Slide 1: FY17 Half Year Results Presentation
FY17 Half Year Results Presentation 20 February 2017
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: CEO Summary
CEO Summary 3 Monash IVF Group | FY17 Half Year Results Presentation
Slide 4: Track record of strong financial performance
Track record of strong financial performance Number of Patient Treatments¹ Revenue ($m) H2 H1 8,811 77.3 8,110 7,050 64.7 56.4 6,322 49.8 9,090 8,895 79.3 78.7 7,237 7,751 60.3 6,260 57.6 46.5 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 4 Year CAGR3 of 9.2% 4 Year CAGR3 of 14.1% EBITDA5 ($m) N
Slide 5: 1H FY2017 Highlights
1H FY2017 Highlights NPAT increased $1.2m (8.8%) to $15.2m vs pcp (exceeding guidance provided in November 2016) $78.7m $15.2m EBITDA4 increased $0.8m (3.1%) to $25.3m vs pcp Revenue NPAT 1H16 $79.3m 1H16 $14.0m Revenues declined $0.6m (0.8%) to $78.7m vs pcp Down 0.8% on pcp Up 8.8% on pcp
Slide 6: Australian IVF market movement
Australian IVF market movement Stimulated Cycle Growth Rates in Key Markets1 The Australian IVF Market softened in 1H17 9.3% against very strong comparative volumes in the 7.5% 7.4% pcp Total Key Markets1 Stimulated Cycles declined 2.7% during 1H17 by 4.8% vs pcp (increased by 8.3% in 1H16) Q1 F
Slide 7: Financial Highlights
Financial Highlights 7 Monash IVF Group | FY17 Half Year Results Presentation
Slide 8: Profit and Loss analysis
Profit and Loss analysis $m 1H17 1H16 % change NPAT increased $1.2m (8.8%) to $15.2m vs pcp Group revenues 78.7 79.3 0.8% Revenues decreased $0.6m (-0.8%) to $78.7m vs pcp due to decline in industry EBITDA(1)(2) 25.3 24.5 3.1% growth rates partly offset by price increases and market share gains
Slide 9: Revenue Analysis
Revenue Analysis Revenue 1H17 vs 1H16 ($m) 0.1 0.3 1.6 1.1 79.3 0.1 78.7 1H16 Market decline (ARS) Market share (ARS) Price (ARS) International (ARS) Other 1H17 ARS Market decline: $1.6m or 2.0% decrease due to 4.8% Stimulated Cycle1 decline across Key Markets2 ARS Market share: $0.1m or 0.1% increa
Slide 10: Segmental earnings
Segmental earnings Australia Revenues decreased by $0.7m Revenue (-0.9%) to $75.6m vs pcp due to: A$3.1m +$0.1m (3.3%) A$3.0m Key Markets2 Stimulated Cycles3 market volume decline of 4.8% Ancillary revenues impacted by market weakness in specialised women’s 1H17 1H16 ultrasound services $78.7m
Slide 11: Capital Management
Capital Management Balance Sheet strength maintained with net debt to equity ratio of 58.1% % Balance Sheet ($m) Dec 16 Jun 16 change Net Debt increased by $6.3m to $92.8m after $12.3m tax payments (including $9.5m relating to Cash and cash equivalents 4.2 8.5 (50.6%) FY16), $10.6m dividend paym
Slide 12: Cash flow highlights
Cash flow highlights Pre-tax conversion of operating % $m 1H17 1H16 cash flow to EBITDA was 84.6% change (1H16: 94.5%) Net operating cash flow (pre-tax) 21.4 23.1 (7.4%) Free cash flow declined by $8.8m or 59.9% predominantly Net operating cash flow (post-tax) 9.1 19.0 (52.1%) due to anticipated
Slide 13: Operational Highlights
Operational Highlights 13 Monash IVF Group | FY17 Half Year Results Presentation
Slide 14: Australian market share - IVF
Patient Treatment1 Market Share Australian market share - IVF New Key Markets2 Australia Market share - IVF 1H17 1H16 % change 25.8% 23.4% Stimulated Cycles3 MVF Stimulated Cycles3 in New Key Markets2 4,557 4,668 (2.4%) MVF market share in New Key Markets2 25.9% 25.3% 0.6% MVF Stimulated Cycles3 in
Slide 15: Pricing and treatment mix
Pricing and treatment mix Australian Stimulated cycles declined by 2.4% as compared to Australian industry IVF Treatment numbers 1H17 1H16 % change decline of 6.2% Monash Group – Australia Total IVF Patient Treatments declined from Stimulated cycles 4,557 4,668 (2.4%) 9,090 to 8,895 (-2.1%) vs p
Slide 16: Expanding domestic footprint & brand consolidation
Expanding domestic footprint & brand consolidation Acquisitions, New New Monash Ultrasound for Women clinic opened in Berwick, Melbourne in August 2016 Locations & Medical New women’s ultrasound services commenced in Adelaide, South Australia from November 2016 Specialists Commenced IVF servic
Slide 17: International – KL Fertility
International – KL Fertility Continued strong growth in volumes achieved as new fertility specialists continue to gain traction Building clinic capacity with relocation allowing accommodation of demand growth Slight EBITDA(1)(2) margin compression as we build capacity and capability in readine
Slide 18: FY17 Outlook
FY17 Outlook 18 Monash IVF Group | FY17 Half Year Results Presentation
Slide 19: FY2017 Full Year Outlook
FY2017 Full Year Outlook Monash IVF Group is well positioned to grow its future We anticipate the reported FY17 NPAT will be above revenues and earnings as a result of: the prior year, the quantum of which is dependent on • Strong underlying demand fundamentals for IVF and Stimulated Cycles1 market
Slide 20: Strategy FY18 and beyond
Strategy FY18 and beyond Our strategy remains consistent and focused, to profitably grow our business through leveraging our scientific capabilities across the clinic network with our premium service offering Science, Continue to develop industry leading science and technology technology Deliver
Slide 21: Summary
Summary 21 Monash IVF Group | FY17 Half Year Results Presentation
Slide 22: Summary
Summary Track record of strong long term financial performance Delivered a strong profit performance in 1H17 with NPAT growth of 8.8% 1H17 results impacted by a softening in IVF industry growth rates Market Share growth delivered in 1H17 Fundamental drivers for the industry remain solid
Slide 23: Overview of Monash IVF Group
Overview of Monash IVF Group Core Assisted Diagnostic and Ancillary Ultrasound Reproductive Services Services 22 clinics 2 specialised 17 clinics laboratories in Victoria 5 service centres and South Australia 18 Sonologists 89 Fertility Specialists 3 Australian states 2 day hospitals
Slide 24: Questions
Questions 24 Monash IVF Group | FY17 Half Year Results Presentation