Monash Ivf Group Ltd · ASX:MVF
Monash Ivf — FY2019 Earnings Presentation
30 slides from Monash Ivf's earnings presentation, Aug 26, 2019
Slide 1: FY19 Results Presentation
Growing stronger together… FY19 Results Presentation 26 August 2019
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: FY19 Executive Summary
FY19 Executive Summary Return to earnings growth in 2H19 with NPAT up by 9.5% on pcp with FY19 NPAT down 2.3% on pcp before one-off non-recurring items1 MVF Australian Full Service Stimulated Cycles grew by 3.7% driven by 11.3% growth achieved in SA, NSW and QLD (excluding impact from departed s
Slide 4: FY19 Financial Summary
FY19 Financial Summary Underlying FY19 NPAT decline of 2.3% after reporting 1H19 Underlying NPAT decline of 11.3% (1)(4) Revenue Underlying EBITDA FY19 Dividends $152.0m $37.8m 6.0c FY18 $150.6m FY18 $38.1m FY18 6.0 cents Up 0.9% Down 0.8% No Change FY19 Statutory EBITDA: $37.2m Down 2.3% (2)(5) (3)
Slide 5: 2H19 Financial Summary
2H19 Financial Summary Performance significantly better than 2H18 resulting in 9.5% NPAT growth, whilst continuing to invest in future demand creation and strategic initiatives (1) 2H19 Revenue 2H19 EBITDA 2H19 EBITDA margin % $74.8m $18.5m 24.7% 2H18 $73.7m 2H18 $17.3m 2H18 23.5% Up 1.5% Up 6.7% Up
Slide 6: ARS Australia – Market Growth
ARS Australia – Market Growth Stimulated cycles(1) in Australia during FY19 showed growth of 6.4% above the long term growth rate of ~2% Stimulated Cycle(1) Growth Rates in our Key Markets(2) Number of Australian Stimulated Cycles(1) by FY 44,000 8.0% 6.7% 42,212 6.3% 6.5% 42,000 6.0% 4.6% 4.7% 40,1
Slide 7: ARS Australia – MVF Volumes
ARS Australia – MVF Volumes Full Service Stimulated Cycle(1) growth of 3.7% driven by SA, NSW and QLD fertility clinics (excluding impact from departed specialist) Full Service Stimulated Cycles(1) (excluding the impact from a departed specialist) grew by 3.7% compared to pcp Stimulated Cycles(1)
Slide 8: ARS Australia – Market Share
ARS Australia – Market Share Strong market share growth in NSW and SA, stable in QLD, with a decline in Victoria Key Markets1 Market Share Key Markets1 Market Share Stimulated Cycles2 Frozen Embryos3 20.6% 23.3% FY18 22.3% FY18 25.7% Down 1.7% Down 2.4% Australian Market Share of 18.0% Australian Ma
Slide 9: ARS Australia – Operational Performance
ARS Australia – Operational Performance World first non-invasive, pre-implantation genetic screening technology showcases our investment into our scientific offerings (NIPGT) Picture of NIPGT NIPGT internally developed, tested, patented and now commercially available exclusively across all MVF own
Slide 10: ARS Australia - Operational Performance (continued)
ARS Australia - Operational Performance (continued) Continued progress and investment to achieve our objectives and strategic initiatives Continued emphasis on enhancing the patient journey with a focus on care, empathy, support and consistency across all patient engagement Patient Utilisation o
Slide 11: ARS Australia - Operational Performance (continued)
ARS Australia - Operational Performance (continued) Continued investment to achieve objectives in our Strategic Roadmap Engagement with employees has improved through our Principles and Beliefs, focus on improving patient experience, leadership training programs and improvement programs from our P
Slide 12: ARS Australia – Brand & Marketing
ARS Australia – Brand & Marketing Building the Monash IVF Group brands through innovative marketing and reputation as the trusted advisor for fertility Building Monash IVF brand awareness and confidence as the trusted advisor Focus on communicating more often and earlier in the fertility journey
Slide 13: ARS Australia – Fertility Solutions Acquisition
ARS Australia – Fertility Solutions Acquisition Two Fertility clinics acquired in QLD in July 2019, expected to be earnings accretive Acquisition of Fertility business in Queensland based in Buderim (Sunshine Coast) and Bundaberg performing 300+ Stimulated Cycles(1) per annum Fertility Solutions
Slide 14: Diagnostics Performance
Diagnostics Performance We continue to build and broaden our Diagnostic capabilities and develop new technologies. Ultrasound scan volumes increased by 0.6% from 80,392 to 80,860 Sydney Ultrasound for Women (SUFW) scan volumes declined by 3.9% due to greater competitive pressures as a result of
Slide 15: ARS International Performance
ARS International Performance ARS International continues to demonstrate exceptional growth with EBITDA up by 40.5% Revenue increased by 32.3% from $8.77m to $11.60m as Stimulated Cycles increased by 21.8% from 849 to 1,034 The move to the new Facility in late 2017 has been the key driver of gro
Slide 16: Financial Overview
Financial Overview 16 Monash IVF Group | FY19 Results Presentation
Slide 17: FY19 Revenue Analysis
FY19 Revenue Analysis Revenue growth achieved notwithstanding revenue impact from departure of a specialist having an impact predominately in 1H19 155 150 2.8 0.5 5.9 2.2 145 1.5 3.3 $M 140 150.6 152.0 135 130 FY18 Revenue 1H19 VIC ARS 2H19 VIC ARS Non-VIC ARS ARS price International Ultrasound, FY1
Slide 18: FY19 EBITDA Margin Analysis
FY19 EBITDA Margin Analysis (excluding non-recurring one off items) EBITDA Margin % has improved in FY19 as compared to H2 FY18. EBITDA margin improvement of 1.4% in FY19 compared to 2H18 26% Margin improvement is due to volume growth in NSW, QLD, SA and Malaysia and cost effective 25% managemen
Slide 19: FY19 Profit and Loss Overview
FY19 Profit and Loss Overview Earnings growth achieved in H2 reflecting growth achieved in SA, QLD, NSW and Malaysia $m FY19 FY18 % change Return to growth with NPAT up by 9.5% in 2H19 Group revenue 152.0 150.6 0.9% Revenues increased by $1.4m (0.9%) to $152.0m vs pcp due to: EBITDA(1) excluding
Slide 20: Capital Management Overview
Capital Management Overview Balance Sheet stronger as Leverage ratio improves and Long-term Debt Facility is extended to FY22. 30 Jun 30 Jun % Balance Sheet strength improves with Net Debt Balance Sheet ($m) 2019 2018 change to Equity ratio reduced by 7.6% to 48.8% Cash and cash equivalents 4.3 3.
Slide 21: Cash Flow Overview
Cash Flow Overview Strong operating cash flow generation allowing for an improved Net Debt position, strengthening our Balance Sheet for future growth opportunities % $m FY19 FY18 change Net operating cash flows increased by 27.7% to $33.1m Net operating cash flow (pre-tax) 39.9 35.5 12.3% Pre-t
Slide 22: Strategy and Outlook
Strategy and Outlook 22 Monash IVF Group | FY19 Results Presentation
Slide 23: ARS Australia – Brand & Marketing
ARS Australia – Brand & Marketing XXX 23 Monash IVF Group | FY19 Results Presentation
Slide 24: FY2020 Outlook
FY2020 Outlook As a result of momentum gained in 2H19, we are well positioned to optimise future earnings, as we progress our strategic initiatives. The key initiatives include: Clear strategy to grow our full service business through enhancing our best-in-class patient experience and scientific l
Slide 25: Appendix
Appendix 25 Monash IVF Group | FY19 Results Presentation
Slide 26: Overview of Monash IVF Group
Overview of Monash IVF Group1 Monash IVF Group is a market leader in fertility ARS Diagnostic Ultrasound 23 clinics 2 specialised 18 clinics laboratories (VIC and 3 service centres SA) 16 Sonologists 90 Fertility Specialists 4 Australian states 2 day hospitals (SA & 7 Australian Ma
Slide 27: Statutory NPAT & EBITDA Reconciliation
Statutory NPAT & Statutory EBITDA Reconciliation to Underlying NPAT & Underlying EBITDA 2019 2018 $’000 $’000 Statutory net profit after tax attributable to owners of the company 19,852 21,353 One-off non recurring items - Mosman clinic closure accelerated depreciation 882 - - Mosman clinic closure
Slide 28: Treatment Mix
Treatment Mix IVF Treatment numbers FY19 FY18 % change Monash IVF Group – Australia Stimulated cycles 7,607 7,844 (3.0%) Cancelled cycles 732 796 (8.0%) Frozen embryo transfers 5,584 5,913 (5.6%) Total Australian Patient Treatments 13,923 14,553 (4.3%) Monash IVF Group – International Stimulated cyc
Slide 29: Australian ARS Market Share
Australian ARS Market Share Market share – IVF FY19 FY18 % change Stimulated Cycles1 MVF Stimulated Cycles1 in Australia 7,607 7,844 (3.0%) MVF Market Share in Australia 18.0% 19.8% (1.8%) MVF Stimulated Cycles1 in Key Markets2 7,607 7,844 (3.0%) MVF Market Share in Key Markets2 20.6% 22.3% (1.7%) P
Slide 30: Questions
Growing stronger together… Questions FY19 Results Presentation 26 August 2019