BAPCOR LIMITED — Annual Report 2022

Aug 16, 2022

FY22 FULL YEAR FINANCIAL RESULTS PRESENTATION

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17 AUGUST 2022

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WE ARE ASIA PACIFIC’S LEADING PROVIDER OF VEHICLE PARTS, ACCESSORIES, EQUIPMENT, SERVICE AND SOLUTIONS

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c.$1.8B
FY22 REVENUE
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1,100+
LOCATIONS IN AUSTRALIA,
NEW ZEALAND AND
THAILAND
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5,000+ TEAM MEMBERS

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Australia's leading trade focused
automotive parts distributor
Industry leaders in specialist product
categories
Premium parts and accessories retailer
including automotive service centres
Services New Zealand’s trade, service
and specialist wholesale automotive
segments
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Trusted provider of premium-quality
aftermarket parts, accessories and
workshop equipment
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Bapcor - A Group of Specialist businesses in a resilient industry

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REVENUE DIVERSIFICATION & RESILIENCE

• Long term stability underpinned by Bapcor’s diversified business strategy

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Revenue by Segment
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Revenue by Type

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9% New Zealand
10% Discretionary – Retail
10% Non discretionary – Retail [1]
36% Specialist
Wholesale
20% Retail 80% Non discretionary – Trade & Wholesale
35% Trade
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~80% Trade based business with ~90% non discretionary spend

Notes:

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1. Retail non-discretionary considered to be products required to be able to maintain and operate a vehicle safely (batteries, electrical, oils/additives, spare parts).

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BAPCOR HEALTH AND SAFETY

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One Bapcor Safety Culture Safety Performance - TRIFR Covid-Update
• 31 30.13 •
Business impact from both Covid and regular
Establishment of Bapcor Zero Harm plan with a
Improving,
29 influenza still ongoing
focus on high-risk activities and controls
but more to do
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•
Weekly monitoring of restrictions continues,
Cascaded into segment-wide safety plans,
24.84
25 with most restrictions lifted (including for
underpinned by roll-out of Bapcor wide IT
23 overseas travel)
platform solution
20.58
21
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Focus on Lead Indicators Bapcor introduced both a paid pandemic leave
19
policy as well as a flexible work policy to allow
• Investing in resource and uplifting capability
17
team members to react to changing
•
Embedded into Bapcor’s Wellbeing and 15
2020 2021 2022 circumstances, e.g. work from home
Diversity programs
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Health and Safety of our team members is paramount

Notes:

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1. TRIFR calculated based on injuries per million hours worked

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FY22 – FINANCIAL HIGHLIGHTS

• FY22 delivered record results, in line with guidance:

• Revenue up 4.6% to $1.84B

• Pro Forma NPAT up 1.2% to $131.6M

• EBITDA Margin maintained at 15.8%

• All segments delivered Revenue growth and increased own brand sales proportions year-on-year

• Final dividend of 11.5 cents per share, bringing FY22 dividend to 21.5 cents per share, up 7.5%, with a payout ratio of 55.4%

• Two year growth of 26% for revenue and 48% for NPAT, reflecting strong underlying fundamentals of automotive aftermarket

• Significant improvement in 2H22 with Revenue up ~5% and NPAT up ~16% versus 1H22

• o Strong second half performance offset the impact of lockdowns in 1H22 and demonstrates the resilience of Bapcor’s business

• Priority for FY23 is to continue to perform and transform simultaneously and make Bapcor “Better than Before”

• o FY23 commenced with strong sales momentum in July

Record Profit Delivered

Notes:

9

1. All P&L KPIs on pro-forma basis unless indicated otherwise (see reconciliation in appendix)

FY22 – OPERATIONAL HIGHLIGHTS

• Global supply chains continued to be disrupted with ordering lead times increased to unprecedented levels

• Bapcor’s inventory availability is a key competitive advantage

• Prudent procurement strategies applied to mitigate global supply chain risks, but leading to temporarily elevated inventory levels at year end

• Bapcor’s inventory is non-perishable / durable, ie it does not easily become obsolete over time

• Victorian Distribution Centre (DC) operational and on track to achieve steady state performance and benefits, Queensland DC progressing with savings expected in the second half of FY24

• Continued expansion of store network with 31 new stores across all segments

• Reviewed our workplace culture with an increased focus on enhancing diversity, safety, health and wellbeing as well as living the Bapcor Values

• Ongoing investment made to further improve critical capabilities, particularly in supply chain and technology

• Strengthened management team with new Chief Financial Officer, Chief Technology Officer and EGM - Supply Chain

Uplifting capability across the Group

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FY22 - KEY PERFORMANCE INDICATORS

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REVENUE EBITDA EBIT
$1,842M $292M $206M
4.6% increase 4.3% increase 2.5% increase
25.9% increase 34.3% increase 42.4% increase
NPAT EPS DIVIDEND
(Full year)
$132M 38.8 cents
21.5 cps
1.2% increase 1.2% increase
48.3% increase 28.3% increase 7.5% increase
RETURN ON CASH NET LEVERAGE
INVESTED CAPITAL CONVERSION RATIO
10.6% 63.6% 1.2x
versus 11.6% in FY21 versus 74.3% in FY21 up from 0.7x at 30 June 21
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• FY22 record Pro Forma NPAT of $131.6M in line with guidance, with revenue and profit growth year-on-year • Increased FY22 dividend of 21.5 cents per share, up 7.5%, with a FY22 payout ratio of 55.4%

• Cash conversion impacted by global supply chain disruption and prudent inventory management to ensure inventory availability

• Debt facilities and maturity profile provides Bapcor with financial flexibility to pursue acquisition opportunities and invest in growth

Notes:

1. All P&L KPIs on pro-forma basis unless indicated otherwise (see reconciliation in appendix)

2. ROIC calculated based on Pro Forma EBIT less Adjusted Taxes / Net Debt + Equity

Vs FY21

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Vs FY20
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1. Net leverage ratio = pre-AASB 16 net debt / pre-AASB 16 EBITDA (see reconciliation in appendix)

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BAPCOR TRADE

Revenue EBITDA $686M $115M +4.9% vs FY21 +0.2% vs FY21 +21.2% vs FY20 +19.9% vs FY20

EBITDA margin Burson Stores 16.8% 210

-78 bps vs FY21 -18 bps vs FY20

+10

Own brand % 33.4% 29.1% at 30 June 21

Same store sales +2.7%

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Trade continued to grow both Revenue and EBITDA in FY22

• EBITDA margin impacted by product mix and proportion of Precision sales

• Trading result growth of 10.6% in 2H22 compared to 1H22, offsetting covid impacts and supply chain disruption

• Network expansion continued with 10 new branches and acquisition of Blacktown Auto Spares (two independently branded locations in Sydney)

• Precision Automotive Equipment strong performance driven by industry leading brands and national presence for workshop design, fitout and equipment

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Acquisition: Blacktown Auto Spares

New Store: Wangara, WA New Store: Preston, VIC

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BAPCOR SPECIALIST WHOLESALE

Revenue $699M +9.8% vs FY21 +38.1% vs FY20

EBITDA $102M +16.1% vs FY21 +63.1% vs FY20

EBITDA margin 14.6% +79 bps vs FY21 +223 bps vs FY20

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Strong performance by Specialist Wholesale delivering Revenue growth of 9.8% and EBITDA growth of 16.1%, supported by increased own brand penetration

• Continued network expansion in Commercial Vehicle and Electrical businesses with 14 new branches opened

• CVG Light (WANO) operations impacted by business rebranding, supply chain challenges, labour availability and retention challenges. Plans in place to protect business operations and drive growth for CVG Light going forward

Own brand % 55.3% 53.3% at 30 June 21

Locations[1] 168 +14 vs FY21

• Truckline celebrated 70 years of serving the Australian automotive aftermarket

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Wholesale Own Brands at Burson Managers Trade Show Truckline 70 year anniversary
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Roadsafe rebrand

Notes:

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1. Excludes Opposite Lock locations as now reported in Retail

BAPCOR RETAIL

Revenue EBITDA $394M $67M +0.4% vs FY21 -0.6% vs FY21 +28.3% vs FY20 +21.5% vs FY20

EBITDA margin Own brand % 16.9% 33.5% -17 bps vs FY21 32.7% at 30 June 21 -95bps vs FY20

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Locations [1] Same store sales
Autobarn 136 Autobarn -3.4%
+3
Autopro & Autopro & -0.8%
94
Sprint Sprint
-10
Midas & 108 Midas +4.6%
ABS
+4
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• Retail consolidated growth from prior years with sales up 28.3% and EBITDA up 21.5% compared with FY20

• Positive same store sales growth in 2H22 of +2.7% for Autobarn and +2.0% for Autopro • EBITDA margin reduction is due to conversion of franchise stores to company stores[2]

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Ongoing network expansion with seven new stores opened and finalisation of Autopro / Sprint integration resulting in reduction of 10 locations

• New online and CRM systems launched to strengthen the customer journey • Continued focus on own brands through Rough Country, Chicane and Viking Force

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New Store: Autopro Hastings

New Store: Autobarn Brendale

Notes:

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1. Excludes brands with majority of Independents and franchisee locations, such as CarParts and Opposite Lock

2. Franchise store revenue only includes franchisee fees and therefore leads to higher EBITDA margin

BAPCOR NEW ZEALAND

Revenue EBITDA $171M $33M +0.6% vs FY21 +0.7% vs FY21 +9.4% vs FY20 +22.1% vs FY20

Locations[1] Trade 76 EBITDA margin No change 19.2% SWG 12 +2 bps vs FY21 No change +199 bps vs FY20 Other 131 -2 Same store sales Own brand %[2] +0.2% 40.7% Trade -2.1% 40.0% at 30 June 21

Same store sales +0.2% Trade -2.1% SWG +10.5%

• New Zealand increased revenue and EBITDA despite extensive periods of Covid disruption totalling ~125 days during 1H22

• Strong performance in the Precision Equipment business with sales up 57%

• HCB expansion through Battery Town Marine, expanded footprint and the Battery Hub B2C initiative

• Despite major Covid impacts, team engagement metrics all increased on the back of “Blue Army” programme and the Community Grants Giveback scheme

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Notes:

1. Includes Trade (e.g. BNT, Autolign), Specialist Wholesale, Battery Town and Shock Shop locations 2. Own brand relates to trade and restated from FY21.

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BAPCOR ASIA

Thailand

• Thailand has been heavily impacted by Covid throughout the

Tye Soon

• Bapcor owns a 25% equity stake in Tye Soon, a listed Singapore entity

period, with reduced number of vehicles on the road

• May and June saw the economy reopen and trading performance begin to return to normal levels

• One new store was opened during the period, located in Siracha, the first location outside Bangkok

• Now operating six stores and a sourcing office

• Established in 1933, Tye Soon is a leading independent automotive parts distributor in Southeast Asia

• Includes wholesale distribution businesses in Hong Kong, Singapore and Indonesia

• Recently released half-year results demonstrate good operational and financial performance

• Group turnover increased by 9.3% to SGD$124.2M and NPAT increased by 39.3% to SGD$3.0M

• Growth in core Southeast Asian markets such as Singapore (5.1%), South Korea (24.2%) and Malaysia (34.7%), all in local currency terms

Notes:

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1. All Tye Soon figures are presented in Singapore Dollars (SGD), on 100% level (Bapcor owns 25% stake of the issued equity) and in comparison to prior year

SIGNIFICANT IMPROVEMENT IN PERFORMANCE IN 2H22

Revenue Growth1

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1H22 2H22 FY22
Trade 2.8% 6.8% 4.9%
Specalist Wholesale 7.4% 12.1% 9.8%
Retail -5.4% 7.1% 0.4%
New Zealand 0.5% 0.6% 0.6%
Bapcor 1.8% 7.4% 4.6%
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Strong revenue and EBITDA growth in 2H22

• All segments showing positive like-for-like growth in 2H22, reflecting the resilience of Bapcor’s business

EBITDA Growth1

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1H22 2H22 FY22
Trade -9.0% 9.5% 0.2%
Specalist Wholesale 4.3% 28.3% 16.1%
Retail -15.7% 21.6% -0.6%
New Zealand 0.5% 0.9% 0.7%
Bapcor -5.8% 15.3% 4.3%
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• Outperformance in 2H22 offsetting lockdown impacts and supply chain disruption in 1H22

• Supported by improvements in performance of Victorian Distribution Centre

Like for Like Sales Growth1

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1H22 2H22 FY22
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Trade	1.1%	4.1%	2.7%
Retail - Autobarn	-8.6%	2.7%	-3.4%
Retail - Autopro & Sprint	-3.3%	2.0%	-0.8%
New Zealand	-1.6%	2.0%	0.2%

Strong rebound in second half

Notes:

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1. Growth rates compared to prior corresponding period (e.g. 1H22 vs 1H21)

SUPPLY CHAIN – VICTORIAN DISTRIBUTION CENTRE

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• Supply chain capability remains core competence for Bapcor to safeguard inventory availability as a key competitive advantage and mitigate global supply chain risks

• Operationalisation of Bapcor’s supply chain strategy through network of state-of-theart distribution centres, commencing with facility in Victoria

• Victorian DC had a significant ramp-up and improvement in 2H22, on track to achieve steady-state performance with emergency fill rate of >98% in last quarter and full realisation of targeted opex savings of $10M expected in FY23

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SUPPLY CHAIN - QUEENSLAND DISTRIBUTION CENTRE

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• Queensland Distribution Centre construction on track

• Foundation slabs for the Goods to Person system, Dangerous Goods Room and the Manual Handling Equipment Room have been laid

• Completed build will feature state-of-the-art Goods to People system and the latest in Warehouse Management Systems

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• Queensland Distribution Centre will consolidate seven existing warehouses in the Greater Brisbane area targeting steady-state annual EBITDA benefits of $4M-$6M during the second half of FY24

• Lessons learnt from Victorian Distribution Centre incorporated to support construction, commissioning and ramp-up

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SUMMARY INCOME STATEMENT

$M	FY22	**FY21 **	% change
REVENUE EBITDA	1,841.9 291.5	1,761.7 279.5	4.6% 4.3%
Depreciation and amortisation EBIT	(85.7) 205.8	(78.7) 200.8	8.9% 2.5%
Finance costs Profit before tax	(19.3) 186.5	(15.2) 185.6	27.6% 0.5%
Income tax expense Non-controlling interest	(55.0) 0.2	(55.8) 0.3	(1.4%) (33.8%)
NPAT	131.6	130.1	1.2%
DC consolidations	(8.4)	(9.9)	(14.9%)
Tye Soon investment impairment Tax adjustment	0.0 2.5	(4.4) 3.0	(100.0%) (14.9%)
NPAT - statutory	125.8	118.8	5.9%
Key performance indicators
EBITDA margin % ROIC %	15.8% 10.6%	15.9% 11.6%	-4bps -103bps
Basic EPS pro forma (cents)	38.8	38.3	1.2%

• Revenue growth of 4.6%, benefitting from strength in automotive aftermarket • Delivered on guidance with FY22 Pro forma NPAT of $131.6M, with stronger second half normalising Covid-impacts in 1H22 • Stable EBITDA and EBIT margins, reflective of focus on category & pricing strategies as well as cost management • Planned and ongoing investment in technology and distribution centres leading to increases in depreciation and amortization • Higher finance costs due to increases in interest rates as well as higher debt levels in order to mitigate global supply chain disruption risk

Notes:

1. All P&L KPIs on pro-forma basis unless indicated otherwise (see reconciliation in appendix)

2. Statutory D&A for FY22 of $88.8M vs. FY21 of $85.4M

3. ROIC calculated based on Pro Forma EBIT less Adjusted Taxes / Net Debt + Equity

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SUMMARY CASH FLOW

$M	FY22	FY21	•	Cash conversion impacted by ongoing investment into inventory to mitigate
EBITDA	291.5	279.5
Operating cash flow before finance, transaction and tax costs	185.3	207.8		global supply chain disruption risks; expected to normalize in FY23
Cash conversion %	63.6%	74.3%
Financing costs Transaction / restructuring costs	(7.4) (6.3)	(7.8) (1.0)	•	Bapcor’s prudent financial position allowed business acquisitions, network
Tax paid	(57.5)	(47.0)
Operating cash flows	114.2	151.9		expansion and other organic growth capital expenditure as well as ongoing
Network expansion Maintenance capex	(27.0) (30.6)	(25.4) (27.9)		investment in enhanced distribution capabilities, particularly Victorian DC
Dividends paid	(71.3)	(62.8)
Finance lease costs Other	(70.0) 0.9	(61.1) (1.0)	•	Increase in shareholder returns reflected in FY22 dividend payments of $71M,
Cash generated pre-acquisitions, major capex, deferred payments DC consolidation capex	(83.8) (24.8)	(26.3) (19.7)		up 13.5% from FY21
Business acquisitions	(7.0)	(14.1)
Proceeds from sale of assets Net Cash Movement	13.7 (101.9)	0.0 (60.1)	•	Transaction / restructuring costs of $6.3m due to Victorian DC transition costs
Opening cash on hand FX adjustment on opening balances	39.6 (0.5)	126.3 (1.1)	•	Proceeds from sale of assets of $13.7M relates to the sale of assets to Australia
Borrowing proceeds / (repayments) Net cash movement	143.0 (101.9)	(25.5) (60.1)		Pacific Airports (Melbourne) Pty Ltd as part of Victorian DC project
Closing cash on hand	80.2	39.6

Notes:

1. All P&L KPIs on pro-forma basis unless indicated otherwise (see reconciliation in appendix)

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SUMMARY BALANCE SHEET

$M	30-Jun-22	30-Jun-21
Cash	80.2	39.6
Trade and other receivables	209.8	193.1
Inventories PP&E	538.7 106.9	447.1 100.0
Other assets Total assets	1,055.9 1,991.6	1,009.4 1,789.2
Trade and other payables Borrowings	236.6 346.7	243.2 204.2
Lease liabilities Other liabilities	253.0 63.0	226.3 72.3
Total liabilities Net assets	899.3 1,092.3	746.0 1,043.2
Key performance indicators Average NWC as % sales	22.2%	17.4%
Average inventory as % sales	26.8%	23.0%
Pro Forma Net Debt Leverage ratio	262.0 1.2x	164.1 0.7x

• Pro forma net debt at 30 June 2022 of $262.0M (June 2021: $164.1M), with increase mainly driven by elevated inventory levels

• Leverage ratio of 1.2x remains well within debt capacity

• Temporarily elevated level of inventories reflecting global supply chain disruptions, prudent operational supply strategies, business acquisitions, new stores and investment in own brand product programs

• Inventory levels to normalize in FY23, subject to global supply chain risks • No material change in debtor and creditor days

• Debt facilities and maturity profile provides Bapcor with financial flexibility to pursue acquisition opportunities and invest in growth

Notes:

1. All P&L KPIs on pro-forma basis unless indicated otherwise (see reconciliation in appendix)

2. Net leverage ratio = pre-AASB 16 net debt / pre-AASB 16 EBITDA (see reconciliation in appendix)

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DIVIDENDS

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Dividends (cps)
25
21.5
20.0
20
17.5
17.0
15.5
13.0 11.5
15
11.0
11.0
9.5
9.5
8.7 8.5
10
7.5
6.0
4.7
5 10.0
9.0
7.0 7.5 8.0
5.0 5.5
4.0
0
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Final Interim
Dividend Dividend
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•

Fully franked final dividend of 11.5 cents per share

• Dividends declared for FY22 increased to 21.5 cents per share, up 7.5% year-on-year

• FY22 payout ratio of 55.4%

• Record date: 31 August 2022

• Payment date: 16 September 2022

• Dividend reinvestment plan remains suspended for FY22 final dividend

• Shares on issue of 339.4M unchanged from 31 December 2021

Notes:

1. The graph above reflects issued dividends for the full year (interim plus final)

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WORKPLACE CULTURE – FOCUS ON TEAM MEMBERS & CUSTOMERS

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EMPOWER THE FRONT LINE
TODAY THE FUTURE
CORPORATE LEADERSHIP CUSTOMERS
Front Line Team Members
Supervisors/2IC’s
GMs
Store Managers
Lead Teams
Support Teams
Support Teams
Lead Teams
Store Managers
GMs
Supervisors/2IC’s
Front Line Team Members
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CORPORATE LEADERSHIP
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BAPCOR VALUES
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•

Bapcor’s employees are at the heart and soul of our business and focusing on improving our culture remains a priority

• In FY22, Bapcor has finalised a workplace culture review:

o Confirmed strong awareness and identification with the Bapcor values and generally employees expressed positive views about their teammates, their leaders and expected standards of workplace behavior

o Issues identified around individual behaviors, some people leaders’ effectiveness needs attention and development and Bapcor’s complaint management process is a concern to some team members

Team members – Heart and Soul of Bapcor

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WORKPLACE CULTURE REVIEW – OUTCOMES AND ACTION

• Initiatives focused on the Bapcor’s Leadership Capability Framework in light of the review:

o A relentless focus on living the Bapcor Values as a central task of Bapcor’s extended Leadership Team o Translating Bapcor’s Values, which are succinct and clear, into actual workplace behavior o People Leaders and Team Member development in relation to acceptable professional standards of conduct in the workplace o Launched “Ignite”, our women’s leadership development program

o A greater focus on diversity and inclusion and mechanisms to achieve it o A review and overhaul of the Complaint Management System, including developing a Consequence Management Framework o Implemented paid parental leave, paid pandemic leave policy (including paid super contributions) and flexible working arrangements policy

Committed to ensuring Bapcor is a great place to work for all team members

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THE OPPORTUNITY BEFORE US

A more sustainable future focused business that can:

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Deliver even more Unleash the power Drive value for for our customers of our people shareholders

Maintain our absolute focus on the customer

Serve additional customer needs over time

“Bapcor Way“ Realise efficiencies of scale Learning and development Collaborating across the value chain Growth pathways across the business Smart analytics

MAKING BAPCOR “BETTER THAN BEFORE”

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Phase 3: Delivery

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Phase 2: Commitment
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TIMELINE:

• Phase 1: Diagnostics (underway)

• Phase 2: Detailed cost and benefits profile per initiative

Better than Before

Phase 1: Diagnostics

• Phase 3: Delivery—ramping-up thereafter

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THE ROAD AHEAD –

“BETTER THAN BEFORE” : BAPCOR’S STRATEGIC TRANSFORMATION

Better Than Before: Sustainable Transformation

• Workstreams consistent with strategic intent communicated during Bapcor’s recent investor presentation

• Focus on maintaining operational performance alongside Better than Before transformation

• Further details about The Road Ahead— Better than Before will be provided at an Investor day to be held on 22[nd] November 2022

SIMPLICITY PROFITABILITY EFFICIENCY > Make it easier > Pricing & Category > Distribution Capability > Unleash the power Management > Return-based Investment > Procurement > IT & Technology > Labour & Inventory > Org design and > Property Management processes > Smart cost > Growth

TEAM MEMBERS CUSTOMERS SUPPLIERS

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BAPCOR FUNDAMENTALS

• Our business operates in a resilient industry and benefits from a rational marketplace

• We expect continued tailwinds from positive macroeconomic market fundamentals:

• Growing population

• Ageing and growing car parc

• Increase in kilometres driven

• Bapcor continues to strengthen its market position

• Bapcor maintains the ability to pass through input cost pressure to protect our margins

• We have further growth and efficiency opportunities within our control

34

OUTLOOK AND STRATEGY

• Strong performance in FY22 and a good start into FY23 demonstrate resilience of Bapcor’s operating model

• Priority for FY23 is to improve operational efficiency and progress strategic initiatives to make Bapcor “Better than Before”

• Bapcor expects a solid underlying[1] trading performance in FY23, subject to market conditions:

• Trading will continue to benefit from positive fundamentals of the vehicle aftermarket

• Currently elevated working capital levels expected to reduce during FY23

• Enhanced distribution capabilities with Victorian DC targeted to achieve steady-state performance and good progress on construction of Queensland DC

• Ongoing focus on workplace culture and the Bapcor team

• Strategically, work has commenced to make Bapcor “Better than Before” which will enable sustainable growth for both the mid and long-term

  1. Excludes costs/benefits associated with “Better than Before”

Notes:

35

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36

RECONCILIATIONS

Statutory to Pro Forma P&L

		FY22	Consolidated
$M	Statutory DC Consolidation3		Tye Soon4	Tax5	Pro-Forma
Revenue	1,841.9				1,841.9
EBITDA D&A EBIT	286.2 (88.8) 197.4	5.3 3.1 8.4			291.5 (85.7) 205.8
Finance Cost	(19.3)				(19.3)
Profit before tax Inome tax expense Non-controlling interest	178.1 (52.5) 0.2	8.4		(2.5)	186.5 (55.0) 0.2
NPAT2	125.8	8.4		(2.5)	131.6
Weighted average number of ordinaryshares	339.4				339.4
Earnings per share(cps)	37.1	2.5	0.0	(0.7)	38.8

The table reconciles the pro forma results to the statutory results:

1. These tables are subject to rounding

2. NPAT attributable to members of Bapcor Limited

3. The Distribution Centre (‘DC’) consolidations item relates to the significant transition items incurred in relation to the Victorian and Queensland Distribution Centres

4. The investment impairment relates to the 30 June 2021 markto-market revaluation of the investment in Tye Soon Ltd

5. The tax adjustment reflects the tax effect of the above adjustment based on local effective tax rates.

		FY21	Consolidated
$M	Statutory DC Consolidation3		Tye Soon4	Tax5	Pro-Forma
Revenue	1,761.7				1,761.7
EBITDA	271.9	3.2	4.4		279.5
D&A	(85.4)	6.7			(78.7)
EBIT	186.6	9.9	4.4		200.8
Finance Cost	(15.2)				(15.2)
Profit before tax	171.3	9.9	4.4		185.6
Inome tax expense	(52.9)			(3.0)	(55.8)
Non-controlling interest	0.3				0.3
NPAT2	118.8	9.9	4.4	(3.0)	130.1
Weighted average number of ordinaryshares	339.4				339.4
Earnings per share(cps)	35.0	2.9	1.3	(0.9)	38.3

37

RECONCILIATIONS

The following tables reconcile statutory to pro forma net debt, statutory EBITDA to pre-AASB16 EBITDA and the Net Leverage calculation

$M	$M	segment Consolidated FY22 FY21 286.2 271.9 5.3 7.6 291.5 279.5 (68.4) (61.9) (0.5) 3.1 222.6 220.7	$M	Consolidated
				FY22 FY21
Statutory EBITDA Proforma EBITDA adjustments Proforma EBITDA AASB-16 adjustment Share-based payment expense adjustment			Pro-forma Net Debt (A) EBITDA pre-AASB 16 (B)	262.0 164.1 222.6 220.7
			Net Leverage (A) / (B)	1.18x 0.74x
Proforma EBITDApre-AASB 16
		FY21

The following table shows Revenue by segment and reconciles the statutory to pro forma EBITDA by segment

38

DEBT FACILITIES AND MATURITY PROFILE

• Debt facilities and maturity profile provides Bapcor with financial flexibility to pursue acquisition opportunities and invest in growth

$262.0M

$136.1M

Pro forma net debt Undrawn committed facilities

Committed facility	Maturity	Facility amount	As at 30-Jun-22	As at 30-Jun-22
			Drawn	Undrawn
5 year tranche Jul-2024 200.0 200.0 0.0 3 year tranche (refinanced) Jul-2025 150.0 18.0 132.0 7 year tranche Jul-2026 134.1 130.0 4.1
Total 484.1 348.0 136.1
Credit metrics 30-Jun-22 30-Jun-21 Net leverage ratio 1.18x 0.74x FCCR 3.6x 4.1x Interest cover 27.4x 28.0x

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2.9 years 1.2x
Average remaining tenor Net leverage ratio
Debt maturity profile ($’M)
250.0
0.0
200.0
150.0
4.1
100.0 200.0
132.0
130.0
50.0
18.0
0.0
Jul-24 Jul-25 Jul-26
Drawn Undrawn
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Notes:

1. Total facilities available at 30 June 2022 was $520M. The amount presented as available above excludes $35.9M of facility which relates to bank overdraft $25M, credit cards $1.1M and bank guarantees $9.8M

2. Net leverage ratio = pre-AASB 16 net debt / pre-AASB 16 EBITDA (see reconciliation in appendix)

3. FCCR (fixed cover charge ratio) = pre-AASB 16 EBITDA plus rent / Interest plus rent

4. Interest cover = pre-AASB 16 EBITDA / Interest

39

BAPCOR VALUES

• Our Values are at the center of everything we do and they will continue be embedded into our processes

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40

WE ARE RESPONSIBLE AND COMMITTED

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Positively impact Environmental our community sustainability

• Engage stakeholders and support the communities in which we operate

• Aspire to be net carbon neutral

• Efficiently use resources

• Every Bapcor location supports at least two local community groups

• Optimise our fleet

• Environmental benefits from the Victorian DC – to be replicated in Queensland

• Streamlined waste and recycling initiatives

• Continued contribution to Australia reforestation projects

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Ethical supply chain/procurement

• Ethical sourcing

• Forge strong supplier relationships

• Enhance transparency in our supply chain through use of supplier self-assessment and/or independent audits

• Continued developments and improvements to our Modern Slavery Framework

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Good governance – supporting and developing our people

• Uphold our values and code of conduct

• Enhance the health, safety, training and development of our team members

• Foster a diverse, engaging and inclusive workplace

• Focus on four key areas of diversity – gender, age, disability & ethnicity

• Pay fair share of tax in all jurisdictions

ESG AND SUSTAINABILITY COMMITMENT WITH ASPIRATIONS TO BE NET CARBON NEUTRAL

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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Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions