Monash Ivf Group Ltd · ASX:MVF
Monash Ivf — FY2020 Earnings Presentation
30 slides from Monash Ivf's earnings presentation, Aug 24, 2020
Slide 1: FY20 Results Presentation
Sample title Sample subtitle, you can add a custom image on the right by Lets be brave clicking the image icon together… FY20 Results Presentation 24 August 2020 Monash IVF Group Limited ACN 169 302 309 1
Slide 2: Disclaimer
Disclaimer The presentation has been prepared by Monash IVF Group Limited (ACN 169 302 309) (“MVF”) (including its subsidiaries, affiliates and associated companies) and provides general background information about MVF’s activities as at the date of this presentation. The information does not purpo
Slide 3: FY20 Executive Summary
Update last FY20 Executive Summary $14.4m Adjusted NPAT(1)(2) is above $14m guidance provided on 29 June 2020 (reported NPAT of $11.7m(3)); $3.9m adverse NPAT impact during March to June 2020 compared to pcp due predominately to COVID-19 temporary shutdown; Recovery from temporary suspension o
Slide 4: FY20 Financial Summary
FY20 Financial Summary Operating performance impacted by COVID-19 disruption and departure of specialists in Victoria Note: Financial metrics include impact from COVID-19 and AASB16 Leases Adjusted Reported Revenue EBITDA(1)(2)(3)(5) EBITDA(2)(3) $145.4m $34.8m $32.8m FY19 $152.0m FY19 $37.8m FY19 $
Slide 5: COVID-19 and trading recovery summary
COVID-19 and trading recovery summary On 25 March 2020, National Cabinet acting on the advice of Australian Health Protection Principal Committee temporarily suspended all non-urgent elective surgery, including IVF procedures; On 21 April 2020, National Cabinet announced that certain elective su
Slide 6: COVID-19 and trading recovery summary (continued)
COVID-19 and trading recovery summary (continued) Following recommencement of IVF services in Australia, stimulated cycles increased by 34.3% between 18 May and 30 June 2020 compared to pcp, with 32.1% growth continuing into July 2020; Kuala Lumpur is in recovery following easing of the Movement
Slide 7: Financial overview
Financial overview Monash IVF Group | FY20 Results 7
Slide 8: FY20 Revenue Analysis
FY20 Revenue Analysis Revenue was impacted by the disruption created by COVID-19 and the departure of fertility specialists in Victoria 151 3.5 147 2.1 $M 5.7 3.3 152.0 0.2 1.7 143 145.4 139 FY19 MVF February YTD MVF Domestic March ARS Price Fertility Solutions & MVF Malaysia March Ultrasound, FY20
Slide 9: FY20 Profit and Loss Overview
FY20 Profit and Loss Overview Whilst COVID-19 has disrupted operations since March 2020, the Group is well positioned to grow earnings going into FY21 with strong recovery in June and July 2020 across all markets with increased marketing investment $m FY20 FY19 % change $14.4m FY20 Adjusted NPAT(1
Slide 10: Earnings reconciliation
Earnings reconciliation The below provides a reconciliation of earnings adjusted for certain non-regular items $m EBITDA(1) EBIT NPAT(2) Reported Statutory 32.8 21.8 11.7 1H20 non-regular items 1.7 1.7 1.2 Restructuring costs applicable to our cost reduction program 0.3 0.3 0.2 Acquisitions costs 0.
Slide 11: Capital Management Overview
Capital Management Overview The Balance Sheet is well positioned to pursue organic and non-organic growth opportunities and navigate through any future COVID-19 developments 30-Jun 30-Jun % $80m Equity Raising has resulted in: Balance Sheet ($m) 2020 2019 change • Stronger balance sheet and reduct
Slide 12: Cash Flow Overview
Cash Flow Overview Strong conversion of pre-tax EBITDA to operating cash flow supported further investment into future growth activities $m FY20 FY19 % change Pre-tax conversion of EBITDA to operating Reported EBITDA 32.8 36.4 (9.9%) cash flow was strong at 107.9% following 78.0% conversion at 31
Slide 13: Operational overview
Operational overview Monash IVF Group | FY20 Results 13
Slide 14: Impact of COVID-19 – MVF domestic stimulated cycles
Impact of COVID-19 – MVF domestic stimulated cycles(1) Resilience demonstrated through the recovery reconfirms our best-in-class market positioning Monash IVF Stimulated Cycles(1) growth by quarter (vs. pcp) Monash IVF monthly Stimulated Cycles(1) 5% 1.6% 0% Q1 Q2 Q3 Q4 -0.8% -5% -4.8% -10% -15% Q3F
Slide 15: ARS Australia – MVF Volumes
ARS Australia – MVF Volumes Domestic Stimulated Cycles(1) declined by 5.6%, largely driven by COVID-19 and departure(3) of specialists FY20 Stimulated Cycles(1) declined by 5.6% reflecting: 10.1% increase in South Australian cycles February Stimulated Cycles(1) 2020 YTD resulting in market share
Slide 16: ARS Australia – MVF Share
ARS Australia – MVF Share MVF Key Markets(1) market share is largely consistent with pcp not withstanding departure of specialists(4) in Victoria Key Markets(1) Market Share Key Markets(1) Market Share Stimulated Cycles(2) Frozen Embryos(3) 20.4% 18.7% FY19 20.6% FY19 20.3% Down 0.2% Down 1.6% Austr
Slide 17: ARS Australia Market – COVID-19 Recovery
ARS Australia Market – COVID-19 Recovery Industry stimulated cycle volumes heavily impact by COVID-19 disruption in April and May Key Markets(2) COVID-19 Stimulated Cycles(1) impact by Number of Australian Stimulated Cycles(1) per annum Month 43,000 42,212 4,000 42,000 3,500 41,000 40,115 40,147 3,0
Slide 18: ARS Australia – Operational Performance
ARS Australia – Operational Performance Scientific advancements continue to differentiate our value proposition to patients Scientific advancements continue to differentiate our value proposition to patients; Improved success rates and preparation for national reporting guidelines and framework;
Slide 19: ARS Australia – Operational Performance
ARS Australia – Operational Performance Monash IVF’s strong and established market position makes it an attractive proposition to fertility specialists in these uncertain times All 24 Victorian fertility specialists are now contracted with more than 97% of specialists contracted across the Group;
Slide 20: ARS Australia – Operational Performance
ARS Australia – Operational Performance Continued to invest in our clinic infrastructure to support our full service value proposition New Sydney CBD flagship clinic commenced construction in June and due to open during Q2FY20; New Sydney CBD flagship clinic will represent best practice patient
Slide 21: ARS Australia – Operational Performance
ARS Australia – Operational Performance Patient experience principle remains focussed on care, empathy, support, empowerment and a consistent patient journey throughout our network of clinics Patient Successfully maintained patient engagement during temporary suspension of services which Experie
Slide 22: ARS Australia – Brand & Marketing
ARS Australia – Brand & Marketing Investment in innovative marketing underpins strong patient pipeline leading into FY21 New “Brave Together” advertising campaign illustrates innovative marketing investment following the recommencement of services during Q4FY20. The advertising campaign reflects o
Slide 23: Diagnostics Performance
Diagnostics Performance The ultrasound business continues to be resilient and has operated throughout COVID-19 Ultrasound clinics remained open throughout Q4FY20; Total scans across the Group increased by 1.8% to 82,311 compared to pcp and NIPT(1) increased by 2.9% to 13,478; Scan volumes were
Slide 24: ARS International Performance
ARS International Performance Early signs of recovery in Kuala Lumpur activity is emerging following easing of movement control order (MCO) restrictions in place Kuala Lumpur was heavily impacted by Movement Control Order (MCO) effective 27 March resulting in a 58% decline in March to May stimulat
Slide 25: Strategy and Outlook
Strategy and Outlook Monash IVF Group | FY20 Results 25
Slide 26: Monash IVF Group | FY20 Results
Monash IVF Group | FY20 Results 26
Slide 27: FY21 Strategy and Outlook
FY21 Strategy and Outlook Industry fundamentals remain strong as the community seeks assistance when trying to conceive which has not changed due to the on-going Pandemic. The Group’s strong balance sheet positions it well to navigate through the COVID-19 Pandemic and optimise future earnings throug
Slide 28: Appendices
Appendices Monash IVF Group | FY20 Results 28
Slide 29: Treatment mix
Treatment mix IVF Treatment numbers FY20 FY19 % change Monash IVF Group – Australia Stimulated cycles 7,181 7,607 (5.6%) Cancelled cycles 674 732 (7.9%) Frozen embryo transfers 5,294 5,584 (5.2%) Total Australian Patient Treatments 13,149 13,923 (5.6%) Monash IVF Group – International Stimulated cyc
Slide 30: Overview of Monash IVF Group
Overview of Monash IVF Group1 Monash IVF Group is a market leader in fertility ARS Diagnostic Ultrasound 25 clinics 2 specialised 17 clinics laboratories (VIC and 3 service centres SA) 18 Sonologists 103 Fertility Specialists 4 Australian states 2 day hospitals (SA & 7 Australian M