Bidvest Group Limited · JSE:BVT
Bidvest — FY2007 Earnings Presentation
28 slides from Bidvest's earnings presentation, Jun 30, 2007
Slide 1: Audited Results
Audited Results For the year ended June 30 2007 1
Slide 2: Agenda
Agenda Introduction and Overview Financial Results Outlook Appendices: • Appendix 1: Divisional Review • Appendix 2: Historic performance 2
Slide 3: Introduction and Overview
Introduction and Overview Brian Joffe 3
Slide 4: F2007 results summary
F2007 results summary Revenue 24% to R95,7bn Trading Profit* 24% to R4,5bn Headline earnings 21% to R2,9bn HEPS 21% to 970,0cps Diluted HEPS 23% to 947,2cps DPS 21% to 446,4cps ROFE from 54% in F2006 to 50% in F2007 * Before capital items and impairments Note: IFRS compliant Introduction 4
Slide 5: Highlights of F2007
Highlights of F2007 Operational Performance Pleasing overall performance in a more challenging economy Significant market share gains as prior year’s capex starts to bear fruit Dinatla refinancing & alignment with BBBEE codes Acquisition of Angliss Foodservices ($80m, an 8x EBITDA multiple). Walked
Slide 6: Highlights of F2007
Highlights of F2007 Human Capital +/- 10 000 more jobs created: 104 184 people employed vs 93 325 in F2006 Bidvest academy – tool for development of managerial talent Transformation Succession generation; quality of up and coming management Introduction 6
Slide 7: Segments at the forefront of performance
Segments at the forefront of performance Revenue (Rm) Trading Profit (Rm) Segment F2006 % ch F2007 F2006 % ch F2007 Bidserv – Driven organically 4 639,4 +16 5 393,1 562,4 +19 669,4 Bidvest Asia Pacific – 3rd 6 505,8 +36 8863,7 219,4 +58 346,6 successive year of very high growth; 2-month contribution
Slide 8: Segments holding their own
Segments holding their own Revenue (Rm) Trading Profit (Rm) Segment F2006 % ch F2007 F2006 % ch F2007 Bidfreight – Disappointing volumes 15 601,9 +22 18 994,9 536,9 +11 596,4 plus margin pressure Bidvest Europe – Pleasing progress 22 132,0 +35 29 962,5 651,2 +16 757,6 from Deli XL. Tactical re-posit
Slide 9: Financial Results
Financial Results David Cleasby 9
Slide 10: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Organic growth of 21.1%; 14.5% excluding exchange translation Inflationary price increases coming thro
Slide 11: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Trading profit 4 546,8 +23.6 3 677,3 4 350,9 +18.3 Organic growth of 23% Trading F2007 F2006 Margins S
Slide 12: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Trading profit 4 546,8 +23.6 3 677,3 4 350,9 +18.3 Net finance expense (566,2) +65.4 (342,4) (552,3) +
Slide 13: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Trading profit 4 546,8 +23.6 3 677,3 4 350,9 +18.3 Net finance expense (566,2) +65.4 (342,4) (552,3) +
Slide 14: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Trading profit 4 546,8 +23.6 3 677,3 4 350,9 +18.3 Net finance expense (566,2) +65.4 (342,4) (552,3) +
Slide 15: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Trading profit 4 546,8 +23.6 3 677,3 4 350,9 +18.3 Net finance expense (566,2) +65.4 (342,4) (552,3) +
Slide 16: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Trading profit 4 546,8 +23.6 3 677,3 4 350,9 +18.3 Net finance expense (566,2) +65.4 (342,4) (552,3) +
Slide 17: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Trading profit 4 546,8 +23.6 3 677,3 4 350,9 +18.3 Net finance expense (566,2) +65.4 (342,4) (552,3) +
Slide 18: Consolidated Income Statement
Consolidated Income Statement Avg Avg F2007 in constant currency Year ended June 30 2007 R/£13.95 R/£ 11.44 R/£ 11.44 Rm’s F2007 % ch F2006 F2007 % ch Revenue 95 655,5 +23.8 77 276,5 88 489,0 +14.5 Trading profit 4 546,8 +23.6 3 677,3 4 350,9 +18.3 Net finance expense (566,2) +65.4 (342,4) (552,3) +
Slide 19: Consolidated Cash Flow Statement – Rm's
Consolidated Cash Flow Statement – Rm’s Year ended June 30 2007 Year ended June 30 2006 5589 Cash generated from ops 4651 -1352 Working capital utilised -161 -473 Net Finance charges -259 -1152 Taxation -864 -1233 Distributions -1016 -3104 Cash effects of investment act’s -2368 -335 Cash effects of
Slide 20: Net working capital flows vs cash generated - Rbn
Net working capital flows vs cash generated - Rbn Net working capital Cas h generated by operations 4 3.0 3 2.6 2.2 2.2 1.8 1.8 2.0 2 1.5 1.4 1.1 1.0 0.9 1 0 -1 -0.7 -1.2 -1.1 -2 -2.3 -3 H1 2004 H2 2004 H1 2005 H2 2005 H1 2006 H2 2006 H1 2007 H2 2007 Upward trend in cash generated Net working capita
Slide 21: Gearing
Gearing Net interest-bearing debt (Rbn) Interest cover (x) 14 5 Target interest cover range 12 4 11.6 11.4 4.2 10 10.3 10.7 3.8 9.3 8 3 3.0 8.0 6 2 2.4 4 1 1.5 2 1.0 0 0 H1 2005 F2005 H1 2006 F2006 H1 2007 F2007 Interest cover of 8; target of 5-6x R2,3bn increase in debt from F2006: • Increased work
Slide 22: Gearing
Gearing Breakdown of local and foreign borrowings (excl. bank overdraft) 3 2.5 2 2.2 2.2 2.2 1.8 June '06 Rbn 1.5 June '07 1 0.5 0 Borrowings of foreign Borrowings of local subsidiaries subsidiaries Gross credit make up 4 3.7 3.8 3.5 3 2.5 June '06 Rbn 2 June '07 1.8 1.5 1 * Secured by 0.5 0.7 pledg
Slide 23: Debt Maturity Profile
Debt Maturity Profile Jun-06 Jun-07 3.5 3.4 3 2.5 2.7 Bond (10.19% over 7 YRS) 2 Rbn 1.9 1.5 1.5 1 1.5 0.8 0.5 0.5 0.6 0.5 0 <2 years 2>5 years >5 years R1,5bn Bidvest bond issue to restructure debt to: Diversify sources of funding into the capital markets Build up a capital market credit curve over
Slide 24: Group Outlook
- om Group Outlook Brian Joffe ite possibilities... 24
Slide 25: Operational Prospects – F2008
Operational Prospects – F2008 Bidfreight: Improved agricultural volumes; ongoing benefits of capex Bidserv: • Benefits from contracts won in F2007 • Turnaround in Security • Bidvest Bank – primarily a forex bank with ongoing focus on niche corporate lending, asset finance and corporate cards Bidvest
Slide 26: Operational Prospects – F2008
Operational Prospects – F2008 Bid Industrial & Commercial Products: Infrastructure spend and growth in corporate SA now coming through strongly Bidpaper Plus: Expect an energised focus of capitalising on efficiency gains, following a consolidation phase in F2007 • Extension of traditional and new te
Slide 27: Group Prospects – F2008
Group Prospects – F2008 Headwinds: Higher interest rates, slower consumer spending Tailwinds: Higher average inflation (ability to pass on price increases), a relatively settled trading outlook, infrastructure spend continues to gain momentum Focus on working capital management and rigorous cost con
Slide 28: ite possibilities...
ite possibilities... 28