Bid Corporation Limited · JSE:BID
Bid — Bidcorp — Investor Day (May 2018)
162 slides from Bid's investor day presentation, May 2018
Slide 1: Capital Markets Day, London, May 2018
Capital Markets Day London, May 2018
Slide 2: Agenda
Agenda 2 Bernard Berson Introduction & Group trading update Johnny Kang Bidfood Asia Klaas Havenga South Africa, Middle East & Turkey Rachel Ruggiero Bidfood Australia Nigel Boswell Bidfood NZ, South America, Global procurement & Technology Andrew Selley Bidfood UK / Bidfresh David Cleasby Europe &
Slide 3: Introduction and Group trading update
Introduction and Group trading update Bernard Berson - CE Bidcorp
Slide 4: Angliss Asia Business Update
Angliss Asia Business Update May 2018 Serving Those Who Serve Great Food
Slide 5: Economic Environment
Economic Environment Population: 1.4 billion GDP (PPP): $21.3 trillion 6.9% growth 7.3% 5-year compound annual growth $15,399 per capita Inflation (CPI): 2.0% CHINA China Market Size Angliss China % of Total Market Size Product Imported Imported Value Imported Imported Value Volume Value Volume (MT)
Slide 6: Economic Environment
Economic Environment HONG KONG Population: 7.4 million Hong Kong Market Size Angliss Hong Kong % of Total Market Size Product Imported Imported Value Imported Imported Value Volume Value Volume (MT) (USD ‘000,000) Volume (MT) (USD ‘000,000) (%) (%) Meat 1,169,780 $4,034 14,919 $116.12 1.28% 2.88% Da
Slide 7: Our Presence in Asia
Our Presence in Asia 28 Japan China cities HK Macau Vietnam Philippines Malaysia Singapore Indonesia Potential Market
Slide 8: Development in China
Development in China Today in China, we are in more than 28 cities Current Operations Future Development Heilongjiang China Changchun Jilin Xinjiang Xinjiang Liaoning Shenyang Beijing Neimonggol Tianjin Shijiazhuang Hebei Ningxia Shanxi Qinghai Shandong Gansu Zhengzhou Shaanxi Henan Jiangsu Xian Nan
Slide 9: Our Logistic Capacity
Cold Storage China Region Number of Trucks (metric tonnes) Our Logistic Capacity 北京 Beijing 天津 Tianjin 17 2 9,200 200 瀋陽 Shenyang 3 300 石家莊 Shijiazhuang 1 50 Number of Cold Storage 山西 Shanxi 1 13 Other Asia Regions Trucks (metric tonnes) 濟南 Jinan (Shandong) 1 50 香 港 上海 Shanghai 13 2,700 Angliss Hong
Slide 10: Angliss Asia Next 4 Years Sales Growth Target
Angliss Asia Next 4 Years Sales Growth Target 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
Slide 11: Angliss' Strength Compared to the Market Competition (China)
Angliss’ Strength Compared to the Market Competition (China) • Each branch well equipped with administrative structures, professional sales team, self-owned warehouse and delivery team • Diversified sales channels including HoReCa, bakery chains, factories, supermarkets, airline, wholesale • Strong
Slide 12: Angliss' Strength Compared to the Market Competition (Hong Kong, Macau, Singapore)
Angliss’ Strength Compared to the Market Competition (Hong Kong, Macau Singapore) • A very diverse portfolio to provide one stop shop solution, covering meat, dairy, seafood, grocery, beverages and gourmet fine food • Own production and processing center for meat, seafood and ready to eat products,
Slide 13: Challenges & Threats (China & Hong Kong)
Challenges & Threats (China & Hong Kong) • Uncertainty of the Policy changes in China • Number of largest suppliers are starting to become more aggressive entering by establishing their office & sales team in the country • The two largest online apps in the world, Alibaba & Tencent are also bridging
Slide 14: Challenges & Threats (Singapore)
Challenges & Threats (Singapore) US-China tensions cast dark clouds in the horizon • Prime Minister Lee expressed that Singapore may be drawn into trade tensions between the US and China if things escalate and that this may hamper Singapore’s export as well. Difficulty in recruiting and retainin
Slide 15: Challenges & Threats (Singapore)
Challenges & Threats (Singapore) Fierce Competition from Competitors • Due to the small saturated market, increasing number of smaller players strives by offering free value-added services • They also support Saturday and Sunday deliveries
Slide 16: Highlights of the Business
Highlights of the Business • We are operating in 28 cities in China now • Meat processing plant in China Region will be ready for operations in end of 2018, now under construction & development • Expanding and further develop our Private Label Brands • Acquisition of Linson Global Seafood Hong Kong
Slide 17: Meat Processing Plant & Meat Business Development
Meat Processing Plant & Meat Business Development Location: Chancheng District, Foshan City, Guangdong Province, China Estimated Area : 1,594m² : 1,594 • Meat Cutting & Packaging Area : 696m² • Marinated Meat Processing Area : 172m² • Cold Storage Area : 272m² A huge business in the Chinese cuisine,
Slide 18: Initial Production Plan
Initial Production Plan Initial Launching Items ********* Burger Patties We can provide hand cut and tailor made packaging according to Sous Vie Steak customers’ requirement and specifications Meat cutting Meat marinating Small packaging
Slide 19: Business Expansion
Business Expansion Acquisition of Linson Global Seafood Trading • Supply a comprehensive range of frozen fish and seafood to a wide range of key customers in the wholesales and supermarkets
Slide 20: Strengthen Development of Gourmet Chinese Cuisine Business
Strengthen Development of Gourmet Chinese Cuisine Business • Chinese cuisine is still the dominating food service preference in China and Hong Kong. Customers are willing to pay more for quality and premium Chinese cuisine for business and family gatherings. • Good quality of ingredients are key to
Slide 21: Bidfood Malaysia & Gourmet Partner
Bidfood Malaysia & Gourmet Partner Gourmet Partner – Specialised in Gourmet Food Bidfood Malaysia – Specialised in Pastry and Confectionery Both companies under one roof allow them to share operational best practice, deliver a better customer experience and offer more comprehensive product ranges, w
Slide 22: Current Coverage & Future Expansion
Current Coverage & Future Expansion With the establishment of Bidfood Malaysia, there is synergy between both Bidfood Malaysia & Gourmet Partner Malaysia – Able to set up 3 more offices in: Johor Bahru Kota Kinabalu Penang/Langkawi Looking for acquisitions in East Malaysia Existing Offices: 1) Kuala
Slide 23: Gourmet Partner Vietnam
Gourmet Partner Vietnam • Gourmet Partner penetrating Vietnam market by partnering a local company – Dai Thuan, expect the licence to be delivered in May 2018 • This joint-venture will give GPVN immediate access to 5 logistical platforms (Ha Noi, Saigon, Da Nang, Nha Trang, Phu Quoc island) which ar
Slide 24: Angliss' Recipe for Success
Angliss’ Recipe for Our large market share Our added value service Our good track record with 72 years experience Our innovation Our care and passion Our foodie people!
Slide 25: Thank You
Thank You Serving Those Who Serve Great Food
Slide 26: Capital Markets Day Africa, Middle East & Turkey
CAPITAL MARKETS DAY AFRICA, MIDDLE EAST & TURKEY MAY 2018
Slide 27: Agenda
Agenda 2 Capital Markets Day, London, May 2018
Slide 28: Africa: Structure
Africa: Structure 3 50% Africa Chipkins Group HO Bidfood CFG Puratos Resource Numbers Facilities 48 - 17 22 9 Delivery Vehicles 406 - 272 64 70 Employees 3,581 24 1,994 924 639 Capital Markets Day, London, May 2018
Slide 29: Africa: South African Market Conditions
Africa: South African Market Conditions 4 • Overall sentiment more positive since the election of Cyril Ramaphosa but no meaningful economic impact evident yet • High unemployment and inequality continue to present significant socio-economic challenges • Forecast 2018 GDP growth: 1.9% • Forecast 201
Slide 30: Africa: Footprint
Africa: Footprint 5 Capital Markets Day, London, May 2018
Slide 31: Africa: Revenue contribution
Africa: Revenue contribution 6 Capital Markets Day, London, May 2018
Slide 32: Bidfood
«€ Bid food
Slide 33: Bidfood: History
Bidfood: History 8 • Originally two separate frozen and dry foodservice businesses - Chipkins and SeaWorld • Acquisition of 35 businesses over 15 years in SA • Embarked on multi-temp strategy merging frozen and dry businesses from 2006 • Acquired Famous Fresh – fresh fruit & veg distributor in 2018
Slide 34: Bidfood: Footprint
Bidfood: Footprint 9 Capital Markets Day, London, May 2018
Slide 35: Bidfood: Our favourite graph
Bidfood: Our favourite graph 10 Capital Markets Day, London, May 2018
Slide 36: Bidfood: Product Revenue Mix
Bidfood: Product Revenue Mix 11 Capital Markets Day, London, May 2018
Slide 37: Bidfood: Customer Revenue Mix
Bidfood: Customer Revenue Mix 12 Capital Markets Day, London, May 2018
Slide 38: Bidfood: Growth opportunities
Bidfood: Growth opportunities 13 • Fresh produce roll-out • Free trade / independent focus • Backward integration acquisition opportunities • Grow the number of products sold to existing customers • Own brand expansion - 33% of Revenue Capital Markets Day, London, May 2018
Slide 39: Bidfood: Technology
Bidfood: Technology 14 • On-Line orders now 62% of Revenue • Sales Tools “copied” from Australia grow sales & customer base • Vehicle tracking and management tool roll-out improves service levels • Customer on line payments reduces admin burden Capital Markets Day, London, May 2018
Slide 40: Crown Food
Capital Markets Day, London, May 2018
Slide 41: Crown Food: History
Crown Food: History 16 • National Spice acquired in 1989 • Crown Food Holdings acquired in 1992 and merged with National Spice to form Crown National • Celebrated its 100 year anniversary in 2012 • The acquisition of Continental Spice in 2004 - General foods • In 2017 a JV with Griffith Foods from t
Slide 42: Crown Food: Footprint
Crown Food: Footprint 17 Capital Markets Day, London, May 2018
Slide 43: Crown Food: What does CFG do?
Crown Food: What does CFG do? 18 • Nationally supplies food ingredients; condiments; equipment and ancillary products to the meat; poultry and general food industries • Blend/manufacture spice batch packs and condiments through a dry & wet manufacturing facility • Has supply relationships with leadi
Slide 44: Crown Food: Customer Revenue Mix
Crown Food: Customer Revenue Mix 19 Capital Markets Day, London, May 2018
Slide 45: Crown Food: Growth opportunities
Crown Food: Growth opportunities 20 • Product category expansion • Leverage growth in the wholesale channel • New innovative solutions to its customers • Launch of Crown 247 e-commerce platform Capital Markets Day, London, May 2018
Slide 46: Crown Food: Growth Opportunities
Crown Food: Growth Opportunities Capital Markets Day, London, May 2018
Slide 47: Chipkins Puratos
22 Capital Markets Day, London, May 2018
Slide 48: Chipkins Puratos: Footprint
Chipkins Puratos: Footprint 23 Capital Markets Day, London, May 2018
Slide 49: Chipkins Puratos: History
Chipkins Puratos: History 24 • Chipkins Bakery acquired in 1989 • NCP Yeast acquired in 1997 • In 2012 Chipkins Bakery and NCP Yeast merge to form Bidvest Bakery Solutions • In April 2017 50% of Bidvest Bakery Solutions sold to Puratos to form Chipkins Puratos Capital Markets Day, London, May 2018
Slide 50: Chipkins Puratos: Puratos
Chipkins Puratos: Puratos 25 • Market leader in the bakery ingredient segment with 59 production units globally • World class technical expertise and know how to allow expansion into product categories and segments in which Chipkins has historically been under-represented Capital Markets Day, London
Slide 51: Chipkins Puratos: Customer Revenue Mix
Chipkins Puratos: Customer Revenue Mix 26 Capital Markets Day, London, May 2018
Slide 52: Chipkins Puratos: Growth Opportunities
Chipkins Puratos: Growth Opportunities 27 • Fillings & Decor plant to be commissioned early 2019 • Increase own manufactured product sales • Sour dough; imitation cream and chocolate manufacturing expansion opportunities Capital Markets Day, London, May 2018
Slide 53: Bidfood Middle East
Capital Markets Day, London, May 2018
Slide 54: Bidfood Middle East: Market Conditions
Bidfood Middle East: Market Conditions 29 • 2018 GDP growth is expected to increase to 2.9% in 2018 • Geopolitical insecurity • Vat introduced in UAE and Saudi • Saudi reforms Capital Markets Day, London, May 2018
Slide 55: Bidfood Middle East: Footprint
Bidfood Middle East: Footprint 30 Amman Dammam Capital Markets Day, London, May 2018
Slide 56: Bidfood Middle East: What does the ME do?
Bidfood Middle East: What does the ME do? 31 • Exclusive distributor of international brands across the region Capital Markets Day, London, May 2018
Slide 57: Bidfood Middle East: Growth Opportunities
Bidfood Middle East: Market Conditions 32 • Grow market share by increasing the basket of products sold through acquisition and sourcing • Increased focus on growing own portfolio of brands; currently 5% • Expo 2020 in Dubai • Grow the under-developed markets – Oman; Bahrain; Jordan • Tap into the n
Slide 58: Aktaş
Capital Markets Day, London, May 2018
Slide 59: Aktaş: Market Conditions
Aktaes: Market Conditions 34 • GDP forecast 4.5% in 2018 • Sharp depreciation of Turkish Lira against the Euro • Inflation rate 10.2% to March 2018 • Geopolitical tensions and early election • Foreign tourism increased by 28% year on year but a different mix • Government focus on increasing the out
Slide 60: Aktaş: History
Aktaes: History 35 • Aktaes, based in Istanbul, acquired in 2013 • Efe, a foodservice distributor in the Izmir region, acquired in 2017 Capital Markets Day, London, May 2018
Slide 61: Aktaş: Footprint
Aktaes: Footprint 36 Capital Markets Day, London, May 2018
Slide 62: Aktaş: What does Aktaş do?
Aktaes: What does Aktaes do? 37 • Aktaes represents international brands mainly in beverages • Efe is a foodservice distributor supplying local product Capital Markets Day, London, May 2018
Slide 63: Aktaş: Growth opportunities
Aktaes: Growth opportunities 38 • Change the Aktaes business into a broadline foodservice business distributing local product • Acquire local foodservice businesses like Efe; there are more than 15,000 registered food distributors in Turkey Capital Markets Day, London, May 2018
Slide 64: Thank You
Thank You «€ Bidfood
Slide 65: London, May 2018
London, May 2018
Slide 66: Inspired by you
©Bidfood Inspired by you
Slide 67: Group Statistics
Group Statistics • Largest distributor in Australia • Operating in Australia since 1995 • 4 dedicated divisions • Foodservice • Fresh • Meat • Imports • Over 50 business units • Over 56,000 products • Over 700 delivery vehicles • 300 dedicates Sales Representatives
Slide 68: Branch locations and opportunities
• Located where the majority of the population is • New acquisition in Regional WA • Still opportunities in some large Regional towns
Slide 69: Inspired by you
©Bidfood Inspired by you
Slide 70: Key Economic Indicators
Key Economic Indicators • Population 24.5m • Unemployment rate 5.6% • Economic Growth 2.4% • Inflation 1.9% • Cash rate 1.5%
Slide 71: Our Favourite Graph
Our Favourite Graph 2500 140 120 2000 100 1500 80 Sales EBIT 60 1000 40 500 20 0 0
Slide 72: Fresh
©QBidfood fresh Picked to perfection
Slide 73: Fresh Update
Fresh Update • 6 stand alone facilities • Small part of the total Australian business but important • It has been challenging but we are seeing some really positive things happening • Found some great people • Huge opportunity to leverage off the foodservice customer base • Profitable division
Slide 74: Classic Meats
(Classic meats PROUDLY BIDFOOD
Slide 75: Meat Update
Meat Update • 5 processing facilities that deal direct with the customers • Tough year in 2017 and scored some own goals • Made some mistakes and decisions that in hindsight weren’t correct • Gone through a restructure this year • New Management • Future looks good and exciting • Profitable division
Slide 76: Supply Solutions
Cg supply solutions a
Slide 77: Update
Update • Fantastic division!!! • New name to reflect what the division does • Importing • Own brands • Manufacturing • Profit goes back to the branches through rebates • Largest Supplier to the Foodservice Branches • Import over 2000 containers annually
Slide 78: Inspired by you
©QBidfood Inspired by you
Slide 79: Update
Update • 90% of the Australian profit • 40 branches • Challenging period with branch restructures • Brisbane • Sydney • Melbourne • All branches are profitable • Great performances! • Festival Acquisition • Italian Importer • Alcohol Distributor
Slide 80: Inspired by you
C@Bidfood Inspired by you
Slide 81: Acquisition opportunities
Acquisition opportunities • New Locations • Smaller, more efficient branches • Importing • Home brands • Manufacturing • Meat • A$2b opportunity • Fresh • Aged Care Sector • A$1b food opportunity • Alcohol
Slide 82: New branches
New branches • Branches located closer to the customer • Increase customer penetration in metro areas • Branches more agile and responsive to customer needs • Order turnaround more efficient
Slide 83: Melbourne Region
Melbourne Region: 9,992km2 Melbourne Population: 5.03M Truganina – November 2015 Port Melbourne – March 2017 Clayton Geelong
Slide 84: Sydney Region
Sydney Population: 5.54M Sydney Region: 12,367km2 Sydney Botany – August 2017
Slide 85: Brisbane and Gold Coast Region
Brisbane Region: 15,842km2 Gold Coast Region: 404km2 Brisbane Brisbane Population: 2.4M Gold Coast Population: 571,722 Yatala – July 2017 Gold Coast
Slide 86: Alcohol
Slide 87: Alcohol
Alcohol • Great opportunity with the Festival Acquisition • Rolling it out branch by branch • Exclusive agency lines including imported and local • Free Trade customers including Aged Care customers
Slide 88: Thank You Questions?
Slide 89: Bidcorp Capital Markets Day London May 2018
BIDCORP CAPITAL MARKETS DAY LONDON MAY 2018
Slide 90: Presentation Topics
Presentation Topics • New Zealand & South America update • Country Development Strategy • Global Procurement • BidTechnology
Slide 91: New Zealand
NEW ZEALAND
Slide 92: New Zealand Business Environment
New Zealand Business Environment • GDP 2.9% • Inflation 1.1% • Unemployment 4.5% • Interest Rate 1.75%
Slide 93: New Zealand Bidfood
New Zealand Bidfood • Sales NZ$ 1.1B (10% ) • Staff 2,100 • Business Units 30 • Customers 17,000 • Products 18,000
Slide 94: New Zealand Sales 2000 - 2018
New Zealand Sales 2000 - 2018 1100 1000 1 Billion 900 800 700 600 Millions NZ$ 500 400 300 200 100 0
Slide 95: New Zealand Growth Focus
New Zealand Growth Focus Profitable Sales Growth
Slide 96: New Zealand Growth Focus – Manufacturing
New Zealand Growth Focus – Supply Chain • Manufacturing
Slide 97: New Zealand Growth Focus – Importing
New Zealand Growth Focus – Supply Chain • Importing 45 40 35 $M 30 25 20 15 10 5 0 2015 2016 Sales 2017 2018 % Total Sales 2015 2016 2017 2018 3% 3% 4% 5%
Slide 98: South America
SOUTH AMERICA
Slide 99: South America Opportunity
South America Opportunity Significant and challenging opportunity • Population 420m • Large foodservice market • Fragmented • Roll up and add value • Political and business environment variable • Excellent progress
Slide 100: South America Business Environment
South America Business Environment Chile Brazil • GDP 3.3% 2.1% • Inflation 1.8% 2.7% • Unemployment 1.8% 12.6% • Interest Rate 2.5% 6.5%
Slide 101: South America - Bidfood Chile
South America - Bidfood Chile • Sales CLP 28,230m (25% ) • Staff 137 • Business Units 4 • Customers 1,650 • Products 1,200
Slide 102: South America - Bidfood Brazil
South America - Bidfood Brazil • Sales R$ 231m (14% ) • Staff 467 • Business Units 2 • Customers 12,000 • Products 2,000
Slide 103: South America Sales
South America Sales CHILE SALES 2012 - 2018 BRAZIL SALES 2012 - 2018 30000 250 25000 200 20000 Millions CLP 150 15000 Millions (R) 100 10000 5000 50 0 0 2012 2013 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Slide 104: South America Growth Focus – Regional Expansion
South America Growth Focus – Regional Expansion • Argentina • Columbia • Peru
Slide 105: South America Growth Focus – Chile
South America Antofagasta Growth Focus Chile La Serena • Country expansion • Seafood and meat ARGENTINA Vina Del Mar Santiago Concepcion Puerto Montt
Slide 106: South America Growth Focus – Brazil
South America Growth Focus Brazil • Acquisition • Frozen category expansion
Slide 107: Country Development Strategy
Country Development Strategy Improve Build Foundation
Slide 108: Foundation
Foundation The right Understand Business / - Market Partner - Business Infrastructure Bidfood Philosophy Governance
Slide 109: Build
Build Customers Regions Products Achieved organically and by acquisition
Slide 110: Improve
Improve Service Process Technology Supply Chain Sharing international best practice
Slide 111: Global Procurement
GLOBAL PROCUREMENT
Slide 112: Global Procurement Process
Global Procurement Process Leveraging purchasing power of the group Group buying increased by 25% Identify the most competitive and sustainable source in the world All of our countries are now direct importing Enhanced communication and information sharing Highly encrypted communication tool s
Slide 113: BidTechnology
BIDTECHNOLOGY
Slide 114: BidTechnology Strategy
BidTechnology Login ID BID007 Strategy • A competitive advantage to Bidcorp • Decentralised development and deployment • Greater creativity • Reduced risk • Cost effective and flexible
Slide 115: Competitive Advantage
BidTechnology BidDirect OPRI Dynamic BidIQ Pricing Competitive Advantage Price DriverIQ Analyser OPRI+ Proprietary Technology
Slide 116: BidTechnology Future Technology
BidTechnology Future Technology
Slide 117: BidTechnology Future Technology
BidTechnology Future Technology
Slide 118: BidTechnology Future Technology
BidTechnology Future Technology
Slide 119: Thank You
THANK YOU Nigel Boswell
Slide 120: Analyst Presentation - May 2018
Analyst Presentation - May 2018 Andrew Selley
Slide 121: Our vision and mission
Our vision and mission 2 Bidcorp Capital Markets Day
Slide 122: Our values
Our values 3 Bidcorp Capital Markets Day
Slide 123: What makes Bidfood in the UK
What makes ue Bidfood in the UK Nene e ene n een eee eee « Bidcorp Bidcorp Capital Markets Day
Slide 124: Continued investment in growth
Continued investment in growth ▪ 2005 Birmingham £3m ▪ 2009 Paddock Wood £12m ▪ 2010 Bicester £4m ▪ 2011 Wakefield £4m ▪ 2012 Chepstow £16m ▪ 2014 Swansea £1m ▪ 2014 Wakefield £1m ▪ 2014 Nottingham £6m ▪ 2015 Slough £9m ▪ 2018 Worthing £13m ▪ 2018 Penrith £2m ▪ 2018 Battersea £1.5m ▪ 2019 and beyond
Slide 125: Economy
Economy 6 • GDP increased by 0.4% in the final quarter of 2017 but the growth rate remains slow amidst Brexit uncertainty. • The employment rate of 74.6% in the UK remains at the highest rate on record but with real wages rising by only 0.1%. • Interest rates remain at 0.5%. An anticipated rise in M
Slide 126: Wholesale Depots Business Mix
Wholesale Depots Business Mix 7 Product Mix Bidcorp Capital Markets Day
Slide 127: Wholesale Depots Business Mix
Wholesale Depots Business Mix 8 Sector Mix Bidcorp Capital Markets Day
Slide 128: Year on Year Volume Mix
Year on Year Volume Mix 9 Bidcorp Capital Markets Day
Slide 129: Customer logos
ae Shestalty coffee bars Ministry . of Justice FIVE GUYS BURGERS and FRIES ae SET « Bidcorp Bidcorp Capital Markets Day elior ©
Slide 130: Technology - Freetrade
Technology - Freetrade 11 Bidcorp Capital Markets Day
Slide 131: Technology - National
Technology - National 12 Bidcorp Capital Markets Day
Slide 132: Service Excellence – Customer Relationship Survey
Service Excellence – Customer Relationship Survey The Service Excellence Mountain (new questions) ‘Bidfood consistently delivers the service I need to make my customers happy’ (the basics) - 81% agree ‘Bidfood delivers a tailored service to suit my business’ (added extras) - 77% agree ‘Bidfood deliv
Slide 133: Service Excellence - Touchpoint Tracker
Service Excellence - Touchpoint Tracker Bidcorp Capital Markets Day
Slide 134: Employee Engagement – 2018 Survey
Employee Engagement – 2018 Survey Bidcorp Capital Markets Day
Slide 135: Employee engagement survey results
ENGAGEMENT INDEX Variance from % Variance from Engagement RESPONSE SCALE POSITIVE 2017 Bidfood bespoke BM Q38. I am proud to work for our company. 34 43 18 77% +2 +12 74% SAY Q39. I would be happy to recommend our company as a good place to work. 31 40 18 7 71% +3 +10 Q40. I would like to still be w
Slide 136: Market Trends… But nothing has actually changed!
Market Trends… But nothing has actually changed! Free trade growth National Margin growth Simplification Organic Acquisitions Own Brand growth Infrastructure investment Bidcorp Capital Markets Day
Slide 137: Freetrade growth
Freetrade growth 18 Bidcorp Capital Markets Day
Slide 138: National Account Cash Margin Growth
National Account Cash Margin Growth 19 Bidcorp Capital Markets Day
Slide 139: Own Brand Growth
Own Brand Growth 20 MAT Own Brand Sales – last 2 years Bidcorp Capital Markets Day
Slide 140: Own Brand Mix
Own Brand Mix 21 Own Brand volume mix – Jul 2015 to April 2018 Bidcorp Capital Markets Day
Slide 141: Simplification
Simplification 22 Structurally Technology Engagement Communication Bidcorp Capital Markets Day
Slide 142: Organic Acquisitions
Organic Acquisitions 23 ??? Bidcorp Capital Markets Day
Slide 143: Doom and Gloom
Doom and Gloom Bidcorp Capital Markets Day
Slide 144: Shifting of market place
Shifting of market place Bidcorp Capital Markets Day
Slide 145: Uncertainty creates opportunity - and opportunity creates prosperity
Uncertainty creates opportunity - and opportunity creates prosperity ▪ Suppliers and manufacturers are the most uncertain group of people at the moment ▪ Their margins will be under pressure, they will face consolidation, they will face restructuring ▪ Bidfood and the hospitality market are a silver
Slide 146: Uncertainty creates opportunity and opportunity creates prosperity
Uncertainty creates opportunity and opportunity creates prosperity Bidcorp Capital Markets Day
Slide 147: The Hospitality market is a place of…
The Hospitality market is a place of… Growth Quality Innovation NPD Service ▪ This can offer manufacturers an alternative, and we are best placed to deliver this ▪ We will translate this opportunity into a structured approach with the key suppliers Bidcorp Capital Markets Day
Slide 148: Uncertain Future – Needs Decisive Action
Uncertain Future – Needs Decisive Action 29 Bidcorp Capital Markets Day
Slide 149: Uncertain Future – Needs Decisive Action
Uncertain Future – Needs Decisive Action ▪ We have an excellent team and a well engaged one ▪ We have growing, loyal customers who appreciate our service ▪ We have excellent relationships with suppliers ▪ We have continual investment in new and improved facilities and technology ▪ We have concrete p
Slide 150: Bidfresh
(@Bidfresh «€ Bidcorp Bidcorp Capital Markets Day
Slide 151: Bidfresh trading overview
▪ A difficult year with considerable fluctuations in month to month trading ▪ The fresh business is significantly more volatile than the traditional business, partly due to the vulnerability of fresh commodities, partly due to the ongoing integration and growth of small businesses and partly due to
Slide 152: Seafood
Seafood ▪ The most mature section of the business and shows the future potential when these businesses are established ▪ Suffered a difficult Q1 – customer downtrading and switching from Salmon, price volatility, reduction of sales and drop size ▪ Despite this the team have adapted well, cut costs a
Slide 153: Produce
Produce ▪ OK having difficulties, Noones stable, Campbells doing well ▪ OK lost a large customer, and the management have struggled with cost removal (too little, too much!) ▪ Stable team now and opening depot in Birmingham to reduce trunking costs ▪ Noones also have some cost issues but also reason
Slide 154: Meat
Meat ▪ Williams and Knights performing reasonably ▪ Issues in the move of Hensons ▪ Hensons had to move to a new facility. ▪ Fantastic property in Woolwich with great facilities and room for growth ▪ New depot, new IT, and had to get 50% new staff – some major issues ▪ Operationally more stable now
Slide 155: Summary
Summary ▪ It’s a growing business, made up of individual growing businesses ▪ It doesn’t have a larger business to hide errors behind, it wears its’ heart on its’ P&L! ▪ By the nature of the businesses we acquire we will go through transition in every acquisition ▪ As we grow in scale the individual
Slide 156: Europe
CBidcorp Europe
Slide 157: Europe - trading conditions and operational performance
Europe - trading conditions and operational performance 2 Segment Overview • The second largest contributor to Group profit for F2018, assisted by good organic growth and acquisitions • Trading margin has improved for the 9 months to March 2018 • Strong like-for-like trading profit growth in constan
Slide 158: Europe - trading conditions and operational performance
Europe - trading conditions and operational performance 3 Belgium • Economic growth steady with projected rates of 1,8% in 2018 and 1,6% into 2019; inflation expected to cool to 1,7% in 2018 • Increasing volumes in Freetrade and Institutional sectors offsets small decline in Catering, overall strong
Slide 159: Europe - trading conditions and operational performance
Europe - trading conditions and operational performance 4 Poland • Economy performing well; benefitting from EU growth, higher local consumption and low interest rates; GDP of 4,6% and inflation of 2,1% • Good performance driven by freetrade growth, customer mix well balanced at 73% freetrade and 27
Slide 160: Europe - trading conditions and operational performance
Europe - trading conditions and operational performance 5 Italy • High business and consumer confidence driving GDP growth; business performing well, scaling up resources to accommodate growth ambitions nationally • Acquisition of horeca specialist D&D wef January 2018 takes annualised turnover to n
Slide 161: Financial Update David Cleasby
Financial Update David Cleasby
Slide 162: Financial Update
Financial Update 7 Financial – continuing operations • Positive earnings momentum maintained year to date, both in rands and constant currency • Quality of earnings remains sound; gross margins have held up overall; some wage pressure in operating costs in growing economies • Net funding costs incre