Bapcor Ltd · ASX:BAP
Bapcor — Shareholder Meeting (November 2019)
22 slides from Bapcor's shareholder meeting presentation, Nov 1, 2019
Slide 1: 2019 Annual General Meeting CEO Presentation
2019 Annual General Meeting CEO Presentation
Slide 2: Aftermarket Supply Chain
Aftermarket Supply Chain 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 2
Slide 3: Bapcor at a Glance
Bapcor at a Glance Revenue $1.3 Billion EBITDA: Net Debt < 2.0 X EBITDA $165 Million Interest Cover >10.0 X NPAT $94 Million Locations > 950 Market Cap ~ $2.0 Billion Employees > 4,500 3
Slide 4: Over 950 locations across Australia & NZ
Over 950 locations across Australia & NZ 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 8 43 116 10 53 25 SA ACT 98 7 3 79
Slide 5: Leadership Team
Leadership Team CEO Darryl Abotomey Specialist Wholesale [aM Specialist Wholesale Teel Strategic Mechanical Engine Management pha Development Mat Cooper ‘Steve Drummy " vacant Auto Electrical Logisties spree Heer Burson Auto Parts ‘Autobarn Lie emetouiee Finance eNtrTaTP || Steering & PAT s ° =Cooti
Slide 6: Business Segment Contribution
Business Segment Contribution Revenue EBITDA Trade focused 84% Notes: 1. Trade includes Trade and Bapcor NZ segments 1 1 6
Slide 7: FY2019 Headline Results
FY2019 Headline Results Record results in FY2019 on all key measures. Revenue EBITDA NPAT EPS Up 4.8% to Up 9.8% to Up 9.0% to Up 8.0% to $1,297M $164.6M $94.3M 33.45cps (continuing ops) (proforma continuing ops) (proforma continuing ops) (proforma continuing ops) Up 6.9% Up 11.7% Up 11.2% Up 10.3%
Slide 8: FY2019 – Financial Highlights
FY2019 – Financial Highlights FY2019 FY2018 Variance Continuing Operations1 Revenue $’M 1,296.6 1,236.7 4.8% Gross Margin % 46.9% 46.0% 0.9 pp EBITDA – proforma $’M 164.6 150.0 9.8% EBITDA % 12.7% 12.1% 0.6 pp NPAT – proforma $’M 94.3 86.5 9.0% EPS – proforma cps 33.45 30.97 8.0% Dividend cps 17.0 1
Slide 9: FY2019 – Operational Highlights
FY2019 – Operational Highlights • FY2019 result in line with guidance • Result reflects resilience to market conditions • Major segments of Burson Trade, Bapcor New Zealand and Specialist Wholesale all recorded solid growth • Retail segment challenged in H2 due to market conditions and high proporti
Slide 10: Segment Results – continuing operations
Segment Results – continuing operations Revenue EBITDA EBITDA % Revenue AUD $’M proforma FY2019 FY2018 % Change FY2019 FY2018 % Change FY2019 FY2018 Change Trade 524.5 501.6 4.6% 78.2 72.1 8.5% 14.9% 14.4% +0.5 pp Bapcor NZ 165.0 153.6 7.4% 22.9 20.1 13.8% 13.9% 13.1% +0.8 pp Bapcor NZ – TRS1 - 24.3
Slide 11: Summary of Key Performance Indicators
Summary of Key Performance Indicators Revenue* EPS (cps)* NPAT* Dividends per share Notes: * Based on proforma continuing operations where appropriate 11
Slide 12: Core Values
Core Values aPCOLr Bapcor Our Values jf We give adamn... We are in it together... We do the right thing... We care about what we do We're all part of the Bapcor We are open, honest and are proud ofhow we do _ family. We support each end respectful. it. We are passionate and _ other, include everyone
Slide 13: Environmental, Social & Governance (ESG): FY19 Highlights
Environmental, Social & Governance (ESG): FY19 Highlights Developing our ESG Strategy Established a sustainability Integrated sustainability risks Achieved our FY19 objectives. governance process at Board level within our risk management Targets set for FY20 and beyond framework Ethical Supply
Slide 14: 5 Year Strategy
5 Year Strategy Trade focussed “parts professionals” supplying workshops in 230 78 25 35% Australia & New Zealand Ws toe ge NZ Relocation Own brand Stores Stores Refurb Target Target 57% Segment Contribution Now 181 Now 58 Now 6 Now 24% _ . #1 or #2 Industry category specialists A$600m A$50m 40 55%
Slide 15: Strategy Summary
Strategy Summary No change to targets – consistent, specific, measurable targets. Significant growth still to come. • Grow sales • Organic (circa 2% to 3% pa) • Footprint expansion - Burson 10-12 stores pa - Retail up to 10 stores pa - NZ 5 stores pa • Margin • Procurement / buying initiatives • Pri
Slide 16: Continued growth of the Australian Car Parc
Continued growth of the Australian Car Parc… 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 vehicle sales were in t
Slide 17: Bapcor Thailand
Bapcor Thailand • Now operating 5 stores in Bangkok district • A procurement office • Stores making positive progress in new market dynamics • Good relationships being established with significant chains presenting good growth opportunities as we grow more scale • As with any start-up operation in a
Slide 18: Strategic Initiatives Update
Strategic Initiatives Update • Warehouse Evolution Program – feasibility and detailed planning reaching conclusion with more detailed announcement expected within the next two months • Warehouse Management System – First location expected to go live in November 2019 • Point of Sale System Retail – s
Slide 19: Commercial Vehicle Group Expansion
Commercial Vehicle Group Expansion • Bapcor have signed agreements to purchase Truckline and Diesel Drive • Truckline is a heavy commercial parts business with 22 locations and revenue of approximately $100M • Diesel Drive specialises in the sale of Japanese commercial spare parts in NSW with revenu
Slide 20: FY2020 Trading Update / Outlook
FY2020 Trading Update / Outlook • Market fundamentals and appropriate opportunities continue to drive profit growth; • YTD trading update • Selling price increases occurring in all segments, predominately reflecting currency fluctuation / devaluation • Trade segment same store sales more in line wit
Slide 21: Questions
SPCOr QUESTIONS Australasia's leading provider of aftermarket parts, accessories, equipment and services 21
Slide 22: 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