Slide 1: Bapcor Acquisition of Hellaby – Optimisation Benefits Presentation
Bapcor Limited For personal use only (ASX: BAP) ASX Release 26th July 2017 Bapcor Acquisition of Hellaby – Optimisation Benefits Presentation Attached is a document that will be presented at the Bapcor investor briefing on 26 July 2017 at 10.30am as previously announced. Ends For further information
Slide 2: Acquisition of Hellaby Holdings – Optimisation Program
Investor Conference Call Presentation. Acquisition of Hellaby Holdings – For personal use only Optimisation Program 10.30 am, 26th July 2017
Slide 3: 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 4: Contents of Presentation
Contents of Presentation For personal use only 1 Hellaby Holdings Head Office Costs 2 Bapcor Optimisation Program – synergy benefits Note: all numbers are AUD “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 3
Slide 5: Hellaby Holdings Head Office Costs
For personal use only 1 Hellaby Holdings Head Office Costs 2 Bapcor Optimisation Program – synergy benefits “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 4
Slide 6: Hellaby Holdings Group Office Costs
Hellaby Holdings Group Office Costs For personal use only • Hellaby Holding Ltd group office costs were approx. $6m to $7m per year • Over the last six months as Bapcor has transitioned Hellaby businesses into the Bapcor group. The head office costs have been progressively reduced. • The Hellaby gro
Slide 7: Bapcor Optimisation Program – synergy benefits
For personal use only 1 Hellaby Holdings Head Office Costs 2 Bapcor Optimisation Program – synergy benefits “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 6
Slide 8: Optimisation Program Process
Optimisation Program Process For personal use only • In assessing major acquisition opportunities, Bapcor has traditionally not assessed any material amounts of synergies into the returns to justify the acquisition. Announcements of expected returns in acquisitions exclude any material synergy benef
Slide 9: Optimisation Program Process (continued)
Optimisation Program Process (continued) For personal use only • Each project has been allocated to be led by one of the Group Leadership Team (“GLT”). • Business units are now working through delivering each project • Some projects are reasonably straightforward • Some projects will be implemented
Slide 10: Optimisation Benefits - Summary Categories
Optimisation Benefits - Summary Categories For personal use only # Project / Area 1 Intercompany Sourcing / product substitution 2 Direct Procurement / Buy Better 3 Freight Negotiation 4 Indirect Procurement 5 Increased End User Sales – range expansion 6 Increased Direct Sourcing / home brand 7 Stra
Slide 11: Estimated Identified EBIT Benefits
Estimated Identified EBIT Benefits For personal use only Year Low High FY18 $2m $3m FY19 $3m $4m FY20 $3m $5m Total EBIT benefit $8m $11m Less retained HO costs $1m $1m Net EBIT benefit $7m $10m “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 10
Slide 12: Optimisation Benefits
Optimisation Benefits For personal use only • Bapcor had indicated during the acquisition it expected earnings per share from the acquisition of the Hellaby automotive business to be in low double digit on a proforma annual basis. • The optimisation benefits are in addition to the returns previously
Slide 13: Other matters
Other matters For personal use only • Bapcor will announce its FY17 results at 2.30pm on Wednesday 23rd August 2017. • The process to divest non core assets is underway – announcements will be made at an appropriate time. “Australasia’s leading provider of aftermarket parts, accessories, equipment a
Slide 14: Thank You
For personal use only Thank You “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 13