Slide 1: 1H24 Results Presentation
BAPCOR LIMITED (BAP.ASX) 1H24 RESULTS PRESENTATION 23 February 2024
Slide 2: Acknowledgement of country
Acknowledgement of country Bapcor would like to acknowledge the Traditional Custodians of country throughout Australia. We pay our respect to elders past and present. We recognise the continued connection of all First Nations people with country across Australia, in particular, and on all the land w
Slide 3: Agenda
Agenda Content 1. Market Update & 1H24 Highlights 2. 1H24 Financial Summary 3. Summary & Outlook 4. Questions & Answers Appendices 1. Segment Trading Summaries 2. Key Financial Reconciliations 3
Slide 4: Market Update and 1H24 Highlights
Market Update and 1H24 Highlights Mark Bernhard Interim Managing Director and CEO 4
Slide 5: We are Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions
We are Asia Pacific’s leading provider of vehicle parts, accessories, >$2.0B c. 1,000 5,500+ FY23 REVENUE LOCATIONS IN TEAM MEMBERS equipment, service and AUSTRALIA, NEW ZEALAND AND solutions THAILAND Australia's leading trade Industry leaders in Premium parts and Services New Zealand’s focused auto
Slide 6: 1H24 Group Highlights
1H24 Group Highlights Performance1 in line with Trading Update on 29 January 2024 Solid performance in Trade & Ongoing focus on capital returns, Better Than Before Wholesale, but offset by tougher efficiency & growth 1H24 progressed as planned trading conditions in Retail & higher • Net Debt and Inv
Slide 7: 1H24 Group Financials
1H24 Group Financials Key Performance Indicators1 Revenue EBITDA Margins NPAT Dividend $1,017.5M 14.1% $54.2M 9.5cps +1.7% vs 1H23 Improvement vs. In line with 59.5% payout ratio, Record half-year 1H23 in all Trade & Trading Update; at upper end of revenue Wholesale segments $62.0M in 1H23 dividend
Slide 8: Segment Highlights and Financials
Segment Highlights and Financials Key Performance Indicators1 Trade New Zealand Specialist Wholesale Retail Revenue Revenue Revenue Revenue $383M $89M $391M $214M +2.3% vs 1H23 +3.3% vs 1H23 +3.4% vs 1H23 (2.7%) vs 1H23 EBITDA & margin EBITDA & margin EBITDA & margin EBITDA & margin $62M / 16.3% $14
Slide 9: Retail earnings impacted by lower discretionary sales
Retail earnings impacted by lower discretionary sales Majority of Bapcor’s revenue continues to be generated by non- ….. but Retail’s profit impacted by shift in volumes & product mix: discretionary categories ….. • Gross profit from non-discretionary sales resilient • 90.4% from non-discretionary c
Slide 10: 1H24 Financial Summary
1H24 Financial Summary Stefan Camphausen Chief Financial Officer 10
Slide 11: Income Statement
Income Statement $M1 1H24 1H23 % change Revenue 1,017.5 1.000.8 1.7% › $1.02B record half-year revenue and $54.2M Pro Forma NPAT Cost of Goods Sold (COGS) (545.2) (534.5) 2.0% Gross Margin Cost of Doing Business (CODB) 472.3 (328.5) 466.3 (320.0) 1.3% 2.6% › Resilient gross margin across all segment
Slide 12: Cash Flow
Cash Flow $M1 1H24 1H23 › Operating Cash Flow in 1H24 of $93.6M, on similar level EBITDA 143.8 146.3 to 1H23 Operating Cash Flow 93.6 99.2 Cash conversion % 65.1% 67.8% › Cash conversion in 1H24 in line with previous years; Interest (9.3) (5.9) impacted by first half inventory build-up while debtor
Slide 13: Balance Sheet
Balance Sheet $M 31 Dec 23 31 Dec 22 30 Jun 23 › Pro-Forma net debt at 31 December 2023 of $332.7M Cash 88.0 41.9 78.6 and leverage ratio of 1.51x, both well within debt Trade and other receivables 223.4 227.8 239.6 capacity Inventories 563.6 561.7 519.7 PP&E Right-of-use assets 128.3 281.2 120.1 24
Slide 14: Net Debt and Inventory
Net Debt and Inventory Ongoing focus on capital efficiency reflected in stabilized Net Debt and Inventory positions • Net Debt and Inventory stabilized in last twelve months (LTM), compared to deterioration in prior comparable periods • Inventory and debt usually increases between FY and HY Net Debt
Slide 15: Dividends
Dividends Dividends (cents per share) › Interim dividend of 9.5 cents per share, fully franked 21.5 22.0 › 1H24 payout ratio of 59.5% of Pro Forma NPAT, at upper end of 20.0 dividend policy 17.5 15.5 17.0 11.5 › Record date: 8 March 2024 11.5 13.0 9.5 11.0 › Payment date: 28 March 2024 11.0 9.5 8.5
Slide 16: Summary and Outlook
Summary and Outlook Mark Bernhard Interim Managing Director and CEO 16
Slide 17: Better than Before Update
Better than Before Update Better than Before: P&L Context: • Transformation program to deliver longer-term growth and 1H24 1H23 shareholder value $M Actuals Actuals • Benefits targeted to be generated ~40% from Commercial Commercial Levers 1.6 0.0 levers, ~40% from Procurement / COGS levers and ~20%
Slide 18: Summary & Outlook
Summary & Outlook Solid performance in Trade & Given macroeconomic challenges Wholesale, but offset by tougher & cost of doing business inflation, trading conditions in Retail & Bapcor will implement additional higher finance costs profit saving initiatives in 2H24 Looking forward and subject to gen
Slide 19: Thank you & Questions and Answers
Thank you & Questions and Answers 19
Slide 20: Segment Trading Summaries
Segment Trading Summaries 20
Slide 21: Segment Summary
Segment Summary THAILAND 6 Asia Pacific Footprint 6 NT 12 Revenue by segment 4 3 5 QLD 177 8% 50 44 83 WA 20% 77 36% 17 20 40 Trade SA ACT Specialist Wholesale 7 77 3 1 3 Retail 17 10 50 NSW NZ 180 VIC 58 46 76 Trade 196 36% 63 43 90 Specialist Wholesale NZ Retail TAS 216 19 Other (Licensee) 77 13 1
Slide 22: Trade & Wholesale segments: Trade
Trade Australia’s leading distributor of vehicle parts and equipment solutions for the Trade Revenue EBITDA › Solid revenue growth and market share driven by increases in resilient general part volumes and critical $383M $62M services performed in workshops “Do It For Me” (DIFM) Market: Trade & Whol
Slide 23: Trade & Wholesale segments: New Zealand
New Zealand Integrated trade and wholesale group providing leading parts and equipment solutions across New Zealand Revenue EBITDA › Positive 1H24 revenue growth driven by improved same store sales, turning around 1H23 revenue decline $89M $14M “Do It For Me” (DIFM) Market: Trade & Wholesale segment
Slide 24: Trade & Wholesale segments: Specialist Wholesale
Specialist Wholesale Truck and specialist wholesale market leader, aggregator and importer for One Bapcor EBITDA › Specialist Networks: continued strong growth in revenue and EBITDA, particularly in Truck market, $53M driven by solid same store growth and network “Do It For Me” (DIFM) Market: Trade
Slide 25: Retail segment
Retail Full-offer retailer and service centre providing best-in-class consumer shopping and fitment experiences Revenue EBITDA › Revenue impacted by macroeconomic headwinds leading to lower consumer $214M $31M confidence, foot traffic and discretionary “Do It Yourself” (DIY Market): -2.7% vs 1H23 -1
Slide 26: Supply Chain
Supply Chain Distribution Centre Queensland (DCQ): › Successful integration of Trade business into DCQ in 1H24 with performance on targeted levels since inception › Integration of Retail business on track and scheduled for 2H24 › Annualised EBITDA benefits of $4M-$6M (once all 7 existing warehouse a
Slide 27: Key Financial Reconciliations
Key Financial Reconciliations 27
Slide 28: Statutory to Pro Forma reconciliation
Statutory to Pro Forma reconciliation 1H 24 Consolidated › The table reconciles the statutory results to the pro- forma results $M Statutory DC Consolidation Restructuring Transformation Tax Pro-Forma Revenue 1,017.5 1,017.5 EBITDA 133.5 3.6 1.8 5.0 143.8 › These tables are subject to rounding D&A (
Slide 29: Leverage and segment reconciliation
Leverage and segment reconciliation › The following tables reconcile statutory to pro forma net debt, statutory EBITDA to pre-AASB16 EBITDA and the Net Leverage calculation Consolidated Consolidated Consolidated $M 31 Dec 23 30 Jun 23 $M 1H 24 1H 23 $M 1H 24 1H 23 Cash and cash equivalents 88.0 78.6
Slide 30: ROIC reconciliation
ROIC reconciliation › The following tables reconcile P&L and balance sheet to the Return on Invested Capital calculation Consolidated $M 1H 24 1H 23 Proforma EBIT (LTM) 199.8 210.1 Proforma EBIT after tax LTM (A) 139.9 147.1 Proforma Net Debt (332.7) (329.1) Equity (1,129.5) (1,113.3) Total (B) (1,4
Slide 31: Debt facilities and maturity profile
Debt facilities and maturity profile > Debt facilities and maturity profile provide Bapcor with financial flexibility to implement BTB, pursue acquisition opportunities and invest in growth $332.7M >$170.0M ~2.8 years 1.51x PRO FORMA NET DEBT UNDRAWN COMMITTED AVERAGE REMAINING NET LEVERAGE RATIO FA
Slide 32: Bapcor Values
WE DO THE RIGHT THING We are open, honest and respectful. We do what we say and say what we do. WE ARE IN IT TOGETHER We’re all part of the Bapcor family. We support each other, include everyone and have fun along the way. WE GIVE A DAMN We care about what we do and are proud of how we do it. We are
Slide 33: 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 34: 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