BAPCOR LIMITED — AGM Information 2014

Oct 27, 2014

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2014 Annual General Meeting

28 October 2014

BURSON FY2014 RESULTS PRESENTATION

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. Information in this presentation, including forecast financial information should not be considered as advice or a recommendation to investors or potential investors and does not take into account investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate.

Persons needing advice should consult their stockbroker, solicitor, accountant or other independent financial advisor.

The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions.

This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law.

Certain statements made in this presentation are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Burson’s current expectations, estimates and projections about the industry in which Burson operates, and beliefs and assumptions. Words such as "anticipates”, "expects”, "intends,", "plans”, "believes”, "seeks”, "estimates”, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Burson, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward- looking statements. Burson cautions investors and potential investors not to place undue reliance on these forward-looking statements, which reflect the view of Burson only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Burson will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.

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Chief Executive Officer’s Presentation 2014 Annual General Meeting

28 October 2014 Darryl Abotomey, Chief Executive Officer Burson Group Limited

BURSON FY2014 RESULTS PRESENTATION

Presentation Contents

1 FY2014 Highlights 2 FY2015 1[st] Quarter Update 3 Strategy and Outlook

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Highlights in FY2014



Successful listing on ASX - a milestone for Burson



Continued store expansion, up net 11 stores to 116

• 8 acquisitions NSW (7) and NT (1)

• 5 greenfields in Vic, NSW and Qld (3)

• Merged 2 stores in Vic and NSW



Focus on customer service foundations

• People development

• Inventory range enhancement

• Systems (on-line ordering and infrastructure)



Direct sourcing of water pumps



Front-of-store enhancements to grow walk in sales

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Financial Highlights in FY2014

	Exceeded Prospectus Forecast
	116 stores – increase of11 stores
	Like for like sales growth of3.9%
	Revenue $342 million –up 11.5%
	Gross marginup 0.8%	In comparison to FY2013
	EBITDA margin 10.5% –up 0.6%
	NPAT $19.4 million –up 21.3%
	Earnings per share– up 21.3%
	Working capital to sales 11%
	Gearing 1.75 X FY14 proforma EBITDA

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Summary of Key Performance Indicators

Store Numbers

Store expansion continues – ahead of prospectus forecast and well positioned to meet or exceed 2015 forecast

Revenue and “Like for Like” growth

Store expansion together with strong like for like sales growth driving revenue growth

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116
105
100
FY2012 FY2013 FY2014
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341.6
306.3
284.3
3.9%
2.1%
1.4%
FY2012 FY2013 FY2014
Revenue ($ million) Like for like growth %
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Gross Profit Margin

Continued improvement reflecting margin improvement initiatives

EBITDA Margin Outcome of growth and improvement initiatives

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43.0%
42.2%
39.4%
FY2012 FY2013 FY2014
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10.5%
9.9%
8.0%
FY2012 FY2013 FY2014
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FY15 - 1[st] Quarter

• Strong start to year; in line with prospectus forecast

• Sales up 9.7% YOY

• Same store sales 4.7%. Competitive environment constraining margin.

• Added 5 stores since June 2014, now 121 stores

• Ipswich (Qld), Innisfail (Qld), Tweed Heads (NSW), McGraths Hill (NSW) and Broadmeadow (NSW)

• Reconfirm FY15 Prospectus Forecast

• NPAT $21.9M

• Dividend FY15 65% of NPAT: H1 ~ 3.5 cents per share and H2 ~ 5.2 cents per share

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Strategy and Outlook

• On track to meet FY2015 prospectus forecast of 124 stores. Currently at 121 stores.

Expand store network

• Continuing to work on a range of acquisition and greenfield developments opportunities across Australia including Vic, NSW, ACT, Qld and WA.

• Brisbane DC lease agreed. Will be operational commencing FY15

• 175 store target by 2019

• Benefit from resilient demand for automotive aftermarket parts distribution

Increase existing store revenue

• Maintain high level of customer service through continued development of people and systems

• Focused on sales from electronic and online platforms, increase “walk-in” store sales, chain workshop sales and inventory range

Increase existing store earnings

• Supplier terms, proportion of parts distributed with Burson’s own brands, and developing direct sourcing relationships

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Thank You

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