Monash Ivf Group Ltd · ASX:MVF
Monash Ivf — H1 2020 Earnings Presentation
26 slides from Monash Ivf's earnings presentation, Feb 21, 2020
Slide 1: FY20 Half Year Results Presentation
Sample title Sample subtitle, you can add a custom image on the right by Growing stronger clicking the image icon together… FY20 Half Year Results Presentation 21 February 2020 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: 1H20 Executive Summary
1H20 Executive Summary $9.1m Adjusted NPAT(1) marginally above guidance Foundation set for the future as fundamentals remain strong, new specialists attracted and investment into future growth 1H20 Revenue largely maintained (down $0.2m) not withstanding specialist departures as we diversify o
Slide 4: 1H20 Financial Summary
1H20 Financial Summary 1H20 Revenue largely maintained not withstanding specialist departures as we diversify our income streams Adjusted Reported Revenue EBITDA(1)(3) EBITDA(1)(2)(3) $77.0m $16.8m $18.2m 1H19 $77.2m 1H19 $19.3m 1H19 $18.7m ( 0.2%) ( 13.0%) ( 2.8%) Adjusted Adjusted Dividends EBI
Slide 5: ARS Australia - Operational Performance
ARS Australia - Operational Performance Investment in Scientific capability continues as we focus on best possible outcomes for our Patients Scientific advancements continue to differentiate our value proposition to patients Non-invasive pre-implantation genetic screening technology (NIPGT) has
Slide 6: ARS Australia - Operational Performance
ARS Australia - Operational Performance Continued progress and investment in our operational and strategic initiatives All 24 Victorian fertility specialists are now contracted with more than 96% of specialists contracted across the Group Foundations are strong with 13 specialists currently in o
Slide 7: ARS Australia - Operational Performance
ARS Australia - Operational Performance Continued progress and investment in our operational and strategic initiatives New Sydney CBD flagship clinic on track to open in late June representing best practice patient experience and is a key Sydney initiative to attract new specialists and support ou
Slide 8: ARS Australia - Operational Performance
ARS Australia - Operational Performance Continued progress and investment in our operational and strategic initiatives Patient experience principles remain focussed on care, empathy, support and consistency as validated through our Net Promotor Score measuring tool Patient Patient centred design
Slide 9: ARS Australia – MVF Volumes
ARS Australia – MVF Volumes Full Service Stimulated Cycle(1) growth was solid prior to impact from specialist departures Group Organic Stimulated Cycles(1) (excluding specialist departures) grew by 0.5% compared to pcp and above our Key Markets(3) Stimulated Cycles(1) 3,872 South Australia achie
Slide 10: ARS Australia – Market Growth
ARS Australia – Market Growth 2.6% Stimulated Cycle(1) growth in Key Markets(2) during CY19 and inline with long-term growth rates of ~2% Stimulated Cycle(1) Growth Rates in our Key Markets(2) Number of Australian Stimulated Cycles(1) per annum 44,000 42,643 8.0% 6.5% 6.3% 42,000 40,952 40,792 6.0%
Slide 11: ARS Australia – Market Share
ARS Australia – Market Share Market share growth achieved in Key Market(1) Stimulated Cycles(2) (excluding impact from specialist departure) Key Markets(1) Market Share Key Markets(1) Market Share Stimulated Cycles(2) Frozen Embryos(3) 19.6% 20.2% 1H19 20.1% 1H19 22.1% Down 0.5% Down 1.9% Australian
Slide 12: Diagnostics Performance
Diagnostics Performance Ultrasound Business stabilised and there has been rapid take up of our world first NIPGT(1) technology across our clinic network Sydney Ultrasound Transformation review progressing as total scans across the Group grew by 2.3% from 38,633 to 39,525 after declines in pcp Ne
Slide 13: ARS International Performance
ARS International Performance KL Business returns to growth in Q2 after a weak Q1 and further progress has been made to grow in the Asia Pacific region Malaysian Stimulated Cycles declined by 16 or 3.1% due to macroeconomic conditions and tax relief for IVF treatments expected in CY2020 Revenue
Slide 14: Financial Overview
Financial Overview Monash IVF Group | FY20 Half Year Results 14
Slide 15: 1H20 Revenue Analysis
1H20 Revenue Analysis Revenue largely maintained notwithstanding specialist departure in September 2019 79 0.1 0.4 77 3.2 1.5 75 1.2 $M 73 77.2 77.0 71 69 1H19 Revenue ARS volume decline Price (ARS) FS/TAS contribution International (ARS) Ultrasound, Diagnostics & 1H20 Revenue Other Organic Revenu
Slide 16: 1H20 Profit and Loss Overview
1H20 Profit and Loss Overview 1H20 Adjusted NPAT before non-regular items is marginally above ASX guidance $m 1H20 1H19 % change $9.1m 1H20 Adjusted NPAT(1) marginally above ASX guidance Group revenue 77.0 77.2 (0.2%) Financial Impact from five Victorian specialist departure is Reported EBITDA 1
Slide 17: Earnings reconciliation
Earnings reconciliation The below provides a reconciliation of earnings due to the adoption of AASB16 Leases which took effect on 1 July 2019 which was not retrospectively applied to previous periods and certain non-regular items $m EBITDA EBIT NPAT(1) Reported Statutory 18.2 13.1 8.2 Acquisition ac
Slide 18: Cash Flow Overview
Cash Flow Overview Investment in future growth and reduction in earnings impacted cash flow $m 1H20 1H19 % change Free cash flow(1) generated whilst Reported EBITDA 18.2 18.7 (2.7%) continuing to invest in growth through: Movement in working capital (4.0) 0.1 - • Fertility Solutions acquisition ($
Slide 19: Capital Management Overview
Capital Management Overview Balance Sheet remains strong for future growth notwithstanding decline in capital metrics in 1H20 31-Dec 30-Jun % Balance Sheet ($m) 2.55x Leverage Ratio is well below 3.5x 2019 2019 change covenant requirement supporting strategic growth Cash and cash equivalents 5.0 4
Slide 20: Strategy and Outlook
Strategy and Outlook Monash IVF Group | FY20 Half Year Results 20
Slide 21: Monash IVF Group | FY20 Half Year Results
Monash IVF Group | FY20 Half Year Results 21
Slide 22: FY20 Outlook
FY20 Outlook The Company wishes to re-confirm profit guidance provided in November 2019 as follows: We anticipate FY20 NPAT before non-regular items for the year ended 30 June 2020 will be in the range of $18.0m to $19.0m. Non-regular items are expected to include transaction costs associated with a
Slide 23: Appendix
Appendix Monash IVF Group | FY20 Half Year Results 23
Slide 24: 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) 17 Sonologists 102 Fertility Specialists 4 Australian states & Trainees 2 day hospitals (SA & Malay
Slide 25: Treatment Mix
Treatment Mix IVF Treatment numbers 1H20 1H19 % change Monash IVF Group – Australia Stimulated cycles 3,872 3,932 (1.5%) Cancelled cycles 362 366 (1.1%) Frozen embryo transfers 2,836 2,834 0.0% Total Australian Patient Treatments 7,070 7,132 (0.9%) Monash IVF Group – International Stimulated cycles
Slide 26: Questions
Sample title Sample subtitle, you can add a custom image on the right by clicking the image icon Questions 26