Bidvest Group Limited · JSE:BVT
Bidvest — FY2009 Earnings Presentation
37 slides from Bidvest's earnings presentation, September 2009
Slide 1: Audited results for twelve months ended 30 June 2009
Audited results for twelve months ended 30 June 2009 1
Slide 2: What is Bidvest?
What is Bidvest? A divisionalised investment holding company specialising in distributive-trades Freight management, outsourced soft-services, foodservice & food ingredients, automotive retailing and fleet management, industrial & commercial products Strategy Implementation Ź Own the cash flow Ź Min
Slide 3: Agenda
Agenda X Introduction – CEO Brian Joffe X Financial Results – FD David Cleasby y X Nowaco/Farutex acquisition – CEO Brian Joffe together with Nowaco MD Bohumil Volf and Farutex MD Pawel Swiechowicz X Assessment of trading performance and prospects - CEO Brian Joffe X Comprehensive appendices provide
Slide 4: Introduction – Brian Joffe
peice Introduction Brian Joffe
Slide 5: F2009 results summary
F2009 results summary Introduction Revenue © 1.8% to R112.4bn Trading profit ª 3.7% to R5.1bn Attributable profit ª 14% to R2.8bn HEPS ª 13% to 930cps Headline earnings ª 13% to R2 R2.8bn 8bn DPS* ª 23% to 380cps (final 190c vs. 275c) Cash generated from operations © 11% to R6.8bn ROFE ª 35% vs 42%
Slide 6: Brian Joffe’s opening conclusion
Brian Joffe’s opening conclusion Introduction X Bidvest has risen to the challenge of the “new normal”... X …but b t we underperformed d f d our own expectations t ti X Bidvest won the match for 2009 but not without scoring some own goals X My gratitude though to a terrific team of management, manag
Slide 7: Brian Joffe on notable features of the year
Brian Joffe on notable features of the year Introduction X Only four of the eleven trading segments recorded lower profits X Insignificant P&L £ and A$ currency benefit for the full year X R/£ closing rate 18% stronger, balance sheet impact + translation reserve X Stock and debtors well managed and
Slide 8: Financial Results – David Cleasby
Financial Results David Cleasby 8
Slide 9: F2009 – David Cleasby’s salient perspectives
F2009 – David Cleasby’s salient perspectives Financials X Trading profit margin and ROFE is down but considered to be good in the circumstances i t X Trading profits up 6% in H1 and down 12% in H2 X Cash C h generated t d by b operations ti 140% off trading t di profit fit (2008 : 114%) X Credit ava
Slide 10: F2009 – David Cleasby’s salient perspectives
F2009 – David Cleasby’s salient perspectives Financials X Significant costs of restructuring and re-organisation, some of which has negatively ti l iimpacted t d headline h dli earnings i X Negative movement on translation of foreign earnings of R1,3bn (Rand closing against the Sterling at R13 R13.0
Slide 11: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 X 10% growth excluding business with exposure to automotive industry (McCarthy and Safcor Sa co Panalpina) a a p a) 11
Slide 12: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 Trading profit 5 136,6 136 6 -3.7 -3 7 5 334,9 334 9 Trading margins F2009 F2008 Comment Local 6 1% 6.1% 6 2% 6.2% Materially impacted by Bid Auto and Bid I
Slide 13: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 Trading profit 5 136,6 136 6 -3.7 -3 7 5 334,9 334 9 Net finance expense (1 029,2) +10.5 (931,0) X IIncrease in i finance fi expense ddue tto iincreasedd ff
Slide 14: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 Trading profit 5 136,6 136 6 -3.7 -3 7 5 334,9 334 9 Net finance expense (1 029,2) +10.5 (931,0) Associate income 49,2 -59.6 121,9 Associates Enviroserv ª (
Slide 15: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 Trading profit 5 136,6 136 6 -3.7 -3 7 5 334,9 334 9 Net finance expense (1 029,2) +10.5 (931,0) Associate income 49,2 -59.6 121,9 T ti Taxation (1 046 046,
Slide 16: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 Trading profit 5 136,6 136 6 -3.7 -3 7 5 334,9 334 9 Net finance expense (1 029,2) +10.5 (931,0) Associate income 49,2 -59.6 121,9 T ti Taxation (1 046 046,
Slide 17: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 Trading profit 5 136,6 136 6 -3.7 -3 7 5 334,9 334 9 Net finance expense (1 029,2) +10.5 (931,0) Associate income 49,2 -59.6 121,9 T ti Taxation (1 046 046.
Slide 18: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 Trading profit 5 136,6 136 6 -3.7 -3 7 5 334,9 334 9 Net finance expense (1 029,2) +10.5 (931,0) Associate income 49,2 -59.6 121,9 T ti Taxation (1 046 046,
Slide 19: Consolidated Income Statement
Consolidated Income Statement Financials Avg Avg Year ended June 30 2009 R/£14,47 R/£14,64 Rm’s 2009 % ch. 2008 Revenue 112 427,8 1.8 110 477,6 Trading profit 5 136,6 136 6 -3.7 -3 7 5 334,9 334 9 Net finance expense (1 029,2) +10.5 (931,0) Associate income 49,2 -59.6 121,9 T ti Taxation (1 046 046,
Slide 20: Consolidated cash flow statement – Rm’s
Consolidated cash flow statement – Rm’s Financials Year ended June 30 2009 Year ended June 30 2008 6879 Cash generated from ops pre wc 6816 -131 Working capital utilised -780 -1024 Net Finance charges -1238 Taxation -1223 -1166 Distributions -1144 -761 Cash effects of investment act’s -1862 -4076 Ca
Slide 21: Net working capital days
Net working capital days Financials 9 5 17 9 16 8 Net days 33 33 Debtors days 37 33 36 31 30 32 33 34 33 30 Stock St k days d Creditors days -58 58 -60 60 -49 -61 61 -50 -53 53 H1 2007 F2007 H1 2008 F2008 H1 2009 F 2009 Some improvement in working capital management: X Inventory - increased strategi
Slide 22: Net working capital flows vs cash generated
Net working capital flows vs cash generated Financials Net working capital Cash generated by operations 4 3.6 36 3.5 35 3.2 3.3 3.0 3 2.6 2.3 2 1.8 1.0 1 Rbn 0 -1 -2 -2.3 -2 3 -2.5 24 -2.4 -3 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 X Upward trend in half on half cash generated X Working capi
Slide 23: Net debt and interest cover
Net working capital flows vs cash generated Financials Net interest-bearing debt (Rbn) Interest cover (x) 9 10 9.3 9 8 8 7.9 8 7 73 7.3 7 6 Target interest cover range 6 5 5.5 5.7 Rbn 5.5 5 5 4 4.7 42 4.2 4.1 4 3.8 3 3 2 2 1 1 0 0 H1 2007 F 2007 H1 2008 F 2008 H1 2009 F 2009 X Clean EBITDA interest
Slide 24: Nowaco/Farutex Acquisition
Nowaco/Farutex Acquisition q Brian Joffe MD Nowaco Bohumil Volf MD Farutex Pawel Swiechowicz 24
Slide 25: Perspectives on Nowaco/Farutex acquisition
Perspectives on Nowaco/Farutex acquisition Nowaco/Farutex X Businesses source and distribute multi-temp products on a wholesale basis to a wide customer base in Czech,, Slovakia,, and Poland X Bidvest will purchase 100% of the issued shares from private equity vendors for an enterprise value €250m (
Slide 26: Assessment of trading performance and prospects
Assessment of trading g performance and prospects B i JJoffe Brian ff 26
Slide 27: Joffe on Bidfreight
Joffe on Bidfreight Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 •Cost reductions and a broadening of the customer base assisted Bidfreight to 21 992.7 -15.2 18 647.9 690.8 +11.2 768.1 exceed budgeted profit •Profits in each quarter h
Slide 28: Joffe on Bidserv
Joffe on Bidserv Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 •Strong H1 followed by a much weaker H2 but good result for the year 6 424.5 +13.1 7 267.9 838.7 +11.4 933.9 •Strong cash generation and record ROFE of 70% •Critical mass i
Slide 29: Joffe on Bidvest Europe
Joffe on Bidvest Europe Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 3663 • Severely depressed UK economy 33 683.8 +9.8 36 984.5 879.8 -12.5 770.0 • Business pproperly p y sorted out, but at some cost • Working capital & inventory wel
Slide 30: Joffe on Bidvest Asia Pacific
Joffe on Bidvest Asia Pacific Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 Australia • Record result assisted by market share gains 14 467.4 +18.0 17 067.6 551.4 +9.3 602.5 and efficiencies as economic cycle turned Australia Australia
Slide 31: Joffe on Bidfood
Joffe on Bidfood Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 Caterplus & Speciality •Adapted well to a declining market as all 4 418.9 +12.1 4 952.9 358.8 +7.1 384.3 categories in the food channel came under increasing trading stress
Slide 32: Joffe on Bid Industrial & Commercial
Joffe on Bid Industrial & Commercial Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 Electrical Wholesaling Division •Trading significantly weaker in H2, cash 9 403.0 -1.2 9 290.9 790.1 -25.0 592.7 flow up •Copper stock write-down R34m •
Slide 33: Joffe on Bidpaper Plus
Joffe on Bidpaper Plus Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 •Good diversity & mix of drivers supports result 1 937.4 -0.2 1 933.4 220.2 +1.2 222.8 •Significant cash generated •One off project work a boost •Volumes flat, pricin
Slide 34: Joffe on Bid Auto
Joffe on Bid Auto Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 •Haemorrhage at a number of dealerships halted 18 467.5 -10.8 16 464.3 743.0 -32.3 502.9 •Shift into fleet management to reduce reliance on retailing minimised downside sh
Slide 35: Joffe on Bidvest Namibia
Joffe on Bidvest Namibia Assessment & pprospects p Revenue (Rm) Trading Profit (Rm) Segment comment F2008 % ch. F2009 F2008 % ch. F2009 •With the exception of Fisheries Bidvest Namibia is a microcosm of the greater 1 377.3 +17.4 1 616.4 164.0 +79.5 294.3 Bidvest •BidCom and Bidfish the two pillars •
Slide 36: Joffe’s Group round up
Joffe’s Group round up Groupp round upp X Integration of Nowaco/Farutex, learning about Central Europe markets X Pre-tax restructuring costs totaling R380m are behind us X Benefits of group restructuring will manifest in earnings during F2010 X Foodservice Europe expected to show improved performanc
Slide 37: Thank you for attending Q&A
Thank you for attending Q&A 37