Slide 1: FY22 Full Year Financial Results Presentation
FY22 FULL YEAR FINANCIAL RESULTS PRESENTATION 17 AUGUST 2022
Slide 2: Agenda
AGENDA • About Bapcor • Safety • FY22 Results Overview o Group Highlights o Segment Results o Financial Summary • Workplace Culture • The Road Ahead – “Better than Before” • Outlook 2
Slide 3: About Bapcor
ABOUT BAPCOR 3
Slide 4: Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions
WE ARE ASIA PACIFIC’S LEADING PROVIDER OF VEHICLE PARTS, ACCESSORIES, EQUIPMENT, SERVICE AND SOLUTIONS Australia's leading trade focused automotive parts distributor c.$1.8B Industry leaders in specialist product FY22 REVENUE categories 1,100+ Premium parts and accessories retailer including automot
Slide 5: Revenue Diversification & Resilience
REVENUE DIVERSIFICATION & RESILIENCE • Long term stability underpinned by Bapcor’s diversified business strategy Revenue by Segment Revenue by Type 9% New Zealand 10% Discretionary – Retail 10% Non discretionary – Retail1 36% Specialist Wholesale 20% Retail 80% Non discretionary – Trade & Wholesale
Slide 6: Safety
SAFETY 6
Slide 7: Bapcor Health and Safety
BAPCOR HEALTH AND SAFETY One Bapcor Safety Culture Safety Performance - TRIFR Covid-Update • Establishment of Bapcor Zero Harm plan with a 31 30.13 • Business impact from both Covid and regular Improving, focus on high-risk activities and controls 29 influenza still ongoing but more to do • Cascaded
Slide 8: Group Highlights
GROUP HIGHLIGHTS 8
Slide 9: FY22 – Financial Highlights
FY22 – FINANCIAL HIGHLIGHTS • FY22 delivered record results, in line with guidance: o Revenue up 4.6% to $1.84B o Pro Forma NPAT up 1.2% to $131.6M o EBITDA Margin maintained at 15.8% o All segments delivered Revenue growth and increased own brand sales proportions year-on-year o Final dividend of 1
Slide 10: FY22 – Operational Highlights
FY22 – OPERATIONAL HIGHLIGHTS • Global supply chains continued to be disrupted with ordering lead times increased to unprecedented levels o Bapcor’s inventory availability is a key competitive advantage o Prudent procurement strategies applied to mitigate global supply chain risks, but leading to te
Slide 11: FY22 - Key Performance Indicators
FY22 - KEY PERFORMANCE INDICATORS REVENUE EBITDA EBIT • FY22 record Pro Forma NPAT of $131.6M in line with $1,842M $292M $206M guidance, with revenue and profit growth year-on-year 4.6% increase 4.3% increase 2.5% increase 25.9% increase 34.3% increase 42.4% increase • Increased FY22 dividend of 21.
Slide 12: Segment Results
SEGMENT RESULTS 12
Slide 13: Bapcor Trade
BAPCOR TRADE • Trade continued to grow both Revenue and EBITDA in FY22 Revenue EBITDA $686M $115M • EBITDA margin impacted by product mix and proportion of Precision sales +4.9% vs FY21 +21.2% vs FY20 +0.2% vs FY21 +19.9% vs FY20 • Trading result growth of 10.6% in 2H22 compared to 1H22, offsetting
Slide 14: Bapcor Specialist Wholesale
BAPCOR SPECIALIST WHOLESALE • Strong performance by Specialist Wholesale delivering Revenue growth of 9.8% and EBITDA EBITDA growth of 16.1%, supported by increased own brand penetration $102M Revenue +16.1% vs FY21 • Continued network expansion in Commercial Vehicle and Electrical businesses with 1
Slide 15: Bapcor Retail
BAPCOR RETAIL • Retail consolidated growth from prior years with sales up 28.3% and EBITDA up 21.5% Revenue EBITDA compared with FY20 $394M $67M +0.4% vs FY21 -0.6% vs FY21 +21.5% vs FY20 • Positive same store sales growth in 2H22 of +2.7% for Autobarn and +2.0% for Autopro +28.3% vs FY20 • EBITDA m
Slide 16: Bapcor New Zealand
BAPCOR NEW ZEALAND • New Zealand increased revenue and EBITDA despite extensive periods of Covid Revenue EBITDA disruption totalling ~125 days during 1H22 $171M $33M +0.6% vs FY21 +0.7% vs FY21 +22.1% vs FY20 • Strong performance in the Precision Equipment business with sales up 57% +9.4% vs FY20 •
Slide 17: Bapcor Asia
BAPCOR ASIA Thailand Tye Soon • Thailand has been heavily impacted by Covid throughout the • Bapcor owns a 25% equity stake in Tye Soon, a listed Singapore entity period, with reduced number of vehicles on the road o Established in 1933, Tye Soon is a leading independent • May and June saw the econo
Slide 18: Significant improvement in performance in 2H22
SIGNIFICANT IMPROVEMENT IN PERFORMANCE IN 2H22 Revenue Growth 1 1H22 2H22 FY22 • Strong revenue and EBITDA growth in 2H22 Trade 2.8% 6.8% 4.9% Specalist Wholesale Retail 7.4% -5.4% 12.1% 7.1% 9.8% 0.4% • All segments showing positive like-for-like growth in 2H22, reflecting the resilience of New Zea
Slide 19: Supply Chain – Victorian Distribution Centre
SUPPLY CHAIN – VICTORIAN DISTRIBUTION CENTRE • Supply chain capability remains core competence for Bapcor to safeguard inventory availability as a key competitive advantage and mitigate global supply chain risks • Operationalisation of Bapcor’s supply chain strategy through network of state-of-the-
Slide 20: Supply Chain - Queensland Distribution Centre
SUPPLY CHAIN - QUEENSLAND DISTRIBUTION CENTRE • Queensland Distribution Centre construction on track • Foundation slabs for the Goods to Person system, Dangerous Goods Room and the Manual Handling Equipment Room have been laid • Completed build will feature state-of-the-art Goods to People system an
Slide 21: Financial Summary
FINANCIAL SUMMARY 21
Slide 22: Summary Income Statement
SUMMARY INCOME STATEMENT $M FY22 FY21 % change • Revenue growth of 4.6%, benefitting from strength in automotive aftermarket REVENUE EBITDA 1,841.9 1,761.7 291.5 279.5 4.6% 4.3% • Delivered on guidance with FY22 Pro forma NPAT of $131.6M, with stronger Depreciation and amortisation (85.7) (78.7) 8.9
Slide 23: Summary Cash Flow
SUMMARY CASH FLOW $M EBITDA FY22 291.5 FY21 279.5 • Cash conversion impacted by ongoing investment into inventory to mitigate Operating cash flow before finance, transaction and tax costs 185.3 207.8 global supply chain disruption risks; expected to normalize in FY23 Cash conversion % 63.6% 74.3% Fi
Slide 24: Summary Balance Sheet
SUMMARY BALANCE SHEET $M 30-Jun-22 30-Jun-21 • Pro forma net debt at 30 June 2022 of $262.0M (June 2021: $164.1M), with Cash 80.2 39.6 increase mainly driven by elevated inventory levels Trade and other receivables 209.8 193.1 Inventories PP&E 538.7 106.9 447.1 100.0 • Leverage ratio of 1.2x remains
Slide 25: Dividends
DIVIDENDS Dividends (cps) • Fully franked final dividend of 11.5 cents per share 25 21.5 • Dividends declared for FY22 increased to 21.5 cents per share, up 20.0 20 7.5% year-on-year 17.5 17.0 15 13.0 15.5 11.5 • FY22 payout ratio of 55.4% 11.0 • Record date: 31 August 2022 11.0 9.5 9.5 8.7 8.5 10 7
Slide 26: Workplace Culture
WORKPLACE CULTURE 26
Slide 27: Workplace Culture – Focus on Team Members & Customers
WORKPLACE CULTURE – FOCUS ON TEAM MEMBERS & CUSTOMERS EMPOWER THE FRONT LINE • Bapcor’s employees are at the heart and soul of our business and focusing on TODAY THE FUTURE improving our culture remains a priority CORPORATE LEADERSHIP CUSTOMERS • In FY22, Bapcor has finalised a workplace culture rev
Slide 28: Workplace Culture Review – Outcomes and Action
WORKPLACE CULTURE REVIEW – OUTCOMES AND ACTION • Initiatives focused on the Bapcor’s Leadership Capability Framework in light of the review: o A relentless focus on living the Bapcor Values as a central task of Bapcor’s extended Leadership Team o Translating Bapcor’s Values, which are succinct and c
Slide 29: The Road Ahead – "Better than Before"
THE ROAD AHEAD – “BETTER THAN BEFORE” 29
Slide 30: The Opportunity Before Us
THE OPPORTUNITY A more sustainable future focused business that can: BEFORE US Deliver even more Unleash the power Drive value for for our customers of our people shareholders Maintain our absolute “Bapcor Way“ Realise efficiencies of scale focus on the customer Learning and development Collaboratin
Slide 31: Bapcor's Strategic Transformation
Phase 3: Delivery THE ROAD AHEAD – “BETTER THAN BEFORE”: BAPCOR’S STRATEGIC Phase 2: Commitment TRANSFORMATION • Better than Before launched in July • Multi-phase transformation to enable additional, sustainable growth TIMELINE: • Phase 1: Diagnostics (underway) Phase 1: Diagnostics • Phase 2: Detai
Slide 32: Better Than Before: Sustainable Transformation
THE ROAD AHEAD – “BETTER THAN BEFORE” : BAPCOR’S STRATEGIC TRANSFORMATION Better Than Before: Sustainable Transformation SIMPLICITY PROFITABILITY EFFICIENCY • Workstreams consistent with strategic intent communicated during Bapcor’s recent investor presentation • Focus on maintaining operational per
Slide 33: Outlook
OUTLOOK 33
Slide 34: Bapcor Fundamentals
BAPCOR FUNDAMENTALS • Our business operates in a resilient industry and benefits from a rational marketplace • We expect continued tailwinds from positive macroeconomic market fundamentals: o Growing population o Ageing and growing car parc o Increase in kilometres driven • Bapcor continues to stren
Slide 35: Outlook and Strategy
OUTLOOK AND STRATEGY • Strong performance in FY22 and a good start into FY23 demonstrate resilience of Bapcor’s operating model • Priority for FY23 is to improve operational efficiency and progress strategic initiatives to make Bapcor “Better than Before” • Bapcor expects a solid underlying1 trading
Slide 36: Appendix
APPENDIX 36
Slide 37: Reconciliations
RECONCILIATIONS Statutory to Pro Forma P&L FY22 Consolidated The table reconciles the pro forma results to the statutory results: $M Statutory DC Consolidation 3 Tye Soon4 Tax5 Pro-Forma 1. These tables are subject to rounding Revenue 1,841.9 1,841.9 2. NPAT attributable to members of Bapcor Limited
Slide 38: Reconciliations
RECONCILIATIONS The following tables reconcile statutory to pro forma net debt, statutory EBITDA to pre-AASB16 EBITDA and the Net Leverage calculation Consolidated Consolidated Consolidated $Ms 30-Jun-22 30-Jun-21 $M FY22 FY21 $M FY22 FY21 Cash and cash equivalents 80.2 39.6 Statutory EBITDA 286.2 2
Slide 39: Debt Facilities and Maturity Profile
DEBT FACILITIES AND MATURITY PROFILE • Debt facilities and maturity profile provides Bapcor with financial flexibility to pursue acquisition opportunities and invest in growth $262.0M $136.1M 2.9 years 1.2x Pro forma net debt Undrawn committed facilities Average remaining tenor Net leverage ratio Fa
Slide 40: Bapcor Values
BAPCOR VALUES • Our Values are at the center of everything we do and they will continue be embedded into our processes 40
Slide 41: We Are Responsible and Committed
WE ARE RESPONSIBLE AND COMMITTED Positively impact Environmental Ethical supply Good governance – supporting our community sustainability chain/procurement and developing our people > Engage stakeholders and support the > Aspire to be net carbon neutral > Ethical sourcing > Uphold our values and cod
Slide 42: 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 43: Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions
Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions