Slide 1: FY20 Results Presentation
FY20 Results Presentation 19 August 2020
Slide 2: FY20 Results
1. FY20 Results 2. FY20 Result Details 3. Strategy Update 4. Trading Update / Outlook 2
Slide 3: FY20 Snapshot
FY20 Snapshot Solid result in an unpredictable year impacted by drought, bushfires and COVID-19 • Revenue up 12.8% (excl acquisitions up 7%) • EBITDA pre AASB16 down 4.1% to $157.8M $M FY20 FY20 FY19 Pre AASB16 Reported Pre AASB16 Reported YoY % • NPAT down 5.5% to $89.1M (2nd highest ever) Revenue
Slide 4: Other FY20 highlights
Other FY20 highlights Effectively managed external environment impacts and made solid progress delivering on strategy • Added Truckline – Heavy Commercial Trucks (Dec 19) - Contributed revenue of $57M and EBITDA of $2.8M (well ahead of expectations) • Investments in retail point of sale system, ware
Slide 5: FY20 Headline Results
FY20 Headline Results Record result for revenue while profitability down given external environment Proforma excluding AASB 16 Leases Revenue EBITDA NPAT1 EPS Up 12.8% to Down 4.1% to Down 5.5% to Down 9.2% to $1,462.7M $157.8M $89.1M 30.36 cps Proforma including AASB 16 Leases Revenue EBITDA NPAT1
Slide 6: FY20 – Financial Highlights
FY20 – Financial Highlights FY20 Variance AASB 16 FY20 FY19 Variance Proforma reported YoY impact exc. AASB 16 reported YoY Revenue $’M 1,462.7 12.8% - 1,462.7 1,296.6 12.8% Gross Margin % 46.5% (0.4 pp) - 46.5% 46.9% (0.4 pp) EBITDA – proforma $’M 217.1 31.9% (59.3) 157.8 164.6 (4.1%) EBITDA % 14.8
Slide 7: Summary of Key Performance Indicators
Summary of Key Performance Indicators Revenue* EPS (cps)* NPAT* Dividends per share Notes: * Based on proforma results excluding AASB 16. The impact of AASB 16 on NPAT was ($0.4M). 7
Slide 8: Segment Results
Segment Results AUD $M proforma Revenue EBITDA1 EBITDA % Revenue exc. AASB 16 FY20 FY19 % Change FY20 FY19 % Change FY20 FY19 Change Trade 561.7 524.5 7.1% 81.1 78.2 3.7% 14.4% 14.9% (0.5 pp) Bapcor NZ 156.3 165.0 (5.2%) 19.6 22.9 (14.0%) 12.6% 13.9% (1.3 pp) Specialist Wholesale 520.4 413.1 26.0% 5
Slide 9: Business Segment Contribution to Results
Business Segment Contribution to Results Total Revenue Total EBITDA FY20 FY19 FY20 FY19 30% 28% 27% 34% 47% 51% 55% 57% 17% 16% 19% 19% Trade focused 81% Trade focused 83% 1 Notes: 1. Trade includes Trade and Bapcor NZ segments 9
Slide 10: Burson Trade
Burson Trade $M FY20 FY19 Change Achievements • Record revenue up 7.1% with record month in June Revenue 561.7 524.5 7.1% • Very successful 6 month promotion EBITDA 81.1 78.2 3.7% • Same store sales growth 6% for the year – May / June was 14% EBITDA % 14.4% 14.9% (0.5 pp) - 70% of stores set new rev
Slide 11: Burson Trade
Burson Trade Revenue and ‘Same Store Sales’ growth EBITDA % of Sales EBITDA $M Store Numbers 11
Slide 12: Bapcor NZ
Bapcor NZ $’M FY20 FY19 Change COVID-19 impacts Revenue 156.3 165.0 (5.2%) • New Zealand significantly impacted by COVID-19 government enforced restrictions but business reacted swiftly – revenue EBITDA 19.6 22.9 (14.0%) dropped by up to 80% EBITDA % 12.6% 13.9% (1.3 pp) • $3.9M NZ government subsid
Slide 13: Specialist Wholesale
Specialist Wholesale Achievements $’M FY20 FY19 Change • Excluding Don Kyatt (Qld) light commercial truck, Truckline and Diesel Drive acquisitions: Revenue 520.4 413.1 26.0% - Revenue up 5.5% EBITDA 50.3 46.3 8.7% - EBITDA down 7.1% EBITDA % 9.7% 11.2% (1.5 pp) • Revenue and profit growth particular
Slide 14: Retail
Retail $’M FY20 FY19 Change Revenue 292.7 255.3 14.7% Achievements • Record sales and EBITDA EBITDA 30.5 27.1 12.8% • Autobarn same store sales EBITDA % 10.4% 10.6% (0.2 pp) - 9.5% full year – Company up 14.5%, Franchise up 6.6% FY20 FY19 Change - 51% May and June – Company up 60%, Franchise up 46%
Slide 15: Thailand
Thailand Achievements • Operating 6 locations in Bangkok district including procurement office • Impacted by COVID-19 government restrictions in April and May • Stores making positive progress in new market dynamics • Good relationships established with workshop groups • Potential to expand to 60-80
Slide 16: FY20 Result Details
1. FY20 Results 2. FY20 Result Details 3. Strategy Update 4. Trading Update / Outlook 16
Slide 17: Summary Income Statement
Summary Income Statement • Revenue growth of 12.8% Pro-forma, $M exc. AASB 16 FY20 FY19 Change 12.8% • Gross margin % declined 0.4 percentage points Revenue 1,462.7 1,296.6 Gross Profit 680.3 608.3 11.8% - Competitive environment Margin (%) 46.5% 46.9% (0.4 pp) - Depreciation of both the Australian
Slide 18: Summary Cash Flows
Summary Cash Flows FY20 • Cash generated excluding acquisitions was $67.4M Proforma $M Inc. AASB 16 Exc. AASB 16 • Cash conversion of 119% (inc. AASB 16) EBITDA 211.2 157.8 Operating cash flow before finance, transaction and tax • Capex costs 251.6 197.1 Cash conversion 119% 125% - Store acquisition
Slide 19: Summary Balance Sheet
Summary Balance Sheet • Net Debt/Cash $M FY20 FY20 FY19 Inc. AASB 16 Exc. AASB 16 - Proforma net debt1 at 30 June 2020 of $109.2M (June 126.3 126.3 47.6 2019: $335.3M) Cash Trade and other receivables 164.0 164.0 162.5 - Represents annualised leverage ratio of 0.7X on a twelve Inventories 363.0 363.
Slide 20: Balance Sheet - Liquidity
Balance Sheet - Liquidity Committed Maturity Facility As at 30 June 2020 Credit metrics 30 June 2020 30 June 2019 facility amount Drawn Undrawn Net leverage ratio2 0.7x 2.0x 3 year tranche Jul 2022 $267.5M $131.0M $136.5M FCCR3 3.0x 3.4x 5 year tranche Jul 2024 $150.0M - $150.0M Interest cover4 12.2
Slide 21: Dividend
Dividend • Final dividend declared for FY20 of 9.5 cents per share (fully franked) inline with FY19 Dividend History – Cents per Share • Full year dividend of 17.5 cents per share (fully franked) • Dividend payout ratio of 62% of proforma NPAT • Record date: 31 August 2020 • Payment date: 11 Septemb
Slide 22: Strategy Update
1. FY20 Results 2. FY20 Result Details 3. Strategy Update 4. Trading Update / Outlook 22
Slide 23: 5 Year Strategy / Targets
5 Year Strategy / Targets “Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions” 240 35% 75 35% Trade Trade focussed “parts professionals” supplying workshops in Australia & New Zealand AUS Stores Target AUS Own Brand Target NZ Stores Target NZ Own Brand Ta
Slide 24: Strategy Summary
Strategy Summary Consistent delivery of specific and measurable targets with significant growth still to come 1• Grow sales No change to targets • Organic (circa 2% pa) • Footprint expansion despite COVID-19 - Burson 10 – 12 stores p.a. impacts / delays - Retail up to 10 stores p.a. - NZ 5 stores p.
Slide 25: Strategic Initiatives Update
Strategic Initiatives Update • Warehouse Management System – Tier 1 System Manhattan – implemented Nunawading DC Jan 20 and operating well with improved efficiencies • Warehouse Evolution Program – Consolidated DC Melbourne (Tullamarine) using latest technology – target Q3 FY21 • Retail Point of Sal
Slide 26: Our New Melbourne DC
Our New Melbourne DC Consolidated Warehousing • The most efficient distribution • Strong investment in ‘state of the art’ • ‘Step change’ with new Melbourne Tullamarine DC • 50,000m2 warehouse • Goods to Person technology • Immediate picking growth • Substantial capacity • Manhattan WMS • Plans for
Slide 27: Trading Update / Outlook
1. FY20 Results 2. FY20 Result Details 3. Strategy Update 4. Trading Update / Outlook 27
Slide 28: Trading Update / Outlook
Trading Update / Outlook • July was a very strong month – following a solid May and June - Burson Trade same store sales up c.15% - BNT NZ same store sales up c.10% - Retail – Autobarn same store sales up c.50% - SWG sales up on a comparative basis to July 2019 by c.15% – 20% • Excellent start to FY
Slide 29: Trading Update / Outlook (cont.)
Trading Update / Outlook (cont.) • Addition of Truckline and ongoing improvements in other businesses, including retail, will positively contribute • Lockdowns in Melbourne and Auckland and any future government restrictions will have an impact on trading conditions and earnings • There is a lack of
Slide 30: Thank You
Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions 30
Slide 31: Appendix
Appendix Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions
Slide 32: New Lease Accounting Standard
New Lease Accounting Standard • Bapcor adopted the new lease accounting standard (AASB 16) from 1 July 2019 on a modified retrospective approach (comparative amounts will not be restated). • In FY19, leases were treated as operating leases and $43.7M in FY20 AASB 16 FY20 expenses was incurred which
Slide 33: Reconciliations
Reconciliations The following table reconciles the Statutory NPAT to the Proforma NPAT inclusive and exclusive of AASB 16: Detailed Strategy The following table reconciles the Statutory NPBT to the Proforma EBITDA inclusive and exclusive of AASB 16: 33
Slide 34: Reconciliations cont.
Reconciliations cont. The following table reconciles the earnings per share under Statutory NPAT and Proforma NPAT inclusive and exclusive of AASB 16: Detailed Strategy 34
Slide 35: Reconciliations cont.
Reconciliations cont. The following table reconciles the Statutory net debt to the Proforma net debt: Detailed Strategy The following table reconciles the Statutory EBITDA to Proforma EBITDA exclusive of AASB 16 by segment: $Ms FY20 FY19 Statutory Intersegment Acquisition Pro-forma Statutory Interse
Slide 36: Reconciliations cont.
Reconciliations cont. The following table reconciles the movements in provision for slow moving inventory: Detailed Strategy 36
Slide 37: 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