Bidvest Group Limited · JSE:BVT
Bidvest — The Bidvest Group — Investor Day (June 2017)
73 slides from Bidvest's investor day presentation, Jun 8, 2017
Slide 1: We Bidvest
na _. We Bidvest
Slide 2: Bidvest Investor Trip - 8&9 June 2017
BIDVEST INVESTOR TRIP - 8&9 JUNE 2017 Contact: lize Roux (083 455 7403) 10;00-12:00 14:15-12:00 12:00-12:30 travel 13-15-4345 14:00-14:30 14;30-15:00 travel 15:15-15:45 travel 16:30-17,00 travel 18:15 Friday 8:30 travel 9:30-9:45, travet 10:15-10:45 travel 14:00-11:30 travel 13:00-13:30 13:45-14:15
Slide 3: We are Bidvest
Bidvest WiNQ — We are Bidves A leading South African trading, distribution and service group operating in the areas of commercial products, electrical products, financial services, freight services, office and print solutions, outsources hard and soft services and automotive retailing via seven divi
Slide 4: Strategy
Strategy » Focus on growth in seven core divisions via diversification, innovation ions to continue » Local bolt-on acqui > Internationalise niches in Services and Commercial Products > Maintain strong cash generation and excellent asset management Business model » A blend of defensive, cyclical and
Slide 5: Organic growth continues, albeit at modest pace, given back-drop
Organic growth continues, albeit at modest pace, given back-drop » Expected pick-up materialised in 3017 but subsequent drop in business confidence makes for challenging operating environment >» Annuity-type businesses solid. Trade volumes improved. Industrial project-type work slow » Focused on add
Slide 6: Operational update: Office & Print, Financial Services, Electrical, Namibia
Office & Print » Structural changes resulting in deflationary top-line » Business have been and continue to be repositioned/restructured to adapt » Furniture demand depressed in line with low business confidence > Niches in packaging and print delivering good results Financial Services * Several bol
Slide 7: Market Conditions
Market Conditions © The market continues to be competitive and price sensitive © Margin are under pressure * Focus on volumes and extended contract tenure to compensate for the margin pressure New Business Gains * Market share gains continue to be on the rise Facitities management model gains tracti
Slide 8: Ratings
RATINGS > Bidvest Group: Level 4 » Bidvest subsidiaries obtain their own ratings (80% have achieved between Level 1 - Level 4 on 2013 Codes) STRATEGIC FOCUS AREAS Skills Development » Marked increase in investment in training and development on both employed and unemployed people » Compliance target
Slide 9: Freight: revenue and margin, trading income and cash generation
Freight: revenue and margin Freight: trading income and cash generation 35.000000 500% 120000 30009 000 500% 1000000 400% e000 sacone00 200% 690000 asco ae 200% aane00 sen00n0 oes 200000 I I 1 1 a e 9,008 2006 2007 2003 2009 2610 2011 2012 2013 2914 2018 2016 2006 2007 2008 2009 2010 2011 2012 2013
Slide 10: Industrial grouping: returns
industrial grouping: returns eos 2007 2008 AOS 20ND 2611 2012 IIs WIE oF Rae = iii 2006 2007 2008 1009 2920 2011 2017 2913 2014 20T5 2075 Industrial grouping: revenue and margin Maa CormarcutProacts BmMREkctrital RTT OMice & Prick = Tracing reargn 201s 2015 Industrial group: trading income and cash
Slide 11: Financial Services: revenue and margin
Financial Services: revenue and margin Financial Services: trading income and cash 4005000 45,00% generation 30.0% 500000 200000 a van 25006 40000 206% ee 1500000 ee: 100000 400.000 19.00% o r" I 00000 5.00% 290000 ° pox —-20000 2005 2007 2008 2009 2010 2027 2037 2023 2614 2015 2016 2006 7007 208 70
Slide 12: Executive management
UNDSAY RALPHS — CHIEF EXECUTIVE OFFICER —— : _ PETER MEWER j GILLIAN MCMAHON MPUMI MADISA CHIEF FINANCIAL OFFICER EXECUTIVE DIRECTOR | EXECUTIVE DIRECTOR COMMERCIAL _— Ea RISE re CEO CEG cEG CES CEO ceo CEG Steve Keys Japie ¥ Niekerk Stan Green Anthony Dawe Kevin Wakeford Howard Greenstein Alan Fain
Slide 13: Bidvest Automotive
-— aL = eas 1 a BIDVEST AUTOMOTIVE mes INVESTOR PRESENTATION oe aL oJ 2 sa me 5 aidvest BIDVEST AUTOMOTIVE . a ™ Bidvest @ Car Rental _» ™ Bidvest @ McCarthy
Slide 14: Bidvest McCarthy: What we do
E® Bidvest Hla McCarthy WHAT WE DO ALeading South African Automotive Retailer > Second largest motor retail Group in SA » Excellent geographic footprint across SA > 1 in every 13 new vehicles sold in SA are sold by Bidvest McCarthy > Healthy split of new vehicle brands between volume and lwairy segm
Slide 15: Finance and insurance solutions; Bidvest Club McCarthy
» Weoffer a full Solution with regards to all Finance and Insurance products » Weare able to offer these solutions through > all the major Banks, including Bidvest Bank » Bidvest Insurance » We offer full vehicle Fleet Tracking solutions through various partners » Bidvest Burchmores auctions in exce
Slide 16: New vehicle market continues to contract
MP Bidvest le McCarthy New vehicle market continues to contract Luwury market particularly hard hit Exit of General Motors Solid growth in pre-owned trading Strategy to exit minor brands process almost complete @® Bidvest Ge Automotive BIDVEST CAR RENTAL Because every minute counts. ET® Bidvest He C
Slide 17: Bidvest Car Rental
= EP Bidvest ER@ Car Rental i Because every minute counts. » Formerly Budget Rent-a-Car > 3" largest car rental company in SA__ also operational in Botswana and Namibia » Fleet of 10 G00 vehicles >» Process inexcess of 600 000 rentals per annum > Products ® Car rental >» Van rental ® Chauffeur drive
Slide 18: Security
SECURITY EXCELLENCE Ge Protea coms that ada # Our Bidvest ProteaCoin customers experience real benefits... Responsiveness to customer needs. Tailor-made, integrated security solutions Noticeable reduction in losses of assets or lives Security solutions based on a balanced approach between Technology
Slide 19: Blue-chip clients
Selicest =a BLUE-CHIP CLIENTS ‘Od Zi a? ¥ Reckitt Intermationat RIDGESTONE = $250. oy Benckiser @ we tmonc MaaTsy? Sibanye Ge) E iat Gas... GeABSA Tongaer Hulett —wML. Ge Barloworld sappi eo) Porsren. 6 a eoaro aw: © aed SUN =D reertnich PaBBEHIRY “= NEDBANK. we & me vodacom ~ (7 soon toeca ses (Fre
Slide 20: Bidvest Services clusters
we Bidvest E® Bidvest He Services D °, EP Bidvest Hl® Services FM SECURITY INDUSTRIAL TRAVEL ALLIED CLUSTER CLUSTER CLUSTER CLUSTER CLUSTER BInVEST rat a aan BIDVEST TMS GROUP HG RENNIES TRAVEL SIDYEST EXEC CARLSON WAGONLIT | | BIDTRACK BIDVEST VERICON TRAVEL | PUREAD |) HOTEL AMENTITIES PT BIVAIR B
Slide 21: Services: cleaning, hygiene, facilities management
D HF Bidvest Services mm Bidvest | PRESTIGE | * 40,000 people Clean 27,000m2 per month * Operate in commercial, mining, industrial, hospital and healthcare sectors * Also specialised Event Staffing and Mobile Toilet Hire M® Bidvest Wo STEINER © South Africa’s largest washroom hygiene business meen ¢
Slide 22: Services: Protea Coin, Bidtrack, TMS, BidAir
—E® Bidvesi Hie Services m= Bidvest Me PROTEA COIN oo * South Africa’s second largest security company UR * 25,000+ people 1 * 6,500 sites serviced by 1,200 vehicles + Specialist divisions focused on: mining, estates, banking, reaction and investigation Linits, general guarding and aviation clients
Slide 23: Travel and Allied clusters
TRAVEL CLUSTER Travel management services to Wagon BCD" e travel — corporate clients ioe HG * 3 International and competing brands . ica’ HARVEY South Africa’s largest Travel Company TRAVEL Tar Trove! Frefestaneit + +22% of total air transactions CONNECTIONS * Leisure diversification includes BushBr
Slide 24: Rationale for this division and market conditions
RATIONALE FOR THIS DIVISION |->¥ssteeal 4 BUNDLED SERVICE \ INTEGRATED FACILITY > TOTAL FACILITY > SINGLE SERVIC! MANAGEMENT MANAGEMENT ee | } A 1000s of contracts Steiner & Prestige Hard (Technical Services) Yard & Soft Services bundled into single contracts Examples: * Telkom * biggest contract in
Slide 25: Bidvest Services
a Bidvest Bi@ Services
Slide 26: Bidvest Electrical: Voltex vision
Ef Bidvest ne Electrical Mvoltex° yom eleciriad compaction VISION Mvoltex’ Our vision Is to be and remain the best, most efficient and capable distributor of electrical and related products and solutions to the industries in which we operate and to ensure that we manage our assets In a manner which
Slide 27: Who is Voltex?
WHO IS VOLTEX? Mivoltex® Voltex is a wholly owned subsidiary of The Bidvest Group with a revenue over R65 Billion Per annum. + Over 2400 employees + 400 Vehicle Fleet * Level 3 BBBEE rating cet eramsasentcoven AO BS Baten HOW IS VOLTEX STRUCTURED? strategically located throughout Seuthern Africa Vvo
Slide 28: Voltex supplies quality products
VOLTEX SUPPLIES QUALITY PRODUCTS Mvoltex’ Voltex carries in excess of R750 million worth of stock comprising an inventory of more than 30 000 kine Items This stockholding consists of well known house brands in addition to a vast majority of the world’s leading brands Valtex only supplies quality cer
Slide 29: Our supply divisions
OUR SUPPLY DIVISIONS Mvoltex’ _AtlaSgroup The Atlas Group is a significant stockist and distributor of iarge mains, bells, communication, overhead cables and general wires as well as overhead line hardware and accessories and general lead wire and products associated with electrical distribution : W
Slide 30: Our supply divisions
OUR SUPPLY DIVISIONS Nivoltex’ pa = Db Impact Power Innovations Impact Power Innovations Is the perfect solution for Industrial, Commercial and Utility Industries G. interface as it monitors, reviews and corrects the efficiency and performance of distributed generation equipment that ts impacted by
Slide 31: Current market conditions; opportunities, challenges, initiatives
CURRENT MARKET CONDITIONS Mvoltex’ + Difficutt trading conditions + Lack of meaningful infrastructural spend + Confidence levels poor * Lack of demand * Difficulty in collections (ines = = venta omansasraarcouny A BD BRB OPPORTUNITIES, CHALLENGES, INITIATIVES Mvoltex’ Opportunities « Animproving eco
Slide 32: Thank you
V voltex’ Saal elec Trical conection Thank you
Slide 33: Nature of operation
Nature of operation Local manufacture, supply and implementation of energy saving and alternative energy products and solutions Key customers ar Bidvest Facility Management (Telkom contract); Voltex SA Department of Energy; UJ university SA corporates and auto manufacturers In rest of Africa (Morocc
Slide 34: Plumblink
2 PLUMBLINK E® Proudly Me Bidvest @ PLUMBLINK mass sth June 2017 BIDVEST INVESTOR SITE VISIT Welcome and introduction to Plumblink e Plumblink business overview \ - Anational plumbing supplies retailer _ - Changed business model - 86 stores - 4 Distribution centres - Imports warehouse - Customer bas
Slide 35: Q & A session
@ PLUMBLINK — Beweet Q & A session
Slide 36: Investor Trip: Freight
Investor Trip Freight. June 2017 OUR ® Bidve PORT TERMINALS Bidvest nas Bidvest Tank Terminals BULK LIQUID Sesth African Wolk South African Bulk Terminals DRY BULK Terminals El-=--— Bulk Connections DRY BULK is Bidfreight Port Operations MULTI-PURPOSE EN Bidvest TERMINAL SUPPORT Mie SACD Bidvest sac
Slide 37: Bidvest Tank Terminals and South African Bulk Terminals
| Bidvest _ Bidvest Tank Be ema Terminals * Bulk liquid handling & storage in Durban, Richards Bay and Isando. * 830 000 m? of storage capacity * Handles over 3 billion litres of product annually 2016 a tte OI Be : ~1T = Vegetable Ofs = Chommkels Petroleum = Gusms ABT tela South African Bulk LN Term
Slide 38: Bulk Connections and Bidfreight Port Operations
ES connections Bulk Connections * Multi-product bulk mineral in the Port of Durban * Capacity to handle up to 6 million tons pa ¢ Storage capacity of 600,000 tons +» MANGANESE METCOKE © OTHERIMPORTS © OTHER EXPORTS 5 isié Bidfreight Port Operations * Port warehousing, transport, stevedoring and ship
Slide 39: Bidvest SACD and Bidvest Panalpina Logistics
H® Bidvest iR< Ss ACD Bidvest SACD * A facilities with 100,000 m? of warehousing in Durban, Cape Town, City Deep and Port Elizabeth. ¢ Container pack and unpack, warehousing, transport & logistics. Handling cleared & un-cleared containers and cargo HioM @® Bidvest Panalpina Logistics Bidvest Panalpi
Slide 40: Naval; current situation
NAVAL Naval NAVAL - SERVICOS A NAVEGACAQ, LDA. * Provider of port services in Mozambique, including stevedoring, container packing and unpacking, tallying, lashing and securing of cargo, caulking and cleaning of rail trucks Handles a wide range of commodities and general cargo 5 . ae, i" “s Current
Slide 41: Innovation and growth
Innovation and growth Growth in Bidvest Tank Terminals - 2017 : Completion of Puma Fuel Tanks - 2018 : General spec tanks in progress - 2018 : Start LPG tanks, 30 month build R330 million R250 million R1 Billion
Slide 42: Financial Services Overview
EM Bidvest is SES SLs Financial Services Overview WP Bidvest Hd recs Sonices
Slide 43: Bidvest Financial Services Overview
Bidvest Financial Services Overview Traditional profitable business with a track record of more than 20 years predominantly consisting of: ™ Bidvest Bank * Forex Business « Fleet and Asset Finance @® Bidvest [ie Insurance Group * Automotive Value adding Products NOW: Focus on Diversifying into a bro
Slide 44: Bidvest Financial Services Acquisitions
&S Bidvest Bank Bidvest Financial Services Acquisitions M® Bidvest §e Insurance Group GlassockS & ASSOCIATES > First Data. F M | | life, better Compendium — Bidvest Bank Let’s get it done Overview B® Bidvest Bank ‘rein toe WW Bidvest ie Sernoes Franca!
Slide 45: Asset Finance and Fleet Management Product Offering
Asset Finance And Fleet Management Product Offering ASSET FINANCE AND FLEET MANAGEMENT ALL-IN-ONE FLEET MANABEMENT ae oe MP Bidvest SS Bidvest Bank Hd Foci sores Business Banking Services Product Offering rc BUSINESS BANKING SERVICES pe = ea WITH A PERSONAL TOUCH BP Bidvest Bidvest Bank He Frarstsmr
Slide 46: Personal Banking Services Product Offering
Personal Banking Services Product Offering a: B PERSONAL BANKING SERVICES = Mm Bidvest Mig Insurance Group Overview HF Bidvest [hep Forces sonices
Slide 47: Insurance Product Offering
Insurance Product Offering HP Bidvest ie Insurance Group r vhond BFP Blivest He Bidvest = insuence We Life Wi insuranceBrekers | Fa tk sore Geom Oe’ fa) comet Gs ‘Customer Life & Services Investment - Commercial 5] Disability Qut-bound Employee Lines CAI cover Sales Benefits Personal lines Travel ‘4
Slide 48: Atlas Group: where do we fit in?
tlaSgroup Cable, Power, Industria! & Electrical Supplies, sidvest Presentz ‘tion anm Where do we fit in? tlasgroup Cable, Poon Indust & Electrical Expplles M.voltex Timm, ‘Vvoltex Mvoltex Casas +) 218, Bectten Sobvbone fBlighting 9 Technitamp @ Proudly le Bidvest © Voliex | Proudly a Bidvest Company
Slide 49: Atlas Group is a wholly owned subsidiary of Voltex
Atlas Group is a wholly owned subsidiary of Voltex within the Bidvest Group, with a stockholding in excess of R140m and premises exceeding 30,000m*. @ Proudly ie Bidvest © Voltex | Proudly a Bidvest Company _ Who is Atlas Group? Over 150 employees Vehicle fleet consisting of — $3-crane trucks, — 23
Slide 50: Atlas Group Structure
Atlas Group Structure P G Jatlasgroup ‘Cale, Powe Ini! & Electrical Supplies Atlas Group is made up of 5 divisions. * Cable Division — General purpose wire, underground & overhead cables as well as specialized cable * Atlas Wholesaler — Supplies general electrical and lighting products * Transmissio
Slide 51: Quality Products
Quality Products atlasoroup ‘Cobia, Fount, Inurl & Elechicol Bupa, Voltex only supplies quality certified products and to this end is a founding member of the SAFEhouse association, an industry watchdog established to protect consumers, expose unsafe products, co-operate with entities which have lik
Slide 52: Competitive Advantage
Competitive Advantage tlaSgroup Cable, Powe, india! & Hlecical Supplies Quick and efficient deliveries Extensive fleet incl. crane trucks Favourable BBBEE Rating Credit Facility EP Proudly lie Bidvest © Voltex | Proudly a Bidvest Company tlaSgroup Calble, Paneer, baelatral & Eleiries! Supatios « Pro
Slide 53: Competitors
Competitors P G Yatlasgroup Cabin, Pawns, India & Klchon! Supetos ¢ Cable distributors ¢ Electrical Wholesalers e Manufacturers EP Proudly Me Bidvest © Voltex | Proudly a Bidvest Company State of the market e Lower demand currently in construction industry « Proper Government infrastructure spend wi
Slide 54: Thank you
THANK YOU \tlaSgroup | Cable, Power, Incustrial & Electrical Supplies Cable & Wire Mvoltex @ Proudly Me Bidvest © Voltex | Proudly a Bidvest Company
Slide 55: Transmission & Distribution
Transmission & Distribution VM voltex ——>S———————————————E———— Overhead Line Equipment + ABC / Alea Fittings & Acceszonas + Aluminium ABboy/Dre-Cast Fitungs * Clare + Cutouts and AGC Fuse Switch * Enobosues: + House Connections + adetors + Logs, Fermées ancl Tee Connectors + Mini-Sute + Overhead Sis
Slide 56: General Electrical Products
General Electrical Products M voltex Mis Bidvest © Voltex | Proudly a Bidvast Company Lighting Products Mvoltex i ae a bs _| Mire get sure Laghas Picken Ligtalag + Piclora Lighting ating: Weal eee + Geung wal Frege | Cromee . Corse Ca * Oh Lambo Downigtts + LG Sone © Dewntighs me Proudly le Bidvest
Slide 57: Lighting Products
Lighting Products + Explosion Proof Lumwenrea, = SovAbests & aorescnet Fangs > Eimapeney & Ex taghes uw © Voltex | Proudly a Bidvest Company is ? a etary ove wens Lighting Products ‘ q ow vp ceed ee 18118 LS Staneland Fluorssearn Meo Langan, 2h tt or at es + Woltaga =_—_——lCC ems arses mone Smears ©
Slide 58: Accessories & Consumables
Accessories & Consumables ACCESSORIES & CONSUMABLES @ Proudly le Bidvest @ Voltex | Proudly a Bidvest Company
Slide 59: Masterpack: nature of operations
re teas, masterpack premium brand packaging MASTERPACK GAUTENG CNR WHITWORTH & HYSER STREETS HERIOTDALE 2084 = SOUTH AFRICA Nature of Operations Innovative Design and Manufacture of folding cartons and package inserts for the markets: e Healthcare (53%) *® Personal Care (21%) © Premium Food (20%) FM
Slide 60: Key Competitive Advantage/Niche/Unique offering
Key Competitive Advantage/Niche/Unique offering ° Pharmaceutical and Food Safety Compliance Technical ability and skill Innovative Customer aligned solutions Global Packaging Alliance (GPA) - www.global-packaging-alliance.com o “Think Global act Local” o. Sharing of = Product design * Operational Ex
Slide 61: me %T “Ss
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Slide 62: Commercial Products
Commercial Products H® Bidvest Es Investor Presentation June 2017 Business Description & Nature of Activities >» We area niche’ Industrial and Consumer Group specialising in branded product (made under license or direct from principal) or own brand equivalent > Approximately 65% of our products are
Slide 63: Products & Services
Products & Services G.Fox (Rentrecer Products & Services Cont... @PLUMBLINK _ » ’ : w f 7 aos Bec REE WS Bidvest Gp treet re:
Slide 64: Products & Services Cont...
Products & Services Cont... industrial Cont... MP Bidvest MX Gls (BUFFALS tiki stikki WY Bicvest , 7) Comer Predechs
Slide 65: Products & Services Cont...
Products & Services Cont... Consumer cv = i ie . ‘ RGA Nas ©) “ey a a, WP Bidvest : ‘Coameri Prodi:
Slide 66: Market Conditions / Opportunities / Challenges
Market Conditions / Opportunities / Challenges > Market conditions remain challenging based on a stagnant South African economy > industrial businesses rely on manufacturing, mining and construction sectors > Consumer businesses rely on the consumer > But it is not all doom and gloom. There are many
Slide 67: Office & Print Presentation 2017
Mf Bidvest B® Office & Print PRESENTATION 2017 KEVIN Companies operaie in the following areas: Office Products Data, Print & Packaging.
Slide 68: Office Products
Office Products - SA's largest office product company since 1949 - Well known for Back To School campaign - National cistribuiion mainly via 3 DC's in Pencil Park, Durban (new) & Cape Town (new) - Includes Hortors/SA Diaries which provide legal farms and registers & diares > 34 retail stores - Natio
Slide 69: Furniture and Technology
2 seating Furniture Makers egovisienir Technology - SA's no 1 office automation company - Main produst is Bizhub > Manages print rooms - Provides document storaye & management solutions: ~ Provides software which monitors over 11 500 Limited Payout Machines nationally - Provides specialist software
Slide 70: Data, Print & Packaging
Data, Print & Packaging Data “Multi channel communication’ means it provides the ability for its customers to communicate with their customers via the channel of their choice This channel can be looking at a computer screen, operating a handheld device or openinga letter Latest innovation is Animate
Slide 71: Data, Print & Packaging: Packaging
Data, Print & Packaging Packaging Quer Supplies paper bags & Warehouser & distributor Niched commercial Packaging for clients Seriettes to the fast of food packaging for the print company for jobs Tequinng stringent food industry retail, deti & bakery requinng quick accreditations ag the industnes f
Slide 72: Cecil Nurse
Cecil Nurse. THE MODERN OFFICE. DESIGNED. DELIVERED. Cecil Nurse is the leading retailer and distributor of quality office furniture systems in southern Africa. With industry experience spanning more than 70 years, Cecil Nurse offers locally-manufactured, stocked, imported and bespoke office furnitu
Slide 73: Cecil Nurse: international trends
Cecil Nurse. INTERNATIONAL TRENDS Experienced product development teams are always aware what is trending in the industry and, in turn, source functional, relevant and aesthetically pleasing office furniture products both nationally and internationally. ERGONOMICS The classic adage by which ergonomi