Slide 1: Audited Financial Results for the year ended June 30 2022
AUDITED FINANCIAL RESULTS for the year ended June 30 2022 Notes 1 Bid Corporation Limited Investor Presentation for the year ended June 30 2022
Slide 2: Bidcorp Strategy
BIDCORP STRATEGY A well-established, flexible, financially robust, and resilient foodservice business model Bidcorp is a complete foodservice solution serving customers in 35 countries Bidcorp people are entrepreneurial and incentivised to be so Bidcorp runs as a decentralised group with best practi
Slide 3: Agenda
AGENDA Bernard Berson, CEO F2022 in perspective Bernard Berson, CEO Trading analysis and outlook David Cleasby, CFO Financial analysis Q&A Supplementary information Audited Financial Results for the year ended June 30 2022 3 Notes 3 Bid Corporation Limited Investor Presentation for the year ended Ju
Slide 4: F2022 in Perspective
F2022 IN PERSPECTIVE Bernard Berson Notes Bid Corporation Limited Investor Presentation for the year ended June 30 2022 4
Slide 5: Bidcorp HEPS of 1538 cents up 77% on F2021
BIDCORP HEPS OF 1538 CENTS UP 77% ON F2021 AND 10% UP ON PRE-PANDEMIC F2019 Bidcorp ended the year with a debt to equity ratio of only 5,5% after investing R4 billion in our businesses and on acquisitions Financial and operational highlights • Credit to a superb team who have performed, against seem
Slide 6: Trading Analysis
TRADING ANALYSIS Bernard Berson Notes Bid Corporation Limited Investor Presentation for the year ended June 30 2022 6
Slide 7: Trading Performance | Australasia
TRADING PERFORMANCE | AUSTRALASIA Revenue R33,3bn (+4,9% in CC vs. +1,9% in H1), trading profit R2,3bn (-2,7% in CC vs. -6,9% in H1) - Australia only opened fully from November 2021 whilst New Zealand was beset by COVID disruption for most of the year; provided no further restrictions F2023 outlook
Slide 8: Trading Performance | United Kingdom
TRADING PERFORMANCE | UNITED KINGDOM Revenue R37,8bn (+55,1% in CC vs. +42,4% in H1), trading profit R1,5bn (+297,9% in CC vs. +104,5% in H1) H2 trading profit exceeded H2 F2019 in GBP with current run-rate on track to beat the pre-pandemic high at similar margin Foodservice (GBP) UNITED KINGDOM • S
Slide 9: Trading Performance | Europe
TRADING PERFORMANCE | EUROPE Revenue R50,1bn (+49,0% in CC vs. +34,9% in H1), trading profit R2,4bn (+130,6% in CC vs. +180,2% in H1) In total the region is well above F2019 level of trading profit and margin and in better shape post-pandemic, with Spain and Germany improving Europe Netherlands (EUR
Slide 10: Trading Performance | Europe
TRADING PERFORMANCE | EUROPE Revenue R50,1bn (+49,0% in CC vs. +34,9% in H1), trading profit R2,4bn (+130,6% in CC vs. +180,2% in H1) In total the region is well above F2019 level of trading profit and margin and in better shape post-pandemic, with Spain and Germany improving Poland (PLN) Spain (EUR
Slide 11: Trading Performance | Emerging Markets
TRADING PERFORMANCE | EMERGING MARKETS Revenue R25,9bn (+24,6% in CC vs. +26,8% in H1), trading profit R1,4bn (+57,4% in CC vs. +88,6% in H1) South Africa a standout performer but all other businesses contributed to a commendable performance in difficult circumstances Emerging Markets South Africa (
Slide 12: Trading Performance | Emerging Markets
TRADING PERFORMANCE | EMERGING MARKETS Revenue R25,9bn (+24,6% in CC vs. +26,8% in H1), trading profit R1,4bn (+57,4% in CC vs. +88,6% in H1) South Africa a standout performer but all other businesses contributed to a commendable performance in difficult circumstances Mainland China (RMB) Brazil (BR
Slide 13: Outlook
OUTLOOK The pandemic is seemingly in the rear view mirror in almost all jurisdictions Bidcorp people provide a comprehensive but we cannot be complacent foodservice solution to a growing customer base in Africa, Asia, Australasia, The Ukrainian conflict is a destabilising factor that affects not jus
Slide 14: Financial Analysis
FINANCIAL ANALYSIS David Cleasby Notes Bid Corporation Limited Investor Presentation for the year ended June 30 2022 14
Slide 15: Underlying Financial Performance Solid
UNDERLYING FINANCIAL PERFORMANCE SOLID Strong recovery in activity delivered an excellent financial performance Highlights EBITDA (R’ billion) Trading profit (R’ billion) • Revenue of R147,1 billion (↑28,2%) 7,6 8,6 6,7 • Gross margin improved to 24,2% (F2021: 24,0% and F2019: 23,9%) 8,0 4,8 • Non-I
Slide 16: Statement of Profit
STATEMENT OF PROFIT Quality of earnings good, despite difficult operating conditions Total expenses % • Revenue of R147,1 billion (F2021: R114,8 billion) is higher by 28,2% (constant Gross profit % currency improvement of 33,1%). In most geographies, we have seen a strong 20,8% recovery in demand in
Slide 17: Statement of Profit
STATEMENT OF PROFIT Quality of earnings good, despite difficult operating conditions • EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) was Non-IFRS 16 interest Effective tax rate % equivalent to 5,9% of revenue, higher than F2021 of 5,1%, but slightly lower than (R’ million) E
Slide 18: Cash Flows
CASH FLOWS More normalised cash flow cycle with higher investments into working capital, capex investments, and higher dividends • Cash generated from operations before working capital of R9,9 billion (F2021: R7,0 billion); cash generation by operations for F2022; split R4,5 billion in H1 F2022 and
Slide 19: Financial Position
FINANCIAL POSITION Financial position remains strong • Balance sheet remains strong with reliable cash flows which allows flexibility to Equity R' billion Net debt R' billion achieve strategic growth objectives, organic and acquisitive 32.0 30,8 20.0 19.5 19.0 18.5 18.0 17.5 • Shareholders equity in
Slide 20: Financial Guidance
FINANCIAL GUIDANCE Sound financial position supportive of continued growth into F2023 • Group sales tracking well into July and August 2022, benefitting from the Northern Hemisphere summer, but the impact of ongoing inflation and energy crisis in Europe (and the UK) over the Northern Hemisphere wint
Slide 21: Q&A
Q&A Notes 21 Bid Corporation Limited Investor Presentation for the year ended June 30 2022
Slide 22: Supplementary Information: Segment Profits Detail
SUPPLEMENTARY INFORMATION Segment profits detail Notes Bid Corporation Limited Investor Presentation for the year ended June 30 2022 22
Slide 23: Segmental Revenue
SEGMENTAL REVENUE Constant Revenue share of group change Revenue share of group Currency change R’ million F2022 % % F2021 % F2022 % Australasia 33 343,4 22,7 1,0 33 010,2 28,8 34 624,8 4,9 United Kingdom 37 818,9 25,7 51,5 24 955,4 21,7 38 703,2 55,1 Europe 50 077,1 34,0 40,2 35 706,2 31,1 53 189,1
Slide 24: Segmental Trading Profit
SEGMENTAL TRADING PROFIT share of share of Constant margin group change margin group Currency change R’ million F2022 % % % F2021 % % F2022 % Bidfood 7 687,5 4 893,6 7 948,7 Australasia 2 330,9 7,0 30,7 (6,4) 2 489,7 7,5 52,0 2 421,7 (2,7) United Kingdom 1 533,2 4,1 20,2 288,8 394,3 1,6 8,2 1 569,1
Slide 25: Supplementary Information: Financial Analysis
SUPPLEMENTARY INFORMATION Financial analysis Notes 25 Bid Corporation Limited Investor Presentation for the year ended June 30 2022
Slide 26: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Constant Currency R’ million F2022 F2021 F2022 Revenue 147 138,3 28,2 114 803,4 152 840,5 33,1 Segmental revenue • Bidfood UK: R37,8 billion (ZAR movement: ↑51,5%; Local FX: ↑55,1%) • Bidfood Europe: R50,1 billion (ZAR movement: ↑40,2%; Local FX: ↑49,0%) • Bi
Slide 27: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Green = 2023 Blue = 2022 The illustrations reflect the group’s weekly sales in constant currency for 2021, 2022, and YTD 2023 Grey = 2021 Month Australasia Europe Emerging Markets United Kingdom Group Group Europe F2022 % of F2021 April 110,4% 194,6% 122,6% 1
Slide 28: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Constant Currency R’ million F2022 F2021 F2022 Revenue 147 138,3 28,2 114 803,4 152 840,5 33,1 Gross profit % 24,2 1,1 24,0 Segmental gross margins • Bidfood Australasia 23,7% from 23,0% (F2021) • Bidfood UK 24,9% from 26,0% (F2021) • Bidfood Europe 25,0% fro
Slide 29: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Constant Currency R’ million F2022 F2021 F2022 Revenue 147 138,3 28,2 114 803,4 152 840,5 33,1 Trading profit 7 590,8 58,5 4 787,7 7 850,5 64,0 Trading margins 5,2 23,7 4,2 Non-IFRS 16 EBITDA 8 644,8 46,4 5 905,5 8 943,5 51,4 • Operating costs as a % of reven
Slide 30: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Constant Currency R’ million F2022 F2021 F2022 Revenue 147 138,3 28,2 114 803,4 152 840,5 33,1 Trading profit 7 590,8 58,5 4 787,7 7 850,5 64,0 Net finance expense (689,8) 0,5 (693,4) (716,8) (3,4) • Constant currency net finance charges (excluding IFRS 16 ch
Slide 31: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Constant Currency R’ million F2022 F2021 F2022 Revenue 147 138,3 28,2 114 803,4 152 840,5 33,1 Trading profit 7 590,8 58,5 4 787,7 7 850,5 64,0 Net finance expense (689,8) 0,5 (693,4) (716,8) (3,4) Share of profit of associates and JVs 39,7 32,8 29,9 39,9 33,
Slide 32: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Constant Currency R’ million F2022 F2021 F2022 Revenue 147 138,3 28,2 114 803,4 152 840,5 33,1 Trading profit 7 590,8 58,5 4 787,7 7 850,5 64,0 Net finance expense (689,8) 0,5 (693,4) (716,8) (3,4) Share of profit of associates and JVs 39,7 32,8 29,9 39,9 33,
Slide 33: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Constant Currency R’ million F2022 F2021 F2022 Revenue 147 138,3 28,2 114 803,4 152 840,5 33,1 Trading profit 7 590,8 58,5 4 787,7 7 850,5 64,0 Net finance expense (689,8) 0,5 (693,4) (716,8) (3,4) Share of profit of associates and JVs 39,7 32,8 29,9 39,9 33,
Slide 34: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION • Investment in PPE infrastructure R’ million F2022 F2021 • Expansionary capital expenditure accounted for R1,6 billion which related to infrastructure capex (through upgrades to (or new) distribution centres including the fit out of plant and equipment).
Slide 35: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS F2022 (R’ billion) F2021 (R’ billion) Cash generated from ops pre-working capital 9,9 7,0 Working capital (utilised) generated (2,0) 0,6 (0,6) (0,6) Net finance charges (1,5) (1,2) Taxation (2,4) Dividends paid (3,4) (0,3) Cash effects of investment act’s (0,8) (
Slide 36: Cash Generated by Operations, Net Working Capital, and Cash Conversion
CASH GENERATED BY OPERATIONS, NET WORKING CAPITAL, AND CASH CONVERSION Working capital vs. % Cash conversion of CGO % Cash conversion of CGO Cash generated by operations (before working capital) before working capital after working capital Net working capital Cash generated by operations EBITDA Trad
Slide 37: Net Working Capital Days
NET WORKING CAPITAL DAYS 13-Month rolling average working capital days June month-end working capital days 7 7 (3) 1 Net days 40 38 36 36 Debtors days 41 39 38 38 Stock days (74) (70) (73) Creditors days (77) F2021 F2022 F2021 F2022 • 13-month rolling average working capital days remained constant a
Slide 38: Gearing
GEARING Current EBITDA : net debt covenant – Net debt to be lower than R21,6 billion Net interest-bearing debt (R' billion) EBITDA interest cover (x) 15.0 30.0 28,0 13.0 25,7 24,0 25,4 25.0 11.0 19,3 20.0 9.0 15,8 15,5 7.0 15.0 5.0 10.0 3.0 5.0 1.0 4,7 5,1 5,6 2,6 0,5 2,4 1,7 -1.0 F2019 H1 F2020 F20
Slide 39: Hyperinflation Accounting - Turkey
HYPERINFLATION ACCOUNTING - TURKEY The International Monetary Fund World Economic Outlook Report determined that Hyperinflation increase (decrease) to the statement of profit or loss subsidiaries of the group with the functional currency of the Turkish lira should apply Financial Reporting in Hyperi
Slide 40: Supplementary Information: Bidcorp Historical Results
SUPPLEMENTARY INFORMATION Bidcorp historical results Notes Bid Corporation Limited Investor Presentation for the year ended June 30 2022 40
Slide 41: Bidcorp Historic Performance
BIDCORP HISTORIC PERFORMANCE Trading margin Annual operations returns % ROFE ROE 62,8 54,9 49,4 42,3 % 27,7 5,07 5,16 5,16 % 4,97 4,17 16,6 16,1 16,3 3,66 3,37 11,0 4,6 PF 2016 F2017 F2018 F2019 F2020 F2021 F2022 F2018 F2019 F2020 F2021 F2022 ROFE excludes freehold property Headline earnings per sha
Slide 42: Audited Financial Results
AUDITED FINANCIAL RESULTS for the year ended June 30 2022 Notes Bid Corporation Limited Investor Presentation for the year ended June 30 2022 42