Monash Ivf Group Ltd · ASX:MVF

Monash Ivf — FY2015 Earnings Presentation

23 slides from Monash Ivf's earnings presentation, Aug 28, 2015

  1. Slide 1: Full Year Results Presentation – Year Ended 30 June 2015

    FULL YEAR RESULTS PRESENTATION YEAR ENDED – 30 JUNE 2015 28 AUGUST 2015 James Thiedeman & Rodney Fox

  2. 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

  3. Slide 3: Overview of Monash IVF Group

    OVERVIEW OF MONASH IVF GROUP Monash IVF Group (MVF) is a market leader in the fields of fertility care, womens imaging & diagnostics Core Assisted Reproductive Services Diagnostic and ancillary services Ultrasound  Comprehensive range of fertility treatments and  Comprehensive range of diagnostic

  4. Slide 4: Full Year Highlights

    FULL YEAR HIGHLIGHTS  Revenues increased $11.0M (9.6%) to $125.0M vs FY2014 including: • Assisted Reproductive Service (ARS) revenues boosted $7.5M from acquisitions • International revenues up $1.0M (21.7% vs FY2014) • Monash Ultrasound for Women revenues up $0.4M (5.4% vs FY2014)  Normalised NPA

  5. Slide 5: Full Year Highlights

    FULL YEAR HIGHLIGHTS  Acquisition of Sydney Ultrasound for Women (SUFW) further consolidates the Group’s NSW network and broadens future revenue streams  Appointment of Dr Michelle Lane as Chief Operating Officer to drive synergies and best in breed processes and maintain the Group’s preeminent sc

  6. Slide 6: Australian ARS Market Movement

    AUSTRALIAN ARS MARKET MOVEMENT  Assisted Reproductive Services Patient Treatment growth in the Group’s Australian Key Markets1 grew 0.8% • Prospectus forecast assumed market growth in Patient Treatments of 4.1% (based on historical growth trend) noting that market growth rate fluctuations occur fro

  7. Slide 7: Australian Market Share

    AUSTRALIAN MARKET SHARE FY2015 FY2014 Change Actual Actual % Number of Patient Treatment in Monash IVF Group’s Key Markets1 36,063 35,664 1.1% Monash IVF Group market share in the Group’s Key Markets – 39.50% 38.80% 1.8% Patient Treatments  Overall market share in Australian Key Markets1 (ie. exclu

  8. Slide 8: Volume and Treatment Mix

    VOLUME AND TREATMENT MIX  Total Patient Treatment growth of 11% vs FY2015 FY2014 Change FY2015 Change FY2014 Actual Actual % Prospectus % Monash IVF Group - Australia  Patient treatments were 4.2% below Prospectus primarily due to lower than IVF cycles 9,156 8,436 8.5% 10,086 -9.2% expected ARS ma

  9. Slide 9: Revenue Analysis vs FY2014

    REVENUE ANALYSIS vs FY2014 Revenue $M Actual FY2015 vs Actual FY2014 126 125 7.5(4) 1.0 124 122 120 118 0.5(3) (0.9) 2.0(2) 116 114 0.9(1) 114 112 FY14 Actual Market Market share Pricing and Other income Acquisitions International FY15 Actual growth (ARS) mix (ARS) (ARS) 1. 0.8% Patient Treatment ma

  10. Slide 10: Revenue Analysis vs Prospectus

    REVENUE ANALYSIS VS PROSPECTUS Revenue $M Actual FY2015 vs Prospectus 132 130.3 (5.2)(1) 130 128 126 (3.6)(2) 125 0.8(4) 3.0(3) 124 122 0.1 (0.4) 120 118 116 FY15 Market Market share Pricing and Other income Acquisitions International FY15 Actual prospectus growth (ARS) mix (ARS) (ARS) 1. $5.2M impa

  11. Slide 11: Summary Income Statement

    SUMMARY INCOME STATEMENT Profit and Loss Analysis  Revenue increased 9.6% versus FY2014 2015 2014 Change Prospectus driven by acquisitions and ramp up of new $M $M % $M clinics Group revenues 125.0 114.0 9.6% 130.3  Normalised EBITDA increased by $1.6M Normalised EBITDA(1)(2) 41.3 39.7 4.0% 45.1 v

  12. Slide 12: Segment Analysis

    SEGMENT ANALYSIS Segment Analysis FY2015 FY2014 Change Prospectus $M $M % $M Revenue Australia 119.4 109.4 9.1% 125.5 International 5.6 4.6 21.7% 4.8 Total Revenue 125.0 114.0 9.6% 130.3 Normalised EBITDA1 Australia 39.0 37.6 3.7% 43.2 International 2.3 2.1 9.5% 1.9 Total Normalised EBITDA1 41.3 39.

  13. Slide 13: Expanding Domestic Footprint

    EXPANDING DOMESTIC FOOTPRINT Acquisitions & New Locations  New Wagga Wagga (regional NSW) clinic (commissioned November 2014) performing to plan  Fertility East (Bondi Junction, Sydney) (acquired December 2014) performing to plan  Additional Service Centres (consulting and monitoring) established

  14. Slide 14: International – KL Fertility

    INTERNATIONAL – KL FERTILITY  Revenues increased 21.7% to $5.6M • Revenue growth underpinned by 14% increase in Patient Treatments  EBITDA increased 9.5% to $2.3M FY2015 FY2014 Change  Continued growth in volumes achieved by additional Actual Actual % Fertility Specialist $M $M Revenue 5.6 4.6 21

  15. Slide 15: Womens Imaging Services

    WOMENS IMAGING SERVICES  Revenues increased 5.4% vs FY2014 (excl SUFW) • Scan volumes increased 1.7% vs FY2014 (excl SUFW)  Non Invasive Prenatal Testing (NIPT) increased 71% vs FY2014 (excl SUFW) • Representing 16% of MUFW revenue  Acquisition of Sydney Ultrasound for Women (SUFW) completed June

  16. Slide 16: Sydney Ultrasound for Women

    SYDNEY ULTRASOUND FOR WOMEN Leading provider of specialist womens imaging in NSW operating 11 practices in the Sydney metropolitan area  The acquisition will complement the existing Monash Ultrasound for Women business in Victoria and Monash IVF Group’s focus on womens health  The acquisition of S

  17. Slide 17: Science & Innovation

    SCIENCE & INNOVATION  The Group continues to invest in research and innovation across the clinic network including through the Monash IVF Research and Education Foundation (MREF) • During FY2015, 15 projects have been funded aimed at advancing fertility diagnosis and care • Over 40 scientific paper

  18. Slide 18: Summary Statement of Financial Position

    SUMMARY STATEMENT OF FINANCIAL POSITION  Strong balance sheet maintained 2015 2014 Variance $M $M %  Growth in goodwill and debt reflects acquisition of Current assets SUFW and Fertility East Cash 10.0 8.8 13.6% Other current assets 6.8 5.7 19.3% Total current assets 16.8 14.5 15.9%  Net Debt $96

  19. Slide 19: FY2015 Dividend

    FY2015 DIVIDEND  Fully Franked Final Dividend of 3.70 cents per share declared • Record Date 11 September 2015 • Payable Date 15 October 2015  Full year dividend of 6.95cps reflects a payout ratio 70% of normalised NPAT vs Prospectus guidance of 65% of NPAT and consistent with the intended payout

  20. Slide 20: Cash Flow Highlights

    CASH FLOW HIGHLIGHTS  Conversion of operating cash flow to 2015 2014 Variance Prospectus normalised EBITDA was 97% (FY14: $M $M % $M 95%). Improvement on FY14 due to higher patient prepayments at 30 June Net operating cash flow 40.1 37.7 6.4% 45.5 2015 Purchase of property, plant & equipment 1 -5.5

  21. Slide 21: Summary

    SUMMARY  Solid performance in an ARS market that grew slower than expected in Australia  Fundamental drivers for the industry remain unchanged, despite lower overall market growth in FY2015 • Long run Patient Treatment growth expected to revert to long term historical averages.  Continuing to gro

  22. Slide 22: Strategy and Outlook

    STRATEGY AND OUTLOOK  Continue to develop industry leading science and technology Science,  Deliver patients with clinically superior services and increase market penetration technology & patient success  Promote Monash IVF Group’s scientific and clinical excellence with doctors and potential pat

  23. Slide 23: Questions

    QUESTIONS 23

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