Slide 1: FY23 Results Presentation
BAPCOR LIMITED (BAP.ASX) FY23 RESULTS PRESENTATION 16 August 2023
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 PERFORM 1 FY23 Group Highlights 2 Segment Results 3 FY23 Financial Summary TRANSFORM 4 Better Than Before 5 Summary & Outlook 6 Questions & Answers 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, >$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 5: Our journey so far…
Our journey so far… Burson founded by Burson Group Burson Group Expansion of Burson Garry Johnson Better than Limited becomes Bapcor into 50th and Ron Before Lists on the ASX Bapcor Limited Asia anniversary Burgoine in Victoria, Australia 1971 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Acquis
Slide 6: The automotive aftermarkets remain strong, resilient and continue to offer attractive growth opportunities
The automotive aftermarkets remain strong, resilient and continue to offer attractive growth opportunities Average Australian Vehicle Age 1, 2, 4 Australian Number of Vehicles 1, 2, 3 AUS CAR PARC (Years) (‘M) 12 23 > No. of vehicles – 21m 22.5 11.0 11.1 > New cars sold p.a. – 1.1m 11 22 > Ave. age
Slide 7: FY23 Group Highlights
PERFORM FY23 Group Highlights Noel Meehan Managing Director and CEO 7
Slide 8: FY23 Group Highlights
FY23 Group Highlights Robust performance in line with guidance PERFORM TRANSFORM Resilient performance with all Network and supply chain Board renewal progressed: Continued investment in key targets achieved customer offering improved • Brad Soller capability and culture • $2.0B record revenue, up 9
Slide 9: FY23 Financial Highlights
FY23 Financial Highlights Key Performance Indicators1 Revenue EBITDA NPAT Dividend Payout Ratio Margins $2,021.1M 14.8% $125.3M 22cps 59.6% 9.7% vs FY22 60bps improvement In line with 2.3% vs FY22, and FY22 payout ratio Record revenue in 2H23 in all Trade & Guidance; 14.2% CAGR since at upper end of
Slide 10: 5 year history of performance
5 year history of performance Revenue $m Gross Margin Gross Margin % $m % 2,500 15.9% CAGR 1 1000 15.8% CAGR 1 55.0 stable 2,000 800 50.0 1,500 600 45.0 1,000 400 40.0 500 200 0 0 35.0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 $m EBITDA EBIT $m Pro Forma NPAT $m 350
Slide 11: Improving our team members experience
Improving our team members experience SAFETY PERFORMANCE - TRIFR1 Making things easier Keeping our team members • Introduction of new People & safe 30.13 Still more to do Culture operating model • 32% TRIFR reduction in FY23 • Creation of seamless and • 29% LTIFR reduction in FY23 to consistent team
Slide 12: Segment Results
PERFORM Segment Results Executive General Managers 12
Slide 13: Segment Overview
Segment Overview Robust performance on Group level ….. ….. enabled by strong performance across all areas of business: • Record revenue of $2.0B benefitting from vertically integrated and • Revenue growth in all segments year-on-year diversified business structure Margin improvement Revenue by segme
Slide 14: Segment Overview
Segment Overview Asia Pacific Footprint THAILAND 6 Revenue by type 6 NT 10 10% 4 2 4 QLD 10% 178 50 46 82 WA 76 17 18 41 ACT SA 8 77 3 2 3 17 11 49 NSW 181 80% VIC 58 44 79 Trade 195 Non discretionary – Trade & Wholesale 63 44 88 Specialist Wholesale Non discretionary – Retail NZ Retail TAS 216 Disc
Slide 15: Trade
Trade Australia’s leading distributor of vehicle parts and equipment solutions for the Trade Revenue EBITDA › Strong top-line double digit growth with record revenues driven by same store sales growth and $763M $124M customer relationship initiatives +11.3% vs FY22 +7.9% vs FY22 › Robust EBITDA marg
Slide 16: Specialist Wholesale
Specialist Wholesale Truck and specialist wholesale market leader; and aggregator and importer for One Bapcor EBITDA › Record revenue with strong growth particularly in Truck market, driven by strong same store growth in $103M regional markets and mining & agricultural sectors, Greenfield Integrated
Slide 17: Retail
Retail Full-offer retailer and service centre providing best-in-class omni-channel customer experiences Revenue EBITDA › Record revenue with solid same store sales, notwithstanding 2H23 impacted by macro $426M $68M headwinds in the Retail market +8.3% vs FY22 +1.7% vs FY22 › 2H23 EBITDA margin on si
Slide 18: New Zealand
New Zealand Integrated trade and wholesale group providing leading parts and equipment solutions across New Zealand Revenue EBITDA › Revenue and same store sales solid, with stabilisation New store: Cromwell and recovery in 2H23 $176M $30M +3.0% vs FY22 -8.9% vs FY22 › 2H23 EBITDA margin improved to
Slide 19: Supply Chain
Supply Chain Bapcor’s customer-centric, sustainable and agile enabler for continued growth and operational excellence Network: › Emergency order fulfilment rates averaging >98% through FY23 › Considerable improvement in supply rates supporting FY23 inventory turn improvements › Commenced centralised
Slide 20: FY23 Financial Summary
PERFORM FY23 Financial Summary Stefan Camphausen CFO 20
Slide 21: Income Statement
Income Statement $M FY23 FY22 % change › Strong revenue growth of 9.7%, across all segments, Revenue 2,021.1 1,841.9 9.7% demonstrating resilience of the diversified business Cost of Goods Solds (COGS) 1,077.3 982.5 9.6% model Gross Margin 943.8 859.4 9.8% Cost of Doing Business (CODB) EBITDA (645.2
Slide 22: Cash Flow
Cash Flow $M FY23 FY22 › Operating Cash Flow increased to $320.7M, up 73% EBITDA 298.6 291.5 compared to previous year Operating Cash Flow 320.7 185.3 Cash conversion % 107.4% 63.6% › Significantly improved full year cash conversion of Interest (14.4) (7.4) 107.4%, particularly driven by improved in
Slide 23: Balance Sheet
Balance Sheet $M 30 Jun-23 30-Jun-22 › Pro-Forma net debt at 30 June 2023 of $251.7M CCCCCC and leverage ratio of 1.12x both improved year- Cash 78.6 80.2 Trade and other receivables 239.6 209.8 on-year and well within debt capacity Inventories 519.7 538.7 PP&E 115.2 106.9 › Sound financial position
Slide 24: Inventory
Inventory Solid improvement in inventory position in line with FY23 targets • Inventory position improved in 2H23 driven by accelerating inventory turns in 2H23 • Like-for-like “tens of millions” reduction of $47.3M in-line with guidance FY23 Inventory Movement Inventory Efficiency (Inventory / Reve
Slide 25: Dividends
Dividends Dividends (cents per share) › Record full year dividend of 22.0 cents per share (fully franked) 21.5 22.0 › Full year payout ratio of 59.6%, at upper end of dividend policy 20.0 17.0 17.5 › FY23 total dividend includes final dividend of 11.5 cents per share 15.5 (fully franked) 11.5 11.5 1
Slide 26: Better than Before
TRANSFORM Better than Before Noel Meehan Managing Director and CEO 26
Slide 27: Natural evolution of strategy, with unchanged focus on our customers
Natural evolution of strategy, with BETTER unchanged focus on Culture THAN BEFORE our customers CUSTOMER Efficiency Strategy ONE BAPCOR Building on our strong foundations, to further improve performance, reduce risk and underpin continued growth 27
Slide 28: Better Than Before - the opportunity ahead
Better Than Before - the opportunity ahead Bapcor has a track record of strong performance, with further growth opportunities ahead Bapcor has grown rapidly via acquisitions, but has not leveraged the scale opportunities of a fully integrated business Our Foundations Bapcor is investing into Group c
Slide 29: Better Than Before – by the numbers
Better Than Before – by the numbers OUR PORTFOLIO & OUR INVESTMENT1 OUR TARGETED ENGAGEMENT TOTAL PROGRAM of which FY23 FY25 GOALS1 ~300 Initiatives $20M-$25M $19.9M >$100M Net EBIT2 currently in execution phase, One-off transformation kick- Interim critical resources and Benefit split: ~40% Commerc
Slide 30: Better Than Before: portfolio progress as planned …
Better Than Before: portfolio progress as planned … Portfolio Progress (by #) Initiative Progress (by #) 350 180 165 160 300 140 Overall program in 250 122 implementation & 120 115 execution phase 104 200 100 80 Schedule on track and 150 290 288 all workstreams 30 progressing as planned 60 (includin
Slide 31: Cost of Goods Sold (COGS) – Case Studies
Cost of Goods Sold (COGS) – Case Studies Procurement - Pilot Category Intra-Bapcor Range Extension Our ambition › Deeper, more strategic relationship with fewer › Leverage hero categories and brands across all Bapcor suppliers at more favourable unit cost and T&Cs segments for better service and com
Slide 32: Summary and Outlook
Summary and Outlook Noel Meehan Managing Director and CEO 32
Slide 33: Our balanced scorecard results for FY23
Our balanced scorecard results for FY23 People & Culture Financial Customer ESG Organisational Health Capital and Returns Customer Focus Sustainability Best-in-class service Our ambition Perform and Delivering today and Employer of choice through execution Transform tomorrow excellence Our KPIs Orga
Slide 34: Our Purpose
Our Purpose Launched after extensive 360 degree bottom-up engagement Operationalise to become a purpose-led organisation and enable further growth 34
Slide 35: Outlook
Outlook › Solid demand in Trade segment to continue, but with market growth rate to return to more normalised longer-term levels › Specialist Wholesale segment to benefit from growth and consolidation opportunities in the Truck market › Retail segment to face ongoing challenging market conditions an
Slide 36: Summary & Outlook
Summary & Outlook Resilient performance in FY23 Bapcor Purpose “Be there for with all key targets achieved and what matters most” launched, to in line with guidance become a purpose-led organisation and enable further Bapcor expects a solid growth underlying1 performance in FY24, subject to market c
Slide 37: Thank you & Questions and Answers
Thank you & Questions and Answers 37
Slide 38: Appendix/ Reconciliations
Appendix/ Reconcilations 38
Slide 39: Statutory to Pro Forma reconciliation
Statutory to Pro Forma reconciliation FY23 Consolidated › The table reconciles the pro forma results to the statutory results $M Statutory DC Consolidation Transformation Tax Pro-Forma › Revenue 2,021.1 2,021.1 EBITDA 274.0 4.7 19.9 298.6 These tables are subject to rounding D&A (96.7) 2.3 (94.3) EB
Slide 40: 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 30 Jun 23 30 Jun 22 $M FY23 FY22 $M FY23 FY22 Cash and cash equivalents 78.6 80.2 Sta
Slide 41: ROIC reconciliation
ROIC reconciliation › The following tables reconcile P&L and balance sheet to the Return on Invested Capital calculation Consolidated $M FY23 FY22 Proforma EBIT 204.3 205.8 Proforma EBIT after tax (A) 143.0 144.1 Proforma Net Debt (251.7) (262.0) Equity (1,125.1) (1,092.3) Total (B) (1,376.8) (1,354
Slide 42: 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 $251.7M >$250.0M ~3.9 years 1.12x PRO FORMA NET DEBT UNDRAWN COMMITTED AVERAGE REMAINING NET LEVERAGE RATIO FA
Slide 43: Our unique automotive aftermarket ecosystem
Our unique automotive aftermarket ecosystem Consumer Service Australia/ Thailand/ NZ Trade Retail SUPPLY CHAIN Wholesale Manufacturers Vertically integrated network and specialist go-to-market channels creating competitive advantage 43
Slide 44: Commercial Opportunities – Case Studies
Commercial Opportunities – Case Studies Accelerate Loyalty Program Pricing Engine – Pilot Business Unit Our ambition › Best-in-class seamless and personalised omnichannel › Improved top-line by rolling out industry-leading experience for customers analytical and data-based strategic pricing tool › C
Slide 45: Cost Levers – Case Studies
Cost Levers – Case Studies Freight Logistics Provider Capability Uplift Pallet Improvement Program Our ambition › Improved source-to-land global capability through › Cost and ESG improvement by through improved more integrated provider relationship at lower cost pallet management strategy and waste
Slide 46: 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 47: Our Environmental, Social and Governance Strategy
Our Environmental, Social and Governance Strategy OUR BAPCOR PURPOSE ETHICAL SUPPLY ENVIRONMENTAL GOOD GOVERNANCE & POSITIVELY IMPACTING CHAIN & PROCUREMENT SUSTAINABILITY SUPPORTING AND OUR COMMUNITIES DEVELOPING TEAM MEMBERS › Human Rights and › Net-Zero Emissions › Health, Safety and › Community
Slide 48: 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 49: 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