Transcript Name of Presentation - Bidvest

The Bidvest Group Limited
Results for the six months ended
December 31 2005
Creating value and building strength
from diversity
Agenda
Introduction
Financial Results
Strategy & Prospects
2
Introduction
Results Summary
Revenue
+21.6% to R38,2bn
Trading income
+18.7% to R1,7bn
Headline earnings
+20.4% to R1,1bn
HEPS
+21.8% to 368,6cps
Cash generated by ops
+59.1% to R936m
DPS
+21.1% to 162cps
Note: IFRS compliant
4
H1 2006 Trading Features
Pleasing overall performance from group
businesses
Strong revenues (volume gains) with trading
margins offset, to some extent, by cost of capacity
increases as well as fuel price increases
Deli XL acquisition substantially bedded down adds 5.5cps with effect from 12/9/05
Substantive progress on underperformers
5
Segments at the Forefront of Performance
Revenue
Trading income (Rm)
+16.8
+17.7
+5.2
+11.3
+8.9
+15.4
+38.7
+19.9
+21.1
+27.7
+18.4
+26.4
+19.9
+28.6
260.2
Bidfreight SA
221.0
144.3
129.7
Bidserv
74.9
64.9
Renfin
286.3
Foodservices Europe
238.8
108.8
85.2
Foodservies Australasia
120.2
95.1
Bid Industrial
290.2
Bid Auto
Rm 0
% ch on
H1 2005
Trading
Income
% ch on
H1 2005
225.6
50
100
150
H1 2005
200
250
H1 2006
300
350
6
Segments Holding Their Own
Revenue
Trading income
Bidcorp
5.6
5.6
105.1
100.0
Caterplus
70.7
70.5
Combined Foods
115.9
107.6
Office Products
79.8
76.6
Bid Paper Plus
Rm 0
20
40
60
H1 2005
80
100
120
% ch on
H1 2005
Trading
Income
% ch on
H1 2005
-0.9
+0.8
+14.2
+5.1
+4.2
+0.3
+9.7
+7.7
+10.3
+4.2
140
H1 2006
7
Action on Underperformers
Dart Line exit announced (at considerable profit)
Volume Distribution France exited
BNS sold to BCX
Further actions underway at Lithotech France
8
Financial Results
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Rm’s
Revenue
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Note: Bidvest has terminated constant currency comparisons. Should the R/£ exchange rate move
materially, constant currency comparisons will be reinstated.
10
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Rm’s
Revenue
Trading Income
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
1 691,5
+18.7
1 425,0
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Pleasing 16% increase excluding Deli XL
11
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
Trading Income
1 691,5
+18.7
1 425,0
Trading margin
4,4%
Trading
margins
H1 2006
Rm’s
Revenue
4,5%
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Pleasing 16% increase excluding Deli XL
Change in profit contribution mix
H1 2005
Offshore*
2.6%
2.8%
Comparative margin negatively affected by innately lower
margin at Deli XL and positively affected by Namsov
Local
5.5%
5.8%
Change in profit contribution mix; cost of capacity increases;
fuel price increases
Group
4.4%
4.5%
*Offshore margins include a R14m loss from Lithotech France (-R15m in H1 2005)
12
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
Trading Income
1 691,5
+18.7
1 425,0
Trading margin
4,4%
4,5%
(164,4)
(131,1)
Rm’s
Revenue
Net finance
expense
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Pleasing 16% increase excluding Deli XL
Change in profit contribution mix
Offshore interest of R41,4m : local interest of R123m; net
debt offshore of R1,1bn : local net debt of = R1,9bn;
largely funding of capex, Deli XL and share buybacks
13
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
Trading Income
1 691,5
+18.7
1 425,0
Trading margin
4,4%
4,5%
Net finance
expense
(164,4)
(131,1)
Offshore interest of R41,4m : local interest of R123m; net
debt offshore of R1,1bn : local net debt of = R1,9bn;
largely funding of capex, Deli XL and share buybacks
Taxation
(420,6)
(379,6)
1% decline in statutory tax rate; no tax relief on sharebased payments
Rm’s
Revenue
Effective tax
rates
H1 2006
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Pleasing 16% increase excluding Deli XL
Change in profit contribution mix
H1 2005
Offshore
24,9%
27,3% Once-off tax relief crystallised by Dart Line sale (+/R7m); avg tax rate of +/-27% going forward - offset, to
some extent, by overcharge on Deli XL tax rate
Local
28,4%
28,7% Excluding capital items & STC
Group
27,4%
28,4%
14
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
Trading Income
1 691,5
+18.7
1 425,0
Trading margin
4,4%
4,5%
Net finance
expense
(164,4)
(131,1)
Offshore interest of R41,4m : local interest of R123m; net
debt offshore of R1,1bn : local net debt of = R1,9bn;
largely funding of capex, Deli XL and share buybacks
Taxation
(420,6)
(379,6)
1% decline in statutory tax rate; no tax relief on sharebased payments
(29,2)
(3,5)
Rm’s
Revenue
Minority int’s
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Pleasing 16% increase excluding Deli XL
Change in profit contribution mix
Improved performance from Namsov
15
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
Trading Income
1 691,5
+18.7
1 425,0
Trading margin
4,4%
4,5%
Net finance
expense
(164,4)
(131,1)
Offshore interest of R41,4m : local interest of R123m; net
debt offshore of R1,1bn : local net debt of = R1,9bn;
largely funding of capex, Deli XL and share buybacks
Taxation
(420,6)
(379,6)
1% decline in statutory tax rate; no tax relief on sharebased payments
(29,2)
(3,5)
Rm’s
Revenue
Minority int’s
Headline
earnings (Rm)
1 104,2
+20.4
917,2
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Pleasing 16% increase excluding Deli XL
Change in profit contribution mix
Improved performance from Namsov
Offshore earnings in H1 2006 of R289,9m (26%) vs
R207,5m (23%) in H1 2005
16
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
Trading Income
1 691,5
+18.7
1 425,0
Trading margin
4,4%
4,5%
Net finance
expense
(164,4)
(131,1)
Offshore interest of R41,4m : local interest of R123m; net
debt offshore of R1,1bn : local net debt of = R1,9bn;
largely funding of capex, Deli XL and share buybacks
Taxation
(420,6)
(379,6)
1% decline in statutory tax rate; no tax relief on sharebased payments
(29,2)
(3,5)
Rm’s
Revenue
Minority int’s
Headline
earnings (Rm)
HEPS (cents)
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Pleasing 16% increase excluding Deli XL
Change in profit contribution mix
Improved performance from Namsov
1 104,2
+20.4
917,2
Offshore earnings in H1 2006 of R289,9m (26%) vs
R207,5m (23%) in H1 2005
368,6
+21.8
302,7
+4cps from shares bought back in prior period (R532m
cost for 7,5m shares )
17
Consolidated Income Statement
Six months ended December 31 2005
Avg
R/£ 11.56
IFRS
Avg
R/£ 11.43
Restated ito IFRS
H1
2006
% ch vs
H1 2005
H1
2005
38 240,1
+21.6
31 447,1
Trading Income
1 691,5
+18.7
1 425,0
Trading margin
4,4%
4,5%
Net finance
expense
(164,4)
(131,1)
Offshore interest of R41,4m : local interest of R123m; net
debt offshore of R1,1bn : local net debt of = R1,9bn;
largely funding of capex, Deli XL and share buybacks
Taxation
(420,6)
(379,6)
1% decline in statutory tax rate; no tax relief on sharebased payments
(29,2)
(3,5)
Rm’s
Revenue
Minority int’s
Headline
earnings (Rm)
COMMENTARY
1st time contribution of R2.15bn by Deli XL (3,5 months)
Pleasing 16% increase excluding Deli XL
Change in profit contribution mix
Improved performance from Namsov
1 104,2
+20.4
917,2
Offshore earnings in H1 2006 of R289,9m (26%) vs
R207,5m (23%) in H1 2005
HEPS (cents)
368,6
+21.8
302,7
+4cps from shares bought back in prior period (R532m
cost for 7,5m shares )
DPS
162,0
+21.1
133,8
HEPS cover = 2.3x
18
Consolidated Cash Flow Statement
Rm’s
H1 2006
H1 2005
2 166,1
1 779,3
Movements in working capital
(1 229,8)
(1 190,9)
Cash generated by operations
936,4
588,4
(1 889,1)
(1 375,6)
1 118,9
(18,1)
EBITDA
Cash effects of investment activities
Cash effects of financing activities
Concerted working capital management across the group; still room for
improvement
Cash effect of investment activities includes R1,1bn for the acquisition of Deli XL
Gearing capacity:
 Ample room to gear up - current interest cover of 11x
 R1bn due from Bidvest options by year-end
 R650m received from the sale of Dart Line
19
International Financial Reporting Standards
Adjustments to income attributable to shareholders for IFRS
H1 2006
R’000
H1 2005
R’000
F2005
R’000
Intangible assets
18 304
17 227
32 829
Share-based payments
24 160
16 920
37 580
Revenue recognition
2 943
2 020
4 315
Property plant and equipment
and leases
3 843
9 127
18 238
49 250
45 294
92 962
NOTE: IAS17 straight lining of fixed percentage escalation leases adopted in
F2005 accounts. Impact for H1 2006 R7,1m (H1 2005 R6,3m).
20
Strategy & Prospects
South African macro Trends
Macro Trends that continue to benefit
Bidvest group companies
Increasing spending power from growing middle class
Increasing outside-of-home food consumption
Emphasis on education – growing learner base
Growing new vehicle market - could double in 5 years
Upcycle in infrastructure spend
Aspirational branding
Tourism, leisure and related services
Outsourcing (infrastructure, labour, intellect, services)
Growth in specific commodities and resources
22
The Bidvest Model
TODAY
TOMORROW
Management decentralised &
autonomous
Management decentralised &
autonomous
Management incentivised (options)
Management incentivised (revised
approach)
Management as per the Bidvest
philosophies of ROFE, working capital
management, cashflow management,
etc)
Bidvest management philosophies
remain the same
100% ownership
Policy shift: no longer only 100%, but
still significant management influence;
facilitates participation in larger scale
business opportunities
Board structure
Optimisation of Board: structure;
succession planning; strengthening of
non-executive; BEE
23
New Group Structure
Bidfreight
Bid Paper
Plus
Bidserv
(incl. Renfin
& Minolta)
Bidvest Europe
(incl. Deli XL)
Bidvest
Australasia
Bidindustrial
(incl. Office
Products)
Bid Automotive
Bid Prop
Caterplus
(incl. Combined
Foods)
Corporate
1. Group reorganised to realise the synergies between product categories as
well as group businesses
2. Bidvest remains committed to decentralisation
24
Prospects for F2006
Positive impact of Deli XL
Automotive
 Market growth over the next 5 years
 Growing car parq boost for ancillary services
Strong volume growth set to continue – contract wins will
benefit H2 2006
Focus on Lithotech France and mediocre performers
Impact of additional capacity in SA and offshore
Ample capacity for further gearing
Group energisation
25
Prospects for F2006
CENTS PER SHARE
HEPS - 1st Half
HEPS - 2nd Half
Earnings are
traditionally
weighted toward
second half
353.7
296.0
216.9
220.3
215.9
243.2
248.0
F2002
F2003
F2004
302.7
F2005
368.6
Deli XL in for only 3
months of H1 2005
F2006
* F2005 restated for IFRS
MANAGEMENT IS CONFIDENT OF CONTINUED REAL
HEPS GROWTH
26
Appendix 1:
Divisional Results
Services – Bidfreight
Bulking up
Upgrading of bulk facilities - a competitive
advantage for the future
 BMA profits up 88% despite upgrade
construction; MOU on terms has not yet
translated to alterations to leases
 SABT profits up 8% on better volume
 IVS profits up 8% despite higher costs on
re-negotiated leases; Rand strength hurts
margin on export business
 SACD profits up 33%, aided by new Durban
capacity and Intermodal volumes
 Safcor billings 16% up & profits 24% up
mainly on buoyant incoming trade
 Overall business increase for Marine
Prospects
 focus on organic growth & acquisitions
Rm Trading Income
350
Rm Revenue
9000
300
+18%
8000
250
7000
200
6000
150
5000
3.4%
3.4%
100
4000
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
29
Services – Bidcorp
Floating off
Strategic re-appraisal reaps
substantial gains
Rm Trading Income
15
Rm Revenue
 Dart Line sold effective 1January to
Cobelfret for £58,9m; buyer repays
overdraft of £5m. Total gross realisation 13
in past year of £75m (incl. prior sale of 2
11
ships £11m)
Volume Distribution continues to
disappoint
 Ontime steady – but loss in France
 Car park business lost to NCP
Prospects
 SVTV volume distribution in France
exited
 UK Volume Distribution gains Volvo &
Toyota as well as renewal from Land
Rover & Mini
660
640
620
600
9
580
7
560
5
+1%
0.9%
540
0.9%
3
520
500
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
30
Services – Bidserv
Cleaning up
Expense management boosts margin
Cleaning and Laundries exceptional profits
Cleaning: up 21% - Sasol & Eskom H2
Laundries: up 27%, ROFE 25% leveraging off capital programme
Steiner: up 12%; beats off competition
Security: up 15%, substantial IPS orders
Greens: Top Turf disappoints, orders good
for H2
Bidair: above budget, lack of a ground
handling license impedes progress
Industrial Products: G Fox benefits, new
Johannesburg facility to be beneficial
Prospects: new contracts, real growth in
garment rental, stronger H2
Rm Trading Income
190
170
150
130
110
90
70
50
Rm Revenue
2000
1800
1600
1400
1200
+11%
1000
800
9.9%
9.3%
600
400
200
0
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
31
Services – Renfin
Travel comes up trumps
Travel trading income recovery (+56%):
 Despite continued flat ticket prices and
severe industry competition
 Volumes down but profitability up post
introduction of fee-based revenue in May
’05
Banking trading income (-21%)
 Retail forex margins down 100 bp; stable
Rand; costs incurred to develop
infrastructure; high excesses for cash-intransit thefts
 Late launch of Debit Card products
Prospects
 Continued cost containment
 Fees and commissions in the Bank are
increasing
Rm Trading Income
100
Rm Revenue
400
350
300
+15%
50
19.2%
250
20.4%
200
150
100
50
0
0
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
32
Foodservice Product – Bidvest Europe (3663)
Britannia cools its way
3663 revenue up 8% to £709,4 and profits up 4%
to £21,9m*, despite:
 GDP growth decelerates; London bombs;
wage, fuel, utility cost pressures;
Lower margin CD sales up 32% due to new KFC
contract (high £15 unit values)
Multi-temp Like-for-like margin up
Barton meat contains losses
MOD profit down - reduced military activity
£16m capex – 3 new depots complete
JV signed with Compass - non-food
Horeca Dubai small; 3663 to assist with growth
initiatives
Prospects
 Joint purchasing with Deli XL; new MOD
contract decision due 1 May
* 26 weeks in H1 06 versus 27 weeks in H1 05
Rm Trading Income
280
Rm Revenue
8.5
260
7.5
240
220
+6%
6.5
200
180
160
140
120
100
5.5
4.5
3.2%
3.1%
3.5
2.5
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
33
Foodservice Product – Deli XL
Deli set to excel
* 26 weeks in H1 06 versus 27 weeks in H1 05
Deli XL combined = €4,3m (£2,9m) in profits
(12/9/05 – 31/12/05)
Rm Trading Income
Rm Revenue
100
Deli XL Netherlands
90
strong cash generation
80
Revenue: R2,15bn
Institutional benefits from new Compass
sales; early signs of positive market growth 70
60
emerging
50
Hospitality running at a loss
40
Deli XL Belgium
30
R32,4m
Management changes
20
Profits static, but sales up 8.6% due to
1.5%
10
Quick and Pizza Hut
0
Cash flows pleasing
H1 2006 (3 months)
Prospects: on track to deliver on BVT
expectations; margins of 2-3% expected over
Trading income
2-3 years
…%
Trading margin
34
Foodservice Product - Bidvest Australasia
A lot of lolly in lucky country
AUSTRALIA (A$):
Revenue up 10% to $566,7m & profits up 20%
to $17,3m*; margin expands to 3,1% from
2,8% (foodservice margin 3,4%)
Organic revenue up 8%, profits up 16%
Gold Coast shines but losses in Sydney &
Melbourne battling with cost structure
Hospitality focuses on expanding footprint
QSR profits up 4x; Yum! (80% of volume) 5year contract on favourable terms
Prospects – “street” focus; national market
share of 20% = untapped potential
New Zealand (NZ$)
Revenue $132m, profits up 21% to $5,7m –
Fresh now 10% of profits
Prospects: well prepared for capacity and
infrastructure constraints, as well as lower
GDP growth
* 26 weeks in H1 06 versus 27 weeks in H1 05
Rm Trading Income
Rm Revenue
130
5000
4500
110
4000
+28%
90
3500
70
3000
2500
50
2000
30
3.0%
3.2%
10
1500
1000
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
35
Foodservice Product – Caterplus (SA)
Dietary disciplines
Top line up 14%, profits up 5%
Rm Trading Income
Rm Revenue
Minimal food inflation vs overhead cost
120
1400
increases
Hospitality flat, slow down in leisure, but
100
1200
continued growth in fast food
Home entertainment a growing reality
80
1000
+5%
Catering Supplies: procurement disciplines
60
800
Frozen: market share gains, flat profits
600
Speciality: capitalises on home entertainment 40
9.1%
Vulcan: profits down, export off
20
400
8.3%
Hotel Amenities: profits up despite customer
losses
0
200
Lufil Packaging: good growth; branded fast
H1 2005
H1 2006
foods
Trading income Revenue
Prospects: differentiation, aggressive
responses
…% Trading margin
36
Foodservice Products – Combined Foods (SA)
Dough (n’t) despair
Relocation to new Longmeadow premises
temporarily disruptive
Crown increases profits despite import
prices and poultry disease challenge
Sourcing initiatives in place
BidBake deflated by import threats,
relocation of yeast production to
Johannesburg
Crown/Bidbake synergies
Prospects
 efficiency gains from world class
facilities
 discount reductions at Bidbake
 procurement benefits
Rm Trading Income
100
Rm Revenue
700
90
600
80
500
0%
70
60
12.7%
400
12.2%
300
50
40
200
30
100
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
37
Commercial Products - Bidoffice
Warmth out of Walton
Waltons profits rise 23% despite continuing
underperformance in Southern Gauteng –
significant expense savings achieved
Growth in furniture and promotional gifts
Furniture: profits up 7% - strategic realignment
and move up the value chain
Kolok suffers ongoing margin squeeze; cheap,
grey & counterfeit imports plus price wars
continue to feature
Automation: outperformance continues, with
Minolta profits up 19% off a high base
Prospects: solutions based model at Kolok &
state of the art premises, sales focus at
Waltons
Rm Trading Income
Rm Revenue
2050
115
1850
110
1650
105
+8%
100
1450
95
90
1250
6.5%
85
6.3%
80
1050
850
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
38
Commercial Products – Bid Paper Plus*
Paper isn’t Board
Toughest trading ever experienced
Commendable 23% rise in continuing profits
Lithotech SA: market decline in business forms
being offset by mailing & laser (revenue up
15%, profits up 26%); R41m capex
Lithotech France: H2 ’05 profit turns to H1 loss
despite restructuring
Rm Trading Income
100
1100
80
900
+4%
60
700
7.9%
Silveray: aggressive pricing, margin pressure
Prospects: Lithotech France exit strategy,
continued focus on shifting out of commodity
products by Lithotech, modernisation of
Silveray factory processes & redesign of
Croxley products, tough market to keep
management on its toes
Rm Revenue
1300
7.5%
500
40
300
20
100
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
*Was Printing & Paper Conversion
39
Commercial Products - Bid Industrial Products
Electric Avenue
Voltex
 Profits up 57% off a 21% rise in revenue
Rm Trading Income
Rm Revenue
1900
130
 Electrical Wholesale boosted by building
 Smart buying of copper – strategic stocking 120
1700
110
 Organic growth benefits from focus on
1500
tenders, projects & industry
100
1300
+26%
 Luminary initiatives evolving well
90
1100
Afcom
80
 Profits down 19% off a 3% rise in revenue
900
70
6.8%
 Deflation, import penetration
6.4%
700
60
 Balancing - selective imports, rationalising
500
50
manufacturing capability
H1 2006
H1 2005
Buffalo Executape
 Modest drop in profits; DIY market
penetrations
Prospects: overall upward momentum
continues
Trading income
Revenue
…% Trading margin
40
Automotive Products - McCarthy
Moving motivation
Profits up 29% off a 20% rise in revenue
Access to BVT group treasury yields sizeable
funding benefit
New vehicle units of 31 131 (up 25%); used
units of 27 458 (up 14%) but ongoing margin
squeeze
Toyota & VW/Audi star contributors
Trend to volume-orientated market
Budget: volumes up 23%, profits pleasing
Yamaha leverages full offering in a strong
consumer environment
Financial profits up 35%, market gains
Growing HP debtors book & leasing fleet
GAZ taxi sales 258 units (up from 66)
Prospects: agreement with Auto China (FAW
product); favourable auto market over
medium term;
Rm Trading Income
300
Rm Revenue
9500
250
8500
7500
200
6500
5500
+29%
150
100
3.2%
3.5%
50
4500
3500
2500
1500
500
H1 2005
Trading income
H1 2006
Revenue
…% Trading margin
41
Corporate Services
Rm Trading Income
BNS sale to BCX
mymarket.com continues to grow customer
base
Property rental income up 11,4%
Corporate costs net of investment income
(–R12m); decrease in investment income
Sharp recovery at Namsov to R42,3m
(R13,1m attributable to Bidvest) due to
improved selling prices, catch and fish
sizes
70
56.2
60
50
40
32.6
30
20
10
0
H1 2005
H1 2006
Trading income
42
Appendix 2:
Macro Trends that benefit Bidvest
companies
Assessment of International Macro Trends
Bidvest existing
strong positioning
Key Macro Trends
Bidvest strategic
initiatives
International & SA
Foodservices
Increasing outsideGeographic/range
of-home consumption expansion
of food
Caterplus, Yamaha
Leisure
Range extension;
geographic expansion
Bidserv, Bid Paper Plus Outsourcing
Bolt-on services;
(infrastructure, labour, geographic/range
intellect, services)
expansion
Bidfreight
Niche commodities
Acquisitions (supply
and resources growth chain), capacity
expansion
Renfin
Travel services
Service extension
44
Assessment of South African Macro Trends
Bidvest existing
strong positioning
Key Macro Trends
McCarthy, Yamaha, SA  Increasing spending
Foodservices, Tiger
power from growing
Wheels, Renfin,
middle class
Bidserv. Bidoffice, Bid
Paper Plus, Voltex
Bidvest strategic
initiatives
Exposure
McCarthy, Financial
services
 New vehicle market
could double in 5
years
FML, asset-based
finance, distributorships
Voltex, Bidserv
(services PPP)
 Upcycle in
infrastructure spend
Electrical products,
lighting, healthcare
services
Yamaha, McCarthy
Aspirational branding Leverage
45
Appendix 3:
Historic performance
Historic Performance (F2005 restated for IFRS)
Annual Returns
3500
3000
2500
2000
1500
1000
500
0
5.2%
4.9%
4.8%
4.9%
4.7%
F2002
F2003
%
Rm
Operating Profit & Margins
4.9%
5.1%
F2004
1H
4.5%
4.4%
F2005
F2006
60
50
40
30
20
10
0
57
32
F2002
2H
220.3
215.9
243.2
248.0
F2002
F2003
F2004
302.7
F2005
2H
17% CAGR over 4 years
368.6
F2006
cps
cps
296.0
1H
27
F2003
F2004
31
F2005
ROE
DPS
353.7
216.9
25
ROFE
HEPS
700
600
500
400
300
200
100
0
55
51
49
350
300
250
200
150
100
50
0
172.2
100.0
112.0
136.8
108.0
113.4
133.8
90.0
F2002
F2003
F2004
F2005
1H
2H
16% CAGR over 4 years
47