MONASH IVF GROUP LIMITED — Earnings Release 2015

Aug 27, 2015

ASX/Media Release

28 August 2015

Solid Performance from Monash IVF Group in FY15

Monash IVF Group (ASX: MVF), a leading provider and driving force in fertility care, womens imaging and diagnostics in Australia and Malaysia, today reported a 9.6% lift in Group revenues to $125 million and normalised net profit after tax (NPAT) of $23.3 million for the year ended 30 June 2015 (FY15).

Highlights

• Revenue of $125 million, up 9.6% on FY14

• Normalised NPAT[1] of $23.3 million, up 3.1% on FY14

• Statutory NPAT of $21.4 million (FY14 $4.9 million)

• Normalised NPAT was lower than Prospectus NPAT by $2.7 million largely due to lower assisted reproductive services (ARS) industry growth rates.

• Total Patient Treatments of 15,861 up 11% on FY14

• Overall Group ARS market share increased to 39.5% in MVF‟s key Australian markets (FY14 38.8%)

• Continued growth and expansion of KL Fertility in Malaysia with revenue up 21% in FY15 and Patient Treatments up 13.9%

• NSW ARS acquisitions integrated – Next Generation Fertility (Western Sydney), Fertility East (Sydney eastern suburbs)

• Acquisition of Sydney Ultrasound for Women (SUFW) business, further broadening the Group‟s revenue and geographic footprint

• Ultrasound revenues up 5.4% (excluding SUFW) in MVF‟s womens imaging services

• Continued investment in science and innovation through the Monash IVF Research and Education Foundation, with 15 new projects funded in FY15

Financial Results FY15

Financial Results FY15
Metric	FY15 ($A) **Actual **	FY15 ($A) Prospectus	FY14 ($A) **Actual **	Variance to FY14
Grouprevenues	$125.0m	$130.3m	$114.0m	9.6%
OperatingEBITDA	$41.3m	$45.1m	$39.7m	4.0%
NormalisedNPAT	$23.3m	$26.0m	$22.6m	3.1%
StatutoryEPS	9.2cps	11.2cps	2.0 cps
NormalisedEPS	10.0 cps	11.2cps	9.8 cps
Total FY15 dividend	6.95 cps	N/A	N/A

Monash IVF CEO and Managing Director, James Thiedeman said: “Our strategy of building on our heritage of scientific excellence and clinical innovation has enabled MVF to deliver a solid financial and operating performance in FY15.”

“In particular, our 40-year heritage of leadership in science and innovation in ARS, coupled with some of the most experienced group of doctors in the industry enables us to provide our patients with the highest chance of success and the most effective and appropriate treatment.”

Market share increase; expanding domestic footprint

The Group increased its share of the Key Markets in which Monash IVF operates in Australia by 1.8% to 39.5%, a solid performance against a backdrop of an Australian ARS market that grew slower than expected. The Group has noted previously that ARS growth rates in Australia can fluctuate from time to time. The Group is seeing a return to normal long term historical growth rates in Australia.

1 Normalised NPAT is NPAT adjusted for one off start up and acquisition costs (tax effected)

Page 1 of 3

Monash IVF Group has continued to execute its strategy of geographic expansion in Australia. In December 2014 Monash IVF Group successfully acquired the Fertility East business in Sydney, which has delivered to expectation in FY15.

The Group opened a new clinic in Wagga Wagga (regional NSW) and additional service centres in the Melbourne CBD and Adelaide in FY15.

The low intervention clinics recently launched – MyIVF in Brisbane and BUMP IVF in Sydney - continued to gain momentum and make a positive contribution to the Group, generating 2.7% of the Group‟s total patient treatments in FY15. While it remains early days for these businesses, there are no signs of any adverse impact on the Groups‟ full service clinics.

An important driver of future growth in total Patient Treatments is the uptake in pre-implantation genetic screening and diagnosis (PGS/D). These services grew by 52% in FY15 and the Group now offers world‟s best technology through „Next Generation Sequencing‟ and Karyomapping.

International growth

The KL Fertility business in Malaysia continued to enjoy strong growth in FY15 with revenues up 21% to $5.6 million and EBITDA up 9.6% to $2.3 million. KL Fertility recorded total Patient Treatments of 1,024 in FY15 (versus 899 in FY14) and a new fertility specialist was recruited.

Womens Imaging Services

Monash IVF Group has made substantial progress in expanding its service offering in the womens health sector in FY15.

The Group acquired the SUFW network in June 2015, providing significant additional scale to its specialist womens imaging division alongside its existing Monash Ultrasound for Women business in Victoria. SUFW brings to the Group 11 clinics across metropolitan Sydney, broadening both the geographic and the revenue footprint of Monash IVF Group. SUFW generated revenues of $19.8 million and performed in excess of 55,000 scans in FY15.

Excluding SUFW, total revenue from the Group‟s womens imaging division in FY15 were up 5.4%, scan volumes increased by 1.7% and Non Invasive Prenatal Testing (NIPT) increased 71%.

Outlook

Looking ahead, the fundamental drivers for growth in the ARS industry remain unchanged notwithstanding lower overall market growth in FY15.

In July 2015 Monash IVF Group has seen improved growth in total Patient Treatment volumes with growth in its Key Markets.

Monash IVF Group‟s performance in FY16 will benefit from the full-year contributions of the recent acquisitions, Fertility East and SUFW. The Group is currently reviewing further acquisition opportunities both domestically and internationally.

The low intervention businesses, MyIVF in Brisbane and BUMP IVF in Sydney are already making positive contributions to the Group and in FY16 Monash IVF Group will look at other suitable locations for new clinics.

James Thiedeman said: “Our focus for the year ahead is to continue to develop industry leading science and technology in the ARS and broader women‟s health sector so that our patient‟s prospects to deliver a healthy baby are as strong as they can possibly be.”

…Ends….

Page 2 of 3

Investor Conference Call

Investors are invited to join CEO and MD James Thiedeman and CFO Rodney Fox on a conference call on Friday 28 August 2015 at 10.30am AEDT.

Passcode: 5571090

Dial In:

Australia 1800 801 825 or +61 2 8524 5042 Ireland 1800 720 105 Canada 1855 842 3490 Italy 800 875 577 China 4001 200 539 Japan 0120 271 900 France 0800 916 599 Malaysia 1800 816 107 Germany 0800 1899 399 New Zealand 0800 452 905 Hong Kong 800 905 927 Singapore 800 616 3222 India 000 800 100 8255 UK 0800 015 9725 Indonesia 00180 301 91840 US +1 631 5142 526

Investor Enquiries:

James Thiedeman Chief Executive Officer & Managing Director Monash IVF Group +61 3 9420 8235

Media enquiries: Justin Kirkwood +61 2 9231 5600 +61 411 251 324 Justin@kirkwoods.com.au

About Monash IVF Group

Monash IVF Group is a leading provider of assisted reproductive services and specialist womens 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.

Page 3 of 3