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VIRT US HE AL T H (ASX: VRT ) F INANCIAL RE SUL T S PRE SE NT AT ION F Y2017 ue sda y 22 nd Aug ust, 2017 AE T ST DISCL AIME 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 a lth L imite d


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SLIDE 1

VIRT US HE AL T H (ASX: VRT )

F INANCIAL RE SUL T S PRE SE NT AT ION F Y2017

T ue sda y 22nd Aug ust, 2017 AE ST

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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.

DISCL AIME R

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3

RE SUL T S & OPE RAT IONAL OVE RVIE W F Y2017

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4

Re ve nue down 1.8% to $256.5m

  • Gro up c yc le s fla t a t18,669 (F

Y16: 18,752)

  • Gro up tre a tme nts inc lud ing IVF

, F E T , IUI a nd c a nc e lle d we re up 3.6% to 35,360 o n pc p

  • Virtus Austra lia n c yc le s d o wn 3.7% like fo r like in the a va ila b le d o me stic ma rke t whic h is

d o wn 0.24%

Gr

  • up E

BIT DA be for e impa ir me nt down 5.9% to $64.8m

  • Austra lia n se g me nt E

BIT DA d o wn 7.6% to $65.8m

  • Inte rna tio na l se g me nt E

BI T DA up 24.4% to $7.1m

Ne t Pr

  • fit a fte r

ta x (NPAT ) a ttr ibuta ble to or dina r y e quity holde r s down 14.6% to $28.1m Ge a r ing a t 2.1X a djuste d Gr

  • up E

BIT DA Ca sh/ De bt F unding c a pa c ity ~$60m ($51m unuse d b o rro wing fa c ility a nd ~$9m unc o mmitte d

c a sh)

F ina l divide nd 12c ps fully fr a nke d (F Y16:15c ps)

F Y17 F INANCIAL RE SUL T S OVE RVIE W

Challe nging do me stic ARS c o nditio ns; gr

  • wth in diagno stic s &

inte r natio nal ac tivitie s

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5

  • Gro up E

BI T DA suppre sse d b y Austra lia n ma rke t pe rfo rma nc e

  • Me lb o urne I

VF E BI T DA de c line

  • Da y Ho spita l re ve nue sho rtfa ll
  • T

he F e rtility Ce ntre “T F C” ma rg in re duc tio n;

  • Pa rtia lly o ffse t b y stro ng pro fit g ro wth fro m Dia g no stic s
  • Gro up Se g me nt E

BI T DA g re w in H2 F Y17 o n pc p a s a re sult o f:

  • T

F C vo lume g ro wth

  • Po sitive E

BI T DA Sing a po re

  • F

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

  • Virtus re ma ins the ma rke t le a de r in Austra lia n ARS ma rke t tha t c o ntinue s to se e

c o mpo sitio n c ha ng e

  • Ove rse a s b usine ss b ro a dly in line with e xpe c ta tio ns
  • Co nsiste nt e xe c utio n o f stra te g y with 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

OPE RAT IONAL HIGHL IGHT S

Vir tus we ll po sitio ne d to c ar e fo r all patie nts in c ho se n mar ke ts

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6

AUST RAL IAN SE GME NT PE RF ORMANCE

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7

Vir tus Austr alia: Ac hie ve me nts

Austr alian F e r tility Busine ss

Vic tor ia

  • Org a nisa tio na l re -struc ture c o mple te d with ne w le a de rship te a m in pla c e
  • Co ntinue d fo c us o n e ffic ie nc y a nd pro c e ss re -e ng ine e ring to ma na g e g ro wth a nd c o sts
  • Stre ng the ne d sc ie ntific le a de rship - Pro f Da vid Ga rdne r IVF

pio ne e r

Cha ng e s for e c a st to de live r a nnua lise d OPE X r e duc tion of $3.5m in F Y18

T F C (Se r vic e Mode ls)

  • Co ntinuo usly impro ving c linic a l a nd se rvic e de live ry mo de ls to re spo nd to lo w c o st ma rke t;
  • Pric ing & pa c ka g ing de ve lo pme nt de live rs vo lume impro ve me nt in H2 o n pc p

Ope r ating E xpe nse s

  • E

ffe c tive c o st ma na g e me nt (Dia g no stic & Ma rke ting re struc ture )

  • K

e y supplie r & c o nsulting c o sts re duc e d

Cha ng e s for e c a st to de live r a nnua lise d OPE X r e duc tion of $1.5m in F Y18 (in a ddition to Vic tor ia )

Diagnostic s

  • Ve rtic a l inte g ra tio n o ptimise d with c e ntra lise d la b a c c re dita tio n a nd o ve rsig ht
  • Additio na l c o lle c tio n c e ntre s
  • Stro ng pro fit g ro wth fro m dia g no stic s; pa rtic ula rly g e ne tic sc re e ning

Vir tus is we ll plac e d to r e spo nd to industr y c halle nge s and var iability

$5m o f fo r e c ast annualise d savings fo r F Y18

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SLIDE 8

8

  • Ove ra ll ma rke t vo lume a lo ng e a ste rn se a b o a rd do wn 0.24% o n pc p
  • Virtus c yc le a c tivity in F

Y17 do wn 3.7% to 15,776 c yc le s o n a like fo r like b a sis

  • Virtus full se rvic e a c tivity de c line d 3.1%
  • Gro wth a c hie ve d in T

AS & QL D

  • Virtus NSW o utpe rfo rme d de c lining NSW ma rke t
  • Busine ss & c linic a l stra te g y a rre ste d VI

C de c line ; ma rke t sha re sta b le in la st q ua rte r

  • T

F C c linic s inc re a se d 3.9% o n a like fo r like b a sis

  • Se rvic e mo de l a nd pric ing re vie w re sulte d in 24% c yc le g ro wth in H2F

Y17

  • H2 F

Y17 E BI T DA va ria nc e de c line d c o mpa re d to pc p

  • T

F Cs re pre se nt ~15% o f o ve ra ll Virtus Austra lia n a c tivity

  • Re ve nue do wn 1.1% to $217.1m (F

Y16: $219.5m)

  • Austra lia n se g me nt E

BI T DA do wn 7.6% to $65.8m (F Y16: $71.2m)

AUST RAL IAN OPE RAT IONS - F E RT IL IT Y

Vir tus is the mar ke t le ade r in Austr alia

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9

VARIABIL IT Y IN AUST RAL IAN MARKE T GROWT H

Annual gr

  • wth r

ate var iability is no r mal and histo r ic al ac tivity has impr

  • ve d fo llo wing pe r

io ds o f mar ke t do wntur n

  • 5 ye a r ma rke t CAGR to June 2017 is 2.2%
  • F

Y17 re fle c ts a ma rke t c o ntra c tio n o f 1.2% o ve r pc p to 43,948 c yc le s. H2 vo lume s impro ve d

  • ve r H1 with a n inc re a se in so me sta te s (H1 c o ntra c tio n wa s 6.4%)

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

  • 8%
  • 6%
  • 4%
  • 2%

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

2010 2011 2012 2013 2014 2015 2016 2017

Annua l Industr y Gr

  • wth r

a te s (F Y10-17)

Annua l Gro wth Ra te s

39,457 39,688 41,154 41,557 44,468 43,948 36,000 37,000 38,000 39,000 40,000 41,000 42,000 43,000 44,000 45,000

F Y12 F Y13 F Y14 F Y15 F Y16 F Y17

Ma r ke t Volume s (F Y12-17)

Numb e r o f I VF Cyc le s

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SLIDE 10

10

  • Dia g no stic re ve nue inc re a se d 8.7%
  • Sig nific a nt o pe ra tio na l e nha nc e me nts c o mple te d

in F Y17 le a ding to E BI T DA g ro wth o f 37%

  • Re ve nue up 37% in PGD/ PGS a c tivity - utilisa tio n a t

14% o f fre sh c yc le s (H1F Y17: 12.3%)

  • Co ntinue d g ro wth e xpe c te d;
  • Ge ne tic sc re e ning
  • An e xpa nde d te sting pla tfo rm inc luding

se ro lo g y a nd e a rly o b ste tric pa tho lo g y te sting

  • E

xpa nde d c o lle c tio n c e ntre fo o tprint

  • Pla n to e xte nd se rvic e s into T

a sma nia & ACT

Str

  • ng r

e ve nue and E BIT DA gr

  • wth

AUST RAL IAN OPE RAT IONS - DIAGNOST ICS

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SLIDE 11

11

Day Ho spital r e ve nue de c r e ase d 7.2%

  • Impa c te d b y so fte r IVF

a c tivity

  • De c re a se in No n-IVF

pro c e dure re ve nue o f 9.2% 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-IVF

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

AUST RAL IAN OPE RAT IONS - DAY HOSPIT AL

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SLIDE 12

12

INT E RNAT IONAL SE GME NT PE RF ORMANCE

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SLIDE 13

13

Vir tus Inte r national: Ac hie ve me nts

IRE L AND Pe rfo rming in line with stra te g ic o b je c tive s SINGAPORE I nc re a sing ma rke t re puta tio n a nd impro ve d fina nc ia l pe rfo rma nc e

DE NMARK

Suc c e ssful inte g ra tio n with Virtus a nd c o ntinue d e xpa nsio n

Disc ipline d inte r natio nal e xpansio n str ate gy

Inte r natio nal E xpansio n: E ur

  • pe , UK & Sc andinavian o ppo r

tunitie s be ing pur sue d

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SLIDE 14

14

IRISH OPE RAT IONS

Busine ss pe r fo r ms in line with str ate gic o bje c tive s

  • Sims IVF

Gro up re ma ins ma rke t le a de r

  • 2,294 c yc le s pe rfo rme d in F

Y17 (F Y16: 2,321) c o nsiste nt re sult c o nside ring six we e k c lo sure fo r Ro tunda IVF upg ra de & Co rk do c to r c ha ng e s

  • Re ve nue do wn 1.4% to €21.8m (lo c a l c urre nc y)
  • E

BIT DA (lo c a l c urre nc y) in line with pc p

  • Ne w Me dic a l Dire c to r a nd Ma na g ing Dire c to r

a ppo intme nts

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SLIDE 15

15

  • 341 c yc le s pe rfo rme d in Sing a po re in F

Y17 (F Y16: 301)

  • H2 F

Y17 E BIT DA po sitive

  • F

ull ye a r E BI T DA lo ss impro ve s to S$120,000 c o mpa re d to pc p lo ss o f S$637,000 (lo c a l c urre nc y)

  • Ma rke t re puta tio n c o ntinue s to b uild
  • F
  • ur 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

SINGAPORE OPE RAT IONS

Singapo r e de live r s inc r e ase d c yc le s and impr

  • ve d E

BIT DA

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SLIDE 16

16

  • Suc c e ssful inte g ra tio n with Virtus de mo nstra ting va lue o f

c o lla b o ra tive me dic a l & sc ie ntific mo de l

  • E

PS a c c re tive o n a full ye a r 2017 b a sis c o ntrib uting K r4.4m to Gro up E BIT DA (7 mo nths)

  • Additio na l do c to r a ppo inte d 1 July to suppo rt g ro wth
  • L

e a ding Da nish fe rtility c linic o utside Co pe nha g e n with hig he st na tio na l re po rte d suc c e ss ra te s *

  • T

his a c q uisitio n o pe ns furthe r Sc a ndina via n o ppo rtunitie s

DANISH OPE RAT IONS

Vir tus ne we st me mbe r Aagaar d F e r tility Clinic De nmar k de live r s

* Da nish F e rtility So c ie ty: ART a rsra ppo rt 2015

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SLIDE 17

17

F INANCIAL RE SUL T S F Y2017

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18

SUMMARY INCOME ST AT E ME NT

Statuto r y and adjuste d r e sults

Statutor y Re sults Adjustme nt Adjuste d Re sults A $ millions F Y17 F Y16 F Y17 F Y16 F Y17 F Y16

Re ve nue 256.5 261.2 256.5 261.2

Se g me nt E BI T DA 72.9 76.9 72.9 76.9

E BIT DA (be fore impa irme nt) 64.8 68.9 (3.0) (1.3) 61.8 67.6

De pre c ia tio n, a mo rtisa tio n a nd impa irme nt (14.0) (11.2) 1.9 (12.1) (11.2) E BI T 50.8 57.7 (1.1) (1.3) 49.7 56.4 I nte re st (8.0) (8.7) 1.2 1.1 (6.8) (7.6)

Profit be fore inc ome ta x 42.8 49.0 0.1 (0.2) 42.9 48.8

I nc o me ta x e xpe nse (12.8) (14.2) (0.1) (12.9) (14.2)

Profit a fte r inc ome ta x 30.0 34.8 0.0 (0.2) 30.0 34.6

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 (1.9) (1.9) (1.9) (1.9)

Profit a fte r inc ome ta x a ttributa ble to ordina ry e quity holde rs 28.1 32.9 0.0 0.2 28.1 32.7

E a rning s pe r sha re (c e nts) 35.00 41.18 Dilute d E a rning s pe r sha re (c e nts) 34.79 40.79

No te s: Sha de d a re a indic a te s IF RS disc lo sure s F Y17 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.

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SLIDE 19

19

ST AT UT ORY PROF IT RE CONCIL IAT ION T O ADJUST E D PROF IT

$ Million F Y17 F Y16

Profit a fte r inc ome ta x a ttributa ble to ordina ry e quity holde rs 28.1 32.9

F a ir Va lue Adjustme nt to put lia b ilitie s1 (3.3) (2.2) F a ir Va lue Adjustme nt to c o nting e nt c o nside ra tio n (0.5) 0.0 No n Ca sh I nte re st2 1.2 1.1 T ra nsa c tio n c o sts 0.8 0.9 I mpa irme nt o f Go o dwill3 1.9 0.0 T a x-e ffe c t o n a ll a djustme nts (0.1) 0.0

Adjuste d NPAT 28.1 32.7

Ove r all tr ansac tio n r e late d no n-c ash adjustme nts, tr ansac tio n e xpe nse s and Impair me nt ne t o ut to NIL in F Y17

No te s: 1. F a ir va lue a djustme nt to put lia b ilitie s re la ting to re ma ining inte re sts in a c q uire d e ntitle s 2. 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 o ptio n a nd c o nting e nt c o nside ra tio n lia b ilitie s 3. Impa irme nt o f g o o dwill in re la tio n to T a sma nia

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SLIDE 20

20

186.6 201.2 234.1 261.2 256.5

F Y13 F Y14 F Y15 F Y16 F Y17

F Y13-17 Re ve nue

KE Y RE VE NUE AND E BIT DA DRIVE RS F OR F Y2017

F Y17 Re ve nue impa c te d by:

  • Austra lia n g e ne ra l ma rke t c o ntra c tio n
  • Vic to ria n ma rke t sha re lo ss
  • T

F C pric e re duc tio n

  • Da y Ho spita l re ve nue de c line

Pa rtia lly offse t by:

  • I

mpro ve me nt in Virtus full se rvic e a c tivity in Vic to ria H2F Y17

  • Mix c ha ng e – impro ve d T

F C vo lume

  • Dia g no stic s re ve nue g ro wth

43.4 59.4 61.4 68.9 64.8

F Y13 F Y14 F Y15 F Y16 F Y17

F Y13-17 Gr

  • up E

BIT DA

F Y17 E BIT DA impa c te d by:

  • L
  • we r Austra lia n full se rvic e vo lume s
  • Vic to ria n E

BI T DA do wn b y $3.8m o n pc p

  • T

F C ma rg in de te rio ra tio n

  • Re struc ture c o sts $0.8m

Pa rtia lly offse t by:

  • Dia g no stic s E

BI T DA g ro wth

  • Sing a po re E

BI T DA lo ss re duc tio n

  • Pa rt ye a r c o ntrib utio n o f ne wly a c q uire d c linic in De nma rk
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SLIDE 21

21

ST AT E ME NT OF F INANCIAL POSIT ION

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

  • n Ca pe x a nd divide nds

Ge ar ing

  • I

nc re a se in b o rro wing s a rising fro m a dditio na l dra wdo wn o f $11m to fund a c q uisitio n o ffse t b y vo lunta ry re pa yme nt

  • f $5m
  • L

e ve ra g e ra tio o f 2.1 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 , ~$60m re fle c ting $51m o f unuse d fa c ilitie s a nd ~$9m o f unc o mmitte d c a sh

Divide nd pr

  • pose d

12c ps, (pc p15c ps) fully fra nke d pa ya b le o n 13 Oc to b e r 2017

A $ millions Statutor y June 17 Statutor y June 16

Ca sh 27.3 22.2 T ra de a nd o the r re c e iva b le s 12.3 11.3 I nve nto rie s 0.7 0.6 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 3.0 2.3 PP&E 29.0 30.3 De fe rre d ta x a sse ts 4.0 6.0 I nta ng ib le a sse ts 411.5 399.0

T

  • ta l Asse ts

489.3 473.2

T ra de a nd o the r pa ya b le s 22.1 25.1 De fe rre d re ve nue 8.2 5.8 Bo rro wing s 153.6 147.4 Pro visio ns 9.8 9.6 Curre nt ta x lia b ilitie s 0.4 0.0 Othe r fina nc ia l L ia b ilitie s 26.8 27.2

T

  • ta l L

ia bilitie s 220.9 215.1 Ne t Asse ts 268.4 258.0

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SLIDE 22

22

CASH PE RF ORMANCE

Ope r ating c ash flo w impac te d by lo we r F Y17 E BIT DA

Ope r ating c ash flows use d to fund:

  • Ca pe x o f $9.8m
  • Divide nds o f $22.5m

Ope ra ting c a sh flo ws a ffe c te d b y lo we r E BI T DA a nd lo we r pa ya b le s in F Y17 Ne t de b t inc re a se d b y $2.0m a s a re sult

  • f a dditio na l dra wdo wn o f $11m to fund

the a c q uisitio n o f Aa g a a rd F e rtility Clinic in De nma rk, mo stly o ffse t b y a n inc re a se in c lo sing c a sh b a la nc e o f $4.0m a nd a vo lunta ry de b t re pa yme nt o f $5.0m.

Summar y (A$m) F Y17 (A$m) F Y16 (A$m)

Group E BIT DA 64.8 68.9

Cha ng e s in o the r o pe ra ting a sse ts / lia b ilitie s (5.6) 1.5 Ne t fina nc ia l c o sts (6.4) (6.9) I nc o me T a x (10.7) (16.2) Othe r no n-c a sh a djustme nts* (3.4) 0.4

Ope ra ting Ca sh F low 38.7 47.7

Ne t CAPE X (9.8) (9.6)

F re e Ca shflow 28.9 38.1

Divide nds pa id (22.5) (22.1)

F re e Ca sh F low a fte r divide nds 6.4 16.0

* Increase resulting from non cash fair value gains

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SLIDE 23

23

ST RAT E GY

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SLIDE 24

24

Pur po se : T

  • he lp wo me n and me n ac hie ve the ir

aspir atio ns to c r e ate a family

VIRT US HE AL T H ST RAT E GY

Ambition

T

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

  • Our pa tie nts b e ing a t the

c e ntre o f e ve rything we d o

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

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 ve ra g e fe rtility, g e ne tic s & g e ne ra l pa tho lo g y te sting a c ro ss the b usine ss Othe r d ive rsific a tio n

  • ppo rtunitie s

L e ading minds, le ading sc ie nc e

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SLIDE 25

25

ARS is a lo ng-te r m gr

  • wth mar

ke t

  • 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 impro ve do me stic po sitio n
  • Inte rna tio na l o pe ra tio ns c o ntinue to pe rfo rm in line with e xpe c ta tio n
  • Stro ng pro fit g ro wth fro m dia g no stic s pa rtic ula rly g e ne tic sc re e ning
  • E

a rly a do ptio n o f te c hno lo g y, a dva nc e s in sc ie nc e a nd o pe ra tio ns fo r pa tie nt, do c to r a nd e mplo ye e va lue

  • 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

Vir tus is we ll po sitio ne d to gr

  • w

SUMMARY

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SLIDE 26

26

APPE NDICE S

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SLIDE 27

27

Ave r age sale s r e ve nue r e fle c ts mix c hange fr

  • m full se r

vic e to T F C

KPIS – AUST RAL IAN SE GME NT

Vir tus Note F Y17 F Y16 Change

Numb e r o f I VF Cyc le s in Virtus Austra lia 1 15,776 16,130 (2.2%) 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 15.0% 13.0% 2.0% Numb e r o f I VF Cyc le s in NSW, QL D, T AS, VI C, ACT ma rke t 1 37,497 37,587 (0.2%) E a st sta te s ma rke t sha re 1 42.1% 43.9% (1.8%) Na tio na l ma rke t sha re 1 35.9% 36.2% (0.3%) T re a tme nt vo lume 2 30,148 29,917 1.7% Ave ra g e numb e r o f F e rtility Spe c ia lists 106 100 6.0% Ave ra g e numb e r o f c yc le s pe r F e rtility Spe c ia list 149 161 (7.5%) Ave ra g e a g e o f F e rtility Spe c ia lists 51 50 2.0% Ave ra g e to ta l re ve nue pe r c yc le (A$) 13,758 13,784 (0.2%) L a b o ur a s a % o f to ta l re ve nue 32.8% 30.0% (2.8%) Pro vide r fe e s a s a % o f to ta l re ve nue 15.1% 15.1% 0.0% Re po rte d se g me nt E BI T DA ma rg in % 30.0% 32.1% (2.1%)

No te s: 1. Implie d la st 12mo 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

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SLIDE 28

28

Vir tus r e mains the mar ke t le ade r in Austr alia

  • Gro wing ARS Austra lia n ma rke t sinc e 2006 with so me c o ntra c tio n in vo lume fo r F

Y17

  • De mo g ra phic drive rs fo r ARS re ma in fa vo ra b le a s e vide nt in the histo ric a l tre nd line
  • Stro ng industry funda me nta ls with o c c a sio na l va ria b ility

26,167 29,034 32,363 35,921 38,472 36,301 39,457 39,688 41,154 41,557 44,468 43,948

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Austr a lia n Ma r ke t Volume s (2006-2017)

Ma rke t Ma rke t 12-T re nd

AUST RAL IAN MARKE T GROWT H

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SLIDE 29

29

VIRT US T RE AT ME NT ANAL YSIS

53% 33% 14%

T r e atme nt Mix

Cyc le F ro ze n AI / OI

Vir tus Cyc le s

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SLIDE 30

30

DIVE RSIF IE D RE VE NUE MIX

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SLIDE 31

31

VIRT 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 la nd 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 29 And ro lo g y 27 E nd o c rino lo g y 4 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

951 122 231

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

SCIE NT IST S

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SLIDE 32

32

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 is in pro g re ss

  • Na tio na l He a lth a nd Me dic a l Re se a rc h Co unc il

(“NHMRC”) ha s pro vide d ne w g uida nc e o n se x se le c tio n fo r fa mily b a la nc ing (no t c urre ntly pe rmitte d) a nd do no r se rvic e s

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

  • Gro wing inte re st in 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 GUL AT ORY E NVIRONME NT

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SLIDE 33

T HANK YOU