Slide 1: FY2019 Results Presentation
FY2019 Results Presentation
Slide 2: FY2019 Results, Details, Strategy and Outlook
1. FY2019 Results 2. FY2019 Result Details 3. Strategy Update 4. FY2020 Trading Update / Outlook 2
Slide 3: FY2019 Headline Results
FY2019 Headline Results Record results in FY2019 on all key measures. Revenue EBITDA NPAT EPS Up 4.8% to Up 9.8% to Up 9.0% to Up 8.0% to $1,297M $164.6M $94.3M 33.45cps (continuing ops) (proforma continuing ops) (proforma continuing ops) (proforma continuing ops) Up 6.9% Up 11.7% Up 11.2% Up 10.3%
Slide 4: FY2019 Operational Highlights
FY2019 – Operational Highlights • FY2019 result in line with guidance • Result reflects resilience to market conditions • Major segments of Burson Trade, Bapcor New Zealand and Specialist Wholesale all recorded solid growth • Retail segment challenged in H2 due to market conditions and high proporti
Slide 5: FY2019 Financial Highlights
FY2019 – Financial Highlights FY2019 FY2018 Variance Continuing Operations1 Revenue $’M 1,296.6 1,236.7 4.8% Gross Margin % 46.9% 46.0% 0.9 pp EBITDA – proforma $’M 164.6 150.0 9.8% EBITDA % 12.7% 12.1% 0.6 pp NPAT – proforma $’M 94.3 86.5 9.0% EPS – proforma cps 33.45 30.97 8.0% Dividend cps 17.0 1
Slide 6: Summary of Key Performance Indicators
Summary of Key Performance Indicators Revenue* EPS (cps)* NPAT* Dividends per share Notes: * Based on proforma continuing operations where appropriate 6
Slide 7: Segment Results – Continuing Operations
Segment Results – continuing operations Revenue EBITDA EBITDA % Revenue AUD $’M proforma FY2019 FY2018 % Change FY2019 FY2018 % Change FY2019 FY2018 Change Trade 524.5 501.6 4.6% 78.2 72.1 8.5% 14.9% 14.4% +0.5 pp Bapcor NZ 165.0 153.6 7.4% 22.9 20.1 13.8% 13.9% 13.1% +0.8 pp Bapcor NZ – TRS1 - 24.3
Slide 8: Business Segment Contribution to Results
Business Segment Contribution to Results Total Revenue Total EBITDA Trade focused 84% Notes: 1. Trade includes Trade and Bapcor NZ segments 1 1 8
Slide 9: Burson Trade
Burson Trade Revenue and ‘Same Store Sales’ growth EBITDA % of Sales EBITDA $M Store Numbers 9
Slide 10: Burson Trade
Burson Trade FY2019 in review: $’M FY2019 FY2018 Change • Good revenue and EBITDA growth Revenue 524.5 501.6 4.6% • Same store sales growth of 2.2% (growth of 2.5% in H2) EBITDA 78.2 72.1 8.5% • New stores of 11 to 181 stores (7 greenfield) EBITDA % 14.9% 14.4% +0.5 pp • Gross margin expansion from
Slide 11: Bapcor NZ
Bapcor NZ FY2019 in review: $’M FY2019 FY2018 Change • Strong revenue and EBITDA growth in softening economy Revenue 165.0 153.6 7.4% • BNT same store sales growth of 5.3% (growth of 5.9% in H2) EBITDA 22.9 20.1 13.8% • 4 greenfield BNT stores during FY2019 growing total stores to 58 EBITDA % 13.9%
Slide 12: Specialist Wholesale
Specialist Wholesale FY2019 in review: $’M FY2019 FY2018 Change • Revenue and profit growth particularly strong in Electrical/Engine Revenue 413.1 364.3 13.4% Management business units • Increase in intercompany sales of 35% EBITDA 46.3 38.6 20.0% • Creation of “Commercial Truck Parts Group”, now wi
Slide 13: Retail
Retail FY2019 in review: • Revenue growth largely driven by new stores and conversion of franchise to $’M FY2019 FY2018 Change company owned stores • Same stores sales growth – Autobarn company owned stores up 5% (growth of Revenue 255.3 239.1 6.8% 5.7% in H2); franchise stores flat EBITDA 27.1 28.8
Slide 14: Asia
Asia FY2019 in review: • Positive start to Asian expansion • 4 greenfield stores at June 2019 • Rollout slower than targeted due to delays in store refurbishments and supply chain • Store profit ramp up similar to Australian trade store experience • Good progress in selling to chain workshops FY2020
Slide 15: FY2019 Results, Details, Strategy and Outlook
1. FY2019 Results 2. FY2019 Result Details 3. Strategy Update 4. FY2020 Trading Update / Outlook 15
Slide 16: Summary Income Statement
Summary Income Statement • Revenue growth of 4.8%; excluding divested TRS Pro-forma, $’M FY2019 FY2018 Change business was 6.9% Continuing Operations • Same Store sales growth Revenue 1,296.6 1,236.7 4.8% • Burson Trade 2.2% Gross Profit 608.3 569.4 6.8% Margin (%) 46.9% 46.0% +0.9 pp • BNT 5.3% COD
Slide 17: Summary Cash Flows
Summary Cash Flows • Cash generated excluding acquisitions / divestments $’M FY2019 negative $5M. Includes project capex of ~$10M and EBITDA – Proforma 164.6 inventory investment Operating cash flow before finance, transaction and tax costs 130.6 Cash conversion 79.4% • Cash conversion of 79.4% due
Slide 18: Summary Balance Sheet
Summary Balance Sheet • Net Debt/Cash $’M FY2019 FY2018 • Net debt at June 2019 is $336.3M (June 2018: $289.5M) Cash 47.6 40.2 • Represents annualised leverage ratio of <2.0X on a twelve month Trade and other receivables 162.5 146.8 annualised EBITDA basis. Interest cover >10 times (EBITDA/Interest)
Slide 19: FY2019 Results, Details, Strategy and Outlook
1. FY2019 Results 2. FY2019 Result Details 3. Strategy Update 4. FY2020 Trading Update / Outlook 19
Slide 20: Strategic Targets
Strategic Targets No change to targets – consistent, specific, measurable targets. Significant growth still to come. • Grow sales • Organic • Footprint expansion • Margin • Procurement / buying initiatives • Pricing management • Increase “own brand” sales • Optimise intercompany sourcing of product
Slide 21: Strategic Initiatives Update
Strategic Initiatives Update • Warehouse Evolution Program – feasibility and detailed planning reaching conclusion with more detailed announcement expected in H1 FY20 • Warehouse Management System – First location expected to go live in October 2019 • Point of Sale System Retail – some delays due to
Slide 22: FY2019 Results, Details, Strategy and Outlook
1. FY2019 Results 2. FY2019 Result Details 3. Strategy Update 4. FY2020 Trading Update / Outlook 22
Slide 23: FY2020 Trading Update / Outlook
FY2020 Trading Update / Outlook • Market fundamentals and appropriate opportunities continue to drive profit growth; • First six weeks trading shows improvement in all segments • For FY2020 we anticipate mid to high single digit percentage increase in pro-forma NPAT, with • EBITDA approx. 2 percenta
Slide 24: Thank You
THANK YOU Now, Q&A 24
Slide 25: Australasia's Leading Provider
Australasia's leading provider of aftermarket parts, accessories, equipment and services 25
Slide 26: New Lease Accounting Standard
New Lease Accounting Standard • Bapcor will adopt the new lease accounting standard (AASB 16) from 1 July 2019 on a Estimated impact of new lease accounting standard on FY2020 modified retrospective approach (comparative amounts will not be restated) Balance sheet – impact on adoption at 1 July 2019
Slide 27: Detailed Strategy
Detailed Strategy Detailed Strategy 27
Slide 28: Electric Vehicles
Electric Vehicles “Modelling suggests the electric vehicle share of new car sales in Australia will rise from about 0.34% today to 8% in 2025. It is predicted to then leap to 27% of new car sales in 2030 and 50% in 2035 as prices of electric car technology fall. There is usually a 10-15 year lag bet
Slide 29: Reconciliations
Reconciliations Detailed Strategy The table below reconciles the pro-forma EBITDA result to the statutory result fro FY19 and FY18: $Ms FY19 FY18 Statutory Intersegment Acquisition costs Pro-forma Statutory Intersegment Acquisition costs Pro-forma EBITDA per EBITDA per per segment Pro-forma EBITDA p
Slide 30: 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