Propel Funeral Partners Ltd. · ASX:PFP
Propel Funeral Partners — Shareholder Meeting (November 2019)
44 slides from Propel Funeral Partners's shareholder meeting presentation, Nov 19, 2019
Slide 1: ASX Announcement: 2019 Annual General Meeting
ASX ANNOUNCEMENT 19 November 2019 2019 Annual General Meeting Attached are the addresses and accompanying presentation to be delivered by the Chairman and Managing Director at the 2019 Annual General Meeting of Propel Funeral Partners Limited (Propel) commencing today at 9.30am (Sydney time). Please
Slide 2: Chairman's and Managing Director's Addresses
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses PROPEL FUNERAL PARTNERS LIMITED Tuesday, 19 November 2019 Annual General Meeting Address from the Chairman, Brian Scullin: Slide 3 Good morning ladies and gentlemen. I’m Brian Scullin, Independent Chairman and Non-Executi
Slide 3: Chairman's and Managing Director's Addresses (continued)
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses At the conclusion of the Meeting, please join us for some light refreshments. My fellow directors and I are looking forward to having an opportunity to interact with you. Slide 6 The table on the screen shows the proxies
Slide 4: Chairman's and Managing Director's Addresses (continued)
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses Obviously, there is a balance between prudently taking advantage of low interest rates and liquidity in debt markets, without over stretching the balance sheet. As you would expect, the Board is mindful to strike the righ
Slide 5: Managing Director's address
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 and thanks for coming. Firstly, I’d like to thank all of the staff that work at Propel’s various locations in Australia and New
Slide 6: Managing Director's address (continued)
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses In terms of growth: • Propel ended FY19 with 120 locations, 17 more than at the end of the prior year and has subsequently added 8 locations to its network; • and management continued to execute Propel’s acquisition led g
Slide 7: Managing Director's address (continued)
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses Slide 14 In terms of earnings growth: • Operating EBITDA was 23.8 million dollars in FY19, up 10.6%. • Operating NPAT was 13.3 million dollars in FY19, up 8.1%. Slide 15 As you can see from this chart, Propel’s Average Re
Slide 8: Managing Director's address (continued)
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses Slide 19 Since the IPO two years ago, Propel has deployed and committed approximately 125 million dollars on acquisitions, which are geographically spread across Australia and New Zealand. In total, those acquisitions are
Slide 9: Managing Director's address: outlook
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses In that regard, Propel is in advanced discussions with its debt funding partner, Westpac, to expand the Company’s debt facilities and a funding update will be provided to the market, when appropriate. Moving to our outloo
Slide 10: Key take-aways and close
Propel Funeral Partners Limited – Chairman’s and Managing Director’s Addresses In conclusion, I think the 3 key take-aways from today’s presentation are: • one, Propel achieved material revenue and earnings growth in FY19, despite below trend death volumes, particularly in the first half of the fina
Slide 11: 2019 Annual General Meeting
2019 ANNUAL GENERAL MEETING 19 November 2019
Slide 12: 1. The Chairman's introduction
1. The Chairman’s introduction
Slide 13: Chairman's introduction
BRIAN SCULLIN “Propel remains focussed on a clearly defined investment Independent Chairman & strategy to acquire Non-Executive Director infrastructure and assets which operate within the death care industry in Australia and New Zealand.” 3
Slide 14: Your Board
Your Board Focussed on delivering for stakeholders Brian Scullin Fraser Henderson Independent Chairman and Non-Executive Director (NED) Executive Director – Head of M&A and – Chair of Tasmanian Development Board, Macquarie Point General Counsel/Company Secretary Development Corporation and OAK Possi
Slide 15: Items of business
Items of business 1. The Chairman’s introduction 2. Presentation from the Managing Director and Head of Investments 3. Formal business and resolutions 4. Shareholders’ questions 5
Slide 16: Proxies received prior to the cut off time
Proxies received prior to the cut off time A total of 167 valid proxy forms were received, and respective shareholdings were accumulated and are summarised below: Resolution resolution For as set out below: Open Against Abstain 2 41,544,569 1,617,550 12,880 141,100 3 22,390,530 1,608,727 192,647 199
Slide 17: The Chairman's introduction
The Chairman’s introduction 1. Resilient financial results in FY19 2. Dividends of 11.5 cents per share fully franked 3. Clearly defined strategy underpinned by: • the growing and ageing population • industry fragmentation 4. Funding 5. Delivering shareholder value 7
Slide 18: 2. Presentation from the Managing Director
2. Presentation from the Managing Director
Slide 19: Managing Director's introduction
ALBIN KURTI “FY19 was another record year, with Propel achieving growth in Managing Director & key financial metrics, despite Head of Investments below trend death volumes in 1HFY19.” 9
Slide 20: Key highlights for FY19
Key highlights for FY19 1 Revenue: Volumes: Average Revenue Per Funeral: TRADING $95.1 11,304 $5,585 million funerals 17.6% 11.8% 1.4% YoY / 2.8% LFL 2 Operating EBITDA: Operating NPAT: Cash Flow Conversion: EARNINGS $23.8 $13.3 97.4% million million 10.6% 8.1% 0.9% 3 Total Dividends: Net Debt: Expa
Slide 21: Geographic presence
Geographic presence 128 locations (71 owned / 57 leased), including 31 cremation facilities and 9 cemeteries August 2013 November 2019 Queensland Queensland 1 Western 24 Australia South Australia 11 31 New South Wales 3 1 ACT 17 Victoria 22 New Zealand Tasmania 19 Geographic footprint is difficult t
Slide 22: Brand portfolio
Brand portfolio Diversified single and multi-site brands with strong local community awareness Australia New Zealand Pinegrove Funerals ismore Funeral Services Acquired or signed binding legal documentation during and since FY19 12
Slide 23: Volume and revenue growth
Volume and revenue growth Propel has maintained a strong growth trajectory Funeral volumes Revenue ($m) 11,304 95.1 10,111 11.8% 17.6% 80.9 6,054 46.1 2,967 22.4 1,625 10.9 906 465 6.0 278 1.2 2.2 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 13
Slide 24: Earnings growth
Earnings growth Propel’s earnings have proved resilient despite soft market conditions in 1H FY19 Operating EBITDA ($m) Operating NPAT ($m) 23.8 13.3 21.5 10.6% 12.3 8.1% 12.3 5.5 5.8 2.9 3.1 1.5 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 14
Slide 25: Average Revenue Per Funeral growth
Average Revenue Per Funeral growth Compound annual growth rate (CAGR) of ~2.7% since FY14 CAGR ~2.7% $5,585 $5,508 1.4% YoY 2.8% LFL $5,223 $5,099 $4,976 $4,899 FY14 FY15 FY16 FY17 FY18 FY19 15
Slide 26: Cash Flow Conversion
Cash Flow Conversion Cash Flow Conversion has been consistently strong, averaging ~98% since FY15 120.0% 104.0% 98.9% 97.4% 100.0% Operating Cash Flow 96.5% 12.3% to $23.2 million 93.7% 80.0% 60.0% 40.0% 20.0% 0.0% FY15 FY16 FY17 FY18 FY19 16
Slide 27: 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 2.1% CAGR (2026-2050) (2026-2050) 300,000 50,000 2.4% CAGR 1.0% CAGR 250,000 (2017-2026) 0.7% CAGR (2017-2026) 0.9% CAGR 40,000 (1990-201
Slide 28: Market Share estimate (funeral volumes)
Market Share estimate (funeral volumes) Propel has increased its market share in the highly fragmented Australian funeral industry CY151 CY182 InvoCare InvoCare ~24.6% ~22.6% Others Others ~74.2% ~71.9% ~1.2% ~5.5% 1Note: 159,052 actual deaths (ABS data) for market size, 1,920 funerals performed by
Slide 29: Acquisitions (since IPO)
Acquisitions (since IPO) Propel has committed $124.6 million1,3 on acquisitions since its IPO Funeral Third Party Australia Announced Volumes Cremations Revenue Brindley Group (VIC, NSW) December 2017 1,350 - A$11.0m Norwood Park (ACT, NSW, QLD) January 2018 - 2,000 A$4.8m Newhaven NQ (QLD) June 201
Slide 30: Acquisition of Gregson & Weight
Acquisition of Gregson & Weight Gregson & Weight is the largest funeral operator on the Sunshine Coast in Queensland Overview: - Performs approximately 1,650 funerals per annum - Acquisition included: • three substantial freehold properties and vacant land (totalling circa 13 hectares) • seven chape
Slide 31: Capital management
Capital management Propel has a current liquidity buffer of circa $17 million Liquidity summary (as at 18 November 2019) Comments Debt facilities Debt facility limits / maturity: $ million - Tranche A (matures in August 2021) 50.0 – Expanded to $100m in August 2019 - Tranche B (matures in August 202
Slide 32: Outlook
Outlook Propel is well positioned, focussed on its growth strategy and has started FY20 positively Record quarter: Propel has started FY20 with positive trading momentum, with its financial results for the three months ended 30 September 2019 (Q1 FY20) materially above the PCP. In Q1 FY201, Propel:
Slide 33: 3. Formal business and resolutions
3. Formal business and resolutions
Slide 34: Item 1: Financial report, directors' report and auditor's report
Formal business - item 1 Item 1: Financial report, directors’ report and auditors’ report “To receive and consider the Company’s financial report, directors’ report and auditor’s report for the year ended 30 June 2019.” Note: there is no requirement for shareholders to approve these reports. PROPEL
Slide 35: Item 2: Re-election of existing Director
Formal business - item 2 Item 2: 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” PROPEL FUNERAL 25 PARTNERS
Slide 36: Item 3: Adopt the remuneration report
Formal business - item 3 Item 3: Resolution to adopt the remuneration report “That the remuneration report that forms part of the director’s report of the Company for the financial year ended 30 June 2019 be adopted.” PROPEL FUNERAL 26 PARTNERS
Slide 37: Item 4: Resolution relating to financial assistance
Formal business - item 4 Item 4: Resolution relating to financial assistance "That the Company approve the transactions described in the Explanatory Statement (Financial Assistance) accompanying this resolution (which forms a part of this resolution) and all elements of those transactions that may c
Slide 38: Item 5: Ratification of issuance of ordinary shares (Morleys)
Formal business - item 5 Item 5: Resolution relating to the ratification of the issuance of ordinary shares (Morleys) “That, for the purposes of Listing Rule 7.4 and for all other purposes, approval is given to ratify the prior issue of a total of 344,828 fully paid ordinary shares in the capital of
Slide 39: Item 6: Proposed issuance of ordinary shares (Dils Group)
Formal business - item 6 Item 6: Resolution relating to the proposed issuance of ordinary shares (Dils Group) “That, for the purposes of Listing Rule 7.1 and for all other purposes, approval is given to issue a total of 1,210,589 fully paid ordinary shares in the capital of the Company to Stephen Di
Slide 40: 4. Shareholder's questions
4. Shareholder’s questions
Slide 41: Meeting Close – Thank you
Meeting Close – Thank you PROPEL FUNERAL 31 PARTNERS
Slide 42: Definitions
Definitions ARPF means Average Revenue Per Funeral excluding disbursements and delivered prepaid funeral impacts. Cash Flow Conversion means Operating EBITDA converted into ungeared, pre-tax operating cash flow. CY means calendar year. LFL means like for like being businesses held for the entire cur
Slide 43: 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 44: Propel Funeral Partners
PROPEL FUNERAL PARTNERS PrP
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