Bapcor Ltd · ASX:BAP
Bapcor — Investor Day (July 2019)
66 slides from Bapcor's investor day presentation, Jul 3, 2019
Slide 1: Investor Day – Brisbane - July 3, 2019
For personal use only Investor Day – Brisbane - July 3, 2019
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: Senior Management Team
Senior Management Team For personal use only ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 4: Aftermarket Supply Chain
Aftermarket Supply Chain For personal use only S Retail U P P Trade: • Burson Australia Retail L Y • New Zealand • Thailand C H Specialist Wholesale Group: A • Mechanical I • Engine Management N “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 5: Key Automarket Stats 2018
Key Automarket Stats 2018 For personal use only Global Australia # vehicles on the road 1,200,000,000 19,200,000 Average age 11.6 years 10.1 years # cars sold 2018 84,000,000 870,000 Car Parc growth ?? 2.1% # EV’s sold 2018 2,100,000 1,352 EV’s as of 2018 sales 2.5% 0.2% Diesel of fleet 35% 23.4% EV
Slide 6: Continued growth of the Australian Car Parc
Continued growth of the Australian Car Parc… For personal use only Estimated 19.2m registered vehicles at the end of 2018, an increase of 2% on 2017 Average age of vehicles stable at 10 - 11 years New vehicle sales in 2018 were down 3% on 2017 and ending four years of YoY growth 60% of new v
Slide 7: Over locations across Australia & NZ
Over 940 locations across Australia & NZ For personal use only Trade Specialist Wholesale THAILAND Retail & Service NT 4 13 7 4 THAI CAR PARC 3 3 QLD • No. of vehicles 16m • New cars sold p.a. 850k 163 • Ave. age of vehicles 10 yrs 92 • Ave. annual growth c. 5% p.a. WA VIC 43 28 61 194 43 10 8 25 11
Slide 8: Business Segment Contribution to Results
Business Segment Contribution to Results For personal use only Total Auto Revenue Total Auto EBITDA H1 FY19 H1 FY18 H1 FY19 H1 FY18 80% 83% 25% 24% 29% 28% $636M 51% $616M 53% $76M $70M 58% 58% 17% 18% 20% 19% ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 9: Summary of Key Performance Indicators
Summary of Key Performance Indicators For personal use only Revenue * EPS (cps) * 1,236.7 31.0 1,013.6 24.4 based on extrapolated H1 685.6 17.9 616.1 636.1 15.3 13.6 14.5 435.1 10.6 375.3 322.2 8.0 6.6 185.0 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 NPAT * Dividends per s
Slide 10: Strategy & Industry Fundamentals
For personal use only STRATEGY & Industry Fundamentals ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 11: Bapcor Year Strategic Targets
Bapcor 5 Year Strategic Targets For personal use only NO CHANGE TO GROWTH STRATEGY
Slide 12: Growth Strategy
Growth Strategy For personal use only All current business segments; Grow sales Organic ( circa 2 to 3% pa) Store Footprint Expansion Burson 10-12 stores pa, NZ 5 stores pa Retail up to 10 stores pa Margin Procurement / Buying Pricing Management Own Brand Intercompany Operati
Slide 13: Strategy
Strategy For personal use only Consistent strategy with specific, clear, measurable targets. No changes to direction. We know what we do best and stick with it. “Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 14: Bapcor Thailand
Bapcor Thailand For personal use only • Now operating 4 stores in Bangkok district • A procurement office and 1 additional store planned June / July • Stores making positive progress in new market dynamics • Good relationships being established with a significant chains presenting good growth opport
Slide 15: For personal use only
For personal use only . ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 16: Trade
TRADE For personal use only Craig Magill - EGM Trade ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 17: Trade Market Overview
TRADE Market Overview For personal use only Our core focus is the distribution of auto parts to independent and chain mechanic workshops throughout Australia. Through an extensive distribution network, we provide over 500,000 unique parts to fit more than 20,000 makes and models for the Australian a
Slide 18: Trade Key Stats
TRADE Key Stats For personal use only Annual Sales: $520M EBITDA: $75M # Sites / Locations: 181 # People: 1,500 # Active Customers 30,000+ # Delivery Vehicles 800 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 19: Trade Locations
TRADE Locations For personal use only NT 3 QLD WA 43 10 VIC 53 NSW 52 SA ACT 13 3 TAS 6 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 20: Trade Strategy
TRADE Strategy For personal use only 230 35% AUS TARGET STORES OWN BRAND TARGET NOW: 181 NOW: 24% OTHER TARGETS Same store sales minimum 3% pa ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 21: Trade Precision Equipment
TRADE Precision Equipment For personal use only Australia’s Leading ‘Specialist’ Garage Equipment Supplier Import, Sales, Service & Installation Lifting, Wheel Service, Lubrication, Diagnostic & General Other Precision – OEM, Dealership & Key Account Workshops Burson – Independent Workshop
Slide 22: Trade Precision Equipment
TRADE Precision Equipment For personal use only Australia’s Leading ‘Specialist’ Garage Equipment Supplier Import, Sales, Service & Installation Lifting, Wheel Service, Lubrication, Diagnostic & General Other Precision – OEM, Dealership & Key Account Workshops Burson – Independent Workshop
Slide 23: Trade Key Priorities
TRADE Key Priorities For personal use only Growth of footprint and sales Intercompany collaboration Customer targeting Range enhancement Continued growth in equipment ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 24: Trade Thank You
TRADE For personal use only THANK YOU ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 25: New Zealand
NEW ZEALAND For personal use only Martin Storey - EGM Bapcor New Zealand ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 26: New Zealand Market Overview
NEW ZEALAND Market Overview For personal use only We are the leading aftermarket parts and specialist wholesale supply group to the automotive trade across New Zealand. Our businesses cover the Trade, Specialist Wholesale, and Service automotive aftermarket segments, with services offered across bot
Slide 27: New Zealand Key Stats
NEW ZEALAND Key Stats For personal use only NZD Annual Sales: $175M EBITDA: $25M # Sites / Locations: 216 # People: 620 # Active Customers: 10,500 # Delivery Vehicles: 195 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 28: New Zealand Locations
NEW ZEALAND Locations For personal use only Northern 77 Central 39 Lower NI 33 Southern 51 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 29: New Zealand Strategy
NEW ZEALAND Strategy For personal use only 75 25 A$50m 150 TRADE TRADE RELOCATION SPECIALIST WHOLESALE SERVICE NZ TARGET STORES & REFURB TARGET NZ TARGET TURNOVER NZ STORES TARGET NOW: 59 NOW: 6 NOW: A$31m NOW: 115 OTHER TARGETS F19 same store sales are +4% Own brand target of 35% - currently 27
Slide 30: New Zealand Key Priorities
NEW ZEALAND Key Priorities For personal use only Footprint expansion Margin and price improvement Core and own brand range expanded New and adjacent market segments Leverage intercompany Warehousing consolidations People - attract, retain, develop! ”Australasia’s leading provider of af
Slide 31: New Zealand Thank You
NEW ZEALAND For personal use only THANK YOU ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 32: Specialist Wholesale Group - Engine Management
SPECIALIST WHOLESALE GROUP (SWG) - ENGINE MANAGEMENT For personal use only Steve Drummy - EGM SWG Engine Management ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 33: SWG Engine Management Market Overview
SWG – ENGINE MANAGEMENT Market Overview For personal use only Our Specialist Wholesale Group supplies an extensive range of products through a vertically integrated supply chain within the Bapcor Group and to the broader Automotive Aftermarket. The Engine Management businesses specialize in thermal
Slide 34: SWG Engine Management Key Stats
SWG – ENGINE MANAGEMENT Key Stats For personal use only Annual Sales: $220M *EBITDA: $23M # Business Units: 6 # Sites / Locations: 145 # People: 488 (Excluding OL sites) # Active Customers: 27,300 * Based on SWG % sales per Dec 18 results ”Australasia’s leading provider of aftermarket parts, accesso
Slide 35: SWG Engine Management Locations
SWG – ENGINE MANAGEMENT Locations For personal use only NT 2 QLD WA 41 21 VIC 31 NSW 34 SA 9 ACT 1 NZ TAS 2 4 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 36: SWG Engine Management Strategy
SWG – ENGINE MANAGEMENT Strategy For personal use only A$500m 55% AUS TURNOVER OWN BRAND TOTAL SWG TARGET TOTAL SWG TARGET NOW: $412.6m NOW: 45% ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 37: SWG Engine Management Key Priorities
SWG – ENGINE MANAGEMENT Key Priorities For personal use only “Own Safety” Team / People Development Increase own brand sales & intercompany sales Marketing focus on developing brands Footprint Expansion Air Conditioning launch Industrial & Mining focus Systems review ”Australasia’s l
Slide 38: SWG Engine Management Thank You
SPECIALIST WHOLESALE GROUP (SWG) - ENGINE MANAGEMENT For personal use only THANK YOU ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 39: Specialist Wholesale Group - Mechanical
SPECIALIST WHOLESALE GROUP (SWG) - MECHANICAL For personal use only Mathew Cooper - EGM SWG Mechanical ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 40: SWG Mechanical Market Overview
SWG – MECHANICAL Market Overview For personal use only Our Specialist Wholesale Group supplies an extensive range of products through a vertically integrated supply chain within the Bapcor Group and to the broader Automotive Aftermarket. The Mechanical businesses specialize in brake systems, bearing
Slide 41: SWG Mechanical Key Stats
SWG – MECHANICAL Key Stats For personal use only Annual Sales: $210M *EBITDA: $30M # Business Units: 7 # Sites / Locations: 43 # People: 430 # Active Customers: 12,600 * Based on SWG % sales per Dec 18 results adj for CVPG ”Australasia’s leading provider of aftermarket parts, accessories, equipment
Slide 42: SWG Mechanical Locations
SWG – MECHANICAL Locations For personal use only QLD WA 11 5 VIC 15 NSW 8 SA 4 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 43: SWG Mechanical Strategy
SWG – MECHANICAL Strategy For personal use only A$500m 55% 40 AUS TURNOVER OWN BRAND CVG LOCATIONS TOTAL SWG TARGET TOTAL SWG TARGET TARGET NOW: $412.6m NOW: 45% NOW: 14 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 44: SWG Mechanical Key Priorities
SWG – MECHANICAL Key Priorities For personal use only Footprint Expansion Product development and definition Marketing Increase own brand sales & intercompany sales Customer loyalty – increasing share of wallet Distribution efficiency Supplier management ”Australasia’s leading provider
Slide 45: SWG Mechanical Thank You
SPECIALIST WHOLESALE GROUP (SWG) - MECHANICAL For personal use only THANK YOU ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 46: Retail
RETAIL For personal use only Tim Cockayne - EGM Retail ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 47: Retail Market Overview
RETAIL Market Overview For personal use only We distribute parts and accessories from a wide variety of brands via a network of over 500 company-owned, franchise and satellite stores. Our independents form a major part of the communities in which they operate by providing a unique product and servic
Slide 48: Retail Key Stats
RETAIL Key Stats For personal use only Bapcor Sales: $260M Total Sales (incl. franchisees): $575M EBITDA: $25M # Sites / Locations: 370 # People: 900 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 49: Retail Locations
RETAIL Locations For personal use only NT 6 QLD WA 72 31 VIC 94 NSW 81 SA ACT 75 3 TAS 8 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 50: Retail Strategy
RETAIL Strategy For personal use only 200 200 500 AUS AUTOBARN INDEPENDENT AUS SERVICE TARGET STORES TARGET STORES TARGET STORES NOW: 135 NOW: 203 NOW: 124 35% 90% OWN BRAND TARGET INTERCOMPANY NOW: 24% SOURCING TARGET ”Australasia’s leading provider of aftermarket parts, accessories, equipment and
Slide 51: Retail Key Priorities
RETAIL Key Priorities For personal use only Autobarn Footprint Expansion Marketing & Brand Awareness Wholesale Sales Penetration Own Brands Development Digital / Omni Channel ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 52: Retail Thank You
RETAIL For personal use only THANK YOU ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 53: Thailand
THAILAND For personal use only Darryl Abotomey Managing Director & CEO ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 54: Thailand Market Overview
THAILAND Market Overview For personal use only Based in Bangkok, Burson Auto Parts Thailand continues the same famous service provided by Burson in Australia, supplying DIY consumers and garage and fleet customers with a wide range of premium-quality OE and aftermarket automotive parts, car accessor
Slide 55: Thailand Locations
THAILAND Locations For personal use only THAI CAR PARC • No. of vehicles 16m • New cars sold p.a. 850k • Ave. age of vehicles 10 yrs • Ave. annual growth c. 5% p.a. ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 56: Thailand Key Stats
THAILAND Key Stats For personal use only Annual Sales: NA EBITDA: $0 # Sites / Locations: 4 # People: 45 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 57: Thailand Key Priorities
THAILAND Key Priorities For personal use only Footprint expansion to 6 locations Brand awareness – establish business Grow sales thru value proposition Range Speed of service Knowledgeable people Launch parts catalogue to stores and customers People training & development Supplier
Slide 58: Thailand Thank You
THAILAND For personal use only THANK YOU ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 59: Warehousing & Distribution
WAREHOUSING & DISTRIBUTION For personal use only Darryl Abotomey | Managing Director & CEO ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 60: Warehousing & Distribution Overview
WAREHOUSING & DISTRIBUTION Overview For personal use only Our goal is to be the most efficient supply chain in the automotive aftermarket and our warehousing and logistics functions are evolving to meet the requirements of the Group. The warehousing evolution program remains a five to seven year imp
Slide 61: Warehousing & Distribution Key Stats
WAREHOUSING & DISTRIBUTION Key Stats For personal use only Total Warehousing Cost: $32M Total Distribution Cost: $35M Total Area (m²): 100,000+ # Sites / Locations: 18 (excl SW branches) # People: 575 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 62: Major DC Locations
WAREHOUSING & DISTRIBUTION Major DC Locations For personal use only QLD WA 2 1 VIC 3 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 63: DC Evolution – Goods To Person
WAREHOUSING & DISTRIBUTION DC Evolution – Goods To Person For personal use only GTP GTP ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 64: Warehousing & Distribution Key Priorities
WAREHOUSING & DISTRIBUTION Key Priorities For personal use only Supply Chain Efficiencies Roll-out Warehouse Management System DC Evolution ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 65: Warehousing & Distribution Thank You
WAREHOUSING & DISTRIBUTION For personal use only THANK YOU ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 66: Investor Day – Brisbane - July 3, 2019
For personal use only Investor Day – Brisbane - July 3, 2019