BAPCOR LIMITED — Investor Presentation 2017

Aug 22, 2017

FY2017 Results 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.

“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 2

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1
FY2017 Results
2 FY2017 Result Details
3 Strategy Update
4
FY2018 Outlook
5
Q&A
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“Australasia’s leading provider of aftermarket parts, accessories, equipment and services”

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1
FY2017 Results
2 FY2017 Result Details
3 Strategy Update
4
FY2018 Outlook
5
Q&A
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“Australasia’s leading provider of aftermarket parts, accessories, equipment and services”

FY2017 Headline Results

REVENUE

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Up 48% to
$1,014M
(continuing ops)
Up 77% (including
discontinued ops)
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NPAT

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Up 50.9% to
$65.8M
(proforma continuing
ops)
Up 64.2% to
$71.5M
(proforma including
discontinued ops)
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EPS

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U p 36%
(proforma continuing
ops)
U p 48%
(proforma including
discontinued ops)
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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: Discontinued operations are Resource Services Group and Footwear which are being actively marketed and are at various stages through a potential divestment program.

“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 5

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

• 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

“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 6

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 discontinued operations)
NPAT –pro-forma	43.6	71.5	64.2%
EPS(cps)–pro-forma	17.89	26.54	48.4%
Dividend(cps)	11.0	13.0	18.2%

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Notes:

1. Hellaby Holdings Ltd included from January 2017

2. FY2017 pro-forma results excludes Hellaby related acquisition and financing costs (refer appendix for reconciliation of statutory to pro-forma NPAT)

3. Discontinued operations are Hellaby Footwear and Resource Services Group

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FY2017 – Actual Results versus Bapcor Guidance

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NPAT Guidance
Actual
$ million Low High proforma
NPAT
Bapcor excluding Hellaby 57.0 59.0 59.5
Hellaby 8.0 12.0 12.0
Total 65.0 71.0 71.5
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• Proforma NPAT includes discontinued operations and removal of one off costs related to the acquisition of Hellaby. Refer to appendix for further details.

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“Australasia’s leading provider of aftermarket parts, accessories, equipment and services”

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

“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 10

Burson Trade

Revenue and "Same Store" growth

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465.1
419.1
375.3
341.6
306.3
284.3
4.6% 4.6% 4.6%
3.9%
2.1%
1.4%
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
$M Same Store growth %
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• Revenue up 11.0%

 Same store sales growth 4.6%

 Positive growth in every state/region  Customer loyalty program “Alliance” has made good progress

Store numbers

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160
145
130
116
105
100
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
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• 160 stores - up 15

 WA now at 10 stores with approx. $18M annualised revenue in 2 years

 Main national competitor growing its dedicated trade network

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Burson Trade

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EBITDA $M
63.3
51.8
44.3
35.9
30.3
22.7
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
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 EBITDA up 22.2%

 Due to increased sales and margin improvement

EBITDA % of Sales

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13.6%
12.4%
11.8%
10.5%
9.9%
8.0%
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
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 Increased 1.2pp

• Optimisation benefits achieved

 People development continues to be a key priority  26 development courses  Over 600 attendees

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Retail and Service

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Revenue $M
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221.0
172.3
FY2016 FY2017
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EBITDA $M
28.2
21.6
FY2016 FY2017
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• Revenue up 28.3% - includes one additional month from former Metcash Auto

 EBITDA up 30.3%

• Additional 1 month in FY17 vs. FY16 from former Metcash Auto

 EBITDA % sales increased 0.2pp  Increased revenue and margin

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Retail and Service – business units

• Same store sales up 2%

• National campaigns up 10%

• Click and collect up 45%

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122
114
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• Single largest sales day in history June 2017

• New loyalty program

• 122 stores, up 8

  • 31 company stores +16 (added 9 greenfield and 7 acquisitions)

  • 25% stores company owned; 75% franchised

• Highest greenfield growth in 20 years

• Autopro Catalogue

• catalogue program expanded by 5%

• Service

• highest sales in over 10 years

• highest average store sales in history

• Optimisation program – benefits delivered

• Implemented retail franchisee incentive programs

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Retail & Service – Number of Stores

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2016 2017
400
385
124
125
18
14
Service
103 Autopro
82
Sprint
4 Autobarn
2
33
34 5
5
91
99
31
15
Franchise Stores: 360 Franchise Stores: 331
Company Owned Stores : 40 Company Owned Stores : 54
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• Includes 12 company owned stores in transition

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Specialist Wholesale (excluding Hellaby)

Revenue up 105.7%

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
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Revenue $M

212.7 Specialist Wholesale has grown
significantly with the purchase of;
 Bearing Wholesalers (acquired March 2016)
103.4  Roadsafe (acquired August 2016)
 Baxters (acquired August 2016)
 MTQ (acquired November 2016)

All business units achieved revenue and
FY2016 FY2017
profit growth
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• Bearing Wholesalers (acquired March 2016)

• Roadsafe (acquired August 2016)

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EBITDA $M
22.9

EBITDA up 141%

9.5 Good progress in growing level of
intercompany sales
FY2016 FY2017
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“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 16

– 6 months from Jan to June 2017 Hellaby Automotive

$ millions	Revenue	EBITDA
Trade	61.8 7.9
Specialist Wholesale	84.9 7.1
Total	146.7 15.1

• Revenue +16.0% on H2 FY2016, and +16.5% on FY2016

• EBITDA +27.6% on H2 FY2016, and +16.7% on FY2016

• Quality asset with further upside

NZ Trade

• Same store sales growth of 8%

• Expansion into commercial parts

Specialist Wholesale

• Same store sales growth of 7%

• New sites in Bunbury and Port Macquarie

• Improving profitability

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– 6 months from Jan to June 2017 Hellaby – Non Core Assets

$ millions	Revenue	Proforma EBITDA
Resource Services 131.9 11.0
Footwear 64.7 5.8
Total 196.6 16.8

 Good performance in Footwear and TBS component of Resource Services

 Divestment program underway

 Good return on assets

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1
FY2017 Results
2 FY2017 Result Details
3 Strategy Update
4
FY2018 Outlook
5
Q&A
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“Australasia’s leading provider of aftermarket parts, accessories, equipment and services”

Summary Income Statement

 Revenue growth of 47.8% delivered by

 Same Store sales growth  Burson Trade  BNT  Autobarn  Gross margin % up 1.5 percentage points Segment Growth Burson Trade 11.0% Retail & Service 28.3% Specialist Wholesale 105.7% Hellaby Auto Elims	% of total revenue growth 14.0% 14.9% 33.3% 44.8% (7.0%)
	4.6% 8.0% 2.0% 100.0%

• GM% is a continuous focus across all segments

• Reflects the benefits of the optimisation projects

• Trade up 1.2pp compared to FY2016 and up 0.6pp on H1 FY2017. Retail & Service up 1.2pp. GM% in Specialist Wholesale up 3.6pp due to acquisitions and improved margins at AAD

• CODB as a % of sales up 1.1 percentage points

• Increase in CODB mainly reflects the higher CODB in Specialist Wholesale business acquisitions, and the increase in retail company stores

• Trade CODB% consistent with prior year

• Includes additional corporate management costs consistent with larger business.

• Finance costs up due to Hellaby acquisition funding

• Proforma NPAT from continuing operations up 50.9%

• EPS from continuing operations up 36.4%

	Pro-forma, $ million	FY2017	FY2016	Change
	Continuing Operations
	Revenue	1,013.6	685.6	47.8%
	Gross Profit	463.3	303.0	52.9%
	Margin (%)	45.7%	44.2%	1.5
	CODB	(345.9)	(225.9)	53.1%
	CODB (%)	(34.1%)	(33.0%)	(1.1)
	EBITDA EBITDA (%)	117.4 11.6%	77.0 11.2%	52.4% 0.4
	Depreciation and Amortisation	(13.5)	(10.1)	34.5%
	EBIT	103.9	67.0	55.1%
	Finance Costs Profit Before Tax Income Tax Expense	(9.6) 94.3 (28.5)	(4.9) 62.1 (18.5)	97.4% 51.8% 53.9%
	NPAT - continuing	65.8	43.6	50.9%
	NPAT (%) EPS(1) (CPS)	6.5% 24.40	6.4% 17.89	0.1 36.4%
	NPAT – discontinued	5.7	-	100%
	NPAT - all	71.5	43.6	64.2%

Note: 1. EPS is based on the TERP adjusted weighted number of shares on issue during the year as per accounting standard AASB-133

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Business Segment Contribution to Results

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$ millions Revenue EBITDA EBITDA % of Revenue
FY17 FY16 % Change FY17 FY16 % Change FY17 FY16 Change
Continuing operations
Trade 465.1 419.1 11.0% 63.3 51.8 22.2% 13.6% 12.4% 1.2
Retail & Service 221.0 172.3 28.3% 28.2 21.6 30.3% 12.8% 12.6% 0.2
Specialist Wholesale 212.7 103.4 105.7% 22.9 9.5 141.1% 10.8% 9.2% 1.6
Bapcor HO / Elims 1 (31.9) (9.2) (10.1) (5.9) 31.8% 63.7%
Bapcor exc Hellaby 866.9 685.6 26.4% 104.3 77.1 35.3% 12.0% 11.2% 0.8
Hellaby Auto 146.7 15.1 10.3%
Hellaby HO (2.0)
Total Automotive 1,013.6 685.6 47.8% 117.4 77.1 52.3% 11.6% 11.2% 0.4
Discontinued operations
Resource Services 131.9 11.0 8.4%
Footwear 64.7 5.8 9.0%
Total Bapcor Group 1,210.2 685.6 76.5% 134.2 77.1 74.1% 11.1% 11.2% (0.1)
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1. Included in EBITDA is elimination of profit in intercompany stock of $3.1M and $1.4M in FY17 and FY16 respectively.

Intercompany sales eliminations represent the eliminations of sales between business segments.

Bapcor’s reporting of intercompany sales eliminations in the previous financial year included some intrasegment sales eliminations which have been restated for FY2017 reporting.

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Total Auto Revenue Total Auto EBITDA
FY2017 FY2016 FY2017 FY2016
14.9% 11.5%
23.2%
28.5%
50.4% 26.1%
24.8% 55.0%
60.3% 62.4%
21.8%
21.1%
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Summary Cash Flows

 Strong cash conversion of 102.5%

• Working capital excluding impact of acquisitions and new stores favourable due to improved payables management

• Working capital levels of new acquisitions has resulted in a total working capital % of sales increase of 2.5% compared to FY2016 to 16.7%

 Capex and Acquisitions

• Capex mainly reflects investment in new stores, purchase of motor vehicles, IT development and front of store refurbs

• Other business acquisitions includes Baxters, Roadsafe and MTQ

• Net cash generated is positive $50.1M excluding business acquisitions and dividends

 Hellaby transaction

• Cashflow includes proceeds related to capital raising for Hellaby acquisition less purchase consideration and debt acquired and transaction costs paid

$ million	FY2017
EBITDA – Proforma Change in working capital Payments for new store inventory Operating cash flow before finance, transaction and tax costs	117.4 (8.5) 11.5
	120.4
Cash conversion	102.5%
Financing costs inc. refinancing costs Transaction costs – non Hellaby Tax paid Operating cash flows	(11.9) (0.5) (30.0)
	78.0
Store acquisition andgreenfields	(16.1)
Business acquisitions – net of cash – non Hellaby	(45.1)
Capital expenditure(excludingnew stores)	(11.7)
Dividend paid Other	(25.5) (0.2)
Cash generated excluding Hellaby cash flows	(20.5)

Hellaby transaction cash flows Capital raising Business acquisition inc. debt acquired	181.3 (414.2)
Transaction costs paid	(12.6)
Net cash outflow from Hellaby transaction	(245.5)
Opening cash on hand	22.4
Borrowing drawdowns	283.4
Net cash movement	(266.0)
Closing cash on hand

Summary Balance SheetShee

• Net Debt/Cash

• Net debt at June 2017 is $381.9M[(1)] .

• Represents annualised leverage ratio of less than 2.5X on an annualised EBITDA basis

• New $500M 3 & 5 year term facility in June 2017

 Resource Services and Footwear

• Classified as held for sale at NZ$92M

• Dividends

• Final dividend declared for FY2017 of 7.5 cents per share fully franked, bringing total dividend for FY2017 to 13.0 cents per share, up 18.2%. This represents 56.7% of statutory NPAT.

• Record date 31 August 2017

• Pay date 29 September 2017

• Dividend reinvestment plan will continue for the FY2017 final dividend

Notes:

$ million	Jun 2017	Jun 2016
Cash	39.8	22.4
Trade and Other Receivables	136.1	87.9
Inventories	261.6	163.0
PP&E	49.8	36.2
Deferred Tax Assets	18.7	7.2
Intangible Assets	647.8	362.2
Assets Held For Sale	178.9	-
Other Assets	4.1	4.5
Total Assets	1,336.7	683.4
Trade and Other Payables	174.8	121.5
Tax Liabilities	3.5	6.2
Provisions	65.5	39.5
Borrowings	429.7	148.2
Liabilities Held For Sale	70.8	-
Other	2.4	1.8
Total Liabilities	746.7	317.2
Net Assets	590.0	366.2

1. Net debt is based on borrowings less cash - $389.9M, adding back $2.5M of prepaid borrowing fees which is included in the borrowings amount, adding in financial derivative liabilities of $2.4M and removing cash held by the discontinued operations of $13.0M

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1 FY2017 Results 2 FY2017 Result Details 3 Strategy Update 4 FY2018 Outlook 5 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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Frequently Asked Questions

On line retailing (including Amazon)

• Amazon likely to focus on electronics, health & beauty, kitchen & home, toys, in initial stages

• If and when Amazon introduce auto parts, likely to be on consumer products that do not require professional fitment or advice

• Bapcor’s trade based businesses relatively protected due to high service level

• Substantial portion of Autobarn’s customer base categorised DIFM – plays into Autobarn’s high customer service model

• May be an opportunity for Bapcor businesses

“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 27

High Risk Categories to Internet Trading

Indicative – Amazon Internet Sales to USA	Indicative – Amazon Internet Sales to USA	Indicative – Amazon Internet Sales to USA
1	Kindle Edition	9%
2	Health and Beauty	6%
3	Electronics	3%
4	Kitchen & Home	3%
5	Grocery	2%
6	Personal Computers	2%
7	Office Products	2%
8	Wireless Phone Accessories	2%
9	Paperback Books	2%
10	Tools & Home Improvements	1%

Ebay Australia Sales Online	Ebay Australia Sales Online	Ebay Australia Sales Online
1	Phones & Accessories	57%
2	Toys, Hobbies	10%
3	Computers/Tablets & Networking	7%
4	Vehicle Parts & Accessories*	5%
5	Home Entertainment	5%
6	Home & Garden	5%
7	Electronics	3%
8	Health & Beauty	2%
9	Pet Supplies	2%
10	Clothing, Shoes, Accessories	2%

• 75% Lights & Floodlights

Amazon FY16 sales US$136bill

• 10% Battery Chargers

(1) Source : The Impact of Amazon in Australia – Hitwise Retail Analytics, March 2017

(2) Data based on information from Terapeak.com, Hot Research

“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 28

Frequently Asked Questions

Electric Cars

• Hybrid & electric cars are 2.2% of the Australasian car parc

• Last quarter sales were 1% hybrid & electric

• Bapcor will evolve and adapt to the car parc - as it has historically as cars have changed

 Bapcor well placed to supply electronic components and batteries, especially through its electrical and electronics wholesale businesses.

 Will be many many years for electric cars to reach a significant portion of the car parc

 In context – 18 million cars on road in Australia – average age 12 years

• Approximately 1 million new cars sold annually

• Cars on road continue to grow in line with population growth

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What will be the impact of electric cars? Bapcor’s Australian Car Parc Forecast Model.

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60 100%
Australian Car Parc
90%
50
Electric vehicles reach 80%
50% of Car Parc – i.e.
70%
40 2041
60%
30 50%
40%
20
30%
20%
10
10%
- 0%
2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055 2057 2059 2061 2063 2065
No. of Cars (Millions)
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Years

Electric Car Parc Standard Car Parc % Electric Cars of Total Car Parc

• With the stated assumptions input into the model: • 100% of new cars sold will be electric by year 20 • Electric vehicles reach 50% of Car Parc in 24 years – i.e. 2041

• Drop off rate is 4.0% p.a.

Assumptions: Starting Car Parc (Year 0): 18.4m cars Annual growth of total car parc: 2% New Cars Sold Year 1: 1.1m cars Annual growth of new cars sold: 2% Share of new cars sold as Electric: Y1 – 5% Y2 – 10% Y3 – 15% Y4 – 20% Y5 – 25% Y6 – +10% year on year…

“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 30

Optimisation Program – following Hellaby Acquisition

• As announced on 26 July 17

n 26 July 17
Year FY18 FY19 FY20	$M Low High
	2 3 3 4 3 5
EBIT benefit	8 11
Retained HO costs Net benefit	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 now exceed the original business case

“Australasia’s leading provider of aftermarket parts, accessories, equipment and services” | 31

Warehouse Evolution Project

• Consultants have completed 12 month review

• 5 to 7 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 and warehouse management system

• Port splitting

• New warehousing facilities utilising latest technologies

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1
FY2017 Results
2 FY2017 Result Details
3 Strategy Update
4
FY2018 Outlook
5
Q&A
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Outlook

• FY2018 will continue to deliver business and profit growth

• Full year impact of Hellaby Auto and other FY17 acquisitions

• Continued growth in Trade and Retail

• Store footprint expansion in all segments

• Benefits of vertical integration and optimisation program

• FY2018 forecast NPAT from continuing operations consistent with consensus

• Up circa 30% from FY17 proforma NPAT from continuing operations

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Thank You – Q&A

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APPENDIX

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Proforma P&L Reconciliation

Consolidated

			Consolidated
$’M	Notes	2017 Continuing Operations 2017 Discontinued Operations	2017 Total 2016
Statutory NPAT Costs associated with the acquisition of Hellaby Interest adjustment Depreciation and amortisation adjustment Tax adjustment	1 2 3 4	53.7 10.1 15.3 - (0.7) - - (6.4) (2.5) 2.0	63.8 43.6 15.3 - (0.7) - (6.4) - (0.5) -
Pro-forma NPAT		65.8 5.7	71.5 43.6

Notes on pro-forma adjustments:

1. Relates to one off costs incurred during the acquisition of Hellaby. These costs related to professional advisory fees, target defensive costs, finance costs relating to the bridging facility and refinancing, restructuring costs, one time elimination of intercompany profit in stock and other costs.

2. The interest adjustment reflects the additional interest expense that would have been incurred if the Hellaby related capital raising did not occur due to the reduction in borrowings between the time of the capital raising and the payment for Hellaby shares.

3. The depreciation and amortisation adjustment relates to the depreciation and amortisation that would have occurred in the Resource Services and Footwear divisions that was not recorded due to their held for sale status.

4. The tax adjustment reflects the tax effect of the Hellaby transaction costs and the finance, depreciation and amoritsation adjustments based on local effective tax rates.

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FY2017 P&L Additional Information

The following table presents the proforma profit and loss statement by consolidating the discontinued operations into each major profit and loss line

item:

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Discontinued Continuing
$M Bapcor excluding Hellaby Hellaby Auto/HO Operations Operations Total Bapcor Total Bapcor
FY17 FY16 FY17 FY17 Total FY17 FY17 FY16
Revenue 866.9 685.6 146.7 196.6 343.3 1,013.6 1,210.2 685.6
EBITDA 104.3 77.1 13.1 16.9 29.9 117.4 134.2 77.1
EBITDA % 12.0% 11.2% 8.9% 8.6% 8.7% 11.6% 11.1% 11.2%
EBIT 91.7 67.0 12.2 10.5 22.6 103.9 114.3 67.0
EBIT % 10.6% 9.8% 8.3% 5.3% 6.6% 10.2% 9.4% 9.8%
NPAT 59.5 43.6 6.3 5.7 11.9 65.8 71.5 43.6
NPAT % 6.9% 6.4% 4.3% 2.9% 3.5% 6.5% 5.9% 6.4%
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The table to the right shows the H1 and H2 split:

$M	H1	H2	Total
Continuing operations	27.8	37.9	65.8
Discontinued operations	-	5.7	5.7
Total	27.8	43.7	71.5

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FY2017 Cash Flow Reconciliation

The following reconciles the statutory net cash from operating activities per Note 39 of the 30 June 2017 statutory accounts to the cash flows from operating : activities before finance, transaction and tax costs

	$M
Net cash from operating activities (per Note 39)	61.1
Add back:
Payments for new store inventory	11.5
Borrowing costs	9.3
Transaction costs	8.5
Income tax paid	30.0
Cash flows from operating activities before	120.4
finance, transaction and tax costs

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