Propel Funeral Partners Ltd. · ASX:PFP
Propel Funeral Partners — Macquarie Australia Conference 2024
28 slides from Propel Funeral Partners's conference presentation, May 9, 2024
Slide 1: ASX Announcement: Presentation to Macquarie Australia Conference
ASX ANNOUNCEMENT 9 May 2024 Presentation to Macquarie Australia Conference Propel Funeral Partners Limited (ASX: PFP) (Propel or Company) Managing Director and Co-Founder, Albin Kurti, is giving the attached presentation at the 2024 Macquarie Australia Conference today. The presentation includes com
Slide 2: Macquarie Australia Conference
Macquarie Australia Conference 9 May 2024 1
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation contains summary information about Propel Funeral Partners Limited No representation or warranty, express or implied, is made as to the fairness, accuracy, (ACN 616 909 310) (Propel) and its activities current as at the date of this presentation. Pro
Slide 4: Charlie Munger quote
“ All I want to know is where I'm going to die, so I'll never go there ” Charlie Munger 3
Slide 5: Australian Deaths: 1923 to 2023
Australian Deaths: 1923 to 2023 200,000 160,000 120,000 80,000 40,000 0 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013 2023 Source: 1923-2022: ABS, Deaths, Australia 2022, Table 2 Deaths registered – 1917 to 2022 (released in September 2023). 2023: ABS, Provisional Mortality Statistics for 2023 (
Slide 6: Australian Deaths: 1923 to 2023 (Natural Fluctuations)
Australian Deaths: 1923 to 2023 (Natural Fluctuations) 200,000 160,000 120,000 80,000 40,000 0 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013 2023 10.0% Annual change 5.0% 0.0% -5.0% -10.0% Source: 1923-2022: ABS, Deaths, Australia 2022, Table 2 Deaths registered – 1917 to 2022 (released in Septe
Slide 7: Deaths - Annual Change: 2020 to 2023 (COVID impacts)
Deaths - Annual Change: 2020 to 2023 (COVID impacts) 20% “Pull forward” “Catch-up” “Excess mortality” “Rebase” 15% 10% 5% 0% -5% -10% -15% -20% 2020 2021 2022 2023 Source: US, UK and Sweden - database.earth, Historic Population Deaths. AU - 2020-2022: ABS, Deaths, Australia 2022, Table 2 Deaths regi
Slide 8: It's a girl!
It’s a girl! 7
Slide 9: Australian Fertility Rate
Australian Fertility Rate 3.5 First of the ‘baby boomer’ generation: • born in 1946 • aged ~78yo in 2024 3.0 2.5 Baby boomers 2.0 1.5 1934 1942 1950 1958 1966 1974 1982 1990 1998 2006 2014 2022 Source: 1934-2022: ABS, Births, Australia 2022 (released in September 2023). the historical CAGR due to CO
Slide 10: Australians aged 80+ years
Australians aged 80+ years 2.75m 1.20m 0.68m 0.29m 1984 2004 2024 2044F Source: ABS, Population clock and pyramid, years 1984, 2004, 2024 and 2044. been excluded from the historical CAGR due to COVI 9
Slide 11: Australians aged 80+ years
Australians aged 80+ years 2.75m Median age at death has been stable at 81-82 years old Median Age at Death (years) 80 1.20m 60 0.68m 40 0.29m 20 0 1984 2004 2024 2044F 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: ABS, Population clock and pyramid, year 1984, 2004, 2024 and 2044. b
Slide 12: Australian Deaths: 1990 to 2040
Australian Deaths: 1990 to 2040 ‘Death boom’ expected 2.9% CAGR 300,000 (2031-2040) 2.5% CAGR 250,000 (2024-2030) 200,000 0.9 % CAGR (1990-2019) 150,000 100,000 50,000 - 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Actual deaths Projected deaths (2024-2030) Projected deaths (2031-2040) 1.
Slide 13: Company Overview
Company Overview PROPEL FUNERAL PARTNERS PrP
Slide 14: Geographic Presence
Geographic Presence 194 operating locations (117 owned / 77 leased), including 38 cremation facilities and 9 cemeteries 1 August 2013 2 May 2024 Queensland Queensland 1 Western 30 Australia South Australia 15 45 New South Wales 11 1 ACT 19 Victoria 55 New Zealand Tasmania 18 Geographic footprint is
Slide 15: Brand Portfolio
Brand Portfolio Diversified single and multi-site brands with strong local community awareness Australia NZ Pinegrove Funerals ismore Funeral Services Southern Funeral Home Acquisitions completed or announced since 1 July 2023. 14
Slide 16: Track Record
Track Record 46.0 Funeral volumes 18,029 Operating EBITDA ($m) 16,537 39.0 36.3 13,916 32.4 13,299 27.4 22.8% 11,304 10,637 17.4% 23.8 10,111 23.1 9,061 21.5 6,054 12.3 2,967 5.8 1,625 3.1 465 906 278 1 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY15 FY16 FY17 FY18 FY19
Slide 17: Average Revenue Per Funeral Growth
Average Revenue Per Funeral Growth Compound annual growth rate (CAGR) of ~3.1% since FY14 $6,630 ~4.5% on PCP CAGR ~3.1% $6,346 (comparable up ~6%) $6,038 $5,917 $5,672 $5,508 $5,585 $5,223 $5,099 $4,899 $4,976 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1H FY23 1H FY24 16
Slide 18: Cash Flow Conversion
Cash Flow Conversion Consistently strong and has averaged ~99% since FY15 104.0% 103.4% 101.8% ~99% average 98.9% 100.2% 99.2% 100.8% 96.5% 97.4% 93.7% (since FY15) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1H FY23 1H FY24 17
Slide 19: Market share estimate (funeral volumes)
Market share estimate (funeral volumes) Propel has increased its market share in the highly fragmented Australian funeral industry 1 CY151 2 CY232 InvoCare InvoCare ~25% ~21% Others Others ~74% ~70% ~1% ~9% 1. Note: 159,052 actual deaths (ABS data) for market size, 1,920 funerals performed by Propel
Slide 20: Acquisitions
Acquisitions Propel has committed ~$104 million1 on acquisitions YTD in FY24 (~$295 million1 since its IPO) 1 1H FY24: 1. Olsens Funerals Jul-23 Sydney, NSW Consideration: ~$78 million 3 2. J Fraser & Sons Jul-23 Southland, NZ Revenue : ~$30 million 3. Harbour City Funeral Home Aug-23 Wellington, NZ
Slide 21: Performance Summary Since IPO
Performance Summary Since IPO Propel’s share price has outperformed the ASX300 since the IPO in November 2017 Relative share price and index performance (23 November 2017 to 30 April 2024) 125% Total shareholder return3 Propel 100% +98.1%1 ~92% 75% 50% ASX300 Total shareholder value accretion4 25% +
Slide 22: Summary, Trading Update and Guidance
Summary, Trading Update and Guidance
Slide 23: Summary
Summary Growth track record, stable management, defensive market position and sector thematic are attractive characteristics 1 Long term growth profile • Strong growth track record (>15 fold increase in Revenue and Operating EBITDA since FY15) • Consistent growth in key operating metrics (funeral vo
Slide 24: Trading Update (YTD to 30 April 2024)
Trading Update (YTD to 30 April 20241) Propel is on track to report another record year in FY24 Growth1, 2 Reflects: Revenue: 25% ➢ part period contributions from nine acquisitions completed YTD in FY24 ➢ full period contributions from five acquisitions completed in FY23 ➢ funeral volume contraction
Slide 25: FY24 Guidance Reaffirmed
FY24 Guidance Reaffirmed Propel reaffirms its FY24 guidance range1 for Revenue of $200m-$220m and Operating EBITDA of $54m-60m Revenue ($m) Operating EBITDA ($m) 220.0 High1 60.0 High1 200.0 Low1 54.0 Low1 168.5 46.0 145.2 39.0 36.3 120.4 32.4 110.8 95.1 23.8 80.9 21.5 FY18 FY19 FY20 FY21 FY22 FY23
Slide 26: Q&A
swe ee % Ze re PROPEL 6. Q&A FP P
Slide 27: Definitions
Definitions ABS means Australian Bureau of Statistics. Average Revenue Per Funeral means revenue from funeral operations, excluding direct disbursements (such as third party cemetery fees and third party cremation fees) and delivered pre-paid impacts, divided by the number of funerals in the relevan
Slide 28: Propel Funeral Partners
PROPEL FUNERAL PARTNERS PrP
Propel Funeral Partners — Macquarie Australia Conference 2024 on 6ix