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Virtus He a lth (ASX:VRT ) F I NANCI AL RE SUL T S PRE SE NT AT I ON H1F Y18 ue sd a y 20 th F T e b rua ry, 2018 9.15a m AE DT DI SCL AI ME R T he ma te ria l in this pre se nta tio n ha s b e e n pre pa re d b y Virtus He


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SLIDE 1

Virtus He a lth (ASX:VRT )

F I NANCI AL RE SUL T S PRE SE NT AT I ON H1F Y18

T ue sd a y 20th F e b rua ry, 2018 9.15a m AE DT

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SLIDE 2

2

T he ma te ria l in this pre se nta tio n ha s b e e n pre pa re d b y Virtus He a lth L imite d ABN 80 129 643 492 (“Virtus He a lth”) a nd is g e ne ra l b a c kg ro und info rma tio n a b o ut Virtus He a lth’ s a c tivitie s c urre nt a t the da te o f this pre se nta tio n. T he info rma tio n is g ive n in summa ry fo rm a nd inc lude s fina nc ia l a nd o the r info rma tio n a nd do e s no t purpo rt to b e c o mple te . Info rma tio n in this pre se nta tio n, inc luding fo re c a st fina nc ia l info rma tio n sho uld no t b e c o nside re d a s a dvic e o r a re c o mme nda tio n to inve sto rs o r po te ntia l inve sto rs a nd do e s no t ta ke into a c c o unt inve stme nt o b je c tive s, fina nc ia l situa tio n o r ne e ds o f a ny pa rtic ula r inve sto r. T he se sho uld b e c o nside re d, with o r witho ut pro fe ssio na l a dvic e whe n de c iding if a n inve stme nt is a ppro pria te . Pe rso ns ne e ding a dvic e sho uld c o nsult the ir sto c kb ro ke r, so lic ito r, a c c o unta nt o r o the r inde pe nde nt fina nc ia l a dviso r. T he re le a se , pub lic a tio n o r distrib utio n o f this pre se nta tio n in c e rta in jurisdic tio ns ma y b e re stric te d b y la w a nd the re fo re pe rso ns in suc h jurisdic tio ns into whic h this pre se nta tio n is re le a se d, pub lishe d o r distrib ute d sho uld info rm the mse lve s a b o ut a nd o b se rve suc h re stric tio ns. T his pre se nta tio n do e s no t c o nstitute , o r fo rm pa rt o f, a n o ffe r to se ll o r the so lic ita tio n o f a n o ffe r to sub sc rib e fo r o r b uy a ny se c uritie s, no r the so lic ita tio n o f a ny vo te o r a ppro va l in a ny jurisdic tio n, no r sha ll the re b e a ny sa le , issue o r tra nsfe r o f the se c uritie s re fe rre d to in this pre se nta tio n in a ny jurisdic tio n in c o ntra ve ntio n o f a pplic a b le la w. Ce rta in sta te me nts ma de in this pre se nta tio n a re fo rwa rd-lo o king sta te me nts. T he se fo rwa rd- lo o king sta te me nts a re no t histo ric a l fa c ts b ut ra the r a re b a se d o n Virtus He a lth L imite d’ s c urre nt e xpe c ta tio ns, e stima te s a nd pro je c tio ns a b o ut the industry in whic h Virtus He a lth o pe ra te s, a nd b e lie fs a nd a ssumptio ns. Wo rds suc h a s “a ntic ipa te s”, “e xpe c ts”, “inte nds,”, “pla ns”, “b e lie ve s”, “se e ks”, “e stima te s”, a nd simila r e xpre ssio ns a re inte nde d to ide ntify fo rwa rd-lo o king sta te me nts. T he se sta te me nts a re no t g ua ra nte e s o f future pe rfo rma nc e a nd a re sub je c t to kno wn a nd unkno wn risks, unc e rta intie s a nd o the r fa c to rs, so me o f whic h a re b e yo nd the c o ntro l o f Virtus He a lth, a re diffic ult to pre dic t a nd c o uld c a use a c tua l re sults to diffe r ma te ria lly fro m tho se e xpre sse d o r fo re c a ste d in the fo rwa rd-lo o king sta te me nts. Virtus He a lth c a utio ns inve sto rs a nd po te ntia l inve sto rs no t to pla c e undue re lia nc e o n the se fo rwa rd-lo o king sta te me nts, whic h re fle c t the vie w o f Virtus He a lth o nly a s o f the da te o f this pre se nta tio n. T he fo rwa rd-lo o king sta te me nts ma de in this pre se nta tio n re la te o nly to e ve nts a s o f the da te o n whic h the sta te me nts a re ma de . Virtus He a lth will no t unde rta ke a ny o b lig a tio n to re le a se pub lic ly a ny re visio ns o r upda te s to the se fo rwa rd-lo o king sta te me nts to re fle c t e ve nts, c irc umsta nc e s o r una ntic ipa te d e ve nts o c c urring a fte r the da te o f this pre se nta tio n e xc e pt a s re q uire d b y la w o r b y a ny a ppro pria te re g ula to ry a utho rity. A numb e r o f fig ure s, a mo unts, pe rc e nta g e s, e stima te s, c a lc ula tio ns o f va lue a nd fra c tio ns in this pre se nta tio n a re sub je c t to the e ffe c t o f ro unding . Ac c o rding ly, the a c tua l c a lc ula tio n o f the se fig ure s ma y diffe r fro m the fig ure s se t o ut in this pre se nta tio n. In a dditio n, a numb e r o f fig ure s ha ve b e e n c a lc ula te d o n the b a sis o f a ssume d e xc ha ng e ra te s, a s se t o ut in this pre se nta tio n. T

  • the ma ximum e xte nt pe rmitte d b y la w, ne ithe r Virtus He a lth no r its re la te d b o die s c o rpo ra te , dire c to rs, o ffic e rs, e mplo ye e s, a g e nts,

c o ntra c to rs, a dvise rs no r a ny o the r pe rso n, a c c e pts, a nd e a c h e xpre ssly disc la ims, a ny lia b ility, inc luding witho ut limita tio n a ny lia b ility a rising fro m fa ult o r ne g lig e nc e , fo r a ny e rro rs o r missta te me nts in, o r o missio ns fro m, this pre se nta tio n o r a ny dire c t, indire c t o r c o nse q ue ntia l lo ss a rising fro m the use o f this pre se nta tio n o r its c o nte nts o r o the rwise a rising in c o nne c tio n with it.

DI SCL AI ME R

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SLIDE 3

3

RE SUL T S & OPE RAT I ONAL OVE RVI E W H1F Y18

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SLIDE 4

4

4

E BIT DA Mar gin

1.9%

H1F Y18 F ina nc ia l Re sults Hig hlig hts

  • Virtus re ma ins le a de r in a n inc re a sing ly c o mpe titive do me stic ARS ma rke t; o ur uniq ue

pla tfo rm e na b le s pa rtic ipa tio n a c ro ss a ll se g me nts

  • He a dline e a rning s g ro wth drive n b y c o nsiste nt Austra lia n ARS pe rfo rma nc e ; c o ntinue d

g ro wth in dia g no stic s & inte rna tio na l a c tivitie s suppo rte d b y e ffe c tive c o st ma na g e me nt

  • L

e a ding de mo g ra phic drive rs fo r fe rtility se rvic e s c o ntinue to drive se c to r g ro wth

Re ve nue 1.8%

$133.8m

E BIT DA 9.7%

$34.8m

NPAT attr ibutable to

  • r

dinar y e quity holde r s

12.6%

$16.6m

E PS 12.4%

20.62 c e nts

Inte r im Divide nd

14 c ps

fully fr anke d

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SLIDE 5

5

AUST RAL I AN SE GME NT PE RF ORMANCE

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SLIDE 6

6

6

  • Ove ra ll ma rke t vo lume a lo ng e a ste rn se a b o a rd up 6.1% o n pc p
  • Drive n b y 24.4% g ro wth in Que e nsla nd - unde rlying ma rke t g ro wth 1.8% e xc luding QL

D

  • Virtus Austra lia o ve ra ll c yc le a c tivity H1F

Y18 fla t a t 7,929 c yc le s

  • Virtus NSW g re w 8.0% o utpe rfo rming ma rke t g ro wth o f 3.0%
  • Virtus VI

C g re w 1.2% o n pc p a he a d o f 0.3% ma rke t g ro wth

  • Virtus o ve ra ll g ro wth o ffse t b y ma rke t sha re lo ss in pric e se nsitive QL

D a nd T AS ma rke ts

  • Virtus T

F C a c tivity inc re a se d 9.3%

  • Se rvic e mo de l a nd pric ing re vie ws impro ve d pe rfo rma nc e in VI

C a nd NSW

  • Ma rg in a nd vo lume e ro sio n in the pric e se nsitive QL

D ma rke t

  • T

F Cs re pre se nt 13.7% o f o ve ra ll Virtus Austra lia n a c tivity (H1F Y17:12.4%)

  • Austra lia n se g me nt Re ve nue $111m in line with pc p
  • Austra lia n se g me nt E

BI T DA up 6.2% to $36.0m (H1F Y17: $33.9m) a s a re sult o f

  • pe ra tio na l e ffic ie nc ie s a nd c o st o ut initia tive s

Austra lia n Ope ra tio ns F e rtility

Austra lia ’ s ma rke t le a ding F e rtility Pro vide r

Austra lia n IVF Cyc le s So urc e : Me dic a re Austra lia Re ve nue a nd Austra lia n se g me nt E BIT DA inc lude s Dia g no stic s a nd Da y Ho spita ls

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SLIDE 7

7

7

Annua l g ro wth ra te va ria b ility is no rma l – H1F Y18 vo lume impro ve me nts fo llo wing a sub due d F Y17

  • H1F

Y18 re fle c ts na tio na l ma rke t g ro wth o f 5.5% o ve r pc p to 23,095 c yc le s

  • Unde rlying ma rke t g ro wth is 1.8% (e xc luding QL

D)

* Gro wth rate s to 2017 re fle c t annual g ro wth rate s – H1 g ro wth rate s re fle c t De c e mb e r 2018 ye ar to date g ro wth

Austra lia n I VF Cyc le s So urc e : Me d ic a re Austra lia

  • 8%
  • 6%
  • 4%
  • 2%

0% 2% 4% 6% 8% 10%

2010 2012 2014 2016 H1F Y18

Annua l Industr y Gr

  • wth r

a te s (F Y10-17)

*Annua l Gro wth Ra te s

20,758 21,719 21,432 23,383 21,890 23,095 19,000 19,500 20,000 20,500 21,000 21,500 22,000 22,500 23,000 23,500

H1F Y13 H1F Y14 H1F Y15 H1F Y16 H1F Y17 H1F Y18

Ma r ke t Volume s (HY13-18)

Numb e r o f I VF Cyc le s

Va ria b ility in Austra lia n Ma rke t Gro wth

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SLIDE 8

8

8

  • Dia g no stic re ve nue inc re a se d 5.8% a nd E

BI T DA inc re a se d 31.2% o ve r pc p

  • E

BI T DA g ro wth drive n b y sig nific a nt o pe ra tio na l impro ve me nts in F Y17

  • Re ve nue g ro wth re fle c ts
  • Stro ng e r I

VF a c tivity

  • Co ntinue d g ro wth o f PGD/ PGS up 27.3% - utilisa tio n a t 18.9% o f fre sh c yc le s

H1F Y18 (H1F Y17: 12.3%)

  • 6% inc re a se in ne w re fe rring Do c to rs
  • F
  • c us o n furthe r g ro wth thro ug h;
  • Ne xt Ge ne ra tio n Se q ue nc ing , g e ne tic sc re e ning a nd e xpa nsio n o f PGD/ PGS

se rvic e s e xte rna lly

  • E

xpa nde d pa tho lo g y te sting pla tfo rm

  • E

xpa nde d g e ne ra l pa tho lo g y c o lle c tio n c e ntre fo o tprint

  • E

xpa nsio n o f Virtus Dia g no stic se rvic e s in T a sma nia & ACT

Stro ng re ve nue a nd E BI T DA g ro wth

Austra lia n Ope ra tio ns Dia g no stic s

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SLIDE 9

9

9

Da y Ho spita l re ve nue inc re a se d 2.0%

  • I

nc re a se mo stly re fle c ts I VF a c tivity in NSW a nd VI C

  • De c re a se in No n-I

VF pro c e dure re ve nue o f 1.3% o n pc p a c ro ss a ll da y ho spita ls

  • Co ntinue d fo c us o n No n-I

VF surg ic a l re la tio nships & se rvic e s to impro ve utilisa tio n in F Y18

  • Virtus Ma ro ub ra fe rtility c linic , la b o ra to ry a nd da y

ho spita l re lo c a tio n to ne w fa c ility in Ale xa ndria , NSW to b e c o mple te d in 2018

Austra lia n Ope ra tio ns Da y Ho spita ls

Artist impression

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SLIDE 10

10

I NT E RNAT I ONAL SE GME NT PE RF ORMANCE

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SLIDE 11

11

11

I nte rna tio na l Ope ra tio ns

  • I

nte rna tio na l se g me nt E BI T DA up 74% to $4.6M drive n b y

  • Aa g a a rd a c q uisitio n in De nma rk
  • I

mpro ve me nts to Sing a po re pe rfo rma nc e

  • Ove ra ll inte rna tio na l re ve nue is no w 16% o f to ta l re ve nue
  • Hig he r le ve l o f lo c a l ma na g e me nt a nd le a de rship to
  • I

mpro ve o pe ra tio na l pe rfo rma nc e ; a nd

  • Drive M&A a c tivitie s

I nte rna tio na l se g me nt re ma ins ke y to o ur dive rsific a tio n stra te g y

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SLIDE 12

12

12

E BI T DA impa c te d b y so fte r H1F Y18 vo lume s

  • 1,099 c yc le s pe rfo rme d in H1F

Y18 (H1F Y17: 1,170) re fle c ting lo we r a c tivity a t SI MS

  • Re ve nue do wn 3.0% to €10.7m (lo c a l c urre nc y)
  • E

BI T DA (lo c a l c urre nc y) do wn 6.7% o n pc p a s a re sult o f so fte r vo lume a nd ma rke t re nt re vie ws

  • F

irst put o ptio n to a c q uire a furthe r 15% sta ke in SI MS g ro up wa s e xe rc ise d in Oc to b e r 2017

I rish Ope ra tio ns

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SLIDE 13

13

13

  • Suc c e ssful inte g ra tio n with Virtus de mo nstra ting va lue
  • f c o lla b o ra tive me dic a l & sc ie ntific mo de l
  • 254 fre sh c yc le s; re ve nue DK

K 12.4m; E BI T DA DK K 6.9m

  • F

urthe r Sc a ndina via n o ppo rtunitie s b e ing e xplo re d

Aa g a a rd F e rtility Clinic c o nso lida te s a nd de live rs

Da nish Ope ra tio ns

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SLIDE 14

14

14

  • 202 c yc le s pe rfo rme d in Sing a po re in H1F

Y18 (H1F Y17: 172)

  • H1F

Y18 E BI T DA SG$245,000 c o mpa re d to pc p lo ss

  • f SG$192,000 (lo c a l c urre nc y)
  • Sc ie ntific a ppro a c h driving suc c e ssful pa tie nt
  • utc o me s a ttra c ting do c to rs a nd pa tie nts a like
  • F

ive c o ntra c te d do c to rs plus fo ur a sso c ia te d spe c ia lists utilising the fa c ility

I nc re a se d c yc le s drive po sitive E BI T DA

Sing a po re Ope ra tio ns

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SLIDE 15

15

F I NANCI AL RE SUL T S H1F Y18

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SLIDE 16

16

16

Summa ry I nc o me Sta te me nt

Statuto r y and adjuste d r e sults

No te s: Sha de d a re a indic a te s IF RS disc lo sure s H1F Y18 F ina nc ia l Sta te me nts; re fe r ne xt pa g e fo r re c o nc ilia tio n o f de ta ile d a djustme nts fro m sta tuto ry pro fit to a djuste d pro fit.

Statutor y Re sults Adjustme nt Adjuste d Re sults A $ millions H1F Y18 H1F Y17 H1F Y18 H1F Y17 H1F Y18 H1F Y17

Re ve nue 133.8 131.4 133.8 131.4

Se g me nt E BI T DA 40.6 36.5 40.6 36.5

E BIT DA 34.8 31.7 0.3 (0.3) 35.1 31.5

De pre c ia tio n a nd a mo rtisa tio n (6.1) (6.0) (6.1) (6.0) E BI T 28.7 25.7 0.3 (0.3) 29.0 25.4 I nte re st (3.9) (3.9) 0.5 0.5 (3.4) (3.4)

Profit be fore inc ome ta x 24.8 21.8 0.8 0.2 25.6 22.0

I nc o me ta x e xpe nse (7.5) (6.2) (0.1) (7.5) (6.3)

Profit a fte r inc ome ta x 17.3 15.6 0.8 0.1 18.1 15.7

Pro fit a fte r inc o me ta x a ttrib uta b le to no n-c o ntro lling inte re st (0.7) (0.9) (0.7) (0.9)

Profit a fte r inc ome ta x a ttributa ble to ordina ry e quity holde rs 16.6 14.7 0.8 0.1 17.4 14.8

E a rning s pe r sha re (c e nts) 20.62 18.35 Dilute d E a rning s pe r sha re (c e nts) 20.48 18.21

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SLIDE 17

17

17

Sta tuto ry Pro fit Re c o nc ilia tio n to Adjuste d Pro fit

Ne t lo ss fr

  • m no n-c ash tr

ansac tio n adjustme nts and tr ansac tio n e xpe nse s - $0.8m

No te s: 1. No n c a sh inte re st re la te s to the unwinding o f the disc o unt o n the put lia b ilitie s a nd c o nting e nt c o nside ra tio n.

$ Million H1F Y18 H1F Y17

Profit a fte r inc ome ta x a ttributa ble to ordina ry e quity holde rs 16.6 14.7

F a ir Va lue Adjustme nt to put lia b ilitie s 0.0 (0.5) F a ir Va lue Adjustme nt to c o nting e nt c o nside ra tio n 0.0 (0.5) No n Ca sh I nte re st1 0.5 0.5 T ra nsa c tio n c o sts 0.3 0.8 T a x-e ffe c t o n a ll a djustme nts 0.0 (0.1)

Adjuste d NPAT 17.4 14.8

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18

18

K e y Re ve nue a nd E BI T DA Drive rs fo r H1F Y2018

1H F Y18 Re ve nue drive n by:

  • Stro ng NSW full se rvic e a nd T

F C pe rfo rma nc e

  • I

mpro ve me nt in VI C full se rvic e a nd T F C vo lume s

  • Stro ng Dia g no stic s re ve nue g ro wth
  • F

irst time c o ntrib utio n fro m Aa g a a rd

Pa rtia lly offse t by:

  • QL

D ma rke t sha re lo ss

  • T

AS ma rke t sha re lo ss

1H F Y18 E BIT DA drive n by:

  • Suc c e ssful imple me nta tio n o f c o st o ut a nd o pe ra tio na l

e ffic ie nc y initia tive s o utline d la te F Y17

  • Stro ng re c o ve ry in VI

C pro fita b ility

  • Stro ng E

BI T DA g ro wth in Dia g no stic s

  • Po sitive Sing a po re E

BI T DA

Pa rtia lly offse t by:

  • L
  • ss o f ma rke t sha re a nd ma rg in e ro sio n in QL

D

  • I

nc re a se d c o mpe titio n in we a ke r T AS ma rke t

101.2 114.5 132.3 131.4 133.8

H1F Y14 H1F Y15 H1F Y16 H1F Y17 H1F Y18

H1F Y14-18 Re ve nue

32.0 32.8 36.2 31.7 34.8

H1F Y14 H1F Y15 H1F Y16 H1F Y17 H1F Y18

H1F Y14-18 Gr

  • up E

BIT DA

E BIT DA mar gin impr

  • ve me nt 1.9%
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SLIDE 19

19

19

Ca sh Pe rfo rma nc e

Str

  • ng Ope r

ating c ash flo w

Ope r ating c ash flows use d to fund:

  • Ca pe x o f $5.6m
  • E

xe rc ise o f the first put o ptio n to a c q uire a furthe r 15% o f the SI Ms Gro up (I re la nd) o f $7.4m

  • Divide nds o f $9.6m
  • Vo lunta ry de b t re pa yme nt o f $6m

Summar y (A$m) H1F Y18 (A$m) H1F Y17 (A$m)

Group E BIT DA 34.8 31.7

Cha ng e s in o the r o pe ra ting a sse ts / lia b ilitie s* 3.9 (8.0) Ne t fina nc ia l c o sts (3.2) (3.3) I nc o me T a x (5.2) (4.9) Othe r 0.4 0.6

Ope ra ting Ca sh F low 30.7 16.1

Ne t CAPE X (5.6) (4.6) Pa yme nt fo r a c q uisitio n o f no n-c o ntro lling inte re st (7.4) 0.0 Vo lunta ry de b t re pa yme nt (6.0) 0.0

F re e Ca shflow 11.7 11.5

Divide nds pa id (9.6) (12.1)

F re e Ca sh F low a fte r divide nds 2.1 (0.6)

*excludes non cash adjustments (share based payments, non-cash interest and forex)

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SLIDE 20

20

20

Sta te me nt o f F ina nc ia l Po sitio n

Cash balanc e

At no rma l le ve l a fte r utilisa tio n o f e xc e ss c a sh o n Ca pe x/ Put o ptio n e xe rc ise , divide nds a nd a vo lunta ry de b t re pa yme nt o f $6m

Ge ar ing

  • L

e ve ra g e ra tio o f 1.9x a djuste d g ro up E BI T DA (L T M)

  • F

ull c o mplia nc e with suffic ie nt he a d ro o m unde r b o th inte re st c o ve r a nd le ve ra g e ra tio s

  • F

unding c a pa c ity a va ila b le , $67m re fle c ting $57m

  • f unuse d fa c ilitie s a nd $10m o f unc o mmitte d c a sh

Othe r fina nc ia l lia b ilitie s de c re a se a s a re sult o f the e xe rc ise o f the first put o ptio n to a c q uire a furthe r 15%

  • f the SI

Ms Gro up in I re la nd

Divide nd pr

  • pose d

14 c ps, (pc p13 c ps) fully fra nke d pa ya b le o n 17th April 2018

A $ millions Statutor y De c 17 Statutor y June 17

Ca sh 28.7 27.3 T ra de a nd o the r re c e iva b le s 9.8 12.3 I nve nto rie s 0.8 0.7 E q uity a c c o unte d inve stme nts 1.5 1.5 Othe r fina nc ia l a sse ts 3.5 3.0 PP&E 29.2 29.0 De fe rre d ta x a sse ts 4.9 4.6 I nta ng ib le a sse ts 412.7 411.5

T

  • ta l Asse ts

491.1 489.9

T ra de a nd o the r pa ya b le s 23.7 22.1 De fe rre d re ve nue 8.1 8.2 Bo rro wing s 147.7 153.6 De fe rre d ta x lia b ility 0.6 0.6 Pro visio ns 9.8 9.8 Curre nt ta x lia b ilitie s 3.0 0.4 Othe r fina nc ia l L ia b ilitie s 20.2 26.8

T

  • ta l L

ia bilitie s 213.1 221.5 Ne t Asse ts 278.0 268.4

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SLIDE 21

21

VIRT US HE AL T H #1 F OR F E RT IL IT Y

Cre a ting mo re c hub b y c he e ks tha n a nyo ne e lse

ST RAT E GY & OUT L OOK

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SLIDE 22

22

22

Purpo se : T

  • he lp wo me n a nd me n a c hie ve the ir a spira tio ns to c re a te a fa mily

Virtus He a lth Stra te g y

Ambition

T

  • be a le ading global pr
  • vide r
  • f ARS base d on;
  • E

xtra o rd ina ry c a re : o ur pa tie nts b e ing a t the c e ntre

  • f e ve rything we d o
  • Clinic a l & sc ie ntific

e ffe c tive ne ss

  • Bre a d th o f c a pa b ility a c ro ss

ARS va lue c ha in

  • Ma rke t le a d e rship in c ho se n

g e o g ra phie s & ma rke t se g me nts

Gr

  • wth Str

ate gy

ARS

(Do me stic & Inte rna tio na l) Ma rke t pe ne tra tio n b y a c q uisitio n, g re e nfie ld &

  • rg a nic g ro wth
  • Pa tie nt c e ntric

c a re

  • Re se a rc h d rive n

se rvic e d e ve lo pme nt

Day Hospitals

(Do me stic ) Optimise utilisa tio n & e ffic ie nc y Oppo rtunistic d o me stic a c q uisitio n

Diagnostic s

(Do me stic )

L e ading minds, le ading sc ie nc e

L e ve ra g e fe rtility, g e ne tic s & g e ne ra l pa tho lo g y te sting fo o tprint Ma ximise d ive rsific a tio n

  • ppo rtunitie s
slide-23
SLIDE 23

23

23

Virtus is we ll pla c e d to ma na g e industry c ha lle ng e s a nd va ria b ility

Inte r na tional

  • Co ntinue to g ro w o ur

inte rna tio na l ne two rk

  • F
  • c us o n re ve nue g ro wth

in nic he ma rke t se g me nts a nd ta rg e te d g e o g ra phie s

  • De ve lo p a nd e nha nc e

re puta tio n within e xisting fo o tprint Austr a lia n F e r tility Busine ss

  • Ac c e le ra te sc ie ntific a nd

te c hno lo g y a dva nc e s to de live r e xtra o rdina ry pa tie nt c a re a nd

  • utc o me s
  • T

a ilo re d c linic a l a nd se rvic e de live ry mo de ls (QL D, T AS, Re g io na l NSW)

  • Ope ra tio na l e ffic ie nc ie s
  • Re lo c a tio n to purpo se b uilt fe rtility

c linic a nd la b o ra to ry in Ale xa ndria NSW

Str ate gic Pr ior itie s

  • E

xtra o rdina ry pa tie nt c a re

  • Co ntinue to drive sha re ho lde r va lue – thro ug h o rg a nic g ro wth a nd a c q uisitio n a c tivity in E

uro pe Dia g nostic s & Da y Hospita ls Ope r ational Pr ior itie s

Dia g nostic s

  • E

xpa nd g e ne tic & pa tho lo g y se rvic e

  • Gro w e xte rna l re fe rre rs
  • E

xpa nd c o lle c tio n c e ntre fo o tprint

Da y Hospita l

  • I

nc re a se b usine ss de ve lo pme nt to ta rg e t no n-I VF pro c e dura l g ro wth

  • E

xpa nsio n o f da y ho spita l se rvic e s a t Ale xa ndria , NSW

Stra te g ic & Ope ra tio na l Prio ritie s

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SLIDE 24

24

24

ARS is a lo ng -te rm g ro wth ma rke t

  • De mo g ra phic drive rs fo r ARS g ro wth re ma in fa vo ura b le g lo b a lly
  • Virtus dive rsifie d mo de l, sc a le & g e o g ra phic a l re a c h pro vide s a n unriva lle d pla tfo rm fo r

pa rtic ipa tio n in a ll ke y fe rtility se g me nts

  • Sig nific a nt o pe ra tio na l c ha ng e s ha ve stre ng the ne d do me stic pro fita b ility
  • Co ntinue d stro ng pro fit g ro wth fro m dia g no stic s pa rtic ula rly in g e ne tic sc re e ning
  • Drive sha re ho lde r va lue – thro ug h o rg a nic g ro wth a nd inte rna tio na l a c q uisitio n

Vir tus is we ll po sitio ne d fo r c o ntinue d gr

  • wth

Co nc lusio n

slide-25
SLIDE 25

25

APPE NDI CE S

slide-26
SLIDE 26

26

26

K PI s – Austra lia n Se g me nt

Vir tus Note H1F Y18 H1F Y17 Change

Numb e r o f I VF Cyc le s in Virtus Austra lia 1 7,929 7,972 (0.5%) T F C c yc le s a s a pe rc e nta g e o f to ta l Virtus I VF c yc le s 13.7% 12.4% 1.3% Numb e r o f I VF Cyc le s in NSW, QL D, T AS, VI C, ACT ma rke t 19,804 18,665 6.1% E a ste rn sta te s ma rke t sha re 1 40.0% 42.7% (2.7%) Na tio na l ma rke t sha re 1 34.3% 36.4% (2.1%) T re a tme nt vo lume 2 15,405 15,416 (0.1%) Ave ra g e numb e r o f F e rtility Spe c ia lists 109 105 3.3% Ave ra g e numb e r o f c yc le s pe r F e rtility Spe c ia list 73 76 (3.7%) Ave ra g e a g e o f F e rtility Spe c ia lists 52 50 3.7% Ave ra g e to ta l re ve nue pe r c yc le (A$) 13,973 13,940 0.2% L a b o ur a s a % o f to ta l re ve nue 31.4% 31.2% (0.2%) Pro vide r fe e s a s a % o f to ta l re ve nue 15.1% 15.3% 0.2% Re po rte d se g me nt E BI T DA ma rg in % 32.3% 30.3% 2.0%

No te s: 1. Implie d la st six mo nths ma rke t sha re is b a se d o n fre sh a nd c a nc e lle d c yc le s in NSW,VIC, QL D, T AS a nd ACT 2. T

  • ta l tre a tme nts inc lude s fre sh c yc le s, c a nc e lle d c yc le s, IUI

s a nd F E T s

slide-27
SLIDE 27

27

27

I nte rna tio na l Dive rsific a tio n

Virtus I nte rna tio na l E xpa nsio n

slide-28
SLIDE 28

28

28

T re a tme nt Ana lysis

53% 35% 12%

T r e atme nt Mix

Cyc le F ro ze n AI / OI

Vir tus Cyc le s

7,346 7,617 7,663 8,510 7,972 7,929 785 1,272 1,367 1,555

HFY13 HFY14 HFY15 HFY16 HFY17 HFY18 Australian Cycles International Cycles

8,448 9,782 9,339 9,484

slide-29
SLIDE 29

29

29

Austr alia

  • F

e de ra l He a lth De pa rtme nt re vie w o f Me dic a re Be ne fits Sc he dule o ng o ing

  • Me dic a l Se rvic e s Adviso ry Co mmitte e (MSAC) re vie w o f

PGD funding o ng o ing

Ir e land

  • Go ve rnme nt c o nside ring funding fo r fe rtility se rvic e s –

c urre ntly priva te ly funde d

  • Pro po se d c ha ng e to Childre n & F

a mily Re la tio nships Ac t 2015 pre c luding a no nymo us e g g do na tio n

Singapor e

  • Ministry o f He a lth c o nsulting with he a lth pro fe ssio na ls o n

PGD/ PGS a c c e ss in Sing a po re

De nmar k

  • F

a vo ura b le c ha ng e s to do no r se rvic e s a nd inte rna tio na l use o f g a me te s

Re g ula to ry E nviro nme nt

slide-30
SLIDE 30

30

30

VI RT US HE AL T H NE T WORK OF CARE

ASSIST E D RE PRODUCT IVE SE RVICE S SPE CIAL ISE D DIAGNOST ICS DAY HOSPIT AL S

Austra lia 41 Ire land 3 Sing a po re 1 De nma rk 1 F E RT IL IT Y CL INICS

46

H

E mb ryo lo g y 26 Andro lo g y 29 Ge ne ra l Pa tho lo g y 5 Ge ne tic s 2 L ABORAT ORIE S

62

IVF a nd no n-IVF pro c e d ure s

DAY HOSPIT AL S

6

H

F E RT IL IT Y SPE CIAL IST S

951 124 231

NUR SE S, COUNSE L L OR S, PAT IE NT SUPPOR T (inc l DIAGNOST ICS)

SCIE NT IST S

slide-31
SLIDE 31

T HANK YOU