F I NANCI AL RE SUL T S PRE SE NT AT I ON H1F Y20 T - PowerPoint PPT Presentation

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 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 o 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. 2

RE SUL T S & OPE RAT I ONAL OVE RVI E W H1F Y20 3

H1F Y20 F ina nc ia l 4 Re sults NPAT attr ibutable to or dinar y e quity holde r s DA $39.5m 1 E BIT Re ve nue 1.0% Unde r lying E BIT DA stable at 2.3% $32.1m (e xc l. AASB 16 L e ase s $142m impac t) $15.0m 1 E BIT DA Mar gin (e xc l. PS 2.4% E Inte r im Divide nd e ase s’ impac t) 1 AASB 16 ‘L 12 c ps 18.65 c e nts 0.5% fully fr anke d 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 o 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 4

Virtus He a lth 5 Ove rvie w 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 o 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 • 5

AUST RAL I AN SE GME NT PE RF ORMANCE Se gme nt Re ve nue Se gme nt E BIT DA 0.3% $112.8m $39.7m 6

Austra lia n o pe ra tio ns 7 Defend and 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 • build 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 • premium ma rke t c o nd itio ns business Grow low 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 • price o ve ra ll vo lume s volume 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 Sta b le re ve nue • Diagnostics Co st ma na g e me nt initia tive s imple me nte d • revenue Inc re a se d c a pa c ity a nd ra ng e o f te sts • Grow non Re ve nue g ro wth o f 6.8% o n no n-IVF pro c e d ure s • IVF Day 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 • Hospital c o mmissio ne d fa c ilitie s revenue 7

Austra lia n Ope ra tio ns Assiste d Re pro duc tive Se rvic e s 8 (“ARS”) E BIT DA inc r e ase s 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 o 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 • 8

Austra lia n Ope ra tio ns 9 Dia g no stic s Diagnostic r e ve nue stable , E BIT DA impac te d 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 • 9