Bapcor Ltd · ASX:BAP

Bapcor — H1 FY2021 Earnings Presentation

33 slides from Bapcor's earnings presentation, Feb 17, 2021

  1. Slide 1: H1 FY21 Results Presentation

    H1 FY21 Results Presentation 17 February 2021

  2. Slide 2: Agenda: H1 FY21 Results

    1. H1 FY21 Results 2. H1 FY21 Result Details 3. Strategy Update 4. FY21 Trading Update / Outlook 2

  3. Slide 3: H1 FY21 Headline Results – Proforma

    H1 FY21 Headline Results – Proforma Record results in H1 FY21 on all key measures1. Revenue EBITDA EBIT NPAT2 Up 25.8% to Up 36.5% to Up 45.0% to Up 54.0% to $883.6M $145.6M $106.8M $70.2M EPS Interim dividend Cash conversion Net leverage ratio Up 28.9% to Up 12.5% to 9.0 ~84% ~0.6 X Impacted by sto

  4. Slide 4: H1 FY21 Highlights

    H1 FY21 Highlights • Record result for revenue and earnings $M H1 FY21 H1 FY20 YoY % Revenue 883.6 702.5 25.8 • Increase in revenue and EBITDA in every business segment EBITDA proforma 145.6 106.7 36.5 • Result reflects resilience of business model EBIT proforma 106.8 73.7 45.0 NPAT proforma 70.2 45

  5. Slide 5: Summary of Key Performance Indicators

    Summary of Key Performance Indicators Revenue EPS (cps)1 NPAT1 Dividends per share Notes: 1. Based on proforma results. FY17 – FY19 are all pre AASB16 and have a shaded background. FY20 – FY21 are post AASB16. Where required, management estimations have been used in deriving CAGR to provide indicati

  6. Slide 6: Segment Results – including AASB16

    Segment Results – including AASB16 Revenue EBITDA1 EBITDA % Revenue AUD $’M proforma H1 FY21 H1 FY20 % Change H1 FY21 H1 FY20 % Change H1 FY21 H1 FY20 Change Trade 313.7 279.3 12.3% 57.4 46.1 24.5% 18.3% 16.5% +1.8 pp Bapcor NZ 85.7 84.3 1.6% 16.0 14.9 7.5% 18.6% 17.6% +1.0 pp Specialist Wholesale 3

  7. Slide 7: Trade

    Trade $M H1 FY21 H1 FY20 Change • Record revenue and EBITDA Revenue 313.7 279.3 12.3% • Burson same store sales growth 11% EBITDA 57.4 46.1 24.5% • 9 new stores to 195 stores EBITDA % 18.3% 16.5% +1.8 pp • Equipment business continues to perform well – Burson same store sales 11.0% > 5.0% c.$22M of

  8. Slide 8: Trade

    Trade Revenue and ‘Same Store Sales’ growth EBITDA1 % of Sales EBITDA1 $M Store Numbers Notes: 1. Based on proforma results. FY17 – FY19 are all pre AASB16 and have a shaded background. FY20 – FY21 are post AASB16. 8

  9. Slide 9: New Zealand

    New Zealand $’M H1 FY21 H1 FY20 Change • Despite difficult trading conditions, Bapcor NZ increased Revenue 85.7 84.3 1.6% revenue and delivered record EBITDA EBITDA 16.0 14.9 7.5% • Initiatives underway to improve performance EBITDA % 18.6% 17.6% +1.0 pp • Own brand at 31% BNT same store sales 1.3%

  10. Slide 10: Specialist Wholesale

    Specialist Wholesale $’M H1 FY21 H1 FY20 Change • Achieved record revenue and EBITDA Revenue 328.4 235.4 39.5% • Excluding Truckline and Diesel Drive acquisitions: EBITDA 45.9 29.7 54.9% − Revenue up 17.1% EBITDA % 14.0% 12.1% 1.4 pp − EBITDA up 36.2% • Solid improvement in Truckline profitability H

  11. Slide 11: Retail

    Retail $’M H1 FY21 H1 FY20 Change • Record sales and EBITDA Revenue 197.8 137.4 44.0% • EBITDA margin up to 19.6% EBITDA 38.8 24.9 55.8% • Autobarn same store sales up 37% EBITDA % 19.6% 18.1% +1.5 pp − Company up 49%, Franchise up 27% • Autopro & Sprint solid performance with strong volume growth A

  12. Slide 12: Retail – New Autobarn store concept

    Retail – New Autobarn store concept 12

  13. Slide 13: Thailand

    Thailand • Stores performing well given the circumstances, especially COVID restrictions • Strong relationships maintained with workshop groups • Expansion on hold due to COVID economic impacts • Continue to see potential to expand 13

  14. Slide 14: 2. H1 FY21 Result Details

    1. H1 FY21 Results 2. H1 FY21 Result Details 3. Strategy Update 4. FY21 Trading Update / Outlook 14

  15. Slide 15: Summary Income Statement

    Summary Income Statement • Revenue growth of 25.8% Pro-forma, $M H1 FY21 H1 FY20 Change Revenue 883.6 702.5 25.8% − Excluding Truckline and Diesel Drive acquisitions, Gross Profit 402.7 333.9 20.6% group revenue growth of 18.3% Margin (%) 45.6% 47.5% (2.0 pp) • Gross margin % declined 2.0 percentage

  16. Slide 16: Summary Cash Flows

    Summary Cash Flows Proforma $M H1 FY21 H1 FY20 • Cash generated excluding acquisitions was ($6.4M) EBITDA 145.6 106.7 • Cash conversion of 84%; impacted by increased Operating cash flow before finance, transaction and tax 122.3 92.8 inventory levels including $42.3M stock in transit costs Cash conve

  17. Slide 17: Summary Balance Sheet

    Summary Balance Sheet $M H1 FY21 FY20 H1 FY20 • Net Debt/Cash Cash 59.0 126.3 43.0 − Proforma net debt1 at 31 December 2020 of $120.4M Trade and other receivables 162.6 164.0 178.2 (June 2020: $109.2M) Inventories 418.0 363.0 374.4 − Represents annualised leverage ratio of 0.6X on a PP&E 87.3 75.2 6

  18. Slide 18: Liquidity

    Liquidity Committed Maturity Facility As at 30 Dec 2020 Credit metrics 31 Dec 2020 30 Jun 2020 facility amount Drawn Undrawn Net leverage ratio2 0.6x 0.7x 3 year tranche Jul 2022 $267.5M $71.8M $195.7M FCCR3 3.0x 3.0x 5 year tranche Jul 2024 $150.0M - $150.0M Interest cover4 12.2x 12.2x 7 year tranc

  19. Slide 19: Dividend

    Dividend • Interim dividend declared for FY21 of 9.0 cents per Dividend History – Cents per Share share (fully franked) • Record date: 26 February 2021 • Payment date: 12 March 2021 • Dividend reinvestment plan continues to be suspended for FY21 interim dividend • Shares on issue as at 31 December 2

  20. Slide 20: 3. Strategy Update

    1. H1 FY21 Results 2. H1 FY21 Result Details 3. Strategy Update 4. FY21 Trading Update / Outlook 20

  21. Slide 21: 5 Year Strategy / Targets

    5 Year Strategy / Targets “Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions” Trade focussed “parts professionals” supplying 240 35% 75 35% AUS Own Brand NZ Stores NZ Own Brand Trade workshops in Australia & New Zealand AUS Stores Target Target Target Ta

  22. Slide 22: Strategy – Continuing to grow the business

    Strategy – Continuing to grow the business 1 Drive expansion of network 2 Supplement market leading 3 Realise benefits and 4 Invest in our people footprint – physical and brands with Bapcor private efficiencies of the Bapcor online label products Group • Enhance organisational capability • Continue

  23. Slide 23: Strategic Initiatives Update

    Strategic Initiatives Update • Warehouse Evolution Program – Consolidated DC Melbourne (Tullamarine) using latest technology – building handover Feb 21, operational April 21 with transition over the balance of 2021 • Retail Point of Sale System – new point of sale system in Autobarn complete • Digit

  24. Slide 24: Our New Melbourne DC

    Our New Melbourne DC Update • Practical completion of building Feb 21 • First business to move into April 21 Key features • Strong investment in ‘state of the art’ technology • 50,000m2 warehouse • Goods to Person technology • Substantial capacity • Tier 1 Warehouse Management System • Consolidate 1

  25. Slide 25: 4. FY21 Trading Update / Outlook

    1. H1 FY21 Results 2. H1 FY21 Result Details 3. Strategy Update 4. FY21 Trading Update / Outlook 25

  26. Slide 26: FY21 Trading Update / Outlook

    FY21 Trading Update / Outlook • As previously announced, Andrew Harrison yesterday retired from the Board after 7 years service. Andrew was a founding Director at Bapcor’s IPO in April 2014 • Margie Haseltine, who joined Bapcor in May 2016, has taken over as Chair • In January 2021 business performa

  27. Slide 27: Appendix

    Appendix 27

  28. Slide 28: AASB 16 impact on EBITDA percentages

    AASB 16 impact on EBITDA percentages The following table details EBITDA as a percentage of revenue for each of the operating segments and the consolidated Bapcor group both inclusive and exclusive of the AASB16 Leases accounting standard: EBITDA Inclusive of AASB16 EBITDA Exclusive of AASB16 Dec-20

  29. Slide 29: Reconciliations

    Reconciliations The tables1 below table reconcile the pro-forma results to the statutory results for H1 FY21 and H1 FY20. Notes: 1. These tables are subject to rounding. 2. NPAT attributable to members of Bapcor Limited. 3. The Victorian DC Consolidation relates to the significant items incurred in

  30. Slide 30: 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 by segment: $Ms Dec-20 Jun-20 Statutory Intersegment Acquisition Pro-forma Statutory Intersegment Acquisition

  31. Slide 31: Reconciliations cont.

    Reconciliations cont. The following table reconciles the movements in provision for slow moving inventory: Detailed Strategy 31

  32. Slide 32: 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

  33. Slide 33: Bapcor

    Bsapcor Bapcor Bapcor Bapcor Bapcor Bapcor TRADE Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions

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