Bidvest Group Limited · JSE:BVT
Bidvest — FY2007 Earnings Presentation
20 slides from Bidvest's earnings presentation, 2007
Slide 1: Appendix 1: Divisional Review
Appendix 1 Divisional Review 1
Slide 2: Bidfreight – A tightening of the lanyard
Bidfreight – A tightening of the lanyard Results Revenue 22% Slow first 3 Qtrs but record Q4 profits of R208m Trading profit 11% Good revenue gains but margins tighter due to customer Operating margin 3.1% pricing pressure and poor agricultural, steel & forest product volumes Rm 600 596 Substantial
Slide 3: Bidfreight – A tightening of the lanyard
Bidfreight – A tightening of the lanyard Terminals IVS: underlying profits up; tank capacity utilisation >90% led to higher maintenance & other costs RDS: profits down 38%, exacerbated by abnormal costs, a contract loss, lower 13.1% volumes, and severe margin pressure. Sub-optimal customers are bein
Slide 4: Bidserv – Organic produce
Bidserv – Organic produce Results Revenue 16% Profits driven organically; 19% increase despite strike action in cleaning & security industries; growth in tourism, commercial Trading profit 19% property, and petro-chemicals markets a feature Operating margin 12.4% Strikingly good results from TMS, In
Slide 5: Bidserv – Organic produce
Bidserv – Organic produce Industrial (janitorial): 22% rise in profits; industry-first cash & carry service; G Fox has increased profits 50% over the past two years; new Johannesburg facility for G Fox & Commercial Sundries My Market: into to the black with a R1m first-time profit; Group procurement
Slide 6: Bidvest Europe – Bit of a pounding
Bidvest Europe – Bit of a pounding Revenue 35% Results Trading profit 16% Trading profits up 16% to R758m; UK off 9% to £46.5m, Netherlands up 61% to £8.7m and Belgium up 18% to Operating margin 2.5% £2m. Sterling average exchange rate 1.48 (1.46) Rm 800 UK market increasingly cut-throat, with shake
Slide 7: Bidvest Europe – Bit of a pounding
Bidvest Europe – Bit of a pounding 3663: sales up 6% to £1.54m but profits fall 9% from £51.5m to £46.5m – ROS eases to 2.8% from 3.5%; cash generated from operations £59.6m; £3.9m cash retained from working capital; capex £25m vs £35m • Wholesale margins under pressure due to food inflation (6%) –
Slide 8: Bidvest Asia Pacific – Eyeing the Orient
Bidvest Asia Pacific – Eyeing the Orient Results Revenue 35% Australia and New Zealand put in an impressive Trading profit 58% performance, building on years of hard-won gains Operating margin 3.9% Carefully considered landmark entry into Hong Kong, Rm Singapore & mainland China, by way of a $80m 40
Slide 9: Bidvest Asia Pacific – Eyeing the Orient
Bidvest Asia Pacific – Eyeing the Orient New Zealand: sales up 19% to $325.5m and profits up 23% to $14.4m; 7.6% $12m capex; economy moribund, with high interest rates, low growth and commodity-fueled currency strength; market share gains in a limited growth market; staff numbers up 20% to 680; pers
Slide 10: Bidfood – Accomplished Caterplus
Bidfood – Accomplished Caterplus Revenue 15% Results Trading profit 6% Momentum continues to build at Caterplus, Speciality excelled; strategic objectives now firmly materialising in Operating margin 7.3% on-the-ground execution as market share gains are Rm made at higher levels of profitability 300
Slide 11: Bidfood – Accomplished Caterplus
Bidfood – Accomplished Caterplus Ingredients: revenue up 9% but profits fell by 15%; Crown National was a 6.2% notable outperformer, with profits up 28%; new single-unit group structure implemented April 2007 to instill common disciplines, improve procurement and purchasing power, uplift quality con
Slide 12: Bid Industrial & Commercial Products – Wondrous Wattage
Bid Industrial & Commercial Products – Wondrous Wattage Results Revenue 24% 49% rise in profits off a 24% rise in revenue, driven Trading profit 49% largely by a volcanic Voltex together with sparkling Operating margin 8.7% backup from Office, Packaging & Vulcan Rm 743 Voltex: off an already high ba
Slide 13: BidIndustrial & Commercial Products – Wondrous Wattage
BidIndustrial & Commercial Products – Wondrous Wattage • Kolok improved profits by 24% off a 16% rise in revenue; higher volumes + new branches • Furniture manufacturing& importing businesses excelled, driven by 16.3% urbanisation, higher business confidence, and office re-locations and upgrades Pac
Slide 14: Bidpaper Plus – New tech horizons
Bidpaper Plus – New tech horizons Revenue 1% Results Trading profit 6% Increasing success in strategy to provide digital and new Operating margin 12.4% technology solutions as a complement to strong traditional print production base Rm 250 Revenue flat in line with budget due to non-recurrence of DR
Slide 15: Bidpaper Plus – New Tech Horizons
Bidpaper Plus – New Tech Horizons Exit of a major lightweight paper supplier has left a single local source, with 5% SA prices now on par with imports – steps taken to address sourcing vulnerability and exploit purchasing muscle R60m in capex at Silveray to improve quality, capacity, and productivit
Slide 16: Bid Auto – Travelling a Scenic Route
Bid Auto – Travelling a Scenic Route Results Revenue 15% Like-for-like profit growth of 20% (GAZ fully Trading profit 17% provisioned); diversification of income streams results in motor retail reducing to 47% of total profits in a slowing Operating margin 3.9% and hard-fought marketplace Rm Total v
Slide 17: Bid Auto – Travelling a Scenic Route
Bid Auto – Travelling a Scenic Route McCarthy PreOwned rebranded as McCarthy Call a Car Direct and McCarthy Call a Car Virtual (for e-sales); McCarthy Value Centres concept launched in March; new Daimler representation in Northern Natal effective 1 April 2007 15.9% Yamaha experienced tougher trading
Slide 18: Bidvest Corporate – Bricks & Mortar
Bidvest Corporate – Bricks & Mortar Turnover 14% Results Trading profit 87% Bidvest Properties - development of a good quality Operating margin N/A portfolio offering strategic benefits; management and maintenance of these valuable assets ensures Rm optimal utilisation and return 250 225 Remaining B
Slide 19: Appendix 2: Historical Performance
Appendix 2 Historical Performance 01
Slide 20: Historic Performance
Historic Performance Trading Profit and Margins Annualised Returns 5000 60 4000 5.1% 50 53 54 49 51 50 3000 5.2% 40 5.2% Rm % 30 2000 4.8% 4.9% 31 32 30 4.3% 20 25 27 1000 4.5% 4.4% 4.9% 4.7% 10 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 1H 2H ROFE ROE HEPS DPS 1200 500 1000 400 248.4 800