Bidvest Group Limited · JSE:BVT
Bidvest — The Bidvest Group — H1 2015 Earnings Presentation
35 slides from Bidvest's earnings presentation, February 2015
Slide 1: Financial Results for the half-year ended December 31 2014
The Bidvest Group Limited Financial Results for the half-year ended December 31 2014 145 808 Extraordinary people Proudly Bidvest www.bidvest.com
Slide 2: Agenda
Agenda 1 Overview Brian Joffe – Group CE 2 Bidvest Financials David Cleasby – Group FD 3 Bidvest South Africa Lindsay Ralphs – Bidvest South Africa CE 4 Bidvest Namibia Lindsay Ralphs – Bidvest South Africa CE 5 Bidvest Foodservice Bernard Berson – Bidvest Foodservice CE 6 Looking forward Brian Joff
Slide 3: Brian Joffe, Group CE
The Bidvest Group Limited Brian Joffe Group CE www.bidvest.com
Slide 4: CEO's Overview of H1 2015
CEO’s Overview of H1 2015 Turnover R104,4 billion ($9,5 billion) • International double digit profit growth in hard currency EBITDA R6,0 billion ($545,5 million) • SA trading result up 4% on an organic basis excluding Mvela Growth of 17.4% in trading result • Rand weakness contributed 2.7% to earnin
Slide 5: Financials
The Bidvest Group Limited Financials David Cleasby – Group FD www.bidvest.com
Slide 6: Financial highlights
Financial highlights Half-year Half-year ZAR ended Dec 31 ended Dec 31 Change 2014 2013 • South Africa revenue up 11.0%, Turnover 104,4bn 89,6bn +16.5% Foodservice revenue up 20.6% Gross profit % 20.1% 19.8% • GP margin held up well despite some pressure Expenses % 15.9% 15.6% • Trading margin - Bid
Slide 7: Income statement analysis
Income statement analysis • Turnover - R4,0bn exchange rate impact on translation; major acquisitions account for R3,2bn of growth • Despite some margin pressure in certain businesses, Gross Profit increased to 20.1% vs 19.8% • Expenses well controlled - excluding currency effects and acquisitions,
Slide 8: Financial position and cash flow analysis
Financial position and cash flow analysis • Cash flow cycle is typically one of absorption in H1 and release in H2 • Net working capital at 14 days vs. 16 days – stock up at 38 days (2013: 35 days) • Rand replacement values of imported products, acquisitions and strategic stocking and growth – credi
Slide 9: Funding our growth
Funding our growth Risk mitigation • Currency risk: transactions covered forward, foreign assets matched to liabilities for natural hedge • All operations managed in their home territories and measured in their domestic currency Funding and rates • Premium credit ratings affirmed in November 2014 (F
Slide 10: Bidvest South Africa
The Bidvest Group Limited Bidvest South Africa Lindsay Ralphs – Bidvest South Africa CE www.bidvest.com
Slide 11: Bidvest South Africa Overview
Bidvest South Africa Overview Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 43 936 833 39 588 097 11.0% Trading profit 2 528 934 2 404 981 5.2% Trading margin 5.8% 6.1% • Bidvest South Africa result assisted by Mvelaserve contribution for six months versus two months
Slide 12: Bidvest South Africa Automotive
Bidvest South Africa Automotive Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 11 758 625 10 979 648 7.1% Trading profit 328 210 332 666 (1.3)% Trading margin 2.8% 3.0% Trading highlights of H1 2015 • Progressing action plans on underperforming dealerships, productivi
Slide 13: Bidvest South Africa Consumer Products
Bidvest South Africa Consumer Products Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 639 300 687 332 (7.0)% Trading profit 47 900 57 449 (16.6)% Trading margin 7.5% 8.4% Trading highlights of H1 2015 • General merchandising category under pressure - declining currenc
Slide 14: Bidvest South Africa Electrical
Bidvest South Africa Electrical Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 2 600 376 2 274 565 14.3% Trading profit 121 915 89 306 36.5% Trading margin 4.7% 3.9% Trading highlights of H1 2015 • Result driven by improved gross margin and competitiveness of product
Slide 15: Bidvest South Africa Financial Services
Bidvest South Africa Financial Services Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 907 864 848 722 7.0% Trading profit 253 591 332 700 (23.8)% Trading margin 27.9% 39.2% Trading highlights of H1 2015 • Insurance operating profit before investment income increased
Slide 16: Bidvest South Africa Freight
Bidvest South Africa Freight Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 14 423 680 13 962 104 3.3% Trading profit 566 893 540 160 4.9% Trading margin 3.9% 3.9% Trading highlights of H1 2015 • A mixed result with volumes in general softer • Bidvest Tank Terminals a
Slide 17: Bidvest South Africa Industrial
Bidvest South Africa Industrial Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 1 150 494 1 010 422 13.9% Trading profit 90 630 64 635 40.2% Trading margin 7.9% 6.4% Trading highlights of H1 2015 • Academy Brushware, Bidvest Materials Handing, Bidvest Buffalo Tapes, Vu
Slide 18: Bidvest South Africa Office
Bidvest South Africa Office Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 2 572 316 2 421 117 6.2% Trading profit 157 109 162 766 (3.5)% Trading margin 6.1% 6.7% Trading highlights of H1 2015 • A weaker result like for like due largely to a negative variance in both
Slide 19: Bidvest South Africa Paperplus
Bidvest South Africa Paperplus Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 2 568 760 2 404 293 6.8% Trading profit 187 522 195 047 (3.9)% Trading margin 7.3% 8.1% Trading highlights of H1 2015 • A reasonable result against a backdrop of tough economy, electricity o
Slide 20: Bidvest South Africa Rental and Products
Bidvest South Africa Rental and Products Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 1 227 556 1 130 441 8.6% Trading profit 245 954 218 748 12.4% Trading margin 20.0% 19.4% Trading highlights of H1 2015 • A good result with Bidvest Steiner and Bidserv Industrial P
Slide 21: Bidvest South Africa Services
Bidvest South Africa Services Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 4 774 134 2 674 546 78.5% Trading profit 315 675 205 569 53.6% Trading margin 6.6% 7.7% Trading highlights of H1 2015 • Real trading profit growth achieved excluding Mvelaserve • Acquisition
Slide 22: Bidvest South Africa Travel and Aviation
Bidvest South Africa Travel and Aviation Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 1 313 728 1 194 907 9.9% Trading profit 213 535 205 935 3.7% Trading margin 16.3% 17.2% Trading highlights of H1 2015 • Bidair grew both revenue and profit in real terms on a like
Slide 23: Bidvest Namibia
The Bidvest Group Limited Bidvest Namibia Lindsay Ralphs – Bidvest South Africa CE www.bidvest.com
Slide 24: Namibia
Bidvest South Africa Namibia Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 2 049 033 1 842 789 11.2% Trading profit 172 514 218 228 (20.9)% Trading margin 8.4% 11.8% Trading highlights of H1 2015 Fishing • Namsov continued to be negatively affected by the horse macke
Slide 25: Namibia (continued)
Bidvest South Africa Namibia (continued) Trading highlights of H1 2015 Food & Distribution • Trading profit down by 29% on the back of reduced volumes, particularly in poultry and dairy segments Commercial and Industrial Products and Services • Mixed result but trading profits grew by 14% with Bidve
Slide 26: Bernard Berson, Bidvest Foodservice CE
The Bidvest Group Limited Bernard Berson Bidvest Foodservice CE www.bidvest.com
Slide 27: Bidvest Foodservice Overview
Bidvest Foodservice Overview Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 59 545 021 49 382 683 20.6% Trading profit 1 912 490 1 453 282 31.6% Trading margin 3.2% 2.9% • Autonomously managed businesses supported by group-wide procurement ability, systems and learnin
Slide 28: Bidvest Foodservice Australasia
Bidvest Foodservice Australasia Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 14 869 713 13 276 224 12.0% Trading profit 680 916 580 454 17.3% Trading margin 4.6% 4.4% Trading highlights of H1 2015 Australia • Growing new market segments and niches outside of traditi
Slide 29: Bidvest Foodservice United Kingdom
Bidvest Foodservice United Kingdom Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 23 847 434 19 290 527 23.6% Trading profit 521 489 360 000 44.9% Trading margin 2.2% 1.9% Trading highlights of H1 2015 • Advantage of a flexible and robust British economy but the marke
Slide 30: Bidvest Foodservice Europe
Bidvest Foodservice Europe Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 12 722 872 10 014 080 27.0% Trading profit 341 078 202 082 68.8% Trading margin 2.7% 2.0% Trading highlights of H1 2015 Netherlands • Despite a competitor bankruptcy the market remains difficult
Slide 31: Bidvest Foodservice Europe (continued)
Bidvest Foodservice Europe (continued) Italy • Developing the business relationship at DAC • Positive six months with good margin achieved, new warehouse to open in Rome in April Outlook for remainder of 2015 • Some positive indications in the Dutch market, reducing complexity in the business, whole
Slide 32: Bidvest Foodservice Emerging Markets
Bidvest Foodservice Emerging Markets Half-year ended Half-year ended R’000s Change Dec 31 2014 Dec 31 2013 Turnover 8 105 002 6 801 852 19.2% Trading profit 369 007 310 747 18.7% Trading margin 4.6% 4.6% Trading highlights of H1 2015 Food Africa • Multi-temp strategy in Foodservice yielding signific
Slide 33: Bidvest Foodservice Emerging Markets (continued)
Bidvest Foodservice Emerging Markets (continued) Trading highlights of H1 2015 Angliss Greater China • Combined sales growth of 18% achieved despite political protest in Hong Kong • Mainland China growing strongly, increasing to 42% of total sales and 45% of total profits • China receptive to higher
Slide 34: Brian Joffe, Group CE
The Bidvest Group Limited Brian Joffe Group CE www.bidvest.com
Slide 35: Looking forward
Looking forward Adcock still offers positive medium term potential for Bidvest Extracting full benefits of Mvelaserve acquisition Continued progress with improving and growing Foodservice businesses internationally Focus on deepening the internationalisation of Bidvest across other services and prod