Slide 1: H1 FY2019 Results Presentation
H1 FY2019 Results Presentation
Slide 2: 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 3: Aftermarket Supply Chain
AFTERMARKET SUPPLY CHAIN 1 H1 FY2019 Results 2 H1 FY2019 Result Details 3 Strategy & Trading Update 4 Q&A 3 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 4: H1 FY2019 Headline Results
H1 FY2019 Headline Results 3.2% 8.2% 6.6% 5.9% Revenue EBITDA NPAT EPS Up 3.2% to $636.1M Up 8.2% to $76.0M Up 6.6% to $43.1M Up 5.9% to 15.34 cps (continuing ops) (proforma continuing ops) (proforma continuing ops) (proforma continuing ops) Up 13.2% to $79.4M Up 12.6% to $45.5M Up 3.4% to 16.20 cps
Slide 5: H1 FY2019 Operational Highlights
H1 FY2019 Operational Highlights A record first half result in Revenue, Earnings and EPS, in challenging economic conditions. NPAT growth negatively impacted by 2.5% due to the divestment of TRS on 3 July 2018. The FY18 profit contribution of TRS is expected to be fully offset in H2 FY19 due to
Slide 6: H1 FY2019 Financial Highlights
H1 FY2019 Financial Highlights H1 FY19 H1 FY18 Variance Continuing Operations Revenue $’M 636.1 616.1 3.2% Gross Margin % 47.1% 45.6% 1.5 pp EBITDA – proforma $’M 76.0 70.2 8.2% EBITDA % 11.9% 11.4% 0.6 pp NPAT – proforma $’M 43.1 40.4 6.6% EPS – proforma cps 15.34 14.48 5.9% Total Bapcor (including
Slide 7: Summary of Key Performance Indicators
Summary of Key Performance Indicators 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 share Interim Final 86.
Slide 8: Business Segment Results – continuing operations
Business Segment Results – continuing operations EBITDA % Revenue EBITDA Revenue AUD $’M Proforma H1 FY19 H1 FY18 % Change H1 FY19 H1 FY18 % Change Change Trade 257.4 245.6 4.8% 36.9 34.1 8.2% +0.4 pp Bapcor NZ 79.8 75.3 6.0% 11.1 9.2 21.8% +1.8 pp Bapcor NZ – TRS - 12.9 (100.0%) - 1.3 (100.0%) Spec
Slide 9: Business Summary
Business Summary 1H FY2019 Market Facing Revenue Same store EBITDA NEW H1 Locations Company % Growth Sales Growth % Growth % FY19 31/12/18 Owned % Franchise % Burson Trade 4.8% 2.1% 8.2% 8 178 100% 0% New Zealand 6.0% 4.2%(1) 21.8% 2(1) 79 100% 0% (1) BNT Specialist Wholesale 7.8% NA 11.4% 91 58% 42
Slide 10: Business Segment Contribution to Results
Business Segment Contribution to Results 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% 10 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 11: Burson Trade
Burson Trade Revenue and "Same Store" growth EBITDA % of Sales 14.4% 14.4% 501.6 13.6% 465.1 12.4% 11.8% 419.1 375.3 4.6% 4.6% 4.6% 4.4% 2.1% 230.4 245.6 257.4 185.0 202.9 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 H1 FY2019 EBITDA $M Store numbers 72.1 178 170 63.3 160 145 51.8
Slide 12: Burson Trade
Burson Trade • Revenue and EBITDA growth $’M H1 FY19 H1 FY18 Change • H1 FY19 same store sales growth of 2.1% - below expectations Revenue 257.4 245.6 4.8% • Equipment sales growth continues to be strong EBITDA 36.9 34.1 8.2% • Margin up 0.4pp for the half-year EBITDA % 14.3% 13.9% +0.4 pp • +8 new
Slide 13: Bapcor NZ
Bapcor NZ $’M NZD H1 FY19 H1 FY18 Change • Revenue growth of 4.9% and EBITDA growth of 20.6% Revenue 86.3 82.3 4.9% (excluding TRS from H1 FY18) • Half-year BNT same store sales up 4.2% EBITDA 12.0 10.0 20.6% • Good margin growth of 1.8pp, reflecting optimisation benefits EBITDA % 13.9% 12.1% +1.8 p
Slide 14: Specialist Wholesale
Specialist Wholesale $’M H1 FY19 H1 FY18 Change • Revenue growth of 7.8% and EBITDA growth of 11.4% Revenue 196.3 182.1 7.8% • Benefitting from increase in group intercompany sales of 37% • Strong growth in the electrical/engine management businesses EBITDA 20.5 18.4 11.4% • Large pipeline of projec
Slide 15: Retail & Service
Retail & Service $’M H1 FY19 H1 FY18 Change • Growth in Autobarn company stores driving revenue growth of 8.8% Revenue 135.0 124.1 8.8% • Autobarn same store sales of approx. 4% for company owned EBITDA 14.2 14.2 0.0% and 0.2% for franchise stores EBITDA % 10.5% 11.4% -0.9 pp • EBITDA flat year on y
Slide 16: H1 FY2019 Result Details
1 H1 FY2019 Results 2 H1 FY2019 Result Details 3 Strategy & Trading Update 4 Q&A 16 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 17: Summary Income Statement
Summary Income Statement Revenue growth of 3.2%; excluding divested TRS business was 5.5% Pro-forma, $’M H1 FY19 H1 FY18 Change Continuing Operations Same Store sales growth Burson Trade 2.1% Revenue 636.1 616.1 3.2% BNT 4.2% Gross Profit 299.5 281.0 6.6% Autobarn company stores 4.0% Margi
Slide 18: Summary Cash Flows
Summary Cash Flows $’M H1 FY19 EBITDA – Proforma 76.0 Lower cash conversion of 59.5% due to higher inventory holdings Operating cash flow before finance, transaction and tax costs 45.2 Cash conversion 59.5% Inventory reflects investment in acquisitions, network Financing costs (5.8) growth, new
Slide 19: Summary Balance Sheet
Summary Balance Sheet Net Debt/Cash $’M H1 FY19 FY18 Net debt at December 2018 is $350.9M Cash 53.5 40.2 Represents annualised leverage ratio of 2.1X on a twelve month EBITDA basis Trade and other receivables 150.7 146.8 Higher debt due to inventory holdings as well as Inventories 328.4 287.
Slide 20: Strategy & Trading Update
1 H1 FY2019 Results 2 H1 FY2019 Result Details 3 Strategy & Trading Update 4 Q&A 20 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 21: Continued growth of the Australian Car Parc…
Continued growth of the Australian Car Parc… Estimated 19.5m registered vehicles at the end of 2018, an increase of 2% on 2017 Average age of vehicles stable at 11 years New vehicle sales in 2018 were 1.15m, down 3% on 2017 and ending four years of YoY growth 60% of new vehicle sales were in
Slide 22: Bapcor 5 Year Strategic Targets
Bapcor 5 Year Strategic Targets NO CHANGE TO GROWTH STRATEGY 22 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 23: Major Projects Underway
Major Projects Underway Retail “Point of Sale” system – replace legacy system Upgrade in central computer infrastructure - improved reliability and security Warehouse Management System – most warehouses do not have one Improves efficiency and accuracy. Warehouse Evolution – 3 to 4 year pro
Slide 24: Bapcor Thailand
Bapcor Thailand • Now operating 3 stores in Bangkok district • A further 3 new stores planned in H2 FY19 • Stores making positive progress in new market dynamics • Good relationships being established with a significant chains presenting good growth opportunities as we grow more scale • As with any
Slide 25: Trading Update
Trading Update Bapcor expect the general level of market softness to continue for the remainder of FY19. Bapcor are forecasting an increase NPAT of circa 9% above FY18 proforma NPAT. This guidance delivers a record full year result in Revenue, Earnings and EPS, however is at the low end of previous
Slide 26: Australasia's leading provider of aftermarket parts, accessories, equipment and services
26 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 27: Q&A
1 H1 FY2019 Results 2 H1 FY2019 Result Details 3 Strategy & Trading Update 4 Q&A 27 ”Australasia’s leading provider of aftermarket parts, accessories, equipment and services”
Slide 28: Appendix – Statutory to Proforma Reconciliation
Appendix – Statutory to Proforma Reconciliation Statutory EBITDA to Pro-forma EBITDA reconciliation $Ms H1 FY19 H1 FY18 Statutory EBITDA per segment note 81.6 71.4 Intersegment EBITDA per segment note - 1.3 - 1.0 Acquisition costs per segment note - 0.8 - 0.2 Pro-forma adjustments - 3.5 - Pro-forma