Monash IVF Group Limited (MIS.F) Earnings Call Transcript

Good afternoon, ladies and gentlemen, and welcome to the Seventh Annual General Meeting of Monash IVF Group following the company's listing in June '14. My name is Richard Davis, and I am the Chairman of the Board of Directors and the Chairman for this meeting. Thank you all for attending today's meeting, a new experience for us as we will be completely online due to COVID and the related health concerns. I hope you and those you care about are keeping safe and well in these challenging and uncertain times. While this online format may be familiar for some shareholders, I acknowledge that it may be less so for others. However, I assure you that you will have the same opportunity to participate today as you would at a physical meeting. This includes being able to ask questions through the online platform and vote using an electronic voting card. I'll discuss these processes a little later. I also acknowledge you to download -- or encourage you to download the virtual online meeting guide from the Monash IVF Group website if you haven't already done so. If we experience technical issues that impact connectivity to the meeting, we will assess the issues and will keep you informed. If this is impossible, you will be e-mailed instructions on how and when to rejoin the meeting. I am informed by our company Secretary that in accordance with the company's constitution, a quorum is present, and I declare the meeting formally open. First of all, I would like to introduce my fellow directors and senior executives of the company who are available and participating in the meeting today: Neil Broekhuizen; Joe Czyzewski, the Chair of Audit and Risk Management Committee; Dr. Richard Henshaw; Zita Peach, the Chair of the Remuneration and Nomination Committee. I'd also like to welcome Catherine West, who joined the Board in September. Michael Knaap, the Chief Executive Officer and Managing Director; Malik Jainudeen, Chief Financial Officer and Company Secretary. Our auditors from KPMG have also made themselves available, Bernie Szentirmay, audit partner, who is rolling off the engagement following financial year '20; Chris Sargent, the audit partner who is replacing Bernie; Pradeep de Silva, the Audit Senior Manager. I thank them for making themselves available today. Voting Resolutions 2, 3a, 3b, 3c and 4 will be conducted by way of a poll using the electronic voting card you should receive after clicking the Get a Voting Card button. Each share provides entitlement to one vote. Shareholders can submit written questions during the meeting by clicking on the Ask a Button question (sic) [ Question button ]. I do not encourage shareholders who have questions to submit -- I do encourage shareholders who have questions to submit them as soon as possible. If you have any trouble using the platform, please check the virtual online meeting guide from the Monash IVF Group website or contact Link Market Services on 1800990363. Only proxy shareholders or their duly appointed proxies or corporate representatives can vote at today's meeting. Summary details of the proxies on each resolution will be displayed on the screen as each resolution is considered and will be reported to the ASX after the meeting concludes. All undirected proxy votes appointing the Chairman as the proxy holder will be voted in favor of the resolutions on items 2, 3a, 3b, 3c and 4. The proxy form authorizes the Chair to vote in favor of resolution 2, the remuneration report; and resolution 4, grant of performance rights to Mr. Michael Knaap. Prior to handing over to Michael, I would like to provide some commentary on the 2020 financial year and year-to-date performance in 2021. Our commitment to being one of the world's best fertility providers has never been more strongly demonstrated than over the last 12 months. The group managed an unprecedented number of operational and financial challenges resulting from COVID-19. Agility and resistance -- resilience were critical as we adapted our operating model in response to the temporary elective surgery suspension in the fourth quarter of '20, the introduction of safety and protective measures, border restrictions and the significant changes to state-based health policies across Australia and Malaysia. Monash IVF achieved a strong recovery following the temporary IVF suspension, and this has been made possible because the Board and management teams have worked closely to ensure our people, doctors and patients were at the center of our decisions and operational changes. The focus on our people and community did not waver as we balanced the needs of our patients with the need of the greater health care system. I am proud of the commitment of our people and the high level of care, empathy and support they provided in what was an unsettling time for our patients. The Monash IVF Group was innovative in the improvements to the patient experience during these uncertain times to adapt to the new normal. This included digitizing parts of the patient journey and improving patient communications. We demonstrated our agility and willingness to respond to new ways of working and living through the shift in telehealth, remote working in some parts of our business, digital engagement with our patients and people, and the myriad of operational changes which were implemented to ensure the ongoing safety of our people, patients and doctors. The management team has done an impressive job in navigating the challenges faced and leading us through to a strong recovery. Our business has emerged financially stronger, more resilient and with strong growth momentum. The balance sheet and the capital metrics are strong following the $80 million equity raising, which has reduced our debt, continuing to assist the company as it navigates through COVID-19 and is allowing the company, importantly, to invest in significant growth initiatives, including the construction of our new Sydney CBD flagship fertility clinic, which is now open. In June, we made our second international investment with the majority acquisition of the KPJ Johor Specialist Hospital fertility business in Malaysia. We have strong intentions to transform our Melbourne fertility business and expand our Brisbane fertility business. In addition, our future growth and succession plans were significantly strengthened during the year, with 12 specialists participating in our fertility traineeship program and 8 new contracted fertility specialists joining Monash IVF Group. Following the COVID impact in the fourth quarter of '20, the business has rebounded strongly in the period from July to October '20, whereby stimulated cycles have grown by 23.2% compared to the prior period comparative. Our Kuala Lumpur business has also rebounded, strongly demonstrating a 16.2% growth in that period. Our ultrasound businesses remained open throughout the pandemic and has also experienced strong growth compared to the prior comparative period, with ultrasound scans growing by 10.7%. The group anticipates the activity experienced in July to October '20 to moderate but continue to grow above historical levels for the remainder of the 2021 based on activity experienced in November and the current patient pipeline, which provides a good indication of activity in the short to medium term. This remains subject to COVID-19 developments in the markets we operate in. The company reported net profit after tax for the 6-month period ended 31 December '20 is expected to be approximately $14 million to $14.5 million as compared to $8.1 million in the prior comparative period. The company's net profit after tax before certain nonregular items for the 6-month period ended 31 December is expected to be approximately $11 million to $11.5 million as compared to $9.1 million in the prior comparative period. Total nonregular items are $3 million post tax, which includes $3.5 million impact from the JobKeeper subsidy payments received for the first quarter of '21, partially offset by a $0.5 million commissioning and start-up costs associated to the opening of the Sydney CBD fertility clinic in November this year. Net profit after tax before certain nonregular items is inclusive of the impact of goodwill in the [ expiration ] of remediation treatment offices to our NIPT patients impacted by the suspension of the NIPT program. Earnings growth in the second half is expected to moderate as compared to the first half following recovery of pent-up demand in the first quarter. However, the company expects that earnings growth can be achieved in the second half as compared to the second half of last year, given growth in the current IVF patient pipeline and notwithstanding any further implications from COVID-19. Given anticipated earnings growth during the 2021, cash flows and balance sheet positions, the company is likely to recommence payments of dividends but remains subject to business performance and any further adverse implications of COVID-19. I would like to thank our dedicated specialists, nurses, scientists and support staff who have worked tirelessly to meet the pent-up demand created at the end of the financial year ended '20 and the strong volume growth experienced during '21 to date. The business is in a great position to evolve and deliver new services and technologies that meet society's changing needs, including earlier and preventative reproductive health, continue to enhance its patient experience and enter new markets we operate in. Thank you to our CEO, Michael Knaap; CFO, Malik Jainudeen; and our Chief Operating Officer, Hamish Hamilton; and the rest of the management team for their leadership during the pandemic and navigation of the business through these challenging times. The Board wish to thank our shareholders for their continued support during the unprecedented challenges faced during the fourth quarter of '20. The Board and I are excited about overseeing one of the world's best fertility solution providers' look to the future. We're looking forward to continuing to deliver exceptional care for our patients in partnership with our doctors and strong financial results over the coming year. I now invite our Chief Executive Officer and Managing Director, Michael Knaap, to address the meeting.

Thank you, Richard, and thank you to everyone for joining us today. 2020 has been a year that we will all remember for its challenges and the way we have overcome them. And I am extremely proud of Monash IVF Group for our commitment and our courage during this time. We have demonstrated strength by continuing to live by our principles and deliver a safe environment for our people, doctors and patients. We also demonstrated strong progress against our Vision 2022 strategy due to the dedication and commitment of our doctors, clinical team and all of our people who each and every day deliver exceptional care to our patients. Monash IVF is a market leader in women's health in our core assisted reproductive services, diagnostics and ancillary services, and women's ultrasound. We have an established footprint with a total of 43 clinics in both assisted reproductive services and women's ultrasound across Australia and Malaysia. Furthermore, we have an experienced and capable team with 121 doctors and over 550 scientific nursing and support team members who have shown exceptional resilience, agility and courage during the 2020 financial year. Monash IVF Group's underlying business and fundamentals are solid, with positive momentum from our growth and improvement programs, along with a strong patient pipeline as we enter into the next financial year, in this financial year. This momentum has continued through the first half of this financial year. Last year, our revenue declined by 4.3% at $145.4 million for the year, which was impacted adversely by COVID-19 and the sudden departure of 5 fertility specialists in September 2019. We achieved a $14.4 million adjusted or underlying NPAT and adjusted EBITDA of $34.8 million and a $32.8 million reported EBITDA. These outcomes, despite the challenges, highlight the progress and positive momentum we are building together at Monash IVF Group. As a reminder, post the temporary suspension of all [ merge ] and elective surgery in Australia, including IVF procedures, we recommenced IVF services on the 27th of April, and indeed, that led to IVF procedures commencing around mid-May. Furthermore, a Movement Control Order was in place from March in Malaysia, and although there was substantial easing of these restrictions occurring in early June, such is the nature of COVID-19 that the situation continues to be volatile in Malaysia. We had a $3.9 million adverse NPAT impact during the March to June 2020 period as compared to the previous corresponding period, predominantly due to COVID-19, which included $4.9 million pretax of JobKeeper subsidy, which assisted to maintain engagement with the workforce during hibernation and the recovery period. Although our financial year '20 results were adversely impacted by the temporary suspension of elective surgery, our recovery was strong and swift. As the graph suggests, our stimulated cycles were up by 23.3% in the first quarter versus the previous corresponding period of this year. I would like to take a deeper look at the COVID-19 recovery through to October 2020. Following recommencement of IVF services in Australia, stimulated cycles increased by 34.3% between 18th of May and 30th of June 2020 compared to the previous corresponding period, with 33.6% growth in the June-July period. Furthermore, the momentum continued in the August to October 2020 period, 20.2% growth on the previous corresponding period. It is worthwhile calling out that Victorian stimulated cycles increased by 17.8% between July and October 2020 compared to the previous corresponding period, notwithstanding Stage 4 restrictions and the exit of 5 specialists in September 2019. It is with this momentum, coupled with the strength of industry and patient advocacy, that we can be relatively confident of the continuity of service through the next phases of COVID-19. Our international stimulated cycles recovery has been moderate due to our ongoing COVID-19 restrictions in Malaysia, whereby we demonstrated 3.1% growth in the August to October 2020 period. In reference to our women's ultrasound service, after a moderate decline in ultrasound scans in the early phase of COVID-19, ultrasound scans increased by 11.7% between August and October 2020 and is up 10.7% October year-to-date compared to the previous corresponding period. In reference to scientific leadership, on the most critical metric of pregnancy success rates, we have demonstrated improvement in financial year 2020. This has been made possible through the Monash Way program that is driven by our industry-leading scientists. We continue to partner with innovative organizations to advance new technologies. There are many scientific improvement projects all geared towards our unrelenting focus to deliver better patient outcomes. We have a clear strategy to attract new and experienced fertility specialists across Australia, and doctor partnerships have to be exceptionally strong with a strong value proposition that is appealing in order to succeed in this strategy. To demonstrate our doctor partnership strength, 8 new fertility specialists were welcomed into the Monash IVF Group family, bringing the total specialist number to 121. Furthermore, our long-term future is strong, with 12 specialists currently participating in our traineeship program across Australia. We are investing in expanding our clinic and consulting network while enhancing our value proposition to our patients and doctors. The strategic priority of clinic infrastructure has continued to be a focus during the financial year 2020. Our new Sydney CBD flagship clinic is now open and will represent our best practice patient experience. This clinic is a key initiative to attract new fertility specialists into the Monash IVF Group family. We also focused on transformation of our Melbourne footprint, a new full-service clinic in Penrith, which commenced in October, and a refurbishment completed in our [ Daidge ] South Australian clinic. Increased marketing activities and innovation are driving growth in our patient pipeline. We were excited to launch a new Brave Together advertising campaign to illustrate our progressive, empathetic and empowering approach to patient care. Our new brand positioning is supporting enhancements to the patient engagement strategy and empowering patients to make proactive decisions on safeguarding their fertility. Our patient experience principle remains focused on care, empathy, empowerment and a consistent patient journey throughout our network of clinics. We successfully maintained patient engagement during the temporary suspension of services, which ensured pent-up patient demand converted to [ treatment ] following recommencement of services. People engagement remains the key priority. Our proactive approach when responding to COVID-19 included strong engagement and communication strategies, which is providing our people and patients with a safe and protected environment. We have continued to build specialized capabilities and knowledge throughout our dedicated learning and development framework and platforms. Our ultrasound business continued to be resilient throughout COVID-19, demonstrating growth in the June to October period, as previously outlined. Our total scans across the group increased by 1.8%, and noninvasive prenatal testing increased by 2.8%, which in light of a moderate decline in the March to June period was a good result. Social distancing and infection control measures are critical measures that remain in place, although they have a negative impact on efficiency. We believe it is essential to continue to protect the community, our people and patients during COVID-19. Having recently launched a reproductive [indiscernible] service, the number of tests grew by 94% in this financial year. This service and related genetics capability is anticipated to be a key strategic driver of future stimulated cycle growth in order to prevent genetic disease in children as awareness and uptake for this service grows. With this in mind, our high-caliber genetics and genomic pathology appointment has been made to continue to grow our genetics business and meet reg requirements. Kuala Lumpur was heavily impacted by the Movement Control Order, as previously outlined. The Movement Control Order was initially eased on 9th of June, and there were positive early signs of recovery. Overall, the FY '20 Malaysian stimulated cycles declined by 205, and with a decline of 199 during the March to June period due predominantly to COVID-19. As a result, our KL revenue decreased by 14.5% from $11.6 to $9.9 million, and EBIT decreased by 24% from $5 million to $3.8 million. Our international expansion strategy saw great progress, and we acquired a majority stake of a boutique IVF operation in Johor Bahru, Malaysia in June. The clinic supports patients in Southern Malaysia and Singapore. We are also in partnership with a large Malaysian private hospital group known as the KPJ Hospital Group. This clinic expands our footprint in the Southeast Asian region and is symbolic of our intention to continue strategic expansion in the region. Our Vision 2022 strategic road map provides a clear pathway forward and enables everyone to understand the priorities, actions and decisions required to achieve success and deliver profitable growth in the oncoming years. We have made significant progress on our strategic pillars, as outlined in previous slides, and we'll continue to do so in order to deliver our Vision 2022. Our capital metrics, following the equity raise, has allowed us to navigate the uncertainty of 2020 and enables us to maintain momentum on strategic growth initiatives. As I draw your attention to the trading update for financial year '21, having previously covered all the key volume treatment metrics, I would like to emphasize the pent-up IVF patient demand created during the temporary suspension of IVF procedures has now been fully recovered in the first quarter of 2021. Monash IVF Group's key markets' market share between July and October 2020 is above the comparative period. Positively, since the recommencement of IVF procedures in May 2020, market share between May and October 2020 is up by 0.6% on the comparative period. Our new Australian IVF patient pipeline, through inbound inquiry and patient registration, is continuing to show growth on the previous corresponding period. That provides us with a solid platform for the remainder of this financial year. Although our Kuala Lumpur clinic demonstrated 16.2% growth in the period July to October 2020, current conditions related to COVID-19 have moderated the recovery in the near term. Now looking at our outlook statement. And as Richard noted earlier, the company's reported NPAT for the 6 month period ending 31 December 2020 is expected to be approximately $14 million to $14.5 million as compared to $8.1 million in the PCP. The company's NPAT before certain nonregular items in the 6-month period ending 31 December 2020 is expected to be approximately $11 million to $11.5 million as compared to $9.1 million in the prior comparative period. Our earnings growth in the second half of '21 is expected to moderate as compared to the first half of '21 following recovery of pent-up demand in Q1 for financial year 2021. However, the company expects that the earnings growth can be achieved in the second half of this financial year as compared to the second half of last financial year, given the growth in the current IVF pipeline and notwithstanding further implications from COVID-19. As Richard stated, and given the anticipated earnings growth during this financial year and our cash flow and balance sheet positions, the company is likely to recommence payment of dividends but remains subject to business performance and any further adverse implications of COVID-19. So in closing, as a business, we will continue to be agile and provide a safe environment for our people, doctors and patients. Together, we will continue to embrace new ways of working to be the leaders in reproductive care. There is a lot to be proud of, but there is still a great deal to do. I would again like to thank our people for their incredible commitment, passion and pride, particularly through the challenges of the last 12 months. We have industry-leading talent and the highest level of experience within the Monash IVF Group. The work they do each day drives better outcomes for our patients and inspires all of us to deliver on our growth strategy for years to come. Ladies and gentlemen, thank you for your attendance today, and I look forward to keeping you updated through the course of the year. Thank you, Richard.

Thank you, Michael. We now turn our attention to the formal business of the meeting as set out in the Notice of Meeting. After formal business matters conclude, we will address any general shareholder questions to the Board, CEO or auditors. Specific questions on resolutions can be asked and answered as we move through each of the resolutions shortly. However, it may be convenient to do them at the end. Our company Secretary has confirmed the Notice of the Meeting has been sent to all shareholders and other persons entitled to receive it within the notice period. The matters that require consideration today are outlined in the Notice of Meeting, and the notice will be taken as read and can be accessed on the Monash IVF Group website. Monash IVF Group Limited's financial statements for the year ended 2020, together with the auditor's reports, are in our Annual Report, which is also available on our website. Monash IVF Group's share registry provider, Link Market Services, will conduct the voting by way of poll, and Mr. Timothy Farag of Link will act as a returning officer. Votes will be counted at the end of the meeting and results published on the ASX. Shareholders can cast their vote using the electronic voting card received after validating online registration. To validate registration, you'll be asked to enter your security holder reference number or a holder identification number, the SRN or the HIN, plus post codes if you're in Australia or country if you're outside Australia. To then cast your vote, click the Get Voting Card button. If you are intending to vote, you'll be able to finalize and submit votes up until 5 minutes after the meeting ends. I'll remind you at the end of the meeting. The proxy votes that have been submitted will be set out on the slide shown for each resolution. Shareholders have appointed the Chair of today's meeting, myself, as a proxy for approximately 389 million shares voting either for, against or with discretion for all resolutions. As indicated on the proxy form and in the Notice of Meeting, the intention of the Chair is to vote on all discretionary or undirected proxies held by the Chair in favor of each resolution. Shareholders can submit written questions during the meeting by clicking on the Ask a Question button. To ensure questions reach us in time, I'd ask you that you submit them now if you haven't already. Again, any general shareholder questions submitted online during the meeting will be addressed after the formal business is completed. If we aren't able to get through all of them today or if there are specific questions that would be better addressed on an individual basis, we'll respond to them after the meeting. If we receive multiple questions that are similar, we'll try to amalgamate them into one or choose to answer the broadest question which will cover off the others. For the first item, I table the annual financial report for the year ended 30 June '20, together with the directors' report, auditor's report in respect to the financial report. If not already submitted, I'd like to invite shareholders to submit any questions regarding resolution. We'll address -- I don't think we've got any questions at the moment on the financials, but if they come through, we'll address those at the end of the meeting with the general questions. We now turn to the formal resolution set out in Notice of Meeting. I now move to resolution 2, which is to consider and adopt the remuneration report. Before I put the motion, I would like to outline the approach to remuneration. The Monash IVF Group remuneration framework continues to be focused on driving a performance-based culture by linking executive remuneration to strategic objectives, both financial and nonfinancial. Executive remuneration in financial year 2020 remains at levels which are competitive with executives in comparable companies and roles. Fixed remuneration sits at or below the industry benchmark with a high proportion of remuneration at risk relative to industry peers. In response to the challenges faced in the 2020 financial year, and considering circumstances and performances during this time, the following remuneration outcomes relate to financial year '20 and '21. Firstly, total fixed remuneration consists of a base salary as well as nonmonthly benefits and superannuation. Increases to the 2020 financial year fixed type of remuneration for KMPs and executives have been placed on hold for review in January '21. Second, the short-term incentive as a variable component of remuneration is designed to focus on strategic objectives prioritized by the Board for the financial year, consists of both a nonfinancial component, being a measure of performance against our key financial '20 strategic priorities, including patient engagement, clinician engagement, employee engagement, market share and scientific success rates. The quantified threshold for each metric was set to require improvement over historical performance, and the stretch targets required substantial improvement in outcomes. The financial component is a measure of the group EBITDA compared to budgeted EBITDA, and payment for the KMP in financial '20 reflects the achievement of nonfinancial metrics ranging from 15% to 20%. No STI relating to the financial measure was payable. It should be noted that the financial '21 financial metric will be changed from group EBITDA to a group earnings per share to further align variable incentives to shareholder value. Thirdly, long-term incentives is a performance right plan with vesting rights dependent upon the satisfaction of predefined performance hurdles and continuous employment. The LTI aims to maintain a focus on sustainable long-term growth and returns and provides appropriate balance to the annual results linked to STI. Financial year ended '18 plans relating to EPS and TSR performance hurdles were not met for the testing period between financial year '18 and '20, and accordingly, no LTI vested or LT offers made during that period. Regarding nonexecutive director fees, there has been no increased to directors' fees in the 2021 financial year. There have been 2 changes to directors and KMPs in the 2020 highlighted in the remuneration report. Firstly, Christy Boyce, a non-executive director, tendered her resignation on the 29th of June. Catherine West, a nonexecutive director, was appointed in September '20 to replace Christy Boyce. On the 27th of March '20, Brett Comer, the Chief Executive Officer -- Operations Officer, tended his resignation, and Hamish Hamilton was appointed to the Chief Operations Officer on the 30th of March '20. The Monash IVF Group remuneration work will continue to focus on executive remuneration to assist on rewarding and recognizing our exceptional people, attracting and retaining the highest caliber people with diverse experience and capabilities. The Monash IVF Group remuneration frameworks continue to provide focus on both financial and nonfinancial drivers of sustainable, profitable growth and long-term value for creation for our shareholders. In accordance with Section 250R2 of the Corporations Act, the remuneration report is put to shareholders for adoption. The remuneration report is set out on pages 41 to 55 within the 2020 Annual Report. The vote on this is advisory only and does not bind the directors of the company. If not already submitted, I'd like you to invite shareholders to submit any questions regarding this resolution. I understand we don't have anything on remuneration, but if they come through before the end of the meeting, we'll address them. I now put the resolution to the meeting and advise that there at 255,733,159 proxy votes in favor of the resolution; 2,938,571 proxy votes against; 511,757 open votes; and 1,274,351 abstentions. In accordance with the authorization of the proxy form, undirected proxies given to the Chairman will be voted in favor of the resolution. To facilitate participation by all shareholders, I direct that a poll be taken on this item. As a reminder, please cast your vote if you have not already done so. Resolutions for item 3a, 3b and 3c relate to the election of 3 directors, Ms. Catherine West and Dr. Richard Henshaw and myself, Richard Davis. The listing rules require at least 1 director to retire, [ mandatory ] reelection following 3 years from their last reelection and for the first AGM from their initial appointment to the Board. In accordance with the provisions of the constitution and being eligible, Dr. Richard Henshaw and myself, Richard Davis, offer ourselves for reelection. In addition, Ms. Catherine West is nominated for reelection following her appointment in September '20. These resolutions are proposed as ordinary resolutions and will be approved if passed by more than 50% of the votes cast by members entitled to vote on these resolutions. As the first item is my reelection, I will pass on -- pass the chair to Zita Peach, director's chair, in relation to resolution 3a.

Thanks, Richard. Resolution for item 3a relates to the reelection of Richard Davis, a nonexecutive of the company and, being eligible, offers himself for election to be reelected as a director of the company. Richard Davis joined the Board in June 2014 and is currently serving as a nonexecutive director of Invocare Limited and Chairman of Australian Vintage Ltd. I would now ask, Richard, if you'd like to say a few words.

Thank you, Zita. I've been a director and Chairman of Monash since it listed back in 2014. Hopefully, during that period, I've added value to the Board and management, utilizing the experience I've gained firstly as a CEO of a listed entity and more recently as a nonexecutive director of 2 other listed companies. This experience has been invaluable as the company faced the challenges of low-cost operators, competition from ex-clinicians and, more recently, COVID-19. It goes without saying that I enjoy being part of an industry that is so meaningful in bringing joy to so many people. Hopefully, with your support, I can continue my contribution. We did receive 2 questions, one from the Australian Shareholders' Association, John Whittington, and it's probably appropriate that I answer them now.

The first one was in relation to what I have learned as Chair of a company having gone through COVID. And the second one is a question which asks or -- what has been my contribution over the last 3 years to the company and to the Board. In relation to the first one, John, I think COVID has taught all chairs, all boards that we now have to plan for these types of events. The importance then is paramount that you have a great, experienced team that's around you that can work together to formulate a plan to get through these types of events. And we've been very lucky at Monash that we had that team, and as we've talked about earlier, we've come out stronger than ever. We need a team that has and can influence regulators during this period. I can assure you that our senior clinicians have worked with the regulators and the authorities, keeping in mind how we can keep our type of business operating but also working with the regulators to make sure the general health of the community is maintained. And I think more recently, what it's taught me is that we have to keep an eye on our people, in particular, people that have been working hard for so long that they're not fatigued, they're not facing depression because there's lots of things that happen in their own lives beside of work, and we need to keep an eye on that. And lastly, that when you go through something like this, we cannot be distracted from our core purpose, and that core purpose is to patient care and, hopefully, to deliver a successful pregnancy and then child for our patients to come. Now the second part of the question from John was what are the 3 things that I think I've helped contribute to the Board and to the company. And I think probably at the top of that is how we've managed ourselves through COVID and how we're coming out of COVID. I think the second one would be the management team that we've put together over the last few years, starting off with our CEO, Michael, and he's put together a very good team around him, which has led to the third contribution, working with management our 2022 strategic plan, which we are moving at a great rate through, and I'm very excited by that. On the negative side, I think the doctor retention has been an issue. And if you look at the financial performance of the company over the last 3 years, we've been hit by doctors leaving. And so a lot of the time we're spending at a Board level is working with management, working out how we can not only retain our doctors, but also attract doctors, and again, we've seen success of that this year. And the last thing goes back to the purpose. Our purpose -- and we start every Board meeting looking at the success rates in all our clinics across the group. And after all, that's why we're here today. So John, I hope -- I believe that answers your question, and I'll hand back to Zita.

Thank you. Thanks, Richard. If not already submitted, I'd like to invite shareholders to submit any questions regarding this resolution. I now put the resolution to the meeting, and I advise that there are 217,237,144 proxy votes in favor of the resolution; 42,576,691 proxy votes against; 495,555 open votes; and 464,544 absent -- sorry, abstaining. Undirected proxies given to the Chairman will be voted in favor of the resolution. To facilitate participation by all shareholders, I direct that a poll be taken on this item. As a reminder, please cast your vote if you have not already. I'd like to hand back to Richard.

Thanks, Zita. There was another question that came through whilst I was talking in relation to my nomination, and again, that came from the Australian Shareholders. And that was why there were so many votes against my reelection, and that was because of the quantum of our capital raising. There were a couple of shareholders that thought that the quantum was excessive. And in hindsight, one might argue that, but I would certainly say that when we went to the markets, we didn't know what the impact of COVID was going to be in our operations. We didn't know how long we were going to be locked down. We had a strategic plan that we couldn't afford to defer for a number of years, and we obviously wanted to come out strongly. So I can understand why those shareholders voted against my nomination, and they made that clear at the time, but that was the reason for that.

So resolutions for item 3B relates to the reelection of Dr. Richard Henshaw, an executive director of the company, and, being eligible, offers himself for election, being reelected as a director of the company. Richard Henshaw is currently a fertility specialist in the group and has been on the Board since June '14. Richard has served on many national bodies, including the Royal Australian -- Royal Australia and New Zealand College of the Obstetricians and Gynecologist Council, the IVF Medical Directors Group of the Australia and New Zealand and RTAC. Richard, would you like to say a few words in relation to your reelection?

Thank you, Richard. It is an honor to have the opportunity to stand for reelection as an executive director. Mr. Michael Knaap has assembled a great management team, and I have enormous respect for their achievements during this very difficult year. I hope to be able to continue to serve the company in the future. Thank you.

I would also make a point about Richard Henshaw's contribution during COVID. He, together with our medical directors across the countryside, have worked tirelessly to make sure that operations have continued in a safe manner for our patients, clinicians and for our staff, and he personally has worked with the regulators to make sure that, that has occurred. If not already submitted, I'd like to invite shareholders to submit any questions regarding this resolution. I now put the resolution to the meeting and advise that there are 226,748,520 proxy votes in favor of the resolution; 33,064,175 proxy votes against; and 497,550 -- 497,555 open votes; and 463,654 abstentions. Undirected proxies given to the Chairman will be voted in favor of the resolution. We will now pause for a few seconds to identify and collate any specific questions on this resolution. I don't think there's any other question, right? To facilitate participation by all shareholders, I direct that a poll be taken on this item. As a reminder, please cast your vote if you have not already. Resolution for item 3c relates to the election of Ms. Catherine West, a nonexecutive director of the company, and, being eligible, offers herself for election, be elected as a director of the company. Catherine joined the group in September '20 and is currently serving as a nonexecutive director of the ASX-listed Nine Entertainment, where she is the chair of the People and Remuneration Committee and a member of the Audit and Risk Committee. Catherine was previously on the board of Southern Phone, and she is currently holds a position of Vice President of the Sydney Breast Cancer Foundation at the Chris O'Brien Lifehouse. She is also a director of the NIDA Foundation and a Governor of the Wenona School. Catherine, would you like to say a few words in support of your election?