Bidvest Group Limited · JSE:BVT
Bidvest — Investor Presentation (2009)
44 slides from Bidvest's investor presentation, 2009
Slide 1: Revenue and trading profit by geography
Appendix pp 1 Revenue and trading profit by geography 1
Slide 2: Revenue and Trading Profit by geography
Revenue and Trading Profit by geography Appendix 1 F2009 F2008 52% 57% 33% 31% Revenue SA 15% 13% Asia Pacific 14% 16% Trading Profit 12% 74% 74% UK & Europe 10% Revenue Trading Profit Contribution F2009 F2008 F2009 F2008 Foreign Foodservice operations 48% 44% 32% 30% SA operations 52% 56% 68% 70% N
Slide 3: Segmental contributions to results
Segmental contributions to results Appendix 1 % % Contribution Contribution Segment to to Revenue Trading Profit Bidfreight 16.2 15.0 Bidserv 6.3 18.2 International Foodservices 47.0 26.7 Bidfood (SA) 4.3 7.5 Bid Industrial and Commercial 8.1 11.5 Bidpaper Plus 1.7 4.3 Bid Auto 14.3 9.8 Bidvest Nami
Slide 4: Segmental results + strategic imperatives and prospects
Appendix pp 2 Segmental results + strategic imperatives and prospects 4
Slide 5: Bidfreight – faring well in the squalls
Bidfreight – faring well in the squalls Appendix 2 Current contribution to Group Trading Profit 15.0% 5
Slide 6: Bidfreight – faring well in the squalls
Bidfreight – faring well in the squalls Appendix 2 Results X Excellent result from IVS, solid contributions from Bulk Revenue -15.2% Terminals Marine and Manica Terminals, T di Profit Trading P fit +11.2% 11 2% X Debtors under scrutiny to minimise bad debt risk X NPA lease resolution for SACD in Cap
Slide 7: Bidfreight – faring well in the squalls
Bidfreight – faring well in the squalls Appendix 2 X Bulk Connections: a weak year for commodities but Q4 picked up to normalised levels; Durban lease negotiations to extend term, obtain more product handling rights, and develop new facilities continue X BidFreight BidF i h Port P Operations: O i f
Slide 8: Bidserv – hard currency
Bidserv – hard currency Appendix 2 Current contribution to Group Trading Profit 18.2% 8
Slide 9: Bidserv – hard currency
Bidserv – hard currency Appendix 2 Results X Largest single segment contributor to group profits in 2009 Revenue +13.1% X Bidvest Bank now the largest contributor to Bidserv Bidserv, more than T di Profit Trading P fit +11.4% 11 4% doubling its percentage profit contribution in four years X Trading
Slide 10: Bidserv – hard currency
Bidserv – hard currency Appendix 2 X Industrial: profits up 18%; G Fox roll-out a success and expansion is underway, recently opened cash & carryy outlet in Durban X Prestige: profits up 10% assisted by new business gains X Office – Konica Minolta & Oce: profitability under pressure as customer cape
Slide 11: Bidvest Europe – deli excels
Bidvest Europe – deli excels Appendix 2 Current contribution to Group Trading Profit 15.0% 11
Slide 12: Bidvest Europe – deli excels
Bidvest Europe – deli excels Appendix 2 Results X DeliXL in Netherlands and Belgium strongly to the fore as UK Revenue +18.0% comes off the boil contributing 45% of total profits profits, up from 25% T di Profit Trading P fit -12.5% 12 5% X UK recession exposed certain weaknesses at 3663 which have
Slide 13: Bidvest Europe – deli excels
Bidvest Europe – deli excels Appendix 2 X Horeca: £0.5m profit (£0.2m); ROS 3.9% vs. 2.7%. Sales in local currency rise 42% and profits by 81% due to regional g diversification awayy from Dubai base X 3663: sales 6.8% up at £1.695bn; profits down 30% to £32.8m; ROS 1.9% vs. 2.9%; substantial costs i
Slide 14: Bidvest Asia Pacific – billy on the boil
Bidvest Asia Pacific – billy on the boil Appendix 2 Current contribution to Group Trading Profit 11.7% 14
Slide 15: Bidvest Asia Pacific – billy on the boil
Bidvest Asia Pacific – billy on the boil Appendix 2 Results X Record results for Australia and New Zealand in testing times Revenue +18% X Hong Kong held up well, Singapore bounced back strongly in T di Profit Trading P fit +9.3% 9 3% Q4 Trading Profit Trading Margin X Australia: sales up 12% to A$1
Slide 16: Bidvest Asia Pacific – billy on the boil
Bidvest Asia Pacific – billy on the boil Appendix 2 ¾ New Zealand: sales up 12% to NZ$430.8m, profits up 16.5% to NZ$19.6m; ROS 4.6% vs. 4.4%; continued market share gains in a declining economy; provisions increased to cover increased debtor default risk; capex focused on Christchurch distribution
Slide 17: Bidfood – the right ingredient
Bidfood – the right ingredient Appendix 2 Current contribution to Group Trading Profit 7.5% 17
Slide 18: Bidfood – the right ingredient
Bidfood – the right ingredient Appendix 2 Results X Businesses demonstrate adaptability and resilience in a Revenue +12.1% d li i market declining k t with ith allll categories t i iin th the ffoodd channel h l under d T di Profit Trading P fit +7.1% 7 1% stress Trading Profit Trading Margin X Cater
Slide 19: Bidfood – the right ingredient
Bidfood – the right ingredient Appendix 2 X Ingredients: business conditions proved less favourable in H2; bad debt provisions increased and volumes were affected byy destocking; g; NCP Yeast pprofits were down as a result of an inabilityy to ppass through high input prices quickly enough but this s
Slide 20: Bid Industrial & Commercial Products - down to earth
Bid Industrial & Commercial Products - down to earth Appendix 2 Current contribution to Group Trading Profit 11.5% 20
Slide 21: Bid Industrial and Commercial Products - down to earth
Bid Industrial and Commercial Products - down to earth Appendix 2 Results X After a record run of bumper profits the segment was unable Revenue -1% to withstand the recessionary forces in key sectors T di Profit Trading P fit -25% 25% served, with electrical wholesaling division particularly hard hi
Slide 22: Bid Industrial and Commercial Products - down to earth
Bid Industrial and Commercial Products - down to earth Appendix 2 X Packaging: ¾ Afcom GE Hudson profits were flat for the year as trading deteriorated in H2 ¾ Buffalo Executape, after a strong H1, recorded a small decline in profits; asset management good ¾ Vulcan: profits up 8%, assisted by a good
Slide 23: Bidpaper Plus – just the ticket
Bidpaper Plus – just the ticket Appendix 2 Current contribution to Group Trading Profit 4.3% 23
Slide 24: Bidpaper Plus – just the ticket
Bidpaper Plus – just the ticket Appendix 2 Results X Performances varied within the segment but a flat result overall in Revenue +0% a market with reduced volumes and pressure on pricing T di Profit Trading P fit +1% 1% X Personalisation and Mail, Wholesale Stationery Distribution, Electronic Commun
Slide 25: BidAuto – bottom gear
BidAuto – bottom gear Appendix 2 Current contribution to Group Trading Profit 9.8% 25
Slide 26: BidAuto – bottom gear
BidAuto – bottom gear Appendix 2 Results X Deterioration in performance a function of the slump in the Revenue -11% automotive sector plus substantial losses on new projects T di Profit Trading P fit -32.3% 32 3% X Import & Distribution division, including cars, heavy equipment and Yamaha, incurred
Slide 27: BidAuto – bottom gear
BidAuto – bottom gear Appendix 2 X Working capital improved with inventory reduced satisfactorily Strategic imperatives & prospects X Despite the most abrupt reversal of fortunes in many a year the rationale for exposure in this industry is unchangedg X McCarthy bought for R1bn effective January 200
Slide 28: Bidvest Namibia – a place in the sun
Bidvest Namibia – a place in the sun Appendix 2 Current contribution to Group Trading Profit 5.7% 28
Slide 29: Bidvest Namibia – a place in the sun
Bidvest Namibia – a place in the sun Appendix 2 Results X Bidvest Namibia to list separately in October 2009 on the Revenue +17.4% Namibian Stock Exchange and Bidvest will dilute to T di Profit Trading P fit +80.0% 80 0% accommodate BEE and other shareholders but retain a majority stake Trading Prof
Slide 30: Bidvest Namibia – a place in the sun
Bidvest Namibia – a place in the sun Appendix 2 X Cecil Nurse furniture up 38%, assisted by an Angolan contract X Kolok up 68%, 68% assisted by currency effects in H1; margin pressure in market for printer consumables and computer peripherals. X Waltons up 35% on good demand for a quality range of p
Slide 31: Corporate – a real estate
Corporate – a real estate Appendix 2 Current contribution to Group Trading Profit 1.3% 31
Slide 32: Corporate – a real estate
Corporate – a real estate Appendix 2 Results X Bidvest’s strategic property holdings contributed a Trading Profit substantial R145m in income, up 47% X Procurement contract with MATCH Hospitality and MATCH Services makes Bidvest the preferred supplier 100 to the largest 2010 World Cup service provid
Slide 33: Historic performance
Appendix pp 3 Historic performance 33
Slide 34: Historic Performance – year to June
Historic Performance – year to June Appendix 3 Trading Profit Margins Returns 6000 60 5000 50 5 1% 5.1% 53 54 4000 40 50 5.1% 5.1% 4.8% 42 3000 5.2% 30 Rm 5.2% % 32 35 20004.9%4.9% 5.2% 5.2% 20 31 30 31 4.6% 4.4% 4.4% 4.3% 4.3% 20 4.4% 4.7%4.7% 4.5% 10 1000 4.5% 0 0 2004 2005 2006 2007 2008 2009 200
Slide 35: Nowako/Farutex acquisition information
Appendix pp 4 Nowako/Farutex acquisition information 35
Slide 36: Why?
Why? Why? X Strategic opportunity in Central and Eastern Europe X Foodservice supplemented by two leading consumer brands brands, NOWACO and PRIMA with category leadership in frozen foods and ice cream X In line with strategy to deepen foodservice exposure X Catchment population of 54m in Czech Repu
Slide 37: The 123 of the deal
The 123 of the deal Numbers X Bidvest purchasing 100% of the issued shares from private equity vendors for an enterprise value €250m (R2.75bn) X Financed equally between debt and equity X Effective from a cash point of view 1 July 2009 X Immediately EPS accretive +/- 40cps or 4% X Combined revenue €
Slide 38: Nowaco the business and its market
Nowaco the business and its market Nowaco Distribution and production Distribution X Distribution division sources and distributes range of food products to foodservice, independent retail and international retail clients X Czech’s C h’ distribution di t ib ti network t k ddelivers li bbetween t 550
Slide 39: Nowaco the business and its markets
Nowaco the business and its markets Nowaco X Largest market Czech Republic, significant growth potential in Slovakia and Hungary X Group G operates t iin ttwo consumer endd markets: k t ffoodservice d i andd retail t il Foodservice X Nowaco Czech is leader in the delivered wholesale market with a 26
Slide 40: Nowaco the business and its markets
Nowaco the business and its markets Nowaco Retail X Retail R t il supply l ffocusedd on ffrozen ffoodd andd iice cream, comprising i i 85% off retail t il sales l iin Czech and Slovakia X Sales to independent retailers two thirds of overall retail sales X PRIMA ice cream has successfully grown its m
Slide 41: Nowaco growth strategy
Nowaco growth strategy Nowaco Key areas of focus include the following: X Maintain M i t i andd bbuild ild on strength t th iin ffrozen ddelivered li d wholesale h l l X Expanding the product offering X Continued branded sales g g roll-out of complementary growth through p y labels in Czech Republic
Slide 42: Farutex the business and its markets
Farutex the business and its markets Farutex X Operates as a delivered wholesaler of a broad range of products to foodservice customers across Poland X Only Polish delivered wholesaler with truly national distribution platform X Market leader with approximately 7% share (up from 3% in 2006) X Source
Slide 43: Farutex the business and its markets
Farutex the business and its markets Farutex X Operates solely in the foodservice market with diversified customer base including hotels, restaurants, fast food chains, petrol forecourts and coffee houses X Growth of 2.1% p.a. in the total foodservice meals in Poland anticipated X Main drivers of gr
Slide 44: Farutex growth strategy
Farutex growth strategy Farutex Key areas of focus include the following: X Increased I d customer t penetration t ti X Broadening of distribution network by opening multiple new depots X Increased p product offeringg X More effective use of truck fleet, including increased drops per truck per day 4