Monash Ivf Group Ltd · ASX:MVF
Monash Ivf — FY2017 Earnings Presentation
27 slides from Monash Ivf's earnings presentation, Aug 21, 2017
Slide 1: FY17 Results Presentation
For personal use only FY17 Results Presentation 21 August 2017
Slide 2: Disclaimer
Disclaimer For personal use only 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 info
Slide 3: CEO Summary
For personal use only CEO Summary 3 Monash IVF Group | FY17 Results Presentation
Slide 4: Track record of strong financial performance
Track record of strong financial performance For personal use only Number of Patient Treatments¹ Revenue ($m) 156.6 155.2 17901 17410 15861 125.0 14287 114.0 12582 96.3 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 4 Year CAGR3 of 8.5% 4 Year CAGR3 of 12.7% EBITDA5 ($m) NPAT ($m) 49.6 49.0 28.8
Slide 5: FY2017 Financial Highlights
FY2017 Financial Highlights For personal use only $155.2m $29.6m NPAT increased $0.8m (+2.9%) to $29.6m vs pcp Revenue NPAT FY16 $156.6m FY16 $28.8m Australia and International Segments contributed to the NPAT growth Down 0.9% on pcp Up 2.9% on pcp EBITDA1 decreased $0.6m (-1.2%) to $49.0m vs
Slide 6: FY2017 Operational Highlights
FY2017 Operational Highlights For personal use only Monash IVF’s Australian IVF market share only declined marginally in FY17, demonstrating the strength and resilience of its premium offering Monash IVF Australian Stimulated Cycle1 market share only declined marginally (-0.5%) to 22.4%, despite
Slide 7: Update on transition / succession planning
Update on transition / succession planning For personal use only Clinician succession planning and departure of Dr Lynn Burmeister A continual and key focus for Management and the Board is succession planning for clinicians Monash IVF has 89 fertility specialists in Australia, including 32 speci
Slide 8: Australian IVF market movement
Australian IVF market movement For personal use only Stimulated Cycle Growth Rates in Key Markets1 The Australian IVF Market softened in FY17 against very strong comparative volumes in the pcp 15.0% Long Term Growth Rate of 3% 12.3% Total Key Markets1 Stimulated Cycles increased by 0.2% in 10.0%
Slide 9: Financial Highlights
For personal use only Financial Highlights 9 Monash IVF Group | FY17 Results Presentation
Slide 10: Profit and Loss analysis
Profit and Loss analysis NPAT increased $0.8m (+2.9%) to For personal use only $29.6m vs pcp $m FY17 FY16 % change Revenues decreased $1.4m (-0.9%) to $155.2m vs pcp due to: Group revenues 155.2 156.6 0.9% decline in industry growth rates EBITDA(1)(2) 49.0 49.6 1.2% against strong comparative
Slide 11: Revenue Analysis
Revenue Analysis For personal use only Revenue FY17 vs FY16 ($m) 160 159 158 2.6 157 (5.1) 0.1 156 (1.2) $M 155 2.3 154 153 156.6 155.2 152 151 150 FY16 Market growth (ARS) Market share (ARS) Price (ARS) International (ARS) Other FY17 ARS Market growth: $2.6m – largely driven by Victoria and Queensl
Slide 12: Segmental earnings
Segmental earnings Australia For personal use only Revenues decreased by $1.5m (1.0%) to Revenue $148.9m vs pcp due to: +$0.1m (+1.3%) Decrease in volumes across the IVF and ultrasound businesses through a $6.3M $6.2M slowing of market growth and competitive operating environment FY17: FY16: P
Slide 13: Capital Management
Capital Management Balance Sheet strength maintained with net debt to equity ratio of 56.3% For personal use only % Balance Sheet ($m) Jun 17 Jun 16 change Net Debt increased by $5.5m to $92.0m after $20.1m tax payments (including $9.5m relating to Cash and cash equivalents 3.5 8.5 (58.8%) FY16)
Slide 14: Cash flow highlights
Cash flow highlights Pre-tax conversion of operating cash For personal use only flow to EBITDA was 93.9%, with improved % conversion in 2H17 of 103.5% $m FY17 FY16 change Free cash flow(1) declined by $14.5m or 43.4% predominantly due to: Net operating cash flow (pre-tax) 46.0 49.1 (6.3%) Anti
Slide 15: Operational Highlights
For personal use only Operational Highlights 15 Monash IVF Group | FY17 Results Presentation
Slide 16: Australia FY17 overview
Australia FY17 overview For personal use only Profit and loss FY17 FY16 % change Revenue $148.9m $150.4m 1.0% EBITDA(1)(2) $46.5m $47.2m 1.5% EBITDA margin 31.2% 31.4% 20bp Revenue Revenue down $1.5m (-1.0%) Impact of lower volumes partially offset by pricing increases EBITDA margin • Strong cos
Slide 17: Australia - Pricing and treatment mix
Australia - Pricing and treatment mix For personal use only Australian Stimulated cycles declined by 3.1% to IVF Treatment numbers FY17 FY16 % change 8,902 (compared to Australian market decline of 0.8%) Monash Group – Australia Australian Frozen Embryo Transfers declined 3.2%, Stimulated cycles
Slide 18: Australian market share - IVF
Australian market share - IVF Stimulated Cycle3 Market Share Market share - IVF FY17 FY16 % change For personal use only Australia Key Markets2 Stimulated Cycles3 22.4% 25.2% MVF Stimulated Cycles3 in Australia 8,902 9,190 (3.1%) MVF market share in Australia 22.4% 22.9% (0.5%) MVF Stimulated Cycles
Slide 19: Expanding domestic footprint & brand consolidation
Expanding domestic footprint & brand consolidation For personal use only 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 and Gold Coa
Slide 20: International FY17 overview
International FY17 overview • KL Fertility For personal use only Continued strong growth in volumes achieved as new fertility specialists continue to gain traction – Patient Treatments up 10.1% Relocated to state of art new IVF facility in May 2017 – early signs are very positive, reflected thro
Slide 21: FY18 Outlook
FY18 Outlook For personal use only 21 Monash IVF Group | FY17 Results Presentation
Slide 22: FY2018 Full Year Outlook
FY2018 Full Year Outlook For personal use only Monash IVF Group is well positioned to grow its future We anticipate the reported FY18 NPAT will be broadly in revenues and earnings as a result of: line with FY17. We expect market growth initiatives, • Strong underlying demand fundamentals for ARS and
Slide 23: Strategy FY18 and beyond
Strategy FY18 and beyond For personal use only 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 technolog
Slide 24: Summary
For personal use only Summary 24 Monash IVF Group | FY17 Results Presentation
Slide 25: Summary
Summary Track record of strong long term financial performance For personal use only Delivered NPAT growth of 2.9% against a back drop of a challenging industry environment FY17 results impacted by a softening in IVF industry growth rates and increased competition from low cost / bulk billing
Slide 26: Overview of Monash IVF Group
Overview of Monash IVF Group For personal use only Core Assisted Diagnostic and Ancillary Ultrasound Reproductive Services Services 22 clinics 2 specialised 17 clinics laboratories in Victoria 5 service centres and South Australia 17 Sonologists 89 Fertility Specialists 3 Australian st
Slide 27: Questions
For personal use only Questions 27 Monash IVF Group | FY17 Results Presentation