Monash IVF Group Annual Report 2021

Chairman’s Report

Mr Richard Davis — Independent Chairman

This is an exciting time for Monash IVF Group as we gain momentum on our growth journey. As we continue to invest in the future, we maintain our commitment to scientific leadership, the highest quality standards and to improving the lives of our patients and our communities.

As we grow our businesses and expand our capabilities, we are benefiting from our reputation as a leader in reproductive care in all of our markets.

Strong industry growth

During FY21, we responded to a strong industry shift in IVF services, resulting in positive volume growth across our business. Some of the key macro themes that favoured our core business proposition included behavioural shifts in patients as COVID-19 created more focus on families and wellbeing, advances in technology and increased government funding support.

The flow on effect from the COVID-19 pandemic in 2020 also saw significant revenue growth in Q1FY21 due to pent-up demand from deferred treatments created in Q4FY20, which only accelerated over the year. The strong underlying demand for domestic IVF services was evident with stimulated cycles across Australia growing by 31.1% in the period, bringing the 5-year annual CAGR to 5.6%.

To best leverage the positive industry dynamics, our marketing efforts in the period have been a key driver of our market share gains and led to a 40% increase in new patient stimulated cycles. Our current new domestic patient registrations for stimulated cycles will help us drive continued volume growth in FY22.

Investing in the future

The performance across our strategic pillars – scientific leadership, patient experience, doctor partnerships,
clinical excellence, people engagement, brand & marketing , digital & systems transformation and international
expansion – has been extremely impressive.

Notable developments have included the appointment of highly engaged medical specialists across our fertility and ultrasound businesses, the opening of our new Sydney CBD flagship clinic, achieving positive engagement scores, and the deployment of several successful marketing initiatives, such as the launch of our new brand positioning

“We have set ourselves the right strategic objectives and have a strong leadership team in place to deliver sustainable growth over the long term.”

Mr Richard Davis
Independent Chairman

Our outstanding capabilities across all facets of our business are reflected in our ability to continue to improve clinical pregnancy rates, whereby the chances of our patients having a healthy baby are now 4.5% higher compared to calendar year 2018. These results, and our commitment to driving future improvements, will be key to our goal of becoming the most admired reproductive care provider in the world.

I have touched on the impact the ongoing pandemic has had on the mindset of our patient cohort, with greater focus on family, health and wellbeing resulting in re-direction of priorities towards family extension. We expect these factors to continue to drive growth in FY22, and we will keep investing in strategic initiatives that support our future growth.

Quality without boundaries

As we grow our businesses and expand our capabilities, we are benefiting from our reputation as a leader in reproductive care in all of our markets. Monash IVF Group has been built on a culture of quality that is reflected not just in our innovative technology, but in our people, our partnerships, and our forward thinking. Maintaining a culture with quality and patient excellence at its core will ensure we continue to deliver the highest standards in the future.

Strong corporate governance

In September 2020, we appointed Ms Catherine West as Independent Non-Executive Director, who brings considerable acumen to the business with over 25 years of legal, business affairs and strategy experience in Australia, the UK and Europe. Catherine was also appointed as a member of the Remuneration and Nomination Committee.

Conclusion

Looking ahead to 2022 and beyond, I am very optimistic for the future of Monash IVF Group. I believe we have set ourselves the right strategic objectives and have a strong leadership team in place to deliver sustainable growth over the long term. Monash IVF Group has outstanding technology capabilities and a dedicated and passionate team working hard to deliver excellent outcomes for our patients. Over the last year, I have seen this passion and dedication first hand, and I want to take this opportunity to thank every one of the team for their hard work and commitment.

Finally, on behalf of the Board I would like to thank our shareholders for their ongoing commitment as we look forward to even greater things in FY22.

Sincerely,

Mr Richard Davis

Independent Chairman