Slide 1: FY21 Annual Results Presentation
FY21 Annual Results Presentation 18 August 2021
Slide 2: Growing shareholder value
Growing shareholder value Bapcor is committed to growing shareholder value which we believe requires consideration of all key stakeholders. Our values Team Customers Suppliers Enhance the health, safety and Fulfill the needs of our Forge strong supplier development of our team customers and deliver
Slide 3: Strong growth since listing in 2014
Strong growth since listing in 2014 Since listing on the ASX in April 2014, Bapcor has consistently executed on its strategy and delivered strong growth – with more to come… Growth strategy execution – network and own brand Superior financial outcomes for shareholders ~1,100 $130M $2,885M c.30% 5,00
Slide 4: c.1,100 locations across Asia Pacific
c.1,100 locations across Asia Pacific Bapcor (c.1,040) and Tye Soon (c.60) operate c.1,100 locations in 8 countries across the Asia Pacific. 1 Bapcor locations South • Australia: 813 Korea • New Zealand: 222 • Thailand: 6 Hong Kong 2 Tye Soon locations Thailand Malaysia • South Korea: 20 • Singapore
Slide 5: FY21 Results Overview
FY21 Results Overview FY21 Financial Performance Strategy Update Trading Update / Outlook 5
Slide 6: FY21 Pro Forma Results
FY21 Pro Forma Results Record results achieved in FY21 on all key measures. Revenue EBITDA • Significant growth compared to FY20 actuals • Improved operating and financial performance across all $1,762M $280M business segments • Strong EPS growth 20.4% increase 28.8% increase • Continued dividend gr
Slide 7: Segment overview
Segment overview Strong revenue and EBITDA growth across all business segments. Revenue ($’M) Revenue Growth on prior year +15.5% +8.8% +26.8% +26.1% (26.4)% • Strong growth, notably in Trade, Specialist 649 660 Wholesale and Retail underpinned by: 562 520 369 ‒ Increased market share 293 156 170 ‒
Slide 8: Bapcor Trade
Bapcor Trade It was a year of milestones for Trade with its 50 year anniversary, 200th store opening and record result. Revenue EBITDA • Record revenue and EBITDA achieved in FY21 $649M $115M • Burson celebrated 50 years of serving the Australian automotive aftermarket +15.5% +19.0% • Opened the 200
Slide 9: Bapcor New Zealand
Bapcor New Zealand New Zealand recovered to above pre-COVID levels in FY21. Revenue EBITDA • Revenue increased by 8.8% from the prior year despite difficult trading conditions $170M $33M ‒ Strong performance in BNT same store sales, up 11.3% +8.8% +21.2% ‒ Re-energised approach to market driving Equ
Slide 10: Bapcor Specialist Wholesale
Bapcor Specialist Wholesale Record revenue and record earnings coupled with margin improvements across Specialist Wholesale businesses. Revenue EBITDA • Excluding Truckline and Diesel Drive (acquired in December 2019): $660M $90M ‒ Revenue increased by 17.3% +26.8% +42.2% ‒ EBITDA increased by 32.0%
Slide 11: Bapcor Retail
Bapcor Retail Retail achieved record results in FY21 and launched a range of successful new own brand products. • Record revenue and EBITDA Revenue EBITDA • Autobarn same store sales up 22.2% – company stores +28.0%; franchise $369M $65M stores +16.8% +26.1% +20.1% • Autobarn company owned stores at
Slide 12: Bapcor Asia
Bapcor Asia Expansion in Asia through a 25% investment in Tye Soon to establish Bapcor as the most prominent vehicle parts distributor in the Asia Pacific. Thailand Tye Soon • Performance continues to be heavily impacted by the • 25% equity stake in Tye Soon pandemic • Listed Singapore entity • Oper
Slide 13: Supply Chain
Supply Chain The purpose built Victorian DC will deliver new capabilities to drive efficiencies and increase market share. Victorian Distribution Centre • State of the art distribution centre commenced in Apr-21 • Goods to Person system being commissioned • 13 Melbourne DCs to be transitioned progre
Slide 14: Technology
Technology Investing and upgrading our technology infrastructure to support growth in the business. • Ecommerce ‒ Implemented new Retail B2C in Australia ‒ Implemented new Trade B2B in Australia ‒ Launched new Trade B2B in New Zealand ‒ Launched new Trade B2B in Thailand • Online Vehicle Servicing –
Slide 15: FY21 Results Overview
FY21 Results Overview FY21 Financial Performance Strategy Update Trading Update / Outlook 15
Slide 16: Summary Income Statement
Summary Income Statement Profitability growth significantly outpaced revenue growth in FY21. $M FY21 FY20 % change • Revenue and EBITDA growth of 20.4% and 28.8%, respectively Revenue 1,761.7 1,462.7 20.4% ‒ Excluding the Truckline and Diesel Drive acquisitions, Group revenue EBITDA 279.5 217.1 28.8
Slide 17: Summary Cash Flows
Summary Cash Flows Investment in the new Victorian DC, inventory and network expansion resulted in lower cash generation in FY21 but positions Bapcor strongly going forward. $M FY21 FY20 • Cash outflow of $26.3M, excluding acquisitions and major capex – EBITDA 279.5 217.1 predominantly due to c.$45M
Slide 18: Summary Balance Sheet
Summary Balance Sheet Temporary increase in inventory ensures ability to meet elevated demand despite global supply chain issues and supply shortages with some manufacturers. $M 30-Jun-21 30-Jun-20 Net Debt Cash 39.6 126.3 Trade and other receivables 193.1 164.0 • Pro forma net debt1 at 30 June 2021
Slide 19: Liquidity
Liquidity Bapcor retains significant financial flexibility which enables us to respond rapidly to acquisition opportunities and continue to invest in high returning projects. $164.1M $312.0M 2.4 years 0.7x Undrawn committed Pro forma net debt Average remaining tenor Net leverage ratio facilities As
Slide 20: Dividends
Dividends Full year dividend increased by 2.5 cents to 20 cents per share – Bapcor has increased dividends every year since listing. Dividends (cps) • Fully franked final dividend of 11.0 cents per share 25 ‒ 15.8% increase on the prior year 20.0 ‒ Reflects strong underlying NPAT result 20 17.5 17.0
Slide 21: FY21 Results Overview
FY21 Results Overview FY21 Financial Performance Strategy Update Trading Update / Outlook 21
Slide 22: Strategy – Continuing to grow the business
Strategy – Continuing to grow the business With our team members, safety and our customers always at the core of what we do. Drive expansion of network footprint – physical and online Supplement market leading brands with Bapcor own brand products Realise benefits and efficiencies of the Bapcor Grou
Slide 23: Strategic Targets
Strategic Targets Continued investments in our network and own brand programs to drive future growth with clear targets to deliver 1. Drive expansion of network footprint – physical 2. Supplement market leading brands with Bapcor and online own brand products > 1,500 65.0% ~ 1,100 51.7% 45.0% 45.0%
Slide 24: Supply Chain
Supply Chain Supply chain initiatives will continue to drive profitability and be a competitive advantage. DC evolution Transport • Complete business transitions into Victorian DC • Implement self managed transport strategy • Deliver significant environmental benefits • Focus on freight forwarding p
Slide 25: Supply Chain – New DC in Brisbane Queensland
Supply Chain – New DC in Brisbane Queensland A purpose built Queensland DC will deliver new capabilities to drive efficiencies and increase market share – providing us with the most modern and efficient supply chain in the industry. Queensland Distribution Centre Queensland DC • State of the art dis
Slide 26: ESG and sustainability commitment
ESG and sustainability commitment Bapcor is committed to accelerating our efforts in ESG and aspires to be net carbon neutral. Good governance – Positively impact our Ethical supply chain / Environmental sustainability supporting and developing community procurement our people • Engage stakeholders
Slide 27: FY21 Results Overview
FY21 Results Overview FY21 Financial Performance Strategy Update Trading Update / Outlook 27
Slide 28: FY22 Trading Update / Outlook
FY22 Trading Update / Outlook • July 2021 was impacted by COVID lockdowns in most states in Australia • The fundamentals of the vehicle aftermarket continue to remain strong – trends established during COVID-19 will likely continue, notably: ‒ Increase in secondhand vehicle sales with more cars on t
Slide 29: Appendices
Appendices Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions 29
Slide 30: Reconciliations
Reconciliations The tables below reconcile the pro forma results to the statutory results for FY21 and FY20. Statutory to Pro forma NPAT Consolidated $M Note FY21 FY20 Statutory NPAT 2 118.8 79.2 Notes: Victorian DC consolidation 3 9.9 11.6 1. These tables are subject to rounding. Other activities 4
Slide 31: Reconciliations (cont'd)
Reconciliations (cont’d) The following table reconciles the statutory to pro forma net debt. Consolidated $Ms 30-Jun-21 30-Jun-20 Cash and cash equivalents 39.6 126.3 Finance leases (226.3) (181.8) Borrowings excl. unamortised transaction costs capitalised (205.5) (231.0) Statutory net debt (392.2)
Slide 32: Reconciliations (cont'd)
Reconciliations (cont’d) The following table reconciles the movements in provision for slow moving inventory. Consolidated $Ms 30-Jun-21 30-Jun-20 Opening balance (55.9) (43.6) Additional provisions recognised against profit (0.2) (4.9) Additions through business combinations (0.4) (9.3) Inventory w
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: Bapcor
Bsapcor Bapcor Bapcor Bapcor Bapcor Bapcor TRADE Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions