Bidvest Group Limited · JSE:BVT
Bidvest — The Bidvest Group — H1 2016 Earnings Presentation
64 slides from Bidvest's earnings presentation, February 2016
Slide 1: Investor presentation for the half-year ended December 31 2015
Proudly tomorrow The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015
Slide 2: Slide 2
Slide 3: Unaudited results for the half-year ended December 31 2015
1 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 www.bidvest.com UNAUDITED RESULTS for the half-year ended December 31 2015 Notes
Slide 4: Agenda
2 Agenda 01 The future Brian Joffe – Group CE 02 Bidvest Industrial Lindsay Ralphs – Bidvest Industrial CE 03 Bidvest Foodservice Bernard Berson – Bidvest Foodservice CE 04 Bidvest Financials David Cleasby – Group FD 05 Appendices Included after presentation slides Unaudited results for the half-yea
Slide 5: Brian Joffe, Group CE
3 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Brian Joffe Group CE Notes
Slide 6: The future – proposed unbundling of foodservice business and listing on the JSE
4 The future – proposed unbundling of foodservice business and listing on the JSE Leadership, succession and career opportunity Retain strengths of Bidvest for a new era - proven business model and enabling The reason culture Give shareholders choice – one or the other or a bit of both Foodservice t
Slide 7: Bidvest Industrial
5 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Industrial Lindsay Ralphs – Bidvest industrial CE Notes
Slide 8: The future Bidvest (comprising Industrial, Namibia and Corporate) ex Foodservice assets
6 The future Bidvest (comprising Industrial, Namibia and Corporate) ex Foodservice assets A leading South African services and distribution group operating in the areas of automotive retailing, commercial and industrial products, electrical products, financial services, freight management, office an
Slide 9: Bidvest Industrial
7 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Industrial Lindsay Ralphs – Bidvest Industrial CE Notes
Slide 10: Bidvest Industrial
8 Bidvest Industrial Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 45 263 572 43 881 623 3.1% Trading profit 2 657 183 2 529 180 5.1% Trading margin 5.9% 5.8% General New streamlined structure reflects core business focus and platform for growth New vehicle sales dow
Slide 11: Bidvest Namibia and Bidvest Corporate
9 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Namibia Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 2 045 915 2 049 033 (0.2%) Trading profit 120 662 172 514 (30.1%) Trading margin 5.9% 8.4% Fishing Continued negat
Slide 12: Bidvest Foodservice
10 Bidvest Foodservice Bernard Berson – Bidvest Foodservice CE Notes
Slide 13: The future – proposed unbundling and listing of Foodservice business on the JSE
11 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 The future – proposed unbundling from Bidvest Group and listing of Foodservice business on the JSE One of the top three Foodservice groups outside of America trading across five continents in over 30 countrie
Slide 14: Bidvest Foodservice
12 Bidvest Foodservice Bernard Berson - Bidvest Foodservice CE Notes
Slide 15: Bidvest Foodservice
13 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Foodservice Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 68 223 647 59 545 021 14.6% Trading profit 2 348 680 1 912 490 22.8% Trading margin 3.4% 3.2% Successfully ex
Slide 16: Financials
14 Financials David Cleasby – Group FD Notes
Slide 17: Financial highlights
15 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Financial highlights Half-year Half-year ended ended ZAR Dec 31 2015 Dec 31 2014 Change Turnover 114,4bn 104,4bn +9.6% • South Africa revenue up 3.1%, Foodservice revenue up 14.6% Gross profit % 20.5% 20.1% •
Slide 18: Financial highlights
16 Financial highlights R6bn positive exchange rate impact on translation Turnover Growth primarily organic, no major acquisitions during the period Overall operating expenses well controlled Expenses Excluding currency affects and acquisitions, like-for-like up 5.5% Investment Declined slightly due
Slide 19: Financial highlights
17 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Financial highlights R229,6 million vs R73,5 million – mainly fair value impairment of associates due to MTM Capital Items adjustments; Adcock share price decline could have some further non cash and non head
Slide 20: Appendix 1: Bidvest segment profits detail
18 Appendix 1 Bidvest segment profits detail Notes
Slide 21: Segment profits detail – Half-year ended December 31
19 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Segment profits detail – Half-year ended December 31 2015 Trading Share 2014 Trading Share ZAR’000 Profit Margin of Group Change Profit Margin of Group Bidvest South Africa 2 657 183 5.9% 51.5% 5.1% 2 529 180
Slide 22: Appendix 2: Segmental results analysis – Bidvest Industrial
20 Appendix 2 Segmental results analysis – Bidvest Industrial Notes
Slide 23: Bidvest Industrial – Overview
21 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Industrial – Overview Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 45 263 572 43 881 623 3.1% Trading profit 2 657 183 2 529 180 5.1% Trading margin 5.9% 5.8% • In a
Slide 24: Bidvest Industrial – Automotive
22 Bidvest Industrial – Automotive Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 12 149 439 12 282 452 (1.1%) Trading profit 357 814 384 735 (7.0%) Trading margin 3.0% 3.1% • New vehicle GP unchanged and employee productivity improved despite market pricing and volum
Slide 25: Bidvest Industrial – Commercial
23 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Industrial – Commercial Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 2 942 439 2 163 529 36.0% Trading profit 250 894 182 748 37.3% Trading margin 8.5% 8.4% • Compris
Slide 26: Bidvest Industrial – Electrical
24 Bidvest Industrial – Electrical Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 2 682 768 2 600 376 3.2% Trading profit 138 965 121 915 14.0% Trading margin 5.2% 4.7% • Important markets of mining and agriculture are in decline whilst building contractors are under
Slide 27: Bidvest Industrial – Financial Services
25 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Industrial – Financial Services Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 1 509 218 907 864 66.2% Trading profit 264 671 253 591 4.4% Trading margin 17.5% 27.9% •
Slide 28: Bidvest Industrial – Financial Services (continued)
26 Bidvest Industrial – Financial Services (continued) Insurance • Gross written premium income up 7.2% with gross revenue up 8.6% and net written premium income up 8.4% • Growth derived from Theft Buster product, travel insurance, annuity income and launch of commercial channel in November • Profit
Slide 29: Bidvest Industrial – Freight
27 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Industrial – Freight Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 14 673 677 14 423 680 1.7% Trading profit 512 397 566 893 (9.6%) Trading margin 3.5% 3.9% • Bulk vol
Slide 30: Bidvest Industrial – Office and Print
28 Bidvest Industrial – Office and Print Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 5 151 750 4 977 947 3.5% Trading profit 415 325 333 133 24.7% Trading margin 8.1% 6.7% • Combines Office and Paperplus segments • Konica Minolta achieved an improved profit in a co
Slide 31: Bidvest Industrial – Services
29 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Industrial – Services Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 6 154 750 6 525 775 (5.7%) Trading profit 717 117 686 165 4.5% Trading margin 11.7% 10.5% • Combine
Slide 32: Bidvest Industrial – Services (continued)
30 Bidvest Industrial – Services (continued) Industrial • BidAir performed especially well on new business wins and better rates • Premier Lounge is refreshing the offering to good effect • Cargo is benefitting from the Imperial acquisition with improved mix • TMS is trading satisfactorily in a toug
Slide 33: Bidvest Industrial – Namibia
31 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Industrial – Namibia Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 2 045 915 2 049 033 (0.2%) Trading profit 120 662 172 514 (30.1%) Trading margin 5.9% 8.4% Fishing •
Slide 34: Bidvest Industrial – Namibia (continued)
32 Bidvest Industrial – Namibia (continued) Automotive • Novel contributed positively wef 1 July 2015 but the market is in a challenging position Commercial and Industrial Services • A mixed performance with results flat overall Outlook • The fishing quota situation remains very concerning with impl
Slide 35: Appendix 3: Segmental results analysis – Bidvest Foodservice
33 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Appendix 3 Segmental results analysis – Bidvest Foodservice Notes
Slide 36: Bidvest Foodservice – Overview
34 Bidvest Foodservice – Overview Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 68 223 647 59 545 021 14.6% Trading profit 2 348 680 1 912 490 22.8% Trading margin 3.4% 3.2% • Segment revenue grew by 4.3% and trading profit by 14.0% in constant currency – Australasia
Slide 37: Bidvest Foodservice – Australasia
35 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Foodservice – Australasia Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 14 568 000 14 869 713 (2.0%) Trading profit 751 935 680 916 10.4% Trading margin 5.2% 4.6% Aust
Slide 38: Bidvest Foodservice – United Kingdom
36 Bidvest Foodservice – United Kingdom Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 30 367 309 23 847 713 27.3% Trading profit 717 725 521 480 37.6% Trading margin 2.4% 2.2% • Better than budgeted Foodservice volume and sales resulted in improved customer margin pe
Slide 39: Bidvest Foodservice – Europe
37 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Foodservice – Europe Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 14 432 427 12 722 872 13.4% Trading profit 435 012 341 078 27.5% Trading margin 3.0% 2.7% Netherland
Slide 40: Bidvest Foodservice – Europe (continued)
38 Bidvest Foodservice – Europe (continued) Baltics • Strong growth in foodservice sales as retail proportion slowly diminishes • Expanding product portfolio and customer base DAC Italy • Revenue and profit well above budget stimulated by street trade and demand in ambient and frozen • Investment in
Slide 41: Bidvest Foodservice – Emerging Markets
39 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Bidvest Foodservice – Emerging Markets Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 8 855 911 8 105 002 9.3% Trading profit 444 008 369 007 20.3% Trading margin 5.0% 4.6% Foo
Slide 42: Bidvest Foodservice – Emerging Markets (continued)
40 Bidvest Foodservice – Emerging Markets (continued) Brazil • Adapting to a shrinking economy with high inflation, weak currency and escalating joblessness • Regionalised sales structures, sales staff reorganisation, tight credit control, targeted market research going to plan • Growth in normalise
Slide 43: Appendix 4: Segmental results analysis – Bidvest Corporate
41 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Appendix 4 Segmental results analysis – Bidvest Corporate Notes
Slide 44: Bidvest Corporate
42 Bidvest Corporate Half-year ended Half-year ended R’000s Dec 31 2015 Dec 31 2014 Change Turnover 923 723 817 951 12,9 Trading profit 30 864 7 275 324.2 Trading margin 2.5% 0.9% • Bidvest Properties continues to develop and refurbish premises for Bidvest operations and provide accommodations with
Slide 45: Appendix 5: Bidvest Financial Analysis
43 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Appendix 5 Bidvest Financial Analysis Notes
Slide 46: Consolidated Income Statement
44 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% • R6bn exchange rate impact on Turnover on translation • Major translation impacts arise in Bidvest Europe, Bidvest UK and
Slide 47: Consolidated Income Statement
45 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 62
Slide 48: Consolidated Income Statement
46 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 621,4 4 986,3 7.9% Net finance expense (601,5) 3.9% (578,8) (594,8) 2.8% • Exposure to the
Slide 49: Consolidated Income Statement
47 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 62
Slide 50: Consolidated Income Statement
48 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 621,4 4 986,3 7.9% Net finance expense (601,5) 3.9% (578,8) (594,8) 2.8% Associate Income 9
Slide 51: Consolidated Income Statement
49 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 62
Slide 52: Consolidated Income Statement
50 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 621,4 4 986,3 7.9% Net finance expense (601,5) 3.9% (578,8) (594,8) 2.8% Associate Income 9
Slide 53: Consolidated Income Statement
51 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 62
Slide 54: Consolidated Income Statement
52 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 621,4 4 986,3 7.9% Net finance expense (601,5) 3.9% (578,8) (594,8) 2.8% Associate Income 9
Slide 55: Consolidated Income Statement
53 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Consolidated Income Statement 2015 Half-year ended December 31 2015 2014 Constant Currency @ Rm R/£ 20,86 R/£ 17,89 R/£ 17,89 Turnover 114 446,5 9.6% 104 436,5 108 233,9 3.6% Trading profit 5 157,4 11.6% 4 62
Slide 56: Consolidated cash flow statement
54 Consolidated cash flow statement Half-year ended Dec 31 2015 Half-year ended Dec 31 2014 R bn R bn 6.4 Cash generated from ops pre wc 6.0 -3.5 Working capital utilised -2.4 -0.6 Net Finance charges -0.6 -1.1 Taxation -1.1 -1.7 Distributions -0.5 -3.4 Cash effects of investment act’s -3.9 1.5 Cash
Slide 57: Net working capital days
55 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Net working capital days 12 16 11 14 10 18 Net days 33 34 34 33 35 37 Debtors days 35 35 33 38 33 41 Inventory days Creditors days -56 -53 -56 -57 -58 -60 2013 H1 2014 2014 H1 2015 2015 H1 2016 Net working ca
Slide 58: Net working capital flows vs cash generated
56 Net working capital flows vs cash generated Net working capital Cash generated by operations 8.0 6,4 6,0 6.0 5,2 5,5 4,9 4,9 4.0 2,3 Rbn 2.0 1,7 0,7 0.0 -2.0 -2,2 -2,4 -4.0 -3,5 2013 H1 2014 2014 H1 2015 2015 H1 2016 • Working capital continuing a well established cycle, impacted by Rand replacem
Slide 59: Gearing
57 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Gearing Net interest-bearing debt (Rbn) Interest cover (x) 14.0 10.0 10.0 12.0 9.0 8.5 8.5 8.6 8.6 8.0 8.0 10.0 7.0 8.0 Target interest cover range 6.0 6.0 12,0 10,4 5.0 4.0 8,2 7,9 7,8 4.0 2.0 4,5 3.0 0.0 2.
Slide 60: Appendix 7: Bidvest Historical Results
58 Appendix 7 Bidvest Historical Results Notes
Slide 61: Historic Performance – to December 2015
59 The Bidvest Group Limited Investor presentation for the half-year ended December 31 2015 Historic Performance – to December 31 2015 Trading Profit and Trading Margin Returns (annual) 12 000 35 10 000 30 25 30 8 000 28 5.0% 5.0% 26 Rm 25 % 5.3% 20 6 000 5.6% 22 5.3% 15 19 4 000 17 17 10 2 000 4.9%
Slide 62: Notes
60 Notes
Slide 63: Bastion Graphics
BASTION GRAPHICS
Slide 64: www.bidvest.com
www.bidvest.com