BAPCOR LIMITED — AGM Information 2017

Nov 1, 2017

2017 Annual General Meeting CEO Presentation

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. 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 Bapcor’s current expectations, estimates and projections about the industry in which Bapcor 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 Bapcor, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward- looking statements. Bapcor cautions investors and potential investors not to place undue reliance on these forward-looking statements, which reflect the view of Bapcor 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. Bapcor 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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	1	FY2017 Results
	2	Strategy Update
	3	FY2018 Trading Update, Outlook &
		Investment Highlights
	4	Q&A
“Australasia’s leading provider of aftermarket parts, accessories, equipment and services”

FY2017 Headline Results

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REVENUE NPAT EPS
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• Excellent growth in all measures

• All business segments recorded solid growth

• Hellaby acquisition, integration and optimisation exceeded expectations

• All acquisitions performing well

Note: Non-core operations are Resource Services Group and Footwear.

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FY2017 – Financial Highlights

$ million	FY2016	FY2017	Variance
Continuing Operations
Revenue	685.6	1,013.6	47.8%
Gross Margin %	44.2%	45.7%	1.5pp
EBITDA – pro-forma	77.0	117.4	52.4%
EBITDA%	11.2%	11.6%	0.4pp
NPAT – pro-forma	43.6	65.8	50.9%
NPAT – statutory	43.6	53.7	23.3%
EPS (cps) – pro-forma	17.89	24.40	36.4%
Total Bapcor (including non-core)
NPAT – pro-forma	43.6	71.5	64.2%
EPS (cps) – pro-forma EPS(cps)- statutory	17.89 17.89	26.54 23.76	48.4% 32.8%
Dividend (cps)	11.0	13.0	18.2%

Notes:

1. Hellaby Holdings Ltd included from January 2017

2. FY2017 pro-forma results excludes Hellaby related acquisition and financing costs

3. Refer www.Bapcor.com.au FY2017 Results Presentation of 23 Aug 2017 for reconciliation of statutory to pro-forma NPAT and EPS)

4. Non-core operations are Hellaby Footwear and Resource Services Group

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FY2017 – Operational Highlights

• Another transformational year

• Improved performance in every business segment - sales, margin & earnings

• 23 new stores across Australia

• 15 Burson Trade

• 8 Autobarn

• Now 31 Autobarn company stores following 7 buy backs

• Metcash Auto optimisation program delivered at top end of target

• Successful acquisition of Hellaby Holdings in New Zealand

• Auto is a quality asset, with further upside

  • Excellent performance in second half

• Implemented divestment program for non-core businesses

• Significant optimisation program underway following Hellaby acquisition

• Retail franchisee loyalty programs developed

• Warehouse Evolution Program underway

• Progress on every aspect of the five year strategic plan

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Business Segment Contribution

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Total Auto Revenue
FY2017 FY2016
14.9%
28.5% 23.2%
50.4%
24.8%
60.3%
21.8%
21.1%
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Total Auto EBITDA
FY2017 FY2016
11.5%
23.2%
26.1%
55.0%
62.4%
21.8%
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A “Trade” focused business generating circa 80% of sales/earnings

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Business Segment Results

	Revenue	EBITDA
	FY2017 FY2016 % Change	FY2017 FY2016 % Change
Aust Trade	465.1 419.1 11%	63.3 51.8 22%
Wholseale	212.7 103.4 106%	22.9 9.5 141%
Retail & Service	221.0 172.3 28%	28.2 21.6 30%
Group/Elims	(31.9) (9.2)	(10.1) (5.9)
Subtotal	866.9 685.6 26%	104.3 77.0 35%
Hellaby Auto	146.7	15.1
Hellaby HO		(2.0)
Total Auto	1,013.6 685.6 48%	117.4 77.0 52%
Non Core	196.6	16.8
Total Group	1,210.2 685.6 77%	134.2 77.0 74%

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Summary of Key Performance Indicators

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Revenue * EBITDA * NPAT
65.8
1,013.6 117.4
43.6
685.6 77.0
306.3 341.6 375.3 30.2 36.0 41.5 16.0 19.3 23.1
FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017
FY2017 vs FY2016 ($ millions)
Total Up 47.8% to 1,013.6 Up 52.4% to 117.4 Up 50.9% to 65.8
Trade Up 11.0% to 465.1 Up 22.2% to 63.3
Retail & Service Up 28.3% to 221.0 Up 30.3% to 28.2
Specialist Wholesale Up 105.7% to 212.7 Up 141.1% to 22.9
Hellaby Automotive [^] Up to 146.7 Up to 15.1
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* Based on continuing operations only and pro-forma results where appropriate

^ Represents six months results from January 2017

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Summary of Key Performance Indicators

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EPS (cps) * Dividends per share Share price
Interim Final
5.92
24.4 5.52 5.49
4.20
17.9
7.5 3.40
13.6
6.0 2.50
4.7 1.82
5.0 5.5
4.0
APR14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17
FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 listing
  
EPS up 36.4% Dividend of 13.0 cents per Solid share price trend
share, up 18.2% versus since IPO just over 3 years
FY2016
ago
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* Based on continuing operations only and pro-forma results where appropriate0

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1 FY2017 Results

2 Strategy Update FY2018 Trading Update, Outlook & 3 Investment Highlights

4 Q&A

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Aftermarket Supply Chain

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Bapcor businesses participate
Consumer
Service
Trade /
Retail
Resellers
Wholesale
Manufacturers
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Bapcor 5 Year Strategic Targets

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Segment
Contribution
Aus Target
AUS Target
30%
200
Trade focussed Own
Stores
“parts professionals” 161 Brands 22%
50% TRADE
supplying workshops in NZ Relocations NZ Target
NZ Target
Australia & New Zealand & Refurb Target 30%
65 25 Own
Stores Stores
54 1 Brands
#1 or #2 Industry category $A $A
specialists in parts programs 350 55
SPECIALIST AUS Target NZ Target
30% $A 430 $A 70
WHOLESALE
Turnover Turnover
AUS Target Target 35%
Premium Retailer of
200 Own
Automotive Accessories Stores 123 Brands 16%
RETAIL
Supplying the independents: Target Over AUS Target
20% & 200 120
parts, accessories & 4WD
Stores 215 OL Stores 71
SERVICE
Experts at scheduled car AUS Target NZ Target
servicing at affordable prices TBD 139 TBD 26
Bringing automotive Asia Target
ASIA aftermarket parts to Asia TBD
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$A “Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 13 Current actual xx

Optimisation Program – following Hellaby Acquisition

• As announced on 26 July 17

n 26 July 17
Year FY18 FY19 FY20 EBIT benefit Retained HO costs Net benefit	$M
	Low High
	2 3 3 4 3 5
	8 11 1 1
	7 10

Have also eliminated $5M of Hellaby head Office costs

• Intercompany sales, direct and indirect procurement, increased sales, strategic growth, shared services, people development

• Hellaby return including synergies will exceed the original business case

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New Zealand Growth Strategy

• Circa 10 new stores (20% increase)

• Relocate/refurbish 50% of existing stores

• Includes adding showrooms

• Expand product range

• Introduce Capricorn

• Introduce B to B catalogue & Online Sales

• Grow Own brands

• Increase intercompany sourcing

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Warehouse Evolution Project

• Consultants have completed 12 month review

• 3 to 5 year program

• Invest in technology

• Circa $30M to $40M investment in capital and project expenses.

• Will generate annual return of $10M to $15M EBIT by year 5.

Priority

• Transport contracts

• Warehouse management system

• Port splitting

• New warehousing facilities utilising latest technologies

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Potential Industry Disruptors

Online - Amazon

• Given 80% of Bapcor’s business is trade and wholesale – involving high service levels and deep specialised product knowledge, any impact not expected to be significant.

• Retail may have an exposure however expected to be small due to product types, technical advice and fitment.

• Overseas experience has less than 5% market on line in auto accessories.

• Bapcor has online capabilities today – and has the option to join Amazon marketplace.

Electric Vehicles

• Industry has a history of adapting to technology changes

• Well placed in electrical and electronic componentry businesses

• Current car parc has 2% hybrid and electric

• Of 1 million cars sold annually, only 2% electric / hybrid

• 17 million cars on road with average age 12 years

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1 FY2017 Results
2 Strategy Update
FY2018 Trading Update, Outlook &
3
Investment Highlights
4 Q&A
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Non-Core Businesses Divestments

 Footwear – completed

 Contract Resources

• North America – signed

• Rest of world – completed

• TBS – in due diligence

 Proceeds

• Confident of NZ $92 million per June 2017 accounts

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FY2017/18 Trading Update

% Group Sales

• On track for full year forecast of 30% NPAT growth on continuing operations

• Trade

50%

• Aust – sales up circa 7%, same store sales circa 4%

• NZ – sales up circa 7%, same store sales circa 7%

• Specialist Wholesale

30%

• Aust – sales up circa 42% - underlying growth circa 4%

• • Former Hellaby Electrical – sales up circa 10%

• Retail & Service

20%

• Overall sales up circa 8% - driven by new company stores

• • Company stores - sales up circa 40%, same store sales up circa 3.5%

• Other stores – same store sales flat.

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Outlook / Investment Highlights

• Organic, geographic and other strategic growth opportunities

• Store / branch footprint expansion in all segments

• Well placed electrical & electronics componentry for evolving carparc

• Continued margin growth – own brands, volume, warehouse evolution

• Hellaby automotive acquisition exceeding original expectations

• The nature of Bapcor’s business largely protected from on-line disrupters

• Resilient industry with long lead times to adjust to changes in the market

• Strong free cashflow and a solid balance sheet

• 30% NPAT growth in FY18

• Track record of delivering earnings growth and total shareholder return

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Thank You – Q&A

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