Bidvest Group Limited · JSE:BVT
Bidvest — The Bidvest Group — FY2013 Earnings Presentation
45 slides from Bidvest's earnings presentation, 2013
Slide 1: Appendix 1: Bidvest segment profits detail
Appendix 1 Bidvest segment profits detail www.bidvest.com
Slide 2: Segment profits detail
Segment profits detail The Bidvest Group Limited 2013 2012 Trading % Share of Trading % Share of ZAR’000 profit Margin Group profit Margin Group Bidvest South Africa 4,223,653 6.1 55.0% 3,822,564 6.1 54.5% Automotive 640,956 3.1 8.4% 502,365 2.6 7.2% Electrical 224,614 5.0 2.9% 207,554 4.8 3.0% Fina
Slide 3: Appendix 2: Segmental results analysis – Bidvest South Africa
Appendix 2 Segmental results analysis – Bidvest South Africa www.bidvest.com
Slide 4: Automotive – streamlining
Automotive – streamlining The Bidvest Group Limited Features of the past year • Franchise rationalisation • Pre-owned dealer network launched • OEMs pushing stock and incentives • Return on sales matched objective • McCarthy Motor Group new vehicle unit sales of 42 282 – Dealer units in South Africa
Slide 5: Electrical – consolidating
Electrical – consolidating The Bidvest Group Limited Features of the past year • Consolidation of regions and investment in branding, modernisation and specialisation • Selective management changes and implementation of succession plans • Improved GP and tight expense control resulted in an enhancem
Slide 6: Financial Services – a currency card
Financial Services – a currency card The Bidvest Group Limited Features of the past year • Bidvest Bank and Bidvest Insurance branding is increasingly well recognised and capturing customers • Strong capital levels, ratio’s and liquidity • Growing customer base and deposits • Revenue growth from Wor
Slide 7: Financial Services – a currency card
Financial Services – a currency card The Bidvest Group Limited Trading • Banking and foreign exchange services – Total assets R4,6bn, deposits up 19% to R2,1bn, loans & advances (including leasing assets) R2,4bn – Capital adequacy 20%, credit loss ratio 0.1%, liquidity coverage ratio 119%, net stabl
Slide 8: Freight – a natural resource
Freight – a natural resource The Bidvest Group Limited Features of the past year • Export volumes broadly favourable, imports were down • 21% rise in billings at Bidvest Panalpina Logistics but at low margins • Healthy bulk commodity activity • Capital expenditure of R342 million – completion of Bul
Slide 9: Freight – a natural resource
Freight – a natural resource The Bidvest Group Limited Trading • Island View Storage: impact of new Transnet pipeline felt in IVS significantly reducing the petroleum products handled, margins are under pressure and cost control key focus, performance in line with prior year, NERSA price regulation
Slide 10: Industrial – gained momentum late in the year
Industrial – gained momentum late in the year The Bidvest Group Limited Features of the past year • Bidvest Materials Handling has begun to perform to expectation, a much improved result • Buffalo Executape returned a satisfactory result at acceptable margin on higher throughput and improved recover
Slide 11: Office – Waltons and Furniture on firmer ground
Office – Waltons and Furniture on firmer ground The Bidvest Group Limited Features of the past year • Waltons stationery is delivering more acceptable levels of performance • Furniture manufacturing has reduced its losses substantially and the sales units outperformed • Konica Minolta continues to d
Slide 12: Paper Plus – packaging print opportunities
Paper Plus – packaging print opportunities The Bidvest Group Limited Features of the past year • Kolok improved its profitability by successfully managing currency weakness and strengthening its market position • Six focused divisions • Acceleration in the decline of traditional print continues to b
Slide 13: Rental and Products – a well received offering
Rental and Products – a well received offering The Bidvest Group Limited Features of the past year • Disciplined trading, good cost control and high service levels delivered growth in revenue and profit • Masterguard performed well assisted by introduction of new product • Pest control offering grow
Slide 14: Rental and Products – a well received offering
Rental and Products – a well received offering The Bidvest Group Limited Trading • Bidvest Hygiene: rental base is under pressure but pest control is growing strongly; cost of revenue being effected by currency weakness; assets are being very well maintained • Laundries: a bolt-on acquisition assist
Slide 15: Services – industrial cleaning improvement
Services – industrial cleaning improvement The Bidvest Group Limited Features of the past year • Turnaround at TMS and Top Turf a notable feature • Prestige and Magnum retaining market share in a very price sensitive market; good cost control • Bidtrack is performing well • A very strong improvement
Slide 16: Travel and Aviation – travel leading light
Travel and Aviation – travel leading light The Bidvest Group Limited Features of the past year • Customer retention and cost containment offset margin pressure at Bidtravel, good overall result • Budget Rent a Car result benefited from a rise in rental days and average length of rental although car
Slide 17: Appendix 3: Segmental results analysis – Bidvest Foodservice
Appendix 3 Segmental results analysis – Bidvest Foodservice www.bidvest.com
Slide 18: Food Asia Pacific – a region of opportunity
Food Asia Pacific – a region of opportunity The Bidvest Group Limited Features of the past year • Australia – solid performance in a market showing negative signs • New Zealand – another great set of results in a low inflation environment • Greater China – despite a slowing China, we continued to gr
Slide 19: Food Asia Pacific – a region of opportunity
Food Asia Pacific – a region of opportunity The Bidvest Group Limited Trading • Australia: sales up 10.1% to A$2,074m; trading profit up 8,1% to A$91,0m, trading margin 4.4% – Foodlink acquisition in April 2012 is primarily a logistics (QSR) and corporate player – Foodservice continued to perform we
Slide 20: Food Europe – keeping focused at a difficult time
Food Europe – keeping focused at a difficult time The Bidvest Group Limited Features of the past year • UK – all 3 business pillars performed well, signs of economic recovery gaining ground • Netherlands – margins squeezed, partial SAP implementation deferred • Belgium – growth achieved, our Horeca
Slide 21: Food Europe – keeping focused at a difficult time
Food Europe – keeping focused at a difficult time The Bidvest Group Limited Trading • 3663 Wholesale: sales up 8.4% to £1 161,4m, volumes 3% up with margin and cost per item in line with budget, shift in mix toward freetrade, trading profits £36,4m, margin at 3.1%, investing in infrastructure to inc
Slide 22: Food Southern Africa – transitioning
Food Southern Africa – transitioning The Bidvest Group Limited Features of the past year • New leadership gives positive momentum • Patleys bounces back • Crown Foods continues to grow and innovate • Difficult trading year for foodservice as it transitions to Multi-temp but trend is positive • Baker
Slide 23: Food Southern Africa – transitioning
Food Southern Africa – transitioning The Bidvest Group Limited Trading • Bidvest Foodservice South Africa: Sales grew 2.6%, trading profits down 8.8%. Market characterised by consumers down trading to the QSR segment where Bidvest does not participate. Multi-temp rollout starting to deliver efficien
Slide 24: Appendix 4: Segmental results analysis – Bidvest Namibia
Appendix 4 Segmental results analysis – Bidvest Namibia www.bidvest.com
Slide 25: Namibia – rising to a challenge
Namibia – rising to a challenge The Bidvest Group Limited Features of the past year • Fishing negatively impacted by lower direct quota allocation and a need to purchase in quota • Higher selling prices and currency weakness partly compensated for purchased in quota costs • Commercial & Industrial o
Slide 26: Namibia – rising to a challenge
Namibia – rising to a challenge The Bidvest Group Limited Trading • Fisheries – Revenue increased by 6.8% to NAD1,59bn and trading profit down by 7.9% to NAD528,5m – Horse mackerel: good catches with assets kept well employed as a result of bought-in quota – Exchange rate to the USD averaged NAD8,86
Slide 27: Appendix 5: Segmental results analysis – Bidvest Corporate
Appendix 5 Segmental results analysis – Bidvest Corporate www.bidvest.com
Slide 28: Bidvest Corporate – a real estate
Bidvest Corporate – a real estate The Bidvest Group Limited Features • Bidvest’s strategic property holdings contributed R324,0m in income (R297,1m) • Investment, other income, corporate costs R47,2m (R35,0m) • Ontime Automotive Rescue & Recovery merged with The Mansfield Group July 2013 • Ongoing p
Slide 29: Appendix 6: Bidvest Financial Analysis
Appendix 6 Bidvest Financial Analysis www.bidvest.com
Slide 30: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% • R8,2bn exchange rate impact on revenue just in translation • Major translati
Slide 31: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% June 30 June 30 Trading mar
Slide 32: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% Net finance expense (764,5)
Slide 33: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% Net finance expense (764,5)
Slide 34: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% Net finance expense (764,5)
Slide 35: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% Net finance expense (764,5)
Slide 36: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% Net finance expense (764,5)
Slide 37: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% Net finance expense (764,5)
Slide 38: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% Net finance expense (764,5)
Slide 39: Consolidated Income Statement
Consolidated Income Statement The Bidvest Group Limited June 30 June 30 Year ended June 30 2013 2013 2012 2013 Rm Avg Avg Currency effects @ R/£ 13,87 R/£ 12,34 R/£ 12,34 Revenue 153 404,5 +14.9% 133 533,6 145 176,3 +8.7% Trading profit 7 675,2 +9.4% 7 014,2 7 446,9 +6.2% Net finance expense (764,5)
Slide 40: Consolidated cash flow statement
Consolidated cash flow statement The Bidvest Group Limited Year ended June 30 2013 Year ended June 30 2012 R bn R bn Cash generated from ops pre wc Working capital utilised Net Finance charges Taxation Distributions Cash effects of investment act’s Cash effects of financing act’s • Working capital a
Slide 41: Net working capital days
Net working capital days The Bidvest Group Limited 15 8 13 8 8 12 Net days Debtors days Stock days Creditors days H1 2011 F 2011 H1 2012 F 2012 H1 2013 F 2013 Net working capital days, 4 days higher than F2012 • Inventory - in line with prior year, continued ongoing focus by management • Debtors - r
Slide 42: Net working capital flows vs cash generated
Net working capital flows vs cash generated The Bidvest Group Limited Rbn • Working capital continuing a well established cycle, impacted by strategic investments in inventory • H2 2013 cash generation by operations before WC similar to H2 2012 Audited results for the year ended June 30 2013 42
Slide 43: Gearing
Gearing The Bidvest Group Limited Target interest cover range • Net interest cover of 10,0x exceeds Group benchmark of 5-6x • Ample headroom to fund organic or acquisitive expansion Audited results for the year ended June 30 2013 43
Slide 44: Appendix 7: Bidvest Historical Results
Appendix 7 Bidvest Historical Results www.bidvest.com
Slide 45: Historic Performance – year to June
Historic Performance – year to June The Bidvest Group Limited 5,6% 5,3% 5,2% 5,1% 5,4% 5,2% 4,5% 4,4% 4,4% 4,7% 4,9% 4,7% 13% CAGR over 10 fiscal years 12% CAGR over 10 fiscal years Audited results for the year ended June 30 2013 45