartiesthatitwillacceptcertainresponsibilitiesandasaresulthascreatedavalidexpectationonthepartof thoseotherpartiesthatitwilldischargethoseresponsibilities.)AnobligatingeventleavesIBAnorealisticalternativetosettlingtheobligation,independentlyof itsfutureactions.

Provisionsforsiterepair,restoration,anddecommissioningcostsarerecordedasappropriateinapplicationof theabove.

If IBAhasanonerouscontract(thatis,if theunavoidablecostsof meetingtheobligationsunderthecontractexceedtheeconomicbenefitsexpectedtobereceivedunderit),thepresentobligationunderthecontractisrecognizedasaprovision.

Aprovisionforrestructuringisrecordedonlyif IBAcandemonstratethattheCompanyisunderanobligationtorestructureatthebalancesheetdate.Suchobligationmustbedemonstratedby(a)preparingadetailedformalplanidentifyingthemainfeaturesof therestructuringand(b)raisingavalidexpectationtothoseaffectedthatitwillcarryouttherestructuringbystartingtoimplementtheplanorbyannouncingitsmainfeaturestothoseaffected.

1.17 Pensions and other employee benefits1.17.1 PensionsPremiumspaidinrelationtoadefinedcontributionplanareexpensedasincurred.Definedcontributionplansarepost-employmentbenefitplansunderwhichIBApaysfixedcontributionsintoaseparateentity(afund)andwillhavenolegalorconstructiveobligationtopayfurthercontributionsif thefunddoesnotholdsufficientassetstopayallemployeebenefitsrelatingtoemployeeserviceinthecurrentandpriorperiods.

Asfromthedateof acquisitionof CISBioInternationalSASanditssubsidiaries,theGrouphasdefinedbenefitplans.

Theseentitlementsarisingfromcommitmentstoemployeesof CISBioInternationalSASarerecordedinprovisionsforemployeebenefitsinaccordancewithIAS19andconsistof thefollowing:➤Entitlementsof employeesactiveatyear-end

intheformof benefits,supplements,andotherretirementcompensationnotcoveredbythepensionorinsurancefunds;and

➤Entitlementsconferredasaresultof theloweringof theretirementageforemployeesworkingorhavingworkedinhazardareas.

Obligationsarisingfromtheapplicationof thesedefinedbenefitplansarevaluedaccordingtotheprojectedunitcreditmethodandarediscountedbecausetheymaybedischargedmanyyearsaftertherelatedserviceswereperformed.Actuarialcalculationsarerequiredtoobtainareliableestimateof thevalueof accumulatedemployeebenefitsforservicesrendered.Actuarialdifferencesmayresultfromanincreaseordecreaseinthepresentvalueof adefinedbenefitobligation.Theseactuarialdifferencesincludeadjustmentsbasedonexperience(theimpactof disparitiesbetweenpreviousactuarialassumptionsandwhatactuallyhappened)andtheeffectof differentactuarialassumptions(suchasanadjustmentof theemployeeturnoverrateorachangeinthediscountrate).Forthevaluationof definedbenefitliabilities,theGrouphaschosentorecognizeactuarialdifferencesimmediatelyandfullyinequityintheconsolidatedstatementof comprehensiveincome.

Thecostof pastservicesistheincreaseinthepresentvalueof thedefinedbenefitobligationarisingfromemployeeservicesinprioryears.Thecostof pastservicesisrecognized(inoperatingresults)onastraight-linebasisovertheaverageremainingserviceperiodbeforetheassociatedbenefitsvest.Theotherelementsareincludedinfinancialresultsasotherfinancial(income)/expense.


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1.17.2 Stock option plans and share-based paymentsShare-basedpaymentsaretransactionstobepaidwithshares,stockoptions,orotherequityinstruments(grantedtoemployeesorotherparties)andtransactionspaidincashorotherassetswhentheamountpayableisbasedonthepriceof theGroup’sshares.

Alltransactionsinvolvingshare-basedpaymentsarerecognizedasexpenses.

Equity-settledshare-basedpaymenttransactionsaremeasuredatthefairvalueof thegoodsorservicesreceivedatthedateonwhichtheGrouprecognizesthegoodsandservices.If thefairvalueof goodsorservicescannotbedetermined,theGroupusesthefairvalueof theequityinstrumentsgranted.Equity-settledshare-basedpaymentsarenotremeasured.

Cash-settledshare-basedpaymentsaremeasuredatthefairvalueof theliability.IBAdoesnothaveplansof thistype.

1.18 Deferred taxesThecomprehensivemethodandtheliabilitymethodareused.Deferredtaxesarerecordedonthetemporarydifferencesarisingbetweenthecarryingamountof thebalancesheetitemsandtheirtaxbase,usingtherateof taxexpectedtoapplywhentheassetisrecoveredortheliabilityissettled.

Therearethreeexceptionstothegeneralprinciplethatdeferredtaxesarerecognizedonalltemporarydifferences.Deferredtaxesarenotrecognizedfor:➤Goodwillthatisnotamortizedfortaxpurposes.➤Initialrecognitionof anassetorliabilityina

transactionthatisnotabusinesscombinationandthataffectsneitheraccountingprofitnortaxableprofit.

➤Investmentsinsubsidiaries,branches,associates,andjointventures.DeferredtaxesmayberecognizedonlywhenIBAhascontrol

overthedistributionanditislikelythatdividendswillbedistributedintheforeseeablefuture.

Adeferredtaxassetisrecognizedforalldeductibletemporarydifferencestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized.Thesameprincipleappliestorecognitionof deferredtaxassetsforunusedtaxlossescarriedforward.Thisassessmentissubjecttotheprincipleof prudence.

DeferredtaxesarecalculatedforeachfiscalentityintheGroup.IBAisabletooffsetdeferredtaxassetsandliabilitiesonlyif thedeferredbalancesrelatetoincometaxesleviedbythesametaxationauthority.

1.19 Payables after and within one yearPayablesafterandwithinoneyeararemeasuredatamortizedcost,i.e.atthenetpresentvalueof thepayableamount.Unlesstheimpactof discountingismaterial,thenominalvalueistaken.

1.20 Accrued charges and deferred incomeAccruedchargesaretheproratedamountof expenseswhichwillbepaidinasubsequentfinancialperiodbutrelatetoapriorperiod.Deferredincomeistheproratedamountof incomereceivedinthecurrentorpriorperiodsbutrelatedtoasubsequentperiod.

1.21 foreign currency transactionsForeigncurrencytransactionsareconvertedintothefunctionalcurrencyof theGroupentitypartytothetransactionusingtheexchangeratesprevailingatthedatesof thetransactions.Foreignexchangegainsandlossesresultingfromthesettlementof suchtransactionsandfromtheconversionattheperiod-endexchangeratesof monetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognizedintheincomestatement.

Exchangedifferencesarisingfromtheconsolidationof currencyitemsthatconstitutepartof thereportingentity'snetinvestmentinaforeignentity(i.e.whensettlementisneitherplanned


norlikelytooccurintheforeseeablefuture)arerecordedinequityif thefollowingtwoconditionsaremet:(1)theloanismadeineitherthefunctionalcurrencyof thereportingentityortheforeignoperationand(2)theloanismadebetweenthereportingentityandaforeignoperation.

1.22 Derivatives and hedging activitiesDerivativeinstrumentsareaccountedforatfairvalueasfromthedatethecontractsareenteredinto.Changesinthefairvalueof derivativeinstrumentsareaccountedforintheincomestatementunlesstheyqualifyascashflowhedgesunderIAS39.TheGroupdesignatescertainderivativetransactionsashedgesof thevariabilityof thefairvalueof recognizedassetsorliabilities(fairvaluehedges);asunrecognizedfirmcommitments;orashedgesof thecashflowvariabilityarisingfromaspecificriskassociatedwitharecognizedassetorliabilityorwithahighlyprobableforecasttransaction(cashflowhedges).

TheGroupdocumentsattheinceptionof thetransactiontherelationshipbetweenthehedginginstrumentsandthehedgeditem,aswellasitsriskmanagementobjectiveandstrategyforundertakingvarioushedgetransactions.TheGroupalsodocumentsitsassessment,bothathedgeinceptionandonanongoingbasis,of whetherthederivativesthatareusedinhedgingtransactionsarehighlyeffectiveinoffsettingchangesinfairvaluesorcashflowsof hedgeditems.

a) fair value hedgesChangesinthefairvalueof derivativesthataredesignatedandqualifyasfairvaluehedgesarerecordedintheincomestatement,togetherwithanychangesinthefairvalueof thehedgedassetorliabilitythatareattributabletothehedgedrisk.

b) Cash flow hedgesTheeffectiveportionof changesinthefairvalueof derivativesthataredesignatedandqualifyascashflowhedgesisrecognizedinequity.Thegainor

lossrelatingtotheineffectiveportionof thehedgeisrecognizedimmediatelyintheincomestatement.

Amountsaccumulatedinequityarereclassifiedtoincomeintheperiodswhenthehedgeditemaffectsprofitorloss(e.g.whentheforecastsalethatishedgedtakesplace).

Whenahedginginstrumentexpiresorissold,orwhenahedgenolongerqualifiesforhedgeaccounting,anycumulativegainorlossexistinginequityatthattimeremainsinequityandisreclassifiedtotheincomestatementwhentheforecasttransactionisultimatelyrecognizedinincome.Whenaforecasttransactionisnolongerexpectedtooccur,thecumulativegainorlossthatwasreportedinequityisimmediatelytransferredtotheincomestatement.

c) Derivatives that do not qualify for hedge accountingCertainderivativeinstrumentsdonotqualifyforhedgeaccounting.Suchderivativesarerecognizedatfairvalueonthebalancesheet,withchangesinfairvaluerecognizedintheincomestatement.Theseinstrumentsaredesignatedaseconomichedgesinasmuchastheyarenotusedtospeculateonpositions.

1.23 operating segmentsAbusinesssegmentisadistinguishablecomponentengagedinprovidingproductsorservicessubjecttorisksandreturnsthataredifferentfromthoseof otherbusinesssegments.Ageographicalsegmentisengagedinprovidingproductsorserviceswithinaspecificeconomicenvironmentsubjecttorisksandreturnsthataredifferentfromthoseof segmentsoperatinginothereconomicenvironments.


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2. Description of financial risk management policies

2.1 financial risk factorsTheGroup’sactivitiesexposeittoavarietyof financialrisks,of whichthelargestismarketrisk(includingcurrencyrisk).Otherfinancialrisksincludecreditrisk,liquidityrisk,interestraterisk,andcommodityrisk.TheGroup’soverallfinancialriskmanagementprogramfocusesontheunpredictabilityof financialmarketsandseekstominimizepotentialadverseeffectsontheGroup’sfinancialperformance.TheGroupusesderivativefinancialinstrumentstohedgecertainriskexposures.

Financialriskmanagementiscarriedoutbyacentraltreasurydepartment(GroupTreasury)underpoliciesapprovedbytheAuditCommitteeof theBoardof Directors.Thesepoliciesprovidewrittenprinciplesforoverallfinancialriskmanagement,aswellaswrittenpoliciescoveringspecificareas,suchasforeignexchangerisk,useof derivativefinancialinstrumentsandnon-derivativefinancialinstruments,andinvestingexcessliquidity.GroupTreasuryidentifies,evaluates,andhedgesfinancialrisksinclosecooperationwiththeGroup’soperatingunits.

2.1.1 Market riska) Foreign exchange riskTheGroupoperatesinternationallyandisexposedtoforeignexchangeriskarisingfromvariouscurrencyexposures,primarilywithrespecttotheU.S.dollar,theChineseyuan,theBritishpound,andtheSwedishkrona.Foreignexchangeriskarisesfromfutureandcommittedcommercialtransactions,recognizedfinancialassetsandliabilities,andnetinvestmentsinforeignoperations.

Tomanageforeignexchangeriskarisingfromfutureandcommittedcommercialtransactionsandfromrecognizedassetsandliabilitiesdenominatedinacurrencydifferentfromtheentity’sfunctionalcurrency,entitiesintheGroupuseforwardexchangecontracts,transactedwithGroupTreasury.GroupTreasuryisresponsiblefor

hedgingthenetpositionineachforeigncurrencybyusingforwardexchangecontractsenteredintowithbankswhenpossibleandappropriate.

Forsegmentreportingpurposes,eachsubsidiarydesignatescontractswithGroupTreasuryasfairvaluehedgesorcashflowhedges,asappropriate.ExternalforeignexchangecontractsaredesignatedatGrouplevelashedgesof foreignexchangeriskonspecificassets,liabilities,orcommittedorfuturetransactionsonagrossbasis.

TheGroup’sgeneralhedgingpolicyistohedgeanyconfirmedsalescontractsdenominatedinaforeigncurrencyaswellasexpectednetoperationalcashflowswhentheycanbereasonablypredicted.AppropriatedocumentationispreparedinaccordancewithIAS39.TheCFOapprovesandtheCEOisinformedof significanthedgingtransactions,withreportingtotheAuditCommitteetwiceayear.

IntercompanyloansdenominatedinforeigncurrenciesareenteredintotofinancecertainsubsidiariesandexposetheGrouptofluctuationsinexchangerate.

TheGrouphascertaininvestmentsinforeignoperations,whosenetassetsareexposedtoforeigncurrencytranslationrisk.Currencyexposurearisingfromthenetassetsof theGroup’sforeignoperationsismanagedprimarilythroughborrowingsdenominatedintherelevantforeigncurrencies.

Currencytransactionalrisk:TheGrouphassometransactionalcurrencyexposurethatarisesfromsalesorpurchasesbyanoperatingunitincurrenciesotherthantheunit’sfunctionalcurrency.ThetransactionalforeigncurrencyriskmainlyarisesfromopenpositionsintheBelgianentitiesagainsttheU.S.dollar.Approximately15percentof theGroup’ssalesaredenominatedincurrenciesotherthanthe


functionalcurrencyof theoperatingunitmakingthesale,whilealmost92percentof costsaredenominatedintheunit’sfunctionalcurrency.WheretheGroupconsidersthattherearenonaturalhedgingopportunities,forwardexchangecontractsandforwardcurrencyoptionsareusedtocovercurrencyexposure.

b) Other market risksTheGroupisexposedtosecuritiesriskbecauseof commercialpaperandsharesheldbytheGroupinthecontextof itsexcesscashmanagement.Riskismitigatedbyaconservativeselectionof highlyrated,highlyliquidinvestmentproducts.However,theCompanycannotforeseesuddenchangesintheratingsof theseproductsormarketchangesthatmayimpairliquidity.

2.1.2 Credit riskTheGrouphasnosignificantexposuretocreditrisk.TheCompanypolicyforlargecontractsistohaveappropriatelettersof creditissuedpriortodeliveryof theequipment.TheCompanyhasalsoageneralagreementwiththeBelgiannationalexportcreditinsuranceinstitution(OND)thatprovidessystematiccoverageof alllargeequipmenttransactions.

WithrespecttoitsPharmaceuticalsbusinesssegment,theCompanyhasinstitutedatradecreditinsurancepolicyintheUnitedStates.Fortherestof theworld,owingtothegenerallypublicnatureof thecustomers,riskcanbeheldatacceptablelevelsbycloselymonitoringcustomerpayments.

Thetableinsection2.2presentsthefinancialassetsof theGroupbyvaluationmethod.Thecarryingamountof thesefinancialassetsrepresentsthemaximumcreditexposureof theGroup.

Thefairvalueof afinancialinstrumentisthepriceatwhichapartywouldaccepttherightsand/orobligationsof thisfinancialinstrumentfromanotherindependentparty.

2.1.3 liquidity riskPrudentliquidityriskmanagementimpliesmaintainingsufficientcashandmarketablesecuritiesandtheavailabilityof fundingthroughanadequateamountinoutstandingcreditfacilities.Duetothedynamicnatureof theunderlyingbusinesses,GroupTreasuryaimstomaintainflexibilityinfundingbykeepingcreditlinesavailable.

Inlate2009,IBAstrengthenedtheavailabilityof financingbyobtainingalong-termcreditfacilityof EUR50millionfromtheEIB(EuropeanInvestmentBank)toprovidefinancingforresearchanddevelopmentprojects.Underthetermsof thefacility,theGroupagreedtocomplywithspecificcovenantsregardingtheGroup’sdebt.

TheGrouphascreditlinestotalingEUR100million,of whichonethirdhasbeenutilizedtodate.

Inaddition,inthecontextof itsprotontherapycontracts,IBAhasnegotiatedamanufacturingcreditfacilityof EUR60millionthatcanbeutilizedoverfouryearsbeginningDecember31,2009.


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2.1.4 Interest rate riskTheGroupexposuretotheriskof changesinmarketinterestratesrelatesprimarilytotheGroup’slong-termdebtobligationswithfloatinginterestrates.TheGroupenteredintointerestrateswapsinordertolimittheimpactof interestratefluctuationonitsfinancialresults.IBAdoesnotapplyhedgeaccountingtothesetransactions,andtheseinstrumentsarethereforerevaluedthroughprofitandloss.

IBAanalyzedtheimpactof a1percentfluctuationininterestratesonitsconsolidatedincomestatement.Theeffectwouldhavebeeninsignificant.

2.1.5 Commodity riskTheGroup’slargeautomotivefleetforitsU.S.radiopharmaceuticaldistributionbusinessexposesittofluctuationsinthepriceof gasoline.TheGroupentersintocontractstohedgepetroleumproductpricefluctuationsasitdeemsnecessary.TheexistingcontractmaturesinJanuary2010.

Suchcontractsdonotqualifyforeitherhedgeaccountingorfairvaluehedgeaccounting.Thesehedgesarethereforeadjustedthroughprofitorloss.

December 31, 2008 (EUR '000) Due < 1 year 1-2 years 2-5 years > 5 years Total

fInAnCIAl lIABIlITIES

Bankborrowings 0 3562 2996 3298 0 9856Financeleaseliabilities 0 3390 4431 1081 0 8902Otherinterest-bearingliabilities 645 5296 517 0 0 6458Tradepayables 11875 59643 0 0 0 71518OtherST&LTpayables 5143 100635 7788 16419 29097 159082ToTAl 17 663 172 526 15 732 20 798 29 097 255 816

December 31, 2009 (EUR '000) Due < 1 year 1-2 years 2-5 years > 5 years Total

PASSIfS fInAnCIERS

Bankborrowings 403 2025 2861 294 0 5583Financeleaseliabilities 0 1924 1123 1451 643 5141Otherinterest-bearingliabilities 0 267 0 0 0 267Tradepayables 14597 33667 0 0 0 48264OtherST&LTpayables 8678 114033 43705 4273 7281 177970ToTAl 23 678 151 916 47 689 6 018 7 924 237 225

Thetablebelowsummarizesthematurityprofileof theGroup’sfinancialliabilities.


December 31, 2008 December 31, 2009

(EUR '000) Categorynet carrying

valuefair

valuenet carrying

valuefair

value

fInAnCIAl ASSETSTradereceivables Loansand

receivables74820 74820 70178 70178

Long-termreceivablesoncontractsinprogress

Loansandreceivables

29097 29097 39591 39591

Available-for-salefinancialassets Availableforsale 28525 28525 32192 32192Long-termreceivablesfordecommissioningof sites

Loansandreceivables

1418 1418 1395 1395

Otherlong-termreceivables Loansandreceivables

5328 5328 6009 6009

Non-tradereceivablesandadvancepayments

Loansandreceivables

31877 31877 17414 17414

Othershort-termreceivables Loansandreceivables

10464 10464 9455 9455

Otherinvestments Availableforsale 2420 2420 2377 2377Investmentsinstructuredproducts FVPL2 743 743 906 906Cashandcashequivalents Loansand

receivables53943 53943 17586 17586

Hedgingderivativeproducts Hedgeaccounting 2011 2011 2433 2433Derivativeproducts–other FVPL2 264 264 158 158ToTAl 240 910 240 910 199 694 199 694

fInAnCIAl lIABIlITIESBankborrowings FLAC 9856 9856 5583 5583Financeleaseliabilities FLAC 8902 8902 5141 5141Otherinterest-bearingliabilities FLAC 6458 6458 267 267Tradepayables FLAC 71518 71518 48264 48264Hedgingderivativeproducts Hedgeaccounting 891 891 0 0Derivativeproducts–other FVPL1 1607 1607 103 103Otherlong-termliabilities FLAC 45516 45516 53413 53413Amountsduetocustomersforcontractsinprogress

FLAC 26759 26759 28933 28933

Socialsecurityliabilities FLAC 18818 18818 17066 17066Othershort-termliabilities FLAC 55127 55127 52704 52704Short-termtaxliabilities FLAC 1942 1942 2198 2198Short-termbankcredit FLAC 10921 10921 23656 23656ToTAl 258 315 258 315 237 329 237 329

PFCA: FLAC: Financial liabilities measured at amortized cost.FVPL1: Fair value through profit or loss (held for trading)FVPL2. Fair value through profit or loss (derivative-based asset whose value could not be separated from the underlying notional value)

AtDecember31,2009,thenetcarryingamountof thesefinancialassetsandliabilitiesdidnotdeviatesignificantlyfromcalculatedfairvalue.

Thecaption“Investments”(FVPL2),totalingEUR0.9million,showsthefairvalueofsyntheticcollateralizeddebtobligationsatDecember31,2009.ThesesyntheticcolleralizeddebtobligationswerepurchasedforEUR3.0millioninthecontextof thecontractforthesaleoftheprotontherapysystemtotheUniversityof Pennsylvania.Inlieuofrequiringan

advancepaymentguarantee,thiscontractprotectedthebuyer’sdownpaymentbyplacingitinanescrowaccount.Seekingalowrisk(AAArating),highlyliquidinvestment,thefinancialinstitutionworkingwithIBAonthisprojectrecommendedinvestinginthemostseniortrancheofthesefinancialproducts.ThefairvalueofthesesyntheticCDOswasdeterminedbyafinancialinstitution.Inall,revaluationtomarketresultedinaprofitof EUR0.1millionin2009(comparedtoafinancialchargeofEUR2.2millionin2008).

2.2 financial assets and liabilities, additional informationTheassetsandliabilitiesof theGrouparevaluedasfollows:


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(EUR '000) level 1 level 2 level 3 December 31, 2009

HEDGE-ACCoUnTED fInAnCIAl ASSETS-Forwardforeignexchangecontracts 1930 1930-Foreignexchangeoptions 6 6-Interestratecaps 497 497Available-for-sale financial assets 32 192 32 192other available-for-sale assets 2 377 2 377

fInAnCIAl ASSETS AT fAIR VAlUE THRoUGH PRofIT oR loSS-Forwardforeignexchangecontracts 96 96-Foreignexchangerateswaps 13 13-Foreignexchangeoptions 40 40-Interestrateswaps 9 9-Syntheticcollateralizeddebtobligations 906 906

fInAnCIAl lIABIlITIES AT fAIR VAlUE THRoUGH PRofIT oR loSS-Oilfuturescontracts 53 53-Forwardforeignexchangecontracts 29 29-Foreignexchangerateswaps 21 21

The“Derivativeswithahedgingrelationship”captionsinassetsandliabilitiesincludethefairvalueof forwardexchangecontracts.

In2009,thecaption"Financialassets-Derivativeproducts–other"mainlyincludesthefairvalueof forwardexchangecontracts(EUR0.2million).In2008,"FinancialAssets-Derivativeproducts–other"mainlyincludedthefairvalueofforwardexchangecontractsandforwardcurrencyoptions.

In2008,thecaption"Financialliabilities-Derivativeproducts–other"mainlyincludedthefairvalueofoilfuturescontracts(EUR1.1million)andinterestrateswaps(EUR0.4million).

TheGroupmayacquireandsellnon-controllinginterestsinoutsidecompanies,asdictatedbyitsbusinessstrategy.Theseinvestmentsareconsideredas“Availableforsale.”

2.3 Categories of financial instrumentsFairvaluesofhedginginstrumentsaredeterminedbyvaluationtechniqueswidelyusedinfinancialmarketsandareprovidedbyreliablefinancialinformationsources.Fairvaluesarebasedonthetradedatesof theunderlyingtransactions.

TheGroupusesthefollowinghierarchytoclassifyfinancialinstrumentsrecognizedatfairvalueaccordingtothereliabilityof thevaluationmethodsused:Level1:Fairvalueisbasedonpricesquotedinactive

markets.Level2:Fairvalueisdeterminedusingvaluation

techniquesbasedalmostexclusivelyondirectlyorindirectlyobservableinputs.

Level3:Fairvalueisdeterminedusingvaluationtechniquesbasedtoasignificantextentonnon-observableinputs.


2.3.2 fair value through income statement – Held for tradingAtDecember31,2009,theGroupheldaninterestrateswapagreementwithanotionalamountof USD0.8million.Underthisswap,theCompanyreceivedavariableinterestrateof 0.35percentatDecember31,2009andpaidarateof 8.5percent.

AtDecember31,2009,theGroupalsoheldUSdollar,Canadiandollar,Czechkoruna,andBritishpoundforwardforeignexchangeoptionsandexchangerateswapstohedgefuturecashflowsinthesecurrencies.

ThroughitsUSradiopharmaceuticaldistributionbusiness,theGrouphassomeexposuretofluctuationsinthepriceof gasoline.Tomanagethisrisk,theGrouphadenteredintoanumberof futurescontractsinvolvinganotionalof 52,000gallonsatDecember31,2009.ThesecontractsmatureinJanuary2010.

AstheydonotqualifyforhedgeaccountingunderIAS39,thevarioushedgeinstrumentsdiscussedinthissectionaremeasuredatfairvaluethroughprofitandloss.Aprofitof EUR0.1milliononthesehedginginstrumentshadbeencreditedtoincomeatDecember31,2009,comparedwithalossof EUR2.1millionatDecember31,2008.

2.4 Capital management TheGroupiscontinuallyoptimizingitscapitalstructuretomaximizeshareholdervaluewhilekeepingthefinancialflexibilitydesirabletoexecutestrategicprojects.

In2009,IBAInvestmentsSCRL,asecond-tiersubsidiaryof IBASA,initiatedanIBASAstockpurchaseprogramof EUR0.2million(EUR0.8millionin2008).

Inlightof itsresultsfortheyear,theGroupdecidednottodistributedividendsfor2009.However,thisdecisiondoesnotrepresentachangeinpolicy,anditintendstoresumedividenddistributionassoonaspossible.ItwillberecalledthattheOrdinaryGeneralMeetingof May13,2009approvedthepaymentof adividendof EUR0.08pershare.

TheGrouphasagreedtocomplywithadebt-to-equityratiocovenantunderthetermsof aEUR50millioncreditfacilityreceivedfromtheEIBforitsresearchanddevelopmentprojects.Thiscovenantisconditionalondrawingsonthelineof creditgrantedtoIBAandwasthereforenotineffectatDecember31,2009.

Hedge instrument maturities

Equity < 1 year 1-2 years > 2 years

AT DECEMBER 31, 2008Cashflowhedges(USD) 689 510 -486 665

AT DECEMBER 31, 2009 Cashflowhedges(USD) 1863 614 1249 0Interestratehedges -108 -108 0 0

2.3.1 Hedge-accounted financial instruments AtDecember31,2009,theGroupheld26forwardexchangecontractsand2foreignexchangeoptioncontractsdesignatedashedgesof expectedfutureUSDcashflows.Incomparison,atDecember31,2008,itheld20forwardexchangecontractsand12foreignexchangeoptioncontractsforthispurpose.TheGroupalsohasaninterestratecapagreementtohedgeinterestrateriskonamanufacturingcreditfacilityforaprotontherapyproject.

Thesehedgesaredeemedhighlyeffective.

Thesehedgesgeneratedaprofitof EUR1.1millionin2009,comparedtoalossof EUR1.1millionin2008.Thisprofithasbeencrediteddirectlytoequity.

TheamountincludedinequityatDecember31,2008andtransferredtotheincomestatementin2009isEUR0.8million.


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3. Critical accounting estimates and judgments

TheGroupmakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldomequaltherelatedactualresults.Theestimatesandassumptionsthathaveasignificantriskof causingamaterialadjustmenttothecarryingamountsof assetsandliabilitieswithinthenextfinancialyeararediscussedbelow.

(a) Income taxesAtDecember31,2009,theGrouphadaccumulatednetoperatinglossesof EUR159.4millionusabletooffsetfuturetaxableprofits(essentiallyinBelgium,France,Italy,Spain,theUnitedKingdom,andtheUnitedStates),aswellastemporarydifferencesof EUR112.9million.Itrecognizeddeferredtaxassetsof EUR30.3millionwithaviewtothefutureuseof taxlossescarriedforward,aswellastemporarydifferencesof EUR1.4million.

Thevaluationof theseassetsdependsonanumberof judgmentalassumptionsregardingthefutureprobabletaxableprofitsof differentGroupsubsidiariesindifferentjurisdictions.Theseestimatesareestablishedprudentlyonthebasisof themostrecentinformationavailabletotheCompany.If circumstanceschangeandthefinaltaxoutcomeisdifferentfromthatamountsinitiallyrecorded,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

Inordertomitigatethisriskandgiventherapidevolutionof thetechnologicalenvironmentinwhichtheGroupoperates,estimatedtaxableprofitsbeyondahorizonof fouryearsarenotconsidered.

(b) Provision for decommissioning costsTheproductionof FDG(Pharmaceuticalbusinesssegment)generatesradiationandresultsinthecontaminationof productionsitefacilities.ThissituationmayrequiretheGrouptopayrestorationcoststocomplywithregulationsinthese

variousjurisdictions,aswellaswithanylegalorconstructiveobligations.

AnalysisandestimatesareperformedbytheGroup,togetherwithitslegaladvisers,inordertodeterminetheprobability,timing,andamountinvolvedinaprobablerequiredoutflowof resources.Provisionhasbeenmadeforunavoidablecostsinconnectionwithdecommissioningthesiteswhereradiopharmaceuticalagentsareproduced.Theseprovisionsaremeasuredatthenetpresentvalueof thebestestimateof thenecessarycosts.

AtDecember31,2009,theseprovisionsstoodatEUR36.9million,comparedwithEUR34.7millionatDecember31,2008.TheywereprimarilyforobligationsinconnectionwitharadiopharmaceuticalproductionfacilitybelongingtotheGroup'sFrenchsubsidiary,CISBioInternationalSAS.

TheFrenchsubsidiaryCISBioInternationalSAShasheldnuclearoperatorstatussinceDecember2008andassuchisrequiredtosetasiderestrictedassetsforthefuturedecommissioningandrestorationof thenuclearmedicinefacilitiesatthesiteinSaclay,France.AtDecember31,2009,theserestrictedassetscametoEUR32.2million,comparedwithEUR28.5millionatDecember31,2008.IntheUS,approximatelyEUR1.4millionhasbeendepositedinblockedaccountsinordertomeetlegalobligationsincertainStates(IllinoisandCalifornia).

(c) Provision for obligation to take over radioactive equipment and sourcesInthecontextof thegradualdisengagementfromradioactivesourceproduction(productionof cobaltandcesium)attheSaclaysiteinFrance,aprovisionhasbeenmadetomeetobligationsforthetakeoveranddisposalof usedradioactivesourcesandcertainequipment(irradiators)


inFrance.Thisprovisionisvaluedatthenetpresentvalueof themostprobableestimatesof unavoidablecostsforthetreatmentanddisposalof theseusedsources.Thisprovisionisdiscountedbasedontheestimatedplanforsourcerecovery.AtDecember31,2009,thisprovisionstoodatEUR17.6million,comparedwithEUR18.9millionatDecember31,2008.

(d) Revenue recognitionContractsinprogressarevaluedattheircostof production,increasedbyincomeaccruedasdeterminedbythestageof completionof thecontractactivityatthebalancesheetdate,totheextentthatitisprobablethattheeconomicbenefitsassociatedwiththecontractwillflowtotheGroup.Thisprobabilityisbasedonjudgment.If certainjudgmentalcriteriadifferfromthoseusedforpreviouslyrecognizedrevenues,theGroup’sincomestatementisaffected.

Whenappropriate,theCompanyrevisesitsestimatedmarginatcompletiontotakeintoaccounttheassessmentof anyresidualriskarisingfromthiscontractoverseveralyears.Whenthefinaloutcomeof theseuncertaintiesdiffersfrominitialestimations,theGroup’sincomestatementisaffected.

(e) Provision for defined benefit plansIBArecordsprovisionsforthedefinedbenefitplansof itssubsidiaryCISBioInternationalSAS.Theseemployeebenefitprovisionswerecalculatedonthebasisof thefollowingassumptionsatDecember31,2009:➤Discountrate:4.7%.(5.2%at

December31,2008)➤Mortalitytable:TH-TF00-02.➤Inflationrate:2%.➤Salaryadjustmentrate:2.5%perannum➤Pensionadjustmentrate:1%,excludinginflation.➤Retirementage:65formanagement,63for

non-management(63formanagement,60fornon-managementatDecember31,2008).

SeeNote27.2foradditionalinformation.

(f) Estimating the value in use of intangible and tangible fixed assetsTherecoverableamountsof tangibleandintangiblefixedassetsaredeterminedona“valueinuse”basis.Valueinuseisdeterminedonthebasisof IBA’smostrecentbusinessplans,asapprovedbytheBoardof Directors.TheseplansincorporatevariousassumptionsmadebymanagementandapprovedbytheBoardastohowthebusiness,profitmargins,andinvestmentswillevolve.

SeeNote7.1foradditionalinformation.

(g) Valuation of private equity instruments IBArevaluesitsprivateequityholdingsusingeitherthediscountedcashflowmethodorthesharevalueassignedtothemduringthemostrecentroundsof financing.

Itshouldbenotedthat,atDecember31,2008,IBAhadrecordedanimpairmentof EUR3.6millionforoneprivateequityinvestmentduetoadownwardrevisionof estimatedgainsfromtheuseof aninnovativetechnology.Noadditionalimpairmentof financialinstrumentswasrecordedin2009.

(h) Development costs for new moleculesExpensesincurredtopreparetheGroup’sfacilitiesforthefuturecommercializationof newmoleculesinphase2developmentarerecognizedasassetswhenmanagementconsidersitlikelythatsuchmoleculescanbebroughttomarketandthatfuturerevenueswilloffsetthedevelopmentcostsincurred.AtDecember31,2009,thesecapitalizedexpensesstoodatEUR1million(seeNote7.2).

(i) Stock optionsOnJune19,2009,IBA’sBoardof Directorsapprovedathree-yearextensionof theexerciseperiodsforthe2004,2005,2006,and2007stockoptionplans,applicabletoBelgianemployeesonly.

Themodelusedtovaluetheadditionalcostof thisextensionisBlack&Scholes.ThisadditionalcostiscalculatedasthedifferencebetweentheoptionvalueatJune19,2009withoutanextension


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andtheoptionvalueatJune19,2009withthethree-yearextensionontheunexercisedoptionsremainingunderthevariousstockoptionplansaffected.Impactonthe2009financialstatementsisminimal.

Thefollowingassumptionswereusedforthetwocalculations:

Assumptions for plans without extensions 2004 Plan 2005 Plan 2006 Plan 2007 Plan

Strikepriceatgrant 6360 6370 13672 19970

Expectedlifeof option 1.28 2.06 2.33 2.33

Stockpriceat6/19/2009 6.48 6.48 6.48 6.48

Volatility 47.66% 43.10% 42.72% 42.72%

Dividend 1.29% 1.29% 1.29% 1.29%

Risk-freerate 0.93% 1.64% 1.64% 1.64%

Assumptions for plans with extensions 2004 Plan 2005 Plan 2006 Plan 2007 Plan

Strikepriceatgrant 6360 6370 13672 19970

Expectedlifeof option 4.28 5.06 5.33 5.34

Stockpriceat6/19/2009 6.48 6.48 6.48 6.48

Volatility 39.24% 38.51% 38.10% 38.09%

Dividend 1.29% 1.29% 1.29% 1.29%

Risk-freerate 2.79% 3.19% 3.19% 3.19%


4. operating segments

Applicationof IFRS8OperatingSegmentstoperiodsbeginningonorafterJanuary1,2009hadnoimpactonthesegmentinformationintheGroup'sconsolidatedfinancialstatements.TheGroup’smanagementhasdeterminedthattheoperatingsegmentsarethesameasthepreviousbusinesssegmentsunderIAS14SegmentInformation.

Onthebasisof itsinternalfinancialreportstotheBoardof DirectorsandgiventheGroup’sprimarysourceof riskandprofitability,IBAhasidentifiedtwolevelsof operatinginformation:➤Businesssegment-basedinformation(Level1)➤Geographicalsegment-basedinformation

(Level2)

4.1 Business segments AtDecember31,2009,theGrouphadtwoprimarybusinesssegmentsforreportingpurposes:(1)Equipmentsand(2)Pharmaceuticals.➤Equipments :Thissegmentconstitutesthe

technologicalbasisof theGroup’smanybusinessesandencompassesdevelopment,fabrication,andservicesassociatedwithmedicalandindustrialparticleaccelerators,protontherapysystems,andawiderangeof dosimetryproducts.

➤Pharmaceuticals:Thissegmentencompassesradiopharmaceuticals(productionanddistribution)andbioassays:-Radiopharmaceuticals.IBAisactiveinthe

areaof positronemissiontomography(PET),whereitproducesanddistributesprimarilyfluorodeoxyglucose(FDG),achemicalcompoundusedinmolecularimagingforthediagnosisof manydiseases(principallycancer).IBAalsohasapresenceinthefieldof singlephotonemissioncomputedtomography(SPECT).

-Bioassays.IBAproducesanddistributesalineof biomarkersusedforinvitromedicaldiagnosis.TheGroup’sHTRF®technologyalsogivesitapresenceintheinvitroscreening

of newdrugsforthepharmaceuticalindustryandbiotechcompanies.

Thetableonthefollowingpageprovidesdetailsof theincomestatementforeachsegment.Anyintersegmentsalesarecontractedatarm’slength.


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Equipments (EUR ’000)

Pharmaceuticals (EUR ’000)

Group (EUR ’000)

YEAR EnDED DECEMBER 31, 2008Netsalesandservices 184276 150900 335176Intersegmentsales -1640 -929 -2569External sales 182 636 149 971 332 607

Segment result 7 965 14 963 22 928Unallocatedexpenses(1) -5818Financial(expense)/income(2) -2637Shareof profit/(loss)of companiesconsolidatedusingtheequitymethod 0 -2363 -2363Result before tax 12 110Tax(expense)/income(2) -6781RESUlT foR THE PERIoD 5 329

Segmentassets 199979 274741 474720Equity-accountedinvestmentsallocatedtoasegment 3643 3643Unallocatedassets(3) 32332ToTAl ASSETS 199 979 278 384 510 695

Segmentliabilities 161100 197020 358120Unallocatedliabilities(4) 209ToTAl lIABIlITIES 161 100 197 020 358 329

other segment informationCapitalexpenditure(incl.fixedassetsincompaniesacquiredin2008) 4453 18512Depreciationandimpairmentof property,plant,andequipment 1816 10770Amortizationof intangibleassets 809 2595Non-cashexpense/(income) 291 -940Headcountatyear-end 973 1159

YEAR EnDED DECEMBER 31, 2009Netsalesandservices 156878 204803 361681Intersegmentsales -1304 -1216 -2520External sales 155 574 203 587 359 161

Segment result 537 -1 902 -1 365Unallocatedexpenses(1) -1863Financial(expense)/income(2) -5125Shareof profit/(loss)of companiesconsolidatedusingtheequitymethod 0 812 812Result before tax -7 541Tax(expense)/income(2) -4752RESUlT foR THE PERIoD -12 293

Segmentassets 177495 266701 444196Equity-accountedinvestmentsallocatedtoasegment 5097 5097Unallocatedassets(3) 30350ToTAl ASSETS 177 495 271 798 479 643

Segmentliabilities 159998 175378 335376Unallocatedliabilities(4) 125ToTAl lIABIlITIES 159 998 175 378 335 501

other segment informationCapitalexpenditure 1951 18497Depreciationandimpairmentof property,plant,andequipment 1969 13491Amortizationof intangibleassets 901 4908Non-cashexpense/(income) 2125 4670Headcountatyear-end 842 1146

(1) Unallocated expenses consist mainly of expenses for stock option plans and stock plans.(2) Cash and taxes are handled at the Group level and are therefore presented under unallocated financial/(expense)/income.(3) Unallocated assets include deferred tax assets and the assets of IBA Participations SPRL, IBA Corporate Services SA, and IBA Investments SCRL.(4) Unallocated liabilities include the liabilities of IBA Participations SPRL, IBA Corporate Services SA, and IBA Investments SCRL.


4.2 Geographical segmentsTheGroup’sbusinesssegmentsoperateintwomaingeographicalareas,theUnitedStatesandtherestoftheworld.

Thesegeographicalsegmentshavebeendeterminedonthebasisofeconomicandpoliticalcontext,thedegreeofproximityofthebusinessactivities,andthespecificrisksassociatedwiththebusinessactivitiesinagivengeographicalarea.

Thesalesfigurespresentedbelowarebasedoncustomerlocation,whereassegmentbalancesheetitemsarebasedonassetlocation.

USA (EUR ’000)

RoW (EUR ’000)

Group (EUR ’000)

YEAR EnDED DECEMBER 31, 2008Netsalesandservices 133369 199238 332607

Segmentassets 92310 382667 474977

Investmentsaccountedforusingtheequitymethod 844 2799 3643

Unallocatedassets 32075

Total assets 510 695

Capitalexpenditure(incl.fixedassetsfromacquisitionsin2008) 8516 14449

USA (EUR ’000)

RoW (EUR ’000)

Group (EUR ’000)

YEAR EnDED DECEMBER 31, 2009Netsalesandservices 107291 251870 359161

Segmentassets 73502 369312 442814

Investmentsaccountedforusingtheequitymethod 1352 3745 5097

Unallocatedassets 31732

Total assets 479 643

Capitalexpenditure 4744 15704


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5. lists of subsidiaries and equity-accounted investments

AtDecember31,2009,theIBAGroupconsistedof IBASAandatotalof 40companiesandassociatesin14countries.Of these,33arefullyconsolidatedand7areaccountedforusingtheequitymethod.TheGrouphaselectednottousetheproportionalmethodforanyof thejointcompanies.

5.1 list of subsidiaries

nameCountry of incorporation

Share of equity held (%)

Change in % held compared to December 31, 2008

IBAMolecularHolding(BE0880.070.706) Belgium 100% -IBAPharmaS.A.(BE0860.215.596) Belgium 100% -IBAPharmaInvestS.A.(BE0874.830.726) Belgium 61.9% -IBAParticipationsS.P.R.L.(BE0465.843.290) Belgium 100% -IBAInvestmentsS.C.R.L.(BE0471.701.397) Belgium 100% -IBACorporateServicesS.A.(BE0471.889.261) Belgium 100% -MolecularImagingS.A.(BE0819.674.051) Belgium 100% 100%IBARadioIsotopesS.A.(BE0466.749.548)(1) Belgium 0.0% -99.73%IonBeamBeijingMedicalApplianceTechnologyServiceCo.Ltd. China 100% -IonBeamApplicationsCo.Ltd. China 100% -IBARadioIsotopesFranceS.A.S. France 100% -IBADosimetryGmbh Germany 100% -IBAMolecularImaging(India)Pvt.Ltd. India 61.9% -IBARadioIsotopiItaliaS.r.L. Italy 100% -IBAMolecularSpainS.A. Spain 100% -MediFlashHoldingA.B. Sweden 100% -IBADosimetryA.B. Sweden 100% -IBAMolecularUKlimited UK 100% -IBADosimetryNorthAmericaInc. USA 100% -IBAProtonTherapyInc. USA 100% -IBAIndustrialInc. USA 100% -IBAMolecularNorthAmericaInc. USA 100% -RadioMedCorporation USA 100% -IBAUSAInc. USA 100% -IBAMolecularMontrealHoldingCorp. USA 100% -BetaPlusPharmaS.A.(BE0479.037.569) Belgium 75% -IBAParticleTherapyGmbh Germany 100% -RadiopharmaPartnersS.A.(BE0879.656.475) Belgium 100% -CISBioInternationalS.A.S. France 100% -CisBioSpa Italy 100% -CisBioGmbh Germany 100% -CisBioUSInc. USA 100% -IBABioAssaysS.A.S. France 100% 100%IBAMolypharmaS.L. Spain 100% 100%

(1) On December 1, 2009, this entity was merged with IBA Pharma

IBABioAssaysSAS,MolecularImagingSA,andIBAMolypharmaSLwereestablishedin2009andthereforedonotgiverisetogoodwill.

5.2 5.2 list of equity-accounted investments

nameCountry of incorporation

Share of equity held (%)

Change in % held compared to December 31, 2008

StribaGmbh Germany 50% -PharmalogicPetServicesof MontrealCie Canada 48% -PetLinqL.L.C. USA 40% -RadioIsotopeMéditerranée Morocco 25% -Molypharma Spain 24.5% -SwanIsotopenAG Switzerland 20.2% 20.2%ScetiMedicalLaboKK Japan 39.8% -


6. Business combinations and other changes in the composition of the group

6.1 Acquisition of companiesInJanuary2009,IBApurchasedstockissuedthroughacapitalincreasebytheSwisscompanySwanIsotopenAG.ThenetacquiredassetsandgoodwillarisingfromitsJanuary2009purchaseof equityinSwanIsotopenAGareasfollows:

(CHf '000) fair valueCarrying amount of net

acquired assets

Cashandcashequivalents 800 800Otherreceivables 14 14Property,plant,andequipment 163 163Intangiblefixedassets 35 35Tradepayables -12 -12Otherpayables -72 -72nET ACQUIRED ASSETS (CHf ‘000) 928 928 nET ACQUIRED ASSETS (EUR ‘000) 623 623

Price paid (EUR ‘000) 669

-Cash 669Fairvalueof netacquiredassets(EUR‘000) 623

Goodwill (EUR ‘000) 46

Determinationof goodwillarisingontheMay31,2008acquisitionof CISBioInternationalSASanditssubsidiaries(acquisitionof theadditional80.1percentinterestinRadiopharmaPartnersSA)wasfinalizedinMay2009,asfollows:

(EUR '000) fair valueCarrying amount of net

acquired assets

Cashandcashequivalents 66617 66617Tradeandothershort-termreceivables 45221 45221Inventories 23643 16528Property,plant,andequipment 18098 16615Intangiblefixedassets 28859 23398Investmentsaccountedforusingtheequitymethod 133 133Otherlong-termassets 10362 3194Tradeandothershort-termpayables -69549 -69549Provisions -89215 -87749Borrowings -9626 -9626Otherlong-termliabilities -83 -83

net acquired assets 24 460 4 699

Finalgoodwillarisingontheinclusionof CISBioInternationalSASanditssubsidiariesinthescopeof consolidationof theIBAGroupisasfollows:

(EUR '000)Carrying amount of net

acquired assets

Price paid (EUR ‘000) 22 178-Cash 18736-Valueof calloptionfor15%of shares 2784-Directacquisition-relatedexpenses 658

fair value of net acquired assets (80.1%) 19 592

Goodwill (EUR ‘000) 2 586


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AtDecember31,2008,thecontributionofCISBioInternationalSAStoGroupREBITwasEUR1.2million.ItscontributiontonetprofitfromcontinuingoperationswasEUR10.4million.If CISBioInternationalSAShadbeenacquiredonJanuary1,2008,atyear-endtheGroup’snetresultwouldhavebeen-EUR6.3million,andsalesandserviceswouldhavebeenEUR381.7million.

6.2 Disposal of companiesInSeptember2009,theGroupsolditssubsidiaryIBAAdvancedRadiotherapyAB.Netassetsdisposedof inthissalewereasfollows:

(SEK '000) fair valueCarrying amount of net

acquired assets

Cashandcashequivalents 166 166Tradereceivables 3791 3791Otherreceivables 310 310Inventories 4856 4856Property,plant,andequipment 23 23Tradepayables -5886 -5886Otherpayables -1299 -1299Provisions -1500 -1500nET ASSETS DISPoSED (SEK ‘000) 461 461 nET ASSETS DISPoSED (EUR ‘000) 51

Price received (EUR '000) 0

-Cash 0Fairvalueof netassetsdisposedof (EUR‘000) 51

Goodwill (EUR ‘000) (51)


7. Goodwill and other intangible assets

7.1 GoodwillMovementsof goodwillaredetailedasfollows:

(EUR ‘000)At January 1, 2008 26 538

Finaladjustmentstopreviouslyacquiredgoodwill 0

Additionsthroughbusinesscombinations 2586*Goodwillimpairment 0Currencytranslationdifference 812At December 31, 2008 29 936*

At January 1, 2009 29 936Finaladjustmentstopreviouslyacquiredgoodwill 0Additionsthroughbusinesscombinations 0Goodwillimpairment 0Currencytranslationdifference -373At December 31, 2009 29 563

(*) The consolidated financial position at December 31, 2008 has been adjusted to reflect the final purchase price allocation for CIS Bio International SAS and its subsidiaries. This resulted in an upward adjustment of EUR 1.2 million in goodwill, offset by provisions.

Thegoodwillgeneratedbyanacquisitionisallocatedtothecash-generatingunits(CGUs)concerned,andanimpairmenttestiscarriedoutannuallyontheCGUs’fixedassets(includinggoodwill).

In2008,inclusionof CISBioInternationalSASanditssubsidiariesresultedintherecognitionof goodwillof EUR2.6million.Goodwillfromtheacquisitionof 19.9percentof ScetiMedicalLaboKKonMay31,2008isincludedinthevalueof theequity-accountedinvestment.

Additionstogoodwillin2008andwereallocatedtothePharmaceuticalssegment.

Thefollowingtablesummarizesallocationof thecarryingamountof goodwillbybusinesssegment:

(EUR ‘000) Equipments Pharmaceuticals Group

December 31, 2008 3548 26388 29 936December 31, 2009 3618 25945 29 563

Post-taxdiscountrateapplied,2008 9.00% 9.20%Long-termgrowthrate,2008(*) 2.60% 2.60%

Post-taxdiscountrateapplied,2009 10.86% 10.76%

Long-termgrowthrate,2009(*) 2.60% 3.00%

(*) Rate consistent with expected growth in the segment


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7.2 other intangible assets

(EUR ‘000) SoftwarePatents and trademarks

Development costs other Total

Gross carrying amount at January 1, 2008 4 272 1 807 1 015 5 046 12 140Additions 1101 4306 257 378 6042

Disposals -66 -64 -41 -57 -228Transfers 32 -124 238 1143 1289Changesinconsolidationscope 3147 15435 0 38584 57166Currencytranslationdifference 128 7 -11 154 278Gross carrying amount at December 31, 2008 8 614 21 367 1 458 45 248 76 687

Accumulated depreciation at January 1, 2008 2 842 1 275 604 2 800 7 521Additions 906 307 198 1993 3404Disposals -4 -64 -41 -57 -166Transfers -58 0 0 52 -6Changesinconsolidationscope 2887 10232 0 14861 27980Currencytranslationdifference 42 3 11 130 186Accumulated depreciation at December 31, 2008 6 615 11 753 772 19 779 38 919

net carrying amount at January 1, 2008 1 430 532 411 2 246 4 619net carrying amount at December 31, 2008 1 999 9 614 686 25 469 37 768


Disposals -6 -1 -1 0 -8Transfers 784 266 -340 1211 1921Changesinconsolidationscope 0 0 0 0 0Currencytranslationdifference -51 -3 13 -68 -109Gross carrying amount at December 31, 2009 10 966 22 352 1 891 46 555 81 764

Accumulated depreciation at January 1, 2009 6 615 11 753 772 19 779 38 919Additions 1255 1143 105 3307 5810Disposals -6 -4 0 0 -10Transfers -215 372 3 -3 157Changesinconsolidationscope 0 0 0 0 0Currencytranslationdifference -35 -1 -10 -86 -132Accumulated depreciation at December 31, 2009 7 614 13 263 870 22 997 44 744

net carrying amount at January 1, 2009 1 999 9 614 686 25 469 37 768net carrying amount at December 31, 2009 3 352 9 089 1 021 23 558 37 020

Therecoverableamountsof subsidiaries’fixedassetshavebeendeterminedona“valueinuse”basis.Valueinusehasbeendeterminedonthebasisof IBA’slatestbusinessplans,asapprovedbytheBoardof Directorsinthecontextof thestrategicplan.Thecashflowsbeyondafour-yearperiodhavebeenextrapolatedusingthegrowthratesshowninthetableabove.Impairmenttestingusesgrossbudgetedoperationalmarginsestimatedbymanagementonthebasisof pastperformanceand

futuredevelopmentprospects.Discountratesusedreflectthespecificrisksrelatedtothesegmentsinquestion.

If thegrowthrateisdecreasedby100basispointsandthediscountrateisincreasedby100basispoints,therecoverableamountremainsgreaterthanthecarryingamountof thetestedassets.Noimpairmentwasidentifiedin2008or2009.


Themajorityof theintangibleassetsinvolvesoftware,licensesfortheproductionanddistributionof radiopharmaceuticalagents,exclusivedistributionrights,developmentcostsfornewmolecules,andcustomerlists,accountedforbyapplyingthepurchasemethodtoacquisitionsmadebytheGroup.

Theremainingintangibleassetshavetodoprimarilywiththevalueof customerrelationships,whichareamortizedovertheanticipatedlifeof theserelationships.

Amortizationexpenseforintangibleassetswasrecognizedintheincomestatementinthelineitems“Costof salesandservices,”“Salesand

marketingexpenses,”“Generalandadministrativeexpenses,”and“Researchanddevelopmentexpenses.”

Fordetailsonimpairmenttesting,seeNote7.1.

Noimpairmentof theintangibleassetsdiscussedinthisNotewasidentifiedatDecember31,2008orDecember31,2009.

In2009,theGroupcapitalizedEUR1.0millionindevelopmentcostsfornewlabeledmolecules.


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8. Property, plant, and equipment

(EUR ‘000)land and buildings

Plant, ma-chinery, and

equipment

furniture, fixtures, and

vehicles

other proper-ty, plant, and

equipment Total


Disposals -69 -5597 -1257 -29 -6952Transfers 9072 13090 2123 -25579 -1294Changesinconsolidationscope 55347 62215 3556 56764 177882Currencytranslationdifference -1794 1443 -440 -8 -799Gross carrying amount at December 31, 2008 85 174 128 360 18 584 65 282 297 400

Accumulated depreciation at January 1, 2008 11 166 29 874 9 059 0 50 099Additions 1420 9888 2218 -940 12586Disposals -48 -3780 -1195 0 -5023Transfers 17 -9 -1 0 7

Changesinconsolidationscope 48589 52660 3255 55278 159782Currencytranslationdifference 232 863 161 0 1256Accumulated depreciation at December 31, 2008 61 376 89 496 13 497 54 338 218 707

net carrying amount at January 1, 2008 10 299 22 989 3 422 23 082 59 792net carrying amount at December 31, 2008 23 798 38 864 5 087 10 944 78 693

Gross carrying amount at January 1, 2009 85 174 128 360 18 584 65 282 297 400Additions 2002 3171 629 13298 19100Disposals -145 -859 -1080 -122 -2206Transfers 4596 9059 33 -15609 -1921Changesinconsolidationscope 0 0 0 0 0Currencytranslationdifference 174 -340 80 -120 -206Gross carrying amount at December 31, 2009 91 801 139 391 18 246 62 729 312 167

Accumulated depreciation at January 1, 2009 61 376 89 496 13 497 54 338 218 707Additions 4296 8913 2275 1460 16944Disposals -145 -638 -1004 -95 -1882Transfers 3022 5868 -116 -8931 -157Changesinconsolidationscope 0 0 0 0 0Currencytranslationdifference -211 -655 -51 -54 -971Accumulated depreciation at December 31, 2009 68 338 102 984 14 601 46 718 232 641

net carrying amount at January 1, 2009 23 798 38 864 5 087 10 944 78 693net carrying amount at December 31, 2009 23 463 36 407 3 645 16 011 79 526

Othertangiblefixedassetsmainlyincludeassetsunderconstruction.Therearenotangiblefixedassetssubjecttotitlerestrictions.

Depreciationexpenseforintangibleassetswasrecognizedinprofitandlossinthelineitems“Costof salesandservices,”“Salesandmarketingexpenses,”“Generalandadministrativeexpenses,”“Researchanddevelopmentexpenses,”and“Otheroperatingexpenses.”

AsindicatedinNote7.1,animpairmenttestwascarriedoutinrespectof thenon-currentassetsatDecember31,2008andDecember31,2009toverifythatthecarryingamountsof tangiblefixedassets,intangibleassets,andgoodwillwerejustifiedbytherecoverableamounts.ThekeyassumptionsusedtocalculatevalueinuseareindicatedinNote7.1.Noimpairmentwasrecognizedin2008or2009.


9. lease arrangements

10. Investments accounted for using the equity method

IBAholdsthefollowingassetsunderfinanceleasecontracts:

(EUR ‘000) land and buildingsPlant, machinery, and

equipmentfurniture, fixtures, and

vehicles

12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009Grosscarryingvalue 7325 7325 26236 25752 41 41Accumulateddepreciation 3628 3799 14037 15787 10 18net carrying value 3 697 3 526 12 199 9 965 31 23

Detailsof leasepaymentsonfinanceliabilitiesrelatingtoleasedassetsaresetoutinNote18.2.Theseamountsareincludedinintangiblefixedassets.

(EUR ‘000) December 31, 2008 December 31, 2009

Investmentsaccountedforusingtheequitymethod 3643 5097

Otherinvestments 2420 2377

ToTAl 6 063 7 474

“Otherinvestments”consistof sharesinunlistedcompanies.Thesesharesarerevaluedusingeitherthediscountedcashflowmethodoronthebasisof thesharevalueassignedtothemduringthemostrecentroundsof financing.

10.1 Movements in equity-accounted investments Equity-accountedcompaniesarelistedinNote5.2.


At January 1 6 038 3 643

Sharein(loss)/profitof equity-accountedinvestments -2363 812

Additions 0 672

Othermovements -32 -30

At December 31 3 643 5 097

InJanuary2009,IBAacquireda20.2percentstakeintheSwisscompanySwanIsotopenAG.


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AtDecember31,2009,outstandingbalanceswithequity-accountedcompaniestotaledEUR2.7millionforlong-termassetsandEUR0.3millionforamountsowedtocustomersoncontractsinprogress.

10.2 Jointly controlled companiesIn2006,IBAformedajointventurenamedStribaGmbHwithStrabagProjektenwicklungGmbH(Germany).Thisjoint-venturewillprovideaprotontherapysystemandrelatedmedicaltechnologytotheUniversitätsklinikumEssen(North-Rhine,Westphalia,Germany).Theassetsandliabilitiesof thisjointventure(consolidatedusingtheequitymethod)areasfollows:


AssetsNon-currentassets 0 0Currentassets 80368 92997

ToTAl 80 368 92 997

liabilities

Non-currentliabilities 0 0

Currentliabilities 80348 92976

ToTAl 80 348 92 976

net assets 20 21

Revenue 849 949

Expense/(income) 848 948

Result after tax 1 1

TheGroup’sholdingsinitsprincipalassociates,allof whichareunlisted,areasfollows:

(EUR ‘000)Country of

incorporation Assets liabilities Revenue Profit/(loss) % Interest

2008MolyPharma Spain 10174 5952 10686 574 24.5%PharmalogicPetServicesof MontrealCie.

Canada 2956 2626 4111 100 48.0%

PetLinqL.L.C. USA 306 680 1276 -355 40.0%RadioIsotopeMéditerranée Morocco 5374 4342 0 -145 25.0%StribaGmbh Germany 80368 80348 849 1 50.0%ScetiMedicalLaboKK(1) Japan 4571 4330 1332 -79 39.8%

2009MolyPharma Spain 12122 6687 12541 1205 24.5%PharmalogicPetServicesof MontrealCie.

Canada 3402 1818 5306 1150 48.0%

PetLinqL.L.C. USA 340 694 1280 -67 40.0%RadioIsotopeMéditerranée Morocco 4719 4407 0 -820 25.0%StribaGmbh Germany 92997 92976 949 1 50.0%ScetiMedicalLaboKK Japan 4430 3873 6616 341 39.8%SwanIsotopenAG Switzerland 4446 1749 1 -390 20.2%

(1) Fiscal year ends September 30. Figures are at December 31, 2008 (three months of operations).


11. Deferred taxes(EUR ‘000) December 31, 2008 December 31, 2009

Deferred tax assets-Deferredtaxassettoberecoveredaftermorethan12months 28682 24573-Deferredtaxassettoberecoveredwithin12months 5304 7159

ToTAl 33 986 31 732

Deferred tax liabilities-Deferredtaxliabilitiestobepaidaftermorethan12months 286 659

-Deferredtaxliabilitiestobepaidwithin12months 184 345

ToTAl 470 1 004

net deferred tax assets 33 516 30 728

(EUR ‘000)

Deferred tax assetsAt January 1, 2008 33 312Credited/(charged)totheincomestatement -6552

Acquisitionof companies 7063

Currencytranslationdifference 163

At December 31, 2008 33 986

Credited/(charged)totheincomestatement -2090


Currencytranslationdifference -164

At December 31, 2009 31 732

(EUR ‘000)

Deferred tax liabilities

At January 1, 2008 369

(Credited)/chargedtotheincomestatement 17



At December 31, 2008 470

(Credited)/chargedtotheincomestatement 524



At December 31, 2009 1 004

Deferredincometaxassetsarerecognizedastaxlosscarry-forwardstotheextentthatitislikelytheycanberecoveredthroughfutureearnings.Note3explainstheestimatesandjudgmentsusedbyIBAinmakingthisassessment.

AtDecember31,2009,deferredtaxesof EUR61.3million(EUR19.7millionin2008)werenotrecognizedasassetsonthebalancesheet.Taxlossesandtemporarydifferencesdonothaveexpirationdates.


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Workinprogressrelatestoproductionof inventoryforwhichacustomerhasnotyetbeensecured,whilecontractsinprogressrelatetoproductionforspecificcustomersinperformanceof asignedcontract.


Rawmaterialsandsupplies 27278 31581

Finishedproducts 8568 6437

Workinprogress 24032 18442

Contractsinprogress 31882 46706

Write-off oninventoriesandcontractsinprogress -6001 -6155

Inventories and contracts in progress 85 759 97 011

Contracts in progress

Coststodateandrecognizedprofit 160490 135565

Less:progressbillings -128608 -88859

Contracts in progress 31 882 46 706

Netamountsduetocustomersforcontractsinprogress(Note23) 26759 28933

12. other long-term assets

13. Inventories and contracts in progress


Long-termreceivablesoncontractsinprogress 29097 39591Receivablesondisposalof subsidiaries 81 0Available-for-salefinancialassets 28525 32192Long-termreceivablesfordecommissioningof sites 1418 1395Otherassets 5990 6915ToTAl 65 111 80 093

TheFrenchsubsidiaryCISBioInternationalSAShasheldnuclearoperatorstatussinceDecember2008andassuchisrequiredtosetasiderestrictedassetsforthefuturedecommissioningandrestorationof thenuclearmedicinefacilitiesatthesiteinSaclay,France.AtDecember31,2009,theseassets,shownin“Available-for-salefinancialassets,”cametoEUR32.2million.

Thecaption“Long-termreceivablesfordecommissioningof sites”includesdepositsof EUR1.4millionheldinblockedaccountsintheU.S.inordertomeetlegalobligationsincertainStates(IllinoisandCalifornia).

Long-termliabilitiesarisingfromcontractsinprogressincludedownpaymentsof EUR39.6million(EUR29.1millioninDecember2008)onprotontherapycontractsforwhichthecorrespondingreceivableamountsdonotqualifyforderecognition.

AtDecember31,2009,“Otherassets”consistedprimarilyof EUR3.4millioninreceivableswithassociatedcompanies,EUR1.5millioninadvancesforthedevelopmentof newlabeledmolecules,andamountsinvestedinstructuredproductswithrepaymenthorizonsof morethan12months.AtDecember31,2008,“Otherassets”consistedprimarilyof EUR3.0inreceivableswithassociatedcompaniesandamountsinvestedinstructuredproductswithrepaymenthorizonsof morethan12months.


14.1 Trade receivablesTradeaccountsreceivablearedetailedasfollows:

14. Trade and other receivables


Amountsinvoicedtocustomersoncontractsinprogressbutforwhichpaymenthasnotyetbeenreceivedatbalancesheetdate

1580 1794

Othertradereceivables 82121 74139

Impairmentof doubtfulreceivables(-) -8881 -5755

ToTAl 74 820 70 178

AtDecember31,2009,receivablesof EUR0.9millionweregivenascollateral(EUR4.4millionin2008).

AtDecember31,therepaymentschedulefortradereceivables(excludingimpairments)wasasfollows:

(EUR ‘000) ToTAl not due <30 days 30 – 59 60 – 89 90-179 180-269 270-360 > 1 year

2008 83 701 38931 19475 6721 5136 4027 2939 1090 5382

2009 75 933 24510 17523 6917 3473 4183 4492 5097 9738

AtDecember31,2009,tradereceivableimpairmentstotaledEUR5.8million.

Changesintheprovisionfordoubtfuldebtsforthepasttwoyearsareasfollows:

(EUR ‘000)

At January 1, 2008 2 628

Entrytoconsolidation 5456

Chargefortheyear 1535

Utilizations 0

Write-backs -812


At December 31, 2008 8 881

Chargefortheyear 2113

Utilizations -3593

Write-backs -1607

Currencytranslationdifference -39

At December 31, 2009 5 755

14.2 other receivablesOtherreceivablesonthebalancesheetprimarilyinvolveadvancepaymentsonorders,deferredcharges,andaccruedincome.

Otherreceivablesaredetailedasfollows:


Non-tradereceivablesandadvancepayments 31877 17414

Deferredcharges 4225 4046

Accruedincome–interest 770 2455

Othercurrentreceivables 5469 2954

ToTAl 42 341 26 869


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Cash 24290 12512

Restrictedcash 64 142

Short-termbankdepositsandcommercialpaper 29589 4932

ToTAl 53 943 17 586

AtDecember31,2009,theeffectiveinterestrateonthecashpositionwas2.16percent(4.2percentin2008).Short-termdepositsandcommercialpaperhaveanaveragematurityof lessthan30days.

TheBoardof Directorsapprovedasecondaryequityofferingof EUR9.4millionatitsmeetingof June23,2008inthecontextof thepurchaseof IRE's80.1percentinterestinRadiopharmaPartnersSA.

AtDecember31,2009,59.34percentof IBA’sstockwastradingonEuronext.Fulldetailsof theGroup’sshareholdersaresetoutinthesection“Thestockmarketandshareholders”onpage122of thisannualreport.

WhiletheGroupwillnotdistributedividendsfor2009thisyear,itsdividenddistributionpolicyremainsunchanged,anditintendstoresumedistributionassoonaspossible.

In2009,adividendof EUR2.2million(EUR0.08pershare)wasdistributedon2008earnings.

16.2 Stock options and share-based paymentsGroupemployeesandmanagementcanpurchaseorobtainIBAstockthroughvariousstockoptionandstockplans.Optionstrikepricesaresetatthemarketpriceof theunderlyingstockonthedateof grant.Inthecaseof thestockplans,thebenefitawardediseitherthemarketvalueof thestockatthegrantdateoradiscountof 16.67percentonthevalueof thestockatthegrantdate.Stockownershipvestsirrevocablyonthedateof grant.However,stockmustbeheldforthreeyearsfollowinggrant.Inthecaseof stockoptionplans,thefairvalueof thebenefitawardedismeasuredusingaBlack&Scholesmodel,asdescribedbelow.Thebenefitgrantedisrecognizedasanemployeeexpense,andtheshare-basedpaymentreserveisincreasedaccordingly.

DuringtheperiodendedDecember31,2009,IBAhadeightstockoptionplans,includinganewplaninstitutedin2009.

15. Cash and cash equivalents

16. Capital stock and share-based plans

16.1 Capital stocknumber of

sharesCapital stock

(EUR ‘000)Capital surplus

(EUR ‘000)Treasury shares

(EUR ‘000)Total

(EUR ‘000)

Balance at January 1, 2008 25 800 252 36 215 115 199 -6 746 144 668Stockoptionsexercised 218234 306 523 829Defraymentof lossbyreductionof capitalsurplus

544611 764 8636 9 400

Purchaseof treasuryshares -817 -817Balance at December 31, 2008 26 563 097 37 285 124 358 -7 563 154 080Stockoptionsexercised 34220 48 103 151Secondaryequityoffering 121838 172 327 499Purchaseof treasuryshares -1952 -1 952Balance at December 31, 2009 26 719 155 37 505 124 788 -9 515 152 778


Thestockoptionplanssetupin2000and2001havethefollowingvestingscheme:25percentvestingatgrantdate+1year,50percentatgrantdate+2years,75percentatgrantdate+3years,100percentatgrantdate+4years.

Stockoptionplansinstitutedfrom2002onwardshavethefollowingvestingscheme:20percentvestingatgrantdate+1year,40percentatgrantdate+2years,60percentatgrantdate+3years,80percentatgrantdate+4years,100percentatgrantdate+5years.

In2005,theGrouprefundedacapitalsurplusof EUR3.1persharetoitsshareholders.Following

thisaction,onMarch13,2006,IBA’sBoardof DirectorsapprovedareductionintheexercisepriceforIBAemployeestockoptionplansinstitutedin2000,2001,2002,and2004.UnderIFRS2,thisrepricingqualifiesasamodificationof thetermsof optionsgrantedunderthe2000,2001,2002,and2004plans.Thischangehadanimpactof EUR0.2milliononthe2008financialstatementsandEUR0.04milliononthe2009financialstatements.

Detailsof theplansinstitutedinthecourseof 2009and2008aregivenbelow.


Typeofplan Stockoption StockoptionDateofgrant 11/30/2008 11/30/2009Numberof optionsgranted 111903 435771

Exerciseprice 14.18 8.26

Sharepriceatdateof grant 8.74 9.17

Contractuallife(years) 6 6

Settlement Stock Stock

Expectedvolatility 36.66% 40.00%

Expectedoptionlifeatgrantdate(years) 4.75 4.75

Risk-freeinterestrate 3.27% 2.46%

Expecteddividend(statedas%of sharepriceatgrantdate) 1% 1%

Expecteddeparturesatgrantdate 3.5% 3.5%

Fairvaluepergrantedoptionatgrantdate 1.60 3.78

Valuationmodel Black&Scholes Black&Scholes


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TheCompanyusestheBlack&Scholesmodeltopriceoptions,withnovestingconditionsotherthantime.Expectedvolatilityforthestockoptionplansisbasedonhistoricalvolatilitydeterminedbystatisticalanalysisof dailysharepricemovements.

Thefairvalueof sharesforthestockoptionsplanswasbasedontheaveragesharepriceforthe30daysprecedingthegrantdate.

AtDecember31,2009,achargeof EUR1.8millionwasrecognizedinthepre-taxfinancialstatementsforemployeestockoptions.

ThestockoptionsoutstandingatDecember31,2009havethefollowingexpirationdatesandexerciseprices.ChangessinceDecember31,2008areduetotheextensionof thestockoptionplans(seeNote3)andthenew2009stockoptionplan.


Expiration date Exercise price (EUR)number of stock

options Exercise price (EUR)number of stock

options

February28,2009 24.90 167148 - -September30,2010 3.72 689300 3.72 374620December31,2010 12.60 123625 12.60 123625

September30,2011 6.37 90000 6.37 40913

August31,2012 3.34 316457 3.34 316337

September30,2012 13.64 437250 13.64 331408

September30,2013 19.94 338246 19.94 257025

September30,2013 - - 3.72 289580

September30,2014 14.18 111903 14.18 111903

September30,2014 - - 6.37 40087

September30,2015 - - 13.64 105842

September30,2015 - - 8.26 435771

September30,2016 - - 19.94 81221

ToTAl outstanding stock options circulation 2 273 929 2 508 332

Stockoptionmovementscanbesummarizedasfollows:


Expiration date

Average exercise price in EUR per

sharenumber of stock

options

Average exercise price in EUR per

sharenumber of stock

options

OutstandingatJanuary1 9.85 2380260 10.65 2273929Granted 14.18 111903 8.26 435771Forfeited(-) 24.90 -167148

Exercised(-) 3.80 -218234 4.42 -34220

Lapsed(-)

outstanding at December 31 10.65 2 273 929 9.37 2 508 332

Exercisable at December 31 1 259 444 1 402 407


AccordingtotheBelgianCodeof CompanyLaw,thelegalreservemustequalatleast10percentof theCompany’scapitalstock.Untilsuchtimeasthislevelisattained,atopsliceof atleastone-twentiethof thenetprofitfortheyear(determinedaccordingtoBelgianaccountinglaw)mustbeallocatedtobuildingthisreservefund.

Thehedgingreserveincludeschangesinthefairvalueof financialinstrumentsusedtohedgecashflowsof futuretransactions.

Otherreservesinvolvethefairvalueadjustmentof available-for-saleinvestments,thevaluationof employeestockoptionplansandshare-basedemployeepayments,andactuarialgainsandlossesondefinedbenefitplans.

Cumulativetranslationdifferenceincludesdifferencesrelatedtothetranslationof financialstatementsof consolidatedentitieswhosefunctionalcurrencyisnottheeuro.Italsoincludes

foreignexchangedifferencesarisingonlong-termloansthatarepartof theGroup’snetinvestmentinforeignoperations.

In2009,after-taxprofitsof 1.95millionontheretranslationof theseloanswerereclassifiedtoequityinordertooffsetgainorlossarisingonthetranslationof netinvestmentinsubsidiaries.

AtDecember31,2009,thefollowingintersubsidiaryloansweredesignatedasnetGroupinvestmentsinforeignoperations:➤IBASAloantoIBAUSAInc.:USD2.33million➤IBASAloantoIBAMolecularNorthAmericaInc:

EUR3.4million➤IBASAloanstoIBAMolecularUKlimited:

EUR1.8millionandGBP2.6million➤IBAPharmaSAloantoIBAMolecularUK

Limited:EUR11.95million➤IBAMolecularHoldingSAloantoIBAMolecular

UKLimited:EUR1.2million

17. Reserves

18. Borrowings


Hedgingreserves 689 1755Otherreserves 8531 14322Currencytranslationdifference -17064 -16377

Retainedearnings 5446 -9117


non-CURREnTBankborrowings(Note18.1) 6295 3155Otherborrowings(Note18.3) 2 0

Financialleaseliabilities(Note18.2) 5588 3217

ToTAl 11 885 6 372

CURREnT

Short-termbankloans 10921 23656

Bankborrowings(Note18.1) 3561 2428

Otherborrowings(Note18.3) 6455 267

Financialleaseliabilities(Note18.2) 3314 1924

ToTAl 24 252 28 275


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18.1 Bank borrowings


Non-current 6295 3155Current 3561 2428

ToTAl 9 856 5 583

Changesinbankborrowingsareasfollows:(EUR ‘000) December 31, 2008 December 31, 2009

opening amount 10 953 9 856Newborrowings 503 172Repaymentof borrowings -3397 -4468Entrytoconsolidation 1714 0Exitfromconsolidation 0 0Currencytranslationdifference 83 23Closing amount 9 856 5 583

Thematuritiesof bankborrowingsaredetailedasfollows:(EUR ‘000) December 31, 2008 December 31, 2009

Oneyearorless 3562 2428Between1and2years 2996 2861Between2and5years 3298 294Over5years 0 0

ToTAl 9 856 5 583

Theeffectiveinterestratesforbankborrowingsatthebalancesheetdatewereasfollows:


EUR USD EUR USDBankborrowings 5,97% 7,07% 5,22% 6,33%

Thecarryingamountsof theGroup’sborrowingsaredenominatedinthefollowingcurrencies:


EUR 8030 4530USD 1826 1053

9 856 5 583

Unutilizedcreditfacilitiesareasfollows:


floATInG RATE-Expiringwithinoneyear 0 0-Expiringbeyondoneyear 40918 77970fIxED RATE-Expiringwithinoneyear 0 0

ToTAl 40 918 77 970

Thefacilitiesexpiringwithinoneyearareannualfacilitiessubjecttoreviewatvariousdatesduringthe12monthsfollowingtheendof thefiscalyear.Theotherfacilitieshavebeenarrangedtohelptofinancetheproposedexpansionof theGroup’sactivities.


18.2 financial lease liabilitiesChangesinfinancialleaseliabilitiesareasfollows:


opening amount 9 174 8 902Newborrowings 660 117Repaymentof borrowings -4050 -3990Entrytoconsolidation 2884 0Exitfromconsolidation 0 0Currencytranslationdifference 234 112Closing amount 8 902 5 141

Minimumleasepaymentsonfinanceleaseliabilitiesareasfollows:


Oneyearorless 3853 2151Fromonetofiveyears 5009 2997Overfiveyears 1202 690

10 064 5 838

Futurefinancechargesonfinancialleases(-) -1162 -697

Present value of finance lease liabilities 8 902 5 141

Thepresentvalueof financeleaseliabilitiesisasfollows:


Oneyearorless 3390 1924Fromonetofiveyears 4431 2574Overfiveyears 1081 643ToTAl 8 902 5 141

Thecarryingamountsof financeleaseliabilitiesaredenominatedinthefollowingcurrencies:


EUR 4634 3773RMB 77 3USD 4191 1365

8 902 5 141

TheaverageinterestratepaidonfinanceleaseliabilitiesatDecember31,2009was4.51percent(6.91percentin2008).

18.3 other payablesAtDecember31,2008,otherpayablesprimarilyinvolvedanIndustrialDevelopmentRevenueBondissuedbytheTownof Islip,Newyork,onbehalf of oneof theUSentitiesbelongingtotheIBAGroup.ThisbondwasrepaidinJanuary2009.


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19. Provisions

Environment Warranties litigation

Defined employee

benefits

other employee

benefits other Total

At January 1, 2008 2 835 1 453 3 501 0 750 3 774 12 313Additions(+) 10344 413 367 1416 150 388 13078Write-backs(-) -3878 -164 -1484 -4795 -102 -774 -11197Utilizations(-) -1310 -737 0 -209 -164 -1409 -3829Actuarial(gains)andlossesfortheperiod

0 0 0 323 0 0 323

Reclassifications 0 0 0 0 -99 3 -96Changesinconsolidationscope

45510 0 21 23234 1114 19045 88924

Currencytranslationdifference

40 -17 -24 0 0 30 29

Total movement 50 706 -505 -1 120 19 969 899 17 283 87 232At December 31, 2008 53 541 948 2 381 19 969 1 649 21 057 99 545

Environment Warranties litigation

Defined employee

benefits

other employee

benefits other Total

At January 1, 2009 53 541 948 2 381 19 969 1 649 21 057 99 545*Additions(+) 2633 1010 530 2152 202 6698 13225Write-backs(-) 0 -177 -1508 0 -25 -3031 -4741Utilizations(-) -1699 -785 -555 -517 -472 -6067 -10095Actuarial(gains)andlossesfortheperiod

0 0 0 -1123 0 0 -1123

Reclassifications 0 0 -40 0 0 40 0Changesinconsolidationscope

0 0 0 0 0 292 292

Currencytranslationdifference

-18 15 78 0 0 -9 66

Total movement 916 63 -1 495 512 -295 -2 077 -2 376At December 31, 2009 54 457 1 011 886 20 481 1 354 18 980 97 169

(*) The consolidated financial position at December 31, 2008 has been adjusted to reflect the final purchase price allocation for CIS Bio International SAS and its subsidiaries. This adjustment had an impact of EUR 1.2 million on other provisions.

19.1 EnvironmentProvisionsfordecommissioningcostsrelatedtotheGroupsiteswhereradiopharmaceuticalagentsareproducedhavebeenrecognizedwhereanobligationexiststoincurthesecosts.Thiscaptionalsoincludesprovisionsforobligationsinconnectionwithdisposingof usedradioactivesourcesandequipment.Theseprovisionsaremeasuredatthenetpresentvalueof thebestestimateof thecoststhatwillneedtobeincurred.Formoreinformationontheseprovisions,seeNote3of thisreport.

19.2 WarrantiesProvisionsforwarrantiescoverwarrantiesformachinessoldtocustomers.

19.3 litigationProvisionsforlitigationatDecember31,2009involvelabor-relateddisputesforwhichEUR0.9millionhadbeensetasideatDecember31,2009.

19.4 Provisions for employee benefitsProvisionsforemployeebenefitsatDecember31,2009wereprimarilyforthefollowing:➤Obligationsof EUR8.0millionincurredby

CISBioInternationalSASforentitlementsof employeesactiveatyear-end,intheformof benefits,supplements,andotherretirementcompensationnotcoveredbythepensionorinsurancefunds(lump-sumretirementpayments,knownasIDRs).


20. other long-term liabilities

➤Obligationsof EUR12.5millionincurredbyCISBioInternationalSASforentitlementsarisingfromtheloweringof theretirementageforemployeesworkingorhavingworkedinhazardareas(CEAGeneralInstructionNote119).

19.5 otherOtherprovisionsatDecember31,2009consistedprimarilyof thefollowing:➤EUR6.8millionforobligationsincurredby

CISBioInternationalSASuponformalization

of arestructuringplan(priortojoiningtheIBAGroup).

➤EUR4.9millionforobligationsrelatingtothetreatmentof productionwastesanddisposalof equipment.

➤EUR1.6millionforcommitmentsmadeonacquisitionof ScheringAG'sFDGbusinessin2006.

➤EUR4.1millionduetorevaluationof theGroup'sR&Dportfolio.


Advancesreceivedfromlocalgovernment 16305 13791Liabilitiestoshareholders 0 0Other 29210 39622Deferredpaymentsonacquisitions 0 0

ToTAl 45 515 53 413

In2009,theGroupreceivedEUR0.1millionininterest-freecashadvancesfromtheWalloonRegionof BelgiumandrepaidEUR1.3million.Italsoreclassifiedadvancesof EUR1.47tootherlong-termliabilities.

In2008,theGroupreceivedEUR1.2millionininterest-freecashadvancesfromtheWalloonRegionof Belgium.

AtDecember31,2009,otherlong-termliabilitiesincludedownpaymentsof EUR39.6million(EUR29.1millioninDecember2008)receivedonprotontherapycontractsforwhichthecorrespondingreceivableamountsdonotqualifyforderecognition.


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21. other short-term financial assets and liabilities(EUR ‘000) December 31, 2008 December 31, 2009

HEDGE-ACCoUnTED fInAnCIAl InSTRUMEnTS-Forwardforeignexchangecontracts 1839 1930-Foreignexchangeoptions 172 6

-Interestratecaps 497

InSTRUMEnTS RECoGnIzED AT fAIR VAlUE

-Forwardforeignexchangecontracts 38 95

-Foreignexchangerateswaps 198 13

-Foreignexchangeoptions 28 40

-Interestrateswaps 9

Short-term financial assets 2 275 2 591

HEDGE-ACCoUnTED fInAnCIAl InSTRUMEnTS

-Forwardforeignexchangecontracts 29

-Foreignexchangerateswaps 158 21

-Interestrateswaps 398

-Oilfuturescontracts 1051 54

InSTRUMEnTS RECoGnIzED AT fAIR VAlUE

-Forwardforeignexchangecontracts 891

Short-term financial liabilities 2 498 103

TheGroup’spolicyonuseof financialinstrumentsisdetailedinNote1.22onGroupaccountingpoliciesandNote2onfinancialriskmanagement.

AtDecember31,2009,anamountof EUR2.6millionrecognizedasashort-termfinancialassetrepresentedEUR2.4millionincashflowhedginginstrumentsandEUR0.2millioninhedginginstrumentsrecognizedatfairvaluethroughprofitandloss.

AtDecember31,2008,anamountof EUR2.3millionrecognizedasashort-termfinancialassetrepresentedEUR2.0millionincashflowhedginginstrumentsandEUR0.3millioninhedginginstrumentsrecognizedatfairvaluethroughprofitandloss.

AtDecember31,2009,anamountof EUR0.1millionrecognizedasashort-termfinancialliabilityrepresentedhedginginstrumentsaccountedforatfairvaluethroughprofitandloss.

AtDecember31,2008,anamountof EUR2.5millionrecognizedasashort-termfinancialliabilityrepresentedEUR0.9millionincashflowhedginginstrumentsandEUR1.6million

inhedginginstrumentsrecognizedatfairvaluethroughprofitandloss.

Someof thesefinancialinstrumentsaredesignatedashedginginstrumentsinasmuchastheyhedgespecificexchangerateriskstowhichtheGroupisexposed.Hedgeaccountinghasbeenappliedtothesecontractsbecausetheyaredeemedtobeeffectivehedges.Forthesecashflowhedges,movementsarerecognizeddirectlyinequityandreleasedtotheincomestatementtooffsettheincomestatementimpactof theunderlyingtransactions.Acumulativeprofitof EUR1.8millionwascrediteddirectlytoequity(inthe“Hedgingreserves”caption)atDecember31,2009.AtDecember31,2008,thiscumulativeprofittotaledEUR0.7million.


22. Trade payables

23. other payables

AtDecember31,thepaymentschedulefortradepayableswasasfollows:

Total (‘000) Due< 3

months4-12

months1-5

years> 5

years

2008 71 518 11875 55857 3786 0 0

2009 48 264 14597 31868 1799 0 0


Amountsduetocustomersoncontractsinprogress(oradvancesreceivedoncontractsinprogress)

26759 28933

Socialsecurityliabilities 18818 17066

Accruedcharges 42323 30694

Accruedinterestcharges 94 80

Deferredincome 2157 3042

Capitalgrants 1019 834

Non-tradepayables 1567 3068

Other 7967 14986

other payables 100 704 98 703

In2008,accruedchargesincreasedbyEUR38.8millionasaconsequenceof theabsorptionof CISBioInternationalSAS.Mostof this(EUR20million)wasforworkrequiredtobringthesiteatSaclay,France,intocompliancewithsafetyandpharmaceuticalstandards.In2009,accruedchargesdeclinedasaresultof atotalof EUR9.5millionformodernizationworkcarriedoutontheSaclayfacility.

24. other operating expenses and income

24.1 other operating expensesLesautreschargesd'exploitationpeuventêtredétailléescommesuit:


Legalcosts 0 345

Costof share-basedpayments 2052 1845

Depreciationandimpairment 9480 2423

Amortizationof revaluationtofairvalueof assetsonthebalancesheetof CISBioInternationalSAS

5851 3079

Revaluationof R&Dportfolio 0 9140

Other 1488 2055

ToTAl 18 871 18 887

AtDecember31,2009,the“depreciationandimpairment”captionincludesdepreciationof theradiopharmaceuticalbusiness(EUR2.4million).

AtDecember31,2008,depreciationandimpairmentincludedanimpairmentof athird-partyinvestment(EUR3.7million)anddepreciationondecommissioningassetsrelatingtotheradiopharmaceuticalbusiness(EUR5.4million).


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25. financial expenses and income

25.1 financial expenses


Interestpaidondebts 1945 2386

Foreignexchangedifferences 3444 3636

Changesinfairvalueof derivatives 2266 1393

Other 5929 4575

ToTAl 13 584 11 990

24.2 other operating incomeOtheroperatingincomecanbebrokendownasfollows:(EUR ‘000) December 31, 2008 December 31, 2009

Reversalof provisionsforlegalcosts(seeNote29) -1484 -1438

Reversalof provisionsforpost-employmentbenefits(seeNote27.2) -4795 0

Reversalof provisionsforotheremployeebenefits -103 -953

Reversalof depreciationandimpairment -2226 0

CEAcontributiontorestrictedassets -14050 0

Gainsonsaleof fixedassets -1679 0

Earn-outonsaleof aCISBioInternationalSASsubsidiary 0 -2123

Other -893 -3839

ToTAl -25 230 -8 353

In2009,thecaption“Other”primarilyincludesdischargeof theKingCheersdebt(EUR3.0million)byreversalof animpairmentprovisionforaloanonIBA’sbooks.

In2008,thecaption“Reversalof depreciationandimpairment"primarilyincludedthereversalof awrite-downtakenduringapriorperiodonareceivableof EUR2.2millionwithanassociatedundertaking.

InDecember2008,theFrenchsubsidiaryCISBioInternationalSASobtainednuclearoperatorstatus,whichwilleventuallymakeitmandatorytosetasiderestrictedassetstocoverthefuturerestorationanddecommissioningof thenuclearfacilitiesatthesiteinSaclay,France.Inthiscontext,CISBioInternationalSASsignedamemorandumof agreementwiththeCEA(Commissariatàl’EnergieAtomique,AtomicEnergyCommission),apublicinstitutionorganizedunderFrenchlawonwhosesitethenuclearfacilitiesof CISBioInternationalSAShadpreviouslybeenlocated.TheCEAagreedtopaymonetarycompensationof EUR14.05milliontodefinitivelyextinguishitsobligationtocontributetothefuturecostsof restoringanddecommissioningthenuclearfacilitiesof CISBioInternationalSAS.

In2008,theGroupalsosoldtheassetsattworadiopharmaceuticalproductionfacilitiesintheUnitedStates,whichgeneratedgainsof EUR1.7million.


26. Income taxes

Thetaxchargefortheyearcanbebrokendownasfollows:


Currenttaxes 212 1446

Deferredtaxes 6569 3306

ToTAl 6 781 4 752

ThetaxchargeonIBA’sresultbeforetaxesdiffersfromthetheoreticalamountthatwouldhaveresultedfromapplicationof theaverageapplicabletaxratestotheprofitsof theconsolidatedcompanies.

25.2 financial income


Interestreceivedonreceivablesandcash -2616 -2680

Foreignexchangedifferences -5728 -2630

Changesinfairvalueof derivatives -611 -1249

Other -1992 -306

ToTAl -10 947 -6 865

AtDecember31,2009,thecaption“Other”mainlyincludestheimpactof revaluationof financialassetstofairvaluethroughprofitandloss(EUR0.16million).

AtDecember31,2008,thecaption“Other”mainlyreflectedtheimpactof revaluationtofairvalueof anoptionallowingtheGrouptoincreaseitspercentageownershipinCISBioInternationalSASandsubsidiaries(EUR1.35million).

AtDecember31,2009,thecaption“Other”mainlyincludescostof thediscountingof definedbenefitplans(EUR1.1million),aswellasexpensesfromtherevaluationof decommissioningprovisions(EUR1.62million)andotherprovisions(EUR0.5million).

AtDecember31,2008,thecaption“Other”mainlyreflectedtheimpactof revaluationof financialassetstofairvaluethroughprofitandloss(EUR2.26million)(seeNote2.2),thecostof discountingdefinedbenefitretirementplans(EUR0.7million),andexpensesrelatedtothediscountingof decommissioningprovisions(EUR1.97million.)


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27.1 Defined contribution plansAtDecember31,2009,theGrouprecognizedexpensesof EUR0.9millionfordefinedcontributionplans(EUR0.6millionatDecember31,2008).

27.2 Defined benefit plansIBArecordsprovisionsforthedefinedbenefitplansof itssubsidiaryCISBioInternationalSAS.

Changesinthepresentvalueof definedbenefitobligationsarepresentedasfollows:(EUR ‘000) December 31, 2008

Defined benefit obligations at May 31, 2008 23 234

Costof servicesrenderedfortheperiod 694

Costof discounting 722

Plantermination -4795*

Benefitspaid -209

Actuarial(gains)andlossesfortheperiod 323

Defined benefit obligations at December 31, 2008 19 969

(EUR ‘000) December 31, 2009

Defined benefit obligations at January 1, 2009 19 969

Costof servicesrenderedfortheperiod 1061

Costof discounting 1091

Plantermination 0*

Benefitspaid -517

Actuarial(gains)andlossesfortheperiod -1123

Defined benefit obligations at December 31, 2009 20 481

(*) The impact of plan termination was recorded in “Other operating income” (see Note 24.2).

27. Employee benefits

Theanalysisisasfollows:(EUR ‘000) December 31, 2008 December 31, 2009

Resultbeforetax 12110 -7541

Taxes calculated on the basis of national tax rates 4 251 -2 692

Unrecognizeddeferredtaxes 5053 4680

Tax-exempttransactions 2482 2196

Prioryearadjustmentsondeferredtaxes 0 81

Write-downof previouslyrecognizeddeferredtaxassets 2177 3047

Lossavailableforoffsetagainstfuturetaxableincome 0 -1476

Utilizationof previouslyrecognizedtaxlosses -5240 -1597

Localtaxexpenseeliminatedinconsolidation -1101 123

Othertax(income)/expenses -841 390

Reported tax charge 6 781 4 752

Theoretical tax rate 35.1% 35.7%

Effective tax rate 56.0% -63.0%

Giventheavailabletaxlosses,IBAdidnotcalculatedeferredtaxesonitemscreditedorchargeddirectlytoequity.


AtDecember31,2009,thecaption“Othernon-cashitems”includesexpensesinconnectionwithemployeestockoptionplansandstockplans(+EUR1.8million);inventorylossesandwrite-downs,includingtheresultsof reversingassetrevaluationsduringfairvaluerevaluationof thebalancesheetof CISBioInternationalSAS(+EUR2.3million);thenon-cashimpactof dischargingtheloanwithKingCheers(+EUR3.0million),andtheimpactof includingunrealizedforeignexchangedifferencesontherevaluationof theGroup’sintercompanybalancesheetpositions(+EUR0.2million).

AtDecember31,2009,“Othercashflowsfrominvestingactivities”primarilyincludesinvestmentsmadetobringthesiteatSaclay,France,intocompliancewithsafetyandpharmaceuticalstandards(–EUR9.5million)andinvestmentsinthecontextof anexclusivecollaborationagreementtocommercializeAposense[18-F]-ML-10(–EUR1.5million).

AtDecember31,2009,“Othercashflowsfromfinancingactivities”includegrantsandinterest-freecashadvancesfromtheWalloonRegionof

Belgium(EUR0.4million),repaymentof grantsandadvancesfromtheWalloonRegionof Belgium(–EUR1.5),repaymentof cashcredits(–EUR0.3million),andchangesinliabilitiestowardsGroupemployeesinconnectionwiththeexerciseof stockoptionplans(EUR0.3million).

AtDecember31,2008,thecaption“Othernon-cashitems”includedexpensesinconnectionwithemployeestockoptionplans(EUR2.1million);inventorylossesandwrite-downs,includingtheresultsof reversingassetrevaluationsduringfairvaluerevaluationof thebalancesheetof CISBioInternationalSAS(EUR5.4million);actuarialgainsandlossesonemployeebenefits(–EUR0.3million);theimpactof revaluationsandgainsonthesaleof fixedassets(–EUR2.4million);andtheimpactof includingunrealizedforeignexchangedifferencesontherevaluationof theintercompanybalancesheetpositionsof theGroup(–EUR1.8million).

AtDecember31,2008,“Othercashflowsfrominvestingactivities”includedinvestmentsmadetobringthesiteatSaclay,France,intocompliancewithsafetyandpharmaceuticalstandards.

28. Cash flow statement

Definedbenefitplanexpensesrecognizedthroughprofitandlosscanbebrokendownasfollows:


Costof servicesrenderedfortheperiod 694 1061

Costof discounting 722 1091

Expenses/(income) for the period 1 416 2 152

Definedbenefitplanexpensesaccountedforthroughprofitandlossareincludedinthefollowingincomestatementcaptions:


Generalandadministrativeexpenses 694 1061

Financialexpenses,other 722 1091

Expenses/(income) for the period 1 416 2 152

Theprincipalactuarialassumptionsatthedateof closingaresummarizedin3(e)above.


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29. Contingent liabilities

TheGroupiscurrentlyinvolvedincertainlegalproceedings.Thepotentialrisksconnectedwiththeseproceedingsaredeemedtobeinsignificantorunquantifiableor,wherepotentialdamagesarequantifiable,adequatelycoveredbyprovisions.Developmentsinlitigationpendingattheendof2008aswellastheprincipalcasespendingatDecember31,2009arepresentedinthisNote.

Developments in old litigation pending at December 31, 2009litigation settled since the 2008 annual report➤Tax litigation in Sweden

TheCompanybecameinvolvedinataxdisputewiththeSwedishNationalTaxBoard.ThecaseinvolvedinterestpaidbytheIBAGroupfromBelgiumtoanIBAGroupcompanyinSwedenfrom1999to2001.TaxhadbeenwithheldinBelgium,andtheincomehadbeenreleasedtothetaxableincomeoftheSwedishsubsidiary.Thecasewassettledinfavorof theIBAGroupduringthefirstsemesterof 2009.Theprovisionof SEK12.9million(EUR1.2million)previouslysetasidehasthereforebeenreversed.

➤Action for damages against IBA Molecular north America Inc In2005,IBAMolecularNorthAmericatookoverthreeFDGproductionfacilitiesfromthePharmalogiccompany.Oneofitsfacilitieswasinvolvedinasuitfordamages.APharmalogicdriverhadusedhisvehiclewithoutauthorizationoutsideworkinghours.Hecommittedatheftand,whilefleeing,causedanaccidentinvolvingapolicevehicleandinjuredapoliceofficer.Thecasewenttojurytrial.OnFebruary19,2008,thecourtfoundPharmalogicnegligentinhiringthedriverandentrustinghimwithavehicle.Rather

surprisingly,thisnegligencewasdeemedasubstantialcauseoftheinjurytothepoliceoffer,anddamagesofUSD3millionwereawardedforwhichPharmalogicisresponsible.Pharmalogicwasorderedtopaythisamount.In2008,actingonaposttrialmotion,theCourtreducedthedamageamounttoUSD2.3million.IBAwasablelatertoobtaincompensationfromPharmalogic’spreviousinsurersfortheamountuptoUSD500000andtheamountinexcessofUSD1million.Subsequenttotheendofthesecondquarterof 2009,thepartiesnegotiatedasettlementprovidingforalump-sumpaymentof USD1200000inprincipal,interest,andcostsandleavingIBAwithamaximumliabilityof USD700000.ThecasewasofficiallysettledonJuly24,2009.Theprovisionof USD1millionsetasidein2008wasreducedtoUSD0.7milliononJune30,2009.IBAiscontinuingitseffortstoobtainadditionalcompensationfromPharmalogic’spreviousinsurers.

Developments in old litigation still pending at December 31, 2009➤litigation with Bayer Schering Pharma AG

IBAandScheringAG(nowBayerScheringPharmaAG)disagreedontheamountof thenetcashflowpositionwhenthesaleofCISBioInternationalwasmade.BayerScheringPharmaAGdemandedapaymentof EUR0.3million.ThedisputewassubmittedforarbitrationtoKPMGFrance,whichsidedwithIBA.Despitethisdecision,BayerScheringPharmaAGisstill

AtDecember31,2008,“Othercashflowsfromfinancingactivities”includedgrantsandinterest-freecashadvancesfromtheWalloonRegionof Belgium(EUR1.6million),repaymentof aloantoSchering

(–EUR1.5million),andchangesinliabilitiestowardsGroupemployeesinconnectionwiththeexerciseof stockoptionplans(–EUR0.9million).


demandingpaymentof thisamount.However,therearenoproceedingspending.

Additionally,thepartiesareinvolvedinadisputerevolvingaroundthetakeoverof theJapaneseoperations,inwhichBayerScheringPharmaAGmaintainsthatIBAandIREhavenotcompliedwiththeirbesteffortobligation..BayerScheringPharmaAGhassubmittedacounterclaimintheaforementionedarbitrationproceedingsdemandingpaymentof JPy180076111andEUR200000inseverancecompensationfortheemployeesinquestion.IBAconsidersthatithasfullycompliedwithitsbesteffortobligationandcontendsthat,if only20ofthe38employeesjoinedIBA,itwasforreasonsattributableexclusivelytoBayerScheringPharmaAG.Inthecontextof theacquisitionofCISBioInternationalSA,thepartiesagreedthatBayerScheringPharmaAGwouldpayanadditionalEUR4millionintheeventthatCISBIOobtainedINB(BasicNuclearFacility)designationbeforeDecember31,2008.AFrenchdecreeof December15,2008conferredINBstatusonCISBIO,andBayerScheringPharmaAGwasaskedfortheEUR4million.BayerScheringPharmaAGrefusedtopayonthepretextthatthelawallowstheuseofmeansotherthancashtoestablishtheguaranteeandthatitscontractualcommitmentappliedonlyinthecaseofamandatorycashreserve.IBAbelievesthatBayerScheringPharmaAGhasnobasisforitspositionandhasinstitutedarbitrationproceedingsforpaymentthroughAFA(AssociationFrançaised’Arbitrage,FrenchArbitrationAssociation).Theseproceedingsarestillpending,andnodecisionisexpectedbeforetheendof2010.

new litigation in 2009➤Invalidation of Skandion’s call for tenders for a

proton therapy system in Uppsala, Sweden Skandionissuedacallfortenderstosupplyandinstallof acompleteprotontherapyfacilityinUppsala,Sweden,underaturnkeycontract.Thecompetitionwasconductedunderthenegotiatedprocedure.OnAugust19,2009,theJointAuthority

awardedthecontracttotheGermancompanyVarianMedicalSystemsParticleTherapy,locatedinVarian,Germany.

OnDecember9,2009,inresponsetoaclaimbyIBA,theUppsalaCountyAdministrativeCourtissuedadecisiondeclaringthecallfortendersvoidonsixcounts:i)VarianDenmark’stendershouldhavebeen

rejectedatthepre-tenderqualificationstageandshouldnothavequalifiedforfurtherevaluation.

(ii)AwardingthecontracttoVarianGermanywhenthetenderwassubmittedbyVarianDenmarkwasaviolationofthelaw.

(iii)Skandionhadviolatedtheprincipleof transparencyinconcludingtheIBAhadnotmettherequirementsdesignatedasmandatoryunder“EvaluationofTechnicalRequirements.”

(iv)Ithadalsoviolatedtheprincipleof transparencyinconcludingthatIBAhadnotmetthemandatoryrequirementsforpracticalandtechnicalusertraining.IBA’somissionsonthispointwereexaggeratedbythislackof transparency.

(v)Skandionhadviolatedtheprincipleofequaltreatmentwithrespectbothtothepre-qualificationoftenderersandtotheevaluationoftendersduringthecompetitionprocess.

(vi)Itwasnotpossibleforallof thetendererstoanticipatehowSkandionwouldassessorevaluatethetenders.Thetenderdocuments,theevaluationofthetenders,andtheevaluationmethodweresounclearastoviolatetherequirementsoftransparency.

Skandionhasnotappealedthisdecision.ItissuedanewcallfortendersonFebruary26,2010.

➤Arbitration against Westdeutsches Protonentherapiezentrum Essen GmbH InNovember2009,STRIBAProtonentherapiezentrumGmbH,ajointventureinwhichIBAholdsa50percentshare,initiatedarbitrationagainstWestdeutschesProtonentherapiezentrumEssenGmbH(“WPE”)todetermine,inthecontextof thepublicprivate


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partnership,theexactextentof Striba’scontractualobligationstosupplyaprotontherapyfacilitytoEssen,Germany,underturnkeycontract.

WPEdisputesthequalityof thepatientmanagementsoftwareproposedbyIBA.WPEconsidersthatitisentitledtorequestdeliveryof asystemcurrentlyindevelopmentforcontinuoustreatmentof mobiletumors.IBAhasrefusedtohonorthisrequestinthecontextof thepublic

privatepartnershipbutremainsopentoresearchcollaborationinthisarea.GivenWPE’sinsistenceonhavingthissystemincludedinthepublicprivatepartnership,IBAinitiatedarbitrationproceedingsinordertoobtainconfirmationthatthesystemproposedbyIBAfollowedtherulesof theartandcompliedwiththeformalrequirementsspecificationwithregardtobothmobiletumortreatmentandtreatmentspeed,andthatWPEwasnotentitledtoreducethefeeowedtoStriba.

30.1 operating leasesTheGrouphasanumberof non-cancelableoperatingleasesrelatingtovehicle,equipment,andofficespacerental.Totalfutureminimumleasepaymentsundernon-cancelableoperatingleasesareasfollows:


Oneyearorless 6029 4873

Fromonetofiveyears 11402 9953

Overfiveyears 6820 12378

ToTAl 24 251 27 204

Totaloperatingleasepaymentsincludedintheincomestatementin2009amountedtoEUR7.3million(EUR5.1millionin2008).

30.2 financial guaranteesIBAheldfinancialguaranteesforEUR135.8millionatDecember31,2009(EUR90millionatDecember31,2008)givenbyGroupentitiesassecurityfordebtsorcommitments.Of thisamount,EUR10.3millioncoverguaranteesgivenbytheparentcompanytocoveritssubsidiaries’financialleaseliabilitiesandbankborrowingsandEUR50millionrelatetothefinancinggivenbytheEIBtoIBAforitsresearchanddevelopmentprojectsintheareasof cancerdiagnosisandtreatment.Thisguaranteeiscontingentondrawingsonthelineof creditgrantedtoIBA.


31.1 Consolidated companiesAlistof subsidiariesandequity-accountedcompaniesisprovidedinNote5.

31.2 Shareholder relationshipsThefollowingtableshowsIBAshareholdersatDecember31,2009:

(EUR ‘000) number of shares %

BelgianAnchorage 7773132 29.09%

IRE(InstitutdesRadioéléments) 1423271 5.33%

Sopartec 529925 1.98%

UCL 426885 1.60%

IBAInvestmentsSCRL* 635530 2.38%

IonBeamApplicationsSA* 75637 0.28%

Public 15854775 59.34%

ToTAl 26 719 155 100%

* At December 31, 2009, IBA held a total of 75,637 of its own shares and 635,530 through the company IBA Investments SCRL, a wholly owned indirect subsidiary.

IBA'sdominantshareholders—BelgianAnchorage,BelgianLeverage,UCL,Sopartec,andIRE—havedeclaredthattheyareactingjointlyandhaveenteredintoanagreementwhichexpiresin2013.InlateDecember2007,BelgianLeveragetransferredallof itsstockinIBAtoitsparent,BelgianAnchorage.Theaboveshareholders’agreementgoverns,interalia,thesharingof informationandpreferentialrightstopurchaseIBAstock.Thepartiestothisagreementheld10153213sharesof ordinarystockatDecember31,2009,representing38percentof Company’svotingrights.

Underthetermsof thisagreement,intheeventof anewIBAstockoffering,if oneof thedominantshareholdersdoesnotexerciseitspreferentialsubscriptionright,thisrightwillpasstotheotherdominantshareholders,withBelgianAnchorageS.A.havingfirstrightof purchase.If apartytotheshareholders’agreementwishestosellitssharesof IBAstock,theotherpartiestotheagreementwillhaveapreemptiverighttoacquirethisstock,withBelgianAnchorageS.A.havingfirstrightof purchase.

Thispreemptiverightissubjecttocertainexceptions.Inparticular,itdoesnotapplyinthe

caseof atransferof stocktoBelgianAnchorageSA.

InanagreementsignedFebruary19,2008,IREgrantedIBAacalloptiononitsentireinterestinRadiopharmaPartners(80.1percent)andScetiMedicalLaboKK(19.9percent).Thiscalloptionwasconditionalonreceiptof noticefromIBAof compliancewithFrenchregulationsapplicabletoCISBIOregardingthenotificationof employees.Shoulditexercisethisoption,IBAwouldpaytheagreedpriceinacombinationof cashandIBAshares.Withoutprejudicetotherightsandobligationsarisingunderothershareholderagreements,IREagreedtoholdthesesharesforfiveyears,tograntIBAapreemptiverighttopurchasethisstock,andtocontinuetostrivetomaintaintheBelgianmooringof IBA'sshareholders.

OnMay29,2008,IBAexercisedthiscalloptiontopurchaseIRE's80.1percentinterestinRadiopharmaPartnersand19.9percentinterestinScetiMedicalLaboKK.TheapproximatelyEUR20millionpriceof thetransactionwaspaidhalf incashandhalf inIBASAstockinordertofurtherstrengthenthehistoricpartnershiprelationshipbetweenIBAandIRE,oneof itsfoundingshareholders.Thecashpaymentwill

31. Related party transactions


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provideventurecapitaltofundprojectsusefulforthejointdevelopmentof IRE,CISBioInternationalSAS,andIBA.IBAandIREhavealsoagreedtodevelopdifferentcollaborativeprojectsinwhichsynergiescanbeoptimizedbypoolingexpertiseandscientific,technical,andcommercialresources.

31.3 Directors and managementAsindicatedinthecorporatecharter(the“Charter”),theCompanydoesnotwishtoprovidespecificinformationonindividualcompensation.Itbelievesthatinformationof thiskinddoesnotofferaddedvaluetotheshareholdersandispotentiallyharmfultotheCompany.However,communicationof informationoncompensationpolicyisimportantforshareholdersandisdetailedintheCharter.Actualcompensationin2009isdescribedbelow.

31.3.1 DirectorsFixedcompensationpaidtomembersof theBoardof Directorsforservicesrenderedin2009totaledEUR108500.Managingdirectorswerenotcompensatedforattendingmeetingsof theBoardof Directors.Non-managingdirectorsdidnotreceiveanycompensationorotherdirectorindirectbenefitfromtheCompanyoranyotherentitybelongingtotheGroupfortheirservices.

However,withtheexceptionof NicoleDestexhe,PeterVermeeren,andJean-JacquesVerdickt(J.J.VerdicktSPRL),allof thedirectorswereincludedasbeneficiariesof the2009stockoptionplan.Becausethenumberof optionsinvolvedisquitesmall,theCompanybelievesthatgrantingtheseoptionsdoesnotinterferewiththejudgmentof therecipientdirectors.

TheCompanyconsidersthattheamountof compensationorotherbenefitsgivendirectlyorindirectlytoindividualdirectorsbytheCompanyoranyotherentityintheGroupisnotrelevanttothisreport.

31.3.2 Chief Executive officer, managing directors, and Management TeamTheBoardiscarefultoensurethatthemanagingdirectorsandtheManagementTeamarecompensatedfordirectandindirectservicestotheCompanyinamannerconsistentwithmarketpracticesbasedonlevelof responsibility,servicesrendered,andnatureof duties.

AsindicatedintheCharter,fixedandvariablecompensationof themanagingdirectorsisdeterminedbytheCompensationCommitteeinaccordancewithprinciplesapprovedbytheBoard.Fixedandvariablecompensationof theManagementTeamisreviewedanddeterminedbytheChief ExecutiveOfficer.IthasbeenreportedtotheCompensationCommitteeandtheBoardof Directorsanddiscussedbyboth.Theprincipleof launchingof a2009stockoptionplanandthetotalnumberof optionstobeissuedwereapprovedbytheBoardof Directors.TheCompensationCommitteeidentifiedthebeneficiariesof thestockoptionsanddeterminedthenumberof stockoptionstobegrantedtoeachof them.

ThetotalamountpaidbytheCompanyandallotherentitiesintheGroupincompensationfordutiesexercisedandservicesrendereddirectlyorindirectlybythetwomanagingdirectorsandtheninemembersof theManagementTeamcametoapproximatelyEUR3.9millionin2009:aroundEUR2.9millionforfixedcompensationandaroundEUR1millionforvariablecompensation.Theseamountsarealwaysstatedascosttothecompany.NotethatfixedcompensationincludesaGroupcontributionof EUR0.1milliontoadefinedcontributionplan.

TheCompanyconsidersthattheamountof compensationorotherbenefitsgivendirectlyorindirectlytotheChief ExecutiveOfficerbytheCompanyoranyotherentityintheGroupisnotrelevanttothisreport.


AtDecember31,2009,allof thedirectorstogetherheld1508059sharesof IBAstockdirectly(including1423271sharesheldbyIRE).

Atthesamedate,thenon-managingdirectorsstillheld:➤600IBAstockoptionsgrantedunderthe2001

stockoptionplan➤600IBAstockoptionsgrantedunderthe2002

stockoptionplan➤15000IBAstockoptionsgrantedunderthe

2006stockoptionplan➤6000IBAstockoptionsgrantedunderthe2007



stockoptionplan

AtDecember31,2009,membersof theManagementTeam,includingthemanagingdirectors,heldatotalof 890052stockoptionsdistributedasfollows:➤50000optionsgrantedunderthe2001stock

optionplanatthestrikepriceof EUR12.60➤255500optionsgrantedunderthe2002stock







optionplanatthestrikepriceof EUR8.26

TheCompanybelievesthat(i)thenumberof shares,stockoptions,oranyotheroptionpurchaserightsgrantedtotheCEOoranyothermembersof executivemanagementduringthecourseof theyearand(ii)theprincipalcontractprovisionsregardingthehiringordepartureof executivemanagersarenotrelevanttothisreport.


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34. net earnings per share

32. fees for services rendered by the statutory auditors

33. Events after the balance sheet date

OnFebruary19,2010,IBAissuedapressreleaseconfirmingthatithadreceivedanadditionalorderforasecondtreatmentroomfromitsItaliancustomerATreP(AgenziaProvincialePerlaProtonterapia).

OnFebruary23,2010,IBAannouncedthatProCureTreatmentCenters,Inc.hadchosenittosupplyaprotontherapysystemtotheProCureProtonTherapyCenterinSomerset,NewJersey,

USA.Thisprotontherapysystemwillincludefourtreatmentrooms–acombinationof inclinedbeamandfixedbeamtreatmentroomsandisocentricrotatinggantrytreatmentrooms–withthelatestpatientpositioningoptionsandIBA’sUniversalNozzle,whichallowspencilbeamscanning.Thiscontractalsoincludesalong-termserviceandmaintenanceagreement.Thecentershouldopenfortreatmentin2012.

Ernst&youngReviseursd’EntreprisesSCRL,auditorsof thestatutoryaccountsof IBASAandauditorsof theconsolidatedaccountsof IBA,providedthefollowingservicesduringtheyear:


Remunerationforstatutoryauditsandauditof consolidatedaccounts 643 543

Tax-relatedservices 7 57

Otherservices 26 57

ToTAl 676 657

34.1 Basic earningsBasicearningspersharearecalculatedbydividingthenetprofitattributabletoCompanyshareholdersbytheweightedaveragenumberof ordinarysharesoutstandingduringtheperiod.Theweightedaveragenumberof ordinarysharesexcludessharespurchasedbytheCompanyandheldastreasuryshares.

BASIC EARnInGS PER SHARE December 31, 2008 December 31, 2009

Weightedaveragenumberof ordinaryshares 26264308 26077237

Earningsattributabletoparentequityholders(EUR‘000) 5300 -12492

Basic earnings per share from continuing and discontinued operations (EUR per share)

0.20 -0.48

Earningsfromcontinuingoperationsattributabletoparentequityholders(EUR‘000)

5300 -12492


Basic earnings per share from continuing operations (EUR per share) 0.20 -0.48

Earningsfromdiscontinuedoperationsattributabletoparentequityholders(EUR‘000)

0 0


Basic earnings per share from discontinued operations (EUR per share) 0.00 0.00


34.2 Diluted earningsDilutedearningspersharearecalculatedbyadjustingtheweightedaveragenumberof ordinarysharesoutstandingfortheeffectsof conversionof alldilutivepotentialordinaryshares.TheCompanyhasonlyonecategoryof dilutivepotentialordinaryshares:stockoptions.

Thecalculationisperformedforthestockoptionstodeterminethenumberof sharesthatcouldhavebeenacquiredatfairvalue(determinedastheaverageannualmarketsharepriceof theCompany’sshares)basedonthemonetaryvalueof thesubscriptionrightsattachedtooutstandingstockoptions.Thenumberof sharescalculatedasaboveiscomparedwiththenumberof sharesthatwouldhavebeenissuedassumingtheexerciseof thestockoptions.

DIlUTED EARnInGS PER SHARE December 31, 2008 December 31, 2009


Weightedaveragenumberof stockoptions 1656632 1061537

Averagesharepriceoverperiod 14.03 7.21

Dilutioneffectfromweightednumberof stockoptions 821762 500918

Weightedaveragenumberof ordinarysharesfordilutedearningspershare 27086070 26578155

Earningsattributabletoequityholdersof theparent(EUR‘000) 5300 -12492

Diluted earnings per share from continuing and discontinued operations (EUR per share)

0.20 -0.47

Earningsfromcontinuingoperationsattributabletoequityholdersof theparent(EUR‘000)

5300 -12492

Diluted earnings per share from continuing operations (EUR per share) 0.20 -0.47

Earningsfromdiscontinuedoperationsattributabletoparentequityholders(EUR‘000)

0 0

Diluted earnings per share from discontinued operations (EUR per share) 0.00 0.00


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Auditor's report on the consolidated financial statements



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PursuanttotheRoyalDecreeof November14,2007,IBAdeclaresthatthisannualstatementwaspreparedbyPierreMottet,Chief ExecutiveOfficer(CEO),andJean-MarcBothy,Chief FinancialOfficer(CFO),whodeclarethat,totheirknowledge:➤Theconsolidatedstatementsfor2009havebeenpreparedinaccordancewithapplicableaccounting

standardsandaccuratelyreflecttheassets,financialposition,andresultsof IBAandtheundertakingsincludedintheconsolidation;

➤Themanagementreportgivesatrueandfairviewof thebusinesssituation,theearnings,andthepositionof IBAandtheundertakingsincludedintheconsolidation,aswellasadescriptionof theprincipalrisksanduncertaintiesfacingthem.



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IBA S.A. annual financial statements


ASSETS (EUR ‘000) 2007 2008 2009

fIxED ASSETS 193 876 242 820 150 941

formation expenses 0 4 2

Intangible fixed assets 801 1 201 1 711

Tangible fixed assets 6 368 7 287 5 902

Landandbuildings 879 1070 909

Plant,machineryandequipment 107 367 249

Furnitureandvehicles 1251 1088 622

Leasesandsimilarrights 3889 3714 3563

Assetsunderconstructionandadvancepayments 242 1048 559

financial assets 186 707 234 328 143 326

Affiliatedcompanies 185614 232556 141552

Othercompanies 0 0 0

Otherfinancialassets 1093 1771 1774

CURREnT ASSETS 276 022 444 522 558 974

Accounts receivable after one year 344 297 47

Inventories and contracts in progress 190 898 339 775 401 849

Inventories 10980 24810 22113

Contractsinprogress 179918 314966 379736

Amounts receivable within one year 50 787 71 359 153 108

Tradedebtors 46705 61709 44183

Otheramountsreceivable 4082 9650 108925

Investments 3 000 25 654 1 596

Cash at bank and in hand 29 817 6 855 282

Deferred charges and accrued income 1 176 583 2 092

ToTAl ASSETS 469 898 687 342 709 915

Inaccordancewitharticle105of theBelgianCodeof CompanyLaw,thefollowingstatementsrepresentacondensedversionof theannualfinancialstatements.Thefulltextisavailableonrequestfromtheheadquartersof theCompanyandwillbefiledwiththeNationalBankof Belgium.Thiscondensedversiondoesnotcontainallof theappendicesorthereportof theauditor,whoexpressedanunqualifiedopinion.


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lIABIlITIES AnD EQUITY (EUR ‘000) 2007 2008 2009

SHAREHolDERS’ EQUITY 152 780 167 961 157 526Capital 36 215 37 285 37 505Additional paid-in capital 115 198 124 358 124 788Reserves 989 1 329 2 019Legalreserve 786 1126 1126Reservesnotavailablefordistribution 689Untaxedreserves 203 203 203Retained earnings 217 4 558 -7 030Capital grants 161 430 245PRoVISIonS AnD DEfERRED TAxES 1 940 1 371 5 064CREDIToRS 315 178 518 009 547 325Amounts payable after one year 142 937 190 183 189 347Financialdebts 2126 1757 1390Advancesreceivedoncontractsinprogress 88375 78981 141532Otheramountspayable 52436 109445 46426Amounts payable within one year 171 074 324 859 356 577Currentportionof amountspayableafteroneyear 4337 3710 57641Financialdebts 10000 23000Tradedebts 44933 62026 34298Advancesreceivedoncontractsinprogress 102229 230601 224162Currenttaxandpayrollliabilities 4092 4203 4086Otheramountspayable 15483 14319 13390Accrued charges and deferred income 1 167 2 968 1 401ToTAl lIABIlITIES 469 898 687 342 709 915

InCoME STATEMEnT (EUR ‘000) 2007 2008 2009

operating income 112 102 183 445 136 626operating expenses (-) -112 649 -185 127 -143 430Rawmaterials,consumables,andgoodsforresale -54104 -95724 -47150Servicesandothergoods -28686 -45826 -46043Salaries,socialsecurity,andpensions -20309 -25476 -28029Depreciationandwrite-offsonfixedassets -8954 -16203 -15097Increase/(decrease)inwrite-downsoninventories,workinprogressandtradedebtors

973 -808 -1448

Provisionsforliabilitiesandcharges 1840 569 -3692Otheroperatingexpenses -3409 -1658 -1971operating Profit/(loss) - 547 -1 682 -6 804financial income 4 998 25 724 9 136Incomefromfinancialassets 0 11500 1790Incomefromcurrentassets 2353 4574 3667Otherfinancialincome 2645 9651 3678financial expenses (-) -5 313 -13 578 -9 055Interestexpense -1490 -4375 -4680Amountswrittenoff oncurrentassetsotherthaninventories,workinprogressandtradedebtors-increase(decrease)

0 -2271 163

Otherfinancialcharges -3823 -6933 -4538Profit/(loss) on ordinary activities before taxes - 862 10 464 -6 723Extraordinary income (+) 5 735 17 3 000Gainonsaleof fixedassets 5735 0 0Otherextraordinaryincome 0 17 3000Extraordinary expenses (-) - 1 -3 675 -7 165Extraordinarydepreciationandwrite-offsonfixedassetsAmountswrittenoff financialfixedassets 0 -3653 0Otherextraordinaryexpenses -1 -21 -7165Profit/(loss) for the period before taxes 4 872 6 807 -10 888Incometaxes(-)(+) 0 0 -10Profit for the period (+) 4 872 6 807 -10 899Transfer to tax free reserves (-)Profit/(loss) for the period available for appropriation 4 872 6 807 -10 899


APPRoPRIATIon of RESUlTS (EUR ’000) 2007 2008 2009

loss to be appropriated (-) -82 564 7 024 -6 340Profitfortheperiodavailableforappropriation 4872 6807 -10899Losscarriedforward(-) -87436 217 4558Transfers to capital and reserves 87 436 0 0Transferfromcapitalandsharepremiumaccount 87436 0 0TransferfromreservesAppropriations to capital and reserves 244 341 689AppropriationtocapitalandsharepremiumaccountAppropriationtolegalreserve 244 341 0Appropriationtootherreserves 689Profit/(loss) to be carried forward 217 4 558 -7 030

Profit to distribute 4 412 2 125 0Dividends 4412 2125 0

STATEMEnT of CAPITAl (EUR ’000)

Amount (EUR '000)

number of shares

Capital1.Issuedcapital

At the end of the previous financial year 37 285Changesduringthefinancialyear 219 156058At the end of the financial year 37 505

2.Structureof thecapital2.1.Categoriesof shares

•Ordinaryshareswithoutdesignationof facevalue 20507 14734590•Ordinaryshareswithoutdesignationof facevaluewithVVPRstrip 16997 11984565

2.2.Registeredorbearershares•Registeredshares 9551367

•Bearershares 17167788 own shares held by

•TheCompanyitself 106 75637•Itssubsidiaries 892 635530

Share issue commitmentsFollowingexerciseof shareoptions

•Numberof outstandingshareoptions 2508332•Amountof capitaltobeissued 3520

Maximumnumberof sharestobeissued 2508332 Amount of non-issued authorized capital 23 291


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Corporate governance, management, and control


TheBoardof Directorsiscomposedof ninemembers.Thearticlesof incorporationandtheCharterrequireabalanceontheBoardof Directorsamongoutsidedirectors,insidedirectors,anddirectorsrepresentingtheshareholders.

TheBoardof Directorsmustalwaysbemadeupof atleastonethirdoutsidedirectorsandonethirddirectorsnominatedbythemanagingdirectors(“insidedirectors”).Thetwomanagingdirectors,whoareresponsiblefortheCompany’sday-to-daymanagement,arealsoconsideredinsidedirectors.

TheBoardof Directorsmeetswhenevernecessary,butaminimumof fourtimesayear.Themajortopicsof discussionincludemarketsituation,strategy(particularlyasconcernsacquisitionsduringtheperiod),technologicaldevelopments,financialdevelopments,andhumanresourcesmanagement.ReportsontopicsdealtwithatBoardmeetingsaresenttothedirectorsfirst,sothattheycanexercisetheirdutieswithafullknowledgeof thefacts.

TheBoardof Directorsmetseventimesin2009,eachtimeunderthechairmanshipof PeterVermeeren.Attendanceatmeetingsof theBoardwashigh.Alargemajorityof thedirectorsattendedallmeetings.Onlyeightabsenceswererecordedforallof themeetings,whichrepresentsanabsenteerateof approximately12.7percent.TheCompanybelievesthattheattendancerecordof individualdirectorsisnotpertinentinthecontextof thisreport.

Attheproposalof theNominatingCommittee,theOrdinaryGeneralMeetingof May13,2009approvedthereelectionof PierreScallietasanoutsidedirector,butinthecapacityof representativeandmanagerof PSLManagementConsultingSCS.ItalsoreelectedOlivierRalet,representingO.RaletBDMSPRL,asan“other”director.Bothof thesetermswillexpireatthe2012OrdinaryGeneralMeetingtoapprovethefinancialstatementsfor2011.

Thephilosophy,structure,andgeneralprinciplesof IBAcorporategovernancearepresentedintheCompany’sCorporateCharter(“Charter”).TheCharterisavailableontheCompany'swebsitewww.iba-worldwide.com.TheCompanyhasadoptedthe2009BelgianCodeof CorporateGovernanceasitsreferenceCode.

1. Board of Directors


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TheCompensationCommitteemetthreetimesin2009.Areportoneachof itsmeetingswassubmittedtotheBoard.Topicsof discussionincludedissuesrelatingtothe2008bonuses,determinationof beneficiariesof the2009stockoptionplanandthe2009employeeshareplan,directors’compensation,andcompensationschemesingeneral.Allof themembersattendedeachmeeting.

TheCompensationCommitteeiscomprisedof PeterVermeeren,JeanStéphenne(representingInnostéSA),andEricdeLamotte(representingBayrimeSA).ItischairedbyPeterVermeeren.PierreMottetisinvitedtoattendunlesstheCommitteeisdecidingoncompensationpolicyorothersubjectsaffectingthemanagingdirectors.

name AgeStart of

termEnd of

termDuties at

IBAPrimary duties

outside IBA

Pierre Mottet(1) 48 1998 OGM2011

Chief ExecutiveOfficerInsidedirector

ManagingdirectorNC

Memberof theExecutiveCommitteesof FEB(Federationof BelgianEnterprises)andAgoria

Wallonia;Directorof UWE(WalloonUnionof Companies)andseveralstartups

Yves Jongen(1) 62 1991 OGM2010

Chief ResearchOfficerInsidedirector

ManagingdirectorNC

Beforetheestablishmentof IBAin1986,Directorof theCyclotronResearchCenterof the

UniversitéCatholiquedeLouvain(UCL)

Eric de lamotte (1)

representing Bayrime S.A.

53 2000 OGM2011

Insidedirector

CC,NC,AC

Corporatedirector.FormerlyFinancialDirectorof IBA(1991-2000)

Peter Vermeeren(2) 69 2000 OGM2011

Chairmanof theBoardof Directors

OutsidedirectorCC,NC

FormerlyExecutiveVicePresidentof MallinckrodtandExecutiveVicePresidentof ADAC

Pierre Scalliet (2)

representingPSl ManagementConsulting SCS

57 2005 OGM2012

Outsidedirector Chief of Service,OncologicalRadiotherapyProfessorof ClinicalOncology,Université

CatholiquedeLouvain(UCL)

Jean Stephenne (2)

representingInnosté S.A.

59 2000 OGM2011

Outsidedirector

CC,NC

Since1998,PresidentandGeneralManagerof Glaxo-SmithKlineBiologicals,Belgium

Otheroffices:Memberof theBoardsof Directorsof BESIX,Fortis,GBL,andNanocy

Jean-Jacques Verdickt (2)

representingJ.J. Verdickt SPRl

65 2006 OGM2010

Outsidedirector

AC

Chairmanof TechspaceAero,ViceChairmanof theEurocleargroup,memberof theBoardsof

Directorsof AlcatelBell,theMagotteauxgroup,EuroclearBank,Logiver,BoneTherapeutics,and

UWE(WalloonUnionof Companies)

olivier Raletrepresenting olivier Ralet BDM SPRl

52 2000 OGM2012

Otherdirector

AC

Licentiateof LawMemberof theExecutiveCommitteeof Atenor

GroupSA,Belgium

nicole DestexherepresentingInstitut national desRadioéléments fUP

57 1991 OGM2010

Otherdirector FinancialDirectorof IRE

CC: Compensation Committee – NC: Nominating Committee – AC: Audit Committee(1) As defined in the Charter. (2) These directors were presented to the shareholders as outside candidates at the time of their election. However, other directors may also meet the

same independence criteria. During the course of the year, none of the outside directors ceased to meet the requirements for independence, which are reiterated in the Charter.

TheBoardof Directorswascomprisedof thefollowingninemembersatDecember31,2009:

2. Compensation Committee


3. nominating Committee

4. Audit Committee

TheNominatingCommitteemettwicein2009forthepurposeof analyzingtheareasof expertiseneededbytheBoardof Directorstofillexpiringdirectorshippositionsandof makingproposalsinthisregardtotheBoardof Directors.Basedonitsreport,inMay2009theBoardof Directorsproposedthereelectionof PierreScallietasanoutsidedirector,butinthecapacityof representativeandmanagerof PSLManagementConsultingSCS.ItalsoproposedthatOlivierRalet,representingO.RaletBDMSPRL,shouldbereelectedasan“other”director.

Allof themembersattendedeachmeeting.TheNominatingCommitteeconsistsof fivemembers,includingtheChairmanof theBoardof Directorsandaminimumof twooutsidedirectors.TheCompensationCommitteeiscomprisedof PeterVermeeren,JeanStéphenne(representingInnostéSA),andEricdeLamotte(representingBayrimeSA),togetherwithPierreMottetandyvesJongen.ItischairedbyPeterVermeeren.

TheAuditCommitteemetfourtimesin2009,includingthreetimesinthepresenceof theauditors.Areportoneachof itsmeetingswassubmittedtotheBoardof Directors.Themaintopicsweretheannualresultsfor2008andanalysisof theauditors’managementletter,analysisof themidyearresults,oversightof implementationof IFRSaccountingprinciples,examinationof the2010budget,andoversightof internalauditandriskmanagement.TheCompanyhascurrentlynospecificinternalauditfunction.However,aclosefollow-upandcontrolof therisksthattheCompanyhastocopewithisensuredthroughtheintermediaryof itsmanagementcontrollersactiveineachof the

Company'sdepartments.TherisksthusidentifiedarereportedtotheManagementTeamwhichsubmitsareporttotheAuditCommitteeandelaboratesanappropriatesolutiontogetherwiththeAuditCommitteeandthepersoninchargeof insurance.Allof themembersattendedeachmeeting.TheCommitteeiscurrentlycomprisedof threemembers:Jean-JacquesVerdickt(representativeandmanagerof J.J.VerdicktSPRL),OliverRalet(representativeandmanagerof OlivierRaletBMDSPRL),andEricdeLamotte(representativeandmanagingdirectorof BayrimeSA).ItischairedbyJean-JacquesVerdickt.


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5. Day-to-day and strategic management

Day-to-daymanagementandcorporateresponsibilityinsuchmattersisdelegatedtotwomanagingdirectors,currentlyPierreMottet,Chief ExecutiveOfficer,andyvesJongen,Chief ResearchOfficer.TheChief ExecutiveOfficerisspecificallyresponsibleforimplementingstrategyandforday-to-daymanagementandisassistedbyamanagementteamconsistingof certainmembersof thecorporateteamandthepresidentsof thebusinessunits.Together,theyconstitutetheGroup’sManagementTeam.

TheChief ExecutiveOfficer,accompaniedbytheChief FinancialOfficer,makesregularreportstotheBoardof Directors.TheBoardof DirectorsalsoaskedManagementTeammembersordivisionheadstoreporttotheBoardontwooccasions:adoptionof thestrategicplanandadoptionof the2010budget.

TheManagementTeamwascomprisedof thefollowingmembersonDecember31,2009:

name Title Age location

1. Pierre Mottet Chief ExecutiveOfficer 48 Louvain-la-Neuve,Belgium

2. Yves Jongen Chief ResearchOfficer 62 Louvain-la-Neuve,Belgium

3. Jean-Marc Bothy Chief FinancialOfficer 45 Louvain-la-Neuve,Belgium

4. Jean-Marie Ginion PresidentTechnologyGroup 60 Louvain-la-Neuve,Belgium

5. frank Uytterhaegen PresidentIBAChina 56 Beijing,China

6. Rob Plompen PresidentIBADosimetry 46 Schwarzenbruck,Germany

7. olivier legrain PresidentIBAMolecular 41 Saclay,France

8. Jean-Marc Andral PresidentIBAParticleTherapy 60 Louvain-la-Neuve,Belgium

9. Bernard Reculeau PresidentCISBIOBioassays 59 Saclay,France

10. Serge lamisse PresidentIBAIndustrial 46 Louvain-la-Neuve,Belgium

11. Didier Cloquet Chief of Staff 45 Louvain-la-Neuve,Belgium


7. Codes of conduct

6. Conflicts of interest

7.1 Code of ethical conductTheCompanyiscommittedtothehonest,ethical,andhonorableconductof itsbusiness.Itbelievesthatethicalmanagementisthelynchpinof itscontinuedgrowthandsuccess,willenableittomaintainitsgoodreputationandachieveits

strategicmissionof protecting,enhancing,andsavinglives.Forthisreason,ithasworkedtocreateacodeof ethicalconduct.Thiscodedefinesthefundamentalprinciplesof ethicalbusinessconductandprovidesguidancefortheGroup’semployeesandco-contractingpartiesonsuchmattersas

TheBoardmeetingof March3,2009,atwhichtheBoardwastoruleontheCompensationCommitteereport,gaverisetotheapplicationof theprocedurestipulatedinarticle523of theBelgianCodeof CompanyLawforcasesof directorconflictof interest.Thisconflictinvolvedthemanagingdirectorsastheheadsof managementcompaniesthatprovideservicestoIBA.Afterdeliberation,theBoardunanimouslyadoptedtherecommendationsmadebytheCompensationCommitteeinitsreporttotheBoardregardingboththestrategicobjectivesassignedtothesemanagementcompaniesfor2009andthedeterminationof variablepay(pay-for-performance)for2009.Themanagingdirectorsweretheninformedof theBoard’sdecision.

TheBoardmeetingof April2,2009,whichwastoruleonapprovingtheemployeeshareplanforemployeesof IBASAanditsBelgiansubsidiaries,gaverisetotheapplicationof theprocedurestipulatedinarticle523of theBelgianCodeof CompanyLawforcasesof directorconflictof interest.Thisconflictinvolvedthemanagingdirectorsasbeneficiariesof thisplan.Afterdeliberation,theBoardunanimouslyapprovedthetermsof thestockpurchaseplanforemployeesof IBASAanditsBelgiansubsidiaries,aswellasthespecialreportpreparedbytheBoardinaccordancewitharticle596of theBelgianCodeof CompanyLaw.Themanagingdirectorsweretheninformedof theBoard’sdecision.

TheBoardmeetingof March13,2009,whichwastoruleonextendingthe2004,2005,2006,

and2007stockoptionplans,gaverisetotheapplicationof theprocedurestipulatedinarticle523of theBelgianCodeof CompanyLawforcasesof directorconflictof interest.Thisconflictof interestinvolvedallof thedirectorsasbeneficiariesof thisextension,withtheexceptionof theChairmanandtheChairmanof theAuditCommittee.Afterdeliberation,theBoardunanimouslyapprovedtheextensionof the2004,2005,2006,and2007stockoptionplans,asproposedbyManagement,aswellasthespecialreportspreparedbytheBoardinaccordancewitharticles583,596,and598of theBelgianCodeof CompanyLaw.

TheBoardmeetingof August28,2009,atwhichtheBoardwastoruleonlaunchingastockoptionplan,alsogaverisetotheapplicationof theprocedurestipulatedinarticle523of theBelgianCodeof CompanyLawforcasesof conflictof interestinvolvingdirectors.Thisconflictinvolvedallof themembersof theBoardasbeneficiariesof thisplan,withtheexceptionof NicoleDestexhe(InstitutNationaldesRadioéléments),PeterVermeeren,andJean-JacquesVerdickt(J.J.VerdicktSPRL),who,althougheligibletoparticipateinthisplan,didnotwishtobeincludedinthelistof beneficiaries.Afterdeliberation,theBoardunanimouslyapprovedthelaunchof astockoptionplanallowingforupto1000000options,aswellasthedraftof thespecialreportpreparedbytheBoardinaccordancewitharticles583,596,and598of theBelgianCodeof CompanyLaw.


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businesspartnerships,conflictsof interest,andconfidentiality.Allemployeeshavereadandapprovedthiscode.

7.2 Code of conduct to combat insider trading and market abuseTheCompanyhasimplementedacodeof conducttocombatinsidertradingandmarketabuse.Allemployeeshavereceivedacopyof thiscode.Furthermore,eachof thedirectorsandeachmemberof themanagementteamhavesignedandacknowledgedthecodeinhisorhermanagementcapacity.

In2009,theseindividualsexercised,intheircapacityof personholdingmanagementduties,atotalof 21000stockoptionsissuedunderthe2004stockoptionplan.

Tothebestof theCompany’sknowledge,therewerenoviolationsof thiscodeof conductin2009.

7.3 Code of conduct for contractual relationships between the Company (including its affiliated companies) and affiliated personsTheCompanyhasimplementedacodeof conductgoverningtransactionsandothercontractualrelationshipsbetweenIBAoritsaffiliatedcompaniesandpersonsaffiliatedwiththem.AtransactionwithanaffiliatedpersonisantransactionbetweentheCompanyoroneof itssubsidiariesand(a)amemberof theBoardof Directorsof IBASA,(b)amemberof theGroup’sManagementTeam,(c)apersonlivingunderthesameroof astheseindividuals,or(d)anenterpriseinwhichapersonreferredtoin(a),(b),or(c)holdssignificantvotingpower,whetherdirectlyorindirectly.Suchtransactionsmustbeconductedinaccordancewiththemarketpractice.Thiscodehasbeenreadandsignedbyallaffiliatedpersons.

8. Compensation policy - Stock and stock options

AsindicatedintheCharter,theCompanydoesnotwishtoprovidespecificinformationonindividualcompensationaslongasitisnotlegallycompelledtodoso.Itbelievesthatinformationof thiskinddoesnotofferaddedvaluetotheshareholdersandispotentiallyharmfultotheCompany.However,communicationof informationoncompensationpolicyisimportantforshareholdersandisdetailedintheCharter.Compensationactuallypaidin2009isdescribedbelow.

8.1. DirectorsDirectorsearnayearlyfixedfeeamountingtoEUR6000increasedbyEUR1000permeetingtheyactuallyattended(EUR2000fortheChairmanandEUR1500fortheChairmanof theAuditCommittee).Fixedcompensationpaidtomembersof theBoardof Directorsforservicesrenderedin2009totaledEUR108500.Managingdirectorswerenotcompensatedforattendingmeetingsof theBoardof Directors.Non-managingdirectorsdidnotreceiveanycompensationorotherdirect

orindirectbenefitfromtheCompanyoranyotherentitybelongingtotheGroupfortheirservices.However,withtheexceptionof NicoleDestexhe,PeterVermeeren,andJean-JacquesVerdickt(J.J.VerdicktSPRL),allof thedirectorswereincludedasbeneficiariesof the2009stockoptionplan.Becausethenumberof optionsinvolvedisquitesmall,theCompanybelievesthatgrantingtheseoptionsdoesnotinterferewiththejudgmentof therecipientdirectors.TheCompanyconsidersthattheamountof compensationorotherbenefitsgivendirectlyorindirectlytodirectorsbytheCompanyoranyotherentityintheGroupisnotrelevantto,andthereforenotmentionedin,thisreport.

8.2. Chief Executive officer, Managing Directors, and Management TeamTheBoardiscarefultoensurethatthemanagingdirectorsandtheManagementTeamarecompensatedfordirectandindirectservicestotheCompanyinamannerconsistentwithmarket


practicesandbasedonlevelof responsibility,servicesrendered,andnatureof duties.

AsindicatedintheCharter,fixedandvariablecompensationof themanagingdirectorsisdeterminedbytheCompensationCommitteeinaccordancewithprinciplesapprovedbytheBoard.Fixedandvariablecompensationof theManagementTeamisreviewedanddeterminedbytheChief ExecutiveOfficer.IthasbeenreportedtotheCompensationCommitteeandtheBoardof Directorsanddiscussedbyboth.Theprincipleof launchingof a2009stockoptionplanandthetotalnumberof optionstobeissuedwereapprovedbytheBoardof Directors.TheCompensationCommitteeidentifiedthebeneficiariesof thestockoptionsanddeterminedthenumberof stockoptionstobegrantedtoeachof them.

ThetotalamountpaidbytheCompanyandallotherentitiesintheGroupincompensationfordutiesexercisedandservicesrendereddirectlyorindirectlybythetwomanagingdirectorsandtheninemembersof theManagementTeamcametoapproximatelyEUR3.9millionin2009:aroundEUR2.9millionforfixedcompensationandaroundEUR1millionforvariablecompensation.Theseamountsarealwaysstatedascosttothecompany.NotethatfixedcompensationincludesaGroupcontributionof EUR0.1milliontoadefinedcontributionplan.TheCompanymentionsthatnovariablecompensationwillbepaidwithregardsto2009asthesetobjectiveshavenotbeenmet.

TheCompanyconsidersthattheamountof compensationorotherbenefitsgivendirectlyorindirectlytotheChief ExecutiveOfficerbytheCompanyoranyotherentityintheGroupisnotrelevantto,andthereforenotmentionedin,thisreport.

AsatDecember31,2009,allof thedirectorstogetherheld1508059sharesof IBAstockdirectly(including1423271sharesheldbyIRE).

Atthesamedate,thenon-managingdirectorsstillheld:➤600IBAstockoptionsgrantedunderthe2001


stockoptionplan➤15000IBAstockoptionsgrantedunderthe

2006stockoptionplan➤6000IBAstockoptionsgrantedunderthe2007



stockoptionplan

AsatDecember31,2009,membersof theManagementTeam,includingthemanagingdirectors,heldatotalof 890052stockoptionsdistributedasfollows:➤50000optionsgrantedunderthe2001stock








optionplanatthestrikepriceof EUR8.26

TheCompanybelievesthat(i)thenumberof shares,stockoptions,oranyotheroptionpurchaserightsgrantedtotheCEOoranyothermembersof executivemanagementduringthecourseof theyearand(ii)theprincipalcontractprovisionsregardingthehiringordepartureof executivemanagersarenotrelevantto,andthereforenotmentionedin,thisreport.Thecompanynoteshoweverthattheseprovisionsareinlinewiththemarketstandards.


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9. Relationship with reference shareholders

10. legislation governing takeover offers and transparency

IBA’sreferenceshareholders–i.e.BelgianAnchorageSCRL(of whichIBASAandIBAInvestmentsSCRLareaffiliatecompanies),UCLASBL,SopartecSA,andIREFUP-havedisclosedthattheyareactinginconcertandhaveenteredintoanagreementthatwillexpirein2013.Theaboveshareholders’agreementgoverns,interalia,thesharingof informationandpreferentialrightsonthesaleof IBAstock.Thepartiestothisagreementheld10153213sharesof commonstockatDecember31,2009(10864380withtheaffiliatecompaniesof BelgianAnchorageSCRL),representing38percentof Company’svotingrights(40.66percentwiththeaffiliatecompaniesof BelgianAnchorageSCRL).

Underthetermsof thisagreement,intheeventof anewIBAstockoffering,if oneof thedominant

shareholdersdoesnotexerciseitspreferentialsubscriptionright,thisrightwillpasstotheotherdominantshareholders,withBelgianAnchorageSAhavingfirstrightof purchase.If aparticipantintheshareholders’agreementwishestosellitssharesof IBAstock,theotherpartiestotheagreementwillhaveapreemptiverighttoacquirethisstock,withBelgianAnchorageSAhavingfirstrightof purchase.Thispreemptiverightissubjecttocertainexceptions.Inparticular,itdoesnotapplyinthecaseof atransferof stocktoBelgianAnchorageSA.

Tothebestof theCompany’sknowledge,therewerenootherrelationshipsorspecificagreementsamongtheshareholdersatDecember31,2009.

10.1 Disclosures required under transparency legislationInaccordancewiththeActof May2,2007onthedisclosureof significantholdingsinissuerswhosesecuritiesareadmittedtotradingonaregulatedmarketanditsimplementingroyaldecreeof February14,2008(botheffectiveSeptember1,2008),andonthebasisof article34of thearticlesof Incorporationof IBASA,IBA'sshareholdersarerequiredtoreporttheirholdingstotheCBFA(Belgium’sfinancialmarketregulator)andtoIBASAwhenevertheseholdingsreachathresholdof 3percent,5percent,ormultiplesof 5percent.IBASAdidnotreceiveanydisclosuresof thisnaturein2009.

10.2 Takeover legislation (transitional regime)Underarticle74of theTakeoverOfferActof April1,2007,singleorconcertedpartiesthatholdmorethan30percentof thevotingsharesof aBelgiancompanyadmittedtotradingonaregulatedmarketasof September1,2007arenot

boundbytheobligationtomakeatakeoverofferforthestockof saidcompany,subjecttocertainconditions,includinghavingnotifiedtheCBFAinaccordancewiththeapplicableregulationandbytheprescribeddeadlines.

Inconnectionwiththeabove,IBASAacknowledgedreceiptonOctober26,2009of notificationthattheinitialdisclosuresof theindicatedcompanieshadbeenupdatedasfollows:“Asof October1,2009:➤“Belgian Anchorage SA, whose registered office

is located at Avenue Charles Madoux 13-15, 1160 Brussels (enterprise number VAT BE 0466.382.136, RLP Brussels), continues to hold 7 773 132 IBA shares, or 29.11 percent of the capital at this date.

➤“IBA Investments SCRL, whose registered office is located at 3 Chemin du Cyclotron, 1348 Louvain-la-Neuve (enterprise number VAT BE 0874.830.726, RLP Nivelles), has increased its


investment to 635 530 shares, or 2.38 percent of the capital at this date.

➤“Institut National des Radioéléments FUP, whose registered office is located at Avenue de l’Espérance 1 (enterprise number VAT BE 0408.449.677, RLP Charleroi), continues to hold 1 423 271 shares, or 5.33 percent of the capital at this date.

Inviewof theabove,theaffiliatedpersonsdisclosureof October30,2007,associatingBelgianAnchorageSAandIBAInvestmentsSCRL,

involved8408662shares,or31.49percentof thecapitalstockof IBASAatOctober1,2009.Similarly,asof October1,2009,thedisclosureof partiesactinginconcertof February14,2008,associatingBelgianAnchorageSA,IBAInvestmentsSCRL,andInstitutNationaldesRadioélémentsFUP,involved9831933shares,or36.82percentof thecapitalstockof IBASAatOctober1,2009.”

Subsequent eventsThesituationwasasfollowsatDecember31,2009:

Situation of denominator

December 31, 200926 719 155

REfEREnCE SHAREHolDERS

ACTInG In ConCERT

AffIlIATED PERSonS A

AffIlIATED PERSonS B

Numberof shares

% Numberof shares

% Numberof shares

% Numberof shares

%

Belgian Anchorage SCRl 7773132 29.09% 7773132 29.09% A 29.09%

IBA Investment SCRl 635530 2.38% A 2.38%

IBA S.A. 75637 0.28% A 0.28%

UCl ASBl 426885 1.60% 426885 1.60% B 1.60%

Sopartec SA 529925 1.98% 529925 1.98% B 1.98%

Institut des Radioéléments fUP 1423271 5.33% 1423271 5.33%

10 864 380 40.66% 10 153 213 38.00% 8 484 299 31.75% 956 810 3.58%


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General information


Corporate nameIonBeamApplicationsSA,abbreviatedIBASA.

Registered officeCheminduCyclotron,3B-1348Louvain-la-Neuve,BelgiumEnterprisenumberVATBE0428.750.985,RLPNivelles

Date, form, and period of incorporationIBAwasincorporatedforanindefiniteperiodonMarch28,1986asasociétéanonymeunderBelgianlaw.Itisalistedcompanypursuanttoarticle4of theBelgianCodeof CompanyLawandacompanyhavingofferedsecuritiestothepublicpursuanttoarticle438of theBelgianCodeof CompanyLaw.

Corporate purpose (article 3 of the articles of incorporation)Thepurposeof theCompanyistoengageinresearchanddevelopmentandtoacquireintellectualpropertyrightswithaviewtotheexploitation,fabrication,andmarketingof applicationsandequipmentinthefieldof appliedphysics.Itmayengageinanyandallsecurities,real-estate,financial,commercial,andindustrialoperationsthataredirectlyorindirectlyrelatedtoitscorporatepurpose.Itmayacquireaninterest,bycontribution,merger,purchaseof shares,oranyothermeans,incompanies,partnerships,orcorporationswhosepurposeissimilar,analogous,related,orusefultotheachievementof itscorporatepurposeinwholeorinpart.

Consultation of corporate documentsTheCompany’sstatutoryandconsolidatedstatementsarefiledwiththeNationalBankof Belgium.Copiesof theCompany’sconsolidatedarticlesof incorporation,itsannualandsemi-annualreports,andallothershareholderdocumentationmaybeobtainedattheCompany’swebsite(www.iba-worldwide.com)orbyshareholderrequesttotheCompany’sregisteredoffice.

Capital stockAtDecember31,2009,IBA’scapitalstockwasvaluedatEUR37504503.12andconsistedof 26719155fullypaidshareswithnoparvalue,including11984565shareswithVVPRstrips.

InNovember2001,theCompanyissued500000stockoptionsforGroupemployees(“2001Plan”).Of theseoptions,121100werecanceledbynotarialactonJuly9,2002,and118375werecanceledbynotarialactonJuly13,2004.Mostof thesestockoptionsallowthebeneficiarytopurchaseanewshareatEUR12.60followingcertainproceduresduringspecificperiodsbetweenDecember1,2002andDecember31,2010.AtDecember31,2009,123625of the2001Planstockoptionsremainedoutstanding.

InSeptember2002,theCompanyissued3000000stockoptionsforGroupemployees(“2002Plan”).Of theseoptions,167650werecanceledbynotarialactonJuly17,2003,991750werecanceledbynotarialactonJuly13,2004,and474220werecanceledbynotarialactonJuly11,2005.Mostof thesestockoptionsallowthebeneficiarytopurchaseanewshareatEUR3.34followingcertainproceduresduringspecificperiodsbetweenDecember1,2003andAugust31,2012.Thefollowingoptionswereexercisedin2009:120bynotarialactof October16,2009.AtDecember31,2009,316337of the2002Planstockoptionsremainedoutstanding.

InSeptember2004,theCompanyissued1000000stockoptionsforGroupemployees(“2004Plan”).Of theseoptions,500000wereawardedfreeof chargetoemployeesof IBAanditsBelgiansubsidiariesandSpecificPersonssubjecttotheBelgianEmploymentActionPlanActof March26,1999(“freestockoptions”).Another500000of theseoptionswereofferedat4percentof thestrikepricetoemployeesandSpecificPersonsnotsubjecttotheBelgianEmploymentActionPlanActof March26,1999(“purchasablestockoptions”).ThissegmentwasintendedessentiallyforemployeesandSpecificPersons


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associatedwithsubsidiariesof IBASAincountriesoutsideBelgium,wherestockoptionsaretaxedwhentheyareexercisedratherthanwhentheyaregranted.Inordertodistributetheimpactof thetaxburdenonbeneficiariessubjecttheBelgianEmploymentActionPlanAct,insteadof givingthesestockoptionsaway,theCompanyissuedthematapriceapproximatelyequaltothemarginaltaxrateburdenforbeneficiariessubjecttotheAct.Of thetotaloffer,496000freestockoptionswereaccepted,and390000purchasableoptionswerepurchased.Consequently,4000unacceptedfreestockoptionswerecanceled,asrecordedbynotarialactonDecember22,2004.ThesestockoptionsallowthebeneficiarytopurchaseanewshareatEUR3.72followingcertainproceduresduringspecificperiodsbetweenDecember1,2007andSeptember30,2010.

Thefollowingoptionswereexercisedin2009:12750bynotarialactonJanuary21,2009,350bynotarialactonApril16,2009,5450bynotarialactonJuly14,2009,and6550bynotarialactonOctober16,2009.AtDecember31,2009,664200of the2004Planstockoptionsremainedoutstanding.

InOctober2005,theCompanyissued90000stockoptionsforGroupemployees(“2005Plan”).Allof thestockoptionswereaccepted.TheyallowthebeneficiarytopurchaseanewshareatEUR6.37followingcertainproceduresduringspecificperiodsbetweenDecember1,2008andSeptember30,2011.Thefollowingoptionswereexercisedin2009:9000bynotarialactof October16,2009.AtDecember31,2009,atotalof 81000of the2005Planstockoptionsremainedoutstanding.

InOctober2006,theCompanyissued575000stockoptionsforGroupemployees(“2006Plan”).Theofferingwasdistributedinmuchthesamewayasforthe2004Plan.AsrecordedbynotarialactonDecember22,2006,of the332000freestockoptions,287500wereaccepted,andof the243000purchasablestockoptions,149750werepurchased.Consequently,44500

unacceptedfreestockoptionswerecanceled,asrecordedbynotarialact.TheyallowthebeneficiarytopurchaseanewshareatEUR13.64followingcertainproceduresduringspecificperiodsbetweenDecember1,2009andSeptember30,2012.AtDecember31,2009,atotalof 437250of the2006Planstockoptionsremainedoutstanding.

InOctober2007,Companyissued450000stockoptionsforGroupemployees(“2007Plan”).Theofferingwasdistributedinmuchthesamewayasforthe2004Plan.AsrecordedbynotarialactonDecember20,2007,of the259000freestockoptions,219788wereaccepted,andof the191000purchasablestockoptions,118458werepurchased.Consequently,39212freestockoptionswerecanceled,asrecordedbynotarialact.TheyallowthebeneficiarytopurchaseanewshareatEUR19.94followingcertainproceduresduringspecificperiodsbetweenDecember1,2010andSeptember30,2013.AtDecember31,2008,therewere338246stockoptionsfromthisplan.Noneof theseoptionswasexercisableatthatdate.

InSeptember2008,theCompanyissued350000stockoptionsforGroupemployees(“2008Plan”).Theofferingwasdistributedinmuchthesamewayasforthe2004Plan.AsrecordedbynotarialactonDecember18,2008,of the200000freestockoptions,77283wereaccepted,andof the150000purchasablestockoptions,38187werepurchased.Consequently,122717freestockoptionswerecanceled,asrecordedbynotarialact.TheyallowthebeneficiarytopurchaseanewshareatEUR14.18followingcertainproceduresduringspecificperiodsbetweenDecember1,2011andSeptember30,2014.AtDecember31,2009,therewere115470stockoptionsfromthisplan.Noneof theseoptionswasexercisableatthatdate.

InMay2009,asauthorizedbylaw,theBoardof Directorsdecidedtoproposeathree-yearextensionof theexerciseperiodsforfreeoptionsgrantedunderthe2004,2005,2006,and2007


stockoptionplans,withcertainrestrictionsapplyingtopersonsholdingoptionswithatotalvalueof morethanEUR100000(calculatedasthestrikepricetimesthenumberof options).InSeptember2009,theCompanyissued1000000stockoptionsforGroupemployees(“2009Plan”).Theofferingwasdistributedinmuchthesamewayasforthe2004Plan.AsrecordedbynotarialactonDecember16,2009,of the620000freestockoptions,346578wereaccepted,andof the380000purchasablestockoptions,89193werepurchased.Consequently,273422freestockoptionswerecanceled,asrecordedbynotarialact.TheyallowthebeneficiarytopurchaseanewshareatEUR8.26followingcertainproceduresduringspecificperiodsbetweenDecember1,2012andSeptember30,2015.AtDecember31,2009,therewere435771stockoptionsfromthisplan.Noneof theseoptionswasexercisableatthatdate.

Thus,atDecember31,2009,2511899stockoptionswereissuedandoutstanding.

Allstockoptionsmayalsobeexercisedintheeventof atakeoverbidforIBAorof acapitalincreasewithpreferentialrights.

InApril2009,theCompanyoffered200000sharesforsubscriptionbyGroupemployees(2009ESPPlan).AsrecordedbynotarialactonMay29,2009,of the200000newsharesofferedforpurchase,121838werepurchasedatapriceof EUR4.09pershare.Thesharesofferedforpurchasewereregisteredcommonstocksharesof IBAcapitalstockwithVVPRstripsandownershipgrantedasfrom2009.Theywereofferedatapurchasepriceequaltotheaveragemarketpricefor30dayspriortotheoffer,lessadiscountof 16.67percent.Thesharesmaynotbesoldforthreeyearsasfromtheendof thepurchaseperiod.

Authorized capital TheExtraordinaryGeneralMeetingof May14,2008authorizedtheBoardof DirectorstoincreasetheCompany’scapitalthroughoneormorestockofferingsuptoamaximumof EUR25000000.

Thisauthorizationisvalidforfiveyearsfromthedateof publicationintheMoniteurBelgeof thedecisionof theExtraordinaryGeneralMeetingof May14,2008;thatis,untilJune10,2013.AtDecember31,2009,followingthelaunchof the2009stockoptionplan,theauthorizedcapitalwasvaluedatEUR23290752.01.

Patents and technologiesIBAiscarefultopatentallaspectsof itstechnologyforwhichapatentprovidesacommercialadvantage.

Inaddition,theCompanyhasmaintainedthesecrecyof asignificantportionof itsknow-howthatisunpatentableorforwhichtheCompanybelievessecrecyismoreeffectivethanpublicationinapatentapplication.Morefundamentally,theCompanybelievesthatthebestwaytoprotectitself fromitscompetitorsisnotbypatentingitsinventions,butbymaintainingitstechnologicallead.

IBAalsolicensespatentsfromthirdpartiesandpaysroyaltiesonthem.licensing and cooperation agreementsIBAhaslicensingagreementsinvolvingvariousaspectsof itstechnology.Listingandexplainingthenatureandtermsof theselicensingagreementsisbeyondthescopeof thisannualreport.Theseagreementsinvolve,forexample,certainaspectsof itsparticleacceleratortechnologyandanumberof componentsof itsprotontherapyequipment.SeveralagreementsrelatetoBioAssaysbusiness.Eventually,morerecentagreementswereenteredintowithregardstothefuturecommercialisationof proprietarymoleculesinmedicalimagery.


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info

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ion

five-Year Capital History

SHARES CAPITAl (En EUR)

Transaction new shares Total shares Change (∆) Total

03/23/05Exerciseof optionsunder2002stockoptionplan +200000 24842453 +278340 34882956



















06/23/08Capitalincrease +544611 26520083 +764447 37225098









05/29/2009ESPPlan,2009 +121838 26698035 +171024 37474847

07/14/2009Exerciseof optionsunder2004stockoptionplan +5450 26703485 +7653 37482500,15





01/20/2010Exerciseof optionsunderextended2004plan +23400 26798455 +32861 37615864,11



Gen

eral

info

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IBAstockisquotedontheEuronextBrusselscontinuousmarket.Itispartof theEuronextBrusselsBellMidindex.ItwasintroducedontheStockExchangeonJune22,1998atapriceof EUR11.90(adjustedfora5to1splitinJune,1999).Therewerenoconvertiblebondsorwarrantsissuedasof December31,2009.During2009,IBAstockfollowedthestockmarkets,closingatEUR8.45attheendof December2009,upslightlycomparedtotheendof 2008.Thetotalnumberof stockoptionsissuedforpersonnelroseto2508332attheendof 2009.

IBA stock

04000080000120000160000200000240000280000320000360000400000

4

5

6

7

8

9

10

11

-0,43-0,33-0,23-0,13-0,030,070,170,270,370,47

2ja

n09

22ja

n09

11fe

b0

9

3m

ar0

9

23m

ar0

9

14a

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09

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9

25m

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9

12ju

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9

2ju

l09

22ju

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11a

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9

31a

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9

18s

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9

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9

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9

8d

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27ja

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13d

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9

Stock market prices

■Volume■Marketprice

■IBA■BelMid■BEL20

The stock market and the shareholders

e11.00

e10.00

e9.00

e8.00

e7.00

e6.00

e5.00

e4.00

47%

37%

27%

17%

7%

-3%

-13%

-23%

-33%

-43%

400000

360000

320000

280000

240000

200000

160000

120000

80000

40000

0


Interimstatements,firstquarter2010 May11,20102010AnnualShareholder'sMeeting May12,2010at10:00a.m.Publicationof thesemi-annualresultsasof June30,2010 August31,2010Interimstatements,thirdquarter2010 November20,2010Publicationof theannualresultsonDecember31,2010 March15,2011

Shareholder schedule

December 31, 2008 Diluted December 31, 2009 Diluted

Shareholdersnumber of

shares %number of

shares %number of

shares %number of

shares %

BelgianAnchorageS.A.(1)(2) 7773132 29.26% 7773132 26.95% 7773132 29.09% 7773132 29.09%

InstitutdesRadioéléments(IRE)(1)

1423271 5.36% 1423271 4.93% 1423271 5.33% 1423271 5.33%

Sopartec(UCL)(1) 529925 1.99% 529925 1.84% 529925 1.98% 529925 1.98%

UniversitéCatholiquedeLouvain(UCL)(1)

426885 1.61% 426885 1.48% 426885 1.60% 426885 1.60%

IBAInvestments(3) 433692 1.63% 433692 1.50% 635530 2.38% 635530 2.38%

IBAS.A. 75637 0.28% 75637 0.28%

Float 15976192 60.14% 18253688 63.29% 15854775 59.34% 18363107 68.73%

ToTAl 26 563 097 100.00% 28 840 593 100.00% 26 719 155 100.00% 29 227 487 100.00%

(1) Transparency statement at October 26, 2009 (most recent published statement). (2) Belgian Anchorage is a company established and wholly owned by IBA management and employees.(3) IBA Investments is a second-tier subsidiary of IBA S.A.


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IBA

An

nu

Al

re

po

rt

200

9

e

IBA

Gro

up |

2010

| A

R20

09

Strengthened to take on the futureAnnual report 2009

IBA ContactJean-Marc Bothy

Chief Financial Officer

Ph.: +32 10 47 58 90


Version française disponible sur demande.

Ion Beam Applications, S.A.Chemin du Cyclotron, 3

1348 Louvain-la-Neuve, Belgium

Ph.: +32 10 47 58 11 – Fax: +32 10 47 58 10

RPM Nivelles - VAT BE 428.750.985


Website: www.iba-worldwide.com

Published by IBA S.A., Chemin du Cyclotron, 3

1348 Louvain-la-Neuve, Belgium.

Design & Production: www.thecrewcommunication.com

This brochure is printed on ECF wood-free coated paper. It

was produced with plants that comply with ISO 14001, the

environmental management standard.

IBA Annual Report 2009

Documents

Transcript of IBA Annual Report 2009