Slide 1: Six Months to December 2017 Results Presentation
Six Months to December 2017 Results Presentation
Slide 2: 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
Slide 3: H1FY2018 Results
1 H1FY2018 Results 2 H1FY2018 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A 3 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 4: H1FY2018 Result Details
1 H1FY2018 Results 2 H1FY2018 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A 4 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 5: H1 FY2018 Headline Results
H1 FY2018 Headline Results REVENUE NPAT EPS Up 45% to $40.4M Up 42% to (proforma continuing Up 36% (proforma continuing $616.1M ops) ops) (continuing ops) Up 47% to Up 71% (including Up 37% $40.8M (proforma including discontinued ops) (proforma including discontinued ops) discontinued ops) Strong
Slide 6: H1 FY2018 – Operational Highlights
H1 FY2018 – Operational Highlights FY2018 a year of consolidation Bapcor NZ continues to exceed business case expectations and integration on track Existing Trade and Specialist Wholesale businesses showing strong growth Optimisation savings program progressing well Non-core divestment pro
Slide 7: H1 FY2018 – Financial Highlights
H1 FY2018 – Financial Highlights $ million H1 FY18 H1 FY17 Variance Continuing Operations Revenue 616.1 435.1 41.6% Gross Margin % 45.6% 45.0% 0.6pp EBITDA – pro-forma 70.2 49.2 42.8% EBITDA% 11.4% 11.3% 0.1pp NPAT – pro-forma 40.4 27.8 45.2% NPAT – statutory 40.4 25.3 60.0% EPS (cps) – pro-forma 14
Slide 8: Summary of Key Performance Indicators
Summary of Key Performance Indicators Revenue * EPS (cps) * 1,013.6 24.4 685.6 17.9 616.1 14.5 13.6 435.1 10.6 341.6 375.3 322.2 8.0 306.3 6.6 151.4 168.7 185.0 FY13 FY14 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 NPAT * Dividends per share Interim Total 65.8 13.0 11.0 43.6 40.4 8.7 7.0 27.8 5.0 5.5 19
Slide 9: Business Segment Results
Business Segment Results Revenue EBITDA $ million H1 FY18 H1 FY17 % Change H1 FY18 H1 FY17 % Change Trade 245.6 230.4 6.6% 34.1 31.3 8.7% Specialist Wholesale 122.0 97.3 25.4% 12.3 9.8 25.4% Retail & Service 124.1 117.8 5.4% 14.2 14.2 0.0% Group/Elims (23.8) (10.4) (6.0) (6.2) Bapcor Aust subtotal 4
Slide 10: Business Segment Contribution to Results
Business Segment Contribution to Results Total Auto Revenue Total Auto EBITDA H1 FY18 H1 FY17 H1 FY18 H1 FY17 21.8% 17.7% 26.5% 32.4% 48.2% 51.7% 55.1% 56.6% 25.7% 26.4% 18.4% 19.4% 10 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 11: Burson Trade
Burson Trade Revenue and "Same Store Sales" growth EBITDA % of Sales 465.1 419.1 13.6% 13.9% 375.3 11.8% 12.4% 341.6 10.5% 306.3 9.9% 230.4 245.6 202.9 168.7 185.0 151.4 4.6% 4.6% 4.6% 3.9% 3.4% 2.1% FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 H1 FY18 EBITDA $M Store numbers 63.3 160 163
Slide 12: Burson Trade
Burson Trade • Revenue up 6.6% and EBITDA up 8.7% $ million H1 FY18 H1 FY17 Change Revenue 245.6 230.4 6.6% • H1 FY18 same store sales growth of 3.4% EBITDA 34.1 31.3 8.7% • +3 new stores in H1 FY18, now at 163 EBITDA % 13.9% 13.6% +0.3pp • Margin growth up 0.3 compared to H1 FY17. Selling price inc
Slide 13: Specialist Wholesale
Specialist Wholesale (excluding Hellaby/Bapcor NZ businesses) $ million H1 FY18 H1 FY17 Change • Specialist Wholesale has grown significantly with the purchase of: Revenue 122.0 97.3 25.4% • Roadsafe (acquired August 2016) EBITDA 12.3 9.8 25.4% • Baxters (acquired August 2016) EBITDA % 10.1% 10.1% 0
Slide 14: Bapcor New Zealand
Bapcor New Zealand (formerly Hellaby) $ million H1 FY18 H1 FY17 Change • Significant Revenue and EBITDA growth compared to Hellaby recorded prior corresponding period NZ Trade (NZD) • Trade NZ (BNT) same store sales up 8.5% driven by strong NZ Revenue 96.0 89.6 7.2% market along with range expansion
Slide 15: Retail and Service
Retail and Service $ million H1 FY18 H1 FY17 Change • Growth in Autobarn company stores driving revenue growth of Revenue 124.1 117.8 5.4% 5.4% EBITDA 14.2 14.2 0.0% • Same store sales of 5% company owned and 1% franchise. EBITDA % 11.5% 12.1% (0.6pp) • 4 greenfield stores and 4 franchise conversion
Slide 16: Former Hellaby – Non Core Assets
Former Hellaby – Non Core Assets • Results reflect; $ million H1 FY18 • Footwear – divested end September 2017 NPAT – proforma 0.4 • Contract Resources – divested Sept/Oct 2017 NPAT – statutory 3.1 • TBS for 6 months to December 2017 • Footwear and Contract Resources were cyclical businesses with ne
Slide 17: H1FY2018 Results
1 H1FY2018 Results 2 H1FY2018 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A 17 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 18: Summary Income Statement
Summary Income Statement Revenue growth of 41.6% delivered by Pro-forma, $ million H1 FY18 H1 FY17 Change Segment Growth % of total revenue growth Continuing Operations Burson Trade 6.6% 3.5% Revenue 616.1 435.1 41.6% Retail & Service 5.4% 1.5% Gross Profit 281.0 195.7 43.6% Specialist Wholesale 2
Slide 19: Summary Cash Flows
Summary Cash Flows Strong cash conversion of 98.2% $ million H1 FY18 Working capital excluding impact of acquisitions and new EBITDA – Proforma 70.2 stores flat however as a % of sales has decreased by 2.6% to Operating cash flow before finance, transaction and tax costs 68.9 16.7% compared to J
Slide 20: Summary Balance Sheet
Summary Balance Sheet Net Debt/Cash $ million Dec 2017 Jun 2017 Net debt at December 2017 is $337.1M(1). Cash 60.1 39.8 Represents annualised leverage ratio of Trade and Other Receivables 136.2 136.1 less than 2.2X on a twelve month EBITDA basis Inventories 275.1 261.6 On target for <2.0X ne
Slide 21: Strategy Update
1 H1FY2018 Results 2 H1FY2018 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A 21 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 22: Bapcor 5 Year Strategic Targets
Bapcor 5 Year Strategic Targets Segment Contribution AUS Target AUS Target 30% 200 Trade focussed Own Stores Brands 22% “parts professionals” 163 50% TRADE supplying workshops in NZ Relocations NZ Target NZ Target Australia & New Zealand 65 & Refurb Target 30% 25 Own Stores Stores 3 Brands 22% 55 #1
Slide 23: Optimisation Programs
Optimisation Programs Optimisation savings project $M Year Low High FY18 2 3 FY19 3 4 FY20 3 5 EBIT benefit 8 11 Retained HO costs 1 1 Net benefit 7 10 Intercompany sales, direct and indirect procurement, increased sales, strategic growth, shared services, people development Have also eliminat
Slide 24: FY2018 Outlook
1 FY2017 Results 2 FY2017 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A 24 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 25: Conclusion/Outlook
Conclusion/Outlook Continued organic, geographic and other strategic growth opportunities Store / branch footprint expansion in all segments Well placed electrical & electronics componentry for evolving carparc 1st Asian store targeted to open by May 2018, and at least 5 in 2018. Continued
Slide 26: Thank You – Q&A
Thank You – Q&A 26 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 27: Appendix
APPENDIX 27 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 28: Reconciliation of Statutory to Proforma Results
Reconciliation of Statutory to Proforma Results 28 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 29: Inventory provision movement schedule
Inventory provision movement schedule * * Represents obsolete physical inventory disposed and written off against the inventory provision Note: negative balance equals credit balance 29 “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”