MONASH IVF GROUP LIMITED — AGM Information 2016

Nov 23, 2016

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ASX Announcement

Monash IVF Group Limited (ASX: MVF)

24 November 2016

MONASH IVF GROUP ANNUAL GENERAL MEETING: ADDRESS BY CHAIRMAN, MR RICHARD DAVIS

Good afternoon and welcome to Monash IVF’s third AGM since listing on the ASX.

Today I will focus on our key achievements and financial performance before handing over to James to take you through the detail of our achievements, performance and outline the strategies and prospects for future financial years.

Monash IVF Group has delivered a strong financial result for 2016 derived from a business focus on developing and maintaining industry leading science and technology in assisted reproductive services and women’s imaging.

Group revenues were up 25.3% to $156.6m. Reported net profit after tax (NPAT) increased 34.6% to $28.8m. The board has declared a fully franked final dividend of 4.5 cents per share. The total fully franked dividend per share for FY16 is 8.5 cents and represents a dividend payout ratio of 70%.

Revenue growth was driven by total patient treatments up 12.9% on the previous year, well above industry growth rates. Monash IVF Group continues to grow overall market share and has made inroads in the NSW market, growing market share from 5.6% to 8.3%. In the Victorian and South Australian markets – where we are the dominant player – we maintained market share.

The combination of Sydney Ultrasound and Monash Ultrasound for Women's 17 locations now represents almost 17% of Monash IVF Group's revenues, providing greater diversification of earnings and an opportunity for the cross referral of services.

KL Fertility in Malaysia continues its growth trajectory, with revenues up 10.7% and patient treatments up almost 20%. Our newer fertility specialists in our KL clinic are continuing to build their volumes.

Our science and research investment is also paying dividends as we’ve continued to see a strong uptake by patients using our leading embryo genetic screening technology, with demand for the test up over 70% on the prior period. We have also seen a quadrupling of our non‐invasive pre‐natal testing (NIPT) to more than 9000 tests in FY16. We are proud to offer our patients such unique and

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important diagnostic testing services that can make a significant difference to the likelihood of a healthy pregnancy outcome.

We’ve also invested in new reproductive consulting locations in key suburbs to broaden our geographic footprint. We’ve expanded our Gold Coast presence with a new purpose built clinic, and added new ultrasound clinics in Sunshine and Berwick. Our Malaysian clinic will soon relocate to a superior facility over the coming months to assist with future growth.

The strong financial results for 2016 confirm and validate the Group’s strategy. The results also give the company the confidence to continue exploring the right growth opportunities in existing markets, and further afield.

I would like to extend my thanks to our Board of Directors for their support in 2016 and on behalf of the Board I extend our thanks to James and the senior management team for delivering a significant financial result. Thanks also goes to the Group’s dedicated and passionate doctors, nurses, scientists and support staff that make sure every patient is given superior care.

Finally, my thanks to you, our shareholders, for your ongoing support. I look forward to updating you on our achievements in 2017 and beyond.

I now invite Chief Executive Officer James Thiedeman to provide further details.

‐ENDS‐

About Monash IVF Group

Monash IVF Group is a leading provider of assisted reproductive services and specialist women’s imaging and diagnostic services in Australia and Malaysia. The Group is a driving force in the development of assisted reproductive technologies and has many Australian and world firsts since the work of our pioneers who achieved the first IVF pregnancy in the world in 1973.

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