Propel Funeral Partners Ltd. · ASX:PFP
Propel Funeral Partners — Shareholder Meeting (November 2024)
44 slides from Propel Funeral Partners's shareholder meeting presentation, Nov 7, 2024
Slide 1: 2024 AGM – Addresses, Presentation and Trading Update
ASX ANNOUNCEMENT 7 November 2024 2024 AGM – Addresses, Presentation and Trading Update Attached are the addresses and accompanying presentation to be delivered by the Chairman and Managing Director of Propel Funeral Partners Limited (Company) at the Company’s 2024 Annual General Meeting (AGM) commen
Slide 2: 2024 Annual General Meeting
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses PROPEL FUNERAL PARTNERS LIMITED Thursday, 7 November 2024 (9.30am) 2024 Annual General Meeting Address from the Chairman, Brian Scullin: Slide 3 Good morning everyone. I’m Brian Scullin, Independent Chairman and Non-Execu
Slide 3: Address from the Chairman
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses Slide 5 After my introduction, Albin will provide some comments on last year’s financial results and a trading update, among other matters. The formal matters of the Meeting will then be addressed and you will have the op
Slide 4: Your board
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses As you would expect, the Board is mindful to strike the right capital structure to ensure the Company is appropriately funded without overstretching the balance sheet, so that Propel can continue to capitalise on growth o
Slide 5: Formal matters of the Meeting
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses Shareholders would be aware that during the last 12-18 months, there has been heightened interest and M&A activity in the deathcare industry both domestically and offshore. In Australia, we have seen InvoCare taken privat
Slide 6: Proxies received prior to the cut-off time
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses Address from the Managing Director, Albin Kurti: Slide 8 Thanks Brian. Good morning everyone, thank you for being here. First and foremost, I would like to acknowledge bereaved client families who farewelled loved ones du
Slide 7: FY24 highlights and dividend
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses In terms of growth: – Propel added 37 locations to its network in FY24, completing 11 new acquisitions in New South Wales, Queensland and New Zealand; – subsequent to year end, Propel has completed a previously announced
Slide 8: Address from the Managing Director
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses Slide 14 The chart on this slide shows Propel’s Average Revenue Per Funeral since FY15 which has grown at a compound annual growth rate of 3.2%. In FY24, Average Revenue Per Funeral increased by approximately 4% and, on a
Slide 9: Today's presentation
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses Those acquisitions are expected to contribute positively to Propel’s financial results in FY25 and beyond. Moving forward, the team remains active in exploring both organic and inorganic growth opportunities. The acquisit
Slide 10: FY24 was another record year for Propel
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses In conclusion, I think the three key ‘take-away’s’ from today’s presentation are: – one, FY24 was another record year for Propel. The Company achieved material growth in key financial and operating metrics, on the back of
Slide 11: How our network has evolved
2024 Annual General Meeting 7 November 2024 1
Slide 12: Our board and management
1. The Chairman’s introduction
Slide 13: Propel is focussed on a clearly defined growth strategy
“Propel is focussed on a clearly BRIAN SCULLIN defined growth strategy to acquire Independent Chairman & and operate assets within the Non-Executive Director death care industry in Australia and New Zealand.” Norwood Park – Canberra, ACT 3
Slide 14: Your board
Your board Focussed on delivering for stakeholders Brian Scullin Jennifer Lang Independent Chairman and Non-Executive Director (NED) Independent NED and Chair of the Audit & Risk Committee – Former Chair of Macquarie Point Development Corporation, Spark – NED, Chair of the Audit Committee and a memb
Slide 15: Agenda
Agenda 1. The Chairman’s introduction 2. Presentation from the Managing Director 3. Formal business and resolutions 4. Shareholder questions 5
Slide 16: Proxies received prior to the cut-off time
Proxies received prior to the cut-off time A total of 212 valid proxy forms were received, and respective shareholdings were accumulated and are summarised below: Resolution For Open Against Abstain 1 44,708,246 783,652 23,768,047 65,499 2 90,209,350 678,680 344,693 27,424 3 90,232,771 681,034 276,6
Slide 17: The Chairman's introduction
The Chairman’s introduction 1. Continued growth in FY24: Relative share price and index performance • material revenue and earnings growth (23 November 2017 to 6 November 2024) • ASX300 Index inclusion 2. Dividends: 125% Propel • 14.4cps fully franked in connection with FY24 (FY23: 14.0cps) 100% +12
Slide 18: Presentation from the Managing Director
2. Presentation from the Managing Director
Slide 19: FY24 was another record year for earnings growth
“FY24 was another record year for ALBIN KURTI Propel, which continued its track Managing Director record of delivering revenue and earnings growth.” Waikanae Funerals, – Waikanae, New Zealand 9
Slide 20: Key Highlights of FY24
Key Highlights of FY24 Revenue Funeral Volumes Average Revenue Per Funeral 1 TRADING1 $209.2m 21,655 $6,635 ~24% ~20% ~4% Operating EBITDA Operating NPAT (Pro Forma2) Cash Flow Conversion 2 EARNINGS1 $55.4m $23.4m ~99% ~21% ~12% ~360bps Dividend Gearing Ratio Funding Capacity4 CAPITAL 3 MANAGEME
Slide 21: Geographic Presence
Geographic Presence 198 operating locations1 (120 owned / 78 leased), including 38 cremation facilities and 9 cemeteries 1 August 2013 2 November 2024 Queensland Queensland 1 Western 30 Australia South Australia 15 46 New South Wales 11 1 ACT 19 Victoria 58 New Zealand Tasmania 18 Geographic footpri
Slide 22: Brand Portfolio
Brand Portfolio Diversified single and multi-site brands with strong local community awareness Australia NZ Pinegrove Funerals ismore Funeral Services Southern Funeral Home Acquisitions completed since 1 July 2023. 12
Slide 23: Track Record
Track Record Propel has maintained a strong growth trajectory Funeral volumes (#) 21,655 ~20% Revenue ($m) 209.2 ~24% 18,029 168.5 16,537 145.2 13,916 13,299 120.4 110.8 11,304 10,111 95.1 80.9 6,054 46.1 2,967 22.4 1,625 10.9 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY15 FY16 FY17
Slide 24: Average Revenue Per Funeral Growth
Average Revenue Per Funeral Growth Compound annual growth rate (CAGR) of ~3.2% since FY15 $6,635 ~4% on FY23 $6,398 (comparable up 5.5%) CAGR ~3.2% $6,038 $5,917 $5,672 $5,585 $5,508 $5,223 $5,099 $4,976 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 14
Slide 25: Cash Flow Conversion
Cash Flow Conversion Consistently strong 104.0% 103.4% 101.8% 100.2% 98.9% 99.0% 93.7% 96.5% 97.4% 95.4% ~99% average (since FY15) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 15
Slide 26: Increasing Number of Deaths
Increasing Number of Deaths Number of deaths is the most significant driver of revenue in the death care industry 1 Australia 2 New Zealand 2.9% CAGR 60,000 300,000 (2031-2040) 2.1% CAGR (2031-2040) 2.5% CAGR 50,000 1.9% CAGR 250,000 (2024-2030) (2024-2030) 40,000 200,000 0.9 % CAGR 0.8% CAGR (1990-
Slide 27: 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 ~21% ~25% Others Others ~74% ~70% ~1% ~9% 1. Note: 159,052 actual deaths (ABS data) for market size, 1,920 funerals performed by Propel
Slide 28: Acquisitions
Acquisitions Propel completed or announced ~$104 million1 on 12 acquisitions in FY24 (~$295 million1 since its IPO) 1 1. Olsens Funerals Jul-23 Sydney, NSW 2. J Fraser & Sons Jul-23 Southland, NZ 3. Harbour City Funeral Home Aug-23 Wellington, NZ 4. Terry Longley and Tong & Peryer Sep-23 Hastings &
Slide 29: Trading Update
Trading Update A record Q1 for Propel Q1 FY251: ✓ Revenue: ~$61.5m ~16% on the PCP ✓ Operating EBITDA: ~$16.5m ~15% on the PCP ✓ Funeral volumes: ~6,150 ~13% on the PCP ✓ ARPF (comparable) growth: ~3% in line with long term CAGR It should be noted that: − the Q1 FY25 trading results reflect contribu
Slide 30: Formal business and resolutions
3. Formal business and resolutions
Slide 31: Formal business: Item 1
Formal business: Item 1 Item 1: Financial report, directors’ report and auditors’ report “To receive and consider the Company’s financial report, director’s report and auditor’s report for the year ended 30 June 2024.” Note: there is no requirement for shareholders to approve these reports 21
Slide 32: Formal business: Item 2
Formal business: Item 2 Item 2: Remuneration report “That the remuneration report that forms part of the directors’ report of the Company for the financial year ended 30 June 2024 be adopted.” Note: this resolution is advisory only and does not bind the directors of the Company. 22
Slide 33: Formal business: Item 3
Formal business: Item 3 Item 3: Re-election of existing Director “That Ms Jennifer Lang, being a director of the Company who retires by rotation under rule 6.7(b) of the Company’s constitution, and being eligible, is re-elected as a director of the Company.” 23
Slide 34: Formal business: Item 4
Formal business: Item 4 Item 4: Re-election of existing Director “That Ms Naomi Edwards, being a director of the Company who retires by rotation under rule 6.7(b) of the Company’s constitution, and being eligible, is re-elected as a director of the Company.” 24
Slide 35: Formal business: Item 5
Formal business: Item 5 Item 5: Resolution relating to the ratification of the issuance of ordinary shares (acquisition of IC Mark) “That, for the purposes of Listing Rule 7.4 and for all other purposes, approval is given to ratify the prior issue of 19,086 fully paid ordinary shares in the capital
Slide 36: Formal business: Item 6
Formal business: Item 6 Item 6: Resolution relating to the proposed issue of ordinary shares (Placement) “That, for the purposes of Listing Rule 7.4 and for all other purposes, approval is given to ratify the prior issue of 15,533,999 fully paid ordinary shares in the capital of the Company to vario
Slide 37: Formal business: Item 7
Formal business: Item 7 Item 7: Resolution relating to the ratification of the issuance of ordinary shares (acquisition of Southern Funeral Home) “That, for the purposes of Listing Rule 7.4 and for all other purposes, approval is given to ratify the prior issue of 44,971 fully paid ordinary shares i
Slide 38: Formal business: Item 8
Formal business: Item 8 Item 8: Resolution relating to the ratification of the issuance of ordinary shares (acquisition of Decra Art) “That, for the purposes of Listing Rule 7.4 and for all other purposes, approval is given to ratify the prior issue of 84,534 fully paid ordinary shares in the capita
Slide 39: Shareholder questions
4. Shareholder questions PROPEL FUNERAL PARTNERS PrP
Slide 40: Votes to be counted
Votes to be counted 30
Slide 41: Meeting close – thank you
Meeting close – thank you 31
Slide 42: Definitions
Definitions ABS means the 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 rel
Slide 43: 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 44: Propel Funeral Partners
PROPEL FUNERAL PARTNERS PrP
Propel Funeral Partners — Shareholder Meeting (November 2024) on 6ix