Bapcor Ltd · ASX:BAP
Bapcor — Macquarie Australia Conference 2023
25 slides from Bapcor's conference presentation, May 4, 2023
Slide 1: Macquarie Australia Conference Presentation
ASX Announcement Bapcor Limited (ASX:BAP) 4 May 2023 MACQUARIE AUSTRALIA CONFERENCE PRESENTATION Attached is a copy of the presentation by the CEO and Managing Director of Bapcor Limited, Noel Meehan, that is to be given at the 2023 Macquarie Australia Conference today, Thursday 4 May 2023. - Ends –
Slide 2: Macquarie Conference
BAPCOR LIMITED (BAP.ASX) 4 May 2023 Macquarie Conference Noel Meehan CEO and Managing Director
Slide 3: Agenda
Agenda PERFORM Overview and Trading Update TRANSFORM Better than Before Questions & Answers 2
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, c.$1.8B c.1,000 5,000+ FY22 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 Trusted prov
Slide 5: Our journey so far…
Our journey so far… Burson founded Burson Group Expansion of Burson Group By Garry Johnson 50th Better than Limited becomes Bapcor into and Ron Burgoine anniversary Before in Victoria, Lists on the ASX Bapcor Limited Asia Australia 1971 2014 2015 2016 2017 2018 2019 2020 2021 2022 Acquisition of Acq
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: Bapcor's approach to leadership in the ZEV market
Bapcor’s approach to leadership in the ZEV market › Zero Emission Vehicles (ZEVs) are adding to the size and complexity of the car parc, with the introduction of new / more makes & models an opportunity for Bapcor PROJECTED EV SHARE OF CAR PARC IN 20301 › Car part consumption in ZEVs differs from co
Slide 8: Our footprint and diversified segment contribution
Our footprint and diversified segment contribution Revenue by segment (1H23) THAILAND Asia Pacific Footprint (1H23) 6 8% 6 21% NT 35% Trade 12 Specialist Wholesale 4 4 4 QLD 182 Retail 50 46 86 NZ WA 77 36% 17 20 40 ACT SA 7 77 17 10 50 3 2 2 Revenue by type (1H23) NSW 10% 179 VIC 10% 56 44 79 Trade
Slide 9: 1H23 Results Summary
1H23 Results Summary REVENUE EBIT1 NPAT1 1H23 DIVIDEND2 RETURN ON INVESTED CAPITAL3 $1,000.8M $100M $62M 10.5 cps 10.2% 11.2% vs 1H22 4.5% vs 1H22 2.3% vs 1H22 5.0% vs 1H22 10.4% in 1H22 13.3% vs 1H21 -6.9% vs 1H21 -11.7% vs 1H21 16.7% vs 1H21 11.0% in 1H21 PERFORM TRANSFORM Robust operational Suppl
Slide 10: Market & Trading Update
Market & Trading Update Market Guidance - Trade and Wholesale markets remain resilient Bapcor continues to expect - Retail market with revenue a solid underlying1 performance and margin headwinds, as in FY23 with slight cost-of-living pressures improvements in trading in impact product mix 2H23 comp
Slide 11: Better Than Before
TRANSFORM Better Than Before Noel Meehan CEO and Managing Director 10
Slide 12: 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 11
Slide 13: Better Than Before - the opportunity ahead
Better Than Before - the opportunity ahead Bapcor’s portfolio of businesses has a track record of strong performance, with growth opportunities ahead Bapcor has grown rapidly via acquisitions, but has not leveraged the scale opportunities of a fully integrated business Bapcor currently operates with
Slide 14: Better Than Before – by the numbers
Better Than Before – by the numbers OUR TARGETED OUR PORTFOLIO & ENGAGEMENT OUR ENABLERS1 GOALS1 120+ ~700 $20-25M >$100M Team members with Ideas assessed since One-off transformation kick- Net EBIT Benefit FY25 initiative ownership inception start opex (70-80% in FY23) 16 ~300 $10-15M >12% Specific
Slide 15: Better Than Before: portfolio progress as planned …
Better Than Before: portfolio progress as planned … Portfolio Progress (by #) Initiative progress (by #) 350 180 165 160 300 140 250 120 115 Overall program now in implementation & 200 100 execution phase 150 80 290 297 60 100 40 Schedule on track and 50 17 all workstreams 20 progressing as 20 0 pla
Slide 16: … supported by strategic capability investment …
… supported by strategic capability investment … Market Demand Finance Lead, Activation Transformation Manager & Team November 2022 June 2022 – Commercial & Growth April 2023 Transformation Capability Capability • In-house execution capability EGM Strategy • Data driven enablement of Pricing Data an
Slide 17: … to become a purpose-led organisation
… to become a purpose-led organisation Our context: › Team members are the heart and soul of Bapcor Organi- sational Values › Our values, which have been refreshed based on team member feedback, guide Health our day-to-day operations and behaviours › Our dual focus on performance and organisational
Slide 18: Our emerging balanced scorecard on a page (FY22)
Our emerging balanced scorecard on a page (FY22) 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
Slide 19: Bapcor's investment proposition
Bapcor’s investment proposition Our markets are strong, Our business is defensive and Our people are our most Better than Before will resilient and continue to grow resilient important asset generate shareholder value • Ongoing pipeline of organic • 80% of revenue in trade and • Industry leading kno
Slide 20: Thank you & Questions and Answers
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 Thank you & of how we d
Slide 21: 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 22: Appendix
Appendix 21
Slide 23: 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 22
Slide 24: Our Environmental, Social and Governance approach
Our Environmental, Social and Governance approach ETHICAL SUPPLY ENVIRONMENTAL GOOD GOVERNANCE – POSITIVELY IMPACT CHAIN/PROCUREMENT SUSTAINABILITY SUPPORTING AND OUR COMMUNITY DEVELOPING OUR PEOPLE › Ethical sourcing and › Efficiently use our › Live our values › Stakeholder supply chain resources e
Slide 25: 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