Annual Report 2021
Leading the
future of
reproductive
care.
About Us
Leading the future
of reproductive care.
Monash IVF Group has been providing leading
reproductive care for 50 years. Our team
includes experienced fertility specialists,
sonologists, genetic counsellors, scientists,
nurses, phlebotomists, ultrasound technicians,
sonographers, donor and surrogacy experts and
support teams, all of whom are passionate about
supporting people through their entire fertility and
pregnancy journey.
We offer holistic, integrated care from
pre‑conception health assessments to genetic
testing and counselling through to fertility
treatment options, and women’s ultrasound
services, so we’re with our patients at every stage
of their journey.
We’re passionate about helping our patients
achieve a family, no matter their life stage
or circumstances.
We believe it’s never too early to take care
of your reproductive wellbeing which is why
we provide information on early, proactive
steps you can take to prepare your body
for pregnancy down the track.
Whether our patients need help with
endometriosis or PCOS, advice on their
menstrual health, are looking to preserve their
fertility, or simply want peace of mind about their
family prospects, we are here to support them.
If they need fertility treatment, rest assured they
will be in expert hands.
We’re not just a fertility provider ‑ we’re a fertility
partner. With more than 50 years of experience
and 42,000‑plus babies delivered, we’re leaders
in the reproductive field. Our patients are nurtured
and cared for by a team of highly‑skilled experts
at every step of their fertility journey.
B.
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewLeading the future of reproductive care. Best i n c
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Contents
Chairman’s Report
Managing Director & CEO’s Report
Financial Overview
Chief Financial Officer’s Report
Our Strategy
Our Pillars
Board of Directors
Management Team
Directors’ Report
Remuneration Report – Audited
Auditor’s Independence Declaration
Corporate Governance
Consolidated Statement of Profit or
Loss and Other Comprehensive Income
Consolidated Statement of
Financial Position
Consolidated Statement of
Changes in Equity
Consolidated Statement of Cash Flows
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Directory
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Year in Review
A Year in Review
A Year in Review
An additional Day
Hospital opened
12.11.20
Sydney CBD
Total domestic
stimulated cycles
36.6%
on FY20 (FY21; 9,808)
New patient
stimulated cyles
40%
Ultrasound
scans
12.9%
on FY20 (FY21; 92,776)
Non-invasive
Pre Natal Testing
17.8%
on FY20 (FY21; 15,877)
Total Group
IVF treatments
32.5%
on FY20 (FY21; 19,733)
Pregnancy
Rates
Improved by
since 20184.5%
Engagement –
Culture of Success
61%
NPS
score
+61%
up from 58.5% in 2020
12 New Fertility Specialists
joined Monash IVF Group in FY21 through recruitment,
as well as through our internal training program.
02.
Managing Director & CEO’s ReportChairman’s ReportAbout UsLeading the future of reproductive care.
Revenue
Adjusted NPAT 1,2,3
Adjusted EBITDA 1,2
$183.6m
26.3% on FY20
$23.3m
61.5% on FY20
$47.7m
37.1% on FY20
Adjusted EBIT 1,2
Reported NPAT 3
Reported EBITDA 1
$34.8m
42.6% on FY20
$25.5m
116.9% on FY20
$51.3m
56.2% on FY20
1. Non‑IFRS measure
2. Refer to page 29 for reconciliation of
Reported EBITDA, EBIT and NPAT to
Adjusted EBITDA, EBIT and NPAT
3. NPAT including minority interest
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Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Chairman’s Report
Chairman’s Report
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.
MVF stimulated cycle
36.6%
growth in FY21
04.
Managing Director & CEO’s ReportYear in ReviewAbout UsLeading the future of reproductive care. 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,
New domestic patient
stimulated cycles
40%
increase in FY21
Mr Richard Davis
Independent Chairman
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Managing Director & CEO’s Report
Managing Director & CEO’s Report
Our FY21 performance was ahead of market expectations
not only due to record industry growth in Australia, but
through Monash IVF Group’s collective efforts to increase
its market share and build for future sustainable growth.
We are pleased to have
delivered a strong
financial performance in
FY21 against a backdrop
of attractive industry
fundamentals that saw
ARS services in Australia
reach record levels.
By executing on our strategy, we delivered
revenue growth of 26.3% to reach total
revenue of $183.6m, buoyed by market
share gains and strong industry volumes.
Stimulated cycle market share grew by
0.6% to 21.0% in Monash IVF Group’s key
markets underpinned by an increase in
marketing investment, which is growing the
short‑term and long‑term patient pipelines.
Over the course of the year, we were able
to attract new fertility specialists in New
South Wales, Queensland and Victoria,
who have contributed significantly to
building solid patient pipelines and
fostering strong patient relationships.
Recent doctor engagement scores have
been at record levels, demonstrating a
‘culture of success’ that our Company
upholds across its fertility and
ultrasound operations.
New clinical infrastructure is paramount
to continued execution of our strategic
growth objectives, and we are excited
by the progress made during FY21
to add capacity and increase our
market presence. In November 2020,
our new Sydney CBD flagship clinic,
which represents best practice patient
experience, opened and has already
performed more than 200 stimulated
cycles. We have a number of new clinics
in the pipeline for FY22, including projects
that are well advanced in Melbourne, Gold
Coast and Penrith. Our South East Asian
expansion strategy is also progressing
despite COVID‑19 challenges.
We are proud of the positive momentum
we have created during the year, and
we will enter the FY22 year focused on
continuous improvement to pregnancy
rates and patient experience.
FY21 Performance
Our business achieved strong growth in
FY21. Revenue growth in the period was
underpinned by market share gains and
industry volume growth, with revenue
accelerating in 2H21 compared to 1H21.
FY21 started strongly due to the pent‑up
demand/deferred treatment resulting
from an initial COVID‑19 related
shutdown of services in Q4FY20, and this
momentum continued resulting in strong
volume growth throughout the year.
Notwithstanding on‑going and sporadic
COVID‑19 related lockdowns, IVF services
have been largely undisrupted and as
a result, growth continued throughout
the year. Market share gains were
achieved in Victoria, New South Wales,
Queensland and Northern Territory whilst
the exceptionally high level of market
share in South Australia was maintained
above 60%.
Building on strong foundations
Since 2018, we have improved our clinical
pregnancy rates by 4.5% following a huge
amount of effort invested into improving
outcomes for our patients, including
harmonisation of laboratory protocols
and new innovation.
06.
Chairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. We faced a year of
challenges and
opportunities in 2020. I
am enormously proud
of how adaptive and
resilient our employees
were in the face of a
global pandemic.
Michael Knaap
Chief Executive Officer
& Managing Director
During FY21, some of the key initiatives
we implemented to drive further
improvements included:
• The publication of the first PIEZO
clinical trial (a gentler form of
microinjection) with continued
recruitment of the phase 2 multi‑centre
clinical trial across 5 Monash IVF
Group sites
• Sperm selection device development
(Felix) in partnership with Memphasys
(ASX:MEM) is progressing and on track
for phase 1 clinical trial
• A continued focus on Research and
Development with the submission
and presentation of 21 scientific/
clinical abstracts at national and
international conferences
• Transition planning of Monash
IVF Group genetic laboratories
to G‑Category status to enable
best‑in‑class Preimplantation
Genetic Screening
• Looking ahead, we will be expanding
our genetics capabilities and service
offerings with innovation such as the
soon‑to‑be launched At Home Genetic
Carrier Screening Test.
We are confident our strategic outputs
are assisting in driving the current
strong new patient and returning patient
pipelines and with our sustainable
marketing investment, those levels are
expected to continue to grow in FY22
and beyond.
Our People
The Employee Value Proposition at
Monash IVF Group has been a key
priority in FY21. We continue to position
ourselves as a dynamic industry leader
in reproductive care and we offer
prosperous workplaces for those driven
to make a difference. At the heart of our
strategy has been an effort to transform
our people and culture proposition to
offer exceptional employee experiences
and ways of working that inspire our
771 employees across 125 locations.
We were thrilled to achieve record
Group engagement scores in 2021
which exceeded our 2022 targets and
industry benchmarks.
I have touched on some of the new fertility
specialists that have joined the Group in
2021. A further key hire made in the period
was the appointment of Dr Tristan Hardy,
Genomic Pathologist, to the position
of Medical Director of Genetics. The
appointment is at a crucial time for the
Company as the new NPAAC Laboratory
Supervision Guidelines come into effect
for all IVF laboratories from August 2021.
This ensures the continuity of in‑house
genetic service offerings and provides
a platform for expansion of our genetics
suite of offerings in the future.
Looking ahead
We believe there is a fundamental shift
in the community whereby the on‑going
pandemic has changed the mindset of
our patient cohort with greater focus on
family, health and wellbeing resulting in
re‑direction of priorities towards family
extension. This shift has driven strong
industry growth in FY21 and is expected
to be maintained in FY22.
We faced a year of challenges in 2020
and continue to face further challenges
in 2021. I am enormously proud of how
adaptive and resilient our people were
in the face of a global pandemic and am
grateful for their unwavering commitment
to delivering services for our patients in
Australia and abroad.
I believe we have the right team and
strategy in place to deliver long‑term
sustainable growth and continue to
create value for all of our stakeholders.
I would like to extend my thanks to our
shareholders, patients, employees and
partners for their continual support.
Michael Knaap
Chief Executive Officer
& Managing Director
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Financial Overview
Revenue
FY21 Profit & Loss Overview
Adjusted ($m)
Group Revenue
Adjusted EBITDA 1, 2
Adjusted EBIT 1, 2
Adjusted NPAT 1, 2, 3
Reported ($m)
EBITDA 1
Depreciation & amortisation
EBIT
Net finance costs
Profit before tax
Income tax expense
NPAT 3
1. Non‑IFRS measure
FY21
183.6
47.7
34.8
23.3
51.3
(12.9)
38.4
(2.5)
35.9
(10.4)
25.5
FY20
% Change
145.4
34.8
24.4
14.4
32.8
(11.0)
21.8
(5.7)
16.1
(4.4)
11.8
26.3%
37.1%
42.6%
61.5%
56.2%
(17.3%)
75.8%
(56.1%)
123.0%
(136.4%)
116.9%
2. Refer to page 29 for reconciliation of Reported EBITDA, EBIT and NPAT to Adjusted EBITDA,
EBIT and NPAT
3. NPAT including minority interest
FY21 Cash flow Overview
($m)
Reported EBITDA
Income taxes paid
Net operating cash flow (post tax)
Capital expenditure
Payments for businesses/minority interest
Cash flow from investing activities
Free Cash flow 1
Proceeds from issue of shares
Dividends paid
Interest on borrowings
Payments of lease liabilities
Proceeds/(repayment) of borrowings
Other
Cash flow from financing activities
Net cash flow movement
Closing cash balance
FY21
51.3
–
(7.2)
44.1
(10.0)
(1.3)
(11.3)
32.8
–
(13.1)
(0.7)
(7.6)
(17.7)
–
(39.1)
(6.3)
8.8
FY20
% Change
32.8
2.6
(4.3)
31.1
(7.5)
(3.1)
(10.6)
20.5
77.5
(7.1)
(3.5)
(7.2)
(69.7)
0.3
(9.7)
10.8
15.1
56.4%
(100.0%)
(67.4%)
41.8%
(33.3%)
58.1%
(6.6%)
60.0%
100%
(84.5%)
80.0%
(5.6%)
74.6%
(100%)
(303%)
(158%)
(41.7%)
1. Free Cash flow is Net Operating cash flow (post‑tax) less cash flow from investing activities
$183.6m
26.3% on FY20
Adjusted EBIT
$34.8m
42.6% on FY20
Adjusted EBITDA
$47.7m
37.1% on FY20
$51.3m
56.2% on FY20
Adjusted NPAT
$23.3m
61.5% on FY20
Reported NPAT
$25.5m
116.9% on FY20
08.
Reported EBITDA
Movement in working capital
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Financial Overview
Chief Financial Officer’s Report
Chief Financial Officer’s Report
We experienced strong industry growth during the year across all our
domestic IVF markets and market share gains that drove 26.3% revenue
growth on FY20.
Our capex for the year was $10m which
included the new Sydney CBD clinic and
new equipment in our laboratories.
Going into FY22 and notwithstanding the
ongoing pandemic, the balance sheet is
well positioned to withstand any potential
impact the pandemic may present and
to execute and capitalise on potential
growth opportunities. These opportunities
include improvements to our clinical
infrastructure with project designs and
approvals obtained for new infrastructure
in Melbourne, Penrith, and the Gold Coast.
In South East Asia we now have two clinics
in Malaysia, a minority holding in Jakarta
and a soon to be built clinic in Bali which
all form part of our evolving strategy in
the region.
I would like to thank all our stakeholders,
including employees, doctors, and
shareholders, who collectively enable us
to achieve our mission of helping to bring
life to the world.
Malik Jainudeen
Chief Financial Officer
strong notwithstanding the pandemic.
Our ultrasound business also generated
additional $3.8m revenue following a 13%
increase in scan volumes.
Our reported NPAT was up by 117%
and our Adjusted NPAT of $23.3m
was 61.5% higher than FY20 noting
Adjusted NPAT excludes the impact
from JobKeeper subsidies in FY21,
commissioning costs associated with
the new Sydney CBD fertility clinic and
adjustments to Business Combination
earn‑out provisions.
The Group achieved an Adjusted
EBITDA of $47.7m, up by 37.1% with
EBITDA margin percentage improving
from 23.9% to 26.0%. EBITDA Margin
percentage improved following leverage
gained from the increase in volumes
which was partly offset by a 12% increase
in marketing expenditure, patient
communication through digital platforms
and approximately $1.7m of additional
costs related to the suspension of the
NI‑PGT genetic testing program.
Our cash flow performance during the
year was extremely strong with Free Cash
Flow increasing by 60% to $32.8m driven
by 100% cash conversion of EBITDA to
pre‑tax operating cash flows. $44.1m of
post‑tax operating cash flows allowed for
investment expenditure to be focused
on future growth initiatives including
new clinical infrastructure ($5.3m), new
state‑of‑the‑art laboratory assets and
technology ($2.1m) and $0.6m minority
investment in a new Jakarta based
fertility clinic which opened in February.
Monash IVF Group achieved strong
revenue growth, up 26.3% as a result
of 36.6% stimulated cycle growth and
12.9% ultrasound scan growth in FY21. In
Q1, we serviced all the pent‑up demand
created at the end of last year and strong
activity continued across the remainder
of the year.
Our first half revenue was close to $91m
and we surpassed that in the second
half with revenues of almost $93m.
Activity levels from Q1, which included
the pent‑up demand, continued for the
rest of the year, reflecting real underlying
growth in our business. As a result of the
26% increase in revenues, we generated
operating leverage whilst deploying
marketing initiatives to drive and maintain
our strong new patient pipeline and
support our doctors. In the period, we
have invested heavily in our nursing and
scientific workforce which is improving our
patient experience and in turn increasing
our staff and doctor engagement.
Our KL business generated an additional
$800k of revenue in a very challenging
environment due to the pandemic.
Movement control orders were in place
for most of the year in Malaysia and the
business did a great job to deliver more
than 1,000 stimulated cycles in FY21.
Our average IVF revenue per stimulated
cycle declined which resulted in a $1.8m
negative impact on revenue. This was
a result of offering no out‑of‑pocket
stimulated cycles to patients impacted
by the suspension of the Non‑invasive
preimplantation genetic testing (NI‑PGT)
program. This impact will reduce in FY22.
Our Fertility Solutions business in
Queensland, which we acquired in FY20,
generated an additional $1.7m revenue.
This clinic operates a hybrid pricing
model with full service and low‑cost
offerings. It was pleasing that the majority
of the additional revenue was generated
from providing a higher proportion of
full service cycles. This has helped us
validate that full‑service offerings are
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Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial Report
Our Strategy
Vision 2026
Our Strategic Pillars remain the
foundation and the core framework
of Vision 2026 in providing focus in
achieving our strategic goals.
Vision 2022 provided a clear roadmap that enabled the organisation to recognise
our priorities and guided our decisions to where we are now. Whilst a broad and
deep process was undertaken in developing the Vision 2026 Strategic Plan
including reflecting on the COVID‑19 pandemic, our overall vision and strategies
are largely consistent and in most cases, represent an evolution of Vision 2022
with some new strategic priorities. Also evident from this process was the very
clear view that the Vision 2022 Strategic Pillars remain relevant to our Vision
2026 Strategic Plan and the key priorities for Monash IVF Group.
Our Mission
We help bring life
to the world.
Vision 2026
The most admired
reproductive care
provider in the world.
Best in class fertility solutions, diagnostics,
genetics and pathology.
10.
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Our Strategy
Our Pillars
Our Pillars
Doctor
Partnerships
Patient
Experience
Scientific
Leadership
People
Engagement
International
Expansion
Digital
Transformation
Brand &
Marketing
Clinical
Infrastructure
Our Outcomes
Engagement
Patients, Doctors, People,
Regulators
Local & International
Market Share
Market Leading
Success Rates
Value Creation
Our Principles
Care
Commitment
Communicate
Collaborate
Create
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Board of DirectorsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Scientific Leadership
Monash IVF Group is committed to providing industry
leading success rates coupled with innovative technology
and research to ensure our patients have the highest
possible chance of a successful outcome.
Monash IVF Group has a unified
scientific leadership team led by the
Group Scientific Advisory Committee
(GSAC) which drives our scientific best
practice, world class research and new
technology implementation.
In FY21 the GSAC (comprised of the
Scientific Director team: A/Prof Deirdre
Zander‑Fox, A/Prof Hassan Bakos, A/
Prof Yanhe Liu, A/Prof Mark Green, Dr
Leanne Pacella‑Ince and Ms Jean Scott,)
has continued to focus on improving IVF
success rates across all of our clinics by
further aligning and optimising our scientific
protocols. In addition, strong attention was
paid to updating our equipment portfolio
as well as completing laboratory end‑to‑
end reviews.
FY21 also saw the launch of Government
facilitated success rates published
through the YourIVF Success Rates
website. Monash IVF Group was strongly
represented as being in the top echelon of
Australian clinics.
In addition to continual improvement
on success rates the following were
undertaken in FY21:
• Setting up exemplary COVID‑19‑safe
measures to ensure optimal patient
outcomes coupled with protection of
our scientific workforce. This included
having rigorous procedures for our
operating scientific teams to prevent
staff crossover and ensure continuity
of laboratory operations, with minimal
disruption to patients.
• Launch of a premium laboratory in
Sydney CBD, complete with state‑
of‑the‑art technology (time lapse
technology, vapour cryo‑storage
facilities and full integration with
operating theatres and transfer suites).
• Participation in the Vitrolife Embryomap
ß‑trial in preparation for the introduction
of a next generation PGT‑A platform,
with increased throughput capacity
coupled with reduced hands‑on time.
• Roll‑out of the Monash IVF Group
National Journal Club, as well as
Group‑wide scientific workshops and
courses to continue to foster scientific
education, engagement and training
across all laboratories.
• Submission and acceptance for
presentation of 21 scientific abstracts at
national and international conferences,
reinforcing our emphasis on science‑
driven patient care and outcomes.
Success Rates have
improved by
4.5%since 2018
12.
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Our Pillars
Doctor Partnerships
12 new doctors joined Monash IVF Group in FY21,
contributing to market share growth in our key markets.
Monash IVF attracted 12 new doctors
to join our teams in Victoria, New South
Wales, Queensland, South Australia and
Northern Territory through acquisition,
as well as through our own internal
training programs. We now have a total
of 123 clinicians working in IVF and
Women’s Ultrasound.
Our doctor engagement results were the
best they have ever been. We recorded
an engagement score of 61%, defined as
a culture of success. This demonstrates
more than ever that our doctors are
strong advocates for Monash IVF.
Our clinicians, in collaboration with our
scientists have led the way in continuing
to improve our success rates year‑on‑
year. This has been achieved through
meticulous continuous improvement and
implementation of best clinical practice in
all of our clinics in Australia and Malaysia.
We have further invested in timelapse
incubators to improve embryo and
gamete culture systems and PIEZO ICSI
technology to improve fertilisation rates
in our science laboratories.
The Monash Research and Education
Fund (MREF) distributed over $400K
of research grants to projects led by
our clinicians, scientists and nurses.
In total our clinicians lead a spend of
over $2.5 million dollars in research
and development activities to ensure
we remain at the cutting edge of
reproductive healthcare.
Our State Medical Directors in both IVF
and Women’s Ultrasound continued to
lead our clinical policy response to the
fast changing COVID‑19 circumstances,
to ensure the health of our people
and patients was maintained. It was a
significant achievement to keep our
services running continuously in Victoria
during the four month long lockdown.
A special mention also to all clinical teams
in our Women’s Ultrasound Clinics who led
our people to remain open throughout the
pandemic to provide critical pregnancy
scan services whilst public hospital
services were unable to due to COVID
response priorities.
The importance Monash IVF Group
holds for its doctor partnerships and
the significant investment of resources
that will continue to be made in initiatives
to improve the ability of our clinicians
to provide the absolute best care for
their patients, will ensure we continue to
onboard doctors into the Monash IVF
team through both the acquisition of fully
qualified practitioners and through our
own state based CREI trainee programs.
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Our StrategyBoard of DirectorsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Clinical Infrastructure
Monash IVF Group has delivered its commitment
to provide a centre of excellence in reproductive
healthcare in Sydney.
already outgrown this facility. We expect
our new Penrith IVF unit to be complete
by the end of financial year.
In Women’s Ultrasound we also have a
pipeline of infrastructure improvements in
both Sydney and Melbourne to enable us
to meet the growing demand for private
scans in these cities.
We have a number of significant projects
scheduled for this current year that
will facilitate further growth in our key
markets. The largest investment will
be in establishing a state‑of‑the‑art
reproductive care clinic with a fully
integrated Day Surgery Unit in Melbourne.
This is an exciting project that will bring
all our disciplines together along with
our corporate functions in the suburb of
Cremorne. Similarly, we are building a
comparable scaled facility to relocate our
Gold Coast services into. Both projects
will be completed in advance of the end
of financial year. Despite establishing our
Penrith unit only recently in 2019, we have
Our fully integrated IVF Unit at 201 Kent St
opened in November 2020 to signal
Monash IVF’s arrival in the CBD of Sydney.
We already have four fertility specialists
embedded in the facility providing world
class reproductive care services to
Sydney patients.
A new pathology laboratory was
commissioned in our Clayton IVF unit in
Melbourne to complement our genetic
PGT testing laboratory. This will ensure
the provision of world class Andrology
and Endocrine testing services under
the clinical leadership of Professor
Rob McLachlan.
We commissioned eighteen new General
Electric (GE) E10 Voluson ultrasound
machines in our Women’s Ultrasound
clinics, which will enable our sonologists
and sonographers to use the latest
technology to provide the very best
pregnancy diagnostics.
14.
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Our Pillars
Brand & Marketing
In FY21 our marketing strategy continued
to focus on four key drivers of growth:
brand differentiation, patient acquisition
and lifecycle engagement, patient value
proposition and marketing effectiveness.
Our new advertising campaign and patient acquisition strategies have contributed
significantly to our strong FY21 new patient registration results. Our Ready, Set, Baby
online content program, social media and virtual fertility retreats also continue to drive
strong growth in new patients and our retention rates by offering unrivalled holistic
and integrative care and support to new and existing patients.
We are proud to see that our marketing
strategy is proving effective and in FY21
contributed to a 40% increase in new
patients, an increase of 36.6% in domestic
stimulated cycles and market share gains
of 0.6%.
Brand differentiation
We are incredibly passionate about
our new brand positioning and believe
we have an important role to play in
challenging societal norms in how people
think about and behave in relation to
their reproductive care.
Through our marketing we are challenging
longstanding assumptions, debunking
stigmas and normalising infertility by
opening up conversation. By encouraging
people to take a more proactive, early
approach to their reproductive care.
We hope to increase their success in
starting their families.
Patient acquisition & lifecycle
engagement
In FY21 we refreshed our end‑to‑end
channel strategy and communication
program, resulting in our new advertising
campaign One in Six, our virtual events
strategy, new website and improved
social media engagement.
Marketing Effectiveness
Our robust marketing analytics and knowledge of the patient pipeline has allowed us
to continue improving the efficiency and effectiveness of our marketing investment.
We continue to see improvements year‑on‑year in all key marketing metrics.
Patient value proposition
Our best‑in‑class service proposition means patients receive the best possible
knowledge, care and services across their patient journey.
Holistic, integrated care with services across the entire reproductive
care journey. So, we’re with our patients every step of the way.
World class fertility experts who leave no stone unturned and are
meticulous in tailoring services to individuals’ particular needs.
Over 50 years of experience and over 42,000 babies delivered
meaning we are experts even in the trickiest cases.
A true pioneer in scientific advancements in reproductive care with
leading success rates that continue to improve year‑on‑year.
Improving access for all with 125 locations around Australia
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Our StrategyBoard of DirectorsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Digital transformation
COVID-19 continues to drastically change how our society
functions, with lockdowns and other social restrictions
impacting many aspects of our lives, including how our
patients can access care.
We have continued to meet these
challenges by offering a robust telehealth
solution and have also added additional
communication channels and services to
improve our ability to provide care for our
patients. This gives our team more options
to deliver the best patient care during
these difficult times while still maintaining a
secure and stable platform.
We are also continuing our Cloud first
digital strategy as we move multiple
aspects of our business to Cloud offerings
that provide improved functionality and
enable our team to focus on delivering
the next‑generation of Virtual
Healthcare Solutions.
These include extending the capabilities
and integrations of our mobile patient
management platform and a new
Electronic Medical Records solution.
We continue to invest in our technology
to deliver improved cybersecurity,
operational efficiencies and patient
care with the focus moving towards the
evolution of technology in healthcare. We
are investing in data analytics, artificial
intelligence and machine learning
to develop new ways to support our
clinicians and ensure patients receive
the best care.
International Expansion
In FY21, Monash IVF Group continued to build on its
foundations in the South-East Asian (SEA) region.
Monash IVF Group continues to leverage its
scientific and clinical capability, training and
development programs, brand strength and
industry leadership within the SEA region.
During FY21, the Group opened its first
clinic in Indonesia (Jakarta), with its partner
Mitra Keluarga ‑ a large reputable domestic
hospital provider. This added a state‑of‑the
art, full‑service clinic in one of the largest
metropolitan areas of Asia to the Monash
IVF Group portfolio.
The Group also entered into an agreement
to build a full‑service clinic in Bali, Indonesia
which is scheduled to open in FY22. The
Group currently has a presence in three key
cities in the region and will continue to build
on its portfolio.
16.
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Our Pillars
Delivering best in class patient experience
Providing truly empathetic and supportive patient
centred care continues to be the absolute priority
for our organisation. This was even more important
during the last 18 months as patients felt the stress
and uncertainty brought about by COVID-19.
• Opening a best‑in‑class full‑service
clinic in Sydney CBD, offering the best
in empathetic and supportive patient
centred care.
• Launching a web‑based Patient
Onboarding System in our South
Australian business.
•
Implementing a new phone system
into our Sydney Ultrasound for
Women business to streamline
calls and improve the patient
booking experience.
• Trialling the digitisation of the patient
registration process in Victoria.
•
Increasing our nursing and
administration resourcing to adjust
to increased patient demand.
• Launching a new website to provide
better access, information and support
to new and existing patients throughout
their journey.
•
•
Introducing an online donor portal
enabling patients to view donor listings
and select their preferred donors.
Introducing a new patient companion
handbook in Victoria to assist patients
to better understand and navigate
their journey.
The feedback from our patients confirms
that our patient care teams responded
to their need for increased support
incredibly well. Patients identified fertility
nurse support and scientific expertise
as key strengths in FY21. Our strong
Group Net Promotor Score of Net
Promotor Score of 65% up from 58.5%
on the previous year, in what has been
an incredibly challenging year, also
demonstrates how we are continuing to
improve patient satisfaction.
This year we continued to make strong
inroads into evolving and improving
the patient experience. A number
of key improvement initiatives were
delivered including:
•
Implementing a sophisticated
Customer Experience Management
platform that will deliver stronger
analytical capabilities, artificial
intelligence and multi‑channel
integration into our patient experience
measurement system. This in turn
will result in stronger insights and
prioritisation of the most important
improvement opportunities across
the entire patient experience.
.17
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Research and Innovation
Monash IVF Group is committed to pioneering
research and innovation to ensure that patient
outcomes are continually improving.
key opinion leader in Australia. This
collaboration is set to move to clinical
trial phase in FY22.
3. Identification and confirmation of a
novel marker of implantation in
collaboration with RMIT, resulting in
scientific publication and significant
media interest. Further investment
will see a clinical trial begin to
validate its use as a diagnostic test.
Alongside these projects, a focus of FY21
was the publication of numerous internal
research and innovation studies including
those on:
• Health and fertility of ICSI‑conceived
young men
•
Improvements in fertilisation
and embryo yield using PIEZO
microinjection technology
• Sperm diagnostics and the importance
of measuring sperm DNA damage
• Use of male nutraceuticals to improve
IVF outcome
• Embryo grading and links to
IVF outcome
• Efficiency of psychological
interventions on IVF
pregnancy outcomes
Monash IVF Group successfully partnered
with Monash University to be awarded
NHMRC funding on a project ‘Mitigating
the risk of Mitochondrial Donation’.
Moving forward, the Monash IVF Group,
with our growing number of academic
and commercial partners, have an
increasing number of scientific studies in
which our patients are currently being
recruited into.
Monash Research and Education
Foundation in conjunction with the Group
Scientific Advisory Committee (GSAC),
Chaired by A/Prof Deirdre Zander‑Fox,
have continued to drive research
and innovation by providing financial
support and internal scientific expertise
to undertake studies in the areas of
failed implantation, miscarriage, fertility
preservation and sperm selection. A
major accomplishment for FY21 has been
to foster a scientific workforce that is
engaged in scientific research to advance
our knowledge to continually optimise
treatment outcomes.
In FY21, notably three projects in the
expanding research and innovation
portfolio have advanced considerably:
1. Further advancement in the PIEZO
microinjection technology occurred,
with a publication of the initial trial
as an Australian first, coupled with
ongoing second‑phase clinical trial
recruitment. The article “PIEZO‑ICSI
increases fertilization rates compared
with standard ICSI: a prospective
cohort study” (https://www.rbmojournal.
com/article/S1472‑6483(21)00279‑0/
fulltext#:~:text=Results,0.003)%20
compared%20with%20standard%20
ICSI.) was published in the Reproductive
BioMedicine Online (RBMO) platform.
2. Development and optimisation of a novel
sperm separation device in collaboration
with Memphasys Ltd occurred, as their
18.
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Our Pillars
Genetics and Diagnostics
Genetics is entering an exciting phase at Monash IVF
Group. Genetics extends beyond traditional infertility
treatment and applies to anyone who is either planning
a pregnancy or is pregnant.
The advances in genetics represent an
opportunity to connect with a broader
base of patients who are keen to
understand how genetic testing can help
them achieve the goal of having a healthy
pregnancy. The Monash IVF Group
Genetics team is extremely well placed to
take advantage of all of the opportunities
in this growing field and become a world
leader in reproductive genetics.
All areas of reproductive genetics,
including preconception genetic carrier
screening, preimplantation genetic testing
of embryos and non‑invasive prenatal
testing during pregnancy, have shown
considerable growth in FY21. Our team
provides a world class service to our IVF
units and specialist ultrasound units and
our expertise in genetics is increasingly
recognised locally and internationally.
Our presence at national and international
conferences and publication in high
quality journals of research in prenatal
diagnosis and preimplantation genetic
testing is testament to the high quality
of our team.
In recognition of the importance of
genetics to the strategic direction of the
company, Monash IVF Group appointed
Dr Tristan Hardy to the role of Medical
Director of Genetics. Dr Hardy has strong
connections with the public health sector,
as well as research and commercial
genetics companies, which will leverage
Monash IVF Group to drive innovation
in this space. He is supported in his role
by Dr Melody Menezes, Head Genetic
Counsellor & Scientific Director, a national
leader in the genetic counselling field.
A key pillar of our genetics strategy is
the provision of genetic counselling and
laboratory services for individuals and
couples who wish to have genetic carrier
screening. Genetic carrier screening
is the process of comparing the DNA
sequences of a reproductive couple prior
to pregnancy or during pregnancy to work
out if there is a chance of having a child
with a significant medical condition. The
Royal Australian and New Zealand College
of Obstetricians and Gynaecologists
recommends that all individuals and
couples planning pregnancy are offered
carrier screening. Although genetic
conditions in childhood are individually
rare, collectively they are common with 1
in 40 couples at high risk. These couples
will be able to access prenatal diagnosis
through our ultrasound clinics or may
decide to undergo IVF with genetic testing
of embryos to minimise the chance of
having a child with a genetic condition.
The Monash IVF Group Genetics team
has developed an at‑home genetic carrier
screening test which will be available
for patients having treatment within the
Group. More importantly, it will extend the
reach of our services and connect with
patients who are planning pregnancy in
the community, allowing them to achieve
the goal of having a healthy pregnancy
and beginning their journey with us if they
have any reproductive difficulty along
the way.
In recognition of the importance of
preimplantation genetic testing as part
of the reproductive journey for these
couples, the Federal Government
committed $95.6 million to new MBS
items supporting preimplantation genetic
testing for couples in this scenario. As
we transition to a fully‑fledged Genetic
Pathology laboratory under the new
national guidelines, we will continue
to meet the regulatory requirements
to provide this testing. Moreover, our
research and development activities
will continue to focus on new methods
of preimplantation genetic testing and
establish our team as world leaders in
this space.
There are many more
opportunities on the
horizon and our team
are excited to deliver
further developments
to assist Monash IVF
Group in its’ mission
to help bring life to
the world.
.19
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Our People
Monash IVF Group’s Employee Value Proposition is
‘Together we lead the evolution of care’ and in the past
year our employees responded with commitment to
ensure we continued to deliver just that.
Enabling dynamic workplaces for those driven to make a difference.
Our people and culture strategy recognises that by optimising our workforce and
empowering our people we are able to advance science and specialised services,
improve care and enhance communication. We continue to evolve our Learning &
Development Framework to facilitate formal and informal training solutions with over
1,445 active learning modules, aligned to individual and specialised learning pathways
for all of our people, ensuring individual and organisational growth and development.
Our People Are
Brave and
Future-focused
Curious and
Insightful
Driven and
Active
Kind and
Compassionate
Our Diversity & Inclusion Council
Monash IVF Group supports a diverse and inclusive workplace where every employee
feels valued and respected– a place where every employee can bring their whole
self to work every day. Diversity is about celebrating individual differences and
acknowledging the unique blend of knowledge, skills and perspectives our people bring
to the workplace. Inclusion is about empowering our people to contribute their skills
and perspectives to benefit our organisational performance and allow us to achieve our
mission to lead the future of reproductive care.
The more we collaborate and value differences, the closer we get to living a truly
inclusive community.
In 2021 Monash IVF Group took positive steps relative to our diversity and inclusion
strategy with the establishment of our first Diversity and Inclusion Council. This
council chaired by three Executive members, plays a key role in identifying and driving
strategic initiatives that make Monash IVF Group a greater place to work. We foster an
environment where different perspectives can be harnessed for both our employees
and, of course, our patients. The council will continue to work with key partners to
champion, monitor and deliver on these key initiatives.
Throughout the year, we remained focused
on the health and wellbeing challenges
arising from the pandemic, including
education and resources to support both
physical and mental health of our people.
We have embraced new ways of working
that support our people through the
challenges of COVID 19. Since the onset
of the pandemic, we have focused on
embedding Our Principles and adapting to
new ways of working. Our hybrid working
policy has enabled our people to be flexible
where possible and our COVID 19 Leave
Policy, including vaccination leave, has
ensured that we continue to prioritise the
health and wellbeing of our people.
A team that is undoubtedly proud
of the successes we achieve.
Our annual Employee Engagement Survey
provides us with valuable insights into
how our people experience working with
us, including what we are doing well and
where we need to focus our efforts to make
improvements. The strength of our culture
was recognised in 2021 with a record
engagement score of 61%, the highest
ever achieved in Monash IVF Group’s
history. This year the survey indicated
that our people have a strong alignment
to our strategic vision and our principles
and values and enjoy working with their
talented and caring colleagues. They see
an opportunity for improvement in how
we support the changing environment, as
well as how we respond to the increasing
workload. Our teams recognised and
valued the strong communication and
responsiveness relative to COVID 19.
20.
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Our Pillars
Clinical Governance
Monash IVF Group’s commitment to the provision
of the highest level of patient care and safety
has been demonstrated through the ongoing
development of our Clinical Governance
framework and Quality Management System.
Patient centred care is promoted through ensuring that everyone in the organisation is
accountable for ensuring that the services provided are safe, effective and continuously
improving. This is achieved with an emphasis on listening and learning:
Strong clinical leadership and management commitment to engaging with and
listening to our clinicians ensures that our quality management system takes
into account local clinic, state‑wide and national priorities and risk profile.
Education, training and continued professional development of our teams to
ensure that they are able to partner with all patients to provide them with access
to technologies, information and resources to support their decision making
about their care.
Providing an environment that respects differences, maintains dignity and
provides for our patients’ physical, emotional, medical and social needs.
Integrated risk management capability with a focus on measuring and
monitoring, evaluating clinical effectiveness, being open about adverse events
and their underlying causes and having the capacity to use this data to drive
targeted continuous improvement initiatives.
Communication across the Group through formal meeting and
committee structures, employee forums and webinars and sharing
of written information.
The ongoing COVID‑19 pandemic and variations in
exposure risks across the country have seen the
proportional implementation of safety measures
including screening, infection control, social distancing
and use of Personal Protective Equipment (PPE) to
protect our patients and teams, while continuing to
deliver the highest standard of healthcare.
.21
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Board of Directors
Mr Richard Davis
Mr Josef Czyzewski
Mr Neil Broekhuizen
Ms Catherine West
Independent Chairman
Mr. Richard Davis joined the
Group in June 2014 and is
currently serving as a non‑
executive director of ASX
listed companies, InvoCare
Limited and Australian Vintage
Limited (Chairman).
Richard worked for InvoCare
for 20 years until 2008. For
the majority of that time he
held the position of CEO and
managed the growth of that
business through a number
of ownership changes and
over 20 acquisitions, including
offshore in Singapore.
Prior to InvoCare Limited,
Richard worked as an
accounting partner of Bird
Cameron. Richard holds a
Bachelor of Economics from
the University of Sydney.
22.22.
Independent
Non-executive Director
Independent
Non-executive Director
Independent
Non-executive Director
Mr. Josef Czyzewski joined the
Group in June 2014 and has
over 30 years of experience
in senior finance positions
and significant experience
in the health industry. Josef
has held the positions of
CFO at Healthscope Limited,
and more recently CFO/
General Manager Strategy
and Development at Spotless
Group Limited following its
takeover by private equity
interests in 2012.
Prior to that time, Josef had
held various senior finance
positions with BHP Billiton
including VP Finance and
Corporate Treasurer. He holds
a Bachelor of Commerce from
the University of Newcastle
and is a Graduate Member
of the Australian Institute of
Company Directors.
Mr. Neil Broekhuizen is the
Joint Chief Executive Officer
of Ironbridge.
Neil has over 30 years
experience in the finance
industry, including 28 years in
private equity with Investcorp
and Bridgepoint in Europe
and Ironbridge in Australia.
He has sat on the Ironbridge
Investment Committee
since inception.
He is the Independent Non‑
executive Chairman of Bravura
Solutions.
Neil is qualified as a Chartered
Accountant and holds a BSC
(Eng) Honours degree from
Imperial College, University
of London.
Ms Catherine West was
appointed Non‑executive
Director to Monash IVF Group
on 8 September 2020. She
is an experienced ASX listed
non‑executive director and has
over 25 years of legal, business
affairs and strategy experience
in customer focused businesses
in the media, entertainment,
telecommunications and medical
sectors in Australia, the UK
and Europe.
Catherine is a non‑executive
director of ASX listed Nine
Entertainment where she is Chair
of the People and Remuneration
Committee and a member of
the Audit and Risk Committee.
Catherine is also a non‑executive
director of the Endeavour Group
and Peter Warren Automotive
Group. In addition, she is Vice‑
President of the Sydney Breast
Cancer Foundation at Chris
O’Brian Lifehouse, a director of
the NIDA Foundation, National
Institute of Dramatic Art and a
Governor of Wenona School.
She was previously on the board
of Southern Phone, a reginal
telecommunications company,
before its successful sale to AGL.
Catherine is also a consultant
to the healthcare sector and to
media companies internationally.
Catherine holds a Bachelor of
Laws (Hons) and a Bachelor of
Economics from the University of
Sydney. She is also a Graduate
Member of the Australian Institute
of Company Directors.
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Board of Directors
Ms Zita Peach
Dr Richard Henshaw
Mr Michael Knaap
Executive Director
Dr Richard Henshaw MD
FRANZCOG FRCOG has
practiced in the field of
reproductive medicine
since 1995.
Richard works as a Fertility
Specialist for the Group.
Richard has served on many
national bodies, including
RANZCOG Council, the
IVF Medical Directors
Group of Australia and
New Zealand, and the
Reproductive Technology
Accreditation Committee.
Chief Executive Officer
Managing Director
Mr Michael Knaap was
appointed to the role of
Chief Executive Officer and
Managing Director for Monash
IVF Group on 15 April 2019.
Following his tenure as MVF
Group’s Chief Financial Officer
and Company Secretary since
August 2015, Michael was
appointed to Interim CEO in
October 2018.
Mr Knaap has nearly 20
years experience in executive
positions with a strong
operational, strategic and
leadership background. Prior
to joining MVF Group, Michael
was with Patties Foods Limited
where he held a number of
executive positions over six
years, including the role of
Chief Financial Officer and
Company Secretary.
He holds a Bachelor of
Accounting from Monash
University and is a Certified
Practicing Accountant.
Independent
Non-executive Director
Ms Zita Peach has
more than 25 years of
commercial experience
in the pharmaceutical,
biotechnology, medical
devices and health services
industries, and has worked for
major industry players such
as CSL Limited and Merck
Sharp & Dohme, the Australian
subsidiary of Merck Inc.
Zita’s most recent executive
position is Managing Director
for Australia and New
Zealand and Executive Vice
President, South Asia Pacific
for Fresenius Kabi, a leading
provider of pharmaceutical
products and medical devices
to hospitals. Previously, Zita
was Vice President, Business
Development, for CSL
Limited, a position she held
for ten years.
Ms Peach is Chair of Pacific
Smiles Group Limited and
Non‑Executive Director
of ASX‑listed Starpharma
Holdings Limited and
Visioneering Technologies, Inc.
Zita is also a member of the
Hudson Institute of Medical
Research Board. Ms Peach
is a Fellow of the Australian
Institute of Company Directors
and a Fellow of the Australian
Marketing Institute.
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Monash IVF Group Annual Report 2021Our StrategyOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report J
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Management Team
Fiona Allen
Chief Marketing Officer
Nicolette Curtis
Regional Manager VIC
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Denise Donati
CEO/Clinic Manager
Fertility Solutions
Tedd Fuell
Quality, Regulatory &
Risk Manager
Anthony Gurney
General Manager
of SUFW
Pierre Abou Haila
Chief Information &
Projects Officer
Hamish Hamilton
Chief Operating Officer
Ben Howat
Regional Manager QLD
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Malik Jainudeen
Chief Financial Officer
& Company Secretary
Jan Lagerwij
International Business
Development Manager
May Q, Loke
Centre Manager
KLFGC
Shannon Neilsen
Regional Manager
NSW
Peggy North
Chief People & Culture
Officer
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Prof Luk Rombauts
Group Medical Director
Jonathan Whitty
General Manager of
MUFW & Pathology
A/Prof Deirdre Zander-Fox
Chair, Group Scientific
Advisory Committee
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Rebecca Redden
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Regional Manager
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Management Team
Monash IVF Group Limited
Directors’ Report
Directors’ Report
for the year ended 30 June 2021
For the year ended 30 June 2021
The Directors present their report together with the consolidated financial report of Monash IVF Group Limited
('the Group'), being the Company (Monash IVF Group Limited), its subsidiaries, and the Group's interest in
associated entities as at and for the year ended 30 June 2021, and the auditor's report thereon.
Directors
The Directors of the Company at any time during or since the end of the year are:
Mr Richard Davis
Mr Josef Czyzewski
Ms Catherine West (appointed 8 September 2020)
Ms Zita Peach
Mr Neil Broekhuizen
Dr Richard Henshaw
Mr Michael Knaap
Principle activity
The Group is a leader in the field of human fertility services and is one of the leading providers of Assisted
Reproductive Services (ARS) which is the most significant component of fertility care in Australia and Malaysia. ARS
encompass a range of techniques used to assist patients experiencing infertility to achieve a clinical pregnancy. In
addition, the Group is a significant provider of specialised women’s imaging services.
Operational and Financial Review
The Group reported NPAT of $25.5m(6), as compared to $11.8m in pcp.
$m
FY2021
FY2020
% Change
Group Revenue
EBITDA(1)
EBIT
Adjusted NPAT(1)(2) attributable to ordinary shareholders
Adjusted NPAT(1)(2)(6) including non-controlling interest
Reported NPAT attributable to ordinary shareholders
Reported NPAT(6)
EPS (cents)
DPS (cents)
Net Debt (m)(3)
Net Debt to Equity ratio (4)
Return on Equity (pa.) (5)
26.3%
56.2%
75.8%
59.4%
61.5%
114.5%
116.9%
41.3%
100.0%
$183.6
$51.3
$38.4
$22.9
$23.3
$25.1
$25.5
6.5
4.2
31 Dec 20
-$7.1
-2.7%
8.6%
$145.4
$32.8
$21.8
$14.4
$14.4
$11.7
$11.8
4.6
2.1
30 June 20
$4.2
1.7%
5.7%
(1)
(2)
(6)
EBITDA and Adjusted NPAT are non-IFRS measures
Reported NPAT is adjusted by -$2.2m. Refer to earnings reconciliation on following pages.
Debt less cash balances
(3)
(4) Net debt to equity is debt divided by equity
(5)
Return on equity is Adjusted NPAT for the twelve-month period to 30 June 2021 divided by closing equity
Attributable to ordinary shareholders and non-controlling interest
3
.25
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Directors’ Report continued
26.
Monash IVF Group Limited Directors’ Report for the year ended 30 June 2021 Operational and Financial Review (continued) Highlights: •Reported NPAT(1) of $25.5m, an increase of 116.9%•Adjusted NPAT(1)(2)(5) of $23.3m, an increase of 61.5% and ahead of profit guidance range, ($21m to$23m)•26.3% Revenue growth as result of 36.6% stimulated cycle(3) growth and 12.9% ultrasound scan growth•Strong IVF industry volumes(3) – 31.3% FY21 growth•21.0% market share(4) in FY2021 – 0.6% higher than pcp•Record Doctor Engagement NPS scores demonstrating a “culture of success”•$32.8m Free Cash Flow(5) generation - 100% conversion of EBITDA to pre-tax operating cash flows•2.1 cents per share fully franked final FY2021 dividendRevenue Group revenues increased by $38.2m or 26.3% to $183.6m compared to pcp. A summary of the increase in revenues is detailed in the waterfall chart below: •Strong revenue growth delivered in 1H21 and 2H21 as compared to FY2020 due to Industry volume andMVF market share growth;•Pent-up demand/deferred treatment created during Q4FY2020 as a result of temporary COVID-19related elective surgery suspension was more than recovered by September 2020;•Following meeting the pent-up demand/deferred treatment, revenue levels were maintained andaccelerated in 2H21 with $92.8m revenue generated in 2H21 compared to $90.8m in 1H21;•Average ARS revenue per stimulated cycle declined by 2% compared to FY2020 (having a negative$1.8m impact) as a result of ‘no out-of-pocket’ stimulated cycle remediation offers provided to patientsimpacted by the Ni-PGT-A suspension. Average price per stimulated cycle improved by 1.5% in 2H21 ascompared to 1H21 following price increases across all domestic markets except for Victoria whichincreased prices on 1 July 2021;•$1.7m revenue increase from Acquisitions from full-year impact from Fertility Solutions. Higher proportionof full-service treatments were performed as compared to pcp;•$0.8m International revenue growth notwithstanding the Kuala Lumpur clinic continuing to be impacted bymovement control orders. Stimulated cycles increased by 22% although average price declined by 11%;•$3.8m Ultrasound revenue growth as scan volumes and NIPT increased by 13% and 18% respectivelycompared to pcp.(1)Including Ordinary Shareholders and Non-controlling Interest (2)Refer to earnings reconciliation on following pages for reconciliation from reported to adjusted(3)MBS items 13200/1 (4)MVF Key Markets – Victoria, New South Wales, Queensland, South Australia and Northern Territory(5)Non-IFRS measure 4Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Expenditure before interest and tax
The table below provides a summary of FY2021 Expenditure before interest and tax compared to FY2020:
Employee benefits expense
Clinician fees
Raw materials and consumables used
IT and communications expense
Property expenses
Marketing and advertising expense
Professional and other fees
Other expenses
Total operating expenditure
% of Group revenue
Depreciation and amortisation
Total expenditure before interest and tax
% of Group revenue
FY2021
$m
FY2020
$m
%
Change
55.8
32.7
19.9
4.1
3.8
6.4
3.8
5.9
132.4
72.1%
12.9
145.3
79.1%
49.0
25.7
16.4
3.1
3.3
5.7
4.1
5.3
112.6
77.4%
11.0
123.6
85.0%
(13.9%)
(27.2%)
(21.3%)
(32.3%)
(15.2%)
(12.3%)
7.3%
(11.3%)
(17.6%)
(17.3%)
(17.6%)
Total operating expenditure represents 72.1% of total Revenue as compared to 77.4% in FY2020. The following
details key expenditure movements in FY2021 against FY2020:
•
•
•
•
Employee benefits expense increased by $6.8m or 13.9% to $55.8m. The increase is reflective of the
operating workforce required to deliver and support volume growth experienced across all clinics noting
FY2020 included impact from workforce stand down during parts of Q4FY2020 following the initial
temporary suspension of IVF services. In addition, salaries and wages includes increases in enterprise
agreements for nursing and science and the full year impact from the Fertility Solutions acquisition in
FY2020;
Clinician fees and Raw Materials/Consumables have increased commensurate with increases in IVF
volumes;
IT and communication expense increased by $1.0m or 32.3% to $4.1m due to further investment to
strengthen cyber security measures, safety of our IT infrastructure, additional IT operational support
(including telehealth) and patient communication digitisation activities. General IT operating expenditure
was also delayed in Q4FY2020 to FY2021 subject to recovery and sustainability of operating
performance;
Property expenses increased by $0.5m or 15.2% to $3.8m due primarily to deferral of maintenance
expenditure in Q4FY2020 following the suspension of IVF services;
• Marketing and advertising expense increased by $0.7m or 12.3% to $6.4m as we continue to invest in
revenue generating activities supporting growth in new patients accessing our fertility network during
FY2021 and building new patient pipeline growth into FY2022;
Professional and other fees decreased by $0.3m or 7.3% to $3.8m due to acquisition related costs
incurred in 1H20 partly offset by higher legal expenditure during FY2021;
•
• Other expenses increased by $0.6m or 11.3% to $5.9m due to a $0.7m increase to the Fertility Solutions
•
acquisition earn-out provision following strong operating performance in FY2021;
Depreciation and amortisation expense increased by $1.9m primarily due to a $0.9m increase in lease
amortisation (including $0.8m for the new Sydney CBD flagship clinic which opened in November 2020)
and $1.0m increase in asset depreciation including depreciation on the new Sydney CBD flagship clinic
and growth asset equipment depreciation.
5
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Earnings before interest, depreciation, interest and tax (EBITDA(1))
Adjusted EBITDA(1)(2) is $47.7m as compared to $34.8m in FY2020, an increase of 37.1%. The increase in
EBITDA(1)(2) is due primarily to:
•
•
•
•
Volume leverage gained from strong industry volume growth and market share growth across domestic IVF
and Ultrasound;
Sustainable investment made in marketing activities (+12.3%), new clinical infrastructure including Sydney CBD
fertility clinic and doctor attraction costs;
Continued investment in our People including scientists and nursing resources to meet demand and improve our
service offering;
EBITDA includes $1.7m expenditure for ex-gratia ‘no patient out of pocket’ Ni-PGTa patient remediation
offers and costs relating to the Ni-PGTa proceedings and claims against Monash IVF. Indemnity has been
granted by our medical malpractice insurer in relation to the proceedings.
Finance costs
$2.5m Net Finance cost, a decrease of $3.2m compared to pcp. The decline was due to a $2.6m interest reduction
from lower debt and $1.1m positive impact from closure of interest rate swaps in FY2020 partly offset by a $0.3m
increase in the unwinding of the discount on interest for lease liabilities in accordance with AASB16 Leases.
Taxation
The effective tax rate is 29.0% as compared to 27.1% in pcp. The effective tax rate reflects the 30% Australian
and 24% Malaysian corporate tax rates, a higher contribution of taxable income from Australian operations and
adjustments relating to the FY20 tax return compared to the FY20 tax provision at 30 June 2020.
Segment analysis
$m
Revenue
Adjusted EBIT(1)(2)
Reported NPAT
Australia
FY2021
172.9
30.6
22.4
Australia
FY2020 % change
27.6%
135.5
20.6
9.0
48.4%
150.0%
FY2021
10.7
4.2
3.1
International
FY2020 % change
8.1%
9.9
3.8
2.8
11.8%
11.0%
Australia revenue increased by 27.6% to $172.9m due to the following:
▪ MVF IVF Australia stimulated cycles grew by 36.6% or 2,627 cycles in FY2021 compared to FY2020;
▪
Pent up demand/deferred treatment created during Q4FY2020 following temporary suspension of IVF
services was entirely recovered during Q1FY2021. Strong underlying growth post recovery of the pent
up demand was achieved during Q2FY2021 to Q4FY2021 as a result of ARS industry volume growth
and MVF domestic market share gains;
Stimulated cycles grew in the following States and each achieved market share growth:
o Queensland +42.0% cycle growth
o Victoria +39.9% cycle growth
o New South Wales +35.9% cycle growth
o Northern Territory +62.9% cycle growth
South Australian stimulated cycles grew by 22.7% and Tasmania by 12.5% with both experiencing slight
reduction in market share;
▪
▪
(1)
(2)
EBITDA and Adjusted EBIT are non-IFRS measures
Refer to page 29 for a reconciliation of statutory to reported
28.
6
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Segment analysis (continued)
▪
▪
▪
Domestic Key Markets(3) stimulated cycle market share grew by 0.6% to 21.0% due to higher marketing
investment driving a 40% increase in new patients that accessed our IVF network, new fertility specialists
attracted to grow volumes in NSW, Queensland and Victoria, full year contribution from Fertility Solutions
and market share recovery in our Victorian IVF business;
Day Hospital revenue increased by 37.5% to $2.3m reflecting increased IVF activity in South Australia
and contribution from the new day hospital as part of the Sydney CBD fertility clinic offering;
Ultrasound scan volumes increased by 12.9% to 92,776 compared to pcp whilst non-invasive pre-natal
testing (NIPT) increased by 17.8% to 15,877.
Adjusted EBIT increased by $10.0m or 48.4% to $30.6m due primarily to volume growth as detailed above. EBIT
margin increased from 15.2% to 17.7% which includes an increase in marketing ($0.7m), doctor attraction costs,
increased occupancy and depreciation costs for the new Sydney CBD fertility clinic ($1.1m) and expenditure for
Ni-PGT-A remediation offers which includes ex-gratia patient “no out-of-pocket” costs.
International
International revenue increased by$0.8m or 8.1% to $10.7m. The International segment comprises the Kuala
Lumpur and Johor Bahru clinics which continued to be restricted by COVID-19 measures in-place to protect the
community. The Kuala Lumpur clinic was resilient in performing 1,008 stimulated cycles compared to 829 in FY2020
and 1,034 in FY2019. Whilst more than 1,000 stimulated cycles were performed, the average price per stimulated
cycle declined by 11% due to promotional and discount offerings in-light of competitive pricing pressure and
weaker economic conditions. The Johor Bahru clinic, acquired in June 2020, performed relatively low volumes due
to closure of the Singapore border to Malaysia.
International Adjusted EBIT increased by $0.4m or 11.8% due primarily to revenue movements described above.
Earnings reconciliation
The table below provides a reconciliation of FY2021 Adjusted EBIT and NPAT to the reported statutory metrics:
$m
Reported Statutory
New Sydney CBD IVF premise commissioning costs
JobKeeper Subsidy Profit Impact
Acquisition earn-out fair value adjustment
Adjusted
EBITDA
EBIT
NPAT
51.3
0.8
(5.1)
0.7
47.7
38.4
0.8
(5.1)
0.7
34.8
25.5
0.6
(3.5)
0.7
23.3
•
•
•
$0.8m pre-tax New Sydney CBD IVF clinic commissioning costs prior to opening in November 2020
including costs for AASB16 lease depreciation and interest expense ($0.5m), pre-opening operational
costs and accreditation costs;
$5.1m pre-tax impact from Job Keeper Subsidy payments received for Q1FY2021 which had been
critical to ensuring our specialised workforce was maintained and engaged;
$0.7m increase to AASB3 Business Combinations earn-out provision for increase to estimated purchase
price payments to Fertility Solutions vendors as a result of stronger than anticipated performance during
FY2021.
(3)
Key Markets include Victoria, New South Wales, Queensland, South Australia and Northern Territory
7
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Statement of Financial Position and Capital Metrics
Balance Sheet ($m)
Cash and cash equivalents
Other current assets
Current lease liabilities
Current borrowings
Other Current liabilities
Net working capital
Borrowings (excluding capitalised fees)
Goodwill & Intangibles
Right of use assets
Lease liabilities
Plant & Equipment
Other assets/liabilities
Net assets
Capital Metrics
Net Debt ($m)(1)
Leverage Ratio (Net Debt / EBITDA(2))
Interest Cover (EBITDA(2) / Interest)
Net Debt to Equity Ratio(3)
Return on Equity(4)
Return on Assets(5)
30 June 21
30 June 20
8.8
13.7
(5.8)
(1.6)
(33.7)
(18.6)
-
260.0
42.4
(38.5)
25.0
(1.4)
268.9
15.1
15.6
(2.3)
-
(35.6)
(7.2)
(19.3)
262.1
36.5
(36.3)
19.1
(2.8)
252.1
31 June 21
30 June 20
(7.1)
(0.18x)
55.7x
(2.7%)
8.6%
6.6%
4.2
0.15x
8.4x
1.7%
5.7%
4.1%
% change
(41.7%)
(12.2%)
(152.2%)
(100.0%)
5.3%
(158.3%)
100.0%
(0.8%)
16.2%
(6.1%)
30.9%
50.0%
6.7%
+/-
(11.3)
(0.33x)
47.3x
(4.3%)
2.9%
2.5%
Whilst uncertainty remains due to the on-going Pandemic, the Balance Sheet is positioned to withstand any potential
impact the Pandemic may present and is positioned to execute and capitalise on the following potential growth
opportunities (but not limited to), as illustrated in the April 2020 Equity Raising (~$7m known opportunities at the
time):
•
•
•
•
•
$4.5m new state-of-the-art Sydney CBD fertility clinic opened in November 2020;
$0.8m to date expenditure on new clinic infrastructure projects either approved and ready to commence
construction or at design stage including Melbourne, Gold Coast and Penrith;
$1.3m expenditure to date on South East Asian growth opportunities (Johor Bahru and Jakarta);
South East Asian expansion plans progressing although hampered due to COVID-19 environment in the
region;
non-organic growth opportunities – domestic and abroad.
Net debt has decreased by $11.3m to net cash positive position driven by strong cash flow generation and free
cash flow(6). Borrowings at 30 June 2021 is $1.6m as compared to $19.3m at 30 June 2020, a reduction of
$17.7m. $38.4m of debt capacity is available under the Syndicated Debt Facility which is due to mature in
January 2022. The key Net Leverage Ratio has reduced to (0.18x) which is well within the 3.5x covenant
requirement. The Interest Cover Ratio improved by 47.3x to 55.7x and well above the 3.0x covenant requirement.
In December 2020, the waiver of bank covenant testing, which was executed in April 2020, was voluntarily ceased
which allowed for the declaration of dividends going forward. Key capital metrics improved with Return on Equity
increasing from 5.7% to 8.6% and Return on Assets increasing from 4.1% to 6.6%.
(1)
(2)
(3)
(4)
(5)
Net debt is debt less cash balances
EBITDA is based on normalized EBITDA excluding AASB16 lease impact for covenant purposes as defined in the Syndicated Debt Facility Agreement. EBITDA is not an IFRS
measure
Net debt divided by equity at the balance date
NPAT for the previous 12-month period divided by closing equity at the balance date
NPAT for the previous 12-month period divided by closing assets at the balance date
30.
8
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Statement of Cash Flows
Cash Flows ($m)
EBITDA(1)
Movement in working capital
Income taxes paid
Net operating cash flows (post-tax)
Capital expenditure
Payments for businesses
Cash flows used in investing activities
Free Cash flow(1)
Proceeds from issue of shares
Dividends paid
Interest on borrowings
Payments of lease liabilities
Proceeds/(Repayment) of borrowings
Other
Cash flows used in financing activities
Net cash flow movement
Closing cash balance
Key cash flow highlights are as follows:
FY2021
51.3
-
(7.2)
44.1
(10.0)
(1.3)
(11.3)
32.8
-
(13.1)
(0.7)
(7.6)
(17.7)
-
(39.1)
(6.3)
8.8
FY2020
32.8
2.6
(4.3)
31.1
(7.5)
(3.1)
(10.6)
20.5
77.5
(7.1)
(3.5)
(7.2)
(69.7)
0.3
(9.7)
10.8
15.1
Change%
56.4%
(100%)
(67.4)
41.8%
(33.3%)
58.1%
(6.6%)
60.0%
(100%)
(84.5%)
80.0%
(5.6%)
74.6%
(100%)
(303%)
(158%)
(41.7%)
•
•
•
•
•
Pre-tax conversion of EBITDA to operating cash flow remained strong at 100% as compared to 107.9%
in the pcp;
$32.8m Free Cash Flow(1) generation, an increase of 60.0%
$25.2m operational cash flow generation(2), an increase of $11.9m compared to pcp;
$11.3m Investment activities expenditure continue to focus on future growth initiatives including:
o New Sydney CBD flagship fertility clinic completed in November 2020 and commencement of
new footprints in Melbourne and Gold Coast ($5.3m);
o $2.1m investment in new state-of-the-art laboratory assets and technology;
o $2.0m investment in IT infrastructure and capability including patient management system
enhancements;
o $0.7m Fertility Solutions earn-out payment for FY21 performance;
o $0.6m minority investment in new Jakarta clinic which opened in February.
Cash flow from Financing activities includes:
o $17.7m reduction of gross borrowings to $1.6m;
o $13.1m dividend payments includes the FY21 interim dividend and the deferred FY20 interim
dividend;
o $2.8m reduction in interest payments compared to pcp as a result of lower debt;
o 5.6% increase in lease payments for properties including the new Sydney CBD fertility clinic.
Dividends
On 24 August 2021, a fully franked final FY2021 dividend of 2.1 cents per share was declared. The record date
for the dividend is 10 September 2021 and the payment date for the dividend is 8 October 2021.
EBITDA and Free Cash Flow are non-IFRS measures
(1)
(2) Operational cash flow generation is Net Operating Cash Flow (post tax) less Cash Flow from Investing activities less Payment of Lease Liabilities
9
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Commitments & Contingencies
As announced to the ASX on 23 December 2020, Monash IVF Group became aware that it and certain of its
subsidiaries have been named as defendants in proceedings filed in the Supreme Court of Victoria in relation to,
or in connection with, the Group’s non-invasive pre-implantation genetic screening technology (Ni-PGT or cell-free
PGT-A). The proceedings filed makes a series of allegations against Monash IVF Group in relation to the Ni-PGT
testing including that patients who had embryos classified as aneuploid as a result of Ni-PGT testing may have
had embryos destroyed or did not proceed to embryo transfer. Ni-PGT testing was suspended in October 2020.
The Group has filed the defence in accordance with the Court’s directions. The Group has notified its insurers of the
claim. The Group has provided for associated costs expected to be incurred in defending the claim. The claim does
not specify an amount of damages and it is not currently possible to determine the ultimate impact of this claim, if
any, on the Group.
Outlook
We believe there is a fundamental shift in the Community whereby the on-going Pandemic has changed the mindset
of our patient cohort with greater focus on family, health and wellbeing resulting in re-direction of priorities towards
family extension. This shift has driven strong industry growth in FY2021 and is expected to be maintained in
FY2022.
The Group’s current strong balance sheet positions it well to continue to navigate through the COVID-19 Pandemic
and optimise future earnings through strategic and operational gains made during FY2021. Factors that will
support future growth includes:
•
Attraction of new fertility specialists In FY2021 will drive further volume growth in FY2022 and the Group
is well placed to attract further experienced fertility specialists;
• Opening of new clinical infrastructure in the latter part of FY2022 including new projects that are well
•
•
•
•
•
•
advanced in Melbourne, Gold Coast and Penrith;
Conversion of the current strong new patient and returning patient pipelines. 2H21 new domestic patient
registrations were 8% higher than 1H21 and 35% higher than 2H20;
Sustainable marketing investment that is expected to continue to grow the new patient pipeline;
Expansion of genetics capabilities and service offerings such as the soon to be commercialised
reproductive genetic screening kits;
Continuous improvements to pregnancy rates and patient experience;
Identify and execute on non-organic growth opportunities in Australia and abroad;
Continue expansion into South East Asia noting implementation and benefits derived from the Strategy
will not materialise for a number of years.
Subject to an adverse impact from the on-going Pandemic, the Group is confident revenue and earnings can grow
in FY2022. An update will be provided at the 2021 Annual General Meeting.
32.
10
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Business Strategies and Prospects for Future Financial Years
Monash IVF Group’s mission is to help bring life to the World by providing Best-in-Class fertility solutions to all,
including diagnostics, genetics and pathology. This is supported by our Vision to be the most admired fertility
solutions provider in the world by patients, doctors, our people and other industry stakeholders. Our Mission and
Vision will be delivered through Our Pillars as illustrated below:
Our Pillars are defined as follows below:
Patient experience - We are committed to providing best in class clinical care across the fertility and pregnancy
journey; delivering through a patient experience that is empathetic, empowering and personalised.
Doctor partnership - We will develop mutually beneficial long term partnerships with our doctors that benefits our
patients through excellence in clinical care and to drive growth in our doctors’ businesses.
Scientific leadership - Our focus in world-class research and science will deliver market leading success rates,
innovative services and attract partnership opportunities.
Clinical infrastructure – Provide high quality, fit-for-purpose infrastructure to support our best in class offering
through investing in new and existing facilities and businesses.
People engagement - Through passion, pride and capability our people are leading the way in helping bring life
to the world.
Brand & marketing – Our brand and marketing conveys our leadership in reproductive health and develops strong
brand salience through progressive, empathetic and empowering engagement with the community, patients and
our People.
Digital & systems transformation – Investing in next generation technology, platforms and systems to enhance
interactions with our patients, doctors and People. Grow and diversify revenue streams through enhanced digital
capabilities and partnerships.
International expansion - Export our expertise in fertility services to Asia and beyond through effective
partnerships.
Our Pillars will drive achievement of Our Outcomes to Engage with our Key Stakeholders, continually improve our
patient outcomes, grow our market share and create value for our Key Stakeholders including patients, doctors,
staff and shareholders.
11
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Business Strategies and Prospects for Future Financial Years (continued)
Key development in particular key Pillars during the year are noted below:
Scientific Leadership
Clinical pregnancy rates continue to improve across the Group with pregnancy rates 4.5% higher than CY2018.
Initiatives to drive future improvements include:
•
•
•
•
Publication of the first PIEZO clinical trial (a gentler form of microinjection) with continued recruitment of
the phase 2 multi-centre clinical trial across 5 Monash IVF sites
Sperm selection device development (Felix) in partnership with Memphasys (ASX:MEM) progressing and
on track for phase 1 clinical trial
A continued focus on Research and Development with the submission and presentation of 21
scientific/clinical abstracts at national and international conferences
Transition of Monash IVF Group genetic laboratories to G-Category status to enable best-in-class
Preimplantation Genetic Screening.
Doctor Partnerships
•
•
•
•
Partnership and relationships with Monash IVF fertility specialists and Women’s Ultrasound sonologists
have never been stronger with recent engagement scores at record levels demonstrating a “culture of
success”
Five new experienced Fertility Specialists joined Monash IVF to deliver future growth and succession
planning;
Four new Fertility Specialists credentialled following completion of the Monash IVF training program and
now fully integrated, treating patients and building solid patient pipelines;
Broadening Genetics Suite of Services - Acquisition of the only domestic genomic pathologist with a dual
FRCPA and FRANZCOG as Monash IVF’s Medical Director of Genetics who will lead our next generation
genetics services.
Clinical Infrastructure
•
•
•
•
•
•
New clinical infrastructure is paramount to execution of our strategic growth objectives;
New Sydney CBD flagship clinic opened in November representing best practice patient experience with
four Fertility Specialists now based at the new Clinic including three new experienced CREI qualified
Fertility subspecialists;
Since commencement, the new Sydney CBD clinic has performed more than 200 stimulated cycles and will
improve earnings during FY22;
Transformation of Melbourne footprint is well advanced with new fertility clinic and day hospital expected
to open in Cremorne towards the end of FY22;
New Gold Coast, Penrith and Darwin fertility clinics expected to open towards the end of FY22;
New Gold Coast day hospital expected to open towards the end of FY22.
People Engagement
•
•
•
•
Positive Engagement scores in key stakeholder groups driving activity and a “culture of success”
Record Group engagement score in 2021, with an increase of 4% points compared to FY20 and
exceeded the Vision 2022 target and industry benchmark;
The Employer Value proposition has been a key priority, and we continue to position ourselves as a
dynamic industry leader in reproductive care and how we offer dynamic workplaces for those driven to
make a difference.
Transforming our people & culture through exceptional employee experiences and ways of working,
continues to be at the heart of our people strategy.
34.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Business Strategies and Prospects for Future Financial Years (continued)
Marketing
• Marketing investment is a key driver of our market share gains and a 40% increase in new patient
stimulated cycles;
• Over the last 12 months the new brand was launched, with targeted advertising and comprehensive events
strategy and website upgrades;
• Our GP engagement strategy has continued to drive strong GP referrals and engagement.
Business risks
The Monash IVF Group continually considers the benefits of implementing a risk management framework, all of
which contributes to the increased likelihood that the Group will be able to achieve its organisational objectives.
Accordingly, the Group has a risk management framework and has implemented systematic processes for:
▪
▪
▪
Better identification of opportunities and threats;
Prevention of potential risks from being realised;
Reduction of the element of chance;
Increased accountability and transparency for decisions;
▪
▪ More effective allocation and use of resources;
▪
Improved incident management and reduction in loss and the cost of risk;
▪
▪
▪
▪
Improved stakeholder confidence and trust;
Improved compliance with relevant legislation and accreditation processes;
Proactive rather than reactive management; and
Enhanced governance.
The risk management framework together with the risk assessments and mitigation strategies are regularly
reviewed both individually and collectively by the Executive Team, the Audit and Risk Committee and the Board.
A simple prioritisation system has been adopted to scale the relative importance of all the identified risks. From
review of the Group’s key business, operational and financial risks, processes are in-place to reduce the inherent
nature of these risks to an acceptable and manageable level. This includes high inherent risk presented by the
COVID-19 Pandemic and is a key priority when managing risk. The Group considers the below as important risks
that require continued management to ensure the Group meets its objectives.
COVID-19 Pandemic
COVID-19 and the risk of transmission of infection may impact Monash IVF’s operations in Australia and South East
Asia through the imposition of government and regulatory requirements (which can change over time), including
suspension of elective surgery, recommendations to postpone treatment where possible and the need for social
distancing impacting staff movement within the partner healthcare system and patient willingness to access services.
Monash IVF is continually working with industry bodies, regulator and governments to understand and shape
regulatory positions but these positions and related actions can impact Monash IVF operations in the future.
Economic conditions during and post the Pandemic may adversely impact financial performance and market
position. In addition, Monash IVF employees may come into close proximity with patients and other members of
the public during the course of business, increasing risk of transmission and impact on workforce. While protocols
have been established and are effective in responding to the risk of transmission, the workforce may be infected
with COVID-19 resulting in disruption of operations and services whilst they are isolating and/or recovering.
13
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Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Business risks (continued)
Relationships with staff in key roles, including clinicians
The relationships between Monash IVF Group, the staff and clinicians are key to our recruitment and retention
strategies, ability to grow the businesses and replacement of retiring clinicians. The loss or disengagement of
clinicians or inability to attract new clinicians to the organisation would likely impact the revenue and profitability
of the organisation.
There are similar risks to the organisation relating to the departure or disengagement of the Executive and
Leadership Teams and staff in key roles, defined by regulatory requirements. Comprehensive training and
development programs, competitive remuneration frameworks, commitment to patient centred care and
opportunities to participate in world class research activities all contribute to attracting and retaining the very best
talent in the industry.
Change in Government funding arrangements for Assisted Reproductive Services
There is a risk that the Commonwealth Government will change the funding (including levels, conditions or eligibility
requirements) it provides for Assisted Reproductive Services (ARS). Patients receive partial re-imbursement for ARS
treatment through Commonwealth Government Programs, including the Medicare Benefit Schedule (MBS) and
Extended Medicare Safety Net (EMSN). If the level of re-imbursement were to be reduced or capped, patients
would face higher out-of-pocket expenses for ARS potentially reducing the demand for services provided by the
Group. The Group is not aware of any changes to Commonwealth Government funding for ARS in the short to
medium term.
Risk of increased competition
In each of the markets the Group operates in, there is a risk that:
▪
Existing competitors may undertake aggressive marketing campaigns, product innovation or price
discounting;
▪ New market entrants may participate in the Sector and gain market share;
▪
Further growth in low cost offerings provided by competitors may reduce the Group’s market share; and
▪
An increase in publicly provided ARS services may reduce the Group’s market share.
The Group continues to strategically position the ARS service as a specialised premium offering as a point of
differentiation against low cost competitors. In addition, the Group has previously partnered with State based
governments in the provision of publicly provided ARS services and will look to continue to partner with governments
to provide greater access to ARS services to the community.
Occupational Health and Safety
Monash IVF employees are at risk of workplace accidents and incidents. In the event that a Monash IVF employee
is injured in the course of their employment, Monash IVF may be liable for penalties or damages. This has the
potential to harm both the reputation and financial performance of Monash IVF.
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Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Information on Directors
Director
Mr Richard Davis
Independent Chairman
Member of Audit & Risk Management
Committee
Member of Remuneration & Nomination
Committee
Experience
Mr. Richard Davis joined the Group in June 2014 and is currently
serving as a non-executive director of ASX listed companies, InvoCare
Limited and Australian Vintage Limited (Chairman).
Richard worked for InvoCare for 20 years until 2008. For the
majority of that time he held the position of CEO and managed the
growth of that business through a number of ownership changes and
over 20 acquisitions, including offshore in Singapore.
Prior to InvoCare Limited, Richard worked as an accounting partner
of Bird Cameron. Richard holds a Bachelor of Economics from the
University of Sydney.
Mr Josef Czyzewski
Independent
Non-executive Director
Chair of Audit & Risk Management
Committee
Member of Remuneration & Nomination
Committee
Mr. Josef Czyzewski joined the Group in June 2014 and has over 30
years of experience in senior finance positions and significant
experience in the health industry. Josef has held the positions of CFO
at Healthscope Limited, and more recently CFO/General Manager
Strategy and Development at Spotless Group Limited following its
takeover by private equity interests in 2012.
Mr Neil Broekhuizen
Independent
Non-executive Director
Member of Audit & Risk Management
Committee
Prior to that time, Josef had held various senior finance positions with
BHP Billiton including VP Finance and Corporate Treasurer. He holds
a Bachelor of Commerce from the University of Newcastle and is a
Graduate Member of the Australian Institute of Company Directors.
Mr. Neil Broekhuizen is the Joint Chief Executive Officer of Ironbridge.
Neil has over 30 years experience in the finance industry, including
28 years in private equity with Investcorp and Bridgepoint in Europe
and Ironbridge in Australia. He has sat on the Ironbridge Investment
Committee since inception.
He is the Independent Non-executive Chairman of Bravura Solutions.
Neil is qualified as a Chartered Accountant and holds a BSC (Eng)
Honours degree from Imperial College, University of London.
15
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Directors’ Report continued
Directors’ Report
for the year ended 30 June 2021
Director
Ms Catherine West
Independent
Non-executive Director
Member of Remuneration & Nomination
Committee
Appointed 8 September 2020
Experience
Ms Catherine West was appointed Non-executive Director to Monash
IVF Group on 8 September 2020. She is an experienced ASX listed
non-executive director and has over 25 years of legal, business
affairs and strategy experience in customer focused businesses in the
media, entertainment, telecommunications and medical sectors in
Australia, the UK and Europe.
Catherine is a non-executive director of ASX listed Nine Entertainment
where she is Chair of the People and Remuneration Committee and a
member of the Audit and Risk Committee. Catherine is also a non-
executive director of the Endeavour Group and Peter Warren
Automotive Group. In addition, she is Vice-President of the Sydney
Breast Cancer Foundation at Chris O’Brian Lifehouse, a director of the
NIDA Foundation, National Institute of Dramatic Art and a Governor
of Wenona School. She was previously on the board of Southern
Phone, a reginal telecommunications company, before its successful
sale to AGL. Catherine is also a consultant to the healthcare sector
and to media companies internationally.
Catherine holds a Bachelor of Laws (Hons) and a Bachelor of
Economics from the University of Sydney. She is also a Graduate
Member of the Australian Institute of Company Directors.
Ms Zita Peach
Independent
Non-executive Director
Chair of Remuneration & Nomination
Committee effective 1 July 2020
Ms Zita Peach has more than 25 years of commercial experience in
the pharmaceutical, biotechnology, medical devices and health
services industries, and has worked for major industry players such as
CSL Limited and Merck Sharp & Dohme, the Australian subsidiary of
Merck Inc.
Zita’s most recent executive position is Managing Director for Australia
and New Zealand and Executive Vice President, South Asia Pacific for
Fresenius Kabi, a leading provider of pharmaceutical products and
medical devices to hospitals. Previously, Zita was Vice President,
Business Development, for CSL Limited, a position she held for ten
years.
Ms Peach is Chair of Pacific Smiles Group Limited and Non-Executive
Director of ASX-listed Starpharma Holdings Limited and Visioneering
Technologies, Inc. Zita is also a member of the Hudson Institute of
Medical Research Board. Ms Peach is a Fellow of the Australian
Institute of Company Directors and a Fellow of the Australian
Marketing Institute.
Dr Richard Henshaw
Executive Director
Dr Richard Henshaw MD FRANZCOG FRCOG has practiced in the
field of reproductive medicine since 1995.
Richard works as a Fertility Specialist for the Group.
Richard has served on many national bodies, including RANZCOG
Council, the IVF Medical Directors Group of Australia and New
Zealand, and the Reproductive Technology Accreditation Committee.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Directors’ Report continued
Directors’ Report
for the year ended 30 June 2021
Director
Mr Michael Knaap
Chief Executive Officer
Managing Director
Experience
Mr Michael Knaap was appointed to the role of Chief Executive
Officer and Managing Director for Monash IVF Group on 15 April
2019.
Following his tenure as MVF Group’s Chief Financial Officer and
Company Secretary since August 2015, Michael was appointed to
Interim CEO in October 2018.
Mr Knaap has nearly 20 years experience in executive positions with
a strong operational, strategic and leadership background. Prior to
joining MVF Group, Michael was with Patties Foods Limited where he
held a number of executive positions over six years, including the role
of Chief Financial Officer and Company Secretary.
He holds a Bachelor of Accounting from Monash University and is a
Certified Practicing Accountant.
Company Secretary
Mr Malik Jainudeen was appointed to the role of Monash IVF Group Chief Financial Officer and Company
Secretary on 15 April 2019.
Malik joined Monash IVF Group in 2014 as a senior finance leader and has continued to progress his career with
Monash IVF Group. Malik has more than 17 years experience in the finance sector including 10 years at KPMG
as a Manager in Audit and Assurance where his client portfolio included ASX listed organisations Origin Energy
Limited, AusNet Services and Dulux Group Limited. Malik was also the External Audit Manager for the Monash IVF
Group for 6 years prior to its listing on the ASX in 2014.
Director Meetings
The number of directors’ meetings and number of meetings attended by each of the directors of the Company
during the financial year are:
Member
Mr Richard Davis (Chair)
Mr Josef Czyzewski
Ms Catherine West
Ms Zita Peach
Mr Neil Broekhuizen
Dr Richard Henshaw
Mr. Michael Knaap
Committee meetings
Member
Mr Richard Davis
Mr Josef Czyzewski (ARC Chair)
Ms Zita Peach (REM Chair)
Ms Catherine West
Mr Neil Broekhuizen
Attended
16
16
14
16
16
16
16
Eligible to Attend
16
16
14
16
16
16
16
ARC
REM
Attended
5
5
-
-
5
Held
5
5
-
-
5
Attended
5
5
5
3
-
Held
5
5
5
3
-
17
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Monash IVF Group Limited
Remuneration Report (Audited)
Remuneration Report (Audited)
for the year ended 30 June 2021
For the year ended 30 June 2021
The Company’s Directors present the 2021 Remuneration Report prepared in accordance with Section 300A of the
Corporations Act 2001, for the Company and the Group for the year ending 30 June 2021 (“FY21”). The
information provided in this Remuneration Report has been audited by KPMG as required by Section 308(3C) of
the Corporations Act 2001. The Remuneration Report forms part of the Directors’ Report.
The Remuneration Report outlines the remuneration strategies and arrangements for the Key Management
Personnel (KMP) who have authority and responsibility for planning, directing and controlling the activities of
Monash IVF Group.
Executive Summary
As a leader and at the forefront of advancements in the field of human fertility services including Assisted
Reproductive Services, our business decisions are made in this context. Our approach to remuneration reflects the
focus on outcomes that support the long-term sustainability of Monash IVF Group, value creation for Monash IVF
Group’s key stakeholders, attraction and retention of our people and ultimately, helping our patients start or grow
their family.
The structure of Executive Remuneration is underpinned by key principles including alignment of remuneration to
business strategy and priorities, is market competitive, rewards performance, is simple and transparent and is
effectively governed through the Remuneration and Nomination Committee.
Following the initial uncertainty from the Pandemic during March and April 2020 which saw IVF services temporarily
suspended across Australia, Monash IVF Group has emerged stronger, demonstrating profitable growth in FY2021
and is in a position to execute both organic and non-organic growth in the short and long-term. Throughout the on-
going Pandemic, the Monash IVF Group workforce has adapted to the constantly changing operating environment
including lockdown of cities but have worked tirelessly to ensure Monash IVF Group patients continue to be provided
with empathetic and high quality care in a manner that is safe and protects its patients, people and clinicians.
In FY21, the Group achieved profit growth of 61.5% (before certain non-regular items as noted on ppaaggee 2299)) as
compared to FY20. Profitable growth was achieved through industry volume growth and Monash IVF Group
market share growth. In assessing performance and remuneration outcomes for FY21, the Board considered the
speed of recovery from the initial temporary elective surgery suspension in March and April 2020 and the
sustainability of future financial and operational outcomes.
In summary, the following remuneration outcomes occurred in FY2021:
•
•
•
•
•
As noted in the FY2020 Remuneration Report, increases to KMP fixed remuneration including other
Executives were placed on hold for review on 1 January 2021. Following this review, the CEO, CFO and
COO received a 5% increase to total fixed renumeration effective 1 January 2021;
As noted in the FY2020 Remuneration Report, the Board has considered and has paid a Special Bonus
payment of 5% of TFR to certain KMP and Other Executives following the strong and fast market share
recovery and growth experienced in the three months following the recommencement of IVF services in
May 2020. No further STI was paid for the positive market share growth outcomes achieved between
August 2020 to June 2021;
In FY21, maximum short-term incentive available for the CFO has increased from 30% of TFR to 40%.
The reason for the increase is to adjust maximum at risk remuneration which remains below peer
comparators;
Following performance during FY2021, Short-term incentive (STI) payments will be made to the CEO, CFO
and COO whereby financial targets were out-performed (70% of STI) and some non-financial metrics
were met (16.3% - 18.6%);
Long-term incentive (LTI) payments for performance rights issued in FY2019 to the CEO are not expected
to vest due to operational performance and capital management changes during the testing period.
Effective 1 July 2021, maximum remuneration (fixed and at risk remuneration combined) for Key Management
Personnel was adjusted following completion of a benchmarking process to comparable peers. The Board entered
into the external benchmarking process to be informed on Executive remuneration at the time. This benchmark
considered organisations of comparable size and supported an outcome that total remuneration sat below the
industry benchmark (including roles and performance metrics). As of 1 July 2021, the Board agreed to increase
the total remuneration for the CEO, CFO and COO to bring these closer to comparable peers. This adjustment
40.
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Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
Executive Summary (continued)
included a fixed remuneration adjustment of approximately 10%. CEO, CFO and COO maximum total
remuneration including “at-risk” remuneration, based on financial and non-financial targets included an adjustment
of 20%, 20% and 27.7% respectively.
The CEO’s 3-year remuneration CAGR is 4.9% for fixed remuneration and 8.0% for total maximum remuneration.
The adjustments to the CEO, CFO and COO maximum remuneration now sit at or below the industry benchmark
and supports internal promotions whilst ensuring KMP are retained and appropriately incentivised to continue to
deliver the Vision 2026 business strategy.
Director and Key Management Personnel (KMP) changes in FY21
Effective 8 September 2020, Monash IVF Group welcomed the appointment of Ms Catherine West as Independent
Non-Executive Director. In FY21 Catherine was also appointed as a member of Remuneration and Nomination
Committee. No further changes were made to the Director or Executive structure in FY21.
Non-Executive Director remuneration arrangements in FY2021
As noted in last year’s report, fees payable to Non-Executive Directors were reviewed regarding fee adjustments
effective 1 July 2020 and no adjustments to Director base or Committee fees were made during FY21. Following
a review of Director and Committee fees it is noted that a 2% increase will be applied in FY22. This increase is
inclusive of the 0.5% increase to Superannuation Contribution effective 1 July 2021 where applicable.
1.0 Remuneration Snapshot
1.1 Remuneration Governance
The Board is responsible for the oversight and decision making relating to all remuneration decisions. The
Remuneration and Nomination Committee (Committee) enables the board to discharge their governance
responsibilities in all matters relating to remuneration and engagement of all Executive and Non-Executive. Under
the Remuneration and Nomination Committee Charter, the Committee must have at least three members, the
majority of whom (including the Chair) must be independent Directors and all of whom must be non-executive
Directors.
The Committee is composed of four independent Directors. Ms Zita Peach was appointed to Chair of the Committee
on 23 June 2020. Mr Richard Davis, Mr Josef Czyzewski and Ms Catherine West are also members of the
Committee.
During FY21, the Remuneration and Nomination Committee met four times with full attendance by all members.
The Remuneration and Nomination Committee at times invites the CEO, CFO/Company Secretary, Chief People &
Culture Officer and other non-executive directors (non-member of the Committee) to attend Committee meetings
to assist in deliberations (excluding matters relating to their own employment). From time to time, the Remuneration
and Nomination Committee seeks independent external advice on the appropriateness of the remuneration
framework and remuneration arrangements. No recommendations as defined in section 9B of the Corporations
Act were received in FY21.
The Committee is responsible for reviewing and making recommendations to the Board in relation to:
• Group remuneration principles, strategy and practices;
• Non-executive director fee frameworks, policy regarding fee allocation, and fee pools sufficient for
•
appropriate fee levels, Board renewal, Board roles, market practice, and director workload;
Appointment of new directors, review of Board and Board committee membership and performance,
Managing Director succession planning and the appointment of other Executives;
• Overall remuneration framework for Executives;
•
Terms and conditions underpinning Executive & Doctor Service Agreements (ESA), including restraint and
notice period;
Eligibility for, and conditions of, incentive plans, including equity-based incentive plans;
Remuneration packages for all Senior Executives including structure and incentives;
•
•
19
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
1.0 Remuneration Snapshot (continued)
• Metrics and associated targets for Incentive plans;
•
•
Terms and conditions associated with incentive plans including equity plan rules, escrow and other
restrictions on disposal;
Structure and quantum of Senior Executive termination payments;
Treatment of outstanding incentives in case of cessation of employment;
Exercise of malus or clawback if relevant to incentive plan payments.
The Remuneration and Nomination Committee are also responsible for monitoring and reporting to the Board:
•
•
•
Remuneration relative to industry benchmarks;
Achievement of performance requirements for the payment of incentives;
Diversity, inclusion objectives and pay equity.
the Company’s website
The Remuneration and Nomination Committee Charter
at https://www.monashivfgroup.com.au/investor-centre/corporate-governance/
reviewed
is
annually and was last reviewed in June 2021. Further information on the Remuneration and Nomination
Committee is provided in the Corporate Governance Statement in this Annual Report.
is available on
The Charter
1.2 Principles of Remuneration Framework
The following summarises the key principles which underpin the structure of Executive Remuneration arrangements
across the Group.
Principle
Design and operational implications of Remuneration Framework
Remuneration Principles
Aligned to organisations
strategy and business
priorities
Market Competitive
Rewards Performance
Simple and Transparent
Effective Governance
▪
Remuneration framework will ensure alignment with the overall business
strategy and ensure all policies and processes are observed to enable
the attraction and retention of key personnel who create value for
shareholders.
▪ Operates in support of Our Principles and aligns to the
organisations desired culture
Ensure employees including KMP and executive management are
rewarded fairly and competitively according to role accountability,
market positioning, skills, experience and performance.
Remuneration decisions will be informed by utilising relevant market
benchmarking
Encompass long term and short term variable performance
elements for those who have the ability to impact overall
organisation performance
Short term and long-term remuneration incentives and outcomes
Performance targets to be met for payment (at threshold or
target) are set after considering previous performance, forecast
and budget
A simple, flexible, consistent and scalable remuneration
framework is to be used across the organisation allowing for
sustainable business growth
The structure must be easily communicated and can reinforce the
organisations mission, principles and culture
The Remuneration and Nomination Committee and Board will ensure that
remuneration outcomes reflect both risk and performance and is
reviewed regularly to ensure employees act ethically and responsibly
Comply with all relevant legal and regulatory provisions
▪
▪
▪
▪
▪
▪
▪
▪
▪
42.
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Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
2.0 Remuneration Structure
2.1 Executive Remuneration Structure
The Group combines Total Fixed Remuneration, Short and Long term incentives to form an overall Total
Remuneration position. This structure is designed to consider market positioning and benchmarking which is intended
to attract and retain people, reward individual and company performance aligned to the execution of strategy
and drive sustainable high performance over the short and long term.
The Board reviews the structure and effectiveness of the remuneration arrangements annually to ensure their
alignment to business performance and strategy.
Purpose of each remuneration component
Total Fixed Remuneration
(TFR)
Short Term Incentive
(At Risk)
Long-Term Incentive
(At Risk)
To attract and retain, paying
competitively, reflecting the individuals
accountability, position requirements
and experience. TFR is determined as
base salary and inclusive of all
standard leave provisions and
superannuation guaranteed
contributions.
Rewards performance for achieving
stretch targets and further rewards the
achievement of both financial and
non-financial goals.
Achievement is measured using an
annual balanced scorecard of
measures aligned to the organisations
strategic vision and objectives.
Rewards and retains key contributors
by creating alignment with long term
shareholder interests and reward the
creation of sustainable shareholder
wealth.
The Group’s remuneration framework for FY21 for the CEO, CFO and COO continued to retain these three
components, with short-term incentives and long-term incentives at risk. In FY21, the CEO and CFO TFR sat below
the average of similar organisations whilst the COO TFR was at the median for similar organisations. The
remuneration structure aligns the remuneration opportunity with the level of position accountability.
2.2 Executive Remuneration Structure for FY21
The diagram below summarises the framework for FY21. The framework continues to be reviewed each year.
Performance Driven
Alignment with Shareholder
Interests
Market Competitive
Remuneration
Total Available Remuneration
Total Fixed Remuneration (TFR)
At Risk Remuneration
TFR is determined on the basis of
market rates (where applicable,
the size and complexity of the role
and the individual’s skill and
experience relative to position
requirements).
TFR Comprises of:
• Cash salary
• Salary sacrifice items
• Employer superannuation
contributions in line with
statutory regulations
TFR levels are reviewed annually by
the Committee through a process
that considers market rates and
individual
the
experience
position. TFR is also reviewed on
promotion.
There are no guaranteed increases
in executive remuneration.
in
Short Term Incentive (STI)
• Balanced Scorecard Model
that includes a Non-Financial
Gateway (ANZARD Success
Rate Average)
• 70% financial Measure based
on EPS performance
• Non-financial Measures (30%)
are linked to key strategic
initiatives built around a
balanced scorecard including
but not limited to:
•
•
•
•
Engagement (People,
Patient, Doctor)
Market Share growth
Scientific Success Rates
Doctor attraction
Long Term Incentive Plan (LTI)
• EPS growth hurdles based on
predefined growth rates over a 3
year period (70%)
• TSR hurdles based on Group’s
relative TSR performance against
ASX300 Healthcare Index (30%)
• Comprise performance rights
which vest in accordance with 3
year EPS growth and relative TSR
above threshold performance
requirements.
21
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
3.0 At Risk Remuneration Framework
The following table summarises the short term incentive and long term incentive reward components for certain KMP
including the performance measures and delivery mechanism applicable for the performance period ended 30
June 2021.
Short Term Incentive
(at risk)
Long Term Incentive
(at risk)
Incentive Opportunity
Threshold
Target
Threshold
Target
Short and Long – Term Incentive opportunities are expressed as a percentage of TFR
CEO
CFO
COO
Performance Measures
30%
30%
30%
100%
100%
100%
20%
20%
20%
100%
100%
100%
•
•
•
LTI KPIs are earnings per share growth
(EPS)(70%) and Total Shareholder
Return (TSR)(30%)
TSR measures returns made against the
performance of a comparator group
with hurdles based on predefined
growth rates over a 3-year period
EPS compound annual growth rate
(CAGR) provides a tangible measure
of shareholder value with hurdles
based on predefined growth rates
over a 3-year period
•
•
•
•
•
STI scorecard KPIs include financial
and non-financial measures
A non-financial gateway is in-place
whereby no STI is payable if the
Group’s clinical pregnancy rates
(success rates) is below the ANZARD
average
70% of STI is based on the Earnings
per Share (EPS) financial measure.
EPS may be adjusted for certain
individual significant, non-regular,
abnormal or unusual gains or losses
30% of STI is based on qualitative
non-financial measures which include
patient engagement, people
engagement, doctor engagement,
scientific success rates and domestic
market share
Pro-rata payment of STI is made if
achievement is between threshold and
target
Delivery Mechanisms
STI awards for the CEO, CFO and COO are
paid as cash and subject to continued
employment
LTI awards are granted as performance
rights, are subject to testing against the
above performance measures and continued
employment. The CEO, CFO and COO were
not required to pay any money to be
granted performance rights
3.1 FY21 Special Business Recovery Short Term Incentive
As noted in the FY2020 Remuneration Report, the Board indicated that the Executives have been and continue to
focus on planning and execution for recovery of the Business following the Federal Government’s initial Pandemic
response in March and April 2020 whereby elective surgery including IVF treatments were temporarily suspended.
The Board offered the Executives a special bonus of 5% of TFR available should market share targets be met over
the period from May to July 2020. The market share target was set at 1% above the pre-COVID Key Markets
market share (VIC, NSW, SA, NT, QLD) average between the period from October 2019 to March 2020.
Following performance in the period between May and July 2020, the Group’s Key Markets market share
increased by greater than 1% compared to the period October 2019 to March 2020, and accordingly, the
Executives achieved the special business recovery bonus of 5% of TFR available.
Following the special bonus STI payment, a stretch market share target was offered for the period August
2020 to June 2021. The detail and outcome of this market share target is detailed on page 45.
44.
22
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
3.2 FY21 Short Term Incentive
A non-financial gateway is in-place whereby no STI is payable if the Group’s clinical pregnancy rates (success
rates) is below the ANZARD average for the period 1 July 2020 to 31 March 2021. This period is applicable
due to the availability of pregnancy outcomes information at the time of reporting. The available ANZARD
target average applicable is 38.13%. The Group’s clinical pregnancy rates for the period between July 2020
to March 2021was 42.3% and accordingly, the non-financial gateway was achieved.
The quantitative financial measure defined for the CEO, CFO and COO in FY21 was as follows:
Strategic Objective
Weighting Measure
FY21 Outcome
Earnings per Share
(EPS)
70%
EPS is considered the most relevant
financial measure to further align variable
incentives to shareholder value. EPS
Target was set at FY21 Group Budget
(4.8 cents per share normalised) and
threshold set at 93.75% (4.5 cents per
share normalised) of FY21 Group Budget.
The FY21 Group Budget includes minority
interest and excludes Job Keeper Subsidy
impact and adjustment to acquisition earn-
out provisions.
Normalised EPS achieved was
6.0 cents per share and was
above the 4.8 cents per share
target as a result of
operating performance.
Accordingly, payout for the
EPS measure was 100%.
STI Non – Financial
The qualitative non-financial measures defined for KMP in FY21 included the following:
Strategic Objective
Weighting Measure
FY21 Outcome
Patient Engagement
5% (CEO,
CFO, COO)
Deliver an ongoing improvement in Patient
Engagement as measured by the patient
Net Promoter Score (NPS) Survey
targeting engagement improvements.
Patient Engagement NPS was measured in
the IVF and Ultrasound businesses
separately.
Patient Engagement NPS
achieved for the IVF business
was above stretch target by
+1. Payout for the Patient
Engagement measure was
100%. The Patient
Engagement NPS achieved
for the Ultrasound business
was +4 above threshold and
therefore was between
threshold and target. Payout
for the Ultrasound Patient
Engagement measure was
53.3%.
People Engagement
5% (CEO,
CFO, COO)
To foster a culture of Engagement with all
Monash IVF Group employees as
measured by annual employee Net
Promoter Score (NPS) Survey targeting
engagement improvements.
Employee Engagement
Percentage achieved 1%
above stretch target. Payout
for the People Engagement
measure was 100%.
23
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
3.0 At Risk Remuneration Framework (continued)
Strategic Objective
Weighting Measure
FY21 Outcome
Doctor Engagement
5% (CEO,
CFO, COO)
Foster a culture of engagement with all
Monash IVF Group Clinicians. This is
measured by a clinician Net Promoter
Score (NPS) Survey targeting
engagement improvements.
Doctor engagement
Percentage achieved was 1%
above threshold target and
therefore payout for Doctor
Engagement was 44%.
Scientific Success Rates
Domestic Market
Growth
7.5% (CEO,
CFO)
5% (COO)
7.5% (CEO,
CFO)
5% (COO)
Dr. Acquisition (COO
only)
5% (COO
only)
Deliver a focused improvement in clinical
pregnancy success rates above ANZARD
and improvement above previous year.
Clinical Success Rate target was set at
42.4% and threshold set at 41.55%. The
period subject to testing is July 2020 to
March 2021. Target set is compared to
40% in FY2020.
Market share growth in all IVF Key
markets. Market Share target was set at
24.4% for the period from August 2020
to June 2021 compared to 21.7% in the
period from May to July 2020 whereby
the special market share bonus was paid.
This also compared to 20.4% during
FY20. Refer to ppaaggee 4444 for further
information on the special bonus.
Threshold was set at 23.3%.
Increased fertility specialists nationally
through acquisition of new doctors and
conversion of trainee doctors to fully
contracted to support succession planning
and growth.
Clinical Success Rates
achieved was 0.1% below
stretch target. Payout is
calculated between threshold
and stretch target for Clinical
Success Rates at 91.8%.
Market share for the period
from August 2020 to June
2021 was below threshold
and stretch target. Payout for
the Market Share measure
was 0%. Notwithstanding the
STI target was not met, actual
market share was above
FY2020 by 0.6%.
Targets set for Dr acquisitions
in FY21 were not met. Payout
for Dr acquisitions was 0%.
3.3 FY21 Long-term Incentive grant
The LTI plan is a performance rights plan with vesting rights dependent upon the satisfaction of pre-determined
performance hurdles and continuous employment. LTI grants are made on a rolling annual basis to ensure Executives
maintain a continuous focus on sustainable long-term growth and returns and provides an appropriate balance
with short-term incentives which are focussed on annual returns.
The terms and overview of the FY2021 LTI grant to KMP and other eligible employees, including the CEO, CFO
and COO are summarised below.
46.
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Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
3.0 At Risk Remuneration Framework (continued)
The LTI award opportunity is based on a percentage of the participant’s total fixed remuneration as at the grant
date. The number of performance rights issued is determined by dividing the long-term incentive component of the
participant’s fixed remuneration by the volume weighted average price of Monash IVF Group Limited shares
traded on the Australian Stock Exchange over the 10 trading days immediately following the release of the
FY2020 full-year results announcement. The grant price for the 2021 grant was therefore $0.628.
Performance rights were granted in two tranches during FY2021, with each tranche subject to separate vesting
conditions. Executives did not pay any money to be granted the performance rights and the expiry date of the
rights will be on the fifth anniversary of their grant.
Details of the FY2021 LTI grant to KMP is set out below:
KMP
% of TFR
Performance
Rights granted
Allocation
# of performance
rights
Mr. Michael Knaap (CEO)
60%
Mr. Malik Jainudeen (CFO)
25%
Mr. Hamish Hamilton (COO)
25%
EPS
TSR
EPS
TSR
EPS
TSR
70%
30%
70%
30%
70%
30%
351,140
150,489
83,604
35,831
83,604
35,831
25
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
3.0 At Risk Remuneration Framework (continued)
The performance periods and vesting schedules for the FY2021 performance rights are set out in the following
table:
Performance Measure
Earnings per share
Performance Period
1 July 2020 to 30 June 2023
Performance
% of rights that will vest
Less than 10% per annum
10% per annum
0%
20%
Between 10% to 12% per annum
20% to 100% pro rata
Greater than 10% per annum
100%
Performance Measure
Relative TSR
Performance Period
11 days after FY2020 results announcement to 11 days after FY2023
results announcement
Performance
% of rights that will vest
Less than Index return
Equal to index return
0%
20%
Between Index return and Index
return +5%
20% to 100% pro rata
Equal to or greater than Index
return +5%
100%
The graduated vesting scale in the LTI plan was designed to minimise the likelihood of excessive risk taking as a
performance threshold is approached. The Board believes this vesting framework strengthens the performance link
over the long-term and accordingly encourages executives to focus on long-term performance. The Board also
acknowledges that the value of certain strategic initiatives may take several years to deliver.
Further terms and conditions of the LTI plan are as follows:
•
•
•
The invitations issued to eligible persons will include information such as award conditions and, upon
acceptance of an invitation, the Board will grant awards in the name of the eligible person. Awards may
not be transferred, assigned or otherwise dealt with except with the approval of the Board.
Awards will only vest where the conditions advised to the participant by the Board have been satisfied.
An unvested award will lapse in a number of circumstances, including where conditions are not satisfied
within the relevant time period, or in the opinion of the Board, a participant has committed an act of fraud
or misconduct or gross dereliction of duty. If a participant’s engagement with the Company (or one of its
subsidiaries) terminates before an award has vested, the Board may determine the extent to which the
unvested awards that have not lapsed will become vested awards or, if the award offer does not so
provide and the Board does not decide otherwise, the unvested awards will automatically lapse.
Awards are subject to malus and clawback conditions whereby the Board may, in its discretion, and subject
to applicable laws, determine the performance rights or shares already allocated following the vesting
or exercise of a performance right are forfeited, recovered or the conditions modified. The Board’s
decision in regards to unfair benefits obtained by the participant is final and binding.
48.
26
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
3.0 At Risk Remuneration Framework (continued)
• Where there is a takeover bid or a scheme of arrangement proposed in relation to the Company, the
Board may determine that the participant’s unvested awards will become vested awards. In such
circumstances, the Board shall promptly notify each participant in writing that the awards have become
vested awards, or that he or she may, within the time period specified in the notice and where applicable
in accordance with the class or category of award, exercise such vested awards. A participant is not
entitled to participate, in their capacity as holder of awards, in any new issue of shares in the Company,
nor in any return of capital, buyback or other distribution or payment to shareholders, unless the Board
determines otherwise. In the event of a bonus issue or rights issue, the rights of the award will be altered
in a manner (if any) determined by the Board, consistent with the ASX Listing Rules.
•
•
In the event of any reorganisation of the issued ordinary capital of the Company before the exercise of
an award, the number of shares attached to each award will be reorganised in the manner specified in
the LTI plan and in accordance with the ASX Listing Rules or, if the manner is not specified, the Board will
determine the reorganisation. In any event, the reorganisation will not result in any additional benefits
being conferred on participants which are not conferred on shareholders of the Company.
Participants who hold an award issued pursuant to the LTI plan have no rights to vote under the LTI award
at meetings of the Company until that award has vested (and is exercised, if applicable) and the
participant is the holder of a valid share in the Company. Shares acquired upon vesting of the award
will, upon issue, rank equally in all respects with other shares.
• No award or share may be offered under the LTI plan if to do so would contravene the Corporations Act,
the ASX Listing Rules or instruments of relief issued by ASIC from time to time.
4.0 Executive and Non-Executive Remuneration
4.1 KMP Remuneration
The respective total reward mix for KMP in FY21 is as follows, assuming business performance results in target
vesting for STI and maximum grant value for LTI.
KMP
Mr. Michael Knaap
Mr. Malik Jainudeen
Mr. Hamish Hamilton
Dr. Richard Henshaw
Fixed Pay
45.4%
60.6%
64.5%
100%
STI
27.3%
24.2%
19.4%
0.0%
LTI
27.3%
15.2%
16.1%
0.0%
At Risk
54.6%
39.4%
35.5%
0.0%
KMP
Component
Commentary
Mr. Michael Knaap –
Chief Executive Officer &
Managing Director
TFR
STI
LTI
(performance
rights)
Notice period
Term of
Agreement
1 July to 31 December 2020 - $500,000 per annum pro
rata
1 January to 30 June 2021 - $525,000 per annum pro rata
The CEO has the opportunity to earn an annual incentive of
60% of total fixed remuneration based on meeting certain
defined criteria. The FY2021 STI criteria were subject to
both financial (70%) and non-financial (30%) outcomes. STI
is only applicable if the clinical pregnancy rate is at or
above the ANZARD mean.
501,629 performance rights were granted in FY2021 which
is equivalent to 60% of TFR. These rights vest at the end of
the 3-year performance period subject to meeting certain
EPS and TSR outcomes.
6 months
No Fixed Term
27
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
4.0 Executive and Non-Executive Remuneration (continued)
KMP
Component
Commentary
Dr. Richard Henshaw
(Executive Director)
TFR
STI
$369,000 per annum.
Dr. Henshaw was the only doctor during FY2021 who served
as a director. He was paid a salary for his clinician duties
and medical leadership roles.
Not eligible for a STI payment
LTI
(performance
rights)
Notice period
Term of
Agreement
Not eligible for a LTI offer
6 months
No Fixed Term
KMP
Component
Commentary
Mr. Malik Jainudeen (Chief
Financial Officer &
Company Secretary)
TFR
STI
LTI
(performance
rights)
Notice period
Term of
Agreement
1 July to 31 December 2020 - $300,000 per annum pro
rata
1 January to 30 June 2021 - $315,000 per annum pro rata
The CFO has the opportunity to earn an annual incentive of
40% of total fixed remuneration based on meeting certain
defined criteria. The FY2021 STI criteria were subject to
both financial (70%) and non-financial (30%) outcomes. STI
is only applicable if the clinical pregnancy rate is at or
above the ANZARD mean.
119,435 performance rights were granted in FY2021 which
is equivalent to 25% of TFR. These rights vest at the end of
the 3-year performance period subject to meeting certain
EPS and TSR outcomes.
3 months
No Fixed Term
KMP
Component
Commentary
Mr. Hamish Hamilton (Chief
Operating Officer)
TFR
STI
LTI
(performance
rights)
Notice period
Term of
Agreement
1 July to 31 December 2020 - $300,000 per annum pro
rata
1 January to 30 June 2021 - $315,000 per annum pro rata
The COO has the opportunity to earn an annual incentive of
30% of total fixed remuneration based on meeting certain
defined criteria. The FY2021 STI criteria were subject to
both financial (70%) and non-financial (30%) outcomes. STI
is only applicable if the clinical pregnancy rate is at or
above the ANZARD mean.
119,435 performance rights were granted in FY2021 which
is equivalent to 25% of TFR. These rights vest at the end of
the 3-year performance period subject to meeting certain
EPS and TSR outcomes.
3 months
No Fixed Term
50.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
4.0 Executive and Non-Executive Remuneration (continued)
4.2 Non-Executive Director (NED) Remuneration Policy
Under the Constitution, the Directors decide the total amount paid to all Directors as remuneration for their services
as Directors. However, under the ASX Listing Rules, the total amount paid to all Directors for their services must not
exceed in aggregate in any financial year, the amount fixed by the Company in a general meeting. This amount
has been fixed by the Company at $950,000. For the 2021 financial year, the fees payable to the current NEDs
are $559,804 in aggregate reflecting a $10,139 reduction compared to FY2020. It should be noted that in
FY2020, the Board made a decision to reduce NED remuneration by 30% in the month of April 2020 in response
to COVID-19. Regular fee payments re-commenced in May 2020.
Role
Fees
Chair
Other Non-Executive Directors
Additional Fees
Audit & Risk Committee – Chair
Audit & Risk Committee – Member
Remuneration & Nomination Committee – Chair
Remuneration & Nomination Committee – Member
2021
$
143,222
89,116
16,974
8,487
16,974
8,487
2020
$
143,222
89,116
16,974
8,487
16,974
8,487
5.0 Details of Remuneration for Key Management Personnel
5.1 Key Management Personnel (“KMP”)
KMP have authority and responsibility for planning, directing and controlling the activities of the Group, directly
or indirectly, including directors of the Company and other executives. KMP comprise the directors of the Company
and the senior executives for the Group named in this report.
Name
Position
Period Covered Under this Report
Non-Executive Directors
Mr Richard Davis
Mr Josef Czyzewski
Mr Neil Broekhuizen
Ms Zita Peach
Ms Catherine West
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Full Financial Year
Full Financial Year
Full Financial Year
Full Financial Year
8 September 2020 to 30 June 2021
Name
Position
Period Covered Under this Report
Executive Directors
Mr Michael Knaap
Dr Richard Henshaw
Other KMP
Mr Malik Jainudeen
Mr Hamish Hamilton
Chief Executive Officer
Executive Director
Full Financial Year
Full Financial Year
Chief Financial Officer
Chief Operations Officer
Full Financial Year
Full Financial Year
29
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Remuneration Report (Audited) continued
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n
o
i
t
a
r
e
n
u
m
e
R
d
e
t
i
m
i
L
p
u
o
r
G
F
V
I
h
s
a
n
o
M
54.
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Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
5.0 Details of Remuneration for Key Management Personnel (continued)
5.2 Analysis of incentives included in remuneration
Details of the vesting profile of the STI cash incentives awarded as remuneration to each director of the Company and
other KMP are detailed below:
Cash Incentive (2021)
Cash Incentive (2020)
% of Available Incentive
% of Available Incentive
Payable
and Paid
Payable
and Paid
Not
Payable
Paid
Paid
Not Paid
$
%
%
$
%
%
Executive Directors
Mr Michael Knaap
Dr Richard Henshaw
$304,138
-
89.4%
-
10.6%
-
49,500
-
16.5%
-
83.5%
-
Other Key Management Personnel
Mr Malik Jainudeen
Mr Hamish Hamilton
$126,655
$96,575
89.8%
88.2%
10.2%
11.8%
14,800
12,841
16.5%
20.0%
83.5%
80.0%
5.3 Loans to Key Management Personnel
No loans were issued to KMP during 2021.
5.4 Key Management Personnel Shareholdings
The following details Monash IVF Group ordinary shares held by Directors and KMP during 2021:
Name
Non-Executive Directors
Mr Richard Davis
Mr Josef Czyzewski
Mr Neil Broekhuizen
Ms Zita Peach
Ms Catherine West
Executive Directors
Mr Michael Knaap
Dr Richard Henshaw
Other Key Management Personnel
Mr Malik Jainudeen
Mr Hamish Hamilton
Total
Balance at start
of year
Granted as
remuneration
Net
Change
Balance at end
of year
182,067
241,382
132,787
92,803
-
150,655
1,358,842
19,231
71,535
2,249,302
-
-
-
-
-
-
-
-
-
-
-
-
217,213
-
37,100
-
-
-
52,300
306,613
182,067
241,382
350,000
92,803
37,100
150,655
1,358,842
19,231
123,835
2,555,915
33
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Remuneration Report (Audited) continued
Remuneration Report (Audited)
for the year ended 30 June 2021
6.0 Link to Group Performance
6.1 Group Performance
The revenue and earnings of the Group for the five years to 30 June 2021 are summarised below:
Measure
Revenue
Reported EBITDA
Underlying EBITDA
Net Profit After Tax (1)
STI Payable
Total Shareholder Return (1)
Closing Share Price ($)
Dividend Per Share (cents)
Earnings per Share (cents) (1)
2021
$’000
183,605
51,281
47,749
25,505
81.1%
61%
0.85
4.2
6.5
2020
$’000
145,417
32,833
34,797
11,726
24.1%
-59%
0.53
2.1
4.6
2019
$’000
151,980
37,242
37,815
19,807
29.4%
34%
1.40
6.0
8.4
2018
$’000
150,736
38,109
38,109
21,181
0%
-35%
1.08
6.0
9.1
2017
$’000
155,182
48,974
48,974
29,619
17.8%
3%
1.78
8.8
12.6
During the period, Revenue, EBITDA, NPAT, TSR and EPS were key performance measures. EBITDA is a major component
of the STI plans for KMP including the CEO, CFO and COO whilst TSR and EPS growth are long term metrics used to
measure the CEO, CFO and COO’s remuneration via the Executive Long Term Incentive Plan. CEO, CFO and COO
remuneration varies with the outcomes of these measures above a required threshold performance level.
1)
The Net Profit after Tax, total shareholder return and earnings per share are not comparable for certain years due to the capital
structure and discontinued operations.
34
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Monash IVF Group Limited
Directors’ Report
Directors’ Report continued
for the year ended 30 June 2021
Matters subsequent to the end of the financial year
On 24 August 2021, a fully franked dividend of 2.1 cents per share was declared. The record date for the
dividend is 10 September 2021 and the payment date for the dividend is 8 October 2021.
Except as disclosed above, there has not arisen in the interval between the end of the financial year and the date
of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of
the Company, to affect significantly the operations of the Group, the results of those operations, or the state of
affairs of the Group, in future financial periods.
Environmental regulations
The Group is not subject to any significant environmental regulations under Commonwealth or State legislation.
Likely developments
The Group remains committed, prudent and focused on profitably growing the Business through leveraging its
scientific capabilities and scale across the clinic network both domestically and internationally.
Indemnification and insurance of officers and auditors
Since the end of the previous financial period, the Group has not indemnified or made a relevant agreement for
indemnifying against a liability any person who is or has been an officer or auditor of the Group.
Lead auditor’s independence declaration
The lead auditor’s independence declaration is set out on page 58 and forms part of the directors’ report for
the year ended 30 June 2021.
This report is made in accordance with a resolution of the directors.
Richard Davis
Chairman
Michael Knaap
Chief Executive Officer and Managing Director
Dated in Melbourne this 24th day of August 2021
35
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Monash IVF Group Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Monash IVF Group
Limited for the financial year ended 30 June 2021 there have been:
i.
ii.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
KPM_INI_01
Chris Sargent
Partner
Melbourne
24 August 2021
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
58.
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Monash IVF Group Limited
Corporate Governance Statement
Corporate Governance Statement
This statement, approved by the Board, reports on the Group’s key governance framework, principles and
practices as at 30 June 2021. These principles and practices are subject to regular review and when necessary
revised to reflect legislative changes or corporate governance best practice.
The Board of Directors is committed to maintaining the Group’s pre-eminent status as a leader in the fields
of Assisted Reproductive Services (ARS) and specialist women’s imaging. This commitment will lead to
sustainable growth and shareholder returns. The Board is a strong advocate of good corporate governance
and its fulfilment of these practices and obligations will enhance the ability for shareholders to be appropriately
rewarded.
Monash IVF Group Limited complies in all material respects with the fourth edition of the ASX
Corporate Governance Council’s Corporate Governance Principles and Recommendations. The details of this
compliance and reasons for any non compliance are set out in this statement. A separate Appendix 4G has
been lodged with the Australian Securities Exchange Limited (ASX).
Principle 1 Lay solid foundations for management and oversight
1.1 Roles and responsibilities of the Board and Management and delegation
The role of the Board is to oversee good governance practice in all aspects of the Group’s undertakings.
This includes setting and approving the strategic direction of the Group and to guide and monitor Monash IVF
Group management and its businesses in achieving their strategic objectives. The Board is committed to
maximising performance through continued investment in all aspects of the business including research, education
and innovation in clinical services to improve patient outcomes.
The Board is committed to a high standard of corporate governance practice and fosters a culture of
compliance which values ethical behaviour, integrity, teamwork and respect for others.
The Monash IVF Group Limited Board Charter outlines the role and responsibilities of the Board along with
direction on Board composition, structure and membership requirements. The Charter clearly outlines
matters expressly reserved for the Board’s determination and those matters delegated to Management.
The Company’s Chief Executive Officer and Managing Director, Michael Knaap, has responsibility for day-to-
day management of Monash IVF Group Limited in its entirety. Michael was previously the Chief Financial
Officer and held the position of Interim Chief Executive Officer between October 2018 and April 2019.
Michael was appointed to Chief Executive Officer and Managing Director on 15 April 2019 and is supported
by the Executive Team which is responsible for implementation of Board directed strategies at an operational
level.
The Monash
website https://www.monashivfgroup.com.au/investor-centre/corporate-governance/
IVF Group Limited Board Charter
is available on
the Monash
IVF Group Limited
1.2 and 1.3 Board and Senior Executive Appointments
In the event of a new appointment to a director or senior executive role, appropriate probity and integrity
checks, such as experience, education, criminal record and bankruptcy history, are undertaken to ensure the
individual has an appropriate background to hold the role with Monash IVF Group Limited. Should the role be
for election of a director for the first time a comprehensive check of the candidates personal and professional
history would occur including details of any other material directorships or non-executive roles.
With the exception of the Managing Director & CEO, one third of all eligible Directors, and any other Director
who has held office for over three years since their last election, must retire in rotation at the Annual General
Meeting (AGM). This is in accordance with the Company’s Constitution. A retiring Director holds office until the
conclusion of the meeting at which he or she retires. They may stand for re-election by security holders at that
meeting. The Board may appoint a new Director to fill a casual vacancy and that Director will hold office until
the close of the next AGM, unless elected at that meeting.
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Corporate Governance Statement continued
Corporate Governance Statement
Principle 1 Lay solid foundations for management and oversight (continued)
The Board makes recommendations in respect of the election or re-election of each Director based on tenure, skills
and experience of the Director in relation to Board composition. The Remuneration and Nomination Committee
ensures that appropriate background checks take place for the appointment of a new Director. The details of
those Directors who stand for re-election will be provided in the Notice of Meeting which is sent to security holders
prior to the AGM. The Board provides security holders with all material information in its possession relevant to a
decision on whether or not to elect or re-elect a director, in addition a statement by the Board as to whether it
supports the election or re-election of the candidate and a summary of the reasons as to why the Board has taken
this view. Additionally, each Director standing for re-election makes a short presentation to security holders at the
meeting itself.
All Board members have a written agreement outlining the terms of their appointment clearly articulating the
expectations, roles and responsibilities and remuneration of their role.
All employment agreements for senior executives clearly set out their terms of appointment, remuneration and
requirements to adhere to company policies and procedures. Industry regulation and Company policy requires
police checks for employees which are undertaken prior to commencement. Employment contracts require
employees to disclose any offences that would result in an adverse police check.
1.4 Company Secretary
Mr Malik Jainudeen was appointed in the role of Company Secretary and Chief Financial Officer with Monash IVF
Group Limited in April 2019. Malik’s role is to work closely with the Board and its committees to advise on
governance matters and to oversee meeting protocols are adhered to including comprehensive minutes.
1.5 Diversity and Inclusion Policy
Monash IVF Group recognises that its business success is a reflection of the quality of its people and is proud of its
strong diverse and inclusive workforce. The Company’s workforce is made up of individuals with a diverse set of
skills, values, experiences, backgrounds and attributes including those gained on account of their gender, age,
disability, ethnicity, marital or family status, religious or cultural background and sexual orientation. Monash IVF
Group is committed to supporting and further developing this through attracting, engaging and retaining diverse
talent as supported by a Diversity & Inclusion policy.
Monash IVF Group is a recognised employer under the Workplace Gender Equity Act 2012 and is compliant with
the requirements of the Australian Government Workplace Gender Equity Agency. The breakdown of gender
diversity at Monash IVF Group is listed below:
Organisational Level
Non-Executive Directors
Senior Management
Team Leader
Total Staff (inc above)
Number of Women
2
9
43
669
% of Women
40%
50%
80%
91%
Target
30%
50%
50%
The Board recognises the high proportion of women in the workplace and acknowledges that this gender diversity
is reflective of the nature of the organisation. The Remuneration and Nomination Committee sets measurable
objectives to achieve gender diversity and Monash IVF Group achieves diversity above industry standard with
50% female representation of Executives reporting to the CEO. Board representation continues to be targeted at
a minimum of 30% female representation. These measures were met during the year. Senior Management is
defined as Executive Directors and Management personnel in operational leadership positions generally specific
to state leadership teams.
Monash IVF Group has in place a Flexible Work Arrangements policy to promote work/life balance and to
accommodate family care in line with the operational requirements of the Business. During FY21, 58 employees
have taken primary and secondary parental leave, utilising the Group’s generous parental leave policy. Flexible
hour working arrangements either formally and informally are widely used across Monash IVF Group.
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Monash IVF Group Limited
Corporate Governance Statement continued
Corporate Governance Statement
Principle 1 Lay solid foundations for management and oversight (continued)
The Diversity and Inclusion Policy is overseen by the Remuneration and Nomination Committee. The Committee has
no executive powers with regard to its findings and recommendations however is responsible for monitoring,
reviewing and reporting to the Board on the Company’s performance in respect to diversity in accordance with the
Company’s Diversity and Inclusion Policy. The Board is committed to targeting a board composition aligned to
its workforce and patient base over time.The Diversity Policy is available on the Monash IVF Group Limited
website https://www.monashivfgroup.com.au/investor-centre/corporate-governance/
Monash IVF Group is committed to providing a diverse and culturally inclusive work environment to ensure that
all employees are valued and safe in their workplace. Monash IVF Group provides an Equal Employment
Opportunity policy framework in relation to harassment, bullying, discrimination and grievance procedures.
The policies are available to all employees via the Company intranet. The Group also offers an employee
assistance program that provides a confidential counselling service to support employee wellbeing in the
workplace. To ensure a full understanding of respectful workplace obligations, the organisation utilises a
Learning Management System, an online learning management portal to manage and track the full
compliance of all respectful workplace topics. Monash IVF Group continued their partnership with Pride in
Diversity, a national not-for-profit employer support program for LGBTI workplace and is specifically designed
to assist employers and employees with all aspects of inclusion including awareness and education.
1.6 Director Performance Evaluation
The Remuneration and Nomination Committee Chair undertakes the process of performance reviews of the
Board, its Committees and the Chairman. Objectives of the review are to ensure the Board adheres to ASX
governance principles and to identify opportunities to improve the functioning of the Board as a whole. The
focus is on the performance of the Board as a whole and, to a lesser extent, the Board committees. The
Chairman performs individual appraisals on each director.
The annual review completed by Monash IVF Group Limited Board was undertaken in July 2021. It
involved directors completing a confidential online questionnaire covering aspects outlined in the Board Charter.
The results were aggregated and discussed by the Board to inform areas or opportunities for improvement.
1.7 Senior Executive Evaluations
Monash IVF Group Limited has an annual Performance Review Policy for all senior executives and managers
as stated in the Board Charter. Senior executive and manager performance is reviewed by the CEO against
KPIs which are both financial and non financial in nature. The performance evaluation process has been
undertaken in accordance with this policy for the current financial year. The Remuneration and Nomination
Committee has oversight of this process.
The Chairman of the Board performs the CEO performance review against annual key performance
indicators. Michael Knaap’s performance was formally reviewed in August and recommendations as a result
were taken to the Board. The Board oversees and monitors the key performance indicators and strategic
plan for the Group which also allows the Board to monitor the performance of senior executives outside the
annual review process.
Principle 2 Structure of the Board to be effective and add value
The Constitution of the Company provides that the number of Directors must at any time be no more than ten and
no less than three members. The Monash IVF Group Limited Board currently consists of seven directors,
five independent and two non independent members. The Board charter prescribes that the Chair of the Board
must be independent and the Board should consist of individuals who contribute a mix of skills and a
diversity of professional backgrounds. Further information on the Board members is available in the Directors
Report.
Monash IVF Group Limited believes the current Board of seven members adequately allows its members to carry
out its responsibilities without unnecessarily debasing its effectiveness with an excessive number that can
hinder individual engagement and involvement of Board members. To add efficiency to the Board, two
committees are in-place; the Remuneration and Nomination Committee and the Audit and Risk Committee.
The Board Charter prescribes that all committee members be Independent Directors.
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Monash IVF Group Limited
Corporate Governance Statement continued
Corporate Governance Statement
Principle 2 Structure of the Board to be effective and add value (continued)
2.1 Remuneration and Nomination Committee
The Remuneration and Nomination Committee is governed by the Remuneration and Nomination Committee Charter
as found on the Monash IVF Group Limited website at
https://www.monashivfgroup.com.au/investor-centre/corporate-governance/
Following the resignation of the Chair of the Remuneration and Nomination Committee, Christina Boyce on 29 June
2020, Ms Zita Peach has been appointed the Chair of the Remuneration and Nomination Committee. Ms Catherine
West was appointed to the Remuneration and Nomination Committee on 8 September 2020.
The Remuneration and Nomination Committee consist of four independent Directors of the Board:
• Ms Zita Peach (Chair)
• Mr Richard Davis
• Mr Josef Czyzewski
• Ms Catherine West
The Committee met 5 times with all Committee members in attendance.
The Committee assists the Board by reviewing and making recommendations to the Board in relation to:
•
•
•
•
•
•
•
•
•
•
•
•
•
the Company's remuneration policy;
Board succession issues and planning;
Board member and re-election of members to the Board and its committees;
Director induction and continuing professional development programs for Directors;
remuneration packages of senior executives;
non-executive Directors and executive Directors, equity-based incentive plans and other employee benefit
programs;
Company superannuation arrangements;
the Company's recruitment, retention and termination policies;
succession plans of the CEO, senior executives and executive Directors;
the process for the evaluation of the performance of the Board, its Board Committees and individual
Directors;
the review of the performance of senior executives;
review of the Company's remuneration policies and packages; and
the size and composition of the Board and strategies to address Board diversity and the Company's
performance in respect of the Company's Diversity and Inclusion Policy, including whether there is any
gender or other inappropriate bias in remuneration for Directors, senior executives or other employees.
2.2 Board Skill Matrix
On establishing the Board in 2014 the desirable skills, attributes and experience required was considered in
searching for potential Board members. The below skill matrix outlines the Board of Director skill set during FY21:
62.
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Corporate Governance Statement continued
Corporate Governance Statement
Principle 2 Structure of the Board to be effective and to add value (continued)
Monash IVF Group Limited believe the current Director skill set is adequate to ensure an appropriate and diverse
mix of backgrounds, expertise, experience and qualifications exist to assist with being able to understand and
effectively advice on Group strategy and growth.
2.3, 2.4 and 2.5 Board members, roles and independence
A summary of the Board members, their roles, independence and appointment dates are as follows:
Director
Position
Independent
Mr Richard Davis
Independent Chairman
Mr Josef Czyzewski
Independent non-executive Director
Ms Zita Peach
Independent non-executive Director
Mr Neil Broekhuizen
Independent non-executive Director
Yes
Yes
Yes
Yes
Appointment
Date
4/6/2014
4/6/2014
12/10/2016
4/6/2014
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Monash IVF Group Limited
Corporate Governance Statement continued
Corporate Governance Statement
Principle 2 Structure of the Board to be effective and to add value (continued)
Director
Position
Independent
Mr Michael Knaap
CEO and Managing Director
Dr Richard Henshaw
Executive Director
No – CEO and Managing
Director
No – Fertility Specialist with
Monash IVF Group Limited
Appointment
Date
15/4/2019
30/4/2014
Ms Catherine West
Independent non-executive Director
Yes
8/9/2020
The Board Charter outlines that at least half of the Board should be independent directors, one of whom is the
Chairman. A director is deemed to be “independent” if free of any business or other relationship with the Company
that could materially interfere with, or could reasonably be perceived to interfere with, the exercise of unfettered
and independent judgement.
The Board has assessed, using the criteria set out in the ASX Corporate Governance Principles and Recommendation,
the independence of non-executive directors in light of their interests and relationships and considers at least half
to be independent. The independence status and length of service of each director is outlined in the table above.
The percentage of Board members considered independent was 71%.
Mr Richard Davis was appointed Monash IVF Group Limited Chairman in June 2014. He is a non-executive
Independent Director. Mr Davis, in his role as Chair, provides leadership to the Board and advice and support to
the CEO. The Chair of the Board is responsible for overseeing Board dynamics and ensuring all directors contribute
effectively and constructively to Group meetings and strategic agendas.
2.6 Director Induction and Professional Development
Monash IVF Group Limited has a comprehensive induction process for Directors and senior executives. This induction
includes meetings with senior management and staff to gain an understanding of the core business, strategy,
financial, operational and risk management matters and factors relevant to the sectors and environments in which
the Company operates as well as visits to laboratories and clinics to gain a more in depth understanding of the
business.
The Chairman periodically reviews whether there is a need for Directors to undertake professional development
to maintain the skills and knowledge needed to perform their role as Directors effectively. Directors are active in
undertaking professional development opportunities for the purpose of development and maintenance of their
skills. The Board and its Committees are provided with updates and information from both management and
external experts on various topics relevant to the Company’s circumstances, including emerging business and
governance issues relevant to the Company and material developments in laws and regulations. The Board and
individual Directors attend at operational sites, meet staff in operations and receive presentations from
management across the Group’s operations. Board members have been continuously informed via research papers
and presentations, financial and business results and discussion involving market strategic initiatives contributing to
the continued professional development of the Board.
Principle 3 Instill a culture of acting lawfully, ethically and responsibly
3.1 Organisational values
The Board and senior executives are firmly committed to ensuring that all employees observe high standards of
lawful, ethical behaviour and conduct. Setting the cultural tone for the organisation, Monash IVF Group’s core values
are as follows:
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Monash IVF Group Limited
Corporate Governance Statement continued
Corporate Governance Statement
Principle 3 Instill a culture of acting lawfully, ethically and responsibly (continued)
Monash IVF Group Limited
Corporate Governance Statement
Principle 3 Instill a culture of acting lawfully, ethically and responsibly (continued)
Our
Principles
Care
• Promotes a team environment that values, encourages
and supports differences.
• Genuinely cares about people.
• Is available and ready to help.
• Demonstrates real empathy with the joys and pains of others.
Replace image
Collaborate
• Build strong formal and informal, internal and external networks
across a variety of functions and locations.
• Partners with others to achieve quality outcomes and share in the successes.
• Values, calls upon and utilises the experience and expertise of others.
• Shares information for the benefit of individual, team, clinic and or organisation.
Replace image
Communicate
• Provides the information people need to know, to do their jobs
and to feel valued as a member of the team, clinic and organisation.
• Utilises different types of communication to deliver timely and
meaningful messages.
• Has the patience to hear people out .
Commitment
• Is dedicated to meeting the expectations and requirements of
patients, clinicians and internal stakeholders.
• Persists in accomplishing objects despite obstacles and setbacks.
• Pushes self and others to achieve.
Monash IVF Group’s performance review process requires assessment of the extent to which personnel have
demonstrated behaviour consistent with these values. The values also form the foundation for the monthly and
annual employee CUDOS Awards, recognising and celebrating outstanding employee behaviour in line with these
values.
Create
• Challenges the traditional way of thinking and adopts change where required.
• Shows initiative and can spot and seize opportunities.
• Empowers others to bring creative ideas and suggestions to life.
The principles are provided with sufficient guidance to enable personnel to make decisions consistent with the
Board’s risk appetite and core values.
Monash IVF Group’s performance review process requires assessment of the extent to which personnel have
demonstrated behaviour consistent with these values. The values also form the foundation for the monthly and
3.2 Code of Conduct and whistleblower program
annual employee CUDOS Awards, recognising and celebrating outstanding employee behaviour in line with these
values.
Monash IVF Group Limited recognises the need to observe the highest standards of corporate practice, business
conduct and responsible decision making. Accordingly, the Board adheres to a formal Code of Conduct which
The principles are provided with sufficient guidance to enable personnel to make decisions consistent with the
outlines Monash IVF Group Limited policies on various matters including ethical conduct, business and personal
Board’s risk appetite and core values.
conduct, compliance, privacy, security of information, financial integrity and conflicts of interest. This Code clearly
states the standard of responsibility and ethical conduct expected of staff, directors or doctors engaged by the
3.2 Code of Conduct and whistleblower program
Company. The Code recognises the numerous legislative and compliance matters that affect the business.
Monash IVF Group Limited recognises the need to observe the highest standards of corporate practice, business
conduct and responsible decision making. Accordingly, the Board adheres to a formal Code of Conduct which
outlines Monash IVF Group Limited policies on various matters including ethical conduct, business and personal
conduct, compliance, privacy, security of information, financial integrity and conflicts of interest. This Code clearly
states the standard of responsibility and ethical conduct expected of staff, directors or doctors engaged by the
Company. The Code recognises the numerous legislative and compliance matters that affect the business.
.65
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Monash IVF Group Limited
Corporate Governance Statement continued
Corporate Governance Statement
Principle 3 Instill a culture of acting lawfully, ethically and responsibly (continued)
The Code of Conduct promotes ethical and responsible decision making by directors, contractors and employees.
The Code also gives direction in the avoidance of conflicts of interest and mandates high standards of personal
integrity, objectivity and honesty in the dealings of all Monash IVF Group Limited Board members and staff,
detailing guidelines to ensure the highest standards are maintained. Monash IVF Group holds all staff to act
according to this code to maintain standards in confidentiality and general behaviour. The code is provided to all
staff as part of the Group induction process and compliance is reviewed regularly. The Board or Audit and Risk
Management Committee are informed of any material breaches of the entity’s code of conduct.
3.3 Whistleblower policy
The Company has a Whistleblower policy which has been communicated to all Company personnel and published
on the Company’s website.
The Whistleblower Policy promotes and supports the reporting of matters of concern and suspected wrongdoing,
such as dishonest or fraudulent conduct, breaches of legislation and other conduct that may cause financial loss or
be otherwise detrimental to its reputation or interests. The Policy sets out the approach to disclosure, investigation
and reporting and outlines the protection to be afforded to those who report such conduct against reprisals,
discrimination, harassment or other disadvantage resulting from their reports. All disclosures received under the
Whistleblower Policy are reported to the Audit and Risk Management Committee with details of investigations
completed.
Monash IVF Group Limited Code of Conduct policy and Whistle Blower policy can be found in full on our website
under www.monashivfgroup.com.au/investor-centre/corporate-governance/
3.4 Anti-Bribery and Corruption policy
The Company has an Anti-Bribery and Corruption policy which has been communicated to all Company personnel
and published on the Company’s website.
The Anti-Bribery and Corruption policy describes the standards of ethical conduct and behaviour required of
all Individuals within the Monash IVF Group, noting that all representatives must act within the law and not engage
in corrupt practices or acts of bribery that expose Monash IVF Group, its employees and clinical partners to
the risks of prosecution, fines and imprisonment, as well as endangering Monash IVF Group’s reputation. Where
these standards are not met, then appropriate disciplinary action may be taken. Monash IVF Group will apply a
zero-tolerance approach to acts of bribery and/or corruption by any Individual or third-party representative. The
Board or Audit and Risk Committee are informed of any material breaches of the entity’s Anti-Bribery and
Corruption policy.
Monash IVF Group Limited Anti-Bribery and Corruption policy can be found in full on our website under
www.monashivfgroup.com.au/investor-centre/corporate-governance/
Principle 4 Safeguard integrity in corporate reporting
4.1 Audit and Risk Management Committee
The Audit and Risk Management Committee for Monash IVF Group Limited are responsible for supervising the
process of corporate governance, financial reporting and risk management, internal control, continuous disclosure,
non-financial risk monitoring and external audit. The Committee’s role, as outlined in the Audit and Risk
Management Committee Charter, is to monitor the Group’s compliance with laws and regulations and adherence
to the Group Code of Conduct and to promote discussion with regard to risk between Board, management and the
external auditor.
Monash IVF Group Limited engages the services of an external auditor; who’s independence and performance is
monitored and reviewed by the Audit and Risk Management Committee. The external auditors and Audit & Risk
Committee and Audit Chair met on a number of occasions independently of Management.
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Corporate Governance Statement continued
Corporate Governance Statement
Principle 4 Safeguard integrity in corporate reporting (continued)
The Audit and Risk Management Committee consists of three non-executive Independent Directors with experience
and qualifications in financial management as outlined in the Audit and Risk Management Committee Charter.
Current members of the Committee are:
• Mr Josef Czyzewski (Chair)
• Mr Richard Davis
• Mr Neil Broekhuizen
The Committee met five times during the year.
Details of the Committee members’ experience and technical expertise are set out in the directors’ biographies
which can be viewed on the Board of Directors pages in the latest Annual Report. The Audit and Risk Management
Committee Charter is available on the Monash IVF Group Limited website at
https://www.monashivfgroup.com.au/investor-centre/corporate-governance/
4.2 Financial Statement Approval
Monash IVF Group Limited CEO and Managing Director, Mr Michael Knaap, and CFO, Mr Malik Jainudeen,
reviewed and verified that the half year and full year reporting statements as listed in reports to the ASX and
shareholders are true and accurate. A declaration to that effect has been signed by both to declare that the
financial records have been entered and maintained as per the Corporations Act (2001) accounting standards and
they give a fair and true view of the financial position and performance of Monash IVF Group Limited. Further a
detailed questionnaire is completed by senior operational, administrative and financial management attesting to
the validity and integrity of the processes that they control prior to the approval of the financial statements. These
questionnaires are reviewed by the Audit and Risk Management Committee.
4.3 Process for verifying Periodic Corporate Reports
Monash IVF Group Limited is committed to providing security holders and other external stakeholders with timely,
consistent and transparent corporate reporting. The process which is followed to verify the integrity of periodic
corporate reports is tailored based on the nature of the relevant report, its subject matter and where it will be
published. Monash IVF Group Limited seeks to adhere to the following general principles with respect to the
preparation and verification of its corporate reporting:
•
•
•
periodic corporate reports prepared by, or under the oversight of, the relevant subject matter expert
for the area being reported on;
the relevant report is in compliance with any applicable legislation or regulations;
the relevant report reviewed (including any underlying data), with regard to ensuring it is not
inaccurate, false, misleading or deceptive; and
• where required by law or by Monash IVF Group policy, relevant reports authorised for release by the
appropriate approver required under that law or policy.
Consistent with these principles, the non-audited sections of the Annual Report and Corporate Governance
Statement for the Reporting Period were prepared by the relevant subject matter experts and reviewed and
verified by relevant senior executives and senior managers prior to Board approval. ASX announcements (other
than administrative announcements) during the Reporting Period were also reviewed and approved in accordance
with the Continuous Disclosure policy, which includes review by the Board, CEO and CFO prior to publication.
Principle 5 Make timely and balanced disclosure
5.1 Continuous Disclosure
Monash IVF Group Limited is committed to effective communication with its investors and the wider community. The
Company strives to ensure that all Stakeholders, market participants, patients and the wider community are
informed in a timely manner of its activities and performance in line with its Continuous Disclosure Policy.
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Corporate Governance Statement continued
Corporate Governance Statement
Principle 5 Make timely and balanced disclosure (continued)
This policy complies with the continuous disclosure obligations under the Corporation Act (2001) and the ASX Listing
Rules and as much as possible seeks to achieve and exceed best practice to promote investor confidence in Monash
IVF Group Limited.
Continuous disclosure principles and requirements are well understood by the Monash IVF Group Limited Company
Secretary and the Board of Directors and are in place to ensure all relevant information, especially of a sensitive
nature, is made available in a timely manner. Any matters requiring disclosure are raised for consideration
whenever necessary. The Monash IVF Group Limited website is structured to provide shareholders and the
community with easy access to information.
5.2 and 5.3 Material market announcements and presentations
The Company Secretary ensures that the Board receives copies of all material market announcements promptly
after they have been made and ensures that any new investor or analyst presentation is released on the ASX
before the presentation is given. The Continuous Disclosure Policy can be found on the Monash IVF Group
website at https://www.monashivfgroup.com.au/investor-centre/corporate-governance/
Principle 6 Respect the rights of security holders
6.1 Communication with Shareholders
Monash IVF Group Limited ensures shareholders are fully informed of its governance processes and are notified of
any major developments affecting the Group. In line with the Monash IVF Group Limited Communication Policy the
Company's website is considered to be the primary means to provide information to all stakeholders. It has been
designed to enable information to be accessed in a clear and readily accessible manner including:
•
•
•
•
•
•
•
•
Company information including Board members;
A ‘Corporate Governance’ landing page with documents including the Company's codes, policies and
charters;
all announcements and releases to the ASX;
copies of presentations to shareholders, institutional investors, brokers and analysts;
any media or other releases;
all notices of meetings and explanatory material;
annual and half yearly reports;
any other relevant information concerning non-confidential activities of the Company including business
developments.
The Company website can be found at www.monashivfgroup.com.au where information can be clearly located
under heading:
•
•
•
Home – homepage with Company history and overview
About – information on Our People, Collaborations and Career Opportunities
Research and Innovation – lists current and published research and our scientific firsts.
6.2 Investor Relations
to
there
is a dedicated
the Company website,
found
In addition
at https://www.monashivfgroup.com.au/investor-centre/corporate-governance/ which provides
investors and
shareholders with information on Monash IVF Group Limited Board members, Announcements, Corporate
Governance documents, Results presentations and webcasts. The Investor Centre also acts as a portal for
two way communication between the Company and investors with links to a ‘Contact Us’ page which allows
individuals to email enquiries and also provides postal address and contact number to allow access to the
Company. The Communication Policy can be located at: https://www.monashivfgroup.com.au/investor-centre/
corporate-governance/
Investor Relations page
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Corporate Governance Statement continued
Corporate Governance Statement
Principle 6 Respect the rights of security holders (continued)
6.3 and 6.4 Attendance at Company meetings
As cited in the Monash IVF Group Limited Communications Policy, the Company encourages full participation of
Shareholders at the Annual General Meeting which provides an excellent opportunity for the Company to provide
information to its shareholders and to receive Shareholder feedback.
The next Annual General Meeting will be held on 19 November 2021.
In the event Shareholders are not able to attend the meetings, questions can be directed to the Group for
addressing at the Annual General Meeting and the presentations and webcasts are promptly added to the
website. These can be found at https://www.monashivfgroup.com.au/investor-centre/agms/
All resolutions put to the Annual General Meeting will be decided by way of a poll. Shareholders are also able to
direct any questions via the Group’s share registry provider, Link Market Services.
6.5 Electronic Communication
The Company recognises that electronic communication is often a more efficient and more desired form of
communication. Monash IVF Group Limited Communications Policy addresses this and accordingly Shareholders
are given the option to communicate with the Company Share Registry electronically.
The Company's email system allows staff and stakeholders to communicate with ease with Management and staff
of the Company. Doctors, employees and other stakeholders have access to this system and are encouraged to
use it to improve the flow of information and communication generally.
The Monash IVF Group Limited Communications Policy can be located at https://www.monashivfgroup.com.au/
investor-centre/corporate-governance/
Principle 7 Recognise and Manage Risk
The Monash IVF Group Limited Board, primarily through the Audit and Risk Management Committee, reviews
and manages risk areas for the Group. Refer to section 4.1 for further information.
7.1 Audit and Risk Committee
The identification and appropriate management of risks is an important priority for the Monash IVF Group
Limited Board. ‘Risks’ are identified as any possible outcomes that could materially impact the Company's
financial performance, assets, reputation, people or the environment.
Risk recognition and management are viewed by the Company as integral to its objectives of creating
and maintaining shareholder value, and to the successful execution of the Company's strategies. The Audit
and Risk Management Committee oversees and governs risk management strategy and policy, to monitor risk
management and to establish procedures which seek to provide assurance that major business risks are
identified, consistently assessed and appropriately addressed.
The Committee abides by the Audit and Risk Management Committee Charter to assist the Board in fulfilling
its corporate governance and oversight responsibilities
in actively identifying risks and developing
appropriate mitigating actions. The Committee adheres to the Risk Management Policy for the business which
highlights the risks relevant to Company operations and oversees that the entity is operating with due regard to
the risk appetite set by the Board.
Monash IVF Group Limited’s Audit & Risk Management Committee Charter can be found on the website
at: https://www.monashivfgroup.com.au/investor-centre/corporate-governance/
This Charter prescribes that the Audit and Risk Management Committee consist of at least three Board
Directors that are non-executive independent Directors.
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Corporate Governance Statement continued
Corporate Governance Statement
Principle 7 Recognise and Manage Risk (continued)
7.2 Risk Management
Monash IVF Group provides a framework for risk management which supports the achievement of our strategic
and operational objectives. We are committed to maintaining an organisational philosophy and culture which
ensures that effective risk management is integrated into day to day activities.
The Group maintains a Risk Register that documents all identified risks, lists appropriate preventative actions to
mitigate risks, reviews process of risk reduction and nominates responsible persons who take ownership of the risk
strategy process. The Risk Register is reviewed by the Risk Owners, Leadership teams and Executive Team help
determine whether risks are still current, controls are effective and identify any emerging risks, which are then
flagged to the Audit and Risk Management Committee. A review of Risk Management is undertaken annually.
Specialist software used to record adverse events and feedback ensures that exposures to risk are continually
monitored to ensure they are adequately understood and managed. This system of reporting also allows for formal
monitoring of patient safety, identification training needs and informs clinical policy decision making.
7.3 Internal Audit
Monash IVF Group Limited does not have a designated Internal Audit Function at present but the Group performs
internal audit activities from a clinical and operational perspective to ensure compliance with various external
accreditation requirements.
The CEO and CFO have key responsibility in ensuring that internal controls are in place, operating effectively and
reviewed for continual improvement. As part of the various accreditation and licencing processes undertaken by
the business, key internal audit functions are undertaken. These audits are then made available to accreditation
and licensing bodies. Certain financial internal controls are tested by KPMG as part of their financial statement
audit procedures. The Group believes internal controls implemented such as segregation of duties, delegation
processes, treasury controls and structured approval processes counter many risks. The Group will continue to assess
whether an independent third party internal audit function or designated in-house internal audit function is required.
7.4 Risk Exposure
Monash IVF Group Limited provides assisted reproductive services in Australia and Malaysia and specialist women’s
imaging services in Australia. The Group is committed to performing services in an open and transparent
environment and in a manner that is honest and ethical. The Group embraces responsibility for corporate actions
and encourages a positive impact on the environment and stakeholders including patients, employees, investors
and the community.
Since its early pioneering days in assisted reproductive treatment, resulting in the first IVF pregnancy in 1973,
Monash IVF Group Limited has played an important role in the local communities it serves and society at large. Its
focus on evidenced based fertility care provides the opportunity to commit resources to scientific research, clinical
teaching and training. The Group’s services are offered to all and do not discriminate, including nature and
complexities of infertility.
From an ethical and social perspective, Monash IVF Group Limited and its subsidiary companies ensure national
regulation and state legislation drives the standards of care to ensure its protects its patients, donors and any
children born as a result of treatment provided by the Group.
All Monash IVF Group facilities meet the appropriate standards for accreditation including:
•
•
•
•
Assisted reproductive treatment sites in Australia are accredited with the Reproductive Technology
Accreditation Committee (RTAC) and the Group ensures appropriate documentation is held by sites,
doctors, nurses and scientists. This accreditation incorporates components covering ethics and safety in
practice and management of adverse events.
Day surgeries are accredited with National Safety and Quality Health Service (NSQHS) standards which
ensure quality standards are consistent with an exceptional standard of care expected by consumers in
health facilities.
Diagnostic laboratories are accredited to ISO 15189 and relevant NPAAC Guidelines.
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Corporate Governance Statement continued
Corporate Governance Statement
Principle 7 Recognise and Manage Risk (continued)
•
•
Diagnostic imaging (ultrasound) facilities are accredited with the Department of Health Diagnostic Imaging
Accreditation Scheme (DIAS).
The Group’s Malaysian clinic whilst not legally requiring the same level of regulation, operates to the
same standards having been externally accredited to the international RTAC standards.
The Group recognises that its staff and Doctors are instrumental to the success of the Organisation. Comprehensive
recruitment, credentialing, induction, training and development programs are designed to attract and retain staff
equipped to deliver outstanding customer care. Staff actively participate in the continual improvement of the
Group’s internal policies and processes and are encouraged to participate in innovation and research.
The Monash IVF Group Workplace Health and Safety Policy framework covers policies on general safety in the
workplace. Monash IVF Group Limited recognises protecting the environment is a critical issue and a key
responsibility of the Business and corporate community. Monash IVF Group is an organisation that is not involved
in manufacturing or resource extraction and hence it considers its environmental footprint to be small.
The Group adopts a philosophy of clinical excellence in an environment of safe and supportive service provision.
No material environmental or social sustainability risks have been identified. The Group adopts the approach of
a responsible corporate citizen with regard to the management of waste and hazardous materials. The Group is
not a significant consumer of electricity, water or gas and accordingly, the opportunities for material reductions in
utility consumption are limited.
The Quality Management System in place in each laboratory supports the review and monitoring of quality of
product from suppliers. New consumables undergo a full quality screening process and products are thoroughly
evaluated to review where and how products are manufactured before being used in the laboratories. All products
are reviewed formally on an annual basis to ensure they maintain quality standards and informally on a day to
day basis. Currently all Monash IVF Group clinics use predominantly products from the top two suppliers of
laboratory products in Australia in order to maintain consistency in quality.
The Group takes cyber security and its potential consequences extremely seriously. The Group has comprehensive
security arrangements in place to isolate attacks on its systems and ensure that attempted intrusions are identified
and viruses are not spread across the Group’s network or systems. The Group’s IT systems operate safely and
securely as demonstrated by a recent cyber-attack that failed to propagate through our systems. Our preventative
controls isolated the attack to a comparatively small subset of system resources, while we hardened our firewall
and email filtering to stop this and future attacks from coming through. Numerous levels of redundancy and backup
are built into the IT systems providing a high degree of system availability and protection of data. The Group
periodically engages an independent third party to review the Group’s cyber security risk. Recommendations from
these reviews continue to be implemented and the Group continues to invest to further enhance cyber security
measures in place.
Economic risk continues to be potentially material to Monash IVF Group Limited. Our services in Australia are
indirectly funded to a significant extent by the Australian Federal Government through the Medicare Benefit
Schedule and Extended Medicare Safety Net. Any change to the funding arrangements could lead to a reduction
in revenue affecting financial performance and sustainability of the Group. Market contraction and changes to
market dynamics can significantly affect business outcomes and is a risk for the Group. Market competitiveness
has heightened in recent years with the introduction of low cost providers. One area where Monash IVF Group
Limited has been integral in leading the industry has been in advocating for governing bodies to be more
transparent in reporting outcomes of treatments to allow patients to be better informed before commencing
treatment. Tightening industry standards on consistency of data gathering, outcome reporting and transparency
of results to the community will lead to improved outcomes for patients and the industry generally.
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Corporate Governance Statement continued
Corporate Governance Statement
Principle 8 Remunerate fairly and responsibly
8.1 Remuneration and Nomination Committee
As outlined above under ‘Structure the Board to add value’ Monash IVF Group Limited has a combined
Remuneration and Nomination Committee which assists the Board with discharging its responsibilities to Shareholders
with regard to developing and monitoring remuneration policies and practices for Directors, Senior Executives and
employees.
The Committee works under the guidance of the Remuneration and Nomination Committee Charter and
Remuneration Policy. All members of the Committee are non-executive independent Directors.
Details of the Committee members’ experience and technical expertise are set out in the directors’ biographies
which can be viewed on the Board of Directors pages in the latest Annual Report. Details of the number of times
the Committee met throughout the period and individual attendances of the members can be viewed in the Directors
Report in the latest Annual Report.
8.2 Remuneration of executive and non-executive directors
Under the guidance of the Remuneration and Nomination Committee and the Remuneration Policy the Monash IVF
Group Limited Board has established a framework for remuneration that is designed to ensure consistent and
reasonable remuneration policies and practices are observed which optimise the attraction and retention of
directors and management and fairly rewards Directors and senior management for positive performance.
Monash IVF Group Limited remuneration practices for Executive appointments are expanded on in the
Remuneration Report. The Monash IVF Group Limited Remuneration Policy can be found on the Group website
at: https://www.monashivfgroup.com.au/investor-centre/corporate-governance/
8.3 Equity Based remuneration
The Board may award incentive payments to the CEO, CFO and Senior Executives in the form of equity. The
Corporations Act prohibits key management personnel (or closely-related parties) of an ASX-listed Australian
company from entering into an arrangement that would limit their exposure to an element of their remuneration
subject to a holding lock. Equity-based awards are made on the condition that Corporations Act requirements are
complied with.
Directors and officers cannot buy and sell securities when in possession of price sensitive information and during at
minimum the following periods, referred to as Prohibited Periods:
•
the period from the end of the Company’s financial year (30 June) until the announcement of the
Company’s full year results to the ASX; the period from the end of the Company’s half year (31 December)
until the announcement of the Company’s half year results to the ASX.
Approval from the Chair is required prior to any transacting in shares contemplated by directors and Managing
Director, and approval from the Managing Director for any transacting contemplated by the CFO and Company
Secretary.
A copy of the Securities Trading Policy is available on the Company’s website. Directors and senior executives are
not permitted to hedge their exposure to Company securities. Employees, directors and senior executives are not
permitted to use Company securities as collateral in any financial transaction, including margin loan arrangements.
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Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2021
for the year ended 30 June 2021
93
Revenue from services
Employee benefits expense(1)
Clinician fees
Raw materials and consumables used
IT and communications expense
Depreciation expense
Amortisation expense
Property expense
Marketing and advertising expense
Professional and other fees
Other expenses
Operating profit
Net finance costs
Profit before tax
Income tax expense
Net profit after tax for the year
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges
Tax on cash flow hedges
Exchange difference on translation of foreign operations
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive income for the year
Profit attributable to:
Owners of the Company
Non-controlling interests
Profit for the year
Total comprehensive income attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income for the year
Earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
Note
2.4,2.5
2.6
4.4
1.5
Consolidated
2021
$’000
183,605
(55,765)
(32,673)
(19,893)
(4,104)
(10,703)
(2,189)
(3,820)
(6,387)
(3,814)
(5,866)
38,391
(2,451)
35,940
(10,435)
25,505
-
-
(233)
(233)
25,272
25,148
357
25,505
24,915
357
25,272
2020
$’000
145,417
(48,996)
(25,743)
(16,408)
(3,059)
(9,106)
(1,894)
(3,345)
(5,718)
(4,052)
(5,263)
21,833
(5,707)
16,126
(4,366)
11,760
1,115
(336)
(77)
702
12,462
11,726
34
11,760
12,428
34
12,462
1.4
1.4
6.5
6.4
4.6
4.5
(1) Includes JobKeeper Subsidy impact of $5.06m (refer note 1.1).
The consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
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Monash IVF Group Limited
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
For the year ended 30 June 2021
for the year ended 30 June 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Current tax assets
Inventory
Total current assets
Non current assets
Equity accounted investment
Trade and other receivables
Plant and equipment
Right of use assets
Intangible assets
Total non current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Current tax liabilities
Contingent consideration
Employee benefits
Total current liabilities
Non current liabilities
Borrowings
Lease liabilities
Contingent consideration
Employee benefits
Deferred tax liability
Total non current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Profits reserve
Retained earnings
Total equity attributable to Owners of the Company
Non-controlling interests
Total equity
Note
4.5
2.1
2.2
2.1
2.4
2.5
2.6
2.3
4.3
3.1
4.3
3.1
1.5
4.1
Consolidated
2021
$’000
8,761
9,523
-
4,217
22,501
942
460
24,940
42,350
259,976
328,668
351,169
18,559
1,629
5,840
3,137
1,205
10,710
41,080
-
38,519
628
1,239
769
41,155
82,235
268,934
2020
$’000
15,072
10,442
1,202
3,949
30,665
393
181
19,111
36,514
262,165
318,364
349,029
25,504
-
2,316
-
600
9,442
37,862
18,943
36,314
1,200
1,037
1,551
59,045
96,907
252,122
506,786
(136,874)
59,501
(162,735)
266,678
2,256
268,934
506,786
(136,778)
42,535
(162,735)
249,808
2,314
252,122
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
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C
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the year ended 30 June 2021
for the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers
JobKeeper Subsidy receipts
Payments to suppliers and employees
Cash generated from operations
Income taxes paid
Net cash flows generated from operating activities
Cash flows from investing activities
Payments for plant and equipment and intangible assets
Payments for business acquisitions (including transactions costs)
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds/(Repayment) of borrowings
Interest paid on borrowings
Interest paid on closure of interest rate swaps
Payments of lease liabilities
Dividends paid
Proceeds from sale of non-controlling interest
Net proceeds from issue of ordinary shares
Net cash flows used in financing activities
Total cash flows from activities
Cash and cash equivalents at the beginning of the year
Effects of exchange rate changes on foreign currency cash flows
and cash balances
Cash and cash equivalents at end of the year
Note
4.5
Consolidated
2021
$’000
2020
$’000
183,067
7,406
(139,149)
51,324
(7,270)
44,054
146,351
3,313
(114,304)
35,360
(4,281)
31,079
(10,033)
(1,254)
(11,287)
(7,507)
(3,056)
(10,563)
(17,650)
(725)
-
(7,569)
(13,134)
-
-
(39,078)
(69,721)
(3,450)
(1,087)
(7,202)
(7,074)
1,300
77,532
(9,702)
(6,311)
10,814
15,072
-
4,281
(23)
4.5
8,761
15,072
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
76.
54
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
For the year ended 30 June 2021
Contents
Section 1:
Our financial performance
Revenue and expenses
1.1
1.2 Operating segments
Dividends
1.3
Earnings per share
1.4
Taxation
1.5
Section 3:
Our people
3.1
3.2
3.3
Employee benefits
Share-based payments
Key management personnel
Section 2:
Our operating asset base
2.1
2.2
2.3
2.4
2.5
2.6
Trade and other receivables
Inventory
Trade and other payables
Plant and equipment
Right of use assets
Intangible assets
Section 4:
Our funding structure
4.1
4.2
4.3
4.4
4.5
Share capital and reserves
Financial risk management
Borrowings
Net finance costs
Cash and cash equivalents
Section 5:
Our business portfolio
Section 6:
Other disclosures
5.1
5.2
5.3
5.4
Controlled entities
Investments accounted for using the equity method
Parent entity
Deed of cross guarantee
6.1
6.2
6.3
6.4
6.5
6.6
Auditors’ remuneration
Events occurring after the reporting period
Commitment and contingencies
Reporting entity
Basis of preparation
New standards and interpretations
55
.77
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1.1 Revenue and Expenses (continued)
As a government grant, there is an accounting policy choice whereby the organisation presents the grant income
gross from the expense or net of the related expense. The grant income has been disclosed net of the related
employee expense as the subsidy support was used to fund existing employee wages during the period.
The grant amount recognised in employee benefits expense is $5.7m (FY20: $4.9m).
1.2 Operating segments
The Group determines and presents operating segments based on information that internally is provided to and
used by the Chief Executive Officer, who is the Group’s Chief Operating Decision Maker (CODM). An operating
segment is a component of the Group that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Group’s other components.
The financial results of each operating segment are regularly reviewed by the Group’s Chief Executive Officer in
order to make decisions about resources to be allocated to the segment and assess its performance, and for which
discrete financial information is available.
Segment results that are reported to the Chief Executive Officer include items directly attributable to a segment,
as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets,
head office expenses and income tax assets and liabilities. Segment capital expenditure is the total cost incurred
during the period to acquire property, plant and equipment and intangible assets other than goodwill.
The basis of inter-segmental transfers is market pricing. Results are calculated before consideration of net
borrowing costs and tax expense. Segment assets exclude deferred tax balances and cash, which have been
included as unallocated assets.
Identification of reportable operating segments
The two geographic segments being Australia and International reflect Monash IVF Group’s reporting structure to
the CODM. Monash IVF Group considers that the two geographic segments are appropriate for segment reporting
purposes under AASB 8 “Operating Segments”. These segments comprise the following operations:
- Monash IVF Group Australia: provider of Assisted Reproductive Services, Ultrasound and other related services.
- Monash IVF Group International: provider of Assisted Reproductive Services in South East Asia.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Section 1
Our Financial Performance
This section provides information that is most relevant to understanding the financial performance of
the Group during the financial year and, where relevant, the accounting policies applied and the
critical judgements and estimates made.
1.1 Revenue and Expenses
1.4 Earnings per Share
1.2 Operating Segments
1.5 Taxation
1.3 Dividends
1.1 Revenue and Expenses
Revenue recognition
Revenue is recognised when performance obligations have been satisfied, recovery of the consideration is
probable and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the
consideration received or receivable.
Rendering of services
Revenue from rendering of services is recognised on completion of services provided. Revenue is recognised when
the customer has consumed the benefits of the service, whether on completion of a medical procedure, on supply
of drugs, or on completion of analytical tests. If payments received from patients exceed the revenue recognised,
the difference is recognised as deferred revenue.
Deferred revenue
Fees for fertility treatment paid in advance of performing the service are recognised as deferred revenue until
the time the service is rendered to the customer when the fees are recognised as revenue.
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received and the Group will comply with all attached conditions. Government grants relating to costs
are recognised in comprehensive income over the period necessary to match them with the costs that they are
intended to compensate.
In March 2020, the Australian Government announced the introduction of JobKeeper, an economic response
package to the Coronavirus pandemic. Under the JobKeeper grant, businesses impacted by the Coronavirus were
able to access a subsidy from the Government to continue paying their employees. Employers who have turnover
under $1 billion were eligible for the subsidy if their turnover reduces by more than 30 per cent relative to the
comparable prior year period for at least a month between April and September 2020. The COVID-19 impact
on the group turnover in April 2020 resulted in a greater than 30% reduction compared to April 2019 due to the
temporary suspension of IVF procedures requiring hospitalisation between 25 March and 27 April 2020 in
Australia. Accordingly, the Group was eligible to claim a fortnightly payment of $1,500 per eligible employee
from 30 March 2020 to 30 September 2020.
JobKeeper payments receivable from the ATO are recognised by a ‘for profit’ entity as a government grant as
the payment is a wage subsidy provided by the Government with the objective of keeping the organisation
connected with the economy and their workers during the COVID-19 pandemic period between April and
September 2020. The related amounts paid to employees are recognised as employee benefit expenses. The
JobKeeper payment is recognised only when there is reasonable assurance that the organisation will comply with
the conditions and that the grant will be received. The income is recognised in profit and loss matching the
employee salary expense which is what the grant was intended to compensate.
78.
56
57
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1.1 Revenue and Expenses (continued)
As a government grant, there is an accounting policy choice whereby the organisation presents the grant income
gross from the expense or net of the related expense. The grant income has been disclosed net of the related
employee expense as the subsidy support was used to fund existing employee wages during the period.
The grant amount recognised in employee benefits expense is $5.7m (FY20: $4.9m).
1.2 Operating segments
The Group determines and presents operating segments based on information that internally is provided to and
used by the Chief Executive Officer, who is the Group’s Chief Operating Decision Maker (CODM). An operating
segment is a component of the Group that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Group’s other components.
The financial results of each operating segment are regularly reviewed by the Group’s Chief Executive Officer in
order to make decisions about resources to be allocated to the segment and assess its performance, and for which
discrete financial information is available.
Segment results that are reported to the Chief Executive Officer include items directly attributable to a segment,
as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets,
head office expenses and income tax assets and liabilities. Segment capital expenditure is the total cost incurred
during the period to acquire property, plant and equipment and intangible assets other than goodwill.
The basis of inter-segmental transfers is market pricing. Results are calculated before consideration of net
borrowing costs and tax expense. Segment assets exclude deferred tax balances and cash, which have been
included as unallocated assets.
Identification of reportable operating segments
The two geographic segments being Australia and International reflect Monash IVF Group’s reporting structure to
the CODM. Monash IVF Group considers that the two geographic segments are appropriate for segment reporting
purposes under AASB 8 “Operating Segments”. These segments comprise the following operations:
- Monash IVF Group Australia: provider of Assisted Reproductive Services, Ultrasound and other related services.
- Monash IVF Group International: provider of Assisted Reproductive Services in South East Asia.
57
.79
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Segment results
2021
Total revenue – external
Monash IVF
Group Australia
$’000
172,902
Monash IVF
Group
International
$’000
10,703
Total
$’000
183,605
Adjusted EBIT (before non-recurring items)(1)
30,613
4,246
34,859
Proceeds from Jobkeeper(1)
Fertility Solutions Earn Out(1)
Sydney CBD clinic premise costs(1)
Reported EBIT
Net finance costs
Profit before income tax expense
Income tax expense
Profit for the year
Depreciation and amortisation expense
Segment assets
Acquisition of plant and equipment and intangibles
Segment liabilities
5,058
(678)
(848)
34,145
(2,350)
31,795
(9,399)
22,396
(12,252)
337,246
9,916
79,335
-
-
-
4,246
(101)
4,145
(1,036)
3,109
(640)
13,923
117
2,900
5,058
(678)
(848)
38,391
(2,451)
35,940
(10,435)
25,505
(12,892)
351,169
10,033
82,235
2020
Total revenue – external
Adjusted EBIT (before non-recurring items)(2)
Acquisition costs
Restructuring costs
Provision for patient claim
Sydney CBD clinic premise costs
Reported EBIT
Net finance costs
Finance cost - Interest rate swaps closure cost
Profit before income tax expense
Income tax expense
Profit for the year
Depreciation and amortisation expense
Segment assets
Acquisition of plant and equipment and intangibles
Segment liabilities
Monash IVF
Group
Australia
$’000
135,503
20,631
(539)
(848)
(728)
(480)
18,036
(4,510)
(1,087)
12,439
(3,481)
8,958
(10,345)
338,204
7,759
92,373
Monash IVF
Group
International
$’000
9,914
3,797
-
-
-
-
3,797
(110)
-
3,687
(885)
2,802
(655)
10,825
40
4,534
Total
$’000
145,417
24,428
(539)
(848)
(728)
(480)
21,833
(4,620)
(1,087)
16,126
(4,366)
11,760
(11,000)
349,029
7,799
96,907
(1) Non-recurring items include the receipt of Jobkeeper subsidy impact ($5,058,000 pre-tax), Sydney CBD clinic premise and commissioning costs
prior to opening in November 2020 ($848,000 pre-tax) and Fertility Solutions earn out fair value adjustment ($678,000).
(2) 2020 one-off non recurring items include transaction costs on acquisition activity including Fertility Solutions and Johor Bahru ($539,000 pre-
tax), restructuring costs ($848,000 pre-tax) and provision for certain historical patient claim in FY13 ($728,000 pre-tax) and new Sydney CBD
clinic premises costs prior to commencement of construction ($480,000 pre-tax). The Jobkeeper subsidies received in FY20 is included within
Adjusted EBIT as it supported the Business during temporary suspension of services and ramp up activities following re-commencement of
operations.
80.
58
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1.3 Dividends
Dividends during the year
Franking
Payment
Date
Per share
(cents)
2021
$’000
2020
$’000
Interim dividend in respect
of the current financial year
Fully franked
7 April 2021
2.1
8,182
4,952
Final dividend in respect of
the prior financial year
Fully franked
-
Total
Current liability – Dividend payable(1)
Paid in cash during the year
-
2.1
-
7,074
8,182
12,025
-
13,134
4,952
7,074
(1) On 1 April 2020, The Company announced the deferral of the payment of the interim dividend until 2 October 2020 which was recognised
as a liability as at 30 June 2020 and paid during FY2021. This deferral was considered a prudent measure due to the economic
environment caused by the COVID-19 pandemic.
Dividend franking account
Amount of franking credits available at 30 June
to shareholders for subsequent financial years
11,998
12,803
Monash IVF Group’s dividend policy is to target a payout ratio of between 60% and 70% of Statutory NPAT. The
level of payout ratio is expected to vary between periods depending on general operating conditions, operating
cashflow and profit, funding, strategic growth opportunities and availability of franking credits.
Subsequent to 30 June 2021, the Board has declared a fully franked 2021 final dividend of 2.1 cents per share.
Total dividend declared for FY21 is 4.2 cents. The aggregate amount of the proposed dividend expected to be
paid out of retained profits at 30 June 2021, but not recognised as a liability at year end is $8,182,332.
1.4 Earnings per share
Earnings per share
Basic earnings per share
Diluted earnings per share
Profit attributable to ordinary shareholders
Profit after income tax attributable to the ordinary shareholders used
in calculating basic and diluted earnings per share
Weighted average number of shares
Weighted average number of ordinary shares used in
calculating basic earnings per share
2021
Cents per share
6.5
6.4
2020
Cents per share
4.6
4.5
2021
$’000
25,148
2021
Number
2020
$’000
11,726
2020
Number
389,634,840
257,550,107
Adjustments for calculation of diluted earnings per share (1)
Weighted average number of ordinary shares used in calculating
diluted earnings per share
1,309,892
550,148
390,944,732
258,100,255
(1)
The calculation of the weighted average number of shares has been adjusted for the effect of share based rights granted from the date
of issue. Refer to Section 3.2 for further details.
59
.81
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1.4 Earnings per share (continued)
Basic earnings per share
The calculation of basic earnings per share has been based on profit attributable to ordinary shareholders and
weighted average number of ordinary shares outstanding.
Diluted earnings per share
The calculation of diluted earnings per share has been based on profit attributable to ordinary shareholders and
weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential
ordinary shares.
1.5 Taxation
Income Tax expense
Current tax
Deferred tax
Under/(over) provided in prior year
Total income tax expense
Numerical reconciliation of income tax expense to prima facie tax
payable
Profit before income tax expense
Tax at the Australian tax rate of 30% (2020: 30%)
Tax effect of amounts which are not deductible in calculating taxable
income:
Effect of tax rates in foreign jurisdiction
Research and development
Other items
Under/(over) provision of previous year
Income tax expense
2021
$’000
11,241
(894)
88
10,435
2020
$’000
3,867
661
(162)
4,366
35,940
10,782
16,126
4,838
(256)
(250)
71
88
10,435
(231)
(250)
171
(162)
4,366
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that
it relates to a business combination, or to items recognised directly in equity or in OCI. Current tax comprises the
expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax payable
or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the
reporting date.
82.
60
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Notes to the Consolidated Financial Statements continued
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M
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1.5 Taxation (continued)
Recognition and Measurement
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognised for the following temporary differences:
•
•
The initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries
and associates and jointly controlled entities to the extent that it is probable that they will not reverse in
the foreseeable future.
In addition, deferred tax is not recognised for taxable temporary differences arising on the initial
recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
Offsetting deferred tax
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their assets and
liabilities will be realised simultaneously.
Tax consolidation
Monash IVF Group Limited and its wholly Australian owned controlled entities are part of a tax consolidation group
under Australian taxation law. Monash IVF Group Limited is the head entity in the tax-consolidated group. Entities
within the tax consolidated group have entered into a tax funding arrangement and a tax sharing agreement with
the head entity. Under the terms of the tax funding arrangement, Monash IVF Group Limited and each of the
entities in the tax consolidated group have agreed to pay (or receive) a tax equivalent payment to (or from) the
head entity, based on the current tax liability or current tax asset of the entity.
Key estimate and judgement:
Recovery of deferred tax assets
Key estimate and judgement:
Income taxes
A deferred tax asset is recognised to the extent that it
is probable that future taxable profits will be
available against which the temporary difference can
be utilised. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be
realised.
The Group is subject to income taxes in Australia and
jurisdictions where
foreign operations.
it has
Judgement is required in determining the worldwide
provision for income taxes and in assessing whether
deferred tax balances are recognised on the statement
of financial position. Changes in circumstances will
alter expectations, which may impact the amount of
provision for income taxes and deferred tax balances
recognised.
84.
62
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Section 2
Our Operating Asset Base
This section provides information relating to the Group’s Operating Base, highlighting the primary
operating assets used and liabilities incurred to support the Group’s operating activities.
2.1 Trade and other receivables
2.4 Plant and equipment
2.2 Inventory
2.5 Right of use of assets
2.3 Trade and other payables
2.6 Intangible assets
2.1 Trade and other receivables
Current
Trade receivables
Provision for expected credit losses
Net trade receivables
Other debtors
Accrued income
Prepayments
GST receivable
Total current trade and other receivables
Non current
Other debtors
Provision for expected credit losses
2021
$’000
5,030
(831)
4,199
731
328
2,942
1,323
9,523
2020
$’000
4,183
(747)
3,436
2,431
1,060
2,761
754
10,442
460
181
The consolidated entity has recognised an expense of $84,000 (2020: $287,000) in profit or loss in respect of
impairment of receivables for the year ended 30 June 2021. The increase in provision for expected credit losses
during the year was predominately driven to reflect counterparties that have been impacted by the current
economic environment.
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised costs using the
effective interest method less provision for expected credit losses. A financial asset (including trade receivables)
not classified as at fair value through profit or loss is assessed at each reporting date to determine whether there
is any objective evidence that it is impaired. AASB 9 replaced the ‘incurred loss model’ in AASB 139 with an
‘expected credit loss’ (ECL) model. Loss allowances for trade receivables are measured at an amount equal to 12
month ECLs. When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant
and available without undue cost or effort. This includes both quantitative and qualitative information and analysis,
based on the Group’s historical experience, debtor ageing and credit assessment including forward-looking
information.
Credit Risk
Credit risk is the risk of financial loss to the Group if a patient or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Group’s trade receivables, being patients.
Patient fees for most treatments are received in advance and recognised as deferred revenue if the procedure is
yet to be performed. This reduces the risk of non-collectability. Outstanding receivables predominantly relate to
amounts owing from Medicare and storage fee patient accounts. Payment reminder notices are issued to patients
.85
63
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
2.1 Trade and other receivables (continued)
with outstanding balances at 30, 60 and 90 days. After which, collection of this debt may be handled by a
collection agency. The Group does not have any material credit risk exposure to any single receivable or group
of receivables under financial instruments entered into by the Group.
Prepayments
Payments made for the receiving of goods or services rendered in future years are recognised as a prepayment.
2.2 Inventory
Consumables – at cost
Total inventory
2021
$’000
4,217
4,217
2020
$’000
3,949
3,949
Inventories are recorded using the FIFO method and are valued at the lower of cost and net realisable value.
Inventories include medical supplies to be consumed in providing future patient services.
2.3 Trade and other payables
Current
Trade payables
Accrued expenses
Deferred revenue
Dividend payable
Total trade and other payables
2021
$’000
2,245
9,019
7,295
-
18,559
2020
$’000
3,024
10,804
6,725
4,951
25,504
Trade and other payables are carried at amortised cost and are not discounted. These amounts represent liabilities
for goods and services provided to the Group prior to the end of the financial year which are unpaid. The amounts
are unsecured and are paid in accordance with vendor terms.
2.4 Plant and equipment
Cost
Opening balance at 1 July
Additions
Acquisitions through business combinations
Disposals
Closing balance at 30 June
Accumulated depreciation and impairment losses
Opening balance at 1 July
Depreciation for the year
Acquisitions through business combinations
Disposals
Closing balance at 30 June
Carrying amount
At 1 July (Opening balance)
At 30 June (Closing balance)
86.
2021
$’000
58,169
10,033
-
-
68,202
(39,058)
(4,204)
-
-
(43,262)
19,111
24,940
2020
$’000
53,678
4,613
2,030
(2,152)
58,169
(37,155)
(3,466)
(589)
2,152
(39,058)
16,523
19,111
64
Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2021
2.4 Plant and equipment (continued)
Capital commitments
Expenditure contracted for but not recognised as liabilities:
Capital plant and equipment
2021
$’000
613(1)
2020
$’000
3,345
(1) Capital plant and equipment includes the new Melbourne, Darwin and Gold Coast fertility clinic and day hospital projects in development.
Items of plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment
losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing
the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring
the site on which they are located and capitalised borrowing costs. When parts of an item of plant and equipment
have different useful lives, they are accounted for as separate items (major components) of plant and equipment.
Gains and losses on disposal of an item of plant and equipment are determined by comparing the proceeds from
disposal with the carrying amount of plant and equipment and are recognised on a net basis within “other income”
in profit or loss. The cost of replacing part of an item of plant and equipment is recognised in the carrying amount
of the item if it is probable that the future economic benefits embodied with the part will flow to the Group and its
cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-
to-day servicing of the plant and equipment are recognised in profit or loss as incurred.
Key estimate and judgement:
Depreciation
The Group’s plant and equipment are depreciated over their useful economic lives between 2-10 years.
Depreciation methods, useful lives and residual values are reviewed at each reporting date. Depreciation is
recognised in profit or loss on a straight line basis over the estimated useful lives of each part of an item of plant
and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits
embodied in the asset.
2.5 Right of Use Assets
Leases as lessee
$’000
Cost
Opening balance at 1 July
Additions / modifications
Disposals
Closing balance at 30 June
Accumulated depreciation
Opening balance at 1 July
Depreciation for the year
Disposals
Closing balance at 30 June
Carrying amount
At 1 July (Opening balance)
At 30 June (Closing balance)
Buildings
2021
Equipment
Total
57,705
12,397
(1,780)
68,322
(22,566)
(6,323)
1,718
(27,171)
1,770
59,475
- 12,397
(1,780)
-
70,092
1,770
(395)
(176)
-
(571)
(22,961)
(6,499)
1,718
(27,742)
35,139
41,151
1,375
1,199
36,514
42,350
65
.87
Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
2.5 Right of Use Assets (continued)
$’000
Cost
Opening balance at 1 July
Recognition of right-of-use asset on initial application of
AASB16
Adjusted Opening balance at 1 July
Additions / modifications
Acquisitions through business combinations
Disposals
Closing balance at 30 June
Accumulated depreciation
Opening balance at 1 July
Recognition of right-of-use asset on initial application of
AASB16
Adjusted Opening balance at 1 July
Depreciation for the year
Disposals
Closing balance at 30 June
Carrying amount
At 1 July (Adjusted opening balance)
At 30 June (Closing balance)
Buildings
2020
Equipment
Total
-
46,143
-
- 46,143
-
46,143
9,469
2,132
(39)
57,705
-
(17,360)
(17,360)
(5,245)
39
(22,566)
-
1,770
-
-
1,770
46,143
11,239
2,132
(39)
59,475
-
-
- (17,360)
-
(395)
-
(395)
(17,360)
(5,640)
39
(22,961)
28,783
35,139
-
1,375
28,783
36,514
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use
asset is initially measured at cost less any accumulated depreciation and impairment losses and adjusted for certain
remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or if
the rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its
incremental borrowing rate as the discount rate.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by the lease
payment made. It is remeasured when there is a change in future lease payments arising from a change in an
index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee,
or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to
be exercised or a termination option is reasonably certain not to be exercised. The Group has applied judgement
to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The
assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which
significantly affects the lease liabilities and right-of-use assets recognised.
The Group leases property and equipment. The leases typically run for a period of between one to ten years,
with an option to renew the lease after this date. Lease payments are renegotiated at periods to reflect market
rentals. The Group has elected not to recognise right of use assets and lease liabilities for short term and/or low
value assets such as IT and office equipment.
88.
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Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
2.5 Right of Use Assets (continued)
Amounts recognised in profit and loss
Depreciation on right of use assets
Interest on lease liabilities
Expenses relating to low value assets
Amounts recognised in statement of cash flows
Payments of lease liabilities
Extension options
2021
$’000
6,499
1,386
89
7,569
2020
$’000
5,640
1,046
77
7,202
Some leases contain extension options exercisable by the Group up to one year before the end of the non-
cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to
provide operational flexibility. The extension options held are exercisable by the Group and not by the lessors.
The Group assesses at lease commencement date whether it is reasonably certain to exercise the extension options.
The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or
significant changes in circumstances within its control. The Group has estimated that the potential future lease
payments, should it exercise the extension option, would result in an increase in lease liability of $5.1 million.
2.6 Intangible assets
$’000
2021
Net book value
Balance at 1 July 2020
Amortisation expense
Balance at 30 June 2021
At 30 June 2021
Cost
Accumulated amortisation and
impairment losses
Balance at 30 June 2021
2020
Net book value
Balance at 1 July 2019
Additions
Acquisitions through business
combinations
Amortisation expense
Balance at 30 June 2020
At 30 June 2020
Cost
Accumulated amortisation and
impairment losses
Balance at 30 June 2020
Software
Goodwill
Software
Trademark
Total
233,169
-
233,169
233,169
-
233,169
229,108
-
4,061
-
233,169
233,169
-
233,169
9,151
(2,189)
6,962
14,046
(7,084)
6,962
8,151
2,894
-
(1,894)
9,151
14,046
(4,895)
9,151
19,845
-
19,845
19,845
-
19,845
19,845
-
-
-
19,845
19,845
-
19,845
262,165
(2,189)
259,976
267,060
(7,084)
259,976
257,104
2,894
4,061
(1,894)
262,165
267,060
(4,895)
262,165
Software has a finite useful life and is carried at cost less accumulated amortisation and impairment losses. The
cost of system development, including purchased software, is capitalised and amortised over the estimated useful
life, being three to eight years. Amortisation methods, useful lives and residual values are reviewed at each
financial year end and adjusted if appropriate.
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
2.6 Intangible assets (continued)
International Financial Reporting Standards Interpretations Committee final agenda decisions not yet adopted
The International Financial Reporting Standards Interpretations Committee (IFRIC) issued a final agenda decision,
Configuration or customisation costs in a cloud computing arrangement. The decision discusses whether configuration
or customisation expenditure relating to cloud computing arrangements is able to be recognised as an intangible
asset and if not, over what time period the expenditure is expensed.
The Group’s accounting policy has historically been to capitalise all costs related to cloud computing arrangements
as intangible assets in the Statement of Financial Position. The adoption of this agenda decision could result in a
reclassification of these intangible assets to either a prepaid asset in the Statement of Financial Position and/or
recognition as an expense in the Statement of Comprehensive Income, impacting both the current and/or prior
periods presented.
As at 30 June 2021, the Group has not adopted this IFRIC agenda decision. The impact of the change is not
reasonably estimable as the Group has yet to complete its assessment of the impact of the IFRIC agenda decision.
The Group expects to adopt this IFRIC agenda decision in its half year financial statements ending on 31 December
2021.
Trademark
Trademarks are reported at historical cost less impairment. Trademarks have an indefinite useful life where there
is no expiry and no foreseeable limit on the period of time over which these assets are expected to contribute to
the cash flows of the Group. Similar to goodwill, these are tested for impairment annually.
Goodwill
Goodwill on consolidation represents the excess of the cost of an acquisition over the fair value of the Group’s
share of net identifiable assets of the acquired entities at the date of acquisition. Goodwill on the acquisition of
subsidiaries is included in intangible assets. Goodwill is measured at cost less accumulated impairment losses.
Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it
might be impaired.
Impairment testing
Goodwill and other indefinite life intangible assets become impaired when their carrying value exceeds their
recoverable amount. Recoverable amount is the greater of fair value less costs to sell or value in use. In determining
the recoverable amount, judgments and assumptions are made in the determination of likely net sale proceeds or
in the determination of future cash flows which support a value in use. Specifically, with respect to future cash
flows, judgments are made in respect to the quantum of those future cash flows and the discount rates (cost of
capital and debt) applied to determining the net present value of these future cash flows.
The carrying amounts of the Group’s non financial assets are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the
smallest group of assets that generates cash inflows of other assets or groups of assets (the ‘cash-generating’ units).
The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its value in use and its fair
value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset or CGU.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated
first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amount
of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss is reversed only to the
extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined,
net of depreciation and amortisation, if no impairment loss had been recognised.
90.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
2.6 Intangible assets (continued)
The following CGUs were tested for impairment during the year:
Goodwill and trademark allocated to:
Australia
Ultrasound
International
2021
$’000
219,030
28,232
5,752
253,014
2020
$’000
219,030
28,232
5,752
253,014
Impairment testing assumptions
The recoverable amount of a CGU is based on value-in-use calculations. The following key assumptions were
utilised for the impairment testing:
-
The respective discount rate was a pre-tax measure based on the rate of 10 year Government bonds issued
by the Australian and Malaysian Government respectively in the relevant market, adjusted for a risk premium
to reflect the increased risk of investing in equities generally and the systemic risk of the specific CGU. A pre-
tax discount rate of 10.4% (FY20: 10.5%) for the Australian CGU, 10.4% (FY20: 11.0%) for the Ultrasound
CGU and 11.1% (FY20: 10.5%) for the International CGU was applied in determining the recoverable
amount. The discount rate and related risk factors also had regard to the current COVID-19 environment.
- Cash flow forecasts are based on the Board-approved FY22 budget, projected for four years plus a terminal
value. The FY22 budget reflects management’s best estimate of forecast operating performance having
regard to the IVF markets in Australia and Malaysia, anticipated ultrasound activity and economic
uncertainties during and post the COVID-19 pandemic.
- A long-term growth rate into perpetuity of 2.5% (FY20: 2.5%-3.0%) has been determined based on an
assessment of historical growth rates, expectations of future growth rates and market specific dynamics.
Impact of possible changes in key assumptions
All CGU’s in the Group have been tested for impairment and have met their required hurdle rates to support the
current carrying values. Any reasonable possible change to relevant assumptions and inputs would not result in
the recoverable amount being lower than the carrying amount.
Result of Impairment testing
The recoverable amount of all CGU’s are deemed recoverable.
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Section 3
Our People
This section provides financial insight into employee reward and recognition for creating a high
performance culture and the Group’s ability to attract and retain talent. This section is to be read in
conjunction with the Remuneration Report, as set out in the Directors Report.
3.1 Employee benefits
3.3 Key management personnel
3.2 Share-based payments
3.1 Employee benefits
Current liability
Long service leave
Annual leave
Total current employee benefits
Non current liability
Long service leave
Total non current employee benefits
Total employee benefits provision
Provision for employee benefits
2021
$’000
5,483
5,227
10,710
1,239
1,239
11,949
2020
$’000
4,021
5,421
9,442
1,037
1,037
10,479
Liabilities arising in respect of wages and salaries, annual leave and any other employee benefits are expected to
be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration
rates which are expected to be paid when the liability is settled. All other employee benefits are measured at
their present value of the estimated future cash outflow to be made in respect of services provided by the employees
up to the reporting date. The discount rate is the yield at the reporting date on corporate bonds issued by the
relevant markets that have maturity dates approximating the terms of the Group’s obligations.
3.2 Share-based payments
Senior executives’ long-term incentive plan
The Group will provide benefits to certain employees in the form of share-based payment options and/or
performance rights. The fair values of these instruments granted under the plans are recognized as an employee
benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognized
over the period during which the employee becomes unconditionally entitled to the instruments.
Fair value is measured at grant date using a combination of Binomial tree and Monte-Carlo Simulation models, for
the respective performance hurdles. The valuation was performed by an independent valuer which models the
future security price.
The fair value of the instruments granted excludes the impact of any non-market vesting conditions. Non-market
vesting conditions are included in assumptions about the number of instruments that are expected to become
exercisable. At each reporting date, the entity revises its estimate of the number of instruments that are expected
to become exercisable.
The employee benefit expense recognised each period takes into account the most recent estimate. The impact of
the revision to original estimates, if any, is recognised in profit and loss with a corresponding adjustment to equity.
Under the Company’s Long Term Incentive (“LTI”) Plan, awards constituting share appreciation rights, performance
rights or options, or any different class or category of award on such terms as the Board determines, may be
offered to eligible persons selected by the Directors. Key management personnel and other senior management
are eligible to participate under the LTI Program.
92.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
3.2 Share-based payments (continued)
The senior executive LTI are performance rights plans with vesting rights dependent upon the satisfaction of pre-
defined performance hurdles and continuous employment. Current performance hurdles are based on achievement
of pre-defined Earning Per Share (“EPS”) Hurdle and a Total Shareholder Return (“TSR”) Hurdle over a three year
performance period. The Board may amend the performance hurdles or specify a different performance hurdle(s)
if it considers it necessary. For further detail on the specific LTI plans, refer to the Remuneration Report.
Long term incentive program (equity settled)
A description of the equity plans applicable during the year are described below:
Grant date
Vesting conditions
(2021 Plan)
16 October 2020
(2020 Plan)
16 October 2019
(2019 Plan)
20 December 2018
(2018 Plan)
29 January 2018
(2017 Plan)
17 March 2017
EPS - Subject to meeting certain EPS hurdles and 3 year service period to 30 June 2023
TSR - Subject to Total Shareholder Return hurdles and a 3 year service period to the
11th trading day after the FY23 results announcement
EPS - Subject to meeting certain EPS hurdles and 3 year service period to 30 June 2022
TSR - Subject to Total Shareholder Return hurdles and a 3 year service period to the
11th trading day after the FY22 results announcement
EPS - Subject to meeting certain EPS hurdles and 3 year service period to 30 June 2021
TSR - Subject to Total Shareholder Return hurdles and a 3 year service period to the
11th trading day after the FY21 results announcement
EPS - Subject to meeting certain EPS hurdles and 3 year service period to 30 June 2020
TSR - Subject to Total Shareholder Return hurdles and a 3 year service period to the
11th trading day after the FY20 results announcement
EPS - Subject to meeting certain EPS hurdles and 3 year service period to 30 June 2019
TSR - Subject to Total Shareholder Return hurdles and a 3 year service period to the
11th trading day after the FY19 results announcement
71
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
3.2 Share-based payments (continued)
Key estimate and judgement: Share-based payments
As a result of the combination of non-market (EPS) and market (TSR) vesting conditions, the fair value of the share
rights plan has been measured using Binomial tree and Monte Carlo simulation respectively. The inputs used in the
measurement of the fair values at grant date of the equity-settled share based payment plans were as follows:
Fair value at grant date (EPS condition)
Fair value at grant date (TSR condition)
Share price at grant date
Expected volatility – Monash IVF
Expected volatility – ASX 300 Healthcare Index
Expected life (years)
Expected dividends
Risk free interest rate (based on government bonds)
2021
$0.61
$0.32
$0.62
40%
16%
6
0.00%
0.13%
2020
$0.94
$0.46
$0.94
35%
15%
6
6.0%
0.83%
2019
$1.00
$0.45
$1.00
30%
15%
6
6.0%
1.88%
2018
$1.19
$0.49
$1.36
37%
14%
5
5.5%
2.13%
Expected volatility has been based on an evaluation of the historical volatility of the Company’s share price,
particularly over the historical period commensurate with the expected term. The expected term of the instruments
has been based on historical experience and general instrument holder behavior.
Reconciliation of outstanding performance rights
The number of performance rights under the company’s long-term incentive plan were as follows:
2021
Grant Date
29 Jan 2018
20 Dec 2018
16 Oct 2019
16 Oct 2020
Expiry Date
30 June 2020
30 June 2021
30 June 2022
30 June 2023
Balance
at 1July
2020
47,605
134,531
368,012
-
550,148
Granted
during the
year
-
-
-
901,521
901,521
Lapsed
during the
year
(47,605)1
(94,172)2
-
-
(141,777)
Forfeited
during the
year
-
-
-
-
-
Balance at
Vested
30 June
during the
2021
year
-
-
40,359
-
368,012
-
-
901,521
- 1,309,892
(1)
(2)
TSR vesting conditions for performance rights granted in FY18 were not satisfied therefore these rights lapsed.
EPS vesting conditions for performance rights granted in FY19 were not satisfied therefore these rights lapsed.
2020
Grant Date
17 Mar 2017
29 Jan 2018
20 Dec 2018
16 Oct 2019
Expiry Date
30 June 2019
30 June 2020
30 June 2021
30 June 2022
Balance
at 1July
2019
19,447
95,210
207,997
-
322,654
Granted
during the
year
-
-
-
471,055
471,055
Lapsed
during the
year
(19,447)1
(47,605)2
-
-
(67,052)
Forfeited
during the
year
-
-
(73,466)3
(103,043)3
(176,509)
Balance at
Vested
30 June
during the
2020
year
-
-
-
47,605
- 134,531
- 368,012
550,148
-
(1)
(2)
(3)
TSR vesting conditions for performance rights granted in FY17 were not satisfied therefore these rights lapsed.
EPS vesting conditions for performance rights granted in FY18 were not satisfied therefore these rights lapsed
The performance rights for Brett Comer (Chief Operating Officer) were forfeited due to resignation and departure on 27 March 2020.
94.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
3.3 Key management personnel
Compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
Total key management personnel compensation
2021
$
2,483,141
128,914
114,476
2,726,531
2020
$
2,194,168
199,074
5,971
2,399,213
For further information on key management personnel refer to the Remuneration Report.
Transactions with key management personnel and related parties
Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
73
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Section 4
Our Funding Structure
This section provides information relating to the Group’s capital structure and its exposure to
financial risk, how they affect the Group’s financial position and performance, and how the risks are
managed.
The Directors determine the appropriate capital structure of Monash IVF, specifically how much is
raised from the shareholders (equity) and how much is borrowed from financial institutions (debt) in
order to finance the current and future activities of the Group. The Directors review the Group’s
capital structure regularly and do so in the context of the Group’s ability to continue as a going
concern, to invest in opportunities that grow the business and enhance shareholder value.
4.1 Share capital and reserves
4.4 Net finance costs
4.2 Financial risk management
4.5 Cash and cash equivalents
4.3 Borrowings
4.1 Share capital and reserves
Opening balance at 1 July 2019
Shares issued
Capital raising fees
Closing balance at 30 June 2020
Opening balance at 1 July 2020
Closing balance at 30 June 2021
Number of shares
issued
235,785,884
153,848,956
-
389,634,840
389,634,840
389,634,840
$’000
428,757
80,001
(1,972)
506,786
506,786
506,786
Ordinary shares
Ordinary shares are classified as share capital. Ordinary shares entitle the holder to participate in dividends and
the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held.
Ordinary shares entitle the holder to one vote, either in person or by proxy, at a meeting of the Company.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net
of tax, from the proceeds.
Capital management
The Group’s policy is to maintain a strong capital base so as to maintain investor and market confidence and to
sustain future growth of the business. Management monitors the return on capital as well as the level of dividends
to ordinary shareholders. The Board of Directors seeks to maintain a balance between the higher returns that might
be possible with higher levels of borrowings and the advantages and security afforded by a sound capital structure.
In order to maintain an optimal capital structure, the Group may amend the amount of dividends declared and
paid, return capital to shareholders or increase borrowings or equity to fund growth and future acquisitions.
Other equity reserve
The other equity reserve represents the difference between the issued capital in Healthbridge Enterprises Pty Ltd
and Monash IVF Group Ltd on 26 June 2014, being the date Monash IVF Group Ltd acquired Healthbridge
Enterprises Pty Ltd.
Profits reserve
The profits reserve comprises the transfer of net profit for the period and characterises profits available for
distribution as dividends in future periods.
96.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
4.1 Share capital and reserves (continued)
Share option reserve
Share option reserve represents the grant-date fair value of equity-settled share-based payment awards granted
to employees, which is generally recognised as an expense, with corresponding increase in equity over the vesting
period of the awards.
Hedge reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow
hedging instruments related to highly probable forecast transactions. The hedging reserve is used to record gains
or losses on derivatives that are designated and qualify as cash flow hedges and that are recognised in OCI.
Amounts are reclassified to profit or loss when the associated hedged transaction affects profit or loss.
Foreign currency translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial
statements of foreign operations.
Escrow arrangements
The following ordinary shareholders have entered into voluntary escrow arrangements in relation to certain
ordinary shares they hold in Monash IVF Group Ltd. An ‘escrow’ is a restriction on sale, disposal, or encumbering
of, or certain other dealings in respect of, the Shares concerned for the period of the escrow, subject to exceptions
set out in the escrow arrangement.
Doctors (1) (2)
Sydney Ultrasound for Women(3)
Total
30 June 2021
Number of
shares subject
to escrow (m)
14.3
1.2
15.5
Escrowed
shares (as a %
of shares on
issue
3.7%
0.3%
4.0%
Number of
shares subject
to escrow (m)
15.0
1.5
16.5
30 June 2020
Escrowed shares
(as a % of
shares on issue)
Escrowed shares
(as a %
3.8%
0.4%
4.2%
FY21 Includes 1.0m shares subject to escrow held by Richard Henshaw (Executive Director) (FY20:1.0m shares)
(1)
(2) Doctors
The escrow applied to a pre-IPO Doctor was calculated by reference to the aggregate value of that person’s pre-
reorganisation equity interests in Healthbridge Enterprises Pty Ltd as follows:
Shares equivalent to 10% of a Doctor’s interest prior to the re-organisation were held in short-term escrow, with
3.33% released each year from escrow on the first trading day in Shares following the Company’s FY15, FY16
and FY17 financial results announcements to the ASX. This concluded the release of the pre-IPO doctor short-term
escrow.
Shares held in long-term escrow are subject to the following conditions:
1.
Shares equivalent to 20% of a Doctor’s interest prior to the re-organisation will be released when the
Doctor reaches the age of 63. These shares may be otherwise released from escrow in the following
circumstances:
-
for Doctors who were aged 63 or older at the time of re-organisation or who turned 63 within two
years of Completion, these shares can be released from escrow from June 2016; or
- where a Doctor becomes a ‘relocated leaver’ (as described below), these Shares can be released
from escrow five years after the date that they become a ‘relocated leaver’; or
- where a Doctor dies or leaves the Group as a result of becoming permanently disabled or seriously
disabled, these shares can be released from escrow on the date of the relevant occurrence (as resolved
by the Board acting reasonably); or
if the Board determines to release the shares from escrow earlier.
-
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
4.1 Share capital and reserves (continued)
2.
Shares equivalent to 20% of a Doctor’s interest prior to re-organisation can be released from escrow:
-
on retirement by the Doctor from the ARS industry (provided a Doctor must have used their best
endeavours to transition their practice to another Doctor to the satisfaction of the Board); or
if the Doctor becomes a ‘good leaver’ or a ‘relocated leaver’ (as described below); or
five years after the Doctor leaves Monash IVF Group in other circumstances.
-
-
Doctors will be able to sell any non-escrowed Shares at any time, subject to complying with insider trading
restrictions and the Group’s Securities Trading Policy.
The escrow arrangements describe the circumstances in which a Doctor is a ‘good leaver’ or a ‘relocated leaver’ in
the following manner:
(a) A Doctor is a ‘good leaver’ where:
-
-
they leave the Group as a result of death, serious disability or permanent incapacity through ill health
(as determined by the Group’s Board, acting reasonably); or
they or the Group terminates the Doctor’s contract in specific circumstances; or
The Board determines, in its discretion, that the Doctor is a ‘good leaver’.
(b) A Doctor is a ‘relocated leaver’ if they terminate their contract and the Board is satisfied that:
-
-
-
the Doctor genuinely intends to relocate permanently to a place which is more than 100 km from any
clinic operated by the Group or any of its subsidiaries; and
the Doctor also intends to provide Assisted Reproductive Services in the place the Doctor is relocating
to; and
the Doctor has used their best endeavours to transition their practice to another Doctor at the Group.
(3)
Escrow for Sydney Ultrasound for Women (SUFW)
All shares issued to the vendors of SUFW are escrowed such that 53.3% of the shares issued were escrowed until
the first trading day after the release of the FY16 results. 3.3% were escrowed until the first trading day after the
release of the FY17 results and 3.3% are escrowed until the first trading day after the release of the FY18 results.
The remaining 40.1% is subject to escrow and is consistent with the Doctors above in points 1 and 2. Doctors will
be able to sell any non-escrowed Shares at any time, subject to complying with insider trading restrictions and the
Group’s Securities Trading Policy. The escrow arrangements describing the circumstances in which a SUFW Doctor
is a ‘good leaver’ or a ‘relocated leaver’ is the same as described above.
4.2 Financial risk management
The Group has exposure to the following risks from its use of financial instruments:
Liquidity risk;
Foreign exchange risk;
Interest risk; and
-
-
-
- Market risk.
This note presents information about the Group’s exposure to each of the above risks, objectives, policies and
processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are
included throughout this financial report.
98.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
4.2 Financial risk management (continued)
Risk management policies are in place to identify and analyse the risks faced by the Group, to set appropriate
risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its
recruitment, training and management standards and procedures, aims to develop a disciplined and constructive
control environment in which all employees understand their roles and obligations.
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. The group manages this risk through the following mechanisms:
-
Preparing forward-looking financial analysis in relation to its operational, investing and financing
activities;
- Monitoring undrawn credit facilities;
- Obtaining funding from a variety of sources;
- Maintaining a reputable credit profile;
- Managing credit risk related to financial assets;
- Only investing surplus cash with major financial institutions; and
-
Comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting arrangements, subject to the Group meeting future undertakings.
Carrying
amount
$’000
Total
Contractual
cash flows
$’000
Within 1
year
1-5 years
Over
5 years
$’000
$’000
$’000
-
-
(14,971)
-
(14,971)
Over 5
years
1,629
18,559
44,359
1,833
66,380
(1,629)
(18,559)
(48,704)
(1,833)
(70,725)
(1,629)
(18,559)
(6,412)
(1,205)
(27,805)
-
-
(27,321)
(628)
(27,949)
Carrying
amount
$’000
Total
Contractual
cash flows
$’000
Within 1 year
1-5 years
$’000
$’000
$’000
19,279
25,503
38,631
1,800
85,213
(19,964)
(25,503)
(42,417)
(1,800)
(89,684)
(457)
(25,503)
(2,545)
(600)
(29,105)
(19,507)
-
(20,360)
(1,200)
(41,067)
-
-
(19,512)
-
(19,512)
2021
Non-derivative financial
liabilities
Secured bank loans
Trade and other payables
Lease liabilities
Contingent consideration
2020
Non-derivative financial
liabilities
Secured bank loans
Trade and other payables
Lease liabilities
Contingent consideration
Foreign exchange risk
The Group is not exposed to material levels of foreign currency risk at the reporting date or during the financial
year.
77
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
4.2 Financial risk management (continued)
Interest rate risk
The consolidated entity’s main interest rate risk arises from long-term borrowings. Borrowings issued at variable
rates expose the consolidated entity to interest rate risk. Interest rate risk may be managed using a mix of floating
rate debt and fixed rate instruments. Interest rate swaps may be used to mitigate interest rate risk on floating
rate debt. Interest rate swaps are not entered into for trading purposes and are not classified as held for trading.
At 30 June 2021, there was no fixed interest rate exposure following the closure or maturity of the $50 million of
interest rate swaps during FY20. There were no fixed interest rate swaps in place at 30 June 2021 (FY20: nil).
The interest rate profile of the Group’s interest-bearing financial instruments as reported to management of the
Group is as follows including the impact of hedging instruments:
Fixed rate instruments
Financial assets
Financial liabilities
Variable rate instruments
Financial assets
Financial liabilities
2021
$’000
1,754
(44,359)
(42,605)
7,007
(1,629)
5,378
2020
$’000
2,004
(38,631)
36,627
13,068
(19,279)
(6,211)
Cash flow sensitivity analysis for variable rate instruments
A reasonable possible change of a 100 basis points in interest rates at the reporting date would have increased
/(decreased) equity and profit or loss by $53,780 (FY20: $62,110). This assumes that all other variables remain
constant.
Market risk – Operational risk
The Group is exposed to legislative and/or Government policy changes to funding for IVF and related healthcare
services which may impact patient out-of-pocket costs resulting in potentially higher or lower demand.
4.3 Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method. Where there is an
unconditional right to defer settlement of the liability for at least twelve months after the reporting date, the loans
and borrowings are classified as non-current.
100.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
4.3 Borrowings (continued)
Total loan facilities available to the Group in Australian dollars
$’000
Syndicated Debt facility(1)
Working capital facility
Accordion facility(2)
Total loan facilities
Borrowings
Borrowings
Capitalised finance facility fees
Total borrowings
2021
2020
Limit
Utilised
Limit
Utilised
40,000
5,000
40,000
85,000
110,000
5,000
40,000
155,000
500
1,129
-
1,629
1,629
-
1,629
16,000
3,279
-
19,279
19,279
(336)
18,943
In August 2020, the Group right sized and reduced the $110m Syndicated Debt Facility to $40m.
(1)
(2) An un-committed $40m accordion facility for acquisition and capital expenditure purposes.
In December 2018, the Group amended and extended the syndicated debt facility, working capital facility and
accordion facility with a maturity date of January 2022. The banking facilities are secured via a first ranking
security over substantially all of the Group’s entities. The Group is subject to certain financial undertakings under
the banking facilities. As at 30 June 2021, the Group is compliant with its financial undertakings.
As at 30 June 2021, the Group had $3,165,022 of bank guarantees in place (FY20: $2,969,000).
Reconciliation of movements of liabilities arising from financing activities
$’000
Loans
Lease liabilities
Balance
at 1 July
2020
19,279
38,631
Additions
Principal
repayments
11,000
13,297
(28,650)
(7,569)
Total interest bearing loans and borrowings
57,910
24,297
(36,219)
Other Balance at
30 June
2021
-
-
-
1,629
44,359
45,988
Recognition and measurement
Derivative financial instruments, including hedge accounting
The Group may hold derivative financial instruments to hedge certain floating interest rate exposures. On initial
designation of the hedge, the Group formally documents the relationship between the hedging instruments and
hedging items, including the risk management objectives and strategy in undertaking the hedge transaction, together
with the methods that will be used to assess the effectiveness of hedging relationship. The Group makes an
assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging
instruments are expected to be “highly effective” in offsetting the change in the cash flows of the respective hedged
items during the period for which the hedge is designated, and whether the actual results of each hedge are within
a range of 80-125 percent. For a cash flow hedge of a forecast transaction, the transaction should be highly
probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported
profit or loss.
Derivatives are recognised initially at fair value; attributed transaction costs are recognised in profit or loss as
incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes to therein are
accounted for as described below. All derivative financial instruments are valued using unadjusted quoted prices in
active markets for identical assets or liabilities.
79
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
4.3 Borrowings (continued)
Cash flow hedge
Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognised in
OCI and presented in the hedging reserve in equity. To the extent that the hedge is ineffective, changes in fair
value are recognised in profit or loss.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or
exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain
or loss previously recognised in OCI and presented in the hedge reserve in equity remains there until the forecast
transaction affects profit or loss. If the forecast transaction is no longer expected to occur, then the balance in OCI
is recognised immediately in profit or loss. In other cases the amount recognised in OCI is transferred to profit or
loss in the same period that the hedged item affects profit or loss.
4.4 Net Finance Costs
Finance income
Interest income
Finance costs
Interest expense
Interest expense on closure of swaps
Amortisation of borrowing costs(1)
Interest on lease liabilities
Total finance costs
Net finance costs
2021
$’000
1
725
-
341
1,386
2,452
2,451
(1)
Includes interest and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.
4.5 Cash and cash equivalents
Cash at bank
Short-term bank deposits
Total cash and cash equivalents
Reconciliation of profit after income tax to net
cash inflow from operating activities
Profit for the period
Adjustments:
Depreciation and amortisation
Net finance cost included in financing activities
Provision for Fertility Solutions Earn-out
Provision for expected credit losses
Other
Operating profit before changes in working capital and provisions
Change in net operating assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventory
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions and employee benefits
Increase/(decrease) in income and deferred taxes
Net cash from operating activities
102.
2021
$’000
7,007
1,754
8,761
2021
$’000
25,505
12,891
1,065
678
84
390
40,613
640
(268)
(1,958)
1,470
3,557
44,054
2020
$’000
11
3,272
1,087
313
1,046
5,718
5,707
2020
$’000
13,068
2,004
15,072
2020
$’000
11,760
11,000
5,707
-
287
1,224
29,978
(3,811)
34
5,092
987
(1,201)
31,079
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Section 5
Our Business Portfolio
This section provides further insight into the legal structure and group of subsidiary companies.
5.1 Controlled entities
5.3 Parent equity
5.2 Investments accounted for using the equity
method
5.1 Controlled entities
Parent entity
Monash IVF Group Limited
Controlled entities
Healthbridge Enterprises Pty Ltd
Monash IVF Group Acquisitions Pty Ltd
Healthbridge IVF Holdings Pty Ltd
Healthbridge Shared Services Pty Ltd
Healthbridge Repromed Pty Ltd
Repromed Finance Pty Ltd
Repromed Holdings Pty Ltd
Repromed NZ Holding Pty Ltd
Repromed Australia Pty Ltd
Adelaide Fertility Centre Pty Ltd
Monash IVF Holdings Pty Ltd
Monash IVF Finance Pty Ltd
Monash IVF Pty Ltd
Monash Reproductive Pathology and Genetics Pty Ltd
Monash Ultrasound Pty Ltd
Monash IVF Auchenflower Pty Ltd
Yoncat Pty Ltd
My IVF Pty Ltd
ACN 169 060 495 Pty Ltd
Palantrou Pty Ltd
ACN 166 701 819 Pty Ltd
ACN 166 702 487 Pty Ltd
KL Fertility & Gynaecology Centre Sdn. Bhd.
KL Fertility Daycare Sdn. Bhd.
Sydney Ultrasound for Women Partnership
Ultrasonic Diagnostic Services Trust No.2
ACN 604 384 661 Pty Ltd
Ultrasonic Diagnostic Services Pty Ltd
Fertility Australia Pty Ltd
Fertility Australia Trust
MVF Sunshine Coast Pty Ltd
Hobart IVF Pty Ltd
5.4 Deed of cross guarantee
Place of business/country
Australia
Place of business
/country
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Malaysia
Malaysia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Ownership interest
2021
2020
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
90%
100%
100%
100%
100%
100%
100%
100%
100%
57.4%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
90%
100%
100%
100%
100%
100%
100%
100%
100%
57.4%
.103
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
5.1 Controlled entities (continued)
Controlled entities
Gold Coast Ultrasound for Women Pty Ltd
Monash IVF Asia Pte Ltd
Monash IVF South Malaysia Pte Ltd
Place of business
/country
Australia
Singapore
Malaysia
5.2 Investments accounted for using the equity method
2020
Ownership interest
2021
51%
90%
62%
51%
90%
62%
Principal
Activity
Ownership Interest
%
Share of Net Profit/Loss
$’000
Fertility Services
2021
25%
2020
25%
2021
55
2020
205
Name of company
Compass Fertility
5.3 Parent entity
As at 30 June 2021 and throughout the financial year ending on that date, the parent company of the Group
was Monash IVF Group Limited.
Results of parent entity
Profit after tax
Other comprehensive income
Total comprehensive income
Financial position of parent entity at year end
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Total equity of the parent entity comprising of:
Share capital
Retained earnings
Total equity
2021
$’000
13,977
-
13,977
-
494,365*
6,006
27,153
521,518
506,786
14,732
521,518
2020
$’000
11,189
-
11,189
2,472
541,171*
4,952
25,447
515,724
506,786
8,938
515,724
*Includes Intercompany balances with its subsidiaries, as at 30 June 2021, these balances are not expected to be settled within twelve
months.
Expenditure contracted for but not recognised as liabilities
Parent Entity
Capital plant and equipment
2021
$’000
613
2020
$’000
3,345
Parent entity guarantees in respect of the debts of its subsidiaries
The parent entity has entered into a Deed of cross guarantee with the effect that the Company guarantees debts
in respect of certain subsidiaries
104.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
5.4 Deed of cross guarantee
The below listed entities are parties to a Deed of cross guarantee under which each company guarantees the debts
of the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement to
prepare a financial report and directors’ report under ASIC Corporations (Wholly Owned Companies) Instrument
2016/785 issued by the Australian Securities and Investments Commission.
The below companies represent the parties to the Deed of cross guarantee (‘closed group’):
- Monash IVF Group Ltd
- Monash IVF Group Acquisition Pty Ltd
Healthbridge Enterprises Pty Ltd
-
Healthbridge Shared Services Pty Ltd
-
Healthbridge IVF Holdings Pty Ltd
-
Healthbridge Repromed Pty Ltd
-
ACN 169060495 Pty Ltd
-
ACN 166701819 Pty Ltd
-
- My IVF Pty Ltd
- Monash IVF Holdings Pty Ltd
Palantrou Pty Ltd
-
ACN 166702487 Pty Ltd
-
Repromed Finance Pty Ltd
-
- Monash IVF Finance Pty Ltd
Repromed Holdings Pty Ltd
-
- Monash IVF Pty Ltd
-
-
- Monash Ultrasound Pty Ltd
- Monash Reproductive Pathology & Genetics Pty Ltd
- Monash IVF Auchenflower Pty Ltd
Yoncat Pty Ltd
-
Adelaide Fertility Centre Pty Ltd
-
Sydney Ultrasound for Women Partnership
-
Ultrasonic Diagnostic Services Trust No. 2
-
ACN 604384661 Pty Ltd
-
Ultrasonic Diagnostic Services Pty Ltd
-
Fertility Australia Pty Ltd
-
Fertility Australia Trust
-
- MVF Sunshine Coast Pty Ltd
Repromed Australia Pty Ltd
Repromed NZ Holding Pty Ltd
An extract of the consolidated statement of comprehensive income and consolidated statement of financial
position, comprising the Company and controlled entities which are party to the Deed of cross guarantee, after
eliminating all transactions between parties to the Deed of cross guarantee is set out as follows:
.105
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
5.4 Deed of cross guarantee (continued)
Extract of the statement of profit or loss and other comprehensive income
Profit before tax
Income tax expense
Net profit after tax
Other comprehensive income, Items that will not be reclassified to profit or loss:
Cash flow hedges
Tax on cash flow hedges
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Summary of movements in retained earnings
Opening balance at 1 July
Profit for the period
Dividends paid/declared
Closing balance at 30 June
Statement of financial position
Current assets
Cash and cash equivalents
Trade and other receivables
Current tax asset
Inventory
Total current assets
Non current assets
Investment in subsidiaries
Trade and other receivables
Plant and equipment
Right of use assets
Deferred tax asset
Intangible assets
Total non current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Current tax payable
Contingent consideration
Employee benefits
Total current liabilities
Non current liabilities
Borrowings
Lease liabilities
Deferred tax liability
Contingent consideration
Employee benefits
Total non current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained earnings
Total equity
2021
$’000
28,608
(9,273)
19,335
-
-
-
19,335
(117,917)
19,335
(8,182)
(106,764)
5,629
8,931
-
4,038
18,598
13,174
778
23,187
42,321
11,251
254,224
344,935
363,533
25,822
1,629
5,749
2,943
1,205
10,695
48,043
-
38,519
11,885
628
1,215
52,247
100,290
263,243
2020
$’000
13,890
(3,463)
10,427
779
(62)
717
11,144
(116,319)
10,427
(12,025)
(117,917)
12,421
9,477
1,098
3,806
26,802
12,943
-
17,085
36,514
-
256,412
322,954
349,756
27,014
-
2,316
-
600
9,435
39,365
18,942
36,314
819
1,200
1,026
58,301
97,666
252,090
506,786
(136,779)
(106,764)
263,243
506,786
(136,779)
(117,917)
252,090
As at 30 June 2021, the Deed of cross guarantee Group has a net current asset deficiency of $19,699,000 (FY20: $12,563,000). Refer to the basis of preparation
note in relation to going concern considerations.
106.
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Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care.
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Section 6
Other disclosures
6.1 Auditors’ remuneration
6.4 Reporting entity
6.2 Events occurring after the reporting period
6.5 Basis of preparation
6.3 Commitment and contingencies
6.6 New standards and interpretations
6.1 Auditors’ remuneration
During the year the following fees were paid or payable for services provided by the auditor of the parent entity,
its related practices and non-related audit firms:
Audit services - KPMG
Audit and review of financial statements
Other services - KPMG
Taxation services
Other auditors (Non-KPMG)
Audit and review of financial statements
Total services
6.2 Events occurring after the reporting period
2021
$
2020
$
273,500
270,000
128,650
177,000
10,600
412,750
11,122
458,122
On 24 August 2021, a fully franked final dividend of 2.1 cents per share was declared. The record date for the
dividend is 10 September 2021 and the payment date for the dividend is 8 October 2021.
Except as disclosed above, there has not arisen in the interval between the end of the financial year and the date
of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of
the Company, to affect significantly the operations of the Group, the results of those operations, or the state of
affairs of the Group, in future financial periods.
6.3 Commitment and contingencies
As announced to the ASX on 23 December 2020, Monash IVF Group became aware that it and certain of its
subsidiaries have been named as defendants in proceedings filed in the Supreme Court of Victoria in relation to,
or in connection with, the Group’s non-invasive pre-implantation genetic screening technology (Ni-PGT or cell-free
PGT-A). The proceedings filed makes a series of allegations against Monash IVF Group in relation to the Ni-PGT
testing including that patients who had embryos classified as aneuploid as a result of Ni-PGT testing may have
had embryos destroyed or did not proceed to embryo transfer. Ni-PGT testing was suspended in October 2020.
The Group has filed the defence in accordance with the Court’s directions. The Group has notified its insurers of the
claim. The Group has provided for associated costs expected to be incurred in defending the claim. The claim does
not specify an amount of damages and it is not currently possible to determine the ultimate impact of this claim, if
any, on the Group.
.107
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
6.4 Reporting entity
Monash IVF Group Ltd (the ‘Company’) is a for profit company primarily involved in the area of assisted
reproductive services and the provision of specialist women’s imaging services. Monash IVF Group Ltd was
incorporated on 30 April 2014. The Company is incorporated in Australia and listed on the Australian Stock
Exchange. Its registered office is at Level 1, 21-31 Goodwood Street, Richmond, Victoria and is limited by shares.
The consolidated financial statements comprise the Company and its controlled entities (collectively ‘the
consolidated entity’, ‘Monash Group’ or ‘Group’).
6.5 Basis of preparation
Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the
Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial
statements of the Group comply with the International Financial Reporting Standards (IFRSs) and interpretations
adopted by the international Accounting Standards Board (IASB).
The consolidated financial statements were approved by the Board of Directors on 24 August 2021.
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars, which is the functional and presentational
currency of the Company and the majority of the Group. Each entity in the Group determines its own functional
currency and items included in the financial statements of each entity are measured using that functional currency.
Rounding of amounts
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191 issued by the Australian Securities and Investments Commission (ASIC), relating to the rounding off of
amounts in the consolidated financial statements. Amounts in the consolidated financial statements have been
rounded off in accordance with that legislative instrument to the nearest thousand, unless specifically stated to be
otherwise.
Basis of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Monash IVF Group
Ltd as at 30 June 2021 and the results of all subsidiaries for the year then ended. Subsidiaries are all entities
over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power to
direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred
to the Group until the date on which control ceases. The acquisition method of accounting is used to account for
business combinations by the Group. Intra-group balances and transactions, arising from intra-group transactions
are eliminated at consolidation.
Non-controlling interests are measured initially at their proportionate share of the acquiree’s identifiable net assets
at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions.
The Group’s interests in equity-accounted investees comprise interests in associates. Associates are those entities in
which the Group has significant influence, but not control or joint control, over the financial and operating policies.
Interests in associates and the joint venture are accounted for using the equity method. They are initially recognised
at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements
include the Group’s share of the profit or loss and OCI of equity accounted investees, until the date on which
significant influence ceases.
108.
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Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
6.5 Basis of preparation (continued)
Basis of measurement
The financial report has been prepared on an accrual basis and is based on historical cost (unless otherwise stated),
except for derivative financial instruments and contingent consideration assumed in a business combination, which
have been measured at fair value.
Foreign currency translation
Transactions in foreign currencies are translated at foreign exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the
functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the
difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective
interest and payments during the period, and the amortised costs in foreign currency translated at the exchange
rate at the end of the reporting period. Non-monetary assets and liabilities denominated in foreign currencies that
are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the
fair value was determined. Non-monetary items that are measured in terms of historical costs in a foreign currency
are translated using the exchange rate at the date of transaction.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition,
are translated to Australian dollars at exchange rates at the reporting date. The income and expenses of foreign
operations are translated to Australian dollars at exchange rates at the dates of the transactions. Foreign currency
differences are recognised in other comprehensive income (OCI), and presented in the foreign currency translation
reserve (translation reserve) in equity.
Use of estimates and judgements
The preparation of the consolidated financial statements in conformity with AASBs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts
of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimates are revised and in any future periods affected. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are discussed below:
(i) Estimated recoverable amount of goodwill and other non-current assets
The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy
for intangible assets. For the purposes of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash inflows, which are largely independent of the cash inflows from other assets
or groups of assets (cash generating units, or CGUs). Refer to Note 2.6 for further details on impairment testing.
(ii) Provision for ECL on receivables
The Group calculates the doubtful debts provision under the expected credit loss (ECL) model. The Group assesses
credit losses based on the Group’s historical credit loss experience, adjusted for forward-looking factors specific to
the debtors and the economic environment. Measurement of ECL allowance for trade receivables is disclosed in
Note 2.1.
(iii) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future cash flows at a post-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised as a finance cost.
.109
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Monash IVF Group Limited
Notes to the Consolidated Financial Statements continued
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
6.5 Basis of preparation (continued)
(iv) Deferred consideration
The measurement of deferred consideration requires management to estimate the amount likely to be paid in the
future. This requires the exercise of judgement, in particular where the amounts is payable is dependent to the
future financial performance of the business that has been acquired.
(v) Leases
The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee that
include renewal options. The assessment of whether the Group is reasonably certain to exercise such options impacts
the lease term, which significantly affects the lease liabilities and right-of-use assets recognised.
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and
short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as
an expense on a straight-line basis over the lease term.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is
a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s
estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its
assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance
fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to
the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-
use asset has been reduced to zero.
Going concern
As at 30 June 2021, the group has a net current asset deficiency of $18,579,000 (FY20: $7,197,000). The
Directors consider that there are reasonable grounds to believe the Group will be able to pay its debts as and
when they fall due based on forecast operating cash flows which indicate that cash reserves are sufficient to fund
operations, the availability of committed but undrawn external debt facilities, and given certain current liabilities
such as employee entitlements and deferred revenue will not be fully settled in the short term to cause a liquidity
shortfall.
The Directors have considered forecast cash flow scenarios (including adverse downside scenarios due to COVID-
19) for at least the twelve month period from the date of approval of these financial statements. As a result, the
Directors consider that the Group is able to pay its debts as and when they are due and these financial statements
can be prepared on a going concern basis.
6.6 New standards and interpretations
A number of new standards are effective for annual periods beginning after 1 July 2021 and earlier applications
permitted; however, the Group has not early adopted the new or amended standards in preparing these
consolidated financial statements. The following new and amended standards are not expected to have a
significant impact on the Group’s consolidated financial statements.
Reference to Conceptual Framework (Amendments to AASB 3)
•
• Onerous contracts – Cost of Fulfilling a Contract (Amendments to AASB 137)
•
•
Property, Plant and Equipment: Proceeds before Intended Use (Amendments to AASB 116)
Classification of Liabilities as Current or Non-current (Amendments to AASB 101)
110.
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Monash IVF Group Limited
Directors’ Declaration
Directors’ Declaration
for the year ended 30 June 2021
1.
In the opinion of the Directors of Monash IVF Group Ltd (the ‘Company’):
(a)
the consolidated financial statements and notes set out on pages 77 to 110 and the Remuneration report
on pages 40 to 56 in the Directors’ report, are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date; and
complying with Australian Accounting Standards, the Corporations Regulations 2001; and
(ii)
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
2.
3.
4.
There are reasonable grounds to believe that the Company and the Group entities identified in Note 5.1 will
be able to meet any obligations or liabilities to which they are or may become subject to by virtue of the Deed
of Cross Guarantee between the Company and those Group entities pursuant to ASIC Corporations (Wholly
Owned Companies) Instrument 2016/785.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001 by the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2021.
The Directors draw attention to page 108 to the consolidated financial statements, which include a statement of
compliance with International Financial Reporting Standards.
Signed in accordance with a resolution of the Directors:
Dated in Melbourne and Sydney, 24th day of August 2021
Mr. Richard Davis
Chairman
Mr. Michael Knaap
Chief Executive Officer and Managing Director
24 August 2021
24 August 2021
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KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Monash IVF Group Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Monash IVF Group Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year ended on that date; and • complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises: • Consolidated statement of financial position as at 30 June 2021 • Consolidated statement of profit or loss and other comprehensive income, Consolidated statement of changes in equity, and consolidated statement of cash flows for the year then ended • Notes including a summary of significant accounting policies • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code. Key Audit Matters Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. This matter was addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter. 90 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Monash IVF Group Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Monash IVF Group Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year ended on that date; and • complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises: • Consolidated statement of financial position as at 30 June 2021 • Consolidated statement of profit or loss and other comprehensive income, Consolidated statement of changes in equity, and consolidated statement of cash flows for the year then ended • Notes including a summary of significant accounting policies • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code. Key Audit Matters Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. This matter was addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter. 90Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. .113
Goodwill ($233.2 million) Refer to Note 2.6 of the Financial Report The key audit matter How the matter was addressed in our audit At 30 June 2021 the Group’s balance sheet includes goodwill contained within three cash generating units (CGUs) – Australia, International and Ultrasound. A key audit matter for us was the Group’s annual testing of goodwill for impairment, given the size of the balance (being 66% of total assets). We focused on the significant forward-looking assumptions the Group applied in its value in use models, including: • Forecast cash flows, growth rates and terminal growth rates in light of market conditions impacting each CGU and continued economic uncertainties during and post the COVID-19 pandemic. These conditions impact our consideration of forecasting risk; and • Discount rates, which vary according to the conditions and environment the specific CGU is subject to from time to time. The models are largely manually developed, use adjusted historical performance and a range of internal and external sources as inputs to the assumptions. Modelling using forward-looking assumptions tends to be prone to greater risk for potential bias, error and inconsistent application. Where the Group has not met prior year forecasts in relation to a specific CGU we factor this into our assessment of forecast assumptions. These conditions necessitate additional scrutiny by us, in particular to address the objectivity of sources used for assumptions, and their consistent application. We involved valuation specialists to supplement our senior audit team members in assessing this key audit matter. Our procedures included: • We considered the appropriateness of the Group’s value in use methodology to perform the annual test of goodwill for impairment against the requirements of the accounting standards. • We assessed the integrity of the value in use models used, including the accuracy of the underlying calculations formulas. • We met with management and those charged with governance to understand the impact of COVID-19 on each CGU, including its expected impact on forecast results, particularly in relation to the International CGU. • We compared the forecast cash flows contained in the value in use models to Board approved forecasts. • We assessed the Group’s underlying methodology and documentation for the allocation of corporate costs and corporate assets to each CGU, for consistency with our understanding of the business and the criteria in the accounting standards. • We assessed the accuracy of previous Group forecasts to inform our evaluation of forecasts included in the models. • We considered the sensitivity of the models by varying key assumptions, such as forecast cash flows, growth rates and discount rates, within a reasonably possible range. We did this to identify those assumptions at higher risk of bias or inconsistency in application and to identify those CGUs at higher risk of impairment and to focus our further procedures. • We challenged the Group’s forecast cash flow and growth assumptions in light of the expected continuation of uncertainties arising from the COVID-19 global pandemic. We used our knowledge of the Group, business and customers and our industry experience. • Working with our valuation specialists, we: - independently developed a comparable discount rate range from publicly available 91Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report 114.
market data for comparable entities and adjusted by specific risk factors to the Group and the industry it operates in; - independently assessed the growth rates based on the industry in which the Group operates and current economic environment; and - compared the implied multiples for comparable entities to the implied multiples from the Group’s value in use models. • We assessed the disclosures in the financial report using our understanding obtained from our testing and against the requirements of the accounting standards. Other Information Other Information is financial and non-financial information in Monash IVF Group Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. The Other Information we obtained prior to the date of this Auditor’s Report was the Director’s Report (including the Remuneration Report), Appendix 4E and Corporate Governance Statement. The Chairman’s Report, Managing Director & CEO’s Report, Financial Overview, Chief Financial Officer’s Report and Shareholder Information are expected to be made available to us after the date of the Auditor’s Report. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not and will not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error • assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. 92Managing Director & CEO’s ReportChairman’s ReportYear in ReviewAbout UsLeading the future of reproductive care. .115
Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report. Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Monash IVF Group Limited for the year ended 30 June 2021 complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included within the Directors’ report for the year ended 30 June 2021. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPM_INI_01 KPMG Chris Sargent Partner Melbourne 24 August 2021 93Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report Shareholder Information
Shareholder Information
Additional information required under ASX Listing Rule 4.10 and not shown elsewhere in this Annual Report is as
follows. This information is current as at 30 September, 2021.
Distribution of Shareholders – Ordinary Shareholders
Size of Holding
1 to 1000
1001 to 5000
5001 to 10000
10001 to 100000
100001 and Over
Total
No of
Shareholders
Ordinary
Shares
1,488
2,627
1,040
1,255
114
6,524
958,799
7,071,020
8,065,210
34,901,439
323,125,376
374,121,844
% of
issued
Capital
.26%
1.89%
2.16%
9.33%
86.37%
100.00%
The number of security investors holding less than a marketable parcel of 521 securities ($0.96 on 30/9/2021) is
552 and they hold 174,198 securities.
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Shareholder Information continued
Shareholder Information continued
20 Largest Shareholders – Ordinary Shareholders
Rank
1
Name
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
NATIONAL NOMINEES LIMITED
ARGO INVESTMENTS LIMITED
BNP PARIBAS NOMINEES PTY LTD
CS FOURTH NOMINEES PTY LIMITED
BRISPOT NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
BNP PARIBAS NOMS PTY LTD
UBS NOMINEES PTY LTD
NEWECONOMY COM AU NOMINEES PTY LIMITED <900
ACCOUNT>
PACIFIC CUSTODIANS PTY LIMITED
IPPOLITI PTY LTD
VOLLENHOVEN INVESTMENTS PTY LTD
MR PRASHANT NADKARNI
DR ROBERT IAN MCLACHLAN + MRS EDWINA MARGARET
MCLACHLAN
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
No. of fully
paid shares
66,595,376
65,624,403
54,722,835
41,179,976
19,982,646
18,851,171
6,784,523
5,388,019
4,879,377
3,407,584
3,199,536
2,483,708
2,474,369
2,011,336
1,478,787
1,461,484
1,385,944
% of issued
Capital
17.09%
16.84%
14.04%
10.57%
5.13%
4.84%
1.74%
1.38%
1.25%
.87%
.82%
.64%
.63%
.52%
.38%
.38%
.36%
BNP PARIBAS NOMINEES PTY LTD
1,384,809
.36%
19
PAYNE MEDIA PTY LTD
BNP PARIBAS NOMINEES PTY LTD
20
Total for Top 20
Total other investors
Grand Total
Substantial Shareholders
1,300,850
1,300,000
305,896,733
88,775,232
.33%
.33%
78.50%
21.50%
389,671,965
100.00%
As at 30 September 2021, the following details the names of substantial shareholders in Monash IVF Group Limited
and the number of shares held, as disclosed in substantial holding notices given to the Company:
Rank
1
2
3
4
5
Name
Allan Gray Australia Pty Ltd
Challenger Limited
Lennox Capital Partners Pty Ltd
BlackRock Group
Argo Investments Limited
Voting Rights
No. of fully paid shares
51,858,105
30,652,394
28,634,592
27,156,042
19,982,646
% of issued
Capital
13.31%
7.87%
7.35%
6.96%
5.13%
In accordance with the Constitution, each member present at a meeting (whether in person, by proxy, by power of
attorney or by a duly authorised representative), upon a poll, shall have one vote for each fully paid ordinary
share.
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Monash IVF Group Annual Report 2021Our StrategyBoard of DirectorsOur PillarsManagement TeamFY21 Financial ReportFinancial OverviewChief Financial Officer’s Report
Corporate Directory
Corporate Directory
Stock Exchange Listing
Auditor
KPMG Australia
Tower Two, Collins Square
727 Collins Street
Docklands VIC 3008
T +61 (0)3 9288 5555
Corporate Office
Pelaco Building 1
Level 1
21-31 Goodwood Street
Richmond VIC 3121
T +61 (0)3 9420 8235
Website
www.monashivfgroup.com.au
The shares of Monash IVF Group are listed by ASX
Ltd on the Australian Securities Exchange trading
under “MVF”.
Directors
Mr Richard Davis – Chairman
Mr Neil Broekhuizen
Mr Josef Czyzewski
Dr Richard Henshaw
Mr Michael Knaap
Ms Zita Peach
Ms Catherine West
Mr Malik Jainudeen – Company Secretary
Share Registry
Link Market Services
Tower 4, 727 Collins Street
Melbourne VIC 3008
T 1300 554 474
Legal
Clayton Utz
1 Bligh Street
Sydney NSW 2000
T +61 (0)2 9353 4000
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