Monash Ivf Group Ltd · ASX:MVF
Monash Ivf — H1 2019 Earnings Presentation
24 slides from Monash Ivf's earnings presentation, Feb 25, 2019
Slide 1: FY19 Half Year Results Presentation
FY19 Half Year Results Presentation 25 February 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: 1H19 Executive Summary
1H19 Executive Summary NPAT exceeded guidance provided at the AGM, 11.3% below pcp before one-off non-recurring items Premium Service Business Stimulated Cycles grew by 7.0% excluding impact from departed Specialist (15.6% combined growth in NSW, QLD and SA) ARS International growth continues
Slide 4: MVF long term performance
MVF long term performance We have a track record of solid performance against the 5-year Stimulated Cycle industry CAGR of 1.7%7, however FY18 and 1H19 have been impacted by the departure of a Specialist. Stimulated Cycles Revenue ($m) H1 H2 H1 H2 4,832 4,696 77.3 76.5 73.6 4,525 4,202 3,926 64.7 56
Slide 5: 1H19 Financial Summary
1H19 Financial Summary (1)(4) Revenue Underlying EBITDA 1H19 Dividends $77.2m $19.3m 3.0c 1H18 $77.0m 1H18 $20.8m 1H18 3.4 cents Up 0.3% Down 7.0% Down 11.8% Statutory EBITDA: $18.7m Down 9.8% (2)(5) (3) Underlying NPAT Cash Conversion Basic EPS $10.7m 100.3% 4.10c 1H18 $12.1m 1H18 85.0% 1H18 5.12 c
Slide 6: ARS Australia - Operational Performance
ARS Australia - Operational Performance Strong growth achieved outside of Victoria minimising the impact from departed Specialist. • 15.6% Stimulated Cycle growth achieved across SA, NSW and QLD. As a result, Premium Service Stimulated Cycles (excluding the impact from a departed specialist) grew by
Slide 7: ARS Australia - Operational Performance (continued)
ARS Australia - Operational Performance (continued) Continued investment into our Operating Priorities to deliver sustainable growth. • Non-invasive pre-implantation genetic screening (NIPGS) developed, tested and patented. Technology will become available to all Monash IVF Group clinics this financ
Slide 8: Diagnostics Performance
Diagnostics Performance We continue to build our in-house Diagnostic capabilities and develop new technologies, whilst facing increased competition in the NSW Ultrasound market. Ultrasound Scan volumes increased by 1.4% from 38,097 to 38,633 Sydney Ultrasound for Women scans declined by 3.2% due
Slide 9: ARS International Performance
ARS International Performance ARS International continues to demonstrate exceptional growth with EBITDA up by 53.7% Revenue increased by 41.7% from $3.91m to $5.54m as Stimulated Cycles increased by 25.4% from 413 to 518 EBITDA increased by 53.7% to $2.49m from $1.62m, now contributing 13% of Gr
Slide 10: Financial Overview
Financial Overview 10 Monash IVF Group | FY19 Half Year Results
Slide 11: 1H19 Profit and Loss Overview
1H19 Profit and Loss Overview Whilst NPAT before one-off items is down 11.3%, underlying Business remains solid as we invest in our Strategic and Operating Priorities NPAT exceeded guidance provided at the AGM, 11.3% below $m 1H19 1H18 % change pcp before one-off non-recurring items Group revenues
Slide 12: 1H19 Revenue Analysis
1H19 Revenue Analysis Revenue growth achieved notwithstanding revenue impact from departure of a Specialist 78 0.3 77 76 1.6 75 1.2 $M 74 5.9 77.0 77.2 73 3.0 72 71 70 1H18 Revenue VIC ARS Volume Non-VIC ARS ARS price International (ARS) Ultrasound, 1H19 Revenue decline Volume growth Diagnostics & O
Slide 13: 1H19 EBITDA Margin Analysis
1H19 EBITDA Margin Analysis (excluding non-recurring one off items) EBITDA Margin % has improved in 1H19 as compared to 2H18. 27% EBITDA margin improvement of 1.5% in 1H19 compared to 2H18 due to volume 26% 2.6% growth in NSW, QLD, SA and Malaysia and cost effective management while investing 25%
Slide 14: Capital Management Overview
Capital Management Overview Balance Sheet stronger as Leverage ratio improves and Long-term Debt Facility is extended to FY22. 31 Dec 30 Jun % Balance Sheet ($m) 2018 2018 change Balance Sheet strength improves with Net Cash and cash equivalents 4.6 3.9 18.0% Debt to Equity ratio reduced by 4.5% t
Slide 15: Cash Flow Overview
Cash Flow Overview Strong operating cash flow generation delivering an improved Net Debt position, strengthening our Balance Sheet. % $m 1H19 1H18 Net operating cash flows increased by change 26.4% to $15.8m Net operating cash flow (pre-tax) 18.8 17.7 6.2% Pre-tax cash conversion of EBITDA to op
Slide 16: Strategy and Outlook
Strategy and Outlook 16 Monash IVF Group | FY19 Half Year Results
Slide 17: Strategic priorities
Strategic priorities Our strategic priorities will drive growth and create sustainable shareholder value… Focus on our Premium Fertility offering for Premium Fertility women and men; including holistic Fertility Fertility Solutions Solutions (Women and Men) Increase the integration of our Fertility
Slide 18: Operating priorities
Operating priorities We continue to focus on operating priorities of Scientific Leadership, Clinical Excellence and Patient Experience. Harmonise scientific methods and invest in laboratories with state of the art Scientific technology and equipment to continue to support our market leading success
Slide 19: Operating priorities
Operating priorities As detailed at the November AGM, we are progressing our short and long term Operating Priorities Scientific Leadership Clinical Excellence Patient Experience World-first internal roll out of Investment in our facilities Patient Journey review non-invasive PGS The ‘Monash
Slide 20: FY2019 Outlook
FY2019 Outlook We anticipate moderate underlying Full Year FY19 NPAT growth compared to pcp, before $1.0m of one-off non- recurring expenditure, and subject to the ARS market growth at approximately 2% in 2H19, as well as our market share improving compared to pcp. As a result we anticipate returnin
Slide 21: Appendix
Appendix 21 Monash IVF Group | FY19 Half 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 clinics2 2 specialised 18 clinics laboratories (VIC and 5 service centres SA) 15 Sonologists 91 Fertility Specialists 4 Australian states 2 day hospitals (SA & 7 Australian Ma
Slide 23: Treatment Mix
Treatment Mix IVF Treatment numbers 1H19 1H18 % change Monash IVF Group – Australia Stimulated cycles 3,932 4,078 (3.6%) Cancelled cycles 366 404 (9.4%) Frozen embryo transfers 2,834 3,184 (11.0%) Total Australian Patient Treatments 7,132 7,666 (7.0%) Monash IVF Group – International Stimulated cycl
Slide 24: Questions
) MONASH IVF GROUP Questions