Bapcor Ltd · ASX:BAP
Bapcor — H1 FY2020 Earnings Presentation
34 slides from Bapcor's earnings presentation, Feb 12, 2020
Slide 1: H1 FY20 Results Presentation
H1 FY20 Results Presentation
Slide 2: H1 FY20 Results
1. H1 FY20 Results 2. H1 FY20 Result Details 3. Strategy Update 4. FY20 Trading Update / Outlook 2
Slide 3: H1 FY20 Headline Results
H1 FY20 Headline Results Record results in H1 FY20 on all key measures. Proforma excluding AASB 16 Leases Revenue EBITDA NPAT1 EPS Up 10.4% to Up 4.6% to Up 5.1% to Up 4.0% to $702.5M $79.4M $45.3M 15.94 cps Proforma including AASB 16 Leases Revenue EBITDA NPAT1 EPS Up 10.4% to Up 40.4% to Up 5.9% t
Slide 4: H1 FY20 – Highlights
H1 FY20 – Highlights Achievements • Record result in revenue, EBITDA, NPAT, EPS • Increase in revenue and EBITDA in every business segment • Result reflects resilience to economic conditions • Burson same store sales increased more than 5% • Heavy Commercial Trucks acquisition (Truckline) • Added 35
Slide 5: H1 FY20 – Financial Highlights
H1 FY20 – Financial Highlights H1 FY20 Variance AASB 16 H1 FY20 Variance Proforma H1 FY19 inc. AASB 16 YoY impact exc. AASB 16 YoY Revenue $’M 702.5 10.4% - 702.5 636.1 10.4% Gross Margin % 47.5% 0.4 pp - 47.5% 47.1% 0.4 pp EBITDA – proforma $’M 106.7 40.4% 27.2 79.4 76.0 4.6% EBITDA % 15.2% 3.2 pp
Slide 6: Summary of Key Performance Indicators
Summary of Key Performance Indicators Revenue* EPS (cps)* NPAT* Dividends per share Notes: * Based on proforma results excluding AASB 16. The impact of AASB 16 on NPAT was $0.3M. Estimated FY20 results have been used to derive CAGR. 6
Slide 7: Segment Results
Segment Results AUD $’M proforma exc. Revenue EBITDA1 EBITDA % Revenue AASB 16 H1 FY20 H1 FY19 % Change H1 FY20 H1 FY19 % Change H1 FY20 H1 FY19 Change Trade 279.3 257.4 8.5% 37.6 36.9 1.9% 13.5% 14.3% (0.9 pp) Bapcor NZ 84.3 79.8 5.7% 11.3 11.1 1.4% 13.4% 13.9% (0.6 pp) Specialist Wholesale 235.4 1
Slide 8: Business Segment Contribution to Results
Business Segment Contribution to Results Total Revenue Total EBITDA H1 FY20 H1 FY19 H1 FY20 H1 FY19 28% 25% 32% 30% 49% 50% 55% 58% 17% 17% 19% 20% Notes: Trade focused 83% 1. Trade includes Trade and Bapcor NZ segments 1 8
Slide 9: Burson Trade
Burson Trade Revenue and ‘Same Store Sales’ growth EBITDA % of Sales EBITDA $M Store Numbers 9
Slide 10: Burson Trade
Burson Trade $’M H1 FY20 H1 FY19 Change Achievements • Strong revenue growth Revenue 279.3 257.4 8.5% • Very successful 6 month promotion EBITDA 37.6 36.9 1.9% • Same store sales growth greater than 5% EBITDA % 13.5% 14.3% (0.9 pp) • 3 new stores to 184 stores (2 greenfield, 1 acquisition) • Equipme
Slide 11: Bapcor NZ
Bapcor NZ $’M H1 FY20 H1 FY19 Change Achievements Revenue 84.3 79.8 5.7% • Solid revenue and EBITDA growth in softening economy • 2 greenfield BNT stores growing total stores to 72 EBITDA 11.3 11.1 1.4% • Increased sales with major chains EBITDA % 13.4% 13.9% (0.6 pp) • New 6,000sqm SWG warehouse in
Slide 12: Specialist Wholesale
Specialist Wholesale Achievements $’M H1 FY20 H1 FY19 Change • Excluding Don Kyatt (Qld) light commercial truck, Truckline and Diesel Revenue 235.4 196.3 19.9% Drive acquisitions: EBITDA 24.8 20.5 20.9% • Revenue up 6.8% EBITDA % 10.5% 10.5% - • EBITDA up 5.2% • Revenue and profit growth particularl
Slide 13: Retail
Retail Achievements • Same stores sales growth – Autobarn flat, company owned stores $’M H1 FY20 H1 FY19 Change up 1.5%; franchise stores down 1.6% Revenue 137.4 135.0 1.8% • Total Autobarn stores 135 – a net increase of 1 store. Company owned stores up by 9 including 4 greenfield stores & 5 franchi
Slide 14: Thailand
Thailand Achievements • Now operating 6 locations in Bangkok district including procurement office • In December the first four stores achieved positive EBITDA • Stores making positive progress in new market dynamics • Good relationships established with significant workshop groups • As with any sta
Slide 15: H1 FY20 Results
1. H1 FY20 Results 2. H1 FY20 Result Details 3. Strategy Update 4. FY20 Trading Update / Outlook 15
Slide 16: Summary Income Statement
Summary Income Statement • Revenue growth of 10.4% Pro-forma, $’M exc. AASB 16 H1 FY20 H1 FY19 Change • Gross margin % up 0.4 percentage points Revenue 702.5 636.1 10.4% Gross Profit 333.9 299.5 11.5% • Continual focus on margin management and flow Margin (%) 47.5% 47.1% +0.4 pp through from optimis
Slide 17: Summary Cash Flows
Summary Cash Flows • Cash generated excluding acquisitions Proforma $’M H1 FY20 Inc. AASB 16 Exc. AASB 16 negative $0.3M. EBITDA 106.1 79.4 Operating cash flow before finance, transaction and • Cash conversion of 87.5% (Dec 18 59.5%) tax costs 92.8 67.3 Cash conversion 87.5% 84.7% • Capex Financing
Slide 18: Summary Balance Sheet
Summary Balance Sheet • Net Debt/Cash $’M H1 FY20 H1 FY20 FY19 Inc. AASB 16 Exc. AASB 16 • Proforma net debt1 at December 2019 is $403.1M (June 2019: $336.3M) Cash 43..0 43.0 47.6 • Represents annualised leverage ratio of 2.3X on a twelve month Trade and other receivables 178.2 178.2 162.5 annualise
Slide 19: H1 FY20 Results
1. H1 FY20 Results 2. H1 FY20 Result Details 3. Strategy Update 4. FY20 Trading Update / Outlook 19
Slide 20: 5 Year Strategy / Targets
5 Year Strategy / Targets “Asia Pacific’s leading provider of vehicle parts, accessories, equipment,service and solutions” 20
Slide 21: Strategy Summary
Strategy Summary No change to targets – consistent, specific, measurable targets. Significant growth still to come. • Grow sales • Organic (circa 2% pa) • Footprint expansion - Burson 10-12 stores pa - Retail up to 10 stores pa - NZ 5 stores pa - Light Com 5 locations pa - Heavy Com 10 locations pa
Slide 22: Strategic Initiatives Update
Strategic Initiatives Update • Warehouse Management System – Tier 1 System -Manhattan – implemented Nunawading DC Jan 20 • Warehouse Evolution Program – Consolidated DC Melbourne (Tullamarine) - using latest technology – target Jan 21 • Point of Sale System Retail – state of the art retail POS – imp
Slide 23: Our New Melbourne DC
Our New Melbourne DC Consolidated Warehousing • The most efficient distribution • Strong investment in ‘state of the art’ • ‘Step change’ with new Melbourne Tullamarine DC • 50,000m2 warehouse • Goods to Person technology • Immediate picking growth • Substantial capacity • Manhattan WMS • Plans for
Slide 24: Goods To Person Solution
Goods To Person Solution (for illustration only) The GTP system will have the capacity to process 4,200 order lines per hour whilst ensuring short lead time orders are processed within a 15 minute SLA. Shuttle Aisles Tote Locations. DG and Promo Zone Cuby shuttles Route Divert Returns workstation de
Slide 25: H1 FY20 Results
1. H1 FY20 Results 2. H1 FY20 Result Details 3. Strategy Update 4. FY20 Trading Update / Outlook 25
Slide 26: FY20 Trading Update / Outlook
FY20 Trading Update / Outlook • Solid same store sales continued in January. Overall performance in line with expectations. • Bapcor is forecasting Full Year FY20 pro-forma NPAT to increase by middle single digit percentages compared to FY19, which will deliver a record full year result in revenue,
Slide 27: Thank You
? THANK YOU . - \ - = Now, Q&A Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions 27
Slide 28: Appendix
Appendix Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions 28
Slide 29: New Lease Accounting Standard
New Lease Accounting Standard • Bapcor adopted the new lease accounting H1 FY20 H1 FY20 AASB 16 standard (AASB 16) from 1 July 2019 on a $’M Proforma impact Proforma modified retrospective approach (comparative Exc. AASB 16 Inc. AASB 16 Revenue 702.5 - 702.5 amounts will not be restated) Other incom
Slide 30: Reconciliations
Reconciliations The following table reconciles the Statutory NPAT to the Proforma NPAT inclusive and exclusive of AASB 16: The following table reconciles the Statutory NPBT to the Proforma EBITDA inclusive and exclusive of AASB 16: Detailed Strategy 30
Slide 31: Reconciliations cont.
Reconciliations cont. The following table reconciles the earnings per share under Statutory NPAT and Proforma NPAT inclusive and exclusive of AASB 16: Detailed Strategy 31
Slide 32: Reconciliations cont.
Reconciliations cont. The following table reconciles the Statutory net debt to the Proforma net debt: Detailed Strategy The following table reconciles the Statutory EBITDA to Proforma EBITDA exclusive of AASB 16 by segment: $Ms H1 FY20 H1 FY19 Statutory Intersegment Acquisition Pro-forma Statutory I
Slide 33: Reconciliations cont.
Reconciliations cont. The following table reconciles the movements in provision for slow moving inventory: Detailed Strategy 33
Slide 34: Disclaimer
Disclaimer The material in this presentation has been prepared by Bapcor Limited (“Bapcor”) ABN 80 153 199 912 and is general background information about Bapcor’s activities current at the date of this presentation. The information is given in summary form and does not purport to be complete. Infor