Bapcor Ltd · ASX:BAP
Bapcor — Shareholder Meeting (November 2017)
22 slides from Bapcor's shareholder meeting presentation, Nov 2, 2017
Slide 1: 2017 Annual General Meeting CEO Presentation
2017 Annual General Meeting CEO 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: FY2017 Results, Strategy Update, FY2018 Trading Update
1 FY2017 Results 2 Strategy Update 3 FY2018 Trading Update, Outlook & Investment Highlights 4 Q&A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 3
Slide 4: FY2017 Headline Results
FY2017 Headline Results REVENUE NPAT EPS Up 50.9% to $65.8M Up 48% to (proforma continuing Up 36% (proforma continuing $1,014M ops) ops) (continuing ops) Up 64.2% to Up 77% (including Up 48% $71.5M (proforma including non-core ops) (proforma including non-core ops) non-core ops) Excellent growth i
Slide 5: 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 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 Now 31 Autobarn company stores following 7 buy backs Metcash Auto optimisation program deliv
Slide 7: Business Segment Contribution
Business Segment Contribution Total Auto Revenue Total Auto EBITDA FY2017 FY2016 FY2017 FY2016 14.9% 11.5% 28.5% 23.2% 50.4% 26.1% 24.8% 55.0% 60.3% 62.4% 21.8% 21.1% A “Trade” focused business generating circa 80% of sales/earnings “Australasia’s leading provider of aftermarket parts, accessories,
Slide 8: Business Segment Results
Business Segment Results Revenue EBITDA FY2017 FY2016 % Change FY2017 FY2016 % Change Aust Trade 465.1 419.1 11% 63.3 51.8 22% Wholseale 212.7 103.4 106% 22.9 9.5 141% Retail & Service 221.0 172.3 28% 28.2 21.6 30% Group/Elims (31.9) (9.2) (10.1) (5.9) Subtotal 866.9 685.6 26% 104.3 77.0 35% 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: Strategy Update
1 FY2017 Results 2 Strategy Update 3 FY2018 Trading Update, Outlook & Investment Highlights 4 Q&A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 11
Slide 12: 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” | 12
Slide 13: Bapcor 5 Year Strategic Targets
Bapcor 5 Year Strategic Targets Segment Contribution Aus Target AUS Target 30% 200 Trade focussed Own Stores “parts professionals” 161 Brands 22% 50% TRADE supplying workshops in NZ Target NZ Relocations NZ Target Australia & New Zealand & Refurb Target 30% 65 25 Own Stores Stores 54 1 Brands #1 or
Slide 14: 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 15: New Zealand Growth Strategy
New Zealand Growth Strategy Circa 10 new stores (20% increase) Relocate/refurbish 50% of existing stores o Includes adding showrooms Expand product range Introduce Capricorn Introduce B to B catalogue & Online Sales Grow Own brands Increase intercompany sourcing Australasia’s leading p
Slide 16: Warehouse Evolution Project
Warehouse Evolution Project Consultants have completed 12 month review 3 to 5 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 Warehouse management s
Slide 17: Potential Industry Disruptors
Potential Industry Disruptors Online - Amazon • Given 80% of Bapcor’s business is trade and wholesale – involving high service levels and deep specialised product knowledge, any impact not expected to be significant. • Retail may have an exposure however expected to be small due to product types, te
Slide 18: FY2018 Trading Update, Outlook & Investment Highlights
1 FY2017 Results 2 Strategy Update 3 FY2018 Trading Update, Outlook & Investment Highlights 4 Q&A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 18
Slide 19: Non-Core Businesses Divestments
Non-Core Businesses Divestments Footwear – completed Contract Resources North America – signed Rest of world – completed TBS – in due diligence Proceeds Confident of NZ $92 million per June 2017 accounts Australasia’s leading provider of aftermarket parts, accessories, equipment and se
Slide 20: FY2017/18 Trading Update
FY2017/18 Trading Update On track for full year forecast of 30% NPAT growth on continuing operations % Group Sales Trade 50% • Aust – sales up circa 7%, same store sales circa 4% • NZ – sales up circa 7%, same store sales circa 7% Specialist Wholesale 30% • Aust – sales up circa 42% - underlyi
Slide 21: Outlook / Investment Highlights
Outlook / Investment Highlights Organic, geographic and other strategic growth opportunities Store / branch footprint expansion in all segments Well placed electrical & electronics componentry for evolving carparc Continued margin growth – own brands, volume, warehouse evolution Hellaby au
Slide 22: Thank You – Q&A
Thank You – Q&A Insert community work collage “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 22