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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 Y20 T ue sd a y 18 F e b rua ry 2020, 9.00a m AE DT 1 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


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SLIDE 1

1

Virtus He a lth (ASX:VRT )

F I NANCI AL RE SUL T S PRE SE NT AT I ON H1F Y20

T ue sd a y 18 F e b rua ry 2020, 9.00a 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 Y20

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SLIDE 4

4

4

E BIT DA Mar gin (e xc l.

AASB 16 ‘L e ase s’ impac t)1

0.5%

H1F Y20 F ina nc ia l Re sults

  • 1. Virtus a do pte d AASB16 ‘ L

e a se s’ e ffe c tive 1 July 2019, re sulting in a n inc re a se to E BIT DA o f $7.4m a nd de c re a se to NPAT

  • f $0.2m fo r the ha lf ye a r to

31 De c e mb e r 2019. T he c o mpa ra tive pe rio d ha s no t b e e n re sta te d, re fe r to no te 1 o f ha lf ye a r re po rt a nd slide 19 fo r furthe r de ta ils

Re ve nue 1.0%

$142m

E BIT DA $39.5m 1 NPAT attr ibutable to

  • r

dinar y e quity holde r s

2.3%

$15.0m 1

E PS 2.4%

18.65 c e nts

Inte r im Divide nd

12 c ps

fully fr anke d

Unde r lying E BIT DA stable at $32.1m (e xc l. AASB 16 L e ase s impac t)

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SLIDE 5

5

5

Vir tus maintains Austr alian mar ke t le ade r ship position

  • Virtus o utpe rfo rme d o ve ra ll ma rke t g ro wth in Austra lia
  • Austra lia n I

VF c linic E BI T DA inc re a se d b y 4.5% (e xc luding impa c t o f AASB 16 ‘ L e a se s’ )

  • Stro ng g ro wth in Austra lia n lo w pric e vo lume s
  • L
  • we r pre mium se rvic e vo lume s
  • No n-I

VF da y ho spita l pro c e dure vo lume inc re a se d 5.7%

  • I

nte rna tio na l o pe ra tio ns ma inta ine d E BI T DA de spite so fte r vo lume s – E BI T DA impro ve me nt in I re la nd, Sing a po re a nd UK

  • Ma na g e me nt fo c us o n ma rg in impro ve me nt inc luding re struc ture initia tive s

Virtus He a lth Ove rvie w

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SLIDE 6

6

AUST RAL I AN SE GME NT PE RF ORMANCE

Se gme nt E BIT DA

$39.7m

Se gme nt Re ve nue

0.3% $112.8m

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SLIDE 7

7

7

Austra lia n o pe ra tio ns

Defend and build premium business

  • Gro wth in Que e nsla nd a nd Vic to ria n pre mium se rvic e vo lume s ma inta ine d
  • Pre mium se rvic e vo lume s d e c line d in Ne w So uth Wa le s a nd T

AS fro m so ft ma rke t c o nd itio ns

Grow low price volume

  • Vo lume g ro wth o f 30.2% a c hie ve d (no w re pre se nts 22% (pc p: 17.3%) o f
  • ve ra ll vo lume s
  • Virtus will c o ntinue to g ro w this se g me nt to a d d re ss ma rke t d e ma nd

Grow Diagnostics revenue

  • Sta b le re ve nue
  • Co st ma na g e me nt initia tive s imple me nte d
  • Inc re a se d c a pa c ity a nd ra ng e o f te sts

Grow non IVF Day Hospital revenue

  • Re ve nue g ro wth o f 6.8% o n no n-IVF

pro c e d ure s

  • Busine ss d e ve lo pme nt initia tive s imple me nte d inc re a sing vo lume s a t ne wly

c o mmissio ne d fa c ilitie s

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SLIDE 8

8

8

  • Ava ila b le ma rke t vo lume up 1.2% H1F

Y20 o n pc p a lo ng e a ste rn se a b o a rd

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

Y20 inc re a se d 2.7% to 8,302 c yc le s (pc p 8,085)

  • Virtus VI

C g re w 10.2% o n pc p, ma rke t g ro wth 1.7%

  • Virtus QL

D g re w 6.2% o n pc p, ma rke t g ro wth 4.4%

  • Virtus NSW (inc ACT

) de c line d b y 3.4% o n pc p, ma rke t de c line 0.5%

  • Virtus T

AS de c line d b y 20.3% o n pc p, ma rke t de c line 5%

  • Virtus T

F Cs de live re d lo w pric e vo lume inc re a se o f 30.2%

  • I

mpro ve d pe rfo rma nc e a c ro ss a ll sta te s

  • L
  • w pric e c yc le s re pre se nt 22.0% o f o ve ra ll Virtus Austra lia n a c tivity (H1F

Y19: 17.3%)

  • Ne t inc re a se in I

VF c linic E BI T DA o f $1.3m

Austra lia n Ope ra tio ns

Assiste d Re pro duc tive Se rvic e s (“ARS”)

E BIT DA inc r e ase s

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SLIDE 9

9

9

  • Dia g no stic re ve nue inc re a se d 0.2% a nd E

BI T DA de c re a se d 30.2% o ve r pc p impa c te d b y:

  • Co ntinue d so ftne ss in PGT

utilisa tio n, de c lining to 12.9% o f fre sh c yc le s H1F Y20 (F Y19: 14.6%) due to c linic a l pra c tic e c ha ng e

  • I

nc re a se d c o mplia nc e c o sts

  • Stra te g ic initia tive s to a ddre ss pe rfo rma nc e :
  • Adva nc e d te c hno lo g ie s fo r no n-inva sive PGT

c urre ntly unde r sc ie ntific e va lua tio n

  • Busine ss de ve lo pme nt to inc re a se inte rna l a nd e xte rna l spe c ia list re fe rra ls
  • Co st o ut initia tive s in pro g re ss to impro ve ma rg in – b e ne fits to b e re a lise d in future pe rio ds

Diagnostic r e ve nue stable , E BIT DA impac te d

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

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SLIDE 10

10

10

Day Hospital E BIT DA stable

  • E

BI T DA impro ve me nt fro m no n-I VF pro c e dure s o ffse t b y lo we r I VF pro c e dure s fro m so fte r pre mium se rvic e vo lume s in NSW

  • Ale xa ndria E

BI T DA impro ve d b y $0.3m o ve r pc p a s mo re no n-I VF surg e ry is se c ure d

  • I

nc re a se in no n-I VF pro c e dure re ve nue o f 6.8% o n pc p a c ro ss a ll Spe c ia list Da y Ho spita ls

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

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SLIDE 11

11

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

Se gme nt E BIT DA

$6.8m

Se gme nt Re ve nue

3.5% $29.2m

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SLIDE 12

12

12

E BIT DA up on pc p

  • 1,075 c yc le s pe rfo rme d in H1F

Y20 (H1F Y19: 1,094)

  • Re ve nue fla t a t €10.5m (lo c a l c urre nc y) de spite

lo we r fre sh c yc le vo lume s due to inc re a se in fro ze n c yc le s

  • E

BI T DA (lo c a l c urre nc y) up 17.1% o n pc p a s a re sult

  • f c o st ma na g e me nt initia tive s

I rish Ope ra tio ns

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SLIDE 13

13

13

  • 849 c yc le s pe rfo rme d in H1F

Y20 (H1F Y19: 930)

  • Re ve nue do wn 7.5% a t kr25.6m (lo c a l c urre nc y)
  • E

BI T DA (lo c a l c urre nc y) do wn 45.9% o n pc p Da nish c linic s e xpe rie nc e d a c ha lle ng ing six mo nths impa c te d b y:

  • Re duc tio n in c yc le s fro m Swe de n (re la xa tio n o f do no r

re g ula tio ns)

  • Sho rt te rm do c to r re so urc ing issue s a t Aa g a a rd - no w

a ddre sse d

Da nish Ope ra tio ns

E BIT DA down on pc p

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SLIDE 14

14

14

  • CF

C pe rfo rme d 215 fre sh c yc le s (H1F Y19: 228)

  • Re ve nue up 13.4% fro m stro ng e r do no r a c tivity a nd va lue

a dd NHS o utpa tie nt a c tivitie s

  • E

BI T DA up 125% o ve r pc p

UK Ope ra tio ns

Comple te F e r tility r e ve nue and E BIT DA impr

  • ve s
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SLIDE 15

15

15

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

Y20 (H1F Y19: 176)

  • Re ve nue up 13.5% o n pc p
  • E

BI T DA up 77.4% c o mpa re d to pc p (lo c a l c urre nc y)

Volume s and E BIT DA c ontinue to gr

  • w

Sing a po re Ope ra tio ns

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SLIDE 16

16

F I NANCI AL RE SUL T S H1F Y20

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SLIDE 17

17

17

Summa ry I nc o me Sta te me nt

No te s: 1- E xc lude s $7.4m o f le a se re pla c e d b y De pre c ia tio n a nd Inte re st c ha rg e s o n a do ptio n o f AASB 16 ‘ L e a se s’ in H1F Y20 2 - Inc lude s $5.9m o f de pre c ia tio n o n Rig ht-o f-use a sse ts a rising fro m a do ptio n o f AASB 16 ‘ L e a se s’ in H1F Y20 3 - Inc lude s $1.7m o f inte re st o n le a se lia b ilitie s a rising fro m a do ptio n o f AASB 16 ‘ L e a se s’ in H1F Y20 Sha de d a re a indic a te s IF RS disc lo sure s H1F Y20 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 $Millions H1F Y20 H1F Y19 H1F Y20 H1F Y19 H1F Y20 H1F Y19

Re ve nue 142.1 140.7 142.1 140.7

Se g me nt E BI T DA1 46.5 38.9 46.5 38.9

E BIT DA1 39.5 32.4

(0.8) (0.6)

38.8 31.8

De pre c ia tio n a nd a mo rtiza tio n 2 (12.6) (6.6) (12.6) (6.6) E BI T 26.9 25.8 (0.8) (0.6 ) 26.2 25.2 I nte re st 3 (5.5) (4.9) 0.2 0.7 (5.3) (4.2)

Profit be fore inc ome ta x 21.4 20.9

(0.5) 0.1

20.9 21.0

I nc o me ta x e xpe nse (5.9) (6.0) (5.9) (6.0)

Profit a fte r inc ome ta x 15.5 14.9

(0.5) 0.1

15.0 15.0

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 (0.5) (0.3)

  • (0.5)

(0.3)

Profit a fte r inc ome ta x a ttributa ble to ordina ry e quity holde rs 15.0 14.6

(0.5) 0.1

14.5 14.7

E a rning s pe r sha re (c e nts) 18.65 18.21 Dilute d e a rning s pe r sha re (c e nts) 18.48 18.10

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SLIDE 18

18

18

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

Ne t move me nt from non- c a sh tra nsa c tion ite ms, tra nsa c tion e xpe nse s a nd CE O tra nsition c osts

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

$Millions H1F Y20 H1F Y19

Profit a fte r inc ome ta x a ttributa ble to ordina ry e quity holde rs 15.0 14.6

No n-c a sh I nte re st1 0.2 0.7 T ra nsa c tio n c o sts

  • 0.2

F a ir va lue a djustme nt to tra nsa c tio n put lia b ilitie s (1.5) (0.8) CE O tra nsitio n a nd re c ruitme nt c o sts 0.8

  • Adjuste d NPAT

14.5 14.7

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SLIDE 19

19

19

AASB 16 L e a se s

Impa c t of Adoption of AASB 16 ‘L e a se s’

$Millions Sta tutor y R esults H1FY20 I m pa c t of AASB 16 'L ea ses"

Re ve nue 142.1

Se gme nt EBIT DA 46.5 ↑ Increase of $7.4m resulting from reclassification of lease expenses to Depreciation and Interest Expense below EBITDA

E BIT DA 39.5 ↑ Increase of $7.4m from above

De p re c i a ti

  • n a nd a mo rti

sa ti

  • n

(12.6) ↑ Increase of $5.9m resulting from recognition of depreciation of right-of-use assets

E BIT 26.9

Inte re st (5.5) ↑ Increase of $1.7m resulting from recognition of lease liabilities on operating leases

Pr

  • fit be for

e inc ome tax 21.4 ↓ Decrease of $0.2m resulting from differences on the profile of leases

Inc o me ta x e xp e nse (5.9)

Pr

  • fit afte r

inc ome tax 15.5 ↓ Net decrease of $0.2m

Ea rni ngs p e r sha re (c e nts) 18.65 ↓ Net decrease of 0.25 cents Di lute d e a rni ngs p e r sha re (c e nts) 18.48 ↓ Net decrease of 0.25 cents

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SLIDE 20

20

20

K e y Re ve nue a nd E BI T DA Drive rs fo r H1F Y20

1HF Y20 Re ve nue g rowth drive n by:

  • Stro ng T

F C pe rfo rma nc e

  • I

mpro ve me nt in QF G full se rvic e vo lume s

Pa rtia lly offse t by:

  • Re duc tio n in pre mium se rvic e vo lume s in NSW a nd T

a sI VF

  • Re duc tio n in c yc le a c tivity in De nma rk (Aa g a a rd a nd

T ria ng le n)

1HF Y20 E BIT DA inc re a se drive n by:

  • I

mpa c t o f a do pting AASB 16 ‘ L e a se s’ - $7.4m inc re a se a rising fro m a re c la ssific a tio n o f le a se e xpe nse s to de pre c ia tio n a nd inte re st c ha rg e s

  • Re ve nue g ro wth in T

F C a nd QF G full se rvic e vo lume s

Pa rtia lly offse t by:

  • So fte r pre mium se rvic e vo lume s in NSW
  • Dia g no stic s E

BI T DA re duc tio n

  • CE

O tra nsitio n a nd re struc ture c o sts

  • Hig he r infra struc ture a nd I

T se c urity c o sts

132.3 131.4 133.8 140.7 142.1

H1F Y16 H1F Y17 H1F Y18 H1F Y19 H1F Y20

H1F Y16- 20 Re ve nue

36.2 32.8 34.8 32.4 32.1 7.4

H1F Y16 H1F Y17 H1F Y18 H1F Y19 H1F Y20

H1F Y16-20 Gr

  • up E

BIT DA 39.5

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SLIDE 21

21

21

Ca sh Pe rfo rma nc e

Ope ra ting c a sh flo ws inc re a se a s a re sult o f:

  • Re c la ssific a tio n o f $5.7m le a se princ ipa l

pa yme nts to fina nc ing a c tivitie s a s a re sult

  • f a d o pting AASB 16 ‘ L

e a se s’

  • L
  • we r inte re st pa yme nts d ue to lo we r d e b t

le ve ls

  • Po sitive wo rking c a pita l mo ve me nts a s

c o mpa re d to pc p F re e c a sh flo ws a fte r d ivid e nd s a lo ng with e xisting re se rve s wa s use d fo r:

  • De b t re pa yme nt o f $3.0m in No ve mb e r 19;
  • Ac q uisitio n o f SIMs no n-c o ntro lling inte re st o f

$6.6m in No ve mb e r 19; a nd

  • Ac q uisitio n o f $1.9m o f tre a sury sha re s

Summar y H1F Y20 (A$m) H1F Y19 (A$m)

Group E BIT DA 39.5 32.4

Cha ng e s in o the r o pe ra ting a sse ts/ lia b ilitie s* (2.3) (5.9) Ne t fina nc ia l c o sts (3.3) (3.9) L e a se inte re st (1.7)

  • I

nc o me ta x (7.7) (7.9) Othe r (0.9) 0.4

Ope ra ting c a sh flow 23.6 15.1

L e a se princ ipa l pa yme nts (5.7)

  • Ne t CAPE

X (2.8) (9.0)

F re e c a sh flow 15.1 6.1

Divide nds pa id (9.6) (9.6)

F re e c a sh flow a fte r divide nds 5.5 (3.5)

*Excludes non-cash items (fair value adjustments and share-based payments)

Ke y move me nts

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SLIDE 22

22

22

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

Ke y move me nts AASB 16 ‘L e ase s’ adoption – Ke y Impac ts

  • Inc re a se in T
  • ta l a sse ts o f $85.5m fro m re c o g nitio n o f Rig ht-
  • f-use a sse ts
  • Inc re a se in T
  • ta l lia b ilitie s o f $97.9m fro m re c o g nitio n o f

L e a se lia b ilitie s

  • Inc re a se in De fe rre d ta x a sse ts o f $3.5m

Cash balanc e

E xisting c a sh re se rve s use d to e xe rc ise fina l put o ptio n in SIMs Gro up o f $6.6m - re d uc e d o the r fina nc ia l lia b ilitie s

Ge ar ing

  • L

e ve ra g e ra tio o f 2.8 time s a d juste d g ro up E BIT DA (L T M)

  • F

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

  • F

und ing c a pa c ity a va ila b le o f $85m fro m unuse d d e b t fa c ilitie s

Divide nd pr

  • pose d

12 c ps (pc p 12 c ps), fully fra nke d , pa ya b le o n 16th April 2020

$millions Statutor y De c 19 Statutor y June 19

Ca sh 12.6 18.8 T ra de a nd o the r re c e iva b le s 9.4 14.8 I nve nto rie s 1.2 1.3 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 4.7 3.2 PP&E 35.4 38.0 De fe rre d ta x a sse ts 9.7 7.1 Rig ht-o f-use a sse ts 85.5

  • I

nta ng ib le a sse ts 457.3 459.6

T

  • ta l a sse ts

617.3 544.3

T ra de a nd o the r pa ya b le s 23.6 26.5 De fe rre d re ve nue 12.3 16.3 Bo rro wing s 170.9 173.7 De fe rre d ta x lia b ility 0.8 1.1 Pro visio ns 11.3 11.4 L e a se lia b ilitie s 97.9

  • Curre nt ta x lia b ilitie s

0.0 1.1 Othe r fina nc ia l L ia b ilitie s 11.1 19.6

T

  • ta l lia bilitie s

327.9 249.7 Ne t a sse ts 289.4 294.6

slide-23
SLIDE 23

23

23

Summa ry

F Y20/ 21 F

  • c us
  • De fe nd a nd g ro w pre mium se rvic e vo lume
  • Co ntinue to g ro w o ur lo w pric e se rvic e vo lume in Austra lia
  • Gro w dia g no stic re ve nue in Austra lia
  • Gro w no n-I

VF da y ho spita l re ve nue in Austra lia

  • Gro w I

nte rna tio na l re ve nue in e xisting lo c a tio ns

  • Co ntinue d fo c us o n c o st o ut initia tive s
  • Ne w CE

O, Ms K a te Munning s c o mme nc e s 4 Ma y 2020

slide-24
SLIDE 24

24

APPE NDI CE S

slide-25
SLIDE 25

25

25

K PI s – Austra lia n Se g me nt

Vir tus Note H1F Y20 H1F Y19 Change

Numb e r o f I VF c yc le s in Virtus Austra lia 1 8,302 8,085 2.7% 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 22.0% 17.3% 4.7% Numb e r o f I VF c yc le s in NSW, QL D, T AS, VI C, ACT ma rke t 20,773 20,529 1.2% E a ste rn sta te s ma rke t sha re 1 39.9% 39.4% 0.5% Na tio na l ma rke t sha re 1 33.6% 33.5% 1.0% T re a tme nt vo lume 2 15,582 15,368 1.4% Ave ra g e numb e r o f F e rtility Spe c ia lists 102 107 (4.7%) Ave ra g e numb e r o f c yc le s pe r F e rtility Spe c ia list 81 76 6.6% Ave ra g e a g e o f F e rtility Spe c ia lists 53 52 (1.6%) Ave ra g e to ta l re ve nue pe r c yc le (A$) 13,477 13,797 (2.3%) L a b o ur a s a % o f to ta l re ve nue 35.3% 33.9% (1.4%) Pro vide r fe e s a s a % o f to ta l re ve nue 14.6% 14.9% 0.3% Re po rte d se g me nt E BI T DA ma rg in % 3 29.9% 29.8% 0.0%

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 3. E xc lude s $7.4m inc re a se in E BIT DA re sulting fro m the a do ptio n o f AASB 16 ‘ L e a se s’

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SLIDE 26

26

26

Vir tus Inte r national : 21% of Gr

  • up r

e ve nue s

Virtus I nte rna tio na l

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SLIDE 27

27

27

T re a tme nt Ana lysis

55% 35% 10%

T r e atme nt Mix

F re sh c yc le F ro ze n c yc le AI / OI tre a tme nt*

Vir tus Cyc le s *AI/OI Artificial insemination/ ovulation induction treatment

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SLIDE 28

28

28

Re g ula to ry E nviro nme nt

Austra lia

  • Pub lic ly re po rte d c linic spe c ific pre g na nc y ra te s is no w o n the Austra lia n F

e de ra l He a lth a g e nda fo r disc ussio n. Ce ntre Allia nc e se na to r Stirling Griff ta b le d a le g isla tive pro po sa l re q uiring g re a te r sc rutiny o f the I VF industry thro ug h re po rting o f pa tie nt o utc o me s (July 2019)

  • Sta te Go ve rnme nts c o nside ring o ppo rtunitie s to e xte nd e xisting pub lic I

VF se rvic e s e g NSW Go vt a nno unc e d Pre -I VF F e rtility te st $500 re b a te a nd suppo rt o f pub lic ho spita l I VF in Ja nua ry 2020; VI C Go vt via VART A c o mmissio ne d Mic ha e l Go rto n ART Re vie w.

  • 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 – re po rt pub lishe d fo r pub lic c o nsulta tio n with no c ha ng e s to ARS pro po se d to da te

  • Na tio na l He a lth a nd Me dic a l Re se a rc h Co unc il (NHMRC) re po rt pub lishe d June 2017; no re c o mme nda tio ns e na c te d to da te
  • Co mmitte e (MSAC) re vie w o f PGD funding o ng o ing ; a nd
  • Cha ng e s imple me nte d b y Na tio na l Pa tho lo g y Ac c re dita tio n Adviso ry Co unc il (NPAAC) ha ve pla c e d a n a dditio na l c o st impo st o n

b usine sse s in re la tio n to pa tho lo g ist supe rviso ry re q uire me nts.

Ire la nd

  • Pro po se d c ha ng e s to do no r le g isla tio n, re mo ving a no nymity fo r do no rs a nd the po te ntia l fo r pub lic funding o f I

VF a re still to pla y o ut a nd the re is no time fra me a rtic ula te d o n the se ma tte rs; a nd

  • Ne w de dic a te d F

e rtility Re g ula to r e xpe c te d to b e intro duc e d in 2020.

UK

  • A pro po se d Na tio na l I

VF ta riff - A “Guide line s fo r Co mmissio ning F e rtility Se rvic e s” pa pe r ha s b e e n re le a se d b y the HF E A to c linic a l c o mmissio ning g ro ups. T his inc lude s a pro po se d ta riff fo r I VF

  • the re is no info rma tio n o n whe n this mig ht b e intro duc e d a nd it is like ly to

b e c o nte ste d b y c linic s.

Sing a pore

  • Go ve rnme nt-a ppro ve d Pre -impla nta tio n g e ne tic sc re e ning ‘ c linic a l tria l’ in pub lic ho spita l c o uld po int to e xpa nding se rvic e o ffe ring

De nma rk

  • No re g ula to ry upda te s a t the c urre nt time
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SLIDE 29

29

29

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 36 Ire la nd 3 Sing a po re 1 De nma rk 2 UK 1

F E RT IL IT Y CL INICS

43

E mb ryo lo g y 27 Andro lo g y 29 Ge ne ra l Pa tho lo g y 5 Ge ne tic s 2 L ABORAT ORIE S

63

F E RT IL IT Y SPE CIAL IST S

1,005 125 247

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

SCIE NT IST S

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

DAY HOSPIT AL S

7

H

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

DAY HOSPIT AL S

7

H

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SLIDE 30

30

T HANK YOU