BAPCOR LIMITED — Capital/Financing Update 2020

Dec 16, 2020

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Bapcor Limited

(ASX: BAP)

ASX Release

17[th] December 2020

Bapcor FY21 Trading Update

On 12[th] October 2020 Bapcor provided a first quarter FY21 trading update which indicated Group Revenue was up 27%.

In what has been an extraordinary twelve months Bapcor feels it is important to keep its shareholders informed on the performance of its business.

Bapcor’s businesses have continued to perform strongly since the October update. For the five months to the end of November Group Revenue is up c.26%, with Net Profit After Tax achieving operating leverage from lower expenses in areas such as travel and other areas of discretionary expenditure, as well as lower interest rates and the contribution from Truckline which was not included in the prior corresponding period (“pcp”).

For the first half of FY21 Bapcor anticipates it will achieve revenue growth of at least 25% over the pcp in FY20, and Net Profit after Tax increase of at least 50% over the pcp in FY20 which was $45.6m.

Market consensus for Bapcor’s full year net profit after tax currently ranges from $110m to $115m, which prima facie does not appear unreasonable. However considering the uncertain economic conditions, we will update on our view of the full year outlook as part of our half year results in February 2021.

Darryl Abotomey, Bapcor’s Chief Executive Officer and Managing Director said “We are very pleased with the strong performance of Bapcor’s businesses. Trade and wholesale represent over 80% of Bapcor’s business, with Retail c. 20%. Historically, trade focussed businesses perform solidly in difficult economic conditions – which is again borne out by Bapcor’s current performance.

In addition the changes that have been implemented in our retail business continue to gain momentum with revenue up c.40% over the pcp. Initiatives include the recently launched new Autobarn store format that is delivering a significant uplift in sales. This is supported by changes in our overall retail “go to market” strategy with improvements in our on-line capabilities, our revitalised catalogues, expanded and exciting new product ranges and continued footprint expansion which are expected to continue to drive above market growth going forward.

The construction of our new Victorian Distribution Centre is progressing well with the building expected to be handed over in February 2021 and the automated picking system operational in the following six months. This is an exciting development that will deliver significant operational benefits.

Bapcor’s team members are doing an amazing job ensuring our customers are able to obtain the parts, accessories and services that are necessary to keep Australian, New Zealand and Thailand vehicles, including cars, light and heavy-duty trucks operating. Bapcor continues to demonstrate that it is a resilient and financially solid business.”

Ends

This announcement was authorised by the Board of Bapcor Limited.

For further information, please contact:

Darryl Abotomey Noel Meehan Managing Director and CEO Chief Financial Officer and Company Secretary +61 419 838 059 +61 3 9914 5555 +61 3 9914 5555

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