BAPCOR LIMITED — Investor Presentation 2018

May 2, 2018

Macquarie Conference May 2018

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Australasia’s leading provider of automotive aftermarket parts, accessories, equipment and services………… that span the supply chain.

• sites 850+

• • # employees 3,700+ • Turnover $1.4b • Market cap $1.6b

A “Trade” focused business generating circa 80% of sales/earnings

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Total Auto Revenue Total Auto EBITDA
FY2017
FY2017
28.5% 23.2%
50.4%
55.0%
21.8%
21.1%
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Bapcor businesses participate
Consumer
Service
Trade /
Retail
Resellers
Wholesale
Manufacturers
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Consistent strategy with specific, clear, measurable targets.

No changes to direction or goals.

We know what we do best and stick with it.

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Segment
Contribution
AUS Target
AUS Target
30%
200
Trade focussed Own
Stores
“parts professionals” 163 Brands 22%
50% TRADE
supplying workshops in NZ Relocations
NZ Target NZ Target
Australia & New Zealand & Refurb Target 30%
65 25 Own
Stores 55 Stores 3 Brands 22%
#1 or #2 Industry category
$A 350 $A 35
specialists in parts programs
SPECIALIST AUS Target NZ Target
30% $A 450 $A 50
WHOLESALE
Turnover Turnover
Premium Retailer of AUS Target Target 35%
200 Own
Automotive Accessories Stores 124 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
TBD TBD
servicing at affordable prices 134 26
Bringing automotive Asia Target
ASIA aftermarket parts to Asia TBD
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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
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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
3.40
7.5
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
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CURRENT STATUS

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DIVESTMENTS / NON-CORE ASSETS

• Completed the non-core asset divestments from Hellaby acquisition

• Footwear and Contract Resources

• Proceeds NZ$99m. Accounts provided NZ$92m

INTEGRATION OF AUTOMOTIVE BUSINESS

• Successfully integrated Hellaby Automotive

• Achieving above business case results

• Still has a lot of potential to develop further

• Opened first new store in NZ

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OVERALL

• Reiterate guidance for full year NPAT – on target

TRADE

• Burson continues to perform strongly

• Same store sales circa 4% YTD

• Gross Margin % holding

• Number of new stores added on target

SPECIALIST WHOLESALE

• Trading solidly, in line with expectations

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NEW ZEALAND

• BNT same store sales continue to be strong

• Margins improving

RETAIL & SERVICE

• Strategy delivering results

• Autobarn same store sales > 2%

• Earnings in line with expectations

• Number of new stores added on target

• Introducing click and deliver

OPTIMISATION PROGRAM

• Delivering strong results, as expected

• Increasing intercompany sales and “own” brands

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ASIA

• First store opens this month

• Five additional stores by December

WAREHOUSE EVOLUTION PROJECT

• Good progress made

• WMS review underway

• Data collation re warehouse specifications

GROUP CONFERENCE

• Just completed conference & expo in Singapore

• Over 900 store managers, franchisees, suppliers, support staff

• Amazing atmosphere showcasing the high potential of the group

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ADDRESSING THE MYTHS

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INVENTORY PROVISION

• Profit is not propped up by release of inventory provision.

• No inventory provision was released to profit in H1;

  • In fact there was an expense to profit and hence an increase in provision.

• Obsolete inventory scrapped (sent to recycling) of $4.8m in H1.

• When any business is acquired Bapcor’s inventory provisioning policy is applied.

• We continue to apply inventory provisioning policy consistently

  • And disclose all movements in reporting.

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On line retailing / Amazon

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

• If and when auto parts introduced, likely to be on 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

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Electric Cars

• 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

• Less than 1 million new cars sold annually

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

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Electric vehicles reach
50% of Car Park – i.e.
2041
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Assumptions:

• With the above assumptions input into the model:

• 100% of new cars sold will be electric by year 20

• Electric vehicles reach 50% of Car Park in 24 years – i.e. 2041

• Drop off rate is 4.0% p.a.

Starting Car Park (Year 0): 18.4m cars Annual growth of total car park: 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”

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