F INANCIAL RE SUL T S PRE SE NT AT ION H1F Y2017 ue sda y - - PowerPoint PPT Presentation

VIRT US HE AL T H (ASX: VRT )

F INANCIAL RE SUL T S PRE SE NT AT ION H1F Y2017

T ue sda y 21st F e b rua ry, 2017 AE DT

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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RE SUL T S & OPE RAT IONAL OVE RVIE W H1F Y2017

4

Re ve nue down by 0.7% to $131.4m

• Gro up c yc le s do wn 3.8% to 9,410 (H1F

Y16: 9,782)

• Austra lia n Virtus c yc le s do wn 7.2% pc p in a do me stic ma rke t do wn 6% H1F

Y17

Gr

• up E

BIT DA down 12.3% to $31.7m

• Austra lia n se g me nt E

BI T DA do wn 13.1% to $33.9m

• I

nte rna tio na l se g me nt E BI T DA up 11.7% o n pc p

Ne t Pr

• fit afte r

tax (NPAT ) down 17.6% to $14.7m Cash/ De bt

• F

unding c a pa c ity $57m ($47m unuse d b o rro wing fa c ility a nd $10m unc o mmitte d c a sh)

Ge ar ing at 2.3X adjuste d Gr

• up E

BIT DA Inte r im divide nd 13c ps fully fr anke d (H1F Y16: 14c ps)

Challe nging H1F Y17 do me stic c o nditio ns have dr ive n a de c line in r e ve nue & e ar nings

H1F Y17 F INANCIAL RE SUL T S OVE RVIE W

5

AUST RAL IAN SE GME NT PE RF ORMANCE

6

• Ge ne ra l ma rke t a c tivity in e a ste rn se a b o a rd sta te s whe re Virtus
• pe ra te s do wn 6.0% c o mpa re d to pc p
• Virtus c yc le a c tivity in H1F

Y17 do wn 7.2% to 8,070 c yc le s o n a like fo r like b a sis

• De c line in Virtus full se rvic e a c tivity in Vic to ria
• NSW T

F C vo lume 19% b e lo w pc p; T F Cs re pre se nt ~12% o f o ve ra ll Virtus NSW a c tivity

• T

F C re pre se nts 12.4% o f Virtus a c tivity

• Virtus NSW a nd QL

D o utpe rfo rme d sta te ma rke ts

• Austra lia n se g me nt E

BI T DA do wn 13.1% to $33.9m (H1F Y16 $39.0m)

• Re ve nue do wn 2% to $111.1m (H1F

Y16 $112.8m)

• Busine ss a nd c linic a l stra te g y to a ddre ss Vic to ria n sha re lo ss; T

F C mo de l unde r re vie w

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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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 ally ac tivity has impr

• ve d fo llo wing pe r

io ds o f mar ke t do wntur n

• 8%
• 6%
• 4%
• 2%

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

2010 2011 2012 2013 2014 2015 2016

Annua l Industr y Gr

• wth r

a te s (F Y10-16)

Annua l Gro wth Ra te s

• 7 ye a r ma rke t CAGR to June 2016 is 3.1%
• H1 F

Y17 re fle c ts the ma rke t c o ntra c tio n o f 6.4% o ve r pc p to 21,890 c yc le s

20,345 20,758 21,719 21,432 23,383 21,890 18,500 19,000 19,500 20,000 20,500 21,000 21,500 22,000 22,500 23,000 23,500 24,000

H1 F Y12 H1 F Y13 H1 F Y14 H1 F Y15 H1 F Y16 H1 F Y17

H1 Ma r ke t Volume s (F Y12-17)

Numb e r o f I VF Cyc le s

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

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AUST RAL IAN MARKE T GROWT H

Austr alian mar ke t vo lume s

• Gro wing Austra lia n ARS ma rke t sinc e 2005
• De mo g ra phic drive rs fo r ARS re ma in fa vo ra b le
• Stro ng industry funda me nta ls with pe rio dic va ria b ility

23,976 26,167 29,034 32,363 35,921 38,472 36,301 39,457 39,688 41,154 41,557 44,468

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Austr a lia n Ma r ke t Cyc le s (2006-2016)

Ma rke t 12-T re nd Ma rke t

So urc e : Me d ic a re Austra lia

9

• Re ve nue up 37.9% in

PGD/ PGS a c tivity - utilisa tio n a t 12.3% o f fre sh c yc le s (pc p 7.9%)

• E

ndo c rino lo g y a nd c yto g e ne tic te sting de c line d a s a re sult o f we a k I VF c yc le a c tivity

Day Ho spital r e ve nue de c r e ase d 10.5% H1F Y17 Diagno stic r e ve nue inc r e ase d 7.1% H1F Y17

• Re ve nue de c re a se a

c o nse q ue nc e o f we a k I VF a c tivity

• No n-I

VF pro c e dure re ve nue de c re a se d 14.4% a c ro ss a ll da y ho spita ls

AUST RAL IAN OPE RAT IONS DIAGNOST ICS & DAY HOSPIT AL

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INT E RNAT IONAL SE GME NT PE RF ORMANCE

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IRISH OPE RAT IONS

Mar ke t le ade r c o ntinue s to de live r c yc le and e ar nings gr

• wth
• 1,170 c yc le s pe rfo rme d in H1F

Y17 (H1F Y16: 1,148) stro ng re sult c o nside ring six we e k c lo sure fo r Ro tunda I VF upg ra de s

• Re ve nue up 4.3% o n pc p (lo c a l c urre nc y)
• E

BI T DA up 3.5% o n pc p (lo c a l c urre nc y)

• 7.6% c o ntrib utio n to g ro up se g me nt E

BI T DA up fro m 7.0% H1F Y16 in-line with stra te g ic o b je c tive s

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SNG

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

Y17 (H1F Y16: 124)

• H1F

Y17 E BI T DA lo ss impro ve s to $185,000 c o mpa re d to pc p lo ss o f $572,000 (lo c a l c urre nc y)

• Ma rke t re puta tio n c o ntinue s to b uild a s fo ur c o ntra c te d

do c to rs plus fo ur a sso c ia te d spe c ia lists utilise fa c ility

SINGAPORE OPE RAT IONS

Singapo r e c yc le s inc r e asing – E BIT DA pe r fo r manc e impr

• ve s

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SNG

• So phistic a te d, we ll re g ula te d Da nish I

VF ma rke t ha s e xc e lle nt sc ie ntific c a pa b ility

• Aa g a a rd is the le 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 *

• I

nte g ra tio n o f Aa g a a rd with Virtus unde rwa y

• F
• re c a st to b e E

PS a c c re tive o n a full ye a r 2017 b a sis

• De nma rk 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 ac quir e s Aagaar d F e r tility Clinic , No ve mbe r 2016

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

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F INANCIAL RE SUL T S H1F Y2017

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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 H1F Y17 H1F Y16 H1F Y17 H1F Y16 H1F Y17 H1F Y16

Re ve nue 131.4 132.3 131.4 132.3

Se g me nt E BI T DA 36.5 41.4 36.5 41.4

E BIT DA 31.7 36.2 (0.3) 0.3 31.5 36.5

De pre c ia tio n a nd a mo rtisa tio n (6.0) (5.6) (6.0) (5.6) E BI T 25.7 30.6 (0.3) 0.3 25.4 30.8 I nte re st (3.9) (4.3) 0.5 0.6 (3.4) (3.9)

Profit be fore inc ome ta x 21.8 26.2 0.2 0.9 22.0 27.1

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

Profit a fte r inc ome ta x 15.6 18.8 0.1 0.9 15.7 19.6

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 (0.9) (0.9) (0.9) (0.9) Pro fit a fte r inc o me ta x a ttrib uta b le to o rdina ry e q uity ho lde rs 14.7 17.9 0.1 0.9 14.8 18.7 E a rning s pe r sha re (c e nts) 18.35 22.35 Dilute d E a rning s pe r sha re (c e nts) 18.21 22.13

No te s: Sha de d a re a indic a te s IF RS disc lo sure s H1F 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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ST AT UT ORY PROF IT RE CONCIL IAT ION T O ADJUST E D PROF IT

$ Million H1F Y17 H1F Y16

Profit a fte r inc ome ta x a ttributa ble to ordina ry e quity holde rs 14.7 17.9

F a ir Va lue Adjustme nt to put lia b ilitie s1 (0.5) 0.0 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 0.5 0.6 T ra nsa c tio n c o sts 0.8 0.3 T a x-e ffe c t o n a ll a djustme nts (0.1) 0.0

Adjuste d NPAT 14.8 18.7

Ne t lo ss fr

• m tr

ansac tio n r e late d no n-c ash adjustme nts and tr ansac tio n e xpe nse s - $0.1m

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 lia b ilitie s

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93.9 101.2 114.5 132.3 131.4

1H13 1H14 1H15 1H16 1H17

H1 F Y13-17 Re ve nue

KE Y RE VE NUE AND E BIT DA DRIVE RS F OR H1F Y2017

1H 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 vo lume re duc tio n

• Da y Ho spita l re ve nue de c line

Pa rtia lly offse t by:

• Mix c ha ng e – re duc e d T

F C vo lume mix

• Pric e inc re a se
• I

nte rna tio na l re ve nue g ro wth

• Dia g no stic s re ve nue g ro wth

30.3 32.0 32.8 36.2 31.7

1H13 1H14 1H15 1H16 1H17

H1 F Y13-17 Gr

• up E

BIT DA

1H F Y17 E BIT DA impa c te d by:

• L
• we r Austra lia n vo lume s
• F

a ll in Da y Ho spita l re ve nue

• Ma rg in de te rio ra tio n in Vic to ria a nd T

F Cs

• I

nc re a se in unde rlying o pe ra ting c o sts

Pa rtia lly offse t by:

• I

re la nd E BI T DA g ro wth

• Sing a po re E

BI T DA lo ss re duc tio n

• I

mpro ve d Dia g no stic s pe rfo rma nc e

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CASH PE RF ORMANCE

Ope r ating c ash flo w impac te d by lo we r H1 E BIT DA

Ope r ating c ash flows use d to fund:

• Ca pe x o f $4.6m
• Divide nds o f $12.1m

Ne t de b t inc re a se d b y $9.3m 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, pa rtly 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 $1.8m

Summar y (A$m) H1F Y17 (A$m) H1F Y16 (A$m)

Group E BIT DA 31.7 36.2

Cha ng e s in wo rking c a pita l (3.7) (5.6) Cha ng e s in o the r o pe ra ting a sse ts / lia b ilitie s (4.3) 2.6 Ne t fina nc ia l c o sts (3.3) (3.7) I nc o me T a x (4.9) (9.6) Othe r 0.6 0.4

Ope ra ting Ca sh F low 16.1 20.3

Ne t CAPE X (4.6) (4.8)

F re e Ca shflow 11.5 15.5

Divide nds pa id (12.1) (11.1)

F re e Ca sh F low a fte r divide nds (0.6) 4.4

19

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

• L

e ve ra g e ra tio o f 2.3 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 , $57m re fle c ting $47m o f unuse d fa c ilitie s a nd $10m o f unc o mmitte d c a sh

Divide nd pr

• pose d

13 c ps, (pc p14 c ps) fully fra nke d pa ya b le o n 18 April 2017

A $ millions Statutor y De c 16 Statutor y June 16

Ca sh 24.0 22.2 T ra de a nd o the r re c e iva b le s 11.6 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 3.4 2.3 PP&E 29.5 30.3 De fe rre d ta x a sse ts 5.2 6.0 I nta ng ib le a sse ts 413.6 399.0

T

• ta l Asse ts

489.5 473.2

T ra de a nd o the r pa ya b le s 21.4 25.1 De fe rre d re ve nue 5.8 5.8 Bo rro wing s 158.5 147.4 Pro visio ns 9.4 9.6 Curre nt ta x lia b ilitie s 0.5 0.0 Othe r fina nc ia l L ia b ilitie s 30.0 27.2

T

• ta l L

ia bilitie s 225.6 215.1 Ne t Asse ts 263.9 258.0

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ST RAT E GY & OUT L OOK

21

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

22

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

NE AR T E RM PRIORIT IE S

Inte r national

• Ac tive ly pursue furthe r o ppo rtunitie s in E

uro pe

• L

e ve ra g e pre se nc e in De nma rk fo r Sc a ndina via n o ppo rtunitie s

Austr alian F e r tility Busine ss

Vic tor ia

• Ma na g e me nt a nd struc tura l c ha ng e s
• Stre ng the ne d sc ie ntific le a de rship - a ppo intme nt o f inte rna tio na lly re no wne d I

VF pio ne e r to e nha nc e sc ie ntific e xc e lle nc e

T F C (Se r vic e Mode ls)

• Re vie w o f c linic a l a nd se rvic e de live ry mo de ls
• Pric ing & pa c ka g ing de ve lo pme nt

Ope r ating E xpe nse s

• T

a rg e te d c o st ma na g e me nt a c ro ss the g ro up

Diagnostic s & Day Hospitals

• Ma ximise ve rtic a l inte g ra tio n a nd pa tie nt o utc o me s with a dva nc e d sc ie nc e
• Gro w g e ne ra l fe rtility re la te d pa tho lo g y
• 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

23

ARS is a lo ng-te r m gr

• wth mar

ke t

• Dome stic fina nc ia l pe r

for ma nc e in H1F Y17 ha s be e n disa ppointing

• Str

a te g ie s in pla c e to a ddr e ss dome stic unde r pe r for ma nc e

• Inte r

na tiona l Ope r a tions pe r for ming str

• ng ly a nd dive r

sific a tion str a te g ie s on tr a c k

• De mog r

a phic dr ive r s for ARS g r

• wth r

e ma in fa vour a ble g loba lly

Vir tus is we ll po sitio ne d to c o ntinue to c r e ate shar e ho lde r value

CONCL USION

24

APPE NDICE S

25

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

• m T

F C to full se r vic e and small gr

• wth in diagno stic r

e ve nue

KPIS – AUST RAL IAN SE GME NT

Vir tus Note H1F Y17 H1F Y16 Change

Numb e r o f I VF Cyc le s in Virtus Austra lia 1 8,070 8,699 (7.2%) 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 12.4% 13.5% (1.1%) Numb e r o f I VF Cyc le s in NSW, QL D, T AS, VI C, ACT ma rke t 1 18,665 19,860 (6.0%) E a st sta te s ma rke t sha re 1 43.2% 43.8% (0.6%) Na tio na l ma rke t sha re 1 36.9% 36.7% 0.2% T re a tme nt vo lume 2 15,416 15,455 (0.3%) Ave ra g e numb e r o f F e rtility Spe c ia lists 105 98 7.2% Ave ra g e numb e r o f c yc le s pe r F e rtility Spe c ia list 77 88 (12.5%) Ave ra g e a g e o f F e rtility Spe c ia lists 50 50 0.0% Ave ra g e to ta l re ve nue pe r c yc le (A$) 13,771 13,352 3.1% L a b o ur a s a % o f to ta l re ve nue 31.2% 28.7% 2.5% Pro vide r fe e s a s a % o f to ta l re ve nue 15.3% 15.2% 0.1% Re po rte d se g me nt E BI T DA ma rg in % 30.3% 34.3% (4.0%)

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 . ACT inc lude d in H1F Y16 like fo r like c o mpa riso n 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

26

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 PGD 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

1042 118 227

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

SCIE NT IST S

27

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 unde rwa y

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

(“NHMRC”) re vie wing Austra lia n re g ula tio ns fo r 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

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

RE GUL AT ORY E NVIRONME NT

28

VIRT US T RE AT ME NT ANAL YSIS

6,995 7,346 7,617 7,663 8,510 8,070 785 1,272 1,340

HF Y12 HF Y13 HF Y14 HF Y15 HF Y16 HF Y17

Austra lia n Cyc le s I nte rna tio na l Cyc le s

8,448 9,782 9,410

53% 32% 15%

T r e atme nt Mix

Cyc le F ro ze n AI / OI

Vir tus Cyc le s

T HANK YOU