Bapcor Ltd · ASX:BAP
Bapcor — Investor Day (April 2016)
13 slides from Bapcor's investor day presentation, Apr 19, 2016
Slide 1: Investor Day – Optimisation Projects Update
Investor Day – Optimisation Projects Update 19th April 2016 1 Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by Burson Group Limited (“Burson”) ABN 80 153 199 912 and is general background information about Burson’s activities current at the date of this presentation. The information is given in summary form and does not purport to be complete.
Slide 3: Optimisation Projects Overview
Optimisation Projects Overview • There are 15 Optimisation Projects which will be summarised into 6 for the purpose of this presentation; • Each project is led by a member of the Executive Team; • The projects each have specific goals, deliverables and timeframes; • Not all projects have a defined f
Slide 4: Optimisation project list
# Project / Area 1 Direct Procurement / Buy Better 2 Freight Negotiation 3 Marketing Spend 4 In Direct Procurement / Buy Better 5 Intercompany Sales 6 Product Substitution 7 Price / Margin Optimization 8 Warehouse Optimization 9 Warehouse Productivity 10 Network Development Plan 11 Conversion Compan
Slide 5: Product Procurement
Product Procurement Project Outline: • Negotiation with product suppliers to improve cost of goods purchased, based on size of spend, payment terms, promotional allowances and other areas. • Total spend approx. $400 million. • Created role of GM- Group Procurement. • Initially negotiating with large
Slide 6: Indirect Procurement – including freight, marketing, consultants, other services
Indirect Procurement – including freight, marketing, consultants, other services. Project Outline: • Negotiation with indirect suppliers to improve cost of purchases, based on size of spend, payment terms. • Includes insurance, consultants, accounting, freight, marketing, travel, telephones. IT, mot
Slide 7: Group Support Office / Shared Services / ERP system
Group Support Office / Shared Services/ ERP system Project Outline: • Transition business units onto a common ERP IT platform in ANA. • In the back office finance and administration areas, consider the option of a shared services structure to optimise the efficiency across the group. • Benefits in r
Slide 8: Warehouse Optimisation
Warehouse Optimisation Project Outline: • Review the optimum methods for operating the 16 plus warehouses that the group has, taking account of the various service level requirements of the various market segments the business services. • Total spend approx. $30 million • In the process of appointin
Slide 9: Intercompany Product Sourcing and Sales Optimisation
Intercompany Product Sourcing and Sales Optimisation Project Outline: • Optimise the sourcing of product from within the group’s business unit’s, taking account of customer requirements. • Particularly impacts the direct sourcing and private label. • Changes from sourcing product from external suppl
Slide 10: Network Development
Network Development Project Outline: • Develop strategy for the growth of company owned trade and retail store network. • Identify locations for each store based on criteria developed for optimum stores. • Utilised software to plot the store network against the criteria developed. • Identify the tot
Slide 11: Estimated Identified Benefits
Estimated Identified Benefits Mainly includes benefits of direct procurement, indirect procurement, freight and marketing 11 Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services
Slide 12: Estimated Identified Benefits ($M)
Estimated Identified Benefits Estimated Identified Benefits ($M) 14 Mainly includes 12 benefits of 10 direct 8 procurement, 6 indirect 4 procurement, 2 0 freight and FY16 FY17 FY18 FY19 marketing EBIT benefit Working Capital Benefit FY16 FY17 FY18 FY19 TOTAL EBITDA Benefit $1.0 - $1.5 $5.0 - $7.0 $1
Slide 13: Thank You
Thank You 13 Australasia’s Leading Provider of Aftermarket Parts, Accessories and Services