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17 May 2018 City Fertility: A Cross-border Partnership Presented by David Nathan Chairman, City Fertility

City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

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Page 1: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

City Fertility: A Cross-border

PartnershipPresented by David Nathan

Chairman, City Fertility

Page 2: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Brief history of City Fertility

Beginning

• Launched in 2003 in Brisbane with 1 clinician and 1 embryologist

• Initial strategic plan was to become the largest fertility care

provider in Brisbane

Today

• One of Australia’s largest IVF groups with 40+ doctors, 150

employees and 8 clinic centres including Brisbane, Melbourne,

Sydney and the Gold Coast

Page 3: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

What we looked like in 2016-7

• Local market shares by state

ranging from 2.5% to 10%

• 40 clinicians

• 4th largest player in Australia

• Proprietary sub-brands for

niche service areas:SA

QLD

NSW

VIC

Adelaide Clinic

Brisbane CBD Clinic

Brisbane South Clinic

Gold Coast Clinic

Sydney Liverpool Clinic

Melbourne North Clinic

Melbourne CBD Clinic

Sydney CBD Clinic

Page 4: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Why we explored an outside investor

• Strong 12-year growth track record, but:

❑ Changing domestic landscape for care delivery

❑ Growing need to look beyond Australia for

international best practice

❑ Greater competition from large “corporatised”

competitors

❑ Access to new and future technological advances

❑ Need to invest to compete

Page 5: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Investor search process

• Engaged PwC to explore investor options:

❑ International IVF players

❑ Domestic and international healthcare groups

❑ Domestic and international private equity

Page 6: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Our investor criteria

• Domestic and Asian growth

• Medical leadership

• Reputation

• Approach to management

• Cultural compatibility

• Transaction experience

• Synergies

Page 7: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Responses

• 100+ international and domestic organisations expressed interest

• Strong international interest:

❑ China

❑ United States

❑ New Zealand

❑ Spain

❑ United Kingdom

❑ India

❑ South Korea

Page 8: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Outcome

• Selected a consortium led by CHA Healthcare (CHA) and

Singapore Medical Group (SMG)

• CHA as lead investor and majority shareholder of combined 65%

stake

• Unique structure to preserve ongoing equity ownership and

participation by existing doctors and management

• Deal completed in 100 days (April 2018)

• Began PMI early to maximise operational and cultural familiarity

Page 9: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Why CHA-SMG?

Competencies

• CHA’s international reach with operations in Korea, Japan,

Singapore and the US

• Strong history of international research leadership

• Complementary premium healthcare segments including stem cell

treatments, bio-banking, anti-ageing and cosmetics

• Global scale with more than 30,000 IVF cases / 9,000 deliveries /

14 general and specialty hospitals treating 2.5m patients annually

Page 10: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Why CHA-SMG? (cont’d)

Synergies

• Corporate capability and compatibility

• Similar growth aspirations

• Global reputation

• Key medical drivers

❑ Best-of-breed use of technology

❑ Quality of their clinician team

❑ Our key belief that research drives success and CHA undertaking over

300 international fertility and stem cell research trials annually

❑ Pregnancy rates accepted as a fundamental driver of success

Page 11: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

The journey so far

• We are more attractive to clinicians and patients alike

❑ Updated strategies around marketing and consumer experience

• Stronger corporate and cultural synergies

❑ Patient experience and outcomes as the main priority – growth and profits will follow

❑ Redefine the conventional concepts of “success targets” in Australia

• Enhanced access to global health partnerships and suppliers

❑ Leverage to develop R&D partnerships with leading Australian universities and

researchers

❑ Adding advanced new technologies

• Stronger business analytics and technological platforms

❑ New perspectives on business metrics

❑ Building new data analytic tools

Page 12: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Driving CFC evolution

Marketing Example

• New logo, branding and consumer proposition

• Emphases on CFC’s key points of differentiation

• Specialised services for international and ethnic cohorts

• Mobile-enabled and social media savvy

(Old CFC online marketing)

Page 13: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Marketing example: impact

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FY 15-16 FY 16-17 FY 17-18 FY 18-19 FYI 19-20

No.

of A

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tments

No.

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nquirie

s

Month

CFC Group Enquiries and Specialist Appointments Jul 2015 - Sept 2019

Enquiries CFCGroup

Appts CFC Group

Post-Signing Increase in Volume

Page 14: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Technical collaboration

• Joint conferences in Gold Coast and Thailand attended by more

than 800 participants

• Exchange program for lab specialists

• Joint review of new technologies from Australia and Korea

Page 15: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

Re-positioning for the future• CFC’s Australian Flagship Clinic to be officially opened on 21

November at Gateway at Circular Quay, Sydney

• Developed Australia’s most advanced and modern IVF Centre

• Dual Clean Room Laboratories system

• Dual dedicated day theatre complex

• Design collaboration between Australia, Korea, United States and

Singapore to ensure optimal patient treatment experience

Page 16: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and

17 May 2018

Summary

✓ Found a partner with healthcare leadership beyond just IVF

✓ Compatibility of skills and visions

✓ Long-term wins over short-term

✓ New modes of thinking about old problems

✓ Constantly strengthening our foundations for future growth

✓ Bring together the best of Australia and Korea to seek out new

international opportunities