Slide 1: FY2017 Results Presentation
FY2017 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: Agenda
1 FY2017 Results 2 FY2017 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 3
Slide 4: FY2017 Results
1 FY2017 Results 2 FY2017 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 4
Slide 5: FY2017 Headline Results
FY2017 Headline Results REVENUE NPAT EPS Up 50.9% to $65.8M Up 36% Up 48% to (proforma continuing (proforma continuing $1,014M ops) ops) (continuing ops) Up 64.2% to Up 77% (including Up 48% $71.5M (proforma including discontinued ops) (proforma including discontinued ops) discontinued ops) Excell
Slide 6: FY2017 – Operational Highlights
FY2017 – Operational Highlights Another transformational year Improved performance in every business segment - sales, margin & earnings 23 new stores across Australia 15 Burson Trade 8 Autobarn Metcash Auto optimisation program delivered at top end of target Successful acquisition of H
Slide 7: FY2017 – Financial Highlights
FY2017 – Financial Highlights $ million FY2016 FY2017 Variance Continuing Operations Revenue 685.6 1,013.6 47.8% Gross Margin % 44.2% 45.7% 1.5pp EBITDA – pro-forma 77.0 117.4 52.4% EBITDA% 11.2% 11.6% 0.4pp NPAT – pro-forma 43.6 65.8 50.9% NPAT – statutory 43.6 53.7 23.3% EPS (cps) – pro-forma 17.8
Slide 8: FY2017 – Actual Results versus Bapcor Guidance
FY2017 – Actual Results versus Bapcor Guidance NPAT Guidance Actual $ million Low High proforma NPAT* Bapcor excluding Hellaby 57.0 59.0 59.5 Hellaby 8.0 12.0 12.0 Total 65.0 71.0 71.5 * Proforma NPAT includes discontinued operations and removal of one off costs related to the acquisition of Hellaby
Slide 9: Summary of Key Performance Indicators
Summary of Key Performance Indicators Revenue * EBITDA * NPAT * 65.8 1,013.6 117.4 685.6 43.6 77.0 341.6 375.3 41.5 19.3 23.1 306.3 30.2 36.0 16.0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 vs *FY2016 Based on continuing operations
Slide 10: Summary of Key Performance Indicators
Summary of Key Performance Indicators EPS (cps) * Dividends per share Share price Interim Final 5.92 24.4 5.52 5.49 4.20 17.9 7.5 3.40 13.6 6.0 2.50 4.7 1.82 5.0 5.5 4.0 APR14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 listing * Based on continuing operations
Slide 11: Burson Trade
Burson Trade Revenue and "Same Store" growth Revenue up 11.0% 465.1 375.3 419.1 Same store sales growth 4.6% 341.6 306.3 284.3 Positive growth in every state/region 4.6% 4.6% 4.6% 3.9% Customer loyalty program “Alliance” 1.4% 2.1% has made good progress FY2012 FY2013 FY2014 FY2015 FY2016 FY2
Slide 12: Burson Trade
Burson Trade EBITDA $M 63.3 51.8 EBITDA up 22.2% 44.3 30.3 35.9 Due to increased sales and 22.7 margin improvement FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 EBITDA % of Sales 13.6% 11.8% 12.4% Increased 1.2pp 10.5% 9.9% 8.0% Optimisation benefits achieved FY2012 FY2013 FY2014 FY2015 FY2016 F
Slide 13: Retail and Service
Retail and Service Revenue $M 221.0 Revenue up 28.3% - includes one 172.3 additional month from former Metcash Auto FY2016 FY2017 EBITDA $M 28.2 EBITDA up 30.3% 21.6 Additional 1 month in FY17 vs. FY16 from former Metcash Auto EBITDA % sales increased 0.2pp FY2016 FY2017 Increased revenue
Slide 14: Retail and Service – business units
Retail and Service – business units Same store sales up 2% National campaigns up 10% Click and collect up 45% 122 Single largest sales day in history June 2017 114 New loyalty program 122 stores, up 8 31 company stores +16 (added 9 greenfield and 7 acquisitions) 25% stores company ow
Slide 15: Retail & Service – Number of Stores
Retail & Service – Number of Stores 2016 2017 400 385 124 125 18 14* Service 103 Autopro 82 Sprint 4 Autobarn 2 33 34 5 5 91 99 31 15 Franchise Stores: 360 Franchise Stores: 331 Company Owned Stores: 40 Company Owned Stores: 54* * Includes 12 company owned stores in transition “Australasia’s leading
Slide 16: Specialist Wholesale (excluding Hellaby)
Specialist Wholesale (excluding Hellaby) Revenue up 105.7% Revenue $M 212.7 Specialist Wholesale has grown significantly with the purchase of; Bearing Wholesalers (acquired March 2016) 103.4 Roadsafe (acquired August 2016) Baxters (acquired August 2016) MTQ (acquired November 2016) FY201
Slide 17: Hellaby Automotive – 6 months from Jan to June 2017
Hellaby Automotive – 6 months from Jan to June 2017 $ millions Revenue EBITDA Trade 61.8 7.9 Specialist Wholesale 84.9 7.1 Total 146.7 15.1 Revenue +16.0% on H2 FY2016, and +16.5% on FY2016 EBITDA +27.6% on H2 FY2016, and +16.7% on FY2016 Quality asset with further upside Specialist Wholesale
Slide 18: Hellaby – Non Core Assets – 6 months from Jan to June 2017
Hellaby – Non Core Assets – 6 months from Jan to June 2017 $ millions Revenue Proforma EBITDA Resource Services 131.9 11.0 Footwear 64.7 5.8 Total 196.6 16.8 Good performance in Footwear and TBS component of Resource Services Divestment program underway Good return on assets “Australasia’s lea
Slide 19: FY2017 Result Details
1 FY2017 Results 2 FY2017 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 19
Slide 20: Summary Income Statement
Summary Income Statement Revenue growth of 47.8% delivered by Segment Growth % of total revenue growth Pro-forma, $ million FY2017 FY2016 Change Burson Trade 11.0% 14.0% Continuing Operations Retail & Service 28.3% 14.9% Revenue 1,013.6 685.6 47.8% Specialist Wholesale 105.7% 33.3% Gross Profit 46
Slide 21: Business Segment Contribution to Results
Business Segment Contribution to Results $ millions Revenue EBITDA EBITDA % of Revenue FY17 FY16 % Change FY17 FY16 % Change FY17 FY16 Change 1. Included in EBITDA is elimination of Continuing operations profit in intercompany stock of Trade 465.1 419.1 11.0% 63.3 51.8 22.2% 13.6% 12.4% 1.2 $3.1M an
Slide 22: Summary Cash Flows
Summary Cash Flows Strong cash conversion of 102.5% $ million FY2017 Working capital excluding impact of acquisitions and new EBITDA – Proforma 117.4 stores favourable due to improved payables management Change in working capital (8.5) Payments for new store inventory 11.5 Working capital leve
Slide 23: Summary Balance Sheet
Summary Balance SheetShee $ million Jun 2017 Jun 2016 Net Debt/Cash Cash 39.8 22.4 Net debt at June 2017 is $381.9M(1). Trade and Other Receivables 136.1 87.9 Represents annualised leverage ratio of less than 2.5X on an annualised EBITDA Inventories 261.6 163.0 basis PP&E 49.8 36.2 New $500M
Slide 24: Strategy Update
1 FY2017 Results 2 FY2017 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 24
Slide 25: Aftermarket Supply Chain
Aftermarket Supply Chain Bapcor businesses participate Consumer Service Trade / Retail Resellers Wholesale Manufacturers “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 25
Slide 26: Bapcor 5 Year Strategic Targets
Bapcor 5 Year Strategic Targets “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 26
Slide 27: Frequently Asked Questions
Frequently Asked Questions On line retailing (including Amazon) Amazon likely to focus on electronics, health & beauty, kitchen & home, toys, in initial stages If and when Amazon introduce auto parts, likely to be on consumer products that do not require professional fitment or advice Bapcor’s
Slide 28: High Risk Categories to Internet Trading
High Risk Categories to Internet Trading Indicative – Amazon Internet Ebay Australia Sales to USA Sales Online 1 Kindle Edition 9% 1 Phones & Accessories 57% 2 Health and Beauty 6% 2 Toys, Hobbies 10% 3 Electronics 3% 3 Computers/Tablets & Networking 7% 4 Kitchen & Home 3% 4 Vehicle Parts & Accessor
Slide 29: Frequently Asked Questions
Frequently Asked Questions Electric Cars Hybrid & electric cars are 2.2% of the Australasian car parc Last quarter sales were 1% hybrid & electric Bapcor will evolve and adapt to the car parc - as it has historically as cars have changed Bapcor well placed to supply electronic components and
Slide 30: What will be the impact of electric cars?
What will be the impact of electric cars? Bapcor’s Australian Car Parc Forecast Model. 60 100% Australian Car Parc No. of Cars (Millions) 90% 50 Electric vehicles reach 80% 50% of Car Parc – i.e. 70% 40 2041 60% 30 50% 40% 20 30% 20% 10 10% - 0% 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037
Slide 31: Optimisation Program – following Hellaby Acquisition
Optimisation Program – following Hellaby Acquisition As announced on 26 July 17 $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 Have also eliminated $5M of Hellaby head Office costs Intercompany sales, direct and indirect procurement, increase
Slide 32: Warehouse Evolution Project
Warehouse Evolution Project Consultants have completed 12 month review 5 to 7 year program Invest in technology Circa $30M to $40M investment in capital and project expenses. Will generate annual return of $10M to $15M EBIT by year 5. Priority Transport contracts and warehouse management
Slide 33: FY2018 Outlook
1 FY2017 Results 2 FY2017 Result Details 3 Strategy Update 4 FY2018 Outlook 5 Q&A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 33
Slide 34: Outlook
Outlook FY2018 will continue to deliver business and profit growth Full year impact of Hellaby Auto and other FY17 acquisitions Continued growth in Trade and Retail Store footprint expansion in all segments Benefits of vertical integration and optimisation program FY2018 forecast NPAT fr
Slide 35: Thank You – Q&A
Thank You – Q&A Insert community work collage “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 35
Slide 36: Appendix
APPENDIX “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 36
Slide 37: Proforma P&L Reconciliation
Proforma P&L Reconciliation Consolidated 2017 2017 Continuing Discontinued 2017 $’M Notes Operations Operations Total 2016 Statutory NPAT 53.7 10.1 63.8 43.6 Costs associated with the acquisition of 15.3 - 15.3 - Hellaby 1 Interest adjustment 2 (0.7) - (0.7) - Depreciation and amortisation adjustmen
Slide 38: FY2017 P&L Additional Information
FY2017 P&L Additional Information The following table presents the proforma profit and loss statement by consolidating the discontinued operations into each major profit and loss line item: Discontinued Continuing $M Bapcor excluding Hellaby Hellaby Auto/HO Operations Operations Total Bapcor Total B
Slide 39: FY2017 Cash Flow Reconciliation
FY2017 Cash Flow Reconciliation The following reconciles the statutory net cash from operating activities per Note 39 of the 30 June 2017 statutory accounts to the cash flows from operating activities before finance, transaction and tax costs: $M Net cash from operating activities (per Note 39) 61.1