Bapcor (BAP) Strategy Update summary

Strategic direction and leadership changes

• Angus McKay appointed as Executive Chair & CEO, with a refreshed executive team to drive cultural and operational change, focusing on performance and outcomes.

• Emphasis on sustainable growth, customer-centricity, and embedding core values and safety commitment across the organization.

• Six strategic imperatives: network optimization, unified supply chain, customer focus, digitalization, store alignment, and business simplification.

• Clearer business unit accountability and fewer, more focused initiatives to avoid past complexity.

• Employee engagement targeted for significant improvement, with transparent communication and leadership stability prioritized.

Market trends and fundamentals

• Australian vehicle parc expected to grow 2% p.a. and New Zealand 1% p.a. from 2025–2028, supporting steady aftermarket demand.

• Average vehicle age remains high (Australia: 11 years, NZ: 14 years), sustaining parts and servicing needs.

• Cost-conscious consumers and vehicle complexity drive price growth and aftermarket shift.

• Market fundamentals remain favorable, with low EV penetration and growing car parks in Australia and New Zealand.

Segment performance and market positioning

• Four business segments: trade (36% revenue), specialist wholesale (36%), retail (20%), and New Zealand (8%).

• Retail segment underperforming, especially in corporate-operated Autobarn stores; franchisees and Midas performing well.

• Retail turnaround focuses on store capability, management, assortment, and customer experience, with no new store additions until the model is optimized.

• Autobarn brand to see investment in store experience, product mix, loyalty program, and pilot of Burson counter in Autobarn stores.

• Wholesale business consolidating warehouses, shifting focus to external customers, eliminating non-value-added internal transactions, and considering divestment of non-core brands.