Monash Ivf Group Ltd · ASX:MVF
Monash Ivf — FY2018 Earnings Presentation
25 slides from Monash Ivf's earnings presentation, Aug 27, 2018
Slide 1: FY18 Full Year Results Presentation
LIFE STARTS HERE FY18 Full Year Results Presentation 27 August 2018
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: FY18 Financial Summary
FY18 Financial Summary 1 Revenue EBITDA NPAT 2 $150.6m $38.1m $21.4m FY17 $155.2m FY17 $49.0m FY17 $29.6m Down 2.9% Down 22.2% Down 27.9% Cash Conversion 3 Basic EPS FY18 Dividends 93.3% 9.1 cents 6.0c FY17 93.9% FY17 12.6 cents FY17 8.8 cents Down 0.6% Down 27.8% Down 31.8% 1. Earnings before inter
Slide 4: FY18 Executive Summary
FY18 Executive Summary ARS Australia Business has been significantly impacted by the departure of a Victorian Fertility Specialist (“Specialist”) in September 2017 ARS Australia Premium Service Business (excluding departure of a Specialist) remains solid demonstrating Stimulated Cycle growth of
Slide 5: MVF Long-Term Performance
MVF Long-Term Performance We have had a track record of solid performance, however FY18 has been significantly impacted by the departure of a Specialist. Stimulated Cycles Revenue ($m) 156.6 155.2 150.6 9,807 9,591 8,091 8,788 8,693 114.0 125.0 7,115 7,568 89.8 96.3 FY12 FY13 FY14 FY15 FY16 FY17 FY1
Slide 6: ARS Australia – Operational Performance
ARS Australia – Operational Performance Operational performance has been significantly impacted by the departure of a Specialist. Premium Service business (excluding the impact from a departing Specialist) remains solid, demonstrating 3.0% Stimulated Cycle growth in our Key Markets1 in FY18 vs. FY
Slide 7: ARS Australia – Volume and Market Share
ARS Australia – Volume and Market Share Stimulated Cycles Frozen Embryos Patient Treatments 2 7,844 5,913 14,553 FY17 8,902 FY17 6,194 FY17 16,064 Down 11.9% Down 4.5% Down 9.4% Market Share 1 Market Share 1 Market Share 1 Stimulated Cycles Frozen Embryos Patient Treatments 22.3% 25.8% 23.7% FY17 25
Slide 8: ARS Australia Market Movement and Growth
ARS Australia Market Movement and Growth Stimulated Cycles in Key Markets1 declined by 0.6% in FY18 vs FY17. Our view is that the long- term Stimulated Cycle growth rate will be approximately 2.0%. Stimulated Cycle Growth Rates in our Key Markets1 Number of Australian Stimulated Cycles2 by FY 40,115
Slide 9: Diagnostics Performance
Diagnostics Performance Diagnostics continues to grow as we build our in-house capabilities and leverage our Ultrasound footprint. NIPT volumes increased by 32.4% from 9,834 to 13,017 of which 99.1% was performed in-house (37.3% pcp). This has enhanced our Ultrasound service offering NIPT revenu
Slide 10: ARS International Performance
ARS International Performance ARS International EBITDA grew 50.2% and now represents 9.9% of Group EBITDA. ARS revenue increased by 40.5% from $6.2m to $8.8m as Stimulated Cycles increased by 23.2% from 689 to 849. Total Patient Treatments increased by 24.2% from 1,346 to 1,672 EBITDA increased
Slide 11: Financial Overview
FINANCIAL OVERVIEW 11 Monash IVF Group | FY18 Full Year Results
Slide 12: FY18 Profit and Loss Overview
FY18 Profit and Loss Overview Whilst NPAT is down 27.9%, the underlying Business remains solid as we invest in strategic initiatives and absorb one-off costs. Revenues decreased $4.6m (-2.9%) to $150.6m vs pcp due to: • A Specialist departure in Victoria $m FY18 FY17 % change • Overall market decl
Slide 13: FY18 Revenue Analysis
FY18 Revenue Analysis Group Revenue has been impacted by a Specialist departure, a decline in the Australian ARS market, partly offset by underlying market share growth1, price increases, strong growth in our Malaysian clinic and expanding our revenue base through our non-invasive prenatal testing o
Slide 14: FY18 Expenditure Analysis
FY18 Expenditure Analysis Our cost base has predominately increased by investment in strategic growth initiatives and one-off costs. $1.7m expenditure increase from inflationary costs, 115 impact from Scientific Enterprise Agreement and 114 annual property increases partly offset by other 113 0.3
Slide 15: Capital Management Overview
Capital Management Overview We have debt capacity to support strategic growth initiatives. Balance Sheet ($m) 30 Jun 18 30 Jun 17 % change Balance Sheet strength softened with Net Debt to Equity ratio stable at 56.4% Cash and cash equivalents 3.9 3.5 11.4% Long-term Debt Facility in-place with a
Slide 16: Cash Flow Overview
Cash Flow Overview Net operating cash flow post-tax was stable supporting our capital investments and dividend payments. Net operating cash flows is stable at $m FY18 FY17 % change $25.9m although pre-tax operating cash flow declined by 22.8% Net operating cash flow (pre-tax) 35.5 46.0 (22.8%) P
Slide 17: Strategy & Outlook
STRATEGY & OUTLOOK 17 Monash IVF Group | FY18 Full Year Results
Slide 18: Strategic Priorities
Strategic Priorities Our strategic priorities will drive growth and create sustainable shareholder value… Premium Fertility Focus on our Premium Fertility offering for women Solutions and men; including holistic Fertility Solutions Fertility (Women and Men) Premium Offerings Fertility and Increase t
Slide 19: Operating Priorities
Operating Priorities …we continue to focus on our operating priorities of Scientific Leadership, Clinical Excellence and Customer (Patient) Experience. Scientific Harmonise scientific methods and invest in laboratories with state of the art technology Practices and equipment to continue to support o
Slide 20: FY2019 Outlook
FY2019 Outlook We anticipate delivering NPAT growth in FY19 on pcp. However, 1H19 NPAT is expected to decline by approximately 15% on pcp, as 1H18 included one quarter of ARS activity from a departed Specialist. 20 Monash IVF Group | FY18 Full Year Results
Slide 21: Appendix
APPENDIX 21 Monash IVF Group | FY18 Full Year Results
Slide 22: Overview of Monash IVF Group
Overview of Monash IVF Group Monash IVF Group is a market leader in fertility ARS Diagnostic Ultrasound 22 clinics 2 specialised 18 clinics laboratories (VIC and 5 service centres SA) 15 Sonologists 91 Fertility Specialists 4 Australian states 3 day hospitals (SA, 7 Australian NSW
Slide 23: Treatment Mix
Treatment Mix IVF Treatment numbers FY18 FY17 % change Monash IVF Group – Australia Stimulated cycles 7,844 8,902 (11.9%) Cancelled cycles 796 968 (17.8%) Frozen embryo transfers 5,913 6,194 (4.5%) Total Australian Patient Treatments 14,553 16,064 (9.4%) Monash IVF Group – International Stimulated c
Slide 24: Australian market share - ARS
Australian market share - ARS % Stimulated Cycle3 Market Share Market share – IVF FY18 FY17 change Australia Key Markets2 Stimulated Cycles3 19.8% 22.3% MVF Stimulated Cycles3 in Australia 7,844 8,902 (11.9%) MVF market share in Australia 19.8% 22.4% (2.6%) 80.2% 77.7% MVF Stimulated Cycles3 in Key
Slide 25: Questions
QUESTIONS 25 Monash IVF Group | FY18 Full Year Results