Bapcor Ltd · ASX:BAP
Bapcor — Burson Group — H1 FY2016 Earnings Presentation
30 slides from Bapcor's earnings presentation, 2016
Slide 1: H1 FY2016 Results Presentation
H1 FY2016 Results Presentation Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by Burson Group Limited (“Burson”) ABN 80 153 199 912 and is general background information about Burson’s activities current at the date of this presentation. The information is given in summary form and does not purport to be complete.
Slide 3: Agenda
Agenda 1 H1 FY2016 Results Highlights 2 H1 FY2016 Result Details 3 Strategy 4 Outlook 3 Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 4: H1 FY2016 Result Highlights
1 H1 FY2016 Result Highlights 2 H1 FY2016 Result Details 3 Strategy and Outlook 4 Outlook Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 5: Strong performance in all areas
FY2015 Result Highlights $ million H1 FY2016 H1 FY2015 Variance Revenue 322.2 185.0 74.1% Gross Margin %(1) 44.0% 43.2% 0.8 EBITDA 34.5 19.8 74.1% Strong performance NPAT 19.3 10.9 77.9% in all areas EPS(2) (cps) 7.97 6.41 24.3% Interim dividend (cps) 5.0 4.0 25.0% Strong result underpinned by con
Slide 6: Business Contribution to Results
Business Contribution to Results Revenue EBITDA H1 H1 H1 H1 Change Change FY2016 FY2015 FY2016 FY2015 Burson Trade 202.9 185.0 9.7% 23.4 21.2 10.3% ANA* 120.6 - - 13.9 - - - Group (1.3) - - (2.8) (1.4) Total 322.2 185.0 74.1% 34.5 19.8 74.1% Burson Trade continues consistent growth rate in sales a
Slide 7: Burson Trade
Burson Trade 136 stores at the end December 2015, up 6 since June 2015. Now operating 6 stores in WA. Total revenue up 9.7% Same store sales growth of 4.5% Supplier price increases successfully passed through to market Gross Margin 45.0%, up 0.8% on H2 FY2015. General price increas
Slide 8: Burson Trade - Summary of Key Performance Indicators
Burson Trade - Summary of Key Performance Indicators Store Numbers Revenue and “Same Store” growth 130 136 116 100 105 341.6 375.3 284.3 306.3 4.6% 4.5% 3.9% 2.1% 1.4% FY2012 FY2013 FY2014 FY2015 H1FY2016 Revenue ($ million) Same Store growth % FY2012 FY2013 FY2014 FY2015 H1FY2016 Gross Profit Margi
Slide 9: Aftermarket Network Australia (ANA)
Aftermarket Network Australia (ANA) ANA (formally Metcash Automotive) purchased 31 July 2015. Sales for 5 months ending 31 December 2015 are above expectations Autobarn YTD same store sales up 5.0%. Store numbers relatively flat as focus on strategy definition, internal processes (in
Slide 10: H1 FY2016 Result Details
1 H1 FY2016 Result Highlights 2 H2 FY2016 Result Details 3 Strategy 4 Outlook Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 11: Summary Income Statement
Summary Income Statement Revenue growth of 74.1% delivered by ANA acquisition contributing 64.4% Pro forma, $ million H1 FY2016 H1 FY2015 Change Burson Trade up 9.7% Revenue 322.2 185.0 74.1% Same Store sales growth Burson Trade 4.5% Gross Profit 141.8 79.9 77.5% Autobarn 5.0% Margin (%)
Slide 12: Summary Cash Flows
Summary Cash Flows H1 Pro forma, $ million FY2016 Working capital Cash flows excluding ANA associated cash flows Working capital movement reflects increase in sales EBITDA 34.5 Overall working capital % increase from 11.4% to 15.5% due Change in working capital (4.7) nature of ANA’s franchise
Slide 13: Summary Balance Sheet
Summary Balance Sheet ANA acquisition Balance sheet reflects impact of ANA acquisition Fair value exercise undertaken with third party $ million Dec 2015 June 2015 valuation of intangibles Cash 27.9 107.9 $223M intangibles relate to the ANA acquisition Trade and Other Receivables 78.6 33.4 I
Slide 14: Strategy
1 H1 FY2015 Result Highlights 2 H1 FY2015 Result Details 3 Strategy 4 Outlook Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 15: Burson Group Strategy
BURSON GROUP STRATEGY 5 year vision Specialist, Vehicle Parts and Supporting the Excelling in Knowledgeable Accessories Industry Customer Service Staff Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services 15 Australasia’s Leading Provider of Aftermarket Parts, Accessories an
Slide 16: Key Highlights of the new Burson Group
Key Highlights of the new Burson Group The leading Australian owned automotive aftermarket business which spans the supply chain Market Leader The leading Australian supplier of automotive aftermarket parts, accessories and service Group distribution platform has significant scale and competitiv
Slide 17: Strategic Rationale of Group Structure
Strategic Rationale of Group Structure Burson Group’s growth strategy covers the core supply chain areas. Parts and “Trade” Parts Parts Manufacturer Parts Wholesaler Components End Vehicle Owner Installer Distributor Original Equipment Vehicle Manufacturer Manufacturer Dealer Workshops Specialist Do
Slide 18: Group Business Structure
Group Business Structure #1 or #2 Industry Category specialists in parts programs SPECIALIST Brake Engine + (Wholesale) Target Suspension Bearings + $200M Turnover Cooling Gaskets + Trade focussed “parts 25% AUS Target TRADE professionals” supplying Home 200 workshops brands Stores 35% AUS Target AU
Slide 19: Group Support Structure
Group Support Structure World Class, efficient and effective, support functions Human Resources Supply Chain Business Systems (IT) Financial Services Business Support 19 Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 20: Core Business Channels
CORE BUSINESS CHANNELS 20 Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 21: Specialist Wholesale
Specialist Wholesale • Category expertise – being the most knowledgeable in the category. Target • #1 or #2 in the category. $200M • Sources and imports own branded, extensive range of Turnover products, supported by locally sourced premium brands. • Predominately “own brands” Current • Supply to th
Slide 22: Trade - Burson Auto Parts
Trade - Burson Auto Parts Australia’s leading trade focused automotive aftermarket parts distributor Target 200 • Core focus on distribution of auto parts to independent and Stores chain mechanic workshops throughout Australia for routine servicing of vehicles, and do-it-yourself vehicle owners; by
Slide 23: Retail Channel
Retail Channel 23 Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 24: Retail - Autobarn
Retail - Autobarn Australia’s premium full service retail accessories store AUS Target 200 • Every store has fitment capabilities to make shopping and Stores installing parts easier • Knowledgeable and experienced staff in every store Current differentiating it from the competition 112 • Focussed on
Slide 25: Retail - Opposite Lock
Retail - Opposite Lock Australia’s widest range of 4WD accessories AUS Target 120 • Specialist 4x4 automotive part and accessory stores Stores & • Extensive private label bar work program, designed and Stockists engineered by local team. Range includes: bullbars, sidesteps, Current side rails and re
Slide 26: Independents
Independents Servicing the broader independent sector Currently Supplying • Core focus on; 200 Stores • Full merchandise range supply to independents and dealers • Retail and Trade mix • Catalogue and advertising support • No frills, low cost structure, pay for service 26 Australasia’s Leading Provi
Slide 27: Service
Service Experts at scheduled car servicing at affordable prices • Core focus on; • Routine service for vehicles, including logbook service, warranty repairs • Breakdown repairs • Currently 140 stores – predominately franchised. • Aus has in excess of 30,000 workshops • Midas has strategic partnershi
Slide 28: Outlook
1 H1 FY2015 Result Highlights 2 H1 FY2015 Result Details 3 Strategy 4 Outlook Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION
Slide 29: Outlook
Outlook Burson Trade to maintain steady growth. H2 FY2016 will include additional new stores and the benefit of the improved margins offset by competitive pricing ANA to continue to track in line with expectations during H2 FY2016 Benefit of optimization programs to begin flowing in FY2017
Slide 30: Thank You
Thank You 30 Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services BURSON H1 FY2016 RESULTS PRESENTATION