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					annual report   2004
     IBt s.a.

     Registered Office:
     Zone Industrielle C
     7180 Seneffe - Belgique
     Tel: +32 (0)64 520 811
     Fax: +32 (0)64 520 801
     E-mail: ibt@brachytherapy.be
     Internet Site: www.ibt.be

     Activities:

     Development, production and marketing of radiotherapeutic implants
     used in the brachytherapeutic treatment of certain forms of cancer.

     Contacts:

     Investor relations and financial information
     François Blondel, Managing Director
     E-mail: fblondel@brachytherapy.be

     Information about brachytherapy and IBt products:
     Serge Lamisse, Managing Director
     E-mail: slamisse@brachytherapy.be
     Laurence Goemaere, Marketing Communication Manager
     E-mail: lgoemaere@brachytherapy.be




I B t I annual report 2004
Ta b l e o f c o n t e n t s



Key consolidated figures                                   3


To our shareholders                                        4


IBt on the Stock Exchange                                  7


Financial agenda                                           9


Management report                                        11


Brachytherapy                                            17


IBt                                                      19


Corporate Governance                                     21




Financial section                                         23




Consolidated financial statements                        24
        Consolidated balance sheet                       24
        Consolidated income statement                    26
        Notes to the consolidated accounts               27
Valuation rules                                          31
Statutory Auditor’s Report                               32
Unconsolidated accounts                                  34
        Balance sheet                                    34
        Income statement                                 36
        Notes and comments                               37
 IFRS/IAS standards                                      40




                    contents          IBt I   annual report 2004   I p. 1
                 Financing structure                     (in thousands EUR)




                             Shareholders’ equity
                             Total debts




                         7 786          7 623          7 608          5 041          5 588


                         5 494
                                        3 740          5 087          5 195          4 163
                  2000




                                 2001




                                                2002




                                                               2003




                                                                              2004




IBt I   annual report 2004              I p. 2
Key consolidated figures

Consolidated Figures (in thousands EUR)                                   2004               2003                   2002                2001          2000


Operating Income                                                      6 030                  6 894                   9 096              6 997          4 315
EBITDA1                                                                  67                - 1 940                   - 188              - 322        - 1 114
Operating Result                                                    - 1 450                - 3 648                 - 1 772            - 2 197        - 3 415
Financial Result                                                        278                    483                      24                208             68
Extraordinary Items                                                     -62                    892                     139                - 49           889
Restructuring Charges                                                   N/A                - 1 090                     N/A                N/A            N/A
Net Income                                                          - 1 177                - 3 363                 - 1 609            - 2 038        - 2 458


Shareholders Equity                                                   4 163                 5 195                   5 087              3 740          5 494
Debt                                                                  5 588                 5 041                   7 608              7 623          7 786



Net Result per Share (in EUR /Share)


Operating Income                                                        0.92                  1.06                    1.57               1.28           0.88
EBITDA1                                                                 0.01                - 0.30                  - 0.03             - 0.06         - 0.23
Operating Result                                                      - 0.22                - 0.56                  - 0.31             - 0.40         - 0.70
Financial Result                                                        0.04                  0.07                    0.00               0.04           0.01
Extraordinary Items                                                   - 0.01                  0.14                    0.02             - 0.01           0.18
Restructuring Charges                                                    N/A                - 0.17                     N/A                N/A            N/A
Net Income                                                            - 0.18                - 0.52                  - 0.28             - 0.37         - 0.50


Shareholders Equity                                                       0.58               0.74                    0.84                0.67          1.02
Debt                                                                      0.80               0.72                    1.26                1.37          1.44



Number of Shares


At the end of the period                                          7 153 536         7 018 536                6 023 940              5 560 369    5 394 769
Average number                                                    7 086 036         6 521 238                5 792 155              5 477 569    4 909 819

note 1: EBITDA = Earnings before Interest, Taxes, Depreciation and Amortization




                                                          Results per share                       (in EUR)


                                                                                                                    Operating income
                                                                                                                    EBITDA
                                                                                                                    Net income



                                                                                          1.57

                                                                          1.28                              1.06
                                                                                                                             0.92
                                                          0.88



                                                                                                                             0.01
                                                                          -0.06           -0.03
                                                          -0.23                                                              -0.18
                                                                                          -0.28             -0.30
                                                                          -0.37

                                                          -0.50
                                                                                                            -0.52
                                                   2000




                                                                   2001




                                                                                   2002




                                                                                                     2003




                                                                                                                      2004




                      key consolidated figures                                    IBt I           annual report 2004                        I p. 3
Letter to our shareholders




2004 h as b e e n b o th a c h a lle n g in g and exciting year for IB t !




While the year ended on a very positive note, it            First, on the commercial side, the sales and
started off as a difficult one for the IBt family. Changes   marketing team in Europe quickly capitalized on
in reimbursement policy in the USA had put severe           earlier investments in the development of our
downward pressure on seed prices during 2003                distribution network there. As a result, sales rapidly
and competitiveness for our products sold on the            progressed and reached triple digit growth both in
American market was further negatively impacted             volume of units and in revenue terms over the year.
by the serious decline in the value of the US dollar        At the same time, on the other side of the house, the
against the Euro. This forced IBt to take the painful       manufacturing team rose to this challenge by not
step of downsizing its operations in the USA plus           only having seeds for every order available on time
ending its production of titanium encapsulated Pd-          every time, but it did this with a sizeable productivity
103 seeds in Belgium. While it was very difficult to         increase. Constantly growing sales volumes plus
have to say goodbye to many old colleagues and to           consistently improving efficiency in manufacturing
loyal customers, we knew these decisions had to be          made for a very satisfying year.
made to be back on track with growth and business
expansion. We thus refocused our attention towards          Second, while our commercial successes were
two priorities.                                             pushing the company towards EBITDA breakeven,




          IBt I      annual report 2004           I p. 4
the development team was hard at work on our new           the year the final manufacturing automation began
product, OptiSeed103, a “plastic” palladium seed. All      to arrive, and integration and validation of this
of the basic equipment was installed and working by        equipment is scheduled to be completed in the first
summer allowing us to fabricate the first radioactive       semester of 2005.
seeds. Physics characterization quickly verified our
predictions about the near perfect symmetry of the         For 2005, our attention is focused on maintaining
radiation pattern around the seed. Once we were able       strong growth on the European market and
to begin making radioactive seeds, milestones were         expanding the usage of brachytherapy together with
reached in quick succession: 510(k) clearance from         orchestrating a successful launch of OptiSeed103
the US FDA to market OptiSeed103, completion of            on the US market. We are confident that these
academic studies of the medical physics properties         objectives will bring rewards and we look forward to
(TG-43 parameters) and their acceptance for                sharing with you our successes during 2005 !
publication, NIST calibration of OptiSeed , and
                                            103


finally sealed source certification.    All regulatory
clearances and medical community requirements to
market OptiSeed103 in the USA are in place. Late in




                            Francois Blondel
                            Managing Director




    Serge Lamisse
   Managing Director


                                          John L. Carden
                                       Chairman of the Board



                letter to our shareholders                 IBt I annual report 2004           I p. 5
                                  Stock market data


                                      2004        2003        2002        2001        2000



Minimum share price                    3.70        3.45        6.75        7.20        8.20

Maximum share price                    5.05        7.80        9.50        9.99      16.90

Closing price on Dec 31                4.64        4.10        7.69        8.80        8.52



Number of shares on Dec 31        7 153 536   7 018 536   6 023 940   5 560 369   5 394 769



Market capitalisation at Dec 31

(in EUR millions)                      33.2        28.8        46.3        48.9        46.0




  IBt I      annual report 2004     I p. 6
IBt on the stock exchange

The IBt share                                                                                                      Indexes


Bri ef h i st o r y                                                                                                The IBt share is included in the Euronext “Next
                                                                                                                   Economy” quality segment.
The IBt ‘B’ share has been listed since April 1997.
At the time of the IPO (Initial Public Offering) it was
the first share traded on the brand new Euro New
Market Brussels (Euro N-M).This initial offering
was placed on the market at EUR 2.48 a share                                                                       The IBt share is part of the BASR (Belgian All Share
(equivalent price following the 10:1 stock split of                                                                Return) index. It has also been included, with a
August 1998), raising the equivalent of EUR 6.2                                                                    weighting of 1.21%, in the new «BEL Small index»
million. In January 1998, the company launched a                                                                   of 46 companies ever since this was launched on 1
second public offering, raising EUR 12.4 million with                                                              March 2005. The criteria for inclusion in this index
a convertible bond issue (issue price: EUR 4.39)                                                                   are the liquidity of the share and the size of the
maturing in July 2003. Over 97% of bondholders                                                                     free float.
subsequently opted to convert their bonds into IBt
shares.                                                                                                            S har e pr ice


Today the IBt share (ticker: ‘IBTB’) is traded                                                                     (graph see herebelow)
on the continuous market of Euronext (site:
www.euronext.be).                                                                                                  Liquidity


                                                                                                                   Trading volume rose slightly in 2004 to 1 811 024
                                                                                                                   shares, or just over EUR 8 million, equal to 25%
                                                                                                                   of all IBt ‘B’ shares issued by the company. The
                                                                                                                   daily trading volume is just under seven thousand
                                                                                                                   shares. Bank Degroof has acted as “liquidity
                                                                                                                   provider” to IBt since March 2003.




                               Share price evolution


7                                                                                                                  100 000
                                                                                                                   90 000
6                                                                                                                                              For further information:
                                                                                                                   80 000
5                                                                                                                  70 000

4                                                                                                                  60 000
                                                                                                                                               Internet site              www.ibt.be
                                                           IBt ‘B’                                                 50 000
3
                                                           Bel Small index                                         40 000
                                                                                                                                               E-mail          ibt@brachytherapy.be
2                                                          Daily volume                                            30 000
                                                                                                                   20 000
1
                                                                                                                   10 000
0                                                                                                                  0
    jan 04

             feb 04

                      mar 04

                                apr 04

                                         may 04

                                                  jun 04

                                                             jul 04

                                                                      aug 04

                                                                               sep 04

                                                                                        oct 04

                                                                                                 nov 04

                                                                                                          dec 04




                          IBt on the stock exchange                                                            IBt I         annual report 2004         I p. 7
Shareholding structure                                                   of a new share issue in 1999, and under the «stock
                                                                         option plan». 3 805 218 warrants were outstanding
At the time of its creation, the company issued 2                        on December 31 2004. For further details on these
types of shares: type ‘A’ and type ‘B’ shares.                           warrants, see below.
The rights attached to these shares differ (see the
detailed description in the “Corporate Governance”
section. The 214 000 ‘A’ shares are held by the                          Main current shareholders
founder shareholders and will be automatically
converted into ‘B’ shares at the 2007 annual                             At December 31 2004, the main shareholders who
shareholders’ meeting. Today, only ‘B’ shares are                        had confirmed their holding in the capital of the
listed on Euronext.                                                      company were: (see table below)


There are ‘A’ and ‘B’ beneficiary shares.                                 Together, these shareholders held 1 392 267
These are nominative and non-transferable. The                           shares, or 19.5% of the total number of shares in
‘A’ beneficiary shares, owned by the founders,                            circulation. The balance or “free float” of almost
convey the right to one vote per beneficiary share,                       80% is held by the public.
but do not entitle their holders to dividends or any
liquidation surplus should the company be wound                          On December 31 2004, Creafund II and SRIW each
up. The ‘B’ beneficiary shares have the same rights                       held more than 5% of the capital of the company.
as the normal ‘B’ shares. On December 31 2004,                           The company by-laws require a «crossing of
there were 5 million ‘A’ beneficiary shares and 250                       threshold declaration» to be submitted whenever
000 ‘B’ beneficiary shares.                                               any shareholder holds more than 5% of the voting
                                                                         rights (note: included in this calculation are the
Various series of warrants have also been issued                         voting rights attached to the beneficiary shares, cf.
since 1996: at the time of incorporation, at the time                    above).




                                                        Main shareholders

                 Type                              Number                       Voting                       Owners
                of share                                                        rights   (1)




                   A                           214 000                         2,99%                    Founders(2)
                   B                           234 182                         3,27%                    Founders(3)
                   B                           422 043                         5,90%             Creafund II, n.v.
                   B                           388 396                         5,43%                     SRIW s.a.
                   B                           100 000                         1,40%                  Sopartec, s.a.
                   B                             33 646                        0,47%                     IMBC, s.a.


(1)
      In % of the total number of existing shares on december 31, 2004
(2)
      Ms. R.Feicht and MM. J.L.Carden, R.Coniglione and J.Russell
(3)
      MM. J.L.Carden, R.Coniglione and J.Russell




             I B t I annual report 2004                     I p. 8
Dividends


Given the loss incurred in 2004, a proposal will be
made to the General Assembly of Shareholders not
to distribute a dividend and to vote to carry forward
the loss for the period ending on December 31
2004.



Financial agenda


The company’s communication policy is to inform
the financial markets in the most complete and
qualified way. Press releases are therefore                          activities. Every press release is disseminated via
published in three languages each time a major                      the company’s Internet site, the Euronext site and
decision or event occurs that could affect IBt                      a wide network of financial information sites.




Annual Shareholders’ Meeting                                                                            June 6, 2005
Announcement of half-yearly results                                                            mid-September 2005
Announcement of 3 quarter results
                         rd
                                                                                                  mid-November 2005
Announcement of 2005 annual results                                                                   February 2006
Annual Shareholders’ Meeting                                                                            June 5, 2006

For further information: Internet site: www.ibt.be
                         E-mail: ibt@brachytherapy.be




                                                        Founder’s - ‘A’ shares           214 000        2,99%

                                                        Founder’s - ‘B’ shares           234 182        3,27%

                                                        Creafund II n.v.                 422 043        5,90%

                                                        SRIW s.a.                        388 396        5,43%

                                                        Sopartec s.a.                    100 000        1,40%

                                                        IMBC s.a.                        33 646         0,47%

                                                        Public                           5 761 269      80,54%




                 IBt on the stock exchange                          IBt I   annual report 2004          I p. 9
IBt I   annual report 2004 I p. 10
Management report



 Managem e nt Repor t 1 by Boar d of Di r ect o rs -                      an activity generating over half its annual sales. At
 Cons olidate d Account s f or t he year 2004                             the same time it set two priority objectives for the
                                                                          year:
 2004 saw a major refocusing of IBt’s activities.
                                                                          (1) improving profitability, with the goal of reaching
 IBt presents today a very different profile from what                         operating breakeven (EBITDA) on a quarterly
 it had in 2003. From being a company operating                               basis in the course of 2004 by means of a strict
 mainly in the United States and offering the full                            cost reduction and performance improvement
 range of products offered in its industry in 2003,                           plan, and
 IBt concentrated in 2004 essentially on developing
 sales of its iodine-125 based products on the                            (2) completing R&D on a brand new product, the
 European market. The company also terminated                                 Pd-103 associated OptiSeedTM biocompatible
 the production and marketing of its Pd-103 metallic                          polymer implant.
 implants, a loss-making activity, and scaled back
 its activities in the USA (the main market for sales                     At the time of preparation of its 2004 report, the
 of Pd-103 implants).                                                     Board is pleased to be able to announce that the
 With these decisions, taken at the start of the year,                    first objective has been more than fulfilled, and that
 the Board of Directors knowingly walked away from                        the OptiSeedTM project is now in its final stage.




(1) This “combined Management Report” includes both consolidated and non-consolidated information. It has been written in accordance
    with the Royal Decree of july 3 1996 and integrates all elements of the circular letter FMI- 2003-02 emitted by the CBFA (Banking,
    Finance and Insurance Commission)


                                                                                                             M a n a g e m e n t C o m m i t t e e i n Se n e ffe




                                  management report                      IBt I       annual report 2004 I p. 11
Management report



Milestones                                               December – registration of the Iodine-125 product
                                                         InterStrand® with the Russian Ministry of Health.
Certain key events of the past year merit particular     Participation in a Belgian economic mission to
attention:                                               China and the signing of a letter of intent with
                                                         a Chinese company to negotiate a distribution
April – signing of an agreement covering the             contract.
“polymer implant” R&D project between IBt and
the Walloon Region, via the DGTRE (Directorate-          A significant event after the balance sheet
General for Technology, Research and Energy).            closing date: in February 2005, IBt announced
This granted a “recoverable advance” (i.e. a loan        the renewal of the distribution agreement originally
repayable out of future sales income) of up to EUR       signed with Bard Europe in 2003. This company
2.3 million. This support will serve to finance a major   is part of the American group C.R. Bard, a world
part of the research budget (personnel expenses,         leader in the treatment of localized prostrate cancer
specific consultancy fees, and investments in             using brachytherapy implants. This new contract
project-related equipment).                              relates exclusively to the range of Iodine-125
                                                         titanium implants, and covers the non-exclusive
July – IBt receives the green light from the FDA         distribution of implants across continental Europe
(the Food and Drug Administration) to market its         until December 2006. The agreement does not
Optiseed™ Pd-103 product in the United States.           include the new generation of Pd-103 OptiSeed™
The originality of OptiSeed , the patent for
                                103
                                                         “polymer” implants.
which was issued in July 2003 by the US Patent
and Trademark Office, lies in associating, for the
first time in the history of brachytherapy, a new         Comments on the annual
biocompatible polymer with a radioactive source,         consolidated accounts
palladium-103. Apart from the major advantage
in terms of production cost, the fact of using a         Incom e statem ent
plastic instead of the titanium currently used in
brachytherapy improves dosing accuracy as well           Net sales, consisting of the sale of implants
as visibility of the sources in medical imaging.         after deduction of the margin paid to distribution
Finally, the use of plastic offers greater flexibility    partners, amounted to EUR 4.60 million, down 18%
in the design and shape of implants, thereby             on 2003. On a like-to-like basis (i.e. sales of iodine-
facilitating the future use of brachytherapy in other    125 implants in Europe), sales have surged ahead
applications.                                            to twice 2003 levels in terms of both units sold and
                                                         income generated. The geographic distribution of
October – creation of a new subsidiary in England,       sales has been totally reversed from one year to
IBt Ltd, owned 100% by IBT s.a. This distribution        the next: in 2003 the American market accounted
subsidiary will cover the United Kingdom and             for over two-thirds of net sales. In 2004 over 80%
Ireland. It made its first sales at the end of 2004.      of implant sales were to the European market.




        IBt I     annual report 2004 I p. 12
Other operating income, up by 12%, consists            elements developing as follows:
mainly of the taking into income part of the R&D
programme authorized by the Walloon Region             1. raw materials: EUR 0.95 million (- 51%)
and the inhouse production relating to the polymer     2. goods and services: EUR 2.04 million (- 28%)
implant.                                               3. salaries and wages: EUR 2.65 million (- 30%)
                                                       4. depreciation and amortization: EUR 1.52
It should be noted that the consolidation scope was      million (- 11%)
modified in 2004 with the full consolidation of the     5. other charges: EUR 0.29 million
new English subsidiary IBt Ltd, which was created
at the end of the year and has since recorded its      The lower net financial result is explained by lower
first sales.                                            currency gains and higher interest charges.


Operating     charges   are    down,    sometimes      The significant improvement in gross margin (79%
significantly, thanks to to the cost savings and        -vs- 64% in 2003) enabled the company, for the
performance improvement plan initiated at the          first time in its history, to record a slightly positive
start of the year. Globally, these operating charges   annual EBITDA. Similarly, the net result evolved
have fallen by 29% over the year, with individual      favourably, improving by almost 65%.




                          management report            IBt I    annual report 2004 I p. 13
Management report



Bal an ce s h e e t                                    Capital and reserves of EUR 4.16 million break
                                                       down into capital of EUR 4.43 million, share
Intangible fixed assets (EUR 1.17 million) consist      premiums of EUR 22.45 million and investment
of the net value of the technology contributed to      grants of EUR 0.69 million, from which have
the company (amortized over its patent protection      been deducted the loss for the year (after the
period), and of the net value of the research and      appropriation to be proposed to the General
development costs, amortized straight-line over 5      Shareholders’ Meeting of June 6 2005) and the loss
years. Tangible fixed assets, net of accumulated        carryforward of EUR 22.99 million. The provisions
depreciation, amount to EUR 5.51 million. The          amounted to EUR 0.02 million. Total creditors
main items here are EUR 2.45 million representing      amount to EUR 5.59 million. Amounts payable
the value of the land and the production site and      after one year, totalling EUR 2.96 million, consist
EUR 1.94 million for the operating equipment           of the balance of a loan granted by Invest Borinage
(cyclotrons, assembly equipment, etc.). Stocks         Centre and of the balance of advance payments
amounted to 0.63 million, including EUR 0.14 million   on orders paid by the company’s commercial
of finished products. Amounts receivable within         partners on signature of distribution contracts.
one year increased to EUR 1.09 million and consist     Amounts payable within one year consist of trade
essentially of trade receivables. Investments and      debts (EUR 0.70 million, taxes, remuneration and
cash at bank and in hand amounted to EUR 1.39          social security (EUR 0.31 million) and bank debt
million.                                               (EUR 0.92 million).




           IBt I   annual report 2004 I p. 14
Information on Research and                                and conservative. This consists of reducing, as far
Development Activitiest                                    as possible, earnings volatility due to variations in
                                                           exogenous parameters like interest and exchange
Research and Development activities during the             rates. To achieve this, income and the related
year focused mainly on the new OptiSeed™ Pd-               charges are, whenever feasible, denominated in
103 implant project. Capitalized production costs          the same currency. Similarly, debt financing and
amount to EUR 0.48 million, or 6% of total operating       interest charges are denominated in the currency
charges.                                                   of the income stream they have served to produce.
                                                           Options, forward contracts and swaps are some
                                                           of the instruments used in implementing this risk
Legal Matters - Unconsolidated                             management policy.
Accounts
                                                           C onflict of inter est (A r ticles 523 and
Ap p ro p ri atio n o f th e r e s u lt a n d              524 of the C om pany C ode)
ap p l i cat i o n o f th e v a lu a tio n r u le s
                                                           The legislation applicable to the settlement of
The Board of Directors will propose to the Annual          conflicts of interest between the company and
Shareholders Meeting of June 6, 2005 that it               its directors (Article 523 of the Company Code)
approves the non-consolidated accounts for the             provides that, in the occurrence of such a situation,
year ended on December 31, 2004, showing a net             the director is required to declare his interest
loss - share of the group - of EUR 0.98 million. It will   and have it recorded in the minutes of the Board
also propose to carry forward the cumulative loss          meeting deciding on such matter. The code also
of EUR 22.56 million. Pursuant to Article 96 of the        requires the person having a conflict of interest to
Company Code and based on the plans drawn up               abstain from discussions and voting.
with Company management, the Board of Directors
confirms the continuity of the company’s activities,        No situation requiring the application of these
justifying the application of the current evaluation       provisions arose in 2004.
rules.
                                                           Issue of new subscr iption r ights
Au t h o ri z ed c a p ita l (A r tic le s 6 0 3 a n d     (A r ticle 608 of the C om pany C ode)
596 seq o f th e C o m p a n y C o d e )
                                                           During the past year 10 000 ‘D’ warrants were
No use was made of the authorized capital in 2004.         allotted under the existing “stock option plan” which
Hence, at December 31 2004, the balance of the             was set up in June 1999. Until now 198 400 out
available authorized capital remained unchanged            of the 268 500 available ‘D’ warrants have been
at EUR 2 769 014.93.                                       issued.


M an ag ement o f fin a n c ia l r is k s (A r tic le
119 o f t h e C o m p a n ie s C o d e


When it comes to managing financial risk, the
company pursues a policy that is at once pro-active




                               management report           IBt I     annual report 2004 I p. 15
Number of patients treated
by brachytherapy in Europe



   6000

   5000

   4000

   3000

   2000

   1000

        0
               2001

                      2002

                             2003

                                    2004




IBt I       annual report 2004 I p. 16
The brachytherapy technique




Brachytherapy is a radiotherapeutic treatment using      of life. Traditionally two treatment options were
tiny radioactive sources, often called seeds, placed     used: surgical removal of the gland, called radical
directly into the tumor. The precisely positioned        prostatectomy, and external beam radiation therapy.
implants act to destroy the cancerous cells. The         During the last 15 years, brachytherapy has
main application of brachytherapy today is the           appeared in the foreground of treatment alternatives
treatment of localized prostate cancer.                  for localized prostate cancer.
Prostate cancer is the most common form of cancer
in men over 50 and the second leading cause of           During brachytherapy, seeds are placed directly into
death in men in the world. Every year, more than         the tumor. Instead of surgery, needles are used for
100,000 men in Europe and North America combined         the precise placement of the radioactive sources in
die from this disease. Systematic screening with a       the prostate gland while the patient is under general
simple blood test, called PSA test, allows detection     or local anesthesia. The exact position of each seed
at an early stage, while the disease is still curable.   is visually controlled using an ultrasonic probe. The
Early diagnosis thus allows the patient to choose        implanted seeds deliver a precise radiation dose to
the best local and curative therapy for his lifestyle.   the prostate while sparing the surrounding healthy
                                                         tissues. Because the radioactivity decays over time,
The main challenge in prostate cancer therapy            the radiation dose is delivered in just a few months
is to effectively treat the tumor while minimizing       and the seeds become inert so they do not have to
side effects thus maintaining the patient’s quality      be removed from the patient.




                                                                  Some of the medical centers
                                                                  in Belgium offering the
                                                                  brachytherapy treatment for
                                                                  localized prostate cancer


                                                                  Liège                   CHU Sart Tilman
                                                                  Brugge                  AZ St. Jan
                                                                  Turnhout                St. Elisabeth Ziekenhuis
                                                                  Brussels                Clinique Générale St. Jean
                                                                  Merksem                 AZ Jan Palfijn
                                                                  Assebroek               AZ St. Lucas
                                                                  Namur                   Clinique Ste. Elisabeth
                                                                  Brussels                Hôpital St. Luc - UCL
                                                                  Brussels                Clinique Edith Cavell
                                                                  Brussels                Hôpital Erasme - ULB
CT-scan of implants in the prostate.




                  the brachytherapy technique            IBt I   annual report 2004 I p. 17
                The brachytherapy technique



                Today, with more than 60,000 patients in Europe           In Belgium, more than 20 centers are offering this
                and the United States treated per year, iodine-           treatment alternative and since May 2002 the cost
                125 brachytherapy is the most common treatment            of the procedure is reimbursed by Belgian Health
                for prostate cancer. Based on the results of long-        Insurance.
                term scientific studies, this treatment is gradually
                becoming the treatment of choice offering a               While today the principal indication for brachytherapy
                better quality of life for the patient after treatment.   implants is the treatment of prostate cancer, IBt is
                Brachytherapy is also starting to be used more            investigating, with a number of medical teams, the
                frequently in Latin America and in Asia where the         use of these products to treat other diseases.
                number of medical center using this treatment
                option should grow rapidly in the near future.            For more information on prostate cancer and
                                                                          alternative treatment options, you can visit our Web
                More than 200 medical centers spread throughout           Site www.ibt.be that will also give you the link with
                Europe are offering permanent seed prostate               other specialized sites:
                brachytherapy and nearly 5 000 European patients
                were treated in 2004.




                             IB t pr oducts tr ou g h o u t t h e w o r l d




                                                                                                                              Austria
                                                                                                                              Belgium
                                                                                                                              Finland
                                                                                                                              France
                                                                                                                              Germany
                                                                                                                              Greece
                                                                                                           IBt s.a.           Italy
United States                                                                                                                 Ireland
                                                                                                                              Portugal
                                                                                                                              Russia
                                                                                                                              Spain
                                                                                                                              South Africa
                                                                                                                              Sweden
                                                 South Africa                                                                 Switzerland
                                                                                                                              The Netherlands
                                                                                                                              Turkey
                                                                                                                              United Kingdom
                                                                                                                              United States




                                  annual report 2004
                         I B t I rapport annuel 2004 I p. 18
Meet the people behind IBt…




                                               S y l v i a n e B e r g e r,

                                                        QA Manager.


               Her top priorities: meet product specifications for 100%
     of our deliveries and maintain IBt’s excellent quality track record.




                                                       Enza Sciarrabone and
                                                       Céline Jacquet de Haveskercke,
                                                       in char ge of C ustom er S er vice and Logistics.


                                                       With two goals in mind, fulfilling customer orders accurately and
                                                       ensuring an on-time delivery at each client center in more then 20
                                                       countries. Since the start of the distribution in Europe, IBt has always
                                                       provided on-time delivery, despite strict logistic requirements in the
                                                       transport of short half-life radioactive products.




                                             Dominique Amiel,
                                   H u m a n Resour ces Manager.


Ensuring personnel recrutement and technical training and creating a
                   motivating work environment are some of the daily
                                            responsabilities within IBt.




                                                 IBt      IBt I      annual report 2004 I p. 19
            Executive Directors            Position                Expiration of Term


            Dr. John Carden (1)            Chairman of the Board   June 2005
            Mr. François Blondel (2)       Managing Director       June 2007
            Mr. Serge Lamisse (2)          Managing Director       June 2007
            Mr. Roy Coniglione (1)         Director                June 2005
            Mrs. Ruth Feicht (1)           Director                June 2007
            Mr. John Russell               Director                June 2005


(1)
      «A» Director
(2)
      «B» Director




              IBt I     annual report 2004 I p. 20
Corporate Governance



IBt applies Corporate Governance principles in                - to include an information item on this subject in
order to optimally fulfil the mission that has been            the agenda of the forthcoming General Meeting of
entrusted to it by its shareholders, with the aim of          Shareholders;
increasing the value of the enterprise. Shareholder           - that during 2005 the Board of Directors will
equality, management integrity and transparent                prepare to integrate the recommendations of the
communication are the principles that guide the               Code, taking due account of the specific nature of
company’s business.                                           the company’s activities.


In Belgium, the regulation of Corporate Governance
has taken a major step forward with the publication,          The Board of Directors
in December 2004, of the “Belgian Corporate
Governance Code”, also known as the “Lippens                  The role of the Board of Directors is to provide
Code” after the chairman of the Commission that               effective supervision and control of the company
drew it up.                                                   whilst supporting the enterprise spirit.


The recommendations contained in this Code                    C om position
and those issued by the Banking, Finance and                  (see two tables below)
Insurance Commission, whose remit includes
controlling corporations’ fulfilment of their periodical       The Board consists of ten Directors. Six of them
and continuous information obligations, have been             represent the major shareholders, two undertake
carefully examined by the Board of Directors. It              the daily management of the company, and two
has therefore been decided:                                   are independent. Amongst the six Directors




  Non-Executive Directors                                                                           Expiration of Term


  Creafund II, represented by Mr. Herman Wielfaert (2,3)   CEO – Creafund Group                          June 2007
  Mr. Jean-Pierre Delwart (2,3)                            Managing Director - Eurogentec s.a            June 2007
  Dr. Claude Onkelinx (2,3)                                Management Committee - s.p.r.l. Clinador      June 2005
  Comte Ferdinand d’Oultremont        (1)
                                                           Management Committee - Sopartec s.a.          June 2005


(1)
      «A» Director
(2)
      «B» Director
(3)
      Member of the Remuneration Committee




                            corporate governance             IBt I    annual report 2004 I p. 21
Corporate Governance


representing the major shareholders, four are          Committees
also founders of the company. The company’s by-
laws require shareholders to choose five Directors      A Remuneration Committee was set up at the end
from candidates presented by the majority of “A”       of 2004, and met once. It has three members, all
shareholders (“A” Directors) and five Directors         of them non-executive directors. Two of them are
from candidates presented by the “B” shareholders      also independent. It is chaired by the Creafund II
(“B” Directors).                                       representative, Mr. Herman Wielfaert. Committee
                                                       members currently take part in the Committee on
Co mp et e n c e s                                     an unremunerated basis.


The Board of Directors organises the management        In 2005, based on the recommendations of the
and auditing of the company. It defines the strategic   Belgian Corporate Governance Code, the Board
directions, takes investment decisions and draws       will examine whether it is in the company’s interest
up the accounts at regular intervals. It monitors      to set up other committees, and in particular
the quality of management and of communication         an   Appointments     Committee      and    an   Audit
policy. In general, it exercises complete and          Committee.
effective control of the company.


M o d e o f Op e r a tio n                             1. Audit of the Accounts


The Board of Directors can validly deliberate          The mandate of the Statutory Auditor has a
only if the majority of its members are present or     term of three years and is renewable. The current
represented. Of those present or represented, at       mandate was renewed in 2002 and will expire in
least two should be «A» Directors. Decisions are       2005. The present Statutory Auditor, who has been
taken by a simple majority vote of those present or    auditing IBt since its foundation in 1996, is:
represented.
                                                       s.p.r.l. A.&A. Clybouw & Cie, Oosterveldlaan 246 à
The Board meets at least four times a year, and        2610 – Wilrijk (Antwerp), Belgium, represented by
also whenever the situation requires. In 2004 the      Mr. André Clybouw, Commissaire.
Board met seven times and the participation rate
at regular Board meetings was 88%. Directors are       In addition to auditing the accounts, the auditor will
appointed for a maximum six-year term and may          play a key role in verifying the correct interpretation
be reelected. There is no age limit.                   and application of the new accounting standards
                                                       norms (IAS/IFRS). A fixed fee is paid to the
Remu n e r a tio n                                     Statutory Auditor for his mission of auditing the
                                                       accounts. Aside from this main mission, additional
The mandate of non-executive Directors is not          work may be required from time to time and be
remunerated.                                           billed separately.




        IBt I        annual report 2004 I p. 22
         Ta b l e o f c o n t e n t s
                 financial section




         Consolidated financial statements           24
               Consolidated balance sheet            24
               Consolidated income statement         26
               Notes to the consolidated accounts    27


         Valuation rules                             31


         Statutory Auditor’s Report                  32


         Consolidated accounts                       34
               Balance sheet                         34
               Income statement                      36
               Notes and comments                    37



         IFRS/IAS standards                          40




table of contents - financial section          IBt
Consolidated financial statements
                                                               as at 31 december 2004



Consolidated balance sheet after appropriation

in EUROS
                                                                             2004            2003
ASSETS
Fixed assets                                                          6 676 853.12    6 504 880.80
       I.      Formation expenses
       II.     Intangible assets                                      1 166 955.29    1 064 146.19
       III.    Tangible assets                                        5 507 822.25    5 436 068.84
               A. Land and buildings                                  2 451 593.04    2 659 269.33
               B. Plant, machinery and equipment                      1 936 109.97    2 560 393.10
               C. Furniture and vehicles                                139 730.99      130 034.04
               D. Leasing and other similar rights                      976 537.32       25 282.73
               E. Other tangible assets                                   3 850.93        6 089.64
               F. Assets under construction and advance payments                         55 000.00
      IV.      Financial assets                                           2 075.58        4 665.77
               B. Other enterprises                                       2 075.58        4 665.77
                   2. Amounts receivable                                  2 075.58        4 665.77

Current assets                                                        3 119 440.88    4 512 636.30
      VII.     Stocks and contracts in progress                         634 176.20      998 002.10
               A. Stocks                                                634 176.20      998 002.10
                   1. Raw materials and consumables                     495 821.64      590 851.42
                   2. Work in progress                                                   32 174.18
                   3. Finished goods                                    138 354.56      374 976.50
      VIII.    Amounts receivable within one year                     1 088 418.98      983 007.92
               A. Trade debtors                                         747 521.91      886 851.10
               B. Other amounts receivable                              340 897.07       96 156.82
      IX.      Investments                                            1 180 000.00    2 050 000.00
               B. Other investments and deposits                      1 180 000.00    2 050 000.00
      X.       Cash at bank and in hand                                 211 551.93      479 644.17
      XI.      Deferred charges and accrued income                        5 293.77        1 982.11




TOTAL ASSETS                                                          9 796 294.00   11 017 517.10




            I B t I annual report 2004          I p. 24
in EUROS
                                                                                       2004                  2003
LIABILITIES
Capital and reserves                                                            4 163 377.48         5 194 670.29
        I.     Capital                                                          4 433 288.13         4 349 624.07
               A. Issued capital                                                4 433 288.13         4 349 624.07
        II.    Share premium account                                           22 445 281.22        22 194 289.03
        IV.    Consolidated reserves                                         (22 985 504.15)      (21 750 741.44)
        VI.    Translation differences                                          (423 444.07)         (470 785.49)
        VII.   Investment grants                                                  693 756.35           872 284.12

Minority interests
        VIII.  Minority Interests                                                 25 000.00              25 000.00

Provisions, deferred tax and latent taxation liabilities                          20 000.00           757 385.00
        IX.    A. Provisions for liabilities and charges                          20 000.00           757 385.00
                   3. Major repairs and maintenance                                                    49 578.70
                   4. Other liabilities and charge                                20 000.00           707 806.30

Creditors                                                                      5 587 916.52         5 040 461.81
        X.     Amounts payable after one year                                  2 955 842.82         1 966 626.18
               A. Financial debts                                                517 527.35               228.66
                  3. Leasing and other similar obligations                       517 527.35               228.66
               B. Trade debts                                                    247 904.45
                  1. Suppliers                                                   247 904.45
               C. Advances received on contracts in progress                   1 507 715.70         1 657 372.45
               D. Other amounts payable                                          682 695.32           309 025.07
       XI.     Amounts payable within one year                                 2 593 677.70         3 016 820.49
               A. Current portion of amounts payable after one year              607 340.37           372 082.52
               B. Financial debts                                                920 000.00           450 000.00
                  1. Credit institutions                                         920 000.00           450 000.00
               C. Trade debts                                                    702 196.61         1 211 081.26
                  1. Suppliers                                                   702 196.61         1 211 081.26
               E. Amounts payable regarding taxes, remuneration and social       314 140.72           432 721.57
                  security
                  1. Taxes                                                        31 166.53            52 547.66
                  2. Remuneration and social security                            282 974.19           380 173.91
               F. Other amounts payable                                           50 000.00           550 935.14
       XII.    Accrued charges and deferred income                                38 396.00            57 015.14



TOTAL LIABILITIES                                                              9 796 294.00        11 017 517.10




              consolidated financial statement                 IBt I annual report 2004        I p. 25
Income statement

in EUROS
                                                                                            2004               2003

I.      Operating income                                                            6 008 896.18       6 893 919.37
        A.   Turnover                                                               4 602 748.86       5 625 343.16
        B.   Increase (+) decrease (-) in stocks of finished goods. work and           (60 604.84)        (49 980.81)
             contracts in progress
        C. In house production                                                         478 881.37         667 231.28
        D. Other operating income                                                      987 870.79         651 325.74
II.     Operating charges                                                          (7 458 923.18)    (10 542 352.80)
        A.   Raw materials, consumables and goods for resale                           954 323.67       2 006 744.10
             1. Purchase                                                               859 293.91       2 273 530.52
             2. Increase (-) decrease (+) in stocks                                     95 029.76       (266 786.42)
        B.   Services and other goods                                                2 043 593.17       2 853 154.65
        C. Remuneration, social security costs and pensions                          2 653 769.52       3 774 427.25
        D. Depreciation of and other amounts written off formation expenses,
             intangible and tangible fixed assets                                     1 567 392.06      1 708 531.42
        F.   Increase (+) decrease (-) in provisions for liabilities and charges       (49 578.70)
        G. Other operating charges                                                     289 423.46         199 495.38
III.    Operating loss                                                             (1 450 027.00)     (3 648 433.43)
IV.     Financial income                                                               363 680.63       1 107 160.44
        B.   Income from current assets                                                  19 698.44         40 450.67
        C. Other financial income                                                       343 982.19       1 066 709.77
V.      Financial charges                                                              (86 089.21)      (624 630.54)
        A.   Interests and other debt charges                                            68 264.15        133 519.37
        D. Other financial charges                                                        17 825.06        491 111.17
VI.     Profit on ordinary activities before taxation
        Loss on ordinary activities before taxation                                (1 172 435.58)     (3 165 903.53)
VII.    Extraordinary income                                                                              972 254.83
        F.   Other extraordinary income                                                                   972 254.83
VIII.   Extraordinary charges                                                         (62 327.13)     (1 169 997.36)
        A.   Extraordinary depreciation of and amounts written off formation           405 511.44         770 170.20
             expenses, intangible and tangible fixed assets
        D. Provisions for extraordinary liabilities and charges (increase +         (372 134.31)         399 827.16
             decrease -)
        F.   Other extraordinary charges                                               28 950.00
IX.     Profit for the financial period before taxation
        Loss for the financial period before taxation                               (1 234 762.71)     (3 363 646.06)
XII.    Profit for the financial period
        Loss for the financial period                                               (1 234 762.71)     (3 363 646.06)
XIV.    Consolidated profit
        Consolidated loss                                                          (1 234 762.71)     (3 363 646.06)
        A.   Share of third parties                                                   (57 659.21)         (7 388.87)
        B.   Share of the group                                                    (1 177 103.50)     (3 356 257.19)




             I B t I annual report 2004              I p. 26
Notes on the consolidated annual accounts


I. I. List of consolidated subsidiary companies



                                                                      Method          Proportion of       Change of percentage of
                                                                                       capital held      capital held (as compared
                                                                                                            to the previous period)

 International Brachytherapy Limited                                     G(1)                 100%                           100.00
 5th Floor - Kingsway 9
 WC2B6XF London
 United Kingdom

 International Brachytherapy, Inc.                                       G(1)                 100%                             0.00
 6000 Live Oak Parkway, Suite 107
 GA 3009 Norcross
 United States of America

 Urorad GmbH                                                             G(1)               50.50%                             0.00
 Normannenweg 11
 72355 Schömberg
 Germany

(1)
      consolidation by global integration



V. Consolidated criteria and changes in                                    The reciprocal accounts from the consolidated companies
   the consolidation scope                                                 have been eliminated (claims vs debt and expenses vs
                                                                           revenues) in order to only reflect transactions between the
A. Information and the criteria governing the application of               group and third parties.
      full consolidation, proportional consolidation and the equity
      method as well as those cases in which these criteria are         B. Information which makes a comparison meaningfull with
      departed from, and justification for such departures (pursuant        the consolidated annual accounts of the previous financial
      to Article 165, I. Of the Royal Decree of 30 January 2001 in         period in case the composition of the consolidated aggregate
      implementation of Company Law)                                       in the course of the current financial period has changed
                                                                           significantly (pursuant to Article 112 of aforementioned
      The group controlled by IBt has been consolidated on a global        Royal Decree)
      integration basis. The auditors of the subsidiary companies
      have audited the balance sheet and the income statement              The results of IBt Ltd, a new 100% wholly owned subsidiary
      using their accounting standards. The annual accounts of             of IBt s.a., have been consolidated for the first time in
      the group follow the valuation rules of the parent company.          2004.




                    consolidated financial statement                   IBt I annual report 2004               I p. 27
VIII. Statement of intangible assets


                                                                                            1. Research and     2. Concessions,
                                                                                                development    patents, licenses,
in EUROS                                                                                           expenses                  etc.

        A.     Acquisition cost
               As at the end of the preceding period                                           2 625 926.78          664 587.52
               Movements during the period
                    Acquisitions, including fixed assets; own production                          520 785.11
                    Translation differences                                                                          (12 305.54)
               At the end of the period                                                        3 146 711.89          652 281.98
        C.     Depreciation and amounts written down
               As at the end of the preceding period                                           1 640 820.24          585 547.87
               Movements during the period:
                    Recorded                                                                    388 043.77             28 227.67
                    Translation differences                                                                          (10 600.97)
               At the end of the period                                                        2 028 864.01          603 174.57
        D.     Net carrying value at the end of the period                                     1 117 847.88            49 107.41

IX.     Statement of tangible fixed assets

                                                                             1. Land and          2. Plant,     3. Furniture and
                                                                                buildings    machinery and              vehicles
 in EUROS                                                                                       equipment

        A.     Acquisition cost
               As at the end of the preceding period                        4 660 573.20       8 668 938.00          612 010.73
               Movements during the period
                    Acquisitions, including fixed assets; own construction                       560 910.26            76 480.34
                    Sales and disposals                                       55 000.00
                    Translation differences                                                       (5 933.70)         (17 108.17)
               At the end of the period                                     4 715 573.20       9 223 914.56          671 382.90
        C.     Depreciation and amounts written down
               At the end of the period                                     2 001 303.87       6 108 544.90          481 976.69
               Movements during the period
                    Recorded                                                 262 676.29        1 179 259.69            62 024.25
                    Translation differences                                                                          (12 349.03)
               At the end of the period                                     2 263 980.16       7 287 804.59          531 651.91
        D.     Net carrying value at the end of the period                  2 451 593.04       1 936 109.97          139 730.99




             I B t I annual report 2004             I p. 28
                                                                            4. Leasing and            5. Other    6. Assets under
                                                                               other similar   tangible assets        construction
                                                                                      rights                         and advance
in EUROS                                                                                                                payments

      A.     Acquisition cost
             As at the end of the preceding period                               72 919.88         22 348.32           55 000.00
             Movements during the period
                 Acquisitions, including fixed assets; own construction       1 003 327.35
                 Transfers from one heading to another                                                                (55 000.00)
                 Translation differences                                        (4 011.97)
             At the end of the period                                        1 072 235.26          22 348.32
      C.     Depreciation and amounts written down
             As at the end of the preceding period                               47 637.15         16 258.68
             Movements during the period
                 Recorded                                                       50 433.12            2 238.71
                 Translation differences                                        (2 372.33)
             At the end of the period                                           95 697.94          18 497.39
      D.     Net carrying value at the end of the period                       976 537.32           3 850.93
             of which:
                 Plant, machinery and equipment                                959 235.36
                 Furniture and vehicles                                         17 301.96

X.    Statement of Financial fixed assets


in EUROS                                                                                                         Other companies

      2.     Amounts receivable
             Net carrying value at the end of the previous period                                                       4 665.77
             Movements during the period
                Reimbursements                                                                                         (2 300.00)
                Translation differences                                                                                  (290.19)
             Net carrying value at the end of the period                                                                 2 075.58

XI.   Statement of consolidated reserves
en EUR
in EUROS                                                                                                         Other companies

             Consolidated reserves at the end of the previous financial                                            (21 750 741.44)
             period
             Movements
                Shares of the group in the consolidated income                                                     (1 177 103.50)
                Other movements                                                                                       (57 659.21)
             Consolidated reserves at the end of the financial period                                              (22 985 504.15)




           consolidated financial statement                         IBt I annual report 2004           I p. 29
XIII. Statement of amounts payable

     A.    Analysis of the amounts originally payable after one year according to their residual term

                                                                            1. Amounts payable          2. Amounts payable
                                                                            with a residual term        with a residual term
                                                                             of not more than 1         of between 1 and 5
in EUROS                                                                                    year                      years

           Financial debts                                                           189 070.18                 517 527.35
              3. Leasing and other similar obligations                               189 070.18                 517 527.35
           Trade debts                                                               257 413.55                 247 904.45
              1. Suppliers                                                           257 413.55                 247 904.45
           Advances received on contracts in progress                                 52 750.00               1 507 715.70
           Other amounts payable                                                     108 106.64                 682 695.32

     TOTAL                                                                           607 340.37               2 955 842.82




            I B t I annual report 2004             I p. 30
Valuation rules


1. General principles


The valuation rules are determined according to the Royal Decree of January 30, 2001. Neither the wording nor the application of the
valuation rules have changed since the previous financial period, except for the valuation of the stock of finished products.


2. Special provisions


Formation expenses: in principle, formation expenses are charged against income. Until the end of 2001 constitution costs linked to
the stock market flotation and the issue of the convertible bond, as well as expenses related to capital increases occasioned by the
conversion of bonds prior to redemption, were capitalized and then amortized over three years. Since then, these costs have been
immediately charged against income.
Intangible assets: Patents are recorded as assets based on their acquisition price and then amortized over the 20-year legal protection
period. Any additions to the cost of purchasing a patent are amortized over the remaining patent life.
Tangible fixed assets: Financial fixed assets are valued at their purchase price.


 Assets                                                                Method          Rate in %

 1. Formation expenses
          Constitution                                                 L               33
          Other                                                        L               33
 2. Intangible assets
          Patents                                                      L               5
          R&D expenses                                                 L               20
 3. Buildings                                                          D               5
 4. Plant, machinery and equipment (1) (2)                             D               10
 5. Vehicles(1)                                                        L               25
 6. Office equipment and furniture
          IT equipment                                                 L               20
          Other equipment                                              D               20


Method: L = straight-line; D = declining balance

(1) including leased assets
(2) depreciation is applied pro rata temporis from installation date




Financial fixed assets: participating interests are valued at their acquisition cost. No revaluation has taken place until now.
Stock of finished products: finished products are recorded in the balance sheet at production cost. Products which, owing to radioactive
decay, can no longer be sold are written off using the same value.
Debt: there are no long-term debts at zero or at unusually low interest rates.
Currencies:
assets and liabilities denominated in foreign currencies are converted into EUR as follows:
- Participations and fixed assets (tangible and intangible): at the time of acquisition, the currency amounts are definitively converted
 into EUR and a purchase price in EUR attributed to the asset
- Commercial and other receivables: these are converted immediately at the prevailing rate on their creation date. On the inventory
 date they are converted at the closing exchange rate. Upon collection they are converted at the then prevailing rate. The exchange
 rate differences resulting from these operations are recorded as exchange rate differences or as translation differences. Where the
 receivable is covered by a forward operation, the cover rate is applied.




                                                valuation rules                 IBt I annual report 2004        I p. 31
Statutory auditor’s report


STATUTORY A UDI TO R’ S REPO RT O N THE C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S F O R T H E
YEAR ENDED 31 DECEM BER 2004 TO THE S H A R E H O L D E R S ’ M E E T I N G O F S . A . I N T E R N AT I O N A L
BRACHYTHE RAPY ( I BT)



In accordance with legal and statutory requirements, we           made by management, as well as evaluating the overall
are pleased to report to you on the performance of the audit      consolidated financial statement presentation. We believe that
mandate which you have entrusted to us.                           our audit provides a reasonable basis for our opinion.


We have audited the consolidated financial statements as of        In our opinion the consolidated financial statements give a
and for the year ended 31 december 2004. which have been          true and fair view of the group’s assets, liabilities, consolidated
prepared under the responsibility of the board of directors and   financial position as of 31 december 2004 and the consolidated
which show a balance sheet total of EUR 9.796.294,00 and a        results of its operations for the year then ended, in accordance
consolidated loss for the year of EUR 1.234.762,71 (the part      with the legal and regulatory requirements applicable in Belgium
of the group amounts to EUR 1.177.103,50). We have also           and the information given in the notes to the consolidated
examined the consolidated directors’ report.                      financial statements is adequate.
                                                                  During the previous year, the group has again incurred losses.
                                                                  The Board of directors has prepared the financial consolidated
Unqualified audit opinion on the                                  statements assuming the continuity of the activities of the
consolidated financial statements with an
                                                                  company. In view of its justification of the continuity of the
emphasis of matter paragraph
                                                                  operations, management has furnished us with forward-looking
We conducted our audit in accordance with the standards           statements at the level of the mother company in relation to the
of the “Institut des Reviseurs d’Entreprises/Instituut der        operations and the treasury for a period up to the end of 2005
Bedrijfsrevisoren”. Those standards require that we plan          as well as an explanation related to the period thereafter. By
and perform the audit to obtain reasonable assurance about        means of prudence, management prepared these statements
whether the consolidated financial statements are free of          based on a growth of the revenues taking into account the
material misstatement, taking into account the legal and          recorded sales in Europe during 2004 and the expected growth
regulatory requirements applicable to consolidated financial       resulting from the renewal of an important distribution contract
statements in Belgium.                                            in Europe, without taking into account the total savings or the
                                                                  realisable gains of productivity on the cost side. Based on
In accordance with those standards, we considered the             these statements, the assumption of continuity is only justified
group’s administrative and accounting organisation, as well as    to the extent that the group continues to receive financial
its internal control procedures. We have obtained explanations    support from its shareholders or has access to other financial
and information required for our audit. An audit includes         sources for financing the operations and the contractual due
examining, on a test basis, evidence supporting the amounts       dates of the actual loans and leasing debts. Without derogation
and disclosures in the consolidated financial statements. An       from the opinion as expressed above, we draw your attention
audit also includes assessing accounting principles used, the     to the director’s report where, in accordance with Belgian legal
basis for consolidation and significant accounting estimates       requirements, the Board of Directors justifies the application




              I B t I annual report 2004              I p. 32
of the valuation rules applied in view of the continuity of the    • The consolidated directors’ report contains the information
operations. No adjustments have been recorded in relation           required by law and is consistent with the consolidated
to the valuation or the classification of certain balances of the    financial statements.
balance sheet, which would seem necessary in case the group
would not be able to continue its activities.




Other certification                                                                                       Antwerp, 3 May 2005


We supplement our report with the following certification, which                        Clybouw Reviseurs d’entreprises scprl
do not modify our audit opinion on the consolidated financial           represented by André Clybouw, reviseur de banque et
statements:                                                                                       d’entreprises, Commissaire




                           statutory auditor ’s report             IBt I annual report 2004             I p. 33
IBt s.a. Non-Consolidated Accounts
                                                                        as at 31 december 2004


The IBt s.a. non-consolidated statements are presented hereafter in a summarized format. Following the requirements of the «Code
des Sociétés», the management report together with the Auditor’s report and the annual accounts with notes will be filed with the
Belgian National Bank after their approval by the shareholders during the General Assembly of June 6, 2005. A copy of the non
consolidated statements can be obtained on request. An «unqualified audit opinion on the financial statements with emphasis of
matter paragraph» has been issued by the Auditor of the company.




IBt s.a. Balance Sheet (after appropriation)

in EUROS
                                                                                             2004                      2003
ASSETS
Fixed assets                                                                         6 527 252.05              6 310 527.35
       II.      Intangible assets                                                    1 060 573.28                911 730.66
       III.     Tangible assets                                                      5 413 180.38              5 372 216.74
                A. Land and buildings                                                2 451 593.04              2 659 269.33
                B. Plant, machinery and equipment                                    1 936 108.97              2 554 458.40
                C. Furniture and vehicles                                               61 250.97                 94 653.23
                D. Leasing and other similar rights                                    960 376.47                  2 746.14
                E. Other tangible assets                                                 3 850.93                  6 089.64
                F. Assets under construction and advance payments                                                 55 000.00
        IV.     Financial assets                                                        53 498.39                 26 579.95
                A. Affiliated enterprises                                                52 821.14                 25 902.70
                    1. Participating interest                                           27 321.14                 25 902.70
                    2 Amounts                                                           25 500.00
                C. Other financial assets                                                   677.25                    677.25
                    2. Amounts receivable and cash guarantees                              677.25                    677.25

Current assets                                                                       2 969 886.97              3 658 585.12
      VI.      Stocks and contracts in progress                                        606 158.94                767 789.26
               A. Stocks                                                               606 158.94                767 789.26
                   1. Raw materials and consumables                                    495 821.64                590 851.42
                   2. Work in progress                                                                            32 174.18
                   3. Finished goods                                                   110 337.30                144 763.66
      VII.     Amounts receivable within one year                                    1 063 746.94                452 205.25
               A. Trade debtors                                                        730 194.98                307 992.29
               B. Other amounts receivable                                             333 551.96                144 212.96
      VIII.    Investments                                                           1 180 000.00              2 050 000.00
               B. Other investments and deposits                                     1 180 000.00              2 050 000.00
      IX.      Cash at bank and in hand                                                117 663.81                385 333.50
      X.       Deferred charges and accrued income                                       2 317.28                  3 257.11




TOTAL ASSETS                                                                         9 497 139.02              9 969 112.47




              I B t I annual report 2004           I p. 34
in EUROS
                                                                                      2004                 2003
LIABILITIES
Capital and reserves                                                          5 007 610.57         5 835 630.10
        I.     Capital                                                        4 433 288.13         4 349 624.07
               A. Issued capital                                              4 433 288.13         4 349 624.07
        II.    Share premium account                                         22 445 281.22        22 194 289.03
        V.     Profit carried forward
               Loss carried forward                                         (22 564 715.13)      (21 580 567.12)
        VI.    Investment grants                                                 693 756.35           872 284.12

Provisions and deferred tax                                                      20 000.00           508 827.70
       VII.   A. Provisions for liabilities nd charges                           20 000.00           508 827.70
                  3. Major repairs and maintenance                                                    49 578.70
                  4. Other liabilities and charges                               20 000.00           459 249.00

Creditors                                                                     4 469 528.45         3 624 654.67
       VIII.   Amounts payable after more than one year                       1 803 817.09           717 571.88
               A. Financial debts                                               517 527.35               228.66
                  3. Leasing and other similar obligations                      517 527.35               228.66
               B. Trade debts                                                   247 904.45
                  1. Suppliers                                                  247 904.45
               C. Advances received on contracts in progress                    355 689.97           415 439.97
               D. Other amounts payable                                         682 695.32           301 903.25
       IX.     Amounts payable within one year                                2 633 541.76         2 878 936.57
               A. Current portion of amounts payable after one year             607 340.37           372 082.52
               B. Financial debts                                               920 000.00           450 000.00
                  1. Credit institutions                                        920 000.00           450 000.00
               C. Trade debts                                                   755 739.88         1 094 894.04
                  1. Suppliers                                                  755 739.88         1 094 894.04
               E. Taxes, remuneration and social security                       299 043.07           414 264.12
                  1. Taxes                                                       25 360.63            49 223.46
                  2. Remuneration and social security                           273 682.44           365 040.66
               F. Other amounts payable                                          51 418.44           547 695.89
       X.      Accrued charges and deferred income                               32 169.60            28 146.22



TOTAL LIABILITIES                                                             9 497 139.02         9 969 112.47




                    non-consolidated accounts                    IBt I annual report 2004     I p. 35
Income statement

in EUROS
                                                                                                       2004              2003

I.      Operating income                                                                       5 328 717.71      6 382 869.63
        A.     Turnover                                                                        3 936 848.46      5 140 422.44
        B.     Increase (+) decrease (-) in stocks of finished goods, work and contracts in       (66 600.54)        40 531.86
               progress
        C.     In house production                                                                478 881.37        592 895.00
        D.     Other operating income                                                             979 588.42        609 020.33
II.     Operating charges                                                                     (6 598 954.85)   (11 912 928.61)
        A.     Raw materials, consumables and goods for resale                                    944 370.41      1 936 340.84
               1. Purchase                                                                        849 340.63      2 203 100.38
               2. Increase (-) decrease (+) in stocks                                              95 029.78      (266 759.54)
        B.     Services and other goods                                                         1 592 381.29      2 193 806.12
        C.     Remuneration, social security costs and pensions                                 2 332 698.10      2 847 460.94
        D.     Depreciation of and other amounts written off formation expenses, intangible
               and tangible fixed assets                                                        1 492 530.87      1 636 067.95
        E.     Increase (+) decrease (-) in amountd witten of stocks, contracts in progress
               and trade debtors                                                                                 3 109 901.58
        F.     Increase (+) decrease (-) in provisions for liabilities and charges              (49 578.70)
        G.     Other operating charges                                                          286 552.88         189 351.18
III.    Operating profit
        Operating loss                                                                        (1 270 237.14)    (5 530 058.98)
IV.     Financial income                                                                          363 124.96      1 108 289.87
        B.     Income from current assets                                                          19 142.77         40 306.54
        C.     Other financial income                                                              343 982.19      1 067 983.33
V.      Financial charges                                                                        (81 823.39)    (1 419 811.17)
        A.     Interests and other debt charges                                                    66 734.15        128 883.10
        C.     Other financial charges                                                              15 089.24      1 290 928.07
VI.     Profit on ordinary activities before taxation
        Loss on ordinary activities before taxation                                            (988 935.57)     (5 841 580.28)
VII.    Extraordinary income                                                                                        972 254.83
        D.     Gain on disposal of fixed assets
        E.     Other extraordinary income                                                                          972 254.83
VIII.   Extraordinary charges                                                                      4 787.56      (921 440.06)
        A.     Extraordinary depreciation of and extraordinary amounts written off
               formation expenses, intangible and tangible fixed assets                           405 511.44        770 170.20
        C.     Provisions for extraordinary liabilities and charges (increase + decrease -)    (439 249.00)        151 269.86
        E.     Other extraordinary charges                                                        28 950.00
IX.     Profit for the period before taxes
        Loss for the period before taxes                                                       (984 148.01)     (5 790 765.51)
XI.     Profit for the financial period
        Loss for the financial period                                                           (984 148.01)     (5 790 765.51)
XIII.   Profit for the period available for appropriation
        Loss for the period available for appropriation                                        (984 148.01)     (5 790 765.51)




            I B t I annual report 2004             I p. 36
 in EUROS
                                                                                                            2004                2003
Appropriation account


         A.      Loss to be appropriated                                                          (22 564 715.13)    (21 580 567.12)
                 1.   Loss for the period available for appropriation                                (984 148.01)     (5 790 765.51)
                 2.   Loss brought forward                                                        (21 580 567.12)    (15 789 801.61)
         D.      Result to be carried forward
                 2.   Loss to be carried forward                                                   22 564 715.13      21 580 567.12



Valuation Rules

The valuations rules used for the non-consolidated financial statements annual of IBt s.a. are identical to the ones used for the
consolidated statements




Notes (extracts) and comments:

Statement of Financial Fixed Assets


Participating interests and rights in other companies
List of the companies in which the enterprise holds a participating interest, within the meaning of the Royal Decree of October 8, 1976
(recorded in the heading 280 and 282 of the assets), and other companies in which IBt s.a. holds rights (recorded in the heading 284
and 51/53) of the assets) in the amount of at least 10 % of the capital issued


                                                                                  Number of shares held                            %


 IBt Inc. (International Brachytherapy, Incorporated)                                                500                       100%
 6000 Live Oak Parkway, Suite 107
 GA 3009 Norcross Georgia) United States of America


 IBt Ltd. (International Brachytherapy, Limited)                                                    1000                       100%
 Kingsway, 9 – 5th floor
 WC2B6XF London
 United Kingdom


 Urorad GmbH.                                                                                        510                     50.50%
 Normannenweg, 11
 72355 Schömberg, Germany




                       non-consolidated accounts                        IBt I annual report 2004              I p. 37
Statement of Capital

 in EUROS
                                                                                                   2004
                                                                                            Amounts     Number of shares


         A.     Capital
                1. Issued capital
                   At the end of the preceding period                                    4 349 624.07
                   Changes during the period
                          Exercice of Warrants                                              83 664.06             135 000
                   At the end of the period                                              4 433 288.13
                2. Structure of the capital
                   2.1    Different categories of shares
                          A shares                                                         132 623.04             214 000
                          B shares                                                       4 300 665.09           6 939 536
                   2.2    Registered shares and bearer shares
                          Registered                                                                              927 293
                          Bearer                                                                                6 226 243
         D.     Commitments to issue shares
                   Number of outstanding subscription rights                                                    3 805 218
                   Amount of capital to be issued                                        2 358 222.26
                   Maximum number of shares to be issued                                                        3 805 218
         E.     Amount of authorized capital, not issued                                 2 769 041.93




Comments

(1) subscription rights:
The total of 3.805.218 warrants mentioned hereabove is to be split as follows:
        - 1 280 000      warrants A with a strike price of 2.48 EUR
        - 203 000        warrants B with a strike price of 2.85 EUR
        - 2 123 818      warrants C with a strike price of 3.22 EUR
        - 198 400        warrants D with a strike price between 3.81 EUR and 13.99 EUR
(note: warrants E have expired in October 2001 and warrants F in October 2004)
Exercise period:
  - warrants A can be exercised until December 2005
  - warrants B and C can be exercised until December 2006
  - warrants D have a number of exercising periods with the later one in 2009.


(2) amount of authorized capital
As detailed here above, the Board of Directors has not used the «authorized capital mechanism» towards the year 2004. As at
December 31, 2004, the authorized capital amounted to EUR 2 769 041.93




              I B t I annual report 2004           I p. 38
XII.   Social Report
                                                                                         2004                     2003


       Number of employed persons recorded in the personnel register
       a)   Total number at the closing date                                               50                       61
       b)   Average number of employees in full-time equivalents                         47.7                     58.7
       c)   number of actual working hours                                             67 228                   92 913


       Personnel charges (in EUROS)


       a)   Remuneration and direct social benefits                                1 639 145.05             1 800 385.71
       b)   Employers’ contribution for social security                            508 686.20               624 260.29
       c)   Employers’ premium for extra statutory insurance                        83 440.70                82 935.12
       d)   Other personnel charges                                                101 426.15               339 879.82


       Temporary personnel
       Total number at the closing date                                                     0                       12
       Average number of employees in full-time equivalents                                0.2                      5.6
       Number of actual working hours                                                     433                   11 146
       Charges to the company (in EUROS)                                              9 490.23              258 101.45




                       non-consolidated accounts                   IBt I annual report 2004      I p. 39
IFRS/IAS standards




Like other listed companies, IBt will, from 2005 onwards,           - accounting for government aids and subsidies (IAS 20)
prepare its interim and annual consolidated financial statements     - provisions (IAS 37)
based on the new European reference accounting framework,           - intangible assets (IAS 38)
consisting of the International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS) and the          The overall effect of the various restatements is expected to be
interpretations issued by the IASB’s Standing Interpretations       to increase the group’s equity.
Committee (SIC).
                                                                    The company is actively working to convert its consolidated
The IFRS standards differ very significantly from Belgian            financial statements from Belgian GAAP to IFRS standards.
accounting principles on a number of points. The IFRS standards     The conversion of the accounts and the presentation of the
will have a major impact on IBt in the following areas:             opening balance as of January 1, 2004 are nearing completion
- deferred taxation (IAS 12)                                        and will be presented no later than the results for the first half
- tangible fixed assets (IAS 16)                                     of 2005.




               I B t I annual report 2004                 I p. 40
IBt s.a.                                         Für Deutschland:
Zone Industrielle C                              Urorad GmbH
7180 Seneffe - Belgium                           Normannenweg 11
Tel: +32 (0)64 520 811                           72355 Schömberg - Deutschland
Fax: +32 (0)64 520 801                           Tel: +49 (0)173 9386 315
E-mail: ibt@brachytherapy.be                     Fax: +49 (0)7427 942 789
Site Internet: www.ibt.be                        E-mail: info@urorad.de

For the USA:                                     For the United Kingdom & Ireland:
IBt, Inc.                                        IBt Ltd
6000 Live Oak Parkway, Suite 107                 UK
Norcross, GA 30093 - USA                         Tel: +44 (0)1633 896852
Tel: + 1-800-611-8118                            Fax: +44 (0)1633 896385
Fax: +1-770-582-0657                             E-mail: paulevansibt@btinternet.com
E-mail: info@ibt4seeds.com




Ce rapport annuel est également disponible en version française
ainsi que sur le site Internet: www.ibt.be

Realisation and production: Comfi&Publishing - www.comfi.be

Photos: Philippe D. and Dimitri Lowette




IBt
I B t I annual r epor t 2004
          IBt s.a.

    Zone Industrielle C

       7180 Seneffe

          Belgium




   Tel: +32 (0)64 520 811

   Fax: +32 (0)64 520 801

e-mail: ibt@brachytherapy.be

        www.ibt.be

				
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