Propel Funeral Partners Ltd. · ASX:PFP
Propel Funeral Partners — Bell Potter Emerging Leaders Conference 2018
24 slides from Propel Funeral Partners's conference presentation, Oct 24, 2018
Slide 1: ASX Announcement: Bell Potter Emerging Leaders Conference Presentation
ASX ANNOUNCEMENT 24 October 2018 The Manager ASX Market Announcements ASX Limited, Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam ASX Announcement Propel Funeral Partners Limited (PFP) Bell Potter Emerging Leaders Conference Presentation Please find attached PFP presentatio
Slide 2: Bell Potter Emerging Leaders Conference Presentation
BELL POTTER EMERGING LEADERS CONFERENCE PRESENTATION Albin Kurti, Managing Director 24 October 2018
Slide 3: Important notice and disclaimer
Important notice and disclaimer This presentation contains summary information about Propel Funeral Partners Limited (ACN 616 909 310) (Propel) and its activities current as at the date of this presentation. Propel assumes no obligation to update such information. The information in this presentatio
Slide 4: Agenda
Agenda 1. Key highlights for FY18 2. Business overview 3. Acquisition update and industry ‘tail winds’ 4. Trading update and outlook 5. Q&A Appendix 3
Slide 5: 1. Key highlights for FY18
1. Key highlights for FY18
Slide 6: Key highlights for FY18
Key highlights for FY18 1 Revenue: 76% to $80.9 million (FY17: $46.1 million) TRADING UPDATE Funeral volumes: 67% to 10,111 (FY17: 6,054) ARPF1: 5.5% to $5,508 (FY17: $5,223) 2 Operating EBITDA: 75% to $21.5 million (FY17: $12.3 million) EARNINGS2 Operating NPAT3: 125% to $12.3 million (FY17: $5.5 m
Slide 7: Prospectus forecasts achieved
Prospectus forecasts achieved Propel outperformed the key Prospectus forecasts for FY18 FY18 FY18 Pro forma Prospectus Achieved Comments actual Forecast Operating metrics Number of locations 103 80 ✓ Number of funerals 10,111 9,907 ✓ 1 Average Revenue Per Funeral $5,508 $5,330 ✓ Financial metrics Gr
Slide 8: 2. Business overview
2. Business overview
Slide 9: Geographic presence
Geographic presence 108 locations (54 freehold / 54 leasehold), including 24 cremation facilities and 7 cemeteries June 2013 October 2018 Queensland Queensland 1 Western 14 Australia South Australia 10 28 New South Wales 3 1 ACT 17 Victoria 16 New Zealand Tasmania 19 FY12 FY13 FY14 FY15 FY16 FY17 FY
Slide 10: Brand portfolio
Brand portfolio Diversified single and multi-site brands with strong local community awareness QLD NSW/ACT VIC TAS SA WA NZ Pinegrove Funerals ismore Funeral Services Acquired since 1 July 2017 9
Slide 11: Volume and revenue growth
Volume and revenue growth Propel has maintained a strong growth trajectory Funeral volumes Revenue ($m) 10,111 80.9 2% 10% 9,907 Prospectus forecast 73.7 Prospectus forecast 6,054 46.1 2,967 22.4 1,625 10.9 906 6.0 465 278 1.2 2.2 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Slide 12: Earnings growth
Earnings growth Propel has maintained a strong growth trajectory Operating EBITDA ($m) Operating NPAT1 ($m) 21.5 12.3 21.1 16% Guidance 19% 18.4 10.4 Prospectus Prospectus forecast forecast 12.3 5.5 5.8 2.9 3.1 1.5 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 . 1 Net profit after tax adjusted for the one
Slide 13: Average Revenue Per Funeral growth
Average Revenue Per Funeral1 growth 5 year compound annual growth rate (CAGR) of 3% $5,508 3% CAGR 3% $5,330 Prospectus $5,223 forecast $5,099 $4,976 $4,899 FY14 FY15 FY16 FY17 FY18 1Average Revenue Per Funeral excluding disbursements and delivered prepaid funeral impacts (ARPF) 12
Slide 14: 3. Acquisition update and industry 'tail winds'
3. Acquisition update and industry ‘tail winds’
Slide 15: Acquisition update
Acquisition update Propel is focussed on delivering its Investment Strategy 1 WA entry: Acquired Seasons Funerals DURING FY18 NSW/VIC expansion: Acquired Brindley Group ACT entry: Acquired Norwood Park (ACT/NSW/QLD) 2 QLD expansion: Acquired Newhaven Funerals NQ YTD FY19 Property acquisitions: Acqui
Slide 16: Increasing number of deaths
Increasing number of deaths Number of deaths is the most significant driver of revenue in the death care industry Australia1 New Zealand2 350,000 60,000 1.8% CAGR 2.2% CAGR (2025-2050) 300,000 (2025-2050) 50,000 1.1% CAGR 250,000 1.4% CAGR 0.6% CAGR (2016-2025) 40,000 0.9% CAGR (2016-2025) (1990-201
Slide 17: Death volumes fluctuate
Death volumes fluctuate Death volume growth is forecast to accelerate and prior YoY1 declines rebounded quickly Number of deaths per annum in Australia – 1990 to 20172 203k 180,000 161k +42k in 1 +41k in 27 years 13 years 160,000 140,000 120k 120,000 100,000 2 In 2030, death 80,000 volumes are 60,00
Slide 18: 4. Trading update and outlook
4. Trading update and outlook
Slide 19: Trading update and outlook
Trading update and outlook Record revenue and funeral volumes in Q1 FY19, despite soft market conditions 1 Q1 FY191: Record revenue (~$24 million, up ~20% on PCP2) and funeral volumes, with: TRADING • Operating EBITDA margin above 26%, consistent with FY18 UPDATE • LFL3 ARPF up on FY18 and within lo
Slide 20: 5. Q&A
5. Q&A
Slide 21: Appendix
Appendix
Slide 22: External management structure with 10 year escrow
External management structure with 10 year escrow Management Agreement and escrow provisions put shareholder returns first and align for the long term 1 Exclusivity ❑ The Manager works exclusively for Propel 2 ❑ No salaries or directors fees are paid to the Management Shareholders No performance = n
Slide 23: Simplified corporate structure
Simplified corporate structure Management Agreement QLD NSW/ACT VIC TAS SA WA NZ Property Trust Freehold Operating subsidiaries Properties 22
Slide 24: Propel Funeral Partners
PROPEL FUNERAL PARTNERS PrP
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