F INANCIAL RE SUL T S PRE SE NT AT ION F Y2017 ue sda y 22 - PowerPoint PPT Presentation

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 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 IONAL OVE RVIE W F Y2017 3

F Y17 F INANCIAL RE SUL T S OVE RVIE W Challe nging do me stic ARS c o nditio ns; gr o wth in diagno stic s & inte r natio nal ac tivitie s 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 oup 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 ofit 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 oup E BIT DA unding c a pa c ity ~$60m ($51m unuse d b o rro wing fa c ility a nd ~$9m unc o mmitte d Ca sh/ De bt F c a sh) F ina l divide nd 12c ps fully fr a nke d (F Y16:15c ps) 4

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 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 • 5

AUST RAL IAN SE GME NT PE RF ORMANCE 6

Vir tus Austr alia: Ac hie ve me nts Vir tus is we ll plac e d to r e spo nd to industr y c halle nge s and var iability 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 Austr alian vic e Mode ls) T F C (Se r F e r tility 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; • Busine ss 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 ) 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 • Diagnostic s 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 • $5m o f fo r e c ast annualise d savings fo r F Y18 7